DESCRIPTION OF THE MATERIAL TERMS OF
LOCAL CORPORATION RETENTION PROGRAM
AS OF JANUARY 16, 2013
The Local Corporation Retention Program (the “Retention Program”) provides for the payment of a retention bonus to all employees of Local Corporation (the “Company”) and its subsidiaries as of January 16, 2013, including the Company’s currently employed named executive officers (the “NEOs,” as named in the Company’s most recently filed Form 10-K). On January 16, 2013, the Compensation Committee of the Company’s Board of Directors (the “Board”) established the Retention Program to reward employees who continue in service to the Company through January 2, 2014. The Retention Program provides employees with a bonus equal to their threshold semi-annual bonus target as of January 16, 2013.
The Company’s Named Executive Officers will be eligible to receive a bonus equal to the amounts set forth in the following table:
Name and Title Retention Bonus Potential
Heath B. Clarke, Chief Executive Officer $177,847
Michael A. Sawtell, President and Chief Operating Officer $91,391
Kenneth S. Cragun, Chief Financial Officer and Secretary $65,528
Erick Herring, Sr. Vice President, Technology $58,427 (1)
Peter S. Hutto, Sr. Vice President Corporate Development $50,000 (1)
(1) Amounts to be paid via an equity grant under the Company’s 2011 Omnibus Incentive Plan, as amended.
Yes, I work for pot and Heath and I do stuff together on all the shareholders dime. It been quite the par-tay! We're all getting ready to buy when the time is right. You'll know, but not before us! We manipulate the krap out of this thing. Just posting more facts.
No, I work for a salary and a performance bonus. Heath doesn't earn too many of those.
Retention bonuses are the calling card of a penny stock with passive shareholders. The only time they are good for shareholders is during a time of extreme stress in a company and then only for top performers. Heath has a track record of destroying shareholder value, no one has any interest in hiring him, what's the point in a retention bonus other than to give away shareholder (pretty soon to be creditors) money by his cronies on the comp committee.
The fact that you see nothing wrong with it is why you are a horrible investor and deserve to lose all of your money.