Innovative Menu Selections with Mainstream Appeal. We offer a freshly prepared menu that combines recognizable American selections with a flavorful twist, a variety of distinctive internationally influenced cuisines, signature seafood dishes, and award-winning sushi to appeal to a wide range of tastes, preferences, and price points. We prepare our dishes from original recipes with generous portions and creative and appealing presentations that adhere to standards that we believe are much closer to fine dining than typical casual dining. Our more than 40 proprietary sauces and dressings further differentiate our menu items and allow our guests to experience new foods and tastes as well as share their everyday favorite choices with others

EX-10.1.B 3 p70737exv10w1wb.txt EX-10.1.B EXHIBIT 10.1(b) KONA GRILL LETTERHEAD Donald Dempsey 13785 Wood Lane Minnetonka, Minnesota 55305 RE: AMENDED EMPLOYMENT TERMS Dear Don: The purpose of this letter is to amend your employment terms as set forth in your Employment Letter (the "Employment Letter") between Kona Grill, Inc., a Delaware corporation (the "Company") and you as the ("Executive"): Section 7 Termination of the Employment Letter shall be deleted and replaced in its entirety with the following: 7. Termination. It is agreed that Executive is employed at will and may be terminated with or without cause at any time upon ninety (90) days prior written notice. Upon termination (except for Cause as defined below) Executive shall receive a one-year severance payment equal to 12 months base salary, a pro rata portion of annual bonus and a pro rata portion of stock options for the year terminated shall vest upon such termination, and payment of any COBRA amount due for the provision of any and all health benefits provided to the Executive and Executive's family immediately prior to his termination for a period of up to 18 months. For purposes of this Letter Agreement, the term "Cause" shall mean (i) an action of the Executive which constitutes a willful and material breach of, or willful and material failure or refusal (other than by reason of his disability or incapacity) to perform his duties under this Agreement that is not cured within forty-five (45) days after receipt by the Executive of written notice of stone, (ii) fraud, embezzlement or misappropriation of funds during the Executive's employment with the Company, or (iii) a conviction of any crime during Executive's employment with the Company which involves dishonesty or a breach of trust or involves the Company or its executives. Any termination for Cause shall be made by written notice to the Executive, which shall set forth in reasonable detail all acts or omissions upon which the Company is relying for the termination. The Executive shall have the right to address the Company's board of directors regarding the acts or omissions set forth in the notice of termination. Upon any termination pursuant to this Section 7, the Company shall pay to the Executive any due and unpaid compensation (including any bonus compensation earned but unpaid) and earned but unused vacation time through the date of termination. KONA GRILL, INC. By: /s/ Marcus Jundt --------------------------------- Marcus Jundt Chairman By: /s/ Donald Dempsey --------------------------------- Donald Dempsey Executive