##### Table of Contents

##### Index to Financial Statements

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549



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FORM 10-K



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|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

For the fiscal year ended December 31, 2005

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from  to
.

Commission File Number: 333-62916-02



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MISSION
BROADCASTING, INC.

(Exact name of registrant as specified in its charter)



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|                                                             |  |                                                     
|------------------------------------------------------------ |  | ----------------------------------------------------
|Delaware                                                     |  | 51-0388022                                          
|(State of Organization or Incorporation)                     |  | (IRS Employer Identification No.)                   
|                                                             | 
|7650 Chippewa Road, Suite 305 Brecksville, Ohio 44141        |  | (440) 526-2227                                      
|(Address of Principal Executive Offices, including Zip Code) |  | (Registrants Telephone Number, Including Area Code)



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Securities Registered Pursuant to Section 12(b) of the Act: None

Securities Registered
Pursuant to Section 12(g) of the Act:None



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Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.    Yes ̈No  x

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act.    Yes  x    No ̈

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that it was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No ̈

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of the Registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See definition of
accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act.(check one):

Large accelerated
filer ̈Accelerated filer ̈Non-accelerated filer  x

Indicate by
check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ̈No  x

As of June 30, 2005, Mission Broadcasting, Inc.
had one shareholder, David S. Smith. Mr. Smith held all 1,000 shares of the outstanding common stock of Mission Broadcasting, Inc. at June 30, 2005. As of January 31, 2006, Mission Broadcasting, Inc. had 1,000 shares of outstanding
common stock.



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##### Table of Contents

##### Index to Financial Statements

TABLE OF CONTENTS



|                              |  |                                                                                                              |  |     
|----------------------------- |  | ------------------------------------------------------------------------------------------------------------ |  | ----
|                              |  |                                                                                                              |  | Page
|PART I                        |  |                                                                                                              |  |     
|                              |  |                                                                                                             
|ITEM 1.                       |  | Business                                                                                                     |  | 4   
|                              |  |                                                                                                             
|ITEM 1A.                      |  | Risk Factors                                                                                                 |  | 14  
|                              |  |                                                                                                             
|ITEM 1B.                      |  | Unresolved Staff Comments                                                                                    |  | 19  
|                              |  |                                                                                                             
|ITEM 2.                       |  | Properties                                                                                                   |  | 20  
|                              |  |                                                                                                             
|ITEM 3.                       |  | Legal Proceedings                                                                                            |  | 21  
|                              |  |                                                                                                             
|ITEM 4.                       |  | Submission of Matters to a Vote of the Security Holders                                                      |  | 21  
|                              |  |                                                                                                             
|PART II                       |  |                                                                                                              |  |     
|                              |  |                                                                                                             
|ITEM 5.                       |  | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |  | 22  
|                              |  |                                                                                                             
|ITEM 6.                       |  | Selected Financial Data                                                                                      |  | 22  
|                              |  |                                                                                                             
|ITEM 7.                       |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                        |  | 23  
|                              |  |                                                                                                             
|ITEM 7A.                      |  | Quantitative and Qualitative Disclosures About Market Risk                                                   |  | 34  
|                              |  |                                                                                                             
|ITEM 8.                       |  | Financial Statements and Supplementary Data                                                                  |  | 35  
|                              |  |                                                                                                             
|ITEM 9.                       |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                         |  | 35  
|                              |  |                                                                                                             
|ITEM 9A.                      |  | Controls and Procedures                                                                                      |  | 35  
|                              |  |                                                                                                             
|ITEM 9B.                      |  | Other Information                                                                                            |  | 35  
|                              |  |                                                                                                             
|PART III                      |  |                                                                                                              |  |     
|                              |  |                                                                                                             
|ITEM 10.                      |  | Directors and Executive Officers of the Registrant                                                           |  | 36  
|                              |  |                                                                                                             
|ITEM 11.                      |  | Executive Compensation                                                                                       |  | 36  
|                              |  |                                                                                                             
|ITEM 12.                      |  | Security Ownership of Certain Beneficial Owners and Management                                               |  | 37  
|                              |  |                                                                                                             
|ITEM 13.                      |  | Certain Relationships and Related Transactions                                                               |  | 37  
|                              |  |                                                                                                             
|ITEM 14.                      |  | Principal Accountant Fees and Services                                                                       |  | 40  
|                              |  |                                                                                                             
|PART IV                       |  |                                                                                                              |  |     
|                              |  |                                                                                                             
|ITEM 15.                      |  | Exhibits and Financial Statement Schedules                                                                   |  | 41  
|                              | 
|Index to Financial Statements |  | F-1                                                                                                         
|                              | 
|Index to Exhibits             |  | E-1                                                                                                         



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##### Index to Financial Statements

General

As used in this Annual Report on Form 10-K and unless the context indicates otherwise, Mission, we, our, ours and us refers to Mission Broadcasting, Inc. Mission has entered into
time brokerage, shared services and joint sales agreements (which we generally refer to as local service agreements) with certain television stations owned by Nexstar Broadcasting, Inc. (Nexstar), but Mission does not own any equity
interests in Nexstar and Nexstar does not own any equity interests in Mission. For a description of the relationship between Mission and Nexstar, see Certain Relationships and Related Transactions.

On December 30, 2003, Mission completed the acquisition of television stations KOLR, the CBS affiliated station in Springfield, Missouri; KHMT, the
Fox affiliated station in Billings, Montana; and KAMC, the ABC affiliated station in Lubbock, Texas, from VHR Broadcasting, Inc. and its subsidiaries (VHR), and the acquisition of television stations KCIT, the Fox affiliated station in
Amarillo, Texas, and KCPN-LP, an independent station in Amarillo, Texas, from Mission Broadcasting of Amarillo, Inc. (Mission of Amarillo). VHR merged with and into two affiliates of Mission of Amarillo, and then Mission of Amarillo and
such affiliates merged with and into Mission. Prior to December 30, 2003, Quorum Broadcast Holdings, LLC (Quorum) provided sales or other services to KOLR, KHMT, KAMC, KCIT and KCPN-LP under local service agreements with VHR and
Mission of Amarillo, as applicable, that were substantially similar to Nexstars local service agreements described below with Mission. On December 30, 2003, Nexstar Broadcasting Group, Inc., Nexstars ultimate parent, completed its
acquisition of all the direct and indirect subsidiaries of Quorum. The Quorum acquisition was structured as a merger of Quorums direct subsidiaries into Nexstar Broadcasting Group, Inc. and a subsequent contribution and merger of Quorums
indirect subsidiaries with and into Nexstar. Upon completion of the Quorum acquisition and the Mission mergers, Nexstar became a party to the local service agreements as successor to the Quorum subsidiaries and Mission became a party to such
agreements as the successor to VHR and Mission of Amarillo. Mission also entered into option agreements with Nexstar for Nexstars purchase of these stations.

ABRY Partners LLC, Nexstar Broadcasting Group, Inc.s principal stockholder through its various funds, both before and after the merger, held more than 50% of the voting ownership of both Nexstar Broadcasting
Group, Inc. and Quorum. Although Nexstar and Quorum did not own Mission, Mission of Amarillo or VHR and did not operate the television stations owned by Mission, Mission of Amarillo or VHR, Nexstar and Quorum were deemed to have controlling
financial interests under accounting principles generally accepted in the United States of America (U.S. GAAP) in Mission, Mission of Amarillo and VHR due to their guarantees of Missions, Mission of Amarillos and VHRs
debt and the local service and purchase option agreements described below with Mission, Mission of Amarillo and VHR. Due to these relationships and the common financial control therein, Missions acquisition of Mission of Amarillo and VHR were
accounted for as a combination of entities under common control in a manner similar to pooling of interests. This conclusion is based on the guidance in Financial Accounting Standards Board (FASB) Statement No. 141 Business
Combinations and EITF 02-05 Definition of Common Control in Relation of FASB Statement No. 141. Accordingly, Missions financial statements herein have been restated to include the financial results of the VHR
and Mission of Amarillo stations for all periods prior to 2004.

There are 210 generally recognized television markets, known as Designated
Market Areas, or DMAs, in the United States. DMAs are ranked in size according to various factors based upon actual or potential audience. DMA rankings contained in this Annual Report on Form 10-K are from the Investing in Television Market
Report 2005 4thEdition, as published by BIA Financial
Network, Inc.

Unless the context indicates otherwise: (1) the term station or commercial
station means a television broadcast station and does not include non-commercial television stations, cable program services or networks (for example, CNN, MTV and ESPN) or stations that do not meet the minimum Nielsen reporting standards; and
(2) the term independent describes a commercial television station that is not affiliated with the ABC, CBS, NBC, Fox, WB, PAX or UPN television networks.

Cautionary Note Regarding Forward-Looking Statements

This Annual Report on Form 10-K contains
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact are
forward-looking statements for purposes of federal and state securities laws, including: any projections or expectations of earnings, revenue, financial performance, liquidity and capital resources or other financial items; any
assumptions or projections about the television broadcasting industry; any statements of our plans, strategies and objectives for our future operations, performance, liquidity and capital resources or other financial items; any statements concerning
proposed new products, services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include
the words may, will, should, could, would, predicts, potential, continue, expects, anticipates, future,
intends, plans, believes, estimates, and other similar words.

Although we believe
that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ from a projection or assumption in any of our forward-looking statements. Our future financial position and results of operations,
as well as any forward-looking statements, are subject to change and inherent risks and uncertainties discussed under Item 1A. Risk Factors elsewhere in this Annual Report on Form 10-K and in our other filings with the Securities
and Exchange Commission. The forward-looking statements made in this Annual Report on Form 10-K are made only as of the date hereof, we do not have or undertake any obligation to update any forward-looking statements to reflect subsequent events or
circumstances unless otherwise required by law.



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##### Index to Financial Statements

Available Information

We file annual, quarterly and current reports, and other information with the Securities and Exchange Commission (SEC). You may read and copy any reports, statements and other information filed by us at the SECs
Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549-0102. Please call (800) SEC-0330 for further information on the Public Reference Room. The SEC maintains an Internet web site that contains reports, proxy and information
statements and other information regarding issuers, including us, that file electronically with the SEC. The address for the SECs web site is http://www.sec.gov.



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PART I

Item 1. Business

Overview

Mission Broadcasting, Inc. (Mission, the Company, or also referenced as we us and our), formerly known as Mission Broadcasting of Wichita Falls, Inc.
(Mission of Wichita Falls), completed a merger with Bastet Broadcasting, Inc. (Bastet) and Mission Broadcasting of Joplin, Inc. (Mission of Joplin), a wholly-owned subsidiary of Mission of Wichita Falls, on
September 30, 2002. Bastet and Mission were separate entities, 100% owned by the same third party at the beginning of fiscal year 2002.

Bastet was formed in 1997 to own and operate television stations in small- and medium-sized markets across the United States. Bastet completed its first acquisition in January 1998, with the purchase of WYOU, the CBS affiliate in Wilkes
Barre-Scranton, Pennsylvania. Bastet subsequently purchased WFXP, the Fox affiliate in Erie, Pennsylvania in November 1998. Mission of Wichita Falls was incorporated in 1998, and commenced operations on June 1, 1999, with its acquisition of
KJTL, a Fox affiliated station, and KJBO-LP, a UPN affiliated station, both in Wichita Falls, Texas. In December 2001, Mission of Joplin entered into a Time Brokerage Agreement (TBA) with GOCOM Broadcasting of Joplin, L.L.C.
(GOCOM), a subsidiary of the company currently known as Piedmont Television Holdings, LLC, to provide certain programming to and to sell the advertising time of KODE, the ABC affiliate in Joplin, Missouri, pending the acquisition of
certain of the stations assets, which closed on September 30, 2002.

In January 2003, Mission entered into operations under a
local marketing agreement with LIN Television Corporation and two of its subsidiaries, with regard to KRBC, the NBC affiliated station in Abilene-Sweetwater, Texas, and KSAN, the NBC affiliated station in San Angelo, Texas. Operations under the
local marketing agreement terminated on June 13, 2003 in conjunction with Missions purchase of substantially all of the stations assets. Mission entered into a shared services agreement (SSA) with Nexstar for KRBC and
KSAN on that date.

In May 2003, Mission entered into a TBA with Bahakel Communications to provide certain programming to and to sell the
advertising time of WFXW (formerly WBAK), the Fox affiliated station in Terre Haute, Indiana. Operations under the TBA terminated on April 6, 2004 in conjunction with Missions purchase of substantially all of the stations assets.
Mission entered into an SSA and a joint sales agreement (JSA) with Nexstar for WFXW on May 9, 2003.

In December 2003,
Mission entered into a purchase agreement with a subsidiary of Clear Channel Communications to acquire substantially all of the assets of WUTR, the ABC affiliated station in Utica, New York. The acquisition closed on April 1, 2004. In addition,
on April 1, 2004, Mission entered into an SSA and a JSA with Nexstar for WUTR.

In October 2004, Mission entered into a purchase
agreement with Young Broadcasting, Inc. and Winnebago Television Corporation to acquire substantially all of the assets of WTVO, the ABC affiliated station in Rockford, Illinois. In November 2004, Mission entered into a TBA with Young Broadcasting,
Inc. and Winnebago Television Corporation to provide certain programming to and sell the advertising time of WTVO. In addition, in November 2004, Mission entered into an SSA and a JSA with Nexstar for WTVO. Missions operations under the TBA
terminated on January 4, 2005 in conjunction with the acquisition.

On December 30, 2003, Mission completed the acquisition of
television stations KOLR, the CBS affiliated station in Springfield, Missouri; KHMT, the Fox affiliated station in Billings, Montana; and KAMC, the ABC affiliated station in Lubbock, Texas, from VHR Broadcasting, Inc. and its subsidiaries
(VHR), and the acquisition of television stations KCIT, the Fox affiliated station in Amarillo, Texas, and KCPN-LP, an independent station in Amarillo, Texas, from Mission Broadcasting of Amarillo, Inc. (Mission of Amarillo).
VHR merged with and into two affiliates of Mission of Amarillo, and then Mission of Amarillo and such affiliates merged with and into Mission. Prior to December 30, 2003, Quorum Broadcast Holdings, LLC (Quorum) provided sales or
other services to KOLR, KHMT, KAMC, KCIT and KCPN-LP under local service agreements with VHR and Mission of Amarillo, as applicable, that were substantially similar to Nexstars local service agreements described below with Mission. On
December 30, 2003, Nexstar Broadcasting Group, Inc., Nexstars ultimate parent, completed its acquisition of all the direct and indirect subsidiaries of Quorum. The Quorum acquisition was structured as a merger of Quorums direct
subsidiaries into Nexstar Broadcasting Group, Inc. and a subsequent contribution and merger of Quorums indirect subsidiaries with and into Nexstar. Upon completion of the Quorum acquisition and the Mission mergers, Nexstar became a party to
the local service agreements as successor to the Quorum subsidiaries and Mission became a party to such agreements as the successor to VHR and Mission of Amarillo. Mission also entered into option agreements with Nexstar for Nexstars purchase
of these stations.

ABRY Partners LLC, Nexstar Broadcasting Group, Inc.s principal stockholder through its various funds, both before
and after the merger, held more than 50% of the voting ownership of both Nexstar Broadcasting Group, Inc. and Quorum. Although Nexstar and Quorum did not own Mission, Mission of Amarillo or VHR and did not operate the television stations owned by
Mission, Mission of Amarillo or VHR, Nexstar and Quorum were deemed to have controlling financial interests under accounting principles generally accepted in the United States of America (U.S. GAAP) in Mission, Mission of Amarillo and
VHR due to their guarantees of Missions, Mission of Amarillos and VHRs debt and the local service and purchase option agreements described below with Mission, Mission of Amarillo and VHR. Due to these relationships and the common
financial control therein, Missions acquisition of Mission of



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##### Index to Financial Statements

Amarillo and VHR were accounted for as a combination of entities under common control in a manner similar to pooling of
interests. This conclusion is based on the guidance in Financial Accounting Standards Board (FASB) Statement No. 141 Business Combinations and EITF 02-05 Definition of Common Control in Relation of FASB
Statement No. 141. Accordingly, Missions financial statements herein have been restated to include the financial results of the VHR and Mission of Amarillo stations for all periods prior to 2004.

Our principal offices are located at 7650 Chippewa Road, Suite 305, Brecksville, Ohio 44141. Our telephone number is (440) 526-2227.

Local Service Agreements and Purchase Options

The
following table summarizes the various local service agreements Missions stations had in effect as of December 31, 2005 with Nexstar-owned stations:



|                   |  |                                                                                                      
|------------------ |  | -----------------------------------------------------------------------------------------------------
|Service Agreements |  | Stations                                                                                             
|TBA Only (1)       |  | WFXP and KHMT                                                                                        
|                   | 
|SSA & JSA (2)      |  | KJTL, KJBO-LP, KOLR, KCIT, KCPN-LP, KAMC, KRBC, KSAN, WUTR, WFXW (formerly WBAK), WYOU, KODE and WTVO

---

|(1) | Mission has a TBA for each of these stations which allows Nexstar to program most of each stations broadcast time, sell each stations advertising time and
retain the advertising revenue generated in exchange for monthly payments to Mission.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Mission has both an SSA and a JSA for each of these stations. The SSA allows the sharing of services including news production, technical maintenance and security, in
exchange for Nexstars right to receive certain payments from Mission as described in the SSAs. The JSAs permit Nexstar to sell and retain a percentage of the net revenue from the stations advertising time in return for monthly payments
to Mission of the remaining percentage of net revenue, as described in the JSAs.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The arrangements under the SSAs and JSAs
have had the effect of Nexstar receiving substantially all of the available cash, after debt service costs, generated by the stations listed above. The arrangements under the TBAs have also had the effect of Nexstar receiving substantially all of
the available cash generated by the TBA stations listed above. Mission anticipates that Nexstar will continue to receive substantially all of Missions available cash, after payments for debt service costs, generated by the stations listed
above.

Nexstar Broadcasting Group, Inc. and its subsidiaries (Nexstar Broadcasting Group) guarantee the obligations incurred
under our senior credit facility. We are a guarantor of the senior credit facility entered into by Nexstar and the senior subordinated notes issued by Nexstar. In consideration of Nexstars guarantee of our senior credit facility,
Missions sole shareholder has granted Nexstar a purchase option to acquire the assets and assume the liabilities of each Mission television station, subject to FCC consent, for consideration equal to the greater of (1) seven times the
stations 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. These option agreements are freely exercisable or assignable by Nexstar
without consent or approval by Missions sole shareholder.

Nexstar does not own Mission or Missions television stations.
However, as a result of Nexstars guarantee of the obligations incurred under Missions senior credit facility and the arrangements under the local service agreements and purchase option agreements described above, Nexstar is deemed under
U.S. GAAP to have a controlling financial interest in Mission while complying with the Federal Communications Commission (FCC) rules regarding ownership limits in television markets. In order for both Nexstar and Mission to comply with
FCC regulations, Mission maintains complete responsibility for and control over programming, finances, personnel and operations of its stations.



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##### Index to Financial Statements

Local Service Agreements

The following table summarizes the various local service agreements Mission had in effect with Nexstar as of December 31, 2005:



|                |  |                              |  |             |  |                   |  |            |  |                                                                               
|--------------- |  | ---------------------------- |  | ----------- |  | ----------------- |  | ---------- |  | ------------------------------------------------------------------------------
|Station         |  | Market                       |  | Affiliation |  | Type of Agreement |  | Expiration |  | Consideration received from or paid to Nexstar                                
|WFXP            |  | Erie, PA                     |  | Fox         |  | TBA               |  | 8/16/06    |  | Monthly payments received from Nexstar(1)                                     
|                |  |                              |  |             | 
|KJTL and        |  | Wichita Falls, TX-Lawton, OK |  | Fox         |  | SSA               |  | 5/31/09    |  | $70 thousand per month paid to Nexstar                                        
|KJBO-LP         |  |                              |  | UPN         |  | JSA               |  | 5/31/09    |  | 70% of the KJTL/KJBO-LP net revenue collected each month received from Nexstar
|                |  |                              |  |             | 
|WYOU            |  | Wilkes Barre-Scranton, PA    |  | CBS         |  | SSA               |  | 1/4/08     |  | $200 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 9/30/14    |  | 70% of the WYOU net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|KODE            |  | Joplin, MO-Pittsburg, KS     |  | ABC         |  | SSA               |  | 3/31/12    |  | $100 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 9/30/14    |  | 70% of the KODE net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|KRBC            |  | Abilene-Sweetwater, TX       |  | NBC         |  | SSA               |  | 6/12/13    |  | $100 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 6/30/14    |  | 70% of the KRBC net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|KSAN            |  | San Angelo, TX               |  | NBC         |  | SSA               |  | 5/31/14    |  | $50 thousand per month paid to Nexstar                                        
|                |  |                              |  |             |  | JSA               |  | 5/31/14    |  | 70% of the KSAN net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|WFXW            |  | Terre Haute, IN              |  | Fox         |  | SSA               |  | 5/8/13     |  | $10 thousand per month paid to Nexstar                                        
|(formerly WBAK) |  |                              |  |             |  | JSA               |  | 5/8/13     |  | 70% of the WFXW net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|KCIT and        |  | Amarillo, TX                 |  | Fox         |  | SSA               |  | 4/30/09    |  | $60 thousand per month paid to Nexstar                                        
|KCPN-LP         |  |                              |  |            |  | JSA               |  | 4/30/09    |  | 70% of the KCIT/KCPN-LP net revenue collected each month received from Nexstar
|                |  |                              |  |             | 
|KHMT            |  | Billings, MT                 |  | Fox         |  | TBA               |  | 12/13/09   |  | Monthly payments received from Nexstar(1)                                     
|                |  |                              |  |             | 
|KAMC            |  | Lubbock, TX                  |  | ABC         |  | SSA               |  | 2/15/09    |  | $100 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 2/15/09    |  | 70% of the KAMC net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|KOLR            |  | Springfield, MO              |  | CBS         |  | SSA               |  | 2/15/09    |  | $150 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 2/15/09    |  | 70% of the KOLR net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|WUTR            |  | Utica, NY                    |  | ABC         |  | SSA               |  | 3/31/14    |  | $10 thousand per month paid to Nexstar                                        
|                |  |                              |  |             |  | JSA               |  | 3/31/14    |  | 70% of the WUTR net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|WTVO            |  | Rockford, IL                 |  | ABC         |  | SSA               |  | 10/31/14   |  | $100 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 10/31/14   |  | 70% of the WTVO net revenue collected each month received from Nexstar        

---

|(1) | Payments are variable based on stations monthly operating expenses.
|--- | --------------------------------------------------------------------

Under these agreements, Mission is responsible for certain operating expenses of its stations and therefore may have unlimited exposure to any potential operating losses. Mission will continue to operate its stations
under the SSAs and JSAs or TBAs until the termination of such agreements. The SSAs and JSAs generally have terms of ten years. Nexstar indemnifies Mission from Nexstars activities pursuant to the local service agreements.

Business Strategy

The operating revenue of
our stations is derived primarily from broadcast advertising revenue sold and collected by Nexstar and paid to us under the JSAs. Broadcast advertising revenue is affected by a number of factors, including the economic conditions of the markets in
which we operate, the demographic makeup of those markets and the marketing strategy employed in each market. Our primary operating expense consists of fixed monthly SSA fees paid to Nexstar for news production and technical and other services. To a
lesser extent, our operating expenses include employee compensation and related benefits. A large percentage of the costs involved in the operation of our stations remain fixed.



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##### Table of Contents

##### Index to Financial Statements

The Stations

The following chart sets forth general information about the stations that we owned and operated as of December 31, 2005:



|               |  |                               |  |          |  |             |  |                                 |  |                           
|-------------- |  | ----------------------------- |  | -------- |  | ----------- |  | ------------------------------- |  | --------------------------
|MarketRank (1) |  | Market                        |  | Station  |  | Affiliation |  | CommercialStations inMarket (2) |  | FCC License ExpirationDate
|54             |  | Wilkes Barre-Scranton, PA     |  | WYOU     |  | CBS         |  | 6                               |  | 8/1/07                    
|77             |  | Springfield, MO               |  | KOLR     |  | CBS         |  | 7                               |  | (4)                       
|131            |  | Amarillo, TX                  |  | KCIT     |  | Fox         |  | 6                               |  | 8/1/06                    
|               |  |                               |  | KCPN-LP  |  | -           |  |                                 |  | 8/1/06                    
|133            |  | Rockford, IL                  |  | WTVO     |  | ABC         |  | 4                               |  | (4)                       
|142            |  | Erie, PA                      |  | WFXP     |  | Fox         |  | 4                               |  | 8/1/07                    
|144            |  | Wichita Falls, TX- Lawton, OK |  | KJTL     |  | Fox         |  | 5                               |  | 8/1/06                    
|               |  |                               |  | KJBO-LP  |  | UPN         |  |                                 |  | 8/1/06                    
|145            |  | Joplin, MO-Pittsburg, KS      |  | KODE     |  | ABC         |  | 4                               |  | (4)                       
|146            |  | Lubbock, TX                   |  | KAMC     |  | ABC         |  | 5                               |  | 8/1/06                    
|150            |  | Terre Haute, IN               |  | WFXW (3) |  | Fox         |  | 3                               |  | (4)                       
|164            |  | Abilene-Sweetwater, TX        |  | KRBC     |  | NBC         |  | 5                               |  | 8/1/06                    
|166            |  | Utica, NY                     |  | WUTR     |  | ABC         |  | 4                               |  | 6/1/07                    
|171            |  | Billings, MT                  |  | KHMT     |  | Fox         |  | 4                               |  | 4/1/06(4)                 
|197            |  | San Angelo, TX                |  | KSAN     |  | NBC         |  | 4                               |  | 8/1/06                    

---

|(1) | Market rank refers to ranking the size of the Designated Market Area (DMA), in which the station is located in relation to other DMAs. Source: Investing in Television
Market Report 2005 4th Edition, as published by BIA Financial Network, Inc.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | The term commercial station means a television broadcast station and excludes non-commercial stations, religious stations, cable program services or networks. Source:
Investing in Television Market Report 2005 4th Edition, as published by BIA Financial Network, Inc.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Effective June 1, 2005, WBAK changed its call letters to WFXW.
|--- | --------------------------------------------------------------

|(4) | Application for renewal of license timely was submitted to the FCC. Under the FCCs rules, a license expiration date automatically is extended pending review of and action on
the renewal application by the FCC.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Industry Background

Industry Overview

All television stations in the country are grouped by A.C. Nielsen Company, a
national audience measuring service, into 210 generally recognized television markets, known as designated market areas (DMAs), that are ranked in size according to various metrics based upon actual or potential audience. Each DMA is an
exclusive geographic area consisting of all counties in which the home-market commercial stations receive the greatest percentage of total viewing hours. A.C. Nielsen periodically publishes data on estimated audiences for the television stations in
the various television markets throughout the country. The estimates are expressed in terms of a rating, which is a stations percentage of the total potential audience in the market, or a share, which is the
stations percentage of the audience actually watching television. A.C. Nielsen provides this data on the basis of local television households and selected demographic groupings in the market. A.C. Nielsen uses two methods to determine a
stations ratings. In larger geographic markets, A.C. Nielsen uses a combination of meters connected directly to selected television sets and weekly diaries of television viewing, while in smaller markets A.C. Nielsen uses only weekly diaries.

Whether or not a station is affiliated with one of the four major networks (NBC, ABC, CBS or Fox) has a significant impact on the
composition of the stations revenue, expenses and operations. A typical network affiliate receives a significant part of its programming including prime-time hours from the network. This programming, along with cash payments for some NBC, ABC
and CBS affiliates, is provided to the affiliate by the network in exchange for a substantial majority of the advertising time during network programs. The network then sells this advertising time and retains the revenue. The affiliate retains the
revenue from the remaining advertising time sold during network programs and from advertising time sold during non-network programs.

Broadcast television stations compete for advertising revenue primarily with other commercial broadcast television stations, cable television systems, direct broadcast satellite (DBS) systems, and, to a lesser extent, with
newspapers, radio stations and cable system operators serving the same market. Non-commercial, religious and Spanish-language broadcasting stations in many markets also compete with commercial stations for viewers. In addition, the Internet and
other leisure activities may draw viewers away from commercial television stations.

Television Broadcasting History

Commercial television broadcasting began in the United States on a regular basis in the 1940s. There are a limited number of channels available for
broadcasting in any one geographic area. Television stations can be distinguished by the frequency on which they broadcast. Television stations that broadcast over the very high frequency or VHF band (channels 2-13) of the spectrum generally have
some competitive advantage over television stations which broadcast over the ultra-high frequency or UHF band (channels above 13) of



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the spectrum because the former usually have better signal coverage and operate at a lower transmission cost. However,
the improvement of UHF transmitters and receivers, the complete elimination from the marketplace of VHF-only receivers and the expansion of cable television systems have reduced the VHF signal advantage. In addition, any disparity between VHF and
UHF is likely to diminish even further in the coming era of digital television.

Through the 1970s, network-affiliated television
broadcasters enjoyed virtual dominance in viewership and television advertising revenue because network-affiliated stations competed only with each other in most local markets. Beginning in the 1980s and continuing through today, however, this level
of dominance has changed as more local stations were authorized by the FCC and marketplace choices expanded with the growth of independent stations, new networks such as UPN, WB and PAX, and cable and satellite television services.

Cable television systems, which grew at a rapid rate beginning in the early 1970s, were initially used to retransmit broadcast television programming to
paying subscribers in areas with poor broadcast signal reception. In the aggregate, cable-originated programming has emerged as a significant competitor for viewers of broadcast television programming. With the increase in cable penetration, the
advertising share of cable networks has increased. Notwithstanding these increases in cable viewership and advertising, over-the-air broadcasting remains the primary distribution system for mass market television advertising. Basic cable penetration
(the percentage of television households which are connected to a cable system) in our television markets ranges from 43% to 78%.

DBS
systems have also rapidly increased their penetration rate in the last decade, reaching approximately 21% of U.S. households. DBS services provide nationwide distribution of video programming (including in some cases pay-per-view programming and
programming packages unique to DBS) using small receiving dishes and digital transmission technologies. In November 2004, Congress passed the Satellite Home Viewer Extension and Reauthorization Act, which permits DBS operators to continue to
distribute the signals of local television stations to subscribers in the stations local market areas, or local-into-local service, provided the DBS operator obtains carriage rights from the broadcast station.

In acquiring programming to supplement network programming, network affiliates compete with other broadcast stations in their markets. Cable systems
generally do not compete with local stations for programming. In the past, the cost of programming increased dramatically, primarily because of an increase in the number of new independent stations and a shortage of desirable programming. Recently,
however, program prices have stabilized as a result of increases in the supply of programming.

The FCC finalized its allotment of
new advanced television channels to existing broadcast stations in the first half of 1998. Advanced television is a digital television (DTV) transmission system that delivers improved video and audio signals including high definition
television and also has substantial multiplexing and data transmission capabilities. For each licensed television station, the FCC allocated a matching DTV channel. Stations were required to construct digital facilities according to a schedule set
by Congress and the FCC based on the type of station and the size of market the station is located in. Television broadcasters will be required to cease non-digital broadcasting by February 17, 2009 and return one of their channels to the FCC.



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Network Affiliations

Each of our stations is affiliated with a network pursuant to an affiliation agreement, as described below:



|         |  |                              |  |             |  |               
|-------- |  | ---------------------------- |  | ----------- |  | --------------
|Station  |  | Market                       |  | Affiliation |  | Expiration    
|KCIT     |  | Amarillo, TX                 |  | Fox         |  | June 2006     
|WFXP     |  | Erie, PA                     |  | Fox         |  | June 2006     
|KJTL     |  | Wichita Falls, TX-Lawton, OK |  | Fox         |  | June 2006     
|KJBO-LP  |  | Wichita Falls, TX-Lawton, OK |  | UPN         |  | September 2007
|WYOU     |  | Wilkes Barre-Scranton, PA    |  | CBS         |  | December 2007 
|KODE     |  | Joplin, MO-Pittsburg, KS     |  | ABC         |  | December 2007 
|WFXW (1) |  | Terre Haute, IN              |  | Fox         |  | June 2008     
|KHMT     |  | Billings, MT                 |  | Fox         |  | November 2008 
|KSAN     |  | San Angelo, TX               |  | NBC         |  | December 2010 
|KRBC     |  | Abilene-Sweetwater, TX       |  | NBC         |  | December 2010 
|WUTR     |  | Utica, NY                    |  | ABC         |  | December 2010 
|WTVO     |  | Rockford, IL                 |  | ABC         |  | December 2010 
|KAMC     |  | Lubbock, TX                  |  | ABC         |  | December 2010 
|KOLR     |  | Springfield, MO              |  | CBS         |  | June 2013     
|KCPN-LP  |  | Amarillo, TX                 |  | (2)         |  |               

---

|(1) | Effective June 1, 2005, WBAK changed its call letters to WFXW.
|--- | --------------------------------------------------------------

|(2) | Not affiliated with a network.
|--- | ------------------------------

Each affiliation
agreement provides the affiliated station with the right to broadcast all programs transmitted by the network with which it is affiliated. In exchange, the network has the right to sell a substantial majority of the advertising time during these
broadcasts. In addition, some stations receive compensation from the network based on the hours of network programming they broadcast.

Competition

Competition in the television industry takes place on several levels: competition for audience, competition for programming (including
news) and competition for advertising. Additional factors that are material to a television stations competitive position include signal coverage and assigned channel. The broadcasting industry is continually faced with technological change
and innovation, the possible rise in popularity of competing entertainment and communications media, and governmental restrictions or actions of federal regulatory bodies, including the FCC and the Federal Trade Commission, any of which could have a
material effect on our operations.

Audience. Stations compete for viewership generally against other leisure activities in
which one could choose to engage rather than watch television. Broadcast stations compete for audience share specifically on the basis of program popularity, which has a direct effect on advertising rates. A portion of the daily programming on the
NBC, CBS, ABC, Fox and UPN affiliated stations that we own is supplied by the network with which each station is affiliated. In those periods, the stations are dependent upon the performance of the network programs in attracting viewers. Stations
program non-network time periods with a combination of self-produced news, public affairs and other entertainment programming, including movies and syndicated programs purchased for cash, cash and barter, or barter only.

Through the 1970s, network television broadcasting enjoyed virtual dominance in viewership and television advertising revenue because network-affiliated
stations competed only with each other in most local markets. However, the development of methods of video transmission other than over-the-air broadcasting, and in particular the growth of cable television, has significantly altered competition for
audience share in the television industry. In addition, DBS providers, such as DirecTV and EchoStar, offer nationwide distribution of video programming (including, in some cases, pay-per-view programming and programming packages unique to DBS) using
small receiving dishes and digital transmission technology. These other transmission methods can increase competition for a broadcasting station by bringing into its market distant broadcasting signals not otherwise available to the stations
audience. Other sources of competition include home entertainment systems, such as VCRs, DVDs and television game devices. Transmission of video programming over broadband Internet may be a future source of competition to television broadcasters.

Although cable television systems were initially used to retransmit broadcast television programming to subscribers in areas with poor
broadcast signal reception, significant increases in cable television penetration and cable programming services occurred throughout the 1970s and 1980s in areas that did not have signal reception problems. As the technology of satellite program
delivery to cable systems advanced in the late 1970s, development of programming for cable television accelerated dramatically, resulting in the emergence of multiple, national-scale program alternatives and the rapid expansion of cable television
and higher subscriber growth rates. Historically, cable operators have not sought to compete with broadcast stations for a share of the local news audience. Recently, however, certain cable operators have elected to compete for these audiences and
the increased competition could have an adverse effect on our advertising revenue.



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Further advances in technology may increase competition for household audiences and advertisers. The
increased use of digital technology by cable systems and DBS, along with video compression techniques, will reduce the bandwidth required for television signal transmission. These technological developments are applicable to all video delivery
systems, including over-the-air broadcasting, and have the potential to provide vastly expanded programming to highly targeted audiences. Reductions in the cost of creating additional channel capacity could lower entry barriers for new channels and
encourage the development of increasingly specialized niche programming. This ability to reach very narrowly defined audiences is expected to alter the competitive dynamics for advertising expenditures. We are unable to predict the
effect that these or other technological changes will have on the broadcast television industry or on the future results of our operations.

Programming. Competition for programming involves negotiating with national program distributors or syndicators that sell first-run and rerun packages of programming. Stations compete against in-market broadcast station
operators for exclusive access to off-network reruns (such as Seinfeld) and first-run product (such as Entertainment Tonight) in their respective markets. In addition, stations are competing against other networks with respect to
first-run programming. The broadcast networks are rerunning the same episode of a network program on affiliated cable or broadcast networks, often in the same week that it aired on a local station. Cable systems generally do not compete with local
stations for programming, although various national cable networks from time to time have acquired programs that would have otherwise been offered to local television stations. AOL Time Warner, Inc., General Electric Company, Viacom Inc., The News
Corporation Limited and the Walt Disney Company each owns a television network and also owns or controls major production studios, which are the primary source of programming for the networks. It is uncertain whether in the future such programming,
which is generally subject to short-term agreements between the studios and the networks, will be moved to the networks. Television broadcasters also compete for non-network programming unique to the markets they serve. As such, stations strive to
provide exclusive news stories, unique features such as investigative reporting and coverage of community events and to secure broadcast rights for regional and local sporting events.

Federal Regulation

The following is a brief discussion of certain provisions of the Communications
Act of 1934, as amended (Communications Act), and the FCCs regulations and policies that affect the business operations of television broadcasting stations. For more information about the nature and extent of the FCC regulation of
television broadcasting stations you should refer to the Communications Act and FCCs rules, public notices, and rulings. Over the years, Congress and the FCC have added, amended and deleted statutory and regulatory requirements to which
station owners are subject. Some of these changes have a minimal business impact whereas others may significantly affect the business or operation of individual stations or the broadcast industry as a whole. The following discussion summarizes some
of the statutory and regulatory rules and policies currently in effect.

License Grant and Renewal. Television broadcast
licenses are granted for a maximum term of eight years and are subject to renewal upon application to the FCC. The FCC is required to grant an application for license renewal if during the preceding term the station served the public interest, the
licensee did not commit any serious violations of the Communications Act or the FCCs rules, and the licensee committed no other violations of the Communications Act or the FCCs rules which, taken together, would constitute a pattern of
abuse. A majority of renewal applications are routinely granted under this standard. If a licensee fails to meet this standard the FCC may still grant renewal on terms and conditions that it deems appropriate, including a monetary forfeiture or
renewal for a term less than the normal eight-year period.

During certain limited periods after a renewal application is filed, interested
parties, including members of the public, may file petitions to deny a renewal application, to which the licensee/renewal applicant is entitled to respond. After reviewing the pleadings, if the FCC determines that there is a substantial and material
question of fact whether grant of the renewal application would serve the public interest, the FCC is required to hold a trial-type hearing on the issues presented. If, after the hearing, the FCC determines that the renewal applicant has met the
renewal standard the FCC will grant the renewal application. If the licensee/renewal applicant fails to meet the renewal standard or show that there are mitigating factors entitling it to renewal subject to appropriate sanctions, the FCC can deny
the renewal application. In the vast majority of cases where a petition to deny is filed against a renewal application, the FCC ultimately grants the renewal without a hearing. No competing application for authority to operate a station and replace
the incumbent licensee may be filed against a renewal application.

In addition to considering rule violations in connection with a license
renewal application, the FCC may sanction a station operator for failing to observe FCC rules and policies during the license term, including the imposition of a monetary forfeiture.

The FCC prohibits the assignment or the transfer of control of a broadcast license without prior FCC approval.

Ownership Restrictions. The FCC has rules which establish limits on the ownership of broadcast stations. These ownership limits apply to
attributable interests in a station licensee held by an individual, corporation, partnership or other entity. In the case of corporations, officers, directors and voting stock interests of 5% or more (20% or more in the case of qualified investment
companies, such as insurance companies and bank trust departments) are considered attributable interests. For partnerships, all general partners and non-insulated limited partners are attributable. Limited liability companies are treated the same as
partnerships. The FCC also considers attributable the holder of more than 33% of a licensees total assets (defined as total debt plus total equity), if that person or entity also provides over 15% of the stations total weekly broadcast
programming or has an attributable interest in another media entity in the same market which is subject to the FCCs ownership rules, such as a radio or television station, cable television system or daily newspaper.



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Local Ownership (Duopoly Rule). The current duopoly rule, adopted in 1999, continues to
govern local television ownership pending the outcome of the court proceedings and any further FCC proceedings with respect to changes to this rule. Under the 1999 duopoly rule, a single entity is allowed to own or have attributable interests in two
television stations in a market if (1) the two stations do not have overlapping service areas, or (2) after the combination there are at least eight independently owned and operating full-power television stations and one of the combining
stations is not ranked among the top four stations in the DMA. The 1999 duopoly rule allows the FCC to consider waivers to permit the ownership of a second station only in cases where the second station has failed or is failing or unbuilt.

On June 2, 2003, the FCC modified the duopoly rule to provide greater opportunities for television duopolies in certain
circumstances, permitting duopolies in markets with five or more television stations, provided that a single entity may not hold an attributable interest in more than one station ranked among the top four stations in the market based on audience
share. The FCCs modified rule was to become effective on September 4, 2003. However, on September 3, 2003, a three-judge panel of the U.S. Court of Appeals for the Third Circuit stayed the effectiveness of the new rule and on
June 24, 2004, the Court remanded this rule back to the FCC for further consideration. The proposed 2003 modified rule is also subject to petitions for reconsideration filed with the FCC. In addition, Congress may consider modification of this
rule when it considers revisions to the Communications Act.

Under both the proposed 2003 modified rule and the 1999 duopoly rule, the FCC
attributes toward the local television ownership limits another in-market station when one station owner programs a second in-market station pursuant to a time brokerage or local marketing agreement, if the programmer provides more than 15 percent
of the second stations weekly broadcast programming. However, local marketing agreements entered into prior to November 5, 1996 are exempt attributable interests until the FCC determines otherwise. This grandfathered period,
when reviewed by the FCC, is subject to possible extension or termination.

In addition, the FCC has initiated proceedings to determine
whether to make TV joint sales agreements attributable interests under its ownership rules.

In certain of our markets, we own and operate
both full-power and low-power television broadcast stations (in Wichita Falls, we own and operate KJTL and KJBO-LP; and in Amarillo, we own and operate KCIT and KCPN-LP). The FCCs duopoly rules and policies regarding ownership of television
stations in the same market apply only to full-power television stations and not low-power television stations such as KJBO-LP and KCPN-LP.

We currently do not operate any stations that meet the 2003 modified local duopoly rule (or the 1999 duopoly rule) that allows us to own two stations in the same market.

National Ownership. There is no nationwide limit on the number of television stations which a party may own. However, the FCCs rules
limit the percentage of U.S. television households which a party may reach through its attributable interests in television stations. This rule provides that when calculating a partys nationwide aggregate audience coverage, the ownership of a
UHF station is counted as 50 percent of a markets percentage of total national audience. In 2004, Congress determined that one party may have an attributable interest in television stations which reach, in the aggregate, 39 percent of all U.S.
television households; and the FCC thereafter modified its corresponding rule. The FCC currently is considering whether this act has any impact on the FCCs authority to examine and modify the UHF discount.

Missions stations have a combined national audience reach of 1.5 percent of television households with the UHF discount.

Radio/Television Cross-Ownership Rule (One-to-a-Market Rule).In markets with at least 20 independently owned media outlets, ownership of one
television station and up to seven radio stations, or two television stations (if allowed under the television duopoly rule) and six radio stations is permitted. If the number of independently owned media outlets is fewer than 20 but greater than or
equal to 10, ownership of one television station (or two if allowed) and four radio stations is permitted. In markets with fewer than 10 independent media voices, ownership of one television station (or two if allowed) and one radio station is
permitted. In calculating the number of independent media voices in a market, the FCC includes all radio and television stations, independently owned cable systems (counted as one voice), and independently owned daily newspapers which have
circulation that exceeds five percent of the households in the market.

Local Television/Newspaper Cross-Ownership
Rule.Under this rule, a party is prohibited from having an attributable interest in a television station and a daily newspaper if the television stations Grade A analog (NTSC) signal contour encompasses the entire community in which
the newspaper is published.

Cross-Media Ownership. On June 2, 2003, the FCC voted to eliminate its
Radio/Television Cross-Ownership Rule and its Local Television/Newspaper Cross-Ownership Rule, replacing both with a new single cross-media ownership rule, which would permit media cross-ownership based on the number of television stations in a
market. However, on September 3, 2003, a three-judge panel of the U.S. Court of Appeals for the Third Circuit stayed the effectiveness of the new rule and on June 24, 2004, the Court remanded this rule back to the FCC for further
consideration. The proposed cross media rule is also subject to petitions for reconsideration at the FCC and to Congressional review and potential modification. So long as the proposed cross media ownership rule is stayed, or in the event that it is
repealed or vacated, the current Radio/Television Cross-Ownership Rule and Local Television/Newspaper Cross-Ownership Rule continue to govern common ownership of radio and television stations in the same market.



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##### Index to Financial Statements

Local Television/Cable Cross-Ownership.There is no FCC rule prohibiting cross-ownership of a
cable television system and a television broadcast station in the same area.

Cable Must-Carry or Retransmission
Consent Rights.Every three years television broadcasters are required to make an election between must-carry or retransmission consent rights in connection with the carriage of their analog signal on cable television systems
within their DMA. For a majority of our stations, the most recent election was made October 1, 2005, and is effective for the three-year period that began January 1, 2006. The next election date is October 1, 2008, for the three-year
period beginning January 1, 2009.

If a broadcaster chooses to exercise its must-carry rights, it may request cable system carriage on
its over-the-air channel or another channel on which it was carried on the cable system as of a specified date. A cable system generally must carry the stations signal in compliance with the stations carriage request, and in a manner
that makes the signal available to all cable subscribers. However, must-carry rights are not absolute, and whether a cable system is required to carry the station on its system, or in the specific manner requested, depends on variables such as the
location, size and number of activated channels of the cable system and whether the stations programming duplicates, or substantially duplicates the programming of another station carried on the cable system. If certain conditions are met, a
cable system may decline to carry a television station that has elected must-carry status, although it is unusual for all the required conditions to exist.

If a broadcaster chooses to exercise its retransmission consent rights, a cable television system which is subject to that election may not carry the stations signal without the stations consent. This
generally requires the cable system and television station operator to negotiate the terms under which the broadcaster will consent to the cable systems carriage of its stations signal.

We have elected to exercise retransmission consent rights for all of our stations where we have a legal right to do so. We have negotiated retransmission
consent agreements with substantially all of the cable systems which carry our stations signals.

Direct-to-Home Satellite
Services and Carriage Rights. In November 2004, Congress enacted the Satellite Home Viewer Extension and Reauthorization Act (SHVERA) allowing direct broadcast satellite providers to continue carrying local channels and
extending the requirement that direct broadcast satellite services such as DirecTV and EchoStar carry, upon request, the signals of all local television stations in a DMA in which the satellite service provider is carrying at least one local
television stations signal. SHVERA also permits satellite providers to carry significantly viewed out-of-market stations when local-into-local service is provided and permits the continued carriage of network service from a station
outside a local market to subscribers in the market who are unserved by a local station affiliated with the same network under certain circumstances. Unserved generally refers to a satellite subscriber who is unable, using a conventional
outdoor rooftop antenna, to receive a Grade B signal of a local network affiliated station. If a subscriber is able to receive a Grade B quality signal from a local network affiliate then, subject to certain exceptions, the subscriber is
not eligible to receive that networks programming from an out-of-market affiliate carried on the satellite service. SHVERA also allows subscribers who were not receiving a digital signal as of December 8, 2004 to receive distant signals
for digital television programming if the subscriber is receiving the local analog signal and the subscriber cannot receive a local digital signal over-the-air.

Satellite carriers that provide any local-into-local service in a market must carry, upon request, all stations in that market that have elected mandatory carriage, and DBS operators are now carrying other local
stations in local-into-local markets, including some noncommercial, independent and foreign language stations. However, satellite carriers are not required to carry duplicative network signals from a local market unless the stations are licensed to
different communities in different states. Satellite carriers are required to carry all local television stations in a contiguous manner on their channel line-up and may not discriminate in their carriage of stations.

Commercial television stations make elections between retransmission consent and must-carry status for satellite services on the same schedule as cable
elections, with the most recent elections made by October 1, 2005 for the three year period that began on January 1, 2006. DirecTV currently provides satellite carriage of our stations in the Springfield and Wilkes Barre-Scranton markets.
EchoStar currently provides satellite carriage of our stations in the Abilene-Sweetwater, Amarillo, Billings, Erie, Joplin, MO-Pittsburg, KS, Lubbock, Rockford, San Angelo, Springfield, Terre Haute, Wichita Falls, TX-Lawton, OK and Wilkes
Barre-Scranton markets. We have long-term carriage agreements with both DirecTV and EchoStar that provide for the carriage of the currently carried stations, as well as those subsequently added in new local-to-local markets, or those added by
acquisition or other means.

Digital Television (DTV). The DTV transmission system delivers video and audio signals
of higher quality (including high definition television) than the existing analog transmission system. DTV also has substantial capabilities for multiplexing (the broadcast of several programs concurrently) and data transmission. For each licensed
television station the FCC allocated a DTV channel which is different from the stations analog channel. In general, the DTV channels assigned to television stations are intended to provide stations with DTV coverage areas that replicate their
analog coverage areas. However, there are a number of variables which will ultimately determine the extent to which a stations DTV operation will provide such replication. Under certain circumstances, a stations DTV operation may cover
less geographic area than the stations current analog signal. The introduction of digital television will require consumers to purchase new televisions that are capable of receiving and displaying DTV signals, or adapters to receive DTV
signals and convert them to an analog signal for display on their existing receivers.



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Stations were required to construct digital facilities according to a schedule set by Congress and the
FCC based on the type of station and the size of market the station is located in. Stations may broadcast with both analog and DTV signals until February 17, 2009 when the FCC will reclaim one of the channels and each broadcaster will operate
on a single DTV channel. Beginning April 1, 2005, stations were required to simulcast 100% of its analog programming on its DTV channel.

On August 4, 2004, the FCC released rules setting the dates by which all television stations must be broadcasting a full-power DTV signal. Under these rules, stations affiliated with the four largest networks in the top-100 markets
were required to construct full-power DTV facilities by July 1, 2005. All other stations are required to construct full-power DTV facilities by July 1, 2006. Stations that fail to meet these build-out deadlines, and who have not requested
an extension of time from the FCC, will lose interference protection for their signals outside their low-power coverage areas.

Channels
now used for analog broadcasts range from 2 through 69. The FCC designated Channels 2 through 51 as the core channels which will be used for DTV broadcasts. However, because of the limited number of available core DTV channels currently
available, the FCC assigned many stations DTV channels above Channel 51 (Channels 52 through 69) for use during the transition from simultaneous digital and analog transmission to DTV-only operations. At the end of the transition these stations will
have to change their DTV operation to one of the DTV core channels. This has created three categories of television stations with respect to analog and DTV channel assignments: (1) stations with both their analog and DTV channels within the
core channels; (2) stations with either an analog or DTV channel inside the core and the other outside the core; and (3) stations with both their analog and DTV channels outside the core. All of our stations currently fall within the first
or second group. Only one of our stations has its DTV assignment outside the core. We do not operate any stations for which both the analog and DTV channels are outside the core.

Television station operators may use their DTV signals to provide ancillary services, such as computer software distribution, internet, interactive
materials, e-commerce, paging services, audio signals, subscription video, or data transmission services. To the extent a station provides such ancillary services it is subject to the same regulations as are applicable to other analogous services
under the FCCs rules and policies. Commercial television stations also are required to pay the FCC 5% of the gross revenue derived from all ancillary services provided over their DTV signals for which a station received a fee in exchange for
the service or received compensation from a third party in exchange for transmission of material from that third party, not including commercial advertisements used to support broadcasting.

DTV Channel Election. On August 4, 2004, the FCC adopted a multi-step channel election process to determine the final DTV
channel allotment for every television station. On February 10, 2005, station operators with both their analog and DTV channels inside the core were required to select which of their assigned channels they intend to use for permanent DTV
operations. Our stations with only one channel in the 2-51 range (WFXP and KOLR) were required to select a permanent channel or defer a permanent channel selection until the second round. All of our stations made a permanent channel election in the
first or second round of the election process.

DTV MVPD Carriage.Stations may choose must-carry status or retransmission
consent for their analog signals, but only retransmission consent for their digital signals. Stations do not have the right to assert must-carry rights for both their analog and DTV signals or to assert must-carry rights for their DTV signals in
lieu of analog carriage. If a television station operates only as a DTV station, or returns its analog channel to the FCC and converts to digital-only operations, it may assert must-carry rights for its DTV signal. Digital television signals carried
on a cable system must be available to subscribers on the systems basic service tier.

With respect to direct-to-the-home satellite
service providers, the FCC will address DTV carriage at a later time.

The exercise of must-carry rights by a digital-only television
station for its DTV signal applies only to a single programming stream and other program-related content. If a television station is concurrently broadcasting more than one program stream on its DTV signal it may select which program stream is
subject to its must-carry election. Cable systems and DBS providers are not required to carry internet, e-commerce or other ancillary services provided over DTV signals if those services are not related to the stations primary video
programming carried on the cable system and if they are not provided to viewers for free.

Programming and Operation. The
Communications Act requires broadcasters to serve the public interest. Since the late 1970s, the FCC gradually has relaxed or eliminated many of the more formalized procedures it had developed to promote the broadcast of certain types of
programming responsive to the needs of a stations community of license. However, television station licensees are still required to present programming that is responsive to community problems, needs and interests and to maintain certain
records demonstrating such responsiveness. The FCC may consider complaints from viewers concerning programming when it evaluates a stations license renewal application, although viewer complaints also may be filed and considered by the FCC at
any time. Stations also must follow various rules promulgated under the Communications Act that regulate, among other things:



| |  |  | political advertising (its price and availability);
| | - |  | ---------------------------------------------------



| |  |  | sponsorship identification;
| | - |  | ---------------------------



| |  |  | contest and lottery advertising;
| | - |  | --------------------------------



| |  |  | obscene and indecent broadcasts;
| | - |  | --------------------------------



13



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##### Index to Financial Statements

| |  |  | technical operations, including limits on radio frequency radiation;
| | - |  | --------------------------------------------------------------------



| |  |  | ratings guidelines; and
| | - |  | -----------------------



| |  |  | network affiliation agreements.
| | - |  | -------------------------------

The FCCs EEO rules
require broadcasters to provide broad outreach for all full-time (greater than 30 hours per week) job vacancies. In addition, broadcasters must engage in long-term recruitment initiatives over each two-year period. Broadcasters must retain
documentation with respect to their EEO activities and file periodic reports with the FCC. Broadcasters also are subject to random audits to ensure compliance with the FCCs EEO rules and can be sanctioned for noncompliance.

The FCC now requires broadcasters to caption one hundred percent of the programming broadcast on their stations, subject to certain limited exceptions,
including permitting non-real time captioning for local news. In July 2005, the FCC initiated a proceeding to determine whether to require real time captioning of all programming broadcast by a television station, including local news. Comments and
reply comments have been submitted in this proceeding; however, the FCC has not yet issued a decision in this proceeding.

Employees

As of December 31, 2005, we had a total of 29 employees, comprised of 27 full-time employees and 2 part-time employees. As of December 31, 2005,
none of our employees are covered by a collective bargaining agreement. We believe that our employee relations are satisfactory, and we have not experienced any work stoppages at any of our facilities.

Item 1A. Risk Factors

You should carefully consider the following risk factors, which we believe are
all of the significant risks related to our business, as well as the other information contained in this document.

Risks Related to Our Operations

Our substantial debt could limit our ability to grow and compete.

As of December 31, 2005, we had $172.3 million of debt which represented 206.9% of our total capitalization. Our high level of debt could have
important consequences to our business. For example, it could:



| |  |  | limit our ability to borrow additional funds or obtain additional financing in the future;
| | - |  | ------------------------------------------------------------------------------------------



| |  |  | limit our ability to pursue acquisition opportunities;
| | - |  | ------------------------------------------------------



| |  |  | expose us to greater interest rate risk since the interest rate on borrowings under our senior credit facility is variable;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------



| |  |  | limit our flexibility to plan for and react to changes in our business and our industry; and
| | - |  | --------------------------------------------------------------------------------------------



| |  |  | impair our ability to withstand a general downturn in our business and place us at a disadvantage compared to our competitors that are less leveraged.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------

Refer to Part II, Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations, Contractual
Obligations for disclosure of approximate aggregate amount of principal indebtedness scheduled to mature.

We could also incur
additional debt in the future. The terms of our senior credit facility limit, but do not prohibit us from incurring substantial amounts of additional debt. To the extent we incur additional debt, we would become even more susceptible to the
leverage-related risks described above.

The agreement governing our debt contains various covenants that limit our managements discretion in
the operation of our business.

Our senior credit facility contains various covenants that restrict our ability to, among other
things:



| |  |  | incur additional debt and issue preferred stock;
| | - |  | ------------------------------------------------



| |  |  | pay dividends and make other distributions;
| | - |  | -------------------------------------------



| |  |  | make investments and other restricted payments;
| | - |  | -----------------------------------------------



| |  |  | merge, consolidate or transfer all or substantially all of our assets;
| | - |  | ----------------------------------------------------------------------



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##### Index to Financial Statements

| |  |  | enter into sale and leaseback transactions;
| | - |  | -------------------------------------------



| |  |  | create liens;
| | - |  | -------------



| |  |  | sell assets or stock of our subsidiaries; and
| | - |  | ---------------------------------------------



| |  |  | enter into transactions with affiliates.
| | - |  | ----------------------------------------

Our bank credit
facility agreement does not contain financial covenant ratio requirements, but does provide for default in the event Nexstar does not adequately comply with all covenants contained in its credit agreement. Future financing agreements may contain
financial covenants which could limit our managements ability to operate our business at its discretion, and consequently we may be unable to compete effectively, pursue acquisitions or take advantage of new business opportunities, any of
which could harm our business.

If we fail to comply with the restrictions in present or future financing agreements, a default may occur.
A default could allow creditors to accelerate the related debt as well as any other debt to which a cross-acceleration or cross-default provision applies. A default could also allow creditors to foreclose on any collateral securing such debt.

We guarantee the aggregate principal amount of $200.0 million of Senior Subordinated Notes and the aggregate principal amount of $175.4 million of
outstanding bank facility term loans issued or drawn by Nexstar Broadcasting, Inc.

If Nexstar, which is highly leveraged with debt,
is unable to meet its obligations under the indenture governing its senior subordinated notes or its senior credit facility agreement, we can be held liable for those obligations under guarantees. Additionally, Nexstar has $50.0 million unused
revolver commitments available under its senior credit facility, which is also guaranteed by us.

Our broadcast operations could be adversely
affected if our stations fail to maintain or renew their network affiliation agreements on favorable terms, or at all.

Due to the
quality of the programming provided by the networks, stations that are affiliated with a network generally have higher ratings than unaffiliated independent stations in the same market. As a result, it is important for stations to maintain their
network affiliations. Except for KCPN-LP, all of the stations we operate have network affiliation agreementstwo stations have primary affiliation agreements with NBC, two with CBS, four with ABC, five with Fox and one with UPN. Each of NBC,
CBS and ABC generally provides affiliated stations with up to 22 hours of prime time programming per week, while each of Fox and UPN provides affiliated stations with up to 15 hours of prime time programming per week. In return, affiliated stations
broadcast the respective networks commercials during the network programming. Under the affiliation agreements with NBC, CBS and ABC, most of the stations we operate also receive compensation from these networks.

All of the network affiliation agreements of the stations that we own and operate are scheduled to expire at various times beginning in June 2006 through
June 2013. Network affiliation agreements are also subject to earlier termination by the networks under limited circumstances. For more information regarding these network affiliation agreements, see BusinessNetwork Affiliations.

On January 24, 2006, the owners of UPN and WB announced the two television networks will merge to form a new network called The CW.
We operate one UPN affiliated station located in Wichita Falls, Texas. We do not believe a loss of this stations network affiliation agreement would have a material impact on our revenue.

The FCC could decide not to grant renewal of the FCC license of any of the stations we operate which would require that station to cease operations.

Television broadcast licenses are granted for a maximum term of eight years and are subject to renewal upon application to the FCC.
The FCC is required to grant an application for license renewal if during the preceding term the station served the public interest, the licensee did not commit any serious violations of the Communications Act or the FCCs rules, and the
licensee committed no other violations of the Communications Act or the FCCs rules which, taken together, would constitute a pattern of abuse. A majority of renewal applications are routinely granted under this standard. If a licensee fails to
meet this standard the FCC may still grant renewal on terms and conditions that it deems appropriate, including a monetary forfeiture or renewal for a term less than the normal eight-year period.

On January 3, 2006, Cable America Corporation submitted a Petition to Deny the applications for renewal of license for Nexstars station, KSFX,
and our station, KOLR, both licensed to Springfield, Missouri. Cable America has alleged that Nexstars local service agreement arrangements with us give Nexstar improper control over our operations. We and Nexstar submitted a joint opposition
to this Petition to Deny and Cable America submitted a reply.

We began to submit renewal of license applications for our stations
beginning in April 2005 and will continue to do so through April 2007. We expect the FCC to renew the licenses for our stations in due course.



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##### Index to Financial Statements

Our growth may be limited if we are unable to implement our acquisition strategy.

We intend to continue our growth by selectively pursuing acquisitions of television stations. The television broadcast industry is undergoing
consolidation, which may reduce the number of acquisition targets and increase the purchase price of future acquisitions. Some of our competitors may have greater financial or management resources with which to pursue acquisition targets. Therefore,
even if we are successful in identifying attractive acquisition targets, we may face considerable competition and our acquisition strategy may not be successful.

FCC rules and policies may also make it more difficult for us to acquire or enter into local service agreements with additional television stations. Television station acquisitions are subject to the approval of the
FCC and, potentially, other regulatory authorities. The need for FCC and other regulatory approvals could restrict our ability to consummate future transactions if, for example, the FCC or other government agencies believe that a proposed
transaction would result in excessive concentration in a market, even if the proposed combinations may otherwise comply with FCC ownership limitations.

Growing our business through acquisitions involves risks and if we are unable to manage effectively our rapid growth, our operating results will suffer.

We have experienced rapid growth. Since January 1, 2003, we have more than doubled the number of stations that we operate, having
acquired 10 stations. We will continue to actively pursue additional acquisition opportunities. To manage effectively our growth and address the increased reporting requirements and administrative demands that will result from future acquisitions,
we will need, among other things, to continue to develop our financial and management controls and management information systems. We will also need to continue to identify, attract and retain highly skilled finance and management personnel. Failure
to do any of these tasks in an efficient and timely manner could seriously harm our business.

There are other risks associated with
growing our business through acquisitions. For example, with any past or future acquisition, there is the possibility that:



| |  |  | we may not be able to successfully reduce costs, increase advertising revenue or audience share or realize anticipated synergies and economies of scale with respect to any acquired
station;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | an acquisition may increase our leverage and debt service requirements or may result in our assuming unexpected liabilities;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | our management may be reassigned from overseeing existing operations by the need to integrate the acquired business;
| | - |  | --------------------------------------------------------------------------------------------------------------------



| |  |  | we may experience difficulties integrating operations and systems, as well as, company policies and cultures;
| | - |  | -------------------------------------------------------------------------------------------------------------



| |  |  | we may fail to retain and assimilate employees of the acquired business; and
| | - |  | ----------------------------------------------------------------------------



| |  |  | problems may arise in entering new markets in which we have little or no experience.
| | - |  | ------------------------------------------------------------------------------------

The occurrence of any of these events could have a material adverse effect on our operating results, particularly during the period immediately following any acquisition.

The FCC may decide to terminate grandfathered time brokerage agreements.

The FCC currently attributes toward the local television ownership limits in-market stations when one station owner programs a second in-market station
pursuant to a time brokerage agreement or local marketing agreement (TBA), if the programmer provides more than 15 percent of the second stations weekly broadcast programming. However, TBAs entered into prior to November 5,
1996 are exempt attributable interests for now.

The FCC will review these grandfathered TBAs in the future. During this
review, the FCC may determine to terminate the grandfathered period and make all TBAs fully attributable to the programmer. If the FCC does so, we will be required to terminate the TBAs with Nexstar for stations WFXP and KHMT, unless the
FCC simultaneously changes its duopoly rules to allow ownership of two stations in the applicable markets.



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##### Index to Financial Statements

Failure to construct full-power DTV facilities may lead to a loss of station coverage area or other FCC sanctions.

FCC regulations required all commercial television stations in the United States to commence digital operations on a schedule
determined by the FCC and Congress, in addition to continuing their analog operations. All of the television stations we own and operate are broadcasting at least a low-power digital television signal and three television stations (WYOU, WUTR and
WTVO) are broadcasting a full-power digital television signal.

Digital transmissions were initially permitted to be low-power, but
full-power transmission was required by July 1, 2005 for stations affiliated with the four largest networks (ABC, CBS, NBC and Fox) in the top one hundred markets and is required by July 1, 2006 for all other stations.

We have filed a request for extension of time to construct full-power DTV facilities for our top four affiliates in the top one hundred market stations.
The FCC has not yet acted on this request for extension of time. For each of the stations we own and operate that do not obtain an extension of time and are not broadcasting a full-power digital signal by the deadlines set by the FCC, such station
may lose its interference protection, which could have a material adverse effect on the station.

FCC actions may restrict our ability to enter into
local service agreements with Nexstar, which would harm our operations.

We have entered into local service agreements with
Nexstar for our stations. While all of our existing local service agreements comply with FCC rules and policies, we cannot assure you that the FCC will continue to permit local service agreements as a means of creating substantial operating
efficiencies, or that the FCC will not challenge our existing arrangements with Nexstar in the future. On August 2, 2004, the FCC initiated a rule making proceeding to determine whether to make TV joint sales agreements attributable under its
ownership rules. Comments and reply comments were filed in this proceeding in the fourth quarter of 2004. The FCC has not yet issued a decision in this proceeding. However, if the FCC adopts a JSA attribution rule for TV stations we will be required
to comply with the rule.

Cable America Corporation has alleged that Nexstars local service agreements with us
give Nexstar improper control over our operations. On January 3, 2006, Cable America Corporation submitted a Petition to Deny the applications for renewal of license for Nexstars station, KSFX, and our station, KOLR, both licensed to
Springfield, Missouri. We and Nexstar submitted a joint opposition to this Petition to Deny and Cable America submitted a reply. If the FCC challenges our existing arrangements with Nexstar and determines that our arrangements violate the FCCs
rules or policies, we may be required to terminate such arrangements and we could be subject to sanctions, fines and/or other penalties.

We have a history of net losses.

We had net losses of $9.2 million, $5.5 million and $13.2 million, respectively,
for the years ended December 31, 2005, 2004 and 2003. We may not be able to achieve or maintain profitability.

We have a material amount of
goodwill and intangible assets, therefore we could suffer losses due to future asset impairment charges.

As of December 31,
2005, approximately $93.0 million, or 77.6%, of our total assets consisted of goodwill and intangible assets, including FCC licenses and network affiliation agreements. We test goodwill and FCC licenses annually, and on an interim date if factors or
indicators become apparent that would require an interim test of these assets, in accordance with Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets. We test network affiliation agreements
whenever circumstances or indicators become apparent the asset may not be recoverable through expected future cash flows. The methods used to evaluate the impairment of the of the Companys goodwill and intangible assets would be affected by a
significant reduction in operating results or cash flows at one or more of the Companys television stations, or a forecast of such reductions, a significant adverse change in the advertising marketplaces in which the Companys television
stations operate, the loss of network affiliations, or by adverse changes to FCC ownership rules, among others, which may be beyond our control. If the carrying amount of goodwill and intangibles assets is revised downward due to impairment, such
non-cash charge could materially affect the Companys financial position and results of operations.

On January 24, 2006, the
owners of UPN and WB announced that the two television networks will merge to form a new network called The CW. We operate one UPN affiliated station located in Wichita Falls, Texas. We are currently evaluating the impact the merger will have on our
financial position and results of operations.



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##### Index to Financial Statements

Risks Related to Our Industry

Preemption of regularly scheduled programming by network news coverage may affect our revenue and results of operations.

We may experience a loss of advertising revenue and incur additional broadcasting expenses due to preemption of our regularly scheduled programming by network coverage of a major global news event such as a war or terrorist attack. As a
result, advertising may not be aired and the revenue for such advertising may be lost unless the broadcasting station is able to run the advertising at agreed-upon times in the future. There can be no assurance that advertisers will agree to run
such advertising in future time periods or that space will be available for such advertising. We cannot predict the duration of such preemption of local programming if it occurs. In addition, our stations may incur additional expenses as a result of
expanded news coverage of the local impact of a war or terrorist attack. The loss of revenue and increased expenses could negatively affect our results of operations.

The industry-wide mandatory conversion to digital television will require us to make significant capital expenditures without assurance that we will remain competitive with other developing technologies.

It will be expensive to convert from the current analog broadcast format to the digital broadcast format. This conversion required
an average initial capital expenditure of approximately $0.2 million per station for low-power transmission of digital signal programming, and we estimate that it will require an average additional capital expenditure of approximately $1.5 million
per station (for 10 stations) to modify our stations DTV transmitters for full-power digital signal transmission, including costs for the transmitter, transmission line, antenna and installation, and estimated costs for tower upgrades and/or
modifications. Digital conversion expenditures were $0.8 million and $32 thousand, respectively, for the years ended December 31, 2005 and 2004. Stations that fail to meet the FCCs build-out deadlines, and that have not received an
extension of time from the FCC, will lose interference protection for their signals outside their low-power coverage areas. As of December 31, 2005, our stations WUTR, WTVO and WYOU are transmitting full-power digital signals.

Since digital technology allows broadcasting of multiple channels within the additional allocated spectrum, this technology could expose us to additional
competition from programming alternatives. Technological advancements and the resulting increase in programming alternatives such as cable television, DBS systems, pay-per-view, home video and entertainment systems, video-on-demand and the Internet,
have created new types of competition to television broadcast stations and will also increase competition for household audiences and advertisers.

If direct broadcast satellite companies do not carry the stations that we own and operate, we could lose audience share and revenue.

The Satellite Home Viewer Extension and Reauthorization Act allows direct broadcast satellite television companies to continue to transmit local broadcast television signals to subscribers in local markets provided
that they offer to carry all local stations in that market. However, satellite providers have limited satellite capacity to deliver local station signals in local markets. Satellite providers, such as DirecTV and EchoStar, carry our stations in only
some of our markets and may choose not to carry local stations in any of our other markets. DirecTV currently provides satellite carriage of our stations in the Springfield and Wilkes Barre-Scranton markets. EchoStar currently provides satellite
carriage of our stations only in the Abilene-Sweetwater, Amarillo, Billings, Erie, Joplin, MO-Pittsburg, KS, Lubbock, Rockford, San Angelo, Springfield, Terre Haute, Wichita Falls, TX-Lawton, OK and Wilkes Barre-Scranton markets. In those markets in
which the satellite providers do not carry local station signals, subscribers to those satellite services are unable to view local stations without making further arrangements, such as installing antennas and switches. Furthermore, when direct
broadcast satellite companies do carry local television stations in a market, they are permitted to charge subscribers extra for such service. Some subscribers may choose not to pay extra to receive local television stations. In the event
subscribers to satellite services do not receive the stations that we own and operate, we could lose audience share which would adversely affect our revenue and earnings.

If we are unable to reach retransmission consent agreements with cable companies for the carriage of our stations signals, we could lose audience share and revenue.

The Communications Act grants television broadcasters retransmission consent rights in connection with the carriage of their stations signal by
cable companies. If a broadcaster chooses to exercise retransmission consent rights, a cable television system which is subject to that election may not carry a stations signal without the broadcasters consent. This generally requires
the cable system operator and the television broadcaster to negotiate the terms under which the broadcaster will consent to the cable systems carriage of its stations signal. We have elected to exercise retransmission consent rights for
all of our stations where we have a legal right to do so. We have negotiated retransmission consent agreements with substantially all of the cable systems which carry the stations signals.



18



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##### Index to Financial Statements

The FCC can sanction us for programming broadcast on our stations which it finds to be indecent.

In 2004, the FCC imposed substantial fines on television broadcasters for the broadcast of indecent material in violation of the
Communications Act and its rules. The FCC also revised its indecency review analysis to more strictly prohibit the use of certain language on broadcast television. Because our stations programming is in large-part comprised of programming
provided by the networks with which the stations are affiliated, we do not have full control over what is broadcast on our stations, and we may be subject to the imposition of fines if the FCC finds such programming to be indecent.

In addition, Congress currently is considering legislation that will substantially increase the maximum amount the FCC can fine broadcasters for the
broadcast of indecent programming and may consider permitting the FCC to institute license revocation proceedings against any station which repeatedly violates the indecency regulations.

Intense competition in the television industry could limit our growth and impair our ability to become profitable.

As a television broadcasting company, we face a significant level of competition, both directly and indirectly. Generally we compete for our audience against all the other leisure activities in which one could choose
to engage in rather than watch television. Specifically, stations we own compete for audience share, programming and advertising revenue with other television stations in their respective markets and with other advertising media, including
newspapers, radio stations, cable television, DBS systems and the Internet.

The entertainment industry, and particularly the television
industry, is highly competitive and is undergoing a period of consolidation. Many of our current and potential competitors have greater financial, marketing, programming and broadcasting resources than we do. The markets in which we operate are also
in a constant state of change arising from, among other things, technological improvements and economic and regulatory developments. Technological innovation and the resulting proliferation of television entertainment, such as cable television,
wireless cable, satellite-to-home distribution services, pay-per-view and home video and entertainment systems, have fractionalized television viewing audiences and have subjected free over-the-air television broadcast stations to increased
competition. We may not be able to compete effectively or adjust our business plans to meet changing market conditions. We are unable to predict what form of competition will develop in the future, the extent of the competition or its possible
effects on our businesses.

In addition, on February 19, 2002, the U.S. Court of Appeals for the D.C. Circuit directed the FCC to
repeal in its entirety the local television/cable cross-ownership rule, which prohibits any cable television system from carrying the signal of any television broadcast station with a predicted service area that overlaps, in whole or in part, the
cable systems service area, if the cable system (or any of its attributable principals) has an attributable interest in the television station. As a result of such repeal, cable systems and co-located television stations now may be
commonly-owned. This means that the operator of a cable system that carries one of the stations we own could become the owner of a competing station in the market.

On June 2, 2003, the FCC eliminated its radio/television cross-ownership rule and its local television/newspaper cross-ownership rule, replacing both with a new single cross media ownership rule. Under this new
rule, a daily newspaper, under certain circumstances, may be able to own a television station in the same market. This means that the owner of a local newspaper could become the owner of a competing station in the market. However, this rule did not
become effective and, on June 24, 2004, a three-judge panel of the U.S. Court of Appeals for the Third Circuit remanded the rule back to the FCC for further consideration. For more information about this rule, which also remains subject to
petitions for reconsideration at the FCC and Congressional review and modification, see BusinessFederal Regulation of Television BroadcastingCross Media Ownership.

The FCC could implement legislation and/or regulations that might have a significant impact on the operations of the stations we own and operate or the television
broadcasting industry as a whole.

The FCCs ongoing rule making proceeding concerning implementation of the transition from
analog to digital television broadcasts is likely to have a significant impact on the television industry and the operation of our stations and the stations we provide services to. The FCC has initiated proceedings to determine whether to make TV
joint sales agreements attributable interests under its ownership rules and to determine whether it should establish formal rules under which broadcasters will be required to serve the local public interest. In addition, the FCC may decide to
initiate other new rule making proceedings, on its own or in response to requests from outside parties, any of which might have such an impact. Congress also may act to amend the Communications Act in a manner that could impact our stations and the
stations we provide services to or the television broadcast industry in general.

Item 1B. Unresolved Staff Comments

Not applicable.



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##### Index to Financial Statements

Item 2. Properties

We own and lease facilities in the following locations:



|                                          |  |                 |  |                                         |  |                    
|----------------------------------------- |  | --------------- |  | --------------------------------------- |  | -------------------
|Station Metropolitan Area and Use         |  | Owned or Leased |  | Square Footage/Acreage Approximate Size |  | Expiration of Lease
|WYOUWilkes Barre-Scranton, PA            |  |                 |  |                                         |  |                    
|Office-Studio(1)                          |  |                |  |                                        |  |                   
|Tower/Transmitter SitePenobscot Mountain |  | 100% Owned      |  | 120.33 Acres                            |  |                   
|Tower/Transmitter SiteBald Mountain      |  | 100% Owned      |  | 7.2 Acres                               |  |                   
|Tower/Transmitter SiteWilliamsport       |  | 33% Owned       |  | 1.35 Acres                              |  |                   
|Tower/Transmitter SiteSharp Mountain     |  | 33% Owned       |  | 0.23 Acres                              |  |                   
|Tower/Transmitter SiteStroudsburg        |  | Leased          |  | 10,000 Sq. Ft.                          |  | Month to Month     
|                                          |  |                 | 
|WFXW(2)Terre Haute, IN                   |  |                 |  |                                         |  |                    
|Office-Studio(3)                          |  |                |  |                                        |  |                   
|Tower/Transmitter Site                    |  | 100% Owned      |  | 1 Acre                                  |  |                   
|                                          |  |                 | 
|WFXPErie, PA                             |  |                 |  |                                         |  |                    
|Office-Studio(4)                          |  |                |  |                                        |  |                   
|Tower/Transmitter Site                    |  | Leased          |  | 1 Sq. Ft.                               |  | 6/30/09            
|                                          |  |                 | 
|KJTLWichita Falls, TXLawton, OK         |  |                 |  |                                         |  |                    
|Office-Studio(5)                          |  |                |  |                                        |  |                   
|Tower/Transmitter Site                    |  | Leased          |  | 40 Acres                                |  | 1/30/15            
|                                          |  |                 | 
|KJBO-LPWichita Falls, TX-Lawton, OK      |  |                 |  |                                         |  |                    
|Office-Studio(5)                          |  |                |  |                                        |  |                   
|Tower/Transmitter Site                    |  | Leased          |  | 5 Acres                                 |  | Year to Year       
|                                          |  |                 | 
|KODEJoplin, MO-Pittsburg, KS             |  |                 |  |                                         |  |                    
|Office-Studio                             |  | 100% Owned      |  | 2.74 Acres                              |  |                   
|Tower/Transmitter Site                    |  | Leased          |  | 215 Sq. Ft.                             |  | 5/1/27             
|                                          |  |                 | 
|KRBCAbilene-Sweetwater, TX               |  |                 |  |                                         |  |                    
|Office-Studio                             |  | 100% Owned      |  | 5.42 Acres                              |  |                   
|Office-Studio                             |  | 100% Owned      |  | 19,312 Sq. Ft.                          |  |                   
|Tower/Transmitter Site                    |  | 100% Owned      |  | 12.78 Acres                             |  |                   
|                                          |  |                 | 
|KSANSan Angelo, TX                       |  |                 |  |                                         |  |                    
|Office-Studio(6)                          |  |                |  |                                        |  |                   
|Tower/Transmitter Site                    |  | Leased          |  | 10 Acres                                |  | 5/15/09            
|                                          |  |                 | 
|KOLRSpringfield, MO                      |  |                 |  |                                         |  |                    
|Office-Studio                             |  | 100% Owned      |  | 30,000 Sq. Ft.                          |  |                   
|Office-Studio                             |  | 100% Owned      |  | 7 Acres                                 |  |                   
|Tower/Transmitter Site                    |  | Leased          |  | 0.5 Acres                               |  | 5/12/21            
|                                          |  |                 | 
|KCIT/KCPN-LPAmarillo, TX                 |  |                 |  |                                         |  |                    
|Office-Studio(7)                          |  |                |  |                                        |  |                   
|Tower/Transmitter Site                    |  | Leased          |  | 100 Acres                               |  | 5/12/21            
|Tower/Transmitter SiteParmer County, TX  |  | Leased          |  | 80 Sq. Ft.                              |  | 5/31/06            
|Tower/Transmitter SiteGuyman, OK         |  | Leased          |  | 80 Sq. Ft.                              |  | Month to Month     
|                                          |  |                 | 
|KAMCLubbock, TX                          |  |                 |  |                                         |  |                    
|Office-Studio(8)                          |  |                |  |                                        |  |                   
|Tower/Transmitter Site                    |  | Leased          |  | 790 Sq. Ft.                             |  | 5/12/21            
|Tower/Transmitter Site                    |  | Leased          |  | 4,316 Sq. Ft.                           |  | 9/1/12             
|                                          |  |                 | 
|KHMTBillings, MT                         |  |                 |  |                                         |  |                    
|Office-Studio(9)                          |  |                |  |                                        |  |                   
|Tower/Transmitter Site                    |  | Leased          |  | 4 Acres                                 |  | 5/12/21            



20



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##### Table of Contents

##### Index to Financial Statements

|                                     |  |                 |  |                                         |  |                    
|------------------------------------ |  | --------------- |  | --------------------------------------- |  | -------------------
|Station Metropolitan Area and Use    |  | Owned or Leased |  | Square Footage/Acreage Approximate Size |  | Expiration of Lease
|WUTRUtica, NY                       |  |                 |  |                                         |  |                    
|Office-Studio                        |  | 100% Owned      |  | 12,100 Sq.Ft.                           |  |                   
|Tower/Transmitter Site               |  | 100% Owned      |  | 21 Acres                                |  |                   
|                                     |  |                 | 
|WTVORockford, IL                    |  |                 |  |                                         |  |                    
|Office-Studio-Tower/Transmitter Site |  | 100% Owned      |  | 20,000 Sq.Ft.                           |  |                   
|                                     |  |                 | 
|Corporate OfficeBrecksville, OH     |  | Leased          |  | 540 Sq. Ft.                             |  | 10/14/07           

---

|(1) | The office space and studio used by WYOU are owned by Nexstar.
|--- | --------------------------------------------------------------

|(2) | Effective June 1, 2005, WBAK changed its call letters to WFXW.
|--- | --------------------------------------------------------------

|(3) | The office space and studio used by WFXW are owned by Nexstar.
|--- | --------------------------------------------------------------

|(4) | The office space and studio used by WFXP are owned by Nexstar.
|--- | --------------------------------------------------------------

|(5) | The office space and studio used by KJTL and KJBO-LP are owned by Nexstar.
|--- | --------------------------------------------------------------------------

|(6) | The office space and studio used by KSAN are owned by Nexstar.
|--- | --------------------------------------------------------------

|(7) | The office space and studio used by KCIT/KCPN-LP are owned by Nexstar.
|--- | ----------------------------------------------------------------------

|(8) | The office space and studio used by KAMC are owned by Nexstar.
|--- | --------------------------------------------------------------

|(9) | The office space and studio used by KHMT are owned by Nexstar.
|--- | --------------------------------------------------------------

Item 3. Legal Proceedings

From time to time, we are involved in litigation that arises from the ordinary
operations of our business, such as contractual or employment disputes or other general actions. In the event of an adverse outcome of these proceedings, we believe the resulting liabilities would not have a material adverse effect on our financial
condition or results of operations.

Item 4. Submission of Matters to a Vote of the Security Holders

We did not submit any matter to a vote of
our sole shareholder during the fourth quarter of 2005.



21



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##### Table of Contents

##### Index to Financial Statements

PART II

Item 5. Market For Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information

As of December 31, 2005, Missions common stock was not traded on any market and David S.
Smith, the sole shareholder of Mission, held 1,000 shares of common stock. Mission has never paid any dividends.

Item 6. Selected Financial Data

The selected historical financial data presented below for the years
ended December 31, 2005, 2004, 2003, 2002 and 2001 has been derived from our financial statements. The following financial data should be read in conjunction with Item 7 Managements Discussion and Analysis of Financial
Condition and Results of Operations and the consolidated financial statements and related notes included in Part IV, Item 15(a) of this Annual Report on Form 10-K.



|                                                                                                                 |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|---------------------------------------------------------------------------------------------------------------- |  | ------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - |  | - | ------- | -
|                                                                                                                 |  | Fiscal years ended December 31, |        
|                                                                                                                 |  | 2005                            |         |   | 2004 |   |         | 2003 |  |   | 2002    |   |  | 2001 |        
|                                                                                                                 |  | (in thousands)                  |        
|Statement of Operations Data:                                                                                    |  |                                 |         |  
|Net broadcast revenue (including trade and barter)(1)                                                            |  | $                               | 4,959   |   |      | $ | 15,323  |      |  | $ | 18,242  |   |  | $    | 15,415  |   |  | $ | 9,612   |  
|Revenue from Nexstar Broadcasting, Inc.(2)                                                                       |  |                                 | 28,141  |   |      |   | 21,186  |      |  |   | 10,204  |   |  |      | 12,337  |   |  |   | 14,106  |  
|                                                                                                                 |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Net revenue                                                                                                      |  |                                 | 33,100  |   |      |   | 36,509  |      |  |   | 28,446  |   |  |      | 27,752  |   |  |   | 23,718  |  
|Operating expenses (income):                                                                                     |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Direct operating expenses (exclusive of depreciation and amortization shown separately below)                    |  |                                 | 4,444   |   |      |   | 4,108   |      |  |   | 4,611   |   |  |      | 3,716   |   |  |   | 2,455   |  
|Selling, general and administrative expenses (exclusive of depreciation and amortization shown separately below) |  |                                 | 2,232   |   |      |   | 4,406   |      |  |   | 6,040   |   |  |      | 4,748   |   |  |   | 3,237   |  
|Local service agreement fees associated with Nexstar Broadcasting, Inc.(3)                                       |  |                                 | 11,400  |   |      |   | 13,167  |      |  |   | 5,909   |   |  |      | 4,447   |   |  |   | 3,993   |  
|Loss (gain) on asset disposal, net                                                                               |  |                                 | (79     | ) |      |   | (170    | )    |  |   | (269    | ) |  |      | 1,027   |   |  |   | 1,453   |  
|Amortization of broadcast rights                                                                                 |  |                                 | 4,408   |   |      |   | 4,579   |      |  |   | 4,126   |   |  |      | 3,954   |   |  |   | 4,084   |  
|Depreciation and amortization                                                                                    |  |                                 | 8,918   |   |      |   | 8,064   |      |  |   | 9,499   |   |  |      | 8,956   |   |  |   | 10,896  |  
|                                                                                                                 |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Income (loss) from operations                                                                                    |  |                                 | 1,777   |   |      |   | 2,355   |      |  |   | (1,470  | ) |  |      | 904     |   |  |   | (2,400  | )
|Interest expense                                                                                                 |  |                                 | (9,193  | ) |      |   | (5,871  | )    |  |   | (7,574  | ) |  |      | (8,860  | ) |  |   | (12,298 | )
|Loss on extinguishment of debt                                                                                   |  |                                 | (508    | ) |      |   | (1,094  | )    |  |   | (2,582  | ) |  |      | (276    | ) |  |   | (810    | )
|Interest income                                                                                                  |  |                                 | 30      |   |      |   | 18      |      |  |   | 7       |   |  |      | 14      |   |  |   | 15      |  
|Other income (expenses), net                                                                                     |  |                                 |        |   |      |   | 5       |      |  |   | 750     |   |  |      | 778     |   |  |   | (1,617  | )
|                                                                                                                 |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Loss before income taxes                                                                                         |  |                                 | (7,894  | ) |      |   | (4,587  | )    |  |   | (10,869 | ) |  |      | (7,440  | ) |  |   | (17,110 | )
|Income tax expense                                                                                               |  |                                 | (1,330  | ) |      |   | (1,119  | )    |  |   | (2,738  | ) |  |      | (900    | ) |  |   | (20     | )
|                                                                                                                 |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Loss before cumulative effect of change in accounting principle and minority interest in consolidated entity     |  |                                 | (9,224  | ) |      |   | (5,706  | )    |  |   | (13,607 | ) |  |      | (8,340  | ) |  |   | (17,130 | )
|Cumulative effect of change in accounting principle                                                              |  |                                 |        |   |      |   |        |      |  |   |        |   |  |      | (1,997  | ) |  |   |        |  
|Minority interest in consolidated entity                                                                         |  |                                 |        |   |      |   | 188     |      |  |   | 420     |   |  |      |        |   |  |   |        |  
|                                                                                                                 |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Net loss                                                                                                         |  | $                               | (9,224  | ) |      | $ | (5,518  | )    |  | $ | (13,187 | ) |  | $    | (10,337 | ) |  | $ | (17,130 | )
|                                                                                                                 |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Balance Sheet Data (end of period):                                                                              |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Cash and cash equivalents                                                                                        |  | $                               | 1,404   |   |      | $ | 6,981   |      |  | $ | 1,857   |   |  | $    | 526     |   |  | $ | 656     |  
|Working capital deficit                                                                                          |  |                                 | (23,406 | ) |      |   | (16,466 | )    |  |   | (29,413 | ) |  |      | (34,149 | ) |  |   | (21,394 | )
|Net intangible assets and goodwill                                                                               |  |                                 | 92,984  |   |      |   | 98,750  |      |  |   | 88,846  |   |  |      | 86,924  |   |  |   | 82,599  |  
|Total assets                                                                                                     |  |                                 | 119,804 |   |      |   | 134,894 |      |  |   | 118,044 |   |  |      | 109,879 |   |  |   | 109,870 |  
|Total debt                                                                                                       |  |                                 | 172,268 |   |      |   | 172,740 |      |  |   | 143,000 |   |  |      | 133,855 |   |  |   | 126,254 |  
|Total shareholders deficit                                                                                      |  |                                 | (89,011 | ) |      |   | (79,787 | )    |  |   | (74,269 | ) |  |      | (61,082 | ) |  |   | (50,745 | )
|                                                                                                                 |  |                                 |         |   |     
|Cash Flow Data:                                                                                                  |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Net cash provided by (used in):                                                                                  |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Operating activities                                                                                             |  | $                               | 3,220   |   |      | $ | (2,108  | )    |  | $ | 9,716   |   |  | $    | 3,024   |   |  | $ | 9,958   |  
|Investing activities                                                                                             |  |                                 | (7,529  | ) |      |   | (22,144 | )    |  |   | (13,196 | ) |  |      | (9,985  | ) |  |   | 1,916   |  
|Financing activities                                                                                             |  |                                 | (1,268  | ) |      |   | 29,376  |      |  |   | 4,811   |   |  |      | 6,831   |   |  |   | (11,613 | )
|                                                                                                                 |  |                                 |         |   |     
|Other Financial Data:                                                                                            |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|Capital expenditures, net of proceeds from asset sales                                                           |  | $                               | 1,400   |   |      | $ | 251     |      |  | $ | 1,204   |   |  | $    | 234     |   |  | $ | (7,916  | )
|Cash payments for broadcast rights                                                                               |  |                                 | 2,211   |   |      |   | 2,080   |      |  |   | 2,044   |   |  |      | 1,933   |   |  |   | 1,827   |  



---

|(1) | Net broadcast revenue is defined as revenue net of certain commissions, including trade and barter revenue.
|--- | -----------------------------------------------------------------------------------------------------------

|(2) | We have joint sales agreements with Nexstar, which permits Nexstar to sell and retain a percentage of the net revenue from the advertising time on our stations in return for monthly
payments to us of the remaining percentage of the net revenue. We also have time brokerage agreements with Nexstar that allow Nexstar to program most of the broadcast time for us, sell the advertising time and retain the advertising revenue
generated in exchange for monthly payments to us.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | We have shared services agreements with Nexstar, which allows the sharing of services including news production, technical maintenance and security, in exchange for Nexstars
right to receive certain payments from us.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



22



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##### Index to Financial Statements

Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations

The
following discussion and analysis should be read in conjunction with Item 6. Selected Financial Data and the financial statements and related notes included in Part IV, Item 15(a) of this Annual Report on Form 10-K.

On December 30, 2003, Mission completed the acquisition of television stations KOLR, the CBS affiliated station in Springfield, Missouri; KHMT,
the Fox affiliated station in Billings, Montana; and KAMC, the ABC affiliated station in Lubbock, Texas, from VHR Broadcasting, Inc. and its subsidiaries (VHR), and the acquisition of television stations KCIT, the Fox affiliated station
in Amarillo, Texas, and KCPN-LP, an independent station in Amarillo, Texas, from Mission Broadcasting of Amarillo, Inc. (Mission of Amarillo). VHR merged with and into two affiliates of Mission of Amarillo, and then Mission of Amarillo
and such affiliates merged with and into Mission. Prior to December 30, 2003, Quorum Broadcast Holdings, LLC (Quorum) provided sales or other services to KOLR, KHMT, KAMC, KCIT and KCPN-LP under local service agreements with VHR and
Mission of Amarillo, as applicable, that were substantially similar to Nexstars local service agreements described below with Mission. On December 30, 2003, Nexstar Broadcasting Group, Inc., Nexstars ultimate parent, completed its
acquisition of all the direct and indirect subsidiaries of Quorum. The Quorum acquisition was structured as a merger of Quorums direct subsidiaries into Nexstar Broadcasting Group, Inc. and a subsequent contribution and merger of Quorums
indirect subsidiaries with and into Nexstar. Upon completion of the Quorum acquisition and the Mission mergers, Nexstar became a party to the local service agreements as successor to the Quorum subsidiaries and Mission became a party to such
agreements as the successor to VHR and Mission of Amarillo. Mission also entered into option agreements with Nexstar for Nexstars purchase of these stations.

ABRY Partners LLC, Nexstar Broadcasting Group, Inc.s principal stockholder through its various funds, both before and after the merger, held more than 50% of the voting ownership of both Nexstar Broadcasting
Group, Inc. and Quorum. Although Nexstar and Quorum did not own Mission, Mission of Amarillo or VHR and did not operate the television stations owned by Mission, Mission of Amarillo or VHR, Nexstar and Quorum were deemed to have controlling
financial interests under accounting principles generally accepted in the United States of America (U.S. GAAP) in Mission, Mission of Amarillo and VHR due to their guarantees of Missions, Mission of Amarillos and VHRs
debt and the local service and purchase option agreements described below with Mission, Mission of Amarillo and VHR. Due to these relationships and the common financial control therein, Missions acquisition of Mission of Amarillo and VHR were
accounted for as a combination of entities under common control in a manner similar to pooling of interests. Accordingly, Missions financial statements herein have been restated to include the financial results of the VHR and Mission of
Amarillo stations for 2003.

We make references throughout our Managements Discussion and Analysis of Financial
Condition and Results of Operations to comparisons on a same station basis in order to provide a more meaningful comparison of annual growth from internal operations which may be masked by growth from acquisitions. Same station
basis refers to the television markets in which we owned a television station at the beginning and end of a particular period. Television markets in the United States of America are generally recognized as Designated Market Areas, or DMAs, as
reported by the A.C. Nielsen Company. In particular, references to a comparison on a same station basis for the year ended December 31, 2005 versus the year ended December 31, 2004 include the following stations: WYOU, WFXP, KJTL, KJBO-LP,
KODE, KOLR, KCIT, KCPN-LP, KAMC, KHMT, KSAN and KRBC. References to a comparison on a same station basis for the year ended December 31, 2004 versus the year ended December 31, 2003 include the following stations: WYOU, WFXP, KJTL,
KJBO-LP, KODE, KOLR, KCIT, KCPN-LP, KAMC and KHMT. References As used in the report, unless the context indicates otherwise, Mission refers to Mission Broadcasting, Inc., and all references to we, our, and
us refer to Mission.

Executive Summary

Overview of Operations

As of December 31, 2005, we owned and operated 15 television
stations. We have local service agreements with certain television stations of Nexstar Broadcasting, Inc. (Nexstar), through which Nexstar provides various programming, sales or other services to our television stations. In order for
both Nexstar and us to comply with Federal Communications Commission (FCC) regulations, we maintain complete responsibility for and control over programming, finances, personnel and operations of our stations.

The following table summarizes the various local service agreements our stations had in effect as of December 31, 2005 with Nexstar-owned stations:



|                   |  |  |  |                                                                                                      
|------------------ |  |  |  | -----------------------------------------------------------------------------------------------------
|Service Agreements |  |  |  | Stations                                                                                             
|TBA Only (1)       |  |  |  | WFXP and KHMT                                                                                        
|                   |  | 
|SSA & JSA (2)      |  |  |  | KJTL, KJBO-LP, KOLR, KCIT, KCPN-LP, KAMC, KRBC, KSAN, WUTR, WFXW (formerly WBAK), WYOU, KODE and WTVO

---

|(1) | We have a time brokerage agreement (TBA) for each of these stations which allows Nexstar to program most of each stations broadcast time, sell each stations
advertising time and retain the advertising revenue generated in exchange for monthly payments to us.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | We have both a shared services agreement (SSA) and a joint services agreement (JSA) for each of these stations. The SSA allows the sharing of services
including news production, technical maintenance and security, in exchange for Nexstars right to receive certain payments from us as described in the SSAs. The JSAs permit Nexstar to sell and retain a percentage of the net revenue from the
stations advertising time in return for monthly payments to us of the remaining percentage of the net revenue, as described in the JSAs.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



23



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##### Table of Contents

##### Index to Financial Statements

The arrangements under the SSAs and JSAs have had the effect of Nexstar receiving substantially all of
the available cash, after debt service costs, generated by the stations listed above. The arrangements under the TBAs have also had the effect of Nexstar receiving substantially all of the available cash generated by the TBA stations listed above.
Mission anticipates that Nexstar will continue to receive substantially all of Missions available cash, after payments for debt service costs, generated by the stations listed above. For more information about our local service agreements with
Nexstar, refer to Note 4 of our financial statements in Part IV, Item 15(a) of this Annual Report on Form 10-K.

Nexstar Broadcasting
Group, Inc. and its subsidiaries (Nexstar Broadcasting Group) guarantee the obligations incurred under our senior credit facility. We are a guarantor of the senior credit facility entered into by Nexstar and the senior subordinated notes
issued by Nexstar. In consideration of Nexstars guarantee of our senior credit facility, our sole shareholder has granted Nexstar a purchase option to acquire the assets and assume the liabilities of each of our television stations, subject to
FCC consent. These option agreements are freely exercisable or assignable by Nexstar without consent or approval by our sole shareholder.

The operating revenue of our stations is derived primarily from broadcast advertising revenue sold and collected by Nexstar and paid to us under the JSAs. Broadcast advertising revenue is affected by a number of factors, including the
economic conditions of the markets in which we operate, the demographic makeup of those markets and the marketing strategy employed in each market. Advertising revenue is positively affected by strong local economies, national and regional political
election campaigns, and certain events such as the Olympic Games or the Super Bowl. Because television broadcast stations rely on advertising revenue, declines in advertising budgets, particularly in recessionary periods, adversely affect the
broadcast industry, and as a result may contribute to a decrease in the revenue of broadcast television stations. The stations advertising revenue is generally highest in the second and fourth quarters of each year, due in part to increases in
consumer advertising in the spring and retail advertising in the period leading up to, and including, the holiday season. In addition, advertising revenue is generally higher during even-numbered years resulting from political advertising and
advertising aired during the Olympic Games.

Each of our stations, except for KCPN-LP, has a network affiliation agreement pursuant to
which the network provides programming to the station during specified time periods, including prime time. NBC, CBS and ABC compensate most of our affiliated stations for distributing the networks programming over the air and for allowing the
network to keep a portion of advertising inventory during those time periods. The affiliation agreements with Fox and UPN do not provide for compensation.

Each station acquires licenses to broadcast programming in non-news and non-network time periods. The licenses are either purchased from a program distributor for cash or the program distributor is allowed to sell
some of the advertising inventory as compensation to eliminate or reduce the cash cost for the license. The latter practice is referred to as barter broadcast rights. The station records the estimated fair market value of the licenses, including any
advertising inventory given to the program distributor, as a broadcast right asset and liability. Barter broadcast rights are recorded at managements estimate of the value of the advertising time exchanged using historical advertising rates,
which approximates the fair value of the program material received. The assets are amortized as a component of amortization of broadcast rights. Amortization is computed using the straight-line method based on the license period or usage, whichever
yields the greater expense. The cash broadcast rights liabilities are reduced by monthly payments while the barter liability is amortized over the life of the contract as barter revenue.

Our primary operating expense consists of fixed monthly SSA fees paid to Nexstar for news production and technical and other services. To a lesser extent
our operating expenses include employee compensation and related benefits. A large percentage of the costs involved in the operation of our stations remain fixed.

Station Acquisitions

On June 13, 2003, we completed our acquisition of KRBC, the NBC
affiliate in Abilene-Sweetwater, Texas, and KSAN, the NBC affiliate in San Angelo, Texas, for total consideration of $10.0 million, exclusive of transaction costs. Pursuant to terms of the purchase agreement, we made a down payment of $1.5 million
against the purchase price in December 2002 and paid the remaining $8.5 million on June 13, 2003, exclusive of transaction costs. Prior to our acquisition of the stations, we had been providing programming and selling advertising for KRBC and
KSAN under a local marketing agreement.

On April 1, 2004, we completed our acquisition of WUTR, the ABC affiliate in Utica, New York,
for total consideration of $3.7 million, exclusive of transaction costs.

On April 6, 2004, we completed our acquisition of WFXW
(formerly WBAK), the Fox affiliate in Terre Haute, Indiana, for total consideration of $3.0 million, exclusive of transaction costs. Pursuant to terms of the purchase agreement, we made a down payment of $1.5 million against the purchase price on
May 9, 2003 and paid the remaining $1.5 million on April 6, 2004, exclusive of transaction costs. Prior to our acquisition of the station, we had been providing programming and selling advertising for WFXW under a TBA.



24



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##### Table of Contents

##### Index to Financial Statements

On January 4, 2005, we completed our acquisition of WTVO, the ABC affiliate in Rockford, Illinois,
for total consideration of $20.75 million, exclusive of transaction costs. Pursuant to terms of the purchase agreement, we made an initial payment of $15.0 million against the purchase price on November 1, 2004, to acquire substantially all of
the assets of WTVO, except for its FCC license and certain transmission equipment. We paid the remaining $5.75 million on January 4, 2005, exclusive of transaction costs, for the purchase of WTVOs FCC license and certain transmission
equipment. Prior to our acquisition of the station, we had been providing programming and selling advertising for WTVO under a TBA.

Refinancing of Senior Credit Facilities

On April 1, 2005, we entered into a new senior credit facility
agreement which replaced our previous credit facility. Our new senior credit facility consists of a $172.7 million term loan and a $47.5 million revolving loan. All borrowings outstanding under this new credit facility are due to mature in 2012. The
term loan, which matures in October 2012, is payable in consecutive quarterly installments amortized at 0.25% quarterly which commenced on December 31, 2005, with the remaining 93.25% due at maturity. Borrowings under the new credit facility
bear interest at either a base rate plus an applicable margin or, at our option, LIBOR plus an applicable margin. Under the new credit facility agreement, the applicable margin component of the revolving loan was decreased by 100 basis points,
representing one percent. For a discussion of interest rates and financial covenant requirements of the new credit facility, we refer you to Note 7 of our financial statements in Part IV, Item 15(a) of this Annual Report on Form 10-K.

Nexstar also entered into a new senior credit facility agreement on April 1, 2005 which replaced its previous credit facility. As of
December 31, 2005, Nexstars new credit facility consists of a $175.8 million term loan ($182.3 million original amount less $6.5 million of voluntary reductions) and a $50.0 million revolving loan. Terms of the new Nexstar credit
facility, including maturity and interest rates, are the same as the terms of our new credit facility.

Nexstar Broadcasting Group
guarantees full payment of all obligations under Nexstars and our new credit facilities. In addition, we guarantee full payment of all obligations under Nexstars new credit facility.

Guarantee of Nexstars 7% Notes

On April 1, 2005, Nexstar issued 7% senior subordinated notes due 2014 (7% Notes) pursuant to a Supplemental Indenture, dated April 1, 2005, among Nexstar Broadcasting Group, Nexstar, us and The Bank of New
York, as trustee, in the aggregate principal amount of $75.0 million. The 7% Notes were issued as an add-on to the $125.0 million aggregate principal amount of 7% Notes previously issued by Nexstar. We and Nexstar Broadcasting Group guarantee the
obligations under the 7% Notes in the aggregate principal amount of $200.0 million.

Recent Developments

On October 20, 2005, we reached an agreement with Cox Communications, Inc. (Cox) for the retransmission of our stations signal
in Abilene-Sweetwater, San Angelo, Lubbock and Amarillo, Texas; Springfield and Joplin, Missouri and Pittsburg, Kansas. Under this agreement, Cox has agreed to compensate us for the right to carry our stations in these markets. As a result, Cox now
carries KRBC on its cable system in Abilene, Texas. KRBC had previously been off of Coxs cable system when a retransmission consent agreement expired on December 31, 2004. In connection with the agreement, Cox has withdrawn a complaint it
had submitted to the FCC against us.

On December 19, 2005, we reached an agreement with Cable ONE, Inc. (Cable ONE) for
the retransmission of our stations signal in Joplin, Missouri. Under this agreement, Cable ONE has agreed to compensate us for the right to carry our station in this market. As a result, Cable ONE now carries KODE on its cable system in
Joplin, Missouri. KODE had previously been off of Cable ONEs cable system when a retransmission consent agreement expired on December 31, 2004.

On January 24, 2006, the owners of UPN and WB announced that the two television networks will merge to form a new network called The CW. We operate one UPN affiliated station located in Wichita Falls,
Texas. We are currently evaluating the impact the merger will have on our financial position and results of operations.

In
early 2006, we completed multi-year retransmission consent agreements with substantially all of the cable systems which carry our stations signals in all 13 markets in which we broadcast.



25



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##### Table of Contents

##### Index to Financial Statements

Historical Performance

Revenue

The following table sets forth the principal types of revenue earned by our stations
for the periods indicated and each type of revenue (other than trade and barter, and revenue from Nexstar Broadcasting, Inc.) as a percentage of total gross revenue, as well as certain commissions:



|                                        |  |                         |        |      |       |        |   |        |  |        |  |   |        |  |      
|--------------------------------------- |  | ----------------------- | ------ | ---- | ----- | ------ | - | ------ |  | ------ |  | - | ------ |  | -----
|                                        |  | Year Ended December 31,
|                                        |  | 2005                    |        | 2004 |       | 2003  
|                                        |  | Amount                  |        | %    |       | Amount |   | %      |  | Amount |  | %
|                                        |  | (dollars in thousands) 
|Local                                   |  | $                       |       |      |      |        | $ | 7,427  |  | 50.1   |  | $ | 10,922 |  | 59.4 
|National                                |  |                         |       |      |      |        |   | 3,871  |  | 26.1   |  |   | 5,208  |  | 28.3 
|Political                               |  |                         |       |      |      |        |   | 1,289  |  | 8.7    |  |   | 434    |  | 2.4  
|Network compensation                    |  |                         | 1,627  |      | 64.2  |        |   | 1,849  |  | 12.5   |  |   | 1,581  |  | 8.6  
|Other                                   |  |                         | 906    |      | 35.8  |        |   | 379    |  | 2.6    |  |   | 231    |  | 1.3  
|                                        |  |                         |        |      |       |        |   |        |  |        |  |   |        |  |      
|Total gross revenue                     |  |                         | 2,533  |      | 100.0 |        |   | 14,815 |  | 100.0  |  |   | 18,376 |  | 100.0
|Less: Certain commissions               |  |                         |       |      |      |        |   | 1,910  |  | 12.9   |  |   | 2,708  |  | 14.7 
|                                        |  |                         |        |      |       |        |   |        |  |        |  |   |        |  |      
|Net broadcast revenue                   |  |                         | 2,533  |      | 100.0 |        |   | 12,905 |  | 87.1   |  |   | 15,668 |  | 85.3 
|Trade and barter revenue                |  |                         | 2,426  |      |       |        |   | 2,418  |  |        |  |   | 2,574  |  |      
|Revenue from Nexstar Broadcasting, Inc. |  |                         | 28,141 |      |       |        |   | 21,186 |  |        |  |   | 10,204 |  |      
|                                        |  |                         |        |      |       |        |   |        |  |        |  |   |        |  |      
|Net revenue                             |  | $                       | 33,100 |      |       |        | $ | 36,509 |  |        |  | $ | 28,446 |  |      
|                                        |  |                         |        |      |       |        |   |        |  |        |  |   |        |  |      

Results of Operations

The following table sets forth a summary of our operations for the periods indicated and their percentages of net revenue:



|                                                                       |  |                         |        |   |      |       |   |        |   |        |   |  |       |        |  |   |        |   |  |       |  
|---------------------------------------------------------------------- |  | ----------------------- | ------ | - | ---- | ----- | - | ------ | - | ------ | - |  | ----- | ------ |  | - | ------ | - |  | ----- | -
|                                                                       |  | Year Ended December 31, |       
|                                                                       |  | 2005                    |        |   | 2004 |       |   | 2003   |  
|                                                                       |  | Amount                  |        |   | %    |       |   | Amount |   |        | % |  |       | Amount |  |   | %      |  
|                                                                       |  | (dollars in thousands)  |       
|Net revenue                                                            |  | $                       | 33,100 |   |      | 100.0 |   |        | $ | 36,509 |   |  | 100.0 |        |  | $ | 28,446 |   |  | 100.0 |  
|Operating expenses (income):                                           |  |                         |        |   |      |       |   |        |   |        |   |  |       |        |  |   |        |   |  |       |  
|Corporate expenses                                                     |  |                         | 842    |   |      | 2.5   |   |        |   | 762    |   |  | 2.1   |        |  |   | 1,033  |   |  | 3.6   |  
|Station direct operating expenses, net of trade                        |  |                         | 4,444  |   |      | 13.4  |   |        |   | 3,886  |   |  | 10.6  |        |  |   | 4,146  |   |  | 14.6  |  
|Selling, general and administrative expenses                           |  |                         | 1,390  |   |      | 4.2   |   |        |   | 3,644  |   |  | 10.0  |        |  |   | 5,007  |   |  | 17.6  |  
|Local service agreement fees associated withNexstar Broadcasting, Inc. |  |                         | 11,400 |   |      | 34.4  |   |        |   | 13,167 |   |  | 36.1  |        |  |   | 5,909  |   |  | 20.8  |  
|Gain on asset disposal, net                                            |  |                         | (79    | ) |      | (0.2  | ) |        |   | (170   | ) |  | (0.5  | )      |  |   | (269   | ) |  | (0.9  | )
|Trade and barter expense                                               |  |                         | 2,426  |   |      | 7.3   |   |        |   | 2,339  |   |  | 6.4   |        |  |   | 2,531  |   |  | 8.9   |  
|Depreciation and amortization                                          |  |                         | 8,918  |   |      | 26.9  |   |        |   | 8,064  |   |  | 22.1  |        |  |   | 9,499  |   |  | 33.4  |  
|Amortization of broadcast rights, excluding barter                     |  |                         | 1,982  |   |      | 6.0   |   |        |   | 2,462  |   |  | 6.7   |        |  |   | 2,060  |   |  | 7.2   |  
|                                                                       |  |                         |        |   |      |       |   |        |   |        |   |  |       |        |  |   |        |   |  |       |  
|Income (loss) from operations                                          |  | $                       | 1,777  |   |      |       |   |        | $ | 2,355  |   |  |       |        |  | $ | (1,470 | ) |  |       |  
|                                                                       |  |                         |        |   |      |       |   |        |   |        |   |  |       |        |  |   |        |   |  |       |  

Year Ended December 31, 2005 Compared to Year Ended December 31, 2004.

Revenue

Total net revenue for
the year ended December 31, 2005, decreased by $3.4 million, or 9.3% from the same period of 2004. On a same station basis, total net revenue for the year ended December 31, 2005, decreased by $6.9 million, or 20.6% from the same period in
2004. As of January 1, 2005, we receive no advertising revenue directly from advertisers because Nexstar sells all of the advertising time of our stations.

Local, national and political advertising revenue for the year ended December 31, 2005, decreased by $12.6 million, or 100.0% compared to the same period in 2004. This decrease was attributed to the JSA effective
in June 2004 at KSAN, the JSA effective in July 2004 at KRBC and the JSA effective in October 2004 at each of WYOU and KODE.

Revenue from
Nexstar for the year ended December 31, 2005, increased by $7.0 million, or 32.8% over the same period in 2004. Our acquisitions of WUTR and WTVO and the related JSAs with Nexstar had an increase of $3.0 million. On a same station basis,
revenue from Nexstar increased by $4.0 million as a result of the JSA effective in June 2004 at KSAN, the JSA effective in July 2004 at KRBC and the JSA effective in October 2004 at each of WYOU and KODE.



26



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##### Table of Contents

##### Index to Financial Statements

Operating Expenses

Corporate expenses, related to costs associated with the centralized management of our stations, were $0.8 million for both the years ended
December 31, 2005 and 2004.

Station direct operating expenses, consisting primarily of news, engineering and programming, and
selling, general and administrative expenses, net of trade, decreased by $1.7 million, or 22.5% for the year ended December 31, 2005, compared to the same period in 2004. The $1.7 million decrease was primarily attributed to a reduction in
salary expense for production, technical and administrative personnel for services that are now provided to us by Nexstar under the SSAs.

Local service agreement fees associated with Nexstar relate to the fees as designated by the SSAs for services provided in the production of newscasts, technical maintenance, promotional and administrative support. For the year ended
December 31, 2005, these expenses decreased $1.8 million, or 13.4% compared to the same period in 2004. A net increase of $0.1 million was attributed to the SSAs of WUTR and WTVO that were not in place or only partially in place during the year
ended December 31, 2004, partially offset by a lower amount of SSA fees resulting from the amendment of the SSA of WFXW effective January 1, 2005. On a same station basis, a $1.9 million decrease was primarily attributed to a lower amount
of net SSA fees resulting from the amendment of four SSAs effective January 1, 2005.

Amortization of broadcast rights, excluding
barter, for the year ended December 31, 2005, decreased by $0.5 million, or 19.5% from the same period in 2004. The decrease was primarily attributed to an increased use of barter programming during 2005 as compared to cash programming,
partially offset by an increase in amortization of broadcast rights from newly acquired television stations WUTR and WTVO.

Amortization of
intangible assets for the year ended December 31, 2005, increased by $0.6 million, or 11.2% over the same period in 2004. The increase was primarily the result of the newly acquired television stations WUTR and WTVO.

Depreciation of property and equipment for the year ended December 31, 2005, increased by $0.2 million, or 9.2%, compared to the same period in
2004. The increase was primarily the result of the newly acquired television stations WUTR and WTVO.

Income from Operations

Income from operations was $1.8 million for the year ended December 31, 2005, compared to $2.4 million for the same period of
2004, a decrease of $0.6 million, or 24.5%. The decrease in income from operations for 2005 was primarily attributed to the decrease in total net revenue and increase in amortization of intangible assets, partially offset by the decreases in
selling, general and administrative expenses and selling, general and administrative expenses paid to Nexstar, as discussed above.

Interest Expense

Interest expense, including amortization of debt financing costs, increased by $3.3 million, or
56.6%, for the year ended December 31, 2005, compared to the same period in 2004. The increase in interest expense was primarily attributed to higher interest rates and greater amount of debt outstanding in 2005 under our senior credit
facility.

Loss on Extinguishment of Debt

Loss on extinguishment of debt of $0.5 million for the year ended December 31, 2005 consisted of the write-off of $0.1 million of previously capitalized debt financing costs and $0.4 million of transaction costs
related to the refinancing of our senior secured credit facility in April 2005. Loss on extinguishment of debt of $1.1 million for the year ended December 31, 2004 consisted of the write-off of $0.8 million of previously capitalized debt
financing costs and $0.3 million of transaction costs related to the amending of our senior secured credit facility in August 2004.

Income Taxes

Income taxes for the year ended December 31, 2005 were $1.3 million, compared to $1.1 million for
the same period in 2004, an increase of $0.2 million, or 18.9%. Our provision for income taxes is primarily created by an increase in the deferred tax liabilities position during the year arising from the amortization of goodwill and other
indefinite-lived intangible assets for income tax purposes which are not amortized for financial reporting purposes. This expense has no impact on our cash flows. Based primarily on our recent history of net operating losses, we do not consider the
realization of our net deferred tax assets to be more likely than not. Accordingly, we have provided a valuation allowance for net deferred tax assets excluding deferred tax liabilities attributable to goodwill and indefinite-lived intangible
assets. No tax benefit was recorded with respect to the losses for 2005 and 2004, as the utilization of such losses is not likely to be realized in the foreseeable future.



27



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##### Table of Contents

##### Index to Financial Statements

Minority Interest in Consolidated Entity

The minority interest of $0.2 million for the year ended December 31, 2004, related to the recognition of $0.2 million of expenses in stations WFXW
and WTVO prior to the consummation of their acquisitions as a result of the application of FIN No. 46R.

Year Ended
December 31, 2004 Compared to Year Ended December 31, 2003.

Revenue

Total net revenue for the year ended December 31, 2004, increased by $8.1 million, or 28.3% over the same period of 2003. On a same station basis,
the increase was $6.2 million, or 26.2%.

Local and national advertising revenue for the year ended December 31, 2004, decreased by
$4.8 million, or 30.0% compared to the same period in 2003. The decrease was primarily attributed to the JSA effective in June 2004 at KSAN, the JSA effective in July 2004 at KRBC and the JSAs effective in October 2004 at each of WYOU and KODE.

Political advertising revenue for the year ended December 31, 2004, was $1.3 million as compared to $0.4 million for the same period
in 2003, an increase of $0.9 million, or 197.0%. The increase was primarily attributed to presidential and/or statewide races held in 2004 in Pennsylvania and Missouri.

Revenue from Nexstar for the year ended December 31, 2004, increased by $11.0 million, or 107.6% over the same period in 2003. Our acquisitions of WFXW and WUTR and the related JSAs with Nexstar had an increase
of $3.8 million. On a same station basis, revenue from Nexstar increased $7.2 million as a result of restructuring and amending the JSA effective in January 2004 at each of KOLR, KAMC, KCIT, WFXW and KJTL, the JSA effective in June 2004 at KSAN, the
JSA effective in July 2004 at KRBC and the JSAs effective in October 2004 at each of WYOU and KODE.

Operating Expenses

Corporate expenses are costs associated with the centralized management of our stations. For the year ended December 31, 2004,
corporate expenses decreased by $0.3 million, or 26.2% compared to the same period in 2003. The decrease was attributed to the elimination of the VHR corporate office after the merger was completed.

Station direct operating expenses, consisting primarily of news, engineering and programming, and selling, general and administrative expenses, net of
trade, decreased by $1.6 million, or 17.7% for the year ended December 31, 2004, compared to the same period in 2003. The $1.6 million decrease was attributed to a reduction in salary expense for production, technical and administrative
personnel for services that are now provided by Nexstar under the SSAs.

Local service agreement fees associated with Nexstar relate to the
fees as designated by the SSAs for services provided in the production of newscasts, technical maintenance, promotional and administrative support. For the year ended December 31, 2004, these expenses increased $7.3 million, or 122.8% over the
same period in 2003. Of the $7.3 million increase, $2.2 million is attributed to the SSAs of WFXW, WUTR, WTVO, KRBC and KSAN that were not in place for all or a part of the year ended December 31, 2003. On a same station basis, a $5.1 million
increase was attributed to the restructuring and amending of the SSAs effective January 1, 2004, at each of KOLR, KAMC, KCIT and KJTL.

Depreciation of property and equipment for the year ended December 31, 2004, decreased by $1.0 million, or 28.0% compared to the same period in 2003. The decrease was primarily attributed to assets at certain stations becoming fully
depreciated during the first quarter of 2004.

Amortization of intangible assets for the year ended December 31, 2004, decreased by
$0.4 million, or 7.4% compared to the same period in 2003. The decrease was a result of short lived intangible assets at KODE being fully amortized in 2003.

Amortization of broadcast rights, excluding barter, for the year ended December 31, 2004, increased by $0.4 million, or 19.5% over the same period in 2003. The increase was attributed to amortization of broadcast
rights on KRBC and KSAN, which were purchased in June 2003, and from newly acquired or initially consolidated television stations WUTR, WFXW and WTVO.

Income (Loss) from Operations

Income from operations was $2.4 million for the year ended
December 31, 2004, an increase of $3.9 million over the loss of operations of $1.5 million for the same period of 2003.



28



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##### Table of Contents

##### Index to Financial Statements

Interest Expense

Interest expense, including amortization of debt financing costs, decreased in the year ended December 31, 2004, by $1.7 million as compared to the same period in 2003. The decrease was attributed to lower cost
of capital from debt refinanced at reduced rates in the fourth quarter of 2003 along with a reduction in the amortization of debt financing costs.

Other Income

Other income for the year ended December 31, 2003 includes the marking-to-market of the interest
rate swap agreement which resulted in recognition of a gain of $0.9 million. The change in market values was due to a fluctuation in market interest rates. The interest rate swap was terminated on June 13, 2003.

Loss on Extinguishment of Debt

Loss on extinguishment of debt of $1.1 million for the year ended December 31, 2004 represented the write off of $0.8 million of previously capitalized debt financing costs and $0.3 million of transaction costs related to the amending
of our senior secured credit facility in August 2004. Loss on extinguishment of debt of $2.6 million for the year ended December 31, 2003 represented the write off of financing costs related to debt that was refinanced in 2003.

Income Taxes

Income taxes for
the year ended December 31, 2004, decreased by $1.6 million, or 59.1% as compared to the same period in 2003. The decrease was attributed to providing for an uncertain tax position for the year ended December 31, 2003. Our provision for
income taxes is primarily created by an increase in the deferred tax liabilities position during the year arising from the amortizing of goodwill and other indefinite-lived intangible assets for income tax purposes which are not amortized for
financial reporting purposes. This expense has no impact on our cash flows. Based primarily on our recent history of net operating losses, we do not consider the realization of its net deferred tax assets to be more likely than not. Accordingly, we
have provided a valuation allowance for net deferred tax assets excluding deferred tax liabilities attributable to goodwill and indefinite-lived intangible assets. No tax benefit was recorded with respect to the losses for 2004, as the utilization
of such loss is not likely to be realized in the foreseeable future.

Minority Interest in Consolidated Entity

The minority interest of $0.2 million and $0.4 million, respectively, for the year ended December 31, 2004 and 2003, relates to the recognition of
$0.2 million and $0.4 million, respectively, of expenses due to the application of FIN No. 46 as it pertains to the local service arrangement we had with WFXW from May 9, 2003 to April 6, 2004 and with WTVO since November 1, 2004
(see Note 4 of the financial statements).

Liquidity and Capital Resources

We are highly leveraged, which makes us vulnerable to changes in general economic conditions. Our ability to meet the future cash requirements described
below depends on our ability to generate cash in the future, which is subject to general economic, financial, competitive, legislative, regulatory and other conditions, many of which are beyond our control. On March 8, 2006, Nexstar represented
to us that it will continue the various local service agreements under which it provides sales and other services to our television stations thereby providing financial support to enable us to continue to operate as a going concern. We believe that
with Nexstars pledge to continue the local service agreements, our available cash, anticipated cash flow from operations and available borrowings under our senior credit facility should be sufficient to fund working capital, capital
expenditure requirements, interest payments and scheduled debt principal payments for at least the next twelve months from December 31, 2005. In order to meet future cash needs we may, from time to time, borrow under our available credit
facility. We will continue to evaluate the best use of our operating cash flow among capital expenditures, acquisitions and debt reduction.



29



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##### Table of Contents

##### Index to Financial Statements

Overview

The following tables present summarized financial information management believes is helpful in evaluating the Companys liquidity and capital resources:



|                                                     |  |                         |        |   |      |   |         |  
|---------------------------------------------------- |  | ----------------------- | ------ | - | ---- | - | ------- | -
|                                                     |  | Year Ended December 31, |       
|                                                     |  | 2005                    |        |   | 2004 |  
|                                                     |  | (in thousands)          |       
|Net cash provided by (used for) operating activities |  | $                       | 3,220  |   |      | $ | (2,108  | )
|Net cash used for investing activities               |  |                         | (7,529 | ) |      |   | (22,144 | )
|Net cash provided by (used for) financing activities |  |                         | (1,268 | ) |      |   | 29,376  |  
|                                                     |  |                         |        |   |      |   |         |  
|Net increase (decrease) in cash and cash equivalents |  | $                       | (5,577 | ) |      | $ | 5,124   |  
|                                                     |  |                         |        |   |      |   |         |  
|Cash paid for interest, net                          |  | $                       | 9,148  |   |      | $ | 5,711   |  
|Cash paid for income taxes, net                      |  | $                       | 11     |   |      | $ | 8       |  



|                                                   |  |                |         |      |   |        
|-------------------------------------------------- |  | -------------- | ------- | ---- | - | -------
|                                                   |  | December 31,  
|                                                   |  | 2005           |         | 2004
|                                                   |  | (in thousands)
|Cash and cash equivalents                          |  | $              | 1,404   |      | $ | 6,981  
|Long-term debt including current portion           |  | $              | 172,268 |      | $ | 172,740
|Unused commitments under senior credit facility(1) |  | $              | 47,500  |      | $ | 8,500  

---

|(1) | As of December 31, 2005, there was approximately $15 million of total available borrowings that could be drawn under the Nexstar and Mission senior secured credit facilities.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

On April 1, 2005, we refinanced the borrowings outstanding under our senior credit facility. In connection with the
refinancing, we increased the borrowings under the term loan to our senior credit facility by $21.8 million and also increased the total borrowings available to us under the revolving loan to the credit facility. Under our new senior secured credit
facility agreement, the applicable margin component of the revolving loan was decreased by 100 basis points, representing one percent. Our new credit facility agreement also extended the maturity dates of the term and revolving loans to 2012.

Cash Flows  Operating Activities

The comparative net cash flows from operating activities increased by $5.3 million during the year ended December 31, 2005 compared to the same
period in 2004. The increase was primarily due to the increase in our payable to Nexstar.

Cash paid for interest increased by $3.4 million
during the year ended December 31, 2005 compared to the same period in 2004. The increase was due to higher interest rates and a greater amount of debt outstanding in 2005 under our senior credit facility.

Due to our recent history of net operating losses, we currently do not pay any federal income taxes. These net operating losses may be carried
forward, subject to expiration and certain limitations, and used to reduce taxable earnings in future years. Through the use of available loss carryforwards, it is possible that we may not pay significant amounts of federal income taxes in the
foreseeable future.

Cash Flows  Investing Activities

The comparative net cash used for investing activities increased by $14.6 million during the year ended December 31, 2005 compared to the same period
in 2004. Cash flows from investing activities consist primarily of cash used for capital additions and station acquisitions. The increase was due to a net increase in purchases of property and equipment and acquisition related payments.

Capital expenditures were $1.4 million and $0.3 million for the year ended December 31, 2005 and 2004, respectively.

Cash used for station acquisitions was $6.1 million for the year ended December 31, 2005, compared to $22.7 million for the year ended
December 31, 2004. Acquisition related payments for the year ended December 31, 2005 included the remaining payment of $5.75 million, exclusive of transaction costs, for the acquisition of WTVO. Acquisition related payments for the year
ended December 31, 2004 included the $3.7 million purchase price, exclusive of transaction costs, for the acquisition of WUTR, the remaining $1.5 million payment, exclusive of transaction costs, for the acquisition of WFXW, the initial $15.0
million payment, exclusive of transaction costs, for our acquisition of WTVO and the payment of $0.9 million for the accounts receivable of WTVO as of November 1, 2004.



30



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##### Table of Contents

##### Index to Financial Statements

Cash Flows  Financing Activities

The comparative net cash flows from financing activities decreased by $30.6 million during the year ended December 31, 2005 compared to the same
period in 2004. The decrease was primarily due to a decrease in the amount of net proceeds received from refinancing our long-term debt obligations in the current year compared to the net amounts received from the prior years financing
activities combined with an increase in payments for debt financing costs made in connection with the refinancing of our senior credit facility.

The April 1, 2005 refinancing of our senior credit facility provided net cash proceeds of $0.3 million, before the payment of transaction fees and expenses, consisting of gross proceeds obtained under senior credit facility term loans
of $172.7 million and the repayments of previous senior credit facility term and revolving borrowings of $172.4 million. The August 2004 amending of our senior credit facility provided net cash proceeds of $0.7 million, before the payment of
transaction fees and expenses, consisting of gross proceeds obtained under senior credit facility term loans of $152.0 million and the repayments of previous senior credit facility term and revolving borrowings of $151.3 million. The net amount of
cash received from financing activities for the year ended December 31, 2004 was primarily the result of additional borrowings under our senior credit facility revolving loan of $30.5 million and senior credit facility term loan repayments of
$1.5 million.

Although our senior credit facility now allows for the payment of cash dividends, we do not currently intend to declare or
pay a cash dividend.

Future Sources of Financing and Debt Service Requirements

As of December 31, 2005, we had debt of $172.3 million, which represented 206.9% of our total capitalization. Our high level of debt requires that a
substantial portion of cash flow be dedicated to pay principal and interest on debt which will reduce the funds available for working capital, capital expenditures, acquisitions and other general corporate purposes.

The following table summarizes the approximate aggregate amount of principal indebtedness scheduled to mature for the periods referenced as of
December 31, 2005:



|                                  |  |       |         |                |   |           |  |           |       |            |   |       |  |   |        
|--------------------------------- |  | ----- | ------- | -------------- | - | --------- |  | --------- | ----- | ---------- | - | ----- |  | - | -------
|                                  |  | Total |         | 2006           |   | 2007-2008 |  | 2009-2010 |       | Thereafter
|                                  |  |       |         | (in thousands) |   |          
|Mission senior credit facility(1) |  | $     | 172,268 |                | $ | 1,727     |  | $         | 3,454 |            | $ | 3,454 |  | $ | 163,633

---

|(1) | Quarterly principal payments under our senior credit facility term loan commenced on December 31, 2005.
|--- | -------------------------------------------------------------------------------------------------------

Interest payments on our senior credit facility are generally paid every one to three months and are payable based on the type of interest rate selected.

The terms of our senior credit facility limit, but do not prohibit us from incurring substantial amounts of additional debt in the future.

We do not have any rating downgrade triggers that would accelerate the maturity dates of our debt. However, a downgrade in our credit
rating could adversely affect our ability to renew existing, or obtain access to, new credit facilities in the future and could increase the cost of such facilities.

Collateralization and Guarantees of Debt

Nexstar Broadcasting Group guarantees full payment
of all obligations under our bank credit facility in the event of our default. Similarly, we are a guarantor of Nexstars bank credit facility and the senior subordinated notes issued by Nexstar. The bank credit facilities are collateralized by
a security interest in substantially all the combined assets, excluding FCC licenses, of Nexstar and us. As of December 31, 2005, Nexstar has a maximum commitment of $175.8 million under its bank credit facility, of which $175.4 million of debt
is outstanding, and had issued an aggregate principal amount of $200.0 million of senior subordinated notes.

Debt Covenants

Our bank credit facility agreement does not contain financial covenant ratio requirements, but does provide for default in the
event Nexstar does not adequately comply with all covenants contained in its credit agreement.

Cash Requirements for Digital
Television (DTV) Conversion

It will be expensive to convert our stations from the current analog format to the digital
broadcast format. This conversion required an average initial capital expenditure of approximately $0.2 million per station for low-power transmission of digital signal programming. All of the television stations we own and operate are broadcasting
at least a low-power digital television signal. Digital conversion expenditures were $0.8 million and $32 thousand, respectively, for the years ended December 31, 2005 and 2004.



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##### Table of Contents

##### Index to Financial Statements

We estimate that it will require an average capital expenditure of approximately $1.5 million per station
(for 10 stations) to modify our stations DTV transmitters for full-power digital signal transmission, including costs for the transmitter, transmission line, antenna and installation, and estimated costs for tower upgrades and/or
modifications. We anticipate these expenditures will be funded through available cash on hand and cash generated from operations as incurred in future years. Stations that fail to meet FCCs build-out deadlines, and that have not requested an
extension of the time from the FCC, will lose interference protection for their signals outside their low-power coverage areas. As of December 31, 2005, our stations WUTR, WTVO and WYOU are transmitting full-power digital signals. We filed a
request for extension of time to construct full-power DTV facilities for our top four network affiliates in the top one hundred market stations. The FCC has not yet acted on this request for extension of time.

The FCC also adopted additional Program System and Information Protocol (PSIP) requirements. The equipment and related installation necessary
to meet the PSIP requirements cost approximately $0.4 million in total for our television stations. These expenditures were funded in 2005 through available cash on hand and cash generated from operations.

No Off-Balance Sheet Arrangements

At December 31, 2005, 2004 and 2003, we did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or variable interest entities, which would have
been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. We are, therefore, not materially exposed to any financing, liquidity, market or credit risk that could arise if we
had engaged in such relationships.

Contractual Obligations

The following summarizes our contractual obligations at December 31, 2005, and the effect such obligations are expected to have on our liquidity and
cash flow in future periods:



|                                     |  |                 |         |      |   |             |  |             |        |            |   |        |  |   |        
|------------------------------------ |  | --------------- | ------- | ---- | - | ----------- |  | ----------- | ------ | ---------- | - | ------ |  | - | -------
|                                     |  | Total           |         | 2006 |   | 2007 - 2008 |  | 2009 - 2010 |        | Thereafter
|                                     |  | ( in thousands)
|Senior credit facility               |  | $               | 172,268 |      | $ | 1,727       |  | $           | 3,454  |            | $ | 3,454  |  | $ | 163,633
|Cash interest on debt                |  |                 | 83,114  |      |   | 11,351      |  |             | 24,891 |            |   | 25,235 |  |   | 21,637 
|Broadcast rights current obligations |  |                 | 1,993   |      |   | 1,294       |  |             | 604    |            |   | 95     |  |   |       
|Broadcast rights future commitments  |  |                 | 3,601   |      |   | 409         |  |             | 1,831  |            |   | 1,113  |  |   | 248    
|Capital commitments                  |  |                 | 6,828   |      |   | 1,353       |  |             | 5,475  |            |   |       |  |   |       
|Operating lease obligations          |  |                 | 19,597  |      |   | 1,018       |  |             | 2,163  |            |   | 2,001  |  |   | 14,415 
|                                     |  |                 |         |      |   |             |  |             |        |            |   |        |  |   |        
|Total contractual cash obligations   |  | $               | 287,401 |      | $ | 17,152      |  | $           | 38,418 |            | $ | 31,898 |  | $ | 199,933
|                                     |  |                 |         |      |   |             |  |             |        |            |   |        |  |   |        

Critical Accounting Policies and Estimates

Our financial statements have been prepared in accordance with U.S. GAAP which require us to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. On an ongoing basis, we evaluate our estimates,
including those related to intangible assets, bad debts, broadcast rights, trade and barter, income taxes, commitments and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be
reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates.

For an overview of our significant accounting policies, we refer you to Note 2 to the financial statements in Part IV, Item 15(a) of
this Annual Report on Form 10-K. We believe the following critical accounting policies are those that are the most important to the presentation of our financial statements, affect our more significant estimates and assumptions, and require the most
subjective of complex judgments by management.

Valuation of Intangible Assets

The process of establishing the value of intangible assets and performing our annual impairment testing of goodwill and broadcast licenses (FCC
licenses), requires us to make a significant number of assumptions and estimates in determining a fair value based on the present value of projected future cash flows (discounted cash flows analysis). To assist in this process, we
utilize the services of independent appraisal and valuation consulting firms. The assumptions and estimates required for the discounted cash flows analysis included market revenue share, future market revenue growth, operating profit margins, cash
flow multiples, weighted-average cost of capital, our ability to renew affiliation contracts, among others.

The value of FCC licenses is
determined assuming a hypothetical independent start-up station whose only intangible asset is the FCC license. The value of network affiliation agreements is determined as the difference between the value derived for the hypothetical independent
start-up station and the value derived assuming that the start-up station has a network affiliation.

We test the impairment of goodwill
and FCC licenses annually or whenever events or changes in circumstances indicate that such assets might be impaired. The impairment tests consist of a comparison of the assets fair value, based on a discounted cash flows analysis, to their
carrying amount on a station-by-station basis. The projected future cash flows used to test FCC licenses excludes



32



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##### Table of Contents

##### Index to Financial Statements

network compensation payments. Our estimate of future cash flows may be significantly impacted due to an adverse change
in the advertising marketplace or other economic factors affecting our industry at the time the impairment tests are performed. We completed the annual test of impairment for goodwill and FCC licenses as of December 31, 2005, 2004 and 2003,
which resulted in no impairment being recognized in 2005, 2004 and 2003.

We test network affiliation agreements for recoverability
whenever events or changes in circumstances indicate that their carrying amount may not be recoverable, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. The process
we use for determining the recoverability of network affiliation agreements is subjective and requires us to make estimates and judgments about the cash flows attributable to the network affiliation agreements over their estimated remaining useful
lives. An impairment in the carrying amount of a network affiliation agreement is recognized when the expected future operating cash flow derived from the asset is less than its carrying value.

Allowance for Doubtful Accounts

We provide for allowances for doubtful accounts when necessary for estimated losses resulting from the inability of our customers to make required payments. If the financial condition of our customers were to deteriorate, resulting in an
impairment of their ability to make payments, additional allowances may be required. There was no allowance for doubtful accounts at December 31, 2005 and 2004 since the accounts receivable balance consisted primarily of billings to cable and
satellite carriers for compensation associated with retransmission consent agreements and amounts due from the major television networks under the network affiliation agreements.

Broadcast Rights Assets Carrying Amount

Broadcast rights assets are stated at the lower of unamortized cost or net realizable value. Cash broadcast rights are initially recorded at the amount paid or payable to program distributors for the limited right to
broadcast the distributors programming. Barter broadcast rights are recorded at our estimate of the value of the advertising time exchanged, which approximates the fair value of the programming received. The value of the advertising time
exchanged is estimated by applying average historical rates for specific time periods. Amortization of broadcast rights assets is computed using the straight-line method based on the license period or programming usage, whichever yields the greater
expense. The current portion of broadcast rights assets represents those rights available for broadcast which will be amortized in the succeeding year. When projected future net revenue associated with a program is less than the current carrying
amount of the program broadcast rights due to; for example; poor ratings, we write-down the unamortized cost of the broadcast rights asset to equal the amount of projected future net revenue. If the expected broadcast period was shortened or
cancelled due, for example, to poor ratings, we would be required to write-off the remaining value of the related broadcast rights to operations on an accelerated basis or possibly immediately. As of December 31, 2005, the amounts of our
current broadcast rights and non-current broadcast rights were $2.5 million and $0.7 million, respectively.

Trade and Barter
Transactions

We trade certain advertising time for various goods and services. These transactions are recorded at the estimated
fair value of the goods or services received. We barter advertising time for certain program material. These transactions, except those involving exchange of advertising time for network programming, are recorded at managements estimate of the
value of the advertising time exchanged, which approximates the fair value of the program material received. The value of advertising time exchanged is estimated by applying average historical advertising rates for specific time periods. We recorded
barter revenue of $2.4 million, $2.1 million and $2.1 million for the years ended December 31, 2005, 2004 and 2003, respectively. Trade revenue of $0.3 million and $0.5 million was recorded for the years ended December 31, 2004 and 2003,
respectively. We incurred trade and barter expense of $2.4 million, $2.3 million and $2.5 million for the years ended December 31, 2005, 2004 and 2003, respectively.

Valuation Allowance for Deferred Tax Assets

We record a valuation allowance to reduce our
deferred tax assets to the amount that is likely to be realized. While we have considered future taxable income and feasible tax planning strategies in assessing the need for a valuation allowance, in the event that we were to determine that we
would not be able to realize all or part of our deferred tax assets in the future, an adjustment to the valuation allowance would be charged to income in the period such a determination was made.

Claims and Loss Contingencies

In the normal course of business, we are party to various claims and legal proceedings. We record a liability for these matters when an adverse outcome is probable and the amount of loss is reasonably estimated. We consider a combination of
factors when estimating probable losses, including judgments about potential actions by counter parties.

Recent Accounting Pronouncements

In December 2004, the FASB issued Statement of Financial Accounting Standards No. 153, Exchanges of Nonmonetary Assets,
an amendment of APB Opinion No. 29 (SFAS No. 153). The amendments made by SFAS No. 153 require that exchanges of



33



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##### Table of Contents

##### Index to Financial Statements

nonmonetary assets be accounted for at fair value of the assets exchanged, unless the exchange lacks commercial
substance. A nonmonetary exchange has commercial substance when the future cash flows of the entity are expected to change significantly as a result of the exchange. This new Standard eliminates a provision in APB Opinion No. 29 that exempted
nonmonetary exchanges of similar productive assets from fair value accounting. SFAS No. 153 is effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Therefore, SFAS No. 153 was effective
for the Company on July 1, 2005. The adoption of this new Standard did not have a material impact on the Companys financial position or results of operations.

In March 2005, the FASB issued Financial Interpretation No. 47, Accounting for Conditional Asset Retirement Obligations, an interpretation of FASB Statement No. 143 (FIN
No. 47). FIN No. 47 clarifies that an entity must record a liability for a conditional asset retirement obligation if the fair value of the obligation can be reasonably estimated. A conditional asset retirement obligation is a term
used in Statement of Financial Accounting Standards No. 143, Accounting for Asset Retirement Obligations, that refers to a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are
conditional on a future event that may or may not be within the control of the entity. FIN No. 47 is effective no later than the end of fiscal years ending after December 15, 2005, which is the Companys current fiscal year ending
December 31, 2005. The adoption of FIN No. 47 did not have any material impact on the Companys financial position or results of operations.

In May 2005, the FASB issued Statement of Financial Accounting Standards No. 154, Accounting Changes and Error Corrections - a replacement of APB No. 20 and FASB Statement No. 3 (SFAS
No. 154). SFAS No. 154 requires entities that voluntarily make a change in accounting principle to apply that change retrospectively to all prior period financial statements as if the principle had always been used, unless it is
impracticable to determine either the period-specific effects or the cumulative effect of the change. Previously under APB Opinion No. 20, Accounting Changes, most voluntary changes in accounting principle were recognized by
including in net income of the period of change the cumulative effect of changing to the new accounting principle. In addition to voluntary changes, this new Standard establishes retrospective application as the required method for adopting a newly
issued accounting pronouncement when the pronouncement does not include specific transition provisions. SFAS No. 154 also requires that a change in method of depreciation, amortization, or depletion for long-lived, nonfinancial assets, be
accounted for as a change in accounting estimate affected by a change in accounting principle, the effects of which are to be applied prospectively in the period of change and future periods. This Statement also makes a distinction between
retrospective application of an accounting principle and the restatement of financial statements to reflect the correction of an error. SFAS No. 154 applies to accounting changes and error corrections that are made in
fiscal years beginning after December 15, 2005. The Company will adopt the provisions of SFAS No. 154, as applicable, beginning in fiscal 2006.

In February 2006, the FASB issued Statement of Financial Accounting Standards No. 155, Accounting for Hybrid Financial Instruments  an amendment to of FASB Statements No. 133 and 140 (SFAS
No. 155). SFAS No. 155 provides a fair value measurement option for certain hybrid financial instruments that contain an embedded derivative that otherwise would require bifurcation. Under SFAS No. 155, an entity must
irrevocably elect, on an instrument-by-instrument basis, to apply fair value accounting to a hybrid financial instrument in its entirety in lieu of separately accounting for the instrument as a host contract and derivative instrument. Additionally,
SFAS No. 155 clarifies that both interest-only and principal-only strips are not subject to the provision of SFAS No. 133 and establishes a requirement to evaluate interests in securitized financial assets to identify interests that are
freestanding versus those that are embedded derivatives. SFAS No. 155 is effective for all financial instruments acquired or issued after the beginning of an entitys first fiscal year that begins after September 15, 2006, which for
the Company is January 1, 2007. Earlier adoption is permitted as of the beginning of an entitys fiscal year. The Company will adopt the provisions of SFAS No. 155 beginning in fiscal 2007. The Company does not intend to issue or
acquire the hybrid included in the scope of SFAS No. 155 and does not expect the adoption of this Statement to have a material impact on the Companys financial position or results of operations.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate
Risk

Our exposure to market risk for changes in interest rates relates primarily to our long-term debt obligations.

All borrowings at December 31, 2005 under our senior credit facility bear interest at 6.28%, which represented the base rate, or
LIBOR, plus the applicable margin, as defined. Interest is payable in accordance with the credit agreement.

The following table estimates
the changes to cash flow from operations as of December 31, 2005 if interest rates were to fluctuate by 100 or 50 basis points, or BPS (where 100 basis points represents one percentage point), for a twelve-month period:



|                       |         |                        |        |                            |   |                        |  |         |        |  |   |        |  |   |       
|---------------------- | ------- | ---------------------- | ------ | -------------------------- | - | ---------------------- |  | ------- | ------ |  | - | ------ |  | - | ------
|                       |         | Interest rate decrease |        | No change to interest rate |   | Interest rate increase
|                       |         |                       
|                       | 100 BPS |                        | 50 BPS |                            |   | 50 BPS                 |  | 100 BPS
|                       |         |                        |        | (in thousands)             |   |                       
|Senior credit facility |         | $                      | 9,096  |                            | $ | 9,957                  |  | $       | 10,818 |  | $ | 11,680 |  | $ | 12,541

Given the interest rates that were in effect at December 31, 2004, as of that date, we
estimated that our cash flows from operations would have increased by approximately $1.7 million and $0.9 million, respectively, for a 100 BPS and 50 BPS interest rate decrease, and decreased by approximately $0.9 million and $1.7 million,
respectively, for a 50 BPS and 100 BPS interest rate increase.



34



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##### Index to Financial Statements

Impact of Inflation

We believe that our results of operations are not affected by moderate changes in the inflation rate.

Item 8. Financial Statements and Supplementary Data

Our Financial Statements are filed with this report.
The Financial Statements and supplementary data are included in Part IV, Item 15(a) of this Annual Report on Form 10-K.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures. Mission
carried out an evaluation as of the end of the period covered in this report, under the supervision and with the participation of Missions management, including Missions president and treasurer (who is Missions principal executive
officer and principal financial and accounting officer), of the effectiveness of the design and operation of Missions disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(d) and 15d-15(e) under the Securities Exchange Act of
1934. Based upon that evaluation, Missions president and treasurer (its principal executive officer and principal financial and accounting officer) concluded that Missions disclosure controls and procedures (1) were effective in
timely alerting him to material information relating to Mission required to be included in Missions periodic SEC filings and (2) were adequate to ensure that information required to be disclosed by Mission in the reports filed or
submitted by Mission under the Securities Exchange Act of 1934 is recorded, processed and summarized and reported within the time periods specified in the SECs rules and forms.

(b) Changes in Internal Control over Financial Reporting. There have been no changes in Missions internal control over financial reporting
identified in connection with the evaluation described in paragraph (a) above that have materially affected or are reasonably likely to materially affect Missions internal control over financial reporting.

Item 9B. Other Information

None.



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##### Index to Financial Statements

PART III

Item 10. Directors and Executive Officers of the Registrant

The table below sets forth information about
Missions director and executive officers:



|                |  |     |  |                                                     
|--------------- |  | --- |  | ----------------------------------------------------
|Name            |  | Age |  | Position With Company                               
|David S. Smith  |  | 50  |  | President, Treasurer and Director                   
|Nancie J. Smith |  | 52  |  | Vice President and Secretary                        
|Dennis Thatcher |  | 58  |  | Executive Vice President and Chief Operating Officer

David S. Smith has served as Missions President and Treasurer since December 1997.
Prior to that, Mr. Smith was the General Manager of WSTR television in Cincinnati, Ohio from 1990 to 1995. He is currently an ordained Evangelical Lutheran Church of America pastor at St. Paul Lutheran Church in Sharon Center, Ohio.

Nancie J. Smith has served as Missions Vice President and Secretary since December 1997. Nancie J. Smith is married to David S. Smith.

Dennis Thatcherhas served as Executive Vice President and Chief Operating Officer since October 2004. From November 2003 to March
2004, Mr. Thatcher served as Regional Market Manager for United Media Partners. From November 2002 to October 2003, Mr. Thatcher served as General Sales Manager of KZTV for Eagle Creek Broadcasting. From July 2000 to October 2002,
Mr. Thatcher pursued personal interests. From April 1998 to June 2000, Mr. Thatcher served as Senior Vice President and Central Regional Manager for Paxson Communications.

Code of Ethics

Our sole director adopted a code of ethics that applies to our chief executive
officer, chief financial officer, other executive officers and directors, or persons performing similar functions. The purpose of the code of ethics is to promote honest and ethical conduct, including the ethical handling of actual or apparent
conflicts of interest between personal and professional relationships, to promote full, fair, accurate, timely and understandable disclosure in periodic reports required to be filed by us, and to promote compliance with all applicable rules and
regulations that apply to us and our officers and directors. The code of ethics is filed hereby as Exhibit 14.1 to this Annual report on Form 10-K. Any amendments to or waivers from a provision of this code of ethics will be filed on a Current
Report on Form 8-K.

Item 11. Executive Compensation

The following table sets for the compensation earned or awarded for
services rendered to our executive officers for the fiscal years ended December 31, 2005, 2004 and 2003.

Summary Compensation Table



|                                                     |  |                |     |       |                     |       |                          |  |   |  |  
|---------------------------------------------------- |  | -------------- | --- | ----- | ------------------- | ----- | ------------------------ |  | - |  | -
|                                                     |  | FiscalYear     |     |       | Annual Compensation |       | All OtherCompensation(1)
|                                                     |  | Salary         |     | Bonus |                     | Other |                         
|                                                     |  | (in thousands)
|David S. Smith                                       |  | 2005           |     |       | 250,115             |       | 105,000                  |  |  |  | 
|President, Treasurer and Director                    |  | 2004           |     |       | 330,000             |       |                         |  |  |  | 
|                                                     |  | 2003           |     |       | 248,987             |       |                         |  |  |  | 
|                                                     |  |                |     |       |                    
|Nancie J. Smith                                      |  | 2005           |     |       | 6,240               |       |                         |  |  |  | 
|Vice President and Secretary                         |  | 2004           |     |       | 6,240               |       |                         |  |  |  | 
|                                                     |  | 2003           |     |       | 6,480               |       |                         |  |  |  | 
|                                                     |  |                |     |       |                    
|Dennis Thatcher                                      |  | 2005           |     |       | 85,000              |       | 15,000                   |  |  |  | 
|Executive Vice President and Chief Operating Officer |  | 2004           | (2) |       | 21,250              |       |                         |  |  |  | 
|                                                     |  |                |     |       |                    
|John Dittmeier                                       |  | 2004           | (3) |       | 184,312             |       |                         |  |  |  | 
|Executive Vice President and Chief Operating Officer |  | 2003           |     |       | 177,453             |       | 19,000                   |  |  |  | 

---

|(1) | Represents as to all executive officers the value of the personal use of automobiles.
|--- | -------------------------------------------------------------------------------------

|(2) | Became Executive Vice President and Chief Operating Officer effective October 1, 2004.
|--- | --------------------------------------------------------------------------------------

|(3) | Resigned as Executive Vice President and Chief Operating Officer effective September 30, 2004.
|--- | ----------------------------------------------------------------------------------------------



36



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##### Table of Contents

##### Index to Financial Statements

Employment Agreements

We are a party to a management agreement with David S. Smith and Nancie J. Smith. Under this agreement, David S. Smith is paid up to $0.375 million per year for certain management services and Nancie J. Smith is paid
by the hour for certain management services.

Item 12. Security Ownership of Certain Beneficial Owners and Management

David S. Smith owns 100% of the
equity interests in Mission, which comprises 1,000 shares of common stock.

Item 13. Certain Relationships and Related Transactions

The following table summarizes the various local
service agreements Mission had in effect with Nexstar as of December 31, 2005:



|                |  |                              |  |             |  |                   |  |            |  |                                                                               
|--------------- |  | ---------------------------- |  | ----------- |  | ----------------- |  | ---------- |  | ------------------------------------------------------------------------------
|Station         |  | Market                       |  | Affiliation |  | Type of Agreement |  | Expiration |  | Consideration received from or paid to Nexstar                                
|WFXP            |  | Erie, PA                     |  | Fox         |  | TBA               |  | 8/16/06    |  | Monthly payments received from Nexstar(1)                                     
|                |  |                              |  |             | 
|KJTL and        |  | Wichita Falls, TX-Lawton, OK |  | Fox         |  | SSA               |  | 5/31/09    |  | $70 thousand per month paid to Nexstar                                        
|KJBO-LP         |  |                              |  | UPN         |  | JSA               |  | 5/31/09    |  | 70% of the KJTL/KJBO-LP net revenue collected each month received from Nexstar
|                |  |                              |  |             | 
|WYOU            |  | Wilkes Barre-Scranton, PA    |  | CBS         |  | SSA               |  | 1/4/08     |  | $200 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 9/30/14    |  | 70% of the WYOU net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|KODE            |  | Joplin, MO-Pittsburg, KS     |  | ABC         |  | SSA               |  | 3/31/12    |  | $100 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 9/30/14    |  | 70% of the KODE net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|KRBC            |  | Abilene-Sweetwater, TX       |  | NBC         |  | SSA               |  | 6/12/13    |  | $100 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 6/30/14    |  | 70% of the KRBC net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|KSAN            |  | San Angelo, TX               |  | NBC         |  | SSA               |  | 5/31/14    |  | $50 thousand per month paid to Nexstar                                        
|                |  |                              |  |             |  | JSA               |  | 5/31/14    |  | 70% of the KSAN net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|WFXW            |  | Terre Haute, IN              |  | Fox         |  | SSA               |  | 5/8/13     |  | $10 thousand per month paid to Nexstar                                        
|(formerly WBAK) |  |                              |  |             |  | JSA               |  | 5/8/13     |  | 70% of the WFXW net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|KCIT and        |  | Amarillo, TX                 |  | Fox         |  | SSA               |  | 4/30/09    |  | $60 thousand per month paid to Nexstar                                        
|KCPN-LP         |  |                              |  |            |  | JSA               |  | 4/30/09    |  | 70% of the KCIT/KCPN-LP net revenue collected each month received from Nexstar
|                |  |                              |  |             | 
|KHMT            |  | Billings, MT                 |  | Fox         |  | TBA               |  | 12/13/09   |  | Monthly payments received from Nexstar(1)                                     
|                |  |                              |  |             | 
|KAMC            |  | Lubbock, TX                  |  | ABC         |  | SSA               |  | 2/15/09    |  | $100 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 2/15/09    |  | 70% of the KAMC net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|KOLR            |  | Springfield, MO              |  | CBS         |  | SSA               |  | 2/15/09    |  | $150 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 2/15/09    |  | 70% of the KOLR net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|WUTR            |  | Utica, NY                    |  | ABC         |  | SSA               |  | 3/31/14    |  | $10 thousand per month paid to Nexstar                                        
|                |  |                              |  |             |  | JSA               |  | 3/31/14    |  | 70% of the WUTR net revenue collected each month received from Nexstar        
|                |  |                              |  |             | 
|WTVO            |  | Rockford, IL                 |  | ABC         |  | SSA               |  | 10/31/14   |  | $100 thousand per month paid to Nexstar                                       
|                |  |                              |  |             |  | JSA               |  | 10/31/14   |  | 70% of the WTVO net revenue collected each month received from Nexstar        

---

|(1) | Payments are variable based on stations monthly operating expenses.
|--- | --------------------------------------------------------------------

Under these agreements, Mission is responsible for certain operating expenses of its stations and therefore may have unlimited exposure to any potential operating losses. Mission will continue to operate its stations
under the SSAs and JSAs or TBAs until the termination of such agreements. The SSAs and JSAs generally have a term of ten years. Nexstar indemnifies Mission from Nexstars activities pursuant to the local service agreements.



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##### Index to Financial Statements

The table below presents the revenue associated with the local service agreements Missions stations
have with Nexstar.



|             |  |                          |  |                |        |      |   |        |  |   |       
|------------ |  | ------------------------ |  | -------------- | ------ | ---- | - | ------ |  | - | ------
|Station      |  | Type of Agreement        |  | 2005           |        | 2004 |   | 2003  
|             |  |                          |  | (in thousands)
|KJTL/KJBO    |  | Joint Sales Agreement    |  | $              | 1,908  |      | $ | 1,984  |  | $ | 1,637 
|WFXP         |  | Time Brokerage Agreement |  |                | 151    |      |   | 142    |  |   | 143   
|KHMT         |  | Time Brokerage Agreement |  |                | 331    |      |   | 319    |  |   |      
|WFXW         |  | Joint Sales Agreement(1) |  |                | 950    |      |   | 995    |  |   | 77    
|KOLR         |  | Joint Sales Agreement    |  |                | 7,071  |      |   | 8,172  |  |   | 3,627 
|KCIT/KCPN-LP |  | Joint Sales Agreement    |  |                | 1,834  |      |   | 1,754  |  |   | 1,807 
|KAMC         |  | Joint Sales Agreement    |  |                | 2,652  |      |   | 2,386  |  |   | 2,913 
|WUTR         |  | Joint Sales Agreement(2) |  |                | 996    |      |   | 690    |  |   |      
|KSAN         |  | Joint Sales Agreement(3) |  |                | 676    |      |   | 429    |  |   |      
|WTVO         |  | Joint Sales Agreement(4) |  |                | 3,358  |      |   | 611    |  |   |      
|KRBC         |  | Joint Sales Agreement(5) |  |                | 1,152  |      |   | 1,101  |  |   |      
|KODE         |  | Joint Sales Agreement(6) |  |                | 2,379  |      |   | 879    |  |   |      
|WYOU         |  | Joint Sales Agreement(6) |  |                | 4,683  |      |   | 1,724  |  |   |      
|             |  |                          |  |                |        |      |   |        |  |   |       
|             |  | Total                    |  | $              | 28,141 |      | $ | 21,186 |  | $ | 10,204
|             |  |                          |  |                |        |      |   |        |  |   |       

---

|(1) | JSA became effective on May 9, 2003 and was amended on January 13, 2004.
|--- | ------------------------------------------------------------------------

|(2) | JSA became effective on April 1, 2004.
|--- | --------------------------------------

|(3) | JSA became effective on June 1, 2004.
|--- | -------------------------------------

|(4) | JSA became effective on November 1, 2004.
|--- | -----------------------------------------

|(5) | JSA became effective on July 1, 2004.
|--- | -------------------------------------

|(6) | JSA became effective on October 1, 2004.
|--- | ----------------------------------------

The table
below presents the expense associated with the local service agreements Missions stations have with Nexstar.



|             |  |                              |  |                |        |      |   |        |  |   |      
|------------ |  | ---------------------------- |  | -------------- | ------ | ---- | - | ------ |  | - | -----
|Station      |  | Type of Agreement            |  | 2005           |        | 2004 |   | 2003  
|             |  |                              |  | (in thousands)
|WYOU         |  | Shared Services Agreement(1) |  | $              | 2,400  |      | $ | 3,000  |  | $ | 3,000
|KODE         |  | Shared Services Agreement(2) |  |                | 1,200  |      |   | 1,897  |  |   | 1,929
|WFXW         |  | Shared Services Agreement(3) |  |                | 120    |      |   | 1,200  |  |   |     
|KRBC         |  | Shared Services Agreement(4) |  |                | 1,200  |      |   | 1,450  |  |   | 980  
|KSAN         |  | Shared Services Agreement(4) |  |                | 600    |      |   | 350    |  |   |     
|KJTL/KJBO    |  | Shared Services Agreement    |  |                | 840    |      |   | 840    |  |   |     
|KCIT/KCPN-LP |  | Shared Services Agreement    |  |                | 720    |      |   | 720    |  |   |     
|WTVO         |  | Shared Services Agreement    |  |                | 1,200  |      |   | 20     |  |   |     
|KAMC         |  | Shared Services Agreement    |  |                | 1,200  |      |   | 1,800  |  |   |     
|KOLR         |  | Shared Services Agreement    |  |                | 1,800  |      |   | 1,800  |  |   |     
|WUTR         |  | Shared Services Agreement(5) |  |                | 120    |      |   | 90     |  |   |     
|             |  |                              |  |                |        |      |   |        |  |   |      
|             |  | Total                        |  | $              | 11,400 |      | $ | 13,167 |  | $ | 5,909
|             |  |                              |  |                |        |      |   |        |  |   |      

---

|(1) | SSA became effective on January 5, 1998.
|--- | ----------------------------------------

|(2) | SSA became effective on April 1, 2002.
|--- | --------------------------------------

|(3) | SSA became effective on May 9, 2003 and was amended on January 13, 2004.
|--- | ------------------------------------------------------------------------

|(4) | SSA became effective on June 13, 2003.
|--- | --------------------------------------

|(5) | SSA became effective on April 1, 2004.
|--- | --------------------------------------



38



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##### Index to Financial Statements

Option Agreements

In consideration of Nexstars guarantee of our indebtedness, Nexstar has options to purchase the assets of all of our stations, subject to prior FCC approval. Our owner, David S. Smith, is a party to these option
agreements. David S. Smith is not related in any way to David D. Smith, the chief executive officer of Sinclair Broadcast Group.

The
following table summarizes the option agreements Mission and David S. Smith have in effect with Nexstar as of December 31, 2005:



|                     |  |                              |  |                 |  |          |  |         
|-------------------- |  | ---------------------------- |  | --------------- |  | -------- |  | --------
|                     |  | Date of Execution            |  | Expiration Date
|Station              |  | Market                       |  | Affiliation     |  |         
|WFXP                 |  | Erie, PA                     |  | Fox             |  | 12/1/05  |  | 12/1/14 
|KJTL and             |  | Wichita Falls, TX-Lawton, OK |  | Fox             |  | 6/1/99   |  | 6/1/08  
|KJBO-LP              |  |                              |  | UPN             |  | 6/1/99   |  | 6/1/08  
|WYOU                 |  | Wilkes Barre-Scranton, PA    |  | CBS             |  | 5/19/98  |  | 5/19/08 
|KODE                 |  | Joplin, MO-Pittsburg, KS     |  | ABC             |  | 4/24/02  |  | 4/24/11 
|KRBC                 |  | Abilene-Sweetwater, TX       |  | NBC             |  | 6/13/03  |  | 6/13/12 
|KSAN                 |  | San Angelo, TX               |  | NBC             |  | 6/13/03  |  | 6/13/12 
|WFXW (formerly WBAK) |  | Terre Haute, IN              |  | Fox             |  | 5/9/03   |  | 5/9/12  
|KCIT and             |  | Amarillo, TX                 |  | Fox             |  | 5/1/99   |  | 5/1/08  
|KCPN-LP              |  |                              |  |                |  | 5/1/99   |  | 5/1/08  
|KHMT                 |  | Billings, MT                 |  | Fox             |  | 12/30/03 |  | 12/30/12
|KAMC                 |  | Lubbock, TX                  |  | ABC             |  | 12/30/03 |  | 12/30/12
|KOLR                 |  | Springfield, MO              |  | CBS             |  | 12/30/03 |  | 12/30/12
|WUTR                 |  | Utica, NY                    |  | ABC             |  | 4/1/04   |  | 4/1/13  
|WTVO                 |  | Rockford, IL                 |  | ABC             |  | 11/1/04  |  | 11/1/13 

Under the terms of these option agreements, Nexstar may exercise its option upon written notice to
us and David S. Smith. In each option agreement, the exercise price is the greater of (1) seven times the stations 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. We and/or David S. Smith may terminate each option agreement by written notice any time after the seventh anniversary date of the relevant option agreement.

Management Agreement

Mission,
David S. Smith and Nancie J. Smith, the wife of David S. Smith, are parties to a compensation agreement. Under this agreement, Mission pays David S. Smith up to $0.375 million per year for certain management services and pays Nancie J. Smith by the
hour for certain management services.



39



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##### Table of Contents

##### Index to Financial Statements

Item 14. Principal Accountant Fees and Services

In addition to retaining PricewaterhouseCoopers LLP to
audit the financial statements of Mission Broadcasting, Inc. for the fiscal year ended December 31, 2005, and review the financial statements included in each of Mission Broadcasting, Inc. Quarterly Reports on Form 10-Q during such fiscal year,
Mission Broadcasting, Inc. retained PricewaterhouseCoopers LLP to provide due diligence services, audit certain acquired stations, and tax compliance matters. The aggregate fees billed for professional services rendered by PricewaterhouseCoopers LLP
in fiscal years 2005 and 2004 for these various services were:



|                      |  |                   |         |                   |   |        
|--------------------- |  | ----------------- | ------- | ----------------- | - | -------
|Type of Fees          |  | Fiscal Year Ended
|                      |  | December 31, 2005 |         | December 31, 2004
|Audit Fees(1)         |  | $                 | 72,750  |                   | $ | 65,000 
|Audit Related Fees(2) |  |                   |        |                   |   |       
|Tax Fees(3)           |  |                   | 48,000  |                   |   | 51,600 
|All Other Fees(4)     |  |                   |        |                   |   |       
|                      |  |                   |         |                   |   |        
|Total                 |  | $                 | 120,750 |                   | $ | 116,600
|                      |  |                   |         |                   |   |        

---

|(1) | Audit Fees are fees billed by PricewaterhouseCoopers LLP for professional services for the audit of the financial statements included in our Annual Report on Form 10-K
and review of financial statements included in our Quarterly Reports on Form 10-Q, or for services that are normally provided by the auditors in connection with statutory and regulatory filings or engagements.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Audit Related Fees are fees billed by PricewaterhouseCoopers LLP for assurance and related services that are reasonably related to the performance of the audit or review
of our financial statements.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Tax Fees are fees billed by PricewaterhouseCoopers LLP for tax compliance, tax advice and tax planning.
|--- | ---------------------------------------------------------------------------------------------------------

|(4) | All Other Fees are fees billed by PricewaterhouseCoopers LLP for any services not included in the first three categories. Amount represents fees incurred to audit
acquired company financial statements.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

David S. Smith, as the sole director of Missions Board of Directors,
preapproves audit services and permitted non-audit services. All other audit related tax and other fees will be approved by David S. Smith prospectively.



40



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##### Table of Contents

##### Index to Financial Statements

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a) Documents filed as part of this report:

(1) Financial Statements. The following financial statements of Mission Broadcasting, Inc. have been included on pages F-1
through F-27 of this Annual Report on Form 10-K:



| |  |  | See the Index to the Financial Statements on page F-1 for a list of financial statements filed with this report.
| | - |  | ----------------------------------------------------------------------------------------------------------------

(2)Financial Statement Schedules. The schedule of Valuation and Qualifying Accounts appears in Note 13 to the financial statements filed as
a part of this report.

(3)Exhibits. The exhibits filed in response to Item 601 of Regulation S-K are listed in the
Exhibit Index beginning on page E-1 of this Annual Report on Form 10-K.



41



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##### Index to Financial Statements

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.





Mission Broadcasting, Inc./s/ DAVID S. SMITHBy: Its:

David S. Smith President and Treasurer (Principal Executive Officer and Principal Financial and Accounting
Officer)


Dated: March 31, 2006

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following person on behalf of the registrant and
in the capacities indicated on March 31, 2006.



|                   |  |                                                                             
|------------------ |  | ----------------------------------------------------------------------------
|Name               |  | Title                                                                       
|/s/ David S. Smith |  | President, Treasurer and Director                                           
|David S. Smith     |  | (Principal Executive Officer and Principal Financial and Accounting Officer)



42



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##### Index to Financial Statements

MISSION BROADCASTING, INC.

INDEX TO FINANCIAL STATEMENTS



|                                                                                                    |  |    
|--------------------------------------------------------------------------------------------------- |  | ---
|Report of Independent Registered Public Accounting Firm                                             |  | F-2
|                                                                                                    | 
|Balance Sheets at December 31, 2005 and 2004                                                        |  | F-3
|                                                                                                    | 
|Statements of Operations for the years ended December 31, 2005, 2004 and 2003                       |  | F-4
|                                                                                                    | 
|Statements of Changes in Shareholders Deficit for the years ended December 31, 2005, 2004 and 2003 |  | F-5
|                                                                                                    | 
|Statements of Cash Flows for the years ended December 31, 2005, 2004 and 2003                       |  | F-6
|                                                                                                    | 
|Notes to Financial Statements                                                                       |  | F-7



F-1



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##### Table of Contents

##### Index to Financial Statements

Report of Independent Registered Public Accounting Firm

To the Shareholder of Mission
Broadcasting, Inc.:

In our opinion, the accompanying balance sheets and the related statements of operations, changes in shareholders
deficit and cash flows present fairly, in all material respects, the financial position of Mission Broadcasting, Inc. (the Company) at December 31, 2005 and 2004, and the results of its operations and its cash flows for each of the
three years in the period ended December 31, 2005 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

The Company has a significant relationship with Nexstar Broadcasting, Inc. which is discussed in Notes 1, 2, 4, 7, and 11 to the financial
statements.

/s/ PricewaterhouseCoopers LLP

Dallas, Texas

March 31, 2006



F-2



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

BALANCE SHEETS

December 31, 2005 and 2004

(in thousands, except share information)



|                                                                                                                                            |  |      |         |   |      |   |         |  
|------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | -
|                                                                                                                                            |  | 2005 |         |   | 2004 |  
|ASSETS                                                                                                                                      |  |      |         |   |      |   |         |  
|Current assets:                                                                                                                             |  |      |         |   |      |   |         |  
|Cash and cash equivalents                                                                                                                   |  | $    | 1,404   |   |      | $ | 6,981   |  
|Accounts receivable, net of allowance for doubtful accounts of $0 and $0, respectively                                                      |  |      | 356     |   |      |   | 415     |  
|Current portion of broadcast rights                                                                                                         |  |      | 2,489   |   |      |   | 3,701   |  
|Prepaid expenses and other current assets                                                                                                   |  |      | 123     |   |      |   | 142     |  
|                                                                                                                                            |  |      |         |   |      |   |         |  
|Total current assets                                                                                                                        |  |      | 4,372   |   |      |   | 11,239  |  
|                                                                                                                                            |  |     
|Property and equipment, net                                                                                                                 |  |      | 21,102  |   |      |   | 22,574  |  
|Broadcast rights                                                                                                                            |  |      | 730     |   |      |   | 1,700   |  
|FCC licenses                                                                                                                                |  |      | 28,736  |   |      |   | 28,736  |  
|Goodwill                                                                                                                                    |  |      | 16,651  |   |      |   | 16,307  |  
|Other intangible assets, net                                                                                                                |  |      | 47,597  |   |      |   | 53,707  |  
|Other noncurrent assets                                                                                                                     |  |      | 616     |   |      |   | 631     |  
|                                                                                                                                            |  |      |         |   |      |   |         |  
|Total assets                                                                                                                                |  | $    | 119,804 |   |      | $ | 134,894 |  
|                                                                                                                                            |  |      |         |   |      |   |         |  
|LIABILITIES AND SHAREHOLDERS DEFICIT                                                                                                       |  |      |         |   |      |   |         |  
|Current liabilities:                                                                                                                        |  |      |         |   |      |   |         |  
|Current portion of debt                                                                                                                     |  | $    | 1,727   |   |      | $ | 1,520   |  
|Current portion of broadcast rights payable                                                                                                 |  |      | 2,669   |   |      |   | 4,044   |  
|Accounts payable                                                                                                                            |  |      | 21      |   |      |   | 108     |  
|Accrued expenses                                                                                                                            |  |      | 508     |   |      |   | 884     |  
|Taxes payable                                                                                                                               |  |      |        |   |      |   | 14      |  
|Interest payable                                                                                                                            |  |      | 61      |   |      |   | 21      |  
|Deferred revenue                                                                                                                            |  |      | 577     |   |      |   | 192     |  
|Due to Nexstar Broadcasting, Inc.                                                                                                           |  |      | 22,215  |   |      |   | 20,922  |  
|                                                                                                                                            |  |      |         |   |      |   |         |  
|Total current liabilities                                                                                                                   |  |      | 27,778  |   |      |   | 27,705  |  
|Debt                                                                                                                                        |  |      | 170,541 |   |      |   | 171,220 |  
|Broadcast rights payable                                                                                                                    |  |      | 958     |   |      |   | 1,997   |  
|Deferred tax liabilities                                                                                                                    |  |      | 4,490   |   |      |   | 3,163   |  
|Deferred revenue                                                                                                                            |  |      | 126     |   |      |   |        |  
|Deferred gain on sale of assets                                                                                                             |  |      | 2,431   |   |      |   | 2,604   |  
|Other liabilities                                                                                                                           |  |      | 2,491   |   |      |   | 2,273   |  
|                                                                                                                                            |  |      |         |   |      |   |         |  
|Total liabilities                                                                                                                           |  |      | 208,815 |   |      |   | 208,962 |  
|                                                                                                                                            |  |      |         |   |      |   |         |  
|Commitments and contingencies                                                                                                               |  |      |         |   |      |   |         |  
|                                                                                                                                            |  |     
|Minority interest in consolidated entity                                                                                                    |  |      |        |   |      |   | 5,719   |  
|                                                                                                                                            |  |      |         |   |      |   |         |  
|Shareholders deficit:                                                                                                                      |  |      |         |   |      |   |         |  
|Common stock, $1 dollar par value, 1,000 shares authorized; 1,000 shares issued and outstanding at December 31, 2005 and 2004,
respectively |  |      | 1       |   |      |   | 1       |  
|Subscription receivable                                                                                                                     |  |      | (1      | ) |      |   | (1      | )
|Accumulated deficit                                                                                                                         |  |      | (89,011 | ) |      |   | (79,787 | )
|                                                                                                                                            |  |      |         |   |      |   |         |  
|Total shareholders deficit                                                                                                                 |  |      | (89,011 | ) |      |   | (79,787 | )
|                                                                                                                                            |  |      |         |   |      |   |         |  
|Total liabilities and shareholders deficit                                                                                                 |  | $    | 119,804 |   |      | $ | 134,894 |  
|                                                                                                                                            |  |      |         |   |      |   |         |  

The accompanying notes are an integral part of these financial statements.



F-3



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

STATEMENTS OF OPERATIONS

For the Years Ended December 31, 2005, 2004 and 2003

(in thousands)



|                                                                                                                  |  |      |        |   |      |   |        |      |  |   |         |  
|----------------------------------------------------------------------------------------------------------------- |  | ---- | ------ | - | ---- | - | ------ | ---- |  | - | ------- | -
|                                                                                                                  |  | 2005 |        |   | 2004 |   |        | 2003 | 
|Net broadcast revenue (including trade and barter)                                                                |  | $    | 4,959  |   |      | $ | 15,323 |      |  | $ | 18,242  |  
|Revenue from Nexstar Broadcasting, Inc.                                                                           |  |      | 28,141 |   |      |   | 21,186 |      |  |   | 10,204  |  
|                                                                                                                  |  |      |        |   |      |   |        |      |  |   |         |  
|Net revenue                                                                                                       |  |      | 33,100 |   |      |   | 36,509 |      |  |   | 28,446  |  
|                                                                                                                  |  |      |        |   |      |   |        |      |  |   |         |  
|Operating expenses (income):                                                                                      |  |      |        |   |      |   |        |      |  |   |         |  
|Direct operating expenses (exclusive of depreciation and amortization shown separately below)                     |  |      | 4,444  |   |      |   | 4,108  |      |  |   | 4,611   |  
|Selling, general, and administrative expenses (exclusive of depreciation and amortization shown separately below) |  |      | 2,232  |   |      |   | 4,406  |      |  |   | 6,040   |  
|Local service agreement fees associated with Nexstar Broadcasting, Inc.                                           |  |      | 11,400 |   |      |   | 13,167 |      |  |   | 5,909   |  
|Gain on asset disposal, net                                                                                       |  |      | (79    | ) |      |   | (170   | )    |  |   | (269    | )
|Amortization of broadcast rights                                                                                  |  |      | 4,408  |   |      |   | 4,579  |      |  |   | 4,126   |  
|Amortization of intangible assets                                                                                 |  |      | 6,109  |   |      |   | 5,492  |      |  |   | 5,929   |  
|Depreciation                                                                                                      |  |      | 2,809  |   |      |   | 2,572  |      |  |   | 3,570   |  
|                                                                                                                  |  |      |        |   |      |   |        |      |  |   |         |  
|Total operating expenses                                                                                          |  |      | 31,323 |   |      |   | 34,154 |      |  |   | 29,916  |  
|                                                                                                                  |  |      |        |   |      |   |        |      |  |   |         |  
|Income (loss) from operations                                                                                     |  |      | 1,777  |   |      |   | 2,355  |      |  |   | (1,470  | )
|Interest expense, including amortization of debt financing costs                                                  |  |      | (9,193 | ) |      |   | (5,871 | )    |  |   | (7,574  | )
|Loss on extinguishment of debt                                                                                    |  |      | (508   | ) |      |   | (1,094 | )    |  |   | (2,582  | )
|Interest income                                                                                                   |  |      | 30     |   |      |   | 18     |      |  |   | 7       |  
|Other income, net                                                                                                 |  |      |       |   |      |   | 5      |      |  |   | 750     |  
|                                                                                                                  |  |      |        |   |      |   |        |      |  |   |         |  
|Loss before income taxes                                                                                          |  |      | (7,894 | ) |      |   | (4,587 | )    |  |   | (10,869 | )
|                                                                                                                  |  |      |       
|Income tax expense                                                                                                |  |      | (1,330 | ) |      |   | (1,119 | )    |  |   | (2,738  | )
|                                                                                                                  |  |      |        |   |      |   |        |      |  |   |         |  
|Loss before minority interest in consolidated entity                                                              |  |      | (9,224 | ) |      |   | (5,706 | )    |  |   | (13,607 | )
|                                                                                                                  |  |      |       
|Minority interest in consolidated entity                                                                          |  |      |       |   |      |   | 188    |      |  |   | 420     |  
|                                                                                                                  |  |      |        |   |      |   |        |      |  |   |         |  
|Net loss                                                                                                          |  | $    | (9,224 | ) |      | $ | (5,518 | )    |  | $ | (13,187 | )
|                                                                                                                  |  |      |        |   |      |   |        |      |  |   |         |  

The accompanying notes are an integral part of these financial statements.



F-4



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

STATEMENTS OF CHANGES IN SHAREHOLDERS DEFICIT

For the Years Ended December 31, 2005, 2004 and 2003

(in thousands, except share information)



|                             |  |              |  |                        |   |  |                     |    |   |                           |   |         |   |  |   |         |  
|---------------------------- |  | ------------ |  | ---------------------- | - |  | ------------------- | -- | - | ------------------------- | - | ------- | - |  | - | ------- | -
|                             |  | Common Stock |  | SubscriptionReceivable |   |  | Accumulated Deficit |    |   | TotalShareholdersDeficit |  
|                             |  | Shares       |  | Par Value              |   |  |                    
|Balance at January 1, 2003   |  | 1,000        |  | $                      | 1 |  | $                   | (1 | ) |                           | $ | (61,082 | ) |  | $ | (61,082 | )
|Net loss                     |  |             |  |                        |  |  |                     |   |   |                           |   | (13,187 | ) |  |   | (13,187 | )
|                             |  |              |  |                        |   |  |                     |    |   |                           |   |         |   |  |   |         |  
|Balance at December 31, 2003 |  | 1,000        |  |                        | 1 |  |                     | (1 | ) |                           |   | (74,269 | ) |  |   | (74,269 | )
|Net loss                     |  |             |  |                        |  |  |                     |   |   |                           |   | (5,518  | ) |  |   | (5,518  | )
|                             |  |              |  |                        |   |  |                     |    |   |                           |   |         |   |  |   |         |  
|Balance at December 31, 2004 |  | 1,000        |  |                        | 1 |  |                     | (1 | ) |                           |   | (79,787 | ) |  |   | (79,787 | )
|Net loss                     |  |             |  |                        |  |  |                     |   |   |                           |   | (9,224  | ) |  |   | (9,224  | )
|                             |  |              |  |                        |   |  |                     |    |   |                           |   |         |   |  |   |         |  
|Balance at December 31, 2005 |  | 1,000        |  | $                      | 1 |  | $                   | (1 | ) |                           | $ | (89,011 | ) |  | $ | (89,011 | )
|                             |  |              |  |                        |   |  |                     |    |   |                           |   |         |   |  |   |         |  

The accompanying notes are an integral part of these financial statements.



F-5



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2005, 2004 and 2003

(in thousands)



|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|------------------------------------------------------------------------------------------ |  | ---- | -------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|                                                                                           |  | 2005 |          |   | 2004 |   |          | 2003 | 
|Cash flows from operating activities:                                                      |  |      |          |   |      |   |          |      |  |   |          |  
|Net loss                                                                                   |  | $    | (9,224   | ) |      | $ | (5,518   | )    |  | $ | (13,187  | )
|Adjustments to reconcile net loss to net cash provided by (used for) operating activities: |  |      |          |   |      |   |          |      |  |   |          |  
|Deferred income taxes                                                                      |  |      | 1,327    |   |      |   | 1,096    |      |  |   | 1,206    |  
|Provision for bad debts                                                                    |  |      |         |   |      |   | 46       |      |  |   | 58       |  
|Depreciation of property and equipment                                                     |  |      | 2,809    |   |      |   | 2,572    |      |  |   | 3,570    |  
|Amortization of intangible assets                                                          |  |      | 6,109    |   |      |   | 5,492    |      |  |   | 5,929    |  
|Amortization of debt financing costs                                                       |  |      | 91       |   |      |   | 149      |      |  |   | 264      |  
|Amortization of broadcast rights, excluding barter                                         |  |      | 1,982    |   |      |   | 2,462    |      |  |   | 2,060    |  
|Payments for broadcast rights                                                              |  |      | (2,211   | ) |      |   | (2,080   | )    |  |   | (2,044   | )
|Gain on asset disposal, net                                                                |  |      | (79      | ) |      |   | (170     | )    |  |   | (269     | )
|Loss on extinguishment of debt                                                             |  |      | 508      |   |      |   | 1,094    |      |  |   | 2,582    |  
|Effect of accounting for derivative instruments                                            |  |      |         |   |      |   |         |      |  |   | (858     | )
|Minority interest in consolidated entity                                                   |  |      |         |   |      |   | (188     | )    |  |   | (420     | )
|                                                                                           |  |      |         
|Changes in operating assets and liabilities, net of acquisitions:                          |  |      |          |   |      |   |          |      |  |   |          |  
|Accounts receivable                                                                        |  |      | 92       |   |      |   | 4,217    |      |  |   | (27      | )
|Taxes receivable                                                                           |  |      |         |   |      |   |         |      |  |   | 62       |  
|Prepaid expenses and other current assets                                                  |  |      | 22       |   |      |   | (80      | )    |  |   | 33       |  
|Other noncurrent assets                                                                    |  |      | 209      |   |      |   | (27      | )    |  |   | (134     | )
|Taxes payable                                                                              |  |      | (14      | ) |      |   | (2       | )    |  |   | 16       |  
|Accounts payable and accrued expenses                                                      |  |      | (463     | ) |      |   | (424     | )    |  |   | 331      |  
|Interest payable                                                                           |  |      | 40       |   |      |   | 1        |      |  |   | (60      | )
|Deferred revenue                                                                           |  |      | 511      |   |      |   | (6       | )    |  |   | (1       | )
|Other noncurrent liabilities                                                               |  |      | 218      |   |      |   | 310      |      |  |   | 1,415    |  
|Due to Nexstar Broadcasting, Inc.                                                          |  |      | 1,293    |   |      |   | (11,052  | )    |  |   | 9,190    |  
|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|Net cash provided by (used for) operating activities                                       |  |      | 3,220    |   |      |   | (2,108   | )    |  |   | 9,716    |  
|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|Cash flows from investing activities:                                                      |  |      |          |   |      |   |          |      |  |   |          |  
|Additions to property and equipment                                                        |  |      | (1,401   | ) |      |   | (252     | )    |  |   | (1,204   | )
|Proceeds from sale of assets                                                               |  |      | 1        |   |      |   | 1        |      |  |   |         |  
|Acquisition of broadcast properties and related transaction costs                          |  |      | (6,129   | ) |      |   | (22,693  | )    |  |   | (9,692   | )
|Down payment on acquisition of stations                                                    |  |      |         |   |      |   |         |      |  |   | (1,500   | )
|Change in restricted cash                                                                  |  |      |         |   |      |   | 800      |      |  |   | (800     | )
|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|Net cash used for investing activities                                                     |  |      | (7,529   | ) |      |   | (22,144  | )    |  |   | (13,196  | )
|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|Cash flows from financing activities:                                                      |  |      |          |   |      |   |          |      |  |   |          |  
|Proceeds from debt issuance                                                                |  |      | 172,700  |   |      |   | 152,000  |      |  |   | 195,000  |  
|Repayment of long-term debt                                                                |  |      | (173,172 | ) |      |   | (152,760 | )    |  |   | (202,005 | )
|Proceeds from revolver draws                                                               |  |      |         |   |      |   | 30,500   |      |  |   | 16,150   |  
|Repayment of note payable to related party                                                 |  |      |         |   |      |   |         |      |  |   | (2,000   | )
|Payments for debt financing costs                                                          |  |      | (796     | ) |      |   | (364     | )    |  |   | (2,334   | )
|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|Net cash provided by (used for) financing activities                                       |  |      | (1,268   | ) |      |   | 29,376   |      |  |   | 4,811    |  
|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|Net increase (decrease) in cash and cash equivalents                                       |  |      | (5,577   | ) |      |   | 5,124    |      |  |   | 1,331    |  
|                                                                                           |  |      |         
|Cash and cash equivalents at beginning of year                                             |  |      | 6,981    |   |      |   | 1,857    |      |  |   | 526      |  
|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|Cash and cash equivalents at end of year                                                   |  | $    | 1,404    |   |      | $ | 6,981    |      |  | $ | 1,857    |  
|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|Supplemental schedule of noncash activities:                                               |  |      |          |   |      |   |          |      |  |   |          |  
|Cash paid for interest, net                                                                |  | $    | 9,148    |   |      | $ | 5,711    |      |  | $ | 7,299    |  
|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  
|Cash paid for income taxes, net                                                            |  | $    | 11       |   |      | $ | 8        |      |  | $ |         |  
|                                                                                           |  |      |          |   |      |   |          |      |  |   |          |  

The accompanying notes are an integral part of these financial statements.



F-6



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS

1. Organization and Business Operations

As of
December 31, 2005, Mission Broadcasting, Inc. (Mission or the Company) owned and operated 15 television stations, 14 of which were affiliated with the NBC, ABC, CBS, Fox or UPN television networks and one was an
independent television station, in markets located in New York, Pennsylvania, Illinois, Indiana, Missouri, Texas and Montana. Through local service agreements, Nexstar Broadcasting, Inc. (Nexstar) provides sales and operating services to
all of the Mission television stations (see Note 4).

Mission, formerly known as Mission Broadcasting of Wichita Falls, Inc. (Mission
of Wichita Falls), completed a merger with Bastet Broadcasting, Inc. (Bastet) and Mission Broadcasting of Joplin, Inc. (Mission of Joplin), a wholly-owned subsidiary of Mission of Wichita Falls, on September 30,
2002. Bastet and Mission were separate entities, 100% owned by the same third party at the beginning of fiscal year 2002. Bastet was formed in 1997 to own and operate television stations in small- and medium-sized markets across the United States.
Bastet completed its first television station acquisition in January 1998. Mission of Wichita Falls was incorporated in 1998, and commenced operations on June 1, 1999, with its acquisition of two television stations.

On December 30, 2003, Mission completed the acquisition of 3 television stations from VHR Broadcasting, Inc. and its subsidiaries (VHR)
and the acquisition of 2 television stations from Mission Broadcasting of Amarillo (Mission of Amarillo) (see Note 2).

The
Company is highly vulnerable to changes in general economic conditions because of its high level of debt. The Companys ability to repay or refinance its debt will depend on, among other things, financial, business, market, competitive and
other conditions, many of which are beyond its control. Management believes that with Nexstars pledge to continue the local service agreements, as described in a letter of support dated March 8, 2006, our available cash, anticipated cash
flow from operations and available borrowings under our senior credit facility should be sufficient to fund working capital, capital expenditure requirements, interest payments and scheduled debt principal payments for at least the next twelve
months from December 31, 2005, enabling Mission to continue to operate as a going concern.

2. Summary of Significant Accounting Policies

Basis of Presentation

On December 30, 2003, Mission completed the acquisition of 3 television stations from VHR and the acquisition of 2 television stations from Mission of Amarillo. VHR merged with and into two affiliates of Mission
of Amarillo, and then Mission of Amarillo and such affiliates merged with and into Mission. Prior to December 30, 2003, Quorum Broadcast Holdings, LLC (Quorum) provided sales or other services to the 5 acquired stations under local
service agreements with VHR and Mission of Amarillo, as applicable, that were substantially similar to Nexstars local service agreements with Mission, as described below. On December 30, 2003, Nexstar Broadcasting Group, Inc.,
Nexstars ultimate parent, completed its acquisition of all of the direct and indirect subsidiaries of Quorum. The Quorum acquisition was structured as a merger of Quorums direct subsidiaries into Nexstar Broadcasting Group, Inc. and a
subsequent contribution and merger of Quorums indirect subsidiaries with and into Nexstar. Upon completion of the Quorum acquisition and the Mission mergers, Nexstar became a party to the local service agreements as successor to the Quorum
subsidiaries and Mission became a party to such agreements as the successor to VHR and Mission of Amarillo. Mission also entered into option agreements with Nexstar for the purchase of these stations.

ABRY Partners LLC, Nexstar Broadcasting Group, Inc.s principal stockholder through its various funds, both before and after the merger, held more
than 50% of the voting ownership of both Nexstar Broadcasting Group, Inc. and Quorum. Although Nexstar and Quorum did not own Mission, Mission of Amarillo or VHR and did not operate the television stations owned by Mission, Mission of Amarillo or
VHR, Nexstar and Quorum were deemed to have controlling financial interests under accounting principles generally accepted in the United States of America (U.S. GAAP) in Mission, Mission of Amarillo and VHR due to their guarantees of
Missions, Mission of Amarillos and VHRs debt and the local service and purchase option agreements described below with Mission, Mission of Amarillo and VHR. Due to these relationships and the common financial control therein,
Missions acquisition of Mission of Amarillo and VHR were accounted for as a combination of entities under common control in a manner similar to pooling of interests. This conclusion was based on the guidance in Financial Accounting Standards
Board (FASB) Statement of Financial Accounting Standards No. 141 Business Combinations (SFAS No. 141) and FASB Emerging Issues Task Force Issue 02-05 Definition of Common Control in
Relation to SFAS No. 141. Accordingly, Missions financial statements herein have been restated to include the financial results of the VHR and Mission of Amarillo stations for 2003.

Certain prior year financial statement amounts have been reclassified to conform to the current year presentation.



F-7



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

2. Summary of Significant Accounting
Policies(Continued)

Local Service Agreements and Purchase Options

The following table summarizes the various local service agreements Missions stations had in effect as of December 31, 2005 with Nexstar-owned
stations:



|                   |  |                                                                                                      
|------------------ |  | -----------------------------------------------------------------------------------------------------
|Service Agreements |  | Stations                                                                                             
|TBA (1)            |  | WFXP and KHMT                                                                                        
|                   | 
|SSA & JSA (2)      |  | KJTL, KJBO-LP, KOLR, KCIT, KCPN-LP, KAMC, KRBC, KSAN, WUTR, WFXW (formerly WBAK), WYOU, KODE and WTVO

---

|(1) | Mission has a time brokerage agreement (TBA) for each of these stations which allows Nexstar to program most of each stations broadcast time, sell each
stations advertising time and retain the advertising revenue generated in exchange for monthly payments to Mission.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Mission has both a shared service agreement (SSA) and a joint services agreement (JSA) for each of these stations. The SSA allows the sharing of
services including news production, technical maintenance and security, in exchange for Nexstars right to receive certain payments from Mission as described in the SSAs. The JSAs permit Nexstar to sell and retain a percentage of the net
revenue from the stations advertising time in return for monthly payments to Mission of the remaining percentage of the net revenue, as described in the JSAs.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The arrangements under the SSAs and JSAs have had the effect of Nexstar receiving substantially all of the available cash, after debt service costs,
generated by the stations listed above. The arrangements under the TBAs have also had the effect of Nexstar receiving substantially all of the available cash generated by the TBA stations listed above. Mission anticipates that Nexstar will continue
to receive substantially all of Missions available cash, after payments for debt service costs, generated by the stations listed above.

Missions sole shareholder has granted Nexstar a purchase option 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
stations 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. Broadcast cash flow is defined as income or loss from operations, plus
depreciation and amortization (including amortization of broadcast rights), interest income, non-cash trade and barter expenses, nonrecurring expenses (including time brokerage agreement fees), network compensation payments received or receivable
and corporate management fees, less payments for broadcast rights, non-cash trade and barter revenue and network compensation revenue. These option agreements are freely exercisable or assignable by Nexstar without consent or approval by
Missions sole shareholder.

Nexstar does not own or control Mission or its television stations. However, as a result of
Nexstars guarantee of the obligations incurred under Missions senior secured credit facility and the arrangements under the local service agreements and purchase option agreements with Mission, Nexstar is deemed under U.S. GAAP to have a
controlling financial interest in Mission while complying with the FCCs rules regarding ownership limits in television markets. In order for both Nexstar and Mission to comply with the Federal Communications Commission (FCC)
regulations, Mission maintains complete responsibility for and control over programming, finances, personnel and operations of its stations.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make
estimates and use assumptions that affect the reported amounts of assets and liabilities and the disclosure for contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the
reporting period. The more significant estimates made by management include those relating to the allowance for doubtful accounts, trade and barter transactions, the recoverability of broadcast rights and the carrying amounts and useful lives of
intangible assets. Actual results may vary from estimates used.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents.



F-8



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

2. Summary of Significant Accounting
Policies(Continued)

Accounts Receivable and Allowance for Doubtful Accounts

The Companys accounts receivable consists primarily of billings to cable and satellite carriers for compensation associated with
retransmission consent agreements and amounts due from the major television networks under the network affiliation agreements. The Company maintains an allowance for doubtful accounts when necessary for estimated losses resulting from the inability
of customers to make required payments. Management evaluates the collectibility of accounts receivable based on a combination of factors. In circumstances where management is aware of a specific customers inability to meet its financial
obligations, an allowance is recorded to reduce their receivable amount to an amount estimated to be collected. The Company had no allowance for doubtful accounts at December 31, 2005 and 2004 given the composition of its accounts receivable at
those dates. The Company had no bad debt expense for the year ended December 31, 2005 and recorded bad debt expense of $46 thousand and $58 thousand for the years ended December 31, 2004 and 2003, respectively, which was included in
selling, general and administrative expenses in the Companys statement of operations.

Concentration of Credit Risk

Financial instruments which potentially expose the Company to a concentration of credit risk consist principally of cash and cash
equivalents. Cash deposits are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits; however, the Company believes these deposits are maintained with financial
institutions of reputable credit and are not subject to any unusual credit risk.

Revenue Recognition

The Companys revenue has been primarily derived from the sale of television advertising, network compensation and other revenues. Advertising
revenue is recognized, net of certain commissions, in the period during which the time spots are aired.



| |  |  | Revenue from Nexstar, representing a percentage of net advertising revenue derived from the sale of time spots on the Companys stations, is recognized in the period during
which the time spots are aired.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Network compensation is either recognized when the Companys station broadcasts specific network programming based upon a negotiated hourly-rate, or on a straight-line basis
based upon the total negotiated compensation to be received by the Company over the term of the agreement.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Other revenues, which may include tower rent revenue and other similar activities from time to time, are recognized in the period during which the services are provided.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Company trades certain advertising time for various goods and services. These transactions are recorded at the estimated
fair value of the goods or services received. Revenue from trade transactions is recognized when the related advertisement spots are broadcast. The Company recorded $0.3 million and $0.5 million of trade revenue for the years ended December 31,
2004 and 2003, respectively.

The Company barters advertising time for certain program material. These transactions, except those involving
exchange of advertising time for network programming, are recorded at managements estimate of the value of the advertising time exchanged, which approximates the fair value of the program material received. The value of advertising time
exchanged is estimated by applying average historical advertising rates for specific time periods. Revenue from barter transactions is recognized as the related advertisement spots are broadcast. The Company recorded $2.4 million, $2.1 million and
$2.1 million of barter revenue for the years ended December 31, 2005, 2004 and 2003, respectively.

Barter expense is recognized at
the time program broadcast rights assets are used. The Company recorded $2.4 million, $2.1 million and $2.1 million of barter expense for the years ended December 31, 2005, 2004 and 2003, respectively, which was included in amortization of
broadcast rights in the Companys statement of operations.

Trade expense is recognized when services or merchandise received are
used. The Company had no trade expense for the year ended December 31, 2005 and recorded $0.2 million and $0.5 million of trade expense for the years ended December 31, 2004 and 2003, respectively, which was included in direct operating
expenses in the Companys statement of operations.



F-9



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

2. Summary of Significant Accounting
Policies(Continued)

Broadcast Rights Assets and Broadcast Rights Payable

The Company records rights to programs, primarily in the form of syndicated programs and feature movie packages obtained under license agreements for the
limited right to broadcast the suppliers programming when the following criteria are met: 1) the cost of each program is known or reasonably determinable, 2) the license period has begun, 3) the program material has been accepted in accordance
with the license agreement, and 4) the programming is available for use. Cash broadcast rights are initially recorded at the amount paid or payable to program suppliers; or, in the case of barter transactions, at managements estimate of the
value of the advertising time exchanged using historical advertising rates, which approximates the fair value of the program material received. The Company records the estimated fair value of the broadcast rights, including any advertising inventory
given to program suppliers, as a broadcast rights asset and liability. Broadcast rights assets are stated at the lower of unamortized cost or net realizable value. The current portion of broadcast rights assets represents those rights available for
broadcast which will be amortized in the succeeding year. Amortization of broadcast rights assets is computed using the straight-line method based on the license period or programming usage, whichever yields the greater expense. Broadcast rights
liabilities are reduced by monthly payments to program suppliers; or, in the case of barter transactions, are amortized over the life of the associated programming license contract as a component of trade and barter revenue. When projected future
net revenue associated with a program is less than the current carrying amount of the program broadcast rights due to, for example; poor ratings, the Company writes down the unamortized cost of the broadcast rights asset to equal the amount of
projected future net revenue. If the expected broadcast period was shortened or cancelled, the Company would be required to write-off the remaining value of the related broadcast rights asset on an accelerated basis or possibly immediately. Such
reductions in unamortized costs is included in amortization of broadcast rights in the statement of operations.

Property and
Equipment

Property and equipment is stated at cost. The cost and related accumulated depreciation applicable to assets sold or
retired are removed from the accounts and the gain or loss on disposition is recognized. Major renewals and betterments are capitalized and ordinary repairs and maintenance are charged to expense in the period incurred. Depreciation is computed on a
straight-line basis over the estimated useful lives of the assets ranging from 3 to 39 years (see Note 5).

Network Affiliation
Agreements

Network affiliation agreements are stated at estimated fair value at the date of acquisition using a discounted cash
flow method. Amortization is computed on a straight-line basis over the estimated useful life of 15 years.

Each of the Companys
stations, except for KCPN-LP, has a network affiliation agreement pursuant to which the broadcasting network provides programming to the station during specified time periods, including prime time. Under the affiliation agreements with NBC, CBS and
ABC, most of the Companys stations receive compensation for distributing the networks programming over the air and for allowing the network to keep a portion of advertising inventory during those time periods. The affiliation agreements
with Fox and UPN do not provide for compensation.

Intangible Assets

Intangible assets consist primarily of goodwill, broadcast licenses (FCC licenses) and network affiliation agreements that are stated at
estimated fair value at the date of acquisition using a discounted cash flow method. The Companys goodwill and FCC licenses are considered to be indefinite-lived intangible assets and are not amortized but instead are tested for impairment
annually or whenever events or changes in circumstances indicate that such assets might be impaired. Network affiliation agreements are subject to amortization computed on a straight-line basis over the estimated useful life of 15 years. An
impairment assessment of the Companys intangible assets could be triggered by a significant reduction in operating results or cash flows at one or more of the Companys television stations, or a forecast of such reductions, a significant
adverse change in the advertising marketplaces in which the Companys television stations operate, the loss of network affiliations, or by adverse changes to FCC ownership rules, among others.

The impairment test for goodwill utilizes a two-step fair value approach. The first step of the goodwill impairment test is used to identify potential
impairment by comparing the fair value of a station (reporting unit) to its carrying amount. The fair value of a reporting unit is determined using a discounted cash flows analysis. If the fair value of the reporting unit exceeds its
carrying amount, goodwill is not considered impaired. If the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step
of the goodwill impairment test compares the implied fair value of the reporting units goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined by performing an assumed purchase price allocation,
using the reporting unit fair value (as determined in Step 1) as the purchase price. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess.



F-10



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

2. Summary of Significant Accounting
Policies(Continued)

The impairment test for FCC licenses consists of a station-by-station comparison of the carrying amount of
FCC licenses with their fair value, using a discounted cash flows analysis that excludes network compensation payments.

The Company
completed the annual tests of impairment for goodwill and FCC licenses as of December 31, 2005, 2004 and 2003, which resulted in no impairment being recognized for the Company in 2005, 2004 and 2003.

The Company tests network affiliation agreements whenever events or changes in circumstances indicate that their carry amount may not be recoverable,
relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. An impairment in the carrying amount of a network affiliation agreement is recognized when the expected future
operating cash flow derived from the asset is less than its carrying value.

Debt Financing Costs

Debt financing costs represent direct costs incurred to obtain long-term financing and are amortized to interest expense over the term of the related
debt. Previously capitalized debt financing costs are expensed and included in loss on extinguishment of debt if the Company determines that there has been a substantial modification of the related debt in accordance with FASB Emerging Issues Task
Force (EITF) Issue 96-19, Debtors Accounting for a Modification or Exchange of Debt Instruments. As of December 31, 2005 and 2004, debt financing costs of $0.6 million and $0.4 million, respectively, were included
in other noncurrent assets.

Advertising Expense

The cost of advertising is expensed as incurred. The Company had no advertising expense for the year ended December 31, 2005 and incurred advertising
costs in the amount of $0.1 million and $0.2 million for the years ended December 31, 2004 and 2003, respectively, which were included in selling, general and administrative expenses in the Companys statement of operations.

Financial Instruments

The
carrying amount of cash and cash equivalents, broadcast rights payable, accounts payable and accrued expenses approximates fair value due to their short-term nature. The interest rates on the Companys term loan and revolving credit facility
are adjusted regularly to reflect current market rates. Accordingly, the carrying amount of the Companys term loan and revolving credit facility approximates fair value.

Income Taxes

The Company
accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and tax basis of
assets and liabilities. A valuation allowance is applied against net deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.



F-11



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

2. Summary of Significant Accounting
Policies(Continued)

Recent Accounting Pronouncements

In December 2004, the FASB issued Statement of Financial Accounting Standards No. 153, Exchanges of Nonmonetary Assets, an amendment of
APB Opinion No. 29 (SFAS No. 153). The amendments made by SFAS No. 153 require that exchanges of nonmonetary assets be accounted for at fair value of the assets exchanged, unless the exchange lacks commercial
substance. A nonmonetary exchange has commercial substance when the future cash flows of the entity are expected to change significantly as a result of the exchange. This new Standard eliminates a provision in APB Opinion No. 29 that exempted
nonmonetary exchanges of similar productive assets from fair value accounting. SFAS No. 153 is effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Therefore, SFAS No. 153 was effective
for the Company on July 1, 2005. The adoption of this new Standard did not have a material impact on the Companys financial position or results of operations.

In March 2005, the FASB issued Financial Interpretation No. 47, Accounting for Conditional Asset Retirement Obligations, an interpretation of FASB Statement No. 143 (FIN
No. 47). FIN No. 47 clarifies that an entity must record a liability for a conditional asset retirement obligation if the fair value of the obligation can be reasonably estimated. A conditional asset retirement obligation is a term
used in Statement of Financial Accounting Standards No. 143, Accounting for Asset Retirement Obligations, that refers to a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are
conditional on a future event that may or may not be within the control of the entity. FIN No. 47 is effective no later than the end of fiscal years ending after December 15, 2005, which is the Companys current fiscal year ending
December 31, 2005. The adoption of FIN No. 47 did not have any material impact on the Companys financial position or results of operations.

In May 2005, the FASB issued Statement of Financial Accounting Standards No. 154, Accounting Changes and Error Corrections - a replacement of APB No. 20 and FASB Statement No. 3
(SFAS No. 154). SFAS No. 154 requires entities that voluntarily make a change in accounting principle to apply that change retrospectively to all prior period financial statements as if the principle had always been used,
unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. Previously under APB Opinion No. 20, Accounting Changes, most voluntary changes in accounting principle were
recognized by including in net income of the period of change the cumulative effect of changing to the new accounting principle. In addition to voluntary changes, this new Standard establishes retrospective application as the required method for
adopting a newly issued accounting pronouncement when the pronouncement does not include specific transition provisions. SFAS No. 154 also requires that a change in method of depreciation, amortization, or depletion for long-lived, nonfinancial
assets, be accounted for as a change in accounting estimate affected by a change in accounting principle, the effects of which are to be applied prospectively in the period of change and future periods. This Statement also makes a distinction
between retrospective application of an accounting principle and the restatement of financial statements to reflect the correction of an error. SFAS No. 154 applies to accounting changes and error corrections that are
made in fiscal years beginning after December 15, 2005. The Company will adopt the provisions of SFAS No. 154, as applicable, beginning in fiscal 2006.

In February 2006, the FASB issued Statement of Financial Accounting Standards No. 155, Accounting for Hybrid Financial Instruments  an amendment to of FASB Statements No. 133 and 140 (SFAS
No. 155). SFAS No. 155 provides a fair value measurement option for certain hybrid financial instruments that contain an embedded derivative that otherwise would require bifurcation. Under SFAS No. 155, an entity must
irrevocably elect, on an instrument-by-instrument basis, to apply fair value accounting to a hybrid financial instrument in its entirety in lieu of separately accounting for the instrument as a host contract and derivative instrument. Additionally,
SFAS No. 155 clarifies that both interest-only and principal-only strips are not subject to the provision of SFAS No. 133 and establishes a requirement to evaluate interests in securitized financial assets to identify interests that are
freestanding versus those that are embedded derivatives. SFAS No. 155 is effective for all financial instruments acquired or issued after the beginning of an entitys first fiscal year that begins after September 15, 2006, which for
the Company is January 1, 2007. Earlier adoption is permitted as of the beginning of an entitys fiscal year. The Company will adopt the provisions of SFAS No. 155 beginning in fiscal 2007. The Company does not intend to issue or
acquire the hybrid included in the scope of SFAS No. 155 and does not expect the adoption of this Statement to have a material impact on the Companys financial position or results of operations.



F-12



---

##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

3. Acquisitions

The VHR and Mission of Amarillo Mergers

On September 12, 2003, Mission entered into purchase agreements with VHR for the purchase of television stations KOLR, KHMT and KAMC, and with Mission of Amarillo for the purchase of television stations KCIT and KCPN-LP.

On December 30, 2003, Mission completed the acquisition (the Acquisition) of Mission of Amarillo, Kenos Broadcasting, Inc.
(Kenos), Kenos Broadcasting II, Inc. (Kenos II) and their subsidiaries, pursuant to the merger agreement among Mission, Mission of Amarillo, Kenos and Kenos II, as amended. The Acquisition was structured as a merger of
Mission of Amarillo, Kenos and Kenos II and their subsidiaries into Mission. Earlier on December 30, 2003, VHR merged with and into Kenos and VHR Broadcasting of Billings, LLC (VHR Billings) merged with and into Kenos II.

Prior to the transactions described above, each of Mission of Amarillo, Kenos and Kenos II were 100% owned by the sole stockholder of
Mission. VHR and VHR Billings were each 100% owned by an unrelated third-party.

Mission is operating the stations it has acquired through
this Acquisition.

Mission paid approximately $80.0 million in connection with the acquisition. Mission financed the acquisition with
borrowings from its amended senior credit facility with Bank of America, N.A. and other lenders named therein and cash on hand.

The
mergers noted above were accounted for as mergers of entities under common control in a manner similar to pooling of interests. Accordingly, Missions financial statements herein have been restated to include the financial results of the VHR
and Mission of Amarillo stations for 2003.

Purchase Acquisitions

During 2003, 2004 and 2005, the Company consummated the acquisitions listed below. These acquisitions have been accounted for using the purchase method of
accounting and, accordingly, the purchase price was allocated to assets acquired and liabilities assumed based on their estimated fair value on the acquisition date. The excess of the purchase price over the fair values assigned to the net assets
acquired is recorded as goodwill. The financial statements include the operating results of each business from the earlier of the TBA commencement date or the date of acquisition.



|        |  |                     |  |                           |  |                
|------- |  | ------------------- |  | ------------------------- |  | ---------------
|Station |  | Network Affiliation |  | Market                    |  | Date Acquired  
|KRBC(1) |  | NBC                 |  | Abilene-Sweetwater, Texas |  | June 13, 2003  
|KSAN(1) |  | NBC                 |  | San Angelo, Texas         |  | June 13, 2003  
|WUTR    |  | ABC                 |  | Utica, New York           |  | April 1, 2004  
|WFXW(2) |  | Fox                 |  | Terre Haute, Indiana      |  | April 6, 2004  
|WTVO(3) |  | ABC                 |  | Rockford, Illinois        |  | January 4, 2005

---

|(1) | The Company commenced operations under a TBA on January 1, 2003 which terminated on the date of acquisition.
|--- | ------------------------------------------------------------------------------------------------------------

|(2) | The Company commenced operations under a TBA on May 9, 2003 which terminated on the date of acquisition.
|--- | --------------------------------------------------------------------------------------------------------

|(3) | The Company commenced operations under a TBA on November 1, 2004 which terminated on the date of acquisition.
|--- | -------------------------------------------------------------------------------------------------------------

KRBC and KSAN

On
December 13, 2002, Mission entered into a purchase agreement and a local marketing agreement with LIN Television Corporation and two of its subsidiaries, with regard to KRBC, the NBC affiliate in Abilene-Sweetwater, Texas, and KSAN, the NBC
affiliate in San Angelo, Texas. Mission began providing programming and selling advertising under the local marketing agreement on January 1, 2003 which terminated upon the purchase of the stations. On June 13, 2003, Mission completed the
acquisition of KRBC and KSAN for total consideration of $10.0 million, exclusive of transaction costs. Pursuant to the terms of the purchase agreement, Mission made a down payment of $1.5 million against the purchase price in December 2002 and paid
the remaining $8.5 million upon the consummation of the acquisition on June 13, 2003, exclusive of transaction costs.



F-13



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

3. Acquisitions(Continued)

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.
Mission obtained third-party valuations of certain acquired intangible assets (in thousands).



|                               |  |   |       
|------------------------------ |  | - | ------
|Accounts receivable            |  | $ | 862   
|Broadcast rights               |  |   | 291   
|Property and equipment         |  |   | 5,414 
|Intangible assets              |  |   | 3,942 
|Goodwill                       |  |   | 281   
|                               |  |   |       
|Total assets acquired          |  |   | 10,790
|Less: accounts payable         |  |   | 42    
|Less: broadcast rights payable |  |   | 342   
|                               |  |   |       
|Net assets acquired            |  | $ | 10,406
|                               |  |   |       

Of the $4.0 million of acquired intangible assets, $2.1 million was assigned to FCC licenses that
are not subject to amortization and $1.7 million was assigned to network affiliation agreements (estimated useful life of 15 years). The remaining $0.2 million of acquired intangible assets have an estimated useful life of approximately 1 year.
Goodwill of $0.3 million is expected to be deductible for tax purposes.

WUTR

On December 17, 2003, Mission entered into a purchase agreement with a subsidiary of Clear Channel Communications, which owned WUTR, the ABC
affiliate in Utica, New York. On April 1, 2004, Mission completed the acquisition of WUTR for total consideration of $3.7 million, exclusive of transaction costs.

The following table summarizes the estimated fair values of the assets acquired at the date of acquisition. Mission obtained third-party valuations of certain acquired intangible assets (in thousands).



|                       |  |   |      
|---------------------- |  | - | -----
|Property and equipment |  | $ | 2,040
|Intangible assets      |  |   | 1,685
|Goodwill               |  |   | 363  
|                       |  |   |      
|Assets acquired        |  | $ | 4,088
|                       |  |   |      

Of the $1.7 million of acquired intangible assets, $0.5 million was assigned to FCC licenses that
are not subject to amortization and $1.0 million was assigned to network affiliation agreements (estimated useful life of 15 years). The remaining $0.2 million of acquired intangible assets have an estimated useful life of approximately 1 year.
Goodwill of $0.4 million is expected to be deductible for tax purposes.

WFXW (formerly WBAK)

On May 9, 2003, Mission entered into a purchase agreement and a TBA with Bahakel Communications and certain of its subsidiaries, which owned WFXW,
the Fox affiliate in Terre Haute, Indiana. Mission began providing programming and selling advertising under the TBA on May 9, 2003 which terminated upon the purchase of the station. On April 6, 2004, Mission completed the acquisition of
WFXW for total consideration of $3.0 million, exclusive of transaction costs. Pursuant to terms of the purchase agreement, Mission made a down payment of $1.5 million against the purchase price on May 9, 2003 and paid the remaining $1.5 million
upon consummation of the acquisition on April 6, 2004, exclusive of transaction costs.

The following table summarizes the estimated
fair values of the assets acquired at the date of acquisition. Mission obtained third-party valuations of certain acquired intangible assets (in thousands).



|                       |  |   |      
|---------------------- |  | - | -----
|Property and equipment |  | $ | 1,667
|Intangible assets      |  |   | 1,333
|Goodwill               |  |   | 1,239
|                       |  |   |      
|Assets acquired        |  | $ | 4,239
|                       |  |   |      



F-14



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

3. Acquisitions(Continued)

Of the $1.3 million of acquired intangible assets, $0.5 million was assigned to FCC licenses that are not subject to amortization and
$0.5 million was assigned to network affiliation agreements (estimated useful life of 15 years). The remaining $0.3 million of acquired intangible assets have an estimated useful life of approximately 1 year. Goodwill of $1.2 million is expected to
be deductible for tax purposes.

WTVO

On October 4, 2004, Mission entered into a purchase agreement and a TBA with Young Broadcasting, Inc. and Winnebago Television Corporation, which owned WTVO, the ABC affiliate in Rockford, Illinois. Mission began
providing programming and selling advertising under the TBA on November 1, 2004 which terminated upon the purchase of the station. On January 4, 2005, Mission completed the acquisition of WTVO for total consideration of $20.75 million,
exclusive of transaction costs. Pursuant to terms of the purchase agreement, Mission made an initial payment of $15.0 million against the purchase price on November 1, 2004, to acquire substantially all of the assets of WTVO, except for its FCC
license and certain transmission equipment. Mission paid the remaining $5.75 million on January 4, 2005, exclusive of transaction costs, for the purchase of WTVOs FCC license and certain transmission equipment.

The following table summarizes the estimated fair values of the assets acquired. Mission obtained third-party valuations of certain acquired intangible
assets (in thousands).



|                       |  |   |       
|---------------------- |  | - | ------
|Property and equipment |  | $ | 7,161 
|Intangible assets      |  |   | 10,279
|Goodwill               |  |   | 3,644 
|                       |  |   |       
|Assets acquired        |  | $ | 21,084
|                       |  |   |       

Of the $10.3 million of acquired intangible assets, $2.9 million was assigned to FCC licenses that
are not subject to amortization and $6.7 million was assigned to network affiliation agreements (estimated useful life of 15 years). The remaining $0.7 million of acquired intangible assets have an estimated useful life of approximately 1 year.
Goodwill of $3.6 million is expected to be deductible for tax purposes.

Unaudited Pro Forma Information

The following unaudited pro forma information has been presented as if the acquisitions of KRBC and KSAN had occurred on January 1, 2002; the
acquisitions of WUTR and WFXW had occurred on January 1, 2003; and the acquisition of WTVO had occurred on January 1, 2004.



|                                                   |  |                         |        |   |      |   |         |  
|-------------------------------------------------- |  | ----------------------- | ------ | - | ---- | - | ------- | -
|                                                   |  | Year Ended December 31, |       
|                                                   |  | 2004                    |        |   | 2003 |  
|                                                   |  | (in thousands)          |       
|Net broadcast revenue (including trade and barter) |  | $                       | 20,356 |   |      | $ | 20,263  |  
|Net revenue                                        |  |                         | 41,542 |   |      |   | 30,467  |  
|Income (loss) from operations                      |  |                         | 1,045  |   |      |   | (3,168  | )
|Net loss                                           |  | $                       | (7,764 | ) |      | $ | (15,422 | )

The above selected unaudited pro forma information is presented for illustrative purposes only and
is not necessarily indicative of results of operations in future periods or results that would have been achieved had the Company owned the acquired stations during the specified periods. There is no pro forma information presented for the
comparable periods in fiscal year 2005 since the acquisition of WTVO was consummated near the beginning of the year and the pro forma results would not be materially different from the Companys results of operations as reported.

4. Related Party Transactions

Local Service
Agreements

Mission has entered into local service agreements with Nexstar to provide sales and operating services to all the
Mission stations. Under the terms of a shared services agreement (SSA), the Nexstar station in the market bears the costs of certain services including news production, technical maintenance and security, in exchange for monthly payments
from Mission to Nexstar. For each station that Mission has entered into an SSA, it has also entered into a joint sales agreement (JSA). Under the JSA, Nexstar sells the Mission



F-15



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

4. Related Party
Transactions(Continued)

stations advertising time and retains a percentage of the revenue it generates in return for monthly payments to
Mission of the remaining percentage of net revenue. Under the terms of a time brokerage agreement (TBA), Nexstar programs most of the stations broadcast time, sells the stations advertising time and retains the advertising
revenue it generates in exchange for monthly payments to Mission. JSA and TBA fees generated from, and SSA fees incurred by Nexstar under the agreements described in the table below are reported as Revenue from Nexstar Broadcasting, Inc.
and Local service agreement fees associated with Nexstar Broadcasting, Inc. in the accompanying statement of operations.

In
order for both Nexstar and Mission to comply with FCC regulations, Mission maintains complete responsibility for and control over programming, finances, personnel and operations of its stations.

Local Service Agreements

The
following table summarizes the various local service agreements Mission has in effect with Nexstar as of December 31, 2005:



|         |  |                              |  |             |  |                   |  |            |  |                                                                               
|-------- |  | ---------------------------- |  | ----------- |  | ----------------- |  | ---------- |  | ------------------------------------------------------------------------------
|Station  |  | Market                       |  | Affiliation |  | Type of Agreement |  | Expiration |  | Consideration received from or paid to Nexstar                                
|WFXP     |  | Erie, PA                     |  | Fox         |  | TBA               |  | 8/16/06    |  | Monthly payments received from Nexstar(1)                                     
|         |  |                              |  |             | 
|KJTL and |  | Wichita Falls, TX-Lawton, OK |  | Fox         |  | SSA               |  | 5/31/09    |  | $70 thousand per month paid to Nexstar                                        
|KJBO-LP  |  |                              |  | UPN         |  | JSA               |  | 5/31/09    |  | 70% of the KJTL/KJBO-LP net revenue collected each month received from Nexstar
|         |  |                              |  |             | 
|WYOU     |  | Wilkes Barre-Scranton, PA    |  | CBS         |  | SSA               |  | 1/4/08     |  | $200 thousand per month paid to Nexstar                                       
|         |  |                              |  |             |  | JSA               |  | 9/30/14    |  | 70% of the WYOU net revenue collected each month received from Nexstar        
|         |  |                              |  |             | 
|KODE     |  | Joplin, MO-Pittsburg, KS     |  | ABC         |  | SSA               |  | 3/31/12    |  | $100 thousand per month paid to Nexstar                                       
|         |  |                              |  |             |  | JSA               |  | 9/30/14    |  | 70% of the KODE net revenue collected each month received from Nexstar        
|         |  |                              |  |             | 
|KRBC     |  | Abilene-Sweetwater, TX       |  | NBC         |  | SSA               |  | 6/12/13    |  | $100 thousand per month paid to Nexstar                                       
|         |  |                              |  |             |  | JSA               |  | 6/30/14    |  | 70% of the KRBC net revenue collected each month received from Nexstar        
|         |  |                              |  |             | 
|KSAN     |  | San Angelo, TX               |  | NBC         |  | SSA               |  | 5/31/14    |  | $50 thousand per month paid to Nexstar                                        
|         |  |                              |  |             |  | JSA               |  | 5/31/14    |  | 70% of the KSAN net revenue collected each month received from Nexstar        
|         |  |                              |  |             | 
|WFXW     |  | Terre Haute, IN              |  | Fox         |  | SSA               |  | 5/8/13     |  | $10 thousand per month paid to Nexstar                                        
|         |  |                              |  |             |  | JSA               |  | 5/8/13     |  | 70% of the WFXW net revenue collected each month received from Nexstar        
|         |  |                              |  |             | 
|KCIT and |  | Amarillo, TX                 |  | Fox         |  | SSA               |  | 4/30/09    |  | $60 thousand per month paid to Nexstar                                        
|KCPN-LP  |  |                              |  |            |  | JSA               |  | 4/30/09    |  | 70% of the KCIT/KCPN-LP net revenue collected each month received from Nexstar
|         |  |                              |  |             | 
|KHMT     |  | Billings, MT                 |  | Fox         |  | TBA               |  | 12/13/09   |  | Monthly payments received from Nexstar(1)                                     
|         |  |                              |  |             | 
|KAMC     |  | Lubbock, TX                  |  | ABC         |  | SSA               |  | 2/15/09    |  | $100 thousand per month paid to Nexstar                                       
|         |  |                              |  |             |  | JSA               |  | 2/15/09    |  | 70% of the KAMC net revenue collected each month received from Nexstar        
|         |  |                              |  |             | 
|KOLR     |  | Springfield, MO              |  | CBS         |  | SSA               |  | 2/15/09    |  | $150 thousand per month paid to Nexstar                                       
|         |  |                              |  |             |  | JSA               |  | 2/15/09    |  | 70% of the KOLR net revenue collected each month received from Nexstar        
|         |  |                              |  |             | 
|WUTR     |  | Utica, NY                    |  | ABC         |  | SSA               |  | 3/31/14    |  | $10 thousand per month paid to Nexstar                                        
|         |  |                              |  |             |  | JSA               |  | 3/31/14    |  | 70% of the WUTR net revenue collected each month received from Nexstar        
|         |  |                              |  |             | 
|WTVO     |  | Rockford, IL                 |  | ABC         |  | SSA               |  | 10/31/14   |  | $100 thousand per month paid to Nexstar                                       
|         |  |                              |  |             |  | JSA               |  | 10/31/14   |  | 70% of the WTVO net revenue collected each month received from Nexstar        

---

|(1) | Payments are variable based on stations monthly operating expenses.
|--- | --------------------------------------------------------------------



F-16



---

##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

4. Related Party
Transactions(Continued)

Under these agreements, Mission is responsible for certain operating expenses of its stations and
therefore may have unlimited exposure to any potential operating losses. Mission will continue to operate its stations under the SSAs and JSAs or TBAs until the termination of such agreements. The SSAs and JSAs generally have a term of ten years.
Nexstar indemnifies Mission from Nexstars activities pursuant to the local service agreement to which Nexstar is a party.

The table
below presents the revenue associated with the local service agreements Missions stations have with Nexstar.



|             |  |                          |  |                |        |      |   |        |  |   |       
|------------ |  | ------------------------ |  | -------------- | ------ | ---- | - | ------ |  | - | ------
|Station      |  | Type of Agreement        |  | 2005           |        | 2004 |   | 2003  
|             |  |                          |  | (in thousands)
|KJTL/KJBO    |  | Joint Sales Agreement    |  | $              | 1,908  |      | $ | 1,984  |  | $ | 1,637 
|WFXP         |  | Time Brokerage Agreement |  |                | 151    |      |   | 142    |  |   | 143   
|KHMT         |  | Time Brokerage Agreement |  |                | 331    |      |   | 319    |  |   |      
|WFXW         |  | Joint Sales Agreement(1) |  |                | 950    |      |   | 995    |  |   | 77    
|KOLR         |  | Joint Sales Agreement    |  |                | 7,071  |      |   | 8,172  |  |   | 3,627 
|KCIT/KCPN-LP |  | Joint Sales Agreement    |  |                | 1,834  |      |   | 1,754  |  |   | 1,807 
|KAMC         |  | Joint Sales Agreement    |  |                | 2,652  |      |   | 2,386  |  |   | 2,913 
|WUTR         |  | Joint Sales Agreement(2) |  |                | 996    |      |   | 690    |  |   |      
|KSAN         |  | Joint Sales Agreement(3) |  |                | 676    |      |   | 429    |  |   |      
|WTVO         |  | Joint Sales Agreement(4) |  |                | 3,358  |      |   | 611    |  |   |      
|KRBC         |  | Joint Sales Agreement(5) |  |                | 1,152  |      |   | 1,101  |  |   |      
|KODE         |  | Joint Sales Agreement(6) |  |                | 2,379  |      |   | 879    |  |   |      
|WYOU         |  | Joint Sales Agreement(6) |  |                | 4,683  |      |   | 1,724  |  |   |      
|             |  |                          |  |                |        |      |   |        |  |   |       
|             |  | Total                    |  | $              | 28,141 |      | $ | 21,186 |  | $ | 10,204
|             |  |                          |  |                |        |      |   |        |  |   |       

---

|(1) | JSA became effective on May 9, 2003 and was amended on January 13, 2004.
|--- | ------------------------------------------------------------------------

|(2) | JSA became effective on April 1, 2004.
|--- | --------------------------------------

|(3) | JSA became effective on June 1, 2004.
|--- | -------------------------------------

|(4) | JSA became effective on November 1, 2004.
|--- | -----------------------------------------

|(5) | JSA became effective on July 1, 2004.
|--- | -------------------------------------

|(6) | JSA became effective on October 1, 2004.
|--- | ----------------------------------------

The table
below presents the expense associated with the local service agreements Missions stations have with Nexstar.



|             |  |                              |  |                |        |      |   |        |  |   |      
|------------ |  | ---------------------------- |  | -------------- | ------ | ---- | - | ------ |  | - | -----
|Station      |  | Type of Agreement            |  | 2005           |        | 2004 |   | 2003  
|             |  |                              |  | (in thousands)
|WYOU         |  | Shared Services Agreement(1) |  | $              | 2,400  |      | $ | 3,000  |  | $ | 3,000
|KODE         |  | Shared Services Agreement(2) |  |                | 1,200  |      |   | 1,897  |  |   | 1,929
|WFXW         |  | Shared Services Agreement(3) |  |                | 120    |      |   | 1,200  |  |   |     
|KRBC         |  | Shared Services Agreement(4) |  |                | 1,200  |      |   | 1,450  |  |   | 980  
|KSAN         |  | Shared Services Agreement(4) |  |                | 600    |      |   | 350    |  |   |     
|KJTL/KJBO    |  | Shared Services Agreement    |  |                | 840    |      |   | 840    |  |   |     
|KCIT/KCPN-LP |  | Shared Services Agreement    |  |                | 720    |      |   | 720    |  |   |     
|WTVO         |  | Shared Services Agreement    |  |                | 1,200  |      |   | 20     |  |   |     
|KAMC         |  | Shared Services Agreement    |  |                | 1,200  |      |   | 1,800  |  |   |     
|KOLR         |  | Shared Services Agreement    |  |                | 1,800  |      |   | 1,800  |  |   |     
|WUTR         |  | Shared Services Agreement(5) |  |                | 120    |      |   | 90     |  |   |     
|             |  |                              |  |                |        |      |   |        |  |   |      
|             |  | Total                        |  | $              | 11,400 |      | $ | 13,167 |  | $ | 5,909
|             |  |                              |  |                |        |      |   |        |  |   |      

---

|(1) | SSA became effective on January 5, 1998.
|--- | ----------------------------------------

|(2) | SSA became effective on April 1, 2002.
|--- | --------------------------------------

|(3) | SSA became effective on May 9, 2003 and was amended on January 13, 2004.
|--- | ------------------------------------------------------------------------



|(4) | SSA became effective on June 13, 2003.
|--- | --------------------------------------

|(5) | SSA became effective on April 1, 2004.
|--- | --------------------------------------



F-17



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

4. Related Party
Transactions(Continued)

Management Agreement

Missions sole shareholder and his spouse are parties to a management services agreement. Under this agreement, Mission pays the sole shareholder up
to $0.375 million per year for certain management services and pays his spouse by the hour for certain management services. Pursuant to the management services agreement, Mission paid compensation to its sole shareholder in the amount of $0.4
million, $0.3 million and $0.2 million for the years ended December 31, 2005, 2004 and 2003, respectively, which is included in selling, general and administrative expenses.

5. Property and Equipment

Property and equipment consisted of the following:



|                                                        |  |                               |              |                |         |      |  |   |         |  
|------------------------------------------------------- |  | ----------------------------- | ------------ | -------------- | ------- | ---- |  | - | ------- | -
|                                                        |  | Estimated useful life (years) |              |                |        
|                                                        |  |                               | December 31, |               
|                                                        |  |                               | 2005         |                |         | 2004 | 
|                                                        |  |                               |              | (in thousands) |        
|Buildings and building improvements                     |  | 39                            |              | $              | 6,499   |      |  | $ | 6,487   |  
|Land and land improvements                              |  | N/A-39                        |              |                | 1,479   |      |  |   | 1,479   |  
|Leasehold improvements                                  |  | term of lease                 |              |                | 60      |      |  |   | 220     |  
|Studio and transmission equipment                       |  | 5-15                          |              |                | 29,797  |      |  |   | 28,755  |  
|Office equipment and furniture                          |  | 3-7                           |              |                | 1,684   |      |  |   | 1,732   |  
|Vehicles                                                |  | 5                             |              |                | 1,271   |      |  |   | 1,338   |  
|Construction in progress                                |  | N/A                           |              |                | 63      |      |  |   | 6       |  
|                                                        |  |                               |              |                |         |      |  |   |         |  
|                                                        |  |                               |              |                | 40,853  |      |  |   | 40,017  |  
|Less: accumulated depreciation                          |  |                               |              |                | (19,751 | )    |  |   | (17,443 | )
|                                                        |  |                               |              |                |         |      |  |   |         |  
|Property and equipment, net of accumulated depreciation |  |                               |              | $              | 21,102  |      |  | $ | 22,574  |  
|                                                        |  |                               |              |                |         |      |  |   |         |  

The Company recorded depreciation expense in the amounts of $2.8 million, $2.6 million and $3.6
million for the years ended December 31, 2005, 2004 and 2003, respectively.

Sale of Towers

On May 11, 2001, the Company sold its telecommunications tower facilities associated with KCIT, KOLR, KHMT and KAMC for cash and entered into a
noncancellable operating lease for tower space. In 2001, the Company recorded a gain on the sale which has been deferred and is being recognized over the lease term which expires in May 2021. The proceeds from the sale of the towers were applied to
the outstanding loan amounts under the VHR and Mission of Amarillo credit facilities. The deferred gain at December 31, 2005 and 2004 was approximately $2.6 million and $2.8 million, respectively ($0.2 million was included in current
liabilities at December 31, 2005 and 2004).

6. Intangible Assets and Goodwill

Intangible assets subject to amortization consisted of the following:



|                                                |  |                               |                   |   |                          |  |   |         |   |       |   |                          |  |   |        |  |   |         |   |  |   |       
|----------------------------------------------- |  | ----------------------------- | ----------------- | - | ------------------------ |  | - | ------- | - | ----- | - | ------------------------ |  | - | ------ |  | - | ------- | - |  | - | ------
|                                                |  | Estimated useful life (years) |                   |   |                          | 
|                                                |  |                               | December 31, 2005 |   | December 31, 2004       
|                                                |  |                               | Gross             |   | Accumulated Amortization |  |   | Net     |   | Gross |   | Accumulated Amortization |  |   | Net   
|Network affiliation agreements                  |  | 15                            |                   | $ | 66,744                   |  | $ | (26,657 | ) |       | $ | 40,087                   |  | $ | 66,744 |  | $ | (22,208 | ) |  | $ | 44,536
|Other definite-lived intangible assets          |  | 1-15                          |                   |   | 14,117                   |  |   | (6,607  | ) |       |   | 7,510                    |  |   | 15,296 |  |   | (6,125  | ) |  |   | 9,171 
|                                                |  |                               |                   |   |                          |  |   |         |   |       |   |                          |  |   |        |  |   |         |   |  |   |       
|Total intangible assets subject to amortization |  |                               |                   | $ | 80,861                   |  | $ | (33,264 | ) |       | $ | 47,597                   |  | $ | 82,040 |  | $ | (28,333 | ) |  | $ | 53,707
|                                                |  |                               |                   |   |                          |  |   |         |   |       |   |                          |  |   |        |  |   |         |   |  |   |       



F-18



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

6. Intangible Assets and
Goodwill(Continued)

The aggregate carrying value of indefinite-lived intangibles, consisting of FCC licenses and goodwill, at
December 31, 2005 and 2004 was $45.4 million and $45.0 million, respectively. Indefinite-lived intangible assets are not subject to amortization, but are tested for impairment annually or whenever events or changes in circumstances indicate
that such assets might be impaired. The use of an indefinite life for FCC licenses contemplates the Companys historical ability to renew their licenses, that such renewals generally may be obtained indefinitely and at little cost, and that the
technology used in broadcasting is not expected to be replaced in the foreseeable future. Therefore, cash flows derived from the FCC licenses are expected to continue indefinitely.

The change in the carrying amount of goodwill for the years ended December 31, 2005 and 2004 is as follows:



|                                                    |  |                |        |      |   |       
|--------------------------------------------------- |  | -------------- | ------ | ---- | - | ------
|                                                    |  | December 31,  
|                                                    |  | 2005           |        | 2004
|                                                    |  | (in thousands)
|Beginning balance                                   |  | $              | 16,307 |      | $ | 11,583
|Acquisitions                                        |  |                | 344    |      |   | 1,555 
|Initial consolidation of VIEs and other adjustments |  |                |       |      |   | 3,169 
|                                                    |  |                |        |      |   |       
|Ending balance                                      |  | $              | 16,651 |      | $ | 16,307
|                                                    |  |                |        |      |   |       

The consummation of the acquisition of WTVO during 2005 increased goodwill by approximately $0.3
million. The acquisitions of WUTR and WFXW during 2004 increased goodwill by approximately $1.6 million. The application of FIN No. 46R for the consolidation of WTVO which occurred in the fourth quarter of 2004 increased goodwill by
approximately $3.3 million.

Total amortization expense from definite-lived intangibles for the years ended December 31, 2005, 2004
and 2003 was $6.1 million, $5.5 million and $5.9 million, respectively.

The estimated useful life of network affiliation agreements
contemplates renewals of the underlying agreements based on the Companys historical ability to renew such agreements without significant cost or modifications to the conditions from which the value of the affiliation was derived. These
renewals can result in estimated useful lives of individual affiliations ranging from 12 to 20 years. Management has determined that 15 years is a reasonable estimate within the range of such estimated useful lives.

The following table presents the Companys estimate of amortization expense for each of the five succeeding fiscal years for definite-lived
intangible assets recorded on its books as of December 31, 2005 (in thousands):



|                         |  |   |      
|------------------------ |  | - | -----
|Year ending December 31, |  |  
|2006                     |  | $ | 6,101
|2007                     |  | $ | 6,101
|2008                     |  | $ | 6,101
|2009                     |  | $ | 6,101
|2010                     |  | $ | 5,119

7. Debt

Long-term debt consisted of the following:



|                          |  |                |         |   |      |   |         |  
|------------------------- |  | -------------- | ------- | - | ---- | - | ------- | -
|                          |  | December 31,   |        
|                          |  | 2005           |         |   | 2004 |  
|                          |  | (in thousands) |        
|Term loans                |  | $              | 172,268 |   |      | $ | 151,240 |  
|Revolving credit facility |  |                |        |   |      |   | 21,500  |  
|                          |  |                |         |   |      |   |         |  
|                          |  |                | 172,268 |   |      |   | 172,740 |  
|Less: current portion     |  |                | (1,727  | ) |      |   | (1,520  | )
|                          |  |                |         |   |      |   |         |  
|                          |  | $              | 170,541 |   |      | $ | 171,220 |  
|                          |  |                |         |   |      |   |         |  



F-19



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

7. Debt(Continued)

Senior Secured Credit Facility

On April 1, 2005, Mission entered into an amended and restated senior secured credit facility agreement (the Mission Facility) with a group of commercial banks which replaced its previous bank credit facility that had
provided for a $152.0 million Term Loan D and a $30.0 million revolving loan. As revised, the Mission Facility consists of a $172.7 million Term Loan B and a $47.5 million revolving loan. Proceeds obtained under the Term Loan B were used to repay
Missions existing Term Loan D in the amount of $150.9 million plus accrued interest and repay outstanding borrowings under the revolving loan in the amount of $21.5 million plus accrued interest.

As of December 31, 2005 and 2004, Mission had $172.3 million and $151.2 million, respectively, outstanding under its Term Loan B and Term Loan D and
no borrowings and $21.5 million, respectively, were outstanding under its revolving loan.

The Term Loan B, matures in October 2012, is
payable in consecutive quarterly installments amortized at 0.25% quarterly, which commenced on December 31, 2005, with the remaining 93.25% due at maturity. The revolving loan, which is not subject to incremental reduction, matures in April
2012. Mission is required to prepay borrowings outstanding under the Mission Facility with certain net proceeds, recoveries and excess cash flows as defined in the credit facility agreement.

The Term Loan B bears interest at either the higher of the prevailing prime rate or the Federal Funds Rate plus 0.50% (the Base Rate), plus
an applicable margin of 0.50% or LIBOR plus 1.75%. The revolving loan bears interest at either the Base Rate plus an applicable margin ranging between 0.00% and 0.75%; or LIBOR plus an applicable margin ranging between 0.75% and 2.00%. Interest
rates are selected at Missions option and the applicable margin is adjusted quarterly as defined in the credit facility agreement. The total weighted-average interest rate of the Mission Facility was 6.28% and 4.43% at December 31, 2005
and 2004, respectively. Interest is payable periodically based on the type of interest rate selected. Additionally, Mission is required to pay quarterly commitment fees on the unused portion of its revolving loan commitment ranging from 0.375% to
0.50% per annum, based on the consolidated senior leverage ratio of Nexstar and Mission for that particular quarter.

As of
December 31, 2005, there were approximately $47.5 million of unused commitments under Missions senior secured credit facility. As of December 31, 2005, there was approximately $15 million of total available borrowings that could be
drawn under the Nexstar and Mission senior secured credit facilities.

Collateralization and Guarantees of Debt

Nexstar Broadcasting Group guarantees full payment of all obligations under Missions bank credit facility in the event of its default. Similarly,
Mission is a guarantor of Nexstars bank credit facility and the senior subordinated notes issued by Nexstar. The bank credit facilities are collateralized by a security interest in substantially all the combined assets, excluding FCC licenses,
of Nexstar and Mission.

Debt Covenants

Missions bank credit facility agreement does not contain financial covenant ratio requirements, but does provide for default in the event Nexstar does not adequately comply with all covenants
contained in its credit agreement.

Debt Maturities

At December 31, 2005, scheduled maturities of Missions debt (undiscounted) are summarized as follows (in thousands):



|                        |  |   |        
|----------------------- |  | - | -------
|Year ended December 31,
|2006                    |  | $ | 1,727  
|2007                    |  |   | 1,727  
|2008                    |  |   | 1,727  
|2009                    |  |   | 1,727  
|2010                    |  |   | 1,727  
|Thereafter              |  |   | 163,633
|                        |  |   |        
|                        |  | $ | 172,268
|                        |  |   |        



F-20



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

7. Debt(Continued)

Loss on Extinguishment of Debt

The redemption, repayment, refinancing or amendment of the Companys debt obligations may result in the write-off of debt financing costs previously capitalized and certain other costs incurred in the transaction. The refinancing of
Missions senior secured credit facility in April 2005 resulted in the write-off of $0.1 million of previously capitalized debt financing costs and $0.4 million of transaction costs during the second quarter of 2005. The amendment of
Missions senior secured credit facility in August 2004 resulted in the write-off of $0.8 million of previously capitalized debt financing costs and $0.3 million of transaction costs during the third quarter of 2004. The refinancing of
Missions senior secured credit facility in February 2003 resulted in the write-off of $1.0 million of previously capitalized debt financing costs during the first quarter of 2003. The amendment of Missions senior secured credit facility
in December 2003 resulted in the write-off of $0.8 million of previously capitalized debt financing costs during the fourth quarter of 2003. The repayment of the VHR and Mission of Amarillo credit facilities in December 2003 resulted in the
write-off of $0.7 million of previously capitalized debt financing costs during the fourth quarter of 2003. These amounts are included in loss on extinguishment of debt.

The following table summarizes the amounts included in loss on extinguishment of debt resulting from the transactions described above:



|                                                               |  |                          |     |      |   |       |  |   |      
|-------------------------------------------------------------- |  | ------------------------ | --- | ---- | - | ----- |  | - | -----
|                                                               |  | Years ended December 31,
|                                                               |  | 2005                     |     | 2004 |   | 2003 
|                                                               |  | (in thousands)          
|Refinancing of Missions senior secured credit facility        |  | $                        | 508 |      | $ |      |  | $ | 1,031
|Amendment of Missions senior secured credit facility          |  |                          |    |      |   | 1,094 |  |   | 838  
|Repayment of VHRs and Mission of Amarillos credit facilities |  |                          |    |      |   |      |  |   | 713  
|                                                               |  |                          |     |      |   |       |  |   |      
|Total loss on extinguishment of debt                           |  | $                        | 508 |      | $ | 1,094 |  | $ | 2,582
|                                                               |  |                          |     |      |   |       |  |   |      

8. Common Stock

The Company is 100% owned by one shareholder, David S. Smith. As of December 31, 2005, the Company has authorized, issued and outstanding 1,000 shares of common stock with a $1 dollar par value. Each share of
common stock is entitled to one vote.

9. Income Taxes

The provision for income taxes consisted of the following components:



|                      |  |                          |       |      |   |       |  |   |      
|--------------------- |  | ------------------------ | ----- | ---- | - | ----- |  | - | -----
|                      |  | Years Ended December 31,
|                      |  | 2005                     |       | 2004 |   | 2003 
|                      |  | (in thousands)          
|Current tax expense:  |  |                          |       |      |   |       |  |   |      
|Federal               |  | $                        |      |      | $ |      |  | $ |     
|State                 |  |                          | 3     |      |   | 23    |  |   | 32   
|                      |  |                          |       |      |   |       |  |   |      
|                      |  |                          | 3     |      |   | 23    |  |   | 32   
|                      |  |                          |       |      |   |       |  |   |      
|Deferred tax expense: |  |                          |       |      |   |       |  |   |      
|Federal               |  |                          | 1,179 |      |   | 974   |  |   | 2,280
|State                 |  |                          | 148   |      |   | 122   |  |   | 426  
|                      |  |                          |       |      |   |       |  |   |      
|                      |  |                          | 1,327 |      |   | 1,096 |  |   | 2,706
|                      |  |                          |       |      |   |       |  |   |      
|Income tax expense    |  | $                        | 1,330 |      | $ | 1,119 |  | $ | 2,738
|                      |  |                          |       |      |   |       |  |   |      

The Companys provision for income taxes is primarily comprised of deferred income taxes
created by an increase in the deferred tax liabilities position during the year resulting from the amortization of goodwill and other indefinite-lived intangible assets for income tax purposes which are not amortized for financial reporting
purposes. These deferred tax liabilities do not reverse on a scheduled basis and are not used to support the realization of deferred tax assets. The Companys deferred tax assets primarily result from federal and state net operating loss
carryforwards (NOLs). The Company provides a full valuation allowance for net deferred tax assets as it believes that it is more likely than not that the deferred tax assets will not be realized.



F-21



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

9. Income Taxes(Continued)

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate of 35% to loss from
operations before income taxes. The sources and tax effects of the differences were as follows:



|                                              |  |                          |        |   |      |   |        |      |  |   |        |  
|--------------------------------------------- |  | ------------------------ | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                              |  | Years Ended December 31, |       
|                                              |  | 2005                     |        |   | 2004 |   |        | 2003 | 
|                                              |  | (in thousands)           |       
|Tax benefit at statutory rates                |  | $                        | (2,763 | ) |      | $ | (1,606 | )    |  | $ | (3,804 | )
|Change in valuation allowance                 |  |                          | 4,323  |   |      |   | 3,173  |      |  |   | 7,039  |  
|State and local taxes, net of federal benefit |  |                          | (231   | ) |      |   | (459   | )    |  |   | (514   | )
|Other, net                                    |  |                          | 1      |   |      |   | 11     |      |  |   | 17     |  
|                                              |  |                          |        |   |      |   |        |      |  |   |        |  
|Income tax expense                            |  | $                        | 1,330  |   |      | $ | 1,119  |      |  | $ | 2,738  |  
|                                              |  |                          |        |   |      |   |        |      |  |   |        |  

The components of the net deferred tax asset and liability were as follows:



|                                 |  |                |         |   |      |   |         |  
|-------------------------------- |  | -------------- | ------- | - | ---- | - | ------- | -
|                                 |  | December 31,   |        
|                                 |  | 2005           |         |   | 2004 |  
|                                 |  | (in thousands) |        
|Deferred tax assets:             |  |                |         |  
|Net operating loss carryforwards |  | $              | 28,857  |   |      | $ | 24,372  |  
|Property and equipment           |  |                |        |   |      |   | 237     |  
|Other intangible assets          |  |                | 3,663   |   |      |   | 5,305   |  
|Deferred revenue                 |  |                | 1,022   |   |      |   | 1,128   |  
|Other                            |  |                | 317     |   |      |   | 282     |  
|                                 |  |                |         |   |      |   |         |  
|Total deferred tax assets        |  |                | 33,859  |   |      |   | 31,324  |  
|Valuation allowance              |  |                | (33,773 | ) |      |   | (31,324 | )
|                                 |  |                |         |   |      |   |         |  
|Net deferred tax assets          |  |                | 86      |   |      |   |        |  
|                                 |  |                |         |   |      |   |         |  
|Deferred tax liabilities:        |  |                |         |   |      |   |         |  
|Goodwill                         |  |                | (1,610  | ) |      |   | (1,151  | )
|FCC licenses                     |  |                | (2,880  | ) |      |   | (2,012  | )
|Other                            |  |                | (86     | ) |      |   |        |  
|                                 |  |                |         |   |      |   |         |  
|Total deferred tax liabilities   |  |                | (4,576  | ) |      |   | (3,163  | )
|                                 |  |                |         |   |      |   |         |  
|Net deferred tax liability       |  | $              | (4,490  | ) |      | $ | (3,163  | )
|                                 |  |                |         |   |      |   |         |  



F-22



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

9. Income Taxes(Continued)

The Company has provided a valuation allowance for deferred tax assets. The valuation allowance increased by $2.4 million and $1.0
million for the years ended December 31, 2005 and 2004, respectively, related to the generation of net operating losses and other deferred tax assets, the benefit of which may not be realized.

The Company establishes reserves for tax contingencies when, despite the belief that its tax return positions are fully supported, certain positions are
likely to be challenged and may not be fully sustained. The tax contingency reserves are analyzed on a quarterly basis and adjusted based on changes in facts and circumstances, such as the progress of federal and state audits, case law and emerging
legislation, The Company establishes tax reserves based upon managements assessment of potential tax exposures. While the Company believes that the amount of the tax estimates is reasonable, it is possible that the ultimate outcome of current
or future examinations may exceed current reserves or a favorable settlement of tax audits may result in a reduction of future tax provisions.

The
favorable or unfavorable outcome of tax examinations could have a material impact on the Companys results of operations. Any tax benefit from favorable settlement of tax audits would be recorded upon final resolution of the audit or expiration
of the statute of limitations. The Companys effective tax rate includes the impact of tax contingency reserves and changes to the reserves, including relatedinterest, as considered appropriate by management.

At December 31, 2005, the Company has NOLs available of approximately $73.5 million, which are available to reduce future taxable income if
utilized before their expiration. These net operating losses begin to expire in 2009 through 2024 if not utilized. Utilization of NOLs in the future may be limited if changes in the Companys ownership occurs.

10. FCC Regulatory Matters

Television
broadcasting is subject to the jurisdiction of the FCC under the Communications Act of 1934, as amended (the Communications Act). The Communications Act prohibits the operation of television broadcasting stations, except under a license
issued by the FCC, and empowers the FCC, among other things, to issue, revoke, and modify broadcasting licenses, determine the location of television stations, regulate the equipment used by television stations, adopt regulations to carry out the
provisions of the Communications Act and impose penalties for the violation of such regulations. The FCCs ongoing rule making proceedings could have a significant future impact on the television industry and on the operation of the
Companys stations and the stations it provides services to. In addition, the U.S. Congress may act to amend the Communications Act in a manner that could impact the Companys stations and the television broadcast industry in general.

Some of the more significant FCC regulatory matters impacting the Companys operations are discussed below.

Cable Retransmission Consent Rights

The Communications Act grants television broadcasters retransmission consent rights in connection with the carriage of their stations signal by cable companies. If a broadcaster chooses to exercise retransmission consent rights, a
cable television system which is subject to that election may not carry a stations signal without the broadcasters consent. This generally requires the cable system operator and the television broadcaster to negotiate the terms under
which the broadcaster will consent to the cable systems carriage of its stations signal. Mission has elected to exercise retransmission consent rights for all of its stations where it has a legal right to do so. Mission has negotiated
retransmission consent agreements with substantially all of the cable systems which carry the stations signals.

On October 20,
2005, the Company reached an agreement with Cox Communications, Inc. (Cox) for the retransmission of its stations signal in Abilene-Sweetwater, San Angelo, Lubbock and Amarillo, Texas; Springfield and Joplin, Missouri and
Pittsburg, Kansas. Under this agreement, Cox has agreed to compensate Mission for the right to carry the Companys stations in these markets. As a result, Cox now carries KRBC on its cable system in Abilene, Texas. KRBC had previously been off
of Coxs cable system when a retransmission consent agreement expired on December 31, 2004. In connection with the agreement, Cox has withdrawn a complaint it had submitted to the FCC against the Company.

On December 19, 2005, Mission reached an agreement with Cable ONE, Inc. (Cable ONE) for the retransmission of its stations signal
in Joplin, Missouri. Under this agreement, Cable ONE has agreed to compensate Mission for the right to carry the Companys stations in this market. As a result, Cable ONE now carries Missions television station KODE (Joplin-Pittsburg).
KODE had previously been off of Cable ONEs cable system when a retransmission consent agreement expired on December 31, 2004.



F-23



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

10. FCC Regulatory
Matters(Continued)

Digital Television (DTV) Conversion

FCC regulations required all commercial television stations in the United States to commence digital operations on a schedule determined by the FCC and
Congress, in addition to continuing their analog operations. All of the television stations we own and operate are broadcasting at least a low-power digital television signal and three television stations (WYOU, WUTR and WTVO) are broadcasting a
full-power digital television signal. The conversion to digital transmission required an average initial capital expenditure of $0.2 million per station for low-power transmission of a digital signal. Digital conversion expenditures were $0.8
million and $32 thousand, respectively, for the years ended December 31, 2005 and 2004.

On February 8, 2006, President Bush
signed into law legislation that establishes a February 17, 2009 deadline for television broadcasters to complete their transition to digital transmission and return their analog spectrum to the FCC. See Note 14 for a discussion of the impact
this new legislation is expected to have on the estimated useful lives of certain broadcasting equipment of the Company.

Full-Power
DTV Facilities Construction

The FCC has released rules setting the dates by which all television stations must be
broadcasting a full-power DTV signal. Under these rules, stations affiliated with the four largest networks (ABC, CBS, NBC and Fox) in the top-100 markets were required to construct full-power DTV facilities by July 1, 2005. All other stations
are required to construct full-power DTV facilities by July 1, 2006. Stations that fail to meet these build-out deadlines, and that have not requested an extension of time from the FCC, will lose interference protection for their signals
outside their low-power coverage areas. As of December 31, 2005, only Missions stations WUTR, WTVO and WYOU are transmitting full-power digital signals. Mission has filed a request for extension of time to construct full-power DTV
facilities for its top four network affiliates in the top one hundred market stations. The FCC has not yet acted on this request for extension of time.

The Company will incur various capital expenditures to modify its remaining stations DTV transmitters for full-power digital signal transmission, including costs for the transmitter, transmission line, antenna
and installation, and estimated costs for tower upgrades and/or modifications. The Company anticipates these expenditures will be funded through available cash on hand and cash generated from operations as incurred in future years.

Additional DTV Requirements

The FCC also adopted additional Program System and Information Protocol (PSIP) requirements. The equipment and related installation necessary to meet the PSIP requirements cost approximately $0.4 million in total for all of the
television stations the Company owns and operates. These expenditures were funded in 2005 through available cash on hand and cash generated from operations.



F-24



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

11. Commitments and Contingencies

Broadcast Rights Commitments

Broadcast rights acquired for cash and barter under license agreements are recorded as an asset and a corresponding liability at the inception of the license period. Future minimum payments arising from unavailable
future broadcast license commitments outstanding are as follows at December 31, 2005 (in thousands):



|                                                              |  |   |      
|------------------------------------------------------------- |  | - | -----
|Year ended December 31,                                       |  |  
|2006                                                          |  | $ | 409  
|2007                                                          |  |   | 1,016
|2008                                                          |  |   | 815  
|2009                                                          |  |   | 644  
|2010                                                          |  |   | 469  
|Thereafter                                                    |  |   | 248  
|                                                              |  |   |      
|Future minimum payments for unavailable cash broadcast rights |  | $ | 3,601
|                                                              |  |   |      

Unavailable broadcast rights commitments represent obligations to acquire cash and barter
program rights for which the license period has not commenced and, accordingly, for which no asset or liability has been recorded.

Operating Leases

The Company leases towers, office space and operating equipment under noncancelable operating lease
arrangements expiring through May 2027. Charges to operations for such leases aggregated approximately $1.3 million, $1.4 million and $1.0 million for the years ended December 31, 2005, 2004 and 2003, respectively. Future minimum lease payments
under these operating leases are as follows at December 31, 2005 (in thousands):



|                                                     |  |   |       
|---------------------------------------------------- |  | - | ------
|Year ended December 31,                              |  |  
|2006                                                 |  | $ | 1,018 
|2007                                                 |  |   | 1,061 
|2008                                                 |  |   | 1,102 
|2009                                                 |  |   | 1,052 
|2010                                                 |  |   | 949   
|Thereafter                                           |  |   | 14,415
|                                                     |  |   |       
|Future minimum lease payments under operating leases |  | $ | 19,597
|                                                     |  |   |       

Guarantees of Nexstar Debt

Mission is a guarantor of and has pledged substantially all its assets, excluding FCC licenses, to guarantee Nexstars bank credit facility.
Nexstars bank credit facility, which matures in 2012, consists of a $175.8 million term loan and a $50.0 million revolving loan.

Mission is also a guarantor of $200.0 million of 7% senior subordinated notes (7% Notes) due 2014 issued by Nexstar. The 7% Notes are general unsecured senior subordinated obligations subordinated to all of Missions senior
debt. Mission was a guarantor of $160.0 million of 12% senior subordinated notes (12% Notes) issued by Nexstar. The 12% Notes were redeemed by Nexstar on April 1, 2005.

Mission guarantees full payment of all obligations incurred under Nexstars bank credit facility agreement and senior subordinated notes. 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 Nexstars bank credit facility and the 7% Notes. At December 31, 2005, Nexstar has issued an aggregate principal amount of $200.0 million of senior subordinated notes and had
$175.4 million outstanding under its bank credit facility.



F-25



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

11. Commitments and
Contingencies(Continued)

Purchase Options Granted to Nexstar

In consideration of Nexstar Broadcasting Groups guarantee of Missions bank credit facility, Missions sole shareholder has granted
Nexstar a purchase option 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 stations broadcast 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. Broadcast cash flow is defined as income or loss from operations, plus depreciation and amortization (including
amortization of broadcast rights), interest income, non-cash trade and barter expenses, nonrecurring expenses (including time brokerage agreement fees), network compensation payments received or receivable and corporate management fees, less
payments for broadcast rights, non-cash trade and barter revenue and network compensation revenue. These option agreements are freely exercisable or assignable by Nexstar without consent or approval by Missions sole shareholder.

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 third 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 immaterial 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 in claims that arise out of the normal
course of its business. In the opinion of management, any resulting liability with respect to these claims would not have a material adverse effect on the Companys financial position or results of operations.

12. Employment Benefits

Retirement Savings
Plan

The Company and VHR have established retirement savings plans under Section 401(k) of the Internal Revenue Code (the
Plans). The Plans covers substantially all employees of the Company and former employees of VHR who meet minimum age and service requirements, and allows participants to defer a portion of their annual compensation on a pre-tax basis.
Contributions to the Plans may be made at the discretion of the Company and VHR. Mission recorded contributions of $13 thousand and $16 thousand for the years ended December 31, 2005 and 2004, respectively. VHR recorded contributions of $6
thousand for the year ended December 31, 2003.

Employee Benefits

Prior to January 2004, under a collective bargaining agreement, the Company contributed 3% of the gross monthly payroll of certain covered employees
toward their pension benefits. Effective in January 2004 these positions were transferred to Nexstar under a certain SSA. Therefore, in 2004, Nexstar contributed 3% of the gross monthly payroll of the employees covered under the collective
bargaining agreement. The Companys pension benefit contribution totaled $8 thousand for the year ended December 31, 2003.



F-26



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##### Table of Contents

##### Index to Financial Statements

MISSION BROADCASTING, INC.

NOTES TO FINANCIAL STATEMENTS(Continued)

13. Valuation and Qualifying Accounts

Allowance for Doubtful Accounts Rollforward



|                                                               |  |                                |        |                                         |   |                                        |  |               |       |  |                          |      |   |  |   |       
|-------------------------------------------------------------- |  | ------------------------------ | ------ | --------------------------------------- | - | -------------------------------------- |  | ------------- | ----- |  | ------------------------ | ---- | - |  | - | ------
|                                                               |  | Balance atBeginningof Period   |        | Additions Charged to Costs and
Expenses |   | Increase Due toAcquisitions            |  | Deductions(1) |       |  | Balance at End of Period
|                                                               |  | (in thousands)                
|Year ended December 31, 2003                                   |  | $                              | 55     |                                         | $ | 58                                     |  | $             | 125   |  | $                        | (68  | ) |  | $ | 170   
|Year ended December 31, 2004                                   |  |                                | 170    |                                         |   | 46                                     |  |               |      |  |                          | (216 | ) |  |   |      
|Year ended December 31, 2005                                   |  |                                |       |                                         |   |                                       |  |               |      |  |                          |     |   |  |   |      
|(1)     Uncollectible accounts written off, net of
recoveries.
|                                                              
|Valuation Allowance for Deferred Tax Assets Rollforward       
|                                                               |  |                                |        |                                         |  
|                                                               |  | Balance at Beginning of
Period |        | Additions Charged to Costsand Expenses  |   | Additions Charged to Other Accounts(1) |  | Deductions    |       |  | Balance at End of Period
|                                                               |  | (in thousands)                
|Year ended December 31, 2003                                   |  | $                              | 24,774 |                                         | $ |                                       |  | $             | 5,568 |  | $                        |     |   |  | $ | 30,342
|Year ended December 31, 2004                                   |  |                                | 30,342 |                                         |   |                                       |  |               | 982   |  |                          |     |   |  |   | 31,324
|Year ended December 31, 2005                                   |  |                                | 31,324 |                                         |   |                                       |  |               | 2,449 |  |                          |     |   |  |   | 33,773

---

|(1) | Increase in valuation allowance related to the generation of net operating losses and other deferred tax assets.
|--- | ----------------------------------------------------------------------------------------------------------------

14. Subsequent Events

On January 24, 2006, the
owners of UPN and WB announced that the two television networks will merge to form a new network called The CW. The Company operates one UPN affiliated station located in Wichita Falls, Texas. The Company is currently evaluating the impact the
merger will have on its financial position and results of operations.

On February 8, 2006, President Bush signed into law legislation
that establishes a February 17, 2009 deadline for television broadcasters to complete their transition to digital transmission and return their analog spectrum to the FCC. As a result, the Company is currently reassessing the estimated useful
lives of its analog transmission equipment, which will accelerate future depreciation expense. The Company estimates that the useful lives and depreciation expense with respect to equipment having a net book value of approximately $2.4 million as of
December 31, 2005, is subject to change. Such equipment is presently being depreciated over various remaining useful lives, which extend from 2013 to 2020. The Company intends to depreciate the affected analog equipment over a remaining useful
life of three years and estimates this change will increase annual depreciation expense by approximately $0.6 million.



F-27



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##### Table of Contents

##### Index to Financial Statements

|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|2.1         |  | Certificate of Ownership and Merger of Mission Broadcasting of Joplin, Inc. into Mission Broadcasting of Wichita Falls, Inc., dated September 30, 2002. (Incorporated by reference to Exhibit
2.1 to Annual Report on Form 10-K for the year ended December 31, 2002 (File No. 333-62916-02) filed by Mission Broadcasting of Wichita Falls, Inc.)                                                                                                                                                                                             
|            | 
|2.2         |  | Agreement of Merger of Bastet Broadcasting, Inc. and Mission Broadcasting of Wichita Falls, Inc. dated September 30, 2002. (Incorporated by reference to Exhibit 2.2 to Annual Report on Form
10-K for the year ended December 31, 2002 (File No. 333-62916-02) filed by Mission Broadcasting of Wichita Falls, Inc.)                                                                                                                                                                                                                          
|            | 
|2.3         |  | Certificate of Merger of Bastet Broadcasting, Inc. and Mission Broadcasting of Wichita Falls, Inc. dated September 30, 2002. (Incorporated by reference to Exhibit 2.3 to Annual Report on Form
10-K for the year ended December 31, 2002 (File No. 333-62916-02) filed by Mission Broadcasting of Wichita Falls, Inc.)                                                                                                                                                                                                                        
|            | 
|3.1         |  | Certificate of Incorporation of Mission Broadcasting, Inc. (f/k/a Mission Broadcasting of Wichita Falls, Inc.) (Incorporated by reference to Exhibit 3.1 to Annual Report on Form 10-K for the
year ended December 31, 2002 (File No. 333-62916-02) filed by Mission Broadcasting of Wichita Falls, Inc.)                                                                                                                                                                                                                                      
|            | 
|3.2         |  | By-laws of Mission Broadcasting, Inc. (f/k/a Mission Broadcasting of Wichita Falls, Inc.) (Incorporated by reference to Exhibit 3.2 to Annual Report on Form 10-K for the year ended December
31, 2002 (File No. 333-62916-02) filed by Mission Broadcasting of Wichita Falls, Inc.)                                                                                                                                                                                                                                                           
|            | 
|4.1         |  | Indenture, among Nexstar Finance, L.L.C., Nexstar Finance, Inc., the guarantors party thereto and The Bank of New York, as successor to United States Trust Company of New York, dated as of
March 16, 2001. (Incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-4 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                                                                                                                  
|            | 
|4.2         |  | Registration Rights Agreement, by and among Nexstar Finance, L.L.C., Nexstar Finance, Inc., the guarantors party thereto, Banc of America Securities LLC, Barclays Capital Inc., CIBC World
Markets Corp. and First Union Securities, Inc., dated as of March 16, 2001. (Incorporated by reference to Exhibit 4.2 to Registration Statement on Form S-4 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance,
Inc.)                                                                                                       
|            | 
|4.3         |  | Indenture, among Nexstar Finance Holdings, L.L.C., Nexstar Finance Holdings, Inc., Bastet Broadcasting, Inc., Mission Broadcasting of Wichita Falls, Inc., Nexstar Broadcasting Group, L.L.C.
and The Bank of New York, as successor to United States Trust Company of New York, dated as of May 17, 2001. (Incorporated by reference to Exhibit 4.1 to Registration Statement on Form S-4 (File No. 333-68964) filed by Nexstar Finance Holdings,
L.L.C. and Nexstar Finance Holdings, Inc.)                                                  
|            | 
|10.1        |  | Purchase Agreement by and among Nexstar Finance, L.L.C., Nexstar Finance, Inc., Banc of America Securities LLC, Barclays Capital Inc., CIBC World Markets Corp. and First Union Securities,
Inc., dated March 13, 2001. (Incorporated by reference to Exhibit 10.1 to Registration Statement on Form S-4 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                                                                                                      
|            | 
|10.2        |  | First Amendment to Amended and Restated Credit Agreement and Limited Consent dated as of November 14, 2001, among Nexstar Finance, L.L.C., Bank of America, N.A. and the other parties signatory
thereto. (Incorporated by reference to Exhibit 10.4 to Annual Report on Form 10-K for the year ended December 31, 2001 (File No. 333-68964) filed by Nexstar Finance Holdings, L.L.C. and Nexstar Finance Holdings, Inc.)                                                                                                                     
|            | 
|10.3        |  | Amended and Restated Credit Agreement, dated as of June 14, 2001, by and among Nexstar Finance, L.L.C., Nexstar Broadcasting Group, L.L.C. and certain of its Subsidiaries from time to time
parties thereto, the several financial institutions from time to time parties thereto, Bank of America, N.A., Barclays Bank PLC and First Union National Bank. (Incorporated by reference to Exhibit 10.4 to Registration Statement on Form S-4 (File No.
333-68964) filed by Nexstar Finance Holdings, L.L.C. and Nexstar Finance Holdings, Inc.)
|            | 
|10.4        |  | First Amendment to Credit Agreement and Limited Consent, among Nexstar Finance, L.L.C., Nexstar Broadcasting Group, L.L.C., the Parent Guarantors named therein, the several Banks named therein
and Bank of America, N.A., dated as of May 17, 2001. (Incorporated by reference to Exhibit 10.5 to Registration Statement on Form S-4 (File No. 333-68964) filed by Nexstar Finance Holdings, L.L.C. and Nexstar Finance Holdings, Inc.)                                                                                                      
|            | 
|10.5        |  | Credit Agreement, by and among Nexstar Finance, L.L.C., the parent guarantors party thereto, Bank of America, N.A., CIBC Inc., Firstar Bank, N.A., Barclays Bank PLC and First Union National
Bank, dated as of January 12, 2001. (Incorporated by reference to Exhibit 10.2 to Registration Statement on Form S-4 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                                                                                            
|            | 
|10.6        |  | Third Amendment to Credit Agreement, Limited Consent and Assumption Agreement Consent, dated as of November 14, 2001, among Bastet Broadcasting, Inc., Mission Broadcasting of Wichita Falls, Inc.
and Mission Broadcasting of Joplin, Inc., Bank of America, N.A. and the other parties signatories thereto. (Incorporated by reference to Exhibit 10.8 to Annual Report on Form 10-K for the year ended December 31, 2001 (File No. 333-68964) filed by
Nexstar Finance Holdings, L.L.C. and Nexstar Finance Holdings, Inc.)                 
|            | 
|10.7        |  | Credit Agreement, by and among Bastet Broadcasting, Inc., Mission Broadcasting of Wichita Falls, Inc., Bank of America, N.A., Barclays Bank PLC and First Union National Bank, dated as of January
12, 2001. (Incorporated by reference to Exhibit 10.3 to Registration Statement on Form S-4 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                                                                                                                 



E-1



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##### Table of Contents

##### Index to Financial Statements

|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|10.8        |  | Guaranty Agreement, dated as of January 12, 2001, executed by Bastet Broadcasting, Inc. and Mission Broadcasting of Wichita Falls, Inc. (Incorporated by reference to Exhibit 10.6 to Registration
Statement on Form S-4 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                                                                                                                 
|            | 
|10.9        |  | Purchase and Sale Agreement, dated as of December 31, 2001, by and among Mission Broadcasting of Joplin, Inc., GOCOM Broadcasting of Joplin, LLC and GOCOM of Joplin License Sub, LLC.
(Incorporated by reference to Exhibit 10.24 to Annual Report on Form 10-K for the year ended December 31, 2001 (File No. 333-68964) filed by Nexstar Finance Holdings, L.L.C. and Nexstar Finance Holdings, Inc.)                                                                  
|            | 
|10.10       |  | Time Brokerage Agreement, dated as of December 31, 2001, by and between GOCOM of Joplin License Sub, LLC and Mission Broadcasting of Joplin, Inc. (Incorporated by reference to Exhibit 10.25 to
Annual Report on Form 10-K for the year ended December 31, 2001 (File No. 333-68964) filed by Nexstar Finance Holdings, L.L.C. and Nexstar Finance Holdings, Inc.)                                                                                                       
|            | 
|10.11       |  | Guaranty Agreement, dated as of January 12, 2001, executed by the subsidiary guarantors defined therein in favor of the guaranteed parties defined therein. (Incorporated by reference to
Exhibit 10.5 to Registration Statement on Form S-4 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                                                                                             
|            | 
|10.12       |  | Guaranty Agreement, dated as of June 5, 2002, among Bastet Broadcasting, Inc., Mission Broadcasting of Wichita Falls, Inc. (Incorporated by reference to Exhibit 10.10 to Registration Statement
on Form S-4 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                                                                                                                             
|            | 
|10.13       |  | Security Agreement, dated as of January 12, 2001, made by each of the several banks named therein and Bank of America, N.A. (Incorporated by reference to Exhibit 10.9 to Registration
Statement on Form S-4 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                                                                                                                             
|            | 
|10.14       |  | Option Agreement, dated as of January 12, 2001, made by each of the Nexstar Broadcasting of Wichita Falls, L.P. (Incorporated by reference to Exhibit 10.10 to Registration Statement on Form S-4
(File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                                                                                                                                        
|            | 
|10.15       |  | Shared Services Agreement, dated as of June 1, 1999, among Mission Broadcasting of Joplin, Inc., David Smith and Nexstar Broadcasting of Wichita Falls, L.P. (Incorporated by reference to Exhibit
10.24 to Registration Statement on Form S-1 (File No. 333-86994) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                                                            
|            | 
|10.16       |  | Agreement, dated as of June 1, 1999, among Mission Broadcasting of Joplin, Inc. (Incorporated by reference to Exhibit 10.25 to Registration Statement on Form S-1 (File No. 333-86994) filed by
Nexstar Broadcasting Group, Inc.)                                                                                                                                                                                                                                         
|            | 
|10.17       |  | Option Agreement, dated as of June 5, 2002, among Nexstar Finance, L.P. (Incorporated by reference to Exhibit 10.5 to Registration Statement on Form S-1 (File No. 333-86994) filed by Nexstar
Broadcasting Group, Inc.)                                                                                                                                                                                                                                                  
|            | 
|10.18       |  | Shared Services Agreement, dated as of June 5, 2002, among Bastet Broadcasting, Inc. (Incorporated by reference to Exhibit 10.10 to Registration Statement on Form S-1 (File No. 333-86994) filed
by Nexstar Broadcasting Group, Inc.)                                                                                                                                                                                                                                    
|            | 
|10.19       |  | Option Agreement, dated as of November 30, 2002, among Bastet Broadcasting, Inc., David Smith and Nexstar Broadcasting Group, L.L.C. (Incorporated by reference to Exhibit 10.37 to Amendment No.
2 to Registration Statement on Form S-1 (File No. 333-86994) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                                                                 
|            | 
|10.20       |  | Time Brokerage Agreement, dated as of April 1, 1996, by and between SJL Communications, L.P. and NV Acquisitions Co. (Incorporated by reference to Exhibit 10.48 to Amendment No. 2 to
Registration Statement on Form S-1 (File No. 333-86994) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                                                                                 
|            | 
|10.21       |  | Shared Services Agreement, dated as of June 1, 1999, among Mission Broadcasting of Wichita Falls, Inc., David Smith and NV Acquisitions Co. (Incorporated by reference to Exhibit 10.43 to
Amendment No. 2 to Registration Statement on Form S-1 (File No. 333-86994) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                                                          
|            | 
|10.22       |  | Agreement, dated as of June 1, 1999, among Mission Broadcasting of Joplin, Inc. and Nexstar Broadcasting of Joplin, L.P. (Incorporated by reference to Exhibit 10.44 to Amendment No. 2 to
Registration Statement on Form S-1 (File No. 333-86994) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                                                                             
|            | 
|10.23       |  | Shared Services Agreement, dated as of April 1, 2002, by and between Mission Broadcasting of Joplin, Inc. and Nexstar Broadcasting of Joplin, L.L.C. (Incorporated by reference to Exhibit 10.51
to Amendment No. 2 to Registration Statement on Form S-1 (File No. 333-86994) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                                                 
|            | 
|10.24       |  | Amendment to Option Agreements, dated as of October 18, 2002, among Mission Broadcasting, Inc., David Smith, Nexstar Broadcasting of Northeastern Pennsylvania, L.L.C., Nexstar Broadcasting
Group, L.L.C., Nexstar Broadcasting of Wichita Falls, L.L.C., and Nexstar Broadcasting of Joplin, L.L.C. (Incorporated by reference to Exhibit 10.54 to Amendment No. 2 to Registration Statement on Form S-1 (File No. 333-86994) filed by Nexstar
Broadcasting Group, Inc.)
|            | 
|10.25       |  | Asset Purchase Agreement, dated as of December 13, 2002, by and among LIN Television Corporation, TVL Broadcasting of Abilene, Inc., Abilene Broadcasting, L.L.C. and Mission Broadcasting, Inc.
(Incorporated by reference to Exhibit 10.47 to Annual Report on Form 10-K for the year ended December 31, 2002 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                          



E-2



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##### Table of Contents

##### Index to Financial Statements

|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|10.26       |  | Local Marketing Agreement, dated as of December 13, 2002, by and among LIN Television Corporation, TVL Broadcasting of Abilene, Inc., Abilene Broadcasting, L.L.C. and Mission Broadcasting, Inc.
(Incorporated by reference to Exhibit 10.48 to Annual Report on Form 10-K for the year ended December 31, 2002 (File No. 333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)                                                                                                                                                                                                                                                                                                                                                                                      
|            | 
|10.27       |  | Second Amended and Restated Credit Agreement, dated as of February 13, 2003, among Nexstar Finance, L.L.C., Nexstar Broadcasting Group, L.L.C. and certain of its subsidiaries from time to time
parties thereto, the several financial institutions from time to time parties thereto, Bank of America, N.A., as Administrative Agent, Bear Stearns Corporate Lending, Inc., as Syndication Agent, and Royal Bank of Canada, General Electric Capital
Corporation and Merrill Lynch Capital, a Division of Merrill Lynch Business Financial Services Inc., as Co-Documentation Agents. (Incorporated by reference to Exhibit 10.52 to Annual Report on Form 10-K for the year ended December 31, 2003 (File No.
333-62916) filed by Nexstar Finance, L.L.C. and Nexstar Finance, Inc.)
|            | 
|10.28       |  | Amended and Restated Credit Agreement, dated as of February 13, 2003, among Mission Broadcasting, Inc., the several financial institutions from time to time parties thereto, Bank of America,
N.A., as Administrative Agent, Bear Stearns Corporate Lending, Inc., as Syndication Agent, and Royal Bank of Canada, General Electric Capital Corporation and Merrill Lynch Capital, a Division of Merrill Lynch Business Financial Services Inc., as
Co-Documentation Agents. (Incorporated by reference to Exhibit 10.28 to Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 333-62916-02) filed by Mission Broadcasting, Inc.)                                                                                                                              
|            | 
|10.29       |  | Second Amended and Restated Credit Agreement, dated as of December 30, 2003, among Mission Broadcasting, Inc., the several financial institutions from time to time parties thereto, Bank of
America, N.A., as Administrative Agent, Bear Stearns Corporate Lending, Inc., as Syndication Agent, and Royal Bank of Canada, General Electric Capital Corporation and Merrill Lynch Capital, a Division of Merrill Lynch Business Financial Services
Inc., as Co-Documentation Agents. (Incorporated by reference to Exhibit 10.86 to Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 000-50478) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                    
|            | 
|10.30       |  | Shared Services Agreement, dated as of June 13, 2003, by and between Mission Broadcasting, Inc. and Nexstar Broadcasting of Abilene, L.L.C. (Incorporated by reference to Exhibit 10.63 on
Registration Statement on Form S-1 (File No. 333-86994) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|            | 
|10.31       |  | Option Agreement, dated as of June 13, 2003, among Mission Broadcasting, Inc., David Smith and Nexstar Broadcasting of Abilene, L.L.C. (Incorporated by reference to Exhibit 10.64 on Registration
Statement on Form S-1 (File No. 333-86994) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|            | 
|10.32       |  | Shared Services Agreement, dated as of May 9, 2003, by and between Mission Broadcasting, Inc. and Nexstar Broadcasting of the Midwest, Inc. (Incorporated by reference to Exhibit 10.1 to
Quarterly Report on Form 10-Q for the period ended June 30, 2003 (File No. 333-62916-02) filed by Mission Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|            | 
|10.33       |  | Agreement for the Sale of Commercial Time, dated as of May 9, 2003, by and between Mission Broadcasting, Inc. and Nexstar Broadcasting of the Midwest, Inc. (Incorporated by reference to
Exhibit 10.2 to Quarterly Report on Form 10-Q for the period ended June 30, 2003 (File No. 333-62916-02) filed by Mission Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                
|            | 
|10.34       |  | Option Agreement, dated as of May 9, 2003, among Mission Broadcasting, Inc., David Smith and Nexstar Broadcasting of the Midwest, Inc. (Incorporated by reference to Exhibit 10.3 to Quarterly
Report on Form 10-Q for the period ended June 30, 2003 (File No. 333-62916-02) filed by Mission Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|            | 
|10.35       |  | Indenture, among Nexstar Finance Holdings, L.L.C., Nexstar Finance Holdings, Inc., Mission Broadcasting, Inc. and The Bank of New York, dated as of March 27, 2003. (Incorporated by reference to
Exhibit 4.4 to Quarterly Report on Form 10-Q for the period ended March 31, 2003 (File No. 333-68964) filed by Nexstar Finance Holdings, L.L.C. and Nexstar Finance Holdings, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                  
|            | 
|10.36       |  | Limited Consent and Limited Waiver to Credit Agreement, dated as of September 5, 2003, among Mission Broadcasting, Inc., the several Banks parties thereto and Bank of America, N.A. (Incorporated
by reference to Exhibit 10.80 on Registration Statement on Form S-1 (File No. 333-86994) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|            | 
|10.37       |  | First Restated Guaranty Agreement, dated as of December 30, 2003, executed by Mission Broadcasting, Inc. in favor of the banks set forth therein. (Incorporated by reference to Exhibit 10.37
to Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 333-62916-02) filed by Mission Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|            | 
|10.38       |  | First Restated Security Agreement, dated as of December 30, 2003, by Mission Broadcasting, Inc. in favor of Bank of America, N.A., as collateral agent. (Incorporated by reference to Exhibit
10.38 to Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 333-62916-02) filed by Mission Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|            | 
|10.39       |  | First Restated Pledge and Security Agreement, dated as of December 30, 2003, by Mission Broadcasting, Inc. in favor of Bank of America, N.A., as collateral agent. (Incorporated by reference to
Exhibit 10.39 to Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 333-62916-02) filed by Mission Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                         



E-3



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##### Table of Contents

##### Index to Financial Statements

|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|10.40       |  | Third Amended and Restated Credit Agreement, dated as of December 30, 2003, among Nexstar Broadcasting, Inc., Nexstar Broadcasting Group, Inc. and certain of its subsidiaries from time to time
parties thereto, the several financial institutions from time to time parties thereto, Bank of America, as Administrative Agent, Bear Stearns Corporate Lending, Inc., as Syndication Agent, and Royal Bank of Canada, General Electric Capital
Corporation and Merrill Lynch Capital, a Division of Merrill Lynch Business Financial Services Inc., as Co-Documentation Agents. (Incorporated by reference to Exhibit 10.85 to Annual Report on Form 10-K for the year ended December 31, 2003 (File No.
000-50478) filed by Nexstar Broadcasting Group, Inc.)
|            | 
|10.41       |  | Indenture, among Nexstar Broadcasting, Inc., the guarantors and The Bank of New York, dated as of December 30, 2003 (Incorporated by reference to Exhibit 10.91 to Annual Report on Form 10-K for
the year ended December 31, 2003 (File No. 000-50478) filed by Nexstar Broadcasting Group, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|            | 
|10.42       |  | Registration Rights Agreement, by and among Nexstar Broadcasting, Inc. (f/k/a Nexstar Finance, Inc.), Mission Broadcasting, Inc., Banc of America Securities LLC, Bear, Stearns & Co. Inc. and
RBC Dominion Securities Corporation, dated as of December 30, 2003 (Incorporated by reference to Exhibit 10.92 to Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 000-50478) filed by Nexstar Broadcasting Group,
Inc.)                                                                                                                                                                                                                                                                                                                
|            | 
|10.43       |  | Amendment to Agreement for Sale of Commercial Time, dated December 30, 2003, by and between Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. (KAMC-KLBK). (Incorporated by reference to
Exhibit 10.91 to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                              
|            | 
|10.44       |  | Amendment to Shared Services Agreement, dated December 30, 2003, by and between Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. (KAMC-KLBK). (Incorporated by reference to Exhibit 10.92
to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                          
|            | 
|10.45       |  | Amendment to Agreement for Sale of Commercial Time, dated December 30, 2003, by and between Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. (KOLR-KSFX (formerly KDEB)). (Incorporated
by reference to Exhibit 10.93 to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                              
|            | 
|10.46       |  | Amendment to Shared Services Agreement, dated December 30, 2003, by and between Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. (KOLR-KSFX). (Incorporated by reference to Exhibit 10.94
to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                          
|            | 
|10.47       |  | Amendment to Agreement for Sale of Commercial Time, dated January 1, 2004, by and between Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. (KCIT-KAMR). (Incorporated by reference to
Exhibit 10.95 to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                
|            | 
|10.48       |  | Amendment to Shared Services Agreement, dated January 1, 2004, by and between Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. (KCIT-KAMR). (Incorporated by reference to Exhibit 10.96
to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                            
|            | 
|10.49       |  | Amendment to Agreement for Sale of Commercial Time, dated January 13, 2004, by and between Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. (WFXW (formerly WBAK)-WTWO). (Incorporated by
reference to Exhibit 10.97 to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                               
|            | 
|10.50       |  | Amendment to Shared Services Agreement, dated January 13, 2004, by and between Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. (WFXW-WTWO). (Incorporated by reference to Exhibit 10.98
to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                           
|            | 
|10.51       |  | Agreement for Sale of Commercial Time, dated April 1, 2004, by and between Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. (WUTR-WFXV). (Incorporated by reference to Exhibit 10.99 to
Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                               
|            | 
|10.52       |  | Shared Services Agreement, dated April 1, 2004, by and between Nexstar Broadcasting, Inc. and Mission Broadcasting, Inc. (WUTR-WFXV). (Incorporated by reference to Exhibit 10.100 to Amendment
No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|            | 
|10.53       |  | Amendment to Agreement for Sale of Commercial Time, dated January 1, 2004, by and between Nexstar Broadcasting, Inc. (as successor to Nexstar Broadcasting of Wichita Falls, L.P.) and Mission
Broadcasting, Inc. (f/k/a Mission Broadcasting of Wichita Falls, Inc.) (KJBO-KFDX). (Incorporated by reference to Exhibit 10.101 to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting,
Inc.)                                                                                                                                                                                                                                                                                                             
|            | 
|10.54       |  | Amendment to Shared Services Agreement, dated January 1, 2004, by and between Nexstar Broadcasting, Inc. (as successor to Nexstar Broadcasting of Wichita Falls, L.P.) and Mission Broadcasting,
Inc. (f/k/a Mission Broadcasting of Wichita Falls, Inc.) (KJBO-KFDX). (Incorporated by reference to Exhibit 10.102 to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-114963) filed by Nexstar Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                         



E-4



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##### Table of Contents

##### Index to Financial Statements

|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|10.55       |  | Consent and First Amendment to the Mission Credit Agreement. (Incorporated by reference to Exhibit 99.1 to Current Report on Form 8-K (File No. 333-62916-02) filed by Mission Broadcasting,
Inc. on August 20, 2004).                                                                                                                                                                                                                                                                                                                                                                                                                                            
|            | 
|10.56       |  | Asset Purchase Agreement, dated October 4, 2004, by and among Mission Broadcasting, Inc., Young Broadcasting, Inc. and Winnebago Television Corporation. (Incorporated by reference to Exhibit
2.1 to Current Report on Form 8-K (File No. 333-62916-02) filed by Mission Broadcasting, Inc. on October 8, 2004).                                                                                                                                                                                                                                                                                                                                                 
|            | 
|10.57       |  | Supplemental Indenture, dated as of April 1, 2005, among Nexstar Broadcasting, Inc., Nexstar Broadcasting Group, Inc., Mission Broadcasting, Inc., and The Bank of New York, as Trustee.
(Incorporated by reference to Exhibit 99.4 to the Current Report on Form 8-K (File No. 000-50478) filed by Nexstar Broadcasting Group, Inc. on April 6, 2005)                                                                                                                                                                                                                                                                                                            
|            | 
|10.58       |  | Registration Rights Agreement, dated April 1, 2005, by and among Nexstar Broadcasting, Inc., Nexstar Broadcasting Group, Inc., Mission Broadcasting, Inc., Banc of America Securities LLC, UBS
Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated. (Incorporated by reference to Exhibit 4.7 to Registration Statement on Form S-4 (File No. 333-125847) filed by Nexstar Broadcasting, Inc. on April 6, 2005)                                                                                                                                                                                                                                 
|            | 
|10.59       |  | Guarantee, dated as of April 1, 2005, of Nexstar Broadcasting Group, Inc. executed pursuant to the Indenture dated as of December 30, 2003, among Nexstar Broadcasting, Inc., Mission
Broadcasting, Inc. and The Bank of New York, as Trustee, as amended and supplemented by the Supplemental Indenture (as defined therein). (Incorporated by reference to Exhibit 99.5 to the Current Report on Form 8-K (File No. 000-50478) filed by
Nexstar Broadcasting Group, Inc. on April 6, 2005)                                                                                                                                                                      
|            | 
|10.60       |  | Third Amended and Restated Credit Agreement, dated as of April 1, 2005, among Mission Broadcasting, Inc., the several banks and other financial institutions or entities from time to time
parties thereto, Bank of America, N.A., as the Administrative Agent for the Lenders, and UBS Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Co-Syndication Agents. (Incorporated by reference to Exhibit 99.1 to the
Current Report on Form 8-K (File No. 333-62916-02) filed by Mission Broadcasting, Inc. on April 7, 2005)                                                                                                               
|            | 
|10.61       |  | First Amendment and Confirmation Agreement to Mission Guarantee of Nexstar Obligations, dated as of April 1, 2005, by and among Mission Broadcasting, Inc. as Guarantor and Bank of America,
N.A. as Collateral Agent, on behalf of the Majority Lenders (as defined therein). (Incorporated by reference to Exhibit 99.2 to the Current Report on Form 8-K (File No. 333-62916-02) filed by Mission Broadcasting, Inc. on April 7,
2005)                                                                                                                                                                                                                         
|            | 
|10.62       |  | Confirmation Agreement for the Smith Pledge Agreement, dated as of April 1, 2005, by David S. Smith and Bank of America, N.A. as Collateral Agent. (Incorporated by reference to Exhibit 99.3
to the Current Report on Form 8-K (File No. 333-62916-02) filed by Mission Broadcasting, Inc. April 7, 2005)                                                                                                                                                                                                                                                                                                                                                        
|            | 
|10.63       |  | Fourth Amended and Restated Credit Agreement, dated as of April 1, 2005, among Nexstar Broadcasting, Inc., Nexstar Broadcasting Group, Inc., certain of its subsidiaries from time to time
parties to the Credit Agreement, the several banks and other financial institutions or entities from time to time parties hereto, Bank of America, N.A., as the Administrative Agent for the Lenders, and UBS Securities LLC and Merrill Lynch, Pierce,
Fenner & Smith Incorporated, as Co-Syndication Agents. (Incorporated by reference to Exhibit 99.1 to the Current Report on Form 8-K (File No. 000-50478) filed by Nexstar Broadcasting, Inc., on April 6, 2005)
|            | 
|14.1        |  | Mission Broadcasting, Inc. Code of Ethics. (Incorporated by reference to Exhibit 14.1 to Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 333-62916-02) filed by
Mission Broadcasting, Inc.)                                                                                                                                                                                                                                                                                                                                                                                                                                             
|            | 
|23.1        |  | Consent Letter issued by PricewaterhouseCoopers LLP on March 31, 2006.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|            | 
|31.1        |  | Certification of David S. Smith pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|            | 
|32.1        |  | Certification of David S. Smith pursuant to 18 U.S.C. ss. 1350.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

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|* | Filed Herewith
|- | --------------



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