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                                                                   Exhibit 10.7










                                      
                     LEXINGTON PRECISION CORPORATE OFFICE

                       1996 MANAGEMENT CASH BONUS PLAN
                                      


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                                  LEXINGTON PRECISION CORPORATE OFFICE

                                            TABLE OF CONTENTS

<TABLE>
<CAPTION>
                  SECTION
                  NUMBER                                               PAGE
                  --------                                             ----
                  <S>                                                 <C>
                    I.     PURPOSE OF PLAN                              1

                    II.    ELIGIBILITY                                  1

                    III.   PLAN YEAR                                    1

                    IV.    GROUPING OF PARTICIPANTS                     1

                    V.     SETTING OF TARGET BONUS PERCENTAGES          1

                    VI.    AUTHORIZATION FORM                           2

                    VII.   NOTIFICATION OF EMPLOYEES                    2

                    VIII.  BASIS FOR BONUS PAYMENTS                     3

                    IX.    SETTING OF GOALS                             3

                    X.     CALCULATING THE BONUS POOL                   4

                    XI.    TIMING OF BONUS PAYMENTS                     5

                    XII.   OTHER                                        5

</TABLE>


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                      LEXINGTON PRECISION CORPORATE OFFICE

                         1996 MANAGEMENT CASH BONUS PLAN

I.      PURPOSE OF PLAN

        The "1996 Management Cash Bonus Plan" (the "Plan") is designed to
        provide meaningful incentives for officers and key employees of the
        Corporate Office (the "Bonus Group") of Lexington Precision Corporation
        (the "Company") to increase profitability while efficiently managing the
        Company's assets.

II.     ELIGIBILITY

        A "Participant" shall mean an individual who meets both of the following
        criteria:

             (1)  The individual has been selected to participate in the Plan by
                  the Compensation Committee of the Board of Directors of
                  Lexington Precision Corporation upon recommendation of the
                  president of Lexington Precision Corporation; and

             (2)  The individual is a full-time, salaried, exempt employee of
                  the Company on the last day of the plan year.

        Participants who retire during the plan year and are aged 62 or older on
        the date of retirement and estates of Participants who die during the
        plan year will be paid bonuses (if and to the extent earned) at the same
        time that all other Participants receive their bonuses after the end of
        the plan year.

III.    PLAN YEAR

        The plan year shall mean the year ending December 31, 1996.

IV.     GROUPING OF PARTICIPANTS

        The Participants in the Bonus Group, will be designated at the beginning
        of the plan year by the Compensation Committee of the Board of Directors
        of Lexington Precision Corporation upon recommendation of the president
        of Lexington Precision Corporation.

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V.      SETTING OF TARGET BONUS PERCENTAGES

        Subject to the adjustment for Personal Performance (defined in Section
        XI below), the "Target Bonus" for each Participant shall mean the amount
        calculated by multiplying the Participant's aggregate base-salary
        received during the year by a "Target Bonus Percentage" which will be
        set at the beginning of the plan year by the Compensation Committee of
        the Board of Directors of Lexington Precision Corporation upon
        recommendation of the president of Lexington Precision Corporation. The
        "Group Target Bonus" shall mean the aggregate of the Target Bonuses of
        all Participants in a Bonus Group. The Target Bonus Percentage for the
        president of the Company will be set by the president of Lexington
        Precision Corporation.

        A Participant's bonus will always be based on the aggregate base-salary
        received during the year, not on the base-salary level at any particular
        point during the year (i.e., when calculating bonuses for Participants
        who received salary increases during the year, for Participants who are
        hired during the year or for Participants who retire or die during the
        year).

        As a general guideline, the Target Bonus Percentage levels which would
        typically be assigned to various categories of employees in the Bonus
        Group are set forth below:

<TABLE>
<CAPTION>
                                                            TARGET BONUS
                           POSITION                          PERCENTAGE
                           --------                          ----------
                     <S>                                     <C>  
                     Senior Vice Presidents                    20-35%

                     Vice Presidents                           15-25%

                     Junior Officers                            5-15%
</TABLE>

        If a Participant moves to a higher management level during the year,
        such Participant's Target Bonus Percentage will be reset at an
        appropriate higher level determined by the Compensation Committee of the
        Board of Directors of Lexington Precision Corporation upon
        recommendation of the president of Lexington Precision Corporation, as
        if the Target Bonus Percentage had been at the higher level for the
        entire year. If a Participant moves to a lower management level during
        the year, such Participant's Target Bonus Percentage will be reset at an
        appropriate lower level determined by the Compensation Committee of the
        Board of Directors of Lexington Precision Corporation upon
        recommendation of the president of Lexington Precision Corporation, as
        if the Target Bonus Percentage had been at the lower level for the
        entire year.

VI.     AUTHORIZATION FORM

        Attached hereto as Exhibit A is the "Authorization Form" which shall be
        used by the Compensation Committee of the Board of Directors of
        Lexington Precision Corporation upon recommendation of the president of
        Lexington

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        Precision Corporation at the beginning of each plan year when
        designating Participants, Target Bonus Percentages and the Bonus Group's
        Target Pre-Bonus Operating Profit (defined in Section IX below).

VII.    NOTIFICATION OF EMPLOYEES

        Attached hereto as Exhibit B is the form of memorandum which shall be
        used at the beginning of each plan year to inform employees of their
        participation in the Plan and their Target Bonus Percentages and Target
        Bonuses.

VIII.   BASIS FOR BONUS PAYMENTS

        After the end of the plan year, when financial results for the year are
        available, a calculation will be made to determine the bonus that will
        be paid to each Participant.

        The percentage of Target Bonus earned by each Participant will depend on
        the following:

             (1)  how well the Bonus Group performed relative to its
                  Target Pre-Bonus Operating Profit; and

             (2)  the Participant's Personal Performance (discussed
                  below).

        All bonuses will be subject to the review and approval of the Board of
        Directors of Lexington Precision Corporation.

IX.     SETTING OF GOALS

        "Operating Profit" means profit before interest, income taxes and other
        non-operating expenses in accordance with the Company's standard
        accounting procedures.

        "Pre-Bonus Operating Profit" means operating profit before deducting any
        expenses for bonuses relating to the 1996 Management Cash Bonus Plan.

        The "Target Pre-Bonus Operating Profit" for the Bonus Group will be set
        at the beginning of the year by the Compensation Committee of the Board
        of Directors of Lexington Precision Corporation upon recommendation of
        the president of Lexington Precision Corporation. The Target Pre-Bonus
        Operating Profit will equal ONE of the following:

             (1)  the Bonus Group's "Budgeted Pre-Bonus Operating
                  Profit" as reflected in the annual budget for the
                  Company;

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             (2)  an amount higher than the Company's Budgeted
                  Pre-Bonus Operating Profit if the Budgeted Pre-
                  Bonus Operating Profit is below reasonable
                  performance-standards (taking into account,
                  among other things, industry performance
                  standards, historical performance standards, and
                  the amount of capital invested in the Company); or

             (3)  an amount lower than the Company's Budgeted
                  Pre-Bonus Operating Profit if the Budgeted Pre-
                  Bonus Operating Profit is above reasonable
                  performance-standards (taking into account,
                  among other things, industry performance
                  standards, historical performance standards, and
                  the amount of capital invested in the Company).

        The "reasonable performance standards" discussed above will be
        determined in the sole discretion of the Compensation Committee of the
        Board of Directors of Lexington Precision Corporation upon
        recommendation by the president of Lexington Precision Corporation.

        The Target Pre-Bonus Operating Profit will not be revised during the
        plan year, except in cases where an acquisition or divestiture of a
        business completed during the plan year materially affects reported
        operating results during that plan year.

X.      CALCULATING THE BONUS POOL

        To calculate the bonus for each of the Participants in the Bonus Group,
        it is first necessary to calculate the "Group Bonus Pool".

        The Group Bonus Pool will be calculated by multiplying the Group Target
        Bonus by the percentage in the column on the right below, opposite the
        percentage of the Target Pre-Bonus Operating Profit which was attained
        by that Bonus Group.

<TABLE>
<CAPTION>
                           PERCENTAGE                    PERCENTAGE OF TARGET
                            OF TARGET                        BONUS EARNED
                            PRE-BONUS                   (BEFORE ADJUSTING FOR
                    OPERATING PROFIT ATTAINED            PERSONAL PERFORMANCE)
                    -------------------------            ---------------------
                      <S>                                <C>                         
                            less than 85.00%                     None
                          85.00  -    89.99%                      25%
                          90.00  -    94.99%                      50
                          95.00  -    99.99%                      75
                         100.00  -   109.99%   (target)          100
                         110.00  -   119.99%                     125
                         120.00  -   129.99%                     150
                         130.00  -   139.99%                     175
                         140.00% or more                         200 (maximum)
</TABLE>

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        The percentage of Target Bonus earned, before giving effect to
        adjustments for Personal Performance, must be in the increments shown on
        the above chart. For example, if the Bonus Group attained 108% of the
        Target Pre-Bonus Operating Profit, the percentage used for each
        Participant in the Bonus Group would be 100% (not 120% or 125%). The
        percentages of Target Bonus earned are "stepped," not linear. No bonuses
        will be earned by any Participants in the Bonus Group if less than 85%
        of the Target Pre-Bonus Operating Profit is attained. The Group Bonus
        Pool cannot exceed 200% of the Group Target Bonus.

XI.     TIMING OF BONUS PAYMENTS

        All bonus payments will be made as soon as practicable after the end of
        the plan year. Before any bonus payments can be made the following two
        requirements must be met:

             (1)  necessary accounting and audit work must be
                  completed so that all bonus calculations can be
                  made; and

             (2)  the bonus must be approved by a vote of the Board of Directors
                  of Lexington Precision Corporation.

        It is anticipated that bonuses will be paid approximately 45-75 days
        after the end of the plan year.

XII.    OTHER

        Bonuses will be subject to income and employment tax withholding to the
        extent required by applicable law.

        Bonuses and the right to receive bonuses cannot be pledged, assigned or
        alienated, voluntarily or involuntarily, by any Participant.

        THE 1996 MANAGEMENT CASH BONUS PLAN AND ANY BONUSES GRANTED UNDER THE
        1996 MANAGEMENT CASH BONUS PLAN SHALL NOT CONFER UPON ANY PARTICIPANT
        ANY RIGHT WITH RESPECT TO THE CONTINUANCE OF EMPLOYMENT BY THE COMPANY,
        NOR SHALL THEY INTERFERE IN ANY WAY WITH THE RIGHT OF THE COMPANY TO
        TERMINATE A PARTICIPANT'S EMPLOYMENT AT ANY TIME.

        THE 1996 MANAGEMENT CASH BONUS PLAN MAY BE REVISED, MODIFIED OR
        TERMINATED IN ANY WAY, FOR ANY REASON AND AT ANY TIME AT THE SOLE
        DISCRETION OF THE BOARD OF DIRECTORS OF LEXINGTON PRECISION CORPORATION
        BY VOTE OF A MAJORITY OF THE BOARD AT ANY REGULAR OR SPECIAL MEETING OF
        THE BOARD.

        Revised and approved by the Board of Directors of Lexington Precision
        Corporation on October 18, 1994

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