**___________________________**

**___________________________**

**BANK      OF SCOTLAND**

**funding      of**

**$5,000,000**

**to**

**SIMCLAR,      INC**

----

|                                                                                                                                                                                                                               |                                                                                                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                          | 4th                FloorNew                Uberior House11                Earl Grey StreetEdinburghEH3                9BN For                the attention of: Peter Gordon |
|  Simclar,                Inc. (formerly known as Techdyne, Inc.)Commission                File No. 0-146592230                West 77th StreetHialeahFlorida                33016United                States of America |  Telephone: 0131                659 0846Fax:  0131                659 0863                                                                                   |

**BANKING      FACILITIES**

| **1.** | **Definitions** |
|--------|-----------------|

|   | Words                and expressions used in this letter shall, except where the context                otherwise requires, bear the same meaning as in the Facility                Letter. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.** | **Facilities** |
|--------|----------------|

| **3.** | **Amendments** |
|--------|----------------|

| 3.1. | Subject                to the terms of clause 4 below, Clause 2.3.1 of the Facility Letter                shall                be amended by the deletion of the date "30 September 2005" and the                substitution therefor of the date "30 September 2006". |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2. | Except                as herein expressly amended, the terms and conditions of the Facility                Letter are hereby confirmed and any reference in the Facility Letter                to                "this letter" (or similar phrases) shall, unless the context otherwise                requires, be read and construed as a reference to the Facility Letter                as                amended by this letter and all Security Documents shall continue                to secure                all sums due to **BoS**                by                the Borrower under the Facility Letter as hereby                amended. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **4.** | **Conditions                Precedent** |
|--------|-----------------------------------------|

| 4.1. | Subject                to Clause 4.2, Clause 3 shall not come into effect unless **BoS**                has confirmed in writing to the Borrower                that:- |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | **BoS**                is                satisfied that no Event of Default (as defined in the Agreement)                has                occurred and is continuing unwaived; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | **BoS**                has received a certificate in the form set out in the Schedule to                this                letter executed by the director of the Borrower;                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | **BoS**has                confirmed that all of the conditions precedent to the amendment letter                dated on or around the date hereof between the Borrower and BoS amending                and restating the Agreement have been                satisfied. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2. | If                **BoS**does                not confirm to the Borrower in terms of Clause 4.1 on or prior to                30 March                2006 (or such other date as may be agreed in writing by **BoS**                from time to time) then this letter will lapse and the amendments                to be                made in terms hereof will be of no                effect. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5.** | **Miscellaneous** |
|--------|-------------------|

| 5.1. | No                failure or delay by **BoS**                in                exercising any right or remedy under any **BoS**                Document shall operate as a waiver, and no single or partial exercise                shall prevent further exercise, of any right or                remedy. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2. | If                at any time any provision of this letter is or becomes illegal, invalid                or                unenforceable in any respect under any law of any jurisdiction, neither                the legality, validity or enforceability of the remaining provisions                nor                the legality, validity or enforceability or such provision under                the law                of any other jurisdiction shall in any way be affected or                impaired. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3. | The                Schedule referred to in this letter shall form part of this                letter. |
|------|-------------------------------------------------------------------------------------------------------|

| 5.4. | This                letter is a **BoS**                Document. |
|------|------------------------------------------------------------------|

| **6.** | **Costs                and Expenses** |
|--------|---------------------------------------|

| 6.1. | The                Borrower will pay or reimburse to **BoS**(on                a full indemnity basis) all reasonable legal, accountancy, valuation,                due                diligence and other fees, costs and expenses or tax charged to or                incurred                by **BoS**                in                connection with this letter (including the amendment, waiver, enforcement                or preservation of the **BoS**                rights) on demand. The Borrower authorises **BoS**                to                debit any operating account it has with **BoS**                with the amount of any such fees, costs, expenses or tax which is                payable                from time to time. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **7.** | **Law** |
|--------|---------|

| 7.1. | This                letter will be governed by and construed according to Scots law and                the                Borrower submits to the jurisdiction of the Scottish                Courts. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                   |    |
|----------------------------------------------------------------------------------------|--------------|
| /s/              Peter              Gordon                                        |         |
| Agreed                and accepted for and on behalf ofSimclar,                Inc. by |         |

|                                                           |    |
|-----------------------------------------------------------|--------------|
| /s/                Samuel J.                Russell  |         |
| Director                                                  |         |

|                                                             |    |
|-------------------------------------------------------------|--------------|
| /s/ John                Ian                Durie  |         |
| Director                                                    |         |
|                                                        |         |
| Date                22/12/05                                |         |

----

**This      is the Schedule referred to in the preceding amendment letter between BoS and      Simclar, Inc. **
**dated      **
** 21      December 2005**

**THE      SCHEDULE **

**DIRECTOR'S      CERTIFICATE**

**SIMCLAR,      INC.**

| 2. | Attached                hereto as Exhibit                B                is                a true, correct; and complete copy of the Certificate of Good Standing                of                the Corporation dated l                from the Secretary of State of the State of                Florida. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Attached                hereto as Exhibit                C                are true and complete copies of the resolutions adopted by the Board                of                Directors of the Corporation by written consent, which resolutions                authorize and approve, among other things, the execution, delivery                and                performance of the Facility Letter, the amendment letter dated                l                December 2005 amending the terms of the Facility Letter (the "Amendment                Letter") and the other financing documents to which the Corporation                is a                party and all other instruments and documents to be executed and                delivered                on behalf of the Corporation pursuant to the Facility Letter, the                Amendment Letter and such other financing documents, none of which                resolutions have been amended, modified or revoked and all of which                are in                full force and effect on the date                hereof. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Attached                hereto as Exhibit                D                is                a true, correct and complete copy of the By-laws of the Corporation.                Such                By-laws have not been amended, modified, supplemented or rescinded                and are                in full force and effect on and as of the date                hereof. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The                persons named below have been duly elected and have duly qualified                as, and                on this day are, officers of the Corporation and hold the offices                set                forth opposite their names below, and the signatures set forth opposite                their names below are their genuine                signatures: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                 | Title                                    | Signature |   |
|--------------------------------------|------------------------------------------|-----------|--------|
|                                 |                                     |      |   |
| John                  Ian Durie      | Director                                 |      |   |
|                                 |                                     |      |   |
| Samuel                  John Russell | Chief                  Executive Officer |      |   |

----