Document:

EX-10.2

	 	 	 
	To:

From:

	 	April 4, 2008

Alaska Communications Systems Group, Inc.

600 Telephone Ave.

Anchorage, Alaska 99503

Attn:David Wilson

Telephone:907-297-3000

Facsimile:907-297-3052

Barclays Capital Inc.,

as Agent for Barclays Bank PLC

200 Park Avenue

New York, New York 10166

Telephone:212-412-4000

Facsimile:212-412-7519
	Re:

	 	Convertible Bond Hedge Transaction

(Transaction Reference Number: BN57235)

Ladies and Gentlemen:

The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below, as
amended on April 4, 2008 (the “Transaction”), between Barclays Bank PLC (“Dealer”) and Alaska
Communications Systems Group, Inc. (“Counterparty”). This communication constitutes a
“Confirmation” as referred to in the Agreement specified below, as well as for purposes of Rule
10b-10 promulgated under the Securities Exchange Act of 1934, as amended. An affiliate of Dealer,
Barclays Capital Inc. (the “Agent”), is acting as Dealer’s agent for this Transaction.

1. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA
Equity Derivatives Definitions (the “Equity Definitions” and together with the 2006 Definitions,
the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2006 Definitions and the
Equity Definitions, the Equity Definitions will govern. Certain defined terms used herein have the
meanings assigned to them in the Offering Memorandum dated April 2, 2008 (the “Offering
Memorandum”) and the Indenture to be dated on or about April 8, 2008, by and between Counterparty
and The Bank of New York as trustee (the “Indenture”), each relating to the USD125,000,000
principal amount of 5.75% convertible notes due March 1, 2013 (the “Convertible Securities”),
including the Convertible Securities issued pursuant to the initial purchasers’ exercise of their
option to purchase additional Convertible Securities pursuant to the Purchase Agreement (as defined
below). Counterparty shall provide Dealer a copy of the executed Indenture on the Effective Date.
In the event of any inconsistency between the terms defined in the Indenture or defined in the
Offering Memorandum and this Confirmation, this Confirmation shall govern. For the avoidance of
doubt, references herein to provisions of the Indenture are based on the description of the
Convertible Securities set forth in the Offering Memorandum. If any relevant provisions of the
Indenture differ in any material respect from those described in the Offering Memorandum, the
parties will, if appropriate, amend this Confirmation in good faith to preserve the economic intent
of the parties. The parties further acknowledge that if the Indenture is amended, modified or
supplemented following its execution, any such amendment, modification or supplement will be
disregarded for purposes of this Confirmation unless the parties agree otherwise in writing.

This Confirmation evidences a complete and binding agreement between Dealer and Counterparty
as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to, an agreement in the form of the ISDA 2002 Master
Agreement (the “Agreement”), as if Dealer and Counterparty had executed an agreement in such form
(without any Schedule but with the elections set forth in this Confirmation) on the Trade Date.
For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

Each of Dealer and Counterparty acknowledges to and agrees with the other party hereto and to
and with the Agent that (i) the Agent is acting as agent for Dealer under the Transaction pursuant
to instructions from Dealer, (ii) the Agent is not a principal or party to the Transaction, and may
transfer its rights and obligations with respect to the Transaction, (iii) the Agent shall have no
responsibility, obligation or liability to either party in respect of the Transaction, (iv) Dealer
and the Agent have not given, and Counterparty is not relying (for purposes of making any
investment decision or otherwise) upon, any statements, opinions or representations (whether
written or oral) of Dealer or the Agent, other than the representations expressly set forth in this
Confirmation and the Agreement, and (v) each party agrees to proceed solely against the other
party, and not the Agent, to collect or recover any money or securities owed to it in connection
with the Transaction. Each party hereto acknowledges and agrees that the Agent is an intended third
party beneficiary hereunder. Counterparty acknowledges that the Agent is an Affiliate of Dealer.

Dealer is not a member of the Securities Investor Protection Corporation.

2. The Transaction constitutes a Share Option Transaction for purposes of the Equity
Definitions. The terms of the particular Transaction to which this Confirmation relates are as
follows:

	 	 	 
	General Terms:

	 	

	Trade Date:

	 	April 2, 2008.

	 	 	 	Effective Date: The closing date of the initial issuance of the Convertible Securities.

	 	 	 
	Option Type:

Seller:

Buyer:

	 	Call.

Dealer.

Counterparty.

	 	 	 	Shares: The Common Stock of Counterparty, par value USD0.01 per share (Ticker Symbol:
“ALSK”).

	 	 	 	Number of Options: The number of Convertible Securities in denominations of USD1,000
principal amount issued by Counterparty on the closing date for the initial issuance of
the Convertible Securities (including the Convertible Securities issued pursuant to the
initial purchasers’ exercise of their option to purchase additional Convertible
Securities pursuant to the Purchase Agreement (as defined below)).

	 	 	 	Number of Shares: As of any date, the product of the Number of Options and the Conversion
Rate.

	 	 	 	Applicable Percentage: 50%.

	 	 	 	Option Entitlement: As of any date, a number of Shares per Option equal to the Conversion
Rate.

	 	 	 	Strike Price: As of any date, USD1,000 divided by the Option Entitlement.

	 	 	 	Conversion Rate: As of any date, the “Applicable Conversion Rate” (as defined in the
Indenture as described in the Offering Memorandum under “Description of notes  ̄
Conversion rights  ̄ General”) as of such date, but without regard to any adjustments to
the “Applicable Conversion Rate” as set forth in the section of the Indenture
containing the provision described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Adjustment to shares delivered upon conversion upon certain
fundamental changes” (a “Fundamental Change Adjustment”) or any discretionary
adjustment as set forth in the section of the Indenture containing the provisions
described in the sixth to last paragraph in the Offering Memorandum under “Description
of notes  ̄ Conversion rights  ̄ Conversion rate adjustments” (i.e., the paragraph
commencing with “We are permitted to increase . . .”) (a “Discretionary Adjustment”).

	 	 	 
	Premium:

Premium Payment Date:

	 	USD10,215,625.00.

The Effective Date.

	 	 	 	Exchange: The NASDAQ Global Select Market of the Nasdaq Stock Market, Inc.

	 	 	 
	Related Exchange:

	 	All Exchanges.
	Procedures for Exercise:

	 	

	Potential Exercise Dates:

	 	Each Conversion Date.

	 	 	 	Conversion Date: Each “Conversion Date” (as defined in the Indenture as described in the
Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄ Conversion
procedures”) occurring during the period from and excluding the Trade Date to but
excluding the Expiration Date, for Convertible Securities that are submitted for
conversion on such Conversion Date in accordance with the terms of the Indenture (such
Convertible Securities, each in denominations of USD1,000 principal amount, the
“Relevant Convertible Securities” for such Conversion Date).

	 	 	 	Required Exercise on

	 	 	 	Conversion Dates: On each Conversion Date, a number of Options equal to the number of
Relevant Convertible Securities for such Conversion Date in denominations of USD1,000
principal amount shall be automatically exercised, subject to “Notice of Exercise”
below.

	 	 	 	Expiration Date: March 1, 2013.

	 	 	 	Automatic Exercise: As provided above under “Required Exercise on Conversion Dates”.

	 	 	 	Notice Deadline: In respect of any exercise of Options hereunder on any Conversion Date, the
Scheduled Trading Day prior to the first Scheduled Valid Day of the Settlement
Averaging Period relating to the Convertible Securities converted on the Conversion
Date occurring on the relevant Exercise Date; provided that in the case of any exercise
of Options hereunder in connection with the conversion of any Relevant Convertible
Securities on any Conversion Date occurring during the period starting on, and
including, November 1, 2012 and ending on, and including, the “Scheduled Trading Day”
(as defined in the Indenture as described in the Offering Memorandum under “Description
of notes  ̄ Conversion rights  ̄ Settlement upon conversion”) immediately preceding the
“Maturity Date” (as defined in the Indenture as described in the Offering Memorandum
under “Description of notes  ̄ General”) (the “Final Conversion Period”), the Notice
Deadline shall be the “Scheduled Trading Day” immediately preceding the “Maturity
Date”.

	 	 	 	Notice of Exercise: Notwithstanding anything to the contrary in the Equity Definitions,
Dealer shall have no obligation to make any payment or delivery in respect of any
exercise of Options hereunder unless Counterparty notifies Dealer in writing prior to
5:00 PM, New York City time, on the Notice Deadline in respect of such exercise of (i)
the number of Options being exercised on such Exercise Date, (ii) the Conversion Date
and (iii) the applicable settlement method under the Indenture and “Specified Dollar
Amount” (as defined in the Indenture as described in the Offering Memorandum under
“Description of notes  ̄ Conversion rights  ̄ Settlement upon conversion”); provided that
in the case of any exercise of relevant Options in connection with the conversion of
any Relevant Convertible Securities on any Conversion Date occurring during the Final
Conversion Period, the contents of such notice shall be as set forth in clause (i)
above. Counterparty acknowledges its responsibilities under applicable securities
laws, and in particular Section 9 and Section 10(b) of the Exchange Act (as defined
below) and the rules and regulations thereunder, in respect of any election of a
settlement method or a “Specified Dollar Amount” with respect to the Convertible
Securities. For the avoidance of doubt, if Counterparty fails to give such notice when
due in respect of any exercise of Options hereunder, (i) such notice (and the related
exercise of Options) shall be effective for Relevant Convertible Securities with a
Conversion Date prior to the Final Conversion Period if given after the Notice
Deadline, but prior to 5:00 PM New York City time, on the fifth Scheduled Trading Day
following the Notice Deadline, in which event the Calculation Agent shall have the
right to adjust the Delivery Obligation as appropriate to reflect the additional costs
(including, but not limited to, hedging mismatches and market losses) and expenses
incurred by Dealer in connection with its hedging activities (including the unwinding
of any hedge position) as a result of Dealer not having received such notice on or
prior to the Notice Deadline, (ii) in respect of any exercise of Options relating to
the conversion of any Relevant Convertible Securities with a Conversion Date during the
Final Conversion Period, Dealer’s obligation to make any payment or delivery with
respect to such exercise shall be permanently extinguished, and late notice shall not
cure such failure and (iii) in any other case of late notice, the Calculation Agent
shall determine the amount of Shares and/or cash Dealer is obligated to deliver in
respect of such Options and the settlement date therefor.

	 	 	 	Final Period Start Date Election: Counterparty shall notify Dealer in writing of the
“Specified Dollar Amount” for any Conversion Date occurring on or after August 2, 2012
(the “Final Period Start Date”) by 5:00 PM New York City time, on August 1, 2012; it
being understood that Counterparty shall notify Dealer of the same “Specified Dollar
Amount” that is applicable to conversions of the Convertible Securities on and after
the Final Period Start Date and Counterparty may elect to settle its conversion
obligation under the Indenture by cash, Shares or a combination of cash and Shares.

	 	 	 
	Dealer’s Telephone Number

and Telex and/or Facsimile Number

and Contact Details for purpose of

Giving Notice:

	 	

To be provided by Dealer.

	 	 	Settlement Terms:

	 	 	 	Settlement Method: Net Share Extended Settlement, Net Share Regular Settlement, Combination
Settlement or Cash Settlement consistent with the settlement method elected by
Counterparty for the Relevant Convertible Securities and subject to the provisions
below.

	 	 	 	Net Share Extended Settlement: Net Share Extended Settlement shall apply if either
(i) Counterparty has elected or been deemed to have elected to deliver only Shares to
satisfy the “Conversion Obligation” (as defined in the Indenture as described in the
Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄ Settlement upon
conversion”) in connection with the conversion of the Relevant Convertible Securities
or (ii) Counterparty has elected to deliver a combination of Shares and cash to satisfy
the “Conversion Obligation” in connection with the conversion of the Relevant
Convertible Securities and the applicable “Specified Dollar Amount” (as defined in the
Indenture as described in the Offering Memorandum under “Description of notes  ̄
Conversion rights  ̄ Settlement upon conversion”) with respect to such conversion is
less than $1,000.

	 	 	 	Net Share Regular Settlement: Net Share Regular Settlement shall apply if (i)
Counterparty has elected or been deemed to have elected to deliver a combination of
Shares and cash to satisfy the “Conversion Obligation” (as defined in the Indenture as
described in the Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄
Settlement upon conversion”) in connection with the conversion of the Relevant
Convertible Securities and (ii) the applicable “Specified Dollar Amount” (as defined in
the Indenture as described in the Offering Memorandum under “Description of notes  ̄
Conversion rights  ̄ Settlement upon conversion”) with respect to such conversion is
equal to $1,000.

	 	 	 	Combination Settlement: Combination Settlement shall apply if (i) Counterparty has elected
to deliver a combination of Shares and cash to satisfy the “Conversion Obligation” (as
defined in the Indenture as described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Settlement upon conversion”) in connection with the
conversion of the Relevant Convertible Securities and (ii) the applicable “Specified
Dollar Amount” (as defined in the Indenture as described in the Offering Memorandum
under “Description of notes  ̄ Conversion rights  ̄ Settlement upon conversion”) with
respect to such conversion is greater than $1,000.

	 	 	 	Cash Settlement: Cash Settlement shall apply if Counterparty has elected to deliver
only cash to satisfy the “Conversion Obligation” (as defined in the Indenture as
described in the Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄
Settlement upon conversion”) in connection with the conversion of the Relevant
Convertible Securities.

	 	 	 	Delivery Obligation: In respect of an Exercise Date occurring on a Conversion Date, in lieu
of the obligations set forth in Sections 8.1 and 9.1 of the Equity Definitions, and
subject to “Notice of Exercise” above, Dealer will deliver to Counterparty, on the
relevant Settlement Date,

(a) if Net Share Extended Settlement applies, the
Applicable Percentage of a number of Shares equal to
the Net Shares (calculated based on the Settlement
Averaging Period for Net Share Extended Settlement)
in respect of the relevant Options exercised on such
Exercise Date. In no event will the Net Shares be
less than zero.

(b) if Net Share Regular Settlement applies, the
Applicable Percentage of a number of Shares equal to
the Net Shares (calculated based on the Settlement
Averaging Period for Net Share Regular Settlement) in
respect of the relevant Options exercised on such
Exercise Date. In no event will the Net Shares be
less than zero.

(c) if Combination Settlement applies, the Applicable
Percentage of an amount of cash and a number of
Shares, if any, equal to the Combination Amount.

(d) if Cash Settlement applies, the Applicable
Percentage of an amount of cash equal to the
Conversion Value in excess of $1,000.

If such exercise relates to the conversion of
Relevant Convertible Securities in connection with
which holders thereof are entitled to receive
additional Shares and/or cash pursuant to the
adjustments to the “Applicable Conversion Rate”
pursuant to a Fundamental Change Adjustment, then,
notwithstanding the foregoing, the Delivery
Obligation shall include the Applicable Percentage of
such additional Shares and/or cash, except that the
Delivery Obligation shall be capped so that the value
of the Delivery Obligation per Option (with the value
of any Shares included in the Delivery Obligation
determined by the Calculation Agent using the VWAP
Price on the last day of the relevant Settlement
Averaging Period) does not exceed the amount as
determined by the Calculation Agent that would be
payable by Dealer pursuant to Section 6 of the
Agreement if such Conversion Date were an Early
Termination Date resulting from an Additional
Termination Event with respect to which the
Transaction (except that, for purposes of determining
such amount the Number of Options shall be deemed to
be equal to the number of Options exercised on such
Exercise Date) was the sole Affected Transaction and
Counterparty was the sole Affected Party (determined
without regard to Section 8(b) of this Confirmation).

Dealer will deliver cash in lieu of any fractional
Shares to be delivered with respect to any Net Shares
or Combination Amount valued at the VWAP Price for
the last Valid Day of the relevant Settlement
Averaging Period.

If Counterparty is permitted to or required to
exercise discretion under the terms of the Indenture
with respect to any determination, calculation or
adjustment relevant to conversion of the Convertible
Securities, Counterparty shall consult with Dealer
with respect thereto and shall make such
determination, calculation or adjustment for purposes
of the Convertible Securities in a commercially
reasonable manner.

	 	 	 	Net Shares: In respect of any Option exercised on any Exercise Date corresponding
to a Conversion Date, a number of Shares equal to the sum of, for each Valid Day during
the applicable Settlement Averaging Period for such Option, (i) the Option Entitlement
on such Valid Day multiplied by (ii) (A) the VWAP Price on such Valid Day less the
Strike Price, divided by (B) such VWAP Price, divided by (iii) the number of Valid Days
in such Settlement Averaging Period; provided however that if the calculation contained
in clause (A) above results in a negative number, such number shall be replaced with
the number “zero”.

	 	 	 	Valid Day: A day on which (i) trading in the Shares generally occurs on the Exchange
or, if the Shares are not then listed on the Exchange, on the principal other U.S.
national or regional securities exchange on which the Shares are then listed or, if the
Shares are not then listed on a U.S. national or regional securities exchange, in the
principal other market on which the Shares are then traded and (ii) there is no Market
Disruption Event.

	 	 	 	Scheduled Valid Day: A day on which trading in the Shares is scheduled to occur on the
principal U.S. national or regional securities exchange or market on which the Shares
are listed or admitted for trading. If the Shares are not so listed or admitted for
trading, “Scheduled Valid Day” means a New York Business Day.

	 	 	 	Market Disruption Event: Section 6.3(a) of the Equity Definitions is hereby amended by
deleting the words “during the one hour period that ends at the relevant Valuation
Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the
case may be,” in clause (ii) thereof, and by amending and restating clause (a)(iii)
thereof in its entirety to read as follows: “(iii) an Early Closure that the
Calculation Agent determines is material.”

Section 6.3(d) of the Equity Definitions is hereby
amended by deleting the remainder of the provision
following the term “Scheduled Closing Time” in the
fourth line thereof.

	 	 	 	VWAP Price: On any Valid Day, the per Share volume-weighted average price as
displayed under the heading “Bloomberg VWAP” on Bloomberg page “ALSK.UQ <equity>
VAP” (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m.
(New York City time) on such Valid Day (or if such volume-weighted average price is
unavailable, the market value of one Share on such Valid Day, as determined by the
Calculation Agent using a volume-weighted average price method).

	 	 	 	Settlement Averaging Period: In respect of any Option exercised on any Exercise Date
corresponding to a Conversion Date,

(x) with respect to an Option with a Conversion Date
occurring prior to the Final Period Start Date, (i)
if Net Share Extended Settlement applies, the one
hundred twenty (120) consecutive Valid Days
commencing on and including the third Valid Day
following such Conversion Date or (ii) if Net Share
Regular Settlement, Combination Settlement or Cash
Settlement applies, the sixty (60) consecutive Valid
Days commencing on and including the third Valid Day
following such Conversion Date, or

(y) if Net Share Extended Settlement applies with
respect to such Option with a Conversion Date
occurring on or after the Final Period Start Date,
the one hundred twenty (120) consecutive Valid Days
commencing on, and including, the one hundred twenty
second (122nd) Scheduled Valid Day
immediately prior the Expiration Date; or

(z) if either Net Share Regular Settlement,
Combination Settlement or Cash Settlement applies
with respect to such Option with a Conversion Date
occurring on or after the Final Period Start Date,
(A) if the Conversion Date occurs during the Final
Conversion Period, the sixty (60) consecutive Valid
Days commencing on, and including, the sixty second
(62nd) Scheduled Valid Day immediately
prior to the Expiration Date or (B) if the Conversion
Date occurs on or after the Final Period Start Date
but before the Final Conversion Period, the sixty
(60) consecutive Valid Days commencing on and
including the third Valid Day following such
Conversion Date.

	 	 	 	Combination Amount: In respect of any Option exercised on any Exercise Date corresponding to
a Conversion Date, (A) an amount of cash equal to the difference between (i) the lesser
of (x) the applicable “Specified Dollar Amount” (as defined in the Indenture as
described in the Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄
Settlement upon conversion”) and (y) the Conversion Value and (ii) $1,000, and (B) to
the extent the Conversion Value exceeds the applicable “Specified Dollar Amount”, a
number of Shares equal to the sum of the Daily Share Amounts for each of the Valid Days
during the applicable Settlement Averaging Period; provided, however, that if the
calculation contained in clause (A) above results in a negative number, such number
shall be replaced with the number “zero”.

	 	 	 	Daily Share Amount: Means, for each Valid Day during the applicable Settlement
Averaging Period, (A) the greater of (i) zero and (ii) the Option Entitlement on such
Valid Day minus the quotient of (x) the applicable “Specified Dollar Amount” (as
defined in the Indenture as described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Settlement upon conversion”) divided by (y) the VWAP Price
on such Valid Day divided by (B) 60.

	 	 	 	Conversion Value: In respect of any Option exercised on any Exercise Date corresponding to a
Conversion Date, an amount equal to the sum of, for each Valid Day during the
applicable Settlement Averaging Period for such Option, (A) the product of (i) the
Option Entitlement on such Valid Day and (ii) the VWAP Price on such Valid Day divided
by (B) 60.

	 	 	 	Settlement Date: In respect of any Option exercised on any Exercise Date corresponding to a
Conversion Date, the date Shares and/or cash will be delivered with respect to the
Convertible Securities related to such Option under the terms of the Indenture;
provided however that the Settlement Date shall not be prior to the date one Settlement
Cycle following the final day of the relevant Settlement Averaging Period.

	 	 	 	Other Applicable Provisions: To the extent Dealer is obligated to deliver Shares
hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 (except that the
Representation and Agreement contained in Section 9.11 of the Equity Definitions shall
be modified by excluding any representations therein relating to restrictions,
obligations, limitations or requirements under applicable securities laws arising as a
result of the fact that Counterparty is the Issuer of the Shares) and 9.12 of the
Equity Definitions will be applicable as if “Physical Settlement” applied to the
Transaction.

	 	 	 	Restricted Certificated Shares: Notwithstanding anything to the contrary in the Equity
Definitions, Dealer may, in whole or in part, deliver Shares required to be delivered
to Counterparty hereunder in certificated form in lieu of delivery through the
Clearance System. With respect to such certificated Shares, the Representation and
Agreement contained in Section 9.11 of the Equity Definitions shall be modified by
deleting the remainder of the provision after the word “encumbrance” in the fourth line
thereof.

	 	 	Share Adjustments:

	 	 	 	Method of Adjustment: Notwithstanding Section 11.2 of the Equity Definitions, upon the
occurrence of any event or condition set forth in the sections of the Indenture
containing the provisions described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Conversion rate adjustments” other than any event or
condition that would result in a Fundamental Change Adjustment or a Discretionary
Adjustment (each, an “Adjustment Event”), the Calculation Agent shall make a
corresponding adjustment, if necessary, to the terms relevant to the exercise,
settlement, payment or other terms of the Transaction. Immediately upon the occurrence
of any Adjustment Event, Counterparty shall notify the Calculation Agent of such
Adjustment Event; and once the adjustments to be made to the terms of the Indenture and
the Convertible Securities in respect of such Adjustment Event have been determined,
Counterparty shall immediately notify the Calculation Agent in writing of the details
of such adjustment.

	 	 	 	Dividend Adjustment: If at any time during the period from, but excluding, the Trade Date
to, and including, the later of the Expiration Date and the last day of the final
Settlement Averaging Period, an ex-dividend date for any cash dividend or distribution
occurs with respect to the Shares (an “Ex-Dividend Date”) and that dividend or
distribution is less than the Regular Dividend on a per Share basis, then the
Calculation Agent will adjust any variable relevant to the exercise, settlement,
payment or other terms of the Transaction to preserve the fair value of the Transaction
to Dealer after taking into account such dividend or distribution. If no Ex-Dividend
Date occurs within any regular quarterly dividend period, Counterparty shall be deemed
to have paid a cash dividend in an amount of zero with an Ex-Dividend Date occurring on
the last Exchange Business Day of such regular quarterly dividend period.

	 	 	 	Regular Dividend: USD 0.215 per quarter.

	 	 	Extraordinary Events:

	 	 	 	Merger Events: Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event”
means the occurrence of any event or condition set forth in the section of the
Indenture containing the provisions described in the eighth to last paragraph in the
Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄ Conversion rate
adjustments” (i.e., the paragraph commencing with “In the event of: any
reclassification . . .”).

	 	 	 	Consequences of Merger Events: Notwithstanding Section 12.2 of the Equity Definitions, upon
the occurrence of a Merger Event, the Calculation Agent shall make the corresponding
adjustment in respect of any adjustment under the Indenture to any one or more of the
nature of the Shares, the Number of Options and any other variable relevant to the
exercise, settlement, payment or other terms of the Transaction; provided however that
such adjustment shall be made without regard to any adjustment to the “Applicable
Conversion Rate” pursuant to a Fundamental Change Adjustment or a Discretionary
Adjustment; and provided further that the Calculation Agent may limit or alter any such
adjustment referenced in this paragraph so that the fair value of the Transaction to
Dealer is not reduced as a result of such adjustment in the case of a “Fundamental
Change” (as defined in the Indenture as described in the Offering Memorandum under
“Description of notes  ̄ Fundamental change permits holders to require us to purchase
notes”) described in clauses (1) or (2) of the definition thereof (for the avoidance of
doubt, determined without regard to the 90% publicly traded securities carve-out); and
provided further that if, with respect to a Merger Event, the consideration for the
Shares includes (or, at the option of a holder of Shares, may include) shares of an
entity or person not organized under the laws of the United States, any State thereof
or the District of Columbia, Cancellation and Payment (Calculation Agent Determination)
shall apply.

	 	 	 	Notice of Merger Consideration: Upon the occurrence of a Merger Event that causes the Shares
to be converted into the right to receive more than a single type of consideration
(determined based in part upon any form of election of the holders of the Shares),
Counterparty shall reasonably promptly (but, in any event, prior to the date on which
such Merger Event is consummated) notify the Calculation Agent of (i) the weighted
average of the types and amounts of consideration to be received by the holders of
Shares entitled to receive cash, securities or other property or assets with respect to
or in exchange for such Shares in any Merger Event who affirmatively make such an
election and (ii) the details of the adjustment to be made under the Indenture in
respect of such Merger Event.

Nationalization, Insolvency

	 	•	 	r Delisting: Cancellation and Payment (Calculation Agent Determination); provided
that, in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions,
it will also constitute a Delisting if the Exchange is located in the United States and
the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York
Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or the
NASDAQ Global Market (or their respective successors); if the Shares are immediately
re-listed, re-traded or re-quoted on any such exchange or quotation system, such
exchange or quotation system shall thereafter be deemed to be the Exchange.

	 	 	 	 	 
	Additional Disruption Events:
	 	 
	Hedging Party:

	 	(a)Change in Law:

(b)Failure to Deliver:

(c)Insolvency Filing:

(d)Hedging Disruption:

(e)Increased Cost of Hedging:
	 	Applicable.

Applicable.

Applicable.

Applicable.

Applicable.

For all applicable Additional Disruption Events, Dealer.
	Determining Party:
	 	For all applicable Additional Disruption Events, Dealer.
	Acknowledgments:

	 	

	 	

	Non-Reliance:

	 	 	 	Applicable.
	Agreements and Acknowledgments
	 	 
	Regarding Hedging Activities:
	 	Applicable.
	Additional Acknowledgments:
	 	Applicable.
	3.

	 	Calculation Agent:
	 	Dealer.
	
 
	 	 
	 	

4. Account Details:

	 	 	 
	Dealer Payment Instructions:

Counterparty Payment Instructions:

	 	Barclays Bank PLC, New York

A/C#: 50038524

SWIFT Code: BARCUS33

f/b/o BARCGB33

Ref: Equity Derivatives

First National Bank Alaska

ABA: 125 200 060

Account Name: Alaska Communications Systems

Account No.: 1512 540 4

5. Offices:

	 	 	 
	The Office of Dealer for the Transaction is:

	Barclays Bank PLC

5 The North Colonnade

	 	

	Canary Wharf, London E14 4BB

	England

Facsimile:

Phone:

	 	

44(20) 777 36461

44(20) 777 36810

The Office of Counterparty for the Transaction is: Not applicable.

6. Notices: For purposes of this Confirmation:

	 	 	 	 	 
	Address for notices or communications to Counterparty:

	To:
	 	Alaska Communications Systems Group, Inc.
	 
	 	600 Telephone Ave.
	 
	 	Anchorage, Alaska 99503
	Attn:
	 	David Wilson
	 
	 	Title: Chief Financial Officer
	Telephone:
	 	 	907-297-3000	 
	Facsimile:
	 	 	907-297-3052	 
	Address for notices or communications to Dealer:

	To:
	 	Barclays Capital, Inc.
	 
	 	200 Park Avenue
	 
	 	New York, New York 10166
	Attention:
	 	General Counsel
	Telephone:
	 	 	212-412-4000	 
	Facsimile:
	 	 	212-412-7519	 
	with a copy to:
	 	 	 	 
	To:
	 	Barclays Capital Inc.,
	 
	 	200 Park Avenue
	 
	 	New York, 10166
	Attention:
	 	Equity Products
	and
	 	 	 	 
	To:
	 	Barclays Bank PLC,
	 
	 	5 The North Colonnade
	 
	 	Canary Wharf, London E14 4BB
	Phone:
	 	 	44(20) 777 36810	 
	Facsimile:
	 	 	44(20) 777 36461	 

7. Representations, Warranties and Agreements:

(a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Counterparty represents and warrants to and for the benefit of, and agrees with,
Dealer as follows:

(i) On the Trade Date, and as of the date of any election by Counterparty of the Share
Termination Alternative under (and as defined in) Section 8(b) below, none of Counterparty
and its officers and directors is aware of any material nonpublic information regarding
Counterparty or the Shares. On the Trade Date, each of Counterparty’s filings under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are required to be
filed from and including the ending date of Counterparty’s most recent prior fiscal year
have been filed.

(ii) (A) On the Trade Date, the Shares or securities that are convertible into, or
exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted
period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”) and
(B) Counterparty shall not engage in any “distribution,” as such term is defined in
Regulation M, other than a distribution meeting the requirements of the exceptions set forth
in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day
immediately following the Trade Date.

(iii) On the Trade Date, neither Counterparty nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any cash-settled or other
derivative instrument) purchase, offer to purchase, place any bid or limit order that would
effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent
interest, including a unit of beneficial interest in a trust or limited partnership or a
depository share) or any security convertible into or exchangeable or exercisable for
Shares, except through Dealer.

(iv) Without limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Dealer is not making any representations or warranties with
respect to the treatment of the Transaction under FASB Statements 128, 133, 149 (each as
amended), or 150, EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue
statements), under FASB’s Liabilities & Equity Project or under any other accounting
guidance.

(v) Without limiting the generality of Section 3(a)(iii) of the Agreement, the
Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

(vi) Prior to the Trade Date, Counterparty shall deliver to Dealer a resolution of
Counterparty’s board of directors authorizing the Transaction and such other certificate or
certificates as Dealer shall reasonably request.

(vii) Counterparty is not entering into this Confirmation to create actual or apparent
trading activity in the Shares (or any security convertible into or exchangeable for Shares)
or to raise or depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

(viii) Counterparty is not, and after giving effect to the transactions contemplated
hereby will not be, an “investment company” as such term is defined in the Investment
Company Act of 1940, as amended.

(ix) On each of the Trade Date and the Premium Payment Date, Counterparty would be able
to purchase the Shares hereunder in compliance with the laws of the jurisdiction of its
incorporation.

(x) The representations and warranties of Counterparty set forth in Section 3 of the
Agreement and Section 1 of the Purchase Agreement, dated April 2, 2008, between Counterparty
and Banc of America Securities LLC as the representative of the initial purchasers party
thereto (the “Purchase Agreement”) are true and correct and are hereby deemed to be repeated
to Dealer as if set forth herein.

(xi) Counterparty understands no obligations of Dealer to it hereunder will be entitled
to the benefit of deposit insurance and that such obligations will not be guaranteed by any
affiliate of Dealer or any governmental agency.

(b) Each of Dealer and Counterparty agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

(c) Each of Dealer and Counterparty acknowledges that the offer and sale of the Transaction to
it is intended to be exempt from registration under the Securities Act of 1933, as amended (the
“Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Counterparty represents and
warrants to Dealer that (i) it has the financial ability to bear the economic risk of its
investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an
“accredited investor” as that term is defined in Regulation D as promulgated under the Securities
Act, (iii) it is entering into the Transaction for its own account and without a view to the
distribution or resale thereof, and (iv) the assignment, transfer or other disposition of the
Transaction has not been and will not be registered under the Securities Act and is restricted
under this Confirmation, the Securities Act and state securities laws.

(d) Each of Dealer and Counterparty agrees and acknowledges that Dealer is a “financial
institution,” “swap participant” and “financial participant” within the meaning of Sections
101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”). The
parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which
each payment and delivery hereunder or in connection herewith is a “termination value,” “payment
amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and
a “settlement payment” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap
agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to
which each payment and delivery hereunder or in connection herewith is a “termination value,” a
“payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy
Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer
is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17),
362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

(e) Counterparty shall deliver to Dealer an opinion of counsel, dated as of the Effective Date
and reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in
Section 3(a) of the Agreement.

8. Other Provisions:

(a) Additional Termination Events. The occurrence of (i) an “Event of Default” with respect
to Counterparty under the terms of the Convertible Securities as set forth in the Indenture as
described in the Offering Memorandum under “Description of notes — Events of default” or (ii) an
Amendment Event shall be an Additional Termination Event with respect to which the Transaction is
the sole Affected Transaction and Counterparty is the sole Affected Party and Dealer shall be the
party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement.

“Amendment Event” means that Counterparty amends, modifies, supplements, waives or
obtains a waiver in respect of any term of the Indenture or the Convertible Securities
governing the principal amount, coupon, maturity, repurchase obligation of Counterparty,
redemption right of Counterparty, any term relating to conversion of the Convertible
Securities (including changes to the conversion price, conversion settlement dates or
conversion conditions), or any term that would require consent of the holders of not less
than 100% of the principal amount of the Convertible Securities to amend, in each case
without the prior consent of Dealer.

(b) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If, subject to Section 8(k) below, Dealer shall owe Counterparty any amount pursuant to
“Consequences of Merger Events” above or Sections 12.6, 12.7 or 12.9 of the Equity Definitions
(except in the event of an Insolvency, a Nationalization or a Merger Event, in each case, in which
the consideration or proceeds to be paid to holders of Shares consists solely of cash) or pursuant
to Section 6(d)(ii) of the Agreement (except in the event of an Event of Default in which
Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected
Party, that resulted from an event or events within Counterparty’s control) (a “Payment
Obligation”), Counterparty shall have the right, in its sole discretion, to require Dealer to
satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by
giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading
Day, between the hours of 9:00 A.M. and 4:00 P.M. New York City time on the relevant merger date,
Announcement Date, Early Termination Date or date of cancellation or termination for an Additional
Disruption Event, as applicable (“Notice of Share Termination”); provided that if Counterparty does
not require Dealer to satisfy its Payment Obligation by the Share Termination Alternative, Dealer
shall have the right, in its sole discretion, to satisfy its Payment Obligation by the Share
Termination Alternative, notwithstanding Counterparty’s failure to elect or election to the
contrary. Upon such Notice of Share Termination, the following provisions shall apply on the
Scheduled Trading Day immediately following the relevant merger date, Announcement Date, Early
Termination Date or date of cancellation or termination for an Additional Disruption Event, as
applicable:

	 	 	 
	Share Termination Alternative:

Share Termination Delivery

Property:

Share Termination Unit Price:

Share Termination Delivery Unit:

Failure to Deliver:

Other applicable provisions:

	 	Applicable and means that Dealer shall

deliver to Counterparty the Share

Termination Delivery Property on the date on

which the Payment Obligation would otherwise

be due pursuant to “Consequences of Merger

Events” above, Section 12.7 or 12.9 of the

Equity Definitions or Section 6(d)(ii) of

the Agreement, as applicable or such later

date as the Calculation Agent may determine

(the “Share Termination Payment Date”), in

satisfaction of the Payment Obligation.

A number of Share Termination Delivery

Units, as calculated by the Calculation

Agent, equal to the Payment Obligation

divided by the Share Termination Unit Price.

The Calculation Agent shall adjust the

Share Termination Delivery Property by

replacing any fractional portion of a

security therein with an amount of cash

equal to the value of such fractional

security based on the values used to

calculate the Share Termination Unit Price.

The value of property contained in one Share

Termination Delivery Unit on the date such

Share Termination Delivery Units are to be

delivered as Share Termination Delivery

Property, as determined by the Calculation

Agent in its discretion by commercially

reasonable means and notified by the

Calculation Agent to Dealer at the time of

notification of the Payment Obligation.

In the case of a Termination Event, Event of

Default, Delisting or Additional Disruption

Event, one Share or, in the case of an

Insolvency, Nationalization or Merger Event,

a unit consisting of the number or amount of

each type of property received by a holder

of one Share (without consideration of any

requirement to pay cash or other

consideration in lieu of fractional amounts

of any securities) in such Insolvency,

Nationalization or Merger Event. If such

Insolvency, Nationalization or Merger Event

involves a choice of consideration to be

received by holders, such holder shall be

deemed to have elected to receive the

maximum possible amount of cash.

Applicable.

If Share Termination Alternative is

applicable, the provisions of Sections 9.8,

9.9, 9.10, 9.11 (except that the

Representation and Agreement contained in

Section 9.11 of the Equity Definitions shall

be modified by excluding any representations

therein relating to restrictions,

obligations, limitations or requirements

under applicable securities laws arising as

a result of the fact that Counterparty is

the Issuer of the Shares) and 9.12 of the

Equity Definitions will be applicable as if

“Physical Settlement” applied to the

Transaction, except that all references to

“Shares” shall be read as references to

“Share Termination Delivery Units.”

(c) Disposition of Hedge Shares. Counterparty hereby agrees that if, in the good faith
reasonable judgment of Dealer, any Shares (the “Hedge Shares”) acquired by Dealer for the purpose
of hedging its obligations pursuant to the Transaction cannot be sold in the public market by
Dealer without registration under the Securities Act, Counterparty shall, at its election: (i) in
order to allow Dealer to sell the Hedge Shares in a registered offering, make available to Dealer
an effective registration statement under the Securities Act to cover the resale of such Hedge
Shares and (A) enter into an agreement, in form and substance satisfactory to Dealer, substantially
in the form of an underwriting agreement for a registered offering, (B) provide accountant’s
“comfort” letters in customary form for registered offerings of equity securities, (C) provide
disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable
to Dealer, (D) provide other customary opinions, certificates and closing documents customary in
form for registered offerings of equity securities and (E) afford Dealer a reasonable opportunity
to conduct a “due diligence” investigation with respect to Counterparty customary in scope for
underwritten offerings of equity securities; provided, however, that if Dealer, in its sole
reasonable discretion, is not satisfied with access to due diligence materials, the results of its
due diligence investigation, or the procedures and documentation for the registered offering
referred to above, then clause (ii) or clause (iii) of this Section 8(c) shall apply at the
election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private
placement, enter into a private placement agreement substantially similar to private placement
purchase agreements customary for private placements of equity securities, in form and substance
satisfactory to Dealer, including customary representations, covenants, blue sky and other
governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for Dealer
or any designated buyer of the Hedge Shares from Dealer), opinions and certificates and such other
documentation as is customary for private placements agreements, all reasonably acceptable to
Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the
Transaction that are necessary, in its reasonable judgment, to compensate Dealer for any discount
from the public market price of the Shares incurred on the sale of Hedge Shares in a private
placement); or (iii) purchase the Hedge Shares from Dealer at the VWAP Price on such Exchange
Business Days, and in the amounts, requested by Dealer. “VWAP Price” means, on any Exchange
Business Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg
VWAP” on Bloomberg page “ALSK.UQ <equity> VAP” (or any successor thereto) in respect of the
period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Exchange Business Day (or if such
volume-weighted average price is unavailable, the market value of one Share on such Exchange
Business Day, as determined by the Calculation Agent using a volume-weighted method). This
paragraph shall survive the termination, expiration or Early Unwind of the Transaction.

(d) Amendment to Equity Definitions. The following amendment shall be made to the Equity
Definitions:

Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting from
the fourth line thereof the word “or” after the word “official” and inserting a comma
therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting
the following words therefor “or (C) at Dealer’s option, the occurrence of any of the events
specified in Section 5(a)(vii) (1) through (9) of the ISDA 2002 Master Agreement with
respect to that Issuer.”

(e) Repurchase and Conversion Rate Adjustment Notices. Counterparty shall, at least 10
Scheduled Trading Days prior to effecting any repurchase of Shares or consummating or otherwise
executing or engaging in any transaction or event (a “Conversion Rate Adjustment Event”) that would
lead to an increase in the Applicable Conversion Rate (as such term is defined in the Indenture),
give Dealer a written notice of such repurchase or Conversion Rate Adjustment Event (a “Percentage
Notice”) if, following such repurchase or Conversion Rate Adjustment Event, the Notice Percentage
as determined on the date of such Percentage Notice is (i) greater than 6% and (ii) greater by 0.5%
than the Notice Percentage included in the immediately preceding Repurchase Notice (or, in the case
of the first such Repurchase Notice, greater than the Notice Percentage as of the date hereof).
The “Notice Percentage” as of any day is the fraction, expressed as a percentage, the numerator of
which is the Number of Shares and the denominator of which is the number of Shares outstanding on
such day. In the event that Counterparty fails to provide Dealer with a Repurchase Notice on the
day and in the manner specified in this Section 8(e) then Counterparty agrees to indemnify and hold
harmless Dealer, its affiliates and their respective directors, officers, employees, agents and
controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any
and all losses, claims, damages and liabilities (or actions in respect thereof), joint or several,
to which such Indemnified Party may become subject under applicable securities laws, including
without limitation, Section 16 of the Exchange Act, relating to or arising out of such failure. If
for any reason the foregoing indemnification is unavailable to any Indemnified Party or
insufficient to hold harmless any Indemnified Party, then Counterparty shall contribute, to the
maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result
of such loss, claim, damage or liability. In addition, Counterparty will reimburse any Indemnified
Party for all reasonable expenses (including reasonable counsel fees and expenses) as they are
incurred (after notice to Counterparty) in connection with the investigation of, preparation for or
defense or settlement of any pending or threatened claim or any action, suit or proceeding arising
therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim,
action, suit or proceeding is initiated or brought by or on behalf of Counterparty. This indemnity
shall survive the completion of the Transaction contemplated by this Confirmation and any
assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement
shall inure to the benefit of any permitted assignee of Dealer.

(f) Transfer and Assignment. Either party may transfer any of its rights or obligations under
the Transaction with the prior written consent of the non-transferring party, such consent not to
be unreasonably withheld. For the avoidance of doubt, Dealer may condition its consent on any of
the following, without limitation: (i) the receipt by Dealer of opinions and documents reasonably
satisfactory to Dealer in connection with such assignment, (ii) such assignment being effected on
terms reasonably satisfactory to Dealer with respect to any legal and regulatory requirements
relevant to Dealer, (iii) Counterparty continuing to be obligated to provide notices hereunder
relating to the Convertible Securities and continuing to be obligated with respect to “Disposition
of Hedge Shares” and “Repurchase and Conversion Rate Adjustment Notices” above, (iv) such
assignment being made to a U.S. person (as defined in the Internal Revenue Code of 1986, as
amended), (v) Dealer not, as a result of such assignment, being required to pay the transferee on
any payment date an amount under Section 2(d)(i)(4) of the Agreement greater than an amount that
Dealer would have been required to pay to Counterparty in the absence of such transfer and
assignment, (vi) no Event of Default, Potential Event of Default or Termination Event occurring as
a result of such assignment and (vi) Counterparty being responsible for all reasonable costs and
expenses, including reasonable counsel fees, incurred by Dealer in connection with such assignment.
In addition, Dealer may transfer or assign without any consent of Counterparty its rights and
obligations hereunder and under the Agreement, in whole or in part, to (i) any of its affiliates,
(ii) any entities sponsored or organized by, or on behalf of or for the benefit of Dealer or (iii)
any leading equity derivatives dealer; provided that, in each case, the transferee or assignee has
a rating for its long term, unsecured and unsubordinated indebtedness equal to or better than the
lesser of (A) the credit rating of Dealer at the time of the transfer and (B) A- by Standard and
Poor’s Ratings Services or its successor (“S&P”), or A3 by Moody’s Investors Service (“Moody’s”)
or, if either S&P or Moody’s ceases to rate such debt, at least an equivalent rating or better by a
substitute agency rating mutually agreed by Counterparty and Dealer. At any time at which any
Excess Ownership Position exists, or a Hedging Disruption has occurred and is continuing, if
Dealer, in its discretion, is unable to effect a transfer or assignment to a third party in
accordance with the requirements set forth above after using its commercially reasonable efforts on
pricing terms reasonably acceptable to Dealer and within time period reasonably acceptable to
Dealer such that an Excess Ownership Position or a Hedging Disruption, as the case may be, no
longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with
respect to a portion (the “Terminated Portion”) of the Transaction, such that such Excess Ownership
Position or Hedging Disruption, as the case may be, no longer exists. In the event that Dealer so
designates an Early Termination Date with respect to a portion of the Transaction, a payment or
delivery shall be made pursuant to Section 6 of the Agreement and Section 8(b) of this Confirmation
as if (i) an Early Termination Date had been designated in respect of a Transaction having terms
identical to the Terminated Portion of the Transaction, (ii) Counterparty shall be the sole
Affected Party with respect to such partial termination and (iii) such portion of the Transaction
shall be the only Terminated Transaction. “Excess Ownership Position” means any of the following:
(i) the Equity Percentage exceeds 8.0%, (ii) the Option Equity Percentage exceeds 14.5% or (iii)
Dealer or any “affiliate” or “associate” of Dealer would own in excess of 13% of the outstanding
Shares for purposes of Section 203 of the Delaware General Corporation Law. The “Equity
Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is
the number of Shares that Dealer and any of its affiliates or any other person subject to
aggregation with Dealer, for purposes of the “beneficial ownership” test under Section 13 of the
Exchange Act, or of any “group” (within the meaning of Section 13) of which Dealer is or may be
deemed to be a part, beneficially owns (within the meaning of Section 13 of the Exchange Act) on
such day and (B) the denominator of which is the number of Shares outstanding on such day. The
“Option Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the
numerator of which is the Number of Shares on such day and (B) the denominator of which is the
number of Shares outstanding on such day.

(g) Staggered Settlement. Dealer may, by notice to Counterparty on or prior to any Settlement
Date (a “Nominal Settlement Date”), elect to deliver the Shares on two or more dates (each, a
“Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date as follows:

(i) in such notice, Dealer will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement Date, but not
prior to the beginning of the related Settlement Averaging Period) or delivery times and how
it will allocate the Shares it is required to deliver under “Delivery Obligation” (above)
among the Staggered Settlement Dates or delivery times; and

(ii) the aggregate number of Shares that Dealer will deliver to Counterparty hereunder
on all such Staggered Settlement Dates and delivery times will equal the number of Shares
that Dealer would otherwise be required to deliver on such Nominal Settlement Date.

(h) Right to Extend. Dealer may postpone any Potential Exercise Date or postpone or extend
any other date of valuation or delivery by Dealer, with respect to some or all of the relevant
Options (in which event the Calculation Agent shall make appropriate adjustments to the Delivery
Obligation for such Options), if Dealer determines, based on advice of counsel, that such extension
is reasonably necessary or appropriate to enable Dealer to effect its hedging, hedge unwind or
settlement activity hereunder in a manner that would, if Dealer were the Issuer or an affiliated
purchaser of the Issuer, be in compliance with applicable legal, regulatory or self-regulatory
requirements, and would be in compliance with related policies and procedures applicable to Dealer.

(i) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Counterparty and each of its employees, representatives, or other agents may disclose
to any and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Counterparty relating to such tax treatment and tax structure.

(j) Designation by Dealer. Notwithstanding any other provision in this Confirmation to the
contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other
securities to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell,
receive or deliver such shares or other securities and otherwise to perform Dealer obligations in
respect of the Transaction and any such designee may assume such obligations. Dealer shall be
discharged of its obligations to Counterparty to the extent of any such performance.

(k) Netting and Set-off. Notwithstanding any provision of the Agreement (including without
limitation Section 6(f) thereof) and this Confirmation (including without limitation this Section
8(k)) or any other agreement between the parties to the contrary, (A) neither party shall net or
set off its obligations under the Transaction, if any, against its rights against the other party
under any other transaction or instrument, provided that either party may net and set off any
rights of Counterparty against Dealer arising under the Transaction only against obligations of
Counterparty to Dealer arising under any transaction or instrument if such transaction or
instrument does not convey rights to Dealer senior to the claims of common stockholders in the
event of Counterparty’s bankruptcy and (B) in the event of the bankruptcy or liquidation of
Counterparty, neither party shall have the right to set off any obligation that it may have to the
other party under the Transaction against any obligation such other party may have to it under the
Agreement, this Confirmation or any other agreement between the parties hereto, by operation of law
or otherwise. The relevant party will give notice to the other party of any netting or set off
effected under this provision.

(l) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy. For the avoidance of doubt, the parties
agree that the preceding sentence shall not apply at any time other than during Counterparty’s
bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations
under this Confirmation or the Agreement.

(m) Early Unwind. In the event the sale by Counterparty of the Convertible Securities is not
consummated with the initial purchasers thereof pursuant to the Purchase Agreement for any reason
by the close of business in New York on April 8, 2008 (or such later date as agreed upon by the
parties, which in no event shall be later than April 22, 2008) (April 8, 2008 or such later date
being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”),
on the Early Unwind Date and (i) the Transaction and all of the respective rights and obligations
of Dealer and Counterparty under the Transaction shall be cancelled and terminated, and any premium
paid by Counterparty to Dealer hereunder shall promptly be returned to Counterparty (net of any
amounts payable by Counterparty under (ii) below) and (ii) Counterparty shall pay to Dealer an
amount in cash equal to the aggregate amount of costs and expenses relating to the unwinding of
Dealer’s hedging activities in respect of the Transaction (including market losses incurred in
reselling any Shares purchased by Dealer or its affiliates in connection with such hedging
activities); provided, however, that Counterparty shall not be required to make any such payments
under this clause (ii) if the sale of the Convertible Securities is not consummated due to a breach
or default on the part of an initial purchaser under the Purchase Agreement. Following such
termination, cancellation and payment, each party shall be released and discharged by the other
party from and agrees not to make any claim against the other party with respect to any obligations
or liabilities of either party arising out of and to be performed in connection with the
Transaction either prior to or after the Early Unwind Date. Dealer and Counterparty represent and
acknowledge to the other that upon an Early Unwind and following the payment referred to above, all
obligations with respect to the Transaction shall be deemed fully and finally discharged.

(n) Tax Matters. Pursuant to U.S. Treasury Regulation Section 1.1275-6(e), Counterparty hereby
identifies this Transaction, and the Options represented hereby, and the Convertible Securities as
an “integrated transaction”, within the meaning of U.S. Treasury Regulation Section 1.1275-6(c)(1),
whereby the integration of the Convertible Securities and this Transaction results in a synthetic
debt instrument issued at a discount which provides for interest payments equal to the interest
payments on the Convertible Securities and which matures on March 1, 2013.

(o) Miscellaneous.

(A) Counterparty and, on behalf of Dealer, Agent, each is aware of and agrees to be bound
by the rules of the Financial Industry Regulatory Authority (“FINRA”) applicable to option
trading and is aware of and agrees not to violate, either alone or in concert with others,
the position or exercise limits established by the FINRA. Notwithstanding the foregoing,
nothing herein shall constitute a submission to the jurisdiction of the FINRA, including
its arbitration provisions, by Counterparty or Dealer.

(B) The time of dealing will be confirmed by Dealer upon written request. The Agent will
furnish to Counterparty upon written request a statement as to the source and amount of any
remuneration received or to be received by the Agent in connection with the Transaction.
Dealer is regulated by the Financial Services Authority.

(C) Dealer is acting for its own account in respect of this Transaction and has instructed
the Agent to act as its agent pursuant to instructions of Dealer.

(D) Each of the parties hereto understands and acknowledges that the Transaction has not
and will not be registered under the Securities Act.

(p) Waiver of Trial by Jury. EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON
ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS
AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

(q) Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

1

Please confirm that the foregoing correctly sets forth the terms and conditions of our
agreement with respect to the Transaction by executing this Confirmation and returning it to us by
facsimile marked for the attention of Equity Derivatives Incoming Team, OTC Transaction Management,
on +44 (020) 7516 8226. If you have any queries regarding the content of the Confirmation, please
do not hesitate to contact us on +44 (020) 7773 0034 or via e-mail address:
EquityDerivsIncoming@barcap.com. Your failure to respond to this Confirmation shall not affect the
validity or enforceability of this Transaction against you.

Yours sincerely,

For and on behalf of:

BARCLAYS CAPITAL INC.,

as Agent for BARCLAYS BANK PLC

	 	 	 
	
 
	 	By: /s/

Name:
	
 
	 	Authorised Signatory
	Confirmed as of the

	 	

	date first above written:

	ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

	By: /s/ David Wilson

	 	

	 

	Name: David Wilson

	 	

	Title: Senior Vice President and

	Chief Financial Officer

	 	

	To:

From:

	 	April 4, 2008

Alaska Communications Systems Group, Inc.

600 Telephone Ave.

Anchorage, Alaska 99503

Attn:David Wilson

Telephone:907-297-3000

Facsimile:907-297-3052

Bank of America, N.A.

c/o Banc of America Securities LLC

9 West 57th Street

New York, NY 10019

Attn: John Servidio

Telephone:212-847-6527

Facsimile:212-230-8610
	Re:

	 	Convertible Bond Hedge Transaction

(Transaction Reference Number: NY-34145)

Ladies and Gentlemen:

The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below, as
amended on April 4, 2008 (the “Transaction”), between Bank of America, N.A. (“Dealer”) and Alaska
Communications Systems Group, Inc. (“Counterparty”). This communication constitutes a
“Confirmation” as referred to in the Agreement specified below.

8. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA
Equity Derivatives Definitions (the “Equity Definitions” and together with the 2006 Definitions,
the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2006 Definitions and the
Equity Definitions, the Equity Definitions will govern. Certain defined terms used herein have the
meanings assigned to them in the Offering Memorandum dated April 2, 2008 (the “Offering
Memorandum”) and the Indenture to be dated on or about April 8, 2008, by and between Counterparty
and The Bank of New York as trustee (the “Indenture”), each relating to the USD125,000,000
principal amount of 5.75% convertible notes due March 1, 2013 (the “Convertible Securities”),
including the Convertible Securities issued pursuant to the initial purchasers’ exercise of their
option to purchase additional Convertible Securities pursuant to the Purchase Agreement (as defined
below). Counterparty shall provide Dealer a copy of the executed Indenture on the Effective Date.
In the event of any inconsistency between the terms defined in the Indenture or defined in the
Offering Memorandum and this Confirmation, this Confirmation shall govern. For the avoidance of
doubt, references herein to provisions of the Indenture are based on the description of the
Convertible Securities set forth in the Offering Memorandum. If any relevant provisions of the
Indenture differ in any material respect from those described in the Offering Memorandum, the
parties will, if appropriate, amend this Confirmation in good faith to preserve the economic intent
of the parties. The parties further acknowledge that if the Indenture is amended, modified or
supplemented following its execution, any such amendment, modification or supplement will be
disregarded for purposes of this Confirmation unless the parties agree otherwise in writing.

This Confirmation evidences a complete and binding agreement between Dealer and Counterparty
as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to, an agreement in the form of the ISDA 2002 Master
Agreement (the “Agreement”), as if Dealer and Counterparty had executed an agreement in such form
(without any Schedule but with the elections set forth in this Confirmation) on the Trade Date.
For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

9. The Transaction constitutes a Share Option Transaction for purposes of the Equity
Definitions. The terms of the particular Transaction to which this Confirmation relates are as
follows:

	 	 	 
	General Terms:

	 	

	Trade Date:

	 	April 2, 2008.

	 	 	 	Effective Date: The closing date of the initial issuance of the Convertible Securities.

	 	 	 
	Option Type:

Seller:

Buyer:

	 	Call.

Dealer.

Counterparty.

	 	 	 	Shares: The Common Stock of Counterparty, par value USD0.01 per share (Ticker Symbol:
“ALSK”).

	 	 	 	Number of Options: The number of Convertible Securities in denominations of USD1,000
principal amount issued by Counterparty on the closing date for the initial issuance of
the Convertible Securities (including the Convertible Securities issued pursuant to the
initial purchasers’ exercise of their option to purchase additional Convertible
Securities pursuant to the Purchase Agreement (as defined below)).

	 	 	 	Number of Shares: As of any date, the product of the Number of Options and the Conversion
Rate.

	 	 	 	Applicable Percentage: 25%.

	 	 	 	Option Entitlement: As of any date, a number of Shares per Option equal to the Conversion
Rate.

	 	 	 	Strike Price: As of any date, USD1,000 divided by the Option Entitlement.

	 	 	 	Conversion Rate: As of any date, the “Applicable Conversion Rate” (as defined in the
Indenture as described in the Offering Memorandum under “Description of notes  ̄
Conversion rights  ̄ General”) as of such date, but without regard to any adjustments to
the “Applicable Conversion Rate” as set forth in the section of the Indenture
containing the provision described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Adjustment to shares delivered upon conversion upon certain
fundamental changes” (a “Fundamental Change Adjustment”) or any discretionary
adjustment as set forth in the section of the Indenture containing the provisions
described in the sixth to last paragraph in the Offering Memorandum under “Description
of notes  ̄ Conversion rights  ̄ Conversion rate adjustments” (i.e., the paragraph
commencing with “We are permitted to increase . . .”) (a “Discretionary Adjustment”).

	 	 	 
	Premium:

Premium Payment Date:

	 	USD5,107,812.50.

The Effective Date.

	 	 	 	Exchange: The NASDAQ Global Select Market of the Nasdaq Stock Market, Inc.

	 	 	 
	Related Exchange:

	 	All Exchanges.
	Procedures for Exercise:

	 	

	Potential Exercise Dates:

	 	Each Conversion Date.

	 	 	 	Conversion Date: Each “Conversion Date” (as defined in the Indenture as described in the
Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄ Conversion
procedures”) occurring during the period from and excluding the Trade Date to but
excluding the Expiration Date, for Convertible Securities that are submitted for
conversion on such Conversion Date in accordance with the terms of the Indenture (such
Convertible Securities, each in denominations of USD1,000 principal amount, the
“Relevant Convertible Securities” for such Conversion Date).

	 	 	 	Required Exercise on

	 	 	 	Conversion Dates: On each Conversion Date, a number of Options equal to the number of
Relevant Convertible Securities for such Conversion Date in denominations of USD1,000
principal amount shall be automatically exercised, subject to “Notice of Exercise”
below.

	 	 	 	Expiration Date: March 1, 2013.

	 	 	 	Automatic Exercise: As provided above under “Required Exercise on Conversion Dates”.

	 	 	 	Notice Deadline: In respect of any exercise of Options hereunder on any Conversion Date, the
Scheduled Trading Day prior to the first Scheduled Valid Day of the Settlement
Averaging Period relating to the Convertible Securities converted on the Conversion
Date occurring on the relevant Exercise Date; provided that in the case of any exercise
of Options hereunder in connection with the conversion of any Relevant Convertible
Securities on any Conversion Date occurring during the period starting on, and
including, November 1, 2012 and ending on, and including, the “Scheduled Trading Day”
(as defined in the Indenture as described in the Offering Memorandum under “Description
of notes  ̄ Conversion rights  ̄ Settlement upon conversion”) immediately preceding the
“Maturity Date” (as defined in the Indenture as described in the Offering Memorandum
under “Description of notes  ̄ General”) (the “Final Conversion Period”), the Notice
Deadline shall be the “Scheduled Trading Day” immediately preceding the “Maturity
Date”.

	 	 	 	Notice of Exercise: Notwithstanding anything to the contrary in the Equity Definitions,
Dealer shall have no obligation to make any payment or delivery in respect of any
exercise of Options hereunder unless Counterparty notifies Dealer in writing prior to
5:00 PM, New York City time, on the Notice Deadline in respect of such exercise of (i)
the number of Options being exercised on such Exercise Date, (ii) the Conversion Date
and (iii) the applicable settlement method under the Indenture and “Specified Dollar
Amount” (as defined in the Indenture as described in the Offering Memorandum under
“Description of notes  ̄ Conversion rights  ̄ Settlement upon conversion”); provided that
in the case of any exercise of relevant Options in connection with the conversion of
any Relevant Convertible Securities on any Conversion Date occurring during the Final
Conversion Period, the contents of such notice shall be as set forth in clause (i)
above. Counterparty acknowledges its responsibilities under applicable securities
laws, and in particular Section 9 and Section 10(b) of the Exchange Act (as defined
below) and the rules and regulations thereunder, in respect of any election of a
settlement method or a “Specified Dollar Amount” with respect to the Convertible
Securities. For the avoidance of doubt, if Counterparty fails to give such notice when
due in respect of any exercise of Options hereunder, (i) such notice (and the related
exercise of Options) shall be effective for Relevant Convertible Securities with a
Conversion Date prior to the Final Conversion Period if given after the Notice
Deadline, but prior to 5:00 PM New York City time, on the fifth Scheduled Trading Day
following the Notice Deadline, in which event the Calculation Agent shall have the
right to adjust the Delivery Obligation as appropriate to reflect the additional costs
(including, but not limited to, hedging mismatches and market losses) and expenses
incurred by Dealer in connection with its hedging activities (including the unwinding
of any hedge position) as a result of Dealer not having received such notice on or
prior to the Notice Deadline, (ii) in respect of any exercise of Options relating to
the conversion of any Relevant Convertible Securities with a Conversion Date during the
Final Conversion Period, Dealer’s obligation to make any payment or delivery with
respect to such exercise shall be permanently extinguished, and late notice shall not
cure such failure and (iii) in any other case of late notice, the Calculation Agent
shall determine the amount of Shares and/or cash Dealer is obligated to deliver in
respect of such Options and the settlement date therefor.

	 	 	 	Final Period Start Date Election: Counterparty shall notify Dealer in writing of the
“Specified Dollar Amount” for any Conversion Date occurring on or after August 2, 2012
(the “Final Period Start Date”) by 5:00 PM New York City time, on August 1, 2012; it
being understood that Counterparty shall notify Dealer of the same “Specified Dollar
Amount” that is applicable to conversions of the Convertible Securities on and after
the Final Period Start Date and Counterparty may elect to settle its conversion
obligation under the Indenture by cash, Shares or a combination of cash and Shares.

	 	 	 
	Dealer’s Telephone Number

and Telex and/or Facsimile Number

and Contact Details for purpose of

Giving Notice:

	 	

To be provided by Dealer.

	 	 	Settlement Terms:

	 	 	 	Settlement Method: Net Share Extended Settlement, Net Share Regular Settlement, Combination
Settlement or Cash Settlement consistent with the settlement method elected by
Counterparty for the Relevant Convertible Securities and subject to the provisions
below.

	 	 	 	Net Share Extended Settlement: Net Share Extended Settlement shall apply if either
(i) Counterparty has elected or been deemed to have elected to deliver only Shares to
satisfy the “Conversion Obligation” (as defined in the Indenture as described in the
Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄ Settlement upon
conversion”) in connection with the conversion of the Relevant Convertible Securities
or (ii) Counterparty has elected to deliver a combination of Shares and cash to satisfy
the “Conversion Obligation” in connection with the conversion of the Relevant
Convertible Securities and the applicable “Specified Dollar Amount” (as defined in the
Indenture as described in the Offering Memorandum under “Description of notes  ̄
Conversion rights  ̄ Settlement upon conversion”) with respect to such conversion is
less than $1,000.

	 	 	 	Net Share Regular Settlement: Net Share Regular Settlement shall apply if (i)
Counterparty has elected or been deemed to have elected to deliver a combination of
Shares and cash to satisfy the “Conversion Obligation” (as defined in the Indenture as
described in the Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄
Settlement upon conversion”) in connection with the conversion of the Relevant
Convertible Securities and (ii) the applicable “Specified Dollar Amount” (as defined in
the Indenture as described in the Offering Memorandum under “Description of notes  ̄
Conversion rights  ̄ Settlement upon conversion”) with respect to such conversion is
equal to $1,000.

	 	 	 	Combination Settlement: Combination Settlement shall apply if (i) Counterparty has elected
to deliver a combination of Shares and cash to satisfy the “Conversion Obligation” (as
defined in the Indenture as described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Settlement upon conversion”) in connection with the
conversion of the Relevant Convertible Securities and (ii) the applicable “Specified
Dollar Amount” (as defined in the Indenture as described in the Offering Memorandum
under “Description of notes  ̄ Conversion rights  ̄ Settlement upon conversion”) with
respect to such conversion is greater than $1,000.

	 	 	 	Cash Settlement: Cash Settlement shall apply if Counterparty has elected to deliver
only cash to satisfy the “Conversion Obligation” (as defined in the Indenture as
described in the Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄
Settlement upon conversion”) in connection with the conversion of the Relevant
Convertible Securities.

	 	 	 	Delivery Obligation: In respect of an Exercise Date occurring on a Conversion Date, in lieu
of the obligations set forth in Sections 8.1 and 9.1 of the Equity Definitions, and
subject to “Notice of Exercise” above, Dealer will deliver to Counterparty, on the
relevant Settlement Date,

(a) if Net Share Extended Settlement applies, the
Applicable Percentage of a number of Shares equal to
the Net Shares (calculated based on the Settlement
Averaging Period for Net Share Extended Settlement)
in respect of the relevant Options exercised on such
Exercise Date. In no event will the Net Shares be
less than zero.

(b) if Net Share Regular Settlement applies, the
Applicable Percentage of a number of Shares equal to
the Net Shares (calculated based on the Settlement
Averaging Period for Net Share Regular Settlement) in
respect of the relevant Options exercised on such
Exercise Date. In no event will the Net Shares be
less than zero.

(c) if Combination Settlement applies, the Applicable
Percentage of an amount of cash and a number of
Shares, if any, equal to the Combination Amount.

(d) if Cash Settlement applies, the Applicable
Percentage of an amount of cash equal to the
Conversion Value in excess of $1,000.

If such exercise relates to the conversion of
Relevant Convertible Securities in connection with
which holders thereof are entitled to receive
additional Shares and/or cash pursuant to the
adjustments to the “Applicable Conversion Rate”
pursuant to a Fundamental Change Adjustment, then,
notwithstanding the foregoing, the Delivery
Obligation shall include the Applicable Percentage of
such additional Shares and/or cash, except that the
Delivery Obligation shall be capped so that the value
of the Delivery Obligation per Option (with the value
of any Shares included in the Delivery Obligation
determined by the Calculation Agent using the VWAP
Price on the last day of the relevant Settlement
Averaging Period) does not exceed the amount as
determined by the Calculation Agent that would be
payable by Dealer pursuant to Section 6 of the
Agreement if such Conversion Date were an Early
Termination Date resulting from an Additional
Termination Event with respect to which the
Transaction (except that, for purposes of determining
such amount the Number of Options shall be deemed to
be equal to the number of Options exercised on such
Exercise Date) was the sole Affected Transaction and
Counterparty was the sole Affected Party (determined
without regard to Section 8(b) of this Confirmation).

Dealer will deliver cash in lieu of any fractional
Shares to be delivered with respect to any Net Shares
or Combination Amount valued at the VWAP Price for
the last Valid Day of the relevant Settlement
Averaging Period.

If Counterparty is permitted to or required to
exercise discretion under the terms of the Indenture
with respect to any determination, calculation or
adjustment relevant to conversion of the Convertible
Securities, Counterparty shall consult with Dealer
with respect thereto and shall make such
determination, calculation or adjustment for purposes
of the Convertible Securities in a commercially
reasonable manner.

	 	 	 	Net Shares: In respect of any Option exercised on any Exercise Date corresponding
to a Conversion Date, a number of Shares equal to the sum of, for each Valid Day during
the applicable Settlement Averaging Period for such Option, (i) the Option Entitlement
on such Valid Day multiplied by (ii) (A) the VWAP Price on such Valid Day less the
Strike Price, divided by (B) such VWAP Price, divided by (iii) the number of Valid Days
in such Settlement Averaging Period; provided however that if the calculation contained
in clause (A) above results in a negative number, such number shall be replaced with
the number “zero”.

	 	 	 	Valid Day: A day on which (i) trading in the Shares generally occurs on the Exchange
or, if the Shares are not then listed on the Exchange, on the principal other U.S.
national or regional securities exchange on which the Shares are then listed or, if the
Shares are not then listed on a U.S. national or regional securities exchange, in the
principal other market on which the Shares are then traded and (ii) there is no Market
Disruption Event.

	 	 	 	Scheduled Valid Day: A day on which trading in the Shares is scheduled to occur on the
principal U.S. national or regional securities exchange or market on which the Shares
are listed or admitted for trading. If the Shares are not so listed or admitted for
trading, “Scheduled Valid Day” means a New York Business Day.

	 	 	 	Market Disruption Event: Section 6.3(a) of the Equity Definitions is hereby amended by
deleting the words “during the one hour period that ends at the relevant Valuation
Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the
case may be,” in clause (ii) thereof, and by amending and restating clause (a)(iii)
thereof in its entirety to read as follows: “(iii) an Early Closure that the
Calculation Agent determines is material.”

Section 6.3(d) of the Equity Definitions is hereby
amended by deleting the remainder of the provision
following the term “Scheduled Closing Time” in the
fourth line thereof.

	 	 	 	VWAP Price: On any Valid Day, the per Share volume-weighted average price as
displayed under the heading “Bloomberg VWAP” on Bloomberg page “ALSK.UQ <equity>
VAP” (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m.
(New York City time) on such Valid Day (or if such volume-weighted average price is
unavailable, the market value of one Share on such Valid Day, as determined by the
Calculation Agent using a volume-weighted average price method).

	 	 	 	Settlement Averaging Period: In respect of any Option exercised on any Exercise Date
corresponding to a Conversion Date,

(x) with respect to an Option with a Conversion Date
occurring prior to the Final Period Start Date, (i)
if Net Share Extended Settlement applies, the one
hundred twenty (120) consecutive Valid Days
commencing on and including the third Valid Day
following such Conversion Date or (ii) if Net Share
Regular Settlement, Combination Settlement or Cash
Settlement applies, the sixty (60) consecutive Valid
Days commencing on and including the third Valid Day
following such Conversion Date, or

(y) if Net Share Extended Settlement applies with
respect to such Option with a Conversion Date
occurring on or after the Final Period Start Date,
the one hundred twenty (120) consecutive Valid Days
commencing on, and including, the one hundred twenty
second (122nd) Scheduled Valid Day
immediately prior the Expiration Date; or

(z) if either Net Share Regular Settlement,
Combination Settlement or Cash Settlement applies
with respect to such Option with a Conversion Date
occurring on or after the Final Period Start Date,
(A) if the Conversion Date occurs during the Final
Conversion Period, the sixty (60) consecutive Valid
Days commencing on, and including, the sixty second
(62nd) Scheduled Valid Day immediately
prior to the Expiration Date or (B) if the Conversion
Date occurs on or after the Final Period Start Date
but before the Final Conversion Period, the sixty
(60) consecutive Valid Days commencing on and
including the third Valid Day following such
Conversion Date.

	 	 	 	Combination Amount: In respect of any Option exercised on any Exercise Date corresponding to
a Conversion Date, (A) an amount of cash equal to the difference between (i) the lesser
of (x) the applicable “Specified Dollar Amount” (as defined in the Indenture as
described in the Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄
Settlement upon conversion”) and (y) the Conversion Value and (ii) $1,000, and (B) to
the extent the Conversion Value exceeds the applicable “Specified Dollar Amount”, a
number of Shares equal to the sum of the Daily Share Amounts for each of the Valid Days
during the applicable Settlement Averaging Period; provided, however, that if the
calculation contained in clause (A) above results in a negative number, such number
shall be replaced with the number “zero”.

	 	 	 	Daily Share Amount: Means, for each Valid Day during the applicable Settlement
Averaging Period, (A) the greater of (i) zero and (ii) the Option Entitlement on such
Valid Day minus the quotient of (x) the applicable “Specified Dollar Amount” (as
defined in the Indenture as described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Settlement upon conversion”) divided by (y) the VWAP Price
on such Valid Day divided by (B) 60.

	 	 	 	Conversion Value: In respect of any Option exercised on any Exercise Date corresponding to a
Conversion Date, an amount equal to the sum of, for each Valid Day during the
applicable Settlement Averaging Period for such Option, (A) the product of (i) the
Option Entitlement on such Valid Day and (ii) the VWAP Price on such Valid Day divided
by (B) 60.

	 	 	 	Settlement Date: In respect of any Option exercised on any Exercise Date corresponding to a
Conversion Date, the date Shares and/or cash will be delivered with respect to the
Convertible Securities related to such Option under the terms of the Indenture;
provided however that the Settlement Date shall not be prior to the date one Settlement
Cycle following the final day of the relevant Settlement Averaging Period.

	 	 	 	Other Applicable Provisions: To the extent Dealer is obligated to deliver Shares
hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 (except that the
Representation and Agreement contained in Section 9.11 of the Equity Definitions shall
be modified by excluding any representations therein relating to restrictions,
obligations, limitations or requirements under applicable securities laws arising as a
result of the fact that Counterparty is the Issuer of the Shares) and 9.12 of the
Equity Definitions will be applicable as if “Physical Settlement” applied to the
Transaction.

	 	 	 	Restricted Certificated Shares: Notwithstanding anything to the contrary in the Equity
Definitions, Dealer may, in whole or in part, deliver Shares required to be delivered
to Counterparty hereunder in certificated form in lieu of delivery through the
Clearance System. With respect to such certificated Shares, the Representation and
Agreement contained in Section 9.11 of the Equity Definitions shall be modified by
deleting the remainder of the provision after the word “encumbrance” in the fourth line
thereof.

	 	 	Share Adjustments:

	 	 	 	Method of Adjustment: Notwithstanding Section 11.2 of the Equity Definitions, upon the
occurrence of any event or condition set forth in the sections of the Indenture
containing the provisions described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Conversion rate adjustments” other than any event or
condition that would result in a Fundamental Change Adjustment or a Discretionary
Adjustment (each, an “Adjustment Event”), the Calculation Agent shall make a
corresponding adjustment, if necessary, to the terms relevant to the exercise,
settlement, payment or other terms of the Transaction. Immediately upon the occurrence
of any Adjustment Event, Counterparty shall notify the Calculation Agent of such
Adjustment Event; and once the adjustments to be made to the terms of the Indenture and
the Convertible Securities in respect of such Adjustment Event have been determined,
Counterparty shall immediately notify the Calculation Agent in writing of the details
of such adjustment.

	 	 	 	Dividend Adjustment: If at any time during the period from, but excluding, the Trade Date
to, and including, the later of the Expiration Date and the last day of the final
Settlement Averaging Period, an ex-dividend date for any cash dividend or distribution
occurs with respect to the Shares (an “Ex-Dividend Date”) and that dividend or
distribution is less than the Regular Dividend on a per Share basis, then the
Calculation Agent will adjust any variable relevant to the exercise, settlement,
payment or other terms of the Transaction to preserve the fair value of the Transaction
to Dealer after taking into account such dividend or distribution. If no Ex-Dividend
Date occurs within any regular quarterly dividend period, Counterparty shall be deemed
to have paid a cash dividend in an amount of zero with an Ex-Dividend Date occurring on
the last Exchange Business Day of such regular quarterly dividend period.

	 	 	 	Regular Dividend: USD 0.215 per quarter.

	 	 	Extraordinary Events:

	 	 	 	Merger Events: Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event”
means the occurrence of any event or condition set forth in the section of the
Indenture containing the provisions described in the eighth to last paragraph in the
Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄ Conversion rate
adjustments” (i.e., the paragraph commencing with “In the event of: any
reclassification . . .”).

	 	 	 	Consequences of Merger Events: Notwithstanding Section 12.2 of the Equity Definitions, upon
the occurrence of a Merger Event, the Calculation Agent shall make the corresponding
adjustment in respect of any adjustment under the Indenture to any one or more of the
nature of the Shares, the Number of Options and any other variable relevant to the
exercise, settlement, payment or other terms of the Transaction; provided however that
such adjustment shall be made without regard to any adjustment to the “Applicable
Conversion Rate” pursuant to a Fundamental Change Adjustment or a Discretionary
Adjustment; and provided further that the Calculation Agent may limit or alter any such
adjustment referenced in this paragraph so that the fair value of the Transaction to
Dealer is not reduced as a result of such adjustment in the case of a “Fundamental
Change” (as defined in the Indenture as described in the Offering Memorandum under
“Description of notes  ̄ Fundamental change permits holders to require us to purchase
notes”) described in clauses (1) or (2) of the definition thereof (for the avoidance of
doubt, determined without regard to the 90% publicly traded securities carve-out); and
provided further that if, with respect to a Merger Event, the consideration for the
Shares includes (or, at the option of a holder of Shares, may include) shares of an
entity or person not organized under the laws of the United States, any State thereof
or the District of Columbia, Cancellation and Payment (Calculation Agent Determination)
shall apply.

	 	 	 	Notice of Merger Consideration: Upon the occurrence of a Merger Event that causes the Shares
to be converted into the right to receive more than a single type of consideration
(determined based in part upon any form of election of the holders of the Shares),
Counterparty shall reasonably promptly (but, in any event, prior to the date on which
such Merger Event is consummated) notify the Calculation Agent of (i) the weighted
average of the types and amounts of consideration to be received by the holders of
Shares entitled to receive cash, securities or other property or assets with respect to
or in exchange for such Shares in any Merger Event who affirmatively make such an
election and (ii) the details of the adjustment to be made under the Indenture in
respect of such Merger Event.

Nationalization, Insolvency

	 	•	 	r Delisting: Cancellation and Payment (Calculation Agent Determination); provided
that, in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions,
it will also constitute a Delisting if the Exchange is located in the United States and
the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York
Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or the
NASDAQ Global Market (or their respective successors); if the Shares are immediately
re-listed, re-traded or re-quoted on any such exchange or quotation system, such
exchange or quotation system shall thereafter be deemed to be the Exchange.

	 	 	 	 	 
	Additional Disruption Events:
	 	 
	Hedging Party:

	 	(a)Change in Law:

(b)Failure to Deliver:

(c)Insolvency Filing:

(d)Hedging Disruption:

(e)Increased Cost of Hedging:
	 	Applicable.

Applicable.

Applicable.

Applicable.

Applicable.

For all applicable Additional Disruption Events, Dealer.
	Determining Party:
	 	For all applicable Additional Disruption Events, Dealer.
	Acknowledgments:

	 	

	 	

	Non-Reliance:

	 	 	 	Applicable.
	Agreements and Acknowledgments
	 	 
	Regarding Hedging Activities:
	 	Applicable.
	Additional Acknowledgments:
	 	Applicable.
	10.

	 	Calculation Agent:
	 	Dealer.
	
 
	 	 
	 	

11. Account Details:

	 	 	 
	Dealer Payment Instructions:

Counterparty Payment Instructions:

	 	Bank of America

New York, NY

SWIFT: BOFAUS65

Bank Routing: 026-009-593

Account Name: Bank of America

Account No.: 0012333-34172

First National Bank Alaska

ABA: 125 200 060

Account Name: Alaska Communications Systems

Account No.: 1512 540 4

12. Offices:

	 	 	 	 	 
	The Office of Dealer for the Transaction is:

	Bank of America, N.A.
	 	 	 	 
	c/o Banc of America Securities LLC

	9 West 57th Street, 40th Floor

	New York, NY 10019
Attention:
	 	John Servidio
	Telephone:
	 	 	212-847-6527	 
	Facsimile:
	 	 	212-230-8610	 

The Office of Counterparty for the Transaction is: Not applicable.

13. Notices: For purposes of this Confirmation:

	 	 	 	 	 
	Address for notices or communications to Counterparty:

	To:
	 	Alaska Communications Systems Group, Inc.
	 
	 	600 Telephone Ave.
	 
	 	Anchorage, Alaska 99503
	Attn:
	 	David Wilson
	 
	 	Title: Chief Financial Officer
	Telephone:
	 	 	907-297-3000	 
	Facsimile:
	 	 	907-297-3052	 
	Address for notices or communications to Dealer:

	To:
	 	Bank of America, N.A.

	 	 	 	 	 
	c/o Banc of America Securities LLC

	9 West 57th Street, 40th Floor

	New York, NY 10019
Attn:
	 	John Servidio
	Telephone:
	 	 	212-847-6527	 
	Facsimile:
	 	 	212-230-8610	 

14. Representations, Warranties and Agreements:

(a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Counterparty represents and warrants to and for the benefit of, and agrees with,
Dealer as follows:

(i) On the Trade Date, and as of the date of any election by Counterparty of the Share
Termination Alternative under (and as defined in) Section 8(b) below, none of Counterparty
and its officers and directors is aware of any material nonpublic information regarding
Counterparty or the Shares. On the Trade Date, each of Counterparty’s filings under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are required to be
filed from and including the ending date of Counterparty’s most recent prior fiscal year
have been filed.

(ii) (A) On the Trade Date, the Shares or securities that are convertible into, or
exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted
period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”) and
(B) Counterparty shall not engage in any “distribution,” as such term is defined in
Regulation M, other than a distribution meeting the requirements of the exceptions set forth
in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day
immediately following the Trade Date.

(iii) On the Trade Date, neither Counterparty nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any cash-settled or other
derivative instrument) purchase, offer to purchase, place any bid or limit order that would
effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent
interest, including a unit of beneficial interest in a trust or limited partnership or a
depository share) or any security convertible into or exchangeable or exercisable for
Shares, except through Dealer.

(iv) Without limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Dealer is not making any representations or warranties with
respect to the treatment of the Transaction under FASB Statements 128, 133, 149 (each as
amended), or 150, EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue
statements), under FASB’s Liabilities & Equity Project or under any other accounting
guidance.

(v) Without limiting the generality of Section 3(a)(iii) of the Agreement, the
Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

(vi) Prior to the Trade Date, Counterparty shall deliver to Dealer a resolution of
Counterparty’s board of directors authorizing the Transaction and such other certificate or
certificates as Dealer shall reasonably request.

(vii) Counterparty is not entering into this Confirmation to create actual or apparent
trading activity in the Shares (or any security convertible into or exchangeable for Shares)
or to raise or depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

(viii) Counterparty is not, and after giving effect to the transactions contemplated
hereby will not be, an “investment company” as such term is defined in the Investment
Company Act of 1940, as amended.

(ix) On each of the Trade Date and the Premium Payment Date, Counterparty would be able
to purchase the Shares hereunder in compliance with the laws of the jurisdiction of its
incorporation.

(x) The representations and warranties of Counterparty set forth in Section 3 of the
Agreement and Section 1 of the Purchase Agreement, dated April 2, 2008, between Counterparty
and Banc of America Securities LLC as the representative of the initial purchasers party
thereto (the “Purchase Agreement”) are true and correct and are hereby deemed to be repeated
to Dealer as if set forth herein.

(xi) Counterparty understands no obligations of Dealer to it hereunder will be entitled
to the benefit of deposit insurance and that such obligations will not be guaranteed by any
affiliate of Dealer or any governmental agency.

(b) Each of Dealer and Counterparty agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

(c) Each of Dealer and Counterparty acknowledges that the offer and sale of the Transaction to
it is intended to be exempt from registration under the Securities Act of 1933, as amended (the
“Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Counterparty represents and
warrants to Dealer that (i) it has the financial ability to bear the economic risk of its
investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an
“accredited investor” as that term is defined in Regulation D as promulgated under the Securities
Act, (iii) it is entering into the Transaction for its own account and without a view to the
distribution or resale thereof, and (iv) the assignment, transfer or other disposition of the
Transaction has not been and will not be registered under the Securities Act and is restricted
under this Confirmation, the Securities Act and state securities laws.

(d) Each of Dealer and Counterparty agrees and acknowledges that Dealer is a “financial
institution,” “swap participant” and “financial participant” within the meaning of Sections
101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”). The
parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which
each payment and delivery hereunder or in connection herewith is a “termination value,” “payment
amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and
a “settlement payment” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap
agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to
which each payment and delivery hereunder or in connection herewith is a “termination value,” a
“payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy
Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer
is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17),
362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

(e) Counterparty shall deliver to Dealer an opinion of counsel, dated as of the Effective Date
and reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in
Section 3(a) of the Agreement.

8. Other Provisions:

(a) Additional Termination Events. The occurrence of (i) an “Event of Default” with respect
to Counterparty under the terms of the Convertible Securities as set forth in the Indenture as
described in the Offering Memorandum under “Description of notes — Events of default” or (ii) an
Amendment Event shall be an Additional Termination Event with respect to which the Transaction is
the sole Affected Transaction and Counterparty is the sole Affected Party and Dealer shall be the
party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement.

“Amendment Event” means that Counterparty amends, modifies, supplements, waives or
obtains a waiver in respect of any term of the Indenture or the Convertible Securities
governing the principal amount, coupon, maturity, repurchase obligation of Counterparty,
redemption right of Counterparty, any term relating to conversion of the Convertible
Securities (including changes to the conversion price, conversion settlement dates or
conversion conditions), or any term that would require consent of the holders of not less
than 100% of the principal amount of the Convertible Securities to amend, in each case
without the prior consent of Dealer.

(b) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If, subject to Section 8(k) below, Dealer shall owe Counterparty any amount pursuant to
“Consequences of Merger Events” above or Sections 12.6, 12.7 or 12.9 of the Equity Definitions
(except in the event of an Insolvency, a Nationalization or a Merger Event, in each case, in which
the consideration or proceeds to be paid to holders of Shares consists solely of cash) or pursuant
to Section 6(d)(ii) of the Agreement (except in the event of an Event of Default in which
Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected
Party, that resulted from an event or events within Counterparty’s control) (a “Payment
Obligation”), Counterparty shall have the right, in its sole discretion, to require Dealer to
satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by
giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading
Day, between the hours of 9:00 A.M. and 4:00 P.M. New York City time on the relevant merger date,
Announcement Date, Early Termination Date or date of cancellation or termination for an Additional
Disruption Event, as applicable (“Notice of Share Termination”); provided that if Counterparty does
not require Dealer to satisfy its Payment Obligation by the Share Termination Alternative, Dealer
shall have the right, in its sole discretion, to satisfy its Payment Obligation by the Share
Termination Alternative, notwithstanding Counterparty’s failure to elect or election to the
contrary. Upon such Notice of Share Termination, the following provisions shall apply on the
Scheduled Trading Day immediately following the relevant merger date, Announcement Date, Early
Termination Date or date of cancellation or termination for an Additional Disruption Event, as
applicable:

	 	 	 
	Share Termination Alternative:

Share Termination Delivery

Property:

Share Termination Unit Price:

Share Termination Delivery Unit:

Failure to Deliver:

Other applicable provisions:

	 	Applicable and means that Dealer shall

deliver to Counterparty the Share

Termination Delivery Property on the date on

which the Payment Obligation would otherwise

be due pursuant to “Consequences of Merger

Events” above, Section 12.7 or 12.9 of the

Equity Definitions or Section 6(d)(ii) of

the Agreement, as applicable or such later

date as the Calculation Agent may determine

(the “Share Termination Payment Date”), in

satisfaction of the Payment Obligation.

A number of Share Termination Delivery

Units, as calculated by the Calculation

Agent, equal to the Payment Obligation

divided by the Share Termination Unit Price.

The Calculation Agent shall adjust the

Share Termination Delivery Property by

replacing any fractional portion of a

security therein with an amount of cash

equal to the value of such fractional

security based on the values used to

calculate the Share Termination Unit Price.

The value of property contained in one Share

Termination Delivery Unit on the date such

Share Termination Delivery Units are to be

delivered as Share Termination Delivery

Property, as determined by the Calculation

Agent in its discretion by commercially

reasonable means and notified by the

Calculation Agent to Dealer at the time of

notification of the Payment Obligation.

In the case of a Termination Event, Event of

Default, Delisting or Additional Disruption

Event, one Share or, in the case of an

Insolvency, Nationalization or Merger Event,

a unit consisting of the number or amount of

each type of property received by a holder

of one Share (without consideration of any

requirement to pay cash or other

consideration in lieu of fractional amounts

of any securities) in such Insolvency,

Nationalization or Merger Event. If such

Insolvency, Nationalization or Merger Event

involves a choice of consideration to be

received by holders, such holder shall be

deemed to have elected to receive the

maximum possible amount of cash.

Applicable.

If Share Termination Alternative is

applicable, the provisions of Sections 9.8,

9.9, 9.10, 9.11 (except that the

Representation and Agreement contained in

Section 9.11 of the Equity Definitions shall

be modified by excluding any representations

therein relating to restrictions,

obligations, limitations or requirements

under applicable securities laws arising as

a result of the fact that Counterparty is

the Issuer of the Shares) and 9.12 of the

Equity Definitions will be applicable as if

“Physical Settlement” applied to the

Transaction, except that all references to

“Shares” shall be read as references to

“Share Termination Delivery Units.”

(c) Disposition of Hedge Shares. Counterparty hereby agrees that if, in the good faith
reasonable judgment of Dealer, any Shares (the “Hedge Shares”) acquired by Dealer for the purpose
of hedging its obligations pursuant to the Transaction cannot be sold in the public market by
Dealer without registration under the Securities Act, Counterparty shall, at its election: (i) in
order to allow Dealer to sell the Hedge Shares in a registered offering, make available to Dealer
an effective registration statement under the Securities Act to cover the resale of such Hedge
Shares and (A) enter into an agreement, in form and substance satisfactory to Dealer, substantially
in the form of an underwriting agreement for a registered offering, (B) provide accountant’s
“comfort” letters in customary form for registered offerings of equity securities, (C) provide
disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable
to Dealer, (D) provide other customary opinions, certificates and closing documents customary in
form for registered offerings of equity securities and (E) afford Dealer a reasonable opportunity
to conduct a “due diligence” investigation with respect to Counterparty customary in scope for
underwritten offerings of equity securities; provided, however, that if Dealer, in its sole
reasonable discretion, is not satisfied with access to due diligence materials, the results of its
due diligence investigation, or the procedures and documentation for the registered offering
referred to above, then clause (ii) or clause (iii) of this Section 8(c) shall apply at the
election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private
placement, enter into a private placement agreement substantially similar to private placement
purchase agreements customary for private placements of equity securities, in form and substance
satisfactory to Dealer, including customary representations, covenants, blue sky and other
governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for Dealer
or any designated buyer of the Hedge Shares from Dealer), opinions and certificates and such other
documentation as is customary for private placements agreements, all reasonably acceptable to
Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the
Transaction that are necessary, in its reasonable judgment, to compensate Dealer for any discount
from the public market price of the Shares incurred on the sale of Hedge Shares in a private
placement); or (iii) purchase the Hedge Shares from Dealer at the VWAP Price on such Exchange
Business Days, and in the amounts, requested by Dealer. “VWAP Price” means, on any Exchange
Business Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg
VWAP” on Bloomberg page “ALSK.UQ <equity> VAP” (or any successor thereto) in respect of the
period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Exchange Business Day (or if such
volume-weighted average price is unavailable, the market value of one Share on such Exchange
Business Day, as determined by the Calculation Agent using a volume-weighted method). This
paragraph shall survive the termination, expiration or Early Unwind of the Transaction.

(d) Amendment to Equity Definitions. The following amendment shall be made to the Equity
Definitions:

Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting from
the fourth line thereof the word “or” after the word “official” and inserting a comma
therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting
the following words therefor “or (C) at Dealer’s option, the occurrence of any of the events
specified in Section 5(a)(vii) (1) through (9) of the ISDA 2002 Master Agreement with
respect to that Issuer.”

(e) Repurchase and Conversion Rate Adjustment Notices. Counterparty shall, at least 10
Scheduled Trading Days prior to effecting any repurchase of Shares or consummating or otherwise
executing or engaging in any transaction or event (a “Conversion Rate Adjustment Event”) that would
lead to an increase in the Applicable Conversion Rate (as such term is defined in the Indenture),
give Dealer a written notice of such repurchase or Conversion Rate Adjustment Event (a “Percentage
Notice”) if, following such repurchase or Conversion Rate Adjustment Event, the Notice Percentage
as determined on the date of such Percentage Notice is (i) greater than 6% and (ii) greater by 0.5%
than the Notice Percentage included in the immediately preceding Repurchase Notice (or, in the case
of the first such Repurchase Notice, greater than the Notice Percentage as of the date hereof).
The “Notice Percentage” as of any day is the fraction, expressed as a percentage, the numerator of
which is the Number of Shares and the denominator of which is the number of Shares outstanding on
such day. In the event that Counterparty fails to provide Dealer with a Repurchase Notice on the
day and in the manner specified in this Section 8(e) then Counterparty agrees to indemnify and hold
harmless Dealer, its affiliates and their respective directors, officers, employees, agents and
controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any
and all losses, claims, damages and liabilities (or actions in respect thereof), joint or several,
to which such Indemnified Party may become subject under applicable securities laws, including
without limitation, Section 16 of the Exchange Act, relating to or arising out of such failure. If
for any reason the foregoing indemnification is unavailable to any Indemnified Party or
insufficient to hold harmless any Indemnified Party, then Counterparty shall contribute, to the
maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result
of such loss, claim, damage or liability. In addition, Counterparty will reimburse any Indemnified
Party for all reasonable expenses (including reasonable counsel fees and expenses) as they are
incurred (after notice to Counterparty) in connection with the investigation of, preparation for or
defense or settlement of any pending or threatened claim or any action, suit or proceeding arising
therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim,
action, suit or proceeding is initiated or brought by or on behalf of Counterparty. This indemnity
shall survive the completion of the Transaction contemplated by this Confirmation and any
assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement
shall inure to the benefit of any permitted assignee of Dealer.

(f) Transfer and Assignment. Either party may transfer any of its rights or obligations under
the Transaction with the prior written consent of the non-transferring party, such consent not to
be unreasonably withheld. For the avoidance of doubt, Dealer may condition its consent on any of
the following, without limitation: (i) the receipt by Dealer of opinions and documents reasonably
satisfactory to Dealer in connection with such assignment, (ii) such assignment being effected on
terms reasonably satisfactory to Dealer with respect to any legal and regulatory requirements
relevant to Dealer, (iii) Counterparty continuing to be obligated to provide notices hereunder
relating to the Convertible Securities and continuing to be obligated with respect to “Disposition
of Hedge Shares” and “Repurchase and Conversion Rate Adjustment Notices” above, (iv) such
assignment being made to a U.S. person (as defined in the Internal Revenue Code of 1986, as
amended), (v) Dealer not, as a result of such assignment, being required to pay the transferee on
any payment date an amount under Section 2(d)(i)(4) of the Agreement greater than an amount that
Dealer would have been required to pay to Counterparty in the absence of such transfer and
assignment, (vi) no Event of Default, Potential Event of Default or Termination Event occurring as
a result of such assignment and (vi) Counterparty being responsible for all reasonable costs and
expenses, including reasonable counsel fees, incurred by Dealer in connection with such assignment.
In addition, Dealer may transfer or assign without any consent of Counterparty its rights and
obligations hereunder and under the Agreement, in whole or in part, to (i) any of its affiliates,
(ii) any entities sponsored or organized by, or on behalf of or for the benefit of Dealer or (iii)
any leading equity derivatives dealer; provided that, in each case, the transferee or assignee has
a rating for its long term, unsecured and unsubordinated indebtedness equal to or better than the
lesser of (A) the credit rating of Dealer at the time of the transfer and (B) A- by Standard and
Poor’s Ratings Services or its successor (“S&P”), or A3 by Moody’s Investors Service (“Moody’s”)
or, if either S&P or Moody’s ceases to rate such debt, at least an equivalent rating or better by a
substitute agency rating mutually agreed by Counterparty and Dealer. At any time at which any
Excess Ownership Position exists, or a Hedging Disruption has occurred and is continuing, if
Dealer, in its discretion, is unable to effect a transfer or assignment to a third party in
accordance with the requirements set forth above after using its commercially reasonable efforts on
pricing terms reasonably acceptable to Dealer and within time period reasonably acceptable to
Dealer such that an Excess Ownership Position or a Hedging Disruption, as the case may be, no
longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with
respect to a portion (the “Terminated Portion”) of the Transaction, such that such Excess Ownership
Position or Hedging Disruption, as the case may be, no longer exists. In the event that Dealer so
designates an Early Termination Date with respect to a portion of the Transaction, a payment or
delivery shall be made pursuant to Section 6 of the Agreement and Section 8(b) of this Confirmation
as if (i) an Early Termination Date had been designated in respect of a Transaction having terms
identical to the Terminated Portion of the Transaction, (ii) Counterparty shall be the sole
Affected Party with respect to such partial termination and (iii) such portion of the Transaction
shall be the only Terminated Transaction. “Excess Ownership Position” means any of the following:
(i) the Equity Percentage exceeds 8.0%, (ii) the Option Equity Percentage exceeds 14.5% or (iii)
Dealer or any “affiliate” or “associate” of Dealer would own in excess of 13% of the outstanding
Shares for purposes of Section 203 of the Delaware General Corporation Law. The “Equity
Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is
the number of Shares that Dealer and any of its affiliates or any other person subject to
aggregation with Dealer, for purposes of the “beneficial ownership” test under Section 13 of the
Exchange Act, or of any “group” (within the meaning of Section 13) of which Dealer is or may be
deemed to be a part, beneficially owns (within the meaning of Section 13 of the Exchange Act) on
such day and (B) the denominator of which is the number of Shares outstanding on such day. The
“Option Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the
numerator of which is the Number of Shares on such day and (B) the denominator of which is the
number of Shares outstanding on such day.

(g) Staggered Settlement. Dealer may, by notice to Counterparty on or prior to any Settlement
Date (a “Nominal Settlement Date”), elect to deliver the Shares on two or more dates (each, a
“Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date as follows:

(i) in such notice, Dealer will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement Date, but not
prior to the beginning of the related Settlement Averaging Period) or delivery times and how
it will allocate the Shares it is required to deliver under “Delivery Obligation” (above)
among the Staggered Settlement Dates or delivery times; and

(ii) the aggregate number of Shares that Dealer will deliver to Counterparty hereunder
on all such Staggered Settlement Dates and delivery times will equal the number of Shares
that Dealer would otherwise be required to deliver on such Nominal Settlement Date.

(h) Right to Extend. Dealer may postpone any Potential Exercise Date or postpone or extend
any other date of valuation or delivery by Dealer, with respect to some or all of the relevant
Options (in which event the Calculation Agent shall make appropriate adjustments to the Delivery
Obligation for such Options), if Dealer determines, based on advice of counsel, that such extension
is reasonably necessary or appropriate to enable Dealer to effect its hedging, hedge unwind or
settlement activity hereunder in a manner that would, if Dealer were the Issuer or an affiliated
purchaser of the Issuer, be in compliance with applicable legal, regulatory or self-regulatory
requirements, and would be in compliance with related policies and procedures applicable to Dealer.

(i) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Counterparty and each of its employees, representatives, or other agents may disclose
to any and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Counterparty relating to such tax treatment and tax structure.

(j) Designation by Dealer. Notwithstanding any other provision in this Confirmation to the
contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other
securities to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell,
receive or deliver such shares or other securities and otherwise to perform Dealer obligations in
respect of the Transaction and any such designee may assume such obligations. Dealer shall be
discharged of its obligations to Counterparty to the extent of any such performance.

(k) Netting and Set-off. Notwithstanding any provision of the Agreement (including without
limitation Section 6(f) thereof) and this Confirmation (including without limitation this Section
8(k)) or any other agreement between the parties to the contrary, (A) neither party shall net or
set off its obligations under the Transaction, if any, against its rights against the other party
under any other transaction or instrument, provided that either party may net and set off any
rights of Counterparty against Dealer arising under the Transaction only against obligations of
Counterparty to Dealer arising under any transaction or instrument if such transaction or
instrument does not convey rights to Dealer senior to the claims of common stockholders in the
event of Counterparty’s bankruptcy and (B) in the event of the bankruptcy or liquidation of
Counterparty, neither party shall have the right to set off any obligation that it may have to the
other party under the Transaction against any obligation such other party may have to it under the
Agreement, this Confirmation or any other agreement between the parties hereto, by operation of law
or otherwise. The relevant party will give notice to the other party of any netting or set off
effected under this provision.

(l) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy. For the avoidance of doubt, the parties
agree that the preceding sentence shall not apply at any time other than during Counterparty’s
bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations
under this Confirmation or the Agreement.

(m) Early Unwind. In the event the sale by Counterparty of the Convertible Securities is not
consummated with the initial purchasers thereof pursuant to the Purchase Agreement for any reason
by the close of business in New York on April 8, 2008 (or such later date as agreed upon by the
parties, which in no event shall be later than April 22, 2008) (April 8, 2008 or such later date
being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”),
on the Early Unwind Date and (i) the Transaction and all of the respective rights and obligations
of Dealer and Counterparty under the Transaction shall be cancelled and terminated, and any premium
paid by Counterparty to Dealer hereunder shall promptly be returned to Counterparty (net of any
amounts payable by Counterparty under (ii) below) and (ii) Counterparty shall pay to Dealer an
amount in cash equal to the aggregate amount of costs and expenses relating to the unwinding of
Dealer’s hedging activities in respect of the Transaction (including market losses incurred in
reselling any Shares purchased by Dealer or its affiliates in connection with such hedging
activities); provided, however, that Counterparty shall not be required to make any such payments
under this clause (ii) if the sale of the Convertible Securities is not consummated due to a breach
or default on the part of an initial purchaser under the Purchase Agreement. Following such
termination, cancellation and payment, each party shall be released and discharged by the other
party from and agrees not to make any claim against the other party with respect to any obligations
or liabilities of either party arising out of and to be performed in connection with the
Transaction either prior to or after the Early Unwind Date. Dealer and Counterparty represent and
acknowledge to the other that upon an Early Unwind and following the payment referred to above, all
obligations with respect to the Transaction shall be deemed fully and finally discharged.

(n) Tax Matters. Pursuant to U.S. Treasury Regulation Section 1.1275-6(e), Counterparty hereby
identifies this Transaction, and the Options represented hereby, and the Convertible Securities as
an “integrated transaction”, within the meaning of U.S. Treasury Regulation Section 1.1275-6(c)(1),
whereby the integration of the Convertible Securities and this Transaction results in a synthetic
debt instrument issued at a discount which provides for interest payments equal to the interest
payments on the Convertible Securities and which matures on March 1, 2013.

(o) Waiver of Trial by Jury. EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON
ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS
AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

(p) Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

2

Counterparty hereby agrees (a) to check this Confirmation carefully and immediately
upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to
confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of
the agreement between Dealer and Counterparty with respect to the Transaction, by manually signing
this Confirmation or this page hereof as evidence of agreement to such terms and providing the
other information requested herein and immediately returning an executed copy to us.

Yours faithfully,

BANK OF AMERICA, N.A.

	 	 	 
	
 
	 	By: /s/ Christopher Hutmaker
	
 
	 	 
	
 
	 	Name: Christopher Hutmaker

Title: Managing Director
	Agreed and Accepted By:

	 	

	ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

	By:/s/ David Wilson

	 	

	 

	Name: David Wilson

	 	

	Title: Senior Vice President and

	Chief Financial Officer

	 	

	To:

From:

60 Victoria Embankment

London EC4Y OJP

England

	 	April 4, 2008

Alaska Communications Systems Group, Inc.

600 Telephone Ave.

Anchorage, Alaska 99503

Attn:David Wilson

Telephone:907-297-3000

Facsimile:907-297-3052

JPMorgan Chase Bank, National Association

P.O. Box 161

Telephone:212-622-6707

Facsimile:212-622-8534
	Re:

	 	Convertible Bond Hedge Transaction

(Transaction Reference Number: 2916038)

Ladies and Gentlemen:

The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below, as
amended on April 4, 2008 (the “Transaction”), between JPMorgan Chase Bank, National Association
(“Dealer”) and Alaska Communications Systems Group, Inc. (“Counterparty”). This communication
constitutes a “Confirmation” as referred to in the Agreement specified below.

15. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA
Equity Derivatives Definitions (the “Equity Definitions” and together with the 2006 Definitions,
the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2006 Definitions and the
Equity Definitions, the Equity Definitions will govern. Certain defined terms used herein have the
meanings assigned to them in the Offering Memorandum dated April 2, 2008 (the “Offering
Memorandum”) and the Indenture to be dated on or about April 8, 2008, by and between Counterparty
and The Bank of New York as trustee (the “Indenture”), each relating to the USD125,000,000
principal amount of 5.75% convertible notes due March 1, 2013 (the “Convertible Securities”),
including the Convertible Securities issued pursuant to the initial purchasers’ exercise of their
option to purchase additional Convertible Securities pursuant to the Purchase Agreement (as defined
below). Counterparty shall provide Dealer a copy of the executed Indenture on the Effective Date.
In the event of any inconsistency between the terms defined in the Indenture or defined in the
Offering Memorandum and this Confirmation, this Confirmation shall govern. For the avoidance of
doubt, references herein to provisions of the Indenture are based on the description of the
Convertible Securities set forth in the Offering Memorandum. If any relevant provisions of the
Indenture differ in any material respect from those described in the Offering Memorandum, the
parties will, if appropriate, amend this Confirmation in good faith to preserve the economic intent
of the parties. The parties further acknowledge that if the Indenture is amended, modified or
supplemented following its execution, any such amendment, modification or supplement will be
disregarded for purposes of this Confirmation unless the parties agree otherwise in writing.

This Confirmation evidences a complete and binding agreement between Dealer and Counterparty
as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to, an agreement in the form of the ISDA 2002 Master
Agreement (the “Agreement”), as if Dealer and Counterparty had executed an agreement in such form
(without any Schedule but with the elections set forth in this Confirmation) on the Trade Date.
For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

16. The Transaction constitutes a Share Option Transaction for purposes of the Equity
Definitions. The terms of the particular Transaction to which this Confirmation relates are as
follows:

	 	 	 
	General Terms:

	 	

	Trade Date:

	 	April 2, 2008.

	 	 	 	Effective Date: The closing date of the initial issuance of the Convertible Securities.

	 	 	 
	Option Type:

Seller:

Buyer:

	 	Call.

Dealer.

Counterparty.

	 	 	 	Shares: The Common Stock of Counterparty, par value USD0.01 per share (Ticker Symbol:
“ALSK”).

	 	 	 	Number of Options: The number of Convertible Securities in denominations of USD1,000
principal amount issued by Counterparty on the closing date for the initial issuance of
the Convertible Securities (including the Convertible Securities issued pursuant to the
initial purchasers’ exercise of their option to purchase additional Convertible
Securities pursuant to the Purchase Agreement (as defined below)).

	 	 	 	Number of Shares: As of any date, the product of the Number of Options and the Conversion
Rate.

	 	 	 	Applicable Percentage: 25%.

	 	 	 	Option Entitlement: As of any date, a number of Shares per Option equal to the Conversion
Rate.

	 	 	 	Strike Price: As of any date, USD1,000 divided by the Option Entitlement.

	 	 	 	Conversion Rate: As of any date, the “Applicable Conversion Rate” (as defined in the
Indenture as described in the Offering Memorandum under “Description of notes  ̄
Conversion rights  ̄ General”) as of such date, but without regard to any adjustments to
the “Applicable Conversion Rate” as set forth in the section of the Indenture
containing the provision described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Adjustment to shares delivered upon conversion upon certain
fundamental changes” (a “Fundamental Change Adjustment”) or any discretionary
adjustment as set forth in the section of the Indenture containing the provisions
described in the sixth to last paragraph in the Offering Memorandum under “Description
of notes  ̄ Conversion rights  ̄ Conversion rate adjustments” (i.e., the paragraph
commencing with “We are permitted to increase . . .”) (a “Discretionary Adjustment”).

	 	 	 
	Premium:

Premium Payment Date:

	 	USD5,107,812.50.

The Effective Date.

	 	 	 	Exchange: The NASDAQ Global Select Market of the Nasdaq Stock Market, Inc.

	 	 	 
	Related Exchange:

	 	All Exchanges.
	Procedures for Exercise:

	 	

	Potential Exercise Dates:

	 	Each Conversion Date.

	 	 	 	Conversion Date: Each “Conversion Date” (as defined in the Indenture as described in the
Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄ Conversion
procedures”) occurring during the period from and excluding the Trade Date to but
excluding the Expiration Date, for Convertible Securities that are submitted for
conversion on such Conversion Date in accordance with the terms of the Indenture (such
Convertible Securities, each in denominations of USD1,000 principal amount, the
“Relevant Convertible Securities” for such Conversion Date).

	 	 	 	Required Exercise on

	 	 	 	Conversion Dates: On each Conversion Date, a number of Options equal to the number of
Relevant Convertible Securities for such Conversion Date in denominations of USD1,000
principal amount shall be automatically exercised, subject to “Notice of Exercise”
below.

	 	 	 	Expiration Date: March 1, 2013.

	 	 	 	Automatic Exercise: As provided above under “Required Exercise on Conversion Dates”.

	 	 	 	Notice Deadline: In respect of any exercise of Options hereunder on any Conversion Date, the
Scheduled Trading Day prior to the first Scheduled Valid Day of the Settlement
Averaging Period relating to the Convertible Securities converted on the Conversion
Date occurring on the relevant Exercise Date; provided that in the case of any exercise
of Options hereunder in connection with the conversion of any Relevant Convertible
Securities on any Conversion Date occurring during the period starting on, and
including, November 1, 2012 and ending on, and including, the “Scheduled Trading Day”
(as defined in the Indenture as described in the Offering Memorandum under “Description
of notes  ̄ Conversion rights  ̄ Settlement upon conversion”) immediately preceding the
“Maturity Date” (as defined in the Indenture as described in the Offering Memorandum
under “Description of notes  ̄ General”) (the “Final Conversion Period”), the Notice
Deadline shall be the “Scheduled Trading Day” immediately preceding the “Maturity
Date”.

	 	 	 	Notice of Exercise: Notwithstanding anything to the contrary in the Equity Definitions,
Dealer shall have no obligation to make any payment or delivery in respect of any
exercise of Options hereunder unless Counterparty notifies Dealer in writing prior to
5:00 PM, New York City time, on the Notice Deadline in respect of such exercise of (i)
the number of Options being exercised on such Exercise Date, (ii) the Conversion Date
and (iii) the applicable settlement method under the Indenture and “Specified Dollar
Amount” (as defined in the Indenture as described in the Offering Memorandum under
“Description of notes  ̄ Conversion rights  ̄ Settlement upon conversion”); provided that
in the case of any exercise of relevant Options in connection with the conversion of
any Relevant Convertible Securities on any Conversion Date occurring during the Final
Conversion Period, the contents of such notice shall be as set forth in clause (i)
above. Counterparty acknowledges its responsibilities under applicable securities
laws, and in particular Section 9 and Section 10(b) of the Exchange Act (as defined
below) and the rules and regulations thereunder, in respect of any election of a
settlement method or a “Specified Dollar Amount” with respect to the Convertible
Securities. For the avoidance of doubt, if Counterparty fails to give such notice when
due in respect of any exercise of Options hereunder, (i) such notice (and the related
exercise of Options) shall be effective for Relevant Convertible Securities with a
Conversion Date prior to the Final Conversion Period if given after the Notice
Deadline, but prior to 5:00 PM New York City time, on the fifth Scheduled Trading Day
following the Notice Deadline, in which event the Calculation Agent shall have the
right to adjust the Delivery Obligation as appropriate to reflect the additional costs
(including, but not limited to, hedging mismatches and market losses) and expenses
incurred by Dealer in connection with its hedging activities (including the unwinding
of any hedge position) as a result of Dealer not having received such notice on or
prior to the Notice Deadline, (ii) in respect of any exercise of Options relating to
the conversion of any Relevant Convertible Securities with a Conversion Date during the
Final Conversion Period, Dealer’s obligation to make any payment or delivery with
respect to such exercise shall be permanently extinguished, and late notice shall not
cure such failure and (iii) in any other case of late notice, the Calculation Agent
shall determine the amount of Shares and/or cash Dealer is obligated to deliver in
respect of such Options and the settlement date therefor.

	 	 	 	Final Period Start Date Election: Counterparty shall notify Dealer in writing of the
“Specified Dollar Amount” for any Conversion Date occurring on or after August 2, 2012
(the “Final Period Start Date”) by 5:00 PM New York City time, on August 1, 2012; it
being understood that Counterparty shall notify Dealer of the same “Specified Dollar
Amount” that is applicable to conversions of the Convertible Securities on and after
the Final Period Start Date and Counterparty may elect to settle its conversion
obligation under the Indenture by cash, Shares or a combination of cash and Shares.

	 	 	 
	Dealer’s Telephone Number

and Telex and/or Facsimile Number

and Contact Details for purpose of

Giving Notice:

	 	

To be provided by Dealer.

	 	 	Settlement Terms:

	 	 	 	Settlement Method: Net Share Extended Settlement, Net Share Regular Settlement, Combination
Settlement or Cash Settlement consistent with the settlement method elected by
Counterparty for the Relevant Convertible Securities and subject to the provisions
below.

	 	 	 	Net Share Extended Settlement: Net Share Extended Settlement shall apply if either
(i) Counterparty has elected or been deemed to have elected to deliver only Shares to
satisfy the “Conversion Obligation” (as defined in the Indenture as described in the
Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄ Settlement upon
conversion”) in connection with the conversion of the Relevant Convertible Securities
or (ii) Counterparty has elected to deliver a combination of Shares and cash to satisfy
the “Conversion Obligation” in connection with the conversion of the Relevant
Convertible Securities and the applicable “Specified Dollar Amount” (as defined in the
Indenture as described in the Offering Memorandum under “Description of notes  ̄
Conversion rights  ̄ Settlement upon conversion”) with respect to such conversion is
less than $1,000.

	 	 	 	Net Share Regular Settlement: Net Share Regular Settlement shall apply if (i)
Counterparty has elected or been deemed to have elected to deliver a combination of
Shares and cash to satisfy the “Conversion Obligation” (as defined in the Indenture as
described in the Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄
Settlement upon conversion”) in connection with the conversion of the Relevant
Convertible Securities and (ii) the applicable “Specified Dollar Amount” (as defined in
the Indenture as described in the Offering Memorandum under “Description of notes  ̄
Conversion rights  ̄ Settlement upon conversion”) with respect to such conversion is
equal to $1,000.

	 	 	 	Combination Settlement: Combination Settlement shall apply if (i) Counterparty has elected
to deliver a combination of Shares and cash to satisfy the “Conversion Obligation” (as
defined in the Indenture as described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Settlement upon conversion”) in connection with the
conversion of the Relevant Convertible Securities and (ii) the applicable “Specified
Dollar Amount” (as defined in the Indenture as described in the Offering Memorandum
under “Description of notes  ̄ Conversion rights  ̄ Settlement upon conversion”) with
respect to such conversion is greater than $1,000.

	 	 	 	Cash Settlement: Cash Settlement shall apply if Counterparty has elected to deliver
only cash to satisfy the “Conversion Obligation” (as defined in the Indenture as
described in the Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄
Settlement upon conversion”) in connection with the conversion of the Relevant
Convertible Securities.

	 	 	 	Delivery Obligation: In respect of an Exercise Date occurring on a Conversion Date, in lieu
of the obligations set forth in Sections 8.1 and 9.1 of the Equity Definitions, and
subject to “Notice of Exercise” above, Dealer will deliver to Counterparty, on the
relevant Settlement Date,

(a) if Net Share Extended Settlement applies, the
Applicable Percentage of a number of Shares equal to
the Net Shares (calculated based on the Settlement
Averaging Period for Net Share Extended Settlement)
in respect of the relevant Options exercised on such
Exercise Date. In no event will the Net Shares be
less than zero.

(b) if Net Share Regular Settlement applies, the
Applicable Percentage of a number of Shares equal to
the Net Shares (calculated based on the Settlement
Averaging Period for Net Share Regular Settlement) in
respect of the relevant Options exercised on such
Exercise Date. In no event will the Net Shares be
less than zero.

(c) if Combination Settlement applies, the Applicable
Percentage of an amount of cash and a number of
Shares, if any, equal to the Combination Amount.

(d) if Cash Settlement applies, the Applicable
Percentage of an amount of cash equal to the
Conversion Value in excess of $1,000.

If such exercise relates to the conversion of
Relevant Convertible Securities in connection with
which holders thereof are entitled to receive
additional Shares and/or cash pursuant to the
adjustments to the “Applicable Conversion Rate”
pursuant to a Fundamental Change Adjustment, then,
notwithstanding the foregoing, the Delivery
Obligation shall include the Applicable Percentage of
such additional Shares and/or cash, except that the
Delivery Obligation shall be capped so that the value
of the Delivery Obligation per Option (with the value
of any Shares included in the Delivery Obligation
determined by the Calculation Agent using the VWAP
Price on the last day of the relevant Settlement
Averaging Period) does not exceed the amount as
determined by the Calculation Agent that would be
payable by Dealer pursuant to Section 6 of the
Agreement if such Conversion Date were an Early
Termination Date resulting from an Additional
Termination Event with respect to which the
Transaction (except that, for purposes of determining
such amount the Number of Options shall be deemed to
be equal to the number of Options exercised on such
Exercise Date) was the sole Affected Transaction and
Counterparty was the sole Affected Party (determined
without regard to Section 8(b) of this Confirmation).

Dealer will deliver cash in lieu of any fractional
Shares to be delivered with respect to any Net Shares
or Combination Amount valued at the VWAP Price for
the last Valid Day of the relevant Settlement
Averaging Period.

If Counterparty is permitted to or required to
exercise discretion under the terms of the Indenture
with respect to any determination, calculation or
adjustment relevant to conversion of the Convertible
Securities, Counterparty shall consult with Dealer
with respect thereto and shall make such
determination, calculation or adjustment for purposes
of the Convertible Securities in a commercially
reasonable manner.

	 	 	 	Net Shares: In respect of any Option exercised on any Exercise Date corresponding
to a Conversion Date, a number of Shares equal to the sum of, for each Valid Day during
the applicable Settlement Averaging Period for such Option, (i) the Option Entitlement
on such Valid Day multiplied by (ii) (A) the VWAP Price on such Valid Day less the
Strike Price, divided by (B) such VWAP Price, divided by (iii) the number of Valid Days
in such Settlement Averaging Period; provided however that if the calculation contained
in clause (A) above results in a negative number, such number shall be replaced with
the number “zero”.

	 	 	 	Valid Day: A day on which (i) trading in the Shares generally occurs on the Exchange
or, if the Shares are not then listed on the Exchange, on the principal other U.S.
national or regional securities exchange on which the Shares are then listed or, if the
Shares are not then listed on a U.S. national or regional securities exchange, in the
principal other market on which the Shares are then traded and (ii) there is no Market
Disruption Event.

	 	 	 	Scheduled Valid Day: A day on which trading in the Shares is scheduled to occur on the
principal U.S. national or regional securities exchange or market on which the Shares
are listed or admitted for trading. If the Shares are not so listed or admitted for
trading, “Scheduled Valid Day” means a New York Business Day.

	 	 	 	Market Disruption Event: Section 6.3(a) of the Equity Definitions is hereby amended by
deleting the words “during the one hour period that ends at the relevant Valuation
Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the
case may be,” in clause (ii) thereof, and by amending and restating clause (a)(iii)
thereof in its entirety to read as follows: “(iii) an Early Closure that the
Calculation Agent determines is material.”

Section 6.3(d) of the Equity Definitions is hereby
amended by deleting the remainder of the provision
following the term “Scheduled Closing Time” in the
fourth line thereof.

	 	 	 	VWAP Price: On any Valid Day, the per Share volume-weighted average price as
displayed under the heading “Bloomberg VWAP” on Bloomberg page “ALSK.UQ <equity>
VAP” (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m.
(New York City time) on such Valid Day (or if such volume-weighted average price is
unavailable, the market value of one Share on such Valid Day, as determined by the
Calculation Agent using a volume-weighted average price method).

	 	 	 	Settlement Averaging Period: In respect of any Option exercised on any Exercise Date
corresponding to a Conversion Date,

(x) with respect to an Option with a Conversion Date
occurring prior to the Final Period Start Date, (i)
if Net Share Extended Settlement applies, the one
hundred twenty (120) consecutive Valid Days
commencing on and including the third Valid Day
following such Conversion Date or (ii) if Net Share
Regular Settlement, Combination Settlement or Cash
Settlement applies, the sixty (60) consecutive Valid
Days commencing on and including the third Valid Day
following such Conversion Date, or

(y) if Net Share Extended Settlement applies with
respect to such Option with a Conversion Date
occurring on or after the Final Period Start Date,
the one hundred twenty (120) consecutive Valid Days
commencing on, and including, the one hundred twenty
second (122nd) Scheduled Valid Day
immediately prior the Expiration Date; or

(z) if either Net Share Regular Settlement,
Combination Settlement or Cash Settlement applies
with respect to such Option with a Conversion Date
occurring on or after the Final Period Start Date,
(A) if the Conversion Date occurs during the Final
Conversion Period, the sixty (60) consecutive Valid
Days commencing on, and including, the sixty second
(62nd) Scheduled Valid Day immediately
prior to the Expiration Date or (B) if the Conversion
Date occurs on or after the Final Period Start Date
but before the Final Conversion Period, the sixty
(60) consecutive Valid Days commencing on and
including the third Valid Day following such
Conversion Date.

	 	 	 	Combination Amount: In respect of any Option exercised on any Exercise Date corresponding to
a Conversion Date, (A) an amount of cash equal to the difference between (i) the lesser
of (x) the applicable “Specified Dollar Amount” (as defined in the Indenture as
described in the Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄
Settlement upon conversion”) and (y) the Conversion Value and (ii) $1,000, and (B) to
the extent the Conversion Value exceeds the applicable “Specified Dollar Amount”, a
number of Shares equal to the sum of the Daily Share Amounts for each of the Valid Days
during the applicable Settlement Averaging Period; provided, however, that if the
calculation contained in clause (A) above results in a negative number, such number
shall be replaced with the number “zero”.

	 	 	 	Daily Share Amount: Means, for each Valid Day during the applicable Settlement
Averaging Period, (A) the greater of (i) zero and (ii) the Option Entitlement on such
Valid Day minus the quotient of (x) the applicable “Specified Dollar Amount” (as
defined in the Indenture as described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Settlement upon conversion”) divided by (y) the VWAP Price
on such Valid Day divided by (B) 60.

	 	 	 	Conversion Value: In respect of any Option exercised on any Exercise Date corresponding to a
Conversion Date, an amount equal to the sum of, for each Valid Day during the
applicable Settlement Averaging Period for such Option, (A) the product of (i) the
Option Entitlement on such Valid Day and (ii) the VWAP Price on such Valid Day divided
by (B) 60.

	 	 	 	Settlement Date: In respect of any Option exercised on any Exercise Date corresponding to a
Conversion Date, the date Shares and/or cash will be delivered with respect to the
Convertible Securities related to such Option under the terms of the Indenture;
provided however that the Settlement Date shall not be prior to the date one Settlement
Cycle following the final day of the relevant Settlement Averaging Period.

	 	 	 	Other Applicable Provisions: To the extent Dealer is obligated to deliver Shares
hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 (except that the
Representation and Agreement contained in Section 9.11 of the Equity Definitions shall
be modified by excluding any representations therein relating to restrictions,
obligations, limitations or requirements under applicable securities laws arising as a
result of the fact that Counterparty is the Issuer of the Shares) and 9.12 of the
Equity Definitions will be applicable as if “Physical Settlement” applied to the
Transaction.

	 	 	 	Restricted Certificated Shares: Notwithstanding anything to the contrary in the Equity
Definitions, Dealer may, in whole or in part, deliver Shares required to be delivered
to Counterparty hereunder in certificated form in lieu of delivery through the
Clearance System. With respect to such certificated Shares, the Representation and
Agreement contained in Section 9.11 of the Equity Definitions shall be modified by
deleting the remainder of the provision after the word “encumbrance” in the fourth line
thereof.

	 	 	Share Adjustments:

	 	 	 	Method of Adjustment: Notwithstanding Section 11.2 of the Equity Definitions, upon the
occurrence of any event or condition set forth in the sections of the Indenture
containing the provisions described in the Offering Memorandum under “Description of
notes  ̄ Conversion rights  ̄ Conversion rate adjustments” other than any event or
condition that would result in a Fundamental Change Adjustment or a Discretionary
Adjustment (each, an “Adjustment Event”), the Calculation Agent shall make a
corresponding adjustment, if necessary, to the terms relevant to the exercise,
settlement, payment or other terms of the Transaction. Immediately upon the occurrence
of any Adjustment Event, Counterparty shall notify the Calculation Agent of such
Adjustment Event; and once the adjustments to be made to the terms of the Indenture and
the Convertible Securities in respect of such Adjustment Event have been determined,
Counterparty shall immediately notify the Calculation Agent in writing of the details
of such adjustment.

	 	 	 	Dividend Adjustment: If at any time during the period from, but excluding, the Trade Date
to, and including, the later of the Expiration Date and the last day of the final
Settlement Averaging Period, an ex-dividend date for any cash dividend or distribution
occurs with respect to the Shares (an “Ex-Dividend Date”) and that dividend or
distribution is less than the Regular Dividend on a per Share basis, then the
Calculation Agent will adjust any variable relevant to the exercise, settlement,
payment or other terms of the Transaction to preserve the fair value of the Transaction
to Dealer after taking into account such dividend or distribution. If no Ex-Dividend
Date occurs within any regular quarterly dividend period, Counterparty shall be deemed
to have paid a cash dividend in an amount of zero with an Ex-Dividend Date occurring on
the last Exchange Business Day of such regular quarterly dividend period.

	 	 	 	Regular Dividend: USD 0.215 per quarter.

	 	 	Extraordinary Events:

	 	 	 	Merger Events: Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event”
means the occurrence of any event or condition set forth in the section of the
Indenture containing the provisions described in the eighth to last paragraph in the
Offering Memorandum under “Description of notes  ̄ Conversion rights  ̄ Conversion rate
adjustments” (i.e., the paragraph commencing with “In the event of: any
reclassification . . .”).

	 	 	 	Consequences of Merger Events: Notwithstanding Section 12.2 of the Equity Definitions, upon
the occurrence of a Merger Event, the Calculation Agent shall make the corresponding
adjustment in respect of any adjustment under the Indenture to any one or more of the
nature of the Shares, the Number of Options and any other variable relevant to the
exercise, settlement, payment or other terms of the Transaction; provided however that
such adjustment shall be made without regard to any adjustment to the “Applicable
Conversion Rate” pursuant to a Fundamental Change Adjustment or a Discretionary
Adjustment; and provided further that the Calculation Agent may limit or alter any such
adjustment referenced in this paragraph so that the fair value of the Transaction to
Dealer is not reduced as a result of such adjustment in the case of a “Fundamental
Change” (as defined in the Indenture as described in the Offering Memorandum under
“Description of notes  ̄ Fundamental change permits holders to require us to purchase
notes”) described in clauses (1) or (2) of the definition thereof (for the avoidance of
doubt, determined without regard to the 90% publicly traded securities carve-out); and
provided further that if, with respect to a Merger Event, the consideration for the
Shares includes (or, at the option of a holder of Shares, may include) shares of an
entity or person not organized under the laws of the United States, any State thereof
or the District of Columbia, Cancellation and Payment (Calculation Agent Determination)
shall apply.

	 	 	 	Notice of Merger Consideration: Upon the occurrence of a Merger Event that causes the Shares
to be converted into the right to receive more than a single type of consideration
(determined based in part upon any form of election of the holders of the Shares),
Counterparty shall reasonably promptly (but, in any event, prior to the date on which
such Merger Event is consummated) notify the Calculation Agent of (i) the weighted
average of the types and amounts of consideration to be received by the holders of
Shares entitled to receive cash, securities or other property or assets with respect to
or in exchange for such Shares in any Merger Event who affirmatively make such an
election and (ii) the details of the adjustment to be made under the Indenture in
respect of such Merger Event.

Nationalization, Insolvency

	 	•	 	r Delisting: Cancellation and Payment (Calculation Agent Determination); provided
that, in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions,
it will also constitute a Delisting if the Exchange is located in the United States and
the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York
Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or the
NASDAQ Global Market (or their respective successors); if the Shares are immediately
re-listed, re-traded or re-quoted on any such exchange or quotation system, such
exchange or quotation system shall thereafter be deemed to be the Exchange.

	 	 	 	 	 
	Additional Disruption Events:
	 	 
	Hedging Party:

	 	(a)Change in Law:

(b)Failure to Deliver:

(c)Insolvency Filing:

(d)Hedging Disruption:

(e)Increased Cost of Hedging:
	 	Applicable.

Applicable.

Applicable.

Applicable.

Applicable.

For all applicable Additional Disruption Events, Dealer.
	Determining Party:
	 	For all applicable Additional Disruption Events, Dealer.
	Acknowledgments:

	 	

	 	

	Non-Reliance:

	 	 	 	Applicable.
	Agreements and Acknowledgments
	 	 
	Regarding Hedging Activities:
	 	Applicable.
	Additional Acknowledgments:
	 	Applicable.
	17.

	 	Calculation Agent:
	 	Dealer.
	
 
	 	 
	 	

18. Account Details:

Dealer Payment Instructions: JPMorgan Chase Bank, National Association, New York

ABA: 021 000 021

Favour: JPMorgan Chase Bank, National Association –
London

A/C: 0010962009 CHASUS33

	 	 	 
	
 
	 	Account for delivery of Shares to JPMorgan:
	Counterparty Payment Instructions:

	 	DTC 060

First National Bank Alaska

ABA: 125 200 060

Account Name: Alaska Communications Systems

Account No.: 1512 540 4

19. Offices:

The Office of Dealer for the Transaction is:

JPMorgan Chase Bank, National Association

London Branch

P.O. Box 161

60 Victoria Embankment

London EC4Y 0JP

England

The Office of Counterparty for the Transaction is: Not applicable.

20. Notices: For purposes of this Confirmation:

	 	 	 	 	 
	Address for notices or communications to Counterparty:

	To:
	 	Alaska Communications Systems Group, Inc.
	 
	 	600 Telephone Ave.
	 
	 	Anchorage, Alaska 99503
	Attn:
	 	David Wilson
	 
	 	Title: Chief Financial Officer
	Telephone:
	 	 	907-297-3000	 
	Facsimile:
	 	 	907-297-3052	 
	Address for notices or communications to Dealer:

	To:
	 	JPMorgan Chase Bank, National Association
	 
	 	277 Park Avenue, 11th Floor
	 
	 	New York, NY  10172
	Attn:
	 	Mariusz Kwasnik
	 
	 	Title: Operations Analyst
	 
	 	EDG Corporate Marketing
	Telephone:
	 	 	212-622-6707	 
	Facsimile:
	 	 	212-622-8534	 

21. Representations, Warranties and Agreements:

(a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Counterparty represents and warrants to and for the benefit of, and agrees with,
Dealer as follows:

(i) On the Trade Date, and as of the date of any election by Counterparty of the Share
Termination Alternative under (and as defined in) Section 8(b) below, none of Counterparty
and its officers and directors is aware of any material nonpublic information regarding
Counterparty or the Shares. On the Trade Date, each of Counterparty’s filings under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are required to be
filed from and including the ending date of Counterparty’s most recent prior fiscal year
have been filed.

(ii) (A) On the Trade Date, the Shares or securities that are convertible into, or
exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted
period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”) and
(B) Counterparty shall not engage in any “distribution,” as such term is defined in
Regulation M, other than a distribution meeting the requirements of the exceptions set forth
in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange Business Day
immediately following the Trade Date.

(iii) On the Trade Date, neither Counterparty nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any cash-settled or other
derivative instrument) purchase, offer to purchase, place any bid or limit order that would
effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent
interest, including a unit of beneficial interest in a trust or limited partnership or a
depository share) or any security convertible into or exchangeable or exercisable for
Shares, except through Dealer.

(iv) Without limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Dealer is not making any representations or warranties with
respect to the treatment of the Transaction under FASB Statements 128, 133, 149 (each as
amended), or 150, EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue
statements), under FASB’s Liabilities & Equity Project or under any other accounting
guidance.

(v) Without limiting the generality of Section 3(a)(iii) of the Agreement, the
Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

(vi) Prior to the Trade Date, Counterparty shall deliver to Dealer a resolution of
Counterparty’s board of directors authorizing the Transaction and such other certificate or
certificates as Dealer shall reasonably request.

(vii) Counterparty is not entering into this Confirmation to create actual or apparent
trading activity in the Shares (or any security convertible into or exchangeable for Shares)
or to raise or depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

(viii) Counterparty is not, and after giving effect to the transactions contemplated
hereby will not be, an “investment company” as such term is defined in the Investment
Company Act of 1940, as amended.

(ix) On each of the Trade Date and the Premium Payment Date, Counterparty would be able
to purchase the Shares hereunder in compliance with the laws of the jurisdiction of its
incorporation.

(x) The representations and warranties of Counterparty set forth in Section 3 of the
Agreement and Section 1 of the Purchase Agreement, dated April 2, 2008, between Counterparty
and Banc of America Securities LLC as the representative of the initial purchasers party
thereto (the “Purchase Agreement”) are true and correct and are hereby deemed to be repeated
to Dealer as if set forth herein.

(xi) Counterparty understands no obligations of Dealer to it hereunder will be entitled
to the benefit of deposit insurance and that such obligations will not be guaranteed by any
affiliate of Dealer or any governmental agency.

(b) Each of Dealer and Counterparty agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

(c) Each of Dealer and Counterparty acknowledges that the offer and sale of the Transaction to
it is intended to be exempt from registration under the Securities Act of 1933, as amended (the
“Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Counterparty represents and
warrants to Dealer that (i) it has the financial ability to bear the economic risk of its
investment in the Transaction and is able to bear a total loss of its investment, (ii) it is an
“accredited investor” as that term is defined in Regulation D as promulgated under the Securities
Act, (iii) it is entering into the Transaction for its own account and without a view to the
distribution or resale thereof, and (iv) the assignment, transfer or other disposition of the
Transaction has not been and will not be registered under the Securities Act and is restricted
under this Confirmation, the Securities Act and state securities laws.

(d) Each of Dealer and Counterparty agrees and acknowledges that Dealer is a “financial
institution,” “swap participant” and “financial participant” within the meaning of Sections
101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”). The
parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which
each payment and delivery hereunder or in connection herewith is a “termination value,” “payment
amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and
a “settlement payment” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap
agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to
which each payment and delivery hereunder or in connection herewith is a “termination value,” a
“payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy
Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer
is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17),
362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

(e) Counterparty shall deliver to Dealer an opinion of counsel, dated as of the Effective Date
and reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in
Section 3(a) of the Agreement.

8. Other Provisions:

(a) Additional Termination Events. The occurrence of (i) an “Event of Default” with respect
to Counterparty under the terms of the Convertible Securities as set forth in the Indenture as
described in the Offering Memorandum under “Description of notes — Events of default” or (ii) an
Amendment Event shall be an Additional Termination Event with respect to which the Transaction is
the sole Affected Transaction and Counterparty is the sole Affected Party and Dealer shall be the
party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement.

“Amendment Event” means that Counterparty amends, modifies, supplements, waives or
obtains a waiver in respect of any term of the Indenture or the Convertible Securities
governing the principal amount, coupon, maturity, repurchase obligation of Counterparty,
redemption right of Counterparty, any term relating to conversion of the Convertible
Securities (including changes to the conversion price, conversion settlement dates or
conversion conditions), or any term that would require consent of the holders of not less
than 100% of the principal amount of the Convertible Securities to amend, in each case
without the prior consent of Dealer.

(b) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If, subject to Section 8(k) below, Dealer shall owe Counterparty any amount pursuant to
“Consequences of Merger Events” above or Sections 12.6, 12.7 or 12.9 of the Equity Definitions
(except in the event of an Insolvency, a Nationalization or a Merger Event, in each case, in which
the consideration or proceeds to be paid to holders of Shares consists solely of cash) or pursuant
to Section 6(d)(ii) of the Agreement (except in the event of an Event of Default in which
Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected
Party, that resulted from an event or events within Counterparty’s control) (a “Payment
Obligation”), Counterparty shall have the right, in its sole discretion, to require Dealer to
satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) by
giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading
Day, between the hours of 9:00 A.M. and 4:00 P.M. New York City time on the relevant merger date,
Announcement Date, Early Termination Date or date of cancellation or termination for an Additional
Disruption Event, as applicable (“Notice of Share Termination”); provided that if Counterparty does
not require Dealer to satisfy its Payment Obligation by the Share Termination Alternative, Dealer
shall have the right, in its sole discretion, to satisfy its Payment Obligation by the Share
Termination Alternative, notwithstanding Counterparty’s failure to elect or election to the
contrary. Upon such Notice of Share Termination, the following provisions shall apply on the
Scheduled Trading Day immediately following the relevant merger date, Announcement Date, Early
Termination Date or date of cancellation or termination for an Additional Disruption Event, as
applicable:

	 	 	 
	Share Termination Alternative:

Share Termination Delivery

Property:

Share Termination Unit Price:

Share Termination Delivery Unit:

Failure to Deliver:

Other applicable provisions:

	 	Applicable and means that Dealer shall

deliver to Counterparty the Share

Termination Delivery Property on the date on

which the Payment Obligation would otherwise

be due pursuant to “Consequences of Merger

Events” above, Section 12.7 or 12.9 of the

Equity Definitions or Section 6(d)(ii) of

the Agreement, as applicable or such later

date as the Calculation Agent may determine

(the “Share Termination Payment Date”), in

satisfaction of the Payment Obligation.

A number of Share Termination Delivery

Units, as calculated by the Calculation

Agent, equal to the Payment Obligation

divided by the Share Termination Unit Price.

The Calculation Agent shall adjust the

Share Termination Delivery Property by

replacing any fractional portion of a

security therein with an amount of cash

equal to the value of such fractional

security based on the values used to

calculate the Share Termination Unit Price.

The value of property contained in one Share

Termination Delivery Unit on the date such

Share Termination Delivery Units are to be

delivered as Share Termination Delivery

Property, as determined by the Calculation

Agent in its discretion by commercially

reasonable means and notified by the

Calculation Agent to Dealer at the time of

notification of the Payment Obligation.

In the case of a Termination Event, Event of

Default, Delisting or Additional Disruption

Event, one Share or, in the case of an

Insolvency, Nationalization or Merger Event,

a unit consisting of the number or amount of

each type of property received by a holder

of one Share (without consideration of any

requirement to pay cash or other

consideration in lieu of fractional amounts

of any securities) in such Insolvency,

Nationalization or Merger Event. If such

Insolvency, Nationalization or Merger Event

involves a choice of consideration to be

received by holders, such holder shall be

deemed to have elected to receive the

maximum possible amount of cash.

Applicable.

If Share Termination Alternative is

applicable, the provisions of Sections 9.8,

9.9, 9.10, 9.11 (except that the

Representation and Agreement contained in

Section 9.11 of the Equity Definitions shall

be modified by excluding any representations

therein relating to restrictions,

obligations, limitations or requirements

under applicable securities laws arising as

a result of the fact that Counterparty is

the Issuer of the Shares) and 9.12 of the

Equity Definitions will be applicable as if

“Physical Settlement” applied to the

Transaction, except that all references to

“Shares” shall be read as references to

“Share Termination Delivery Units.”

(c) Disposition of Hedge Shares. Counterparty hereby agrees that if, in the good faith
reasonable judgment of Dealer, any Shares (the “Hedge Shares”) acquired by Dealer for the purpose
of hedging its obligations pursuant to the Transaction cannot be sold in the public market by
Dealer without registration under the Securities Act, Counterparty shall, at its election: (i) in
order to allow Dealer to sell the Hedge Shares in a registered offering, make available to Dealer
an effective registration statement under the Securities Act to cover the resale of such Hedge
Shares and (A) enter into an agreement, in form and substance satisfactory to Dealer, substantially
in the form of an underwriting agreement for a registered offering, (B) provide accountant’s
“comfort” letters in customary form for registered offerings of equity securities, (C) provide
disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable
to Dealer, (D) provide other customary opinions, certificates and closing documents customary in
form for registered offerings of equity securities and (E) afford Dealer a reasonable opportunity
to conduct a “due diligence” investigation with respect to Counterparty customary in scope for
underwritten offerings of equity securities; provided, however, that if Dealer, in its sole
reasonable discretion, is not satisfied with access to due diligence materials, the results of its
due diligence investigation, or the procedures and documentation for the registered offering
referred to above, then clause (ii) or clause (iii) of this Section 8(c) shall apply at the
election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private
placement, enter into a private placement agreement substantially similar to private placement
purchase agreements customary for private placements of equity securities, in form and substance
satisfactory to Dealer, including customary representations, covenants, blue sky and other
governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for Dealer
or any designated buyer of the Hedge Shares from Dealer), opinions and certificates and such other
documentation as is customary for private placements agreements, all reasonably acceptable to
Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the
Transaction that are necessary, in its reasonable judgment, to compensate Dealer for any discount
from the public market price of the Shares incurred on the sale of Hedge Shares in a private
placement); or (iii) purchase the Hedge Shares from Dealer at the VWAP Price on such Exchange
Business Days, and in the amounts, requested by Dealer. “VWAP Price” means, on any Exchange
Business Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg
VWAP” on Bloomberg page “ALSK.UQ <equity> VAP” (or any successor thereto) in respect of the
period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Exchange Business Day (or if such
volume-weighted average price is unavailable, the market value of one Share on such Exchange
Business Day, as determined by the Calculation Agent using a volume-weighted method). This
paragraph shall survive the termination, expiration or Early Unwind of the Transaction.

(d) Amendment to Equity Definitions. The following amendment shall be made to the Equity
Definitions:

Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting from
the fourth line thereof the word “or” after the word “official” and inserting a comma
therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting
the following words therefor “or (C) at Dealer’s option, the occurrence of any of the events
specified in Section 5(a)(vii) (1) through (9) of the ISDA 2002 Master Agreement with
respect to that Issuer.”

(e) Repurchase and Conversion Rate Adjustment Notices. Counterparty shall, at least 10
Scheduled Trading Days prior to effecting any repurchase of Shares or consummating or otherwise
executing or engaging in any transaction or event (a “Conversion Rate Adjustment Event”) that would
lead to an increase in the Applicable Conversion Rate (as such term is defined in the Indenture),
give Dealer a written notice of such repurchase or Conversion Rate Adjustment Event (a “Percentage
Notice”) if, following such repurchase or Conversion Rate Adjustment Event, the Notice Percentage
as determined on the date of such Percentage Notice is (i) greater than 6% and (ii) greater by 0.5%
than the Notice Percentage included in the immediately preceding Repurchase Notice (or, in the case
of the first such Repurchase Notice, greater than the Notice Percentage as of the date hereof).
The “Notice Percentage” as of any day is the fraction, expressed as a percentage, the numerator of
which is the Number of Shares and the denominator of which is the number of Shares outstanding on
such day. In the event that Counterparty fails to provide Dealer with a Repurchase Notice on the
day and in the manner specified in this Section 8(e) then Counterparty agrees to indemnify and hold
harmless Dealer, its affiliates and their respective directors, officers, employees, agents and
controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any
and all losses, claims, damages and liabilities (or actions in respect thereof), joint or several,
to which such Indemnified Party may become subject under applicable securities laws, including
without limitation, Section 16 of the Exchange Act, relating to or arising out of such failure. If
for any reason the foregoing indemnification is unavailable to any Indemnified Party or
insufficient to hold harmless any Indemnified Party, then Counterparty shall contribute, to the
maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result
of such loss, claim, damage or liability. In addition, Counterparty will reimburse any Indemnified
Party for all reasonable expenses (including reasonable counsel fees and expenses) as they are
incurred (after notice to Counterparty) in connection with the investigation of, preparation for or
defense or settlement of any pending or threatened claim or any action, suit or proceeding arising
therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim,
action, suit or proceeding is initiated or brought by or on behalf of Counterparty. This indemnity
shall survive the completion of the Transaction contemplated by this Confirmation and any
assignment and delegation of the Transaction made pursuant to this Confirmation or the Agreement
shall inure to the benefit of any permitted assignee of Dealer.

(f) Transfer and Assignment. Either party may transfer any of its rights or obligations under
the Transaction with the prior written consent of the non-transferring party, such consent not to
be unreasonably withheld. For the avoidance of doubt, Dealer may condition its consent on any of
the following, without limitation: (i) the receipt by Dealer of opinions and documents reasonably
satisfactory to Dealer in connection with such assignment, (ii) such assignment being effected on
terms reasonably satisfactory to Dealer with respect to any legal and regulatory requirements
relevant to Dealer, (iii) Counterparty continuing to be obligated to provide notices hereunder
relating to the Convertible Securities and continuing to be obligated with respect to “Disposition
of Hedge Shares” and “Repurchase and Conversion Rate Adjustment Notices” above, (iv) such
assignment being made to a U.S. person (as defined in the Internal Revenue Code of 1986, as
amended), (v) Dealer not, as a result of such assignment, being required to pay the transferee on
any payment date an amount under Section 2(d)(i)(4) of the Agreement greater than an amount that
Dealer would have been required to pay to Counterparty in the absence of such transfer and
assignment, (vi) no Event of Default, Potential Event of Default or Termination Event occurring as
a result of such assignment and (vi) Counterparty being responsible for all reasonable costs and
expenses, including reasonable counsel fees, incurred by Dealer in connection with such assignment.
In addition, Dealer may transfer or assign without any consent of Counterparty its rights and
obligations hereunder and under the Agreement, in whole or in part, to (i) any of its affiliates,
(ii) any entities sponsored or organized by, or on behalf of or for the benefit of Dealer or (iii)
any leading equity derivatives dealer; provided that, in each case, the transferee or assignee has
a rating for its long term, unsecured and unsubordinated indebtedness equal to or better than the
lesser of (A) the credit rating of Dealer at the time of the transfer and (B) A- by Standard and
Poor’s Ratings Services or its successor (“S&P”), or A3 by Moody’s Investors Service (“Moody’s”)
or, if either S&P or Moody’s ceases to rate such debt, at least an equivalent rating or better by a
substitute agency rating mutually agreed by Counterparty and Dealer. At any time at which any
Excess Ownership Position exists, or a Hedging Disruption has occurred and is continuing, if
Dealer, in its discretion, is unable to effect a transfer or assignment to a third party in
accordance with the requirements set forth above after using its commercially reasonable efforts on
pricing terms reasonably acceptable to Dealer and within time period reasonably acceptable to
Dealer such that an Excess Ownership Position or a Hedging Disruption, as the case may be, no
longer exists, Dealer may designate any Scheduled Trading Day as an Early Termination Date with
respect to a portion (the “Terminated Portion”) of the Transaction, such that such Excess Ownership
Position or Hedging Disruption, as the case may be, no longer exists. In the event that Dealer so
designates an Early Termination Date with respect to a portion of the Transaction, a payment or
delivery shall be made pursuant to Section 6 of the Agreement and Section 8(b) of this Confirmation
as if (i) an Early Termination Date had been designated in respect of a Transaction having terms
identical to the Terminated Portion of the Transaction, (ii) Counterparty shall be the sole
Affected Party with respect to such partial termination and (iii) such portion of the Transaction
shall be the only Terminated Transaction. “Excess Ownership Position” means any of the following:
(i) the Equity Percentage exceeds 8.0%, (ii) the Option Equity Percentage exceeds 14.5% or (iii)
Dealer or any “affiliate” or “associate” of Dealer would own in excess of 13% of the outstanding
Shares for purposes of Section 203 of the Delaware General Corporation Law. The “Equity
Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is
the number of Shares that Dealer and any of its affiliates or any other person subject to
aggregation with Dealer, for purposes of the “beneficial ownership” test under Section 13 of the
Exchange Act, or of any “group” (within the meaning of Section 13) of which Dealer is or may be
deemed to be a part, beneficially owns (within the meaning of Section 13 of the Exchange Act) on
such day and (B) the denominator of which is the number of Shares outstanding on such day. The
“Option Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the
numerator of which is the Number of Shares on such day and (B) the denominator of which is the
number of Shares outstanding on such day.

(g) Staggered Settlement. Dealer may, by notice to Counterparty on or prior to any Settlement
Date (a “Nominal Settlement Date”), elect to deliver the Shares on two or more dates (each, a
“Staggered Settlement Date”) or at two or more times on the Nominal Settlement Date as follows:

(i) in such notice, Dealer will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement Date, but not
prior to the beginning of the related Settlement Averaging Period) or delivery times and how
it will allocate the Shares it is required to deliver under “Delivery Obligation” (above)
among the Staggered Settlement Dates or delivery times; and

(ii) the aggregate number of Shares that Dealer will deliver to Counterparty hereunder
on all such Staggered Settlement Dates and delivery times will equal the number of Shares
that Dealer would otherwise be required to deliver on such Nominal Settlement Date.

(h) Right to Extend. Dealer may postpone any Potential Exercise Date or postpone or extend
any other date of valuation or delivery by Dealer, with respect to some or all of the relevant
Options (in which event the Calculation Agent shall make appropriate adjustments to the Delivery
Obligation for such Options), if Dealer determines, based on advice of counsel, that such extension
is reasonably necessary or appropriate to enable Dealer to effect its hedging, hedge unwind or
settlement activity hereunder in a manner that would, if Dealer were the Issuer or an affiliated
purchaser of the Issuer, be in compliance with applicable legal, regulatory or self-regulatory
requirements, and would be in compliance with related policies and procedures applicable to Dealer.

(i) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Counterparty and each of its employees, representatives, or other agents may disclose
to any and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Counterparty relating to such tax treatment and tax structure.

(j) Designation by Dealer. Notwithstanding any other provision in this Confirmation to the
contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other
securities to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell,
receive or deliver such shares or other securities and otherwise to perform Dealer obligations in
respect of the Transaction and any such designee may assume such obligations. Dealer shall be
discharged of its obligations to Counterparty to the extent of any such performance.

(k) Netting and Set-off. Notwithstanding any provision of the Agreement (including without
limitation Section 6(f) thereof) and this Confirmation (including without limitation this Section
8(k)) or any other agreement between the parties to the contrary, (A) neither party shall net or
set off its obligations under the Transaction, if any, against its rights against the other party
under any other transaction or instrument, provided that either party may net and set off any
rights of Counterparty against Dealer arising under the Transaction only against obligations of
Counterparty to Dealer arising under any transaction or instrument if such transaction or
instrument does not convey rights to Dealer senior to the claims of common stockholders in the
event of Counterparty’s bankruptcy and (B) in the event of the bankruptcy or liquidation of
Counterparty, neither party shall have the right to set off any obligation that it may have to the
other party under the Transaction against any obligation such other party may have to it under the
Agreement, this Confirmation or any other agreement between the parties hereto, by operation of law
or otherwise. The relevant party will give notice to the other party of any netting or set off
effected under this provision.

(l) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy. For the avoidance of doubt, the parties
agree that the preceding sentence shall not apply at any time other than during Counterparty’s
bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations
under this Confirmation or the Agreement.

(m) Early Unwind. In the event the sale by Counterparty of the Convertible Securities is not
consummated with the initial purchasers thereof pursuant to the Purchase Agreement for any reason
by the close of business in New York on April 8, 2008 (or such later date as agreed upon by the
parties, which in no event shall be later than April 22, 2008) (April 8, 2008 or such later date
being the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”),
on the Early Unwind Date and (i) the Transaction and all of the respective rights and obligations
of Dealer and Counterparty under the Transaction shall be cancelled and terminated, and any premium
paid by Counterparty to Dealer hereunder shall promptly be returned to Counterparty (net of any
amounts payable by Counterparty under (ii) below) and (ii) Counterparty shall pay to Dealer an
amount in cash equal to the aggregate amount of costs and expenses relating to the unwinding of
Dealer’s hedging activities in respect of the Transaction (including market losses incurred in
reselling any Shares purchased by Dealer or its affiliates in connection with such hedging
activities); provided, however, that Counterparty shall not be required to make any such payments
under this clause (ii) if the sale of the Convertible Securities is not consummated due to a breach
or default on the part of an initial purchaser under the Purchase Agreement. Following such
termination, cancellation and payment, each party shall be released and discharged by the other
party from and agrees not to make any claim against the other party with respect to any obligations
or liabilities of either party arising out of and to be performed in connection with the
Transaction either prior to or after the Early Unwind Date. Dealer and Counterparty represent and
acknowledge to the other that upon an Early Unwind and following the payment referred to above, all
obligations with respect to the Transaction shall be deemed fully and finally discharged.

(n) Tax Matters. Pursuant to U.S. Treasury Regulation Section 1.1275-6(e), Counterparty hereby
identifies this Transaction, and the Options represented hereby, and the Convertible Securities as
an “integrated transaction”, within the meaning of U.S. Treasury Regulation Section 1.1275-6(c)(1),
whereby the integration of the Convertible Securities and this Transaction results in a synthetic
debt instrument issued at a discount which provides for interest payments equal to the interest
payments on the Convertible Securities and which matures on March 1, 2013.

(o) Role of Agent. Each party agrees and acknowledges that (i) J.P. Morgan Securities Inc.,
an affiliate of Dealer (“JPMSI”), has acted solely as agent and not as principal with respect to
this Transaction and (ii) JPMSI has no obligation or liability, by way of guaranty, endorsement or
otherwise, in any manner in respect of this Transaction (including, if applicable, in respect of
the settlement thereof). Each party agrees it will look solely to the other party (or any
guarantor in respect thereof) for performance of such other party’s obligations under this
Transaction.

(p) Waiver of Trial by Jury. EACH OF COUNTERPARTY AND DEALER HEREBY IRREVOCABLY WAIVES (ON
ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF DEALER OR ITS
AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

(q) Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

3

Counterparty hereby agrees (a) to check this Confirmation carefully and immediately
upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to
confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of
the agreement between Dealer and Counterparty with respect to the Transaction, by manually signing
this Confirmation or this page hereof as evidence of agreement to such terms and providing the
other information requested herein and immediately returning an executed copy to us.

Yours faithfully,

J.P. MORGAN SECURITIES INC.,

AS AGENT FOR JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION

	 	 	 	 	 	 	 
	
 
	 	 	 	By:
	 	/s/ Jeffrey Zajkowski
	
 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	Name: Jeffrey Zajkowski

Title: Managing Director
	Agreed and Accepted By:

	 	

	 	

	 	

	ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
	 	 	 	 
	By:

	 	/s/ David Wilson
	 	

	 	

	
 
	 	 
	 	

	 	

	 	 	Name: David Wilson

Title: Senior Vice President and

Chief Financial Officer

4EX-10.3

	 	 	 
	To:

From:

	 	April 4, 2008

Alaska Communications Systems Group, Inc.

600 Telephone Ave.

Anchorage, Alaska 99503

Attn:David Wilson

Telephone:907-297-3000

Facsimile:907-297-3052

Barclays Capital Inc.,

as Agent for Barclays Bank PLC

200 Park Avenue

New York, New York 10166

Telephone:212-412-4000

Facsimile:212-412-7519
	Re:

	 	Issuer Warrant Transaction

(Transaction Reference Number: BN57236)

Ladies and Gentlemen:

The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below, as
amended on April 4, 2008 (the “Transaction”), between Barclays Bank PLC (“Dealer”) and Alaska
Communications Systems Group, Inc. (“Issuer”). This communication constitutes a “Confirmation” as
referred to in the ISDA Master Agreement specified below, as well as for purposes of Rule 10b-10
promulgated under the Securities Exchange Act of 1934, as amended. An affiliate of Dealer,
Barclays Capital Inc. (the “Agent”), is acting as Dealer’s agent for this Transaction.

1. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA
Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2006 Definitions,
the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2006 Definitions and the
Equity Definitions, the Equity Definitions will govern. For purposes of the Equity Definitions,
each reference herein to a Warrant shall be deemed to be a reference to a Call Option or an Option,
as context requires.

This Confirmation evidences a complete and binding agreement between Dealer and Issuer as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to, an agreement in the form of the ISDA 2002 Master
Agreement (the “Agreement”), as if Dealer and Issuer had executed an agreement in such form
(without any Schedule but with the elections set forth in this Confirmation) on the Trade Date.
For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

Each of Dealer and Issuer acknowledges to and agrees with the other party hereto and to and
with the Agent that (i) the Agent is acting as agent for Dealer under the Transaction pursuant to
instructions from Dealer, (ii) the Agent is not a principal or party to the Transaction, and may
transfer its rights and obligations with respect to the Transaction, (iii) the Agent shall have no
responsibility, obligation or liability to either party in respect of the Transaction, (iv) Dealer
and the Agent have not given, and Issuer is not relying (for purposes of making any investment
decision or otherwise) upon, any statements, opinions or representations (whether written or oral)
of Dealer or the Agent, other than the representations expressly set forth in this Confirmation and
the Agreement, and (v) each party agrees to proceed solely against the other party, and not the
Agent, to collect or recover any money or securities owed to it in connection with the Transaction.
Each party hereto acknowledges and agrees that the Agent is an intended third party beneficiary
hereunder. Issuer acknowledges that the Agent is an Affiliate of Dealer.

Dealer is not a member of the Securities Investor Protection Corporation.

2. The Transaction is a Warrant Transaction, which shall be considered a Share Option
Transaction for purposes of the Equity Definitions. The terms of the particular Transaction to
which this Confirmation relates are as follows:

	 	 	 
	General Terms:

	 	

	Trade Date:

	 	April 2, 2008.

	 	 	 	Effective Date: April 8, 2008, or such other date as agreed between the parties, subject to
Section 8(o) below.

	 	 	 	Components: The Transaction will be divided into individual Components, each with the terms
set forth in this Confirmation, and, in particular, with the Number of Warrants and
Expiration Date set forth in this Confirmation. The payments and deliveries to be made
upon settlement of the Transaction will be determined separately for each Component as
if each Component were a separate Transaction under the Agreement.

	 	 	 
	Warrant Style:

Warrant Type:

Seller:

Buyer:

	 	European.

Call.

Issuer.

Dealer.

	 	 	 	Shares: The Common Stock of Issuer, par value USD0.01 per share (Ticker Symbol: “ALSK”).

	 	 	 	Number of Warrants: For each Component, as provided in Annex A to this Confirmation.

	 	 	 
	Warrant Entitlement:

Strike Price:

	 	One Share per Warrant.

As provided in Annex B to this Confirmation.
	
 
	 	 
	Premium:

	 	As provided in Annex B to this Confirmation.
	
 
	 	 
	Premium Payment Date:

	 	The Effective Date.

	 	 	 	Exchange: The NASDAQ Global Select Market of the Nasdaq Stock Market, Inc.

	 	 	 
	Related Exchange:

	 	All Exchanges.
	Procedures for Exercise:

	 	

	In respect of any Component:

	 	

	Expiration Time:

	 	Valuation Time.

	 	 	 	Expiration Date: As provided in Annex A to this Confirmation (or, if such date is
not a Scheduled Trading Day, the next following Scheduled Trading Day that is not
already an Expiration Date for another Component); provided that if that date is a
Disrupted Day, the Expiration Date for such Component shall be the first succeeding
Scheduled Trading Day that is not a Disrupted Day and is not or is not deemed to be an
Expiration Date in respect of any other Component of the Transaction hereunder; and
provided further that if the Expiration Date has not occurred pursuant to the preceding
proviso as of the Final Disruption Date, the Final Disruption Date shall be the
Expiration Date (irrespective of whether such date is an Expiration Date occurring on
the Final Disruption Date in respect of any other Component for the Transaction) and,
notwithstanding anything to the contrary in this Confirmation or the Equity
Definitions, the Relevant Price for the Expiration Date shall be the prevailing market
value per Share determined by the Calculation Agent in a commercially reasonable
manner. Notwithstanding the foregoing and anything to the contrary in the Equity
Definitions, if a Market Disruption Event occurs on any Expiration Date, the
Calculation Agent may determine that such Expiration Date is a Disrupted Day only in
part, in which case the Calculation Agent shall make adjustments to the number of
Warrants for the relevant Component for which such day shall be the Expiration Date and
shall designate the Scheduled Trading Day determined in the manner described in the
immediately preceding sentence as the Expiration Date for the remaining Warrants for
such Component. Section 6.6 of the Equity Definitions shall not apply to any Valuation
Date occurring on an Expiration Date. “Final Disruption Date” has the meaning provided
in Annex B to this Confirmation.

	 	 	 	Market Disruption Event: Section 6.3(a) of the Equity Definitions is hereby amended by
deleting the words “during the one hour period that ends at the relevant Valuation
Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the
case may be,” in clause (ii) thereof.

Section 6.3(d) of the Equity Definitions is hereby
amended by deleting the remainder of the provision
following the term “Scheduled Closing Time” in the
fourth line thereof.

	 	 	 	Automatic Exercise: Applicable; and means that the Number of Warrants for each Component
will be deemed to be automatically exercised at the Expiration Time on the Expiration
Date for such Component unless Dealer notifies Seller (by telephone or in writing)
prior to the Expiration Time on the Expiration Date that it does not wish Automatic
Exercise to occur, in which case Automatic Exercise will not apply.

	 	 	 
	Issuer’s Telephone Number

and Telex and/or Facsimile Number

and Contact Details for purpose of

Giving Notice:

	 	

To be provided by Issuer.
	Settlement Terms:

	 	

	In respect of any Component:

	 	

	Settlement Currency:

	 	USD.

	 	 	 	Net Share Settlement: On each Settlement Date, Issuer shall deliver to Dealer a
number of Shares equal to the Number of Shares to be Delivered for such Settlement Date
to the account specified by Dealer and cash in lieu of any fractional shares valued at
the Relevant Price on the Valuation Date corresponding to such Settlement Date.

	 	 	 	Number of Shares to be Delivered: In respect of any Exercise Date, subject to the last
sentence of Section 9.5 of the Equity Definitions, the product of (i) the number of
Warrants exercised or deemed exercised on such Exercise Date, (ii) the Warrant
Entitlement and (iii) (A) the excess, if any, of the Relevant Price on the Valuation
Date occurring on such Exercise Date over the Strike Price divided by (B) such Relevant
Price.

The Number of Shares to be Delivered shall be delivered
by Issuer to Dealer no later than 12:00 noon (local
time in New York City) on the relevant Settlement Date.

	 	 	 	Relevant Price: For any Valuation Date, the Rule 10b-18 dollar volume weighted average price
per Share for such Valuation Date based on transactions executed during such Valuation
Date, as reported on Bloomberg Page “ALSK.UQ <Equity> AQR SEC” (or any successor
thereto) or, in the event such price is not so reported on such Valuation Date for any
reason, as reasonably determined by the Calculation Agent.

	 	 	 	Other Applicable Provisions: The provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11
(except that the Representation and Agreement contained in Section 9.11 of the Equity
Definitions shall be modified by excluding any representations therein relating to
restrictions, obligations, limitations or requirements under applicable securities laws
as a result of the fact that Seller is the Issuer of the Shares) and 9.12 of the Equity
Definitions will be applicable as if “Physical Settlement” applied to the Transaction.

	 	 	 
	Adjustments:

	 	

	In respect of any Component:

	 	

	Method of Adjustment:

	 	Calculation Agent Adjustment.

	 	 	 	Extraordinary Dividend: Any dividend or distribution (i) that has an ex-dividend date
occurring after the Trade Date and on or prior to the Expiration Date and (ii) the
amount or value of which differs from the Ordinary Dividend Amount for such dividend or
distribution, as determined by the Calculation Agent.

	 	 	 	Ordinary Dividend Amount: USD 0.215 per quarter.

	 	 	Extraordinary Events:

	 	 	 	New Shares: In the definition of New Shares in Section 12.1(i) of the Equity
Definitions, (a) the text in clause (i) thereof shall be deleted in its entirety
(including the word “and” following clause (i)) and replaced with “publicly quoted,
traded or listed on any of the New York Stock Exchange, the American Stock Exchange,
the NASDAQ Global Select Market or the NASDAQ Global Market (or their respective
successors),” and (b) the phrase “and (iii) of an entity or person organized under the
laws of the United States, any State thereof or the District of Columbia” shall be
inserted immediately prior to the period.

	 	 	 	 	 
	Consequences of Merger Events:
	 	 
	(a)

(b)

(c)

Tender Offer:

	 	Share-for-Share:

Share-for-Other:

Share-for-Combined:
	 	Modified Calculation Agent Adjustment.

Cancellation and Payment (Calculation Agent Determination).

Cancellation and Payment (Calculation Agent Determination).

Applicable.
	Consequences of Tender Offers:
	 	 
	(a)

	 	Share-for-Share:
	 	Modified Calculation Agent Adjustment.

	 	(b)	 	Share-for-Other: Cancellation and Payment (Calculation Agent
Determination) on that portion of the Other Consideration that consists of cash;
Modified Calculation Agent Adjustment on the remainder of the Other Consideration.

	 	(c)	 	Share-for-Combined: Modified Calculation Agent Adjustment.

	 	 	 	Modified Calculation

	 	 	 	Agent Adjustment: If, in respect of any Merger Event or Tender Offer to which
Modified Calculation Agent Adjustment applies, the adjustments to be made in accordance
with Section 12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity
Definitions would result in Issuer being different from the issuer of the Shares, then
with respect to such Merger Event or Tender Offer, as a condition precedent to the
adjustments contemplated in Section 12.2(e)(i) or Section 12.3(d)(i), as the case may
be, of the Equity Definitions, Issuer and the issuer of the Shares shall, prior to the
Merger Date or Tender Offer, as the case may be, have entered into such documentation
containing representations, warranties and agreements relating to securities law and
other issues as requested by Dealer that Dealer has determined, in its reasonable
discretion, to be reasonably necessary or appropriate to allow Dealer to continue as a
party to the Transaction, as adjusted under Section 12.2(e)(i) or Section 12.3(d)(i),
as the case may be, of the Equity Definitions, and to preserve its hedging or hedge
unwind activities in connection with the Transaction in a manner compliant with
applicable legal, regulatory or self-regulatory requirements, or with related policies
and procedures applicable to Dealer, and if such conditions are not met or if the
Calculation Agent determines that no adjustment that it could make under Section
12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity Definitions will
produce a commercially reasonable result, then the consequences set forth in Section
12.2(e)(ii) or Section 12.3(d)(ii), as the case may be, of the Equity Definitions shall
apply.

	 	 	 	Nationalization, Insolvency

	 	•	 	r Delisting: Cancellation and Payment (Calculation Agent Determination); provided
that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions,
it shall also constitute a Delisting if the Exchange is located in the United States
and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New
York Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or
the NASDAQ Global Market (or their respective successors); if the Shares are
immediately re-listed, re-traded or re-quoted on any such exchange or quotation system,
such exchange or quotation system shall thereafter be deemed to be the Exchange.

	 	 	 	 	 
	Additional Disruption Events:
	 	 
	Acknowledgments:

	 	(a)Change in Law:

(b)Failure to Deliver:

(c)Insolvency Filing:

(d)Hedging Disruption:

(e) Increased Cost of Hedging:

(f) Loss of Stock Borrow:

Maximum Stock Loan Rate:

(g) Increased Cost of Stock Borrow:

Initial Stock Loan Rate:

Hedging Party:

Determining Party:

	 	Applicable.

Not Applicable.

Applicable.

Applicable.

Applicable.

Applicable.

100 basis points per annum.

Applicable.

50 basis points per annum.

Dealer for all applicable Additional Disruption Events.

Dealer for all applicable Additional Disruption Events.

	Non-Reliance:

	 	 	 	Applicable.
	Agreements and Acknowledgments
	 	 
	Regarding Hedging Activities:
	 	Applicable.
	Additional Acknowledgments:
	 	Applicable.
	3.

	 	Calculation Agent:
	 	Dealer.
	
 
	 	 
	 	

4. Account Details:

	 	 	 
	Dealer Payment Instructions:

Issuer Payment Instructions:

	 	Barclays Bank PLC, New York

A/C#: 50038524

SWIFT Code: BARCUS33

f/b/o BARCGB33

Ref: Equity Derivatives

First National Bank Alaska

ABA: 125 200 060

Account Name: Alaska Communications Systems

Account No.: 1512 540 4

5. Offices:

	 	 	 
	The Office of Dealer for the Transaction is:

	Barclays Bank PLC, 5 The North Colonnade

	Canary Wharf, London E14 4BB

	Facsimile:

Phone:

	 	44(20) 777 36461

44(20) 777 36810

The Office of Issuer for the Transaction is: Not applicable.

6. Notices: For purposes of this Confirmation:

(a) Address for notices or communications to Issuer:

	 	 	 	 	 
	To:
	 	Alaska Communications Systems Group, Inc.
	 
	 	600 Telephone Ave.
	 
	 	Anchorage, Alaska 99503
	Attn:
	 	David Wilson
	Telephone:
	 	 	907-297-3000	 
	Facsimile:
	 	 	907-297-3052	 

(b) Address for notices or communications to Dealer:

	 	 	 	 	 
	To:
	 	Barclays Capital, Inc.
	 
	 	200 Park Avenue
	 
	 	New York, New York 10166
	Attention:
	 	General Counsel
	Telephone:
	 	 	212-412-4000	 
	Facsimile:
	 	 	212-412-7519	 
	with a copy to:
	 	 	 	 
	To:
	 	Barclays Capital Inc.,
	 
	 	200 Park Avenue
	 
	 	New York, 10166
	Attention:
	 	Equity Products
	and
	 	 	 	 
	To:
	 	Barclays Bank PLC,
	 
	 	5 The North Colonnade
	 
	 	Canary Wharf, London E14 4BB
	Phone:
	 	 	44(20) 777 36810	 
	Facsimile:
	 	 	44(20) 777 36461	 

7. Representations, Warranties and Agreements:

(a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Issuer represents and warrants to and for the benefit of, and agrees with, Dealer
as follows:

(i) On the Trade Date, and as of the date of any election by Issuer of the Share
Termination Alternative under (and as defined in) Section 8(a) below, none of Issuer and its
officers and directors is aware of any material nonpublic information regarding Issuer or
the Shares. On the Trade Date, each of Issuer’s filings under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), that are required to be filed from and including
the ending date of Issuer’s most recent prior fiscal year have been filed.

(ii) Without limiting the generality of Section 13.1 of the Equity Definitions, Issuer
acknowledges that Dealer is not making any representations or warranties with respect to the
treatment of the Transaction under FASB Statements 128, 133, 149 (each as amended), or 150,
EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue statements), under FASB’s
Liabilities & Equity Project or under any other accounting guidance.

(iii) Prior to the Trade Date, Issuer shall deliver to Dealer a resolution of Issuer’s
board of directors authorizing the Transaction and such other certificate or certificates as
Dealer shall reasonably request.

(iv) Issuer is not entering into this Confirmation to create actual or apparent trading
activity in the Shares (or any security convertible into or exchangeable for Shares) or to
raise or depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

(v) Issuer is not, and after giving effect to the transactions contemplated hereby will
not be, an “investment company” as such term is defined in the Investment Company Act of
1940, as amended.

(vi) On the Trade Date (A) the assets of Issuer at their fair valuation exceed the
liabilities of Issuer, including contingent liabilities, (B) the capital of Issuer is
adequate to conduct the business of Issuer and (C) Issuer has the ability to pay its debts
and obligations as such debts mature and does not intend to, or does not believe that it
will, incur debt beyond its ability to pay as such debts mature.

(vii) Issuer shall not take any action to decrease the number of Available Shares below
the Capped Number (each as defined below).

(viii) Issuer understands no obligations of Dealer to it hereunder will be entitled to
the benefit of deposit insurance and that such obligations will not be guaranteed by any
Affiliate of Dealer or any governmental agency.

(ix) (A) During the period starting on the first Expiration Date and ending on the last
Expiration Date (the “Settlement Period”), the Shares or securities that are convertible
into, or exchangeable or exercisable for Shares, are not, and shall not be, subject to a
“restricted period,” as such term is defined in Regulation M under the Exchange Act
(“Regulation M”) and (B) Issuer shall not engage in any “distribution,” as such term is
defined in Regulation M, other than a distribution meeting the requirements of the
exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second
Exchange Business Day immediately following the Settlement Period.

(x) During the Settlement Period, neither Issuer nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any cash-settled or other
derivative instrument) purchase, offer to purchase, place any bid or limit order that would
effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent
interest, including a unit of beneficial interest in a trust or limited partnership or a
depository share) or any security convertible into or exchangeable or exercisable for
Shares, except through Dealer.

(xi) The Shares of Issuer initially issuable upon exercise of the Warrant (the “Warrant
Shares”) have been reserved for issuance by all required corporate action of Issuer. The
Warrant Shares have been duly authorized and, when delivered against payment therefor (which
may include Net Share Settlement in lieu of cash) and otherwise as contemplated by the terms
of the Warrant following the exercise of the Warrant in accordance with the terms and
conditions of the Warrant, will be validly issued, fully-paid and non-assessable, and the
issuance of the Warrant Shares will not be subject to any preemptive or similar rights.

(b) Each of Dealer and Issuer agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

(c) Each of Dealer and Issuer acknowledges that the offer and sale of the Transaction to it is
intended to be exempt from registration under the Securities Act of 1933, as amended (the
“Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Dealer represents and warrants
to Issuer that (i) it has the financial ability to bear the economic risk of its investment in the
Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor”
as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is
entering into the Transaction for its own account without a view to the distribution or resale
thereof and (iv) the assignment, transfer or other disposition of the Transaction has not been and
will not be registered under the Securities Act and is restricted under this Confirmation, the
Securities Act and state securities laws.

(d) Each of Dealer and Issuer agrees and acknowledges that Dealer is a “financial
institution,” “swap participant” and “financial participant” within the meaning of Sections
101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”). The
parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which
each payment and delivery hereunder or in connection herewith is a “termination value,” “payment
amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and
a “settlement payment” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap
agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to
which each payment and delivery hereunder or in connection herewith is a “termination value,” a
“payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy
Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer
is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17),
362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

(e) Issuer shall deliver to Dealer an opinion of counsel, dated as of the Effective Date and
reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in
Section 3(a) of the Agreement.

8. Other Provisions:

(a) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If, subject to Section 8(m) below, Issuer shall owe Dealer any amount pursuant to Sections
12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of an Insolvency, a
Nationalization, a Tender Offer or a Merger Event, in each case, in which the consideration or
proceeds to be paid to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii)
of the Agreement (except in the event of an Event of Default in which Issuer is the Defaulting
Party or a Termination Event in which Issuer is the Affected Party, that resulted from an event or
events within Issuer’s control) (a “Payment Obligation”), Issuer shall have the right, in its sole
discretion, to satisfy any such Payment Obligation by the Share Termination Alternative (as defined
below) by giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled
Trading Day, between the hours of 9:00 A.M. and 4:00 P.M. New York City time on the Merger Date,
Tender Offer Date, Announcement Date, Early Termination Date or other date the Transaction is
cancelled or terminated, as applicable (“Notice of Share Termination”), provided that if Issuer
does not elect to satisfy its Payment Obligation by the Share Termination Alternative, Dealer shall
have the right, in its sole discretion, to require Issuer to satisfy its Payment Obligation by the
Share Termination Alternative, notwithstanding Issuer’s failure to elect or election to the
contrary. Upon such Notice of Share Termination, the following provisions shall apply on the
Scheduled Trading Day immediately following the Merger Date, the Tender Offer Date, Announcement
Date, Early Termination Date or other date the Transaction is cancelled or terminated, as
applicable:

	 	 	 
	Share Termination Alternative:

Share Termination Delivery

Property:

Share Termination Unit Price:

Share Termination Delivery Unit:

Failure to Deliver:

Other applicable provisions:

	 	Applicable and means that Issuer shall

deliver to Dealer the Share Termination

Delivery Property on the date on which the

Payment Obligation would otherwise be due

pursuant to Section 12.7 or 12.9 of the

Equity Definitions or Section 6(d)(ii) of

the Agreement, as applicable (the “Share

Termination Payment Date”), in satisfaction

of the Payment Obligation.

A number of Share Termination Delivery

Units, as calculated by the Calculation

Agent, equal to the Payment Obligation

divided by the Share Termination Unit Price.

The Calculation Agent shall adjust the

Share Termination Delivery Property by

replacing any fractional portion of a

security therein with an amount of cash

equal to the value of such fractional

security based on the values used to

calculate the Share Termination Unit Price.

The value of property contained in one Share

Termination Delivery Unit on the date such

Share Termination Delivery Units are to be

delivered as Share Termination Delivery

Property, as determined by the Calculation

Agent in its discretion by commercially

reasonable means and notified by the

Calculation Agent to Issuer at the time of

notification of the Payment Obligation.

In the case of a Termination Event, Event of

Default, Delisting or Additional Disruption

Event, one Share or, in the case of an

Insolvency, Nationalization, Merger Event or

Tender Offer, a unit consisting of the

number or amount of each type of property

received by a holder of one Share (without

consideration of any requirement to pay cash

or other consideration in lieu of fractional

amounts of any securities) in such

Insolvency, Nationalization, Merger Event or

Tender Offer. If such Insolvency,

Nationalization, Merger Event or Tender

Offer involves a choice of consideration to

be received by holders, such holder shall be

deemed to have elected to receive the

maximum possible amount of cash.

Applicable.

If Share Termination Alternative is

applicable, the provisions of Sections 9.8,

9.9, 9.10, 9.11 (except that the

Representation and Agreement contained in

Section 9.11 of the Equity Definitions shall

be modified by excluding any representations

therein relating to restrictions,

obligations, limitations or requirements

under applicable securities laws as a result

of the fact that Seller is the Issuer of the

Shares) and 9.12 of the Equity Definitions

will be applicable as if “Physical

Settlement” applied to the Transaction,

except that all references to “Shares” shall

be read as references to “Share Termination

Delivery Units”.

(b) Registration/Private Placement Procedures. (i) If, in the reasonable judgment of Dealer,
for any reason, any Shares or any securities of Issuer or its affiliates comprising any Share
Termination Delivery Units deliverable to Dealer hereunder (any such Shares or securities,
“Delivered Securities”) would not be immediately freely transferable by Dealer under Rule 144 under
the Securities Act, then the provisions set forth in this Section 8(b) shall apply. At the
election of Issuer by notice to Dealer within one Scheduled Trading Day after the relevant delivery
obligation arises, but in any event at least one Scheduled Trading Day prior to the date on which
such delivery obligation is due, either (A) all Delivered Securities delivered by Issuer to Dealer
shall be, at the time of such delivery, covered by an effective registration statement of Issuer
for immediate resale by Dealer (such registration statement and the corresponding prospectus (the
“Prospectus”) (including, without limitation, any sections describing the plan of distribution) in
form and content commercially reasonably satisfactory to Dealer) or (B) Issuer shall deliver
additional Delivered Securities so that the value of such Delivered Securities, as determined by
the Calculation Agent to reflect an appropriate liquidity discount, equals the value of the number
of Delivered Securities that would otherwise be deliverable if such Delivered Securities were
freely tradeable (without prospectus delivery) upon receipt by Dealer (such value, the “Freely
Tradeable Value”); provided that Issuer may not make the election described in this clause (B) if,
on the date of its election, it has taken, or caused to be taken, any action that would make
unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the delivery by
Issuer to Dealer (or any affiliate designated by Dealer) of the Delivered Securities or the
exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the
Delivered Securities by Dealer (or any such affiliate of Dealer). (For the avoidance of doubt, as
used in this paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant
securities, as the context shall require.)

(ii) If Issuer makes the election described in clause (b)(i)(A) above:

(A) Dealer (or an Affiliate of Dealer designated by Dealer) shall be afforded a
reasonable opportunity to conduct a due diligence investigation with respect to Issuer that
is customary in scope for underwritten offerings of equity securities and that yields
results that are commercially reasonably satisfactory to Dealer or such Affiliate, as the
case may be, in its discretion; and

(B) Dealer (or an Affiliate of Dealer designated by Dealer) and Issuer shall enter into
an agreement (a “Registration Agreement”) on commercially reasonable terms in connection
with the public resale of such Delivered Securities by Dealer or such Affiliate
substantially similar to underwriting agreements customary for underwritten offerings of
equity securities, in form and substance commercially reasonably satisfactory to Dealer or
such Affiliate and Issuer, which Registration Agreement shall include, without limitation,
provisions substantially similar to those contained in such underwriting agreements relating
to the indemnification of, and contribution in connection with the liability of, Dealer and
its Affiliates and Issuer, shall provide for the payment by Issuer of reasonable expenses in
connection with such resale, including all registration costs and reasonable fees and
expenses of counsel for Dealer, and shall provide for the delivery of accountants’ “comfort
letters” to Dealer or such Affiliate with respect to the financial statements and certain
financial information contained in or incorporated by reference into the Prospectus.

(iii) If Issuer makes the election described in clause (b)(i)(B) above:

(A) Dealer (or an Affiliate of Dealer designated by Dealer) and any potential
institutional purchaser of any such Delivered Securities from Dealer or such Affiliate
identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a
due diligence investigation in compliance with applicable law with respect to Issuer
customary in scope for private placements of equity securities (including, without
limitation, the right to have made available to them for inspection all financial and other
records, pertinent corporate documents and other information reasonably requested by them);

(B) Dealer (or an Affiliate of Dealer designated by Dealer) and Issuer shall enter into
an agreement (a “Private Placement Agreement”) on commercially reasonable terms in
connection with the private placement of such Delivered Securities by Issuer to Dealer or
such Affiliate and the private resale of such shares by Dealer or such Affiliate,
substantially similar to private placement purchase agreements customary for private
placements of equity securities, in form and substance commercially reasonably satisfactory
to Dealer and Issuer, which Private Placement Agreement shall include, without limitation,
provisions substantially similar to those contained in such private placement purchase
agreements relating to the indemnification of, and contribution in connection with the
liability of, Dealer and its Affiliates and Issuer, shall provide for the payment by Issuer
of reasonable expenses in connection with such resale, including reasonable fees and
expenses of counsel for Dealer, shall contain representations, warranties and agreements of
Issuer reasonably necessary or advisable to establish and maintain the availability of an
exemption from the registration requirements of the Securities Act for such resales, and
shall use best efforts to provide for the delivery of accountants’ “comfort letters” to
Dealer or such Affiliate with respect to the financial statements and certain financial
information contained in or incorporated by reference into the offering memorandum prepared
for the resale of such Shares;

(C) Issuer agrees that any Delivered Securities so delivered to Dealer, (i) may be
transferred by and among Dealer and its Affiliates, and Issuer shall effect such transfer
without any further action by Dealer and (ii) after the minimum “holding period” within the
meaning of Rule 144(d) under the Securities Act has elapsed with respect to such Delivered
Securities, Issuer shall promptly remove, or cause the transfer agent for such Shares or
securities to remove, any legends referring to any such restrictions or requirements from
such Delivered Securities upon delivery by Dealer (or such Affiliate of Dealer) to Issuer or
such transfer agent of any seller’s and broker’s representation letters customarily
delivered by Dealer in connection with resales of restricted securities pursuant to Rule 144
under the Securities Act, without any further requirement for the delivery of any
certificate, consent, agreement, opinion of counsel, notice or any other document, any
transfer tax stamps or payment of any other amount or any other action by Dealer (or such
affiliate of Dealer); and

(D) Issuer shall not take, or cause to be taken, any action that would make unavailable
either the exemption pursuant to Section 4(2) of the Securities Act for the sale by Issuer
to Dealer (or any affiliate designated by Dealer) of the Shares or Share Termination
Delivery Units, as the case may be, or the exemption pursuant to Section 4(1) or Section
4(3) of the Securities Act for resales of the Shares or Share Termination Delivery Units, as
the case may be, by Dealer (or any such affiliate of Dealer).

(c) Make-whole. If Issuer makes the election described in clause (b)(i)(B) of paragraph (b) of
this Section 8, then Dealer or its affiliate may sell such Shares or Share Termination Delivery
Units, as the case may be, during a period (the “Resale Period”) commencing on the Exchange
Business Day following delivery of such Shares or Share Termination Delivery Units, as the case may
be (which sale shall be conducted in a commercially reasonable manner), and ending on the Exchange
Business Day on which Dealer completes the sale of all such Shares or Share Termination Delivery
Units, as the case may be, or a sufficient number of Shares or Share Termination Delivery Units, as
the case may be, so that the realized net proceeds of such sales exceed the Freely Tradeable Value
(such amount of the Freely Tradeable Value, the “Required Proceeds”). If any of such delivered
Shares or Share Termination Delivery Units remain after such realized net proceeds exceed the
Required Proceeds, Dealer shall return such remaining Shares or Share Termination Delivery Units to
Issuer. If the Required Proceeds exceed the realized net proceeds from such resale, Issuer shall
transfer to Dealer by the open of the regular trading session on the Exchange on the Exchange
Business Day immediately following the last day of the Resale Period the amount of such excess (the
“Additional Amount”) in cash or in a number of additional Shares or Share Termination Delivery
Units, as the case may be (“Make-whole Shares”), in an amount that, based on the market value of
such Make-whole Shares, as determined by the Calculation Agent, on the last day of the Resale
Period, has a dollar value equal to the Additional Amount. The Resale Period shall continue to
enable the sale of the Make-whole Shares in the manner contemplated by this Section 8(c). This
provision shall be applied successively until the Additional Amount is equal to zero, subject to
Section 8(e).

(d) Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement or this
Confirmation, in no event shall Dealer be entitled to receive, or shall be deemed to receive, any
Shares in connection with this Transaction if, immediately upon giving effect to such receipt of
such Shares (i) Dealer’s Beneficial Ownership would be equal to or greater than 8.0% of the
outstanding Shares or (ii) Dealer or any “affiliate” or “associate” of Dealer, would be an
“interested stockholder” of Issuer, as all such terms are defined in Section 203 of the Delaware
General Corporation Law (each of clause (i) and (ii) above, an “Ownership Limitation”). If any
delivery owed to Dealer hereunder is not made, in whole or in part, as a result of an Ownership
Limitation, Dealer’s right to receive such delivery shall not be extinguished and Issuer shall make
such delivery as promptly as practicable after, but in no event later than one Exchange Business
Day after, Dealer gives notice to Issuer that such delivery would not result in any of such
Ownership Limitations being breached. “Dealer’s Beneficial Ownership” means the “beneficial
ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated
thereunder (collectively, “Section 13”) of Shares by Dealer, together with any affiliate or other
person subject to aggregation with Dealer under Section 13, or by any “group” (within the meaning
of Section 13) of which Dealer is or may be deemed to be a part. Notwithstanding anything in the
Agreement or this Confirmation to the contrary, Dealer (or the affiliate designated by Dealer
pursuant to Section 8(l) below) shall not become the record or beneficial owner, or otherwise have
any rights as a holder, of any Shares that Dealer (or such affiliate) is not entitled to receive at
any time pursuant to this Section 8(d), until such time as such Shares are delivered pursuant to
this Section 8(d).

(e) Limitations on Settlement by Issuer. Notwithstanding anything herein or in the Agreement
to the contrary, in no event shall Issuer be required to deliver Shares in connection with the
Transaction in excess of 9,687,674 Shares (the “Capped Number”). Issuer represents and warrants
(which shall be deemed to be repeated on each day that the Transaction is outstanding) that the
Capped Number is equal to or less than the number of authorized but unissued Shares of the Issuer
that are not reserved for future issuance in connection with transactions in the Shares (other than
the Transaction) on the date of the determination of the Capped Number (such Shares, the “Available
Shares”). In the event Issuer shall not have delivered the full number of Shares otherwise
deliverable as a result of this Section 8(e) (the resulting deficit, the “Deficit Shares”), Issuer
shall be continually obligated to deliver, from time to time until the full number of Deficit
Shares have been delivered pursuant to this paragraph, Shares when, and to the extent, that (i)
Shares are repurchased, acquired or otherwise received by Issuer or any of its subsidiaries after
the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (ii)
authorized and unissued Shares reserved for issuance in respect of other transactions prior to such
date which prior to the relevant date become no longer so reserved or (iii) Issuer additionally
authorizes any unissued Shares that are not reserved for other transactions. Issuer shall
immediately notify Dealer of the occurrence of any of the foregoing events (including the number of
Shares subject to clause (i), (ii) or (iii) and the corresponding number of Shares to be delivered)
and promptly deliver such Shares thereafter.

(f) Right to Extend. Dealer may postpone any Exercise Date or any other date of valuation or
delivery with respect to some or all of the relevant Warrants (in which event the Calculation Agent
shall make appropriate adjustments to the Number of Shares to be Delivered with respect to one or
more Components), if Dealer determines, in its reasonable discretion, that such extension is
reasonably necessary or appropriate to preserve Dealer’s hedging or hedge unwind activity hereunder
in light of existing liquidity conditions or to enable Dealer to effect purchases of Shares in
connection with its hedging, hedge unwind or settlement activity hereunder in a manner that would,
if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with applicable legal,
regulatory or self-regulatory requirements, or with related policies and procedures applicable to
Dealer.

(g) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Issuer’s bankruptcy. For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during Issuer’s bankruptcy to
any claim arising as a result of a breach by Issuer of any of its obligations under this
Confirmation or the Agreement. For the avoidance of doubt, the parties acknowledge that this
Confirmation is not secured by any collateral that would otherwise secure the obligations of Issuer
herein under or pursuant to any other agreement.

(h) Amendments to Equity Definitions and the Agreement. The following amendments shall be
made to the Equity Definitions and to the Agreement:

(i) The first sentence of Section 11.2(c) of the Equity Definitions, prior to clause
(A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent Adjustment” is
specified as the Method of Adjustment in the related Confirmation of a Share Option
Transaction, then following the announcement or occurrence of any Potential Adjustment
Event, the Calculation Agent will determine whether such Potential Adjustment Event has a
material effect on the theoretical value of the relevant Shares or options on the Shares
and, if so, will (i) make appropriate adjustment(s), if any, to any one or more of:’ and,
the portion of such sentence immediately preceding clause (ii) thereof is hereby amended by
deleting the words “diluting or concentrative” and the words “(provided that no adjustments
will be made to account solely for changes in volatility, expected dividends, stock loan
rate or liquidity relative to the relevant Shares)” and replacing such latter phrase with
the words “(and, for the avoidance of doubt, adjustments may be made to account solely for
changes in volatility, expected dividends, stock loan rate or liquidity relative to the
relevant Shares)”;

(ii) Section 11.2(a) and 11.2(e)(vii) of the Equity Definitions is hereby amended by
deleting the words “diluting or concentrative” and replacing them with “material” and adding
the phrase “or Warrants” at the end of the sentence;

(iii) Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting
from the fourth line thereof the word “or” after the word “official” and inserting a comma
therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting
the following words therefor “or (C) at Dealer’s option, the occurrence of any of the events
specified in Section 5(a)(vii) (1) through (9) of the ISDA 2002 Master Agreement with
respect to that Issuer;”

(iv) Section 12.9(b)(iv) of the Equity Definitions is hereby amended by:

(x) deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)”
following subsection (A) and (3) the phrase “in each case” after subsection
(B); and

(y) deleting the phrase “neither the Non-Hedging Party nor the Lending Party
lends Shares in the amount of the Hedging Shares or” in the penultimate
sentence;

(v) Section 12.9(b)(v) of the Equity Definitions is hereby amended by:

(x) adding the word “or” immediately before subsection “(B)” and deleting the
comma at the end of subsection (A); and

(y) (1) prior to the period at the end of subsection (C), adding the phrase
“, subject to the Non-Hedging Party having entered into such documentation
containing representations, warranties and agreements relating to securities
law and other issues as requested by the Hedging Party that the Hedging Party
has determined, in its reasonable discretion, to be reasonably necessary or
appropriate to allow the Hedging Party to preserve its hedging or hedge
unwind activities in connection with the Transaction in a manner compliant
with applicable legal, regulatory or self-regulatory requirements, or with
related policies and procedures applicable to the Hedging Party and (2)
deleting clause (X) in the final sentence.

(i) Repurchase Notices. Issuer shall, on any day on which Issuer effects any repurchase of
Shares, promptly give Dealer a written notice of such repurchase (a “Repurchase Notice”) on such
day if, following such repurchase, the Notice Percentage as determined on such day is (A) greater
than 6.0% and (B) greater by 0.5% than the Notice Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice
Percentage as of the date hereof). The “Notice Percentage” as of any day is the fraction,
expressed as a percentage, the numerator of which is the Number of Shares and the denominator of
which is the number of Shares outstanding on such day. In the event that Issuer fails to provide
Dealer with a Repurchase Notice on the day and in the manner specified in this Section 8(i) then
Issuer agrees to indemnify and hold harmless Issuer, its affiliates and their respective directors,
officers, employees, agents and controlling persons (Dealer and each such person being an
“Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or
actions in respect thereof), joint or several, to which such Indemnified Party may become subject
under applicable securities laws, including without limitation, Section 16 of the Exchange Act,
relating to or arising out of such failure. If for any reason the foregoing indemnification is
unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then
Issuer shall contribute, to the maximum extent permitted by law, to the amount paid or payable by
the Indemnified Party as a result of such loss, claim, damage or liability. In addition, Issuer
will reimburse any Indemnified Party for all reasonable expenses (including reasonable counsel fees
and expenses) as they are incurred (after notice to Issuer) in connection with the investigation
of, preparation for or defense or settlement of any pending or threatened claim or any action, suit
or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and
whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of
Issuer. This indemnity shall survive the completion of the Transaction contemplated by this
Confirmation and any assignment and delegation of the Transaction made pursuant to this
Confirmation or the Agreement shall inure to the benefit of any permitted assignee of Dealer.

(j) Transfer and Assignment. Either party may transfer any of its rights or obligations under
the Transaction pursuant to Section 7 of the Agreement. In addition, Dealer may transfer or assign
its rights and obligations hereunder and under the Agreement, in whole or in part, at any time to
any person or entity with the prior consent of Issuer, which consent shall not be unreasonably
withheld or delayed. If (i) at any time an Excess Ownership Position exists, or a Hedging
Disruption has occurred and is continuing, and if Dealer, in its discretion, is unable (including,
without limitation, by virtue of the absence of an Issuer consent) to effect a transfer or
assignment to a third party after using its commercially reasonable efforts on pricing terms
reasonably acceptable to Dealer and within a time period reasonably acceptable to Dealer such that
an Excess Ownership Position or a Hedging Disruption, as the case may be, no longer exists or (ii)
in cases other than an Excess Ownership Position or Hedging Disruption, (A) Issuer does not
promptly (but in no event later than two Scheduled Trading Days following the date of the Dealer’s
initial request for consent to a proposed transfer or assignment (the “Initial Request Date”))
notify Dealer as to whether or not it is providing its consent to such proposed transfer or
assignment or (B) (1) Issuer does not promptly (but in no event later than two Scheduled Trading
Days following the Initial Request Date) provide its consent to a proposed transfer or assignment
by Dealer for any reason whatsoever, (2) Dealer has used good faith efforts to identify, on or
prior to the third Scheduled Trading Day following the Initial Request Date, an alternative
transferee or assignee on pricing and other terms reasonably acceptable to Dealer and (3) either
Dealer does not, after using good faith efforts, timely identify such an alternative transferee or
Issuer does not promptly (but in no event later than four Scheduled Trading Days following the
Initial Request Date) provide its consent to a proposed transfer or assignment by Dealer to any
identified alternative transferee or assignee for any reason whatsoever, then Dealer may designate
any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated
Portion”) of the Transaction, (x) such that such Excess Ownership Position or Hedging Disruption,
as the case may be, no longer exists or (y) that the Dealer proposed to transfer or assign. In the
event that Dealer so designates an Early Termination Date with respect to a portion of the
Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section
8(a) of this Confirmation as if (i) an Early Termination Date had been designated in respect of a
Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Issuer shall
be the sole Affected Party with respect to such partial termination, (iii) such portion of the
Transaction shall be the only Terminated Transaction and (iv) the reference to “two Local Business
Days” in Section 6(d)(ii) of the Agreement were replaced with “five Local Business Days”. “Excess
Ownership Position” means any of the following: (i) the Equity Percentage exceeds 8.0%, (ii) the
Warrant Equity Percentage exceeds 14.5% or (iii) Dealer or any “affiliate” or “associate” of Dealer
would own in excess of 13% of the outstanding Shares for purposes of Section 203 of the Delaware
General Corporation Law. The “Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the number of Shares that Dealer and any of its
affiliates or any other person subject to aggregation with Dealer, for purposes of the “beneficial
ownership” test under Section 13 of the Exchange Act, or of any “group” (within the meaning of
Section 13) of which Dealer is or may be deemed to be a part, beneficially owns (within the meaning
of Section 13 of the Exchange Act) on such day and (B) the denominator of which is the number of
Shares outstanding on such day. The “Warrant Equity Percentage” as of any day is the fraction,
expressed as a percentage, of (A) the product of (x) the Number of Warrants and (y) the Warrant
Entitlement divided by (B) the number of Shares outstanding on such day.

(k) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Issuer and each of its employees, representatives, or other agents may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Issuer relating to such tax treatment and tax structure.

(l) Designation by Dealer. Notwithstanding any other provision in this Confirmation to the
contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other
securities to or from Issuer, Dealer may designate any of its affiliates to purchase, sell, receive
or deliver such shares or other securities and otherwise to perform Dealer obligations in respect
of the Transaction and any such designee may assume such obligations. Dealer shall be discharged
of its obligations to Issuer to the extent of any such performance.

(m) Additional Termination Events. The occurrence of any of the following shall constitute an
Additional Termination Event with respect to which the Transaction shall be the sole Affected
Transaction and Issuer shall be the sole Affected Party; provided that with respect to any
Additional Termination Event, Dealer may choose to treat part of the Transaction as the sole
Affected Transaction, and, upon the termination of the Affected Transaction, a Transaction with
terms identical to those set forth herein except with a Number of Warrants equal to the unaffected
number of Warrants shall be treated for all purposes as the Transaction, which shall remain in full
force and effect:

(i) Dealer reasonably determines that it is advisable to terminate a portion of the
Transaction so that Dealer’s related hedging activities will comply with applicable
securities laws, rules or regulations;

(ii) any Person (as defined below) or “group” (within the meaning of Section 13(d) of
the Exchange Act), other than Issuer or its subsidiaries, files a Schedule TO or any
schedule, form or report under the Exchange Act disclosing that such person or group has
become the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the
Exchange Act, of more than 50% of the voting power of all shares of Issuer’s capital stock
entitled to vote generally in elections of directors;

(iii) consummation of any binding share exchange, consolidation or merger of Issuer
pursuant to which the Shares will be converted into cash, securities or other property or
any sale, lease or other transfer in one transaction or a series of transactions of all or
substantially all of the consolidated assets of Issuer and its subsidiaries, taken as a
whole, to any Person other than one of Issuer’s subsidiaries, other than any transaction
pursuant to which holders of the Issuer’s capital stock immediately prior to the transaction
have the entitlement to exercise, directly or indirectly, 50% or more of the total voting
power of all shares of capital stock entitled to vote generally in elections of directors of
the continuing or surviving or successor person immediately after giving effect to such
issuance;

(iv) continuing directors cease to constitute at least a majority of the Issuer’s board
of directors;

(v) Issuer’s stockholders approve any plan or proposal for liquidation or dissolution
of Issuer; or

(vi) the Shares cease to be listed on a U.S. national or regional securities exchange.

Notwithstanding the foregoing, a transaction or transactions set forth in clause (ii) or (iii)
above will not constitute an Additional Termination Event if at least 90% of the consideration paid
for the Shares (excluding cash payments for fractional shares) in such transaction or transactions
otherwise constituting an Additional Termination Event consists of shares of common stock traded on
any of the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or
the NASDAQ Global Market (or any of their respective successors) (or will be so traded or quoted
immediately following the completion of such transaction or transactions).

“Person” includes any syndicate or group that would be deemed to be a “person” under Section
13(d)(3) of the Exchange Act.

“Continuing Director” means a director who either was a member of Issuer’s board of directors
on the Trade Date or who becomes a member of the board of directors subsequent to that date and
whose election, appointment or nomination for election by Issuer’s stockholders is duly approved by
a majority of the continuing directors on Issuer’s board of directors at the time of such approval,
either by a specific vote or by approval of the proxy statement issued by Issuer on behalf of the
entire board of directors in which such individual is named as nominee for director.

(n) Netting and Set-off. Notwithstanding any provision of the Agreement (including without
limitation Section 6(f) thereof) and this Confirmation (including without limitation this Section
8(n)) or any other agreement between the parties to the contrary, (A) neither party shall net or
set off its obligations under the Transaction, if any, against its rights against the other party
under any other transaction or instrument, provided that either party may net and set off any
rights of Dealer against Issuer arising under the Transaction only against obligations of Dealer to
Issuer arising under any transaction or instrument if such transaction or instrument does not
convey rights to Dealer senior to the claims of common stockholders in the event of Issuer’s
bankruptcy and (B) in the event of the bankruptcy or liquidation of Issuer, neither party shall
have the right to set off any obligation that it may have to the other party under the Transaction
against any obligation such other party may have to it under the Agreement, this Confirmation or
any other agreement between the parties hereto, by operation of law or otherwise. The relevant
party will give notice to the other party of any netting or set off effected under this provision.

(o) Effectiveness. If, prior to the Effective Date, Dealer reasonably determines that it is
advisable to cancel the Transaction because of concerns that Dealer’s related hedging activities
could be viewed as not complying with applicable securities laws, rules or regulations, the
Transaction shall be cancelled and shall not become effective, and neither party shall have any
obligation to the other party in respect of the Transaction.

(p) Miscellaneous.

(A) Issuer and, on behalf of Dealer, Agent, each is aware of and agrees to be bound by the
rules of the Financial Industry Regulatory Authority (“FINRA”) applicable to option trading
and is aware of and agrees not to violate, either alone or in concert with others, the
position or exercise limits established by the FINRA. Notwithstanding the foregoing,
nothing herein shall constitute a submission to the jurisdiction of the FINRA, including
its arbitration provisions, by Issuer or Dealer.

(B) The time of dealing will be confirmed by Dealer upon written request. The Agent will
furnish to Issuer upon written request a statement as to the source and amount of any
remuneration received or to be received by the Agent in connection with the Transaction.
Dealer is regulated by the Financial Services Authority.

(C) Dealer is acting for its own account in respect of this Transaction and has instructed
the Agent to act as its agent pursuant to instructions of Dealer.

(D) Each of the parties hereto understands and acknowledges that the Transaction has not
and will not be registered under the Securities Act.

(q) Waiver of Trial by Jury. EACH OF ISSUER AND BUYER HEREBY IRREVOCABLY WAIVES (ON ITS OWN
BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF BUYER OR ITS AFFILIATES
IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

(r) Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

1

Please confirm that the foregoing correctly sets forth the terms and conditions of our
agreement with respect to the Transaction by executing this Confirmation and returning it to us by
facsimile marked for the attention of Equity Derivatives Incoming Team, OTC Transaction Management,
on +44 (020) 7516 8226. If you have any queries regarding the content of the Confirmation, please
do not hesitate to contact us on +44 (020) 7773 0034 or via e-mail address:
EquityDerivsIncoming@barcap.com. Your failure to respond to this Confirmation shall not affect the
validity or enforceability of this Transaction against you.

Yours sincerely,

For and on behalf of:

BARCLAYS CAPITAL INC.,

as Agent for BARCLAYS BANK PLC

	 	 	 	By:

Name:

Authorised Signatory

Confirmed as of the

date first above written:

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.

By: /s/ David Wilson

Name: David Wilson

Title: Senior Vice President and

Chief Financial Officer

2

ANNEX A

For each Component of the Transaction, the Number of Warrants and Expiration Date is set forth
below.

	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	1.

	 	 	40,366	 	 	May 30, 2013
	2.

	 	 	40,366	 	 	May 31, 2013
	3.

	 	 	40,366	 	 	June 3, 2013
	4.

	 	 	40,366	 	 	June 4, 2013
	5.

	 	 	40,366	 	 	June 5, 2013
	6.

	 	 	40,366	 	 	June 6, 2013
	7.

	 	 	40,366	 	 	June 7, 2013
	8.

	 	 	40,366	 	 	June 10, 2013
	9.

	 	 	40,366	 	 	June 11, 2013
	10.

	 	 	40,366	 	 	June 12, 2013
	11.

	 	 	40,366	 	 	June 13, 2013
	12.

	 	 	40,366	 	 	June 14, 2013
	13.

	 	 	40,366	 	 	June 17, 2013
	14.

	 	 	40,366	 	 	June 18, 2013
	15.

	 	 	40,366	 	 	June 19, 2013
	16.

	 	 	40,366	 	 	June 20, 2013
	17.

	 	 	40,366	 	 	June 21, 2013
	18.

	 	 	40,366	 	 	June 24, 2013
	19.

	 	 	40,366	 	 	June 25, 2013
	20.

	 	 	40,366	 	 	June 26, 2013
	21.

	 	 	40,366	 	 	June 27, 2013
	22.

	 	 	40,366	 	 	June 28, 2013
	23.

	 	 	40,366	 	 	July 1, 2013
	24.

	 	 	40,366	 	 	July 2, 2013
	25.

	 	 	40,366	 	 	July 3, 2013
	26.

	 	 	40,366	 	 	July 5, 2013
	27.

	 	 	40,366	 	 	July 8, 2013
	28.

	 	 	40,366	 	 	July 9, 2013
	29.

	 	 	40,366	 	 	July 10, 2013
	30.

	 	 	40,366	 	 	July 11, 2013
	31.

	 	 	40,366	 	 	July 12, 2013
	32.

	 	 	40,366	 	 	July 15, 2013
	33.

	 	 	40,366	 	 	July 16, 2013
	34.

	 	 	40,366	 	 	July 17, 2013
	35.

	 	 	40,366	 	 	July 18, 2013
	36.

	 	 	40,366	 	 	July 19, 2013
	37.

	 	 	40,366	 	 	July 22, 2013
	38.

	 	 	40,366	 	 	July 23, 2013
	39.

	 	 	40,366	 	 	July 24, 2013
	40.

	 	 	40,366	 	 	July 25, 2013
	41.

	 	 	40,366	 	 	July 26, 2013
	42.

	 	 	40,366	 	 	July 29, 2013
	43.

	 	 	40,366	 	 	July 30, 2013
	44.

	 	 	40,366	 	 	July 31, 2013
	45.

	 	 	40,366	 	 	August 1, 2013
	46.

	 	 	40,366	 	 	August 2, 2013
	47.

	 	 	40,366	 	 	August 5, 2013
	48.

	 	 	40,366	 	 	August 6, 2013
	49.

	 	 	40,366	 	 	August 7, 2013
	50.

	 	 	40,366	 	 	August 8, 2013
	51.

	 	 	40,366	 	 	August 9, 2013
	52.

	 	 	40,366	 	 	August 12, 2013
	53.

	 	 	40,366	 	 	August 13, 2013
	54.

	 	 	40,366	 	 	August 14, 2013
	55.

	 	 	40,366	 	 	August 15, 2013
	56.

	 	 	40,366	 	 	August 16, 2013
	57.

	 	 	40,366	 	 	August 19, 2013
	58.

	 	 	40,366	 	 	August 20, 2013
	59.

	 	 	40,366	 	 	August 21, 2013
	60.

	 	 	40,366	 	 	August 22, 2013
	61.

	 	 	40,366	 	 	August 23, 2013
	62.

	 	 	40,366	 	 	August 26, 2013
	63.

	 	 	40,366	 	 	August 27, 2013
	64.

	 	 	40,366	 	 	August 28, 2013
	65.

	 	 	40,366	 	 	August 29, 2013
	66.

	 	 	40,366	 	 	August 30, 2013
	67.

	 	 	40,366	 	 	September 3, 2013
	68.

	 	 	40,366	 	 	September 4, 2013
	69.

	 	 	40,366	 	 	September 5, 2013
	70.

	 	 	40,366	 	 	September 6, 2013
	71.

	 	 	40,366	 	 	September 9, 2013
	72.

	 	 	40,366	 	 	September 10, 2013
	73.

	 	 	40,366	 	 	September 11, 2013
	74.

	 	 	40,366	 	 	September 12, 2013
	75.

	 	 	40,366	 	 	September 13, 2013
	76.

	 	 	40,366	 	 	September 16, 2013
	77.

	 	 	40,366	 	 	September 17, 2013
	78.

	 	 	40,366	 	 	September 18, 2013
	79.

	 	 	40,366	 	 	September 19, 2013
	80.

	 	 	40,366	 	 	September 20, 2013
	81.

	 	 	40,366	 	 	September 23, 2013
	82.

	 	 	40,366	 	 	September 24, 2013
	83.

	 	 	40,366	 	 	September 25, 2013
	84.

	 	 	40,366	 	 	September 26, 2013
	85.

	 	 	40,366	 	 	September 27, 2013
	86.

	 	 	40,366	 	 	September 30, 2013
	87.

	 	 	40,366	 	 	October 1, 2013
	88.

	 	 	40,366	 	 	October 2, 2013
	89.

	 	 	40,366	 	 	October 3, 2013
	90.

	 	 	40,366	 	 	October 4, 2013
	91.

	 	 	40,366	 	 	October 7, 2013
	92.

	 	 	40,366	 	 	October 8, 2013
	93.

	 	 	40,366	 	 	October 9, 2013
	94.

	 	 	40,366	 	 	October 10, 2013
	95.

	 	 	40,366	 	 	October 11, 2013
	96.

	 	 	40,366	 	 	October 14, 2013
	97.

	 	 	40,366	 	 	October 15, 2013
	98.

	 	 	40,366	 	 	October 16, 2013
	99.

	 	 	40,366	 	 	October 17, 2013
	100.

	 	 	40,366	 	 	October 18, 2013
	101.

	 	 	40,366	 	 	October 21, 2013
	102.

	 	 	40,366	 	 	October 22, 2013
	103.

	 	 	40,366	 	 	October 23, 2013
	104.

	 	 	40,366	 	 	October 24, 2013
	105.

	 	 	40,366	 	 	October 25, 2013
	106.

	 	 	40,366	 	 	October 28, 2013
	107.

	 	 	40,366	 	 	October 29, 2013
	108.

	 	 	40,366	 	 	October 30, 2013
	109.

	 	 	40,366	 	 	October 31, 2013
	110.

	 	 	40,366	 	 	November 1, 2013
	111.

	 	 	40,366	 	 	November 4, 2013
	112.

	 	 	40,366	 	 	November 5, 2013
	113.

	 	 	40,366	 	 	November 6, 2013
	114.

	 	 	40,366	 	 	November 7, 2013
	115.

	 	 	40,366	 	 	November 8, 2013
	116.

	 	 	40,366	 	 	November 11, 2013
	117.

	 	 	40,366	 	 	November 12, 2013
	118.

	 	 	40,366	 	 	November 13, 2013
	119.

	 	 	40,366	 	 	November 14, 2013
	120.

	 	 	40,283	 	 	November 15, 2013

3

ANNEX B

	 	 	The Strike Price, Premium and Final Disruption Date for the Transaction are set forth below.

	 	 	 
	Strike Price:

	 	USD16.422
	Premium:

	 	USD4,926,250.00
	Final Disruption Date:November 27, 2013.

	To:

From:

	 	April 4, 2008

Alaska Communications Systems Group, Inc.

600 Telephone Ave.

Anchorage, Alaska 99503

Attn:David Wilson

Telephone:907-297-3000

Facsimile:907-297-3052

Bank of America, N.A.

c/o Banc of America Securities LLC

9 West 57th Street

New York, NY 10019

Attn: John Servidio

Telephone:212-847-6527

Facsimile:212-230-8610
	Re:

	 	Issuer Warrant Transaction

(Transaction Reference Number: NY-34146)

Ladies and Gentlemen:

The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below, as
amended on April 4, 2008 (the “Transaction”), between Bank of America, N.A. (“Dealer”) and Alaska
Communications Systems Group, Inc. (“Issuer”). This communication constitutes a “Confirmation” as
referred to in the ISDA Master Agreement specified below.

5. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA
Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2006 Definitions,
the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2006 Definitions and the
Equity Definitions, the Equity Definitions will govern. For purposes of the Equity Definitions,
each reference herein to a Warrant shall be deemed to be a reference to a Call Option or an Option,
as context requires.

This Confirmation evidences a complete and binding agreement between Dealer and Issuer as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to, an agreement in the form of the ISDA 2002 Master
Agreement (the “Agreement”), as if Dealer and Issuer had executed an agreement in such form
(without any Schedule but with the elections set forth in this Confirmation) on the Trade Date.
For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

6. The Transaction is a Warrant Transaction, which shall be considered a Share Option
Transaction for purposes of the Equity Definitions. The terms of the particular Transaction to
which this Confirmation relates are as follows:

	 	 	 
	General Terms:

	 	

	Trade Date:

	 	April 2, 2008.

	 	 	 	Effective Date: April 8, 2008, or such other date as agreed between the parties, subject to
Section 8(o) below.

	 	 	 	Components: The Transaction will be divided into individual Components, each with the terms
set forth in this Confirmation, and, in particular, with the Number of Warrants and
Expiration Date set forth in this Confirmation. The payments and deliveries to be made
upon settlement of the Transaction will be determined separately for each Component as
if each Component were a separate Transaction under the Agreement.

	 	 	 
	Warrant Style:

Warrant Type:

Seller:

Buyer:

	 	European.

Call.

Issuer.

Dealer.

	 	 	 	Shares: The Common Stock of Issuer, par value USD0.01 per share (Ticker Symbol: “ALSK”).

	 	 	 	Number of Warrants: For each Component, as provided in Annex A to this Confirmation.

	 	 	 
	Warrant Entitlement:

Strike Price:

	 	One Share per Warrant.

As provided in Annex B to this Confirmation.
	
 
	 	 
	Premium:

	 	As provided in Annex B to this Confirmation.
	
 
	 	 
	Premium Payment Date:

	 	The Effective Date.

	 	 	 	Exchange: The NASDAQ Global Select Market of the Nasdaq Stock Market, Inc.

	 	 	 
	Related Exchange:

	 	All Exchanges.
	Procedures for Exercise:

	 	

	In respect of any Component:

	 	

	Expiration Time:

	 	Valuation Time.

	 	 	 	Expiration Date: As provided in Annex A to this Confirmation (or, if such date is
not a Scheduled Trading Day, the next following Scheduled Trading Day that is not
already an Expiration Date for another Component); provided that if that date is a
Disrupted Day, the Expiration Date for such Component shall be the first succeeding
Scheduled Trading Day that is not a Disrupted Day and is not or is not deemed to be an
Expiration Date in respect of any other Component of the Transaction hereunder; and
provided further that if the Expiration Date has not occurred pursuant to the preceding
proviso as of the Final Disruption Date, the Final Disruption Date shall be the
Expiration Date (irrespective of whether such date is an Expiration Date occurring on
the Final Disruption Date in respect of any other Component for the Transaction) and,
notwithstanding anything to the contrary in this Confirmation or the Equity
Definitions, the Relevant Price for the Expiration Date shall be the prevailing market
value per Share determined by the Calculation Agent in a commercially reasonable
manner. Notwithstanding the foregoing and anything to the contrary in the Equity
Definitions, if a Market Disruption Event occurs on any Expiration Date, the
Calculation Agent may determine that such Expiration Date is a Disrupted Day only in
part, in which case the Calculation Agent shall make adjustments to the number of
Warrants for the relevant Component for which such day shall be the Expiration Date and
shall designate the Scheduled Trading Day determined in the manner described in the
immediately preceding sentence as the Expiration Date for the remaining Warrants for
such Component. Section 6.6 of the Equity Definitions shall not apply to any Valuation
Date occurring on an Expiration Date. “Final Disruption Date” has the meaning provided
in Annex B to this Confirmation.

	 	 	 	Market Disruption Event: Section 6.3(a) of the Equity Definitions is hereby amended by
deleting the words “during the one hour period that ends at the relevant Valuation
Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the
case may be,” in clause (ii) thereof.

Section 6.3(d) of the Equity Definitions is hereby
amended by deleting the remainder of the provision
following the term “Scheduled Closing Time” in the
fourth line thereof.

	 	 	 	Automatic Exercise: Applicable; and means that the Number of Warrants for each Component
will be deemed to be automatically exercised at the Expiration Time on the Expiration
Date for such Component unless Dealer notifies Seller (by telephone or in writing)
prior to the Expiration Time on the Expiration Date that it does not wish Automatic
Exercise to occur, in which case Automatic Exercise will not apply.

	 	 	 
	Issuer’s Telephone Number

and Telex and/or Facsimile Number

and Contact Details for purpose of

Giving Notice:

	 	

To be provided by Issuer.
	Settlement Terms:

	 	

	In respect of any Component:

	 	

	Settlement Currency:

	 	USD.

	 	 	 	Net Share Settlement: On each Settlement Date, Issuer shall deliver to Dealer a
number of Shares equal to the Number of Shares to be Delivered for such Settlement Date
to the account specified by Dealer and cash in lieu of any fractional shares valued at
the Relevant Price on the Valuation Date corresponding to such Settlement Date.

	 	 	 	Number of Shares to be Delivered: In respect of any Exercise Date, subject to the last
sentence of Section 9.5 of the Equity Definitions, the product of (i) the number of
Warrants exercised or deemed exercised on such Exercise Date, (ii) the Warrant
Entitlement and (iii) (A) the excess, if any, of the Relevant Price on the Valuation
Date occurring on such Exercise Date over the Strike Price divided by (B) such Relevant
Price.

The Number of Shares to be Delivered shall be delivered
by Issuer to Dealer no later than 12:00 noon (local
time in New York City) on the relevant Settlement Date.

	 	 	 	Relevant Price: For any Valuation Date, the Rule 10b-18 dollar volume weighted average price
per Share for such Valuation Date based on transactions executed during such Valuation
Date, as reported on Bloomberg Page “ALSK.UQ <Equity> AQR SEC” (or any successor
thereto) or, in the event such price is not so reported on such Valuation Date for any
reason, as reasonably determined by the Calculation Agent.

	 	 	 	Other Applicable Provisions: The provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11
(except that the Representation and Agreement contained in Section 9.11 of the Equity
Definitions shall be modified by excluding any representations therein relating to
restrictions, obligations, limitations or requirements under applicable securities laws
as a result of the fact that Seller is the Issuer of the Shares) and 9.12 of the Equity
Definitions will be applicable as if “Physical Settlement” applied to the Transaction.

	 	 	 
	Adjustments:

	 	

	In respect of any Component:

	 	

	Method of Adjustment:

	 	Calculation Agent Adjustment.

	 	 	 	Extraordinary Dividend: Any dividend or distribution (i) that has an ex-dividend date
occurring after the Trade Date and on or prior to the Expiration Date and (ii) the
amount or value of which differs from the Ordinary Dividend Amount for such dividend or
distribution, as determined by the Calculation Agent.

	 	 	 	Ordinary Dividend Amount: USD 0.215 per quarter.

	 	 	Extraordinary Events:

	 	 	 	New Shares: In the definition of New Shares in Section 12.1(i) of the Equity
Definitions, (a) the text in clause (i) thereof shall be deleted in its entirety
(including the word “and” following clause (i)) and replaced with “publicly quoted,
traded or listed on any of the New York Stock Exchange, the American Stock Exchange,
the NASDAQ Global Select Market or the NASDAQ Global Market (or their respective
successors),” and (b) the phrase “and (iii) of an entity or person organized under the
laws of the United States, any State thereof or the District of Columbia” shall be
inserted immediately prior to the period.

	 	 	 	 	 
	Consequences of Merger Events:
	 	 
	(a)

(b)

(c)

Tender Offer:

	 	Share-for-Share:

Share-for-Other:

Share-for-Combined:
	 	Modified Calculation Agent Adjustment.

Cancellation and Payment (Calculation Agent Determination).

Cancellation and Payment (Calculation Agent Determination).

Applicable.
	Consequences of Tender Offers:
	 	 
	(a)

	 	Share-for-Share:
	 	Modified Calculation Agent Adjustment.

	 	(b)	 	Share-for-Other: Cancellation and Payment (Calculation Agent
Determination) on that portion of the Other Consideration that consists of cash;
Modified Calculation Agent Adjustment on the remainder of the Other Consideration.

	 	(c)	 	Share-for-Combined: Modified Calculation Agent Adjustment.

	 	 	 	Modified Calculation

	 	 	 	Agent Adjustment: If, in respect of any Merger Event or Tender Offer to which
Modified Calculation Agent Adjustment applies, the adjustments to be made in accordance
with Section 12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity
Definitions would result in Issuer being different from the issuer of the Shares, then
with respect to such Merger Event or Tender Offer, as a condition precedent to the
adjustments contemplated in Section 12.2(e)(i) or Section 12.3(d)(i), as the case may
be, of the Equity Definitions, Issuer and the issuer of the Shares shall, prior to the
Merger Date or Tender Offer, as the case may be, have entered into such documentation
containing representations, warranties and agreements relating to securities law and
other issues as requested by Dealer that Dealer has determined, in its reasonable
discretion, to be reasonably necessary or appropriate to allow Dealer to continue as a
party to the Transaction, as adjusted under Section 12.2(e)(i) or Section 12.3(d)(i),
as the case may be, of the Equity Definitions, and to preserve its hedging or hedge
unwind activities in connection with the Transaction in a manner compliant with
applicable legal, regulatory or self-regulatory requirements, or with related policies
and procedures applicable to Dealer, and if such conditions are not met or if the
Calculation Agent determines that no adjustment that it could make under Section
12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity Definitions will
produce a commercially reasonable result, then the consequences set forth in Section
12.2(e)(ii) or Section 12.3(d)(ii), as the case may be, of the Equity Definitions shall
apply.

	 	 	 	Nationalization, Insolvency

	 	•	 	r Delisting: Cancellation and Payment (Calculation Agent Determination); provided
that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions,
it shall also constitute a Delisting if the Exchange is located in the United States
and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New
York Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or
the NASDAQ Global Market (or their respective successors); if the Shares are
immediately re-listed, re-traded or re-quoted on any such exchange or quotation system,
such exchange or quotation system shall thereafter be deemed to be the Exchange.

	 	 	 	 	 
	Additional Disruption Events:
	 	 
	Acknowledgments:

	 	(a)Change in Law:

(b)Failure to Deliver:

(c)Insolvency Filing:

(d)Hedging Disruption:

(e) Increased Cost of Hedging:

(f) Loss of Stock Borrow:

Maximum Stock Loan Rate:

(g) Increased Cost of Stock Borrow:

Initial Stock Loan Rate:

Hedging Party:

Determining Party:

	 	Applicable.

Not Applicable.

Applicable.

Applicable.

Applicable.

Applicable.

100 basis points per annum.

Applicable.

50 basis points per annum.

Dealer for all applicable Additional Disruption Events.

Dealer for all applicable Additional Disruption Events.

	Non-Reliance:

	 	 	 	Applicable.
	Agreements and Acknowledgments
	 	 
	Regarding Hedging Activities:
	 	Applicable.
	Additional Acknowledgments:
	 	Applicable.
	7.

	 	Calculation Agent:
	 	Dealer.
	
 
	 	 
	 	

8. Account Details:

	 	 	 
	Dealer Payment Instructions:

Issuer Payment Instructions:

	 	Bank of America

New York, NY

SWIFT: BOFAUS65

Bank Routing: 026-009-593

Account Name: Bank of America

Account No.: 0012333-34172

First National Bank Alaska

ABA: 125 200 060

Account Name: Alaska Communications Systems

Account No.: 1512 540 4

5. Offices:

	 	 	 	 	 
	The Office of Dealer for the Transaction is:

	Bank of America, N.A.
	 	 	 	 
	c/o Banc of America Securities LLC

	9 West 57th Street, 40th Floor

	New York, NY 10019
Attention:
	 	John Servidio
	Telephone:
	 	 	212-847-6527	 
	Facsimile:
	 	 	212-230-8610	 

The Office of Issuer for the Transaction is: Not applicable.

6. Notices: For purposes of this Confirmation:

(a) Address for notices or communications to Issuer:

	 	 	 	 	 
	To:
	 	Alaska Communications Systems Group, Inc.
	 
	 	600 Telephone Ave.
	 
	 	Anchorage, Alaska 99503
	Attn:
	 	David Wilson
	Telephone:
	 	 	907-297-3000	 
	Facsimile:
	 	 	907-297-3052	 

(b) Address for notices or communications to Dealer:

	 	 	 	To: Bank of America, N.A.

	 	 	 	 	 
	c/o Banc of America Securities LLC

	9 West 57th Street, 40th Floor

	New York, NY 10019
Attn:
	 	John Servidio
	Telephone:
	 	 	212-847-6527	 
	Facsimile:
	 	 	212-230-8610	 

7. Representations, Warranties and Agreements:

(a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Issuer represents and warrants to and for the benefit of, and agrees with, Dealer
as follows:

(i) On the Trade Date, and as of the date of any election by Issuer of the Share
Termination Alternative under (and as defined in) Section 8(a) below, none of Issuer and its
officers and directors is aware of any material nonpublic information regarding Issuer or
the Shares. On the Trade Date, each of Issuer’s filings under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), that are required to be filed from and including
the ending date of Issuer’s most recent prior fiscal year have been filed.

(ii) Without limiting the generality of Section 13.1 of the Equity Definitions, Issuer
acknowledges that Dealer is not making any representations or warranties with respect to the
treatment of the Transaction under FASB Statements 128, 133, 149 (each as amended), or 150,
EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue statements), under FASB’s
Liabilities & Equity Project or under any other accounting guidance.

(iii) Prior to the Trade Date, Issuer shall deliver to Dealer a resolution of Issuer’s
board of directors authorizing the Transaction and such other certificate or certificates as
Dealer shall reasonably request.

(iv) Issuer is not entering into this Confirmation to create actual or apparent trading
activity in the Shares (or any security convertible into or exchangeable for Shares) or to
raise or depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

(v) Issuer is not, and after giving effect to the transactions contemplated hereby will
not be, an “investment company” as such term is defined in the Investment Company Act of
1940, as amended.

(vi) On the Trade Date (A) the assets of Issuer at their fair valuation exceed the
liabilities of Issuer, including contingent liabilities, (B) the capital of Issuer is
adequate to conduct the business of Issuer and (C) Issuer has the ability to pay its debts
and obligations as such debts mature and does not intend to, or does not believe that it
will, incur debt beyond its ability to pay as such debts mature.

(vii) Issuer shall not take any action to decrease the number of Available Shares below
the Capped Number (each as defined below).

(viii) Issuer understands no obligations of Dealer to it hereunder will be entitled to
the benefit of deposit insurance and that such obligations will not be guaranteed by any
Affiliate of Dealer or any governmental agency.

(ix) (A) During the period starting on the first Expiration Date and ending on the last
Expiration Date (the “Settlement Period”), the Shares or securities that are convertible
into, or exchangeable or exercisable for Shares, are not, and shall not be, subject to a
“restricted period,” as such term is defined in Regulation M under the Exchange Act
(“Regulation M”) and (B) Issuer shall not engage in any “distribution,” as such term is
defined in Regulation M, other than a distribution meeting the requirements of the
exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second
Exchange Business Day immediately following the Settlement Period.

(x) During the Settlement Period, neither Issuer nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any cash-settled or other
derivative instrument) purchase, offer to purchase, place any bid or limit order that would
effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent
interest, including a unit of beneficial interest in a trust or limited partnership or a
depository share) or any security convertible into or exchangeable or exercisable for
Shares, except through Dealer.

(xi) The Shares of Issuer initially issuable upon exercise of the Warrant (the “Warrant
Shares”) have been reserved for issuance by all required corporate action of Issuer. The
Warrant Shares have been duly authorized and, when delivered against payment therefor (which
may include Net Share Settlement in lieu of cash) and otherwise as contemplated by the terms
of the Warrant following the exercise of the Warrant in accordance with the terms and
conditions of the Warrant, will be validly issued, fully-paid and non-assessable, and the
issuance of the Warrant Shares will not be subject to any preemptive or similar rights.

(b) Each of Dealer and Issuer agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

(c) Each of Dealer and Issuer acknowledges that the offer and sale of the Transaction to it is
intended to be exempt from registration under the Securities Act of 1933, as amended (the
“Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Dealer represents and warrants
to Issuer that (i) it has the financial ability to bear the economic risk of its investment in the
Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor”
as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is
entering into the Transaction for its own account without a view to the distribution or resale
thereof and (iv) the assignment, transfer or other disposition of the Transaction has not been and
will not be registered under the Securities Act and is restricted under this Confirmation, the
Securities Act and state securities laws.

(d) Each of Dealer and Issuer agrees and acknowledges that Dealer is a “financial
institution,” “swap participant” and “financial participant” within the meaning of Sections
101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”). The
parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which
each payment and delivery hereunder or in connection herewith is a “termination value,” “payment
amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and
a “settlement payment” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap
agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to
which each payment and delivery hereunder or in connection herewith is a “termination value,” a
“payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy
Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer
is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17),
362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

(e) Issuer shall deliver to Dealer an opinion of counsel, dated as of the Effective Date and
reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in
Section 3(a) of the Agreement.

8. Other Provisions:

(a) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If, subject to Section 8(m) below, Issuer shall owe Dealer any amount pursuant to Sections
12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of an Insolvency, a
Nationalization, a Tender Offer or a Merger Event, in each case, in which the consideration or
proceeds to be paid to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii)
of the Agreement (except in the event of an Event of Default in which Issuer is the Defaulting
Party or a Termination Event in which Issuer is the Affected Party, that resulted from an event or
events within Issuer’s control) (a “Payment Obligation”), Issuer shall have the right, in its sole
discretion, to satisfy any such Payment Obligation by the Share Termination Alternative (as defined
below) by giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled
Trading Day, between the hours of 9:00 A.M. and 4:00 P.M. New York City time on the Merger Date,
Tender Offer Date, Announcement Date, Early Termination Date or other date the Transaction is
cancelled or terminated, as applicable (“Notice of Share Termination”), provided that if Issuer
does not elect to satisfy its Payment Obligation by the Share Termination Alternative, Dealer shall
have the right, in its sole discretion, to require Issuer to satisfy its Payment Obligation by the
Share Termination Alternative, notwithstanding Issuer’s failure to elect or election to the
contrary. Upon such Notice of Share Termination, the following provisions shall apply on the
Scheduled Trading Day immediately following the Merger Date, the Tender Offer Date, Announcement
Date, Early Termination Date or other date the Transaction is cancelled or terminated, as
applicable:

	 	 	 
	Share Termination Alternative:

Share Termination Delivery

Property:

Share Termination Unit Price:

Share Termination Delivery Unit:

Failure to Deliver:

Other applicable provisions:

	 	Applicable and means that Issuer shall

deliver to Dealer the Share Termination

Delivery Property on the date on which the

Payment Obligation would otherwise be due

pursuant to Section 12.7 or 12.9 of the

Equity Definitions or Section 6(d)(ii) of

the Agreement, as applicable (the “Share

Termination Payment Date”), in satisfaction

of the Payment Obligation.

A number of Share Termination Delivery

Units, as calculated by the Calculation

Agent, equal to the Payment Obligation

divided by the Share Termination Unit Price.

The Calculation Agent shall adjust the

Share Termination Delivery Property by

replacing any fractional portion of a

security therein with an amount of cash

equal to the value of such fractional

security based on the values used to

calculate the Share Termination Unit Price.

The value of property contained in one Share

Termination Delivery Unit on the date such

Share Termination Delivery Units are to be

delivered as Share Termination Delivery

Property, as determined by the Calculation

Agent in its discretion by commercially

reasonable means and notified by the

Calculation Agent to Issuer at the time of

notification of the Payment Obligation.

In the case of a Termination Event, Event of

Default, Delisting or Additional Disruption

Event, one Share or, in the case of an

Insolvency, Nationalization, Merger Event or

Tender Offer, a unit consisting of the

number or amount of each type of property

received by a holder of one Share (without

consideration of any requirement to pay cash

or other consideration in lieu of fractional

amounts of any securities) in such

Insolvency, Nationalization, Merger Event or

Tender Offer. If such Insolvency,

Nationalization, Merger Event or Tender

Offer involves a choice of consideration to

be received by holders, such holder shall be

deemed to have elected to receive the

maximum possible amount of cash.

Applicable.

If Share Termination Alternative is

applicable, the provisions of Sections 9.8,

9.9, 9.10, 9.11 (except that the

Representation and Agreement contained in

Section 9.11 of the Equity Definitions shall

be modified by excluding any representations

therein relating to restrictions,

obligations, limitations or requirements

under applicable securities laws as a result

of the fact that Seller is the Issuer of the

Shares) and 9.12 of the Equity Definitions

will be applicable as if “Physical

Settlement” applied to the Transaction,

except that all references to “Shares” shall

be read as references to “Share Termination

Delivery Units”.

(b) Registration/Private Placement Procedures. (i) If, in the reasonable judgment of Dealer,
for any reason, any Shares or any securities of Issuer or its affiliates comprising any Share
Termination Delivery Units deliverable to Dealer hereunder (any such Shares or securities,
“Delivered Securities”) would not be immediately freely transferable by Dealer under Rule 144 under
the Securities Act, then the provisions set forth in this Section 8(b) shall apply. At the
election of Issuer by notice to Dealer within one Scheduled Trading Day after the relevant delivery
obligation arises, but in any event at least one Scheduled Trading Day prior to the date on which
such delivery obligation is due, either (A) all Delivered Securities delivered by Issuer to Dealer
shall be, at the time of such delivery, covered by an effective registration statement of Issuer
for immediate resale by Dealer (such registration statement and the corresponding prospectus (the
“Prospectus”) (including, without limitation, any sections describing the plan of distribution) in
form and content commercially reasonably satisfactory to Dealer) or (B) Issuer shall deliver
additional Delivered Securities so that the value of such Delivered Securities, as determined by
the Calculation Agent to reflect an appropriate liquidity discount, equals the value of the number
of Delivered Securities that would otherwise be deliverable if such Delivered Securities were
freely tradeable (without prospectus delivery) upon receipt by Dealer (such value, the “Freely
Tradeable Value”); provided that Issuer may not make the election described in this clause (B) if,
on the date of its election, it has taken, or caused to be taken, any action that would make
unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the delivery by
Issuer to Dealer (or any affiliate designated by Dealer) of the Delivered Securities or the
exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the
Delivered Securities by Dealer (or any such affiliate of Dealer). (For the avoidance of doubt, as
used in this paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant
securities, as the context shall require.)

(ii) If Issuer makes the election described in clause (b)(i)(A) above:

(A) Dealer (or an Affiliate of Dealer designated by Dealer) shall be afforded a
reasonable opportunity to conduct a due diligence investigation with respect to Issuer that
is customary in scope for underwritten offerings of equity securities and that yields
results that are commercially reasonably satisfactory to Dealer or such Affiliate, as the
case may be, in its discretion; and

(B) Dealer (or an Affiliate of Dealer designated by Dealer) and Issuer shall enter into
an agreement (a “Registration Agreement”) on commercially reasonable terms in connection
with the public resale of such Delivered Securities by Dealer or such Affiliate
substantially similar to underwriting agreements customary for underwritten offerings of
equity securities, in form and substance commercially reasonably satisfactory to Dealer or
such Affiliate and Issuer, which Registration Agreement shall include, without limitation,
provisions substantially similar to those contained in such underwriting agreements relating
to the indemnification of, and contribution in connection with the liability of, Dealer and
its Affiliates and Issuer, shall provide for the payment by Issuer of reasonable expenses in
connection with such resale, including all registration costs and reasonable fees and
expenses of counsel for Dealer, and shall provide for the delivery of accountants’ “comfort
letters” to Dealer or such Affiliate with respect to the financial statements and certain
financial information contained in or incorporated by reference into the Prospectus.

(iii) If Issuer makes the election described in clause (b)(i)(B) above:

(A) Dealer (or an Affiliate of Dealer designated by Dealer) and any potential
institutional purchaser of any such Delivered Securities from Dealer or such Affiliate
identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a
due diligence investigation in compliance with applicable law with respect to Issuer
customary in scope for private placements of equity securities (including, without
limitation, the right to have made available to them for inspection all financial and other
records, pertinent corporate documents and other information reasonably requested by them);

(B) Dealer (or an Affiliate of Dealer designated by Dealer) and Issuer shall enter into
an agreement (a “Private Placement Agreement”) on commercially reasonable terms in
connection with the private placement of such Delivered Securities by Issuer to Dealer or
such Affiliate and the private resale of such shares by Dealer or such Affiliate,
substantially similar to private placement purchase agreements customary for private
placements of equity securities, in form and substance commercially reasonably satisfactory
to Dealer and Issuer, which Private Placement Agreement shall include, without limitation,
provisions substantially similar to those contained in such private placement purchase
agreements relating to the indemnification of, and contribution in connection with the
liability of, Dealer and its Affiliates and Issuer, shall provide for the payment by Issuer
of reasonable expenses in connection with such resale, including reasonable fees and
expenses of counsel for Dealer, shall contain representations, warranties and agreements of
Issuer reasonably necessary or advisable to establish and maintain the availability of an
exemption from the registration requirements of the Securities Act for such resales, and
shall use best efforts to provide for the delivery of accountants’ “comfort letters” to
Dealer or such Affiliate with respect to the financial statements and certain financial
information contained in or incorporated by reference into the offering memorandum prepared
for the resale of such Shares;

(C) Issuer agrees that any Delivered Securities so delivered to Dealer, (i) may be
transferred by and among Dealer and its Affiliates, and Issuer shall effect such transfer
without any further action by Dealer and (ii) after the minimum “holding period” within the
meaning of Rule 144(d) under the Securities Act has elapsed with respect to such Delivered
Securities, Issuer shall promptly remove, or cause the transfer agent for such Shares or
securities to remove, any legends referring to any such restrictions or requirements from
such Delivered Securities upon delivery by Dealer (or such Affiliate of Dealer) to Issuer or
such transfer agent of any seller’s and broker’s representation letters customarily
delivered by Dealer in connection with resales of restricted securities pursuant to Rule 144
under the Securities Act, without any further requirement for the delivery of any
certificate, consent, agreement, opinion of counsel, notice or any other document, any
transfer tax stamps or payment of any other amount or any other action by Dealer (or such
affiliate of Dealer); and

(D) Issuer shall not take, or cause to be taken, any action that would make unavailable
either the exemption pursuant to Section 4(2) of the Securities Act for the sale by Issuer
to Dealer (or any affiliate designated by Dealer) of the Shares or Share Termination
Delivery Units, as the case may be, or the exemption pursuant to Section 4(1) or Section
4(3) of the Securities Act for resales of the Shares or Share Termination Delivery Units, as
the case may be, by Dealer (or any such affiliate of Dealer).

(c) Make-whole. If Issuer makes the election described in clause (b)(i)(B) of paragraph (b) of
this Section 8, then Dealer or its affiliate may sell such Shares or Share Termination Delivery
Units, as the case may be, during a period (the “Resale Period”) commencing on the Exchange
Business Day following delivery of such Shares or Share Termination Delivery Units, as the case may
be (which sale shall be conducted in a commercially reasonable manner), and ending on the Exchange
Business Day on which Dealer completes the sale of all such Shares or Share Termination Delivery
Units, as the case may be, or a sufficient number of Shares or Share Termination Delivery Units, as
the case may be, so that the realized net proceeds of such sales exceed the Freely Tradeable Value
(such amount of the Freely Tradeable Value, the “Required Proceeds”). If any of such delivered
Shares or Share Termination Delivery Units remain after such realized net proceeds exceed the
Required Proceeds, Dealer shall return such remaining Shares or Share Termination Delivery Units to
Issuer. If the Required Proceeds exceed the realized net proceeds from such resale, Issuer shall
transfer to Dealer by the open of the regular trading session on the Exchange on the Exchange
Business Day immediately following the last day of the Resale Period the amount of such excess (the
“Additional Amount”) in cash or in a number of additional Shares or Share Termination Delivery
Units, as the case may be (“Make-whole Shares”), in an amount that, based on the market value of
such Make-whole Shares, as determined by the Calculation Agent, on the last day of the Resale
Period, has a dollar value equal to the Additional Amount. The Resale Period shall continue to
enable the sale of the Make-whole Shares in the manner contemplated by this Section 8(c). This
provision shall be applied successively until the Additional Amount is equal to zero, subject to
Section 8(e).

(d) Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement or this
Confirmation, in no event shall Dealer be entitled to receive, or shall be deemed to receive, any
Shares in connection with this Transaction if, immediately upon giving effect to such receipt of
such Shares (i) Dealer’s Beneficial Ownership would be equal to or greater than 8.0% of the
outstanding Shares or (ii) Dealer or any “affiliate” or “associate” of Dealer, would be an
“interested stockholder” of Issuer, as all such terms are defined in Section 203 of the Delaware
General Corporation Law (each of clause (i) and (ii) above, an “Ownership Limitation”). If any
delivery owed to Dealer hereunder is not made, in whole or in part, as a result of an Ownership
Limitation, Dealer’s right to receive such delivery shall not be extinguished and Issuer shall make
such delivery as promptly as practicable after, but in no event later than one Exchange Business
Day after, Dealer gives notice to Issuer that such delivery would not result in any of such
Ownership Limitations being breached. “Dealer’s Beneficial Ownership” means the “beneficial
ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated
thereunder (collectively, “Section 13”) of Shares by Dealer, together with any affiliate or other
person subject to aggregation with Dealer under Section 13, or by any “group” (within the meaning
of Section 13) of which Dealer is or may be deemed to be a part. Notwithstanding anything in the
Agreement or this Confirmation to the contrary, Dealer (or the affiliate designated by Dealer
pursuant to Section 8(l) below) shall not become the record or beneficial owner, or otherwise have
any rights as a holder, of any Shares that Dealer (or such affiliate) is not entitled to receive at
any time pursuant to this Section 8(d), until such time as such Shares are delivered pursuant to
this Section 8(d).

(e) Limitations on Settlement by Issuer. Notwithstanding anything herein or in the Agreement
to the contrary, in no event shall Issuer be required to deliver Shares in connection with the
Transaction in excess of 4,843,838 Shares (the “Capped Number”). Issuer represents and warrants
(which shall be deemed to be repeated on each day that the Transaction is outstanding) that the
Capped Number is equal to or less than the number of authorized but unissued Shares of the Issuer
that are not reserved for future issuance in connection with transactions in the Shares (other than
the Transaction) on the date of the determination of the Capped Number (such Shares, the “Available
Shares”). In the event Issuer shall not have delivered the full number of Shares otherwise
deliverable as a result of this Section 8(e) (the resulting deficit, the “Deficit Shares”), Issuer
shall be continually obligated to deliver, from time to time until the full number of Deficit
Shares have been delivered pursuant to this paragraph, Shares when, and to the extent, that (i)
Shares are repurchased, acquired or otherwise received by Issuer or any of its subsidiaries after
the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (ii)
authorized and unissued Shares reserved for issuance in respect of other transactions prior to such
date which prior to the relevant date become no longer so reserved or (iii) Issuer additionally
authorizes any unissued Shares that are not reserved for other transactions. Issuer shall
immediately notify Dealer of the occurrence of any of the foregoing events (including the number of
Shares subject to clause (i), (ii) or (iii) and the corresponding number of Shares to be delivered)
and promptly deliver such Shares thereafter.

(f) Right to Extend. Dealer may postpone any Exercise Date or any other date of valuation or
delivery with respect to some or all of the relevant Warrants (in which event the Calculation Agent
shall make appropriate adjustments to the Number of Shares to be Delivered with respect to one or
more Components), if Dealer determines, in its reasonable discretion, that such extension is
reasonably necessary or appropriate to preserve Dealer’s hedging or hedge unwind activity hereunder
in light of existing liquidity conditions or to enable Dealer to effect purchases of Shares in
connection with its hedging, hedge unwind or settlement activity hereunder in a manner that would,
if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with applicable legal,
regulatory or self-regulatory requirements, or with related policies and procedures applicable to
Dealer.

(g) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Issuer’s bankruptcy. For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during Issuer’s bankruptcy to
any claim arising as a result of a breach by Issuer of any of its obligations under this
Confirmation or the Agreement. For the avoidance of doubt, the parties acknowledge that this
Confirmation is not secured by any collateral that would otherwise secure the obligations of Issuer
herein under or pursuant to any other agreement.

(h) Amendments to Equity Definitions and the Agreement. The following amendments shall be
made to the Equity Definitions and to the Agreement:

(i) The first sentence of Section 11.2(c) of the Equity Definitions, prior to clause
(A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent Adjustment” is
specified as the Method of Adjustment in the related Confirmation of a Share Option
Transaction, then following the announcement or occurrence of any Potential Adjustment
Event, the Calculation Agent will determine whether such Potential Adjustment Event has a
material effect on the theoretical value of the relevant Shares or options on the Shares
and, if so, will (i) make appropriate adjustment(s), if any, to any one or more of:’ and,
the portion of such sentence immediately preceding clause (ii) thereof is hereby amended by
deleting the words “diluting or concentrative” and the words “(provided that no adjustments
will be made to account solely for changes in volatility, expected dividends, stock loan
rate or liquidity relative to the relevant Shares)” and replacing such latter phrase with
the words “(and, for the avoidance of doubt, adjustments may be made to account solely for
changes in volatility, expected dividends, stock loan rate or liquidity relative to the
relevant Shares)”;

(ii) Section 11.2(a) and 11.2(e)(vii) of the Equity Definitions is hereby amended by
deleting the words “diluting or concentrative” and replacing them with “material” and adding
the phrase “or Warrants” at the end of the sentence;

(iii) Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting
from the fourth line thereof the word “or” after the word “official” and inserting a comma
therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting
the following words therefor “or (C) at Dealer’s option, the occurrence of any of the events
specified in Section 5(a)(vii) (1) through (9) of the ISDA 2002 Master Agreement with
respect to that Issuer;”

(iv) Section 12.9(b)(iv) of the Equity Definitions is hereby amended by:

(x) deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)”
following subsection (A) and (3) the phrase “in each case” after subsection
(B); and

(y) deleting the phrase “neither the Non-Hedging Party nor the Lending Party
lends Shares in the amount of the Hedging Shares or” in the penultimate
sentence;

(v) Section 12.9(b)(v) of the Equity Definitions is hereby amended by:

(x) adding the word “or” immediately before subsection “(B)” and deleting the
comma at the end of subsection (A); and

(y) (1) prior to the period at the end of subsection (C), adding the phrase
“, subject to the Non-Hedging Party having entered into such documentation
containing representations, warranties and agreements relating to securities
law and other issues as requested by the Hedging Party that the Hedging Party
has determined, in its reasonable discretion, to be reasonably necessary or
appropriate to allow the Hedging Party to preserve its hedging or hedge
unwind activities in connection with the Transaction in a manner compliant
with applicable legal, regulatory or self-regulatory requirements, or with
related policies and procedures applicable to the Hedging Party and (2)
deleting clause (X) in the final sentence.

(i) Repurchase Notices. Issuer shall, on any day on which Issuer effects any repurchase of
Shares, promptly give Dealer a written notice of such repurchase (a “Repurchase Notice”) on such
day if, following such repurchase, the Notice Percentage as determined on such day is (A) greater
than 6.0% and (B) greater by 0.5% than the Notice Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice
Percentage as of the date hereof). The “Notice Percentage” as of any day is the fraction,
expressed as a percentage, the numerator of which is the Number of Shares and the denominator of
which is the number of Shares outstanding on such day. In the event that Issuer fails to provide
Dealer with a Repurchase Notice on the day and in the manner specified in this Section 8(i) then
Issuer agrees to indemnify and hold harmless Issuer, its affiliates and their respective directors,
officers, employees, agents and controlling persons (Dealer and each such person being an
“Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or
actions in respect thereof), joint or several, to which such Indemnified Party may become subject
under applicable securities laws, including without limitation, Section 16 of the Exchange Act,
relating to or arising out of such failure. If for any reason the foregoing indemnification is
unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then
Issuer shall contribute, to the maximum extent permitted by law, to the amount paid or payable by
the Indemnified Party as a result of such loss, claim, damage or liability. In addition, Issuer
will reimburse any Indemnified Party for all reasonable expenses (including reasonable counsel fees
and expenses) as they are incurred (after notice to Issuer) in connection with the investigation
of, preparation for or defense or settlement of any pending or threatened claim or any action, suit
or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and
whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of
Issuer. This indemnity shall survive the completion of the Transaction contemplated by this
Confirmation and any assignment and delegation of the Transaction made pursuant to this
Confirmation or the Agreement shall inure to the benefit of any permitted assignee of Dealer.

(j) Transfer and Assignment. Either party may transfer any of its rights or obligations under
the Transaction pursuant to Section 7 of the Agreement. In addition, Dealer may transfer or assign
its rights and obligations hereunder and under the Agreement, in whole or in part, at any time to
any person or entity with the prior consent of Issuer, which consent shall not be unreasonably
withheld or delayed. If (i) at any time an Excess Ownership Position exists, or a Hedging
Disruption has occurred and is continuing, and if Dealer, in its discretion, is unable (including,
without limitation, by virtue of the absence of an Issuer consent) to effect a transfer or
assignment to a third party after using its commercially reasonable efforts on pricing terms
reasonably acceptable to Dealer and within a time period reasonably acceptable to Dealer such that
an Excess Ownership Position or a Hedging Disruption, as the case may be, no longer exists or (ii)
in cases other than an Excess Ownership Position or Hedging Disruption, (A) Issuer does not
promptly (but in no event later than two Scheduled Trading Days following the date of the Dealer’s
initial request for consent to a proposed transfer or assignment (the “Initial Request Date”))
notify Dealer as to whether or not it is providing its consent to such proposed transfer or
assignment or (B) (1) Issuer does not promptly (but in no event later than two Scheduled Trading
Days following the Initial Request Date) provide its consent to a proposed transfer or assignment
by Dealer for any reason whatsoever, (2) Dealer has used good faith efforts to identify, on or
prior to the third Scheduled Trading Day following the Initial Request Date, an alternative
transferee or assignee on pricing and other terms reasonably acceptable to Dealer and (3) either
Dealer does not, after using good faith efforts, timely identify such an alternative transferee or
Issuer does not promptly (but in no event later than four Scheduled Trading Days following the
Initial Request Date) provide its consent to a proposed transfer or assignment by Dealer to any
identified alternative transferee or assignee for any reason whatsoever, then Dealer may designate
any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated
Portion”) of the Transaction, (x) such that such Excess Ownership Position or Hedging Disruption,
as the case may be, no longer exists or (y) that the Dealer proposed to transfer or assign. In the
event that Dealer so designates an Early Termination Date with respect to a portion of the
Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section
8(a) of this Confirmation as if (i) an Early Termination Date had been designated in respect of a
Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Issuer shall
be the sole Affected Party with respect to such partial termination, (iii) such portion of the
Transaction shall be the only Terminated Transaction and (iv) the reference to “two Local Business
Days” in Section 6(d)(ii) of the Agreement were replaced with “five Local Business Days”. “Excess
Ownership Position” means any of the following: (i) the Equity Percentage exceeds 8.0%, (ii) the
Warrant Equity Percentage exceeds 14.5% or (iii) Dealer or any “affiliate” or “associate” of Dealer
would own in excess of 13% of the outstanding Shares for purposes of Section 203 of the Delaware
General Corporation Law. The “Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the number of Shares that Dealer and any of its
affiliates or any other person subject to aggregation with Dealer, for purposes of the “beneficial
ownership” test under Section 13 of the Exchange Act, or of any “group” (within the meaning of
Section 13) of which Dealer is or may be deemed to be a part, beneficially owns (within the meaning
of Section 13 of the Exchange Act) on such day and (B) the denominator of which is the number of
Shares outstanding on such day. The “Warrant Equity Percentage” as of any day is the fraction,
expressed as a percentage, of (A) the product of (x) the Number of Warrants and (y) the Warrant
Entitlement divided by (B) the number of Shares outstanding on such day.

(k) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Issuer and each of its employees, representatives, or other agents may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Issuer relating to such tax treatment and tax structure.

(l) Designation by Dealer. Notwithstanding any other provision in this Confirmation to the
contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other
securities to or from Issuer, Dealer may designate any of its affiliates to purchase, sell, receive
or deliver such shares or other securities and otherwise to perform Dealer obligations in respect
of the Transaction and any such designee may assume such obligations. Dealer shall be discharged
of its obligations to Issuer to the extent of any such performance.

(m) Additional Termination Events. The occurrence of any of the following shall constitute an
Additional Termination Event with respect to which the Transaction shall be the sole Affected
Transaction and Issuer shall be the sole Affected Party; provided that with respect to any
Additional Termination Event, Dealer may choose to treat part of the Transaction as the sole
Affected Transaction, and, upon the termination of the Affected Transaction, a Transaction with
terms identical to those set forth herein except with a Number of Warrants equal to the unaffected
number of Warrants shall be treated for all purposes as the Transaction, which shall remain in full
force and effect:

(i) Dealer reasonably determines that it is advisable to terminate a portion of the
Transaction so that Dealer’s related hedging activities will comply with applicable
securities laws, rules or regulations;

(ii) any Person (as defined below) or “group” (within the meaning of Section 13(d) of
the Exchange Act), other than Issuer or its subsidiaries, files a Schedule TO or any
schedule, form or report under the Exchange Act disclosing that such person or group has
become the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the
Exchange Act, of more than 50% of the voting power of all shares of Issuer’s capital stock
entitled to vote generally in elections of directors;

(iii) consummation of any binding share exchange, consolidation or merger of Issuer
pursuant to which the Shares will be converted into cash, securities or other property or
any sale, lease or other transfer in one transaction or a series of transactions of all or
substantially all of the consolidated assets of Issuer and its subsidiaries, taken as a
whole, to any Person other than one of Issuer’s subsidiaries, other than any transaction
pursuant to which holders of the Issuer’s capital stock immediately prior to the transaction
have the entitlement to exercise, directly or indirectly, 50% or more of the total voting
power of all shares of capital stock entitled to vote generally in elections of directors of
the continuing or surviving or successor person immediately after giving effect to such
issuance;

(iv) continuing directors cease to constitute at least a majority of the Issuer’s board
of directors;

(v) Issuer’s stockholders approve any plan or proposal for liquidation or dissolution
of Issuer; or

(vi) the Shares cease to be listed on a U.S. national or regional securities exchange.

Notwithstanding the foregoing, a transaction or transactions set forth in clause (ii) or (iii)
above will not constitute an Additional Termination Event if at least 90% of the consideration paid
for the Shares (excluding cash payments for fractional shares) in such transaction or transactions
otherwise constituting an Additional Termination Event consists of shares of common stock traded on
any of the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or
the NASDAQ Global Market (or any of their respective successors) (or will be so traded or quoted
immediately following the completion of such transaction or transactions).

“Person” includes any syndicate or group that would be deemed to be a “person” under Section
13(d)(3) of the Exchange Act.

“Continuing Director” means a director who either was a member of Issuer’s board of directors
on the Trade Date or who becomes a member of the board of directors subsequent to that date and
whose election, appointment or nomination for election by Issuer’s stockholders is duly approved by
a majority of the continuing directors on Issuer’s board of directors at the time of such approval,
either by a specific vote or by approval of the proxy statement issued by Issuer on behalf of the
entire board of directors in which such individual is named as nominee for director.

(n) Netting and Set-off. Notwithstanding any provision of the Agreement (including without
limitation Section 6(f) thereof) and this Confirmation (including without limitation this Section
8(n)) or any other agreement between the parties to the contrary, (A) neither party shall net or
set off its obligations under the Transaction, if any, against its rights against the other party
under any other transaction or instrument, provided that either party may net and set off any
rights of Dealer against Issuer arising under the Transaction only against obligations of Dealer to
Issuer arising under any transaction or instrument if such transaction or instrument does not
convey rights to Dealer senior to the claims of common stockholders in the event of Issuer’s
bankruptcy and (B) in the event of the bankruptcy or liquidation of Issuer, neither party shall
have the right to set off any obligation that it may have to the other party under the Transaction
against any obligation such other party may have to it under the Agreement, this Confirmation or
any other agreement between the parties hereto, by operation of law or otherwise. The relevant
party will give notice to the other party of any netting or set off effected under this provision.

(o) Effectiveness. If, prior to the Effective Date, Dealer reasonably determines that it is
advisable to cancel the Transaction because of concerns that Dealer’s related hedging activities
could be viewed as not complying with applicable securities laws, rules or regulations, the
Transaction shall be cancelled and shall not become effective, and neither party shall have any
obligation to the other party in respect of the Transaction.

(p) Waiver of Trial by Jury. EACH OF ISSUER AND BUYER HEREBY IRREVOCABLY WAIVES (ON ITS OWN
BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF BUYER OR ITS AFFILIATES
IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

(q) Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

4

Issuer hereby agrees (a) to check this Confirmation carefully and immediately upon
receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm
that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the
agreement between Dealer and Issuer with respect to the Transaction, by manually signing this
Confirmation or this page hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy to us.

Yours faithfully,

BANK OF AMERICA, N.A.

	 	 	 	 	 	 	 
	
 
	 	 	 	By:
	 	/s/ Christopher Hutmaker

Name: Christopher Hutmaker

Title: Managing Director
	Agreed and Accepted By:

	 	

	 	

	 	

	ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
	 	 	 	 
	By:

	 	/s/ David Wilson
	 	

	 	

	 	 	Name: David Wilson

Title: Senior Vice President and

Chief Financial Officer

5

ANNEX A

For each Component of the Transaction, the Number of Warrants and Expiration Date is set forth
below.

	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	121.

	 	 	20,183	 	 	May 30, 2013
	122.

	 	 	20,183	 	 	May 31, 2013
	123.

	 	 	20,183	 	 	June 3, 2013
	124.

	 	 	20,183	 	 	June 4, 2013
	125.

	 	 	20,183	 	 	June 5, 2013
	126.

	 	 	20,183	 	 	June 6, 2013
	127.

	 	 	20,183	 	 	June 7, 2013
	128.

	 	 	20,183	 	 	June 10, 2013
	129.

	 	 	20,183	 	 	June 11, 2013
	130.

	 	 	20,183	 	 	June 12, 2013
	131.

	 	 	20,183	 	 	June 13, 2013
	132.

	 	 	20,183	 	 	June 14, 2013
	133.

	 	 	20,183	 	 	June 17, 2013
	134.

	 	 	20,183	 	 	June 18, 2013
	135.

	 	 	20,183	 	 	June 19, 2013
	136.

	 	 	20,183	 	 	June 20, 2013
	137.

	 	 	20,183	 	 	June 21, 2013
	138.

	 	 	20,183	 	 	June 24, 2013
	139.

	 	 	20,183	 	 	June 25, 2013
	140.

	 	 	20,183	 	 	June 26, 2013
	141.

	 	 	20,183	 	 	June 27, 2013
	142.

	 	 	20,183	 	 	June 28, 2013
	143.

	 	 	20,183	 	 	July 1, 2013
	144.

	 	 	20,183	 	 	July 2, 2013
	145.

	 	 	20,183	 	 	July 3, 2013
	146.

	 	 	20,183	 	 	July 5, 2013
	147.

	 	 	20,183	 	 	July 8, 2013
	148.

	 	 	20,183	 	 	July 9, 2013
	149.

	 	 	20,183	 	 	July 10, 2013
	150.

	 	 	20,183	 	 	July 11, 2013
	151.

	 	 	20,183	 	 	July 12, 2013
	152.

	 	 	20,183	 	 	July 15, 2013
	153.

	 	 	20,183	 	 	July 16, 2013
	154.

	 	 	20,183	 	 	July 17, 2013
	155.

	 	 	20,183	 	 	July 18, 2013
	156.

	 	 	20,183	 	 	July 19, 2013
	157.

	 	 	20,183	 	 	July 22, 2013
	158.

	 	 	20,183	 	 	July 23, 2013
	159.

	 	 	20,183	 	 	July 24, 2013
	160.

	 	 	20,183	 	 	July 25, 2013
	161.

	 	 	20,183	 	 	July 26, 2013
	162.

	 	 	20,183	 	 	July 29, 2013
	163.

	 	 	20,183	 	 	July 30, 2013
	164.

	 	 	20,183	 	 	July 31, 2013
	165.

	 	 	20,183	 	 	August 1, 2013
	166.

	 	 	20,183	 	 	August 2, 2013
	167.

	 	 	20,183	 	 	August 5, 2013
	168.

	 	 	20,183	 	 	August 6, 2013
	169.

	 	 	20,183	 	 	August 7, 2013
	170.

	 	 	20,183	 	 	August 8, 2013
	171.

	 	 	20,183	 	 	August 9, 2013
	172.

	 	 	20,183	 	 	August 12, 2013
	173.

	 	 	20,183	 	 	August 13, 2013
	174.

	 	 	20,183	 	 	August 14, 2013
	175.

	 	 	20,183	 	 	August 15, 2013
	176.

	 	 	20,183	 	 	August 16, 2013
	177.

	 	 	20,183	 	 	August 19, 2013
	178.

	 	 	20,183	 	 	August 20, 2013
	179.

	 	 	20,183	 	 	August 21, 2013
	180.

	 	 	20,183	 	 	August 22, 2013
	181.

	 	 	20,183	 	 	August 23, 2013
	182.

	 	 	20,183	 	 	August 26, 2013
	183.

	 	 	20,183	 	 	August 27, 2013
	184.

	 	 	20,183	 	 	August 28, 2013
	185.

	 	 	20,183	 	 	August 29, 2013
	186.

	 	 	20,183	 	 	August 30, 2013
	187.

	 	 	20,183	 	 	September 3, 2013
	188.

	 	 	20,183	 	 	September 4, 2013
	189.

	 	 	20,183	 	 	September 5, 2013
	190.

	 	 	20,183	 	 	September 6, 2013
	191.

	 	 	20,183	 	 	September 9, 2013
	192.

	 	 	20,183	 	 	September 10, 2013
	193.

	 	 	20,183	 	 	September 11, 2013
	194.

	 	 	20,183	 	 	September 12, 2013
	195.

	 	 	20,183	 	 	September 13, 2013
	196.

	 	 	20,183	 	 	September 16, 2013
	197.

	 	 	20,183	 	 	September 17, 2013
	198.

	 	 	20,183	 	 	September 18, 2013
	199.

	 	 	20,183	 	 	September 19, 2013
	200.

	 	 	20,183	 	 	September 20, 2013
	201.

	 	 	20,183	 	 	September 23, 2013
	202.

	 	 	20,183	 	 	September 24, 2013
	203.

	 	 	20,183	 	 	September 25, 2013
	204.

	 	 	20,183	 	 	September 26, 2013
	205.

	 	 	20,183	 	 	September 27, 2013
	206.

	 	 	20,183	 	 	September 30, 2013
	207.

	 	 	20,183	 	 	October 1, 2013
	208.

	 	 	20,183	 	 	October 2, 2013
	209.

	 	 	20,183	 	 	October 3, 2013
	210.

	 	 	20,183	 	 	October 4, 2013
	211.

	 	 	20,183	 	 	October 7, 2013
	212.

	 	 	20,183	 	 	October 8, 2013
	213.

	 	 	20,183	 	 	October 9, 2013
	214.

	 	 	20,183	 	 	October 10, 2013
	215.

	 	 	20,183	 	 	October 11, 2013
	216.

	 	 	20,183	 	 	October 14, 2013
	217.

	 	 	20,183	 	 	October 15, 2013
	218.

	 	 	20,183	 	 	October 16, 2013
	219.

	 	 	20,183	 	 	October 17, 2013
	220.

	 	 	20,183	 	 	October 18, 2013
	221.

	 	 	20,183	 	 	October 21, 2013
	222.

	 	 	20,183	 	 	October 22, 2013
	223.

	 	 	20,183	 	 	October 23, 2013
	224.

	 	 	20,183	 	 	October 24, 2013
	225.

	 	 	20,183	 	 	October 25, 2013
	226.

	 	 	20,183	 	 	October 28, 2013
	227.

	 	 	20,183	 	 	October 29, 2013
	228.

	 	 	20,183	 	 	October 30, 2013
	229.

	 	 	20,183	 	 	October 31, 2013
	230.

	 	 	20,183	 	 	November 1, 2013
	231.

	 	 	20,183	 	 	November 4, 2013
	232.

	 	 	20,183	 	 	November 5, 2013
	233.

	 	 	20,183	 	 	November 6, 2013
	234.

	 	 	20,183	 	 	November 7, 2013
	235.

	 	 	20,183	 	 	November 8, 2013
	236.

	 	 	20,183	 	 	November 11, 2013
	237.

	 	 	20,183	 	 	November 12, 2013
	238.

	 	 	20,183	 	 	November 13, 2013
	239.

	 	 	20,183	 	 	November 14, 2013
	240.

	 	 	20,142	 	 	November 15, 2013

6

ANNEX B

	 	 	The Strike Price, Premium and Final Disruption Date for the Transaction are set forth below.

	 	 	 
	Strike Price:

	 	USD16.422
	Premium:

	 	USD2,463,125.25
	Final Disruption Date:November 27, 2013.

	To:

From:

60 Victoria Embankment

London EC4Y OJP

England

	 	April 4, 2008

Alaska Communications Systems Group, Inc.

600 Telephone Ave.

Anchorage, Alaska 99503

Attn:David Wilson

Telephone:907-297-3000

Facsimile:907-297-3052

JPMorgan Chase Bank, National Association

P.O. Box 161

Telephone:212-622-6707

Facsimile:212-622-8534
	Re:

	 	Issuer Warrant Transaction

(Transaction Reference Number: 2916100)

Ladies and Gentlemen:

The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below, as
amended on April 4, 2008 (the “Transaction”), between JPMorgan Chase Bank, National Association
(“Dealer”) and Alaska Communications Systems Group, Inc. (“Issuer”). This communication
constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.

9. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2006 ISDA Definitions (the “2006 Definitions”) and the definitions and provisions of the 2002 ISDA
Equity Derivatives Definitions (the “Equity Definitions”, and together with the 2006 Definitions,
the “Definitions”), in each case as published by the International Swaps and Derivatives
Association, Inc. (“ISDA”). In the event of any inconsistency between the 2006 Definitions and the
Equity Definitions, the Equity Definitions will govern. For purposes of the Equity Definitions,
each reference herein to a Warrant shall be deemed to be a reference to a Call Option or an Option,
as context requires.

This Confirmation evidences a complete and binding agreement between Dealer and Issuer as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to, an agreement in the form of the ISDA 2002 Master
Agreement (the “Agreement”), as if Dealer and Issuer had executed an agreement in such form
(without any Schedule but with the elections set forth in this Confirmation) on the Trade Date.
For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement.

All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

10. The Transaction is a Warrant Transaction, which shall be considered a Share Option
Transaction for purposes of the Equity Definitions. The terms of the particular Transaction to
which this Confirmation relates are as follows:

	 	 	 
	General Terms:

	 	

	Trade Date:

	 	April 2, 2008.

	 	 	 	Effective Date: April 8, 2008, or such other date as agreed between the parties, subject to
Section 8(o) below.

	 	 	 	Components: The Transaction will be divided into individual Components, each with the terms
set forth in this Confirmation, and, in particular, with the Number of Warrants and
Expiration Date set forth in this Confirmation. The payments and deliveries to be made
upon settlement of the Transaction will be determined separately for each Component as
if each Component were a separate Transaction under the Agreement.

	 	 	 
	Warrant Style:

Warrant Type:

Seller:

Buyer:

	 	European.

Call.

Issuer.

Dealer.

	 	 	 	Shares: The Common Stock of Issuer, par value USD0.01 per share (Ticker Symbol: “ALSK”).

	 	 	 	Number of Warrants: For each Component, as provided in Annex A to this Confirmation.

	 	 	 
	Warrant Entitlement:

Strike Price:

	 	One Share per Warrant.

As provided in Annex B to this Confirmation.
	
 
	 	 
	Premium:

	 	As provided in Annex B to this Confirmation.
	
 
	 	 
	Premium Payment Date:

	 	The Effective Date.

	 	 	 	Exchange: The NASDAQ Global Select Market of the Nasdaq Stock Market, Inc.

	 	 	 
	Related Exchange:

	 	All Exchanges.
	Procedures for Exercise:

	 	

	In respect of any Component:

	 	

	Expiration Time:

	 	Valuation Time.

	 	 	 	Expiration Date: As provided in Annex A to this Confirmation (or, if such date is
not a Scheduled Trading Day, the next following Scheduled Trading Day that is not
already an Expiration Date for another Component); provided that if that date is a
Disrupted Day, the Expiration Date for such Component shall be the first succeeding
Scheduled Trading Day that is not a Disrupted Day and is not or is not deemed to be an
Expiration Date in respect of any other Component of the Transaction hereunder; and
provided further that if the Expiration Date has not occurred pursuant to the preceding
proviso as of the Final Disruption Date, the Final Disruption Date shall be the
Expiration Date (irrespective of whether such date is an Expiration Date occurring on
the Final Disruption Date in respect of any other Component for the Transaction) and,
notwithstanding anything to the contrary in this Confirmation or the Equity
Definitions, the Relevant Price for the Expiration Date shall be the prevailing market
value per Share determined by the Calculation Agent in a commercially reasonable
manner. Notwithstanding the foregoing and anything to the contrary in the Equity
Definitions, if a Market Disruption Event occurs on any Expiration Date, the
Calculation Agent may determine that such Expiration Date is a Disrupted Day only in
part, in which case the Calculation Agent shall make adjustments to the number of
Warrants for the relevant Component for which such day shall be the Expiration Date and
shall designate the Scheduled Trading Day determined in the manner described in the
immediately preceding sentence as the Expiration Date for the remaining Warrants for
such Component. Section 6.6 of the Equity Definitions shall not apply to any Valuation
Date occurring on an Expiration Date. “Final Disruption Date” has the meaning provided
in Annex B to this Confirmation.

	 	 	 	Market Disruption Event: Section 6.3(a) of the Equity Definitions is hereby amended by
deleting the words “during the one hour period that ends at the relevant Valuation
Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the
case may be,” in clause (ii) thereof.

Section 6.3(d) of the Equity Definitions is hereby
amended by deleting the remainder of the provision
following the term “Scheduled Closing Time” in the
fourth line thereof.

	 	 	 	Automatic Exercise: Applicable; and means that the Number of Warrants for each Component
will be deemed to be automatically exercised at the Expiration Time on the Expiration
Date for such Component unless Dealer notifies Seller (by telephone or in writing)
prior to the Expiration Time on the Expiration Date that it does not wish Automatic
Exercise to occur, in which case Automatic Exercise will not apply.

	 	 	 
	Issuer’s Telephone Number

and Telex and/or Facsimile Number

and Contact Details for purpose of

Giving Notice:

	 	

To be provided by Issuer.
	Settlement Terms:

	 	

	In respect of any Component:

	 	

	Settlement Currency:

	 	USD.

	 	 	 	Net Share Settlement: On each Settlement Date, Issuer shall deliver to Dealer a
number of Shares equal to the Number of Shares to be Delivered for such Settlement Date
to the account specified by Dealer and cash in lieu of any fractional shares valued at
the Relevant Price on the Valuation Date corresponding to such Settlement Date.

	 	 	 	Number of Shares to be Delivered: In respect of any Exercise Date, subject to the last
sentence of Section 9.5 of the Equity Definitions, the product of (i) the number of
Warrants exercised or deemed exercised on such Exercise Date, (ii) the Warrant
Entitlement and (iii) (A) the excess, if any, of the Relevant Price on the Valuation
Date occurring on such Exercise Date over the Strike Price divided by (B) such Relevant
Price.

The Number of Shares to be Delivered shall be delivered
by Issuer to Dealer no later than 12:00 noon (local
time in New York City) on the relevant Settlement Date.

	 	 	 	Relevant Price: For any Valuation Date, the Rule 10b-18 dollar volume weighted average price
per Share for such Valuation Date based on transactions executed during such Valuation
Date, as reported on Bloomberg Page “ALSK.UQ <Equity> AQR SEC” (or any successor
thereto) or, in the event such price is not so reported on such Valuation Date for any
reason, as reasonably determined by the Calculation Agent.

	 	 	 	Other Applicable Provisions: The provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11
(except that the Representation and Agreement contained in Section 9.11 of the Equity
Definitions shall be modified by excluding any representations therein relating to
restrictions, obligations, limitations or requirements under applicable securities laws
as a result of the fact that Seller is the Issuer of the Shares) and 9.12 of the Equity
Definitions will be applicable as if “Physical Settlement” applied to the Transaction.

	 	 	 
	Adjustments:

	 	

	In respect of any Component:

	 	

	Method of Adjustment:

	 	Calculation Agent Adjustment.

	 	 	 	Extraordinary Dividend: Any dividend or distribution (i) that has an ex-dividend date
occurring after the Trade Date and on or prior to the Expiration Date and (ii) the
amount or value of which differs from the Ordinary Dividend Amount for such dividend or
distribution, as determined by the Calculation Agent.

	 	 	 	Ordinary Dividend Amount: USD 0.215 per quarter.

	 	 	Extraordinary Events:

	 	 	 	New Shares: In the definition of New Shares in Section 12.1(i) of the Equity
Definitions, (a) the text in clause (i) thereof shall be deleted in its entirety
(including the word “and” following clause (i)) and replaced with “publicly quoted,
traded or listed on any of the New York Stock Exchange, the American Stock Exchange,
the NASDAQ Global Select Market or the NASDAQ Global Market (or their respective
successors),” and (b) the phrase “and (iii) of an entity or person organized under the
laws of the United States, any State thereof or the District of Columbia” shall be
inserted immediately prior to the period.

	 	 	 	 	 
	Consequences of Merger Events:
	 	 
	(a)

(b)

(c)

Tender Offer:

	 	Share-for-Share:

Share-for-Other:

Share-for-Combined:
	 	Modified Calculation Agent Adjustment.

Cancellation and Payment (Calculation Agent Determination).

Cancellation and Payment (Calculation Agent Determination).

Applicable.
	Consequences of Tender Offers:
	 	 
	(a)

	 	Share-for-Share:
	 	Modified Calculation Agent Adjustment.

	 	(b)	 	Share-for-Other: Cancellation and Payment (Calculation Agent
Determination) on that portion of the Other Consideration that consists of cash;
Modified Calculation Agent Adjustment on the remainder of the Other Consideration.

	 	(c)	 	Share-for-Combined: Modified Calculation Agent Adjustment.

	 	 	 	Modified Calculation

	 	 	 	Agent Adjustment: If, in respect of any Merger Event or Tender Offer to which
Modified Calculation Agent Adjustment applies, the adjustments to be made in accordance
with Section 12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity
Definitions would result in Issuer being different from the issuer of the Shares, then
with respect to such Merger Event or Tender Offer, as a condition precedent to the
adjustments contemplated in Section 12.2(e)(i) or Section 12.3(d)(i), as the case may
be, of the Equity Definitions, Issuer and the issuer of the Shares shall, prior to the
Merger Date or Tender Offer, as the case may be, have entered into such documentation
containing representations, warranties and agreements relating to securities law and
other issues as requested by Dealer that Dealer has determined, in its reasonable
discretion, to be reasonably necessary or appropriate to allow Dealer to continue as a
party to the Transaction, as adjusted under Section 12.2(e)(i) or Section 12.3(d)(i),
as the case may be, of the Equity Definitions, and to preserve its hedging or hedge
unwind activities in connection with the Transaction in a manner compliant with
applicable legal, regulatory or self-regulatory requirements, or with related policies
and procedures applicable to Dealer, and if such conditions are not met or if the
Calculation Agent determines that no adjustment that it could make under Section
12.2(e)(i) or Section 12.3(d)(i), as the case may be, of the Equity Definitions will
produce a commercially reasonable result, then the consequences set forth in Section
12.2(e)(ii) or Section 12.3(d)(ii), as the case may be, of the Equity Definitions shall
apply.

	 	 	 	Nationalization, Insolvency

	 	•	 	r Delisting: Cancellation and Payment (Calculation Agent Determination); provided
that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions,
it shall also constitute a Delisting if the Exchange is located in the United States
and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New
York Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or
the NASDAQ Global Market (or their respective successors); if the Shares are
immediately re-listed, re-traded or re-quoted on any such exchange or quotation system,
such exchange or quotation system shall thereafter be deemed to be the Exchange.

	 	 	 	 	 
	Additional Disruption Events:
	 	 
	Acknowledgments:

	 	(a)Change in Law:

(b)Failure to Deliver:

(c)Insolvency Filing:

(d)Hedging Disruption:

(e) Increased Cost of Hedging:

(f) Loss of Stock Borrow:

Maximum Stock Loan Rate:

(g) Increased Cost of Stock Borrow:

Initial Stock Loan Rate:

Hedging Party:

Determining Party:

	 	Applicable.

Not Applicable.

Applicable.

Applicable.

Applicable.

Applicable.

100 basis points per annum.

Applicable.

50 basis points per annum.

Dealer for all applicable Additional Disruption Events.

Dealer for all applicable Additional Disruption Events.

	Non-Reliance:

	 	 	 	Applicable.
	Agreements and Acknowledgments
	 	 
	Regarding Hedging Activities:
	 	Applicable.
	Additional Acknowledgments:
	 	Applicable.
	11.

	 	Calculation Agent:
	 	Dealer.
	
 
	 	 
	 	

12. Account Details:

	 	 	 
	Dealer Payment Instructions:

	 	JPMorgan Chase Bank, National Association, New York

ABA: 021 000 021

Favour: JPMorgan Chase Bank, National Association – London

A/C: 0010962009 CHASUS33

Account for delivery of Shares to JPMorgan:
	Issuer Payment Instructions:

	 	DTC 060

First National Bank Alaska

ABA: 125 200 060

Account Name: Alaska Communications Systems

Account No.: 1512 540 4

5. Offices:

The Office of Dealer for the Transaction is:

JPMorgan Chase Bank, National Association

London Branch

P.O. Box 161

60 Victoria Embankment

London EC4Y 0JP

England

The Office of Issuer for the Transaction is: Not applicable.

6. Notices: For purposes of this Confirmation:

(a) Address for notices or communications to Issuer:

	 	 	 	 	 
	To:
	 	Alaska Communications Systems Group, Inc.
	 
	 	600 Telephone Ave.
	 
	 	Anchorage, Alaska 99503
	Attn:
	 	David Wilson
	Telephone:
	 	 	907-297-3000	 
	Facsimile:
	 	 	907-297-3052	 

(b) Address for notices or communications to Dealer:

	 	 	 	 	 
	To:
	 	JPMorgan Chase Bank, National Association
	 
	 	277 Park Avenue, 11th Floor
	 
	 	New York, NY 10172
	Attention:
	 	Mariusz Kwasnik
	 
	 	Title: Operations Analyst
	 
	 	EDG Corporate Marketing
	Telephone:
	 	 	212-622-6707	 
	Facsimile:
	 	 	212-622-8534	 

7. Representations, Warranties and Agreements:

(a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Issuer represents and warrants to and for the benefit of, and agrees with, Dealer
as follows:

(i) On the Trade Date, and as of the date of any election by Issuer of the Share
Termination Alternative under (and as defined in) Section 8(a) below, none of Issuer and its
officers and directors is aware of any material nonpublic information regarding Issuer or
the Shares. On the Trade Date, each of Issuer’s filings under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), that are required to be filed from and including
the ending date of Issuer’s most recent prior fiscal year have been filed.

(ii) Without limiting the generality of Section 13.1 of the Equity Definitions, Issuer
acknowledges that Dealer is not making any representations or warranties with respect to the
treatment of the Transaction under FASB Statements 128, 133, 149 (each as amended), or 150,
EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue statements), under FASB’s
Liabilities & Equity Project or under any other accounting guidance.

(iii) Prior to the Trade Date, Issuer shall deliver to Dealer a resolution of Issuer’s
board of directors authorizing the Transaction and such other certificate or certificates as
Dealer shall reasonably request.

(iv) Issuer is not entering into this Confirmation to create actual or apparent trading
activity in the Shares (or any security convertible into or exchangeable for Shares) or to
raise or depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares) or otherwise in violation of the Exchange Act.

(v) Issuer is not, and after giving effect to the transactions contemplated hereby will
not be, an “investment company” as such term is defined in the Investment Company Act of
1940, as amended.

(vi) On the Trade Date (A) the assets of Issuer at their fair valuation exceed the
liabilities of Issuer, including contingent liabilities, (B) the capital of Issuer is
adequate to conduct the business of Issuer and (C) Issuer has the ability to pay its debts
and obligations as such debts mature and does not intend to, or does not believe that it
will, incur debt beyond its ability to pay as such debts mature.

(vii) Issuer shall not take any action to decrease the number of Available Shares below
the Capped Number (each as defined below).

(viii) Issuer understands no obligations of Dealer to it hereunder will be entitled to
the benefit of deposit insurance and that such obligations will not be guaranteed by any
Affiliate of Dealer or any governmental agency.

(ix) (A) During the period starting on the first Expiration Date and ending on the last
Expiration Date (the “Settlement Period”), the Shares or securities that are convertible
into, or exchangeable or exercisable for Shares, are not, and shall not be, subject to a
“restricted period,” as such term is defined in Regulation M under the Exchange Act
(“Regulation M”) and (B) Issuer shall not engage in any “distribution,” as such term is
defined in Regulation M, other than a distribution meeting the requirements of the
exceptions set forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second
Exchange Business Day immediately following the Settlement Period.

(x) During the Settlement Period, neither Issuer nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any cash-settled or other
derivative instrument) purchase, offer to purchase, place any bid or limit order that would
effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent
interest, including a unit of beneficial interest in a trust or limited partnership or a
depository share) or any security convertible into or exchangeable or exercisable for
Shares, except through Dealer.

(xi) The Shares of Issuer initially issuable upon exercise of the Warrant (the “Warrant
Shares”) have been reserved for issuance by all required corporate action of Issuer. The
Warrant Shares have been duly authorized and, when delivered against payment therefor (which
may include Net Share Settlement in lieu of cash) and otherwise as contemplated by the terms
of the Warrant following the exercise of the Warrant in accordance with the terms and
conditions of the Warrant, will be validly issued, fully-paid and non-assessable, and the
issuance of the Warrant Shares will not be subject to any preemptive or similar rights.

(b) Each of Dealer and Issuer agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

(c) Each of Dealer and Issuer acknowledges that the offer and sale of the Transaction to it is
intended to be exempt from registration under the Securities Act of 1933, as amended (the
“Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Dealer represents and warrants
to Issuer that (i) it has the financial ability to bear the economic risk of its investment in the
Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor”
as that term is defined in Regulation D as promulgated under the Securities Act, (iii) it is
entering into the Transaction for its own account without a view to the distribution or resale
thereof and (iv) the assignment, transfer or other disposition of the Transaction has not been and
will not be registered under the Securities Act and is restricted under this Confirmation, the
Securities Act and state securities laws.

(d) Each of Dealer and Issuer agrees and acknowledges that Dealer is a “financial
institution,” “swap participant” and “financial participant” within the meaning of Sections
101(22), 101(53C) and 101(22A) of Title 11 of the United States Code (the “Bankruptcy Code”). The
parties hereto further agree and acknowledge (A) that this Confirmation is (i) a “securities
contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which
each payment and delivery hereunder or in connection herewith is a “termination value,” “payment
amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and
a “settlement payment” within the meaning of Section 546 of the Bankruptcy Code, and (ii) a “swap
agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to
which each payment and delivery hereunder or in connection herewith is a “termination value,” a
“payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy
Code and a “transfer” within the meaning of Section 546 of the Bankruptcy Code, and (B) that Dealer
is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17),
362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

(e) Issuer shall deliver to Dealer an opinion of counsel, dated as of the Effective Date and
reasonably acceptable to Dealer in form and substance, with respect to the matters set forth in
Section 3(a) of the Agreement.

8. Other Provisions:

(a) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If, subject to Section 8(m) below, Issuer shall owe Dealer any amount pursuant to Sections
12.2, 12.3, 12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of an Insolvency, a
Nationalization, a Tender Offer or a Merger Event, in each case, in which the consideration or
proceeds to be paid to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii)
of the Agreement (except in the event of an Event of Default in which Issuer is the Defaulting
Party or a Termination Event in which Issuer is the Affected Party, that resulted from an event or
events within Issuer’s control) (a “Payment Obligation”), Issuer shall have the right, in its sole
discretion, to satisfy any such Payment Obligation by the Share Termination Alternative (as defined
below) by giving irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled
Trading Day, between the hours of 9:00 A.M. and 4:00 P.M. New York City time on the Merger Date,
Tender Offer Date, Announcement Date, Early Termination Date or other date the Transaction is
cancelled or terminated, as applicable (“Notice of Share Termination”), provided that if Issuer
does not elect to satisfy its Payment Obligation by the Share Termination Alternative, Dealer shall
have the right, in its sole discretion, to require Issuer to satisfy its Payment Obligation by the
Share Termination Alternative, notwithstanding Issuer’s failure to elect or election to the
contrary. Upon such Notice of Share Termination, the following provisions shall apply on the
Scheduled Trading Day immediately following the Merger Date, the Tender Offer Date, Announcement
Date, Early Termination Date or other date the Transaction is cancelled or terminated, as
applicable:

	 	 	 
	Share Termination Alternative:

Share Termination Delivery

Property:

Share Termination Unit Price:

Share Termination Delivery Unit:

Failure to Deliver:

Other applicable provisions:

	 	Applicable and means that Issuer shall

deliver to Dealer the Share Termination

Delivery Property on the date on which the

Payment Obligation would otherwise be due

pursuant to Section 12.7 or 12.9 of the

Equity Definitions or Section 6(d)(ii) of

the Agreement, as applicable (the “Share

Termination Payment Date”), in satisfaction

of the Payment Obligation.

A number of Share Termination Delivery

Units, as calculated by the Calculation

Agent, equal to the Payment Obligation

divided by the Share Termination Unit Price.

The Calculation Agent shall adjust the

Share Termination Delivery Property by

replacing any fractional portion of a

security therein with an amount of cash

equal to the value of such fractional

security based on the values used to

calculate the Share Termination Unit Price.

The value of property contained in one Share

Termination Delivery Unit on the date such

Share Termination Delivery Units are to be

delivered as Share Termination Delivery

Property, as determined by the Calculation

Agent in its discretion by commercially

reasonable means and notified by the

Calculation Agent to Issuer at the time of

notification of the Payment Obligation.

In the case of a Termination Event, Event of

Default, Delisting or Additional Disruption

Event, one Share or, in the case of an

Insolvency, Nationalization, Merger Event or

Tender Offer, a unit consisting of the

number or amount of each type of property

received by a holder of one Share (without

consideration of any requirement to pay cash

or other consideration in lieu of fractional

amounts of any securities) in such

Insolvency, Nationalization, Merger Event or

Tender Offer. If such Insolvency,

Nationalization, Merger Event or Tender

Offer involves a choice of consideration to

be received by holders, such holder shall be

deemed to have elected to receive the

maximum possible amount of cash.

Applicable.

If Share Termination Alternative is

applicable, the provisions of Sections 9.8,

9.9, 9.10, 9.11 (except that the

Representation and Agreement contained in

Section 9.11 of the Equity Definitions shall

be modified by excluding any representations

therein relating to restrictions,

obligations, limitations or requirements

under applicable securities laws as a result

of the fact that Seller is the Issuer of the

Shares) and 9.12 of the Equity Definitions

will be applicable as if “Physical

Settlement” applied to the Transaction,

except that all references to “Shares” shall

be read as references to “Share Termination

Delivery Units”.

(b) Registration/Private Placement Procedures. (i) If, in the reasonable judgment of Dealer,
for any reason, any Shares or any securities of Issuer or its affiliates comprising any Share
Termination Delivery Units deliverable to Dealer hereunder (any such Shares or securities,
“Delivered Securities”) would not be immediately freely transferable by Dealer under Rule 144 under
the Securities Act, then the provisions set forth in this Section 8(b) shall apply. At the
election of Issuer by notice to Dealer within one Scheduled Trading Day after the relevant delivery
obligation arises, but in any event at least one Scheduled Trading Day prior to the date on which
such delivery obligation is due, either (A) all Delivered Securities delivered by Issuer to Dealer
shall be, at the time of such delivery, covered by an effective registration statement of Issuer
for immediate resale by Dealer (such registration statement and the corresponding prospectus (the
“Prospectus”) (including, without limitation, any sections describing the plan of distribution) in
form and content commercially reasonably satisfactory to Dealer) or (B) Issuer shall deliver
additional Delivered Securities so that the value of such Delivered Securities, as determined by
the Calculation Agent to reflect an appropriate liquidity discount, equals the value of the number
of Delivered Securities that would otherwise be deliverable if such Delivered Securities were
freely tradeable (without prospectus delivery) upon receipt by Dealer (such value, the “Freely
Tradeable Value”); provided that Issuer may not make the election described in this clause (B) if,
on the date of its election, it has taken, or caused to be taken, any action that would make
unavailable either the exemption pursuant to Section 4(2) of the Securities Act for the delivery by
Issuer to Dealer (or any affiliate designated by Dealer) of the Delivered Securities or the
exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for resales of the
Delivered Securities by Dealer (or any such affiliate of Dealer). (For the avoidance of doubt, as
used in this paragraph (b) only, the term “Issuer” shall mean the issuer of the relevant
securities, as the context shall require.)

(ii) If Issuer makes the election described in clause (b)(i)(A) above:

(A) Dealer (or an Affiliate of Dealer designated by Dealer) shall be afforded a
reasonable opportunity to conduct a due diligence investigation with respect to Issuer that
is customary in scope for underwritten offerings of equity securities and that yields
results that are commercially reasonably satisfactory to Dealer or such Affiliate, as the
case may be, in its discretion; and

(B) Dealer (or an Affiliate of Dealer designated by Dealer) and Issuer shall enter into
an agreement (a “Registration Agreement”) on commercially reasonable terms in connection
with the public resale of such Delivered Securities by Dealer or such Affiliate
substantially similar to underwriting agreements customary for underwritten offerings of
equity securities, in form and substance commercially reasonably satisfactory to Dealer or
such Affiliate and Issuer, which Registration Agreement shall include, without limitation,
provisions substantially similar to those contained in such underwriting agreements relating
to the indemnification of, and contribution in connection with the liability of, Dealer and
its Affiliates and Issuer, shall provide for the payment by Issuer of reasonable expenses in
connection with such resale, including all registration costs and reasonable fees and
expenses of counsel for Dealer, and shall provide for the delivery of accountants’ “comfort
letters” to Dealer or such Affiliate with respect to the financial statements and certain
financial information contained in or incorporated by reference into the Prospectus.

(iii) If Issuer makes the election described in clause (b)(i)(B) above:

(A) Dealer (or an Affiliate of Dealer designated by Dealer) and any potential
institutional purchaser of any such Delivered Securities from Dealer or such Affiliate
identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a
due diligence investigation in compliance with applicable law with respect to Issuer
customary in scope for private placements of equity securities (including, without
limitation, the right to have made available to them for inspection all financial and other
records, pertinent corporate documents and other information reasonably requested by them);

(B) Dealer (or an Affiliate of Dealer designated by Dealer) and Issuer shall enter into
an agreement (a “Private Placement Agreement”) on commercially reasonable terms in
connection with the private placement of such Delivered Securities by Issuer to Dealer or
such Affiliate and the private resale of such shares by Dealer or such Affiliate,
substantially similar to private placement purchase agreements customary for private
placements of equity securities, in form and substance commercially reasonably satisfactory
to Dealer and Issuer, which Private Placement Agreement shall include, without limitation,
provisions substantially similar to those contained in such private placement purchase
agreements relating to the indemnification of, and contribution in connection with the
liability of, Dealer and its Affiliates and Issuer, shall provide for the payment by Issuer
of reasonable expenses in connection with such resale, including reasonable fees and
expenses of counsel for Dealer, shall contain representations, warranties and agreements of
Issuer reasonably necessary or advisable to establish and maintain the availability of an
exemption from the registration requirements of the Securities Act for such resales, and
shall use best efforts to provide for the delivery of accountants’ “comfort letters” to
Dealer or such Affiliate with respect to the financial statements and certain financial
information contained in or incorporated by reference into the offering memorandum prepared
for the resale of such Shares;

(C) Issuer agrees that any Delivered Securities so delivered to Dealer, (i) may be
transferred by and among Dealer and its Affiliates, and Issuer shall effect such transfer
without any further action by Dealer and (ii) after the minimum “holding period” within the
meaning of Rule 144(d) under the Securities Act has elapsed with respect to such Delivered
Securities, Issuer shall promptly remove, or cause the transfer agent for such Shares or
securities to remove, any legends referring to any such restrictions or requirements from
such Delivered Securities upon delivery by Dealer (or such Affiliate of Dealer) to Issuer or
such transfer agent of any seller’s and broker’s representation letters customarily
delivered by Dealer in connection with resales of restricted securities pursuant to Rule 144
under the Securities Act, without any further requirement for the delivery of any
certificate, consent, agreement, opinion of counsel, notice or any other document, any
transfer tax stamps or payment of any other amount or any other action by Dealer (or such
affiliate of Dealer); and

(D) Issuer shall not take, or cause to be taken, any action that would make unavailable
either the exemption pursuant to Section 4(2) of the Securities Act for the sale by Issuer
to Dealer (or any affiliate designated by Dealer) of the Shares or Share Termination
Delivery Units, as the case may be, or the exemption pursuant to Section 4(1) or Section
4(3) of the Securities Act for resales of the Shares or Share Termination Delivery Units, as
the case may be, by Dealer (or any such affiliate of Dealer).

(c) Make-whole. If Issuer makes the election described in clause (b)(i)(B) of paragraph (b) of
this Section 8, then Dealer or its affiliate may sell such Shares or Share Termination Delivery
Units, as the case may be, during a period (the “Resale Period”) commencing on the Exchange
Business Day following delivery of such Shares or Share Termination Delivery Units, as the case may
be (which sale shall be conducted in a commercially reasonable manner), and ending on the Exchange
Business Day on which Dealer completes the sale of all such Shares or Share Termination Delivery
Units, as the case may be, or a sufficient number of Shares or Share Termination Delivery Units, as
the case may be, so that the realized net proceeds of such sales exceed the Freely Tradeable Value
(such amount of the Freely Tradeable Value, the “Required Proceeds”). If any of such delivered
Shares or Share Termination Delivery Units remain after such realized net proceeds exceed the
Required Proceeds, Dealer shall return such remaining Shares or Share Termination Delivery Units to
Issuer. If the Required Proceeds exceed the realized net proceeds from such resale, Issuer shall
transfer to Dealer by the open of the regular trading session on the Exchange on the Exchange
Business Day immediately following the last day of the Resale Period the amount of such excess (the
“Additional Amount”) in cash or in a number of additional Shares or Share Termination Delivery
Units, as the case may be (“Make-whole Shares”), in an amount that, based on the market value of
such Make-whole Shares, as determined by the Calculation Agent, on the last day of the Resale
Period, has a dollar value equal to the Additional Amount. The Resale Period shall continue to
enable the sale of the Make-whole Shares in the manner contemplated by this Section 8(c). This
provision shall be applied successively until the Additional Amount is equal to zero, subject to
Section 8(e).

(d) Beneficial Ownership. Notwithstanding anything to the contrary in the Agreement or this
Confirmation, in no event shall Dealer be entitled to receive, or shall be deemed to receive, any
Shares in connection with this Transaction if, immediately upon giving effect to such receipt of
such Shares (i) Dealer’s Beneficial Ownership would be equal to or greater than 8.0% of the
outstanding Shares or (ii) Dealer or any “affiliate” or “associate” of Dealer, would be an
“interested stockholder” of Issuer, as all such terms are defined in Section 203 of the Delaware
General Corporation Law (each of clause (i) and (ii) above, an “Ownership Limitation”). If any
delivery owed to Dealer hereunder is not made, in whole or in part, as a result of an Ownership
Limitation, Dealer’s right to receive such delivery shall not be extinguished and Issuer shall make
such delivery as promptly as practicable after, but in no event later than one Exchange Business
Day after, Dealer gives notice to Issuer that such delivery would not result in any of such
Ownership Limitations being breached. “Dealer’s Beneficial Ownership” means the “beneficial
ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated
thereunder (collectively, “Section 13”) of Shares by Dealer, together with any affiliate or other
person subject to aggregation with Dealer under Section 13, or by any “group” (within the meaning
of Section 13) of which Dealer is or may be deemed to be a part. Notwithstanding anything in the
Agreement or this Confirmation to the contrary, Dealer (or the affiliate designated by Dealer
pursuant to Section 8(l) below) shall not become the record or beneficial owner, or otherwise have
any rights as a holder, of any Shares that Dealer (or such affiliate) is not entitled to receive at
any time pursuant to this Section 8(d), until such time as such Shares are delivered pursuant to
this Section 8(d).

(e) Limitations on Settlement by Issuer. Notwithstanding anything herein or in the Agreement
to the contrary, in no event shall Issuer be required to deliver Shares in connection with the
Transaction in excess of 4,843,838 Shares (the “Capped Number”). Issuer represents and warrants
(which shall be deemed to be repeated on each day that the Transaction is outstanding) that the
Capped Number is equal to or less than the number of authorized but unissued Shares of the Issuer
that are not reserved for future issuance in connection with transactions in the Shares (other than
the Transaction) on the date of the determination of the Capped Number (such Shares, the “Available
Shares”). In the event Issuer shall not have delivered the full number of Shares otherwise
deliverable as a result of this Section 8(e) (the resulting deficit, the “Deficit Shares”), Issuer
shall be continually obligated to deliver, from time to time until the full number of Deficit
Shares have been delivered pursuant to this paragraph, Shares when, and to the extent, that (i)
Shares are repurchased, acquired or otherwise received by Issuer or any of its subsidiaries after
the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (ii)
authorized and unissued Shares reserved for issuance in respect of other transactions prior to such
date which prior to the relevant date become no longer so reserved or (iii) Issuer additionally
authorizes any unissued Shares that are not reserved for other transactions. Issuer shall
immediately notify Dealer of the occurrence of any of the foregoing events (including the number of
Shares subject to clause (i), (ii) or (iii) and the corresponding number of Shares to be delivered)
and promptly deliver such Shares thereafter.

(f) Right to Extend. Dealer may postpone any Exercise Date or any other date of valuation or
delivery with respect to some or all of the relevant Warrants (in which event the Calculation Agent
shall make appropriate adjustments to the Number of Shares to be Delivered with respect to one or
more Components), if Dealer determines, in its reasonable discretion, that such extension is
reasonably necessary or appropriate to preserve Dealer’s hedging or hedge unwind activity hereunder
in light of existing liquidity conditions or to enable Dealer to effect purchases of Shares in
connection with its hedging, hedge unwind or settlement activity hereunder in a manner that would,
if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with applicable legal,
regulatory or self-regulatory requirements, or with related policies and procedures applicable to
Dealer.

(g) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Issuer’s bankruptcy. For the avoidance of doubt, the parties agree
that the preceding sentence shall not apply at any time other than during Issuer’s bankruptcy to
any claim arising as a result of a breach by Issuer of any of its obligations under this
Confirmation or the Agreement. For the avoidance of doubt, the parties acknowledge that this
Confirmation is not secured by any collateral that would otherwise secure the obligations of Issuer
herein under or pursuant to any other agreement.

(h) Amendments to Equity Definitions and the Agreement. The following amendments shall be
made to the Equity Definitions and to the Agreement:

(i) The first sentence of Section 11.2(c) of the Equity Definitions, prior to clause
(A) thereof, is hereby amended to read as follows: ‘(c) If “Calculation Agent Adjustment” is
specified as the Method of Adjustment in the related Confirmation of a Share Option
Transaction, then following the announcement or occurrence of any Potential Adjustment
Event, the Calculation Agent will determine whether such Potential Adjustment Event has a
material effect on the theoretical value of the relevant Shares or options on the Shares
and, if so, will (i) make appropriate adjustment(s), if any, to any one or more of:’ and,
the portion of such sentence immediately preceding clause (ii) thereof is hereby amended by
deleting the words “diluting or concentrative” and the words “(provided that no adjustments
will be made to account solely for changes in volatility, expected dividends, stock loan
rate or liquidity relative to the relevant Shares)” and replacing such latter phrase with
the words “(and, for the avoidance of doubt, adjustments may be made to account solely for
changes in volatility, expected dividends, stock loan rate or liquidity relative to the
relevant Shares)”;

(ii) Section 11.2(a) and 11.2(e)(vii) of the Equity Definitions is hereby amended by
deleting the words “diluting or concentrative” and replacing them with “material” and adding
the phrase “or Warrants” at the end of the sentence;

(iii) Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting
from the fourth line thereof the word “or” after the word “official” and inserting a comma
therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting
the following words therefor “or (C) at Dealer’s option, the occurrence of any of the events
specified in Section 5(a)(vii) (1) through (9) of the ISDA 2002 Master Agreement with
respect to that Issuer;”

(iv) Section 12.9(b)(iv) of the Equity Definitions is hereby amended by:

(x) deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)”
following subsection (A) and (3) the phrase “in each case” after subsection
(B); and

(y) deleting the phrase “neither the Non-Hedging Party nor the Lending Party
lends Shares in the amount of the Hedging Shares or” in the penultimate
sentence;

(v) Section 12.9(b)(v) of the Equity Definitions is hereby amended by:

(x) adding the word “or” immediately before subsection “(B)” and deleting the
comma at the end of subsection (A); and

(y) (1) prior to the period at the end of subsection (C), adding the phrase
“, subject to the Non-Hedging Party having entered into such documentation
containing representations, warranties and agreements relating to securities
law and other issues as requested by the Hedging Party that the Hedging Party
has determined, in its reasonable discretion, to be reasonably necessary or
appropriate to allow the Hedging Party to preserve its hedging or hedge
unwind activities in connection with the Transaction in a manner compliant
with applicable legal, regulatory or self-regulatory requirements, or with
related policies and procedures applicable to the Hedging Party and (2)
deleting clause (X) in the final sentence.

(i) Repurchase Notices. Issuer shall, on any day on which Issuer effects any repurchase of
Shares, promptly give Dealer a written notice of such repurchase (a “Repurchase Notice”) on such
day if, following such repurchase, the Notice Percentage as determined on such day is (A) greater
than 6.0% and (B) greater by 0.5% than the Notice Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice
Percentage as of the date hereof). The “Notice Percentage” as of any day is the fraction,
expressed as a percentage, the numerator of which is the Number of Shares and the denominator of
which is the number of Shares outstanding on such day. In the event that Issuer fails to provide
Dealer with a Repurchase Notice on the day and in the manner specified in this Section 8(i) then
Issuer agrees to indemnify and hold harmless Issuer, its affiliates and their respective directors,
officers, employees, agents and controlling persons (Dealer and each such person being an
“Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or
actions in respect thereof), joint or several, to which such Indemnified Party may become subject
under applicable securities laws, including without limitation, Section 16 of the Exchange Act,
relating to or arising out of such failure. If for any reason the foregoing indemnification is
unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then
Issuer shall contribute, to the maximum extent permitted by law, to the amount paid or payable by
the Indemnified Party as a result of such loss, claim, damage or liability. In addition, Issuer
will reimburse any Indemnified Party for all reasonable expenses (including reasonable counsel fees
and expenses) as they are incurred (after notice to Issuer) in connection with the investigation
of, preparation for or defense or settlement of any pending or threatened claim or any action, suit
or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and
whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of
Issuer. This indemnity shall survive the completion of the Transaction contemplated by this
Confirmation and any assignment and delegation of the Transaction made pursuant to this
Confirmation or the Agreement shall inure to the benefit of any permitted assignee of Dealer.

(j) Transfer and Assignment. Either party may transfer any of its rights or obligations under
the Transaction pursuant to Section 7 of the Agreement. In addition, Dealer may transfer or assign
its rights and obligations hereunder and under the Agreement, in whole or in part, at any time to
any person or entity with the prior consent of Issuer, which consent shall not be unreasonably
withheld or delayed. If (i) at any time an Excess Ownership Position exists, or a Hedging
Disruption has occurred and is continuing, and if Dealer, in its discretion, is unable (including,
without limitation, by virtue of the absence of an Issuer consent) to effect a transfer or
assignment to a third party after using its commercially reasonable efforts on pricing terms
reasonably acceptable to Dealer and within a time period reasonably acceptable to Dealer such that
an Excess Ownership Position or a Hedging Disruption, as the case may be, no longer exists or (ii)
in cases other than an Excess Ownership Position or Hedging Disruption, (A) Issuer does not
promptly (but in no event later than two Scheduled Trading Days following the date of the Dealer’s
initial request for consent to a proposed transfer or assignment (the “Initial Request Date”))
notify Dealer as to whether or not it is providing its consent to such proposed transfer or
assignment or (B) (1) Issuer does not promptly (but in no event later than two Scheduled Trading
Days following the Initial Request Date) provide its consent to a proposed transfer or assignment
by Dealer for any reason whatsoever, (2) Dealer has used good faith efforts to identify, on or
prior to the third Scheduled Trading Day following the Initial Request Date, an alternative
transferee or assignee on pricing and other terms reasonably acceptable to Dealer and (3) either
Dealer does not, after using good faith efforts, timely identify such an alternative transferee or
Issuer does not promptly (but in no event later than four Scheduled Trading Days following the
Initial Request Date) provide its consent to a proposed transfer or assignment by Dealer to any
identified alternative transferee or assignee for any reason whatsoever, then Dealer may designate
any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated
Portion”) of the Transaction, (x) such that such Excess Ownership Position or Hedging Disruption,
as the case may be, no longer exists or (y) that the Dealer proposed to transfer or assign. In the
event that Dealer so designates an Early Termination Date with respect to a portion of the
Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section
8(a) of this Confirmation as if (i) an Early Termination Date had been designated in respect of a
Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Issuer shall
be the sole Affected Party with respect to such partial termination, (iii) such portion of the
Transaction shall be the only Terminated Transaction and (iv) the reference to “two Local Business
Days” in Section 6(d)(ii) of the Agreement were replaced with “five Local Business Days”. “Excess
Ownership Position” means any of the following: (i) the Equity Percentage exceeds 8.0%, (ii) the
Warrant Equity Percentage exceeds 14.5% or (iii) Dealer or any “affiliate” or “associate” of Dealer
would own in excess of 13% of the outstanding Shares for purposes of Section 203 of the Delaware
General Corporation Law. The “Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the number of Shares that Dealer and any of its
affiliates or any other person subject to aggregation with Dealer, for purposes of the “beneficial
ownership” test under Section 13 of the Exchange Act, or of any “group” (within the meaning of
Section 13) of which Dealer is or may be deemed to be a part, beneficially owns (within the meaning
of Section 13 of the Exchange Act) on such day and (B) the denominator of which is the number of
Shares outstanding on such day. The “Warrant Equity Percentage” as of any day is the fraction,
expressed as a percentage, of (A) the product of (x) the Number of Warrants and (y) the Warrant
Entitlement divided by (B) the number of Shares outstanding on such day.

(k) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Issuer and each of its employees, representatives, or other agents may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Issuer relating to such tax treatment and tax structure.

(l) Designation by Dealer. Notwithstanding any other provision in this Confirmation to the
contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other
securities to or from Issuer, Dealer may designate any of its affiliates to purchase, sell, receive
or deliver such shares or other securities and otherwise to perform Dealer obligations in respect
of the Transaction and any such designee may assume such obligations. Dealer shall be discharged
of its obligations to Issuer to the extent of any such performance.

(m) Additional Termination Events. The occurrence of any of the following shall constitute an
Additional Termination Event with respect to which the Transaction shall be the sole Affected
Transaction and Issuer shall be the sole Affected Party; provided that with respect to any
Additional Termination Event, Dealer may choose to treat part of the Transaction as the sole
Affected Transaction, and, upon the termination of the Affected Transaction, a Transaction with
terms identical to those set forth herein except with a Number of Warrants equal to the unaffected
number of Warrants shall be treated for all purposes as the Transaction, which shall remain in full
force and effect:

(i) Dealer reasonably determines that it is advisable to terminate a portion of the
Transaction so that Dealer’s related hedging activities will comply with applicable
securities laws, rules or regulations;

(ii) any Person (as defined below) or “group” (within the meaning of Section 13(d) of
the Exchange Act), other than Issuer or its subsidiaries, files a Schedule TO or any
schedule, form or report under the Exchange Act disclosing that such person or group has
become the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the
Exchange Act, of more than 50% of the voting power of all shares of Issuer’s capital stock
entitled to vote generally in elections of directors;

(iii) consummation of any binding share exchange, consolidation or merger of Issuer
pursuant to which the Shares will be converted into cash, securities or other property or
any sale, lease or other transfer in one transaction or a series of transactions of all or
substantially all of the consolidated assets of Issuer and its subsidiaries, taken as a
whole, to any Person other than one of Issuer’s subsidiaries, other than any transaction
pursuant to which holders of the Issuer’s capital stock immediately prior to the transaction
have the entitlement to exercise, directly or indirectly, 50% or more of the total voting
power of all shares of capital stock entitled to vote generally in elections of directors of
the continuing or surviving or successor person immediately after giving effect to such
issuance;

(iv) continuing directors cease to constitute at least a majority of the Issuer’s board
of directors;

(v) Issuer’s stockholders approve any plan or proposal for liquidation or dissolution
of Issuer; or

(vi) the Shares cease to be listed on a U.S. national or regional securities exchange.

Notwithstanding the foregoing, a transaction or transactions set forth in clause (ii) or (iii)
above will not constitute an Additional Termination Event if at least 90% of the consideration paid
for the Shares (excluding cash payments for fractional shares) in such transaction or transactions
otherwise constituting an Additional Termination Event consists of shares of common stock traded on
any of the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or
the NASDAQ Global Market (or any of their respective successors) (or will be so traded or quoted
immediately following the completion of such transaction or transactions).

“Person” includes any syndicate or group that would be deemed to be a “person” under Section
13(d)(3) of the Exchange Act.

“Continuing Director” means a director who either was a member of Issuer’s board of directors
on the Trade Date or who becomes a member of the board of directors subsequent to that date and
whose election, appointment or nomination for election by Issuer’s stockholders is duly approved by
a majority of the continuing directors on Issuer’s board of directors at the time of such approval,
either by a specific vote or by approval of the proxy statement issued by Issuer on behalf of the
entire board of directors in which such individual is named as nominee for director.

(n) Netting and Set-off. Notwithstanding any provision of the Agreement (including without
limitation Section 6(f) thereof) and this Confirmation (including without limitation this Section
8(n)) or any other agreement between the parties to the contrary, (A) neither party shall net or
set off its obligations under the Transaction, if any, against its rights against the other party
under any other transaction or instrument, provided that either party may net and set off any
rights of Dealer against Issuer arising under the Transaction only against obligations of Dealer to
Issuer arising under any transaction or instrument if such transaction or instrument does not
convey rights to Dealer senior to the claims of common stockholders in the event of Issuer’s
bankruptcy and (B) in the event of the bankruptcy or liquidation of Issuer, neither party shall
have the right to set off any obligation that it may have to the other party under the Transaction
against any obligation such other party may have to it under the Agreement, this Confirmation or
any other agreement between the parties hereto, by operation of law or otherwise. The relevant
party will give notice to the other party of any netting or set off effected under this provision.

(o) Effectiveness. If, prior to the Effective Date, Dealer reasonably determines that it is
advisable to cancel the Transaction because of concerns that Dealer’s related hedging activities
could be viewed as not complying with applicable securities laws, rules or regulations, the
Transaction shall be cancelled and shall not become effective, and neither party shall have any
obligation to the other party in respect of the Transaction.

(p) Role of Agent. Each party agrees and acknowledges that (i) J.P. Morgan Securities Inc.,
an affiliate of Dealer (“JPMSI”), has acted solely as agent and not as principal with respect to
this Transaction and (ii) JPMSI has no obligation or liability, by way of guaranty, endorsement or
otherwise, in any manner in respect of this Transaction (including, if applicable, in respect of
the settlement thereof). Each party agrees it will look solely to the other party (or any
guarantor in respect thereof) for performance of such other party’s obligations under this
Transaction.

(q) Waiver of Trial by Jury. EACH OF ISSUER AND BUYER HEREBY IRREVOCABLY WAIVES (ON ITS OWN
BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF BUYER OR ITS AFFILIATES
IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

(r) Governing Law. THIS CONFIRMATION SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

7

Issuer hereby agrees (a) to check this Confirmation carefully and immediately upon
receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm
that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the
agreement between Dealer and Issuer with respect to the Transaction, by manually signing this
Confirmation or this page hereof as evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed copy to us.

Yours faithfully,

J.P. MORGAN SECURITIES INC.,

AS AGENT FOR JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION

	 	 	 	 	 	 	 
	
 
	 	 	 	By:
	 	/s/ Jeffrey Zajkowski
	
 
	 	 	 	 	 	 
	
 
	 	 	 	 	 	Name: Jeffrey Zajkowski

Title: Managing Director
	Agreed and Accepted By:

	 	

	 	

	 	

	ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
	 	 	 	 
	By:

	 	/s/ David Wilson
	 	

	 	

	
 
	 	 
	 	

	 	

	 	 	Name: David Wilson

Title: Senior Vice President and

Chief Financial Officer

8

ANNEX A

For each Component of the Transaction, the Number of Warrants and Expiration Date is set forth
below.

	 	 	 	 	 	 	 
	Component Number	 	Number of Warrants	 	Expiration Date
	241.

	 	 	20,183	 	 	May 30, 2013
	242.

	 	 	20,183	 	 	May 31, 2013
	243.

	 	 	20,183	 	 	June 3, 2013
	244.

	 	 	20,183	 	 	June 4, 2013
	245.

	 	 	20,183	 	 	June 5, 2013
	246.

	 	 	20,183	 	 	June 6, 2013
	247.

	 	 	20,183	 	 	June 7, 2013
	248.

	 	 	20,183	 	 	June 10, 2013
	249.

	 	 	20,183	 	 	June 11, 2013
	250.

	 	 	20,183	 	 	June 12, 2013
	251.

	 	 	20,183	 	 	June 13, 2013
	252.

	 	 	20,183	 	 	June 14, 2013
	253.

	 	 	20,183	 	 	June 17, 2013
	254.

	 	 	20,183	 	 	June 18, 2013
	255.

	 	 	20,183	 	 	June 19, 2013
	256.

	 	 	20,183	 	 	June 20, 2013
	257.

	 	 	20,183	 	 	June 21, 2013
	258.

	 	 	20,183	 	 	June 24, 2013
	259.

	 	 	20,183	 	 	June 25, 2013
	260.

	 	 	20,183	 	 	June 26, 2013
	261.

	 	 	20,183	 	 	June 27, 2013
	262.

	 	 	20,183	 	 	June 28, 2013
	263.

	 	 	20,183	 	 	July 1, 2013
	264.

	 	 	20,183	 	 	July 2, 2013
	265.

	 	 	20,183	 	 	July 3, 2013
	266.

	 	 	20,183	 	 	July 5, 2013
	267.

	 	 	20,183	 	 	July 8, 2013
	268.

	 	 	20,183	 	 	July 9, 2013
	269.

	 	 	20,183	 	 	July 10, 2013
	270.

	 	 	20,183	 	 	July 11, 2013
	271.

	 	 	20,183	 	 	July 12, 2013
	272.

	 	 	20,183	 	 	July 15, 2013
	273.

	 	 	20,183	 	 	July 16, 2013
	274.

	 	 	20,183	 	 	July 17, 2013
	275.

	 	 	20,183	 	 	July 18, 2013
	276.

	 	 	20,183	 	 	July 19, 2013
	277.

	 	 	20,183	 	 	July 22, 2013
	278.

	 	 	20,183	 	 	July 23, 2013
	279.

	 	 	20,183	 	 	July 24, 2013
	280.

	 	 	20,183	 	 	July 25, 2013
	281.

	 	 	20,183	 	 	July 26, 2013
	282.

	 	 	20,183	 	 	July 29, 2013
	283.

	 	 	20,183	 	 	July 30, 2013
	284.

	 	 	20,183	 	 	July 31, 2013
	285.

	 	 	20,183	 	 	August 1, 2013
	286.

	 	 	20,183	 	 	August 2, 2013
	287.

	 	 	20,183	 	 	August 5, 2013
	288.

	 	 	20,183	 	 	August 6, 2013
	289.

	 	 	20,183	 	 	August 7, 2013
	290.

	 	 	20,183	 	 	August 8, 2013
	291.

	 	 	20,183	 	 	August 9, 2013
	292.

	 	 	20,183	 	 	August 12, 2013
	293.

	 	 	20,183	 	 	August 13, 2013
	294.

	 	 	20,183	 	 	August 14, 2013
	295.

	 	 	20,183	 	 	August 15, 2013
	296.

	 	 	20,183	 	 	August 16, 2013
	297.

	 	 	20,183	 	 	August 19, 2013
	298.

	 	 	20,183	 	 	August 20, 2013
	299.

	 	 	20,183	 	 	August 21, 2013
	300.

	 	 	20,183	 	 	August 22, 2013
	301.

	 	 	20,183	 	 	August 23, 2013
	302.

	 	 	20,183	 	 	August 26, 2013
	303.

	 	 	20,183	 	 	August 27, 2013
	304.

	 	 	20,183	 	 	August 28, 2013
	305.

	 	 	20,183	 	 	August 29, 2013
	306.

	 	 	20,183	 	 	August 30, 2013
	307.

	 	 	20,183	 	 	September 3, 2013
	308.

	 	 	20,183	 	 	September 4, 2013
	309.

	 	 	20,183	 	 	September 5, 2013
	310.

	 	 	20,183	 	 	September 6, 2013
	311.

	 	 	20,183	 	 	September 9, 2013
	312.

	 	 	20,183	 	 	September 10, 2013
	313.

	 	 	20,183	 	 	September 11, 2013
	314.

	 	 	20,183	 	 	September 12, 2013
	315.

	 	 	20,183	 	 	September 13, 2013
	316.

	 	 	20,183	 	 	September 16, 2013
	317.

	 	 	20,183	 	 	September 17, 2013
	318.

	 	 	20,183	 	 	September 18, 2013
	319.

	 	 	20,183	 	 	September 19, 2013
	320.

	 	 	20,183	 	 	September 20, 2013
	321.

	 	 	20,183	 	 	September 23, 2013
	322.

	 	 	20,183	 	 	September 24, 2013
	323.

	 	 	20,183	 	 	September 25, 2013
	324.

	 	 	20,183	 	 	September 26, 2013
	325.

	 	 	20,183	 	 	September 27, 2013
	326.

	 	 	20,183	 	 	September 30, 2013
	327.

	 	 	20,183	 	 	October 1, 2013
	328.

	 	 	20,183	 	 	October 2, 2013
	329.

	 	 	20,183	 	 	October 3, 2013
	330.

	 	 	20,183	 	 	October 4, 2013
	331.

	 	 	20,183	 	 	October 7, 2013
	332.

	 	 	20,183	 	 	October 8, 2013
	333.

	 	 	20,183	 	 	October 9, 2013
	334.

	 	 	20,183	 	 	October 10, 2013
	335.

	 	 	20,183	 	 	October 11, 2013
	336.

	 	 	20,183	 	 	October 14, 2013
	337.

	 	 	20,183	 	 	October 15, 2013
	338.

	 	 	20,183	 	 	October 16, 2013
	339.

	 	 	20,183	 	 	October 17, 2013
	340.

	 	 	20,183	 	 	October 18, 2013
	341.

	 	 	20,183	 	 	October 21, 2013
	342.

	 	 	20,183	 	 	October 22, 2013
	343.

	 	 	20,183	 	 	October 23, 2013
	344.

	 	 	20,183	 	 	October 24, 2013
	345.

	 	 	20,183	 	 	October 25, 2013
	346.

	 	 	20,183	 	 	October 28, 2013
	347.

	 	 	20,183	 	 	October 29, 2013
	348.

	 	 	20,183	 	 	October 30, 2013
	349.

	 	 	20,183	 	 	October 31, 2013
	350.

	 	 	20,183	 	 	November 1, 2013
	351.

	 	 	20,183	 	 	November 4, 2013
	352.

	 	 	20,183	 	 	November 5, 2013
	353.

	 	 	20,183	 	 	November 6, 2013
	354.

	 	 	20,183	 	 	November 7, 2013
	355.

	 	 	20,183	 	 	November 8, 2013
	356.

	 	 	20,183	 	 	November 11, 2013
	357.

	 	 	20,183	 	 	November 12, 2013
	358.

	 	 	20,183	 	 	November 13, 2013
	359.

	 	 	20,183	 	 	November 14, 2013
	360.

	 	 	20,142	 	 	November 15, 2013

9

ANNEX B

	 	 	The Strike Price, Premium and Final Disruption Date for the Transaction are set forth below.

	 	 	 
	Strike Price:

	 	USD16.422
	Premium:

	 	USD2,463,125.25
	Final Disruption Date:

	 	November 27, 2013.

10

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