Exhibit 99.2

                            SHARPER IMAGE CORPORATION

                         NOTICE OF GRANT OF STOCK OPTION

                  Notice is hereby  given of the  following  option  grant  (the
"Option") to purchase  shares of the Common Stock of Sharper  Image  Corporation
(the "Corporation"):

                  Optionee:
                  --------   ---------------------------------------------------

                  Grant Date:
                  ----------   -------------------------------------------------

                  Vesting Commencement Date:
                  -------------------------   ----------------------------------

                  Exercise Price:  $                                   per share
                  --------------     ---------------------------------

                  Number of Option Shares:                                shares
                  -----------------------   -----------------------------

                  Expiration Date:
                  ---------------   --------------------------------------------

                 Type of Option:    ---------  Incentive Stock Option

                                    ---------  Non-Statutory Stock Option

                  Exercise  Schedule:  The Option shall become  exercisable  for
                  twenty  percent  (20%) of the Option  Shares  upon  Optionee's
                  completion of Service  through  January 31,  200__,  and shall
                  become  exercisable  for the balance of the Option Shares in a
                  series of four (4) successive equal annual  installments  upon
                  Optionee's  completion of each additional year of Service over
                  the four (4)-year  period  measured from January 31, 200__. In
                  no  event  shall  the  Option  become   exercisable   for  any
                  additional   Option  Shares  after  Optionee's   cessation  of
                  Service.

                  Optionee  understands  and  agrees  that the Option is granted
subject to and in  accordance  with the terms of the Sharper  Image  Corporation
2000 Stock Incentive Plan (the "Plan").  Optionee  further agrees to be bound by
the  terms of the Plan and the  terms of the  Option  as set  forth in the Stock
Option Agreement attached hereto as Exhibit A. Optionee hereby  acknowledges the
receipt of a copy of the official  prospectus  for the Plan in the form attached
hereto as Exhibit B. A copy of the Plan is  available  upon  request made to the
Corporate Secretary at the Corporation's principal offices.

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                  Employment at Will.  Nothing in this Notice or in the attached
Stock Option  Agreement  or in the Plan shall confer upon  Optionee any right to
continue  in Service for any period of specific  duration or  interfere  with or
otherwise  restrict in any way the rights of the  Corporation  (or any Parent or
Subsidiary  employing  or retaining  Optionee) or of Optionee,  which rights are
hereby expressly  reserved by each, to terminate  Optionee's Service at any time
for any reason, with or without cause.

                  Definitions.  All capitalized  terms in this Notice shall have
the  meaning  assigned to them in this Notice or in the  attached  Stock  Option
Agreement.

DATED:
       -------------------------

                                       SHARPER IMAGE CORPORATION

                                       By:
                                            ------------------------------------

                                       Title:
                                               ---------------------------------


                                       -----------------------------------------
                                                          OPTIONEE

                                       Address:
                                                 -------------------------------



ATTACHMENTS

Exhibit A - Stock Option Agreement
Exhibit B - Plan Summary and Prospectus

                                       2

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                                    EXHIBIT A

                             STOCK OPTION AGREEMENT


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                                    EXHIBIT B

                           PLAN SUMMARY AND PROSPECTUS