-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NWUnGrmx2yFlAj5YcuifhWSja+HlnK2eQ6G5ReNr3RGqpklWqDaSC51qd4j4QUSk XwdoPQf4Av0UToVjtG02tA== 0000916002-97-000012.txt : 19970311 0000916002-97-000012.hdr.sgml : 19970311 ACCESSION NUMBER: 0000916002-97-000012 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 19970310 SROS: NASD SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: RESPONSE ONCOLOGY INC CENTRAL INDEX KEY: 0000763098 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-SPECIALTY OUTPATIENT FACILITIES, NEC [8093] IRS NUMBER: 621212264 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-37885 FILM NUMBER: 97553149 BUSINESS ADDRESS: STREET 1: 1775 MORIAH WOODS BLVD CITY: MEMPHIS STATE: TN ZIP: 38117 BUSINESS PHONE: 9017617000 MAIL ADDRESS: STREET 1: 1775 MORIAH WOODS BLVD CITY: MEMPHIS STATE: TN ZIP: 38117 FORMER COMPANY: FORMER CONFORMED NAME: RESPONSE TECHNOLOGIES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: BIOTHERAPEUTICS INC DATE OF NAME CHANGE: 19891221 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: SEAFIELD CAPITAL CORP CENTRAL INDEX KEY: 0000830158 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEDICAL LABORATORIES [8071] IRS NUMBER: 431039532 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 2600 GRAND AVE STE 500 STREET 2: P O BOX 410949 CITY: KANSAS CITY STATE: MO ZIP: 64141 BUSINESS PHONE: 8168427000 MAIL ADDRESS: STREET 1: P.O. BOX 410949 STREET 2: 2600 GRAND AVENUE, SUITE 500 CITY: KANSAS CITY STATE: MO ZIP: 64141 FORMER COMPANY: FORMER CONFORMED NAME: BMA CORP /MO/ DATE OF NAME CHANGE: 19910520 FORMER COMPANY: FORMER CONFORMED NAME: SEAFIELD CAPTIAL CORP DATE OF NAME CHANGE: 19910520 FORMER COMPANY: FORMER CONFORMED NAME: BMA PROPERTIES INC DATE OF NAME CHANGE: 19880411 SC 13D/A 1 AMENDMENT NO. 10 TO SC 13D OF SEAFIELD CAPITAL CO UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. 10)* RESPONSE ONCOLOGY, INC. (Name of Issuer) Common Stock $.01 Par Value (1) (Title of Class of Securities) 761232-107 (CUSIP Number) Lathrop M. Gates, 2345 Grand Blvd., Suite 2800, Kansas City, MO 64108, (816) 292-2000 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) 02/26/97 (Date of Event which Requires Filing of this Statement) If the reporting 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. ______ Check the following box if a fee is being paid with this statement. ______ (A fee is not required only if the reporting person: (1) has a previous statement on file reporting beneficial ownership of more than five percent of the class of securities described in Item 1; and (2) has filed no amendment subsequent thereto reporting beneficial ownership of five percent or less of such class.) (See Rule 13d-7). Note: Six copies of this statement, including all exhibits, should be filed with the Commission. See Rule 13d-1 (a) for other parties to whom copies are to be sent. (Continued on following pages) (Page 1 of 18 pages) ____________________ *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 the 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 ("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). (1) Name of Reporting Person S.S. or I.R.S. Identification No. of Above Person Seafield Capital Corporation 43-1039532 (2) Check the Appropriate Box (a) ______ if a Member of a Group* (b) ______ (3) SEC Use Only (4) Source of funds* WC (5) Check Box if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) ______ (6) Citizenship or Place of Organization Missouri Number of Shares beneficially Owned (7) Sole Voting Power by Each Reporting 8,077,392 Person With (8) Shared Voting Power -0- (9) Sole Dispositive Power 8,077,392 (10) Shared Dispositive Power -0- (11) Aggregate Amount Beneficially Owned By Each Reporting Person 8,077,392 (12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares* ___X___ -2- (13) Percent of Class Represented by Amount in Row (11) 67.5% (14) Type of Reporting Person* CO * See Instructions before Filling Out! -3- Item 1. Security and Issuer. This Amendment No. 10 ("Amendment No. 10") to Schedule 13D concerns the common stock, par value $.01 per share ("Common Stock") of Response Oncology, Inc. (formerly named Response Technologies, Inc.) ("Response"), whose principal executive offices are at 1775 Moriah Woods Boulevard, Memphis, Tennessee 38117. Amendment No. 10 amends an original report (the "Original Report") on Schedule 13D respecting a purchase of shares of Common Stock on October 31, 1990, as amended by Amendment No. 1 to Schedule 13D, dated August 2, 1991 ("Amendment No. 1"), Amendment No. 2 to Schedule 13D, dated November 11, 1991 ("Amendment No. 2"), Amendment No. 3 to Schedule 13D, dated June 9, 1992 ("Amendment No. 3"), Amendment No. 4 to Schedule 13D dated, August 4, 1992 ("Amendment No. 4"), Amendment No. 5 to Schedule 13D, dated May 13, 1993 ("Amendment No. 5"), Amendment No. 6 to Schedule 13D, dated February 17, 1995 ("Amendment No. 6"), Amendment No. 7 to Schedule 13D, dated June 24, 1996 ("Amendment No. 7"), Amendment No. 8 to Schedule 13D, dated September 4, 1996 ("Amendment No. 8") and Amendment No. 9 to Schedule 13D, dated October 16, 1996 ("Amendment No. 9") (collectively, Amendments No.1, No. 2, No.3, No. 4, No. 5, No.6, No. 7, No. 8 and No. 9 are sometimes referred to as the "Prior Amendments"). The Issuer is the same Issuer referred to in the Original Report and in the Prior Amendments; the current name of the Issuer reflects a change effective November 1995. The Common Stock is the same class of stock reported on in the Original Report and in the Prior Amendments; the par value of the Common Stock was changed in November 1995 as a result of a 1 for 5 reverse stock split. Item 2. Identity and Background. This report is filed by Seafield Capital Corporation ("Seafield") (formerly named BMA Corporation). Seafield is a Missouri corporation; the address of its principal executive office is 2600 Grand Boulevard, Suite 500, P.O. Box 410949, Kansas City, Missouri 64141. Seafield is a holding company engaged through its subsidiaries in various activities. Its principal interests are its 82% owned subsidiary, LabOne, Inc. (formerly named Home Office Reference Laboratory, Inc.), a provider of clinical, substance abuse and insurance laboratory testing services whose offices are located at 10310 West 84th Terrace, Lenexa, Kansas 66214, and its interest in Response. Seafield also owns certain short-term and intermediate-term investment grade securities. On March 3, 1997, Seafield distributed to its shareholders all outstanding shares of a subsidiary company (i.e., SLH Corporation) which now owns all of those oil and gas, venture capital and real estate investments previously owned by Seafield. Set forth in Schedule 1 hereto are the names, business addresses and principal occupations or employment of the executive officers and directors of Seafield. Each person listed on Schedule 1 is a United States citizen. During the past five years, neither Seafield nor to its knowledge, any of the persons identified in Schedule 1 has been (i) convicted in a criminal proceeding, or (ii) a party to a civil proceeding of a judicial or administrative body as a result of which such person 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. -4- Item 3. Source and Amount of Funds or Other Consideration. As previously reported, in 1992 Seafield made a $500,000 non-recourse loan to Dr. William H. West, Response's Chairman of the Board, secured by 26,066 shares (previously reported in error as 26,067 shares) of Response Common Stock (the "West Shares"). The funds used to make said loan were part of Seafield's working capital at the time. The indebtedness under said loan matured December 31, 1996. After complying with applicable law, Seafield acquired the West Shares in satisfaction of said indebtedness on February 17, 1997. Also as previously reported, on October 4, 1996 Seafield entered into a Loan Agreement (the "Loan Agreement") with Response; pursuant to the Loan Agreement Response was authorized to borrow from Seafield up to $23.5 Million. As of February 26, 1997, Response's borrowings under the Loan Agreement aggregated $23.5 Million. The funds used to make advances to Response under the Loan Agreement were part of Seafield's working capital. On February 26, 1997, all indebtedness under the Loan Agreement was satisfied by Response's issuance of 3,020,536 shares of its Common Stock (the "Newest Shares") to Seafield. Item 4. Purpose of the Transaction. Seafield acquired the West Shares pursuant to the loan documents governing the 1992 loan by Seafield to Dr. West to close out the loan transaction. Dr. West's obligations in connection with said loan were limited to the West Shares. Following the maturity of said loan, he consented to a transfer of said shares to Seafield. Seafield acquired the Newest Shares pursuant to that certain Agreement of Payment and Satisfaction dated February 26, 1997, between Seafield and Response ("Payment Agreement") which provided that all outstanding principal of the indebtedness under the Loan Agreement (i.e., $23,500,000) and all accrued interest on said indebtedness (i.e., $664,287.66) would be paid and satisfied by way of Response's issuance of the Newest Shares to Seafield. Pursuant to the Payment Agreement, the note evidencing the indebtedness under the Loan Agreement was cancelled and the Loan Agreement was terminated. Also pursuant to the Payment Agreement Seafield has certain registration rights respecting the Newest Shares, as well as all other shares of Response Common Stock owned by Seafield, which registration rights are governed by Section 5.1 of that certain Securities Purchase Agreement dated September 26, 1990 between Response and Seafield (the "Securities Purchase Agreement"). The Newest Shares were acquired to consolidate all of Seafield's investment in Response in the form of Common Stock and to increase Response's shareholder equity (to approximately $62 Million); the increase in shareholder equity should place Response in a solid financial position to pursue the growth of its oncology services. The West Shares and the Newest Shares were acquired by Seafield as an investment, provided that as announced in the Press Release referred to below, Seafield is exploring a possible distribution to its shareholders of all of its shares of Response Common Stock in the second quarter of 1997. Immediately following the closing under the Payment Agreement, Seafield issued a Press Release (the "Press Release") disclosing its acquisition of the Newest Shares, as well as the possible -5- distribution to its shareholders of all of its shares of Response Common Stock. Seafield had previously announced (as recited in Amendment No. 6) that it is contemplating a merger with its 82% owned subsidiary, LabOne, Inc., and that such a merger would likely be preceded by a distribution to Seafield shareholders, or other disposition by Seafield, of its shares of Response Common Stock. Seafield expects that any distribution to its shareholders of shares of Response Common Stock would be made only pursuant to a Registration Statement filed with and declared effective by the Securities and Exchange Commission. Seafield has stated in the Original Report and the Prior Amendments that, except for rights granted to Seafield in the Securities Purchase Agreement filed as Exhibit (a) to Amendment No. 6, which rights are no longer material, it had no plans or proposals which relate to or would result in (i) the acquisition by any person of additional securities of Response, or the disposition of securities of Response; (ii) an extraordinary corporate transaction involving Response or any of its subsidiaries; (iii) a sale or transfer of a material amount of assets of Response or any of its subsidiaries; (iv) any change in the present board of directors or management of Response; (v) any material change in the present capitalization or dividend policy of Response; (vi) any other material change in Response's business or corporate structure; (vii) any change in Response's charter or bylaws which may impede the acquisition of control of Response by any person; (viii) causing a class of Response's securities 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; (ix) a class of equity securities of Response being eligible for termination of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934; or (x) any act similar to any of those enumerated above. The foregoing statement remains accurate, except as otherwise set forth herein or in the Prior Amendments. Item 5. Interest in Securities of the Issuer. (a), (b), (c) and (d) Seafield beneficially owns 8,077,392 shares of Response Common Stock. Seafield has sole power to vote and dispose of all of such shares. The number of shares beneficially owned by Seafield constitutes approximately 67.5% of Response's outstanding Common Stock, calculated in accordance with Exchange Act Rule 13d-3(d)(1). This percentage does not reflect shares subject to issue upon exercise of warrants, stock options or upon conversion of shares of Series A Convertible Preferred Stock of Response presently outstanding and owned by persons other than Seafield. Certain of the persons named in Schedule 1 are known by Seafield to beneficially own shares of Response stock. To Seafield's knowledge, these shares were acquired by such persons solely for investment purposes and such persons have sole power to vote and dispose of such shares. Seafield disclaims any beneficial ownership in any of such shares. The persons known to Seafield to beneficially own such shares and the number of such shares beneficially owned by such persons (with an indication of the shares which there is a right to acquire) are as follows: Name Number of Shares Joseph T. Clark 226,640 W. Thomas Grant, II 9,400 P. Anthony Jacobs 13,400 -6- James R. Seward 13,400 Of the number of shares shown above, the following numbers consist of options which the indicated individuals have the right to exercise either presently or within 60 days: for Joseph T. Clark, 221,840; for W. Thomas Grant II, 9,000; for P. Anthony Jacobs, 9,000 and for James R. Seward, 9,000. (e) Not Applicable. Item 6. Contracts, Arrangements, Understanding or Relationships with Respect to Securities of the Issuer. Response has granted Seafield registration rights with respect to all shares of Response Common Stock owned by Seafield pursuant to the Payment Agreement and the Securities Purchase Agreement. Item 7. Exhibits. 99.1 Agreement of Payment and Satisfaction, dated February 26, 1997. 99.2 Press Release of Seafield, from February 26, 1997. 99.3 Securities Purchase Agreement (previously filed as Exhibit (a) to Amendment No. 6). -7- 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. SEAFIELD CAPITAL CORPORATION By: /s/ James R. Seward James R. Seward, Executive Vice President Date: March 7, 1997 -8- SCHEDULE 1 Directors of Seafield Capital Corporation Name, Occupation and Business Address Lan C. Bentsen, Managing Partner Remington Partners (investments) 3040 Post Oak Boulevard, Suite 200 Houston, Texas 77056 John C. Gamble, Managing Partner Allen, Matkins Leck, Gamble and Mallory (law) 18400 Von Karmen, 4th Floor Irvine, California 92715 William D. Grant, Consultant Seafield Capital Corporation 2600 Grand Boulevard, Suite 500 Post Office Box 410949 Kansas City, Missouri 64141 W. Thomas Grant, II, Chairman of the Board and Chief Executive Officer/Seafield Capital Corporation; Chairman of the Board, President and Chief Executive Officer/LabOne, Inc. 2600 Grand Boulevard, Suite 500 Post Office Box 410949 Kansas City, Missouri 64141 Michael E. Herman Private Investor 9300 Ward Parkway Post Office Box 8480 Kansas City, Missouri 64114 P. Anthony Jacobs, President and Chief Operating Officer Seafield Capital Corporation 2600 Grand Boulevard, Suite 500 Post Office Box 410949 Kansas City, Missouri 64141 David W. Kemper, Chairman, President and Chief Executive Officer Commerce Bancshares, Inc. (banking) 1000 Walnut Street, 18th Floor Kansas City, Missouri 64106 -9- John H. Robinson, Jr., Managing Partner Black & Veatch (design and construction) Corporate Woods, Building 27 10975 Grandview Overland Park, Kansas 66210 James R. Seward, Executive Vice President and Chief Financial Officer Seafield Capital Corporation 2600 Grand Boulevard, Suite 500 Post Office Box 410949 Kansas City, Missouri 64141 Dennis R. Stephen, Chief Operating Officer Tennessee Farmers Insurance Companies (insurance) Post Office Box 307 Columbia, Tennessee 38401 Executive Officers of Seafield Capital Corporation Name, Position and Business Address W. T. Grant, II Chairman of the Board and Chief Executive Officer/Seafield Capital Corporation Chairman of the Board, President and Chief Executive Officer/LabOne, Inc. 2600 Grand Boulevard, Suite 500 Post Office Box 410949 Kansas City, Missouri 64141 P. Anthony Jacobs, President and Chief Operating Officer Seafield Capital Corporation 2600 Grand Boulevard, Suite 500 Post Office Box 410949 Kansas City, Missouri 64141 James R. Seward, Executive Vice President and Chief Financial Officer Seafield Capital Corporation 2600 Grand Boulevard, Suite 500 Post Office Box 410949 Kansas City, Missouri 64141 Steve K. Fitzwater, Vice President, Chief Accounting Officer and Secretary Seafield Capital Corporation 2600 Grand Boulevard, Suite 500 Post Office Box 410949 Kansas City, Missouri 64141 -10- Joseph T. Clark, President and Chief Executive Officer Response Oncology, Inc. 1775 Moriah Woods Boulevard Memphis, Tennessee 38117 -11- EXHIBIT INDEX 99.1 Agreement of Payment and Satisfaction, dated February 26, 1997. 99.2 Press Release of Seafield, from February 26, 1997. 99.3 Securities Purchase Agreement (previously filed as Exhibit (a) to Amendment No. 6). -12- EX-99 2 EXHIBIT 99.1 - AGREEMENT OF PAYMENT & SATISFACTION Exhibit 99.1 AGREEMENT OF PAYMENT AND SATISFACTION This Agreement is made as of the 26th day of February, 1997, between RESPONSE ONCOLOGY, INC., a Tennessee corporation ("Response") and SEAFIELD CAPITAL CORPORATION, a Missouri corporation ("Seafield"). WHEREAS, Response and Seafield previously entered into that certain Loan Agreement dated as of October 4, 1996 (the "Loan Agreement") pursuant to which Seafield agreed to loan to Response up to $23,500,000, with the indebtedness created as a result of said loan being evidenced by that certain Adjustable Rate Convertible Note, No. 1996A-1, dated October 4, 1996, in the principal amount of $23,500,000 (the "Note"); and WHEREAS, on the date hereof, the outstanding principal of the Note is $23,500,000; and WHEREAS, on the date hereof, the accrued interest on the Note is $664,287.66; and WHEREAS, the parties have agreed that Response will pay and discharge the principal of and the accrued interest on the Note and will satisfy its other obligations under the Loan Agreement through the issuance to Seafield of a number of shares of Response common stock, par value $.01 per share ("Stock") determined by dividing $8 into the aggregate of the principal of the Note as of the Closing Date (the "Principal Amount") and the accrued interest on the Note as of the Closing Date (the "Accrued Interest"); NOW, THEREFORE, in consideration of the premises, the mutual promises herein contained and for other good and valuable consideration the receipt whereof is hereby acknowledged, the parties agree as follows: 1. Stock Issuance. On the Closing Date, Response shall pay and discharge the Note by issuing to Seafield a number of shares of Stock determined by dividing the aggregate of the Principal Amount and the Accrued Interest by $8. Simultaneously therewith, Response shall cause to be delivered to Seafield a certificate evidencing said number of shares of Stock, which shares shall be duly authorized, validly issued and outstanding, fully paid and nonassessable. Said certificate shall contain no legends or other indications of restrictions on transfer other than a legend in substantially the following form: THE SECURITIES REPRESENTED BY THE CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF EFFECTIVE REGISTRATION STATEMENTS UNDER SUCH ACT AND LAWS OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 2. Cancellation of the Note. Upon issuance and delivery to Seafield of the shares of Stock provided for in Section 1 immediately above (the "Shares"), the Note shall have been paid in full. Thereupon, Seafield shall mark the Note "Canceled - Paid in Full" and shall return it to Response. 3. Termination of the Loan Agreement. Also upon issuance and delivery to Seafield of the Shares, the Loan Agreement and all of the rights and obligations of Response and Seafield thereunder shall be canceled, terminated and of no further force or effect. 4. Closing Date. The Closing Date shall be February 26, 1997, subject to satisfaction of all conditions to closing set forth in Section 7 below. 5. Registration Rights. The terms and provisions of Section 5.1 of that certain Security Purchase Agreement dated September 26, 1990 between Response and Seafield, as amended (the "Securities Purchase Agreement"), shall apply to Seafield and Response with respect to all shares of Stock owned by Seafield from time to time, including without limitation all the Shares issued pursuant to Section 1 hereof. To that end, the term "Shares" as used in said Section 5.1 shall hereafter include any and all shares of Response's common stock par value $0.01, whether acquired pursuant to the aforementioned Security Purchase Agreement, or thereafter and whether constituting Shares for purposes of this Agreement or otherwise. Nothing in this Section 5 shall serve to restrict or narrow any registration rights heretofore granted by Response to Seafield with respect to shares of Response's Stock. 6. Representations, Etc.. (a) Seafield represents that it has knowledge and experience in financial and business matters generally and that it has had access to Response's records, operational affairs and other matters continually since October, 1990 as a result of the fact that Seafield officers have been members of Response's Board of Directors since that date. Accordingly, Seafield is capable of evaluating the merits and risks of its purchase of the Shares and is able to bear the economic risks of said investment. The Shares are being acquired by Seafield solely for Seafield's own account and with no present intention of making public distribution thereof within the meaning of the Securities Act of 1933, as amended (the "Securities Act") other than pursuant to a registration statement declared 2 effective by the Securities and Exchange Commission. Seafield is aware that none of the Shares have been registered under the Securities Act or any state securities law and that, accordingly, the Shares must be held indefinitely unless they are subsequently registered or an exemption from such registration is available. (b) Seafield agrees that the provisions of Section 2.7 ("Transfer") of the Securities Purchase Agreement shall apply to the Shares. (c) Response represents that Seafield's acquisition of the Shares on the terms herein set forth has been approved by Response's Board of Directors; that the Seafield representatives on the Board of Directors did not participate in or vote upon such approval; that the Tennessee Business Combination Act as such term is defined in Chapter 35 of the Tennessee Business Corporation Act (the "Corporation Act") is not applicable to Seafield; and that the Tennessee Control Share Acquisition Act as such term is defined in Chapter 35 of the Corporation Act, is not applicable to Response nor to Seafield with respect to the Shares. 7. Conditions to Closing. The obligations of Seafield hereunder, and, specifically, the payment, satisfaction and cancellation of the Note in consideration of the receipt by Seafield of the Shares are subject to each and every one of the following: (a) The accuracy of and compliance with, as of the Closing Date, the representations, warranties and agreements herein contained; (b) The delivery to Seafield of an opinion of Response's counsel to the effect that, among other things, the Shares are duly authorized, validly issued and outstanding, fully paid and nonassessable, which opinion shall be in form reasonably acceptable to Seafield; and (c) Response shall have taken all actions, including without limitation the furnishing of notification under NASD Rule 4310(c)(17), and shall pay all fees and expenses necessary, to cause the Shares to be included in and eligible for trading on, and the Shares shall be included in and eligible for trading on, the NASDAQ National Market. 8. Binding Effect; Inurement; Assignment. (a) This Agreement and all of its terms and provisions will be binding upon and shall inure to the benefit of Response and Seafield and their respective successors and assigns. Response acknowledges and agrees that the rights and privileges afforded Seafield in this Agreement, including without limitation, those rights and privileges referred to in Section 5 hereof, are held, owned and possessed by Seafield, and all obligations of Response under or pursuant to the Securities Purchase Agreement as amended, including those contained in Section 5.1 of the Securities Purchase Agreement, 3 inure to the benefit of Seafield and its successors and assigns, notwithstanding (or as a result of) the previous assignment by Seafield to its then wholly-owned subsidiary Dakota Ventures, Inc., of Seafield's rights and privileges under the Securities Purchase Agreement and the subsequent merger of that subsidiary into Seafield. (b) Seafield may assign its rights and privileges under this Agreement to an entity which at the time of such assignment constitutes a wholly-owned subsidiary of Seafield if simultaneously with such assignment there are transferred to said subsidiaries some or all of the shares of Stock previously owned or as a consequence of this Agreement acquired by Seafield. Notwithstanding Seafield's assignment of such rights and privileges to a wholly-owned subsidiary, Seafield shall remain responsible for its representations herein contained. 9. Notices. All notices, requests and other communications under this Agreement shall be made as provided in the Securities Purchase Agreement. 10. Choice of Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Tennessee, without giving effect to the principles of conflict of law. 11. Counterparts. This Agreement may be executed in counterparts which together shall constitute one and the same instrument. 12. Entire Agreement. This Agreement, together with the Securities Purchase Agreement to the extent referred to or incorporated herein, constitutes the entire agreement between Response and Seafield relating to the subject matter hereof and there are no other terms of such agreement except those contained here and in the Securities Purchase Agreement. Nothing herein shall amend or otherwise modify or affect the terms and provisions of the Securities Purchase Agreement, as previously amended, all of which shall remain in full force and effect. This Agreement may not be modified or amended except in writing signed by both parties hereto. IN WITNESS WHEREOF, the parties have caused this Agreement of Payment and Satisfaction to be executed on their respective behalves on the date first above written. RESPONSE ONCOLOGY, INC. By: _______________________________ Name: _____________________________ Title: ____________________________ 4 SEAFIELD CAPITAL CORPORATION By: _______________________________ Name: _____________________________ Title: ____________________________ EX-99 3 EXHIBIT 99.2 - PRESS RELEASE Exhibit 99.2 Jim Seward Kim Schaefer February 26, 1997 SEAFIELD CAPITAL CORPORATION ANNOUNCES SUBSIDIARY NOTE CONVERSION AND PLANS TO EXPLORE DISTRIBUTION SUBSIDIARY STOCK TO SEAFIELD SHAREHOLDERS _______________________________ Kansas City, MO-Seafield Capital Corporation (Seafield) announced today that it has converted a $23.5 million Response Oncology, Inc. (Response) note and accrued interest thereon into Response common stock. The note was converted at $8 per share, resulting in 3,020,536 additional shares of Response owned by Seafield. Seafield now owns 8,077,392 shares of Response, or approximately 67% of Response shares outstanding. The conversion will increase Response's shareholders equity to approximately $62 million, and combined with Response's NationsBank credit facility, should place Response in a solid financial position to pursue the growth of its oncology services. With the conversion of the note having been completed, Seafield is exploring a possible distribution to its shareholders of all of its Response shares in the second quarter of 1997. However, Seafield expects that any distribution would be made only pursuant to a Registration Statement filed with and declared effective by the Securities and Exchange Commission. ######### -----END PRIVACY-ENHANCED MESSAGE-----