SEVERANCE AGREEMENT




     THIS AGREEMENT  made and entered into as of the 12th day of December,  1997
by and between  SWISS ARMY BRANDS,  INC., a Delaware  corporation,  (hereinafter
referred  to as "SABI" or "the  Company"),  and  LESLIE  H.  GREEN  (hereinafter
referred to as "Ms. Green").

     WHEREAS, Ms. Green has been Vice President of SABI since December, 1995;

     WHEREAS,  Ms. Green has resigned  from the office of Vice  President of the
Company and as an employee of the Company effective December 12, 1997;

     WHEREAS,  the Company  desires to provide Ms. Green with certain  severance
benefits; and

     WHEREAS,  Ms.  Green  desires to accept such  benefits  under the terms and
conditions contained herein.

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
and agreements contained herein, the parties hereto agree as follows:

     1.  SEVERANCE  BENEFITS.  The Company  agrees to provide Ms. Green with the
following severance benefits, which benefits Ms. Green acknowledges are over and
above those to which she would normally be entitled:

     (a) Ms. Green or, in the event of her death, her estate shall be paid, as a
severance  payment,  at the rate of $185,500  per annum,  payable on a bi-weekly
basis  through  December  31,  1997 and shall  receive a lump sum payment in the
amount of $278,250 on the later to occur of January 9, 1998 or the expiration of
the waiting  periods  set forth in section 14 hereof.  All  payments  under this
Agreement shall be subject to applicable withholding.

     (b) The Company shall pay to the Company's insurance carrier, the amount of
the premium required to be paid to keep the medical and dental insurance for the
benefit of Ms. Green and her dependents  (to the extent her  dependents  were so
covered  immediately  prior to the date hereof)  under COBRA  effective  for the
period terminating on June 30, 1999.

     (c) The Company  shall pay to Ms.  Green on a monthly  basis an  automobile
allowance of $600 per month through  December 31, 1997 and a lump sum payment in
the amount of $10,800 of the later to occur on January 9, 1998 or the expiration
of the waiting period set forth in section 14 hereof.  While payments under this
Agreement shall be subject to applicable withholding.

     (d) The  Company  shall pay for  outplacement  services,  including  phone,
office and  secretarial  services,  provided by Lee Hecht Harrison for Ms. Green
for a period of up to one year. The Company shall have no obligation to pay, and
Ms. Green shall have no right to receive,  cash or other payment in lieu of such
service nor shall Ms.  Green be  entitled to an office or phone  services at the
Company's offices.

     (e) The Company shall reimburse Ms. Green in the amount of up to $3,000 for
the purchase of a computer  and related  equipment  upon receipt of  appropriate
documentation evidencing such expenditures.

     (f) Pursuant to Stock Option Agreements (the "Option Agreements") dated May
18,  1992,  July 15, 1994,  January 26, 1995 and November 14, 1996,  the Company
granted to Ms. Green  options to purchase an aggregate of up to 40,000 shares of
the Company's common stock. The Option  Agreements  provide that Ms. Green shall
have a period of six months from the termination of her employment  hereunder to
exercise such options that have vested by the termination of her employment.
<PAGE>


     2. COVENANT NOT TO COMPETE.  (a) Ms. Green  acknowledges that in the course
of her  employment  by the Company,  she has been privy to various  economic and
trade secrets and relationships of the Company and its affiliates. Therefore, in
consideration  of this  Agreement,  Ms. Green  hereby  agrees that she will not,
directly or indirectly, except for the benefit of the Company or its affiliates:

                (i)     on behalf of herself or any other person:

     (A) solicit,  entice, persuade or induce any employee of the Company or any
affiliate, or any other person, who is under contract with or rendering services
or supplying  products to the Company or any affiliate,  (w) to terminate her or
its  employment  by,  or  contractual  relationship  with,  the  Company  or any
affiliate or (x) to refrain  from  extending or renewing the same (upon the same
or new terms) or (y) to refrain  from  rendering  services to the Company or any
affiliate,  or (z) to become employed by or to enter into contractual  relations
with persons other than the Company provided,  however, that the prohibition set
forth in this  subsection  2(a)(i)(A)(z)  shall  not apply to  solicitations  of
persons other than employees of the Company or an affiliate; or

     (B)  authorize  or  knowingly  approve  or assist in the taking of any such
actions by any person other than the Company;  provided,  however,  that nothing
herein shall prohibit Ms. Green providing employment references.

     (ii)  directly or  indirectly,  whether as employee,  consultant,  officer,
director, partner, shareholder or otherwise engage in the business of marketing,
distributing, offering for sale or selling products manufactured, distributed or
licensed by Wenger S.A. or Precise Imports Corporation or any entity directly or
indirectly  controlled,  controlling or under common control with either of them
or any successor to the business of either of them.

     (b)(i) Ms. Green  acknowledges  that she has substantial  capabilities  and
experience  in fields other than those which would be  prohibited  hereunder and
that the  restrictions  set forth  above  would not hinder her ability to earn a
livelihood.

     (ii) If any of the restrictions set forth in this Section 2 should, for any
reason whatsoever, be declared invalid by a court of competent jurisdiction, the
validity or  enforceability  of the  remainder  of such  restrictions  shall not
thereby be adversely  affected.  Ms. Green agrees that the time  limitations and
other  restrictions  in this Section 2 are reasonable and properly  required for
the adequate  protection  of the  business of the Company,  and that if any such
time  limitations  or  other  restrictions  is held  unreasonable  by a court of
competent  jurisdiction,  then she agrees and submits to the  reduction  of said
time limitation or other restrictions to such area or period as such court shall
find reasonable.

     (c) The  provisions  of this Section 2 shall  survive  termination  of this
Agreement and be effective for a period of eighteen months from the date hereof.

     3.  CONFIDENTIALITY.  Ms. Green will keep secret and will not,  without the
express written consent of the Company:

     (a) knowingly  divulge or communicate  to any third person,  or use for the
benefit of Ms.  Green or any third  person,  any trade  secrets  or  privileged,
proprietary  or  confidential  information  used or owned by the  Company or any
affiliate or disclosed to or learned by her in the course of her  employment  by
the Company including,  without  limitation,  information  concerning  products,
profitability,  the  identity  of, and  information  relating to  dealings  with
customers and suppliers; or

     (b) retain for the benefit of herself or any third  person any  document or
paper  used or  owned  by the  Company  or any  affiliate  or  coming  into  her
possession in the course of her employment by the Company or make or cause to be
made any copy, abstract, or summary thereof.

     4.  REMEDIES.  Because the services of Ms. Green  hereunder  are unique and
extraordinary and the Company does not have an adequate remedy at law to protect
its  business  from Ms.  Green's  competition  or to protect its interest in its
trade secrets, confidential information and similar commercial assets, Ms. Green
agrees that any breach or  threatened  breach of any  provision of provisions of
this Agreement relating to non-competition and confidentiality shall entitle the
Company,  in addition to any other legal or equitable  remedies available to it,
to apply to any  court of  competent  jurisdiction  to  enjoin  such  breach  or
threatened breach without the posting of any bond or any security.

<PAGE>

     5. RELEASE.  Ms. Green,  for her and for her successors  and assigns,  does
hereby fully and completely RELEASE,  ACQUIT and FOREVER DISCHARGE SABI, and its
affiliates,  subsidiaries or other related entities as well as its shareholders,
officers,  directors,  employees  or  agents,  from any and all  claims,  debts,
demands, actions, causes of action, suits, sums of money, contracts, agreements,
judgements and liabilities  whatsoever,  both in law and in equity ("claims") of
any kind and any character  that she might now have, or could have had,  whether
in  contract,   tort  or  otherwise,   including   specifically  any  claims  of
discrimination  that she may  claim in  connection  with her  employment  or the
termination  thereof but excluding  claims for the  enforcement  of Ms.  Green's
rights under this Agreement. This includes but is not limited to, claims arising
under the federal,  state or local laws prohibiting  discrimination on the basis
of one's sex, race, age,  disability,  national  origin,  color or religion,  or
claims  growing out of any legal  restrictions  on SABI's right to terminate its
employees.  This also  specifically  includes the waiver of any rights or claims
arising under the Age Discrimination in Employment Act of 1967 (29 U.S.C. 621 et
seq.).  It is also  understood  that the  execution of this  Agreement  shall be
construed as a release and covenant not to sue, that Ms. Green will not sue SABI
or any subsidiary,  affiliate, officer, director, employee or committee thereof,
or file any  claims  of any sort with any  administrative  agency  for  anything
arising out of her employment, and the terms of this Agreement supersede any and
all other agreements relating to her employment whether written or oral.

     6.  CONFIRMATION OF RESIGNATION.  Ms. Green  acknowledges and confirms that
effective  the date hereof,  she resigns from any and all  positions  held as an
officer and employee of SABI and all of SABI's subsidiaries.

     7. ADVICE OF COUNSEL.  SABI  encourages  Ms. Green to carefully  review the
terms of this Agreement  and, if she wishes,  to seek advise and counsel from an
attorney before signing this Agreement.

     8. SPLIT DOLLAR LIFE INSURANCE.  Ms. Green agrees to deliver to the Company
simultaneously  with the  execution and delivery of this  Agreement,  a duly and
validly executed Insurance Agreement and Collateral  Assignment Agreement of the
Split Dollar Life Insurance Policy paid for by SABI for the benefit of Ms. Green
in the form attached as Exhibit A hereto.

     9.  DIVISIBILITY  OF  AGREEMENT.  In the event that any term,  condition or
provision  of this  Agreement is for any reason  rendered  void,  all  remaining
terms,  conditions  and  provisions  shall  remain  and  continue  as valid  and
enforceable obligations of the parties hereto.

     10. NOTICES. Any notices or other  communications  required or permitted to
be sent  hereunder  shall be in writing  and shall be duly  given if  personally
delivered or sent  postage  pre-paid by certified  or  registered  mail,  return
receipt  requested,  or sent by  electronic  transmission  and confirmed by mail
within two business days of such transmission, as follows:

                                    (a)     If to Ms. Green:
                                            4 Pebble Beach Drive
                                            Purchase, New York  10577

                                    (b)     If to SABI:
                                            Swiss Army Brands, Inc
                                            One Research Drive
                                            Shelton, Connecticut  06484

     Either  party may change her or its  address  for the  sending of notice to
     such party by written notice to the other party sent in accordance with the
     provisions hereof.

     11.  MERGER.  This  Agreement  merges  and  supersedes  any and  all  other
agreements  between the parties  hereof  related in any way to the employment of
Ms. Green.  This  Agreement  may not be altered or amended  except by a writing,
duly executed by the party  against whom such  alteration or amendment is sought
to be enforced.

     12. GOVERNING LAW AND ARBITRATION.  (a) This Agreement shall be governed by
and  construed  in  accordance  with the laws of the state of  Connecticut  with
respect to agreements made and to be performed wholly therein.

     (b) Any dispute  between SABI and Ms. Green  arising out of this  Agreement
shall be submitted to arbitration in the City of New York in accordance with the
rules of the American  Arbitration  Association then obtaining.  The decision of
the arbitrator or arbitrators  shall be final,  conclusive,  non-appealable  and
binding upon the parties and judgment  thereunder may be entered in any court of
competent jurisdiction.
<PAGE>

     13. ASSIGNMENT. This Agreement is personal and non-assignable by Ms. Green.
It shall inure to the benefit of any  corporation or other entity with which the
Company shall merge or  consolidate  or to which the Company shall lease or sell
all or substantially all of its assets and may be assigned by the Company to any
affiliate  of the  Company  or to any  corporation  or entity  with  which  such
affiliate  shall  merge or  consolidate  or which  shall lease or acquire all or
substantially all of the assets of such affiliate.

     14.  PERIOD TO REVIEW  AND  REVOKE.  After Ms.  Green has had the chance to
review this  Agreement  and to consult  with her  attorney,  if she wishes,  she
should sign the Agreement and return it to SABI within 22 days.


     After Ms. Green has executed and delivered this  Agreement,  she shall have
seven (7) days following the date of execution  during which time she may revoke
this  agreement,  provided,  however,  that, if she elects to return an executed
copy of the  document  to us  before  the  expiration  of 22 days  from the date
hereof,  she may revoke this  Agreement at any time before the later to occur of
seven (7) days following the date of execution or 22 days after the date hereof.
If SABI does not receive a written  revocation  from Ms. Green, or her attorney,
prior to the  expiration  of the period in which she may revoke this  Agreement,
this  Agreement  will become  effective on the date after the  expiration of the
applicable revocation period.

     IN WITNESS WHEREOF,  each of the parties hereto has executed this Agreement
as of the day and year first above written.

                                                      /s/ Leslie H. Green
                                                     Leslie H. Green



                                                     SWISS ARMY BRANDS, INC.



                                                     By: /s/ J. Merrick Taggart
                                                        Title:  President
     I  acknowledge  that I have been given the  opportunity  to  consider  this
agreement for at least twenty-one (21) days, that I have been advised to discuss
this  agreement  with an attorney of my choice,  that I have  carefully read and
fully understand and agree to all of the provisions of this agreement and that I
am voluntarily entering into this agreement.

     Finally,  I also  understand  that I have  seven (7) days after I sign this
agreement (or twenty-two days after the date hereof, if later) to change my mind
and that I may revoke this  agreement by providing  written notice of revocation
to you prior to the expiration of the applicable period.



December 12, 1997                                   /s/ Leslie H. Green
Date of Execution                                    Leslie H. Green