X0202 4 2003-10-31 0 0000863821 RESTORATION HARDWARE INC RSTO 0001051756 SCHWARTZ MARK J C/O PALLADIN CAPITAL ONE ROCKEFELLER PLAZA, 10TH FLOOR NEW YORK NY 10020 1 0 0 0 Series A Preferred Stock 1.9902 2003-10-31 4 J 0 839 0 D Common Stock 421565 399 I By Palladin Capital Partners, LP, MS2 Partners, LLC and Palladin Capital Group, Inc. Series A Preferred Stock 1.9902 Common Stock 249724 497 D The Series A Preferred Stock is convertible into common stock based on a formula using outstanding preferred stock, common stock, and exercisable options within a certain period of time as set forth in the Certificate of Designation. As of October 31, 2003, the Series A Preferred Stock is convertible into shares of common stock pursuant to a ratio of one share of Series A Preferred Stock to 502.462 shares of common stock, subject to a number of antidilution adjustments. Distribution by Palladin Capital Partners, LP. to limited partners who elected to convert the Series A Preferred shares into shares of common stock. Immediately. Not applicable. As of October 31, 2003. Consists of 359 shares held by Palladin Capital Partners, LP, 20 shares held by MS2 Partners, LLC, and 20 shares held by Palladin Capital Group, Inc. The reporting person is the managing member of Palladin Investments, LLC which is the general partner of Palladin Capital Partners, LP. The reporting person is also the managing member of MS2 Partners, LLC and owns all outstanding shares of Palladin Capital Group, Inc. /s/ Mark J. Schwartz 2004-05-11