EXHIBIT 10.35

KRISPY KREME DOUGHNUTS,
INC.COMPENSATION RECOVERY POLICYEffective April 6, 2009

The Board of Directors of Krispy Kreme
Doughnuts, Inc. (the Company) believes it is desirable and in the best
interests of the Company and its shareholders to maintain and enhance a culture
focused on diligent, responsible management and that discourages conduct
detrimental to the Companys sustainable growth. It may be appropriate for the
Company to recover annual or long-term incentive compensation paid to certain
members of the Companys management team in the event that members of the
management team engage in conduct that is detrimental to the Company. In light
of these concerns and to set an example to employees throughout the Company, the
Board of Directors has adopted the Krispy Kreme Doughnuts, Inc. Compensation
Recovery Policy (the Policy) effective as of April 6, 2009 (the Effective
Date).

The terms of the Policy are as follows:

| | 1. |  | It applies to all
      executive officers of the Company (as determined from time to time by the
      Board of Directors), the corporate controller and such other employees who
      may from time to time be deemed subject to the Policy by the Board of
      Directors (collectively, the Covered Officers). It will be administered
      by the Compensation Committee of the Board of Directors (the Committee),
      unless the Board of Directors determines to administer the Policy itself
      (the Committee or Board of Directors, as applicable, in its role
      administering the Policy is the Administrator). The Administrator may
      delegate ministerial administrative duties to one or more officers or
      employees of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
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| |   
| | 2. |  | If a Covered Officer
      engages in Detrimental Conduct (as defined herein), then, to the fullest
      extent of the law, the Company may require such Covered Officer to: (a)
      reimburse the Company for all, or a portion of, any bonus, incentive
      payment, equity-based award or other compensation received by such
      Covered Officer within 36 months following such Detrimental Conduct; and
      (b) remit to the Company any profits realized by such Covered Officer from
      the sale of the Companys securities within 36 months following such
      Detrimental Conduct.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |   
| | 3. |  | For purposes of this
      Policy, Detrimental Conduct means: (a) grossly negligent or willful
      misconduct pertaining to any financial reporting requirement under the
      United States securities laws resulting in the Company being required to
      prepare an accounting restatement due to the noncompliance of the Company
      as a result of such misconduct; (b) grossly negligent or willful
      misconduct pertaining to the Companys (or its wholly-owned subsidiary,
      Krispy Kreme Doughnut Corporation) business resulting in a material
      negative revision of a financial or operating measure on the basis of
      which compensation was awarded or paid; and (c) any fraud, theft,
      misappropriation, embezzlement or dishonesty to the material detriment of
      the Company. A Covered Officer will be deemed to have engaged in
      Detrimental Conduct if such Covered Officer is willfully or grossly
      negligent in his or her oversight of a person who reports directly to such
      Covered Officer and who engages in Detrimental Conduct. For purposes of
      this Policy, no act or failure to act shall be considered willful unless
      it is done, or omitted to be done, by such person in bad faith or without
      a reasonable belief that the persons action or omission was in the best
      interests of the Company.

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| | 4. |  | In the case of
      Detrimental Conduct described in part (a) of the definition thereof, the
      36-month period applicable to the compensation to be recovered by the
      Company will commence with the first public issuance or filing with the
      United States Securities and Exchange Commission (whichever first occurs)
      of the financial document embodying the financial reporting requirement
      that gives rise to the restatement.                                                                                                                                                                                                                                                                                                
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| |   
| | 5. |  | The Board of Directors
      intends that this Policy will be applied to the fullest extent of the law.
      In addition, the Administrator may determine that any equity award
      agreement, employment agreement or similar agreement entered into or
      amended after the Effective Date shall, as a condition to the grant of any
      benefit covered by such agreement, require a Covered Officer to
      contractually agree to abide by the terms of this Policy. Further, the
      adoption of this Policy does not mitigate, and is intended to enhance, the
      effect of any recoupment or similar policies in any equity award
      agreement, employment agreement or similar agreement in effect prior to
      the Effective Date.

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KRISPY KREME DOUGHNUTS,
INC.COMPENSATION RECOVERY POLICY

I acknowledge receipt of the Krispy Kreme
Doughnuts, Inc. Compensation Recovery Policy and agree to abide by the terms and
conditions thereof so long as I am a Covered Officer.

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|Signature          | 
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|Printed
      Name | 
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|Date               | 

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