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

A. K Co., Ltd. as a party to the dispute (hereinafter “K”) is a company with the purpose of developing and selling smart cards and terminal devices, and the Plaintiff is a company with the purpose of software development and supply business, and Defendant E was a non-standing director of K and Defendant H was an outside director.

B. On July 6, 2007, K borrowed KRW 3 billion from Daeyoung Mutual Savings Bank (hereinafter “Large Mutual Savings Bank”) on the business report, etc., on the part of July 6, 2007, K offered the amount of KRW 2.1770,000,000 for the lease deposit refund claim amounting to KRW 1,000,000,000 for the lessor, and the amount of shares equivalent to KRW 1,000,000,000 for KRW 1,000,000,000 as security. However, on November 1, 2007 and the same month.

8. Although all of the above loans were repaid, the contract establishing a security was not terminated.

In addition, on November 2007, K has guaranteed payment of KRW 500 million to M's loan obligations.

B) K’s payment guarantee (total amount is KRW 3.686 billion) on the claim for refund of lease deposit, stock security and M’s debt on the financial statements of the business report of March 31, 2009 announced publicly on March 31, 2008

(2) On February 5, 2009, N, a management manager of K, purchased and stored a bearer deposit certificate with capital increase issued by a third party and with the price of convertible bonds. On April 20, 2009, K exchanged the certificate of deposit equivalent to KRW 2.42 billion with cash from N on the same day, and K received the above cash amount of KRW 2.42 billion from N on June 30, 2009 and repaid bonds to Convertible Bonds on June 30, 2009. On the other hand, the Securities and Futures Commission determined that Convertible Bonds amounting to KRW 2.42 billion with the above cash amount were actually provided to Convertible Bonds as collateral for Convertible Bonds in the process of accounting supervision with K, which was conducted on January 1, 2010.