Document:

Exhibit
10.1

EMPLOYMENT
AGREEMENT

This
Employment Agreement (this “Agreement”) is entered into on December 31, 2015 (the “Effective Date”)
by and between Steven Madden, Ltd. (the “Company”) and Edward R. Rosenfeld (the “Executive”).

RECITALS

WHEREAS,
the Executive has served as the Chief Executive Officer and the Chairman of the Board of Directors of the Company since August
8, 2008, having previously served, from March 24, 2008 until August 8, 2008, as Interim Chief Executive Officer and, from May
2005 until March 24, 2008, as Executive Vice President of Strategic Planning and Finance; and

WHEREAS,
since the Executive’s existing employment agreement will expire by its terms on December 31, 2015, the Company and the Executive
desire to enter into this Agreement, which will set forth the terms and conditions upon which the Executive shall continue to
be employed by the Company and upon which the Company shall compensate the Executive from and after the Effective Date;

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth, the parties hereto have agreed,
and do hereby agree, as follows:

		1.	EMPLOYMENT;
                                         TERM

1.1               The
Company shall employ the Executive in its business, and the Executive shall continue to work for the Company, as its Chief Executive
Officer for a term, subject to earlier termination in accordance with the provisions of this Agreement (the “Term”),
commencing as of the Effective Date and terminating on December 31, 2018 (the “Expiration Date”).

1.2               Upon
the expiration of the Term or the earlier termination of the Executive’s employment with the Company for any reason whatsoever,
the Executive shall be deemed to have resigned all of his positions as an officer and director of the Company and of each and
every subsidiary thereof.

		2.	DUTIES

During the
Term, the Executive shall serve as the Company’s Chief Executive Officer and shall have such executive and managerial responsibilities
on behalf of the Company of the type and nature generally associated with his position and such further duties as shall, from
time to time, be delegated or assigned to him by the Board of Directors of the Company consistent with his position. The Executive
shall also continue to serve as Chairman of the Board of Directors of the Company.

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		3.	DEVOTION
                                         OF TIME

During the
Term, the Executive shall expend all of his working time for the Company; shall devote his best efforts, energy and skill to the
services of the Company and the promotion of its interests; and shall not take part in activities detrimental to the best interests
of the Company.

		4.	COMPENSATION

4.1               For
all services to be rendered by the Executive during the Term and in consideration of the Executive’s representations and
covenants set forth in this Agreement, the Executive shall receive from the Company the following base salary per annum (“Base
Salary”):

(i)     For
the calendar year 2016, $800,000;

(ii)    For
the calendar year 2017, $850,000; and

(iii)   For
the calendar year 2018, $900,000.

The Base Salary
payable to the Executive shall be paid at such regular weekly or semi-monthly time or times as the Company makes payment of its
regular payroll in the regular course of business.

 

4.2               During
the Term, the Executive shall receive from the Company an automobile allowance of $1,500 per month.

4.3               On
December 31, 2015, the Company shall grant to the Executive, as additional compensation, 75,000 shares of the Company’s
common stock, $0.0001 per share, subject to certain restrictions (the “2015 Restricted Common Stock”), such
grant to be made under the Company’s 2006 Stock Incentive Plan, as amended on May 25, 2012. The 2015 Restricted Common Stock
shall be subject to a Restricted Stock Award Agreement and shall vest and cease to be Restricted Common Stock in five equal installments
as follows: 15,000 shares on December 1, 2016; 15,000 shares on December 1, 2017; 15,000 shares on December 1, 2018; 15,000 shares
on December 1, 2019; and 15,000 shares on December 1, 2020.

On
February 1, 2016, the Company shall grant to the Executive, as additional compensation, 75,000 shares of the Company’s common
stock, $0.0001 per share, subject to certain restrictions (the “2016 Restricted Common Stock”), such grant
to be made under the Company’s 2006 Stock Incentive Plan, as amended on May 25, 2012. The 2016 Restricted Common Stock shall
be subject to a Restricted Stock Award Agreement and shall vest and cease to be Restricted Common Stock in five equal installments
as follows: 15,000 shares on March 5, 2017; 15,000 shares on March 5, 2018; 15,000 shares on March 5, 2019; 15,000 shares on March
5, 2020; and 15,000 shares on March 5, 2021.

4.4               During
the Term, the Executive shall be eligible for such additional compensation and bonuses as may be determined from time to time
by the Board of Directors of the Company or a committee thereof in its sole discretion.

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		5.	REIMBURSEMENT
                                         OF EXPENSES

5.1               The
Company shall pay directly, or reimburse the Executive for, all reasonable and necessary expenses and disbursements incurred by
the Executive for and on behalf of the Company in the performance of his duties during the Term.

5.2               The
Executive shall submit to the Company, not less than once in each calendar month, reports of such expenses and disbursements in
form normally used by the Company and receipts with respect thereto, and the Company’s obligations under Section. 5.1 hereof
shall be subject to compliance therewith.

		6.	VACATION,
                                         SICK PAY, AND PERSONAL DAYS

The Executive
shall be entitled to vacation, sick, and personal days off in accordance with the Company’s usual policies as set forth
in the Company’s Employee Handbook as in effect on the Effective Date, as the same may be amended from time to time.

		7.	PARTICIPATION
                                         IN EMPLOYEE BENEFIT PLANS

The Executive
shall be eligible to participate in and receive all fringe benefits available under all benefit programs normally available to
employees of the Company holding positions similar to that of the Executive, as may be in effect from time to time, including
such pension, profit sharing, stock option, life insurance, disability insurance, health insurance and dental insurance plans
and any other benefits and plans as may be implemented by the Company from time to time.

		8.	SERVICE
                                         AS OFFICER AND DIRECTOR

During the
Term, the Executive shall, if elected or appointed, serve as (a) an officer of any subsidiaries of the Company and/or entities
affiliated with the Company in existence or hereafter created or acquired and (b) a director of any such subsidiaries of the Company
and/or entities affiliated with the Company in existence or hereafter created or acquired, in each case without any additional
compensation for such services.

		9.	EARLIER
                                         TERMINATION

9.1               The
Executive’s employment hereunder shall automatically terminate upon his death; provided, however, that the Company shall
continue to pay to the Executive’s estate the Executive’s Base Salary and all other benefits as set forth herein for
a period of twelve months commencing immediately subsequent to the date of the Executive’s death.

9.2               (a)          
The Executive’s employment may be terminated (i) by the Company at any time during the Term upon written notice to the Executive
(A) in the event of the Executive’s Total Disability (as hereinafter defined), (B) for Cause (as hereinafter defined) or
(C) without Cause or (ii) by the Executive at any time during the Term upon written notice to the Company (A) for Good Reason
and (B) without Good Reason.

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                    (b)           As
used in this Agreement, “Cause” shall mean: (i) a deliberate and intentional breach by the Executive of a substantial
and material duty and responsibility under this Agreement that is not remedied, if capable of being remedied, within 30 days after
receipt of written notice by certified mail, return receipt requested, from the Company specifying such breach; (ii) the Executive’s
conviction of, or pleading guilty or nolo contendere to, any crime constituting a felony; (iii) the conviction of the Executive
of any crime involving moral turpitude; or (iv) gross negligence or willful misconduct in the performance of the Executive’s
duties or willful refusal or inability to perform such duties as may be delegated to the Executive, which are consistent with
the Executive’s position as in effect just prior to such delegation, which negligence, misconduct, refusal or inability
is not remedied by the Executive within 30 days following receipt by the Executive of written notice from the Board of Directors,
such notice to state with specificity the nature of the breach, negligence, misconduct, refusal or inability related to the Executive’s
employment with the Company.

                    (c)           For
purposes of this Agreement, “Total Disability” shall be deemed to exist if, after the Executive has failed
to perform his regular and customary duties for a period of 90 consecutive days or for any 180 days out of any 360-day period,
and before the Executive has become Rehabilitated (as hereinafter defined), a majority of the members of the Board of Directors
of the Company, exclusive of the Executive, determine that the Executive is mentally or physically incapable or unable to continue
to perform such regular and customary duties of employment. As used herein, “Rehabilitation” shall mean such
time as the Executive is willing and able and commences to devote his time and energies to the affairs of the Company to a reasonable
extent and in a similar manner to that which the Executive did prior to his disability.

                    (d)          As
used in this Agreement, “Good Reason” shall mean the occurrence of any of the following:

(i)       the
assignment to the Executive, without his consent, of any duties inconsistent in any substantial and negative respect with his
positions, duties, responsibilities and status with the Company as contemplated hereunder or diminution of such positions, duties,
responsibilities and status, if not remedied by the Company within 30 days after receipt of written notice thereof from the Executive;

(ii)       any
removal of the Executive, without his consent, from any positions or offices the Executive held as contemplated hereunder, except
in connection with the termination of the Executive’s employment by the Company pursuant to the requirements of this Agreement,
if not remedied by the Company within 30 days after receipt of written notice thereof from the Executive;

(iii)       a
reduction by the Company of the Executive’s Base Salary as in effect as contemplated hereunder, except in connection with
the termination of the Executive’s employment by the Company;

(iv)      any
termination of the Executive’s employment by the Company during the Term that is not effected in accordance with the terms
of this Agreement;

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(v)       any
material breach by the Company of the terms of this Agreement, which is not remedied by the Company within 30 days after receipt
of written notice thereof from the Executive;

(vi)       the
relocation of the Executive’s work location, without the Executive’s consent, to a place more than 75 miles from the
Company’s offices located at 52-16 Barnett Avenue, Long Island City, New York; or

(vii)      the
failure by any successor to the Company to expressly assume all obligations of the Company under this Agreement, which failure
is not remedied by the Company within 30 days after receipt of written notice thereof from the Executive.

9.3              In
the event that the Executive’s employment with the Company is terminated by the Company due to the Executive’s Total
Disability, then this Agreement shall be deemed terminated and the Company shall be released from all obligations to the Executive
with respect to this Agreement, except obligations accrued prior to such termination date and, in addition, the Company shall
pay to the Executive his Base Salary pursuant to this Agreement for a period of twelve months commencing immediately subsequent
to the date of determination of Total Disability.

9.4              In
the event that the Executive’s employment with the Company is terminated by the Company for Cause or by the resignation
of the Executive without Good Reason (i) the Company shall have no further obligations to the Executive, (ii) the Executive shall
be entitled to no further compensation or benefits from the Company, except for any pro-rata amounts due to the Executive at such
date of termination, as provided for in Section 4 and (iii) the amount to be paid to the Executive pursuant to this Section 9.4
shall constitute the sole and exclusive remedy of the Executive. The foregoing shall not be construed as a limitation of any rights
or remedies available to the Company with regard to any acts or omissions of the Executive that gave rise to the termination for
Cause.

9.5              In
the event that the Executive’s employment with the Company is terminated by the Company other than for death, Total Disability
or Cause or by the resignation of the Executive for Good Reason, then such termination shall be effective 30 days after the Executive’s
receipt of notice of termination or the Company’s receipt of notice of resignation and in either event the Executive shall
receive, as liquidated damages, an amount equal to the Executive’s Base Salary that would have been paid by the Company
pursuant to Section 4 hereof for the longer of (i) the remainder of the Term and (ii) six months, such amount to be paid to the
Executive by the Company at such regular weekly or semi-monthly time or times as the Company makes payment of its regular payroll
in the regular course of business.

9.6              (a)          In
the event that during the period commencing 90 days prior to a Change of Control (as hereinafter defined) and ending 180 days
after a Change of Control, the Executive’s employment with the Company is terminated by the Company (other than for death,
Total Disability or Cause) or by the resignation of the Executive for Good Reason, the Executive shall receive in cash, within
ten days of the date of termination or resignation of employment, an amount equal to three (3) times the average total W-2 compensation
received by the Executive pursuant to Section 4 and Section 7 of this Agreement for the preceding three-year period ending on
the last previous December 31 except that in lieu of the actual Base Salary component received during such period under Section
4.1 of this Agreement, there shall be substituted the annual Base Salary to which the Executive was entitled under Section 4.1
as of the date of termination or resignation of employment.

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In the
event that any payment (or portion thereof) to you under this Section 9.6(a) is determined to constitute an “excess parachute
payment” under Sections 280G and 4999 of the Internal Revenue Code of 1986, as amended, the following calculations shall
be made:

                                                     (i)            The
after-tax value to the Executive of the payments under Section 9.6(a) without any reduction; and

                                                     (ii)           The
after-tax value to the Executive of the payments under Paragraph 9.6(a) as reduced to the maximum amount (the “Maximum
Amount”) which may be paid to the Executive without any portion of the payments constituting an ’‘excess
parachute payment”.

If after
applying the agreed upon calculations set forth above, it is determined that the after-tax value determined under clause (ii)
above is greater than the after-tax value determined under clause (i) above, the payments to you under Section 9.6(a) shall be
reduced to the Maximum Amount.

                                     (b)           For
purposes of this Agreement, “Change of Control” shall mean:

                                                     (i)           When
any “person” as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and as used in Section 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) of
the Exchange Act, but excluding the Company or any subsidiary or any affiliate of the Company or any employee benefit plan sponsored
or maintained by the Company or any subsidiary of the Company (including any trustee of such plan acting as trustee) becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of securities of the Company representing 30%
or more of the combined voting power of the Company’s then outstanding securities; or

                                                     (ii)          When,
during any period of twelve consecutive months, the individuals who, at the beginning of such period, constitute the Board of
Directors (the “Incumbent Directors”) cease for any reason other than death to constitute at least a majority
thereof; provided, however, that a director who was not a director at the beginning of such twelve-month period shall be deemed
to have satisfied such twelve-month requirement (and be an Incumbent Director) if such director was elected by, or on the recommendation
of or with the approval of, at least a majority of the directors who then qualified as Incumbent Directors either actually (because
they were directors at the beginning of such twelve-month period) or through the operation of this proviso; or

                                                     (iii)          The
occurrence of a transaction requiring stockholder approval for the acquisition of the Company by an entity other than the Company
or a subsidiary or an affiliate of the Company through purchase of assets, or by merger, or otherwise.

9.7               Any
amount payable under this Agreement prior to the first date on which such payment is permitted under Section 409A of the Internal
Revenue Code of 1986, as amended, shall instead be paid at the earliest date on which such payment made be made in compliance
with Section 409A of the Internal Revenue Code of 1986, as amended.

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		10.	COVENANT
                                         NOT TO COMPETE

10.1              (a)           The Executive recognizes that the services to be performed by him hereunder are special, unique and extraordinary. The parties
confirm that it is reasonably necessary for the protection of the Company that the Executive agrees and, accordingly, the Executive
does hereby agree that, except as provided in Section 10.3, the Executive shall not, directly or indirectly, at any time during
the Restricted Period (as hereinafter defined) within the Restricted Area (as hereinafter defined), engage in any Competitive
Business (as hereinafter defined), either on his own behalf or as an officer, director, stockholder, partner, principal, trustee,
investor, consultant, associate, employee, owner, agent, creditor, independent contractor, co-venturer of any third party or in
any other relationship or capacity.

                     (b)          For
purposes of this Agreement, (i) “Restricted Period” shall mean (A) in the event of a termination of the Executive’s
employment by the Company for Cause or by the resignation of the Executive without Good Reason, the period of the Executive’s
actual employment hereunder plus six months after the date the Executive is no longer employed by the Company and (B) in the event
of a termination of the Executive’s employment by the Company due to the Executive’s Total Disability or without Cause
(including termination resulting from a Change of Control) or by the resignation of the Executive for Good Reason, the period
of the Executive’s actual employment hereunder; (ii) “Restricted Area” shall mean anywhere in the United
States; and (iii) “Competitive Business” shall mean the design, manufacture, sale, marketing or distribution
of (A) branded or designer footwear, apparel, accessories and other products in the categories of products sold by, or under license
from, the Company or any of its affiliates and (B) other branded products related to fashion or lifestyle; provided, however,
that the Executive’s service on the Board of Directors of Phillips-Van Heusen Corporation is not and shall not, for purposes
of this Agreement, be considered a Competitive Business.

10.2             The
Executive hereby agrees that the Executive shall not, directly or indirectly, for or on behalf of himself or any third party,
at any time during the Restricted Period (i) solicit any customers of the Company or (ii) solicit, employ or engage, or cause,
encourage or authorize, directly or indirectly, to be employed or engaged, for or on behalf of himself or any third party, any
employee or agent of the Company or any of its subsidiaries.

10.3             This
Section 10 shall not be construed to prevent the Executive from owning, directly or indirectly, in the aggregate, an amount not
exceeding one percent (1%) of the issued and outstanding voting securities of any class of any company whose voting capital stock
is traded on a national securities exchange or in the over-the-counter market.

10.4             If
any of the restrictions contained in this Section 10 shall be deemed to be unenforceable by reason of the extent, duration or
geographical scope thereof, or otherwise, then the court making such determination shall have the right to reduce such extent,
duration, geographical scope, or other provisions hereof, and in its reduced form this Section 10 shall then be enforceable in
the manner contemplated hereby.

10.5             The
provisions of this Section 10 shall survive the termination of the Executive’s employment as provided hereunder.

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		11.	DiSCLOSURE
                                         OF CONFIDENTIAL INFORMATION

The
Executive recognizes that he has had and will continue to have access to secret and confidential information regarding the Company,
including, but not limited to, its customer list, products, know-how and business plans. The Executive acknowledges that such
information is of great value to the Company, is the sole property of the Company, and has been and will be acquired by him in
confidence. In consideration of the obligations undertaken by the Company herein, the Executive will not, at any time, during
his employment hereunder and for a period of one year thereafter, reveal, divulge or make known to any person, any information
concerning the Company acquired by the Executive during the course of his employment that is treated as confidential by the Company;
provided, that such information is not otherwise in the public domain or information that the Executive could have and did learn
separate and apart from his duties as set forth herein; provided, further, that disclosure of said information would not be detrimental
to the Company.

		12.	INJUNCTIVE
                                         RELIEF; REMEDIES

12.1             The
Executive acknowledges and agrees that, in the event that the Executive shall violate or threaten to violate any of the restrictions
of Sections 10 or 11 hereof, the Company will be without an adequate remedy at law and will therefore be entitled to enforce such
restrictions by temporary or permanent injunctive or mandatory relief in any court of competent jurisdiction without the necessity
of proving damages or posting any bond or other security, and without prejudice to any other remedies that the Company may have
at law or in equity.

12.2             The
Executive agrees further that the Company shall have the following additional rights and remedies:

     (a)           to
recover all monies and other consideration derived or received by the Executive as the result of any transactions constituting
a breach of any of the provisions of Section 10.1, which the Executive hereby agrees to account for and pay over to the Company;
and

     (b)           to
recover reasonable attorneys’ fees incurred in any action or proceeding in which it seeks to enforce its rights under Sections
10 or 11.

12.3              Each
of the rights and remedies enumerated above shall be independent of the other, and shall be severally enforceable, and all of
such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under
law or in equity.

		13.	NO
                                         RESTRICTIONS

The Executive
hereby represents that neither the execution of this Agreement nor his performance hereunder will (i) violate, conflict with or
result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would
constitute a default) under the terms, conditions or provisions of any contract, agreement or other instrument or obligation to
which the Executive is a party, or by which he may be bound, or (ii) violate any order, judgment, writ, injunction or decree applicable
to the Executive. In the event of a breach hereof, in addition to the Company’s right to terminate this Agreement, the Executive
shall indemnify the Company and hold it harmless from and against any and all claims, losses, liabilities, costs and expenses
(including reasonable attorneys’ fees) incurred or suffered in connection with or as a result of the Company’s entering
into this Agreement or employing the Executive hereunder.

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		14.	ARBITRATION

14.1             Except
with regard to any other matters that are not a proper subject of arbitration, all disputes between the parties hereto concerning
the performance, breach, construction or interpretation of this Agreement or any portion thereof, or in any manner arising out
of this Agreement or the performance thereof, shall be submitted to binding arbitration, in accordance with the rules of the American
Arbitration Association. The arbitration proceeding shall take place at a mutually agreeable location in New York County, New
York or such other location as agreed to by the parties.

14.2             The
award rendered by the arbitrator shall be final, binding and conclusive, shall be specifically enforceable, and judgment may be
entered upon it in accordance with applicable law in the appropriate court in the State of New York, with no right of appeal therefrom.

14.3             Each
party shall pay its or his own expenses of arbitration, and the expenses of the arbitrator and the arbitration proceeding shall
be equally shared.

		15.	ASSIGNMENT

This Agreement,
as it relates to the employment of the Executive, is a personal contract and the rights and interests of the Executive hereunder
may not be sold, transferred, assigned, pledged or hypothecated.

		16.	NOTICES

Any
notice required or permitted to be given pursuant to this Agreement shall be in writing and shall be deemed to have been duly
given when delivered by hand or sent by certified or registered mail, return receipt requested and postage prepaid, overnight
mail or courier or telecopier, addressed, if to the Company, to the Company’s principal offices, Attn: Chief Financial Officer,
and if to the Executive, at the address of the Executive’s personal residence as maintained in the Company’s records,
or at such other address as any party shall designate by notice to the other party given in accordance with this Section 16.

		17.	GOVERNING
                                         LAW

This Agreement
shall be governed by, and construed and enforced in accordance with, the laws of the State of New York without giving effect to
such State’s conflicts of laws provisions and each of the parties hereto irrevocably consents to the jurisdiction and venue
of the federal and state courts located in the State of New York, County of New York.

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		18.	WAIVER
                                         OF BREACH; PARTIAL INVALIDITY

The waiver
by either party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent
breach. If any provision, or part thereof, of this Agreement shall be held to be invalid or unenforceable, such invalidity or
unenforceability shall attach only to such provision and not in any way affect or render invalid or unenforceable any other provisions
of this Agreement, and this Agreement shall be carried out as if such invalid or unenforceable provision, or part thereof, had
been reformed, and any court of competent jurisdiction or arbitrators, as the case may be, are authorized to so reform such invalid
or unenforceable provision, or part thereof, so that it would be valid, legal and enforceable to the fullest extent permitted
by applicable law.

		19.	ENTIRE
                                         AGREEMENT

This Agreement
constitutes the entire agreement between the parties with respect to the subject matter hereof and there are no representations,
warranties or commitments except as set forth herein. This Agreement supersedes all prior agreements, understandings, negotiations
and discussions, whether written or oral, of the parties hereto relating to the subject matter hereof. This Agreement may be amended,
and any provision hereof waived, only by a writing executed by the party sought to be charged.

		20.	COUNTERPARTS

This Agreement
may be executed in one or more counterparts, each of which shall be deemed an original, and all of which taken together shall
constitute one and the same instrument.

		21.	FACSIMILE
                                         OR ELECTRONIC MAIL SIGNATURES

Signatures
hereon which are transmitted via facsimile or electronic mail shall be deemed original signatures.

		22.	REPRESENTATION
                                         BY COUNSEL; INTERPRETATION

The Executive
acknowledges that the Executive has been represented by counsel, or has been afforded the opportunity to be represented by counsel,
in connection with this Agreement. Accordingly, any rule or law or any legal decision that would require the interpretation of
any claimed ambiguities in this Agreement against the party that drafted it has no application and is expressly waived by the
Executive. The provisions of this Agreement shall be interpreted in a reasonable manner to give effect to the intent of the parties
hereto.

		23.	HEADINGS

The headings
and captions under sections and paragraphs of this Agreement are for convenience of reference only and do not in any way modify,
interpret or construe the intent of the parties or affect any of the provisions of this Agreement.

		24.	CONSTRUCTION

Whenever
the word “including” or any variant thereof is used herein, it shall mean “including without limitation.”

[Remainder
of page intentionally left blank; signature page follows.]

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IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year above written. 

	 	STEVEN MADDEN,
    LTD.	 
	 	 	 	 
	 	By: 	/s/
    Awadhesh Sinha	 
	 	 	Awadhesh Sinha	 
	 	 	Chief Operating Officer	 
	 	 	 	 
	 		/s/
    Edward R. Rosenfeld	 
	 	 	Edward R. Rosenfeld	 

    	11ex10_1.htm

Exhibit 10.1

 

CONFIDENTIAL

 

CONFIDENTIAL TREATMENT REQUESTED:

 

INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND MARKED WITH “*******” OR OTHERWISE CLEARLY INDICATED. AN UNREDACTED VERSION OF THIS DOCUMENT HAS ALSO BEEN PROVIDED TO THE SECURITIES AND EXCHANGE COMMISSION.

 

 

AMENDMENT 3 TO

 

DIGITAL MEDIA AND TECHNOLOGY AGREEMENT

 

This third amendment to the Digital Media and Technology Agreement (“Amendment 3”) is effective as of October 20, 2015 (the “Amendment 3 Effective Date”) and is entered into by NHL Interactive CyberEnterprises, LLC, a Delaware limited liability company having its principal place of business at 1185 Avenue of the Americas, New York, NY 10036 (“NHL”) and NeuLion, Inc., a Delaware corporation having its principal place of business at 1600 Old Country Road, Plainview, NY 11803 (“NeuLion”).

 

 

WHEREAS, NHL and NeuLion entered into a Digital Media and Technology Agreement, including exhibits thereto, dated as of October 1, 2010, as amended by Amendment 1, dated as of September 24, 2013, and Amendment 2, dated as of October 30, 2013, (collectively, the “ Agreement”).

 

 

WHEREAS, NHL and NeuLion desire to further amend the Agreement.

 

 

WHEREAS, capitalized terms not defined herein shall have the meaning ascribed to them in the Agreement.

 

 

NOW THEREFORE, in consideration of mutual covenants and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties thereby agree as follows:

 

 

	
1.

	
Amendment.

	
  

	
A.

	
NHL and NeuLion hereby agree to amend and change the Term of the Agreement, as further identified in Section 12 (a) to now extend through *******.  For clarity, the covered Services shall include the 2016 NHL All-Star game and events.

	
  

	
B.

	
NHL and NeuLion hereby agree to amend and change the Agreement by deleting in its entirety the following provisions, except as specified below:

 

 

1

CONFIDENTIAL 

 

	
  

	
a.

	
Section 2 (b)(ii) – (Services – Delivery Dates)

	
  

	
b.

	
Section 2 (b)(iii) – (Services – Launch Approval); provided that the sentence, “Further, NeuLion shall not make any Service available to Users without the consent of NHL” shall remain in effect. Section 4 - (Consideration)

	
  

	
c.

	
Section 12 (c) – (Termination for Change of Control)

	
  

	
d.

	
Section 12 (d) – (Termination for Convenience)

	
  

	
e.

	
Section 12 (f) – (Post Termination Support)

 

 

	
  

	
C.

	
NHL and NeuLion hereby agree to amend and change the Agreement as follows:

	
  

	
a.

	
Section 2 (d) – (Regular Meetings and Updates)

	
  

	
i.

	
Delete paragraph in its entirety, and replace with:

“Meetings and Updates.  NHL and NeuLion shall maintain communications as needed, including, without limitation, in order to prioritize tasks, discuss changes and scheduling, identify problems and resolutions, and otherwise coordinate and cooperate in connection with development and implementation of the Services.  NeuLion shall promptly disclose to NHL any material difficulties or delays that it experiences in connection with the development or operation of the Services.

 

 

	
  

	
b.

	
Section 2 (g) – (Services – Technical Operations Center)

	
  

	
i.

	
Add the following to the end of the Section:

“Notwithstanding the foregoing, the Parties acknowledge that a separate TOC operated by ******* shall control and manage all video and data feeds from the NHL arenas and the NHL MPLS network.”

	
  

	
c.

	
Section 3 (c) – (Security, Privacy – Security of Personal Information)

	
  

	
i.

	
Add the following to the end of the Section:

	
  

	
1.

	
“The Parties agree and acknowledge that during the 2015-2016 NHL season, NHL has not provided NeuLion with access to collect any Personal Information.”

	
  

	
2.

	
“At such time as Personal Information held or controlled by NeuLion is no longer required to perform the Migration or Post-Migration Services, or at any time upon request of NHL, NeuLion shall as soon as reasonably practicable, but in no event, later than ten (10) days after such request, destroy or, at NHL’s election, return all Personal Information, including, without limitation, all originals and copies in any medium, and any materials derived from or incorporating such Personal Information at any time.  Upon request by NHL, Company shall send NHL a written certification acknowledging that all Personal Information has been returned or destroyed pursuant to the foregoing obligation.”

 

 

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CONFIDENTIAL 

 

	
  

	
d.

	
Section 8 (a) – (Representations, Warranties, and Covenants – General)

	
  

	
i.

	
Delete 8(a)(ii) in its entirety, and replace it with the following:

“the functionality of the Services will not, except as requested by NHL, be decreased during the Term of the Agreement;”

	
  

	
e.

	
Section 9 (c) – (Indemnification – Waiver)

	
  

	
i.

	
Add a new Section 9 (c), such that it now reads as follows:

“Waiver.  NHL waives any claims for damages or indemnification against NeuLion in connection with any occurrence that takes place after the complete migration of a specific Service to *******.

	
  

	
f.

	
Section 10 – (Survival)

	
  

	
i.

	
Delete Section 10 in its entirety and replace it with the following:

“The provisions of Section 3(c)(i)(2), 3(e), 3(f), 7, 9, 13 to 18, Exhibit B and Sections 1(C)(c)(1)(ii), 1(C)(h)(ii)(1)(a), 1(C)(h)(ii)(5), 3, and 4 of Amendment 3 shall survive the termination of this Agreement.”

	
  

	
g.

	
Section 12 (e) – (Transfer of Applications)

	
  

	
i.

	
Change “September 30, 2015” to “prior to the conclusion of the Term as amended in Section 1(A) of Amendment 3”.

	
  

	
h.

	
Section 13 – (Confidentiality)

	
  

	
i.

	
Add the following to the end of Section 13(a):

“For the avoidance of doubt, ******* shall not be permitted access to any NeuLion Confidential Information, unless such access has been approved in writing by NeuLion’s Executive Vice Chairman.”

	
  

	
ii.

	
Add the following to the end of Section 13(b):

“Notwithstanding the foregoing sentence, the Parties agree that NeuLion may issue a release concerning the signing of this Amendment 3, subject to NHL’s reasonable approval of the content of such release.

	
  

	
i.

	
Exhibit A – (Services Description)

	
  

	
i.

	
NHL and NeuLion hereby agree to amend and change Exhibit A by deleting in its entirety the following provisions:

 

 

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CONFIDENTIAL

 

	
  

	
1.

	
Section I (B)(2) – (NeuLion Services – Future Infrastructure Development)Section II (A)(2) – (Feed Acquisition- Live Game Home and Away Back-Haul Video Feeds)

	
  

	
2.

	
Section III (A) – (Customer Support – Registration Interface and Subscriber Control)

	
  

	
3.

	
Section III (B) – (Customer Support – Payment Processing)

	
  

	
4.

	
Section III (C)(10) – (Retention Program)

	
  

	
5.

	
Section VII (B) – (Technical Operations Center)

	
  

	
6.

	
Section VIII (B) – (Specific Product Development)

	
  

	
ii.

	
NHL and NeuLion hereby agree to amend and change Exhibit A as follows:

	
  

	
1.

	
Section I (B)(3) – (NeuLion Services – Infrastructure Management)

	
  

	
a.

	
Replace current text with, “NeuLion shall from the TOC or another facility to which the NHL agrees, manage and ensure the ongoing functionality of the equipment and infrastructure required to support (i) for the duration of the Term, LTE for hockey operations, officiating, and player safety; and (ii) through the conclusion of the 2015-16 NHL season, NHL team applications.

	
  

	
2.

	
Section III (C) – (Customer Support)

	
  

	
a.

	
 Change the sub-title from Customer Support to “Customer Technical Support”

	
  

	
3.

	
Section III (C)(1) – (Customer Support)

	
  

	
a.

	
Delete the following sentence in its entirety:

	
  

	
i.

	
“The Customer Support Services shall consist of customer services support and contact management services for NHL customers who wish to use NHL Streaming Services, and shall include the following:”

	
  

	
b.

	
Replace the above sentence with the following:

	
  

	
i.

	
“The Customer Technical Support Services shall consist of customer technical support services for NHL customers who wish to use the NHL Streaming Services, and shall include the following:”

	
  

	
4.

	
Section III (C)(2) – (Customer Support)

	
  

	
a.

	
Insert the word “Technical” between the words “Customer Support”. “NeuLion shall provide the Customer Technical Support Services in accordance with the following Hours of Operation.”

 

 

4

CONFIDENTIAL

 

	
  

	
5.

	
Section VIII (B) – (Ongoing Updates)

	
  

	
a.

	
Delete current paragraph and replace with, “NeuLion shall continue to enhance the capabilities of team applications to conform with then-current industry standards through the conclusion of the 2015-2016 NHL season.”

	
  

	
6.

	
Section IX (1)(a)  – Toronto Hockey Operations – Feeds to NHL Hockey Operations

	
  

	
a.

	
Delete the first sentence in its entirety and replace it with the following:

“NeuLion shall supply to NHL for each Arena, in the manner reasonably requested by NHL, each of the feeds described in Section II (A)(4).”

	
  

	
j.

	
Exhibit B – (NeuLion Service Fees)

	
  

	
i.

	
NHL and NeuLion hereby agree to amend and change Exhibit B and Amendment 2 by deleting Exhibit B and Amendments 1 and 2 in their entirety and replacing it with the following:

	
  

	
1.

	
In consideration for the Services provided to NHL pursuant to this Amendment 3, NHL shall pay NeuLion $15 million, to be paid as follows upon receipt of invoice from NeuLion, provided that NHL may deduct the amount of $*******owed by NeuLion to NHL for reimbursement of Covington & Burling LLP attorneys’ fees from the ******* payment:

	
  

	
a.

	
$******* million on or before *******

	
  

	
b.

	
$******* million on or before *******

	
  

	
c.

	
$******* million on or before *******

	
  

	
d.

	
$******* million on or before *******

	
  

	
e.

	
$******* million on or before *******

	
  

	
f.

	
$******* million on or before *******

	
  

	
g.

	
$******* million on or before *******

	
  

	
h.

	
$******* million on or before *******

	 	
2. 

	
In consideration for the Services provided to NHL forsupporting team applications from ******* to *******, NHL shall pay NeuLion the following:

	
  

	
a

	
a fixed fee of $******* for operations and support for ******* through *******.

	 	
b.

	
a variable monthly streaming fee based on actual usage. The per GB streaming fee will be the same as in *******.

 

 

5

CONFIDENTIAL

 

	 	
3.

	
In consideration for supporting the LTE Service provided to NHL for the period ******* through ******* and, at NHL’s option, ******* through *******, NHL shall pay NeuLion the following:

 

	
  

	
a.

	
$******* per game (with 2 feeds: home and away)

	
  

	
b.

	
$******* per game feed (national games with only 1 program feed)

	
  

	
c.

	
NeuLion will invoice NHL on a monthly basis for such fees

	
  

	
d.

	
NHL shall notify NeuLion with respect to the option year no later than *******.

 

	
  

	
k.

	
Exhibit C – Service Level Agreement

	
  

	
i.

	
NHL and NeuLion hereby agree to amend and change Exhibit C as follows:

	
  

	
1.

	
Section 5 – Remedies

	
  

	
a.

	
Remove the last sentence in Section 5 in its entirety and replace it with the following:

“In addition, in the event that NHL issues refunds to Service end users as a result of Service-related issues occurring on any given day during the Term, then for each such day, the Parties shall work together in good faith to determine whether such issues were the result of Outages (i.e. not Permitted Downtime), and in such cases NeuLion shall reimburse NHL for any such refunds issued, up to a maximum of $******* divided by the number of days in the month where the applicable Outages occurred.”

 

 

	
  

	
l.

	
NHL agrees to ensure that an ******* operated NHL TOC will provide the following to NeuLion (in connection with the Services and the Migration Services, as hereinafter defined):

	
  

	
1.

	
Full access to both home and away program feeds from the MPLS network

	
  

	
2.

	
Full access to all 4 goal cam feeds (in-net and overhead pair) from the MPLS network via the NeuLion encoders in each arena

	
  

	
3.

	
Full access to all multiple camera angle feeds produced by Rogers

 

 

6

CONFIDENTIAL

 

	
  

	
4.

	
Full access to any other feed requested by Rogers or the NHL in fulfillment of ongoing Services provided by NeuLion

	 	
5. 

	
Remote access to Toronto Hockey Ops for:

a.           Review system game assignment automation

b.           NeuLion operator access to NeuLion encoders

c.           NeuLion operator access to NeuLion review system

	
  

	
6.

	
Remote access to every arena for NeuLion operator access to NeuLion encoders

	
  

	
7.

	
Continued use of NHL supplied encoders and receiver/decoders for access to MPLS network feeds and RSN/Network broadcast satellite feeds

	
  

	
8.

	
Continued connectivity to NHL’s MPLS network via the current 1 Gigabit Ethernet handoffs currently supplied by the NHL to NeuLion network switches in 111 8th Avenue, NYC and 1600 Old Country Road, Plainview

	 	
9. 

	
TOC support SLA, contact and escalation procedures

	
  

	
10.

	
NHL MPLS network support SLA, contact and escalation procedures

 

	
  

	
m.

	
NHL support obligations, service levels, contacts and escalation procedures as it applies to both TOC Services and NHL MPLS network connectivity (in connection with the Services and the Migration Services, as hereinafter defined) should be further defined as follows:

 

	
  

	
1.

	
Provide pre- to post-game telephone support through which NeuLion can report problems, request status, and generally coordinate its continued access to both the TOC and MPLS network services described above

	
  

	
2.

	
Provide NeuLion with a daily report on open NeuLion requests submitted via the telephone process provided above

	
  

	
3.

	
As per Section 4, Exhibit C of the Agreement, NHL will use its best efforts to respond to and resolve NeuLion service issues in accordance with the priority, response times, updates, and fix plan response times provided in the Agreement.

	
  

	
4.

	
Provide service issue escalation support by designated NHL management personnel.

	
  

	
5.

	
In order for NeuLion to provide the NHL with the level of service delivered during *******, NeuLion must be provided with the following service availability:

	
  

	
a.

	
Access to all Services shall be available 99.95% of the time during live events in each consecutive 30 day period

	
  

	
b.

	
Access to all Services shall be available 99.9% of the time during non-live event periods covering each consecutive 30 day period

 

 

7

CONFIDENTIAL

 

	
  

	
2.

	
Migration.

	
  

	
A.

	
NeuLion shall additionally provide certain migration services to the NHL, for the period ******* through *******, (the “Migration Services”), as well as post migration services (the “Post-Migration Services”), all as set forth in Exhibit X hereto.  Any other Services, Migration Services, or Post-Migration Services required after *******, or any additional services not previously contemplated herein, shall be subject to a separate written agreement between the Parties.

 

	
  

	
3.

	
Team Applications.

	
  

	
A.

	
For the period from ******* to *******, NeuLion shall continue to provide the same Services as in the ******* for the NHL teams, including, without limitation:

	
  

	
·

	
Support and maintenance of team apps on mobile and tablet device for 20 teams

	
  

	
·

	
Provide integration to ******* produced game highlight videos, other team produced ancillary video programming and video channels for delivery in team apps

 

	
  

	
4.

	
Consulting.

	
  

	
A.

	
NeuLion shall provide consulting services to NHL for the period October 1, 2015 through September 30, 2020.  Such consulting services shall be provided through NeuLion’s office of the Chairman to NHL’s Commissioner and/or NHL’s designated employee appointee, on domestic and international digital and technology initiatives.

 

Except as set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect.

 

This Amendment 3 shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York without regard to its choice of law rules.  This Amendment 3 may be executed in counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each Party and delivered to the other Party.

 

 

IN WITNESS WHEREOF, the Parties have executed this Amendment.

 

	NHL Interactive CyberEnterprises, LLC	 	NeuLion, Inc.	 
	 	 	 	 
	 	 	 	 
	By:	/s/ David M. Proper 	 	By:	/s/ Roy E. Reichbach 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Name:	David M. Proper 	 	Name:	Roy E. Reichbach 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Title:	EVP	 	Title:	Secretary 	 

 

 

8

CONFIDENTIAL

 

EXHIBIT X

 

Migration and Post-Migration Services Description

 

*******

 

 

9

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