PVAXX Ltd., an industrial technology group based in Bermuda, announced yesterday it had signed a money-spinning territorial manufacturing and distribution agreement with RM Squared Ltd.

The agreement allows RM to manufacture and distribute PVAXX pallets within North America, which is expected to be a big market for PVAXX.

Under the terms of the agreement, RM is required to lease 20 production lines from PVAXX over three years.

It comes into effective when PVAXX completes its re-financing through a private placement of a minimum of $75 million, the proceeds of which will be used to pay off a credit facility owed to Merrill Lynch from the end of last December.

It will also use the money to build its production base in Sohar, Oman and to pay for the fabrication of the required pallet production lines both for RM and its own account.

PVAXX will file the audited financial statements for the year ended December 31, 2006, which were due to be filed on or before June 30, following the completion of the ongoing re-financing discussions.

PVAXX has also announced a number of changes to its board composition. Stepping down are the company's US-based directors Mark Thatcher and James Simmons, both of whom are expected to assist RM in the development of RM's pallet business in the US.

Omar Shawaf and Michael Schroter, both non-executive directors, and John O'Doherty, chairman of the board, have also resigned their positions. But Mr. O'Doherty will remain on the board as a non-executive director and will be joined by two further non-executive directors, Henry Cheung and Alastair Gunn-Forbes, who have recently been appointed.

Henry Stevens the company's founder has assumed the role of chairman.

Meanwhile, the trading of shares in PVAXX Ltd. was suspended by The Bermuda Stock Exchange on Wednesday. The suspension was at the request of the directors of the company pending an announcement concerning a pending private placement.

The directors intend to request the lifting of the suspension following completion of the private placement.