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OMB APPROVAL
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OMB Number 3235-0287
Expires: September 30, 1997
Estimated average burden
hours per response .......0.5
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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
[ ] Check this box if no longer subject of Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person(FN*)
Prometheus Senior Quarters LLC(1)
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(Last) (First) (Middle)
c/o Lazard Freres Real Estate Investors L.L.C.
30 Rockefeller Plaza, 63rd Floor
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(Street)
New York New York 10020
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Kapson Senior Quarters Corp. (KPSQ)
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
10/97
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5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
[ ] Director [ x ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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7. Individual or Joint/Group Filing
(Check Applicable Line)
[ ] Form filed by One Reporting Person
[ x ] Form filed by More than One Reporting Person
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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<TABLE>
<CAPTION>
6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly
[FN]
* If the form is filed by more than one reporting person, see Instruction
4(b)(v).
</FN>
FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<TABLE>
<CAPTION>
9. 10.
Number Owner-
of ship
2. Deriv- of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
of Derivative 6. of Underlying 8. ities Secur- of
Exer- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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Stock Option (Call) $16.00 10/14/97 J(2) 300,001 10/14/97 10/14/98 Common 300,001 See(2) 4,150,000 D and I See(3)
Stock below. below.
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</TABLE>
Explanation of Responses:
(1) This Form 4 is also filed on behlf of Lazard Freres Real Estate Investors
L.L.C.
(2) Pursuant to a Stockholders Agreement, dated as of September 30, 1997 (the
"Agreement"), between Prometheus Senior Quarters LLC ("Prometheus") and
certain stockholders (the "Stockholders") of Kapson Senior Quarters Corp.
(the "Company"), the Stockholders granted Prometheus an option (the
"Option") to purchase 3,849,999 shares of the Common Stock, $.01 par value
per share, of the Company (the "Shares") beneficially owned by the Stock-
holders. On October 14, 1997, the Agreement was amended and the
number of Shares covered by the Option was increased to include 300,001
shares over which the Stockholders had dispositive power pursuant to
a power of attorney.
(3) Prometheus Senior Quarters LLC is the direct beneficial owner of the Stock
Option. Lazard Freres Real Estate Investors L.L.C., as the sole member of
Prometheus Senior Quarters LLC, may be deemed beneficial owner of the Stock
Option owned by Prometheus Senior Quarters LLC. However, this Form 4 shall
not be deemed an admission that Lazard Freres Real Estate Investors, L.L.C.
is the beneficial owner of the Stock Option covered by this statement.
Signature of Reporting Person(s)
Prometheus Senior Quarters LLC
By: Lazard Freres Real Estate
Investors L.L.C.
By: /s/ Murry N. Gunty March 6, 1998
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Murry N. Gunty
Principal
Lazard Freres Real Estate Investors L.L.C.
By: /s/ Murry N. Gunty March 6, 1998
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Murry N. Gunty
Principal
[FN]
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
</FN>
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedures.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
