Document:

EX-10.4

 Exhibit 10.4 
 FIRST AMENDMENT TO CREDIT AGREEMENT 
 This FIRST AMENDMENT TO CREDIT AGREEMENT dated as of
November 1, 2012 (this “Amendment”), amends the Credit Agreement dated as of October 21, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among
ALASKA COMMUNICATIONS SYSTEMS HOLDINGS, INC., as borrower (the “Borrower”), ALASKA COMMUNICATIONS SYSTEMS GROUP, INC., as parent (the “Parent”), the lenders from time to time party thereto (the
“Lenders”) and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (the “Administrative Agent”). 
 RECITALS 
 The Parent has entered into the Asset Purchase and Contribution Agreement (the
“Contribution Agreement”), dated as of June 4, 2012, by and among the Parent, ACS Wireless Inc., an Alaska corporation (the “ACS Member”), General Communication, Inc., an Alaska corporation
(“GCI”), GCI Wireless Holdings, LLC, an Alaska limited liability company (the “GCI Member”), and The Alaska Wireless Network, LLC, a Delaware limited liability company (“AWN”), pursuant to which,
among other things, the respective wholesale wireless businesses of the Parent, GCI and their respective subsidiaries will be owned and operated in a joint venture with AWN being the joint venture entity (the “JV Business”).

 At the closing of the transactions contemplated by the Contribution Agreement, among other things, (i) the Parent shall sell (or cause
one or more of its affiliates to sell) ACS Assets (as defined in the Contribution Agreement) to be used in the JV Business (the “Purchased Assets”) to the GCI Member, (ii) the ACS Member and the GCI Member will each contribute
(or cause one or more of their respective affiliates to contribute) to AWN their wireless assets and certain other assets (which, in the case of the GCI Member, will include the Purchased Assets) in return for one-third and two-thirds of the equity
interests in AWN, respectively and (iii) affiliates of the Parent will enter into agreements with AWN and GCI and their affiliates pursuant to which the Parent, GCI and their respective affiliates will receive services from, and provide
services to, AWN. 
 In connection with the transactions contemplated by the Contribution Agreement, the Borrower has requested that the Credit
Agreement be amended and consents be given by the Lenders in each case as set forth herein. 
 Capitalized terms used but not defined herein
(including in the preceding recitals hereto) have the meanings assigned to them in the Credit Agreement (as amended hereby). The rules of construction specified in Section 1.03 of the Credit Agreement also apply to this Amendment. 

 AGREEMENT 
 Accordingly, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as
follows: 
 SECTION 1. Amendment of the Credit Agreement. The Credit Agreement is hereby amended as follows: 

(a) New Definitions. 
 (i) The following definitions are hereby added in the appropriate alphabetical order to Section 1.01 of the Credit Agreement: 
 “ACS Assets” means the “ACS Assets”, as such term is defined in the Contribution Agreement. 
 “ACS Member” means ACS Wireless Inc., an Alaska corporation. 

“Applicable Period” means, on any date of determination, the two-fiscal quarter period ending on the most recent ECF
Prepayment Date (or, if the most recent ECF Prepayment Date is December 31, 2012, the four-fiscal quarter period ending on such ECF Prepayment Date). 
 “Asset Contribution” means the contribution on the JV Closing Date of ACS Assets by affiliates of the Parent to AWN pursuant to and in accordance with the Contribution Agreement.

 “Asset Sale” means the sale on the JV Closing Date of ACS Assets by affiliates of the Parent to the GCI
Member pursuant to and in accordance with the Contribution Agreement. 
 “AWN” means The Alaska Wireless
Network, LLC, a Delaware limited liability company. 
 “Contribution Agreement” means the Asset Purchase and
Contribution Agreement, dated as of June 4, 2012, by and among the Parent, ACS Member, GCI, GCI Member and AWN, as in effect on the First Effective Date or as amended in accordance with Section 6.11. 

“ECF Prepayment Date” means (a) the last day of each fiscal year of the Borrower and (b) the last day of the
second fiscal quarter of each fiscal year of the Borrower. 
 “First Amendment” means the First Amendment to
Credit Agreement, dated as of November 1, 2012, among the Borrower, Parent, the Lenders party thereto and the Administrative Agent. 
 “First Effective Date” means the “First Effective Date”, as such term is defined in the First Amendment. 
 “GCI” means General Communication, Inc., an Alaska corporation. 

  
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 “GCI Member” means GCI Wireless Holdings, LLC, an Alaska limited liability
company. 
 “JV Closing Date” means the “Closing Date”, as such term is defined in the Contribution
Agreement. 
 “JV Transactions” means the Asset Sale, the Asset Contribution and the other transactions
contemplated by the Contribution Agreement and the Operating Agreement. 
 “JV Transaction Costs” means the
amounts referred to in clause (a)(iv)(3) of the definition of Adjusted EBITDA. 
 “Operating Agreement” means
the First Amended and Restated Operating Agreement of AWN in the form attached as Exhibit A to the Contribution Agreement on the First Effective Date or as amended in accordance with Section 6.11. 

“Restricted Period” means any period (a) commencing on the date of delivery of a certificate pursuant to
Section 5.01(c) showing that, for the then most recently ended period of four consecutive fiscal quarters of the Parent, the Total Leverage Ratio is greater than the Restricted Period Ratio (or on the date upon which the Borrower shall fail to
deliver such certificate when required under Section 5.01(c)), and (b) ending on the date of delivery of a certificate pursuant to Section 5.01(c) showing that, for the then most recently ended period of four consecutive fiscal
quarters of the Parent, the Total Leverage Ratio is equal to or less than the Restricted Period Ratio; provided that, solely for purposes of this definition, the maximum amount of cash and cash equivalents that may be subtracted
from Adjusted Total Debt for purposes of calculating the Total Leverage Ratio shall be “$20,000,000”. 

“Restricted Period Ratio” means, as of any date of determination, a ratio equal to (x) the maximum Total Leverage
Ratio then permitted to be maintained by the Borrower pursuant to Section 6.12(b) minus (y) 0.25x. 
 “Second
Effective Date” means the “Second Effective Date”, as such term is defined in the First Amendment. 
 (ii) As of the JV Closing Date, the following definition is hereby added in the appropriate alphabetical order to Section 1.01 of the Credit Agreement: 

“JV Closing Date Default” means the failure: 
 (a) of the ACS Member, on or prior to the JV Closing Date, (x) to grant to the Administrative Agent a first priority perfected security interest in the Equity Interests in AWN held by the ACS Member
or (y) to deliver all certificates (if any) representing all such outstanding Equity Interests and stock powers and instruments of transfer, endorsed in blank, with respect thereto; 

  
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 (b) of the Parent (or one or more of its affiliates) to (x) receive from the GCI Member
the Purchase Price (as such term is defined in the Contribution Agreement) in respect of the Asset Sale or (y) to apply, on (or substantially concurrently with) the JV Closing Date, at least $65,000,000 of the Net Cash Proceeds of such Asset
Sale to prepay the Term Loans; or 
 (c) of any of the representations and warranties of any Loan Party set forth in any Loan
Document to be true and correct in all material respects on and as of the JV Closing Date as if made on such date (or, if any such representation and warranty is expressly stated to have been made as of a specific date, as of such specific date)

 ; provided that, for the avoidance of doubt, at any time that the JV Closing Date shall not have occurred, no JV Closing Date
Default shall be deemed to have occurred. 
 (b) Amendments to Existing Definitions. The following definitions in
Section 1.01 of the Credit Agreement are hereby amended as follows: 
 (i) Effective as of June 30,
2012, the definition of “Adjusted EBITDA” is hereby deleted and replaced with the following: 
 “Adjusted
EBITDA” means, for any period, for the Parent and the Subsidiaries (determined on a consolidated basis without duplication in accordance with GAAP), Consolidated Net Income, adjusted by adding thereto, (a) to the extent deducted (or,
in the case of item (x) of this clause (a), not included) in determining Consolidated Net Income and without duplication, the sum of (i) Consolidated Interest Expense, (ii) provision for Taxes based on income, (iii) depreciation
and amortization expense, (iv) (1) Transaction Expenses incurred in connection with the Transactions, (2) other Transaction Expenses incurred after the date hereof to the extent not exceeding $4,000,000 in the aggregate in any fiscal
year of the Borrower and (3) actual out-of-pocket costs and expenses (including fees and expenses of attorneys and advisors) (x) incurred in the fiscal year ending either December 31, 2012 or December 31, 2013, in each case in
connection with the negotiation, execution and delivery of the Contribution Agreement and the consummation of the JV Transactions, to the extent not exceeding $12,000,000 in the aggregate in such fiscal years, (y) incurred in connection with
the negotiation, execution and delivery of the First Amendment and (z) incurred in connection with the termination of Hedging Agreements in compliance with Section 5.16, (v) unrealized losses on financial derivatives recognized in
accordance with Statement of Financial Accounting Standards No. 133, (vi) non-cash, stock-based compensation expense, (vii) extraordinary, nonrecurring or unusual losses (including extraordinary, non-recurring or unusual losses and
expenses on permitted sales or dispositions of assets and casualty events), (viii) the cumulative effect of a change in accounting principles (ix) all other non-cash charges that represent an accrual for which no cash is expected to be
paid in the next twelve months, (x) cash dividends or distributions from AWN 

  
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with respect to such period, to the extent that such dividends or distributions are received from AWN within 14 Business Days of the end of such period and (xi) cash dividends or
distributions received from AWN during such period but paid with respect to the immediately preceding period and not included in the calculation of “Adjusted EBITDA” in such preceding period minus (b) to the extent included in
determining Consolidated Net Income, the sum of (i) unrealized gains on financial derivatives recognized in accordance with Statement of Financial Accounting Standards No. 133, (ii) extraordinary, non-recurring or unusual gains
(including extraordinary, non-recurring or unusual gains on permitted sales or dispositions of assets and casualty events), (iii) gains on sales of assets other than in the ordinary course of business and (iv) all other non-cash
income.” 
 (ii) The definition of “Adjusted Total Debt” is hereby amended by deleting the
reference therein to “$20,000,000” and replacing it with a reference to “$40,000,000”. 

(iii) As of the JV Closing Date, the definition of “Applicable Prepayment Percentage” is hereby deleted and
replaced with the following: 
 “Applicable Prepayment Percentage” means 75%, provided that (a) if
the Senior Secured Leverage Ratio as at the last day of the most recent fiscal year shall be less than 3.00 to 1 but equal to or greater than 2.50 to 1, then such percentage shall be reduced to 50% and (b) if the Senior Secured Leverage Ratio
as at the last day of the most recent fiscal year shall be less than 2.50 to 1, then such percentage shall be reduced to 25%.” 
 (iv) As of the JV Closing Date, the definition of “Applicable Rate” is hereby amended (a) by deleting each reference therein to “3.0%” and replacing it with a reference to
“3.75%”, (b) by deleting each reference therein to “4.0%” and replacing it with a reference to “4.75%”, (c) by deleting the reference therein to “2.75%” and replacing it with a reference to
“3.50%” and (d) by deleting the reference therein to “3.75%” and replacing it with a reference to “4.50%”. 
 (v) If the JV Closing Date shall not have occurred on or prior to March 31, 2013, the definition of “Applicable Rate” shall be automatically amended as of such date such that each of the
percentages referred to in the first paragraph thereof and in the table set forth therein shall be increased by 0.25% on each of March 31, 2013, May 31, 2013 and July 31, 2013, in each case, so long as the JV Closing Date shall
not have occurred on or prior to such date. 
 (vi) As of the First Effective Date, the definition of
“Applicable Rate” is hereby amended by inserting the following sentence at the end of the second paragraph thereof: 

“For the purposes of this definition, if at any time and only for so long as the Borrower’s corporate rating (the
“Rating”) from either Moody’s or S&P (each, a “Rating Agency”) shall be lower than B2 (in the case of Moody’s) or B (in the case of S&P) (each, a “Specified Level”), then each of
the percentages referred to 

  
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in the first paragraph of this definition and in the table immediately preceding this paragraph (each, a “Specified Percentage”) shall be increased by an amount equal to
(x) 0.25% multiplied by (y) with respect to the lowest Rating then in effect from either Rating Agency, the number of levels such Rating is below the Specified Level for such Rating Agency (it being understood that, upon any
subsequent upgrade by either Rating Agency, the Specified Percentages shall be recalculated, as of the date of such upgrade, in the manner described in this paragraph, to determine the applicable increase, if any, to be added to the original
Specified Percentage).” 
 (vii) Effective as of June 30, 2012, the definition of “Available
Cash” is hereby amended by deleting clause (a)(vii) in its entirety and replacing such clause with the following: 

“(vii) to the extent added to Consolidated Net Income in determining such Adjusted EBITDA, Transaction Expenses and JV Transaction
Costs incurred during such Reference Period other than Transaction Expenses and JV Transaction Costs financed with the proceeds of Indebtedness (other than Revolving Borrowings) or issuances of Equity Interests,” 

(viii) As of the JV Closing Date, the definition of “Consolidated Net Income” is hereby amended by inserting the
following words at the end thereof, immediately prior to the “.”: 
 “; provided that there shall be
excluded the income (or loss) of AWN” 
 (ix) The definition of “Cumulative Distributable Cash” is
hereby amended by (i) deleting the reference to “(x)” therein and substituting “(w)” in lieu thereof, (ii) deleting the reference to “(y)” therein and substituting “(x)” in lieu thereof and
(iii) inserting the following words immediately after the words “pursuant to Section 6.08(b)(iv)” therein: 

“, (y) other than for purposes of Sections 2.11(c) and (d), purchases of Equity Interests of the Parent made pursuant to
Section 6.08(a)(ix)” 
 (x) The definition of “Dividend Suspension Period” is hereby amended
by deleting such definition in its entirety and substituting in lieu thereof the following: 
 “Dividend Suspension
Period” means any period (a) commencing on the date of delivery of a certificate pursuant to Section 5.01(c) showing that, for the then most recently ended period of four consecutive fiscal quarters of the Parent, the Total
Leverage Ratio is greater than 3.50 to 1 (or on the date upon which the Borrower shall fail to deliver such certificate when required under Section 5.01(c)), and (b) ending on the date of delivery of a certificate pursuant to
Section 5.01(c) showing that, for the then most recently ended period of four consecutive fiscal quarters of the Parent, the Total Leverage Ratio is equal to or less than 3.50 to 1.” 

  
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 (xi) The definition of “Indebtedness” is hereby amended by adding
the following new sentence at the end thereof: 
 “Notwithstanding the foregoing, the obligation of the ACS Member to make
“claw-back” payments described in Section 7.5(c) of the Operating Agreement to the GCI Member, and the making of such payments, to the extent the aggregate principal amount of all such obligations and payments made during the term of
this Agreement shall not exceed $15,000,000, shall not constitute “Indebtedness.” 
 (xii) The
definition of “Subsidiary” is hereby amended by adding the following new sentence at the end thereof: 
 “For the
avoidance of doubt, AWN will not be a Subsidiary on the JV Closing Date.” 
 (c) Incremental Loans. As of the JV
Closing Date, Section 2.01(c) of the Credit Agreement is hereby amended by adding the following paragraph at the end thereof: 
 “Notwithstanding anything to the contrary contained elsewhere herein, to the extent that, at any date of determination, the aggregate outstanding principal amount of indebtedness for borrowed money
(or commitments in respect thereof) of AWN exceeds $75,000,000, the Borrower shall not be permitted to request or incur Incremental Term Loans or Revolving Commitment Increases hereunder.” 

(d) Repayment of Loans. As of the First Effective Date, Section 2.10(b) of the Credit Agreement is hereby amended deleting
clause (b) in its entirety and substituting in lieu thereof the following new clause (b): 
 “Term Loans and
Incremental Term Loans. The Borrower hereby unconditionally promises to pay to the Administrative Agent (i) for the account of the Term Lenders, on the last day of each March, June, September and December, commencing with the last day of
March 2011 and ending on (but including) December 31, 2012, an aggregate principal amount equal to 0.25% of the aggregate principal amount of all Term Loans outstanding on the Closing Date, (ii) for the account of the Term Lenders, on the
last day of March, June, September and December of 2013, an aggregate principal amount equal to the lesser of (x) $1,825,000 and (y) the aggregate principal amount of all Terms Loans outstanding on such date, (iii) for the account of
the Term Lenders, on the last day of March, June, September and December of 2014, an aggregate principal amount equal to the lesser of (x) $3,300,000 and (y) the aggregate principal amount of all Terms Loans outstanding on such date,
(iv) for the account of the Term Lenders, on the last day of March, June, September and December of 2015, an aggregate principal amount equal to the lesser of (x) $3,675,000 and (y) the aggregate principal amount of all Terms Loans
outstanding on such date, (v) for the account of the Term Lenders, on the last day of each March, June, September and December, commencing on March 31, 2016, an aggregate principal amount equal to the lesser of (x) $3,300,000 and
(y) the aggregate principal amount of all 

  
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Terms Loans outstanding on such date, (vi) for the account of each Term Lender the principal amount of the Term Loans on the Term Maturity Date and (vii) for the account of each
Incremental Term Loan Lender of any Series the principal amount of the Incremental Term Loans of such Series held by such Lender on the maturity date therefor set forth in the respective Incremental Loan Amendment for such Series and such other
amounts on such dates specified in the applicable Incremental Loan Amendment in compliance with the terms of Section 2.01(c).” 
 (e) Prepayments of Loans. Section 2.11 of the Credit Agreement is hereby amended by deleting clause (d) thereof in its entirety and substituting in lieu thereof the following new clause
(d): 
 (d) Mandatory Prepayment of Excess Cash Flow. The Borrower shall prepay the Loans in accordance with
Section 2.11(h) within (x) 120 days after the end of each fiscal year of the Borrower, commencing with the fiscal year ending December 31, 2012 and (y) within 70 days after the end of the second fiscal quarter in each fiscal year
of the Borrower, commencing with the fiscal quarter ending June 30, 2013, in each case in an aggregate amount equal to any excess of (i) the Applicable Prepayment Percentage of (a) any increase in Cumulative Distributable Cash of the
Borrower and the Subsidiaries during the Applicable Period (it being understood that the determination of the amount referred to in clause (b) of the definition of “Cumulative Distributable Cash” in Section 1.01 shall not be
deemed to be an increase in Cumulative Distributable Cash and shall be disregarded for purposes hereof) minus (b) the aggregate amount of prepayments (if any) of Term Loans made during the Applicable Period pursuant to paragraph (c) above
over (ii) the aggregate amount of all voluntary prepayments of Term Loans during the Applicable Period to the extent such prepayments are not funded with the proceeds of Indebtedness. 

(f) Indebtedness. Section 6.01 of the Credit Agreement is hereby amended by (i) deleting the word “and” at the
end of clause (xiv) thereof, (ii) deleting the “.” at the end of clause (xv) thereof and substituting “; and” in lieu thereof and (iii) adding the following new clause (xvi) at the end of clause
(xv) thereof: 
 “(xvi) Indebtedness consisting of the obligation of the ACS Member to make “claw-back”
payments described in Section 7.5(c) of the Operating Agreement to the GCI Member, and the making of such payments.” 

(g) Restricted Payments; Certain Payments of Indebtedness Section 6.08(a) of the Credit Agreement is hereby amended by
(i) deleting the reference to clause “(f)(iv)” in clause (vi) thereof and substituting “(f)(v)” in lieu thereof, (ii) deleting the word “and” at the end of clause (vii) thereof, (iii) deleting
the “.” at the end of clause (viii) thereof and substituting in lieu thereof “; and” and (iv) inserting the following new clause (ix) at the end thereof: 

“(ix) notwithstanding anything to the contrary in Section 6.08(a)(iii), so long as no Default shall have occurred and be
continuing, the Parent or the Borrower may purchase Equity Interests of the Parent in an aggregate amount not to exceed $3,000,000 in any fiscal year.” 

  
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 (h) Amendments of Material Documents. Section 6.11 of the Credit Agreement is
hereby deleted and replaced with the following: 
 “Amendment of Material Documents. Neither the Parent nor the
Borrower will, nor will they permit any Subsidiary to, amend, modify or waive any of its rights under (a) its certificate of incorporation, by-laws or other organizational documents, (b) any Convertible Note Document, (c) the
Contribution Agreement or (d) the Operating Agreement, in each case in any manner that would impair in any material respect the value of the interests or rights of the Borrower thereunder or that would impair in any material respect the rights
or interests of the Administrative Agent or any Lender. For the avoidance of doubt, any change to the Outside Date (as such term is defined in the Contribution Agreement) shall be considered to materially impair the interests or rights of the
Administrative Agent and the Lenders.” 
 (i) Financial Covenants. Section 6.12 of the Credit Agreement is
hereby deleted and replaced with the following: 
 “(a) Fixed Charges Coverage Ratio. The Borrower will not permit
the Fixed Charges Coverage Ratio of the Borrower (i) as of the last day of any fiscal quarter ending prior to the JV Closing Date to be less than 2.75 to 1, (ii) as of the last day of any fiscal quarter ending after the JV Closing Date but
prior to September 30, 2014 to be less than 2.25 to 1, (iii) as of the last day of any fiscal quarter ending on or after September 30, 2014 but on or prior to September 30, 2015 to be less than 2.50 to 1 and (iv) as of the
last day of any fiscal quarter ending on or after December 31, 2015 to be less than 2.75 to 1.” 
 “(b) Total
Leverage Ratio. The Borrower will not permit the Total Leverage Ratio (i) as of the last day of any fiscal quarter ending prior to the JV Closing Date to exceed 5.25 to 1, (ii) as of the last day of any fiscal quarter ending after the
JV Closing Date but prior to September 30, 2014 to exceed 6.00 to 1, (iii) as of the last day of any fiscal quarter ending on or after September 30, 2014 but prior to March 31, 2015 to exceed 5.50 to 1 and (iv) as of the
last day of any fiscal quarter ending on or after March 31, 2015 to exceed 5.25 to 1.” 
 “(c) Senior Secured
Leverage Ratio. The Borrower will not permit the Senior Secured Leverage Ratio (i) as of the last day of any fiscal quarter ending prior to the JV Closing Date to exceed 4.40 to 1, (ii) as of the last day of any fiscal quarter ending
after the JV Closing Date but prior to September 30, 2014 to exceed 4.75 to 1, (iii) as of the last day of any fiscal quarter ending on or after September 30, 2014 but prior to March 31, 2015 to exceed 4.50 to 1 and (iv) as
of the last day of any fiscal quarter ending on or after March 31, 2015 to exceed 4.25 to 1.” 

  
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 (j) Events of Default. As of the JV Closing Date, Article VII of the Credit Agreement
is hereby amended by (i) deleting the word “or” at the end of clause (n) thereof, (ii) adding the word “or” to the end of clause (o) thereof and (iii) adding the following new clause (p) at the end
of clause (o) thereof: 
 “(p) the occurrence of a JV Closing Date Default;” 

(k) Dividend Suspension Period. The Credit Agreement is hereby amended by deleting the words “Dividend Suspension
Period” each time they appear therein, except for when such words appear in Section 6.08(a) and the definition of “Dividend Suspension Period” (as amended pursuant to this Amendment), and substituting in lieu thereof the words
“Restricted Period”. 
 SECTION 2. Consent. The Lenders hereby consent to the Asset Sale, the Asset
Contribution and the formation of AWN pursuant to the terms of the Operating Agreement and confirm that none of the foregoing constitutes a breach of Sections 5.04, 5.06, 6.03(b)(iii) or 6.04 of the Credit Agreement. 

SECTION 3. Fee; Mandatory Prepayment. 
 (a) Fee. In consideration for entering into this Amendment, on the First Effective Date the Borrower shall pay the Administrative Agent in accordance with Section 2.18 of the Credit Agreement
for the account of each Lender party hereto on the First Effective Date a fee (the “Consent Fee”) in an amount equal to the product of (i) the sum of (x) the principal amount of the Term Loan of such Lender outstanding on
the First Effective Date (for the avoidance of doubt, prior to giving effect to any prepayment described in Section 3(b)) and (y) the Revolving Commitment of such Lender outstanding on the First Effective Date and (ii) 0.25%. The
Consent Fee shall be payable on the First Effective Date in immediately available funds. Once paid, the Consent Fee shall not be refundable under any circumstances. 
 (b) Mandatory Prepayment. The Borrower shall, on or substantially concurrently with the JV Closing Date (but in no event later than the Business Day following the JV Closing Date), prepay Term
Loans in an aggregate principal amount equal to sixty-five million dollars ($65,000,000) in accordance with Section 2.18 of the Credit Agreement which payment shall constitute performance in full of the Borrower’s obligations under
Section 2.11(b) of the Credit Agreement in respect of all Net Proceeds of the Asset Sale and the Asset Contribution received on (or substantially concurrently with) the JV Closing Date. 

SECTION 4. Release of Collateral. Pursuant to Section 9.02(c)(x) of the Credit Agreement, the Borrower hereby requests the
Administrative Agent to release any Lien on property that is sold or contributed to the GCI Member or AWN pursuant to the Asset Sale or the Asset Contribution and upon receipt of descriptions of such property and UCC termination statements in
respect of such property in each case in form and substance reasonably satisfactory to the Administrative Agent the Administrative Agent shall release all Liens on such property on the Second Effective Date. 

  
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 SECTION 5. Representations and Warranties. To induce the other parties hereto to
enter into this Amendment, each of the Parent and the Borrower represents and warrants to the Lenders that (a) this Amendment has been duly authorized by all necessary corporate and, if required, stockholder action, and has been duly executed
and delivered by the Parent and the Borrower and constitutes, and the Credit Agreement as amended hereby, will constitute, a legal, valid and binding obligation of the Parent and the Borrower, enforceable in accordance with its terms, except to the
extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law, (b) on, and after giving effect to the consents set forth herein and the amendments set forth herein to occur on, the First Effective Date or the Second Effective Date, as applicable, the
representations and warranties set forth in the Loan Documents shall be true and correct in all material respects on and as of such date (or, if any such representation and warranty is expressly stated to have been made as of a specific date, as of
such specific date), except that any representation or warranty that is qualified as to materiality or “Material Adverse Effect” is true and correct in all respects, and (c) on, and after giving effect to the consents set forth herein
and the amendments set forth herein to occur on, the First Effective Date or the Second Effective Date, as applicable, no Default shall have occurred and be continuing. 
 SECTION 6. Effectiveness. 
 (a) Sections 1(a)(i), 1(a)(ii), 1(b)(i),
1(b)(iii), 1(b)(iv), 1(b)(v), 1(b)(vi), 1(b)(vii), 1(b)(viii), 1(b)(ix), 1(b)(x), 1(c), 1(d), 1(e), 1(g), 1(h), 1(j), 1(k), 2, 3 and 5 through 15 of this Amendment shall become effective on the date (the “First Effective Date”) upon
which each of the following conditions are satisfied: 
 (i) receipt by the Administrative Agent of a counterpart
of this Amendment duly executed on behalf of the Borrower, the Parent, the Subsidiary Loan Parties, the Administrative Agent and Lenders constituting the Required Lenders; 

(ii) the Administrative Agent shall have received, for the account of each Lender that has executed and delivered a
counterpart of this Amendment on or before October 31, 2012, the Consent Fee; 
 (iii) the Lenders, the
Administrative Agent and the Arrangers shall have received all fees and other amounts due and payable on or prior to the First Effective Date in connection with the this Amendment, including reimbursement or payment of all out-of-pocket expenses
(including reasonable fees, charges and disbursements of Simpson Thacher & Bartlett LLP) required to be reimbursed or paid by any Loan Party hereunder or under any other Loan Document in each case in respect of which invoices including
payment instructions have been previously delivered to the Borrower; 
 (iv) after giving effect to the consents
set forth herein and the amendments set forth herein to occur on the First Effective Date, the representations and warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all material respects on and as of the
First Effective Date (or, if any such representation and warranty is expressly stated to have been made as of a specific date, as of such specific date); and 

  
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 (v) no Default shall have occurred and be continuing. 

(b) The amendments set forth in Sections 1(b)(ii), 1(b)(xi), 1(b)(xii), 1(f), 1(i) and 4 of this Amendment shall become effective on the
date (the “Second Effective Date”) upon which each of the following conditions are satisfied: 

(i) the Administrative Agent shall have been granted a first priority perfected security interest in the Equity Interests
in AWN held by the ACS Member and shall have received all certificates (if any) representing all such outstanding Equity Interests and stock powers and instruments of transfer, endorsed in blank, with respect thereto; 

(ii) the Parent (or one or more of its affiliates) shall have received from the GCI Member the Purchase Price (as such
term is defined in the Contribution Agreement) in respect of the Asset Sale and at least $65,000,000 of the Net Cash Proceeds of such Asset Sale shall have been used (or shall be used substantially concurrently) to prepay the Term Loans; 

(iii) the occurrence of the JV Closing Date on or before September 14, 2013; 

(iv) after giving effect to the consents set forth herein and the amendments set forth herein to occur on the Second
Effective Date, the representations and warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all material respects on and as of the Second Effective Date (or, if any such representation and warranty is expressly
stated to have been made as of a specific date, as of such specific date); and 
 (v) no Default shall have
occurred and be continuing. 
 SECTION 7. Effect of Amendment. (a) Except as expressly set forth herein, this
Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, the LC Issuer or the Administrative Agent under the Credit Agreement or any other Loan Document, and
shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall
continue in full force and effect. Nothing herein shall be deemed to establish a precedent for purposes of interpreting the provisions of the Credit Agreement or the Credit Agreement as amended hereby or entitle any Loan Party to a consent to, or a
waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement, the Credit Agreement as amended hereby or any other Loan Document in similar or different
circumstances. This Amendment shall apply and be effective only with respect to the provisions of the Credit Agreement specifically referred to herein. After the First Effective Date or the Second Effective Date, as applicable, any reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import, and each reference to the Credit Agreement, “thereunder”, “thereof”, “therein” or
words of like import in any other Loan Document, shall be deemed a reference to the Credit Agreement shall mean the Credit Agreement as modified hereby. This Amendment shall constitute a “Loan Document” for all purposes of the Credit
Agreement as amended hereby and the other Loan Documents. 

  
 12 

 SECTION 8. Fees and Expenses. The Borrower agrees to pay to the Administrative Agent
and the Arrangers all reasonable out-of-pocket expenses, including the reasonable fees, charges and disbursements of Simpson Thacher & Bartlett LLP as counsel for the Arrangers, in connection with this Amendment. 

SECTION 9. Consent of Guarantors. Each of the Parent and the Subsidiary Loan Parties hereby consents to this Amendment, and to the
amendments and modifications to the Credit Agreement pursuant hereto and acknowledges the effectiveness and continuing validity of its obligations under or with respect to the Credit Agreement, any Guarantee Agreement and any Security Document, as
applicable, and its liability for the Obligations or Secured Obligations, as applicable, pursuant to the terms thereof and that such obligations are without defense, setoff and counterclaim. 

SECTION 10. Counterparts. This Amendment may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by telecopy, facsimile or email
transmission shall be effective as delivery of a manually executed counterpart of this Amendment. 
 SECTION 11.
Severability. Any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting
the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

SECTION 12. Integration. This Amendment, the other Loan Documents and any separate letter agreements with respect to fees payable
to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof
and thereof. 
 SECTION 13. Successors and Assigns. The provisions of this Amendment shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. 
 SECTION 14. Applicable Law. THIS
AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. The provisions of Sections 9.09 and 9.10 of the Credit Agreement shall apply to this Amendment to the same extent as if fully set forth herein.

 SECTION 15. Headings. The headings of this Amendment used herein are for convenience of reference only, are not part
of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment. 

  
 13 

 [Remainder of page intentionally left blank] 

  
 14 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by
their duly authorized officers, all as of the date and year first above written. 
  

			
	 ALASKA COMMUNICATIONS
 SYSTEMS HOLDINGS, INC.,

		
	By	 	
		 	 /s/ Anand Vadapalli

		 	Name: Anand Valapalli
		 	Title: President and CEO
	
	 ALASKA COMMUNICATIONS
 SYSTEMS GROUP, INC.,

		
	By	 	
		 	 /s/ Anand Vadapalli

		 	Name: Anand Valapalli
		 	Title: President and CEO

  
 15 

 
			
	 ACS OF ALASKA, INC.

ACS OF THE NORTHLAND, INC.
 ACS OF FAIRBANKS,
INC.
 ACS OF ANCHORAGE, INC.
 ACS
WIRELESS, INC.
 ACS LONG DISTANCE, INC.

ACS INTERNET, INC.
 ACS INFOSOURCE,
INC.
 ACS MESSAGING, INC.
 ACS OF
ALASKA LICENSE SUB, INC.
 ACS OF THE NORTHLAND LICENSE SUB, INC.
 ACS OF ANCHORAGE LICENSE SUB, INC.
 ACS OF FAIRBANKS LICENSE SUB, INC.

ACS WIRELESS LICENSE SUB, INC.
 ACS LONG DISTANCE
LICENSE SUB, INC.
 ACS SERVICES, INC.

ACS CABLE SYSTEMS, INC.
 CREST COMMUNICATIONS
CORPORATION
 WCI CABLE, INC.

ALASKA NORTHSTAR COMMUNICATIONS, LLC
 NORTHSTAR LICENSE CORPORATION
 WCIC HILLSBORO, LLC

WCI LIGHTPOINT LLC
 NORTHERN LIGHTS HOLDINGS,
INC.
 WORLD NET COMMUNICATIONS, INC.

ALASKA FIBER STAR, LLC
 ALASKA FIBER STAR LICENSE
CORPORATION
 ALASKA COMMUNICATIONS LLC

		
		 	By
		 	 /s/ Anand Vadapalli

		 	Name: Anand Valapalli
		 	Title: President and CEO

 
			
	JPMORGAN CHASE BANK, N.A., as Administrative Agent and as Lender
		
	By	 	
		 	 /s/ Ann B. Kerns

		 	Name: Ann B. Kerns
		 	Title: Vice PresidentEX-10.5

 Exhibit 10.5 

 
 

 
 Executive Offices 
 October 13, 2011 
 James Johnsen 
 820 Merlin Lane 
 Fairbanks, Alaska 99701 
 Dear Jim: 
 I am pleased to offer you the position of Senior Vice President, Human Resources and
Process Transformation with Alaska Communications in Anchorage, Alaska. In this capacity, you will be joining a highly professional team that is dedicated to advancing the company in its position as Alaska’s leading integrated
telecommunications company. We have structured our organization to drive our customer focused market strategy, and you will play a crucial role executing this strategy with our existing and future customers. If you accept this offer, you will report
directly to me and your effective start date will be on or before December 1, 2011. 
 In this role, you will receive $235,000.00 in annual
base salary paid on a weekly rate and delivered in bi-weekly payrolls, and a $235,000.00 target annual cash incentive for an annualized target cash compensation total of $470,000.00. Your actual incentive payment (a) will vary based on your and
our Company’s performance, (b) is earned and paid only after completion of the year-end financial audit, and (c) is paid only to employees who continue to be regular, full time employees at the time payment is made in the year
following the performance year. 
 Another substantial component of your total compensation in this job is a target annual equity award. Your
total annual target stock unit award as Senior Vice President, Human Resources and Process Transformation will be valued at 150% of your base pay, comprised of a mixture of Performance Share Units and Restricted Stock Units, which are subject to
various vesting and other conditions. We determine actual stock unit awards based on your role and performance of that role, and prorate for your actual time in the position. All awards are contingent upon Board of Directors (BOD) approval,
governing plan documents and your execution of required award documents. Attachment “A” will provide you additional information regarding your other employee benefits. 
 In appreciation for your decision to join our team, Alaska Communications will pay you a signing bonus in the amount of $50,000.00, to be paid coincident with your first paycheck. You will also become
eligible for additional grant of time-vested Restricted Stock, valued at $50,000.00, and vesting in equal portions over 2012, 2013, and 2014, subject to BOD approval and your execution of required documents. Finally, under your signing package you
will be eligible for an additional sum of $25,000.00 upon successful achievement of specific goals to be identified within two weeks of your start with Alaska Communications. The $25,000.00 lump sum will be payable in April 2012, and would be paid
to you in lieu of any prorated Incentive Compensation for the 2011 year. 
 600 Telephone Ave, Anchorage, Alaska
99503    T: [907] 297-3000    F: [907] 297-3100    alaskacommunications.com 

			
	James Johnsen	 	 Page
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	Offer Letter	 	October 13, 2011

  

 Please be aware that all compensation components outlined above are subject to change, based upon
BOD approval, as well as other terms and conditions set forth in applicable Alaska Communications policies, such as the Compensation Policy (discussed further below). 
 As Senior Vice President, Human Resources and Process Transformation you will also be covered by the Alaska Communications Officer Severance Policy. A copy of the current 2010 plan is attached. It may be
modified in the future and, as modified, will apply to you. 
 As part of your hire package you are eligible for relocation assistance up to
$50,000.00. The actual amount will be determined following a relocation survey conducted by our vendor Golden North Van Lines. Written approval from Alaska Communications’ Relocation Administrator is required before incurring any expenses or
engaging authorized service providers. Alaska Communications can deny payment for any expenses incurred without this prior approval. In addition, if you do not complete two full years employment with Alaska Communications, we require reimbursement
of a proportional amount of the relocation expenses paid based on the time not served. 
 Alaska Communications has developed a Corporate
Compliance Program (CCP) and Protection of Proprietary Information Policy (PIP) to help employees meet the Company’s expectations. Adherence to all Alaska Communications Policies & Procedures is a condition of employment at Alaska
Communications and new hires are expected to confirm their willingness to comply in writing. Copies of the current versions of both the CCP and PIP are attached for your advance review. By accepting our offer, you are agreeing to comply with these
policies, as they may be amended from time to time in the future, and certify you are not obligated by any previously signed agreements that will preclude you from working at Alaska Communications. 

In your position as an officer of our company, you will become privy to confidential and highly-sensitive competitive and proprietary information
concerning our business, including but not limited to our customers, the products and services we offer, our finances, our business strategies, and our future plans. You agree that during your employment with us, and for a period of twelve months
after termination of your employment, you will not become an officer, director, employee, contractor, consultant, partner, joint-venture, or otherwise enter a business relationship or service with any competitor of Alaska Communications in the
markets we are serving at the time your employment terminates; and for a period of twelve months after termination of your employment you also agree that you will not offer, encourage or solicit any other officer or employee of Alaska Communications
to leave the company or enter into an employment or business relationship with you or your subsequent employer. If and when you leave Alaska Communications, you agree that you will not make any disparaging statements, whether oral or written, about
the company, its officers, directors, or employees or any aspect of its business. In addition, you agree to always protect all Alaska Communications’ confidential and proprietary information you learned as a result of your employment with us in
accordance with the CCP and PIP. 
 Business conditions change from time to time and the commitment to provide continuing employment and your
total compensation package depend upon the Company’s success and continuing business requirements. As a result, I feel a responsibility to advise you that Alaska Communications is an “at will” employer. This means that either you or
the Company can terminate the employment relationship at any time for any reason, with or without cause. While I feel the need to share these cautions, please also know that I feel confident that you are joining an organization that will prevail as
the premier Alaskan communications service provider. 
 Jim, we are looking forward to you joining us at Alaska Communications – we are
committed to distinguishing our Company as the best place to work and the best place to do business, values we 

  

			
	James Johnsen	 	 Page
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	Offer Letter	 	October 13, 2011

  

 
believe go hand-in-hand. If you share these values and our vision of success as the leading integrated telecommunications provider in Alaska, please accept this offer by signing this letter and
returning the original to me no later than October 15, 2011. If you have questions about this offer, please do not hesitate to call me at my work phone: [Redacted] or cell: [Redacted]. 
 Certain ACS Policies are incorporated into this Agreement. Copies of the current versions of these “Incorporated Policies” (as listed below), are included in this offer and are incorporated
herein by reference as an integral part of this Agreement. The Company may from time to time amend these Incorporated Policies in the future, in the discretion of the Company. By accepting this offer, you agree to abide and be bound by the terms of
the Incorporated Policies, as they may be amended from time to time in the future, and, as amended, the Incorporated Policies shall apply to you. Except for changes made by the Company to the Incorporated Policies, all modifications to this
Agreement must be in writing and signed by both parties to be effective. : 
 ACS 2010 Officer Severance Policy 

ACS 2010 Compensation Policy 
 ACS Corporate
Compliance Program Manual 
 Respectfully yours, 
  

	
	 /s/ Anand Vadapalli

	Anand Vadapalli
	President & Chief Executive Officer

  

	cc:	Employee File 

  

									
	Accepted:	 	 /s/ James Johnsen
	 		 	Date:	 	October 14, 2011
		 	James Johnsen	 		 		 	

  

  

			
	James Johnsen	 	 Page
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	Offer Letter	 	October 13, 2011

  

 Attachment “A” 
 Recognizing that the best telecommunications employees in Alaska warrant the best total compensation in our market, we offer comprehensive benefits in addition to our rich cash and restricted stock
compensation that will allow you to: 
  

	•	 	 Cover you and your family’s health care needs with our Health & Welfare benefits. These quality benefits offer solid
medical coverage and other benefits to include 70% coinsurance, co-pays for prescription drugs, dental, short-term disability and many other quality of life benefits with premiums largely paid by Alaska Communications. Your coverage begins the first
of the month following the 1”full month of employment. Your contribution to fund these benefits will be deducted from your bi- weekly pay before taxes. Reduce your out-of-pocket expenses even more with our Flexible Spending Accounts,
which allow you to pay for qualified medial and dependent care with your pre-tax earnings. 
	 

  

	•	 	 Bring retirement security closer with the Alaska Communications Employee 401(k) Savings Plan, which features tax-deferred savings;
quality, diverse investment options; daily valuation; on-line and telephone account access; loans; and other attractive features. 

  

	•	 	 If residing in Alaska you will earn solid retirement benefits through the Alaska Electrical Pension Plan, which Alaska Communications
funds with rnonthly contributions on you that are expected to total approximately $10,400 annually. Contributions begin the first of the month after completing 700 hours with Alaska Communications and are prorated for the year you begin.

  

	•	 	 If residing outside of Alaska you will participate in the 401K matching plan. 

 

	•	 	 Build greater ownership in Alaska Communications by purchasing Alaska Communications stock at a 15% or more under market value through our Employee
Stock Purchase Plan. 

  

	•	 	 Balance work and the rest of life with Flexible Time Off, which you accrue at four weeks annually, and additional Personal Holidays.

  

	•	 	 Protect your earnings with Company-paid long-term disability insurance (50% income replacement), $50,000 Basic Life and AD&D insurance.
Buy higher coverage levels or purchase optional Long-term Care insurance through convenient payroll deductions. 

  

	•	 	 Develop your knowledge and skills through our Education Assistance Program, under which Alaska Communications will invest in you by paying for
qualified coursework. 

  

	•	 	 Take advantage of the 15% telecommunications discount we provide to “Alaska Communications Ambassadors” who choose Alaska
Communications services. 

 This is only an overview of the many benefits available at Alaska Communications and official plan
documents will define actual benefits. Also, benefits are subject to change from time-to-time. I encourage you to contact Rick Granbois, Compensation & Benefits Analyst, if you have questions about the benefits you are enjoying as an Alaska
Communications employee. You can reach Rick by phone (907) 564-1290 or email (rick.granbois@acsalaska.com).

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