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Confusing contract clause Ruth Tallman 02 May 2001 16:04 EST

Dear Colleagues,

I need your help with the following clause in a subcontract from a
for-profit (Them) to Lehigh (Us).  The clause is in the Insurance and
Indemnification section.  What the heck does it mean?

"To the extent permitted by law, Contractor [Us] and its insureres(s)
agree that subrogation rights against Buyer [Them] are hereby waived.
Contractor hereby undertakes to reflect such waiver in any policy(ies)
required under this Agreement."

Your clairvoyance will be greatly appreciated!


Ruth Tallman
Office of Research and Sponsored Programs
Lehigh University
526 Brodhead Avenue
Bethlehem, PA  18015
Phone:   (610)758-3024
FAX:    (610)758-5994

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