Value of business and adjustment of purchase price to value

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Value of business and adjustment of purchase price to value. Subsequent to the date of execution of this agreement and prior to the date of closing, purchaser shall have the right to examine the files and records of seller in order to ascertain the value of the agency business being sold pursuant to this agreement. Seller represents that gross annual premiums total $_____ and that gross average commission is _____% of the gross annual premiums, or $_____ per month. The selling price of the agency business being sold pursuant to this agreement has been established as _________ times the average monthly commission of $_____ totaling $_____. If, upon examination of the files and records of seller, purchaser shall ascertain to the satisfaction of seller that seller's files and records do not properly reflect the value of the insurance agency business being sold pursuant to this agreement, as represented above, then, and in that event, the purchase price for the agency business being sold pursuant to this agreement shall be reduced by a sum proportionate to the percentage by which the value of the gross annual premiums, as represented in this agreement, exceed the gross annual premiums, as ascertained by purchaser upon examination of the files and records of seller, and as agreed to by seller.

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