1. All appeals filed by the Defendant (Counterclaim Plaintiff) on the principal lawsuit and counterclaim are dismissed.

2. The costs of appeal shall be principal lawsuit and counterclaim.

Basic Facts

A principal lawsuit and a counterclaim shall be deemed simultaneously.

Both the Plaintiff and the Defendant are corporations that engage in the business of manufacturing and selling bedclothess.

On January 15, 2013, the Defendant entered into a trademark right contract (hereinafter “instant trademark right contract”) with respect to the trademark A (B) owned by the Plaintiff, which includes the following contract terms and conditions (hereinafter “instant trademark right contract”), and around that time, paid the down payment (advance payment) KRW 20 million under the said trademark right contract to the Plaintiff (hereinafter “instant advance payment”).

Article 1

3. Period: From March 1, 2013 to February 28, 2016;

6. Down payment: The Defendant shall pay the Plaintiff a down payment in the form of advance payment in the form of advance payment, and on February 28, 2016, the term of the contract expires, the Plaintiff shall refund the advance payment of KRW 20 million to the Defendant on January 30, 2013 and February 28, 2018, which is the date of termination of the contract period.

Article 4(2) The heating for the use of trademark rights shall be 7% of the sales amount of the goods related to bedclothes and 5% of the sales amount of the relevant products.

6. The Defendant shall pay the Plaintiff the minimum royalty amounting to KRW 50 million at the City Pison Pison (six-month unit) where the operation of the designated goods of this case is suspended without prior notice within the contract period.

Article 4 (Terms and Conditions of Contract) (1) For the production of a Chinese factory, the Plaintiff shall transfer 30,000 USD 224,850 of the total amount ordered to the Chinese factory to the first down payment until October 17, 2016.

USD 50,000 USD 20,000 of down payment 50, the Defendant, on behalf of the Plaintiff, satisfies the terms of 50,000 USD 50,000.

Provided, That the USD 20,000 paid by the defendant on behalf of the plaintiff shall be paid in cash to the defendant by November 30, 2016.

(2) In principle, USD 100,000, out of the remaining ordering amounts, excluding down payment, shall be opened by a credit (L/C), and the time of opening a credit shall not exceed October 31, 2016, after transferring down payment.

Article 5 (Quality Standards and Inspections) (1) The defendant shall be the plaintiff.