FIRST ALBANY COMPANIES INC
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<TYPE>EX-10.35
<SEQUENCE>9
<FILENAME>j0205_ex10-35.htm
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<p align=right><font size=2 face=TIMES>EXHIBIT 10.35</font></p>

<p align=center><b><font size=2 face=TIMES>&nbsp;</font></b></p>

<p align=center><b><font size=2 face=TIMES>SUBLEASE</font></b></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>THIS SUBLEASE</b> is made and entered into this
___1__ day of August 2000, by and between <b>FIRST
ALBANY COMPANIES INC.,</b> a New York corporation having an address at
30 South Pearl Street, Albany, New York 12207-0052 (<b>&#147;First Albany&quot;</b>) and <b>FIRST
UNION SECURITIES, INC.,</b> a Delaware corporation having an address at
901 East Byrd Street, Riverfront Plaza, East Tower, Richmond, Virginia 23219 (<b>&quot;First Union&quot;</b>).</font></p>

<p><font size=2 face=TIMES>I <b>Basic
Provisions</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A.<b><u>Prime Landlord</u>:</b> One Penn Plaza LLC, a
New York limited liability company having an address c/o MRC Management LLC,
330 Madison Avenue, New York, New York 10017</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B.<u>Prime
Lease</u>: The lease (the <b>&quot;Initial
Lease&quot;</b>) dated as of March 21, 1996, by and between Mid-City
Associates (<b>&quot;Mid City&quot;</b>),
as landlord, and First Albany, as tenant, which Initial Lease has heretofore
been amended by the following instruments:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)Lease
Modification Agreement (the <b>&quot;First
Amendment&quot;</b>) dated as of June 17, 1996, by and between Mid City,
as landlord, and First Albany, as tenant;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)
Second Lease Modification Agreement (the <b>&quot;Second
Amendment&quot;</b>) dated as of July 12, 1996, by and between Mid City,
as landlord, and First Albany, as tenant;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)Third
Amendment of Lease (the <b>&quot;Third
Amendment&quot;</b>) dated as of December 1, 1999, by and between Prime
Landlord, as landlord, and First Albany, as tenant; and</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)Fourth
Amendment of Lease (the <b>&quot;Fourth
Amendment&quot;</b>) dated as of August 1, 2000, by and between Prime
Landlord, as landlord, and First Albany, as tenant.</font></p>

<p><font size=2 face=TIMES>The Initial Lease, as amended by the First
Amendment, the Second Amendment, the Third Amendment and the Fourth Amendment,
is herein called the <b>&quot;Prime Lease&quot;</b>.
The premises leased by Prime Landlord to First Albany pursuant to the Prime
Lease is herein called the <b>&quot;Prime Lease
Premises&quot;.</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; C<b>.<u>Property Address</u>:</b> One Penn Plaza,
New York, New York (the <b>&quot;Building&quot;</b>).</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; D<b>.<u>Description of Sublet Premises</u>:</b> A
portion of the forty-first (4lst) floor of the Building, consisting of
approximately nineteen thousand eight hundred twenty-six (19,826) square feet,
as shown on Exhibit A to the First Amendment, identified as the &quot;41st
Floor Space&quot; in the First Amendment (the <b>&quot;Sublet
Premises&quot;</b>).</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; E<b>.<u>First Albany's Address for Notices</u>:</b>
30 South Pearl Street, Albany, New York 12207, Attn:&nbsp; General Counsel.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F<b>.<u>First Albany's Address for Payment of Rent</u>:</b>
30 South Pearl Street, ALbany, New York 12207, Attn: Accounting Department.</font></p>

<PAGE>


<p>&nbsp;</p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G<b>.<u>Asset Purchase Agreement</u>:</b> The Asset
Purchase Agreement dated as of May 8, 2000 by and among First Union Securities,
Inc., First Albany and First Albany Corporation with respect to the sale of the
business of First Albany Corporation's Private Client Group.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; H<b>.<u>First Union's Percentage</u>:</b> First
Union's Percentage shall be 32.1438%.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I<b>.<u>Consent to Sublease</u>:</b> The Consent to
Sublease dated as of _________________ 2000 by and among Prime Landlord, as
landlord, First Albany, as tenant, and First Union, as subtenant.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; J<b>.<u>Other Definitions</u>:</b> Any capitalized
term not expressly defined in this Sublease shall have the meaning ascribed in
the Prime Lease.</font></p>

<p><font size=2 face=TIMES>2<b>.Sublease
Term</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A.The
term of this Sublease (the <b>&quot;Term&quot;</b>)
shall commence on the date upon which the transaction contemplated by the Asset
Purchase Agreement shall unconditionally close (the <b>&quot;Sublease Commencement Date&quot;</b>) and shall end on the
day before the third (3rd) anniversary of the Sublease Commencement Date (the <b>&quot;Sublease Expiration Date&quot;</b>),
unless sooner terminated as provided in this Sublease).</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B.If
First Union shall remain in possession of the Sublet Premises at any time after
the expiration or termination of the Term, First Union shall be deemed to be a
holdover tenant. The provisions of Section 18.02 of the Initial lease shall
apply as between First Albany and First Union in such circumstances.</font></p>

<p><font size=2 face=TIMES>3<b>.Sublease</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For
and in consideration of the Rent payable by First Union, and the covenants and
agreements to be performed by first Union, pursuant to the provisions of this
Sublease, First Albany hereby subleases the Sublet Premises to First Union, and
First Union hereby accepts the Sublet Premises from First Albany, subject to
the terms and conditions of this Sublease (including, without limitation, the
terms and conditions of both the Prime Lease and the Consent to Sublease, to
the extent that such terms and conditions are incorporated by reference into
this Sublease).</font></p>

<p><font size=2 face=TIMES>4<b>.Rent</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A.Commencing
on the Sublease Commencement Date, and on the first day of each month
thereafter during the Term, First Union shall pay a fixed base rent (the <b>&quot;Base Rent&quot;</b>) for the Sublet
Premises in the applicable amount set forth below:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)during
the period commencing on the Sublease Commencement Date and expiring on October
31, 2001, the amount of fifty-eight thousand eight hundred seven and 03/100
($58,807.03) dollars, corresponding to an annual rate of seven hundred five
thousand six hundred eighty-four and 30/100 ($705,684.30) dollars; and</font></p>

<PAGE>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2 face=TIMES>(iii)during
the period commencing on November 1, 2001 and continuing thereafter for the
remaining balance of the Term, the amount of sixty thousand four hundred
fifty-nine and 19/100 ($60,459.19) dollars, corresponding to an annual rate of
seven hundred twenty-five thousand five hundred ten and 30/100 ($725,510.30)
dollars<b>.1</b></font></p>

<p><font size=2 face=TIMES>If the Sublease Commencement Date is other
than the first day of a month, and/or the Sublease Expiration Date is other
than the last day of a month, the Base Rent for the month(s) in which such
day(s) occur shall be suitably pro-rated.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B.In
addition to the Base Rent, First Union shall also pay the following amounts, as
and when set forth below:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)the
monthly installments of Base Rent payable by First Union to First Albany under
this Sublease shall be increased on account of the monthly ERIF included,
pursuant to Section 27.04 of the Prime Lease, in the corresponding installments
of fixed annual rent payable by First Albany to Prime Landlord, as follows:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (a)if,
at any time during the Term, the amount of the then monthly ERIF with respect
to the Sublet Premises shall be identified by Landlord, in a rent bill or
otherwise, separately from the amount of the then monthly ERIF with respect to
the balance of the Prime Lease Premises, the amount of the Base Rent payable by
First Union to First Albany pursuant to this Sublease during such portion of
the Term shall be increased by an amount equal to such separately identified
monthly ERIF, as the same may be increased or decreased by Prime Landlord
pursuant to the provisions of the Prime Lease; and</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (b)if,
at any time during the Term, the amount of the then monthly ERIF with respect
to the Sublet Premises shall not be separately identified as set forth in subparagraph
(a) above, the amount of the Base Rent payable by First Union to First Albany
pursuant to this Sublease during such portion of the Term shall be increased by
an amount equal to First Union's Percentage of the monthly ERIF then in effect
with respect to the Prime Lease Premises, as the same may be increased or
decreased by Prime Landlord pursuant to the provisions of the Prime Lease;
monthly ERIF then in effect with respect to the Prime Lease Premises, as the
same may be increased or decreased by Prime Landlord pursuant to the provisions
of the Prime Lease;</font></p>





<hr size=2 width="25%" noshade color=black align=left>



<p><b><font size=2 face=TIMES>1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b><font size=2>It is the intention of the parties that the Base
Rent payable under this Sublease, before any increase thereof pursuant to
Paragraph 4B(i) hereof, shall be at an annual rate equal to one hundred
thousand ($100,000.00) dollars in excess of the fixed annual rent from time to
time payable by First Albany to Prime Landlord pursuant to the Prime Lease on
account of the Sublet Premises (before increase on account of the ERIF pursuant
to Section 27.04 of the Prime Lease, but after any increase on account of the
Escalated Amount pursuant to Paragraph B of Section 45 thereof). The amounts
set forth in Paragraphs 4A(i) and 4A(ii) hereof have been computed on such a
basis, assuming that the aforesaid Escalated Amount is equal to fifty-five
(55C) cents per square foot based upon information received from Prime
Landlord. However, Prime Landlord has yet to bill First Albany for the increase
in its fixed annual rent due to the inclusion of the Escalated Amount effective
January 1, 2000.&nbsp; If, once Prime
Landlord so bills First Union, the Escalated Amount shall be other than
fifty-five (55c) cents per square foot, the amounts of Base Rent payable under
this Sublease shall be adjusted retroactive to the Sublease Commencement Date,
on request of either party hereto, to reflect the actual Escalated Amount
billed to First Albany.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)First
Union shall pay to First Albany amounts equal to First Union's Percentage of
the respective amounts from time to time payable by First Albany to Prime
Landlord under Article 46 of the Prime Lease, which amounts shall be due and
payable as follows:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (a)with
respect to those amounts payable by First Albany to Prime Landlord pursuant to
the said Article 46 on a monthly basis together with the fixed rent payable
under the Prime Lease, the corresponding amounts payable by First Union to
First Albany pursuant to this subparagraph (ii) shall be due and payable
together with the corresponding installments of the Base Rent payable under this
Sublease; and</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (b)with
respect to those amounts payable by First Albany to Prime Landlord pursuant to
the said Article 46 other than on a monthly basis, the corresponding amounts
payable by First Union to First Albany pursuant to this subparagraph (ii) shall
be due and payable on the same basis as provided in the Prime Lease, but each
such payment shall be due under this Sublease five (5) days prior to the due
date for the corresponding payment under the Prime Lease;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)First
Union shall pay to First Albany one hundred (100%) percent of any amount or
amounts from time to time payable by First Albany to Prime Landlord pursuant to
Section 27.03(c) of the Prime Lease as a result of First Union's use of
ventilation, air-conditioning, or heating in the Sublet Premises at times other
than regular business hours, each of which payments shall be due under this
Sublease five (5) days prior to the due date for the corresponding payment
under the Prime Lease;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)in
the event that any charge or charges shall be payable, at any time or from time
to time, by First Albany to Prime Landlord pursuant to Section 27.06 of the
Prime Lease as a result of the purposes for which First Union uses water in the
Sublet Premises, First Union shall pay to First Albany one hundred (100%)
percent of such charge or charges, each of which payments shall be due under
this Sublease five (5) days prior to the due date for the corresponding charge
or charges under the Prime Lease;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v)in
the event that any charge or charges shall be payable, at any time or from time
to time, by First Albany to Prime Landlord pursuant to Section 27.08 and/or
Section 27.12 of the Prime Lease as a result of the character, nature, or
location in the Sublet Premises of First Union's refuse and/or rubbish, First
Union shall pay to First Albany one hundred (100%) percent of such charge or
charges, each of which payments shall be due under this Sublease five (5) days
prior to the due date for the corresponding charge or charges under the Prime
Lease;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi)in
the event that any charge or charges shall be payable, at any time or from time
to time, by First Albany to Prime Landlord pursuant to Paragraph D of Article
51 of the Prime Lease as a result of First Union's use of freight elevator
service outside of such elevator's normal hours of operation, First Union shall
pay to First Albany one hundred (100%) percent of such charge or charges, each
of which payments shall be due under this Sublease five (5) days prior to the
due date for the corresponding charge or charges under the Prime Lease, and</font></p>

<PAGE>


<p><font size=3 face=TIMES>&nbsp;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii)in
the event that any charge or charges shall be payable, at any time or from time
to time, by First Albany to Prime Landlord pursuant to any other provision of
the Prime Lease that are allocable to, and/or arise from, First Union's use
and/or occupancy of the Sublet Premises (including, without limitation, any
charge or charges payable under the Prime Lease or the Consent to Sublease as a
consequence of a breach by First Union of its obligations under this Sublease
or under the Consent to Sublease), First Union shall pay to First Albany one
hundred (100%) percent of such charge or charges, each of which payments shall
be due under this Sublease five (5) days prior to the due date for the
corresponding charge or charges under the Prime Lease.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; C.All
charges, costs and sums required to be paid by First Union to First Albany
pursuant to this Sublease (including, without limitation, all charges, costs
and sums required to be paid pursuant to the Prime Lease, as incorporated
herein by reference), other than the Base Rent reserved herein, shall be deemed
to be <b>&quot;Additional Rent&quot;</b>,
for default in the payment of which First Albany shall have the same rights and
remedies as for a default in the payment of Base Rent.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; D.All
Base Rent and Additional Rent (collectively, the <b>&quot;Rent&quot;</b>) payable by First Union to First Albany under
this Sublease shall be paid, as and when the same shall become due and payable
hereunder, in lawful money of the United States that shall be legal tender in payment
of all debts and dues, public and private, at the time of payment at the office
of First Albany identified in Section 1 or at such other place as First Albany
may designate, without any set-off, offset, abatement, or deduction whatsoever.</font></p>

<p><font size=2 face=TIMES>5<b>.Prime
Lease</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A.First
Albany is the tenant under the Prime Lease with the Prime Landlord. First
Albany represents and warrants to First Union that:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)the
Prime Lease is, as of the date hereof, in full force and effect;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)no
default has been committed by First Albany under the Prime Lease that has
remained uncured past the applicable period of time to cure following the
service of the applicable notice of default upon First Albany (an &quot;Event
of Default&quot;); and</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)to
First Albany's knowledge, no event has occurred and is continuing that would
constitute an Event of Default under the Prime Lease but for the requirement of
the service of notice and/or the expiration of the period of time to cure.</font></p>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<PAGE>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2 face=TIMES>B.This
Sublease, and all the rights of parties hereunder, are subject and subordinate
in all respects to the Prime Lease and the Consent to Sublease. Neither party
shall, by its act or omission to act, cause a default under the Prime Lease or
the Consent to Sublease. In furtherance of the foregoing, the parties hereby
confirm, each to the other, that it is not practical in this Sublease to
enumerate all of the rights and obligations of the various parties under the
Prime Lease or the Consent to Sublease, and to specifically allocate those
rights and obligations in this Sublease. Accordingly, in order to afford to
First Union the benefits of this Sublease, and to protect First Albany against
a default by First Union that might cause a default or an Event of Default by
First Albany under the Prime Lease or the Consent to Sublease, the parties
agree, as between themselves, as follows:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)First
Albany shall perform all of its covenants and obligations under the Prime Lease
and the Consent to Sublease that are not otherwise required to be performed by
First Union on behalf of First Albany pursuant to the provisions of this
Sublease;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)First
Union shall perform all of its covenants and obligations under the Consent to
Sublease;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)First
Union shall perform all affirmative covenants of the Prime Lease pertaining to
the Sublet Premises (other than any monetary obligation of First Albany to
Prime Landlord thereunder, which monetary obligations, as between First Union
and First Albany, shall be deemed to be superceded by the provisions of
Paragraph 4 above), and shall refrain from any act or omission to act
pertaining to the Sublet Premises that is prohibited by any of the negative
covenants of the Prime Lease, where the obligation to so perform or so refrain
is by its nature imposed upon the party in possession of the Sublet Premises
(including, but not limited to, the performance of any repairs required to be
made by First Albany to the Sublet Premises in accordance with the terms of the
Prime Lease); and</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)First
Albany shall not agree to any amendment to the Prime Lease that might have an
adverse effect on First Union's occupancy of the Sublet Premises, unless First
Albany obtains First Union's prior written consent to such amendment (which
consent shall not be unreasonably withheld or delayed).</font></p>

<p><font size=2 face=TIMES>If practicable, First Union shall perform
each of the affirmative covenants referred to in subparagraphs (ii) and (iii)
above at least five (5) days prior to the date when the same shall be required
to be performed pursuant to the Consent to Sublease or the Prime Lease (as the case
may be). First Albany shall have the right to enter the Sublet Premises, at any
time and from time to time, to cure any default(s) by First Union under this
Sublease (including, without limitation, any default(s) under subsection (ii)
and/or (iii) above).</font></p>

<PAGE>


<p>&nbsp;</p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; C.First
Albany shall have no duty to perform any obligations of Prime Landlord that
are, by their nature, the obligation of an owner, operator, or manager of real
property. First Albany shall have no responsibility for, nor shall First Albany
be liable to First Union for, any default, failure, or delay on the part of
Prime Landlord in the performance or observance by Prime Landlord of any of its
obligations under the Prime Lease. However, upon receipt of a written notice
from First Union specifying in reasonable detail any such default, failure, or
delay by Prime Landlord and requesting First Albany's assistance with respect
to the same, First Albany shall use its reasonable commercial efforts to cause
Prime Landlord to perform its obligations under the Prime Lease<b>, provided, however, </b>that First Albany
shall not be required hereunder to make any financial or other concessions to
Prime Landlord, or to engage in any litigation against Prime Landlord, in order
to cause Prime Landlord to fulfill its obligations under the Prime Lease.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; E.In
no event shall the provisions of Articles 39, 48, 49, 50 and 52 of the Prime
Lease, Paragraphs F, G and H of Article 45 thereof, Paragraphs L and M of
Article 51 thereof, Paragraph 3(c), 3(d), 10, or 11 of the First Amendment,
Paragraph 3(c) or 3(d) of the Second Amendment, or Paragraph 3(b)(iv) of the
Third Amendment be deemed to be incorporated into this Sublease, by reference
or otherwise.</font></p>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<p><font size=2 face=TIMES>6<b>.Condition
of Premises</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A.First
Albany shall deliver possession of the Sublet Premises to First Union, on or
before the Sublease Commencement Date, in their condition as of the date of
this Sublease, &quot;AS IS&quot;. First Albany shall have no obligation to
perform any work or make any installations to prepare the Sublet Premises for
First Union's occupancy.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B.First
Union agrees to accept possession of the Sublet Premises, not later than the
Sublease Commencement Date, in their condition as of the date of this Sublease,
'AS IS', without any agreements, representations, understandings or obligations
on First Albany's part.</font></p>

<p><font size=2 face=TIMES>7<b>.First
Union's Use</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Sublet Premises shall be used and occupied solely for the purposes set forth in
Article 2 of the Prime Lease. In no event shall the Sublet Premises be used in
any manner, or for any purpose, that is inconsistent with any of the provisions
of the Prime Lease (including, without limitation, Article 2 thereof).</font></p>

<p><font size=2 face=TIMES>8<b>.Quiet
Enjoyment</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First
Albany represents that it has full power and authority to enter into this
Sublease, subject to the consent of the Prime Landlord. So long as First Union
is not in default in the performance of its covenants and agreements in this
Sublease, First Union's quiet and peaceable enjoyment of the Sublet Premises
shall not be disturbed or interfered with by First Albany, or by any person
claiming by, through, or under First Albany.</font></p>

<p><font size=2 face=TIMES>9<b>.Assignment
or Subletting</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First
Union shall not, unless First Union obtains the prior written consent of both
First Albany and Prime Landlord in each instance:</font></p>

<PAGE>


<p><font size=3 face=TIMES>&nbsp;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)assign
its rights or delegate its duties under this Sublease (whether by operation of
law, transfers of interests in First Union or otherwise), mortgage, or encumber
its interest in this Sublease, in whole or in part;</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)sublet,
or permit the subletting of, the Sublet Premises or any part thereof; or</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)permit
the Sublet Premises, or any part thereof, to be occupied or used for desk
space, mailing privileges, or otherwise, by any person or entity other than
First Union.</font></p>

<p><font size=2 face=TIMES>In the event that both First Albany and
Prime Landlord grants its consent to any action proposed to be taken by First
Union hereunder, such consent shall not be deemed or construed as a waiver of
the obligation of First Union to obtain the prior written consent of both First
Albany and Landlord to any further such action proposed to be taken by First
Union.</font></p>

<p><font size=2 face=TIMES>10<b>.Alterations</b></font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A.Any
alterations, installations, improvements, additions or other physical changes
(other than decorations) in, to, or about the Sublet Premises (as the case may
be, <b>'Alterations&#146;</b>) must be made in
accordance with the provisions of the Prime Lease. In each instance where,
pursuant to the Prime Lease, the prior written consent of Prime Landlord shall
be required in connection with any Alteration proposed to be made by First
Union in, to or about the Sublet Premises, the prior written consent of First
Albany shall be required as well.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B.First
Union shall indemnify, defend and hold harmless First Albany against liability,
loss, cost, damage, lien and/or expense imposed on First Albany arising out of
the performance of any Alterations by First Union in, to, or about the Sublet
Premises.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; C.In
the event that First Albany shall so request in writing not later than thirty
(30) days after the expiration or termination of the Term, First Union shall,
subject to the applicable provisions of the Prime Lease and at First Union's
sole cost and expense, remove those Alterations, theretofore made by First
Union in, to, or upon the Sublet Premises, specified in First Albany's request,
as well as repair and restore the Sublet Premises with respect thereto.
Provided that First Albany shall make such a request more than ninety (90) days
prior to the expiration or termination of the Term, First Union shall cause
such work to be completed not later than such expiration or termination date.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; D.In
the event that the Prime Lease shall be terminated prior to the Sublease
Expiration Date by reason of any default by First Albany under the Prime Lease,
and either:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)First
Union shall be required, pursuant to the provisions of clause (iii) of
Paragraph 7A of the Consent to Sublease, to restore the Sublet Premises to
Building standard condition; or</font></p>

<PAGE>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2 face=TIMES>(ii)First
Union shall be required, pursuant to the provisions of clause (iii) of
Paragraph 7B of the Consent to Sublease, to reimburse Prime Landlord for any of
the costs therein set forth, then, and in either such event, First Albany shall
reimburse First Union for all of the costs and expenses incurred by First Union
in order to comply with such obligation under the Consent to Sublease. Such
reimbursement shall be made promptly after First Albany's receipt of a written
demand from First Union therefor, which demand shall be delivered to First
Albany together with paid bills and invoices evidencing, or other reasonable
evidence of, the amount to be so reimbursed.</font></p>

<p><font size=2 face=TIMES>11.Inndemnity</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First
Union shall indemnify First Albany, and hold First Albany harmless, from and
against all losses, damages, costs, liabilities and expenses of any kind or
nature (including, but not limited to, attorneys' fees and other defense costs)
that First Albany may incur, and/or for which First Albany may be liable to
Prime Landlord, arising from the acts or omissions of First Union that are the
subject matter of any indemnity or hold harmless agreement of First Albany in
favor of Prime Landlord under the Prime Lease or the Consent to Sublease. The
provisions of this Section 12 shall survive the expiration or termination of
the Term with respect to any liability, suit, obligation, fine, damage,
penalty, claim, cost, charge, or expense arising out of, or in connection with,
any act, omission, or any other matter occurring during the Term.</font></p>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<p><font size=2 face=TIMES>12.First Albany's Reserved Rights</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First
Union shall permit First Albany, Prime Landlord and their respective agents,
representatives, designees, contractors, appraisers and prospective successors
and assigns to enter the Sublet Premises at all reasonable times (but not more
frequently than is reasonable under the circumstances), on reasonable notice,
except in the case of an emergency in accordance with the provisions of Article
11 of the Prime Lease.</font></p>

<p><font size=2 face=TIMES>13.Defaults</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any
one or more of the following events shall be considered &quot;Events of
Default&quot;, as said term is used herein:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)if
First Union shall be adjudged an involuntary bankrupt, or a decree or order
approving, as properly filed, a petition or answer filed against First Union
asking reorganization of First Union under the Federal bankruptcy laws (as now
or hereafter amended), or under the laws of any State, shall be entered, and
any such decree or judgment or order shall not have been vacated, stayed, or
set aside within sixty (60) days from the date of the entry or granting
thereof; or</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)if
First Union shall file, or admit the jurisdiction of the court and the material
allegations contained in, any petition in bankruptcy, or any petition pursuant,
or purporting to be pursuant, to the Federal bankruptcy laws (now or hereafter
amended), or First Union shall institute any proceedings for relief of First
Union under any bankruptcy or insolvency laws, or any laws relating to the
relief of debtors, readjustment of indebtedness, reorganization, arrangements,
composition, or extension; or</font></p>

<PAGE>


<p>&nbsp;</p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)if
First Union shall make any assignment for the benefit of creditors, or shall
apply for, or consent to, the appointment of a receiver for First Union or any
of the property of First Union; or</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)if
First Union shall admit in writing its inability to pay its debts as they
become due; or</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v)if
the Sublet Premises are subject to any lien or levy; or</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi)if
a decree or order appointing a receiver of the property of First Union shall be
made, and such decree or order shall not have been vacated, stayed or set aside
within sixty (60) days from the date of entry or granting thereof; or</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii)if
First Union shall default in any payment required to be made by First Union
hereunder when due as herein provided, and such default shall continue for ten
(10) days after notice thereof in writing to First Union; or</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (viii)if
First Union shall, by its act or omission to act, cause a default under the
Prime Lease, and such default shall not be cured within the time, if any,
permitted for such cure under the Prime Lease, as applicable; or</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ix)if
First Union shall default in any of the other covenants and agreements herein
contained to be kept, observed and performed by First Union, and such default
shall continue for twenty (20) days after notice thereof in writing to First
Union.</font></p>

<p><font size=2 face=TIMES>14.Remedies</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon
the occurrence of any one or more Events of Default, First Albany may exercise
any remedy against First Union which Prime Landlord may exercise for default by
First Albany under the Prime Lease.</font></p>

<p><font size=2 face=TIMES>15.Notices and Consents</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All
notices, demands, requests, consents, or approvals that may or are required to
be given by either party to the other shall be in writing, and shall be deemed
given when received or refused if sent by United States registered or certified
mail, postage prepaid, return receipt requested, or if sent by overnight
commercial courier service:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)if
to First Union, addressed to First Union at the address specified in Section 1
or at such other place as First Union may from time to time designate by notice
in writing to First Albany; or</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)if
to First Albany, addressed to First Albany at the address specified in Section
I or at such other place as First Albany may from time to time designate by
notice in writing to First Union.</font></p>

<p><font size=2 face=TIMES>Each party agrees promptly to deliver a
copy of each notice, demand, request, consent, or approval from such party to
Prime Landlord, and promptly to deliver to the other party a copy of any
notice, demand request, consent, or approval received from Prime Landlord.</font></p>

<p><font size=2 face=TIMES>16.Brokerage</font></p>

<PAGE>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2 face=TIMES>Each
party warrants to the other that it has had no dealings with any broker or
agent, other than Cushman &amp; Wakefield, Inc. (the &quot;Broker&quot;), in
connection with this Sublease, and covenants to pay, hold harmless and
indemnify the other party from and against any and all cost (including, without
limitation, reasonable attorneys' fees), expense, or liability for any
compensation, commissions and/or charges claimed by any broker or other agent,
other than the Broker, with respect to this Sublease or the negotiations
thereof on behalf of such party.</font></p>

<p><font size=2 face=TIMES>17.Late Charges</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If
First Union shall fail to pay any installment of Base Rent, or any other item
of Rent, when due, and shall fail to cure such default within five (5) days
after notice thereof in writing to First Union, First Union shall pay to First
Albany, in addition to such installment of Base Rent or other item of Rent, as
the case may be, as a late charge, a sum equal to the lesser of:</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)a
fixed rate equal to four (4) percentage points above the published prime rate
of Citibank, N.A., New York, New York, for one-year commercial loans
(&quot;Citibank Prime&quot;) in effect on the date such amount was due and
payable, or</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)the
maximum rate of interest permitted by law.</font></p>

<p><font size=2 face=TIMES>Notwithstanding the foregoing grace
period, the foregoing late charge, if payable as above set forth, shall be
computed from the date upon which the Base Rent or other item of Rent was due
to the date upon which the same is actually paid to First Albany.<br>
18.Taxes</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First
Union shall pay all taxes imposed on its personal property, the conduct of its
business and its use and occupancy of the Sublet Premises.</font></p>

<p><font size=2 face=TIMES>19.Counterpart Signatures</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This
Sublease may be executed in several counterparts, each of which shall be deemed
an original but all of which shall constitute one and the same agreement.</font></p>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IN
WITNESS WHEREOF, the parties have duly executed and delivered this Sublease as
of the day and year first above Written.</font></p>

<p><font size=2 face=TIMES>FIRST ALBANY COMPANIES INC.</font></p>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="37%">
 <tr>
  <td width=53 valign=top>
  <font size=2   face=TIMES>BY:</font>
  </td>
  <td width=233 valign=top>&nbsp;
  </td>
 </tr>
 <tr>
  <td width=53 valign=top>&nbsp;
  </td>
  <td width=233 valign=top>&nbsp;
  </td>
 </tr>
 <tr>
  <td width=53 valign=top>&nbsp;
  </td>
  <td width=233 valign=top>
  <font size=2   face=TIMES>Name:
  Stephen Wink</font>
  </td>
 </tr>
 <tr>
  <td width=53 valign=top>&nbsp;
  </td>
  <td width=233 valign=top>
  <font size=2   face=TIMES>Title:
  Secretary &amp; GC</font>
  </td>
 </tr>
 <tr>
  <td  align=center width=286 colspan=2 valign=top>&nbsp;
  </td>
 </tr>
 <tr>
  <td width=286 colspan=2 valign=top>
  <font size=2   face=TIMES>FIRST
  UNION SECURITIES, INC.</font>
  </td>
 </tr>
 <tr>
  <td width=53 valign=top>&nbsp;
  </td>
  <td width=233 valign=top>&nbsp;
  </td>
 </tr>
 <tr>
  <td width=53 valign=top>
  <font size=2   face=TIMES>By:</font>
  </td>
  <td width=233 valign=top>&nbsp;
  </td>
 </tr>
 <tr>
  <td width=53 valign=top>&nbsp;
  </td>
  <td width=233 valign=top>&nbsp;
  </td>
 </tr>
 <tr>
  <td width=53 valign=top>&nbsp;
  </td>
  <td width=233 valign=top>
  <font size=2   face=TIMES>Name:
  William S Trausau</font>
  </td>
 </tr>
 <tr>
  <td width=53 valign=top>&nbsp;
  </td>
  <td width=233 valign=top>
  <font size=2   face=TIMES>Title:VP</font>
  </td>
 </tr>
 <tr>
  <td width=53 valign=top>&nbsp;
  </td>
  <td width=233 valign=top>&nbsp;
  </td>
 </tr>
 <tr>
  <td width=53 valign=top>&nbsp;
  </td>
  <td width=233 valign=top>&nbsp;
  </td>
 </tr>
</TABLE>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="42%">
 <tr>
  <td width=179 valign=top>
  <font size=2   face=TIMES>STATE
  OF NEW YORK</font>
  </td>
  <td width=140 valign=top>
  <font size=2   face=TIMES>)</font>
  </td>
 </tr>
 <tr>
  <td width=179 valign=top>&nbsp;
  </td>
  <td width=140 valign=top>
  <font size=2   face=TIMES>)&nbsp;&nbsp;ss.&nbsp;:</font>
  </td>
 </tr>
 <tr>
  <td width=179 valign=top>
  <font size=2   face=TIMES>COUNTY
  OF ALBANY</font>
  </td>
  <td width=140 valign=top>
  <font size=2   face=TIMES>)</font>
  </td>
 </tr>
</TABLE>

<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On
the 1st day of August in the year 2000, before me, the undersigned, a Notary
Public in and for said State, personally appeared Stephen Wink, personally
known to me or proved to me on the basis of satisfactory evidence to be the
individual(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s) on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted,
executed the instrument.</font></p>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<dir><dir><dir><dir><dir><dir>
<p><font size=2 face=TIMES>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notary Public</font></p>
</dir></dir></dir></dir></dir></dir>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<dir><dir><dir><dir><dir><dir><dir><dir>
<table border=0 cellspacing=0 cellpadding=0 width="57%">
 <tr>
  <td width=439 valign=top>
  <font size=2   face=TIMES>LENORE
  ALQUIST</font>
  </td>
 </tr>
 <tr>
  <td width=439 valign=top>
  <font size=2   face=TIMES>Notory
  Public, State of New York</font>
  </td>
 </tr>
 <tr>
  <td width=439 valign=top>
  <font size=2   face=TIMES>No.
  01AH5081405</font>
  </td>
 </tr>
 <tr>
  <td width=439 valign=top>
  <font size=2   face=TIMES>Qualified
  In Saratoga County</font>
  </td>
 </tr>
 <tr>
  <td width=439 valign=top>
  <font size=2   face=TIMES>Commission
  Expires June 30, 2OO1</font>
  </td>
 </tr>
</TABLE>
</dir></dir></dir></dir></dir></dir></dir></dir>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="63%">
 <tr>
  <td width=240 valign=top>
  <font size=2   face=TIMES>STATE
  OF NORTH CAROLINA</font>
  </td>
  <td width=240 valign=top>
  <font size=2   face=TIMES>)</font>
  </td>
 </tr>
 <tr>
  <td width=240 valign=top>&nbsp;
  </td>
  <td width=240 valign=top>
  <font size=2   face=TIMES>)&nbsp;&nbsp;ss.&nbsp;:</font>
  </td>
 </tr>
 <tr>
  <td width=240 valign=top>
  <font size=2   face=TIMES>COUNTY
  OF Mecklenburg</font>
  </td>
  <td width=240 valign=top>
  <font size=2   face=TIMES>)</font>
  </td>
 </tr>
</TABLE>

<PAGE>


<p><font size=2 face=TIMES>On the 31<sup>st</sup> day of JULY in the
year 2000, before me, the undersigned, a Notary Public in and for said State
personally appeared William S Trausau personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name) is
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his capacity, and that by his signature on the instrument,
the individual, or the person upon behalf of which the individual acted,
executed the instrument.</font></p>

<p><font size=3 face=TIMES>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width=213 valign=top>&nbsp;
  </td>
  <td width=546 valign=top>
  <font size=2   face=TIMES>Notary
  Public</font>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top>&nbsp;
  </td>
  <td width=546 valign=top>&nbsp;
  </td>
 </tr>
 <tr>
  <td width=213 valign=top>&nbsp;
  </td>
  <td width=546 valign=top>
  <font size=2   face=TIMES>My
  Commission Expires March 4 2001</font>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top>&nbsp;
  </td>
  <td width=546 valign=top>&nbsp;
  </td>
 </tr>
</TABLE>

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