Document:

EXHIBIT 10.2

                     TWELVE MONTH CONVERTIBLE NOTE AMENDMENT

This  Amendment  (the  "Agreement"),  is effective as of this 14th day of March,
2007 and amends the Twelve Month Convertible Note,  ("NOTE"),  between Robert C.
Brehm and  Intercontinental  Assets Corporation  ("Holder" or "Holders") and and
MotorSports  Emporium,  Inc.,  ("Issuer"),  with  offices  at  P.O.  Box  26946,
Scottsdale, AZ 85255.

                                   WITNESSETH

WHEREAS,  the Issuer and Holders  desire to change the terms of the note for the
benefit of both parties and to facilitate the Stock Sale and Purchase Agreement,
("Purchase Agreement"), between David Keaveney and Kenneth Yeung.

NOW, THEREFORE,  in consideration of the mutual covenants hereinafter stated, it
is agreed as follows:

All amendments to the original NOTE as described  below are contingent  upon the
execution and  completion of the Purchase  Agreement  otherwise  this  Agreement
shall be null and void.

1. NOTE EXTENSION.

The  Extensions  at Option of Issuer  section of the note is no longer valid and
Issuer  shall have no option to extend  the note other than  agreed to herein or
amended in writing between the parties.

2. NOTE PAYMENT.

Payments on the Note after March 31, 2007 shall be deferred  until June 1, 2007,
however  interest  shall  accrue per the terms of the note and the Note  payment
shall remain at $5,000 or more per month beginning on June 1, 2007.

3. NOTE DISCOUNT FOR EARLY PAYMENT IN FULL.

Issuer shall earn a discount off the accrued  principal  and interest due on the
note as follows:

     a.   If the total  accrued  interest  and  principal is paid in full before
          October 1, 2007 then a total  discount of $50,000  shall be applied to
          the final  payment.  The discount will be reduced by the amount of the
          discount applied to any portion of the note sold by Robert C. Brehm to
          a third party.  In  particular if Brehm sells the note with a discount
          of  $18,960.63  then the final  remaining  discount  upon  payment  by
          October 1, 2007 shall be $31,039.37.

     b.   If the total  accrued  interest and  principal is paid in full between
          October 2, 2007 and  January 1, 2008 then a total  discount of $25,000
          shall be applied to the final payment. The discount will be reduced by
          the amount of the discount  applied to any portion of the note sold by
          Robert C. Brehm to a third  party.  In  particular  if Brehm sells the
          note with a discount of $18,960.63 then the final  remaining  discount
          upon payment by January 1, 2008 shall be $6,039.37.

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4. NOTE TERM

The term of the note shall be extended from August 30, 2007 to May 30, 2008 when
all accrued interest and principal shall be due and payable.

5. CONVERSION OF NOTE INTO COMMON SHARES

The provision of conversion only upon default is modified to allow conversion at
any time after notice is given to ISSUER by Holder(s). The conversion rate shall
be changed  from  eighty  percent  (80%) to  seventy-five  percent  (75%) with a
further  constraint that the converted  number of shares issued to a Holder will
always be such that the number of shares  beneficially owned by a Holder will be
less than 4.9% of the outstanding common shares of the corporation.

6. EVENTS OF DEFAULT

The following paragraph shall be deleted:

In the  event of  default,  ISSUER  agrees  to issue to  HOLDERS,  at no cost to
HOLDERS,  a number of shares of Series B Preferred Stock such that HOLDERS shall
possess  fifty one per cent (51%) or more of the  voting  rights of the Series B
Preferred Stock and ISSUER shall continue to owe the unpaid portion of this Note
at the time of default in addition to other remedies due to HOLDERS.

The following  paragraph  shall be added to the Events of Default section of the
Note:

     a. In the event of default,  ISSUER agrees to issue to HOLDERS,  at no cost
to  HOLDERS,  a number of shares of Series B Preferred  Stock such that  HOLDERS
shall possess fifty one per cent (51%) or more of the  authorized  shares of the
Series B Preferred  Stock and ISSUER shall continue to owe the unpaid portion of
this Note at the time of default in addition to other  remedies  due to HOLDERS.
ISSUE also  agrees not to change  the  Rights,  Preferences  and  Privileges  or
authorized  shares of the Series B Preferred  Stock in effect on the date of the
Note  while any  balance  on this note is due to  Holder(s).  Any  change  shall
constitute a default under this Note.

7. MISCELLANEOUS.

MODIFICATION:  This Amendment sets forth the entire understanding of the Parties
with respect to the subject matter hereof. This Amendment may be amended only in
writing signed by both Parties.

NOTICES:  Any notice  required or  permitted to be given  hereunder  shall be in
writing and shall be mailed or  otherwise  delivered  in person or by  facsimile
transmission  at the  address  of such  Party set forth  above or to such  other
address or  facsimile  telephone  number as the Party  shall have  furnished  in
writing to the other Party.

WAIVER:  Any  waiver  by  either  Party of a  breach  of any  provision  of this
Agreement  shall  not  operate  as or be  construed  to be a waiver of any other
breach  of that  provision  or of any  breach  of any  other  provision  of this
Agreement. The failure of a Party to insist upon strict adherence to any term of

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this  Agreement  on one or more  occasions  will not be  considered  a waiver or
deprive that Party of the right thereafter to insist upon adherence to that term
of any other term of this Agreement.

SEVERABILITY:  If any  provision  of this  Agreement  is  invalid,  illegal,  or
unenforceable,  the balance of this Agreement shall remain in effect, and if any
provision is inapplicable to any person or circumstance,  it shall  nevertheless
remain applicable to all other persons and circumstances.

DISAGREEMENTS:  Any dispute or other  disagreement  arising  from or out of this
Agreement  shall be  submitted  to  arbitration  under the rules of the American
Arbitration  Association and the decision f the arbiter(s)  shall be enforceable
in any court having  jurisdiction  thereof.  Arbitration shall occur only in San
Diego County, CA. The interpretation and the enforcement of this Agreement shall
be governed by California Law as applied to residents of the State of California
relating to contracts executed in and to be performed solely within the State of
California.  In the event any dispute is arbitrated,  the  prevailing  Party (as
determined  by the  arbiter(s))  shall  be  entitled  to  recover  that  Party's
reasonable attorney's fees incurred (as determined by the arbiter(s)).

IN WITNESS WHEREOF,  this Consulting  Agreement has been executed by the Parties
as of the date first above written.

For and on behalf of:

Robert Brehm                                MotorSports Emporium, Inc.

/s/ Robert Brehm                            /s/ David Keaveney
-----------------------------------         ------------------------------------
                                            David Keaveney, President and CEO

Intercontinental Assets Corporation

/s/ Robert C. Brehm
-----------------------------------
Robert C. Brehm, President

                                       3EXHIBIT 3

EXHIBIT 10.1

Employment Agreement

March 25, 2007

Steven Lightman

 

Dear Mr. Lightman:

The following sets forth the agreement between Sharper Image Corporation (the "Company") and you (the "Executive") regarding your employment as President and Chief Executive Officer of the Company, which is expected to commence on April 9, 2007 (the "Start Date").

	Employment; Location.

	Employment, Duties. Executive will be employed as President and Chief Executive Officer of the Company, reporting to the Board of Directors (the "Board") or the Chairman of the Board, and will perform such duties consistent with such position as may be assigned to the Executive by the Chairman or the Board. The Executive hereby accepts such employment and agrees to render the services described above. During the Term, the Executive agrees to serve the Company faithfully and to the best of the Executive's ability, to devote the Executive's entire business time to such employment, and to use the Executive's best efforts, skill and ability to promote the Company's interests. The Company shall use reasonable efforts to cause Executive to be elected to the Board upon his commencement of duties hereunder. 

	Location. The duties to be performed by the Executive hereunder shall be performed primarily at the office of the Company in San Francisco, California, subject to reasonable travel requirements on behalf of the Company.

	Term Of Agreement. The term of the Executive's employment under this Agreement (the "Term") shall commence on the Start Date and shall end on April 8, 2010, subject to earlier termination as provided herein.

	Compensation; Benefits.

	Salary. The Company agrees to pay the Executive during the Term a base salary at the annual rate of $550,000 (the "Base Salary"). The Base Salary shall be payable in accordance with the Company's normal payroll practices. The Executive shall be provided with an annual merit review.

	Bonus. The Executive will be eligible to participate in the Company's incentive bonus plan, as from time to time in effect, or its successor plan(s) (the "Bonus Plan"), with a target bonus of 100% of Base Salary for achievement of performance objectives determined in its sole discretion by the Board of Directors (or its committee) and subject to the terms of the Bonus Plan.  Any bonus payable for the Company's fiscal year ending January 31, 2008 (the "2007 Fiscal Year") under the terms of the Bonus Plan will be pro-rated based on the Executive's actual start date with the Company. For the 2007 Fiscal Year, the Executive shall be guaranteed a minimum bonus of 50% of the Base Salary paid during the 2007 Fiscal Year. 

	Business Expenses. The Company shall pay or reimburse the Executive for all reasonable expenses actually incurred or paid by the Executive during the Term in the performance of the Executive's services under this Agreement, in accordance with the Company's policies and procedures in effect from time to time. Notwithstanding the Company's policies, the Executive shall be entitled to first class travel and lodging. 

	Vacation. In accordance with the Company's current vacation policy, the Executive will accrue 4 weeks vacation each twelve months which shall accrue and carry over to subsequent fiscal years up to maximum of 8 weeks, subject to the Company's policy in place from time to time. 

	Fringe Benefits. The Executive will be eligible to participate in various benefit plans and programs sponsored by the Company for its senior officers in effect from time to time, including medical benefits, and the Company's 401(k) plan, other than the Company's profit sharing plan, in each case subject to the terms and conditions of such plans.  The Executive will be eligible to receive through the Company's current policies an executive life insurance benefit of $500,000.  In addition, during the Term, the Company will pay for a supplemental amount of $500,000 of life insurance, subject to evidence of insurability acceptable to carriers.

	Relocation. The Company will provide the Executive a relocation package for the move of the Executive's household goods to the San Francisco area substantially as set forth on Schedule I.  The Executive agrees, to the extent permitted by law, to repay any relocation amounts paid by the Company in the event his employment is terminated by the Company with Cause (as defined below) or the Executive resigns for any reason, in either case prior to the one-year anniversary of the Executive's move. The relocation package will be available for a maximum of four months from the Executive's first date of employment.  Nothing in the foregoing will require the Company to take any action that would be a violation of applicable law, including but not limited to Sarbanes Oxley.

	Stock Options. The Company shall grant to the Executive 450,000 non-qualified stock options (the "Options") to purchase shares of common stock, par value $.01 per share (the "Common Stock") in accordance with the terms of the Company's 2000 Stock Incentive Plan (as from time to time in effect, the "2000 Plan"). The Options will have a maximum term of 10 years (subject to earlier termination if the Executive's employment terminates), and vest and become exercisable 25% on each of the first four anniversaries of the date of grant, subject to earlier vesting and exerciseablity in the event of a Corporate Transaction (as defined in the 2000 Plan) to the extent provided for in the 2000 Plan. The Options will have an exercise price equal to the fair market value (as defined in the 2000 Plan) of the Common Stock on the date of grant.  The Company expects that the approval of the grant by the Board or its committee will occur after the release of the Company's financial information for the fiscal year ended January 31, 2007.

	Termination.

	Termination by the Company for Cause; Resignation. The Company may by written notice to the Executive terminate the Executive's employment for "Cause" (as defined in the Company's Executive Severance Policy as in effect from time to time (the "Severance Policy")), and in the event of such termination the Term shall terminate and, upon such termination, the Executive shall be entitled to receive no further amounts or benefits hereunder, except any as shall have been earned to the date of such termination and owed to the Executive. In the event the Executive voluntarily terminates employment (other than pursuant to Section 4(b) for Good Reason (as defined below)), the Executive's employment and the Term shall terminate and the Executive shall be entitled to receive no further amounts or benefits hereunder, except any as shall have been earned by and owed to the Executive as of the date of such termination. 

	Termination by the Company Without Cause; Resignation for Good Reason. In the event prior to the end of the Term the Company terminates Executive's employment without Cause, or Executive resigns for Good Reason, and subject to Executive signing and letting become effective a general release of claims in a form acceptable to the Company and complying with Section 6 hereof and the Confidentiality Agreement, then notwithstanding the length of the remainder of the Term as of the date of such termination, the Executive shall only be entitled to (i) the severance payment of 24 months of Base Salary and benefits in accordance with the Severance Policy for a Severance Period (as defined in the Severance Policy) of 24 months, notwithstanding the terms of the Severance Policy providing for a maximum Severance Period of 9 months, and (ii) a pro rata portion (calculated based on the number of days elapsed during the fiscal year through the date of termination divided by the total number of days in the fiscal year) of the incentive bonus for the fiscal year in which the termination occurred based on actual performance for the entire fiscal year, as determined in accordance with the terms of the Bonus Plan, payable no earlier than the time the bonuses are paid under the Bonus Plan (collectively, the "Severance Benefits"); provided that the Severance Benefits shall be payable in equal installments commencing on the first payroll date of the Company occurring at least six months following termination of Executive's employment, and shall continue thereafter over the subsequent 24-month period on each payroll date of the Company in accordance with the Company's payroll practices.  In the event of any inconsistency between this Agreement and the Severance Policy, this Agreement will govern and will be interpreted in a manner consistent with the intent of the parties to comply with Section 409A of the Internal Revenue Code of 1986, as amended. 

	Good Reason. "Good Reason" shall mean Executive's written resignation within 60 days following (A) a material and sustained reduction in the scope of his duties and responsibilities, (B) a reduction in his Base Salary (other than if substantially all of the other executive officers of the Company are subject to a substantially similar reduction), or (C) a relocation of his principal place of employment by more than 50 miles from San Francisco; provided that in any case, Executive has provided the Board of Directors with 30 days prior written notice of his intent to resign for Good Reason, containing details regarding the grounds for claiming Good Reason, and allowed the Board of Directors to take action to remove or correct the Good Reason within 30 days.

	Indemnification.  The Company will indemnify and advance expenses to the Executive, to the maximum extent permitted by applicable law, against all costs, charges and expenses incurred or sustained by the Executive in connection with any action, suit or proceeding to which the Executive may be made a party by reason of the Executive being an officer, director or employee of the Company or of any subsidiary or affiliate of the Company.

	Standard Agreements.  As a condition of the Executive's employment the Executive will be required to comply with the Company's policies each as in effect from time to time and to sign the Company's confidentiality and invention ownership agreement (the "Confidentiality Agreement") which must be signed and returned to the Company. Without limiting the foregoing, Employee agrees that during the Term and for a period of 12 months thereafter, Employee shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company's employees to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage, take away or hire employees of the Company, either for Employee personally or any other person or entity.

	Attorneys Fees.  The Company will pay the Executive's reasonable attorneys fees incurred in connection with the negotiation of this Agreement, up to a maximum of $25,000. 

	At-Will.  Notwithstanding anything in this Agreement (including without limitation the length of the Term set forth in Section 2 hereof), the Executive's employment will be at-will, terminable for any reason by either the Executive or the Company, without fixed term or notice, at any time.

	Assignability; Binding Nature. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, heirs (in the case of the Executive) and assigns.  Rights or obligations of the Company under this Agreement may be assigned or transferred by the Company pursuant to a merger or consolidation in which the Company is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of the Company, provided that the assignee or transferee is the successor to all or substantially all of the assets of the Company and such assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law.  No rights or obligations of the Executive under this Agreement may be assigned or transferred by the Executive other than his rights to compensation and benefits, which may be transferred only by will or operation of law.

	Amendment or Waiver. No provision in this Agreement may be amended unless such amendment is agreed to in writing and signed by the Executive and an authorized officer of the Company.  No waiver by either Party of any breach by the other Party of any condition or provision contained in this Agreement to be performed by such other Party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent time.  Any waiver must be in writing and signed by the Executive or an authorized officer of the Company, as the case may be.

	Severability. In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law so as to achieve the purposes of this Agreement.

	Survivorship.  Except as otherwise expressly set forth in this Agreement, the respective rights and obligations of the parties hereunder shall survive any termination of the Executive's employment in accordance with their terms.  

	Executive Representation. The Executive hereby represents and warrants that the Executive is not subject to any other agreement, including without limitation any agreement not to compete or confidentiality agreement, which would be violated by the Executive's performance of services hereunder. 

	Tax Withholding.  Any amounts payable hereunder shall be subject to applicable withholding or deductions as required by applicable law and regulations.

	Governing Law.  This Agreement (and all claims arising under this Agreement, including tort claims) shall be governed in accordance with the laws of Delaware without reference to principles of conflict of laws.

	Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be deemed given upon receipt when (a) delivered personally, (b) delivered by certified or registered mail, postage prepaid, return receipt requested or (c) delivered by overnight courier for overnight delivery (provided that a written acknowledgment of receipt is obtained by the overnight courier) to the party concerned at the address indicated below or to such changed address as such party may subsequently give such notice of:

If to the Company:Sharper Image Corporation

350 The Embarcadero, 6th Floor

San Francisco, California 94105

Attention:  Chairman

Facsimile: (415) 445-1588

If to the Executive, to the address or facsimile number provided by the Executive herewith.

	Headings. The headings of the sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement.

	Counterparts/Facsimile Signatures.  This Agreement may be executed in several counterparts.  The parties hereto may deliver this Agreement by facsimile and each party shall be permitted to rely upon the signatures so transmitted to the same extent and effect as if they were original signatures.

 

	Entire Agreement.  This Agreement and the documents referenced in this Agreement constitute the full and entire understanding and agreement among the parties hereto with regard to the subject matter hereof.  No party to this Agreement shall be bound by any representations, warranties, covenants and agreements not specifically set forth herein and therein.

Sincerely,

SHARPER IMAGE CORPORATION

 

By:   /s/ Jerry W. Levin

Jerry W. Levin

Interim Chief Executive Officer and Chairman

 

Accepted and agreed as of the 

date first written above:

 

  /s/ Steven Lightman 

Steven Lightman

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