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- -------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION -----------------------------
FORM 3 WASHINGTON, D.C. 20549 OMB APPROVAL
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INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES OMB Number: 3235-0104
Expires: September 30, 1998
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Estimated average burden
Section 17(a) of the Public Utility Holding Company Act of 1935 or hours per response .... 0.5
(Print or Type Responses) Section 30(f) of the Investment Company Act of 1940 -----------------------------
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1. Name and Address of Reporting Person* 2. Date of Event Re- 4. Issuer Name AND Ticker or Trading Symbol
quiring Statement
Sun Healthcare Group, Inc. (Month/Day/Year) Retirement Care Associates, Inc. (RCA)
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(Last) (First) (Middle) 02/17/97 5. Relationship of Reporting Person(s) 6. If Amendment, Date
----------------------- to Issuer (Check all applicable) of Original
3. IRS or Social Se- Director X 10% Owner (Month/Day/Year)
curity Number of ---- ----
101 Sun Lane, NE Reporting Person Officer (give Other (specify ---------------------
- ------------------------------------------------- (Voluntary) title below) below) 7. Individual or
(Street) ---- ---- Joint/Group Filing
85-0430612 (Check Applicable
Line)
--------------------------- Form filed by One
Reporting Person
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Form filed by
More than One
Reporting Person
Albuquerque, NM 87109 ---
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(City) (State) (Zip) TABLE I -- NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
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1. Title of Security 2. Amount of Securities 3. Ownership 4. Nature of Indirect Beneficial
(Instr. 4) Beneficially Owned Form: Direct Ownership (Instr. 5)
(Instr. 4) (D) or Indirect
(I) (Instr. 5)
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Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (Over)
* If the form is filed by more than one reporting person, SEE Instruction 5(b)(v). SEC 1473 (7-96)
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FORM 3 (CONTINUED) TABLE II - DERIVATIVE SECURITIES BENEFICIALLY OWNED (E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE
SECURITIES)
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1. Title of Derivative Security 2. Date Exer- 3. Title and Amount of Securities 4. Conver- 5. Owner- 6. Nature of Indirect
(Instr. 4) cisable and Underlying Derivative Security sion or ship Beneficial
Expiration (Instr. 4) Exercise Form of Ownership
Date Price of Deriv- (Instr. 5)
(Month/Day/ Deri- ative
Year) vative Security:
-------------------------------------------------- Security Direct
Amount (D) or
Date Expir- of Indirect
Exer- ation Title Number (I)
cisable Date of
Shares (Instr. 5)
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(1) (2) (3) Common Stock, par 5,001,637 $9.27 D
value $0.0001 per
share
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Explanation of Responses:
* Please See Attached
/s/ Robert D. Woltil 02/27/97
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**Intentional misstatements or omissions of facts constitute Federal **Signature of Reporting Person Date
Criminal Violations. SEE 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient,
SEE Instruction 6 for procedure.
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. Page 2
SEC 1473 (7-96)
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Attachement to Initial Statement of Beneficial Ownership
of Securities by Sun Healthcare Group, Inc.
Explanation of responses:
(1) Sun Healthcare Group, Inc. ("Parent") entered into a Stockholders Stock
Option and Proxy Agreement (the "Stock Option Agreement"), dated February
17, 1997, with Chris Brogdon, Connie Brogdon, Edward E. Lane, Darrell C.
Tucker and Winter Haven Homes, Inc. (each a "Stockholder"), the aggregate
beneficial owners of 5,001,637 shares of common stock (the "Shares") of
Retirement Care Associates, Inc. (the "Company"), pursuant to which each
Stockholder granted to Parent an irrevocable option (a "Stock Option") to
purchase each Stockholder's Shares at $9.27 per share, and granted to the
Board of Directors of Parent an irrevocable proxy to vote all Shares in
favor of the Agreement and Plan of Merger and Reorganization, dated
February 17, 1997, among Parent, Peach Acquisition Corporation ("Merger
Sub") and the Company (the "Merger Agreement") and the attendant merger of
the Company with and into Merger Sub (the "Merger") and against any merger,
consolidation, sale of assets, reorganization or recapitalization of the
Company with any party other than Parent and its affiliates and against any
liquidation or winding up of the Company. Each Stockholder also agreed to
cause the shares of the Company owned by it to approve the Merger.
Further, each Stockholder is prohibited from disposing of or encumbering
the Shares, entering into any proxy or voting agreement or entering into
any contract, option or other arrangement with respect to the acquisition,
sale, assignment, transfer or other disposition of any Stockholder-owned
Company common or preferred stock.
(2) Provided that (i) to the extent necessary, any applicable waiting periods
(and any extension thereof) under the Hart-Scott-Rodino Antitrust
Improvement Act of 1976 and the rules and regulations promulgated
thereunder (the "HSR ACT") with respect to the exercise of an Option has
expired or been terminated and (ii) no preliminary or permanent injunction
or other order, decree or ruling issued by any court or governmental or
regulatory authority, domestic or foreign, of competent jurisdiction
prohibiting the exercise of an Option or the delivery of Shares is in
effect, Parent may exercise any or all of the Options at any time following
the earlier of (i) the termination of the Merger Agreement (other than a
termination due to the entering of any final governmental order, writ,
injunction or decree preventing the consummation of the Merger by any court
of competent jurisdiction) and (ii) the first occurrence of a competing
transaction until the expiration of such Options.
(3) Each Option shall expire if (i) such Option is not exercised prior to the
close of business on the 120th day following termination of the Merger
Agreement, (ii) if the Merger Agreement is terminated due to the entering
of any final governmental order, writ, injunction or decree preventing the
consummation of the Merger by any court of competent jurisdiction, or (iii)
if the average of the last reported sales prices of one
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share of Parent Common Stock on the New York Stock Exchange during the
period of the 20 most recent trading days ending on the fifth business day
prior to the date on which the effective time of the Merger is expected
to occur is less than $12.07.
