Document:

<PAGE>
                                                                    EXHIBIT 4.07

                       SIXTH AMENDMENT TO CREDIT AGREEMENT
                                       AND
                                WAIVER AGREEMENT

         This Sixth Amendment to Credit Agreement and Waiver Agreement (this
"Amendment") is made and entered into as of December __, 2001, by and among JP
MORGAN CHASE BANK, a New York state banking association, 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").

                                    RECITALS:

         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,
that certain Second Amendment to Credit Agreement, effective as of September 8,
2000; that certain Third Amendment to Credit Agreement, effective as of
September 8, 2000; that certain Fourth Amendment to Credit Agreement, effective
as of November 28, 2000; and that certain Fifth Amendment to Credit Agreement
and Forbearance Agreement, effective as of June 1, 2001.

         B. The Loans are evidenced by that certain Revolving Credit Note dated
November 28, 2000 in the stated principal amount of $10,000,000.00, 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 amend the
Credit Agreement to provide for various modifications, including without
limitation, the following:

                  (1) modifications to the financial covenants set forth in the
         Credit Agreement, including deletion of the covenant pertaining to the
         Cash Flow Leverage Ratio;

                  (2) modifications to the Borrowing Base, including modifying
         the concentration limits on receivables from CardPro, Inc., aka
         CardTronics, modifying the limitations on Eligible Inventory, and
         removing receivables of Credit Card Center from eligibility; and

                  (3) reducing the Revolving Commitment from $10,000,000 to
         $7,000,000.

         D. 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 amendments and the modifications to the Credit Agreement, as requested by
Borrower and Ultimate Parent.

SIXTH AMENDMENT - Page 1

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         E. Various Events of Default also have occurred under the Credit
Agreement for the quarterly reporting periods ended June 31, 2001 and September
30, 2001 (the "Specific Events of Default").

         F. Borrower and Ultimate Parent also have requested that Lender waive
the Specific Events of Default.

         G. Lender has agreed to waive the Specific Events of Default, subject
to the terms and conditions of this Amendment.

                                   AGREEMENT:

         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
agree to the Recitals stated above and further 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. Borrowing Base. Clause (b) of the definition of "Borrowing Base" in
Section 1.1 of the Credit Agreement is hereby amended to read in its entirety as
follows:

            "(b) the lesser of

                 (i)  fifty percent (50%) of the Eligible Inventory, or

                 (ii) Three Million Five Hundred Thousand Dollars ($3,500,000)."

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

         " (d) the total Receivables owing to the Borrower by the applicable
         account debtor constitute 10% or less of the aggregate Receivables
         owing to the Borrower by all account debtors, or if the total
         Receivables of the applicable account debtor (other than Western States
         ATM, in which case 15%, and CardPro, Inc./CardTronics, in which case
         25%) exceed 10% of the aggregate of all Receivables owing to the
         Borrower and its Subsidiaries by all account debtors, the Receivables
         of the applicable account debtor up to such respective percentage limit
         shall be deemed to constitute Eligible Receivables (subject to
         compliance with all other applicable standards of eligibility) and the
         Receivables of the applicable account debtor exceeding such respective
         percentage limit shall be included within Eligible Receivables (subject
         to compliance with all other applicable standards of eligibility) only
         if the Receivables exceeding such respective percentage limit are
         backed or secured by credit insurance reasonably satisfactory to the

SIXTH AMENDMENT - Page 2

<PAGE>

         Lender in all respects and such credit insurance has been assigned to
         the Lender upon terms reasonably acceptable to the Lender in its
         discretion;".

         4. Receivables of Credit Card Center. The definition of "Eligible
Receivables" in Section 1.1 of the Credit Agreement is hereby amended to add
clause (s) as follows, so as to exclude Receivables of Credit Card Center from
the calculation of Eligible Receivables:

            "(s) the applicable account debtor is not Credit Card Center."

         5. Interest Coverage Ratio. The definition of "Interest Coverage Ratio"
in Section 1.1 of the Credit Agreement is hereby amended to read in its entirety
as follows:

                  "Interest Coverage Ratio shall mean, as of any date that the
         Interest Coverage Ratio is calculated, the ratio of (a) the remainder
         of (i) EBITDA of the Borrower, minus (ii) Capital Expenditures of the
         Borrower, to (b) cash Interest Expense, measured fiscal year-to-date as
         of the date of determination of the Interest Coverage Ratio."

         6. Revolving Commitment. The definition of "Revolving Commitment" in
Section 1.1 of the Credit Agreement is hereby amended to read in its entirety as
follows:

                  "Revolving Commitment shall mean the obligation of the Lender
         to make Revolving Loans and incur liability for the Letter of Credit
         Exposure Amount in an aggregate principal amount at any one time
         outstanding up to, but not exceeding, Seven Million Dollars
         ($7,000,000) (as the same may be reduced from time to time pursuant to
         Section 2.4 hereof)."

         7. Interest Coverage Ratio. Section 8.11 of the Credit Agreement is
hereby amended to read in its entirety as follows:

                  "8.11 Interest Coverage Ratio. Permit the Interest Coverage
         Ratio of the Borrower (expressly excluding Ultimate Parent, its
         Subsidiaries, and Borrower's subsidiaries to be less the 1.00 to 1.00
         for the fiscal quarter ending December 31, 2001, or thereafter, permit
         the Interest Coverage Ratio of the Borrower (expressly excluding
         Ultimate Parent, its Subsidiaries and Borrower's Subsidiaries) to be
         less than 3.00 to 1.00. The Interest Coverage Ratio will be measured as
         of the last day of each [quarter] for the Borrower's fiscal
         year-to-date as of the end of such month."

         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 $12,000,000.00."

SIXTH AMENDMENT - Page 3
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         9. Capital Expenditures. Section 8.13 of the Credit Agreement is hereby
amended to read in its entirety as follows:

            "8.13 Capital Expenditures. Make, directly or indirectly, Capital
         Expenditures other than those expenditures which do not exceed (a)
         Forty Thousand Dollars ($40,000) in any fiscal quarter, or (b) One
         Hundred Sixty Thousand Dollars ($160,000) in any fiscal year."

         10. Cash Flow Leverage. Section 8.19 of the Credit Agreement, which
provided for the negative covenant pertaining to the Cash Flow Leverage Ratio,
is hereby deleted in its entirety.

         11. Compliance Certificate. Exhibit D to the Credit Agreement, the form
of Compliance Certificate, is hereby amended to read in its entirety as set
forth on Exhibit D attached hereto.

         12. Borrowing Base Certificate. Exhibit H to the Credit Agreement, the
form of Borrowing Base Certificate, is hereby is hereby amended to read in its
entirety as set forth on Exhibit H attached hereto.

         13. Conditions Precedent to Consent to Amendment. The effectiveness of
this Amendment 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 material 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 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 is covered by the forbearance provisions set forth
                    in Section 5, below, or has been specifically waived in
                    writing by Lender; and

             (3)    Lender shall have received evidence reasonably satisfactory
                    to Lender that the increase in the Revolving Commitment has
                    been duly approved by Borrower, Ultimate Parent, and the
                    Other Guarantors.

         14. Waiver. Subject to the terms and conditions set forth in this
Amendment and Borrower's and Guarantors' acknowledgments and agreements set
forth above, and expressly conditioned upon the absence of any additional Events
of Default, Lender waives the Events of Default occurring as a result of the
Specific Events of Default. This waiver specifically excludes any occurrence of
any Event of Default other than the Specific Event of Default or any
re-occurrence of the Specific Event of Default after the date of this Amendment.

SIXTH AMENDMENT - Page 4
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         15. 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.

         16. 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.

         17. 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.

         18. 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.

         19. 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 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.

         20. 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.

SIXTH AMENDMENT - Page 5
<PAGE>

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

                                     LENDER:

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

                                     By:
                                        ----------------------------------------
                                     Name:
                                          --------------------------------------
                                     Title:
                                           -------------------------------------

                                    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

SIXTH AMENDMENT - Page 6
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         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

SIXTH AMENDMENT - Page 7<PAGE>
                                                                   EXHIBIT 10.14

                              EMPLOYMENT AGREEMENT

         This Employee Agreement ("Agreement") is entered into effective as of
the 1st day of January, 2000 by and between TIDEL ENGINEERING, L.P., a Delaware
limited partnership with its principal offices at Carrollton, Dallas County,
Texas ("Company"), and ________________ ("Employee").

         WHEREAS, Company desires to continue to have the benefits of Employee's
knowledge and experience as a full time senior executive without distraction by
employment-related uncertainties and considers such employment a vital element
to protecting and enhancing the best interests of Company, and its and
shareholder and Employee desires to continue to be employed full time with
Company and to extend his employment agreement from that presently provided; and

         WHEREAS, Company and Employee desire to enter into an agreement
reflecting the terms under which Employee will be employed by Company for a
minimum THREE (3) YEAR PERIOD commencing on the Effective Date (subject to the
provision of SECTIONS 5, 6 and 7 below);

         WHEREAS, Employee is employed hereunder by Company in a confidential
relationship wherein Employee, in the course of Employee's employment with the
Company, has and will continue to become familiar with and aware of information
as to customers of the Company, and Tidel Technologies, Inc. (formerly known as
American Medical Technologies, Inc. doing business as AMT Industries, Inc.)
("TTI"), specific manner of doing business, including the processes, techniques
and trade secrets utilized by the Company and TTI, and future plans with respect
thereto, all of which has been and will be established and maintained at great
expense to the Company and TTI; this information is a trade secret and
constituted the valuable good will of the Company and TTI.

         NOW, THEREFORE, in consideration of the mutual covenants set forth
herein and other good and valuable consideration, the parties agree as follows:

         1. TERM. Company hereby agrees to employ Employee for an initial
three-year period commencing on January 1, 2000 (the "Effective Date") and
ending on the third anniversary thereof, unless sooner terminated as provided in
SECTIONS 5 and 6 or unless extended by the mutual consent of the parties prior
to the end of the term. On the Effective Date anniversary of every year, the
term of the Employee's employment with Company shall be automatically extended
by one year, on the same terms and conditions contained herein in effect as of
the time of renewal unless either party hereto delivers to the other party not
later than ten months after the anniversary of the Effective Date during the
first year of the then-current term a written notice of its or his election to
terminate the Employee's employment. If either party delivers such termination
notice, the Employee's employment will terminate as of the end of the
then-current three-year term.

         2. DUTIES. Employee shall serve as the ______________________________
of Company, shall exercise the authority and assume the responsibilities of
_________________________________ of a company of the size and nature of
Company, and shall

<PAGE>

assume such other duties as the Board of Directors of Company may prescribe
consistent with duties of _________________________________ of a technology
company of such size as Company including without limitation such positions and
duties with Company's subsidiaries as assigned by the Board of Directors of
Company. Employee agrees to devote substantially all his full time, attention
and best efforts to the performance of his duties. The Company may from time to
time designate Employee as an officer of any current or future subsidiary and,
in such event, shall use its best efforts to fairly allocate Employee's
compensation among itself and such subsidiary or subsidiaries either through
multiple direct payroll checks to Employee or by inter-Company reimbursements,
in any case consistent with any applicable regulations or regulatory policies.

         3. COMPENSATION. Company shall compensate Employee for the services
rendered under this Agreement as follows:

                  (a) A base annual salary determined by the Board of Directors
         of Company consistent with its practices for executive officers of
         Company, but not less than _______________________________________
         ($_______) per year, payable in equal monthly installments (less
         applicable withholding) in accordance with the customary payroll
         practices of Company for the payment of executive officers;

                  (b) Such bonuses as shall be determined by the Board of
         Directors of Company consistent with its practices for executive
         officers of Company;

                  (c) If Employee's base annual salary is increased at any time,
         it shall, not thereafter be decreased during the term of this
         Agreement, unless such decrease is agreed to by the a Employee in
         writing; and

                  (d) The Board of Directors of Company or its parent Company,
         TTI, may from time to time grant restricted stock, performance units or
         stock options, stock appreciation rights, and other forms of long-term
         incentive compensation arrangements to the Employee. The privilege to
         participate in these grants is at the discretion of the Board of
         Directors and the stipulations regarding the granting of these awards
         and their exercise by the Employee will be defined in the Tidel
         Technologies, Inc. 1997 Long-Term Incentive Plan or in other plans or
         actions of the Board of Directors.

                  (e) Employee shall be entitled to reimbursement of reasonable
         out of pocket expenses relating to Company business in accordance with
         policies in effect for executive officers generally.

         4. EMPLOYEE BENEFITS.

                  (a) Employee shall be entitled to full participation, on a
         basis commensurate with his position with Company, in all plans of
         life, accident, medical payment, health and disability insurance,
         retirement, pension, perquisites, and other employee benefit and
         pension plans which generally are made available to executive officers
         of Company or its principal

                                       2
<PAGE>

         subsidiaries, except for such plans which the Board of Directors, in
         its sole discretion, shall adopt for select employees to compensate
         them for special or extenuating circumstances.

                  (b) Employee shall be entitled to an annual vacation leave at
         full pay as may be provided or by Company's vacation policies
         applicable to executive officers, but in any event such paid vacation
         shall not be less than two weeks in the aggregate.

                  (c) Employee shall be entitled to an automobile and/or an
         automobile allowance as may be determined by the Board of Directors.
         Once established, or if Employee's automobile allowance is increased at
         any time, it shall not thereafter be decreased during the term of this
         Agreement, unless such decrease is agreed to by the Employee in
         writing.

                  (d) Nothing in this Agreement shall limit in any way
         Employee's participation in any other benefit plans or arrangements as
         are from time to time approved by Company.

         5. TERMINATION BY COMPANY. Except for a termination pursuant to SECTION
1 upon the expiration of the scheduled initial or any other term of this
Agreement, Employee's employment hereunder may be terminated by Company without
any breach of this Agreement only under the following circumstances:

                  (a) Death, or Retirement. Employee's employment shall
         terminate upon his death or retirement.

                  (b) Disability. If, as a result of his incapacity resulting
         from physical or mental illness or disease which is likely to be
         permanent, Employee shall have been unable to perform his duties
         hereunder for a period of more than one hundred twenty (120)
         consecutive days during any twelve-month period, Company may terminate
         his employment hereunder. The Board of Directors will determine if the
         Employee's termination is due to total and permanent disability,
         according to any long-term disability plan then in effect for senior
         executives of Company and otherwise in good faith consistent with
         generally prevailing practices of employers.

                  (c) Cause. Company may terminate Employee's employment
         hereunder for cause, which for purposes of this Agreement shall be
         defined to mean (i) the willful and continued failure by Employee to
         follow the reasonable instructions of the Board of Directors of Company
         or his duties pursuant to this Agreement continuing for ten (10) days
         after written notice of such failure has been given to Employee by the
         Board of Directors and the failure of the Employee to cure, (ii) the
         willful commission by Employee of acts that are dishonest or
         inconsistent with local normal standards and demonstrably and
         materially injurious to Company or its subsidiaries, monetarily or
         otherwise, (iii) the commission by Employee of a felonious act, (iv)
         ongoing alcohol/drug addiction and a failure by Employee to
         successfully complete a recovery program, (v) intentional wrongful
         disclosure of confidential information of the Company, (vi) intentional
         wrongful engagement in any competitive activity, or (vii) gross neglect
         of his duties by Employee.

                                       3
<PAGE>

                  (d) Termination Without Cause. The termination of Employee's
         employment by Company for any reasons other than those specified above
         shall be deemed to be a "Termination Without Cause" (and the Company
         shall be deemed to have "Terminated Without Cause") and Employee shall
         be entitled to the severance benefits described in SECTION 8 herein.
         Notwithstanding the foregoing, the Company shall not Terminate Without
         Cause the Employee's employment after a Change of Control (as defined
         in SECTION 7(B)) until the end of the then-current term of the
         Agreement.

         No breach or default by Employee shall be deemed to have occurred
hereunder unless written notice thereof shall have been given by Company to
Employee.

         Upon termination of this Agreement for any reason provided above,
Employee shall be entitled to receive all compensation earned and all benefits
and reimbursements due through the effective date of termination. Additional
compensation subsequent to termination, if any, will be due and payable to
Employee only to the extent and in the manner expressly provided above. All
other rights and obligations of TTI, the Company and Employee under this
Agreement shall cease as of the effective date of termination. except that
Employee's obligations under SECTIONS 13, 14, 15 and 16 herein shall survive
such termination in accordance with their terms.

         If termination of Employee's employment arises out of the Company's
failure to pay Employee on a timely basis the amounts to which Employee is
entitled under this Agreement or as a result of any other breach of this
Agreement by the Company, as determined by a court of competent jurisdiction or
pursuant to the provisions of SECTION 17 below, the Company shall pay all
amounts and damages to which Employee may be entitled as a result of such breach
and all reasonable legal fees and expenses and other costs incurred by Employee
to enforce Employee's rights hereunder.

         6. TERMINATION BY EMPLOYEE. Employee shall be entitled to terminate his
employment (i) for Good Reason or (ii) pursuant to the provisions contained in
SECTION 1 hereof. Termination for "Good Reason" is defined as Employee's
resignation except in connection with his termination pursuant to SECTION 5,
within NINETY (90) DAYS of the following:

                  (a) Without the express written consent of Employee, the
         Company assigns the Employee any duties that are materially
         inconsistent with Employee's position, duties and status with Company
         as contemplated by this Agreement; (a)

                  (b) Any action by Company results in a material diminution in
         the position, duties or status of Employee with Company as contemplated
         by this Agreement or the Company transfers or proposes a transfer of
         Employee for any extended period to a location outside Dallas County,
         Texas without his consent;

                  (c) The base annual salary of Employee, as the same may
         hereafter be increased from time to time, is reduced;

                                       4
<PAGE>

                  (d) Without limiting the generality or effect of the
         foregoing, Company fails to materially comply with any of its
         obligations hereunder; or

                  (e) The Company's Compensation Committee fails to communicate
         the compensation objectives required within the Executive Annual
         Incentive Plan or subsequent plan, approved by the Board, if any,
         within the first 90 days of any fiscal year.

         Termination by Employee of his employment with Company pursuant to
clause (i) of the first sentence of this Section 6 shall be deemed to be
Termination Without Cause of Employee's employment by Company.

7. RIGHTS AFTER CHANGE OF CONTROL.

                  (a) If a Change of Control (as defined in SECTION 7(b) below)
         occurs, (i) Employee shall have immediate vesting of all restricted
         stock, performance units, stock options, stock appreciation rights or
         warrants (whether related to Company common stock or TTI common stock)
         granted to Employee and full vesting in all other employee benefit
         plans and compensation plans to the maximum extent permitted under
         applicable law, and (ii) Employee shall have the right to "put" all or
         any portion of vested restricted stock, performance units, stock
         options, stock appreciation rights or warrants to TTI or in the event
         TTI no longer exists or is unable or fails to fulfill its obligations
         pursuant to this SECTION 7(a) within thirty (30) days of Employee's
         exercise of his "put" rights then to Company for the difference between
         (i) (A) the stock option exercise price with respect to stock options
         and stock appreciation rights, (B) warrant exercise price with respect
         to warrants, or (C) common stock price with respect to restricted stock
         or performance units, and (ii) the higher of the market price of
         Company's or TTI's common stock, as the case may be, at the date of the
         "put" or the "Sales Price." Sales Price is defined solely for purposes
         of this section as (i) the aggregate consideration per share received
         by the Company or its shareholder(s) (currently TTI) for the Company's
         common stock in the transaction which resulted in a Change of Control
         in the event it is Company's common stock subject to a stock option,
         stock appreciation right, warrant, restricted stock or performance unit
         or (ii) the Market Price of TTI stock as of the date of the closing of
         the transaction which will result in a Change of Control in the event
         it is TTI's common stock subject to the stock option, stock
         appreciation right, warrant, restricted stock or performance unit.
         Employee's right to "put" vested restricted stock, performance units,
         stock options, stock appreciation rights or warrants to Company shall
         exist for the period ending on the earlier of (i) six (6) months from
         the date of the Change of Control, (ii) the termination of this
         Agreement, or (iii) Employee's termination pursuant to SECTION 5.

                  (b) For the purposes of this Agreement, a "Change of Control"
         of Company shall be deemed to have taken place if one or more of the
         following occurs:

                                       5
<PAGE>

                           (i) Any person or other entity, as that term is used
                  in Section 13(d) and 14(d)(2) of the Securities Exchange Act
                  of 1934, ("Exchange Act") (other than a qualified benefit or
                  retirement plan of Company or an affiliate of Company) becomes
                  directly or indirectly, the beneficial owner (as defined in
                  Rule 13(d) under the Exchange Act as in effect on the date
                  hereof) of securities of Company representing fifty percent
                  (50%) or more of the combined voting power of Company's then
                  outstanding securities (unless such person is known by
                  Employee to be already such beneficial owner on the date of
                  this Agreement);

                           (ii) during any period of two (2) consecutive years
                  or less, individuals who at the beginning of such period
                  constituted the Board of the Company cease, for any reason, to
                  constitute at least a majority of the Board, unless the
                  election or nomination for election of each new member of the
                  Board was approved by a vote of at least two-thirds of the
                  members of the Board then still in office who were members of
                  the Board at the beginning of the period;

                           (iii) the equityholders of the Company approve any
                  merger or consolidation to which the Company is a party as a
                  result of which the persons who were equityholders of the
                  Company immediately prior to the effective date of the merger
                  or consolidation (and excluding, however, any shares held by
                  any party to such merger or consolidation and their
                  affiliates) shall have beneficial ownership of less than fifty
                  percent, (50%) of the combined voting power for election of
                  members of the Board (or equivalent) of the surviving entity
                  following the effective date of such merger or consolidation;
                  or

                           (iv) the equityholders of the Company approve any
                  merger or consolidation as a result of which the equity
                  interests in the Company shall be changed, converted or
                  exchanged (other than a merger with a wholly-owned subsidiary
                  of the Company) or any liquidation of the company or any sale
                  or other disposition of fifty percent (50%) or more of the
                  assets or earnings power of the Company;

                           (v) the Company's Board of Directors shall approve
                  the distribution to the Company's shareholders of all or
                  substantially all of Company's net assets or shall approve the
                  dissolution of the Company; (i)

                           (vi) any other transaction or series of related
                  transactions occur which have substantially the effect of the
                  transactions specified in any of the preceding clauses in this
                  SECTION 7(b); or

                           (vii) Employee is Terminated Without Cause by the
                  Company within the period of ONE HUNDRED EIGHTY (180) DAYS
                  before an occurrence of a Change of Control as defined in any
                  of the preceding clauses of this SECTION 7(b) or the

                                       6
<PAGE>

                  execution of a contract intended to effect a Change of Control
                  as defined in any of the preceding clauses of this SECTION
                  7(b).

8. OTHER SEVERANCE BENEFITS.

                  (a) Except as set forth below, and notwithstanding the minimum
         term provided for in SECTION 1 of this Agreement, either the Company or
         Employee may terminate this Agreement at any time upon thirty (30) days
         notice to the other party, subject to the rights of Employee to any
         payment due under this Agreement in that circumstance. If at any time
         during the term of this Agreement, Employee is Terminated Without
         Cause, or Employee resigns for Good Reason as defined in SECTION 6 of
         this Agreement, then Employee shall be entitled to be paid a severance
         payment equal to two times (2x) Employee's highest base annual salary
         as set forth in SECTION 3(a) herein for Termination Without Cause
         during the term of this Agreement. Notwithstanding the first sentence
         of this SECTION 8(a), if a Change of Control occurs, the Company shall
         have no right to Terminate Without Cause the Employee's employment
         until the end of the then-current term of this Agreement.

                  (b) If at any time during the term of this Agreement Employee
         is Terminated Without Cause, or Employee resigns for Good Reason as
         defined in SECTION 6 of this Agreement, then (i) Employee shall be
         entitled to continuation of basic employee group benefits, as defined
         in SECTION 4(a), provided by Company to Employee for the lesser of one
         year after termination or until the Employee secures new employment
         without remuneration to Company, and (ii) the Employee's outstanding
         stock option agreements shall provide for a continuance of the option
         exercise period for ninety (90) days from Employee's termination or
         resignation date, except that in the case of death, voluntary
         termination, Retirement, Disability and termination for cause,
         Employee's continuance of the option exercise period shall be governed
         by the stock option agreements.

                  (c) If at any time during the term of this Agreement, Employee
         is Terminated Without Cause, or Employee resigns for Good Reason as
         defined in Section 6 of this Agreement, Company shall promptly (and in
         any event within five business days after a request by the Employee
         therefor) either pay or reimburse the Employee for the costs and
         expenses of any executive outplacement firm selected by the Employee,
         provided, however, that Company's liability hereunder shall be limited
         to 10% of current salary of such expenses incurred by the Employee. The
         Employee shall provide Company with reasonable documentation of the
         incurrence of such outplacement costs and expenses.

                  (d) With respect to provisions of the stock option agreements
         granted pursuant to the 1997 Long-Term Incentive Plan, "Termination For
         Good Reason" shall be construed to have the same meaning as
         "Termination Without Cause" as defined in this Agreement.

9. TIMING OF PAYMENT. Unless otherwise provided in this Agreement, any
severance or other payment payable to Employee under this Agreement shall be
paid within thirty (30) days after the event causing such payment or at such
other date as the parties agree.

                                       7
<PAGE>

10. OTHER BENEFITS. The provisions of SECTIONS 7 and 8 shall not affect
Employee's participation in, or termination of distributions and vested rights
under, any pension, profit sharing, insurance or other employee benefit plan of
Company to which Employee is entitled pursuant to the terms of such plans except
for the acceleration of vested benefits, to the maximum extent permissible under
applicable law or employee benefit plan document, in certain employee benefits
pursuant to SECTION 7(a) and the provisions pursuant to SECTION 8(b).

11. NO DUTY TO MITIGATE DAMAGES. In the event of termination of this Agreement
by Employee after a Change of Control as defined in SECTION 7 above, or as a
result of the breach by Company of any of its obligations hereunder, or in the
event of the termination of Employee's employment by Company in breach of this
Agreement or as a result of Employee's Termination Without Cause, or resignation
for Good Reason, Employee shall not be required to seek other employment in
order to mitigate his damages hereunder, and no compensation Employee does earn
after any termination shall be considered to mitigate damages Employee has
incurred or to reduce any payment Company is obligated to make to Employee
pursuant to this Agreement.

12. NO RIGHT TO SET OFF. Company shall not be entitled to set off against the
amount payable to Employee any amounts earned by Employee from other employment
after termination of his employment with Company or any amounts which might have
been earned by Employee in other employment had he sought such other employment.
The amounts payable to Employee under this Agreement shall not be treated as
damages but as severance compensation to which Employee is entitled by reason of
termination of this employment in all circumstances contemplated by this
Agreement.

13. NON-COMPETE AND NON-DISCLOSURE OF INFORMATION.

                  (a) For so long as Employee is employed by Company and
         continuing after the voluntary termination by Employee or termination
         for cause by Company as provided under SECTION 5(c) of such employment
         for TWO (2) YEARS:

                           (i) Employee (A) will nor accept a position as an
                  officer, director, employee, agent, consultant or
                  representative of any technology manufacturing ATM (automatic
                  teller machine) company with offices in any county or any
                  county in which the Company has offices, and (B) will not make
                  or fail to dispose of any stock in any other proprietary
                  technology manufacturing ATM (automatic teller machine)
                  company with offices within thirty-five (35) miles of Dallas,
                  Texas except investments equal to less than two percent (2%)
                  of the outstanding stock of any class issued by any publicly
                  traded company.

                           (ii) Except in the performance on Employee's
                  obligations to Company of one of its subsidiaries, Employee
                  shall not, directly or indirectly, use or permit the use of
                  any confidential or other proprietary information of a special
                  unique nature and value to Company or one of its subsidiaries
                  (the "Confidential Information"),

                                       8
<PAGE>

                  including, but not limited to, trade secrets, systems,
                  procedures, manuals, confidential reports, customer lists,
                  sales or distribution methods, patentable information and data
                  as well as financial information concerning Company or one of
                  its subsidiaries, and information with respect to the nature
                  and type of other services rendered by Company or one of its
                  subsidiaries, which Confidential Information has been used by
                  Company or one of its subsidiaries to date or during the term
                  of this Agreement, and has been made known (whether or not
                  with the knowledge and permission of Company, and whether or
                  not developed, devised or otherwise created in whole or in
                  part by the efforts of Employee) to Employee by reason of his
                  activities on behalf of Company or one of its subsidiaries.
                  Employee shall not reveal, divulge or make known any
                  Confidential Information to any individual partnership, firm,
                  company or other business organization whatsoever except in,
                  performance of Employee's obligations to Company or with the
                  express permission of the Board of Directors of Company or as
                  otherwise required by operation of law.

                  (b) Employee confirms that all Confidential Information is the
         exclusive property of Company. All business records, papers and
         documents kept or made by Employee relating to the business of Company
         shall be and remains the property of Company and shall remain in the
         possession of Company during the term and at all times thereafter. Upon
         the termination of his employment with Company or upon the request of
         Company at any time, Employee shall promptly deliver to Company, and
         shall retain no copies of, any written material records and documents
         made by Employee or coming into his possession concerning the business
         or affairs of Company.

                  (c) Without intending to limit the remedies available to
         Company, Employee acknowledges that a breach of any of the covenants
         contained in this SECTION 13 may result in material irreparable injury
         to Company or one of its subsidiaries for which them is not adequate
         remedy at law, that it may not be possible to measure damages for such
         injuries precisely, and that in the event of such a breach or threat
         thereof, may be entitled to obtain a temporary restraining order and/or
         a preliminary or permanent injunction restraining Employee from
         engaging in activities prohibited by this SECTION 13 or such other
         relief as may be required to specifically enforce any of the covenants
         in such Section. In the event a court requires a posting of a bond, the
         parties hereby agree that such bond shall be in the amount of One
         Thousand Dollars ($1,000.00).

(d)      The covenants in this SECTION 13 are severable and separate, and the
         unenforceability of any specific covenant shall not affect the
         provisions of any other covenant. Moreover, in the event any court of
         competent jurisdiction shall determine that the scope, time or
         territorial restrictions set forth are unreasonable, then it is the
         intention of the parties that such restrictions be enforced to the
         fullest extent which the court deems reasonable, and the Agreement
         shall thereby be reformed.

(e)      All of the covenants in this SECTION 13 shall be construed as an
         agreement independent of any other provision in this Agreement and the
         existence of any claim or cause

                                       9
<PAGE>

         of action of Employee against the Company or 171, whether predicated on
         this Agreement or otherwise, shall not constitute a defense to the
         enforcement by TTI or the Company of such covenant. It is specifically
         agreed that the period of TWO (2) YEARS following termination of
         employment stated at the beginning of this SECTION 13, during which the
         agreements and covenants of Employee made in this SECTION 13 shall be
         effective, shall be computed by excluding from such computation any
         time during which Employee is in violation of any provision of this
         SECTION 13.

14. RETURN OF COMPANY PROPERTY. All records, designs. patents, business plans,
financial statements, manuals, memoranda, lists and other property delivered to
or compiled by Employee by or on behalf of the Company, TTI or their
representatives, vendors, or customers which pertain to the business of the
Company or TTI shall be and remain the property of the Company or TTI, as the
case may be, and be subject at all times to their discretion and control.
Likewise, all correspondence, reports, records, charts, advertising materials
and other similar data pertaining to the business, activities or future plans of
the Company or TTI which is collected by Employee shall be delivered promptly to
the Company without request by it upon termination of Employee's employment.

15. INVENTION. Employee shall disclose promptly to TTI and the Company any and
all significant conceptions and ideas for inventions, improvements and valuable
discoveries, whether patentable or not. which are conceived or made by Employee,
solely or jointly with another, during the period of employment or within one
(1) year thereafter and which are directly related to the business or activities
of the Company or TTI and which Employee conceives as a result of Employee's
employment by the Company. Employee hereby assigns and agrees to assign all
Employee's interests therein to the Company or its nominee.

16. TRADE SECRETS. Employee agrees that Employee will not, during or after the
Term of this Agreement with the Company, disclose the specific terms of the
Company's or TTI's relationships or agreements with their respective significant
vendors or customers or any other significant and material trade secret of the
Company or TTI, whether in existence or proposed, to any person, firm,
partnership, corporation or business for any reason or purpose whatsoever.

17. ARBITRATION. Any unresolved dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration,
conducted before a panel of three (3) arbitrators in Dallas, Texas, in
accordance with the rules of the American Arbitration Association then in
effect. The arbitrators shall not have the authority to add to, detract from, or
modify any provision hereof nor to award punitive damages to any injured party.
The arbitrators shall have the authority to order back-pay, severance
compensation, vesting of options (or cash compensation in lieu of vesting of
options), reimbursement of costs, including those incurred to enforce this
Agreement in the event the arbitrators determine that Employee was terminated
without disability or cause, as defined in SECTION 5(b) and 5(c), respectively,
or that the Company has otherwise materially breached this Agreement. A decision
by a majority of the arbitration panel shall be final, non-appealable and
binding. Judgment may be entered on the arbitrators' award in any court having
jurisdiction. The direct expense of any arbitration proceeding shall be borne by
the Company.

                                       10
<PAGE>

         Each party shall bear his or its own costs of arbitration, but if
Employee is the prevailing party in such arbitration, he shall be entitled to
recover from Company as part of any award entered his reasonable expenses for
attorneys' fees and disbursements.

18. NOTICES. All notices, requests, demands and other communication called for
or contemplated hereunder shall be in writing and shall be deemed to have been
duly given when delivered personally or when mailed by United Stated certified
or registered mail, postage prepaid, addressed to the parties, their successors
in interest or assignees; at the following addresses or such other addresses as
the parties may designate by notice in the manner aforesaid:

         If to Company:             Tidel Engineering, L.P.
                                    2310 McDaniel Drive
                                    Carrollton, Texas 75006
                                    Attention: Chairman

         If to Employee:            Tidel Engineering, L.P.
                                    2310 McDaniel Drive
                                    Carrollton, Texas 75006
                                    Attention: ________________

19. GOVERNING LAW AND VENUE. This Agreement shall be governed by and construed
in accordance with the laws of the State of Texas without giving effect to any
principle of conflict-of-laws that would require the application of the law of
any other jurisdiction. Venue for any dispute shall lie exclusively in Dallas,
Dallas County, Texas.

20. SEVERABILITY; HEADINGS. If any portion of this Agreement is held invalid or
inoperative, the other portions of this Agreement shall be deemed valid and
operative and, so far as is reasonable and possible, effect shall be given to
the intent manifested by the portion held invalid or inoperative. The Section
headings herein are for reference purposes only and are not intended in any way
to describe, interpret, define or limit the extent or intent of the Agreement or
of any part hereof.

21. ENTIRE AGREEMENT. This Agreement is not a promise of future employment,
except as otherwise provided herein. This Agreement constitutes the entire
understanding between the parties with respect to the subject matter hereof,
superseding all negotiations, prior discussions and preliminary agreements, and
further superseding any and all employment arrangements between Employee and
Company or any of Company's subsidiaries, affiliates or other related entities.
This Agreement may not be amended except in a writing executed by the parties
hereto.

22. ASSIGNMENT; BINDING EFFECT. Employee understands that Employee has been
selected for employment by the Company on the basis of Employee's personal
qualifications, experience and skills. Employee agrees, therefore, that Employee
cannot assign all or any portion of Employee's performance under this Agreement.
Subject to the preceding two (2) sentences and

                                       11
<PAGE>

the express provisions of SECTION 7 above, this Agreement shall be binding upon,
inure to the benefit of an be enforceable by the parties hereto and their
respective heirs, legal representatives, successors and assigns.

23. EFFECTIVENESS. This Agreement shall be effective upon the Effective Date.

24. SURVIVAL OF SECTION. The provisions of SECTIONS 13, 14, 15 and 16 of this
Agreement shall survive the termination of this Agreement for the period
provided for therein.

         IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

TIDEL ENGINEERING, L.P.:                           EMPLOYEE:

By: Tidel Cash Systems, Inc.,
a Delaware corporation
its general partner
                                                   ----------------------------

                                                   ----------------

                                                   ----------------

By:
   -----------------------------------
                            , Chairman
        --------------------

ATTEST:

By:
   -----------------------------------
                            , Secretary
        --------------------

                                       12

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