Sample Comprehensive ADR Clause

If a dispute, claim, question, or disagreement arises from or relating to this agreement or a breach thereof, the parties hereto shall use their best efforts to settle the dispute, claim, question or disagreement. To this effect, they shall consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable resolution that is satisfactory to both parties. If the parties are unable to reach a resolution within 60 days, the parties agree to try in good faith to settle the dispute by mediation. If the mediation does not result in a settlement, the parties agree to settle the dispute by binding arbitration. The parties agree that any mediation and/or arbitration will take place in (desired location). This agreement shall be governed by and interpreted in accordance with the laws of (specify state). The parties agree to use the American Arbitration Administration (AAA) as the sole and exclusive administrator of any and all disputes that arise from this agreement including any mediation or arbitration that becomes necessary. The parties agree that each will bear its own expenses related to any dispute but will equally share the costs of any mediator and/or arbitrator. The parties agree that there will be just one arbitrator unless one of the parties wishes to pay the full cost of two additional arbitrators (so that there will be three). Any resolution agreed to by the parties by mediation and any decision or ruling made by an arbitrator or arbitrators will be final and binding and may be entered into a court of law for enforcement under the law.

Caution: Do not use this clause without first checking with your own attorney and into the applicable laws of your particular state.