Extension of Laurus Notes

Reference is hereby made to the following agreements, as each is amended, modified or supplemented from time to time (i) that certain Convertible Term Note in the principal amount of $6,450,000, dated November 25, 2003, made by Tidel Technologies, Inc. (“Borrower”) in favor of Laurus Master Fund, Ltd. (“Holder”) (the “2003 Convertible Note”), (ii) that certain Convertible Term Note in the principal amount of $600,000, dated November 26, 2004, made by Borrower in favor of Holder (the “2004 Convertible Note”), (iii) that certain Convertible Term Note in the principal amount of $1,250,000, dated November 26, 2004, made by Borrower in favor of Holder (the “P.O. Note”), and (iv) the certain Purchase Order Financing and Security Agreement dated November 26, 2004 by and between Borrower and Holder (the “P.O. Agreement”, and together with the 2003 Convertible Note, the 2004 Convertible Note, and the P.O. Note, the “Laurus Notes”). All capitalized terms used herein and not defined herein shall have the meaning ascribed to them in the Laurus Notes.

WHEREAS, Borrower and Holder agree that Borrower is in process of finalizing a definitive proxy statement for a special meeting of Borrower’s stockholders to be held on or about December 28, 2005, to approve the sale of its ATM Business to NCR Corporation, and that it is in the best interests of Borrower and Holder to extend certain principal payments due to Holder by Borrower on the Laurus Notes prior to such special meeting date to prevent an event of default under the Laurus Notes,

NOW THEREFORE, Borrower and Holder hereby agree, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, that the Laurus Notes shall be amended as follows: