I don't see this as shady. Suing and defending being sued is expensive enough to worry even medium sized companies. Exploring other options first seems like good business practice to me.
The part that seems sketchy to me isn't the agreement itself, but not disclosing what you're threatening to sue for. Plaintiffs usually come at you with a litany of grievances. You can hash them out in court or settle, but you know up front what you're fighting about.
