Exhibit 10.1

                               STEVEN MADDEN, LTD.
                              52-16 BARNETT AVENUE
                           LONG ISLAND CITY, NY 11104
                                T (718)-308-2215
                                F (718)-308-4075

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                                                          Friday, March 11, 2005

Mr. Robert Schmertz


Dear Robert;

Below are the terms of your employment with Steven Madden, Ltd.:

1.       Term of Employment: 07/01/05 to 06/30/07
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         Your position with the company is President of Steve Madden,  Wholesale
         Womens  Division and Brand  Manager for the Steven  Madden brand or any
         other position assigned by the Chief Executive Officer.

2.       Salary: $476,438.00 effective 7/1/05 thru 6/30/06
                 $500,260.00 effective 7/1/06 thru 6/30/07

         Less such  deductions as shall be required to be withheld by applicable
         law and regulations.

3.       Covenant Not to Compete:  Executive  recognizes that the services to be
         performed by him hereunder are special and unique.  In consideration of
         the  compensation  granted  herein,  the Executive  agrees that, in the
         event he  either  terminates  his  employment  of his own  accord or is
         terminated  by the Company for cause  prior to the  expiration  of this
         agreement,  for a period of 12 months  following such  termination,  he
         shall not engage in or accept employment with any competitive  business
         for his special and unique services.

4.       Expenses:  All  reasonable  and  necessary  business  related  expenses
         including a cellular phone are to be paid by Employer.

5.       Automobile:  Employer shall pay to Employee  $500.00 per month as a car
         allowance.
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6.       Vacations:  Vacations,  sick days and personal days in accordance  with
         executive policy.

7.       Signing Bonus:  Executive shall receive a signing bonus of $50,000 upon
         the execution of this Agreement.

8.       Bonus: The Corporation  shall pay Employee a discretionary  bonus in an
         amount determined solely by the Corporation's Board of Directors.

9.       Termination Upon Change of Control:  If a Change of Control (as defined
         below)  occurs  the  Employee  shall have the right to  terminate  this
         Agreement.  At least ten (10) days prior to any such proposed Change of
         Control,  the Company  shall  notify the  Employee of its  intention to
         affect such Change of Control,  and the Employee  shall  hereupon  have
         five (5) days from the actual  receipt of such notice to give notice of
         his  intention  to  terminate  this  Agreement.  If Employee  elects to
         terminate  this  Agreement as aforesaid,  in the event of the Change in
         Control,  Employee will receive 3 X's last years compensation capped at
         maximum allowed under Section 4999 of the Code.


                                            Steve Madden, Ltd.

/s/ ROBERT SCHMERTZ                         /s/ JAMIESON A. KARSON
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Robert Schmertz                             By:  Jamieson A. Karson, CEO