GLOBAL AXCESS CORP

Reclassifications out of Accumulated Other Comprehensive Income. In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This update requires entities to disclose items reclassified out of accumulated other comprehensive income and into net income in a single location within the financial statements. The Company adopted ASU 2013-02 as of January 1, 2013, and now reports this information in Financial Footnote #9 “Accumulated Other Comprehensive Loss”.

(10). On April 23, 2013, the Company entered into a Second Forbearance Agreement and Amendment (the “Second Forbearance Agreement”) relating to several existing credit facilities Fifth Third (those impacted by the Forbearance Agreement). The Second Forbearance Agreement (executed and delivered April 23, 2013, dated April 18, 2013 and effective as of February 15, 2013) operates as a forbearance by Fifth Third of its rights against the Company with respect to several existing defaults by the Company under the Loan Agreements and the Lease Agreement, and supersedes the Forbearance Agreement to the extent provided therein. Specifically, Fifth Third agreed not to exercise certain rights in respect to the existing defaults for a period commencing on the date of the Second Forbearance Agreement and ending on the date which is the earliest of (i) May 7, 2013, (ii) at Fifth Third’s election, the occurrence or existence of any event of default, other than the existing defaults, or (iii) the occurrence of any Termination Event (as defined in the Forbearance Agreement) (the breadth of such time being the “Second Forbearance Period”). The Second Forbearance Agreement was subsequently superseded by The Third Forbearance Agreement (See Financial Footnote #14 “Subsequent Events”) and the May 7, 2013 was changed to May 21, 2013.

Under the Second Forbearance Agreement, effective as of January 16, 2013, the applicable loans shall bear interest at a per annum rate equal to the Default Rate (as defined in the Loan Agreements). The portion of such interest accruing at five percent (5%) in excess of the rate otherwise applicable shall be due and payable in cash on the date on which the Second Forbearance Period expires or is otherwise terminated, and thereafter on demand.

Under the Second Forbearance Agreement, in accordance with Section 3 of the Lease Agreement, if Lessees fail to make any payment of “Rent” on the applicable “Rent Payment Date” (as each term is defined in the Lease Agreement), a late payment fee equal to five percent (5%) of the amount of any such missed payment(s), shall accrue upon the applicable Rent Payment Date on which Lessees fail to make any payment. All late payment fees accrued in accordance with this provision shall be due and payable in cash on the date on which the Second Forbearance Period expires or is otherwise terminated, and thereafter on demand.

The Third Forbearance Agreement also operates as an omnibus amendment to certain terms contained in the Loan Agreements and the Lease Agreement, in exchange for certain agreements and representations made by the Company. The descriptions below details the amendments contained in the Third Forbearance Agreement which differ from those amendments contained in the First Forbearance Agreement and the Second Forbearance Agreement. To the extent that the amendments contained in the Third Forbearance Agreement do not specifically supersede such amendments contained in the First Forbearance Agreement and the Second Forbearance agreement, such amendments in the First Forbearance Agreement and the Second Forbearance Agreement remain in full force and effect. (See Financial Footnote #4 “Senior Lenders’ Notes Payable” – (#9) and (#10)).