1. As to the Plaintiff (Counterclaim Defendant)’s KRW 166,282,00,00 against the Defendant (Counterclaim Plaintiff), the Plaintiff (Counterclaim Defendant) from May 3, 2016 to October 27, 2016.

1. Basic facts

A. The Plaintiff is a corporation with the main business of designing and manufacturing industry machinery, metal processing machinery, etc., and the Defendant is a corporation with the main business of manufacturing and distributing aluminium, heating materials, building materials, etc.

B. On March 14, 2012, the Plaintiff and the Defendant entered into a contract for the installation of machinery and electric equipment related to COAER and ZCO (hereinafter “the instant machinery installation works”) and PAPARES manufacture (hereinafter “the instant roller manufacture”).

The main contents of the instant contract are as follows.

1) By July 15, 2012, the Plaintiff completed the construction and trial operation of the instant machinery in the Defendant’s factory. The Defendant paid KRW 550,000,000 to the Plaintiff (including surtax) on the condition that 40% of the down payment shall be paid after submitting a performance guarantee, 40% of the intermediate payment shall be paid at the time of delivery, and 20% of the remainder after the completion of trial operation.

B) In manufacturing and installing the instant machinery, the Plaintiff shall comply with the standards for mechanical drawings and equipment specifications in accordance with the manufacturing and installation of the instant machinery, and the quality assurance liability shall be 12 months after the completion of the trial run.

However, the portion inconsistent with the specifications of the equipment shall be replaced and repaired without compensation after the expiration of the warranty period. D) The amount equivalent to 3/1000 of the contract price per day when the air exceeds the warranty period shall be deducted from the balance of the construction price, but the contract price shall not exceed 10%. 2) The Plaintiff manufactures the instant roller and supplies it to the Defendant’s factory by July 15, 2012. The Defendant shall pay 23,100,000 won (including surtax) to the Plaintiff, but the down payment shall be 40% after the submission of the performance guarantee certificate, and the remainder 60% of the contract price shall be paid when the Plaintiff produces the instant roller.