Document:

EMPLOYMENT AGREEMENT

     AGREEMENT,  dated as of May 3, 1999,  between  WELLSFORD  REAL  PROPERTIES,
INC., a Maryland  corporation with offices at 535 Madison Avenue,  New York, New
York 10022 (the "Company"),  and RODNEY F. DU BOIS, an individual residing at 32
Rip Road, Hanover, New Hampshire 03755 (the "Executive").

     WHEREAS,  the Company  desires to employ the  Executive  and the  Executive
desires to be employed by the Company.

     IT IS AGREED:

     1. Duties. (a) During the term of the Executive's  employment hereunder the
Executive  shall  serve and the  Company  shall  employ  the  Executive  as Vice
Chairman of the Board and Chief Operating  Officer to perform (i) such executive
or  administrative  services  for the  Company  consistent  with those of a Vice
Chairman of the Board as may be assigned to the Executive by the Chairman of the
Board and the  directors of the Company and (ii) such services  consistent  with
those of a Chief Operating Officer for companies  engaged in similar  activities
in the real estate  business,  as may reasonably be assigned to the Executive by
the Chairman of the Board,  President or Chief Executive Officer of the Company.
The  Executive  hereby  accepts  such  employment  and  agrees to  perform  such
services.

     (b) The Executive  shall devote such time,  attention  and energies  during
business  hours to the  performance  of his duties  hereunder as is necessary to
properly carry out the responsibilities of his office,  provided,  however, that
the amount of time devoted to his duties shall not exceed 140 days per annum.

     (c) The Executive shall cooperate with the Company,  including  taking such
medical  examinations as the Company  reasonably  shall deem  necessary,  if the
Company  shall  desire to obtain  medical,  disability  or life  insurance  with
respect to the Executive. Where reasonably possible, the Company shall cooperate
with  the  Executive's  request  to  have  such  examinations  performed  by the
Executive's personal physician or another physician reasonably acceptable to the
Executive.

     (d) The Executive shall work out of the Company's  business offices located
in Hanover, New Hampshire but shall undertake such reasonable business travel as
may be necessary to perform his duties under this Agreement,  including  without
limitation, traveling to the Company's New York offices (for which the Executive
shall be reimbursed  pursuant to Section 4 below for costs and expenses incurred
in connection therewith);  provided,  that the Executive's business travel shall
not, in the aggregate, exceed10 days in any given month.

     2.  Employment  Term.  This  Agreement  shall  commence  on May 3, 1999 and
shall continue in effect through May 2, 2001.

                              Exhibit 10.87 Page 1
<PAGE>

     3.  Compensation.  For all services  rendered by the Executive  pursuant to
this Agreement:

     (a) The  Company  shall  pay to the  Executive  (i) an annual  base  salary
consisting  of  $200,000  per  annum  ("Cash   Compensation")  and  (ii)  20,000
restricted  shares  ("Restricted  Shares") of common  stock,  $.01 par value per
share,  of the  Company,  to be  issued  to the  Executive  on the date  hereof,
provided that  one-eighth of such Shares shall vest  quarterly on the second day
of each August, November, February and May during the term of this Agreement and
the Shares shall be subject to the other terms and  conditions set forth in that
certain   Restricted  Share  Grant  Letter  Agreement  (the  "Restricted   Share
Agreement")  entered  into  between  Executive  and the  Company  as of the date
hereof.  All Cash Compensation shall be paid bi- weekly or at such other regular
intervals,  not less frequently than monthly,  as the Company may establish from
time to time for executive employees of the Company.

     (b) In addition to the compensation set forth in subsection 3(a) above, the
Executive shall be awarded such bonus for each calendar year or partial calendar
year of his employment  hereunder as the Board of Directors of the Company shall
determine in their sole  discretion.  In determining  such bonus,  the Executive
understands that the directors will consider,  without limitation, the following
factors with respect to the applicable  calendar year or partial  calendar year:
the Company's financial performance, business performance and growth during such
period; Executive's responsibilities as an officer of the Company (including his
participation in transactions of particular  financial or business  significance
to the  Company)  during such  period;  the total  compensation  package paid to
executive  officers  having  similar  responsibilities  as the Executive who are
employed by entities which are similar to the Company; and such other factors as
the  directors may deem  appropriate  in their sole  discretion.  Such bonus may
consist of cash; grants of Shares; options to purchase Shares; loans to purchase
Shares; share appreciation rights (whether independent of or in conjunction with
awards of  options);  and such  other  awards  as the  directors  in their  sole
discretion may deem appropriate and which they believe are in furtherance of the
growth of long-term stockholder value of the Company.

                              Exhibit 10.87 Page 2
<PAGE>

     (c) As of the date  hereof,  the  Executive  shall be granted  options (the
"Options")  to purchase  100,000  Shares.  Options with respect to 50,000 Shares
shall vest on each of December 15, 1999 and December 15, 2000. The Options shall
have an  exercise  price of $10.06  per share  and  other  terms and  conditions
substantially  similar  to those set  forth in the  options  then most  recently
granted generally to executive officers of the Company, as more specifically set
forth in those certain Share Option  Agreements (the "Share Option  Agreements")
to be entered into between the  Executive and the Company as of the date hereof.
To the  greatest  extent  reasonably  possible,  the Company  shall use its best
efforts to ensure that the options granted to the Executive qualify as incentive
stock options.  Consistent  with the  qualification  of the Options as incentive
stock options, the Options shall have an exercise period equal to the shorter of
10 years  from the date  hereof  or 90 days  after  the date of  termination  of
Executive's employment with the Company.  Notwithstanding the foregoing,  in the
event that (i) the  Executive's  employment  with the Company is terminated  for
reasons other than for Cause (as defined below), (ii) the Executive continues to
serve as a member of the  Company's  Board of Directors  and (iii) the Executive
does not exercise  all of the Options  within 90 days of such  termination,  all
unexercised Options shall  automatically,  without any action, be converted into
non-qualified  stock options  generally  having the same terms and conditions as
are set forth in the Share Option  Agreements  except that such Options shall be
exercisable by the Executive during the remainder of the period that ends on the
shorter  of 10 years  from the date  hereof  or 5 years  from the date  that the
Executive ceases to serve as a director.

     4. Expenses.  (a) The Company shall reimburse the Executive for all out-of-
pocket expenses  actually and necessarily  incurred by him in the conduct of the
business of the Company against reasonable substantiation submitted with respect
thereto.

     (b) Unless the provisions of subsection 4(c) below shall apply, the Company
shall reimburse the Executive for all legal fees and related expenses (including
the costs of experts, evidence and counsel) paid by the Executive as a result of
(i) the  termination  of  Executive's  employment  (including  all such fees and
expenses,  if any,  incurred in contesting or disputing any such  termination of
employment),  (ii) the  Executive  seeking  to  obtain or  enforce  any right or
benefit  provided  by  this  Agreement  or by  any  other  plan  or  arrangement
maintained  by the Company  under which the  Executive  is or may be entitled to
receive  benefits,  (iii)  the  Executive's  hearing  before  the  directors  as
contemplated  in subsection  6(c) of this  Agreement or (iv) any action taken by
the Company  against the Executive;  provided,  however,  that the Company shall
reimburse the legal fees and related expenses  described in this subsection 4(b)
only if and when a final  judgement  has been rendered in favor of the Executive
and all appeals related to any such action have been exhausted.

     (c) The Company  shall pay all legal fees and related  expenses  (including
the costs of experts,  evidence and counsel)  incurred by the  Executive as they
become  due as a  result  of  (i)  the  termination  of  Executive's  employment
(including  all such  fees and  expenses,  if any,  incurred  in  contesting  or
disputing any such  termination of  employment),  (ii) the Executive  seeking to
obtain or enforce  any right or benefit  provided  by this  Agreement  or by any
other plan or arrangement maintained by the Company under which the Executive is
or may be entitled to

                              Exhibit 10.87 Page 3
<PAGE>

receive  benefits,  (iii)  the  Executive's  hearing  before  the  directors  as
contemplated  in subsection  6(c) of this  Agreement or (iv) any action taken by
the  Company  against  the  Executive,  unless  and until such time that a final
judgement has been  rendered in favor of the Company and all appeals  related to
any such action have been exhausted;  provided,  however, that the circumstances
set forth above occurred on or after a change in control of the Company.

     (d) For  purposes of this  Agreement,  a "change in control of the Company"
shall be deemed to occur if:

     (i) there shall have occurred a change in control of a nature that would be
required to be reported in response to Item 6(e) of Schedule  14A of  Regulation
14A  promulgated  under the  Securities  Exchange  Act of 1934,  as amended (the
"Exchange Act"), as in effect on the date hereof,  whether or not the Company is
then subject to such reporting requirement,  provided, however, that there shall
not be deemed to be a "change in control" of the Company if immediately prior to
the  occurrence of what would  otherwise be a "change in control" of the Company
(A) the Executive is the other party to the transaction (a "Control Event") that
would  otherwise  result in a "change  in  control"  of the  Company  or (B) the
Executive  is an  executive  officer,  trustee,  director or more than 5% equity
holder of the other  party to the Control  Event or of any  entity,  directly or
indirectly, controlling such other party,

     (ii) the Company merges or consolidates with, or sells all or substantially
all of its  assets  to,  another  company  (each,  a  "Transaction"),  provided,
however,  that a  Transaction  shall not be  deemed  to  result in a "change  in
control" of the Company if (A) immediately  prior thereto the  circumstances  in
(i)(A)  or (i)(B)  above  exist,  or (B) (1) the  shareholders  of the  Company,
immediately  before such  Transaction own,  directly or indirectly,  immediately
following  such  Transaction  in excess of fifty  percent  (50%) of the combined
voting power of the  outstanding  voting  securities of the corporation or other
entity  resulting  from  such  Transaction  (the  "Surviving   Corporation")  in
substantially the same proportion as their ownership of the voting securities of
the Company immediately before such Transaction and (2) the individuals who were
members of the Company's Board of Directors  immediately  prior to the execution
of the agreement  providing for such Transaction  constitute at least a majority
of the members of the board of directors  or the board of trustees,  as the case
may be,  of the  Surviving  Corporation,  or of a  corporation  or other  entity
beneficially  directly or indirectly owning a majority of the outstanding voting
securities of the Surviving Corporation, or

     (iii) the Company acquires assets of another company or a subsidiary of the
Company  merges  or   consolidates   with  another   company  (each,  an  "Other
Transaction") and (A) the shareholders of the Company,  immediately  before such
Other Transaction own, directly or indirectly,  immediately following such Other
Transaction 50% or less of the combined  voting power of the outstanding  voting
securities  of the  corporation  or  other  entity  resulting  from  such  Other
Transaction (the "Other Surviving  Corporation") or (B) the individuals who were
members of the Company's Board of Directors  immediately  prior to the execution
of the agreement  providing for such Other  Transaction  constitute  less than a
majority of the members of the board of directors  or the board of trustees,  as
the case may be, of the Other  Surviving  Corporation,  or of a  corporation  or
other entity beneficially directly or indirectly owning a majority of the

                              Exhibit 10.87 Page 4
<PAGE>

outstanding  voting  securities of the Other  Surviving  Corporation,  provided,
however, that an Other Transaction shall not be deemed to result in a "change in
control" of the Company if immediately prior thereto the circumstances in (i)(A)
or (i)(B) above exist.

     5.  Benefits.  The  Executive  shall be entitled to such paid vacation time
each year and such other medical and other benefits as are afforded from time to
time to all executive employees of the Company.  The Company shall indemnify the
Executive in the performance of his duties pursuant to the bylaws of the Company
and  to the  fullest  extent  allowed  by  applicable  law,  including,  without
limitation, legal fees.

     6. Earlier  Termination.  (a) If the Executive shall die during the term of
this Agreement, this Agreement shall be deemed to have been terminated as of the
date  of the  Executive's  death,  and  the  Company  shall  pay  to  the  legal
representative  of the  Executive's  estate all monies  due  hereunder  prorated
through the last day of the month during which the Executive shall have died.

     (b) If the  Executive  shall  fail,  because of illness or  incapacity,  to
render the services contemplated by this Agreement for six consecutive months or
for shorter  periods  aggregating  nine months in any calendar year, the Company
may  determine  (as set forth in  subsection  (d) below) that the  Executive has
become  disabled.  If within  thirty  (30) days after the date on which  written
notice of such determination is given to the Executive,  the Executive shall not
have returned to the continuing  full-time  performance of his duties hereunder,
this  Agreement and the  employment of the Executive  hereunder  shall be deemed
terminated  and the Company  shall pay to the Executive all monies due hereunder
prorated through the last day of the month during which such  termination  shall
occur.

     (c) The Company,  by written notice to the Executive  specifying the reason
therefor,  may terminate  this  Agreement  for Cause as  determined  pursuant to
subsection (d) below. As used herein, "Cause" shall be defined as actions by the
Executive which constitute (i) fraud, illegal or willful misconduct or dishonest
conduct, (ii) a breach of any duties,  responsibilities or obligations hereunder
or (iii) habitual abuse of drugs or alcohol.  In such event, the Executive shall
be paid the Executive's  full base salary through the date of termination at the
rate in effect at the time notice of  termination is given and the Company shall
thereafter have no further obligations to this Executive under this Agreement.

     (d) A determination  of disability or Cause shall be made in the reasonable
and sole discretion of the Company's  Chairman of the Board of the Company.  The
Company's Board of Directors  shall,  upon request of the Executive,  review the
decision of whether the  Executive has become  disabled or has been  discharged,
released  or  terminated  for Cause and the Board of  Directors  shall  confirm,
modify or reverse such determination in its sole discretion.

     (e) The Company or Executive may terminate  this Agreement if any change in
control of the Company occurs.

                              Exhibit 10.87 Page 5
<PAGE>

     7.  Compensation  Upon Termination Upon a Change in Control.  (a)If after a
change in control of the Company the Executive's  employment shall be terminated
(i) by the Company other than for Cause or (ii) by the  Executive,  then (w) the
Company shall pay the  Executive,  not later than the date of  termination,  all
Cash  Compensation  payable to the Executive  under this  Agreement  through the
Termination  Date,  including  compensation  for accrued  vacation time, (x) the
Company shall pay the Executive 2.99 times the "base amount" (the "Base Amount")
within the meaning of sections  280G(b)(3)  and 280G(d) of the Internal  Revenue
Code of 1986, as amended (the  "Code"),  and any  applicable  temporary or final
regulations  promulgated  thereunder,  or  its  equivalent  as  provided  in any
successor  statute  or  regulation,  (y) all  Restricted  Shares  granted to the
Executive  hereunder  shall  immediately  vest in accordance  with the terms and
conditions of the Restricted  Share Agreement and (z) all Options granted to the
Executive hereunder shall immediately vest and be exercisable in accordance with
the terms of the Share Option Agreements dated as of the date hereof. If Section
280G of the Code (and any  successor  provisions  thereto)  shall be repealed or
otherwise be  inapplicable,  then the Base Amount payable under clause (x) above
shall equal 2.99 times the average of the Executive's annual compensation during
the term of this Agreement.  For purposes of determining annual  compensation in
the  preceding  sentence,  compensation  payable to the Executive by the Company
shall include  every type and form of  compensation  includible  in  Executive's
gross income in respect of his  employment  by the Company  (including,  without
limitation,  all income  reported  on an  Internal  Revenue  Service  Form W-2),
compensation recognized as a result of the Executive's exercise of stock options
or sale of the stock so acquired and including,  without limitation,  any annual
bonus payments  previously paid to such  Executive.  For purposes of calculating
the Base Amount  within the meaning of  Sections  280G(b)(3)  and 290G(d) of the
Code and annual compensation in the second preceding sentence, any income of the
Executive that  constitutes a "parachute  payment" within the meaning of Section
280G(b)2)  of  the  Code  shall  not  be  taken  into  account  in  making  such
calculations.

     (b) To the extent any  benefits  to be granted to the  Executive  hereunder
constitute a "parachute payment" within the meaning of Section 280G(b)(2) of the
Code, and the Executive  would otherwise be liable for an excise tax pursuant to
Code  Section  4999,  there  shall be a  reduction  in the  benefits  payable or
available to the Executive hereunder such that the total parachute payments will
be less than three (3) times the  Executive's  Base  Amount with the result that
the excise tax under Code Section 4999 will not be payable;  provided,  however,
that such  reduction  shall occur only if the Executive  shall realize a greater
after tax economic  benefit by making such  reduction  than if no reduction were
made.

     (c) The  Executive  shall not be  required  to  mitigate  the amount of any
payment provided for in this Section 7 by seeking other employment or otherwise,
nor shall the amount of any payment or benefit provided for in this Section 7 be
reduced by any compensation earned by him as the result of employment by another
employer or by retirement benefits after the date of termination,  or otherwise,
except as specifically provided in this Section 7.

                              Exhibit 10.87 Page 6
<PAGE>

     8. Protection of Confidential Information; Non-Competition.

     (a) The Executive acknowledges that (i) the Company will suffer substantial
damage which will be difficult to compute if the  Executive  violates any of the
provisions  of this Section 8, and (ii) the  provisions  of this  Agreement  are
reasonable and necessary for the protection of the business of the Company.

     (b) The  Executive  agrees that he will not at any time,  either during the
term of this Agreement or thereafter, divulge to any person, firm or corporation
any  material  information  obtained  or learned by him during the course of his
employment with the Company, with regard to the operational, financial, business
or other affairs of the Company,  its officers or  directors,  except (i) in the
course of performing his duties hereunder, (ii) with the Chairman of the Board's
or  President's  express  written  consent;  (iii) to the  extent  that any such
information  is in the public  domain other than as a result of the  Executive's
breach  of any of his  obligations  hereunder;  or  (iv)  where  required  to be
disclosed by court order, subpoena or other government process.

     (c) Upon  termination of his employment  with the Company,  or any time the
Company may so request,  the Executive will promptly  deliver to the Company all
memoranda, notes, records, reports, manuals, drawings, blueprints,  software and
other documents (and all copies thereof) relating to the business of the Company
and all property associated  therewith,  which he may then possess or have under
his control.

     (d) For the  longer of (i) 1 year from the date  hereof or (ii) the term of
this  Agreement  (including  any  remaining  portion of the stated  term of this
Agreement  following  the  termination  of  the  Executive's  employment  by the
Executive or by the Company for Cause,  unless such  termination  occurs after a
change in control of the Company),  and provided the Executive's  employment has
not been  terminated by the Company  without  Cause,  the Executive  without the
prior written  permission of the Chairman of the Board or President shall not in
the United States, its territories or possessions,  directly or indirectly,  (i)
enter  into  the  employ  of or  render  any  services  to any  person,  firm or
corporation engaged in any competitive business;  (ii) engage in any competitive
business for his own account;  (iii) become associated with or interested in any
competitive business as an individual, partner, shareholder, creditor, director,
officer, principal,  agent, employee,  director,  consultant,  advisor or in any
other  relationship  or  capacity;  (iv) employ or retain,  or have or cause any
other  person or entity to employ or  retain,  any person  who was  employed  or
retained by the Company while the Executive was employed by the Company;  or (v)
solicit,  interfere with, or endeavor to entice away from the Company any of its
customers  or sources  of  supply.  However,  nothing  in this  Agreement  shall
preclude the Executive from  investing his personal  assets in the securities of
any  corporation  or other  business  entity  which is engaged in a  competitive
business if such  securities  are traded on a national  stock exchange or in the
over-the-counter   market  and  if  such  investment  does  not  result  in  his
beneficially  owning,  at any time, more than 1% of the  publicly-traded  equity
securities  of such  competitor.  A competitive  business  shall not include any
publicly owned  enterprise  engaged in such a business outside of the geographic
regions and states in which the Company  operates at the time of the termination
of this Agreement.

                              Exhibit 10.87 Page 7
<PAGE>

     (e) If the  Executive  commits  a  breach  of  any  of  the  provisions  of
subsection (b) or (d) above, the Company shall have the right and remedy to have
the  provisions  of this  Agreement  specifically  enforced by any court  having
equity jurisdiction,  it being acknowledged and agreed by the Executive that the
services  being rendered  hereunder to the Company are of a special,  unique and
extraordinary character and that any such breach or threatened breach will cause
irreparable  injury to the  Company and that money  damages  will not provide an
adequate  remedy to the Company.  Each of the rights and remedies  enumerated in
this  subsection (e) shall be  independent of the other,  and shall be severally
enforceable,  and such rights and  remedies  shall be in addition to, and not in
lieu of, any other  rights and remedies  available  to the Company  under law or
equity.

     (f) If any provision of subsection  (b) or (d) is held to be  unenforceable
because of the scope, duration or area of its applicability, the tribunal making
such determination shall have the power to modify such scope, duration, or area,
or all of them,  and such  provision or  provisions  shall then be applicable in
such modified form.

     9. Governing  Law;  Arbitration.  This Agreement  shall be governed by, and
construed  in  accordance  with,  the  internal  laws of the  State of New York,
without  regard to New  York's  conflicts  of law  principles.  Any  dispute  or
controversy arising under this Agreement,  or out of the interpretation  hereof,
or based upon the breach hereof,  shall be resolved by  arbitration  held at the
offices  of the  American  Arbitration  Association  in the  City of New York in
accordance with the rules and regulations of such association  prevailing at the
time of the demand for  arbitration by either party hereto,  and the decision of
the  arbitrator  or  arbitrators  shall be final and binding  upon both  parties
hereto,  provided,  however,  that the arbitrator or arbitrators shall only have
the power and authority to interpret,  and not to modify or amend, the terms and
provisions  hereof.  Judgment  upon  an  award  rendered  by the  arbitrator  or
arbitrators   may  be  entered  in  any  court  having   jurisdiction   thereof.
Notwithstanding  anything  contained  in this Section 9, either party shall have
the right to seek preliminary  injunctive relief in any court in the City of New
York in aid of, and pending the final decision in, the arbitration proceeding.

     10. Entire Agreement. This Agreement sets forth the entire agreement of the
parties  and  is  intended  to  supersede  all  prior  employment  negotiations,
understandings  and agree ments. No provision of this Agreement may be waived or
changed,  except by a writing signed by the party to be charged with such waiver
or change.

     11.  Successors;  Binding  Agreement.  This  Agreement  shall  inure to the
benefit  of  and  be   enforceable   by  the   Executive's   personal  or  legal
representatives,  executors,  administrators,  successors,  heirs, distributees,
devisees and legatees.

     12.  Notices.  All  notices  provided  for in this  Agreement  shall  be in
writing,  and shall be deemed to have been duly given when delivered  personally
to the party to receive the same, when given by telex,  telegram or mailgram, or
when mailed first class postage prepaid, by registered or certified mail, return
receipt  requested,  addressed  to the party to  receive  the same at his or its
address above set forth,  or such other address as the party to receive the same
shall have

                              Exhibit 10.87 Page 8
<PAGE>

specified by written notice given in the manner provided for in this Section 12.
All  notices  shall be  deemed  to have  been  given as of the date of  personal
delivery, transmittal or mailing thereof.

     13.  Severability.  If any provision in this  Agreement is determined to be
invalid,  it shall not affect the validity or enforceability of any of the other
remaining provisions hereof.

                              Exhibit 10.87 Page 9
<PAGE>

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

                                       WELLSFORD REAL PROPERTIES, INC.

                                       By:    /s/ Edward Lowenthal
                                              ----------------------------------
                                              Name: Edward Lowenthal
                                              Title: President

                                       EXECUTIVE:

                                       /s/ Rodney F. Du Bois
                                       ----------------------------------
                                       Rodney F. Du Bois

                             Exhibit 10.87 Page 10
<PAGE>August 19, 1999

Mr. James J. Burns
390 Dogwood Lane
Manhasset, NY 11030

Dear Jim:

We are pleased to confirm your agreement to join Wellsford Real Properties, Inc.
as a Senior Vice President and Chief Accounting  Officer,  effective  October 1,
1999.  Your base salary will be at the annual rate of $200,000,  and you will be
eligible for a management bonus at the discretion of the Compensation Committee.
The current  guideline  for a management  bonus for your position is 50% of base
compensation,  prorated of course for any partial calendar year during which the
term of your employment commences or terminates.  Salaries for all employees are
reviewed  each  December,  and yours would be  reviewed as part of that  regular
process,  beginning in December 2000.  Bonuses are considered at the end of each
calendar year and paid early the following  year,  and  frequently are paid in a
combination  of vested stock and cash.  While the final  decision rests with the
Committee,  we will  recommend at least a guideline  bonus to the Committee your
first year,  and of course the  Committee  may  consider  more  generous  grants
depending on individual and company performance.

You will be entitled to all of the employee benefit plans available generally to
our  employees,  and in addition we will  stipulate that you will be entitled to
five weeks  vacation  per annum  (which is more than our norm),  preserving  the
vacation  period you now have at E & Y. At your election you may continue your E
&  Y  health  coverage,  and  the  Company  will  reimburse  you  for  what  its
contribution would have been towards the coverage you decline.

In the event you are terminated  without cause,  you will be entitled to receive
the amount of salary you would have received had your employment continued until
September 30, 2001 at your then current rate of salary, less any salary payments
previously  made  to  you.  This   employment   commitment  will  be  deemed  to
automatically  extend in one year  increments  as of September 30, 2001 and each
September  thereafter  until September 2003 unless notice is given to you by the
Company,  or to the Company by you,  at least 90 days prior to such  anniversary
date, that one party or the other does not wish to continue the commitment.

We will  recommend  to the  Wellsford  Board of  Directors  at its next  regular
meeting the granting of options on 50,000 shares of Wellsford  Real  Properties,
Inc. common stock,  vesting in equal  increments over five years and exercisable
at the fair market value of such common stock on the date of grant. In the event
of a "change of control" (as defined by the Company for other senior  officers),
any of these shares which were not vested would become vested.

It is a pleasure to welcome you to our  Company,  and I look  forward to working
with you!

Yours sincerely,

/s/ Rodney F. Du Bois
---------------------
Rodney F. Du Bois
Vice Chairman

                            Agreed and accepted:
                             /s/ James J. Burns                  8/25/99
                            ---------------------               ---------
                            James J. Burns                      Date

cc:      Jeffrey H. Lynford, Chairman
         Edward Lowenthal, President

                              Exhibit 10.88 Page 1
<PAGE>

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