Westaff (WSTF)

2.    Restricted Cash

During the 12 weeks ended January 24, 2009, the $5.0 million in cash proceeds from the sale of the Company’s former Australia and New Zealand operations and the $5.0 million in cash proceeds from the sale of the Company’s former United Kingdom operations and related subsidiary, totaling $10.0 million, as well as the interest thereon, were held as collateral for U.S. Bank related to the Financing Agreement, as described in Note 8.

Restricted cash

        As of November 1, 2008, the cash proceeds of $5.0 million from the sale of the U.K. operations was held as collateral for U.S. Bank related to the Financing Agreement, as described in Note 7.

F-11

Table of Contents

Westaff, Inc.

Notes to Consolidated Financial Statements (Continued)

4. Summary of Significant Accounting Policies (Continued)

Restricted cash

        As of November 1, 2008, the cash proceeds of $5.0 million from the sale of the U.K. operations was held as collateral for
U.S. Bank related to the Financing Agreement, as described in Note 7.

F-11

HREF="#bG17602A_main_toc">Table of Contents

Westaff, Inc.

Notes to Consolidated Financial Statements (Continued)

4. Summary of Significant Accounting Policies (Continued)

3.    Restricted cash

During the 12 weeks ended July 12, 2008, the cash proceeds of $5.0 million from the sale of the U.K. operations was held as collateral for U.S. Bank related to the Financing Agreement, as described in Note 9.