X0203 3 2010-11-15 0 0000904978 SUN HEALTHCARE GROUP INC SUNHD 0001184159 MATHIES WILLIAM A 18831 VON KARMAN SUITE 400 IRVINE CA 92612 0 1 0 0 CEO and Chairman Common Stock 67523 D Common Stock 67250 I By Mathies Family Trust Employee Stock Option (Right to Buy) 9.89 2013-05-30 Common Stock 16527 D Employee Stock Option (Right to Buy) 14.89 2014-03-14 Common Stock 22685 D Employee Stock Option (Right to Buy) 15.02 2015-03-16 Common Stock 83025 D Employee Stock Option (Right to Buy) 11.92 2016-03-16 Common Stock 50645 D Employee Stock Option (Right to Buy) 11.82 2017-03-23 Common Stock 50645 D On November 15, 2010, the Issuer, formerly known as SHG Services, Inc., became the successor to the Issuer's former parent company, Sun Healthcare Group, Inc.("Old Sun"), following a spin-off transaction pursuant to which, on November 15, 2010, Old Sun distributed to each of its stockholders one share of the Issuer's Common Stock for every three shares of Old Sun's Common Stock held by such stockholders as of the close of business on November 5, 2010 (the "Separation"). This Report is being filed voluntarily by the Reporting Person solely to report the shares of the Issuer's Common Stock beneficially owned by the Reporting Person following the Separation. Consists of unvested restricted stock units that have not yet been paid in shares of the Issuer's Common Stock. The option became exercisable at the rate of 25% on each of May 31, 2007, 2008, 2009 and 2010. The option became exercisable at the rate of 25% on each of March 15, 2008, 2009 and 2010, and becomes exercisable as to 25% on March 15, 2011. The option became exercisable at the rate of 25% on each of March 15, 2009 and 2010, and becomes exercisable at the rate of 25% on each of March 15, 2011 and 2012. The option became exercisable as to 25% on March 15, 2010, and becomes exercisable at the rate of 25% on each of March 15, 2011, 2012 and 2013. This option becomes exercisable at the rate of 25% on each of March 15, 2011, 2012, 2013, and 2014. Michael T. Berg, Attorney in Fact 2010-11-19