Document:

Prepared by MerrillDirect

EXHIBIT 10.33

STOCK PLEDGE AGREEMENT

THIS STOCK PLEDGE AGREEMENT, dated as of
December 27, 2000 (herein as amended or otherwise modified, the "Agreement"), by MECHANICAL TECHNOLOGY INCORPORATED, a New
York corporation (herein, together with its successors and assigns, the "Pledgor" or the
"Borrower"),
with FIRST ALBANY COMPANIES INC.,
a corporation organized under the laws of the State of New York (herein,
together with its successors and assigns, the "Lender"). Terms
used in this Agreement and not otherwise defined shall have the meanings
assigned to them in the Put Note referred to below.

On the
date hereof, for value received, the Pledgor has issued to the Lender a
promissory note in the original principal amount of $945,000 (the "Put Note"). To
induce the Lender to extend credit to the Pledgor under the Put Note, and for
other good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged, the Pledgor has agreed to pledge to the Lender, and grant
to the Lender a security interest in, 200,000 shares of common stock of Plug
Power Inc., a Delaware corporation (together with its successors and assigns,
the "Company")
(the "Pledged
Shares") and the other Pledged Collateral referred to below
to secure all of its obligations under the Put Note. Accordingly, the parties
hereto hereby agree as follows:

1. The Pledgor hereby pledges to the
Lender, and grants to the Lender a security interest in the Pledged Shares, the
certificates representing the Pledged Shares, and all dividends, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the
Pledged Shares, including, without limitation, all proceeds, products,
offspring, accessions, rents, profits, income, benefits, substitutions and
replacements of all of the foregoing (collectively, the "Pledged Collateral"):

2. Security for Secured Obligations. This
Agreement secures the payment of (i) all obligations of the Borrower now
or hereafter existing under the Put Note, whether for principal, interest,
fees, expenses or otherwise and (ii) all obligations of the Pledgor now or
hereafter existing under this Agreement (all such obligations of the Borrower
referred to in this Section 2 being the "Secured Obligations"). Without
limiting the generality of the foregoing, this Agreement secures the payment of
all amounts which constitute part of the Secured Obligations and would be owed
by the Borrower but for the fact that they are unenforceable or not allowable due
to the existence of a bankruptcy, reorganization or similar proceeding
involving the Borrower.

3. Delivery of Pledged Collateral; Removal of Legends; Use of
Securities Account. (a) All certificates or instruments
representing or evidencing the Pledged Collateral shall be delivered to and
held by or on behalf of the Lender pursuant hereto and shall be in suitable
form for transfer by delivery, or shall be accompanied by duly executed
instruments of transfer or assignment in blank, all in form and substance
satisfactory to the Lender. The Lender shall have the right, in its discretion,
at any time during the continuance of an Event of Default and without notice to
the Pledgor, to transfer to or to register in the name of the Lender or any of
its nominees any or all of the Pledged Collateral, subject only to the
revocable rights specified in Section 6(a). In addition, the Lender shall have
the right at any time to exchange certificates or instruments representing or
evidencing Pledged Collateral for certificates or instruments of smaller or
larger denominations.

(b) If
any Pledged Collateral is subject to any contractual restriction on transfer
arising under any agreement to which the Pledgor is a party with the issuer,
other shareholders and/or any underwriters, and any certificate or certificates
for such Pledged Collateral contain a legend which makes reference to such
restrictions, the Pledgor will, from time to time and as promptly as
circumstances permit, take all such actions as are within its power to request
and obtain the removal of such legend from certificates for the maximum number
of shares as to which it is entitled to have such legend removed.

(c) If
after the date hereof any or all of the Pledged Collateral may be held in book
entry form and the Pledgor desires that such Pledged Collateral be held in such
form in an account which the Pledgor has with a broker which is a member firm
of the National Association of Securities Dealers, then the Lender will
cooperate with the Pledgor in transferring such Pledged Collateral to such
account, provided
that there is in place an "account control agreement" reasonably
satisfactory to the Lender which is sufficient to perfect its security interest
in the Pledged Collateral held in such account and all proceeds thereof.

4. Representations and Warranties. The
Pledgor represents and warrants that:

(a) The
Pledged Shares have been duly authorized and validly issued and are fully paid
and non-assessable.

(b) The
Pledgor (i) is the legal and beneficial owner of the Pledged Collateral free
and clear of any lien, security interest, option or other charge or encumbrance
except for the security interest created by this Agreement and (ii) has legally
and beneficially owned the Pledge Shares since June 27, 1997.

(c) The pledge
of the Pledged Shares pursuant to this Agreement creates a valid and perfected
first priority security interest in the Pledged Collateral, securing the
payment of the Secured Obligations.

(d) No
consent of any other person or entity and no authorization, approval, or other
action by, and no notice to or filing with, any governmental authority or
regulatory body is required (i) for the pledge by the Pledgor of the Pledged
Collateral pursuant to this Agreement or for the execution, delivery or performance
of this Agreement by the Pledgor, (ii) for the perfection or maintenance
of the security interest created hereby (including the first priority nature of
such security interest) or (iii) for the exercise by the Lender of the voting
or other rights provided for in this Agreement or the remedies in respect of
the Pledged Collateral pursuant to this Agreement (except as may be required in
connection with any disposition of any portion of the Pledged Collateral by
laws affecting the offering and sale of securities generally).

(e) The
Pledged Shares constitute as of such date the percentage of the issued and
outstanding shares of stock of the issuer thereof indicated on Schedule I.

(f) There
are no conditions precedent to the effectiveness of this Agreement that have
not been satisfied or waived.

(g) The
Pledgor has, independently and without reliance upon the Lender and based on
such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement.

5. Further Assurances. (a) The Pledgor
agrees that at any time and from time to time, at the expense of the Pledgor,
the Pledgor will promptly execute and deliver all further instruments and
documents, and take all further action, that may be necessary or desirable, or
that the Lender may reasonably request, in order to perfect and protect any
security interest granted or purported to be granted hereby or to enable the
Lender to exercise and enforce its rights and remedies hereunder with respect
to any Pledged Collateral.

(b) If
the Pledgor registers shares of common stock of the Company with the intention
of retaining ownership, the Pledgor agrees to register or cause to be
registered that portion of the Pledged Collateral subject to SEC Rule 144 as
soon as it is feasible.

6. Voting Rights; Dividends; etc. (a) So
long as no Event of Default shall have occurred and be continuing:

(i) The Pledgor shall be entitled to exercise or
refrain from exercising any and all voting and other consensual rights
pertaining to the Pledged Collateral or any part thereof for any purpose not
inconsistent with the terms of this Agreement.

(ii) The Pledgor shall be entitled to receive and
retain any and all dividends and distributions paid in respect of the Pledged
Collateral, provided,
however, that any and all

(A) dividends and distributions paid or payable other
than in cash in respect of, and instruments and other property received,
receivable or otherwise distributed in respect of, or in exchange for, Pledged
Collateral, and

(B) dividends and other distributions paid or payable
in cash in respect of any Pledged Collateral in connection with a partial or
total liquidation or dissolution or in connection with a reduction of capital,
capital surplus or paid-in-surplus, 

shall be, and shall be forthwith delivered to the
Lender to hold as, Pledged Collateral and shall, if received by the Pledgor, be
received in trust for the benefit of the Lender, be segregated from the other
property or funds of the Pledgor, and be forthwith delivered to the Lender as
Pledged Collateral in the same form as so received (with any necessary
endorsement or assignment).

(iii) The Lender shall execute and deliver (or cause
to be delivered) to the Pledgor all such proxies and other instruments as the
Pledgor may reasonably request for the purposes of enabling the Pledgor to
receive dividends or distributions that it is authorized to receive and retain
pursuant to paragraph (ii) above.

(b) Upon
the occurrence and during the continuance of an Event of Default:

(i) All rights of the Pledgor (x) to exercise or
refrain from exercising the voting and other consensual rights which it would
otherwise be entitled to exercise pursuant to Section 6(a)(i) shall, upon
notice to the Pledgor by the Lender, cease and (y) to receive the
dividends and distributions which it would otherwise be authorized to receive
and retain pursuant to Section 6(a)(ii) shall automatically cease, and all such
rights shall thereupon become vested in the Lender who shall thereupon have the
sole right to exercise or refrain from exercising such voting and other
consensual rights and to receive and hold as Pledged Collateral such dividends
and distributions.

(ii) All dividends and distributions which are
received by the Pledgor contrary to the provisions of paragraph (i) of this
Section 6(b) shall be received in trust for the benefit of the Lender, shall be
segregated from other funds of the Pledgor and shall be forthwith paid over to
the Lender as Pledged Collateral in the same form as so received (with any
necessary endorsement).

(iii) The Lender, in its sole and absolute discretion,
shall either (x) apply in any manner any Pledged Collateral consisting of cash
received by or on behalf of the Lender under this Section 6(b) to the payment
of principal of and interest on the Put Note and other obligations hereunder
and under the Put Note or (y) deposit and hold such Pledged Collateral
consisting of cash in the Debt Service Reserve Account as additional Pledged
Collateral.

7. Transfers and Other Liens. The Pledgor
agrees that it will not (i) sell, assign (by operation of law or
otherwise) or otherwise dispose of, or grant any option with respect to, any of
the Pledged Collateral and any such sale, assignment or disposition will be
null and void; or (ii) create or permit to exist any lien, security interest,
option or other charge or encumbrance upon or with respect to any of the
Pledged Collateral, except
for the security interest under this Agreement.

8. Lender Appointed Attorney-in-Fact. The
Pledgor hereby appoints the Lender the Pledgor's attorney-in-fact, with full
authority in the place and stead of the Pledgor and in the name of the Pledgor
or otherwise, from time to time in the Lender's discretion to take any action
and to execute any instrument which the Lender may deem necessary or advisable
to accomplish the purposes of this Agreement (subject to the rights of the
Pledgor under Section 6), including, without limitation, to receive,
indorse and collect all instruments made payable to the Pledgor representing
any dividend, or other distribution in respect of the Pledged Collateral or any
part thereof and to give full discharge for the same, which appointment as
attorney-in-fact is irrevocable and coupled with an interest.

9. Lender May Perform. If the Pledgor fails
to perform any agreement contained herein, the Lender may itself perform, or
cause performance of, such agreement, and the expenses of the Lender incurred
in connection therewith shall be payable by the Pledgor under Section 14.

10. The Lender's Duties. The powers
conferred on the Lender hereunder are solely to protect its interest in the
Pledged Collateral and shall not impose any duty upon it to exercise any such
powers. Except for the safe custody of any Pledged Collateral in its possession
and the accounting for moneys actually received by it hereunder, the Lender
shall have no duty as to any Pledged Collateral, as to ascertaining or taking
action with respect to calls, conversions, exchanges, maturities, tenders or
other matters relative to any Pledged Collateral, whether or not the Lender has
or is deemed to have knowledge of such matters, or as to the taking of any
necessary steps to preserve rights against any parties or any other rights
pertaining to any Pledged Collateral. The Lender shall be deemed to have
exercised reasonable care in the custody and preservation of any Pledged
Collateral in its possession if such Pledged Collateral is accorded treatment
substantially equal to that which the Lender accords its own property.

11. Remedies upon Default. If any Event of
Default shall have occurred and be continuing:

(a) The
Lender may exercise in respect of the Pledged Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of a secured party on default under the Uniform Commercial
Code in effect in the State of New York at that time (the "Code") (whether
or not the Code applies to the affected Collateral), and may also, without
notice except as specified below, sell the Pledged Collateral or any part
thereof in one or more parcels at public or private sale, at any exchange,
broker's board or at any of the Lender's offices or elsewhere, for cash, on
credit or for future delivery, and upon such other terms as the Lender may deem
commercially reasonable. The Pledgor agrees that, to the extent notice of sale
shall be required by law, at least ten days' notice to the Pledgor of the time
and place of any public sale or the time after which any private sale is to be
made shall constitute reasonable notification. The Lender shall not be
obligated to make any sale of Pledged Collateral regardless of notice of sale
having been given. The Lender may adjourn any public or private sale from time
to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so
adjourned.

(b) Any
cash held by the Lender as Pledged Collateral and all cash proceeds received by
the Lender in respect of any sale of, collection from, or other realization
upon all or any part of the Pledged Collateral may, in the discretion of the
Lender, be held by the Lender as collateral for, and/or then or at any time
thereafter be applied (after payment of any amounts payable to the Lender
pursuant to Section 14) in whole or in part by the Lender against, all or any
part of the Secured Obligations in such order as the Lender shall elect. Any
surplus of such cash or cash proceeds held by the Lender and remaining after
payment in full of all the Secured Obligations shall be paid over to the
Pledgor or to whomsoever may be lawfully entitled to receive such surplus.

(c) The
Pledgor recognizes that Lender may be unable to effect a public sale of all or
part of the Pledged Collateral by reason of certain provisions contained in the
1933 Act or in the rules and regulations promulgated thereunder or in
applicable state securities or blue sky laws, but may be compelled to resort to
one or more private sales to a restricted group of purchasers who will be
obliged to agree, among other things, to acquire the Pledged Collateral for
their own account, for investment and not with a view to the distribution or
resale thereof. The Pledgor acknowledges and agrees that private sales so made
may be at prices and on other terms less favorable to the seller than if the
Pledged Collateral were sold at a public sale, and that the Lender has no
obligation to delay the sale of the Pledged Collateral for the period of time
necessary to permit the registration of the Pledged Collateral for public sale
under the 1933 Act and under applicable state securities or Blue Sky laws. The
Pledgor agrees that a private sale or sales made under the foregoing
circumstances shall be deemed to have been made in a commercially reasonable
manner.

12. Registration Rights. (a) If the Lender
shall determine to exercise its right to sell all or any of the Pledged
Collateral pursuant to Section 11, the Pledgor agrees that, upon request of the
Lender, the Pledgor will, at its own expense:

(i) execute and deliver, and use its best efforts to
cause the Company to execute and deliver, all such instruments and documents,
and do or cause to be done all such other acts and things, as may be necessary
or, in the opinion of the Lender, advisable to register such Pledged Collateral
under the provisions of the 1933 Act (as defined in the Credit Agreement), and
to cause the registration statement relating thereto to become effective and to
remain effective for such period as prospectuses are required by law to be
furnished, and to make all amendments and supplements thereto and to the
related prospectus which, in the opinion of the Lender, are necessary or
advisable, all in conformity with the requirements of the 1933 Act and the
rules and regulations of the SEC (as so defined) applicable thereto;

(ii) endeavor to qualify the Pledged Collateral under
the state securities or "Blue Sky" laws and to obtain all necessary
governmental approvals for the sale of the Pledged Collateral, as requested by
the Lender;

(iii) use its best efforts to cause the Company to
make available to its security holders, as soon as practicable, an earning
statement which will satisfy the provisions of Section 11(a) of the 1933 Act;
and

(iv) do or cause to be done all such other acts and
things as may be necessary to make such sale of the Pledged Collateral or any
part thereof valid and binding and in compliance with applicable law.

(b) The
Pledgor agrees that it shall take any and all actions necessary (including
using its best efforts to cause the Registration Rights Agreement (as defined
below) to be amended so that the Lender will be a party to such agreement) to
ensure that the portion of the Pledged Collateral that is deemed to be
Registrable Securities (as defined in the Registration Rights Agreement dated
November 1, 1999 (as amended, supplemented or otherwise modified from time to
time, the "Registration
Rights Agreement") among each of the Holders executing a
signatory page thereto and the Company) shall have "piggy-back" registration
rights of the Pledgor pursuant to Section 2 of the Registration Rights
Agreement. The Pledgor further agrees that, upon request of the Lender, as
between the Pledged Collateral and all other shares of the Company legally and
beneficially owned by the Pledgor, the Pledgor shall cause the Pledged
Collateral to be registered pursuant to Section 2 of the Registration Rights
Agreement prior to any other such shares (other than shares then pledged to
KeyBank to secured obligations under the Credit Agreement).

13. Instructions from Lender. The Pledgor
hereby authorizes and instructs each issuer of any Pledged Shares pledged
hereunder to (i) comply with any instruction received by it from the Lender in
writing that (x) states that an Event of Default has occurred and is continuing
and (y) is otherwise in accordance with the terms of this Agreement, without
any other or further instructions from the Pledgor, and the Pledgor agrees that
each such issuer shall be fully protected in so complying, and (ii) unless
otherwise expressly permitted hereby, pay any dividends or other payments with
respect to the Pledged Shares directly to the Lender.

14. Expenses. The Pledgor will upon demand
pay to the Lender the amount of any and all reasonable expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents,
which the Lender may incur in connection with (i) the administration of this
Agreement, (ii) the custody or preservation of, or the sale of, collection
from, or other realization upon, any of the Pledged Collateral, (iii) the
exercise or enforcement of any of the rights of the Lender hereunder or (iv)
the failure by the Pledgor to perform or observe any of the provisions hereof.

15. Amendments, etc. No amendment or waiver
of any provision of this Agreement, and no consent to any departure by the
Pledgor herefrom, shall in any event be effective unless the same shall be in
writing and signed by the Lender, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

16. Addresses for Notices. All notices and
other communications provided for hereunder shall be in writing (including
telecopier, electronic e-mail, telegraphic, telex or cable communication) and
mailed, telecopied, e-mailed, telegraphed, telexed, cabled or delivered to it,
at its address specified on the signature page hereto, or, as to either party,
at such other address as shall be designated by such party in a written notice
to the other party. All such notices and other communications shall be
effective when received.

17. Continuing Security Interest. This
Agreement shall create a continuing security interest in the Pledged Collateral
and shall (i) remain in full force and effect until the payment in full of
the Put Note and all other Secured Obligations, (ii) be binding upon the
Pledgor, and its successors and assigns, and (iii) inure to the benefit of, and
be enforceable by, the Lender and its successors, transferees and assigns. Upon
the payment in full of the Put Note and all other Secured Obligations, the
security interest granted hereby shall terminate and all rights to the Pledged
Collateral shall revert to the Pledgor. Upon any such termination, the Lender
will, at the Pledgor's expense, return to the Pledgor such of the Pledged
Collateral as shall not have been sold or otherwise applied pursuant to the
terms hereof and execute and deliver to the Pledgor such documents as the
Pledgor shall reasonably request to evidence such termination.

18. Governing Law; UCC Terms. This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York. Unless otherwise defined herein, terms defined in
Article 9 of the Code are used herein as therein defined.

19. Counterparts. This Agreement may be
executed in any number of counterparts, and by different parties on separate
counterparts, each of which shall be an original, but all of which together
shall constitute one agreement.

IN WITNESS WHEREOF,
the Pledgor and the Lender have caused this Agreement to be duly executed and
delivered as of the date first above written.

MECHANICAL TECHNOLOGY INCORPORATED,

as Pledgor

 

 

By_s/Cynthia A. Scheuer____________________

Name: Cynthia A. Scheuer

Title: Vice President and Chief Financial Officer

Address for Notices:

Mechanical Technology Incorporated

30 South Pearl Street

Albany, New York 12205

Attention: Chief Financial Officer

Telephone No.: (518) 433-2170 

Telecopier No.: (518) 433-2171

 

FIRST ALBANY COMPANIES INC.,

as Lender

 

 

By s/George M. NcNamee____________________

Name: George M. McNamee

Title: Chairman and Co-Chief Executive Officer

Address for Notices

First Albany Companies Inc.

30 South Pearl Street

Albany, New York 12205

Attention: Chief Financial Officer

Telephone No.: (518) 447-8059

Telecopier No.: (518) 447-8048

 

SCHEDULE I

	
  Stock
  Issuer
  	
  Class
  of Stock
  	
  Stock
  Certificate
  No.
  	
  Par
  Value
  	
  Number
  of
  Shares
  	
  Percentage
  of
  Outstanding
  Shares
  
	
  Plug Power Inc.
   
   
  	
  Common Stock
  	
   
  	
  $0.01
  	
  200,000
  	
  %Prepared by MerrillDirect

EXHIBIT
10.6b

 

FIRST
ALBANY CORPORATION

EMPLOYEES’
RETIREMENT AND SAVINGS PLAN

Amended
and Restated Effective January 1, 2000

 

 

TABLE
OF CONTENTS

	 
  	
  ARTICLE I
  
	 
  	 
  
	 
  	
  PURPOSE
  
	 
  	 
  
	 
  	
  ARTICLE II
  
	 
  	 
  
	 
  	
  DEFINITIONS AND CONSTRUCTION
  
	
  Section 2.1
  	
  Definitions
  
	
  Section 2.2
  	
  Construction
  
	 
  	 
  
	 
  	
  ARTICLE III
  
  
	 
  	 
  
	 
  	
  PARTICIPATION AND SERVICE
  
	 
  	 
  
	
  Section 3.1
  	
  Participation
  
	
  Section 3.2
  	
  Service
  
	
  Section 3.3
  	
  Break-in-Service for Purposes of Accrual of Benefits and Vesting
  
	
  Section 3.4
  	
  Military Service.
  
	 
  	 
  
	 
  	
  ARTICLE IV 
  
	 
  	 
  
	 
  	
  CONTRIBUTIONS
  
	 
  	 
  
	
  Section
  4.1
  	
  Employer Contributions.
  
	
  Section
  4.2
  	
  Participant
  Salary Reduction.
  
	
  Section 4.3
  	
  Limitation of Amount of Salary Reduction Contributions.
  
	
  Section 4.4
  	
  Rollover Amount From Other Plans.
  
	
  Section
  4.5
  	
  Discriminatory
  Contributions.
  
	
  Section 4.6
  	
  Contributions After Qualified Military Service Period.
  
	 
  	 
  
	 
  	
  ARTICLE V
  
  
	 
  	 
  
	 
  	
  ALLOCATIONS TO PARTICIPANTS’ ACCOUNTS
  
	 
  	 
  
	
  Section
  5.1
  	
  Individual Accounts.
  
	
  Section
  5.2
  	
  Account Adjustment
  
	
  Section 5.3
  	
  Maximum Additions
  
	 
  	 
  
	 
  	
  ARTICLE VI
  
	 
  	 
  
	 
  	
  BENEFITS
  
	 
  	 
  
	
  Section
  6.1
  	
  Retirement or Disability.
  
	
  Section 6.2
  	
  Death.
  
	
  Section
  6.3
  	
  Termination
  for Other Reasons.
  
	
  Section
  6.4
  	
  Payment of Benefits.
  
	
  Section
  6.5
  	
  Designation
  of Beneficiary.
  
	
  Section 6.6
  	
  Qualified Domestic Relations Order.
  
	
  Section
  6.7
  	
  Required Distributions.
  
	 
  	 
  
	 
  	
  ARTICLE VII 
  
	 
  	 
  
	 
  	
  TOP-HEAVY PROVISIONS
  
	 
  	 
  
	
  Section
  7.1
  	
  Top-Heavy Provisions
  
	 
  	 
  
	 
  	
  ARTICLE VIII
  
	 
  	 
  
	 
  	
  WITHDRAWALS AND LOANS
  
	 
  	 
  
	
  Section
  8.1
  	
  Withdrawal While Employed.
  
	
  Section 8.2
  	
  Withdrawals of Employer Contributions.
  
	
  Section
  8.3
  	
  Loans to Participants.
  
	 
  	 
  
	 
  	
  ARTICLE IX 
  
	 
  	 
  
	 
  	
  TRUST AND ADMINISTRATION
  
	 
  	 
  
	
  Section 9.1
  	
  Trust Fund.
  
	
  Section
  9.2
  	
  Allocation
  of Responsibility Among Fiduciaries for Plan and Trust Administration;
  Appointment of Committee.
  
	
  Section 9.3
  	
  Payment of Compensation and Expenses.
  
	
  Section 9.4
  	
  Claims Procedure.
  
	
  Section
  9.5
  	
  Records and Reports.
  
	
  Section 9.6
  	
  Other Committee Powers and Duties.
  
	
  Section
  9.7
  	
  Rules and Decisions.
  
	
  Section
  9.8
  	
  Committee Procedures.
  
	
  Section 9.9
  	
  Authorization of Benefit Payments.
  
	
  Section 9.10
  	
  Application and Forms for Benefits.
  
	
  Section
  9.11
  	
  Facility of Payment.
  
	
  Section 9.12
  	
  Indemnification of the Committee.
  
	 
  	 
  
	 
  	
  ARTICLE X 
  
	 
  	 
  
	 
  	
  MISCELLANEOUS
  
	 
  	 
  
	
  Section
  10.1
  	
  Nonguarantee
  of Employment.
  
	
  Section
  10.2
  	
  Rights to Trust Assets.
  
	
  Section
  10.3
  	
  Nonalienation of Benefits.
  
	
  Section 10.4
  	
  Incapacity.
  
	
  Section 10.5
  	
  Missing Payee.
  
	
  Section
  10.6
  	
  Nonforfeitability
  of Benefits.
  
	
  Section 10.7
  	
  Discontinuance of Employer Contributions.
  
	
  Section 10.8
  	
  Severability.
  
	
  Section 10.9
  	
  Construction.
  
	
  Section
  10.10
  	
  Agent
  for Service of Process.
  
	 
  	 
  
	 
  	
  ARTICLE XI 
  
	 
  	 
  
	 
  	
  AMENDMENTS AND TERMINATION
  
	 
  	 
  
	
  Section 11.1
  	
  Amendments.
  
	
  Section 11.2
  	
  Right to Terminate; Successor Employers.
  
	
  Section
  11.3
  	
  Partial Termination.
  
	
  Section
  11.4
  	
  Liquidation
  of the Trust Fund.
  
	
  Section
  11.5
  	
  Manner of Distribution.
  
	
  Section
  11.6
  	
  Action by Employer.
  
	 
  	 
  
	 
  	
  ARTICLE XII
  
	 
  	 
  
	 
  	
  MERGER OR CONSOLIDATION OF PLANS
  
	 
  	 
  
	
  Section 12.1
  	
  Plan Assets.
  
	 
  	 
  
	 
  	
  ARTICLE XIII
  
  
	 
  	 
  
	 
  	
  THE TRUSTEE
  
	 
  	 
  
	
  Section 13.1
  	
  Trust Agreement.
  
	
  Section
  13.2
  	
  Powers of the Trustee.
  
	
  Section
  13.3
  	
  Removal of the Trustee.
  
	
  Section
  13.4
  	
  Payment of Expenses.
  

 

 

ARTICLE I

PURPOSE

          WHEREAS,
First Albany Corporation adopted the Deferred Profit Sharing Plan for First
Albany Corporation (“Plan”) on October 1, 1982 for its Employees, and

          WHEREAS,
the Plan was amended and restated and renamed The First Albany Corporation
Employees’ Retirement and Savings Plan effective January 1, 1989, and was
subsequently amended to reflect various operational changes; and

          WHEREAS,
First Albany Corporation now desires to amend and restate the Plan to comply
with the Uruguay Round Agreements Act, the Uniformed Services Employment and
Reemployment Rights Act of 1994, the Small Business Job Protection Act of 1996,
and the Taxpayer Relief Act of 1997, and to make certain other changes;

          NOW,
THEREFORE, First Albany Corporation adopts the Plan, as set forth herein.

          The
Plan and Trust are intended to meet the requirements of Sections 401(a), 401(k)
and 501(a) of the Internal Revenue Code of 1986, as amended, and the Employee
Retirement Income Security Act of 1974, as amended.

          Except
as otherwise provided herein, the provisions of this Plan shall apply only to
an Employee who terminates employment on or after the effective date of this
restatement.

ARTICLE II

DEFINITIONS AND CONSTRUCTION

 
         Section 2.1   Definitions.  Where the following words and phrases appear
in this Plan, they shall have the respective meanings set forth in this
Article, unless the context clearly indicates to the contrary.

                    Accounts.  The Employee Contribution Account, the
Employer Additional Account, the Employer Matching Account, the Salary
Reduction Account and the Rollover Account to the extent applicable with
respect to any Participant or Former Participant.

                    Actual
Contribution Percentage.  For
purposes of Section 4.5, Actual Contribution Percentage has the meaning
defined in Code Section 401(m)(3).

                    Actual Deferral
Percentage.  For purposes of
Section 4.5, Actual Deferral Percentage has the meaning set forth in Code
Section 401(k)(3)(B).

                    Additions.  With respect to each Plan Year, the total of
the Employer Contributions allocated to a Participant’s Salary Reduction
Account, Employer Matching Account, and Employer Additional Account.

                    Administrator (or
Plan Administrator).  The
Administrative Committee.

                    After-Tax Employee
Contributions.  The contributions
made to the Plan at the election of a Participant pursuant to Section 4.5
of the Plan as amended effective July 15, 1993.  Effective January 1, 1997, no further After-Tax Contributions are
permitted under the Plan.

                    Authorized Leave
of Absence.  Any absence authorized
by an Employer under the Employer’s standard personnel practices, provided that
all persons under similar circumstances must be treated alike in the granting
of such Authorized Leaves of Absence, and provided further that the Participant
returns within the period specified in the Authorized Leave of Absence.

                    Beneficiary.  The spouse or other person designated in
writing by the Participant in accordance with the provisions of
Section 6.5 to receive any death benefit which shall be payable under this
Plan.

                    Break-in-Service.  A Plan Year in which a Participant fails to
complete 500 Hours of Service after application of Section 3.3.

                    Board of Directors.  The Board of Directors of First Albany
Corporation.

                    Code (or IRC).  The Internal Revenue Code of 1986, as
amended from time to time.

                    Code
Section 415 Compensation. 
Compensation as defined in Section 415(c)(3) of the Code.

                    Committee (or Administrative
Committee).  The person or persons
appointed under the provisions of Article 9 to administer the Plan.

                    Common Stock.  The common stock of First Albany Companies
Inc.

                    Compensation.  The total of base salary, variable
compensation (sales commission), and bonuses (including discretionary bonuses)
in a Plan Year paid to a Participant by an Employer for personal services
before any payroll deductions for federal, state or local income taxes or other
withholdings required by law, plus voluntary salary reductions elected by the
Participant and not includible in gross income of the Participant under
Sections 125 or 402(e)(3) of the Code. 
Effective January 1, 1991, Compensation shall also include overtime in a
Plan Year paid to a Participant by an Employer.  Compensation shall not include amounts paid to the Participant
under a severance agreement or amounts deemed severance payments under any
contract between an Employer and the Participant.  Direct or indirect expenses of an Employer incurred in providing
the Participant with additional fringe benefits, any and all amounts reimbursed
to a Participant as payment of business expenses incurred by the Participant
for the benefit of an Employer (including premiums paid by the Employer with
respect to group-term life insurance), and, except as specifically set forth in
this Section 2.1, Employer contributions to this Plan (other than the
Participant’s elective deferrals to this Plan) or to any other qualified or
non-qualified benefit program maintained by an Employer (other than a
Participant’s elective deferrals to any such plan) are not considered
Compensation for purposes of this Plan. 
For all Plan Years beginning on or after January 1, 1989 and ending
before or on December 31, 1993, Compensation for purposes of the Plan shall not
exceed $200,000 per year (as adjusted from time to time by the Secretary of the
Treasury).  Effective for Plan Years
beginning on or after January 1, 1994, Compensation for purposes of the Plan
shall not exceed the dollar amount as may be applicable under
Section 401(a)(17) of the Code ($170,000 for the Plan Year beginning on
January 1, 2000).

                    Disability. A
physical or mental condition which qualifies the Participant for benefits under
the Employer’s long-term disability plan.

                    Effective Date.  October 1, 1982.

                    Employee.  Any person who is under the employ of an
Employer who is classified as an employee on the payroll records of an Employer
and who is receiving remuneration for personal services rendered to an Employer
or would be receiving such remuneration except for an Authorized Leave of
Absence and whose customary employment is for not less than 1,000 Hours of
Service during any twelve (12) consecutive month period.  “Employee” shall not include: (i) Employees
whose employment is governed by the terms of a collective bargaining agreement
between Employee representatives (within the meaning of Code
Section 7701(a)(46)) and an Employer or any controlled group member under
which retirement benefits were the subject of good faith bargaining between the
parties unless such agreement expressly provides for coverage in this Plan or
two (2) percent or more of the Employees of the Employer and controlled group
members who are covered pursuant to that agreement are professionals as defined
in Section 1.410(b)-9 of the Treasury regulations and the coverage
requirements of Section 410(b) of the Code would not otherwise be met; or
(ii) leased employees within the meaning of Section 414(n)(2) of the Code
unless the requirements of Section 414(n)(2) of the Code require such
leased employees to be included in order to meet the Plan qualification
requirements enumerated in that section of the Code; or (iii) Employees who are
nonresident aliens (within the meaning of Section 7701(b)(1)(B) of the
Code and who receive no earned income (within the meaning of
Section 911(d)(2) of the Code) from an Employer or any controlled group
member that constitutes income from sources within the United States (within
the meaning of Section 861(a)(3) of the Code).  In addition, any individual not classified as an employee on the
payroll records of the Employer (or any entity that is a member of the
controlled group of the Employer within the meaning of section 414(b), (c), (m)
or (o) of the Code) for a particular period shall not be considered an Employee
for such period even if a court or administrative agency subsequently
determines that such individual was a common law employee of the Employer (or
an entity that is a member of the controlled group of the Employer within the
meaning of section 414(b), (c), (m) or (o) of the Code) during such period.

          The
term Employee shall also include any Other Employee who has completed 1,000
Hours of Service during any twelve (12)-month period.

                    Employee
Contribution Account.  The account
maintained for a Participant to record After-Tax Employee Contributions made by
a Participant pursuant to Section 4.6 of the Plan effective July 15, 1993
and adjustments relating thereto.  Upon
termination of employment, a Participant’s Employee Contribution Account shall
be distributed in accordance with Article VI.

                    Employer.  First Albany Corporation, a New York
corporation, and any successor thereto. 
The term “Employer” shall include any other entity which is a member of
a controlled group of corporations (determined in accordance with
Section 414(b), (c) or (m) of the Code), of which the Employer is a
member, and any other trade or business (whether or not incorporated) which is
under common control with the Employer and who, with the approval of First
Albany Corporation, has specifically adopted this Plan in writing.

                    Employer
Additional Account.  The account
maintained for a Participant to record his share of the Employer Additional
Contributions and adjustments relating thereto.

                    Employer
Additional Contributions.  The
contributions made to the Plan pursuant to Section 4.1(c).

                    Employer
Contributions.  The contributions
made to the Plan by an Employer pursuant to Section 4.1.

                    Employer
Contributions Accounts.  The Salary
Reduction Account, Employer Matching Account, and Employer Additional Account.

                    Employer Matching
Account.  The account maintained for
a Participant to record his share of the Employer Matching Contributions
described in Section 4.1(b) and adjustments relating thereto.

                    Employer Matching
Contributions.  The contributions
made to the Plan pursuant to Section 4.1(b).

                    ERISA.  Public Law No. 93-406, the Employee
Retirement Income Security Act of 1974, as amended from time to time.

                    Excess Aggregate
Contributions.  For purposes of
Section 4.5, Excess Aggregate Contributions has the meaning set forth in
Section 401(m)(6)(3) of the Code.

                    Excess Deferrals.  For purposes of Section 4.3, Excess
Deferrals has the meaning set forth in Section 402(g)(2) of the Code.

                    Fiduciaries.  The Employer, the Administrator and the
Trustee, but only with respect to the specific responsibilities of each for
Plan and Trust administration.

                    Former Participant.  A Participant whose employment with all
Employers has terminated, but who has a vested account balance under the Plan
which has not been paid in full.

                    Highly Compensated
Employee.  An Employee who is
considered highly compensated within the meaning of Section 414(q) of the
Code.  For purposes of determining which
employees are considered highly compensated pursuant to regulations under
Section 414(q) of the Code, the look-back year calculation for a
determination year shall be made on the basis of the calendar year ending with
or within the applicable determination year.

          For
Plan Years beginning on or after the Restatement Effective Date, a Highly
Compensated Employee is an employee who

                    (1)      was
a 5% owner of the Employer, as defined in Section 416 of the Code, at any
time during the Plan Year or the preceding Plan Year; or

                    (2)      for
the preceding Plan Year

          

                    (i)       had
compensation from the Employer in excess of $85,000 as adjusted from time to
time in accordance with the regulations of the Secretary of the Treasury, and

                    (ii)      was
in the group consisting of the top 20% of employees ranked by compensation for
such preceding Plan Year.

          For purposes of determining the number of
employees in such group, the following may be excluded:

                    (i)       employees
who have not completed 6 months of Service by the end of such preceding Plan Year;

                    (ii)      employees
who normally work less than 17.5 hours per week;

                    (iii)     employees
who normally work less than 6 months during any year;

                    (iv)     employees
who have not attained age 21 by the end of such preceding Plan Year; and

                    (v)      employees
who are non-resident aliens and receive no earned income from the Employer that
constitutes income from sources within the United States.

          For
purposes of determining who is a Highly Compensated Employee, the term Employer
shall include any entity which is a member of the controlled group of which
First Albany Corporation is a member within the meaning of Section 414(b), (c)
or (m) of the Code.

                    Hour of Service.  Each Employee will be credited with an Hour
of Service for:

                    (1)      Each
hour for which an Employee is directly or indirectly paid or entitled to
payment by an Employer for the performance of duties.  These hours shall be credited to the Employee for the computation
period or periods in which the duties are performed; and

                    (2)      Each
hour for which an Employee is directly or indirectly paid or entitled to
payment by an Employer for reasons (such as vacation, sickness or Disability)
other than for the performance of duties irrespective of whether the employment
relationship has terminated.  These
hours shall be credited to the Employee for the computation period or periods
in which nonperformance of duties occurs; and

          

          (3)      Each hour for which back
pay, irrespective of mitigation of damage, has been either awarded or agreed to
by an Employer.  These hours shall be
credited to the Employee for the computation period or periods to which the
award or agreement pertains rather than the computation period in which the
award, agreement or payment was made.

All Hours of Service will be credited in
accordance with Department of Labor Regulation 2530.200(b)-2(b) and (c).  For purposes of determining whether an
Employee has satisfied the participation requirements of Section 3.01 and
determining whether an Employee has accrued a year of Service for purposes of
satisfying the vesting requirements of Section 4.01(b), Hours of Service shall
include any Hour of Service with any entity that is a member of First Albany
Corporation’s controlled group within the meaning of Code Section 414(b), (c)
or (m).

                    Loan Account.  The account maintained for a Participant to
record loans and adjustments thereto made from the Participant’s accounts.

                    Normal Retirement
Age.  The Participant’s sixty-fifth
(65th) birthday.

                    Other Employee.  Any person who is under the employ of an
Employer and who is receiving remuneration for personal services rendered to an
Employer or would be receiving such remuneration except for an Authorized Leave
of Absence and who is not expected to but nevertheless does complete 1,000
Hours of Service in any twelve (12)-month period.  “Other Employee” shall not include: (i) Employees whose
employment is governed by the terms of a collective bargaining agreement
between Employee representatives (within the meaning of Code Section 7701(a)(46))
and an Employer or any controlled group member under which retirement benefits
were the subject of good faith bargaining between the parties unless such
agreement expressly provides for coverage in this Plan or two (2) percent or
more of the Employees of an Employer and controlled group members who are
covered pursuant to that agreement are professionals as defined in
Section 1.410(b)-9 of the Treasury regulations and the coverage
requirements of Section 410(b) of the Code would not otherwise be met; or
(ii) leased employees within the meaning of Section 414(n)(2) of the Code
unless the requirements of Section 414(n)(2) of the Code require such
leased employees to be included in order to meet the Plan qualification
requirements enumerated in that section of the Code and the coverage requirements
of Section 410(b) of the Code would not otherwise be met; or (iii)
Employees who are nonresident aliens (within the meaning of
Section 7701(b)(1)(B) of the Code and who receive no earned income (within
the meaning of Section 911(d)(2) of the Code) from an Employer or any
controlled group member that constitutes income from sources within the United
States (within the meaning of Section 861(a)(3) of the Code).

                    Participant.  An Employee participating in the Plan in
accordance with the provisions of Section 3.1.

                    Participation.  The period commencing as of the date the
Employee became a Participant and ending on the date he is no longer an
Employee.

                    Participation Date.  The first day of the payroll period after an
Employee has satisfied the eligibility requirements of Section 3.1 and has
returned the required forms to participate in the Plan.

                    Plan.  First Albany Corporation Employees’
Retirement and Savings Plan.

                    Plan Year (and
Limitation Year).  The twelve (12)
month period beginning January 1 and ending December 31.

                    Qualified Employer
Matching Contributions.  Employer
Matching Contributions that meet the withdrawal and nonforfeitability
restrictions of Code Section 401(k)(2)(B) and (C) and which the Employer
elects to deem as Qualified Employer Matching Contributions (as defined in
Section 1.401(k)-1(g)(13) of the Treasury regulations) pursuant to
Section 4.5(b).

                    Qualified
Nonelective Contributions.  For
purposes of Section 4.5, Qualified Nonelective Contributions has the
meaning set forth in Code Section 401(m)(4)(C).

                    Restatement
Adoption Date.  The date that the
January 1, 2000 restatement of the Plan is adopted by First Albany Corporation.

                    Restatement
Effective Date.  January 1, 2000.

                    Retirement.  Termination of employment after attainment
of age sixty-five (65).  Retirement
shall commence on the first day of the month following a Participant’s last day
of employment or Authorized Leave of Absence, if later.

                    Rollover Account.  The account maintained for a Participant to
record amounts transferred to the Trust Fund pursuant to Section 4.4 and
adjustments relating thereto.

                    Salary Reduction
Account.  The account maintained for
a Participant to record contributions made pursuant to a salary reduction
agreement described in Section 4.2 and adjustments relating thereto.

                    Salary Reduction
Contributions.  The contributions
made to the Plan pursuant to a salary reduction agreement or one-time election
described in Section 4.2.

                    Service.  The Participant’s period of employment with
an Employer determined in accordance with Sections 3.2, 3.3 and 3.4.

                    Trust Agreement.  The Trust Agreement between the Committee
and the Trustee established for the purpose of funding benefits under the Plan.

                    Trust Fund (or
Trust).  The fund known as the First
Albany Corporation Employees’ Retirement and Savings Trust in accordance with
Article 14, as amended from time to time, which constitutes a part of this
Plan.

                    Trustee.  The corporation or individuals appointed by
the Committee to administer the Trust.

                    Valuation Date.  The last day of each Plan Year (or other
period designated by the Administrator) or the date on which a special
valuation is made pursuant to Section 5.2.

                    Valuation Period.  The Plan Year or any other period of less
than a year designated by the Administrator.

 
         Section 2.2   Construction.  The masculine gender where appearing in the
Plan, shall be deemed to include the feminine gender, and the singular may
include the plural, unless the context clearly indicates to the contrary.  The words “hereof,” “herein,” “hereunder,”
and any other similar compounds of the word “here” shall mean and refer to the
entire Plan, not to any particular provision or Section.

ARTICLE III

PARTICIPATION AND SERVICE

 
         Section 3.1   Participation.  An Employee shall become a Participant in
this Plan as follows:

                    (a)      Any Employee included
under the prior provisions of the Plan as of the Restatement Effective Date
shall continue to participate in accordance with the provisions of this amended
and restated Plan.

                    (b)      The participation of any
other Employee, except as otherwise provided in this paragraph, shall commence
as of the first day of the payroll period of an Employer that begins after the
Employee has completed at least five hundred (500) Hours of Service during any
consecutive six (6)-month period and has returned the required forms to
participate in the Plan.  If any such
Employee has not completed five hundred (500) Hours of Service in a consecutive
six (6) month period but has nonetheless completed one thousand (1000) Hours of
Service in a consecutive twelve (12) month period, the participation of such
Employee shall commence as of the first day of the payroll period of an
Employer that begins after the Employee has completed at least one thousand
(1000) Hours of Service during a consecutive twelve (12) month period and has
returned the required forms to participate in the Plan.  The participation of any Other Employee
shall commence as of the first day of the payroll period of an Employer after
the Employee has completed 1,000 Hours of Service in a consecutive twelve
(12)-month period and has returned the required forms to participate in the
Plan.

          After
a Break-in-Service, the provisions of Section 3.3 shall be applicable.

 
         Section 3.2   Service.  Subject to the Break-in-Service provisions,
an Employee shall accrue a year of Service for vesting purposes with respect to
each Plan Year in which he has 1,000 or more Hours of Service whether or not he
is in employment at the end of the Plan Year.

 

 
         Section 3.3   Break-in-Service for Purposes of Accrual
of Benefits and Vesting.  For purposes of this Section, the term
“One-Year Break-in-Service” means a Plan Year during which the Participant has
not completed more than 500 Hours of Service.

          A
Participant on Authorized Leave of Absence shall not be considered to have
incurred a Break-in-Service while on such Authorized Leave of Absence.

                    (a)      General Rule.  Except as otherwise provided in
Section 3.2 or 3.3(b) all years of Service shall be taken into account in
computing the period of Service.

                    (b)      One-Year
Break-in-Service.  In computing the
Employee’s period of Service in the case of any Participant who has any
One-Year Break-in-Service, Service before such break shall be taken into
account under the Plan.  Participation
shall be effective on the date of reemployment.  In the case of any Participant who has five (5) consecutive
One-Year Breaks-in-Service, years of Service after such five-year period shall
not be counted for purposes of determining his vested percentage in Employer
Matching Contributions that accrued before such five (5)-year period.

          If
a Participant is laid off and returns as an Employee in active service within
six (6) months of his layoff, the period of his layoff shall be considered as a
period of active employment with an Employer in determining his years of
Service.  If the Participant returns as
an Employee in active service after six (6) months but within twelve (12)
months of his layoff, his employment shall not be deemed to have terminated by
reason of such layoff for purposes of the Plan but the period of his layoff
shall not be considered in determining his years of Service.

          If
at the end of twelve (12) months the Participant has not returned as an
Employee in active service, then, notwithstanding any other provision of the
Plan, his employment shall be deemed to have terminated at such time for
purposes of the Plan.

                    (c)      In the case of each
Employee who is absent from work for any period:

                  (i)       By
reason of the pregnancy of the Employee,

                  (ii)      By
reason of the birth of a child of the Employee,

                  (iii)     By
reason of the placement of a child with the Employee in connection with the
adoption of such child by such Employee, or

                  (iv)     For
purposes of caring for such child for a period beginning immediately following
such birth or placement,

the
Plan shall treat as Hours of Service, solely for purposes of determining under
this Subsection whether a One-Year Break-in-Service has occurred, the hours
described in Section 3.3(d).

                    (d)      The hours described in
this Section 3.3(d) are:

                              (i)       The
hours of Service which otherwise would normally have been credited to such
Employee but for such absence, or

                              (ii)      In
any case in which the Plan is unable to determine the hours described in clause
(i), eight (8) Hours of Service per day of such absence, except that the total
number of hours treated as Hours of Service under this Section 3.3(d) by
reason of any such pregnancy or placement shall not exceed 501 hours.

                    (e)      The hours described in
Section 3.3(d) shall be treated as Hours of Service as provided in this
Section:

                  (i)       Only
in the Plan Year in which the absence from work begins, if a Participant would
be prevented from incurring a One-Year Break-in-Service in such Plan Year
solely because periods of absence are treated as Hours of Service as provided
in Section 3.3(d), or

                  (ii)      In
any other case, in the immediately following Plan Year.

                    (f)       No credit will be given
pursuant to this paragraph unless the individual furnishes to the Committee
such timely information as it may reasonably require to establish:

                  (i)       That
the absence from work is for reasons referred to in Section 3.3(c), and

                  (ii)      The
number of days for which there was such an absence.

 
         Section 3.4   Military Service.  For Plan Years beginning on or after
December 12, 1994, any Employee who leaves the active service of an Employer to
enter a uniformed service of the United States shall not incur a
Break-in-Service for the period of uniformed service including any period after
discharge from such uniformed service in which the Employee’s reemployment
rights are guaranteed under the Uniformed Services Employment and Reemployment
Rights Act of 1994, provided the Employee applied for reemployment or is
reemployed by the Employer prior to the expiration of such period after
discharge, and the duration of such leave of absence shall be included in
determining Service.

ARTICLE IV

CONTRIBUTIONS

 
         Section 4.1   Employer Contributions.  Subject to the limitations set forth in
Sections 4.3 and 4.5, for each Plan Year, First Albany Corporation or any other
Employer shall make contributions on behalf of Plan Participants equal to the
sum of:

                    (a)      Salary Reduction
Contributions.  The amount of
contributions made to the Plan by an Employer on behalf of a Participant
pursuant to a salary reduction agreement under Section 4.2 entered into
between an Employer and Participants for such Plan Year.  The Employer shall make Salary Reduction
Contributions as of the earliest date on which such contributions can reasonably
be segregated from the general assets of the Employer, but in no event later
than the fifteenth (15th) business day of the month following the
month in which such amounts would otherwise be paid as part of the
Participant’s Compensation.

                    (b)      Employer Matching
Contributions.  For Plan Years
beginning on or after the Restatement Effective Date, First Albany Corporation,
in its sole discretion and consistent with the nondiscrimination requirements
of the Code, may declare Employer Matching Contributions with respect to the
Participant’s Salary Reduction Contributions to be made in such Plan Year in
accordance with the Participant’s salary reduction agreement as described in
paragraph (i) of Section 4.2 of this Plan which Employer Matching
Contributions shall be made by First Albany Corporation or another Employer
accordingly.  No Employer Matching
Contribution shall be made with respect to any Salary Reduction Contribution
made pursuant to a one-time election as described in paragraph (ii) of Section
4.2 of this Plan.  To the extent
Employer Matching Contributions are to be made with respect to any Plan Year,
the amount of such Contributions shall be determined by the Committee up to a
specific percent of each Participant’s Compensation and/or a maximum dollar
limit as specified by the Committee for any given Plan Year consistent with the
nondiscrimination requirements of the Code. 
The Committee also may limit any such Employer Matching Contributions
for any given year only to Participants whose Compensation does not exceed a
specified dollar amount in any given Plan Year or as the Committee in its sole
discretion shall otherwise determine. 
For the Plan Year beginning on the Restatement Effective Date, the
Employer Matching Contribution for any Participant who is credited with at
least 1000 Hours of Service in the year of the Restatement Adoption Date shall
not be less than the Employer Matching Contribution such Participant would have
received under the Plan as in effect immediately prior to the Restatement
Effective Date, whether or not such Participant is in the active employ of an
Employer on the last day of the Plan Year.

          

          Employer Matching Contributions may take the form of Common Stock to
the extent to which the amount to be contributed under this paragraph can be
paid in whole shares of such stock.  To
the extent to which the amount to be contributed under this paragraph exceeds
the amount that can be paid in whole shares of the Common Stock, the Employer
Matching Contribution will be made in cash. For purposes of determining the
number of shares to be allocated as Employer Matching Contributions with
respect to any Plan Year for which they are declared, the value of the Common
Stock shall be measured by the average of the closing price of such stock on
the last business day of each month for all months of a Plan Year for which the
Employer Matching Contribution is declared. 
Employer Matching Contributions will be made as soon as reasonably
practicable after the end of the Plan Year for which the Employer Matching
Contribution is declared.  Except as
otherwise provided in this Section 4.1(b) or Sections 6.1 or 6.2, a Participant
must be employed by an Employer on the last day of the Plan Year to receive any
Employer Matching Contribution with respect to such Plan Year.

          For
Plan Years beginning on or after the Restatement Effective Date, a Participant
shall have a vested interest in the amounts contributed to his Employer
Matching Account in accordance with the following schedule:

	
  Years of Service

  

  	
  % Vested

  

  
	 
  	 
  
	
  1
  	
  25%
  
	 
  	 
  
	
  2
  	
  50%
  
	 
  	 
  
	
  3
  	
  75%
  
	 
  	 
  
	
  4
  	
  100%
  

          Notwithstanding
the foregoing, (i) any Participant who was a Participant in the Plan prior to
the Restatement Adoption Date shall be 100% vested in amounts attributable to
his Employer Matching Account accrued as of that date, (ii) any Participant who
completed 1000 Hours of Service in the year of the Restatement Adoption Date
shall be 100% vested in the amount of Employer Matching Contributions required
to be made to that Participant under the terms of the Plan as in effect
immediately prior to the Restatement Effective Date made with respect to the
Plan Year of the Restatement Adoption Date, and (iii) any Participant who has
three (3) or more years of Service as of the Restatement Adoption Date shall be
100% vested in all Employer Matching Contributions made under the Plan.

                    (c)      Employer Additional
Contributions.  First Albany
Corporation, in its sole discretion, may declare Employer Additional
Contributions with respect to any Plan Year. 
Additional Contributions will be a percentage of total annual
Compensation, excluding sales commissions, of all Participants other than
Highly Compensated Employees and Employees more than 50% of whose Compensation
was earned as sales commissions.  The
amount, if any, to be contributed by First Albany Corporation or any other
Employer shall be determined as a percentage of Compensation paid to such
Participants who had a year of Service during such Plan Year and, except as
otherwise provided in Sections 6.1 and 6.2, who are employed by an Employer on
the last day of the Plan Year for which the Employer Additional Contribution is
declared.  Employer Additional
Contributions may be made in cash or Common Stock or any combination thereof as
First Albany Corporation, in its sole discretion, shall determine.  Amounts credited to a Participant’s Employer
Additional Account shall be 100% vested and nonforfeitable at all times.

          Solely for purposes of determining
the Plan Year with respect to which a contribution is made, a contribution
shall be deemed made on account of the Plan Year that (a) the Board of
Directors determines the amount of such contribution by appropriate action and
announces the amount in writing to Employees, or (b) First Albany Corporation
designates such amount in writing to the Trustee as payment on account of such
Plan Year, or (c) an Employer claims such amount as a deduction on his federal
tax return for such Plan Year.

          Notwithstanding
anything in this Article 4 to the contrary, Employer contributions for any year
(whether made pursuant to Section 4.1 or otherwise) shall not exceed the
amount deductible for such year for income tax purposes as a contribution to
the Trust under the applicable provisions of the Code and all contributions of
an Employer are conditioned on their deductibility under Code Section 404,
except that such minimum allocations required under Section 7.1(b) of the
Plan shall be made regardless of whether or not they are deductible for federal
income tax purposes.

 
         Section 4.2   Participant Salary Reduction.  (i) Each Plan Year, a Participant may elect
to enter into a written salary reduction agreement with an Employer, which will
be effective as soon as reasonably practicable after received and once made
effective will be applicable to all payroll periods within such Plan Year that
occur after the agreement is received and made effective, and such Participant
may elect to have salary reduction contributions made from his year-end bonus,
if any.  The terms of any such salary
reduction agreement shall provide that the Participant agrees to accept a
reduction in salary from the Employer in an amount equal to any whole
percentage of his Compensation per payroll period, provided that such amount,
when aggregated with all salary reductions made on his behalf to the Plan for
the Plan Year, shall not exceed 15% of Compensation.  (ii) In addition to or in lieu of the above salary reduction
agreement a Participant may elect to reduce his salary by any whole dollar amount,
provided that such amount, when aggregated with all salary reductions made on
his behalf to the Plan for the Plan Year, shall not exceed 15% of the
Participant’s Compensation as of the date such amounts would otherwise be paid
to the Participant, excluding compensation earned when the Employee was not
eligible under Section 3.1 to become a Participant.  Such a one-time election may be made only
once per Plan Year and must be made in writing.

          

          Subject to the requirements of this Section 4.2, First Albany
Corporation or another Employer will make a Salary Reduction Contribution to
the Participant’s Salary Reduction Account on behalf of the Participant for
such Plan Year in an amount equal to the total amount by which the
Participant’s Compensation from an Employer was reduced during the Plan Year
pursuant to the salary reduction agreement and/or one-time election.

          Amounts
credited to a Participant’s Salary Reduction Account shall be 100% vested and
nonforfeitable at all times.  If a
Participant enters into a salary reduction agreement and/or one-time election
with an Employer for a given Plan Year, his Compensation for such Plan Year for
all other purposes of this Plan, shall be equal to his Compensation before
application of the salary reduction agreement.

          Further,
salary reduction agreements and one-time elections shall be governed by the
following:

                    (a)      A salary reduction
agreement shall apply to each payroll period during which an effective salary
reduction agreement or election is on file with an Employer.

                    (b)      A salary reduction agreement
or one-time election may be cancelled prospectively by a Participant at any
time during the Plan Year upon such reasonable advance notice as the Committee
may specify.

                    (c)      A salary reduction
agreement may be amended by a Participant if the purpose of the amendment is to
decrease or increase the amount of each Participant’s Compensation which is
subject to salary reduction during the remainder of such Plan Year.

                    (d)      To the extent that the
amount of the Salary Reduction Contribution elected in the one-time election
exceeds the amount of compensation that would otherwise be payable to the
Participant in such payroll period, the one-time election shall be applied to
subsequent payroll periods until the election is fully executed, subject to the
limitations of this Article IV.

                    (e)      Salary reduction
agreements and one-time elections or amendments to salary reduction agreements
shall be effective as of the payroll period following the first day of the next
calendar quarter (January 1, April 1, July 1 or October 1) following the date
such salary reduction agreement or one-time election or amendment to any salary
reduction agreement is executed by the Participant and an Employer, and shall
not apply to any payroll period preceding such salary reduction agreements or
one-time election or amendments or reinstatements.

          

                    (f)       An Employer, First
Albany Corporation or the Committee may amend or revoke a Participant’s
one-time election or may amend or revoke the Employer’s salary reduction
agreement with any Participant at any time, if First Albany Corporation or the
Committee determines that such revocation or amendment is necessary to ensure
that a Participant’s Additions for any Plan Year will not exceed the
limitations of Section 5.3 or to ensure that the discrimination tests of
Section 401(k) of the Code are met for such Plan Year and an Employer
shall amend or revoke any such election filed with it to the extent First
Albany Corporation or the Committee requests the Employer to so do because
First Albany Corporation or the Committee has determined that such revocation
is required for the Plan not to exceed the limitation of Section 5.3 or to
comply with the discrimination tests of Section 401(k) of the Code.

          Distributions
of a Participant’s Salary Reduction Contributions shall be made in accordance
with Article VI.

 
         Section 4.3   Limitation of Amount of Salary Reduction
Contributions.  (a)         For
Plan Years beginning on and after January 1, 2000, the amount of Salary
Reduction Contributions for a Participant shall be limited to $10,500 for the
taxable year, and as adjusted thereafter in accordance with
Section 402(g)(5) of the Code.  Any
Excess Deferral shall be distributed to the Participant in accordance with the
rules of subsection (b) hereof.

                    (b)      To the extent the
Participant has made Salary Reduction Contributions to the Plan in excess of
the amount set forth in subsection (a), such Excess Deferrals shall be
distributed to him no later than the 15th day of April following the end of the
taxable year during which such Salary Reduction Contributions are made.  No later than the first day of March
following the close of the taxable year during which the Excess Deferrals are
made, the Participant shall notify the Committee in writing of the amount of
the Excess Deferrals allocated to this Plan. 
Such amount shall then be distributed (including income thereon) to the
Participant no later than the following April 15th.

 

 
         Section 4.4   Rollover Amount From Other Plans.  An Employee eligible to participate in the
Plan, regardless of whether he has satisfied the participation requirements of
Section 3.1, may elect, subject to the approval of the Committee, to
rollover into the Trust Fund (either himself or in a trustee-to-trustee
transfer) a distribution of all or a portion of his interest in a qualified
retirement plan of a former employer. 
Such rollover must be made within the time limits prescribed by the
Code, and the Committee may obtain such assurances and certifications it may
deem necessary to establish that the rollover qualifies for rollover treatment
under the Code and will not adversely affect the qualification of the Plan
under Section 401(a) of the Code. 
If an eligible Employee had deposited a distribution previously received
from a qualified plan of a former employer into an Individual Retirement
Account (“IRA”), as defined in Section 408(d) of the Code, he may rollover
(either himself or in a trustee-to-trustee transfer) a distribution from such
IRA into the Trust Fund provided such rollover is made within the time limits
and otherwise satisfies the requirements prescribed by the Code and applicable
regulations of the Secretary of the Treasury. 
Any rollover contemplated by this Section 4.4 shall be credited to
a Rollover Account.  The Employee shall
be 100% vested in such Rollover Account, and it shall be invested in accordance
with Article 5 and distributed in accordance with Article 6.

 
         Section 4.5   Discriminatory Contributions.  (a)  Adjustments.  If First Albany Corporation or the Committee
shall determine that the Salary Reduction Contributions made on behalf of any
Participant or group of Participants might result in discrimination in
contributions in favor of Employees who are officers, certain shareholders or
Highly Compensated Employees or might cause the Plan to violate the
requirements of Sections 401(k) or 401(m) of the Code, First Albany Corporation
or the Committee shall have the right to cause such adjustments to be made on
behalf of such Participant or Participants as will, in First Albany Corporation’s
or the Committee’s opinion, avoid such discrimination and satisfy the
requirements of Sections 401(k) and/or 401(m) of the Code, as appropriate,
including, without limitation, the right to recharacterize Salary Reduction
Contributions as after-tax Employee contributions, refund Salary Reduction
Contributions and/or after-tax Employee contributions made on behalf of a
Participant or Participants and reduce or suspend the amount of future Salary
Reduction Contributions and/or after-tax Employee contributions previously
authorized by a Participant or Participants.

          For
purposes of this Section 4.5, the term Employee shall mean an employee of
any Employer and members of the Employer’s controlled group within the meaning
of Section 414(b), (c) or (m) of the Code, to the extent required under
Sections 401(k) or (m) of the Code.

                    (b)      Actual Deferral
Percentage.  (1)  For each Plan Year, the Actual Deferral
Percentage for the group of eligible Highly Compensated Employees shall bear a
relationship to the Actual Deferral Percentage for all other eligible Employees
that meets either of the following tests:

                    (i)       The Actual Deferral
Percentage for the group of eligible Highly Compensated Employees is not more
than the Actual Deferral Percentage of all other eligible Employees multiplied
by 1.25; or

                    (ii)      The
excess of the Actual Deferral Percentage for the group of eligible Highly
Compensated Employees over that of all other eligible Employees is not more
than 2 percentage points, and the Actual Deferral Percentage for the group of
eligible Highly Compensated Employees is not more than the Actual Deferral
Percentage of all other eligible Employees multiplied by 2.

                    (2)      For the purposes of
computing the Actual Deferral Percentages in Subsection (1) hereof, a Participant’s
compensation for a Plan Year means compensation as defined in
Section 414(s) of the Code.

                    (3)      For the purposes of
computing the Actual Deferral Percentages in subsection (1) hereof, Employer
contributions on behalf of any Participant shall include:

                    (i)       any
Employer contributions made pursuant to the Participant’s election; and

                    (ii)      at
the election of First Albany Corporation or the Committee, Qualified Employer
Matching Contributions and/or Qualified Nonelective Contributions.  Notwithstanding the above, Employer Matching
Contributions shall not be deemed Qualified Employer Matching Contributions
and/or Qualified Nonelective Contributions unless specifically elected by First
Albany Corporation or the Committee and, notwithstanding anything to the
contrary in the Plan, unless such contributions otherwise satisfy the
requirements of Section 1.401(k)-1(g)(13) of the Treasury regulations.

                    (4)      For purposes of applying
the provisions of subsection (1) hereof, the Actual Deferral Percentage taken into
account for any Highly Compensated Employee who participates in two or more
tax-qualified cash or deferred arrangements of an Employer shall be the sum of
the Actual Deferral Percentages for such Highly Compensated Employee under each
of such arrangements.

                    (5)      For Plan Years beginning
on and after January 1, 1997, the Committee shall use the Actual Deferral
Percentage for the preceding Plan Year of all eligible Employees other than
Highly Compensated Employees to determine the maximum Actual Deferral Percentage
for the current Plan Year for the eligible Highly Compensated Employees.

                    (6)      For purposes of this
Section 4.5(b), any Employee who is eligible to receive an Employer
Matching Contribution shall be considered an eligible Employee.

                    (7)      Except to the extent
otherwise provided in regulations or rules issued by the Secretary of the
Treasury, notwithstanding the distribution of any portion of an Excess Deferral
under Section 4.3 hereof, such portion shall, for purposes of applying
this Section 4.6 be treated as an Employer Contribution.

                    (8)      For purposes of this
Section 4.5(b) and Section 4.5(c) Employer shall include any entity that is a
member of the controlled group of which an Employer is a member within the
meaning of Sections 414(b), (c) or (m) of the Code and Employee and Highly
Compensated Employees shall include any Employee or Highly Compensated Employee
of any such Employer.

                    (c)      Actual Contribution
Percentage.  (1)  for each Plan Year, the Actual Contribution
Percentage for eligible Highly Compensated Employees shall not exceed the
greater of:

                    (i)       125
percent of the Actual Contribution Percentage for all other eligible Employees;
or

                    (ii)      The
lesser of 200 percent of the Actual Contribution Percentage for all other
eligible Employees, or the Actual Contribution Percentage for all other
eligible Employees plus 2 percentage points.

                    (2)      (i)  If two or more plans of employers to which
Employer Matching Contributions, after tax Employee contributions, or Salary
Reduction Contributions are made are treated as one plan for purposes of
Section 410(b) of the Code, such plans shall be treated as one plan and
(ii) if a Highly Compensated Employee participates in two or more employer
plans to which such contributions are made, all such contributions shall be
aggregated.

                    (3)      For purposes of this
Section 4.5(c), any Employee who is eligible to receive an Employer
Matching Contribution shall be considered an eligible Employee.

                    (4)      For the purposes of
computing the Actual Contribution Percentages in Subsection (1) hereof, a
Participant’s compensation for a Plan Year shall mean compensation as defined
in Section 414(s) of the Code.

                    (5)      For purposes of computing
the Actual Contribution Percentages, First Albany Corporation or the Committee
may elect to take into account elective deferrals as defined in
Section 402(g)(3) and/or Qualified Nonelective Contributions allocated to
a Participant’s Account under the Plan or any other plan of an Employer or a
member of its controlled group within the meaning of Code Section 414(b), (c)
or (m), provided that, notwithstanding anything in the Plan to the contrary,
such contributions so taken into account satisfy the requirements of
Section 1.401(m)-1(b)(5) of the Treasury Regulations.  Qualified Employer Matching Contributions,
however, may not be taken into account for purposes of computing the Actual
Contribution Percentages.

                    (6)      For Plan Years beginning
on and after January 1, 1997, the Committee shall use the Actual Contribution
Percentage for the preceding Plan Year of all eligible Employees other than
Highly Compensated Employees to determine the maximum Actual Contribution
Percentage for the current Plan Year for the eligible Highly Compensated
Employees.

                    (7)      The Plan shall be treated
as satisfying the requirements of Section 4.5(c)(1) hereof for any Plan
Year if, before the close of the following Plan Year the amount of Excess
Aggregate Contributions for such Plan Year (and any income allocable to such
Contributions) is distributed to the Participant.

                    (d)      Required Reduction for
Multiple Use of Alternative Limitation. 
Notwith­standing anything in this Plan to the contrary, the Plan will
comply with the requirements of Section 1.401(m)-2 of the Treasury
regulations to the extent applicable to prevent the multiple use of alternative
limitations.

          Section
4.6   Contributions After Qualified Military
Service Period.  Notwithstanding any Plan provision to the
contrary, a Participant who is reemployed after a Qualified Military Service
Period, as defined herein, shall be eligible to make additional Salary
Reduction Contributions and After-Tax Employee Contributions for any Plan Year
or portion thereof that coincides with such Qualified Military Service Period,
provided that he would have been entitled to make such Contributions under the
terms of the Plan as in effect during his period of Qualified Military Service
and that any such contributions are made during a period that begins on the
Participant’s date of reemployment and ends on the earlier of (a) five (5)
years thereafter or (b) the expiration of a period whose duration is three
times the duration of the Qualified Military Service Period.  To the extent a Participant is qualified to
make After–Tax Contributions, any After-Tax Contributions made pursuant to
this Section 4.6 shall be governed by the provision of the Plan as amended
effective July 15, 1993 (“1993 Plan”) to the extent not otherwise provided for
in this restatement.

          The
maximum amount of such Salary Reduction Contributions may not exceed the amount
that the Participant would have been permitted to make under Sections 4.2 and
4.5 had he remained in employment during such Qualified Military Service
Period.  The maximum amount of such
After-Tax Employee Contribution may not exceed the amount that the Participant
would have been permitted to make under Sections 4.6 and 4.7 of the 1993 Plan
had he remained in employment during such Qualified Military Service
Period.  Notwithstanding anything in
this Section 4.6 to the contrary, no Participant shall be permitted to
make After–Tax Employee Contributions to the Plan for periods of
Qualified Military Service that occurred after the Restatement Effective
Date.  For computing the amount of such
Salary Reduction Contributions and After-Tax Employee Contributions, a
Participant’s Compensation during such Qualified Military Service Period shall
be deemed to be equal to the Compensation that he would have received during
such Period (under the applicable version of the Plan) or, if this is
uncertain, his average Compensation (under the applicable version of the Plan)
during the twelve-month period immediately preceding such Period.

          Such
Participant shall also be entitled to Employer Matching Contributions for such
Period to the extent such Participant makes the Salary Reduction Contributions
or After-Tax Employee Contributions upon which such Employer Matching
Contributions are contingent.  Such
Participant shall also be entitled to receive any Employer Additional Contributions
that he would have received had he remained employed with the Employer during
such Period.

          

No earnings shall be credited on any
contribution made under this Section 4.6 for any period before such
contribution is actually made.  All
contributions made under this Section 4.6 shall be subject to all other
applicable limitations under Section 401(a)(4), 401(k), 401(m), 402(g),
404(a) or 415 of the Code only for the Plan Year in which such contributions
are credited.

          The
Plan Administrator may set reasonable limits on the timing and manner in which
such Participant may actually make such contributions.  The Plan Administrator will allow such
Participant to direct the investment of such contributions as provided in
Section 5.2 herein.

          Under
this Section 4.6 a Qualified Military Service Period shall mean any time
period of service in the uniformed services of the United States by a
Participant who is later reemployed by the Employer on or after December 12,
1994 pursuant to the Uniformed Services Employment and Reemployment Rights Act
of 1994.

ARTICLE V

ALLOCATIONS TO PARTICIPANTS’ ACCOUNTS

 
         Section 5.1   Individual Accounts.  The Committee shall create and maintain
adequate records to disclose the interest in the Trust of each Participant,
Former Participant and Beneficiary. 
Such records shall be in the form of individual accounts, and credits
and charges shall be made to such accounts in the manner herein described.  When appropriate, a Participant shall have
six (6) separate accounts: an Employer Additional Account, an Employer Matching
Account, a Salary Reduction Account, an Employee Contribution Account, a
Rollover Account and a Loan Account. 
The maintenance of individual accounts is only for accounting purposes,
and a segregation of the assets of the Trust Fund to each account shall not be
required.  Distributions and withdrawals
made from an account shall be charged to the account as of the date paid.

 
         Section 5.2   Account Adjustment.  The accounts of Participants, Former
Participants and Beneficiaries shall be adjusted in accordance with the
following:

                    (a)      Income.  On the Valuation Date of each Plan Year and
on such additional dates as the Administrative Committee or the Trustee may
deem advisable, a valuation shall be made of each Participant’s and Former
Participant’s Accounts, which valuation shall reflect the fair market value of
such Accounts including any earnings and losses thereon.

                    (b)      Salary Reduction
Contributions.  Employer
contributions for a Plan Year made pursuant to a salary reduction agreement or
one-time election entered into with a Participant under Section 4.2 for
such Plan Year shall be allocated to the Participant’s Salary Reduction Account
on the earliest date on which such allocation is reasonably practicable, but in
no event later than the fifteenth (15th) business day of the month
following the month in which such amount would otherwise be paid as part of the
Participant’s Compensation.

                    (c)      Employer Matching
Contributions.  Employer Matching
Contributions shall be allocated as soon as reasonably practicable after the
end of the Plan Year among the Employer Matching Accounts of those Participants
who entered into a salary reduction agreement and who are credited with at
least 1,000 Hours of Service during the Plan Year, and except as otherwise
required pursuant to Section 4.1(b), 6.1 or 6.2, are in the active employ of an
Employer on the last day of the Plan Year.

                    (d)      Employer Additional
Contributions.  Employer Additional
Contributions shall be allocated as soon as reasonably practicable after the
end of the Plan Year among the Employer Additional Accounts of those
Participants whose Compensation does not include sales commissions in excess of
50% of their Compensation, who are not considered Highly Compensated Employees
who are credited with at least 1,000 Hours of Service during the Plan Year and,
except as required pursuant to Section 6.1 or 6.2, are in the active employ of
an Employer on the last day of the Plan Year. 
Such amounts shall be allocated according to the ratio that each such
Participant’s Compensation for the Plan Year bears to the total Compensation of
all such eligible Participants for the Plan Year.

                    (e)      Investment Choices of
Participants.  (i)  Except as provided in (ii) below, each
Participant who has one or more accounts shall direct, at the time he elects to
make contributions, how such contributions are to be invested pursuant to his
self-direction.

                    (ii)      Employer
Additional Contributions and Employer Matching Contributions made on behalf of
a Participant to the Plan that are made in cash, shall be invested pursuant to
a Participant’s self-direction. 
Employer Matching Contributions and/or Employer Additional
Contributions, made in the form of the Common Stock, may be sold and reinvested
at the Participant’s direction to the extent of the Participant’s vested
interest in his Employer Matching Account or Additional Contribution Account,
as applicable.

                    (iii)     Dividends
and other distributions received by the Trustee with respect to a given
investment shall be invested pursuant to a Participant’s direction to the
extent the Participant is authorized to direct the investment yielding the
distribution pursuant to this Section 5.2(e).

          

                    (iv)     Any
investment direction given by a Participant shall continue in effect until
changed by the Participant.  A
Participant may change his investment direction as to future contributions and
as to current investments of his accounts and may change the investments in his
accounts, subject to the limitations of paragraph (ii) of this subsection (e),
at any time and as often as he desires by notice to the person designated by
Committee or to the extent the Committee has delegated such authority to the
Participant from the person selected by the Participant from time to time.

                    (v)      To
the extent permitted under ERISA, the Participant may direct that all or any
portion of the contributions to his accounts over which he has the power to
direct investment pursuant to this Section 5.2(e), and all of any portion
of the earnings thereon, be invested in stock or marketable obligations of the
Employer.  The Participant may not
direct that any portion of the contributions to his accounts or any portion of
the earnings thereon be invested in real property other than limited
partnerships.

 
         Section 5.3   Maximum Additions.  Notwithstanding anything contained herein to
the contrary, the total Additions made to the Salary Reduction Account, the
Employer Additional Account, and the Employer Matching Account of a Participant
for any Plan Year shall not exceed the lesser of $30,000, subject to periodic
adjustment of the “defined contribution dollar limitation” under
Section 415(d) of the Code, or 25% of the Participant’s Code
Section 415 Compensation.

          

Notwithstanding the foregoing, the
otherwise permissible annual Additions for any Participant under this Plan may
be further reduced to the extent necessary, as determined by the Committee, to
prevent disqualification of the Plan under Section 415 of the Code, which
imposes the following additional limitations on the benefits payable to Participants
who also may be participating in another tax qualified pension, profit sharing,
savings or stock bonus plan maintained by the Employer or any of the members of
the controlled group of which the Employer is a part:  (i) for Plan Years beginning before January 1, 2000, if an
individual is a Participant at any time in both a defined benefit plan and a
defined contribution plan maintained by an employer, the sum of the defined
benefit plan fraction and the defined contribution plan fraction for any Plan
Year may not exceed 1.0.  The defined
benefit plan fraction for any Plan Year is a fraction, the numerator of which
is the Participant’s projected annual benefit under the Plan (determined at the
close of the Plan Year) and the denominator of which is the lesser of 1.25
multiplied by $90,000 or such greater amount permitted by Internal Revenue
Service regulations to reflect cost-of-living adjustments; or 1.4 multiplied by
100% of the Participant’s average Code Section 415 Compensation
during the three (3) consecutive years when the total Code
Section 415 Compensation paid to him was highest.  The defined contribution plan fraction for
any Plan Year is a fraction, the numerator of which is the sum of the annual
Additions to the Participant’s accounts in such Plan year and for all prior
Plan Years and the denominator of which is the sum of the applicable maximum
amounts of annual Additions which could have been made under
Section 415(c) of the Code for such Plan year and for all prior years of
such Participant’s employment (assuming for this purpose, that
Section 415(c) had been in effect during such prior years).  The applicable maximum amount for any Plan
Year shall be equal to the lesser of 1.25 multiplied by the dollar limitation
in effect for such Plan Year under Subsection 415(c)(1)(A) of the Code or 1.4
multiplied by 25% of the Participant’s Code Section 415 Compensation
for such Plan Year.  At the election of
the Committee, special transitional rules may apply for both the defined
benefit fraction and the defined contribution fraction for Employees who were
Participants as of December 31, 1982. 
For purposes of this limitation, all defined benefit plans of the
Employer, whether or not terminated, are to be treated as one defined benefit
plan and all defined contribution Plans of the Employer, whether or not
terminated, are to be treated as one defined contribution plan.  The extent to which annual Additions under
the Plan shall be reduced as compared with the extent to which the annual
benefit under any of the plans shall be reduced in order to achieve compliance
with the limitations of Section 415 of the Code shall be determined by the
Administrator in such a manner so as to maximize the aggregate benefits payable
to such Participant.  If such reduction
is under this Plan, the Committee shall advise affected Participants of any
additional limitation on their annual benefits required by this paragraph.  For Plan Years beginning on or after January
1, 2000, annual Additions will not be reduced pursuant to this subparagraph (i)
of this Section 5.3.

          Any
amounts which are in excess of the maximum annual Additions allowable in this
Section 5.3 shall be corrected in the manner and order as set forth below
as necessary:

                    (a)      the excess will be held
in a suspense account for the Participant and will be allocated to his account
in the following year; and

                    (b)      the excess will be held
in a suspense account and will be reallocated to all Participants in the
following year as a reduction of Employer Contributions; and

                    (c)      the excess will be
reallocated to other Participants in the current Plan Year, or if all
Participants have reached their limitations under Section 415 of the Code,
and an excess still remains, the excess shall be held in a suspense account and
will be reallocated in the following year prior to any Employer Contributions.

          The
above limitations are intended to comply with the provisions of
Section 415 of the Code and regulations thereunder.  If there is any discrepancy between the
provisions of this Section 5.3 and the provisions of Section 415 of
the Code and regulations thereunder, such discrepancy shall be resolved in such
a way as to give full effect to the provisions of Section 415 of the
Code.  The combined limits under
Section 415(e) of the Code shall not apply to the Plan for Plan Years
beginning on or after January 1, 2000.

ARTICLE VI

BENEFITS

 
         Section 6.1   Retirement or Disability.  If a Participant’s employment is terminated
at or after he attains age sixty-five (65) or at an earlier age because of
Disability, he shall be fully vested in, and entitled to receive, the amount in
each of his Accounts.  If the
Participant is credited with at least 1,000 Hours of Service during the Plan
Year in which the Participant retires or terminates employment because of
Disability, the “amount” in such Participant’s accounts shall include any
Salary Reduction Contributions, Employer Additional Contributions and Employer
Matching Contributions made with respect to the Plan Year in which the
Participant terminated employment after attaining age sixty-five (65) or on
account of Disability even if the Participant is not employed on the last day
of such Plan Year.

          Payments
of benefits due under this Section 6.1 shall be made in accordance with
Section 6.4.

 
         Section 6.2   Death.  In the event that the termination of
employment of a Participant is caused by his death, his Beneficiary shall be
fully vested in and paid the amount in each of his Accounts.  If the Participant is credited with at least
1,000 Hours of Service during the Plan Year in which the Participant dies, the
“amount” in such Participant’s accounts shall include any Salary Reduction
Contributions, Employer Additional Contributions and Employer Matching
Contributions made with respect to the Plan Year in which the Participant died
even if the Participant is not employed on the last day of such Plan Year.

          Payments
of benefits due under this Section 6.2 shall be made in accordance with
Section 6.4.

 
         Section 6.3   Termination for Other Reasons.  If a Participant’s employment is terminated
before age sixty-five (65) for any reason other than retirement at or after age
sixty-five, Disability or death, the Participant shall be entitled to:

                    (a)      The entire amount
credited to his Rollover Account, if any, plus

                    (b)      The entire amount
credited to his Salary Reduction Account, including any Salary Reduction
Contributions made with respect to the Plan Year of termination but allocated
after the date of the Participant’s termination, plus

                    (c)      The entire amount
credited to his Employee Contribution Account, if any, plus

                    (d)      The entire amount
credited to his Employer Additional Account, if any, and his vested percentage
(determined in accordance with Section 4.1(b) or as otherwise required by
Section 1.401(k)-1(g)(13)) of the Treasury regulations) of the amount
credited to his Employer Matching Account, if any, including any Employer
Additional Contributions and his vested percentage of any Employer Matching
Contribution made with respect to the Plan Year of termination (pursuant to
Section 4.1) but allocated after the date of the Participant’s termination, if
the Participant was credited with 1,000 Hours of Service during the Plan Year
with respect to which the Employer Additional Contribution or Employer Matching
Contribution is made and was employed on the last day of such Plan Year or the
Participant is otherwise entitled to receive any such Employer Matching
Contribution pursuant to Section 4.1(b).

          A
Participant whose employment is terminated under this Section 6.3 shall forfeit
the balance in his Employer Matching Account that has not vested in accordance
with Section 4.1(b), provided that (i) upon his reemployment by the
Employer prior to five (5) consecutive One-Year Breaks-in-Service if he has not
received a distribution of his Employer Matching Account, or (ii) upon
repayment of the distribution if he has received distribution of the vested
portion of the balance of his Employer Matching Account, the forfeited amounts
(unadjusted for gains or losses subsequent to his date of termination) shall be
restored to his Employer Matching Account. 
For the restoration described in clause (ii) of the foregoing sentence
to become effective, repayment of a distribution must occur prior to the
earlier of five (5) years after the first date on which the Participant is
subsequently reemployed by the Company or the date the Participant incurs five
(5) consecutive One-Year Breaks-in-Service following the date of
distribution.  To the extent a
restoration occurs with respect to amounts credited to the Participant’s
Employer Matching Account that when forfeited were in the form of Common Stock,
such restoration shall be made to the Participant’s Employer Matching Account
in the form of Common Stock.

          

Amounts that are forfeited pursuant to
this Section 6.3 shall be used to pay reasonable expenses of the Plan or
to reduce the future contributions of First Albany Corporation or any other
Employer to the Plan.  Employer Matching
Contributions forfeited by any Participant who does not have any vested
interest in his Employer Matching Account at the time of forfeiture shall be
deemed distributed to the Participant. 
In the case of a Participant who repays his Plan distribution in
accordance with this Section 6.3, such forfeited amounts shall be deemed
repaid to the Plan.

          Payment
of benefits under this Section 6.3 shall be made in accordance with Section
6.4.

          Section 6.4   <
u>Payment of Benefits.  Upon a Participant’s entitlement to payments
of benefits under either Section 6.1 or Section 6.3, he shall file
with the Committee his written election on such form or forms, and subject to
such conditions, as the Committee shall provide.  His election shall specify (1) the date he elects for
commencement of benefit payments which may be as of the date of his entitlement
to benefits or may be a date deferred to the extent provided below and (2) his
selection of the method of payment of his benefits from the two allowable
methods provided below.

          The
Committee shall follow a Participant’s Beneficiary designation under
Section 6.5 and shall follow the method of payment, if any, selected by
the Participant in the case of a distribution on account of the Participant’s
death.  If the Participant fails to
select a method of payment for his Beneficiary, the Beneficiary shall have the
right to elect one of the methods of payment of his benefits provided for in
this Section 6.4.  Payments to a
Participant’s Beneficiary shall be made or commence as soon as practicable after
a Participant’s or Former Participant’s death.

          Unless
a Participant elects otherwise and subject to Section 6.5 herein, payment
of a Participant’s benefits under this Plan shall be made or commence no later
than the sixtieth (60th) day after the later of (a) the end of the
Plan Year of his sixty-fifth (65th) birthday, or (b) the end of the
Plan Year in which his employment terminates.

          A
Participant or Beneficiary may elect that amounts from his accounts be paid in
either one of the following methods:

                    (a)      A lump sum, or

                    (b)      Periodic payments of substantially
equal amounts for a specified number of years of not less than two (2) years
nor more than five (5) years, in which event the unpaid balance at the end of
each Plan Year shall be adjusted to reflect the earnings and losses for that
Plan Year.  Such periodic payments shall
be made not less frequently than annually.

          Notwithstanding the foregoing, a
Participant or Beneficiary may not elect that amounts due from or in respect of
the Participant’s Accounts be paid in any form other than a lump sum if
the first date of the first period for which such amounts are payable is on or
after the earlier of (i) the 90th day after the date the Participant
has been furnished a summary that reflects the amendment of the Plan to
eliminate the opportunity to elect periodic payments of benefits from the
Participant’s Accounts, or (ii) the first day of the second Plan Year following
the Plan Year in which such amendment is made.

          The
amount which a Participant, Former Participant or Beneficiary is entitled to
receive at any time and from time to time may be paid at the Committee’s
discretion in cash or in securities, or in any combination thereof.

          Notwithstanding
any other provision of this Article 6, the Committee may distribute the entire
value of a Participant’s Accounts upon or at any time after the termination of
employment of a Participant if the total vested balance of his Accounts does
not exceed (and has not exceeded at the time benefit payments commenced under
the Plan) $5,000 ($3,500 prior to August 5, 1997).

          Notwithstanding
the foregoing, no distribution may commence without the consent of the
Participant or Former Participant if the aggregate vested balance of his
Accounts exceeds $5,000 ($3,500 prior to August 5, 1997) and the
Participant or Former Participant has not yet reached the later of his 65th
birthday or when his employment terminates. 
No consent shall be valid unless the Participant has received a general
description of the material features of the distribution and an explanation of
the optional forms of benefit under the Plan and has been informed of his right
to defer receipt of such distribution. 
Such notice must be provided no later than thirty (30) days or sooner
than ninety (90) days before the first day on which all events have occurred
that entitle the Participant or Former Participant to such distribution,
provided, however, that such distribution may commence sooner than thirty (30)
days after such notice is given if the Plan Administrator clearly informs the
Participant or Former Participant that the Participant or Former Participant
has the right to a period of at least thirty (30) days after receipt of such
notice to consider the decision and the Participant elects to receive such
distribution after receipt of such notice.

          Notwithstanding
any provision of this Plan to the contrary, if on or after January 1, 1993 (i)
a Participant, (ii) a Beneficiary who is a Spouse, or (iii) a Spouse or former
Spouse who is an Alternate Payee under a qualified domestic relations order, as
defined in Section 414(p) of the Code becomes entitled to a distribution
from the Plan which qualifies as an “eligible rollover distribution” as defined
in Section 402(f)(2)(A) of the Code, such individual may elect to have all
or a portion of such distribution paid or transferred directly to a designated
“eligible retirement plan” as defined in Section 402(c)(8)(B) of the Code,
provided that such retirement plan to which such transfer is to be made permits
the transfer.  The Committee may
establish reasonable rules and procedures regarding a direct rollover
distribution permitted under this paragraph.

 
         Section 6.5   Designation of Beneficiary.  Each Participant or Former Participant from
time to time may designate any person or persons (who may be designated contingently
or successively and who may be an entity other than a natural person) as his
Beneficiary or Beneficiaries to whom his Plan benefits are paid if he dies
before receipt of all such benefits. 
Each Beneficiary designation shall be in the form prescribed by the
Committee, will be effective only when filed with the Committee during the
Participant’s lifetime, and, if the Committee allows and subject to Section
6.4, may specify the method of payment of his benefits to the Beneficiary.  Each Beneficiary designation filed with the
Committee will cancel all Beneficiary designations filed with the
Committee.  Except in the case where the
spouse is the named Beneficiary, which cannot be modified without the consent
of the spouse, as discussed below, the revocation of a Beneficiary designation
no matter how effective, shall not require the consent of any designated
Beneficiary.

          An
election made pursuant to this Section 6.5 shall not take effect unless:

                    (a)      The spouse of the
Participant consents in writing to such election, and the spouse’s consent
acknowledges the effect of such election and is witnessed by a Plan
representative or a notary public, or because of such other circumstances as
the Secretary of the Treasury may by regulations prescribe; or

                    (b)      It is established to the
satisfaction of a Plan representative that the Participant has no spouse, the
spouse cannot be located, the Participant is legally separated or has been
abandoned as defined by local law and the Participant has a court order to such
effect (and no qualified domestic relations order as defined in
Section 414(p) of the Code exists that provides otherwise), or such other
circumstances as the Secretary of the Treasury may by regulations prescribe.

          Any
consent by a spouse (or establishment that the consent of a spouse cannot be
obtained) under the preceding sentence shall be effective only with respect to
such spouse.

                    (c)      If any Participant or
Former Participant fails to designate a Beneficiary in the manner provided
above, or if the Beneficiary designated by a deceased Participant dies before
him or before complete distribution of the Participant’s benefits, the
Committee shall direct the Trustee to distribute such Participant’s benefits
(or the balance thereof) in the following priority (each class to take to the
exclusion of the other):

                  (i)       Surviving
spouse.

                  (ii)      Lineal
descendants, per stirpes, equally.

                  (iii)     Surviving
parents equally.

                  (iv)     Participant’s
other distributees.

          If
the Beneficiary dies before the complete distribution of the Participant’s
benefits, then payment is made to the Beneficiary’s distributees.

 
         Section 6.6   Qualified Domestic Relations Order.  (a)         Notwithstanding
anything herein to the contrary, benefits may be paid in accordance with the
applicable requirements of any domestic relations order determined by the
Administrator to be a qualified domestic relations order within the meaning of
Section 414(p) of the Code.

                    (b)      (i)       In the event the Plan receives a domesti
c
relations order intended to be a qualified domestic relations order within the
meaning of Section 414(p) of the Code, the Administrator shall act on such
order as follows:

                    (A)     The
Administrator shall promptly notify the Participant and each Alternate Payee
specified in the order as entitled to payment of benefits under the Plan (at
the address specified in the order) of the receipt of such order and provide
all such parties with a copy of these Plan procedures for determining the
qualified status of domestic relations orders, and

                    (B)     Within
a reasonable period after receipt of such order, the Administrator (with or
without the assistance of counsel or any other advisor as the Administrator in
its sole discretion shall determine to consult) shall determine whether such
order is a qualified domestic relations order that satisfies the requirements
of Section 414(p) of the Code and notify the Participant and each Alternate
Payee of such determination.

                    (ii)      The
Administrator shall establish reasonable procedures to determine the qualified
status of domestic relations orders and to administer distributions under such
qualified orders.

                    (A)     Such
procedures shall be in writing.

                    (B)     Such
procedures shall provide for the notification of each person specified in a
domestic relations order as entitled to payment of benefits under the Plan (at
the address included in the domestic relations order) of such procedures
promptly upon receipt by the Plan of the domestic relations order.

                    (C)     The
Administrator shall permit an Alternate Payee to designate a representative for
receipt of copies of notices that are sent to the Alternate Payee with respect
to a domestic relations order.

                    (D)     (I)      During any period in which the issue of
whether a domestic relations order is being determined (by the Administrator,
by a court of competent jurisdiction, or otherwise), the Administrator shall
separately account for the amounts which would have been payable to the
Alternate Payee during such period if the order had been determined to be a
qualified domestic relations order within the meaning of Section 414(p) of the
Code.

          (II)     If within the eighteen-month period
beginning on the date on which the first payment would be required to be made
under the domestic relations order the order (or notification thereof) is
determined to be a qualified domestic relations order within the meaning of
Section 414(p) of the Code, the Administrator shall pay the segregated amounts
(plus any interest thereon) to the person or persons entitled thereto.

          (III)    If
within the eighteen-month period beginning on the date on which the first
payment would be required to be made under the domestic relations order (i) it
is determined that the order is not a qualified domestic relations order within
the meaning of Section 414(p) of the Code, or (ii) the issue as to whether such
order is a qualified domestic relations order within the meaning of Section
414(p) of the Code is not resolved, then the Administrator shall pay the
segregated amounts (plus any interest thereon) to the person or persons who
would have been entitled to such amount if there had been no order.

          (IV)    Any
determination that an order is a qualified domestic relations order within the
meaning of Section 414(p) of the Code which is made after the close of the
eighteen-month period beginning on the date on which the first payment would be
required to be made under the domestic relations order shall be applied
prospectively only.

                    (c)      If the Administrator acts
in accordance with part 4 of title I of ERISA in:

                    (i)       Treating
a domestic relations order as being (or not being) a qualified domestic
relations order within the meaning of Section 414(p) of the Code, or

                    (ii)      Taking
action under Subparagraph (D) of Paragraph (ii) or
Subsection (b) herein, then the Plan’s obligation to the Participant and
each Alternate Payee shall be discharged to the extent of any payment made
pursuant to such act.

                    (d)      A person who is an
Alternate Payee under a qualified domestic relations order within the meaning
of Section 414(p) of the Code shall be considered for purposes of any
provisions of ERISA a Beneficiary under the Plan.

                    (e)      The term “Alternate
Payee” means any spouse, former spouse, child, or dependent of a Participant
who is recognized by a domestic relations order as having a right to receive
all, or a portion of, the benefits payable under this Plan with respect to such
Participant.

          Notwithstanding
anything in the Plan to the contrary, distribution to Alternate Payees shall be
permitted to the extent authorized by a “qualified domestic relations order,”
even if the affected Participant has not separated from service and has not
reached the “earliest retirement age” under the Plan

 
         Section 6.7   Required Distributions.  (a) 
The entire interest of each Participant:

                    (i)       Will
be distributed to such Participant not later than the Required Beginning Date,
as defined in Section 6.7(c), or

                    (ii)      Will
be distributed in accordance with regulations, over the life of such
Participant or over the lives of such Participant and a Designated Beneficiary
(or over a period not extending beyond the life expectancy of such Participant
and Designated Beneficiary).  The first
payment shall be distributed no later than the Required Beginning Date; the
second payment shall be distributed no later than December 31 of the same
calendar year.  Each succeeding payment
shall be distributed no later than each December 31 thereafter.  Distributions shall be made in accordance
with Section 401(a)(9) of the Code and the regulations thereunder.

                    (b)      (i)       Required distribution where the
Participant dies before his entire interest is distributed:

If the
distribution of the Participant’s interest has begun in accordance with
Section 6.7(a)(ii), and the Participant dies before his entire interest
had been distributed to him, the remaining portion of such interest will be
distributed at least as rapidly as under the method of distribution being used
under Section 6.7(a)(ii) as of the date of his death.

                    (ii)      Five-Year
rule for other cases.  If a Participant
dies before the distribution of the Participant’s interest has begun in
accordance with Section 6.7(a)(ii), the entire interest of the Participant
will be distributed within five (5) years after the death of such Participant.

                    (c)      Required Beginning
Date.  For Participants who attain age
701⁄2 after December 31, 1996, “Required Beginning Date” means the April 1
immediately following the calendar year in which occurs the later of (i) the
date of a Participant’s severance or (ii) attainment of age 701⁄2, provided,
however, that “Required Beginning Date” means the April 1 immediately following
the end of the calendar year in which the Participant attains age 701⁄2 if the
Participant is a 5% owner as defined in Section 416(i) of the Code.  For Participants who attain age 701⁄2 prior to
December 31, 1996, “Required Distribution Date” means the April 1 immediately
following the calendar year in which the Participant attains age 701⁄2.

                    (d)      Designated Beneficiary.  The term “Designated
Beneficiary” means any
individual designated as a Beneficiary by the Participant.

          

                    (e)      Treatment
of Payments to Children.  Under
regulations prescribed by the Secretary of the Treasury, any amount paid to a
child shall be treated as if it has been paid to the surviving spouse if such
amount will become payable to the surviving spouse upon such child reaching
majority (or other designated event permitted under regulations).

ARTICLE VII

TOP-HEAVY PROVISIONS

 
         Section 7.1   Top-Heavy Provisions.  The following provisions shall become
effective in any Plan Year in which the Plan is determined to be a top-heavy
plan (within the meaning of Section 416(g) of the Code, hereinafter
referred to in this Section as a “Top–Heavy Plan”).  For purposes of this Article, the term
Employer shall include members of the Employer’s controlled group within the
meaning of Code Section 414(b), (c) or (m) and Employee shall mean any employee
of any such Employer to the extent required under Section 416 of the Code.

                    (a)      Determination of
Top-Heavy.  The Plan will be
considered a Top-Heavy Plan for the Plan Year if, as of the “Determination
Date”, (1) the aggregate present value of the Code Section 416 Accounts
(but not including any allocations to be made as of such Determination Date
except contributions actually made on or before that date and allocated
pursuant to Section 5.2) of Participants who are Key Employees exceeds 60%
of the aggregate present value of the Code Section 416 Accounts (but not
including any allocations to be made as of such Determination Date except
Contributions actually made on or before that date and allocated pursuant to
Section 5.2) of all Participants (the “60% Test”), or (2) the Plan is part
of a required aggregation group (within the meaning of Section 416(g) of
the Code and as described in Section 7.1(h)) and the required aggregation
group is a top heavy group (within the meaning of Section 416(g)(2)(B) of
the Code.  However, and notwithstanding
the results of the 60% Test, the Plan shall not be considered a Top-Heavy Plan
for any Plan Year in which the Plan is a part of a required or permissive
aggregation group (within the meaning of Section 416(g) of the Code and as
described in Section 7.1(i)) that is not a Top-Heavy Group.

          For
the purpose of making the “60% Test” as of any Determination Date,

                    (i)       If
any Employee is a Non-Key Employee under any plan for any Plan Year, but such
Employee was a Key Employee under such plan for any prior Plan Year, the value
of such Employee’s Accounts will not be taken into account;

                    (ii)      The
value of the Accounts shall exclude the value of the Code Section 416
Accounts of any individual who has not performed services for the Employer at
any time during the five (5)-year period ending on the Determination Date; and

                    (iii)     The value of the Code
Section 416 Accounts shall include all distributions made to the Employee
under the Plan during the five (5)-year period ending on the Determination
Date.

“Determination Date” means, with respect to
any Plan Year (i) the last day of the preceding Plan Year, or (ii) in the case
of the first Plan Year, the last day of such Plan Year.  “Code Section 416 Accounts” means
Employer Contribution Accounts and Employee Contribution Accounts.

                    (b)      Minimum Allocations.  Notwithstanding the provisions of
Section 5.2, for any Plan Year during which the Plan is deemed a Top-Heavy
Plan, the Employer Contribution for such Plan Year shall be allocated as
follows:

                    (i)       The
sum of Employer Matching Contributions, Employer Additional Contributions and
forfeitures for the Plan Year for each Participant who is a Non-Key Employee
will not be less than 3% of such Participant’s Code
Section 415 Compensation.

                    (ii)      Notwithstanding
the foregoing percentage, if the Employer Contributions for any Plan Year for
each Key Employee do not exceed 3% of such Key Employee’s Code Section 415 Compensation,
then the percentage referred to in Section 7.1(b)(i) for such Plan Year
shall not exceed the percentage at which contributions are made (or required to
be made) under the Plan for the Plan Year for the Key Employee for whom such
percentage is the highest for the Plan Year.

                    (iii)     This
percentage shall be determined for each Key Employee by dividing the
contributions for such Employee by so much of his total Code Section 415
Compensation for the Plan Year as does not exceed the dollar limitation in
effect under Section 401(a)(17) of the Code ($170,000 for Plan Years
beginning on or after January 1, 2000, or such other amount as the Secretary of
the Treasury shall determine from time to time).  The minimum allocations shall be allocated to the accounts of all
Non-Key Employees who are participating and are employed by an Employer on the
last day of the Plan Year, including Non-Key Employees who have failed to
complete 1,000 Hours of Service.

                    (c)      Minimum Vesting.  If a Participant’s termination of employment
occurs while the Plan is a Top-Heavy Plan, such Participant’s vested percentage
in his Employer Matching Account and Employer Additional Account shall not be
less than required under Code Section 416 (b)(1)(B).

                    (d)      Compensation.  For any Plan Year in which the Plan is a Top–
Heavy
Plan, effective in Plan Years beginning on or after January 1, 1994, the
annual 415 Compensation of each Participant taken into account under this Plan
shall not exceed the first dollar amount of the limitation in effect under
Section 401(a)(17) of the Code ($170,000 for Plan Years beginning on or after
January 1, 2000, or such other amount as the Secretary of the Treasury shall
determine from time to time).

                    (e)      Change in Top-Heavy
Status.  If the Plan becomes a
Top-Heavy Plan and subsequently ceases to be such, the vesting schedule in
Section 7.1(c) shall continue to apply in determining the vested
percentage of any Participant who had at least five (5) years of Service as of
December 31 of the last Plan Year when the Plan was Top-Heavy.  For other Participants, said schedule shall
apply only to their Employer Matching Account and Employer Additional Account
balances as of December 31 of the last year the Plan was Top-Heavy.

                    (f)       Impact on Maximum
Benefits.  For any Plan Year in
which the Plan is a Top-Heavy Plan, Section 5.3 shall be read by
substituting the number “1.00” for the number “1.25” wherever it appears
therein except such substitution shall not have the effect of reducing any
benefit accrued as of the date on which this provision becomes applicable.  For Plan Years beginning on or after the
Restatement Effective Date, this provision will not apply.

                    (g)      The Term “Required
Aggregation Group” means.  (1) Each
plan of an Employer in which a Key Employee is a participant, and (2) each
other plan of an Employer which enables any plan described in subclause (1) to
meet the requirements of Section 401(a)(4) or 410 of the Code.

                    (h)      Permissive Aggregation.  An Employer may treat any plan not
required to
be included in an aggregation group as being part of such group if such group
would continue to meet the requirements of Sections 401(a)(4) and 410 of the
Code with such plan being taken into account.

                    (i)       Key Employee.

                    A)      The
term “Key Employee” means any Employee in an Employer plan who, at any time
during the Plan Year or any of the four (4) preceding Plan Years, is:

                              (1)      An
officer of the Employer, having an annual compensation (within the meaning of
Code Section 414(q)(5)) greater than 150% of the amount in effect under
Section 415(c)(1)(A) of the Code for any such Plan Year,

                              (2)      One of the ten
Employees
having annual compensation (within the meaning of Code Section 414(q)(5))
from the Employer of more than the limitation in effect under Code
Section 415(c)(1)(A) and owning (or considered as owning within the
meaning of Code Section 318 ) both more than a 1/2% interest and the
largest interest in the Employer,

                              (3)      A
Five-Percent Owner of the Employer, or

                              (4)      A
One-Percent Owner of the Employer having annual compensation (within the
meaning of Code Section 414(q)) from the Employer for a Plan Year of more
than $150,000.

          For
purposes of Section 7.1(i)(A)(i), no more than fifty (50) Employees (or,
if lesser, the greater of three (3) Employees or 10% of the Employees) shall be
treated as officers.

                    (B)     (i)       For purposes of this paragraph, the term
“Five-Percent Owner” means:

          (a)      If
the Employer is a corporation, any person who owns (or is considered as owning
within the meaning of Code Section 318) more than 5% of the outstanding
stock of the corporation or stock possessing more than 5% of the total combined
voting power of all stock of the corporation, or

          (b)      If
the Employer is not a corporation, any person who owns more than 5% of the capital
or profits interest in the Employer.

          (ii)      For
purposes of this paragraph, the term “One-Percent Owner” means any person who
would be described in Section 7.1(i)(B)(i) if  “One-Percent” were substituted for “Five-Percent” each place it
appears in Section 7.1(h)(B)(i).

          (iii)     Constructive
Ownership Rules.  For purposes Sections
7.1(i)(B) and 7.1(i)(A)(ii):

          (a)      Subparagraph
(C) of Section 318(a)(2) of the Code shall be applied by substituting
“Five Percent” for “Fifty Percent”, and

          (b)      In
the case of any Employer which is not a corporation, ownership in such Employer
shall be determined in accordance with regulations prescribed by the secretary
which shall be based on principles similar to the principles of Code
Section 318 (as modified by Section 7.1(i)(B)(iii)(b)).

                    (C)     Aggregation
Rules do not apply for purposes of determining ownership in the Employer.  The rules of Subsections (b), (c), and (m)
of Section 414 of the Code shall not apply for purposes of determining
ownership in the Employer.

ARTICLE VIII

WITHDRAWALS AND LOANS

 
         Section 8.1   Withdrawal While Employed.  Subject to the provisions of this Article 8,
a Participant who has one (1) or more Accounts who remains in employment may
make withdrawals from his Employee Contribution Account and Rollover Account in
an amount of cash which shall not exceed the value of such accounts and
earnings and appreciation thereon. 
Amounts attributable to After-Tax Employee Contributions and Rollovers
and to the earnings and appreciation thereon may be withdrawn subject to such
conditions as the Committee shall provide.

 
         Section 8.2   Withdrawals of Employer Contributions.  (a)   A
Participant who has not attained age 591⁄2 or who has not been determined to have
a Disability may, upon proof of financial hardship satisfactory to the
Committee, elect to withdraw such portion of his Salary Reduction Account
(excluding earnings and appreciation thereon) and the vested percentage of the
amounts credited to his Employer Matching Account and Employer Additional
Account, as is needed on account of such financial hardship.  A withdrawal under this Section shall
be for not less than $1,000. 
Withdrawals under this Section 8.2 shall be permitted, according to
specific rules adopted by the Committee which shall be uniformly applied and
consistently followed, only to relieve an immediate and heavy financial need of
the Participant (including his Spouse or any dependent), not in excess of the
amount required to relieve such financial need, and only if, and to the extent,
such need cannot be satisfied from other resources reasonably available to him
(including assets of his Spouse and minor children reasonably available to
him).

          A
Participant making an application under this Section 8.2(a) shall have the
burden of presenting to the Committee evidence of such immediate and heavy
financial need and of the necessity of such withdrawal to satisfy such need.

          The
following expenses shall be deemed to be on account of an immediate and heavy
financial need of a Participant:

                    (i)       medical
expenses (within the meaning of Section 213(d) of the Code) incurred by
the Participant, his Spouse, or any dependent (within the meaning of
Section 152 of the Code);

                    (ii)      purchase
(excluding mortgage payments) of the Participant’s principal residence;

                    (iii)     payment
of tuition and related educational fees for the next twelve (12) months of
post-secondary education for the Participant, his Spouse, or any dependent; and

                    (iv)     the need to prevent the
eviction of the Participant from his principal residence or foreclosure on the
mortgage of his principal residence; and

                    (v)      such
other conditions as the Secretary of the Treasury may prescribe from time to
time.

          The
Committee will deem a distribution necessary to satisfy an immediate and heavy
financial need of a Participant if all of the following requirements are
satisfied:

                    (1)      the
distribution is not in excess of the amount of the financial need;

                    (2)      the
Participant has obtained all distributions (other than hardship distributions)
and all nontaxable loans currently available under all plans maintained by the
Employer;

                    (3)      the
Participant is prohibited from making any contributions under all other plans
maintained by the Employer and controlled group members for twelve (12) months
after receipt of the hardship distribution (for purposes of this paragraph (3),
“plans” shall mean all qualified and nonqualified plans of deferred
compensation, including stock option, stock purchase and similar plans and cash
or deferred arrangements of certified plans within the meaning of Section 125
of the Code, but excluding mandatory employer contribution portions of
defined benefit plans, health and welfare plans and health and welfare parts of
cafeteria plans within the meaning of Section 125 of the Code); and

                    (4)      the
Participant may not make, in the taxable year immediately following the taxable
year of the hardship distribution, elective contributions under
Section 401(k) of the Code under all other plans maintained by the
Employer and controlled group members in excess of the applicable limit under
Section 401(g) of the Code for the next taxable year less the amount of
such Participant’s Salary Reduction Contributions for the taxable year of the
hardship distributions.

          All
determinations under this Section 8.2(a) shall be based upon uniform and
nondiscriminatory rules and standards applicable to all Participants similarly
situated and shall be final, conclusive and binding on all interested parties.

                    (b)      A Participant who has
attained age 591⁄2 or who has been determined to have a Disability may withdraw,
in part or in whole, his Salary Reduction Account, his Employer Matching
Account, and his Employer Additional Account. 
Such withdrawals shall be subject to such conditions as the Committee
shall provide.

 
         Section 8.3   Loans to Participants.  (a)  Availability
of Loans.  Upon application by a
Participant, the Committee may approve a loan or loans to the Participant.  Payment of the loan proceeds to the
Participant will be made as soon as practicable after the receipt of the
Participant’s Loan Application by the Committee.  The amount of the loan shall be based on the Participant’s vested
interest in his account balance as of the preceding Valuation Date.  Loans under this Section 8.3 shall be
permitted to all Participants under uniform, nondiscriminatory borrowing rules
established by the Committee.  Any loan
hereunder will bear a reasonable rate of interest, will be repaid pursuant to a
fixed repayment schedule and will be evidenced by a Loan Application, in such
form as the Committee may require, signed by the Participant.

                    (b)      Borrowing Rules of the
Committee.  The Committee will adopt
borrowing rules for loans hereunder and may revise such rules from time to
time.  The rules will contain such
requirements pertaining to loans as the Committee may deem necessary or
desirable.  The borrowing rules will
govern the procedures and cut-off dates for applying for loans hereunder and
the terms of such loans, including (i) the number of loans that a Participant
may request in any Plan Year and the number of loans that may be outstanding at
any time to a Participant, (ii) any restrictions on reborrowings not stated in
this Section, (iii) the interest rate in effect from time to time for loans or
the method of ascertaining such interest rate, and (iv) the repayment schedule
for loans or the method for determining the repayment schedule.

                    (c)      Amount of Loans.  The minimum loan will be $1,000.  The
maximum loan to a Participant will be
50% of the Participant’s vested account balance as of the Valuation Date
immediately preceding the date when the loan is made.

          Notwithstanding
the above, no loan, when added to the outstanding balance of all other loans
from the Plan and other plans of this and related employers may exceed the
lesser of (i) $50,000, reduced by the excess (if any) of (I) the highest
outstanding balance of loans from the Plan during the one-year period ending on
the day before the date on which such loan was made, over (II) the outstanding
balance of loans from the Plan on the date on which such loan was made; or (ii)
one half of the present value of the vested account balance of the Participant.

                    (d)      Maximum Repayment
Period.  (i)  Other than Residential Loans. Except as
provided in Section 8.3(d)(ii), the maximum term of a loan will be five
(5) years.

                    (ii)      Residential
Loans. If a Participant requests a loan for the acquisition of the principal
residence of the Participant the repayment period will be determined by
reference to bank loans for the same purpose.

                    (e)      Security for Repayment.  Each loan hereunder will be a
Participant-directed investment for the benefit of the Participant requesting
such loan; accordingly, any default in the repayment of principal or interest
of any loan hereunder will reduce the amount available for distribution to such
Participant (or his Beneficiary).  Thus,
any loan hereunder will be effectively and adequately secured by the
Participant’s Accounts.

                    (f)       Repayment.  The Committee may require a Participant to
execute an agreement to repay the principal and interest of a loan through
regular payroll reduction payments from the Participant’s Compensation.  The Committee may establish back-up
repayment procedures for Participants who do not make payroll reduction
repayment.  In any event, substantially
level amortization of a loan, with payments not less frequently than quarterly,
shall be required over the term of the loan. 
Any loan hereunder may be prepaid, in whole or in part, at any time
without penalty.  If a Participant’s
service as an Employee is terminated for any reason, the entire unpaid
principal and interest of any loan then outstanding to such Participant will
become immediately due and payable.

                    (g)      Action upon Default.  If a Participant defaults on any payment of
interest or principal of a loan hereunder or defaults upon any other obligation
relating to such loan, the Committee may take such action or actions as it
determines to be necessary to protect the interest of the Plan.  Such actions may include commencing legal
proceedings against the Participant, or foreclosing on any security interest in
the Participant’s Accounts.

                    (h)      Accounting for Loans.  (i)  Source
of Loan.  The Committee will
establish rules governing the accounting procedures for loans.

                  (ii)      Loan
Account.  The Committee will
establish and maintain a Loan Account for each borrowing Participant.  The unpaid principal and accrued but unpaid
interest on the loans to a Participant will be reflected for Plan accounting
purposes in the Participant’s Loan Account. 
Repayments by the Participant will be credited to his Loan Account.  The Committee will establish uniform
procedures for transferring repayment amounts from his Loan Account to the
Participant’s other accounts.

ARTICLE IX

TRUST AND ADMINISTRATION

 
         Section 9.1   Trust Fund.  All contributions under this Plan shall be
paid to the Trustee and deposited in the Trust Fund and all amounts in the
Trust Fund, including investment income, shall be retained for the exclusive
benefit of Participants, Former Participants, and Beneficiaries and shall be
used to pay benefits to such persons or to pay administrative expenses of the
Plan and Trust Fund to the extent not paid by an Employer and shall not revert
to or inure to the benefit of any Employer.

          Notwithstanding anything
herein to the contrary, upon First Albany Corporation’s or the Committee’s
request, a contribution which was conditioned upon (i) a mistake in fact or
(ii) the deductibility of such contribution under Section 404 of the Code
may be returned to First Albany Corporation (or any other Employer to the
extent consented to in writing by First Albany Corporation or the Committee) in
the case of (i) above, within one (1) year after payment of the contribution
or, in the case of (ii) above, to the extent the deduction is disallowed within
one (1) year after the disallowance of the deduction.

 
         Section 9.2   Allocation of Responsibility
Among Fiduciaries for Plan and Trust Administration; Appointment of Committee.  The Fiduciaries shall have only those
specific powers, duties, responsibilities and obligations as are specifically
given them under this Plan or the Trust. 
A Committee shall be appointed by and serve at the pleasure of the Board
of Directors to assist in the administration of the Plan.  The Committee shall have the sole authority
to appoint and remove the Trustee, and any Investment Manager which may be
provided for under the Trust, and shall be the “Plan Administrator” and “named
Fiduciary” for purposes of ERISA and shall have the final responsibility for
administration of the Plan, which responsibility is specifically described in
this Plan and the Trust.  The Committee
shall have the specific delegated powers and duties described in the further
provisions of this Article 9, and such further powers and duties as hereinafter
may be delegated to it by First Albany Corporation.  An Employer, by adopting the Plan, accepts and delegates all of
its authority to First Albany Corporation or the Committee to the extent provided
for in the Plan or the Trust and to the extent delegated to the Committee by
the Board of Directors and shall make Employer Contributions under the Plan
with respect to its Employees to the extent First Albany determines that any
given Employer is required to do so. 
Subject to the Participant’s right to direct investment, as provided in
the Plan, the Committee or the Trustee shall have responsibility for the
administration of the Trust and the management of the assets held under the
Trust, all as specifically provided in the Trust.  Each Fiduciary warrants that any directions given, information
furnished, or action taken by it shall be in accordance with the provisions of
the Plan or the Trust, as the case may be, authorized or providing for such
direction, information or action. 
Furthermore, each Fiduciary may rely upon any such direction,
information or action of another Fiduciary, and with respect to the investment
of assets of the Plan that a Participant is authorized to direct the investment
of pursuant to the Plan any direction, information or action of such
Participant, as being proper under this Plan or the Trust, and is not required
under this Plan or the Trust to inquire into the propriety of any such
direction, information or action.  It is
intended under this Plan and the Trust that each Fiduciary and Participant
shall be responsible for the proper exercise of its own powers, duties,
responsibilities and obligations under this Plan and the Trust and that no
Fiduciary shall be responsible for any act or failure to act of any other Fiduciary.  No Fiduciary guarantees the Trust Fund in
any manner against investment loss or depreciation in asset value.

 
         Section 9.3   Payment of Compensation and Expenses.  All usual and reasonable expenses not paid
by an Employer shall be paid by the Trustee out of the principal or income of
the Trust Fund.  Any members of the
Committee who are Employees shall not receive compensation with respect to
their services for the Committee.

 
         Section 9.4   Claims Procedure.  The Committee shall have authority to make
all determinations with respect to the Plan including, but not limited to, the
determination of eligibility for Plan benefits and issues involving
construction or interpretation of Plan terms. 
Any denial by the Committee of the claim for benefits under the Plan by
a Participant or Beneficiary shall be stated in writing by the Committee and
delivered or mailed to the Participant or Beneficiary; and such notice shall
set forth the specific reasons for the denial. 
In addition, the Committee shall afford a reasonable opportunity to any
Participant or Beneficiary whose claim for benefits has been denied for a
review of the decision denying the claim and, in the event of continued
disagreement, either may appeal to the First Albany Corporation, whose decision
shall be final.

 
         Section 9.5   Records and Reports.  First Albany Corporation, the other
Employers, or the Committee if so designated by First Albany Corporation, shall
exercise such authority and responsibility as it or they deem appropriate in
order to comply with ERISA and governmental regulations issued thereunder
relating to records of Participant’s Service, account balances and the
percentage of such account balances which are nonforfeitable under Plan, and
notifications to Participants and annual registration with, and such other
requirements of, the Internal Revenue Service relating to the Plan.

 
         Section 9.6   Other Committee Powers and Duties.  The Committee shall have such duties and
powers as may be necessary to discharge its duties hereunder, including, but
not by way of limitation, the following:

                    (a)      To construe and interpret
the Plan, decide all questions of eligibility and determine the amount, manner
and time of payment of any benefits hereunder;

                    (b)      To prescribe procedures
to be followed by Participants or Beneficiaries filing applications for
benefits;

                    (c)      To prepare and
distribute, in such a manner as the Committee determines to be appropriate,
information explaining the Plan;

                    (d)      To receive from Employers
and from Participants such information as shall be necessary for the proper
administration of the Plan;

                    (e)      To furnish to Employers,
upon request, such annual reports with respect to the administration of the
Plan as are reasonable and appropriate;

                    (f)       To receive, review and
keep on file (as it deems convenient or proper) reports of the financial
conditions, and the receipts and disbursements, of the Trust Fund from the
Trustee;

                    (g)      To appoint or employ
individuals to assist in the administration of the Plan and any other agents it
deems advisable, including legal and actuarial counsel;

                    (h)      No member of the
Committee shall vote or be counted for quorum purposes on any matter relating
solely to himself or his rights under the Plan.

                    (i)       Other than by exercise
of its discretion as specifically provided for in the Plan (including the
authority granted under Section 4.1(b) to set the terms and limits of any
Employer Matching Contributions), the Committee shall have no power to add to,
subtract from, or modify any of the terms of the Plan, or to change or add to
any benefits provided by the Plan, or to waive or fail to apply any
requirements of eligibility for a benefit under the Plan.

 
         Section 9.7   Rules and Decisions.  The Committee may adopt such rules as it
deems necessary, desirable or appropriate. 
All rules and decisions of the Committee shall be uniformly and
consistently applied to all Participants in similar circumstances.  When making a determination or calculation,
the Committee shall be entitled to rely upon information furnished by a
Participant, a Beneficiary, an Employer, the legal counsel of an Employer, the
Actuary, and the Trustee.

 
         Section 9.8   Committee Procedures.  The Committee may act at a meeting or in
writing without a meeting.  The
Committee shall elect one of its members as chairman, appoint a secretary, who
may or may not be a Committee member, and to the extent required by the Trust
Agreement, advise the Trustee of such actions in writing.  The secretary shall keep a record of all
meetings and forward all necessary communications to any Employer, or the
Trustee.  The Committee may adopt such
bylaws and regulations as it deems desirable for the conduct of its
affairs.  All decisions of the Committee
shall be made by the vote of the majority including actions in writing taken
without a meeting.  A dissenting
Committee member shall not be responsible for any action or failure to act by
the majority if he registers his dissent in writing and delivers copies of such
registration of dissent to the other Committee members, First Albany
Corporation, and to the extent required by the Trust Agreement, the Trustee
within a reasonable time after he has knowledge of any such action or failure
to act.

 
         Section 9.9   Authorization of Benefit Payments.  The Committee shall issue directions to the
Trustee concerning all benefits which are to be paid from the Trust Fund
pursuant to the provisions of the Plan, and warrants that all such directions
are in accordance with this Plan.

 
         Section 9.10 Application and Forms for Benefits.  The Committee may require a Participant or
Beneficiary to complete and file with the Committee an application for a
benefit and all other forms approved by the Committee.  The Committee may require completion and
execution of a waiver of any otherwise required or potentially required
withholding for income tax purposes before approval of an application for a
loan.  The Committee may rely upon all
such information so furnished it, including the Participant’s or Beneficiary’s
current mailing address.

 
         Section 9.11 Facility of Payment.  Whenever, in the opinion of First Albany
Corporation and the Committee, a person entitled to receive any payment of a
benefit or installment thereof hereunder is under a legal disability or is
incapacitated in any way so as to be unable to manage his financial affairs,
the Trustee may be directed to make payment to such person or to this legal
representative or to a relative or friend of such person for this benefit, or
to apply the payment of the benefit of such person in such manner as First
Albany Corporation or the Committee consider advisable.  Any payment of a benefit or installment
thereof in accordance with the provisions of this Section shall be a
complete discharge of any liability for the making of such payment under the provisions
of the Plan.

 
         Section 9.12 Indemnification of the Committee.  The Committee and the individual members
thereof shall be indemnified by First Albany Corporation or any other
applicable Employer and not from the Trust Fund against any and all liabilities
arising by reason of any act or failure to act made in good faith pursuant to
the provisions of the Plan, including expenses reasonably incurred in the
defense of any claim relating thereto.

ARTICLE X

MISCELLANEOUS

 
         Section 10.1 Nonguarantee of Employment.  Nothing contained in this Plan shall be
construed as a contract of employment between any Employer and any Employee, or
as a right of any Employee to be continued in the employment of any Employer,
or as a limitation of the right of any Employer to discharge any of its
Employees, with or without cause.

 
         Section 10.2 Rights to Trust Assets.  No Participant or Beneficiary shall have any
right to, or interest in, any assets of the Trust Fund upon termination of his
employment or otherwise, except as provided from time to time under this Plan,
and then only to the extent of the benefits payable under the Plan, to such
Participant out of the assets of the Trust Fund.  All payments of benefits as provided for in this Plan shall be
made solely out of the assets of the Trust Fund and none of the Fiduciaries
shall be liable therefore in any manner.

 
         Section 10.3 Nonalienation of Benefits.  Except with respect to federal income tax
withholding and as provided under a qualified domestic relations order as described
in Section 414(p) of the Code, benefits payable under this Plan shall not
be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution, or levy of any
kind, either voluntary or involuntary, including any such liability which is
for alimony or other payments for the support of a spouse or former spouse or
for any other relative of the Participant, prior to actually being received by
the person entitled to the benefit under the terms of the Plan; and any attempt
to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or
otherwise dispose of any right to benefits payable hereunder, shall be
void.  The Trust Fund shall not in any
manner be liable for, or subject to, the debts, contracts, liabilities,
engagements or torts of any person entitled to benefits hereunder.

          Section 10.4 Incapacity. 
If the Committee determines that any person entitled to payments under
the Plan is an infant or incompetent or is unable to care for his affairs by
reasons of physical or mental disability, it may cause all payments due to such
person to be made to any other person for his benefit, without responsibility
to follow the application of amounts so paid. 
Payments made pursuant to this provision shall completely discharge the
Committee, all Employers, the Company, the Trustee, and the Plan Trust with
respect to the amount so paid.

          Section 10.5 Missing Payee.  If the Committee , after making reasonable efforts to locate a
payee under the Plan, including the mailing of due notice to such person at his
last known address as shown by the records of an Employer, and any other
measures, if any, the Committee may deem reasonable to locate such payee, the
Committee is unable to make or direct the payment to any such person, then the
Committee shall place such payment in an interest bearing account until a
proper claim is made for it.

 
         Section 10.6 Nonforfeitability of Benefits.  Subject only to the specific provisions of
this Plan, nothing shall be deemed to divest a Participant of his right to the
nonforfeitable benefit to which he becomes entitled in accordance with the
provisions of this Plan.

 
         Section 10.7 Discontinuance of Employer Contributions.  In the event of a permanent discontinuance of
contributions to the Plan by an Employer, the accounts of all affected
Participants shall, as of the date of such discontinuance, become 100% vested
and nonforfeitable.

 
         Section 10.8 Severability.  In the event any provision of the Plan is
held illegal or invalid for any reason, said illegality or invalidity will not
affect the remaining parts of the Plan, and the Plan will be construed and
enforced as if said illegal and invalid provisions had never been a part of the
Plan.

 
         Section 10.9 Construction.
 Except where preempted by ERISA or
other federal law, the provisions of the Plan shall be construed, administered
and enforced according to the substantive laws (and not the choice of law
provisions) of the State of New York.

          Section
10.10  Agent for Service of Process.  First Albany Corporation shall serve as
agent for service of legal process.

ARTICLE XI

AMENDMENTS AND TERMINATION

 
         Section 11.1 Amendments.  First Albany Corporation reserves the right
to amend or terminate, in whole or in part, this Plan or the Trust; and to make
from time to time any amendment or amendments to this Plan which do not cause
any of the Trust to be used for, or diverted to, any purpose other than the
exclusive benefit of Participants, Former Participants, or their Beneficiaries,
provided, however, that First Albany Corporation may make any amendment it
determines necessary or desirable, with or without retroactive effect, to
comply with the Code or ERISA.  No
amendment to the Plan shall amend the powers and duties of the Trustee without
the Trustee’s consent.

 
         Section 11.2 Right to Terminate; Successor Employers.  In accordance with the procedures set forth
in this Article, First Albany Corporation may terminate the Plan at any
time.  In any event of the dissolution,
merger, consolidation or reorganization or sale of substantially all of the
assets of First Albany Corporation, the Plan shall terminate and the Trust Fund
shall be liquidated unless the Plan is continued by another Employer, or a
controlled group member of an Employer or a successor to First Albany
Corporation as provided for in this Section. 
In the event of the dissolution, merger consolidation, reorganization or
sale of substantially all of the assets of First Albany Corporation, provision
may be made by which the Plan and Trust will be continued by a successor; and,
in that event, such successor shall be substituted for First Albany Corporation
under the Plan.  The substitution of the
successor shall constitute an assumption of Plan liabilities by the successor
and the successor shall have all of the powers, duties and responsibilities of
the Employer under the Plan.

          An Employer may terminate its
participation in this Plan at any time by notice to First Albany Corporation
and the Committee, provided that an Employer’s termination of
participation in the Plan shall not affect its obligation to make any
contributions required by it under the Plan prior to receipt of such Employer’s
notice of resignation by First Albany Corporation.  An Employer’s participation in the Plan shall automatically
terminate in the event of the dissolution, merger, consolidation,
reorganization, sale or sale of substantially all of the assets of the Employer
unless with the approval of First Albany Corporation participation with respect
to that Employer’s employees is continued by a successor Employer.  In the event participation in the Plan with
respect to its Employees is continued by a Successor Employer, such Successor
shall be substituted for the dissolved, merged, consolidated, reorganized or
sold Employer under the Plan.  The
substitution of the Successor shall constitute an assumption of Plan
liabilities by the Successor and the Successor shall have all the powers,
duties and responsibilities of the succeeded Employer under the Plan.

 
         Section 11.3 Partial Termination.  Upon termination of the Plan by an Employer
with respect to a group of Participants, the Trustee shall, in accordance with
the directions of the Committee, allocate and segregate the portion of the
Trust Fund attributable to such Participants for the benefit of the
Participants then or theretofore employed by the Employer with respect to which
the Participants in the Trust Fund.  The
funds so allocated and segregated shall be used by the Trustee to pay benefits
to or on behalf of Participants in accordance with Section 11.4.

 
         Section 11.4 Liquidation of the Trust Fund.  Upon termination or partial termination of
the Plan, the accounts of all Participants affected thereby shall become fully
vested, and the Committee may direct the Trustee: (a) to continue to administer
the Trust Fund and pay account balances in accordance with Section 6.4 to
Participants affected by the termination upon their termination of employment
or to their Beneficiaries upon such a Participant’s death, until the Trust Fund
has been liquidated, or (b) to distribute the assets remaining in the Trust
Fund, after payment of any expenses properly chargeable thereto, to
Participants, Former Participants and Beneficiaries in proportion to their
respective account balances.

          In
case the Committee directs liquidation of the Trust Fund pursuant to (a) above,
the expenses of administering the Plan and Trust, if not paid by the Employers,
shall be paid from the Trust Fund.

 
         Section 11.5 Manner of Distribution.  To the extent that no discrimination in
value results, any distribution after termination of the Plan may be made in
whole or in part, in securities or other assets in kind, or in non-transferable
annuity contracts, as the Committee (in its discretion) may determine.  All non-cash distributions shall be valued
at fair market value at the date of distribution.

 
         Section 11.6 Action by Employer.  Any action by an Employer under this Plan
may be by resolution of its board of directors, or by any person or persons
duly authorized by resolution of said Board to take such action.

ARTICLE XII

MERGER OR CONSOLIDATION OF PLANS

 
         Section 12.1 Plan Assets.  In the event of any merger or consolidation
of the Plan with, or transfer in whole or in part of the assets and liabilities
of the Trust Fund to another trust fund held under any other plan of deferred
compensation maintained or to be established for the benefits of all or some of
the Participant’s of this Plan, the assets of the Trust Fund applicable to such
Participants shall be merged or consolidated with or transferred to the other
trust fund only if:

                    (a)      Each Participant would
(if either this Plan or the other Plan then terminated) receive a benefit
immediately after the merger, consolidation or transfer which is equal to or
greater than the benefit he would have been entitled to receive immediately
before the merger, consolidation or transfer (if this Plan was then
terminated); and the determination of such benefits shall be made in the manner
and at the time prescribed in regulations issued under ERISA;

                    (b)      Resolutions of the board
of directors of the applicable Employer under the Plan and resolutions of any
new or successor employer of the affected Participants and the Committee shall
authorize such transfer of assets; and, in the case of the new or successor
employer of the affected Participants, its resolutions shall include an
assumption of liabilities with respect to such Participants, inclusion in the
new Employer’s Plan; and

                    (c)      Such other Plan and Trust
are qualified under Sections 401(a) and 501(a) of the Code.

ARTICLE XIII

THE TRUSTEE

 
         Section 13.1 Trust Agreement.  The Committee shall enter into a Trust
Agreement pursuant to which the Trustee shall hold and invest the assets of the
Plan pursuant to Participant direction and otherwise in accordance with the
terms of the Plan.  The Trust Agreement
may be amended by the Committee from time to time in accordance with its terms.

          
Section
13.2 Powers of the Trustee.  The Trust Agreement shall provide, among
other things, that all funds received by the Trustee thereunder will be held,
administered, invested and distributed by the Trustee, and that no part of the
corpus or income of the Trust held by the Trustee shall be used for, or
diverted to, purposes other than for the exclusive benefit of Participants or
their Beneficiaries.  The Trustee may
deposit all or a portion of the Trust Fund with an insurer in accordance with
an agreement with an insurer for the payment of interest thereon.

 
         Section 13.3 Removal of the Trustee.  The Committee may remove the Trustee or any
successor Trustee, and any Trustee or any successor Trustee may resign.  Upon removal or resignation of a Trustee the
Committee shall appoint a successor Trustee.

 
         Section 13.4 Payment of Expenses.  The Employers may pay the expenses of
administration of the Trust, including any taxes which may be imposed upon the
corpus or income, legal expenses and compensation of the Trustee.  However, the Trustee may charge the Trust
Fund for such compensation and expenses until paid by Employers.

          IN WITNESS WHEREOF, FIRST ALBANY
CORPORATION has herewith caused its name to be signed by its duly authorized
officer this _____ day of _________________, 2000.

	 
  	 
  
	 
  	
  FIRST ALBANY CORPORATION
  
	 
  	 
  
	 
  	 
  
	 
  	
  By:

  

  
	 
  	 
  
	
  WITNESS:
  	

  

  
	 
  	
  Name
  
	 
  	 
  
	

  

  	

  

  
	 
  	
  Title
  
	 
  	 
  
	

  

  	 
  
	
  Date

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