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**UNITED STATES SECURITIES AND EXCHANGECOMMISSIONWashington, D.C. 20549______________Form 10-K/A**
** **
**Amendment No. 1 **
| (Mark one) |                          |
|------------|--------------------------|
| þ     |      | ANNUAL REPORT PURSUANT TO SECTION      13 OR 15(d) |
|            |                          | OF THE SECURITIES      EXCHANGE ACT OF 1934 |
|       |                     |   |
|            |                          | For the fiscal year ended January      31, 2010 |
|       |                     |   |
| OR         |
|       |
| o          |                          | TRANSITION REPORT      PURSUANT TO SECTION 13 OR 15(d) |
|            |                          | OF THE SECURITIES      EXCHANGE ACT OF 1934 |
|       |                     |   |
|       |                     | For the transition period      from         to |

| North Carolina                                                       | 56-2169715                                |
|----------------------------------------------------------------------|-------------------------------------------|
| (State or other jurisdiction      of                                 | (I.R.S. Employer Identification      No.) |
| incorporation or      organization)                                  |                                           |
|                                                                 |                                           |
| 370 Knollwood Street,                                                | 27103                                     |
| Winston-Salem, North      Carolina                                   | (Zip Code)                                |
| (Address of principal executive      offices)                        |                                           |
|                                                                 |
| Registrant’s telephone number, including      area code:       |
| (336) 725-2981                                                       |
|                                                                 |
| Securities registered pursuant to      Section 12(b) of the Act:     |
|                                                                      | Name of                                   |
|                                                                      | Each Exchange                             |
|                                                                      | On Which                                  |
| Title of Each      Class                                             | Registered                                |
| Common Stock, No Par Value                                           | New York Stock Exchange                   |
| Preferred Share PurchaseRights                                       | New York Stock Exchange                   |
|                                                                 |
| Securities registered pursuant to Section 12(g) of the      Act:None |

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|                                | 1.     |                                | Item      6, “Selected Financial Data,” is amended to correct the caption “Income      (loss) before income taxes,” which was erroneously labeled “Income (loss)      from continuing operations before income taxes” in the Original      Report.                                                                                                                                                                                                                            |
|--------------------------------|--------|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                |   |
|                                | 2.     |                                | Item      15(a)(3), “Exhibits,” is amended to provide the consent of KPMG Cardenas      Dosal, S.C.                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                |   |
|       | 3.     |       | Item      15(c)(2), “Separate Financial Statements of 50 Percent or Less Owned      Persons,” is amended to provide the consolidated financial statements of      Krispy Kreme Mexico, S. de R. L. de C. V. as of December 31, 2009 and      2008, and for each of the years in the three-year period ended December      31, 2009, together with the report thereon of KPMG Cardenas Dosal, S.C. on      such consolidated financial statements as of and for the year ended      December 31, 2009. |

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|                                                                                                               |                          | Year Ended                                                      |
|---------------------------------------------------------------------------------------------------------------|--------------------------|-----------------------------------------------------------------|
|                                                                                                               |      | Jan. 31,                                                        |  | Feb. 1, |  | Feb. 3, |  | Jan. 28, |  | Jan. 29, |
|                                                                                                               |                          | 2010                                                            |  | 2009 |  | 2008 |  | 2007 |  | 2006 |
|                                                                                                               |                          | (In thousands, except per share and      number of stores data) |
| STATEMENT OF OPERATIONS DATA:                                                                                 |                          |                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Revenues                                                                                                      | $                        | 346,520                                                         |  |      | $ | 385,522 |  |      | $ | 430,370 |  |  | $ | 461,195 |  |      | $ | 543,361 |  |
| Operating expenses:                                                                                           |                          |                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|        Direct operating expenses      (exclusive of                             |                          |                                                                 |  |  |  |  |   |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    depreciation shown below) |                     |                                                                 | 297,185 |  |  |  | 346,545 |  |  |  | 381,065 |  |      |  | 389,379 |  |  |  | 474,591 |  |
|             General and administrative expenses                                 |                          | 22,728                                                          |  |  |  | 23,458 |  |  |  | 26,303 |  |  |  | 48,860 |  |  |  | 67,727 |  |
|             Depreciation and amortization expense                               |                          | 8,191                                                           |  |  |  | 8,709 |  |  |  | 18,433 |  |  |  | 21,046 |  |  |  | 28,920 |  |
|             Impairment charges and lease termination costs                      |                          | 5,903                                                           |  |  |  | 548 |  |  |  | 62,073 |  |  |  | 12,519 |  |  |  | 55,062 |  |
|             Settlement of litigation                                            |                     | —                                                         |  |  |  | — |  |  |  | (14,930 | ) |  |  | 15,972 |  |  |  | 35,833 |  |
|             Other operating (income) and expenses, net                          |                          | 739                                                             |  |  |  | 1,501 |  |  |  | 13 |  |  |  | 1,916 |  |  |  | (1,741 | ) |
|             Operating income (loss)                                             |                          | 11,774                                                          |  |  |  | 4,761 |  |  |  | (42,587 | ) |  |  | (28,497 | ) |  |  | (117,031 | ) |
| Interest income                                                                                               |                          |                                                                 | 93 |  |  |  | 331 |  |  |  | 1,422 |  |  |  | 1,627 |  |  |  | 1,110 |  |
| Interest expense                                                                                              |                          |                                                                 | (10,685 | ) |  |  | (10,679 | ) |  |  | (9,796 | ) |  |  | (20,334 | ) |  |  | (20,211 | ) |
| Loss on extinguishment of debt                                                                                |                          |                                                                 | — |  |  |  | — |  |  |  | (9,622 | ) |  |  | — |  |  |  | — |  |
| Equity in losses of equity method      franchisees                                                            |                          | (488                                                            | ) |  |  | (786 | ) |  |  | (933 | ) |  |  | (842 | ) |  |  | (4,337 | ) |
| Other non-operating income and      (expense), net                                                            |                          | (276                                                            | ) |  |  | 2,815 |  |  |  | (3,211 | ) |  |  | 7,021 |  |  |  | (248 | ) |
| Income (loss) before income taxes                                                                             |                          |                                                                 | 418 |  |  |  | (3,558 | ) |  |  | (64,727 | ) |  |  | (41,025 | ) |  |  | (140,717 | ) |
| Provision for income taxes      (benefit)                                                                     |                          |                                                                 | 575 |  |  |   | 503 |  |  |  | 2,324 |  |  |  | 1,211 |  |  |  | (776 | ) |
| Net loss                                                                                                      |                          | (                                                               | 157 | ) |  | ( | 4,061 | ) |  | ( | 67,051 | ) |  | ( | 42,236 | ) |  | ( | 139,941 | ) |
| Net loss attributable to noncontrolling      interests                                                        |                          | —                                                         |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,181 |  |
| Net loss attributable to Krispy Kreme      Doughnuts, Inc.                                                    | ($                       | 157                                                             | ) |  | ($ | 4,061 | ) |  | ($ | 67,051 | ) |  | ($   | 42,236 | ) |  | ($   | 135,760 | ) |
| Net loss per common share:                                                                                    |                          |                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|        Basic                                                                    |                          | $                                                               | — |  |  | ($ | .06 | ) |  | ($ | 1.05 | ) |  | ($ | .68 | ) |  | ($ | 2.20 | ) |
|             Diluted                                                             |                          | $                                                               | — |  |  | ($ | .06 | ) |  | ($ | 1.05 | ) |  | ($ | .68 | ) |  | ($ | 2.20 | ) |
| BALANCE SHEET DATA (AT END OF      YEAR):                                                                     |                          |                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Working capital (deficit)(1)                                                                                  |                          | $                                                     | 21,550 |  |  | $   | 36,190 |  |  | $   | 32,862 |  |  | ($ | 3,052 | ) |  | ($ | 6,894 | ) |
| Total assets                                                                                                  |                          |                                                                 | 165,276 |  |  |  | 194,926 |  |  |  | 202,351 |  |  |  | 349,492 |  |  |  | 410,855 |  |
| Long-term debt, less current      maturities                                                                  |                          |                                                                 | 42,685 |  |  |  | 73,454 |  |  |  | 75,156 |  |  |  | 105,966 |  |  |   | 118,241 |  |
| Total shareholders’ equity                                                                              |                          |                                                                 | 62,767 |  |  |  | 57,755 |  |  |   | 56,624 |  |  |  | 78,962 |  |  |  | 108,671 |  |
| Number of stores at end of    year:                                                                           |                          |                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|        Company                                                                  |                          |                                                                 | 83 |  |  |  | 93 |  |  |  | 105 |  |  |  | 113 |  |  |  | 133 |   |
|             Franchise                                                           |                          |                                                                 | 499 |  |  |  | 430 |  |  |  | 344 |  |  |  | 282 |  |  |  | 269 |  |
|        Systemwide                                                               |                          |                                                                 | 582 |  |  |  | 523 |  |  |  | 449 |  |  |   | 395 |  |  |  | 402 |  |
|                                                                                                               |                     |                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

| (1) |      | Reflects a liability, net of amounts recoverable from insurance      companies, of approximately $51.8 million and $35.8 million as of January      28, 2007 and January 29, 2006, respectively, related to the settlement of      certain litigation. This liability was satisfied in March 2007 through the      issuance of shares of common stock and warrants to acquire shares of      common stock as described in Note 12 to the consolidated financial      statements appearing elsewhere herein. |
|-----|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a)    |       | Financial Statements and      Schedules |                           |
|--------|---------------------------|-----------------------------------------|--------------------------------|
|        |                           |                                    |                                |
|   |                           | 1.                                      |       | Financial Statements. See Item 8, “Financial Statements and      Supplementary Data.” |   |
|        |                           |                                         |                                |   |  |
|   |                           | 2.                                      |                                | Financial Statement      Schedules. |   |
|        |                           |                                         |                                |   |  |
|   |                           |                                    |                                |        | Schedule I — Condensed Financial      Information of Registrant | F-1 |
|        |                           |                                         |                                |  |   |  |
|   |                           |                                    |                                |  | Schedule II — Valuation and Qualifying      Accounts and Reserves | F-4 |
|        |                           |                                         |                                |  |   |  |
|   |                           | 3.                                      |                                | Exhibits. |   |

| Exhibit               |                                 |   |         |                     |
|-----------------------|--------------------------------------|--------|---------|--------------------------|
| Number                |                            |   |         | Description of  Exhibits |
|    3.1 | *                          |   | — |                | Amended Articles of Incorporation of the      Registrant |
| 3.2                   |                                      |   | — |                          | Amended and Restated Bylaws of the Registrant (incorporated by      reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K      filed on December 15, 2008) |
| 4.1                   |                                      |   | — |                          | Form of Certificate for Common Stock      (incorporated by reference to Exhibit 4.1 to the Registrant’s Amendment      No. 4 to Registration Statement on Form S-1 (Commission File No.      333-92909), filed on April 3, 2000) |
| 4.2                   |                                      |   | — |                          | Shareholder Protection Rights Agreement between the Company and      American Stock Transfer & Trust Company, LLC, as Rights Agent, dated      as of January 14, 2010 (incorporated by reference to Exhibit 4.1 to the      Registrant’s Current Report on Form 8-K filed on January 19,    2010) |
| 4.3                   |                                      |   | — |                          | Warrant to Purchase Common Stock issued      by Krispy Kreme Doughnuts, Inc. in favor of Kroll Zolfo Cooper LLC, dated      July 31, 2005 (incorporated by reference to Exhibit 4.1 to the      Registrant’s Current Report on Form 8-K filed on October 26,    2005) |
| 4.4                   |                                      |   | — |                          | Warrant Agreement, dated as of March 2, 2007, between Krispy Kreme      Doughnuts, Inc. and American Stock Transfer & Trust Company      (incorporated by reference to Exhibit 4.1 to the Registrant’s Current      Report on Form 8-K filed on March 8, 2007) |
| 10.1                  |                                      |   | — |                          | Trademark License Agreement, dated May      27, 1996, between HDN Development Corporation and Krispy Kreme Doughnut      Corporation (incorporated by reference to Exhibit 10.22 to the      Registrant’s Amendment No. 1 to Registration Statement on Form S-1      (Commission File No. 333-92909), filed on February 22, 2000) |
| 10.2                  |                                      |   | — |                          | 1998 Stock Option Plan dated August 6, 1998 (incorporated by      reference to Exhibit 10.23 to the Registrant’s Amendment No. 1 to      Registration Statement on Form S-1 (Commission File No. 333-92909), filed      on February 22, 2000)** |
| 10.3                  |                                      |   | — |                          | Employment Agreement, dated as of April      23, 2007, among Krispy Kreme Doughnuts, Inc., Krispy Kreme Doughnut      Corporation and Douglas R. Muir (incorporated by reference to Exhibit 10.2      to the Registrant’s Current Report on Form 8-K filed on April 27,      2007)** |
| 10.4                  |                                      |   | — |                          | Amendment, dated November 8, 2007, to Employment Agreement, dated      as of April 23, 2007, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and Douglas R. Muir (incorporated by reference to      Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on      November 13, 2007)** |
| 10.5                  |                                      |   | — |                          | Second Amendment, dated December 15,      2008, to Employment Agreement, dated as of April 23, 2007, among Krispy      Kreme Doughnuts, Inc., Krispy Kreme Doughnut Corporation and Douglas R.      Muir (incorporated by reference to Exhibit 10.2 to the Registrant’s      Current Report on Form 8-K filed on December 19, 2008)** |
| 10.6                  |                                      |   | — |                          | Employment Agreement, dated as of February 27, 2008, among Krispy      Kreme Doughnuts, Inc., Krispy Kreme Doughnut Corporation and James H.      Morgan (incorporated by reference to Exhibit 10.1 to the Registrant’s      Current Report on Form 8-K filed on March 5, 2008)** |
|   10.7      |        |   | — |                          | Amendment, dated December 15, 2008, to      Employment Agreement, dated as of February 27, 2008, among Krispy Kreme      Doughnuts, Inc., Krispy Kreme Doughnut Corporation and James H. Morgan      (incorporated by reference to Exhibit 10.1 to the Registrant’s Current      Report on Form 8-K filed on December 19,2008)** |

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| 10.8  |                                        | — |    | Employment Agreement, dated as of      November 7, 2007, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and Kenneth J. Hudson (incorporated by reference to      Exhibit 10.18 to the Registrant’s Annual Report on Form 10-K filed on      April 17, 2008)**                                                                                                                                                                                                                                |
|-------|--------------------------------------------------|---------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.9  |                                                  | — |              | Amendment, dated December 15, 2008, to Employment Agreement, dated      as of November 7, 2007, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and Kenneth J. Hudson (incorporated by reference to      Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed on      December 19, 2008)**                                                                                                                                                                                       |
| 10.10 |                                                  | — |              | Employment Agreement, dated as of      November 7, 2007, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and Jeffrey B. Welch (incorporated by reference to      Exhibit 10.19 to the Registrant’s Annual Report on Form 10-K filed on      April 17, 2008)**                                                                                                                                                                                                                                 |
| 10.11 |                                                  | — |              | Amendment, dated December 15, 2008, to Employment Agreement, dated      as of November 7, 2007, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and Jeffrey B. Welch (incorporated by reference to      Exhibit 10.4 to the Registrant’s Current Report on Form 8-K filed on      December 19, 2008)**                                                                                                                                                                                        |
| 10.12 |                                                  | — |              | Employment Agreement, dated as of      October 3, 2008, among Krispy Kreme Doughnuts, Inc., Krispy Kreme Doughnut      Corporation and Darryl R. Marsch (incorporated by reference to Exhibit      10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on December      11, 2008)**                                                                                                                                                                                                                             |
| 10.13 |                                                  | — |              | Amendment, dated December 15, 2008, to Employment Agreement, dated      as of October 3, 2008, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and Darryl R. Marsch**                                                                                                                                                                                                                                                                                                                               |
| 10.14 |                                                  | — |              | Employment Agreement, dated as of      November 7, 2007, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and M. Bradley Wall (incorporated by reference to      Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed on      December 11, 2008)**                                                                                                                                                                                                                             |
| 10.15 |                                                  | — |              | Amendment, dated December 15, 2008, to Employment Agreement, dated      as of November 7, 2007, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and M. Bradley Wall**                                                                                                                                                                                                                                                                                                                               |
| 10.16 |                                                  | — |              | Employment Agreement, dated as of      November 7, 2007, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and Steven A. Lineberger (incorporated by reference      to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q filed on      December 11, 2008)**                                                                                                                                                                                                                        |
| 10.17 |                                                  | — |              | Amendment, dated December 15, 2008, to Employment Agreement, dated      as of November 7, 2007, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and Steven A. Lineberger**                                                                                                                                                                                                                                                                                                                          |
| 10.18 |                                                  | — |              | Employment Agreement, dated as of      September 14, 2009, among Krispy Kreme Doughnuts, Inc., Krispy Kreme      Doughnut Corporation and Cynthia A. Bay (incorporated by reference to      Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on      December 7, 2009)**                                                                                                                                                                                                                             |
| 10.19 |                                                  | — |              | 2000 Stock Incentive Plan, as amended as of June 16, 2009      (incorporated by reference Exhibit 10.1 to the Registrant’s Current Report      on Form 8-K filed on June 22, 2007)**                                                                                                                                                                                                                                                                                                                                     |
| 10.20 |                                                  | — |              | Fifth Amendment to the Krispy Kreme      Doughnuts, Inc. 2000 Stock Incentive Plan dated December 10, 2008, and      effective January 1, 2005 to the extent necessary to comply with Section      409A of the Internal Revenue Code of 1986, as amended and otherwise      effective December 31, 2008**                                                                                                                                                                                                                      |
| 10.21 |                                                  | — |              | Krispy      Kreme Doughnut Corporation Nonqualified Deferred Compensation Plan,      effective October 1, 2000 (incorporated by reference to Exhibit 10.20 to      the Registrant’s Annual Report on Form 10-K for fiscal2005)**                                                                                                                                                                                                                                                                                         |
| 10.22 |                                                  | — |              | Credit      Agreement, dated as of February 16, 2007, by and among Krispy Kreme      Doughnut Corporation, Krispy Kreme Doughnuts, Inc., the Subsidiary      Guarantors party thereto, the Lenders party thereto and Credit Suisse,      Cayman Islands Branch, as administrative agent, collateral agent, issuing      lender and swingline lender (the “Credit Agreement”) (incorporated by      reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K      filed on February 23, 2007) |
| 10.23 |                                                  | — |              | Security Agreement, dated as of February 16, 2007, by and among      Krispy Kreme Doughnut Corporation, Krispy Kreme Doughnuts, Inc., the      Subsidiary Guarantors party thereto and Credit Suisse, Cayman Islands      Branch, as collateral agent (incorporated by reference to Exhibit 10.2 to      the Registrant’s Current Report on Form 8-K filed on February 23,      2007)                                                                                                                                    |
| 10.24 |                                                  | — |              | Amendment No. 1, dated as of June 21, 2007, to the Credit Agreement      (incorporated by reference to Exhibit 10.1 to the Registrant’s Current      Report on Form 8-K filed on June 27, 2007)                                                                                                                                                                                                                                                                                                                          |
| 10.25 |                                                  | — |              | Amendment No. 2, dated as of January 23, 2008, to the Credit      Agreement (incorporated by reference to Exhibit 10.1 to the Registrant’s      Current Report on Form 8-K filed on January 25, 2008)                                                                                                                                                                                                                                                                                                                    |
| 10.26 |          | — |              | Amendment No. 3, dated as of April 9, 2008, to the Credit Agreement      (incorporated by reference to Exhibit 10.1 to the Registrant’s Current      Report on Form 8-K filed on April 15,2008)                                                                                                                                                                                                                                                                                                                          |

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| 10.27 |                        | — |   | Amendment No. 4, dated as of April 15,      2009, to the Credit Agreement (incorporated by reference to Exhibit 10.26      to the Registrant’s Annual Report on Form 10-K filed on April 17,      2009)                                                                                                                       |
|-------|-----------------------------|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.28 |                             | — |        | Form of Indemnification Agreement entered into between Krispy Kreme      Doughnuts, Inc. and Lizanne Thomas and Michael Sutton (incorporated by      reference to Exhibit 99.3 to the Registrant’s Current Report on Form 8-K      filed on October 8, 2004)**                                                                |
| 10.29 |                             | — |        | Form of Indemnification Agreement      entered into between Krispy Kreme Doughnuts, Inc. and members of the      Registrant’s Board of Directors (other than Lizanne Thomas and Michael      Sutton) (incorporated by reference to Exhibit 10.42 to the Registrant’s      Annual Report on Form 10-K for fiscal 2005)** |
| 10.30 |                             | — |        | Form of Indemnification Agreement entered into between Krispy Kreme      Doughnuts, Inc. and Officers of the Registrant (incorporated by reference      to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on      September 18, 2007)                                                                      |
| 10.31 |                             | — |        | Form of Nonqualified Stock Option      Agreement (incorporated by reference to Exhibit 10.1 to the Registrant’s      Current Report on Form 8-K filed on December 17, 2009)**                                                                                                                                                 |
| 10.32 |                             | — |        | Annual Incentive Plan (incorporated by reference to Exhibit 10.32      to the Registrant’s Annual Report on Form 10-K filed on April 17,      2008)**                                                                                                                                                                         |
| 10.33 |                             | — |        | Form of Restricted Stock Agreement      (incorporated by reference to Exhibit 10.33 to the Registrant’s Annual      Report on Form 10-K filed on April 17, 2009) **                                                                                                                                                           |
| 10.34 |                             | — |        | Form of Restricted Stock Unit Agreement (incorporated by reference      to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed on      December 17, 2009)**                                                                                                                                                     |
| 10.35 |                             | — |        | Form of Director Restricted Stock Unit      Agreement (incorporated by reference to Exhibit 10.2 to the Registrant’s      Current Report on Form 8-K filed on December 17, 2009)**                                                                                                                                            |
| 10.36 |                             | — |        | Compensation Recovery Policy (incorporated by reference to Exhibit      10.35 to the Registrant’s Annual Report on Form 10-K filed on April 17,      2009)**                                                                                                                                                                  |
| 21    | *                           | — |        | List of Subsidiaries                                                                                                                                                                                                                                                                                                                |
| 23.1  | *                           | — |        | Consent of PricewaterhouseCoopers LLP                                                                                                                                                                                                                                                                                               |
| 23.2  | *                           | — |        | Consent of Ballman Kallick,  LLP                                                                                                                                                                                                                                                                                                    |
| 23.3  | ***                         | — |        | Consent of KPMG Cardenas Dosal, S.C.                                                                                                                                                                                                                                                                                                |
| 24    | *                           | — |        | Powers of Attorney of certain officers      and directors of the Company (included on the signature page of the      Registrant’s Annual Report on Form 10-K for the year ended January 31,      2010)                                                                                                                        |
| 31.1  | ***                         | — |        | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)      and Rule 15d-14(a) of the Securities Exchange Act of 1934, as      amended                                                                                                                                                                                 |
| 31.2  | ***                         | — |        | Certification of Chief Financial Officer      pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange      Act of 1934, as amended                                                                                                                                                                                 |
| 32.1  | ***                         | — |        | Certification by Chief Executive Officer pursuant to 18 U.S.C.      Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act      of 2002                                                                                                                                                                         |
| 32.2  | ***     | — |        | Certification by Chief Financial Officer      pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of      the Sarbanes-Oxley Act of2002                                                                                                                                                                          |

| *                         |                          | Filed as an exhibit to the Registrant’s Annual Report on Form 10-K      for the year ended January 31, 2010 under the same exhibit    number.                                                                                                                                                 |
|---------------------------|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |
| **                        |                          | Identifies management contracts and executive compensation plans or      arrangements required to be filed as exhibits pursuant to Item 15(b),      “Exhibits and Financial Statement Schedules — Exhibits,” of the      Registrant’s Annual Report on Form 10-K. |
|                 |
| ***                       |      | Filed herewith.                                                                                                                                                                                                                                                                                     |

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| (c)    |       | Separate Financial Statements of 50      Percent or Less Owned Persons |                     |
|--------|---------------------------|------------------------------------------------------------------------|--------------------------|
|        |                           |                                                                   |                          |
|   |                           | 1.                                                                     |      | Financial Statements of Kremeworks,      LLC |   |
|        |                           |                                                                        |                          |   |  |
|   |                           |                                                                   |                          |     | Index to Financial Statements | F-5 |
|        |                           |                                                                        |                          |  |   |  |
|   |                      | 2.                                                                     |                     | Financial Statements of Krispy      Kreme Mexico, S. de R. L. de C.V. and Subsidiary |   |
|   |                      |                                                                   |                     |   |   |   |
|   |                      |                                                                   |                     |   | Index to Financial      Statements | F-24 |

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| Krispy Kreme Doughnuts, Inc. |
|------------------------------|
|                    |
| By:                | /s/ Douglas R.      Muir |
|                         | Name:     | Douglas      R. Muir |
|                         | Title: | Executive Vice President and Chief |
|                         |   | Financial Officer |

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|                                                                                                                         | Page   |
|-------------------------------------------------------------------------------------------------------------------------|--------|
| Index to Financial Statements:                                                                                          |        |
| Independent auditors’ report                                                                                      | F-25   |
| Consolidated balance sheets as of      December 31, 2009 and December 31, 2008                                          | F-26   |
| Consolidated statements of operations for each of the years in the      three-year period                               |        |
|        ended December 31,    2009                                                         | F-27   |
| Consolidated statement of changes in      partners’ equity for each of the years in the three-year    period |   |
|             ended December 31, 2009                                                       | F-28   |
| Consolidated statements      of cash flows for each of the years in the three-yearperiod                           |        |
|        ended December 31,    2009                                                         | F-29   |
| Notes to consolidated financial      statements                                                                         | F-30   |

----

----

|                     Assets                                |       | 2009                      |       | 2008   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------|--------------------------------|--------|
|                                                                                                                                                               |                                |                           |                                |        |   | Unaudited |
| Current assets:                                                                                                                                               |                           |                           |                                |        |  |  |   |
|        Cash and cash      equivalents                                                                                           |                                | $     | 14,883,291                     |        |  | 8,907,963 |  |
|             Accounts receivable (note 5)                                                                                        |                           |                      | 1,599,120                      |   |  | 1,773,782 |  |
|        Related parties (note    6)                                                                                              |                                |                           | 975,175                        |        |  | 744,003 |  |
|             Other receivables, mainly VAT (note 7)                                                                              |                                |                           | 12,570,827                     |        |  | 12,284,994 |  |
|        Inventories (note 8)                                                                                                     |                                |                      | 4,729,240                      |        |  | 6,745,049 |  |
|        Prepaid expenses                                                                                                         |                                |                           | 58,275                         |        |  | 321,022 |  |
|                                                                                                                                                          |                                |
|                    Total current assets                                                      |                                |                           | 34,815,928                     |        |  | 30,776,813 |  |
|                                                                                                                                                          |                                |
| Improvements, machinery and equipment,      net (note 9)                                                                                                      |                                |                           | 76,733,467                     |        |  | 85,119,429 |  |
|                                                                                                                                                     |                                |
| Other assets, net (note 10)                                                                                                                                   |                                |                           | 14,694,347                     |        |  | 12,322,774 |  |
|                                                                                                                                                          |                                |
|                                                                                                                                                          |                                |                           |                                |        |  |  |  |
|                                                                                                                                                          |                                |                           |                                |        |  |  |  |
|                                                                                                                                                          |                                | $                         | 126,243,742                    |        |  | 128,219,016 |  |
|                                                                                                                                                          |                                |                           |                                |        |  |  |  |
|                     Liabilities      and Partners' Equity |                 | 2009                      |                 | 2008   |
|                                                                                                                                                               |                                |                           |                                |        |   | Unaudited |
| Current liabilities:                                                                                                                                          |                                |                           |                                |   |  |  |   |
|        Current installments of notes      payable to banks and long-term debt (note 12)                                         |                                | $     | 9,810,153                      |        |  | 18,686,086 |  |
|             Operadora de Servicios Mega, S. A. de C. V. Sofom,  E. R. N. (note      13)                                    |                                |                           | 12,572,695                     |        |  | 12,707,475 |  |
|        Trade accounts    payable                                                                                                |                                |                           | 4,992,368                      |        |  | 12,920,247 |  |
|             Other liabilities                                                                                                   |                                |                           | 162,291                        |        |  | 825,463 |  |
|        Accruals (note 11)                                                                                                       |                                |                           | 3,865,676                      |        |  | 3,407,511 |  |
|             Income taxes payable                                                                                                |                                |                           | -                              |        |  | 3,256,090 |  |
|        Related parties (note    6)                                                                                              |                                |                           | 25,118,707                     |        |  | 16,078,788 |  |
|                                                                                                                                                          |
|                           Total current liabilities       |                                |                           | 56,521,890                     |        |  | 67,881,660 |  |
|                                                                                                                                                          |
| Notes payable to banks and long-term      (note 12)                                                                                                           |                                |                           | 4,130,415                      |        |  | 5,370,184 |  |
| Deferred income taxes (note 14)                                                                                                                               |                                |                           | 2,052,020                      |        |  | 4,480,890 |  |
|                                                                                                                                                          |
|                           Total liabilities               |                                |                           | 62,704,325                     |        |  | 77,732,734 |  |
|                                                                                                                                                          |
| Partners' equity (note 15):                                                                                                                                   |                                |                           |                                |        |  |  |  |
|        Controllinginterest:                                                                                                     |                                |                           |                                |        |  |  |  |
|                    Capital stock                                                             |                                |                           | 77,248,807                     |        |  | 77,248,807 |  |
|                    Accumulated deficit                                                       |                                |                           | (13,718,687                    | )      |  | (26,733,715 | ) |
|                                                                                                                                                          |
|                           Total controlling interest      |                                |                           | 63,530,120                     |        |  | 50,515,092 |  |
|                                                                                                                                                          |
|             Non-controlling interest                                                                                            |                                |                           | 9,297                          |        |  | (28,810 | ) |
|                                                                                                                                                          |
|                    Total Partners' equity                                                    |                                |                           | 63,539,417                     |        |  | 50,486,282 |  |
|                                                                                                                                                          |
| Commitments and contingent liabilities      (note 16)                                                                                                         |                                |                           |                                |        |  |  |  |
|                                                                                                                                                          |                                |                           |                                |        |  |  |  |
|                                                                                                                                                               |                                | $                         | 126,243,742                    |        |  | 128,219,016 |  |
|                                                                                                                                                          |                                |                           |                                |        |  |  |  |

----

|                                                                                                                            |                                | 2009                      |                                | 2008      |                                | 2007        |
|----------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------|--------------------------------|-----------|--------------------------------|-------------|
|                                                                                                                            |       |                           |       | Unaudited |       | Unaudited   |
| Sales (note 6)                                                                                                             |                                | $     | 205,848,768                    |           |                                | 199,681,170 |  |  | 158,474,198 |  |
| Sales commissions                                                                                                          |                                |                           | (7,000,315                     | )         |                                | (7,280,082  | ) |  | (5,284,648 | ) |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
|                    Net sales                              |                                |                           | 198,848,453                    |           |                                | 192,401,088 |  |  | 153,189,550 |  |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
| Cost of goods sold (note 6)                                                                                                |                                |                           | 76,014,940                     |           |                                | 76,955,719  |  |  | 66,110,674 |  |
|                                                                                                                       |                                |                           |                                |           |                                |             |   |  |  |  |
|                    Gross profit                           |                                |                           | 122,833,513                    |           |                                | 115,445,369 |  |  | 87,078,876 |  |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
| Expenses (note 6):                                                                                                         |                                |                           |                                |           |                                |             |  |  |  |  |
|        Operating (mainly      royalties)                                                     |                                |                           | 10,408,795                     |           |                                | 11,727,821  |  |  | 10,079,379 |  |
|             Selling                                                                          |                                |                           | 65,546,752                     |           |                                | 81,272,733  |  |  | 58,937,618 |  |
|        Administrative                                                                        |                                |                           | 30,759,101                     |           |                                | 23,582,782  |  |  | 18,300,644 |  |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
|                    Total expenses                         |                                |                           | 106,714,648                    |           |                                | 116,583,336 |  |  | 87,317,641 |  |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
|                    Operating income (loss)                |                                |                           | 16,118,865                     |           |                                | (1,137,967  | ) |  | (238,765 | ) |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
| Other income, net:                                                                                                         |                                |                           |                                |           |                                |             |  |  |  |  |
|        Gain (loss) on sale of      property and equipment                                    |                                |                           | 31,489                         |           |                                | (8,419      | ) |  | 3,686 |  |
|             Other expenses, net                                                              |                                |                           | (468,158                       | )         |                                | (2,675,071  | ) |  | (1,745,564 | ) |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
|                    Other expenses, net                    |                                |                           | (436,669                       | )         |                                | (2,683,490  | ) |  | (1,741,878 | ) |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
| Comprehensive financial results (notes      3(m) and 6):                                                                   |                                |                           |                                |           |                                |             |  |  |  |  |
|        Interest income                                                                       |                                |                           | 178,002                        |           |                                | 136,332     |  |  | 141,425 |  |
|             Interest expense                                                                 |                                |                           | (2,739,998                     | )         |                                | (3,018,531  | ) |  | (3,782,391 | ) |
|        Foreign exchange gain (loss),      net                                                |                                |                           | 1,840,993                      |           |                                | (4,416,073  | ) |  | (732,465 | ) |
|             Monetary position gain                                                           |                                |                           | -                              |           |                                | -           |  |  | 1,893,406 |  |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
|                    Comprehensive financial results, net   |                                |                           | (721,003                       | )         |                                | (7,298,272  | ) |  | (2,480,025 | ) |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
|                    Income (loss) before income taxes      |                                |                           | 14,961,193                     |           |                                | (11,119,729 | ) |  | (4,460,668 | ) |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
| Income taxes (note 14):                                                                                                    |                                |                           |                                |           |                                |             |  |  |  |  |
|        Current                                                                               |                                |                           | 4,336,928                      |           |                                | 3,256,089   |  |  | 317,625 |  |
|             Deferred                                                                         |                                |                           | (2,428,870                     | )         |                                | 895,735     |  |  | 1,175,615 |  |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
|                    Total income taxes                     |                                |                           | 1,908,058                      |           |                                | 4,151,824   |  |  | 1,493,240 |  |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
|                    Net income (loss)                      |                                |                           | 13,053,135                     |           |                                | (15,271,553 | ) |  | (5,953,908 | ) |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
| Non-controlling interest                                                                                                   |                                |                           | (38,107                        | )         |                                | 28,840      |  |  | - |  |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |
|                    Net controlling interest income (loss) |                                | $                         | 13,015,028                     |           |                                | (15,242,713 | ) |  | (5,953,908 | ) |
|                                                                                                                       |                                |                           |                                |           |                                |             |  |  |  |  |

----

|                                                      |                          |               |                          |             |                     |             | Total                    |                         |                          |           |         | Total |
|------------------------------------------------------|--------------------------|---------------|--------------------------|-------------|--------------------------|-------------|--------------------------|-------------------------|--------------------------|-----------|---------|-------|
|                                                      |                          | Capital       |                          | Accumulated |                          | controlling |                          | Non-controlling         |                          | partners' |
|                                                      |      | stock         |      | (deficit)   |      | interest    |      | interest                |      | equity    |
| Balances as of January 1, 2007      (Unaudited) |                          | $   | 77,248,807               |             | (5,537,094               | )           |                          | 71,711,713              |                          |           | -       |       |  | 71,711,713 |  |
| Net comprehensive loss      (note 15) (Unaudited)    |                          |               | -                        |             |   (5,953,908   | )           |                          |   (5,953,908  | )                        |           | -       |       |  |   (5,953,908 | ) |
| Balances as of December 31, 2007      (Unaudited)    |                          | $             | 77,248,807               |             |    (11,491,002 | )           |                          |    65,757,805 |                          |           | -       |       |  |    65,757,805 |  |
| Non-controlling interest (Unaudited)                 |                          |               | -                        |             | -                        |             |                          | -                       |                          |           | 30      |       |  | 30 |  |
| Net comprehensive loss (note 15)      (Unaudited)    |                     |          | -                        |        | (15,242,713              | )           |                     | (15,242,713             | )                        |      | (28,840 | )     |   | (15,271,553 | ) |
| Balances as of      December 31, 2008 (Unaudited)    |                          |               | 77,248,807               |             | (26,733,715              | )           |                          | 50,515,092              |                          |           | (28,810 | )     |  | 50,486,282 |  |
| Net comprehensive income (note 15)                   |                          |               | -                        |             | 13,015,028               |             |                          | 13,015,028              |                          |           | 38,107  |       |  | 13,053,135 |  |
| Balances as of      December 31, 2009                |                          | $             | 77,248,807               |             | (13,718,687              | )           |                          | 63,530,120              |                          |           | 9,297   |       |  | 63,539,417 |  |
|                                                 |                          |               |                          |             |                          |             |                          |                         |                          |           |         |       |  |  |  |

----

|                                                                                                                                                                                           |      | 2009                |      | 2008 |      | 2007                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|---------------------|--------------------------|------|--------------------------|-------------------------------|
|                                                                                                                                                                                           |                          |                     |                          |      |                          | Unaudited                     |  | Unaudited |
| Cash flows from operating      activities:                                                                                                                                                |                          |                     |                          |      |                          |                               |  |  |  |  |
|        Income (loss) before income      taxes                                                                                                               |                          | $    | 14,961,193               |      |                          |    (11,119,729 | ) |  |    (4,460,668 | ) |
|             Items relating to investing activities:                                                                                                         |                          |                     |                          |      |                          |                               |  |  |  |  |
|                    Depreciation and amortization                                                                         |                          |                     | 12,881,478               |      |                          | 14,933,971                    |  |  | 18,284,875 |  |
|                    Interest income                                                                                       |                          |                     | (178,002                 | )    |                          | (136,332                      | ) |  | (113,379 | ) |
|                    Loss on sale of equipment                                                                             |                          |                     | (31,489                  | )    |                          | (8,419                        | ) |  | 3,686 |  |
|             Items relating to financing activities:                                                                                                         |                          |                     |                          |      |                          |                               |  |  |  |  |
|                    Interest expense                                                                                      |                          |                     | 2,739,998                |      |                          | 3,018,531                     |  |  | 3,372,407 |  |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |
|                           Subtotal                                                    |                          |                     | 30,373,178               |      |                          | 6,688,022                     |  |   | 17,086,921 |  |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |
|             Accounts receivable                                                                                                                             |                          |                     | 174,662                  |      |                          | (649,703                      | ) |  | 447,570 |  |
|        Accounts receivable from      related parties                                                                                                        |                          |                     | (231,172                 | )    |                          | 1,434,359                     |  |  | (105,886 | ) |
|             Other receivables                                                                                                                               |                          |                     | (285,833                 | )    |                          | 1,477,390                     |  |  | 7,396,768 |  |
|        Inventories                                                                                                                                          |                          |                     | 2,015,809                |      |                          | (3,095,729                    | ) |  | 1,870,748 |  |
|        Prepaid expenses                                                                                                                                |                          |                     | 262,747                  |      |                          | (321,022                      | ) |  | 756,651 |  |
|        Trade accounts payable,      accruals and other liabilities                                                                                          |                          |                | (8,267,666               | )    |                          | 349,894                       |  |  | 1,644,672 |  |
|             Income taxes paid                                                                                                                               |                          |                     | (7,593,017               | )    |                          | (2,501,249                    | ) |  | 1,451,045 |  |
|        Accounts payable to related      parties                                                                                                             |                          |                     | 9,039,919                |      |                          | 6,796,005                     |  |  | 1,750,217 |  |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |
|                           Net cash provided by operating activities                   |                          |                     | 25,488,627               |      |                     | 10,177,967                    |  |  | 32,298,706 |  |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |
| Cash flows from investing      activities:                                                                                                                                                |                          |                     |                          |      |                          |                               |  |  |  |  |
|        Acquisition of machinery,      furniture and equipment                                                                                               |                          |                     | (3,432,398               | )    |                          | (17,255,186                   | ) |  | (17,826,881 | ) |
|             Proceeds from sale of equipment                                                                                                                 |                     |                     | 120,000                  |      |                          | -                             |  |  | 9,374 |  |
|        Increase in other non-current      assets                                                                                                            |                          |                     | (3,523,203               | )    |                          | 952,124                       |  |  | 447,612 |  |
|             Cash loans granted                                                                                                                              |                          |                     | -                        |      |                          | (1,820,000                    | ) |  | - |  |
|        Interest received                                                                                                                                    |                          |                     | 178,002                  |      |                          | 136,332                       |  |  | 113,379 |  |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |
|                           Net cash used in investing activities                       |                          |                     | (6,657,599               | )    |                          | (17,986,730                   | ) |  | (17,256,516 | ) |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |
| Cash flows from financing      activities:                                                                                                                                                |                          |                     |                          |      |                          |                               |  |  |  |  |
|        Proceeds from loans                                                                                                                                  |                          |                     | 5,000,000                |      |                          | 21,985,793                    |  |  | - |  |
|             Interest paid                                                                                                                                   |                          |                     | (2,739,998               | )    |                          | (3,018,531                    | ) |  | (3,372,407 | ) |
|        Payments on loans                                                                                                                                    |                          |                     | (15,115,702              | )    |                          | (10,937,581                   | ) |  | (6,701,273 | ) |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |
|                           Net cash used in provided by financing activities |                          |                | (12,855,700              | )    |                          | 8,029,681                     |  |  | (10,073,680 | ) |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |
|                           Net increase in cash and cash equivalents                   |                          |                     | 5,975,328                |      |                          | 220,918                       |  |  | 4,968,510 |  |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |
| Cash and cash equivalents:                                                                                                                                                                |                          |                     |                          |      |                          |                               |  |  |  |  |
|        At beginning of year                                                                                                                                 |                          |                     | 8,907,963                |      |                          | 8,687,045                     |  |  | 3,718,535 |  |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |
|        At      end of year                                                                                                                                  |                          | $                   | 14,883,291               |      |                          | 8,907,963                     |  |  | 8,687,045 |  |
|                                                                                                                                                                                      |                          |                     |                          |      |                          |                               |  |  |  |  |

----

| (1)    |       | Financial statements authorization and      presentation-                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   |                                | On      June 11, 2010, Ignacio Cortina, Director General (CEO), authorized the      issuance of the statutory financial statements and related notes thereto.      On June 28, 2010, the accompanying financial statements and related notes      thereto were authorized.                                                                                                                                                                                                                           |
|   |
|   |                                | In      accordance with the General Corporations Law and the bylaws of Krispy      Kreme México, S. de R. L. de C. V., the partners are empowered to modify      the financial statements after issuance. The accompanying financial      statements will be submitted to the next Partners Meeting for      approval.                                                                                                                                                                          |
|   |
|   |                                | The      accompanying consolidated financial statements at December 31, 2009 and      2008 include Krispy Kreme México, S. de R. L. de C. V. and its subsidiary      Krispy Kreme de Occidente, S. de R. L. de C. V. Krispy Kreme de      Occidentes, S. de R.L. de C.V. was incorporated in October 2008 and as      such the 2007 financial statements solely include the financial position,      results of operations, and cash flows of Krispy Kreme México, S. de R.L.      de C.V. |
|   |
|   |                                | The      accompanying consolidated financial statements have been prepared in      accordance with Mexican Financial Reporting Standards (FRS) in effect as      of the balance sheet date.                                                                                                                                                                                                                                                                                                          |
|   |
| (2)    |                                | Description of business and significant      transactions-                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |
|   |                                | Description of      business-                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |
|   |                                | The      principal activity of Krispy Kreme México, S. de R. L de C. V. and      subsidiary (the Company) is to produce and sell glazed doughnuts branded      “Krispy Kreme”. The Company is a subsidiary of Controladora Topolaris, S.      A. de C. V., 70% owner, and Krispy Kreme Doughnut Corporation, 30% owner,      with which it carries out certain transactions, as described in note      6.                                                                           |
|   |
|   |                                | The      Company has no employees and, therefore, is not subject to labor      obligations. Administrative services are provided by an affiliated company      for a fee (note 6).                                                                                                                                                                                                                                                                                                                   |

----

|       |       | Significant      transactions-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |
|                           |                                | During      2009, the company opened 3 points of sale denominated Kiosks, in several      retail stores.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                           |
|                           |                                | On      October 10, 2008, a new entity, Krispy Kreme de Occidente, S. de R. L. de      C. V. was incorporated. Krispy Kreme México, S. de R. L. de C. V. holds      99% of capital stock, equivalent to $2,970 represented by one social part.                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                           |
|                           |                                | In      2008, the Company entered into a one-year agreement with Concesionaria      Vuela Compañía de Aviación, S. A. de C. V. (Volaris, related party, as      defined in note 3(l)) for an amount of $3,977,319, to provide glazed      doughnuts in exchange of advertising services for an equal amount (see      note 6). In 2009, the agreement was renewed for a fifteen-month term      ending on March 2010. During 2009, the Company carried out transactions      for $3,231,258 (see note 6) of which only $1,226,856 were carried out in      accordance to the aforementioned agreement.                                                                                 |
|                           |
|                           |                                | During      2008, the Company opened 8 Kiosks, in retail stores, including Liverpool      and Wal-Mart stores.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                           |
| (3)                            |                                | Summary of significant accounting      policies-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                           |
|                           |                                | The      preparation of consolidated financial statements requires management to      make a number of estimates and assumptions that affect the reported      amounts of assets and liabilities and the disclosure of contingent assets      and liabilities at the date of the financial statements and the reported      amounts of revenues and expenses during the reporting period. Significant      items subject to such estimates and assumptions include the carrying      amount of improvements, machinery and equipment; valuation allowances for      account receivables, inventories, and deferred income tax. Actual results      could differ from those estimates and assumptions. |
|                           |
|                           |                                | For      purposes of disclosure, “pesos” or “$” means Mexican pesos, and “dollars”      or “US$” means U.S. dollars.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

|                           |                                       |                                                                                                                  |                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------------------------|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |                                       | Significant accounting      policies applied in the preparation of the accompanying financial      statements follow: |
|                           |                                       |                                                                                                                  |                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                |         | (a)                                                                                                                   |         | Recognition of the effects of      inflation-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|       |                                            |                                                                                                                  |
|                                |                                            |                                                                                                                       |                                            | The accompanying      consolidated financial statements have been prepared in accordance with      Mexican Financial Reporting Standards (FRS) in effect as of the balance      sheet date and include the recognition of the effects of inflation on the      financial information through December 31, 2007, based on the Mexican      National Consumer Price Index (NCPI) published by Banco de México (Central      Bank). Cumulative inflation percentage of the three preceding years and      the indexes used in recognizing inflation through such years are as      follows: |

|                            |             |        |                                            |         | Inflation                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|--------|--------------------------------------------|---------|--------------------------------------------|
|                                                                                                                                                         | December 31 |   |         | NCPI    |         | Yearly |         | Cumulative |
|                                                                                                                                                              | 2009        |   |                                            | 138.541 |                                            | 3.57% |  | 14.48% |
|                                                                                                                                                              | 2008        |   |                                            | 133.761 |                                            | 6.52% |  | 15.01% |
|                                                                                                                                                              | 2007        |   |                                            | 125.564 |                                            | 3.75% |  | 11.56% |

|                                |         | (b)    |                                            | Principles of      consolidation-                                                                                                                                                                                                                                                            |
|--------------------------------|--------------------------------------------|--------|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                            |   |
|                                |                                            |        |         | The consolidated      financial statements include Krispy Kreme México, S. de R. L. de C. V. and      its 99%-owned subsidiary Krispy Kreme de Occidente, S. de R. L. de C. V.      All significant inter-company balances and transactions have been      eliminated in consolidation. |
|                                |                                            |   |
|                                |                                            | (c)    |                                            | Cash  equivalents-                                                                                                                                                                                                                                                                           |
|                                |                                            |   |
|                                |                                            |        |                                            | Cash equivalents      consist of checking accounts, foreign currency and other highly liquid      instruments. At the date of the consolidated financial statements,      interest income and foreign exchange gains and losses are included in the      statements of operations.           |

----

|                                |         | (d)    |         | Inventories and cost of      sales-                                                                                                                                                                                                                                                                         |
|--------------------------------|--------------------------------------------|--------|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                |                                            |   |
|                                |                                            |        |                                            | Inventories are      stated at the lower of historical cost determined by the average cost      method or market (replacement cost), provided that replacement cost is not      greater than net realizable value.                                                                                          |
|                                |                                            |   |
|                                |                                            |        |                                            | Cost of sales      represents the replacement cost of inventories at the time of sale,      increased, as applicable, for reductions in the replacement cost or net      realizable value of inventories during the year.                                                                                   |
|                                |                                            |   |
|                           |                                            |        |                                            | The Company      records the necessary allowances arising from damaged, obsolete, or      slow-moving inventories.                                                                                                                                                                                          |
|       |                                            |   |
|                                |                                            | (e)    |                                            | Improvements, machinery and      equipment-                                                                                                                                                                                                                                                                 |
|                                |                                            |   |
|                                |                                            |        |                                            | Improvements,      machinery and equipment are initially recorded at acquisition cost and      through December 31, 2007, were adjusted for inflation by applying NCPI      factors.                                                                                                                        |
|                                |                                            |   |
|                                |                                            |        |                                            | Amortization and      depreciation on improvements, machinery and equipment is calculated on the      straight-line method over the estimated useful lives of the assets,      determined by management. The annual amortization and depreciation rates      of the principal asset classes are as follows: |

|                                                                                                                                                              |                                                                    |         | Rates |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------|-------|
|                            | Leasehold improvements                                             |                                       |       |  | 5 | % |  |
|                                                                                                                                                              | Machinery                                                          |                                            |       | 20 | % |  |
|                                                                                                                                                              | Restaurant equipment                                               |                                            |       | 20 | % |  |
|                                                                                                                                                              | Office furniture and fixtures                                      |                                            |       | 10 | % |  |
|                                                                                                                                                              | Computer equipment                                                 |                                            |       | 30 | % |  |
|                                                                                                                                                              | Transportation equipment                                           |                                            |       | 25 | % |  |
|                                                                                                                                                              | Communications equipment                                           |                                            |       | 10 | % |  |
|                                                                                                                                                              | Forklifts                                                          |                                            |       | 25 | % |  |
|                                                                                                                                                              |                                                               |                                            |       |  |  |  |
|                                                                                                                                                              | Minor repairs      and maintenance costs are expensed as incurred. |                                            |       |  |  |  |

----

|       |         | (f)    |         | Other assets-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------|--------------------------------------------|--------|--------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                |                                            |   |
|                                |                                            |        |                                            | Other assets      include mainly franchise licenses and deposits for leased properties and      are stated at cost and, through December 31, 2007, adjusted for inflation      based on factor derived from the NCPI factors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                |                                            |   |
|                                |                                            |        |                                            | Franchise      licenses are amortized using the straight-line method over their estimated      useful lives of 15 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                |                                            |   |
|                                |                                            | (g)    |                                            | Impairment of improvements, machinery      and equipment and other assets-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                |                                            |   |
|                                |                                            |        |                                            | The Company      reviews the carrying amounts of long-lived assets in use when an      impairment indicator suggests that such amounts might not be recoverable,      considering the greater of the present value of future net cash flows or      the net sales price upon disposal. Impairment is recorded when the      carrying amount of the asset exceeds the greater of the amounts mentioned      above. Impairment charges and asset write-downs are presented in other      expenses in our consolidated financial statements.                                                                                                                                                                                                                                                                                                            |
|                                |                                            |   |
|                                |                                            | (h)    |                                            | Accruals-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                |                                            |   |
|                                |                                            |        |                                            | Based on      management’s estimates, the Company recognizes accruals for present      obligations in which the transfer of assets or the rendering of services      is virtually assured and arises as a consequence of past events,      principally expenditures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                |                                            |   |
|                                |                                            | (i)    |                                            | Income tax (IT) and income taxes (flat      rate business tax (IETU))-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                |                                            |   |
|                                |                                            |        |                                            | IT and IETU      payable for the year are determined in conformity with the tax provisions      in effect.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                |                                            |   |
|                                |                                            |        |                                            | Deferred IT and      IETU, are accounted for under the asset and liability method. Deferred tax      assets and liabilities are recognized for the future tax consequences      attributable to differences between the financial statement carrying      amounts of existing assets and liabilities and their respective tax basis,      and in the case of IT, for operating loss carry forward and other      recoverable tax credits. Deferred tax assets and liabilities are measured      using enacted tax rates expected to apply to taxable income in the years      in which those temporary differences are expected to be recovered or      settled. The effect on deferred tax assets and liabilities of a change in      tax rates is recognized in consolidated income statement in the period      that includes the enactment date. |

----

|       |         | (j)    |        | Inflation adjustment of capital stock      and retained earnings-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------------------------|--------------------------------------------|--------|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                |                                            |   |
|                                |                                            |        |                                      | Through December      31, 2007, the inflation adjustment of capital stock and retained earnings,      was determined by multiplying partner contributions and retained earnings      (deficit) by factors derived from the NCPI, which measure accumulated      inflation from the dates such contributions were made or such retained      earnings (deficit) arose through 2007 year end, date on which change was      effected to a non-inflationary economy in accordance with FRS B-10      "Effects of Inflation". The amounts thus obtained represented the constant      value of Partners’ equity. |
|                                |                                            |   |
|                                |                                            | (k)    |                                      | Revenue      recognition-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                |                                            |   |
|                                |                                            |        |                                      | The Company      recognizes revenue from the sale of its products when they are sold and      the related risks and rewards are transferred to the final      customer.                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                |                                            |   |
|                                |                                            | (l)    |                                      | Business and credit      concentrations-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                |                                            |   |
|                                |                                            |        |                                      | The Company’s      products are sold to a large number of customers without significant      concentration with any of them.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                |                                            |   |
|                                |                                            |        |                                      | The Company      acquired from its non-controlling interest investor Krispy Kreme Doughnut      Corporation, 30%, 49% and 53% of its raw material purchases in 2009, 2008      and 2007 respectively (note 6).                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                |                                            |   |
|                                |                                            |        |                                      | Furthermore, the      Company carries out transactions with certain entities, considered related      parties as they have common stockholders with Controladora Topolaris, S.      A. de C. V.                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                |                                            |   |
|                                |                                            | (m)    |                                      | Comprehensive financial results      (CFR)-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                |                                            |   |
|                                |                                            |        |                                      | The CFR includes      interest, foreign exchange, and through 2007, monetary position.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                |                                            |   |
|                                |                                            |        |                                      | Transactions in      foreign currency are recorded at the exchange rate prevailing on the date      of execution or settlement. Foreign currency assets and liabilities are      translated at the exchange rate in force at the balance sheet date.      Exchange differences arising from assets and liabilities denominated in      foreign currencies are reported in operations for the  year.                                                                                                                                                                                                                |

----

|   |                                       | Monetary position gain and      losses for 2007 were determined by multiplying the difference between      monetary assets and liabilities at the beginning of each month including      deferred taxes, by inflation factor though year end. The aggregate of      these results represent the monetary gain or loss for the year arising      from inflation, which is reported in operations for the year. |
|--------|--------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                       |                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |
|        |                                            | (n)                                                                                                                                                                                                                                                                                                                                                                                                           |  | Contingencies- |
|        |                                            |                                                                                                                                                                                                                                                                                                                                                                                                          |
|        |                                            |                                                                                                                                                                                                                                                                                                                                                                                                          |        | Liabilities for      loss contingencies are recorded when it is probable that a liability has      been incurred and the amount thereof can be reasonably estimated. When a      reasonable estimation cannot be made, qualitative disclosure is provided      in the notes to the consolidated financial statements. Contingent      revenues, earnings or assets are not recognized until realization is      assured. |
|        |                                            |                                                                                                                                                                                                                                                                                                                                                                                                          |
| (4)    |         | Foreign currency exposure and      translation-                                                                                                                                                                                                                                                                                                                                                               |
|        |                                            |                                                                                                                                                                                                                                                                                                                                                                                                          |
|        |                                            | Monetary assets and liabilities denominated in dollars translated      into the reporting currency, as of December 31, 2009 and 2008 were as      follows:                                                                                                                                                                                                                                                    |

|                                                                          |                                                                                                          |                                            | Mexican pesos |
|--------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|--------------------------------------------|---------------|
|                                                                          |                                                                                                          |         | 2009          |         | 2008 |
|              | Assets:                                                                                             |                                            |               |  |  |  |  |  |
|                                                                          |        Current                                                        |                                            | $             | 2,493,963 |  |  | 125,405 |  |
|                                                                          |                                                                                                     |
|                                                                          | Liabilities:                                                                                             |                                            |               |  |  |  |  |  |
|                                                                          |        Current                                                        |                                            |               | (24,217,763 | ) |  | (20,166,966 | ) |
|                                                                          |        Long-term                                                      |                                            |               | - |  |  | (4,422,500 | ) |
|                                                                          |                                                                                                     |
|                                                                          |                                                                                                          |                                            |               | (24,217,763 | ) |  | (24,589,466 | ) |
|                                                                          |                                                                                                     |
|                                                                          |               Net liabilities, net |                                            | $             | (21,723,800 | ) |  | (24,464,061 | ) |
|                                                                          |                                                                                                     |                                            |               |  |  |  |  |  |

----

|                                                                          | The exchange      rates used in the translation process to the reporting currency at      December 31, 2009 and the date on which the financial statements were      issued were as follows:   |
|--------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                          |                                                                                                                                                                                                |  |  |  |  |
|                                                                          |                                                                                                                                                                                                     |  |  |  | Exchange rate |
|              | Country of origin                                                                                                                                                                                   |   |         | Currency |         | Closing |         | Issue |
|                                                                          | United States                                                                                                                                                                                       |  | USD |  | 13.0437 |  | 13.5380 |

|        |                                            | At December 31,      2009 the Company did not have foreign exchange hedging      instruments. |
|--------|--------------------------------------------|-----------------------------------------------------------------------------------------------|
|        |                                            |                                                                                          |
| (5)    |         | Accounts receivable-                                                                          |
|   |
|        |                                            | Accounts      receivable consist of the following:                                            |

|                                                                          |                                              |         | 2009 |         | 2008      |
|--------------------------------------------------------------------------|----------------------------------------------|--------------------------------------------|------|--------------------------------------------|-----------|
|              | Distribuidora Liverpool,      S. A. de C. V. |                                       |      | $                                          | 1,599,120 |  | 1,732,851 |
|                                                                          | Other                                        |                                            |      | -                                          |           | 40,931 |
|                                                                          |                                         |
|                                                                          |                                              |                                            | $    | 1,599,120                                  |           | 1,773,782 |
|                                                                          |                                         |                                            |      |                                            |           |  |

| (6)    |         | Related-party transactions and      balances-                                                                                                    |
|--------|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|        |                                            | Transactions      carried out with related parties (see note 3(l)) during the years ended      December 31, 2009, 2008 and 2007, are as follows: |

|                                                                          |                                                                                                         |         | 2009 |         | 2008 |         | 2007 |
|--------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|--------------------------------------------|------|--------------------------------------------|------|--------------------------------------------|------|
|              | Sales:                                                                                                  |                                            |      |                                            |      |                                            |      |  |
|                                                                          |        Concesionaria Vuela      Compañía de Aviación, |                                            |      |                                            |      |                                            |      |  |
|                                                                          |               S.      A. de C. V. |                                            | $    | 3,231,258                                  |      | 3,977,319                                  |      | 3,238 |
|                                                                          |                                                                                                    |
|                                                                          | Purchases:                                                                                              |                                            |      |                                            |      |                                            |      |  |
|                                                                          |        Krispy Kreme Doughnut      Corporation                        |                                            | $    | 14,627,370                                 |      | 30,354,871                                 |      | 18,241,094 |
|                                                                          | Baseco, S. A. de C. V.                                                                                  |                                            |      | -                                          |      | 989,148                                    |      | - |
|                                                                          |                                                                                                    |
|                                                                          |                                                                                                         |                                            | $    | 14,627,370                                 |      | 31,344,019                                 |      | 18,241,094 |
|                                                                          |                                                                                                    |                                            |      |                                            |      |                                            |      |  |

----

|             |                                                                                                                         |   | 2009   |            | 2008    |       | 2007      |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|---|--------|-------------------------------------|---------|--------------------------------|-----------|
|                                                               | Services rendered:                                                                                                      |   |        |                                     |         |                                |           |  |
|                                                               |        Ledery de México, S. A. de C.      V.                                         |   | $      | -                                   |         | 5,237                          |           | - |
|                                                               |                                                                                                                    |
|                                                               | Services received:                                                                                                      |   |        |                                     |         |                                |           |  |
|                                                               |        Servicios Axo, S. A. de C. V.                                                      |   | $      |      32,873,460 |         | 37,433,040                     |      | 28,064,331 |
|                                                               |        Sempresa, S. A. de C. V.                                                           |   |        | 19,966,294                          |         | 26,152,110                     |           | 19,493,285 |
|                                                               |        Krispy Kreme Doughnuts Inc:                                                        |   |        |                                     |         |                                |           |  |
|                                                               |                    Royalties                           |   |        | 9,908,741                           |         | 11,261,132                     |           | 9,492,706 |
|                                                               |                    Franchise and Development      fees |   |        | 3,159,795                           |         | 954,444                        |           | - |
|                                                               |                    Advertising                         |   |        | 500,054                             |         | 466,689                        |           | 395,529 |
|                                                               |        Grupo Axo, S. C.                                                                   |   |        | 1,409,303                           |         | 1,016,862                      |           | 665,142 |
|                                                               |        Concesionaria Vuela Compañía de      Aviación,                      |   |        |                                     |         |                                |           |
|                                                               |                    S. A. de C. V.                      |   |        | 1,226,856                           |         | 3,977,319                      |           | - |
|                                                               |        Baseco, S. A. de C. V.                                                             |   |        | 386,491                             |         | 373,443                        |           | - |
|                                                               |        Servicios a Tiendas y Comisariato,      S. A. de                                   |   |        |                                     |         |                                |           |
|                                                               |                    C. V.                               |   |        | -                                   |         | -                              |           | 1,368,066 |
|                                                               |        Servicios Administrativos Monda, S. A. de C.      V.                               |   | -      |                                     | 161,022 |                                | 1,303,874 |
|                                                               |                                                                                                                    |
|                                                               |                                                                                                                    |   | $      | 69,430,994                          |         | 81,796,061                     |           | 60,782,933 |
|                                                               | Interest income:                                                                                                        |   |        |                                     |         |                           |           |  |
|                                                               | Servicios a Tiendas y Comisariato, S. A.      de C. V.                                                                  | $ | 25,175 |                                     | -       |                                | -         |
|                                                               | Servicios Axo, S. A. de C. V.                                                                                           |   |        | -                                   |         | -                              |           | 60,530 |
|                                                               |             Controladora Topolaris, S. A. de C. V.                                        |   |        | 11,038                              |         | -                              |           | - |
|                                                               |                                                                                                                    |
|                                                               |                                                                                                                    |   | $      | 36,213                              |         | -                              |           | 60,530 |
|                                                               | Interest expense:                                                                                                       |   |        |                                     |         |                                |           |  |
|                                                               | Servicios a Tiendas y Comisariato, S. A.      de C. V.                                                                  | $ | -      |                                | 96,255  |                                | -         |
|                                                               | Proud, S. A. de C. V.                                                                                                   |   |        | 26,151                              |         | 2,952                          |           | - |
|                                                               | Baseco, S. A. de C. V.                                                                                                  |   |        | -                                   |         | -                              |           | 223,896 |
|                                                               | Servicios Axo, S. A. de C. V.                                                                                           |   |        | -                                   |         | -                              |           | 173,109 |
|                                                               |                                                                                                                    |
|                                                               |                                                                                                                    |   | $      | 26,151                              |         | 99,207                         |           | 397,005 |
|                                                               |                                                                                                                    |   |        |                                |         |                           |           |  |

----

|           |                                                        | 2009                                        |         | 2008   |         | 2007   |
|--------------------------------------------------------|--------------------------------------------------------|---------------------------------------------|--------------------------------------------|--------|--------------------------------------------|--------|
|                                                        | Loans granted:                                         |                                             |                                            |        |                                            |        |  |
|                                                        | Servicios a Tiendas y Comisariato, S. A. de C. V.      | $        | 21,499                                     |        | 1,820,000                                  |        | - |
|                                                        | Controladora Topolaris, S.A. de      C.V.              |                                             | 11,389                                     |        | -                                          |        | - |
|                                                        |                                                   |
|                                                        |                                                   | $                                           | 32,888                                     |        | 1,820,000                                  |        |   |
|                                                        | Loans received:                                        |                                             |                                            |   |                                            |        |  |
|                                                   | Servicios a Tiendas y Comisariato, S. A.      de C. V. | $                                           | -                                          |        | 1,692,500                                  |        | - |
|                                                        | Proud, S. A. de C. V.                                  |                                             | -                                          |        | 353,395                                    |   | - |
|                                                        |                                              |
|                                                        |                                                        | $                                           | -                                          |        | 2,045,895                                  |        | - |
|                                                        |                                                   |                                             |                                            |        |                                            |        |  |

|           |                                                                      | 2009                                        |         | 2008                                       |
|--------------------------------------------------------|----------------------------------------------------------------------|---------------------------------------------|---------|--------------------------------------------|
|                                                        | Receivable:                                                          |                                             |         |         |  |
|                                                        |                                                                 |
|                                                        | Sempresa, S. A. de C. V.                                             | $        | 342,974 |                                            | - |
|                                                        | Servicios a Tiendas y Comisariato, S. A. de C. V.                    |                                             | 299,437 |                                            | 248,987 |
|                                                        | Controladora Topolaris, S. A. de C.      V.                          |                                             | 132,696 |                                            | 108,612 |
|                                                   | Concesionaria Vuela Compañía de Aviación S.A. de C.V. |                                             | 192,845 |                                       | - |
|                                                        | Ledery México, S. A. de C. V.                                   |                                             | 7,223   |                                       | - |
|                                                        | Servicios AXO, S. A. de C. V.                                        |                                        | -       |                                            | 365,338 |
|                                                        | Others                                                               |                                             | -       |                                            | 21,066 |
|                                                        |                                                                 |
|                                                        |                                                                      | $                                           | 975,175 |                                            | 744,003 |
|                                                        |                                                                 |                                             |         |                                            |  |

----

|           | Amounts receivable from related parties corresponds to current      account transactions which do not bear interest, nor have a specified      maturity date, except for Servicios a Tiendas y Comisariato, S. A. de C.      V. and Controladora Topolaris, S. A. de C. V., bearing interest at the      rate of TIIE plus 4 points per annum. |
|--------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                   |                                                                                                                                                                                                                                                                                                                                           |

|           | Payables:                                   |                                       |            |                          |            |
|--------------------------------------------------------|---------------------------------------------|---------------------------------------|------------|--------------------------|------------|
|                                                        |                                        |
|                                                        | Krispy Kreme Doughnut    Corporation        | $       | 17,647,398 |      | 11,803,910 |
|                                                        | Baseco, S. A. de C. V.                      |                                       | 4,041,456  |                          | 3,596,992  |
|                                                        | Servicios AXO, S. A. de C. V.               |                                       | 2,324,433  |                          | -          |
|                                                        | Grupo AXO, S. C.                            |                                  | 431,740    |                          | 68,747     |
|                                                        | Proud, S. A. de C. V.                       |                                       | 383,469    |                          | 353,395    |
|                                                   | TWF, S. A. de C. V.                         |                                       | 162,693    |                          | 162,693    |
|                                                        | STC Servicios, S. A. de C. V. de C.      V. |                                       | 127,518    |                     | -          |
|                                                        | Sempresa, S. A. de C. V.                    |                                       | -          |                          | 93,051     |
|                                                        |                                        |
|                                                        |                                             | $                                     | 25,118,707 |                          | 16,078,788 |
|                                                        |                                        |                                       |            |                          |            |

|   |                          | Amounts payable to related-parties      correspond to current account transactions which do not bear interest, nor      have a specified maturity date, except for Proud, S.A. de C. V., bearing      interest at the rate of TIIE plus 2.5 points per annum. |
|--------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (7)    |      | Other receivables-                                                                                                                                                                                                                                            |
|   |
|   |                          | Other      receivables consist of the following:                                                                                                                                                                                                              |

|           |                             | 2009                                  |      | 2008   |
|--------------------------------------------------------|-----------------------------|---------------------------------------|--------------------------|--------|
|                                                        | Recoverable value-added tax | $       | 10,811,525               |        | 10,304,873 |
|                                                        | Recoverable income taxes    |                                       | 738,088                  |        | 378,159 |
|                                                        | Tax on cash deposits        |                                       | 292,204                  |   | 818,742 |
|                                                   | Sundry debtors              |                                       | 729,010                  |        | 590,639 |
|                                                        | Others                      |                                       | -                        |        | 192,581 |
|                                                        |                        |
|                                                        |                             | $                                     | 12,570,827               |        | 12,284,994 |
|                                                        |                        |                                       |                          |        |  |

----

| (8)    |       | Inventories-                         |
|--------|--------------------------------|--------------------------------------|
|   |
|   |                                | Inventories are comprised asfollows: |

|            |                       | 2009                                  |       | 2008   |
|--------------------------------------------------------------|-----------------------|---------------------------------------|--------------------------------|--------|
|                                                         | Raw materials         | $       | 4,678,314                      |   | 6,694,123 |
|                                                              | Advances to suppliers |                                  | 50,926                         |        | 50,926 |
|                                                              |                  |
|                                                              |                  | $                                     | 4,729,240                      |        | 6,745,049 |
|                                                              |                  |                                       |                                |        |  |

| (9)    |       | Improvements, machinery and      equipment-                      |
|--------|--------------------------------|------------------------------------------------------------------|
|   |
|   |                                | Improvements, machinery and equipment comprise the    following: |

|            |                                                                    | 2009                                  |       | 2008   |
|--------------------------------------------------------------|--------------------------------------------------------------------|---------------------------------------|--------------------------------|--------|
|                                                              | Leasehold improvements                                             | $       | 51,899,526                     |        | 49,709,597 |
|                                                              | Machinery and equipment                                            |                                       | 39,649,340                     |        | 39,628,381 |
|                                                              | Restaurant equipment                                               |                                       | 19,950,458                     |        | 19,905,038 |
|                                                              | Office furniture and fixtures                                      |                                  | 20,619,641                     |   | 19,525,200 |
|                                                              | Computer equipment                                                 |                                       | 8,438,564                      |        | 8,259,268 |
|                                                              | Transportation equipment                                           |                                       | 2,793,849                      |        | 2,992,227 |
|                                                              | Communications equipment                                           |                                       | 661,945                        |        | 634,674 |
|                                                              | Forklift trucks                                                    |                                       | 467,346                        |        | 501,586 |
|                                                              |                                                               |
|                                                              |                                                                    |                                       | 144,480,669                    |        | 141,155,971 |
|                                                              | Less:                                                              |                                       |                                |        |  |
|                                                              |             Accumulated depreciation |                                       | 67,747,202                     |        | 56,036,542 |
|                                                              |                                                               |
|                                                         |                                                                    | $                                     | 76,733,467                     |        | 85,119,429 |
|                                                              |                                                               |                                       |                                |        |  |

----

| (10)   |      | Other assets -                |
|--------|--------------------------|-------------------------------|
|   |
|   |                          | Other      assets consist of: |

|            |                               | 2009                                  |      | 2008   |
|--------------------------------------------------------------|-------------------------------|---------------------------------------|--------------------------|--------|
|                                                              | Franchise licenses            | $       | 15,518,090               |   | 12,358,295 |
|                                                              | Security deposits and others  |                                       | 2,584,296                |        | 2,236,978 |
|                                                              | Software                      |                                       | 484,784                  |        | 468,694 |
|                                                              |                               |                                       |                     |        |  |
|                                                              |                               |                                       | 18,587,170               |        | 15,063,967 |
|                                                         |                               |                                       |                     |        |  |
|                                                              | Less accumulated amortization |                                  | 3,892,823                |        | 2,741,193 |
|                                                              |                          |                                       |                          |        |  |
|                                                              |                               | $                                     | 14,694,347               |        | 12,322,774 |
|                                                              |                          |                                       |                     |        |  |

| (11)   |      | Accruals-                      |
|--------|--------------------------|--------------------------------|
|   |
|   |                          | Accruals include thefollowing: |

|            |                                 |                                       |                          |      |                          | Professional |                          |          |                          |        | Administrative |   |  |            |
|--------------------------------------------------------------|---------------------------------|---------------------------------------|--------------------------|------|--------------------------|--------------|--------------------------|----------|--------------------------|--------|----------------|--------|--|------------|
|                                                              |                                 | Electricity                           |      | fees |      | Water        |      | services |      | Total  |
|                                                              | Balances at December 31, 2008   | $       | 2,243,755                |      |                          | -            |                          | 745,004  |                          |        | 418,752        |        |  | 3,407,511  |  |
|                                                              | Increases charged to operations |                                  | 1,566,075                |      |                          | 150,000      |                          | 394,295  |                     |   | 326,450        |   |  | 2,436,820  |  |
|                                                              |                            |
|                                                              | Payments and/or Cancellations   |                                       | (1,077,558               | )    |                          | -            |                          | (482,345 | )                        |        | (418,752       | )      |  | (1,978,655 | ) |
|                                                              |                            |
|                                                              | Balances at December 31, 2009   | $                                     | 2,732,272                |      |                          | 150,000      |                          | 656,954  |                          |        | 326,450        |        |  | 3,865,676  |  |
|                                                              |                            |                                       |                          |      |                          |              |                          |          |                          |        |                |        |  |            |  |

----

| (12)   |      | Notes payable to banks  -                          |
|--------|--------------------------|----------------------------------------------------|
|   |
|   |                          | The long-term      debt consists of the following: |

|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       | 2009                                  |       | 2008   |
|--------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------|--------------------------------|--------|
|                                                              | Credit line in pesos granted by IXE      BANCO, S.A. Institución de Banca Múltiple (IXE) to Krispy Kreme México, S.      de R. L. de C. V. (debtor) and BASECO, S. A. de C. V. (Guarantor); dated      October 7, 2009, for up to $8,000,000, to finance its working capital.      Payable in 36 months and bearing interest at the rate TIIE plus 4.5 points      per annum, maturing in October, 2011. As of December 31, 2009, the Company      has withdrawn $5,000,000 of the available credit line and paid off      $416,664. |                                | $       | 4,583,336                      |        | - |
|                                                         |
|                                                              | Promissory note with HSBC bearing      interest at Libor plus 3 points (5.91% average in 2009 and 8.25% average      in 2008), maturing in August 2010.                                                                                                                                                                                                                                                                                                                                                                                             |                           |                                  | 4,357,232                      |   | 11,056,270 |
|                                                         |
|                                                              | Unsecured credit in pesos granted by      BBVA Bancomer, bearing interest at the TIIE rate plus 3.25% on the due      balance (9.16% average in 2009 and 11.52% average in 2008) dated August      2006, for up to $15,000,000 payable in 60 monthly, maturing in august      2011.                                                                                                                                                                                                                                                                 |                                |                                       | 5,000,000                      |        | 8,000,000 |
|                                                         |
|                                                              | Revolving credit line in pesos granted      by BBVA Bancomer, bearing interest at the TIIE rate plus 2.75%, for up to      $ 5,000,000, matured in august 2009.                                                                                                                                                                                                                                                                                                                                                                                     |                                |                                       | -                              |        | 5,000,000 |
|                                                         |
|                                                              |       Total long-term debt,      brought forward                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                |                                       | 13,940,568                     |        | 24,056,270 |
|                                                         |
|                                                              | Less current installments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                |                                       | 9,810,153                      |        | 18,686,086 |
|                                                         |
|                                                              |       Long-term debt,      excluding current installments                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                | $                                     | 4,130,415                      |        | 5,370,184 |
|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                |                                       |                                |        |  |
|                                                              | Yearly maturities of long-term debt are      as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                |                                       |                                |        |  |
|                                                         |
|                                                              | 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                |                                       | 2,880,391                      |        |  |
|                                                              | 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                |                                       | 1,250,024                      |        |  |
|                                                         |
|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                |                                       | 4,130,415                      |        |  |
|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                |                                       |                                |        |   |
|                                                              | Interest expense on loans for the years ended December 31, 2009,      2008, and 2007 aggregated $1,438,518, $2,479,643 and $3,479,731      respectively.                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                              | Bank loans establish certain affirmative and negative covenants,      the most significant of which refer to compliance with certain financial      ratios, comprehensive insurance, safekeeping and preservation of pledged      assets, as well as acquiring direct or contingent liabilities or any other      contractual debts. As of December 31, 2009 and as of the date these      financial statements were issued, the Company was in compliance with all      these covenants.                                                           |

----

| (13)   |       | Operadora de Servicios Mega, S. A. de C.      V. Sofom, E. N. R. (MEGA)-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   |                                | The account payable to MEGA, results      from an unsecured loan in pesos bearing interest at 10% per annum, which      does not include a specific maturity date. Interest expense on loans for      the years ended December 31, 2009 and 2008, amount to $1,263,448 and      $244,791, respectively.                                                                                                                                                                                                                                                                            |
|   |
| (14)   |                                | Tax on earnings (income tax (IT) and      flat rate business tax (IETU)-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |
|   |                                | The consolidated financial statement at      December 31, 2009 reflects the income taxes of each entity within the      consolidation calculated on a separate company basis.                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |
|   |                                | Under the current tax legislation,      companies must pay the greater of IT or IETU. If IETU is payable, the      payment will be considered final i.e. not subject to recovery in      subsequent years. The IT Law in effect as of December 31, 2009 provides      for an IT rate of 28%, while in accordance with the tax reforms effective      as of January 1, 2010, the IT rate for fiscal years 2010 to 2012 is 30%,      for 2013 the rate shall be 29% and 2014 and thereafter, the rate is 28%.      The IETU rate is 17% for 2009 and 17.5% for 2010 and  thereafter. |
|   |
|   |                                | Because management estimates that the      tax payable in future years will be IT, deferred tax effects as of      December 31, 2009 and 2008 have been recorded on the IT basis. The      subsidiary company estimates that the tax payable in future years will be      IETU. Consequently, deferred tax of the subsidiary was recorded on IETU      basis and it is presented separately.                                                                                                                                                                                       |
|   |
|   |                                | The      income tax expense is as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

|             |               | 2009                                  |       | 2008 |
|--------------------------------------------------------------------|---------------|---------------------------------------|--------------------------------|------|
|                                                                    | Current IETU  | $       | 2,588,161                      |      |  | 2,794,839 |
|                                                                    | Current IT    |                                       | 1,748,767                      |      |  | 461,250 |
|                                                                    | Deferred IETU |                                       | (3,117,403                     | )    |   | 895,735 |
|                                                               | Deferred IT   |                                  | 688,533                        |      |  | - |
|                                                                    |          |
|                                                                    |               | $                                     | 1,908,058                      |      |  | 4,151,824 |

----

|            | Income tax attributable to loss from income taxes differed from the      amounts computed by applying the Mexican statutory rates of 28% for it and      / or 17% for IETU to income (loss), as a result of the items are as      follows: |
|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                         |                                                                                                                                                                                                                             |

|                 |                                                             | 2009                                  |                                | 2008 |
|--------------------------------------------------------------------------------------------|-------------------------------------------------------------|---------------------------------------|--------------------------------|------|
|                                                                                            |                                                             | IETU                                  |       | ISR  |       | IETU |
|                                                                                            | Computed “expected” expense      (benefit)      | $       | 2,074,732                      |      |  | 1,849,819 |  |  | (1,834,755 | ) |
|                                                                                            | Increase (reduction) resulting from:                        |                                       |                                |      |  |  |  |  |  |  |
|                                                                                            | Non-deductible expenses for IT      purposes                |                                       | -                              |      |  | 90,441 |  |  | 482,133 |  |
|                                                                                            | Effect of inflation, net                                    |                                  | -                              |      |  | 108,339 |  |  | - |  |
|                                                                                            | Interest, net                                               |                                       | 181,566                        |      |  | - |  |  | 429,045 |  |
|                                                                                            | Royalties paid to related parties                           |                                       | 1,313,502                      |      |  | - |  |  | 2,412,314 |  |
|                                                                                            | Collection of balances dating back to      2007             |                                       | -                              |      |  | - |  |  | (212,697 | ) |
|                                                                                       | Payments dating back to 2007 balances                       |                                       | -                              |      |   | - |  |  | 1,053,166 |  |
|                                                                                            | Enacted changes in tax laws and rates      effect           |                                       | -                              |      |  | - |   |  | (109,798 | ) |
|                                                                                            | Deferred IETU                                               |                                       | (3,733,090                     | )    |  | - |  |   | - |  |
|                                                                                            | Equity method                                               |                                       | (632,841                       | )    |  | - |  |  | 471,099 |  |
|                                                                                            | Foreign exchange                                            |                                       | (316,467                       | )    |  | - |  |  | 727,852 |  |
|                                                                                            | IT expense deferred                                         |                                       | 688,532                        |      |  | - |  |  | 461,250 |  |
|                                                                                            | Others, net                                                 |                                       | (32,331                        | )    |  | (299,832 | ) |  | 272,215 |  |
|                                                                                            |                                                        |
|                                                                                            |             Computed IETU- IT |                                       | (456,397                       | )    |  | 1,748,767 |  |  | 4,151,824 |  |
|                                                                                            |                                                        |
|                                                                                            | Effect of IETU                                              |                                       | -                              |      |  | 615,688 |  |  | - |  |
|                                                                                            |                                                        |
|                                                                                            | IETU expense (benefit)                                      | $                                     | (456,397                       | )    |  | 2,364,455 |  |  | 4,151,824 |  |
|                                                                                            |                                                        |                                       |                                |      |  |  |  |  |  |  |

----

|           | The tax effects of temporary differences that give rise to      significant portions of the deferred tax assets and liabilities, at      December 31, 2009 and 2008 are presented as follows: |
|--------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                   |                                                                                                                                                                                     |

|           |                                                                                                                                                                    | 2009   |                          | 2008   |
|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                        |                                                                                                                                                                    | ISR    |      | IETU   |      | IETU |
|                                                        | Deferred tax assets:                                                                                                                                               |        |                          |        |  |  |  |  |
|                                                        |        Suppliers                                                                                                                     | $      | -                        |        | 84,372 |  | 2,870,986 |  |
|                                                        |             Accruals                                                                                                                 |        | 1,051,702                |        | 63,000 |   | 579,277 |  |
|                                                        |        Related parties                                                                                                               |        | -                        |        | 1,058,254 |  | 2,098,045 |  |
|                                                        |        Net      operating loss carry forwards                                                                                        |        | 75,037                   |        | - |  | - |  |
|                                                        |                                                                                                                                                               |
|                                                        |                                                                                                                                                               |
|                                                        |                           Total gross deferred tax assets      |        | 1,126,739                |        | 1,205,626 |  | 5,548,308 |  |
|                                                        |                                                                                                                                                               |
|                                                        | Deferred tax liabilities:                                                                                                                                          |        |                          |        |  |  |  |  |
|                                                   |        Accounts receivable and others      accounts receivable                                                                       |        | -                        |        | 1,029 |  | 915,774 |  |
|                                                        |             Related parties                                                                                                          |        | -                        |        | - |  | 1,127,697 |  |
|                                                        |        Inventories                                                                                                                   |   | -                        |        | 61,283 |  | 596,808 |  |
|                                                        |             Improvements, machinery and equipment and other assets                                                                   |        | 1,815,272                |   | 2,506,801 |  | 7,395,984 |  |
|                                                        |                                                                                                                                                               |
|                                                        |                           Total gross deferred tax liabilities |        | 1,815,272                |        | 2,569,113 |  | 10,036,263 |  |
|                                                        |                                                                                                                                                               |
|                                                        |                           Deferred tax liability               |        | 688,533                  |        | 1,363,487 |  | 4,487,955 |  |
|                                                        |                                                                                                                                                               |
|                                                        |                           Insufficient provision               |        | -                        |        | - |  | (7,065 | ) |
|                                                        |                                                                                                                                                               |
|                                                        |                           Net deferred tax liability           | $      | 688,533                  |        | 1,363,487 |  | 4,480,890 |  |
|                                                        |                                                                                                                                                               |        |                          |        |  |  |  |  |

----

|   |                                | In assessing the realizability of deferred tax assets, management      considers whether it is more likely than not that some portion or all of      the deferred tax assets will not be realized. The ultimate realization of      deferred tax assets is dependent upon the generation of future taxable      income during the periods in which those temporary differences become      deductible. Management considers the scheduled reversal of deferred tax      liabilities, projected future taxable income, and tax planning strategies      in making this assessment. |
|--------|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   |                                | The IETU Law establishes a rate of 16.5% for 2008, 17% for 2009 and      17.5% for 2010 and thereafter. As a result of this change in rates, during      the year ended December 31, 2009 and 2008 the Company recognized an      increase in net deferred tax liabilities of $109,798, which was recorded      in the income statement in 2008.                                                                                                                                                                                                                                  |
|   |
| (15)   |       | Partners’ equity-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |
|   |                                | The principal characteristics of Partners’ equity are described      below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |
|   |                                | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       | Structure of capital      stock- |
|   |
|   |                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | The      capital stock at December 31, 2009, consists of 66,813,211 common,      registered social parts, with par value of one peso each, divided into two      series; 3,000 social parts of series "A", representative of the fixed      portion of Partners’ equity and 66,810,211 social parts, Series "B"      representative of the variable portion of Partners’ equity. |
|   |
|   |                                | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | Comprehensive income      (loss)- |
|   |
|   |                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | The      comprehensive income (loss) reported on the statements of Partners' equity      represents the results of the total performance of the Company during the      year. During the years ended December 31, 2009 and 2008 no items met the      requirements of Mexican FRS to be recognized directly to stockholders’      equity; therefore, comprehensive income (loss) is equivalent to net income      presented on the income consolidated statements. |
|   |
|   |                                | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | Restrictions on stockholders’      equity- |
|   |
|   |                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | Five      percent of net income for the year must be appropriated to the statutory      reserve, until it reaches one- fifth of capital stock. As of December 31,      2009, the Company has not established a statutory reserve. |
|        |                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |   |
|        |                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Partners contributions restated      as provided for by the tax law, may be refunded to partners tax-free, to      the extent that such contributions equal or exceed partners’    equity. |
|        |                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |   |
|        |                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | No dividends may be paid while      the Company has a deficit. |
|   |

----

| (16)   |       | Commitments and contingent      liabilities |
|--------|--------------------------------|---------------------------------------------|
|   |
|   |                                | (a)                                         |       | The Company      leases the premises occupied by its stores, under defined term lease      agreements. Total rental expense, reported under cost of goods sold,      aggregated $18,469,308 in 2009, $15,585,352 in 2008 and $12,171,808 in      2007. Total rents payable through 2013 under these agreements are as      follows: |
|   |

|             |               |        | Pesos     |                                    | Dollars                              |
|--------------------------------------------------------------------|---------------|--------|-----------|------------------------------------|--------------------------------------|
|                                                                    | 2010          |        | $         | 5,529,385                          |        | 349,416 |
|                                                                    | 2011          |        |           | 2,081,701                          |                                      | - |
|                                                                    | 2012 and more |   | 1,119,937 |                                    | -                                    |
|                                                                    |          |
|                                                                    |               |        | $         |      8,731,023 |                                      | 349,416 |
|                                                                    |               |        |           |                               |                                      |  |

|             | (b)    |       | The Company has      entered into service agreements with related parties, under which these      companies provide Administrative and operating services, necessary for the      Company’s operation. These agreements are for an undefined period. Total      expense under these agreements, reported under cost of goods sold and      expenses in the income statements were $54,635,548 in 2009, $65,136,477 in      2008 and $50,894,698 in 2007.                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------------------------------------------|--------|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                    |   |
|                                                                    | (c)    |                                | The Company      entered into franchising and development agreements with Krispy Kreme      Doughnut Corporation (the Corporation). The agreements grant to the      company the right to use and sub-franchise to the “Krispy Kreme” brand in      the Mexican Republic for a royalty. The Royalties are estimated at a 6%      rate over monthly gross sales. The total royalty expense under this      contract was $9,908,741 in 2009, and $11,261,132 in 2008 and $9,492,706 in      2007, and is included in operating expenses in the income statements.      According to the agreement, the Company has to pay advertising service      equivalent to 0.25% of the sales of each year. Total payments under these      agreements are reported under “operating expenses” (See note      6). |
|                                                                    |   |

----

|   |                                | (d)                                        |                                | The      Company signed a fifteen-month term agreement with Volaris (related party)      for $1,226,856 in 2009 and $3,977,319 in 2008 to provide glazed donuts in      exchange for advertising in an equivalent amount.                                                             |
|--------|--------------------------------|--------------------------------------------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   |                                | (e)                                        |                                | In      accordance with Mexican tax law, the tax authorities are entitled to      examine transactions carried out during the five years prior to the most      recent income tax return filed.                                                                                       |
|   |
|   |                                | (f)                                        |                                | In      accordance with the Income Tax Law, companies carrying out transactions      with related parties are subject to certain requirements as to the      determination of prices, which should be similar to those that would be      used in arm’s-length transactions.    |
|   |
|   |                                |                                       |                                | Should      the tax authorities examine the transactions and reject the related-party      prices, they could assess additional taxes plus the related inflation      adjustment and interest, in addition to penalties of up to 100% of the      omitted taxes.                      |
|   |
| (17)   |       | Recently issued accounting      standards- |
|   |
|   |                                | (a)                                        |       | The      CINIF has issued the FRS C-1 “Cash and cash equivalents”      – FRS C-1      supersedes Bulletin C-1 “Cash” and is effective as of January 1, 2010.      The principal changes with respect to the former standard include the      following: |

- FRS C-1 requires the presentation of cash and cash  equivalents, restricted, within the balance sheet caption of "Cash and cash  equivalents".  
- The term “demand temporary investments” is replaced by  “available demand investments”.  
- To be identified as cash equivalents, the investments should  be highly liquid, for example those with original maturities of three months  or less when purchased.  
- FRS C-1 includes the definition of the terms: acquisition  cost, restricted cash and cash equivalents, highly liquid investments, net  realizable value, nominal value and fair value. 

----

| (18)   |       | Summary of Significant Differences      between Accounting Principles Followed by the Company and Generally      Accepted Accounting Principles in the United States of      America-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   |                                | The Company’s consolidated financial statements are prepared in      accordance with Mexican FRS, which generally differ in certain significant      respects from U.S. GAAP. As described in Note 3(a) to these consolidated      financial statements, until December 31, 2007, the Company recognized the      effects of inflation on its financial information in accordance with FRS      B-10, the guidelines of which are applied prospectively and do not require      any adjustments for periods prior to January 1, 2008. For periods prior to      January 1, 2008, all of the related U.S. GAAP adjustments have also been      restated to reflect the effects of inflation. None of the adjustments to      the financial statements for the effects of inflation required under      Mexican FRS have been eliminated in determining our U.S. GAAP results for      such periods as these adjustments represent a comprehensive measure of the      effects of price level changes in the Mexican economy and, as such, were      considered a more meaningful presentation than historical cost-based      financial reporting for both Mexican and U.S. GAAP purposes. |
|   |
|   |                                | While conceptual differences in certain areas between Mexican FRS      and U.S. GAAP are in place, as they relate to the Company and further      described below, none of which were deemed significant, individually or in      the aggregate, to required adjusting our Mexican FRS partner’s equity as      of December 31 2009 and 2008 and our net income (loss) for the years ended      December 31 2009, 2008 and 2007 for them to conform with U.S. GAAP. As      such, our U.S. GAAP partner’s equity as of December 31 2009 and 2008 and      our U.S.-GAAP net income (loss) for each of the years ended December 31,      2009, 2008 and 2007 equal those determined pursuant to Mexican    FRS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |
|   |                                | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |       | Loss on impairment of long-lived      assets- |
|   |
|   |                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | For      U.S. GAAP purposes, in accordance with SFAS No. 144, long-lived assets are      reviewed for impairment whenever events or changes in circumstances      indicate that the carrying amount of an asset may not be recoverable. The      carrying amount of an asset is not recoverable when the estimated future      undiscounted cash flows expected to result from the use of the asset are      less than the carrying value of the asset. Impairment is recorded when the      carrying amount of the asset exceeds its fair value. Impairment charges      and asset write-downs are presented in selling, general and administrative      expenses in operating expenses in our U.S. GAAP consolidated financial      statements. |
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|                                                                    |        |                                | For Mexican FRS      purposes, in accordance with Bulletin C-15, the Company reviews the      carrying amounts of long-lived assets in use when an impairment indicator      suggests that such amounts might not be recoverable, considering the      greater of the present value of future net cash flows or the net sales      price upon disposal. Impairment is recorded when the carrying amount of      the asset exceeds the greater of the amounts mentioned above. Impairment      charges and asset write-downs are presented in other expenses in our      Mexican FRS consolidated financial statements.                                                                                                                                                                                                                                                                      |
|--------------------------------------------------------------------|--------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                    |   |
|                                                                    |        |                                | In 2009, 2008 and      2007, for Mexican FRS purposes, while performing its annual impairment      test using its best estimates based on reasonable and supportable      assumptions and projections, the Company did not record any impairment      charge, respectively as the carrying amount of the long-lived assets did      not exceed the present value of their future discounted cash flows. For      U.S. GAAP purposes no impairment charge was recorded as the assets were      considered to be recoverable given that the estimated undiscounted cash      flows expected to result from the use of the assets were greater then the      carrying value of the asset.                                                                                                                                                                                                      |
|                                                                    |   |
|             | (b)    |       | Deferred income      taxes-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                    |   |
|                                                                    |        |                                | Under Mexican FRS      as required by Bulletin D-4, “Income Taxes” income taxes are charged to      results as they are incurred and the Company recognizes deferred income      tax assets and liabilities for the future consequences of temporary      differences between the financial statement carrying amounts of assets and      liabilities and their respective income tax bases, measured using enacted      rates. The effects of changes in the statutory rates are accounted for in      the period that includes the enactment date. Deferred income tax assets      are also recognized for the estimated future effects of tax loss carry      forwards and asset tax credit carry forwards. Under Mexican FRS, the      effects of inflation on the deferred tax balance generated by monetary      items are recognized in the result of monetary position. |
|                                                                    |   |
|                                                                    |        |                                | Under U.S. GAAP,      as required by SFAS No. 109, “Accounting for Income Taxes”, the Company      recognizes deferred income tax assets and liabilities for the future      consequences of temporary differences between the financial statement      carrying amounts of assets and liabilities and their respective income tax      bases, measured using enacted rates. The effects of changes in the      statutory rates are accounted for in the period that includes the      enactment date. Deferred income tax assets are also recognized for the      estimated future effects of tax loss carry forwards and asset tax credit      carry forwards.                                                                                                                                                                                                                |
|                                                                    |   |

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|                                                                    |        |                                | Management considers the scheduled reversal of deferred tax      liabilities, projected future taxable income, and tax planning strategies      in making this assessment. Based upon the level of historical taxable      income, projections of future taxable income over the periods in which the      deferred tax assets are deductible and tax planning strategies that would      be taken to prevent an operating loss or tax credit carry forward from      expiring unused, management believes it is more likely than not that the      Company will realize the benefits of these deductible differences, net of      the existing valuation allowance at December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------------------------------------------------------------------|--------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                    |   |
|                                                                    |        |                                | For      U.S. GAAP purposes the Company recognizes deferred taxes each period for      the changes in the taxable portions of its distributable stockholders’      equity. The Company’s policy is to compare the deferred tax balance that      would be required if all of the stockholders’ equity were distributed.      This amount is compared to the total deferred tax balance recorded prior      to any adjustment. The difference between the amount recorded and the      amount calculated from the stockholders’ equity taxable accounts is      recorded as an adjustment to deferred taxes as of the balance sheet      date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                    |   |
|                                                                    |        |                                | Except      for a difference in the short and long-term balance sheet classification      of deferred income taxes, there is no material difference in the Company’s      deferred income taxes between U.S. GAAP and Mexican FRS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                    |   |
|             | (c)    |       | Recently adopted accounting      standards-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                    |   |
|                                                                    |        |                                | The      Codification is the single source of authoritative generally accepted      accounting principles ("GAAP") recognized by the FASB to be applied by      non-governmental entities in the preparation of financial statements in      conformity with U.S. GAAP. Rules and interpretive releases of the U.S.      Securities and Exchange Commission (the "SEC") under authority of federal      securities laws are also sources of authoritative GAAP for SEC      registrants. The Codification became effective for interim and annual      periods ending after September 15, 2009 and superseded all previously      existing non-SEC accounting and reporting standards. All other      non-grandfathered non-SEC accounting literature not included the      Codification is non-authoritative. All of the Company references to GAAP      now use the Codification's specific Accounting Standards Update ("ASU"),      Topic or Subtopic, rather than prior accounting and reporting standard.      The Codification did not change existing GAAP and, therefore, did not      affect the Company financial position a results ofoperations. |
|                                                                    |   |

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|        Assets                                | FRS    |                                      | Reconciliation |                                    |  USGAAP |
|----------------------------------------------------------------------------|--------|--------------------------------------|----------------|------------------------------------|--------------|
|                                                                            | 2009   |             | effect         |           | 2009         |
| Total current assets                                                       | $      | 34,815,928                           |                | 2,270,053                          |              | 37,085,981 |
| Improvements, machinery and equipment,      net                            |        | 76,733,467                           |                | -                                  |              | 76,733,467 |
|                                                                            |        |                                      |                |                                    |              |   |
| Other non-current assets, net                                              |        | 14,694,347                           |                | -                                  |              | 14,694,347 |
|                                                                            |        |                                      |                |                                    |              |   |
|                                                                            | $      |      126,243,742 |                | 2,270,053                          |              | 128,513,795 |
|                                                                       |        |                                      |                |                                    |              |  |
|        Liabilities and Partners'      Equity |        |                                      |                |                                    |              |  |
|                                                                       |   |                                 |           |                               |         |   |
| Total current liabilities                                                  | $      | 56,521,890                           |                | -                                  |              | 56,521,890 |
| Long-term debt                                                             |   | 4,130,415                            |                | -                                  |              | 4,130,415 |
| Deferred income taxes                                                      |        | 2,052,020                            |                |      2,270,053 |              | 4,322,073 |
|                                                                       |        |                                      |                |                                    |              |   |
|             Total liabilities                |        | 62,704,325                           |                | 2,270,053                          |              | 64,974,378 |
|                                                                       |        |                                      |                |                                    |              |  |
| Partners' equity:                                                          |        |                                      |                |                                    |              |  |
| Total controlling interest                                                 |        | 63,530,120                           |                | -                                  |              |           63,530,120 |
| Non-controlling interest                                                   |        | 9,297                                |                | -                                  |              | 9,297 |
|                                                                            |        |                                      |                |                                    |              |   |
|             Total Partners' equity           |        | 63,539,417                           |                | -                                  |              | 63,539,417 |
|                                                                  |   |                                 |           |                               |         |   |
| Commitments and contingent      liabilities                                |        |                                      |                |                                    |              |  |
|                                                                            |        |                                      |                |                                    |              |   |
|                                                                            | $      | 126,243,742                          |                | 2,270,053                          |              | 128,513,795 |
|                                                                       |        |                                      |                |                                    |              |  |

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|        Assets                                | FRS       |                                | Reconciliation |                                |  USGAAP |
|----------------------------------------------------------------------------|-----------|--------------------------------|----------------|--------------------------------|--------------|
|                                                                       | 2008      |       | effect         |       | 2008         |
|                                                                       | Unaudited |                                | Unaudited      |                                | Unaudited    |
| Total current assets                                                       | $         | 30,776,813                     |           |                                | 2,915,094    |  | 33,691,907 |   |
| Improvements, machinery and equipment, net                                 |      | 85,119,429                     |           |                                | -            |  | 85,119,429 |   |
| Other non-current assets, net                                              |      | 12,322,774                     |           |                                | -            |  | 12,322,774 |   |
|                                                                            |           |                                |                |                                |              |  |   |  |
|                                                                       | $         | 128,219,016                    |           |                                | 2,915,094    |  | 131,134,110 |   |
|                                                                       |           |                                |                |                                |              |  |  |  |
|        Liabilities and Partners'      Equity |      |                                |           |                                |         |  |  |   |
|                                                                       |           |                                |                |                                |              |  |  |  |
| Total current liabilities                                                  | $         | 67,881,660                     |           |                                | -            |  | 67,881,660 |   |
| Long-term debt                                                             |      | 5,370,184                      |           |                                | -            |  | 5,370,184 |   |
| Deferred income taxes                                                      |      | 4,480,890                      |           |                                | 2,915,094    |  | 7,395,984 |   |
|                                                                            |           |                                |                |                                |              |  |   |  |
|             Total liabilities                |      | 77,732,734                     |           |                                | 2,915,094    |  | 80,647,828 |   |
|                                                                       |           |                                |                |                                |              |  |  |  |
| Partners' equity                                                           |      |                                |           |                                |         |  |  |   |
|                                                                       |           |                                |                |                                |              |  |  |  |
|             Total controlling interest       |      | 50,515,092                     |           |                                | -            |  | 50,515,092 |   |
|                                                                            |           |                                |                |                                |              |  |   |  |
| Non-controlling interest                                                   |      | (28,810                        | )              |                                | -            |  | (28,810 | ) |
|                                                                            |           |                                |                |                                |              |  |   |  |
|             Total Partners' equity           |      | 50,486,282                     |           |                                | -            |  | 50,486,282 |   |
|                                                                       |           |                                |                |                                |              |  |  |  |
| Commitments and contingent      liabilities                                |      |                                |           |                                |         |  |  |   |
|                                                                            |           |                                |                |                                |              |  |   |  |
|                                                                       | $         | 128,219,016                    |           |                                | 2,915,094    |  | 131,134,110 |   |
|                                                                       |           |                                |                |                                |              |  |  |  |

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| (19)   |       | Recently issued financial reporting      standards-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   |                                | In      December 2007, the FASB issued ASC 805 “Business      Combinations”, and      ASC 810 “Consolidation”, an amendment to ARB No. 51. Statements      ASC 805 and ASC 810 require most identifiable assets, liabilities,      noncontrolling interests, and goodwill acquired in a business combination      to be recorded at “full fair value” and require noncontrolling interests      (previously referred to as minority interests) to be reported as a      component of equity, which changes the accounting for transactions with      noncontrolling interest holders. Both Statements are effective for periods      beginning on or after December 15, 2008, and earlier adoption is      prohibited. Statement ASC 805 will be applied to business combinations      occurring after the effective date. Statement ASC 810 will be applied      prospectively to all noncontrolling interests, including any that arose      before the effective date. All of the Company’s subsidiaries are wholly      owned, so the adoption of Statement ASC 810 is not expected to impact its      financial position and results of operations. The Company did not have any      material effect on its overall financial position or results of      operations.                                                             |
|   |
|   |                                | In May      2009 the FASB issued ASC 855, “Subsequent Events”, which establishes general standards      of accounting for and disclosure of events that occur after the balance      sheet date but before financial statements are issued or are available to      be issued. ASC 855 sets forth the period after the balance sheet date      during which management of a reporting entity should evaluate events or      transactions that may occur for potential recognition or disclosure in the      financial statements, the circumstances under which an entity should      recognize events or transactions occurring after the balance sheet date in      its financial statements and the disclosures that an entity should make      about events or transactions that occurred after the balance sheet date.      ASC 855 becomes effective to interim or annual financial periods ending      after June 15, 2009. The adoption of ASC 855 did not have any impact on      the Company’s financial or results of operations.                                                                                                                                                                                                                                                                                                                    |
|   |
|   |                                | In      June 2009, the FASB issued ASC 810, “Consolidation”, which improves financial reporting by      enterprises involved with variable interest entities. The Board developed      this pronouncement to address (1) the effects on certain provisions of      FASB Interpretation No. 46 (revised December 2003), “Consolidation of Variable Interest      Entities”, as a      result of the elimination of the qualifying special-purpose entity concept      in ASC 860, “Transfers and      Servicing”, and (2)      constituent concerns about the application of certain key provisions of      Interpretation 46(R), including those in which the accounting and      disclosures under the Interpretation do not always provide timely and      useful information about an enterprise’s involvement in a variable      interest entity. This Statement shall be effective as of the beginning of      each reporting entity’s first annual reporting period that begins after      November 15, 2009, for interim periods within that first annual reporting      period, and for interim and annual reporting periods thereafter. Earlier      application is prohibited. We are currently evaluating the impact of      adoption of ASC 810 on our consolidated financial position or results of      operations. |
|   |

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