1. The Defendant (Counterclaim Plaintiff) paid KRW 86,940,00 to the Plaintiff (Counterclaim Defendant) for KRW 86,940,00 and its amount from June 27, 2018 to February 14, 2019.

1. Basic facts

A. On October 28, 2016, the Plaintiff entered into a contract with the Defendant to purchase automatic earthquake mixing system facilities (hereinafter “instant facilities”) at KRW 161,00,000 (excluding value-added tax) (hereinafter “instant contract”). The main contents are as follows.

Article 3 Payment and Place of Delivery

(a) Payment period: January 10, 2017;

Delivery Place: Article 4 (Separate Provision of Value-Added Tax) of the place of designation of the Plaintiff

(a) After concluding a down payment (40%) contract: 64,400,000 won (within seven days after concluding a contract);

(b) After the intermediate payment (30%) entry: 48,300,000 won (within seven days after the completion of the said payment);

(c) Any balance (30%) after a trial run: The scope of supply under Article 6 (within seven days after the trial run is completed);

(a) the special accessories mutually agreed to be purchased shall be subject to the criteria for attachment estimates and specifications for the production of facilities;

Article 11 The defendant shall pay to the plaintiff delay compensation equivalent to 1/100 of the contract amount per day if he/she fails to comply with the payment period specified in Article 3 of this Agreement.

The aggregate of the delayed compensation shall not exceed 10% of the contract amount.

B. On November 9, 2016, the Plaintiff paid down payment of KRW 70,840,000 (including value-added tax) to the Defendant, and on November 21, 2016, the Defendant issued to the Plaintiff a letter, etc. on the instant facilities (hereinafter “instant letter”).

C. The Defendant failed to manufacture and supply the instant facilities by January 10, 2017, which is the date of payment stipulated in the instant contract. From February 2017, the Defendant commenced to directly bring back parts necessary for assembling the instant facilities to the Plaintiff factory and to assemble the instant facilities at the Plaintiff factory.

The plaintiff continuously requested the defendant to manufacture and supply the instant facilities as soon as possible, and the defendant completed assembly on March 2017 and operated the instant facilities as a pilot, but there were many problems. Accordingly, the plaintiff and the defendant shall hold a meeting on March 20, 2017.