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                                                                    Exhibit 10.3
                AMENDED AND RESTATED TERM LOAN I PROMISSORY NOTE

                    Reference is made to the $5,000,000 Term Loan Promissory
                    Note dated October 23, 1995 of DeVlieg-Bullard, Inc. and
                    payable to The CIT Group/Business Credit, Inc. (the "October
                    Note"). To the extent that this Amended and Restated Term
                    Loan I Promissory Note amends the October Note, the October
                    Note is amended. To the extent this Amended and Restated
                    Term Loan I Promissory Note restates the October Note, the
                    October Note is restated.


                                                              New York, New York
$5,000,000                                                      January 17, 1997



     FOR VALUE RECEIVED, the undersigned, DeVlieg-Bullard, Inc., a Delaware
corporation (herein the "Borrower"), promises to pay to the order of The CIT
Group/Business Credit, Inc. ("CITBC"), at CITBC's offices located at 1211 Avenue
of the Americas, New York, NY 10036, in lawful money of the United States of
America and in immediately available funds, the principal amount of Five Million
Dollars ($5,000,000) in fifty-eight (58) equal principal installments of
Eighty-Five Thousand Seven Hundred Fourteen Dollars and Thirty Cents
($85,714.30) each payable monthly on the last business day of each month
commencing November 30, 1995 and one (1) final installment of the remaining
principal amount outstanding, plus all other amounts having accrued and
outstanding, payable on August 31, 2000.

     The Borrower further agrees to pay interest at said office, in like money,
on the unpaid principal amount owing hereunder from time to time from the date
hereof on the date and at the rate specified in the Financing Agreement referred
to below. Any amount of principal hereof which is not paid when due, whether at
stated maturity, by acceleration, or otherwise, shall bear interest from the
date when due until said principal amount is paid in full,







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payable on demand at a rate per annum equal at all times to the Default Rate of
Interest.

     If any payment on this Amended and Restated Term Loan I Promissory Note
(the "Note") becomes due and payable on a day other than a business day, the
maturity thereof shall be extended to the next succeeding business day, and with
respect to payments of principal, interest thereon shall be payable at the then
applicable rate during such extension.

     This Note is one of the Term Loan I Promissory Notes referred to in the
Amended and Restated Financing and Security Agreement, dated as of January 17,
1997, between the Borrower and CITBC (as it may be amended, modified or
supplemented from time to time, the "Financing Agreement") and is subject to,
and entitled to, all provisions and benefits thereof and is subject to optional
and mandatory prepayment, in whole or in part, as provided therein. Terms
defined in the Financing Agreement are used herein with their defined meanings
unless otherwise defined herein.

     Upon the occurrence of any one or more of the Events of Default specified
in the Financing Agreement or upon termination of the Financing Agreement, all
amounts then remaining unpaid on this Note may become, or be declared to be
immediately due and payable, all as provided in the Financing Agreement.

     This Note is secured by certain Loan Documents, including the Financing
Agreement, and is guaranteed as provided in the Financing Agreement, reference
to which is hereby made for a description of the Collateral and guarantees
provided for under such Loan Documents and the rights of CITBC with respect to
such Collateral and guarantees.

     The Borrower hereby waives presentment, notice of dishonor, protest and any
other notice or formality with respect to this Amended and Restated Term Loan I
Promissory Note.






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     THIS NOTE SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.



                                  DEVLIEG-BULLARD, INC.


                                  By /s/ William O. Thomas
                                     ----------------------------------
                                     Name:  William O. Thomas
                                     Title: President & Chief Executive
                                            Officer






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