13

                              EMPLOYMENT AGREEMENT

     EMPLOYMENT  AGREEMENT  (this  "Agreement"),   dated  March  24,  1997  (the
"Commencement Date"), between SALANT CORPORATION,  a Delaware corporation,  (the
"Corporation")  and Jerald S. Politzer (the "Employee").  WHEREAS,  the Employee
and the  Corporation  desire to enter into an  agreement of  employment  between
them.  NOW  THEREFORE,  in  consideration  of the  respective  premises,  mutual
covenants  and  agreements  of the parties  hereto,  and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:  Section 1. Nature of Employee's Services . The
Corporation  agrees to employ the Employee and the Employee  agrees to serve the
Corporation  as the  senior  executive  officer of the  Corporation,  having the
title, Chief Executive Officer of the Corporation. On the Commencement Date, the
Employee  shall be elected to the Board of  Directors  of the  Corporation  (the
"Board  of  Directors")  for a three  year  term.  Upon the  termination  of his
employment under this Agreement, the Employee agrees to resign from the Board of
Directors.  The  Employee  shall  perform  such  services and duties as shall be
assigned to him or  delegated to him from time to time by the Board of Directors
or the  Executive  Committee  of the Board of  Directors  during the  Employment
Period (as hereinafter  defined)  provided,  however,  that such duties shall be
consistent with those  customarily  performed by the senior executive officer of
other  entities  doing  business in the  industries in which the  Corporation is
primarily  engaged.  The  Employee's  duties shall include,  without  additional
compensation,  the performance of similar  services for any  subsidiaries of the
Corporation.  The Employee agrees that, except as otherwise  provided herein, he
shall devote substantially all of his business time, attention and energy to the
business of the Corporation and its  subsidiaries in the advancement of the best
interests of the Corporation and its subsidiaries. The Employee will perform his
duties  hereunder  principally  in the New York  metropolitan  area.  During the
Employment Period it shall not be a violation of this Agreement for the Employee
to (a) serve on corporate, civic or charitable boards or committees or otherwise
engage in charitable  activities and community  affairs,  (b) deliver  lectures,
fulfill  speaking  engagements  or teach at  educational  institutions,  and (c)
manage  personal  investments,  so  long as such  activities  do not  materially
interfere with the performance of Employee's  responsibilities as an employee of
the Corporation in accordance with this Agreement. Section 2. Term of Employment
 . The term of Employee's employment under this Agreement shall commence on April
1, 1997 and end on March 31,  2000 (the  "Employment  Period").  The  Employment
Period  shall be  automatically  renewed  for  successive  one-year  terms  (the
"Renewal  Terms") on the same terms set forth herein  (except salary which shall
be at the annual rate for the third  Employment  Year)  unless at least 180 days
prior to the expiration of the original  Employment  Period or any Renewal Term,
either  Party  notifies  the other Party in writing that he or it is electing to
terminate  this  Agreement  at the  expiration  of the then  current  Employment
Period.  "Employment  Period"  shall mean the original  Employment  Period (i.e.
April 1, 1997 to March 31, 2000) and all Renewal  Terms.  In the event that this
Agreement is not renewed  because the  Corporation  has given the 180-day notice
prescribed  in the  preceding  paragraph  on or  before  the  expiration  of the
original  Employment  Period or any  Renewal  Term,  such  non-renewal  shall be
treated as a termination  following non-renewal pursuant to Section 6 (f) below.
Section 3. Annual  Compensation . Subject to the terms hereof,  the  Corporation
agrees to pay to the Employee,  subject to all applicable laws and requirements,
including,  without  limitation,  laws with respect to  withholding  of federal,
state or local taxes, the annual  compensation  set forth below. (a) Salary.  As
annual  salary for the services to be rendered by the  Employee the  Corporation
shall pay a salary at the rate of $650,000  per annum for the first twelve month
period of the Employment Period,  $700,000 for the second twelve month period of
the  Employment  Period and  $750,000  for the third  twelve month period of the
Employment Period (each such twelve month period being hereafter  referred to as
an  "Employment  Year")  payable  in equal  bi-weekly  installments  during  the
Employment Period (the "Salary"). (b) Incentive Compensation.  Employee shall be
entitled  to receive a bonus  (the  "Bonus")  in  accordance  with the  schedule
annexed hereto as Exhibit 1 comparing the Corporation's  performance during each
fiscal year which ends within a particular Employment Year, to operating targets
for each such fiscal year.  Each bonus shall be paid by the  Corporation  to the
Employee  within ninety (90) days after the end of the fiscal year to which such
bonus relates.  For the 1997 Fiscal Year,  and no other Fiscal Year  thereafter,
the Employee  shall receive as a minimum bonus the amount  provided in paragraph
(a) of Exhibit 1. If the  employment  of the  Employee is  terminated  or if the
Employment  Period terminates on a day other than the last day of a fiscal year,
the bonus amount payable with respect to such fiscal year shall be the amount to
which the Employee would have been entitled had his employment continued for all
of that fiscal  year,  prorated by the  proportion  that the number of months of
employment  completed  by the  Employee  during that fiscal year bears to twelve
(12).  Notwithstanding anything contained herein to the contrary, no bonus shall
be payable to the Employee (i) if the Employment  Period is terminated  pursuant
to Section 6(c) or (ii) if the Employee  terminates the Employment  Period other
than pursuant to Section 6(e).  Section 4. Employee Benefit Plans . The Employee
shall,  during the Employment  Period, be eligible to participate in and receive
benefits  under and in  accordance  with the  provisions  of any  pension  plan,
welfare plan or other similar plan or policy of the  Corporation  maintained for
the  benefit of the  Corporation's  senior  level  executives  or its  employees
generally (together,  the "Benefit Plans"). In the event any new Benefit Plan is
established  which is in addition  to, and not an  alternative  to, any existing
Benefit Plan, the Employee shall also be entitled to participate in such Benefit
Plan to the extent  permitted by the terms thereof.  The Corporation  shall have
the right,  however,  to make changes in Benefit Plans  applicable to its senior
executives  or employees  generally  and the  Employee  agrees that such changes
shall also be applicable to the Employee.  A list of the existing  Benefit Plans
is  annexed  hereto  as  Exhibit  2.  Section  5.  Expenses:   Apartment;  Other
Perquisites.  (a)  Subject to  compliance  by the  Employee  with such  policies
regarding expenses and expense reimbursement as may be adopted from time to time
by the Corporation,  the Employee is authorized to incur reasonable  expenses in
the  performance of his duties  hereunder in the  furtherance of the business of
the Corporation and its  subsidiaries,  and the Corporation  shall reimburse the
Employee for all such reasonable  expenses.  (b) In order to enable the Employee
to devote additional time to his duties  hereunder,  the Corporation also agrees
to  reimburse  the Employee  during the  Employment  Period,  up to a maximum of
$3,000  per month  (the  "NYC  Amount")  for the  reasonable  expenses  actually
incurred by the Employee in either (i) renting in his own name and  occupying an
apartment  in New York City or (ii)  staying a hotel in New York  City.  (c) The
Corporation  shall pay all reasonable legal expenses,  up to $10,000 incurred by
Employee in connection with the  negotiation of this  Agreement.  (d) During the
Employment  Period, the Corporation will provide the Employee with an automobile
allowance in the amount of $680 per month,  payable with the first pay period of
each month.  Section 6. Termination.  (a) Definition of the Termination Date The
"Termination Date" shall be the date which is earlier of (i) the last day of the
Employment  Period,  (ii) the effective date of termination of employment as set
forth in the notice which Corporation  delivers to the Employee  indicating that
the Employee's  employment  hereunder is terminated,  or (iii) the date on which
Employee  delivers  written notice to the Corporation that he is terminating his
employment hereunder.  (b) Termination Due to Death or Disability.  In the event
the  Employee's  employment  is terminated  due to his death or  Disability  (as
hereinafter  defined),  he, his estate or his beneficiaries,  as the case may be
shall be entitled to: (i) Salary through the date of death or disability and any
Bonus for any Fiscal Year earned but not yet paid;  (ii) pro-rated Bonus through
the date of death or  Disability,  payable  in  accordance  with  Section  3(b),
provided that if the death or Disability  occurs in the first  Employment  Year,
the full amount of the minimum Bonus shall be paid promptly  after his death or,
in the case of Disability,  promptly after his termination,  with any additional
amount due paid in  accordance  with  Section  3(b);  (iii) in the case of death
only,  a lump sum  payment  equal to three  months  Salary at the annual rate in
effect at the date of death,  paid promptly  after his death;  (iv) the right to
exercise  all stock  options  granted  to  Employee  at the time of his death or
Disability  (whether or not then vested) for a period of one year following such
event or for the remainder of the exercise period, if shorter;  (vi) any amounts
earned, accrued or owing to the Employee but not yet paid under Sections 4 or 5;
(vii) the right to receive all applicable benefits pursuant to the Corporation's
Employee  Long Term  Disability  Coverage  plan (the "Plan") as if he were fully
covered  thereunder,  provided  however,  if  the  Employee  is  precluded  from
receiving such benefits  (e.g. due to the fact that he is no longer  employed by
the Corporation),  the Corporation shall pay to Employee cash payments equal, on
an  after-tax  basis,  to the amount of benefits he would have  received  had he
continued  to be  eligible  to  participate  in the Plan;  and  (viii)  other or
additional  benefits then due or earned in accordance with applicable  plans and
programs of the Corporation. For purposes of this Agreement,  "Disability" shall
mean any physical or mental illness which as a result  thereof,  the Employee is
unable to discharge his duties for a period of six (6) consecutive months or for
a total of 180 days  during any twelve  month  period.  (c)  Termination  by the
Corporation for Cause . (i) "Cause" shall mean: (A) the Employee is convicted of
a felony or engages in conduct  which is  determined by a court to constitute an
act  involving  moral  turpitude;  or (B) the  Employee  engages in conduct that
constitutes (i) willful gross neglect, (ii) willful gross misconduct in carrying
out his duties under this  Agreement or (iii) a violation of the Company's  Code
of Conduct, resulting, in each case, in material harm to the financial condition
or reputation of the Corporation.  (iii) In the event the Corporation terminates
the Employee's  employment for Cause he shall be entitled to: (A) Salary through
the Termination  Date; (B) any amounts earned,  accrued or owing to the Employee
but not yet paid  under  Sections 4 or 5; and (C) other or  additional  benefits
then due or  earned in  accordance  with  applicable  plans or  programs  of the
Corporation. (d) Termination by the Corporation Without Cause . In the event the
Employee's  employment  is terminated  by the  Corporation  without Cause (which
termination  shall be effective as of the date specified by the Corporation in a
written  notice to the  Employee),  other  than due to death or  Disability  the
Employee shall be entitled to and his sole remedies  under this Agreement  shall
be: (i) Salary through the Termination Date; (ii) Salary, at the annualized rate
in effect on the  Termination  Date for a period  which is the  longer of twelve
(12) months  following  such  termination  or the  balance of the then  existing
Employment Period (the "Severance Period"); (iii) pro-rated Bonus for the Fiscal
Year in which termination  occurs,  payable in accordance with Section 3(b), and
any Bonus for any  Fiscal  Year  earned,  but not yet paid,  including,  without
limitation,  the  entire  minimum  Bonus  for the first  year of the  Employment
Period,  payable in a lump sum within  fifteen  (15) days after the  Termination
Date;  (iv) the right to exercise  any stock  option held by the Employee at the
Termination Date (whether or not then vested), such option to remain exercisable
for six (6) months  after the  Termination  Date,  or for the  remainder  of the
exercise period, if shorter;  (v) Any amounts earned,  accrued,  or owing to the
Employee  but  not  yet  paid  under   Sections  4  or  5;  and  (vi)  continued
participation  in all medical,  dental,  health and life insurance  plans and in
other  employee  benefit plans or programs at the same benefit level at which he
was  participating  on the Termination Date until the earlier of: (A) the end of
the Severance Period; or (B) the date, or dates, he receives equivalent coverage
and  benefits  under the plans  and  programs  of a  subsequent  employer  (such
coverage  and  benefits  to  be   determined  on  a   coverage-by-coverage,   or
benefit-by-benefit,  basis);  provided  that if the Employee is  precluded  from
continuing his  participation in any benefit plan or program as provided in this
clause  (vi) of this  Section  6(d) as a  matter  of law or in the  case of life
insurance,  as a result of the requirements of such benefit plan or program, the
Corporation  shall have no obligation to continue to provide such benefits;  and
(vii)  other or  additional  benefits  then due or  earned  in  accordance  with
applicable  plans and programs of the Corporation.  "Termination  Without Cause"
shall mean the Employee's employment is terminated by the Company for any reason
other  than  death,  Disability  or Cause (as  defined  in  Section 6 (c)).  (e)
Termination  by Employee for Good Reason . The Employee  shall have the right to
terminate  the  Employment  Period for "good reason" (as  hereinafter  defined),
provided that the Employee  shall have given the  Corporation  written notice of
the  Employee's  decision to terminate his  employment  (specifying  the alleged
"good  reason"  in  reasonable  detail)  and,  if it is  possible  to cure,  the
Corporation  shall not have cured the same within sixty (60) days after  receipt
of such notice, or, if cure cannot be fully accomplished within sixty (60) days,
the  Corporation  shall not have  commenced  cure  within  sixty (60) days after
receipt of such notice and cured the alleged  "good  reason" as soon as possible
thereafter.  For purposes of the  foregoing,  "good  reason"  shall mean (i) the
assignment to the Employee of duties  inconsistent  with, or the  diminution of,
the Employee's positions,  titles, offices,  duties,  responsibilities or status
with the Corporation as its most senior executive  officer,  or a change without
good cause in the Employee's reporting  responsibilities,  or any removal of the
Employee from, or any failure to elect the Employee to any positions,  titles or
offices  specified in this Agreement and held by the Employee,  (ii) a reduction
in the Employee's Salary,  (iii) a material reduction in the Employee's benefits
or perquisites  (other than a reduction  pursuant to the second to last sentence
of Section 4 hereof);  or (iv) a requirement  that Employee  change his place of
principal employment to a location other than the metropolitan New York area. In
the event that the  Employment  Period is  terminated  by the Employee for "good
reason",  the Employee shall be entitled to, and his sole remedies shall be, the
same  benefits  provided for in Section  6(d)  "Termination  by the  Corporation
Without Cause".  (f) Termination  following  Non-renewal.  In the event that the
Corporation  notifies  the  Employee  in  writing at least 180 days prior to the
expiration  of the  original  Employment  Period or any Renewal  Term that it is
electing to  terminate  this  Agreement  at the  expiration  of the then current
Employment Period and the Employee's employment terminates upon such expiration,
whether  at the  Corporation's  initiative  or the  Employee's  initiative,  the
Employee shall be entitled to: (i) Salary  through the  Termination  Date;  (ii)
Salary, at the annualized rate in effect on the Termination Date for a period of
six (6)  months  following  the  Termination  Date (the  "Non-renewal  Severance
Period");  (iii) pro-rated Bonus for the Fiscal Year in which termination occurs
payable in accordance with Section 3(b) and any Bonus for any Fiscal Year earned
but not yet paid,  payable  in a lump sum  within  fifteen  (15) days  after the
Termination  Date;  (iv) the  right to  exercise  any stock  option  held by the
Employee  at the date of his  termination,  to the  extent  vested at such date,
during the Non-renewal  Severance Period and for sixty (60) days thereafter,  or
for the remainder of the exercise  period,  if shorter;  (v) any amounts earned,
accrued or owing to the  Executive  but not yet paid under  Sections 4 or 5; and
(vi)  continued  participation  in all medical  dental health and life insurance
plans at the same benefit level at which he was participating on the Termination
Date until the earlier of: (A) the end of the Non-renewal  Severance  Period; or
(B) the date, or dates, he receives  equivalent  coverage and benefits under the
plans and programs of a subsequent  employer  (such  coverage and benefits to be
determined on a  coverage-by-coverage,  or benefit-by benefit,  basis); provided
that if the Employee is  precluded  from  continuing  his  participation  in any
benefit plan or program as provided in this clause (vi) of this Section 6(f), as
a  matter  of  law  or in  the  case  of  life  insurance,  as a  result  of the
requirements  of such benefit  plan or program,  the  Corporation  shall have no
obligation to continue to provide such  benefits;  and (vii) other or additional
benefits then due or earned in accordance with applicable  plans and programs of
the  Corporation.  (g) Voluntary  Termination.  In the event of a termination of
employment by the Employee on his own  initiative,  other than a termination due
to  death,  Disability  or  Good  Reason,  the  Employee  shall  have  the  same
entitlement as provided in Section 6 (c) above for a termination for Cause.  (i)
Condition to Receipt of Severance  Payments.  The Employee  hereby  acknowledges
that the "Severance Payment" (as hereinafter defined) is greater than the amount
provided by the  Corporation's  normal  severance policy and is being offered to
the  Employee  in  reliance  upon  the  Employee's   agreement  to  release  the
Corporation  from any  liability  and to waive any claims the  Employee may have
against the Corporation,  including,  without limitation, any claims relating to
the Employment or separation from  employment.  Notwithstanding  anything to the
contrary  contained  herein,  nothing shall impair the  Employee's  (i) right to
enforce the obligations of the  Corporation as set forth in this  Agreement,  or
(ii) right to seek  indemnification  or contribution from the Corporation in the
event the  Employee is the subject of any  third-party  claim  arising out of or
relating  to any act or  omission  by the  Employee  during  the  course  of his
employment  by the  Corporation,  to the extent such right would have  otherwise
existed. For purposes of this Agreement, Severance Payment shall mean any amount
paid to the  Employee  during a  Severance  Period  or a  Non-renewal  Severance
Period,  as the case may be.  Section 7.  Covenant Not to Compete . The Employee
covenants and agrees that he will not, at any time during the Restriction Period
(as defined  below),  whether as owner,  principal,  agent,  partner,  director,
officer, employee, independent contractor, consultant,  shareholder, licensor or
otherwise,  alone or in association  with any other person,  either  directly or
indirectly  , carry on, be engaged or take part in,  render  services to own, or
share in the earnings of, or invest in the stocks, bonds or other securities of,
or be interested in any way in any business  competing  with, or similar to, the
business in which the  Corporation,  or any of its  subsidiaries  are  primarily
engaged,  including,  without limitation, any retail customer of the Corporation
that accounts for 5% or more of the Company's net sales on an annualized  basis,
without  the  written  consent  of the  Board of  Directors,  provided  that the
Employee may hold a passive  investment in a business which is competitive  with
or similar to any of the  businesses of the  Corporation if the investment is in
securities which are listed on a national securities exchange and the investment
in any class of securities does not exceed 1% of the outstanding  shares of such
class or 1% of the aggregate  outstanding principal amount of such class, as the
case may be. In addition,  for one year after the end of the Restriction Period,
the Employee covenants and agrees that he will not, directly or indirectly, hire
any person who is  employed by the  Corporation  on the  Termination  Date whose
annual  salary on such date is equal to or greater  than  $100,000,  or solicit,
induce,  entice  or  hire  any  such  person  to  leave  the  employment  of the
Corporation. For purposes of this Section 7, the "Restriction Period" shall mean
the period beginning with April 1, 1997 and ending on the last day of either (i)
the Employment  Period  (determined  without giving effect to any termination of
employment),  (ii) the  Severance  Period  or (iii)  the  Non-renewal  Severance
Period,  whichever is longer. Section 8. Non-Disclosure  Covenant . The Employee
further agrees that during the Employment  Period and thereafter  without limit,
he will not,  either  directly  or  indirectly,  communicate  or  divulge to any
person, firm or corporation other than the Corporation and its subsidiaries, any
information (except that which is generally known to the public) relating to the
business,  customers and suppliers,  or other affairs of the  Corporation or its
subsidiaries  ("Confidential  Information") except (a) for the purpose of, or in
connection with, the advancement of the business of the  Corporation,  or (b) in
the event that the  Employee is  required  (by oral  questions,  interrogatories
requests for information or documents,  subpoena,  civil investigative demand or
similar legal process) to disclose Confidential Information, and the Employee is
compelled to disclose  such  Confidential  Information  or else stand liable for
contempt or suffer other censure, penalty or violation in a court proceeding. In
the  event  that  the  Employee  is  required  to  disclose  such   Confidential
Information  in the  circumstances  described in clause (b) above,  the Employee
will, to the extent legally permissible either (i) give the Corporation at least
ten days'  written  notice (or  shorter,  but  prompt,  notice to the extent the
Employee  is  required  to respond to legal  process in fewer than ten days ) so
that the Corporation may seek an appropriate protective order, or (ii) make such
disclosure to a court under seal. The provisions of this Section 8, shall not be
applicable  to  information  which (i) was at the time of the  disclosure by the
Corporation to the Employee,  in the public domain; (ii) has subsequent,  to the
disclosure  by the  Corporation,  become part of the public  domain,  through no
fault, act or omission of the Employee,  directly or indirectly, in violation of
such obligation;  (iii) was, at the time of the disclosure by the Corporation to
the Employee,  in the Employee's  possession and was not otherwise,  directly or
indirectly acquired from the Corporation; (iv) was received by the Employee from
any third party,  provided that such  information was not obtained by said third
party from the  Corporation  improperly,  directly  or  indirectly,  and was not
improperly  disclosed by the third party.  Section 9.  Indemnification  . On the
same terms and  conditions  applicable  to other  directors  and officers of the
Corporation,  the Corporation  shall continue to indemnify the Employee  against
all  liability  and loss with  respect to any  threatened,  pending or completed
action,  suit  or  proceeding,   whether  civil,  criminal,   administrative  or
investigative  (other than an action by or in the right of the  Corporation)  by
reason of the fact that he is or was a director,  officer,  employee or agent of
the  Corporation  or any of  its  subsidiaries  or  Affiliates  (as  hereinafter
defined),  against expenses (including  attorneys' fees),  judgments,  fines and
amounts paid in settlement actually and reasonably incurred by him in connection
with such action,  suit or  proceeding if he acted in good faith and in a manner
he  reasonably  believed  to be in or not opposed to the best  interests  of the
Corporation,  and,  with respect to any criminal  action or  proceeding,  had no
reasonable  cause to believe his conduct was unlawful.  The  termination  of any
action, suit or proceeding by judgment, order, settlement, conviction, or upon a
plea of nolo  contendere  or its  equivalent,  shall not,  of  itself,  create a
presumption  that  he did  not  act in  good  faith  and in a  manner  which  he
reasonably  believed  to be in or not  opposed  to  the  best  interests  of the
Corporation,  and,  with  respect  to any  criminal  action or  proceeding,  had
reasonable cause to believe that his conduct was unlawful.  Notwithstanding  any
other provision of this Agreement, the Corporation's obligation to indemnify the
Employee  shall survive the expiration of this  Agreement,  provided that in the
event  that  the  Employee  is  terminated  pursuant  to  Section  6(c)  of this
Agreement,  the  Corporation  shall have no obligation to indemnify the Employee
under this Section 9 against any liability, loss or expense arising from conduct
that constitutes  grounds for the Corporation to terminate the Employment Period
pursuant to Section 6(c) of this Agreement.  Section 10. Stock Options. Upon the
Commencement  Date, the  Corporation  shall grant to the Employee  non-qualified
Stock Options (the "Stock  Options")  representing the right to purchase 400,000
shares of the Corporation's common stock, par value $1.00 per share (the "Common
Stock"),  pursuant to the Corporation's  1996 Stock Plan. The exercise price for
the  Stock  Options  will  be the  market  price  of  the  Common  Stock  on the
Commencement  Date.  Stock Options  representing  the right to purchase  100,000
shares of common stock will vest upon each of the first two anniversaries of the
grant date for the Stock Options,  and Stock Options  representing  the right to
purchase  200,000  shares of Common Stock will vest on the third  anniversary of
the grant date.  The Stock Options shall be subject to the terms and  conditions
set forth in the Corporation's 1996 Stock Plan and an agreement or agreements to
be entered into, pursuant to such plan (the "Stock Option Agreements"),  between
the  Corporation  and  the  Employee,   provided  however,  there  shall  be  no
restrictions on any Common Stock acquired by Employee by exercise of any options
granted by the Corporation, except for those restrictions pursuant to applicable
law. Notwithstanding anything contained herein or in the Stock Option Agreements
to the contrary,  all Stock Options  outstanding  shall  immediately vest upon a
"Change of Control" (as  hereinafter  defined).  During the  Employment  Period,
Employee  shall  also  receive  such  additional  options  as  the  Board  deems
appropriate in its sole  discretion.  Section 11. Vacations . The Employee shall
be entitled to paid vacations in accordance with the policies of the Corporation
in effect  from time to time,  but not less than four weeks in any of the Fiscal
Years during which the Employee is employed. To the extent the Employee does not
use the full  vacation  period  during a Fiscal  Year the unused  balance  shall
accrue and be carried over into subsequent Fiscal Years; provided, however, that
no more than an  aggregate of two weeks of unused  vacation  time may be carried
forward  from one  Fiscal  Year to the  next  Fiscal  Year.  Section  12.  Legal
Expenses. The Corporation shall pay all legal fees and related expenses incurred
by the  Employee as a result of (i) the  Employee's  termination  of  employment
(including  all such  fees and  expenses,  if any,  incurred  in  contesting  or
disputing any such  termination to employment) if the Corporation has been found
to be in breach of its obligations  hereunder or (ii) the Employee's  seeking to
obtain or  enforce  any right or  benefit  provided  by this  Agreement,  if the
Employee  prevails  against the  Corporation  in any  proceeding in which rights
hereunder are contested.  Section 13. Successors and Assigns . In the event that
the  Corporation  shall at any time be  merged  or  consolidated  with any other
corporation or shall sell or otherwise transfer  substantially all of its assets
or business to another  corporation or entity,  the provisions of this Agreement
shall be binding  upon and inure to the  benefit of such  corporation  or entity
surviving or resulting from such merger or consolidation or to which such assets
or business shall be so sold or  transferred;  provided,  however,  that nothing
contained in this  Section 13 shall in any way limit,  or be construed to limit,
the  obligations to the Employee under this Agreement or the  obligations of the
Corporation or the Corporation's successors or assigns. This Agreement shall not
be  assignable  by the  Employee.  Section  14.  Notice.  Any  notice  or  other
communication  which is  required or  permitted  by this  Agreement  shall be in
writing  and shall be deemed to have been duly given when  delivered  in person,
transmitted  by telecopy or five (5) days after being  mailed by  registered  or
certified mail, postage prepaid,  return receipt requested, to such party at the
address shown below:

                                   If to the Corporation, care of the following:

                               Salant Corporation
                           1114 Avenue of the Americas
                             New York New York 10036
                           Attention: Todd Kahn, Esq.

                                    If to the Employee, then to the following:

                               Jerald S. Politzer
                             c/o Salant Corporation
                           1114 Avenue of the Americas
                            New York, New York 10036

                                With a copy to :
                               Peter Alkalay, Esq.
                             McLaughlin & Stern, LLP
                               260 Madison Avenue
                            New York, New York 10016

Each party may, by notice or other party, change the above address.

     Section 15.  Entire  Agreement;  Amendments.  This  Agreement  embodies the
entire agreement and understanding  between the parties and supersedes all prior
agreements  and  understandings  as  to  the  employment  of  the  Employee.  No
amendment,  waiver,  modification  or  discharge  of any of the  terms  of  this
Agreement shall be valid unless in writing and signed by the party against which
enforcement  is sought.  Section  16.  Waiver.  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  thereof.  Section  17.  Counterparts.  This
Agreement may be executed in several counterparts, each of which shall be deemed
to be an original.  Section 18.  Governing  Law;  Resolution  of Disputes.  This
Agreement  shall be governed by, and construed in accordance  with,  the laws of
the State of New York. The Employee hereby  acknowledges that irreparable damage
will  occur  in the  event  that  Sections  7 and 8 of  this  Agreement  are not
performed in accordance  with their specific terms or are otherwise  breached by
the Employee. It is accordingly agreed that the Corporation shall be entitled to
an injunction or injunctions to prevent breaches or such provisions in any Court
of the United States or any states having  jurisdiction,  this being in addition
to any other  remedy to which the  Corporation  may be  entitled to at law or in
equity.  Except in the event the Corporation is attempting to seek injunctive or
other equitable  relief for a breach by the Employee of Sections 7 and 8 of this
Agreement,  the parties agree that as a condition precedent to the filing of any
claim as set forth below, the parties and their attorneys must attempt to confer
at least  twice,  in person,  in an effort to resolve any  dispute.  Should such
efforts  not  be   successful,   such  dispute  shall  be  resolved  by  binding
arbitration,  to be held in New  York  City in  accordance  with the  rules  and
procedures  of the American  Arbitration  Association.  Judgment  upon the award
rendered by the  arbitrator(s)  may be entered in any court having  jurisdiction
thereof.  Each  party  shall  bear his or its own  costs of the  arbitration  or
litigation,   including,  without  limitation,   attorneys'  fees.  Pending  the
resolution  of any  arbitration  or  court  proceeding,  the  Corporation  shall
continue  payment  of all  amounts  and  benefits  due the  Employee  under this
Agreement.  Section 19. Certain  Definitions  "Affiliate" shall mean any person,
firm,  corporation,   partnership  or  other  legal  entity  that,  directly  or
indirectly,  controls,  is  controlled by or is under common  control with,  the
Corporation.  "Change  of  Control"  shall  mean an event or series of events by
which (i) any Person is or becomes the  "beneficial  owner" (as defined in rules
13d-3 and 13d-5  under the  Securities  and  Exchange  Act of 1934,  as amended,
except  that a person  shall be deemed  to have  "beneficial  ownership"  of all
shares  that any such  Person has the right to  acquire,  whether  such right is
exercisable  immediately or after the passage of time),  directly or indirectly,
of a majority of the  aggregate  Voting  Stock of the  Corporation;  or (ii) the
Corporation  consolidates  with  or  merges  into  another  Person  or  conveys,
transfers or leases all or substantially all of its assets to any Person, or any
Person  consolidates  with or  merges  into the  Corporation,  in  either  event
pursuant  to a  transaction  in  which  the  outstanding  Voting  Stock  of  the
Corporation  is  changed  into  or  exchanged  for  cash,  securities  or  other
properties,  other  than any such  transaction  where the  holders of the Voting
Stock of the Corporation  immediately prior to such transaction own, directly or
indirectly,  immediately  after such transaction  Voting Stock of such surviving
corporation entitling them to not less than 50% of the aggregate voting power of
all Voting Stock of such surviving corporation. Notwithstanding the foregoing, a
Change of Control shall not be deemed to occur if the Person described in clause
(i) or (ii) is  Apollo  Apparel  Partners,  L.P.  or is an  Affiliate  of Apollo
Apparel  Partners,  L.P.  "Voting  Stock" shall mean  securities of any class or
classes  (or  equivalent  interests)  of  any  entity,  if  the  holders  of the
securities of such class or classes (or equivalent interests) are ordinarily, in
the absence of contingencies, entitled to vote for the election of the directors
(or natural persons or entities  performing  similar  functions) of such entity,
even though the right to so vote has been  suspended by the  happening of such a
contingency. "Control" shall mean the power to direct the affairs of any person,
firm,  corporation,  partnership or other legal entity by reason of ownership of
voting stock, by contract or otherwise.  "Person" shall mean any natural person,
corporation, partnership, trust, association, governmental authority or unit, or
any other entity, whether acting in an individual,  fiduciary or other capacity,
or any group of Persons acting in concert. IN WITNESS WHEREOF,  the parties have
executed this Agreement as of the dates set forth below.

                    SALANT CORPORATION

                   By:_____________________ Date_______, 1997
                    Todd Kahn
                    Vice President,
                   Secretary and General Counsel


                  ________________________Date_____., 1997
                  Jerry S. Politzer



<PAGE>





                                    EXHIBIT 1

                         INCENTIVE COMPENSATION SCHEDULE


         (a)      If the Corporation's "Pre-tax Income", as shown on its audited
                  financial statements for any Fiscal year during the Employment
                  Period  ("Actual  Annual  Pre-tax  Income"),  is  equal  to or
                  greater than 100% of the amount of Pre-tax Income provided for
                  in the Corporation's annual business plan for that Fiscal Year
                  ("Planned Annual Pre-tax Income"),  the Employee shall receive
                  a cash bonus equal to 100% of his annual  Salary at the end of
                  the applicable Fiscal year ("Annual Salary").

         (b)      If Actual  Annual  Pre-tax  Income is equal to or greater than
                  90% and less than 100% of Planned Annual Pre-tax  Income,  the
                  Employee shall receive a cash bonus equal to 50% of his Annual
                  Salary.

         (c)      If Actual Annual Pre-tax Income exceeds 100% of Planned Annual
                  Pre-tax  Income,  then in addition to the bonus  specified  in
                  paragraph (a) above,  the Employee  shall  receive  additional
                  cash bonuses,  each equal to 1% of his Annual Salary, for each
                  full 1% increment  (after rounding to the nearest 1/100th of a
                  percent) by which Actual Annual Pre-tax Income exceeds 100% of
                  Planned Annual Pre-tax Income.

         (d)      The  following  principles  shall  apply  in  calculating  the
                  "Pre-tax Income" which term shall mean the aggregate income of
                  the Corporation  before provisions for all Federal,  State and
                  local income  taxes  thereon.  In  calculating  such  "Pre-tax
                  Income",   all  items  of  income  and  deductions   shall  be
                  determined in accordance  with generally  accepted  accounting
                  principles applied on a consistent basis, subject, however, to
                  the provisions of the following subparagraphs:

                           (i)  There  shall  be  excluded   from  income:   all
                  extraordinary  items of income such as gains and losses on the
                  sale of fixed  assets  or  intangible  assets;  all  insurance
                  recoveries other than for business interruption; non-recurring
                  gains or losses including, without limitation, gains or losses
                  on the  termination of any employee  benefit plans or gains or
                  losses realized on the sale quota.
                           (ii)   Deductions   from  income  shall  include  all
                  interest expenses, fixed charges and reasonable provisions for
                  depreciation,amortization    and    obsolescence,    inventory
                  write-offs  and the  salary  and bonus  payable  to all of the
                  employees of the Corporation and the Employee hereunder.

                           (iii) The amount of "Planned  Annual Pre-tax  Income"
                  for each Fiscal Year shall be determined by the  Corporation's
                  Board of Directors.

                                    EXHIBIT 2

                         EXISTING EMPLOYEE BENEFIT PLANS