Sample Business Contracts


Employment Agreement - Kona Grill Inc. and Donald Dempsey

Employment Forms

  • Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
  • Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
  • Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
  • Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
  • More Employment Agreements 

                              KONA GRILL LETTERHEAD

Donald Dempsey
13785 Wood Lane
Minnetonka, Minnesota 55305

            RE:   EMPLOYMENT TERMS

Dear Don:

      The purpose of this letter is to set forth the Employment Terms regarding
your employment by Kona Grill, Inc., a Delaware corporation (the "Company") and
you as the ("Executive").

      1.    Duties. Effective May 1, 2004, Executive shall be appointed by the
            Board as the President and Chief Executive Officer of the Company.

      2.    Term. Executive shall be employed subject to the election of both
            parties.

      3.    Compensation. Executive's base salary shall be $250,000 per annum.
            The Board shall increase Executive's base salary by 20% per year
            during the second and third year of employment.

      4.    Stock Options. The Company will grant Executive stock options to
            purchase 676,408 shares in the common stock at the appraised fair
            market value as of May 1, 2004. This number of shares represent 5%
            of the total issued and outstanding stock, including stock options
            on a fully diluted basis. The stock options will vest as follows:
            May 1, 2004, 169,102 shares; May 1, 2005, 169,102 shares; May 1,
            2006, 169,102 shares; May 1, 2007, 169,102.

      5.    Bonus Options. Beginning May 1, 2005, the Board shall grant
            Executive additional options for 25,000 shares at the then fair
            value each at the end of each calendar year if the average annual
            volume for all new restaurants opened by the Company in that year
            equals or exceeds $4,500,000 on an annualized basis. Only
            restaurants that have been opened four months or more will qualify,
            in the calculation. The bonus options shall be 25,000 shares per
            year, unless otherwise agreed upon by the Board.

      6.    Benefits. Executive will receive all benefits, including health
            insurance, as granted to other senior executives of the Company. The
            Company will agree to pay all cost for health insurance for
            Executive and Executive's family.

      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.

<PAGE>

      8.    Confidentiality and Non-Compete. Executive will sign the attached
            Confidentiality and Non-Compete Agreement that all officers and
            managers sign that are employees of the Company.

      9.    Governing Law. This Agreement shall be governed by the laws of the
            State of Arizona.

      If you agree with the foregoing, please execute in the space provided
below. We look forward to a long and rewarding relationship.

                                           KONA GRILL, INC.

                                           By: /s/ Marcus Jundt
                                               ---------------------------------
                                               Marcus Jundt
                                               Chairman

                                           By: /s/ Donald Dempsey
                                               ---------------------------------
                                               Donald Dempsey
                                               Executive

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