Litigation costs shall be borne by the plaintiff.

A. On December 29, 201, the Defendant entered into a contract with the Defense Acquisition Program Administration of the Republic of Korea to purchase goods to deliver “C”.

The total price of goods is KRW 23,535,492,192, and the delivery deadline was set on October 30, 2013.

B. On November 9, 2012, the Plaintiff entered into a trade basic contract with the Defendant with the content that the Plaintiff would produce and supply 54 units of the aircraft city electric power plant (KTG184) and 54 units of “Vlot Regug” necessary for the implementation of the purchase contract for the said goods (hereinafter “instant contract”).

The main contents of the instant contract are as follows.

Article 3 (Period for Payment) The period for payment of contract goods, etc. under Article 2 shall be as follows:

(1) March 30, 2013: 10 units (2) : 10 units (3) : 10 units (4): 10 units (4) : June 30, 2013: 12 units (5) : July 30, 2013: 12 units (contract amount and payment terms) and Article 4 (Contract Amount and Payment Terms) 12 units (excluding value added taxes) : < Amended by Act No. 780,000,000>

Article 8 (Arrears Prize Money) (1) Where the plaintiff fails to deliver it to the defendant within the payment period under Article 3, he/she shall pay the defendant delayed prize money according to the ratio of 1.5/1,000 of the contract amount per day delayed to the defendant.

Article 16 (Monopoly Right) (1) The plaintiff may not supply goods under this contract to a third party without the prior consent of the defendant in addition to the defendant's order.

2. The Plaintiff and the Defendant shall restrict the supply and use of the goods under the agreement of the Parties in connection with this contract.

(c)

The Plaintiff produced and supplied all 54 goods under the instant contract to the Defendant, but failed to comply with the delivery date under the instant contract with respect to the said 25 parts.

Accordingly, the defendant also failed to observe the 25 delivery date to the Defense Acquisition Program Office.

(d)

The Defense Acquisition Program Administration notified the Defendant that the monetary reward of KRW 532,817,383 shall be imposed on the Defendant in accordance with the established rules of the planning and finance department contract and the general terms and conditions of the contract, etc., and the Defendant is subject to the contract price of KRW 23,535,492. < Amended by Presidential Decree No. 24290, Nov. 6, 2012>