Document:

EX-10.2

COMMON STOCK PURCHASE WARRANT

NEITHER THE WARRANT REPRESENTED BY THIS CERTIFICATE NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF
ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE
SKY LAWS.

FX REAL ESTATE AND ENTERTAINMENT INC.

No. [      ] XXXXXX Shares

THIS CERTIFIES that, for value received, XXXXXX (the “Holder”), is entitled to
subscribe for and purchase from FX Real Estate and Entertainment Inc., a Delaware corporation (the
“Company”), upon the terms and conditions set forth herein, at any time after the date
hereof (the “Issue Date”), and before 5:00 p.m., New York City time, on XXXXX      , 2015 (the
“Exercise Period”) up to XXXXXXXXXXXXXX (XXXXXXX) shares, $0.01 par value, of the Company
(“Common Stock”), at an exercise price of XXXXXXXX ($0.XXXX) per share (the “Exercise
Price”). As used herein the term “this Warrant” shall mean and include this Warrant and
any Warrant or Warrants hereafter issued as a consequence of the exercise or transfer of this
Warrant in whole or in part.

The number of shares of Common Stock issuable upon exercise of the Warrant (the “Warrant
Shares”) and the Exercise Price may be adjusted from time to time as hereinafter set forth.

1. This Warrant may be exercised, at any time and from time to time, during the Exercise
Period, as to the whole or any lesser number of the respective whole Warrant Shares, as follows:

(a) by the surrender of this Warrant (with the Form of Election at the end hereof duly
executed) to the Company at its office as set forth in the Form of Election attached hereto, or at
such other place as is designated in writing by the Company, together with payment to the Company
of an amount equal to the then applicable Exercise Price multiplied by the number of respective
Warrant Shares for which this Warrant is being exercised. Such payment may be made by certified or
bank cashier’s check payable to the order of the Company or by wire transfer of immediately
available funds to an account or accounts specified in advance by the Company; or

(b) by surrender of this Warrant (with the Notice of Cashless Exercise at the end hereof duly
executed) to the Company at its office as set forth in the Notice of Cashless Exercise attached
hereto, or at such other place as is designated in writing by the Company, in which event the
Company shall issue to the Holder the number of Warrant Shares determined as follows:

X = Y (A-B)/A

where:

X = the number of Warrant Shares to be issued to the Holder.

Y = the number of Warrant Shares with respect to which this Warrant is being
exercised.

A = the last sale price of the Common Stock for the trading day immediately
prior to the date of exercise, as reported on any national securities
exchange, market or quotation system on which the Common Stock is then
listed for trading or quoted.

B = the Exercise Price.

2. Upon the exercise of the Holder’s rights to purchase Warrant Shares, either pursuant to
Section 1(a) or 1(b) above, the Holder shall be deemed to be the holder of record of the Warrant
Shares issuable upon such exercise, notwithstanding that the transfer books of the Company shall
then be closed or instruments representing such Warrant Shares shall not then have been actually
delivered to the Holder. For purposes of Rule 144 promulgated under the Securities Act of 1933, as
amended (the “Act”), it is intended, understood and acknowledged that the Warrant Shares
issued in a cashless exercise transaction pursuant to Section 1(b) above shall be deemed to have
been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have
commenced, on the Issue Date of this Warrant. As soon as practicable after the exercise of this
Warrant either pursuant to Section 1(a) or 1(b) above, the Company shall cause a statement from its
transfer agent and registrar for the Common Stock (the “Transfer Agent”) evidencing
ownership of the Warrant Shares issuable upon such exercise, registered in the name of the Holder
or its designee on the Transfer Agent’s records in book-entry form under The Direct Registration
System, to be issued by the Transfer Agent to the Holder. If the Warrant should be exercised in
part only, the Company shall, upon surrender of this Warrant for cancellation, execute and deliver
a new Warrant evidencing the right of the Holder to purchase the balance of the Warrant Shares (or
portions thereof) subject to purchase hereunder.

3. The Company shall register this Warrant, upon records to be maintained by the Company for
that purpose (the “Warrant Register”), in the name of the record holder from time to time.
The Company shall be entitled to treat the registered holder of any Warrant on the Warrant Register
as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or
other claim to or interest in such Warrant on the part of any other person, and shall not be liable
for any registration or transfer of Warrants which are registered or to be registered in the name
of a fiduciary or the nominee of a fiduciary unless made with the actual knowledge that a fiduciary
or nominee is committing a breach of trust in requesting such registration or transfer, or with the
knowledge of such facts that its participation therein amounts to bad faith. This Warrant shall be
transferable only on the books of the Company upon delivery thereof duly endorsed by the Holder or
by his duly authorized attorney or representative, or accompanied by proper evidence of succession,
assignment, or authority to transfer. In all cases or transfer by an attorney, executor,
administrator, guardian, or other legal representative, duly authenticated evidence of his or its
authority shall be produced. Upon any registration of transfer, the Company shall promptly deliver
a new Warrant or Warrants to the person entitled thereto. The Company shall have no obligation to
cause Warrants to be transferred on its books to any person if, in the opinion of counsel to the
Company, such transfer does not comply with the provisions of the Act, and the rules and
regulations promulgated thereunder.

4. The Company shall at all times reserve and keep available out of its authorized and
unissued Common Stock, solely for the purpose of providing for the exercise of the rights to
purchase all Warrant Shares granted pursuant to this Warrant, such number of shares of Common Stock
as shall, from time to time, be sufficient therefor. The Company covenants that all shares of
Common Stock issuable upon exercise of this Warrant, upon receipt by the Company of the full
Exercise Price therefor if such exercise is pursuant to Section 1(a) above, or upon receipt by the
Company of the Notice of Cashless Exercise duly executed if such exercise is pursuant to Section
1(b) above, shall be duly authorized, validly issued, fully paid, nonassessable, and free of
preemptive rights.

5. (a) In case the Company shall at any time after the date this Warrant was first issued (i)
declare a dividend on the outstanding shares of its Common Stock payable in shares of its capital
stock, (ii) subdivide the outstanding shares of its Common Stock, (iii) combine the outstanding
shares of its Common Stock into a smaller number of shares, or (iv) issue any shares of its capital
stock by reclassification of the Common Stock (including any such reclassification in connection
with a consolidation or merger in which the Company is the continuing corporation), then, in each
case, the Exercise Price, and the number of Warrant Shares issuable upon exercise of this Warrant,
in effect at the time of the record date for such dividend or of the effective date of such
subdivision, combination, or reclassification, shall be proportionately adjusted so that the Holder
after such time shall be entitled to receive the aggregate number and kind of shares which, if such
Warrant had been exercised immediately prior to the record date therefor, he would have owned upon
such exercise and been entitled to receive by virtue of such dividend, subdivision, combination, or
reclassification. Such adjustment shall be made successively whenever any event listed above shall
occur.

(b) No adjustment in the Exercise Price shall be required if such adjustment is less than
$.01; provided, however, that any adjustments which by reason of this Section 5 are
not required to be made shall be carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 5 shall be made to the nearest cent or to the
nearest one-thousandth of a share, as the case may be.

(c) In any case in which this Section 5 shall require that an adjustment in the Exercise Price
be made effective as of a record date for a specified event, the Company may elect to defer, until
the occurrence of such event, issuing to the Holder, if the Holder exercised this Warrant after
such record date, the shares of Common Stock, if any, issuable upon such exercise over and above
the shares of Common Stock, if any, issuable upon such exercise on the basis of the Exercise Price
in effect prior to such adjustment; provided, however, that the Company shall
deliver to the Holder a due bill or other appropriate instrument evidencing the Holder’s right to
receive such additional shares upon the occurrence of the event requiring such adjustment.

(d) Whenever there shall be an adjustment as provided in this Section 5, the Company shall
promptly cause written notice thereof to be sent by registered mail, postage prepaid, to the
Holder, at its address as it shall appear in the Warrant Register, which notice shall be
accompanied by an officer’s certificate setting forth the number of Warrant Shares purchasable upon
the exercise of this Warrant and the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment and the computation thereof, which officer’s
certificate shall be conclusive evidence of the correctness of any such adjustment absent manifest
error.

6. (a) In case of any consolidation with or merger of the Company with or into another entity
(other than a merger or consolidation in which the Company is the surviving or continuing entity),
or in case of any sale, lease, or conveyance to another entity of the property and assets of any
nature of the Company as an entirety or substantially as an entirety, such successor, leasing, or
purchasing entity, as the case may be, shall (i) execute with the Holder an agreement providing
that the Holder shall have the right thereafter to receive upon exercise of this Warrant solely the
kind and amount of shares of stock and other securities, property, cash, or any combination thereof
receivable upon such consolidation, merger, sale, lease, or conveyance by a holder of the number of
shares of Common Stock for which this Warrant might have been exercised immediately prior to such
consolidation, merger, sale, lease, or conveyance and (ii) take or cause to be taken all necessary
equityholder and corporate action, including amending its Certificate of Incorporation or
otherwise, required to effect such agreement. Such agreement shall provide for adjustments which
shall be as nearly equivalent as practicable to the adjustments in Section 5.

(b) In case of any reclassification or change of the shares of Common Stock issuable upon
exercise of this Warrant (other than a change in par value, or from no par value to a specified par
value, or as a result of a subdivision or combination, but including any change in the shares into
two or more classes or series of shares), or in case of any consolidation or merger of another
entity into the Company in which the Company is the continuing entity and in which there is a
reclassification or change (including a change to the right to receive cash or other property) of
the shares of Common Stock (other than a change in par value, or from no par value to a specified
par value, or as a result of a subdivision or combination, but including any change in the shares
into two or more classes or series of shares), the Holder shall have the right thereafter to
receive upon exercise of this Warrant solely the kind and amount of shares of stock and other
securities, property, cash, or any combination thereof receivable upon such reclassification,
change, consolidation, or merger by a holder of the number of shares of Common Stock for which this
Warrant might have been exercised immediately prior to such reclassification, change,
consolidation, or merger. Thereafter, appropriate provision shall be made for adjustments which
shall be as nearly equivalent as practicable to the adjustments in Section 5.

(c) In the event that the Company (i) issues as a dividend or other similar distribution (an
“Extraordinary Dividend”) on all of its then outstanding Common Stock, (A) securities of
the Company of a class other than Common Stock, (B) rights, warrants or options (individually, a
“Right” and collectively, the “Rights”) to acquire any securities of the Company
(including Common Stock) or (C) evidences of its indebtedness or assets, or (ii) issues any
dividend or other similar distribution (a “Secondary Extraordinary Dividend”) on any such
securities in the form of securities of the Company (including Common Stock) (any securities (other
than Rights) issued as an Extraordinary Dividend or Secondary Extraordinary Dividend or issued upon
exercise of any Rights issued as an Extraordinary Dividend or Secondary Extraordinary Dividend
shall be referred to as “Dividend Securities”):

(x) this Warrant shall thereafter be exercisable for (1) the original number of shares of
Common Stock (subject to adjustment as herein provided), (2) such Dividend Securities and Rights as
would theretofore have been issued in respect of such shares (adjusted as herein provided) had such
shares been outstanding at the time of such Extraordinary Dividend, and (3) any Dividend Securities
that would theretofore have been issued as a Secondary Extraordinary Dividend in respect of such
Dividend Securities had such Dividend Securities been outstanding at the time of such Secondary
Extraordinary Dividend; and

(y) any Right issued as an Extraordinary Dividend or a Secondary Extraordinary Dividend shall
(1) expire upon the later of (a) the original expiration date of such Right or (b) the 180th day
following the exercise of this Warrant, and (2) be exercisable for (a) the Dividend Securities
issuable upon exercise of such Right and (b) any property theretofore issued as a Secondary
Extraordinary Dividend in respect of such Dividend Securities.

(d) In the event that at any time while this Warrant is outstanding, the Company shall offer
to sell to all of the holders of Common Stock as a class, rights or options to purchase Common
Stock or rights or options to purchase any stock or securities convertible into or exchangeable for
Common Stock (such exchangeable or convertible stock or securities being herein called
“Convertible Securities”), whether or not such rights or options are immediately
exercisable, and the price per share for which Common Stock is issuable upon the exercise of such
rights or options or upon conversion or exchange of such Convertible Securities (determined by
dividing (i) the total amount received or receivable by the Company upon issuance and sale of such
rights or options, plus the aggregate amount of additional consideration payable to the Company
upon the exercise of all such rights or options, plus, in the case of rights or options which
relate to Convertible Securities, the aggregate amount of additional consideration, if any, payable
upon the conversion or exchange of all such Convertible Securities, by (ii) the total maximum
number of shares of Common Stock issuable upon the exercise of all such rights or options or upon
the conversion or exchange of all such Convertible Securities issuable upon the exercise of all
such rights or options) shall be less than the Exercise Price in effect immediately prior to the
initial sale of any such rights or options, the Company shall offer to sell to the Holder, at the
price and upon the terms at which such rights or options are offered to holders of its Common
Stock, such number of such rights or options as the Holder would have been entitled to purchase had
the Holder exercised this Warrant immediately prior to the commencement of the offering of such
rights or options.

(e) The above provisions of this Section 6 shall similarly apply to successive
reclassifications and changes of shares of Common Stock and to successive consolidations, mergers,
sales, leases, or conveyances.

7. In case at any time the Company shall propose:

(a) to pay any dividend or make any distribution on shares of Common Stock in shares of Common
Stock or make any other distribution (other than regularly scheduled cash dividends which are not
in a greater amount per share than the most recent such cash dividend) to all holders of Common
Stock; or

(b) to issue any rights, warrants, or other securities to all holders of Common Stock
entitling them to purchase any additional shares of Common Stock or any other rights, warrants, or
other securities; or

(c) to effect any reclassification or change of outstanding shares of Common Stock, or any
consolidation, merger, sale, lease, or conveyance, described in Section 6; or

(d) to effect any liquidation, dissolution, or winding-up of the Company; or

(e) to take any other action which under the express terms of this Warrant would cause an
adjustment to the Exercise Price;

then, and in any one or more of such cases, the Company shall give written notice thereof, by
registered mail, postage prepaid, to the Holder at the Holder’s address as it shall appear in the
Warrant Register, mailed at least 30 days prior to (i) the date as of which the holders of record
of shares of Common Stock to be entitled to receive any such dividend, distribution, rights,
warrants, or other securities are to be determined, (ii) the date on which any such
reclassification, change of outstanding shares of Common Stock, consolidation, merger, sale, lease,
conveyance, liquidation, dissolution, or winding-up is expected to become effective, and the date
as of which it is expected that holders of record of shares of Common Stock shall be entitled to
exchange their shares for securities or other property, if any, deliverable upon such
reclassification, change of outstanding shares, consolidation, merger, sale, lease, conveyance of
property, liquidation, dissolution, or winding-up, or (iii) the date of such action which would
require an adjustment to the Exercise Price.

8. The issuance of any Warrant Shares or other securities upon the exercise of this Warrant,
and the delivery of certificates or other instruments representing such shares or other securities,
shall be made without charge to the Holder for any tax or other charge in respect of such issuance.
The Company shall not, however, be required to pay any tax which may be payable in respect of any
transfer involved in the issue and delivery of any certificate or other instrument in a name other
than that of the Holder and the Company shall not be required to issue or deliver any such
certificate or instrument unless and until the person or persons requesting the issue thereof shall
have paid to the Company the amount of such tax or shall have established to the satisfaction of
the Company that such tax has been paid.

9. Any certificate evidencing the Warrant Shares issued upon exercise of the Warrant and
registered in the name of the Holder or its designee on the Transfer Agent’s records in book-entry
form under The Direct Registration System shall contain the following notation:

“THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE
STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES
LAWS OR BLUE SKY LAWS.”

10. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction, or mutilation of any Warrant (and upon surrender of any Warrant if mutilated), and
upon reimbursement of the Company’s reasonable incidental expenses, the Company shall execute and
deliver to the Holder thereof a new Warrant of like date, tenor, and denomination.

11. The Holder of any Warrant shall not have, solely on account of such status, any rights of
a stockholder of the Company, either at law or in equity, or to any notice of meetings of
stockholders or of any other proceedings of the Company, except as provided in this Warrant.

12. Any notice or other communication required or permitted to be given hereunder shall be in
writing and shall be mailed by certified mail, return receipt requested or sent by Federal Express,
Express Mail, or similar overnight delivery or courier service or delivered (in person or by
telecopy, telex, or similar telecommunications equipment) against receipt to the party to whom it
is to be given, if sent to the Company, at: 650 Madison Avenue, New York, NY 10022, Attention:
Corporate Secretary; or if sent to the Holder, at the Holder’s address as it shall appear on the
Warrant Register; or to such other address as the party shall have furnished in writing in
accordance with the provisions of this Section 12. Any notice or other communication given by
certified mail shall be deemed given five days after the time of certification thereof, except for
a notice changing a party’s address which will be deemed given at the time of receipt thereof. Any
notice given by other means permitted by this Section 12 shall be deemed given at the time of
receipt thereof.

13. This Warrant shall be binding upon the Company and its successors and assigns and shall
inure to the benefit of the Holder and its successors and assigns.

14. This Warrant shall be construed in accordance with the laws of the State of New York
applicable to contracts made and performed within such State, without regard to principles of
conflicts of law, except to the extent that the Delaware General Corporation Law may govern by
virtue of the fact that the Company is incorporated under the laws of the State of Delaware.

15. The Company irrevocably consents to the jurisdiction of the US District Court for the
Southern District of New York and courts located in New York County in connection with any action
or proceeding arising out of or relating to this Warrant, any document or instrument delivered
pursuant to, in connection with or simultaneously with this Warrant, or a breach of this Warrant or
any such document or instrument. In any such action or proceeding, the Company waives personal
service of any summons, complaint or other process.

16. The Company shall not be required to issue or cause to be issued fractional Warrant Shares
on the exercise of this Warrant. If any fraction of a Warrant Share would, except for the
provisions of this Section, be issuable upon exercise of this Warrant, the number of Warrant Shares
to be issued will be rounded up to the nearest whole share.

17. Put Option.

(a) If a Cash Transaction occurs, the Holder hereof shall have the option (the “Put
Option”) to sell to the Company all of the shares of Common Stock represented by this Warrant,
for a purchase price equal to the product of (i) the number of shares of Common Stock represented
by this Warrant multiplied by (ii) (A) the per share cash amount paid to each holder of Common
Stock in respect of such Cash Transaction minus (B) the Exercise Price per Warrant Share.

For purposes of this Section 17, a “Cash Transaction” means (i) a consolidation or
merger to which the Company is a party (other than a Primary Merger), (ii) any sale or other
conveyance of all or substantially all of the assets of the Company, or (iii) any cash tender offer
or similar transaction for all or part of the Common Stock, and in each such case all of the
consideration paid to the holders of Common Stock in respect of such transaction is comprised of
cash.

For purposes of this Section 17, a “Primary Merger” is any consolidation or merger in
which the Company is the surviving corporation other than any such consolidation or merger in which
the persons who held Common Stock immediately prior to the approval of such transaction by the
Company’s shareholders do not continue to hold a majority of such Common Stock after such
transaction becomes effective.

(b) The Company shall provide the Holder hereof with notice of any Cash Transaction at the
same time and in the same manner that notice thereof is provided to holders of Common Stock;
provided that if the Company provides notice to the holders of Common Stock of such Cash
Transaction less than twenty (20) calendar days prior to the effective date thereof, the Company
shall be required to provide the Holder hereof with notice of such Cash Transaction at least twenty
(20) calendar days prior to the effective date thereof. If the Holder hereof exercises the Put
Option, it shall provide notice thereof to the Company no less than ten (10) calendar days prior to
the consummation of such Cash Transaction.

(c) Payment for the Put Option shall be paid to the Holder hereof at the same time and in the
same manner as the holders of Common Stock receive their distributions of cash with respect to such
Cash Transaction. In the event that the amount of the cash payment to any holder of Common Stock
in respect of any Cash Transaction increases after the initial payment in respect thereof, the
Company shall pay the ratable amount of such increase attributable to this Warrant to the Holder
hereof. Any payment required pursuant to this Section 16 may, at the option of the Holder, be made
by check payable to the order of the Holder hereof duly mailed or delivered to its registered
address or, if requested by the Holder hereof, by wire transfer of federal or other immediately
available funds to its account at any bank or trust company in the United States of America.

(d) In the event that (i) any consolidation or merger in respect of which the Put Option shall
have been exercised does not become effective, (ii) shares of securities into which this Warrant is
exercisable are not purchased pursuant to any tender offer in respect of which the Put Option shall
have been exercised, or (iii) any holder of securities into which this Warrant is exercisable shall
have the right to withdraw securities deposited pursuant to any tender offer in respect of which
the Put Option shall have been exercised (any such event specified in clause (i), (ii) or (iii)
being hereinafter referred to as a “Withdrawal”), within sixty (60) days after the
occurrence of such Withdrawal, the Holder hereof shall have the right to rescind the exercise of
the Put Option.

[Signature page follows]

	 	 	 
	Dated: [      ], 2010
	 	FX REAL ESTATE AND ENTERTAINMENT INC.

	 	 	By:

	 	 	 

	 	 	Name:

	 	 	Title:

[WARRANT SIGNATURE PAGE]

1

FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer the attached Warrant.)

FOR VALUE RECEIVED,        hereby sells, assigns, and transfers
unto        a Warrant to purchase shares of common stock, $0.01 par value,
of FX Real Estate and Entertainment Inc., a Delaware corporation (the “Company”), together
with all right, title, and interest therein, and does hereby irrevocably constitute and appoint
     attorney to transfer such Warrant on the books of the Company, with
full power of substitution.

Dated:       

Signature

NOTICE

The signature on the foregoing Assignment must correspond to the name as written upon the face
of this Warrant in every particular, without alteration or enlargement or any change whatsoever.

2

	 	 	 
	To:
	 	FX Real Estate and Entertainment Inc.

650 Madison Avenue, New York, NY 10022

Attention: Corporate Secretary

ELECTION TO EXERCISE

The undersigned hereby exercises its rights to purchase        Warrant Shares covered
by the within warrant and tenders payment herewith in the amount of $      in accordance with
the terms thereof, and requests that such Warrant Shares be issued and registered in the name of
the person specified below on the Transfer Agent’s records in book-entry form under The Direct
Registration System:

(Print Name, Address and Social Security

or Tax Identification Number)

and, if such number of Warrant Shares shall not be all the Warrant Shares covered by the within
Warrant, that a new Warrant for the balance of the Warrant Shares covered by the within Warrant be
registered in the name of, and delivered to, the undersigned at the address stated below.

	 	 	 
	Dated:
	 	Name

(Print)

	Address:
	 	 	(Signature)

3

	 	 	 
	To:
	 	FX Real Estate and Entertainment Inc.

650 Madison Avenue, New York, NY 10022

Attention: Corporate Secretary

NOTICE OF CASHLESS EXERCISE

(To be executed upon exercise of Warrant

pursuant to Section 1(b))

The undersigned hereby irrevocably elects to exchange its Warrant for        Warrant
Shares pursuant to the cashless exercise provisions of the within Warrant, as provided for in
Section 1(b) of such Warrant, and requests that a certificate or certificates for such Warrant
Shares be issued in the name of and delivered to:

(Print Name, Address and Social Security

or Tax Identification Number)

and, if such number of Warrant Shares shall not be all the Warrant Shares which the undersigned is
entitled to purchase in accordance with the within Warrant, that a new Warrant for the balance of
the Warrant Shares covered by the within Warrant be registered in the name of, and delivered to,
the undersigned at the address stated below.

	 	 	 
	Dated:
	 	Name

(Print)

	Address:
	 	 	(Signature)

4EX-10.1

SETTLEMENT AGREEMENT AND RELEASE

THIS SETTLEMENT AGREEMENT AND RELEASE (“Agreement”) is made and entered into by and between
MedQuist Inc. and MedQuist Transcriptions, Ltd. (collectively, “MedQuist” or “Defendants”), on the
one hand, and Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals, The Permanente
Medical Group, Inc., Southern California Permanente Medical Group, Kaiser Foundation Health Plan of
the Mid-Atlantic States, Inc., and Kaiser Foundation Health Plan of Colorado, (collectively,
“Plaintiffs”), on the other hand. MedQuist and Plaintiffs are each individually referred to herein
as a “Party,” and collectively as the “Parties.” This Agreement shall become binding and effective
on the date it is fully executed by all Parties and their counsel (the “Effective Date”).

1. Recitals

1.1. There is now pending in the United States District Court, District of New Jersey, an
action entitled Kaiser Foundation Health Plan, Inc., et al. v. MedQuist Inc. et al., Case No.
08-cv-4376-JBS-AMD (the “Action”).

1.2. Plaintiffs filed the Action against MedQuist alleging, inter alia, that Defendants
over-billed Plaintiffs for medical transcription services provided to Plaintiffs by MedQuist. In
the Complaint, Plaintiffs aver, inter alia, causes of action for common law fraud, violation of
California Business and Professions Code §17200, breach of contract, demand for accounting, and
unjust enrichment, as more fully reflected in Plaintiffs’ Complaint. MedQuist has denied any
liability for the allegations of the Action, as more fully reflected in MedQuist’s Answer and
Separate Defenses.

1.3. Any and all claims that were asserted in the Action or could have been asserted in the
Action based on the facts alleged therein, including the facts alleged in the Complaint and the
Answer and Separate Defenses thereto, are collectively referred to herein as the “Dispute.”

1.4. The Parties have reached an agreement in principle on the terms of a complete and final
resolution of the Dispute as, by and among MedQuist and Plaintiffs.

2. Agreement

In consideration of the recitals above, and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:

2.1. Settlement Payment. MedQuist agrees to pay the total sum of Two (2) Million
Dollars (the “Settlement Payment”), by wire transfer payable to Kaiser Foundation Health Plan, Inc.
to the account listed in Attachment A in accordance with the instructions set forth therein. The
Settlement Payment shall be paid within three (3) business days after the Effective Date of this
Agreement. Plaintiffs shall be solely responsible for determining the allocation of and
distributing the Settlement Payment to and among Plaintiffs and/or their counsel. Other than being
responsible for paying the Settlement Payment as outlined above, MedQuist shall not have any
responsibility or liability with respect to the payment, allocation, or distribution of any sum to
any of the individual Plaintiffs and/or their counsel. To the extent that any disputes may arise
between or among Plaintiffs regarding distribution of the Settlement Payment, such disputes shall
be resolved solely by and among Plaintiffs and their counsel and shall not forestall or otherwise
impact or affect the Effective Date of this Agreement and/or the Releases contained in Section 3.

2.2. Voluntary Dismissal of Action. On July 15, 2010, after the Parties notified the
Court that they had reached an agreement in principle to settle the Action, the Court entered an
Order of Dismissal without costs and without prejudice to the right, upon motion and good cause
shown, within 60 days, to reopen the Action. Upon payment of the Settlement Payment to Plaintiffs,
the Parties agree that the Dismissal shall become final, with prejudice and without right of
appeal, and the Parties further agree that each of the Parties shall be solely responsible for
their own costs. The Parties also agree that the Court shall retain continuing jurisdiction over
implementation of this Agreement.

3. Releases

Immediately upon payment of the Settlement Payment by MedQuist as set forth in Section 2.1,
and subject to the provisions of this Agreement, the following releases shall become binding and
enforceable:

3.1 Matters Released by Plaintiffs. Except as to such rights or claims as may be
created by this Agreement, Plaintiffs, on behalf of themselves and their related and/or associated
facilities and affiliates, and all of their respective divisions, joint venturers, parents,
subsidiaries, predecessor and successor corporations, and all past and present partners, directors,
officers, shareholders, agents, servants, employees, representatives, assigns, heirs, successors in
interest, predecessors in interest, administrators, adjustors and attorneys, hereby release, remise
and forever discharge MedQuist, including all of its related and/or associated facilities and
affiliates, and all of its respective divisions, affiliates, parents, subsidiaries, predecessor and
successor corporations, and all past and present partners, directors, officers, shareholders,
agents, servants, employees, representatives, assigns, heirs, successors in interest, predecessors
in interest, administrators, adjustors and attorneys, from any and all claims, demands, causes of
action, obligations under any implied covenant of good faith and fair dealing, damages and
liabilities heretofore or hereafter arising out of or related to the Action and/or the Dispute.

3.2. Matters Released by MedQuist. Except as to such rights or claims as may be
created by this Agreement, MedQuist on behalf of itself and its related and/or associated
facilities and affiliates, and all of its respective divisions, affiliates, parties, joint
venturers, parents, subsidiaries, predecessor and successor corporations, and all past and present
partners, directors, officers, shareholders, agents, servants, employees, representatives, assigns,
heirs, successors in interest, predecessors in interest, administrators, adjustors and attorneys,
hereby releases, remises and forever discharges Plaintiffs, including all of their related and/or
associated facilities and affiliates, and all of their respective divisions, affiliates, parents,
subsidiaries, predecessor and successor corporations, and all past and present partners, directors,
officers, shareholders, agents, servants, employees, representatives, assigns, heirs, successors in
interest, predecessors in interest, administrators, adjustors and attorneys, from any and all
claims, demands, causes of action, obligations under any implied covenant of good faith and fair
dealing, damages and liabilities heretofore or hereafter arising out of, or related to the Action
and/or the Dispute. Notwithstanding the foregoing, the Parties agree that MedQuist is not waiving,
and expressly reserves, the right to seek payment from Plaintiffs for any and all accounts
receivable, including any and all accounts receivable over 30 days as of the Effective Date,
provided that such accounts receivable (1) pertain to services provided to Plaintiffs on or after
May 1, 2005 and (2) do not pertain to any accounts billed based on an AAMT line. The Parties
further agree that Plaintiffs are not waiving, and expressly reserve, the right to contest any such
alleged accounts receivable on any grounds.

3.3. The matters released by Plaintiffs in Section 3.1 and the matters released by MedQuist in
Section 3.2 are collectively referred to as the “Released Matters.” It is the intention of the
Parties that this Agreement be effective as a full and final release of each and every matter
referred to in the Released Matters. In furtherance of this intention, each Party acknowledges that
it may hereafter discover facts in addition to or different from those which it now knows or
believes to be true with respect to the subject matter of this Agreement, but it is their intention
to fully and finally and forever settle and release any and all matters, disputes and differences,
known or unknown, suspected or unsuspected, which do now exist, may exist or heretofore have
existed between them which relate to the Released Matters.

3.4. The Releases contained in this Agreement shall be and remain in effect as full and
complete general releases, notwithstanding the discovery or existence of any additional or
different facts. In particular, each Party hereby expressly waives California Civil Code § 1542,
which states: “A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if known by him or
her must have materially affected his or her settlement with the debtor.” Each Party also hereby
waives any and all federal and state statutes similar in substance, meaning or application to
California Civil Code § 1542.

3.5 Each Party warrants and represents to each other Party that the effect and import of the
release and waiver provisions above have been explained to it by its attorney.

4. Representations and Warranties

Each Party represents and warrants to and agrees with the other as follows:

4.1 This Agreement is being entered into by Plaintiffs and Defendants, on their own behalf and
on behalf of each of their own respective divisions, partners, joint venturers and affiliates,
etc., as set forth more fully in Sections 3.1 and 3.2 above.

4.2 The Parties have not been induced to enter into this Agreement by any representations and
warranties made by any other Party to this Agreement (other than such representations which are
expressly contained in this Agreement).

4.3 The Parties each have had the opportunity to receive independent legal advice from
attorneys of their choice with respect to the advisability of making the settlement and release
provided herein and of executing this Agreement. Before the execution of the Agreement, each Party
and/or its attorneys have reviewed the Agreement and have had the opportunity to negotiate
revisions to the Agreement. Further, each Party acknowledges, represents, and declares that it has
carefully read this Agreement, knows the contents, and executes the same voluntarily and without
duress or pressure.

4.4 There have been no other agreements or understandings between the Parties hereto with
respect to this Agreement with the exception of those agreements and understandings memorialized in
writing in this Agreement.

4.5 Each Party is the sole and lawful owner of all rights, title and interest in and to every
claim and other matter released herein, and no Party has assigned, granted or transferred in any
way to any other person or entity any of the claims, causes of action, costs or demands, or any
part thereof, of the Released Matter.

4.7 The execution, delivery and performance of this Agreement have been duly authorized by all
requisite action on the part of each such Party.

4.8 Any individual signing this Agreement on behalf of a corporation, partnership or trust has
full authority to do so.

5. Confidentiality

5.1 With the exception of the scope of the release set forth above in Section 3, each Party
agrees to keep the terms of this Agreement, including the amount of the Settlement Payment,
completely confidential, and not to disclose such information (without first receiving the express
written permission of the other Parties) other than: (i) as may be required by applicable law,
governmental order, or regulation or by order or decree of any court of competent jurisdiction;
(ii) as part of its normal reporting requirements or review procedures to its parent company(ies),
auditors, attorneys or other professional advisors; (iii) in connection with a possible sale,
merger, or other consolidation transaction involving it or its parent, subsidiary and/or affiliated
company(ies); or (iv) in cooperation with any official investigation by any local, state or federal
agency or officer. Specifically with regard to disclosure of the Settlement Payment, the amount of
the Settlement Payment shall be confidential and not revealed to any third party, except as above.

5.2 In the event that any third party makes any inquiries about the Action or the Dispute
(other than a situation covered by the circumstances set forth above), the Parties agree to state
that “the dispute was amicably resolved following settlement discussions” and shall not provide any
other details regarding the settlement or this Agreement. Except as set forth above, including in
Paragraph 5.1, neither Party shall divulge or disclose to any third party any of the material terms
and conditions of this Agreement without the prior written consent of the other Party. In the event
that disclosure is required pursuant to clause (i) of the first sentence of Section 5.1, the person
or Party making disclosure shall seek confidential treatment of such information. In the event that
disclosure is required pursuant to clause (ii) or (iii) of the first sentence of Section 5.1, the
person or Party making disclosure shall take reasonable efforts to ensure that the confidentiality
of this Agreement and its terms are maintained.

5.3 Upon payment of the Settlement Payment, Plaintiffs shall immediately dissolve any bar or
other prohibition that may have been put in place preventing or restricting Plaintiffs from
contracting with MedQuist Inc., or any affiliated or related companies, as a result of the Dispute
that is the subject of this Agreement, and MedQuist Inc, and its affiliated and related companies
are free to compete for and enter into contracts with Plaintiffs.

6. No Admission

This Agreement represents the settlement of disputed claims, and it does not represent any
admission of liability on the part of any Party hereto, each of which expressly denies such
liability. This Agreement may not be introduced into evidence or used in any action except in
connection with an action to enforce the terms of this Agreement.

7. Miscellaneous

7.1 Severability. If any term or provision of this Agreement shall be found to be
illegal or unenforceable, then, notwithstanding any such illegality or unenforceability, this
Agreement shall remain in full force and effect and such term or provision shall be deemed to be
deleted.

7.2 Entire Agreement. This Agreement constitutes the entire agreement of settlement
and release between Plaintiffs, on the one hand, and Defendants, on the other hand, with respect to
the Action and Dispute, and there are otherwise no other agreements expanding or modifying its
terms. All prior oral and/or written agreements regarding settlement of the Action and Dispute are
expressly superseded by this Agreement and are of no further force and/or effect. MedQuist does
have other, separate agreements with certain Plaintiffs regarding the continuing provision of
medical transcription and/or other services, which agreements are not released, modified or
superseded by this Agreement.

7.3 Modification. The provisions of this Agreement may be modified or amended only in
a writing signed by each of the Parties and expressly state that modification or amendment of this
Agreement is intended.

7.4 No Waiver. No breach of any provision of this Agreement may be waived unless in
writing signed by the Party against whom a waiver is asserted. Waiver of any one breach shall not
be deemed to be a waiver of any other breach of the same or any other provision hereof.

7.5 Counterparts. This Agreement may be signed by facsimile copies, .pdf, or otherwise
in counterparts, each of which shall be deemed an original, but all originals together shall
constitute only one and the same instrument, and it shall be deemed fully executed when signed by
all Parties whether the signatures of all Parties appear on the original or one or more copies of
this Agreement. Each Party agrees to sign two (2) originals of this Agreement so that each side of
the Action will have a fully executed original version of the Agreement.

7.6 Construction. Each Party to this Agreement has participated in the drafting and
preparation of this Agreement. Neither this Agreement nor any of its terms hereof shall be
construed under a doctrine of contract interpretation (including but not limited to, the doctrine
of contra proferentum) that construes the document against a Party or its representatives merely by
reason of such Party having responsibility for drafting or mutually proposing the Agreement or any
portion of it.

7.7 Attorneys’ Fees and Costs Related to the Dispute. The Parties shall bear their own
respective attorneys’ fees and costs which arose as a result of the Dispute and Action. Nothing in
this Agreement, however, shall impact any separate agreement or obligation regarding payment of
attorneys’ fees and/or costs as between MedQuist and the Individual Defendants.

7.8 Survival of Representations. All representations, warranties, and other agreements
contained in this Agreement shall survive the execution and delivery of this Agreement by all
Parties hereto.

7.9 Admissibility of Agreement. In any action or proceeding relating to this Agreement
(including, but not limited to, actions or proceedings relating to the releases, or retained rights
contained in this Agreement), the Parties stipulate that a fully executed copy of this Agreement
may be admissible to the same extent as the fully executed original of this Agreement.

7.10 Captions. The captions or headings of the Sections of this Agreement are for
convenience of reference only and in no way define, limit or affect the scope or substance of any
Section of this Agreement.

7.11 Notice and Cure.

7.11.1 All notices and other communications among the Parties in connection with this
Agreement shall be in writing addressed to the following persons or Parties, and shall be deemed
duly served, given and received (a) on the date of service, if served personally or sent by telex
or facsimile transmission (with appropriate confirmation of receipt) to the Party to whom notice is
to be given, or (b) on the fourth day after mailing, if mailed by first class registered or
certified mail, return receipt requested, postage pre-paid in the United States mail, or (c) on the
next day if sent by a nationally recognized courier for next day service and so addressed as
follows:

	 	 	 
	If to MedQuist:
	 	MedQuist Inc.

c/o Mark R. Sullivan, Esq.

1000 Bishops Gate Blvd., Suite 300

Mount Laurel, NJ 08054-4632

Facsimile: 856-206-4020

	with a copy to:
	 	Winston & Strawn LLP

Stephen R. Smerek, Esq.

333 South Grand Ave.

Los Angeles, CA 90071

Facsimile: 213-615-1750

	If to Plaintiffs:
	 	Kaiser Foundation Health Plan, Inc.

c/o Mark Zemelman, Esq.

SVP & General Counsel

1 Kaiser Plaza, Oakland, CA 94612

Facsimile: 510-267-2128

	with a copy to:
	 	White & Williams LLP

Gale White, Esq.

1650 Market Street

One Liberty Place, Suite 1800

Philadelphia, PA 19103

Facsimile: 215-789-7534

7.11.2 The Parties, by like notice, may designate another or additional address(es), facsimile
number(s) or person(s) to which notices shall be given in connection with this Agreement.

7.11.3 Except as otherwise expressly set forth herein, in the event that any Party believes
that another Party is in default or breach of any term of this Agreement (not including any default
or breach that cannot be remedied by additional time), the aggrieved Party shall give written
notice of the default or breach by facsimile, personal service, overnight delivery by a nationally
recognized courier, or first class registered or certified mail, return receipt requested, to the
other Party at the addresses identified above. The other Party shall then have ten (10) business
days to rectify the alleged default or breach and shall provide written notice to the complaining
Party of steps taken to rectify the alleged default or breach (the “Cure Period”). The complaining
Party shall withhold any legal action during the Cure Period, and to the extent that any alleged
default or breach shall be cured within the Cure Period, the Parties agree to treat such default or
breach as though it had not occurred.

7.12 Governing Law, Choice of Forum, Costs and Fees.

7.12.1 This Agreement shall be interpreted, construed, and enforced under and according to the
laws of the State of California, without regard to the choice of law rules of that or any other
jurisdiction. The Parties agree that any dispute, claim, or controversy to enforce or interpret
this Agreement, or alleging the breach hereof, shall be resolved exclusively in the State of
California or New Jersey.

7.12.2 In any action brought to enforce or interpret this Agreement, or alleging the breach
hereof, the prevailing Party shall be entitled to recover its reasonable expenses and costs,
including but not limited to reasonable attorneys’ fees.

IN WITNESS WHEREOF, the Parties hereby execute this Agreement with an Effective Date as set
forth above.

	 	 	 
	PLAINTIFFS KAISER FOUNDATION HEALTH PLAN,

INC., KAISER FOUNDATION HOSPITALS, KAISER

FOUNDATION HEALTH PLAN OF THE MID-ATLANTIC

STATES, INC., and KAISER FOUNDATION HEALTH

PLAN OF COLORADO

By:/s/ Mark Zemelman Dated: 8/11/10

	 	DEFENDANTS MEDQUIST INC. and MEDQUIST

TRANSCRIPTIONS, LTD.

By: /s/ Peter L. Masanotti Dated: 8/12/10
	 

	 	 
	Mark Zemelman

SVP & General Counsel, Kaiser

Foundation Health Plan, Inc.

	 	Peter L. Masanotti

Its Chief Executive Officer

	THE PERMANENTE MEDICAL GROUP, INC.

By:/s/ W. W. Petrick Dated:8/9/2010

	 	

	 

	 	

	Name: W.W. Petrick

Title: VP & General Counsel

	 	

	SOUTHERN CALIFORNIA PERMANENTE MEDICAL

GROUP

By: /s/ Paul Minardi, MD Dated:8/9/10

	 	

	 

	 	

	Name: Paul Minardi, MD

Title: Medical Director of Operations

	 	

1

APPROVED AS TO FORM:

	 	 	 
	WHITE & WILLIAMS, LLP

By: /s/ Gale White

	 	WINSTON & STRAWN LLP

By: /s/ Stephen R. Smerek
	 

	 	 
	Gale White

Attorneys for Plaintiffs

	 	Stephen R. Smerek

Attorneys for Defendants

LA:208358.2

LA:208358.2

2

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