Exhibit 10.1 August 14, 1996 Steve Wolf Chief Financial Officer 555 South Henderson Road King of Prussia, PA 19406 Dear Steve: In connection with Loan and Securities Agreement dated as of July 31, 1995 between RYKA and KPR Sports International, Inc., we hereby waive through October 15, 1996 the default with the regard to the minimum tangible net worth and leverage ratio requirements. Sincerely, /s/ Zeev Shenkman - ----------------------- Zeev Shenkman Executive Vice President KPR Sports International, Inc. K.P.R. SPORTS INTERNATIONAL, INC. - ---------------------------------------------------------------------------------------------------------------- [ ]Corporate Office [ ]European Office [ ]West Coast Office 555 South Henderson Road, Jan de Rooystraat 49, 1221 East Dyer Road, Suite 215, King of Prussia, PA 19046 5171 DR Kaatsheuvel, Holland Santa Ana, CA 92705 Phone 610-768-0900 800-352-3331 Phone: 31-416-277260 Fax: 31-416-275175 Phone: 714-556-6577 Fax: 714-556-6540 Fax: 610-768-0753