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                                                              December 1, 1995

Salant Corporation
1114 Avenue of the Americas
New York, NY  10036
Attn:    Mr. Nicholas P. DiPaolo
         Chairman of the Board

Ladies and Gentlemen:

The purpose of this letter is to confirm the  engagement,  effective  October 1,
1995 (the  "Effective  Date"),  of Lubin,  Delano & Company  ("LD&C")  by Salant
Corporation (the "Company") to render certain financial  advisory and investment
banking services to the Company.

Section 1. Prior  Agreement.  LD&C and the Company  are parties to an  agreement
dated  January  2,  1994,  as  amended  by a  letter  dated  February  28,  1995
(collectively,  the "Prior  Agreement").  This letter hereby  replaces the Prior
Agreement and such  agreement  shall be deemed null and void as of the Effective
Date.

Section 2. Services to be Rendered. LD&C will render such financial advisory and
investment  banking services as may from time to time by agreed upon by LD&C and
the Company.

The  Company  acknowledges  that all  opinions  and advice  given by LD&C to the
Company in connection with LD&C's engagement are intended solely for the benefit
and use of the Company (including their management, directors and attorneys) and
the Company  agrees that no such  opinion or advice  shall be used,  reproduced,
disseminated,  quoted  or  referred  to at any  time,  in any  manner or for any
purpose  (other  than for the  Company's  internal  use),  nor shall any  public
references  to LD&C be made by the Company (or such  persons)  without the prior
written consent of LD&C, which consent shall not be unreasonably withheld.

Section 3.  Confidential  Treatment.  LD&C hereby  agrees  that any  information
furnished by the Company in the course of LD&C's engagement hereunder and LD&C's
work  product  in  connection  with  its  engagement   hereunder  will  be  kept
confidential and will not, without the prior written consent of the Company,  be
disclosed to any third party, provided,  however, that (i) any such material may
be disclosed to LD&C's  partners,  employees and attorneys who need to know such
information  in connection  with LD&C's  performance  of services  hereunder (it
being understood that such partners, employees and attorneys will be informed by
LD&C of the  confidential  nature of such  material and that by  receiving  such
material  they are agreeing to be bound by this Section 2 and that LD&C shall be
responsible for any breach by such person of any of the provisions hereof),  and
(ii) any such  material may be disclosed as may be legally  required in response
to a summons or subpoena or in  connection  with any  litigation  or in order to
comply with any law, order,  regulation or ruling applicable to LD&C,  provided,
however,  that either (a) LD&C shall give the Company at least ten days  written
notice (or shorter, but prompt, notice to the extent LD&C is required to respond
to legal  process in fewer than ten days)  prior to any  disclosure  of any such
material,  setting forth the reasons for the disclosure of such material and the
basis upon which  such  disclosure  will not,  in LD&C's  reasonable  judgement,
constitute a breach of this agreement, or (b) LD&C may make such disclosure to a
Court under seal.  LD&C further  agrees that in the event any disclosure of such
material  is to be made by LD&C  under  clause  (ii) above and LD&C has not made
such  disclosure to a Court under seal,  LD&C will not oppose any application by
the Company that the  disclosure of such  material be made under an  appropriate
confidentiality  order and seal.  Subject to the foregoing,  LD&C shall take all
reasonable  steps to protect  such  material  to prevent any  disclosure  or use
thereof except as provided by this agreement. LD&C further agrees that, upon the
Company's  request,  LD&C will promptly return,  or destroy,  any or all of such
information.

Section 4. Monthly  Retainer.  The Company shall pay to LD&C a monthly retainer,
payable in advance, of $8,333.33 commencing on the Effective Date.

  Section  5.  Expenses.  In  addition  to any fees that may be  payable to LD&C
hereunder,  the  Company  hereby  agrees,  from  time to time upon  request,  to
reimburse  LD&C for all  reasonable  travel  and  other  out-of-pocket  expenses
incurred in connection with LD&C's engagement hereunder.

Section  6.  Indemnification.  The  Company  agrees to  indemnify  LD&C (and its
partners,  agents and  employees) as described in the letter  agreement  between
LD&C and the Company dated September 20, 1993, which is attached hereto.

  Section  7.  Termination  of  Engagement.  LD&C's  engagement  hereunder  will
continue and be  coterminous  to Michael A. Lubin's  Employment  Period (as such
term is defined in the  Employment  Agreement,  dated October 10, 1995,  between
Michael A. Lubin and the Company), provided, however, that LD&C will be entitled
to any and all fees  paid or due  under  Section  4 hereof  through  the date of
termination,  and provided,  further, that the provisions of Sections 3, 5 and 6
hereof shall survive such termination.

Please confirm that the foregoing is in accordance with your  understandings and
agreements  with LD&C by signing and  returning  to LD&C the  duplicate  of this
letter enclosed herewith.


                                            Very   truly yours,

                                             LUBIN, DELANO & COMPANY


                                              By:
                                               General Partner

ACCEPTED AND AGREED AS OF THE
DATE FIRST ABOVE WRITTEN:

SALANT CORPORATION



  By:
Title: