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                                                                    EXHIBIT 10.1

                     SECOND AMENDMENT TO TERM LOAN AGREEMENT

         THIS SECOND AMENDMENT (the "Amendment"), dated as of March 20, 2002, is
made to that certain Term Loan Agreement, dated as of March 20, 2001, as the
same was amended by that certain First Amendment to Term Loan Agreement, dated
as of October 1, 2001 (collectively, the "Original Loan Agreement"), by and
between HARDINGE INC., a New York corporation (the "Borrower') and KEYBANK
NATIONAL ASSOCIATION, a national banking association (the "Lender").

                                    RECITALS:

         WHEREAS, the Borrower has requested that certain changes and
modifications be made to the Original Loan Agreement, including a certain
financial covenant therein contained, and the Lender is agreeable to making the
same in accordance with the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the promises and of the mutual
covenants herein contained, the receipt and sufficiency of which are hereby
mutually acknowledged, and intending to be legally bound hereby, the parties
hereto agree as follows:

         1. DEFINITIONS. All capitalized terms used and not otherwise defined in
this Amendment shall have the meanings ascribed to such terms in the Loan
Agreement.

         2. CERTAIN DEFINITIONS The definition of "Fixed Charges" set forth in
Section 1.01 of the Original Loan Agreement is hereby amended in its entirety to
read as follows:

                  "Fixed Charges" means the sum of interest expense, current
                  maturities of long-term debt (excluding (i) as of December 31,
                  2001 any debt outstanding under that certain $50,000,000
                  Credit Agreement, dated as of August 1, 1997, by and among the
                  Borrower, the banks signatory thereto, and The Chase Manhattan
                  Bank as Agent ("Chase"), most recently amended by Amendment
                  Number Three, dated as of September 20, 2001 (collectively,
                  the "Line of Credit") and the entire principal amount of the
                  Loan, and (ii) as of March 31, 2003, any debt outstanding
                  under the Line of Credit and $22,800,000 of the principal
                  amount of the Loan) and current maturities of Capital Leases
                  (all calculated for the period of measurement of the financial
                  covenant contained herein)."

         3. MISCELLANEOUS. This Amendment is entered into pursuant to and in
accordance with SECTION 9.03 of the Original Loan Agreement. This Amendment may
be executed in counterparts, each of which shall be deemed an original and all
of which together shall constitute one and the same instrument. Except as
expressly modified or amended herein, the Original Loan Agreement and each of
the other Loan Documents to which the Borrower is a party is hereby restated,
ratified and confirmed and shall remain in full force and effect.

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         IN WITNESS WHEREOF, the parties hereto, by their officers thereunto
duly authorized, have caused this Second Amendment to Term Loan Agreement to be
duly executed and delivered as of the date first above written.

                                              HARDINGE INC.

                                              By:  /s/ Thomas T. Connelly
                                                   ----------------------
                                                   Thomas T. Connelly
                                              Title: Treasurer

                                              KEYBANK NATIONAL ASSOCIATION

                                              By:  /s/ Albert G. White, III
                                                   ------------------------
                                                   Albert G. White, III
                                              Title:  Senior Vice President

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                                                                    EXHIBIT 10.2

                     THIRD AMENDMENT TO TERM LOAN AGREEMENT

         THIS THIRD AMENDMENT (the "Amendment"), dated as of April 5, 2002, is
made to that certain Term Loan Agreement, dated as of March 20, 2001, as the
same was amended by (i) that certain First Amendment to Term Loan Agreement,
dated as of October 1, 2001, and (ii) that certain Second Amendment to Term Loan
Agreement, dated as of March 20, 2002 (all of the foregoing being collectively
referred to herein as, the "Original Loan Agreement"), by and between HARDINGE
INC., a New York corporation (the "Borrower'), and KEYBANK NATIONAL ASSOCIATION,
a national banking association, (the "Lender").

                                    RECITALS:

         WHEREAS, the Lender has advised the Borrower that the Borrower may
become in violation of certain of the terms, covenants and conditions of the
Original Loan Agreement; and

         WHEREAS, the Borrower has requested that the Lender modify the Original
Loan Agreement in order to avoid any such violations and the Lender is agreeable
to doing the same provided that (i) the "Loan" (as such term is defined in the
Original Loan Agreement) is restructured on terms and conditions satisfactory to
the Lender, (ii) the Borrower grant to the Lender a prior perfected security
interest in and to certain property of the Borrower, and (iii) certain changes
and modifications be made to the Original Loan Agreement, including, but not
limited to, a reduction in the principal amount of the Loan and certain
modifications to certain definitions and covenants therein contained, all as
more fully set forth herein.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the promises and of the mutual
covenants herein contained, the receipt and sufficiency of which are hereby
mutually acknowledged, and intending to be legally bound hereby, the parties
hereto agree as follows:

         1. DEFINITIONS. All capitalized terms used and not otherwise defined in
this Amendment shall have the meanings ascribed to such terms in the Original
Loan Agreement. The Original Loan Agreement and the Amendment are sometimes
collectively referred to herein as the "Loan Agreement".

         2. CERTAIN DEFINITIONS.

                  (a) SECTION 1.01 of the Original Loan Agreement is amended in
         part by either amending and restating certain definitions or adding
         certain definitions, as follows:

         "Banks" shall mean the banks signatory to the Line of Credit and the
         1996 Agreement from time to time.

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         "Collateral" means all property which is, or may in the future be,
         subject to the lien granted to the Lender by the Security Documents.

         "Consolidated Current Assets" means all assets of the Borrower and its
         Consolidated Subsidiaries, treated as current assets in accordance with
         GAAP.

         "Consolidated Current Liabilities" means all liabilities of the
         Borrower and its Consolidated Subsidiaries, treated as current
         liabilities in accordance with GAAP, including without limitation (a)
         all obligations payable on demand or within one (1) year after the date
         in which the determination is made, and (b) installment and sinking
         fund payments required to be made within one (1) year after the date on
         which determination is made, but excluding any such indebtedness
         renewable or extendable at the option of the obligor under, or payable
         from the proceeds of other indebtedness which may be incurred pursuant
         to the provisions of any revolving credit agreements or other similar
         agreement.

         "Consolidated Subsidiary" means any Subsidiary whose accounts are or
         are required to be consolidated with the accounts of the Borrower in
         accordance with GAAP.

         "Consolidated Tangible Net Worth" means Tangible Net Worth of the
         Borrower and its Consolidated Subsidiaries, as determined on a
         consolidated basis in accordance with GAAP.

         "Fixed LIBOR Rate" shall mean with respect to each day during each
         Interest Period pertaining to the Loan, a rate per annum (based on a
         year of 360 days and actual days elapsed) determined for the first day
         of each such Interest Period in accordance with the following formula
         rounded upward to the nearest 1/16 of 1% plus three hundred (300) Basis
         Points:

                               LIBOR Base Rate
              ----------------------------------------------------------
                      1.00 -   Eurocurrency Reserve Requirements

         "Floating Rate" shall mean a rate per annum (computed on the basis of a
         year of 360 days and actual days elapsed) for each day equal to the
         Prime Rate for such day as computed prior to 12:00 noon eastern time
         plus fifty (50) Basis Points, such interest rate to change
         automatically from time to time effective as of the effective date of
         each change in the Prime Rate.

         "Intercreditor Agreement" shall mean that certain Intercreditor
         Agreement, dated as of April 5, 2002, by and among JP Morgan, as Agent,
         the Lender and the Borrower, as the same may hereafter be amended,
         modified, restated or supplemented from time to time hereafter, wherein
         the parties thereto agree among other things that, notwithstanding the
         date, time, manner or order of perfection of any security interests,
         attachments, judgments

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         and/or liens granted to and/or obtained by the Lender or JPMorgan, as
         Agent (or any of the Banks) in and to any of the Collateral, the Lender
         and JPMorgan (and the Banks) agree that, as between themselves, their
         respective claims to and interests in the Collateral shall be
         equivalent and of equal priority, and that any proceeds derived from
         the Collateral and/or from any attachments, judgments dispositions
         and/or liens in Collateral shall be shared pari passu, with neither the
         Lender, JPMorgan nor any of the Banks having any priority over the
         other.

         "JPMorgan" shall mean JPMorgan Chase Bank f/k/a The Chase Manhattan
         Bank, successor by merger to The Chase Manhattan Bank (National
         Association), and any successor thereto or assignee thereof.

         "Line of Credit" shall mean that certain Credit Agreement, dated as of
         August 1, 1997, by and among the Borrower, the Banks, and JPMorgan as
         Agent, most recently amended by Amendment Number Four, dated as of
         April 5, 2002.

         "Line of Credit Commitment" shall mean the "Commitment" as such term is
         defined in the Line of Credit.

         "Loan Documents" shall mean the Loan Agreement, the Note, the Security
         Documents, any Guarantees and the other agreements and instruments
         extending, renewing, refinancing or refunding any indebtedness,
         obligation or liability arising under any of the foregoing, in each
         case as the same may be amended, modified, restated or supplemented
         from time to time hereafter.

         "1996 Agreement" shall mean the Credit Agreement among the Borrower,
         the Banks and The Chase Manhattan Bank (National Association) as Agent
         dated as of February 28, 1996 and most recently amended by Amendment
         Number Five dated as of April 5, 2002.

         "Note" shall mean the Term Loan Promissory Note of the Borrower to the
         order of the Lender, dated March 20, 2001, in the principal amount of
         $24,000,000.00, as the same is amended and restated by that certain
         Amended and Restated Term Loan Promissory Note of the Borrower to the
         order of the Lender, dated April 5, 2002, in the principal amount of
         $23,000,000.00.

         "Restructuring Fee" shall have the meaning set forth in Section 7 of
         the Amendment.

         "Security Agreement" shall mean that certain Security Agreement of the
         Borrower, dated as of April 5, 2002 and executed and delivered pursuant
         to the Amendment.

         "Security Documents" shall mean, collectively, the Security Agreement,
         any stock powers or other ancillary documents executed and delivered in
         connection with the foregoing and any and all financing statements
         filed in connection therewith, as each of the same may be amended,
         continued, modified, restated or supplemented from time to time
         hereafter.

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         "Tangible Net Worth" shall mean the total shareholders' equity prior to
         any cumulative foreign currency translation adjustments minus
         intangible assets.

         "Term Loan Maturity Date" shall mean the date specified in Section 2.01
         (e) of the Loan Agreement as hereinafter set forth.

                  (b) SECTION 1.01 of the Original Loan Agreement is further
         amended in part by deleting therefrom the following terms and
         definitions: in their respective entireties: "Acquisition Agreement";
         "Acquisition Date"; "Applicable Margin Ratio"; and "Arrangement Fee".

         3. TERM LOAN.

                  (a) Subsection (a) of Section 2.01 of the Original Loan
         Agreement is amended in its entirety as follows: "Subject to the terms
         and conditions and relying upon the representations and warranties
         herein set forth, the Lender agrees (such agreement being herein called
         the Lender's "Term Loan Commitment") to make a loan (the "Term Loan")
         to the Borrower on the date hereof in the aggregate principal amount of
         $23,000,000.00."

                  (b) Subsection (c) of SECTION 2.01 of the Original Loan
         Agreement is amended in its entirety as follows: "The Term Loan made by
         the Lender shall be evidenced by the Note, in substantially the form
         attached hereto as EXHIBIT A with the blanks appropriately completed,
         payable to the order of the Lender in the principal amount equal to
         $23,000,000.00."

                  (c) SECTION 2.01 of the Original Loan Agreement is amended by
         adding thereto a new subsection (e) as follows:

                           "(e) TERM LOAN MATURITY DATE. The Term Loan Maturity
                           Date shall be March 1, 2008; provided, however, that
                           if the Borrower does not extend, renew or replace the
                           Line of Credit by no later than March 31, 2003 on
                           terms and conditions satisfactory and acceptable to
                           the Lender in its sole and absolute discretion then,
                           in such event, the Term Loan Maturity Date shall
                           automatically and without notice or further action on
                           the part of the Lender be August 1, 2003. Nothing
                           contained herein shall constitute or be deemed to
                           constitute a covenant, promise or agreement of any
                           kind or character, express or implied, on the part of
                           the Lender to consent or agree to any such extension,
                           renewal or replacement, or the terms and conditions
                           thereof.

         4. INTEREST RATE. SECTION 2.02 of the Original Loan Agreement is
amended in its entirety as follows:

                  "FIXED LIBOR RATE. The unpaid principal amount of the Term
         Loan shall bear interest for each day until due at the Fixed LIBOR Rate
         for the Interest Period determined

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         as of March 20, 2002 initially, and thereafter as of each subsequent
         Regular Payment Date, commencing on June 20, 2002."

         5. MANDATORY PREPAYMENT. SECTION 2.07 of the Original Loan Agreement is
amended in its entirety as follows:

                  "2.07 MANDATORY PREPAYMENTS.

                  (a) PREPAYMENTS FROM MORTGAGE PROCEEDS. In the event that
         after the date of the Amendment the Borrower, any Subsidiary or
         Affiliate incurs Indebtedness secured, in whole or in part, by any
         mortgage, deed of trust, deed to secure debt, deed in lieu of a
         mortgage or security interest, security interest, lien, assignment,
         pledge, grant, transfer, conveyance (including, but not limited to,
         land contract), hypothecation, encumbrance, restriction (including, but
         not limited to, any negative pledge agreement) or equivalent, of any
         kind, character or description, on any real property and/or any right,
         title or interest therein owned or held by the Borrower or any
         Subsidiary or Affiliate then, in any such event, the Borrower shall
         simultaneously apply all of the proceeds of such financing or debt
         placement, as the case may be (net of reasonable and customary
         out-of-pocket costs and expenses) as follows: sixty-three and one-half
         percent (63.5%) of such net proceeds shall be applied to the payment of
         the outstanding principal under the Line of Credit and the
         corresponding permanent reduction of the Line of Credit Commitment, and
         thirty-six and one-half percent (36.5%) of such net proceeds shall be
         applied to the prepayment of the outstanding principal balance of the
         Loan. At such time, if any, as the outstanding principal under Line of
         Credit has been paid in full and the Line of Credit Commitment has been
         permanently reduced and eliminated in its entirety, the entire amount
         of any such net proceeds shall be applied to the prepayment of the
         outstanding principal balance of the Loan.

                  (b) PROVISIONS OF LOAN AGREEMENT APPLICABLE TO MANDATORY
         PREPAYMENTS. Prepayments required by this SECTION 2.07 are subject to
         all of the terms and conditions applicable to prepayments generally
         pursuant to SECTION 2.05 and SECTION 2.10(B) hereof and to all of the
         terms and conditions applicable to optional prepayments pursuant to
         SECTION 2.06. If the Borrower is required to give notice of a
         prepayment but for any reason fails to give a notice in accordance with
         the provisions of this Agreement, the amount as to which the Borrower
         is required to have given notice of prepayment shall nevertheless be
         deemed due and payable as of the date on which it was required to have
         been prepaid (for purposes of calculating interest on such amounts
         pursuant to SECTION 2.09(C) hereof and otherwise)."

         6. REPRESENTATIONS AND WARRANTIES. The Borrower hereby restates,
ratifies and confirms with respect to this Amendment, as of the date hereof,
each of the representations and warranties set forth in Article III of the
Original Loan Agreement as if each of the same was set forth fully herein.

         7. CONDITIONS TO ENTERING INTO AMENDMENT. The obligation of the Lender
to enter into this Amendment and to restructure the Loan as of the date hereof
in accordance with the terms and conditions hereof is subject to the
satisfaction of the following conditions:

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                  (a) AGREEMENT; NOTE. The Lender shall have received an
         executed counterpart of this Amendment, duly executed by the Borrower,
         and an executed original Term Loan Note conforming to the requirements
         hereof, duly executed by the Borrower.

                  (b) CORPORATE PROCEEDINGS. The Lender shall have received a
         certificate by the Secretary of the Borrower, dated as of or prior to
         the date hereof as to (i) true copies of the certificate of
         incorporation and by-laws (or other constituent documents) of the
         Borrower in effect on such date (which, in the case of the certificate
         of incorporation or other constituent documents filed or required to be
         filed with the Secretary of State or other Governmental Authority in
         its jurisdiction of incorporation, shall be certified to be true,
         correct and complete by such Secretary of the Borrower as of the date
         hereof), (ii) true copies of all corporate (and, when necessary,
         shareholder) action taken by the Borrower relative to this Amendment
         and the other Loan Documents to which its is a party, and (iii) the
         incumbency and signature of the respective officers of the Borrower
         executing this Amendment and the other Loan Documents to which it is a
         party, together with satisfactory evidence of the incumbency of each
         such officer. The Lender shall have received certificates from the
         appropriate Secretaries of State or other applicable Governmental
         Authorities dated not more than thirty (30) days before the date hereof
         showing the good standing of the Borrower in its state of organization.

                  (c) INSURANCE. The Lender shall have received a certificate
         setting forth all casualty and liability policies of insurance in force
         with respect to the Borrower, issued by an insurance agent reasonably
         acceptable to the Lender, and from an insurance carrier rated "A-" or
         better by A.M. Best & Company or a comparable rating agency, and
         reasonably satisfactory in form, amounts, covered risks and substance
         to the Lender.

                  (d) LEGAL OPINION OF COUNSEL TO BORROWER. The Lender shall
         have received an opinion addressed to the Lender, dated the date
         hereof, of Sayles & Evans, Elmira, New York, counsel to the Borrower,
         as to such matters as may be requested by the Lender and in form and
         substance reasonably satisfactory to the Lender.

                  (e) FEES, EXPENSES, ETC. All fees and other compensation to be
         paid to the Lender pursuant hereto or pursuant to any other written
         agreement on or prior to the date hereof shall have been paid or
         received, and all invoiced expenses incurred by the Lender pursuant
         hereto shall have been paid, including, but not limited to, the
         Lender's Restructuring Fee in the amount of $48,000.

                  (f) REPRESENTATIONS AND WARRANTIES. Except with respect to the
         representations and warranties expressly deemed made as of an earlier
         date, each of the representations and warranties made by the Borrower
         in this Amendment and in ARTICLE III of the Original Loan Agreement
         shall be true and correct in all material respects on and as of such
         date as if made on and as of such date, both before and after giving
         effect to the Loan and the Lender shall have received a certificate by
         a Responsible Officer of the Borrower, dated as of or prior to the date
         hereof to such effect.

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                  (g) NO DEFAULTS. No Event of Default or Potential Default
         shall have occurred and be continuing on such date or after giving
         effect to the Loan.

                  (h) NO VIOLATIONS OF LAW, ETC. The restructuring of the Loan
         as herein contemplated and the entering into of this Amendment shall
         not cause the Borrower to violate or conflict with any Law in any
         material respect.

                  (i) NO MATERIAL ADVERSE CHANGE. There shall not have occurred
         a material adverse change in the business, operations, assets or
         condition (financial or otherwise) of the Borrower or any of its
         Subsidiaries since March 31, 2002. There shall not have occurred any
         other event, act or condition that is likely to have a Material Adverse
         Effect.

                  (j) LINE OF CREDIT AMENDMENTS. The Borrower shall have entered
         into and closed the Fourth Amendment to, and constituting a portion of,
         the Line of Credit on terms, covenants and conditions satisfactory to
         the Lender in its sole and absolute discretion (including, but not
         limited to, the terms, covenants and conditions of any and all
         instruments, documents, agreements, certifications, affidavits and
         opinions evidencing, securing, guaranteeing or otherwise delivered in
         connection with such amendment). In addition to the foregoing, the
         Borrower shall deliver or cause to have delivered to the Lender for its
         review and approval complete and accurate copies of all drafts of such
         amendment documents as well as copies of each of the final documents
         delivered and fully executed by the parties thereto.

                  (k) INTERCREDITOR AGREEMENT. The Lender and JPMorgan shall
         have executed and delivered the Intercreditor Agreement containing such
         terms, covenants and conditions satisfactory to the Lender in its sole
         and absolute discretion.

                  (l) PREPAYMENT OF LOAN. Effective March 20, 2002, the Borrower
         shall have prepaid One Million and No/100 Dollars ($1,000,000.00) of
         the principal amount of the "Loan", as such term was defined in the
         Original Loan Agreement, such prepayment to be made from the proceeds
         of an unsecured term loan by Chemung Canal Trust Company to the
         Borrower in such principal amount (which loan shall provide for the
         payment of interest only until September 30, 2003, at which time the
         entire unpaid principal amount thereof, together with all accrued
         unpaid interest thereon and all other sums due thereunder, shall be
         paid in full).

                  (m) ADDITIONAL MATTERS. The Lender shall have received such
         other certificates, opinions, documents and instruments as may
         reasonably be requested by the Lender. All corporate and other
         proceedings, and all other documents, instruments and other matters in
         connection with the transactions contemplated by this Amendment and the
         other Loan Documents shall be satisfactory in form and substance to the
         Lender in its commercially reasonable judgment.

         Borrower's execution and delivery of this Amendment shall constitute a
         representation and warranty by the Borrower that the conditions set
         forth in this SECTION 7 have been satisfied in all material respects as
         of the date hereof.

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         8. CERTAIN AFFIRMATIVE COVENANTS.

                  (a) SECTION 5.02 of the Original Loan Agreement is amended by
         adding the following after the last sentence thereof: "Such insurance
         shall include, but not be limited to, insurance against the risks of
         product liability, personal injury, property damage, and workers'
         compensation. Without limiting the generality of the foregoing, the
         insurance required to be maintained by the Borrower and its domestic
         Subsidiaries on their respective properties shall be in an amount equal
         to the full replacement cost thereof, except to the extent, if any,
         limited by applicable insurance law. Such insurance shall include
         coverage against risks of fire and all other risks as fall within
         "extended coverage" as that term is generally understood in the
         insurance industry. Such insurance shall name the Lender as an
         additional insured (excluding property insurance, where such insurance
         shall name Lender as loss payee).

                  (b) The Original Loan Agreement is amended by adding thereto
         the following sections under Article IV thereof ("Affirmative
         Covenants"):

                  "5.11 MAINTENANCE OF PROPERTIES AND SECURITY INTEREST IN
                  COLLATERAL.

                  The Borrower shall keep all property used, useful or necessary
         in its business (including, but not limited to, the Collateral) in good
         working order, condition and repair and shall execute such
         documentation and take such steps as the Lender may, in its sole
         discretion, deem reasonable or necessary from time to time to protect
         its security interests, in whole or in part, in and to any of the
         Collateral. Without limiting the generality of the foregoing, the
         Borrower hereby grants the Lender as agent the right to file in any
         filing office in any Uniform Commercial Code jurisdiction any initial
         financing statements, continuation statements and amendments thereto
         that indicate any of the Collateral.

                  5.12 LANDLORD WAIVERS.

                  The Borrower will furnish the Lender within thirty (30) days
         following the date of the Amendment fully completed and executed
         landlord waivers and consents, substantially in the form set forth in
         EXHIBIT B hereto, from all landlords at locations leased by the
         Borrower and all domestic Subsidiaries as set forth on SCHEDULE 1
         hereto. Borrower represents and warrants to Lender that all locations
         set forth on SCHEDULE 1 are the only actively operating leased
         locations of Borrower and all such domestic Subsidiaries. In the event
         the Borrower or any Subsidiary enters into any leases after the date of
         the Amendment, the Borrower shall deliver to the Lender, simultaneously
         with the execution and delivery of any such lease, waivers and consents
         from each landlord, substantially in the form set forth in EXHIBIT B
         hereto.

                  5.13 L. KELLENBERGER & CO. AG AUTHORIZATION.

                  Within thirty (30) days after the date hereof, Borrower shall
         furnish to Lender evidence reasonably satisfactory to Lender that L.
         Kellenberger & Co. AG

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         ("Kellenberger") was duly authorized to execute and deliver the
         Security Agreement and impose the lien thereunder on all Patents
         identified therein and held by Kellenberger, and that such agreement
         constitutes the legal, valid and binding obligation of Kellenberger, or
         in lieu thereof, an opinion letter of Swiss Counsel, in form and
         substance reasonably satisfactory to the Lender, confirming (i) the due
         formation, organization and good standing of Kellenberger under the
         laws of Switzerland, and (ii) that the execution and deliver of the
         Security Agreement and the imposition of the lien thereunder on the
         Patents held by Kellenberger were duly authorized by all necessary
         corporate action, required no consent of any third party, do not
         violate the provisions of any law or any agreements to which
         Kellenberger is subject and constitute the legal valued and binding
         obligation of Kellenberger.

                  5.14 ADDITIONAL GUARANTORS. If at any time during the term
         hereof, Borrower shall create or acquire a domestic subsidiary, or if
         any domestic subsidiary of Borrower existing as of the date hereof
         shall acquire, have assigned to it or otherwise possess any assets,
         then, in any such event, Borrower shall, within ten (10) days
         thereafter and without demand therefor, cause each such subsidiary to
         execute and deliver to Lender a guaranty of payment, in form and
         substance reasonably satisfactory to Lender, together with a security
         agreement in form and substance similar to the Security Agreement.

         9. CERTAIN NEGATIVE COVENANTS.

                  (a) SECTION 6.01 of the Original Loan Agreement is amended in
         its entirety to read as follows:

                  "6.01 FINANCIAL COVENANTS.

                  During the term hereof, the Borrower on a consolidated basis
                  shall not:

                  (a) Permit the ratio of Funded Debt to EBITDA measured as of
                      the last day of each fiscal quarter for the immediately
                      preceding twelve (12) months to be greater than (A) 3.75
                      to 1.0 for the fiscal quarter ending March 31, 2002, (B)
                      4.0 to 1.0 for the fiscal quarters ending June 30, 2002
                      and September 30, 2002, and (C) 4.2 to 1.0 for the fiscal
                      quarter ending December 31, 2002, (D) 4.0 to 1.0 for the
                      fiscal quarter ending March 31,2003; (E) 3.75 to 1.0 for
                      the fiscal quarter ending June 30, 2003 and (F) 2.5 to 1.0
                      thereafter.

                  (b) Permit the ratio of EBITDA to Interest, measured as of the
                      last day of each fiscal quarter for the immediately
                      preceding twelve (12) months, to be less than (A) 4.0 to
                      1.0 for the fiscal quarter ending March 31, 2002, (B) 3.0
                      to 1.0 for the fiscal quarter ending June 30, 2002, (C)
                      2.5 to 1.0 for the fiscal quarter ending September 30,
                      2002, (D) 3.0 to 1.0 for the fiscal quarters ending
                      December 31, 2002 and March 31, 2003 and (E) 3.25 to 1.0
                      for the fiscal quarter ending June 30, 2003.

                  (c) Permit the working capital of the Borrower (i.e. the
                      excess of Consolidated Current Assets over Consolidated
                      Current Liabilities) to be less than $85,000,000.00 at any
                      time through August 31, 2003 (in calculating working

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                      capital for the purposes of this covenant, the Lender
                      shall include in its calculation of Consolidated Current
                      Liabilities as of the following dates the following
                      amounts of principal indebtedness due and payable by the
                      Borrower in accordance with the terms and conditions of
                      the Note: from March 31, 2002 to and including June 29,
                      2002- $1,200,000; from June 30, 2002 to and including
                      September 29, 2002- $2, 400,000; from September 30, 2002
                      to and including December 30, 2002- $3,600,000 and from
                      December 31, 2002 and at all times thereafter $4,800,000.
                      No other principal portion of the Loan shall be included
                      in the Lender's calculation of Consolidated Current
                      Liabilities except to the extent, if any, that such other
                      principal portion, or any part thereof, may be classified
                      for accounting purposes as a current liability by virtue
                      of an event of default under the Loan).

                  (d) Permit the Consolidated Tangible Net Worth of the Borrower
                      to be less than $130,000,000 at any time through December
                      31, 2002 and less than $132,000,000 at any time through
                      August 31, 2003.

                  (e) Permit the Fixed Charge Coverage Ratio of the Borrower to
                      be less than 1.50 to 1.00 as of the fiscal quarter ending
                      September 30, 2003 and as at the end of each fiscal
                      quarter of the Borrower thereafter, measured quarterly as
                      of the period of the four (4) then most recently completed
                      quarters of the Borrower."

                  (b) SECTION 6.02 of the Original Loan Agreement is amended by
         deleting from the first paragraph thereof the word "Debt" and inserting
         in its place the word "Indebtedness". SECTION 6.02(D) of the Original
         Loan Agreement is amended by deleting therefrom the following clause:
         "Except as provided in (h) below,".

                  (c) SECTION 6.02(H) of the Original Loan Agreement is amended
         in its entirety to read as follows: "Liens now or hereafter granted to
         JPMorgan, as Agent, to securer the Line of Credit, the 1996 Agreement,
         and any derivative and/or foreign currency exchange exposure or
         liability of JPMorgan, provided, however, that in each and every
         instance the Intercreditor Agreement (or any amendments or supplements
         thereto or agreements in addition thereto, as the case may be),
         containing such terms and conditions as the Lender shall require in its
         sole and absolute discretion, has been executed and delivered by and to
         the Lender;".

                  (d) SECTION 6.02 of the Original Loan Agreement is amended by
         adding thereto the following additional subsections:

                      "(i)   Liens granted to or in favor of the Lender; and

                       (j)   Liens created in favor of any Person by or pursuant
                             to any mortgage, deed of trust, deed to secure
                             debt, deed in lieu of a mortgage or security
                             interest, security interest, lien, assignment,
                             pledge, grant, transfer, conveyance (including, but
                             not limited to, land contract), hypothecation,
                             encumbrance, restriction (including,

                                       10
<Page>

                             but not limited to, any negative pledge agreement)
                             or equivalent, of any kind, character or
                             description, on any real property and/or any right,
                             title or interest therein owned or held by the
                             Borrower or any Subsidiary or Affiliate provided,
                             however, that the Borrower complies fully with the
                             requirements of SECTION 2.07(A) of the Loan
                             Agreement."

                  (e) SECTION 6.08 of the Original Loan Agreement is amended in
         its entirety to read as follows:

                  Section 6.08  CONSOLIDATIONS, MERGERS, ACQUISITIONS AND SALES
                                OF ASSETS.

                  Consolidate or merge with or into, or sell, lease or otherwise
                  dispose of any of its assets to, any Person or acquire all or
                  any substantial portion of the properties, assets or shares of
                  stock of any other organization or permit any Subsidiary to do
                  any of the above except that:

                     a)  any Subsidiary may consolidate or merge with the
                         Borrower or any wholly-owned subsidiary of the
                         Borrower;

                     b)  the Borrower or any Subsidiary may sell, lease or
                         otherwise dispose of any of its inventory in the
                         ordinary course of business and any of its assets which
                         are obsolete, excess or unserviceable;

                     c)  the Borrower or any Subsidiary may sell, pledge or
                         discount customer notes in accordance with the terms of
                         the Pledge Agreement (Customer Notes) (as defined
                         below);

                     d)  the Borrower or any Subsidiary may sell, lease or
                         otherwise dispose of any of its assets (other than as
                         permitted by clauses (a)-(c) inclusive), provided that
                         the aggregate net value of all assets of the Borrower
                         and its Subsidiary sold, leased, or otherwise disposed
                         of during any fiscal year of the Borrower pursuant to
                         this clause (d) shall not exceed five percent (5%) of
                         the Consolidated Tangible Net Worth of the Borrower and
                         its Subsidiaries at the end of the preceding fiscal
                         year.

                     All sales, leases or disposition of assets pursuant to
                     clause (b), (c) or (d) shall be at fair market value.

                  (f) The Original Loan Agreement is amended by adding thereto
         the following section under Article VI thereof ("Negative Covenants"):

                  "6.10 AMENDMENT TO LINE OF CREDIT AND CERTAIN OTHER DOCUMENTS.

                  The Borrower will not in any manner, express or implied,
amend, modify, waive, renew, extend, restate, replace or supplement the Line of
Credit or the 1996 Agreement (or cause or permit any of the same to be done) or
grant any further or additional Liens to or in favor of JPMorgan or the Banks
except on such terms, covenants and conditions as the Lender may

                                       11
<Page>

approve in writing, which approval the Lender may grant, condition or withhold
in its sole and absolute discretion."

         10. CERTAIN EVENTS OF DEFAULT.

         (a) SECTION 7.01(d) of the Original Loan Agreement is amended by adding
after the last sentence thereof the following: "Without limiting the generality
of the foregoing, any default or event of default that occurs under and pursuant
to the terms of the Line of Credit or the 1996 Agreement shall constitute an
event of default hereunder."

         (b) SECTION 7.01 of the Original Loan Agreement is amended by adding
thereto the following subsections:

                  "(i) The Borrower shall fail to maintain or cause to be
         maintained any insurance required under the Loan Agreement or any other
         Loan Document.

                   (j) The Borrower or any Subsidiary shall, except in the
         ordinary course of business, sell, transfer, convey or assign any of
         the Collateral, or any right, title or interest (legal or equitable)
         therein without the prior written consent of the Lender (which may be
         withheld, conditioned or delayed by the Lender in its sole and absolute
         discretion.

                  (k) The commencement of a foreclosure or forfeiture action or
         proceeding, whether civil or criminal, at law or in equity, including,
         but not limited to, any non-judicial power of sale, or the occurrence
         of any other event, which, in the Lender's sole and absolute
         discretion, could result in the foreclosure, forfeiture or loss of any
         of the Collateral or otherwise materially impair the Liens, or the
         priority thereof, in favor of the Lender in and to any of the
         Collateral."

         11. MISCELLANEOUS. This Amendment is entered into pursuant to and in
accordance with SECTION 9.03 of the Original Loan Agreement. This Amendment may
be executed in counterparts, each of which shall be deemed an original and all
of which together shall constitute one and the same instrument. The Borrower
agrees to pay or cause to be paid and to save the Lender harmless against
liability for the payment of all reasonable out-of-pocket costs and expenses
(including, but not limited to, reasonable fees and expense of counsel,
including local counsel, in-house counsel, auditors, consulting engineers,
appraisers and all other professional, accounting, evaluation and consulting
costs) incurred by the Lender from time to time arising out of or relating to
the (i) the negotiation, preparation, execution and delivery of the Loan
Agreement and the other Loan Documents; (ii) the administration and performance
of the Loan Agreement and the other Loan Documents, (iii) any requested
amendments, modifications, supplements, waivers or consents (whether or not
ultimately entered into or granted) to the Loan Agreement or any Loan Document,
and (iv) the enforcement or preservation of rights under the Loan Agreement or
any Loan Document (including, but not limited to, any such costs or expenses
arising from or relating to (A) collection or enforcement of an outstanding Loan
or any other amount owing hereunder or thereunder by the Lender, and (B) any
litigation, proceeding, dispute, work-out, restructuring or rescheduling related
in any way to the Loan Agreement or the Loan Documents), and (c) enforcement of
any Guaranties or any Security Document. The Amendment shall be governed by,
construed and enforced in accordance with the laws of the

                                       12
<Page>

State of New York, without regard or reference to its choice of law principles.
Except as expressly modified or amended herein, the Original Loan Agreement and
each of the other Loan Documents to which the Borrower is a party is hereby
restated, ratified and confirmed and shall remain in full force and effect.

                                       13
<Page>

         IN WITNESS WHEREOF, the parties hereto, by their officers thereunto
duly authorized, have caused this Third Amendment to Term Loan Agreement to be
duly executed and delivered as of the date first above written.

                                       HARDINGE INC.

                                       By: /s/ Thomas T. Connelly
                                          --------------------------------------
                                               Thomas T. Connelly
                                       Title:  Treasurer

                                       Address for Notices:
                                       Hardinge Inc.
                                       One Hardinge Drive
                                       Elmira, New York 14902
                                       Attn: Treasurer
                                       Telephone:  (607) 734-2281
                                       Telecopier: (607) 734-5517

                                       with a copy to:
                                       Sayles & Evans
                                       One West Church Street
                                       Elmira, New York 14901
                                       Attn:  J. Philip Hunter, Esq.
                                       Telephone:  (607) 734-2271
                                       Telecopier: (607) 734-1754

                                       KEYBANK NATIONAL ASSOCIATION

                                       By: /s/ Albert G. White, III
                                          --------------------------------------
                                               Albert G. White, III
                                       Title: Senior Vice President

                                       Address for Notices:
                                       1200 Bausch & Lomb Plaza
                                       Rochester, New York 14604
                                       Attn:  Albert G. White III
                                                Senior Vice President, Corporate
                                                Banking and Finance Group
                                       Telephone:  (716) 238-4143
                                       Telecopier: (716) 238-4142

                                       14
<Page>

                                       with a copy to:
                                       Boylan, Brown, Code, Vigdor & Wilson, LLP
                                       2400 Chase Square
                                       Rochester, New York 14604
                                       Attn:  Corporate Banking Group
                                       Telephone:  (716) 232-5300
                                       Telecopier: (716) 232-3528

                                     Term Loan Committed Amount: $23,000,000

                                       15

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