Document:

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                                                                   EXHIBIT 4-C-7
                                                                   -------------

                                                                  EXECUTION COPY

                              HARTMARX CORPORATION

            SEVENTH AMENDMENT AND WAIVER TO THE AMENDED AND RESTATED
                                CREDIT AGREEMENT

                  This SEVENTH AMENDMENT AND WAIVER TO THE AMENDED AND RESTATED
CREDIT AGREEMENT (this "Agreement") is dated as of December 13, 2001 and entered
into by and among HARTMARX CORPORATION, a Delaware corporation ("Borrower"), the
LENDERS LISTED ON THE SIGNATURE PAGES HEREOF (each individually referred to as a
"Lender" and collectively as "Lenders"), GENERAL ELECTRIC CAPITAL CORPORATION,
as Managing Agent and Collateral Agent for Lenders ("Managing Agent"), and THE
BANK OF NEW YORK and BANK OF AMERICA, N.A., as co-agents (collectively, the
"Co-Agents"), and, for purposes of Sections 4 and 5 hereof, the GUARANTORS
IDENTIFIED ON THE SIGNATURE PAGES HEREOF (collectively the "Guarantors"), and is
made with reference to that certain Amended and Restated Credit Agreement dated
as of August 18, 1999 among Borrower, Lenders, Managing Agent and Co-Agents (as
amended, the "Credit Agreement"; capitalized terms used herein without
definition shall have the same meanings herein as set forth in the Credit
Agreement). Unless otherwise indicated, Section and subsection references
contained herein shall be to the corresponding Sections and subsections of the
Credit Agreement.

                                    RECITALS

                  WHEREAS, the Borrower (i) was not able to timely deliver to
the Managing Agent on or prior to October 26, 2001, as required by Section 6.14A
                                                                   -------------
of the Credit Agreement, a fully executed and notarized Mortgage relating to the
Easton, Pennsylvania property, which failure resulted in an Event of Default
under Section 8.3 of the Credit Agreement, (ii) was not able to timely deliver
      -----------
to the Managing Agent on or prior to October 26, 2001, as required by Section
                                                                      -------
6.15 of the Credit Agreement, a copy of a bona fide proposal letter or letter of
----
interest, in form and substance acceptable to the Managing Agent, to provide not
less than $25,000,000 of Additional Liquidity Proceeds by a Person with the
financial ability to provide such Additional Liquidity Proceeds, which failure
resulted in an Event of Default under Section 8.3 of the Credit Agreement, (iii)
                                      -----------
was not able to deliver to the Managing Agent on or prior to November 26, 2001,
as required by Section 6.15 of the Credit Agreement, a copy of a binding
               ------------
commitment letter, in form and substance acceptable to the Managing Agent, to
provide not less than $25,000,000 of Additional Liquidity Proceeds by a Person
with the financial ability to provide such Additional Liquidity Proceeds, which
failure resulted in an Event of Default under Section 8.3 of the Credit
                                              -----------
Agreement, (iv) may be unable to pay the principal or interest due and payable
on January 15, 2002 with respect to the Senior Subordinated Notes, which failure
would result in an Event of Default under Section 8.2 of the Credit Agreement,
                                          -----------
(v) was unable to comply with Section 5.8A of the Credit Agreement by reason of
                              ------------
the Events of Default described in this paragraph, which failure itself resulted
in an Events of Default under Section 8.4 of the Credit Agreement (such Events
of Default, together with the Events of Default described in clauses (i) through
(iv) of this paragraph, being hereinafter collectively referred to as the
"Specified Direct Defaults"), and (vi) the occurrence and continuation of the
Specified Direct Defaults constitute

<PAGE>

events of default under both the Canadian Credit Agreement and the Indiana Real
Estate Financing, which events of default constitute Events of Default under
Section 8.2 of the Credit Agreement (the "Cross Defaults," and collectively with
the Specified Direct Defaults, the "Specified Defaults");

                  WHEREAS, the Borrower has informed the Agents and the Lenders
that it desires to exchange all of the existing Senior Subordinated Notes for a
cash payment by the Borrower and its issuance of "New Senior Subordinated Notes"
(as defined herein) to the holders of the existing Senior Subordinated Notes
upon the terms and conditions satisfactory to the Managing Agent and the
Requisite Lenders hereby; and

                  WHEREAS, the Borrower has requested that the Requisite Lenders
(i) waive the Specified Defaults, (ii) permit the Borrower's proposed exchange
of Senior Subordinated Notes for cash and New Senior Subordinated Notes and
(iii) amend certain provisions of the Credit Agreement as set forth herein, and,
subject to the terms and conditions of this Agreement, the Requisite Lenders
have agreed to such requests.

                  NOW, THEREFORE, in consideration of the foregoing premises,
the terms and conditions stated herein and other valuable consideration, the
receipt and sufficiency of which is hereby acknowledged by the Borrower, the
Requisite Lenders and the Managing Agent, such parties hereby agree as follows:

                  SECTION 1. Amendment to Credit Agreement. Subject to the
                             -----------------------------
satisfaction of each of the conditions set forth in Section 3 of this Agreement,
the Credit Agreement is hereby amended as follows (unless otherwise specified,
section, article, exhibit and schedule references refer to sections, articles,
exhibits and schedules of the Credit Agreement):

         A.  Amendments to Subsection 1.1.
         ---------------------------------

                  (i) Subsection 1.1 is amended by adding the following
                      --------------
definitions to such section in their respective applicable alphabetical
locations:

                  "Additional Liquidity Proceeds" has the meaning set forth in
         subsection 6.15 hereof.

                  "Approved Exchange Offer" means an exchange of all or a
         portion of the Senior Subordinated Notes for a cash payment by the
         Borrower and its issuance of New Senior Subordinated Notes to the
         holders of the Senior Subordinated Notes pursuant to terms and
         conditions approved in writing by the Requisite Lenders.

                  "Liquidity Proceeds" has the meaning set forth in subsection
         6.15 hereof.

                  "New Senior Subordinated Notes" means senior subordinated
         notes issued by the Borrower pursuant to an Approved Exchange Offer.

                  "New Subordinated Note Indenture" means an indenture pursuant
         to which the Borrower issued or is to issue New Senior Subordinated
         Notes.

                                       2

<PAGE>
                  "Seventh Amendment" shall mean that certain Seventh Amendment
and Waiver to Amended and Restated Credit Agreement dated as of December 13,
2001 by and among Borrower, Managing Agent, Co-Agents and Lenders.

                  (ii) Subsection 1.1 of the Credit Agreement is hereby further
amended by deleting the following definitions in their entirety and substituting
the following therefor:

                  "Related Documents" means, collectively, (i) the New Senior
         Subordinated Notes, (ii) the New Subordinated Note Indenture, (iii) the
         Senior Subordinated Notes, (iv) the Subordinated Note Indenture, (v)
         the Existing EDBs, (vi) the ESOP Loan Documents, (vii) the Coppley
         Documents and (viii) the Refinancing Debt Documents."

                  "Required Excess Availability Amount" shall mean the Excess
         Availability amount required to be maintained by the Borrower as set
         forth below opposite the applicable period:

        ------------------------------------------ ----------------------------
                             Period                    Required Excess
                                                       Availability Amount
        ------------------------------------------ ----------------------------
        December 13, 2001 - January 14, 2002       $15 Million
        ------------------------------------------ ----------------------------
        January 15, 2001 and thereafter            $10 Million
        ------------------------------------------ ----------------------------

                  (iii) Subsection 1.1 of the Credit Agreement is hereby further
                        --------------
amended by deleting the definition of "Subordinated Indebtedness" in its
entirety and substituting the following therefor:

                  "Subordinated Indebtedness" means (i) the Indebtedness of
         Borrower evidenced by the Senior Subordinated Notes, (ii) the
         Indebtedness of Borrower evidenced by the New Senior Subordinated Notes
         and (iii) any other Indebtedness of Borrower (including without
         limitation any subordinated Refinancing Indebtedness) subordinated in
         right of payment to the Obligations pursuant to documentation
         containing maturities, amortization schedules, covenants, defaults,
         remedies, subordination provisions and other material terms in form and
         substance satisfactory to Managing Agent and Requisite Lenders.

         B.  Amendments to Subsection 2.3.
         ---------------------------------

                  (i)      Subsection 2.3A is amended by deleting in its
                           ---------------
entirety the last full sentence thereof and substituting the following therefor:

         "Each of the above commitment fees shall be calculated on the basis of
         a 360-day year and the actual number of days elapsed and shall be
         payable (i) with respect to fees accruing on or prior to January 1,
         2002, quarterly in arrears on April 1, July 1, October 1 and January 1,
         (ii) with respect to fees accruing after January 1, 2002, monthly in
         arrears on the first day of each calendar month commencing thereafter,
         and (iii) on the Commitment Termination Date."

                                       3

<PAGE>
                  (ii)     Subsection 2.3B is amended by deleting in its
                           ---------------
entirety such section and substituting the following therefor:

                  "B. Annual Administrative Fee. Borrower agrees to pay to
         Managing Agent an annual administrative fee in the amount of $50,000,
         payable (i) quarterly in advance on April 1, July 1, October 1 and
         January 1 with respect to fees due on or prior to January 1, 2002, and
         (ii) with respect to fees due after January 1, 2002, annually in
         advance on the first day of each April, commencing with April 1, 2002."

                  (iii) Subsection 2.3C is amended by deleting in its entirety
                        ---------------
such section and substituting the following therefor:

                  "C. Collateral Agent Fee. Borrower agrees to pay to Collateral
         Agent an annual collateral agent's fee equal to $50,000 per year,
         payable (i) quarterly in advance on April 1, July 1, October 1 and
         January 1 with respect to fees accruing on or prior to January 1, 2002,
         and (ii) with respect to fees due after January 1, 2002, annually in
         advance on the first day of each April, commencing with April 1, 2002."

         C.  Amendments to Subsection 2.4A(iii)(d)
         -----------------------------------------

                  (i) Subsection 2.4A(iii)(d) is hereby amended by deleting such
subsection in its entirety and substituting the following therefor:

                  "(d) Prepayments from Liquidity Proceeds and Additional
                       --------------------------------------------------
         Liquidity Proceeds. Immediately upon receipt by Borrower of Liquidity
         ------------------
         Proceeds or Additional Liquidity Proceeds pursuant to subsection 6.15
         prior to June 30, 2002, except for such Additional Liquidity Proceeds
         as are deemed to have been received by Borrower upon consummation of an
         Approved Exchange Offer, Borrower shall prepay the Swing Line Loans and
         the Revolving Loans in an amount equal to such proceeds. Any mandatory
         prepayment of the Loans pursuant to this subsection 2.4A(iii)(d) shall
         be applied as provided in subsection 2.4A(iv), except that the
         Revolving Loan Commitments will not be reduced as a result of such
         prepayment."

         D.  Amendments to Subsection 3.2
         --------------------------------

                  (i) Subsection 3.2(i) is hereby amended by deleting such
subsection in its entirety and substituting the following therefor:

         "(i) with respect to each Financial Standby Letter of Credit, (a) a
         fronting fee equal to 0.25% of the aggregate maximum amount available
         to be drawn under such Financial Standby Letter of Credit and (b) a
         letter of credit fee equal to the Applicable Margin that would be
         applicable to LIBOR Rate Loans made during such period (regardless of
         whether LIBOR Rate Loans are in fact made during such period), changing
         as and when such Applicable Margin changes, multiplied by the average
         daily maximum amount available to be drawn under such Financial Standby
         Letter of Credit, in each case computed on the basis of a 360-day year
         for the actual number of days elapsed and payable (i) quarterly in
         arrears on April 1, July 1, October 1 and January 1 with respect to
         fees accruing on or prior to January 1, 2002, and (ii) with respect to
         fees accruing after

                                       4

<PAGE>

         January 1, 2002, monthly in arrears on the first day of each calendar
         month, commencing with February 1, 2002."

                  (ii) Subsection 3.2(ii) is hereby amended by deleting such
subsection in its entirety and substituting the following therefor:

         "(ii) with respect to each Nonfinancial Standby Letter of Credit, (a) a
         fronting fee equal to 0.25% of the aggregate maximum amount available
         to be drawn under such Nonfinancial Standby Letter of Credit and (b) a
         letter of credit fee equal to the Applicable Margin that would be
         applicable to LIBOR Rate Loans made during such period (regardless of
         whether LIBOR Rate Loans are in fact made during such period), changing
         as and when such Applicable Margin changes, less 0.50% per annum
         multiplied by the average daily maximum amount available to be drawn
         under such Nonfinancial Standby Letter of Credit, in each case computed
         on the basis of a 360-day year for the actual number of days elapsed
         and payable (i) quarterly in arrears on April 1, July 1, October 1 and
         January 1 with respect to fees accruing on or prior to January 1, 2002,
         and (ii) with respect to fees accruing after January 1, 2002, monthly
         in arrears on the first day of each calendar month, commencing with
         February 1, 2002."

         E.  Amendments to Subsection 5.2.

                  (i)      Subsection 5.2E is amended by deleting such section
                           ---------------
 in its entirety and substituting the following therefor:

                  "E. Valid Issuance of Senior Subordinated Notes and New Senior
         Subordinated Notes. Borrower has the corporate power and authority to
         issue the Senior Subordinated Notes and the New Senior Subordinated
         Notes. The Senior Subordinated Notes and the New Senior Subordinated
         Notes, when issued and paid for, will be the legally valid and binding
         obligations of Borrower, enforceable against Borrower in accordance
         with their respective terms, except as may be limited by bankruptcy,
         insolvency, reorganization, moratorium or similar laws relating to or
         limiting creditors' rights generally or by general equitable principles
         whether enforcement is sought in equity or at law. The Loans, Letters
         of Credit and all other Obligations hereunder are and will be within
         the definitions of "Senior Debt" included in each of the Subordinated
         Note Indenture and, upon the effectiveness thereof, the New
         Subordinated Note Indenture and are (or in the case of the New
         Subordinated Note Indenture will be) the only liabilities that
         constitute "Designated Senior Debt" as defined therein. The Senior
         Subordinated Notes and the New Senior Subordinated Notes, when issued
         and sold, will either (a) have been registered or qualified under
         applicable federal and state securities laws or (b) be exempt from
         registration thereunder."

         F.  Amendments to Section 4.
         --  ------------------------

                  (i)      Subsections 4.2B(ii) and 4.4C(v) are each amended to
                           --------------------     -------
 add the following phrase at the end of each such subsection:

         "other than a `Specified Default' during the `Forbearance Period' as
         such terms are defined in the Seventh Amendment."

                                       5

<PAGE>
         G.  Amendment to Subsection 5.8A.
         --------------------------------

                  (i)      Subsection 5.8A is amended to add the following
                           ---------------
phrase at the end of such subsection:

         "and except the occurrence of `Specified Defaults' during the
         `Forbearance Period' as such terms are defined in the Seventh
         Amendment."

         H.  Amendments to Subsection 6.15.

                  (i)      Subsection 6.15 is amended by deleting the first
                           ---------------
 paragraph thereof in its entirety and to substituting the following therefor:

                  "During the period from the Third Amendment Effective Date to
         June 30, 2002, Borrower shall receive not less than $10,000,000 of net
         cash proceeds from any of the following transactions in the aggregate
         (such proceeds in the aggregate, received from such sources, whether
         received on, prior to or after such date and prior to June 30, 2002,
         being the "Liquidity Proceeds"): (i) Indebtedness secured by Liens on
         any of the properties listed in Exhibit B to the Third Amendment and
         permitted under subsection 7.1(xv) hereof, (ii) the sale of the capital
         stock of Austin Reed or other Asset Sales permitted under subsection
         7.7 hereof, (iii) the issuance by Borrower of its common or preferred
         equity securities pursuant to documentation delivered to Managing Agent
         and Lenders and in form and substance satisfactory to Managing Agent;
         provided that all net cash proceeds from all transactions described in
         --------
         this sentence of subsection 6.15 shall be immediately applied to repay
         Loans in accordance with this Agreement; provided further, for purposes
                                                  ----------------
         of this sentence, all Additional Liquidity Proceeds received in excess
         of $25,000,000 shall be deemed to be Liquidity Proceeds, it being
         agreed and understood that, for purposes hereof, upon consummation of
         an Approved Exchange Offer, the Borrower shall be deemed to have
         received Additional Liquidity Proceeds in an amount equal to the
         outstanding principal amount of Senior Subordinated Notes exchanged and
         cancelled pursuant to such transaction. In addition to the receipt of
         Liquidity Proceeds as provided in the preceding sentence, during the
         period from the Sixth Amendment Effective Date to January 31, 2002
         (such proceeds in the aggregate, received from such sources, excluding
         any Liquidity Proceeds, the "Additional Liquidity Proceeds") (i)
         Borrower shall receive not less than $25,000,000 of net cash proceeds
         from the issuance by Borrower of its common or preferred equity
         securities pursuant to documentation delivered to Managing Agent and
         Lenders and in form and substance satisfactory to Managing Agent or
         from the issuance of Refinancing Indebtedness or (ii) Borrower shall
         have consummated an Approved Exchange Offer. The Borrower hereby
         represents and warrants that it has received $4,306,022.66 of Liquidity
         Proceeds contemplated by this subsection 6.15 on or prior to December
         10, 2001."

         I.  Amendments to Section 7.
         ----------------------------

                  (i)      Subsection 7.1(x) is amended by deleting such
subsection in its entirety and to substituting the following therefor:

                                       6

<PAGE>

         "(x)     Borrower may remain liable in respect of the Senior
         Subordinated Notes and the New Senior Subordinated Notes;"

                  (ii) Subsection 7.5 is amended to add the parenthetical
                       --------------
"(except with respect to Restricted Junior Payments under clauses (ii), (iii)
and (vii) below)" immediately prior to the phrase in the proviso thereof "as
                                                         -------
long as no Event of Default or Potential Event of Default has occurred and is
continuing, or would result therefrom".

                  (iii) Subsection 7.5 is further amended by deleting clause
                        --------------
(ii) of such subsection in its entirety and to substituting the following
therefor:

         "(ii) make regular scheduled interest payments on the Senior
         Subordinated Notes and the New Senior Subordinated Notes;"

                  (iv) Subsection 7.5 is further amended by deleting clause
                       --------------
(iii) of such subsection in its entirety and to substituting the following
therefor:

         "(iii) consummate an Approved Exchange Offer;"

                  (v) Subsection 7.5 is further amended by deleting clauses (vi)
and (vii) of such subsection in their entirety and to substituting the following
therefor:

         "(vi) repay the Senior Subordinated Notes in an aggregate amount not to
         exceed $8,000,000 with the proceeds of Indebtedness received on or
         prior to December 13, 2001 and secured by Liens on any of the
         properties listed on Exhibit B to the Third Amendment permitted under
         subsection 7.1(xv) hereof; and (vii) in addition to transactions
         permitted by the foregoing clauses, use cash on hand to pay the
         outstanding principal balance and accrued interest with respect to the
         Senior Subordinated Notes which is due and payable at their final
         maturity, or to repurchase such Senior Subordinated Notes; provided
                                                                    --------
         that (x) an Approved Exchange Offer has been consummated or is being
         consummated concurrently with such payments or repurchases and (y)
         Excess Availability as of the date of such payment or repurchase shall
         not be less than the Required Excess Availability Amount (after giving
         effect to such payments or repurchases); provided further that on or
                                                  ----------------
         prior to the date of any such payments or repurchases, the Managing
         Agent shall have received an Officer's Certificate of Borrower, in form
         and substance satisfactory to Managing Agent, confirming such Excess
         Availability and the satisfaction of any other requirements of this
         subsection 7.5(vii), in reasonable detail as of such date."

                  (vi)     Subsection 7.6C is amended by deleting such
                           ---------------
subsection in its entirety and substituting the following therefor:

         "C. Minimum Consolidated Adjusted EBITDA. Borrower shall not permit its
         Consolidated Adjusted EBITDA for the period commencing on September 1,
         2001 and ending as of the last day of any month set forth below to be
         less (or, in the case of a loss, to be a greater loss) than the
         correlative amount indicated:

                                       7

<PAGE>

                   ---------------------- -------------------------------------
                   Period                 Minimum Consolidated Adjusted EBITDA
                   ---------------------- -------------------------------------
                   November 30, 2001                   $2,200,000
                   ---------------------- -------------------------------------
                   December 31, 2001                  $(2,500,000)
                   ---------------------- -------------------------------------
                   January 31, 2002                    $1,300,000
                   ---------------------- -------------------------------------
                   February 28, 2002                   $6,700,000
                   ---------------------- -------------------------------------
                   May 31, 2002                       $10,500,000
                   ---------------------- -------------------------------------

         As soon as available and in any event within thirty days after the end
         of each period during which this subsection 7.6C is applicable (or, in
         the case of the period ending November 30, 2001, by January 10, 2002),
         Borrower shall deliver to Managing Agent and Lenders a compliance
         certificate in form and substance satisfactory to Managing Agent
         setting forth its Consolidated Adjusted EBITDA for the applicable
         period and stating whether or not Borrower is in compliance with this
         subsection 7.6C as of the end of such period."

                  (vii)    Section 7 is further amended by the addition of the
                           ---------
following Subsection 7.18:
          ---------------

         7.18.  Designated Senior Debt.

                  Anything in the Loan Documents or the Related Documents to the
         contrary notwithstanding, in no event shall Borrower permit any
         Indebtedness or Contingent Obligations other than the Obligations to
         constitute or be designated as "Designated Senior Debt" (as that term
         is defined in the New Subordinated Note Indenture). This subsection
         7.18 shall not be amended, modified, terminated or waived without a
         written consent signed by or on behalf of all the Lenders.

         J.  Amendment to Subsection 8.2.
         --  ----------------------------

                  (i)      Subsection 8.2(b)(iii) is amended by deleting such
                           ----------------------
subsection in its entirety and substituting the following therefor:

         "or (iii) breach or default by Borrower or any of its Subsidiaries
         under the Senior Subordinated Notes, the New Senior Subordinated Notes,
         the Subordinated Note Indenture or the New Subordinated Note Indenture
         or any of the Refinancing Debt Documents;"

         K.  Amendment to Subsection 10.21A(iv)
         --  ----------------------------------

                  (i)      Subsection 10.21A(iv) is amended by deleting in its
                           ---------------------
entirety such subsection and substituting the following therefor:

                                       8

<PAGE>

         "(iv) Notwithstanding the date, manner or order of perfection or
         recording of the security interests and Liens granted pursuant to the
         Collateral Documents, and notwithstanding any provisions of the UCC, of
         any applicable law or decision, or of the Loan Documents, or whether
         Borrower or Collateral Agent holds possession of all or any part of the
         Collateral, all right, title and interest of Borrower as a secured
         party in and to any Collateral (collectively, the "Junior Lien") is
         junior and subordinate to all rights and interests of Agents and
         Lenders therein, and that the priorities, subordinations and
         distribution arrangements specified in this Section 10.21 and the other
         provisions of this Section 10.21 with respect to any Collateral are
         expressly intended to be effective regardless of the avoidability or
         non-perfection of the security interests and Liens held by Collateral
         Agent in such Collateral, and in the event the security interests or
         Liens held by Collateral Agent in any Collateral is judicially
         determined to be unperfected or is avoided for any reason, then the
         priorities, subordinations and distribution arrangements provided for
         in this Section 10.21, shall as to the parties to this Agreement,
         remain effective as to such Collateral; provided that the Requisite
         Lenders may, at their option and at any time, waive any of the
         subordination provisions of this subsection 10.21A(iv). Borrower agrees
         that it will not challenge the legality, validity, enforceability or
         priority of the Obligations or the legality, validity, enforceability,
         perfection or priority of the Liens granted pursuant to the Collateral
         Documents as set forth herein or the rights of any secured party
         thereunder."

                  SECTION 2.        Forbearance and Waiver.
                                    ----------------------

                  (a) Upon the satisfaction of the conditions precedent set
forth in Section 3 hereof, the Managing Agent and the Requisite Lenders, on
         ---------
behalf of all Lenders, hereby agree to forebear and not take any of the
following actions as a result of the occurrence and continuance of any of the
Specified Defaults for the period beginning on the date this Agreement becomes
effective and ending immediately upon the earliest of (i) the occurrence of any
Event of Default other than any of the Specified Defaults, (ii) January 31,
2002, and (iii) the Borrower's failure to commence an Approved Exchange Offer on
or prior to December 21, 2001, or the subsequent termination or expiration of
such Approved Exchange Offer prior to its consummation, or any amendment or
modification of such Approved Exchange Offer without the prior written approval
of the Requisite Lenders (such period being hereinafter referred to as the
"Forbearance Period"): terminate any of the Commitments, commence judicial
 ------------------
enforcement proceedings against the Borrower or any of the Guarantors with
respect to the payment of any Obligations, commence any foreclosure or levy
against or seizure of all or any portion of the Collateral (other than pursuant
to Section 6.10), or apply the increased rates of interest as described in
   ------------
Subsection 2.2E of the Credit Agreement to the outstanding principal amount of
any Loans and any interest payments thereon not paid when due and any fees and
other amounts then due and payable under the Credit Agreement pursuant to
Subsection 2.2E thereof.
---------------

                  (b) The Managing Agent and the Requisite Lenders, on behalf of
all the Lenders, expressly reserve the right to exercise all remedies under the
Loan Documents and applicable law with respect to all now existing and hereafter
arising Events of Default immediately upon the expiration of the Forbearance
Period, including, without limitation, the rights and remedies identified in
clauses (1) through (4) of subsection (a) above, in respect of all Specified
-----------         ---
Defaults and any other Events of Default then existing.

                                       9

<PAGE>
                  (c) Except for the forbearance to the extent expressly set
forth above, the Managing Agent and the Requisite Lenders, on behalf of all the
Lenders, reserve each and every right and remedy they may have under the Loan
Documents and under applicable law. Nothing in this Agreement shall be deemed to
constitute a waiver by the Managing Agent or any Lender of any Event of Default,
whether now existing or hereafter arising, or of any right or remedy the
Managing Agent and the Lenders may have under any of the Loan Documents or
applicable law, except to the extent expressly forborne as set forth above in
subsection (a) or waived pursuant to subsection (d) below. In furtherance and
not in limitation of the foregoing, the Borrower acknowledges that the Managing
Agent shall have the present right to deliver to the holders of the Senior
Subordinated Notes a "Payment Notice" pursuant to Section 10.3 of the
                                                  ------------
Subordinated Note Indenture, and that, following such notice and during the
resulting "Payment Blockage Period" as defined therein, no further payments on
the Senior Subordinated Notes may be made by the Borrower or accepted by such
holders thereunder as provided therein.

                  (d) Notwithstanding the foregoing, if, prior to the expiration
of the Forbearance Period, the Borrower consummates an Approved Exchange Offer,
then, effective concurrently with such consummation, each of the Specified
Defaults shall be hereby waived by the Lenders without the requirement of any
further action by any party hereto.

                  SECTION 3. Effectiveness of the Amendment and Waiver;
                             -----------------------------------------
Conditions Precedent. The provisions of Sections 1 and 2 of this Agreement shall
--------------------                    ----------     -
become effective as of the date hereof upon the Managing Agent's receipt of each
of the following:

                  (a) originally-executed (or facsimiles of originally-executed)
counterparts of this Agreement executed and delivered by duly authorized
officers of the Borrower, each Guarantor and the Requisite Lenders;

                  (b) payment, in immediately available funds, of the amendment
fee described in that certain Fee Letter of even date herewith by and between
the Managing Agent and the Borrower, which amendment fee shall be allocated
among the Lenders who execute and deliver counterparts to this Agreement on or
before December 17, 2001 ratably based upon their relative Revolving Commitments
and interests in the outstanding Tranche C Term Loans; and

                  (c) waiver or forbearance agreements, in form and substance
acceptable to the Managing Agent, from the holders of Indebtedness issued
pursuant to the Canadian Credit Agreement and the Indiana Real Estate Financing,
effectively waiving the Cross Defaults thereunder or forbearing from their
exercise of enforcement remedies with respect thereto.

                  SECTION 4. Representations and Warranties. The Borrower and
                             ------------------------------
each Guarantor hereby represents and warrants that (a) this Agreement
constitutes its legal, valid and binding obligation, enforceable against each
such party in accordance with its terms and (b) there is no consent, approval or
other requirement known to the Borrower or such Guarantor which could reasonably
be expected to impair or materially delay the Borrower's or such Guarantor's
ability to perform its obligations under this Agreement or the Credit Agreement
as proposed to be amended hereby and (c) except for the Specified Defaults, no
Default or Event of Default exists and is continuing.

                                       10

<PAGE>

                  SECTION 5. Reaffirmation, Ratification and Acknowledgment. (a)
                             ----------------------------------------------
The Borrower and each of the Guarantors hereby (i) ratifies and reaffirms all of
its payment and performance obligations, contingent or otherwise, and each grant
of security interests and liens in favor of the Managing Agent, under each Loan
Document to which it is a party, (ii) agrees and acknowledges that such
ratification and reaffirmation is not a condition to the continued effectiveness
of such Loan Documents, and (iii) agrees that neither such ratification and
reaffirmation, nor the Managing Agent's nor any Lenders' solicitation of such
ratification and reaffirmation, constitutes a course of dealing giving rise to
any obligation or condition requiring a similar or any other ratification or
reaffirmation from the Borrower or the Guarantors with respect to any subsequent
modifications consent or waiver with respect to the Credit Agreement or other
Loan Documents. The Credit Agreement and each other Loan Document is in all
respects hereby ratified and confirmed and, except as is expressly set forth in
Section 2 hereof, neither the execution, delivery nor effectiveness of this
Agreement shall operate as a waiver of any Default or Event of Default (whether
or not known to the Managing Agent, the Collateral Agent or any Bank) or any
right, power or remedy of the Managing Agent, the Collateral Agent or any Bank
of any provision contained in the Credit Agreement or any other Loan Document,
whether as a result of any Default or Event of Default or otherwise. This
Agreement shall constitute a "Loan Document" for purposes of the Credit
Agreement.

                  (b) The Borrower and each of the Guarantors hereby
acknowledges and confirms that (i) it does not have any grounds, and hereby
agrees not to challenge (or to allege or to pursue any matter, cause or claim
arising under or with respect to), in any case based upon acts or omissions of
the Managing Agent or any of the Lenders occurring prior to the date hereof or
facts otherwise known to it as of the date hereof, the effectiveness,
genuineness, validity, collectibility or enforceability of the Credit Agreement
or any of the other Loan Documents, the Obligations, the Liens securing such
Obligations, or any of the terms or conditions of any Loan Document (it being
understood that such acknowledgement and confirmation does not preclude the
Borrower or the Guarantors from challenging the Managing Agent's or any Bank's
interpretation of any term or provision of the Credit Agreement or other Loan
Document) and (ii) it does not possess (and hereby forever waives, remises,
releases, discharges and holds harmless the Requisite Lenders, the Managing
Agent and their respective affiliates, stockholders, directors, officers,
employees, attorneys, agents and representatives and each of their respective
heirs, executors, administrators, successors and assigns (collectively, the
"Indemnified Parties") from and against, and agrees not to allege or pursue) any
action, cause of action, suit, debt, claim, counterclaim, cross-claim, demand,
defense, offset, opposition, demand and other right of action whatsoever,
whether in law, equity or otherwise (which it, all those claiming by, through or
under it, or its successors or assigns, have or may have) against the
Indemnified Parties, or any of them, by reason of, any matter, cause or thing
whatsoever, with respect to events or omissions occurring or arising on or prior
to the date hereof and relating to the Credit Agreement or any of the other Loan
Documents (including, without limitation, with respect to the payment,
performance, validity or enforceability of the Obligations, the Liens securing
the Obligations or any or all of the terms or conditions of any Loan Document)
or any transaction relating thereto; provided, however, that neither the
                                     -----------------------
Borrower nor any Guarantor hereby releases or holds harmless any Indemnified
Party for actions or omissions by any such Indemnified Party constituting, or
losses or expenses directly resulting from, the gross negligence or willful
misconduct of such Indemnified Party as determined by a final judgment of a
court of competent jurisdiction.

                                       11

<PAGE>

                  SECTION 6. Additional Liquidity Reserve. Pursuant to the
                             ----------------------------
provisions of the Credit Agreement, the Collateral Agent has established, in its
discretion, effective immediately, an additional liquidity reserve against the
Borrowing Base in the amount of $15,000,000, which reserve (based upon the
Collateral Agent's current intent and subject to its continuing discretion)
shall be reduced to $5,000,000 if and when an "Approved Exchange Offer" is
consummated (as proposed to be defined pursuant to Subsection 1.1 of this
Agreement).

                  SECTION 7.  Miscellaneous.

                  (a) Execution in Counterparts; Governing Law This Agreement
may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed to be an original and all of which when taken together shall constitute
but one and the same instrument. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

                  (b) Section Titles. The section titles contained in this
                      --------------
Agreement are and shall be without substance, meaning or content of any kind
whatsoever and are not a part of the agreement between the parties hereto.

                  (c) Managing Agent's Expense. The Borrower hereby agrees to
                      ------------------------
promptly reimburse the Managing Agent for all reasonable out-of-pocket expenses,
including, without limitation, attorneys' and paralegals fees, it has heretofore
or hereafter incurred or incurs in connection with the preparation, negotiation
and execution of this Agreement or any document, instrument, agreement delivered
pursuant to this Agreement.

                                     * * * *

                                       12

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Amendment and Waiver to
be duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

                      BORROWER:

                      HARTMARX CORPORATION

                      By:      /s/ Glenn R. Morgan
                               ----------------------------------------------
                               Glenn R. Morgan, Executive Vice President and
                               Chief Financial Officer

                      7th Amendment Signature Page, 1 of 9

<PAGE>
                                   GUARANTORS:

                              HMX Sportswear, Inc. (formerly known as
                              American Apparel Brands, Inc.)
                              Anniston Sportswear Corporation
                              Briar, Inc.
                              Consolidated Apparel Group, Inc.
                              C.M. Clothing, Inc.
                              C.M. Outlet Corp.
                              Chicago Trouser Company, Ltd.
                              Country Miss, Inc.
                              Country Suburbans, Inc.
                              Direct Route Marketing Corporation
                              E-Town Sportswear Corporation
                              Fairwood-Wells, Inc.
                              Gleneagles, Inc.
                              Handmacher Fashions Factory Outlet, Inc.
                              Handmacher-Vogel, Inc.
                              Hartmarx International, Inc.
                              Hart Schaffner & Marx
                              Hart Services, Inc.
                              Thos. Heath Clothes, Inc.
                              TAG Licensing, Inc.
                              Hickey-Freeman Co., Inc.
                              Higgins, Frank & Hill, Inc.
                              Hoosier Factories, Incorporated
                              HSM University, Inc.
                              Intercontinental Apparel, Inc.
                              International Women's Apparel, Inc.
                              Jaymar-Ruby, Inc.
                              JRSS, Inc.
                              Kuppenheimer Men's Clothiers
                              Dadeville, Inc.
                              Men's Quality Brands, Inc.
                              National Clothing Company, Inc.
                              106 Real Estate Corp.
                              Robert's International Corporation
                              SALHOLD, Inc.
                              Seaford Clothing Co.
                              Society Brand, Ltd.
                              Robert Surrey, Inc.
                              Tailored Trend, Inc.
                              Thorngate Uniforms, Inc.
                              Trade Finance International Limited
                              Universal Design Group, Ltd.
                              M. Wile & Company, Inc.

                      7th Amendment Signature Page, 2 of 9

<PAGE>
                               Winchester Clothing Company
                               Yorke Shirt Corporation

                                   By:  /s/ Glenn R. Morgan
                                        ----------------------------------------
                                         Glenn R. Morgan

                                         Vice President of each of the foregoing

                      7th Amendment Signature Page, 3 of 9

<PAGE>

                               LENDERS:

                               GENERAL ELECTRIC CAPITAL CORPORATION,
                               individually, as Managing Agent and as
                               Collateral Agent

                               By:     /s/ Michael J. McKay
                                       -----------------------------------
                               Name:   Michael J. McKay
                               Title:  Duly Authorized Signatory

                      7th Amendment Signature Page, 4 of 9

<PAGE>
                               THE BANK OF NEW YORK,

                               individually, as Co-Agent and as Issuing Lender
                               for the Letters of Credit

                               By:      /s/ Charlotte Sohn Fulks
                                        ----------------------------------------
                               Name:    Charlotte Sohn Fulks
                               Title:   Vice President

                      7th Amendment Signature Page, 5 of 9

<PAGE>
                               BANK OF AMERICA, N.A.,

                               individually and as Co-Agent

                               By:      /s/ James Gurgone
                                        ----------------------------------------
                               Name:    James Gurgone
                               Title:   Vice President

                      7th Amendment Signature Page, 6 of 9

<PAGE>
                               MANUFACTURERS AND TRADERS TRUST COMPANY

                               By:      /s/ Christopher Kania
                                        ----------------------------------------
                               Name:    Christopher Kania
                               Title:   Vice President

                      7th Amendment Signature Page, 7 of 9

<PAGE>
                               HARRIS TRUST AND SAVINGS BANK

                               By:      /s/ Ronald V. Redd
                                        --------------------------------------
                               Name:    Ronald V. Redd
                               Title:   Vice President

                      7th Amendment Signature Page, 8 of 9

<PAGE>
                               THE NORTHERN TRUST COMPANY

                               By:      /s/ O. Georgiev
                                        ----------------------------------------
                               Name:    O. Georgiev
                               Title:   Vice President

                      7th Amendment Signature Page, 9 of 9<PAGE>

                                                                  EXHIBIT 10-J-3
                                                                  --------------

                          [HARTMAX LOGO APPEARS HERE]

                           DEFERRED COMPENSATION PLAN

                            EFFECTIVE JANUARY 1, 2002

<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
executives 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

<PAGE>

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

         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, 2002.

                                       3

<PAGE>

         2.19     "Plan Year" means the calendar year.

         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.

                                       4

<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, 2002, a Participant must elect to
defer his or her Bonus otherwise payable during calendar year 2002 prior to the
end of the 2001 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.

                                       5

<PAGE>

         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.

 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

                                       6

<PAGE>

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.

         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 benefit 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.

                                       7

<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.

                                       8

<PAGE>

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.

Upon a written request by a Participant filed with the Administration Committee
at least one year prior to the date of retirement, 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.

                                       9

<PAGE>

5.        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.

                                       10

<PAGE>

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

II       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

                                       11

<PAGE>

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.

         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

                                       12

<PAGE>

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:

                  (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 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.

                                       13

<PAGE>

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.

         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.

         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     Vice President-Compensation & Benefits

                             Date    November 30, 2001
                                     -----------------------------------------

                                       14

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