Certificate of Chief Financial Officer Relating to Warrant Adjustment—Ruth’s Chris Steak House, Inc. and First Union Investors, Inc.
This certificate, issued by the Chief Financial Officer of Ruth’s Chris Steak House, Inc., confirms an adjustment to the number of shares purchasable under a Common Stock Purchase Warrant originally issued to First Union Investors, Inc. The adjustment was required because the company issued new shares to officers and directors at a price below fair market value, triggering a recalculation of the warrant terms. As a result, the number of shares First Union Investors, Inc. can purchase under the warrant increased from 37,735.849 to 41,133.402 shares.
EXHIBIT 10.7
CERTIFICATE
OF
CHIEF FINANCIAL OFFICER
OF
RUTHS CHRIS STEAK HOUSE, INC.
(formerly Ruth U. Fertel, Inc.)
Under Common Stock Purchase Warrant
Dated September 17, 1999
This certificate has been prepared pursuant to Section 6(d)(ii) of Ruth U. Fertel, Inc. Common Stock Purchase Warrant Certificate No. W-1 (the Warrant), dated September 17, 1999, issued in the name of First Union Investors, Inc. to purchase 37,735.849 shares (the Aggregate Number, as defined in the first paragraph of the Warrant) of Class B Common Stock, par value $0.01 per share (the Common Stock) of Ruth U. Fertel, Inc., now Ruths Chris Steak House, Inc. (the Company).
On November 8, 2004, the Company issued a total of 56,257 shares (the Shares) of its authorized but previously unissued Common Stock to five of its officers and two of its outside directors at a price of $0.05 per share, payable in cash, which is less than the Closing Fair Market Value Per Share, as defined in Section 7 of the Warrant.
Section 6(a)(iii) of the Warrant requires an adjustment of the Aggregate Number by reason of the sale of the Shares. The new Aggregate Number, after adjustment to reflect the sale of the Shares, is 41,133.402. The new Aggregate Number was calculated by the method set forth in Exhibit A attached hereto.
November 8, 2004
/S/ THOMAS J. PENNISON JR. | ||
Thomas J. Pennison Jr., Chief Financial Officer of Ruths Chris Steak House, Inc. |
EXHIBIT A
TO
CERTIFICATE OF CHIEF FINANCIAL OFFICER
OF
RUTHS CHRIS STEAK HOUSE, INC.
(formerly Ruth U. Fertel, Inc.)
Current Shares Outstanding (1) | 500,000.000 | ||
Shares Issuable Upon Exercise of Warrants, Options, etc. (2) | 121,428.294 | ||
Closing Fair Market Value/Share (3) | $ | 10.000 | |
New Shares Proposed To Be Issued (4) | 56,257.000 | ||
Price/New Share | $ | 0.050 | |
Proceeds From Issuance (5) | $ | 2,812.850 | |
Aggregate Number of First Union Warrant Shares (6) | 37,735.849 | ||
Formula For Calculating New Aggregate Number
|
(6) | x | (1)+(2)+(4) | which equals new Aggregate Number: | 41,133.402 | ||||
(1)+(2)+((5)/(3)) | ||||||||
Additional Shares: | 3,397.553 |