Document:

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                                                                    EXHIBIT 10.3

                        FIRST AMENDMENT TO LOAN AGREEMENT

                                                         As of November 12, 2001

         THIS FIRST AMENDMENT TO THE LOAN AGREEMENT dated as of April 30, 2001
(the "Amendment") is entered into as of November 12, 2001 by and among Samuels
Jewelers, Inc. as Borrower (the "Borrower"), the lenders party thereto (the
"Lenders") and DDJ Capital Management LLC as agent for the Lenders (the
"Agent"). All capitalized terms used in this Amendment shall have the meanings
given to them in the Loan Agreement (as defined below) unless specifically
defined herein.

         WHEREAS, Borrower, Lenders and Agent are parties to that certain Loan
Agreement, dated as of April 30, 2001 (the "Loan Agreement"), pursuant to which
Lenders have made certain credit available to and on behalf of Borrower and to
secure the obligations outstanding under the Loan Agreement;

         WHEREAS, the obligations of Borrower to Lenders are secured by a lien
in substantially all of the assets of Borrower pursuant to that certain Security
Agreement by and between Borrower and Agent on behalf of Lenders (the "Security
Agreement" and, together with the Loan Agreement and the other documents and
instruments executed in connection therewith, the "Loan Documents");

         WHEREAS, Borrower, Lenders and Agent are also parties to that certain
Loan and Security Agreement dated as of October 1, 2001 (the "Senior Loan
Agreement"), pursuant to which Lenders have made certain credit available to and
on behalf of Borrower and to secure the obligations outstanding under the Senior
Loan Agreement;

         WHEREAS, Lenders executed that certain Intercreditor and Subordination
Agreement, dated as of October 1, 2001 (the "Subordination Agreement"), whereby
Lenders agreed that the obligations incurred pursuant to the Loan Agreement are
subordinate in right of payment to the prior payment in full of all of the
obligations incurred pursuant to the Senior Loan Agreement;

         WHEREAS, Borrower intends to enter into supply agreements (the "Supply
Agreements") with certain suppliers of inventory and their affiliates (the
"Suppliers");

         WHEREAS, in consideration for the Supply Agreements, Borrower intends
to grant the Suppliers a security interest in substantially all of the assets of
Borrower;

         WHEREAS, the Suppliers and Lenders intend to enter into an
Intercreditor and Subordination Agreement dated as of November 12, 2001, which
will govern the priorities of the Lenders and the Suppliers;

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         WHEREAS, Section 10.1 permits any term of the Loan Agreement or of any
other instrument related thereto to be amended upon the written consent of
Borrower and the Majority Lenders, except as otherwise expressly set forth in
the Loan Agreement which exception or exceptions do not exist as it relates to
this Amendment;

         WHEREAS, Borrower, Lenders and Agent wish to amend the Loan Agreement
to authorize Borrower to enter into certain Supply Agreements and Security
Agreements with the Suppliers, substantially in the form of the agreements
attached hereto as Exhibits A and B, respectively, and any other necessary
documents related thereto;

         NOW, THEREFORE, in consideration of the promises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereby amend the Loan Agreement as follows:

         1.  AMENDMENTS

         1.1. The definition of "Permitted Indebtedness" set forth in Section
1.1 of the Loan Agreement is hereby amended to delete the punctuation from the
end of the last clause of that definition and add the following:

                  "; and (v) Indebtedness as set forth in Schedule P-1."

         1.2. Section 5.11(a) is hereby amended by deleting clause (iii) therein
and replacing it with the following:

                  "(iii) liens, charges, and encumbrances described in Schedule
                  5.11(a) or Schedule P-1 and permitted by Section 8.2 hereof,"

         1.3 Section 8.2 is hereby amended by adding subsection (g) thereto to
permit the following liens and security interests:

                  "(g) liens and security interests with respect to Indebtedness
                  described in Schedule P-1"

         1.4 Schedule P-1, attached hereto as Exhibit C, is hereby included as
an additional Schedule to the Loan Agreement.

         2. REPRESENTATIONS AND WARRANTIES. Borrower hereby affirms to Lenders
and Agent that all of Borrower's representations and warranties set forth in the
Loan Agreement are true, complete and accurate in all respects as of the date
hereof (except to the extent such representations and warranties relate solely
to an earlier date).

         3. DEFAULTS. Borrower hereby affirms to Lenders and Agent that no
Default or Event of Default exists as of the date hereof.

         4. COSTS AND EXPENSES. Borrower shall pay to Agent all of Agent's
out-of-pocket costs and expenses (including, without limitation, the reasonable
fees and expenses of its counsel, which counsel may include any local counsel
reasonably deemed necessary, search fees,

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filing and recording fees, documentation fees, appraisal fees, travel expenses,
and other fees) arising in connection with the preparation, execution, and
delivery of this Amendment and any related documents.

         5. EFFECTIVENESS; CONDITION TO EFFECTIVENESS. This Amendment shall
become effective as of the date first set forth above, upon execution hereof by
the Lenders, the Agent and the Borrower.

         6. OBLIGATIONS IN FULL FORCE AND EFFECT Except as herein amended and
modified, the Loan Agreement and the Subordination Agreement shall remain in
full force and effect.

         7. COUNTERPARTS. This Amendment may be executed in counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same document.

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         IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date and year first written above.

                                 SAMUELS JEWELERS, INC.

                                 By:  /s/ Randy McCullough
                                     -------------------------------------------
                                 Name:   Randy McCullough
                                 Title:  President & CEO

                                 DDJ CAPITAL MANAGEMENT, LLC

                                 By:  /s/  David J. Breazzano
                                     -------------------------------------------
                                 Name:  David J. Breazzano
                                 Title: Member

                                 B III CAPITAL PARTNERS:

                                 By:  DDJ Capital III, LLC, its General Partner
                                 By:  DDJ Capital Management, LLC, Manager

                                 By:  /s/  David J. Breazzano
                                     -------------------------------------------
                                 Name:  David J. Breazzano
                                 Title: Member

                                 B III-A CAPITAL PARTNERS, L.P.
                                 By:  GP III-A, LLC, its General Partner
                                 By:  DDJ Capital Management, LLC, Manager

                                 By:  /s/  David J. Breazzano
                                     -------------------------------------------
                                 Name:  David J. Breazzano
                                 Title: Member

                                       4<PAGE>

                                                                    EXHIBIT 10.1

                            NON-COMPETITION AGREEMENT

         This Non-Competition Agreement (the "Agreement") is entered into as of
December 31, 2001 by and among Midwest Dental, Inc., a Minnesota corporation
(the "Buyer"), Midwest Dental Management, Inc., a Wisconsin corporation ("MD
Management"), Midwest Dental Care, Mondovi, Inc., a Wisconsin corporation ("MD
Mondovi"), Midwest Dental Care, Sheboygan, Inc., a Wisconsin corporation ("MD
Sheboygan", Midwest Dental Plan, Ltd., a Wisconsin corporation ("MD Plan") and
Monarch Dental Corporation, a Delaware corporation (the "Seller").

                                   BACKGROUND

         A. The Buyer has agreed to purchase all of the issued and outstanding
capital stock of MD Management, MD Mondovi, and MD Sheboygan from the Seller
pursuant to the Stock Purchase Agreement dated December 31, 2001 (the "Stock
Purchase Agreement"), by and among the Buyer, the Seller, MD Management, MD
Mondovi, and MD Sheboygan.

         B. MD Management owns 79% of the issued and outstanding capital stock
of MD Plan. MD Management, MD Mondovi, MD Sheboygan and MD Plan are referred to
in this Agreement collectively as the "Acquired Companies."

         C. It is a condition to the obligations of the Buyer to consummate the
transactions contemplated by the Stock Purchase Agreement that the Seller enter
into this Agreement and provide the Buyer Group (as defined below) the
assurances set forth in this Agreement.

         NOW THEREFORE, in consideration of the foregoing and other mutual
covenants and obligations hereinafter set forth, the Buyer and the Seller agree
as follows:

1.       Defined Terms. The following terms will have the meanings indicated for
         all purposes of this Agreement:

         (a)      "Business" means the business of providing dental services
                  (including, without limitation, periodontic and orthodontic
                  services), managing dental practices, operating dental
                  laboratories, and providing any other dental related services
                  offered by the Acquired Companies at any time during the
                  one-year period immediately preceding the date hereof.

         (b)      "Buyer Group" means the Buyer and the Acquired Companies.

         (c)      "Restrictive Period" means the period commencing on the date
                  hereof and ending on the seventh anniversary of the date
                  hereof.

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         (d)      "Territory" means the States of Wisconsin and Minnesota
                  (excluding Hennepin County, Minnesota).

2.       Non-Competition. During the Restrictive Period, the Seller will not
         directly or indirectly engage in the Business in the Territory,
         including, without limitation, as a stockholder, general partner,
         limited partner, manager, member, consultant, agent or joint venturer
         in any other business. Notwithstanding the foregoing, this Section 2
         will not be binding upon or enforceable against any successor to, or
         future acquiror of, the Seller if such successor or future acquiror of
         the Seller conducts the Business in the Territory prior to its
         acquisition of the Seller.

3.       Non-Solicitation.

         (a)      During the Restrictive Period, the Seller will not directly or
                  indirectly solicit any customer of the Acquired Companies for
                  the purpose of providing or services for or on behalf of such
                  customer which are competitive with the Business in the
                  Territory, or in any way cause such customer to discontinue or
                  reduce its business relationship with the Acquired Companies.

         (b)      During the Restrictive Period, the Seller will not directly or
                  indirectly (i) interfere with the contractual relations
                  between any member of the Buyer Group and any of its employees
                  employed in the Territory; or (ii) employ or cause to be
                  employed in any capacity or retain or cause to be retained as
                  a consultant any person who was employed as an officer or
                  dentist by any Acquired Company during the twelve (12) month
                  period ending on the date hereof.

         (c)      Notwithstanding the foregoing, this Section 3 will not be
                  binding upon or enforceable against any successor to, or
                  future acquiror of, the Seller if such successor or future
                  acquiror of the Seller conducts the Business in the Territory
                  prior to its acquisition of the Seller.

4.       Confidential Information. All knowledge and information not already
         available to the public which the Seller has acquired with respect to
         private or confidential matters of the Acquired Companies (such as
         those concerning sales, costs, profits, organizations, customer lists,
         pricing methods, etc.) will be regarded by the Seller as strictly
         confidential and will not be disclosed to any person, corporation or
         firm. All of the foregoing knowledge and information are collectively
         termed "Confidential Information." The Seller's obligations under this
         paragraph will not apply to any information which (i) is or becomes
         known to the general public under circumstances involving no breach by
         the Seller of the terms of this paragraph, (ii) is approved for release
         by written authorization of the Buyer's Board of Directors, or (iii)
         the Seller is obligated by law, rule, regulation or order to disclose.

5.       Remedies. The Seller acknowledges that the restrictions set forth in
         paragraphs 1, 2 and 3 are reasonably necessary to protect the
         legitimate business interests of the Buyer Group. It is understood that
         if the Seller violates its obligations under paragraphs 1, 2 or 3
         hereof,

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         the Buyer Group will suffer irreparable harm for which a recovery of
         money damages would be an incomplete and inadequate remedy. It is
         therefore agreed that the Buyer Group, in addition to any remedies at
         law, will be entitled, as a matter of right, in any court of competent
         jurisdiction, to a preliminary injunction restraining the Seller
         pending litigation, as well as a permanent injunction upon final
         determination thereof, from violating this Agreement, and the Seller
         waives the requirements that the Buyer Group provide any bond as a
         condition precedent to obtaining such relief.

6.       Severability. The parties intend that the covenants and agreements
         contained in this Agreement will be deemed to be a series of separate
         covenants and agreements, one for each and every state of the United
         States included in the Territory. If, in any judicial proceeding, a
         court refuses to enforce any of the separate covenants deemed included
         in such action, then such unenforceable covenants will be deemed
         eliminated from the provisions of this Agreement for the purpose of
         such proceeding to the extent necessary to permit the remaining
         covenants to be enforced in such proceeding. Further, in the event that
         any provision is held to be overbroad as written, such provision shall
         be deemed amended to narrow its application to the extent necessary to
         make the provision enforceable according to applicable law and enforced
         as amended.

7.       Binding Effect. The covenants and agreements of paragraphs 1, 2 and 3
         will not be terminated by the voluntary dissolution of any or all
         members of the Buyer Group (or any parent, subsidiary or successor
         thereto) or merger whereby any or all members of the Buyer Group (or
         any parent, subsidiary or successor thereto) is not the surviving or
         resulting corporation, or any transfer of substantially all the assets
         of any or all members of the Buyer Group, unless no transferee or
         successor continues to carry on the Business. In the event of any such
         merger or consolidation or transfer of assets, the provisions of this
         Agreement will inure to the benefit of and be binding upon the
         surviving or resulting corporation or the corporation to which such
         assets are transferred.

8.       Entire Agreement. From and after the date of this Agreement the terms
         and provisions of this Agreement constitute the entire agreement
         between the parties and this Agreement supersedes any previous oral or
         written communications, representations or agreements with respect to
         the subject matter hereof.

9.       Waiver and Interpretation. The waiver by either party of a breach of
         any provision of this agreement by the other party shall not operate or
         be construed as a waiver of any subsequent breach by the breaching
         party. No waiver shall be valid unless in writing and signed by the
         party providing such waiver.

10.      Applicable Law. All questions pertaining to the validity, construction,
         execution and performance of this agreement shall be construed and
         governed in accordance with Minnesota law without regard to conflict of
         law principles of any jurisdiction.

11.      Notice. Any notice required or desired to be given under this Agreement
         will be deemed given if it complies with the notice requirements set
         forth in the Stock Purchase Agreement.

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12.      Counterparts. This Agreement may be executed in one or more
         counterparts, and will become effective when one or more counterparts
         have been signed by each of the parties.

                                     *******

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         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first set forth above.

THE BUYER GROUP:                             THE SELLER:

MIDWEST DENTAL, INC.                         MONARCH DENTAL CORPORATION

By:  /s/ Jeffrey W. Moos, DDS                By:  /s/ Lisa K. Peterson
     ------------------------                     --------------------
   Its: President                               Its:  Chief Financial and
        --------------------                          Administrative Officer
                                                      --------------------------
MIDWEST DENTAL MANAGEMENT, INC.

By:  /s/ Jeffrey W. Moos, DDS
     --------------------------
   Its:
        -----------------------

MIDWEST DENTAL CARE,
MONDOVI, INC.

By:  /s/ Jeffrey W. Moos, DDS
     --------------------------
   Its:
        -----------------------

MIDWEST DENTAL CARE,
SHEBOYGAN, INC.

By:  /s/ Jeffrey W. Moos, DDS
     --------------------------
   Its:
        -----------------------

MIDWEST DENTAL PLAN, LTD.

By:  /s/ Jeffrey W. Moos, DDS
     --------------------------
   Its:
        -----------------------

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