Item 1.01 Entry into a Material Definitive Agreement.

On June 8, 2012, Allied Healthcare Products, Inc. ("Allied") and Armstrong Medical Limited ("Armstrong") entered into an agreement to settle outstanding litigation between the parties over a patent held by Armstrong concerning carbon dioxide absorbents for use in anesthesiology.

Under the terms of the settlement agreement, Allied and Armstrong agreed to mutually dismiss a pending declaratory judgment action in the U.S. District Court in for the Eastern District of Missouri regarding the Armstrong patent. In connection with the settlement agreement, Allied will receive broad, perpetual license rights under the Armstrong patent pursuant to a license agreement. In consideration for the settlement agreement, Allied agreed to pay an aggregate of $275,000.00 to Armstrong. The parties agreed that the settlement was intended solely as a compromise of disputed claims, and was not to be understood as a concession or determination that either party has engaged in any wrongdoing.

Further information regarding the disputes between Allied and Armstrong that were resolved pursuant to the settlement agreement is set forth in Note 4:
Commitments and Contingencies, in the Notes to Consolidated Financial Statements on Allied's Form 10-Q for the quarter ending March 31, 2012, filed on May 10, 2012.