Document:

May 24, 2005

 

Mr. Michael Phalen

Chief Financial Officer

Krispy Kreme Doughnuts, Inc.

370 Knollwood Street, Suite 500

Winston-Salem, NC  27103

 

	
            Re:
 	
            Services Agreement dated January 18, 2005, Amendment to Services Agreement dated
 

March 31, 2005, and Letter Agreements dated March 10, 2005 and April 20, 2005, 

 

Dear Mr. Phalen:

 

We regret that we must request a further extension to the deadline to negotiate a “Success Fee” (as that term is defined in the Services Agreement) through and including June 30, 2005.  

 

Unfortunately, because we were immersed in the financing and operational restructuring efforts, we were unable to negotiate the Success Fee within the earlier timeframe.  We appreciate your indulgence and apologize for any inconvenience.

 

Please sign and return a copy of this letter to confirm your agreement to this further extension.

 

	
            Very truly yours,
 
 
 /s/   Elizabeth S. Kardos
        General Counsel
        for Kroll Zolfo Cooper LLC
 

 

Agreed:

 

By: /s/ James H. Morgan

 

__________________________

Krispy Kreme Doughnuts, Inc.

 

By: /s/ Stephen F.  Cooper

 

____________________________

Stephen F. Cooper

 

By: /s/ Steven G. Panagos

____________________________

Steven G. PanagosExhibit 10.4

                                 AMENDMENT NO. 3
                                       TO
                  THE RECTORSEAL CORPORATION AND JET-LUBE, INC.
                          EMPLOYEE STOCK OWNERSHIP PLAN
                (As Revised and Restated Effective April 1, 1998)

         THIS AMENDMENT NO. 3, executed this ____ day of ________________, 2004,
and effective as of August 1, 2004, by The  RectorSeal  Corporation,  a Delaware
corporation, having its principal office in Houston, Texas (hereinafter referred
to as the "Company").

                                   WITNESSETH:

         WHEREAS,  the Company  revised and restated The RectorSeal  Corporation
and Jet-Lube, Inc. Employee Stock Ownership Plan (the "Plan") effective April 1,
1998,  except  for  certain  provisions  for which  another  effective  date was
subsequently provided elsewhere in the terms of the Plan, to (i) incorporate the
prior  amendment  to the Plan and (ii) bring the Plan into  compliance  with the
Internal Revenue Code of 1986, as amended (the "Code"), as modified by the Small
Business Job Protection Act of 1996, the General  Agreement on Tariffs and Trade
under the Uruguay Round  Agreements Act, the Uniformed  Services  Employment and
Reemployment  Rights Act of 1994, the Taxpayer  Relief Act of 1997, the Internal
Revenue Service  Restructuring and Reform Act of 1998, and the Community Renewal
Tax  Relief  Act of  2000,  as well as all  applicable  rules,  regulations  and
administrative  pronouncements enacted, promulgated or issued since the date the
Plan was last restated;

         WHEREAS,  the  Company  adopted  Amendment  No.  1 to the  revised  and
restated Plan,  effective as of April 1, 2002,  except as specifically  provided
otherwise in Amendment No. 1, to (i) reflect certain  provisions of the Economic
Growth and Tax Relief  Reconciliation  Act of 2001  ("EGTRRA")  which  generally
became applicable to the Plan effective as of April 1, 2002, and (ii) constitute
good faith compliance with the requirements of EGTRRA;

         WHEREAS,  final Treasury  regulations  were issued April 17, 2002 under
section  401(a)(9) of the Code relating to  distributions  under Section 11.4 of
the Plan (the "Final Distribution Regulations");

         WHEREAS,  the  Pension  and  Welfare  Benefits  Administration  of  the
Department  of Labor issued final  regulations  establishing  new  standards for
processing  benefit claims of participants and beneficiaries  under Section 11.6
of the Plan which have been  clarified by further  guidance from the Pension and
Welfare  Benefits  Administration  (collectively  the  "Final  Claims  Procedure
Regulations");

         WHEREAS,  the  Company  adopted  Amendment  No.  2 to the  revised  and
restated Plan to (i) revise Section 11.4 of the Plan, effective January 1, 2003,
to  reflect  the  Final  Distribution  Regulations  consistent  with  the  Model
Amendment  provided by the Internal Revenue Service in Rev. Proc.  2002-29,  and
(ii) revise Section 11.6 of the Plan,  effective  April 1, 2002, to provide that

<PAGE>

the  administrator  of the Plan shall process benefit claims of participants and
beneficiaries  pursuant to the claims  procedure  specified  in the summary plan
description  for the Plan which  shall  comply with the Final  Claims  Procedure
Regulations, as may be amended from time to time; and

         WHEREAS,  the Company now desires to adopt this  Amendment No. 3 to the
revised  and  restated  Plan,  effective  as of August 1, 2004,  to exclude  the
Director  of  Business   Development   of  Cargo   Chemical   Corporation   from
participation in the Plan;

         NOW,  THEREFORE,  in  consideration  of the premises and the  covenants
herein contained, the Company hereby adopts the following Amendment No. 3 to the
Plan:

         The last sentence of Section 2.2 of the Plan is hereby  amended to read
as follows:

Notwithstanding the foregoing  provisions of this Section 2.2, William R. Thomas
and the  Director of Business  Development  of Cargo  Chemical  Corporation  are
excluded from participating in the Plan.

         IN  WITNESS  WHEREOF,  the  Company,  acting  by and  through  its duly
authorized  officers,  has caused this  Amendment No. 3 to be executed as of the
day and year first above written.

                                                      THE RECTORSEAL CORPORATION

                                                      By:_______________________
                                                                         COMPANY

                                      -2-EXHIBIT 10.11

                               AMENDMENT SEVEN TO
                               ------------------

                        RETIREMENT PLAN FOR EMPLOYEES OF
                        --------------------------------

                CAPITAL SOUTHWEST CORPORATION AND ITS AFFILIATES
                ------------------------------------------------

                 As Amended and Restated Effective April 1, 1989
                 -----------------------------------------------

         WHEREAS,  effective  as of  April  1,  1989,  the  Retirement  Plan for
Employees of Capital  Southwest  Corporation and Its Affiliates (the "Plan") was
amended and restated in its entirety;

         WHEREAS,  by the terms of Section 6.4 of the amended and restated Plan,
said Plan may be amended  by  Capital  Southwest  Corporation  (the  "Sponsoring
Employer");

         WHEREAS,  the Sponsoring Employer has determined that the Plan shall be
amended to exclude  the  Director  of  Business  Development  of Cargo  Chemical
Corporation from participation in the Plan; and

         WHEREAS, the Board of Directors of the Sponsoring Employer has approved
and adopted this Amendment Seven to the Plan;

         NOW,  THEREFORE,  Section  1.1(A)(13)  of the Plan is  hereby  amended,
effective  as of August 1,  2004,  to delete  the word "or" at the end of clause
(c),  to replace  the period at the end of clause (d) with a  semicolon  and the
word  "or",  and to add a new clause (e) which  shall  read in its  entirety  as
follows:

         "(e) the Director of Business Development of Cargo Chemical
Corporation."

         IN WITNESS  WHEREOF,  CAPITAL  SOUTHWEST  CORPORATION  has caused  this
instrument  to be  executed by its duly  authorized  officer on this ____ day of
________________, 2004.

                                                   CAPITAL SOUTHWEST CORPORATION

                                                   By __________________________

                                                   Title: ______________________EXHIBIT 10.12

                               AMENDMENT EIGHT TO
                               ------------------

                        RETIREMENT PLAN FOR EMPLOYEES OF
                        --------------------------------

                CAPITAL SOUTHWEST CORPORATION AND ITS AFFILIATES
                ------------------------------------------------

                 As Amended and Restated Effective April 1, 1989
                 -----------------------------------------------

         WHEREAS, effective as of April 1, 1989, the Retirement Plan for
Employees of Capital Southwest Corporation and Its Affiliates (the "Plan") was
amended and restated in its entirety;

         WHEREAS,  by the  terms of  Section  6.4 of the  Plan,  the Plan may be
amended; and

         WHEREAS,  it is  desirable  that the Plan be  amended  to  provide  for
retroactive annuity starting dates under certain  circumstances and to provide a
temporary  interest  rate for  purposes of applying  benefit  limitations  under
section 415 of the Internal Revenue Code;

         NOW,  THEREFORE,  the Plan is hereby amended,  effective as of April 1,
2004, as follows:

         1.  Section  4.1(A)(2)  of the  Plan is  amended  to add the  following
paragraph at the end thereof:

         "Notwithstanding  the foregoing  provisions of this Section  4.1(A)(2),
for Plan Years  beginning  in 2004 and 2005 the  interest  rate of 5.5% shall be
substituted for the annual rate of interest on 30-year  Treasury  securities for
purposes of this Section  4.1(A),  except that in the case of any Participant or
Beneficiary  receiving a distribution after December 31, 2003 and before January
1,  2005,  the  amount  payable  under any form of  benefit  subject  to Section
417(e)(3) of the Internal  Revenue Code and subject to adjustment  under Section
415(b)(2)(B)  of the Internal  Revenue  Code shall not,  solely by reason of the
interest rate  substitution  described above, be less than the amount that would
have been so payable had the amount  payable  been  determined  using the annual
rate of interest on 30-year Treasury securities  described above in this Section
4.1(A)(2)  in effect as of the last day of the last Plan Year  beginning  before
January 1, 2004."

<PAGE>
                                      -2-

         2.  Section  4.1(C) of the Plan is amended to read in its  entirety  as
follows:

         "(C) Requirement  With Respect to Form of Payment:  The Committee shall
provide each Participant, during the period beginning 90 days before his Annuity
Starting  Date and ending 30 days before his Annuity  Starting  Date (or as soon
after the  expiration  of such  period as is  administratively  practicable),  a
written notification of his optional forms of payment. Such written notification
shall set forth an explanation of:

                  (1)      if the Participant is married:

                           (a)      the terms and  conditions  of the  Qualified
                                    Joint  and  50%  Survivor  Annuity  form  of
                                    payment;

                           (b)      the  Participant's  right to elect,  and the
                                    effect of electing,  to waive the  Qualified
                                    Joint  and  50%  Survivor  Annuity  form  of
                                    payment;

                           (c)      the rights of the Participant's spouse; and

                           (d)      the  right  to  revoke,  and the  effect  of
                                    revoking, an election to waive the Qualified
                                    Joint  and  50%  Survivor  Annuity  form  of
                                    payment;

                  (2)      the eligibility  conditions and material  features of
                           the  optional  forms of payment  available  under the
                           Plan;

                  (3)      the  financial  effect of electing each optional form
                           of payment;

                  (4)      in the event  the  notification  described  herein is
                           required and is provided to the Participant after his
                           Annuity  Starting  Date, the  Participant's  right to
                           elect a retroactive Annuity Starting Date; and

                  (5)      such  other  information  as  may be  required  under
                           applicable regulations.

The written notification described above shall not be required if the single-sum
value of the Participant's retirement income is less than or equal to $5,000.

         In the event the written  notification  described above is required and
is provided to the Participant  after the  Participant's  Annuity Starting Date,
the  Participant's  Annuity Starting Date shall be deemed to be his 'retroactive
Annuity Starting Date,' and the provisions of Section 4.1(J) shall apply.

         Any  provisions of Section 2.1,  2.2, 2.3,  2.4(A) or 3.1 hereof to the
contrary notwithstanding, if a Participant does not elect, in writing filed with
the  Committee  during the  election  period  described  below,  to receive  the
retirement  income payable on his behalf on and after his Annuity  Starting Date
either  (i) under the form of  payment  that is  specified  in  Section  2.1(C),
2.2(C), 2.3(F) or 2.4(A)(2),  whichever is applicable, or (ii) under an optional

<PAGE>
                                      -3-

form of payment  described  in and  subject  to the  provisions  of Section  3.1
hereof,  such  Participant  shall be deemed to have elected,  and the retirement
income  payable on and after his Annuity  Starting Date shall  automatically  be
paid in accordance with the provisions of, either:

                           (1) if he  does  not  have a  spouse  at his  Annuity
                  Starting  Date,  the  form of  payment  that is  specified  in
                  Section  2.1(C),  2.2(C),  2.3(F) or  2.4(A)(2),  whichever is
                  applicable; or

                           (2) if he has a spouse at his Annuity  Starting Date,
                  the Qualified Joint and 50% Survivor Annuity Option.

Any  Participant  may make an election  under this  section at any time (and any
number of times) prior to the  commencement  of his  retirement  income or other
benefit  payments  and during the period  beginning on the date which is 90 days
prior to his Annuity  Starting Date and ending on the latest to occur of (i) his
Annuity Starting Date, (ii) the date which is 90 days after the date on which he
was provided with the general written  explanation  described above or (iii) the
date which is 90 days after the date on which he was provided  with any specific
detailed  information  concerning the payment of his  retirement  income that is
required  to be  furnished  due to the request of the  Participant.  If any such
Participant  does  not  file  his  election  with  the  Committee  prior  to the
expiration of the election  period  described  above,  the  commencement  of his
retirement income will be delayed until the end of such election period,  but he
will be entitled  to a  retroactive  payment  with  respect to those  retirement
income  payments which were delayed.  If any  Participant  has elected a form of
payment other than the automatic form provided  above and his retirement  income
or other benefit payments have not commenced,  he may  subsequently  revoke such
election,  in  writing  filed with the  Committee  within  the  election  period
described above, in order to receive his retirement income payable in accordance
with the automatic form provided above.  Any provisions of Section 3.1 hereof to
the  contrary  notwithstanding,  if any  Participant  is not  provided  with the
written notification described in the first sentence of this section at least 30
days  before  his  Annuity   Starting  Date  but  is  provided  in  the  written
notification  a period of at least 30 days in which to make his  election  under
this  section,  he may waive such notice  period  (with any  applicable  spousal
consent) and file his election with the Committee,  and his retirement income or
other  benefit  may  commence  within  30 days  after  the  date on which he was
provided with such written  notification,  but more than 7 days after such date.
Any provisions  herein to the contrary  notwithstanding,  the written consent of
the Participant's spouse during the applicable election period shall be required
in order for the  Participant to receive his  retirement  income in a form other
than that provided under a Qualified Joint and Survivor Annuity."

         3.  Section  4.1 of the Plan is amended to add at the end thereof a new
Subsection (J), which shall read as follows:

         "(J)  Provisions   Concerning   Retroactive   Annuity  Starting  Dates:
Notwithstanding  any  provision  hereof to the  contrary,  in the event that the
written notification  described in Section 4.1(C) is required and is provided to

<PAGE>
                                      -4-

the Participant after the Participant's Annuity Starting Date, the Participant's
Annuity  Starting Date shall be deemed to be his  'retroactive  Annuity Starting
Date' and payment of the Participant's retirement income under Section 2.1, 2.2,
2.3,  2.4(A) or 3.1 hereof shall be made or commence in accordance  with Section
417(a) of the Internal Revenue Code, and regulations and rulings issued pursuant
thereto, and the following provisions of this Section 4.1(J).

                  (1)  Notification  requirement:  In the event of a retroactive
Annuity Starting Date, the written  notification to the Participant  required by
Section 4.1(C) shall set forth the information  described in Section 4.1(C) both
as of his retroactive  Annuity  Starting Date and as of a date which is not more
than 90 days after the date on which such  written  notification  is provided to
the Participant.

                  (2) Election of  retroactive  Annuity  Starting  Date:  In the
event of a retroactive  Annuity  Starting  Date,  the  Participant's  retirement
income  shall be  determined  and payable as of a date which is not more than 90
days after the date on which the written notification required by Section 4.1(C)
is  provided  to the  Participant,  unless the  Participant  elects to have such
retirement income determined and payable as of such retroactive Annuity Starting
Date. The Participant may make such election on the appropriate form provided by
the Committee and filed with the Committee  within the election period described
in Section 4.1(C).

                  (3)  Spousal  consent  requirement:  In the  event  that (a) a
Participant elects to receive his retirement income under Section 2.1, 2.2, 2.3,
2.4(A), or 3.1 hereof determined as of a retroactive  Annuity Starting Date, and
(b) under the form of payment elected by such  Participant,  the benefit payable
to the Participant's  spouse upon the Participant's death would be less than the
benefit payable to such surviving  spouse after the  Participant's  death if the
Participant  had elected to receive a Qualified  Joint and 50% Survivor  Annuity
determined  and payable as of the date on which his retirement  income  payments
actually commence,  then the Participant's spouse must consent in writing to the
Participant's  election of such retroactive  Annuity Starting Date. Such spousal
consent  requirement shall be satisfied if the Participant's  spouse consents in
the manner provided in Section 4.1(C) to the  Participant's  election to receive
his retirement income in a form other than that provided under a Qualified Joint
and Survivor Annuity.

                  (4)  Make-up  payments  with  interest:  In the  event  that a
Participant  elects  (with  spousal  consent,  if  applicable)  to  receive  his
retirement  income under Section 2.1, 2.2, 2.3, 2.4(A), or 3.1 hereof determined
as of a retroactive  Annuity  Starting  Date,  the  Participant  shall receive a
make-up  payment to reflect any missed  payment or payments  for the period from
the retroactive Annuity Starting Date to the date of the actual make-up payment,
with an appropriate  adjustment for interest from the date the missed payment or
payments  would  have been made  (including,  if  applicable,  a payment  of the
single-sum  value of the  Participant's  retirement  income)  to the date of the
actual make-up payment.

<PAGE>
                                      -5-

                  (5) Future payment  amount:  If the  Participant  elects (with
spousal consent,  if applicable) to receive his retirement  income determined as
of a  retroactive  Annuity  Starting  Date  and  the  Participant  receives  his
retirement  income in a form other than a  single-sum  payment,  the  retirement
income payments that commence after he has received the notification required by
Section 4.1(C),  other than any required make-up payment,  shall be in an amount
that is equal to the amount  that would  have been paid to the  Participant  had
payments actually commenced on his retroactive Annuity Starting Date.

                  (6) Section 415  compliance:  Except in the case where payment
of the  Participant's  retirement  income  (other than a form of payment that is
subject to Section  417(e) of the  Internal  Revenue  Code,  including  lump-sum
distributions  and other forms of distribution that provide payments in the form
of a  decreasing  annuity or for a period  less than the life of the  recipient)
commences no more than 12 months after the  retroactive  Annuity  Starting Date,
payment  of  the  Participant's   retirement  income,   including  any  interest
adjustments,  shall  satisfy the  requirements  of Section  415 of the  Internal
Revenue  Code if the  date  retirement  income  payments  actually  commence  is
substituted  for  the  retroactive  Annuity  Starting  Date  for  all  purposes,
including  for purposes of  determining  the  applicable  interest  rate and the
applicable mortality table described in Section 4.1(A)(2) hereof.

                  (7)  Section  417(e)  compliance:  If  the  retirement  income
received by the Participant is in a form of payment that would have been subject
to Section  417(e) of the Internal  Revenue Code if payment had  commenced as of
the  retroactive  Annuity  Starting  Date,  then the amount of payment as of the
actual commencement date shall be no less than the amount of payment produced by
applying  the  applicable  interest  rate  and the  applicable  mortality  table
(described  in Section  4.1(A)(2)  hereof),  determined  as of the date  payment
actually commences, to the annuity form that was used to determine the amount of
retirement income as of the Participant's retroactive Annuity Starting Date."

         IN WITNESS  WHEREOF,  CAPITAL  SOUTHWEST  CORPORATION  has caused  this
instrument  to be  executed by its duly  authorized  officer on this ____ day of
______________, 2004.

                                                   CAPITAL SOUTHWEST CORPORATION

                                                   By __________________________

                                                   Title: ______________________

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