AMENDMENT NO. 4 TO EMPLOYMENT AGREEMENT

     AMENDMENT  NO.  4,  dated  as of  February  16,  2000,  to  the  Employment
Agreement,  dated as of January 3, 1995 (as previously  amended by the Amendment
to Employment  Agreement dated as of May 17, 1995, Amendment No. 2 to Employment
Agreement dated as of March 5, 1997, and Amendment No. 3 to Employment Agreement
dated as of July 1,  1997,  the  "Employment  Agreement")  by and  among  Finlay
Enterprises,  Inc., a Delaware corporation,  Finlay Fine Jewelry Corporation,  a
Delaware corporation,  and Arthur E. Reiner (the "Executive").

                              W I T N E S S E T H :

     WHEREAS,  the parties hereto mutually desire to amend certain provisions of
the Employment Agreement;

     NOW,  THEREFORE,  for good and valuable  consideration,  the parties hereto
agree as follows:

     1. The  provisions  of Section  4(a) and 4(d) of the  Employment  Agreement
shall be  amended  so that the  following  sentence  is added at the end of said
paragraphs:

     "Notwithstanding  anything to the  contrary  herein  contained,  the Target
     Level of EBITA for the 1999 Fiscal Year (i.e.,  the year ended  January 29,
     2000)and all subsequent  years shall be adjusted to include only EBITA from
     the Operating  Company's domestic operations and shall eliminate the impact
     of  the   disposition   of   assets  of   Societe   Nouvelle   d'Achat   de
     Bijouterie-SONAB  ("Sonab"),  the  liquidation  of the  balance  of the net
     assets of Sonab  following  said  disposition  and the closure of the Sonab
     operation."

     2. Except as amended hereby, the Employment  Agreement shall remain in full
force and effect,  without change or  modification.  The  Employment  Agreement,
together  with this  Amendment  No. 4, is  intended  by the  parties  as a final
expression of their agreement and understanding in respect of the subject matter
contained herein and therein.  The Employment Agreement and this Amendment No. 4
supersede  all prior  agreements  and  understandings  between the parties  with
respect to such subject matter.

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     3. This  instrument  may be executed in two or more  counterparts,  each of
which shall be deemed an original,  but all of which together  shall  constitute
one and the same instrument.

     4. Terms defined in the  Employment  Agreement  and not  otherwise  defined
herein shall have the meanings set forth in the Employment Agreement.

     IN WITNESS WHEREOF,  the parties hereto have signed this Amendment No. 4 as
of the day and year first above written.


                                            /s/ Arthur E. Reiner
                                            -----------------------------------
                                            Arthur E. Reiner


                                            FINLAY ENTERPRISES, INC.


                                             By:  /s/ Bruce Zurlnick
                                            -----------------------------------
                                             Name:  Bruce Zurlnick
                                             Title: Senior Vice President
                                              and Chief Financial Officer


                                             FINLAY FINE JEWELRY CORPORATION


                                             By:  /s/ Bruce Zurlnick
                                            -----------------------------------
                                             Name:  Bruce Zurlnick
                                             Title: Senior Vice President
                                              and Chief Financial Officer





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