This lecture covers the thermodynamics of simple subsystems, focusing on the first and second principles. It begins with the definition of simple subsystems and their interactions, including heat and matter transfer. The instructor explains the energy currents between these subsystems and introduces the concept of entropy, detailing its time derivative and differential forms. The lecture emphasizes the conditions for chemical equilibrium, where the chemical potentials of the subsystems must equalize. The second principle is discussed in the context of irreversible processes, highlighting the role of entropy as a measure of irreversibility. The instructor uses analogies, such as gravitational potential, to clarify the concept of chemical potential. The lecture concludes with the application of Fick's law to describe irreversible matter transfer, supported by experimental demonstrations involving hydrogen diffusion. Overall, the lecture provides a comprehensive understanding of thermodynamic principles as they apply to simple systems and their interactions.