Document:

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                               FOURTH AMENDMENT TO
                              AMENDED AND RESTATED
                           GOLD CONSIGNMENT AGREEMENT
                           DATED AS OF MARCH 30, 2001

        THIS FOURTH AMENDMENT is made as of the 6th day of July, 2003, among
SOVEREIGN BANK (formerly known as Rhode Island Hospital Trust National Bank), a
Federal Savings Bank with an office at 15 Westminster Street, Providence, Rhode
Island 02903, as agent ("Agent") and as a bank ("Sovereign" and together with
the other lending institutions from time to time collectively, the
"Institutions"), SOVEREIGN PRECIOUS METALS, LLC, a Pennsylvania limited
liability company ("LLC"), FINLAY FINE JEWELRY CORPORATION, a Delaware
corporation ("Finlay") and EFINLAY, INC. a Delaware corporation ("eFinlay").

                                WITNESSETH THAT:

        WHEREAS, Sovereign, Finlay and eFinlay are parties to a certain Amended
and Restated Gold Consignment Agreement dated as of March 30, 2001, as amended
by a First Amendment to Amended and Restated Gold Consignment Agreement dated as
of December 31, 2001, as further amended by a Second Amendment to Amended and
Restated Gold Consignment Agreement dated as of September 30, 2002 and as
further amended by a Third Amendment to Amended and Restated Gold Consignment
Agreement dated as of April 4, 2003 (as amended, the "Consignment Agreement"),
relating to the consignment by the Institutions to Finlay;

        WHEREAS, the parties desire to further amend and modify the Consignment
Agreement in certain respects;

        NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

        1. Section 8.2.4 of the Consignment Agreement is hereby amended by
deleting Section 8.2.4(C) (3) in its entirety and replacing it with the
following:

                "(3) Finlay may declare or pay dividends to the Parent
        commencing on the date hereof until September 29, 2004 in an aggregate
        amount not to exceed $24,000,000 in order to enable the Parent to
        repurchase up to $24,000,000 of its own common stock in either open
        market transactions or privately negotiated transactions (which may be
        with affiliates of the Parent and Consignees) so long as, at the time of
        the consummation of any such transaction, no Default or Event of Default
        has occurred and is continuing, the purchase price for any such common
        stock does not exceed fair market value thereof as of the date of
        purchase, and such transaction otherwise complies with the requirements
        of the Agreement, including, without limitation, Section 8.2.4(C)(iii)
        of the Agreement (as modified through the date hereof);"

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        2. Section 8.2.4 of the Consignment Agreement is hereby further amended
by adding a new subsection (4) as follows:

                "(4) Finlay may pay dividends to the Parent for the payment of
        cash dividends by the Parent of up to $5,000,000 plus 25% of net income
        (without giving effect to extraordinary gains or losses or gains or
        losses resulting from the repurchase, acquisition or redemption of
        Senior Debentures and Senior Notes) of Finlay and its subsidiaries after
        January 31, 2003 provided, that the Parent shall give the Agent
        quarterly notice, in arrears, of cash dividends made by it pursuant to
        this subsection (4), specifying the amount of aggregate cash dividends
        and the source from which Finlay obtained the funds to be used to
        effectuate such cash dividends."

        3. Section 8.2.5(iii) of the Consignment Agreement is hereby amended by
deleting the word "or" before subsection (J) and adding a new subsection (K) to
subsection (iii) as follows:

                "or (K) the sale, transfer and assignment by Finlay to eFinlay
        of inventory as required for eFinlay to sell such inventory to fulfill
        purchases consummated in the normal course of business through
        websites."

        4. Section 8.2.6(ii) of the Consignment Agreement is hereby amended by
adding the following additional proviso immediately following the existing
proviso as follows:

                "and provided, further that Finlay may sell, transfer and assign
        to eFinlay inventory as required for eFinlay to sell such inventory to
        fulfill purchases consummated in the normal course of business through
        websites;"

        5. Finlay and eFinlay each hereby grant and reconfirm the security
interest granted to Agent pursuant to the Security Agreement.

        6. The effectiveness of the transactions described herein shall be
subject to (i) delivery to LLC of this Fourth Amendment and (ii) payment of all
outstanding legal fees due and owing to counsel to Sovereign and LLC.

        7. Each of Finlay and eFinlay and the Agent hereby agree that, except as
expressly provided herein, the terms and provisions of the Consignment Agreement
remain unchanged and the Consignment Agreement remains in full force and effect
in accordance with its terms. The term "Agreement" as used in the Consignment
Agreement and all references to the Consignment Agreement in any other documents
or agreements among any of the parties hereto which relate to either Finlay or
eFinlay shall refer, from and after the date hereof, to the Consignment
Agreement as amended and supplemented by this Fourth Amendment.

        8. Each of Finlay and eFinlay hereby ratifies and reaffirms that (i) the
representations and warranties contained in the Consignment Agreement, as
amended by the terms hereof, are true and correct as of the date hereof, except
that references to financial

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statements shall refer to the latest financial statements furnished pursuant to
the Consignment Agreement and (ii) no Event of Default (as defined in the
Consignment Agreement) nor any event which with notice or the lapse of time, or
both, would constitute an Event of Default exists as of the date hereof.

        IN WITNESS WHEREOF, each of the parties hereto has caused this Fourth
Amendment to be executed in several counterparts, each of which shall be deemed
to be an original as of the day and year first above written.

                                    SOVEREIGN BANK, as Agent and a Lender

                                    By  /s/ Elizabeth Sousa
                                        -----------------------------------
                                            Title   Vice President
                                                    -----------------------

                                    SOVEREIGN PRECIOUS METALS, LLC, as
                                    Agent and a Lender

                                    By  /s/ Elizabeth Sousa
                                        -----------------------------------
                                            Title   Vice President
                                                    -----------------------

                                    COMMERZBANK INTERNATIONAL S.A.

                                    By  /s/ Jerem East
                                        -----------------------------------
                                            Title   Vice President
                                                    -----------------------

                                    By  /s/ Manfred Jahns
                                        -----------------------------------
                                            Title   Vice President
                                                    -----------------------

                                    FINLAY FINE JEWELRY CORPORATION

                                    By  /s/ Bruce Zurlnick
                                        -----------------------------------
                                            Title   Sr. VP & CFO
                                                    -----------------------

                                    EFINLAY, INC.

                                    By  /s/ Bruce Zurlnick
                                        -----------------------------------
                                            Title   Sr. VP & CFO
                                                    -----------------------

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                           RESTRICTED STOCK AGREEMENT
                           --------------------------

     AGREEMENT, made this 14th day of August, 2003, between Finlay Enterprises,
Inc., a Delaware corporation (the "Company"), and Arthur E. Reiner (the
"Grantee").

     1. PURPOSE. The purpose of this Restricted Stock Agreement (the
"Agreement"), is to provide an incentive and reward to the Grantee who is the
Chairman, President and Chief Executive Officer of the Company and Chairman and
Chief Executive Officer of Finlay Fine Jewelry Corporation ("Finlay"), who, by
his industry, loyalty and exceptional service, has contributed to, and will
continue to contribute to, the growth and development of the Company.

     2. SHARES AWARDED.

        (a) The Grantee is hereby awarded 50,000 shares of Common Stock, $.01
par value, of the Company (the "Shares"), which Shares shall be subject to the
vesting provisions and other restrictions set forth herein.

        (b) The Shares are granted pursuant to the Company's 1997 Long Term
Incentive Plan, as amended (the "Plan"). The Shares are subject to all of the
applicable provisions of the Plan which are incorporated herein by reference,
and any conflict between the terms of this Agreement and those of the Plan shall
be resolved in favor of the terms of the Plan.

        (c) Capitalized terms used herein which are defined in the Employment
Agreement dated as of January 3, 1995, as amended, among the Grantee, the
Company and Finlay (the "Employment Agreement"), shall have the meanings therein
defined.

     3. CERTIFICATES, ESCROW, VOTING, DIVIDENDS, ETC.

     (a) Concurrent with the execution and delivery of this Agreement, or as
soon thereafter as is practicable, a certificate covering the Shares shall be
issued in the name of the Grantee, which certificate shall be escrowed with the
Secretary of the Company (the "Escrow Agent"). Such certificate

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shall have stamped thereon a legend indicating that the Shares are subject to
the restrictions set forth in this Agreement, as more fully described in Section
7 below.

     (b) During the period of time such Shares are subject to the restrictions
hereunder, the Grantee shall, nevertheless, have all the rights of a stockholder
with respect to such Shares, including the right to vote such Shares at any
meeting of the common stockholders of the Company and the right to receive all
cash and other dividends or distributions paid with respect to such Shares.

     (c) In the event the Company shall effect any dividend or other
distribution in the form of shares of Common Stock, or there shall occur any
recapitalization, forward or reverse split, reorganization, merger,
consolidation, spin-off, combination, repurchase, share exchange or other
similar corporate transaction or event which affects the Common Stock such that
an adjustment is appropriate in order to prevent dilution or enlargement of the
rights of the Grantee hereunder, then the Company shall, in such manner as it
may deem equitable, adjust the number and/or type of securities issued to
Grantee pursuant to Section 2 hereof after the effective date of such dividend
or distribution or other corporate transaction or event.

     4. VESTING AND OTHER RESTRICTIONS

        (a) The Shares granted hereunder shall vest in accordance with the
following schedule:

                                                    PORTION OF SHARES
          TRANCHE               DATE                WHICH ARE VESTED
          -------               ----                -----------------

             A           January 31, 2005                 50%
             B           June 30, 2007                    50%

       (b) The Shares are hereby awarded to Grantee on the condition that he
remain in the employment of the Company through the applicable vesting dates
(the "Restricted Periods") subject to the terms hereof.

       (c) Notwithstanding anything to the contrary herein contained or in the
Employment Agreement, (i) a pro rata portion of the Shares (based on, for shares
included in Tranche A, the number of full calendar months Grantee is employed
with the Company from the date of this Agreement through January 31,

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2005 and, for Shares included in Tranche B, the number of full calendar months
he is employed with the Company from the date of this Agreement through June 30,
2007) shall be deemed vested and nonforfeitable if the Grantee is terminated
without Cause by the Company or the Grantee terminates employment for Good
Reason or if the Grantee's employment is terminated by reason of his death or
disability, and the balance of the Shares not so vested shall be deemed
absolutely forfeited; and (ii) upon termination of the Grantee's employment for
any reason coincident with or following a Change of Control, all of the Shares
shall be deemed vested and nonforfeitable and no portion thereof shall be deemed
forfeited.

       (d) Upon Shares becoming vested hereunder, all restrictions in respect of
this Agreement (excluding the Stockholders' Agreement and Registration Rights
Agreement as such terms are defined in Section 5 below)) shall be removed from
the certificates representing such Shares and the Escrow Agent of the Company
shall deliver to the Grantee one or more certificates representing such vested
Shares.

     5. STOCKHOLDERS' AND REGISTRATION RIGHTS AGREEMENTS. The Grantee hereby
acknowledges that he is a party to the Amended and Restated Stockholders'
Agreement dated as of March 6, 1995 and the Registration Rights Agreement, dated
as of May 26, 1993, each as amended (respectively the "Stockholders' Agreement"
and the "Registration Rights Agreement"), by and among the Company, the Grantee,
and certain other parties, and as such the Grantee will be subject, in addition
to the provisions of this Agreement, to all of the terms, conditions and
obligations of such agreements, including, without limitation, restrictions on
the transferability of the Shares (and any other securities issued to him
pursuant to Section 3(c) hereof).

     6. RESTRICTIONS ON TRANSFER. The Grantee hereby represents and warrants to
and agrees with the Company as follows:

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       (a) The Shares (and any other securities issued pursuant to Section 3(c)
hereof) may not be sold, exchanged, transferred, pledged, hypothecated or
otherwise disposed of during the period commencing on the date hereof and
terminating at the end of the applicable Restricted Period, unless the
restrictions set forth herein terminate prior thereto in accordance with Section
4 hereof.

       (b) The Shares (and any other securities issued pursuant to Section 3(c)
hereof) are being acquired by the Grantee for the Grantee's benefit and account
for investment purposes, and not with a view to or for resale in connection with
a public offering and distribution thereof.

       (c) The Shares (and any other securities issued pursuant to Section 3(c)
hereof) will not be sold, exchanged, transferred, pledged, hypothecated or
otherwise disposed of by the Grantee in any manner, directly or indirectly, (i)
without registration thereof under the Securities Act of 1933, as amended, and
any applicable state "Blue Sky" laws unless an exemption from such registration
is available and, if the Company so requests, the Grantee causes counsel
satisfactory to the Company to deliver to the Company a written opinion of such
counsel in form and substance satisfactory to the Company; or (ii) in violation
of any law; or (iii) in violation of the Stockholders' Agreement or the
Registration Rights Agreement.

     7. RESTRICTIVE LEGENDS. Subject to the terms hereof, all certificates
representing Shares issued to the Grantee hereunder (and all certificates
representing any other securities issued to Grantee hereunder) shall bear
restrictive legends thereon substantially as follows:

     "THE SALE, ASSIGNMENT, TRANSFER OR OTHER DISPOSITION OF THE SECURITIES
     REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE PROVISIONS OF A
     RESTRICTED STOCK AGREEMENT DATED AS OF AUGUST 14, 2003 BETWEEN THE COMPANY
     AND ARTHUR E. REINER, AND AN AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT
     DATED AS OF MARCH 6, 1995 AND A REGISTRATION RIGHTS AGREEMENT DATED AS OF
     MAY 26, 1993, EACH AS AMENDED, BY AND AMONG THE COMPANY, ARTHUR E. REINER
     AND CERTAIN OTHER PARTIES, COPIES OF WHICH ARE ON FILE WITH THE SECRETARY
     OF THE COMPANY."

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     "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933, AS AMENDED, (THE "ACT"), AND MAY NOT BE OFFERED
     OR SOLD EXCEPT (i) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
     THE ACT, (ii) TO THE EXTENT APPLICABLE, PURSUANT TO RULE 144 UNDER THE ACT
     (OR ANY SIMILAR RULE UNDER SUCH ACT RELATING TO THE DISPOSITION OF
     SECURITIES), OR (iii) UPON THE DELIVERY BY THE HOLDER TO THE COMPANY OF AN
     OPINION OF COUNSEL, SATISFACTORY TO COUNSEL TO THE COMPANY, STATING THAT AN
     EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE."

     8. BINDING EFFECT. This Agreement shall be binding upon the heirs,
executors, administrators and successors of the parties hereto.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first above written.

                                        FINLAY ENTERPRISES, INC.

                                        By /s/ Bruce E. Zurlnick
                                           ------------------------------
                                           Bruce E. Zurlnick
                                           Senior Vice President and
                                           Chief Financial Officer

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

                                       -5-

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