Common use of Profit Participation Clause in Contracts

Profit Participation. Terms to be negotiated in good faith. If the parties fail to reach agreement ____ months after execution hereof, either party, upon 30 days notice to the other, may submit the matter to what is known as a “baseball arbitration,” in which each party presents one profit proposal and the arbitrator is required to adopt one of the two proposals. The arbitrator shall be selected and the arbitration conducted pursuant to the Voluntary Labor Arbitration Rules of the AAA.