Document:

SUBORDINATION AGREEMENT

            THIS SUBORDINATION AGREEMENT (this "Agreement"),  executed effective
as of the 8th day of September,  2000, is made by MONTROSE  INVESTMENTS  LTD., a
Cayman Islands exempt company ("Subordinated  Creditor"), and TIDEL ENGINEERING,
L.P., a Delaware limited partnership ("Borrower"),  TIDEL TECHNOLOGIES,  INC., a
Delaware  corporation  ("Parent" or "Debtor"),  in favor of THE CHASE  MANHATTAN
BANK, a New York state banking  corporation,  together with its  successors  and
assigns ("Lender").

                              W I T N E S S E T H:

            WHEREAS, on April 1, 1999, Lender, Borrower, and Parent entered into
that certain  Credit  Agreement  (including  any and all presently  existing and
hereafter entered into amendments,  modifications and restatements  thereof, the
"Credit  Agreement")  pursuant to which Lender agreed to make loans and advances
(collectively  the "Loans") to Borrower and Parent in accordance  with the terms
thereof;

            WHEREAS,  the Loans are evidenced by that certain  Revolving  Credit
Note of even date with the Credit  Agreement,  in the stated principal amount of
$7,000,000.00,  and  that  certain  Term  Note  of even  date  with  the  Credit
Agreement, in the stated principal amount of $544,000.00,  each bearing interest
and being payable to the order of Lender as therein provided (together with each
renewal,  extension,  modification,  rearrangement  thereof and  replacement and
substitution therefor, collectively, the "Notes");

            WHEREAS, Debtor is indebted to Subordinated Creditor and/or may from
time to time  become  indebted  to  Subordinated  Creditor  for other or further
indebtedness,  liabilities or obligations.  All such indebtedness now owing, and
all other  indebtedness,  liabilities or  obligations of Debtor to  Subordinated
Creditor,  now or hereafter  existing  (whether  created directly or acquired by
assignment or otherwise;  whether evidenced by a note, open account, application
for letter of credit,  or otherwise;  whether  absolute or  contingent;  whether
joint,  several  or  independent;   whether  arising  by  operation  of  law  or
otherwise),  including,  without limitation, that certain loan from Subordinated
Creditor to Debtor evidenced by that one certain 6% Convertible  Debenture,  due
September 8, 2004,  dated September 8, 2000 in the original  principal amount of
FIFTEEN MILLION AND NO/100THS  DOLLARS  ($15,000,000)  ("Subordinated  Note") as
same may be renewed, consolidated, amended, extended, or otherwise modified plus
interest and  premiums,  if any,  thereon and other  amounts  payable in respect
thereof are hereinafter  referred to as the "Subordinated  Debt" of Subordinated
Creditor; and

            WHEREAS,  it is a condition  precedent to the making of the Loans to
Borrower  and  Parent by Lender  pursuant  to the Notes  executed  by Parent and
Borrower,  as maker  or  borrower,  and the  making  by  Lender  of any  further
financial  accommodation to Borrower and Parent that  Subordinated  Creditor and
Debtor shall have executed and delivered this Agreement to Lender.

            NOW,  THEREFORE,  in  consideration  of the premises and in order to
induce Lender to make the Loans,  Subordinated  Creditor and Debtor hereby agree
as follows:

            SECTION 1.  Agreement  to  Subordinate.  Subordinated  Creditor  and
Debtor  agree that the payment of the  principal  of, and  interest  on, and all
other amounts owing in respect of the  Subordinated  Debt is and shall be hereby
expressly  subordinated,  to the extent and in the manner hereinafter set forth,
to the prior payment in full of all indebtedness, liabilities and obligations of
the  Borrower  and Debtor  under the Notes or any other  document or  instrument
evidencing,  securing,  guaranteeing  or in any  way  pertaining  to  the  Loans
(collectively  the  "Loan  Documents"),  and all  other  indebtedness  owing  by
Borrower and/or

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Parent to Lender  howsoever  evidenced  (such  documents  evidencing,  securing,
guaranteeing,  or pertaining to such other indebtedness are also included within
the  definition  of the "Loan  Documents"),  whether now or hereafter  existing,
whether for principal,  interest (including without limitation interest accruing
after the  commencement of any proceeding  referred to in Section 3), or whether
fees,   expenses  or  otherwise   (all  such   obligations   being  the  "Senior
Indebtedness").

            SECTION 2. A. No Payment on the Subordinated Debt.

            (i) Unless and until all Senior  Indebtedness  has been paid in full
and no commitment is in existence to advance or create Senior Indebtedness:

                   (A) except as provided  in 2.B and 2.C,  no payment  shall be
            made by Debtor, directly or indirectly,  in respect of the principal
            of, or interest or premium on, or otherwise owing in respect of, the
            Subordinated Debt, and

                   (B) except as provided in 2.B and 2.C,  Subordinated Creditor
            shall not ask, demand, sue for, take any action to enforce,  take or
            receive,  directly or indirectly,  in cash or other property  (other
            than  Common  Stock),  by  sale,  set-off  or in  any  other  manner
            whatsoever  any  moneys  which may now or  hereafter  be owing  with
            respect to the Subordinated Debt.

Notwithstanding the foregoing,  Subordinated  Creditor may demand, sue for, take
any  action,  or  commence  proceedings  to  enforce  the  following  so long as
Subordinated Creditor does not breach its agreements in Section 4, below:

            (X)  Debtor's   obligations   and   agreements  in  respect  of  the
            Subordinated  Debt  or  under  the  Subordinated  Note  and  related
            documents that are non-monetary in nature, and

            (Y)   Subordinated   Creditor's   rights  and  remedies   under  the
            Subordinated  Note and  related  documents  (other  than  rights and
            remedies   consisting  of  the  payment  of  cash  to   Subordinated
            Creditor).

            (ii)  In the  event  that,  notwithstanding  the  provisions  of the
preceding  subsection (i) of this Section 2.A, and except as provided in 2.B and
2.C below,  Debtor  shall make any  payment on account of the  principal  of, or
interest on, or amounts  otherwise  owing in respect of, the  Subordinated  Debt
while Senior  Indebtedness has not been paid in full or while a commitment is in
existence to advance or create any Senior  Indebtedness,  such payment  shall be
segregated  from other funds and property of  Subordinated  Creditor and held by
the Subordinated  Creditor,  in trust for the benefit of, and shall forthwith be
paid over and delivered to,  Lender or the holder of Senior  Indebtedness  (with
any necessary endorsement) for application pro rata to the payment of all Senior
Indebtedness  remaining  unpaid  to  the  extent  necessary  to pay  all  Senior
Indebtedness  or held as  collateral  in the case of non cash  property  for the
payment of the Senior Indebtedness.

            B.  Principal  and Interest on  Subordinated  Debt Prior to Default.
Notwithstanding anything to the contrary contained in 2.A so long as there shall
exist no Event of Default as  defined in any of the Loan  Documents,  Debtor may
from time to time pay or cause to be paid, and Subordinated Creditor may receive
and retain for its own account, regularly scheduled payments of accrued interest
as and  when  such  payments  are  due  on the  Subordinated  Note.  Debtor  and
Subordinated  Creditor  will not change the schedule of payments as to principal
or  interest  without  Lender's  prior  written  consent.  Each  of  Debtor  and
Subordinated  Creditor shall maintain  records with respect to such payments and
upon the happening of any Event of Default,  Debtor shall have no right to make,
and  Subordinated  Creditor shall cease to have the right to receive and retain,
such  payments  in cash;  and any  payments  in cash  received  by

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<PAGE>

Subordinated  Creditor shall be held in trust for the benefit of Senior Creditor
in accordance with this Agreement.

            C.  Payments  on  Subordinated  Debt in Common  Stock or Addition to
Principal  Amount Due under the  Subordinated  Note.  Whether or not there shall
exist any Event of Default as defined in any of the Loan  Documents,  Debtor may
make,  and  Subordinated  Creditor  may receive and retain for its own  account,
payments  of  principal,  accrued  interest,   penalties,   liquidated  damages,
premiums,   or  any  other  amounts  owing  under  the  Subordinated   Note  and
Registration  Rights Agreement entered into as of the date hereof between Debtor
and the  purchasers  signatory  thereto,  either in the form of Common Stock (as
such term is  defined in the  Subordinated  Note) or by adding the amount of any
such payments to the principal amount due under the  Subordinated  Note (but not
in cash),  pursuant to Section 2(c) of the Registration Rights Agreement entered
into as of the date hereof between Debtor and the purchasers  signatory  thereto
and Section 7 of the Subordinated Note.

            SECTION 3. In Furtherance of Subordination.

            (a) Upon any  distribution  of all or any of the  assets  of  Debtor
(other than assets  constituting  Common Stock)  (whether in connection with the
dissolution, winding up, liquidation, arrangement,  reorganization,  adjustment,
protection,  relief or  composition  of Debtor  or its debts or  whether  in any
bankruptcy, insolvency, rearrangement,  reorganization,  receivership, relief or
similar  proceedings  or whether upon an assignment for the benefit of creditors
or otherwise) the following provisions shall apply:

            (i) Lender or the holder of all Senior  Indebtedness  shall first be
entitled to receive payment in full of the principal thereof,  premium,  if any,
and interest (including  post-petition interest) due thereon before Subordinated
Creditor  or the holder of the  Subordinated  Debt is  entitled  to receive  any
payment on account of the  principal of or interest on or any other amount owing
in respect of the Subordinated Debt;

            (ii) any payment,  dividend or  distribution  of assets of Debtor of
any  kind or  character,  whether  in  cash,  property  or  securities  to which
Subordinated  Creditor or the holder of the Subordinated  Debt would be entitled
except for the provisions of this  Agreement,  shall be paid by the  liquidating
trustee or agent or other person making such payment or distribution,  whether a
trustee in  bankruptcy,  a receiver or  liquidating  trustee or other trustee or
agent,  directly to Lender or the holder of Senior  Indebtedness,  to the extent
necessary to make payment in full of all Senior Indebtedness remaining unpaid;

            (iii) in any such  proceeding,  Lender or the  holder of the  Senior
Indebtedness  is hereby  irrevocably  authorized  and  empowered (in the name of
Subordinated  Creditor or otherwise),  but shall have no obligation,  to demand,
sue for,  collect  and  receive  every  payment or  distribution  referred to in
clauses (i) and (ii) of subsection (a) above and given acquittance  therefor and
to file  claims  and  proofs  of claim and take such  other  action  (including,
without  limitation,  voting the  Subordinated  Debt or  enforcing  any security
interest or other lien securing payment of the Subordinated Debt) as it may deem
necessary or advisable for the exercise or  enforcement  of any of the rights or
interests of Lender or the holder of Senior Indebtedness hereunder;

            (iv)  in  any  proceeding,  Subordinated  Creditor  shall  duly  and
promptly  take such action to the  extent,  and only to the extent as Lender may
expressly request:

                  (A) to collect the Subordinated Debt for the account of Lender
or the holder of Senior

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<PAGE>

Indebtedness and to file appropriate claims or proofs of claim in respect of the
Subordinated Debt;

                  (B) to execute and deliver to Lender such powers of  attorney,
assignments,  or other  instruments  as it may  request in order to enable it to
enforce any and all claims with respect to, and any security interests and other
liens securing payment of, the Subordinated Debt; and

                  (C)  to  collect  and   receive   any  and  all   payments  or
distributions  which may be payable or  deliverable  upon or with respect to the
Subordinated Debt; and

            (v) in any such proceeding, Subordinated Creditor shall not have any
right  to  setoff  against  the  Subordinated  Debt  any  indebtedness  owed  by
Subordinated  Creditor to Debtor (including,  without  limitation,  any right of
setoff under Section 553 of the  Bankruptcy  Code),  and  Subordinated  Creditor
hereby irrevocably  agrees, to the fullest extent permitted by law, that it will
not exercise (and herein waives) any right of setoff.

If the foregoing  waivers are adjudicated  unenforceable by a court of competent
jurisdiction,  then  Subordinated  Creditor  agrees  that,  in the event that it
exercises any right of setoff in any such proceeding, Subordinated Creditor will
pay directly to Lender or the holder of the Senior Indebtedness remaining unpaid
or unprovided for, an amount equal to the amount of Subordinated  Debt which was
so setoff,  for  application to such Senior  Indebtedness  until all such Senior
Indebtedness shall have been paid in full;

            (b) in the event that,  notwithstanding the foregoing  provisions of
this Section 3, any payment or  distribution  of assets of Debtor of any kind or
character,  whether  in cash,  property  or  securities,  shall be  received  by
Subordinated  Creditor on account of principal or interest on Subordinated  Debt
before all Senior  Indebtedness  is paid in full, or effective  provision  shall
have been made for its payment,  such payment or distribution  shall be received
and held in trust for and  shall be paid  over to  Lender  or the  holder of the
Senior  Indebtedness  remaining unpaid or unprovided for, for application to the
payment of such Senior  Indebtedness  until all such Senior  Indebtedness  shall
have been paid in full; and

            (c)  Lender  or the  holder  of the  Senior  Indebtedness  is hereby
authorized to demand  specific  performance  of this  Agreement,  whether or not
Debtor shall have complied with any of the provisions  hereof  applicable to it,
at any time when  Subordinated  Creditor shall have failed to comply with any of
the provisions of this Agreement applicable to it. Subordinated  Creditor hereby
irrevocably  waives any defense based on the adequacy of a remedy at law,  which
might be asserted as a bar to such remedy of specific performance.

            SECTION 4. Subordination of all Liens  Subordinated  Creditor agrees
that it will  not hold any lien or  security  interest  in any real or  personal
property as security for the Subordinated Debt unless Lender has given its prior
written  consent to the creation  thereof.  In the event  Subordinated  Creditor
shall  acquire any lien or security  interest as security  for the  Subordinated
Debt,  regardless  of whether  such lien or security  interest is  permitted  or
prohibited by this Agreement or the Loan Documents,  Subordinated  Creditor will
hold such lien or security  interest for the benefit of Lender and shall enforce
such lien or security  interest in accordance  with the written  instructions of
Lender.  Any cash or other property  received on account of any lien or security
interest securing the Subordinated Debt shall be delivered to Lender and, in the
case of cash, applied to, or, in the case of other property,  held as collateral
for, the Senior Indebtedness. To the extent that any Subordinated Debt is now or
hereafter secured by a lien or security interest (a "Subordinate  Lien") against
any  real  or  personal  property  that is also  subject  to a lien or  security
interest  securing  the  Senior  Indebtedness  (a "Senior  Lien"),  Subordinated
Creditor  agrees  that  such  Subordinate  Lien  shall  be  second,  junior  and
subordinate to such Senior Lien and such Senior Lien shall be first and prior to
such Subordinate Lien. It is further agreed that the priorities specified in the
preceding  sentence

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<PAGE>

are applicable  irrespective of the time or order of attachment or perfection of
liens  and  security  interests,  or the time or order of  filing  of liens  and
security interests,  or the time or order of filing of financing statements,  or
the giving or failure to give notice of the acquisition or expected  acquisition
of purchase money or other security interests.

            SECTION 5. No Commencement of Any Proceeding.  Subordinated Creditor
agrees that, so long as any of the Senior  Indebtedness  shall remain unpaid, it
will not commence,  or join with any creditor other than Lender or the holder of
Senior Indebtedness in commencing, any proceeding for any distribution of all or
any of the  assets of Debtor  (other  than  assets  constituting  Common  Stock)
(whether  in  connection  with  the   dissolution,   winding  up,   liquidation,
arrangement,  reorganization,  adjustment,  protection, relief or composition of
Debtor or its debts or whether  in any  bankruptcy,  insolvency,  rearrangement,
reorganization,  receivership,  relief or similar proceedings or whether upon an
assignment for the benefit of creditors or otherwise).

            SECTION 6. Rights of Subrogation.  Subordinated Creditor agrees that
no  payment  or  distribution  to  Lender or the  holder of Senior  Indebtedness
pursuant to the provisions of this Agreement shall entitle Subordinated Creditor
to  exercise  any  rights of  subrogation  in respect  thereof  until the Senior
Indebtedness shall have been paid in full.

            SECTION 7. Subordination  Legend;  Further Assurances.  Subordinated
Creditor and Debtor will cause each instrument  evidencing  Subordinated Debt to
be endorsed with the following legend:

            "The  indebtedness  evidenced by this  instrument is subordinated to
            the prior payment in full of the Senior  Indebtedness (as defined in
            the Subordination  Agreement  hereinafter  referred to) pursuant to,
            and to the extent provided in, the Subordination Agreement effective
            as of September 8, 2000,  by the maker hereof and payee named herein
            in favor of Lender or the holder of Senior Indebtedness  referred to
            in such Subordination Agreement."

Subordinated  Creditor and Debtor each will further mark its books of account in
such a manner as shall be effective to give proper  notice of the effect of this
Agreement and will, in the case of any Subordinated  Debt which is not evidenced
by any instrument,  upon Lender's  reasonable  request,  cause such Subordinated
Debt to be evidenced by an appropriate  instrument or instruments  endorsed with
the above legend. Subordinated Creditor and Debtor each will, at its expense and
at any time and from time to time,  promptly  execute  and  deliver  all further
instruments and documents,  and take all further actions,  that may be necessary
or desirable,  or that Lender may  reasonably  request,  in order to protect any
right or interest  granted or purported to be granted hereby or to enable Lender
to exercise and enforce its rights and remedies hereunder.

            SECTION  8.  No  Change  in or  Disposition  of  Subordinated  Debt.
Subordinated  Creditor  shall not: (a) cancel or otherwise  discharge any of the
Subordinated Debt, except by the issuance of Common Stock as permitted under the
Subordinated  Debenture,  or  subordinate  any of the  Subordinated  Debt to any
indebtedness  of Debtor other than the Senior  Indebtedness,  except as provided
otherwise  in  Section  2,  above;  or  (b)  permit  the  terms  of  any  of the
Subordinated  Debt to be changed  in such a manner as to have an adverse  effect
upon the rights or  interests  of the Lender  under this  Agreement  or the Loan
Documents.

            SECTION 9.  Agreement by the Debtor.  Debtor agrees that it will not
make any payment of any of the Subordinated  Debt, nor take any other action, in
contravention  of the provisions of this  Agreement.  Nothing  contained in this
Agreement is intended to or shall impair,  as between  Debtor,  on the one hand,
and its  creditors  other than the  holders of the Senior  Indebtedness  and the
Subordinated  Debt,  on the other  hand,  the  obligations  of Debtor to pay the
holders of the Subordinated  Debt all amounts owing on

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<PAGE>

the  Subordinated  Debt as and when the same  shall  become  due and  payable in
accordance  with its terms,  or to affect the relative  rights of the holders of
Subordinated  Debt,  on the one hand,  and  creditors  of the Debtor  other than
holders of the Senior Indebtedness, on the other hand.

            SECTION 10. Senior Indebtedness  Hereunder Not Affected.  All rights
and interests of Lender or the holder of Senior Indebtedness hereunder,  and all
agreements  and  obligations  of  Subordinated  Creditor  and Debtor  under this
Agreement, shall remain in full force and effect irrespective of:

            (i) any lack of validity or  enforceability of all or any portion of
this Agreement;

            (ii) any change in the amount of interest  rate  accruing  on, time,
manner or place of payment of, or in any other term of, all or any of the Senior
Indebtedness,  or any other amendment or waiver of any consent to departure from
any of the Loan Documents,  including, without limitation,  changes in the terms
of  disbursement  of the Loan  proceeds  or  repayment  thereof,  modifications,
extensions  or  renewals  of  payment  dates,  changes in  interest  rate or the
advancement of additional funds by the Lender in its discretion;

            (iii) any exchange,  release or  non-perfection of any collateral or
any release or amendment or waiver of or consent to departure from any guaranty,
for all or any of the Senior Indebtedness; or

            (iv) any other circumstance in respect of this Agreement which might
otherwise  constitute a defense  available  to, or a discharge of, Debtor or any
guarantor  of or in  respect  of the  Senior  Indebtedness  or the  Subordinated
Creditor.

            SECTION  11.  Reinstatement.  This  Agreement  shall  continue to be
effective  or be  reinstated,  as the case may be, if at any time any payment of
any of the Senior  Indebtedness  is rescinded  or must  otherwise be returned by
Lender upon the insolvency, bankruptcy or reorganization of Debtor or otherwise,
all as though such payment had not been made.

            SECTION 12. Waivers. Subordinated Creditor hereby waives promptness,
diligence,  notice of acceptance,  notice of intention to accelerate,  notice of
acceleration and any other notice with respect to any of the Senior Indebtedness
and this Agreement and any requirement that Lender protect,  secure,  perfect or
insure any security  interest or lien or any property subject thereto or exhaust
any right or take any action against Debtor or any other person or entity or any
collateral.  Subordinated  Creditor waives any right or benefit of any notice of
any action, event or circumstance relating to the Senior Indebtedness, including
but not limited to the incurrence,  modification, default, exercise of remedies,
compromise or release of or with respect to Senior Indebtedness.

            SECTION 13. Representations and Warranties.

            (a) Debtor  hereby  represents  and  warrants  as  follows:  (i) the
Subordinated  Debt now outstanding  (true and complete copies of any instruments
evidencing  which having been furnished to the Lender) has been duly  authorized
by Debtor, has not been amended or otherwise modified and constitutes the legal,
valid and binding obligation of Debtor enforceable  against Debtor in accordance
with its terms; (ii) there exists no default in respect of any such Subordinated
Debt; (iii) Debtor is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation as set forth on
the  first  page  hereof;  and  Debtor  has all  requisite  corporate  power and
authority  to  execute,  deliver  and  perform  this  Agreement;  and  (iv)  The
execution,  delivery and  performance by Debtor of this Agreement have been duly
authorized by all necessary  corporate action and do not and will not contravene
its articles, charter or bylaws; and

<PAGE>

            (b) Subordinated Creditor hereby represents and warrants as follows:
(i) Subordinated  Creditor owns the  Subordinated  Debt now outstanding free and
clear of any lien,  security  interest,  charge or  encumbrance or any rights of
others; (ii) The execution, delivery and performance by Subordinated Creditor of
this Agreement do not and will not contravene any law or governmental regulation
or any contractual  restriction binding on or affecting Subordinated Creditor or
any of its properties, and do not and will not result in or require the creation
of any lien,  security  interest  or other  charge or  encumbrance  upon or with
respect to any of its  properties;  (iii) This  Agreement is a legal,  valid and
binding obligation of Subordinated  Creditor,  enforceable against  Subordinated
Creditor  in  accordance  with  its  terms  except  as  limited  by  bankruptcy,
insolvency or other laws of general  application  relating to the enforcement of
creditors' rights and by general equitable principles;  and (iv) There exists no
default in respect of any Subordinated Debt.

            SECTION 14. Amendments, Etc. No amendment or waiver of any provision
of this  Agreement  nor consent to any  departure  by  Subordinated  Creditor or
Debtor  therefrom  shall in any event be  effective  unless the same shall be in
writing and signed by Lender, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

            SECTION 15. Expenses.  Subordinated  Creditor and Debtor jointly and
severally  agree to pay,  upon  demand,  to  Lender  the  amount  of any and all
reasonable expenses,  including the reasonable fees and expenses of its counsel,
which Lender or any other holders of Senior Indebtedness may incur in connection
with the  exercise  or  enforcement  of any of the  rights or  interests  of the
holders of Senior Indebtedness hereunder.

            SECTION 16. Addresses for Notices. All communications from any party
to  any  other  shall  be  in  writing   (including   telegraphic  and  telecopy
communication).  Communications to any party shall be delivered to another party
by certified or registered mail,  return receipt  requested,  or sent by private
overnight courier or telegraphed, or telecopied,  addressed to it at the address
of such party specified next to its signature in this  Agreement.  Any party may
designate a different address for receipt of communications by written notice to
the other parties.  All  communications  shall be effective when received and if
receipt is refused,  either three (3) business days after deposit in the mail or
the  date of  attempted  delivery  as  confirmed  by  private  courier  service,
telegraph company or telecopy operator.

            SECTION 17. No Waiver, Remedies. No failure on the part of Lender to
exercise,  and no delay in exercising,  any right  hereunder  shall operate as a
waiver thereof;  nor shall any single or partial exercise of any right hereunder
preclude  any other or further  exercise  thereof or the  exercise  of any other
right.  The remedies  herein  provided are  cumulative  and not exclusive of any
remedies provided by law.

            SECTION 18. Continuing Agreement; Transfer of Notes. All warranties,
representations and covenants made by Subordinated  Creditor or Debtor herein or
in any certificate or other instrument delivered by it or on its behalf shall be
considered  to have been relied upon by Lender and shall  survive  execution and
delivery of the Loan Documents  regardless of any  investigation by or on behalf
of any thereof. This Agreement is a continuing agreement and shall:(i) remain in
full force and  effect  until the  Senior  Indebtedness  shall have been paid in
full; (ii) be binding upon Subordinated Creditor,  Debtor and its successors and
assigns and any subsequent  holder of Subordinated  Debt; and (iii) inure to the
benefit of and be  enforceable  by Lender and its  successors,  transferees  and
assigns.  Without limiting the generality of the foregoing clause (iii),  Lender
may assign or otherwise  transfer the Notes or any other  evidence of any Senior
Indebtedness held by it to any other person or entity,  and such other person or
entity  shall  thereupon  become  vested with all the rights in respect  thereof
granted to such lender herein or otherwise.

            SECTION 19.  GOVERNING  LAW.  THIS  AGREEMENT  SHALL BE GOVERNED AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

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            SECTION 20.  Counterparts and Facsimile  Signatures.  This Agreement
may be  separately  executed  in any  number of  counterparts  and by  different
parties hereto in separate counterparts, each of which when so executed shall be
deemed to constitute one and the same Agreement. Any party to this Agreement may
indicate  its  intention to be bound by this  Agreement by its  signature to the
signature page hereof and the delivery of the signature page hereof to the other
party or its representatives by facsimile transmission or telecopy. The delivery
of  a  party's  signature  page  on  the  signature  page  hereof  by  facsimile
transmission  or telecopy  shall have the same force and effect as if such party
signed and delivered this Agreement in person.

            SECTION 21. Section Headings.  Headings are for convenience only and
shall be  given no  substantive  meaning  or  significance  in  construing  this
Agreement.

            SECTION  22.  THIS  AGREEMENT  EMBODIES  THE  ENTIRE  AGREEMENT  AND
UNDERSTANDING BY AND AMONG THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF
AND SUPERSEDES ALL PRIOR  AGREEMENTS,  CONSENTS AND  UNDERSTANDINGS  RELATING TO
SUCH  SUBJECT  MATTER  AND  MAY  NOT  BE  CONTRADICTED  BY  EVIDENCE  OF  PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

            THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

                                       8

<PAGE>

            IN WITNESS  WHEREOF,  Debtor and  Subordinated  Creditor have caused
this  Agreement to be duly  executed and delivered by their  officers  thereunto
duly authorized as of the date first above written.

                                           SUBORDINATED CREDITOR:

                                           MONTROSE INVESTMENTS LTD.

                                           By:
                                           Name:
                                           Title:

                                           Address for Notices:

                                           c/o HBK Investments, L.P.
                                           300 Crescent Court, Suite 700
                                           Dallas, Texas  75201
                                           Attn.:  Jeff Estes and Kim Rozman

                                           LENDER:

                                           THE CHASE MANHATTAN BANK

                                           By:
                                               Joanne Bramanti, Vice President

                                           TIDEL ENGINEERING, L.P.,
                                           a Delaware limited partnership

                                           By:   Tidel Cash Systems, Inc.,
                                                 its sole general partner

                                                 By:
                                                        Mark K. Levenick,
                                                        President

                                          TIDEL TECHNOLOGIES, INC.,
                                          a Delaware corporation

                                          By:
                                                  James T. Rash,
                                                  Chief Executive Officer

                                          Address for Notices:
                                          -------------------

                                       9

<PAGE>

                                        Borrower:
                                        Tidel Engineering, L.P.
                                        c/o Tidel Cash Systems, Inc.
                                        5847 San Felipe, Suite 900
                                        Houston, Texas 77057
                                        Attention: James T. Rash

                                        Ultimate Parent:
                                        Tidel Technologies, Inc.
                                        5847 San Felipe, Suite 900
                                        Houston, Texas 77057
                                        Attention: James T. RashSECOND AMENDMENT TO CREDIT AGREEMENT

            This Second Amendment to Credit Agreement (this "Amendment") is made
and entered into as of September 8, 2000, by and among THE CHASE MANHATTAN BANK,
formerly  known as CHASE BANK OF TEXAS,  N.A.,  a national  banking  association
("Lender"),   TIDEL   ENGINEERING,   L.P.   ("Borrower"),   a  Delaware  limited
partnership,  and TIDEL TECHNOLOGIES,  INC., a Delaware  corporation  ("Ultimate
Parent").

                                R E C I T A L S:

            A. On April 1, 1999, Lender,  Borrower,  and Ultimate Parent entered
into that certain  Credit  Agreement  (including  all  amendments  thereto,  the
"Credit  Agreement")  pursuant to which Lender agreed to make loans and advances
(collectively  the "Loans") to Borrower and Ultimate  Parent in accordance  with
the terms  thereof.  Lender,  Borrower  and  Ultimate  Parent  entered into that
certain First Amendment to Credit Agreement, effective as of September 30, 1999.

            B. The Loans are evidenced by that certain  Revolving Credit Note of
even  date  with  the  Credit  Agreement,  in the  stated  principal  amount  of
$7,000,000.00,  and  that  certain  Term  Note  of even  date  with  the  Credit
Agreement, in the stated principal amount of $544,000.00,  each bearing interest
and being payable to the order of Lender as therein provided (collectively,  the
"Notes").  The Credit  Agreement,  the Notes and the documents,  instruments and
agreements executed in connection therewith are collectively  referred to herein
as the "Loan Documents".

            C. Borrower and Ultimate Parent have requested  Lender to consent to
the following:

               (1)     an  investment  in  and/or  a loan  and  other  financial
                       accommodations  to  JRA  222,  Inc.  (d/b/a  Credit  Card
                       Center), a Delaware  corporation,  by Ultimate Parent, in
                       the amount of  $11,000,000,  which will be evidenced by a
                       Term Loan and Security Agreement (the "Credit Card Center
                       Loan Agreement"), between JRA 222, Inc. d/b/a Credit Card
                       Center, as borrower,  and Ultimate Parent, as lender, and
                       various other documents executed in connection  therewith
                       or as security  therefor and other  related  transactions
                       (the "Credit Card Center Loan Documents"); and

               (2)     the  issuance  by  Ultimate   Parent  of  6%  convertible
                       subordinated  debentures (the  "Convertible  Subordinated
                       Debentures")  in the  aggregate  amount  of  $15,000,000,
                       which will be issued to Montrose  Investments  Ltd.,  and
                       other related  transactions which are contemplated in the
                       convertible  Debenture  Purchase  Agreement  dated  as of
                       September 8, 2000,  between  Ultimate Parent and Montrose
                       Investments Ltd.

               D. Borrower and Ultimate  Parent also have  requested that Lender
modify various financial covenants set forth in the Credit Agreement  pertaining
to the following:

<PAGE>

               (1)     revising the Tangible Net Worth covenant; and

               (2)     adding a covenant regarding a Cash Flow Leverage Ratio.

               E. Lender,  at the request of Borrower and Ultimate  Parent,  for
good and valuable consideration,  is willing to enter into this Amendment and to
consent  to (1) the  issuance  of the  Convertible  Subordinated  Debentures  by
Ultimate Parent and the transactions related thereto, and the performance of the
obligations  and agreements of Ultimate  Parent  thereunder,  and (2) the Credit
Card Center  Transaction,  and the performance of the obligations and agreements
of  Ultimate  Parent  thereunder,  all upon the terms and  conditions  set forth
below.

                               A G R E E M E N T:

            NOW,  THEREFORE,  for and in consideration of Ten and No/100 Dollars
($10.00) and other good and valuable consideration,  the receipt and sufficiency
of which are hereby acknowledged,  Borrower,  Ultimate Parent, and Lender hereby
covenant and agree as follows:

            1. Defined Terms.  Capitalized  terms used but not otherwise defined
herein shall have the meanings given to them in the Credit Agreement.

            2. Additional  Definitions.  Section 1.1 of the Credit  Agreement is
hereby amended to add the following definitions:

               Cash Flow Leverage  Ratio shall mean as of any date that the Cash
             Flow Leverage Ratio is calculated,  the ratio of (a) the Total Debt
             to (b)  EBITDA  of the  Borrower  for  the  four  (4)  most  recent
             consecutive   fiscal   quarters  of  the  Borrower   ending  on  or
             immediately  prior to the date of  determination  of the Cash  Flow
             Leverage Ratio.

               Convertible   Subordinated   Debenture   shall   mean  the  Tidel
             Technologies,  Inc. 6% Convertible Debenture Due September 8, 2004,
             issued by  Ultimate  Parent in the  aggregate  principal  amount of
             Fifteen Million Dollars ($15,000,000).

               Convertible  Subordinated  Debenture  Documents  shall  mean  the
             Convertible  Subordinated  Debenture  and that certain  Convertible
             Debenture  Purchase  Agreement  dated  September  8, 2000,  between
             Montrose Investments Ltd. and other investor party(ies) thereto, as
             purchasers,  and  Ultimate  Parent,  as issuer,  and all  documents
             executed in  connection  with the  foregoing,  which  evidence  the
             issuance  of  the  Convertible   Subordinated   Debentures  in  the
             aggregate  amount of  Fifteen  Million  Dollars  ($15,000,000)  and
             related transactions.

               Credit Card Center Loan  Documents  shall mean that  certain Term
             Loan and  Security  Agreement  to be entered  into between JRA 222,
             Inc. d/b/a Credit Card Center, as borrower, and Ultimate Parent, as
             lender,  and all documents  executed in connection  therewith or as
             security  therefor,  which evidence a term loan and other financial
             accommodations  in the principal  amount of Twelve Million  Dollars
             ($12,000,000)  and other  related  documents  evidencing  ancillary
             transactions  and other  investments  in JRA

<PAGE>

             222, Inc. d/b/a Credit Card Center.

               Subordination  Agreement  shall  mean a  Subordination  Agreement
             executed by each holder of a  Convertible  Subordinated  Debenture,
             Borrower and Ultimate Parent, in favor of Lender, pursuant to which
             the holder of a Convertible  Subordinated  Debenture agrees,  among
             other  things,  to  subordinate  its  rights of  payment  under the
             Convertible Subordinated Debenture to Lender's rights of payment of
             the Obligations, in form and substance satisfactory to Lender.

               Total Debt shall mean the sum of the following:

               (a)     the Obligations; and

               (b)     the Indebtedness of Ultimate Parent under the Convertible
                       Subordinated Debenture.

            3. Eligible  Receivables.  Clause (c) of the definition of "Eligible
Receivables" in Section 1.1 of the Credit Agreement is hereby amended to read in
its entirety as follows:

               (c)     The payments due on twenty  percent  (20%) or more of all
                       Receivables  of the  applicable  account  debtor are less
                       than 90 days past the date of invoice;

            4.  Indebtedness.  Schedule  6.16 to the Credit  Agreement is hereby
amended and supplemented to add the following:

               (c)     6%  Convertible  Debentures due September 8, 2004, in the
                       aggregate   principal   amount  of  $15,000,000,   issued
                       pursuant to the Convertible  Debenture Purchase Agreement
                       between  Ultimate  Parent,  as issuer,  and the purchaser
                       party thereto.

             5. Permitted  Indebtedness.  Section 8.1 of the Credit Agreement is
hereby amended by inserting the following  clause  immediately  following clause
(h):

                (i)    Indebtedness under the Convertible Subordinated Debenture
                       Documents;

             6. Permitted  Investments.  Section 8.7 of the Credit  Agreement is
hereby amended by inserting the following  clause  immediately  following clause
(b):

                (c)    Investment in JRA 222,  Inc.  pursuant to the Credit Card
                       Center Loan Documents.

            7. Additional Covenants. Article 8 of the Credit Agreement is hereby
amended  by adding  the  following  Sections,  pursuant  to which  the  Borrower
covenants and agrees with the Lender that prior to the termination of the Credit
Agreement,  the  Borrower  will not,  and will not  suffer or permit  any of its
Subsidiaries, if any, to, do any of the following:

<PAGE>

                        8.12 Cash Flow  Leverage.  Permit the Cash Flow Leverage
            Ratio to be more than 2.00 to 1.00.  The Cash  Flow  Leverage  Ratio
            will be  measured  as of the  last  day of each  fiscal  quarter  of
            Borrower for the period  consisting of the fiscal quarter then ended
            and the immediately preceding three (3) fiscal quarters.

                        8.20   Cash   Payments   on   Convertible   Subordinated
            Debenture.  Permit  Ultimate  Parent to make  payment in cash of any
            Indebtedness under the Convertible  Subordinated Debenture,  without
            Lender's prior written consent;  provided,  however, Ultimate Parent
            may make regularly  scheduled payments in cash of interest,  so long
            as no default or Event of Default has  occurred  and is  continuing.
            Notwithstanding the foregoing,  Ultimate Parent may make payments of
            principal,  accrued interest, and other fees, penalties,  liquidated
            damages, and premiums,  or other amounts owing thereunder (including
            without  limitation  those  payments in Common Stock provided for in
            Section 2(c) of the Registration Rights Agreement entered into as of
            September 8, 2000 between Debtor and the  Purchasers  party thereto,
            and in Section 7 of the Convertible Subordinated Debenture),  as and
            when such  payments are due on the  Subordinated  Note,  but only in
            shares of Common Stock (as such term is defined in the  Subordinated
            Note) and not in cash, or add such amounts to the  principal  amount
            due under the Convertible Subordinated Debenture.  Further, Ultimate
            Parent may pay the fee payable to Value  Investment  Partners,  Inc.
            pursuant to the letter agreement dated August 8, 2000.

                        8.21 Convertible  Subordinated Debenture and Credit Card
            Center  Loan   Documents.   Permit   Ultimate  Parent  to  make  any
            modification  or amendment to the Credit Card Center Loan  Documents
            or the  Convertible  Subordinate  Debenture  without  Lender's prior
            written consent.

            8.  Tangible  Net Worth.  Section  8.12 of the Credit  Agreement  is
hereby amended to read in its entirety as follows:

                        8.12  Tangible Net Worth.  Permit the Tangible Net Worth
            of  the  Borrower   (expressly   excluding   Ultimate  Parent,   its
            Subsidiaries and Borrower's Subsidiaries), as determined at any time
            and from time to time, to be less than the sum of the following:

                        (i)    $14,000,000.00; plus

                        (ii)   the  amount,  which  shall be added to clause (i)
                               above as of the end of each calendar  month, on a
                               cumulative  basis,  beginning  with the  calendar
                               month  beginning  October 1, 1998 and  continuing
                               each calendar month  thereafter  through the term
                               of  this   Agreement,   that  is   equal  to  the
                               sequential monthly  calculations of fifty percent
                               (50%) of the positive  (but not the negative) net
                               income of the Borrower for each  calendar  month,
                               beginning on and after  October 1, 1998 (it being
                               acknowledged  that such calculations for calendar
                               months  prior to April 1, 1999 shall be made with
                               respect   to   Tidel   Engineering,   Inc.,   the
                               predecessor-in-interest to the Borrower); plus

<PAGE>

                        (iii)  the  amount  of  all  capital   contributions  to
                               Borrower  on or after  October  1, 1998 (it being
                               acknowledged  that such calculations for calendar
                               months  prior to April 1, 1999 shall be made with
                               respect   to   Tidel   Engineering,   Inc.,   the
                               predecessor-in-interest   to  the  Borrower,  and
                               shall  be made  with  respect  to the  amount  of
                               consideration  received  in  exchange  for equity
                               interests  issued  by  Tidel  Engineering,   Inc.
                               during the applicable period of time).

             9.  Additional  Events  of  Default.  Section  9.1  of  the  Credit
Agreement is hereby amended by re-lettering clauses (n), (o), and (p) as clauses
(p),  (q),  and  (r),  respectively,  and  by  inserting  the  following  clause
immediately following clause (m):

                 (n)   the occurrence of an "Event of Default",  as such term is
                       defined in the Convertible Subordinated Debenture.

Upon  execution and delivery of the Credit Card Center Loan  Agreement,  Section
9.1 of the Credit Agreement,  provided the conditions to closing thereunder have
been  satisfied,  will be amended,  effective  without any further action by the
parties, by inserting the following clause immediately following clause (n):

                 (o)   the occurrence of an "Event of Default",  as such term is
                       defined in the Credit Card Center Term Loan and  Security
                       Agreement.

             10. Compliance Certificate.  Exhibit D to the Credit Agreement, the
form of Compliance  Certificate,  is hereby deleted in its entirety and replaced
with Exhibit D attached hereto.

             11. Borrowing Base Certificate.  Exhibit H to the Credit Agreement,
the form of Borrowing  Base  Certificate,  is hereby deleted in its entirety and
replaced with Exhibit H attached hereto.

             12.  Amendment  and  Consent  Fee. In  consideration  of the Lender
entering  into this  Amendment  and giving its consent to the  Debenture and the
Investment,  the  Borrower  agrees to pay to the Lender a  commitment  fee in an
amount equal to  Twenty-Five  Thousand  Dollars  ($25,000)  (the  "Amendment and
Consent Fee").

             13. Consent.

                 (a)   Convertible   Subordinated    Debentures.    Subject   to
                       satisfaction   of  and  compliance  with  all  terms  and
                       conditions  precedent  set  forth in  Section  14  below,
                       Lender consents to the issuance by Ultimate Parent of the
                       Convertible    Subordinated    Debentures   and   related
                       transactions  in accordance with the terms and conditions
                       of the Convertible  Subordinated  Debenture Documents and
                       the  performance  of Ultimate  Parent's  obligations  and
                       agreements thereunder.

                 (b)   Credit Card Center  Transaction.  Subject to satisfaction
                       of and compliance with all terms and conditions precedent
                       in Section 15 below,  Lender

<PAGE>

                       consents  to  the  Credit  Card  Center   Transaction  by
                       Ultimate   Parent  in  accordance   with  the  terms  and
                       conditions  of the Credit Card Center  Documents  and the
                       performance   of  Ultimate   Parent's   obligations   and
                       agreements thereunder.

            14.  Conditions  Precedent  to Consent to  Amendment  and Consent to
Convertible  Subordinated Debenture.  The effectiveness of this Amendment and of
Lender's  consent to the Convertible  Subordinated  Debentures is subject to the
satisfaction of the following conditions  precedent,  unless specifically waived
in writing by Lender:

                 (1)   Lender shall have received a Subordination  Agreement, in
                       form and substance  satisfactory to Lender, duly executed
                       by each holder of the Convertible Subordinated Debenture;

                 (2)   The representations  and warranties  contained herein and
                       in all Loan Documents,  as amended hereby,  shall be true
                       and  correct  in all  material  respects  as of the  date
                       hereof as if made on the date hereof;

                 (3)   No Event of Default by Borrower or Ultimate  Parent under
                       the Loan  Documents,  as amended  hereby,  as of the date
                       hereof,  shall have  occurred  and be  continuing  and no
                       event or  conditions  shall have  occurred  that with the
                       giving  of  notice  or lapse of time or both  would be an
                       Event of Default by Borrower or Ultimate Parent under the
                       Loan Documents, as amended hereby, as of the date hereof,
                       unless such Event of Default has been specifically waived
                       in writing by Lender;

                 (4)   Lender  shall  have  received   executed  copies  of  the
                       Convertible   Subordinated   Debenture   and  all   other
                       documents  executed in  connection  therewith  (including
                       without  limitation,  the  Purchase  Agreement,  and  the
                       Registration Rights Agreement,  as such terms are defined
                       in the Convertible Subordinated Debenture),  certified by
                       Borrower as being true and complete; and

                 (5)   Lender shall have received the Amendment and Consent Fee.

             15.  Conditions  Precedent to the Consent to the Credit Card Center
Transaction.  The  effectiveness  of the  consent  to  the  Credit  Card  Center
Transaction  is  subject  to  the  satisfaction  of  the  following   conditions
precedent, unless specifically waived in writing by Lender:

                  (1)  The representations  and warranties  contained herein and
                       in all Loan Documents,  as amended hereby,  shall be true
                       and  correct  in all  materials  respects  as of the date
                       hereof as if made on the date hereof;

                  (2)  No Event of Default by Borrower or Ultimate  Parent under
                       the Loan Documents, as amended hereby, as amended hereby,
                       shall have  occurred  and be  continuing  and no event or
                       conditions  shall have  occurred  that with the giving of
                       notice  or  lapse  of time or both  would  be an Event of
                       Default

<PAGE>

                       by Borrower or Ultimate  Parent under the Loan Documents,
                       as amended  hereby,  as of the date  hereof,  unless such
                       Event of Default has been specifically  waived in writing
                       by Lender;

                  (3)  Lender shall have received  copies of the executed Credit
                       Card  Center  Loan  Documents,  certified  by Borrower as
                       being true and complete; and

                  (4)  Lender shall have received a collateral assignment of the
                       Credit Card Center Loan Documents,  in form and substance
                       satisfactory  to Lender,  together with any and all other
                       documents  necessary or  appropriate  to effect  Lender's
                       security interest therein.

             16. Costs and  Expenses.  Borrower  agrees to reimburse  Lender for
Lender's  costs  and  expenses,   including,  but  not  limited  to,  reasonable
attorneys'  fees and legal  expenses,  incurred by Lender in connection with the
preparation  of this  Amendment  and in  connection  with  the  negotiation  and
consummation of the transaction contemplated hereby.

             17. The Credit Agreement. All references to the Credit Agreement in
the Loan  Documents  shall be deemed to be the  Credit  Agreement,  as  modified
hereby.  Borrower expressly promises to perform all of its obligations under the
Credit Agreement and other Loan Documents, as modified by this Amendment.

             18.  Acknowledgments of Borrower and Ultimate Parent.  Borrower and
Ultimate  Parent  each  hereby  acknowledge  and agree that (a) Lender is not in
default in the  performance of its  obligations  under the Loan  Documents;  (b)
Borrower and Ultimate Parent have no claims, counterclaims,  offsets, credits or
defenses  to  the  Loan  Documents  and  the  performance  of  their  respective
obligations thereunder,  or if Borrower or Ultimate Parent have any such claims,
counterclaims,  offsets,  credits  or  defenses  to the  Loan  Documents  or any
transaction  related  to the Loans  and/or the Loan  Documents,  same are hereby
waived,  relinquished and released in  consideration  of Lender's  execution and
delivery of this  Amendment;  (c) all of the  provisions of the Loan  Documents,
except  as  amended  hereby,  are in full  force  and  effect;  and (d) upon the
execution hereof, the Credit Agreement, the Notes, and the other Loan Documents,
as amended herein, are not in default by Borrower or Ultimate Parent.

             19. Full Force and Effect. Except as expressly modified and amended
in this  Amendment,  all of the terms,  provisions  and conditions of the Credit
Agreement,  the Notes, and all other Loan Documents are and shall remain in full
force and effect and are incorporated herein by reference.

             20.  Counterparts and Facsimile  Signatures.  This Amendment may be
executed in any number of  counterparts  and by the  parties  hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original,  and all of which taken together  shall  constitute but one and the
same  instrument.  Any party to this  Amendment may indicate its intention to be
bound by this  Amendment by its signature to the  signature  page hereof

<PAGE>

and the  delivery  of the  signature  page  hereof  to the  other  party  or its
representatives by facsimile transmission or telecopy. The delivery of a party's
signature  page on the  signature  page  hereof  by  facsimile  transmission  or
telecopy  shall  have the same  force and  effect as if such  party  signed  and
delivered this Amendment in person.

             21. No Oral Agreements. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS
EMBODY  THE  ENTIRE  AGREEMENT  AMONG  THE  PARTIES  AND  SUPERSEDES  ALL  PRIOR
AGREEMENTS AND  UNDERSTANDINGS,  IF ANY,  RELATING TO THE SUBJECT MATTER HEREOF.
THIS WRITTEN AMENDMENT  REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES AND MAY
NOT BE  CONTRADICTED  BY EVIDENCE OF PRIOR,  CONTEMPORANEOUS  OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES.

  [This space intentionally left blank. The next page is the signature page.]

<PAGE>

            IN WITNESS WHEREOF,  the parties have executed this Second Amendment
to Credit Agreement as of the day and year first above written.

                                     LENDER:

                                     THE CHASE MANHATTAN BANK, formerly
                                     known as CHASE BANK OF TEXAS, N.A.,
                                     a New York state banking association

                                     By:
                                           Joanne Bramanti, Vice President

                                     BORROWER:

                                    TIDEL ENGINEERING, L.P.,
                                    a Delaware limited partnership

                                    By:   Tidel Cash Systems, Inc., its sole
                                          general partner

                                          By:
                                             Mark K. Levenick,
                                             President and Chief
                                             Executive Officer

                                    ULTIMATE PARENT:

                                    TIDEL TECHNOLOGIES, INC.,
                                    a Delaware corporation

                                    By:
                                       James T. Rash, Chief Executive Officer

<PAGE>

            By its execution below, each of Tidel Technologies, Inc., a Delaware
corporation,  Tidel  Services  Inc.,  a  Delaware  corporation,  and Tidel  Cash
Systems,  Inc.,  a Delaware  corporation  (each  individually,  a  "Guarantor"),
acknowledges  and consents to all of the terms and conditions of this Amendment,
and  ratifies and  confirms  its  respective  Guaranty to and for the benefit of
Lender.  Each  Guarantor   acknowledges  that  such  Guarantor  has  no  claims,
counterclaims,  offsets,  credits  or  defenses  to the Loan  Documents  and the
performance of its  obligations  thereunder,  or if such Guarantor does have any
such claims,  counterclaims,  offsets, credits or defenses to the Loan Documents
or any  transaction  related to the Loans  and/or the Loan  Documents,  same are
hereby waived,  relinquished and released in consideration of Lender's execution
and delivery of this  Amendment.  Further,  each  Guarantor  agrees that nothing
contained in this Amendment shall adversely affect any right or remedy of Lender
under its  respective  Guaranty  and that with  respect  to such  Guaranty,  all
references in such Guaranty to the "Obligations"  shall mean the  "Obligations",
as amended by this Amendment;  that the execution and delivery of this Amendment
shall in no way  change or modify  such  Guarantor's  obligations  as  Guarantor
pursuant to its Guaranty;  and that the execution and delivery of any agreements
by Borrower and Lender in connection  with this Amendment shall not constitute a
waiver by Lender of any of Lender's rights against any Guarantor.

                                         TIDEL TECHNOLOGIES, INC.,
                                         a Delaware corporation

                                         By:
                                             James T. Rash,
                                             Chief Executive Officer

                                         TIDEL SERVICES, INC.,
                                         a Delaware corporation

                                         By:___________________________________
                                            Mark K. Levenick, President

                                         TIDEL CASH SYSTEMS, INC.,
                                         a Delaware corporation

                                         By:__________________________________
                                            Mark K. Levenick, President

<PAGE>

                                    EXHIBIT D

                             COMPLIANCE CERTIFICATE

                              Date: _______________

Chase Bank of Texas, N.A.
P.O. Box 660197
Dallas, Texas  75266-0197
Attention:  Ms. Joanne Bramanti

            Re:  Financial  Statements  Required  under Credit  Agreement
                 (as the same may have been amended,  modified and restated from
                 time to time,  the  "Credit  Agreement")  dated as of April 1,
                 1999,  by and  between  Tidel  Engineering,  L.P.,  Tidel
                 Technologies, Inc. and Chase Bank of Texas, N.A., ("Lender")

Gentlemen:

            Capitalized  words and phrases used herein and not defined herein in
the Credit  Agreement  are used herein with the same meanings as are assigned to
them in the Credit Agreement.

            The  undersigned  hereby  certifies,  warrants and represents to the
addressee named above that to the best knowledge of the undersigned:

            (1)   He or she is a duly appointed and acting  Responsible  Officer
                  of the General Partner of the Borrower;

            (2)   The attached financial  statements dated as of _______________
                  were prepared in conformity  with GAAP  consistently  applied,
                  subject only to normal and customary adjustments,  and present
                  fairly the financial  position of [the Ultimate  Parent],  the
                  Borrower  and  its   Subsidiaries,   on  a  Consolidated  [and
                  consolidating  basis], as of the date there of and the results
                  of [its] [their] operations for the period covered thereby.

            (3)   The following  constitute true, correct and complete financial
                  calculations   for  the  Borrower  and,  as  applicable,   its
                  Subsidiaries  on a  Consolidated  basis,  as of the end of the
                  period(s) indicated:

                  (a)   INTEREST  COVERAGE  RATIO (for the four (4)  immediately
                        preceding fiscal quarters ending on or immediately prior
                        to today's date):

                        (i)                                              EBITDA:

<PAGE>

                                                                     $__________

                        (ii)                               Capital Expenditures:
                                                                     $__________

                        (iii)                         [Line (i) less Line (ii)]:
                                                                     $__________

                        (iv)                              Cash Interest Expense:
                                                                     $__________

                        (v)                       Actual Interest Coverage Ratio
                                                       [ratio of (iii) to (iv)]:
                                                                   _____ to 1:00

                        (vi)                   Required Interest Coverage Ratio:
                                                                    3:00 to 1:00

                  (b)                                         TANGIBLE NET WORTH
                        (for the calendar month ending on or
                        immediately prior to today's date)

                        (i)   minimum  required  Tangible  Net  Worth of Tidel
                              Engineering, L.P. as of October 1, 1998:
                                                                     $14,000,000

                        (ii)  the  amount  on  a  cumulative
                              basis,   beginning   with  the
                              calendar    month    beginning
                              October 1, 1998 and continuing
                              each calendar month thereafter
                              through   the   term  of  this
                              Agreement,  that is  equal  to
                              the     sequential     monthly
                              calculations  of fifty percent
                              (50%) of the positive (but not
                              the  negative)  net  income of
                              the Borrower for each calendar
                              month  beginning  on and after
                              October   1,  1998  (it  being
                              acknowledged     that     such
                              calculations    for   calendar
                              months  prior to April 1, 1999
                              shall be made with  respect to
                              Tidel  Engineering,  Inc., the
                              predecessor-in-interest to the
                              Borrower):

                                                 $----------
<PAGE>

                        (iii) the  amount  of  all   capital
                              contributions  to  Borrower on
                              or after  October  1, 1998 (it
                              being  acknowledged  that such
                              calculations    for   calendar
                              months  prior to April 1, 1999
                              shall be made with  respect to
                              Tidel  Engineering,  Inc., the
                              predecessor-in-interest to the
                              Borrower,  and  shall  be made
                              with  respect to the amount of
                              consideration    received   in
                              exchange for equity  interests
                              issued  by Tidel  Engineering,
                              Inc.   during  the  applicable
                              period of time):

                                                $----------

                        (iv)  Required  Tangible  Net  Worth
                              (Sum of  Lines  (i),  (ii) and
                              (iii)):
                                                 $----------

                        (v)                                               Actual
                              Tangible Net Worth:                    $__________

                 (c)                               CAPITAL EXPENDITURES (for the
                                                           present fiscal year):

                              (i)         Cumulative fiscal year-to-date Capital
                                                             Expenditures total:
                              $__________

                              (ii)                   Maximum permitted amount of
                                                 Capital Expenditures during any
                                                                    fiscal year:
                              $1,300,000

                 (d)                             CASH FLOW  LEVERAGE  RATIO (for
                                       the four (4) immediately preceding fiscal
                                      quarters ending on or immediately prior to
                                                                  today's date):

                              (i)             Obligations under Credit Agreement
                              $__________

                              (ii)                Indebtedness under Convertible
                                                          Subordinated Debenture
                              $__________

<PAGE>

                              (iii)         Total Debt [Line (i) plus Line (ii)]
                              $__________

                              (iv)                                        EBITDA
                              $__________

                              (v)                Actual Cash Flow Leverage Ratio
                                                        [ratio of (iii) to (iv)]
                              ____ to 1:00

                              (vi)                       Maximum permitted Ratio
                              2:00  to  1:00

            (4)      The  undersigned  hereby  certifies  to  his  or  her  best
knowledge as follows:

                (a)  each   representation  or  warranty  of  the  Borrower  and
                     Ultimate Parent  contained in the Credit  Agreement is true
                     and correct in all material  respects on and as of the date
                     hereof with the same effect as through such representations
                     and  warranties  had been made on and of this date,  except
                     for (i) those  representations  and warranties which relate
                     only  to the  Closing  Date  or (ii)  such  changes  in the
                     representations  and warranties  otherwise permitted by the
                     terms of the Credit Agreement;

                (b)  no Event of Default or Default  under the Credit  Agreement
                     has occurred and is still continuing  (except for any Event
                     of Default or Default which may have been expressly  waived
                     in writing by the Lender); and

                (c)  neither  Borrower nor Ultimate  Parent is in default in the
                     due  performance  of any covenant on its part in the Credit
                     Agreement.

                                   Name:_____________________________________
<PAGE>

                                    EXHIBIT H
                                       TO
                                CREDIT AGREEMENT
             ACCOUNTS AND INVENTORY RAW MATERIALS & FINISHED GOODS)

                           BORROWING BASE CERTIFICATE

                   Borrowing Base for Tidel Engineering, L.P.
            Week Beginning ______ and Ending _____ ("Current Period")
       Credit Agreement (the "Agreement") dated April 1, 1999, executed by
     Tidel Engineering, L.P. and Tidel Technologies, Inc., and delivered to
                    Chase Bank of Texas, N.A. (the "Lender")
                                  as amended by
                                 First Amendment
                                       and
                                Second Amendment

Line
      1        Total Accounts as of the end of the last report                 $
      2        Plus:  Sales during the Current Period                          $
      3        Less:  Collections during Current Period                        $
      4        Plus or Minus:  Any debits or credits during Current Period     $
      5        Total Accounts as of the end of the Current Period
               Ineligible Accounts as of the end of the Current Period:        $
      6        (a)   Total invoices more than 90 days from
                     invoice date for all Accounts                    $
      7        (b)   All of the Accounts of the Account Debtor(s)
                     when 20% of the Accounts of the Account
                     Debtor(s)  are more than 90 days from  invoice
                     date net of the amount included in Line 6(a)
                     for the Account Debtor(s)                        $
      8        (c)   That portion of Accounts of Credit Card Center
                     in excess of 20% of the total Accounts for the
                     Current Period (Line 1)                          $
      9        (d)   That portion of Accounts of Card Pro, Inc.
                     Cardtronics in excess of 15% of the total
                     Accounts for the Current Period (Line 1)         $
     10        (e)   That portion of Accounts of Account Debtor(s)
                     (other than Credit Card Center and Card Pro,
                     Inc./Cardtronics) in excess of 10% of the
                     total Accounts for the Current Period (Line 1)   $
     11        (d)   Progress Billings                                $
     12        (e)   Bill and Holds not properly documented           $
     13        (f)   Inter-company and Affiliate Accounts             $
     14        (g)   Government Accounts                              $
     15        (h)   Foreign Accounts (unless secured by a letter
                     of credit issued by a bank satisfactory to
                     the Lender)                                      $
     16        (i)   Accounts subject to any dispute or setoff or
                     contra account                                   $
     17        (j)   Cash/COD Accounts                                $
     18        (k)   Past Due Credits (added as a positive figure)    $
     19        (l)   Unapplied Cash                                   $
     20        (m)   Other Ineligible Accounts                        $
     21              Total Ineligible Accounts as of the end of the
                     Current Period                                            $
                     (Add Lines 6 through 20)                                  $
     22        Total Eligible Accounts as of the end of the
               Current Period                                                  $
               (Line 5-Line 20)                                                $
     23        Multiplied By:  Accounts Advance Factor                       80%

<PAGE>

     24        Equals:  Accounts Receivable Availability                       $
     25        Total Inventory as of the end of the Current Period
     26        Gross Raw Materials Inventory
               Ineligible Raw Materials Inventory
     27        (a)   Raw Materials Off-site (Sub-Contracted)          $
     28        (b)   Inventory Reserve Applicable to Raw Materials    $
     29              Total Ineligible Raw Materials                           $
     30              Total Eligible Raw Materials Inventory                   $
     31              Multiplied by:  Advance Rate on Raw Materials          50%
     32        Equals:  Availability on Raw Materials Inventory               $
     33        Gross Finished Goods Inventory                                 $
               Ineligible Finished Goods Inventory
     34        (a)   Inventory Reserve Applicable to
                     Finished Goods                                   $
                                                                      ----
     35        (b)   MPD Model ATMs                                   $
     36        (c)   AnyCard II Model ATM's                           $
     37              Total Ineligible Finished Goods                          $
     38              Total Eligible Finished Goods Inventory                  $
     39              Advance Rate on Finished Goods Inventory               50%
     40        Equals:  Availability on Finished Goods Inventory
               (not to exceed 35% of Line 32)                                 $
     41        Gross Other Inventory                                          $
               Ineligible Other Inventory
     42        (a)   Work in Process                                  $
     43        (b)   Demo Units                                       $
     44        (c)   Non-Current Production                           $
     45        (d)   Inventory Reserve Applicable
                     to Eligible Other Inventory                              $
     46              Total Ineligible Other Inventory                         $
                                                                              --
     47              Total Eligible Other Inventory                           $
     48              Multiplied by:  Advance Rate on Other Inventory         50%
     49        Equals:  Availability on Other Inventory                      $
     50        Total Gross Inventory Availability
               (Line 32 + Line 40 + Line 49) (Not to
               exceed $ $2,500,000.00)
                                                                             $
     51        Total Borrowing Base Availability (Not to
               exceed $7,000,000.00) as of the End of the Current Period
               (Line 24 + Line 50)                                           $
     52        Less:  Aggregate principal amount outstanding
               under the Revolving Note as of the end of the Current
               Period                                                        $
     53        Equals:  Amount available for borrowing subject
               to the terms of the Agreement, if positive; or                $
               amount due to Lender, if negative

The term  "Accounts" and "Inventory"  shall have the respective  meanings as set
forth in the Texas  Business and  Commerce  Code in effect as of the date of the
Agreement.  Inventory shall be valued at the lesser of: (a) market value and (b)
cost. "Other  Ineligible  Accounts" shall mean all such Accounts of the Borrower
that are not  subject  to a first and prior lien in favor of the  Lender,  those
Accounts that are subject to any Lien not in favor of Lender and those  Accounts
of Borrower as shall be deemed from time to time to be, in the sole  judgment of
the Lender,  ineligible  for the purposes of  determining  the  Borrowing  Base.
"Other Ineligible Inventory" means that Inventory of Borrower as shall be deemed
from  time to time to be in the sole  judgment  of the  Lender,  ineligible  for
purposes of determining  the Borrowing  Base. All other terms not defined herein
shall have the respective meanings as in the Agreement.

<PAGE>

The undersigned hereby certifies that the above information and computations are
true and correct and not misleading as of the date hereof.

COMPANY NAME:     Tidel Engineering, L.P.                 DATE:

                  By:   Tidel Cash Systems, Inc.,
                          General Partner

SIGNATURE:              By:
NAME:
TITLE:
ADDRESS:                5847 San Felipe
                        Suite 900
                        Houston, Texas 77057

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