Document:

AMENDMENT NO. 11
                               AND LIMITED CONSENT

     THIS AMENDMENT NO. 11 AND LIMITED CONSENT (this  "Amendment") is made as of
September 29, 2000, by and between FINLAY FINE JEWELRY  CORPORATION,  a Delaware
corporation  with its principal  office at 521 Fifth Avenue,  New York, New York
10175 (the  "Consignee"),  and SOVEREIGN  BANK,  as successor to Fleet  National
Bank, formerly known as BankBoston,  N.A., as successor to Rhode Island Hospital
Trust National Bank (the  "Consignor"),  amending certain provisions of the Gold
Consignment  Agreement  dated  as of June  15,  1995 (as  amended,  modified  or
supplemented  and in effect,  the "Consignment  Agreement"),  by and between the
Consignee and the Consignor.  Capitalized terms used herein which are defined in
the  Consignment  Agreement and not defined  herein shall have the same meanings
herein as therein.

     WHEREAS,  the  Consignee  wishes  to  create  eFinlay,   Inc.,  a  Delaware
corporation ("eFinlay"), as a wholly owned subsidiary in order to sell inventory
from time to time to pursuant  to the  Marketing  Agreement  dated as of July 6,
2000  (the   "eFinlay   Marketing   Agreement")   between  the   Consignee   and
800-Flowers.com, Inc., a New York corporation ("800-Flowers") in connection with
800-Flowers' sale of flowers, jewelry and other items over the internet;

     WHEREAS,  the  Consignee  proposes to sell  certain  inventory  and provide
certain  services  (directly  or through  its  wholly  owned  subsidiary  Finlay
Merchandising & Buying,  Inc.) to eFinlay in connection with eFinlay's  business
endeavors with 800-Flowers under the eFinlay Marketing Agreement;

     WHEREAS,  in connection  therewith,  the  Consignee has requested  that the
Consignor  agree to amend  the terms of the  Consignment  Agreement  in  certain
respects  as  hereinafter  more fully set forth so as,  among other  things,  to
permit the transfer of such inventory and certain other assets and the provision
of such services;

     WHEREAS,  the  Consignor  is willing to amend the terms of the  Consignment
Agreement  in such  respects  upon  the  terms  and  subject  to the  conditions
contained herein;

     NOW, THEREFORE,  in consideration of the mutual agreements contained in the
Consignment  Agreement,  herein and other good and valuable  consideration,  the
receipt and  sufficiency  of which are hereby  acknowledged,  the parties hereto
hereby agree as follows:

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                                      -2-

     ss.1.  Amendment of ss.1  of the  Consignment  Agreement.  Section 1 of the
Consignment Agreement is hereby amended by:

     (a)  amending the  definition of  "Consignment  Limit" by deleting the text
          "100,000  fine troy  ounces" and  inserting  in lieu  thereof the text
          "105,000 fine troy ounces".

     (b)  amending  the  definition  of  "Consignment  Limit  Report"  to insert
          immediately  after  the text  "(including,  without  limitation,"  and
          immediately  before the text  "information  as to what  portion",  the
          following text:  "deductions  for any amounts  consisting of Specified
          Gold Jewelry sold or transferred to eFinlay and".

     (c)  amending the  definition  of  "Obligations"  by deleting the text "the
          Consignee"  and  substituting  in lieu  thereof  the text  "any of the
          Consignee and its Subsidiaries".

     (d)  amending  the   definition  of  "Security   Documents"  by  inserting,
          immediately  after the text "the Security  Agreement," and immediately
          before the text "the Cash Collateral Agreement", the text "the eFinlay
          Guaranty, the eFinlay Security Agreement,".

     (e)  inserting  the  following  new  definitions  in the order  required by
          alphabetical order:

     eFinlay. eFinlay, Inc., a Delaware corporation.

     eFinlay  Contribution  Agreement.  The  Contribution  Agreement dated as of
September  29,  2000  between the  Consignee  and  eFinlay,  as in effect on the
Eleventh Amendment Effective Date.

     eFinlay FM Services Agreement. The Services Agreement dated as of September
29, 2000 between Finlay  Merchandising and eFinlay, as in effect on the Eleventh
Amendment Effective Date.

     eFinlay  Guaranty.  The  Guaranty,  dated or to be dated on or prior to the
Eleventh  Amendment  Effective  Date, made by eFinlay in favor of the Consignor,
pursuant  to  which  eFinlay   guaranties  to  the  Consignor  the  payment  and
performance of the  Obligations  and in form and substance  satisfactory  to the
Consignor.

     eFinlay Lease Agreement. The Lease Agreement dated as of September 29, 2000
between  the  Consignee  and  eFinlay,  as in effect on the  Eleventh  Amendment
Effective Date.

<PAGE>
                                      -3-

     eFinlay Marketing  Agreement.  The Marketing  Agreement dated as of July 6,
2000  between  the  Consignee  and  800-Flowers.com,  Inc.,  as in effect on the
Eleventh Amendment Effective Date.

     eFinlay Security Agreement.  The eFinlay Security Agreement dated as of the
Eleventh Amendment Effective Date, between eFinlay and the Consignor and in form
and substance satisfactory to the Consignor.

     eFinlay Services  Agreement.  The Services  Agreement dated as of September
29, 2000 between the Consignee and eFinlay.

     Eleventh  Amendment.  Amendment  No.  11 and  Limited  Consent  dated as of
September 29, 2000 between the Consignor and the Consignee.

     Eleventh Amendment  Effective Date. The "Effective Date", as defined in the
Eleventh Amendment.

     ss.2.  Amendment of ss.8.1.  Section 8.1 of the  Consignment  Agreement  is
hereby amended by:

     (a)  deleting the word "and" from the end of subsection (l) thereof;

     (b)  deleting  clause (ii) of  subsection  (m) thereof in its  entirety and
          substituting in lieu thereof the following text:

          "(ii)  Finlay Merchandising to declare and distribute to the Consignee
                 as a dividend,  within  thirty (30) days  following  the end of
                 each fiscal quarter  during which payments  described in clause
                 (i) of this  subsection  (m) or in clause (i) of subsection (n)
                 are made to Finlay  Merchandising,  an amount  equal to the sum
                 (net of amounts  (which  amounts  may be paid in cash) equal to
                 the reasonable,  ordinary course  operating  expenses of Finlay
                 Merchandising for the then current fiscal month and immediately
                 succeeding fiscal month, including, without limitation, payroll
                 expenses  for  employees  of  Finlay  Merchandising),  of  such
                 payments  under  clause  (i) of this  subsection  (m) plus such
                 payments to Finlay Merchandising, under subsection (n)(i)".

     (c)  inserting,  immediately  after  subsection (m) thereof and immediately
          before  ss.8.2,  the following new  subsection  (n) with the following
          text:

          "(n)   cause (i) all amounts owed to the Consignee or, as the case may
                 be,  Finlay  Merchandising  under any purchase  orders or other
                 requests for merchandise or inventory  issued by eFinlay to the
                 Consignee,  the  eFinlay  Services  Agreement,  the  eFinlay FM
                 Services  Agreement,  the eFinlay Lease  Agreement or any other

<PAGE>
                                      -4-

                 agreement between eFinlay and the Consignee or, as the case may
                 be, Finlay Merchandising to be paid to the Consignee or, as the
                 case  may  be,  Finlay   Merchandising   at  least   quarterly,
                 commencing with the quarter ending December 31, 2000, either by
                 means of appropriate intercompany book entries or by payment in
                 cash,  and  (ii)  eFinlay  to  declare  and  distribute  to the
                 Consignee as a dividend,  within thirty (30) days following the
                 end of each  fiscal  quarter,  an amount  equal to all  amounts
                 retained by eFinlay  following  payment to the Consignee or, as
                 the case may be, Finlay  Merchandising  of the amounts required
                 by clause (i) of this  subsection (n) (which amounts may be net
                 of amounts equal to the reasonable, ordinary operating expenses
                 of  eFinlay  for  the  then   current   fiscal  month  and  the
                 immediately   succeeding  fiscal  month,   including,   without
                 limitation, payroll expenses for employees of eFinlay)."

     ss.3. Amendment of ss.8.2(c) of the Consignment  Agreement.  Section 8.2(c)
of the  Consignment  Agreement is hereby amended by deleting clause (vi) thereof
in its entirety and substituting in lieu thereof the following clause (vi):

          "(vi) in the  capital  stock of  Subsidiaries  existing on the Closing
          Date, Finlay  Merchandising,  eFinlay or any other Subsidiary  created
          with the prior written  consent of the  Consignor,  (B) in the case of
          Finlay  Merchandising,   consisting  of  those  items  set  forth  and
          described on Schedule I to the  Contribution  Agreement and (C) in the
          case of eFinlay,  consisting of those items set forth and described on
          Schedule A to the Eleventh Amendment; provided, however, that for each
          of the  foregoing  clauses (A), (B) and (C), the  Consignee  shall not
          make  any  additional   investments   therein  other  than  additional
          investments  approved in advance in writing by the Consignor and other
          than  increases  in such  investments  arising  solely  by  reason  of
          increases in the retained earnings of any such Subsidiary".

     ss.4. Amendment of ss.8.2(d) of the Consignment  Agreement.  Section 8.2(d)
of the Consignment Agreement is hereby amended by:

     (a)  deleting  clause (i) thereof in its entirety and  substituting in lieu
          thereof the text "[Reserved]";

     (b)  deleting the word "and" between  clauses (1) and (2) of clause (ii)(C)
          thereof;

     (c)  inserting, immediately before the semicolon (";") at the end of clause
          (ii)(C) thereof, the following text:

          "and (3) the  Consignee  may declare or pay dividends to the Parent in
          an aggregate  amount not to exceed  $20,000,000 in order to enable the

<PAGE>
                                      -5-

          Parent to repurchase up to $20,000,000 of its own Equity  Interests in
          open market transactions"; and

     (d)  deleting  clause (H) thereof in its entirety and  substituting in lieu
          thereof the following text:

          "(H) The  Consignee  may  purchase  all,  but not less than all of the
          capital  stock  of  each  of  Finlay   Merchandising  and  eFinlay  in
          connection with the creation thereof by the Consignee."

     ss.5.  Amendment of  ss.8.2(e)(iii) of the Consignment  Agreement.  Section
8.2(e)(iii) of the Consignment  Agreement is hereby amended by deleting  clauses
(H) and (I) (but not the proviso at the end of ss.8.2(e)(iii))  and substituting
in lieu thereof the  following  text:  "(H) the Sonab  Transfer  pursuant to the
Sonab Transfer Agreement,  (I) in connection with the transactions  contemplated
by the eFinlay  Contribution  Agreement and eFinlay's  sale from time to time to
800-Flowers.com,  Inc., a New York  corporation,  of  inventory  pursuant to the
eFinlay Marketing  Agreement,  the transfer from the Consignee to eFinlay of the
assets described on Exhibit A to the Eleventh  Amendment and inventory  pursuant
to purchase  orders issued from time to time by eFinlay to the Consignee for the
purchase of inventory for a purchase price at least equal to the cost thereof to
the  Consignee,  or (J)  sales or  other  transfers  of  assets  other  than the
foregoing, having a value, together with the value of all other such property of
the Consignee and its  Subsidiaries  so sold since June 15, 1995, of not greater
than $5,000,000;".

     ss.6.  Amendment of ss.9(d) to the Consignment  Agreement.  Section 9(d) of
the Consignment Agreement is hereby amended by inserting,  immediately after the
text  "Security  Agreement"  in each of the two places in which it appears,  the
text "or in ss.4 of the eFinlay Security Agreement".

     ss.7. Amendment of Schedule XI to the Consignment Agreement. Schedule XI to
the  Consignment  Agreement is hereby amended by inserting,  at the end thereof,
the following items:

          "Transfer  of  inventory  from the  Consignee  to eFinlay  pursuant to
          purchase  orders  issued by  eFinlay  from time to time for a purchase
          price not less than the cost thereof to the Consignee."

          "Lease by the Consignee to eFinlay of approximately  6,000 square feet
          of space in the Consignee's  Connecticut  distribution center pursuant
          to and on the terms and  conditions  set  forth in the  eFinlay  Lease
          Agreement."

     ss.8. Amendment of the Security Agreement. The Security Agreement is hereby
amended by deleting all references  contained therein to the Uniform  Commercial
Code of the State of Rhode Island and substituting in lieu thereof

<PAGE>
                                      -6-

references to the Uniform Commercial Code of or as in effect in the Commonwealth
of Massachusetts.

     ss.9.  Limited  Consent.  Subject to the satisfaction of the conditions set
forth in ss.10  hereof,  the  Consignor  hereby  consents to the  execution  and
delivery by the Consignee of Amendment No. 10 and Consent,  amending the Amended
and  Restated  Credit  Agreement  dated  as of  September  11,  1997  among  the
Consignee,  the Parent,  the Dollar Agent and the Lenders  party  thereto,  such
Amendment being in substantially the form attached hereto as Exhibit B.

     ss.10.  Representations and Warranties. The Consignee hereby represents and
warrants to the Consignor as follows:

     (a)  Representations and Warranties.  The representations and warranties of
          the Consignee and eFinlay  contained in the Consignment  Agreement and
          the other Consignment  Documents were true and correct in all material
          respects when made and continue to be true and correct in all material
          respects on the date hereof, except to the extent of changes resulting
          from  transactions   contemplated  or  permitted  by  the  Consignment
          Documents  and this  Amendment  and changes  occurring in the ordinary
          course of business that do not result in a Materially  Adverse Effect,
          and to the extent  that such  representations  and  warranties  relate
          expressly to an earlier date.

     (b)  Authority, No Conflicts, Etc. The execution,  delivery and performance
          by the  Consignee  of this  Amendment  and by eFinlay  of the  eFinlay
          Guaranty  and the  eFinlay  Security  Agreement  (each as  hereinafter
          defined  and   collectively   with  this  Amendment,   the  "Amendment
          Documents"),  and the  consummation of the  transactions  contemplated
          hereby and thereby (i) are within the corporate power of the Consignee
          and eFinlay and have been duly  authorized by all necessary  corporate
          action on the part of the Consignee  and eFinlay,  (ii) do not require
          any approval or consent of, or filing with, any governmental agency or
          authority, or any other person,  association or entity (except for the
          consent of the Dollar Agent and the lenders under the Dollar Facility,
          which consent is being obtained  concurrently  herewith as required by
          ss.11  hereof),  which bears on the  validity of this  Amendment,  the
          other Amendment  Documents or the  Consignment  Documents and which is
          required by law or the  regulation or rule of any agency or authority,
          or other  person,  association  or entity,  (iii) do not  violate  any
          provisions  of any law,  rule or  regulation  or any  provision of any
          order,  writ,  judgment,  injunction,  decree,  determination or award
          presently in effect in which the  Consignee is named in a manner which
          has or could  reasonably  be  expected  to have a  Materially  Adverse
          Effect,  (iv) do not violate any provision of the Charter Documents of
          the  Consignee  or  eFinlay,  (v) do not  result  in any  breach of or
          constitute a default under any agreement or

<PAGE>
                                      -7-

          instrument to which the Consignee or eFinlay is a party or by which it
          or any of its properties is bound,  including  without  limitation any
          indenture,  loan  or  credit  agreement,  lease,  debt  instrument  or
          mortgage,  in a manner  which has or could  reasonably  be expected to
          have a Materially Adverse Effect, and (vi) do not result in or require
          the creation or  imposition of any  mortgage,  deed of trust,  pledge,
          lien,  security  interest or other charge or encumbrance of any nature
          upon any of the  assets or  properties  of the  Consignee  or  eFinlay
          except in favor of the Consignor pursuant to the Security Documents.

     (c)  Enforceability  of  Obligations.  Each of the Amendment  Documents has
          been duly  executed  and  delivered by the  Consignee  and eFinlay and
          constitutes the legal,  valid and binding  obligation of the Consignee
          and  eFinlay,   enforceable  against  the  Consignee  and  eFinlay  in
          accordance  with  its  terms,  provided  that (a)  enforcement  may be
          limited  by   applicable   bankruptcy,   insolvency,   reorganization,
          fraudulent  conveyance  or  transfer,  moratorium  or similar  laws of
          general  application  affecting  the rights and remedies of creditors,
          and (b)  enforcement  may be subject to general  principles of equity,
          and the  availability  of the  remedies  of specific  performance  and
          injunctive relief may be subject to the discretion of the court before
          which any proceedings for such remedies may be brought.

     ss.11. Conditions to Effectiveness. This Amendment shall be effective as of
the date first above written (the "Effective Date") upon the Consignor's receipt
of each of the following, in each case in form and substance satisfactory to the
Consignor:

     (a)  this  Amendment  duly  executed  by  each  of the  Consignee  and  the
          Consignor;

     (b)  a Guaranty in the form of Exhibit C hereto (the  "eFinlay  Guaranty"),
          duly  executed by  eFinlay,  and a Security  Agreement  in the form of
          Exhibit D hereto (the "eFinlay  Security  Agreement") and a Perfection
          Certificate  in  the  form  of  Exhibit  E  hereto  (the   "Perfection
          Certificate"),  each  duly  executed  by  each  of the  Consignor  and
          eFinlay;

     (c)  a copy,  certified  by the  Secretary  of  eFinlay  as being  true and
          complete as of the Effective  Date of (i) its charter  documents as in
          effect on such date of certification, (ii) its by-laws as in effect on
          such date, and (iii) resolutions of its Board of Directors authorizing
          the execution and delivery by eFinlay of, and the  performance  of its
          obligations under, each of the Guaranty and the Security Agreement;

     (d)  an incumbency certificate, dated as of the Effective Date, signed by a
          duly authorized officer of eFinlay, and giving the name of and bearing
          a specimen  signature of each  individual  who shall be  authorized to

<PAGE>
                                      -8-

          sign, in the name and on behalf of eFinlay, the eFinlay Guaranty,  the
          eFinlay  Security  Agreement,  the  Perfection  Certificate  and  this
          Amendment;

     (e)  good  standing  certificates  for eFinlay,  issued by the Secretary of
          State of its  jurisdiction of incorporation  and each  jurisdiction in
          which it has qualified to do business;

     (f)  UCC-1 consignment and non-consignment financing statements identifying
          the  Consignor as the secured  party and eFinlay as the debtor,  to be
          filed in each  jurisdiction  in which the  Consignor  requests  filing
          thereof;

     (g)  the legal  opinion of Blank Rome Tenzer  Greenblatt  LLP as to certain
          matters regarding eFinlay and the Guaranty and Security Agreement;

     (h)  an  amendment to the  Intercreditor  Agreement,  in the form  attached
          hereto  as  Exhibit  F,  duly  executed  by the  Dollar  Agent and the
          Consignor;

     (i)  copies of the eFinlay Marketing  Agreement,  the eFinlay  Contribution
          Agreement,  the eFinlay FM Services  Agreement,  the eFinlay Inventory
          Sale Agreement,  the eFinlay Lease Agreement and the eFinlay  Services
          Agreement (as each such term is defined in the amendments contained in
          ss.1 hereof),  each duly  executed by each of the parties  thereto and
          duly  certified  by  the  Secretary  or  Assistant  Secretary  of  the
          Consignee  as being  true,  correct,  complete  and in full  force and
          effect, without further amendment or modification;

     (j)  evidence of the  Consignee's  receipt of all necessary or  appropriate
          third  party  consents or  approvals  to the  amendments  contemplated
          hereby (including consents or approvals of the execution, delivery and
          performance  by  eFinlay  of the  eFinlay  Guaranty  and  the  eFinlay
          Security  Agreement),   including,  without  limitation,  consents  or
          approvals  from the Dollar  Agent and each of the  applicable  lenders
          under the Dollar Facility; and

     (k)  such other documents or items as the Consignor may request.

     ss.12. Ratifications,  etc. Except as expressly provided in this Amendment,
all of the terms  and  conditions  of the  Consignment  Agreement  and the other
Consignment  Documents shall remain in full force and effect.  All references in
the  Consignment  Agreement  or  any  related  agreement  or  instrument  to the
Consignment  Agreement shall hereafter  refer to the Consignment  Agreement,  as
amended  hereby.  The Consignee  confirms and agrees that the Obligations of the
Consignee  to the  Consignor  under the  Consignment  Documents,  as amended and

<PAGE>
                                      -9-

supplemented  hereby,  are secured by and are  entitled  to the  benefits of the
Security Documents.

     ss.13.  Expenses.  Without limiting the expense reimbursement  requirements
set forth in ss.11 of the Consignment Agreement,  the Consignee agrees to pay on
demand all costs and  expenses,  including  reasonable  attorneys'  fees, of the
Consignor incurred in connection with this Amendment.

     ss.14.  No Implied Waiver.  Except as expressly  provided  herein,  nothing
contained  herein shall  constitute a waiver of, impair or otherwise  affect any
Obligations,  any  other  obligations  of  the  Consignee  or any  right  of the
Consignor consequent thereon.

     ss.15.  Governing  Law.  This  Amendment  is  intended to take effect as an
instrument  under seal and shall be  construed  according to and governed by the
internal laws of the Commonwealth of Massachusetts.

     ss.16.  Execution in  Counterparts.  This  Amendment may be executed in any
number of  counterparts  and by each  party on a separate  counterpart,  each of
which when so executed  and  delivered  shall be an  original,  but all of which
together shall  constitute one instrument.  In proving this Amendment,  it shall
not be necessary to produce or account for more than one such counterpart signed
by the party against whom enforcement is sought.

<PAGE>
                                      -10-

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first above written.

                                       FINLAY FINE JEWELRY
                                         CORPORATION

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

                                       SOVEREIGN BANK, as successor to
                                       FLEET NATIONAL BANK, formerly known
                                       as BANKBOSTON, N.A., as successor
                                       in interest to RHODE ISLAND HOSPITAL
                                       TRUST NATIONAL BANK

                                       By: /s/ Patricia Malerba
                                          ----------------------------------
                                          Name: Patricia Malerba
                                          Title:  Vice President

     The  undersigned  hereby  acknowledges  the foregoing  Amendment No. 11 and
Limited Consent as of the Effective Date and agrees that its  obligations  under
the eFinlay Guaranty will extend to the Consignment Agreement, as so amended and
the other Consignment Documents.

                                       eFINLAY, INC.

                                       By: /s/ Bonni Davis
                                          ----------------------------------
                                          Name: Bonni Davis
                                          Title: Secretary

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

<PAGE>

                                    Exhibit A

Assets contributed to eFinlay:

          Item                                             Net Book Value
          ----                                             --------------

          Cash                                                $ 1,000
          3 new Conveying Solutions Packing Tables              3,015
          4 new Industrial 24x36 Carts                            429
          3 new Filing Cabinets                                   748
          1 new 2 ton Jack Palleti                                312
          100 linear feet of used shelving                      4,500
          2 used desks                                            750
          2 used credenzas                                        550
          2 Used PCs/Printers/Screens                           1,535
                                                              -------

          Total                                               $12,839AMENDMENT NO. 1 TO
                             INTERCREDITOR AGREEMENT

     THIS AMENDMENT NO. 1 TO INTERCREDITOR  AGREEMENT (the  "Amendment") is made
as of September  29, 2000 by and between  SOVEREIGN  BANK, as successor to Fleet
National Bank, formerly known as BankBoston,  N.A., as successor to Rhode Island
Hospital  Trust  National  Bank  (the  "Bank"),  and  GENERAL  ELECTRIC  CAPITAL
CORPORATION,  a corporation organized under the banking laws of the State of New
York,  in its  capacity  as agent (in such  capacity,  "GE  Capital")  under the
Amended and Restated  Credit  Agreement  dated as of September 11, 1997 (the "GE
Capital  Agreement")  among Finlay Fine Jewelry  Corporation  (the  "Borrower"),
Finlay  Enterprises,  Inc.  (the  "Parent"),  the  Agent and the  lenders  party
thereto,  with the  acknowledgment  and consent of the  Borrower,  amending  the
Intercreditor   Agreement  dated  as  of  June  15,  1995  (the   "Intercreditor
Agreement")  between the Bank and GE Capital,  and acknowledged and consented to
by the Borrower.  Capitalized  terms used herein without other  definition shall
have the meanings assigned to them in the Intercreditor Agreement.

     WHEREAS,  the Bank and GE Capital,  with the  acknowledgment and consent of
the Borrower,  have heretofore entered into the Intercreditor Agreement in order
to set forth the relative  priorities of their respective  security interests in
and liens on the GE Capital  Collateral and the Bank Collateral and to establish
certain other matters relating thereto;

     WHEREAS,  the  Borrower  wishes to  establish  eFinlay,  Inc.,  a  Delaware
corporation ("eFinlay"), to engage in certain e-commerce business opportunities;

     WHEREAS, in connection  therewith,  the Borrower wishes, from time to time,
to convey  certain  inventory  consisting in part of Specified  Gold Jewelry and
Bank Collateral to eFinlay;

     WHEREAS,  eFinlay is willing to guaranty  the  obligations  of the Borrower
under the GE Capital Agreement and to grant to GE Capital a security interest in
all of its assets;

     WHEREAS,  eFinlay is willing to guaranty  the  obligations  of the Borrower
under the Bank  Agreement  and to grant to the Bank a security  interest  in and
lien upon any Specified Gold Jewelry owned by eFinlay;

     WHEREAS,  the parties  hereto wish to ensure  that (i) any  Specified  Gold
Jewelry  at any time  owned by  eFinlay  shall be  deemed to  constitute  and be
entitled to the benefits of Specified  Gold Jewelry,  Bank  Collateral  and Bank
Priority  Collateral under and for all purposes of the  Intercreditor  Agreement
and (ii) that all

<PAGE>
                                      -2-

assets of eFinlay shall be deemed to constitute  and be entitled to the benefits
of GE  Capital  Collateral  under  and for  all  purposes  of the  Intercreditor
Agreement;

     WHEREAS,  in order to accomplish the foregoing,  each of the parties hereto
is willing to amend the  Intercreditor  Agreement in certain  respects  upon the
terms and subject to the conditions contained herein;

     NOW, THEREFORE,  in consideration of the mutual agreements contained in the
Intercreditor Agreement,  herein and other good and valuable consideration,  the
receipt and  sufficiency  of which are hereby  acknowledged,  the parties hereto
agree as follows:

     ss.1. Amendment of ss.1(a) of the Intercreditor Agreement.  Section 1(a) of
the Intercreditor Agreement is hereby amended by:

          (a)  inserting in the  definition  of "Bank  Collateral",  immediately
     before the period (".") at the end thereof the following text: "; provided,
     however,  that Bank  Collateral  shall at all  times be  deemed to  include
     Specified Gold Jewelry owned by eFinlay".

          (b) deleting from the  definition of "Bank  Documents" the text "as in
     effect on the date  hereof" and  inserting  in lieu  thereof the  following
     text: "as in effect on the First Amendment Effective Date".

          (c) deleting from the definition of "Bank Obligations" the text "as in
     effect on the date  hereof" and  inserting  in lieu  thereof the  following
     text: "as in effect on the First Amendment Effective Date."

          (d) deleting the period  (".") at the end of the  definition  of "Bank
     Security  Documents" and inserting in lieu thereof the following text: "and
     shall  include the eFinlay  Bank  Guaranty  and the eFinlay  Bank  Security
     Agreement."

          (e)  inserting,  in the order  required  by  alphabetical  order,  the
     following new definitions:

          "eFinlay" shall mean eFinlay, Inc., a Delaware corporation.

          ""eFinlay Bank Guaranty"  shall mean the eFinlay  Guaranty dated as of
     September  29,  2000,  issued by eFinlay in favor of the Bank,  as amended,
     restated, supplemented or modified from time to time.

          "eFinlay  Bank  Security  Agreement"  shall mean the eFinlay  Security
     Agreement  dated as of September 29, 2000 between the Bank and eFinlay,  as
     amended, restated, supplemented or modified from time to time.

<PAGE>
                                      -3-

          "eFinlay  GE Capital  Guaranty"  shall mean the  Guaranty  dated as of
     September 29, 2000,  issued by eFinlay in favor of GE Capital,  as amended,
     restated, supplemented or modified from time to time.

          "eFinlay  GE  Capital  Security  Agreement"  shall  mean the  Security
     Agreement  dated as of September 29, 2000,  between GE Capital and eFinlay,
     as amended, restated, supplemented or modified from time to time.

          "First Amendment  Effective Date" shall mean the "Effective  Date", as
     defined in Amendment No. 1 To Intercreditor Agreement dated as of September
     29, 2000 by and between  the Bank and GE Capital,  with the  acknowledgment
     and consent of the Borrower."

          (f)  inserting  in  the   definition   of  "GE  Capital   Collateral",
     immediately  before the period (".") at the end thereof the following text:
     ";  provided,  however,  that GE Capital  Collateral  shall at all times be
     deemed to  include  all of the  assets of each of  Finlay  Merchandising  &
     Buying,  Inc.  ("FMBI"),   Finlay  Jewelry,  Inc.  ("Finlay  Jewelry")  and
     eFinlay".

          (g) deleting from the definitions of "GE Capital Loan Documents",  "GE
     Capital  Obligations",  and "GE Capital Security Documents",  the text "the
     date hereof" and substituting in lieu thereof the text "the First Amendment
     Effective Date".

          (h)  deleting  the period  (".") at the end of the  definition  of "GE
     Capital  Security  Documents"  and  inserting in lieu thereof the following
     text: "and shall include the eFinlay GE Capital Guaranty and the eFinlay GE
     Capital  Security  Agreement,  and the guaranties  and security  agreements
     entered into by FMBI and Finlay Jewelry in favor of GE Capital."

          (i) deleting the period (".") from the end of the definition of "Lien"
     and  substituting  in lieu thereof the following  text: ", eFinlay,  Finlay
     Merchandising & Buying, Inc. or Finlay Jewelry, Inc.".

          (j) deleting  from the  definition  of "Precious  Metal" the text "the
     date hereof" and substituting in lieu thereof the text "the First Amendment
     Effective Date".

          (k)  deleting  the  definition  of  "Specified  Gold  Jewelry"  in its
     entirety and substituting in lieu thereof the following definition:

          ""Specified Gold Jewelry" shall have the meaning assigned to such term
     in the Bank  Agreement as in effect on the First  Amendment  Effective Date
     and shall include  Specified  Gold Jewelry owned by eFinlay,  but shall not
     include any proceeds of Specified  Gold Jewelry  other than the proceeds of
     casualty  insurance in respect of any loss or  destruction  of or damage to
     Specified  Gold  Jewelry,  which  proceeds of casualty  insurance  shall be
     included."

<PAGE>
                                      -4-

     ss.2.  Amendment of  ss.2a.4(b)  of the  Intercreditor  Agreement.  Section
2a.4(b) of the Intercreditor Agreement is hereby amended by:

          (a)  deleting  the first  sentence of  subsection  (ii) thereof in its
     entirety and substituting in lieu thereof the following text:

               "The  Borrower  shall deliver to GE Capital such copies of checks
          constituting  Payment Amounts,  Store Statements,  Consignment  Memos,
          statements  regarding  the sale of  Specified  Gold  Jewelry and other
          inventory by eFinlay and other materials as may be needed in order for
          GE Capital to make the necessary calculations under clause (c) below."

          (b) amending  subsection (iii) thereof by (i) deleting the text "or in
     the event that GE Capital receives proceeds of Specified Gold Jewelry which
     does not  constitute  a Payment  Amount," and  (ii).inserting,  immediately
     after the text "Payment  Amount" in each of the first two places it appears
     in such subsection, the text "or other proceeds of Specified Gold Jewelry".

     ss.3.  Amendment of  ss.2.a4(c)  of the  Intercreditor  Agreement.  Section
2.a4(c) of the Intercreditor Agreement is hereby amended by:

          (a) inserting,  in the preamble  thereof,  immediately  after the text
     "the Borrower" and immediately before the text "during any calendar month",
     the text "or eFinlay".

          (b)  deleting  from the  preamble  thereof the text "from each Payment
     Amount or other proceeds of Specified  Gold Jewelry  received by GE Capital
     from each host store in respect of such calendar  month," and  substituting
     in lieu thereof the  following  text:  "from each  Payment  Amount or other
     proceeds of Specified  Gold Jewelry  (including  proceeds of Specified Gold
     Jewelry  owned by eFinlay)  received by GE Capital  from each host store or
     otherwise  (including from purchasers of Specified Gold Jewelry) in respect
     of such calendar month,".

          (b) inserting in clause (II) thereof,  immediately after the text: "in
     the case of  proceeds  of  Specified  Gold  Jewelry  other than any Payment
     Amount" and  immediately  before the text "or,  subject to paragraph (b) of
     this Section 2a.4",  the following text  "(including,  without  limitation,
     proceeds of Specified Gold Jewelry owned by eFinlay)".

     ss.4.  Amendment of  ss.4(B)(1)  of the  Intercreditor  Agreement.  Section
4(B)(1) of the Intercreditor  Agreement is hereby amended by deleting  therefrom
the text "Bank Loan  Documents" and  substituting in lieu thereof the text "Bank
Documents".

<PAGE>
                                      -5-

     ss.5. Amendment of ss.6(c) of the Intercreditor Agreement.  Section 6(c) of
the Intercreditor  Agreement is hereby deleted in its entirety and the following
subsection is hereby substituted in lieu thereof:

          "(a) Notices.  All notices,  requests and other  communications to any
     party  hereunder  shall be in writing and shall be personally  delivered or
     sent by registered mail, postage prepaid, return receipt requested, or by a
     reputable courier delivery service or, alternatively by telecopy, and shall
     be given,

          if to the Bank:      Sovereign Bank
                               Precious Metals
                               1 West Mezzanine
                               15 Westminster Street
                               Providence, Rhode Island 02903

                               Attention: Albert L. Brown,
                                          Senior Vice President
                               Telecopier: (401) 752-1412

          with a copy to:      Bingham Dana LLP
                               150 Federal Street
                               Boston, Massachusetts 02110
                               Attention: Robert A. J. Barry, Jr. or
                                          Marijane Benner Browne, Esq.
                               Telecopier: (617) 951-8736

          if to GE Capital:    General Electric Capital Corporation
                               800 Connecticut Avenue
                               Two North
                               Norwalk, Connecticut 06854
                               Attention: Finlay Account Manager
                               Telecopier: (203) 852-3640 and
                               Attention: John Sirico, Esq.
                               Telecopier: (203) 316-7822

<PAGE>
                                      -6-

          with a copy to:      Weil, Gotshal & Manges LLP
                               767 Fifth Avenue
                               New York, New York 10153
                               Attention: Warren T. Buhle, Esq.
                               Telecopier: (212) 310-8007

          if to the Borrower:  Finlay Fine Jewelry Corporation
                               529 Fifth Avenue
                               New York, New York 10017
                               Attention: Mr. Bruce Zurlnick
                               Telecopier: (212) 808-2946

          with a copy to:      Blank Rome Tenzer Greenblatt LLP
                               The Chrysler Building
                               405 Lexington Avenue
                               New York, New York 10174

                               Attention: James M. Kaplan, Esq.
                               Telecopier: 212-885-5047

or such other address or telecopy number as such party may hereafter  specify by
notice to GE Capital,  the Bank and the Borrower.  Each such notice,  request or
other  communication  shall be  effective  (i) if given by  telecopy,  when such
telecopy is transmitted to the telecopy number specified in this Section and the
appropriate  confirmation by the recipient thereof is received, (ii) if given by
registered  mail, 72 hours after such  communication  is deposited with the post
office,  addressed  as  aforesaid  or (iii) if given by any  other  means,  when
delivered at the address specified in this Section."

     ss.6.  Representations  and  Warranties.  Each of the Bank  and GE  Capital
represents and warrants to the other as follows:

     (a)  Representations and Warranties.  The representations and warranties of
          such Lender  contained in the  Intercreditor  Agreement  were true and
          correct in all material respects when made and continue to be true and
          correct in all  material  respects on the date  hereof,  except to the
          extent  of  changes  resulting  from   transactions   contemplated  or
          permitted by the  Intercreditor  Agreement and this Amendment,  and to
          the extent that such  representations  and warranties relate expressly
          to an earlier date.

     (b)  Authority, No Conflicts, Etc. The execution,  delivery and performance
          by  such  Lender  of  this  Amendment  and  the  consummation  of  the
          transactions  contemplated  hereby  and  thereby  (i) are  within  the
          corporate  power of such Lender and have been duly  authorized  by all
          necessary  corporate  action on the part of such  Lender,  (ii) do not

<PAGE>
                                      -7-

          require any approval or consent of, or filing with,  any  governmental
          agency or authority, or any other person,  association or entity which
          bears on the validity of this Amendment or the Intercreditor Agreement
          and which is required by law or the  regulation  or rule of any agency
          or authority,  or other person,  association  or entity,  (iii) do not
          violate any provisions of any law, rule or regulation or any provision
          of any order, writ,  judgment,  injunction,  decree,  determination or
          award presently in effect in which such Lender is named,  and, (iv) do
          not  result  in any  breach  of or  constitute  a  default  under  any
          agreement or instrument to which such Lender is a party or by which it
          or any of its properties is bound,  including  without  limitation any
          indenture, contract, lease, debt instrument or mortgage.

     (c)  Enforceability  of  Obligations.  Each of the Amendment  Documents has
          been duly  executed and delivered by such Lender and  constitutes  the
          legal,  valid  and  binding  obligation  of such  Lender,  enforceable
          against such Lender in  accordance  with its terms,  provided that (a)
          enforcement  may be  limited  by  applicable  bankruptcy,  insolvency,
          reorganization,  fraudulent  conveyance  or  transfer,  moratorium  or
          similar laws of general application  affecting the rights and remedies
          of creditors, and (b) enforcement may be subject to general principles
          of  equity,   and  the   availability  of  the  remedies  of  specific
          performance and injunctive  relief may be subject to the discretion of
          the  court  before  which any  proceedings  for such  remedies  may be
          brought.

     ss.7. Conditions to Effectiveness.  This Amendment shall be effective as of
the date first  above  written  (the  "Effective  Date")  upon the Bank's and GE
Capital's  receipt  of this  Amendment  duly  executed  by each of the Bank,  GE
Capital and the Borrower.

     ss.8.  Ratifications,  etc. Except as expressly provided in this Amendment,
all of the terms and conditions of the  Intercreditor  Agreement shall remain in
full force and effect.  All  references  in the  Intercreditor  Agreement or any
related agreement or instrument to the  Intercreditor  Agreement shall hereafter
refer to the Intercreditor Agreement, as amended hereby.

     ss.9.  No Implied  Waiver.  Except as expressly  provided  herein,  nothing
contained  herein shall  constitute a waiver of, impair or otherwise  affect any
obligations  of the  Borrower  under the Bank  Documents  or the GE Capital Loan
Documents,  any other obligations of either Lender or any right of either Lender
consequent thereon.

     ss.10.  Governing  Law.  This  Amendment  is  intended to take effect as an
instrument  under seal and shall be  construed  according to and governed by the
internal laws of the State of New York.

<PAGE>
                                      -8-

     ss.11.  Execution in  Counterparts.  This  Amendment may be executed in any
number of  counterparts  and by each  party on a separate  counterpart,  each of
which when so executed  and  delivered  shall be an  original,  but all of which
together shall  constitute one instrument.  In proving this Amendment,  it shall
not be necessary to produce or account for more than one such counterpart signed
by the party against whom enforcement is sought.

<PAGE>
                                      -9-

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first above written.

                                        SOVEREIGN BANK, as successor to
                                        FLEET NATIONAL BANK, formerly known
                                        as BANKBOSTON, N.A., as successor in
                                        interest to RHODE ISLAND HOSPITAL
                                        TRUST NATIONAL BANK

                                        By: /s/ Patricia Malerba
                                           ---------------------------------
                                           Name: Patricia Malerba
                                           Title: Vice President

                                        GENERAL ELECTRIC CAPITAL
                                          CORPORATION, as Agent

                                        By: /s/ James F. Hogan, Jr.
                                           ---------------------------------
                                           Name: James F. Hogan, Jr.
                                           Title: Duly Authorized Signatory

ACKNOWLEDGED AND AGREED:

  FINLAY FINE JEWELRY
    CORPORATION

  By: /s/ Bruce Zurlnick
     --------------------------
     Name: Bruce Zurlnick

     Title: Senior Vice President, Chief Financial
             Officer and Treasurer

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