1. On November 1, 2016, the Defendant (Counterclaim Defendant) filed against the Plaintiff (Counterclaim Defendant) for KRW 397,761,468 and KRW 389,93,110 among them.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

1. Basic facts

A. On December 31, 2015, the Plaintiff entered into a contract with the Defendant for the business and tobacco products comprehensive advertising agency (hereinafter “instant contract”) with the Defendant from January 1, 2016 to December 31, 2016, under which the Plaintiff entered into a contract for the business and tobacco products comprehensive advertising agency (hereinafter “instant business”).

Article 3 (Term of Contract) The term of the instant contract shall be from January 1, 2016 to December 31, 2016, and shall not be renewed unless there is an express agreement between both parties.

Article 4 (Details and Revision of Services) The Plaintiff shall perform the services within the scope of the following services under the instant contract, and the details shall be as specified in attached Form 1:

1. Consultation on brand strategy;

2. Advertising (water) and the development/production of POSM;

3. Development and execution of brand contents (including media agency);

4. Other support affairs (dedicated to the performance of services) ① The Plaintiff shall organize an exclusive team comprised of human resources for the performance of services in order to ensure consistency and efficiency in the affairs of comprehensive advertising agency, and the exclusive team shall continuously conduct the Defendant’s activities of integrated brand communications during the term of the contract, such as ascertaining the current status of the activities of integrated brand communications, drawing up improvement points, formulating strategies, and conducting activities to back

(2) The Plaintiff may not alter the composition of the exclusive team, the prior consultation of which has been held without any reasonable ground.

However, this provision shall not apply where the defendant consents in advance.

(3) When the plaintiff forms the exclusive team under paragraph (1) and replaces the manpower in exclusive charge under paragraph (2), he/she shall notify in writing not less than 30 days prior to the verification data of his/her ability to perform services (referring to the ability to perform services equal to or higher than the existing human resources when replacing the human resources).