Michael T. Caracci and Cindy W. Caracci, et al. - Page 5




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                                  FINDINGS OF FACT                                    
               Some facts have been stipulated.  We incorporate herein by             
          this reference the parties’ stipulation of facts and the exhibits           
          submitted therewith.  We find the stipulated facts accordingly.             
          The couples, Michael and Cindy Caracci, Victor and Joyce Caracci,           
          Vincent and Denise Caracci, and Christina and David McQuillen,              
          are husband and wife, each of whom resided in Mississippi when              
          the petitions were filed.  Christina McQuillen is the sister of             
          Michael and Vincent Caracci, and the three of them are the                  
          children of Victor and Joyce Caracci (the father, mother, and               
          three children are referred to collectively as the Caracci                  
          family).  The principal place of business of the various Sta-Home           
          entities also was in Mississippi at that time.                              
               From 1973 to 1976, Joyce Caracci served as a consulting                
          nurse for the State of Mississippi Board of Health, surveying               
          health care facilities for participation in the Medicare/Medicaid           
          programs.  On May 3, 1976, Joyce Caracci, Victor Caracci, and a             
          third individual not relevant herein started Sta-Home Home Health           
          Agency, Inc.  Approximately 1 year later, Joyce Caracci, Victor             
          Caracci, and a third individual not relevant herein formed the              
          other two Sta-Home tax-exempt entities.  Each of the Sta-Home               
          tax-exempt entities was formed as a nonstock corporation under              
          Mississippi law, with Victor and Joyce Caracci as the owners                








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