Document:

EXHIBIT 10.54

[LOGO OF SMART & FINAL]

MEMO

DATE:     May 31, 2001

TO:       Marty Lynch
          Executive Vice President & Chief Financial Officer

FROM:     Ross Roeder
          Chairman & Chief Executive Officer

SUBJECT:  Succession Planning Terms and Consulting Agreement

This purpose of this memorandum is to document the agreement between you and
Smart & Final Inc. ("Company") regarding certain terms relating to your
employment with the Company.

You have communicated your desire to retire from your current position as
Executive Vice President and Chief Financial Officer.  You have also assisted in
the search for and transition to a new Chief Financial Officer.  The following
terms have been mutually agreed upon as additions or amendments to your
Employment Agreement dated April 1, 1997 and as amended ("Employment Agreement")
with the Company:

     1.   Your service as Chief Financial Officer of the Company and your
          positions as corporate officer and/or director of Company subsidiaries
          terminated on May 23, 2001.

     2.   Your service as Executive Vice President of the Company will cease as
          of May 31, 2001.

     3.   In consideration of your services rendered during fiscal year 2000,
          you have received a performance-based bonus of $100,000.00, paid on
          March 15, 2001. It is understood that you will not thereafter be
          eligible for any additional payments under the Company's Annual
          Incentive (Bonus) Plan.

     4.   Your accrued but unpaid vacation time is agreed to be $62,965.95 as of
          May 31, 2001. As soon as practicable after May 31, 2001, this amount
          will be paid to you less standard payroll deductions, and you agree
          that irrespective of any future service to the Company, that no
          additional vacation time shall thereafter accrue.

     5.   In consideration of your Employment Agreement and in consideration of
          your future consulting service below, you will receive 24 months of
          severance payments commencing June 1, 2001, at your current annual
          rate of pay of $335,000, according to the Company's standard payroll
          practices. Payment of severance payments will continue in the event
          that you are incapacitated or die during the Consulting Term as
          defined below.

     6.   Commencing June 1, 2001 you have agreed to serve as a consultant to
          the Company for a period of 24 months (the "Consulting Term"). In such
          capacity you have agreed to hold yourself available to render
          consultation and advice to the Company in regard to all aspects of the
          business. In consideration of your availability for consulting during
          the Consulting Term, you will receive a consulting retainer of $13,500
          per month (payable according to the
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Marty Lynch - Succession and Consulting
May 31, 2000
Page 2

          Company's standard payroll practices) in addition to the severance
          payments under Paragraph 5 above. Payment of retainer fees will
          continue in the event that you are incapacitated or die during the
          Consulting Term.

     7.   During the Consulting Term, it is understood that you will remain
          reasonably available for consultation at your residence by telephone
          and correspondence. It is expressly understood that you may be away
          from your residence for extended periods, but where it is practicable,
          you will endeavor to remain available by telephone.

     8.   During the Consulting Term, if your services are requested by the
          Company at the Company's offices or at such other location as may be
          designated by the Company and you agree, the Company agrees to pay you
          an additional consulting fee on an hourly or per diem basis, including
          necessary travel time, with such fee to be negotiated in advance
          between the parties. The Company agrees to provide you with reasonable
          notice of such requests and if such request cannot be accommodated by
          you, you may decline such request without prejudice to any right to
          payment for other sums due herein. Unless otherwise agreed by you, the
          maximum consulting services required in any one calendar month shall
          be ten hours.

     9.   All of your expenses reasonably incurred by you in the performance of
          your consulting duties for the Company during the Consulting Term,
          including but not limited to travel and lodging expenses, shall be
          promptly reimbursed by the Company.

     10.  During the Consulting Term, you will not, without prior consent of the
          Chief Executive Officer of the Company, directly or indirectly render
          any material services to any other person, business, or entity that is
          in a materially competitive position with the Company or the Company's
          businesses (as described in the Company's Report on Form 10-K for the
          fiscal year ended December 31, 2000). In the event that the Chief
          Executive Officer of the Company does not grant consent, you have the
          right to appeal such decision to the Compensation Committee of the
          Board of Directors, whose majority decision shall be binding upon all
          parties. This provision, in no way limits your rights to provide
          services for compensation or otherwise to persons or firms that do not
          compete with the Company.

     11.  In addition, throughout the term of the Consulting Agreement, you will
          continue to receive all other benefits under the Employment Agreement,
          and any and all plans, arrangements and agreements under which you are
          currently afforded benefits (collectively, the "Lynch Agreements"),
          except as provided in Paragraphs 3 and 4 above. The Lynch Agreements
          include, but are not limited to, your deferred compensation agreements
          dated April 15, 1992 and March 31, 1994, as amended, and the
          Supplemental Executive Retirement Plan ("SERP"). All consulting
          retainer payments and other consulting fees referred to herein, with
          the exception of reimbursement for expenses, will be treated as
          eligible compensation for purposes of determining benefits under the
          deferred compensation and SERP agreements.

     12.  It is expressly acknowledged that at retirement you will be fully
          vested in the SERP, with a retirement benefit commencing no later than
          June 1, 2003 and payable on a 75% joint-and-survivor annuity basis
          where the annual annuity payment shall not be less than $201,269. The
          Company agrees that this annual SERP benefit amount shall be increased
          in respect
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Marty Lynch - Succession and Consulting
May 31, 2000
Page 3

          of any additional consulting fees which may be paid under Paragraph 8
          above, in an amount of additional SERP benefit to be agreed in advance
          between the parties.

     13.  If not sooner vested, the Company shall cause all of your stock
          options, restricted stock, and other equity benefits (collectively
          "Equity Benefits") to fully vest on June 1, 2003. Equity Benefits will
          remain exercisable for a three-year period thereafter. Until June 1,
          2003 you will receive the benefit of any modifications or adjustments
          to any such Equity Benefits offered generally to other executive
          officers of the Company, but it is understood that you will not be
          eligible to participate in any new equity benefits which may be
          granted subsequent to May 31, 2001.

     14.  In all other respects, the Lynch Agreements shall remain unmodified
          and in full force and effect.

     15.  The consulting services listed hereunder in Paragraphs 6 through and
          including 10 may be assigned by you to a professional service
          organization in which you own a controlling interest, provided that
          the consulting services will be performed by you personally.
          Notwithstanding any such assignment, you agree that failure of a
          professional service organization to perform such services shall have
          the same legal effect as if you had failed to personally perform such
          service.

Except as modified by this amendment, in all other respects the Employment
Agreement and all other existing agreements dealing with employment matters
between you and the Company will remain unmodified and in full force and effect.

Marty, we are pleased with your assistance in the mutually agreeable transition
to a new Chief Financial Officer.  Your flexibility and cooperation are greatly
appreciated.

If you agree that the above represents our understanding, please indicate this
by your signature below.

For Smart & Final Inc:

/s/ Ross E. Roeder
------------------------------------
Ross E. Roeder
Chairman and Chief Executive Officer

Agreed and Accepted:

/s/ Martin A. Lynch
------------------------------------
Martin A. Lynch<PAGE>

                                                                   Exhibit 10.44
                                STAY BONUS PLAN
                                      OF
                          COLLINS FOODS GROUP PTY LTD
                                ACN 009 937 900

INTRODUCTION

Collins Foods Group Pty Ltd (the Company) wishes to establish the Stay Bonus
Plan (the Plan), as an incentive for members of the Senior Management Group to
remain fully committed to the Company. Payment of the Stay Bonus to senior
management personnel will further their opportunities to share in the future
growth, prosperity and profitability of the Company on the basis set out below.

DEFINITIONS

As used in this Plan, the following terms shall have the meanings indicated:-

Allocated Proportion means, with respect to any member of the Senior Management
Group, the proportionate amount appearing next to each person's name in Clause 1
below.

Australian Management Group (AMG) consists of the Senior Management Group and
the Selected Employees and AMG Member refers to any individual specified herein
as a member of any such group.

Business means the KFC Restaurant business in Queensland and the Sizzler
Restaurant business in Australia, which are conducted by the subsidiaries of the
Company.

Collins Foods Share Option Plan means the plan which has been adopted by the
Company pursuant to which members of the Australian Management Group will have
the opportunity to exercise options for the purchase of shares in the Company.

Commencement Date means August 21, 2000, being the effective date of the
restructure of the Collins Foods Group in Australia.

Directors means the Directors of the Company as appointed from time to time, but
as at the Commencement Date means Kevin Perkins, Lynne Grace and James Ryan.

Dollar or $ sign references in this Plan refer to Australian dollars.

Selected Employees means those district managers and head office personnel as
are selected by the Senior Management Group to participate in AMG.

Senior Management Group means Kevin Perkins, Lynne Grace, James Ryan, Simon
Perkins, Ross Brown, John Hands, Pam Martin, James Misakian, David Nash and
Jeremy Ryland.

SII means Sizzler International, Inc., the ultimate parent company.

Stay Bonus means an amount not exceeding $1,384,000 payable to qualified members
of the Senior Management Group, in the Allocated Proportions.

Trigger Event means either of the following:-

(a)  A change in control of the Company (other than as a result of any change in
     the beneficial ownership of SII itself) as the result of a transaction
     where shares representing 50% or
<PAGE>

     more of the voting power of the Company are transferred to an entity which
     is not affiliated with SII, otherwise than for the purposes of an internal
     corporate restructure; or

(b)  A sale of all or substantially all the Company's business assets, otherwise
     than for the purposes of an internal corporate restructure

but does not include reference to a collateralisation of the Business or a
charge over the Company's stock as part of a bona fide financing or refinancing
transaction.

TERMS AND CONDITIONS

The Stay Bonus will be paid by the Company on the following terms and
conditions:-

1.   Eligibility

The Directors of the Company believe that each member of the Senior Management
Group has a significant role in the continued development of the business of the
Company. The Stay Bonus will be paid to the members of the Senior Management
Group in the Allocated Proportion set out below opposite their names:

                  -------------------- ----------------------
                    Kevin Perkins              $691,999
                  -------------------- ----------------------
                    Lynne Grace                $119,947
                  -------------------- ----------------------
                    James Ryan                 $119,947
                  -------------------- ----------------------
                    Simon Perkins              $119,947
                  -------------------- ----------------------
                    Ross Brown                 $ 64,587
                  -------------------- ----------------------
                    John Hands                 $ 64,587
                  -------------------- ----------------------
                    Pam Martin                 $ 46,133
                  -------------------- ----------------------
                    James Misakian             $ 64,587
                  -------------------- ----------------------
                    David Nash                 $ 46,133
                  -------------------- ----------------------
                    Jeremy Ryland              $ 46,133
                  -------------------- ----------------------

2.   Qualification Period

The nominated proportion of the Stay Bonus will only be paid to those members of
the Senior Management Group who complete 3 years of continuous service from the
Commencement Date of the Plan. In the event that any member of the Senior
Management Group:-

(a)  does not remain in the employment of the Company for the 3 year
     qualification period; or

(b)  allows an option to expire or become subject to termination prior to
     exercise

that member shall forfeit his/her entitlement to the payment of the bonus, and
the total amount of the Stay Bonus payable by the Company will reduce by the
relevant Allocated Proportion.
<PAGE>

Nothing contained in this Plan should be construed as a commitment by the
Company, express or implied, as to continued employment of any person eligible
for a bonus payment.

3.   Early Payment of the Stay Bonus

The Stay Bonus may only be paid to the members of the Senior Management Group on
a date prior to August 20, 2003 if a Trigger Event occurs.

4.   Payment of Income Tax

The Company shall only be required to pay the Stay Bonus to members of the
Senior Management Group after deduction of group tax payments, or other relevant
forms of income tax, which may apply to such payments.

5.   Application of Payment

The amount received by each member of the Senior Management Group, after
deduction of income tax instalments, may only be used as a contribution towards
payment of an amount required to be paid on exercise of the options granted in
favour of each of them under the provisions of the Collins Foods Share Option
Plan.

Each member of the Senior Management Group hereby authorises the Company to
apply the Stay Bonus in partial payment of the option exercise price.

6.   Amendments to The Plan

Any amendment to the Terms and Conditions of the Plan shall be submitted by the
Directors to a meeting of shareholders for approval by special resolution.

7.   Powers of the Directors

The Plan shall be administered by the Directors who shall have the power to:-

 . determine appropriate procedures for administration of the Plan consistent
  with the terms hereof;

 . resolve conclusively all questions of fact or interpretation in connection
  with the Plan;

 . delegate in writing to any one or more persons for such period and on such
  conditions as they may determine the exercise of any of their powers or
  discretions arising under the Plan.

The STAY BONUS PLAN is issued under the Common Seal of COLLINS FOODS GROUP PTY
LTD by the authority of a resolution of its Directors at Brisbane on the 30th
day of March, 2001 in the presence of:-

/s/ Kevin William Perkins                    /s/ Heather Lynette Grace
______________________________________       ________________________________
Director                        Signature of Director

   Kevin William Perkins                         Heather Lynette Grace
______________________________________       ________________________________

<PAGE>

Name of Director                             Name of Director

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