Document:

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                                  EXHIBIT 10.69

  Lease Agreement dated as of September 24, 1999 by and between West Hollywood
      Property Limited Partnership and 2400 Willow Lane Associates Limited
    Partnership (as Landlord) and The Spectrum Club Company, Inc. (as Tenant)

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                                 LEASE AGREEMENT

                            AS OF SEPTEMBER 24, 1999

                                    LANDLORD:

                   WEST HOLLYWOOD PROPERTY LIMITED PARTNERSHIP

                                       AND

                 2400 WILLOW LANE ASSOCIATES LIMITED PARTNERSHIP

                                     TENANT:

                         THE SPECTRUM CLUB COMPANY, INC.

                               PREMISES LOCATION:

                   2400 WILLOW LANE, THOUSAND OAKS, CALIFORNIA

                          ---------------------------

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                        LAND AND BUILDING LEASE AGREEMENT

        This Land and Building Lease Agreement (this "Lease") is dated as of
September 24, 1999 (the "Effective Date" or "Commencement Date"), between The
Spectrum Club Company, Inc., a California corporation ("Tenant"), and West
Hollywood Property Limited Partnership and 2400 Willow Lane Associates Limited
Partnership (collectively, "Landlord"), with reference to the recitals set forth
below.

                                    RECITALS

        A. Landlord is the owner of that certain real property (the "Premises"),
which legal description is attached hereto and incorporated herein as Exhibit
"A", and is commonly known as:

                          2400 Willow Lane
                          Thousand Oaks, California 91361

        B. Landlord desires to lease the Premises to Tenant, and Tenant desires
to lease the Premises from Landlord, pursuant to the provisions of this Lease.

1   DEFINITIONS. The following terms, when used in this Lease, shall have the
meaning set forth in this Section.

1.1 LEASE YEAR. The term "Lease Year" shall mean the first twelve (12) full
calendar months after the Effective Date and each subsequent twelve (12) month
period thereafter during the term and any extensions.

1.2 HAZARDOUS MATERIAL. The term "Hazardous Material" means any substance,
material, or waste which is toxic, ignitable, reactive, or corrosive and which
is or becomes regulated by any local or state governmental authority or the
United States Government. The term "Hazardous Material" includes, without
limitation, any material or substance which is (i) defined as a "hazardous
waste," "extremely hazardous waste," "restricted hazardous waste," "hazardous
substance," or "hazardous material," by any local or state law, (ii) oil and
petroleum products and their byproducts, (iii) asbestos, or asbestos-containing
materials, (iv) designated as a "hazardous substance" pursuant to the Federal
Water Pollution Control Act, (v) defined as a "hazardous waste" pursuant to the
Federal Resource Conservation and Recovery Act, or (vi) defined as a "hazardous
substance" pursuant to the Comprehensive Environmental Response, Compensation
and Liability Act.

1.3 ENVIRONMENTAL LAW. The term "Environmental Law" shall mean, any law,
statute, regulation, order, or rule now or hereafter promulgated by any
governmental entity, whether local, state, or federal, relating to air
pollution, water pollution, noise control, and/or transporting, storing,
handling, discharge of or disposal of Hazardous Material, including, without
limitation, the following: the Clean Air Act; the Resource Conservation and
Recovery Act, as amended by the Hazardous Waste and Solid Waste Amendments of
1984; the Comprehensive Environmental Response, Compensation and Liability Act,
as amended by the Superfund Amendments and Reauthorization Act of 1986; the
Toxic Substances Control Act; the Federal Insecticide, Fungicide and Rodenticide
Act, as amended; the Safe Drinking Water Act; OSHA; the Hazardous Liquid
Pipeline Safety Act; the Hazardous Materials Transportation Act; and the
National Environmental Policy Act, as the same may be amended from time to time.

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                                  2. PREMISES.

2.1 PREMISES. Landlord leases to Tenant, and Tenant leases from Landlord, the
Premises on the terms and conditions set forth in this Lease. The Premises
consist of the real property described in Exhibit "A" together with all
improvements and fixtures on or attached to said real property, except for those
improvements and/or fixtures set forth on Schedule 2.1. More particularly, the
Premises consist of a building (the "Building"), a portion of which consists of
a health and fitness club on the ground floor (the "Club") the construction of
which has not yet been completed and another portion of which consists of a
ground floor office lobby and second floor office space (the "Office Space") for
which the tenant improvements have not yet been built out. The Premises further
include associated parking and common areas.

2.2 CONDITION OF PREMISES. Tenant represents, warrants and covenants to Landlord
that Tenant has conducted Tenant's own investigation of the Premises, the
physical condition thereof and all other matters relating thereto, including
accessibility and location of utilities, improvements, existence of hazardous
materials, taxes, operating expense data, insurance costs, zoning, covenants,
conditions and restrictions and all other matters which in Tenant's judgment
might bear upon the value and suitability of the Premises for Tenant's purposes
or Tenant's willingness to enter into this Lease. Tenant recognizes that
Landlord would not lease the Premises except on an "AS IS" basis and
acknowledges that Landlord has made no representations or warranties, express or
implied, of any kind in connection with this Lease. Landlord shall deliver the
Premises to Tenant in the same condition as the Premises now are, reasonable
wear and tear excepted. Tenant further recognizes and agrees that Landlord shall
not be required to perform any work of construction, improvement or alteration
of or to the Premises in connection with Tenant's initial occupancy of the
Premises.

                                    3. TERM.

3.1 INITIAL TERM. The term of this Lease ("Lease Term") shall be for a period of
eighteen (18) years ("Primary Term") commencing upon the Effective Date plus the
remainder of any partial calendar month in which the Primary Term commences; it
being agreed that any such partial calendar month shall be deemed included at
the very beginning of the first Lease Year of the Primary Term. Concurrently
with the Effective Date, the Memorandum of Lease, a copy of which is attached
hereto and incorporated herein as Exhibit "B," shall be recorded; provided,
however, that, at the expiration or earlier termination of this Lease, Tenant
shall execute a disclaimer or quitclaim in a form acceptable to Landlord
evidencing such expiration or earlier termination and that Tenant no longer has
any right, title or interest in or to the Premises. The expiration date of the
term shall be the last day of the Primary Term, unless extended as set forth in
Section 3.2. References to the "term of the Lease" shall include extensions, if
any. Except as otherwise expressly stated, the terms and conditions of this
Lease shall remain in effect during any extension, renewal, or holdover of the
Primary Term.

3.2 OPTIONS TO EXTEND. Landlord hereby grants to Tenant two (2) consecutive
options (collectively, the "Extension Options" and, individually, an "Extension
Option") to extend the Lease Term each for a period of five (5) years
(collectively, the "Extension Terms" and individually an "Extension Term"), the
first Extension Term commencing upon the expiration of the Primary Term, and the
second Extension Term commencing upon the expiration of the first Extension
Term, upon each and all of the following terms and conditions:

        3.2 (1) Tenant must give to Landlord, and Landlord must have received,
written notice of the exercise of each of the first and second Extension Options
no earlier than three hundred sixty (360) days and no later than two hundred
seventy (270) days prior to the end of the Primary Term and the first Extension
Term, respectively, time being of the essence. If timely notification of the
exercise of an Extension Option is not so given and received, then such
Extension Option and any succeeding Extension Option shall automatically expire
and there shall be no further right to extend the Lease Term.

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        3.2 (2) All of the terms and conditions of this Lease, except for the
Extension Options, shall apply during the Extension Terms.

        3.2 (3) The provisions of Section 3.3 are conditions of the Extension
Options.

        3.3 CONDITIONS TO EXTENSION OPTIONS.

                3.3.1 The Extension Options are not assignable separate and
apart from this Lease, and they may not be separated from this Lease in any
manner, either by reservation or otherwise.

                3.3.2 Tenant shall have no right to exercise any of the
Extension Options (i) during the time commencing from the date Landlord gives to
Tenant a notice of default and continuing until the non-compliance alleged in
said notice of default is cured (but only if such default is susceptible to
being cured and such cure is accomplished prior to the expiration of the
applicable cure period, if any), or (ii) during the period of time commencing on
the day after a monetary obligation to Landlord is due from Tenant and remains
unpaid under the Lease (without any necessity for notice thereof to Tenant) and
continuing until the obligation is paid, or (iii) if Tenant has committed any
non-curable breach of this Lease or is otherwise in default of this Lease, or
(iv) if this Lease has been terminated.

                3.3.3 The period of time within which the Extension Options may
be exercised shall not be extended or enlarged by reason of Tenant's inability
to exercise such right because of the provisions of the foregoing Section 3.3.2,
provided, however, that if Landlord gives to Tenant a notice of default and it
is determined by a court of competent jurisdiction that Tenant was not actually
in default under this Lease, Tenant shall be given an additional thirty (30)
days from the date of such judicial determination in which to exercise the
applicable Extension Option.

                3.3.4 At Landlord's sole election, an Extension Option shall
terminate and be of no further force or effect, notwithstanding Tenant's due and
timely exercise thereof, if, after such exercise but prior to the commencement
of the applicable Extension Term (i) Tenant is in default of any of the terms,
covenants or conditions of this Lease beyond the applicable cure period, if any,
to cure such default, or (ii) this Lease has been terminated.

As used in Sections 3.2 and 3.3, "default of this Lease" shall mean an Event of
Default (as defined in Section 17.1) and any act or omission which, with the
passage of time and/or the giving of notice by Landlord, would constitute an
Event of Default under this Lease.

                              4. BASE MONTHLY RENT.

4.1 NET-NET-NET LEASE. This is a net-net-net lease. All costs and expenses
arising out of the ownership, use, occupancy, maintenance and repair of the
Premises, including, but not limited to, taxes and insurance, as set forth
below, are to be paid by Tenant and without regard to whether such costs and
expenses arose, occurred or related, in whole or in part, to any period of time
before or after the Commencement Date; it being agreed that Landlord is to bear
no such costs or expenses whatsoever.

4.2 BASE MONTHLY RENT. For the first five (5) Lease Years, Tenant shall pay to
Landlord as base monthly rent (the "Base Monthly Rent") the sum of One Hundred
Sixteen Thousand Six Hundred Sixty Seven Dollars ($116,667.00). Base Monthly
Rent shall be payable by Tenant to Landlord in advance in equal monthly
installments on the first (1st) day of each calendar month during the Primary
Term and each Extension Term for which an option has been exercised, without
prior notice, invoice, demand, deduction, or offset whatsoever. The payment of
Base Monthly Rent shall commence on the Effective Date; provided, however, if
the Effective Date is on a day other than the first day of a calendar month, the
Base Monthly Rent payable by Tenant to Landlord shall be prorated for the first
fractional month of the

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Lease Term and paid on the Effective Date. Landlord shall have the right to
accept all rent and other payments, whether full or partial, and to negotiate
checks and payments thereof without any waiver of rights, irrespective of any
conditions to the contrary sought to be imposed by Tenant. All sums due
Landlord, from time to time, under this Lease shall be deemed to constitute
rent.

        4.2.1 HOLDBACK. Landlord has deposited or caused to be deposited, or
will deposit or cause to be deposited, the sum of Two Million Dollars
($2,000,000) (the "Holdback") (a) with the lender who has made the acquisition
loan to Landlord that is secured by the Premises or (b) in an escrow established
with such lender's consent and approval. The Holdback shall be disbursed to
Tenant, subject to the requirements of such lender, upon completion of the work
that is required to be performed by Tenant pursuant to Paragraph 12.3 hereof.
Tenant shall be entitled to receive monthly, so long as Tenant is not in default
under the Lease, interest in an amount equal to that earned by Landlord on the
Holdback. Landlord and Tenant contemplate that monthly interest will be payable
on the Holdback.

        4.3 MONTHLY RENTAL INCREASE. The Base Monthly Rent shall increase
commencing on the first day of the sixth, eleventh and sixteenth Lease Year, and
if Tenant exercises its options to extend the term of this Lease, on the first
day of the twenty-first and twenty-sixth Lease Years (each such day, an
"Adjustment Date"), as follows:

        4.3.1 On the first Adjustment Date, the Base Monthly Rent shall be
increased to be the lesser of (a) $128,811 or (b) the amount obtained by
multiplying the Base Monthly Rent payable during the prior Lease Year by a
fraction whose numerator is twice the Adjustment Month Index and whose
denominator is the Base Month Index;

        4.3.2 On the second Adjustment Date, the Base Monthly Rent shall be
increased to be the lesser of (a) $135,629 or (b) the amount obtained by
multiplying the Base Monthly Rent payable during the prior Lease Year by a
fraction whose numerator is twice the Adjustment Month Index and whose
denominator is the Base Month Index;

        4.3.3 On the third Adjustment Date, the Base Monthly Rent shall be
increased to be the lesser of (a) $150,602 or (b) the amount obtained by
multiplying the Base Monthly Rent payable during the prior Lease Year by a
fraction whose numerator is twice the Adjustment Month Index and whose
denominator is the Base Month Index;

        4.3.4 If Tenant exercises the First Extension Option, on the fourth
Adjustment Date, the Base Monthly Rent shall be increased to $167,229; and

        4.3.5 If Tenant exercises the Second Extension Option , on the fifth
Adjustment Date, the Base Monthly Rent shall be increased to $185,691;

provided, however, that if the Base Monthly Rent shall be increased, on any
Adjustment Date, pursuant to clause (b) of the applicable subsection of this
Section 4.3 rather than by clause (a) thereof, then in such case the Base
Monthly Rent shall be further increased, but not decreased, on each anniversary
of such Adjustment Date until, but not including, the next occurring Adjustment
Date by multiplying the Monthly Base Rent in effect immediately prior to such
anniversary date by a fraction whose numerator is the Index for that month which
is three (3) months prior to such anniversary date and whose denominator is the
Index for that month which is three (3) months prior to such Adjustment Date.

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4.4 DEFINITIONS. As used in Section 4.3:

        4.4.1 "Adjustment Month Index" means the Index for that month which is
three (3) months prior to the Adjustment Date.

        4.4.2 "Index" means CONSUMER PRICE INDEX ALL URBAN CONSUMERS (CPI-U;
U.S. City average; All Items; 1982-84 = 100) published by the United States
Department of Labor, Bureau of Labor Statistics. If the base of the Index
changes from the 1982-84 base (100), the Index shall, thereafter, be adjusted to
the 1982-84 base 100 before the computation indicated above is made. If the
Index cannot be converted to the 1982-84 base or if the Index is otherwise
revised, the adjustment under this section shall be made with the use of such
conversion factor, formula or table for converting the Index as may be published
by the Bureau of Labor Statistics. If the Index is at any time hereafter no
longer published, a comparable index generally accepted and employed by the real
estate profession, as reasonably determined by Landlord, shall be used.

        4.4.3 "Base Month Index" means the Index for that month which is five
(5) years and three (3) months prior to the Adjustment Date.

        4.4.4 If the Adjustment Month Index is unavailable on the Adjustment
Date, Landlord may calculate the adjustment under this Section based on the
Index for a month preceding the Adjustment Date. When the Adjustment Month Index
becomes available, Landlord shall provide Tenant with the corrected computations
for adjustments under Section 4.3.1, and Tenant shall pay Landlord any
deficiency for any intervening months within ten (10) days of receipt of the
corrected computations. If the corrected computations show instead that Tenant
has overpaid Landlord, then Tenant shall be entitled to offset the amount of
such overpayment, less any sums due Landlord by Tenant, against Base Monthly
Rent, as the same shall come due.

5. ADDITIONAL RENT. THIS SECTION WAS INTENTIONALLY LEFT BLANK.

6. SUBSTITUTE RENT AND INCREASES. THIS SECTION WAS INTENTIONALLY LEFT BLANK.

7. SECURITY DEPOSIT. Tenant shall deposit with Landlord upon execution hereof
One Hundred Ten Thousand Dollars ($110,000), as security for Tenant's faithful
performance of Tenant's obligations hereunder. If Tenant fails to pay rent or
other charges due hereunder, or otherwise defaults with respect to any provision
of this Lease, then Landlord may use, apply or retain all or any portion of said
security deposit for the payment of any rent or other charge in default or for
the payment of any other sum to which Landlord may become obligated, or be
permitted hereunder to pay, by reason of Tenant's default, or to compensate
Landlord for any loss or damage which Landlord may suffer thereby. If Landlord
so uses or applies all or any portion of said deposit, then Tenant shall, within
ten (10) days after written demand therefor, deposit cash with Landlord in an
amount sufficient to restore said deposit to the full amount hereinabove stated,
and Tenant's failure to do so shall be a material breach of this Lease. Tenant
shall deposit with Landlord, from time to time, additional security deposit so
that the amount of security deposit held by Landlord shall at all times bear the
same proportion to the current Monthly Base Rent as the original security
deposit bears to the original Monthly Base Rent set forth in Paragraph 4.2.
Landlord shall not be required to keep said deposit separate from its general
accounts. If Tenant performs all of Tenant's obligations hereunder, then said
deposit, or so much thereof as has not theretofore been applied by Landlord
shall be returned to Tenant (or, at Landlord's option, to the last assignee, if
any, of Tenant's interest hereunder), without payment of interest or other
increment for its use, at the expiration of the term

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hereof, but after Tenant has vacated the Premises. No trust relationship is
created herein between Landlord and Tenant with respect to said security
deposit. Notwithstanding the foregoing, Landlord hereby waives Tenant's
obligation to provide such security deposit unless and until the occurrence of
an event pursuant to Section 16.1 which gives rise to the determination of a
Fair Market Rental Rate (as defined in said Section).

8. USE OF THE PREMISES. Tenant shall use (i) the Club portion of the Premises
only for a first class health and fitness club and other ancillary uses typical
to a Spectrum Club, (ii) the Office Space portion of the Premises, once the Deck
is completed, only for general office use and (iii) the parking and common areas
of the Premises only for parking and other common area uses and, in each such
instance, for no other uses without the prior written consent of Landlord, which
Landlord may withhold in its sole discretion. In no event shall all or any part
of the Premises be used for any of the uses set forth on Exhibit "C" attached
hereto and incorporated herein by this reference (collectively, "Prohibited
Uses"). Once Tenant has completed the applicable construction obligation
pursuant to Section 12.3, Tenant shall continuously operate the Club portion of
the Premises as a health and fitness club and the Office Space portion of the
Premises for general office use by office subtenants. Tenant has satisfied
itself, and represents to Landlord, that use of the Premises for a health and
fitness club and general office use, once the Deck is completed, is lawful and
conforms to all applicable zoning and other use restrictions and regulations
applicable to the Premises. Tenant shall, at Tenant's expense, comply promptly
with all applicable statutes, ordinances, rules, regulations, orders, covenants
and restrictions of record, and requirements in effect during the term or any
part of the term hereof, regulating the use by Tenant of the Premises,
including, without limitation, the obligation at Tenant's cost, to alter,
maintain, or restore the Premises in compliance and conformity with all laws
relating to the condition, use, or occupancy of the Premises during the term of
this Lease (including any and all requirements as set forth in the Americans
with Disabilities Act). Tenant shall not perform any acts or carry on any
practices which may injure the Premises.

9. PROPERTY TAXES, ASSESSMENTS AND UTILITIES.

9.1 TENANT'S REQUIRED PAYMENTS.

        9.1.1 Except in the event that a lender of Landlord shall require, from
time to time, the establishment of an impound account for the payment of taxes
or that such taxes be paid earlier than set forth below, in which case Tenant
shall, as applicable, make such deposits into such account or pay such taxes on
or before such earlier date, in each such instance, as may be required by such
lender, Tenant shall pay 30 days before delinquency, and promptly provide to
Landlord and to any such lender of which Tenant has notice written proof of
payment for, all taxes, assessments, license fees, costs incurred pursuant to
covenants and restrictions affecting the Premises, and other charges ("taxes")
levied or assessed against all merchandise, personal property, real property,
buildings and improvements, and any other obligations which are or may become a
lien or levied against the Premises. If any such taxes paid by Tenant shall
cover any period of time after the expiration of the term hereof, then Tenant's
share of such taxes shall be equitably prorated to cover only the period of time
within the tax fiscal year during which this Lease shall be in effect, and
Landlord shall reimburse Tenant to the extent required; it being agreed that
there shall be no such proration, and Tenant shall be solely responsible for,
the entire amount of any such taxes that cover, whether in whole or in part, any
period of time prior to the term hereof. If Tenant shall fail to pay any such
taxes, then Landlord shall have the right to (i) pay the same, in which case
Tenant shall repay such amount to Landlord with Tenant's next rent installment
together with interest at the lesser of eighteen percent (18%) per annum and the
maximum rate then allowable by law and (ii) thereafter require Tenant to impound
with Landlord, or for the benefit of Landlord with any lender of Landlord, such
taxes pursuant to Section 17.7.

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        9.1.2 If at any time during the term, the state in which the Premises
are located or any political subdivision of the state, including any county,
city, county and city, public corporation, district, or any other political
entity or public corporation of that state, levies or assesses against Landlord
a tax, fee, or excise on (i) rents, including, if applicable, property taxes,
insurance, maintenance, and other costs incurred by Tenant by which Landlord may
benefit; (ii) on the square footage of the Premises; (iii) on the act of
entering into this Lease; or (iv) on the occupancy of Tenant, or levies or
assesses against Landlord any other tax, fee, or excise, however described,
including, without limitations, a so-called value added tax, as a direct
substitution in whole or in part for, or in addition to, any real property
taxes, then Tenant shall reimburse to Landlord or directly pay before
delinquency that tax, fee, or excise. It is the intention of Tenant and Landlord
that all new and increased assessments, taxes, fees, levies, and charges, and
all similar assessments, taxes, fees, levies, and charges be included within the
definition of taxes for the purpose of this Lease. If at any time during the
term of this Lease the laws concerning the methods of real property taxation
prevailing at the commencement of the term of this Lease are changed so that a
tax or excise on rents or any other tax, however described, is levied or
assessed against Landlord as a substitution in whole or in part for any real
property taxes, then taxes shall include, but not be limited to, any such
assessment, tax, fee, levy, or charge allocable to or measured by the area of
the Premises or the rent payable hereunder, including, without limitation, any
gross income tax with respect to the receipt of such rent, or upon or with
respect to the possession, leasing, operating, management, maintenance,
alteration, repair, use, or occupancy by Tenant of the Premises, or any portion
thereof. Accordingly, the term "taxes" shall also include any tax, fee, levy,
assessment or charge (i) in substitution of, partially or totally, any tax, fee,
levy, assessment or charge hereinabove included within the definition of
"taxes," or (ii) the nature of which was hereinbefore included within the
definition of "taxes," or (iii) which is imposed for a service or right not
charged prior to July 1, 1978, or, if previously charged, has been increased
since July 1, 1978, or (iv) which is imposed as a result of a transfer, either
partial or total, of Landlord's interest in the Premises or which is added to a
tax or charge hereinbefore included within the definition of "taxes" by reason
of such transfer, or (v) which is imposed by reason of this transaction, any
modifications or changes hereto, or any transfers hereof.

9.2 PAYMENTS NOT REQUIRED BY TENANT. Subject to Section 9.1.2, Tenant shall not
be required to pay any municipal, county, state, or federal income or franchise
taxes of Landlord, or any municipal, county, state, or federal estate,
succession, inheritance, or transfer taxes of Landlord.

9.3 ASSESSMENTS. If any assessment for a capital improvement made by public or
governmental authority shall be levied or assessed against the Premises, and the
assessment is payable either in a lump sum or on an installment basis, then
Tenant shall have the right to elect the basis of payment. If Tenant shall elect
to pay the assessment on the installment basis, then Tenant shall pay only those
installments which shall become due and payable during the term of this Lease.

9.4 UTILITY PAYMENTS. Tenant shall promptly pay when due all charges for water,
gas, electricity, and all other utilities furnished to or used upon the
Premises, including all charges for installation, termination, and relocations
of such service.

9.5 PERSONAL PROPERTY TAXES. Tenant shall pay prior to delinquency all taxes
assessed against and levied upon trade fixtures, furnishings, equipment and all
other personal property of Tenant contained in the Premises or elsewhere. When
possible, Tenant shall cause said trade fixtures, furnishings, equipment and all
other personal property to be assessed and billed separately from the real
property of Landlord. If any of Tenant's said personal property shall be
assessed with Landlord's real property, Tenant shall pay Landlord the taxes
attributable to Tenant within ten (10) days after receipt of a written statement
setting forth the taxes applicable to Tenant's property.

9.6 TENANT'S RIGHT TO CONTEST UTILITY CHARGES, CONTEST TAXES AND SEEK REDUCTION
OF ASSESSED VALUATION OF THE PREMISES. Tenant, at its cost, shall have the
right, at any time, to seek a reduction in the assessed valuation of the
Premises or to contest any taxes or utility charges that are to be paid by
Tenant. Subject to the requirements of any lender of Landlord, if Tenant seeks a
reduction or contests any taxes or

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utility charges, the failure on Tenant's part to pay the taxes or utility
charges shall not constitute a default as long as Tenant complies with the
provisions of this Section. Tenant may use any means allowed by statute to
protest property tax assessments or utility charges as defined in this Section 9
as long as Tenant remains current as to all other terms and conditions of this
Lease. If, during the protest period, any lease defaults occur and the protested
taxes or assessments have not been paid, then Tenant shall furnish to Landlord a
surety bond issued by an insurance company qualified to do business in the state
where the Premises are located. The amount of bond shall equal one hundred fifty
percent (150%) of the total amount of taxes in dispute. The bond shall hold
Landlord and the Premises harmless from any damage arising out of the proceeding
or contest and shall insure the payment of any judgment that may be rendered.

9.7 LANDLORD NOT REQUIRED TO JOIN IN PROCEEDINGS OR CONTEST BROUGHT BY TENANT.
Landlord shall not be required to join in any proceeding or contest brought by
Tenant unless the provisions of the law require that the proceeding or contest
be brought by or in the name of Landlord or the owner of the Premises. In that
case, Landlord shall join in the proceeding or contest or permit it to be
brought in Landlord's name as long as Landlord is not required to bear any cost.
Tenant, on final determination of the proceeding or contest, shall immediately
pay or discharge any decision or judgment rendered, together with all costs,
charges, interest, and penalties incidental to the decision or judgment.

10. FURNITURE, FIXTURES AND EQUIPMENT.

10.1 FURNITURE, FIXTURES, AND EQUIPMENT. During the term, Tenant shall, at
Tenant's expense and from time to time, place, install, repair and maintain such
furniture, fixtures, and equipment on the Premises as may be needed and shall be
sufficient for the conduct of Tenant's business and are consistent with Tenant's
permitted use.

10.2 LANDLORD'S WAIVER. Tenant may finance equipment, trade fixtures, signs, and
furniture which may be installed in or about the Premises. Landlord shall,
within twenty (20) business days of receiving a written request, execute and
deliver to any institutional lender a Waiver and Consent Agreement approved by
Landlord and substantially in the form of Exhibit "D," attached hereto and
incorporated herein. During the term of the Lease and subject to the terms and
conditions of any applicable equipment leases or financing arrangements and
Sections 10.1 and 10.3, any furniture, fixtures, and equipment placed in the
Premises by Tenant may be replaced or removed by Tenant periodically during the
term.

10.3 REMOVAL OF FURNITURE, FIXTURES, AND EQUIPMENT AT EXPIRATION OF LEASE. At
the expiration of this Lease (whether at the end of the initial term, if no
Extension Option has been exercised, or at the end of any then applicable
Extension Term, if any Extension Option has been exercised), Tenant shall remove
all Tenant's furniture and equipment from the Premises; provided, however, that
Landlord shall have the option, but not the obligation, to elect, by written
notice to Tenant prior to such expiration, to have any or all of such furniture
and equipment, as Landlord may specify in any such notice, become the property
of Landlord upon such expiration and remain upon and be surrendered with the
Premises, without disturbance, molestation or injury. In any such event,
Landlord shall pay to Tenant an amount equal to the lesser of the actual cash
value or the unamortized value of such furniture or equipment, as then carried
on Tenant's books for federal income tax purposes. Notwithstanding the foregoing
and subject to any election by Landlord pursuant to Section 12.1, all building
fixtures and equipment (including, without limitation, air conditioning units,
heating equipment, plumbing fixtures, hot water heaters, wall covering,
carpeting or other floor covering cemented or otherwise affixed to the floor,
cabinetry and draperies) that may be installed in or attached to the Premises by
Tenant shall, on the expiration date or earlier termination of this Lease for
any reason, be the property of Landlord and remain upon and be surrendered with
the Premises, without disturbance, molestation or injury. Tenant shall make such
repairs and restoration of the Premises as are necessary to correct any damage
to the Premises from the removal of any furniture, fixtures, equipment or
alterations by Tenant and shall, subject to any election by Landlord pursuant to
Section 12.1, return the Premises to Landlord in the same condition existing (i)
as to the Club

<PAGE>   11

portion of the Premises, when the Club was completed and opened for business,
(ii) as to the Office Space portion of the Premises, when the Office Space was
fully built out with initial tenant improvements and (iii) as to the associated
parking and common areas of the Premises, when the Deck was completed, in each
instance, normal wear and tear excepted.

10.4 RIGHT TO AFFIX SIGNS. Tenant shall have the right to affix signs
customarily used in its business upon the windows, doors, interior, and exterior
walls of the Premises, and such free-standing signs as may seem appropriate to
Tenant and are authorized by any governmental authority having jurisdiction over
the Premises. Tenant shall remove all such signs on the expiration date or
earlier termination of this Lease for any reason, unless Landlord shall elect,
in its sole discretion and by written notice to Tenant, to have any or all of
such signs be surrendered with the Premises, in which case any such signs shall
become the property of Landlord and remain upon and be surrendered with the
Premises, without disturbance, molestation or injury.

                        11. MAINTENANCE OF THE PREMISES.

11.1 TENANT'S OBLIGATION TO MAINTAIN THE PREMISES. During the term of this
Lease, Tenant shall, at its own expense, keep and maintain the entire Premises
in good order and repair, including, but not limited to, the interior, exterior,
floors, walls, roof, foundation, structural elements, plumbing, pipes,
electrical wiring, switches and conduits and all mechanical equipment relating
to the Premises; and the sidewalks, curbs, walls, trash enclosures, landscaping
with sprinkler system (if installed), light standards, and parking areas which
are a part of the Premises. Tenant shall make such repairs and replacements as
may be necessary, regardless of whether the benefit of such repair or
replacement extends beyond the term of this Lease. The Premises shall be
returned to Landlord at the termination or expiration of this Lease in good
condition, ordinary wear excepted. For as long as Tenant is not in default of
any of the terms and conditions of this Lease, Landlord hereby assigns to Tenant
the right to enforce all building contractor, subcontractor, and manufacturer's
warranties and guarantees applicable to the Premises; and Landlord shall
cooperate with Tenant at Tenant's request in any action to enforce such
warranties and guarantees. In the event of destruction of the Premises by fire
or casualty, the condition of the Premises upon termination of this Lease shall
be governed by Section 14.

11.2 OBLIGATION TO KEEP THE PREMISES CLEAR. Tenant shall keep the Premises,
including sidewalks adjacent to the Premises and loading areas allocated for the
use of Tenant, clean and free from rubbish and debris at all times. Tenant shall
store all trash and garbage within the Premises and arrange for regular pickup
and cartage of such trash and garbage at Tenant's expense.

11.3 LANDLORD TO HAVE NO OBLIGATION TO MAINTAIN THE PREMISES. Landlord shall
have no obligation whatsoever to construct, improve, repair, maintain or rebuild
the Premises (collectively, "Construction Obligations"). Tenant further
acknowledges and agrees that any loan that may, from time to time, be secured,
in whole or in part, by the Premises, or any part thereof, may impose certain
Construction Obligations upon Landlord, including, without limitation, those
relating to items of deferred maintenance, deferred repair or capital
improvements that may be identified, from time to time, by any such lender
(collectively, "Lender Construction Obligations"). Without limiting the
generality of the foregoing, Tenant shall be solely responsible, as between
Landlord and Tenant, for complying, diligently, promptly and at Tenant's sole
cost and expense, with any Lender Construction Obligations of which Tenant has
notice, in each instance, on or before the date for compliance, and otherwise in
full satisfaction of the other terms and conditions for such compliance, set
forth in the applicable loan documents, including, without limitation, providing
Landlord with such evidence as may be required by Landlord, from time to time,
to satisfy Lender that such Lender Construction Obligations have been satisfied
(including, without limitation, lien releases, architectural certifications,
itemization of costs spent, paid receipts and whatever other documents Landlord
may be required to provide to such lender during and upon the completion of such
Lender Construction Obligations).

<PAGE>   12

                          12. REPAIRS AND ALTERATIONS.

12.1 RIGHT TO MAKE ALTERATIONS. At all times during the term of this Lease,
Tenant shall have the right to make alterations, additions, and improvements to
the interior or exterior of the Premises and parking areas adjacent to the
Premises. Nevertheless, any one alteration or addition, or related series of
alterations or additions, that is over Fifty Thousand Dollars ($50,000) or is
structural in nature or affects building systems shall not be made by Tenant
without prior written consent of Landlord, which such consent shall not be
unreasonably withheld, conditioned or delayed. Any alterations, additions, and
improvements which may be made or installed by Tenant shall be removed from the
Premises at the termination or expiration of this Lease if Landlord's consent
thereto was required and Landlord conditioned such consent on such removal. In
addition, if Landlord, in Landlord's sole discretion, shall elect to require
Tenant, by written notice to Tenant, to restore some or all of the Premises to
the condition existing when Tenant or an affiliate first acquired title to the
Premises, then Tenant shall, diligently and in a good and workmanlike manner,
commence and complete such restoration, lien free and otherwise in accordance
with the terms and conditions of this Lease, on or before the termination or
expiration of this Lease if commercially reasonable to do. If it is not
commercially reasonable for Tenant to complete such restoration by such
expiration or termination, then Tenant shall do so as soon as reasonably
possible thereafter. Landlord shall give any such notice requiring such
restoration, if at all, by no later than the date occurring 30 days after the
date of such expiration or termination. Otherwise, any such alterations,
additions, and improvements shall remain upon the Premises and be surrendered
with the Premises to Landlord. Any alteration, addition, or improvement shall be
accomplished by Tenant in a good workmanlike manner, in conformity with
applicable laws and regulations and by a contractor approved by Landlord. Upon
completion of any work, Tenant shall provide to Landlord "as-built" plans,
copies of all construction contracts, building permits, inspection reports and
all other required governmental approvals, and proof of payment of all labor and
materials. Tenant shall pay when due all claims for such labor and materials and
shall give Landlord at least twenty (20) days prior written notice of the
commencement of any such work. Landlord may enter upon the Premises, in such
case, for the purpose of posting appropriate notices, including, but not limited
to, notices of nonresponsibility.

12.2 TENANT SHALL NOT RENDER PREMISES LIABLE FOR ANY LIEN. Tenant shall have no
right, authority, or power to bind Landlord, or any interest of Landlord in the
Premises, nor to render the Premises liable for any lien or right of lien for
the payment of any claim for labor, material, or for any charge or expense
incurred to maintain, to repair, or to make alterations, additions, and
improvements to the Premises. Tenant shall in no way be considered the agent of
Landlord in the construction, erection, modification, repair, or alteration of
the Premises. Notwithstanding the above, Tenant shall have the right to contest
the legality or validity of any lien or claim filed against the Premises. No
contest shall be carried on or maintained by Tenant after the time limits in the
sale notice of the Premises for any such lien or claim unless Tenant (i) shall
have duly paid the amount involved under protest; (ii) shall have procured and
recorded a lien release bond from a bonding company acceptable to Landlord in an
amount not less than one hundred fifty percent (150%) of the amount involved; or
(iii) shall have procured a stay of all proceedings to enforce collection. Upon
a final adverse determination of any contest, Tenant shall pay and discharge the
amount of the lien or claim determined to be due, together with any penalties,
fines, interest, cost, and expense which may have accrued, and shall provide
proof of payment to Landlord.

12.3 TENANT'S INITIAL CONSTRUCTION OBLIGATIONS. Subject to the other terms and
conditions of this Lease, Tenant shall, as expeditiously as possible consistent
with sound construction practices, complete, at its expense, the construction of
the Club, the Deck and all required initial tenant improvements to the Office
Space; it being agreed, however, that in any and all events, Tenant shall have
completed the construction of the Deck and all required initial tenant
improvements to the Office Space on or before the date occurring 12 months after
the Effective Date. If Tenant shall fail to complete any of such work of
construction by such date, then Landlord may elect, in its sole discretion and
from time to time, but shall not be obligated, to complete any or all of such
work of construction, at Tenant's cost and expense. Any

<PAGE>   13

such sums so expended by Landlord shall constitute rent and be due Landlord by
Tenant within five (5) business days of Landlord's presenting to Tenant
reasonably satisfactory evidence that such sums either are due or have been
paid. If Landlord shall elect, in its sole discretion, to complete any of such
work, then Landlord may, at any time or from time to time thereafter, also
elect, in its sole discretion, to cease any or all of such work of construction
before its completion and with no liability whatsoever to Tenant as a result
thereof. Tenant shall indemnify, defend and hold Landlord harmless from and
against any and all claims, costs, damages, liabilities and losses of any kind
or nature arising out of or in connection with any such election by Landlord,
from time to time, either to complete or to cease all or any portion of such
work of construction.

                          13. INDEMNITY AND INSURANCE.

13.1 INDEMNIFICATION OF THE PARTIES. The parties to this Lease have the
following indemnification obligations:

        13.1.1 INDEMNIFICATION BY TENANT. Subject to Section 13.1.2, Tenant
shall indemnify, defend, protect and hold Landlord and its affiliates harmless
from and against any and all claims, actions, proceedings, losses, costs,
damages, expenses and/or liabilities (including, without limitation, court costs
and reasonable attorneys' fees) incurred in connection with or arising at any
time and from any cause whatsoever, and whether before or after the Commencement
Date, in or about the Premises, including, without limiting the generality of
the foregoing: (i) any default by Tenant in the observance or performance of any
of the terms, covenants, or conditions of this Lease on Tenant's part to be
observed or performed; (ii) the use or occupancy of the Premises by Tenant or
any person claiming by, through, or under Tenant; (iii) the condition of the
Premises or any occurrence or happening on the Premises from any cause
whatsoever, or (iv) any acts, omissions, or negligence of Tenant or any person
claiming by, through, or under Tenant, or of the contractors, agents, servants,
employees, visitors, or licensees of Tenant or any such person, in, on, or about
the Premises, in each such instance either prior to or during the Lease term
(including, without limitation, any holdovers in connection therewith),
including, without limitation, any acts, omissions, or negligence in the making
or performance of any alterations. Tenant further agrees to indemnify, defend,
protect and hold harmless Landlord's agents, and the landlord or landlords under
all ground or underlying leases, from and against any and all claims, actions,
proceedings, losses, costs, damages, expenses and/or liabilities (including,
without limitation, reasonable attorney's fees) incurred in connection with or
arising from any claims by any persons by reason of injury to persons or damage
to property occasioned by any use, occupancy, condition, occurrence, happening,
act, omission, or negligence referred to in the preceding sentence. The
provisions of this Section shall survive the expiration or sooner termination of
this Lease with respect to any act or omission occurring prior to such
expiration or termination, and shall not be limited by reason of any insurance
carried by Landlord and Tenant.

        13.1.2 INDEMNIFICATION BY LANDLORD. Landlord shall indemnify, defend,
protect and hold Tenant and its affiliates harmless from and against any and all
claims, actions, proceedings, losses, costs, damages, expenses and/or
liabilities (including, without limitation, court costs and reasonable
attorneys' fees) proximately caused by: (a) any breach or default in the
performance of any obligation required to be performed by Landlord under the
terms of this Lease or (b) any act or omission of Landlord or its agents and
employees amounting to willful misconduct or fraud.

<PAGE>   14

13.2 INSURANCE COMPANY REQUIREMENT. Insurance required by this Lease shall be
issued by companies holding a general policyholder's rating of at least A -VII
as set forth in the most current issue of Best's Insurance Guide and authorized
to do business in the state in which the Premises are located. If this
publication is discontinued, then another insurance rating guide or service
generally recognized as authoritative shall be substituted by Landlord.

13.3 INSURANCE CERTIFICATE REQUIREMENTS. Tenant shall deliver to Landlord
certificates evidencing the existence and amounts of the insurance with loss
payable clauses as required herein and endorsements evidencing required
additional insured coverage. Each such certificate shall state that the
applicable such policy shall not be cancelable or subject to reduction of
coverage or other modification except after thirty (30) days prior written
notice to Landlord.

13.4 MINIMUM ACCEPTABLE INSURANCE COVERAGE REQUIREMENTS.

        13.4.1 Tenant shall, at Tenant's expense, obtain and keep in full force
during the term of this Lease a policy of combined single limit personal injury
and property damage insurance insuring Tenant against any liability arising out
of the ownership, use, occupancy, or maintenance of the Premises and all of its
appurtenant areas. The insurance shall, at all times, be in an unimpaired amount
not less than Five Million Dollars ($5,000,000) per occurrence. The policy shall
provide blanket contractual liability coverage. However, the limits of the
insurance shall not limit the liability of Tenant. In addition, Tenant shall, at
Tenant's expense, obtain and keep in full force during the term of this Lease an
umbrella liability policy in an amount not less than Five Million Dollars
($5,000,000).

        13.4.2 Tenant shall, at Tenant's expense, obtain and keep in force
during the term of this Lease a policy or policies of insurance covering loss or
damage to the Premises. The insurance shall be in an amount not less than the
replacement value of the improvements (less slab, foundation, supports, and
other customarily excluded improvements) against all perils of fire, extended
coverage, vandalism, malicious mischief, and special extended perils ("All
Risks," as such term is used in the insurance industry). The policy shall
include a code upgrade endorsement. In addition, Tenant shall, at Tenant's
expense, obtain and keep in force during the term of this Lease a policy or
policies of insurance covering loss or damage due to perils caused by earthquake
and/or flood if the Premises is in a certified flood zone. A stipulated value or
agreed amount endorsement deleting the co-insurance provision to the policy
shall be procured.

        13.4.3 Tenant shall also obtain and keep in force during the term of
this Lease a policy of business interruption insurance covering a period of one
(1) year. This insurance shall cover all real estate taxes, insurance costs and
operating expenses for the same period in addition to one (1) year's Base
Monthly Rent.

        13.4.4 Tenant shall also obtain and keep in force during the term of
this Lease a worker's compensation policy, insuring against and satisfying
Tenant's obligations and liabilities under the worker's compensation laws of the
state in which the Premises are located, including Employer's Liability
insurance, in an amount of not less than One Million Dollars ($1,000,000).

        13.4.5 None of the above-required coverages shall have a deductible in
an amount greater than Ten Thousand Dollars ($10,000.00).

        13.4.6 Tenant's insurance shall be primary, and any insurance Landlord
may carry, from time to time, shall be secondary and noncontributory.

<PAGE>   15

        13.4.7 Tenant shall provide such other or different insurance coverage
as either Landlord or a lender of Landlord may require from time to time.

        13.4.8 If, from time to time, Tenant customarily provides insurance
coverage at other of its facilities in amounts which exceed the requirements in
this Lease, or other similar facilities carry greater coverage, then Tenant
shall similarly provide such greater coverage hereunder.

13.5 ADDITIONAL INSUREDS. Tenant shall name as additional insureds on all
insurance, Landlord, Landlord's successors, assignee(s), nominee(s),
nominator(s), and agents with an insurable interest as follows:

        "Landlord and, as applicable, its direct and indirect officers,
directors, shareholders, members, managers, partners and all successors,
assignee(s), subsidiaries, corporations, partnerships, proprietorships, joint
ventures, firms, and individuals as heretofore, now, or hereafter constituted on
which the named insured has the responsibility for placing insurance and for
which similar coverage is not otherwise more specifically provided."

13.6 MORTGAGE ENDORSEMENT. If requested by Landlord, the policies of insurance
required to be maintained hereunder shall bear a standard first mortgage
endorsement in favor of any holder or holders of a first mortgage lien or
security interest in the property with loss payable to such holder or holders as
their interests may appear.

13.7 RENEWALS, LAPSES OR DEFICIENCIES. Tenant shall, at least thirty (30) days
prior to the expiration of such policies or on or before such earlier date as
any lender of Landlord may require, from time to time, furnish renewal
certificates of insurance or renewal binders to Landlord and to any lender of
Landlord of which Tenant has notice. Should Tenant fail to provide to Landlord
the renewals or renewal binders, or in the event of a lapse or deficiency of any
insurance coverage specified herein for any reason, Landlord may immediately
replace the deficient insurance coverage with a policy of insurance covering the
Premises of the type and in the limits set forth above. Upon written notice from
Landlord of the placement of insurance, Tenant shall immediately reimburse
Landlord for the total cost of premiums and expense of such insurance placement.
Tenant shall not do or permit to be done anything which shall invalidate the
insurance policies. If Tenant does or permits to be done anything which shall
increase the cost of the insurance policies, then upon Landlord's demand Tenant
shall reimburse Landlord for any additional premiums attributable to any acts or
omissions or operations of Tenant causing the increase in the cost of insurance.
Notwithstanding the foregoing, however, if a lender of Landlord shall require,
at any time or from time to time, the establishment of a monthly impound account
to cover the cost of any insurance coverage required under this Lease, then
Tenant shall make such monthly deposits into such account as may be required
from time to time by such lender.

13.8 WAIVER OF SUBROGATION. Tenant and Landlord each hereby release and relieve
the other, and waive their entire right of recovery against the other, for loss
or damage caused by any peril insured against under Section 13, whether due to
the negligence of Landlord or Tenant or their agents, employees, contractors
and/or invitees to the extent that this waiver will not invalidate such
insurance. Tenant and Landlord shall, upon obtaining the policies of insurance
required hereunder, give notice to the insurance carrier or carriers that the
foregoing mutual waiver of subrogation is contained in this Lease.

13.9 EXEMPTION OF LANDLORD FROM LIABILITY. Tenant hereby agrees that Landlord
shall not be liable for injury to Tenant's business or any loss of income
therefrom or for damage to the goods, wares, merchandise or other property of
Tenant or Tenant's employees, invitees, or any other person in or about the
Premises, nor shall Landlord be liable for injury to the person of Tenant,
Tenant's employees, agents, invitees or contractors, whether such damage or
injury is caused by or results from fire, steam, electricity, gas, water or
rain, or from the breakage, leakage, obstruction or other defects of pipes,
sprinklers, wires, appliances,

<PAGE>   16

plumbing, air conditioning or lighting fixtures, or from any other cause,
whether the said damage or injury results from conditions arising upon the
Premises or upon other portions of the Building, or from other sources or
places, and regardless of the cause of such damage or injury, and whether the
means of repairing the same is inaccessible to Tenant. Landlord shall not be
liable for any damages arising from any act or neglect of any other occupant, if
any, of any portion of the Premises.

14. PARTIAL AND TOTAL DESTRUCTION OF THE PREMISES. In the event any part or all
of the Premises shall at any time during the term of this Lease be damaged or
destroyed, regardless of cause, Tenant shall give prompt notice to Landlord.
Tenant shall repair and restore all of the Premises to their original condition,
including buildings and all other improvements, as soon as circumstances permit.
Tenant shall hold Landlord free and harmless from any and all liability
resulting from such repairs and restoration. Tenant shall pay for any cost of
repair or restoration in excess of the available insurance proceeds. Tenant is
not entitled to any rent abatement during or resulting from a utility stoppage
or disruption as well as any disturbance on or partial or total destruction of
the Premises. Tenant hereby waives the provisions of California Civil Code
Sections 1932(2) and 1933(4) and provisions of any successor or other law of
like import.

                                15. CONDEMNATION.

15.1 CONDEMNATION DAMAGES. In the event of the taking or conveyance of the whole
or any part of the Premises by reason of condemnation by any public or
quasi-public body, Landlord and Tenant shall represent themselves independently
in seeking damages before the condemning body. Each party shall be entitled to
the amount awarded respectively to each. Tenant shall only be entitled to make a
claim, and Landlord shall not make a claim, in such proceedings for the
following:

        15.1.1 A sum attributable to the unamortized values of Tenant's
leasehold improvements or alterations, calculated based on the useful life of
such improvements or alterations for federal income tax purposes, made to the
Premises by Tenant in accordance with this Lease, which improvements or
alterations Tenant would have the right to remove from the Premises upon the
termination of the Lease pursuant to the provisions of this Lease; and

        15.1.2 Tenant's moving expenses, including, without limitation, its
costs in removing its merchandise, furniture, trade fixtures, and equipment.

15.2 TERMINATION OF LEASE OR RENT ADJUSTMENT DUE TO CONDEMNATION. In the event
that a condemnation prevents or substantially impairs Tenant's ability to use
the Premises for the purposes specified in Section 8, Tenant may terminate this
Lease by giving Landlord sixty (60) days written notice of its intention to
terminate this Lease after receiving notice of the condemnation from the
condemning authority. The effective date of the termination shall be the actual
date of such taking. In the event of termination, the rent for the last month of
Tenant's occupancy shall be prorated, and Landlord shall refund to Tenant any
rent paid in advance. Tenant shall thereupon be released from its obligation to
pay rent. In the event that a condemnation does not prevent or substantially
impair Tenant's ability to use the Premises for the purposes specified in
Section 8, the Base Monthly Rent shall be reduced in proportion to the amount by
which the square footage of the Premises has been reduced by such condemnation.

                         16. ASSIGNMENT AND SUBLETTING.

16.1 NO TRANSFERS. Except as set forth in Section 16.2, Tenant may not, directly
or indirectly, (a) sell, assign, transfer, mortgage, pledge or hypothecate the
whole or any part of its interest under this Lease, (b) sublet the whole or any
part of the Premises, or (c) allow the occupancy of the whole or any part of the
Premises by another by license, concession, joint venture, management agreement,
or otherwise, without in each case obtaining the prior written consent of
Landlord, which consent shall not be unreasonably

<PAGE>   17

withheld, conditioned, or delayed. It is hereby deemed reasonable for Landlord
to withhold its consent, without limitation, if said decision is rendered in
good faith and is based upon the character, reputation, financial condition,
and/or business acumen and experience of Tenant's proposed successor or if
Landlord is required to obtain the consent of any lender to such proposed
subletting or assignment and, for whatever reason, such lender does not give
such consent. Likewise, any conditional or delayed response by Landlord to any
such proposed subletting or assignment shall conclusively be deemed reasonable
on the part of Landlord if caused by any corresponding conditional or delayed
response by such lender. For the purposes of this Section 16 and this Lease
generally, any of the events set forth in subsection (a), (b), or (c) above or
as provided in this Section 16.1.1, and whether being done directly or
indirectly, shall be deemed included in the references "assign," "assignment,"
"sublet," "subletting", "transfer" or any other word of like or similar import.
Without limiting the discretion of Landlord in granting or withholding consent
under this Section 16, Tenant shall not request the consent of Landlord to a
transfer, subletting or assignment (i) for any use other than the uses specified
for certain portions of the Premises in Section 8 hereof or (ii) to any party if
the quality of the business operation is or may be adversely affected thereby.
Landlord shall further not be required to consent to any assignment if Tenant
does not concurrently deliver to Landlord a reaffirmation of any guaranty of
this lease, acceptable to Landlord in its sole discretion, consenting to such
assignment. Any transfer, subletting or assignment to which Landlord has
consented shall be by an instrument in writing, satisfactory to Landlord, and
any assignee, sublessee, transferee, licensee, concessionaire or mortgagee shall
agree for the benefit of Landlord to be bound by, assume and perform all the
terms, covenants and conditions of this Lease. If Tenant transfers, sublets or
assigns its interest in this Lease, then, except in the case of one or more
subleases for not more than an aggregate of twenty five percent (25%) of the
Premises in which case the following shall not apply, the Base Monthly Rent
shall be automatically increased, but not decreased, as of the effective date of
such subletting or assignment by an amount equal to fifty percent (50%) of the
difference between the then current Base Monthly Rent and the "Fair Market
Rental Rate", which shall be determined as provided in the following subsection.
In the event of a subletting or assignment of all or any part of the Premises,
due consideration shall be given, in determining both the current Base Monthly
Rent and the Fair Market Rental Rate for the sublet or assigned portion of the
Premises, that not every part of the Premises may be of equal value to a tenant
such that any stated rental rate for the entire Premises may understate or
overstate what the corresponding rental rate for only a particular portion of
the Premises might be inasmuch as any rental rate for the entire Premises
represents a "blended" rental rate for all the different portions of the
Premises.

        16.1.1 Landlord and Tenant shall each select a real estate broker with
at least ten (10) years experience leasing commercial space in the Thousand Oaks
area, and within ten (10) business days after both appraisers have been so
selected, each shall submit to the other his or her estimate of the Fair Market
Rental Rate, for Base Monthly Rent for a new lease of similar duration for the
Premises. If either broker fails to timely submit his or her estimate, such
estimate shall be disregarded and the one (1) timely estimate shall alone
constitute the Fair Market Rental Rate for the Premises. If each broker provides
a timely estimate and the higher of the two (2) is within five percent (5%) of
the lower, the two (2) shall be averaged, and such average shall be the Fair
Market Rental Rate for the Premises. If the two (2) estimates are not so within
five percent (5%), the two (2) brokers shall within an additional ten (10)
business days select a third qualified broker, who shall submit his or her
estimate to the other two (2) brokers within ten (10) business days after he or
she is selected, and the two (2) closest estimates shall be averaged, and such
average shall be the Fair Market Rental Rate for the Premises. If either party
fails timely to select its broker as provided above, the other party's broker
alone shall determine the Fair Market Rental Rate for the Premises. If the two
(2) brokers selected by Landlord and Tenant are unable to timely agree upon a
third broker, or if the third broker fails to timely submit his or her estimate,
the third broker (or a replacement therefor in the event the third broker
selected by the first two (2) has failed to timely submit his or her estimate)
shall be selected by the Landlord. Each party shall pay the fees and costs of
its broker

<PAGE>   18

and fifty percent (50%) of the fees and costs of the third broker (if one is
required). In determining the Fair Market Rental Rate, Landlord and Tenant, and
all brokers, if any are needed, shall look to the net effective rent payable on
leases for comparable space in buildings of comparable size, quality and
location, with due regard to the Base Monthly Rent for the Extension Terms, and
to the then-prevailing base year or other method of calculating and charging for
costs of operation, but valuing the existing improvements, if any, in the
subject space on the basis of renting to a tenant for whom said improvements are
acceptable as adequate. No deduction shall be made for customary or other
broker's fees, legal expenses, or other expense which may be saved, or for
tenant improvement allowances and/or tenant improvement construction time which
may be saved.

        16.1.2 If Tenant is a corporation, limited liability company,
unincorporated association, trust, general or limited partnership or any other
entity, then the direct or indirect sale, assignment, transfer or hypothecation
of any stock or other ownership interest of such entity which from time to time
in the aggregate exceeds twenty-five percent (25%) of all such interests shall
be deemed an assignment or transfer subject to the provisions of this Section 16
and otherwise for this Lease generally. Upon the occurrence of an Event of
Default (as provided in Section 17), if the Premises (or any part thereof) have
been sublet, then Landlord, in addition to any other remedies herein provided or
provided by law, may at its option collect directly from such sublessee all
rents becoming due to Tenant under such sublease and apply such rent against any
sums due to Landlord from Tenant hereunder, and no such collection shall be
construed to constitute a novation or release of Tenant from the further
performance of Tenant's obligations under this Lease. If a permitted sublease
terminates by reason of a termination of the Lease, Landlord may, in its sole
discretion, elect, by delivering written notice to such subtenant, to assume the
obligations of Tenant under such sublease, in which event such subtenant shall
recognize Landlord as the sublandlord under the sublease as if Landlord were
Tenant under such sublease (an "Assumption"). If there shall be an Assumption,
then Landlord shall not be liable to subtenant for (a) the return of any
security deposit that may have been previously posted by such subtenant under
such sublease, (b) any construction obligation of Tenant under such sublease or
(c) any default of Tenant under such sublease, including, without limitation,
any default that may be in the nature of a continuing default commencing prior
to the Assumption and continuing thereafter. Any assignment or transfer of
Tenant's interest under this Lease, and any proposed subletting or occupancy of
the Premises not in compliance with this Section 16, shall be void and shall, at
the option of Landlord exercisable by notice to Tenant, terminate this Lease.
This Lease shall not be assignable by operation of law, except that if Tenant is
a natural person, then this Lease shall be binding upon and inure to the benefit
of the estate of Tenant.

        16.1.3 If Tenant sublets any of the Club portion of the Premises for a
use that is not exclusively for the benefit of the members of Tenant's Club,
then upon the effective date of such subletting, the Base Monthly Rent for such
portion of the Premises shall be the greater of (i) Fair Market Rental Rate (as
defined above) or (ii) the Base Monthly Rent payable immediately before such
event.

16.2 PERMITTED TRANSACTIONS.

        16.2.1 Notwithstanding anything to the contrary contained in this
Section 16, the issuance or trading of stock registered under the Securities
Exchange Act of 1934, as amended, shall not be deemed to result in an assignment
hereunder, and shall not require the prior written consent of the Landlord.

        16.2.2 Notwithstanding anything to the contrary contained in this
Section 16, Tenant may assign its interest in this Lease or sublet any part of
the Premises, without the prior written consent of Landlord, to (i) any
corporation or other entity into which or with which Tenant or its parent merges
or consolidates; (ii) any parent, subsidiary, successor or affiliated
corporation of Tenant or its parent; or (iii) any corporation or other entity
which acquires all or substantially all of the assets or issued and outstanding

<PAGE>   19

shares of capital stock of Tenant or its parent; provided, in any and each such
instance, that any such assignee or successor shall agree in writing, in form
and substance reasonably acceptable to Landlord, to assume and perform all of
the terms and conditions of this Lease on Tenant's part to be performed. In the
event of any transaction of a type described in this Section 16.2.2 that
involves a change in control or in the event of any other transaction that,
directly or indirectly, involves a change in control, and as to the Club's
portion a change in use (even with Landlord's consent which is required), then
the Base Monthly Rent immediately following such event shall be automatically
increased, but not decreased, as of the effective date of such change by an
amount equal to fifty percent (50%) of the difference between the then current
Base Monthly Rent and the Fair Market Rental Rate for the Premises (as defined
above); provided, however, for the purpose of this calculation (A) during the
initial ten years of the Term the then current Base Monthly Rent for the
Premises shall be deemed reduced by Six Thousand Six Hundred Sixty Seven Dollars
($6,667) per month and (B) for the Base Monthly Rent payable pursuant to
Subsections 4.3.1, 4.3.2, 4.3.3, 4.3.4 and 4.3.5, if applicable, shall each
increase, but not decrease, by the same percentage increase as the increase as a
result of the provision of this Subsection. As used in this Section 16.2.2, a
transaction, or series of transactions, shall result in a "change in control"
if, as a result of such transaction or series of transactions, there shall have
been a change in the person or persons having the ultimate power, directly or
indirectly and whether through the ownership of equity interests (whether
limited partnership interests, limited liability company interests, stock,
and/or any other interests), the ownership of debt instruments or by contract
right, to direct the Tenant.

        16.2.3 Notwithstanding anything to the contrary contained in this
Section 16, Tenant may sublet up to 25% of the Club portion of the Premises for
ancillary uses typical to a Spectrum Club, in any such instance without the
prior written consent of Landlord, if (A) Tenant provides Landlord with a copy
of any such sublease promptly upon written request, from time to time, by
Landlord, (B) except for the economic terms of any such sublease, the terms and
conditions of such sublease are consistent with the terms and conditions of this
Lease and (C) any such subtenant agrees, in its sublease as regards itself and
its sublease, to provide directly to Landlord, from time to time, the
information specified in Sections 22.3 and 23.2.

        16.2.4 Notwithstanding anything to the contrary contained in this
Section 16, Tenant may sublease the Office Space portion of the Premises for
general office use, and no other use, in any such instance without the prior
written consent of Landlord but subject to the requirements of any lender of
Landlord, if (A) Tenant provides Landlord with a copy of any such sublease
promptly when executed and thereafter promptly upon written request, from time
to time, by Landlord, (B) except for the economic terms of any such sublease,
the terms and conditions of such sublease are consistent with the terms and
conditions of this Lease, (C) any such subtenant agrees, in its sublease as
regards itself and its sublease, to provide directly to Landlord, from time to
time, the information specified in Sections 22.3 and 23.2 and (D) the economic
terms and conditions of any such sublease, when taken as a whole, are no more
favorable to such subtenant than market conditions for comparable office space
in Thousand Oaks, California at the time of such sublease.

16.3 LANDLORD'S ADDITIONAL RIGHTS RE CLUB SUBLETTING. If (i) Tenant (or an
approved sublessee) desires to sublet any portion of the Club portion of the
Premises for a use other than that specified in Section 8, and (ii) the portion
of the Club portion of the Premises so desired to be sublet shall, when
aggregated with all other portions of the Premises then being sublet for any use
other than that specified in Section 8, account for more than twenty-five
percent (25%) of the Club portion of the Premises, then Tenant shall give not
less then ninety (90) days' prior written notice thereof to Landlord setting
forth the name of the proposed subtenant, the term, rental rate and all other
relevant particulars of the proposed subletting, including without limitation,
evidence satisfactory to Landlord that the proposed sublessee will immediately
occupy and thereafter use the sublet portion of the Premises for the entire term
of the sublease. In addition to

<PAGE>   20

Landlord's right of approval pursuant to Section 16.1, Landlord shall have the
option, if any such subletting is proposed, to cancel this Lease as to the
affected portion of the Premises as of the proposed effective date of the
subletting set forth in Tenant's notice. The option shall be exercised, if at
all, by Landlord giving Tenant written notice thereof within sixty (60) days
following Landlord's receipt of Tenant's written request. Upon any such
cancellation, Tenant shall pay to Landlord all amounts, as estimated by
Landlord, payable by Tenant to such termination date with respect to that
portion of any obligations, costs or charges which are the responsibility of
Tenant under this Lease allocable to the affected portion of the Club portion of
the Premises. Further, upon any such cancellation, (a) Landlord and Tenant shall
have no further obligations or liabilities to each other with respect to the
affected portion of the Club portion of the Premises, except with respect to
obligations or liabilities which have accrued as of such cancellation date (in
the same manner as if such cancellation date were the date originally fixed for
the expiration of the term) and (b) if less than all of the Club portion of the
Premises are sublet, then the rent payable under Section 4 shall be reduced by
the lesser of (i) a prorated reduction of rent based upon the area of the sublet
portion as compared with the entire Premises, (ii) the base rent payable as set
forth in the proposed sublease, and (iii) Landlord's reasonable allocation as
between the sublet portion and the remainder of the Premises. Upon any such
cancellation, any new tenant (and any such new tenant's employees, licensees and
invitees) to whom Landlord may elect, from time to time, to lease any or all of
the affected portion of the Premises shall be entitled to undisturbed ingress
and egress through the unaffected portion of the Premises still leased by Tenant
if and to the extent reasonably necessary for such new tenant to access its new
premises but subject to Tenant's rules of operation for its Club applied in a
consistent and nondiscriminatory manner. Without limitation, Landlord may lease
the affected portion of the Club portion of the Premises to the proposed
sublessee, without liability to Tenant. Landlord's failure to exercise said
cancellation right as herein provided shall not be construed as Landlord's
consent to the proposed subletting.

16.4 LANDLORD'S ADDITIONAL RIGHTS RE ASSIGNMENT. Tenant shall in no event assign
less than its entire interest in this Lease. If Tenant desires to assign all
(but not less than all) of its interest in this Lease, Tenant shall give not
less than ninety (90) days' prior written notice thereof to Landlord setting
forth the name of the proposed assignee, the terms of the assignment, and any
other relevant particulars of the proposed assignment. In addition to Landlord's
right of approval pursuant to Section 16.1, Landlord shall have the option, if
any such assignment is proposed, to cancel this Lease as of the proposed
effective date of the assignment set forth in Tenant's notice. The option shall
be exercised, if at all, by Landlord giving Tenant written notice thereof within
sixty (60) days following Landlord's receipt of Tenant's written request. Upon
any such cancellation, Tenant shall pay to Landlord all amounts, as estimated by
Landlord, payable by Tenant to such termination date with respect to any
obligations, costs or charges which are the responsibility of Tenant under this
Lease. Further, upon any such cancellation, Landlord and Tenant shall have no
further obligations or liabilities to each other under this Lease, except with
respect to obligations or liabilities which have accrued as of such cancellation
date (in the same manner as if such cancellation date were the date originally
fixed for the expiration of the term). Without limitation, Landlord may lease
the Premises to the proposed assignee, without liability to Tenant. Landlord's
failure to exercise said cancellation right as herein provided shall not be
construed as Landlord's consent to the proposed assignment.

16.5 NO RELEASE OF TENANT. Regardless of Landlord's consent, no subletting or
assignment shall release Tenant of Tenant's obligation or alter the primary
liability of Tenant to pay Base Monthly Rent and to perform all other
obligations to be performed by Tenant hereunder. The acceptance of rent by
Landlord from any other person shall not be deemed to be a waiver by Landlord of
any provision hereof. Consent to one (1) assignment or subletting shall not be
deemed consent to any subsequent assignment or subletting. If any assignee of
Tenant or any successor of Tenant defaults in the performance of any of the
terms hereof, then Landlord may proceed directly against Tenant without the
necessity of exhausting remedies against said assignee. Landlord may consent to
subsequent assignments or subletting of this Lease or amendments or
modifications to this Lease with assignees of Tenant without notifying Tenant or
any successor of Tenant and without obtaining its or their consent thereto, and
such action shall not relieve Tenant of liability under

<PAGE>   21

the Lease. In this regard, Tenant waives any rights or defenses of a surety,
including without limitation any set forth in California Civil Code Sections
2809, 2810, 2814, 2815, 2819, 2825, 2839, 2845 through 2850, 2899 and 3433, in
Article 3 of the California Commercial Code and in any other relevant statutes
now or hereafter enacted.

16.6 LANDLORD'S RIGHT OF ASSIGNMENT. Landlord shall be free at all times,
without need of consent or approval by Tenant, to assign its interest in this
Lease and/or to convey fee title to the Premises. Each conveyance by Landlord of
Landlord's interest in the Lease or the Premises prior to expiration or
termination hereof shall be subject to this Lease and shall relieve the grantor
of any further obligations or liability as Landlord, and Tenant shall look
solely to Landlord's successor in interest for all future obligations of
Landlord. Tenant hereby agrees to attorn to Landlord's successors in interest,
whether such interest is acquired by sale, transfer, foreclosure, deed in lieu
of foreclosure, or otherwise pursuant to the terms and conditions set forth in
Section 22.2 herein. The term "Landlord" as used in this Lease, so far as
covenants and obligations on the part of Landlord are concerned, shall be
limited to mean and include only the owner at the time in question of the fee
title of the Premises. Without further agreement, the transferee of such title
shall be deemed to have assumed and agreed to observe and perform any and all
obligations of Landlord hereunder during its ownership of the Premises.

                          17. DEFAULT AND TERMINATION.

17.1 EVENTS OF DEFAULT. The occurrence of any of the following events (each an
"Event of Default") shall constitute a default by Tenant:

        17.1.1 Failure by Tenant to pay rent within five (5) days of when due.

        17.1.2 Failure by Tenant to perform or comply with any provision of this
Lease (other than as set forth in Subsections 17.1.1, 17.1.4, 17.1.5, 17.1.6,
17.1.7 and 17.1.8) if the failure is not cured within thirty (30) days after
notice has been given to Tenant. If, however, the failure cannot reasonably be
cured within such thirty (30) day cure period, Tenant shall not be in default of
this Lease if Tenant commences to cure the failure within the cure period and
diligently and in good faith continues to cure the failure; provided that if
required by any lender, from time to time, then not more than an additional
ninety (90) days shall elapse before a cure is completed.

        17.1.3 To the extent permitted by law, (i) a general assignment by
Tenant or any guarantor of this Lease for the benefit of creditors, or (ii) the
filing by or against Tenant or any guarantor of any proceeding under any
insolvency or bankruptcy law, unless in the case of a proceeding filed against
Tenant or any guarantor the same is dismissed within sixty (60) days, or (iii)
the appointment of a trustee or receiver to take possession of all or
substantially all of the assets of Tenant or any guarantor, unless possession is
restored to Tenant or such guarantor within (30) days, or (iv) any execution or
other judicially authorized seizure of all or substantially all of Tenant's
assets located upon the Premises or of Tenant's interest in this Lease, unless
such seizure is discharged within thirty (30) days.

        17.1.4 Failure by Tenant to timely deliver any estoppel certificate
pursuant to Section 22.3.

        17.1.5 The vacating of the Club by Tenant without the intention to
reoccupy same, or the abandonment of the Club by Tenant.

        17.1.6 The vacating of a material part of the Office Space by office
subtenants without Tenant's intention, and continuing diligent efforts, to
release the same, or the abandonment of a material part of the Office Space by
Tenant and its office subtenants.

<PAGE>   22

        17.1.7 The discovery by Landlord that any financial statement given to
Landlord by Tenant, any assignee of Tenant, any subtenant of Tenant, any
successor in interest of Tenant or any guarantor was materially false.

        17.1.8 Failure by Tenant to timely deliver any Non-Disturbance Agreement
pursuant to Section 22.1.

        17.1.9 [INTENTIONALLY OMITTED].

        17.1.10 If the performance of Tenant's obligations under this Lease is
guaranteed: (i) the termination of a guarantor's liability with respect to this
Lease other than in accordance with the terms of such guaranty, (ii) a
guarantor's refusal to honor its guaranty, (iii) a guarantor's breach of its
guaranty obligation on an anticipatory breach basis and Tenant's failure, within
sixty (60) days following written notice by or on behalf of Landlord to Tenant
of any such event, to provide Landlord with written alternative assurance or
security, which, when coupled with the then existing resources of Tenant, equal
or exceeds the combined financial resources of Tenant and the guarantor that
existed at the time of execution of this Lease or (iv) the default by any
guarantor under its guaranty, or the attempt by any such guarantor to revoke,
terminate or otherwise limit said guaranty.

17.2 LANDLORD'S REMEDIES. Landlord shall have any one or more of the following
remedies after the occurrence of an Event of Default by Tenant. These remedies
are not exclusive; they are cumulative in addition to any remedies now or later
allowed by law, in equity, or otherwise:

        17.2.1 Terminate this Lease by giving written notice of termination to
Tenant, in which event Tenant immediately shall surrender the Premises to
Landlord. If Tenant fails to so surrender the Premises, then Landlord, without
prejudice to any other remedy it has for possession of the Premises or
arrearages in rent or other damages, may reenter and take possession of the
Premises and expel or remove Tenant and any other person or entity occupying the
Premises or any part thereof, without being liable for any damages, whether
caused by the negligence of Landlord or otherwise. Tenant hereby waives the
protection available under Code of Civil Procedure Sections 1174 and 1179 and
any related sections presently existing or hereinafter enacted. In the event of
any termination of this Lease, Landlord shall have the immediate right to enter
upon and repossess the Premises, and any personal property of Tenant may be
removed from the Premises and stored in any public warehouse at the risk and
expense of Tenant.

        17.2.2 No act by Landlord other than giving notice of termination to
Tenant shall terminate this Lease. Acts of maintenance, efforts to relet the
Premises, or the appointment of a receiver on Landlord's initiative to protect
Landlord's interest under this Lease shall not constitute a termination of this
Lease. On termination of the Lease, Landlord shall have the right to recover
from Tenant:

        17.2.2.1 The worth at the time of the award of the unpaid rent that had
been earned at the time of termination of this Lease; and

        17.2.2.2 The worth at the time of the award of the amount by which the
unpaid rent that would have been earned after the date of termination of this
Lease if the Lease had not been terminated until the time of award exceeds the
amount of the loss of rent that Tenant proves reasonably could have been
avoided; and

        17.2.2.3 The worth at the time of the award of the amount by which the
unpaid rent that would have been earned if the Lease had not been terminated for
the balance of the term after the time of award exceeds the amount of the loss
of rent that Tenant proves reasonably could have been avoided; and

<PAGE>   23

Any other amount, including court costs, necessary to compensate Landlord for
all detriment proximately caused by Tenant's default.

        17.2.2.4 The phrase "worth at the time of the award" as used in clauses
17.2.2.1 and 17.2.2.2 above is to be computed by allowing interest at the rate
of twelve percent (12%) per annum, but not to exceed the then legal rate of
interest. The same phrase as used in clause (iii) above is to be computed by
discounting the amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of the award, plus one percent (1%).

        17.2.3 Landlord may re-enter and take possession of the Premises without
terminating this Lease and without being liable for any damages, whether caused
by the negligence of Landlord or otherwise. Landlord may relet the Premises, or
any part of them, to third parties, but has no obligation to do so. Landlord may
relet the Premises on whatever terms and conditions Landlord, in its reasonable
discretion, deems advisable. Reletting can be for a period shorter or longer
than the remaining term of this Lease. Landlord's action under this Subsection
is not considered an acceptance of Tenant's surrender of the Premises unless
Landlord so notifies Tenant in writing. Tenant shall be immediately liable to
Landlord for all costs Landlord incurs in reletting the Premises, including,
without limitation, brokers' commissions, expenses of remodeling the Premises as
required by the reletting, and like costs. Tenant shall pay to Landlord the rent
due under this Lease on the dates the rent is due, less the rent Landlord
receives from any reletting.

        17.2.3.1 If Landlord elects to relet the Premises without terminating
this Lease, any rent received will be applied to the account of Tenant, not to
exceed Tenant's total indebtedness to Landlord; no reletting by Landlord is
considered to be for its own account unless Landlord has notified Tenant in
writing that the Lease has been terminated. If Landlord elects to relet the
Premises, rent that Landlord receives from reletting will be applied to the
payment of: (i) first, any indebtedness from Tenant to Landlord other than rent
due from Tenant; (ii) second, all costs, including maintenance, incurred by
Landlord in reletting; and (iii) third, rent due and unpaid under the Lease.
After deducting the payments referred to in this Subsection, any sum remaining
from the rent Landlord receives from reletting will be held by Landlord and
applied in payment of future rent as rent becomes due under this Lease. If, on
the date rent is due under this Lease, the rent received from the reletting is
less than the rent due on that date, Tenant will pay to Landlord, in addition to
the remaining rent due, all costs, including maintenance, Landlord incurred in
reletting which remain after applying the rent received from the reletting.
Tenant shall have no right to or interest in the rent or other consideration
received by Landlord from reletting to the extent it exceeds Tenant's total
indebtedness to Landlord.

        17.2.3.2 The purpose of this Section 17.2.3 is to give Landlord the
remedy described in California Civil Code Section 1951.4 (lessor may continue
lease in effect after lessee's breach and abandonment and recover rent as it
becomes due, if lessee has right to sublet or assign, subject only to reasonable
limitations); it being agreed that the restrictions imposed by this Lease on
Tenant's right to sublet or assign are reasonable.

        17.2.4 Re-enter the Premises without terminating this Lease and without
being liable for any damages, whether caused by the negligence of Landlord or
otherwise, and do whatever Tenant is obligated to do under the terms of this
Lease. The expenses incurred by Landlord in affecting compliance with Tenant's
obligations under this Lease immediately shall become due and payable to
Landlord as additional rent.

<PAGE>   24

        17.2.5 In all events, Tenant is liable for all damages of whatever kind
or nature, direct or indirect, suffered by Landlord as a result of the
occurrence of an Event of Default. If Tenant fails to pay Landlord in a prompt
manner for the damages suffered, Landlord may pursue a monetary recovery from
Tenant. Included among these damages are all expenses incurred by Landlord in
repossessing the Premises (including, but not limited to, increased insurance
premiums resulting from Tenant's vacancy), all expenses incurred by Landlord in
reletting the Premises (including, but not limited to, those incurred for
advertisements, brokerage fees, repairs, remodeling to the Premises, and
replacements), all concessions granted to a new tenant on a reletting, all
losses incurred by Landlord as a result of Tenant's default (including, but not
limited to, any unamortized commissions paid in connection with this Lease), a
reasonable allowance for Landlord's administrative costs attributable to
Tenant's default, and all reasonable attorneys, fees incurred by Landlord in
enforcing any of Landlord's rights or remedies against Tenant.

        17.2.6 Pursuit of any of the foregoing remedies does not constitute an
irrevocable election of remedies nor preclude pursuit of any other remedy
provided elsewhere in this Lease or by applicable law, and none is exclusive of
another unless so provided in this Lease or by applicable law. Likewise,
forbearance by Landlord to enforce one or more of the remedies available to it
on an Event of Default does not constitute a waiver of that default or of the
right to exercise that remedy later or of any rent, damages, or other amounts
due to Landlord hereunder.

        17.2.7 Whether or not Landlord elects to terminate this Lease or
Tenant's right to possession of the Premises on account of any default by
Tenant, Landlord shall have all rights and remedies at law or in equity,
including, but not limited to, the right to re-enter the Premises and, to the
maximum extent provided by law, Landlord shall have the right to terminate any
and all subleases, licenses, concessions, or other consensual arrangements for
possession entered into by Tenant and affecting the Premises or, in Landlord's
sole discretion, may succeed to Tenant's interest in such subleases, licenses,
concessions, or arrangements. In the event of Landlord's election to succeed to
Tenant's interest in any such subleases, licenses, concessions, or arrangements,
Tenant shall have no further right to or interest in the rent or other
consideration receivable thereunder as of the date of notice by Landlord of such
election.

17.3 LATE CHARGE. If Tenant fails to pay when due any payment of rent or other
charges which Tenant is obligated to pay to Landlord under this Lease, there
shall be a late charge in the amount of (a) five percent (5%) or (b) if higher,
such higher amount, from time to time, as may apply to any late payment under
any loan secured by the Premises, of each such obligation. This sum is intended
to compensate for accounting and administrative expenses incurred, as well as
the loss of the use of funds. In addition to the late charge, any and all rent
or other charges which Tenant is obligated to pay to Landlord under this Lease
which are unpaid shall bear interest at the rate set forth in Section 17.5 from
the date said payment was due until paid.

17.4 SURRENDER OF PREMISES. No act or thing done by Landlord or any agent or
employee of Landlord during the Lease term shall be deemed to constitute an
acceptance by Landlord or a surrender of Premises unless such intent is
specifically acknowledged in a writing signed by Landlord. The delivery of keys
to the Premises to Landlord or any agent or employee of Landlord shall not
constitute a surrender of the Premises or effect a termination of this Lease,
whether or not the keys are thereafter retained by Landlord and, notwithstanding
such delivery, Tenant shall be entitled to the return of such keys at any
reasonable time upon request until this Lease shall have been terminated
properly. The voluntary or other surrender of this Lease by Tenant, whether
accepted by Landlord or not, or a mutual termination hereof, shall not work a
merger, and at the option of Landlord shall operate as an assignment to Landlord
of all subleases or subtenancies affecting the Premises.

17.5 INTEREST CHARGES. Any amount not paid by one party to the other when due to
the other party will bear interest from the date due at the lower of (i) the
default rate of interest under any loan secured, in

<PAGE>   25

whole or in part, by the Premises, or any part thereof, or, if there shall be no
such loan, then the prime commercial rate being charged by the Bank of America
N.A. in effect on the date due plus two percent (2%) per annum; and (ii) the
maximum rate permitted by law. If Bank of America N.A. is no longer in
existence, then another comparable bank or financial institution shall be
substituted by Landlord.

17.6 DEFAULT BY LANDLORD. Landlord shall be in default if Landlord fails to
perform any provision of this Lease required of it and the failure is not cured
within thirty (30) days after notice has been given to Landlord. If, however,
the failure cannot reasonably be cured within such thirty (30) day cure period,
Landlord shall not be in default of this Lease if Landlord commences to cure the
failure within the cure period and diligently and in good faith continues to
cure the failure. Notices given under this Section 17.6 shall specify the
alleged breach and the applicable Lease provisions and shall, in order to be
valid, be given concurrently to any lender holding a mortgage, deed of trust or
other security interest in the Premises. If Landlord has failed to cure a
default within the required period, such lender shall have an additional thirty
(30) days within which to cure the same or, if such default cannot be cured
within that period, such additional time as may be necessary if within such
thirty (30) day period said lender has commenced and is diligently pursuing the
actions or remedies necessary to cure the breach, default, or noncompliance
involved (including, but not limited to, commencement and prosecution of
proceedings to foreclose or otherwise exercise its rights under its mortgage or
other security instrument, if necessary to effect such cure), in which event
this Lease shall not be terminated by Tenant so long as such actions or remedies
are being diligently pursued by said lender.

17.7 IMPOUNDS. If a late charge is payable hereunder, whether or not collected,
for three (3) consecutive installments of rent or for three (3) consecutive
installments of other monetary obligations of Tenant under the terms of this
Lease, then Tenant shall pay to Landlord, if Landlord shall so request and if no
lender is then requiring any such impounds, in addition to any other payments
required under this Lease, a monthly advance installment (as estimated by
Landlord) payable at the same time as the monthly rents for real property tax
and insurance expenses on the Premises which are payable by Tenant under the
terms of this Lease. Such fund shall be established to insure payment when due,
before delinquency, of any or all such real property taxes and insurance
premiums. If the amounts paid to Landlord by Tenant under the provisions of this
paragraph are insufficient to discharge the obligations of Tenant to pay such
real property taxes and insurance premiums as the same become due, then Tenant
shall pay to Landlord, upon Landlord's demand, such additional sums necessary to
pay such obligations. All moneys paid to Landlord under this paragraph may be
intermingled with other moneys of Landlord and shall not bear interest for the
benefit of Tenant. If Tenant defaults in the performance of Tenant's obligations
under this Lease, then any balance remaining from funds paid to Landlord under
the provisions of this paragraph may, at the option of Landlord, be applied to
the payment of any monetary default of Tenant in lieu of being applied to the
payment of real property tax and insurance premiums.

18. RIGHT OF INSPECTION. Landlord, Landlord's lender(s) and any authorized
representatives thereof shall have the right after seventy-two (72) hours prior
written notice to Tenant, except in the event of an emergency in which case no
notice is required, to enter upon the Premises from time to time and at all
reasonable hours for the purpose of inspecting the Premises, making repairs,
additions, or alterations in or upon the Premises or exhibiting the Premises to
prospective tenants, purchasers, lenders or others. Provided Tenant is not in
default beyond any applicable cure period, Landlord shall not exhibit any "for
sale", "for rent" or like signs, except pending the cure of any default or
during the final one hundred eighty (180) days of the term of the Lease.

19. WAIVER OF BREACH. No waiver by Landlord of any breach of any one or more of
the terms, covenants, conditions, or agreements of this Lease shall be deemed to
imply or constitute a waiver of any succeeding or other breach. Failure of
Landlord to insist upon the strict performance of any of the terms, conditions,
covenants, and agreements of this Lease shall not constitute or be considered as
a waiver or

<PAGE>   26

relinquishment of Landlord's rights to subsequently enforce any default, term,
condition, covenant, or agreement, which shall all continue in full force and
effect. The rights and remedies of Landlord under this Lease shall be cumulative
and in addition to any and all other rights and remedies which Landlord has or
may have.

                                  20. NOTICES.

20.1 NOTICE REQUIREMENTS. All notices, requests, or demands herein provided to
be given or made, or which may be given or made by either party to the other,
shall be given or made only in writing and shall be deemed to have been duly
given: (i) when delivered personally at the address set forth below, or to any
registered agent of the party to whom notice is being given; or (ii) on the date
delivered when sent via Overnight Mail or reputable overnight delivery service
such as, without limitation, Federal Express, properly addressed and postage
prepaid with proof of delivery; or (iii) on the date sent via facsimile
transmission with a concurrent copy being sent by another approved means
hereunder; or (iv) seventy-two (72) hours after the time the same is deposited
in the United States mail, properly addressed and first class postage prepaid,
return receipt requested. The proper address to which notices, requests, or
demands may be given or made by either party shall be the address set forth at
the end of this Section or to such other address or to such other person as any
party shall designate such address may be changed by written notice given to the
other party in accordance with this Section.

          If to Tenant:      The Spectrum Club Company, Inc.
                             Attn:  Real Estate Notices
                             11100 Santa Monica Boulevard, Suite 300
                             West Los Angeles, California  90025
                             Phone number:  (310) 479-5200
                             Fax number:  (310) 479-4350

          If to Landlord:    West Hollywood Property Limited Partnership
                             1990 Westwood Boulevard, 3rd Floor
                             Los Angeles, California  90025
                             Attention:  Les E. Lederer
                             Phone number: 310/470-6380
                             Fax number:  310/474-0470

                                      -and-

                             2400 Willow Lane Associates Limited Partnership
                             11100 Santa Monica, Suite 300
                             Los Angeles, California 90025
                             Attention:  Michael Talla
                             Phone number:  310/479-5200
                             Fax number:  310/479-4350

20.2 PAYMENTS UNDER LEASE. Rent and all other payments due to Landlord under
this Lease shall be paid in lawful money of the United States of America without
offset or deduction to the name and at the address first given above or to such
other persons or parties or at such other places as Landlord may from time to
time designate in writing.

21. RELATIONSHIP OF THE PARTIES. This Lease shall not be deemed or construed by
the parties, nor by any third party, as creating the relationship of (i)
principal and agent, (ii) partnership, or

<PAGE>   27

(iii) joint venture between the parties. Neither the method of computation of
rent nor any other provision of this Lease, nor any acts of the parties are
other than in the relationship of Landlord and Tenant.

           22. SUBORDINATION, NON-DISTURBANCE ATTORNMENT AND ESTOPPEL.

22.1 SUBORDINATION AND NON-DISTURBANCE. Subject to the provisions of this
Section, this Lease and the leasehold estate created hereby shall be, at the
option and upon written declaration of Landlord, subject, subordinate, and
inferior to the lien and estate of any liens, trust deeds, and encumbrances
("Mortgages"), and all renewals, extensions, or replacements thereof, now or
hereafter imposed by Landlord upon the Premises; provided, however, that this
Lease shall not be subordinate to any Mortgage arising after the date of this
Lease, or any renewal, extension, or replacement thereof, unless and until
Landlord provides Tenant with an agreement ("Non-Disturbance Agreement"), signed
and acknowledged by each holder of any such interest, setting forth that, so
long as Tenant is not in default hereunder, Landlord's and Tenant's rights and
obligations hereunder shall remain in force and Tenant's right to possession
shall be upheld. If any mortgagee, trustee or ground lessor shall elect to
subordinate the lien of its mortgage, deed of trust or ground lease to this
Lease, and shall give written notice thereof to Tenant, then this Lease shall be
deemed prior to such mortgage, deed of trust, or ground lease whether this Lease
is dated prior or subsequent to the date of said mortgage, deed of trust or
ground lease or the date of recording thereof. The Non-Disturbance Agreement may
contain such additional provisions regarding nondisturbance, subordination and
attornment as are customarily requested by secured lenders with liens
encumbering real property security similar to the Premises. Tenant shall, within
ten (10) days following a request by Landlord, execute, acknowledge and deliver
the Non-Disturbance Agreement, and any other subordination agreement or other
documents required to establish of record the priority of any such encumbrance
over this Lease. Tenant's failure to execute such documents within ten (10) days
after written demand shall constitute an Event of Default by Tenant hereunder,
or, at Landlord's option, Landlord shall execute such documents on behalf of
Tenant as Tenant's attorney-in-fact. Tenant does hereby make, constitute and
irrevocably appoint Landlord as Tenant's attorney-in-fact and in Tenant's name,
place and stead, to execute such documents in accordance with this Section. In
addition, as long as they do not materially increase Tenant's monetary
obligations or materially diminish Tenant's rights hereunder, Tenant agrees to
make such modifications to this Lease as may be required by a lender not
affiliated with Landlord in connection with the obtaining of financing or
refinancing of the Premises. In addition, even if any such modification did
materially increase Tenant's monetary obligations or materially diminish
Tenant's rights hereunder, Tenant nonetheless still shall make such modification
if (i) it is a reasonable modification for such lender to require under the
circumstances and (ii) Landlord, in its sole discretion, elects, as between
Landlord and Tenant, to bear any increased costs resulting from such
modification that otherwise would be borne by Tenant.

22.2 ATTORNMENT. In the event of foreclosure of any Mortgage, whether superior
or subordinate to this Lease, then (i) this Lease shall continue in force; (ii)
Tenant's quiet possession shall not be disturbed unless this Lease is otherwise
terminated pursuant to its terms; (iii) Tenant shall attorn to and recognize the
mortgagee or purchaser at foreclosure sale ("Successor Landlord") as Tenant's
landlord for the remaining term of this Lease; and (iv) the Successor Landlord
shall not be bound by (a) any security deposit or payment of rent for more than
one month in advance; (b) any amendment, modification, or ending of this Lease
without the Successor Landlord's consent after the Successor Landlord's name is
given to Tenant pursuant to the notice requirements set forth in Section 20.1
herein, unless the amendment, modification, or ending is specifically authorized
by the original Lease and does not require Landlord's prior agreement or
consent; and (c) any liability for any act or omission of a prior Landlord.

22.3 TENANT'S ESTOPPEL CERTIFICATE. Tenant shall execute and deliver to
Landlord, from time to time and within ten (10) days after receipt of Landlord's
request, any estoppel certificate or other statement to be furnished to any
prospective purchaser of or any lender against the Premises. Such estoppel
certificate shall acknowledge and certify, without limitation, each of the
following matters, to the extent each may

<PAGE>   28

be true: that this Lease is in effect and not subject to any rental offsets,
claims, or defenses to its enforcement; the commencement and termination dates
of the term; that Tenant is paying rent on a current basis; that any
improvements required to be furnished under the Lease have been completed in all
respects; that the Lease constitutes the entire agreement between Tenant and
Landlord relating to the Premises; that Tenant has accepted the Premises and is
in possession thereof; that the Lease has not been modified, altered, or amended
except in specified respects by specified instruments; and that Tenant has no
notice of any prior assignment, hypothecation, or pledge of rents or the Lease.
Tenant shall also, upon request of Landlord, certify and agree for the benefit
of any lender against the Premises that Tenant will not look to such lender: as
being liable for any act or omission of Landlord; as being obligated to cure any
defaults of Landlord under the Lease which occurred prior to the time such
lender, its successors or assigns, acquired Landlord's interest in the Premises
by foreclosure or otherwise; as being bound by any payment of rent or additional
rent by Tenant to Landlord for more than one (1) month in advance; as being
bound by Landlord to any amendment or modification of the Lease without such
lender's written consent; or as being obligated to return any security deposit.

        22.3.1 If Tenant does not deliver such estoppel certificate or statement
to Landlord within such ten (10) day period, in addition to the remedies of
Landlord under Section 17.2, Landlord, and any prospective purchaser or
encumbrancer, may conclusively presume and rely upon the following facts: (i)
that the terms and conditions of this Lease have not been changed except as
otherwise represented by Landlord; (ii) that this Lease has not been cancelled
or terminated except as otherwise represented by Landlord; (iii) that not more
than one month's Base Monthly Rent or other charges have been paid in advance;
(iv) that Landlord is not in default under this Lease and (v) the security
deposit has not been increased from the amount stated in Section 7. In such
event, Tenant shall be estopped from denying the truth of such facts. In
addition, Tenant shall be liable for any consequential damages suffered by
Landlord as a result of the Event of Default described in Section 17.1.4.

23. TENANT'S FINANCIAL STATEMENTS. From time to time during the term of the
Lease and within ten (10) days of any request by Landlord, Tenant shall provide
Landlord with Tenant's current and past three (3) years profit and loss
statements, balance sheet, statement of changes in financial position, and notes
to the financial statements both for Tenant's operations as a whole and for the
operations of the Premises (and each component thereof) separately, in each
case, either audited by an independent certified public accountant or accounting
firm or certified by Tenant's Chief Financial Officer.

                              24. ATTORNEYS' FEES.

24.1 RECOVERY OF ATTORNEYS' FEES AND COSTS OF SUIT. Tenant shall reimburse
Landlord, upon demand, for any costs or expenses incurred by Landlord in
connection with any breach or default under this Lease, whether or not suit is
commenced or judgment entered. Such costs shall include legal fees and costs
incurred for the negotiation of a settlement, enforcement of rights, or
otherwise. Furthermore, if any action for breach of or to enforce the provisions
of this Lease is commenced, the court in such action shall award to the party in
whose favor a judgment is entered, a reasonable sum as attorneys' fees and
costs. Such attorneys' fees and costs shall be paid by the losing party in such
action.

24.2 PARTY TO LITIGATION SUBJECT TO SECTION 24.1. Subject to Section 24.1,
Tenant shall indemnify Landlord against and hold Landlord harmless from all
costs, expenses, demands, and liability incurred by Landlord if Landlord becomes
or is made a party to any claim or action (i) instituted by Tenant, or by any
third party against Tenant, or by or against any person holding any interest
under or using the Premises by license of or agreement with Tenant; (ii) for
foreclosure of any lien for labor or material furnished to or for Tenant or such
other person; (iii) otherwise arising out of or resulting from any action or
transaction of Tenant or such other person; or (iv) necessary to protect
Landlord's interest under this Lease in a bankruptcy proceeding, or other
proceeding under Title 11 of the United States Code, as amended. Tenant shall
defend Landlord against any such claim or action at Tenant's expense with
counsel

<PAGE>   29

reasonably acceptable to Landlord or, at Landlord's election, Tenant shall
reimburse Landlord for any legal fees or costs incurred by Landlord in any such
claim or action.

24.3 LANDLORD'S CONSENT. Tenant shall pay Landlord's reasonable attorneys', fees
and other costs incurred in connection with Tenant's request for Landlord's
consent under Section 16, "Assignment and Subletting," or in connection with any
other act which Tenant proposes to do and which requires Landlord's consent.
Landlord may request a deposit from Tenant toward the payment of such reasonable
attorneys' fees and expenses as a condition precedent to considering any such
request, and such deposit shall apply against (but not limit) the amount payable
by Tenant for such attorneys' fees and expenses. Landlord shall have no
liability for damages resulting from Landlord's failure to give any consent,
approval, or instruction reserved to Landlord. Tenant's sole remedy in any such
event shall be an action for declaratory relief.

                             25. HAZARDOUS MATERIAL.

25.1 ENVIRONMENTAL COMPLIANCE. Tenant shall not cause or permit any Hazardous
Material to be brought upon, or used in or about the Premises by Tenant, its
agents, employees, contractors, or invitees, without the prior written consent
of Landlord (which Landlord shall not unreasonably withhold as long as Tenant
demonstrates to Landlord's reasonable satisfaction that such Hazardous Material
is necessary or useful to Tenant's business and will be used, kept, and stored
in a manner that complies with all laws relating to such Hazardous Material). If
Tenant breaches the obligations stated in the preceding sentence, if the
presence of Hazardous Material on the Premises caused or permitted by Tenant
results in contamination of the Premises, or if contamination of the Premises by
Hazardous Material otherwise exists or occurs and Landlord is not responsible
for the contamination, then Tenant shall indemnify, defend, and hold Landlord
harmless from any and all claims, judgments, damages, penalties, fines, costs,
liabilities, or losses (including, without limitation, diminution in value of
the Premises, damages for the loss or restriction on use of rentable or usable
space or of any amenity of the Premises, damages arising from any adverse impact
on marketing of space of the Premises, and sums paid in settlement of claims,
attorneys' fees, consultation fees, and expert fees) which arise during or after
the term of the Lease as a result of such contamination. This indemnification of
Landlord by Tenant includes, without limitation, costs incurred in connection
with any investigation or site conditions or any cleanup, remedial, removal, or
restoration work required by any federal, state, or local governmental agency or
political subdivision because of Hazardous Material present in the soil or
ground water on or under the Premises. Without limiting the foregoing, if the
presence of any Hazardous Material on the Premises caused or permitted by Tenant
results in any contamination of the Premises, Tenant shall promptly take all
actions at its sole expense as are recommended by environmental engineers hired
by Tenant and are necessary to return the Premises to the condition existing
prior to the introduction of any such Hazardous Material to the Premises;
provided that Landlord's approval of such actions shall first be obtained, which
approval shall not be unreasonably withheld so long as such actions would not
potentially have any material adverse long-term or short-term effect on the
Premises.

25.2 TENANT RESPONSIBLE FOR HAZARDOUS MATERIALS. Landlord and Tenant acknowledge
that Landlord may become legally liable for the costs of complying with
Environmental Laws relating to Hazardous Material which are not the
responsibility of Landlord or the responsibility of Tenant including, without
limitation, the following: (i) a change in Environmental Laws which relate to
Hazardous Material which make Hazardous Material present on the Premises as of
the Commencement Date, whether known or unknown to Landlord, a violation of such
new Environmental Laws; (ii) Hazardous Material that migrates, flows,
percolates, diffuses, or in any way moves on to or under the Premises before or
after the Commencement Date; (iii) Hazardous Material present or under the
Premises as a result of any discharge, dumping, or spilling (whether accidental
or otherwise) on the Premises by other tenants of the Premises or their agents,
employees, contractors, or invitees, or by others before or after the
Commencement Date; or (iv) any Hazardous Material present in, on, under or about
the Premises, including, without limitation, in

<PAGE>   30

the soil or ground water, before or after the Commencement Date. Accordingly,
Landlord and Tenant agree that the cost of complying with Environmental Laws
relating to Hazardous Material on the Premises for which Landlord is legally
liable during the term of the Lease shall be the responsibility and shall be
paid by Tenant. To the extent any such expense relating to Hazardous Material is
subsequently recovered or reimbursed through insurance, or recovery from
responsible third parties, or other action, Tenant shall be entitled to a
reimbursement to the extent it has paid the maintenance expense to which such
recovery or reimbursement relates.

25.3 LANDLORD NOT RESPONSIBLE FOR HAZARDOUS MATERIALS. As between Landlord and
Tenant, and notwithstanding anything to the contrary that may otherwise be
contained in the Lease, Landlord shall not be responsible for complying with any
Environmental Laws as regards any Hazardous Material in, on, under or about the
Premises of whatever type and wherever, whenever or however occurring, and
Tenant shall be solely responsible therefor.

25.4 SURVIVAL. The provisions of this Section 25 shall survive termination of
this Lease.

                                 26. GUARANTOR.

26.1 The effectiveness of this Lease is further conditioned upon the concurrent
delivery to Landlord by Tenant of a guaranty, in form and substance identical to
that attached as Exhibit E, originally executed by The Sports Club Company,
Inc., with such guarantor's signature having been notarized.

26.2 It shall constitute an Event of Default of the Tenant under this Lease if
any such guarantor fails or refuses, upon reasonable request by Landlord, to
give any or all of the following: (a) evidence of the due execution of the
guaranty called for by this Lease, including the authority of the guarantor (and
of the party signing on guarantor's behalf) to obligate such guarantor on said
guaranty, and including in the case of corporate guarantor, a certified copy of
a resolution of its board of directors authorizing the making of such guaranty,
together with a certificate of incumbency showing the signature of the persons
authorized to sign on its behalf, (b) current financial statements of guarantor
as may from time to time be requested by Landlord, (c) an estoppel certificate,
or (d) written confirmation that the guaranty is still in effect.

27. RESERVATIONS. Landlord reserves to itself the right, from time to time, to
grant, without the consent or joinder of Tenant, such easements, rights and
dedications that Landlord deems necessary, and to cause the recordation of
parcel maps and restrictions, so long as such easements, rights, dedications,
maps and restrictions do not unreasonably interfere with the use of the Premises
by Tenant. Tenant agrees to sign any documents reasonably requested by Landlord
to effectuate any such easement rights, dedication, map or restrictions.

                             28. GENERAL PROVISIONS.

28.1 FULL POWER AND AUTHORITY TO ENTER LEASE. Each of the parties, and each
individual signing on behalf of such party, covenants, represents and warrants
to the other party that such party, and such individual, has full power and
authority to enter into this Lease.

28.2 GENDER; NUMBER; CONSTRUCTION. The use of (i) the neuter gender includes the
masculine and feminine and (ii) the singular number includes the plural,
whenever the context requires. This Lease shall be construed neutrally and not
against the drafter

28.3 CAPTIONS. Captions in this Lease are inserted for the convenience of
reference only and do not define, describe, or limit the scope or the intent of
this Lease or any of its terms.

28.4 EXHIBITS. All attached exhibits are a part of this Lease and are
incorporated in full by this reference.

28.5 ENTIRE AGREEMENT. This Lease contains the entire agreement between the
parties relating to the transactions contemplated hereby and all prior or
contemporaneous agreements, understandings, drafts, representations and
statements, oral or written, are merged into this Lease.

<PAGE>   31

28.6 MODIFICATION. No modification, waiver, amendment, discharge, or change of
this Lease (collectively, a "Modification") shall be valid unless it is in
writing and signed by the party against which the enforcement of the
modification, waiver, amendment, discharge, or change is or may be sought. It
shall be a condition precedent to the effectiveness of any Modification that
Tenant deliver to Landlord a reaffirmation of any guaranty of this Lease,
acceptable to Landlord in its sole discretion, consenting to such Modification.

28.7 JOINT AND SEVERAL LIABILITY. If any party consists of more than one person
or entity, the liability of each such person or entity signing this Lease shall
be joint and several.

28.8 GOVERNING LAW. This Lease shall be construed and enforced in accordance
with the laws of the state of California.

28.9 TIME OF ESSENCE. Time is of the essence of every provision of this Lease.

28.10 SEVERABILITY. In the event any term, covenant, condition, or provision of
this Lease is held to be invalid, void, or otherwise unenforceable by any court
of competent jurisdiction, the fact that such term, covenant, condition, or
provision is invalid, void, or otherwise unenforceable shall in no way affect
the validity or enforceability of any other term, covenant, condition, or
provision of this Lease.

28.11 SUCCESSORS AND ASSIGNS. Except as otherwise provided herein, all terms of
this Lease shall be binding upon, inure to the benefit of, and be enforceable by
the parties and their respective legal representatives, successors, and assigns.

28.12 INDEPENDENT COVENANTS. This Lease shall be construed as though the
covenants herein between Landlord and Tenant are independent and not dependent,
and Tenant hereby expressly waives the benefit of any statute to the contrary
and agrees that if Landlord fails to perform its obligations set forth herein,
Tenant shall not be entitled to make any repairs or perform any acts hereunder
at Landlord's expense or to any offset of the rent or other amounts owing
hereunder against Landlord; provided, however, the foregoing shall in no way
impair the right of Tenant to commence a separate action against Landlord for
any violation by Landlord of the provisions hereof so long as notice is first
given to Landlord and any holder of a mortgage or deed of trust covering the
Premises (of whose address Tenant has theretofore been notified) and an
opportunity is granted to Landlord and such holder to correct such violation as
provided above.

28.13 NO VIOLATION OF COVENANTS AND RESTRICTIONS. Tenant shall not violate or
cause Landlord to violate any recorded covenants and restrictions affecting the
Premises. Tenant shall defend, indemnify, and hold harmless Landlord from any
costs or expenses incurred from such a violation.

28.14 MERGER. The voluntary or other surrender of this Lease by Tenant, or a
mutual cancellation thereof, or a termination by Landlord shall not work a
merger, and shall, at the option of Landlord, terminate all or any existing
subtenancies or may, at the option of Landlord and as set forth in Section
16.1.2, operate as an assignment to Landlord of any or all of such subtenancies.
Tenant's acquisition of Landlord's interest in this Lease shall also not work a
merger.

28.15 SECURITY MEASURES. Tenant hereby acknowledges that the rent payable to
Landlord hereunder does not include the cost of guard services or other security
measures, and that Landlord shall have no obligation whatsoever to provide same.
Tenant assumes all responsibility for the protection of Tenant's property and
property under Tenant's control, and for the protection of Tenant and its
principals, employees, agents, licensees, invitees and subtenants (and their
respective principals, employees, agents, licensees and invitees) from any acts
of third parties.

28.16 INFORMATION PROVIDED. Tenant warrants and represents that all information
Tenant has provided to Landlord is to the best of Tenant's knowledge accurate
and correct and Tenant acknowledges that Landlord has relied upon such
information in entering into this Lease.

28.17 SURVIVAL OF OBLIGATIONS. All obligations of Tenant which either (a) by
their nature arise on or after the expiration or earlier termination of this
Lease, or (b) have not been satisfied on or before the expiration or earlier
termination of this Lease shall survive any expiration or earlier termination of
this Lease.

<PAGE>   32

28.18 LANDLORD'S LIABILITY. The term "Landlord" as used herein shall mean only
the owner or owners at the time in question of the fee title or a lessee's
interest in a ground lease of the Premises, and if any transfer of such title or
interest occurs, then Landlord herein named (and, in case of any subsequent
transfers, then each grantor thereof) shall be relieved from and after the date
of such transfer of all liability relating to Landlord's obligations thereafter
to be performed, provided that any funds in the hands of Landlord (or the
then-grantor at the time of such transfer) in which Tenant has an interest shall
be delivered to the grantee. The obligations contained in this Lease to be
performed by Landlord shall, subject as aforesaid, be binding on Landlord's
successors and assigns only during their respective periods of ownership.
Notwithstanding anything in this Lease to the contrary, Landlord shall have no
personal liability under any provision of this Lease, Tenant hereby agreeing to
look solely to Landlord's estate in the Premises for recourse and/or recovery
for any claim, damage, liability, or other amount arising under, relating to, or
in connection with Tenant's occupancy of and/or tenancy in the Premises; it
being further agreed that, for this purpose, the Premises shall be deemed
encumbered by a loan having a loan-to-value ratio of 70% if the Premises is
unencumbered or encumbered by a loan having a lesser loan-to-value ratio at the
time the determination of the Landlord's estate in the Premises is to be made.

28.19 HOLDING OVER. If Tenant, but only with Landlord's consent (which consent
may be withheld in Landlord's sole discretion), remains in possession of the
Premises or any part thereof after the expiration of the term hereof, then such
occupancy shall be a tenancy from month to month upon all the provisions of this
Lease pertaining to the obligations of Tenant, except at a Monthly Base Rent
equal to one hundred fifty percent (150%) of the sum of the Monthly Base Rent
otherwise due under Section 4, immediately prior to the expiration of the term
hereof, but all options and rights of first refusal, if any, granted under the
terms of this Lease shall be deemed terminated and be of no further effect
during said month to month tenancy. The foregoing provisions are in addition to
and do not affect Landlord's right of re-entry or any other rights or remedies
of Landlord hereunder or as otherwise provided at law or in equity, or both.
Tenant shall indemnify, defend and hold Landlord harmless from and against any
and all losses, costs, damages and liabilities (including attorneys' fees and
costs, and court costs) arising out of or in connection with any delay by Tenant
in surrendering and vacating the Premises, including, without limitation, any
claims made by any succeeding tenant based on any delay and any liabilities
arising out of or in connection with these claims, and Landlord's damages should
any such succeeding tenant cancel its lease based upon such holding over by
Tenant. Nothing in this Section shall be deemed to permit Tenant to retain
possession of the Premises after the expiration or sooner termination of the
term.

28.20 ARTWORK. To ensure compliance with California laws regarding rights of
artists, Tenant will not install any artwork of any nature in the Premises which
cannot be removed without damage or destruction to the artwork.

28.21 FURTHER ASSURANCES. Tenant shall, from time to time upon Landlord's
request, and at Tenant's expense, promptly execute, acknowledge and deliver any
and all such certifications, documents and writings, and otherwise promptly take
any and all such further actions, as Landlord, in good faith, may require to
effectuate the intents and purposes of this Lease.

28.22   SALE/LEASEBACK, FINANCING AND REFINANCING. Concurrently with this Lease
        becoming effective, Landlord is purchasing the Premises from Tenant and
        thereafter leasing the Premises back to Tenant pursuant to this Lease
        (the "Sale/Leaseback"). In order to finance the Sale/Leaseback, Landlord
        is pledging its interest in the Premises and this Lease to a lender,
        which lender will be providing Landlord with a portion of the funds
        being used by Landlord to acquire the Premises from Tenant (the "Initial
        Financing"). From time to time hereafter, Landlord may refinance the
        Premises, in which case Landlord would, again, pledge the Premises and
        its interest in this Lease to secure any such refinancing (the Initial
        Financing and any such subsequent refinancing, a "Financing"). Landlord
        and one or more of its principals, directly or indirectly, are incurring
        and, most likely, will incur, either directly or indirectly, certain
        liabilities, both actual and contingent, in connection with the Initial
        Financing and any subsequent Financing, including, without

<PAGE>   33

        limitation, pursuant to one or more personal guaranties of, without
        limitation, certain so-called "recourse carve-outs" and environmental
        matters (collectively, "Financing Liabilities"); it being agreed,
        however, that the definition of Financing Liabilities, for the purposes
        of this paragraph only, shall not include any such liabilities to the
        extent such liabilities (a) arise out of the willful misconduct of
        Landlord or its affiliates or (b) exceed, in the case of a Financing
        subsequent to the Initial Financing, the scope of the Financing
        Liabilities under the Initial Financing. Tenant desires that Landlord
        enter into the Sale/Leaseback, the Initial Financing and any subsequent
        Refinancing and will be benefited by each thereof. As a material part of
        the consideration to Landlord for entering into this Lease, but for
        which Landlord would not have entered into the Sales/Leaseback and
        Initial Financing, Tenant agrees to indemnify, defend and hold each of
        Landlord and its affiliates harmless from and against any and all
        claims, costs, damages and liabilities in any way arising out of or in
        connection with any Financing Liabilities.

28.23 CIVIL CODE SECTION 1812.97 WARNING. WARNING: USE OF STEROIDS TO INCREASE
STRENGTH OR GROWTH CAN CAUSE SERIOUS HEALTH PROBLEMS. STEROIDS CAN KEEP
TEENAGERS FROM GROWING TO THEIR FULL HEIGHT; THEY CAN ALSO CAUSE HEART DISEASE,
STROKE AND DAMAGED LIVER FUNCTION. MEN AND WOMEN USING STEROIDS MAY DEVELOP
FERTILITY PROBLEMS, PERSONALITY CHANGES, AND ACNE. MEN CAN ALSO EXPERIENCE
PREMATURE BALDING AND DEVELOPMENT OF BREAST TISSUE. THESE HEALTH HAZARDS ARE IN
ADDITION TO THE CIVIL AND CRIMINAL PENALTIES FOR UNAUTHORIZED SALE, USE, OR
EXCHANGE OF ANABOLIC STEROIDS.

<PAGE>   34

<TABLE>
<CAPTION>
TENANT:                                               LANDLORD:
<S>                                                   <C>
The Spectrum Club Company, Inc.,                      West Hollywood Property Limited Partnership,
a California corporation                              a California limited partnership

By: /s/ John Gibbons                                  By: W H Property GP Corp., Inc.
    --------------------------------------
    John Gibbons, its chief executive officer         Its general partner

                                                      By: /s/ Les Lederer
                                                          ------------------------------------
                                                          Les Lederer, its president

                                                                          -and-

                                                      2400 Willow lane Associates Limited Partnership,
                                                      a California limited partnership

                                                      By: 2400 Willow Lane GP Corp., Inc.,
                                                          Its general partner

                                                      By:  /s/ Michael Talla
                                                           ----------------------------------
                                                           Michael Talla, its president
</TABLE><PAGE>   1

                                  EXHIBIT 10.70

       Athletic Club Lease dated as of November 5, 1999 by and a between
          New Commonwealth Center Limited Partnership (as Landlord) and
                  Washington D.C. Sports Club, Inc. (as Tenant)

<PAGE>   2

                               ATHLETIC CLUB LEASE

                                     BETWEEN

                  NEW COMMONWEALTH CENTER LIMITED PARTNERSHIP,

                                    LANDLORD,

                                       AND

                       WASHINGTON D.C. SPORTS CLUB, INC.,

                                     TENANT.

                          DATED: AS OF NOVEMBER 5, 1999

                           FOR PREMISES IN A BUILDING
                              TO BE CONSTRUCTED ON
                            THE CITY BLOCK BOUNDED BY
                           AVERY, WASHINGTON, TREMONT
                              AND BOYLSTON STREETS,
                              BOSTON, MASSACHUSETTS

<PAGE>   3

                               ATHLETIC CLUB LEASE

        THIS LEASE (this "LEASE") is made as of the 5th day of November, 1999,
by and between NEW COMMONWEALTH CENTER LIMITED PARTNERSHIP, a Massachusetts
limited partnership ("LANDLORD") and WASHINGTON D.C. SPORTS CLUB, INC., a
Delaware corporation ("TENANT").

                Premises and Common Areas Premises and Common Areas.

1.1     Premises. Landlord hereby leases to Tenant and Tenant hereby leases from
        Landlord the space (the "PREMISES") in a building (the "BUILDING") to be
        constructed on that certain parcel of real property, in which the
        Improvements (as defined herein) are to be constructed, more
        particularly described in Exhibit A attached hereto and made a part
        hereof (the "LAND") and to constitute part of a development (the
        "DEVELOPMENT") to be located on the Land. This Lease is subject to all
        matters of record affecting the Property (as defined herein) and all
        matters that would be revealed by an accurate survey of the Property.
        The Premises are designated on the non-hatched portions of the floor
        plans attached hereto as Exhibit B and made a part hereof, with all
        depictions thereon being subject to normal construction variances and
        tolerances, and as otherwise provided in this Lease. Landlord, at its
        sole cost, shall, in accordance with the work letter agreement attached
        hereto as Exhibit C and made a part hereof (the "WORK LETTER"), perform
        Landlord's Work (as defined therein) and as part of Landlord's Work,
        shall cause the utility connections specified in the Work Letter to be
        available in the locations specified in the Work Letter.

1.2     Construction of Premises.

                (1) Tenant shall cause the Premises to be improved with
        improvements (the "IMPROVEMENTS") in accordance with the Work Letter
        (defined as the "BUILDING IMPROVEMENTS" in the Work Letter) and, subject
        to Force Majeure (as defined herein), to the extent provided herein and
        within the time(s) set forth in the Work Letter. The Improvements are to
        be used as a first-class athletic club facility (the "CLUB") more
        particularly described in Article 8 hereof. The design of the
        Improvements shall be subject to Landlord's approval, as provided in the
        Work Letter. In accordance with the terms of the Work Letter, Landlord
        shall provide Tenant with a contribution in an amount not to exceed Nine
        Million Five Hundred Thousand and 00/100 Dollars ($9,500,000.00) (the
        "LANDLORD'S CONTRIBUTION" and/or the "ALLOWANCE"). Tenant shall equip
        the Club with all required Trade Fixtures (as defined herein) as may be
        necessary to operate the Club in accordance with Section 8.1 hereof.
        Title to the Improvements and all alterations and additions thereto and
        replacements thereof (other than Trade Fixtures) thereafter constructed
        or installed on the Premises shall be and remain in Landlord. All Trade
        Fixtures, however, shall remain Tenant's property, subject to permitted
        customary third (3rd) party financing subject to and in accordance with
        Section 46 hereof, upon the expiration or earlier termination of this
        Lease; provided, however, Tenant shall not have the right to remove any
        Trade Fixtures until Tenant shall cure any Default (as defined

<PAGE>   4

        herein) or, at the termination of the term hereof as a result of any
        such Default, until Tenant complies with its payment obligations set
        forth herein. "TRADE FIXTURES" means Tenant's athletic equipment and
        machines and all of Tenant's furniture and other personal property not
        affixed to the Premises in such a manner as to do material damage upon
        their removal. The Premises and the Improvements are sometimes
        hereinafter collectively referred to as the "PROPERTY."

                (2) As a condition to the effectiveness of this Lease, Landlord
        shall cause Millennium Partners LLC to execute and deliver to Tenant a
        guaranty with respect to the Allowance in the form and substance set
        forth in Exhibit F attached hereto.

1.3     Common Areas. Tenant shall have the non-exclusive right to use the
        Common Areas (as defined herein), in common with other tenants and/or
        occupants of the Development, subject to the Condominium Documents (as
        defined herein), the CC&R (as defined herein) and any other
        nondiscriminatory rules and regulations that Landlord and/or the
        Condominium Association (as defined herein), as applicable, shall adopt
        for the Development so long as such CC&R and rules and regulations do
        not (i) materially interfere with Tenant's ability to conduct normal
        business operations; (ii) materially increase Tenant's obligations under
        this Lease, or (iii) materially decrease Tenant's rights under this
        Lease. "COMMON AREAS" means all common areas and facilities of the
        Development that are now or hereafter made available for the
        non-exclusive and general use, convenience and benefit of Tenant and/or
        Tenant's customers, employees, agents and invitees, including common
        monuments and signs; transportation facilities areas including bus
        stops, taxi-limousine stands, and bicycle parking areas; trash
        enclosures; landscaped areas; areas designated as pedestrian walkways or
        pedestrian bridges; and parking areas.

1.4     Control of Common Areas. Provided Landlord does not unreasonably
        interfere with, hinder or obstruct Tenant's use of the Premises or
        Tenant's ability to conduct business from the Premises, and does not
        otherwise materially diminish any of Tenant's rights pursuant to this
        Lease, Landlord reserves, the right from time to time:

                (1) To make changes to the Common Areas, or their design,
        including changes in the location, size, shape and number of driveways,
        entrances, parking areas, loading and unloading areas, ingress, egress,
        direction of traffic, landscaped areas and walkways. Landlord shall keep
        Tenant apprised as to any proposed change to the Common Areas or their
        design; and

                (2) To close temporarily any portions of the Common Areas for
        maintenance purposes so long as reasonable access to the Premises
        remains available, including reasonable access from the parking areas of
        the Building to the Premises.

        Landlord agrees that rerouting of pedestrian walkways within the Common
        Areas and/or rerouting of vehicles within the Common Areas shall not be
        done in a manner which would materially hinder or obstruct Tenant's
        ability to conduct business from the Premises.

<PAGE>   5

1.5     Definition of Floor Area. The term "FLOOR AREA" as used in this Lease
        shall mean the rentable square footage of the Premises (or, where
        applicable, of other premises located or proposed in or outside the
        Development), measured from the exterior surface of building walls (and
        from extensions thereof, in the case of openings), and from the exterior
        surface of any demising partitions. At such time as the Improvements
        have been constructed, Landlord shall deliver to Tenant a notice which
        sets forth the Floor Area of the Premises together with reasonable
        documentation evidencing Landlord's determination of the Floor Area of
        the Premises. Tenant shall have ten (10) days following the receipt of
        Landlord's notice of the determination of the Floor Area in which to
        deliver to Landlord a notice objecting to such determination. In the
        event Tenant does not so deliver such objection notice, then, in such
        event, Landlord's calculation shall be deemed accepted by Tenant and
        incorporated herein by this reference. In the event that Tenant delivers
        such a notice to Landlord, Landlord and Tenant shall have thirty (30)
        days in which to work together to calculate the Floor Area of the
        Premises. In the event Landlord and Tenant cannot so agree, then, until
        agreement is reached, either party may submit such dispute to
        arbitration in accordance with the Commercial Arbitration Rules of the
        Boston, Massachusetts chapter of the AAA (as defined herein) and the
        party deemed less correct in such dispute shall pay the other party's
        costs of such arbitration. Except as expressly provided to the contrary
        in this Section 1.5, the procedure for arbitration shall be governed by
        the proceedings set forth in Section 7.3 hereof. Landlord and Tenant
        acknowledge that the projected Floor Area of the Premises shall be
        approximately 100,000 square feet.

2.      Term.

<PAGE>   6

2.1     Commencement. This Lease constitutes a binding agreement and the
        obligations of Landlord and Tenant hereunder shall be effective upon
        execution and delivery of this Lease by both Landlord and Tenant.
        However, the initial term ("INITIAL TERM") of this Lease shall commence
        upon the date (the "COMMENCEMENT DATE") which is the earlier of (i) the
        date upon which Tenant commences normal business operations from the
        Premises (it being understood that the use of the Development as
        described in Section 2.2 hereof shall not be deemed to constitute normal
        business operations from the Premises by Tenant) and (ii) the date (a)
        which is the later of (1) six (6) months after Landlord shall
        "SUBSTANTIALLY COMPLETE" (as defined herein) the Minimum Landlord's Work
        (as defined herein) and (2) twelve (12) months after the installation of
        the concrete deck for the fifth (5th) floor of the Building (the
        "SCHEDULED COMPLETION DATE"), the Scheduled Completion Date being
        extended by any period that Tenant using reasonable diligence shall have
        been unable (aa) to substantially complete the Improvements in
        accordance with the Work Letter (collectively, "TENANT'S WORK") by the
        Scheduled Completion Date due to Landlord Delays (as defined herein)
        and/or (bb) to conduct normal business operations in the Premises as a
        result of the non-completion of Landlord's Work by the Scheduled
        Completion Date (subject to extension due to Tenant Delays (as defined
        herein)) and (b) on which the Premises are reasonably accessible (A)
        from the parking areas of the Building and the parking areas of the
        Building are reasonably accessible and usable for parking purposes and
        (B) by pedestrians from the Common Areas. "SUBSTANTIALLY COMPLETE" means
        (as certified by Landlord's architect) complete subject to the
        completion of minor punch-list type items or other minor components of
        Landlord's Work or the Minimum Landlord's Work, as applicable, the
        performance of which will not materially interfere with Tenant's Work to
        ready the Premises for Tenant's use and occupancy thereof. Landlord
        shall diligently proceed to complete said punch list items. "MINIMUM
        LANDLORD'S WORK" means Landlord's Work as describe in the Work Letter
        exclusive of base building systems, mechanical systems and operational
        elevators. If Landlord shall be delayed in substantially completing
        Landlord's Work, the Minimum Landlord's Work and/or the Common Areas and
        such delay shall be caused by or shall arise out of or in connection
        with any of the following (each a "TENANT DELAY"):

                        (1) Tenant's direction that Landlord delay in proceeding
                with any segment or part of Landlord's Work, the Minimum
                Landlord's Work and/or the Common Areas (except under
                circumstances where the basis for such direction is the fact
                that Landlord must rectify an error in Landlord's Work, the
                Minimum Landlord's Work and/or the Common Areas that is not
                otherwise attributable to Tenant); or

                        (2) the performance of work by any person, or entity
                employed or hired by Tenant or on behalf of Tenant that actually
                delays Landlord in the completion of Landlord's Work, the
                Minimum Landlord's Work and/or the Common Areas, provided that
                if Landlord shall be aware of any such delay, Landlord shall
                immediately notify Tenant thereof and Tenant fails to remedy any
                such delay by the end of the second (2nd) day following receipt
                of Landlord's notice of any such delay; or

<PAGE>   7

                        (3) any acts or omissions of Tenant, or of any Affiliate
                (as defined herein) of Tenant that actually delays Landlord in
                the completion of Landlord's Work, provided that if Landlord
                shall be aware of any such delay, Landlord shall immediately
                notify Tenant thereof and Tenant fails to remedy any such delay
                by the end of the second (2nd) day following receipt of
                Landlord's notice of any such delay; or

                        (4) Tenant's unreasonable delay or refusal in making
                changes to the Work Letter reasonably requested by Landlord; or

                        (5) any breach of any of the terms of this Lease by
                Tenant that actually delays Landlord in substantially completing
                Landlord's Work, the Minimum Landlord's Work and/or the Common
                Areas, provided that if Landlord shall be aware of any such
                delay, Landlord shall immediately notify Tenant thereof and
                Tenant fails to remedy any such delay by the end of the second
                (2nd) day following receipt of Landlord's notice of any such
                delay; or

                        (6) any unreasonable failure on Tenant's part to
                cooperate with Landlord in connection with Landlord's
                performance of Landlord's Work, the Minimum Landlord's Work
                and/or the Common Areas;

        then notwithstanding anything in this Lease to the contrary, Landlord's
        Work and/or the Minimum Landlord's Work shall be deemed to be
        Substantially Complete as of the date that substantial completion would
        have occurred but for such delay and the Common Areas shall be deemed to
        be accessible and reasonably usable as of the date that the Common Areas
        would have been accessible and reasonably usable but for such delay, as
        applicable.

        If Tenant desires a change in the Work Letter or Tenant requests for any
        materials, finishes or installation not originally contemplated by this
        Lease or contained in the Work Letter, Tenant shall submit to Landlord
        the proposed change or request (herein called a "TENANT REVISION"). A
        Tenant Revision shall be subject to Landlord's approval, which approval
        shall not be unreasonably withheld or delayed, and, if so approved,
        Landlord shall cause to be prepared and shall submit to Tenant for its
        approval or disapproval, an estimate of the delays in performance of
        Landlord's Work resulting from Tenant's request for a Tenant Revision
        and an estimate of the incremental increased cost to Landlord to
        complete Landlord's Work as a result of such Tenant Revision, as
        reasonably determined by Landlord. Tenant shall approve or disapprove
        the estimate within five (5) days after receipt of such estimate. In the
        event Tenant shall approve any such estimate, any delays resulting from
        a Tenant Revision shall be deemed a Tenant Delay and Tenant shall be
        solely responsible for any increased cost to complete Landlord's Work
        resulting from a Tenant Revision and all such costs shall be paid by
        Tenant to Landlord within thirty (30) days after rendition of a bill
        therefor. If Tenant shall fail to respond within such five (5) day
        period, then a Tenant Revision shall be deemed withdrawn.
        Notwithstanding Tenant's approval or disapproval of Landlord's estimate
        with respect to a Tenant

<PAGE>   8

        Revision, Tenant shall be responsible for all professional fees
        associated with Landlord's review of a Tenant Revision and the
        preparation of Landlord's estimate(s) and revised construction documents
        in connection therewith.

        For all purposes hereof, "LANDLORD DELAY" means the delay in the
        Substantial Completion of Tenant's Work to be the extent caused by or
        arising out of or in connection with any of the following:

                        (i) Landlord's direction that Tenant delay in proceeding
                with any segment or part of Tenant's Work (except under
                circumstances where the basis for such direction is the fact
                that Tenant must rectify an error in Tenant's Work that is not
                otherwise attributable to Landlord); or

                        (ii) the performance of work by any person, or entity
                employed or hired by Landlord or on behalf of Landlord that
                actually delays Tenant in the completion of Tenant's Work,
                provided that if Tenant shall be aware of any such delay, Tenant
                shall immediately notify Landlord thereof and Landlord fails to
                remedy any such delay by the end of the second (2nd) day
                following receipt of Tenant's notice of any such delay; or

                        (iii) any acts or omissions of Landlord or of any
                Affiliate of Landlord that actually delay Tenant in the
                completion of Tenant's Work (except in connection with the
                exercise of any of Landlord's rights expressly set forth in this
                Lease and/or the Work Letter), provided that if Tenant shall be
                aware of any such delay, Tenant shall immediately notify
                Landlord thereof and Landlord fails to remedy any such delay by
                the end of the second (2nd) day following receipt of Tenant's
                notice of any such delay; or

                        (iv) any breach of any of the terms of this Lease by
                Landlord, including, without limitation, the funding of the
                Allowance subject to and in accordance with the terms and
                conditions of this Lease, that actually delays Tenant in
                substantially completing Tenant's Work provided that if Tenant
                shall be aware of any such delay, Tenant shall immediately
                notify Landlord thereof and Landlord fails to remedy any such
                delay by the end of the second (2nd) day following receipt of
                Tenant's notice of any such delay; or

                        (v) the non-completion of Landlord's Work as of the date
                on which the concrete deck for the fifth (5th) floor of the
                Building is installed and Tenant commences the performance of
                Tenant's Work if and to the extent any such delay would not have
                occurred had Landlord's Work been Substantially Completed as of
                such date and Tenant has endeavored, in good faith, to use good
                construction practice, but at no additional cost to Tenant, to
                complete Tenant's Work as expeditiously as reasonably possible
                under the circumstances and notwithstanding such non-completion
                of Landlord's Work as of the date on which the concrete deck for
                the fifth (5th) floor of the Building is installed, provided
                that if Tenant

<PAGE>   9

                shall be aware of any such delay, Tenant shall immediately
                notify Landlord thereof.

        Without limiting any provisions of this Lease, any dispute between the
        parties as to whether a Tenant Delay or Landlord Delay has occurred or
        the amount of such delay shall be subject to arbitration pursuant to
        Section 7.3 hereof.

        The parties shall execute an acknowledgment that Landlord's Work and/or
        the Minimum Landlord's Work has been completed (or deemed to be
        completed) and that the Common Areas are accessible and reasonably
        usable (or deemed to be accessible and reasonably usable) and that the
        Commencement Date has occurred, as soon as reasonably practicable
        thereafter. Neither Landlord's failure to request, nor Tenant's failure
        to execute, such agreement shall affect the Commencement Date. Landlord
        shall provide Tenant (i) notice not less than one hundred twenty (120)
        days prior to the date that Landlord anticipates Landlord shall
        Substantially Complete Landlord's Work ("LANDLORD'S FIRST SUBSTANTIAL
        COMPLETION ESTIMATE NOTICE") and (ii) a second notice to Tenant
        ("LANDLORD'S SECOND SUBSTANTIAL COMPLETION ESTIMATE NOTICE") not less
        than thirty (30) days prior to the date that Landlord anticipates
        Landlord shall Substantially Complete Landlord's Work, in each case
        without taking into account any acceleration of the date Landlord's Work
        shall be deemed to have been Substantially Complete as a result of one
        or more Tenant Delays. The Initial Term shall terminate on the twentieth
        (20th) anniversary of the Commencement Date. Reference in this Lease to
        "LEASE YEAR" shall mean each successive twelve (12) month period during
        the Term (as defined herein) commencing on January 1 and ending December
        31 (or such other twelve (12) month period as shall be reasonably
        designated by Landlord), provided that the first Lease Year shall begin
        upon the Commencement Date and end on December 31 of the calendar year
        in which the Commencement Date occurs, and the last Lease Year shall end
        on the last day of the Initial Term or the last day of the last
        exercised Option Period (as defined herein) hereunder. "TERM" as used
        herein shall mean the Initial Term and all validly exercised Option
        Periods.

2.2     Access Prior to Commencement Date. Until the earlier of (i) the
        Commencement Date and (ii) the date on which a termination notice is
        served by either Landlord or Tenant pursuant to Section 54 hereof, and
        subject to all applicable laws and ordinances, Tenant shall be entitled
        to maintain an office either within the Development or at a location
        suitable therefor reasonably acceptable to Landlord and Tenant, or, at
        Landlord's election, on the surface parking area (if any) adjacent to
        said Development, all at no cost to Tenant for Monthly Base Rent, Common
        Area Expenses or real property taxes (as such terms are defined herein),
        for its pre-opening and construction period activity. Tenant shall be
        entitled to hang a banner or other signage in the Development, subject
        to compliance with applicable laws, regulations, permits, approvals,
        ordinances, the Condominium Documents (if applicable) and the CC&R and
        subject to Landlord's prior approval of all Signage Approval Factors (as
        defined herein). Such office shall be deemed to constitute a part of the
        Premises for all purposes (including, without limitation, Article 19
        hereof (Indemnification) and Article 20 hereof (Insurance) and Tenant's
        obligation to pay for utilities), but Tenant shall not be required to
        pay Monthly Base

<PAGE>   10

        Rent, Common Area Expenses or real property taxes with respect thereto.
        If Landlord makes available the surface parking area for the purpose of
        such temporary office, it shall be Tenant's obligation, at its sole
        cost, to provide a trailer for Tenant's use on such parking area and to
        pay all costs and expenses and bear all liabilities associated
        therewith.

3.      Options to Extend.

        Landlord hereby grants to Tenant three (3) successive options (each an
"OPTION" and collectively, the "OPTIONS") to extend the term of this Lease, each
for a one hundred sixty-eight (168) month period (each an "OPTION PERIOD" and,
collectively, the "OPTION PERIODS"), upon the same terms and conditions as those
set forth in this Lease for the Initial Term (except that no options to extend
other than the Options are granted). In order to exercise an Option, Tenant must
give notice to Landlord of its intention to exercise the applicable Option on or
before the date (the "OPTION DATE") which is six (6) months prior to the end of
the Initial Term or the previous Option Period, as applicable; provided,
however, that it shall be a condition precedent to the exercise of each Option
that Tenant shall not be in Default as of the respective Option Date. Tenant's
election not to exercise an Option, or the passage of an Option Date without
exercise of the subject Option, shall thereby terminate the subsequent Option or
Options. The Options are personal to Tenant and may not be assigned except in
connection with a permitted assignment of Tenant's interest in this Lease.
Landlord shall deliver to Tenant a notice reminding Tenant of Tenant's right to
exercise an Option not more than six (6) months and not less than thirty (30)
days prior to the date Tenant may first exercise an Option, provided that in no
event shall Landlord's failure to deliver such notice impose any liability on
Landlord's part; however if Landlord fails to deliver such notice the time for
Tenant's exercise of an Option shall be extended, if necessary, to the date
which is thirty (30) days from the date of delivery of such notice from
Landlord.

4.      Membership.

        Tenant agrees to provide both daily passes and membership on the
following terms and conditions set forth in this Article 4. In addition, all
Club daily passes and memberships shall be subject to the nondiscriminatory
rules and regulations promulgated by Tenant for use of the Club.

4.1     Hotel Guests. Tenant shall permit room guests of the to-be constructed
        hotel in the Development, currently contemplated to be operated as a
        Rosewood Hotel (such hotel (which, for purposes of this Lease, shall
        include any extended stay or time share facilities operated in
        connection therewith or otherwise by Landlord, the operator thereof or a
        successor or assign of either), the "PRIMARY HOTEL", and such room
        guests of such hotel (including such extended stay component), the
        "PRIMARY HOTEL GUESTS"), to have access to the Club to use the
        facilities therein at such times as the Club is open for business in
        consideration for a daily fee payment not to exceed seventy-five percent
        (75%) of the then applicable daily fee payment for room guests of other
        hotels (other than the Primary Hotel) to have access to the Club to use
        the facilities therein or a monthly fee payment pursuant to a separate
        written agreement between the owner of the Primary Hotel and Tenant (the
        "ATHLETIC CLUB FEE"), a copy of which Tenant shall promptly deliver to

<PAGE>   11

        Landlord.The operator of the Primary Hotel shall pay the Athletic Club
        Fee to Tenant on a monthly basis as provided in this Section 4.1. Tenant
        shall issue the operator of the Primary Hotel a bill for each monthly
        Athletic Club Fee ("PRIMARY HOTEL BILL") payable on the later to occur
        of the tenth (10th) day of each calendar month and the tenth (10th) day
        following the receipt of the Primary Hotel Bill by the Primary Hotel. If
        the operator of the Primary Hotel does not pay in full the Primary Hotel
        Bill within thirty (30) days from its receipt of the Primary Hotel Bill,
        then, in such event, Tenant may deliver a termination notice to the
        operator of the Primary Hotel terminating the right of the Primary Hotel
        and Primary Hotel Guests to use the Club until payment in full of all
        amounts due. Such termination notice shall be delivered by Tenant and be
        effective five (5) days following delivery of such notice to the
        operator of the Primary Hotel. In the event the Primary Hotel shall fail
        to perform any of the terms and conditions contained in this Section 4.1
        on its part to be performed, Landlord shall be under no obligation or
        liability whatsoever to Tenant; provided, however, that until such time
        as Tenant and the Primary Hotel shall have entered into an agreement
        with respect to this Section 4.1 (the "ATHLETIC CLUB AGREEMENT"), a copy
        of which Tenant shall promptly deliver to Landlord, (a) Landlord shall
        reasonably cooperate with Tenant in seeking to obtain the performance of
        the Primary Hotel with respect to such applicable terms and conditions
        of this Section 4.1 and (b) so long as Landlord or an Affiliate (as
        defined herein) of Landlord is the owner of the Primary Hotel, Landlord
        shall pay to Tenant the portion(s) of any Primary Hotel Bill which the
        operator of the Primary Hotel does not pay to Tenant in full in
        accordance with this Section 4.1 within thirty (30) days after
        Landlord's receipt of the applicable Primary Hotel Bill and a statement
        describing in reasonable detail the portion(s) thereof which remain due.
        Without limiting any provisions of this Lease, any dispute between
        Landlord and Tenant as to any Primary Hotel Bill shall be subject to
        arbitration pursuant to Section 7.3 hereof. For purposes of this Section
        4.1, "AFFILIATE" shall mean a Person (as defined herein) which shall (1)
        control (as defined herein), (2) be under the control of, or (3) be
        under common control with the Person in question.

4.2     Performance by Primary Hotel. If the Primary Hotel shall default in any
        of the Primary Hotel's obligations under Section 4.1 hereof, or there
        shall exist a bona fide dispute with the Primary Hotel under Section 4.1
        hereof and Tenant notifies Landlord in writing that Tenant has
        previously notified the Primary Hotel of such dispute and that such
        default or notice has been disregarded or not reasonably satisfactorily
        acted upon, then upon Tenant's request and provided Tenant is not in
        default under this Lease, Landlord shall use reasonable efforts to
        enforce Landlord's rights under the hotel management agreement with the
        Primary Hotel (the "HOTEL MANAGEMENT AGREEMENT") for Tenant's benefit,
        including, without limitation, giving notices, claims and demands to and
        on the Primary Hotel. Tenant shall reimburse Landlord for all costs
        incurred in connection with the enforcement of such rights.
        Notwithstanding the foregoing, Landlord shall have no obligation to
        commence any action at law or in equity to obtain any relief sought by
        Tenant by reason of the Primary Hotel's breach of the Primary Hotel's
        obligations under Section 4.1 hereof. If, after request from Tenant,
        Landlord shall fail or refuse to take appropriate action for the
        enforcement of Landlord's rights against the Primary Hotel with respect
        to Section 4.1 hereof, Tenant shall have the right to take such action
        in

<PAGE>   12

        Tenant's own name, and for such purpose and only to such extent, all of
        the rights of Landlord under the Hotel Management Agreement are hereby
        conferred upon and conditionally assigned to Tenant and Tenant hereby is
        subrogated to such rights to the extent that the same shall apply to
        Section 4.1 hereof; provided, however, that (i) Tenant shall only have
        such rights if Tenant shall not be in default under this Lease and (ii)
        Landlord shall have the right to require Tenant to discontinue such
        action if in the reasonable opinion of Landlord such action may cause a
        default, cancellation, forfeiture or termination of the Hotel Management
        Agreement or any Senior Interest. If any such action against the Primary
        Hotel in Tenant's name shall be barred by reason of lack of privity,
        non-assignability or otherwise, Tenant may take such action in
        Landlord's name provided Tenant has obtained the prior consent of
        Landlord, and that copies of all papers and notices of all proceedings
        shall be promptly given to Landlord so that Landlord may be kept fully
        informed in respect thereof.

4.3     Residential Occupants. Tenant agrees that all applications for
        membership in the Club submitted by the residential occupants and their
        families at the Development shall be automatically and promptly accepted
        provided that each such individual shall observe the rules and
        regulations reasonably promulgated by Tenant from time to time with
        respect to the use of the Club which rules and regulations shall be
        consistent with the rules and regulations customarily promulgated by
        operators of first-class coed athletic clubs and shall not be enforced
        in a discriminatory manner.

4.4     Other Occupants. Subject to availability, Tenant agrees that all
        applications for membership in the Club submitted by employees or
        principals of any of the tenants in the Development shall be
        automatically and promptly accepted provided that each such individual
        shall observe the rules and regulations reasonably promulgated by Tenant
        from time to time with respect to the use of the Club which rules and
        regulations shall be consistent with the rules and regulations
        customarily promulgated by operators of first-class coed athletic clubs
        and shall not be enforced in a discriminatory manner.

5.      Rent.

        Rent shall be calculated and payable as follows:

5.1     Annual Base Rent. During the Initial Term Tenant agrees to pay Landlord
        annual base rent for the Premises (the "ANNUAL BASE RENT") at the rate
        of Two Million Seven Hundred Fifty Thousand and 00/100 Dollars
        ($2,750,000.00) per annum (the "INITIAL ANNUAL BASE RENT AMOUNT"). In
        addition to Annual Base Rent, Tenant agrees to pay as "ADDITIONAL RENT"
        (sometimes referred to as "ADDITIONAL RENT") all other charges payable
        by Tenant pursuant to the terms of this Lease. Annual Base Rent together
        with all such additional rent is collectively referred to herein as
        "RENT". Tenant shall pay Annual Base Rent and, except as provided
        otherwise herein, Additional Rent, in equal monthly installments on the
        first day of each month (each such equal monthly installment of Annual
        Base Rent is referred to herein as "MONTHLY BASE RENT"). If for any
        reason the Initial Term (or any Option Period) commences or ends on a
        day other than the first day of a calendar month (other than a
        termination resulting from a Default), then Rent for

<PAGE>   13

        the first month and for the last month of the Term shall be prorated in
        the proportion that the number of days during the first and last months
        of the Term bears to the actual number of days in such months. All Rent
        shall be paid to Landlord, without prior demand or notice, in lawful
        money of the United States of America, at such place as Landlord may
        from time to time reasonably designate in writing and shall be due and
        payable on the first day of each month. Rent shall be paid to Landlord
        on the date due without notice or demand, and without abatement,
        deduction or set-off except as otherwise expressly set forth in this
        Lease. No payment by Tenant or receipt by Landlord of a lesser amount
        than the Annual Base Rent or Additional Rent, nor shall any endorsement
        or statement on any check or in any letter accompanying any check or
        payment, as Annual Base Rent or Additional Rent, be deemed an accord and
        satisfaction, and Landlord may accept such check or payment without
        prejudice to Landlord's right to recover the balance of such Annual Base
        Rent and Additional Rent or pursue any other remedy provided in this
        Lease or by law.

6.      Club Name.

        Tenant shall be entitled to operate the Club under the name "The Sports
Club/Boston," although Tenant has no obligation to use such name. Tenant shall
not use the name "Millennium" or the name of the Primary Hotel in the operating
name of the Club. If Tenant shall not operate the Club under the operating name
"The Sports Club/Boston" or under an operating name which incorporates the
phrase "Sports Club/LA" in conjunction with a geographic designation with
respect to the city in which the Club is located or such other operating name to
which a substantial number of then existing comparable athletic club facilities
operated by Tenant and affiliates of Tenant are being operated under, the
operating name of the Club shall be subject to the prior approval of Landlord,
which approval shall not be unreasonably withheld or delayed.

7.      Common Area Expenses/Operating Expenses.

7.1     Definition. Commencing upon the Commencement Date, Tenant shall pay, in
        addition to Monthly Base Rent, all assessments and charges which are
        assessed against or incurred in connection with the Premises and/or the
        Common Areas, all assessments and charges which are assessed against or
        incurred in connection with the CC&R which are reasonably allocable to
        the Premises and/or the Common Areas and all charges assessed with
        respect to the Premises by the Condominium Association (collectively,
        "COMMON AREA EXPENSES"). If at any time during the Term the Premises
        shall not be subject to a condominium form of ownership, then in lieu of
        paying charges assessed by the Condominium Association, Tenant shall pay
        to Landlord Tenant's Share (as defined herein) of Operating Expenses (as
        defined herein). "OPERATING EXPENSES" shall mean all costs incurred by
        Landlord (except as hereafter defined) in connection with the operation
        of the Development for each successive twelve (12) month period (as
        designated by Landlord) occurring in whole or in part during the Term
        (and any renewals). Tenant hereby acknowledges that Operating Expenses
        shall include the following costs (by way of illustration, but not
        limitation): real property taxes and assessments and any taxes or

<PAGE>   14

        assessments hereafter imposed in lieu thereof with respect to the
        Building, including the Common Areas; water and sewer charges; dues and
        fees paid to civic organizations and associations in which Landlord is a
        member in the jurisdiction in which the Building is located, provided
        that it is then customary for landlords of similar buildings to be
        members of such organizations and associations and to charge tenants any
        such dues and fees by means of operating expenses or otherwise;
        accounting fees; legal fees; management fees with respect to the
        Development, (not in excess of four percent (4%) of the total revenue
        derived by Landlord from Landlord's operation of the Development and not
        in excess of the management fees which are included as an operating
        expense or otherwise in the other leases for commercial space in the
        Building between Landlord and other commercial tenants of the Building);
        utilities; janitorial services; parking patrol; labor; utilities
        surcharges or any other costs levied, assessed or imposed by, or at the
        direction of, or resulting from, statutes or regulations or
        interpretations thereof, promulgated by any federal, state, regional,
        municipal or local government authority in connection with the use or
        occupancy of the Building, including the Common Areas; the cost in
        excess of net insurance and condemnation proceeds of any capital
        improvements (amortized over such period as Landlord shall determine
        together with interest at the rate actually incurred by Landlord from a
        third party lender on the unamortized balance) made to the Building,
        including the Common Areas, but only if incurred by Landlord (i) to
        comply with any governmental law, rule or regulation which may become
        effective after the date of this Lease or any CC&R (other than in
        connection with the initial construction of the Development by Landlord
        (exclusive of Tenant's Work and/or any Tenant Revision)), or (ii) where
        the present value of the projected costs of the improvement (including,
        original purchase cost, installation and subsequent repairs and
        replacements) is less than the present value of the amount reasonably
        anticipated to be saved with respect to the applicable component(s) of
        Operating Expense(s) or Common Area Expense(s), as applicable, payable
        by Tenant subject to and in accordance with this Article 7 as the result
        of such capital improvement over the remainder of the Initial Term or an
        exercised Option Period, as applicable; supplies; materials; equipment;
        tools; payroll expenses; rental of personal property used in the
        maintenance and other upkeep of the Building (to the extent related to
        the Premises and/or the Common Areas (e.g., those service facilities
        and/or areas of the Building which are used to provide Building services
        to the Premises and/or the Common Areas or used in connection with the
        operation and maintenance of the Premises and/or the Common Areas)),
        including the Common Areas; costs and expenses of gardening, landscaping
        and irrigation; maintenance of signs; personal property taxes levied on
        or attributable to personal property used in connection with the
        Building (to the extent related to the Premises and/or the Common Areas
        (e.g., those service facilities and/or areas of the Building which are
        used to provide Building services to the Premises and/or the Common
        Areas or used in connection with the operation and maintenance of the
        Premises and/or the Common Areas)), including the Common Areas;
        reasonable audit or verification fees in connection with this Article 7;
        and costs and expenses (whether or not capitalized) of repairs,
        resurfacing, maintenance, painting, lighting, cleaning, steam cleaning,
        refuse removal, parking patrol, sweeping, sealcoating, restriping and
        similar items to the extent includable in Operating Expenses or Common
        Area Expenses, as applicable, subject to and in accordance with this
        Article 7.

<PAGE>   15

        Operating Expenses and Common Area Expenses, as applicable, shall not
        include: depreciation of any kind, including on any buildings or parking
        structures located within the Development or on any equipment;
        construction costs incurred in improving or modifying space for new
        tenants of the Development or renovating space vacated by any tenant;
        any costs which are reimbursable by (i) tenants of the Development
        (other than through their payment of Operating Expenses and/or Common
        Area Expenses, as applicable), (ii) other third parties, or (iii)
        proceeds of insurance; Landlord's executive salaries; real estate
        brokers' commissions; or principal or interest on any indebtedness
        (except as specifically permitted above).

7.2     Exclusions. In addition to the exclusions from Operating Expenses and
        Common Area Expenses set forth in Section 7.1 hereof, Operating Expenses
        and Common Area Expenses shall not include the following:

                (1) the cost of capital expenditures except for those
        specifically described in Section 7;

                (2) costs incurred with respect to goods or services (including
        utilities, capital improvements, maintenance and repair) supplied to the
        Common Areas to the extent that such goods or services are designed for
        the exclusive or primary use or benefit of another tenant or tenants
        (provided that if such goods or services are for the primary use or
        benefit of another tenant or tenants, the cost thereof shall be included
        in Operating Expenses and Common Area Expenses, as applicable, to the
        extent it is fair and equitable to do so);

                (3) costs incurred to the extent that such costs are reimbursed
        by insurance;

                (4) any ground lease or master lease payments;

                (5) legal fees incurred by Landlord in connection with (1) the
        preparation, negotiation and enforcement of leases, subleases and lease
        renewals, (2) the purchase or transfer or disposition of all or any part
        of the Development or any interest therein and (3) any financing or
        refinancing with respect to the Development;

                (6) all leasing costs with respect to the Development, including
        hard and soft costs of tenant improvements and preparation of any
        premises, tenant concessions, advertising costs and brokerage
        commissions;

                (7) costs of purchasing or installing artwork or signage (it
        being agreed that the cost of any such signage that identifies the
        Development may be included within Common Area Expenses and Operating
        Expenses, as applicable);

                (8) costs of any rental or lease of equipment or capital items
        that if purchased (whether outright or financed) would otherwise be
        excluded from Operating Expenses or Common Area Expenses, as applicable;

<PAGE>   16

                (9) costs paid to Affiliates of Landlord in excess of market
        rates;

                (10) fines, penalties, late payment charges, and interest
        thereon, and other amounts imposed in lieu thereof, the payment of which
        is attributable to Landlord's failure to act in a commercially
        reasonable manner;

                (11) costs to the extent arising from or relating to the
        negligence or willful misconduct of Landlord or Landlord's agents,
        principals, employees, licensees or Affiliates;

                (12) Landlord's general overhead and general administrative
        expenses;

                (13) costs for repair or maintenance covered by warranties or
        service contracts (however, the costs of the warranties or service
        contracts shall be includable in Common Area Expenses and Operating
        Expenses, as applicable);

                (14) expenditures required by Landlord's failure to comply with
        laws, regulations or orders, which are required to be complied with by
        Landlord under this Lease (except to the extent expressly permitted in
        Section 7.1 hereof);

                (15) costs to repair latent or patent defects with respect to
        the Development or Landlord's Work;

                (16) costs incurred due to the violation by Landlord or any
        other occupant of the Development of the terms or conditions of any
        lease;

                (17) costs arising from or relating to the presence of Hazardous
        Materials (as defined herein) in or about the Development;

                (18) any costs associated with the initial construction of the
        Development and failure by Landlord to construct the Development in
        accordance with applicable legal requirements as of the date Landlord
        shall Substantially Complete Landlord's Work (exclusive of any such
        costs arising out of Tenant's Work and/or any Tenant Revision);

                (19) insurance premiums, but only if and to the extent Landlord
        is reimbursed for the cost thereof by Landlord's insurers;

                (20) bad debt expenses resulting from Landlord's negligence or
        improper acts;

                (21) costs of charitable or political contributions and fees and
        dues paid to trade associations (other than as provided in Section 7.1
        hereof);

                (22) any cost payable by Tenant pursuant to other Sections of
        this Lease; and

<PAGE>   17

                (23) any Operating Expenses or Common Area Expenses, as
        applicable, reasonably allocable to any parking structure located within
        the Development.

7.3     Building Insurance. Except for Landlord's cost of the all-risk property
        insurance for the Improvements, as addressed in Section 20.4 hereof, if
        Landlord's cost of obtaining Landlord's Insurance (as defined herein)
        for the Property and/or the Building and the operations thereof exceeds
        the cost of obtaining such insurance for the first twelve (12) months
        following the Commencement Date, Tenant shall pay to Landlord, in a
        manner similar to this Section 7.3 within thirty (30) days after being
        billed therefore, an amount equal to Tenant's Share of such increased
        cost.

        "TENANT'S SHARE" shall mean a percentage equal to the quotient obtained
        by dividing the Floor Area of the Premises (subject to Section 7.6
        hereof) by the total number of square feet of Floor Area in the other
        tenantable portions of the Development as of the date of the Actual
        Statement (as defined herein) for the applicable Lease Year. Landlord
        and Tenant acknowledge that at this time it is not possible to determine
        the equitable allocation of all components of Operating Expenses or
        Common Area Expenses, as applicable. Accordingly, Landlord shall use
        commercially reasonable efforts from time to time (i) to equitably
        adjust Tenant's Share of some or all of the components of Operating
        Expenses to a percentage other than that which would be arrived at by
        the methodology hereinbefore described for the determination of Tenant's
        Share, so as to ensure that (a) Tenant will pay Tenant's equitable share
        of Operating Expenses and (b) if and to the extent applicable and the
        same shall not result in an increase in the payment of Common Area
        Expenses or Operating Expenses, as applicable, by Tenant in accordance
        with this Article 7, the methodology employed by Landlord to determine
        Tenant's equitable share of Operating Expenses is substantially
        consistent with the methodology employed in connection with that certain
        lease between an Affiliate of Landlord, as landlord and an Affiliate of
        Tenant, as tenant, for certain space in New York, New York (the "NEW
        YORK ATHLETIC CLUB LEASE") for calendar years 1996 and 1997 or (ii) to
        equitably adjust some or all of the components of Common Area Expenses,
        so as to ensure that Tenant will pay Common Area Expenses in accordance
        with the methodology hereinbefore described in Section 7.1 hereof and,
        if and to the extent applicable and the same shall not result in an
        increase in the payment of Common Area Expenses or Operating Expenses,
        as applicable, by Tenant in accordance with this Article 7, the
        methodology employed in connection with the New York Athletic Club Lease
        for calendar years 1996 and 1997 (it being agreed and acknowledged that
        in each instance in which the methodology employed in connection with
        this Lease shall contradict or be inconsistent with the aforementioned
        methodology employed in connection with the New York Athletic Club
        Lease, such aforementioned methodology employed in connection with the
        New York Athletic Club Lease shall prevail and govern if and to the
        extent applicable and such employment shall not result in an increase in
        the payment of Common Area Expenses or Operating Expenses, as
        applicable, by Tenant in accordance with this Article 7.) In the event
        Tenant shall dispute Landlord's determination as to the equitable
        allocation of any component of Operating Expenses or Common Area

<PAGE>   18
        Expenses, as applicable, and if Landlord and Tenant shall have been
        unable to resolve such dispute, within thirty (30) days following the
        date that Tenant shall have notified Landlord of such dispute, then,
        provided that Tenant shall pay all such amounts as billed by Landlord on
        or before the due dates for payment, Tenant may submit such dispute to
        binding arbitration in accordance with the Commercial Arbitration Rules
        of the AAA and the following provisions hereof within ten (10) days next
        following the giving of any notice by Tenant to Landlord stating that it
        wishes such dispute to be determined by arbitration. Landlord and Tenant
        shall each give notice to the other setting forth the name and address
        of an arbitrator designated by the party giving such notice within ten
        (10) days after Landlord's receipt of Tenant's arbitration notice. If
        either party shall fail to give notice of such designation within said
        ten (10) days, then the arbitrator to be chosen by such party shall be
        chosen in the same manner as hereinafter provided for the appointment of
        the third arbitrator in the case where the two arbitrators chosen
        hereunder are unable to agree upon such appointment. The two arbitrators
        shall designate a third arbitrator. If the two arbitrators shall fail to
        agree upon the designation of a third arbitrator within ten (10) days
        after the designation of the second arbitrator, then either party may
        apply to the American Arbitration Association or any successor
        organization thereto ("AAA") for the designation of such arbitrator;
        provided, however, nothing contained herein shall be construed to
        require submission of any dispute to the AAA. All arbitrators shall be
        persons who shall have had at least ten (10) years experience in the
        business of operating or managing commercial real estate in Boston,
        Massachusetts and shall not be affiliated with either Landlord or
        Tenant. The three arbitrators shall conduct such hearings as they deem
        appropriate in accordance with the Commercial Arbitration Rules of the
        AAA, making their determination in writing and giving notice to Landlord
        and Tenant of their determination within ten (10) days, if at all
        possible, after the designation of the third arbitrator; the concurrence
        of any two of said arbitrators shall be binding upon Landlord and
        Tenant. Any award of the arbitrators shall be limited to the
        determination as to whether Landlord made an equitable allocation of the
        component(s) of Operating Expenses or Common Area Expenses, as
        applicable which are the subject of such dispute. If it is determined
        that Landlord has not equitably allocated a component(s) of Operating
        Expenses or Common Area Expenses, as applicable, then the arbitrators
        shall determine the equitable allocation thereof. The determination in
        any arbitration held pursuant to this Section 7.3 shall be final and
        binding upon Landlord and Tenant. Each party shall pay its own counsel
        fees and expenses, if any, in connection with any arbitration under this
        Section 7.3, and each party shall pay the fees and expenses of the one
        of the two (2) original arbitrators appointed by or for such party and
        the fees and expenses of the third arbitrator shall be shared by the
        parties equally; it being agreed that (1) if it shall be determined in
        the arbitration that Landlord has not equitably allocated a component(s)
        of Operating Expenses or Common Area Expenses, as applicable, and as a
        result thereof Tenant shall have made an overpayment of Operating
        Expenses or Common Area Expenses, as applicable, by more than five
        percent (5%), then, Landlord shall pay the reasonable actual
        out-of-pocket cost of the arbitration proceeding incurred by Tenant not
        to exceed $7,500.00, and the amount of any such overpayment shall be
        credited against the next installment (or installments if the credit
        exceeds the amount of the next installment) of Monthly Base Rent due
        under this Lease and if the amount of the

<PAGE>   19

         credit exceeds the amount of the subsequent installment(s) of Monthly
         Base Rent due under this Lease, the excess shall be refunded to Tenant
         within thirty (30) days after the aforementioned arbitration
         determination with interest thereon at the Prime Rate (as defined
         herein) from the date of such overpayment, and (2) if it shall be
         determined in the arbitration that Landlord has equitably allocated the
         components of Operating Expenses or Common Area Expenses, as
         applicable, then, Tenant shall pay the reasonable actual out-of-pocket
         cost of the arbitration proceeding incurred by Landlord not to exceed
         $7,500.00 and if it shall be determined in the arbitration that Tenant
         shall have made an underpayment of Operating Expenses or Common Area
         Expenses, as applicable, Tenant shall pay to Landlord the amount of any
         such underpayment within thirty (30) days after the aforementioned
         arbitration determination with interest thereon at the Prime Rate from
         the date of such underpayment.

7.4     Statements. As soon as possible after the beginning of the Initial Term,
        Landlord shall give to Tenant a statement estimating the Common Area
        Expenses or Operating Expenses, as applicable for the first Lease Year.
        Thereafter, Landlord shall give Tenant, prior to the expiration of each
        Lease Year, a statement estimating the Common Area Expenses or Operating
        Expenses, as applicable for the following Lease Year. The estimated
        Common Area Expenses or Operating Expenses, as applicable, shall be the
        applicable estimated amounts described in this Section 7. The estimated
        Common Area Expenses or Operating Expenses, as applicable, shall be
        divided into twelve (12) equal monthly installments (or, as to the first
        and last Lease Year, divided by the number of calendar months in such
        Lease Year), and Tenant shall pay to Landlord Tenant's monthly
        installment of such Common Area Expenses or Operating Expenses, as
        applicable, on the first day of each month during the Term as additional
        rent. If, in any Lease Year, the actual Common Area Expenses or
        Operating Expenses, as applicable, are less than the estimated payments
        made by Tenant for such Lease Year, as evidenced in Landlord's statement
        (the "ACTUAL STATEMENT") of actual Common Area Expenses or Operating
        Expenses, as applicable, for such Lease Year (which Landlord shall
        deliver to Tenant within ninety (90) days after the expiration of each
        Lease Year), then any overpayment made by Tenant on the monthly
        installment basis shall be credited towards the next monthly
        installment(s) falling due and the estimated monthly installments of
        Common Area Expenses or Operating Expenses, as applicable, shall be
        adjusted to reflect such lower amounts. Similarly, if, in any Lease
        Year, the actual Common Area Expenses or Operating Expenses, as
        applicable, are greater than the estimated payments made by Tenant for
        such Lease Year as evidenced in the Actual Statement for such Lease
        Year, then Tenant shall pay the amount of such difference to Landlord
        within thirty (30) days after invoice; provided, however, that if the
        amount due exceeds 1/2 of Monthly Base Rent then in effect, Tenant may
        pay such amount in thirty (30) day installments with each installment in
        the amount of the lesser of the remainder due or 1/2 of the Monthly Base
        Rent then in effect. Notwithstanding that the Term may have terminated
        or expired and Tenant has vacated the Premises, when the final
        determination is made of the actual Common Area Expenses or Operating
        Expenses, as applicable, for the last Lease Year, Tenant shall
        immediately pay to Landlord any increase due over the estimated Common
        Area Expenses or Operating Expenses, as applicable, paid by Tenant and,
        conversely, any

<PAGE>   20

        overpayment made in the event actual Common Area Expenses or Operating
        Expenses, as applicable, decrease, shall be rebated by Landlord to
        Tenant within thirty (30) days after such determination. The foregoing
        provision shall survive the expiration or earlier termination of this
        Lease.

7.5     Audit. Upon prior notice, but not more frequently than once each Lease
        Year, Tenant shall have the right to examine Landlord's books and
        records with regard to Common Area Expenses or Operating Expenses, as
        applicable, during normal business hours. If Tenant disputes the amount
        of Common Area Expenses or Operating Expenses, as applicable, set forth
        in any Actual Statement delivered by Landlord or otherwise paid by
        Tenant, Tenant must notify Landlord of such dispute in writing within
        three (3) months following Tenant's receipt of the Actual Statement.
        Tenant's failure to notify Landlord of a dispute within said three (3)
        month period shall be deemed Tenant's acceptance and approval of the
        accuracy of the Actual Statement. Provided Tenant has timely given the
        required dispute notice and has paid the amounts claimed to be due under
        the Actual Statement (including the disputed amount), Tenant shall have
        the right, to be exercised, if at all, not later than three (3) months
        after the date Tenant gave the dispute notice, to cause Landlord's books
        and records with respect to the relevant Lease Year to be audited by a
        certified public accountant, or by another Tenant representative
        mutually acceptable to Landlord and Tenant. The amounts payable under
        Section 7.4 hereof by Landlord to Tenant or by Tenant to Landlord, as
        the case may, be shall be appropriately adjusted on the basis of such
        audit. If such audit discloses a liability for further refund by
        Landlord to Tenant in excess of five percent (5%) of the Common Area
        Expense payments or Operating Expense payments, as applicable,
        previously made by Tenant for such Lease Year, Landlord shall pay for
        the reasonable cost of the audit not to exceed $7,500.00; otherwise,
        Tenant shall pay for the cost of the audit. Notwithstanding the
        foregoing, if any audit conducted by Tenant discloses that Landlord
        over-reported Common Area Expenses or Operating Expenses by more than
        five percent (5%) for the period covered by the audit, then Tenant shall
        be entitled to audit Common Area Expenses or Operating Expenses, as
        applicable, for all preceding years as to which records are available.
        Landlord shall be obligated to maintain said records for sixty (60)
        months (but for no such longer period of time) after the end of each
        Lease Year except if a dispute with respect thereto is then pending
        under Section 7.3 hereof.

7.6     Notwithstanding anything to the contrary contained herein, if in any
        Lease Year during which Tenant shall be paying Operating Expenses the
        total Floor Area of buildings in the Development which are tenantable is
        not fully occupied, then the Operating Expenses for such Lease Year
        shall be deemed to be an amount that would be incurred if such total
        Floor Area were occupied for such Lease Year, but in no event shall
        Tenant be required to pay more than ninety-five percent (95%) of the
        actual Operating Expenses.

7.7     Cost Abatement

        Provided that Tenant shall not then be in default of any of Tenant's
obligations under this Lease (following notice thereof), Tenant shall be
entitled to an aggregate credit of

<PAGE>   21

$833,333.33 to be applied against (i) the monthly installments of Common Area
Expenses or Operating Expenses, as applicable, payable by Tenant in accordance
with this Section 7, (ii) the installments of Taxes (as hereinafter defined)
payable in accordance with Section 12 hereof and (iii) the sums payable by
Tenant in accordance with Section 36 hereof for use of parking spaces located at
the Development.

8.      Use.

8.1     Permitted Use. Subject to the terms and provisions of Section 8.2
        hereof, the Premises shall be used exclusively for a first-class coed
        athletic club operated by an operator with first-class expertise,
        reputation and experience, and Tenant shall not use or permit the
        Premises to be used for any other purpose, or by an operator other than
        Tenant or an Affiliate of Tenant, without the prior consent of Landlord,
        which may be withheld in the sole and absolute discretion of Landlord.
        As used herein, "FIRST-CLASS" shall mean comparable to other athletic
        clubs with comparable facilities operated by Tenant or Tenant's
        Affiliates as of the date hereof. As a part of the athletic club
        operated from the Premises, but subject to the terms and provisions of
        Section 8.2 hereof, Tenant shall be entitled to use portions of the
        Premises for uses complementary to an athletic club (but only in support
        of Tenant's primary operation as an athletic club), such as a pro shop,
        child care facility, delicatessen, so long as the type and quality of
        such complementary uses are consistent with the services offered in
        other first-class athletic clubs; provided, however, no food or
        beverages (other than primarily for consumption at the Premises) shall
        be sold from the Premises. Any complementary uses may be achieved
        through a license, which license shall (i) be subject to all terms and
        conditions of this Lease but shall not otherwise require Landlord's
        prior approval and (ii) other than with respect to the complimentary
        uses in the Reebok Sports Club/New York as of the date hereof, not
        conflict with an exclusive use granted by Landlord to any then current
        tenant or any future tenant or occupant of the Development of which
        Landlord has advised Tenant.

8.2     Compliance with Laws.

                (1) Tenant shall not use or occupy the Premises in violation of
        (a) law or the certificate of occupancy issued for the Improvements or
        the Building, (b) any condominium master deed or declaration of trust,
        offering plan, by-laws, house rules, and other requirements, instruments
        or declarations (collectively the "CONDOMINIUM DOCUMENTS") now or
        hereafter ratified by any condominium association or equivalent or the
        trustees of any condominium association (collectively, the "CONDOMINIUM
        ASSOCIATION") having jurisdiction over the Premises, (c) any private
        covenants, conditions or restrictions or reciprocal easement agreements
        (collectively, the "CC&R") which may now or hereafter be recorded
        encumbering the Development or (d) any liquor license issued with
        respect to the Club, and shall, upon notice from Landlord, discontinue
        any use of the Premises which is in violation of law or of said
        certificate of occupancy, or is a violation of the Condominium
        Documents, the CC&R or said liquor license. Notwithstanding the
        foregoing, after the date hereof Landlord shall not amend or modify any
        existing CC&R or create new CC&R's or Condominium Documents which
        materially adversely affect any of Tenant's rights hereunder or
        materially increase its

<PAGE>   22

        obligations hereunder (individually and collectively, a "CONSENT
        REQUIRED SENIOR INTEREST") unless Tenant approves the same. If Tenant
        has any objection to a Consent Required Senior Interest, Tenant shall
        notify Landlord of such objection (setting forth such objection in
        reasonable detail) within fifteen (15) business days after such Consent
        Required Senior Interest is delivered to Tenant. If Tenant fails to
        deliver a notice of objection within such period, such Consent Required
        Senior Interest shall be deemed approved by Tenant.

                (2) Tenant shall comply with any law or directive of any
        governmental authority having jurisdiction which by reason of the nature
        of Tenant's particular use or occupancy shall impose any duty upon
        Tenant or Landlord with respect to the Premises or with respect to the
        use or occupancy thereof.

                (3) Tenant shall not do or permit to be done anything which will
        increase the cost of (unless Tenant pays such increased cost) or which
        will invalidate any fire, extended coverage or any other insurance
        policy covering the Improvements and/or property located therein or the
        Building. In the event Tenant does or permits anything to be done which
        increases the cost of any insurance maintained by Landlord hereunder,
        Tenant shall promptly, upon demand, as Landlord's sole remedy for such
        increase (but without limiting any other remedies that may be available
        to Landlord if the cause of such increase is otherwise violative of any
        provisions of this Lease), reimburse Landlord for such increase. Tenant
        shall not do or permit anything to be done in or about the Premises
        which will in any way obstruct or interfere with the rights of other
        tenants or occupants of the Development, or use or allow the Premises to
        be used for any unlawful purpose, nor shall Tenant cause, maintain or
        permit any nuisance in, on or about the Premises; Landlord, however,
        acknowledges that certain noise and vibration are incident to Tenant's
        use of the Premises, and that to the extent the same shall not exceed
        noise levels generated by other athletic clubs in similar types of
        buildings and shall not otherwise exceed the legally permissible decibel
        levels, the same shall not constitute a nuisance for the purposes
        hereof.

                (4) Tenant shall not commit or suffer to be committed any waste
        in or upon the Premises.

                (5) Tenant shall be responsible for obtaining, at Tenant's sole
        cost and expense, all required licenses and/or permits authorizing the
        use of the Premises for an athletic club and Tenant's cooking operations
        with respect to the Club subject to and in accordance with this Lease
        and any other use permitted under this Lease being conducted in the
        Premises. Tenant shall furnish Landlord with copies of all such licenses
        and permits so that Landlord may be kept fully informed in respect
        thereof.

8.3     Hazardous Materials.

                (1) Tenant shall not use or permit any hazardous, toxic or
        radioactive materials ("HAZARDOUS MATERIALS") to be brought upon, kept
        or used in or about the Premises, the Improvements or any portion of the
        Development by Tenant, its agents,

<PAGE>   23

        employees or contractors, unless such Hazardous Materials are necessary
        or useful to and customarily used in Tenant's business and will be used,
        kept and stored in a manner that complies with all laws regulating any
        such Hazardous Materials. In addition, Tenant shall be entitled to use
        general office supplies, normal janitorial supplies, supplies used in
        maintaining its equipment and swimming pool supplies in a manner that
        complies with all laws regulating their use. If Tenant breaches the
        covenants and obligations set forth herein or, if the presence of
        Hazardous Materials on, in or about the Premises, the Improvements or
        any other portion of the Development caused or permitted by Tenant, its
        agents, employees or contractors results in contamination of the
        Premises, the Improvements or any other portion of the Development, then
        Tenant shall indemnify, defend and hold Landlord and the owner(s) and
        operator(s) of the Common Areas free and harmless from and against any
        and all claims, judgments, damages, penalties, fines, costs, liabilities
        and losses (including diminution in the value of the Premises and/or the
        Common Areas, damages for the loss or restriction on use of rentable or
        useable space or of any amenity of the Premises, the Improvements or any
        other portion of the Development, and sums paid in settlement of claims,
        attorneys' fees and costs, consultants' fees and expert fees) which
        arise during or after the Term as a result of such contamination. This
        indemnification by Tenant of Landlord and the owner(s) and operator(s)
        of the Common Areas, includes any and all costs incurred in connection
        with any investigation of site conditions or any clean up, remedial,
        removal or restoration work required by any federal, state or local
        governmental agency or political subdivision because of the presence of
        such Hazardous Materials in, on or about the Premises, the Improvements
        or any portion of the Development, including the soil or ground water on
        or under the Development. The provisions of this Section 8.3(i) shall
        survive the expiration or earlier termination of this Lease.

                (2) Landlord shall not cause or permit any Hazardous Materials
        to be brought upon, kept or used in or about the Premises or any other
        portion of the Development by Landlord, its agents, employees or
        contractors unless such Hazardous Materials are used, kept and stored in
        a manner that complies with all laws regulating such Hazardous
        Materials. If Landlord breaches the covenants and obligations set forth
        herein or if contamination of the Premises or any other portion of the
        Development by Hazardous Materials otherwise occurs which is caused by
        Landlord or its agents, then Landlord shall indemnify, defend and hold
        Tenant free and harmless from and against any and all claims, judgments,
        damages (but not consequential damages), penalties, fines, costs and
        liabilities and losses (including any diminution in the value of the
        Club, and sums paid in settlement of claims, attorneys' fees and costs,
        consultants' fees and expert fees) which arise during or after the Term
        as a result of such contamination. This indemnification by Landlord of
        Tenant includes any and all costs incurred in connection with any
        investigation of site conditions or any clean up, remedial, removal or
        restoration work required by any federal, state or local governmental
        agency or political subdivision because of the presence of such
        Hazardous Materials in or about the Premises. The provisions of this
        Section 8.3(ii) shall survive the expiration or earlier termination of
        this Lease.

<PAGE>   24

8.4     Restrictions.

        So long as this Lease remains in full force and effect and Tenant is
operating a Club and facilities related to the operation of such Club in at
least seventy-five percent (75%) of the Premises subject to Temporary Closures
(as defined herein), Landlord hereby agrees that neither Landlord, nor any
individual(s), firm or corporation controlled by, controlling or under common
control with Landlord shall lease to, sublease to, consent to an assignment or
sublease to, operate, own or become financially interested in, (i) any other
Club within the Development, provided that an athletic club may be operated
within the Primary Hotel not to exceed 840 square feet of Floor Area in the
aggregate, or (ii) any tenant or occupant of the Development which provides spa
services or operates a beauty salon within the Development provided Tenant is
providing spa services in the Premises and/or operating a beauty salon in the
Premises (a) subject to and in accordance with this Lease and subject to
Temporary Closures (after a reasonable period of time after the Commencement
Date to prepare the Premises for same) and (b) in a manner consistent with the
typical standard of operation with respect thereto of a World Class Luxury Hotel
(as defined herein) (the "HOTEL STANDARD"). For purposes of this Lease, "WORLD
CLASS LUXURY HOTEL" means a five star luxury urban hotel in the United States as
understood in the hotel industry.

9.      Notices.

        All notices, requests, consents, approvals, determinations and other
communications required or permitted to be given hereunder must be in writing
and may be given only by personal delivery, overnight delivery, facsimile
transmission or by mail, and if given by mail shall be deemed sufficiently given
only if sent by registered or certified mail, return receipt requested, to the
following address of the party to receive such notice. Notices shall be deemed
received if sent in compliance with the aforesaid requirements, upon actual
receipt for notices given by personal delivery or facsimile and upon the earlier
of actual receipt or three (3) business days after deposit of any notice in the
United States mail if sent by registered or certified mail.

          If to Landlord:                   c/o Millennium Partners
                                            1995 Broadway, 3rd Floor
                                            New York, New York 10023
                                            Attention:  Chief Financial Officer
                                            Fax:  (212) 579-0662

          With a copy to:                   Battle Fowler LLP
                                            75 East 55th Street
                                            New York, New York 10022
                                            Attention: Eric R. Landau, Esq.
                                            Fax: (212) 856-7805

          If to Tenant:                     Washington D.C. Sports Club, Inc.
                                            11100 Santa Monica Boulevard
                                            Suite 300
                                            Los Angeles, California 90025
                                            Attention: Real Estate Dept.
                                            Fax: (310) 479-8879

<PAGE>   25

          With a copy to:                   Resch Polster Alpert & Berger LLP
                                            10390 Santa Monica Boulevard
                                            Fourth Floor
                                            Los Angeles, California 90025
                                            Attention:  Ronald M. Resch, Esq.
                                            Fax:  (310) 552-3209

        Either party may specify a different address for notice purposes by
notice to the other pursuant to this Article 9.

10.     Brokers.

        Landlord and Tenant each warrant to the other that such party has not
had any dealings with any real estate broker or agent in connection with the
negotiation of this Lease, and that such party knows of no real estate broker or
agent who is or might be entitled to a commission in connection with this Lease.
If Landlord or Tenant has dealt with any person or real estate broker or agent
with respect to the transaction contemplated by this Lease, the party so dealing
with such person or broker or agent shall be solely responsible for the payment
of any fee due such person or broker or agent and such party shall hold the
other free and harmless from and against any liability in respect thereto,
including attorneys' fees and costs.

11.     Holding Over.

        If Tenant holds over after the expiration or earlier termination of this
Lease without the express consent of Landlord, Tenant shall become a tenant at
sufferance only, at a rental rate equal to one hundred twenty-five percent
(125%) of the Monthly Base Rent in effect upon the date of such expiration or
earlier termination (prorated on a daily basis), plus one hundred percent (100%)
of the other elements of Rent, and otherwise subject to the terms, covenants and
conditions herein specified, so far as applicable. Acceptance by Landlord of
Rent after such expiration or earlier termination shall not result in a renewal
of this Lease. The foregoing provisions of this Article 11 are in addition to
and do not affect Landlord's right of re-entry or any rights of Landlord
hereunder or as otherwise provided by law.

12.     Taxes.

12.1    Payment. Commencing upon the Commencement Date, Tenant shall be liable
        for and shall pay to Landlord, as additional rent and in the manner
        hereinafter provided, all (i) real property taxes, (ii) personal
        property taxes, (iii) general and special assessments, (iv) water and
        sewer taxes, bonds, assessments and related charges, (v) excises,
        levies, license and permit fees and (vi) all other governmental charges,
        general and special, ordinary and extraordinary, of any kind and nature
        whatsoever, which at any time during or applicable to the Term may be
        assessed, levied, confirmed, imposed upon, or become due and payable out
        of or in respect of, or become a lien on the Premises, the Improvements
        or any portion thereof (collectively "TAXES"). Tenant's payment of Taxes
        shall be payable by Tenant in the same number of installments as taxes
        are due from Landlord to the applicable taxing authorities and shall be
        due from Tenant to Landlord thirty (30) days prior to the date such
        taxes, or installments thereof, are due from

<PAGE>   26

        Landlord to the taxing authorities. If during the Term, Taxes are
        required to be paid to the taxing authorities in full or in monthly,
        quarterly or other installments, on any other date or dates than as
        presently required, then, the Taxes shall be correspondingly accelerated
        or revised so that same are due thirty (30) days before the date such
        Taxes, or installments thereof, are due from Landlord to the taxing
        authorities. Notwithstanding the foregoing, if Landlord is obligated to
        make monthly escrows of Taxes to any Senior Interest Holder and as a
        result thereof, Landlord requires all tenants of the Building under
        leases with Landlord to make escrows of Taxes, then in lieu of the
        manner of payment referred to above, on the first day of the month
        following the furnishing to Tenant of a statement of Taxes, Tenant shall
        pay to Landlord a sum equal to 1/12th of the payment of Taxes shown
        thereon to be due for such fiscal year for real estate tax purposes
        adopted by the applicable taxing authority then imposing taxes (the "TAX
        YEAR") multiplied by the number of months of the Term then elapsed since
        the commencement of such Tax Year. Tenant shall continue to pay to
        Landlord a sum equal to 1/12th of the payment of Taxes shown on such
        statement on the first day of each succeeding month until the first day
        of the month following the month in which Landlord shall deliver to
        Tenant a new statement of Taxes. If the escrows of Taxes required to be
        made by Landlord with any Senior Interest Holder are required to be made
        other than monthly, then the obligations of Tenant referred to in the
        immediately preceding two (2) sentences shall be appropriately modified
        so that Tenant shall make the payment of Taxes to Landlord in the same
        number of installations as Landlord is required to make to such Senior
        Interest Holder. In the event the escrows of Taxes required to be made
        by Landlord with any Senior Interest Holder are held in an interest
        bearing account, then Tenant's payment of Taxes shall be reduced by
        Tenant's Share of the actual interest received by Landlord in connection
        therewith. If Landlord shall not furnish to Tenant a statement of Taxes
        prior to the commencement of such Tax Year, then Tenant shall continue
        to make monthly installment payments based upon the previous Tax Year's
        statement of Taxes until Landlord shall furnish a new statement of Taxes
        with respect to the then current Tax Year. If Landlord furnishes a
        statement of Taxes for a Tax Year subsequent to the commencement
        thereof, promptly after the statement of Taxes is furnished to Tenant,
        Landlord shall give notice to Tenant stating whether the amount
        previously paid by Tenant to Landlord for the current Tax Year was
        greater or less than the installments of Tenant's payment of Taxes for
        the current Tax Year, and (1) if there shall be a deficiency, Tenant
        shall pay the amount thereof within thirty (30) days after demand
        therefor, or (2) if there shall have been an overpayment, such excess
        shall be refunded to Tenant within thirty (30) days of the rendition of
        the aforementioned statement to Tenant. If there shall be any increase
        or decrease in Taxes for any Tax Year, whether during or after such Tax
        Year, then Landlord shall furnish a revised statement of Taxes for such
        Tax Year, and Tenant's payment of Taxes for such Tax Year shall be
        adjusted and paid or credited, as the case may be, substantially in the
        same manner as provided in the preceding sentence. If the Tax Year
        established by the applicable taxing authority shall be changed, any
        Taxes for the Tax Year prior to such change which are included within
        the new Tax Year and which were the subject of a prior statement of
        Taxes shall be apportioned for the purpose of calculating Tenant's
        payment of Taxes payable with respect to such new Tax Year.

<PAGE>   27

        If a separate real property tax bill is not issued for the Premises at
        any time during the Term, but Landlord receives a tax bill for a larger
        parcel of real property including the Premises, Landlord shall bill
        Tenant for a pro rata share of such taxes. Landlord shall provide Tenant
        with an invoice therefor together with a detailed explanation of any
        proration, which proration shall be made on the basis of Tenant's Share
        of the ratio between Floor Area of the Premises and the total square
        feet of the Floor Area of the other tenantable portions of the taxed
        unit of which the Premises form part. If Landlord shall receive any
        bills, assessments or other official notices regarding any such taxes or
        other charges, it shall promptly forward the same to Tenant, but an
        inadvertent failure (or failures) to do so shall not be deemed a breach
        hereof. All such taxes, assessments, charges and the like billed
        directly to Tenant or passed on to Tenant by Landlord and paid by Tenant
        pursuant to the provisions of this Section 12.1 shall be excluded from
        Common Area Expenses or Operating Expenses, as applicable. All taxes
        becoming a lien upon the Premises or any portion thereof during the
        first and last Tax Year shall be prorated between Landlord and Tenant to
        the first and last day of the Term, respectively. Upon Tenant's request,
        Landlord shall furnish to Tenant proof reasonably satisfactory to Tenant
        of payment of the matters referred to in this Article. If the Premises
        are separately assessed for real property taxes, Tenant shall have the
        right, following notice to Landlord, to protest, contest or object to
        the amount or validity of any such taxes, impositions or assessments;
        provided, however, that this right to contest shall not be deemed or
        construed to relieve, modify or extend Tenant's obligation to pay any
        such tax, imposition or assessment before delinquency thereof unless
        Tenant has provided a bond or other security satisfactory to Landlord.
        Tenant shall indemnify and defend Landlord and save Landlord harmless
        from all costs, liabilities and expenses incurred in connection with
        such proceedings.

12.2    Trade Fixtures. Tenant shall be liable for and shall pay, before
        delinquency, all taxes levied against Trade Fixtures.

12.3    Protest. Tenant shall have the right, at its sole cost, to request
        Landlord, by notice to Landlord given not less than ten (10) days before
        the last date for filing any necessary protest or petition or taking any
        other necessary action, to initiate and prosecute any proceeding for the
        purpose of reducing the assessed valuation of the Premises for tax
        purposes. In the event that Tenant in good faith shall request Landlord,
        pursuant to the preceding sentence, to initiate and prosecute any
        proceeding, Landlord shall, subject to the requirements imposed by any
        mortgage of Landlord's interests in the Development, at Tenant's sole
        expense, take all steps reasonably necessary to commence such proceeding
        and thereafter shall diligently prosecute the same to completion. Any
        actual out-of-pocket costs, including reasonable attorneys' fees and
        costs, incurred by Landlord in connection with any such proceeding
        brought at Tenant's request shall be payable upon demand, as Additional
        Rent, by Tenant to Landlord. Any refund of moneys received by Landlord
        resulting from such proceeding attributable to the Premises and relating
        to real property taxes which may have been paid by Tenant shall be
        refunded by Landlord to Tenant, together with all accrued interest which
        is awarded thereon and received by

<PAGE>   28

        Landlord; provided that if any such refund shall be made with respect to
        Landlord's property other than the Premises, then Tenant's right to the
        same shall be limited to its pro rata portion thereof, after payment or
        credit first (to the extent such monies are received by Landlord from
        the taxing authority), to Tenant for Landlord's costs previously paid by
        Tenant to Landlord as above provided and second (after all costs
        incurred by Landlord have been recovered), for any other actual
        out-of-pocket costs, including reasonable attorneys' fees and costs,
        incurred by Tenant in connection with any such proceeding. Tenant's
        rights to refunds under this Section 12.3, if any, shall survive the
        expiration of this Lease.

12.4    Definition. As used in this Article 12, the term "REAL PROPERTY TAXES"
        shall include any form of assessment, license fee, license tax, business
        license fee, commercial rental tax, levy, charge, tax or similar
        imposition, imposed by any authority having the direct power to tax,
        including any city, county, state or federal government, or any school,
        agricultural, lighting, drainage or other improvement or special
        assessment district thereof, as against any legal or equitable interest
        of Landlord in the Premises, including, but not limited to, the
        following: any tax on Landlord's "right" to rent or "right" to other
        income from the Premises or as against Landlord's business of leasing
        the Premises; any assessment, tax, fee, levy or charge in substitution,
        partially or totally, of any assessment, tax, fee, levy or charge
        previously included, within the definition of real property taxes
        ("IN-LIEU TAX"); any assessment, tax, fee, levy or charge allocable to
        or measured by the area of the Premises or the rent payable hereunder
        ("RECEIPTS TAX"), including any gross income tax or excise tax levied by
        the state, city or federal government, or any political subdivision
        thereof, with respect to the receipt of such rent, or upon or with
        respect to the possessing, leasing, operating, managing, maintaining,
        altering, repairing, using or occupying by Tenant of the Premises or any
        portion thereof; any assessment, tax, fee, levy or charge upon this
        transaction or upon any document to which Tenant is a transferring party
        creating or transferring an interest or an estate in the Premises; any
        assessment, fee, levy or charge by any governmental agency related to
        any transportation plan, fund or system instituted within the geographic
        area of which the Premises are a part; and reasonable legal and other
        professional fees, costs and disbursements incurred in connection with
        proceedings to reasonably contest, determine or reduce real property
        taxes. Notwithstanding any provision of this Article 12 expressed or
        implied to the contrary, Tenant shall not be required to pay any
        documentary transfer taxes or recording taxes incurred by Landlord or
        Landlord's federal or state income, franchise, inheritance or estate
        taxes or any local income, franchise, inheritance or estate taxes, or
        other taxes in lieu thereof, except for any In-Lieu Tax or any Receipts
        Tax.

13.     Condition of Premises.

13.1    Landlord's Work. Landlord hereby agrees to cause to be completed those
        acts and/or improvements described as the Landlord's Work in the Work
        Letter within the time(s) set forth therein, subject to Force Majeure or
        any Tenant Delay. Landlord hereby agrees that all work to be performed
        by Landlord pursuant to the Work Letter shall be constructed by Landlord
        or Landlord's contractor in a good and workmanlike first-class

<PAGE>   29

        manner and in full compliance with all governmental regulations,
        ordinances and laws existing at the time of construction. Landlord
        agrees to abide by its obligations, if any, under the CC&R. By taking
        possession of the Premises upon completion of the Landlord's Work and
        for commencement of the construction of the Improvements, Tenant shall
        be deemed to have: (i) acknowledged that Landlord's Work is
        substantially complete and is accepted "as is" and "with all faults";
        (ii) accepted the Premises as suitable for the purposes for which the
        Premises are leased; and (iii) acknowledged that the Premises are in a
        good and satisfactory condition, except as otherwise expressly provided
        in the Work Letter. Landlord hereby disclaims, and Tenant hereby waives
        to the full extent permitted by law, any implied warranty that the
        Premises are suitable for Tenant's intended commercial purpose, and any
        and all other implied warranties (whether arising by virtue of statute,
        case law or otherwise). The foregoing provisions shall not be construed
        to relieve Landlord from its obligations which are expressly set forth
        in this Lease.

13.2    Design Changes. In order to provide Landlord with the necessary
        flexibility in the planning and organizing of the Building, Tenant
        agrees that the design of the Building (including the location of the
        demising walls for the Premises) and elements of Landlord's Work shall
        be subject to such changes as Landlord shall deem to be necessary or
        beneficial to the Building or its tenants; provided, however, that the
        resulting Premises shall be substantially equivalent for Tenant's
        purposes as prior to such changes.

14.     Alterations.

14.1    Landlord's Approval. From and after the later of (i) the Commencement
        Date, or (ii) completion of the Improvements, Tenant, without obtaining
        Landlord's prior consent, may only make alterations, additions or
        improvements in or to the Premises which (a) are nonstructural in
        nature, and (b) do not affect the exterior of the Premises or other
        exterior portions of the Improvements (but only to the extent generally
        visible from the Common Areas). All alterations, additions and
        improvements other than those described in clauses (a) and (b) hereof
        shall require Landlord's prior consent. Before proceeding with any
        alteration, addition or improvement which requires Landlord's prior
        consent hereunder, Tenant shall submit to Landlord plans and
        specifications, including any applicable mechanical, electrical and
        plumbing drawings, for the work to be done, which plans and
        specifications shall require Landlord's approval. If Landlord shall
        disapprove of any of Tenant's plans and specifications, Tenant shall be
        advised of the reasons for such disapproval.

14.2    Requirements. Tenant agrees to provide Landlord with notice of all
        alterations, additions or improvements Tenant intends to make to the
        Premises whether or not they require Landlord's prior consent as
        provided above. Tenant shall cause Tenant's contractor to obtain on
        behalf of Tenant and at Tenant's sole cost and expense all necessary
        governmental permits and certificates for the commencement and
        prosecution of any alteration, addition or improvement and for final
        approval thereof upon completion. All such work shall be done at such
        times and in such manner as Landlord may from time to time designate.
        Tenant covenants and agrees that all work done by

<PAGE>   30

        Tenant shall be performed in full compliance with the Condominium
        Documents, the CC&R, in full compliance with all laws, rules, orders,
        ordinances, regulations and requirements of all governmental agencies,
        offices, and boards having jurisdiction, and in full compliance with the
        rules, regulations and requirements of any insurance rating bureau
        having jurisdiction of the Premises or the Building. Before commencing
        any work, Tenant shall give Landlord at least ten (10) days notice of
        the proposed commencement of such work in order to provide Landlord with
        an opportunity to post notices of nonresponsibility. Tenant further
        covenants and agrees that any mechanic's lien recorded against the
        Premises or the Building for work claimed to have been done for, or
        materials claimed to have been furnished to Tenant, will be discharged
        by Tenant, by bond or otherwise, as provided in Article 16 hereof. All
        alterations, additions or improvements upon the Premises made by either
        party, including all wallcovering, built-in cabinetry, paneling and the
        like, shall, at Landlord's option, upon the expiration or earlier
        termination of this Lease become the property of Landlord, and shall, at
        such time, remain upon, and be surrendered by Tenant with the Premises,
        as a part thereof. Notwithstanding anything to the contrary contained in
        this Lease, in connection with Tenant seeking to obtain any permit,
        certificate and/or approval from the Boston Redevelopment Authority
        ("BRA") with respect to any alteration, addition or improvement, Tenant
        shall furnish Landlord with copies of all notices and documents
        submitted to the BRA so that Landlord may be kept fully informed in
        respect thereof, Landlord may, at its election, reasonably participate
        in the same and at the election of Landlord, Tenant shall retain, at
        Tenant's sole cost and expense, a Person designated by Landlord and
        approved by Tenant to obtain any such permit, certificate and/or
        approval from the BRA, provided that any such designation shall not
        cause a delay (in more than a de minimis manner) in the obtaining of any
        such permit, certificate and/or approval by Tenant, it being understood
        and agreed that Landlord shall not be liable to Tenant in connection
        with such participation of Landlord and the retaining of such Person by
        Tenant in connection with the obtaining of any such permit, certificate
        and/or approval.

14.3    Removal. All articles of personal property and movable furniture,
        including Trade Fixtures and any other of Tenant's furniture and
        equipment which are installed by Tenant at its expense in the Premises
        shall be and remain the property of Tenant and may be removed by Tenant
        at any time during the Term provided Tenant repairs any damage caused by
        such removal. If Tenant shall fail to remove all of its effects from the
        Premises upon the expiration or earlier termination of this Lease, for
        any cause whatsoever, Landlord may, at it option, remove the same in any
        manner that Landlord shall choose, and store said effects without
        liability to Tenant for loss thereof so long as Landlord exercises
        reasonable care in doing so. In such event, Tenant agrees to pay
        Landlord upon demand any and all reasonable expenses actually paid to
        third parties incurred in such removal, including court costs and
        attorneys' fees and costs and storage charges on such effects for any
        length of time that the same shall be in Landlord's possession. Landlord
        may, at its option, upon at least ten (10) business days' prior notice
        to Tenant of the date, time and place of the sale of such effects, or
        any of the same, sell any such affects at a private sale and without
        legal process, for such price as Landlord may obtain and apply the
        proceeds of such sale to any amounts due under this Lease from Tenant to
        Landlord

<PAGE>   31

        and to the expense incident to the removal and sale of said effects. Any
        rights of Landlord under this Section 14.3 shall be subject to the
        rights of lienholders with a security interest in Tenant's personal
        property pursuant to Section 1.2 hereof.

15.     Repairs.

15.1    Tenant's Obligations. Except as otherwise hereinafter provided, Tenant,
        at Tenant's sole cost and expense, shall (i) keep, maintain (including
        necessary replacements) and preserve the Property and every portion
        thereof, all equipment, facilities and amenities used in connection
        therewith and all items located on or about the Property, including
        elevators servicing the Premises, plumbing, mechanical systems, floors
        and utility systems (including HVAC system) and all portions thereof in
        first-class condition and repair, (ii) when and if needed, at Tenant's
        sole cost and expense (subject to the damage and destruction provisions
        herein), make all repairs to the Property and every portion thereof
        including the interior walls but excluding the structural columns
        described in Section 15.2 hereof, (iii) repaint the interior and the
        exterior of the Improvements as necessary, (iv) replace all broken
        window glass, and (v) repair all facilities except for the structural
        elements described in Section 15.2 hereof. Tenant's obligation to keep,
        maintain, preserve and repair the Premises shall specifically extend to
        the cleanup and removal of all Hazardous Materials to the extent
        required by Tenant in Article 8 hereof. Tenant shall, upon the
        expiration or earlier termination of the Term, surrender the Property to
        Landlord in its condition as of the commencement of Tenant's operation
        of the Club for member use, usual and ordinary wear and tear and any
        alterations, additions and improvements permitted under this Lease
        excepted, and except as otherwise provided in Articles 21 and 22 hereof.
        Landlord shall have no obligation to alter, remodel, improve, repair,
        decorate or paint the Property or any part thereof, except as provided
        in Section 15.2 hereof and except for cleanup and removal of Hazardous
        Materials to the extent required in Article 8 hereof. The parties hereto
        affirm that Landlord has made no representations to Tenant respecting
        the condition of the Property except as specifically set forth in
        Article 13 hereof. In addition, the parties hereto affirm that Landlord
        shall have absolutely no obligation to keep, maintain or repair any
        portion of the interior of the Premises except as herein expressly
        provided. Landlord shall be responsible for repairs to the Property
        caused by the negligence or willful misconduct of Landlord or its
        employees, agents, or contractors. Notwithstanding the foregoing, to the
        extent that insurance carried by Landlord or Tenant provides coverage
        for the cost of any maintenance or repair or replacement which is
        Tenant's obligation pursuant hereto, Tenant shall be entitled to all
        benefits of such insurance.

15.2    Landlord's Obligations. Landlord shall (subject to reimbursement
        therefor pursuant to Section 7 hereof) keep, maintain and repair, or
        cause to be kept, maintained and repaired, the Building (exclusive of
        the Property) and the Common Areas in a first-class manner and be
        responsible for the repair and maintenance of the structural elements of
        the Development except to the extent that the necessity for any repair
        or maintenance shall be attributable to alterations performed by or
        through Tenant or by the negligence or willful misconduct of Tenant or
        its employees, agents, contractors, licensees or invitees.

<PAGE>   32

        Notwithstanding the foregoing, Landlord shall (without being subject to
        reimbursement therefor pursuant to Section 7 hereof) repair all defects
        in Landlord's construction of the Club (if and to the extent expressly
        provided in the Work Letter) and Common Areas. Landlord shall grant
        easements and/or grant rights of way to the extent necessary for utility
        companies to bring those services identified in the Work Letter to the
        Premises.

16.     Liens.

        Except with respect to a security agreement, financing statement,
financing lien or other instrument securing the financing of Trade Fixtures and
Tenant's other furniture, fixtures, equipment and improvements approved by
Landlord, Tenant shall not permit to be recorded against the Premises or any
portion of the Development or against Tenant's leasehold interest in the
Premises, any mechanics', materialmen's or other liens, including any state,
federal or local Hazardous Material clean-up liens for which Tenant is
responsible under Article 8 hereof. Landlord shall have the right at all
reasonable times to post and keep posted on the Premises any notices which it
deems necessary for protection from such liens. If any such lien is recorded,
and is not discharged by Tenant by bond or otherwise within thirty (30) days
after the recording thereof, Landlord may, without waiving its rights and
remedies based on such breach of Tenant and without releasing Tenant from any of
its obligations, cause such liens to be released by any means it shall deem
proper, including payment in satisfaction of the claim giving rise to such lien.
Tenant shall pay to Landlord on demand, upon notice by Landlord, any sums
incurred by Landlord to remove such liens, together with Landlord's reasonable
attorneys' fees and costs and other expenses incurred by Landlord in connection
with obtaining such release and interest on such sums at the lesser of (i) the
rate of twelve percent (12%) per annum and (ii) the highest rate then legally
permissible from the date of such payment by Landlord. Tenant expressly reserves
the right to contest the validity of any such liens and to post bonds suitable
to cause the release of any such liens so long as (a) prior to any such contest
(and no later than thirty (30) days after such lien has been filed) Tenant at
its sole expense provides to Landlord a bond indemnifying against such lien that
complies with all applicable laws, and (b) Tenant contests such lien diligently
and in good faith; provided, however, the foregoing right of Tenant to contest
any such lien shall not impair or otherwise affect Tenant's indemnification and
other obligations with respect to such lien.

17.     Entry by Landlord.

        During normal business hours upon giving at least one (1) business day's
prior notice to Tenant (except in the case of emergencies, in which case no
notice shall be necessary), Landlord reserves and shall at any and all
reasonable times have the right to enter the Premises and the Improvements to
(i) inspect the same, (ii) show the Premises and the Improvements to prospective
lenders or purchasers (and prospective tenants during the last twelve (12)
months of the Term), (iii) post notices of nonresponsibility, and (iv) alter,
improve or repair the Common Areas or any other portion of the Development, all
without being deemed guilty of any eviction of Tenant or breach of quiet
enjoyment and without abatement or reduction of rent. Landlord shall provide
Tenant with the opportunity to escort Landlord with regard to any entry pursuant
hereto (except in case of an emergency). Landlord shall indemnify Tenant and
hold Tenant harmless from and against any and all claims, damages, losses or
costs (excluding consequential

<PAGE>   33

damages) actually incurred by Tenant as a result of Landlord's entry upon the
Premises pursuant to this Article 17 to the extent not covered by insurance
carried by Tenant or required to be carried by Tenant hereunder. Landlord may,
in order to carry out such purposes, erect scaffolding and other necessary
structures if reasonably required by the character of the work to be performed,
provided that to the extent within Landlord's reasonable control, the business
of Tenant shall be interfered with as little as is reasonably practicable (it
being agreed that Landlord shall not be required to employ overtime or premium
labor). It is understood and agreed that no provision of this Lease shall be
construed as obligating Landlord to perform any repairs, alterations or
decorations except as otherwise expressly agreed herein by Landlord.

18.     Utilities and Services.

18.1    From and after Substantial Completion of Landlord's Work, Tenant agrees
        to pay all charges for utilities and services used by it in the
        Premises, including, but not limited to, gas, electricity, telephone,
        sanitary sewer, storm drainage, water, and trash collection. Landlord
        shall supply hot water for heat as described in the Work Letter to such
        distribution facilities designated in the Design Development Plans (as
        defined in the Work Letter). Tenant shall maintain in good working order
        and make all necessary repairs and replacements to such distribution
        facilities to the extent the same are located within or exclusively
        service the Premises, at Tenant's own cost and expense. Such hot water
        shall be supplied to the Premises at such times and periods as Tenant
        shall reasonably require for conducting its business at the Premises in
        the manner contemplated by this Lease and the Work Letter (not to exceed
        eighteen (18) hours per day). Landlord shall supply (or cause to be
        supplied) chilled water to the Premises as described in the Work Letter
        at such hours (not to exceed eighteen (18) hours per day) as Tenant may
        designate. Within thirty (30) days following demand therefor, Tenant
        shall pay to Landlord, as Additional Rent, Landlord's then established
        charges which shall not exceed one hundred percent (100%) of Landlord's
        out-of-pocket costs for the quantities of such hot water and condenser
        water (except as otherwise specifically provided in the Work Letter) as
        Tenant may consume, as shown on the meter(s) installed by Landlord (but
        maintained by Tenant). Subject to Landlord's obligation to make utility
        easements and rights of way available pursuant to the provisions of
        Section 15.2 hereof and to bring utility lines to the Premises pursuant
        to Section 1.1 hereof, Landlord shall not be liable for damages or
        otherwise for any failure or interruption of any utility or other
        service furnished to the Premises, unless such failure shall be due to
        the negligence or willful misconduct of Landlord, its agents, licensees
        or employees and is not covered by rent abatement and business
        interruption insurance carried or required to be carried by Tenant.
        Subject to Landlord's obligation to make utility easements and rights of
        way available pursuant to the provisions of Section 15.2 hereof and to
        bring utility lines to the Premises pursuant to Section 1.1 hereof,
        Landlord does not warrant that any of the utilities and services
        mentioned herein will be free from interruptions caused by repair,
        renewals, improvements, alterations, strikes, lockouts, accidents,
        inability of Landlord to obtain fuel or supplies, or any other cause or
        causes beyond the reasonable control of Landlord. Any such interruption
        of service shall never be deemed an eviction or disturbance of

<PAGE>   34

        Tenant's use and possession of the Premises, or any part thereof, or
        give Tenant any right to terminate this Lease.

18.2    Tenant agrees that it will not install any equipment which will exceed
        or overload the capacity of any utility facilities, and that if any
        equipment installed by Tenant shall require additional utility
        facilities in excess of those specified in the Work Letter, the same
        shall be installed at Tenant's expense in accordance with plans and
        specifications to be approved in writing by Landlord in accordance with
        the standards set forth in Article 14 hereof.

19.     Indemnification.

19.1    Tenant's Indemnity. Notwithstanding (i) the limits of Tenant's insurance
        specified in Section 20.1 hereof and (ii) whether Tenant's insurance
        shall be in full force and effect, Tenant shall indemnify, defend and
        hold Landlord and the Condominium Association (if applicable) harmless
        from all costs, expenses, penalties, claims, demands and liabilities
        ("CLAIMS") arising from Tenant's use of the Property or the conduct of
        its business or from any activity, work, or thing done by Tenant in or
        about the Premises. Tenant shall further indemnify, defend and hold
        Landlord and the Condominium Association (if applicable) harmless from
        all Claims arising from any Default, or arising from any act, neglect,
        fault or omission of Tenant or of its agents, employees or licensees in
        the Premises, or arising from any act, neglect, fault or omission of
        Tenant's invitees in the Premises, and from and against all costs,
        attorneys' fees and costs, expenses and liabilities incurred in
        connection with such Claim or any action or proceeding brought thereon,
        but this indemnity shall not extend to Claims to the extent resulting
        from negligent acts or omissions or willful misconduct of Landlord or
        the Condominium Association, as applicable, their respective employees,
        agents, licensees or invitees, to consequential or punitive damages or
        to Claims that are as applicable covered by property insurance carried
        by Landlord or the Condominium Association or required to be carried by
        Landlord hereunder. In case any action or proceeding shall be brought
        against Landlord and/or the Condominium Association, as applicable, by
        reason of any such Claim, Tenant, upon notice from Landlord and/or the
        Condominium Association, as applicable, shall defend the same at
        Tenant's expense by counsel approved by Landlord and/or the Condominium
        Association, as applicable. Tenant, as a material part of the
        consideration to Landlord, hereby assumes all risk of damage to property
        or injury to persons in, upon or about the Property from any cause
        whatsoever, except that for which Landlord may be liable pursuant to the
        indemnity contained in Section 19.2 hereof.

19.2    Landlord's Indemnity. Landlord shall indemnify, defend and hold Tenant
        harmless from any and all Claims arising from any activity, work, or
        thing done by Landlord in or about the Development (exclusive of the
        Premises). Landlord shall further indemnify, defend and hold Tenant
        harmless from all Claims arising from any breach or default in the
        performance of any obligation to be performed by Landlord under the
        terms of this Lease or arising from any act, neglect, fault or omission
        of Landlord or of its licensees, invitees, agents or employees within
        the Development (exclusive of the Premises) (provided, however, it is
        agreed that tenants or other occupants of the

<PAGE>   35

        Development and their respective licensees, invitees, agents or
        employees shall not be deemed to be Landlord's licensees, invitees,
        agents or employees) and from and against all costs, attorneys' fees and
        costs, expenses and liabilities incurred in connection with such Claims
        or any action or proceeding brought thereon, but this indemnity shall
        not extend to Claims to the extent resulting from the negligent acts or
        omissions or willful misconduct of Tenant, its employees, agents or
        licensees, to consequential or punitive damages or to Claims that are
        covered by property insurance carried by Tenant or required to be
        carried by Tenant hereunder. In case any action or proceeding shall be
        brought against Tenant by reason of any such Claims, Landlord, upon
        notice from Tenant, shall defend the same at Landlord's expense by
        counsel approved by Tenant; it being agreed that Battle Fowler LLP
        and/or counsel designated by Landlord's insurer are acceptable to Tenant
        for such purpose.

19.3    No Release of Insurers. Tenant's and Landlord's indemnification
        obligations under Sections 19.1 and 19.2 hereof are not intended to and
        shall not relieve any insurance carrier of its obligations under
        policies carried by Landlord or Tenant, and such indemnification
        obligations shall survive the expiration or earlier termination of this
        Lease.

20.     Insurance.

20.1    Tenant's Insurance. Tenant shall, during the Term and any other period
        of occupancy of the Premises, at its sole cost and expense, keep in full
        force and effect the following insurance:

                (1) Property. Standard form property insurance insuring against
        the perils of fire, extended coverage, vandalism, malicious mischief,
        special extended coverage ("ALL-RISK") and sprinkler leakage, covering
        all property owned by Tenant, for which Tenant is legally liable or that
        was installed solely at Tenant's expense, and which is located on the
        Premises, including interior improvements, furniture, fittings,
        installations, Trade Fixtures, equipment, facilities and any other
        personal property and any alterations, additions and improvements
        constructed by Tenant pursuant to Section 14.1 hereof (but excluding any
        property required to be insured by Landlord under Section 20.4 hereof),
        in an amount not less than the full replacement cost thereof. All
        proceeds from the insurance required under this Section 20.1(i) shall be
        used for the repair, restoration or replacement of the damaged or
        destroyed property unless this Lease terminates pursuant to Section 21
        hereof, in which event the provisions of Section 20.3 hereof shall
        control.

                (2) Liability. Comprehensive General Liability Insurance
        insuring Tenant against any liability arising out of the lease, use,
        occupancy or maintenance of the Premises and all areas appurtenant
        thereto. Such insurance shall be in the amount of not less than
        $5,000,000.00 Combined Single Limit for injury to, or death of, one or
        more persons in an occurrence, and for damage to tangible property
        (including loss of use) in an occurrence. Any such coverage requirement
        may be satisfied by an umbrella policy. Such policies shall insure the
        hazards of premises and operations, independent

<PAGE>   36

        contractors, contractual liability (covering the indemnity contained in
        Section 19 hereof) and shall (a) name Landlord, the Condominium
        Association (if applicable) and any mortgagee of Landlord as additional
        insureds, (b) contain a cross liability provision, and (c) contain a
        provision that "the insurance provided Tenant hereunder shall be primary
        and noncontributing with any other insurance available to Landlord or
        the Condominium Association," so long as such provision may be
        available. The limit of insurance required pursuant to this Section
        20.1(ii) shall be subject to review by Landlord and, to the extent that
        the amount of such insurance is less than the limits normally and
        customarily maintained with respect to Similar Premises (as hereinafter
        defined), Landlord, from time to time, may require Tenant to increase,
        or cause to be increased, such limit (but Landlord shall not require
        such increases more frequently than once every ten (10) years). Any
        dispute as to the reasonableness of any such increase in the insurance
        limit which Landlord shall purport to require of Tenant under this
        Section, from time to time, shall be submitted to arbitration pursuant
        to Section 7.3 hereof; provided, however, that Tenant shall maintain
        insurance for the disputed policy limit during the pendency of any such
        arbitration proceeding. As used herein, the term "SIMILAR PREMISES"
        shall mean the first-class mixed-use buildings being located in Boston,
        Massachusetts, or other first-class mixed-use buildings or premises
        having business operations of a nature and character substantially
        similar to the nature and character of the business operations being
        conducted at the Premises, and being located in Boston, Massachusetts.

                (3) Workers' Compensation. Workers' Compensation and Employer's
        Liability insurance (as required by state law).

                (4) Rental Interruption. Twelve (12) months rent abatement and
        business interruption insurance which shall cover Tenant's monetary
        obligations under this Lease and any direct or indirect loss of earnings
        attributable to perils insured against under extended coverage all-risk
        property insurance; provided, however, that Tenant shall be entitled to
        self-insure such risk.

                (5) Liquor. Liquor liability insurance coverage with
        commercially reasonable coverage limits, but in no event less than
        $5,000,000.00 per occurrence, naming Landlord, the Condominium
        Association and any mortgagee of Landlord as additional insureds. Any
        such coverage requirement may be satisfied by an umbrella policy.

20.2    Requirements. All policies required of Tenant shall be written by an
        insurer satisfactory to Landlord. Such policies shall name Landlord and
        the Senior Interest Holders (as hereinafter defined) of which Tenant has
        notice as additional insureds. Prior to the date Tenant enters the
        Premises, but in no event later than sixty (60) days after the execution
        of this Lease, Tenant shall deliver to Landlord copies of policies or
        certificates evidencing the existence of the amounts and forms of
        coverage required (or, in the event of self-insuring as permitted in
        Section 20.1(iv) hereof only, evidence of the net worth of Tenant or a
        Person providing a guaranty of this Lease to Landlord of not less than
        $10,000,000). No such policy shall be cancelable or reducible in
        coverage except after thirty (30) days' prior written notice to
        Landlord. Tenant shall, within thirty (30) days

<PAGE>   37

        prior to the expiration of any such policies, furnish Landlord with
        renewals, certificates of insurance, or "binders" thereof, and, if
        Tenant fails to do so within ten (10) days following notice of such
        failure, then, upon an additional notice to Tenant, Landlord may order
        such insurance and charge the cost thereof to Tenant as Additional Rent.
        If Landlord obtains any insurance that is the responsibility of Tenant
        under this Article 20, Landlord shall deliver to Tenant a statement
        setting forth the cost of any such insurance and showing in reasonable
        detail the manner in which it has been computed, and, if obtainable, a
        certificate of insurance naming Tenant as the insured or as an
        additional insured. Tenant's obligation to carry insurance provided for
        in this Article 20 may be satisfied by inclusion within the coverage of
        any blanket policy or policies of insurance carried or maintained by
        Tenant, provided that the coverage required herein will not be reduced
        or diminished by reason of the use of such blanket policies of insurance
        and any such blanket policies of insurance expressly waive any pro rata
        distribution requirement contained in any such policies of insurance
        covering the Premises.

20.3    Proceeds Upon Termination. In the event of damage to or destruction of
        the Improvements resulting in termination of this Lease pursuant to
        Article 21 hereof, (i) Landlord shall be entitled to all proceeds of the
        insurance required to be maintained under Section 20.4 hereof (subject
        to Landlord's obligation to cause such proceeds to be disbursed for the
        purposes of restoration, as herein provided) and (ii) Tenant shall
        immediately pay to Landlord all of its property insurance proceeds, if
        any, plus any deductible amount (subject to the limitation described
        below) relating to the Improvements and all other items of property
        which would have become Landlord's property upon expiration or earlier
        termination of this Lease absent such damage or destruction (but not
        relating to Trade Fixtures or Tenant's other equipment, furniture or
        personal property). Notwithstanding the foregoing, Tenant shall not be
        required to pay any such deductible amounts to Landlord unless Landlord
        can reasonably demonstrate that Landlord has entered into a new lease
        with a non-Affiliate of Landlord for an athletic club in the Premises
        for a lease term of not less than ten (10) years within twelve (12)
        months after the termination of this Lease.

20.4    Landlord's Insurance. Landlord may, but shall not be obligated to, take
        out and carry any form or forms of insurance ("LANDLORD'S INSURANCE") as
        it may reasonably determine advisable, or as may be required by
        Landlord's mortgagee; provided, however, that Landlord shall be required
        to carry (i) Comprehensive General Liability Insurance in amounts not
        less than those required of Tenant pursuant to Section 20.1 hereof and
        (ii) insurance against any peril insurable under an all-risk property
        insurance policy covering the Improvements, exclusive of any item
        insured by Tenant pursuant to Section 20.1(i) hereof, in an amount which
        is one hundred percent (100%) of the full replacement cost of the
        Improvements. Landlord's obligation to carry the all-risk property
        insurance provided for in this Section 20.4 may be satisfied by
        inclusion of the Improvements within the coverage of any blanket policy
        or policies of insurance carried or maintained by Landlord, provided
        that the coverage required herein will not be reduced or diminished by
        reason of the use of such blanket policies of insurance. Tenant shall
        reimburse Landlord, as Additional Rent payable in equal monthly
        installments, the cost of the all-

<PAGE>   38

        risk property insurance for the Improvements required by this Section
        20.4 commencing within thirty (30) days following demand therefor, and
        the premiums for such insurance will not be included in the Insurance
        Escalation (as defined herein). In the event such all-risk property
        insurance covers improvements other than the Improvements, Tenant's pro
        rata share will be that proportion that the Floor Area of the
        Improvements bears to the total Floor Area of all improvements covered
        by such policy.

20.5    Insurance Escalation. Except for Landlord's cost of the all-risk
        property insurance for the Improvements, as addressed in Section 20.4
        hereof, if Landlord's cost of obtaining Landlord's Insurance for the
        Property and/or the Building and the operations thereof exceeds the cost
        of obtaining such insurance for the first twelve (12) months following
        the Commencement Date, Tenant shall pay to Landlord, as Additional Rent,
        within thirty (30) days, after being billed therefore, an amount equal
        to Tenant's Share of such increased cost.

20.6    Compliance. Landlord and Tenant shall promptly comply with all
        reasonable requirements of the insurance authority or of any insurer now
        or hereafter relating to the Premises.

20.7    Waiver of Subrogation. All policies of all-risk, fire, extended coverage
        or similar property insurance which either party obtains or is required
        to maintain in connection with the Development, and the insurance
        required to be obtained by Tenant pursuant to the provisions of Section
        20.1 (iv) hereof, and, if obtainable, all liability policies, shall
        include or shall be deemed to include a clause or endorsement denying
        the insurer any rights of subrogation against the other party. Landlord
        and Tenant waive all rights of recovery against the other for injury or
        loss due to hazards covered by insurance containing or deemed to contain
        such a waiver of subrogation clause or endorsement to the extent of the
        injury or loss covered thereby.

21.     Damage or Destruction.

21.1    (i) Tenant's Reconstruction. In the event the Improvements shall be
        damaged by fire or other perils and this Lease shall not be terminated
        as hereafter provided, Tenant, at its sole cost and expense, shall
        within a period of thirty (30) days thereafter, commence repair,
        reconstruction and restoration of the Improvements to their condition
        existing immediately prior to such damage and prosecute the same
        diligently to completion in compliance with all applicable laws, and
        this Lease shall continue in full force and effect unless this Lease is
        terminated as hereinafter provided. Any such repair, reconstruction and
        restoration shall be performed strictly in accordance with the
        provisions of Article 14 hereof and Tenant shall be entitled to apply
        the insurance proceeds to the repair, reconstruction and restoration in
        the manner provided in Section 21.2 hereof. If at any time Tenant shall
        fail to prosecute such work of repair or rebuilding with diligence, then
        Landlord may give to Tenant notice of such failure and if such failure
        continues for twenty (20) days thereafter, then Landlord, in addition to
        all other rights which it may have, may, at Tenant's sole cost and
        expense, enter upon the Premises, provide labor and/or materials, cause
        the performance of any contract and/or take such other action as it

<PAGE>   39

        may deem advisable to prosecute such work. For this purpose, any
        contracts made by Tenant for purposes of accomplishing repair,
        reconstruction and restoration of the Improvements shall be in a form
        assignable to Landlord and shall be subject to Landlord's approval.
        Landlord shall be entitled to reimbursement for its costs and expenses
        in performing such work from any insurance proceeds and any other moneys
        held by the Depository (as defined herein) for application to the cost
        of such work in accordance with Section 21.2 hereof. All costs and
        expenses incurred by Landlord in carrying out such work for which it is
        not reimbursed by the Depository shall be paid by Tenant upon demand,
        which demand may be made by Landlord periodically as such costs and
        expenses are incurred, in addition to any damages to which Landlord may
        be entitled hereunder.

                (ii) Uninsured Casualty. In the event the Improvements shall be
        damaged by peril which is not covered by insurance required to be
        maintained hereunder (or which is otherwise maintained, if to a greater
        standard), and if a duly qualified contractor certifies, in good faith
        and fair dealing, that the amount required to repair such damage exceeds
        the Uninsured Contribution Amount (as defined herein), Tenant shall have
        the option to terminate this Lease upon giving notice to Landlord of its
        exercise of such termination option within sixty (60) days after such
        damage or destruction. Upon such termination of this Lease, the parties
        shall be released without further obligations to the other coincident
        with the surrender of possession of the Premises to Landlord, except for
        items which theretofore accrued and are then unpaid and any obligations
        specified in this Lease which are to survive the termination of this
        Lease. Notwithstanding the foregoing, in the event that Tenant exercises
        its option to terminate this Lease pursuant to the provisions of this
        Section 21.1 (ii), Landlord shall have the option, exercisable within
        thirty (30) days after Landlord's receipt of Tenant's termination
        notice, to notify Tenant that Landlord elects to fund the amount
        required to repair such damage and destruction in excess of the
        Uninsured Contribution Amount (as defined herein), in which case such
        repair, reconstruction and restoration shall be performed pursuant to
        the procedures set forth in this Section 21.1(ii), except that Tenant
        shall contribute the Uninsured Contribution Amount and Landlord shall
        fund any additional amounts necessary to accomplish such repair,
        reconstruction and restoration. The "UNINSURED CONTRIBUTION AMOUNT"
        shall be Five Hundred Thousand ($500,000.00) Dollars if the casualty
        occurs during the first (180) calendar months of the Initial Term, which
        amount shall be reduced at the beginning of the one hundred ninety third
        (193rd) calendar month of the Initial Term, and every twelve (12) months
        thereafter, by One Hundred Thousand ($100,000.00) Dollars, until (but
        not including) the beginning of the last twelve (12) months of the
        Initial Term. The One Hundred Thousand ($100,000.00) Dollars Uninsured
        Contribution Amount in effect for the last twelve (12) months of the
        Initial Term shall remain throughout any Option Periods.

                (iii) Landlord Termination. In the event that any portion of the
        Development (including the Building) shall be damaged to such an extent
        that Landlord, the Condominium Association or any of Landlord's lenders
        shall elect not to restore same, then Landlord shall have the right to
        terminate this Lease within ninety (90) days

<PAGE>   40
        following the date of the damage or destruction or, if applicable,
        within a reasonable time after Landlord shall have been notified of the
        Condominium Association's or lender's decision not to restore. Upon such
        termination of this Lease, the parties shall be released without further
        obligations to the other coincident with the surrender of possession of
        the Premises to Landlord, except for items which theretofore accrued and
        are then unpaid and any obligations specified in this Lease which are to
        survive the termination of this Lease. Subject to the rights of
        Landlord's lenders and/or the Condominium Association, Landlord shall
        not elect to terminate this Lease unless a material portion of the
        Development (i.e., more than twenty five percent (25%)) shall have been
        damaged. Landlord agrees that if (1) this Lease is terminated by
        Landlord pursuant to this Section 21.1(iii) and Landlord thereafter
        reconstructs, restores or repairs the Building or the Premises, (2) at
        the time of such casualty Tenant is then operating a Club (including
        support facilities) within at least seventy-five percent (75%) of the
        Premises, (3) at the time of such casualty no monetary Default (as
        defined herein) and/or material Default shall have occurred and be
        continuing under this Lease, (4) at the time of such casualty, the
        Unexpired Lease Term (as defined herein) is at least five (5) years or
        Tenant exercises an Option for an Option Period, regardless of whether
        Tenant then would otherwise have the right to exercise same, by
        delivering notice to Landlord simultaneously with the delivery to
        Landlord of the Tenant Acceptance Notice (as defined herein) subject to
        and in accordance with this Section 21.1(iii), (5) within one-hundred
        eighty (180) days following the termination of this Lease pursuant to
        this Section 21.1 (iii), Tenant shall deliver to Landlord a statement
        signed and certified by the chief financial officer of Tenant, if Tenant
        is a corporation, by a managing member, if Tenant is a limited liability
        company, or by the chief financial officer of a corporate general
        partner of Tenant, if Tenant is a partnership (such person, the
        "FINANCIAL OFFICER"), to be true and correct disclosing in reasonable
        detail the aggregate amount of costs and expenses actually incurred by
        Tenant as the result of the cessation of Tenant's business operations in
        the Premises and such termination of this Lease (e.g., including,
        without limitation, the unrecouped costs and expenses actually incurred
        by Tenant in connection with the development of a Club in the Premises
        and reimbursement to Tenant's Club members of membership fees) which are
        not covered by insurance maintained by Tenant or otherwise reimbursed to
        Tenant (collectively, the "TENANT TERMINATION COSTS") and (6) at the
        time of the Landlord Offer (as defined herein), Tenant or an Affiliate
        of Tenant is then operating a first-class coed athletic club, Landlord
        shall not operate a Club in the Premises or offer to lease or accept any
        offer to lease the Premises to any party within a period of five (5)
        years after such termination of this Lease unless Landlord shall have
        first offered in writing (the "LANDLORD OFFER") to lease the Premises to
        Tenant on the terms and conditions of this Lease (including, without
        limitation, any unexercised Option Periods) for a term equal to the
        unexpired portion of the term of this Lease as of such termination date
        (the "UNEXPIRED LEASE TERM") calculated as if this Lease had not been
        terminated and Tenant shall not have accepted such offer by notice to
        Landlord within thirty (30) days after such offer is given to Tenant
        (the "TENANT ACCEPTANCE NOTICE"). Notwithstanding the foregoing, in the
        event that Tenant exercises its option to lease the Premises pursuant to
        this Section 21.1 (iii), Landlord shall have the option, exercisable
        within thirty (30) days after Landlord's receipt
<PAGE>   41

        of the Tenant Acceptance Notice, to nullify the Tenant Acceptance Notice
        by delivering to Tenant notice and paying to Tenant the Tenant
        Termination Costs. Upon Tenant's receipt of such nullification notice
        and the payment of the Tenant Termination Costs, the Tenant Acceptance
        Notice shall be deemed null and void and of no force and effect and
        Tenant shall be deemed to have waived and relinquished its right to
        lease the Premises and Landlord shall at any and all times thereafter be
        entitled to lease all or any portion of the Premises to others at such
        rental and upon such terms and conditions as Landlord in its sole
        discretion may desire.

21.2    Depository. The "DEPOSITORY" shall be a bank or trust company authorized
        to do business in the Boston, Massachusetts, with a net worth of at
        least $10,000,000.00 selected by Tenant and approved by Landlord;
        provided, however, that if (i) Tenant does not make such a selection
        within ten (10) business days after notice and demand by Landlord, then
        Landlord may select the Depository and (ii) if Landlord has a lender
        whose loan is secured by the Property, then anyone, excluding Landlord
        or any Affiliate of Landlord, designated by such lender shall be the
        Depository. Subject to Section 21.5 hereof, all property insurance
        moneys recovered on account of damage or destruction to the Improvements
        shall be applied to the payment of the cost of repairing and replacing
        the Improvements. If net available insurance moneys shall be
        insufficient to pay the entire cost of such work, then Tenant shall bear
        the cost thereof in excess of the net available insurance moneys. Except
        for work which is reasonably expected to cost less than $100,000.00
        (with respect to which Landlord shall hold the proceeds), the Depository
        shall hold insurance proceeds with respect to the Improvements and shall
        disburse said proceeds during the course of the work of repair,
        reconstruction and restoration in accordance with the provisions set
        forth below unless the Depository is Landlord's lender or a designee of
        such lender, in which event the provisions of the loan documentation
        shall control. The Depository shall not be required to make
        disbursements more often than at thirty (30) day intervals. Landlord,
        Tenant and the Depository shall reasonably, promptly and in good faith
        prepare and execute reasonable and appropriate instructions for
        disbursement of the proceeds which shall include a procedure for receipt
        of certificates, plans, notices, lien releases and applications for
        payment. Notwithstanding anything to the contrary contained herein,
        disbursement of such insurance proceeds shall in all events (i) be
        subject to such requirements as may be imposed by the Condominium
        Association and/or any mortgagee of Landlord and (ii) include a
        procedure for a retainage of ten percent (10%) of the cost of the work
        from each draw disbursed in connection with such restoration until at
        least thirty (30) days after the completion of all work. If, after all
        of said work shall be completed in accordance with the terms of this
        Lease and all governmental approvals and permits required have been
        obtained, there are funds held by the Depository for application to the
        cost of such work in excess of the amounts withdrawn, then such funds
        (after first applying such funds to the costs and expenses of the
        Depository) shall be delivered to Tenant; provided, however, that if the
        funds held by the Depository are a result of any insurance carried by
        Landlord or Section 21.5 hereof, such funds shall be delivered to
        Landlord. The Depository may retain free of trust its reasonable fees
        and expenses for acting as such. In the event there are not sufficient
        funds held by the Depository to pay its fees and

<PAGE>   42

        expenses, Landlord and Tenant shall share equally the fees and expenses
        of the Depository.

21.3    No Termination or Rental Abatement. No destruction of or damage to the
        Property or any part thereof, whether such destruction or damage be
        partial or total or whether such destruction or damage shall have been
        covered by insurance or not, shall entitle or permit Tenant to surrender
        or terminate this Lease (except as provided in Section 21.1(ii) hereof)
        or relieve Tenant from liability to pay in full the rents and other sums
        and charges payable by Tenant hereunder (except as provided in Section
        21.4 hereof), or from any of its obligations under this Lease. Tenant
        hereby waives any rights now or hereafter conferred upon it by statute
        or other law to surrender this Lease or to quit or surrender the
        Property or any part thereof, or to receive any suspension, diminution,
        abatement or reduction of the rent or other sums and charges payable by
        Tenant hereunder on account of any such destruction or damage, except as
        otherwise expressly provided in this Lease.

21.4    Limited Rental Abatement. Notwithstanding anything to the contrary
        contained herein, in the event that the Improvements shall be damaged by
        peril which is not covered by insurance required to be maintained
        hereunder (or which is otherwise maintained), then, to the extent not
        covered by the rent abatement insurance or business interruption
        insurance required to be carried by Tenant pursuant to Section 20.1 (iv)
        hereof (whether by self insuring or otherwise), Tenant shall be entitled
        to abate its obligations to pay Monthly Base Rent and, as applicable,
        Common Area Expenses or Operating Expenses, for the period from the date
        of such peril until the earlier of (i) the date upon which Tenant opens
        for operation of its business, or (ii) the date which is twelve (12)
        months after the date of such peril, provided that such twelve (12)
        month period shall be reduced to the extent that Tenant does not
        diligently seek to repair the damage caused as a result of such peril
        and/or re-open the Premises for the operation of its business. From and
        after the expiration of such rental abatement, Tenant's obligation to
        pay Monthly Base Rent and, as applicable, Common Area Expenses or
        Operating Expenses shall once again commence.

21.5    Lender's Prior Rights to Insurance Proceeds. Notwithstanding anything to
        the contrary herein, Tenant acknowledges that the rights of any lender
        holding a mortgage or deed of trust against the Premises ("SECURED
        LENDER") to any insurance proceeds applicable to the Improvements,
        except for Tenant's Insurance Share (as defined herein), shall be
        superior to the rights of Landlord and Tenant to such proceeds.
        "TENANT'S INSURANCE SHARE" is equal to Tenant's "pro rata share" (as
        determined in accordance with Section 22.1 hereof) of the insurance
        proceeds payable for the damaged Improvements. Landlord agrees to use
        commercially reasonable efforts to cause the Secured Lender to make the
        insurance proceeds in which the Secured Lender has a prior interest
        available to Tenant for reconstruction as contemplated in this Lease.
        If, within two hundred seventy (270) days following a casualty, a
        Secured Lender has not made such proceeds available for reconstruction,
        then at Tenant's election this Lease shall terminate as of said 270th
        day, unless Landlord gives notice to Tenant on or before said 270th day
        that Landlord is

<PAGE>   43

        willing to provide the sums necessary for reconstruction in excess of
        any deductibles and Tenant's Insurance Share, in which case this Lease
        shall not terminate and Landlord shall deposit such sums with the
        Depository and Tenant shall reconstruct the Premises in accordance with
        the provisions of this Article 21 hereof. The disbursement of any
        insurance proceeds applicable to the Improvements shall be subject to
        the control of the Secured Lender notwithstanding anything to the
        contrary in Section 21.2 hereof.

22.     Eminent Domain.

22.1    Permanent Taking. In case all of the Property (a "TOTAL TAKING"), or
        such part thereof as shall substantially interfere with Tenant's use and
        occupancy thereof to the extent Tenant cannot operate the Club (a
        "SUBSTANTIAL TAKING"), shall be taken for any public or quasi-public
        purpose by any lawful power or authority by exercise of the right of
        appropriation, condemnation or eminent domain, or sold to prevent, or in
        lieu of, such taking, this Lease shall automatically terminate effective
        as of the date possession is required to be surrendered to said
        authority. In the event the amount of property or the type of estate
        taken shall not substantially interfere with the conduct of Tenant's
        business (a "PARTIAL TAKING"), Tenant shall restore the Property to
        substantially its same condition prior to such Partial Taking and a fair
        and equitable allowance shall be made to Tenant for the rent
        corresponding to the time during which, and to the part of the Property
        of which, Tenant shall be so deprived on account of such taking. Tenant
        shall not assert any claim against Landlord for any compensation because
        of such taking. In the event of a Total Taking, Substantial Taking or
        Partial Taking, any award shall belong to and be paid to Landlord
        subject to the rights of any mortgagee of Landlord's interest in the
        Premises or the beneficiary of any deed of trust which constitutes an
        encumbrance thereon, except that Tenant shall be entitled to any portion
        of such award related to (i) Trade Fixtures or Tenant's other equipment
        and/or personal property which is taken, (ii) Tenant's moving expenses
        and loss of goodwill, (iii) Tenant's "pro-rata share" of the
        straight-line (on a 20-year basis) unamortized costs of the Improvements
        taken, and (iv) in the case of a Partial Taking only, the amount
        required to restore the Property to substantially its same condition
        prior to such Partial Taking which shall be held by the Depository for
        Landlord and shall be disbursed to Tenant for the purposes of such
        restoration upon the same terms and conditions as if they were insurance
        proceeds under Article 21 hereof. For the purposes of this Section 22.1,
        "pro-rata share" shall be determined by the proportion that the cost
        paid by Tenant for the taken Improvements bears to the total of those
        costs paid therefor by Landlord and Tenant. Nothing contained in this
        Section 22.1 shall be deemed to give Landlord any interest in any award
        made to Tenant for the taking of Trade Fixtures or Tenant's other
        personal property, fixtures and goodwill and for relocation expenses.
        Landlord agrees not to interfere with Tenant's right to participate in
        any condemnation proceedings. The provisions of this Section 22.1 shall
        survive the termination of this Lease.

22.2    Temporary Taking. In the event of taking of the Property or any part
        thereof for temporary use, (i) this Lease shall be and remain unaffected
        thereby and rent shall not abate, and (ii) Tenant shall be entitled to
        receive for itself such portion or portions of any

<PAGE>   44

        award made for such use with respect to the period of the taking which
        is within the Term provided that if such taking shall remain in force at
        the expiration or earlier termination of this Lease, Tenant shall then
        pay to Landlord a sum equal to the reasonable cost of performing
        Tenant's obligations under Article 15 hereof with respect to the
        surrender of the Property and upon such payment shall be excused from
        such obligations. For purpose of this Section 22.2, a temporary taking
        shall be defined as a taking for a period of ninety (90) days or less.

22.3    Waiver. Landlord and Tenant each hereby waive any statutory rights of
        termination which may arise by reason of a taking.

23.     Defaults and Remedies.

23.1    Defaults. The occurrence of any one or more of the following events
        shall constitute a default hereunder by Tenant ("DEFAULT"):

                (1) The vacation or abandonment of the Premises by Tenant or
        failure to continuously operate the Club in accordance with Article 8
        hereof where Tenant has failed to cure such vacation, abandonment or
        failure to operate within thirty (30) days following notice from
        Landlord to Tenant of the need for such cure (the parties agree,
        however, that cessation of operations of business from the Premises from
        time to time for the purpose of remodeling the Premises or making
        alterations, additions or improvements to the Property (collectively
        "TEMPORARY CLOSURES") shall not be considered vacation or abandonment of
        the Premises provided and on condition that Tenant shall use
        commercially reasonable efforts to complete any and all such work, from
        time to time, in an expeditious and non-disruptive manner).

                (2) The failure by Tenant to make any payment of Rent or any
        other payment required to be made by Tenant hereunder (including the
        Work Letter), where such failure shall continue for a period of ten (10)
        business days following notice from Landlord to Tenant that such payment
        is due; provided, however, Tenant shall be entitled to such notice and
        opportunity to cure on only two (2) occasions during any Lease Year;

                (3) The failure by Tenant to observe or perform any of the
        covenants or provisions of this Lease (including the Work Letter) to be
        observed or performed by Tenant, other than as specified in Sections
        23.1(i) or (ii) hereof, where such failure shall continue for a period
        of thirty (30) days after notice thereof from Landlord to Tenant. If the
        nature of the Default is such that more than thirty (30) days are
        reasonably required for its cure, then Tenant shall not be deemed to be
        in Default if Tenant shall commence such cure within said thirty-day
        period and thereafter diligently prosecutes such cure to completion,
        which completion shall occur not later than one hundred twenty (120)
        days from the date of such notice from Landlord;

                (4) (a) The making by Tenant of any general assignment for the
        benefit of creditors; (b) the filing by or against Tenant of a petition
        to have Tenant adjudged a bankrupt or a petition for reorganization or
        arrangement under any law

<PAGE>   45

        relating to bankruptcy unless, in the case of a petition filed against
        Tenant, the same is dismissed within one hundred twenty (120) days; (c)
        the appointment of a trustee or receiver to take possession of
        substantially all of Tenant's assets located at the Premises or of
        Tenant's interest in this Lease, where possession is not restored to
        Tenant within one hundred twenty (120) days; or (d) the attachment,
        execution or other judicial seizure of substantially all of Tenant's
        assets located at the Premises or of Tenant's interest in this Lease,
        where such seizure is not discharged within 120 days; or

                (5) The failure by Tenant to open for business to the general
        public within twelve (12) months following Substantial Completion of the
        Premises, subject to Force Majeure, within thirty (30) days following
        notice from Landlord to Tenant of the need for such cure.

                Any notice provided for in this Section 23.1 shall be in
addition to, and not in lieu of, any statutorily required notice regarding
unlawful detainer actions.

                In the event that this Lease is terminated by notice as provided
for in Section 23.1(iv) hereof and Tenant shall thereafter seek protection under
the Federal Bankruptcy Laws or any state equivalent, then Tenant if a
debtor-in-possession agrees to consent to any application by Landlord to
terminate the automatic stay provisions of the Federal Bankruptcy Code on the
grounds that there is no equity in this Lease as a result of the pre-petition
termination notice.

23.2    Remedies. In the event of any Default, in addition to any other remedies
        available to Landlord at law or in equity, Landlord shall have the
        immediate option to terminate this Lease and all rights of Tenant
        hereunder. In the event that Landlord shall elect to so terminate this
        Lease then Landlord may recover from Tenant:

                (1) the worth at the time of award of any unpaid Rent which had
        been earned at the time of such termination; plus

                (2) the worth at the time of award of the amount by which the
        unpaid Rent which would have been earned after termination until the
        time of award exceeds the amount of such rental loss that Tenant proves
        could have been reasonably avoided; plus

                (3) the worth at the time of award of the amount by which the
        unpaid Monthly Base Rent for the balance of the Term after the time of
        award exceeds the amount of such rental loss that Tenant proves could be
        reasonably avoided.

        As used in Section 23.2(i) and (ii) hereof, the "worth at the time of
award" is computed by allowing interest at the prime, base or reference rate of
The Chase Manhattan Bank of New York, or its successors, from time to time,
charged to its most favored customers on commercial loans having a 90-day
duration (the "PRIME RATE") plus two percent (2%). As used in Section 23.2(iii)
hereof, the "worth at the time of award" is computed by discounting such amount
by the Prime Rate at the time of award. Notwithstanding anything to the contrary
contained in this Lease, neither Landlord nor Tenant shall be liable for
consequential or punitive

<PAGE>   46

        damages which may be suffered by the other as a result of a default by
        Landlord or default by Tenant under this Lease.

23.3    Re-entry. In the event of any Default, Landlord shall also have the
        right, without demand or notice, without terminating this Lease, to
        re-enter the Premises and remove all persons and property from the
        Premises, either by summary proceedings or by action at law, without
        being deemed guilty of trespass and without prejudice to any remedies
        for nonpayment or late payment of any Rent or breach of any covenant.
        Such property may be removed and stored in a public warehouse or
        elsewhere at the cost of and for the account of Tenant. If Landlord
        elects to re-enter the Premises, Landlord may terminate this Lease, or
        from time to time, without terminating this Lease, may relet all or any
        part of the Premises as agent for Tenant for such term or terms and at
        such rental and upon such other terms and conditions as Landlord may
        deem advisable, with the right to make alterations and repairs to the
        Premises as Landlord, in Landlord's reasonable judgment, considers
        advisable and necessary for the purpose of reletting the Premises. No
        re-entry or taking possession of the Premises by Landlord pursuant to
        this Section 23.3 shall be construed as an election to terminate this
        Lease unless notice of such intention is given to Tenant or unless the
        termination thereof is decreed by a court of competent jurisdiction.

                If Landlord terminates this Lease or re-enters the Premises
pursuant to this Article 23, Tenant shall remain liable (in addition to accrued
liabilities) for: (i) any unpaid Rent due at the time of termination, plus
interest thereon from the due date at the Prime Rate; provided, however, that if
such interest is limited by law to a lesser amount, Landlord shall be entitled
to the maximum amount of interest permitted by law, (ii) subject to clause (v)
of this paragraph, Rent until the date this Lease would have expired had such
termination not occurred; (iii) any and all reasonable expenses (including all
reasonable attorneys' fees, costs and brokerage fees) incurred by Landlord in
re-entering and repossessing the Premises, in making good any Default by Tenant,
in protecting and preserving the Premises by use of watchmen and caretakers and
in reletting the Premises (subject to the provisions of the immediately
preceding paragraph and provided that Tenant shall not be liable for any
expenses incurred by Landlord with respect to alterations which are not
consistent with the use of the Premises as an athletic club and/or a use(s)
complementary to an athletic club); and (iv) any other amount reasonably
necessary to compensate Landlord for any other detriment actually caused
Landlord by Tenant's failure to perform its obligations under this Lease, less
(v) the net proceeds received by Landlord from any reletting prior to the date
this Lease would have expired if it had not been terminated. Tenant agrees to
pay to Landlord the amount so owned above for each month during the Term, at the
beginning of each such month. Any suit brought by Landlord to enforce collection
of such amount for any one month shall not prejudice Landlord's right to enforce
the collection of any such amount for any subsequent month. In addition to the
foregoing, and without regard to whether this Lease has been terminated, Tenant
shall pay to Landlord all costs incurred by Landlord, including reasonable legal
fees and costs, with respect to any lawsuit or action instituted or taken by
Landlord to enforce the provisions of this Lease. Tenant's liability shall
survive the institution of summary proceedings and the issuance of a warrant or
writ thereunder.

<PAGE>   47

                If Landlord terminates this Lease, Landlord shall have the right
at any time, at its sole option, to require Tenant to pay to Landlord on demand,
as liquidated and agreed final damages in lieu of Tenant's liability hereunder:
(i) the then present cash value of the Rent, and all other sums which would have
been payable under this Lease from the date of such demand to the date when this
Lease would have expired if it had not been terminated, minus (ii) the fair
market value of the Premises for the same period; provided, however, that if
such damages are limited by law to a lesser amount, Landlord shall be entitled
to prove as liquidated damages the maximum amount permitted by law.

                Landlord shall use commercially reasonable efforts to relet the
Premises in the event this Lease is terminated pursuant to the provisions of
this Article 23.

                Tenant, on its own behalf and on behalf of all persons claiming
through Tenant, including, but not limited to, all creditors, does hereby waive
any and all rights and privileges, so far as is permitted by law, which Tenant
and all such persons might otherwise have under any present or future law: (i)
to redeem the Premises; (ii) to reenter or repossess the Premises; (iii) to
restore the operation of this Lease, with respect to any dispossession of Tenant
by judgment, warrant or writ of any court or judge, or any re-entry by Landlord,
any expiration or termination of this Lease, whether such dispossession,
re-entry, expiration or termination of this Lease shall be by operation of law
or pursuant to the provisions of this Lease; or (iv) to the service of any
notice of intention to re-enter or notice to quit which may otherwise be
required to be given. The words "disposition," "re-enter", and "re-elected" as
used in this Lease shall not be deemed to be restricted to their technical
meanings.

                In the event of any breach or threatened breach by Tenant or any
persons claiming through Tenant of any of the provisions contained in this
Lease, Landlord shall be entitled to enjoin such breach or threatened breach and
shall have the right to invoke any right or remedy allowed at law, in equity, or
otherwise.

23.4    Cumulative Rights. Except as otherwise expressly provided in this Lease,
        all rights, options and remedies of Landlord contained in this Lease
        shall be construed and held to be cumulative, and no one of them shall
        be exclusive of the others, and Landlord shall have the right to pursue
        any one or all of such remedies or any other remedy or relief which may
        be provided by law, whether or not stated in this Lease. No waiver of
        any Default shall be implied from any acceptance by Landlord of any rent
        or other payments due hereunder or any omission by Landlord to take any
        action on account of such Default if such Default persists or is
        repeated, and no express waiver shall affect Defaults other than as
        specified in said waiver.

23.5    Waiver of Trial by Jury. Tenant hereby waives all right to trial by jury
        in any claim, action, proceeding or counterclaim by Landlord against
        Tenant on any matters arising out of or in any way connected with this
        Lease, the relationship of Landlord and Tenant, and/or Tenant's use or
        occupancy of the Premises.

24.     Assignment and Subletting.

<PAGE>   48

24.1    Landlord's Consent. Except as otherwise expressly provided in the last
        sentence of Section 8.1 hereof and in Sections 24.3, 46 and 56 hereof,
        Tenant shall not, either voluntarily or by operation of law, assign,
        sublet, pledge, encumber, hypothecate or otherwise transfer this Lease,
        without the prior consent of Landlord, which consent may be granted or
        withheld in Landlord's sole and absolute discretion. Without limiting
        the foregoing, it shall be a condition to Landlord's consent hereunder
        that the assignee execute, acknowledge and deliver to Landlord an
        agreement whereby such assignee agrees to be bound by all of the
        covenants and agreements in this Lease which Tenant has agreed to keep,
        observe or perform.

24.2    Notice. Subject to the provisions of Articles 46 and 56 hereof, in the
        event Tenant desires to assign, sublet, pledge, encumber, hypothecate or
        otherwise transfer this Lease, then at least thirty (30) days prior to
        the date when Tenant desires the transaction to be effective (the
        "ASSIGNMENT DATE"), Tenant shall give Landlord a notice (the "ASSIGNMENT
        NOTICE"), which shall set forth the name, address and business of the
        proposed assignee or sublessee, information (including references)
        concerning the character, ownership, and financial condition of the
        proposed assignee or sublessee, the Assignment Date, and any ownership
        or commercial relationship between Tenant and the proposed assignee or
        sublessee. If Landlord requests additional detail within ten (10) days
        after Tenant's initial submission, the Assignment Notice shall not be
        deemed to have been received until Landlord receives such additional
        detail, and without otherwise limiting the provisions of Section 24.1
        hereof, Landlord may withhold consent to any assignment or sublease
        until such information is provided to it.

24.3    Ownership Transfers. Except as otherwise expressly provided in this
        Section 24.3, any dissolution, merger, consolidation, or other
        reorganization of the corporation which constitutes Tenant, or the sale
        or other transfer of fifty percent (50%) or more of the corporate stock
        of the corporation, or the sale of fifty percent (50%) or more of the
        value of the assets of the corporation, shall be deemed an assignment
        prohibited by this Article 24 unless Landlord's prior consent is
        obtained, which consent shall not be unreasonably withheld or delayed
        provided and on condition that: (i) the principal purpose for such
        assignment is not the circumventing of the restrictions and limitations
        contained in this Article 24; (ii) Tenant shall notify Landlord, in
        writing, of any such proposed assignment not less than twenty (20) days
        prior to the date on which Tenant proposes to assign its interest in
        this Lease; (iii) the assignee shall be reputable and shall have in the
        reasonable judgment of Landlord, sufficient financial worth to perform
        the obligations of Tenant under this Lease (after consideration of the
        then net worth of each Person providing a guaranty or surety of this
        Lease to Landlord) as evidenced by the submission to Landlord of
        financial and other information regarding the proposed assignee,
        including, without limitation, its business experience, a current
        financial statement and such other information as Landlord may
        reasonably request; (iv) Tenant shall within ten (10) days after an
        assignment is executed deliver to Landlord a copy of such assignment;
        (v) such assignee shall execute, acknowledge and deliver to Landlord an
        agreement, in form and substance reasonably satisfactory to Landlord,
        whereby such assignee shall assume the obligations and performance of
        this Lease and agree to be

<PAGE>   49

        personally bound by and upon all of the terms and conditions of this
        Lease on the part of Tenant to be performed or observed; (vi) each
        Person providing a guaranty or surety of this Lease to Landlord shall
        deliver an agreement in form and substance reasonably satisfactory to
        Landlord reaffirming such Person's obligations and liabilities under its
        respective agreement, guaranty or surety to Landlord and that such
        agreement, guaranty or surety remains binding and enforceable against
        such Person in accordance with its terms; (vii) the assignee shall use
        and occupy the Premises only for the purposes set forth in this Lease,
        and for no other purposes, in compliance with the terms and conditions
        of this Lease; (viii) neither such assignment nor the acceptance of rent
        by Landlord from such assignee shall, in any way, release, relieve or in
        any manner affect the liability of Tenant under this Lease, it being the
        agreement and understanding of the parties that assignor shall be and
        remain liable under all of the terms and conditions of this Lease; and
        (ix) neither such assignment nor the acceptance of rent by Landlord from
        such assignee shall, in any way, release, relieve or in any manner
        affect the liability of any Person providing a guaranty or surety of
        this Lease to Landlord.

        Notwithstanding anything to the contrary contained herein, the transfer
of shares of Tenant (if Tenant is a corporation) for purposes of this Section 24
shall not include the sale of shares by persons other than those deemed
"insiders" within the meaning of the Securities Exchange Act of 1934, as
amended, which sale is effected through the "over-the-counter market" or through
any recognized stock exchange.

        The term "PERSON" as used in this Lease shall mean any individual,
corporation, partnership, joint venture, limited liability company, limited
liability partnership, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof or any
other form of business or legal association or entity, and the term "CONTROL" as
used in this Section 24.3 shall mean the direction of the management and
policies of a person or entity, whether through the ownership of voting
securities, by contract or by law.

24.4    No Release. Any sale, assignment, subletting, hypothecation or transfer
        of this Lease that is not in compliance with the provisions of this
        Article 24 shall, at Landlord's option, be void. The consent by Landlord
        to any assignment or sublease shall not be construed as relieving Tenant
        or any assignee of this Lease from any liability or obligation hereunder
        whether or not then accrued. This Article 24 shall be fully applicable
        to all further sales, hypothecations, transfers, assignments and
        sublettings of any portion of the Premises by any successor or assignee
        of Tenant.

25.     Subordination.

        Without the necessity of any additional document being executed by
Tenant for the purpose of effecting a subordination, and at the election of
Landlord or any mortgagee with a lien on the Premises or the Development, or any
portion thereof or any ground lessor with respect to the Premises, this Lease
shall be subject and subordinate at all times to: (i) all ground leases or
underlying leases which may now exist or hereafter be executed affecting the
Premises, (ii) the lien of any mortgage or deed of trust which may now exist or
hereafter be executed in any amount for which the Premises is specified as
security, and (iii) the Condominium Documents

<PAGE>   50

(as same may now or hereafter exist) and (iv) any CC&R (as may now or hereafter
exist) that do not materially increase Tenant's obligations hereunder nor
materially decrease Tenant's rights hereunder nor materially interfere with the
conduct of Tenant's normal business operations (all of the foregoing,
collectively the "SENIOR INTERESTS" and the holders of the Senior Interests
shall be referred to as "SENIOR INTEREST HOLDERS"). Notwithstanding the
foregoing, Landlord shall have the right to subordinate or cause to be
subordinated any such ground leases or underlying leases or any such liens to
this Lease. In the event that any ground lease or underlying lease terminates
for any reason or any mortgage or deed of trust is foreclosed or a conveyance in
lieu of foreclosure is made for any reason, Tenant shall, notwithstanding any
subordination, attorn to and become the tenant of the successor in interest to
Landlord. Tenant covenants and agrees to execute and deliver within fifteen (15)
business days after demand by Landlord and in the form requested by Landlord,
any additional documents evidencing the subordination of this Lease with respect
to any such ground leases or underlying leases, the lien of any such mortgage or
deed of trust, the Condominium Documents or the CC&R, and, effective upon a
failure to do so, Tenant hereby irrevocably appoints Landlord as
attorney-in-fact of Tenant to execute, deliver and record any such document in
the name and on behalf of Tenant. In consideration of, and as a condition
precedent to, Tenant's agreement to be bound by the subordination provisions of
this Article 25, Landlord shall provide to Tenant for Tenant's execution, a
commercially reasonable subordination, attornment and nondisturbance agreement
("NON-DISTURBANCE AGREEMENT"), in recordable form, that in any event shall not
provide for any material increase in Tenant's obligations nor any material
decrease in Tenant's rights under this Lease and shall be executed by all future
ground lessors, mortgage holders and deed of trust beneficiaries of any of
Landlord's interest in the Premises desiring to subordinate this Lease to the
ground lease, mortgage or deed of trust, as applicable. In the event Landlord
fails to obtain any Non-Disturbance Agreement, then, as to the mortgage, deed of
trust or ground lease which would have been the subject thereof, this Article 25
shall be void and of no force or effect.

        As a condition to the effectiveness of this Lease, for the benefit of
Tenant Landlord shall deliver to Tenant a non-disturbance agreement in form and
substance identical to the specimen annexed hereto as Exhibit D from Fleet Bank,
National Association (the "INITIAL MORTGAGEE NON-DISTURBANCE AGREEMENT") and
such Initial Mortgagee Non-Disturbance Agreement shall be deemed to satisfy the
requirements described in this Article 25. Tenant agrees to execute the Initial
Mortgagee Non-Disturbance Agreement, provided the agreement conforms to the
agreement attached hereto as Exhibit D.

26.     Estoppel Certificate.

26.1    Delivery. Within fifteen (15) business days following any request which
        Landlord or Tenant may make from time to time, the other party shall
        execute and deliver to the requesting party a statement certifying: (i)
        the Commencement Date; (ii) the fact that this Lease is unmodified and
        in full force and effect (or, if there has been modification hereto,
        that this Lease is in full force and effect, and stating the date and
        nature of such modification); (iii) the date to which the rental and
        other sums payable under this Lease have been paid; (iv) that to the
        best of the certifying party's knowledge, there is no current default
        under this Lease by either Landlord or Tenant except as

<PAGE>   51

        specified in the statement; and (v) such other matters reasonably
        requested by the requesting party. Landlord and Tenant intend that any
        statement delivered pursuant to this Section 26.1 may be relied upon by
        any mortgagee, beneficiary, purchaser or prospective purchaser of the
        Premises, the Club or any interest in either, and said statement shall
        so state.

26.2    Failure to Deliver. Landlord's or Tenant's failure to deliver any
        statement required pursuant to Section 26.1 hereof within such time
        shall be conclusive upon such failing party (i) that this Lease is in
        full force and effect, without modification except as may be reasonably
        represented in good faith by Landlord or Tenant, (ii) that there is no
        uncured default in Landlord's or Tenant's performance, and (iii) that
        not more than one month's rental has been paid in advance.

26.3    Financial Statements. Within thirty (30) days after Landlord's request,
        Tenant shall furnish to Landlord (i) no more often than once per
        calendar-quarter, the most current existing audited financial statements
        of Tenant (which shall, at a minimum, include a balance sheet and income
        statement), and (ii) if at any time Tenant is not a publicly-traded
        entity or an Affiliate thereof which files consolidated financial
        statements, such other information relating to Tenant's financial
        condition as may be reasonably required by Landlord. Landlord shall at
        all times maintain the confidentiality of the aforementioned financial
        statements which are not available to the general public, except to the
        extent reasonably necessary to (a) comply with applicable laws,
        regulations, court or administrative orders, or to prosecute or defend
        any claim or suit by litigation or otherwise under this Lease and (b)
        provided that the recipients of such information agree in writing to
        hold the same in confidence, (1) carry out the obligations set forth in
        this Lease or documents evidencing and/or securing any Senior Interest,
        (2) obtain legal, financial and/or tax advice from Landlord's attorneys,
        accountants and financial advisors, (3) negotiate or complete a
        transaction with a lender to Landlord secured by Landlord's interest in
        the Development, the Building or this Lease (including, without
        limitation, a pledge of rents payable hereunder) or purchaser of the
        Building or the Development or (4) negotiate or complete a public or
        private syndication or similar offering with respect to this Lease,
        Landlord, the interests of any of the members of Landlord, the
        Development and/or the Building.

27.     Construction.

        This Lease is to be governed by and construed in accordance with the
laws of the Commonwealth of Massachusetts (excluding choice of law provisions).
Whenever the context so requires herein, the neuter gender shall include the
masculine and feminine, and the singular number shall include the plural, and
vice versa. This Lease shall be construed as having been drafted by both
parties, jointly, and not in favor of or against one party or the other. When
used herein, the terms "including," "include," "including, without limitation,"
and similar terms shall be construed as prefacing examples, components or
illustrations rather than exhaustive definitions, unless a contrary intent is
specifically stated, such as "including and expressly limited to," or in
similarly unambiguous terms.

<PAGE>   52

28.     Successors and Assigns.

        Except as otherwise provided in this Lease, all of the covenants,
conditions and provisions of this Lease shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and assigns.

29.     Surrender of Premises.

        The voluntary or other surrender of this Lease by Tenant, or a mutual
cancellation hereof, shall not work a merger, and shall, at the option of
Landlord, operate as an assignment to it of any or all subleases or
subtenancies. Upon the expiration or earlier termination of this Lease, Tenant
shall surrender the Premises and, subject to the provisions of Article 14
hereof, all alterations and additions thereto, in good order, repair and
condition, reasonable wear and tear excepted.

30.     Attorneys' Fees and Costs.

        If Landlord should bring suit for possession of the Premises, or if
Landlord or Tenant should bring suit for the recovery of any sum due under this
Lease or because of the breach of any provisions of this Lease, or for any other
relief against the other hereunder, or in the event of any other litigation
between the parties with respect to this Lease, including any action for
declaratory relief filed by Landlord or Tenant, then the prevailing party shall
be entitled to an award of all costs and expenses, including reasonable
attorneys' fees and costs, in addition to all other relief awarded.

31.     Performance by Landlord.

        If Tenant shall fail to pay any sum of money owed hereunder, or if
Tenant shall fail to perform any other act on its part to be performed
hereunder, and (except in the event of an emergency) such failure shall continue
beyond the cure periods set forth in Section 23.1 hereof, Landlord may, without
waiving or releasing Tenant from the obligations of Tenant, but shall not be
obligated to, make any such payment or perform any such other act to be made or
performed by Tenant. All sums so paid by Landlord and all necessary incidental
costs together with interest thereon at the rate of twelve percent (12%) per
annum, from the date of such payment by Landlord, shall be payable to Landlord
upon demand as Additional Rent.

32.     Late Charge and Interest.

        Tenant acknowledges that the late payment by Tenant to Landlord of any
sums due under this Lease will cause Landlord to incur costs not contemplated by
this Lease, the exact amount of such costs being extremely difficult and
impractical to fix. Such costs include processing and accounting charges, and
late charges that may be imposed on Landlord by the terms of any encumbrance or
note secured by any encumbrance covering the Premises. Therefore, if any
installment of Monthly Base Rent or any other sum of money due hereunder is not
timely paid by Tenant and such failure continues for ten (10) days after notice
thereof from Landlord, Tenant shall pay to Landlord, as Additional Rent, the sum
of four percent (4%) of the overdue amount as

<PAGE>   53

a late charge; provided, however, Tenant shall be entitled to such ten (10) day
notice and opportunity to cure on only two (2) occasions during any twelve (12)
month period. To the extent permitted by applicable law, such overdue amount
shall also bear interest commencing upon the due date, as Additional Rent, at
the lesser of the maximum rate than permitted by law and twelve percent (12%)
per annum. Landlord's acceptance of any late charge or interest shall not
constitute a waiver of Tenant's default with respect to the overdue amount or
prevent Landlord from exercising any of the other rights and remedies available
to Landlord under this Lease or any law now or hereafter in effect.
Notwithstanding anything to the contrary contained herein, in no event shall
Tenant be required to pay any amounts that would be characterized as interest
under applicable law in excess of the amounts that could be lawfully charged,
collected and received by Landlord under applicable law. Landlord and Tenant
intend to comply with all usury laws with respect to this Lease.

33.     Mortgagee Protection.

        In the event of any default on the part of Landlord, Tenant will give
notice by registered or certified mail to any beneficiary of a deed of trust or
mortgage given by Landlord covering the Premises whose address shall have been
furnished to Tenant, and shall offer such beneficiary or mortgagee the same
opportunity to cure Landlord's default as provided to Landlord under Article 49
hereof plus an additional period of sixty (60) days. In addition, in those
instances which reasonably require such beneficiary or mortgagee to be in
possession of, or have title to, the Development (or any portion thereof) to
cure any such default, the time herein allowed to such beneficiary or mortgagee
to cure such default shall be deemed extended to include the period of time
reasonably necessary to obtain such possession or title with due diligence, and
in those instances in which such beneficiary or mortgagee is prohibited by any
process or injunction issued by any court or by reason of any action by any
court having jurisdiction of any bankruptcy or insolvency proceeding involving
Landlord from commencing or prosecuting foreclosure or other appropriate
proceedings in the nature thereof, the time herein allowed such beneficiary or
mortgagee to prosecute such foreclosure or other proceeding shall be extended
for the period of such prohibition.

34.     Definition of Landlord.

        The term "LANDLORD," as used in this Lease, so far as covenants or
obligations on the part of Landlord are concerned, shall be limited to mean and
include only the owner or owners, at the time in question, of Landlord's
interest under this Lease. In the event of any transfer, assignment or other
conveyance or transfer of such title, Landlord herein named (and in case of any
subsequent transfer or conveyance, the then grantor) shall (in absence of a
writing hereafter described) be automatically freed and relieved from and after
the date of such transfer, assignment or conveyance of all liability with
respect to the performance of any covenants or obligations on the part of
Landlord contained in this Lease thereafter to be performed, and in absence of
any writing to the contrary, the transferee shall be deemed to have assumed
same. Landlord may transfer its interest in the Premises or this Lease without
the consent of Tenant and such transfer or subsequent transfer shall not be
deemed a violation on Landlord's part of any of the terms or conditions of this
Lease.

<PAGE>   54

35.     Waiver.

        A waiver of any breach of any term, covenant or condition herein
contained shall not be deemed to be a waiver of any subsequent breach of the
same or any other term, covenant or condition herein contained, nor shall any
custom or practice which may grow up between the parties in the administration
of the terms hereof be deemed a waiver of or in any way affect the right of
Landlord or Tenant to insist upon the performance by Tenant or Landlord,
respectively, in strict accordance with said terms. The subsequent acceptance of
rent hereunder by Landlord shall not be deemed to be a waiver of any preceding
breach by Tenant of any term, covenant or condition of this Lease, other than
the failure of Tenant to pay the particular rent so accepted, regardless of
Landlord's knowledge of such preceding breach at the time of acceptance of such
rent. No acceptance by Landlord of a lesser sum than the Monthly Base Rent and
Additional Rent then due shall be deemed to be other than on account of the
earliest installment of such rent, and Landlord may accept such check or payment
without prejudice to Landlord's right to recover the balance of such installment
or other amount or pursue any other remedy provided in this Lease.

36.     Parking.

        So long as this Lease remains in full force and effect and Tenant is
operating a Club and facilities related to the operation of such Club in at
least seventy-five percent (75%) of the Premises, Landlord shall make up to 150
parking spaces (individually, a "PARKING SPACE" and collectively, the "PARKING
SPACES") available on a non-exclusive basis, with such Parking Spaces to be
located at the Development, in Landlord's discretion, for daily use during such
times as the Club is open for business, by Tenant and Tenant's members subject
to the terms and provisions of this Article 36. Tenant shall pay to Landlord, as
Additional Rent, within fifteen (15) days after Tenant's receipt of any bill or
statement therefor, an amount equal to $150 per calendar month per Parking
Space, such $150 being subject to increase every five (5) Lease Years during the
Term by the CPI Increase (as defined herein); provided, however, that
notwithstanding the foregoing, each such CPI Increase shall not exceed twelve
percent (12%) (the "PARKING CHARGE").

        Provided Tenant is not in default beyond the expiration of applicable
notice or cure periods under any of the terms, provisions and conditions of this
Lease, Tenant shall have the option to use up to an additional 200 parking
spaces subject to and in accordance with the terms and provisions of this
paragraph, with such parking spaces to be located at the Development, in
Landlord's discretion, by giving irrevocable written notice (the "ADDITIONAL
PARKING SPACE NOTICE") to Landlord not later than six (6) months after the date
upon which Tenant commences normal business operations from the Premises with
the general public. If Tenant gives the Additional Parking Space Notice to
Landlord pursuant to the immediately preceding sentence, then, subject to the
terms and provisions of this Article 36, (i) so long as this Lease remains in
full force and effect and Tenant is operating a Club and facilities related to
the operation of such Club in at least seventy-five percent (75%) of the
Premises, Landlord shall make the number of parking spaces indicated in the
Additional Parking Space Notice (not to exceed 200 parking

<PAGE>   55

spaces in the aggregate) available on a non-exclusive basis for daily use during
such times as the Club is open for business, by Tenant and Tenant's members and
(ii) Tenant shall pay to Landlord, as Additional Rent in accordance with the
immediately preceding paragraph, the Parking Charge with respect to each such
additional parking space.

        In addition to the foregoing, Tenant and Tenant's members may use in
connection with the Club the parking spaces located at the Development which are
designated as general public parking spaces if and to the extent available on a
"first come, first serve" basis. The foregoing shall not be deemed to be a
representation that the aforementioned general public parking spaces shall be
available for use by Tenant and Tenant's members. Landlord shall charge Tenant
an amount equal to the then market rate for such spaces, with the market rate
for such spaces to be based on the market rate for similarly located parking
spaces in the vicinity of the Building (as reasonably determined by Landlord).

        If and to the extent any of the aforementioned parking spaces are valet
or attendant parking for the general public, Landlord shall provide any such
valet or attendant parking to Tenant's members at the rate of $1.75 per vehicle
(such $1.75 being in addition to the Parking Charge with respect to any such
parking spaces and being subject to increase each Lease Year by the CPI
Increase). Notwithstanding anything to the contrary contained herein, if the
delivery times in any calendar month of the vehicles of Tenant's members parked
in any such valet or attendant parking spaces exceed four (4) minutes more than
80% of the time during any such calendar month, then, Tenant, without
limitation, shall have the right, but not the obligation, to cease the use of,
and Landlord shall cease to have the obligation to furnish, any or all of such
valet or attendant parking spaces by giving prior written notice, together with
documentation reasonably evidencing such delivery times, to Landlord within
fifteen (15) days after the end of such calendar month. If Tenant shall deliver
such notice and documentation, then the right of Tenant to use, and the
obligation of Landlord to furnish, the number of valet or attendant parking
spaces set forth in such notice to Landlord shall end as of the last day of the
calendar month in which Landlord shall receive such notice and documentation, it
being understood and agreed that notwithstanding the foregoing the terms and
provisions of this Lease shall continue in full force and effect in accordance
with their terms.

        The term "CPI" shall mean the Consumer Price Index for all Urban
Consumers published by the Bureau of Labor Statistics of the United States
Department of Labor for the Boston Metropolitan Area, All Items (1982-84=100),
or a successor or substitute index reasonably selected by Landlord appropriately
adjusted to reflect a constant base year. In the event that the CPI ceases to
use 1982-84=100 as the basis of calculation, or if a substantial change is made
in the terms or number of items contained in the CPI, then the CPI shall be
adjusted to the figure that would have been arrived at had the manner of
computing the CPI not been altered. In the event such CPI (or a successor or
substitute index) is no longer published, a reliable governmental or other
non-partisan publication evaluating the information theretofore used in
determining the CPI shall be used. No adjustments or recomputations, retroactive
or otherwise, shall be made due to a revision which may later be made in the
first published figure of the CPI for any month. Whenever any provision hereof
provides that an amount shall be adjusted by the CPI Increase, then such amount
shall be multiplied by a fraction, the numerator of which shall be

<PAGE>   56
the CPI for the calendar month immediately preceding the Lease Year for which
the amount is to be determined and the denominator of which shall be the CPI for
the calendar month during which the Commencement Date has occurred.

37.     CC&R.

        Tenant shall faithfully observe and comply with the Condominium
Documents, and all reasonable and nondiscriminatory rules and regulations
Landlord shall adopt for the Development (as the same may be changed from time
to time) and the CC&R. Landlord shall not be responsible to Tenant for the
violation or nonperformance by any other tenant or occupant of the Development
of the Condominium Documents (if applicable), any of said rules and regulations
or the CC&R. Landlord agrees that future amendments to the CC&R and any such
rules and regulations shall not materially interfere with or interrupt Tenant's
ability to operate a first-class Club in accordance with the terms and
provisions of this Lease and shall not materially increase Tenant's obligations
hereunder nor materially decrease Tenant's rights hereunder, nor be enforced as
to Tenant discriminatorily.

38.     Headings.

        The Article and Section headings of this Lease are not a part of this
Lease and shall have no effect upon the construction or interpretation of any
part hereof.

39.     Examination of Lease.

        Submission of this instrument for examination or signature by Landlord
or Tenant does not constitute a reservation of or option for lease, and it is
not effective as a lease or otherwise until execution by and delivery to both
Landlord and Tenant.

40.     Intentionally Omitted.

41.     Prior Agreement; Amendments.

        This Lease, together with the addenda and exhibits attached hereto,
contains all of the agreements of the parties hereto with respect to any matter
covered or mentioned in this Lease, and no prior agreement or understanding
pertaining to any such matter shall be effective for any purpose. No provision
of this Lease may be amended or added to except by an agreement in writing
signed by the parties hereto or their respective successors in interest (subject
to the consent requirement in Article 24 hereof). The parties acknowledge that
all prior agreements, representations and negotiations are deemed superseded by
this Lease to the extent they are not incorporated herein.

42.     Severability.

        Any provision of this Lease which shall prove to be invalid, void or
illegal in no way affects, impairs or invalidates any other provision hereof,
and such other provisions shall remain in full force and effect.

<PAGE>   57

43.     Limitation on Liability.

        It is expressly understood and agreed that any money judgment against
Landlord resulting from any default or other claim arising under this Lease
shall be satisfied only out of Landlord's interest in (i) the Premises, if the
Premises shall then be subject to a condominium form of ownership or (ii) the
Development, if the Premises shall not then be subject to a condominium form of
ownership. No other real, personal or mixed property of Landlord, wherever
situated, shall be subject to levy on any such judgment obtained against
Landlord. If Landlord's interest in the Premises or Development, as applicable,
is insufficient for the payment of such judgment, Tenant shall not institute any
further action, suit, claim or demand, in law or in equity, against Landlord for
or on the account of such deficiency. Tenant hereby waives, to the fullest
extent waivable under law, any right to satisfy said money judgment against
Landlord except from Landlord's interest in the Development or Premises, as
applicable, and except as otherwise provided above.

44.     Riders.

        Clauses, plats, exhibits, addenda and riders, if any, affixed to this
Lease are a part hereof.

45.     Modification for Lender.

        If, in connection with obtaining construction, interim or permanent
financing for the Premises or the Development, or any part thereof, or consent
of Landlord's existing or potential lenders to the terms of the transactions
contemplated pursuant to this Lease, a lender shall request reasonable
modifications in this Lease as a condition to such financing or the granting of
its consent, Tenant will not unreasonably withhold, delay or defer its consent
thereto, provided that such modifications do not materially increase the
obligations of Tenant hereunder, materially decrease Tenant's rights hereunder
or materially adversely affect the leasehold interest hereby created. If, in
connection with obtaining financing for Tenant's Trade Fixtures subject to and
in accordance with Section 1.2 hereof, tenant's lender shall request reasonable
modifications to this Lease, Landlord agrees to make reasonable nonmaterial
modifications to this Lease and further agrees not to unreasonably withhold,
delay or defer its consent with respect to such modifications provided such
modifications do not decrease the monetary obligations of Tenant hereunder or
materially affect Landlord's rights hereunder; provided, however, that Landlord
shall have no obligation to agree to any such modifications unless such
modifications are approved by the Senior Interest Holders.

46.     Security Agreements/Leasehold Mortgages.

46.1    Tenant covenants and agrees that Tenant shall not, except as set forth
        in Sections 56.1 and 56.2 hereof, encumber or place or permit to be
        placed any mortgages or other encumbrances on the leasehold interest
        granted hereunder and that no security agreement, whether by way of
        conditional bill of sale, chattel mortgage or instrument of similar
        import, shall be placed upon any improvement made by Tenant which is
        affixed to the realty.

<PAGE>   58

46.2    In the event that any of the machinery, fixtures, furniture and
        equipment installed by Tenant in the Premises are purchased or acquired
        by Tenant subject to a chattel mortgage, conditional sale agreement or
        other title retention or security agreement, Tenant undertakes and
        agrees that no such chattel mortgage, conditional sale agreement or
        other title retention or security agreement or Uniform Commercial Code
        ("UCC") filing statement shall be permitted to be filed as a lien
        against the Building and real property of which the Premises form a part
        and to cause to be inserted in any of the above described title
        retention, chattel mortgage, security agreements, conditional sale
        agreement or UCC filing statement the following provision:

                "NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, THIS CHATTEL
                MORTGAGE, CONDITIONAL SALE AGREEMENT, TITLE RETENTION AGREEMENT,
                SECURITY AGREEMENT OR UCC FILING STATEMENT SHALL NOT CREATE OR
                BE FILED AS A LIEN AGAINST THE LAND, BUILDING AND IMPROVEMENTS
                COMPRISING THE REAL PROPERTY IN WHICH THE GOODS, MACHINERY,
                EQUIPMENT, APPLIANCES OR OTHER PERSONAL PROPERTY COVERED HEREBY
                ARE TO BE LOCATED OR INSTALLED."

46.3    In addition to any other rights that Landlord may have by reason of
        Tenant's failure to comply herewith, if any such leasehold mortgage or
        other encumbrance, lien or UCC filing statement, based on an agreement
        as above described, is filed as an encumbrance, as applicable, against
        the Building or improvements of which the Premises form a part, the
        Premises and/or any interest thereon, Tenant shall, within thirty (30)
        days following notice thereof from Landlord, cause such leasehold
        mortgage or other encumbrance, lien or filing statement to be removed or
        discharged at Tenant's own cost and expense, and Tenant's failure to do
        so shall constitute a breach of a material provision of this Lease.

47.     Authorizations.

        Each individual executing this Lease on behalf of Landlord or Tenant
represents and warrants that he or she is duly authorized to execute and deliver
this Lease on behalf of Landlord or Tenant, respectively, in accordance with the
provisions of duly adopted corporate resolutions, and that this Lease has been
duly and properly executed and delivered by Landlord or Tenant, respectively.

48.     Signage.

        Tenant agrees that any and all exterior building signs on the Premises
shall be subject to the approval of Landlord (and if applicable the Condominium
Association) with respect to the graphics, materials, color, design, lettering,
language, lighting, specifications and exact location ("SIGNAGE APPROVAL
FACTORS") and shall be subject to the approval of the applicable governmental
authorities having jurisdiction, including, without limitation, the BRA and the
City of Boston Public Improvement Commission. Tenant shall obtain, and shall
furnish Landlord with copies of, any and all necessary approvals and/or permits
of governmental authorities having jurisdiction, including, without limitation,
BRA and the City of Boston Public Improvement Commission with respect to such
signs and Tenant shall maintain all such

<PAGE>   59

approvals and/or permits in good standing throughout the Term. All signage shall
be of a size not in excess of that permitted by applicable law and shall
otherwise comply with applicable laws, regulations, permits, approvals,
ordinances, the Condominium Documents and CC&R; provided, however, that no
change in the CC&R shall require Tenant to modify its original (or, if
theretofore modified, its then-existing,) exterior signs. At the expiration or
earlier termination of this Lease, Tenant shall, at Tenant's sole cost and
expense, cause all such signage to be removed from the exterior of the
Improvements and shall cause the exterior of the Improvements to be restored to
the condition existing prior to the placement of such signage. If Tenant fails
to remove such signs and restore the exterior of the Improvements by the
expiration or earlier termination of this Lease, then Landlord may perform such
work, and all costs and expenses incurred by Landlord in so performing shall be
reimbursed by Tenant to Landlord within ten (10) days after Tenant's receipt of
an invoice therefor. In addition to the foregoing, at all times Tenant shall be
entitled to erect and maintain, as needed in Tenant's judgment but subject to
Landlord's approval, throughout the Development, appropriate directional signage
with respect to Tenant's parking. Notwithstanding anything to the contrary
contained in this Lease, in connection with Tenant seeking to obtain any
approvals and/or permits from the BRA for such signs, Tenant shall furnish
Landlord with copies of all notices and documents submitted to the BRA so that
Landlord may be kept fully informed in respect thereof, Landlord may, at its
election, reasonably participate in the same and at the election of Landlord,
Tenant shall retain, at Tenant's sole cost and expense, a Person designated by
Landlord and approved by Tenant to obtain any such approvals and/or permits from
the BRA, provided that any such designation shall not cause a delay (in more
than a de minimis manner) in the obtaining of any such approvals and/or permits
by Tenant, it being understood and agreed that Landlord shall not be liable to
Tenant in connection with such participation of Landlord and the retaining of
such Person by Tenant in connection with the obtaining of any such approvals
and/or permits.

49.     Default by Landlord.

        Landlord shall not be in default hereunder unless Landlord fails to
perform the obligations required of Landlord within a reasonable time, but in no
event later than thirty (30) days after notice by Tenant to Landlord and to the
holder of any first mortgage or deed of trust covering the Premises whose name
and address have been furnished in writing to Tenant ("NOTICED LENDER"),
specifying wherein Landlord has failed to perform such obligation; provided,
however, that if the nature of Landlord's obligation is such that more than
thirty (30) days are required for performance, then Landlord shall not be in
default if Landlord commences performance within such thirty (30) day period and
thereafter diligently prosecutes the same to completion (the "CURE PERIOD"). In
addition, the Noticed Lender shall be entitled to such additional period of time
to cure any such default as is set forth in Section 33 hereof. Notwithstanding
anything in this Lease to the contrary, if access to the Premises is unavailable
as a result of any blockage occurring in the Common Areas that is caused by
Landlord or its agents, Tenant shall have the right to give Landlord and any
Noticed Lender notice of such events (an "ABATEMENT NOTICE"). If the blockage in
the Common Areas which denies access to the Premises has not been repaired
within the Cure Period or such additional period of time for the Noticed Lender
to cure any such default as is set forth in Section 33 hereof (not to exceed
thirty (30) days after the Cure Period), Tenant's obligations to pay Monthly
Base Rent and Common

<PAGE>   60

Area Expenses (or if applicable, Operating Expenses) shall be abated for the
period after the Abatement Notice until the cure of the condition giving rise to
such notice for the entire amount of Monthly Base Rent and Common Area Expenses
(or if applicable, Operating Expenses), provided (i) the condition giving rise
to such abatement right is a denial of access to the Premises due to a blockage
of the Common Areas that is caused by Landlord or its agents and (ii) Tenant is
actually unable to and actually does not use any of the Premises for the conduct
of its business. In the event that for a period of ninety (90) consecutive days
following the Abatement Notice, the condition giving rise to such notice has not
been cured and Tenant has not conducted its business from the Premises during
such ninety (90) day period, Tenant shall have the right to deliver an
additional notice (a "TERMINATION NOTICE") to Landlord and the Noticed Lender
specifying that such item has not been cured within such period and if such
condition is not then cured within thirty (30) business days after the
Termination Notice, Tenant may terminate this Lease by giving notice thereof to
Landlord and the Noticed Lender prior to the date upon which such condition is
cured. The foregoing rights and remedies are in addition to all other rights and
remedies available to Tenant at law or in equity. Except as provided in this
Article 49, Tenant shall not have the right to terminate this Lease as a result
of Landlord's default hereunder. Landlord's liability hereunder in the event of
a default shall be limited as set forth in Article 43 hereof. Notwithstanding
anything to the contrary contained herein, if the blockage occurring in the
Common Areas is the result of a fire or other casualty or a taking in eminent
domain, then this Article 49 shall be inapplicable and Articles 21 and 22 hereof
shall govern the rights of the parties.

50.     Reasonable Consents.

        Except for any matter which has a material impact on the exterior
appearance of the Improvements or except as otherwise provided herein, any time
the consent, approval, determination, designation, or other discretionary
judgment is required of Landlord or Tenant under this Lease, such consent,
approval, determination, designation, or other discretionary judgment shall not
be unreasonably delayed, withheld, conditioned, exercised or decided,
notwithstanding the presence in some instances of words to that effect and their
absence in other instances.

51.     No Recording.

        It is expressly agreed that Tenant may not and shall not record this
Lease or any memorandum hereof, except as otherwise expressly provided in this
Lease. Tenant and Landlord shall execute and deliver a statutory form of
memorandum of this Lease for the purpose of recording, but said memorandum of
this Lease shall not in any circumstances be deemed to modify or to change any
of the provisions of this Lease. Upon the expiration or sooner termination of
this Lease, Tenant covenants that it will, at the request of Landlord, execute,
acknowledge and deliver an instrument canceling any memorandum of lease which is
recorded and all other documentation to record same.

52.     Force Majeure.

<PAGE>   61

        The occurrence of any of the following events shall be referred to
herein as "FORCE MAJEURE" and shall excuse such obligations of Landlord or
Tenant as are thereby rendered impossible or reasonably impracticable for so
long as such event continues: strikes; lockouts; labor disputes; acts of God;
inability to obtain labor, materials or reasonable substitutes therefor;
governmental restrictions, regulations or controls; judicial orders; enemy or
hostile governmental action; civil commotion; fire or other casualty; and other
causes beyond the reasonable control of the party obligated to perform
(excluding financial inability). Notwithstanding the foregoing, the occurrence
of such events shall not excuse Tenant's obligations to pay Monthly Base Rent,
Common Area Expenses or any other sums hereunder (but may delay the commencement
of such obligations to the limited extent expressly provided for in Section 2.1
hereof) or excuse such obligations as this Lease may otherwise impose on the
party to obey, remedy or avoid such event.

53.     Guaranty.

        Currently with the execution hereof by Tenant and as a condition to the
effectiveness of this Lease, Tenant shall cause The Sports Club Company to
execute and deliver to Landlord a guaranty of this Lease in the form and
substance set forth in Exhibit E attached hereto which is acceptable to
Landlord.

54.     Condition Precedent.

        Landlord and Tenant shall each have the right to terminate this Lease on
thirty (30) days notice to the other party (without penalty) if Landlord shall
not have closed upon financing for the construction of the portions of the
Development to be performed by Landlord (all such approvals and terms with
respect thereto to be acceptable to Landlord in its sole and absolute
discretion) not later than December 31, 1999 ("DEADLINE DATE"). In the event
that Tenant shall serve a termination notice pursuant to this Article 54 and
Landlord shall secure the necessary financing within the aforesaid thirty (30)
day period or Landlord shall fund such construction without the required
financing (it being expressly agreed that Landlord shall have no obligation
whatsoever to do so), then Tenant's termination notice shall be of no force and
effect. In the event Landlord or Tenant shall terminate this Lease, as
aforesaid, neither party shall have any further rights or obligations hereunder.

55.     Communication Equipment and Antenna.

55.1    In the event Landlord shall make a communications antenna or satellite
        dish located on the roof of the Building (generically, the "ANTENNA")
        available for the non-exclusive and general use of the tenants and
        occupants of the Building, then, in such event, Tenant may use the
        antenna in connection with the conduct of Tenant's normal business
        operations in the Premises provided and on condition that: (a) Tenant's
        use of the antenna shall be subject to Landlord's reasonable approval,
        (b) Tenant shall pay to Landlord the monthly Building charge for the use
        of the antenna as established by Landlord from time to time within
        thirty (30) days after receipt of an invoice with respect thereto, (c)
        Tenant shall, at its sole cost and expense, install all necessary lines,

<PAGE>   62

        risers, conduits and cables from the antenna to the Premises required
        for Tenant's use thereof (collectively, the "TENANT INSTALLATION"), (d)
        the Tenant Installation is performed in accordance with all legal
        requirements and in compliance with the terms and conditions of this
        Lease; (e) Tenant shall indemnify and hold Landlord harmless from any
        liability, cost or expense (including reasonable attorneys' fees and
        costs and disbursements) connected with or arising from the Tenant
        Installation of any nature whatsoever, unless such liability, cost or
        expense results solely from the acts or omissions of Landlord, or its
        agents, servants or employees; (f) Tenant shall promptly repair any
        damage caused to the roof of the Building or any other portion of the
        Building by reason of the Tenant Installation including, without
        limitation, any repairs, restorations, maintenance, renewals or
        replacement of the roof of the Building necessitated by or in any way
        caused by or relating to the Tenant Installation; and (g) Tenant shall
        remove the Tenant Installation and repair any resulting damage to the
        Building and restore the portion of the roof of the Building and the
        Building affected by the Tenant Installation to the condition which
        existed prior to the Tenant Installation, reasonable wear and tear and
        damage by casualty excepted, all at or prior to the expiration of the
        term of this Lease, at Tenant's sole cost and expense.

55.2    The antenna is for the sole use of Tenant in the conduct of Tenant's
        business and for no other purpose or by any other parties. Tenant shall
        not resell in any form the use, or rights to the use, of the antenna
        including the granting of any license or other rights. The rights
        granted in this Article 55 are given in connection with, and as part of
        the rights created under, this Lease and are not separately transferable
        or assignable other than in connection with an assignment or subletting
        permitted by this Lease.

56.     Mortgages of Tenant's Interest.

56.1    (a) Subject to the limitations of this Article 56, Tenant shall have the
        right to mortgage and pledge its interest in and to this Lease after the
        Commencement Date, provided and on condition that any such mortgage,
        pledge or other similar lien instrument (a "LEASEHOLD MORTGAGE") shall
        be given to an Authorized Institution (as herein defined and an
        Authorized Institution holding a Leasehold Mortgage shall hereunder be
        referred to as an "AUTHORIZED HOLDER"). Any such Leasehold Mortgage
        shall be subject and subordinate to the rights of Landlord hereunder and
        the Senior Interest Holders. Landlord shall not be obligated to
        recognize a holder of any Leasehold Mortgage, nor shall any such holder
        be entitled to any of the rights granted to an Authorized Holder in this
        Article, unless such holder shall be an Authorized Institution.

                (b) No Authorized Holder of a Leasehold Mortgage on this Lease
        shall have the rights or benefits mentioned in this Article 56, nor
        shall the provisions of this Article be binding upon Landlord, unless
        and until an executed counterpart of such Leasehold Mortgage or a copy
        certified by the Authorized Holder or by the recording officer to be
        true, shall have been delivered to Landlord, together with a certified
        copy of all other ancillary or security documents (collectively,
        "LEASEHOLD FINANCING DOCUMENTS"). Within fifteen (15) business days
        after request by Tenant, Landlord shall provide to any

<PAGE>   63

        proposed holder of a Leasehold Mortgage a statement as to whether such
        proposed holder is an Authorized Holder and whether or not any notice of
        default under this Lease has been delivered to Tenant. Except as
        otherwise set forth in such statement, such statement shall stop
        Landlord from asserting that such holder is not an Authorized Holder,
        but shall create no liability on Landlord, and, if the same states that
        such proposed holder is not an Authorized Holder, shall set forth the
        reasons therefor in reasonable detail. In no event, however, shall any
        failure by Tenant or other party to comply with the terms of any such
        Leasehold Mortgage, including, without limitation, the use of any
        proceeds of any debt, the repayment of which is secured by such
        Leasehold Mortgage, be deemed to invalidate the lien of such Leasehold
        Mortgage.

                (c) Tenant and/or the Authorized Holder of such Leasehold
        Mortgage shall send to Landlord an executed counterpart of any
        amendment, modification or extension of such Leasehold Mortgage or any
        other Leasehold Financing Documents promptly after the same are
        executed.

56.2    If Tenant shall mortgage this Lease in compliance with the provisions of
        this Article 56, then so long as any such Leasehold Mortgage shall
        remain unsatisfied of record, the following provisions shall apply:

                        (1) Landlord, upon serving Tenant with any notice of
                default pursuant to the provisions of Article 23 hereof, shall
                also serve a copy of such notice upon the Authorized Holder at
                the address provided for in Section 56.2(e) hereof, and as to
                such Authorized Holder only, no notice by Landlord to Tenant
                hereunder shall be deemed to have been duly given unless and
                until a copy thereof has been so served.

                        (2) Any Authorized Holder, in case Tenant shall be in
                default hereunder, shall, within the period set forth herein to
                cure such default and otherwise as herein provided, have the
                right to remedy such default, or cause the same to be remedied,
                and Landlord shall accept such performance by or at the instance
                of such Authorized Holder as if the same had been made by
                Tenant.

                        (3) Anything herein contained to the contrary
                notwithstanding, upon the occurrence of a Default, Landlord
                shall take no action to effect a termination of this Lease
                without first giving to the Authorized Holder at the address
                provided for in Section 56.2(e) hereof written notice thereof
                and, as to such Authorized Holder only, (x) with respect to any
                Default which can be cured by payment of money, five (5)
                business days thereafter within which to cure any such monetary
                Default; provided, however, that such Authorized Holder shall,
                within such five (5) business day period, deliver to Landlord a
                valid, legal and binding written understanding by such
                Authorized Holder to indemnify, defend and hold harmless
                Landlord and the Condominium Association (if applicable) from
                and against all Claims actually or allegedly arising from or in
                connection with such Default and Landlord's forbearing from
                terminating this Lease; and (y) with respect to such other
                Defaults (individually and collectively, "NON-

<PAGE>   64

                MONETARY DEFAULTS"), a reasonable time thereafter within which
                either to obtain possession of the Leasehold Mortgaged property
                (including possession by a receiver) or to institute, prosecute
                and complete foreclosure proceedings or otherwise acquire
                Tenant's interest under this Lease with diligence; provided,
                however, that such Authorized Holder shall, within thirty (30)
                days following any such Non-Monetary Default, deliver to
                Landlord a valid, legal and binding written undertaking by such
                Authorized Holder to cure such default subject to and in
                accordance with the applicable provisions of the balance of this
                Article 56, to pay to Landlord all Rent then due and owing to
                Landlord from Tenant and to indemnify, defend and hold harmless
                Landlord and the Condominium Association (if applicable) from
                and against all Claims actually or allegedly arising from or in
                connection with such Default and Landlord's forbearing from
                terminating this Lease; provided, further, however, that:

                (2) such forbearance shall not subject Landlord to criminal
        prosecution or subject all or any portion of the Development to lien or
        sale (without limiting the application of the above Landlord shall be
        deemed subject to prosecution for a crime if Landlord, or its managing
        agent, if any, or any officer, director, partner, shareholder or
        employee of Landlord or its managing agent as an individual, is charged
        with a crime of any kind or degree whatsoever, whether by summons or
        otherwise);

                (3) such forbearance shall not be in breach of any covenant,
        representation or warranty of any Senior Interest;

                (4) such Authorized Holder shall promptly, diligently and
        continuously prosecute the cure of such event of default; and

                (5) such Authorized Holder upon obtaining possession or
        acquiring Tenant's interest under this Lease, shall be required promptly
        to cure all defaults then susceptible of being cured prior to the
        expiration of the applicable notice and grace periods expressly provided
        for in this Lease which periods shall not commence to elapse until the
        date on which such Authorized Holder shall obtain possession or acquire
        Tenant's interest under this Lease; provided, however, that: (1) such
        Authorized Holder shall not be obligated to continue such possession or
        to continue such foreclosure proceedings after any such default shall
        have been cured; (2) nothing herein contained shall preclude Landlord,
        subject to the provisions of this Article 56, from exercising any rights
        or remedies under this Lease with respect to the occurrence of any other
        event of default during the pendency of any foreclosure proceedings; (3)
        such Authorized Holder shall agree with Landlord in writing made within
        twenty (20) days after request therefor by Landlord (given after the
        occurrence of a Default), to comply during the period of such
        forbearance with such of the agreements, terms, conditions and covenants
        of this Lease as are susceptible of being complied with by such
        Authorized Holder (it being agreed that any agreement, term, condition
        or covenant that can be performed or cured solely by payment of money
        shall be susceptible of being complied with by such Authorized Holder);
        and (4) any default by Tenant not susceptible of being cured by such
        Authorized Holder shall be deemed to have been waived by Landlord upon
        such

<PAGE>   65

        possession or acquisition of Tenant's interest in this Lease by such
        Authorized Holder. It is understood and agreed that such Authorized
        Holder, or its designee, or any purchaser in foreclosure proceedings
        (including, without limitation, a corporation formed by such Authorized
        Holder) may become the legal owner of this Lease through any foreclosure
        proceedings or by assignment of this Lease in lieu of foreclosure;
        provided, however, that such legal owner shall (A) comply with the
        applicable provisions of this Article 56 and (B) within thirty (30) days
        after obtaining possession of or acquiring Tenant's interest under this
        Lease or acquiring control of Tenant's interest under this Lease
        (provided that the mere appointment of a receiver shall not be deemed to
        place such Authorized Holder in control unless such Authorized Holder
        has the ability to direct the appointment of a Qualified Manager) (aa)
        at all times retain a manager or operator ("QUALIFIED MANAGER") for the
        Premises which has demonstrated experience and expertise in the
        operation of sports fitness clubs consistent with the operations
        required of Tenant under this Lease (which obligation to retain a
        Qualified Manager shall be a continuous and ongoing obligation of any
        such entity holding Tenant's interest hereunder) and shall have notified
        Landlord of such Qualified Manager and delivered reasonable
        documentation as to the experience and expertise of such Qualified
        Manager to Landlord, or (bb) assign Tenant's interests in this Lease in
        accordance with the terms and conditions of Article 24 hereof. If a
        dispute arises with respect to the experience and/or expertise of a
        Qualified Manager which dispute is not resolved within ten (10) days
        after notice thereof to the other party, either party may by notice to
        the other submit the dispute to arbitration in accordance with Section
        7.3 hereof.

                        (d) In the event of the termination of this Lease prior
                to the expiration of the term of this Lease, whether by summary
                proceedings to dispossess, service of notice to terminate, or
                otherwise, due to an event of default, Landlord shall serve upon
                the Authorized Holder at the address provided for in Section
                56(e) hereof written notice that this Lease has been terminated
                together with a statement of any and all sums which would at
                that time be due under this Lease but for such termination, and
                of all other events of default, if any, under this Lease then
                known to Landlord. Such Authorized Holder shall thereupon have
                the option to obtain a new lease in accordance with and upon the
                following terms and conditions:

                Upon the written request of such Authorized Holder given within
                thirty (30) days after service of such notice from Landlord that
                this Lease has been terminated, Landlord shall enter into a new
                lease of the Premises with such Authorized Holder, or its
                designee, as follows:

                        Such new lease shall be entered into at the cost
                        (including, without limitation, reasonable attorneys'
                        fees, disbursements and expenses and any real estate
                        transfer or transfer gains taxes imposed, primarily or
                        secondarily, on Landlord by reason of such termination
                        and/or the granting of such new

<PAGE>   66

                        lease) of the tenant thereunder, shall be effective as
                        of the date of the termination of this Lease, and shall
                        be for the remainder of the term of this Lease and at
                        the rent and upon all the agreements, terms, covenants
                        and conditions contained in this Lease, including any
                        applicable rights of the lease extension. Such new lease
                        shall require the tenant to perform any unfulfilled
                        obligation of Tenant under this Lease which is
                        susceptible of being performed by such tenant,
                        including, without limitation, curing any default which
                        can be cured by the payment of a sum of money. To the
                        extent that Landlord's Work shall have theretofore been
                        completed, Landlord shall have no further liability with
                        respect to the initial construction of Landlord Work's.
                        Such new lease shall provide that there shall be no
                        liability on the part of Landlord for any holdover by
                        Tenant. Upon the execution of such new lease, the tenant
                        named therein shall pay any and all sums which would at
                        the time of the execution thereof be due under this
                        Lease but for such termination and shall pay all
                        expenses, including (i) reasonable attorneys' fees,
                        court costs and disbursements and expenses and any real
                        estate transfer or transfer gains taxes imposed,
                        primarily or secondarily, on Landlord by reason of such
                        termination and/or the granting of such new lease and
                        (ii) any costs and expenses incurred by Landlord in
                        connection with such default and termination, the
                        recovery of possession of the Premises, and the
                        preparation, execution and delivery of such new lease.

                        (e) Any notice or other communication which Landlord
                shall desire or is required to give to or serve upon any
                Authorized Holder shall be in writing and shall be served by
                certified mail, addressed to such Authorized Holder at its
                address as set forth in such Leasehold Mortgage, or in the last
                assignment thereof delivered to Landlord pursuant to Article 9
                hereof or at such other address as shall be designated by such
                Authorized Holder by notice in writing given to Landlord by
                certified mail.

                        (f) Any notice or other communication which any
                Authorized Holder shall desire or is required to give to or
                serve upon Landlord shall be deemed to have been duly given or
                served if sent by certified mail addressed to Landlord at
                Landlord's addresses as set forth in Article 9 hereof or at such
                other addresses

<PAGE>   67

                (including without limitation to Senior Interest Holders
                designated by Landlord) as shall be designated by Landlord by
                notice in writing given to such Authorized Holder by certified
                mail.

                        (g) Each such notice and communication provided for
                under this Section 56.2 shall be governed by the provisions of
                Article 9 hereof.

56.3    If any Authorized Holder or its designee shall obtain possession of or
        acquire title to Tenant's interest in this Lease, by foreclosure of the
        Leasehold Mortgage or by assignment in lieu of foreclosure or by an
        assignment to a nominee or wholly-owned subsidiary corporation of such
        Authorized Holder or its designee, or under a new lease subject to and
        in accordance with this Article 56, such Authorized Holder or such
        designee may assign this Lease or such new lease, as the case may be,
        and notwithstanding anything contained in Section 24.4 hereof shall
        thereupon be released from all liability for the performance or
        observance of the agreements, terms, covenants and conditions in such
        lease contained on Tenant's part to be performed and observed from and
        after the date of such assignment, provided and on condition that (i)
        such Authorized Holder or such designee shall have complied with (a) the
        second sentence of Section 24.1 hereof and (b) the terms and conditions
        of Section 24.2 hereof, (ii) such assignee shall have in the reasonable
        judgement of Landlord, sufficient financial worth to perform the
        obligations of Tenant under this Lease as evidenced by the submission to
        Landlord of evidence reasonably satisfactory to Landlord of the
        financial worth of any such assignee and (iii) such assignee shall at
        all times retain a Qualified Manager for the Premises and shall have
        notified Landlord of such Qualified Manager and delivered reasonable
        documentation as to the experience and expertise of such Qualified
        Manager to Landlord.

56.4    For all purposes of this Lease, an "AUTHORIZED INSTITUTION" means (a) a
        bank, savings and loan institution, trust or insurance company, real
        estate investment trust, a pension, welfare or retirement fund, an
        eleemosynary institution, a commercial bank or trust company acting as
        trustee in connection with the issuance of any bonds or any other debt
        financing (securitized or otherwise), a special purpose corporation or
        other entity established for the purpose of securitized financing which
        is owned wholly by any other Authorized Institution(s), or any
        combination of the foregoing, acting for its own account or as a
        trustee, provided, that each of the above entities, or any combination
        of such entities, shall qualify as an Authorized Institution for
        purposes of this Lease only if (i) each such entity is not a related
        entity of Tenant and (ii) each such entity, or combination of such
        entities, or the parent or parents of such entity or entities, or a
        guarantor reasonably satisfactory to Landlord of each such entity under
        a guaranty to and for the benefit of Landlord in form and substance
        reasonably satisfactory to Landlord, shall have individual or combined,
        as the case may be, net worth of at least $100,000,000 (subject to CPI
        Increase each Lease Year, commencing with the first Lease Year) as of
        the date of the giving of a Leasehold Mortgage by Tenant to any such
        aforementioned Person or (b) a governmental or quasi-governmental
        instrumentality.

<PAGE>   68

57.     Miscellaneous Provisions.

57.1    This Lease may be executed in several counterparts, but the counterparts
        shall constitute but one and the same instrument.

<PAGE>   69

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

LANDLORD: NEW COMMONWEALTH CENTER LIMITED PARTNERSHIP

                             By: NEW COMMONWEALTH CENTER CORP.,
                                 its general partner

                             By: /s/ Brian J. Collins
                                 -----------------------------------------------
                                 Name:
                                 Title:

TENANT: WASHINGTON D.C. SPORTS CLUB, INC.

                             By: /s/ John M. Gibbons
                                 -----------------------------------------------
                                 Name:
                                 Title:

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