Document:

FOURTH AMENDMENT
TO THE EMPLOYMENT
AGREEMENT 

THE FOURTH AMENDMENT TO THE
EMPLOYMENT AGREEMENT (the “Fourth Amendment”)
is made and entered effective the __ day of June 2009, by Ross Stores, Inc. (the
“Company”) and Michael Balmuth (the “Executive”). The Executive and the Company
previously entered into an Employment Agreement effective May 31, 2001; a First
Amendment to the Employment Agreement effective January 30, 2003; a Second
Amendment to the Employment Agreement effective May 18, 2005; and a Third
Amendment to the Employment Agreement effective April 6, 2007 (the original
Agreement; First Amendment to the Employment Agreement; Second Amendment to the
Employment Agreement; and Third Amendment to the Employment Agreement are
attached and collectively referred to herein as the “Agreement”), and it is now
the intention of the Executive and the Company to further amend the Agreement as
set forth below. Accordingly, the Executive and the Company now enter into this
Fourth Amendment. 

	      	I.	      	
      The Executive and the Company
      amend the Agreement by deleting Paragraph 1 of the Agreement in its
      entirety and replacing it with the following new Paragraph
  1:

					  
				      	
      1. Term. The employment of
      the Executive by the Company will continue as of the date hereof and end
      on January 28, 2012, unless extended or terminated in accordance with this
      Agreement, including the extensions contemplated both in paragraphs 1 and
      4(b). During March 2010, and during March every year thereafter (every one
      year) for so long as the Executive is employed by the Company, upon the
      written request of the Executive, the Board shall consider extending the
      Executive’s employment with the Company. Such request must be delivered to
      the Chairman of the Compensation Committee no later than the last day in
      February which precedes the March in which the requested extension will be
      considered. The Board shall advise the Executive, in writing, on or before
      the April 1st following its consideration of the Executive’s
      written request, whether it approves of such extension. The failure of the
      Board to provide such written advice shall constitute approval of the
      Executive’s request for the extension. If the Executive’s request for an
      extension is approved, this Agreement shall be extended one additional
      year.

					  
		II.		
      The Executive and the Company further amend
      the Agreement by deleting the first sentence of Paragraph 4(a) of the
      Agreement in its entirety and replacing it with the following new
      sentence:

				  
					
      4(a). Salary. During his employment, the Company shall pay the Executive a
      base salary of not less than One Million Twenty-Five Thousand Dollars
      ($1,025,000) per annum.

					 
				
      The Executive and the Company further amend
      the Agreement by deleting the fourth sentence of Paragraph 4(a) of the
      Agreement in its entirety and replacing it with the following new
      sentence:

				 
					
      In addition, during his employment, the
      Company shall pay the Executive each year an amount (“Premium Payment”)
      equal to the sum of: (i) the total premiums for such year on certain life
      insurance policies held in an irrevocable life insurance trust established
      by the Executive, with an aggregate face value of $12 million; and (ii) an
      amount necessary to gross-up Executive for any federal, state and local
      income tax liability attributable to the premium amounts.

					 
		III.		
      The Executive and the Company further amend
      the Agreement to delete the words “(the “Matching Contributions”) from the
      end of the second sentence of Paragraph 4(e) of the
    Agreement.

				 
		IV.		
      The Executive and the Company further amend
      the Agreement by deleting the first sentence of Paragraph 4(i) of the
      Agreement in its entirety and replacing it with the following new three
      sentences:

				      	
      4(i). Subject to the third sentence of this paragraph 4(i), the
      Executive and his spouse shall be entitled to continue, until their
      respective deaths, to participate (at no cost to the Executive and his
      spouse) in the following Company employee benefit plans and arrangements
      (or other benefit plans or arrangements providing substantially similar
      benefits) in which the Executive participates on the date hereof):
      medical, dental, vision and behavioral health insurance; life insurance;
      accidental death and dismemberment insurance; group excess personal
      liability (collectively, “Benefits”); and the Company shall annually
      provide the Executive for as long as he lives an amount equal to the
      maximum employer matching contribution permitted under the terms and
      limits of the Company’s 401(k) plan in effect during the year of such
      payment (assuming the Executive remained employed with the Company and
      made the maximum contribution to such plan permitted by law), grossed up
      to reflect the pretax nature of a 401(k) contribution (the “Matching
      Contribution”). Notwithstanding the preceding sentence, no payment
      provided in paragraph 4(a) [Salary] of this Agreement shall be considered
      a benefit plan or arrangement pursuant to this paragraph 4(i) and the
      Executive, or his spouse, shall not be entitled to continuation of any
      payment provided in paragraph 4(a) pursuant to this paragraph 4(i).
      Notwithstanding the first sentence of this paragraph 4(i) to the contrary,
      the Executive’s spouse, as of May 19, 2009, shall be entitled to medical
      insurance (at no cost to the Executive or such spouse until such time as
      Executive and such spouse are no longer legally married) for so long as
      the Executive remains employed by the Company, and such spouse shall not
      be entitled to any other Benefits.

				   
				
      The Executive and the Company further amend
      the Agreement by deleting the last sentence of Paragraph 4(i) of the
      Agreement in its entirety.

				    
	      	V.	      	
      The Executive and the Company
      further amend the Agreement by adding the following new Paragraph
      4(k):

				  
					
      4(k). Restricted Stock Award.
      The Executive shall receive a restricted stock
      award with a face value of $4,400,000. The number of shares awarded will
      be determined based on the Company’s stock price at the close of the
      market on March 18, 2009 as reported on Nasdaq. Except as otherwise
      provided by this Agreement, the shares will “cliff” vest in full (100%) on
      March 18, 2012 (thirty-six months from grant date), provided the Executive
      continues service with the Company through such date, provided however,
      that restricted stock that would otherwise vest on a date on which a sale
      of such shares by the Executive would violate the Insider Trading Policy
      shall vest as set forth in the Restricted Stock Agreement. The terms and
      conditions of this restricted stock award will be set forth in the Notice
      of Grant of Award, the Ross Stores, Inc. Restricted Stock Agreement (the
      “Restricted Stock Agreement”), and the Ross Stores, Inc. 2008 Equity
      Incentive Plan. The term “restricted stock” in this Agreement shall mean
      shares of stock granted under the terms of a Restricted Stock
      Agreement.

					  
		VI.		
      The Executive and the Company further amend
      the Agreement by adding the following new Paragraph 4(l):

				  
					
      4(l). Performance Share Award.
      The Executive shall receive for the fiscal year
      ending on January 30, 2010 a target number of Performance Shares equal to
      $2,750,000 divided by the closing market price on March 18, 2009 as
      reported on Nasdaq. The Performance Shares shall represent the right to
      receive Common Shares of the Company’s stock determined by the extent to
      which the target level of adjusted pretax profit for the fiscal year
      ending January 30, 2010, approved by the Compensation Committee of the
      Ross Stores, Inc. Board of Directors, has been attained and certified by
      the Compensation Committee.

				      	
      Except as otherwise provided in the
      Performance Share Agreement, the Company shall issue, based on performance
      attained, Unvested Common Shares of the Company’s stock in settlement of
      Performance Shares on the Settlement Date of March 31, 2010. Except as
      otherwise provided in the Performance Share Agreement, Unvested Common
      Shares issued in settlement of the Performance Shares shall vest and
      become Vested Common Shares on January 28, 2012, provided the Executive
      continues service with the Company through such date, provided however, that Unvested
      Common Shares that would otherwise become Vested Common Shares on a date
      on which a sale of such shares by the Executive would violate the Insider
      Trading Policy shall become Vested Common Shares as set forth in the
      Performance Share Agreement. The terms and conditions of the Performance
      Shares shall be set forth in the Notice of Grant of Performance Shares,
      the Ross Stores, Inc. Performance Share Agreement (the “Performance Share
      Agreement”), and the Ross Stores, Inc. 2008 Equity Incentive Plan.
      Capitalized terms in this paragraph 4(j) shall have the same meanings
      assigned to such terms in the Performance Share
Agreement.

				   
	      	VII.	      	
      The Executive and the Company
      further amend the Agreement by deleting Paragraph 9(a)(ii) of the
      Agreement in its entirety and replacing it with the following new
      Paragraph 9(a)(ii):

				  
					
      (ii). Bonus. The Company shall continue
      to pay to the Executive an annual bonus through the remainder of the term
      of the Agreement, as defined in paragraph 1 (including any extension
      pursuant to paragraphs 1 or 4(b)). The amount of each annual bonus payable
      pursuant to this paragraph 9(a)(ii) shall be equal to the annual bonus
      that the Executive would have earned had no such termination under
      paragraphs 7(b), 7(d) or 7(e) occurred, contingent on the relevant annual
      bonus plan performance goals for the respective year having been obtained.
      However, in no case shall any such post-termination annual bonus exceed
      100% of the Executive’s target bonus for the fiscal year of the Company in
      which the Executive’s termination of employment occurs. Such bonuses shall
      not be paid until due under the applicable Company bonus
      plan.

					  
		VIII.		
      The Executive and the Company further amend
      the Agreement by deleting Paragraph 9(e) of the Agreement in its entirety
      and replacing it with the following new Paragraph 9(e) of the
      Agreement:

				  
					
      (e) Non-Renewal. If the Agreement
      expires as set forth in paragraph 7(h) [Non-Renewal], the Company shall
      have no further obligations to the Executive except as set forth in
      paragraphs 7(h) and 13 and except that the Executive shall immediately
      become fully vested in any restricted stock granted to the Executive by
      the Company under the Ross Stores, Inc. Restricted Stock Agreement which
      has not become vested as of such expiration date. The Company shall also
      pay the Executive an annual bonus for the Company’s fiscal year ending
      January 28, 2012. Such bonus shall not be paid until due under the
      applicable Company bonus plan.

					 
		IX.		
      The Executive and the Company further amend
      the Agreement by adding the following new Paragraph 9(f):

				 
					
      (f) Dividend Repayment
      Right. If the Executive terminates pursuant to
      paragraphs 7(a)[Death], 7(b) [Disability], 7(d)[Without Cause], or
      7(e)[Termination by Executive for Good Reason], the Company shall waive
      any reacquisition or repayment rights for dividends paid on shares of
      restricted stock (granted under the terms and conditions of the Ross
      Stores Inc. Restricted Stock Agreement) or Unvested Common Shares (granted
      under the terms and conditions of the Ross Stores Inc. Performance Share
      Agreement) prior to Executive’s termination of
      employment.

	      	X.	      	The Executive and
      the Company further amend the Agreement by adding the following new
      Paragraph 9(g):
				  
				      	
      (g) Release of Claims.
      Notwithstanding the provisions of this paragraph 9, the Executive shall be
      entitled to such payments in this paragraph 9; provided that within sixty
      (60) days following the Executive’s termination of employment the
      Executive executes a general release of claims against the Company and its
      subsidiaries, affiliates, stockholders, directors, officers, employees,
      agents, successors and assigns in the current form approved by the Company
      and attached as Exhibit A (subject to any amendments required by law or
      regulation) (the “Release”) and the period for revocation, if any, of such Release
      has expired without the Release having been
  revoked.

					  
		X.		
      The Executive and the
      Company further amend the Agreement by adding the following new Paragraph
      9(h):

				  
					
      (h) Timing of Payments:
      Subject to paragraph 22, any cash payments to which the Executive is
      entitled under paragraphs 9(a), 9(c) and 9(e) shall commence within 30
      days after the Executive executes the Release pursuant to paragraph 9(g);
      provided, however, that any amount otherwise payable prior to the
      Executive’s execution of the Release pursuant to paragraph 9(g) shall be
      paid to the Executive not later than ten days following the execution of
      the Release pursuant to paragraph 9(g).

					 
		XI.		
      The Executive and the
      Company further amend the Agreement by deleting Paragraph 22(d) of the
      Agreement in its entirety and replacing it with the following new
      Paragraph 22(d):

				 
					
      (d) Matching Contribution: In
      the event that Matching Contributions are provided pursuant to paragraph
      4(i), such amount shall be paid to the Executive annually no later than
      December 31 of the respective year in which a matching contribution would
      have been made if the Executive was employed by the
      Company.

Except for the amendments, as set forth
above, the Agreement and all of its terms remain in force and in effect.

	ROSS STORES,
      INC.  	 	EXECUTIVE  
	  		
	/s/  		/s/  
	Norman Ferber 
    		Michael Balmuth 
    
	 		
	June 9, 2009  		June 9, 2009  
	Date  		DateEX-10.1

FX REAL ESTATE AND ENTERTAINMENT INC.

SUBSCRIPTION AGREEMENT

	 	 	 
	SUBSCRIBER:

SECURITIES SUBSCRIBED FOR:

AGGREGATE PURCHASE PRICE:

	 	[      ]

[      ] units consisting of [      ] shares of

Common Stock and Common Stock Purchase Warrants to

purchase up to [      ] shares of Common Stock

$[      ]

This SUBSCRIPTION AGREEMENT (this “Agreement”), dated as of August      , 2009, is made
by and between FX Real Estate and Entertainment Inc., a Delaware corporation (the
"Company”), and the undersigned subscriber (the “Subscriber”).

1. Subscription. The Subscriber hereby irrevocably subscribes for and agrees to
purchase the securities of the Company specified above (the “Securities”) for the aggregate
purchase price specified above (the “Aggregate Purchase Price”). The Subscriber has
simultaneously herewith made full payment of the Aggregate Purchase Price in immediately available
funds by wire transfer in accordance with instructions from the Company. Upon the Company’s receipt
of the entire Aggregate Purchase Price, the Company shall (a) cause The Bank of New York Mellon
Corporation, as its transfer agent (the “Transfer Agent”), to issue to the Subscriber a
statement evidencing ownership of the Shares (as defined in Section 2 below), free and clear of all
restrictions (except as expressly provided in Section 6 below), and registration thereof in the
Subscriber’s name on the Transfer Agent’s records in book-entry form under The Direct Registration
System and (b) issue the Warrants (as defined in Section 2 below) in the name of the Subscriber.

2. Definitions. In addition to the terms defined elsewhere in this Agreement, the
following terms have the meanings indicated:

“Shares” means the shares of common stock, $0.01 par value, of the Company
comprising a portion of the Securities being subscribed for and purchased by the Subscriber
hereunder.

“Warrants” means the Common Stock Purchase Warrant of the Company to purchase Warrant
Shares at an exercise price of $0.07 per share, in substantially the form attached hereto as
Exhibit A, and the Common Stock Purchase Warrant to purchase Warrant Shares at an exercise
price of $0.08 per share, in substantially the form attached hereto as Exhibit B,
comprising a portion of the Securities being subscribed for and purchased by the Subscriber
hereunder.

“Warrant Shares” means the shares of common stock, $0.01 par value, of the Company
issuable upon exercise of the Warrants.

3. Offering Materials. The Subscriber represents and warrants that it is in
receipt of and that it has carefully read the following periodic reports filed by the Company with
the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended,
(collectively, the “Offering Materials”): (a) the Company’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2008 (the “Form 10-K”); (b) the Company’s Amendment No.
1 to the Form 10-K; (c) the Company’s Quarterly Reports on Form 10-Q for the quarterly periods
ended March 31, 2009 and June 30, 2009; and (d) the Company’s Current Reports on Form 8-K dated
June 5, 2009, June 19, 2009, July 13, 2009 and August 4, 2009.

4. Representations and Warranties of the Company. The Company represents and warrants
that: (a) it is a corporation duly organized under the laws of the State of Delaware; (b) it, by
appropriate corporate action, has, or will have prior to the issuance of the Securities, duly
authorized the execution, delivery and performance of this Agreement and all of the transactions
contemplated hereby, including the issuance and delivery of the Securities; (c) neither the Shares
nor Warrant Shares are subject to preemptive or other rights of any stockholders of the Company and
when issued in accordance with the terms of this Agreement and the Warrants, the Shares and Warrant
Shares, as applicable, will be validly issued, fully paid and non-assessable; and (d) the
Company’s performance of this Agreement and the Warrants and compliance with the provisions hereof
and thereof will not violate any provision of any applicable law or of its charter and bylaws (as
currently in effect), and will not conflict with or result in any breach of any of the terms,
conditions or provisions of, or constitute a default under, or result in the creation or imposition
of any lien, charge or encumbrance upon, any of its material properties or assets, pursuant to the
terms of any material indenture, mortgage or other agreement or instrument binding upon it or any
of its subsidiaries, other than such breaches, defaults or liens which would not have a material
adverse effect on the Company and its subsidiaries taken as a whole.

5. Representations and Warranties of Subscriber. The Subscriber hereby represents and
warrants that: (a) it has the full legal right and power and all authority and approval required to
execute, deliver and perform its obligations under this Agreement; (b) it is acquiring the
Securities solely for its own account, for present investment and not with a view toward resale or
other distribution within the meaning of the Securities Act of 1933, as amended (the
“Securities Act”), in violation of the Securities Act; provided, however,
that by making the representations herein, Subscriber does not agree to hold any of the Securities
for any minimum or other specific term and Subscriber reserves the right to dispose of the
Securities at any time in accordance with or pursuant to a registration statement or an exemption
under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of
Regulation D under the Securities Act; (d) it, either alone or together its representatives, has
such knowledge, sophistication and experience in business, financial and investment matters that it
is capable of evaluating the merits and risks of an investment in the Securities, and has so
evaluated the merits and risk of such investment; (e) it understands that it must bear the economic
risk of this investment in the Securities indefinitely, and is able to bear such risk and is able
to afford a complete loss of such investment; (f) it has received and reviewed the Offering
Materials and has been afforded the opportunity to ask questions of, and receive answers from
representatives of the Company concerning the terms and conditions of the offering of the
Securities and the merits and risks of investing in the Securities and to obtain any additional
information necessary to verify the accuracy of any information provided by the Company, and in
general had access to all information about the Company it deemed necessary to make an informed
investment decision with respect to the purchase of the Securities. The Subscriber further
represents and warrants that it has consulted with such legal, tax and investment advisors as it,
in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the
Securities.

6. Restrictions on Transfer. Subscriber acknowledges that (a) the offer and sale of
the Securities has not been registered under the Securities Act, or applicable state securities
laws, and the Securities may not be sold, transferred, pledged, or otherwise disposed of unless
subsequently so registered or unless the Subscriber delivers to the Company an opinion of counsel
reasonably satisfactory to the Company that such sale, transfer, pledge or disposition is exempt
from the registration requirements of the Securities Act; (b) the Company is under no obligation to
register or facilitate any resale of the Shares, the Warrants or the Warrant Shares; and (c) the
Shares and, upon issuance, the Warrant Shares registered in the name of the Subscriber 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.

The Subscriber further agrees that certificates or other instruments evidencing the Warrants
shall bear the foregoing notation as a legend thereon.

7. Miscellaneous.

7.1. Any and all notices or other communications or deliveries required or permitted to be
provided hereunder shall be in writing and shall be deemed to be sufficiently given or served for
all purposes by being sent as registered or certified mail, return receipt requested, postage
prepaid or overnight courier or facsimile, in the case of the Company, addressed to it at FX Real
Estate and Entertainment Inc., 650 Madison Avenue, New York, New York 10022, Attention: General
Counsel, Facsimile: (212) 980-4455, Telephone: (212) 838-3100; and in the case of the Subscriber to
the address and other contact information for correspondence set forth on the signature page
hereof.

7.2. No provision of this Agreement may be waived or amended except in a written instrument
signed, in the case of an amendment, by the Company and the Subscriber or, in the case of a waiver,
by the party against whom enforcement of any such waiver is sought. No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of either party to
exercise any right hereunder in any manner impair the exercise of any such right.

7.3. This Agreement shall be governed and construed in all respects in accordance with the
laws of the State of New York without giving effect to conflicts of laws principles thereof. Each
party consents to the personal jurisdiction in that State and voluntarily submits to the exclusive
jurisdiction of the courts of that State located in New York City in any action or proceeding with
respect to this Agreement, including the federal courts located in New York City. The headings used
in this Agreement are for convenience of reference only and do not define, limit or effect the
provisions hereof. The word “it” when used in this Agreement to refer to the Subscriber shall mean
the Subscriber whether a natural person or an entity.

7.4. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. If any provision of this Agreement is invalid or
unenforceable under any applicable law, then such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed to be modified to conform with such law.
Any provision hereof that may prove invalid or unenforceable under any applicable law shall not
affect the validity or enforceability of any other provision hereof.

7.5. This Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party, it being understood
that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or email attachment, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or email-attached signature page were an original thereof.

7.6. This Agreement, together with Exhibits A and B hereto, constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and supersedes any prior
agreements and understandings, oral or written, between the parties regarding the subject matter
hereof. The representations and warranties, agreements and covenants contained herein shall
survive consummation of the sale of the Securities hereunder.

7.7 This Agreement is intended for the benefit of the parties hereto and their respective
successors and permitted assigns and is not for the benefit of, nor may any provision hereof be
enforced by, any other person or entity. The Subscriber may not assign in whole or in part this
Agreement without the prior written consent of the Company.

[INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the Subscriber has executed this Subscription Agreement as of the date
first set forth above.

SUBSCRIBER:

Name of Subscriber

[Please Print]

By:

Authorized Signatory

Name and Title of Authorized Signatory

[Please Print]

Address; phone and facsimile numbers:

Tax Identification Number:

The Company hereby acknowledges, agrees to
and accepts the terms of the foregoing
Subscription Agreement as of the date first
set forth above:

FX Real Estate and Entertainment Inc.

By:

Name:

Title:

EXHIBIT A

FORM OF COMMON STOCK PURCHASE WARRANT (@ $0.07 PER SHARE)

EXHIBIT B

FORM OF COMMON STOCK PURCHASE WARRANT (@ $0.08 PER SHARE)

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