SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
Response USA, Inc.
(Name of Issuer)
Common Stock, Par Value $0.008 Per Share
(Title of Class of Securities)
761235506
(CUSIP Number)
Jeffrey Queen
777 Yamato Road
Suite 350
Boca Raton, Florida 33431
Tel: 800-326-1122
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
January 11, 2000
(Date of Event which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition which is the subject of this Schedule 13D,
and is filing this schedule because of Rule 13d-1(b)(3) or (4), check
the following box [ ].
Note: Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. See Rule
13d-7(b) for other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class
of securities, and for any subsequent amendment containing information
which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 (the "Act") or otherwise subject to the
liabilities of that section of the Act but shall be subject to all
other provisions of the Act (however, see the Notes).
<PAGE>
<TABLE>
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Cusip No. 761235506
- --------------- --------------------------------------------------------------------------------------
1 Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only)
Jeffrey Queen.
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- --------------- --------------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a) [x]
(See Instructions) (b) [ ]
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3 SEC Use Only
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4 Source of Funds (See Instructions)
OO
See Item 3 below.
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5 Check if Disclosure of Legal Proceedings is Required Pursuant to Item 2(d) or 2(e)
Not Applicable.
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6 Citizenship or Place of Organization
United States of America.
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Number of 7 Sole Voting Power
Shares 409,323
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
8 Shared Voting Power
Beneficially
66,712
Owned by
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
9 Sole Dispositive Power
Each
409,323
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
Reporting 10 Shared Dispositive Power
Person With 66,712
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
476,035. See Item 5.
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12 Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [x]
See Item 5.
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13 Percent of Class Represented by Amount in Row (11)
Approximately 6.4%. See Item 5.
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14 Type of Reporting Person (See Instructions)
IN
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Cusip No. 761235506
- --------------- --------------------------------------------------------------------------------------
1 Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only)
Andrew Queen.
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- --------------- --------------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a) [x]
(See Instructions) (b) [ ]
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3 SEC Use Only
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4 Source of Funds (See Instructions)
OO and PF
See Item 3 below.
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5 Check if Disclosure of Legal Proceedings is Required Pursuant to Item 2(d) or 2(e)
Not Applicable.
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6 Citizenship or Place of Organization
United States of America.
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- ------------------------------ ------ ----------------------------------------------------------------
Number of 7 Sole Voting Power
Shares 409,324
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
8 Shared Voting Power
Beneficially
73,712
Owned by
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
9 Sole Dispositive Power
Each
409,324
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
Reporting 10 Shared Dispositive Power
Person With 73,712
- ------------------------------ ------ ----------------------------------------------------------------
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
483,036. See Item 5.
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12 Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [x]
See Item 5.
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13 Percent of Class Represented by Amount in Row (11)
Approximately 6.5%. See Item 5.
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14 Type of Reporting Person (See Instructions)
IN
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Cusip No. 761235506
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1 Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only)
Jeffrey Queen and Andrew Queen Irrevocable Trust U/A
January 2, 1998 (the "Trust").
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2 Check the Appropriate Box if a Member of a Group (a) [x]
(See Instructions) (b) [ ]
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3 SEC Use Only
- --------------- --------------------------------------------------------------------------------------
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4 Source of Funds (See Instructions)
OO
See Item 3 below.
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5 Check if Disclosure of Legal Proceedings is Required Pursuant to Item 2(d) or 2(e)
Not Applicable.
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6 Citizenship or Place of Organization
The Trust does not have a place of organization.
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- ------------------------------ ------ ----------------------------------------------------------------
Number of 7 Sole Voting Power
Shares 483,036
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
8 Shared Voting Power
Beneficially
None.
Owned by
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
9 Sole Dispositive Power
Each
483,036
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
Reporting 10 Shared Dispositive Power
Person With None.
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
483,036. See Item 5.
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12 Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [x]
See Item 5.
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13 Percent of Class Represented by Amount in Row (11)
Approximately 6.5%. See Item 5.
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14 Type of Reporting Person (See Instructions)
OO
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Cusip No. 761235506
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1 Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only)
Zenex J1, L.L.C. ("Zenex J1")
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2 Check the Appropriate Box if a Member of a Group (a) [x]
(See Instructions) (b) [ ]
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3 SEC Use Only
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4 Source of Funds (See Instructions)
OO
See Item 3 below.
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5 Check if Disclosure of Legal Proceedings is Required Pursuant to Item 2(d) or 2(e)
Not Applicable.
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6 Citizenship or Place of Organization
Florida
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- ------------------------------ ------ ----------------------------------------------------------------
Number of 7 Sole Voting Power
Shares None.
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
8 Shared Voting Power
Beneficially
66,712
Owned by
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
9 Sole Dispositive Power
Each
None.
------ ----------------------------------------------------------------
------ ----------------------------------------------------------------
Reporting 10 Shared Dispositive Power
Person With 66,712
- ------------------------------ ------ ----------------------------------------------------------------
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
66,712. See Item 5.
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12 Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [x]
See Item 5.
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13 Percent of Class Represented by Amount in Row (11)
Approximately 0.9%. See Item 5.
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14 Type of Reporting Person (See Instructions)
OO
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Cusip No. 761235506
- --------------- ------------------------------------------------------------------------------------------------
1 Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons (Entities Only)
Zenex A1, L.L.C. ("Zenex A1")
- --------------- ------------------------------------------------------------------------------------------------
- --------------- ------------------------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a) [x]
(See Instructions) (b) [ ]
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3 SEC Use Only
- --------------- ------------------------------------------------------------------------------------------------
- --------------- ------------------------------------------------------------------------------------------------
4 Source of Funds (See Instructions)
OO
See Item 3 below.
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- --------------- ------------------------------------------------------------------------------------------------
5 Check if Disclosure of Legal Proceedings is Required Pursuant to Item 2(d) or 2(e)
Not Applicable.
- --------------- ------------------------------------------------------------------------------------------------
- --------------- ------------------------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Florida
- --------------- ------------------------------------------------------------------------------------------------
- ------------------------------ ------ --------------------------------------------------------------------------
Number of 7 Sole Voting Power
Shares None.
------ --------------------------------------------------------------------------
------ --------------------------------------------------------------------------
8 Shared Voting Power
Beneficially
73,712
Owned by
------ --------------------------------------------------------------------------
------ --------------------------------------------------------------------------
9 Sole Dispositive Power
Each
None.
------ --------------------------------------------------------------------------
------ --------------------------------------------------------------------------
Reporting 10 Shared Dispositive Power
Person With 73,712
- ------------------------------ ------ --------------------------------------------------------------------------
- --------------- ------------------------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
73,712. See Item 5.
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12 Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [x]
See Item 5.
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- --------------- ------------------------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
Approximately 1.0%. See Item 5.
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- --------------- ------------------------------------------------------------------------------------------------
14 Type of Reporting Person (See Instructions)
OO
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</TABLE>
<PAGE>
Item 1. Security and Issuer.
This Amendment to Schedule 13D (this "Schedule 13D") relates to the
Common Stock, par value $0.008 per share (the "Common Stock"), of
Response USA, Inc., a Delaware corporation (the "Issuer"). The
principal executive offices of the Issuer are located at 3 Executive
Campus, 2nd Floor South, Cherry Hill, New Jersey 08002.
Item 2. Identity and Background.
This Schedule 13D is being filed pursuant to Rule 13d-2(a), promulgated
under the Act, by each of Jeffrey Queen, Andrew Queen, the Trust, Zenex
J1 and Zenex A1, as a group, and amends the Statement on Schedule 13D
filed on January 21, 2000 with the Securities and Exchange Commission
by Jeffrey Queen, Andrew Queen and the Trust. Jeffrey Queen, Andrew
Queen, the Trust, Zenex J1 and Zenex A1 are sometimes referred to
collectively as the "Reporting Persons" and individually as a
"Reporting Person."
The sole members of Zenex J1 are Jeffrey Queen and Andrew Queen.
Jeffrey Queen and Andrew Queen hold 95.5% and 0.5%, respectively, of
the membership interests in Zenex J1. Jeffrey Queen is the managing
member of Zenex J1.
The sole members of Zenex A1 are Andrew Queen and Jeffrey Queen. Andrew
Queen and Jeffrey Queen hold 95.5% and 0.5%, respectively, of the
membership interests in Zenex A1. Andrew Queen is the managing member
of Zenex A1.
Jeffrey Queen
(a) Jeffrey Queen.
(b) Jeffrey Queen's business address is 777 Yamato Road, Suite
350, Boca Raton, Florida 33431.
(c) Jeffrey Queen's principal employment is President of the
Issuer, whose address is set forth in Item 1 above.
(d) and (e) During the last five (5) years, Jeffrey Queen has not been
convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) nor been a party to a
civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state
securities laws or finding any violation with respect to
such laws.
(f) Jeffrey Queen is a citizen of the United States of
America.
Andrew Queen
(a) Andrew Queen.
(b) Andrew Queen's business address is 777 Yamato Road, Suite
350, Boca Raton, Florida 33431.
(c) Andrew Queen's principal employment is Chief Operating
Officer of the Issuer, whose address is set forth in Item
1 above.
(d) and (e) During the last five (5) years, Andrew Queen has not been
convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) nor been a party to a
civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state
securities laws or finding any violation with respect to
such laws.
(f) Andrew Queen is a citizen of the United States of America.
Trust
(a) Jeffrey Queen and Andrew Queen Irrevocable Trust U/A
January 2, 1998. The Trust does not have a place of
organization.
(b) The Trust's address is 6026 NW 30th Way, Boca Raton,
Florida 33496.
(c) N/A.
(d) and (e) During the last five (5) years, the Trust has not been
convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) nor been a party to a
civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state
securities laws or finding any violation with respect to
such laws.
(f) N/A.
Zenex J1
(a) Zenex J1, L.L.C., a Florida limited liability company.
(b) Zenex J1's principal business and principal office address
is 777 Yamato Road, Suite 350, Boca Raton, Florida 33431..
(c) Zenex J1 is in the business of investing Zenex J1's
holdings.
(d) and (e) During the last five (5) years, Zenex J1 has not been
convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) nor been a party to a
civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state
securities laws or finding any violation with respect to
such laws.
(f) Zenex J1 is a Florida limited liability company.
Zenex A1
(a) Zenex A1, L.L.C., a Florida limited liability company.
(b) Zenex A1's principal business and principal office address
is 777 Yamato Road, Suite 350, Boca Raton, Florida 33431..
(c) Zenex A1 is in the business of investing Zenex A1's
holdings.
(d) and (e) During the last five (5) years, Zenex A1 has not been
convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) nor been a party to a
civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state
securities laws or finding any violation with respect to
such laws.
(f) Zenex A1 is a Florida limited liability company.
Item 3. Source and Amount of Funds or Other Consideration.
Zenex J1, Zenex A1 and the Trust now hold 214,137 shares of Common
Stock, in the aggregate (of which Zenex J1 holds 66,712 shares, Zenex
A1 holds 73,712 shares and the Trust holds 73,713 shares), issued to
them, directly or indirectly, in connection with the sale of Health
Watch, Inc., a Florida corporation ("Health Watch") (such shares
collectively, the "Original Shares"). The Original Shares were
initially issued to Jeffrey Queen, Andrew Queen and the Trust as
partial consideration for the sale of Health Watch pursuant to a Stock
Purchase Agreement, dated as of September 16, 1998, among the Issuer
and each of Jeffrey Queen, Andrew Queen and the Trust (the "Purchase
Agreement"). The Original Shares held by Zenex J1 and Zenex A1,
respectively, were initially issued to Jeffrey Queen and Andrew Queen,
respectively. Zenex J1 and Zenex A1 were formed on December 11, 1998.
On March 17, 1999, Jeffrey Queen transferred 66,712 of the Original
Shares held by him to Zenex J1. On March 17, 1999, Andrew Queen
transferred 73,712 of the Original Shares held by him to Zenex A1. The
Purchase Agreement has been filed as Exhibit 1 to the Issuer's Form 8-K
filed with the Securities and Exchange Commission on October 6, 1998
and is incorporated by reference in this Schedule 13D, as provided in
Item 7 below.
On August 25, 1998, Andrew Queen purchased one (1) share of Common
Stock, in cash, at a purchase price of $5.75 in an open market
transaction. This share of Common Stock is held by Andrew Queen in his
Individual Retirement Account (the "IRA Share").
Pursuant to a Settlement Agreement, dated January 11, 2000, among the
Issuer and each of Jeffrey Queen, Andrew Queen and the Trust (the
"January Agreement"), the Issuer agreed to issue 1,227,969 shares of
Common Stock, in the aggregate, to each of Jeffrey Queen, Andrew Queen
and the Trust (such shares, collectively the "Settlement Shares"). On
January 13, 2000, the Issuer issued to each of Jeffrey Queen, Andrew
Queen and the Trust such Reporting Person's pro rata share of the
Settlement Shares (409,323 shares of Common Stock to each of Jeffrey
Queen, Andrew Queen and the Trust). The January Agreement has been
filed as Exhibit 1 to the Issuer's Form 8-K filed with the Securities
and Exchange Commission on January 21, 2000 and is incorporated by
reference in this Schedule 13D, as provided in Item 7 below. Pursuant
to the terms of a Modification Agreement, dated as of February 1, 2000,
among the Issuer and each Reporting Person (the "Amendment" and
together with the January Agreement, the "Settlement Agreement"), the
Issuer and each Reporting Person agreed, among other things, that the
Original Shares held by Zenex J1 and Zenex A1, respectively, are
subject to the standstill and other covenants and agreements contained
in the Purchase Agreement and the January Agreement as if such shares
were owned directly by Jeffrey Queen and Andrew Queen, respectively.
The Amendment has been filed as Exhibit II hereto, as provided in Item
7 below.
The Original Shares, the IRA Share and the Settlement Shares are
sometimes referred to collectively as the "Shares."
No loans were incurred to purchase any of the Shares.
Item 4. Purpose of Transaction.
All of the Shares have been acquired for investment and not for the
purpose of acquiring control of the Issuer.
Pursuant to Section 2(b) of the Settlement Agreement, the Reporting
Persons have agreed not to offer, pledge, sell, transfer, assign,
contract to sell, grant any option for the sale of, or otherwise
dispose of, directly, or indirectly (each a "Transfer"), the Settlement
Shares during the period commencing on January 11, 2000 and ending on
the earliest to occur of (the "Standstill Period") (a) January 11,
2002, or (b) a "Standstill Termination Event" (as defined below). The
occurrence of any of the following events constitutes a "Standstill
Termination Event," unless the prior written waiver thereof has been
obtained by the Issuer from Jeffrey Queen and Andrew Queen:
1. Richard M. Brooks shall cease to be and act as Chairman of the
Board of Directors of the Issuer.
2. The Issuer shall enter into any merger, consolidation or other
similar agreement or shall transfer, dispose of all or any
substantial portion of its assets or enter into any agreement with
respect to any of the foregoing, it being understood that this
restriction shall not apply to transfers of receivables and
contract rights to an affiliate of the Issuer as contemplated by
the Issuer's existing financing agreements.
3. The Issuer shall make any material acquisition which shall require
incurring additional material indebtedness of the Issuer, or amend
its Certificate of Incorporation, although the filing of a
certificate of designation with respect to its preferred stock
shall be permitted subject to the restrictions on issuance of
capital stock set forth in clause 5 below.
4. The Issuer shall cease to maintain in good standing its status as
an issuer of securities registered under Section 12 of Securities
and Exchange Act of 1934 and being current in its filings under
said Act.
5. The Issuer shall issue or agree to issue any common stock or
options or warrants or similar rights to acquire common stock, or
any other capital stock of the Issuer other than (w) the issuance
of common stock pursuant to the exercise of stock options
presently issued and outstanding, (x) the issuance of up to 20,000
options per year to each outside director of the Issuer as
previously approved by the Issuer's stockholders, (y) the issuance
at not less than market value of either common stock options or
common stock to Richard M. Brooks with respect to not more than
350,000 shares of common stock of the Issuer, in the aggregate
since December 15, 1999, or (z) the issuance of common stock of
the Issuer pursuant to the existing terms of binding contractual
obligations previously entered into by the Issuer which are
described in footnote 7 of the quarterly financial statements
included in the Issuer's Form 10QSB for the quarter ending
September 30, 1999 filed with the Securities and Exchange
Commission on November 19, 1999 (and incorporated by reference in
this Schedule 13D, as provided in Item 7 below), provided,
however, that the restriction on the issuance of capital stock to
non-employee, non-affiliate third parties shall not apply after
the payment of the amount due with respect to the June 30, 2000
"Make-Up Date" (as defined in Section 2.6(a) of the Purchase
Agreement) if the Issuer does not deliver any "Make-Up Stock" (as
defined in Section 2.6(a) of the Purchase Agreement) as part of
such payment.
6. The Issuer shall reprice or enter into any agreement to reprice or
amend any material provisions of any stock option or other
employee benefit plan of the Issuer.
7. The Issuer or any of its affiliates shall, directly or indirectly
(i) purchase or agree to purchase any of the Issuer's common
stock, preferred stock or any other securities, or, (ii) during
the thirty (30) day period preceding the delivery of any Make-Up
Stock, encourage or solicit other persons to purchase common stock
of the Issuer, provided that customary press releases, SEC filings
and investor relation activities shall be permitted during such
thirty (30) day period.
8. There shall occur any breach or default on the part of the Issuer
under any material representation, warranty or agreement made by
the Issuer in the Settlement Agreement, provided, however, that if
such breach or default can be cured, the same shall continue
uncured for thirty (30) days following receipt of written notice
of such breach or default.
Pursuant to Section 2.6(b) of the Settlement Agreement, the Reporting
Persons have agreed not to Transfer the Original Shares until the
earliest to occur of (a) July 10, 2000, or (b) a Standstill Termination
Event, however, if the payment due with respect to the June 30, 2000
Make-Up Date (which payment is due on July 10, 2000 (the "July
Payment")) is paid in cash then the Reporting Persons will not Transfer
the Original Shares until termination of the Standstill Period.
Section 2.6(b) of the Purchase Agreement provides that the Reporting
Persons have the right to designate one member of the Issuer's board of
directors, which right has not currently been exercised by the
Reporting Persons but, as provided in Section 2(c) of the Settlement
Agreement, is available for exercise. Pursuant to Section 2(c) of the
Settlement Agreement, the Issuer and each Reporting Person have agreed
that the number of directors of the Issuer's board of directors shall
not exceed five (one of whom shall be Richard M. Brooks) during the
period commencing on January 11, 2000 until receipt of the July
Payment. Section 2(c) of the Settlement Agreement further provides that
if any Make-Up Stock is issued to the Reporting Persons with respect to
the July Payment, the Reporting Persons will have the right to
designate a total of three members of the Issuer's board of directors;
provided that the number of members of such board following such
designation shall then consist of not more than seven members (one of
whom shall be Richard M. Brooks) until termination of the Standstill
Period.
The Purchase Agreement and the Settlement Agreement provide for the
possibility of additional shares of Make-Up Stock to be issued to the
Reporting Persons under certain conditions. Make-Up Stock is Common
Stock of the Issuer that may be issued by the Issuer to the Reporting
Persons, in lieu of cash, upon the occurrence of certain events.
Although none of the Reporting Persons has formulated any definitive
plans, a Reporting Person may from time to time acquire, or dispose of,
shares of Common Stock and/or other securities of the Issuer if and
when such Reporting Person deems it appropriate. Any decision of a
Reporting Person either to purchase additional shares of Common Stock
or to dispose of any shares of Common Stock may take into account
various factors, including general economic conditions, stock market
conditions and developments concerning the Issuer. A Reporting Person
may also formulate other purposes, plans or proposals relating to the
securities of the Issuer to the extent deemed advisable in light of
market conditions and other factors it deems relevant.
Except as indicated above or elsewhere herein, no Reporting Person has
any present plans or proposals (although it reserves the right to
develop such plans or proposals in the future) which relate to or would
result in:
(a) The acquisition by any person of additional securities of the
Issuer, or the disposition of securities of the Issuer;
(b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Issuer or any of
its subsidiaries;
(c) A sale or transfer of a material amount of assets of the Issuer
or any of its subsidiaries;
(d) Any change in the present board of directors or management of
the Issuer, including any plans or proposals to change the
number or term of directors or to fill any existing vacancies on
the board;
(e) Any material change in the present capitalization or dividend
policy of the Issuer;
(f) Any other material change in the Issuer's business or corporate
structure;
(g) Changes in the Issuer's charter, bylaws or instruments
corresponding thereto or other actions which may impede the
acquisition of control of the Issuer by any person;
(h) Causing a class of securities of the Issuer to be delisted from
a national securities exchange or to cease to be authorized to
be quoted in an inter-dealer quotation system of a registered
national securities association;
(i) A class of equity securities of the Issuer becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the
Act; or
(j) Any action similar to any of those enumerated above.
Item 5. Interest in Securities of the Issuer.
(a) (i) The Reporting Persons, as a group, are the beneficial
owners of 1,442,107 shares of Common Stock, in the
aggregate, representing approximately 19.5% of the
outstanding shares of Common Stock, based on 6,170,701
shares of Common Stock outstanding as of January 10, 2000
plus the Settlement Shares issued on January 13, 2000.
(ii) Jeffrey Queen is the beneficial owner of 476,035 shares of
Common Stock representing approximately 6.4% of the
outstanding shares of Common Stock, based on 6,170,701
shares of Common Stock outstanding as of January 10, 2000
plus the Settlement Shares issued on January 13, 2000. Of
such 476,035 shares of Common Stock, Jeffrey Queen has
direct beneficial ownership of 409,323 shares of Common
Stock and indirect beneficial ownership of 66,712 shares
of Common Stock by virtue of his position as the managing
member of Zenex J1 (see Item 5(b)(iv) below). Jeffrey
Queen expressly disclaims beneficial ownership of (A) the
409,324 shares of Common Stock directly beneficially owned
by Andrew Queen, (B) the 483,036 shares of Common Stock
directly beneficially owned by the Trust, and (C) the
73,712 shares of Common Stock directly beneficially owned
by Zenex A1 and indirectly beneficially owned by Andrew
Queen, and the filing of this Schedule 13D shall not be
construed as an admission that Jeffrey Queen is, for the
purposes of Section 13(d) or 13(g) of the Act, the
beneficial owner of any such securities.
(iii) Andrew Queen is the beneficial owner of 483,036 shares of
Common Stock representing approximately 6.5% of the
outstanding shares of Common Stock, based on 6,170,701
shares of Common Stock outstanding as of January 10, 2000
plus the Settlement Shares issued on January 13, 2000. Of
such 483,036 shares of Common Stock, Andrew Queen has
direct beneficial ownership of 409,324 shares of Common
Stock and indirect beneficial ownership of 73,712 shares
of Common Stock by virtue of his position as the managing
member of Zenex A1 (see Item 5(b)(v) below). Andrew Queen
expressly disclaims beneficial ownership of (A) the
409,323 shares of Common Stock directly beneficially owned
by Jeffrey Queen, (B) the 483,036 shares of Common Stock
directly beneficially owned by the Trust, and (C) the
66,712 shares of Common Stock directly beneficially owned
by Zenex J1 and indirectly beneficially owned by Jeffrey
Queen, and the filing of this Schedule 13D shall not be
construed as an admission that Andrew Queen is, for the
purposes of Section 13(d) or 13(g) of the Act, the
beneficial owner of any such securities.
(iv) The Trust is the beneficial owner of 483,036 shares of
Common Stock representing approximately 6.5% of the
outstanding shares of Common Stock, based on 6,170,701
shares of Common Stock outstanding as of January 10, 2000
plus the Settlement Shares issued on January 13, 2000.
Such 483,036 shares of Common Stock are directly
beneficially owned by the Trust. The Trust expressly
disclaims beneficial ownership of (A) the 409,323 shares
of Common Stock directly beneficially owned by Jeffrey
Queen, (B) the 66,712 shares of Common Stock directly
beneficially owned by Zenex J1 and indirectly beneficially
owned by Jeffrey Queen, (C) the 409,324 shares of Common
Stock directly beneficially owned by Andrew Queen, and (D)
the 73,712 shares of Common Stock directly beneficially
owned by Zenex A1 and indirectly beneficially owned by
Andrew Queen, and the filing of this Schedule 13D shall
not be construed as an admission that the Trust is, for
the purposes of Section 13(d) or 13(g) of the Act, the
beneficial owner of any such securities.
(v) Zenex J1 is the beneficial owner of 66,712 shares of
Common Stock representing approximately 0.9% of the
outstanding shares of Common Stock, based on 6,170,701
shares of Common Stock outstanding as of January 10, 2000
plus the Settlement Shares issued on January 13, 2000.
Such 66,712 shares of Common Stock are directly
beneficially owned by Zenex J1. Zenex J1 expressly
disclaims beneficial ownership of (A) the 409,323 shares
of Common Stock directly beneficially owned by Jeffrey
Queen, (B) the 409,324 shares of Common Stock directly
beneficially owned by Andrew Queen, (C) the 483,036 shares
of Common Stock directly beneficially owned by the Trust,
and (D) the 73,712 shares of Common Stock directly
beneficially owned by Zenex A1 and indirectly beneficially
owned by Andrew Queen, and the filing of this Schedule 13D
shall not be construed as an admission that Zenex J1 is,
for the purposes of Section 13(d) or 13(g) of the Act, the
beneficial owner of any such securities.
(vi) Zenex A1 is the beneficial owner of 73,712 shares of
Common Stock representing 1.0% of the outstanding shares
of Common Stock, based on 6,170,701 shares of Common Stock
outstanding as of January 10, 2000 plus the Settlement
Shares issued on January 13, 2000. Such 73,712 shares of
Common Stock are directly beneficially owned by Zenex A1.
Zenex A1 expressly disclaims beneficial ownership of (A)
the 409,323 shares of Common Stock directly beneficially
owned by Jeffrey Queen, (B) the 409,324 shares of Common
Stock directly beneficially owned by Andrew Queen, (C) the
483,036 shares of Common Stock directly beneficially owned
by the Trust, and (D) the 66,712 shares of Common Stock
directly beneficially owned by Zenex J1 and indirectly
beneficially owned by Jeffrey Queen, and the filing of
this Schedule 13D shall not be construed as an admission
that Zenex A1 is, for the purposes of Section 13(d) or
13(g) of the Act, the beneficial owner of any such
securities.
(b) (i) Jeffrey Queen has the sole power to vote and direct the
vote, and the sole power to dispose and direct the
disposition of, 409,323 shares of Common Stock (the
"Jeffrey Queen Shares"). Jeffrey Queen shares the power to
vote and direct the vote, and shares the power to dispose
and direct the disposition of, the "Zenex J1 Shares" (as
defined in Item 5(b)(iv) below).
(ii) Andrew Queen has the sole power to vote and direct the
vote, and the sole power to dispose and direct the
disposition of, 409,324 shares of Common Stock (the
"Andrew Queen Shares"). Andrew Queen shares the power to
vote and direct the vote, and shares the power to dispose
and direct the disposition of, the "Zenex A1 Shares" (as
defined in Item 5(b)(v) below).
(iii) The Trust has the sole power to vote and direct the vote,
and the sole power to dispose and direct the disposition
of, 483,036 shares of Common Stock (the "Trust Shares").
(iv) Zenex J1 and Jeffrey Queen share the power to vote and
direct the vote, and share the power to dispose and direct
the disposition of, 66,712 shares of Common Stock (the
"Zenex J1 Shares"). As the managing member of Zenex J1,
Jeffrey Queen has the sole power to act on behalf of Zenex
J1 in connection with the voting and disposition of the
Zenex J1 Shares.
(v) Zenex A1 and Andrew Queen share the power to vote and
direct the vote, and share the power to dispose and direct
the disposition of, 73,712 shares of Common Stock (the
"Zenex A1 Shares"). As the managing member of Zenex A1,
Andrew Queen has the sole power to act on behalf of Zenex
A1 in connection with the voting and disposition of the
Zenex A1 Shares.
(vi) Lorence Queen and Linda Queen are the only trustees under
the Jeffrey Queen and Andrew Queen Irrevocable Trust
Agreement, dated January 2, 1998 (the "Trust Agreement")
(in such capacity, each a "Trustee"). The Trust Agreement
provides that either Trustee may, if such Trustee so
desires, act alone as Trustee in exercising any or all of
the administrative powers set forth in such Agreement.
Except as provided in this Item 5(b), no Reporting Person shares
the power to vote or direct the vote, or shares the power to
dispose or direct the disposition of, any shares of Common
Stock.
(c)
- ---------- --------------- ------------------ ---------- ------------------
Seller Date of Sale Number of Shares Price Type of
of Common Stock Per Transaction
Sold Share
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex J1 12/3/99 3,500 $15/16 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex J1 12/8/99 3,500 $31/32 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex J1 12/13/99 3,500 $1.00 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex J1 12/28/99 3,500 $13/16 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex J1 12/31/99 3,500 $1.00 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex J1 1/5/00 3,500 $1.00 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex J1 1/10/00 3,500 $1 1/16 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex A1 12/6/99 3,500 $29/32 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex A1 12/9/99 3,500 $27/32 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex A1 12/14/99 3,500 $1.00 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex A1 12/29/99 3,500 $1 3/32 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex A1 1/3/00 3,500 $1.00 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex A1 1/6/00 500 $1 5/32 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
Zenex A1 1/6/00 3,000 $1 1/8 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
The Trust 12/7/99 3,500 $29/32 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
The Trust 12/10/99 3,500 $27/32 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
The Trust 12/15/99 3,500 $31/32 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
The Trust 12/30/99 3,500 $1 1/8 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
The Trust 1/4/00 900 $1 1/32 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
The Trust 1/4/00 2,600 $1.00 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
- ---------- --------------- ------------------ --------- -------------------
The Trust 1/7/00 3,500 $1 1/32 Open market
transaction through
a broker.
- ---------- --------------- ------------------ --------- -------------------
Except as described in this clause (c), no transactions in the
Common Stock were effected by any Reporting Person in the sixty
day period preceding the date of this filing.
(d) The Reporting Persons do not know of any other person having the
right to receive or the power to direct the receipt of dividends
from, or the proceeds from the sale of, the shares of Common
Stock beneficially owned by the Reporting Persons.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer.
The Trust Agreement provides that either Trustee may, if such Trustee
so desires, act alone as Trustee in exercising any or all of the
administrative powers set forth in such Agreement.
See also Item 4 above.
Item 7. Material to be Filed as Exhibits.
Exhibit I: Joint Filing Agreement and Power of Attorney, dated January
31, 2000, among the Reporting Persons.
Exhibit II: Modification Agreement, dated as of February 1, 2000, among
the Issuer and each Reporting Person.
Exhibit III: Joint Filing Agreement and Power of Attorney, dated
January 20, 2000, among Jeffrey Queen, Andrew Queen and the Trust
(incorporated by reference to Exhibit I to the Schedule 13D filed by
such Reporting Persons on January 21, 2000).
Exhibit IV: Stock Purchase Agreement, dated as of September 16, 1998,
among the Issuer and each Reporting Person (incorporated by reference
to Exhibit 1 to the Issuer's Form 8-K filed with the Securities and
Exchange Commission on October 6, 1998).
Exhibit V: The Issuer's Form 10QSB for the quarter ending September 30,
1999 filed with the Securities and Exchange Commission on November 19,
1999 and incorporated by reference in this Schedule 13D.
Exhibit VI: Settlement Agreement, dated as of January 11, 2000, among
the Issuer and each Reporting Person (incorporated by reference to
Exhibit 1 to the Issuer's Form 8-K filed with the Securities and
Exchange Commission on January 21, 2000).
Exhibit VII: The Jeffrey Queen and Andrew Queen Irrevocable Trust
Agreement, dated as of January 2, 1998 (incorporated by reference to
Exhibit V to the Schedule 13D filed by Jeffrey Queen, Andrew Queen and
the Trust on January 21, 2000).
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
February 1, 2000
--------------------------------------------
(Date)
/s/Jeffrey Queen
--------------------------------------------
Signature)
Jeffrey Queen
--------------------------------------------
(Name)
Attention. Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
February 1, 2000
--------------------------------------------
(Date)
/s/Andrew Queen
--------------------------------------------
(Signature)
Andrew Queen
--------------------------------------------
(Name)
Attention. Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
JEFFREY QUEEN AND ANDREW QUEEN
IRREVOCABLE TRUST U/A JANUARY 2, 1998
February 1, 2000
--------------------------------------------
(Date)
/s/Lorence Queen
--------------------------------------------
(Signature)
Lorence Queen, as Trustee
--------------------------------------------
(Name)
Attention. Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
JEFFREY QUEEN AND ANDREW QUEEN IRREVOCABLE
TRUST U/A JANUARY 2, 1998
February 1, 2000
--------------------------------------------
(Date)
/s/Linda Queen
--------------------------------------------
(Signature)
Linda Queen, as Trustee
--------------------------------------------
(Name)
Attention. Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
ZENEX J1, L.L.C.
February 1, 2000
--------------------------------------------
(Date)
/s/Jeffrey Queen
--------------------------------------------
(Signature)
Jeffrey Queen, as Managing Member
--------------------------------------------
(Name)
Attention. Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
ZENEX A1, L.L.C.
February 1, 2000
--------------------------------------------
(Date)
/s/Andrew Queen
--------------------------------------------
(Signature)
Andrew Queen, as Managing Member
--------------------------------------------
(Name)
Attention. Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).
<PAGE>
Exhibit I
JOINT FILING AGREEMENT AND POWER OF ATTORNEY
Pursuant to Rule 13d-1(k) promulgated under the Securities Exchange Act of
1934, as amended, the undersigned parties hereby agree that the Schedule 13D to
which this Joint Filing Agreement and Power of Attorney is being filed as an
Exhibit shall be a joint statement filed on behalf of each of the undersigned
with the Securities and Exchange Commission. The undersigned hereby agree that
this Joint Filing Agreement and Power of Attorney may be filed as an Exhibit to
such Schedule 13D. Each of the undersigned hereby appoints Jeffrey Queen and
Andrew Queen, or either of them, as his/her/its true and lawful
attorneys-in-fact and agents, with full power of substitution, for him and in
his name, in any and all capacities, to sign any or all amendments to such
Schedule 13D and to file the same with the Securities and Exchange Commission,
in each case for and in the name of the undersigned, in any and all capacities,
and each of the undersigned hereby ratifies and confirms all that said
attorneys-in-fact and agents, or either of them, may lawfully do or cause to be
done. This Joint Filing Agreement and Power of Attorney may be executed in any
number of counterparts all of which taken together shall constitute one and the
same instrument.
February 1, 2000
--------------------------------------------
(Date)
/s/Jeffrey Queen
--------------------------------------------
(Signature)
Jeffrey Queen
--------------------------------------------
(Name)
February 1, 2000
--------------------------------------------
(Date)
/s/Andrew Queen
--------------------------------------------
(Signature)
Andrew Queen
--------------------------------------------
(Name)
JEFFREY QUEEN AND ANDREW QUEEN
IRREVOCABLE TRUST U/A JANUARY 2, 1998
February 1, 2000
--------------------------------------------
(Date)
/s/Lorence Queen
--------------------------------------------
(Signature)
Lorence Queen, as Trustee
--------------------------------------------
(Name)
JEFFREY QUEEN AND ANDREW QUEEN IRREVOCABLE
TRUST U/A JANUARY 2, 1998
February 1, 2000
--------------------------------------------
(Date)
/s/Linda Queen
--------------------------------------------
(Signature)
Linda Queen, as Trustee
--------------------------------------------
(Name)
ZENEX J1, L.L.C.
February 1, 2000
--------------------------------------------
(Date)
/s/Jeffrey Queen
--------------------------------------------
(Signature)
Jeffrey Queen, as Managing Member
-------------------------------------------
(Name)
ZENEX A1, L.L.C.
February 1, 2000
--------------------------------------------
(Date)
/s/Andrew Queen
--------------------------------------------
(Signature)
Andrew Queen, as Managing Member
--------------------------------------------
(Name)
<PAGE>
Exhibit II
MODIFICATION AGREEMENT
Modification Agreement dated as of the 1st day of February, 2000, by and
among Jeffrey Queen, Andrew Queen, Jeffrey Queen and Andrew Queen Irrevocable
Trust u/a January 2, 1998 (the "Trust", and together with Andrew Queen and
Jeffrey Queen, collectively, the "Queens") and Response USA, Inc. (the
"Company").
RECITALS
WHEREAS, the parties hereto are parties to a certain Settlement Agreement
dated as of January 11, 2000 (the "Settlement Agreement") and desire to enter
into this Modification Agreement to clarify their understandings relating to the
manner in which Jeffrey Queen and Andrew Queen may hold title to shares of the
Company's common stock;
NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein, the parties hereto agree as follows:
1. The terms and provisions of the Settlement Agreement are hereby
incorporated herein by reference and capitalized terms used herein and not
otherwise defined shall have the respective meanings set forth in the Settlement
Agreement, including, without limitation, the definitions which are incorporated
by reference to the original Stock Purchase Agreement by and among the parties
hereto dated as of September 16, 1998 (the "Purchase Agreement").
2. Notwithstanding anything to the contrary contained in the Settlement
Agreement or in the Purchase Agreement, including, without limitation, the
standstill and assignment provisions described therein, the parties hereto
understand and agree that any shares of Common Stock which are now or were
formerly held by Jeffrey Queen and Andrew Queen, respectively, may be held as
follows: with respect to Jeffrey Queen, by Zenex J1, L.L.C., and with respect to
Andrew Queen, by Zenex A1, L.L.C. The Queens represent and warrant that (a)
Jeffrey Queen is the managing member of Zenex J1, L.L.C., that Zenex J1, L.L.C.
holds 66,712 shares of Common Stock and that Jeffrey Queen has the ability to
vote and control the decisions of Zenex J1, L.L.C., and (b) Andrew Queen is the
managing member of Zenex A1, L.L.C., that Zenex A1, L.L.C. holds 73,712 shares
of Common Stock and that Andrew Queen has the ability to vote and control the
decisions of Zenex A1, L.L.C. Each of Jeffrey Queen and Andrew Queen hereby
covenant and agree that they will cause such L.L.C.'s to comply with all of the
standstill and other covenants and agreements contained in the Purchase
Agreement with respect to the Settlement Agreement as if all shares of Common
Stock were owned directly by Jeffrey Queen and Andrew Queen, respectively, and
the Company agrees to extend to such L.L.C.'s, as holders of the Common Stock,
any and all rights which would be available to Jeffrey Queen and Andrew Queen,
respectively, if they owned such shares of Common Stock directly. This
Modification Agreement shall not be deemed to permit the transfer after the date
hereof of any shares of Common Stock held by any of the Queens to Zenex J1,
L.L.C. or to Zenex A1, L.L.C.
3. The parties agree to promptly execute any and all such further documents
and agreements as any party shall reasonably request in order to carry out the
intention of this Modification Agreement.
4. Except as hereby modified and amended, the Settlement Agreement and the
Purchase Agreement shall be and remain in full force and effect.
5. This Modification Agreement may be executed in one or more counterparts,
all of which will be considered one in the same agreements.
[Remainder of page intentionally left blank]
<PAGE>
IN WITNESS WHEREOF, the undersigned have executed this Modification
Agreement as of the date set forth above.
RESPONSE USA, INC.
By:/s/Richard M. Brooks
-----------------------------------------
Richard M. Brooks
Chief Executive Officer
Jeffrey Queen and Andrew Queen
Irrevocable Trust U/A January 2, 1998
By:/s/Lorence Queen
-----------------------------------------
Lorence Queen, Trustee
/s/Jeffrey Queen
-----------------------------------------
Jeffrey Queen
/s/Andrew Queen
-----------------------------------------
Andrew Queen
Each of the undersigned, being duly organized and existing limited
liability companies under the laws of the State of Florida, hereby agrees to
comply with all of the provisions of the Settlement Agreement and the Purchase
Agreement to the same extent and in the same manner as if the shares of Common
Stock of the Company held by each of such L.L.C.'s were held directly by Jeffrey
Queen, with respect to Zenex J1, L.L.C., and by Andrew Queen, with respect to
Zenex Al, L.L.C.
ZENEX J1, L.L.C.
By:/s/Jeffrey Queen
-----------------------------------------
Jeffrey Queen, Managing Member
ZENEX A1, L.L.C.
By:/s/Andrew Queen
-----------------------------------------
Andrew Queen, Managing Member
