1. On August 15, 2017, the Defendant (Counterclaim Defendant) filed against the Plaintiff (Counterclaim Defendant) KRW 11,700,995 and KRW 11,296,525 among them.

1. Facts of recognition;

A. The Plaintiff is a general restaurant business and franchise recruitment business. The purpose of the Plaintiff is to engage in franchise recruitment business.

On August 5, 2014, the Plaintiff entered into a franchise agreement with Defendant B as to “E” with the term of the contract from August 5, 2014 to August 4, 2017 (hereinafter “instant franchise agreement”); Defendant B established a corporation F, Co., Ltd., Ltd. on October 15, 2014 for the operation of “E”, and operated the E store (Ssawbabbs and water safe restaurant).

The main contents of the instant franchise agreement concerning the instant case are as follows.

Article 4 (Granting Business Marks and System License) (1) Approval of Business Marks E established under this Agreement shall be as follows:

1. G trademark and signboards;

2. G service marks;

3. Streets and insignias of G;

4. Trade name of G;

5. Otherwise, Article 18 (Payment of Price) (1) Section B (Payment of Price), including all fixtures or goods, supplied by A to B for the operation of franchise stores, shall pay Party A 1.5% of monthly sales (excluding value-added tax) of the royalties designated as compensation for management support to Party B and for the use of business marks during the term of this paragraph.

(B) Article 29 (Duty of Confidentiality and Confidentiality) (1) of the Act shall not divulge or divulge the trade secrets of A to a third party as well as during the contract period, even after the contract is terminated.

(2) Eul shall not print, duplicate, lend, disclose, or do any other similar act any related document containing trade secrets of Gap without the prior approval of Gap in connection with the operation of the franchise store, including equipment manuals of Gap, operation manuals of franchise stores, information disclosure manuals, franchise agreements, education and training materials, and other similar materials.

(3) B shall be trade secrets of A in the name of himself/herself or a third party during the contract period without permission of A.