A. On May 8, 2012, when concluding a subcontract agreement for construction works, the joint venture company, Gun master construction (this year, was merged with the Plaintiff’s Intervenor’s Intervenor’s consolidated construction, Gun master construction, Gun master construction; hereinafter “ Intervenor”) entered into a subcontract for construction works (hereinafter “instant subcontract agreement”) with Defendant A Co., Ltd. (hereinafter “Defendant A”) to subcontract the construction works of reinforced concrete among D new construction works of racing and New Confectaco clubs (hereinafter “instant subcontract”). From May 8, 2012 to December 31, 2012, the construction period of which was between May 8, 2012 and December 31, 2012; the construction cost of which was KRW 819,50,000 (including value-added tax); the contract deposit of which was paid once a month; and the contract deposit of which was paid at KRW 122,925,000.

The details related to the guarantee of performance of contract in the above contract shall be as follows:

The Intervenor A, and B are the Defendant A.

Article 7 (1) of the General Conditions of Contracts shall guarantee the execution of contracts by any of the following methods:

(2) The guarantee under paragraph (1) shall be made by means of a payment in cash or by a delivery of the letter of guarantee under any of the following subparagraphs:

1. A person who cancels or terminates all or part of the contract under the provisions of Article 25 (1) due to his/her failure to perform the contractual obligations by a guarantee agency equivalent thereto, such as a construction mutual aid association, specialized construction mutual aid association, guarantee insurance company, and credit guarantee fund.

Provided, That where Eul has paid in cash or issued a certificate under paragraph (2) 2 and 3, the amount equivalent to the amount of loss shall be reverted to Gap.

Article 25 (1) A or B shall, in cases falling under any of the following subparagraphs, notify in writing a period fixed for the implementation of a vow and then the contract is not implemented within such period, all or part of the relevant contract: