Common use of Broker Shareholder Sub-Classes Clause in Contracts

Broker Shareholder Sub-Classes. Annually, as provided herein, the Broker Shareholders shall be divided into Sub-Classes, which shall consist of Large Broker Shareholders, Mid-Sized Broker Shareholders, and Small Broker Shareholders. For the purpose of classifying Broker Shareholders within the three (3) subclasses, the Company shall within thirty (30) days of the Company’s fiscal year-end calculate the total number of completed transactions entered into the Database during the previous twelve (12) months. The Broker Shareholders shall then be ranked based upon the number of completed transactions entered by each Broker Shareholder into the Database from highest to lowest, which ranking will be applicable for the remainder of the then-applicable calendar year. In its first year of operation, Southern MLS, LLC will calculate the calculation for broker sub-class based on the past 12 months of listing activity. The Broker Shareholders with the highest number of closed transactions whose aggregate number of transactions equal one third (1/3rd) of all the listings entered into the Database shall be classified as Large Broker Shareholders. The Broker Shareholders entering the second highest number of closed transactions into the Database whose aggregate number of transactions when combined with the aggregate number of listings entered by the Large Broker Shareholders equal two thirds (2/3rds) of all listings entered into the Database shall be classified as Mid-Sized Broker Shareholders. The remaining Broker Shareholders shall be classified as Small Broker Shareholders. The Board of Managers may prescribe such other measures as they may deem necessary to properly determine the Shareholders of each sub-class. Interpretation and application of this paragraph shall be in the reasonable discretion of the Board of Managers.