1. The Plaintiff (Counterclaim Defendant) paid KRW 4,464,774 to the Defendant (Counterclaim Plaintiff) and its related amount from January 28, 2015 to September 30, 2015.

1. Basic facts

A. On August 13, 2014, the Plaintiff entered into an outsourcing processing contract with the Defendant for electronic components, and its main contents are as follows.

(hereinafter referred to as “instant processing contract”). Article 2 of the Processing Agreement

1. Outgoing processing means that the Defendant (the Plaintiff) manufactures by proxy the products of Party A (the Plaintiff) in the production of the products and pays the cost thereof.

Article 8 Methods and Time of Inspection

1. Methods of inspection;

(a)An inspection of processed products shall be conducted in accordance with the provisions of A, and Eul shall attach self-inspection results conducted in accordance with the inspection criteria set out by A at the time of delivery;

(c) A may use part of processed goods with the consent of B even before the inspection, and in such cases, A shall be liable for the used goods.

2. The time of the inspection shall be examined for the goods supplied by B, and the goods which failed to pass the inspection shall not be stored and treated as the result of the inspection.

Where defects found found that the guaranteed processed goods are found to be attributable to B within one year after they are supplied to A after the delivery under Article 13, they shall, without delay, repair the objects or compensate for them at the responsibility and charge of B.

Article 14 (Compensation for Quality Loss Expenses) If the quality problem of the processed goods paid to A by B for the quality damage caused by the defect in the Party A’s process and market by the defect in the quality exceeds the daily level and causes serious problem in quality and product liability, Party B shall compensate for the damage to Party A.

Article 23 Damage of a third party

1.B If a third party has suffered loss of life, body, property, etc. or a dispute with a third party arises in connection with orders manufactured, processed, or repaired goods, Eul shall process and resolve all of them under its own responsibility and bearing expenses.

2. If there is an external CLAIM due to reasons attributable to B for them, all of the costs and responsibilities for the resolution of these CLAIM must be borne by them.

B. The Plaintiff is the Defendant on September 29, 2014 under the instant processing contract.