(a) A state may not, directly or indirectly, nationalize or expropriate foreign private property except for a purpose which is in the public interest, not discriminatory, and against fair compensation.
(b) Direct expropriation occurs when foreign private property is nationalized or otherwise directly expropriated through formal transfer of title or outright seizure. Indirect expropriation occurs where a measure or series of measures has an effect equivalent to direct expropriation, in that it substantially deprives the owner of the fundamental attributes of his property, including the right to use, enjoy and dispose of his property, without formal transfer of title or outright seizure.
(c) Fair compensation must be based on the fair market value of the expropriated assets to be determined immediately before the time at which the taking occurred or the decision to take the asset became publicly known.
(d) Absent an agreement of the parties, if a going concern is expropriated, the amount of compensation is to be determined according to the "going concern"-value, based on the discounted cash flow value of the enterprise ("discounted cash flow method", "DCF").
(e) Absent an agreement of the parties, if a non-profitable enterprise is expropriated, the amount of compensation is to be determined according to the value of the original investment with appropriate adjustments.
(f) Payment of compensation shall include interest and has to be made effectively, i.e. in freely convertible currency on the basis of the market rate of exchange existing for that currency on the valuation date or in any other currency accepted by the investor, and prompt, i.e. without undue delay.