1. Of the judgment of the first instance, with respect to the Defendant (Counterclaim Defendant), KRW 2,272,500 against the Plaintiff (Counterclaim Defendant) and its related thereto on February 25, 2016.

1. Facts of recognition;

A. On September 14, 2012, the Plaintiff entered into a contract with B to make and supply the pipe production facilities (hereinafter “instant control facilities”) for the Heer C&D (Heer) as “A factory of Thailand” at the place of delivery, by setting the price of KRW 405,00,000 (Additional Rule), January 20, 2013; and the place of delivery as “B factory of Thailand”.

B. Thereafter, on November 19, 2013, the Plaintiff, B, and the Defendant agreed as follows:

(hereinafter referred to as “instant supplementary agreement”). Supplementary agreements on the transfer of lighting equipment

1. Title: Transfer of control facilities of this case;

2. Transfer of ordering enterprise: The final buyer of the instant steering equipment produced by the Plaintiff in the order of the Company B shall be the defendant.

3. Existing contracts shall be maintained, but the matters specified in this Agreement shall have legal priority.

In other words, this article takes precedence over the following matters:

3-1) 30% of the down payment already paid, i.e., the down payment from the Defendant to B, i.e., the intermediate payment and the balance, excluding 30% of the down payment already paid, out of the total down payment, shall be paid from the Defendant to the Plaintiff.

Provided, That part payments (the change from 60 per cent to 5 per cent), balance (10 per cent to 15 per cent) shall be changed.

3-3) The rights of “A” in the existing contract are the Defendant. 3-4) The period of free A/S of equipment under Article 9(A/S)(1) of the existing contract shall be one year.

Provided, That one year after the establishment of a facility transfer center is approved.

C. On November 19, 2013, the Plaintiff entered into a contract with the Defendant to supply the instant steering pipe equipment to KRW 283,500,000 (Additional tax separate) until December 15, 2013, on which the Plaintiff entered into a contract with the Plaintiff to pay the remainder (85%) within seven days after the date of signing the contract, and within ten days after the completion of the trial (15%).

hereinafter referred to as the "instant contract"

D. On November 19, 2013, the Defendant paid KRW 121,50,000 to the Plaintiff on November 22, 2013, according to the instant supplementary agreement and the instant contract, and KRW 222,750,000 to the Plaintiff on November 22, 2013, and the Company B paid KRW 121,50,000 to the Plaintiff.

E. The Plaintiff’s objection around December 10, 2013.