May 24, 2005

 

Mr. Michael Phalen

Chief Financial Officer

Krispy Kreme Doughnuts, Inc.

370 Knollwood Street, Suite 500

Winston-Salem, NC 27103

 

Re:

Services Agreement dated January 18, 2005, Amendment to Services Agreement dated

March 31, 2005, and Letter Agreements dated March 10, 2005 and April 20, 2005,

 

Dear Mr. Phalen:

 

We regret that we must request a further extension to the deadline to negotiate
a “Success Fee” (as that term is defined in the Services Agreement) through and
including June 30, 2005.

 

Unfortunately, because we were immersed in the financing and operational
restructuring efforts, we were unable to negotiate the Success Fee within the
earlier timeframe. We appreciate your indulgence and apologize for any
inconvenience.

 

Please sign and return a copy of this letter to confirm your agreement to this
further extension.

 

Very truly yours,

/s/   Elizabeth S. Kardos
       General Counsel
       for Kroll Zolfo Cooper LLC

 

Agreed:

 

By: /s/ James H. Morgan

 

__________________________

Krispy Kreme Doughnuts, Inc.

 

By: /s/ Stephen F. Cooper

 

____________________________

Stephen F. Cooper

 

By: /s/ Steven G. Panagos

____________________________

Steven G. Panagos