On March 11, 2009, the Compensation Committee of the Board of Directors of Hardinge Inc. ("Hardinge" or the "Company") recommended to the independent members of the Board of Directors terms and conditions for 2009 bonuses (payable in 2010) under the Company's Cash Incentive Plan (the "2009 Bonus Plan"). The independent directors adopted the Compensation Committee's recommendations.

Participants in the 2009 Bonus Plan include Richard L. Simons, President and Chief Executive Officer, Edward J. Gaio, Vice President and Chief Financial Officer, and Douglas C. Tifft, Senior Vice President - Administration. Each participant will be eligible to earn a bonus based on the Company's performance against an established objective for the Company's earnings before interest, depreciation and amortization for 2009 ("EBIDA"). The bonuses are payable in shares of the Company's common stock. Target bonuses payable to the participants upon Hardinge's achievement of the established EBIDA objective are as follows:

                    Target Bonus
Name                 (# shares)
Richard L. Simons   43,000 shares
Edward J. Gaio      23,500 shares
Douglas C. Tifft    17,175 shares

Bonuses may be less than the target bonuses, proportionately, to the extent the Company's actual EBIDA is less than the established EBIDA objective, provided, however, that no bonuses will be paid if the Company achieves less than 20% of the EBIDA objective. Bonuses cannot exceed the target bonuses under any circumstances. In addition, the independent directors retain the discretion to adjust or eliminate the bonuses based on individual participant and Company performance considerations. Bonuses under the 2009 Bonus Plan, if awarded, will be paid in 2010 based on the final audited performance of the Company in 2009.