1

                              EMPLOYMENT AGREEMENT

           EMPLOYMENT   AGREEMENT,   dated  as  of   February   11,  1997  (this
"Agreement"),  between MICHAEL A. LUBIN (the "Employee") and SALANT CORPORATION,
a Delaware corporation (the "Corporation").
             WHEREAS,  the Employee and the Corporation  desire to enter into an
             agreement of employment;  NOW,  THEREFORE,  in consideration of the
             premises and of the mutual covenants hereinafter set forth,
the parties hereto agree as follows:
             1.  Employment.   During  the  Employment  Period  (as  hereinafter
defined), the Corporation shall employ the Employee and the Employee shall serve
as President and Chief Operating Officer of the Corporation.  The Employee shall
perform  such  services  and  duties  of a senior  executive  character  for the
Corporation  and any  division,  subsidiary  or  affiliate  thereof  as shall be
assigned  to him  from  time to  time  by the  Chief  Executive  Officer  of the
Corporation  during the Employment  Period.  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,  its subsidiaries
and affiliates in the advancement of the best interests of the Corporation,  its
subsidiaries  and  affiliates.  The Employee  will perform his duties  hereunder
principally in the metropolitan New York 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,  (b) deliver  lectures,
fulfill speaking engagements or teach at educational institutions,  (c) serve as
a  director   and   executive   officer  of  Lexington   Precision   Corporation
("Lexington")  and its  affiliates  provided that such  activities do not exceed
twenty  (20)  business  days  annually  (it being  understood  that there may be
intervals  during any year during  which the  Employee's  involvement  with such
entities may be greater  than during other  periods of such year) and (d) manage
personal  investments  and  serve  as a  partner  of  Lubin,  Delano  & Co.,  an
investment bank ("Lubin  Delano"),  so long as such activities do not interfere,
in any material respect, with the performance of Employee's  responsibilities as
an employee of the Corporation in accordance with this Agreement.
             2. Term of Agreement.  (a) For purposes of this Agreement, the term
"Employment  Period"  shall mean the period  commencing  February  11,  1997 and
ending June 30,  1998.  In the event of the  Employee's  death prior to June 30,
1998,  the  Employment  Period  shall  terminate on the last day of the calendar
month  within  which  such  death  shall  have  occurred.  In the event that the
Employee shall become totally  disabled  (either  mentally or physically)  for a
period  of three (3)  consecutive  months or more  prior to June 30,  1998,  the
Employment Period shall terminate at the end of such three (3) consecutive month
period.  (b)  Notwithstanding  anything  contained  herein to the contrary,  the
Corporation shall have the right to terminate the Employment Period immediately,
upon three (3) days prior written  notice to the  Employee,  if the Employee (i)
engages in conduct which is determined by a court of competent  jurisdiction  to
be guilty of a felony or act of moral turpitude, (ii) commits any act of willful
misconduct, malfeasance or gross negligence that is injurious to the Corporation
in any material respect, (iii) commits a material violation of the Corporation's
Code of  Conduct,  or (iv)  breaches  this  Agreement  in any  material  respect
(collectively, "For Cause Termination").
             (c) 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 the  Corporation  shall not have  cured the same  within  three (3)
business days after receipt of such notice,  such cure to be  retroactive in the
case of any reduction in the "Adjusted  Salary" (as  hereinafter  defined).  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,  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 or (ii) a reduction in the Adjusted Salary.
             (d) Notwithstanding  anything contained herein to the contrary,  in
the event that the  Employee's  employment  hereunder is  terminated  (i) by the
Corporation  prior to the expiration of the  Employment  Period (other than as a
result of a For Cause  Termination  or as a result of death or disability of the
Employee)  or (ii) by the  Employee  for  good  reason,  the  Corporation  shall
continue to pay to the Employee the Adjusted Salary for the period commencing on
the  date of such  termination  until  the  later  of (x)  the  last  day of the
Employment  Period or (y) six  months  (the  "Separation  Period").  During  the
portion of the  Separation  Period prior to June 30, 1998, and no other portion,
the  Employee  shall (i) be entitled  to any pro rata bonus as  provided  for in
Section  3(c) herein and (ii) be deemed an employee of the  Corporation  for all
benefit determination and eligibility purposes,  including,  without limitation,
insurance and the right to exercise stock options.
             (e) If the Corporation and the Employee fail to agree to extend the
Employee's  employment beyond the Employment Period (other than as a result of a
For Cause  Termination  or as a result of death or disability of the  Employee),
the Corporation will continue to pay the Employee (the "Severance Payment") on a
bi-weekly basis the Adjusted Salary for the period  commencing on the Employee's
last day of employment  until the earlier of (i) the day the Employee  commences
Full Time  Employment  (as  hereinafter  defined)  or (ii) six (6)  months  (the
"Severance Period").  During the Severance Period, the Corporation shall provide
the Employee with the same life,  medical and dental insurance benefits that the
Employee  would have had if the  Employment  Period would have been extended for
such period of time. The Employee will not be entitled to (i) any pro-rata bonus
for the Severance  Period or (ii) any other severance  pursuant to any severance
policy then in effect.  In addition,  the  Corporation's  obligation to make the
Severance  Payment  is  contingent  upon the  Employee's  execution  of a mutual
general release as reasonably  established by the Corporation from time to time.
For purposes of this Agreement "Full Time Employment"  shall mean any employment
as owner,  principal,  agent,  partner,  director,  officer or employee  for any
entity,  corporation,   partnership  or  individual,  other  than  Lexington  or
consulting  engagements  as a principal of Lubin Delano,  where such  employment
equals or exceeds thirty (30) hours per week.
             The Employee  hereby  acknowledges  that the  Severance  Payment 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  Employee's  employment or separation  from  employment.
Notwithstanding  anything  to the  contrary  contained  herein or in any release
executed  by the  Employee  at any time  hereafter,  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 or
claim by or on behalf of the  Corporation  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.
             3. Compensation.  (a) The Corporation agrees to pay to the Employee
during the Employment  Period as compensation for the services to be rendered by
the  Employee a current base salary at the rate of $400,000 per annum (the "Base
Salary") payable in equal bi-weekly  installments  during the Employment Period.
On January 1, 1998, the Base Salary shall be adjusted  upward for inflation by a
percentage  equal to the percentage  increase in the "Consumer  Price Index" (as
hereinafter defined) for the period from October 1995 through December 31, 1997.
For purposes of this  Agreement,  the term "Consumer Price Index" shall mean the
"Consumer Price Index"  published by the Bureau of Labor  Statistics of the U.S.
Department of Labor, New York City, all items.  The Base Salary,  as adjusted in
accordance with this provision, shall be referred to as the Adjusted Salary.
             If the Consumer Price Index shall become unavailable to the public,
the Corporation  will substitute for it a comparable index based upon changes in
the cost of living or purchasing  power of the consumer dollar  published by any
other governmental agency, or if unavailable,  a comparable index published by a
major bank or other  financial  institution  or by a  university  or a generally
recognized financial publication.
             (b) In respect of each year of the Employment  Period,  in addition
to the salary provided in (a) above, a bonus, if any, calculated as follows:
             (i) If the Corporation attains or exceeds its Pre-tax Income Budget
for the any fiscal  year,  commencing  with the 1997 fiscal year (a copy of each
fiscal  year's budget will be furnished to the Employee in December of the prior
year), the Corporation shall pay a bonus to the Employee for such fiscal year in
which such Pre-tax  Income  Budget was  attained or exceeded by the  Corporation
equal to one hundred  percent (100% ) of the base salary paid during such fiscal
year plus an additional bonus equal to twenty percent (20%) of such then current
base  salary for each full five  percent  (5% ) (after  rounding  to the nearest
1/100th of a  percent)  by which the actual  Pre-tax  Income of the  Corporation
exceeds its Pre-tax Income Budget. For example, if the Pre-tax Income Budget for
the  Corporation for 1997 is $20,000,000  and the  Corporation's  actual Pre-tax
Income is  $21,000,000  the Employee shall be entitled to a bonus of one hundred
and twenty percent (120%) of his 1997 current base salary of $400,000 or a bonus
of $480,000,
             (ii) Notwithstanding  anything contained herein to the contrary, if
the actual  Pre-tax Income of the  Corporation is less than one hundred  percent
(100%) of its Pre-tax  Income Budget in any fiscal year,  the Employee shall not
be  entitled  to any bonus  for such  fiscal  year.  The  Employee  shall not be
entitled to any minimum or guaranteed bonus in respect of any fiscal year.
             (c) The amount of such bonus,  if any,  shall be  calculated  on or
before  ninety  (90)  days  following  the last day of each  fiscal  year of the
Corporation  commencing  with the 1997 fiscal year.  A written  statement of the
calculation  and the  amount of the bonus,  if any,  shall be  delivered  to the
Employee within such ninety (90) day period.
             In the event of the  termination of the Employment  Period prior to
the close of a complete  fiscal year of the  Corporation,  the  calculation  for
purposes of determining a bonus shall be computed on the basis of the results of
the full fiscal year  within  which the  termination  of the  Employment  Period
occurs; provided,  however, that the amount of the actual bonus, if any, payable
to the  Employee  with  respect  to such  year  shall be  prorated  based on the
proportion  that (x) the number of days from  January 1 of such year to the date
of the termination of the Employment Period bears to (y) 365.
             Notwithstanding   anything  to  the  contrary   contained  in  this
Agreement,  if the  Employee  voluntarily  leaves the employ of the  Corporation
prior to the completion of the Employment  Period (other than in connection with
a breach of this  Agreement  by the  Corporation)  or the  Employment  Period is
terminated  by the  Corporation  pursuant to Section 2(b)  hereof,  the Employee
shall not be  entitled to any bonus or pro rata bonus for the year in which such
termination takes place or any subsequent year.
             (d)  The  following  principles  shall  apply  in  calculating  the
"Pre-tax  Income  of the  Corporation"  which  term  shall  mean  the  aggregate
consolidated  income of the Corporation before provision 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 of 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.
                      4.  Employee Benefit Plans.  Nothing herein contained 
shall affect the right of the Employee
to participate and receive  benefits under and in accordance with the provisions
of any present or future pension or profit sharing plan, pension plan, insurance
plan,  medical plan,  stock option plan, plan of deferred  compensation or other
similar plan or policy of the Corporation for the benefit of its employees.
             5. Covenant Not to Compete.  The Employee covenants and agrees that
he will not, at any time during the Employment Period (determined without giving
effect to any termination of employment),  whether as owner,  principal,  agent,
partner, 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
or own, share in the earnings of, or invest in the stocks,  convertible bonds or
other  convertible  securities  of, or be  interested in any way in any business
competing with the businesses of the Corporation or its subsidiaries without the
written consent of the Board of Directors of the Corporation,  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 or NASDAQ and the
investment  in any class of  securities  does not  exceed 2% of the  outstanding
shares of such class or 2% of the aggregate outstanding principal amount of such
class,  as the case may be.  In  addition,  for one  year  after  the end of the
Employment  Period  (determined  without  giving  effect to any  termination  of
employment),  the Employee  covenants  and agrees that he will not,  directly or
indirectly,  (i) hire any  person  who is  employed  by the  Corporation  on the
Employee's  last day of  employment  whose annual  compensation  on such date is
equal to or greater than  $100,000 or (ii) solicit,  induce,  entice or hire any
such person to leave the employment of the Corporation.
             6. 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,  its subsidiaries and affiliates,  any information (except
that which is  generally  known or  available  to the  public)  relating  to the
business,  customers and  suppliers,  or other affairs of the  Corporation,  its
subsidiaries  or  affiliates  ("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
Section  6(b),  the Employee will 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.
             7.  Indemnification.  To the  fullest  extent  permitted  under the
Delaware  General  Corporation Law and, in any event, on terms and conditions no
less  favorable  than those  applicable  to directors  or other  officers of the
Corporation,  the Corporation shall indemnify the Employee against all liability
and loss with  respect to any  threatened,  pending or completed  action,  suit,
proceeding  or  investigation,   whether  civil,  criminal,   administrative  or
investigative  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,
against expenses (including, without limitation,  reasonable attorneys' fees and
the costs of  enforcing  this Section 7),  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,  proceeding  or  investigation  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 or termination of this Agreement, provided
that in the event that the  Employee is  terminated  pursuant to Section 2(b) of
this  Agreement,  the  Corporation  shall have no  obligation  to indemnify  the
Employee  under this Section 7 against any  liability,  loss or expense  arising
from conduct  that  constitutes  grounds for the  Corporation  to terminate  the
Employment Period pursuant to Section 2(b) of this Agreement.
             8. Business Expenses; Auto Allowance.  The Employee will submit, on
a timely basis, to the Corporation periodic reports of travel and other expenses
in connection with his employment  hereunder,  in such form and at such times as
may  reasonably be required by the  Corporation.  Such travel and other expenses
will  be  subject  to  approval  by the  Corporation  and the  Employee  will be
reimbursed  for such  expenses as are  reasonably  incurred  by the  Employee in
accordance  with this Section 8. 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.
             9. Continuity of the Corporation. In the event that the Corporation
shall at any time be  merged  or  consolidated  with any  other  corporation  or
corporations  or shall sell or otherwise  transfer a substantial  portion of its
assets to another  corporation or entity, the provisions of this Agreement shall
be binding upon and inure to the benefit of the Corporation or entity  surviving
or resulting from such merger or  consolidation or to which such assets shall be
sold  or  transferred.  Except  as  provided  in the  preceding  sentence,  this
Agreement shall not be assignable by the Employee.
             10. Stock Options.  Upon the commencement of the Employment Period,
the  Corporation  shall  grant  to  the  Employee   nonqualified  stock  options
representing  the right to purchase 162,500 shares of the  Corporation's  common
stock,  par  value  $1.00  per  share  (the  "Common  Stock"),  pursuant  to the
Corporation's  1987 Stock Plan,  1988 Stock Plan  and/or  1993 Stock  Plan.  The
purchase  price for such  options  will be the market  price on the grant  date.
Stock options  representing  the right to purchase 99,997 shares of Common Stock
will  vest on the  grant  date  for  such  options.  Thereafter,  stock  options
representing  the right to  purchase  8,929  shares of  Common  Stock  will vest
monthly for each of seven (7) months.  The stock options shall be subject to the
terms and conditions set forth in the Corporation's  1987 Stock Plan, 1988 Stock
Plan and/or 1993 Stock Plan,  as the case may be, and an agreement or agreements
to be entered  into,  pursuant  to the  applicable  plan or plans,  between  the
Corporation and the Employee.  The Corporation  represents and warrants that the
stock options granted to the Employee shall qualify for the exemptions  afforded
by the Securities and Exchange Commission Rule 16b-3 as in effect as of the date
of this Agreement.
             11.  Notice.  Any  notice or other  communication  provided  for or
permitted  herein  shall be deemed to be fully given if in writing and mailed by
registered or certified  mail,  return receipt  requested,  to such party at the
addresses 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:

                                            Mr. Michael A. Lubin
                           C/0 Lubin, Delano & Company
                                            767 Third Avenue
                                            29th Floor
                            New York, New York 10017

Each  party may  change  its or his  respective  address  by  written  notice as
described above.

     12.  Complete  Agreement;  Modification  and  Termination.  This  Agreement
constitutes  the full and complete  understanding  and agreement of the parties,
supersedes all prior  understandings  and agreements as to the employment of the
Employee  and cannot be amended,  changed,  modified or  terminated  without the
consent in writing of the Corporation and the Employee.  13. 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.  14. Counterparts.
This Agreement shall be executed in several counterparts, each of which shall be
deemed to be an original.  15.  Arbitration.  The  Employee and the  Corporation
agree that any dispute of any kind,  nature or  description  between the parties
hereto, with respect to, relating to or arising out of the Employee's employment
with the  Corporation  or the terms of this  Agreement,  shall be  submitted  to
binding arbitration before the American Arbitration Association in New York, New
York in  accordance  with its rules then in effect.  The costs and  expenses  of
arbitration  (including,  without  limitation,  reasonable  attorneys'  fees and
expenses) of the prevailing  party,  shall be paid by the party against whom the
issue is determined.  16. Definitions.  For purposes of this Agreement, the term
"affiliate" shall mean any person, firm or corporation  controlling,  controlled
by or under common control with, the Corporation.  The term "control" shall mean
the power to direct the affairs of any person,  firm or corporation by reason of
ownership of voting stock, by contract or otherwise.  17. Headings. The headings
in this  Agreement are solely for  convenience of reference and shall not affect
its  interpretation.  18.  Governing Law. The Agreement shall be governed by and
construed according to the laws of the State of New York.

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

                                ---------------------------
                                         MICHAEL A. LUBIN


                                            SALANT CORPORATION

                          By__________________________
                               Nicholas P. DiPaolo
                                                  Chairman, Chief Executive
                                                    Officer and President