BUILDER shall provide and maintain warranty bonds respective to each VESSEL in the amount of ten percent (10%) of the value of each VESSEL in the CONTRACT PRICE stated in APPENDIX I, which will be effective from the date of signing of PROTOCOL OF DELIVERY AND ACCEPTANCE and valid throughout the WARRANTY PERIOD (the “Warranty Bond”) plus 60 days for any claim within the WARRANTY PERIOD, and shall expire in accordance therewith. The Warranty Bonds shall serve as security that the BUILDER shall well and truly perform and fulfil all the undertaking, covenants, terms and conditions contained in the warranty of quality in Article XII
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