Exhibit 99.8

                            SHARPER IMAGE CORPORATION

                        AUTOMATIC STOCK OPTION AGREEMENT

RECITALS

         A. The Corporation  has  implemented an automatic  option grant program
under the Plan pursuant to which eligible non-employee members of the Board will
automatically  receive  special  option grants at periodic  intervals over their
period of Board service in order to provide such  individuals  with a meaningful
incentive to continue to serve as members of the Board.

         B.  Optionee  is  an  eligible  non-employee  Board  member,  and  this
Agreement is executed pursuant to, and is intended to carry out the purposes of,
the Plan in connection  with the automatic grant of an option to purchase shares
of Common Stock under the Plan.

         C. All  capitalized  terms in this  Agreement  shall  have the  meaning
assigned to them in the attached Appendix.

                  NOW, THEREFORE, it is hereby agreed as follows:

                  1. Grant of Option. The Corporation hereby grants to Optionee,
as of the Grant  Date,  a  Non-Statutory  Option to purchase up to the number of
Option  Shares  specified  in the  Grant  Notice.  The  Option  Shares  shall be
purchasable from time to time during the option term specified in Paragraph 2 at
the Exercise Price.

                  2.  Option  Term.  This  option  shall have a term of ten (10)
years measured from the Grant Date and shall accordingly  expire at the close of
business on the Expiration  Date,  unless sooner  terminated in accordance  with
Paragraph 5, 6 or 7.

                  3. Limited Transferability.

                           (a) This  option may be  assigned in whole or in part
during  Optionee's  lifetime to one or more members of Optionee's family or to a
trust  established for the exclusive  benefit of one or more such family members
or to Optionee's  former spouse,  to the extent such assignment is in connection
with the Optionee's  estate plan or pursuant to a domestic  relations order. The
assigned  portion shall be exercisable only by the person or persons who acquire
a  proprietary  interest in the option  pursuant to such  assignment.  The terms
applicable to the assigned portion shall be the same as those in effect for this
option immediately prior to such assignment.

                           (b)  Should  the  Optionee  die  while  holding  this
option, then this option shall be transferred in accordance with Optionee's will
or the laws of inheritance.  However, Optionee may designate one or more persons
as the beneficiary or  beneficiaries  of this option,



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and this option shall, in accordance  with such  designation,  automatically  be
transferred to such

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beneficiary  or  beneficiaries  upon the  Optionee's  death while  holding  this
option.  Such  beneficiary or  beneficiaries  shall take the transferred  option
subject to all the terms and conditions of this  Agreement,  including  (without
limitation)  the limited time period  during which this option may,  pursuant to
Paragraph 5, be exercised following Optionee's death.

                  4. Exercisability/Vesting.

                           (a) This option shall be immediately  exercisable for
any or all of the Option  Shares,  whether  or not the Option  Shares are at the
time  vested in  accordance  with the  Vesting  Schedule,  and  shall  remain so
exercisable  until the Expiration Date or sooner  termination of the option term
under Paragraph 5, 6 or 7.

                           (b) Optionee  shall,  in accordance  with the Vesting
Schedule set forth in the Grant Notice, vest in the Option Shares in one or more
installments  over his or her period of Board service.  The Option Shares shall,
however,  be  subject to  accelerated  vesting  pursuant  to the  provisions  of
Paragraph  5, 6 or 7. In no  event  shall  any  additional  Option  Shares  vest
following Optionee's cessation of service as a Board member.

                  5. Cessation of Board Service.  Should Optionee's service as a
Board member cease while this option remains  outstanding,  then the option term
specified  in  Paragraph 2 shall  terminate  (and this option  shall cease to be
outstanding)  prior to the  Expiration  Date in  accordance  with the  following
provisions:

                           (a) Should  Optionee cease to serve as a Board member
for any reason (other than death or Permanent  Disability)  while this option is
outstanding,  then the period during which this option may be exercised shall be
reduced to a twelve  (12)-month  period measured from the date of such cessation
of Board  service,  but in no event shall this option be exercisable at any time
after the Expiration Date.  During such limited period of  exercisability,  this
option may not be exercised in the  aggregate for more than the number of Option
Shares (if any) in which  Optionee is vested on the date of his or her cessation
of  Board  service.  Upon  the  earlier  of (i) the  expiration  of such  twelve
(12)-month  period or (ii) the  specified  Expiration  Date,  the  option  shall
terminate and cease to be  exercisable  with respect to any vested Option Shares
for which the option has not been exercised.

                           (b) Should Optionee die during the twelve  (12)-month
period  following  his or her cessation of Board service and hold this option at
the time of his or her death,  then the personal  representative  of  Optionee's
estate or the person or persons to whom the option is  transferred  pursuant  to
Optionee's  will or the laws of  inheritance  or the  designated  beneficiary or
beneficiaries  of this  option  (as the case  may be)  shall  have the  right to
exercise  this option for any or all of the Option  Shares in which  Optionee is
vested at the time of  Optionee's  cessation of Board  service  (less any Option
Shares  purchased by Optionee after such cessation of Board service but prior to
death). Any such right to exercise this option shall terminate,  and this option
shall  accordingly  cease to be exercisable for such vested Option Shares,  upon
the earlier of (i) the expiration of the twelve  (12)-month period measured from
the  date of  Optionee's  cessation  of  Board  service  or (ii)  the  specified
Expiration Date.

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                           (c) Should  Optionee  cease service as a Board member
by reason of death or Permanent  Disability,  then any Option Shares at the time
subject to this option but not otherwise  vested shall vest in full so that this
option  may be  exercised  for any or all of the Option  Shares as fully  vested
shares of Common Stock at any time prior to the earlier of (i) the expiration of
the twelve (12)-month  period measured from the date of Optionee's  cessation of
Board service or (ii) the specified Expiration Date, whereupon this option shall
terminate and cease to be outstanding.

                           (d) Upon  Optionee's  cessation of Board  service for
any  reason  other  than  death  or  Permanent  Disability,  this  option  shall
immediately  terminate and cease to be  outstanding  with respect to any and all
Option  Shares  in which  Optionee  is not  otherwise  at that  time  vested  in
accordance with the normal Vesting Schedule or the special vesting  acceleration
provisions of Paragraphs 6 and 7 below.

                  6. Corporate Transaction.

                           (a) In the event of a Corporate  Transaction effected
during Optionee's period of Board service, any Option Shares at the time subject
to this option but not otherwise  vested shall  automatically  vest so that this
option  shall,  immediately  prior  to the  specified  effective  date  for that
Corporate Transaction,  become exercisable for all of the Option Shares as fully
vested  shares of  Common  Stock  and may be  exercised  for any or all of those
vested  shares.   Immediately   following  the  consummation  of  the  Corporate
Transaction, this option shall terminate and cease to be outstanding,  except to
the extent assumed by the successor corporation or its parent company.

                           (b) If this  option is assumed in  connection  with a
Corporate  Transaction,  then  this  option  shall  be  appropriately  adjusted,
immediately after such Corporate  Transaction,  to apply to the number and class
of securities which would have been issuable to Optionee in consummation of such
Corporate  Transaction had the option been exercised  immediately  prior to such
Corporate  Transaction,  and appropriate  adjustments  shall also be made to the
Exercise Price,  provided the aggregate Exercise Price shall remain the same. To
the extent the actual  holders of the  Corporation's  outstanding  Common  Stock
receive  cash  consideration  for  their  Common  Stock in  consummation  of the
Corporate  Transaction,  the successor  corporation  may, in connection with the
assumption of this option, substitute one or more shares of its own common stock
with a fair market value equivalent to the cash  consideration paid per share of
Common Stock in such Corporate Transaction.

                  7. Change in Control/Hostile Take-Over.

                           (a) In the  event of a  Change  in  Control  effected
during Optionee's period of Board service, any Option Shares at the time subject
to this option but not otherwise  vested shall  automatically  vest so that this
option shall, immediately prior to the effective date of that Change in Control,
become exercisable for all of the Option Shares as fully vested shares of

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Common Stock and may be exercised  for any or all of those vested  shares.  This
option shall remain  exercisable  for such fully vested  Option Shares until the
earliest  to  occur  of (i) the  specified  Expiration  Date,  (ii)  the  sooner
termination  of this  option in  accordance  with  Paragraph 5 or 6 or (iii) the
surrender of this option under Paragraph 7(b).

                           (b)  Optionee  shall  have  an  unconditional  right,
exercisable at any time during the thirty (30)-day period immediately  following
the  consummation  of a  Hostile  Take-Over,  to  surrender  this  option to the
Corporation  in exchange  for a cash  distribution  from the  Corporation  in an
amount equal to the excess of (i) the  Take-Over  Price of the Option  Shares at
the time subject to the  surrendered  option (whether or not those Option Shares
are otherwise at the time vested) over (ii) the aggregate Exercise Price payable
for such shares.  This Paragraph 7(b) limited stock  appreciation right shall in
all events  terminate  upon the  expiration or sooner  termination of the option
term and may not be assigned or  transferred  by Optionee,  except to the extent
the option is transferred in accordance with the provisions of this Agreement.

                           (c) To exercise  the  Paragraph  7(b)  limited  stock
appreciation  right,  Optionee  must,  during  the  applicable  thirty  (30)-day
exercise  period,  provide the  Corporation  with  written  notice of the option
surrender  in which there is specified  the number of Option  Shares as to which
the option is being  surrendered.  Such notice must be accompanied by the return
of Optionee's  copy of this Agreement,  together with any written  amendments to
such Agreement.  The cash distribution shall be paid to Optionee within five (5)
business days  following  such delivery date. The exercise of such limited stock
appreciation  right in  accordance  with the terms of this  Paragraph 7 has been
pre-approved  pursuant to the express  provisions of the Automatic  Option Grant
Program,  and neither the approval of the Plan  Administrator nor the consent of
the Board shall be required at the time of the actual option  surrender and cash
distribution.  Upon  receipt  of the cash  distribution,  this  option  shall be
cancelled with respect to the shares subject to the  surrendered  option (or the
surrendered  portion),  and  Optionee  shall cease to have any further  right to
acquire those Option  Shares under this  Agreement.  The option shall,  however,
remain  outstanding  for the balance of the Option Shares (if any) in accordance
with the terms and  provisions  of this  Agreement,  and the  Corporation  shall
accordingly  issue a replacement  stock option agreement  (substantially  in the
same form as this Agreement) for those remaining Option Shares.

                  8.  Adjustment in Option Shares.  Should any change be made to
the Common Stock by reason of any stock split, stock dividend, recapitalization,
combination  of  shares,  exchange  of  shares  or other  change  affecting  the
outstanding  Common  Stock  as a class  without  the  Corporation's  receipt  of
consideration,  appropriate  adjustments  shall be made to (i) the total  number
and/or class of securities subject to this option and (ii) the Exercise Price in
order to reflect such change and thereby  preclude a dilution or  enlargement of
benefits hereunder.

                  9.  Stockholder  Rights.  The holder of this option  shall not
have any stockholder  rights with respect to the Option Shares until such person
shall have exercised the option,  paid the Exercise Price and become a holder of
record of the purchased shares.

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                  10. Manner of Exercising Option.

                           (a) In order to exercise  this option with respect to
all or any part of the  Option  Shares  for  which  this  option  is at the time
exercisable,  Optionee  (or any other person or persons  exercising  the option)
must take the following actions:

                               (i) To the  extent the  option is  exercised  for
         vested Option Shares,  execute and deliver to the  Corporation a Notice
         of Exercise for the Option Shares for which the option is exercised. To
         the extent this option is exercised for unvested Option Shares, execute
         and deliver to the Corporation a Purchase  Agreement for those unvested
         Option Shares.

                               (ii) Pay the  aggregate  Exercise  Price  for the
         purchased shares in one or more of the following forms:

                                    (A)  cash  or  check  made  payable  to  the
                  Corporation,

                                    (B) shares of Common  Stock held by Optionee
                  (or any other person or persons exercising the option) for the
                  requisite   period   necessary   to  avoid  a  charge  to  the
                  Corporation's  earnings for financial  reporting  purposes and
                  valued at Fair Market Value on the Exercise Date, or

                                    (C) to the extent  the  option is  exercised
                  for  vested  Option   Shares,   through  a  special  sale  and
                  remittance  procedure pursuant to which Optionee (or any other
                  person or persons  exercising  the option) shall  concurrently
                  provide     irrevocable      instructions     (I)     to     a
                  Corporation-designated  brokerage firm to effect the immediate
                  sale of the purchased shares and remit to the Corporation, out
                  of  the  sale  proceeds  available  on  the  settlement  date,
                  sufficient funds to cover the aggregate Exercise Price payable
                  for the purchased  shares plus all applicable  Federal,  state
                  and local income and employment  taxes required to be withheld
                  by the  Corporation by reason of such exercise and (II) to the
                  Corporation  to deliver  the  certificates  for the  purchased
                  shares  directly to such  brokerage  firm in order to complete
                  the sale.

                               (iii)  Furnish  to  the  Corporation  appropriate
         documentation  that the  person or  persons  exercising  the option (if
         other than Optionee) have the right to exercise this option.

                           (b)  Except  to the  extent  the sale and  remittance
procedure is utilized in  connection  with the option  exercise,  payment of the
Exercise Price must accompany the Notice of Exercise (or the Purchase Agreement)
delivered to the Corporation in connection with the option exercise.

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                           (c) As soon after the Exercise Date as practical, the
Corporation  shall  issue to or on behalf of  Optionee  (or any other  person or
persons  exercising this option) a certificate for the purchased  Option Shares,
with the  appropriate  legends  affixed  thereto.  To the extent any such Option
Shares are unvested,  the certificates for those Option Shares shall be endorsed
with an appropriate  legend evidencing the  Corporation's  repurchase rights and
may be held in escrow with the Corporation until such shares vest.

                           (d) In no event may this option be exercised  for any
fractional shares.

                  11. No Impairment of Rights.  This Agreement  shall not in any
way affect the right of the  Corporation  to adjust,  reclassify,  reorganize or
otherwise  make  changes  in its  capital  or  business  structure  or to merge,
consolidate,  dissolve,  liquidate  or sell or  transfer  all or any part of its
business  or  assets.  In  addition,  this  Agreement  shall  not in any  way be
construed or interpreted so as to affect adversely or otherwise impair the right
of the Corporation or the  stockholders to remove Optionee from the Board at any
time in accordance with the provisions of applicable law.

                  12. Compliance with Laws and Regulations.

                           (a) The  exercise of this option and the  issuance of
the Option  Shares  upon such  exercise  shall be subject to  compliance  by the
Corporation  and  Optionee  with all  applicable  requirements  of law  relating
thereto and with all applicable regulations of any stock exchange (or the Nasdaq
National  Market,  if  applicable)  on which the Common  Stock may be listed for
trading at the time of such exercise and issuance.

                           (b)  The  inability  of  the  Corporation  to  obtain
approval from any regulatory body having  authority deemed by the Corporation to
be  necessary to the lawful  issuance  and sale of any Common Stock  pursuant to
this option shall relieve the  Corporation  of any liability with respect to the
non-issuance  or sale of the Common  Stock as to which such  approval  shall not
have been  obtained.  The  Corporation,  however,  shall use its best efforts to
obtain all such approvals.

                  13.  Successors  and Assigns.  Except to the extent  otherwise
provided in Paragraph 3 or 6, the  provisions of this  Agreement  shall inure to
the benefit of, and be binding upon,  the  Corporation  and its  successors  and
assigns and Optionee,  Optionee's assigns, the legal representatives,  heirs and
legatees of Optionee's estate and any beneficiaries of this option designated by
Optionee.

                  14.  Notices.  Any notice required to be given or delivered to
the  Corporation  under  the terms of this  Agreement  shall be in  writing  and
addressed to the  Corporation  at its principal  corporate  offices.  Any notice
required to be given or delivered to Optionee  shall be in writing and addressed
to Optionee at the address  indicated  below  Optionee's  signature  line on the
Grant Notice.  All notices shall be deemed  effective upon personal  delivery or
upon deposit in the U.S.  mail,  postage  prepaid and properly  addressed to the
party to be notified.

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                  15.  Construction.  This  Agreement  and the option  evidenced
hereby are made and granted pursuant to the Plan and are in all respects limited
by and subject to the terms of the Plan.

                  16.  Governing  Law.  The   interpretation,   performance  and
enforcement  of this  Agreement  shall be  governed  by the laws of the State of
California without resort to that State's conflict-of-laws rules.

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                                    EXHIBIT I

                               NOTICE OF EXERCISE

         I hereby notify Sharper Image  Corporation (the  "Corporation")  that I
elect to purchase  _____________  shares of the Corporation's  Common Stock (the
"Purchased  Shares") at the option exercise price of $___________ per share (the
"Exercise  Price") pursuant to that certain option (the "Option")  granted to me
under  the  Corporation's  2000  Stock  Incentive  Plan  on   _________________,
________.

         Concurrently   with  the  delivery  of  this  Exercise  Notice  to  the
Corporation,  I shall hereby pay to the  Corporation  the Exercise Price for the
Purchased  Shares in accordance  with the  provisions  of my agreement  with the
Corporation  (or other  documents)  evidencing  the  Option  and  shall  deliver
whatever  additional  documents may be required by such agreement as a condition
for exercise.  Alternatively,  I may utilize the special  broker-dealer sale and
remittance procedure specified in my agreement to effect payment of the Exercise
Price for any  Purchased  Shares in which I am vested at the time of exercise of
the Option.

-------------------------, --------
Date

                                           -------------------------------------
                                           Optionee

                                           -------------------------------------

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


                                           -------------------------------------
Print name in exact manner
it is to appear on the
stock certificate:
                                           -------------------------------------
Address to which certificate
is to be sent, if different
from address above:
                                           -------------------------------------


                                           -------------------------------------

Social Security Number:
                                           -------------------------------------


                                           -------------------------------------

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                                    APPENDIX

         The following definitions shall be in effect under the Agreement:

         A. Agreement shall mean this Automatic Stock Option Agreement.

         B. Board shall mean the Corporation's Board of Directors.

         C. Change in Control shall mean a change in ownership or control of the
Corporation effected through either of the following transactions:

                  (i) the acquisition,  directly or indirectly, by any person or
         related group of persons  (other than the  Corporation or a person that
         directly or indirectly  controls,  is controlled by, or is under common
         control with,  the  Corporation)  of beneficial  ownership  (within the
         meaning of Rule 13d-3 of the 1934 Act) of  securities  possessing  more
         than fifty  percent  (50%) of the total  combined  voting  power of the
         Corporation's  outstanding  securities pursuant to a tender or exchange
         offer made directly to the Corporation's stockholders, or

                  (ii) a change in the composition of the Board over a period of
         thirty-six (36) consecutive  months or less such that a majority of the
         Board members ceases, by reason of one or more contested  elections for
         Board  membership,  to be comprised of individuals  who either (A) have
         been Board members  continuously  since the beginning of such period or
         (B) have been elected or nominated for election as Board members during
         such period by at least a majority of the Board  members  described  in
         clause (A) who were still in office at the time the Board approved such
         election or nomination.

         D. Common Stock shall mean shares of the Corporation's common stock.

         E. Code shall mean the Internal Revenue Code of 1986, as amended.

         F.   Corporate   Transaction   shall  mean  either  of  the   following
stockholder-approved transactions to which the Corporation is a party:

                  (i) a merger or consolidation  in which securities  possessing
         more than fifty percent (50%) of the total combined voting power of the
         Corporation's  outstanding  securities  are  transferred to a person or
         persons different from the persons holding those securities immediately
         prior to such transaction, or

                  (ii)  the  sale,  transfer  or  other  disposition  of  all or
         substantially all of the Corporation's  assets in complete  liquidation
         or dissolution of the Corporation.

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         G.  Corporation  shall  mean  Sharper  Image  Corporation,  a  Delaware
corporation,  and any successor  corporation to all or substantially  all of the
assets or voting stock of Sharper Image  Corporation  which shall by appropriate
action adopt the Plan.

         H.  Exercise  Date shall  mean the date on which the option  shall have
been exercised in accordance with Paragraph 10 of the Agreement.

         I. Exercise  Price shall mean the exercise price per share as specified
in the Grant Notice.

         J.  Expiration  Date shall mean the date on which the option expires as
specified in the Grant Notice.

         K. Fair Market  Value per share of Common  Stock on any  relevant  date
shall be determined in accordance with the following provisions:

                  (i) If the  Common  Stock is at the time  traded on the Nasdaq
         National  Market,  then  the Fair  Market  Value  shall be the  closing
         selling price per share of Common Stock on the date in question, as the
         price is reported by the National  Association of Securities Dealers on
         the Nasdaq National Market and published in The Wall Street Journal. If
         there is no closing  selling  price for the Common Stock on the date in
         question, then the Fair Market Value shall be the closing selling price
         on the last preceding date for which such quotation exists.

                  (ii) If the  Common  Stock is at the time  listed on any Stock
         Exchange, then the Fair Market Value shall be the closing selling price
         per share of Common Stock on the date in question on the Stock Exchange
         which serves as the primary market for the Common Stock,  as such price
         is officially  quoted in the  composite  tape of  transactions  on such
         exchange  and  published  in The Wall  Street  Journal.  If there is no
         closing  selling  price for the Common  Stock on the date in  question,
         then the Fair Market  Value shall be the closing  selling  price on the
         last preceding date for which such quotation exists.

         L. Grant  Date shall mean the date of grant of the option as  specified
in the Grant Notice.

         M.  Grant  Notice  shall mean the  Notice of Grant of  Automatic  Stock
Option accompanying the Agreement,  pursuant to which Optionee has been informed
of the basic terms of the option evidenced hereby.

         N. Hostile Takeover shall mean the acquisition, directly or indirectly,
by any  person or related  group of persons  (other  than the  Corporation  or a
person that  directly or  indirectly  controls,  is  controlled  by, or is under
common  control  with,  the  Corporation)  of beneficial  ownership  (within the
meaning of Rule 13d-3 of the 1934 Act) of securities  possessing more than fifty
percent  (50%)  of  the  total  combined  voting  power  of  the   Corporation's
outstanding

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securities  pursuant  to a  tender  or  exchange  offer  made  directly  to  the
Corporation's  stockholders which the Board does not recommend such stockholders
to accept.

         O. 1934 Act shall mean the Securities Exchange Act of 1934, as amended.

         P.  Non-Statutory  Option  shall mean an option not intended to satisfy
the requirements of Code Section 422.

         Q. Notice of Exercise  shall mean the notice of exercise in the form of
Exhibit I.

         R.  Option  Shares  shall  mean the  number of  shares of Common  Stock
subject to the option.

         S.  Optionee  shall  mean the  person to whom the  option is granted as
specified in the Grant Notice.

         T. Permanent Disability shall mean the inability of Optionee to perform
his or her usual  duties  as a member  of the  Board by reason of any  medically
determinable  physical or mental impairment which is expected to result in death
or has lasted or can be expected to last for a continuous  period of twelve (12)
months or more.

         U. Plan shall mean the Corporation's 2000 Stock Incentive Plan.

         V. Purchase  Agreement shall mean the stock purchase agreement (in form
and substance  satisfactory to the Corporation) which grants the Corporation the
right to repurchase,  at the Exercise Price,  any and all unvested Option Shares
held by Optionee at the time of Optionee's  cessation of Board service and which
precludes the sale, transfer or other disposition of any purchased Option Shares
while those shares are unvested and subject to such repurchase right.

         W. Stock  Exchange  shall mean the American  Stock  Exchange or the New
York Stock Exchange.

         X. Take-Over  Price shall mean the greater of (i) the Fair Market Value
per  share  of  Common  Stock  on the  date the  option  is  surrendered  to the
Corporation in connection with a Hostile  Take-Over or (ii) the highest reported
price per share of Common  Stock paid by the tender  offeror  in  effecting  the
Hostile Take-Over.

         Y. Vesting  Schedule shall mean the vesting  schedule  specified in the
Grant  Notice,  pursuant  to which the  Option  Shares  will vest in one or more
installments   over  the  Optionee's   period  of  Board  service,   subject  to
acceleration in accordance with the provisions of the Agreement.

                                      A-3