<PAGE>   1
                                                                    EXHIBIT 10.3

                          AMENDMENT TO LOAN DOCUMENTS

         THIS AGREEMENT made effective as of June 28, 1998, by and among PNC
BANK, NATIONAL ASSOCIATION, successor by merger to PNC BANK, OHIO, NATIONAL
ASSOCIATION ("Lender"), STEPHEN D. KING, an individual and resident of the
State of Ohio (the "Guarantor"), and CAFE ODYSSEY, INC., formerly known as
HOTEL DISCOVERY, INC., a Minnesota corporation, as successor by merger to HOTEL
MEXICO, INC., an Ohio corporation formerly known as "KRLP ACQUISITION CORP."
(the "New Borrower").

                                    RECITALS

A.       Lender extended a secured loan in the amount of $1,000,000.00 (the
         "Loan") to the Kenwood Restaurant Limited Partnership, an Ohio
         corporation (the "Original New Borrower") with respect to certain
         premises, more particularly described in Schedule "A" hereto and made
         a part hereof (the "Property"), the obligations of which were
         guaranteed by the Guarantor and which loan is described herein as the
         "Loan."

B.       The Loan is now evidenced and/or secured by the documents listed in
         Schedule B hereto (collectively, the "Loan Documents"), of which
         Stephen D. King is the Guarantor pursuant to a Guarantee dated October
         9, 1996 and identified in Schedule B hereto. All terms used herein,
         but not defined, shall have the same definitions as used in the Loan
         Agreement identified in Schedule "B" hereto.

C.       The Original New Borrower transferred all of its right, title and
         interest in the Property to Hotel Mexico, Inc. ("HMI").

D.       Pursuant to certain Assignment and Assumption of Lease dated December
         15, 1996 by and between Original New Borrower and HMI, and filed of
         record in Official Record Volume 7268, Page 1034, in the Hamilton
         County, Ohio Recorder's Office, HMI assumed all of the obligations of
         the Original New Borrower under the Loan.

E.       On or about August 1, 1997, HMI merged into the New Borrower, with New
         Borrower being the surviving corporation under such merger.

F.       Lender, New Borrower and Guarantor entered into a certain Second Loan
         Assumption dated as of October 16, 1997, under which Lender approved
         of said merger between HMI and New Borrower, New Borrower assumed
         HMI's obligations under the Loan Documents, and the Loan Documents
         were amended as provided therein.

G.       New Borrower recently changed its name and is in the process of making
         a name change filing with the Ohio Secretary of State.

H.       New Borrower is in default under the Loan Documents and has requested
         Lender to forebear its rights and remedies against New Borrower and
         Guarantor as a result of such default, and to modify certain of its
         obligations contained therein, and Lender has agreed to give such



<PAGE>   2



         forbearance and to approve such modifications in accordance with, but
         subject to, the terms and conditions of this Agreement.

         NOW, THEREFORE, in consideration of the premises and other good and
         valuable consideration, the receipt and sufficiency of which are
         hereby acknowledged, the parties hereto agree as follows:

1.       Acknowledgement of Loan Terms
         New Borrower acknowledges the following:

         1.1      As of the effective date of this Agreement, New Borrower is
                  currently indebted to Lender in the outstanding principal
                  amount of $883,411.58 under the Loan.

         1.2      The current annual rate of interest payable under the Loan is
                  9.06% per annum and shall remain at such rate until maturity.

         1.3      The monthly installment payment of principal currently in
                  effect under the Loan is acknowledged to be $5,785.00, plus
                  accrued interest.

         1.4      The Loan Documents are valid and binding obligations of the
                  New Borrower and Guarantor, as applicable, and are
                  enforceable in accordance with their terms.

2.       Acknowledgement of Loan Defaults
         New Borrower acknowledges that New Borrower and Guarantor are
         currently in default of the Loan Documents as follows:

         2.1      The incurrence of indebtedness pursuant to that certain
                  financing identified in the loan documentation contained in
                  Schedule 2.1 attached hereto and made a part hereof with
                  respect to its restaurant located at the Mall of America in
                  Minneapolis, Minnesota (the "Mall of America Financing") in
                  contravention of Section 7.1 contained in the Loan Agreement.

         2.2      The repayment of certain indebtedness owed by New Borrower to
                  Guarantor in the amount of approximately $525,110.00 and
                  Guarantor's failure to pay such sum to Lender, in
                  contravention of Section 6 contained in the Guarantee and the
                  other Loan Documents.

3.       Amendment to Loan Agreement
         The Loan Documents are hereby amend as follows:


                                       2

<PAGE>   3



         3.1      Section 6.8.1 of the Loan Agreement is hereby revised to read
                  as follows:

                  Monthly statements. Furnish Lender within twenty days (20)
                  after the end of each fiscal thirty (30) day period with
                  internally prepared financial statements of New Borrower with
                  respect to such thirty (30) day period, which shall be in
                  Proper Form and shall contain such information as Lender may
                  request, including without limitation, operating statements
                  of the Project, cash flow statements, balance sheet, profit
                  and loss statements.

         3.2      Section 6.28 of the Loan Agreement is hereby revised to read
                  as follows:

                  Maintenance of cash. Shall maintain at all times cash under
                  its exclusive control, not subject to any pledge, security or
                  similar arrangement, of $1,000,000.00, or more.

         3.3      The following section is hereby incorporated as Section 6.29
                  into the Loan Agreement:

                  Tenant Finish for Mall of America Lease. Shall furnish to
                  Lender, in Proper Form, documentation which evidences receipt
                  of payment of the sum of $1,600,000.00 (the "Tenant Finish"),
                  from the Lessor pursuant to Section 24.20 of that certain
                  Lease dated by and between New Borrower, as Lessee, and Mall
                  of America Company, a Minnesota General Partnership, as
                  Lessor, affecting its restaurant in Mall of America,
                  Minneapolis, Minnesota (the "Mall of America Lease") no later
                  than fourteen (14) days after its receipt of such sum.

         3.4      The maturity date of the Term Note is hereby revised from
                  "February 1, 1999" to "November 1, 1998.

4.       Forbearance
         4.1      Except as otherwise provided in this Agreement, PNC shall not
                  commence any adversarial legal proceeding against the New
                  Borrower or the Guarantor or against any of the Property or
                  other assets of New Borrower as a result of the occurrence of
                  any of the defaults provided in Section 2 hereof, and PNC
                  shall conditionally waive such defaults, except that this
                  forbearance and conditional waiver shall automatically
                  terminate, and shall be of no further force and effect as a
                  result of any of the following:

                  4.1.1    An Event of Default under any of the Loan Documents,
                           including without limitation, any additional
                           defaults under the provisions of the Loan Documents
                           specified in Section 2 hereof;


                                       3

<PAGE>   4



                  4.1.2    If Lender reasonably deems itself insecure as a
                           result of facts or circumstances not known to Lender
                           as of the date of this Agreement or if any other
                           event, matter or condition shall occur, arise or
                           exist creating in Lender a reasonable cause for
                           concern that any of its rights or interests may be
                           materially and adversely affected by any delay in
                           enforcing its remedies for any Event of Default,
                           including without limitation, any transfer by the
                           New Borrower or Guarantor that (i) its trustee in
                           bankruptcy could challenge under 11 U.S.C. Sections 
                           544, 547 or 548 if the New Borrower or Guarantor
                           were insolvent and a petition were filed by or
                           against either such party in bankruptcy, (ii)
                           constituted a distribution to its shareholders or
                           (iii) compensated or benefited any insider (as
                           defined in Section 101 of the United States
                           Bankruptcy Code) in  excess of a reasonable salary
                           for services actually performed or was more
                           favorable than or in consistent with past practices;

                  4.1.3    Lender determines that there are facts or
                           circumstances not directly known to Lender as to the
                           date of this Agreement which constitute a material
                           adverse change in the financial condition of New
                           Borrower; or

                  4.1.4    November 1, 1998.

         4.2      This forbearance and conditional waiver by Lender are
                  expressly limited to the purposes specified in Section 4.1
                  hereof, and do not constitute a forbearance or waiver of any
                  additional defaults by New Borrower under the Loan Documents
                  specified in Section 2 hereof, or a forbearance or waiver of
                  any other Event of Default under the Loan Documents.
                  Furthermore, this forbearance and conditional waiver by
                  Lender shall not be deemed to amend, modify or extend any of
                  the obligations of either New Borrower or Guarantor under the
                  Loan Documents.

         4.3      New Borrower and Guarantor covenant and agree that if any
                  petition in bankruptcy is filed (voluntary or involuntary)
                  with respect to the New Borrower and/or the Guarantor, Lender
                  shall be entitled, and the New Borrower shall consent, to
                  immediate and complete relief from any automatic stay or
                  moratorium arising out of or related to the bankruptcy
                  petition and Lender shall be permitted to proceed to protect
                  and enforce its rights or remedies either by suit in equity
                  or by action at law, or both. New Borrower and Guarantor
                  covenant and agree to join with Lender in filing the
                  appropriate petitions or requests for relief required to
                  obtain the relief referred to herein. In addition, in the
                  event of any such bankruptcy, New Borrower waives its
                  exclusive rights under 11 U.S.C. Section 1121 to file a plan 
                  of reorganization during the 120 day period after the date of
                  entry of an order for relief under chapter 11 of the United
                  States Bankruptcy Code and further waives any exclusive right
                  it may have under the United States Bankruptcy Code to secure
                  acceptance of any plan filed by it. New Borrower and
                  Guarantor hereby stipulate, acknowledge and agree that,
                  irrespective of the waiver herein, in any proceeding filed by
                  or against the New

                                       4

<PAGE>   5



                  Borrower, "cause" within the meaning of 11 U.S.C. Section
                  1121(d) exists for reducing to zero, on the request of
                  Lender, the 120 day and 180 day exclusivity periods
                  prescribed for under 11 U.S.C. Section 1121 with respect to 
                  the filing by the New Borrower of a plan and securing
                  acceptance thereof and the New Borrower shall consent and
                  hereby does consent to a request by Lender if it shall so
                  elect, of the court to a reduction of such exclusivity
                  periods such that in a Chapter 11 case brought by or against
                  the New Borrower, Lender shall have the right to file and
                  seek to secure acceptance of a plan of reorganization at any
                  time after the date of the order for relief under such
                  chapter, whether or not the New Borrower at any time files a
                  plan in such proceeding. No provision hereof shall preclude
                  the New Borrower from filing a plan of reorganization under
                  chapter 11 of the United States Bankruptcy Code.

         4.4      New Borrower and Guarantor acknowledge that Lender has been
                  induced to enter into this Agreement because New Borrower and
                  Guarantor have represented to Lender, and Lender agrees, that
                  the interests of all parties hereto and the other creditors
                  of New Borrower shall be best served without Bankruptcy Court
                  proceedings. Accordingly, the parties hereto have bargained
                  in good faith for the terms of the forbearance and
                  conditional waiver contained herein and New Borrower and
                  Guarantor agree that the filing of any Chapter 11 Bankruptcy
                  Petition with respect to New Borrower would be in bad faith,
                  and in abrogation of this Agreement and should be deemed to
                  have been so filed by the Bankruptcy Court, justifying
                  dismissal of such bankruptcy case or proceeding, or
                  enforcement of the relief from stay and waiver of exclusivity
                  provisions set forth above, and further, justifying
                  enforcement of the bankruptcy guarantee executed and
                  delivered concurrently with this Agreement by Guarantor.
                  Nothing in this Agreement shall be deemed in any way to limit
                  or restrict any of Lender's rights to seek in Bankruptcy
                  Court or any other court of competent jurisdiction, any
                  relief Lender may deem appropriate in the event that a
                  voluntary or involuntary petition under any title of the
                  United States Bankruptcy Code is filed by or against New
                  Borrower.

5.       Release
         New Borrower and Guarantor hereby release Lender and its employees,
         agents and counsel from all claims, losses, damages and expenses,
         including but without limitation reasonable attorneys fees, arising
         out of or relating to the Loan, Lender's administration of the Loan
         and negotiation of this Agreement.

6.       Inducements
As an inducement for Lender to enter into this Agreement, New Borrower has paid
to Lender the sum of $300,000.00 to be used to reduce the outstanding principal
under the Loan, and has agreed to reimburse Lender for all of its reasonable
attorneys fees and other costs associated with the Loan through this date, both
of which sums have been paid to Lender concurrent with the execution of this

                                       5

<PAGE>   6



Agreement. As a further inducement for Lender to enter into this Agreement, New
Borrower and Guarantor represent, warrant and state to Lender the following:

         6.1      The Loan Documents constitute the valid, legal and binding
                  obligations of the New Borrower and Guarantor, as applicable,
                  which are enforceable in accordance with their terms; and the
                  liens and security interests of the security documents
                  comprising the Loan Documents are valid and substituting
                  liens and interests against the collateral described therein,
                  first in priority of title, except for matters disclosed in
                  that certain Loan Policy of Title Insurance No. 36 0138 010
                  00004177 issued by Chicago Title Insurance Company to Lender.

         6.2      There are no claims, causes of action, defenses or rights of
                  setoff against Lender with respect to the Loan Documents by
                  either of them.

         6.3      Except for the defaults acknowledged in Section 2 hereof, the
                  New Borrower and Guarantor are currently not in default under
                  the Loan Documents and have fully performed all of their
                  respective duties and obligations thereunder through and
                  including the effective date of this Agreement. Furthermore,
                  Lender currently is entitled to enforce all of its rights and
                  remedies against New Borrower and Guarantor under the Loan
                  Documents as a result of the defaults acknowledged in Section
                  2 hereof.

         6.4      This Agreement and the consummation of the transaction
                  contemplated hereby constitute the valid, enforceable and
                  binding obligation of the New Borrower and Guarantor,
                  respectively.

         6.5      Neither the execution of this Agreement nor the consummation
                  of any of the transactions contemplated hereby will
                  constitute a violation of, be in conflict with, or constitute
                  a default under (or with the passage of time or delivery of
                  notice, or both), or will constitute a default under any term
                  or provision of any Agreement which the New Borrower or
                  Guarantor is a party to or bound by.

         6.6      Concurrent with the signature and delivery of this Agreement
                  by the parties hereto, the New Borrower owns full, absolute
                  and complete title to the Property, subject to the lien of
                  the security documents comprising the Loan Documents and the
                  fee simple or reversionary interest of Phillip E. Stephens,
                  Trustee, under the Restaurant Lease.

         6.7      Lender has acted at all times in a fair, reasonable, good
                  faith manner in connection with its administration and
                  enforcement of the Loan Documents, its dealings with the
                  parties hereto with respect to the Loan, and all other
                  transactions related to this Agreement or the Loan.


                                       6

<PAGE>   7



         6.8      New Borrower has adopted the necessary resolution to enter
                  into this Agreement and its signatory to this Agreement is
                  authorized to execute the same and is in good standing with
                  New Borrower.

         6.9      A true, correct and complete copy of the loan documentation
                  evidencing the Mall of America Financing is attached as
                  Schedule 6.9 hereto, and there are no modifications or
                  amendments thereto.

         6.10     A true, correct and complete copy of the Mall of America
                  Lease is attached as Schedule 6.10 hereto, and there are no
                  amendments or modifications thereto.

         6.11     The Mall of America Financing is in full force and effect,
                  New Borrower has received all loan proceeds therefrom and has
                  used the same in the ordinary course of New Borrower's
                  business.

         6.12     The Mall of America Lease is in full force and effect and
                  there is no default thereunder by New Borrower.

         6.13     The Tenant Finish shall be used in New Borrower's ordinary
                  course of business.

         6.14     A true, correct and complete copy of the lease transaction of
                  New Borrower with respect to its restaurant to be located in
                  Denver, Colorado is attached hereto as Schedule 6.14, and
                  there are no amendments or modifications thereto.

         6.15     New Borrower promptly shall file all documentation with the
                  Ohio Secretary of State necessary to reflect New Borrowers'
                  current name in its conduct of business in the State of Ohio,
                  and shall furnish Lender with a certified copy of a name
                  change certificate therefrom. Borrower further shall promptly
                  reimburse Lender for all fees and expenses incurred in the
                  filing of a U.C.C. Financing Statement with the Ohio
                  Secretary to reflect said name change.

         6.16     All of the representations, warranties and other undertakings
                  of New Borrower and Guarantor, respectively, contained in the
                  Loan Documents, except as expressly modified herein, are
                  restated and made effective as of the date of this Agreement.

7.      Notices
Notices to the parties hereto under the Loan Documents shall be sent in the
manner set forth in the Loan Agreement at the following addresses:



                                       7

<PAGE>   8



         If to Lender:              PNC Bank, National Association 201 East 5th
                                    Street Cincinnati, Ohio 45201-1198 Attn:
                                    Katherine Herke Nickel

         with copy to:              Frost & Jacobs LLP
                                    2500 PNC Center
                                    201 East Fifth Street
                                    Cincinnati, Ohio 45201 Attn:   Frederick W.
                                    Kindel

         If to New Borrower:        Cafe Odyssey, Inc.
                                    4801 West 81st Street
                                    Suite 112
                                    Bloomington, Minnesota 55437 Attn: Ronald
                                    K. Fuller

         with copy to:              Maslon Edelman Borman & Brand 3300 Norwest
                                    Center 90 South Seventh Street Minneapolis,
                                    Minnesota 55402-4140 Attn: William M.
                                    Mower, P.A.

         If to Guarantor:           Stephen D. King
                                    8260 North Creek Drive, Suite 140
                                    Cincinnati, Ohio 43235

         with copy to:              Maslon Edelman Borman & Brand 3300 Norwest
                                    Center 90 South Seventh Street Minneapolis,
                                    Minnesota 55402-4140 Attn: William M.
                                    Mower, P.A.

8.       Consent to Jurisdiction; Waiver of Jury Trial
         This Agreement has been executed, delivered and accepted at and will
         be deemed to be made at Cincinnati, Ohio and will be interpreted and
         the rights and liabilities of the party hereto determined in
         accordance with the laws of the State of Ohio, and the New Borrower
         and Guarantor hereby agree that the exclusive jurisdiction of any
         state or federal court located within Hamilton County, Ohio and
         consents that all service of process to New Borrower and Guarantor
         shall be sent in the manner set forth in the Loan Agreement to the
         addresses set forth in Section 7 hereof. Nothing contained herein will
         prevent the Lender from bringing any action or exercising any right
         against any property of the New Borrower within any other

                                       8

<PAGE>   9



         state or nation to enforce any award of judgment obtained in the
         federal or state court located within Hamilton County, Ohio. The New
         Borrower and Guarantor waive any objection based on forum
         non-conveniens and any objection to venue or any other action
         instituted hereunder. The New Borrower and Guarantor and the Lender
         each waive any right to trial by jury in any action or proceeding
         related to this Agreement, the Loan Documents or any transaction
         contemplated in any such documents.

9.       Miscellaneous
         This Agreement may be executed in counterparts. This Agreement,
         together with the Loan Documents, contain the entire agreement among
         the parties hereto and supersedes all discussions, communications,
         documents and other matters furnished among the parties hereto or
         their counsel. The Agreement shall be included in the definition of
         "Loan Documents" as used herein. Notwithstanding anything contained
         herein to the contrary, the liens and security interest of the
         Security Documents comprised in the Loan Documents shall retain their
         original priority of title. In the event one or more provisions
         contained in this Agreement shall for any reason be held invalid,
         legal or unenforceable, in any respect, such invalidity, legality or
         unenforceability shall not affect any other provision of this
         Agreement.

10.      Confession of Judgment. Any attorney-at-law may appear in any court of
         record situated in the county where either New Borrower or Guarantor
         then resides or conducts business, or in the county where New Borrower
         signed this warrant, or in any other court in the State of Ohio or in
         any other state or territory of the United States, at any time after
         the debt hereby evidenced shall become due, either at its stated
         maturity or by acceleration or otherwise, and may waive the issuing
         and service of process and confess judgment against New Borrower,
         jointly and severally, in favor of Lender, for the amount then owing
         herein, together with the costs of suit, and thereupon release all
         errors and waive all rights of appeal and stays of execution. No such
         judgment or judgments against less than all of the undersigned shall
         be a bar to a subsequent judgment or judgments against any one or more
         or the undersigned against whom judgment has not been obtained hereon,
         this being a joint and several warrant of attorney to confess
         judgment.



                                       9

<PAGE>   10



Executed as of July 23, 1998.


================================================================================
WARNING: BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL.  IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.
================================================================================

                                      NEW BORROWER:

                                      CAFE ODYSSEY, INC.  F/K/A 
                                      HOTEL DISCOVERY, INC.



                                      By:             /s/ Stephen D. King 
                                      Print Name:     Stephen D. King 
                                      Title: Chairman

                                       10

<PAGE>   11




================================================================================
WARNING: BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL.  IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.
================================================================================

                                    GUARANTOR:


                                    By:            /s/ Stephen D. King 

                                    Print Name:        STEPHEN D. KING



                                    APPROVED AND AGREED:

                                    LENDER:

                                                  PNC BANK, NATIONAL ASSOCIATION


                                    By:            /s/  Lawrence Reynolds
                                    Title:         Vice President

STATE OF MINNESOTA  )
                    ) SS:
COUNTY OF HENNEPIN  )

         The foregoing instrument was acknowledged before me, a notary public,
this 23rd day of July, 1998 by Stephen D. King, the Chairman of CAFE ODYSSEY,
INC. F/K/A HOTEL DISCOVERY, INC., a Minnesota corporation.

                                      /s/ William M. Mower Notary Public

                                       11

<PAGE>   12



STATE OF MINNESOTA  )
                    ) SS:
COUNTY OF HENNEPIN  )

         The foregoing instrument was acknowledged before me, a notary public,
this 23rd day of July, 1998 by STEPHEN D. KING, a resident of Ohio.


                                      /s/ William M. Mower 
                                      Notary Public


STATE OF OHIO       )
                    ) SS:
COUNTY OF HAMILTON  )

         The foregoing instrument was acknowledged before me, a notary public,
this 24th day of July, 1998 by Lawrence Reynolds, a Vice President of PNC BANK,
NATIONAL ASSOCIATION, a national banking association, on behalf of such
association.


                                      /s/ Frederick W. Kindel 
                                      Notary Public





                                       12