EXHIBIT 10.26


                       AMENDMENT TO EMPLOYMENT AGREEMENT
                                  AND RELEASE

      THIS AMENDMENT TO EMPLOYMENT AGREEMENT AND RELEASE (this "Amendment")  is
dated  as  of  the  21st  day of January 2000 by and between  DONALD  J.  WANAT
("Employee"), and GARGOYLES, INC., a Washington corporation (the "Company").

                                    RECITALS

      A.    Employee  and  the Company are parties to that  certain  Employment
Agreement dated as of June 14, 1999 (the "Employment Agreement").

      B.    Subject  to the terms and conditions set forth herein, the  parties
desire to terminate the Employment Agreement and to resolve all matters related
thereto.

      C.    Capitalized terms used but not otherwise defined herein shall  have
the meanings set forth in the Employment Agreement.

                                   AGREEMENT

      1.    TERMINATION  OF EMPLOYMENT AGREEMENT.  Subject  to  the  terms  and
conditions  of  this  Amendment,  the parties  have  agreed  to  terminate  the
Employment Agreement as of January 21, 2000 (the "Termination Date").

     2.   SEVERANCE BENEFITS.

           (a)   AMENDMENT  TO  SECTION 6.5.  Section  6.5  of  the  Employment
Agreement shall be amended to provide that the $200,000 severance payment  (the
"Severance  Payment") to be made to Employee upon termination of the Employment
Agreement shall be paid in four equal installments of $50,000 on each the  date
of  this  Amendment, February 22, March 22, and April 21 in the year 2000.   If
Employer  fails  to  pay an installment of the Severance Payment  on  the  date
specified, then the Company's obligation to pay the Severance Payment shall  be
accelerated, and the entire balance of the Severance Payment shall be  due  and
payable to Employee.

           (b)   EXPENSE  REIMBURSEMENT.  Employee will be reimbursed  for  any
reasonable  expenses  incurred by Employee prior to  the  Termination  Date  on
behalf  of the Company, subject to the receipt by the Company of all supporting
documentation. Employee understands that after the Termination Date Employee is
no  longer authorized to incur expenses or to make commitments on behalf of the
Company.

           (c)   FTO.   Employee  understands that he will  accrue  no  further
Flexible  Time  Off  from and after the Termination Date.  On  the  Termination
Date,  Employee  will  be  paid for any earned but  unused  Flexible  Time  Off
benefits, less all required and authorized deductions.

           (d)   COBRA;  LIFE  AND DISABILITY INSURANCE.   In  accordance  with
Section  6.5  of the Employment Agreement, for a period of twelve  (12)  months
after the Termination Date or until Employee is covered under another Employer-
sponsored medical plan, the Company will reimburse Employee for such portion of
Employee's  COBRA benefits equal to the contribution amount the  Company  would
otherwise  have paid towards Employee's medical and dental coverages under  the
Company's group medical and dental benefits plans if Employee had been employed
by  the Company during such twelve-month period.  After that time, Employee may
elect  to  pay  for  COBRA  medical and dental plan continuation  coverage  for
another  six months, until Employee is entitled to Medicare, or until  Employee
is  covered  under other plans with no pre-existing exclusion.   The  insurance
provider will provide Employee with further information about his COBRA  rights
after the Termination Date.

It is the understanding of the Company that the Company can maintain Employee's
life and disability coverage for the next twelve months through Fortis Benefits
Insurance  Company,  the  provider of the Company's Group  Life  and  Long-term
Disability  coverage,  so  long  as Employee completes  the  Extended  Employee
Enrollment form to be provided by Fortis.  The Company will continue Employee's
life  and  disability  coverage  through  Fortis  on  condition  that  Employee
completes  such  forms  and satisfies any conditions precedent  for  Employee's
continued coverage.

           (e)   ELIGIBILITY FOR UNEMPLOYMENT.  Employee understands that while
the  Company  has no authority to determine unemployment benefits, the  Company
will  not  attempt to interfere or deny such benefits if and when  they  should
become available to Employee.

      3.    STOCK  OPTIONS.  As of the Termination Date, Employee is vested  in
17,500 options to purchase the Company's common stock, at an exercise price  of
$0.32 per share.  Employee understands that he will not continue to vest in any
more  options, that his rights to unvested options shall immediately terminate,
and that the vested options will continue to be governed by the Gargoyles, Inc.
1995  Stock  Incentive Compensation Plan, as Amended and Restated on  July  22,
1996  (the "Plan").  Under the terms of the Plan, Employee's right to  exercise
the vested options shall terminate on April 21, 2000.

      4.    COMPLETE RELEASE OF CLAIMS.  By signing this Agreement, the Company
and  Employee  agree not to start any lawsuits, charges, or other legal  action
against  the  other relating to Employee's employment with the Company  or  the
benefits  that  Employee  received or should have  received  from  the  Company
(except  with  respect  to  a breach of the Company's  obligations  under  this
Amendment  or  the  Employee's obligations under Section 7  through  9  of  the
Employment Agreement, which are not released by this Section 4).  In  addition,
the  Company  and  Employee,  for itself and himself  and  for  each  of  their
respective heirs, representatives, executors, and successors or assigns, waives
any  rights  or  claims each may have against the other, any  employee  benefit
plans  sponsored by the Company in which Employee participated, and any of  the
Company's  or Employee's affiliated and related entities, owners, shareholders,
officers, directors, trustees, agents, spouses. employees, employees'  spouses,
insurers,  either  past  or  present, and all of their  successors,  agents  or
assigns  (collectively  "Releasees").  The Company  and  Employee  each  hereby
releases  the  Releasees from any and all claims, actions,  causes  of  action,
obligations,  costs, expenses, damages, losses, debts, and  demands,  including
attorneys' fees and costs actually incurred (collectively "Claims") of whatever
kind,  in  law or in equity, known or unknown, suspected or unsuspected,  which
arose prior to the Termination Date.

      This  release includes, but is not limited to:  (i) any Claims under  any
local,   state  or  federal  laws  regulating  employment,  including   without
limitation,  the Civil Rights Acts, the Age Discrimination and Employment  Act,
the  Americans  with Disabilities Act, the Workers' Adjustment  and  Retraining
Notification  Act,  and the Washington State Law Against  Discrimination;  (ii)
Claims  under  the Employee Retirement Income Security Act; (iii) Claims  under
any  local,  state or federal wage and hour laws; or (iv) Claims  alleging  any
legal  restriction  on  the Company's right to terminate  their  employees,  or
personal  injury  claims,  including without limitation  wrongful  termination,
discrimination,   harassment,   breach  of   contract,   defamation,   tortuous
interference  with  business  expectancy,  black  listing,  or  infliction   of
emotional distress, whether arising under statute or common law.

      5.    CONTINUATION  OF CONFIDENTIALITY PROVISIONS.  Employee  understands
that  as  of  the  Termination  Date the Term of the  Employment  Agreement  is
terminated  and  Employee has no further obligations to the Company  under  the
Employment Agreement, or otherwise, except for the terms set forth in  Sections
7  through  9  of the Employment Agreement relating to "Intellectual  Property;
Nondisclosure  of  Confidential Information; Covenant Not to  Compete,  Dispute
Resolution,  and  Enforcement",  which shall remain  in  effect  following  the
Termination Date in accordance with their terms.

      6.   CONSULTATION WITH LEGAL COUNSEL.  Employee has carefully read all of
the provisions of this Amendment, and further acknowledges that the Company has
encouraged  Employee to review and discuss all aspects of this  Amendment  with
legal  counsel and that he has taken advantage of that opportunity to the  full
extent that he deemed appropriate.

      7.   CONSIDERATION PERIOD; REVOCATION PERIOD.  Employee acknowledges that
he has been given 21 days to consider this Amendment, and that he was given the
option  to  sign  the Amendment in fewer than twenty-one (21)  days  if  he  so
desired.   Employee understands that this Amendment will not be  effective  for
seven  (7)  days  after  it is signed by the Company  and  Employee,  and  that
Employee  may  revoke this Amendment at any time during that seven-day  period.
Employee acknowledges, however, that any severance payments made to Employee in
accordance  with this Amendment prior to any revocation must be repaid  to  the
Company in full as a condition to any such revocation becoming effective.

      8.    VOLUNTARY  AGREEMENT.  Employee understands  and  acknowledges  the
significance and consequences of this Amendment, that it is voluntary, that  it
has not been given as a result of any coercion, and expressly confirms that  it
is  to  be given full force and effect according to all of its terms, including
those relating to unknown Claims.

      9.   SUCCESSORS.  This Amendment shall be binding upon the parties hereto
and  their  heirs, representatives, executors, administrators,  successors  and
assigns,  and shall inure to the benefit of each and all of the Releasees,  and
to  their  heirs,  representatives, executors, administrators,  successors  and
assigns.

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.


ARGOYLES, INC.,
a Washington corporation


By  /s/ Leo Rosenberger
    --------------------------------
    Leo Rosenberger, CEO and CFO


/s/ Donald J. Wanat
------------------------------------
DONALD J. WANAT