Document:

AMENDMENT NO. 4 TO CREDIT AGREEMENT, dated as of April 15,
2009 (this “Amendment
Agreement”), among KRISPY KREME DOUGHNUT
CORPORATION, a North Carolina corporation (the “Borrower”), KRISPY KREME DOUGHNUTS,
INC., a North Carolina corporation (the “Parent Guarantor”), the SUBSIDIARY
GUARANTORS (as defined in the Credit Agreement referred to below) signatory
hereto and the LENDERS (as defined in the Credit Agreement referred to below)
signatory hereto. 

PRELIMINARY STATEMENTS 

          WHEREAS, the Borrower is party to a Credit Agreement, dated as
of February 16, 2007 (as amended by Amendment No. 1 to Credit Agreement, dated
as of June 21, 2007, as further amended by Amendment No. 2 to Credit Agreement,
dated as of January 23, 2008, and as further amended by Amendment No. 3 to
Credit Agreement, dated as of April 9, 2008, the “Credit Agreement”), among the
Borrower, the Parent Guarantor, the Subsidiary Guarantors, the Lenders, and
Credit Suisse, Cayman Islands Branch, as Administrative Agent, Collateral Agent,
Issuing Lender, and Swingline Lender. 

          WHEREAS, the Borrower has requested that the Required Lenders
agree to amend certain provisions of the Credit Agreement, and the Required
Lenders have agreed, subject to the terms and conditions hereinafter set forth
to such amendments. 

          Accordingly, in consideration of the premises and for other
good and valuable consideration, the sufficiency and receipt of all of which are
hereby acknowledged, the parties hereto hereby agree as follows: 

          SECTION 1. Defined
Terms. Capitalized terms used but not defined
herein shall be used herein as defined in the Credit Agreement as modified
hereby. 

          SECTION 2. Amendments. As of the Amendment
Effective Date (as defined below): 

          (a) The following definitions are added to Section 1.01 of the Credit
Agreement:

     (i) “‘Existing Hedging Agreement’ means,
collectively, the two interest rate swap agreements, each dated May 16, 2007
between the Borrower and Wachovia Bank, N.A. and Credit Suisse International,
and each having a notional amount of $30 million and expiring on April 30,
2010.” 

     (ii) “‘Liquidity’ means, as of the last day
of the end of an applicable Fiscal Year, the sum of (1) the aggregate amount of
cash and cash equivalents of the Borrower and the Guarantors that would not
appear as “restricted” on a consolidated balance sheet of the Parent Guarantor
as of such date plus (2) if no Default or Event of Default has occurred and is
continuing, the entire unused available balance of the total Revolving Credit
Commitments (but not to exceed $5,000,000) then in effect.” 

          (b) The definition of “Applicable Commitment Fee Rate” in Section 1.01 of the
Credit Agreement is deleted in its entirety and replaced with the following:

          “‘Applicable Commitment Fee Rate’ means
1.00% per annum.” 

          (c) The definition of “Applicable Margin” in Section 1.01 of the Credit
Agreement is deleted in its entirety and replaced with the following:

“‘Applicable Margin’ means: (a) with respect to any ABR Loan, 6.50% per annum;
and (b) with respect to any Eurodollar Loan, 7.50% per annum. The Applicable
Margin for the Incremental Loans of any Series shall be determined at the time
such Series of Loans is established pursuant to Section 2.01(c); and (i) if the
Applicable Margin for Incremental Facility Term Loans of any Series would
otherwise be more than 25 basis points higher than the Applicable Margin for
Term Loans, then the Applicable Margin for Term Loans shall be automatically
increased to a rate per annum equal to 25 basis points less than the Applicable
Margin for such Series of Incremental Facility Term Loans from and after the
earlier of the initial date of borrowing of such Incremental Facility Term Loans
or the date that the related Incremental Facility Term Loan Commitments are
established and (ii) if the Applicable Margin for Incremental Revolving Credit
Loans of any Series would otherwise be more than 25 basis points higher than the
Applicable Margin for Revolving Credit Loans, then the Applicable Margin for
Revolving Credit Loans shall be automatically increased to a rate per annum
equal to 25 basis points less than the Applicable Margin for such Series of
Incremental Facility Revolving Credit Loans from and after the date that the
related Incremental Facility Revolving Credit Commitments are established.”

          (d) The definition of “Consolidated Interest Expense” in Section 1.01 of the
Credit Agreement is deleted in its entirety and replaced with the following:

“‘Consolidated Interest
Expense’ means, for any period, interest,
whether expensed or capitalized, in respect of Indebtedness of any member of the
Financial Test Group outstanding during such period; provided that Consolidated Interest
Expense shall (i) exclude the write-off of deferred financing charges as a
result of the Transactions and the amortization of deferred financing charges
arising from the Transactions and (ii) exclude any amounts paid or accrued by
the Borrower under the Existing Hedging Agreement (provided that this clause (ii) shall
only become effective beginning with the Test Period in the first fiscal quarter
of the 2010 Fiscal Year) and (iii) otherwise be calculated after giving effect
to any Hedging Agreements other than the Existing Hedging Agreement (including
associated costs), but excluding in any case unrealized gains and losses with
respect to Hedging Agreements.” 

          (e) The definition of “Consolidated EBITDA” in Section 1.01 of the Credit
Agreement is amended by adding the phrase “(without giving effect to clause (ii)
of the proviso set forth in such definition)” immediately after the phrase
“Consolidated Interest Expense” therein. 

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          (f)
The table in Section 7.09(a) of the Credit Agreement setting forth the permitted
Consolidated Leverage Ratio levels is deleted in its entirety and replaced with
the following:

	Period  		Ratio 
	2009 Fiscal
      Year  	 	4.75 to
      1.00 
	2010 Fiscal Year 
      		4.00 to 1.00 
	First Fiscal
      Quarter of 2011 Fiscal Year  	 	3.75 to
      1.00 
	Second Fiscal Quarter of 2011
      Fiscal Year  	 	3.50 to 1.00 
	Third Fiscal
      Quarter of 2011 Fiscal Year  	 	3.25 to
      1.00 
	Fourth Fiscal Quarter of 2011
      Fiscal Year  		3.00 to 1.00 
	2012 Fiscal
      Year  	 	2.50 to
      1.00 
	2013 Fiscal Year and
      thereafter  		2.00 to 1.00
  

          (g) The table in Section 7.09(b) of the Credit Agreement setting forth the
permitted Consolidated Interest Coverage Ratio levels is deleted in its entirety
and replaced with the following:

	Period  		Ratio  
	2009 Fiscal
      Year  	 	2.50 to
      1.00 
	First Fiscal Quarter of 2010
      Fiscal Year  		2.00 to 1.00 
	Second
      Fiscal Quarter of 2010 Fiscal Year  	 	2.00
      to 1.00 
	Third Fiscal Quarter of 2010
      Fiscal Year  		2.20 to 1.00 
	Fourth
      Fiscal Quarter of 2010 Fiscal Year  	 	2.35
      to 1.00 
	First Fiscal Quarter of 2011
      Fiscal Year  	 	2.75 to 1.00 
	Second
      Fiscal Quarter of 2011 Fiscal Year  	 	2.75
      to 1.00 
	Third Fiscal Quarter of 2011
      Fiscal Year  		2.95 to 1.00 
	Fourth
      Fiscal Quarter of 2011 Fiscal Year  	 	3.15
      to 1.00 
	2012 Fiscal Year 
      		3.75 to 1.00 
	2013 Fiscal
      Year and thereafter  	 	4.50
      to 1.00 

          (h) Section 7.09(c) of the Credit Agreement is deleted in its entirety and
replaced with the following:

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“(c)
Capital Expenditures. The Parent Guarantor will not permit the aggregate amount of
Capital Expenditures by the Parent Guarantor and its Included Subsidiaries to
exceed the following respective amounts for the following respective periods:

	Period  		Amount  
	2009 Fiscal Year 
    	 	$17,500,000  
	2010 and 2011 Fiscal Year  		$10,000,000  
	2012 Fiscal Year and each
      Fiscal  	 	$20,000,000  
	Year thereafter 
	 	 

Notwithstanding
the foregoing, (i) if the aggregate amount of Capital Expenditures for any Fiscal Year shall be less than the amount permitted
by the table above to be made in such Fiscal Year, then 50% of the shortfall
shall be added to the amount of Capital Expenditures permitted for the
immediately succeeding (but not any other) Fiscal Year (hereinafter, a
“Carry-forward”) (provided that no Carry-forward shall be permitted from the 2009 Fiscal Year to
the 2010 Fiscal Year); (ii) if, as of the Test Period ending on the last day of
the 2010 Fiscal Year, (x) the Consolidated Leverage Ratio does not exceed 3.25
to 1.00 and (y) Liquidity is at least $10,000,000, the aggregate amount of
Capital Expenditures permitted for such Fiscal Year shall be increased by
$3,000,000; and (iii) if, as of the Test Period ending on the last day of the
2011 Fiscal Year, (x) the Consolidated Leverage Ratio does not exceed 2.50 to
1.00 and (y) Liquidity is at least $10,000,000, the aggregate amount of Capital
Expenditures permitted for such Fiscal Year shall be increased by $5,000,000.
For purposes of the foregoing, the amount of Capital Expenditures made during
any Fiscal Year shall be deemed to have been made first from the amount permitted by the
table above to be made in such Fiscal Year, next from any increased amount
referred to in clauses (ii) and (iii) above and last from any Carry-forward.”

          SECTION 3. Representations
and Warranties. Each of the Borrower and the
Parent Guarantor hereby represents and warrants to the undersigned Lenders that,
after giving effect to the amendments herein, (a) the representations and
warranties of the Borrower and the Parent Guarantor set forth in the Credit
Agreement, and of each Obligor in each of the other Loan Documents to which it
is a party, are true and correct in all material respects on and as of the date
hereof (except to the extent that any such representation or warranty expressly
relates to an earlier date), with each reference therein to the Credit Agreement
being deemed for purposes hereof to be a reference to the Credit Agreement as
modified hereby and (b) no Default has occurred and is continuing. 

          SECTION 4. Conditions to
Effectiveness. The amendments set forth in
Section 2 hereof shall become effective when, and only when, and as of the date
(the “Amendment Effective Date”) on which the Administrative Agent shall have received:

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     (a) counterparts of this Amendment Agreement executed by the
Borrower, each of the Guarantors, and the Required Lenders;

     (b) payment of fees and expenses of the Administrative Agent
set forth in the Amendment No. 4 to Credit Agreement Fee Letter, dated April 6,
2009, between the Administrative Agent and the Borrower (including the
reasonable and accrued fees of counsel to the Administrative Agent);

     (c) payment of fees and expenses of Wachovia Capital Markets,
LLC set forth in the Fourth Amendment Engagement Letter, dated April 2, 2009,
between Wachovia Capital Markets, LLC and the Borrower;

     (d) payment of an amendment fee for the account of each Lender
that has approved this Amendment Agreement equal to 1.00% of such Lender’s
aggregate outstanding Revolving Credit Commitments and Term Loans as of the date
hereof (prior to giving effect to the Revolving Credit Commitment reduction and
the Term Loan prepayment described in Section 5 herein); 

     (e) a favorable opinion of (i) Cahill Gordon & Reindel
LLP, special New York counsel to the Borrower and the Parent Guarantor and (ii)
Kilpatrick Stockton, LLP, special North Carolina counsel to the Borrower and the
Parent Guarantor, in each case, dated the Amendment Effective Date and in form
and substance reasonably satisfactory to the Administrative Agent covering such
matters (including without limitation the enforceability of this Amendment
Agreement and the Credit Agreement as amended hereby and the valid organization,
good standing and due authorization of the Borrower and the Parent Guarantor) as
the Administrative Agent shall reasonably request; 

     (f) (i) a certificate, signed by the Secretary or Assistant
Secretary of the Borrower and dated the Amendment Effective Date, evidencing the
organization, existence and good standing of the Borrower, the authorization of
this Amendment Agreement and any other legal matters relating to the Borrower or
this Amendment Agreement as the Administrative Agent may reasonably request, all
in form and substance reasonably satisfactory to the Administrative Agent; and
(ii) a certificate, signed by the Secretary or Assistant Secretary of the Parent
Guarantor and dated the Amendment Effective Date, evidencing the organization,
existence and good standing of the Parent Guarantor, the authorization of this
Amendment Agreement and any other legal matters relating to the Parent Guarantor
or this Amendment Agreement as the Administrative Agent may reasonably request,
all in form and substance reasonably satisfactory to the Administrative Agent;
and 

     (g) (i) a certificate, signed by a duly authorized officer of
the Borrower and dated the Amendment Effective Date, in respect of the matters
set forth in Section 3 above, in form and substance reasonably satisfactory to
the Administrative Agent; and (ii) a certificate, signed by a duly authorized
officer of the Parent Guarantor and dated the Amendment Effective Date, in
respect of the matters set forth in Section 3 above, in form and substance
reasonably satisfactory to the Administrative Agent; provided that, this Amendment Agreement shall not become effective
unless the Borrower shall have prepaid the Term Loans as described in Section 5
herein.

5

          SECTION 5. Reduction of
Revolving Credit Commitment; Prepayment of Term Loans. On the Amendment Effective Date, (a) the aggregate Revolving Credit
Commitment under the Credit Agreement shall be reduced to $25,000,000, such
reduction to be made ratably among the Revolving Credit Lenders; and (b) the
Borrower shall prepay, in accordance with the terms of the Credit Agreement, the
Term Loans in an aggregate principal amount of $20,000,000, plus accrued
interest and any payments required by Section 2.15 of the Credit Agreement. This
Section 5 shall constitute notice under Section 2.08 of the Credit Agreement to
so reduce the Revolving Credit Commitment and Section 2.10 of the Credit
Agreement to so prepay the Term Loans (it being understood that the
Administrative Agent and the Lenders party hereto hereby waive the requirements
thereunder that the Borrower provide certain prior notice of such reduction or
prepayment). 

          SECTION
6. Reference to and Effect on the Financing
Documents. 

          (a) On and after the Amendment Effective Date, each reference
in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of
like import referring to the Credit Agreement, and each reference in the other
Loan Documents to “the Credit Agreement”, “thereunder”, “thereof”, or words of
like import referring to the Credit Agreement shall mean and be a reference to
the Credit Agreement as modified hereby. 

          (b) The Credit Agreement and each of the other Loan Documents,
as specifically modified by this Amendment Agreement, are and shall continue to
be in full force and effect and are hereby in all respects ratified and
confirmed. 

          (c) The execution, delivery and effectiveness of this
Amendment Agreement shall not, except as expressly provided herein, operate as a
waiver of any right, power or remedy of the Credit Agreement or the other Loan
Documents, nor constitute a waiver of any provision of the Credit Agreement or
the other Loan Documents. 

          SECTION 7. Affirmation of
Guarantors. Each Guarantor signatory hereto
hereby consents to the amendments to the Credit Agreement effected hereby, and
hereby confirms and agrees that, notwithstanding the effectiveness of the
amendments set forth in Section 2 hereof, the obligations of such Guarantor
contained in Article III of the Credit Agreement or in any other Loan Documents
to which it is a party are, and shall remain, in full force and effect and are
hereby ratified and confirmed in all respects, except that, on and after the
effectiveness of such amendments, each reference in Article III of the Credit
Agreement and in each of the other Loan Documents to “the Credit Agreement”,
“thereunder”, “thereof” or words of like import shall mean and be a reference to
the Credit Agreement as modified by this Amendment Agreement. 

          SECTION 8. GOVERNING
LAW. THIS AMENDMENT AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

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          SECTION
9. Execution in Counterparts. This Amendment Agreement may be executed by one or
more of the parties to this Amendment Agreement on any number of separate
counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. Delivery of an executed counterpart of a
signature page to this Amendment Agreement by telecopier shall be effective as
delivery of a manually executed counterpart of this Amendment Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

7

     IN WITNESS
WHEREOF, the parties hereto have caused this Amendment Agreement to be duly
executed and delivered by their respective proper and duly authorized officers
as of the day and year first above written. 

		KRISPY
      KREME DOUGHNUT CORPORATION  
		 
		By: /s/
      Douglas R. Muir 
		       Name: Douglas R.
      Muir 
		       Title: Chief Financial
      Officer 
		  
	 	GUARANTORS: 
      
	 	 
		KRISPY KREME DOUGHNUTS,
      INC.  
		 
		GOLDEN GATE DOUGHNUTS, LLC 
      
		 
		             By: 
        	KRISPY KREME DOUGHNUT CORPORATION,  
		  	as authorized Manager  
			 
	 	PANHANDLE DOUGHNUTS, LLC 
      
		 
		           
       By:  	KRISPY KREME MANAGEMENT I, LLC,  
		  	an authorized Manager  
			 
		           
       By:  	KRISPY KREME MANAGEMENT II, LLC,  
		  	an authorized Manager  
			 
		           
       By:  	KRISPY KREME DOUGHNUT CORPORATION,  
		  	as authorized Member of Krispy Kreme Management I, 
      
		 	LLC and Krispy Kreme Management II, LLC 
			 
		NORTH TEXAS DOUGHNUTS, L.P. 
      
		 
		           
       By:  	KRISPY KREME DOUGHNUT CORPORATION,  
		  	its General Partner  
			 
		KK CANADA HOLDINGS, INC. 
      
		 
		KRISPY KREME MANAGEMENT I,
      LLC  
		 
		           
       By:  	KRISPY KREME DOUGHNUT CORPORATION,  
		  	as authorized Member 

		KRISPY KREME MANAGEMENT II,
      LLC  
		  
		             By:   
      	KRISPY KREME DOUGHNUT CORPORATION,  
		 	as authorized Member  
			  
		KRISPY KREME MANAGEMENT III,
      LLC  
		  
		             By:   
      	KRISPY KREME DOUGHNUT CORPORATION,  
	 	  	as authorized Member  
			  
	 	SOUTHERN DOUGHNUTS, LLC 
      
		  
		             By:   
      	KRISPY KREME MANAGEMENT I, LLC,  
		  	as authorized Manager  
			  
		             By:   
      	KRISPY KREME DOUGHNUT CORPORATION,  
		  	as authorized Member  
			  
		SOUTHWEST DOUGHNUTS, LLC 
      
		 
		             By:   
      	KRISPY KREME MANAGEMENT I, LLC,  
		  	as authorized Manager  
			 
		             By:   
      	KRISPY KREME DOUGHNUT CORPORATION,  
		  	as authorized Member  
			 
		NORTHEAST DOUGHNUTS, LLC 
      
		 
		             By:   
      	KRISPY KREME MANAGEMENT I, LLC,  
		  	as authorized Manager  
			  
		             By:   
      	KRISPY KREME DOUGHNUT CORPORATION,  
		  	as authorized Member  
			  
			 
		By: /s/ Douglas R. Muir 
		Name: Douglas R. Muir 
		Title: Authorized Officer 
		  
		KRISPY KREME CANADA, INC. 

		  
		By: /s/ Douglas R. Muir 
		Name: Douglas R. Muir
		Title: Vice
  President 

		HDN DEVELOPMENT CORPORATION  
		  
		  
		By: /s/ Darryl R. Marsch  
		Name:  Darryl R.
      Marsch  
		Title:  Vice
      President  

		LENDERS  
		 
		Consent of Required Lenders ReceivedEXHIBIT 10.30

FORM OF
KRISPY KREME DOUGHNUTS, INC.
NONQUALIFIED STOCK OPTION AGREEMENT

     THIS
NONQUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) is made as of (the “Grant
Date”), by and between Krispy Kreme Doughnuts, Inc., a North Carolina
corporation having its principal office at 370 Knollwood Street, Winston-Salem,
North Carolina 27103 (the “Corporation”), and (the “Optionee”). 

W I T N E S S E T H: 

     WHEREAS, the
Board of Directors and shareholders of the Corporation have approved the Krispy
Kreme Doughnuts, Inc. 2000 Stock Incentive Plan (the “Plan”), for the purposes
and subject to the provisions set forth in the Plan; 

     WHEREAS,
pursuant to authority granted to it in the Plan, the Compensation Committee of
the Board of Directors of the Corporation (the “Committee”) has, on behalf of
the Corporation, granted to Optionee an option to purchase shares of the
Corporation’s Common Stock, no par value per share (the “Common Stock” or the
“Stock”), as set forth below; and

     WHEREAS, this Agreement evidences
the grant of such option pursuant to the Plan. 

     NOW,
THEREFORE, in consideration of the foregoing, of the mutual promises set forth
below and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally
bound, agree as follows: 

1. Summary of
Grant 

Number of Shares:
Option Exercise
Price:
Date of Grant: 

2. Grant of
Option 

     This
Agreement sets forth the terms of a nonqualified option granted to the Optionee
to purchase from the Corporation, during the period specified in Sections 3 and
4 of this Agreement, a total of           shares of Common Stock, at the purchase price of           
per share (the “Exercise Price”), in accordance with the terms and conditions
stated in this Agreement. The shares of Common Stock subject to the option
granted hereby are referred to below as the “Shares,” and the option to purchase
such Shares is referred to below as the “Option.” 

3. Vesting and Exercise of
Option 

     The Option
shall vest and become exercisable in increments in accordance with the schedule
set forth below, provided that the Option shall vest and become exercisable with
respect to an increment as specified only if the Optionee has not incurred a
Termination of Employment prior to the vesting date with respect to such
increment: 

     (a) no
portion of the Option shall vest or become exercisable prior to the first
anniversary of the Grant Date;

     (b) on
the first anniversary of the Grant Date one fourth of the number of shares in
the Option (as indicated in Section 1) shall vest and become
exercisable;

     (c) on the second anniversary of the Grant
Date an additional one fourth of the number of shares in the Option (as
indicated in Section 1) shall vest and become exercisable;

     (d) on
the third anniversary of the Grant Date an additional one fourth of the number
of shares in the Option (as indicated in Section 1) shall vest and become
exercisable; and

     (e) on
the fourth anniversary of the Grant Date the remaining one fourth of the number
of shares in the Option (as indicated in Section 1) shall vest and become
exercisable.

     Notwithstanding the vesting provisions described above, the Option shall
vest and become exercisable with respect to 100% of the Shares upon the
Optionee’s Termination of Employment if the Optionee’s Termination of Employment
is due to his or her Retirement, death or Disability. 

     The schedule
set forth above is cumulative, so that Shares as to which the Option has become
vested and exercisable pursuant to the provisions above may be purchased
pursuant to exercise of the Option at any date subsequent to vesting but prior
to termination of the Option. The Option may be exercised at any time and from
time to time to purchase up to the number of Shares as to which it is then
vested and exercisable. 

     The Option
will become vested and exercisable in full upon a Change in Control, provided
that Optionee has not incurred a Termination of Employment prior to the date of
such Change in Control. In the event of a Change in Control, the Board, in its
sole discretion, may send Optionee prior written notice of the effectiveness of
such event and the last day on which Optionee may exercise the Option. In such
event, Optionee may, upon compliance with all of the terms of this Agreement and
the Plan, purchase any or all of the Shares with respect to which the Option is
vested and exercisable on or prior to the last day specified in such notice,
and, to the extent the Option is not exercised, it shall terminate at 5:00 P.M.,
Eastern Standard Time, on the last day specified in such notice. For purposes
hereof, Change in Control shall have the meaning set forth in the Plan, except
in the case of a transaction described in clauses (1) or (3) of paragraph (b) of
such definition, the consummation of such a transaction, rather than the
approval by shareholders of the Corporation of such transaction or agreement to
effect such a transaction, shall constitute a Change in Control. 

4. Termination of
Option 

     Unless
adjusted by the Committee in its sole discretion, the Option shall remain
exercisable as specified in Section 3 above until 5:00 p.m., Eastern Standard
Time, on the earliest to occur of the dates specified below, upon which date the
Option shall terminate: 

     (a) the date all of the Shares are purchased
pursuant to the terms of this Agreement; 

     (b) upon the expiration of 90 days following the Optionee’s Termination of
Employment for any reason other than his or her Retirement, death, Disability,
or for Cause; 

     (c) upon the expiration of 180 days following Optionee’s Termination of
Employment on account of his or her Disability; 

     (d) upon the expiration of 360 days following Optionee’s Termination of
Employment on account of his or her death;

2

     (e) immediately upon Optionee’s Termination of Employment for Cause, as
defined below in Section 21(a);

     (f) on the last date specified in the notice
described in Section 3 above in the event of a Change in Control; or 

     (g) on the ten year anniversary of the Grant
Date (the “Expiration Date”). 

     Upon its
termination, the Option shall have no further force or effect and Optionee shall
have no further rights under the Option or to any Shares which have not been
purchased pursuant to prior exercise of the Option. 

5. Manner of Exercise of
Option 

     (a) Exercise. The Option may be
exercised only by (i) Optionee’s completion, execution and delivery to the
Corporation of a notice of exercise and (ii) the payment to the Corporation,
pursuant to the terms of this Agreement, of an amount equal to the Exercise
Price multiplied by the number of Shares being purchased as specified in
Optionee’s notice of exercise (the “Purchase Price”). Optionee’s notice of
exercise shall be given in the manner specified in Section 10 but any exercise
of the Option shall be effective only when the items required by the preceding
sentence are actually received by the Corporation. The notice of exercise shall
be in the form attached to this Agreement. Notwithstanding anything to the
contrary in this Agreement, the Option may be exercised only if compliance with
all applicable federal and state securities laws can be effected, with the
Committee being the final arbitrator thereof, in its sole and absolute
discretion, in the event of any dispute between the Corporation and the Optionee
with regard to the interpretation of such laws.

     (b) Form of Payment. Payment of the
Purchase Price may be made (i) by check payable to the order of the Corporation
for an amount in U.S. dollars equal to the Purchase Price of such Shares; (ii)
by authorizing a third party to sell a portion of the Shares acquired upon
exercise of the Option and remit to the Corporation a sufficient portion of the
sales proceeds to pay the full Purchase Price; or (iii) by combining the above
methods. 

     (c) Issuance and Delivery of Shares. As soon as practicable following
receipt of such notice and payment, the Corporation shall notify the Optionee of
any payment required under subsection (d) below. The Corporation shall deliver a
certificate or certificates for the Shares to the Optionee as soon as
practicable after the Optionee has made any payment required under subsection
(d) below. Shares issued pursuant to the exercise of this option will be issued
only in the name of Optionee and may not be transferred into the name of any
agent of or nominee for Optionee until such time as Optionee has complied with
the terms of this Agreement. 

     (d) Withholding Obligation. Issuance
of Shares upon exercise of the Option shall be subject to the condition that the
Optionee shall pay to the Corporation, in addition to the Purchase Price, the
minimum amount the Corporation is required by law or regulation of any
governmental authority, whether federal, state or local, domestic or foreign, to
withhold in connection with such exercise of the Option, if any. In lieu of the
payment specified in this paragraph, Optionee may satisfy the obligation, in
whole or in part, by the methods specified in subsection (b) above. 

     (e) Deferral of Issuance of Shares.
Anything in this Agreement to the contrary
notwithstanding, if, at any time specified herein for the issuance of Shares to
Optionee, any law, or any regulation or requirement of the Securities and
Exchange Commission or other governmental authority having jurisdiction over
such matter shall require either the Corporation or Optionee to take any action
in connection with the Shares then to be issued, the issuance of such Shares
shall be deferred until such action shall have been taken; the Corporation shall
be under no obligation to take such action; and the Corporation shall have no
liability whatsoever as a result of the non-issuance of such shares, except to
refund to Optionee any consideration tendered in respect of the Purchase
Price.

3

     (f) Stop Transfer Instructions. The
Corporation may impose stop-transfer instructions with respect to any Shares (or
other securities) subject to any restriction set forth in this Agreement until
the restriction has been satisfied or terminates. 

6. Restrictions on Transfer of
Option 

     (a) Except as otherwise provided in subsections (b), (c) and (d) below, the
Option may not be sold, exchanged, delivered, assigned, bequeathed or gifted,
pledged, mortgaged, hypothecated or otherwise encumbered, transferred or
permitted to be transferred, or otherwise disposed of, whether voluntarily,
involuntarily or by operation of law (including, without limitation, the laws of
bankruptcy, intestacy, descent and distribution or succession) or on an absolute
or contingent basis. For purposes of this Section, any reference to Optionee
shall (when applicable) be deemed to be and include references to Optionee’s
estate, executors or administrators, personal or legal representatives and
transferees (direct or indirect). 

     (b) If
permitted by the Committee, Optionee may transfer this Option to members of his
or her Immediate Family (as defined below), to one or more trusts for the
benefit of such Immediate Family members, to one or more partnerships where such
Immediate Family members are the only partners, or to one or more limited
liability companies (or similar entities) where such Immediate Family members
are the only members or beneficial owners of the entity, if (i) the Optionee
does not receive any consideration in any form whatsoever for such transfer,
(ii) such transfer is permitted under applicable tax laws, and (iii) if the
Optionee is an “Insider,” such transfer is permitted under Rule 16b-3 of the
Exchange Act as in effect from time to time. For purposes hereof, “Immediate
Family” means the Optionee and the Optionee’s spouse, children and
grandchildren. 

     (c) In
the event of Optionee’s death, the Option may be transferred to any executor,
administrator, personal or legal representative, legatee, heir or distributee of
the estate of Optionee. 

     (d) In
the event of Optionee’s divorce, Optionee may transfer some or all of the Option
to his or her former spouse incident to Optionee’s divorce from the former
spouse. 

     (e) As
a condition precedent to the transfer of the Option, each and every prospective
transferee shall (i) provide or cause to be provided to the Corporation, at its
request, sufficient evidence of the legal right and authority of such
prospective transferee to have the Option so transferred and (ii) comply with
the provisions of this Agreement. Any Option so transferred pursuant to this
Section shall continue to be subject to the same terms and conditions in the
hands of the transferee as were applicable to said Option immediately prior to
the transfer thereof, and any reference in this Agreement to the performance of
services for the Corporation by the Optionee shall continue to refer to the
performance by the transferring Optionee. 

7. Rights Prior to
Exercise 

     Optionee
shall not be deemed for any purpose to be a shareholder of the Corporation with
respect to any Shares as to which this Option shall not have been exercised and
payment made as hereby provided and a stock certificate for such Shares actually
issued to Optionee. No adjustment will be made for dividends or other rights for
which the record date is prior to the date of such issuance.

4

8. Employment of
Optionee 

     Nothing in
this Agreement shall be construed as constituting a commitment, guarantee,
agreement or understanding of any kind or nature that the Corporation, any
Subsidiary or affiliate shall continue to employ Optionee, nor shall this
Agreement affect in any way the right of the Corporation, any Subsidiary or
affiliate to terminate the employment or other service of Optionee at any time
and for any reason. By Optionee’s execution of this Agreement, Optionee
acknowledges and agrees that Optionee’s employment or other service to the
Corporation, any Subsidiary or affiliate is “at will.” No change of Optionee’s
duties with respect to the Corporation, any Subsidiary or affiliate shall result
in, or be deemed to be, a modification of any of the terms of this Agreement.
Optionee acknowledges and agrees that the award and acceptance of the Options
pursuant to this Agreement does not entitle Optionee to future grants under the
Plan or any other plan. 

9. Burden and
Benefit 

     (a) This Agreement shall be binding upon and inure to the benefit of any
assignee or successor in interest to the Corporation, whether by merger,
consolidation or the sale of all or substantially all of the Corporation’s
assets.

     (b) This Agreement shall be binding upon and inure to the benefit of Optionee
and his or her legal representative and any person to whom the Options may be
transferred by will, the applicable laws of descent and distribution, or
otherwise in accordance with the terms of the Plan. 

10. Notices 

     Any and all
notices under this Agreement shall be in writing, and sent by hand delivery or
by certified or registered mail (return receipt requested and first-class
postage prepaid), in the case of the Corporation, to its principal executive
offices to the attention of the Chief Financial Officer, and, in the case of
Optionee, to Optionee’s address as shown on the Corporation’s records.

11. Specific
Performance 

     Strict
compliance by Optionee shall be required with each and every provision of this
Agreement. The parties hereto agree that the Shares are unique, that Optionee’s
failure to perform the obligations provided by this Agreement will result in
irreparable damage to the Corporation and that specific performance of
Optionee’s obligations may be obtained by suit in equity. 

12. Entire
Agreement 

     The parties
hereto agree that this Agreement sets forth all of the promises, agreements,
conditions, understandings, warranties, and representations between the parties
with respect to the Option and Shares and that there are no promises,
agreements, conditions, understandings, warranties, or representations, oral or
written, express or implied between the parties with respect to the Option and
Shares other than as set forth in this Agreement and in the Plan. Any
modifications or any waiver of any provision contained in this Agreement shall
not be valid unless made in writing and signed by the person or persons sought
to be bound by such waiver or modifications. 

13. Severability 

     The
provisions of the Agreement are severable and if any one or more provisions are
determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions, and any partially unenforceable provision to the extent
enforceable in any jurisdiction, shall nevertheless be binding and
enforceable.

5

14. Waiver 

     The waiver
by the Corporation of a breach of any provision of this Agreement by the
Optionee shall not operate or be construed as a waiver of any subsequent breach
by the Optionee. 

15. Terms and Conditions of
Plan 

     The Option
and the terms and conditions set forth herein are subject in all respects to the
terms and conditions of the Plan (which are incorporated herein by reference).
Except as otherwise expressly set forth herein, the capitalized terms used in
this Agreement shall have the same definitions as set forth in the Plan. To the
extent that any conflict may exist between any term or provision of this
Agreement and any term or provision of the Plan, such term or provision of the
Plan shall control. 

16. Authority of
Committee 

     All
determinations made by the Committee with respect to the interpretation,
construction and application of any provision of this Agreement shall be final,
conclusive and binding on the parties. 

17. Covenants and Representations
of Optionee 

     Optionee represents, warrants,
covenants and agrees with the Corporation as follows: 

     (a) Optionee has not relied upon the Corporation with respect to any tax
consequences related to the grant or exercise of this Option, or the disposition
of Shares purchased pursuant to its exercise. Optionee acknowledges that, as a
result of the grant and/or exercise of the Option, Optionee may incur a
substantial tax liability. Optionee assumes full responsibility for all such
consequences and the filing of all tax returns and elections Optionee may be
required or find desirable to file in connection therewith. 

     (b) Optionee will not distribute or resell any Shares (or other securities)
issuable upon exercise of the Option granted hereby in violation of law.
Optionee shall comply with all provisions of the Corporation’s Securities
Trading Policy and the Corporation’s Stock Ownership Guidelines, each as in
effect from time to time. 

     (c) The agreements, representations, warranties and covenants made by
Optionee herein with respect to the Option shall also extend to and apply to all
of the Shares issued to Optionee from time to time pursuant to exercise of the
Option. Acceptance by Optionee of any certificate representing Shares shall
constitute a confirmation by Optionee that all such agreements, representations,
warranties and covenants made herein continue to be true and correct at that
time. 

18. Limitation of
Liability 

     The
liability of the Corporation under this Agreement and in the award of the Shares
hereunder is limited to the obligations set forth herein with respect to such
award, and nothing herein contained shall be interpreted as imposing any
liability in favor of the Optionee or any others with respect to any loss, cost
or expense which Optionee or any others may incur in connection with or arising
out of any transaction involving the Shares.

6

19. Governing
Law 

     This
Agreement shall be governed by, construed and enforced in accordance with the
laws of the State of North Carolina, without giving effect to the conflict of
laws provisions thereof. 

20. Definitions 

     (a) “Retirement” shall mean the
Optionee’s Termination of Employment at a time when for an Optionee, the sum of
the Optionee’s age and years of employment with the Corporation, its
Subsidiaries and affiliates equals or exceeds 65. 

     (b) “Termination of Employment” means
the discontinuance of the Optionee’s service relationship with the Corporation,
its Subsidiaries and affiliates, including but not limited to service as an
Optionee of the Corporation, its Subsidiaries and affiliates, as a non-Optionee
member of the board of directors of the Corporation, or as a consultant or
advisor to the Corporation, its Subsidiaries and affiliates. Except to the
extent provided otherwise in an Agreement or determined otherwise by the
Committee, a Termination of Employment shall not be deemed to have occurred if
the capacity in which the Optionee provides service to the Corporation changes
(for example, a change from consultant status to Optionee status or vice versa)
or if the Optionee transfers among the various entities constituting the
Corporation and its Subsidiaries and affiliates, so long as there is no
interruption in the provision of service by the Optionee to the Corporation and
its Subsidiaries and affiliates. The determination of whether an Optionee has
incurred a Termination of Employment shall be made by the Committee in its
discretion. An Optionee shall not be deemed to have incurred a Termination of
Employment if the Optionee is on military leave, sick leave, or other bona fide
leave of absence approved by the Corporation of 180 days or fewer (or any longer
period during which the Optionee is guaranteed reemployment by statute or
contract.) In the event an Optionee’s leave of absence exceeds this period, he
or she will be deemed to have incurred a Termination of Employment on the day
following the expiration date of such period.

21. Forfeiture in the Event of
Competition and/or Solicitation or other Detrimental Acts

     In return for granting the Option to
Optionee, Optionee agrees to the following restrictions:

     (a) Optionee
expressly agrees and covenants that during the Restricted Period (as defined
below), Optionee shall not, without the prior written consent of the
Corporation, directly or indirectly:

     (i) own, manage, control, participate in, consult with, become employed by or
otherwise render services to any Competitive Business (as defined below) in the
Territory (as defined below), except that it shall not be considered a violation
of this clause for the Optionee to be a passive owner of not more than two
percent of the outstanding stock of any class of any corporation which is
publicly traded, so long as Optionee has no active participation in the business
of such corporation;

     (ii) induce or attempt to induce any customer, supplier, client or other
business relation of the Corporation or its affiliates to cease doing business
with the Corporation or its affiliates if such cessation could reasonably be
expected to result in material harm to the Corporation;

     (iii) induce or attempt to induce any Optionee of the Corporation or its
affiliates to leave the employ of the Corporation or its affiliates, or in any
way interfere with the relationship between the Corporation or its affiliates
and any person employed by them; or

7

     (iv)
violate the Corporation’s Securities Trading
Policy. 

     (b) Optionee
expressly agrees and covenants that Optionee will not, without the prior written
consent of the Corporation, directly or indirectly, disclose or use at any time
before or after Optionee’s Termination of Employment any Confidential
Information (as defined below) of which Optionee is or becomes aware, whether or
not such information is developed by Optionee, except to the extent such
disclosure or use is directly related to and appropriate in connection with
Optionee’s performance of duties assigned to Optionee by the Corporation or its
affiliates. Under all circumstances and at all times, Optionee will take all
appropriate steps to safeguard Confidential Information in his or her possession
and to protect it against disclosure, misuse, espionage, loss and
theft.

     (c) If the
Committee determines that Optionee has violated any provisions of this Section
21 or that Optionee’s employment has been terminated for Cause, then Optionee
agrees and covenants that: 

     (i) Optionee shall automatically forfeit any rights Optionee may have with
respect to the Option as of the date of such determination; and

     (ii) if Optionee has exercised all or any part of the Option within the
twelve-month period immediately preceding a violation of this Section 21 or
termination of Optionee’s employment for Cause, upon the Corporation’s demand,
Optionee shall immediately deliver to the Corporation an amount equal to the
gain realized by Optionee upon such exercise (the excess of the aggregate Fair
Market Value, on the date of exercise, of the Common Stock received upon
exercise over the aggregate exercise price of the Option with respect to such
Common Stock, then less any taxes paid which are not refundable or for which the
Optionee does not otherwise receive a tax credit or other form of
reimbursement).

     (d)
Definitions. For purposes of this Section 21, the following definitions shall apply:

     (i)
“Competitive Business” means any business listed on Exhibit A hereto.

     (ii) “Confidential Information” means information that is not generally known to the public and that was
or is used, developed or obtained by the Corporation or its affiliates in
connection with the business of the Corporation or its affiliates and which
constitutes trade secrets or information which they have attempted to protect,
which may include, but is not limited to, trade “know-how”, customer
information, supplier information, cost and pricing information, marketing and
sales techniques, strategies and programs, computer programs and software and
financial information. It shall not include information (a) required to be
disclosed by court or administrative order; (b) lawfully obtainable from other
sources or which is in the public domain through no fault of Optionee; or (c)
the disclosure of which is consented to in writing by the
Corporation.

     (iii) “Restricted Period”
means the period during which Optionee is employed by the Corporation or an
affiliate and twelve months following the date that Optionee ceases to be
employed by the Corporation or an affiliate for any reason
whatsoever.

     (iv)
“Territory” means:

     (A) The entire United States and any other country where the
Corporation or any of its Subsidiaries, joint venturers, franchisees or
affiliates has operated a retail facility at which the Corporation’s products
have been sold at any time in the one-year period ending on the last day of
Optionee’s employment with the Corporation or its affiliates;

8

     (B) In the event that the preceding clause shall be determined by
judicial action to define too broad a territory to be enforceable, then
“Territory” shall mean the entire United States;

     (C) In the event that the preceding clauses shall be determined by
judicial action to define too broad a territory to be enforceable, then
“Territory” shall mean the states in the United States where the Corporation or
any of its Subsidiaries, joint venturers, franchisees or affiliates has operated
a retail facility at which the Corporation’s products have been sold at any time
in the one-year period ending on the last day of Optionee’s employment with
Corporation or its affiliates;

     (D) In the event that the preceding clauses shall be determined by
judicial action to define too broad a territory to be enforceable, then
“Territory” shall mean the area that includes all of the areas that are within a
50-mile radius of any retail store location in the United States at which the
Corporation’s products have been sold at any time in the one-year period ending
on the last day of Optionee’s employment with the Corporation or its affiliates;
and

     (E) In the event that the preceding clauses shall be determined by
judicial action to define too broad a territory to be enforceable, then
“Territory” shall mean the entire state of North Carolina.

     (e) The
Corporation may require Optionee, in connection with the exercise of the Option,
to certify in a manner acceptable to the Corporation that Optionee has not
violated the terms of this Section 21 and may decline to give effect to such
exercise if Optionee fails so to certify. If Optionee is required to repay any
Option gain to the Corporation pursuant to this Section 21, Optionee shall pay
such amount in such manner and on such terms and conditions as the Corporation
may require, and the Corporation shall be entitled to withhold or set-off
against any other amount owed to Optionee by the Corporation or any of its
affiliates (other than any amount owed to Optionee under any retirement plan
intended to be qualified under Section 401(a) of the Code) up to any amount
sufficient to satisfy any unpaid obligation of Optionee under this Section
21.

     (f) Optionee
acknowledges and agrees that the period, scope and geographic areas of
restriction imposed upon Optionee by the provisions of Section 21 are fair and
reasonable and are reasonably required for the protection of the Corporation. In
the event that any part of this Agreement, including, without limitation,
Section 21, is held to be unenforceable or invalid, the remaining parts of
Section 21 and this Agreement shall nevertheless continue to be valid and
enforceable as though the invalid portions were not a part of this Agreement. If
any one of the provisions in this Section 21 is held to be excessively broad as
to period, scope and geographic areas, any such provision shall be construed by
limiting it to the extent necessary to be enforceable under applicable law.

     (g) Optionee
acknowledges that breach by Optionee of this Agreement would cause irreparable
harm to the Corporation and that, in the event of such breach, the Corporation
shall have, in addition to monetary damages and other remedies at law, the right
to an injunction, specific performance and other equitable relief to prevent
violations of your obligations hereunder.

9

     (h) [If the
Corporation is required to prepare an accounting restatement due to the material
noncompliance of the Corporation as a result of misconduct pertaining to any
financial reporting requirement under the securities laws (“Misconduct”), and
such Misconduct is the result of actions taken by either the Chief Executive
Officer and/or the Chief Financial Officer, then such of the Chief Executive
Officer and/or the Chief Financial Officer as have committed such Misconduct as
determined by the Committee shall reimburse the Corporation for (1) any bonus or
other incentive-based or equity-based compensation received by either or both of
them, as applicable, from the Corporation during the 12-month period following
the first public issuance or filing with the Securities and Exchange Commission
(whichever first occurs) of the financial document embodying the financial
reporting requirement that gives rise to the restatement; and (2) any profits
realized by either or both of them, as applicable, from the sale of securities
of the Corporation during that 12-month period.]1

22. Holding Period After
Resignation or Termination

     In return
for granting the Option to Optionee, Optionee agrees that in the event of
Optionee’s Termination of Employment in a manner that would otherwise permit
Optionee to exercise Optionee’s Options after leaving employment by the
Corporation, Optionee will nevertheless delay making any transactions in the
Corporation’s stock until such time as the Corporation has filed its next
succeeding quarterly (10-Q) or annual (10-K) financial filing, as applicable,
with the U. S. Securities and Exchange Commission. 

     IN WITNESS
WHEREOF, the Corporation and Optionee have executed this Agreement hereto as of
the day and year first above written. 

	
      KRISPY KREME DOUGHNUTS, INC.
      

	 
	 
	By:  	 	 
	Title:  	 	 
	  
	  
	OPTIONEE  
	  
	  
	Signature:  	 
	Printed Name:  	 

____________________

	1	      	Section 21(h) is only included in
      the Form of Nonqualified Stock Option Agreement for the Company’s Chief
      Executive Officer and Chief Financial Officer.

10

STOCK OPTION EXERCISE
FORM 

This form must be completed and returned
to Krispy Kreme’s Chief Financial Officer on or before 1:00 p.m. Eastern
Standard Time on date of exercise. 

	NAME (please
      print):  	SOCIAL SECURITY
      NO.:  
	 	 
	SECTION I  	  
	 	
	HOME ADDRESS: 
    	WORK ADDRESS: 
    
	 	
	HOME
      TELEPHONE:  	WORK
      TELEPHONE:  

SECTION II: I wish to exercise the
following options: 

	A  	B  	C  	D 

	  	NUMBER OF  	EXERCISE  	TOTAL PURCHASE
      PRICE:  
	GRANT
      DATE  	OPTIONS 
    	PRICE 
    	(COLUMN B x COLUMN
      C)  
	  	 
	 	 
  
	  	 
	 	 
  
	   	 
	 
	 
  
	  	 	 
	 
  
	TOTAL  	  	  	 

	SECTION III				SECTION IV
	I elect to pay for my shares (check
      one):	        		      	I
      elect to pay my taxes on this transaction (check one):
	 	      	  
	c		Broker assisted Cashless Exercise for Cash		c		Sell
      shares to cover taxes (Cashless Exercise for Cash/Stock)
			  
	c		Cash
      Purchase by Check (payable to Krispy Kreme Doughnuts, Inc.)		c		Check
      (payable to Krispy Kreme Doughnuts, Inc.) (required for Cash
      Purchases)

	 	 	 
	   		   
	Signature  		Date of
      Exercise  

	Return  	 	KRISPY KREME
      DOUGHNUT  
	form to: 		CORPORATION 
    
	  		ATTN: Chief Financial
      Officer  
	  		P.O. Box 83 
    
	  		Winston-Salem, NC
      27102  
		      	Phone: 336-725-2981

11

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