Item 1.01 Entry into a Material Definitive Agreement.

On December 22, 2008, Kona Grill, Inc. (the "Company") entered into a Subscription Agreement (the "Agreement") with James R. Jundt for the purchase of $1,000,000 of the Company's common stock at a price per share of $1.19 which represents the average closing price per share of the Company's common stock as quoted on the NASDAQ Global Market for the five trading days prior to the date of the Agreement. The investment by Mr. James Jundt is subject to the Company receiving a commitment from a third party lender of at least $3,000,000 of new debt financing in the form of a line of credit, equipment financing, term loan, or other form of debt.

Prior to the issuance of common stock pursuant to the Agreement, James R. Jundt is the beneficial owner of 4.9% of the Company's common stock. Mr. Jundt is also the father of Marcus E. Jundt, the Company's Chairman of the Board, Chief Executive Officer, and President.

The foregoing is only a summary of the terms of the Agreement, and is qualified in its entirety by reference to the full text of the Agreement, which is attached as Exhibit 10.20 to this report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit 10.20 - Subscription Agreement, dated December 22, 2008, between Kona Grill, Inc. and James R. Jundt