SHRP Sharper Image Corp (MM)

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 2 OF 15 PAGES
------------------------------ ---------------------

--------------------------------------------------------------------------------
 1 NAME OF REPORTING PERSON
 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 CLINTON GROUP, INC.
--------------------------------------------------------------------------------
 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
 (b) [ ]

--------------------------------------------------------------------------------
 3 SEC USE ONLY

--------------------------------------------------------------------------------
 4 SOURCE OF FUNDS*

 AF
--------------------------------------------------------------------------------
 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
 TO ITEMS 2(d) or 2(e) [ ]

--------------------------------------------------------------------------------
 6 CITIZENSHIP OR PLACE OF ORGANIZATION

 DELAWARE
--------------------------------------------------------------------------------
 7 SOLE VOTING POWER

 -0-
 ----------------------------------------------------------
 NUMBER OF 8 SHARED VOTING POWER
 SHARES
BENEFICIALLY 460,609
 OWNED BY ----------------------------------------------------------
 EACH 9 SOLE DISPOSITIVE POWER
 REPORTING
PERSON WITH -0-
 ----------------------------------------------------------
 10 SHARED DISPOSITIVE POWER

 460,609
--------------------------------------------------------------------------------
 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

 460,609
--------------------------------------------------------------------------------
 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
 CERTAIN SHARES*
 [ ]
--------------------------------------------------------------------------------
 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 3.0%
--------------------------------------------------------------------------------
 14 TYPE OF REPORTING PERSON*

 IA; CO
--------------------------------------------------------------------------------
 * SEE INSTRUCTIONS

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 3 OF 15 PAGES
------------------------------ ---------------------

--------------------------------------------------------------------------------
 1 NAME OF REPORTING PERSON
 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 CLINTON SPECIAL OPPORTUNITIES MASTER FUND, LTD.
--------------------------------------------------------------------------------
 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
 (b) [ ]

--------------------------------------------------------------------------------
 3 SEC USE ONLY

--------------------------------------------------------------------------------
 4 SOURCE OF FUNDS*

 WC
--------------------------------------------------------------------------------
 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
 TO ITEMS 2(d) or 2(e) [ ]

--------------------------------------------------------------------------------
 6 CITIZENSHIP OR PLACE OF ORGANIZATION

 CAYMAN ISLANDS
--------------------------------------------------------------------------------
 7 SOLE VOTING POWER

 -0-
 ----------------------------------------------------------
 NUMBER OF 8 SHARED VOTING POWER
 SHARES
BENEFICIALLY 225,942
 OWNED BY ----------------------------------------------------------
 EACH 9 SOLE DISPOSITIVE POWER
 REPORTING
PERSON WITH -0-
 ----------------------------------------------------------
 10 SHARED DISPOSITIVE POWER

 225,942
--------------------------------------------------------------------------------
 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

 225,942
--------------------------------------------------------------------------------
 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
 CERTAIN SHARES*
 [ ]
--------------------------------------------------------------------------------
 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 1.5%
--------------------------------------------------------------------------------
 14 TYPE OF REPORTING PERSON*

 CO
--------------------------------------------------------------------------------
 * SEE INSTRUCTIONS

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 4 OF 15 PAGES
------------------------------ ---------------------

--------------------------------------------------------------------------------
 1 NAME OF REPORTING PERSON
 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 CLINTON LEXINGTON MASTER FUND, L.P.
--------------------------------------------------------------------------------
 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
 (b) [ ]

--------------------------------------------------------------------------------
 3 SEC USE ONLY

--------------------------------------------------------------------------------
 4 SOURCE OF FUNDS*

 AF
--------------------------------------------------------------------------------
 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
 TO ITEMS 2(d) or 2(e) [ ]

--------------------------------------------------------------------------------
 6 CITIZENSHIP OR PLACE OF ORGANIZATION

 UNITED STATES
--------------------------------------------------------------------------------
 7 SOLE VOTING POWER

 -0-
 ----------------------------------------------------------
 NUMBER OF 8 SHARED VOTING POWER
 SHARES
BENEFICIALLY 234,667
 OWNED BY ----------------------------------------------------------
 EACH 9 SOLE DISPOSITIVE POWER
 REPORTING
PERSON WITH -0-
 ----------------------------------------------------------
 10 SHARED DISPOSITIVE POWER

 234,667
--------------------------------------------------------------------------------
 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

 234,667
--------------------------------------------------------------------------------
 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
 CERTAIN SHARES*
 [ ]
--------------------------------------------------------------------------------
 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 1.5%
--------------------------------------------------------------------------------
 14 TYPE OF REPORTING PERSON*

 PN
--------------------------------------------------------------------------------
 * SEE INSTRUCTIONS

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 5 OF 15 PAGES
------------------------------ ---------------------

--------------------------------------------------------------------------------
 1 NAME OF REPORTING PERSON
 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 GEORGE E. HALL
--------------------------------------------------------------------------------
 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
 (b) [ ]

--------------------------------------------------------------------------------
 3 SEC USE ONLY

--------------------------------------------------------------------------------
 4 SOURCE OF FUNDS*

 AF,PF
--------------------------------------------------------------------------------
 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
 TO ITEMS 2(d) or 2(e) [ ]

--------------------------------------------------------------------------------
 6 CITIZENSHIP OR PLACE OF ORGANIZATION

 UNITED STATES
--------------------------------------------------------------------------------
 7 SOLE VOTING POWER

 38,000
 ----------------------------------------------------------
 NUMBER OF 8 SHARED VOTING POWER
 SHARES
BENEFICIALLY 460,609
 OWNED BY ----------------------------------------------------------
 EACH 9 SOLE DISPOSITIVE POWER
 REPORTING
PERSON WITH 38,000
 ----------------------------------------------------------
 10 SHARED DISPOSITIVE POWER

 460,609
--------------------------------------------------------------------------------
 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

 498,609
--------------------------------------------------------------------------------
 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
 CERTAIN SHARES*
 [ ]
--------------------------------------------------------------------------------
 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 3.3%
--------------------------------------------------------------------------------
 14 TYPE OF REPORTING PERSON*

 IN
--------------------------------------------------------------------------------
 * SEE INSTRUCTIONS

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 6 OF 15 PAGES
------------------------------ ---------------------

--------------------------------------------------------------------------------
 1 NAME OF REPORTING PERSON
 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 Jerry W. Levin
--------------------------------------------------------------------------------
 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
 (b) [ ]

--------------------------------------------------------------------------------
 3 SEC USE ONLY

--------------------------------------------------------------------------------
 4 SOURCE OF FUNDS*

 PF
--------------------------------------------------------------------------------
 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
 TO ITEMS 2(d) or 2(e) [ ]

--------------------------------------------------------------------------------
 6 CITIZENSHIP OR PLACE OF ORGANIZATION

 UNITED STATES
--------------------------------------------------------------------------------
 7 SOLE VOTING POWER

 -0-
 ----------------------------------------------------------
 NUMBER OF 8 SHARED VOTING POWER
 SHARES
BENEFICIALLY 430,129
 OWNED BY ----------------------------------------------------------
 EACH 9 SOLE DISPOSITIVE POWER
 REPORTING
PERSON WITH -0-
 ----------------------------------------------------------
 10 SHARED DISPOSITIVE POWER

 430,129
--------------------------------------------------------------------------------
 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

 430,129
--------------------------------------------------------------------------------
 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
 CERTAIN SHARES*
 [ ]
--------------------------------------------------------------------------------
 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 2.8%
--------------------------------------------------------------------------------
 14 TYPE OF REPORTING PERSON*

 IN
--------------------------------------------------------------------------------
 * SEE INSTRUCTIONS

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 7 OF 15 PAGES
------------------------------ ---------------------

--------------------------------------------------------------------------------
 1 NAME OF REPORTING PERSON
 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 STEVEN R. ISKO
--------------------------------------------------------------------------------
 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
 (b) [ ]

--------------------------------------------------------------------------------
 3 SEC USE ONLY

--------------------------------------------------------------------------------
 4 SOURCE OF FUNDS*

 PF
--------------------------------------------------------------------------------
 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
 TO ITEMS 2(d) or 2(e) [ ]

--------------------------------------------------------------------------------
 6 CITIZENSHIP OR PLACE OF ORGANIZATION

 UNITED STATES
--------------------------------------------------------------------------------
 7 SOLE VOTING POWER

 -0-
 ----------------------------------------------------------
 NUMBER OF 8 SHARED VOTING POWER
 SHARES
BENEFICIALLY 81,766
 OWNED BY ----------------------------------------------------------
 EACH 9 SOLE DISPOSITIVE POWER
 REPORTING
PERSON WITH -0-
 ----------------------------------------------------------
 10 SHARED DISPOSITIVE POWER

 81,766
--------------------------------------------------------------------------------
 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

 81,766
--------------------------------------------------------------------------------
 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
 CERTAIN SHARES*
 [ ]
--------------------------------------------------------------------------------
 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 0.5%
--------------------------------------------------------------------------------
 14 TYPE OF REPORTING PERSON*

 IN
--------------------------------------------------------------------------------
 * SEE INSTRUCTIONS

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 8 OF 15 PAGES
------------------------------ ---------------------

--------------------------------------------------------------------------------
 1 NAME OF REPORTING PERSON
 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 MICHAEL A. POPSON
--------------------------------------------------------------------------------
 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
 (b) [ ]

--------------------------------------------------------------------------------
 3 SEC USE ONLY

--------------------------------------------------------------------------------
 4 SOURCE OF FUNDS*

 PF
--------------------------------------------------------------------------------
 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
 TO ITEMS 2(d) or 2(e) [ ]

--------------------------------------------------------------------------------
 6 CITIZENSHIP OR PLACE OF ORGANIZATION

 UNITED STATES
--------------------------------------------------------------------------------
 7 SOLE VOTING POWER

 -0-
 ----------------------------------------------------------
 NUMBER OF 8 SHARED VOTING POWER
 SHARES
BENEFICIALLY 81,766
 OWNED BY ----------------------------------------------------------
 EACH 9 SOLE DISPOSITIVE POWER
 REPORTING
PERSON WITH -0-
 ----------------------------------------------------------
 10 SHARED DISPOSITIVE POWER

 81,766
--------------------------------------------------------------------------------
 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

 81,766
--------------------------------------------------------------------------------
 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
 CERTAIN SHARES*
 [ ]
--------------------------------------------------------------------------------
 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 0.5%
--------------------------------------------------------------------------------
 14 TYPE OF REPORTING PERSON*

 IN
--------------------------------------------------------------------------------
 * SEE INSTRUCTIONS

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 9 OF 15 PAGES
------------------------------ ---------------------

ITEM 1. SECURITY AND ISSUER.

 This statement relates to the shares of Common Stock, $0.01 par value
per share (the "Shares"), of Sharper Image Corporation, a Delaware corporation
(the "Issuer"). The principal executive office of the Issuer is located at 350
The Embarcadero, 6th Floor, San Francisco, California, 94105.

ITEM 2. IDENTITY AND BACKGROUND.

 (a) This statement is filed by Clinton Group, Inc., a Delaware
corporation ("CGI"), Clinton Special Opportunities Master Fund, Ltd., a Cayman
Islands company ("CSO"), Clinton Lexington Master Fund, L.P., a Cayman Islands
exempted limited partnership ("CLEX"), Jerry W. Levin, Steven Isko, Michael
Popson and George Hall (collectively, the "Reporting Persons").

 (b) The principal business address of CGI, Jerry W. Levin, Steven Isko,
Michael Popson and George Hall is 9 West 57th Street, 26th Floor, New York, New
York 10019. The principal business address of CSO and CLEX is c/o Fortis Fund
Services (Cayman) Limited, P.O. Box 2003 GT, Grand Pavilion Commercial Centre,
802 West Bay Road, Grand Cayman, Cayman Islands.

 (c) The principal business of CGI is investing for funds and accounts
under its management. The principal business of CSO and CLEX is to invest in
securities. George Hall is the Chief Investment Officer and President of CGI.
Jerry W. Levin, Steven Isko and Michael Popson are Managing Directors at CGI.

 (d) None of the Reporting Persons nor any of the individuals set forth
in Schedule A attached hereto has, during the last five years, been convicted in
a criminal proceeding (excluding traffic violations or similar misdemeanors).

 (e) None of the Reporting Persons nor any of the individuals set forth
in Schedule A attached hereto has, during the last five years, been a party to a
civil proceeding of a judicial or administrative body of competent jurisdiction
and as a result of such proceeding was or is subject to a judgment, decree or
final order enjoining future violations of, or prohibiting or mandating
activities subject to, federal or state securities laws or finding any violation
with respect to such laws.

 (f) George Hall, Jerry W. Levin, Steven Isko and Michael Popson are
citizens of the United States of America.

 The name, citizenship, present principal occupation or employment and
business address of each director and executive officer of CGI, CSO and CLEX is
set forth in Schedule A attached hereto. To the best of the Reporting Persons'
knowledge, except as set forth in this statement on Schedule 13D, none of such
individuals owns any Shares.

ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.

 Funds for the purchase of the Shares reported herein were derived from
available capital of CSO and CLEX and from the personal funds of George Hall,
Jerry W. Levin, Steven Isko and Michael Popson. A total of approximately
$1,778,636 was paid to acquire the Shares beneficially owned by CSO, CLEX and
George Hall. Mr Levin, Mr. Isko and Mr. Popson paid approximately $1,579,536,
$277,500 and $277,500, respectively, to acquire the Shares beneficially owned by
them.

ITEM 4. PURPOSE OF TRANSACTION.

 The Reporting Persons originally acquired Shares for investment because
they believed that the Shares, when purchased, were undervalued and represented
an attractive investment opportunity.

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CUSIP NO. 820013100 SCHEDULE 13D PAGE 10 OF 15 PAGES
------------------------------ ---------------------

Except as set forth herein or as would occur upon completion of any of the
actions discussed herein, including in any Exhibits hereto, the Reporting
Persons have no present plan or proposal that would relate to or result in any
of the matters set forth in subparagraphs (a)-(j) of Item 4 of Schedule 13D. The
Reporting Persons intend to review their investment in the Issuer on a
continuing basis and may engage in discussions with management, the board of
directors, other shareholders of the Issuer and other relevant parties
concerning the business, operations, management, strategy and future plans of
the Issuer. Depending on various factors including, without limitation, the
Issuer's financial position and strategic direction, the outcome of the
discussions and actions referenced above, actions taken by the board of
directors, price levels of the Shares, other investment opportunities available
to the Reporting Persons, conditions in the securities market and general
economic and industry conditions, the Reporting Persons may in the future take
such actions with respect to their investment in the Issuer as they deem
appropriate including, without limitation, purchasing additional Shares or
selling some or all of their Shares, engaging in short selling of or any hedging
or similar transactions with respect to the Shares and/or otherwise changing
their intention with respect to any and all matters referred to in Item 4 of
Schedule 13D.

ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.

 (a) As of the close of business on December 10, 2007, the Reporting
Persons beneficially owned an aggregate of 1,092,270 Shares, constituting
approximately 7.2% of the Shares outstanding.

 The aggregate percentage of Shares beneficially owned by the Reporting
Persons is based upon 15,149,247 Shares outstanding, which is the total number
of Shares outstanding as of September 6, 2007 as reported by the Issuer in its
Quarterly Report filed on September 10, 2007 on Form 10-Q for the period ended
July 31, 2007.

 (b) By virtue of investment management agreements with each of CSO and
CLEX, CGI has the power to vote or direct the voting, and to dispose or direct
the disposition, of the 225,942 Shares held by CSO and the 234,667 Shares held
by CLEX. By virtue of his direct and indirect control of CGI, George E. Hall is
deemed to have shared voting power and shared dispositive power with respect to
all Shares as to which CGI has voting power or dispositive power and he
individually holds an additional 38,000 Shares. Accordingly, CGI and George E.
Hall are deemed to have shared voting and shared dispositive power with respect
to an aggregate of 460,609 Shares and George Hall has sole voting and
dispositive power with respect to an additional 38,000 Shares. Jerry W. Levin,
Steven Isko and Michael Popson have sole voting power and sole dispositive power
over the Shares owned by each of them. By virtue of the employment of Jerry W.
Levin, Steven Isko and Michael Popson by CGI, the Reporting Persons may be
deemed to have formed a "group" within the meaning of Section 13(d)(3) of the
Securities Act of 1934 and may be deemed to have voting control over a combined
7.2% of the Shares. However, each of the Reporting Persons expressly disclaims
beneficial ownership of the Shares beneficially owned by the other Reporting
Persons.

 (c) Information concerning transactions in the Shares effected by the
Reporting Persons in the past sixty days is set forth in Schedule B hereto and
is incorporated herein by reference. Unless otherwise indicated, all of such
transactions were effected in the open market.

 (d) No person other than the Reporting Persons is known to have the
right to receive or the power to direct the receipt of dividends from, or the
proceeds from the sale of, the Shares.

 (e) Not applicable.

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 11 OF 15 PAGES
------------------------------ ---------------------

ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
 RESPECT TO SECURITIES OF THE ISSUER.

 The Issuer, Jerry W. Levin and JWL Partners LLC, a management and
investment firm Mr. Levin founded in 2005, are party to a Services Agreement,
dated September 25, 2006 (the "SERVICES AGREEMENT") pursuant to which Mr. Levin
agreed to serve as Chairman and Interim Chief Executive Officer of the Issuer
and JWL Partners agreed to provide supporting management consulting services,
including the services of Mr. Isko and Mr. Popson, to the Issuer. The term of
the agreement was one year, subject to earlier termination by either party.
Compensation was $750,000 annually in the aggregate for the services of Mr.
Levin and JWL Partners, including the services of Mr. Isko and Mr. Popson, in
addition to reimbursement of travel and other business expenses. In addition,
under the Services Agreement Mr. Levin received options to purchase 60,000
shares of the Company's common stock, and Mr. Isko and Mr. Popson each received
options to purchase 20,000 shares of the Company's common stock. All of these
options have an exercise price equal to the fair market value of the Company's
common stock on the grant date and vested 50% immediately, with the remaining
portion vesting after one year of service. The foregoing description is a
summary only and is qualified by reference to the Services Agreement, a copy of
which is filed as Exhibit B to this Schedule 13D and is incorporated herein by
reference.

 On March 8, 2007, the Issuer, Jerry W. Levin and JW Levin Partners LLC
entered into an amendment to the Services Agreement (the "FIRST AMENDMENT"). The
First Amendment provided that, if requested by the Board of Directors, Mr. Levin
would remain as Chairman of the Board, following the Issuer's appointment of a
permanent Chief Executive Officer, through September 25, 2007 (the last day of
the term of the Services Agreement), and increases the monthly compensation paid
to JWL Partners by $100,000 in the aggregate for the services of Mr. Levin and
JWL Partners, including the services of Mr. Isko and Mr. Popson, payable for the
period starting February 1, 2007 through a period of 90 days following the end
of Mr. Levin's term under the Services Agreement as Chief Executive Officer, but
in no event beyond September 25, 2007. The First Amendment also provides for the
grant of options to purchase 65,301 shares of the Company's common stock to Mr.
Levin and the grant of options to purchase 21,766 shares of the Company's common
stock to each of Mr. Isko and Mr. Popson. All of these options have an exercise
price equal to the fair market value of the Company's common stock on the grant
date and became exercisable on September 25, 2007. The foregoing description is
a summary only and is qualified by reference to the First Amendment, a copy of
which is filed as Exhibit C to this Schedule 13D and is incorporated herein by
reference.

 On August 23, 2007, the Issuer, Jerry W. Levin and JW Levin Partners LLC
entered into an Amendment Number 2 to the Services Agreement (the "SECOND
AMENDMENT"), pursuant to which the term of the Services Agreement was extended
through January 31, 2009. The Second Amendment also provides that Jerry W. Levin
will remain Chairman of the Board of Directors of the Issuer during the term of
the Services Agreement. The Second Amendment also provides for the grant of
options to purchase 40,000 and 20,001 shares of the Company's common stock to
Mr. Levin on September 25, 2007 and September 25, 2008, respectively and the
grant of options to purchase 20,000 and 6,666 shares of the Company's common
stock to each of Mr. Isko and Mr. Popson on September 25, 2007 and September 25,
2008, respectively. All of these options will have an exercise price equal to
the fair market value of the Company's common stock on the grant date and will
become vested 50% upon grant and 50% upon the earlier to occur of January 31,
2009, a change of control or specified involuntary termination events (including
termination by the Company without cause or by JW Levin Partners LLC due to the
Company's material breach of the Services Agreement). If certain other specified
termination events (including the termination by the Company for cause or JW
Levin Partners LLC's material breach of the Services Agreement, or termination
by JW Levin Partners LLC for convenience) occur, the 50% not vested upon grant
will not become vested. Options that will be or were previously granted under
the Services Agreement will remain exercisable until the earlier of the end of
their 10-year term and the expiration of a period of time equal to the number of
years of service of Jerry W. Levin as a director of the Issuer, but not less
than three years, after termination of Jerry W. Levin's service as a director of
the Issuer. The foregoing description is a summary only and is qualified by
reference to the Second Amendment, a copy of which is filed as Exhibit D to this
Schedule 13D and is incorporated herein by reference.

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 12 OF 15 PAGES
------------------------------ ---------------------

 On September 25, 2007 the Issuer, Jerry W. Levin and JW Levin Partners
LLC entered into an Amended and Restated Amendment Number 2 to the Services
Agreement, (the "RESTATED SECOND AMENDMENT") pursuant to which the number of
options granted to Mr. Levin under the Second Amendment was corrected from
40,000 to 60,000. The foregoing description is a summary only and is qualified
by reference to the Restated Second Amendment, a copy of which is filed as
Exhibit E to this Schedule 13D and is incorporated herein by reference.

 Except as otherwise set forth herein, the Reporting Persons do not
have any contract, arrangement, understanding or relationship with any person
with respect to the securities of the Issuer.

ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.

Exhibit A - Joint Filing Agreement dated December [10], 2007

Exhibit B - Services Agreement, dated September 25, 2006, by and between Sharper
Image Corporation, Jerry W. Levin and JW Levin Partners LLC (incorporated by
reference to Exhibit 10.1 to the Current Report on Form 8-K of Sharper Image
Corporation, filed September 29, 2006).

Exhibit C - Amendment Number 1 to Services Agreement, dated March 8, 2007
(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of
Sharper Image Corporation, filed March 9, 2007).

Exhibit D - Amendment Number 2 to Services Agreement, dated August 23, 2007
(incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K of
Sharper Image Corporation, filed August 27, 2007).

Exhibit E - Amended and Restated Amendment Number 2 to Services Agreement, dated
September 25, 2007 (incorporated by reference to Exhibit 10.1 to the Current
Report on Form 8-K of Sharper Image Corporation, filed September 27, 2007).

--------------------------- -------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 13 OF 15 PAGES
--------------------------- -------------------

 SIGNATURES

 After reasonable inquiry and to the best of his or its knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.

Dated: December 10, 2007


 CLINTON GROUP, INC.

 By: /s/ Francis Ruchalski
 ---------------------------
 Name: Francis Ruchalski
 Title: Comptroller


 CLINTON SPECIAL OPPORTUNITIES MASTER FUND, LTD.
 By: Clinton Group, Inc. its investment
 manager

 By: /s/ Francis Ruchalski
 ---------------------------
 Name: Francis Ruchalski
 Title: Comptroller


 CLINTON LEXINGTON MASTER FUND, L.P.
 By: Clinton Group, Inc. its investment
 manager

 By: /s/ Francis Ruchalski
 ---------------------------
 Name: Francis Ruchalski
 Title: Comptroller


 /s/ George E. Hall
 ------------------------------
 George E. Hall


 /s/ Jerry W. Levin
 ------------------------------
 Jerry W. Levin


 /s/ Steven R. Isko
 ------------------------------
 Steven R. Isko


 /s/ Michael A. Popson
 ------------------------------
 Michael A. Popson

--------------------------- -------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 14 OF 15 PAGES
--------------------------- -------------------
 SCHEDULE A

 DIRECTORS AND EXECUTIVE OFFICERS OF CERTAIN REPORTING PERSONS

 The following sets forth the name, position and principal occupation of
each director and executive officer of CGI. Each such person is a citizen of the
United States of America. The business address of each director and executive
officer is 9 West 57th Street, 26th Floor, New York, New York 10019.

CLINTON GROUP, INC.

Name Position
--------------------------- -------------------------------------------
George E. Hall Director and President
Francis A. Ruchalski Director and Chief Financial Officer
Wendy Ruberti General Counsel and Assistant Secretary
John L. Hall Director

 The following sets forth the name, citizenship, principal occupation and
business address of each director of CSO, and of the general partner of CLEX.
There are no executive officers of CSO and CLEX.

CLINTON SPECIAL OPPORTUNITIES MASTER FUND, LTD.

Dennis Hunter is a citizen of the United Kingdom. His principal occupation is
Director of Queensgate Bank & Trust Company Ltd. His business address is
Queensgate Bank & Trust Company Ltd., Harbour Place, 5th Floor, 103 South Church
Street, P.O. Box 30464 SMB, Grand Cayman, Cayman Islands.

Roger Hanson is a citizen of the United Kingdom. His principal occupation is
director of dms Management Ltd. His business address is dms Management Ltd.,
P.O. Box 31910 SMB, Ansbacher House, 20 Genesis Close, Grand Cayman, Cayman
Islands.

Cassandra Powell is a citizen of the Cayman Islands. Her principal occupation is
Senior Manager of Queensgate Bank & Trust Company Ltd. Her business address is
Queensgate Bank & Trust Company Ltd., Harbour Place, 5th Floor, 103 South Church
Street, P.O. Box 30464 SMB, Grand Cayman, Cayman Islands.

CLINTON LEXINGTON MASTER FUND, L.P.

Clinton GP, Inc., a Delaware limited liability company ("Clinton GP"), is the
general partner of Clinton Lexington Master Fund, L.P. Clinton GP is controlled
by George E. Hall. George E. Hall's citizenship, principal occupation and
business address are set forth above.

------------------------------ ---------------------
CUSIP NO. 820013100 SCHEDULE 13D PAGE 15 OF 15 PAGES
------------------------------ ---------------------

 SCHEDULE B

 TRANSACTIONS IN THE SHARES BY THE REPORTING PERSONS DURING THE PAST SIXTY DAYS


Clinton Special Opportunities Master Fund, Ltd.

 Trade Date Shares Purchased (Sold) Price Per Share ($)
 ---------- ----------------------- -------------------
 10/01/07 9,500 4.08
 10/02/07 5,100 4.06
 10/11/07 5,400 3.38
 10/12/07 12,600 2.58
 10/15/07 2,500 1.81
 11/02/07 38,500 3.01
 11/06/07 7,618 3.05
 11/07/07 11,000 3.00
 11/08/07 9,100 2.99
 11/27/07 50,000 3.23

Clinton Lexington Master Fund, L.P.

 Trade Date Shares Purchased (Sold) Price Per Share ($)
 ---------- ----------------------- -------------------
 10/01/07 9,605 4.08
 10/11/07 5,400 3.38
 10/12/07 12,600 2.58
 10/15/07 2,500 1.81
 10/26/07 5,470 2.95
 11/02/07 38,500 3.01
 11/06/07 7,600 3.05
 11/07/07 11,000 3.00
 11/08/07 9,100 2.99
 11/27/07 50,000 3.23

George Hall

 Trade Date Shares Purchased (Sold) Price Per Share ($)
 ---------- ----------------------- -------------------
 10/31/07 38,000 2.81

Jerry W. Levin (IRA Account)

 Trade Date Shares Purchased (Sold) Price Per Share ($)
 ---------- ----------------------- -------------------
 10/16/07 50,000 1.84
 10/17/07 50,000 1.78