If a Contracting Party or its designated agency (hereinafter referred to as the “Indemnifying Party”) makes a payment under an indemnity or guarantee given in respect of an Investment of an Investor (hereinafter referred to as the “Party Indemnified”) in the Area of another Contracting Party (hereinafter referred to as the “Host Party”), the Host Party shall recognise:

• (a) the assignment to the Indemnifying Party of all the rights and claims in respect of such Investment; and

• (b) the right of the Indemnifying Party to exercise all such rights and enforce such claims by virtue of subrogation.