Document:

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                                                                  EXHIBIT 10.12

                           STARR'S CHICKEN GRILL, INC.

                           FINANCIAL STATEMENTS AS OF

                                DECEMBER 31, 1996

                  TOGETHER WITH REPORT OF INDEPENDENT AUDITORS

<PAGE>   2

               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To the Board of Directors and Shareholders of
  CHICKEN KITCHEN CORPORATION:

We have audited the accompanying balance sheet of STARR'S CHICKEN GRILL, INC. as
of December 31, 1996, and the related statements of operations and accumulated
deficit, and cash flows for the year then ended. These financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of STARR'S CHICKEN GRILL, INC. as
of December 31, 1996, and the results of its operations and its cash flows for
the year then ended in conformity with generally accepted accounting principles.

As discussed in Note A to the financial statements, in November 1997 Chicken
Kitchen Corporation ("CKC") acquired the assets and leasehold interests of the
Company's two restaurants for $1,362,500. As of November 14, 1997, all of the
Company's operations were transferred to CKC, the acquirer.

                      McKEAN, PAUL, CHRYCY, FLETCHER & CO.

Miami, Florida,
  April 8, 1998

                                       1
<PAGE>   3

                           STARR'S CHICKEN GRILL, INC.
                                  BALANCE SHEET
                                DECEMBER 31, 1996

                                     ASSETS
CURRENT ASSETS:
  Receivables                                                        $   7,183
  Inventories                                                           13,790
                                                                     ---------
     Total Current Assets                                               20,973

OTHER ASSETS                                                             9,314

PROPERTY AND EQUIPMENT, net                                            106,890
                                                                     ---------
     Total Assets                                                    $ 137,177
                                                                     =========

                        LIABILITIES AND STOCKHOLDERS' DEFICIENCY

CURRENT LIABILITIES:
  Accounts payable and accrued expenses                              $ 132,352
  Loan payable to principal stockholder                                409,694
   Current portion of note and loan payable                             11,630
                                                                     ---------
     Total Current Liabilities                                         553,676
                                                                     ---------
BANK LOAN PAYABLE                                                       24,646
                                                                     ---------

COMMITMENTS AND CONTINGENCIES                                               --
                                                                     ---------

STOCKHOLDERS' DEFICIENCY:
  Common stock, 1,000 shares of $1 par value authorized,
       510 shares issued and outstanding                                   510
  Additional paid-in capital                                           189,490
  Accumulated deficit                                                 (631,145)
                                                                     ---------
     Total Stockholders' Deficiency                                   (441,145)
                                                                     ---------
     Total Liabilities and Stockholders' Deficiency                  $ 137,177
                                                                     =========

               The accompanying notes to financial statements are
                      an integral part of this statement.

                                       2

<PAGE>   4

                           STARR'S CHICKEN GRILL, INC.
                 STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT
                      FOR THE YEAR ENDED DECEMBER 31, 1996

FOOD AND BEVERAGE SALES                                   $ 2,214,276
COST OF SALES                                               1,010,057
                                                          -----------
     Gross profit                                           1,204,219
                                                          -----------

CONTROLLABLE EXPENSES:
  Labor and employee benefits                                 751,168
  Direct operating expenses                                    54,822
  Advertising and promotion                                    19,143
  Utilities                                                    45,085
  Consulting fees                                              70,598
  Administrative and general                                  100,124
                                                          -----------
     Total controllable expenses                            1,040,940
                                                          -----------

     Profit before occupation costs                           163,279
                                                          -----------

OCCUPATION COSTS:
  Rent                                                         76,755
  Taxes and insurance                                         125,249
                                                          -----------
     Total occupation costs                                   202,004
                                                          -----------

     Loss before other expenses                               (38,725)
                                                          -----------

OTHER EXPENSES:
  Depreciation                                                 43,197
  Amortization                                                    694
                                                          -----------
     Total other expenses                                      43,891
                                                          -----------

     Net loss                                                 (82,616)

ACCUMULATED DEFICIT, beginning of year                       (548,529)
                                                          -----------

ACCUMULATED DEFICIT, end of year                          $  (631,145)
                                                          ===========

               The accompanying notes to financial statements are
                      an integral part of this statement.

                                       3

<PAGE>   5

                           STARR'S KITCHEN GRILL, INC.
                             STATEMENT OF CASH FLOWS
                      FOR THE YEAR ENDED DECEMBER 31, 1996

<TABLE>
<CAPTION>

<S>                                                                               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                                        $(82,616)
  Adjustments to reconcile net loss to net cash used in operating activities:
       Depreciation and amortization                                                43,891
       Changes in operating assets and liabilities:
         Receivables                                                                (3,707)
         Other assets                                                                 (905)
         Accounts payable and accrued expenses                                      26,407
                                                                                  --------
             Net cash used in operating activities                                 (16,930)
                                                                                  --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and equipment                                                (5,193)
                                                                                  --------
             Net cash used in investing activities                                  (5,193)
                                                                                  --------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase in loan payable to principal stockholder                                 18,025
  Proceeds from bank loan payable                                                   30,000
  Note and loan payable principal repayments                                       (25,902)
                                                                                  --------
             Net cash provided by financing activities                              22,123
                                                                                  --------

INCREASE IN CASH                                                                        --

CASH, beginning of year                                                                 --
                                                                                  --------
CASH, end of year                                                                 $     --
                                                                                  ========

SUPPLEMENTAL DISCLOSURE:
  Cash paid during the year for interest expense                                  $  9,401
                                                                                  ========
  Cash paid during the year for taxes                                             $     --
                                                                                  ========

</TABLE>

               The accompanying notes to financial statements are
                      an integral part of this statement.

                                       4
<PAGE>   6

                           STARR'S CHICKEN GRILL, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1996

A.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     BUSINESS ACTIVITY
     The Company operated two restaurants and was the franchiser of two others
     in Dade County, Florida. In November 1997, Chicken Kitchen Corporation
     ("CKC") acquired the assets and leasehold interests of the Company's two
     restaurants for $1,362,500. On November 14, 1997, the operations were
     transferred to CKC, the acquirer.

     INVENTORIES
     Inventories consist of food, beverages and supplies stated at the lower of
     cost or market, using the first-in first-out method in determining cost and
     net realizable value in determining market.

     PROPERTY AND EQUIPMENT
     Property and equipment are stated at cost. Depreciation and amortization is
     computed over the estimated useful lives of the assets on the straight-line
     method.

     INCOME TAXES
     No provision had been made for income taxes since company and stockholders
     had elected, under the S-corporation section of the Internal Revenue Code,
     to have each owner's share of the earnings of loss included in the owner's
     individual tax return.

     USE OF ESTIMATE
     The preparation of financial statements in conformity with generally
     accepted accounting principles requires management to make estimates and
     assumptions that affect the reported amounts of assets and liabilities and
     disclosures of contingent assets and liabilities at the date of the
     financial statements and revenue and expenses during the period reported.
     Actual results could differ from those estimates.

B.   PROPERTY AND EQUIPMENT

                                          ESTIMATED
                                         USEFUL LIVES
                                          (In Years)
                                         ------------

      Leasehold improvements                  7                     $ 188,060
      Furniture and equipment                5-7                      130,533
                                                                    ---------
                                                                      318,593
      Less accumulated depreciation                                  (211,703)
                                                                    ---------
                                                                    $ 106,890
                                                                    =========

                                       5
<PAGE>   7

C.   LOANS AND NOTE PAYABLE

     Loan and note payable include the following:

<TABLE>
<CAPTION>

     <S>                                                                          <C>
     Loan payable, due on demand to the principal stockholder, bearing interest
       at 5% per year.                                                             $409,694

     Note payable to the former owner of the Miami Beach Restaurant location,
       bearing interest at 8%.                                                        6,695

     Bank loan payable over sixty months in equal principal and interest
       installments of $634 including interest at 9.79% per year, personally
       guaranteed by stockholders                                                    29,581
                                                                                   --------

              Total                                                                $445,970
                                                                                   ========

     Presented in the financial statements as follows:
       Loan payable to principal stockholder - current                             $409,694
       Current portion of note and loan payable                                      11,630
       Bank loan payable - long term                                                 24,646
                                                                                   --------
                                                                                   $445,970
                                                                                   ========
</TABLE>

D.  LEASE COMMITMENTS

     The Company leases its restaurant locations under non-cancelable operating
     leases expiring at various dates through November 2001. The leases, which
     contain five-year renewal options, provide for additional rent based on
     proportionate real estate taxes, insurance and water usage.

     Future minimum lease payments under the leases are approximately as
     follows:

     1997                                                         $76,000
     1998                                                          77,000
     1999                                                          64,000
     2000                                                          46,000
     2001                                                          38,000
                                                                 --------
                                                                 $301,000
                                                                 ========

                                       6Lanier Worldwide, Inc. / Exhibit 10.1

EXHIBIT 10.1

PERFORMANCE SHARE AWARD AGREEMENT

TERMS & CONDITIONS

Effective as of November 30, 1999

     
1.  Award — Terms and Conditions. Under and
 subject to the provisions of the Corporation’s Stock
Incentive Plan, as in effect from time to time (the
“Plan”), the Corporation has granted to the employee of
 the Corporation designated by the Committee to receive an Award
under the Plan (the “Employee”) a Performance Share
Award (the “Award”) of such number of shares of $.01
par value common stock of the Corporation, together with the
associated preferred stock purchase rights, (the
“Stock”) as set forth and designated in writing by the
Corporation to the Employee. Such Award is subject to the
following Terms and Conditions:

		
	 	     
	(a)  For purposes of these Terms and Conditions, the
	“Performance Period” shall be the performance period
	set forth and designated as such in writing by the Committee to
	the Employee.
	 
	 	     
	(b)  Upon the expiration of the Performance Period and
	satisfaction of applicable withholding obligations, the
	Corporation shall cause such shares as to which the Employee is
	entitled pursuant to Section l(c) hereof, at its option,
	either (i) to be issued by delivery of a stock certificate
	in the name of the Employee or his or her designee, with the
	certificate released to the custody of the Employee, or
	(ii) to be credited to an account for the benefit of the
	Employee maintained by the Corporation’s stock transfer
	agent or its designee.
	 
	 	     
	(c)  The Award shall be contingent upon the attainment
	during the Performance Period of the Performance Goals
	established by the Committee for the Performance Period. The
	percentage attainment of the shares of Stock subject to the Award
	 shall be determined upon the expiration of the Performance
	Period based upon an assessment of actual performance compared
	with the Performance Goals. The final payout determination will
	be authorized by the Committee, or its designee. If employment is
	 commenced after July 15th of the first fiscal year of the
	Performance Period (such commencement date is referred to as the
	“Start Date”), the final payout to be made to the
	Employee determined in accordance with the prior provisions of
	this Section l(c) upon expiration of the Performance Period shall
	 be reduced by 1/36th for each month between July 1 of the
	first fiscal year of the Performance Period and the Start Date.
	Only a Start Date prior to the 15th of a month shall be deemed
	employment for a full month. Other than with respect to the final
	 payout, the pro-ration pursuant to this Section 1(c) will
	not otherwise impact the Award (e.g., the Employee will have full
	 voting rights and will be entitled to receive cash dividends
	with respect to all Award shares).
	 
	 	     
	(d)  During the Performance Period, the Employee may
	exercise full voting rights with respect to all shares of Stock
	subject to the Award and shall be entitled to receive cash
	dividends paid with respect to such shares. The Employee’s
	right to receive stock dividends or any other distributions with
	respect to shares of Stock subject to the Award shall be
	contingent upon the Employee’s receipt of the underlying
	shares. Upon the expiration of the Performance Period, the
	Employee may exercise voting rights and shall be entitled to
	receive dividends and other distributions paid with respect to
	the number of shares to which the Employee is entitled pursuant
	to Section 1(c) hereof.
	 
	 	     
	(e)  The number of shares subject to the Award is based upon
	 the assumption that the Employee shall continue to perform
	substantially the same duties throughout the Performance Period,
	and such number of shares may be reduced by the Committee or its
	designee without formal amendment of these Terms and Conditions
	to reflect a change in duties during the Performance Period.

     
2.  Termination of Employment. Other than in the
event of a “change in control” covered in
Section 4 hereof, if the Employee ceases to be an employee
of the Corporation or one of its Affiliates prior to the
expiration of the Performance Period (i) for any reason
other than death, disability (as determined by the Committee), or
 retirement (as determined by the Committee) after the Employee
has reached age 55 with 10 or more years full-time service, all
shares of Stock awarded to the Employee hereunder shall be
forfeited; and

1

(ii) due to death, disability (as determined by the
Committee), or retirement (as determined by the Committee) after
the Employee has reached age 55 and has 10 or more years of
full-time service, the Employee shall be eligible to receive a
pro-rata proportion of the shares of Stock that would have been
issued to the Employee under the Award at the end of the
Performance Period, such pro-rata proportion to be measured by a
fraction, the numerator of which is the number of months of the
Performance Period during which the Employee’s employment
continued, and the denominator of which is the full number of
months of the Performance Period. For purposes of this
Section 2, only employment for 15 days or more of a
month shall be deemed employment for a full month.

     
3.  Prohibition Against Transfer. The Award and the
rights granted by the Corporation under these Terms and
Conditions and the Performance Share Award Agreement of which
they form a part are not transferable. Without limiting the
generality of the foregoing, the Award may not be sold,
exchanged, assigned, transferred, pledged, hypothecated or
otherwise disposed of, shall not be assignable by operation of
law, and shall not be subject to execution, attachment or similar
 process. Any attempt to effect any of the foregoing shall be
null and void and without effect. Shares of Stock subject to the
Award shall not be sold, exchanged, assigned, transferred,
pledged, hypothecated or otherwise disposed of until issued or
credited to an account for the benefit of the Employee maintained
 by the Corporation’s stock transfer agent or its designee.

     
4.  Change in Control.

		
	 	     
	(a)  Upon a “change in control” of the Corporation
	 as defined in Section 12.1 of the Plan, the performance
	objectives shall be conclusively deemed to have been attained,
	and the Award shall vest immediately prior to the occurrence of
	such “change in control.” The Award shall be paid to
	the Employee at the end of the Performance Period, provided
	however, (i) in the event of death, disability, retirement,
	or involuntary termination other than for Cause (all as
	determined by the Committee), the Award shall be paid in Stock as
	 soon as practicable; (ii) in the event of resignation or
	termination for Cause, the Award shall be forfeited; and
	(iii) in the event of a “change in the
	Corporation’s capital structure,” the Award, at the
	election of the Employee, shall be paid in Stock or converted and
	 paid in cash as soon as practicable. The amount of any such cash
	 payment under (iii) of the preceding sentence will be an
	amount equal to the number of shares of Stock subject to the
	Award multiplied by the highest price per share paid in any
	transaction reported on the New York Stock Exchange Composite
	Index (x) during the 60-day period preceding and including
	the date of a “change in the Corporation’s capital
	structure” or (y) during the 60-day period preceding
	and including the date of “change in control,”
	whichever is higher.
	 
	 	     
	(b)  For purposes hereof, a “change in the
	Corporation’s capital structure” shall be deemed to
	have occurred if

		
	 	     
	(i)  the Stock is no longer the only class of the
	Corporation’s common stock;
	 
	 	     
	(ii)  the Stock ceases to be, or is not readily, tradable on
	 an established securities market (in the United States) within
	the meaning of Section 409(l)(1) of the Code;
	 
	 	     
	(iii)  the Corporation issues warrants, convertible debt, or
	 any other security that is exercisable or convertible into
	common stock, except for rights granted under the Plan; or
	 
	 	     
	(iv)  the ratio of total debt to total capitalization
	exceeds 45%. Total debt is the total debt for borrowed money.
	Total capitalization is consolidated total assets of the
	Corporation less consolidated total liabilities of the
	Corporation.

		
	 	     
	(c)  “Cause” shall mean as determined by the Board
	 in good faith (i) a material breach by the Employee of the
	duties and responsibilities of the Employee or any written
	policies or directives of the Corporation (other than as a result
	 of incapacity due to physical or mental illness) that is
	(x) willful or involves gross negligence and (y) not
	remedied within 15 days after receipt of written notice from
	 the Corporation that specifically identifies the manner in which
	 such breach has occurred, (ii) the Employee commits any
	felony or any misdemeanor involving willful misconduct,
	(iii) the Employee engages in a fraudulent or dishonest act
	that damages or adversely prejudices the Corporation or any
	Affiliate of the

2

		
	 	
	Corporation or engages in other conduct or activities damaging to
	 the property, business or reputation of the Corporation or an
	Affiliate of the Corporation, (iv) the Employee engages in
	habitual insobriety or substance abuse that materially damages or
	 adversely prejudices the Corporation or any Affiliate of the
	Corporation, or (v) the Employee diverts any business
	opportunity from the Corporation or an Affiliate of the
	Corporation (except with prior written consent of the Board).

     
5.  Miscellaneous. These Terms and Conditions and the
 Performance Share Award Agreement of which they form a part
(a) shall be binding upon and inure to the benefit of any
successor of the Corporation, (b) shall be governed by the
laws of the State of Georgia and any applicable laws of the
United States, and (c) except as permitted under
Sections 3.2 and 6.6 of the Plan and the provisions hereof,
may not be amended without the written consent of both the
Corporation and the Employee. No contract or right of employment
shall be implied by these Terms and Conditions and the
Performance Share Award Agreement of which they form a part. If
the Award is assumed or a new award is substituted therefor in
any corporate reorganization (including, but not limited to, any
transaction of the type referred to in Section 424(a) of the
 Code), employment by such assuming or substituting corporation
or by a parent corporation or subsidiary corporation thereof
shall be considered for all purposes of the Award to be
employment by the Corporation. The Fair Market Value of any
shares delivered to the Corporation or withheld by the
Corporation, at the Corporation’s discretion, to satisfy any
 tax withholding requirements shall not exceed minimum statutory
withholding requirements.

     
6.  Securities Law Requirements. The Corporation
shall not be required to issue shares pursuant to the Award
unless and until (a) such shares have been duly listed upon
each stock exchange on which the Stock is then registered, and
(b) a registration statement under the Securities Act of
1933 with respect to such shares is then effective.

     
7.  Committee. The Committee administering the Plan
shall have authority, subject to the express provisions of the
Plan as in effect from time to time, to construe these Terms and
Conditions and the Performance Share Award Agreement of which
they form a part, as well as the Plan; to establish, amend and
rescind rules and regulations relating to the Plan; and to make
all other determinations in the judgment of the Committee
necessary or desirable for the administration of the Plan. The
Committee may correct any defect or supply any omission or
reconcile any inconsistency in these Terms and Conditions and the
 Performance Share Award Agreement of which they form a part in
the manner and to the extent it shall deem expedient to carry the
 Plan into effect, and it shall be the sole and final judge of
such expediency.

     
8.  Adjustments. Nonrecurring losses or charges that
are separately identified and quantified in the
Corporation’s audited financial statements and notes
thereto, including, but not limited to, extraordinary items,
changes in tax laws, changes in generally accepted accounting
principles, impact of discontinued operations, and restructuring
charges, and restatement of prior period financial results, shall
 be excluded from the calculation of performance results for
purposes of the Plan. However, the Committee can choose to
include any or all such non-recurring items as long as inclusion
of each such item causes the Award to be reduced.

     
9.  Incorporation of Plan Provisions. These Terms and
 Conditions and the Performance Share Award Agreement of which
they form a part are made pursuant to the Plan, the provisions of
 which are hereby incorporated by reference. Capitalized terms
not otherwise defined herein shall have the meanings set forth
for such terms in the Plan. In the event of a conflict between
the terms of (i) these Terms and Conditions and the
Performance Share Award Agreement of which they form a part and
(ii) the Plan, the terms of the Plan shall govern.

3

EXHIBIT 10.1

SCHEDULE TO PERFORMANCE SHARE AWARD AGREEMENT

TERMS & CONDITIONS

     
On November 30, 1999, Performance Share Awards were granted
to the following Executive Officers in the amounts indicated,
pursuant to the Lanier Worldwide, Inc. Performance Share Award
Agreement Terms and Conditions:

	 	 	 	 	 
	
	
	
	

	
	W. E. Cantrell		
	Chairman of the Board and Chief Executive Officer		
	35,000
	
	
	
	

	
	C. L. Herrin		
	Director, President and Chief Operating Officer		
	15,000
	
	
	
	

	
	J. A. MacLennan		
	Executive Vice President		
	7,000
	
	
	
	

	
	D. J. Marini		
	Executive Vice President		
	10,000

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