<PAGE>

                                                                  EXHIBIT 10-J-2
                                                                  --------------



                              HARTMARX CORPORATION

                           DEFERRED COMPENSATION PLAN



                           EFFECTIVE JANUARY 1, 2001
<PAGE>

                              HARTMARX CORPORATION

                           DEFERRED COMPENSATION PLAN



                     I.  PURPOSE

                    II.  DEFINITIONS

                   III.  ELIGIBILITY AND PARTICIPATION LIMITS

                    IV.   BENEFITS

                     V.   CLAIM FOR BENEFITS PROCEDURE

                    VI.   ADMINISTRATION

                   VII.    AMENDMENT AND TERMINATION

                  VIII.    MISCELLANEOUS
<PAGE>

                              HARTMARX CORPORATION
                           DEFERRED COMPENSATION PLAN



   I.  PURPOSE
       -------

     The purpose of the Hartmarx Deferred Compensation Plan is to provide a
     means whereby Hartmarx may afford certain employees and senior management
     with an opportunity to build additional financial security, by providing a
     vehicle to defer Salary and Bonus amounts.  Deferrals of Salary and Bonus
     will be credited with interest based on the Company's incremental short-
     term borrowing cost, in accordance with the Plan, and paid to the
     Participant (or his or her Beneficiary) as described herein.  By providing
     a means whereby Salary and Bonus may be deferred into the future, the Plan
     will aid in attracting and retaining managers of exceptional ability,
     provide them with additional financial security at the time of Retirement
     and supplement other Company-sponsored benefits in the event of death or
     Disability.


  II.  DEFINITIONS
       -----------

       2.1  "Administration Committee" means the Plan Administration Committee
       appointed pursuant to Article VI to manage and administer the Plan.

       2.2  "Agreement" means the Hartmarx Deferral Election Agreement,
       executed between a Participant and the Company, whereby a Participant
       agrees to participate in the Plan and to defer a portion of his or her
       Salary or Bonus (as the case may be) or both, pursuant to the provisions
       of the Plan, and the Company agrees to pay benefits in accordance with
       the provisions of the Plan and Agreement. Subject to the limitations of
       Section 3.3, a Participant may file an Agreement for each Plan Year in
       accordance with Section 3.2.

       2.3  "Beneficiary" means the person, persons or trust designated
       Beneficiary pursuant to Section 4.11.

       2.4  "Board of Directors" and "Board" mean the Board of Directors of the
       Company.
                                       1
<PAGE>

       2.5  "Bonus" means the gross annual bonus amount(s), if any, payable to a
       Participant from the Company's Management Incentive Plan or successor
       plan(s) then in effect, otherwise payable in cash during the Plan Year,
       and considered "wages" for FICA and federal income tax withholding. For
       purposes of this Section, Bonus amounts considered shall exclude
       reimbursements or other expense allowances (whether or not includable in
       gross income, and including but not limited to car allowances), (cash or
       noncash) fringe benefits (including but not limited to contest prizes),
       moving expenses, deferred compensation (other than Participant
       contributions made under this Plan), welfare benefits (including but not
       limited to imputed income on life insurance coverage, unused and/or
       accrued vacation pay and severance pay), and any distribution of stock
       (excluding proceeds from any stock options, stock appreciation rights, or
       any other stock or equity based management incentive plan). Bonus amounts
       considered shall include any amounts by which the Participant's Bonus is
       reduced by a bonus reduction or similar arrangement under any qualified
       plan described in IRC 401(k) or any cafeteria plan (as described in IRC
       125) maintained by the Company.

       2.6  "Change of Control" means the first to occur of any of the following
       events:

            (a) Any Person, other than a trustee or other fiduciary holding
       securities under an employee benefit plan of the Company, is or becomes
       the beneficial owner, as defined in Rule 13d-3 under the Securities
       Exchange Act of 1934, as amended (the "1934 Act"), directly or
       indirectly, of securities of the Company representing 25% or more of the
       combined voting power of the Company's then outstanding securities; or

            (b) During any period of two consecutive years, individuals who at
       the beginning of such period constitute the Board and any new director
       whose election by the Board or nomination for election by the
       stockholders of the Company was approved by a vote of at least two-thirds
       of the directors who were directors at the beginning of the period, cease
       for any reason to constitute a majority thereof; or

            (c) The business of the Company is disposed of pursuant to a partial
       or complete liquidation of the Company, a sale of all or substantially
       all of its assets (including stock of its subsidiaries), or otherwise.

       2.7  "Committee" means the Compensation and Stock Option Committee of the
       Board, or successor thereto, as determined by the Board.

       2.8  "Company" means Hartmarx Corporation, a Delaware corporation, its
       successors and assigns, and any affiliated companies which grant
       participation hereunder to an employee with the Company's consent.

       2.9  "Compensation" means cash remuneration paid pursuant to this Plan
       for services rendered prior to the date paid.


                                       2
<PAGE>

      2.10 "Deferred Benefit Account" and "Account" mean the separate
      bookkeeping accounting record(s) maintained by the Company for each
      Participant, pursuant to Articles III and IV. Deferred Benefit Account(s)
      shall be utilized solely as a bookkeeping device for the measurement and
      determination of the amounts to be paid to the Participant pursuant to
      this Plan, and shall be subject to Section 8.2 hereof.

      2.11  "Determination Date" means the date on which the amount of a
      Participant's Deferred Benefit Account is determined as provided in
      Article IV. The last day of each calendar quarter and the date of a
      Participant's Termination of Service shall be a Determination Date.

      2.12  "Disability" shall have the same meaning and be determined in the
      same manner as in the Hartmarx Long Term Disability Plan. In the absence
      of such a plan, "Disability" or "Disabled" shall mean a permanent
      impairment of the physical or mental condition of a Participant, which, in
      the sole discretion of the Company, prevents Participant from performance
      of the usual duties of employment attendant to the Participant's function
      with the Company. The determination of the Company as to a Disability
      shall be made on the basis of such medical and other competent evidence as
      the Company shall deem relevant, and shall be binding on Participant.

      2.13  "ERISA Funded" means that the Plan does not meet the "unfunded"
      criterion of the exceptions to the application of Parts 2 through 4 of
      Subtitle B of Title I of the Employee Retirement Income Security Act of
      1974 (ERISA).

      2.14  "Interest Crediting Rate" and "Interest" mean, for the then
      applicable Plan Year, the average rate of interest incurred by the Company
      for incremental short-term borrowing during the immediately preceding
      calendar quarter. If such rate of interest cannot be determined, or is no
      longer available, the Interest Crediting Rate shall be determined by the
      Committee.

      2.15  "IRC" means the Internal Revenue Code of 1986, as amended.

      2.16  "Participant" means an employee of the Company who is eligible to
      participate in the Plan in accordance with Section 3.1, and who enters
      into an Agreement with the Company.

      2.17  "Plan" means the Hartmarx Deferred Compensation Plan, as amended
      from time to time.

      2.18  "Plan Effective Date" means January 1, 2001.

      2.19  "Plan Year" means the calendar year.


                                       4
<PAGE>

     2.20  "Retirement Date" and "Retirement" mean the date of termination of
     service of a Participant for reasons other than death or Disability after
     he or she (i) attains age fifty-five (55) and has five (5) Years of
     Service; (ii) has attained age 65; or (iii) terminates under circumstances
     which the Committee, in its sole discretion, elects to treat as a
     Retirement for purposes of the Plan.

     2.21  "Salary" for purposes of the Plan shall be the total of the
     Participant's base salary paid during a Plan Year, and considered "wages"
     for FICA and federal income tax withholding, but before any deferral made
     pursuant to this or any other plan.  For purposes of this Section, Salary
     amounts considered shall exclude reimbursements or other expense allowances
     (whether or not includable in gross income, and including but not limited
     to car allowances), (cash or noncash) fringe benefits (including but not
     limited to contest prizes), moving expenses, deferred compensation (other
     than Participant contributions made under this Plan), welfare benefits
     (including but not limited to imputed income on life insurance coverage,
     unused and/or accrued vacation pay and severance pay), and any distribution
     of stock (excluding proceeds from any stock options, stock appreciation
     rights, or any other stock or equity based management incentive plan).
     Salary amounts considered shall include any amounts by which the
     Participant's Salary is reduced by a salary reduction or similar
     arrangement under any qualified plan described in IRC 401(k) or any
     cafeteria plan (as described in IRC 125) maintained by the Company.

     2.22  "Tax Funded" means that the interest of a Participant in the Plan
     will be includable in the gross income of the Participant for federal
     income tax purposes prior to actual receipt of Plan benefits by the
     Participant.

     2.23  "Termination of Service" means the Participant's ceasing his or her
     employment with the Company for any reason whatsoever, whether voluntarily
     or involuntarily, other than by Retirement or Disability.


III.   ELIGIBILITY AND PARTICIPATION LIMITS
       ------------------------------------

     3.1  Eligibility and Participation.  Eligibility to participate in the
          -----------------------------
     Plan shall be limited to employees of the Company who meet all of the
     following conditions:

       (a)  Each employee must be a participant in the Company's Management
     Incentive Plan, or be designated as eligible upon approval of the
     Committee; and

       (b)  Each employee designated eligible to participate must file an
     Agreement with the Company in accordance with Section 3.2.
                                       5
<PAGE>

An employee who meets all of the requirements of this Section shall become a
Participant in the Plan.  Except as otherwise provided in Section 3.4, once an
employee becomes a Participant in the Plan, he or she shall remain a Participant
until all benefit payments, if any, to the Participant (or his or her
Beneficiary) have been made.

     3.2  Deferral of Salary and Bonus.  Eligible employees of the Company who
          ----------------------------
     elect to   participate in the Plan must file an Agreement with the Company
     to participate in the Plan, and to defer Salary, Bonus, or both, prior to
     the beginning of the Plan Year in which the Salary or Bonus is to be earned
     and paid.  For the Plan Year beginning January 1, 2001, a Participant must
     elect to defer his or her Bonus otherwise payable during calendar year 2001
     prior to the end of the 2000 fiscal year.  Provided that the provisions of
     Section 3.5 are not applicable, an eligible employee who fails to file an
     Agreement before the beginning of a Plan Year may file an Agreement to
     defer Salary, Bonus, or both, with respect to a subsequent Plan Year.  A
     Participant's Agreement shall be subject to all of the limitations of
     Section 3.3.

     3.3  Deferral Limitations.  A Participant's Agreement to participate in
          --------------------
     the Plan and to defer Salary, Bonus, or both, shall be subject to the
     following limitations:

       (a)  A Participant may elect to defer no less than five percent (5%) and
           no more than twenty-five percent (25%) of Salary, in increments of
           one percentage point (1%); and

       (b)  A Participant's Agreement to defer up to one hundred percent (100%)
           of Bonus shall be in increments of ten percentage points (10%); and

       (c)  The Agreement shall be irrevocable upon acceptance by the Company.

     3.4  Suspension of Agreement to Defer.  A Participant's Agreement to defer
          --------------------------------
     Salary, Bonus, or both, shall be suspended in the event that the Committee,
     in its sole discretion, reasonably determines that a Participant ceases to
     continue to meet the eligibility requirements of the Plan. In determining a
     Participant's eligibility to continue to defer Salary, Bonus, or both, the
     Committee shall consider that a Participant's Salary has been reduced, that
     he or she has had a material reduction in job responsibility, job
     description, or job duties, and such other factors as it, in its sole
     discretion, deems to be applicable to the Participant's continued
     participation in the Plan. A Participant whose Agreement has been suspended
     in accordance with this Section shall not be deemed to have incurred a
     Termination of Service, and his or her Deferred Benefit Account shall
     continue to be maintained under the terms of the Plan.

     3.5  Timing of Deferral Credits.  The amount of Salary or Bonus that a
          --------------------------
     Participant elects to defer in the Agreement shall cause an equivalent
     reduction in his or her Salary or Bonus payment, and shall be credited to
     the Participant's Deferred Benefit Account throughout the Plan Year as the
     Participant is paid (or would have been paid) the non-deferred portion of
     his or her Salary or Bonus in each Plan Year.
                                       6
<PAGE>

 IV.   BENEFITS
       --------

   4.1 Determination of Account.  As of each Determination Date, each
       ------------------------
       Participant's   Deferred Benefit Account shall consist of:

       (a) The balance of the Participant's Deferred Benefit Account as of the
           immediately preceding Determination Date, plus

       (b) The Participant's Salary or Bonus deferred pursuant to Section 3.2,
           and credited to a Participant's Account since the immediately
           preceding Determination Date in accordance with Section 3.5, less

       (c) All benefit payment(s) made to the Participant (or his or her
           Beneficiary) from such Account in accordance with this Article IV
           since the preceding Determination Date, plus

       (d) Interest credited on the average daily balance of the Deferred
           Benefit Account as of the Determination Date and since the last
           preceding Determination Date, after the Account has been adjusted for
           any additions or distributions to be credited or deducted.

      4.2  Vesting.  A Participant shall be one hundred percent (100%) vested
           -------
           in the amount of Salary and Bonus deferred and credited to his or her
           Deferred Benefit Account, including interest attributable thereto.

      4.3  Retirement Benefit. Upon a Participant's Retirement Date, the Company
           ------------------
           shall pay to the Participant, as Compensation earned prior to
           Retirement, a benefit equal to the value of his or her Deferred
           Benefit Account, determined under Section 4.1 as of the Determination
           Date coincident with or immediately following such Retirement Date.
           The form of benefit payment shall be as provided in Section 4.8. Upon
           and after such Retirement Date, the Participant shall immediately
           cease to be eligible for any benefit provided under Section 4.4, 4.5,
           4.6 or 4.7 of the Plan.

      4.4  Termination Benefit.  Upon Termination of Service of the Participant
           -------------------
           before his or her Retirement Date for reasons other than his or her
           death or Disability, the Company shall pay to the Participant, as
           Compensation earned prior to his or her Termination of Service, a
           benefit equal to the value of his or her Deferred Benefit Account,
           determined under Section 4.1 as of the date of Termination of
           Service. Unless otherwise directed by the Administration Committee,
           the termination benefit shall be payable in a lump sum. Upon a
           Termination of Service, the Participant shall immediately cease to be
           eligible for any benefit provided under Section 4.3, 4.5, 4.6 or 4.7
           of the Plan.
                                       7
<PAGE>

      4.5  Death Benefit.  Upon the death of the Participant prior to his or her
           -------------
           Termination of Service, the Company shall pay to the Beneficiary of
           the deceased Participant, as Compensation earned prior to his or her
           death, a benefit equal to the value of the Participant's Deferred
           Benefit Account, vested in accordance with Section 4.2, determined
           under Section 4.1 as of the Determination Date coincident with or
           next following the Participant's date of death. The death benefit
           shall be paid in a lump sum. Upon a Participant's death, he or she
           shall immediately cease to be eligible for any be nefit provided
           under Section 4.3, 4.4, 4.6 or 4.7 of the Plan.

      4.6  Disability Benefit.  In the event of the Disability of a Participant
           ------------------
           prior to his or her Retirement Date, the Company shall pay to the
           Disabled Participant, as Compensation earned prior to his or her
           Disability, a benefit equal to the value of his Deferred Benefit
           Account, determined under Section 4.1. Such benefit shall be payable
           in annual installments, as provided in Section 4.8, until the
           earliest of the following events:

       (a) The Participant ceases to be Disabled and resumes employment with the
   Company;

       (b) The Participant ceases to be Disabled and does not resume employment
   with the Company. If the Participant has attained his Retirement Date, he
   shall be entitled to the benefits provided for in Section 4.3. If the
   Participant has not attained his Retirement Date, the remaining value of his
   or her Deferred Benefit Account, if any, shall be paid in a lump sum as a
   Termination Benefit in the manner provided in Section 4.4.

       (c) The Participant dies.  The Deferred Benefit Account balance remaining
   shall be paid in a lump sum as provided in Section 4.5; or

       (d) The Participant's Deferred Benefit Account balance reaches zero.

   If a Disability occurs during the period elected in the Agreement, the
   Disabled Participant's Agreement shall be suspended, and further deferrals
   shall not be required during the period of Disability. Upon a written request
   by a Participant filed with the Administration Committee, the Administration
   Committee may, in its sole discretion, pay a Disability benefit equal to the
   value of the Disabled Participant's Deferred Benefit Account in a single lump
   sum payment.
                                       8
<PAGE>

         4.7 Emergency Benefit. In the event that the Administration Committee,
             -----------------
             upon written petition of the Participant, determines, in it sole
             discretion, that the Participant has suffered a severe financial
             hardship, the Company shall pay to the Participant, as soon as
             practicable following such determination, as Compensation earned
             prior to the severe financial hardship, a benefit equal to the
             amount necessary to meet the severe financial hardship not in
             excess of the value of the Participant's Deferred Benefit Account.
             For purposes of this Section, a severe financial hardship is an
             unexpected need for cash arising from an illness, casualty loss,
             sudden financial reversal or other such unforeseeable occurrence.
             Cash needs arising from events such as the purchase of a house or
             education expenses for children, shall not be considered to be the
             result of a severe financial hardship. For purposes of this
             Section, the criteria for establishing and determining a severe
             financial hardship shall be made in accordance with IRC
             401(k)(2)(b), and Internal Revenue Service Regulation 1.401(k)-
             1(d)(2)(iii)-(iv).

         4.8 Form of Benefit Payment. Upon the happening of an event described
             -----------------------
             in Section 4.3 or 4.6, the Company shall pay to the Participant (or
             his or her Beneficiary) the amount calculated in accordance with
             this Section in annual installments payable in substantially equal
             amounts, calculated and determined as follows:

       (a) An annual installment payment shall be determined for the
Participant's Deferred Benefit Account. The amount of the installment payment
shall be a fixed amount calculated to amortize the unpaid balance of the
Deferred Benefit Account balance in ten (10) equal annual installments (or, in
the Administration Committee's sole discretion, in fewer than ten (10) annual
installments), and shall be based on the Interest Crediting Rate in effect at
the time payments commence. The Administration Committee shall recompute the
amount of the installment each year to reflect actual changes in the Interest
Crediting Rate. Installment benefit payments shall cease when the Deferred
Benefit Account balance reaches zero, or with the final payment determined
hereunder.

       (b) Unless an annual payment is the final annual installment payment,
each annual installment payment shall be at least equal to $5,000.
Notwithstanding the amortization method described in Section 4.8(a) immediately
above, in the event an installment payment determined under Section 4.8(a) is
less than $5,000, the annual installment payment shall be $5,000. Annual
installment payments in the amount of $5,000 shall continue until the amount of
the installment is recomputed, as provided above, or until the remaining Account
balance is less than $5,000. Once the Account balance is less than $5,000, the
subsequent annual payment, which shall be the final payment, shall equal the
remaining Deferred Benefit Account balance.

Upon the death of a Participant after the commencement of payment of benefits in
accordance with Section 4.3, the Deferred Benefit Account remaining shall be
paid to the Beneficiary in a lump sum. Upon a written request of a Disabled
Participant, the Administration Committee may, in its sole discretion, pay the
value of a Disabled Participant's Deferred Benefit Account in a lump sum.
                                       9
<PAGE>

Upon a written request by a Participant filed with the Administration Committee
at least one year prior to January 1st of the year a retirement benefit would
otherwise commence under this Plan, the Company shall pay the value of his or
her Deferred Benefit Account in a lump sum or in fewer than ten (10) annual
installments, as requested by the Participant.

  4.9  Withholding:  Employment Taxes.  To the extent required by the law in
       ------------------------------
     effect at the time payments are made, the Company shall withhold any taxes
     required to be withheld by the federal, or any state or local government.

  4.10  Commencement of Payments.  Unless otherwise provided, payments under
        ------------------------
     this Plan shall commence or be made as soon as practicable following the
     Participant's Termination of Service, Retirement, or Disability, but in no
     event later than ninety (90) days following receipt of notice by the
     Administration Committee of an event which entitles a Participant (or a
     Beneficiary) to payments under this Plan. The date of each subsequent
     annual installment shall be on the same Determination Date each year,
     unless otherwise determined by the Administration Committee in its sole
     discretion.

   4.11  Recipients of Payments:  Designation of Beneficiary.  All payments to
         ---------------------------------------------------
     be made by the Company under the Plan shall be made to the Participant
     during his or her lifetime, provided that if the Participant dies prior to
     the commencement or completion of such payments, then all subsequent
     payments under the Plan shall be made by the Company to the Beneficiary or
     Beneficiaries determined in accordance with this Section 4.11. The
     Participant shall designate a Beneficiary by filing a written notice of
     such designation with the Administration Committee in such form as the
     Administration Committee requires, and may change such designation without
     the consent of such Beneficiary or Beneficiaries by filing a new
     designation in writing with the Administration Committee. (In community
     property states, the spouse of a married Participant shall join in any
     designation of a Beneficiary other than the spouse.) If no designation
     shall be in effect at the time when any benefits payable under this Plan
     shall become due, the Beneficiary shall be the Beneficiary designated by
     the Participant in the 401(k) Plan, and otherwise shall be the executor(s)
     or administrator(s) of the deceased Participant's estate.

   4.12  Facility of Payment.  Any benefit payable hereunder to any person under
         -------------------
     a legal   disability, or to any person who, in the judgement of the
     Administration Committee, is unable to properly administer his or her
     financial affairs, may be paid to the legal representative of such person,
     or may be applied for the benefit of such person in a manner which the
     Administration Committee may select.
                                      10
<PAGE>

   V.  CLAIM FOR BENEFITS PROCEDURE
       ----------------------------

   5.1  Claim for Benefits.  Any claim for benefits under the Plan shall be made
        ------------------
     in writing   to the Administration Committee.  If such claim for benefits
     is wholly or partially denied by the Administration Committee, the
     Administration Committee shall, within a reasonable period of time, but not
     later than sixty (60) days after receipt of the claim, notify the claimant
     of the denial of the claim.  Such notice of denial shall be in writing and
     shall contain:

       (a)  The specific reason or reasons for denial of the claim;

       (b)  A reference to the relevant Plan provisions upon which the denial is
            based;

       (c)  A description of any additional material or information necessary
            for the claimant to perfect the claim, together with an explanation
            of why such material or information is necessary; and

       (d)  An explanation of the Plan's claim review procedure.

       5.2 Request for Review of a Denial of a Claim for Benefits. Upon the
           ------------------------------------------------------
     receipt by the claimant of written notice of denial of the claim, the
     claimant may within ninety (90) days file a written request to the
     Administration Committee, requesting a review of the denial of the claim,
     which review shall include a hearing if deemed necessary by the
     Administration Committee. In connection with the claimant's appeal of the
     denial of his or her claim, he or she may review relevant documents and may
     submit issues and comments in writing.

       5.3  Decision Upon Review of Denial of Claim for Benefits.  The
            ----------------------------------------------------
     Administration Committee shall render a decision on the claim review
     promptly, but no more than sixty (60) days after the receipt of the
     claimant's request for review, unless special circumstances (such as the
     need to hold a hearing) require an extension of time, in which case the
     sixty (60) day period shall be extended to one hundred-twenty (120) days.
     Such decision shall:

       (a)  Include specific reasons for the decision;

       (b)  Be written in a manner calculated to be understood by the claimant;
            and

       (c)  Contain specific references to the relevant Plan provisions upon
            which the decision is based.

     The decision of the Administration Committee shall be final and binding in
     all respects on both the Company and the claimant.
                                      11
<PAGE>

 VI.  ADMINISTRATION
      --------------

   6.1 Plan Administration Committee.  The Plan shall be administered by the
       -----------------------------
     Plan   Administration Committee of the Company, which shall be the
     Administration Committee of the Plan.  The Administration Committee may
     assign duties to an officer or other employees of the Company and delegate
     such duties as it sees fit.

   6.2 General Rights, Powers and Duties of Administration Committee.  The Plan
       -------------------------------------------------------------
     Administration Committee shall be responsible for the management, operation
     and administration of the Plan.  In addition to any powers, rights, and
     duties set forth elsewhere in the Plan, it shall have the following powers
     and duties to:

          (a)  Adopt, alter, and repeal such rules, regulations, guidelines, and
               practices consistent with the provisions of the Plan as it deems
               necessary for the proper and efficient administration of the
               Plan;

          (b)  Administer the Plan in accordance with its terms and any rules
               and regulations it establishes;

          (c)  Maintain records concerning the Plan sufficient to prepare
               reports, returns and other information required by the Plan or by
               law;

          (d)  Construe and interpret the Plan, and to resolve all questions
               arising under the Plan;

          (e)  Direct the Company to pay benefits under the Plan, and to give
               such other directions and instructions as may be necessary for
               the proper administration of the Plan;

          (f)  Employ or retain agents, attorneys, actuaries, accountants or
               other persons who may also be employed by or represent the
               Company; and

          (g)  Be responsible for the preparation, filing, and disclosure on
               behalf of the Plan of such documents and reports as are required
               by any applicable federal or state law.

   6.3 Information to be Furnished to Administration Committee.  The records of
       -------------------------------------------------------
     the   Company shall be determinative of each Participant's period of
     employment, age, Termination of Service and reason therefor, Disability,
     leave of absence, reemployment, personal data, and Salary and Bonus.
     Participants and their Beneficiaries shall furnish to the Administration
     Committee such evidence, data or information, and execute such documents as
     the Administration Committee requests.
                                      12
<PAGE>

   6.4 Responsibility.  No member of the Administration Committee or the
       --------------
     Committee shall be liable to any person for any action taken or omitted in
     connection with the administration of this Plan unless attributable to his
     or her own fraud or willful misconduct; nor shall the Company be liable to
     any person for any such action unless attributable to fraud or willful
     misconduct on the part of a director, officer or employee of the Company.
     Further, the Company shall hold harmless and defend any individual in the
     employment of the Company and any Director of the Company against any
     claim, action or liability asserted against him or her in connection with
     any action or failure to act regarding the Plan, except as and to the
     extent such liability may be based upon the individual's own willful
     misconduct or fraud. This indemnification shall not duplicate, but may
     supplement, any coverage available under any applicable insurance coverage.


 VII.  AMENDMENT AND TERMINATION
       -------------------------

   7.1 Termination or Amendment.  The Plan may be terminated, or amended in
       ------------------------
     whole or in part, by the Committee at any time. Notice of termination or of
     any material amendment shall be given in writing to each Participant and
     each Beneficiary of a deceased Participant.

          (a)  No amendment shall retroactively decrease the balance of a
               Participant's Deferred Benefit Account or retroactively decrease
               the Interest Crediting Rate used prior to the date of the
               amendment.

          (b)  The Committee reserves the right to terminate the Plan in its
               sole discretion. In its discretion, the Committee may consider
               termination of the Plan due to any one or more of a change in the
               tax law (or regulations relating thereto), employee benefit law
               (or regulations relating thereto), a Change of Control of the
               Company, or a change of the financial condition of the Company,
               any one of which as determined by the Committee in its sole
               discretion, adversely and materially affects the economics of the
               Plan for the Company or for Participants.

   7.2 Special Termination.  Any other provision of the Plan to the contrary
       -------------------
notwithstanding, the Plan shall terminate if the Plan is held to be ERISA Funded
or Tax Funded by a federal court, and appeals from that holding are no longer
timely or have been exhausted. The Company may terminate the Plan if it
determines, based on a legal opinion which is satisfactory to the Company, that
either judicial authority or the opinion of the U.S. Department of Labor,
Treasury Department or Internal Revenue Service (as expressed in proposed or
final regulations, advisory opinions or ruling, or similar administrative
announcements) creates a significant risk that the Plan will be held to be ERISA
Funded or Tax Funded, and failure to so terminate the Plan could subject the
Company or the Participants to material penalties. Upon any such termination,
the Company may:
                                      13
<PAGE>

            (a)  Transfer the rights and obligations of the Participants and the
          Company to a new plan established by the Company, which is not deemed
          to be ERISA Funded or Tax Funded, but which is similar in all other
          respect to this Plan, if the Company determines that it is possible to
          establish such a Plan;

            (b)  If the Company, in its sole discretion, determines that it is
          not possible to establish the Plan in (a) above, each Participant
          shall be paid a lump sum benefit equal to the value of the vested
          portion of his or her Deferred Benefit Account;

            (c)  Pay a lump sum benefit equal to the value of the vested portion
          of the Participant's Deferred Benefit Account to the extent that a
          federal court has held that the interest of the Participant in the
          Plan is includable in the gross income of the Participant for federal
          income tax purposes prior to actual payment of Plan benefits. The
          value of any amount remaining in the Participant's Deferred Benefit
          Account shall be remain as an obligation of the Company, to be paid to
          the Participant as provided in the Plan;

            (d)  Pay to a Participant a lump sum benefit equal to the vested
          portion of a Participant's Deferred Benefit Account if, based on a
          legal opinion satisfactory to the Company, there is a significant risk
          that such Participant will be determined not to be part of a "select
          group of management or highly compensated employees" for purposes of
          ERISA.

     Any benefit payable under this Section shall be payable in a lump sum as
     soon as practicable following the Company's determination that the Plan is,
     or is likely to be held to be, ERISA Funded or Tax Funded, but in no event
     later than ninety (90) days following receipt of notice by the Committee
     that the Plan is ERISA Funded or Tax Funded, or at such other date as may
     be determined by the Committee in its sole discretion.


VIII.  MISCELLANEOUS
       -------------

   8.1 Separation of Plan:  No Implied Rights.  The Plan shall not operate to
       --------------------------------------
   increase any benefit payable to or on behalf of a Participant (or his or her
   Beneficiary) from any other Plan maintained by the Company. Neither the
   establishment of the Plan nor any amendment thereof shall be construed as
   giving any Participant, Beneficiary, or any other person any legal or
   equitable right unless such right shall be specifically provided for in the
   Plan or conferred by specific action of the Company in accordance with the
   terms and provisions of the Plan. Except as expressly provided in this Plan,
   the Company shall not be required or be liable to make any payment under this
   Plan.
                                      14
<PAGE>

   8.2 No Right to Company Assets.  Neither the Participant nor any other person
       --------------------------
     shall   acquire by reason of the Plan any right in or title to any assets,
     funds or property of the Company whatsoever, including without limiting the
     generality of the foregoing, any specific funds, assets or other property
     which the Company, in its sole discretion, may set aside in anticipation of
     a liability hereunder.  Any benefits which become payable hereunder shall
     be paid from the general assets of the Company.  The Participant shall have
     only a contractual right to the amounts, if any, payable hereunder,
     unsecured by any asset of the Company.  Nothing contained in the Plan
     constitutes a guarantee by the Company that the assets of the Company shall
     be sufficient to pay any benefits to any person.

   8.3 No Employment Rights.  Nothing herein shall constitute a contract of
       --------------------
     employment or of continuing service or in any manner obligate the Company
     to continue the services of the Participant, or obligate the Participant to
     continue in the service of the Company, or as a limitation of the right of
     the Company to discharge any of its employees, with or without cause.
     Nothing herein shall be construed as fixing or regulating the Salary,
     Bonus, or other remuneration payable to the Participant.

   8.4 Offset.  If, at the time payments or installments of payments are to be
       ------
     made   hereunder, the Participant or the Beneficiary or both are indebted
     or obligated to the Company, then the payments remaining to be made to the
     Participant or the Beneficiary or both may, at the discretion of the
     Company, be reduced by the amount of such indebtedness or obligation,
     provided, however, that an election by the Company not to reduce any such
     payment or payments shall not constitute a waiver of its claim, or prohibit
     or otherwise impair the Company's right to offset future payments for such
     indebtedness or obligation.

   8.5 Protective Provisions.  In order to facilitate the payment of benefits
       ---------------------
     hereunder, each employee designated eligible shall cooperate with the
     Company by furnishing any and all information requested by the Company,
     including taking such physical examinations as the Company may deem
     necessary, and taking such other actions as may be requested by the
     Company. If the employee refuses to cooperate, he or she shall not become a
     Participant in the Plan and the Company shall have no further obligation to
     him or her under the Plan. In such event, the Participant or his or her
     Beneficiary shall receive a benefit equal to his or her deferral, including
     interest, paid in accordance with Section 4.4.

   8.6 Non-Assignability.  Neither the Participant nor any other person shall
       -----------------
     have any   voluntary or involuntary right to commute, sell, assign, pledge,
     anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey
     in advance of actual receipt the amounts, if any, payable hereunder, or any
     part thereof, which are expressly declared to be unassignable and non-
     transferrable except by will or in accordance with the laws of descent and
     distribution.  No part of the amounts payable shall be, prior to actual
     payment, subject to seizure or sequestration for the payment of any debts,
     judgements, alimony or separate maintenance owed by the Participant or any
     other person, or be transferrable by operation of law in the event of the
     Participant's or any other person's bankruptcy or insolvency.

                                      15
<PAGE>

   8.7 Notice.  Any notice required or permitted to be given under the Plan
       ------
     shall be   sufficient if in writing and hand delivered, or sent by
     registered or certified mail to the last known address of the Participant
     if to the Participant, or, if given to the Company, to the principal office
     of the Company, directed to the attention of the Committee.  Such notice
     shall be deemed given as of the date of delivery, or, if delivery is made
     by mail, as the date shown on the postmark or the receipt for registration
     or certification.

   8.8 Governing Laws.  The Plan shall be construed and administered according
       --------------
     to the laws of the State of Illinois.



     IN WITNESS WHEREOF, the Company has adopted the Hartmarx Deferred
     Compensation Plan as of the Plan Effective Date.

                                 HARTMARX CORPORATION


                                 By
                                      -----------------------------------------

                                 Its         VP-Compensation & Benefits
                                      -----------------------------------------

                                 Date      October 1, 2000
                                      -----------------------------------------