Exhibit 10.2

                               RENEWAL TERM NOTE I



$13,000,000                                                  September 17, 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 Thirteen Million Dollars  ($13,000,000)  in lawful  immediately
available  money of the United States of America,  in accordance  with the terms
and conditions of that certain first amended and restated credit agreement 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")  and that  certain  ninth  amendment  to first  amended and restated
credit  agreement of even date herewith (the "Ninth  Amendment").  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.

     This Note is the Renewal Term Note I referred to in the Ninth Amendment and
as such is entitled to all of the  benefits  and  obligations  specified  in the
Credit Agreement, including but not limited to any Collateral and any conditions



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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/ Leo Rosenberger
                                  -------------------------------
                                  Title: CEO and CFO