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   &lt;p style="margin-top:12px;margin-bottom:0px"&gt;&lt;font style="font-family:times new roman" size="2"&gt;&lt;b&gt;NOTE 1 &amp;#8212; DESCRIPTION OF BUSINESS &lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
   &lt;p style="margin-top:6px;margin-bottom:0px"&gt;&lt;font style="font-family:times new roman" size="2"&gt;&lt;b&gt;Business Operations &lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
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   The Allied Defense Group Inc. (&amp;#8220;Allied&amp;#8221; or the &amp;#8220;Company&amp;#8221;), a Delaware corporation, previously conducted a multinational defense business focused on the manufacture and sale of
   ammunition and ammunition related products for use by the U.S. and foreign governments. Allied&amp;#8217;s business was conducted by its two wholly-owned subsidiaries: MECAR sprl, formerly Mecar S.A. (&amp;#8220;Mecar&amp;#8221;), and ADG Sub USA, Inc., formerly
   Mecar USA, Inc. (&amp;#8220;Mecar USA&amp;#8221;). &lt;/font&gt;&lt;/p&gt;
   &lt;p style="margin-top:18px;margin-bottom:0px"&gt;&lt;font style="font-family:times new roman" size="2"&gt;&lt;b&gt;Plan of Dissolution and Liquidation &lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
   &lt;p style="margin-top:6px;margin-bottom:0px; text-indent:4%"&gt;&lt;font style="font-family:times new roman" size="2"&gt;On June&amp;#160;24, 2010, the Company signed a definitive purchase and sale agreement (the &amp;#8220;Agreement&amp;#8221;) with Chemring Group PLC
   (&amp;#8220;Chemring&amp;#8221;) pursuant to which Chemring agreed to acquire substantially all of the assets of the Company for $59,560 in cash and the assumption of certain liabilities. On September&amp;#160;1, 2010, the Company completed the asset sale to
   Chemring contemplated by the Agreement. Pursuant to the Agreement, Chemring acquired all of the capital stock of Mecar for approximately $45,810 in cash, and separately Chemring acquired substantially all of the assets of Mecar USA for $13,750 in
   cash and the assumption by Chemring of certain specified liabilities of Mecar USA. A portion of the purchase price was paid through the repayment of certain intercompany indebtedness owed to the Company that would otherwise have been cancelled at
   closing. $15,000 of the proceeds of the sale was deposited into escrow to secure the Company&amp;#8217;s indemnification obligations under the Agreement. &lt;/font&gt;&lt;/p&gt;
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   In conjunction with the Agreement, the Board of Directors of the Company unanimously approved the dissolution of the Company pursuant to a Plan of Complete Liquidation and Dissolution (&amp;#8220;Plan of
   Dissolution&amp;#8221;). The Company&amp;#8217;s stockholders approved the Plan of Dissolution on September&amp;#160;30, 2010. In response to concerns of certain of the Company&amp;#8217;s stockholders, the Company agreed to delay the filing of a certificate of
   dissolution with the Delaware Secretary of State. The Company filed a certificate of dissolution with the Delaware Secretary of State on August&amp;#160;31, 2011. In connection with this filing, our stock transfer agent has ceased recording transfers of
   our stock and our stock is no longer publicly traded. &lt;/font&gt;&lt;/p&gt;
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