2. The costs of litigation incurred by the principal lawsuit shall be borne by the Plaintiff (Counterclaim Defendant).

A. The Plaintiff is a school foundation that establishes and operates the Seowon University.

The articles of incorporation of the plaintiff provides that honorary retirement allowances may be paid to an employee who has served continuously for not less than 20 years, and the relevant provisions of the Private School Act and the articles of incorporation are as follows.

(1) An educational foundation or a private school manager shall have a secretariats necessary to deal with its affairs and the affairs of the school that he/she establishes and operates, and the fixed number, appointment, remuneration, service and guarantee of the status of an educational foundation or a private school manager that is a juristic person shall be determined by the articles of association in the case of an educational foundation or a private school manager that is a juristic person, and the regulations in the case of an individual

Article 87-2 (Honorable Retirement Allowances) (1) Where a general employee of a school established and operated by this corporation who has served for not less than 20 years (excluding those appointed with a fixed period of appointment) voluntarily retires before his retirement age, he may be paid an honorary retirement allowance (hereinafter referred to as “retirement allowance”) within the scope permitted by the budget.

(2) Where a person who has served for less than 20 years as a member of an organization of office and the fixed number of personnel, reduction of budget, etc. voluntarily retires before his/her retirement age, allowances may be paid within budgetary limits.

(3) The scope of persons eligible for honorary retirement allowances under paragraph (1) and allowances under paragraph (2) and the amount of and procedures for payment of allowances, and other necessary matters shall be prescribed by the rules following a resolution

B. On November 2010, the Plaintiff entered into a collective agreement with the Seowon University Trade Union and employees with at least 17 years of continuous service in order to pay honorary retirement allowances if they want voluntary retirement.

However, by reflecting this, the articles of incorporation of the plaintiff was not revised.

C. The defendant is about 17 years and 6 months of continuous service at Seowon University.