2. All costs of the lawsuit shall be borne by the Plaintiff.

The purport of the claim and appeal is the purport of the appeal.

A. The Plaintiff Association is a cooperative with the purpose of investing in agricultural and food enterprises (hereinafter “agricultural and food investment association”) pursuant to Article 11 of the Act on Formation and Operation of Agricultural, Fisheries, and Food Investment Funds (hereinafter “Food Investment Associations”). On July 19, 2013, the Plaintiff Association completed the registration pursuant to Article 13(1) of the same Act, consisting of the members of the Fund of Funds for Agriculture and Food Investments (7 billion won paid-in), the high-lodoning Institute (1.6 billion won paid-in), a foundation for limited liability (1.6 billion won paid-in), and the term of existence from July 19, 2013 to July 19, 2013. < Amended by Act No. 11948, Jul. 19, 2013>

B. On July 17, 2015, the Plaintiff Union entered into a project investment contract with the Defendant Limited Company A (hereinafter “Defendant Company”) with respect to the category of E products, including “C” and “D, for which the Defendant Company would develop and sell, the Plaintiff Union paid KRW 1 billion for a period of three years of investment, and supervised the execution thereof, by settling the distributable profits during the project period as an annual unit, and agreed that the Defendant B, the representative director of the Defendant Company, shall participate in the said contract as interested parties, and shall jointly and severally fulfill all the obligations owed by the Defendant Company to the Plaintiff Union.

C. Accordingly, the Plaintiff Company deposited one billion won of investment in the Defendant Company into the Defendant Company’s account (FF) on the same day, and the Defendant Company produced “D” products through OEM production planning on January 20, 2016.

Plaintiff

On March 14, 2016, the association had the Defendants arbitrarily changed the sales strategy, executed the investment fund without approval, and reported major changes.