Republic Plaza Properties Partnership, PFI Republic Limited, Inc., Tax Matters Partner - Page 11

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          on February 1 of the basic rent specified in that schedule for              
          each such period.                                                           
               Pursuant to the rent payment schedule in the lease agree-              
          ment, the total amount of basic rental payments specified in that           
          schedule (1) remained constant at $27,185,083.85 for each of the            
          11-annual lease periods immediately following the 11.5-month                
          period of zero rent, (2) increased to $33,226,213.70 for each of            
          the succeeding 12-annual lease periods, and (3) returned to                 
          $27,185,083.85 for the final annual lease period.  The total rent           
          to be paid during each of the 24-annual lease periods following             
          the 11.5-month period of zero rent was not greater than 10                  
          percent above or 10 percent below the average annual amount of              
          the aggregate basic rent that was to be paid over those 24 years            
          of the lease term.                                                          
               On June 17, 1988, BCE, as lessee under the lease agreement,            
          began immediate economic use of Republic Plaza.  Except for a               
          relatively small amount of space used by BCE for its operations             
          as sublessor of Republic Plaza, at no time during any relevant              
          period did BCE occupy the space it leased in that building under            
          the lease agreement.  BCE, as lessee, was required to pay the               
          basic rent in the amounts and on the dates specified in the lease           
          agreement and the rent payment schedule.  BCE, and not Partner-             
          ship, assumed the risk of subleasing the approximately 29 percent           
          of Republic Plaza that was vacant at the time Partnership and BCE           





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