Document:

Exhibit 10.3.9

EXECUTION
COPY

TRANSITION
AND RELEASE AGREEMENT

This Transition and Release Agreement (the “Agreement”) is entered into
as of April 30, 2007, by and among Westaff Support, Inc., (the “Company”),
Westaff, Inc. (“Parent”) and Patricia M. Newman (“Executive”) (collectively,
the “Parties”).

1              Resignation as Chief
Executive Officer and Board Member. Executive shall resign from her positions as the Company’s
President and Chief Executive Officer, and from her position on Parent’s Board
of Directors (the “Board”), effective on May 1, 2007 (the “Effective Date”).
Within ten (10) business days following the later of (a) the Effective Date and
(b) the date upon which Executive signs this Agreement, Executive shall receive
a lump-sum severance payment equal to one (1) year of her current base salary,
in accordance with Section 7(b) of her Employment Agreement dated March 16,
2005 (the “Employment Agreement”). For avoidance of doubt, the Parties
acknowledge that this lump-sum severance payment will equal Four Hundred Fifty
Thousand Dollars ($450,000), less applicable tax withholdings.

2.             Equity. On the Effective Date, (a) all of
Executive’s outstanding options to purchase common stock of the Company dated
April 7, 2005, August 15, 2000 and August 14, 2002 shall become fully vested
and exercisable, and (b) all shares of Company restricted stock held by
Executive shall become fully vested. The exercise period for Executive’s vested
options shall expire ninety (90) days following the Service Termination Date
(as defined below). As provided in Section 12 (“Net Exercise”) of this
Agreement, Executive may exercise those options by paying the net exercise
price in stock that is the subject of the options, and that net exercise of the
options may be accomplished on any day, notwithstanding otherwise applicable
restrictions on trading of shares by an executive, director, or former
executive or director of Company..

3.             Transitional
Assistance. The
Parties have agreed that after the Effective Date, Executive shall serve the
Company as a consultant through September 1, 2007 (the “Service Termination
Date”) at which time her further consulting services to the Company will
terminate. Executive will serve as a consultant to the Company from the
Effective Date through the Service Termination Date (the “Transition Period”),
to provide transitional support to members of management, and will serve as an
advisor to the Board and attend meetings of the Board as requested by Parent.
During the Transition Period, Executive will continue to receive her current
base salary and Allowance and maintain her current employee benefits coverage
in the form of COBRA continuation coverage paid for by the Company. On the
Effective Date, Executive shall receive payment of her accrued but unused
vacation time and any accrued but unpaid Allowance and base pay for the period
through the Effective Date. On the Service Termination Date, Executive shall
receive payment of any accrued but unpaid Allowance and base pay through the
Service Termination Date. Except as specifically provided herein, all benefits
and perquisites of employment will cease as of the Service Termination Date or
earlier termination by Executive of her consulting services.

4.             Completion Payment. Executive shall be eligible for an additional
lump sum payment of Two Hundred Thousand Dollars ($200,000), less applicable
tax withholdings,

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following completion of the Transition Period (the “Completion
Payment”). Executive shall receive this payment within ten (10) business days
following the earlier of (a) the Effective Date and (b) the date upon which
Executive signs the General Release of Claims attached hereto as Exhibit A.
Executive shall be eligible to receive the Completion Payment if she is
terminated by the Company without “Cause”. Executive shall not, however, be
eligible for any portion of the Completion Payment if she resigns from her
engagement as a consultant with the Company prior to the Service Termination
Date, or if her engagement as a consultant is terminated by the Company for
Cause. For purposes of this Agreement, “Cause” shall be defined in accordance
with Section 7(a) of the Employment Agreement.

5.             Release of Claims. In exchange for the benefits provided
herein, Executive completely releases the Company, Parent, its and their
affiliated, related, parent or subsidiary corporations, and its and their
present and former directors, officers, and employees from, and agrees not to
file, cause to be filed, or otherwise pursue, any and all claims Executive may
now have or has ever had against any of them, including but not limited to
claims for compensation, bonuses, severance pay, stock options, and all claims
arising from Executive’s employment or the termination of that employment
(including, without limitation, any claims arising under the Title VII of the
Civil Rights Act of 1964, the Age Discrimination in Employment Act, the WARN
Act or any state counterpart, the California Fair Employment and Housing Act,
or any other claims for violation of any federal, state, or municipal
statutes), and any and all claims for attorneys’ fees and costs.

Notwithstanding the foregoing, the Company and Parent are not released
from any obligations (whether under their Certificate of Incorporation, Bylaws,
applicable state law, any indemnification agreement or otherwise) to indemnify
and defend Executive from and against all claims brought against Executive by
shareholders or third parties, including without limitation any shareholder
derivative suit, by reason of her status as an officer or director of the
Company or Parent or the actions of the Company or Parent or the Board of
Directors of the Company or Parent while she was an officer or director
(collectively “Indemnification Claims”.) As such, any obligations of Parent
under any Indemnification Agreement between Parent and Executive shall continue
to be in effect with respect to such Indemnification Claims.

Executive acknowledges that
she has 21 days to consider this Agreement (but may elect to sign it at any
time beforehand), and may consult an attorney in doing so. Executive also
acknowledges that she may revoke this Agreement within 7 days of signing it by
sending a certified letter to that effect to Westaff, Inc., 298 North Wiget
Lane, Walnut Creek, California 94598 Attention: Chief Financial Officer.
Executive understands and agrees that this Agreement shall not become effective
or enforceable and no payments or benefits will be provided hereunder until the
7-day revocation period has expired.

Effective upon Executive’s release of claims if she does not revoke
this Agreement during the 7-day period, Company and Parent release Executive
from all claims, known or unknown, and waive any rights under Section 1542 of
the California Civil Code set out in Section 6 below.

6.             Waiver of Unknown Claims. Executive agrees that because the
foregoing release specifically covers known and unknown claims, Executive
waives any rights under Section 1542 of the California Civil Code, or under any
comparable law of any other 

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jurisdiction. Section 1542 states: “A general
release does not extend to claims which the creditor does not know or suspect
to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with
the debtor.”

7.             Non-Disclosure of
Company Information. Executive
agrees to keep confidential and not to disclose any and all trade secrets or
confidential information of the Company and/or its customers, including, but
not limited to, customer lists, business plan information, terms and conditions
of sales, and confidential personnel information. Executive acknowledges her
continuing obligations under the Confidentiality, Invention, Design Agreement
dated May 19, 2005 that she signed as a condition of her employment with the
Company.

8.             Dispute Resolution. The Parties agree that any and all
disputes arising out of the terms of this Agreement, their interpretation, and
any of the matters herein being released, shall be subject to final and binding
arbitration in San Francisco, California before the American Arbitration
Association under its Commercial Arbitration Rules In any such arbitration, the
prevailing party shall be entitled to injunctive relief in any court of
competent jurisdiction to enforce the arbitrator’s award and shall be awarded
its reasonable attorney’s fees and costs.

9.             Entire Agreement. This Agreement represents the entire
agreement and understanding between the Parties, supersedes and replaces any
and all prior agreements and understandings between them, and shall not be
modified in any way except in writing executed by all Parties. The Parties
further agree that, if any term or portion contained herein shall be found to
be unenforceable under applicable law, such finding shall not invalidate the
whole Agreement, but the Agreement shall be construed as not containing the
particular term or portion held to be invalid and the rights and obligations of
the Parties shall be construed and enforced accordingly. This Agreement shall
be governed by California law.

10.           Counterparts. This Agreement may be executed in
separate counterparts, each of which is deemed to be an original and all of
which taken together constitute one and the same agreement.

11.           Acknowledgement. The Parties acknowledge that (i) they
have read and understand the Agreement and they are fully aware of its legal
effect; (ii) they have had an opportunity to consult with counsel in regard to
this Agreement; and (iii) they are entering into this Agreement freely and
voluntarily, and based on each Party’s own judgment and not on any
representations or promises made by any other Party, other than those contained
in this Agreement.

12.           Net Exercise. In lieu of cash exercising her
options referred to in section 2 (“Equity”) of this Agreement, Executive may
elect to receive shares equal to the value of her option or options (or the
portion thereof being exercised) by notice of such election in writing, in
which event the Company shall issue to the holder hereof a number of shares of
its Common Stock computed using the following formula:

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X = Y(A-B)/A

	
  Where

  	
   

  	
  X

  	
  —

  	
   

  	
  The number of shares of Common Stock to be issued to
  the holder of the options being exercised.

  
	
   

  	
   

  	
  Y

  	
  —

  	
   

  	
  The number of shares of purchasable under the
  exercised options.

  
	
   

  	
   

  	
  A

  	
  —

  	
   

  	
  The fair market value of one share of the Company’s
  Common Stock.

  
	
   

  	
   

  	
  B 

  	
  —

  	
   

  	
  The Exercise Price (as adjusted to the date of such
  calculations).

  

 

For purposes of this Paragraph 12, the fair market
value of the Common Stock, if publicly traded, shall be reported closing price
of the Shares for the day immediately preceding the exercise of this Warrant.
If the Shares are not publicly traded, their fair market value shall be the
price per share that the Company could obtain from a willing buyer for shares
of Common Stock sold by the Company from authorized but unissued shares, as
such prices shall be determined by reference to the most recent sale or
issuance by the Company of Common Stock.

13.           Press Release. Company agrees to issue a press
release, substantially similar to that set forth on Exhibit B and mutually
agreeable to Executive and Company (the “Agreed Press Release”), describing
Executive’s change of status, on or before May 3, 2007 and agrees to post and
maintain the Agreed Press Release on the Company’s Web site along with its
other news releases for 2007.

14.           Recommendation. Parent agrees to have its director or
directors provide a letter of recommendation at Executive’s request
substantially similar to that separately agreed between Executive and Parent
(the “Recommendation Letter”) and to cause Janet Brady or another appropriate
person knowledgeable about Executive’s performance during her tenure as Company
CEO to provide a telephonic reference for Executive substantially similar to
the Recommendation Letter at Executive’s request.

15.           Office Furniture. Executive currently uses office
furniture provided to her to be ergonomically tailored to her use to avoid back
or neck strain (the “Personalized Furniture”). Company agrees to continue to
permit Executive’s use of the Personalized Furniture during the Transition
Period, and at her request to provide her with the Personalized Furniture at
the Service Termination Date.

16.           Executive’s Legal and
Accounting Fees. Upon
reasonable documentation of the costs, Company agrees to reimburse Executive
for her reasonable attorneys’ fees, not to exceed $10,000, in connection with
the drafting, review and negotiation of this Agreement and the transition
services, termination of employment, and mutual release it contemplates. Upon
reasonable documentation of the costs, Company agrees to provide, on a timely
basis, form 1099s and other tax information necessary for Executive to file her
tax returns in connection with the transactions contemplated in this Agreement and
agrees to reimburse Executive for her reasonable accounting and tax planning
costs, not to exceed $10,000, associated with her separation from the company
and exercise of the options and vesting of the restricted stock as provided in
this Agreement. Otherwise, except as expressly provided, each of Company and
Executive will bear their own attorneys’ fees and other professional fees in
connection with the negotiation and enforcement of this Agreement.

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The parties have duly executed this Agreement as of the date(s)
indicated below. 

EXECUTIVE:

	
  /s/ P. M. Newman

  	
   

  	
  Date: April 30, 2007

  
	
  Patricia M.
  Newman

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COMPANY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Westaff Support,
  Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Bonnie A.
  McDonald

  	
   

  	
  Date: April 30, 2007

  
	
  Name: Bonnie A.
  McDonald

  	
   

  	
   

  
	
  Title:  Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PARENT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Westaff, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date: April 30, 2007

  
	
  By:

  	
  /s/ Ronald D. Stevens

  	
   

  	
   

  
	
  Name: Ronald D. Stevens

  	
   

  	
   

  
	
  Title:  Director

  	
   

  	
   

  

 

EXHIBIT A

GENERAL RELEASE OF CLAIMS

In accordance with Section 3 of the Transition and Release Agreement
dated April 30, 2007, by and among Westaff Support, Inc., (the “Company”),
Westaff, Inc. (“Parent”) and Patricia M. Newman (“Executive”) (the “Agreement”),
Executive has elected to enter into this General Release of Claims (“Release”)
on the following terms:

In exchange for the Completion Payment provided under Section 3 of the
Agreement, Executive completely releases the Company, Parent, its and their
affiliated, related, parent or subsidiary corporations, and its and their
present and former directors, officers, and employees from, and agrees not to
file, cause to be filed, or otherwise pursue, any and all claims Executive may
now have or has ever had against any of them, including but not limited to
claims for compensation, bonuses, severance pay, stock options, and all claims
arising from Executive’s employment or the termination of that employment
(including, without limitation, any claims arising under the Title VII of the
Civil Rights Act of 1964, the Age Discrimination in Employment Act, the WARN
Act or any state counterpart, the California Fair Employment and Housing Act,
or any other claims for violation of any federal, state, or municipal
statutes), and any and all claims for attorneys’ fees and costs.

Executive agrees that
because this Release specifically covers known and unknown claims, Executive
waives any rights under Section 1542 of the California Civil Code, or under any
comparable law of any other jurisdiction. Section 1542 states: A general
release does not extend to claims which the creditor does not know or suspect
to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with
the debtor.”

Notwithstanding the
foregoing, the Company and Parent are not released from any obligations
(whether under their Certificate of Incorporation, Bylaws, applicable state
law, any indemnification agreement or otherwise) to indemnify and defend
Executive from and against all claims brought against Executive by shareholders
or third parties, including without limitation any shareholder derivative suit,
by reason of her status as an officer or director of the Company or Parent or
the actions of the Company or Parent or the Board of Directors of the Company
or Parent while she was an officer or director (collectively “Indemnification
Claims”.) As such, any obligations of Parent under any Indemnification
Agreement between Parent and Executive shall continue to be in effect with
respect to such Indemnification Claims.

Executive acknowledges that Executive has 21 days to consider this
Release (but may elect to sign it at any time beforehand), and may consult an
attorney in doing so. Executive also acknowledges that she may revoke this
Release within 7 days of signing it by sending a certified letter to that
effect to Westaff, Inc., 298 North Wiget Lane, Walnut Creek, California 94598
Attention: Chief Financial Officer. Executive understands and agrees that this
Release shall not become effective or enforceable and no payments or benefits
will be provided until the 7-day revocation period has expired.

 

Executive acknowledges that
she has read this Release, fully understands all of its provisions and the consequences
of signing it, and agrees to all of its conditions.

	
  EXECUTIVE:

  
	
   

  
	
   

  
	
  /s/ P. M. Newman

  	
   

  	
  Date:

  	
  April 30, 2007

  
	
  Patricia M.
  NewmanExhibit 10.3.11

 

RETENTION
AGREEMENT

This Retention Agreement (hereafter “Agreement”) is hereby entered into
by and between John P. Sanders (hereafter “Sanders”) and Westaff, Inc., Westaff
(USA), Inc., and Westaff Support, Inc. (hereafter “Westaff”).

A.       Sanders
is employed by Westaff as Senior Vice President, Chief Financial Officer, Controller
and Treasurer pursuant to the February 20, 2001 Employment Contract, as amended
by the Addendum to Employment Contract dated January 2, 2002, and the First
Amendment to Westaff Employment Contract effective March 24, 2006 (the “Employment
Agreement.”)

B.        Westaff
desires to have Sanders remain an employee for a transition period through June
29, 2007 (the “Retention Date”).   As an incentive for Sanders to
remain an employee of Westaff through the Retention Date, Westaff will pay him
in an amount equal to two (2) months’ of his present base salary (a “Retention
Bonus”).

C.        In
consideration of this Retention Bonus, Sanders agrees to release Westaff from any
obligation to pay him severance under the Company’s Key Employee Transition Compensation
Plan, (“KETC”) and Transition Compensation Plan (“TCP”).

THEREFORE, in consideration of the promises and mutual agreements
hereinafter set forth, it is agreed by and between the undersigned as follows:

1.             Sanders agrees to remain an employee and perform his
duties with Westaff through the Retention Date.

2.             Sanders understands and agrees that in consideration for
his promises and covenants contained herein, Westaff will pay Sanders in one
lump sum an amount equivalent to two (2) months’ of his base salary at the time
of signing this Agreement or $40,000 less appropriate withholdings.
Sanders shall receive this Retention Bonus within ten (10) business days of the
Retention Date.

3.             Sanders further understands that he will not be eligible
for any portion of the Retention Bonus if he resigns from his employment with
Westaff prior to the Retention Date, or if his employment is terminated by
Westaff for cause. For purposes of this Agreement, “cause” shall be defined in
accordance with Paragraph l.d. of the Employment Contract.

4.             If any provision of this Agreement is unenforceable, the
remainder of this Agreement shall nonetheless remain binding and in effect.

5.             This Agreement, together with the Employment Agreement,
describe the complete agreement between Sanders and Westaff and supersedes any
and all prior agreements, promises or inducements concerning its subject
matter.

 

	
  Dated:   May 10, 2007

  	
  /s/ John P. Sanders

  	
   

  	
   

  
	
   

  	
  John P. Sanders

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:   May    , 2007

  	
  WESTAFF, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Michael
  T. Willis

  	
   

  	
   

  
	
   

  	
   

  	
  Michael T.
  Willis

  	
   

  	
   

  
	
   

  	
   

  	
  President and Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:   May    , 2007

  	
  WESTAFF (USA), INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Bonnie A.
  McDonald

  	
   

  	
   

  
	
   

  	
   

  	
  Bonnie A. McDonald

  	
   

  	
   

  
	
   

  	
   

  	
  Vice President and Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:   May    , 2007

  	
  WESTAFF SUPPORT, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Michael
  T. Willis

  	
   

  	
   

  
	
   

  	
   

  	
  Michael T. Willis

  	
   

  	
   

  
	
   

  	
   

  	
  President and Chief Executive Officer

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