Document:

EX-10.3

February 2, 2006

The Allied Defense Group, Inc.

8000 Towers Crescent Drive, Suite 260

Vienna, Virginia 22182

Attn: Robert Dowski, Chief Financial Officer

	 	 	 	Re: Loan and Security Agreement dated as of May 28, 2004 (as amended from time to time,
the “Loan” agreement) by and among The Allied Defense Group, Inc., a Delaware corporation
(“Company”), News/Sports Microwave Rental, Inc., a California corporation, Titan Dynamics
Systems, Inc., a Texas corporation, SeaSpace Corporation, a California corporation, MECAR
USA, Inc., a Delaware corporation, Allied Research Corporation Limited, a company formed
under the laws of England and Wales, Energa Corporation, a Maryland corporation, ARC
Europe, S.A., a Belgium company, and Global Microwave Systems, Inc., a California
corporation, as borrowers (individually, a “Borrower” and collectively, “Borrowers”), and
Patriot Capital Funding LLC I, a Delaware limited liability company, successor in interest
to Wilton Funding, LLC, a Delaware limited liability company, as lender (“Lender”)

Ladies and Gentlemen:

As you are aware, Borrowers are currently in default and a Matured Default exists under the Loan
Agreement and the other Financing Agreements due to (i) the failure of Company to satisfy the
Collateral Requirement set forth in Section 1.9 of the Deposit Account Security Agreement, and (ii)
the failure of Borrowers to keep and observe other covenants, conditions, promises or agreements
contained in the Financing Agreements. All capitalized terms not otherwise defined herein shall
have the meanings ascribed to such terms in the Loan Agreement.

Commencing on the date hereof, any and all amounts due under the Note or under any other Financing
Agreement, whether for principal, interest, fees, expenses or otherwise, shall bear interest at a
rate per annum equal to the Default Rate, which accrued interest shall be payable for the
immediately preceding one month period by the issuance of additional promissory notes in a form
approved by lender in the aggregate principal amount equal to the amount of interest calculated at
the Default Rate.

By execution and delivery of this letter, Lender is not waiving the Matured Defaults. Lender
reserves the right to enforce all provisions contained in the Financing Agreements. Furthermore,
Lender’s actions in executing and delivering this letter shall not be construed as a waiver or
relinquishment, or estoppel to assert, any of Lender’s rights under the Financing Agreements or
applicable law and are without prejudice to Lender’s right to pursue any and all remedies available
to it. Nothing contained in this letter shall be deemed to be or construed to be a release or
waiver by Lender of Borrowers, and nothing contained herein shall in any manner or form impair the
validity of any lien or security interest granted pursuant to the Financing Agreements. This
letter does not constitute a discharge or novation of any Financing Agreement, and such documents
shall continue in full force and effect and shall be fully binding upon all parties thereto.

Very Truly Yours,

PATRIOT CAPITAL FUNDING LLC I,

A Delaware limited liability company

By:      

Name:      

Title:EX-10.4

February 3, 2006

The Allied Defense Group, Inc.

8000 Towers Crescent Drive, Suite 260

Vienna, Virginia 22182

Attn: Robert Dowski, Chief Financial Officer

	 	 	 	Re: Loan and Security Agreement dated as of May 28, 2004 (as amended from time to time,
the “Loan” agreement) by and among The Allied Defense Group, Inc., a Delaware corporation
(“Company”), News/Sports Microwave Rental, Inc., a California corporation, Titan Dynamics
Systems, Inc., a Texas corporation, SeaSpace Corporation, a California corporation, MECAR
USA, Inc., a Delaware corporation, Allied Research Corporation Limited, a company formed
under the laws of England and Wales, Energa Corporation, a Maryland corporation, ARC
Europe, S.A., a Belgium company, and Global Microwave Systems, Inc., a California
corporation, as borrowers (individually, a “Borrower” and collectively, “Borrowers”), and
Patriot Capital Funding LLC I, a Delaware limited liability company, successor in interest
to Wilton Funding, LLC, a Delaware limited liability company, as lender (“Lender”)

Ladies and Gentlemen:

This letter is to confirm to you that the Lender agrees, as set forth and conditioned herein, to
forbear from declaring a Matured Default under the Financing Agreements or exercising its remedies
as a consequence thereof, solely as a consequence of the existence or continuance of (i) the
failure of Company to satisfy the Collateral Requirement set forth in Section 1.9 of the Deposit
Account Security Agreement, and (ii) the failure of any Borrower to keep or observe any other of
the covenants, conditions, promises or agreements contained in any Financing Agreement as of the
date hereof ((i) and (ii) are sometimes referred to hereinafter as the “Current Defaults”) for a
period of time expiring on March 3, 2006 (the “Expiration Date”). All capitalized terms not
otherwise defined herein shall have the meanings ascribed to such terms in the Loan Agreement.

Notwithstanding the above forbearance, commencing on the date hereof, and until such time as the
Current Defaults, and any other Matured Default occurring after the date hereof, have been remedied
to the satisfaction of Lender, any and all amounts due under the Note or under any other Financing
Agreement, whether for principal, interest, fees, expenses or otherwise, shall bear interest at a
rate per annum equal to the Default Rate, which accrued interest shall be payable for the
immediately preceding one month period by the issuance of additional promissory notes in a form
approved by Lender in the aggregate principal amount equal to the amount of interest calculated at
the Default Rate.

Lender acknowledges that on or before the Expiration Date, Borrowers shall provide to Lender a
schedule outlining the amount and timing or cash deposits to the deposit account referenced in the
Deposit Account Security Agreement (the “Account”) together with evidence demonstrating that such
funds are reasonably expected to be available to meet the proposed schedule. Lender shall have the
right to accept of reject the proposed schedule in its sole discretion.

Upon the earlier of (i) the Expiration Date and (ii) any other Matured Default occurring after the
date hereof, the forbearance set forth in the first paragraph of this letter shall cease to apply,
and Lender shall be permitted to declare one or more Matured Defaults under the Financing
Agreements and to exercise its rights and remedies as a consequence thereof. By execution and
delivery of this letter, Lender is not waiving the Current Defaults. There shall be no extensions
of the Expiration Date unless otherwise agreed to in a writing signed by Lender. Lender (a)
reserves the right to enforce all provisions contained in the Financing Agreements, and (b) is
under no duty or obligation of any kind or any nature to grant Borrowers any additional period of
forbearance beyond the Expiration Date. Furthermore, Lender’s actions in executing and delivering
this letter shall not be construed as a waiver or relinquishment of, or estoppel to assert, any of
Lender’s rights under the Financing Agreements or applicable law and are without prejudice to
Lender’s right to pursue any and all remedies available to it on or after the Expiration Date.
Nothing contained in this letter shall be deemed to be or construed to be a release or waiver by
Lender of Borrowers, and nothing contained herein shall in any manner or form impair the validity
of any lien or security interest granted pursuant to the Financing Agreements. This letter does
not constitute a discharge or novation of any Financing Agreement, and such documents shall
continue in full force and effect and shall be fully binding upon all parties thereto.

Very Truly Yours,

PATRIOT CAPITAL FUNDING LLC I,

A Delaware limited liability company

By:      

Name:      

Title:      

Agreed and Acknowledged:

	 	 	 
	The Allied Defense Group, Inc.	 	News/Sports Microwave Rental, Inc.
	a Delaware corporation	 	a California corporation
	By:      

Name:      

Title:      

	 	By:      

Name:      

Title:      
	 
	 	 
	Titan Dynamics Systems, Inc.

a Texas corporation

	 	SeaSpace Corporation

a California corporation
	 
	 	 
	By:      

Name:      

Title:      

	 	By:      

Name:      

Title:      
	 
	 	 
	MECAR USA, Inc.

a Delaware corporation

	 	Allied Research Corporation Limited

a company formed under the laws of

England and Wales
	 
	 	 
	By:      

Name:      

Title:      

	 	By:      

Name:      

Title:      
	 
	 	 
	Energa Corporation

a Maryland corporation

	 	ARC Europe, S.A.

a Belgium company
	 
	 	 
	By:      

Name:      

Title:      

	 	By:      

Name:      

Title:      
	 
	 	 
	Global Microwave Systems, Inc.

a California corporation

	 	

	 
	 	 
	By:      

Name:      

Title:EXHIBIT 4.1

                          SHAREHOLDERS VOTING AGREEMENT

     This  Shareholders Voting Agreement ("Agreement") is entered into effective
this  31st  day of October, 2003 by and between Grant Douglas Acquisition Corp.,
an Idaho corporation (whose name will be changed to Pediatric Prosthetics, Inc.,
referred  to  herein  as "GRDG") and those individuals or entities identified on
the  signature page and Exhibit A hereof as the "Baldridge Shareholders" and the
"PPI  Shareholders"  of  GRDG  (each  a  "Shareholder"  and  collectively  the
"Shareholders").  Each  of  GRDG  and the Shareholders shall be referred to as a
"Party"  and  collectively  as  the  "Parties."

                                    RECITALS

     WHEREAS,  the  Shareholders  are  or  will  be  the holders of record of an
aggregate  of  8,661,390  shares  (the "Common Shares") of common stock of GRDG,
representing  more  than  68%  of  the  outstanding  common  stock  of GRDG, and
1,000,000 shares of Series A Convertible Preferred Stock of GRDG (the "Preferred
Shares"  and,  together with the Common Shares, the "Shares"), representing 100%
of  the  issued  and  outstanding  shares of preferred stock of GRDG. The Common
Shares  and  Preferred Shares collectively represent more than 87% of the voting
control  of  GRDG.

     WHEREAS,  the  Parties  desire to limit the ability of the Company to issue
additional  stock  and/or  warrants and/or to effectuate stock splits that might
dilute  the  interests  of  the  Shareholders.

     NOW,  THEREFORE,  for good and adequate consideration, the receipt of which
is  hereby  acknowledged,  the  Parties  agree  as  follows:

     1.  Applicable Period. The terms of this Agreement shall apply for a period
         -----------------
of eighteen (18) months following the date hereof (the "Restrictive Period").

     2.  Stock Issuances. If, during the Restrictive Period, the total shares of
         ---------------
common  stock  of  GRDG issued and outstanding (including any stock which may be
acquired  upon  the issuance of options, warrants, or upon the conversion of any
debt  or  other  security  (the  "Conversion  Shares"))  shall exceed 25,000,000
shares,  then  GRDG  shall  cause  to  be  issued  to  each  of  the  Baldridge
Shareholders,  and  those  shareholders  identified on Exhibit B attached hereto
(the  "Baldridge  Beneficial  Shareholders"  and,  together  with  the Baldridge
Shareholders,  the  "Protected  Shareholders") within five (5) business days and
without  consideration  and  without request by the Protected Shareholders, that
number  of  shares  of GRDG so that the each of the Protected Shareholders shall
own,  after  giving  effect  to the stock to be issued hereunder, that number of
GRDG  shares necessary for his or her percentage ownership to be the same as his
percentage  ownership  if  there  were  exactly 25,000,000 shares of GRDG common
stock  (including  Conversion  Shares)  outstanding.  These anti-dilution rights
shall  not  apply  to  shares  not  owned  by  any  of  the respective Protected
Shareholders on the date of any triggering issuance.

10/10/03
                                   Page l of 5

<PAGE>

     3.  Stock Splits. During the Restrictive Period, each of the Parties hereby
         ------------
agrees  during  the  term  of  this Agreement that it will not vote in favor of,
consent  to,  or authorize, any reverse stock split, without the express written
consent of the entire GRDG Board of Directors and the express written consent of
all of the Parties.

     4. Obligations of Transferees. Each transferee or any subsequent transferee
        --------------------------
of the Shares, or any interest in the Shares, shall hold such Shares or interest
in  the  Shares  subject to all of the provisions of this Agreement. Each of the
Parties  agrees that, prior to the transfer of any of the Shares or any interest
in  the  Shares, it will obtain the express written consent of the transferee to
the terms of this Agreement.

     5. General Terms.
        -------------

          a. Assignment. This contract shall inure to the benefit of the parties
     hereto,  their  heirs,  administrators  and  successors  in  interest. This
     Agreement  shall not be assignable by either party hereto without the prior
     written consent of the other.

          b.  Choice  of  Law  and  Venue.  This Agreement and the rights of the
     parties hereunder shall be governed by and construed in accordance with the
     laws  of  the  State  of  Florida  including  all  matters of construction,
     validity,  performance,  and  enforcement  and without giving effect to the
     principles  of  conflict  of  laws.  Any action brought by any party hereto
     shall be brought within the State of Florida, County of Seminole.

          c.  Entire  Agreement.  Except  as  provided  herein,  this Agreement,
     including  exhibits,  contains  the  entire  agreement  of the parties, and
     supersedes  all  existing  negotiations, representations, or agreements and
     all  other  oral,  written, or other communications between them concerning
     the  subject  matter  of  this  Agreement.  There  are  no representations,
     agreements,  arrangements,  or understandings, oral or written, between and
     among  the  parties hereto relating to the subject matter of this Agreement
     that are not fully expressed herein.

          d.  Severability. If any provision of this Agreement is unenforceable,
     invalid,  or  violates  applicable  law,  such  provision, or unenforceable
     portion  of  such  provision, shall be deemed stricken and shall not affect
     the enforceability of any other provisions of this Agreement.

          e.  Captions.  The  captions  in this Agreement are inserted only as a
     matter  of convenience and for reference and shall not be deemed to define,
     limit, enlarge, or describe the scope of this Agreement or the relationship
     of  the parties, and shall not affect this Agreement or the construction of
     any provisions herein.

          f.  Counterparts.  This  Agreement  may  be  executed  in  one or more
     counterparts,  each  of which shall be deemed an original, but all of which
     shall together constitute one and the same instrument.

10/10/03
                                   Page 2 of 5

<PAGE>

          g.  Modification.  No  change, modification, addition, or amendment to
     this  Agreement  shall be valid unless in writing and signed by all parties
     hereto.

          h.  Attorneys  Fees. Except as otherwise provided herein, if a dispute
     should arise between the parties including, but not limited to arbitration,
     the  prevailing  party  shall be reimbursed by the non-prevailing party for
     all  reasonable  expenses  incurred  in  resolving  such dispute, including
     reasonable attorneys' fees.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date hereof.

"GRDG"                                     "Baldridge Shareholders"

Grant Douglas Acquisition Corporation,      The BNK Corporation
an Idaho corporation

/s/ Linda Putback-Bean                      /s/ Orville Baldridge
------------------------------------        ------------------------------
By:  Linda Putback-Bean                     By:  Orville Baldridge
Its: President                              Its: Director

"PPI Shareholders"
                                            /s/ Mary Louise Baldridge
                                            ------------------------------
/s/ Linda Putback-Bean                      By:  Mary Louise Baldridge
---------------------------------           Its: Director
Linda Putback-Bean

/s/ Dan Morgan
-----------------------------------
Dan Morgan

                                   Page 3 of 5
<PAGE>

                                   EXHIBIT A
                           BALDRIDGE SHAREHOLDERS AND
                                PPI SHAREHOLDERS

                                  GRDG                     GRDG
    Name                      Common Shares          Preferred Shares
    ----                      -------------          ----------------
    Linda Putback-Bean          7,210,251                900,000
    Dan Morgan                    801,139                100,000
    The BNK Corp                  650,000                  -0-

      Total                     8,661,390              1,000,000

10/10/03
                                  Page 4 of 5

<PAGE>

                                   EXHIBIT B
                       BALDRIDGE BENEFICIAL SHAREHOLDERS

           Name                                            Total Shares
           ----                                            ------------

          The Lebrecht Group, APLC                            400,000
          VUI Inc.                                            350,000
          Daniel or Jeanie Jordan                             100,000
          Corporate Service Providers                         450,000
          C. James Hiestand                                   175,000
          Brenda C. or Billie W. Evans                        325,000
          Lisa Ann Mitchell                                   375,000
          The BNK Corp                                        650,000
          Fred Lerher or Brenda Lee Hamilton                   50,000
          Ruby Savage                                       1,083,940
          Louise Drugan                                        70,000

             Total Shares                                   4,028,940

10/10/03
                                  Page 5 of 5

<PAGE>

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