UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                    --------

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

      Date of report (Date of earliest event reported): February 29, 2008
                                                        -----------------

                             RCM Technologies, Inc.
               (Exact Name of Registrant as Specified in Charter)


          Nevada                        1-10245              95-1480559
        ----------                   -------------       --------------
      (State or Other              (Commission File        (I.R.S. Employer
      Jurisdiction of                   Number)           Identification No.)
      Incorporation)

     2500 McClellan Avenue, Suite 350
      Pennsauken, NJ                                  08109-4613
- -----------------------------------------------       ----------
     (Address of Principal Executive Offices)         (Zip Code)

    Registrant's telephone number, including area code: (856) 486-1777
                                                       ---------------

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Section Act (17 CFR
230.425). [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12). [ ] Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)). [ ] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240-13e-4(c)).







Item 1.01         Entry into a Material Definitive Agreement.
On  February  29,  2008,  RCM  Technologies,  Inc.  (the  "Registrant")  and RCM
Technologies  Services  Company,  Inc.  (together with the  Registrant,  "RCM"),
entered into a Repayment and Security  Agreement  (the  "Agreement")  with Ideal
Interiors, Inc. ("Ideal"), Creative Interiors Plus, LLC ("Creative"),  DJJ, Inc.
("DJJ") and Ideal Structural Security,  Inc. ("Structural," together with Ideal,
Creative and DJJ,  collectively  the "Trade  Debtors"),  and Frank S.  DeGrande,
Ricardo R. Rivera,  Cadil  Rodriguez  and Louis  Serrante,  as guarantors of the
obligations   of  the  Trade  Debtors  (such   guarantors,   collectively,   the
"Guarantors").

Under the  Agreement,  the Trade  Debtors have agreed to the terms on which they
will pay in full their  obligations to RCM for various services  provided by RCM
pursuant to various agreements and orders referenced in the Agreement. The total
amount due from the Trade Debtors to RCM is  $7,456,252.93,  of which $1,000,000
was paid on the execution of the Agreement and $200,000  shall be paid to RCM on
or before March 14, 2008. Of the  remaining  $6,256,252.93,  $1,250,000  will be
paid not later than July 1, 2008, with the remaining amount due in equal monthly
installments over the three years following that date.  Outstanding amounts bear
interest at a rate of 6.00% per annum.

The payment of all amounts due under the  Agreement by the Trade Debtors and the
performance  of all other  obligations  of Trade Debtors  referred to therein is
secured  by a  perfected  security  interest  in and lien  upon all of the Trade
Collateral (as defined in the Agreement) and all of Trade Debtors' right,  title
and interest in and to all accounts.

Each of the Guarantors has unconditionally  guaranteed and become surety for all
of the obligations of the Trade Debtors under the Agreement.

                                       1




                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                             RCM TECHNOLOGIES, INC.



                              By: /S/Stanton Remer
                                   Stanton Remer
                                   Chief Financial Officer, Treasurer and
                                   Secretary


Dated: March 4, 2008