TRUST FOR GLEASON CORPORATION
               EXECUTIVE COMPENSATION ARRANGEMENTS
                                
     This Agreement made this 28th day of July, 1998 by and 
between Gleason Corporation (Company) and M&T Bank (Trustee);

     WHEREAS, Company has adopted certain executive agreements
and nonqualified deferred compensation plans listed in Appendix A
(collectively referred to as the "Plan").

     WHEREAS, Company has incurred or expects to incur liability
under the terms of such Plan with respect to the individuals
participating in such Plan.

     WHEREAS, Company wishes to establish a trust (hereinafter
called "Trust") and to contribute to the Trust assets that shall
be held therein, subject to the claims of Company's creditors in
the event of Company's Insolvency, as herein defined, until paid
to Plan participants and their beneficiaries in such manner and
at such times as specified in the Plan;

     WHEREAS, it is the intention of the parties that this Trust
shall constitute an unfunded arrangement and shall not affect the
status of the Plan as an unfunded plan maintained for the purpose
of providing deferred compensation for a select group of
management or highly compensated employees for purposes of Title
I of the Employee Retirement Income Security Act of 1974;

     WHEREAS, it is the intention of Company, in its sole
discretion, to make contributions to the Trust to provide itself
with a source of funds to assist it in the meeting of its
liabilities under the Plan;

     NOW, THEREFORE, the parties do hereby establish the Trust
and agree that the Trust shall be comprised, held and disposed of as follows:

Section 1.  Establishment of Trust.

     (a)  The Trust shall become irrevocable upon approval by the
Board of Directors.

     (b)  Company, in its sole discretion, may at any time, or
from time to time, make deposits of cash or other property in
trust with Trustee to augment the principal to be held,
administered and disposed of by Trustee as provided in this Trust
Agreement.  Neither Trustee nor any Plan participant or
beneficiary shall have any right to compel such additional deposits.

     (c)  The Trust is intended to be a grantor trust, of which
Company is the grantor, within the meaning of subpart E, part I,
subchapter J, chapter 1, subtitle A of the Internal Revenue Code
of 1986, as amended, and shall be construed accordingly.

     (d)  The principal of the Trust, and any earnings thereon
shall be held separate and apart from other funds of Company and
shall be used exclusively for the uses and purposes of Plan
participants and general creditors as herein set forth.  Plan
participants and their beneficiaries shall have no preferred
claim on, or any beneficial ownership interest in, any assets of
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the Trust.  Any rights created under the Plan and this Trust
Agreement shall be mere unsecured contractual rights of Plan
participants and their beneficiaries against Company.  Any assets
held by the Trust will be subject to the claims of Company's
general creditors under federal and state law in the event of
Insolvency, as defined in Section 3(a) herein.

Section 2.  Payments to Plan Participants and Their Beneficiaries.

     (a)  Company shall deliver to Trustee a schedule (the
"Payment Schedule") that indicates the amounts payable in respect
of each Plan participant (and his or her beneficiaries), that
provides a formula or other instructions acceptable to Trustee
for determining the amounts so payable, the form in which such
amount is to be paid (as provided for or available under the
Plan), and the time of commencement for payment of such amounts.
Except as otherwise provided herein, Trustee shall make payments
to the Plan participants and their beneficiaries in accordance
with such Payment Schedule.  The Trustee shall make provision for
the reporting and withholding of any federal, state or local
taxes that may be required to be withheld with respect to the
payment of benefits pursuant to the terms of the Plan and shall
pay amounts withheld to the appropriate taxing authorities or
determine that such amounts have been reported, withheld and paid
by Company.

     (b)  The entitlement of a Plan participant or his or her
beneficiaries to benefits under the Plan shall be determined by
Company or such party as it shall designate under the Plan, and
any claim for such benefits shall be considered and reviewed
under the procedures set out in the Plan.

     (c)  Company may make payment of benefits directly to Plan
participants or their beneficiaries as they become due under the
terms of the Plan.  Company shall notify Trustee of its decision
to make payment of benefits directly prior to the time amounts
are payable to participants or their beneficiaries.  In addition,
if the principal of the Trust, and any earnings thereon, are not
sufficient to make payments of benefits in accordance with the
terms of the Plan, Company shall make the balance of each such
payment as it falls due.  Trustee shall notify Company where
principal and earnings are not sufficient.

Section 3.  Trustee Responsibility Regarding Payments to Trust
Beneficiary When Company Is Insolvent.

     (a)  Trustee shall cease payment of benefits to Plan
participants and their beneficiaries if the Company is Insolvent.
Company shall be considered "Insolvent" for purposes of this
Trust Agreement if (i) Company is unable to pay its debts as they
become due, or (ii) Company is subject to a pending proceeding as
a debtor under the United States Bankruptcy Code.

     (b)  At all times during the continuance of this Trust, as
provided in Section 1(d) hereof, the principal and income of the
Trust shall be subject to claims of general creditors of Company
under federal and state law as set forth below.

          (1)  The Board of Directors and the Chief Executive
     Officer of Company shall have the duty to inform Trustee in
     writing of Company's Insolvency.  If a person claiming to be
     a creditor of Company alleges in writing to Trustee that
     Company has become Insolvent, Trustee shall determine
     whether Company is Insolvent and, pending such
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     determination, Trustee shall discontinue payment of benefits
     to Plan participants or their beneficiaries.
     
          (2)  Unless Trustee has actual knowledge of Company's
     Insolvency, or has received notice from Company or a person
     claiming to be a creditor alleging that Company is
     Insolvent, Trustee shall have no duty to inquire whether
     Company is Insolvent.  Trustee may in all events rely on
     such evidence concerning Company's solvency as may be
     furnished to Trustee and that provides Trustee with a
     reasonable basis for making a determination concerning
     Company's solvency.
     
          (3)  If at any time Trustee has determined that Company
     is Insolvent, Trustee shall discontinue payments to Plan
     participants or their beneficiaries and shall hold the
     assets of the Trust for the benefit of Company's general
     creditors.  Nothing in this Trust Agreement shall in any way
     diminish any rights of Plan participants or their
     beneficiaries to pursue their rights as general creditors of
     Company with respect to benefits due under the Plan or
     otherwise.
     
          (4)  Trustee shall resume the payment of benefits to
     Plan participants or their beneficiaries in accordance with
     Section 2 of this Trust Agreement only after Trustee has
     determined that Company is not Insolvent (or is no longer Insolvent).
     
     (c)  Provided that there are sufficient assets, if Trustee
discontinues the payment of benefits from the Trust pursuant to
Section 3(b) hereof and subsequently resumes such payments, the
first payment following such discontinuance shall include the
aggregate amount of all payments due to Plan participants or
their beneficiaries under the terms of the Plan for the period of
such discontinuance, less the aggregate amount of any payments
made to Plan participants or their beneficiaries by Company in
lieu of the payments provided for hereunder during any such
period of discontinuance.

Section 4.  Payments to Company.

     Except as provided in Section 3 hereof, after the Trust has
become irrevocable, Company shall have no right or power to
direct Trustee to return to Company or to divert to others any of
the Trust assets before all payment of benefits have been made to
Plan participants and their beneficiaries pursuant to the terms
of the Plan.

Section 5.  Investment Authority.

     (a)  Trustee may invest in securities (including stock or
rights to acquire stock) or obligations issued by Company.  All
rights associated with assets of the Trust shall be exercised by
Trustee or the person designated by Trustee, and shall in no
event be exercisable by or rest with Plan participants, except
that voting rights with respect to Trust assets will be exercised
by Company, and except that dividend rights with respect to Trust
assets will rest with Company.

     (b)  Company shall have the right anytime, and from time to
time in its sole discretion, to substitute assets of equal fair
market value for any asset held by the Trust.  This right is
exercisable by Company in a nonfiduciary capacity without the
approval or consent of any person in a fiduciary capacity.
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Section 6.  Disposition of Income.
     
     During the term of this Trust, all income received by the
Trust, net of expenses and taxes, shall be accumulated and reinvested.

Section 7.  Accounting by Trustee.
     
     Trustee shall keep accurate and detailed records of all
investments, receipts, disbursements, and all other transactions
required to be made, including such specific records as shall be
agreed upon in writing between Company and Trustee.  Within 60
(sixty) days following the close of each calendar year and within
60 (sixty) days after the removal or resignation of Trustee,
Trustee shall deliver to Company a written account of its
administration of the Trust during such year or during the period
from the close of the last preceding year to the date of such
removal or resignation, setting forth all investments, receipts,
disbursements and other transactions effected by it, including a
description of all securities and investments purchased and sold
with the cost or net proceeds of such purchases or sales (accrued
interest paid or receivable being shown separately), and showing
all cash, securities and other property held in the Trust at the
end of such year or as of the date of such removal or
resignation, as the case may be.

Section 8.  Responsibility of Trustee.

     (a)  Trustee shall act with the care, skill, prudence and
diligence under the circumstances then prevailing that a prudent
person acting in like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and
with like aims, provided, however, that Trustee shall incur no
liability to any person for any action taken pursuant to a
direction, request or approval given by Company which is
contemplated by, and in conformity with, the terms of the Plan or
this Trust and is given in writing by Company.  In the event of a
dispute between Company and a party, Trustee may apply to a court
of competent jurisdiction to resolve the dispute.

     (b)  If Trustee undertakes or defends any litigation arising
in connection with this Trust, Company agrees to indemnify
Trustee against Trustee's costs, expenses and liabilities
(including without limitation, attorneys' fees and expenses)
relating thereto and to be primarily liable for such payments.
If Company does not pay such costs, expenses and liabilities in a
reasonably timely manner, Trustee may obtain payment from the Trust.

     (c)  Trustee may consult with legal counsel (who may also be
counsel for Company generally) with respect to any of its duties
or obligations hereunder.

     (d)  Trustee may hire agents, accountants, actuaries,
investment advisors, financial, consultants or other
professionals to assist it in performing any of its duties or
obligations hereunder.

     (e)  Trustee shall have, without exclusion, all powers
conferred on Trustees by applicable law, unless expressly
provided otherwise herein, provided, however, that if an
insurance policy is held as an asset of the Trust, Trustee shall
have no power to name a beneficiary of the policy other than the
Trust, to assign the policy (as distinct from conversion of the
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policy to a different form) other than to a successor Trustee, or
to loan to any person the proceeds of any borrowing against such
policy.

     (f)  Notwithstanding any powers granted to Trustee pursuant
to this Trust Agreement or to applicable law, Trustee shall not
have any power that could give this Trust the objective of
carrying on a business and dividing the gains therefrom, within
the meaning of section 301.7701-2 of the Procedure and
Administrative Regulations promulgated pursuant to the Internal
Revenue Code.

Section 9.  Compensation and Expenses of Trustee.

     Company shall pay all administrative and Trustee's fees and
expenses.  If not so paid, the fees and expenses shall be paid
from the Trust.

Section 10.  Resignation and Removal of Trustee.

     (a)  Trustee may resign at any time by written notice to
Company, which shall be effective 90 days after receipt of such
notice unless Company and Trustee agree otherwise.

     (b)  Trustee may be removed by Company on 30 days notice or
upon shorter notice accepted by Trustee.

     (c)  Upon a Change of Control, as defined herein, Trustee
may not be removed by Company for 10 years.

     (d)  Upon resignation or removal of Trustee and appointment
of a successor Trustee, all assets shall subsequently be
transferred to the successor Trustee.  The transfer shall be
completed within 90 days after receipt of notice of resignation,
removal or transfer, unless Company extends the time limit.

     (e)  If Trustee resigns or is removed, a successor shall be
appointed, in accordance with Section 11 hereof, by the effective
date of resignation or removal under paragraphs (a) or (b) of
this section.  If no such appointment has been made, Trustee may
apply to a court of competent jurisdiction for appointment of a
successor or for instructions.  All expenses of Trustee in
connection with the proceeding shall be allowed as administrative
expenses of the Trust.

Section 11.  Appointment of Successor.

     If Trustee resigns (or is removed) in accordance with
Section 10 (a) or (b) hereof, Company may appoint any third
party, such as a bank trust department or other party that may be
granted corporate trustee powers under state law, as a successor
to replace Trustee upon resignation or removal.  The appointment
shall be effective when accepted in writing by the new Trustee,
who shall have all of the rights and powers of the former
Trustee, including ownership rights in the Trust assets.  The
former Trustee shall execute any instrument necessary or
reasonably requested by Company or the successor Trustee to
evidence the transfer.

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Section 12.  Amendment or Termination.

     (a)  This Trust Agreement may be amended by a written
instrument executed by Trustee and Company.  Notwithstanding the
foregoing, no such amendment shall conflict with the terms of the
Plan or shall make the Trust revocable.

     (b)  The Trust shall not terminate until the date on which
Plan participants and their beneficiaries are no longer entitled
to benefits pursuant to the terms of the Plan.  Upon termination
of the Trust any assets remaining in the Trust shall be returned
to Company.

     (c)  Upon written approval of participants or beneficiaries
entitled to payment of benefits pursuant to the terms of the
Plan, Company may terminate this Trust prior to the time all
benefit payments under the Plan have been made.  All assets in
the Trust at termination shall be returned to Company.

     (d)  Sections 1(d), 4, 6, 7, 10, 9(c) and 12(b) of this
Trust Agreement may not be amended by Company for 10 years
following a Change in Control, as defined herein.

Section 13.  Miscellaneous.

     (a)  Any provision of this Trust Agreement prohibited by law
shall be ineffective to the extent of any such prohibition,
without invalidating the remaining provisions hereof.

     (b)  Benefits payable to Plan participants and their
beneficiaries under this Trust Agreement may not be anticipated,
assigned (either at law or in equity), alienated, pledged,
encumbered or subjected to attachment, garnishment, levy,
execution or other legal or equitable process.

     (c)  This Trust Agreement shall be governed by and construed
in accordance with the laws of New York.

     (d)  For purposes of this Trust, Change of Control shall
mean:  a change of control of the Corporation of a nature that
would be required to be reported in response to Item 5 (f) of
Schedule 14A of Regulation 14A or to Item 1 of Form 8-K
promulgated under the Securities Exchange Act of 1934, as
amended, provided that, without limitation, a Change of Control
shall be deemed to have occurred if (i) any "person" (as such
term is used in Section 13 (d) and 14 (d)(2) of such Act) is or
becomes the beneficial owner, directly or indirectly, of
securities of the Corporation representing 30% or more of the
combined voting power of the Corporation's then outstanding
securities; or (ii) during any period of twenty-four (24)
consecutive months, individuals who at the beginning of such
period constitute the Board of Directors of the Corporation cease
for any reason to constitute at least a majority thereof unless
the election, or the nomination for election by the Corporation's
shareholders, of each new director was approved by a vote of at
least two-thirds of the directors then still in office who were
directors at the beginning of period.

Section 14.  Effective Date..

     The effective date of this Trust Agreement shall be
July 28, 1998.

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                                   GLEASON CORPORATION

Dated: July 28, 1998
By: John B. Kodweis
    John B. Kodweis


Its: Vice President Administration and Human Resources



                                   M&T BANK

Dated: August 7, 1998
By: Francis F. Ostrom
    Francis F. Ostrom

Its: Vice-President

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                           APPENDIX A
                                


     Gleason Corporation Supplemental Retirement Plan



     Gleason Corporation Executive Agreements