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                      LEXINGTON PRECISION CORPORATE OFFICE




                         1997 MANAGEMENT CASH BONUS PLAN






























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                      LEXINGTON PRECISION CORPORATE OFFICE



                                TABLE OF CONTENTS


    SECTION
    NUMBER                                                              PAGE
    ------                                                              ----

      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




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                      LEXINGTON PRECISION CORPORATE OFFICE

                         1997 MANAGEMENT CASH BONUS PLAN


I.        PURPOSE OF PLAN

          The "1997 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, 1997.

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:

                                                                TARGET BONUS
                               POSITION                          PERCENTAGE

          Senior Vice Presidents                                   20-35%
          Vice Presidents                                          15-25%
          Junior Officers                                           5-15%

          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 PreBonus 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) he 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 1997 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 PreBonus 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>           <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 1997 MANAGEMENT CASH BONUS PLAN AND ANY BONUSES GRANTED UNDER THE
          1997 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 1997 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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