Entry into Material Agreement
Item 1.01. Entry into a Material Definitive Agreement

On November 9, 2005, the Board of Directors of Mechanical Technology Incorporated (the Company) appointed Mr. Thomas J. Marusak as a member of the Company's Compensation, Nominating and Governance Committee (the Committee).

In connection with this appointment, Mr. Marusak received options to purchase 1,667 shares of Company common stock at a strike price of $3.74 per share based on the closing price of the Company's stock on the NASDAQ National Market System on the date of grant, as compensation for his service on the Committee through the date of the next Annual Shareholder's Meeting. All options are immediately vested.