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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4 OMB APPROVAL
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[_] Check this box if no longer OMB NUMBER: 323509194
subject to Section 16. Form 4 Expires: September 30, 1998
or Form 5 obligations may Estimated average burden
continue. See Instruction 1(b). hours per response ...... 0.5
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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
(Print or Type Responses)
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1. Name and Address of Reporting Person*
Kayne, Fred
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(Last) (First) (Middle)
c/o Fortune Financial, 1800 Avenue of the Stars, Suite 310
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(Street)
Los Angeles, California 90067
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
The Right Start, Inc. (RTST)
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
October 2000
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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 X 10% Owner
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Officer (give Other (Specify
----- title below) ------ below)
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7. Individual or Joint/Group Filing (Check Applicable Line)
Form filed by One Reporting Person
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x Form filed by More than One Reporting Person
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<TABLE>
<CAPTION>
Table 1 -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security 2. Trans- 3. Trans- 4. Securities Acquired (A) 5. Amount of 6. Ownership 7. Nature
(Instr. 3) action action or Disposed of (D) Securities Form: of Indirect
Date Code Beneficially Direct Beneficial
(Instr. 8) (Instr. 3,4 and 5) Owned at (D) or Ownership
(Month/ ------------ -------------------------- End of Month Indirect (Instr. 4)
Day/ Code V Amount (A) or Price (Instr. 3 (I)
Year) (D) and 4) (Instr. 4)
-------------------------- ---------- ------ ---- -------- ------ ------ -------------- ------------ -------------
<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.
* If the form is filed by more than one reporting person, see Instruction
4(b)(v).
(Print or Type Responses)
(Over)
SEC 1474 (7-96)
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<PAGE>
FORM 4 (continued)
<TABLE>
<CAPTION>
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security 2. Conversion 3. Transaction 4. Transacation 5. Number of Derivative 6. Date Exercisable
(Instr. 3) or Exercise Date Code Securities Acquired (A) and Expiration
Price of (Month/Day/ or Disposed of (D) Date
Derivative Year) (Instr. 3, 4 and 5) (Month/Day/
Security Year)
--------------- -------------------------- -------------------
Code V (A) (D) Date Expiration
Exer- Date
cisable
------------------------------- -------------- -------------- -------- ----- --------------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Director Options (right to buy) $4.13 8/1/00 A V 1,500 8/1/01 8/1/10
------------------------------- -------------- -------------- -------- ----- --------------- ---------- -------- ----------
Compensation Deferral Options
(right to buy) $4.13 8/1/00 A V 7,648 8/1/01 8/1/05
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Series D Convertible
Pay-in-Kind
Preferred Stock(1) (1) 10/6/00 J(2) P 400,000 10/6/00 None
------------------------------- -------------- -------------- -------- ----- --------------- ---------- -------- ----------
Warrants to buy $2.00 10/6/00 J(2) P 80,000 10/6/00 10/6/05
------------------------------- -------------- -------------- -------- ----- --------------- ---------- -------- ----------
</TABLE>
<TABLE>
<CAPTION>
7. Title and Amount of 8. Price of Derivative 9. Number of Derivative 10. Ownership Form 11. Nature of Indirect
Underlying Securities Security (Instr. 5) Securities Beneficially of Derivative Security: Beneficial Ownership
(Instr. 3 and 4) Owned at End of Month Direct (D) or (Instr. 4)
Instr. 4) Indirect (I) (Instr. 4)
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Title Amount or
Number of
Shares
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<S> <C> <C> <C> <C>
Common Stock 1,500 1,500 D
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Common Stock 7,648 $ 12,000 7,648 D
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Common Stock 400,000 $800,000(3) 400,000 I Sole shareholder(4)
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Common Stock 80,000 (3) 80,000 I Sole shareholder(4)
------------------------ ---------------------- -------------------------- --------------------------- ------------------------
</TABLE>
Explanation of Responses:
* All common stock numbers reported herein have been adjusted for a 1-for-2
reverse stock split effective as of December 15, 1998.
(1) The conversion rate is equal to $100 (the liquidation price of the Series D
Convertible Pay-in-Kind Preferred Stock) divided by $2.00 (the conversion
price now in effect). As of the date hereof, one share of Series D
Convertible Pay-in-Kind Preferred Stock is convertible into 50.00 shares of
common stock, without further payment to the Issuer.
(2) The Series D Convertible Preferred Stock and Warrants were acquired by
Fortune Twenty-Fifth from the Issuer in a private placement.
(3) Purchasers of Series D Convertible Pay-in-Kind Preferred Stock received, at
no additional cost, Warrants exercisable for Common Stock equal in amount
to 20% of the shares of Common Stock into which the purchased Series D
Convertible Pay-in-Kind Preferred Stock is convertible.
(4) Fred Kayne is the sole shareholder of Fortune Twenty-Fifth, Inc., the owner
of the securities.
**Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
/s/ Fred Kayne 11/10/00
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**Signature of Reporting Person Date
Note: File three copies of this Form, one of which must be manually signed. If
space provided is insufficient, See Instruction 6 for procedure.
SEC 1474 (7-96)
