Consider a SN2 reaction. All the bonds forming and breaking can be seen in the localized M.O.s. Consider the reactive sites in a molecule (double bonds, lone pairs, etc.). These have exact equivalents in the localized M.O.s. The energies of localized M.O.s are indicative of the reactivity of the associated electron pair. Consider an excited, insulating polymer, such as excited polyethylene. The excited state is usually written with an asterisk (*), and is generated simply by localizing the M.O.s of an excited polymer cluster.