On December 8, 2012, the Board of Directors ("the Board") of General Communication, Inc. ("GCI"), based upon the recommendation of the Board's Compensation Committee, approved certain modifications to the incentive compensation plan of Gregory F. Chapados, GCI's Executive Vice President and Chief Operating Officer. The terms and conditions of such incentive compensation plan were initially reported in a Current Report on Form 8-K filing made by GCI on October 15, 2010, and were subsequently described in the definitive proxy statements filed by GCI on May 12, 2011, and May 16, 2012 (the descriptions of such incentive compensation plan are collectively referred to herein as, the "Incentive Compensation Plan Descriptions").

As a result of the promotion of Mr. Chapados to his current position in June 2012 (as reported on a Current Report on Form 8-K filing made by GCI on June 6, 2012), the Board approved an increase of $150,000, to $700,000, in his total annual target incentive compensation effective January 1, 2013. The following table shows the revised annual target incentive compensation for Mr. Chapados under each of the components set forth in the Incentive Compensation Plan Descriptions:

                                                 Gregory F. Chapados
Free Cash Flow Goal                                $         175,000
Capex Spending                                     $          50,000
Discretionary - Short-term                         $         275,000
Discretionary - Long-term                          $         200,000
Total Annual Target Incentive Plan Compensation    $         700,000

There were no other changes to Mr. Chapados' incentive compensation arrangements.