X0202 4 2004-07-23 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 2004-07-23 4 J 0 140 0.00 D Common Stock 70400 259 I see footnote Series A Preferred Stock Common Stock 249874 497 D The Series A Preferred Stock in 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. The Series A Preferred Stock is convertible into shares of common stock pursuant to a conversion price subject to a number of antidilution adjustments. This form is being filed to report a distribution by Palladin Capital Partners, LP to one of its partners. Immediately. The Series A Preferred Stock has no expiration date. As of July 23, 2004. Consists of 219 shares held by Palladin Capital Partners, LP, 20 shares held by MS2 Partners, LLC, and 20 shares held by Palladin Capital Group, Inc. By Palladin Capital Partners, LP, MS2 Partners, LLC and 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 2004-07-27