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KRISPY KREME DOUGHNUT CORPORATION
 NONQUALIFIED STOCK OWNERSHIP PLAN
 
 EFFECTIVE FEBRUARY 1, 1999




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TABLE OF CONTENTS
 PAGEARTICLE 1 PURPOSE; EFFECTIVE DATE
    
    
    4ARTICLE 2 DEFINITIONS
    
    
    42.1
    
    Account
    
    
    42.2
    
    Beneficiary
    
    
    42.3
    
    Board
    
    
    42.4
    
    Change in Control
    
    
    42.5
    
    Code
    
    
    42.6
    
    Committee
    
    
    42.7
    
    Company
    
    
    52.8
    
    Compensation
    
    
    52.9
    
    Determination Date
    
    
    52.10
    
    Disability (or Disabled)
    
    
    52.11
    
    Distribution Election
    
    
    52.12
    
    Earnings
    
    
    52.13
    
    Effective Date
    
    
    52.14
    
    Employee
    
    
    52.15
    
    ERISA
    
    
    52.16
    
    Krispy Kreme Stock Index
    
    
    52.17
    
    KSOP
    
    
    52.18
    
    Participant
    
    
    52.19
    
    Plan
    
    
    52.20
    
    Plan Year
    
    
    52.21
    
    Stock Contributions
    
    
    52.22
    
    Year of Service
    
    
    5ARTICLE 3 PARTICIPATION AND DEFERRALS
    
    
    63.1
    
    Eligibility and Participation
    
    
    6ARTICLE 4 STOCK CONTRIBUTIONS4.1
    
    Stock Contributions
    
    
    6ARTICLE 5 ACCOUNTS
    
    
    65.1
    
    Account
    
    
    65.2
    
    Determination of Accounts
    
    
    65.3
    
    Investment of Account
    
    
    75.4
    
    Vesting of Accounts
    
    
    75.5
    
    Statement of Accounts
    
    
    7ARTICLE 6 BENEFIT PAYMENTS
    
    
    76.1
    
    Time of Benefit Payments
    
    
    7
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PAGE6.2
    
    Manner of Benefit Payments
    
    
    76.3
    
    Withholding; Payroll Taxes
    
    
    86.4
    
    Code 6 162(m) Restriction
    
    
    86.5
    
    Payment to Guardian
    
    
    8ARTICLE 7 BENEFICIARY DESIGNATION
    
    
    87.1
    
    Beneficiary Designation
    
    
    8ARTICLE 8 ADMINISTRATION
    
    
    88.1
    
    Committee
    
    
    8ARTICLE 9 AMENDMENT AND TERMINATION OF PLAN
    
    
    89.1
    
    Amendment
    
    
    99.2
    
    Companys Right to Terminate
    
    
    9ARTICLE 10 MISCELLANEOUS
    
    
    910.1
    
    Unfunded Plan
    
    
    910.2
    
    Unsecured General Creditor
    
    
    910.3
    
    Trust Fund
    
    
    1010.4
    
    Nonassignability
    
    
    1010.5
    
    Not a Contract of Employment
    
    
    1010.6
    
    Governing Law
    
    
    1010.7
    
    Validity
    
    
    1010.8
    
    Successors
    
    
    1010.9
    
    Captions
    
    
    1010.10
    
    Arbitration of Disputes
    
    
    1010.11
    
    Unclaimed Benefit
    
    
    1110.12
    
    Discharge of Obligations
    
    
    1110.13
    
    Limitations on Liability
    
    
    1110.14
    
    Entire Agreement
    
    
    11
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KRISPY KREME DOUGHNUT CORPORATION
 NONQUALIFIED STOCK OWNERSHIP PLAN
 ARTICLE 1
PURPOSE; EFFECTIVE DATE
  ARTICLE 2
DEFINITIONS
  2.1 Account
 2.2 Beneficiary
 2.3 Board
 2.4 Change in Control
     2.5 Code
 2.6 Committee
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2.7 Company
 2.8 Compensation
 2.9 Determination Date
 2.10 Disability (or Disabled)
 2.11 Distribution Election
 2.12 Earnings
 2.13 Effective Date
 2.14 Employee
 2.15 ERISA
 2.16 Krispy Kreme Stock Index
 2.17 KSOP
 2.18 Participant
 2.19 Plan
 2.20 Plan Year
 2.21 Stock Contributions
 2.22 Year of Service
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ARTICLE 3
PARTICIPATION AND DEFERRALS
 3.1 Eligibility and Participation .
 (a) Eligibility.
 (b) Effective Date of Participation.
 (c) Part-Year Participation.
 (d) Change in Employment Status.
 ARTICLE 4
STOCK CONTRIBUTIONS
 4.1 Stock Contributions
 ARTICLE 5
ACCOUNTS
 5.1 Account
 5.2 Determination of Accounts
 (a) Stock Contributions.
 (b) Distributions.
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(c) Earnings.
 5.3 Investment of Account
 5.4 Vesting of Accounts
 Years of Service
    
    Vested Percentage1
    
    20%2
    
    40%3
    
    60%4
    
    80%5 or more
    
    100%
  5.5 Statement of Accounts
 ARTICLE 6
BENEFIT PAYMENTS
 6.1 Time of Benefit Payments
 6.2 Manner of Benefit Payments
   (c) Small Amounts.
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(d) Change in Form of Benefits.
 6.3 Withholding; Payroll Taxes
 6.4 Code §162(m)Restriction
 6.5 Payment to Guardian
 ARTICLE 7
BENEFICIARY DESIGNATION
 7.1 Beneficiary Designation
 ARTICLE 8
ADMINISTRATION
 8.1 Committee .
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ARTICLE 9
AMENDMENT AND TERMINATION OF PLAN
 9.1 Amendment
   9.2 Companys Right to Terminate
 (a) Partial Termination.
 (b) Complete Termination.
 ARTICLE 10
MISCELLANEOUS
 10.1 Unfunded Plan
 10.2 Unsecured General Creditor
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10.3 Trust Fund
 10.4 Nonassignability
 10.5 Not a Contract of Employment
 10.6 Governing Law
 10.7 Validity
 10.8 Successors
 10.9 Captions
 10.10 Arbitration of Disputes
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10.11 Unclaimed Benefit
 10.12 Discharge of Obligations
 10.13 Limitations on Liability
 10.14 Entire Agreement
 IN WITNESS WHEREOF,
 KRISPY KREME DOUGHNUT CORPORATIONBy:Its:ATTEST:By:Its:
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