Document:

EXHIBIT 10.3

                      SECOND AMENDMENT TO LEASE AGREEMENT

     THIS SECOND AMENDMENT TO LEASE AGREEMENT (this "Amendment") is made as of
this 24th day of February, 2000 by and between DB&D PARTNERSHIP, a Washington
general partnership ("Landlord"), and GARGOYLES, INC., a Washington corporation
("Tenant").

                                    RECITALS

     A.   Landlord and Tenant are parties to that certain Industrial Real
Estate Lease dated December 16, 1993, as amended by that certain Lease
Amendment dated March 17, 1995, for the premises located at 5866 S. 194th
Street, Kent, Washington 98032, containing approximately 25,841 square feet.
The Industrial Real Estate Lease as amended by the Lease Amendment shall be
referred to herein as the "Lease".

     B.   Subject to the terms and conditions set forth in this Amendment,
Landlord and Tenant desire to further amend the Lease to extend the term
thereof.

     C.   Capitalized terms used but not otherwise defined herein shall have
the meanings given them in the Lease.

                                   AGREEMENT

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
of the parties set forth herein, the parties hereby agree as follows:

     1.   TERM.  Section 1.05 of the Lease shall be amended as follows:

          (a)  EXTENSION OF TIME.  The Lease Term shall be extended to March
31, 2002 (the "Expiration Date").

          (b)  TENANT'S OPTION FOR EARLY TERMINATION OF LEASE TERM.  Tenant
shall have the option to terminate this Lease any time after August 1, 2001 by
giving Landlord at least four months' advance written notice of Tenant's desire
to exercise this early termination option.  In consideration for the early
termination of this Lease, on the termination date Tenant shall pay Landlord a
termination fee equal to thirty percent (30%) of the Base Rent otherwise due
until the Expiration Date.  For example:  If Tenant desires to terminate the
Lease as of August 1, 2001, then Tenant shall give notice on or before April 1,
2001 of its exercise of this early termination clause and on July 31, 2001
shall pay Landlord a termination fee of $54,737 ($22,807 X 8 months X 30%).

     2.   RENT.  Section 1.12 of the Lease shall be amended to provide that
Base Rent during the extended term of the Lease shall be as follows:

<TABLE>
<S>       <C>                                     <C>
          April 1, 2000 through March 31, 2001    $21,903 per month; and
          April 1, 2001 through March 31, 2002    $22,807 per month.
</TABLE>

     3.   WHOLE AGREEMENT; NO OTHER AMENDMENTS.  This Amendment sets forth the
entire agreement between the parties with respect to the matters set forth
herein, and the Lease shall remain in full force and effect except as amended
by this Amendment.

     IN WITNESS WHEREOF, the parties have executed this Second Amendment to
Lease Agreement as of the date first above written.

LANDLORD:                          TENANT:

DB&D PARTNERSHIP                   GARGOYLES, INC.

By:  /s/ Dennis Burns              By:  /s/ Leo Rosenberger
     ------------------------           ---------------------------
Name Dennis Burns                       Leo Rosenberger, CEO and CFO
Its  PartnerEXHIBIT 10.13

                    THIRD AMENDMENT TO EMPLOYMENT AGREEMENT
                                       OF
                                LEO ROSENBERGER

     THIS THIRD AMENDMENT TO EMPLOYMENT AGREEMENT (this "Amendment") is made as
of  this  First  day  of  February,  2000 by and  between  GARGOYLES,  INC.,  a
Washington corporation (the "Company"), and LEO ROSENBERGER ("Employee").

                                    RECITALS

      A.    The  Company  and Employee are parties to that  certain  Employment
Agreement  dated  as of February 1, 1998, which was amended  by  those  certain
Amendments  to  Employment Agreement dated March 31,  and  June  1,  1999  (the
"Employment Agreement"); and

      B.    The  Company  and Employee desire to further amend  the  Employment
Agreement in accordance with the terms hereof.

                                   AGREEMENT

      NOW,  THEREFORE,  in consideration of the premises  and  other  good  and
valuable  consideration,  the  receipt and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto hereby agree as follows:

      1.    TERM.   The  Term  of Employment set forth  in  Section  3  of  the
Employment  Agreement shall continue until the earlier of  (i)  the  date  upon
which Employee ceases to be the Chief Executive Officer of the Company, or (ii)
January 31, 2001; each of the dates described in (i) and (ii) being referred to
in the Employment Agreement as the "Expiration Date."

      2.    BASE SALARY.  Employee's Base Salary set forth in Section 4 of  the
Employment  Agreement is hereby amended, and effective as of the date  of  this
Amendment,  Employee's  annual Base Salary shall  be  Two  Hundred  Ninety-Five
Thousand Dollars ($295,000).

      3.   DEFINITION OF CHANGE IN CONTROL.  For purposes of this Amendment,  a
Change  in Control shall mean the earliest date upon which one of the following
occurs:  (i) the sale or other disposition of all or substantially all  of  the
assets  of the Company, except pursuant to a proceeding involving a foreclosure
and  liquidation  of  the  assets, (ii) the sale or other  transfer  of  voting
securities  representing a majority of the votes entitled to be  cast  for  the
election  of  directors of the Company, (iii) the sale or other transfer  of  a
majority  of  the  value  of  the equity of the  Company,  or  (iv)  a  merger,
consolidation,  reorganization  or  other  similar  transaction  involving  the
Company.

      4.   BONUS UPON A CHANGE IN CONTROL.  Upon the occurrence of a Change  in
Control which occurs on or before January 31, 2000, Employee shall have  earned
a  bonus  of Two Hundred Ninety-Five Thousand Dollars ($295,000), payable  upon
the date of the occurrence of the Change in Control.

      5.   SEVERANCE.  If prior to January 31, 2001, Employee's employment with
the  Company is terminated for any reason other than for cause or  due  to  the
death  or  voluntary  resignation of Employee, the Company shall  pay  Employee
severance in the amount of Two Hundred Ninety-Five Thousand Dollars ($295,000),
payable  on the date of termination of Employee's employment with the  Company.
If Employee has received the consideration set forth in Section 4 hereof due to
a  Change  in  Control, then no severance shall be due and payable to  Employee
under this Section 5.

      6.    NO  OTHER  AMENDMENTS.  The terms and provisions of the  Employment
Agreement are hereby ratified and confirmed and remain in full force and effect
except as amended by this Amendment.

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

GARGOYLES, INC.

/s/ Paul S. Shipman

By
    --------------------------------------------
    Paul S. Shipman, Member of the Board
    of Directors of Gargoyles, Inc. and Chair of
    the Compensation Committee of the Board

/s/  Leo Rosenberger
--------------------
LEO ROSENBERGERExhibit 10.21

                       FIRST AMENDMENT TO SECOND AMENDED
                              AND RESTATED CREDIT

     This first amendment to second amended and restated credit agreement
("Amendment") is made and entered into as of January 31, 2000, by and between
U.S. BANK NATIONAL ASSOCIATION ("U.S. Bank"), and GARGOYLES, INC., a Washington
corporation ("Borrower").

                                   RECITALS:

     A.   On or about May 28, 1999, U.S. Bank and Borrower entered into that
certain second amended and restated credit agreement (together with all
amendments, supplements, exhibits, and modifications thereto, the "Credit
Agreement") whereby U.S. Bank agreed to extend certain credit facilities to
Borrower.

     B.   The purpose of this Amendment is to set forth the terms and
conditions upon which U.S. Bank will extend the expiry and maturity dates of
the Loans and modify the Financial Covenants.

     NOW, THEREFORE, in consideration of the mutual covenants and conditions
set forth herein, the parties agree as follows:

ARTICLE I.  AMENDMENT; DEFINITIONS
----------------------------------

1.1  AMENDMENT

     The Credit Agreement and each of the other Loan Documents are hereby
amended as set forth herein.  Except as specifically provided for herein, all
of the terms and conditions of the Credit Agreement and each of the other Loan
Documents shall remain in full force and effect throughout the terms of the
Loans, as well as any extensions or renewals thereof.

1.2  DEFINITIONS

     As used herein, capitalized terms shall have the meanings given to them in
the Credit Agreement, except as otherwise defined herein, or as the context
otherwise requires.

ARTICLE II.    MODIFICATION OF EXPIRY AND MATURITY DATES
--------------------------------------------------------

2.1  REVOLVING LOAN AND LETTERS OF CREDIT

     Section 2.1 of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

          Subject to and upon the terms and conditions set forth herein and in
     reliance upon the representations, warranties, and covenants of Borrower
     contained herein or made pursuant hereto, U.S. Bank will make Fundings to
     Borrower from time to time during the period ending January 31, 2001
     ("Commitment Period"), but such Fundings (together with any outstanding
     Letters of Credit) shall not exceed, in the aggregate principal amount at
     any one time outstanding, $9,000,000 (the "Revolving Loan").  Borrower may
     borrow, repay, and reborrow hereunder either the full amount of the
     Revolving Loan or any lesser sum.  The Commitment Period shall be extended
     for one 1-year period, provided that (a) there exist no Events of Default
     as of January 31, 2001, (b) U.S. Bank and Borrower agree on financial
     covenants for each extension period at least 30 days prior to the
     expiration of the Commitment Period, and (c) the terms of such an
     extension are confirmed by an amendment to this Agreement in a form
     acceptable to U.S. Bank and Borrower.

2.2  AMENDMENT OF NOTE

     The Revolving Note is hereby amended to reflect that the maturity date of
the Revolving Loan has been modified to January 31, 2001.

ARTICLE III.   MODIFICATION OF FINANCIAL COVENANTS
--------------------------------------------------

3.1  WORKING CAPITAL

     Section 9.15 of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

          Permit Working Capital to be less than the following as of the
          last day of the applicable month:

<TABLE>
<CAPTION>
               MONTH                    MINIMUM WORKING CAPITAL
               --------------           -----------------------
<S>            <C>                           <C>
               January 2000                  $1,000,00
               February 2000                 $1,700,000
               March 2000                    $2,200,000
               April 2000                    $2,700,000
               May 2000                      $3,000,000
               June 2000                     $3,500,000
               July 2000                     $3,600,000
               August 2000                   $3,600,000
               September 2000                $3,300,000
               October 2000                  $2,700,000
               November 2000                 $2,700,000
               December 2000                 $1,900,000
</TABLE>

3.2  DEBT SERVICE COVERAGE RATIO

     Section 9.16 of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

          Permit the Debt Service Coverage Ratio to be less than the
          following, calculated on a year to date basis as of the last
          day of each month:

<TABLE>
<CAPTION>
               MONTH                    DEBT SERVICE COVERAGE
               --------------           ---------------------
<S>            <C>                      <C>
               January 2000                  1.9:1.0
               February 2000                 2.6:1.0
               March 2000                    2.6:1.0
               April 2000                    2.6:1.0
               May 2000                      2.5:1.0
               June 2000                     2.5:1.0
               July 2000                     2.4:1.0
               August 2000                   2.2:1.0
               September 2000                1.9:1.0
               October 2000                  1.6:1.0
               November 2000                 1.6:1.0
               December 2000                 1.3:1.0
</TABLE>

ARTICLE IV.  CONDITIONS PRECEDENT
---------------------------------

     The modifications set forth in this Amendment shall not be effective
unless and until the following conditions have been fulfilled to U.S. Bank's
satisfaction:

     (a)  U.S. Bank shall have received this Amendment, duly executed and
delivered by Borrower, H.S.C., Inc., Sungold Eyewear, Inc. and Private Eyes
Sunglass Corporation.

     (b)  There shall not exist any Default or Event of Default.

     (c)  All representations and warranties of Borrower contained in the
Credit Agreement or otherwise made in writing in connection therewith or
herewith shall be true and correct and in all material respects have the same
effect as though such representations and warranties had been made on and as of
the date of this Amendment.

     (d)  U.S. Bank shall have received a certified resolution of the board of
directors of Borrower and each of the undersigned guarantors in a form
acceptable to U.S. Bank.

ARTICLE V.  GENERAL PROVISIONS
------------------------------

5.1  REPRESENTATIONS AND WARRANTIES

     Borrower hereby represents and warrants to U.S. Bank that as of the date
of this Amendment and after having given effect to any waivers and
modifications to definitions set forth in this Amendment, there exists no
Default or Event of Default.  All representations and warranties of Borrower
contained in the Credit Agreement and the Loan Documents, or otherwise made in
writing in connection therewith, are true and correct as of the date of this
Amendment.  Borrower acknowledges and agrees that all of Borrower's
Indebtedness to U.S. Bank is payable without offset, defense, or counterclaim.

5.2  SECURITY

     All Loan Documents evidencing U.S. Bank's security interest in the
Collateral shall remain in full force and effect, and shall continue to secure,
without change in priority, the payment and performance of the Loans, as
amended herein, and any other Indebtedness owing from Borrower to U.S. Bank.

5.3  GUARANTIES

     The parties hereto agree that the Guaranties shall remain in full force
and effect and continue to guarantee the repayment of the Loans to U.S. Bank as
set forth in such Guaranties.

5.4  PAYMENT OF EXPENSES

     Borrower shall pay on demand all costs and expenses of U.S. Bank incurred
in connection with the preparation, negotiation, execution, and delivery of
this Amendment and the exhibits hereto, including, without limitation,
attorneys' fees incurred by U.S. Bank.

5.5  SURVIVAL OF CREDIT AGREEMENT

     The terms and conditions of the Credit Agreement and each of the other
Loan Documents shall survive until all of Borrower's obligations under the
Credit Agreement have been satisfied in full.

5.6  RELEASE OF CLAIMS

     IN CONSIDERATION FOR U.S. BANK'S AGREEMENT TO ENTER INTO THIS AMENDMENT,
BORROWER, H.S.C., INC., SUNGOLD EYEWEAR, INC., AND PRIVATE EYES SUNGLASS
CORPORATION EACH HEREBY RELEASES AND FOREVER DISCHARGES U.S. BANK, ITS
PREDECESSORS AND SUCCESSORS-IN-INTEREST, AND THEIR RESPECTIVE DIRECTORS,
OFFICERS, EMPLOYEES, REPRESENTATIVES AND AGENTS FROM ANY AND ALL CLAIMS,
DEMANDS, DAMAGES, LIABILITIES, CHARGES, ACTIONS, LOSSES, CAUSES OF ACTION,
COSTS, EXPENSES, COMPENSATION, AND SUITS OF ANY KIND, PAST, PRESENT OR FUTURE,
ARISING FROM OR ALLEGED TO ARISE FROM THEIR BUSINESS RELATIONSHIP, INCLUDING
THE RELATIONSHIP PROVIDED FOR IN THE CREDIT AGREEMENT THROUGH THE DATE OF THIS
AMENDMENT, WHETHER KNOWN OR UNKNOWN.  THIS RELEASE IS INTENDED TO BE COMPLETE
AND COMPREHENSIVE WITH RESPECT TO ALL SUCH CLAIMS.  THIS RELEASE OF CLAIMS HAS
BEEN COMPLETELY READ AND FULLY UNDERSTOOD AND VOLUNTARILY ACCEPTED FOR THE
PURPOSE OF MAKING A FULL AND FINAL COMPROMISE AND SETTLEMENT WITH RESPECT TO
ALL CLAIMS, DISPUTED OR OTHERWISE.

5.7  COUNTERPARTS

     This Amendment may be executed in one or more counterparts, each of which
shall constitute an original agreement, but all of which together shall
constitute one and the same agreement.

5.8  STATUTORY NOTICE

     ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO
FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON
LAW.

     IN WITNESS WHEREOF, U.S. Bank and Borrower have caused this Amendment to
be duly executed by their respective duly authorized signatories as of the date
first above written.

                                   GARGOYLES, INC., a Washington corporation

                                   /s/   Leo Rosenberger

                                   By:
                                        --------------------------------
                                   Title:    CEO and CFO

                                   U.S. BANK NATIONAL ASSOCIATION

                                   /s/ David C. Larsen

                                   By:
                                        --------------------------------
                                        David C. Larsen, Vice President

     Each of the undersigned Guarantors hereby (i) reaffirms its Guaranty and
its Security Agreement, (ii) agrees that its Guaranty guarantees the repayment
of the Loans, as amended herein, (iii) agrees that its respective Security
Agreement and related collateral documents secures the payment and performance
of the Secured Obligations described in such Security Agreement, (iv)
acknowledges that its obligations pursuant to its Guaranty and Security
Agreement are enforceable without defense, offset, or counterclaim, and (v)
agrees to the release of claims set forth in Section 5.6 of this Amendment.

                                   H.S.C., Inc., a Washington corporation

                                   /s/   Leo Rosenberger

                                   By:
                                        --------------------------------
                                   Title:    CEO and CFO

                                   SUNGOLD EYEWEAR, INC., a Washington
                                   corporation

                                   /s/  Leo Rosenberger

                                   By:
                                        --------------------------------
                                   Title:    CEO and CFO

                                   PRIVATE EYES SUNGLASS CORPORATION,
                                   a Washington corporation

                                   /s/  Leo Rosenberger

                                   By:
                                        --------------------------------
                                   Title:    CEO and CFO

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