10. Commitments and Contingencies Guarantee of Nexstar Debt Mission is a guarantor of and has pledged substantially all its assets, excluding FCC licenses, to guarantee Nexstars credit facility. Mission is also a guarantor of Nexstars 6.125% Notes and Nexstars 5.625% Notes. The 6.125% Notes and the 5.625% Notes are general senior unsecured obligations subordinated to all of Missions senior secured debt. In the event that Nexstar is unable to repay amounts due under these debt obligations, Mission will be obligated to repay such amounts. The maximum potential amount of future payments that Mission would be required to make under these guarantees would be generally limited to the amount of borrowings outstanding under Nexstars senior secured credit facility, the 6.125% Notes and the 5.625% Notes. As of March 31, 2019, Nexstar had $273.6 million outstanding obligations under its 6.125% Notes due on February 15, 2022, $888.7 million outstanding obligations under its 5.625% Notes due on August 1, 2024, and a maximum commitment of $2.191 billion under its senior secured credit facility, of which $1.213 billion in Term Loan B and $815.0 million in Term Loan A were outstanding. Nexstar also has a $163.4 million revolving loan commitment, of which no amount was outstanding as of March 31, 2019. Nexstars Term Loan B matures on January 17, 2024. Nexstars Term Loan A and revolving loans mature on October 26, 2023. On April 29, 2019, Nexstar prepaid $30.0 million of the outstanding principal balance under its term loans, funded by cash on hand. Purchase Options Granted to Nexstar In consideration of the guarantee of Missions bank credit facility by Nexstar, Mission has granted Nexstar purchase options to acquire the assets and assume the liabilities of each Mission station, subject to FCC consent, for consideration equal to the greater of (1) seven times the stations cash flow, as defined in the option agreement, less the amount of its indebtedness as defined in the option agreement, or (2) the amount of its indebtedness. Cash flow is defined as income or loss from operations, plus depreciation and amortization (including amortization of broadcast rights), interest income, nonrecurring expenses (including time brokerage agreement fees), network compensation payments received or receivable and corporate management fees, less payments for broadcast rights and network compensation revenue. Additionally, Missions shareholders have granted Nexstar an option to purchase any or all of the Companys stock, subject to FCC consent, for a price equal to the pro rata portion of the greater of (1) five times the Mission stations cash flow, as defined in the agreement, reduced by the amount of indebtedness, as defined in the agreement, or (2) $100,000. These option agreements (which expire on various dates between 2021 and 2028) are freely exercisable or assignable by Nexstar without consent or approval by Mission or its shareholders. The Company expects these option agreements to be renewed upon expiration. Indemnification Obligations In connection with certain agreements that the Company enters into in the normal course of its business, including local service agreements, business acquisitions and borrowing arrangements, the Company enters into contractual arrangements under which the Company agrees to indemnify the other party to such arrangement from losses, claims and damages incurred by the indemnified party for certain events as defined within the particular contract. Such indemnification obligations may not be subject to maximum loss clauses and the maximum potential amount of future payments the Company could be required to make under these indemnification arrangements may be unlimited. Historically, payments made related to these indemnifications have been insignificant and the Company has not incurred significant costs to defend lawsuits or settle claims related to these indemnification agreements. Litigation From time to time, the Company is involved with claims that arise out of the normal course of business. In the opinion of management, any resulting liability with respect to these claims would not have a material adverse effect on the Companys financial position or results of operations.