1. The Defendant (Counterclaim Plaintiff) paid KRW 87,600,000 to the Plaintiff (Counterclaim Defendant) and its related amount from September 17, 2013 to March 27, 2015.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

Basic Facts

On January 19, 2012, the Plaintiff and the Defendant enter into a goods supply contract (hereinafter “instant contract”) stating that “The Defendant manufactures and supplies 1,050,000 won (i.e., 210,000 won x 5,000 won x 5,000 value-added tax) in return for the manufacture and supply of the instant goods” (hereinafter “instant contract”). The main contents are as follows.

Article 3 Terms and Conditions of Trade: The unit price for production from January 19, 2012 to September 15, 2012: the quantity of KRW 210,000 per unit (excluding value-added tax): 5,000 total contract amount: 1,050,000 won (excluding value-added tax): The first supply shall be supplied by 10 until March 15, 2012, and thereafter shall be supplied at the time designated by the Plaintiff.

Provided, That it shall be based on 1,000 persons per month, and shall be determined with mutual consultation at the time of modification.

Article 5 (1) The defendant shall deliver the goods to a place designated by the plaintiff at the time designated by agreement between the contracting parties.

-Article VII: warranty liability (1) The defendant shall ensure the quality required by the plaintiff for the goods under this Agreement, and shall compensate for the goods without delay or in the event of any damage or defect in the course of carriage, under the responsibility of the defendant, if the plaintiff fails to guarantee the quality required by him.

Article 11. <2> When any of the following grounds arises, the plaintiff or defendant shall give written notice to the other party to perform the contract within a reasonable fixed period, and when the other party fails to perform this contract within such period, he/she may terminate this contract, and shall compensate the whole amount of the loss:

1. Where the plaintiff or the defendant violates the important provisions of this Agreement, the defendant shall carry out the production, final assembly, and packing of wooden components among the instant goods at around March 2012, A (hereinafter "A"), and A shall carry out the production, final assembly, and packing at the place designated by the defendant, and the defendant shall carry out the supply in total at 3,420,000 = 1.