WESTAFF INC
EX-10.8.24
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<TYPE>EX-10.8-24
<SEQUENCE>10
<FILENAME>a2079418zex-10_824.htm
<DESCRIPTION>EX-10.8.24
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.8.24</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-variant:small-caps;font-weight:bold;margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;text-transform:uppercase;">PARENT GUARANTY</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS PARENT GUARANTY (this &#147;<u>Guaranty</u>&#148;), dated
as of May 17, 2002, is made by WESTAFF, INC., a Delaware corporation (the &#147;<u>Guarantor</u>&#148;)
in favor of GENERAL ELECTRIC&nbsp;CAPITAL CORPORATION, a Delaware corporation,
individually and as US Agent and UK Agent (in such capacities, &#147;<u>Agent</u>&#148;)
for itself and the lenders from time to time signatory to the Credit Agreement
hereinafter defined (&#147;<u>Lenders</u>&#148;).</font></p>

<p style="font-variant:small-caps;font-weight:bold;margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;text-transform:uppercase;">W I T N E S S E T H:</font></b></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, pursuant to that certain Multicurrency Credit
Agreement, dated as of the date hereof, by and among Guarantor, Westaff (USA),
Inc., a California corporation (&#147;<u>Westaff USA</u>&#148;), Westaff (CA), Inc., a
California corporation (&#147;<u>WCA</u>&#148;), Westaff Limited Partnership, a Delaware
limited partnership (&#147;<u>WestLP</u>&#148;, and collectively with Westaff USA and WCA
, the &#147;<u>US Borrowers</u>&#148;), Westaff (U.K.) Limited, a limited liability
company organized under the laws of England and Wales (&#147;<u>UK Borrower</u>&#148;),
Westaff Support, Inc., a California corporation (the &#147;<u>Term Borrower</u>&#148; and
together with US Borrowers and UK Borrower, the &#147;<u>Borrowers</u>&#148; and each a &#147;<u>Borrower</u>&#148;),
the Lenders from time to time party thereto, and Agent (as from time to time
amended, restated, supplemented or otherwise modified, the &#147;<u>Credit Agreement</u>&#148;),
Lenders have agreed to make the Loans to Borrowers, and US Revolving Lenders
have agreed to incur Letter of Credit Obligations on behalf of Westaff USA;</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Guarantor is the direct parent of US Borrower
and indirect parent of Term Borrower and UK Borrower, and as such will derive
direct and indirect economic benefits from the making of the Loans and other
financial accommodations provided to Borrowers pursuant to the Credit
Agreement; and</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, in order to induce Agent and Lenders to enter
into the Credit Agreement and other Loan Documents and to induce Lenders to
make the Loans and to incur Letter of Credit Obligations as provided for in the
Credit Agreement, it is a condition to the obligations of Lenders to make the
Loans and to incur Letter of Credit Obligations that Guarantor agrees to
guaranty payment of the Guaranteed Obligations (as hereinafter defined).</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the premises and
the covenants hereinafter contained, and to induce Lenders to provide the Loans
and other financial accommodations under the Credit Agreement to Borrowers, it
is agreed as follows:</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">DEFINITIONS</font></u>.</b></font></h1>

<p style="margin:12.0pt 0in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capitalized terms used
herein (including the preamble and recitals) shall have the meanings assigned
to them in the Credit Agreement or Annex A thereto, unless otherwise defined herein.</font></p>

<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">References to this &#147;Guaranty&#148; shall mean this Parent
Guaranty, including all amendments, modifications and supplements and any
annexes, exhibits and schedules to any of </font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p style="margin:0in 0in 12.0pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the foregoing, and shall refer to this Parent Guaranty
as the same may be in effect at the time such reference becomes operative.</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160; <b><u><font style="font-weight:bold;">THE
GUARANTY</font></u>.</b></font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Guaranty
of Guaranteed Obligations of Borrowers</u>.&#160;
Guarantor hereby unconditionally guarantees to Agent and Lenders, and
their respective successors, endorsees, transferees and assigns, the prompt
payment (whether at stated maturity, by acceleration or otherwise) and
performance of the Obligations of Borrowers (hereinafter the &#147;<u>Guaranteed
Obligations</u>&#148;).&#160; Guarantor agrees
that this Guaranty is a guaranty of payment and performance and not of
collection, and that its obligations under this Guaranty shall be primary,
absolute and unconditional, irrespective of, and unaffected by:</font></h2>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the genuineness, validity,
regularity, enforceability or any future amendment of, or change in this Guaranty,
any other Loan Document or any other agreement, document or instrument to which
any Credit Party and/or Guarantor are or may become a party;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the absence of any action to enforce
this Guaranty or any other Loan Document or the waiver or consent by Agent
and/or Lenders with respect to any of the provisions thereof;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the existence, value or condition of,
or failure to perfect its Lien against, any Collateral for the Guaranteed
Obligations or any action, or the absence of any action, by Agent in respect
thereof (including, without limitation, the release of any such security); or</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; the insolvency of any Credit Party;
or</font></h3>

<h3 style="font-weight:normal;margin:0in 0in 12.0pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any other action or circumstances
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor,</font></h3>

<p style="margin:0in 0in 6.0pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">it being agreed by
Guarantor that its obligations under this Guaranty shall not be discharged
until the Termination Date.&#160; Guarantor
shall be regarded, and shall be in the same position, as principal debtor with
respect to the Guaranteed Obligations. Guarantor agrees that any notice or
directive given at any time to Agent which is inconsistent with the waiver in
the immediately preceding sentence shall be null and void and may be ignored by
Agent and Lenders, and, in addition, may not be pleaded or introduced as
evidence in any litigation relating to this Guaranty for the reason that such
pleading or introduction would be at variance with the written terms of this
Guaranty, unless Agent and Lenders have specifically agreed otherwise in
writing.&#160; It is agreed among Guarantor,
Agent and Lenders that the foregoing waivers are of the essence of the
transaction contemplated by the Loan Documents and that, but for this Guaranty
and such waivers, Agent and Lenders would decline to enter into the Credit Agreement.</font></p>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Demand
by Agent or Lenders</u>.&#160; In addition to
the terms of this Guaranty set forth in <u>Section 2.1</u> hereof, and in no
manner imposing any limitation on such terms, it is expressly understood and
agreed that, if, at any time, the outstanding principal amount of the
Guaranteed Obligations under the Credit Agreement (including all accrued
interest thereon) is declared to be</font></h2>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;immediately
due and payable, then Guarantor shall, upon demand if no Event of Default has
occurred under Section 8.1(h) and (i) of the Credit Agreement with respect to
any Credit Party, and without demand if any such Event of Default has occurred,
pay to the holders of the Guaranteed Obligations the entire outstanding
Guaranteed Obligations due and owing to such holders.&#160; Payment by Guarantor shall be made to Agent in immediately
available Federal funds to an account designated by Agent or at the address set
forth herein for the giving of notice to Agent or at any other address that may
be specified in writing from time to time by Agent, and shall be credited and
applied to the Guaranteed Obligations.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Enforcement
of Guaranty</u>.&#160; In no event shall
Agent have any obligation (although it is entitled, at its option) to proceed
against any Borrower or any other Credit Party or any Collateral pledged to
secure the Guaranteed Obligations before seeking satisfaction from Guarantor,
and Agent may proceed, prior or subsequent to, or simultaneously with, the
enforcement of Agent&#146;s rights hereunder, to exercise any right or remedy which
it may have against any Collateral, as a result of any Lien it may have as
security for all or any portion of the Guaranteed Obligations.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Waiver</u>.&#160; In addition to, and without limiting the
other waivers contained herein, Guarantor waives, and agrees that it shall not
at any time insist upon, plead or in any manner whatsoever claim or take the
benefit or advantage of, any appraisal, valuation, stay, extension, marshaling
of assets or redemption laws, or exemption, whether now or at any time
hereafter in force, which may delay, prevent or otherwise affect the
performance by Guarantor of its Guaranteed Obligations under, or the
enforcement by Agent or Lenders of, this Guaranty. Guarantor hereby waives
diligence, presentment and demand (whether for non&#150;payment or protest or
of acceptance, maturity, extension of time, change in nature or form of the
Guaranteed Obligations, acceptance of further security, release of further
security, composition or agreement arrived at as to the amount of, or the terms
of, the Guaranteed Obligations, notice of adverse change in any Borrower&#146;s
financial condition or any other fact which might increase the risk to
Guarantor) with respect to any of the Guaranteed Obligations or all other
demands whatsoever and waives the benefit of all provisions of law which are or
might be in conflict with the terms of this Guaranty.&#160; Guarantor waives all rights and defenses arising out of an
election of remedies by Agent or any Lender. Guarantor represents, warrants and
agrees that, as of the date of this Guaranty, its obligations under this
Guaranty are not subject to any offsets or defenses against Agent or Lenders or
any Credit Party of any kind.&#160; Guarantor
further agrees that its obligations under this Guaranty shall not be subject to
any counterclaims, offsets or defenses against Agent or any Lender or against
any Credit Party of any kind which may arise in the future.</font></h2>

<p style="margin:12.0pt 0in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, Guarantor
further acknowledges and agrees that California Civil Code Section 2856
authorizes and validates waivers of a guarantor&#146;s rights of subrogation and
reimbursement and waivers of certain other rights and defenses available to a
guarantor under California law.&#160; Based
on the preceding sentence and without limiting the generality of the foregoing
waivers contained in this Section 2.4 or any other provision hereof, Guarantor
expressly waives to the maximum extent permitted by law any and all rights and
defenses (except the defense of indefeasible final payment in full), which
might otherwise be available to such Guarantor under California Civil Code
Sections 2787 to 2855, inclusive, 2899 and 3433 and under California Code of
Civil Procedure Sections 580a, 580b, 580d and 726 (or any of such </font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">sections),
or any other jurisdiction to the extent the same are applicable to this
Guaranty or the agreements, covenants or obligations of such Guarantor
hereunder.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Benefit of Guaranty</u>.&#160; The provisions of this Guaranty are for the
benefit of Agent and Lenders and their respective successors, transferees,
endorsees and assigns permitted under the Credit Agreement, and nothing herein
contained shall impair, as between any Credit Party and Agent or Lenders, the
obligations of any Credit Party under the Loan Documents.&#160; In the event all or any part of the
Guaranteed Obligations are transferred, indorsed or assigned by Agent or any
Lender to any Person or Persons in accordance with the terms of the Credit
Agreement, any reference to &#147;Agent&#148; or &#147;Lender&#148; herein shall be deemed to refer
equally to such Person or Persons.</font></h2>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Modification of Guaranteed
Obligations, Etc</u>.&#160; Guarantor hereby
acknowledges and agrees that Agent and Lenders may at any time or from time to
time, with or without the consent of, or notice to, Guarantor:</font></h2>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; change or extend the manner, place or
terms of payment of, or renew or alter all or any portion of, the Guaranteed
Obligations;</font></h3>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; take any action under or in respect
of the Loan Documents in the exercise of any remedy, power or privilege
contained therein or available to it at law, equity or otherwise, or waive or
refrain from exercising any such remedies, powers or privileges;</font></h3>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; amend or modify, in any manner
whatsoever, the Loan Documents;</font></h3>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; extend or waive the time for any
Credit Party&#146;s performance of, or compliance with, any term, covenant or agreement
on its part to be performed or observed under the Loan Documents, or waive such
performance or compliance or consent to a failure of, or departure from, such
performance or compliance;</font></h3>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; take and hold Collateral for the
payment of the Guaranteed Obligations guarantied hereby or sell, exchange,
release, dispose of, or otherwise deal with, any property pledged, mortgaged or
conveyed, or in which Agent or Lenders have been granted a Lien, to secure any
Obligations;</font></h3>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; release anyone who may be liable in
any manner for the payment of any amounts owed by Guarantor or any Credit Party
to Agent or any Lender;</font></h3>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; modify or terminate the terms of any
intercreditor or subordination agreement pursuant to which claims of other
creditors of Guarantor or any Credit Party are subordinated to the claims of
Agent and Lenders; and/or</font></h3>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; apply any sums by whomever paid or
however realized to any amounts owing by Guarantor or any Credit Party to Agent
or any Lender in such manner as Agent or any Lender shall determine in its
discretion;</font></h3>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and
Agent and Lenders shall not incur any liability to Guarantor as a result
thereof, and no such action shall impair or release the Guaranteed Obligations
of Guarantor or any of them under this Guaranty.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Reinstatement.&#160; This Guaranty shall remain in full force and
effect and continue to be effective should any petition be filed by or against
any Credit Party or Guarantor for liquidation or reorganization, should any
Credit Party or Guarantor become insolvent or make an assignment for the
benefit of creditors or should a receiver or trustee be appointed for all or
any significant part of such Credit Party&#146;s or such Guarantor&#146;s assets, and
shall continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Guaranteed Obligations, or any part thereof, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise
be restored or returned by Agent or any Lender, whether as a &#147;voidable
preference&#148;, &#147;fraudulent conveyance&#148;, or otherwise, all as though such payment
or performance had not been made.&#160; In
the event that any payment, or any part thereof, is rescinded, reduced,
restored or returned, the Guaranteed Obligations shall be reinstated and deemed
reduced only by such amount paid and not so rescinded, reduced, restored or
returned.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Deferral of Subrogation, Etc</u>.&#160; Notwithstanding anything to the contrary in
this Guaranty, or in any other Loan Document, Guarantor hereby:</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; expressly and irrevocably waives, on
behalf of itself and its successors and assigns (including any surety) until
the Termination Date, any and all rights at law or in equity to subrogation, to
reimbursement, to exoneration, to contribution, to indemnification, to set off
or to any other rights that could accrue to a surety against a principal, to a
guarantor against a principal, to a guarantor against a maker or obligor, to an
accommodation party against the party accommodated, to a holder or transferee
against a maker, or to the holder of any claim against any Person, and which
such Guarantor may have or hereafter acquire against any Credit Party in
connection with or as a result of such Guarantor&#146;s execution, delivery and/or
performance of this Guaranty, or any other documents to which such Guarantor is
a party or otherwise; and</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; acknowledges and agrees (i) that this
waiver is intended to benefit Agent and Lenders and shall not limit or
otherwise affect Guarantor&#146;s liability hereunder or the enforceability of this
Guaranty, and (ii) that Agent, Lenders and their respective successors and
assigns permitted under the Credit Agreement are intended third party
beneficiaries of the waivers and agreements set forth in this <u>Section 2.8</u>
and their rights under this <u>Section 2.8</u> shall survive payment in full of
the Guaranteed Obligations.</font></h3>

<h3 style="font-weight:normal;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Election of Remedies</u>.&#160;&#160; If Agent may, under applicable law, proceed
to realize benefits under any of the Loan Documents giving Agent and Lenders a
Lien upon any Collateral owned by any Credit Party, either by judicial
foreclosure or by non&#150;judicial sale or enforcement, Agent may, at its
sole option, determine which of such remedies or rights it may pursue without
affecting any of such rights and remedies under this Guaranty.&#160; If, in the exercise of any of its rights and
remedies, Agent shall forfeit any of its rights or remedies, including its
right to enter a deficiency judgment against any Credit Party, whether because
of any applicable laws pertaining to &#147;election of remedies&#148; or the like,
Guarantor hereby consents to such action by Agent and waives any claim based
upon such action, even if such action by Agent shall result in a full or </font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<h2 style="font-weight:normal;margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">partial loss of any rights of subrogation which
Guarantor might otherwise have had but for such action by Agent.&#160; Any election of remedies which results in
the denial or impairment of the right of Agent to seek a deficiency judgment
against any Credit Party shall not impair Guarantor&#146;s obligation to pay the
full amount of the Guaranteed Obligations.&#160;
In the event Agent shall bid at any foreclosure or trustee&#146;s sale or at
any private sale permitted by law or the Loan Documents, Agent may bid all or
less than the amount of the Guaranteed Obligations and the amount of such bid
need not be paid by Agent but shall be credited against the Guaranteed
Obligations.&#160; Subject to the applicable
law, the amount of the successful bid at any such sale shall be conclusively
deemed to be the fair market value of the collateral and the difference between
such bid amount and the remaining balance of the Guaranteed Obligations shall
be conclusively deemed to be the amount of the Guaranteed Obligations
guaranteed under this Guaranty, notwithstanding that any present or future law
or court decision or ruling may have the effect of reducing the amount of any
deficiency claim to which Agent and Lenders might otherwise be entitled but for
such bidding at any such sale.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Funds
Transfers</u>.&#160; If Guarantor shall
engage in any transaction as a result of which any Borrower is required to make
a mandatory prepayment with respect to the Guaranteed Obligations under the
terms of the Credit Agreement (including any issuance or sale of such
Guarantor&#146;s Stock or any sale of its assets), such Guarantor shall distribute
to, or make a contribution to the capital of, one or more of the Borrowers an
amount equal to the mandatory prepayment required under the terms of the Credit
Agreement.</font></h2>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160; <u>REPRESENTATIONS
AND WARRANTIES</u>.</font></h1>

<p style="margin:12.0pt 0in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To induce Lenders to make
the Loans and incur Letter of Credit Obligations under the Credit Agreement,
each of Guarantor&#146;s representations and warranties made in the Credit Agreement
are incorporated by reference and repeated herein to Agent and Lenders, each
and all of which shall survive the execution and delivery of this Guaranty.</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160; <u>FURTHER
ASSURANCES</u>.</font></h1>

<p style="margin:12.0pt 0in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Guarantor agrees, upon
the written request of Agent or any Lender, to execute and deliver to Agent or
such Lender, from time to time, any additional instruments or documents
reasonably considered necessary by Agent or such Lender to cause this Guaranty
to be, become or remain valid and effective in accordance with its terms.</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160; <u>PAYMENTS
FREE AND CLEAR OF TAXES</u>.</font></h1>

<p style="margin:12.0pt 0in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All payments required to
be made by Guarantor hereunder shall be made to Agent and Lenders free and
clear of, and without deduction for, any and all present and future Taxes.&#160; If Guarantor shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder, (a) the sum
payable shall be increased as much as shall be necessary so that after making
all required deductions (including deductions applicable to additional sums
payable under this <u>Section 6</u>) Agent or Lenders, as applicable, receive
an amount equal to the sum they would have received had no such deductions been
made, (b) Guarantor shall make such deductions, and (c) Guarantor shall pay the
full amount deducted to the relevant taxing or other authority in accordance
with applicable law.&#160; Within thirty (30)
days after the date of any </font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>


<div style="margin:0in 0in 12.0pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="margin:0in 0in 6.0pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">payment of Taxes,
Guarantor shall furnish to Agent the original or a certified copy of a receipt
evidencing payment thereof.&#160; Guarantor
shall indemnify and, within ten (10) days of demand therefor, pay Agent and
each Lender for the full amount of Taxes (including any Taxes imposed by any
jurisdiction on amounts payable under this <u>Section 6</u>) paid by Agent or
such Lender, as appropriate, and any liability (including penalties, interest
and expenses) arising therefrom or with respect thereto, whether or not such
Taxes were correctly or legally asserted.</font></p>

<h1 style="font-weight:normal;margin:0in 0in 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160; <u>OTHER
TERMS</u>.</font></h1>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Entire
Agreement</u>.&#160; This Guaranty, together
with the other Loan Documents, constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior
agreements relating to a guaranty of the loans and advances under the Loan
Documents or the Guaranteed Obligations or both.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Headings</u>.&#160; The headings in this Guaranty are for
convenience of reference only and are not part of the substance of this
Guaranty.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severability</u>.&#160; Whenever possible, each provision of this
Guaranty shall be interpreted in such a manner to be effective and valid under
applicable law, but if any provision of this Guaranty shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Notices</u>.&#160; Whenever it is provided herein that any
notice, demand, request, consent, approval, declaration or other communication
shall or may be given to or served upon any of the parties by any other party,
or whenever any of the parties desires to give or serve upon another any such
communication with respect to this Guaranty, each such notice, demand, request,
consent, approval, declaration or other communication shall be in writing and
shall be given in the manner, and deemed received, as provided for in Section
11.10 (&#147;Notices&#148;) and Annex I of the Credit Agreement.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Successors
and Assigns</u>.&#160; This Guaranty and all
obligations of Guarantor hereunder shall be binding upon the successors and
assigns of Guarantor (including a debtor-in-possession on behalf of such
Guarantor) and shall, together with the rights and remedies of Agent, for
itself and for the benefit of Lenders, hereunder, inure to the benefit of Agent
and Lenders, all future holders of any instrument evidencing any of the
Obligations and their respective successors and assigns as permitted under the
Credit Agreement.&#160; No sales of
participations, other sales, assignments, transfers or other dispositions of
any agreement governing or instrument evidencing the Obligations or any portion
thereof or interest therein shall in any manner affect the rights of Agent and
Lenders hereunder.&#160; Guarantor may not
assign, sell, hypothecate or otherwise transfer any interest in or obligation
under this Guaranty.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No
Waiver; Cumulative Remedies; Amendments</u>.&#160;
Neither Agent nor any Lender shall by any act, delay, omission or
otherwise be deemed to have waived any of its rights or remedies hereunder, and
no waiver shall be valid unless in writing, signed by Agent and then only to
the extent therein set forth.&#160; A waiver
by Agent, for itself and the ratable benefit of Lenders, of any right or remedy
hereunder on any one occasion shall not be construed as a bar to </font></h2>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>


<div style="margin:0in 0in 12.0pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">any right or
remedy which Agent would otherwise have had on any future occasion.&#160; No failure to exercise nor any delay in
exercising on the part of Agent or any Lender, any right, power or privilege
hereunder, shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or
future exercise thereof or the exercise of any other right, power or
privilege.&#160; The rights and remedies
hereunder provided are cumulative and may be exercised singly or concurrently,
and are not exclusive of any rights and remedies provided by law.&#160; None of the terms or provisions of this
Guaranty may be waived, altered, modified, supplemented or amended except by an
instrument in writing, duly executed by Agent and Guarantor.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination</u>.&#160; This Guaranty is a continuing guaranty and
shall remain in full force and effect until the Termination Date.&#160; Immediately after the Termination Date,
Agent shall deliver to Guarantor, at Guarantor&#146;s expense, such documents as
Guarantor may reasonably request to evidence such termination.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Counterparts</u>.&#160; This Guaranty may be executed in any number
of counterparts, each of which shall collectively and separately constitute one
and the same agreement.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>GOVERNING LAW; CONSENT TO
JURISDICTION AND VENUE</u>.</font></h2>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN ALL RESPECTS,
INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS GUARANTY
AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA<b><font style="font-weight:bold;">  </font></b>APPLICABLE
TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, AND ANY APPLICABLE LAWS OF THE
UNITED STATES OF AMERICA.&#160; GUARANTOR
HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN SAN
FRANCISCO COUNTY, CITY OF SAN FRANCISCO, CALIFORNIA, SHALL HAVE EXCLUSIVE
JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG
GUARANTOR, AGENT OR ANY LENDER PERTAINING TO THIS GUARANTY OR TO ANY MATTER
ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OF THE OTHER LOAN DOCUMENTS,
<u>PROVIDED</u>, <u>THAT</u> AGENT AND GUARANTOR ACKNOWLEDGE THAT ANY APPEALS
FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF SAN
FRANCISCO COUNTY, AND, <u>PROVIDED</u>, <u>FURTHER</u>, <u>THAT</u> NOTHING IN
THIS GUARANTY SHALL BE DEEMED OR OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT
OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE
COLLATERAL OR ANY OTHER SECURITY FOR THE GUARANTEED OBLIGATIONS, OR TO ENFORCE
A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT, FOR THE BENEFIT OF AGENT AND
LENDERS.&#160; GUARANTOR EXPRESSLY SUBMITS
AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN
ANY SUCH COURT, AND GUARANTOR HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE
BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR <u>FORUM</u>  <u>NON</u>
<u>CONVENIENS</u> AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.&#160; GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF
THE SUMMONS, COMPLAINT AND OTHER PROCESS </font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ISSUED
IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS
AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH
GUARANTOR AS PROVIDED HEREIN AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED
UPON THE EARLIER OF ACTUAL RECEIPT THEREOF AND FIVE (5) DAYS AFTER DEPOSIT IN
THE U.S. MAILS, PROPER POSTAGE PREPAID.</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.10&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>WAIVER OF JURY TRIAL</u>.</font></h2>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">BECAUSE DISPUTES
ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND
ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH
APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES),
GUARANTOR AND AGENT DESIRE THAT DISPUTES ARISING HEREUNDER OR RELATING HERETO
BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.&#160; THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE
JUDICIAL SYSTEM AND OR ARBITRATION, GUARANTOR AND AGENT WAIVE ALL RIGHTS TO
TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED
WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED IN CONNECTION
WITH THIS GUARANTY AND THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED
HERETO OR THERETO.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.11&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Judgment Currency.&#160; If, for the purpose of obtaining judgment in
any court, it is necessary to convert an amount due hereunder in the currency
in which it is due (the &#147;<u>Original Currency</u>&#148;) into another currency (the
&#147;<u>Second Currency</u>&#148;), the rate of exchange applied shall be that at which,
in accordance with normal banking procedures, Agent could purchase in the
applicable foreign exchange market, the Original Currency with the Second
Currency on the date two Business Days preceding that on which judgment is
given.&#160; Guarantor agrees that its obligation
in respect of any Original Currency due from it hereunder shall,
notwithstanding any judgment or payment in such other currency, be discharged
only to the extent that, on the Business Day following the date Agent receives
payment of any sum so adjudged to be due hereunder in the Second Currency,
Agent may, in accordance with normal banking procedures, purchase, in the
applicable foreign exchange market, the Original Currency with the amount of
the Second Currency so paid; and if the amount of the Original Currency so
purchased or could have been so purchased is less than the amount originally
due in the Original Currency, Guarantor agrees as a separate obligation and
notwithstanding any such payment or judgment to indemnify Agent against such
loss.&#160; The term &#147;rate of exchange&#148; in
this <u>Section 6.11</u> means the Spot Rate at which Agent, in accordance with
normal practices, is able on the relevant date to purchase the Original
Currency with the Second Currency, and includes any premium and costs of
exchange payable in connection with such purchase.</font></h2>

<h2 style="font-weight:normal;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h1 style="font-weight:normal;margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160; <u>SECURITY</u>.</font></h1>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To secure payment
of Guarantor&#146;s obligations under this Guaranty, concurrently with the execution
of this Guaranty, Guarantor has entered into a Security Agreement pursuant to </font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>


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<p style="margin:0in 0in 6.0pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">which Guarantor has
granted to Agent for the benefit of Lenders a security interest in
substantially all of its personal property and has entered into a Pledge
Agreement pursuant to which Guarantor has pledged the Pledged Collateral
(defined therein) to Agent for the benefit of Lenders.</font></p>

<h1 style="font-weight:normal;margin:0in 0in 6.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160; <u>CREDIT AGREEMENT</u>.</font></h1>

<p style="margin:12.0pt 0in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Guarantor agrees to
perform, comply with and be bound by the covenants contained in Sections 4, 5
and 6 of the Credit Agreement applicable to Parent (alone or as a Credit Party)
(which provisions are incorporated herein by reference).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Signature Page to
Follow]</font></p>

<p align="center" style="margin:0in 0in 12.0pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>


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<p align="center" style="font-size:12.0pt;margin:0in 0in 12.0pt;text-align:center;text-indent:0in;">&nbsp;</p>

<p style="margin:0in 0in 12.0pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties hereto have executed
and delivered this Guaranty as of the date first above written.</font></p>

<p style="margin:0in 0in .0001pt 2.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WESTAFF, INC.</font></b><font size="2" style="font-size:10.0pt;">,</font></p>
  </td>
 </tr>
 <tr>
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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Delaware corporation</font></p>
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 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Dirk A. Sodestrom</font></u></p>
  </td>
 </tr>
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  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Dirk A. Sodestrom</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Senior Vice President and Chief Financial
  Officer</font></p>
  </td>
 </tr>
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  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
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  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">GENERAL
  ELECTRIC CAPITAL CORPORATION</font></b><font size="2" style="font-size:10.0pt;">,</font></p>
  </td>
 </tr>
 <tr>
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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
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  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">as Agent</font></p>
  </td>
 </tr>
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  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Lawrence E. Ridgway</font></u></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: Lawrence E.
  Ridgway</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in .7pt 0in .7pt;width:50.0%;">
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: Duly Authorized Signatory</font></p>
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  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>


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