1. The Defendant (Counterclaim Plaintiff) paid KRW 108,900,050 to the Plaintiff (Counterclaim Defendant) and its related amount from December 17, 2016 to December 29, 2017.

The principal lawsuit and counterclaim shall be judged together.

1. Basic facts

A. On July 20, 2016, the Plaintiff (subcontractor) engaged in the construction business under the trade name “B” entered into a subcontract for the construction work (hereinafter “instant subcontract”) with the Defendant (subcontract) for each of the following terms: (a) with respect to the construction cost of KRW 269,50,000 for the D hotel in Gwangju-gu (hereinafter “instant building”) change of the purpose of use of the D hotel in Gwangju-dong-gu (hereinafter “instant building”); (b) value-added tax of KRW 245,000,000, value-added tax of KRW 24,500,000; and (c) the construction period from July 20, 2016 to October 20, 2016:

(A) No. 1-3. [Certificate of Contract for Construction Works]

1. Project owner: Name of prime contract for the life-sustaining industry: D hotel change in C;

2. Name of subcontracted works: Mechanical installation works;

3. Place for construction: Dong-gu Gwangju Metropolitan City E.

4. Period: October 20, 2016 after completion of construction, July 20, 2016.

6. Payment of the price;

(a) No advance payment;

(b) Endd amount: Rate of liquidated damages for delay on July 1, 200 in cash: 1/1000 per cent on July 20, 2016, Article 18(1) of the General Conditions for the Construction Work Subcontract (Liability for Damages): Where the property of the Corporation or any damage to a third party is incurred due to a cause not attributable to both parties (Defendant) and (Plaintiffs) before the object of the Corporation is delivered to Gap (Defendant).

(b) The proviso of Article 25 (Cancellation and Termination of Contracts): In cases falling under any of the following subparagraphs, A (Defendant) or B (Plaintiff) may cancel or terminate all or part of the relevant contract, if the contract is not performed within the said period after peremptory notice is given in writing, setting a period:

1. Where it is deemed that Party A or B cannot achieve the purpose of the contract in violation of the terms and conditions of the contract;

3. Where it is impossible for the Defendant to complete the construction work due to its violation without any justifiable reasons, without performing the contents of the contract;

4. Eul (Plaintiff).