The Plaintiff (Counterclaim Defendant) paid KRW 39,600,000 to the Defendant (Counterclaim Plaintiff) and the Plaintiff’s counterclaim from April 10, 2019 to May 18, 2020.

A principal lawsuit and a counterclaim shall be deemed simultaneously.

1. Basic facts

A. The Plaintiff is a company that runs the business of manufacturing and selling cosmetics, and the Defendant is a company that runs the business of manufacturing and selling cosmetics.

B. On January 11, 2019, the Plaintiff entered into a contract for consignment production and supply (hereinafter “instant contract”) with the Defendant to supply “C” (hereinafter “instant product”) produced by the Defendant on commission of the Plaintiff to KRW 8,250 per unit (including value-added tax, one unit of nives, composed of two unit of nives), and set the minimum purchase volume into 8,000, and Article 2 (Supply Price and Minimum Purchase Quantity).

2. The minimum purchase volume shall be separately determined by the Plaintiff and the Defendant through consultation.

Article 3 (Property Rights, etc.)

1. The Defendant’s intellectual property right to the products provided to the Plaintiff is the Defendant, and the Plaintiff cannot freely modify and distribute the products, but, if necessary, make a decision in consultation with the Defendant.

4. In the event that there was an obstacle to the sale of the products that the Plaintiff ordered by the Plaintiff due to intellectual property issues, such as patent of this product supplied by the Defendant, the Defendant shall compensate the amount of the supply for the product and the Plaintiff’s total damages arising therefrom.

Article 5 (Payment of Price)

1.The payment in lieu of the goods shall, in principle, be in cash and 40% of the total settlement amount at the time of the order shall be paid and 60% of the balance shall be paid within seven days from the date of the completion of the payment

Article 8 (Cancellation and Termination of Contract) The plaintiff and the defendant lose their benefit of time between the parties when a cause falling under any of the following subparagraphs occurs, and the plaintiff and the defendant may cancel or terminate this contract without due process, such as prior peremptory notice:

1. Where either party seriously violates each of the provisions of this contract;

6.(Indemnification) If, for any other reason, the existence of an objectively and objectively becomes final and conclusive, a party to this Agreement.