Document:

<PAGE>   1
                                                                    EXHIBIT 10.7

                  COLLINS FOODS GROUP PTY LTD ACN 009 937 900
                  COLLINS FOODS INTERNATIONAL PTY LTD ARBN 009 980 250
                  COLLINS INTERNATIONAL INC
                  COLLINS RESTAURANTS QUEENSLAND PTY LTD ACN 009 988 381
                  SIZZLER NEW ZEALAND LIMITED
                  SIZZLER SOUTH PACIFIC PTY LTD ARBN 010 713 952
                  SIZZLER SOUTH-EAST ASIA INC
                  SIZZLER RESTAURANTS GROUP PTY LTD ACN 010 102 388
                  SIZZLER RESTAURANT SERVICES, INC
                  SIZZLER ASIA HOLDINGS INC.
                  COLLINS RESTAURANTS MANAGEMENT PTY LTD ACN 093 912 979

                                (EACH A 'DEBTOR')

                  SIZZLER INTERNATIONAL, INC.
                  SIZZLER INTERNATIONAL MARKS INC.
                  RESTAURANT CONCEPTS OF AUSTRALIA, PTY LTD
                  SIZZLER FRANCHISE DEVELOPMENT, LTD
                  FURNACE CONCEPTS INTERNATIONAL, INC
                  FURNACE CONCEPTS AUSTRALIA CORP. ARBN 070 065 468
                  RESTAURANT CONCEPTS INTERNATIONAL INC,
                  SIZZLER AUSTRALIA PTY LTD ACN 010 060 876
                  COLLINS PROPERTY DEVELOPMENT PTY LTD ACN 010 539 616
                  COLLINS FINANCE AND MANAGEMENT PTY LTD ACN 009 996 721
                  COLLINS FOODS AUSTRALIA PTY LTD ACN 009 914 103

                           (EACH A 'JUNIOR CREDITOR')

                  WESTPAC BANKING CORPORATION ARBN 007 457 141

                               ('SENIOR CREDITOR')

                               SUBORDINATION DEED

                                 MINTER ELLISON
                                     Lawyers
                                Waterfront Place
                                 1 Eagle Street
                                BRISBANE QLD 4000
                                 DX 102 BRISBANE
                            Telephone (07) 3226 6333
                            Facsimile (07) 3229 1066

                                   GB 1090692

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

<S>      <C>                                                                                <C>
1.       INTERPRETATION......................................................................2

2.       CONSIDERATION.......................................................................4

3.       SUBORDINATION.......................................................................5

4.       REPRESENTATIONS AND WARRANTIES......................................................7

5.       PERMITTED PAYMENTS..................................................................7

6.       RESTRICTIONS ON INDEBTEDNESS........................................................8

7.       UNDERTAKINGS........................................................................8

8.       PRESERVATION OF SENIOR CREDITOR'S RIGHTS...........................................10

9.       NO COMPETITION.....................................................................10

10.      OTHER SECURITY.....................................................................10

11.      COSTS AND EXPENSES.................................................................10

12.      SET OFF............................................................................11

13.      ASSIGNMENT.........................................................................11

14.      POWER OF ATTORNEY..................................................................11

15.      CERTIFICATES.......................................................................12

16.      NOTICES............................................................................12

17.      SEVERABILITY.......................................................................13

18.      GOVERNING LAW AND JURISDICTION.....................................................13

19.      AGENT FOR SERVICE OF PROCESS.......................................................13

20.      ATTORNEYS..........................................................................14

21.      NOVATION AND TERMINATION OF EARLIER DEED...........................................14
</TABLE>

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                               SUBORDINATION DEED

DEED dated August 21, 2000

BETWEEN:          COLLINS FOODS GROUP PTY LTD ACN 009 937 900
                  COLLINS FOODS INTERNATIONAL PTY LTD ARBN 009 980 250
                  COLLINS INTERNATIONAL INC, A COMPANY INCORPORATED IN DELAWARE,
                  UNITED STATES OF AMERICA
                  COLLINS RESTAURANTS QUEENSLAND PTY LTD ACN 009 988 381
                  SIZZLER NEW ZEALAND LIMITED, A COMPANY INCORPORATED IN NEVADA,
                  UNITED STATES OF AMERICA
                  SIZZLER SOUTH PACIFIC PTY LTD ARBN 010 713 952
                  SIZZLER SOUTH-EAST ASIA INC, A COMPANY INCORPORATED IN NEVADA,
                  UNITED STATES OF AMERICA
                  SIZZLER RESTAURANTS GROUP PTY LTD ACN 010 102 388
                  SIZZLER RESTAURANT SERVICES, INC, A COMPANY INCORPORATED IN
                  NEVADA, UNITED STATES OF AMERICA
                  SIZZLER ASIA HOLDINGS, INC, A COMPANY INCORPORATED IN
                  DELAWARE, UNITED STATES OF AMERICA
                  COLLINS RESTAURANTS MANAGEMENT PTY LTD ACN 093 912 979
                  each of or c/- 16 Edmondstone Street, Newmarket, Brisbane,
                  Queensland, Australia
                                                               (EACH A 'DEBTOR')

AND               SIZZLER INTERNATIONAL, INC., A COMPANY INCORPORATED IN
                  DELAWARE, UNITED STATES OF AMERICA
                  SIZZLER INTERNATIONAL MARKS INC., A COMPANY INCORPORATED IN
                  DELAWARE, UNITED STATES OF AMERICA
                  RESTAURANT CONCEPTS OF AUSTRALIA, PTY LTD
                  SIZZLER FRANCHISE DEVELOPMENT, LTD, A COMPANY INCORPORATED IN
                  BERMUDA
                  FURNACE CONCEPTS INTERNATIONAL, INC, A COMPANY INCORPORATED IN
                  NEVADA, UNITED STATES OF AMERICA
                  FURNACE CONCEPTS AUSTRALIA CORP. ARBN 070 065 468
                  RESTAURANT CONCEPTS INTERNATIONAL INC, A COMPANY INCORPORATED
                  IN NEVADA, UNITED STATES OF AMERICA
                  SIZZLER AUSTRALIA PTY LTD ACN 010 060 876
                  COLLINS PROPERTY DEVELOPMENT PTY LTD ACN 010 539 616
                  COLLINS FINANCE AND MANAGEMENT PTY LTD ACN 009 996 721
                  COLLINS FOODS AUSTRALIA PTY LTD ACN 009 914 103

                  each of c/- 16 Edmondstone Street, Newmarket, Brisbane,
                  Queensland, Australia
                                                 (EACH A 'JUNIOR CREDITOR')

AND               WESTPAC BANKING CORPORATION ARBN 007 457 141, of 260 Queen
                  Street, Brisbane, Queensland

                                                     ('SENIOR CREDITOR')

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                                       2

RECITAL

The Senior Creditor, each Junior Creditor and each Debtor have agreed that the
Subordinated Debt will be subordinated to the Senior Debt on the terms and to
the extent provided in this document.

AGREEMENT

1.       INTERPRETATION

1.1      DEFINITIONS

         In this document:

         'ACCESSION DEED' means an Accession Deed substantially in the form of
         annexure 'A'.

         'AUTHORISED OFFICER' means, in relation to a body corporate, a person
         for the time being holding or acting in the office of director, chief
         executive, deputy chief executive or secretary of that body corporate
         or a person the title of whose office at the body corporate includes
         the word 'Manager' or the word 'Director' or the like.

         'BUSINESS DAY' means a day on which the Senior Creditor is generally
         open for business except a Saturday, Sunday or public holiday.

         'CONTROLLER' means an administrator, receiver, receiver and manager,
         trustee, provisional liquidator, liquidator, inspector, statutory
         manager or any other person (however described) holding or appointed to
         an analogous office or acting or purporting to act in an analogous
         capacity whether pursuant to any statute, the order or authority of any
         Public Authority, a Security Interest or otherwise.

         'EVENT OF DEFAULT' means any event of default or other event in
         relation to or under any document or arrangement evidencing the
         Subordinated Debt or Senior Debt which entitles a Junior Creditor or
         the Senior Creditor to accelerate the due date for payment or discharge
         of any liability.

         'GROUP' has the same meaning as in the Negative Pledge.

         'GUARANTEE' means a guarantee, indemnity, letter of credit, letter of
         comfort or any other obligation whatever called and of whatever nature
         by which a person is responsible for an obligation or debt of another.

         'JUNIOR CREDITOR' includes the parties specified as such on the first
         page of this documents and any person who becomes a Junior Creditor
         under an Accession Deed;

         'NEGATIVE PLEDGE' means the Unlimited Cross Guarantee and Indemnity and
         Negative Pledge with Financial Ratio Covenants dated on or around the
         date of this document between the Senior Creditor, Collins Foods Group
         Pty Ltd and its Subsidiaries and others.

         'POTENTIAL EVENT OF DEFAULT' means any event, thing or circumstance
         which with the giving of notice or passage of time or both would become
         an Event of Default.

         'PUBLIC AUTHORITY' means the Crown, any government or minister or any
         governmental, semi-governmental or judicial entity, department,
         instrumentality or authority.

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                                       3

         'RESTRUCTURE' means the restructure of the Group as described to
         Westpac before the date of this Deed. For the purpose of this Deed, the
         Restructure is complete when:

         (a)      Collins Foods Group Pty Ltd ACN 009 937 900 holds all of the
                  issued shares in:

                  -       Sizzler Asia Holdings, Inc;

                  -       Collins Restaurants Queensland Pty Ltd;

                  -       Collins Restaurants Management Pty Ltd; and

                  -       Sizzler Restaurants Group Pty Ltd; and

         (b)      Sizzler Asia Holdings, Inc. holds all of the issued shares in:

                  -       Sizzler Restaurant Services, Inc;

                  -       Sizzler South East Asia, Inc; and

                  -       Sizzler New Zealand, Limited; and

                  not less than 50% of the issued shares in Sizzler Steak
                  Seafood Salad (S) Pte Ltd; and

         (c)      all of the issued shares in Collins Food Group Pty Ltd ACN 009
                  937 900 are held by Restaurants Concepts International, Inc.

         'SECURITY INTEREST' means any mortgage, pledge, lien, charge or other
         preferential right, trust arrangement, agreement or arrangement of any
         kind given or created as or by way of security.

         'SENIOR DEBT' means all money, debts and liabilities now or in the
         future owing or remaining unpaid by any Debtor to the Senior Creditor
         (whether actually or contingently and whether alone or with any other
         person) on any account or in any way whatever.

         'SIZZLER INTERNATIONAL' means Sizzler International Inc. a company
         incorporated in Delaware, United States of America.

         'SUBORDINATED DEBT' means all money, debts and liabilities now or in
         the future owing or remaining unpaid by any Debtor to any Junior
         Creditor (whether actually or contingently and whether alone or with
         any other person) on any account or in any way whatever.

         'SUBSIDIARY' has the same meaning it has in the Negative Pledge.

         'SURETY', in respect of a Debtor, means a person other than the Debtor
         who at any time has given a Guarantee, alone or jointly or jointly and
         severally in respect of the Debtor's Senior Debt or Subordinated Debt.

         'WINDING UP' of or in relation to a person includes:

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                                       4

         (a)      the dissolution, receivership, administration, liquidation,
                  provisional liquidation or bankruptcy of that person and any
                  form of administration of that person under any law relating
                  to insolvency or bankruptcy; and

         (b)      any equivalent or analogous procedure (however described) to
                  which that person may be subject under the law of any
                  jurisdiction.

1.2      CONSTRUCTION

         In this document, headings are for reference only and do not affect its
         meaning and unless the contrary intention appears:

         (a)      the singular includes the plural and vice versa and words
                  importing a gender include other genders;

         (b)      other grammatical forms of defined words or expressions have
                  corresponding meanings;

         (c)      where there are two or more persons bound or to be bound an
                  agreement or obligation binds those persons severally and any
                  two or more of them jointly;

         (d)      a reference to a party to this document includes that party's
                  successors and permitted assigns;

         (e)      a reference to a document or agreement, including this
                  document, includes a reference to that document or agreement
                  as novated, altered or replaced from time to time;

         (f)      a reference to writing includes any mode of representing or
                  reproducing words in a visible form;

         (g)      a reference to any thing includes the whole or any part of
                  that thing and a reference to a group of things or persons
                  includes each thing or person in that group;

         (h)      a reference to 'dollar' or '$' is a reference to Australian
                  currency;

         (i)      a reference to any legislation or statutory instrument or
                  regulation is to be construed in accordance with the Acts
                  Interpretation Act 1901 (Cth) or the equivalent State
                  legislation, as applicable, as if this document were an Act;
                  and

         (j)      words and expressions importing natural persons include
                  partnerships, bodies corporate, associations and Public
                  Authorities.

2.       CONSIDERATION

         Each Junior Creditor and each Debtor acknowledge entering into and
         incurring obligations and giving rights under this document in
         consideration of the Senior Creditor continuing to provide financial
         accommodation to or at the request of any Debtor.
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                                       5

3.       SUBORDINATION

3.1      SUBORDINATION OF DEBT

         Until the Senior Creditor has received payment of the Senior Debt in
full:

         (a)      no Debtor will:

                  (i)      except as permitted under clause 5, pay or allow
                           payment of the Subordinated Debt owed by it;

                  (ii)     permit or assist a Junior Creditor to recover the
                           Subordinated Debt owed by it; or

                  (iii)    set off the Subordinated Debt owed by it against any
                           indebtedness to the Junior Creditor to which that
                           Subordinated Debt is owed; and

         (b)      no Junior Creditor will:

                  (i)      except as permitted under clause 5, accept payment of
                           the Subordinated Debt owed to it;

                  (ii)     demand payment of, sue for or take other action to
                           cause payment or acceleration of payment of the
                           Subordinated Debt owed to it;

                  (iii)    take or be a party to any proceeding or action for
                           the purpose of the appointment of a Controller in
                           respect of or the Winding Up of any Debtor (other
                           than a Debtor being wound up in accordance with
                           clause 3.6); or

                  (iv)     exercise any right of set off or combination of
                           accounts in respect of any Debtor.

3.2      WINDING UP PROCEEDINGS

         In any proceedings for the Winding Up of a Debtor (other than a Debtor
         being wound up in accordance with clause 3.6):

         (a)      payment of the Debtor's Subordinated Debt is conditional on
                  the Senior Creditor having received payment of the Senior Debt
                  in full;

         (b)      until the Senior Creditor has received payment of the Senior
                  Debt in full no Junior Creditor will, except on request from
                  the Senior Creditor, prove for any of its Subordinated Debt
                  and will on proving immediately send a copy of its notice of
                  proof to the Senior Creditor; and

         (c)      until the Senior Creditor has received payment of the Senior
                  Debt in full, each Junior Creditor will on request from the
                  Senior Creditor prove for the whole of its Subordinated Debt
                  and will on proving send a copy of its notice of proof to the
                  Senior Creditor.
<PAGE>   8
                                       6

3.3      PROCEEDS

         If, before the Senior Creditor has received payment of the Senior Debt
         in full, a Junior Creditor receives any payment or recovers any amount
         in respect of the Subordinated Debt owed to it which is not permitted
         under clause 5 ('RECEIPT'):

         (a)      the Junior Creditor will pay an amount equal to the Receipt to
                  the Senior Creditor to be applied in reduction of the Senior
                  Debt; and

         (b)      to the extent that this does not create any Security Interest
                  which would:

                  (i)      breach any law or directive of any Public Authority;
                           or

                  (ii)     require registration in order not to be void or
                           voidable in full or against certain parties,

         the Receipt will be held for and on behalf of the Senior Creditor by
         the Junior Creditor and will be paid by the Junior Creditor in
         accordance with clause 3.3(a).

3.4      NON-RETAINABLE RECEIPT

         If any payment received by the Senior Creditor in respect of the Senior
         Debt is subsequently avoided or repaid or conceded to be or compromised
         as being void, voidable or repayable under any law relating to
         insolvency or the protection of creditors or to any other matter or
         event whatever then despite any release, discharge, acknowledgment or
         notice of revocation of this document having been given on the basis of
         any such payment, the payment will be deemed not to have been made and
         the Senior Creditor's right to receive the full amount of the Senior
         Debt under this document prior to any payment by any Debtor of the
         whole or any part of the Subordinated Debt owed by it (other than as
         permitted under clause 5) will not be prejudiced or affected.

3.5      CONSENT TO CREATION OF SUBORDINATED DEBT

         The Senior Creditor consents to the creation of Subordinated Debt of
         $1,500,000.00 between Collins Finance and Management Pty Ltd ACN 009
         996 721 and Collins Foods Group Pty Ltd ACN 009 937 900.

3.6      WINDING UP FOR THE PURPOSE OF RESTRUCTURE

         If:

         (a)      a Junior Creditor or Debtor is being Wound Up as part of the
                  Restructure (whether or not the Restructure is complete for
                  the purpose of this document); and

         (b)      the Subordinated Debt owing by or to the Junior Creditor or
                  Debtor as the case may be has been repaid without breaching
                  any provision of this document before any proceedings for the
                  Winding Up commenced; and

         (c)      no Event of Default or Potential Event of Default has
                  occurred,

         Westpac will consent to the Winding Up of the Junior Creditor or Debtor
         as the case may be, and release it from any further obligation under
         this document.
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                                       7

4.       REPRESENTATIONS AND WARRANTIES

4.1      REPRESENTATIONS AND WARRANTIES OF JUNIOR CREDITORS AND DEBTORS

         Each Junior Creditor and Debtor represents and warrants to the Senior
Creditor that:

         (a)      it is a corporation and is properly incorporated and validly
                  existing;

         (b)      it is empowered to enter into this document and to carry out
                  any transaction or obligation contemplated by this document
                  and all necessary actions have been taken to render this
                  document valid and binding on it and to enable it to carry out
                  any transaction or obligation contemplated by this document;

         (c)      the execution and performance of this document by it has not
                  and will not:

                  (i)      result in the contravention of a law or a directive
                           of any Public Authority;

                  (ii)     result in the creation of a Security Interest on or
                           the crystallisation of a charge over any asset of it;
                           or

                  (iii)    conflict with the operation or terms of any document
                           or arrangement which binds it;

         (d)      after the Restructure is complete it will not owe or have the
                  benefit of any money, debt or liability now or in the future
                  owing or remaining unpaid by or to a company which is at the
                  date of this document a member of the Sizzler International
                  Inc. group of companies unless that company is described as a
                  Debtor or Junior Creditor (as the case may be) in this
                  document

4.2      RELIANCE BY SENIOR CREDITOR

         Each Junior Creditor and Debtor acknowledges that the Senior Creditor
         has entered into this document in reliance upon the representations and
         warranties given in this clause 4.

5.       PERMITTED PAYMENTS

5.1      GENERAL PROVISIONS ABOUT PAYMENT

         So long as:

         (a)      no Senior Debt is due and unpaid;

         (b)      no Event of Default or Potential Event of Default has
                  occurred; and

         (c)      neither a Debtor nor a Junior Creditor is in breach of the
                  provisions of this document,

         each Debtor may pay, and each Junior Creditor may receive and retain
         payment of:

         (d)      such payments in respect of the Subordinated Debt owed by it
                  or to it (as the case may be) as are permitted under the
                  Negative Pledge or this document; and

         (e)      such payments as the Senior Creditor may allow by notice to
                  the relevant Debtor and relevant Junior Creditor.
<PAGE>   10
                                       8

5.2      SPECIFIC PROVISIONS ABOUT PAYMENT

         Subject to clause 5.1, the following are permitted payments which may
         be made after the date of this Deed:

         (a)      a maximum amount of A$58,000,000.00 to Sizzler International,
                  when the Restructure is complete; and

         (b)      an annual payment not exceeding A$3,900,000.00 in any twelve
                  month period commencing 1 May and ending 30 April to Sizzler
                  International for management fees and interest payments on the
                  Subordinated Debt; and

         (c)      such other payments as the Senior Creditor may allow from
                  moneys held by Collins Restaurants Management Pty Ltd ACN 093
                  912 979 in a term deposit account with Westpac to pay accrued
                  interest on Subordinated Debt and management fees to Sizzler
                  International.

6.       RESTRICTIONS ON INDEBTEDNESS

         (a)      Each Debtor undertakes that it will not become in any way
                  indebted to any Subsidiary of Sizzler International (other
                  than a Junior Creditor or a Debtor); and

         (b)      Sizzler International undertakes that it will not permit any
                  Debtor to become so indebted to any Subsidiary of Sizzler
                  International (other than a Junior Creditor),

         unless each party to this document and the relevant Subsidiary first
         executes and delivers to the Senior Creditor an Accession Deed under
         which the relevant Subsidiary agrees to be bound by this Deed as a
         Junior Creditor. Each Debtor and Junior Creditor irrevocably authorises
         each Authorised Officer of the Senior Creditor to execute any Accession
         Deed on its behalf. This authority is given as security for the
         obligations of the party giving it to the Senior Creditor.

7.       UNDERTAKINGS

7.1      DEBTOR'S UNDERTAKINGS

         Each Debtor undertakes that:

         (a)      it will not novate, vary, replace or rescind any agreement or
                  instrument under which the Debtor's obligations in respect of
                  the Subordinated Debt owed by it arise without the written
                  consent of the Senior Creditor (such consent not to be
                  unreasonably withheld);

         (b)      it will not permit any Guarantee to be given in respect of the
                  Subordinated Debt owed by it;

         (c)      it will not grant or permit to be granted a Security Interest
                  in respect of the Subordinated Debt owed by it;

         (d)      it will notify the Senior Creditor immediately if it receives
                  a demand for payment of any part of the Subordinated Debt owed
                  by it; and
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                                       9

         (e)      it will promptly provide the Senior Creditor with copies of
                  all documents evidencing the Subordinated Debt owed by it and
                  any amendments, waivers or variations to or in relation to
                  such documents.

7.2      JUNIOR CREDITOR'S UNDERTAKINGS

         Each Junior Creditor undertakes that:

         (a)      it will not novate, vary, replace or rescind any agreement or
                  instrument under which a Debtor's obligations in respect of
                  the Subordinated Debt owed to it arise without the written
                  consent of the Senior Creditor (such consent not to be
                  unreasonably withheld);

         (b)      it will not assign the Subordinated Debt owed to it or any
                  interest in it without the prior written consent of the Senior
                  Creditor;

         (c)      it will not accept the benefit of a Guarantee in respect of
                  the Subordinated Debt owed to it;

         (d)      it will not take or permit to exist a Security Interest in
                  respect of the Subordinated Debt owed to it;

         (e)      it will not waive payment of or release any Debtor or any of
                  the Debtor's Sureties from an obligation to pay the
                  Subordinated Debt owed to it or cause or permit its right to
                  be paid the Subordinated Debt owed to it to be prejudiced;

         (f)      it will exercise any voting power it has as shareholder of any
                  Debtor to ensure that the Debtor does not breach its
                  obligations under this document;

         (g)      it will use its best efforts to ensure that no Debtor breaches
                  its obligations under this document;

         (h)      it will notify the Senior Creditor of any default in any
                  agreement or instrument under which a Debtor's obligations in
                  respect of the Subordinated Debt owed to it arises;

         (i)      it will promptly provide the Senior Creditor with copies of
                  all documents evidencing the Subordinated Debt owed to it and
                  any amendments, waivers or variations to or in relation to
                  such documents; and

         (j)      if an Event of Default or Potential Event of Default occurs
                  and the Senior Creditor waives its right to require payment of
                  the Senior Debt, it must also waive any rights which it has
                  arising from the occurrence of that Event of Default or
                  Potential Event of Default or the waiver by the Senior
                  Creditor of its rights, to require payment of the Subordinated
                  Debt owed to it.

7.3      SIZZLER INTERNATIONAL'S UNDERTAKINGS

         Sizzler International undertakes that:

         (a)      it will exercise any voting power it has as shareholder of any
                  other Junior Creditor to ensure that the Junior Creditor does
                  not breach its obligations under this document;

<PAGE>   12
                                       10

         (b)      it will use its best efforts to ensure that no other Junior
                  Creditor breaches its obligations under this document.

8.       PRESERVATION OF SENIOR CREDITOR'S RIGHTS

8.1      CONTINUING SUBORDINATION

         The subordination of the Subordinated Debt on the terms of this
         document constitutes a continuing subordination and will not be
         affected by the repayment in whole or in part from time to time of the
         Senior Debt.

8.2      OBLIGATIONS NOT AFFECTED

         The subordination of the Subordinated Debt on the terms of this
         document and the obligations of each Junior Creditor under this
         document will not be abrogated, prejudiced or affected by:

         (a)      the granting of time or any other indulgence by the Senior
                  Creditor to any Debtor or to any other person;

         (b)      the taking, variation, compromise, exchange, renewal, or
                  release of or failure to perfect any rights against any asset
                  of or any rights under any Security Interest in respect of the
                  Senior Debt;

         (c)      the unenforceability, impossibility, illegality or invalidity
                  of any obligation of any Debtor to the Senior Creditor in
                  respect of any agreement or instrument under which the
                  Debtor's obligations in respect of the Senior Debt arise; or

         (d)      any other dealing, matter or thing which but for this
                  provision could or might operate to affect or discharge the
                  obligations of any Junior Creditor under this document.

9.       NO COMPETITION

         Until the Senior Creditor has received payment of the Senior Debt in
         full no Junior Creditor will by reason of any payment or performance
         under this document:

         (a)      be subrogated to any right or security which the Senior
                  Creditor may hold in respect of the Senior Debt or be entitled
                  to any right of contribution or indemnity; or

         (b)      claim, rank, prove or vote as a creditor of any Debtor or any
                  of the Debtor's Sureties in competition with the Senior
                  Creditor.

10.      OTHER SECURITY

         Each Junior Creditor waives any right it may have of requesting the
         Senior Creditor to proceed against or enforce any other Security
         Interest or to claim payment from any person before claiming the
         benefit of this document.

11.      COSTS AND EXPENSES

         Each Debtor indemnifies the Senior Creditor against and must pay on
         demand to the Senior Creditor all taxes, registration fees, costs,
         charges, expenses and liabilities
<PAGE>   13
                                       11

         (including, but not limited to, all legal costs and disbursements on a
         full indemnity basis) which the Senior Creditor may be liable to pay in
         connection with:

         (a)      the negotiation, preparation, completion, registration or
                  stamping of this document; and

         (b)      the protection, enforcement or exercise or attempted
                  enforcement or exercise of any right, power, authority or
                  remedy conferred on the Senior Creditor under this document,
                  by law or otherwise.

12.      SET OFF

         The Senior Creditor may without any demand or notice, set off and apply
         any or all indebtedness at any time owing by the Senior Creditor to any
         Junior Creditor against any debt owing by that Junior Creditor to the
         Senior Creditor whether or not that indebtedness or that debt is
         immediately due and payable.

13.      ASSIGNMENT

         The Senior Creditor may at any time assign or otherwise deal with or
         dispose of all or any of its rights or benefits under this document.

14.      POWER OF ATTORNEY

14.1     GRANT

         Each Junior Creditor for valuable consideration irrevocably appoints
         the Senior Creditor and each Authorised Officer of the Senior Creditor
         severally to be the Junior Creditor's attorneys and in the Junior
         Creditor's name (or in the name of the attorney) and on the Junior
         Creditor's behalf after the occurrence of an Event of Default or
         Potential Event of Default:

         (a)      to do anything which the Junior Creditor is obliged to do
                  under this document;

         (b)      to do anything which in the opinion of the attorney:

                  (i)      is necessary or expedient to give effect to any
                           right, power or remedy conferred on the Senior
                           Creditor; or

                  (ii)     it is necessary or expedient that the Junior Creditor
                           do,

                  under this document;

         (c)      to sign or enter into (or both) all transactions, documents,
                  agreements and instruments which in the opinion of the
                  attorney it is necessary or expedient that the Junior Creditor
                  sign or enter into under this document; and

         (d)      generally to use the Junior Creditor's name in the exercise of
                  all or any of the powers conferred on the Senior Creditor by
                  or under this document, statute, the general law or otherwise,

         and the Junior Creditor undertakes to ratify anything done by an
         attorney under this power of attorney.
<PAGE>   14
                                       12

14.2     DELEGATION BY ATTORNEY

         Any attorney may delegate its powers (including the power to delegate)
         to any person for any period and may revoke any delegation.

14.3     STATEMENT OF PURPOSE

         The power of attorney created under this clause 14 is irrevocable and
         is granted to secure the performance by each Junior Creditor of the
         Junior Creditor's obligations under this document.

15.      CERTIFICATES

         A certificate signed by an Authorised Officer of the Senior Creditor
         about a matter or about a sum payable to the Senior Creditor in
         connection with this document is admissible in proceedings and is,
         except where there is manifest error, conclusive evidence of the
         matters stated.

16.      NOTICES

16.1     WHO MAY SIGN A NOTICE

         Any notice from or demand by the Senior Creditor to or on a Debtor or
         Junior Creditor may (without limiting any other valid form of
         execution) be signed by an Authorised Officer of the Senior Creditor or
         by any solicitor acting for the Senior Creditor, whose signature may be
         handwritten or printed or otherwise reproduced by mechanical means.

16.2     HOW A NOTICE MAY BE SENT

         In addition to any method of service provided for by statute, a notice
         or demand by or on behalf of the Senior Creditor is taken to have been
         given to or made on a Debtor or Junior Creditor if:

         (a)      sent by telex or facsimile to the telex or facsimile number of
                  the Debtor or the Junior Creditor last known to the Senior
                  Creditor or, if more than one telex or facsimile number is
                  known to the Senior Creditor, to any such telex or facsimile
                  number;

         (b)      left for the Debtor or the Junior Creditor or sent by mail
                  (and by airmail if to an address outside Australia) to the
                  Debtor or the Junior Creditor at:

                  (i)      any address of the Debtor or the Junior Creditor set
                           out in this document;

                  (ii)     the Debtor or the Junior Creditor's usual abode or
                           place of business last known to the Senior Creditor;

                  (iii)    the Debtor or the Junior Creditor's registered
                           office; or

                  (iv)     any premises owned or occupied by the Debtor or the
                           Junior Creditor.

16.3     VALIDITY OF NOTICE

         Service under clause 16.2 is valid even if:

<PAGE>   15
                                       13

         (a)      the Winding Up of the relevant Debtor or Junior Creditor has
                  occurred or the Debtor or Junior Creditor is absent from the
                  place at or to which the notice or demand is left, delivered
                  or sent; or

         (b)      where the notice or demand is sent by post or otherwise, it is
                  returned unclaimed.

16.4     RECEIPT OF NOTICE

         Any notice or demand is taken to have been received by the relevant
         Debtor or Junior Creditor:

         (a)      if left or delivered personally, on the same day;

         (b)      if sent by post to an address in Australia, on the second
                  Business Day after the date of posting;

         (c)      if sent by post to an address outside Australia, on the fourth
                  Business Day after the date of posting;

         (d)      if sent by telex, on receipt of the Debtor or the Junior
                  Creditor's answerback code; and

         (e)      if sent by facsimile, on production of a transmission report
                  by the sender's facsimile machine indicating that the notice
                  or demand has been sent to the relevant number.

17.      SEVERABILITY

17.1     PREFERRED CONSTRUCTION

         A construction of this document which results in all provisions being
         enforceable is to be preferred to a construction which does not so
         result.

17.2     SEVERANCE

         If, despite the application of clause 17.1 a provision of this document
         is illegal or unenforceable:

         (a)      if the provision would not be illegal or unenforceable if a
                  word or words were omitted, that word or those words will be
                  severed; and

         (b)      in any other case, the whole provision will be severed,

         and the remainder of this document will continue to have full force and
         effect.

18.      GOVERNING LAW AND JURISDICTION

         This document is governed by the law of Queensland and each Debtor and
         Junior Creditor irrevocably and unconditionally submits to the
         non-exclusive jurisdiction of the courts of Queensland.

19.      AGENT FOR SERVICE OF PROCESS

         Each Debtor and Junior Creditor having its registered office outside
Queensland:
<PAGE>   16
                                       14

         (a)      irrevocably appoints Collins Restaurants Management Pty Ltd
                  ACN 093 912 979 ('CRM') as its agent for service of process
                  relating to any proceedings before the courts and appellate
                  courts of the State of Queensland in connection with this
                  document;

         (b)      agrees that failure by CRM to notify it of the process will
                  not invalidate the proceedings concerned; and

         (c)      agrees that nothing shall affect the right to serve process in
                  any other manner permitted by law.

20.      ATTORNEYS

         Each attorney executing this document states that he or she has no
         notice of the revocation of his or her power of attorney.

21.      NOVATION AND TERMINATION OF EARLIER DEED

         (a)      The parties to this document, other than Sizzler Asia
                  Holdings, Inc. ('SAH') and Collins Restaurants Management Pty
                  Ltd ACN 093 912 979 ('CRM') are parties with Collins
                  Properties, Inc to a Subordination Deed dated 24 September
                  1997 (the 'earlier deed').

         (b)      By signing this document the parties agree:

                  (i)     that SAH and CRM and each of the parties to the
                          earlier deed shall assume obligations towards each
                          other and acquire rights against each other as though
                          SAH and CRM were originally named in the earlier deed
                          as a Debtor (as defined in the earlier deed); and

                  (ii)    SAH and CRM shall be deemed to be a party to the
                          earlier deed as a Debtor (as defined in the earlier
                          deed).

         (c)      To the extent that there is any inconsistency (other than
                  under this clause 21) between the term of this deed and the
                  earlier deed, the earlier deed prevails, subject to clause
                  21(b) of this deed, until the Restructure is complete. This
                  deed terminates the earlier deed (except in respect of any
                  liability arising under it prior to termination) from the time
                  that the Restructure is complete.

<PAGE>   17
                                       15

EXECUTED as a deed.

THE COMMON SEAL of COLLINS FOODS             )
GROUP PTY LTD ACN 009 937 900 is affixed     )
in accordance with its constituent documents )
in the presence of                           )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of COLLINS FOODS            )
INTERNATIONAL PTY LTD ARBN 009 980 250 is   )
affixed in accordance with its constituent  )
documents in the presence of                )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of COLLINS INTERNATIONAL    )
INC is affixed in accordance with its       )
constituent documents in the presence of    )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of COLLINS RESTAURANTS      )
QUEENSLAND PTY LTD ACN 009 988 381 is       )
affixed in accordance with its constituent  )
documents in the presence of                )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

<PAGE>   18
                                       16

THE COMMON SEAL of SIZZLER NEW ZEALAND      )
LIMITED is affixed in accordance with its   )
constituent documents in the presence of    )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of SIZZLER SOUTH PACIFIC    )
PTY LTD ARBN 010 713 952 is affixed in      )
accordance with its constituent documents   )
in the presence of                          )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of SIZZLER SOUTH-EAST ASIA  )
INC is affixed in accordance with its       )
constituent documents in the presence of    )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of SIZZLER RESTAURANTS      )
GROUP PTY LTD ACN 010 102 388 is affixed    )
in accordance with its constituent          )
documents in the presence of                )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name
<PAGE>   19
                                       17

THE COMMON SEAL of SIZZLER RESTAURANT       )
SERVICES, INC is affixed in accordance with )
its constituent documents in the presence   )
of

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL OF SIZZLER ASIA HOLDINGS,  )
INC is affixed in accordance with its      )
constituent documents in the presence of   )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL OF COLLINS RESTAURANTS      )
MANAGEMENT PTY LTD ACN 093 912 979 is       )
affixed in accordance with its              )
constituent documents in the presence of    )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of SIZZLER INTERNATIONAL,   )
INC. is affixed in accordance with its      )
constituent documents in the presence of    )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name
<PAGE>   20
                                       18

THE COMMON SEAL of SIZZLER INTERNATIONAL    )
MARKS INC is affixed in accordance          )
with its constituent documents in the       )
presence of                                 )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of RESTAURANT CONCEPTS OF   )
AUSTRALIA, PTY LTD is affixed in accordance )
with its constituent documents in the       )
presence of                                 )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of SIZZLER FRANCHISE        )
DEVELOPMENT, LTD is affixed in accordance   )
with its constituent documents in the       )
presence of                                 )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of FURNACE CONCEPTS         )
INTERNATIONAL, INC is affixed in accordance )
with its constituent documents in the       )
presence of                                 )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

<PAGE>   21
                                       19

THE COMMON SEAL of FURNACE CONCEPTS         )
AUSTRALIA CORP  ARBN 070 065 468 is affixed )
in accordance with its constituent          )
documents in the presence of                )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of RESTAURANT CONCEPTS      )
INTERNATIONAL INC is affixed in accordance  )
with its constituent documents in the       )
presence of                                 )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of SIZZLER AUSTRALIA PTY    )
LTD ACN 010 060 876 is affixed in           )
accordance with its constituent documents   )
in the presence of                          )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

<PAGE>   22

                                       20

THE COMMON SEAL of COLLINS PROPERTY         )
DEVELOPMENT PTY LTD ACN 010 539 616 is      )
affixed in accordance with its constituent  )
documents in the presence of                )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of COLLINS FINANCE AND      )
MANAGEMENT PTY LTD ACN 009 996 721 is       )
affixed in accordance with its constituent  )
documents in the presence of                )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

THE COMMON SEAL of COLLINS FOODS AUSTRALIA )
PTY LTD ACN 009 914 103 is affixed in      )
accordance with its constituent documents  )
in the presence of                         )

--------------------------------------------  ----------------------------------
Authorised Officer/Director                   Authorised Officer/Director

--------------------------------------------  ----------------------------------
Please Print Full Name                        Please Print Full Name

<PAGE>   23
                                       21

SIGNED for and on behalf of WESTPAC BANKING  ) Westpac Banking Corporation by
CORPORATION ARBN 007 457 141 by its duly     ) its duly constituted Attorney:
constituted Attorney                         )
                                             )
who certifies that he/she has no notice of   )..................................
revocation of the powers granted pursuant    )
to  Power of Attorney No.                    )
in the presence of                           )

 ............................................
A Justice of the Peace
<PAGE>   24
                                       22

                                  ANNEXURE 'A'

                                 ACCESSION DEED

DEED dated                                                                  2000

BETWEEN                   [NAME] Incorporated in [#] of [#] (the 'New Junior
                          Creditor')

AND                       WESTPAC BANKING CORPORATION ARBN 007 457 141 of 260
                          Queen Street, Brisbane ('Senior Creditor') for itself
                          and on behalf of all other parties to the
                          Subordination Deed

RECITAL

A.       The Senior Creditor, Sizzler International, Inc and others entered into
         a Subordination Deed dated          2000 ('Subordination Deed').

B.       The New Junior Creditor proposes to become a Junior Creditor under the
         Subordination Deed.

AGREEMENT

1.       INTERPRETATION

1.1      Definitions

         Expressions defined in the Subordination Deed have the same meaning in
this document.

1.2      Construction

         Clause 1.2 of the Subordination Deed applies to this document as if
stated in it.

2.       Novation

         With effect from the date of this document:

         (d)      the New Junior Creditor and each of the parties to the
                  Subordination Deed shall assume obligations towards each other
                  and acquire rights against each other as though the New Junior
                  Creditor were originally named in the Subordination Deed as a
                  Junior Creditor; and
<PAGE>   25
                                       23

         (e)      the New Junior Creditor shall be deemed a party to the
                  Subordination Deed as a Junior Creditor.

3.       Notices

         For the purposes of the Subordination Deed, the address for
         correspondence of the New Junior Creditor is the address set out in the
         Schedule.

4.       Counterparts

         This document may be executed in any number of counterparts. All of
         such counterparts taken together shall be deemed to constitute the one
         instrument.

5.       Governing Law and Jurisdiction

         This document is governed by the law of Queensland and each party to it
         irrevocably and unconditionally submits to the non-exclusive
         jurisdiction of the Courts of Queensland.

6.       Agent for Service of Process

         Each of the Debtors, Junior Creditors and New Junior Creditor having
         its registered office outside Queensland:

         (f)      irrevocably appoints Collins Restaurants Management Pty Ltd
                  ACN 093 912 979 ('CRM') as its agent for service of process
                  relating to any proceedings before the courts and appellate
                  courts of the State of Queensland in connection with this
                  document;

         (g)      agrees that failure by CRM to notify it of the process will
                  not invalidate the proceedings concerned; and

         (h)      agrees that nothing shall affect the right to serve process in
                  any other manner permitted by law.

7.       Attorneys

         Each attorney executing this document states that he or she has no
         notice of the revocation of his or her power of attorney.

<PAGE>   26
                                       24

                                    SCHEDULE

                        [ADDRESS OF NEW JUNIOR CREDITOR]

EXECUTED as a deed.

NEW JUNIOR CREDITOR:

SIGNED SEALED and DELIVERED for and on      )
behalf of [#] by its attorney in the        )
presence of                                 )

--------------------------------------------  ----------------------------------
Signature of witness                          Attorney

--------------------------------------------
Name of witness (print)

OTHER PARTIES:

SIGNED SEALED and DELIVERED for and on      )
behalf of WESTPAC BANKING CORPORATION for   )
itself and on behalf of the other parties   )
to the Subordination Deed by                )

 its duly constituted attorney in the
presence of:

--------------------------------------------  ----------------------------------
Signature of witness                          Attorney

--------------------------------------------
Name of witness (print)<PAGE>
                                                                     Exhibit 4.2

                               RESTATED  BYLAWS

                                      OF

                             BRIO TECHNOLOGY, INC.

                           (a Delaware corporation)
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                         Page
                                                                                                         ----
<S>                                                                                                        <C>
ARTICLE I - CORPORATE OFFICES............................................................................   1

     1.1  Registered Office..............................................................................   1
     1.2  Other Offices..................................................................................   1

ARTICLE II - MEETINGS OF STOCKHOLDERS....................................................................   1

     2.1  Place Of Meetings..............................................................................   1
     2.2  Annual Meeting.................................................................................   1
     2.3  Special Meeting................................................................................   1
     2.4  Notice Of Stockholders' Meetings...............................................................   2
     2.5  Advance Notice of Nominees.....................................................................   2
     2.6  Advance Notice Of Stockholder Business.........................................................   3
     2.7  Manner Of Giving Notice; Affidavit Of Notice...................................................   4
     2.8  Quorum.........................................................................................   4
     2.9  Adjourned Meeting; Notice......................................................................   4
     2.10 Conduct Of Business............................................................................   5
     2.11 Voting.........................................................................................   5
     2.12 Waiver Of Notice...............................................................................   5
     2.13 Stockholder Action By Written Consent Without A Meeting........................................   5
     2.14 Record Date For Stockholder Notice; Voting; Giving Consents....................................   6
     2.15 Proxies........................................................................................   7

ARTICLE III - DIRECTORS..................................................................................   7

     3.1  Powers.........................................................................................   7
     3.2  Number Of Directors............................................................................   7
     3.3  Election, Qualification And Term Of Office Of Directors........................................   7
     3.4  Place Of Meetings; Meetings By Telephone.......................................................   9
     3.5  Regular Meetings...............................................................................   9
     3.6  Special Meetings; Notice.......................................................................   9
     3.7  Quorum.........................................................................................   9
     3.8  Waiver Of Notice...............................................................................  10
     3.9  Board Action By Written Consent Without A Meeting..............................................  10
     3.10 Fees And Compensation Of Directors.............................................................  10
     3.11 Approval Of Loans To Officers..................................................................  10
     3.12 Removal Of Directors...........................................................................  11
     3.13 Chairman Of The Board Of Directors.............................................................  11

ARTICLE IV - COMMITTEES..................................................................................  11

     4.1  Committees Of Directors........................................................................  11
     4.2  Committee Minutes..............................................................................  11
     4.3  Meetings And Action Of Committees..............................................................  12
</TABLE>
<PAGE>

                              TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                              Page
                                                                                              ----
<S>                                                                                           <C>
ARTICLE  V - OFFICERS.........................................................................  12

     5.1  Officers............................................................................  12
     5.2  Appointment Of Officers.............................................................  12
     5.3  Subordinate Officers................................................................  12
     5.4  Removal And Resignation Of Officers.................................................  13
     5.5  Vacancies In Offices................................................................  13
     5.6  Chief Executive Officer.............................................................  13
     5.7  President...........................................................................  13
     5.8  Vice Presidents.....................................................................  13
     5.9  Secretary...........................................................................  14
     5.10 Chief Financial Officer.............................................................  14
     5.11 Representation Of Shares Of Other Corporations......................................  14
     5.12 Authority And Duties Of Officers....................................................  15

ARTICLE VI - INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES, AND OTHER AGENTS..............  15

     6.1  Indemnification Of Directors And Officers...........................................  15
     6.2  Indemnification Of Others...........................................................  15
     6.3  Payment Of Expenses In Advance......................................................  16
     6.4  Indemnity Not Exclusive.............................................................  16
     6.5  Insurance...........................................................................  16
     6.6  Conflicts...........................................................................  16

ARTICLE VII - RECORDS AND REPORTS.............................................................  17

     7.1  Maintenance And Inspection Of Records...............................................  17
     7.2  Inspection By Directors.............................................................  17
     7.3  Annual Statement To Stockholders....................................................  17

ARTICLE VIII - GENERAL MATTERS................................................................  17

     8.1  Checks..............................................................................  17
     8.2  Execution Of Corporate Contracts And Instruments....................................  18
     8.3  Stock Certificates; Partly Paid Shares..............................................  18
     8.4  Special Designation On Certificates.................................................  18
     8.5  Lost Certificates...................................................................  19
     8.6  Construction; Definitions...........................................................  19
     8.7  Dividends...........................................................................  19
     8.8  Fiscal Year.........................................................................  19
     8.9  Seal................................................................................  20
     8.10 Transfer Of Stock...................................................................  20
</TABLE>

                                      -3-
<PAGE>

<TABLE>
                                                                                              Page
                                                                                              ----
     <S>                                                                                      <C>
     8.11 Stock Transfer Agreements...........................................................  20
     8.12 Registered Stockholders.............................................................  20

ARTICLE IX - AMENDMENTS.......................................................................  20
</TABLE>

                                      -4-
<PAGE>

                                RESTATED BYLAWS

                                      OF

                             BRIO TECHNOLOGY, INC.

                           (a Delaware corporation)

                                   ARTICLE I

                               CORPORATE OFFICES
                               -----------------

     1.1  Registered Office.
          -----------------

          The registered office of the corporation shall be in the City of
Dover, County of New Castle, State of Delaware. The name of the registered agent
of the corporation at such location is CT Corporation System.

     1.2  Other Offices.
          -------------

          The Board of Directors may at any time establish other offices at any
place or places where the corporation is qualified to do business.

                                  ARTICLE II

                           MEETINGS OF STOCKHOLDERS
                           ------------------------

     2.1  Place Of Meetings.
          -----------------

          Meetings of stockholders shall be held at any place, within or outside
the State of Delaware, designated by the Board of Directors. In the absence of
any such designation, stockholders' meetings shall be held at the registered
office of the corporation.

     2.2  Annual Meeting.
          --------------

          The annual meeting of stockholders shall be held on such date, time
and place, either within or without the State of Delaware, as may be designated
by resolution of the Board of Directors each year. At the meeting, directors
shall be elected and any other proper business may be transacted.

     2.3  Special Meeting.
          ---------------

          A special meeting of the stockholders may be called at any time by the
Board of Directors, the chairman of the board, the president or by one or more
stockholders holding shares in the aggregate entitled to cast not less than ten
percent of the votes at that meeting.

          If a special meeting is called by any person or persons other than the
Board of Directors, the president or the chairman of the board, the request
shall be in writing, specifying
<PAGE>

the time of such meeting and the general nature of the business proposed to be
transacted, and shall be delivered personally or sent by registered mail or by
telegraphic or other facsimile transmission to the chairman of the board, the
president, any vice president, or the secretary of the corporation. No business
may be transacted at such special meeting otherwise than specified in such
notice. The officer receiving the request shall cause notice to be promptly
given to the stockholders entitled to vote, in accordance with the provisions of
Sections 2.4 and 2.5 of this Article II, that a meeting will be held at the time
requested by the person or persons calling the meeting, not less than thirty-
five (35) nor more than sixty (60) days after the receipt of the request. If the
notice is not given within twenty (20) days after the receipt of the request,
the person or persons requesting the meeting may give the notice. Nothing
contained in this paragraph of this Section 2.3 shall be construed as limiting,
fixing, or affecting the time when a meeting of stockholders called by action of
the Board of Directors may be held.

     2.4  Notice Of Stockholders' Meetings.
          --------------------------------

          All notices of meetings with stockholders shall be in writing and
shall be sent or otherwise given in accordance with Section 2.7 of these
Restated Bylaws not less than ten (10) nor more than sixty (60) days before the
date of the meeting to each stockholder entitled to vote at such meeting. The
notice shall specify the place, date, and hour of the meeting, and, in the case
of a special meeting, the purpose or purposes for which the meeting is called.

     2.5  Advance Notice of Nominees.
          ---------------------------

          Only persons who are nominated in accordance with the procedures set
forth in this Section 2.5 shall be eligible for election as directors.
Nominations of persons for election to the Board of Directors of the corporation
may be made at a meeting of stockholders by or at the direction of the Board of
Directors or by any stockholder of the corporation entitled to vote for the
election of directors at the meeting who complies with the notice procedures set
forth in this Section 2.5. Such nominations, other than those made by or at the
direction of the Board of Directors, shall be made pursuant to timely notice in
writing to the secretary of the corporation.

          To be timely, a stockholder's notice shall be delivered to or mailed
and received at the principal executive offices of the corporation (a) in the
case of an annual meeting, not less than sixty (60) days nor more than ninety
(90) days prior to the first anniversary of the preceding year's annual meeting;
provided, however, that in the event that the date of the annual meeting is
changed by more than thirty (30) days from such anniversary date, notice by the
stockholder to be timely must be so received not later than the close of
business on the tenth (10th) day following the earlier of the day on which such
notice of the date of the meeting was mailed or such public disclosure was made;
and (b) in the case of a special meeting at which Directors are to be elected,
not later than the close of business on the tenth (10th) day following the
earlier of the day on which notice of the date of the meeting was mailed or
public disclosure was made. Such stockholder's notice shall set forth (a) as to
each person whom the stockholder proposes to nominate for election or re-
election as a Director (i) the name, age, business address and residence address
of such person, (ii) the principal occupation or employment of such person,
(iii) the class and number of shares of the corporation which are beneficially
owned by such

                                      -2-
<PAGE>

person and (iv) any other information relating to such person that is required
to be disclosed in solicitations of proxies for election of Directors, or is
otherwise required, in each case pursuant to Regulation 14A under the Securities
Exchange Act of 1934, as amended (including, without limitation, such person's
written consent to being named in the proxy statement as a nominee and to
serving as a director if elected); and (b) as to the stockholder giving the
notice (i) the name and address, as they appear on the corporation's books, of
such stockholder, (ii) the class and number of shares of the corporation which
are beneficially owned by such stockholder and also which are owned of record by
such stockholder and (iii) a description of all arrangements or understandings
between such stockholder and each nominee and any other person or persons
(naming such person or persons) relating to the nomination. At the request of
the Board of Directors any person nominated by the Board of Directors for
election as a director shall furnish to the secretary of the corporation that
information required to be set forth in a stockholder's notice of nomination
which pertains to the nominee.

          No person shall be eligible for election as a director of the
corporation unless nominated in accordance with the procedures set forth in this
Section 2.5. The Chairman of the meeting shall, if the facts warrant, determine
and declare to the meeting that a nomination was not made in accordance with the
procedures prescribed by the Restated Bylaws, and if he or she should so
determine, he or she shall so declare to the meeting and the defective
nomination shall be disregarded. Notwithstanding the foregoing provisions of
this Bylaw, a stockholder shall also comply with all applicable requirements of
the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder with respect to the matters set forth in this Bylaw.

     2.6  Advance Notice Of Stockholder Business.
          --------------------------------------

          At an annual meeting of the stockholders, only such business shall be
conducted as shall have been properly brought before the annual meeting. To be
properly brought before an annual meeting, business must be: (a) pursuant to the
corporation's notice of meeting (or any supplement thereto), (b) by or at the
direction of the Board of Directors, or (c) by any stockholder of the
corporation who is a stockholder of record at the time of giving of the notice
provided for in this Section 2.6, who shall be entitled to vote at such meeting
and who complies with the notice procedures set forth in this Section 2.6.
Business to be brought before an annual meeting by a stockholder shall not be
considered properly brought if the stockholder has not given timely notice
thereof in writing to the secretary of the corporation.

          To be timely, a stockholder's notice must be delivered to or mailed
and received at the principal executive offices of the corporation not less than
sixty (60) nor more than ninety (90) days prior to the first anniversary of the
preceding year's annual meeting; provided, however, that in the event that the
date of the meeting is changed by more than thirty (30) days from such
anniversary date, notice by the stockholder to be timely must be so received not
later than the close of business on the tenth (10th) day following the earlier
of the day on which such notice of the date of the meeting was mailed or such
public disclosure was made. A stockholder's notice to the secretary shall set
forth as to each matter the stockholder proposes to bring before the meeting:
(i) a brief description of the business desired to be brought before the meeting
and the reasons for conducting such business at the meeting, (ii) the name and
address,

                                      -3-
<PAGE>

as they appear on the corporation's books, of the stockholder proposing such
business, and the name and address of the beneficial owner, if any, on whose
behalf the proposal is made, (iii) the class and number of shares of the
corporation, which are owned by the stockholder of record and by the beneficial
owner, if any, on whose behalf the proposal is made, (iv) any material interest
of the stockholder of record and the beneficial owner, if any, on whose behalf
the proposal is made in such business, and (v) any other information that is
required by law to be provided by the stockholder in his or her capacity as a
proponent of a stockholder proposal.

     Notwithstanding anything in these Restated Bylaws to the contrary, no
business shall be conducted at an annual meeting except in accordance with the
procedures set forth in this Section 2.6.  The chairman of the meeting shall, if
the facts warrant, determine and declare at the meeting that business was not
properly brought before the meeting in accordance with the provisions of this
Section, and, if he or she should so determine, he or she shall so declare at
the meeting that any such business not properly brought before the meeting shall
not be transacted.  Notwithstanding the foregoing provisions of this Bylaw, a
stockholder shall also comply with all applicable requirements of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder with
respect to the matters set forth in this Bylaw.

     2.7  Manner Of Giving Notice; Affidavit Of Notice.
          --------------------------------------------

          Written notice of any meeting of stockholders, if mailed, is given
when deposited in the United States mail, postage prepaid, directed to the
stockholder at his address as it appears on the records of the corporation. An
affidavit of the secretary or an assistant secretary or of the transfer agent of
the corporation that the notice has been given shall, in the absence of fraud,
be prima facie evidence of the facts stated therein.

     2.8  Quorum.
          ------

          The holders of a majority of the stock issued and outstanding and
entitled to vote thereat, present in person or represented by proxy, shall
constitute a quorum at all meetings of the stockholders for the transaction of
business except as otherwise provided by statute or by the certificate of
incorporation. If, however, such quorum is not present or represented at any
meeting of the stockholders, then either (a) the chairman of the meeting or (b)
the stockholders entitled to vote thereat, present in person or represented by
proxy, shall have power to adjourn the meeting from time to time, without notice
other than announcement at the meeting, until a quorum is present or
represented. At such adjourned meeting at which a quorum is present or
represented, any business may be transacted that might have been transacted at
the meeting as originally noticed.

     2.9  Adjourned Meeting; Notice.
          -------------------------

          When a meeting is adjourned to another time or place, unless these
Restated Bylaws otherwise require, notice need not be given of the adjourned
meeting if the time and place thereof are announced at the meeting at which the
adjournment is taken. At the adjourned meeting the corporation may transact any
business that might have been transacted at the original meeting. If the
adjournment is for more than thirty (30) days, or if after the adjournment a new

                                      -4-
<PAGE>

record date is fixed for the adjourned meeting, a notice of the adjourned
meeting shall be given to each stockholder of record entitled to vote at the
meeting.

     2.10 Conduct Of Business.
          -------------------

          The chairman of any meeting of stockholders shall determine the order
of business and the procedure at the meeting, including the manner of voting and
the conduct of business.

     2.11 Voting.
          ------

          The stockholders entitled to vote at any meeting of stockholders shall
be determined in accordance with the provisions of Section 2.14 of these
Restated Bylaws, subject to the provisions of Sections 217 and 218 of the
General Corporation Law of Delaware (relating to voting rights of fiduciaries,
pledgors and joint owners of stock and to voting trusts and other voting
agreements).

          Except as may be otherwise provided in the certificate of
incorporation, each stockholder shall be entitled to one vote for each share of
capital stock held by such stockholder.

     2.12 Waiver Of Notice.
          ----------------

          Whenever notice is required to be given under any provision of the
General Corporation Law of Delaware or of the certificate of incorporation or
these Restated Bylaws, a written waiver thereof, signed by the person entitled
to notice, whether before or after the time stated therein, shall be deemed
equivalent to notice. Attendance of a person at a meeting shall constitute a
waiver of notice of such meeting, except when the person attends a meeting for
the express purpose of objecting, at the beginning of the meeting, to the
transaction of any business because the meeting is not lawfully called or
convened. Neither the business to be transacted at, nor the purpose of, any
regular or special meeting of the stockholders need be specified in any written
waiver of notice unless so required by the certificate of incorporation or these
Restated Bylaws.

     2.13 Stockholder Action By Written Consent Without A Meeting.
          -------------------------------------------------------

          Unless otherwise provided in the certificate of incorporation, any
action required to be taken at any annual or special meeting of stockholders of
the corporation, or any action that may be taken at any annual or special
meeting of such stockholders, may be taken without a meeting, without prior
notice, and without a vote if a consent in writing, setting forth the action so
taken, is signed by the holders of outstanding stock having not less than the
minimum number of votes that would be necessary to authorize or take such action
at a meeting at which all shares entitled to vote thereon were present and
voted.

     Prompt notice of the taking of the corporate action without a meeting by
less than unanimous written consent shall be given to those stockholders who
have not consented in writing. If the action which is consented to is such as
would have required the filing of a

                                      -5-
<PAGE>

certificate under any section of the General Corporation Law of Delaware if such
action had been voted on by stockholders at a meeting thereof, then the
certificate filed under such section shall state, in lieu of any statement
required by such section concerning any vote of stockholders, that written
notice and written consent have been given as provided in Section 228 of the
General Corporation Law of Delaware.

     Notwithstanding the foregoing, immediately upon the closing of the
Company's first public offering pursuant to an effective registration statement
under the Securities Act of 1933, as amended, covering any of the Corporation's
securities (as that term is defined under the Securities Act of 1933, as then in
effect) no action shall be taken by the stockholders of the corporation except
at an annual or special meeting of the stockholders called in accordance with
the Restated Bylaws and no action shall be taken by the stockholders by written
consent.

     2.14 Record Date For Stockholder Notice; Voting; Giving Consents.
          -----------------------------------------------------------

          In order that the corporation may determine the stockholders entitled
to notice of or to vote at any meeting of stockholders or any adjournment
thereof, or entitled to express consent to corporate action in writing without a
meeting, or entitled to receive payment of any dividend or other distribution or
allotment of any rights, or entitled to exercise any rights in respect of any
change, conversion or exchange of stock or for the purpose of any other lawful
action, the Board of Directors may fix, in advance, a record date, which shall
not be more than sixty (60) nor less than ten (10) days before the date of such
meeting, nor more than sixty (60) days prior to any other action.

          If the Board of Directors does not so fix a record date:

          (a) The record date for determining stockholders entitled to notice of
or to vote at a meeting of stockholders shall be at the close of business on the
day next preceding the day on which notice is given, or, if notice is waived, at
the close of business on the day next preceding the day on which the meeting is
held.

          (b) The record date for determining stockholders entitled to consent
to corporate action in writing without a meeting, when no prior action by the
Board of Directors is necessary, shall be the day on which the first written
consent is delivered to the corporation.

          (c) The record date for determining stockholders for any other purpose
shall be at the close of business on the day on which the Board of Directors
adopts the resolution relating thereto.

          A determination of stockholders of record entitled to notice of or to
vote at a meeting of stockholders shall apply to any adjournment of the meeting;
provided, however, that the Board of Directors may fix a new record date for the
adjourned meeting.

                                      -6-
<PAGE>

     2.15 Proxies.
          -------

          Each stockholder entitled to vote at a meeting of stockholders or to
express consent or dissent to corporate action in writing without a meeting may
authorize another person or persons to act for such stockholder by a written
proxy, signed by the stockholder and filed with the secretary of the
corporation, but no such proxy shall be voted or acted upon after three (3)
years from its date, unless the proxy provides for a longer period. A proxy
shall be deemed signed if the stockholder's name is placed on the proxy (whether
by manual signature, typewriting, telegraphic transmission or otherwise) by the
stockholder or the stockholder's attorney-in-fact. The revocability of a proxy
that states on its face that it is irrevocable shall be governed by the
provisions of Section 212(e) of the General Corporation Law of Delaware.

                                  ARTICLE III

                                   DIRECTORS
                                   ---------

     3.1  Powers.
          ------

          Subject to the provisions of the General Corporation Law of Delaware
and any limitations in the certificate of incorporation or these Restated Bylaws
relating to action required to be approved by the stockholders or by the
outstanding shares, the business and affairs of the corporation shall be managed
and all corporate powers shall be exercised by or under the direction of the
Board of Directors.

     3.2  Number Of Directors.
          -------------------

          Upon the adoption of these Restated Bylaws, the number of directors
constituting the entire Board of Directors shall be six (6). Thereafter, this
number may be changed by a resolution of the Board of Directors or of the
stockholders, subject to Section 3.3 of these Restated Bylaws. No reduction of
the authorized number of directors shall have the effect of removing any
director before such director's term of office expires.

     3.3  Election, Qualification And Term Of Office Of Directors.
          -------------------------------------------------------

          (a) The Board of Directors of the corporation shall divide the
directors into two classes, as nearly equal in number as possible. The term of
office of the first class shall expire at the 1999 annual meeting of
stockholders or any special meeting in lieu thereof (or the next consecutive
annual meeting of stockholders when the corporation is Exempt from Section 2115
of the California Corporations Code), and the term of office of the second class
shall expire at the 2000 annual meeting of stockholders or any special meeting
in lieu thereof (or the next consecutive annual meeting of stockholders when the
corporation is Exempt from Section 2115 of the California Corporations Code). At
each annual meeting of stockholders or special meeting in lieu thereof following
such initial classification, directors elected to succeed those directors whose
terms expire shall be elected for a term of office to expire at the second
succeeding annual meeting of stockholders or special meeting in lieu thereof
after their election and until their successors are duly elected and qualified.
Directors need not be stockholders unless so required

                                      -7-
<PAGE>

by the certificate of incorporation or these Restated Bylaws, wherein other
qualifications for Directors may be prescribed.

          (b) Subject to the rights of the holders of any series of Preferred
Stock then outstanding, newly created directorships resulting from any increase
in the authorized number of directors or any vacancies in the Board of Directors
resulting from death, resignation, retirement, disqualification, removal from
office or other cause may be filled only by a majority vote of the directors
then in office even though less than a quorum, or by a sole remaining director.
In the event of any increase or decrease in the authorized number of directors,
(i) each director then serving as such shall nevertheless continue as a director
of the class of which he or she is a member until the expiration of his or her
current term or his or her prior death, retirement, removal or resignation and
(ii) the newly created or eliminated directorships resulting from such increase
or decrease shall if reasonably possible be apportioned by the Board of
Directors among the two classes of directors so as to ensure that no one class
has more than one director more than any other class. To the extent reasonably
possible, consistent with the foregoing rule, any newly created directorships
shall be added to those classes whose terms of office are to expire at the
latest dates following such allocation and newly eliminated directorships shall
be subtracted from those classes whose terms of office are to expire at the
earliest dates following such allocation, unless otherwise provided for from
time to time by resolution adopted by a majority of the directors then in
office, although less than a quorum. In the event of a vacancy in the Board of
Directors, the remaining directors, except as otherwise provided by law, may
exercise the powers of the full Board of Directors until the vacancy is filled.
Notwithstanding the foregoing, each director shall serve until his or her
successor is duly elected and qualified or until his or her death, resignation,
or removal. No decrease in the number of directors constituting the Board of
Directors shall shorten the term of any incumbent director.

          (c) For the purposes of this Section 3.3, "Exempt from Section 2115 of
the California Corporation Code" as used in these Restated Bylaws shall mean
such time when the corporation has outstanding securities listed on the New York
Stock Exchange or the American Stock Exchange or outstanding securities
designated as qualified for trading as a national market security on the
National Association of Securities Dealers Automatic Quotation System (or such
successor national market system) with at least 800 holders of its equity
securities. For the management of the business and for the conduct of the
affairs of the corporation, and in further definition, limitation and regulation
of the powers of the corporation, its directors and its stockholders or any
class thereof, as the case may be, it is further provided that, effective on the
record date of the first annual meeting of stockholders when the Company is
Exempt from Section 2115 of the California Corporations Code:

          (d) At the next consecutive annual or special meeting of stockholders
when the corporation is Exempt from Section 2115 of the California Corporations
Code, there shall be no right with respect to shares of stock of the corporation
to cumulate votes in the election of directors.

          (e) Election of Directors need not be by written ballot.

                                      -8-
<PAGE>

     3.4  Place Of Meetings; Meetings By Telephone.
          ----------------------------------------

          The Board of Directors of the corporation may hold meetings, both
regular and special, either within or outside the State of Delaware.

          Unless otherwise restricted by the certificate of incorporation or
these Restated Bylaws, members of the Board of Directors, or any committee
designated by the Board of Directors, may participate in a meeting of the Board
of Directors, or any committee, by means of conference telephone or similar
communications equipment by means of which all persons participating in the
meeting can hear each other, and such participation in a meeting shall
constitute presence in person at the meeting.

     3.5  Regular Meetings.
          ----------------

          Regular meetings of the Board of Directors may be held without notice
at such time and at such place as shall from time to time be determined by the
board.

     3.6  Special Meetings; Notice.
          ------------------------

          Special meetings of the Board of Directors for any purpose or purposes
may be called at any time by the chairman of the board, the president, any vice
president, the secretary or any two directors.

          Notice of the time and place of special meetings shall be delivered
personally or by telephone to each director or sent by first-class mail or
telegram, charges prepaid, addressed to each director at that director's address
as it is shown on the records of the corporation. If the notice is mailed, it
shall be deposited in the United States mail at least four (4) days before the
time of the holding of the meeting. If the notice is delivered personally or by
telephone or by telegram, it shall be delivered personally or by telephone or to
the telegraph company at least forty-eight (48) hours before the time of the
holding of the meeting. Any oral notice given personally or by telephone may be
communicated either to the director or to a person at the office of the director
who the person giving the notice has reason to believe will promptly communicate
it to the director. The notice need not specify the purpose or the place of the
meeting, if the meeting is to be held at the principal executive office of the
corporation.

     3.7  Quorum.
          ------

          At all meetings of the Board of Directors, a majority of the
authorized number of directors shall constitute a quorum for the transaction of
business and the act of a majority of the directors present at any meeting at
which there is a quorum shall be the act of the Board of Directors, except as
may be otherwise specifically provided by statute or by the certificate of
incorporation. If a quorum is not present at any meeting of the Board of
Directors, then the directors present thereat may adjourn the meeting from time
to time, without notice other than announcement at the meeting, until a quorum
is present.

                                      -9-
<PAGE>

          A meeting at which a quorum is initially present may continue to
transact business notwithstanding the withdrawal of directors, if any action
taken is approved by at least a majority of the required quorum for that
meeting.

     3.8  Waiver Of Notice.
          ----------------

          Whenever notice is required to be given under any provision of the
General Corporation Law of Delaware or of the certificate of incorporation or
these Restated Bylaws, a written waiver thereof, signed by the person entitled
to notice, whether before or after the time stated therein, shall be deemed
equivalent to notice. Attendance of a person at a meeting shall constitute a
waiver of notice of such meeting, except when the person attends a meeting for
the express purpose of objecting, at the beginning of the meeting, to the
transaction of any business because the meeting is not lawfully called or
convened. Neither the business to be transacted at, nor the purpose of, any
regular or special meeting of the directors, or members of a committee of
directors, need be specified in any written waiver of notice unless so required
by the certificate of incorporation or these Restated Bylaws.

     3.9  Board Action By Written Consent Without A Meeting.
          -------------------------------------------------

          Unless otherwise restricted by the certificate of incorporation or
these Restated Bylaws, any action required or permitted to be taken at any
meeting of the Board of Directors, or of any committee thereof, may be taken
without a meeting if all members of the board or committee, as the case may be,
consent thereto in writing and the writing or writings are filed with the
minutes of proceedings of the board or committee. Written consents representing
actions taken by the board or committee may be executed by telex, telecopy or
other facsimile transmission, and such facsimile shall be valid and binding to
the same extent as if it were an original.

     3.10 Fees And Compensation Of Directors.
          ----------------------------------

          Unless otherwise restricted by the certificate of incorporation or
these Restated Bylaws, the Board of Directors shall have the authority to fix
the compensation of directors. No such compensation shall preclude any director
from serving the corporation in any other capacity and receiving compensation
therefor.

     3.11 Approval Of Loans To Officers.
          -----------------------------

          The corporation may lend money to, or guarantee any obligation of, or
otherwise assist any officer or other employee of the corporation or of its
subsidiary, including any officer or employee who is a director of the
corporation or its subsidiary, whenever, in the judgment of the directors, such
loan, guaranty or assistance may reasonably be expected to benefit the
corporation. The loan, guaranty or other assistance may be with or without
interest and may be unsecured, or secured in such manner as the Board of
Directors shall approve, including, without limitation, a pledge of shares of
stock of the corporation. Nothing in this section contained shall be deemed to
deny, limit or restrict the powers of guaranty or warranty of the corporation at
common law or under any statute.

                                      -10-
<PAGE>

     3.12 Removal Of Directors.
          --------------------

          Unless otherwise restricted by statute, by the certificate of
incorporation or by these Restated Bylaws, any director or the entire Board of
Directors may be removed, with or without cause, by the holders of a majority of
the shares then entitled to vote at an election of directors; provided, however,
that if the stockholders of the corporation are entitled to cumulative voting,
if less than the entire Board of Directors is to be removed, no director may be
removed without cause if the votes cast against his removal would be sufficient
to elect him if then cumulatively voted at an election of the entire Board of
Directors.

          No reduction of the authorized number of directors shall have the
effect of removing any director prior to the expiration of such director's term
of office.

     3.13 Chairman Of The Board Of Directors.
          ----------------------------------

          The corporation may also have, at the discretion of the Board of
Directors, a chairman of the Board of Directors who shall not be considered an
officer of the corporation.

                                  ARTICLE IV

                                  COMMITTEES
                                  ----------

     4.1  Committees Of Directors.
          -----------------------

          The Board of Directors may designate one or more committees, each
committee to consist of one or more of the directors of the corporation. The
Board may designate 1 or more directors as alternate members of any committee,
who may replace any absent or disqualified member at any meeting of the
committee. In the absence or disqualification of a member of a committee, the
member or members present at any meeting and not disqualified from voting,
whether or not such member or members constitute a quorum, may unanimously
appoint another member of the Board of Directors to act at the meeting in the
place of any such absent or disqualified member. Any such committee, to the
extent provided in the resolution of the Board of Directors, or in these
Restated Bylaws, shall have and may exercise all the powers and authority of the
Board of Directors in the management of the business and affairs of the
corporation, and may authorize the seal of the corporation to be affixed to all
papers which may require it; but no such committee shall have the power or
authority in reference to the following matters: (i) approving or adopting, or
recommending to the stockholders, any action or matter expressly required by
this chapter to be submitted to stockholders for approval or (ii) adopting,
amending or repealing any Bylaw of the corporation.

     4.2  Committee Minutes.
          -----------------

          Each committee shall keep regular minutes of its meetings and report
the same to the Board of Directors when required.

                                      -11-
<PAGE>

     4.3  Meetings And Action Of Committees.
          ---------------------------------

          Meetings and actions of committees shall be governed by, and held and
taken in accordance with, the provisions of Section 3.4 (place of meetings and
meetings by telephone), Section 3.5 (regular meetings), Section 3.6 (special
meetings and notice), Section 3.7 (quorum), Section 3.8 (waiver of notice), and
Section 3.9 (action without a meeting) of these Restated Bylaws, with such
changes in the context of such provisions as are necessary to substitute the
committee and its members for the Board of Directors and its members; provided,
however, that the time of regular meetings of committees may be determined
either by resolution of the Board of Directors or by resolution of the
committee, that special meetings of committees may also be called by resolution
of the Board of Directors and that notice of special meetings of committees
shall also be given to all alternate members, who shall have the right to attend
all meetings of the committee. The Board of Directors may adopt rules for the
government of any committee not inconsistent with the provisions of these
Restated Bylaws.

                                   ARTICLE V

                                   OFFICERS
                                   --------

     5.1  Officers.
          --------

          The officers of the corporation shall be a chief executive officer, a
president, a secretary, and a chief financial officer. The corporation may also
have, at the discretion of the Board of Directors, one or more vice presidents,
one or more assistant secretaries, one or more assistant treasurers, and any
such other officers as may be appointed in accordance with the provisions of
Section 5.3 of these Restated Bylaws. Any number of offices may be held by the
same person.

     5.2  Appointment Of Officers.
          -----------------------

          The officers of the corporation, except such officers as may be
appointed in accordance with the provisions of Sections 5.3 or 5.5 of these
Restated Bylaws, shall be appointed by the Board of Directors, subject to the
rights, if any, of an officer under any contract of employment.

     5.3  Subordinate Officers.
          --------------------

          The Board of Directors may appoint, or empower the chief executive
officer or the president to appoint, such other officers and agents as the
business of the corporation may require, each of whom shall hold office for such
period, have such authority, and perform such duties as are provided in these
Restated Bylaws or as the Board of Directors may from time to time determine.

                                      -12-
<PAGE>

     5.4  Removal And Resignation Of Officers.
          -----------------------------------

          Subject to the rights, if any, of an officer under any contract of
employment, any officer may be removed, either with or without cause, by an
affirmative vote of the majority of the Board of Directors at any regular or
special meeting of the board or, except in the case of an officer chosen by the
Board of Directors, by any officer upon whom such power of removal may be
conferred by the Board of Directors.

          Any officer may resign at any time by giving written notice to the
attention of the Secretary of the corporation. Any resignation shall take effect
at the date of the receipt of that notice or at any later time specified in that
notice; and, unless otherwise specified in that notice, the acceptance of the
resignation shall not be necessary to make it effective. Any resignation is
without prejudice to the rights, if any, of the corporation under any contract
to which the officer is a party.

     5.5  Vacancies In Offices.
          --------------------

          Any vacancy occurring in any office of the corporation shall be filled
by the Board of Directors.

     5.6  Chief Executive Officer.
          -----------------------

          Subject to such supervisory powers, if any, as may be given by the
Board of Directors to the chairman of the board, if any, the chief executive
officer of the corporation shall, subject to the control of the Board of
Directors, have general supervision, direction, and control of the business and
the officers of the corporation. He or she shall preside at all meetings of the
stockholders and, in the absence or nonexistence of a chairman of the board, at
all meetings of the Board of Directors and shall have the general powers and
duties of management usually vested in the office of chief executive officer of
a corporation and shall have such other powers and duties as may be prescribed
by the Board of Directors or these Restated Bylaws.

     5.7  President.
          ---------

          Subject to such supervisory powers, if any, as may be given by the
Board of Directors to the chairman of the board (if any) or the chief executive
officer, the president shall have general supervision, direction, and control of
the business and other officers of the corporation. He or she shall have the
general powers and duties of management usually vested in the office of
president of a corporation and such other powers and duties as may be prescribed
by the Board of Directors or these Restated Bylaws.

     5.8  Vice Presidents.
          ---------------

          In the absence or disability of the chief executive officer and
president, the vice presidents, if any, in order of their rank as fixed by the
Board of Directors or, if not ranked, a vice president designated by the Board
of Directors, shall perform all the duties of the president and when so acting
shall have all the powers of, and be subject to all the restrictions upon, the

                                      -13-
<PAGE>

president. The vice presidents shall have such other powers and perform such
other duties as from time to time may be prescribed for them respectively by the
Board of Directors, these Restated Bylaws, the president or the chairman of the
board.

     5.9  Secretary.
          ---------

          The secretary shall keep or cause to be kept, at the principal
executive office of the corporation or such other place as the Board of
Directors may direct, a book of minutes of all meetings and actions of
directors, committees of directors, and stockholders. The minutes shall show the
time and place of each meeting, the names of those present at directors'
meetings or committee meetings, the number of shares present or represented at
stockholders' meetings, and the proceedings thereof.

          The secretary shall keep, or cause to be kept, at the principal
executive office of the corporation or at the office of the corporation's
transfer agent or registrar, as determined by resolution of the Board of
Directors, a share register, or a duplicate share register, showing the names of
all stockholders and their addresses, the number and classes of shares held by
each, the number and date of certificates evidencing such shares, and the number
and date of cancellation of every certificate surrendered for cancellation.

          The secretary shall give, or cause to be given, notice of all meetings
of the stockholders and of the Board of Directors required to be given by law or
by these Restated Bylaws. He or she shall keep the seal of the corporation, if
one be adopted, in safe custody and shall have such other powers and perform
such other duties as may be prescribed by the Board of Directors or by these
Restated Bylaws.

     5.10 Chief Financial Officer.
          -----------------------

          The chief financial officer shall keep and maintain, or cause to be
kept and maintained, adequate and correct books and records of accounts of the
properties and business transactions of the corporation, including accounts of
its assets, liabilities, receipts, disbursements, gains, losses, capital
retained earnings, and shares. The books of account shall at all reasonable
times be open to inspection by any director.

          The chief financial officer shall deposit all moneys and other
valuables in the name and to the credit of the corporation with such
depositories as may be designated by the Board of Directors. He or she shall
disburse the funds of the corporation as may be ordered by the Board of
Directors, shall render to the president, the chief executive officer, or the
directors, upon request, an account of all his or her transactions as chief
financial officer and of the financial condition of the corporation, and shall
have other powers and perform such other duties as may be prescribed by the
Board of Directors or the Restated Bylaws.

     5.11 Representation Of Shares Of Other Corporations.
          ----------------------------------------------

          The chairman of the board, the chief executive officer, the president,
any vice president, the chief financial officer, the secretary or assistant
secretary of this corporation, or

                                      -14-
<PAGE>

any other person authorized by the Board of Directors or the chief executive
officer or the president or a vice president, is authorized to vote, represent,
and exercise on behalf of this corporation all rights incident to any and all
shares of any other corporation or corporations standing in the name of this
corporation. The authority granted herein may be exercised either by such person
directly or by any other person authorized to do so by proxy or power of
attorney duly executed by the person having such authority.

     5.12 Authority And Duties Of Officers.
          --------------------------------

          In addition to the foregoing authority and duties, all officers of the
corporation shall respectively have such authority and perform such duties in
the management of the business of the corporation as may be designated from time
to time by the Board of Directors or the stockholders.

                                  ARTICLE VI

      INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES, AND OTHER AGENTS
      -------------------------------------------------------------------

     6.1  Indemnification Of Directors And Officers.
          -----------------------------------------

          The corporation shall, to the maximum extent and in the manner
permitted by the General Corporation Law of Delaware, indemnify each of its
directors and officers against expenses (including attorneys' fees), judgments,
fines, settlements and other amounts actually and reasonably incurred in
connection with any proceeding, arising by reason of the fact that such person
is or was an agent of the corporation. For purposes of this Section 6.1, a
"director" or "officer" of the corporation includes any person (a) who is or was
a director or officer of the corporation, (b) who is or was serving at the
request of the corporation as a director or officer of another corporation,
partnership, joint venture, trust or other enterprise, or (c) who was a director
or officer of a corporation which was a predecessor corporation of the
corporation or of another enterprise at the request of such predecessor
corporation.

     6.2  Indemnification Of Others.
          -------------------------

          The corporation shall have the power, to the maximum extent and in the
manner permitted by the General Corporation Law of Delaware, to indemnify each
of its employees and agents (other than directors and officers) against expenses
(including attorneys' fees), judgments, fines, settlements and other amounts
actually and reasonably incurred in connection with any proceeding, arising by
reason of the fact that such person is or was an agent of the corporation. For
purposes of this Section 6.2, an "employee" or "agent" of the corporation (other
than a director or officer) includes any person (a) who is or was an employee or
agent of the corporation, (b) who is or was serving at the request of the
corporation as an employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, or (c) who was an employee or agent of a
corporation which was a predecessor corporation of the corporation or of another
enterprise at the request of such predecessor corporation.

                                      -15-
<PAGE>

     6.3  Payment Of Expenses In Advance.
          ------------------------------

          Expenses incurred in defending any action or proceeding for which
indemnification is required pursuant to Section 6.1 or for which indemnification
is permitted pursuant to Section 6.2 following authorization thereof by the
Board of Directors shall be paid by the corporation in advance of the final
disposition of such action or proceeding upon receipt of an undertaking by or on
behalf of the indemnified party to repay such amount if it shall ultimately be
determined that the indemnified party is not entitled to be indemnified as
authorized in this Article VI.

     6.4  Indemnity Not Exclusive.
          -----------------------

          The indemnification provided by this Article VI shall not be deemed
exclusive of any other rights to which those seeking indemnification may be
entitled under any bylaw, agreement, vote of shareholders or disinterested
directors or otherwise, both as to action in an official capacity and as to
action in another capacity while holding such office, to the extent that such
additional rights to indemnification are authorized in the certificate of
incorporation

     6.5  Insurance.
          ---------

          The corporation may purchase and maintain insurance on behalf of any
person who is or was a director, officer, employee or agent of the corporation,
or is or was serving at the request of the corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or
other enterprise against any liability asserted against him or her and incurred
by him or her in any such capacity, or arising out of his or her status as such,
whether or not the corporation would have the power to indemnify him or her
against such liability under the provisions of the General Corporation Law of
Delaware.

     6.6  Conflicts.
          ---------

          No indemnification or advance shall be made under this Article VI,
except where such indemnification or advance is mandated by law or the order,
judgment or decree of any court of competent jurisdiction, in any circumstance
where it appears:

          (a) That it would be inconsistent with a provision of the certificate
of incorporation, these Restated Bylaws, a resolution of the stockholders or an
agreement in effect at the time of the accrual of the alleged cause of the
action asserted in the proceeding in which the expenses were incurred or other
amounts were paid, which prohibits or otherwise limits indemnification; or

          (b) That it would be inconsistent with any condition expressly imposed
by a court in approving a settlement.

                                      -16-
<PAGE>

                                  ARTICLE VII

                              RECORDS AND REPORTS
                              -------------------

     7.1  Maintenance And Inspection Of Records.
          -------------------------------------

          The corporation shall, either at its principal executive offices or at
such place or places as designated by the Board of Directors, keep a record of
its stockholders listing their names and addresses and the number and class of
shares held by each stockholder, a copy of these Restated Bylaws as amended to
date, accounting books, and other records.

          Any stockholder of record, in person or by attorney or other agent,
shall, upon written demand under oath stating the purpose thereof, have the
right during the usual hours for business to inspect for any proper purpose the
corporation's stock ledger, a list of its stockholders, and its other books and
records and to make copies or extracts therefrom. A proper purpose shall mean a
purpose reasonably related to such person's interest as a stockholder. In every
instance where an attorney or other agent is the person who seeks the right to
inspection, the demand under oath shall be accompanied by a power of attorney or
such other writing that authorizes the attorney or other agent to so act on
behalf of the stockholder. The demand under oath shall be directed to the
corporation at its registered office in Delaware or at its principal place of
business.

     7.2  Inspection By Directors.
          -----------------------

          Any director shall have the right to examine the corporation's stock
ledger, a list of its stockholders, and its other books and records for a
purpose reasonably related to his or her position as a director. The Court of
Chancery is hereby vested with the exclusive jurisdiction to determine whether a
director is entitled to the inspection sought. The Court may summarily order the
corporation to permit the director to inspect any and all books and records, the
stock ledger, and the stock list and to make copies or extracts therefrom. The
Court may, in its discretion, prescribe any limitations or conditions with
reference to the inspection, or award such other and further relief as the Court
may deem just and proper.

     7.3  Annual Statement To Stockholders.
          --------------------------------

          The Board of Directors shall present at each annual meeting, and at
any special meeting of the stockholders when called for by vote of the
stockholders, a full and clear statement of the business and condition of the
corporation.

                                 ARTICLE VIII

                                GENERAL MATTERS
                                ---------------

     8.1  Checks.
          ------

          From time to time, the Board of Directors shall determine by
resolution which person or persons may sign or endorse all checks, drafts, other
orders for payment of money,

                                      -17-
<PAGE>

notes or other evidences of indebtedness that are issued in the name of or
payable to the corporation, and only the persons so authorized shall sign or
endorse those instruments.

     8.2  Execution Of Corporate Contracts And Instruments.
          ------------------------------------------------

          The Board of Directors, except as otherwise provided in these Restated
Bylaws, may authorize any officer or officers, or agent or agents, to enter into
any contract or execute any instrument in the name of and on behalf of the
corporation; such authority may be general or confined to specific instances.
Unless so authorized or ratified by the Board of Directors or within the agency
power of an officer, no officer, agent or employee shall have any power or
authority to bind the corporation by any contract or engagement or to pledge its
credit or to render it liable for any purpose or for any amount.

     8.3  Stock Certificates; Partly Paid Shares.
          --------------------------------------

          The shares of a corporation shall be represented by certificates,
provided that the Board of Directors of the corporation may provide by
resolution or resolutions that some or all of any or all classes or series of
its stock shall be uncertificated shares. Any such resolution shall not apply to
shares represented by a certificate until such certificate is surrendered to the
corporation. Notwithstanding the adoption of such a resolution by the Board of
Directors, every holder of stock represented by certificates and upon request
every holder of uncertificated shares shall be entitled to have a certificate
signed by, or in the name of the corporation by the chairman or vice-chairman of
the Board of Directors, or the president or vice-president, and by the chief
financial officer or an assistant treasurer, or the secretary or an assistant
secretary of such corporation representing the number of shares registered in
certificate form. Any or all of the signatures on the certificate may be a
facsimile. In case any officer, transfer agent or registrar who has signed or
whose facsimile signature has been placed upon a certificate has ceased to be
such officer, transfer agent or registrar before such certificate is issued, it
may be issued by the corporation with the same effect as if he or she were such
officer, transfer agent or registrar at the date of issue.

          The corporation may issue the whole or any part of its shares as
partly paid and subject to call for the remainder of the consideration to be
paid therefor. Upon the face or back of each stock certificate issued to
represent any such partly paid shares, upon the books and records of the
corporation in the case of uncertificated partly paid shares, the total amount
of the consideration to be paid therefor and the amount paid thereon shall be
stated. Upon the declaration of any dividend on fully paid shares, the
corporation shall declare a dividend upon partly paid shares of the same class,
but only upon the basis of the percentage of the consideration actually paid
thereon.

     8.4  Special Designation On Certificates.
          -----------------------------------

          If the corporation is authorized to issue more than one class of stock
or more than one series of any class, then the powers, the designations, the
preferences, and the relative, participating, optional or other special rights
of each class of stock or series thereof and the qualifications, limitations or
restrictions of such preferences and/or rights shall be set forth in full

                                      -18-
<PAGE>

or summarized on the face or back of the certificate that the corporation shall
issue to represent such class or series of stock; provided, however, that,
except as otherwise provided in Section 202 of the General Corporation Law of
Delaware, in lieu of the foregoing requirements there may be set forth on the
face or back of the certificate that the corporation shall issue to represent
such class or series of stock a statement that the corporation will furnish
without charge to each stockholder who so requests the powers, the designations,
the preferences, and the relative, participating, optional or other special
rights of each class of stock or series thereof and the qualifications,
limitations or restrictions of such preferences and/or rights.

     8.5  Lost Certificates.
          -----------------

          Except as provided in this Section 8.5, no new certificates for shares
shall be issued to replace a previously issued certificate unless the latter is
surrendered to the corporation and cancelled at the same time. The corporation
may issue a new certificate of stock or uncertificated shares in the place of
any certificate previously issued by it, alleged to have been lost, stolen or
destroyed, and the corporation may require the owner of the lost, stolen or
destroyed certificate, or the owner's legal representative, to give the
corporation a bond sufficient to indemnify it against any claim that may be made
against it on account of the alleged loss, theft or destruction of any such
certificate or the issuance of such new certificate or uncertificated shares.

     8.6  Construction; Definitions.
          -------------------------

          Unless the context requires otherwise, the general provisions, rules
of construction, and definitions in the Delaware General Corporation Law shall
govern the construction of these Restated Bylaws. Without limiting the
generality of this provision, the singular number includes the plural, the
plural number includes the singular, and the term "person" includes both a
corporation and a natural person.

     8.7  Dividends.
          ---------

          The directors of the corporation, subject to any restrictions
contained in (a) the General Corporation Law of Delaware or (b) the certificate
of incorporation, may declare and pay dividends upon the shares of its capital
stock. Dividends may be paid in cash, in property, or in shares of the
corporation's capital stock.

          The directors of the corporation may set apart out of any of the funds
of the corporation available for dividends a reserve or reserves for any proper
purpose and may abolish any such reserve. Such purposes shall include but not be
limited to equalizing dividends, repairing or maintaining any property of the
corporation, and meeting contingencies.

     8.8  Fiscal Year.
          -----------

          The fiscal year of the corporation shall be fixed by resolution of the
Board of Directors and may be changed by the Board of Directors.

                                      -19-
<PAGE>

     8.9  Seal.
          ----

          The corporation may adopt a corporate seal, which may be altered at
pleasure, and may use the same by causing it or a facsimile thereof, to be
impressed or affixed or in any other manner reproduced.

     8.10 Transfer Of Stock.
          -----------------

          Upon surrender to the corporation or the transfer agent of the
corporation of a certificate for shares duly endorsed or accompanied by proper
evidence of succession, assignation or authority to transfer, it shall be the
duty of the corporation to issue a new certificate to the person entitled
thereto, cancel the old certificate, and record the transaction in its books.

     8.11 Stock Transfer Agreements.
          -------------------------

          The corporation shall have power to enter into and perform any
agreement with any number of stockholders of any one or more classes of stock of
the corporation to restrict the transfer of shares of stock of the corporation
of any one or more classes owned by such stockholders in any manner not
prohibited by the General Corporation Law of Delaware.

     8.12 Registered Stockholders.
          -----------------------

          The corporation shall be entitled to recognize the exclusive right of
a person registered on its books as the owner of shares to receive dividends and
to vote as such owner, shall be entitled to hold liable for calls and
assessments the person registered on its books as the owner of shares, and shall
not be bound to recognize any equitable or other claim to or interest in such
share or shares on the part of another person, whether or not it shall have
express or other notice thereof, except as otherwise provided by the laws of
Delaware.

                                  ARTICLE IX

                                  AMENDMENTS
                                  ----------

          The Restated Bylaws of the corporation may be adopted, amended or
repealed by the stockholders entitled to vote; provided, however, that the
corporation may, in its certificate of incorporation, confer the power to adopt,
amend or repeal Restated Bylaws upon the directors. The fact that such power has
been so conferred upon the directors shall not divest the stockholders of the
power, nor limit their power to adopt, amend or repeal Restated Bylaws.

                                      -20-

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