Document:

IN THE
UNITED STATES DISTRICT COURT,

    NORTHERN
DISTRICT OF TEXAS, DALLAS DIVISION

    

    

    SIDNEY
MICHAEL COLE,

    

    Plaintiff,

    
      
        	 
      	
                CIVIL
      ACTION NO.: 3-08CV0791-P

              

      

    

    v.

    

    GLOBAL
AXCESS CORP,

    

    Defendant

    

    _____________________________________/

    

    MEDIATED SETTLEMENT
AGREEMENT

     

    

     

    THIS SETTLEMENT AGREEMENT is made and
entered into this 22nd day of
January, 2009, by and between Plaintiff, Sidney Michael Cole (“Cole”) and
Defendant, Global Axcess Corp (“Global”).

     

    W I T N E S S E T
H:

     

    WHEREAS, Cole brought suit against
Global in the above-styled case (“Lawsuit”) for damages and other relief, which
claims are disputed by Global, and any liability therefor; and

     

    WHEREAS, the parties have agreed to
resolve this matter, including all claims, whether or not presently asserted in
this litigation, by executing this Settlement Agreement, by which, amongst other
consideration to be exchanged between the parties as provided
herein.  Global’s insurer will pay a monetary sum to Cole, and Cole
will dismiss this action against Global, with prejudice.

     

    NOW, THEREFORE, in consideration of the
mutual covenants and promises contained herein and other good and valuable
considerations, the receipt and sufficiency of which are hereby acknowledged, it
is hereby stipulated and agreed by and between the parties hereto as
follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.           The
foregoing recitals are acknowledged and incorporated herein.

     

    2.           On
or before January 29, 2009, counsel for Cole will send a fully executed W-9 form
to counsel for Global, and Global’s insurer, Admiral Insurance Company, shall
tender the sum of $[XXXX]* to Cole’s counsel, Eugene Zemp DuBose, on or
before February 12, 2009.

     

    DuBose
shall hold the settlement funds in trust until such time as the case is
dismissed with prejudice as set forth in paragraph 3 below.

     

    3.           Within
ten (10) days following receipt of the settlement funds provided for herein,
Cole’s counsel shall cause to be filed a Voluntarily Notice of Dismissal With
Prejudice or other appropriate pleading (including an agreed order and dismissal
to be signed by all counsel) to cause this action to be dismissed with
prejudice.  Each party shall bear their own attorneys’ fees and
costs.

     

    4.           The
parties agree that the terms of this Settlement Agreement are strictly
confidential, and shall not be disclosed to any third party unless required by
law.  The parties may, however, disclose the terms of this Settlement
Agreement to their respective accountants or other professionals who have a need
to know for purposes of rendering professional services to the parties
hereto.  The parties hereto may further disclose the terms of this
Settlement Agreement as required by applicable securities and other laws or
regulations, but only so much of the terms of the Settlement Agreement as is
necessary or required in accordance with said securities and other laws or
regulations.

     

    5.           Cole,
for and in consideration of the payment of $[XXXX]*, and other valuable consideration received
from or on behalf of Global and its insurer, Admiral Insurance Company, does
hereby remise, release, acquit, satisfy, and forever discharge Global and its
subsidiary and affiliated companies, its current and/or former officers,
directors, employees, and agents, attorneys, accountants, and auditors
(including but not limited to Kirkland, Russ Murphy & Tapp and it’s agents
and employees), and its insurer, from any and all manner of obligations, action
and actions, cause and causes of action, suits, debts, dues, sums of money,
accounts, reckonings, bonds, bills, specialties, covenants, contracts,
controversies, agreements, promises, trespasses, damages, judgments, executions,
claims and demands whatsoever, in law or in equity, which Cole, his successors,
heirs and assigns ever had, now have or hereafter can, shall or may have,
against them, from the beginning of the world to the date hereof, arising out of
the facts, events, or transactions which was the subject of the
Lawsuit.

     

    

      

    

    
      * Filed under application for
confidential treatment.

      
        
        

      

      

        
          
             

          

          
            -2-

            
              

            

          

          
             

          

        

      

       

    

    6.           Global,
for good and valuable consideration, does hereby remise, release, acquit,
satisfy, and forever discharge Cole, his attorneys and agents from any and all
manner of obligations, action a actions, cause and causes of action, suits,
debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties,
covenants, contracts, controversies, agreements, promises, trespasses, damages,
judgments, executions, claims and demands whatsoever, in law or in equity, which
Global, its successors and assigns ever had, now have or hereafter can, shall or
may have, against them, from the beginning of the world to the date hereof,
arising out of the facts, events, or transactions at issue in the
Lawsuit.

     

    7.           Notwithstanding
anything to the contrary in this Settlement Agreement or otherwise provided
herein, Cole shall retain ownership of all Global stock and warrants he owned
prior to signing this Settlement Agreement.

     

    8.           This
Settlement Agreement may only be modified by a written document executed by all
parties hereto, and no oral modifications to this Settlement Agreement shall be
enforceable by any party.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    9.           The
parties stipulate and agree that they have jointly and equally participated in
the drafting of this Settlement Agreement.  The parties further
stipulate and agree that they have voluntarily entered into this Settlement
Agreement without reliance on any statements or demands made by any other party
hereto, including the party’s respective counsel, and that there have been no
promises or inducements to enter into this Settlement Agreement that have not
been expressly provided for herein.

     

    10.           This
Settlement Agreement shall be governed by and construed in accordance with the
laws of the state of Texas.

     

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

     

    

    GLOBAL
AXCESS CORP

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	      
                                    By: 

                                  	
                                    /s/
      George McQuain

                                  	 	
                                    /s/
      Steve Brust

                                  
	 
      	 	
                                    Witness

                                  
	      
                                    Its:  

                                  	
                                    President
      & CEO

                                  	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                                    /s/
      Sidney Michael Cole

                                  	 	
                                    /s/ Eugene
      Zemp DuBose

                                  
	
                                    SIDNEY
      MICHAEL COLE

                                  	 	
                                    Witness

                                  
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                                    APPROVED
      AS TO FORM:

                                  	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	
                                    /s/
      Steve Brust

                                  	 	
                                    /s/  Eugene
      Zemp DuBose

                                  
	
                                    Steve
      Brust, counsel for Global

                                  	 	
                                     Eugene
      Zemp DuBose, counsel for
Cole

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        -4-Unassociated Document

    SETTLEMENT
AGREEMENT

     

    A.     
Promissory
Note. Attached hereto as Exhibit A CAMOFI Master LDC (“CAMOFI”) is
providing wiring instructions to counsel for Global Axcess Corporation (“Global
Axcess”), and Global Axcess’s insurer, Admiral Insurance Company (“Admiral”).
Within the time period for closing and obtaining financing as set forth in
paragraph D below, Global Axcess will pay $3,500,000 to CAMOFI, together with
accrued but unpaid interest on the Note through and including the closing date
(“Interest”), and Admiral shall pay $200,000 to CAMOFI, in lump sums, to cancel
the Note. The payment of $3,700,000 and Interest is the entire payment that
Global Axcess or its insurer will make under the Note or under any transaction
documents executed by the parties in October 2005, with the exception of any
obligations that Global Axcess may have to CAMOFI, with respect to the warrant
and the registration rights agreement, and further provided that Global Axcess
shall pay to Centrecourt Asset Management LLC the amount of $25,000 to reimburse
it for the fees and disbursements of its legal counsel incurred in connection
with the subject litigation. All such transaction documents will remain in full
force and effect (subject to the parties’ litigation positions) until closing
pursuant to paragraph D hereof. Global Axcess will cooperate as required by such
transaction documents (including the registration rights agreement) in taking
steps to make sure that all of the shares of common stock underlying the warrant
are freely tradeable.

     

    B.       Warrant. The warrant
previously issued to CAMOFI shall remain unchanged and in full force and effect,
except that the exercise price thereof will be changed to $0.01 per share, and
the provisions in the warrant respecting rights to full ratchet anti-dilution
protection and most favored nation status (warrant §§ 3(b), 3(c)) will be
cancelled.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    C.       Mutual Releases / Dismissals
With Prejudice.  Within ten (10) days following CAMOFI’s
receipt of settlement funds from Global Axcess and Admiral Insurance Company as
set forth above, the parties will give each other the usual form of general
release, which will apply to all actions taken and omissions made by each party,
its officers, directors, etc. through the date hereof, with the exception that
CAMOFI will not release Global Axcess from any obligations that Global Axcess
may have to CAMOFI, after the date hereof, with respect to the warrant and the
registration rights agreement. Also within ten (10) days following CAMOFI’s
receipt of settlement funds as provided herein, the parties shall file
stipulations of dismissal of the pending litigation (including CAMOFI’s claim
and Global Axcess’ counterclaim) with prejudice.

     

    D.       Financing. CAMOFI
acknowledges that Global Axcess needs to obtain new financing in order to make
the payment to which item A refers. As a result, this entire agreement is
contingent on Global Axcess’ successfully obtaining financing such that closing
on this Agreement can occur on or before April 16, 2009. Global Axcess agrees to
use commercially reasonable efforts to obtain such financing. If Global Axcess
is unsuccessful in obtaining such financing, this Agreement will become null and
void, and the parties will return to their positions as of the date hereof,
without prejudice to either party’s litigation position.

     

    E.        Definitive Agreement.
The parties’ settlement as set forth above is binding as of the execution of
this document on March 17, 2009. The parties will execute such other documents
as may be reasonably necessary to effectuate their settlement.

    

    
      
        
          
            
              	
                      /s/
      Michael
      Loew

                    	 	
                      /s/
      George
      A. McQuain

                    
	
                      Michael
      Loew

                    	 	
                      George
      A. McQuain

                    
	
                      CAMOFI
      Master LDC

                    	 	
                      President
      & CEO, Global Axcess Corp

                    
	
                      March
      17, 2009

                    	 	
                      March
      17,
2009

                    

            

          

        

      

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    ACKNOWLEDGMENT

     

    Admiral
Insurance Company hereby acknowledges its obligation to fund the settlement on
the terms set forth above. Notwithstanding the foregoing, Admiral shall not be a
party to any other terms of this Settlement Agreement, and does not intend
to otherwise create any other rights or interests with respect
to this settlement.

    

    
      
        
          
            	
                    ADMIRAL
      INSURANCE COMPANY

                  
	 
      
	
                    By:

                  	
                    /s/ Jane DiGioia

                  
	 
      	
                    Jane
      DiGioia, Senior Claims Attorney, Monitor Liability Managers,
      LLC

                  

          

        

      

    

    
      
         

      

      
        -3-

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