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
[X] 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*
Gheewalla, Robert R.
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(Last) (First) (Middle)
c/o Goldman Sachs & Co.
85 Broad Street
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(Street)
New York, New York 10004
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Recovery Engineering, Inc. (REIN)
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
September 1999
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5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person to Issuer
(Check all applicable)
[ x ] Director [ ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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7. Individual or Joint/Group Filing (Check applicable line)
[ x ] Form filed by one Reporting Person
[ ] 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) (Month/Day/Year) Code V (D) and 4) (Instr.4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock 9/17/99 M 4,000 A $25.82 0 I 01,02
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Common Stock 9/17/99 M 4,000 A $24.01 0 I 01,02
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Common Stock 9/17/99 M 4,000 A $ 5.84 0 I 01,03
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Common Stock 9/17/99 M 1,000 A $11.26 0 I 01,03
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Common Stock 9/17/99 C 1,010,101 A $14.85 0 I 01,04
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Common Stock 9/29/99 U 1,023,101 D $35.25 0 05 01,05
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</TABLE>
* If the Form is filed by more than one Reporting Person, see Instruction
4(b)(v).
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(Print or Type Responses) (Over)
<PAGE>
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
or 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>
Stock Option $25.82 9/17/99 M 4,000 10/23/98 4/23/03 Common 4,000 0 I 01,02
(right to buy) Stock
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Stock Option $24.01 9/17/99 M 4,000 8/3/98 2/3/03 Common 4,000 0 I 01,02
(right to buy) Stock
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Stock Option $5.84 9/17/99 M 4,000 10/24/97 4/24/02 Common 4,000 0 I 01,03
(right to buy) Stock
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Stock Option $11.26 9/17/99 M 1,000 7/19/96 7/19/01 Common 1,000 0 I 01,03
(right to buy) Stock
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5% Convertible $14.85 9/29/99 C 1,010,101 3/31/97 7/19/01 Common 1,010,101 0 I 01,04
Notes due 2003 Stock
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</TABLE>
<PAGE>
Explanation of Responses:
01: The Reporting Person is a vice president of Goldman, Sachs & Co. ("Goldman
Sachs"). Goldman Sachs is an indirect wholly owned subsidiary of The Goldman
Sachs Group, Inc. ("GS Group"). The Reporting Person does not have a pecuniary
interest in the Securities reported herein and, accordingly, disclaims
beneficial ownership thereof.
02: These options were granted under the Recovery Engineering, Inc. 1993
Director Stock Option Plan to the Reporting Person in his capacity as a director
of the Issuer. The Reporting Person has an agreement with GS Group pursuant to
which he held the stock options for the benefit of GS Group.
03: These options were granted under the Recovery Engineering, Inc. 1993
Director Stock Option Plan to the Reporting Person in his capacity as a director
of the Issuer. The reporting person has an agreement with GS Group pursuant to
which he held the stock options for the benefit of GS Group.
04: Goldman Sachs and GS Group may be deemed to own beneficially and indirectly
up to 1,010,101 shares of common stock of the Issuer ("Common Stock") by reason
of the ownership by certain investment partnerships (collectively, the "Limited
Partnerships") of $15,000,000 principal amount in 5% Convertible Notes due 2003
(the "Notes"), which were converted into 1,010,101 shares of Common Stock, in
the aggregate. Affiliates of Goldman Sachs and GS Group are the general partner,
managing partner or managing general partner of the Limited Partnerships.
05: The Reporting Person tendered the Common Stock to Tenzing, Inc. ("Tenzing"),
a direct wholly owned subsidiary of The Procter & Gamble Company, pursuant to
Tenzing's offer to purchase for cash all of the outstanding shares of Common
Stock. 1,010,101 shares of Common Stock were tendered by the Limited
Partnerships and 13,000 shares of Common Stock were tendered by directors of the
Issuer on behalf of GS Group.
**Signature of Reporting Person
By: /s/ Hans L. Reich
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Name: Hans L. Reich
Title: Attorney-in-fact
Date: October 12, 1999
** Intentional misstatements or omissions of facts constitute Federal
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.
