EXHIBIT 99.7


                                                                  ANNUAL GRANT

                                 COLDWATER CREEK INC.
                       NOTICE OF GRANT OF NON-EMPLOYEE DIRECTOR
                                AUTOMATIC STOCK OPTION


         Notice is hereby given of the following option grant (the "Option") to
purchase shares of the Common Stock of Coldwater Creek Inc. (the "Corporation"):

         OPTIONEE: __________________________________________________________

         GRANT DATE: ________________________________________________________

         EXERCISE PRICE:  $ _______________________________________ per share

         NUMBER OF OPTION SHARES:  1,672 shares

         EXPIRATION DATE:____________________________________________________

         TYPE OF OPTION:  Non-Statutory Stock Option

         DATE EXERCISABLE:  Immediately Exercisable

         VESTING SCHEDULE:  The Option Shares shall initially be unvested and
         subject to repurchase by the Corporation at the Exercise Price paid
         per share.  Optionee shall acquire a vested interest in, and the
         Corporation's repurchase right shall accordingly lapse with respect
         to, one hundred percent (100%) of the Option Shares upon the
         Optionee's completion of one year of service as a member of the
         Corporation's Board of Directors (the "Board") period measured from
         the Grant Date.  In no event shall any additional Option Shares vest
         after Optionee's cessation of Board service. 

         Optionee understands and agrees that the Option is granted subject 
to and in accordance with the terms of the automatic option grant program 
under the Coldwater Creek Inc. 1996 Stock Option/Stock Issuance 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 Automatic Stock Option Agreement 
attached hereto as Exhibit A.

         Optionee hereby acknowledges 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.





         REPURCHASE RIGHT.  OPTIONEE HEREBY AGREES THAT ALL UNVESTED OPTION 
SHARES ACQUIRED UPON THE EXERCISE OF THE OPTION SHALL NOT BE TRANSFERABLE AND 
SHALL BE SUBJECT TO REPURCHASE BY THE CORPORATION, AT THE EXERCISE PRICE PAID 
PER SHARE, UPON OPTIONEE'S TERMINATION OF SERVICE AS A MEMBER OF THE 
CORPORATION'S BOARD OF DIRECTORS.  THE TERMS AND CONDITIONS OF SUCH 
REPURCHASE RIGHT SHALL BE SPECIFIED IN A STOCK PURCHASE AGREEMENT, IN FORM 
AND SUBSTANCE SATISFACTORY TO THE CORPORATION, EXECUTED BY OPTIONEE AT THE 
TIME OF THE OPTION EXERCISE.

         NO IMPAIRMENT OF RIGHTS.  Nothing in this Notice or in the attached 
Automatic Stock Option Agreement or the Plan shall interfere with or 
otherwise restrict in any way the rights of the Corporation or the 
Corporation's stockholders to remove Optionee from the Board at any time in 
accordance with the provisions of applicable law.

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

DATED: __________________________________, 199_ 


                                        COLDWATER CREEK INC.

                                        By:    ______________________________

                                        Title: ______________________________

                                               ______________________________
                                                         OPTIONEE

                                        Address: ____________________________

                                                 ____________________________



ATTACHMENTS

EXHIBIT A - AUTOMATIC STOCK OPTION AGREEMENT
EXHIBIT B - PLAN SUMMARY AND PROSPECTUS

                                       2.




                                      EXHIBIT A

                           AUTOMATIC STOCK OPTION AGREEMENT





                                      EXHIBIT B

                             PLAN SUMMARY AND PROSPECTUS