Common use of Barring Clause in Contracts

Barring. Director and Agent recognize that Agent in the pursuance of Agent’s duties may be barred from doing business with certain employers. Such barring shall not be grounds for termination hereof by the Director. If the Agent is barred, then upon request of the Director, the Agent will submit to Director the name of a subscribing agent comparable in standing to the Agent who will act as substitute agent with the employer who has barred the Agent during the period the Agent is barred. The Director may object to the proposed substitute agent in which event the Agent will submit the name of a second proposed substitute agent comparable in standing to the Agent to whom the Director may also object. If the Director objects to the second substitute agent the Agent agrees to submit the name of a proposed third substitute agent. If the Director objects to the proposed third agent then Agent may: A. Submit other proposed substitute agents until a substitute agent acceptable to Director is obtained or; B. Submit the dispute regarding any rejected proposed substitute agent to arbitration in accordance with the provisions in Paragraph 7 hereof. If any arbitration decision rejects a proposed substitute agent then either of the procedures referred to in A. and B. shall be repeated until an acceptable substitute agent is obtained. The Agent agrees to act in good faith in naming proposed substitute agents and the Director agrees to act in good faith in making any objections.