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                                                                   EXHIBIT 10.61

                             RENEWAL REVOLVING NOTE



$14,000,000                                                     January 15, 1998


      For value received, the undersigned, GARGOYLES, INC. ("Borrower"),
promises to pay to the order of U. S. BANK NATIONAL ASSOCIATION ("U. S. Bank"),
at its principal place of business, 1420 Fifth Avenue, Seattle, Washington
98101, or such other place or places as the holder hereof may designate in
writing, the principal sum of Fourteen Million Dollars ($14,000,000) or so much
thereof as advanced by U. S. Bank in lawful, immediately available money of the
United States of America, in accordance with the terms and conditions of that
certain credit agreement of even date herewith dated as of April 7, 1997, by and
between Borrower and U. S. Bank (together with all supplements, exhibits,
amendments and modifications thereto, the "Credit Agreement"). Borrower also
promises to pay interest on the unpaid principal balance hereof, in like money
in accordance with the terms and conditions, and at the rate or rates provided
for in the Credit Agreement. All principal, interest, and other charges are due
and payable in full on April 30, 1999.

      Borrower and all endorsers, sureties, and guarantors hereof jointly and
severally waive presentment for payment, demand, notice of nonpayment, notice of
protest, and protest of this Note, and all other notices in connection with the
delivery, acceptance, performance, default, dishonor, or enforcement of the
payment of this Note except such notices as are specifically required by this
Note or by the Credit Agreement, and they agree that the liability of each of
them shall be unconditional without regard to the liability of any other party
and shall not be in any manner affected by any indulgence, extension of time,
renewal, waiver, or modification granted or consented to by U. S. Bank. Borrower
and all endorsers, sureties, and guarantors hereof (1) consent to any and all
extensions of time, renewals, waivers, or modifications that may be granted by
U. S. Bank with respect to the payment or other provisions of this Note and the
Credit Agreement; (2) consent to the release of any property now or hereafter
securing this Note with or without substitution; and (3) agree that additional
makers, endorsers, guarantors, or sureties may become parties hereto without
notice to them and without affecting their liability hereunder.


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      This Note is the Renewal Revolving Note referred to in the Third Amendment
to First Amended and Restated Credit Agreement of even date herewith and as such
is 
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entitled to all of the benefits and obligations specified in the Credit
Agreement, including but not limited to any Collateral and any conditions to
making advances hereunder. Terms defined in the Credit Agreement are used herein
with the same meanings. Reference is made to the Credit Agreement for provisions
for the repayment of this Note and the acceleration of the maturity hereof.


                                      GARGOYLES, INC., a
                                      Washington corporation



                                      By: */s/ DOUGLAS B. HAUFF
                                         -----------------------------------

                                      Title: President & CEO
                                         -----------------------------------