2. The costs of lawsuit are assessed against the plaintiffs.

A. The Plaintiff Company A (hereinafter “Plaintiff A”) is a company that produces, distributes, and sells female clothing products, and operates 7-8 stores directly. The Plaintiff Company B (hereinafter “Plaintiff B”) is a company that supplies female clothing products from Plaintiff A and sells 3-4 stores directly.

B. From March 17, 2010, the Defendant served as the head of the management department in the Plaintiff A from around March 17, 2010, and has been engaged in overall sales stores management, such as managing the clothing goods and sales members of each sales store operated by the Plaintiffs and settling accounts of the sales price of the clothing and

C. On December 16, 2015, the Defendant was subject to the Seoul Eastern District Prosecutor’s Office’s Office’s disposition that was not guilty of the facts constituting the crime as set forth in paragraph (1) below. On the same day, the Defendant was indicted for the facts constituting the crime as set forth in paragraph (2) below, and was convicted by the Seoul Eastern District Court on April 28, 2016, and the judgment became final and conclusive around that time.

1) On July 3, 2010, the Defendant: (a) was a person who was engaged in the management of clothing sales proceeds as the head of Plaintiff A; (b) sold clothing sales proceeds from Plaintiff A’s substitute store located in Gangnam-gu Seoul on July 3, 2010; (c) received KRW 59,000 from the customer; and (d) reported the sales proceeds to Plaintiff A by reducing the total sales proceeds without stating the sales proceeds on the daily sales slip; and (c) embezzled the said clothing sales proceeds at will by the Defendant from around February 19, 2014 to February 26, 2014; and (d) embezzled KRW 10,124,000 on a total amount of 26 occasions as described in the separate crime list from around February 19, 2014; (b) the Defendant was a person engaged in the management of the overall sales store at Plaintiff A’s substitute store in Gangnam-gu, Seoul on March 10, 2013.