Document:

<PAGE>   1

                                                                    EXHIBIT 10.3

                           SIZZLER INTERNATIONAL, INC.

                           WESTPAC BANKING CORPORATION

                             GUARANTEE AND INDEMNITY

                                 MINTER ELLISON
                                     Lawyers
                                Waterfront Place
                                 1 Eagle Street
                                BRISBANE QLD 4000

                                 DX 102 Brisbane
                            Telephone (07) 3226 6333
                            Facsimile (07) 3229 1066

                                 SKL GB 1090692

<PAGE>   2

                             GUARANTEE AND INDEMNITY

AGREEMENT dated August 21, 2000

BETWEEN        SIZZLER INTERNATIONAL, INC (a company incorporated in Delaware,
               United States of America) ('GUARANTOR')

AND            WESTPAC BANKING CORPORATION ARBN 007 457 141 of 260 Queen Street,
               Brisbane, Queensland, Australia ('THE FINANCIER')

RECITALS

A.      At the request of the Guarantor, the Financier has agreed to enter into
        a bill facility agreement dated on or about the date of this Agreement
        (the 'Principal Agreement') with Collins Restaurants Management Pty Ltd
        ACN 093 912 979 ('THE DEBTOR').

B.      In consideration of the Financier agreeing to enter into the Principal
        Agreement, the Guarantor has agreed to provide a guarantee and
        indemnity, on the terms set out in this agreement, in respect of the
        Debtor's obligations under the Principal Agreement.

AGREEMENT

1.      DEFINITIONS

1.1     In this agreement, the following words and expressions have the meanings
        indicated unless the contrary intention appears.

        "AUTHORISED OFFICER" means:

        (a)     in relation to the Financier, an attorney of the Financier and a
                person holding or acting in the office of director, chief
                executive or secretary or whose title includes the word
                'Manager' or 'Director; and

        (b)     in relation to the Guarantor, a person holding or acting in the
                office of president, vice president, chief financial officer,
                chief executive or secretary.

        'BUSINESS DAY' means a day on which banks (as that term is defined in
        the Banking Act 1959 (Cth)) are open for general business in Brisbane,
        excluding Saturdays or Sundays.

        'COLLATERAL SECURITY' means every letter of credit, bond, guarantee,
        indemnity, mortgage, charge, pledge, lien, encumbrance, negotiable
        instrument, security, deed, agreement and document now or in the future
        held or taken by the Financier or entered into by the Financier and any
        other person in connection with the Guaranteed Obligation.

        'GUARANTEED MONEYS' means all moneys owing by the Debtor, on any
        account, to the Financier up to a maximum amount of A$10 million.

        'SUBSIDIARY' of a corporation means an entity whose accounts are
        included in the first corporations consolidated accounts.

<PAGE>   3
                                       2

2.      CONSIDERATION

        The Guarantor acknowledges that the Guarantor is entering into this
        agreement in consideration of the Financier agreeing at the request of
        the Guarantor to enter into the Principal Agreement with the Debtor.

3.      GUARANTEE AND INDEMNITY

3.1     The Guarantor unconditionally and irrevocably guarantees to the
        Financier that the Debtor will pay the Guaranteed Moneys to the
        Financier ('the Guaranteed Obligation').

3.2     If:

        (a)     the Debtor does not pay the Guaranteed Moneys or any part of the
                Guaranteed Moneys on time; and

        (b)     the Financier makes a demand on the Guarantor,

        the Guarantor must pay the Guaranteed Moneys to the Financier on demand,
        whether or not the Financier has made a demand on the Debtor.

3.3     The Financier shall only be entitled to make a demand on the Guarantor
        pursuant to clause 3.2 if:

        (a)     the Financier does not receive on or before 15 December 2000
                evidence reasonably satisfactory to it that a management equity
                agreement, as defined in the Principal Agreement, is signed by
                all of the parties to it and in full force and effect as at 15
                December 2000; and

        (b)     the 30 day written notice period referred to in the last
                paragraph of clause 5.6 of the Principal Agreement has expired.

3.4     The Guarantor unconditionally and irrevocably indemnifies the Financier
        against all losses, damages, costs and expenses which the Financier may
        now or in the future suffer or incur consequent on or arising directly
        or indirectly out of any breach or non-observance by the Debtor of the
        Guaranteed Obligation up to a maximum amount of $10 million.

3.5     The indemnity contained in clause 3.4 remains effective even if the
        Guaranteed Obligation is or may be unenforceable or at any time not
        immediately enforceable against the Debtor (whether by reason of any
        legal limitation, disability or incapacity on or of the Debtor and
        whether the Principal Agreement was void ab initio or has been
        subsequently avoided and whether or not any of the relevant facts were
        or ought to have been known by the Financier).

3.6     The other provisions of this agreement apply to the Guarantor's
        indemnity even if the guarantee contained in clause 3.1 is invalid or
        unenforceable and the Guarantor waives all rights which may be
        inconsistent with this clause.

<PAGE>   4
                                       3

4.      PRESERVATION OF RIGHTS OF THE FINANCIER

4.1     This agreement constitutes a continuing guarantee and indemnity for the
        purpose of securing the whole of the Guaranteed Obligation, even if the
        Guaranteed Obligation is partially performed.

4.2     The liabilities of the Guarantor under this agreement are not altered or
        extinguished nor are the rights of the Financier against the Guarantor
        under this agreement adversely affected by anything which might
        otherwise have that effect at law or in equity including, but not
        limited to, one or more of the following (whether occurring with or
        without any person's consent):

        (a)     the granting of time or other indulgence or concession to,
                compounding or compromising with or wholly or partially
                releasing the Debtor, any other Guarantor or any other person in
                any way;

        (b)     laches, acquiescence, delay, acts, omissions or mistakes on the
                part of the Financier or any other person;

        (c)     the transaction of business, expressly or impliedly, with, for
                or at the request of the Debtor, the Guarantor or any other
                person;

        (d)     any variation, assignment or novation of the Principal Agreement
                (whether by the Debtor or the Financier or both of them);

        (e)     changes which from time to time may take place in the
                membership, name or business of a firm, partnership, committee
                or association whether by death, retirement, admission or
                otherwise whether or not the Debtor, the Guarantor or any other
                person was a member;

        (f)     the existence of any Collateral Security or of any obligation of
                the Guarantor to the Financier in addition to the Guarantor's
                obligations under this agreement;

        (g)     the loss or impairment of a Collateral Security or a Collateral
                Security being void, voidable or unenforceable;

        (h)     the Financier or any other person dealing in any way with any
                Collateral Security or with any right which the Financier may
                now or in the future have from or against the Debtor or any
                other person (including, but not limited to, taking, abandoning
                or releasing (wholly or partially), realising, exchanging,
                varying or abstaining from perfecting or taking advantage of
                it);

        (i)     the death or insolvency of any person;

        (j)     a change in the legal capacity, rights or obligations of any
                person;

        (k)     the fact that any person is a trustee, nominee, joint owner,
                joint venturer or a member of a partnership, firm or
                association;

        (l)     a judgment against the Debtor or any other person.

4.3     This agreement is valid and fully enforceable against any executing
        party despite:

<PAGE>   5
                                       4

        (a)     any failure to execute by any person intended to be, or in
                contemplation as, a party to this agreement;

        (b)     any defect in the manner of execution of this agreement by any
                party; or

        (c)     this agreement being for any other reason unenforceable against
                any party or against any person intended to be, or in
                contemplation as, a party to this agreement.

4.4     If:

        (a)     a claim is made that any payment, obligation or transaction
                ('RELEVANT EVENT') in connection with the Guaranteed Obligation
                is void or voidable under any law relating to insolvency or the
                protection of creditors or for any other reason;

        (b)     that claim is upheld, conceded or compromised; and

        (c)     a release, settlement or discharge has been made or given on the
                faith of the Relevant Event,

        that release, settlement or discharge is void and, accordingly:

        (d)     the Financier and the Guarantor may exercise all rights and be
                subject to all liabilities which they respectively would have
                had if the Relevant Event had not occurred and any release,
                settlement or discharge had not been made or given; and

        (e)     the Guarantor must take all steps and sign all documents
                required by the Financier in connection with the replacement or
                reinstatement of this agreement and any other securities
                previously held by the Financier from the Guarantor.

4.5     Even if payment is made to the Financier under this agreement, in the
        event of the insolvency of the Debtor or the Guarantor, the Financier
        may prove for any amount payable to it under the Principal Agreement or
        this agreement as if that payment had not been made.

5.      RESTRICTIONS ON GUARANTOR

5.1     The Guarantor waives any right which it may have to require the
        Financier to proceed against or enforce any other right, power, remedy
        or security against or to claim payment from the Debtor or any other
        person before claiming from the Guarantor under this agreement.

5.2     Until the Guarantor is released from its obligations under this
        agreement the Guarantor:

        (a)     may not claim the benefit of any Collateral Security;

        (b)     must hold or cause to be held in trust for the Financier any
                security which is held by or for the Guarantor from the Debtor;

<PAGE>   6
                                       5

        (c)     in the event of the insolvency of the Debtor or any other
                Guarantor, must not prove in that insolvency in competition with
                the Financier, whether in respect of an amount paid by the
                Guarantor under this agreement or otherwise;

        (d)     must not raise against the Financier a defence, set-off or
                counterclaim available to itself, the Debtor or any other
                Guarantor, or claim a set-off or make a counterclaim against the
                Financier, in reduction of the Guarantor's liability under this
                agreement; and

        (e)     must not make a claim or enforce a right against the Debtor or
                any other Guarantor or against their estate or property.

6.      WARRANTIES

6.1     The Guarantor represents and warrants that:

        (a)     it has in full effect the authorisations necessary to enter into
                this agreement, perform obligations under it and allow it to be
                enforced;

        (b)     its obligations under this agreement are not void, voidable or
                unenforceable;

        (c)     it has fully disclosed in writing to the Financier all facts
                relating to the Guarantor, this agreement and anything in
                connection with it which are material to the assessment of the
                nature and amount of the risk undertaken by the Financier in
                entering into this agreement and doing anything in connection
                with it;

        (d)     its obligations under this agreement rank at least equally with
                all other unsecured and unsubordinated indebtedness of the
                Guarantor except liabilities mandatorily preferred by law; and

        (e)     it is not entering into this agreement in its capacity as a
                trustee of any trust or settlement.

6.2     The Guarantor also represents and warrants that:

        (a)     it has been duly incorporated in accordance with the relevant
                legislation in force in its place of incorporation, is validly
                existing under that legislation, owns its rights, property,
                undertaking and assets and has power and authority to carry on
                its business as it is now being conducted;

        (b)     it has power to enter into and observe its obligations under
                this agreement;

        (c)     this agreement and the transactions under it do not contravene
                its constituent documents or its obligations or cause a
                limitation of its powers or the powers of its directors to be
                exceeded;

        (d)     the most recent audited financial report of the Guarantor and
                audited consolidated financial statements of the Guarantor and
                its Subsidiaries give a true and fair view of its financial
                position and their consolidated financial

<PAGE>   7
                                       6

                position in all material respects as at the date to which they
                are prepared and disclose or reflect all their material actual
                and contingent liabilities;

        (e)     there has been no material adverse change in the financial
                position of the Guarantor or in the consolidated financial
                position of the Guarantor and its Subsidiaries since the date to
                which the audited financial report of the Guarantor and audited
                consolidated financial statements of the Guarantor and its
                Subsidiaries were last prepared before the date of this
                agreement;

        (f)     neither the Guarantor nor any of its Subsidiaries is in default
                under a law, regulation, official directive, instrument,
                undertaking or obligation which has or may have a material
                affect on any of them or their respective assets;

        (g)     there is no pending or threatened action or proceeding affecting
                the Guarantor or any of its Subsidiaries or any of their
                respective assets before a court, governmental agency,
                commission or arbitrator which may have a material affect on the
                Guarantor's ability to perform the Guaranteed Obligations;

        (h)     neither the Guarantor nor any of its Subsidiaries has immunity
                from the jurisdiction of a court or from legal process (whether
                through service of notice, attachment prior to judgment,
                attachment in aid of execution, execution or otherwise).

6.3     The warranties set out in this clause are made on the date of this
        agreement and apply continuously throughout the term of this agreement.

7.      CERTIFICATE

        A certificate signed by an Authorised Officer of the Financier
        specifying any matter of a factual nature which is relevant to any of
        the rights or obligations of the Financier, the Debtor or the Guarantor
        in connection with the Guaranteed Obligation is admissible in any
        proceedings and is conclusive evidence of the matters specified in it
        except in the case of manifest error.

8.      DISCHARGE OF GUARANTOR

8.1     The Financier may in its absolute discretion retain its copy of this
        agreement and decline to execute a release or discharge of the Guarantor
        from its liabilities under this agreement until the Financier is
        satisfied that no payment or other transaction in connection with the
        Guaranteed Obligation remains liable to be avoided as described in
        clause 4.4.

8.2     A discharge or release of the Guarantor from its liabilities under this
        agreement:

        (a)     is effective if it is in writing and signed by an Authorised
                Officer of the Financier; and

        (b)     is subject to clause 4.4.

9.      ASSIGNMENT

<PAGE>   8
                                       7

        The Financier may assign its rights under this agreement and is not
        obliged to give notice to, or obtain the consent of, the Guarantor in
        respect of the assignment.

10.     COSTS

10.1    The Guarantor must pay to the Financier on demand:

        (a)     all taxes, levies, imposts, deductions and charges of any nature
                whatever (other than income tax imposed on the income of the
                Financier) and all stamp, financial institutions, registration
                and other governmental duties (together with interest or
                penalties, if any) imposed under the laws of the Commonwealth of
                Australia or its States or Territories and incurred directly or
                indirectly by the Financier on or in respect of this agreement;

        (b)     all other costs, charges and expenses incurred by or on behalf
                of the Financier:

                (i)     in or about the preparation and execution of this
                        agreement including all legal costs and expenses; and

                (ii)    on or in connection with the preservation of the rights
                        of the Financier or any breach or default in the
                        observance or performance by the Guarantor of the
                        provisions of this agreement.

10.2    For the purposes of this clause and in the absence of manifest error a
        written statement signed by an Authorised Officer of the Financier
        setting out any amount payable in terms of this clause is conclusive.

11.     ENTIRE AGREEMENT

        This agreement constitutes the entire agreement of the parties as to its
        subject matter. The parties acknowledge that there is no other
        understanding, agreement, warranty, representation or indemnity, whether
        expressed or implied and whether given or reached prior to or at the
        same time as this agreement, in any way relating to these provisions or
        any of the matters to which this agreement relates, other than any
        warranty implied by statute the operation of which cannot be excluded.

12.     ALTERATION

        This agreement may only be altered in writing signed by each party.

13.     FURTHER ACTION

        Each party must:

        (a)     use its best endeavours to do all things necessary or desirable
                to give full effect to this agreement; and

        (b)     refrain from doing anything which might hinder performance of
                this agreement.

14.     GOVERNING LAW AND JURISDICTION

<PAGE>   9
                                       8

14.1    This agreement is governed by the law of Queensland.

14.2    Each party irrevocably and unconditionally submits to the non-exclusive
        jurisdiction of the courts of Queensland.

15.     AGENT FOR SERVICE OF PROCESS

        The Guarantor, having its registered office outside Queensland:

        (a)     irrevocably appoints Collins Restaurants Management Pty Ltd ACN
                093 912 979 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.

16.     NOTICE

16.1    A notice given by a party to another party under this agreement must be:

        (a)     in writing;

        (b)     directed to the recipient's address specified in this agreement
                or as varied by written notice; and

        (c)     hand delivered or sent by prepaid post or facsimile to that
                address.

16.2    For the purposes of clause 16.1(b) the Guarantor's address is the
        address of the agent appointed pursuant to clause 15.

16.3    A notice given in accordance with clause 16.1 is taken to be received:

        (a)     if hand delivered, on delivery;

        (b)     if sent by prepaid post, 2 Business Days after the date of
                posting; or

        (c)     if sent by facsimile, when the confirmation is received.

16.4    The provisions of this clause are in addition to any other method of
        service permitted by law.

17.     WAIVER

        The failure of the Financier at any time to require performance by the
        Guarantor of an obligation under this agreement is not a waiver of the
        Financier's right at any time later to insist on performance of that or
        any other obligation under this agreement.

18.     SEVERABILITY

<PAGE>   10
                                       9

18.1    The parties agree that a construction of this agreement which results in
        all provisions being enforceable is to be preferred to a construction
        which does not so result.

18.2    If, despite the application of clause 18.1, a provision of this
        agreement 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 agreement will continue to have full force and
        effect.

19.     COUNTERPARTS

        This agreement may be executed in any number of counterparts. A
        counterpart unconditionally executed and delivered by a party binds that
        party.

20.     INTERPRETATION

20.1    In this agreement, unless the contrary intention appears:

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

        (b)     words and expressions importing natural persons include
                partnerships, bodies corporate, associations, governments and
                governmental and local authorities and agencies;

        (c)     a reference to any legislation or statutory instrument or
                regulation is construed in accordance with the Acts
                Interpretation Act 1901 (Cth) or the equivalent State
                legislation, as applicable;

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

        (e)     a reference to a clause, paragraph, schedule or annexure is a
                reference to a clause or paragraph of or schedule or annexure to
                this agreement and a reference to this agreement includes any
                schedules and annexures;

        (f)     if a party to this agreement comprises 2 or more persons, the
                provisions of this agreement binding that party binds those
                persons jointly and severally;

        (g)     words and expressions defined in the Corporations Law as at the
                date of this agreement have the meanings given to them in the
                Corporations Law at that date;

        (h)     a reference to a party to this agreement or any other document
                or agreement includes its successors and permitted assigns;

        (i)     a reference to dollars or '$' is a reference to Australian
                dollars;

<PAGE>   11
                                       10

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

        (k)     headings are for ease of reference only and do not affect the
                construction of this agreement; and

        (l)     a reference to writing includes typewriting, printing,
                lithography, photography and any other method of representing or
                reproducing words, figures or symbols in a permanent and visible
                form.

21.     GOODS AND SERVICES TAX

21.1    All payments to be made by the Guarantor under or in connection with
        this agreement have been calculated without regard to GST.

        If all or part of any such payment is the consideration for a taxable
        supply for GST purposes then, when the Guarantor makes the payment:

        (a)     it must pay to the Financier an additional amount equal to that
                payment (or part) multiplied by the appropriate rate of GST; and

        (b)     the Financier will promptly provide to the Guarantor a tax
                invoice complying with the GST law.

21.2    Where under this agreement the Guarantor is required to reimburse or
        indemnify for an amount, the Guarantor will pay the relevant amount
        (including any sum in respect of GST) less any GST input tax credit the
        Financier determines that it is entitled to claim in respect of that
        amount.

21.3    Any word or expression used in this clause which is defined in A New Tax
        System (Goods and Services Tax) Act 1999 (C'th) has the same meaning in
        this document.

EXECUTED as an agreement.

THE COMMON SEAL of                                      )
SIZZLER INTERNATIONAL, INC.                             )
is fixed to this document in accordance with            )
its constitution in the presence of                     )

-----------------------------------          -----------------------------------
Signature of authorised officer              Signature of authorised officer
                                             (Please delete as applicable)

-----------------------------------          -----------------------------------
Name of authorised officer (print)           Name of authorised officer (print)

<PAGE>   12
                                       11

SIGNED for and on behalf of WESTPAC BANKING    ) WESTPAC BANKING CORPORATION by
CORPORATION by                                 ) its attorneys who respectively
                                               ) state that at the time of their
                                        and    ) executing this instrument they
                                               ) have no notice of the
its duly constituted attorneys in the presence ) revocation of the Power of
of                                             ) Attorney registered in the
                                               ) office of the Registrar General
                                               ) No. 390 Book 4047 under the
                                               ) authority of which they have
                                               ) executed this instrument

-----------------------------------          -----------------------------------
Witness<PAGE>   1

                                                                    EXHIBIT 10.4

                           SIZZLER ASIA HOLDINGS, INC.

                           WESTPAC BANKING CORPORATION
                                ARBN 007 457 141

                                  STOCK PLEDGE

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

                                   GB 1090692

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>      <C>                                                                  <C>
1.       INTERPRETATION........................................................1

2.       CHARGE................................................................5

3.       [INTENTIONALLY OMITTED]...............................................6

4.       CHARGOR'S OBLIGATIONS.................................................6

5.       CHARGOR'S REPORTING OBLIGATIONS.......................................8

6.       ACCESS TO AND INVESTIGATION OF RECORDS................................8

7.       BETTER SECURITY AND RIGHTS FOR FINANCIER..............................8

8.       REPRESENTATIONS AND WARRANTIES........................................9

9.       EFFECT OF EVENT OF DEFAULT...........................................10

10.      FINANCIER'S POWERS...................................................10

11.      RECEIVER'S POWERS....................................................14

12.      POWER OF ATTORNEY....................................................15

13.      NOTICES AND DEMANDS FROM THE FINANCIER...............................16

14.      PRESERVING THE FINANCIER'S RIGHTS, POWERS AND REMEDIES...............17

15.      THIRD PARTY PROVISIONS...............................................18

16.      MISCELLANEOUS........................................................20
</TABLE>

<PAGE>   3

                                  STOCK PLEDGE

DEED dated August 21, 2000

BETWEEN        SIZZLER ASIA HOLDINGS, INC., A DELAWARE CORPORATION, UNITED
               STATES OF AMERICA C/- 16 EDMONDSTONE STREET, NEWMARKET, BRISBANE,
               QUEENSLAND, AUSTRALIA
                                                                     ("CHARGOR")

AND            WESTPAC BANKING CORPORATION ARBN 007 457 141 OF 260 QUEEN STREET,
               BRISBANE, QUEENSLAND, AUSTRALIA
                                                                   ("FINANCIER")

1.      INTERPRETATION

1.1     DEFINITIONS

        In this document:

        "ATTORNEY" means an attorney appointed under a Relevant Agreement.

        "AUTHORISED OFFICER" means:

        (a)    in relation to the Financier, an attorney of the Financier and a
               person holding or acting in the office of director, chief
               executive or secretary or whose title includes the word 'Manager'
               or 'Director'; and

        (b)    in relation to the Chargor, a person holding or acting in the
               office of president, vice president, chief financial officer,
               chief executive or secretary.

        "BUSINESS DAY" means a day on which banks (as defined in the Banking Act
        1959 (Cth)) are open for general banking business in Brisbane, excluding
        Saturdays and Sundays and public holidays.

        "CHARGE" means the charge over, and security interest in the Charged
        Property created under this document.

        "CHARGED PROPERTY" means:

        (a)    100 shares of the common stock of Sizzler Restaurant Services,
               Inc ('SRS') represented by Certificate Number 1;

        (b)    100 shares of the common stock of Sizzler South East Asia, Inc
               ('SSEA'), represented by Certificate Number 1;

        (c)    100 shares of the common stock of Sizzler New Zealand, Limited
               ('SNZ') represented by Certificate Number 1;

        (d)    all other shares of capital stock of whatever class of SRS, SSEA
               and SNZ, that are now or hereafter owned by the Chargor, together
               with the certificates representing such shares;

<PAGE>   4
                                       2

        (e)    all shares, securities, moneys or property representing any
               dividends, distributions, warrants, rights and options relating
               to such shares;

        (f)    without affecting the provisions of any Relevant Agreement
               prohibiting a consolidation or merger, in the event of any
               consolidation or merger of SRS, SSEA or SNZ all shares of each
               class of capital stock of the successor corporation, together
               with the certificates representing such shares; and

        (g)    all proceeds of the foregoing.

        "COLLATERAL SECURITY" means a Guarantee, Security Interest or negotiable
        instrument held or given, whether before or after this document is
        executed, as security for or otherwise in connection with the Secured
        Money.

        "DEBTOR" means a Customer or Guarantor as defined in the Negative
        Pledge.

        "EVENT OF DEFAULT" has the meaning given to it in the Negative Pledge
        and includes the Events of Default contained in clauses 13(a)(iii)
        (without the word "other" in the first line), (b), (d), (e) (with
        respect to the first sentence only), (g) (with respect to the first
        sentence only) and (p) of the Negative Pledge as if the Chargor were a
        Relevant Company.

        "GUARANTEE" means a guarantee, indemnity, letter of credit, letter of
        comfort or any other obligation (whatever it is called and whatever its
        nature) by which a person is responsible for another person"s obligation
        or debt.

        "LIQUIDATION" includes official management, receivership, compromise,
        arrangement, amalgamation, administration, reconstruction, winding up,
        dissolution, assignment for the benefit of creditors, arrangement or
        compromise with creditors, bankruptcy or death.

        "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 Financier, Collins Foods Group Pty Ltd
        ACN 009 937 900 and others.

        "PERMITTED SECURITY INTEREST" means:

        (a)    a Security Interest which the Financier has consented to. It does
               not include a Security Interest which the Financier has consented
               to on one or more conditions if those conditions are not complied
               with; and

        (b)    a lien or charge on the Charged Property arising by operation of
               law in the ordinary course of the Chargor's ordinary business. It
               does not include a lien or charge which secures overdue debts.

        "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, a government, a minister of a
        government, a government department, a statutory corporation, or a
        semi-government or judicial entity.

        "RECEIVER" means a receiver or receiver and manager appointed under this
        document. When two or more persons are appointed, the expression
        "Receiver" refers to each of those persons severally as well as to two
        or more of them jointly.

<PAGE>   5
                                       3

        "RECORDS" means all the information which relates in any way to a
        specified person's business or any transaction entered into by the
        person, whether the information is recorded electronically, magnetically
        or otherwise.

        "RELEVANT AGREEMENT" means:

        (a)    this document; and

        (b)    a Collateral Security; and

        (c)    an agreement between:

               (i)    the Financier and the Chargor; or

               (ii)   the Financier and a Debtor; or

               (iii)  the Financier and any combination of the Chargor and one
                      or more Debtors;

               that relates to the Secured Money or another Relevant Agreement
               or contains terms on which the Secured Money remains outstanding;
               and

        (d)    a document that the Chargor and the Financier agree is a Relevant
               Agreement.

        "SECURED MONEY" means all money that the Chargor or a Debtor is liable
        to pay to the Financier at or after the date of this document on any
        account and in any way whatever, and whether:

        (a)    the Chargor or Debtor is liable alone or together with another
               person; or

        (b)    the Chargor or Debtor is liable as principal debtor, surety,
               partner, trustee, beneficiary or otherwise; or

        (c)    the relevant liability:

               (i)    is actual or contingent, ascertained or unascertained,
                      fixed or fluctuating;

               (ii)   is in respect of principal, interest, Guarantee
                      obligations, purchase obligations, fees or damages; or

               (iii)  is in dollars, another currency or a combination of
                      currencies,

               or is of any other character.

        Without limitation, "Secured Money" includes:

        (d)    all Taxes and all reasonable costs and expenses (including, but
               not limited to, legal costs and expenses on a full indemnity
               basis) which the Financier or a Receiver or Attorney pays, or is
               liable to pay, in connection with:

               (i)    a Relevant Agreement, or negotiating, preparing,
                      completing, registering or stamping a Relevant Agreement;
                      or

               (ii)   maintaining, preserving or protecting the Charged
                      Property; or

<PAGE>   6
                                       4

               (iii)  surveying, valuing, inspecting or reporting on the Charged
                      Property; or

               (iv)   obtaining or attempting to obtain payment of the Secured
                      Money from any person; or

               (v)    protecting, enforcing or exercising a right, power or
                      remedy of the Financier or a Receiver or Attorney under or
                      in connection with a Relevant Agreement; or

               (vi)   an Event of Default or Potential Event of Default; or

               (vii)  the Financier providing financial accommodation to or at
                      the request of the Chargor; or

               (viii) a receipt or payment of money under, or a transaction
                      contemplated by, a Relevant Agreement; and

        (e)    interest on all of the foregoing at the rates specified in the
               Relevant Agreements. If no rate is specified, the rate is as
               reasonably determined by the Financier. Interest accrues from day
               to day, computed from the time:

               (i)    the Secured Money became owing (whether or not it is
                      immediately payable); or

               (ii)   in relation to costs and expenses, the relevant amount was
                      incurred.

               Interest on Secured Money may be capitalised monthly or at the
               times agreed between the parties. It then bears interest on
               itself. Interest continues to be payable despite the Winding Up
               of any person, or any judgement obtained against any person.

        "SECURITY INTEREST" means a mortgage, pledge, lien, charge, preferential
        right, trust arrangement, agreement or other arrangement given, arising
        or created as security.

        "TAX" includes a tax, levy, duty or charge (and associated penalty or
        interest) imposed by a Public Authority. It includes income,
        withholding, stamp and transaction taxes and duties but does not include
        income tax on the overall net income of the Financier.

        "WINDING UP" includes:

        (a)    dissolution, liquidation, provisional liquidation and bankruptcy;
               and

        (b)    a procedure which is equivalent or analogous in any jurisdiction.

1.2     OTHER EXPRESSIONS

        In this document, unless the contrary intention appears:

        (a)    the singular includes the plural and vice versa;

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

        (c)    if this document binds two or more persons, it binds them
               severally and jointly;

<PAGE>   7
                                       5

        (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 includes that document or
               agreement as novated, altered or replaced;

        (f)    when two or more persons are named as Chargor, the term "Chargor"
               is a reference to each of them alone and also to any two or more
               of them together. The same applies to the term "Debtor";

        (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)    "dollars" and "$" refer to Australian currency;

        (i)    words implying natural persons include partnerships, bodies
               corporate, associations and Public Authorities;

        (j)    a reference to any legislation or statutory instrument or
               regulation is construed in accordance with the Acts
               Interpretation Act 1901 (Cth) or the equivalent State
               legislation, as applicable.

2.      CHARGE

2.1     CREATING THE CHARGE

        The Chargor charges, pledges and grants a security interest in the
        Charged Property in favour of the Financier as security for the payment
        of the Secured Money.

2.2     FIXED CHARGE

        The Charge is a fixed charge.

2.3     CONTINUING SECURITY AND DISCHARGING THE CHARGE

        The Charge is a continuing security. It remains in effect until the
        Financier gives a final discharge to the Chargor. The Chargor is only
        entitled to a final discharge if:

        (a)    all of the Secured Money has been paid; and

        (b)    the Financier is satisfied that there are no amounts which will
               subsequently fall within the description of the Secured Money.

        In satisfying itself under paragraph (b), the Financier may consider any
        matters it thinks relevant, including (without limitation) the
        possibility that a payment to reduce the Secured Money might be
        repayable, void or voidable under a law relating to insolvency or
        protecting creditors.

2.4     FIRST PRIORITY SECURITY INTEREST

        The Charge is a first charge. With respect to any Charged Property as to
        which the law of any state of the United States of America governs the
        granting, perfection or effect of perfection of a security interest, the
        Charge created hereunder is a first priority perfected security
        interest.

<PAGE>   8
                                       6

3.      [INTENTIONALLY OMITTED]

4.      CHARGOR'S OBLIGATIONS

4.1     POSITIVE OBLIGATIONS

        The Chargor must:

        (a)    pay when due the Taxes assessed, levied or imposed on the Charged
               Property (other than those being contested in good faith) or the
               Financier in connection with the Charged Property; and

        (b)    comply with all laws and with the mandatory requirements of any
               Public Authority concerning the Charged Property except where the
               requirement to do so is being contested in good faith; and

        (c)    operate each Debtor that it owns, directly or indirectly, in a
               manner designed to avoid an Event of Default; and

        (d)    prosecute and defend (at the Chargor's expense) all legal
               proceedings which are advisable, or which the Financier advises
               the Chargor that it considers advisable, to avoid a material
               adverse effect on the Charged Property; and

        (e)    do everything necessary to ensure that the Charged Property at
               all times includes all of the issued and outstanding shares of
               capital stock of SRS, SSEA and SNZ.

4.2     NEGATIVE OBLIGATIONS

        The Chargor must not, without the consent of the Financier:

        (a)    deal with or dispose of the Charged Property; or

        (b)    permit a Security Interest (other than a Permitted Security
               Interest) to affect the Charged Property; or

        (c)    apply for or obtain money, goods or services from a Public
               Authority, fail to pay an amount to a Public Authority (unless
               the Chargor is contesting the liability to pay in good faith and
               has set aside sufficient reserves to meet the liability) or do
               anything else which might lead to a liability or Tax being
               imposed on the Charged Property; or

        (d)    do or allow anything to be done which may (other than in an
               immaterial way) prejudice the Financier"s security or rights
               under a Relevant Agreement.

4.3     OBLIGATIONS CONCERNING CHARGED PROPERTY

        The Chargor must:

        (a)    immediately deposit with the Financier all certificates,
               documents of title or other documents that from time to time
               represent or evidence the Charged Property, endorsed in blank by
               the Chargor by an effective endorsement;

<PAGE>   9
                                       7

        (b)    on demand by the Financier, deposit with it stock powers or
               transfers executed in blank by the Chargor;

        (c)    punctually pay all calls, instalments and other moneys which may
               at any time be payable on any of the Charged Property (other than
               those being contested in good faith) or which, if unpaid, may
               result in the creation of a Security Interest over any of the
               Charged Property;

        (d)    promptly notify the Financier in writing when the Chargor becomes
               entitled to any of the rights or property referred to in
               paragraphs (c) - (f) of the definition of "Charged Property";

        (e)    deliver to the Financier, promptly after receipt by the Chargor,
               a copy of:

               (i)    any notice convening a meeting of the holders of any of
                      the Charged Property; and

               (ii)   any report, accounts, notice or circular issued to the
                      holders of any of the Charged Property;

4.4     OBLIGATIONS CONCERNING VOTING RIGHTS AND DIVIDENDS

        The Chargor:

        (a)    may until an Event of Default or Potential Event of Default
               occurs exercise voting rights conferred upon it as the holder of
               any of the Charged Property, but it must not in doing so permit
               or cause anything to occur that would be an Event of Default or
               Potential Event of Default or otherwise be inconsistent with the
               terms of this document. However, if an Event of Default or
               Potential Event of Default occurs, the Chargor may no longer
               exercise any of those voting rights, except with the prior
               written consent of the Financier; and

        (b)    may, until an Event of Default occurs and subject to paragraph
               (a):

               (i)    acquire any of the rights or property referred to in
                      paragraphs (c) - (f) of the definition of "Charged
                      Property"; and

               (ii)   receive and use in the ordinary course of its business
                      cash dividends payable in relation to the Charged
                      Property.

               However, if an Event of Default occurs:

               (iii)  the Chargor may not do any of the things specified in
                      paragraphs (i) or (ii) and from then on only the
                      Financier, a Receiver or Attorney may do those things; and

               (iv)   the Chargor must (at its cost) do all things necessary to
                      enable the Financier, Receiver or Attorney to do the
                      things specified in paragraphs (i) and (ii); and

        (c)    must immediately pay to the Financier any money it receives in
               connection with the Charged Property (other than dividends
               referred to in paragraph (b)(ii)). The Financier may apply that
               money to reduce the Secured Money in the manner specified in
               clause 16.9.

<PAGE>   10
                                       8

5.      CHARGOR'S REPORTING OBLIGATIONS

5.1     NOTICES TO THE FINANCIER

        The Chargor must notify the Financier as soon as an Authorised Officer
        of the Chargor becomes aware of:

        (a)    an Event of Default or Potential Event of Default; or

        (b)    a representation or warranty in any Relevant Agreement becoming
               materially false or misleading (giving full details); or

        (c)    a material requirement or notice of a Public Authority in
               connection with the Charged Property and must give the Financier
               a copy of any related document it has and full details of all
               relevant facts known to the Chargor concerning the requirement or
               notice; or

        (d)    any other requirement, notice, order or direction relating to the
               Charged Property given to the Chargor and must give to the
               Financier a copy of any related document served on the Chargor,
               giving full particulars of all relevant facts known to the
               Chargor.

6.      ACCESS TO AND INVESTIGATION OF RECORDS

6.1     GIVING ACCESS TO RECORDS

        The Chargor must:

        (a)    ensure that the Records of the Chargor relating to the Charged
               Property are available for inspection at reasonable times by the
               Financier and persons acting on the Financier's behalf; and

        (b)    allow the Financier and persons acting on the Financier's behalf
               to inspect and to take copies of or extracts from the Chargor's
               Records during business hours and give reasonable assistance to
               them.

7.      BETTER SECURITY AND RIGHTS FOR FINANCIER

7.1     BETTER SECURITY AND RIGHTS

        The Chargor must, at the Chargor's cost, do whatever the Financier
        reasonably requires to:

        (a)    more satisfactorily secure the Charged Property as security to
               the Financier for the payment of the Secured Money; or

        (b)    enable the Financier to better exercise its rights over the
               Charged Property,

        and must use its best efforts to make anyone else who has an interest in
        the Charged Property or claims under or in trust for the Chargor do the
        same.

7.2     EXAMPLES

        This includes, but is not limited to:

<PAGE>   11
                                       9

        (a)    executing a further Security Interest (including a legal
               mortgage) over, or other documents relating to, the Charged
               Property; and

        (b)    delivering the stock certificates or other title documents
               representing or evidencing the Charged Property to the Financier,
               endorsed in blank by an effective endorsement, or accompanied by
               a stock power or transfer in blank,

        in a form reasonably satisfactory to the Financier.

8.      REPRESENTATIONS AND WARRANTIES

8.1     THE CHARGOR REPRESENTS AND WARRANTS TO THE FINANCIER THAT:

        (a)    the Chargor was properly incorporated and validly exists; and

        (b)    the Chargor has the power to enter into this document and to
               carry out any transaction or obligation contemplated by it; and

        (c)    all necessary actions have been taken to make this document valid
               and binding on the Chargor and to enable the Chargor to carry out
               any transaction or obligation contemplated by this document; and

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

        (e)    the Chargor executing and performing this document and any other
               Relevant Agreements does not result in a Security Interest (other
               than under a Relevant Agreement) being created or crystallised on
               an asset of the Chargor; and

        (f)    neither this document nor any other Relevant Agreement conflicts
               with the operation or terms of any document or arrangement which
               binds the Chargor; and

        (g)    all information provided to the Financier by or on behalf of the
               Chargor is accurate and not misleading by omission; and

        (h)    the shares comprised in the Charged Property are duly authorised,
               validly existing, fully paid and nonassessable; and

        (i)    it has the right and power to charge the Charged Property in the
               manner set out in this document; and

        (j)    it is the sole legal and beneficial owner of the Charged Property
               and the Charged Property is free from:

               (i)    all Security Interests or third party rights and interests
                      of any kind; and

               (ii)   any restriction on transfer or rights of pre-emption; and

        (k)    the issuance of shares comprised in the Charged Property does not
               contravene any law, rule or directive of any Public Authority or
               of any stock exchange.

8.2     THE REPRESENTATIONS AND WARRANTIES IN THIS CLAUSE ARE REPEATED ON EACH
        DAY ON WHICH THE REPRESENTATIONS AND WARRANTIES IN THE NEGATIVE PLEDGE
        ARE REPEATED.

<PAGE>   12
                                       10

9.      EFFECT OF EVENT OF DEFAULT

        After an Event of Default the Financier may declare the Secured Money
        payable. If so, the Secured Money becomes immediately payable, unless
        the Financier specifies otherwise.

10.     FINANCIER'S POWERS

10.1    GENERALLY

        (a)    After an Event of Default, the Financier may do the things which
               a mortgagee and an absolute owner could do to the Charged
               Property and exercise the rights, powers and remedies of a
               mortgagee and an absolute owner of the Charged Property. These
               include, but are not limited to, the things and powers described
               in this clause 10, and the rights, powers and remedies of a
               secured party under the Uniform Commercial Code of any
               jurisdiction in the United States of America;

        (b)    The Financier need not make a demand or give notice to anyone
               before doing these things or exercising these powers, except if
               notice is required as described in clause 10.10.

10.2    TO TAKE POSSESSION OF CHARGED PROPERTY

        After an Event of Default the Financier may:

        (a)    take possession of the Charged Property; and

        (b)    receive the income, dividends, proceeds and profits from the
               Charged Property.

10.3    TO DEAL WITH THE CHARGED PROPERTY

        After an Event of Default the Financier may do any of the following:

        (a)    (EXERCISE RIGHTS) exercise the rights and powers of an absolute
               owner and do everything expedient in connection with shares,
               securities or other rights which form part of the Charged
               Property. The Chargor appoints the Financier and any Authorised
               Officer of the Financier nominated by the Financier for this
               purpose, severally and jointly, to be the authorised
               representative and proxy of the Chargor to do the things
               described in this paragraph; and

        (b)    (TRANSFERS) complete and procure the registration of any
               transfers or other documents that may have been lodged with the
               Financier in relation to the Charged Property; and

        (c)    (BANK ACCOUNTS) open and operate bank accounts in the name of the
               Chargor (alone or together) to the exclusion of the Chargor; and

        (d)    (CONTRACTUAL RIGHTS)

               (i)    perform the Chargor's obligations under; and

               (ii)   enforce or exercise or not exercise the Chargor's rights
                      and powers under; and

<PAGE>   13
                                       11

               (iii)  agree to vary or rescind,

               a contract, instrument, arrangement or right forming part of the
               Charged Property; and

        (e)    (COMPROMISE) settle, compromise or submit to arbitration a
               dispute in connection with the Charged Property; and

        (f)    (PERFORM CHARGOR'S OBLIGATIONS) do everything it may to comply
               with the obligations of the Chargor under a Relevant Agreement;
               and

        (g)    (REMEDY BREACH) do everything it may to make good a breach or
               default inherent in an Event of Default, to its own satisfaction;
               and

        (h)    (DEPOSIT MONEY IN SUSPENSE OR OTHER ACCOUNTS) invest, deposit or
               hold the Charged Property in any way that, and for as long as,
               the Financier thinks fit and vary, transpose or reinvest the
               Charged Property; and

        (i)    (RECOVER, PROTECT CHARGED PROPERTY) do everything the Financier
               thinks necessary to recover or protect the Charged Property; and

        (j)    (LEGAL PROCEEDINGS) commence, prosecute, defend and settle
               proceedings which the Financier considers expedient in connection
               with this document or the Charged Property in or before a Public
               Authority in the name of the Chargor or otherwise; and

        (k)    (EXCHANGE) exchange the Charged Property for any other property
               or rights (with or without giving or receiving any other
               consideration for the exchange); and

        (l)    (TRANSFER OBLIGATIONS) effect a novation of or otherwise transfer
               to any person obligations of the Chargor which arise under a
               Relevant Agreement or otherwise; and

        (m)    (IMPROVE CHARGED PROPERTY) do anything which the Financier
               considers would help improve the value of the Charged Property,
               obtain income or returns from it or make it saleable or more
               saleable. Without limitation, the Financier may improve or alter
               the Charged Property, acquire additional property in the name of
               the Chargor and undertake any marketing or publicity campaign;
               and

        (n)    (EXECUTE DOCUMENTS) enter into agreements and execute documents
               itself or on behalf of the Chargor for any purpose in connection
               with the Charged Property; and

        (o)    (BORROW, SECURE) in the name of the Chargor or otherwise:

               (i)    obtain financial accommodation (including, but not limited
                      to, from a party associated with the Financier) for any
                      purpose which the Financier considers expedient in
                      connection with the Charged Property; and

               (ii)   secure the payment or repayment of indebtedness relating
                      to that financial accommodation by a Security Interest
                      over the Charged

<PAGE>   14
                                       12

                      Property, however it ranks for priority with the Charge or
                      a Collateral Security; and

        (p)    (EMPLOY AND APPOINT PERSONS) employ staff and appoint
               professionals and consultants for any purpose, and at the
               remuneration, that the Financier thinks fit; and

        (q)    (DELEGATE) delegate to any person for any time that the Financier
               thinks fit any of the powers of the Financier under this
               document, including this right of delegation; and

        (r)    (INCIDENTAL POWER) do anything the Financier thinks expedient in
               its interests and incidental to any of its powers under this
               document, without limiting those powers; and

        (s)    (SPEND MONEY) spend money in exercising its powers in this
               document. That money then forms part of the Secured Money.

10.4    TO DISCHARGE OR ACQUIRE PRIOR SECURITY

        After an Event of Default the Financier may:

        (a)    purchase the debt secured by a prior Security Interest; or

        (b)    pay the amount required to discharge or satisfy that debt
               (including, but not limited to, a debt secured by a Permitted
               Security Interest); or

        (c)    take a transfer or assignment of that Security Interest and any
               Guarantee, document or right ancillary or collateral to it.

10.5    EXERCISE OF RIGHTS UNDER CLAUSE 10.4

        If the Financier exercises its rights under clause 10.4:

        (a)    the Charged Property is security for the same amount paid by the
               Financier. This does not limit any other debt acquired by the
               Financier; and

        (b)    that debt is immediately payable to the Financier and forms part
               of the Secured Money and interest accrues on the unpaid amount of
               that debt under clause 3.2; and

        (c)    the Financier need not enquire whether the money claimed to be
               owing is actually owing in connection with the prior Security
               Interest, or an ancillary or collateral document; and

        (d)    the person with the benefit of the prior Security Interest need
               not enquire whether there is any money owing under a Relevant
               Agreement; and

        (e)    the Chargor directs any person with the benefit of a prior
               Security Interest to give the Financier any information it
               requires in connection with the prior Security Interest. This
               includes, but is not limited to, the state of accounts for that
               Security Interest.

<PAGE>   15
                                       13

10.6    TO SELL AND GIVE OPTIONS

        After an Event of Default the Financier may do any of the following:

        (a)    (SELL) sell or help sell the Charged Property on the terms and in
               the manner it thinks fit, whether or not the Financier has taken
               possession; and

        (b)    (OPTIONS) give an option to purchase the Charged Property on the
               terms it thinks fit; and

        (c)    (SELL TOGETHER WITH OTHER PROPERTY) sell the Charged Property
               with any other property in any manner that the Financier thinks
               expedient; and

        (d)    (HIVE OFF ASSETS OR OBLIGATIONS) promote the formation of any
               company so that the company may purchase or acquire the Charged
               Property or assume obligations of the Chargor or both; and

        (e)    (EFFECT HIVE-OFF) sell or assign the Charged Property or assume
               the Chargor's obligations.

10.7    TO APPOINT RECEIVERS

        After an Event of Default, the Financier may:

        (a)    appoint one or more persons to be a Receiver or Receivers of the
               Charged Property, with the powers and rights described in this
               clause 10 (or such lesser powers as the Financier determines);
               and

        (b)    remove that Receiver or those Receivers; and

        (c)    if a Receiver is removed, retires or dies, appoint another or
               others in his or her place; and

        (d)    in the case of removal or retirement of a Receiver, reappoint
               that person.

10.8    TO APPOINT MORE THAN ONE RECEIVER

        If the Financier appoints two or more persons to be the Receiver, the
        Financier may appoint them to act jointly, severally or jointly and
        severally. If it is not specified in the instrument of appointment, the
        Receivers are appointed to act severally.

10.9    TO PAY THE RECEIVER

        The Financier may fix the remuneration of a Receiver at an amount agreed
        between the Financier and the Receiver.

10.10   NOTICE OR LAPSE OF TIME REQUIRED BEFORE RIGHTS EXERCISED

        (a)    If notice or lapse of time is required under any statute before
               the Financier can exercise its power of sale or any other rights
               available to it under this document or by law, then that notice
               or lapse of time is dispensed with.

        (b)    Paragraph (a) only applies if the relevant statute allows notice
               or lapse of time to be dispensed with.

<PAGE>   16
                                       14

        (c)    If the relevant statute does not allow notice or lapse of time to
               be dispensed with, but allows it to be shortened, then for the
               purposes of this document, the period of notice or lapse of time
               is one day.

10.11   TO GIVE UP POSSESSION AND TERMINATE RECEIVERSHIP

        The Financier may:

        (a)    give up possession of the whole or any part of the Charged
               Property; or

        (b)    terminate a receivership,

        or both.

10.12   PERSONS DEALING NOT BOUND TO ENQUIRE

        A person dealing with the Financier or a Receiver or Attorney:

        (a)    need not enquire whether there has been a default by the Chargor
               under a Relevant Agreement or whether the Financier, Receiver or
               Attorney has acted properly; or

        (b)    need not enquire whether the Financier, a Receiver or an Attorney
               has executed or registered an instrument or exercised a right,
               power or remedy properly or with authority,

        and whenever the Financier, a Receiver or an Attorney deals with the
        Charged Property, that dealing is authorised and valid as far as anyone
        involved with that dealing is concerned. The receipt of the Financier or
        a Receiver or Attorney for any money payable to the Chargor discharges
        the person paying that money to the extent of the payment.

10.13   RESPONSIBILITY FOR LOSS

        The Financier is not responsible for a loss arising in connection with
        it exercising or failing to exercise its powers under a Relevant
        Agreement nor for an act or failure of an employee or agent of the
        Financier or any Receiver. The Financier need not account for more money
        than it actually receives.

11.     RECEIVER'S POWERS

11.1    GENERAL

        Unless the terms of the Receiver's appointment say otherwise, the
        Receiver has the following powers over the Charged Property which the
        Receiver is appointed to deal with:

        (a)    all the rights and powers given by law to mortgagees in
               possession, receivers or receivers and managers; and

        (b)    all the rights and powers of the Financier under this document
               and at law (other than the power to appoint Receivers); and

<PAGE>   17
                                       15

        (c)    power to obtain financial accommodation from the Financier, alone
               or together with any other person, for a purpose and on the terms
               that the Receiver considers expedient in connection with the
               Charged Property; and

        (d)    power to secure the payment or repayment of indebtedness relating
               to that financial accommodation by a Security Interest over the
               Charged Property, however it ranks for priority with the Charge
               or a Collateral Security.

        The Receiver may exercise these rights and powers in the name of the
        Chargor or otherwise.

11.2    RECEIVER IS AGENT OF CHARGOR

        A Receiver is the agent of the Chargor. The Chargor alone is responsible
        for the Receiver's acts and defaults. But the Receiver, to the extent
        required by law, ceases to be the agent of the Chargor if a resolution
        is passed or an order is made to Wind Up the Chargor. The Receiver may
        become the agent of the Financier if the Financier gives a notice to the
        Receiver in writing to that effect. The Financier may appoint a further
        Receiver, despite that resolution or order.

11.3    ACCOUNTABILITY OF RECEIVER

        A Receiver is not responsible for a loss arising in connection with the
        exercise or execution of the Receiver's powers, nor for any act or
        default of an employee or agent of the Financier or the Receiver. A
        Receiver need not account for more money than the Receiver actually
        receives.

12.     POWER OF ATTORNEY

12.1    APPOINTMENT AND POWERS

        The Chargor for valuable consideration irrevocably appoints the
        Financier, each Authorised Officer of the Financier and each Receiver
        separately as its attorneys to do the following on the Chargor's behalf
        and in the name of the Chargor or the Attorney after the occurrence of
        an Event of Default or Potential Event of Default:

        (a)    anything which the Chargor must do under a Relevant Agreement;
               and

        (b)    anything which, in the opinion of the Attorney:

               (i)    would give effect to a right, power or remedy of the
                      Financier or a Receiver; or

               (ii)   the Chargor should do,

               under a Relevant Agreement or by law; and

        (c)    enter into or execute transactions, documents and agreements
               which, in the opinion of the Attorney, the Chargor should enter
               into or execute under a Relevant Agreement; and

        (d)    use the Chargor's name to exercise the powers of the Financier or
               a Receiver under a Relevant Agreement, the law or otherwise; and

<PAGE>   18
                                       16

        (e)    obtain the issue of duplicate certificates for the shares,
               securities or other rights comprised in the Charged Property if
               the original certificates are lost or destroyed or believed to be
               so; and

        (f)    direct payment or any delivery of a dividend, notice, scrip or
               attend to any other matter relating to the Charged Property; and

        (g)    give any direction or instruction to any person that the attorney
               reasonably considers is necessary or desirable to better secure
               the Charged Property to the Financier or to permit or facilitate
               the exercise or preservation of a right or power of the Financier
               under a Relevant Agreement; and

        (h)    perfect a security given by the Chargor in favour of the
               Financier over the Charged Property; and

        (i)    exercise voting rights or any other power, right or remedy
               relating to the Charged Property,

        and the Chargor agrees to ratify anything done by an Attorney under this
        power of attorney.

12.2    ATTORNEY MAY DELEGATE POWERS

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

12.3    PURPOSE

        The power of attorney created under this clause is irrevocable and is
        granted to secure the performance by the Chargor of the Chargor's
        obligations under each Relevant Agreement to which the Chargor is a
        party.

13.     NOTICES AND DEMANDS FROM THE FINANCIER

13.1    SIGNING

        A notice from or demand by the Financier to or on the Chargor may be
        signed by an Authorised Officer of the Financier or by a solicitor
        acting for the Financier. This signature may be handwritten or printed
        or reproduced by other means.

13.2    SENDING

        In addition to any method of service provided for by statute, a notice
        from or demand by the Financier is given to or made on the Chargor if it
        is:

        (a)    sent by facsimile to the facsimile number of the Chargor last
               known to the Financier or, if more than one facsimile number is
               known to the Financier, to any of those facsimile numbers; or

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

               (i)    the address of the Chargor set out in this document; or

               (ii)   the Chargor's usual place of business last known to the
                      Financier; or

<PAGE>   19
                                       17

               (iii)  the Chargor's registered office; or

               (iv)   premises owned or occupied by the Chargor.

13.3    VALIDITY

        A notice or demand is validly given even if:

        (a)    the Chargor has been Wound Up or the Chargor is absent from the
               place the notice or demand is left at, or delivered or sent to;
               or

        (b)    the notice or demand is returned unclaimed.

13.4    RECEIPT

        A notice or demand is taken to have been received by the Chargor:

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

        (b)    if posted to an address in Australia, on the second Business Day
               after it was posted; and

        (c)    if posted to an address outside Australia, on the fourth Business
               Day after it was posted; and

        (d)    if sent by facsimile, when a transmission report is produced by
               the sender's facsimile machine indicating that the notice or
               demand has been sent to the relevant number.

14.     PRESERVING THE FINANCIER'S RIGHTS, POWERS AND REMEDIES

14.1    PRESERVATION

        (a)    The fact that the Financier does not exercise, or delays the
               exercise of, any right, power or remedy does not affect any of
               its other rights, powers or remedies.

        (b)    The fact that the Financier delays the exercise of any right,
               power or remedy does not constitute a waiver of that right, power
               or remedy.

        (c)    The fact that the Financier exercises a right, power or remedy
               does not prevent the Financier from exercising that right, power
               or remedy again.

        (d)    This document does not operate to extinguish or prejudice any
               right, power or remedy of the Financier under a Relevant
               Agreement or in connection with the Secured Money.

14.2    MORATORIUM LEGISLATION

        A moratorium does not apply to a Relevant Agreement or the recovery of
        the Secured Money except if:

        (a)    the Financier agrees in writing that it does; or

        (b)    it cannot be excluded by law.

<PAGE>   20
                                       18

14.3    REINSTATING OR REPLACING RIGHTS

        If any payment made to the Financier in reduction of the Secured Money
        is repaid or void or conceded to be void, voidable or repayable for any
        reason, then, despite any release, settlement or discharge in connection
        with the Secured Money:

        (a)    that payment has not discharged the relevant liability; and

        (b)    the Financier may recover the amount of that payment from the
               Charged Property; and

        (c)    the Chargor must immediately do all acts and things the Financier
               requires to replace or reinstate the Charge and any Collateral
               Security which has been released in connection with that payment.

14.4    EFFECT OF RELEASE

        (a)    A full or partial release of this Charge by the Financier does
               not release the Charged Property under this document until the
               Financier receives the Secured Money, regardless of any:

               (i)    receipt given, payout figure quoted or other form of
                      account stated; or

               (ii)   error or miscalculation by the Financier.

15.     THIRD PARTY PROVISIONS

15.1    INDEPENDENT SECURITY

        Neither this document nor the obligations of the Chargor under this
        document will be abrogated, prejudiced or affected by:

        (a)    the granting of time or any other indulgence, consideration or
               concession to the Chargor, a Debtor or any other person;

        (b)    the release, discharge, abandonment, waiver, loss, impairment,
               relinquishment, transfer or other dealing with (either in whole
               or in part and whether with or without consideration) any
               Relevant Agreement or any right of the Financier against the
               Chargor, a Debtor or any other person;

        (c)    any transaction or arrangement that may take place between the
               Financier and a Debtor or any other person;

        (d)    the Financier varying, exchanging, renewing or releasing any
               Relevant Agreement or refusing to do so;

        (e)    any variation of a transaction, arrangement or document between
               the Financier and any other person (including, but not limited to
               any increase in the amount of financial accommodation provided or
               agreed to be provided to any Debtor);

        (f)    the capitalising and adding to principal of all interest accrued
               on the Secured Money (or any part of the Secured Money) but not
               yet paid;

        (g)    any Collateral Security or right which the Financier now holds or
               in the future may obtain;

<PAGE>   21
                                       19

        (h)    the Financier failing or neglecting to recover any of the Secured
               Money by the realisation of any Collateral Security or otherwise;

        (i)    any laches, acquiescence, delay, and omission or mistake on the
               part of the Financier or any other person;

        (j)    the insolvency, Winding Up or incapacity or change in the legal
               capacity of the Chargor or a Debtor;

        (k)    any judgment or order against the Chargor, a Debtor or other
               person;

        (l)    any lack of power by the Chargor or a Debtor to enter into any
               Relevant Agreement or give any Collateral Security either in its
               own right or in the capacity in which it is purporting to act;

        (m)    the liability of the Chargor, a Debtor or any other person to the
               Financier ceasing from any cause (including but not limited to
               being released or discharged by the Financier);

        (n)    any Collateral Security or any other security taken or held at
               any time by the Financier being in whole or in part void,
               defective in form or substance or unenforceable;

        (o)    property secured under a Collateral Security being destroyed,
               forfeited, extinguished, surrendered, resumed or determined;

        (p)    any impossibility or illegality of performance of any Relevant
               Agreement or any provision of any Relevant Agreement;

        (q)    any default, misrepresentation, negligence, misconduct or other
               action or inaction of any kind by any person;

        (r)    any irregularity or deficiency in the execution of this document
               or any Collateral Security by the Chargor or any Debtor or any
               lack of authority or power of any person in relation to such
               execution;

        (s)    the failure to give notice to, or the lack of consent of the
               Chargor or a Debtor before or after the happening of any of the
               acts or events mentioned in this subclause or before the making
               of any agreement or transaction between the Financier and the
               Chargor, a Debtor or other person;

        (t)    any other dealing, matter or thing which, but for this provision
               could or might operate to affect or discharge the liability of
               the Charged Property under this document.

15.2    NO OBLIGATION TO PROCEED

        The Financier will not be required to proceed against any Debtor or
        exhaust any remedies it may have against any Debtor or enforce any
        Collateral Security but shall be entitled to demand and receive payment
        from any Debtor or realise upon the Charged Property when any payment is
        due under any Relevant Agreement and whether due from that person or
        not.

<PAGE>   22
                                       20

15.3    NO OBLIGATION TO MARSHAL

        The Financier will not be obliged to marshal in favour of the Chargor
        any security held by the Financier or any funds or assets that the
        Financier may be entitled to receive or have a claim upon.

15.4    WINDING UP OF DEBTOR

        On the Winding Up of any Debtor the Chargor authorises the Financier:

        (a)    to prove for all money which has been paid under any Relevant
               Agreement; and

        (b)    to retain and to carry to a suspense account and appropriate at
               the Financier's discretion any dividends received;

        until the Financier has been paid in full.

15.5    EXCLUSION OF RIGHTS

        The Chargor must not:

        (a)    until the Financier has received all the Secured Money and the
               Financier is satisfied that it will not have to repay any money
               received by it in connection with the Secured Money (either
               directly or indirectly):

               (i)    claim or exercise any right of set-off, counter-claim or
                      other right or release at law or in equity which has or
                      might have the effect of reducing or discharging the
                      Secured Money;

               (ii)   claim or exercise any right of subrogation or otherwise
                      claim the benefit of any Collateral Security;

               (iii)  prove or claim in the liquidation or bankruptcy of any
                      Debtor in competition with the Financier or otherwise
                      claim or receive the benefit of any distribution, dividend
                      or payment arising out of the liquidation or bankruptcy of
                      a Debtor; or

               (iv)   claim or recover any sum paid by the Chargor pursuant to
                      this document from any person or commence any action in
                      respect of any right which may accrue to the Chargor in
                      respect of sums paid by the Chargor under this document;
                      or

        (b)    whether or not the Secured Money has been paid in full call upon
               the Financier to sue or take proceedings against any Debtor or
               raise a defence, set-off or counter-claim of itself or any Debtor
               in reduction of its liability under this document.

16.     MISCELLANEOUS

16.1    NO OBLIGATION TO EXERCISE RIGHTS OR GIVE CONSENT

        Each of the Financier and a Receiver may:

        (a)    exercise or not exercise any right, power or remedy; and

<PAGE>   23
                                       21

        (b)    give or not give consent; and

        (c)    make or not make a decision,

        under this document, in its absolute discretion without giving a reason
        and without being liable or accountable for the consequences. In
        relation to the giving or not giving of consent, the Financier will act
        in a manner which the Financier determines in its absolute discretion to
        be reasonable. Such determination shall not be questioned by the
        Chargor.

16.2    CONSENT MUST BE IN WRITING

        A consent given or a right, power or remedy waived by the Financier is
        effective only if given or waived in writing.

16.3    NOTIFICATION FROM CHARGOR

        If the Chargor is required under this document to notify the Financier
        about anything, the Chargor must do so in writing.

16.4    FINANCIER MAY SET OFF

        Without any demand or notice, the Financier may set off and apply
        indebtedness it owes to the Chargor (whatever the currency) against the
        Secured Money:

        (a)    whether the indebtedness is owed alone or with any other person;
               and

        (b)    whether or not the Secured Money or that indebtedness is
               immediately payable.

16.5    CHARGOR MUST NOT SET OFF

        The Chargor must not claim, exercise or attempt to exercise a right of
        set-off or any other right which might reduce or discharge the Secured
        Money.

16.6    NO MARSHALLING

        The Financier need not resort to a Collateral Security or other Security
        Interest before exercising a power under this document.

16.7    SUSPENSE ACCOUNT

        The Financier may credit money received in or towards satisfaction of
        the Secured Money to a suspense account. The Financier may keep the
        money in that account for as long as the Financier thinks fit. Interest
        will not accrue on such account. The Financier may apply the money to
        reduce the Secured Money whenever it thinks fit.

16.8    SURPLUS PROCEEDS

        If surplus money remains in the hands of the Financier or a Receiver
        after payment of all the Secured Money (and satisfaction of any
        obligation ranking in priority to the Secured Money or secured by a
        Security Interest over the Charged Property):

        (a)    no trust arises over that surplus money; and

<PAGE>   24
                                       22

        (b)    that surplus money does not carry interest and the Financier or
               Receiver may pay it to an account in the name of the Chargor
               (whether or not opened by the Financier or Receiver for that
               purpose). The Financier or Receiver is then no longer liable for
               the surplus money.

16.9    APPLYING RECEIPTS

        The Financier may apply or appropriate money received to reduce the
        Secured Money in the order, and to satisfy whatever part of the Secured
        Money, the Financier sees fit.

16.10   TACKING

        For the purpose of applying section 282 of the Corporations Law or any
        equivalent provision in any jurisdiction, if the Financier is obliged to
        make further advances under a Relevant Agreement, that Relevant
        Agreement is taken to be incorporated in this document so that this
        document imposes on the Financier an obligation to advance that money.

16.11   THE FINANCIER MAY ASSIGN RIGHTS

        The Financier may assign or otherwise deal with its rights and benefits
        under this document.

16.12   THE FINANCIER MAY DISCLOSE INFORMATION

        The Financier may disclose to a potential assignee or participant any
        information about the Chargor, any Debtor or a Relevant Agreement which
        it considers appropriate.

16.13   CERTAIN NOTICES OR DEMANDS

        A notice from or demand by the Financier stating:

        (a)    that a specified sum of money is owing or payable (or both) under
               a Relevant Agreement; or

        (b)    that an Event of Default has occurred; or

        (c)    something relevant to the rights or obligations of the Financier
               or the Chargor under a Relevant Agreement,

        is admissible in proceedings and is conclusive evidence of the matters
        stated except if there is manifest error.

16.14   IF DUE DATE NOT A BUSINESS DAY

        If anything should be done under this document on a day that is not a
        Business Day, it must be done on the previous Business Day.

16.15   SEVERABILITY

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

        (b)    If, despite the application of paragraph (a), a provision of this
               document is illegal or unenforceable:

<PAGE>   25
                                       23

               (i)    and it would be legal and enforceable if a word or words
                      were omitted, that word or those words are severed; and

               (ii)   in any other case, the whole provision is severed,

               and the remainder of this document continues in force.

16.16   GOVERNING LAW AND JURISDICTION

        This document is governed by the law of Queensland except:

        (a)    as required by mandatory provisions of law; and

        (b)    to the extent that the validity, perfection or enforceability of
               any of the security interests hereunder, or remedies hereunder,
               are dependent on the laws of a jurisdiction other than
               Queensland, in which case the governing law shall (to that extent
               only) be the law of that jurisdiction.

        The parties hereto agree and intend that:

        (c)    a proper forum/jurisdiction for any litigation or process arising
               out of or related to this Agreement shall be any court located in
               Queensland; and

        (d)    a proper forum/jurisdiction for any litigation or process in
               respect of any of the Charged Property located in a jurisdiction
               other than Queensland shall be any court located either in
               Queensland or that other jurisdiction.

        The Chargor irrevocably and unconditionally submits to the non-exclusive
        jurisdiction of the courts of Queensland and/or the other jurisdiction
        referred to in paragraph (d) (as the case may be). The Chargor, to the
        extent permitted by applicable laws, hereby expressly waives any defence
        or objection to jurisdiction or venue based on the doctrine of forum non
        conveniens, and stipulates that the courts of Queensland and/or that
        other jurisdiction (as the case may be) shall have in personam
        jurisdiction and venue over it for the purpose of any such litigation or
        process arising out of or related to this document.

16.17   AGENT FOR SERVICE OF PROCESS

        The Chargor, having its registered office outside Queensland:

        (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)    failure by CRM to notify to 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.

<PAGE>   26
                                       24

16.18   FINANCIER NEED NOT EXECUTE

        This document is enforceable by the Financier even if the Financier does
        not execute it.

EXECUTED as a deed.

THE COMMON SEAL of SIZZLER           )
ASIA HOLDINGS, INC. is affixed in    )
accordance with its articles of      )
association in the presence of       )

Witness                                       Director/Authorised Officer

Name (print)                                  Name  (print)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]