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EXHIBIT 10.3

AMENDMENT NUMBER ONE

        This Amendment Number One is dated as of December 31, 2002 and is to the
Term Loan Agreement (the "Agreement") dated as of October 24, 2002 among
Hardinge Inc., the Banks signatory thereto and JPMorgan Chase Bank, as Sole
Administrative Agent, and KeyBank National Association, as Documentation Agent.
Terms used but not otherwise defined herein shall have the meanings ascribed
thereto in the Agreement.

        The Borrower has determined to make certain adjustments to its financial
statements and to recognize a nonrecurring charge to its shareholders equity for
the fiscal year ending December 31, 2002 in an amount not to exceed Eight
Million Two Hundred Forty Five Thousand Dollars ($8,245,000).

        In order to amend the Agreement, the parties agree as follows:

        1.    Section 8.02 of the Agreement shall be amended to read as follows:

        Net Worth. The Borrower shall maintain a Consolidated Tangible Net Worth
of not less than $117,000,000, at all times through December 31, 2002, which sum
shall increase by $1,000,000 as of the end of each Fiscal Year thereafter. In
the event that at any time there is a positive adjustment to shareholders equity
related to the Hardinge Inc. Pension Plan, the minimum Consolidated Tangible Net
Worth required will be increased by the amount of the positive adjustment.

        2.    Upon the execution of this Amendment Number One, the Borrower
shall pay to the Agent for the account of each Bank an amendment fee equal to
ten (10) Basis Points of the Commitment.

        3.    This Amendment Number One may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument, and any parties hereto may execute this Amendment Number One by
signing any such counterpart.

        4.    Other than as set forth in this Amendment Number One, the terms
and conditions of the Agreement shall remain in full force and effect.

        IN WITNESS WHEREOF, the parties have caused this Amendment Number One to
be executed by their duly authorized officers as of the day and year first above
written.

[Signature Pages Follow]

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    HARDINGE INC.
 
 
By:
/s/  J. PATRICK ERVIN      

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J. Patrick Ervin, Chairman of the Board
and Chief Executive Officer
 
 
AGENT:
 
 
JPMORGAN CHASE BANK
 
 
By:
/s/  CHRISTINE M. MCLEOD      

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Christine M. McLeod, Vice President
 
 
DOCUMENTATION AGENT:
 
 
KEYBANK NATIONAL ASSOCIATION
 
 
By:
/s/  ALBERT G. WHITE      

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Albert G. White, Senior Vice President

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    BANKS:
 
 
JPMORGAN CHASE BANK
 
 
By:
/s/  CHRISTINE M. MCLEOD      

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Christine M. McLeod, Vice President
 
 
KEYBANK NATIONAL ASSOCIATION
 
 
By:
/s/  ALBERT G. WHITE      

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Albert G. White, Senior Vice President
 
 
MANUFACTURERS AND TRADERS
TRUST COMPANY
 
 
By:
/s/  SUSAN A. BURTIS      

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Susan A. Burtis, Vice President
 
 
NBT, NATIONAL ASSOCIATION
 
 
By:
/s/  RONALD G. GOODWIN      

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Ronald G. Goodwin, Vice President

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EXHIBIT 10.3

AMENDMENT NUMBER ONE