* Enters into new agreement with CEO effective March 6

* To receive $1 mln as bonus

* Forgoes $2 mln of future severance payout

March 13 (Reuters) - Jeweler Finlay Enterprises (FNLY.OB) on Thursday March 12th entered into a new retention bonus agreement with Chief Executive Arthur Reiner that will see him forgo a future $2 million severance payout for a $1 million bonus deal, according to a regulatory filing.

The agreement, which took effect from March 6, entitles Reiner to two bonus payments of $500,000 each.

The first payment is to be made within five days of the agreement, and the second amount will be paid on or before April 1, if Reiner continues to be employed by the company till then, the filing showed.

Finlay, hurt by liquidity woes, announced last month it was shutting its department store outlets over the near-term to concentrate on specialty jewelry stores. (Reporting by Mihir Dalal in Bangalore; Editing by Anil D'Silva)