<PAGE>
 
                                                                    EXHIBIT 10.1
<TABLE>
<CAPTION>
                                                      PROMISSORY NOTE
------------------------------------------------------------------------------------------------------------------------------------
    Principal        Loan Date        Maturity        Loan No.       Call      Collateral       Account      Officer      Initials
   <S>               <C>             <C>              <C>            <C>       <C>              <C>          <C>          <C>
   $500,000.00       12-8-1998       11-01-2001         31429                                   496077         KEB
------------------------------------------------------------------------------------------------------------------------------------
              References in the shaded are for Lender's use only and do not limit the applicability of this document 
                                                  to any particular loan or item
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE> 
<C>               <C>                                     <C>            <S>
Borrower:         SIGNATURE EYEWEAR, INC.,                Lender:        City National Bank, a National Banking Association
                  A CALIFORNIA CORPORATION                               San Gabriel Valley Commercial Banking Center #051000
                  408 NORTH OAK STREET                                   13191 Crossroads Parkway North
                  INGLEWOOD, CA  90302                                   City of Industry, CA  91746
</TABLE> 
<TABLE> 
<S>                                         <C>                               <C> 
Principal Amount: $500,000.00               Interest Rate:  6.750%            Date of Note: December 8, 1998
</TABLE>
                                                                                
PROMISE TO PAY.  SIGNATURE EYEWEAR, INC., A CALIFORNIA CORPORATION ("Borrower")
promises to pay to City National Bank, a National Banking Association
("Lender"), or order, in lawful money of the United States of America, the
principal amount of Five Hundred Thousand & 00/100 Dollars ($500,000.00),
together with interest at the rate of 6.750% on the unpaid principal balance
from November 18, 1998, until paid in full.

PAYMENT.  Borrower will pay this loan in 23 principal payments of $20,833.33
each and one final principal and interest payment of $20,954.50.  Borrower's
first principal payment is due December 1, 1999, and all subsequent principal
payments are due on the same day of each month after that.  In addition,
Borrower will pay regular monthly payments of all accrued unpaid interest due as
of each payment date.  Borrower's first interest payment is due December 1,
1998, and all subsequent interest payments are due on the same day of each month
after that.  Borrower's final payment due November 1, 2001 will be for all
principal and accrued interest not yet paid.  The annual interest rate for this
Note is computed  on a 365/360 basis; that is, by applying the ratio of the
annual interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal balance
is outstanding.  Borrower will pay Lender at Lender's address shown above or at
such other place as Lender may designate in writing.  Unless otherwise agreed or
required by applicable law, payments will be applied first to accrued unpaid
interest, then to principal, and any remaining amount to any unpaid collection
costs and late charges.

PREPAYMENT;  MINIMUM INTEREST CHARGE.  In any event, even upon full prepayment
of this Note, Borrower understands that Lender is entitled to a minimum interest
charge of $100.00.  Other than Borrower's obligation to pay any minimum interest
charge, Borrower may pay without penalty all or a portion of the amount owed
earlier than it is due.  Early payments will not, unless agreed to by Lender in
writing, relieve Borrower of Borrower's obligation to continue to make payments
under the payment schedule.  Rather, they will reduce the principal balance due
and may result in Borrower making fewer payments.

DEFAULT.  Borrower will be in default if any of the following happens:  (a)
Borrower fails to make any payment when due.  (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform when
due any other term, obligation, covenant, or condition contained in this Note or
any agreement related to this Note, or in any other agreement or loan Borrower
has with Lender.  (c) Any representation or statement made or furnished to
Lender by Borrower or on Borrower's behalf is false or misleading in any
material respect either now or at the time made or furnished.  (d) Borrower
becomes insolvent, a receiver is appointed for any part of Borrower's property,
Borrower makes an assignment for the benefit of creditors, or any proceeding is
commenced either by Borrower or against Borrower under any bankruptcy or
insolvency laws.  (e) Any creditor tries to take any of Borrower's property on
or in which Lender has a lien or security interest.  This includes a garnishment
of any of Borrower's accounts with Lender.  (f) Any guarantor dies or any of the
other events described in this default section occurs with respect to any
guarantor of this Note.  (g) A material adverse change occurs in Borrower's
financial condition, or Lender believes the prospect of payment or performance
of the Indebtedness is impaired.  (h) Lender in good faith deems itself
insecure.

LENDER'S RIGHTS.  Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, without
notice, and then Borrower will pay that amount.  Upon Borrower's failure to pay
all amounts declared due pursuant to this section, including failure to pay upon
final maturity, Lender, at its option, may also, if permitted under applicable
law, increase the interest rate on this Note 5.000 percentage points.  Lender
may hire or pay someone else to help collect this Note if Borrower does not pay.
Borrower also will pay Lender that amount.  This includes, subject to any limits
under applicable law, Lender's attorneys' fees and Lender's legal expenses
whether or not there is a lawsuit, including attorneys' fees and legal expenses
for bankruptcy proceedings (including efforts to modify or vacate any automatic
stay or injunction), appeals, and any anticipated post-judgment collection
services.  Borrower also will pay any court costs, in addition to all other sums
provided by law.  This Note has been delivered to Lender and accepted by Lender
in the State of California.  If there is a lawsuit, Borrower agrees upon
Lender's request to submit to the jurisdiction of the courts of Los Angeles
County, the State of California.  This Note shall be governed by and construed
in accordance with the laws of the State of California.

DISHONORED ITEM FEE.  Borrower will pay a fee to Lender of $10.00 if Borrower
makes a payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF.  Borrower grants to Lender a contractual possessory security
interest in, and hereby assigns, conveys, delivers, pledges, and transfers to
Lender all Borrower's right, title and interest in and to, Borrower's accounts
with Lender (whether checking, savings, or some other account), including
without limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future, excluding however all IRA and Keogh accounts,
and all trust accounts for which the grant of a security interest would be
prohibited by law.  Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on this Note against any and
all such accounts.

GENERAL PROVISIONS.  Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them.  Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive any
applicable statute of limitations, presentment, demand for payment, protest and
notice of dishonor.  Upon any change in the terms of the Note, and unless
otherwise expressly stated in writing, no party who signs this Note, whether as
maker, guarantor, accommodation maker or endorser, shall be released from
liability.  All such parties agree that Lender may renew or extend (repeatedly
and for any length of time) this loan, or release any party or guarantor or
collateral; or impair, fail to realize upon or perfect Lender's security
interest in the collateral; and take any other action deemed necessary by Lender
without the consent of or notice to anyone.  All such parties also agree that
Lender may modify this loan without the consent of or notice to anyone other
than the party with whom the modification is made.
<PAGE>
 
11-18-1998                                                                Page 2
Loan No. 31429                  PROMISSORY NOTE
                                  (Continued)

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE.  BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF
A COMPLETED COPY OF THE NOTE.

BORROWER:

SIGNATURE EYEWEAR, INC., A CALIFORNIA CORPORATION

By:   /s/ Michael Prince
   --------------------------
   MICHAEL PRINCE, CFO