Document:

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                                                                    EXHIBIT 10.8

                         COLLATERAL REPURCHASE AGREEMENT

         THIS COLLATERAL REPURCHASE AGREEMENT (the "Agreement") is made and
entered into this 31st day of March, 1998 by and among KRISPY KREME DOUGHNUT
CORPORATION, a North Carolina corporation, with its principal office and place
of business at 370 Knollwood Street, Suite 500, Winston-Salem, North Carolina,
27103 ("Krispy Kreme"), MIDWEST DOUGHNUTS, L.L.C., a North Carolina limited
liability company (the "Borrower") and BANK OF BLUE VALLEY (the "Bank").

                                R E C I T A L S :

                  1. The Borrower has requested a loan from the Bank to finance
         the purchase of certain equipment, signage, furniture and fixtures for
         use at the Krispy Kreme Doughnut Shop to be established by Borrower at
         8703 West 63rd Street, Merriam, Kansas.

                  2. The Bank has agreed to lend to Borrower Seven Hundred
         Sixty-Five Thousand and 00/100 Dollars ($765,000) secured in part by a
         security interest in the Equipment (as defined below) (the "Bank Loan")
         as evidenced by the Note (as defined below); and

                  3. Therefore, the parties desire to enter into this Agreement.

         NOW THEREFORE, in consideration of the mutual promises and covenants
herein contained, the parties hereto do agree as follows:

                  1. A copy of the Note is attached hereto as EXHIBIT A and
         incorporated herein by reference (the "Note").

                  2. Bank shall provide Krispy Kreme with a copy of any notice
         to Borrower declaring a default under the Note and demanding payment in
         full and a copy of any notice to Borrower after which Bank will
         exercise its remedies under the Note. Such copies shall be sent to
         Krispy Kreme within three (3) business days of the sending of the same
         to Borrower.

                  3. In the event of a default under the Note, as long as Bank
         has fully complied with the terms of this Agreement, Bank shall have
         the right, but not the obligation, to demand by notice to Krispy Kreme
         (the "Notification") that Krispy Kreme repurchase the Equipment at a
         price equal to the lesser of (i) Three Hundred Thirty-Five Thousand and
         00/100 Dollars ($335,000.00) or (ii) the unpaid balance of the
         applicable portion of the Bank Loan (the "Unpaid Balance"). Such lesser
         amount is sometimes herein referred to as the "Purchase Price." The
         parties acknowledge that the Bank Loan is for Borrower's entire project
         for the construction, equipping and fixturing of a Krispy Kreme

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         Doughnut Shop and includes, but is not limited to, the purchase of the
         Equipment. Consequently, the unpaid Bank Loan balance will be prorated
         in relationship to the amount of the Loan for the purchase of the
         Equipment to determine the Unpaid Balance as such term is used in this
         Agreement. For example, purchase price of the Equipment is $335,000 and
         the Bank Loan is $765,000, then the Unpaid Balance, for purposes of
         this Agreement, shall be equal to 43.7% of the actual unpaid balance of
         the Bank Loan at the time of the Notification.

                  4. The parties acknowledge and agree that any default by
         Borrower under the Note or any other documents related to the Bank
         Loan, whether or not waived by the Bank, shall, at the option of Krispy
         Kreme, constitute a default under the Franchise Agreement, Development
         Agreement and any and all other agreements between Borrower and Krispy
         Kreme.

                  5. The liability of Krispy Kreme hereunder shall be subject
         to, and conditioned upon, full and complete compliance by Bank with the
         following:

                           (a) Bank shall obtain and perfect a first priority
                  security interest in the Equipment (the "Security Interest")
                  and shall continuously maintain such perfected Security
                  Interest from the moment Borrower acquires any interest in the
                  Equipment. All filings and indicia of such Security Interest
                  shall state that they are subject to the terms of this
                  Agreement.

                           (b) Bank shall notify Krispy Kreme of each advance
                  under the Bank Loan for any purchase of Equipment not from
                  Krispy Kreme within thirty (30) days after such advance is
                  made and Krispy Kreme's obligations to Bank hereunder shall be
                  reduced by the amount of any advances for which Krispy Kreme
                  does not receive such notice.

                           (c) The Security Interest shall be perfected separate
                  and apart from any other security interest of Bank in and to
                  any and all other property of Borrower.

                           (d) Any transfer of the Security Interest or any
                  interest therein to any other party shall provide that it is
                  subject to the terms of this Agreement and the transferee
                  thereof shall enter into an agreement with Krispy Kreme
                  agreeing to abide by the terms hereof.

                           (e) Bank shall not release the Security Interest in
                  the Equipment nor shall Bank take any action, or fail to take
                  any action, which action or failure to act will compromise or
                  diminish the Security Interest in any way. Provided, however,
                  Bank may release the Security Interest in portions of the
                  Equipment if Bank, at Bank's election, either (i) releases
                  Krispy Kreme from liability under this Agreement or (ii)
                  determines that Borrower reasonably desires to replace the
                  Equipment with new or different equipment (the "New
                  Equipment") of value and function comparable to that in which
                  the Security Interest is to be released and

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                  ensures that the New Equipment is obtained by Borrower prior
                  to such release and that the Security Interest applies to such
                  New Equipment as a first priority Security Interest. Upon such
                  replacement, the New Equipment shall be deemed to be
                  "Equipment" under this Agreement. Bank shall provide notice to
                  Krispy Kreme of any such release and shall provide Krispy
                  Kreme with a list of the New Equipment and evidence that the
                  Security Interest applies thereto.

                  6. Upon election by Bank to require repurchase of the
         Equipment by Krispy Kreme hereunder, Bank shall assign and transfer the
         Security Interest together with an interest in the Note equal to the
         Purchase Price to Krispy Kreme or such entity as Krispy Kreme may
         designate in writing. Borrower shall transfer all of its right, title
         and interest in the Equipment to Krispy Kreme at the same time. The
         Security Interest is agreed by the parties to also secure all of
         Borrower's obligations under this Agreement and Borrower hereby grants
         to Bank and to Krispy Kreme a security interest (which is agreed to be
         a part of the Security Interest) in the Equipment to secure Borrower's
         obligations under this Agreement. In no event shall the Security
         Interest be permitted to merge with ownership of the Equipment.

                  7. Except as permitted under subparagraph 5(e) hereof,
         Borrower shall not sell or transfer, and bank shall not consent to the
         sale or transfer, whether by gift or with or without consideration, of
         all or any part of the Equipment. Bank shall not sell or transfer the
         Equipment or any portion thereof through exercise of its rights under
         the Bank Loan and any documents executed in connection therewith, or
         otherwise, without first giving Krispy Kreme the option to purchase the
         Equipment in an amount equal to the Purchase Price. bank shall provide
         notice to Krispy Kreme of its proposed transfer and thirty (30) days in
         which to exercise its right to purchase said Equipment. At the time
         Krispy Kreme purchases the Equipment, Bank shall also transfer the
         Security Interest as provided under Paragraph 6 above. In no event
         shall the Security Interest be permitted to merge with ownership of the
         Equipment.

                  8. As used herein, the term Equipment shall mean all
         furniture, fixtures, equipment, doughnut making equipment and signage
         purchased by Borrower and reasonably necessary for the operation of a
         Krispy Kreme Doughnut Shop to be located at 8703 West 63rd Street,
         Merriam, Kansas, and as to which the Security Interest is effective.
         Krispy Kreme must approve the purchase of each item of Equipment.

                  9. Borrower consents and agrees to the terms of this Agreement
         and agrees to transfer the Equipment to Krispy Kreme immediately and at
         the same time as Krispy Kreme makes a payment of the Purchase Price to
         Bank or at the time Krispy Kreme elects to purchase the Equipment under
         Paragraph 7 hereof or as otherwise provided herein. Any such transfer
         shall be free and clear of all liens, claims or interests other than
         the Security Interest. In no event shall the Security Interest be
         permitted to merge with ownership of the Equipment.

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                  10. A partial list of the Equipment is attached as EXHIBIT B
         hereto and incorporated herein by reference. The parties agree to amend
         such list as each item of Equipment is purchased, upon the completion
         of the purchase of the Equipment, and again upon the purchase of any
         New Equipment. No New Equipment shall be considered a part of the
         Equipment until added to this EXHIBIT B.

                  11. All notices required or desired to be sent hereunder shall
         be sent by certified mail, return receipt requested, postage prepaid,
         or by a recognized overnight courier such as Airborne Express, FedEx,
         etc. and shall be effective on receipt. Any party may change the
         address for notices to it by notice sent in accordance herewith.
         Notices shall be sent the parties hereto at their respective addresses
         set forth below (or at such address may be changed as permitted
         herein):

                  IF TO KRISPY KREME:        Krispy Kreme Doughnut Corporation
                           By Mail:          P.O. Box 83
                                             Winston-Salem, NC 27102-0083
                                             Attention: Stephen A. Johnson
                           By Overnight:     370 Knollwood Street
                                             Suite 500
                                             Winston-Salem, NC 27103
                                             Attention: Stephen A. Johnson

                  IF TO BORROWER:            MIDWEST DOUGHNUTS, L.L.C.
                                             620 Staffordshire Road
                                             Winston-Salem, NC 27104
                                             Attention: Philip R.S. Waugh, Jr.

                  IF TO BANK:                Bank of Blue Valley
                           By Mail:          P.O. Box 26128
                                             Overland Park, KS 66225
                                             Attention: Lanny Drummond
                           By Overnight:     11935 Riley
                                             Overland Park, KS 66225
                                             Attention: Lanny Drummond

                  12. No failure of Bank to provide Krispy Kreme with a copy of
         any notice sent to Borrower shall relieve Krispy Kreme of its liability
         hereunder.

                  13. This Agreement shall be binding upon, and inure to the
         benefit of, the parties hereto and to the successors and assigns of
         Bank and Krispy Kreme. Borrower shall not have any right to assign this
         Agreement or any interest herein without the prior written consent of
         Bank and Krispy Kreme. Bank and Krispy Kreme shall each provide the
         other with a copy of any assignment of this Agreement. Any such
         assignment by Bank may be whole or partial, shall only be to a holder
         of an interest in the Note, and shall contain an agreement by the
         assignee to abide by the terms hereof. No assignment

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         hereof by Krispy Kreme shall relieve it of its obligations hereunder
         without Bank's consent to such release.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement
effective the day and year first above written.

                                         KRISPY KREME DOUGHNUT CORPORATION

                                         By:  /s/  Scott A. Livengood
                                         Printed Name:  Scott A. Livengood
                                         Printed Title: President

                                         BORROWER:

                                         MIDWEST DOUGHNUTS, L.L.C.

                                         By:  /s/  Jimmy B. Strickland
                                                   Jimmy B. Strickland,
                                                   Managing Member

                                         BANK:

                                         BANK OF BLUE VALLEY

                                         By:  /s/  Lanny Drummond
                                         Printed Name:  Lanny Drummond
                                         Printed Title: Vice President

                                       5<PAGE>   1
                                                                    EXHIBIT 10.9

                            GUARANTY BY CORPORATION

                               ________________________________, _______________
                                            (City)                   (State)
                               December 31, 1998
                               _________________________________________________

         For good and valuable consideration the receipt and sufficiency of
which are hereby acknowledged, and to induce Bank of Blue Valley (herein, with
its participants, successors and assigns, called "Lender"), at its option, at
any time or from time to time to make loans or extend other accommodations to or
for the account of Midwest Doughnuts, L.L.C. the ______ evidenced by the Note
comprising the Indebtedness (herein called "Borrower") or to engage in any other
transactions with Borrower, the Undersigned hereby absolutely and
unconditionally guarantees to the Lender the full and prompt payment when due,
whether at maturity or earlier by reason of acceleration or otherwise, of the
debts, liabilities and obligations described as follows:

         A.       If this [X] is checked, the Undersigned guarantees to Lender
                  the payment and performance of the debt, liability or
                  obligation of Borrower to Lender evidenced by or arising out
                  of the following: promissory note dated December 31, 1998 in
                  the amount of $765,000 and any extensions, renewals or
                  replacements thereof (hereinafter referred to as the
                  "Indebtedness").

         B.       If this [ ] is checked, the Undersigned guarantees to Lender
                  the payment and performance of each and every debt, liability
                  and obligation of every type and description which Borrower
                  may now or at any time hereafter owe to Lender (whether such
                  debt, liability or obligation now exists or is hereafter
                  created or incurred, and whether it is or may be direct or
                  indirect, due or to become due, absolute or contingent,
                  primary or secondary, liquidated or unliquidated, or joint,
                  several, or joint and several; all such debts, liabilities and
                  obligations being hereinafter collectively referred to as the
                  "Indebtedness"). Without limitation, this guaranty includes
                  the following described debt(s):______________________________

The term, "Indebtedness" as used in this guaranty shall not include any
obligations entered into between Borrower and Lender after the date hereof
(including any extensions, renewals, or replacements of such obligations).

         The Undersigned further acknowledges and agrees with Lender that:

         1. No act or thing need occur to establish the liability of the
Undersigned hereunder, and no act or thing, except full payment and discharge of
all Indebtedness, shall in any way exonerate the Undersigned or modify, reduce,
limit or release the liability of the Undersigned hereunder.

         2. This is an absolute, unconditional and continuing guaranty of
payment of the Indebtedness and shall continue to be in force and be binding
upon the Undersigned, whether or not all Indebtedness is paid in full, until
this guaranty is revoked by written notice actually received by the Lender, and
such revocation shall not be effective as to Indebtedness existing or committed
for at the time of actual receipt of such notice by the Lender, or as to any
renewals, extensions and refinancings thereof.

         The Undersigned represents and warrants to the Lender that the
Undersigned has a direct and substantial economic interest in Borrower and
expects to derive substantial benefits therefrom and from any loans and
financial accommodations resulting in the creation of Indebtedness guaranteed
hereby, and that this guaranty is given for a corporate purpose. The Undersigned
agrees to rely exclusively on the right to revoke this guaranty prospectively as
to future transactions, by written notice actually received by Lender if at any
time, in the opinion of the directors or officers of the Undersigned, the
corporate benefits then being received by the Undersigned in connection with
this guaranty are not sufficient to warrant the continuance of this guaranty as
to future Indebtedness. Accordingly, so long as this guaranty is not revoked
prospectively in accordance with this guaranty, the Lender may rely conclusively
on a continuing warranty, hereby made, that the Undersigned continues to be
benefited by this guaranty and the Lender shall have no duty to inquire into or
confirm the receipt of any such benefits, and this guaranty shall be effective
and enforceable by the Lender without regard to the receipt, nature or value of
any such benefits.

         3. If the Undersigned shall be dissolved or shall be or become
insolvent (however defined) or revoke this guaranty, then the Lender shall have
the right to declare immediately due and payable, and the Undersigned will
forthwith pay to the Lender, the full amount of all Indebtedness, whether due
and payable or unmatured. If the Undersigned voluntarily commences or there is
commenced involuntarily against the Undersigned a case under the United States
Bankruptcy Code, the full amount of all Indebtedness, whether due and payable or
unmatured, shall be immediately due and payable without demand or notice
thereof.

         4. The liability of the Undersigned hereunder shall be limited to a
principal amount of $205,000.00 of the Indebtedness (inclusive of attorney's
fees, collection of costs and enforcement expenses) (if unlimited or if no
amount is stated, the Undersigned shall be liable for all Indebtedness, without
any limitation as to amount), plus accrued interest thereon. Indebtedness may be
created and continued in any amount, whether or not in excess of such principal
amount, without affecting or impairing the liability of the Undersigned
hereunder. The Lender may apply any sums received by or available to the Lender
on account of the Indebtedness from Borrower or any other person (except the
Undersigned), from their properties, out of any collateral security or from any
other source to payment of the excess. Such application of receipts shall not
reduce, affect or impair the liability of the Undersigned hereunder. If the
liability of the Undersigned is limited to a stated amount pursuant to this
paragraph 4, any payment made by the Undersigned under this guaranty shall be
effective to reduce or discharge such liability only if accompanied by a written
transmittal document, received by the Lender, advising the Lender that such
payment is made under this guaranty for such purpose.

         5. The Undersigned will pay or reimburse the Lender for all costs and
expenses (including reasonable attorneys' fees and legal expenses) incurred by
the Lender in connection with the protection, defense or enforcement of this
guaranty in any litigation or bankruptcy or insolvency proceedings. This
guaranty includes the additional provisions on page 2 hereof, all of which are
made a part hereof.

         This guaranty is [X] unsecured; [ ] secured by a mortgage or security
agreement dated ______________________;
[ ] secured by ________________________________________________________________.

IN WITNESS WHEREOF, this guaranty has been duly executed by the Undersigned the
day and year first above written. By acceptance of this guaranty, and
notwithstanding anything contained herein to the contrary, Lender agrees that it
shall not amend, extend, renew, or replace the Indebtedness in any manner which
extends the final payment date thereof, increases the interest rate thereunder
or increases the amount of the regularly scheduled payments thereunder, or
permits the delay of any regularly scheduled payment due thereunder for more
than sixty (60) days, without the prior written consent of the Undersigned. Any
such amendment, renewal or replacement made without the prior written consent
of the Undersigned shall not be binding on the Undersigned. The Undersigned
agrees that variations in the interest rate in accordance with the variable rate
feature of the above referenced Note shall not he in violation of the foregoing.

                                       ____________________________________
                                       Krispy Kreme Doughnut Corporation

                                       __________________________________(Title)

                                       _________________________________________
                                       "Undersigned" shall refer to all entities
                                       who sign this guaranty, individually and
                                       jointly.

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                             ADDITIONAL PROVISIONS

         6. Whether or not any existing relationship between the Undersigned and
Borrower has been changed, or,. ended and whether or not this guaranty has been
revoked, the Lender may, but shall not be obligated to, enter Into transactions
resulting in the creation or continuance of Indebtedness, without any consent or
approval by the Undersigned and without any notice to the Undersigned. The
liability of the Undersigned shall not be affected or impaired by any of the
following acts or things (which the Lender Is expressly authorized to do, omit
or suffer from time to time, both before and after revocation of this guaranty,
without notice to or approval by the Undersigned): (I) any acceptance of
collateral security, guarantors, accommodation parties or sureties for any or
all Indebtedness; (ii) any one or more extensions or renewals of Indebtedness
(whether or not for longer than the original period) or any modification of the
interest rates, maturities or other contractual terms applicable to any
Indebtedness; (iii) any waiver adjustment, forbearance, compromise or Indulgence
granted to Borrower, any delay or lack of diligence in the enforcement of
Indebtedness, or any failure to Institute proceedings, file a claim, give any
required notices or otherwise protect any Indebtedness; (iv) any full or partial
release of, settlement with, or agreement not to sue, Borrower or any other
guarantor or other person liable in respect of any Indebtedness; (v) any
discharge of any evidence of Indebtedness or the acceptance of any Instrument in
renewal thereof or substitution therefor; (vi) any failure to obtain collateral
security (including rights of setoff) for Indebtedness, or to see to the proper
or sufficient creation and perfection thereof, or to establish the priority
thereof, or to protect, Insure, or enforce any collateral security; or any
release, modification, substitution, discharge, impairment, deterioration,
waste, or loss of any collateral security; (vii) any foreclosure or enforcement
of any collateral security; (viii) any transfer of any Indebtedness or any
evidence thereof; (ix) any order of application of any payments or credits upon
Indebtedness; (x) any election by the Lender under ss. 1111(b)(2) of the United
States Bankruptcy Code.

         7. The Undersigned waives any and all defenses, claims and discharges
of Borrower or any other obligor, pertaining to Indebtedness, except the defense
of discharge by payment in full. Without limiting the generality of the
foregoing, the Undersigned will not assert, plead or enforce against the Lender
any defense of waiver, release, estoppel, statute of limitations, res judicata,
statute of frauds, fraud, forgery, incapacity, minority, usury, illegality or
unenforceability which may be available to Borrower or any other person liable
in respect of any Indebtedness, or any setoff available against the Lender to
Borrower or any such other person, whether or not on account of a rated
transaction. The Undersigned expressly agrees that the Undersigned shall be and
remain liable, to the fullest extent permitted by applicable law, for any
deficiency remaining after foreclosure of any mortgage or security interest
securing Indebtedness, whether or not the liability of Borrower or any other
obligor for such deficiency is discharged pursuant to statute or judicial
decision. The undersigned shall remain obligated, to the fullest extent
permitted by law, to pay such amounts as though Borrower's obligations had not
been discharged.

         8. The Undersigned further agree(s) that the Undersigned shall be and
remain obligated to pay Indebtedness even though any other person obligated to
pay Indebtedness, Including Borrower, has such obligation discharged in
bankruptcy or otherwise discharged by law. 'Indebtedness' shall Include
post-bankruptcy petition Interest and attorneys' fees and any other amounts
which Borrower is discharged from paying or which do not accrue to Indebtedness
due to Borrower's discharge, and Undersigned shall remain obligated to pay such
amounts as fully as if Borrower's obligations had not been discharged.

         9. If any payment applied by the Lender to Indebtedness Is thereafter
set aside, recovered, rescinded or required to be returned for any reason
(including, without limitation, the bankruptcy, Insolvency or reorganization of
Borrower or any other obligor), the Indebtedness to which such payment was
applied shall for the purposes of this guaranty be deemed to have continued in
existence, notwithstanding such application, and this guaranty shall be
enforceable as to such Indebtedness as fully as if such application had never
been made.

         10. Until payment of the above-referenced Note is made in full, the
Undersigned will subordinate to any claim of Lender against Borrower any claim,
remedy or other right which the Undersigned may now have or hereafter acquire
against Borrower or any other person obligated to pay Indebtedness arising out
of the creation or performance of the Undersigned's obligation under this
guaranty, Including, without limitation, any right of subrogation, contribution,
reimbursement, indemnification, exoneration or any right to participate in any
claim or remedy the Undersigned may have against the Borrower, collateral, or
other party obligated for Borrower's debt, whether or not such claim, remedy, or
right arises In equity, or under contract, statute or common law.

         11. The Undersigned waives presentment, demand for payment, notice of
dishonor or nonpayment, and protest any instrument evidencing Indebtedness. The
Lender shall not be required first to resort for payment of the indebtedness to
Borrower or other persons or their properties, or first to enforce, realize upon
or exhaust any collateral security for Indebtedness, before enforcing this
guaranty.

         12. The liability of the Undersigned under this guaranty Is In addition
to and shall be cumulative with all other liabilities of the Undersigned to the
Lender as guarantor or otherwise, without any limitation as to amount, unless
the instrument or agreement evidencing or creating such other liability
specifically provides to the contrary.

         13. The Undersigned represents and warrants to the Lender that (i) the
Undersigned Is a corporation duly organized and existing In good standing and
has full power and authority to make and deliver this guaranty; (ii) the
execution, delivery and performance of this guaranty by the Undersigned have
been duly authorized by all necessary action of Its directors and shareholders
and do not and will not violate the provisions of, or constitute a default
under, any presently applicable law or its articles of Incorporation or by-laws
or any agreement presently binding on It; (iii) this guaranty has been duly
executed and delivered by the authorized officers of the Undersigned and
constitutes its lawful, binding and legally enforceable obligation (subject to
the United States Bankruptcy Code and other similar laws generally affecting the
enforcement of creditors' rights); and (iv) the authorization, execution,
delivery and performance of this guaranty do not require notification to,
registration with, or consent or approval by, any federal, state or local
regulatory body or administrative agency.

         14. This guaranty shall be effective upon delivery to the Lender,
without further act, condition or acceptance by the Lender, shall be binding
upon the Undersigned and the successors and assigns of the Undersigned and shall
inure to the benefit of the Lender and its participants, successors and assigns.
Any invalidity or unenforceability of any provision or application of this
guaranty shall not affect other lawful provisions and application hereof, and to
this and the provisions of this guaranty are declared to be severable. Except as
allowed by the terms herein, this guaranty may not be waived, modified, amended,
terminated, released or otherwise changed except by a writing signed by the
Undersigned and the Lender. This guaranty shall be governed by the laws of the
State in which it is executed. The Undersigned waives notice of the Lender's
acceptance hereof.

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