Document:

INDEMNIFICATION AGREEMENT

     THIS  INDEMNIFICATION  AGREEMENT (the  "AGREEMENT")  is made as of June 25,
2001, by WHITEHALL STREET REAL ESTATE LIMITED  PARTNERSHIP V, a Delaware limited
partnership  ("WHITEHALL V"),  WHITEHALL STREET REAL ESTATE LIMITED  PARTNERSHIP
VI, a Delaware  limited  partnership  ("WHITEHALL  VI"),  WHITEHALL  STREET REAL
ESTATE  LIMITED  PARTNERSHIP  VII, a Delaware  limited  partnership  ("WHITEHALL
VII"), WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP VIII, a Delaware limited
partnership ("WHITEHALL VIII"), WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP
XI, a Delaware limited  partnership  ("WHITEHALL XI"), and WHITEHALL STREET REAL
ESTATE LIMITED PARTNERSHIP XII, a Delaware limited partnership  ("WHITEHALL XII"
and,  collectively with Whitehall V, Whitehall VI, Whitehall VII, Whitehall VIII
and Whitehall XI, the "WHITEHALL  INDEMNITOR"),  and WELLSFORD REAL  PROPERTIES,
INC.,  a  Maryland  corporation  ("WELLSFORD  INDEMNITOR"),  in favor of GENERAL
ELECTRIC CAPITAL CORPORATION,  a New York corporation  ("LENDER").  Whitehall V,
Whitehall VI,  Whitehall VII,  Whitehall VIII,  Whitehall XI,  Whitehall XII and
Wellsford Indemnitor are collectively referred to herein as "INDEMNITOR".

                                R E C I T A L S:
                                ---------------

1.   Pursuant  to  a  Loan   Agreement  of  even  date   herewith   executed  by
Wellsford/Whitehall  Holdings,  L.L.C.,  a Delaware  limited  liability  company
("BORROWER"),  and Lender  (the "LOAN  AGREEMENT"),  Lender has agreed to make a
secured loan to Borrower in the amount of $352,600,000.00 together with interest
thereon (the "LOAN").

2. A portion of the Loan shall be used to refinance  the  Property  described as
"Gateway  Tower" in Schedule  1.1(A) to the Loan  Agreement  (the "GATEWAY TOWER
PROPERTY"). The Gateway Tower Property is owned by WWG 401 North Washington LLC,
a Delaware  limited  liability  company  ("WWG  401"),  which is a  wholly-owned
subsidiary  of  Borrower.  In  consideration  of Lender's  agreement  to allow a
portion  of the  Loan to be used to  finance  or  refinance  the  Gateway  Tower
Property,  WWG 401 is  executing  a Guaranty  of even date  herewith in favor of
Lender  (the  "WWG 401  GUARANTY").  WWG  401's  obligations  under  the WWG 401
Guaranty  will be secured by a Lien on the  Gateway  Tower  Property  and on WWG
401's other assets, as more particularly  described in the Collateral  Documents
executed  by WWG 401 in favor  of  Lender  (the  "WWG  401  GUARANTY  COLLATERAL
DOCUMENTS").

3. Lender  requires,  as a condition  precedent to entering into the Loan,  that
Indemnitor execute and deliver this Agreement to Lender.

     NOW,  THEREFORE,  in consideration  of the premises,  the sum of $10.00 and
other good and valuable consideration,  the receipt and sufficiency of which are
hereby duly acknowledged,  and in order to be of material benefit and assistance
to  Borrower  and in order to  induce  Lender to make  advances  under the Loan,
Indemnitor does hereby covenant and agree as follows:

2. Recitals. Each and all of the foregoing Recitals are true and correct and are
incorporated herein by reference.

3. Capitalized  Terms. All initially  capitalized terms utilized herein,  unless
specifically  otherwise defined herein, shall have the meanings assigned to such
terms in the Loan Agreement.

4. Indemnity.

(1) Indemnitor hereby absolutely,  irrevocably and  unconditionally  indemnifies
and agrees at all times to hold harmless Lender and its successors and permitted
assigns (collectively,  the "INDEMNIFIED  PERSONS"),  and each of them, free and
harmless of and from all obligations,  losses, damages (whether direct, indirect
or consequential),  charges,  liabilities,  claims (legal or equitable),  costs,
expenses and suits,  of any nature  whatsoever  (including  any of the foregoing
which  result from any  settlement  or  compromise  of claims by an  Indemnified
Person,  provided  that  Indemnitor  shall  have  a  reasonable  opportunity  to
participate in the  negotiations  of, and consult with the  Indemnified  Persons
regarding,  any such  settlement or compromise (but the final decision as to any
such settlement or compromise  shall be made by the Indemnified  Parties)) which
any or all of the  Indemnified  Persons may suffer,  incur or be subject to as a
result of the avoidance or any attempted  avoidance or claim of  avoidability by
WWG  401 or any  Affiliate  of WWG  401  (whether  directly  by WWG  401 or such
Affiliate,  as  a  debtor  or  as  a  debtor-in-possession),  or  a  trustee  in
bankruptcy,  assignee  for the benefit of creditors or receiver for any of them,
whether brought on behalf of WWG 401's creditors,  equity holders or estate in a
state or federal  bankruptcy or insolvency  proceeding or brought by any debtor,
debtor-in-possession  or  trustee in  bankruptcy,  assignee  for the  benefit of
creditors  or  receiver  for WWG 401 or any  Affiliate  of WWG 401 or brought on
behalf  of WWG  401 or any  Affiliate  of WWG  401 as a  creditor  of any  other
Affiliate of WWG 401, or by any other Person, of (i) any transfer to (or for the
benefit of) Lender of an interest of WWG 401 in property  (including the payment
of money to Lender by WWG 401 and the  creation  in favor of Lender of a lien or
any other  encumbrance  on property of WWG 401  pursuant to the WWG 401 Guaranty
Collateral  Documents) or (ii) any obligation  incurred by WWG 401 under the WWG
401 Guaranty or the WWG 401 Guaranty  Collateral  Documents,  which avoidance or
attempted  avoidance  is brought  pursuant  to any state or  federal  fraudulent
transfer,  fraudulent conveyance,  debtor-creditor,  or partnership or corporate
powers/authority  statutory or common law (including Sections 544, 547 or 548 of
Title 11 of the United States Code (or such successor statutory provision as may
provide for a similar  remedy) and the Uniform  Fraudulent  Transfer Act and the
Uniform Fraudulent Conveyance Act (as adopted by a state)).

(2) Indemnitor  acknowledges  that Lender has agreed to disburse the proceeds of
the Loan in reliance upon Indemnitor's indemnities, representations,  warranties
and  covenants in this  Agreement.  For these  reasons,  it is the  intention of
Indemnitor and Lender that the  provisions of this Agreement  shall (solely with
respect to this Agreement)  supersede any provisions in the Loan Documents which
in any way limit the personal  liability of Indemnitor,  and Indemnitor shall be
personally liable for any and all obligations  arising under this Agreement.  In
the event of any  conflict  between the terms of this  Agreement  and any of the
other Loan Documents (including the Loan Agreement), this Agreement shall govern
and control in all respects.

5.  Obligations  Remain in  Effect.  The  liability  of  Indemnitor  under  this
Agreement shall remain in effect  regardless of any law,  regulation,  or decree
now or hereafter in effect in any jurisdiction  which might in any manner affect
any of such terms or provisions or the rights of Lender with respect  thereto as
against  Borrower or WWG 401 and  irrespective  of the  validity,  regularity or
enforceability thereof, or of any other condition,  contingency or circumstances
whatsoever,  whether occurring prior to or after the date hereof,  whether known
or unknown to Indemnitor, Borrower, WWG 401 or Lender, and whether or not any of
the  same may or  might  vary the risk or  affect  the  rights  or  remedies  of
Indemnitor.  Unless  Lender shall  expressly  agree  otherwise  in writing,  the
obligations  of  Indemnitor  under  this  Agreement  shall  not  be  reduced  or
discharged  by any  modifications  of the  Loan  Agreement  or  Loan  Documents,
including  changes  in the  terms of  disbursement  or  changes  in the terms of
repayment  thereof,  modifications,  extensions,  substitutions  or  renewals or
changes in payment  dates,  releases of security in whole or in part, or changes
in interest rate.

6.  Cooperation.  Each Indemnified  Person shall promptly forward to Indemnitor,
and Indemnitor  shall promptly forward to all Indemnified  Persons,  any and all
notices,  demands and communications  that Indemnitor or any Indemnified Person,
as the case may be, or anyone on its  respective  behalf may  receive,  from any
Person in connection with any claims, debts,  obligations and demands covered by
the indemnity contained herein.

7. Payment  Obligation.  To the extent of  Indemnitor's  obligations  hereunder,
Indemnitor  waives  any right to  require  that any  action be  brought  against
Borrower,  WWG 401 or any other  Person or to require  that resort be had to any
security.  Lender may, at its option,  proceed  against  Indemnitor in the first
instance, without first proceeding against Borrower, WWG 401 or any other Person
and without  first  resorting to any security held by it as collateral or to any
other remedies,  at the same or different  times, as it may deem advisable;  and
the  liability of Indemnitor  hereunder  shall not be affected or impaired by an
acceptance by Lender of any security for, or by any failure,  delay,  neglect or
omission by Lender to realize upon or protect any such  indebtedness,  liability
or  obligation  or  any  notes  or  other  instruments  evidencing  same  or any
collateral or security therefor.

8. Consent to Extensions, Renewals and Releases. Without in any manner affecting
the liability of Indemnitor, Indemnitor hereby consents that Lender from time to
time,  before or after any  default  by  Borrower  or WWG 401,  with or  without
further  notice to or  assent  from  Indemnitor,  may,  and upon such  terms and
conditions as Lender may deem advisable:

(1) extend in whole or in part (by  renewal or  otherwise),  modify,  accelerate
(only  after  default),  change  or  release  any  indebtedness,   liability  or
obligation  of Borrower or WWG 401 to Lender or of any other Person  secondarily
or otherwise liable to Lender for any  indebtedness,  liability or obligation of
Borrower or WWG 401, or waive any default with respect thereto;

(2) sell, release,  surrender,  modify,  impair,  exchange,  substitute or (if a
chose or choses in action)  extend the duration or the time for  performance  or
payment of any and all  property,  of any nature and from  whomsoever  received,
held by Lender as security for the payment or performance  of any  indebtedness,
liability or obligation of Borrower or WWG 401 to Lender; and

(3) settle, adjust or compromise any claim of Lender against Borrower or WWG 401
or any other  Person  secondarily  or  otherwise  liable  for any  indebtedness,
liability or obligation of Borrower or WWG 401.

     Indemnitor  hereby  ratifies  and  confirms  any such  extension,  renewal,
change,  release,  waiver,  surrender,   exchange,   modification,   impairment,
substitution,  settlement,  adjustment  or  compromise  and agrees that the same
shall be binding upon Indemnitor, and Indemnitor hereby expressly waives any and
all defenses,  counterclaims  or offsets which Indemnitor might or could have by
reason thereof,  it being understood that Indemnitor shall,  except as otherwise
provided  herein,  at all times be bound by this  Agreement and remain liable to
Lender hereunder.

9.  Waivers by  Indemnitor.  Indemnitor  hereby  waives,  to the fullest  extent
permitted under applicable law:

(1)  notice of  acceptance  of this  Agreement  by Lender,  or of the  creation,
renewal or accrual of any  liability of Borrower or WWG 401,  present or future,
or of the reliance of Lender upon this Agreement (it being understood that every
indebtedness,  liability  and  obligation of Borrower or WWG 401 to Lender shall
conclusively  be  presumed  to have been  created,  contracted  or  incurred  in
reliance upon this Agreement);

(2) demand of payment  from any Person  indebted  in any manner on or for any of
the liabilities or obligations hereby indemnified;

(3)  presentation  for payment of any  instrument of Borrower or WWG 401, or any
other  Person,  protest  thereof and notice of its dishonor to any party thereto
and to Indemnitor; and

(4) any duty on the part of Lender to  disclose  to  Indemnitor  any facts which
Lender  may now or  hereafter  know about  Borrower  or WWG 401,  regardless  of
whether Lender has reason to believe that any such facts materially increase the
risk  beyond  that which  Indemnitor  intends to assume or has reason to believe
that such facts are unknown to  Indemnitor  or has a reasonable  opportunity  to
communicate  such facts to  Indemnitor,  it being  understood  and  agreed  that
Indemnitor is fully  responsible for being and keeping informed of the financial
condition of Borrower and WWG 401 and of all  circumstances  bearing on the risk
of  non-payment  or  non-performance  of Borrower's or WWG 401's  obligations to
Lender.

10.  Representations and Warranties of Indemnitor.  Indemnitor  acknowledges the
full  reliance  by Lender upon the  following  representations  and  warranties.
Wellsford Indemnitor, as to Wellsford Indemnitor only, and Whitehall Indemnitor,
as to Whitehall Indemnitor only, represents and warrants to Lender as follows:

(1)  Indemnitor  is  a  limited   partnership,   limited  liability  company  or
corporation  (as set forth in the  opening  paragraph  hereof)  duly  organized,
validly existing and in good standing under the laws of the Delaware or Maryland
(as set forth in the opening  paragraph),  is qualified to do business in all of
the states where the real properties owned by it are located and otherwise where
such  qualification  is  necessary  to  operate  its  business,   has  paid  all
organizational  and filing fees,  and has the power and authority to own or hold
under  lease,  the assets it purports to own or hold under  lease,  to make this
Agreement and to perform all of its obligations hereunder.

(2) The execution, delivery and performance of this Agreement (i) have been duly
authorized by all requisite  corporate,  partnership  and/or  limited  liability
company  action;  (ii) will not violate or be in conflict with (A) any provision
of applicable  law  (including  any  applicable  usury or similar law),  (B) any
order, writ, judgment, rule or regulation of any Governmental Authority, (C) the
organizational documents of Indemnitor or (D) any indenture,  agreement or other
instrument to which  Indemnitor is a party or by which  Indemnitor or any of its
properties  or assets is or may be bound;  (iii) will not result in the creation
or imposition of any Lien upon any of  Indemnitor's  properties or assets except
as expressly contemplated by this Agreement; and (iv) do not require the consent
or approval of any  Governmental  Authority  or any other Person other than such
consents  as have been  obtained  and  copies of which  have been  delivered  to
Lender.

(3) There are no actions,  suits or proceedings  (whether or not  purportedly on
behalf  of  Indemnitor)  pending  or,  to  the  best  knowledge  of  Indemnitor,
threatened against Indemnitor, at law, in equity, in arbitration or before or by
any court,  board, local government or instrumentality of any federal,  state or
local  government  or of any  agency  or  subdivision  thereof,  or  before  any
arbitrator  or  panel  of   arbitrators,   which  involves   Indemnitor  or  the
transactions  contemplated  by this  Agreement  and which  would have a material
adverse effect on  Indemnitor's  ability to perform its  obligations  under this
Agreement,  and  Indemnitor is not in default (and has not received any order or
notice of any default)  with respect to any final  judgment,  writ,  injunction,
decree,  rule or regulation  of any  Governmental  Authority  which would have a
material adverse effect on Indemnitor's ability to perform its obligations under
this Agreement.

(4) This Agreement  constitutes the valid and binding  obligations of Indemnitor
enforceable in accordance with its terms,  except as such enforceability and the
availability  of certain rights and remedies  provided for herein may be limited
by bankruptcy, insolvency or other similar laws of general application affecting
the enforcement of creditors' rights or by general principles of equity limiting
the availability of equitable remedies or the extent to which equitable defenses
may be raised.

(5) The  information  contained in all written  financial  statements,  reports,
balance sheets and other written financial  information  delivered by Indemnitor
and relating to Indemnitor to Lender is true, accurate and complete information,
in all material respects, concerning the financial condition of Indemnitor.

(6) No information contained in this Agreement, the written financial statements
and other written financial information,  or any written, statement furnished to
Lender  by or on  behalf of  Indemnitor,  contains  any  untrue  statement  of a
material fact or omits to state a material fact necessary to make the statements
contained herein or therein not misleading in light of the  circumstances  under
which made.

     The  representations  and  warranties  set  forth in this  Section  9 shall
survive the  execution,  delivery and  performance  of this  Agreement and shall
continue  until  all of the  obligations  provided  herein  have  been  paid and
performed in full.

11. Maintenance of Net Worth. Until the first to occur of (a) payment in full of
all  Obligations,  (b) release of the Gateway Tower Property in accordance  with
Section 2.4 of the Loan Agreement, or (c) transfer of the Gateway Tower Property
to Borrower in accordance  with Section 2.10 of the Loan  Agreement,  Indemnitor
shall maintain a Net Worth (defined below) of at least $100,000,000.  Subject to
the notice and cure period  described in Section 10.1(12) of the Loan Agreement,
Indemnitor's  failure to maintain  such Net Worth at any time during such period
shall  constitute an Event of Default under the Loan Agreement.  As used herein,
"NET WORTH"  means,  as of any date,  the sum of (i) the combined  Whitehall Net
Worth (as defined below) for all Whitehall  Indemnitors  plus (ii) Wellsford Net
Worth (as  defined  below);  provided,  however,  that if either  the  Whitehall
Parties or  Wellsford  buys 100% of the other's  ownership  interests in WWG, as
permitted under Section 9.4(2) of the Loan  Agreement,  then effective upon such
transfer of interests in WWG, "Net Worth" shall mean Whitehall Net Worth (if the
Whitehall Parties acquire  Wellsford's  interests in WWG) or Wellsford Net Worth
(if Wellsford acquires the Whitehall Parties' interests in WWG), as applicable.

     As used  above,  "WHITEHALL  NET  WORTH"  means,  as of any date,  for each
Whitehall Indemnitor, the sum of (a) Available Contributions (as defined in each
Indemnitor's  Partnership  Agreement) as of such date,  plus (b) Total Partners'
Capital as shown in the Combined Statements of Assets,  Liabilities and Partners
Capital in  Whitehall  Indemnitor's  most recent  combined  quarterly  financial
statements.  The terms "Available  Contributions"  and "Total Partners' Capital"
used  in  the  preceding   sentence  are  line  items   appearing  in  Whitehall
Indemnitor's combined financial statements for the year ended December 31, 2001.
Whitehall  Indemnitor  agrees  not to make any  changes  in the  terminology  or
accounting  methodology  used in  Whitehall  Indemnitor's  financial  statements
without  Lender's  consent (which consent shall not be unreasonably  withheld or
delayed),  except  that  Whitehall  Indemnitor  may  make any  such  changes  in
accordance with GAAP.

     As used above, "WELLSFORD NET WORTH" means, as of any date, an amount equal
to (a) the value, in the aggregate,  of Wellsford  Indemnitor's  assets less (b)
the value, in the aggregate,  of Wellsford Indemnitor's  intangible assets (e.g.
goodwill,  etc.) less (c) the value, in the aggregate, of Wellsford Indemnitor's
liabilities,   all  as  determined  and  calculated  in  accordance  with  GAAP,
consistently applied.

12. Financial  Statements.  Indemnitor covenants and agrees that, from and after
the Closing  Date and for so long as  Indemnitor  is required  under  Section 10
above to  maintain  a Net Worth of at least  $100,000,000,  it shall  deliver to
Lender:

(1) Within  ninety  (90) days after the end of each fiscal  quarter,  commencing
with the quarter  ending June 30,  2001,  a copy of the  unaudited  consolidated
balance  sheet of  Indemnitor  as of the close of such  quarter  and the related
statement of income and cash flows for that portion of Indemnitor's  fiscal year
ending as of the close of such  quarter,  all  prepared by the general  partner,
chief financial officer or similar officer of Indemnitor in accordance with GAAP
(subject to the terms set forth herein and to normal  year-end  adjustments  and
excluding  footnotes  and  supporting  schedules,  if  same  are  not  available
(provided that such footnotes and supporting schedules are promptly delivered to
Lender when same become  available))  and accompanied by the  certification,  on
behalf of Indemnitor, by the general partner, chief financial officer or similar
officer of Indemnitor  that (i) all such  financial  statements are complete and
correct and present fairly in accordance  with GAAP (subject to normal  year-end
adjustments)  the financial  position,  the results of  operations  and the cash
flows of Indemnitor as at the end of such quarter and for the period then ended,
and (ii)  Indemnitor is in compliance  with the Net Worth covenant  contained in
Section 10 above.

(2) Within one hundred  twenty  (120) days after the close of each Fiscal  Year,
commencing with Indemnitor's  fiscal year ended December 31, 2001, a copy of the
annual audited consolidated  financial  statements of Indemnitor,  consisting of
balance  sheets and  statements  of income and capital  accounts  and cash flows
(setting forth  beginning with the reports for  Indemnitor's  fiscal year ending
December 31, 2001 in comparative  form in each case the figures for the previous
fiscal year),  which financial  statements  shall be prepared in accordance with
GAAP,  certified  (only  with  respect  to  the  financial  statements)  without
qualification by the independent certified public accountants regularly retained
by Indemnitor,  or any other firm of independent certified public accountants of
recognized  national standing selected by Indemnitor,  and acceptable to Lender,
and  accompanied by a  certification  of the general  partner,  chief  financial
officer or similar officer of Indemnitor that (i) all such financial  statements
are  complete  and  correct  and  present  fairly  in  accordance  with GAAP the
financial  position,  the results of operations and the cash flows of Indemnitor
as at the end of such year and for the period then ended, and (ii) Indemnitor is
in compliance with the Net Worth covenant contained in Section 10 above.

(3) Lender  acknowledges that the financial  statements to be delivered pursuant
to this Section 11 shall be delivered  separately  for each of (i) the Wellsford
Indemnitor, (ii) Whitehall V and Whitehall VI, (iii) Whitehall VII and Whitehall
VIII and (iv) Whitehall XI and Whitehall XII; provided, however, that so long as
Wellsford  Indemnitor is a public company subject to the reporting  requirements
of the Securities Exchange Act of 1934 and the required financial  statements of
Wellsford  Indemnitor  are  available  to the  general  public  (within the time
periods required above) at no expense to Lender, the Wellsford  Indemnitor shall
not be required to separately deliver such financial statements.

13.  Interest  and  Expenses  of  Enforcement.  Any sum  required  to be paid by
Indemnitor  to Lender  pursuant to the terms hereof  shall bear  interest at the
Default Rate from the date said sums should have been paid by  Indemnitor  until
paid by Indemnitor.  Indemnitor  agrees to pay any and all reasonable  costs and
expenses  incurred  by Lender in  enforcing  any rights or  remedies  under this
Agreement.

14. Consideration. Indemnitor acknowledges that its undertakings given hereunder
are given in  consideration  of the disbursement of the advances under the Loan,
and in consideration of the substantial  benefits  Indemnitor  expects to derive
from the making of the Loan.

15. No Waiver.  No failure on the part of Lender to pursue any remedy  hereunder
or under any other of the Loan Documents  shall  constitute a waiver on its part
of the right to  pursue  said  remedy  on the basis of the same or a  subsequent
breach. No extension, substitution, modification, amendment or renewal of any of
the Loan  Documents  shall  serve to waive the  provisions  hereby or  discharge
Indemnitor from any obligation  herein contained in whole or in part,  except to
the extent expressly provided by Lender in writing or as provided herein.

16. Obligations Independent; Waiver of Exoneration.

(1) Indemnitor  agrees that the obligations  hereunder are independent of and in
addition  to the  undertakings  of  Borrower  and WWG 401  pursuant  to the Loan
Documents,  any evidence of  indebtedness  issued in connection  therewith,  any
mortgage  or other  security  instrument  given to secure  the  same,  any other
indemnities  or  guarantees   given  in  connection   therewith  and  any  other
obligations of Indemnitor to Lender. A separate action may be brought to enforce
the provisions  hereof whether or not Borrower or WWG 401 is a party in any such
action.

(2) Indemnitor  waives any defense it may acquire by reason of Lender's election
of any remedy  against it or Borrower  or WWG 401,  or any of them,  even though
Indemnitor's right of subrogation may thereby by impaired or extinguished.

17.  Subrogation.  Notwithstanding  anything to the contrary  contained  herein,
until payment in full of the  Obligations,  Indemnitor  shall not have or assert
any  rights  it may  otherwise  have  at law or in  equity  (including  any  law
subrogating   Indemnitor  to  the  rights  of  Lender)  to  seek   contribution,
indemnification,  or any other form of  reimbursement  from Borrower or WWG 401,
any  other  indemnitor,  or any  other  Person  now or  hereafter  primarily  or
secondarily liable for any obligations of Borrower or WWG 401 to Lender, for any
payment or  disbursement  otherwise.  Indemnitor  waives the benefit of, and any
right to  participate  in, any  security  now or  hereafter  held by Lender from
Borrower or WWG 401.

18.  Multiple  Indemnitors.  If more than one  Person  signs this  Agreement  as
Indemnitor,  (a) the term  "Indemnitor"  shall  mean each such  Person,  (b) the
obligations of each Indemnitor shall be joint, several and independent,  and (c)
this  Agreement  shall be  construed  and  enforced  as though  each  Indemnitor
executed a separate  indemnity on the terms set forth in this Agreement (subject
to the  provisions  of Sections 10 and 11, and the  provisions of Section 9 that
specifically refer to Wellsford Indemnitor and Whitehall Indemnitor).

19.  Amendments,  Etc. No amendment or waiver of any provision of this Agreement
nor  consent to any  departure  by  Indemnitor  therefrom  shall in any event by
effective  unless the same shall be in  writing  and signed by Lender,  and then
such waiver or consent shall be effective only in the specific  instance and for
the specific purpose for which given.

20. Notices. Any and all notices hereunder shall be in writing and shall be made
and received in accordance with Section 11.1 of the Loan Agreement.

21. Monies. All references to monies herein, or the equivalent thereof, shall be
deemed to mean lawful monies of the United States of America.

22. Loan Agreement and Loan Documents.  Indemnitor acknowledges that it is fully
familiar with the terms,  provisions  and  conditions of the Loan  Agreement and
other Loan Documents and that its signature on this  Agreement  shall also serve
as its consent to and approval of the terms and provisions thereof.

23. Miscellaneous.

(1)  NOTWITHSTANDING  THE FACT THAT THIS AGREEMENT MAY BE EXECUTED AND DELIVERED
IN A  JURISDICTION  OTHER THAN THE STATE OF NEW YORK,  THE PARTIES  HERETO AGREE
THAT  THE LAWS OF THE  STATE  OF NEW  YORK  (WITHOUT  REGARD  TO  PRINCIPLES  OF
CONFLICTS  OF LAWS),  TOGETHER  WITH THE LAWS OF THE UNITED  STATES OF  AMERICA,
SHALL  GOVERN  THE RIGHTS AND  DUTIES OF THE  PARTIES  HERETO AND THE  VALIDITY,
CONSTRUCTION, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT.

(2) Time is of the essence hereof.

(3) If any term,  provision,  covenant or  condition  hereof or any  application
thereof should be held by a court of competent  jurisdiction to be invalid, void
or unenforceable,  all terms,  provisions,  covenants and conditions hereof, and
all applications thereof not held invalid,  void or unenforceable shall continue
in  full  force  and  effect  and  shall  in no way  be  affected,  impaired  or
invalidated thereby.

(4) The use of the words "herein", "hereof", "hereunder", and any other words of
similar  import  refer to this  Agreement  as a whole and not to any  particular
paragraph,   subparagraph  or  other   subdivision  of  this  Agreement   unless
specifically noted otherwise in this Agreement.

(5)  As  used  herein,  the  word  "include(s)"   means   "include(s),   without
limitation," and the word "including" means "including,  but not limited to." In
addition,  all references  herein to "expenses" or "costs and expenses" shall be
deemed to include all reasonable  attorneys' fees  (including  those incurred in
connection  with  any  appellate  proceedings),  paralegal  fees,  court  costs,
accountants'  fees,  and  all  costs  and  expenses  incidental  to  any  of the
foregoing, however arising or occurring.

(6) The title of this  Agreement  and the  headings  of the  paragraphs  of this
Agreement are for  convenience of reference only, and are not to be considered a
part hereof,  and shall not limit or expand or otherwise affect any of the terms
hereof.

(7) This  Agreement  creates  a  continuing  obligation  and the  obligation  of
Indemnitor  hereunder  shall be binding upon  Indemnitor  and its successors and
assigns and shall inure to the benefit of and be  enforceable  by Lender and its
successors and assigns.

(8) This Agreement may be executed in any number of counterparts,  each of which
shall be an original but all of which together  shall  constitute one Agreement.
This Agreement may also be executed and delivered by facsimile signature,  which
facsimile  signature  shall  for all  purposes  be and  constitute  an  original
signature.

(9) This  Agreement  shall  survive the repayment of the Loan and the release of
any or all of the Collateral and the WWG 401 Guaranty Collateral.

(10)  The  terms  and  provisions  of this  Agreement  and  all of  Indemnitor's
obligations  hereunder  shall not in any way be  limited  by the  limitation  of
liability  provisions  set forth in Section 12.1 of the Loan Agreement or in the
Joinder attached to the Loan Agreement.

(11)  INDEMNITOR AND LENDER HEREBY  KNOWINGLY,  VOLUNTARILY,  AND  INTENTIONALLY
WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY  LITIGATION  BASED  HEREON,
ARISING OUT OF,  UNDER OR IN  CONNECTION  WITH THIS  AGREEMENT OR ANY OTHER LOAN
DOCUMENTS  CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF
CONDUCT,  COURSE OF DEALINGS,  STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS
OF EITHER  PARTY OR ANY EXERCISE BY ANY PARTY OF THEIR  RESPECTIVE  RIGHTS UNDER
THE LOAN DOCUMENTS OR IN ANY WAY RELATING TO THE LOAN, THE WWG 401 GUARANTY, THE
PROPERTIES OR THE GATEWAY  TOWER  PROPERTY  (INCLUDING  ANY ACTION TO RESCIND OR
CANCEL THIS AGREEMENT,  AND ANY CLAIMS OR DEFENSES ASSERTING THAT THIS AGREEMENT
WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE);  THIS WAIVER BEING A
MATERIAL INDUCEMENT FOR LENDER TO ACCEPT THIS AGREEMENT.

     IN WITNESS  WHEREOF,  Indemnitor has duly executed this Agreement as of the
day and year first above written

<TABLE>
<CAPTION>

<S>                           <C>
Signed, sealed and            WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP V,
delivered in the              a Delaware limited partnership
presence of:
                              By:  WH  Advisors, L.L.C. V, a Delaware limited
                                   liability company, general partner

/s/ Robert I. Guthrie                     By:  /s/ Alan Kava
---------------------                          ---------------------
Printed Name: Robert I. Guthrie                Alan Kava
                                               Vice President

                                          [Printed Name and Title]

Signed, sealed and            WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP VI,
delivered in the              a Delaware limited partnership
presence of:
                              By:  WH  Advisors,  L.L.C. VI,  a Delaware  limited
                                   liability company, general partner

/s/ Robert I. Guthrie                     By:  /s/ Alan Kava
---------------------                          ---------------------
Printed Name: Robert I. Guthrie                Alan Kava
                                               Vice President

                                          [Printed Name and Title]

Signed, sealed and            WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP VII
delivered in the              a Delaware limited partnership
presence of:
                              By:  WH Advisors, L.L.C. VII, a Delaware limited
                                   liability company, general partner

/s/ Robert I. Guthrie                     By:  /s/ Alan Kava
---------------------                          ---------------------
Printed Name: Robert I. Guthrie                Alan Kava
                                               Vice President

                                          [Printed Name and Title]

Signed, sealed and            WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP VIII,
delivered in the              a Delaware limited partnership
presence of:

                              By:  WH Advisors, L.L.C. VIII, a Delaware limited
                                   liability company, general partner

/s/ Robert I. Guthrie                     By:  /s/ Alan Kava
---------------------                          ---------------------
Printed Name: Robert I. Guthrie                Alan Kava
                                               Vice President

                                          [Printed Name and Title]

Signed, sealed and            WHITEHALL STREET REAL ESTATE LIMITED  PARTNERSHIP XI,
delivered in the              a Delaware limited partnership
presence of:
                              By:  WH  Advisors, L.L.C. XI, a Delaware  limited
                                   liability company, general partner

/s/ Robert I. Guthrie                     By:  /s/ Alan Kava
---------------------                          ---------------------
Printed Name: Robert I. Guthrie                Alan Kava
                                               Vice President

                                          [Printed Name and Title]

Signed, sealed and            WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP XII,
delivered in the              a Delaware limited partnership
presence of:

                              By:  WH Advisors,  L.L.C. XII,  a Delaware  limited
                                   liability company, general partner

/s/ Robert I. Guthrie                     By:  /s/ Alan Kava
---------------------                          ---------------------
Printed Name: Robert I. Guthrie                Alan Kava
                                               Vice President

                                          [Printed Name and Title]

Signed, sealed and            WELLSFORD REAL PROPERTIES, INC., a Maryland corporation
delivered in the
presence of:

/s/ Dennis M. Sughrue                     By:  /s/ Edward Lowenthal
---------------------                          ---------------------
Printed Name: Dennis M. Sughrue                Edward Lowenthal
                                               President

                                          [Printed Name and Title]

</TABLE>

                                 ACKNOWLEDGMENT

STATE OF __________________         )
                                            ) ss:
COUNTY OF ________________ )

         The foregoing  instrument was acknowledged  before me this _____ day of
June,     2001,     by     ____________________________________________,      as
___________________________  of  WH  Advisors,  L.L.C.  V,  a  Delaware  limited
liability  company,  the general partner of Whitehall Street Real Estate Limited
Partnership  V, a  Delaware  limited  partnership,  on  behalf  of said  limited
partnership. He/She is personally known to me or has produced a driver's license
as identification.

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

                                               ---------------------------------
                                               Printed Name of Notary Public

My commission expires: _________________       (Seal)

<PAGE>

                                 ACKNOWLEDGMENT

STATE OF __________________         )
                                            ) ss:
COUNTY OF ________________ )

         The foregoing  instrument was acknowledged  before me this _____ day of
June,     2001,     by     ____________________________________________,      as
___________________________  of WH  Advisors,  L.L.C.  VI,  a  Delaware  limited
liability  company,  the general partner of Whitehall Street Real Estate Limited
Partnership  VI, a  Delaware  limited  partnership,  on behalf  of said  limited
partnership. He/She is personally known to me or has produced a driver's license
as identification.

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

                                               ---------------------------------
                                               Printed Name of Notary Public

My commission expires: _________________       (Seal)

<PAGE>

                                 ACKNOWLEDGMENT

STATE OF __________________         )
                                            ) ss:
COUNTY OF ________________ )

         The foregoing  instrument was acknowledged  before me this _____ day of
June,     2001,     by     ____________________________________________,      as
___________________________  of WH  Advisors,  L.L.C.  VII, a  Delaware  limited
liability  company,  the general partner of Whitehall Street Real Estate Limited
Partnership  VII,  a Delaware  limited  partnership,  on behalf of said  limited
partnership. He/She is personally known to me or has produced a driver's license
as identification.

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

                                               ---------------------------------
                                               Printed Name of Notary Public

My commission expires: _________________       (Seal)

<PAGE>

                                 ACKNOWLEDGMENT

STATE OF __________________         )
                                            ) ss:
COUNTY OF ________________ )

         The foregoing  instrument was acknowledged  before me this _____ day of
June,     2001,     by     ____________________________________________,      as
___________________________  of WH Advisors,  L.L.C.  VIII,  a Delaware  limited
liability  company,  the general partner of Whitehall Street Real Estate Limited
Partnership  VIII,  a Delaware  limited  partnership,  on behalf of said limited
partnership. He/She is personally known to me or has produced a driver's license
as identification.

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

                                               ---------------------------------
                                               Printed Name of Notary Public

My commission expires: _________________       (Seal)

<PAGE>

                                 ACKNOWLEDGMENT

STATE OF __________________         )
                                            ) ss:
COUNTY OF ________________ )

         The foregoing  instrument was acknowledged  before me this _____ day of
June,     2001,     by     ____________________________________________,      as
___________________________  of WH  Advisors,  L.L.C.  XI,  a  Delaware  limited
liability  company,  the general partner of Whitehall Street Real Estate Limited
Partnership  XI, a  Delaware  limited  partnership,  on behalf  of said  limited
partnership. He/She is personally known to me or has produced a driver's license
as identification.

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

                                               ---------------------------------
                                               Printed Name of Notary Public

My commission expires: _________________       (Seal)

<PAGE>

                                 ACKNOWLEDGMENT

STATE OF __________________         )
                                            ) ss:
COUNTY OF ________________ )

         The foregoing  instrument was acknowledged  before me this _____ day of
June,     2001,     by     ____________________________________________,      as
___________________________  of WH  Advisors,  L.L.C.  XII, a  Delaware  limited
liability  company,  the general partner of Whitehall Street Real Estate Limited
Partnership  XII,  a Delaware  limited  partnership,  on behalf of said  limited
partnership. He/She is personally known to me or has produced a driver's license
as identification.

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

                                               ---------------------------------
                                               Printed Name of Notary Public

My commission expires: _________________       (Seal)

<PAGE>

                                 ACKNOWLEDGMENT

STATE OF __________________         )
                                            ) ss:
COUNTY OF ________________ )

         The foregoing  instrument was acknowledged  before me this _____ day of
June,     2001,     by     ____________________________________________,      as
___________________________ of Wellsford Commercial Properties, Inc., a Maryland
corporation, on behalf of said corporation.  He/She is personally known to me or
has produced a driver's license as identification.

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

                                               ---------------------------------
                                               Printed Name of Notary Public

My commission expires: _________________       (Seal)INDEMNITY REGARDING GUARANTY OBLIGATIONS

This Indemnity Regarding Guaranty  Obligations  ("INDEMNITY") is made as of June
25, 2001 by and between WELLSFORD/WHITEHALL HOLDINGS, L.L.C., a Delaware limited
liability  company  ("BORROWER"),  and WWG 401 NORTH  WASHINGTON LLC, a Delaware
limited liability company (the "GATEWAY OWNER"), with reference to the following
recitals of fact:

                                    RECITALS

1. General Electric Capital Corporation,  a New York corporation ("LENDER"), has
agreed  to  make a loan  of up to  $352,600,000  (the  "LOAN")  to  Borrower  in
accordance  with that  certain Loan  Agreement  dated as of the date hereof (the
"LOAN  AGREEMENT")  by and  between  Lender  and  Borrower.  The  Loan  will  be
guarantied  by  Gateway  Owner  pursuant  to a  Guaranty  of even date  herewith
executed by Gateway  Owner in favor of Lender (the  "GUARANTY"),  subject to the
terms, conditions and limitations set forth therein. Gateway Owner's obligations
under the Guaranty will be secured by, among other things, a deed of trust which
will  encumber,  and certain other  collateral  documents  which relate to, that
certain real property owned by the Gateway Owner commonly referred to as Gateway
Tower, which is located at 401 North Washington Street, Rockville, Maryland (the
"GATEWAY  PROPERTY").  A portion of the Loan  proceeds will be used to refinance
certain  indebtedness  which is secured by the Gateway Property,  and to pay for
certain future capital expenditures,  tenant improvement costs and other leasing
costs incurred in connection with the Gateway Property.

2. The  Gateway  Owner  has  agreed  to  guaranty  the Loan  and to  secure  its
obligations  under the Guaranty with a lien on the Gateway  Property and related
personalty in consideration of the substantial  benefits which the Gateway Owner
will derive from the Loan. In  consideration of the benefits derived by Borrower
from the Gateway  Owner's  agreement  to provide the  Guaranty and to secure its
obligations under the Guaranty with a lien on the Gateway Property, the Borrower
has agreed to provide certain  indemnifications  to the Gateway Owner associated
with the Loan.

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

                                    AGREEMENT

1. Borrower agrees to indemnify, defend and hold the Gateway Owner harmless from
and against any and all amounts  (whether in the form of cash,  real or personal
property or proceeds  therefrom,  or otherwise) received by Lender in respect of
the Guaranty or its lien on the Gateway  Property (or any other collateral given
by the  Gateway  Owner to secure the  Guaranty  or the Loan) to the extent  such
amounts  exceed  the sum of the  Loan  funds  disbursed  to repay  the  existing
indebtedness  secured by the Gateway  Property plus the Loan funds  disbursed to
pay for capital  expenditures,  tenant improvement costs and other leasing costs
incurred in connection with the Gateway Property.

2. In the event of any dispute under this  Indemnity  which results in a lawsuit
by any party, the losing party shall pay the reasonable legal costs of the other
party.

3. If any provision or part of any provision this Indemnity shall for any reason
be held  invalid,  illegal or  unenforceable  in any respect,  such  invalidity,
illegality  or  unenforceability  shall not affect any other  provisions  or the
remaining part of any effective provisions of this Indemnity, and this Indemnity
shall be construed as if such  invalid,  illegal or  unenforceable  provision or
part  thereof  had never been  contained  herein,  but only to the extent of its
invalidity, illegality or unenforceabililty.

4. This  Indemnity  shall  inure to the  benefit  of and be  enforceable  by the
Gateway  Owner and its  successors  and  assigns,  and shall be binding upon and
enforceable against the Borrower and the Borrower's successors and assigns.

5. All present and future  obligations  of  Borrower  to Gateway  Owner  arising
hereunder  shall at all times be subject and  subordinate in all respects to all
present and future  obligations  of Borrower to Lender,  and Gateway Owner shall
have no  right  to seek  recovery  against  Borrower  or any of its  assets  for
obligations arising hereunder until the full, cash repayment of the Loan and all
other obligations of Borrower to Lender. Lender shall be an express, third party
beneficiary of this paragraph, which shall not be amended, modified,  terminated
or waived without Lender's prior, written consent.

6. This  Indemnity  and the rights and  obligations  of the Borrower and Gateway
Owner  hereunder  shall  in all  respects  be  governed  by,  and  construed  in
accordance  with,  the laws of the  State of New  York,  without  regard  to the
conflicts of laws rules of that State.

7. This Indemnity may be executed in any number of  counterparts,  each of which
shall  be  considered  an  original  and all of  which,  taken  together,  shall
constitute one and the same instrument.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS  WHEREOF,  Borrower and Gateway Owner have executed this Indemnity as
of the date first written above.

BORROWER:

WELLSFORD/WHITEHALL HOLDINGS, L.L.C., a Delaware limited
 liability company

  By:  Wellsford/Whitehall Properties II, L.L.C., a Delaware
       limited liability company, its managing member

       By:   Wellsford/Whitehall Group, L.L.C., a Delaware
             limited liability company, its sole member

             By:   WP Commercial, L.L.C., a Delaware limited
                   liability company, its manager

                        By:      /s/ Alan Kava
                                 -------------
                        Name:   Alan Kava
                        Title:  Authorized Signatory

GATEWAY OWNER:

WWG 401 NORTH WASHINGTON LLC, a Delaware limited liability
company

By:  Wellsford/Whitehall Holdings, L.L.C., a Delaware limited
     liability company

     By:   Wellsford/Whitehall Properties II, L.L.C., a

           Delaware limited liability company, its managing
           member

           By:  Wellsford/Whitehall Group, L.L.C., a Delaware
                limited liability company, its sole member

                By:   WP Commercial, L.L.C., a Delaware
                      limited liability company, its manager

                        By:      /s/ Alan Kava
                                 -------------
                        Name:   Alan Kava
                        Title:  Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]