X0202 4 2007-02-27 0 0000904978 SUN HEALTHCARE GROUP INC SUNH 0001291897 Looney Steven M 111 JOHN STREET SUITE 1510 NEW YORK NY 10038 1 0 0 0 Common Stock 2007-02-27 4 A 0 5933 0 A 10998 D Option (Right to Buy) 8.21 2007-02-27 4 A 0 5933 0 A 2013-05-30 Common Stock 5933 5933 D Grant of restricted stock units. The units were originally awarded May 31, 2006 under the Issuer's 2004 Equity Incentive Plan, but were subject to the satisfaction of certain performance targets. On February 27, 2007, the Issuer's Compensation Committee determined the level that those performance targets were satisfied. The units vest at the rate of 25% on each of June 30, 2007 and May 31, 2008, 2009 and 2010 and, upon vesting, will be paid on a one-for-one basis in shares of the Issuer's Common Stock. Includes 10,282 restricted stock units that have not yet been paid in shares of the Issuer's common stock. Grant of stock options. The options were originally awarded May 31, 2006 under the Issuer's 2004 Equity Incentive Plan, but were subject to the satisfaction of certain performance targets. On February 27, 2007, the Issuer's Compensation Committee determined the level that those performance targets were satisfied. The options vest at the rate of 25% on each of May 31, 2007, 2008, 2009 and 2010. Michael T. Berg, Attorney in Fact 2007-03-01