DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD. AND ...

Doosan Heavy Industries & Construction Co., Ltd. and SubsidiariesNotes to the Consolidated Financial StatementsFor the years ended December 31, 2012 and 201133. Commitments and Contingencies(1) As of December 31, 2012, promissory note and checks (including one blank promissory note, and twoblank checks) related to the Controlling Company's debt and guarantees are provided as collateral in therelevant banks.(2) As of December 31, 2012, the Group’s bank overdraft limit is ₩10,000 million won and the limit ofopening of letter of credits for imports is USD 1,684 million.(3) As of December 31, 2012, the Group has pending lawsuits as defendent for compensation of damagesamounting to approximately ₩ 218,266 million and the Group is unable to reliably estimate the expectedfinancial effect that will result from these cases.(4) As of December 31, 2012, the Group entered into approximately 15 contracts with MHI and other partiesregarding technology inventions, and these contracts have been effective in the time rage from March 28,1977 until September 2, 2033. In 2012, the royalty payment for the technologies is ₩ 24,607 million.(5) As of December 31, 2012, the Group provided the following guarantee:Providing partyDoosan Heavy Industries& Construction Co., Ltd.Receiving partyGS Engineering &Construction Corp.Guaranteedamount(millions ofwon)₩ 21,305Type ofguaranteeConstruction jointguaranteeRecipient of theguaranteeKorean electricpower corporationAs of December 31, 2012, the Group was provided guarantees in the amount of ₩ 77,491 billion withrespect to domestic and international constructions from financial institutions and was provided jointguarantees in the amount of ₩ 66 billion with respect to the execution of construction contracts fromconstruction companies.77