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                                                                   EXHIBIT 10.23

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                        KRISPY KREME DOUGHNUT CORPORATION

                             1998 STOCK OPTION PLAN

                         EFFECTIVE AS OF AUGUST 6, 1998

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                                TABLE OF CONTENTS

ARTICLE 1 - GENERAL PROVISIONS.................................................1
         1.1      Purpose......................................................1
         1.2      Types of Awards..............................................1
         1.3      Effective Date...............................................1

ARTICLE 2 - DEFINITIONS........................................................1
         2.1      Act..........................................................1
         2.2      Agreement....................................................1
         2.3      Board........................................................1
         2.4      Code.........................................................2
         2.5      Committee....................................................2
         2.6      Corporation..................................................2
         2.7      Disability...................................................2
         2.8      Effective Date...............................................2
         2.9      Eligible Participant.........................................2
         2.10     Fair Market Value............................................2
         2.11     Incentive Stock Option.......................................2
         2.12     Non-Employee Director........................................2
         2.13     Nonqualified Stock Option....................................2
         2.14     Option Grant Date............................................2
         2.15     Parent Corporation...........................................3
         2.16     Participant..................................................3
         2.17     Plan.........................................................3
         2.18     Retirement...................................................3
         2.19     Stock........................................................3
         2.20     Stock Option.................................................3
         2.21     Subsidiary Corporation.......................................3
         2.22     Termination of Employment....................................3

ARTICLE 3 - ADMINISTRATION.....................................................4
         3.1      Committee....................................................4
         3.2      Action by Committee..........................................4
         3.3      Authority of Committee.......................................4
         3.4      Decisions Binding............................................5
         3.5      Written Agreement............................................5
         3.6      Securities Law Restrictions..................................5
         3.7      Rights as Shareholder........................................6
         3.8      Change in Capital Structure..................................6
         3.9      Indemnification of Committee.................................7
         3.10     Adjustment to Stock Option Terms.............................7
         3.11     Cancellation of Stock Options................................7

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ARTICLE 4 - SHARES SUBJECT TO THE PLAN.........................................8
         4.1      Number of Shares.............................................8
         4.2      Lapsed Awards................................................8
         4.3      Stock Distributed............................................8

ARTICLE 5 - INCENTIVE STOCK OPTIONS............................................8
         5.1      Compliance With Code.........................................8
         5.2      Available Shares.............................................8
         5.3      Incentive Stock Option Terms.................................8
         5.4      Repurchase of Incentive Stock Options........................9
         5.5      Individual Dollar Limitation.................................9

ARTICLE 6 - NONQUALIFIED STOCK OPTIONS.........................................9
         6.1      Grants.......................................................9
         6.2      Available Shares.............................................9
         6.3      Exercise Price..............................................10
         6.4      Nonqualified Stock Option Terms.............................10

ARTICLE 7 - INCIDENTS OF STOCK OPTIONS........................................10
         7.1      Terms and Conditions........................................10
         7.2      Restrictions on Transfer....................................10
         7.3      Form of Payment.............................................11
         7.4      Stock Purchase Agreement....................................11
         7.5      Dividends...................................................12
         7.6      Death or Disability.........................................12
         7.7      Retirement..................................................12
         7.8      Replacement Stock Option Grants.............................12

ARTICLE 8 - AMENDMENT AND TERMINATION.........................................12
         8.1      Amendment or Termination of Plan............................12
         8.2      Effect of Amendment or Termination of Plan..................13

ARTICLE 9 - MISCELLANEOUS PROVISIONS..........................................13
         9.1      No Right to Employment......................................13
         9.2      Tax Withholding.............................................14
         9.3      Subject to Federal and State Laws...........................14
         9.4      Successors and Assigns......................................15
         9.5      Governing Law...............................................15
         9.6      Unfunded Status of Plan.....................................15
         9.7      Notice of Section 83(b) Election............................15
         9.8      Severability of Plan........................................15
         9.9      Additional Provisions.......................................15
         9.10     Resolution of Controversy...................................15

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                        KRISPY KREME DOUGHNUT CORPORATION
                             1998 STOCK OPTION PLAN

                         ARTICLE 1 - GENERAL PROVISIONS

1.1      PURPOSE. The Plan is designed, for the benefit of the Corporation, to
         attract and retain for the Corporation employees and directors of
         exceptional ability; to motivate such individuals through added
         incentives to make a maximum contribution to greater profitability; to
         develop and maintain a highly competent management team; and to be
         competitive with other companies with respect to equity compensation.

1.2      TYPES OF AWARDS. Awards under the Plan may be made to Participants in
         the form of (i) Incentive Stock Options; and/or (ii) Nonqualified Stock
         Options.

1.3      EFFECTIVE DATE. The Plan shall be effective as of August 6, 1998.

         (a)      Notwithstanding any other provision of this Plan, any Stock
                  Option granted to a Participant prior to the date on which the
                  shareholders of the Corporation approve the Plan (which
                  approval must be obtained within the 12-month period before
                  the Effective Date or the 12-month period after the Effective
                  Date in order for Incentive Stock Options to be granted under
                  the Plan) shall be conditioned upon and subject to such
                  shareholder approval to the extent required by Section 16(b)
                  of the Act or Section 422 of the Code.

         (b)      If an Incentive Stock Option is granted prior to the date on
                  which such shareholder approval is obtained, and such approval
                  is obtained after the end of the 12-month period beginning on
                  the Effective Date, such Incentive Stock Option shall be
                  deemed a Nonqualified Stock Option granted pursuant to Article
                  5.

                             ARTICLE 2 - DEFINITIONS

Except where the context otherwise indicates, the following definitions apply:

2.1      "Act" means the Securities Exchange Act of 1934, as now in effect or as
         hereafter amended. All citations to sections of the Act or rules
         thereunder are to such sections or rules as they may from time to time
         be amended or renumbered.

2.2      "Agreement" means the written agreement evidencing a Stock Option
         granted to a Participant under the Plan.

2.3      "Board" means the Board of Directors of Krispy Kreme Doughnut
         Corporation.

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2.4      "Code" means the Internal Revenue Code of 1986, as now in effect or as
         hereafter amended. All citations to sections of the Code are to such
         sections as they may from time to time be amended or renumbered.

2.5      "Committee" means the committee consisting of two or more members
         appointed by the Board to administer this Plan pursuant to Article 3 or
         for such limited purposes as may be provided by the Board. To the
         extent required by Rule 16b-3 under the Act, the Committee shall
         consist of individuals who are Non-Employee Directors. The Board shall
         function as the Committee at any time the Committee is not otherwise
         constituted.

2.6      "Corporation" means Krispy Kreme Doughnut Corporation, a North Carolina
         corporation, and its successors and assigns. The term "Corporation"
         shall include any Parent Corporation and any Subsidiary Corporation.
         With respect to all purposes of the Plan, including, but not limited
         to, the establishment, amendment, termination, operation and
         administration of the Plan, Krispy Kreme Doughnut Corporation shall be
         authorized to act on behalf of all other entities included within the
         definition of Corporation.

2.7      "Disability" means a condition resulting in the Participant commencing
         full disability benefits under the Employer's program of long-term
         disability insurance.

2.8      "Effective Date" shall mean August 6, 1998.

2.9      "Eligible Participant" means any employee of the Corporation, as shall
         be determined by the Committee, as well as any other person, including
         directors and consultants whose participation in the Plan the Committee
         determines is in the best interest of the Corporation, subject to
         limitations as may be provided by the Code, the Act or the Committee.

2.10     "Fair Market Value" shall be the value of a share of stock, as
         determined by the Committee in its sole discretion from time to time.
         The determination of Fair Market Value in connection with an Incentive
         Stock Option shall be made by the Committee in accordance with Section
         422 of the Code and the rules and regulations thereunder.

2.11     "Incentive Stock Option" means a Stock Option granted under Article 4
         of the Plan, and as defined in Section 422 of the Code.

2.12     "Non-Employee Director" shall have the meaning set forth in Rule 16b-3
         under the Act.

2.13     "Nonqualified Stock Option" means a Stock Option granted under Article
         5 of the Plan.

2.14     "Option Grant Date" means, as to any Stock Option, the latest of:

         (a)      the date on which the Committee grants the Stock Option by
                  authorizing the officers of the Corporation to enter into an
                  Agreement with the Participant for a specified number of
                  options at a specified exercise price;

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         (b)      the date the Participant receiving the Stock Option becomes an
                  employee of the Corporation, to the extent employment status
                  is a condition of the grant or a requirement of the Code or
                  the Act; or

         (c)      such other date (later than the dates described in (i) and
                  (ii) above) as the Committee may designate.

2.15     "Parent Corporation" means any corporation (other than Krispy Kreme
         Doughnut Corporation) in an unbroken chain of corporations ending with
         Krispy Kreme Doughnut Corporation if, at the time of the granting of
         the option, each of the corporations other than Krispy Kreme Doughnut
         Corporation owns stock possessing 50 percent (50%) or more of the total
         combined voting power of all classes of stock in one of the other
         corporations in such chain.

2.16     "Participant" means an Eligible Participant to whom a Stock Option has
         been granted and who has entered into an Agreement evidencing the Stock
         Option.

2.17     "Plan" means the Krispy Kreme Doughnut Corporation 1998 Stock Option
         Plan, as amended from time to time.

2.18     "Retirement" shall mean the Participant's Termination of Employment at
         a time when (i) for an employee, the sum of the Participant's age and
         years of employment with the Corporation equals or exceeds 65, and (ii)
         for a Participant who is a Non-Employee Director, the Non-Employee
         Director is deemed to be in good standing, as determined by the
         Committee in its sole discretion.

2.19     "Stock" means shares of common stock of Krispy Kreme Doughnut
         Corporation, as may be adjusted pursuant to the provisions of Section
         3.9.

2.20     "Stock Option" means an Incentive Stock Option granted under Article 4
         or a Nonqualified Stock Option granted under Article 5 herein.

2.21     "Subsidiary Corporation" means any corporation (other than Krispy Kreme
         Doughnut Corporation) in an unbroken chain of corporations beginning
         with the employer corporation if, at the time of the granting of the
         option, each of the corporations other than the last corporation in the
         unbroken chain owns stock possessing 50 percent (50%) or more of the
         total combined voting power of all classes of stock in one of the other
         corporations in such chain.

2.22     "Termination of Employment" with respect to an employee means the
         discontinuance of employment of a Participant with the Corporation for
         any reason. The determination of whether a Participant has discontinued
         employment shall be made by the Committee in its discretion.
         "Termination of Employment" with respect to a Non-Employee Director
         means the discontinuance of the Non-Employee Director's service as a
         member of the Board. In

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         determining whether a Termination of Employment has occurred, the
         Committee may provide that service as a consultant or service with a
         business enterprise in which the Corporation has a significant
         ownership interest or which is a franchisee of the Corporation shall be
         treated as employment with the Corporation. The Committee shall have
         the discretion, exercisable either at the time the Stock Option is
         granted or at the time the Participant terminates employment, to
         establish as a provision applicable to the exercise of one or more
         Stock Options that during the limited period of exercisability
         following Termination of Employment, the Stock Option may be exercised
         not only with respect to the number of shares of Stock for which it is
         exercisable at the time of the Termination of Employment but also with
         respect to one or more subsequent installments for which the Stock
         Option would have become exercisable had the Termination of Employment
         not occurred.

                           ARTICLE 3 - ADMINISTRATION

3.1      COMMITTEE. This Plan shall be administered by the Committee. At any
         time that the officers and directors of the Corporation are subject to
         Section 16 of the Act, a Committee member who is not a Non-Employee
         Director shall not be able to participate in any decision made by the
         Committee to the extent proscribed by Rule 16b-3 under the Act. The
         Committee, in its discretion, may delegate to one or more of its
         members such of its powers as it deems appropriate. The Committee also
         may limit the power of any member to the extent necessary to comply
         with Rule 16b-3 under the Act or any other law. Members of the
         Committee shall be appointed originally, and as vacancies occur, by the
         Board, to serve at the pleasure of the Board. The Board may serve as
         the Committee if by the terms of the Plan all Board members are
         otherwise eligible to serve on the Committee.

3.2      ACTION BY COMMITTEE. The Committee shall meet at such times and places
         as it determines. A majority of its members shall constitute a quorum,
         and the decision of a majority of those present at any meeting at which
         a quorum is present shall constitute the decision of the Committee. A
         memorandum signed by all of its members shall constitute the decision
         of the Committee without necessity, in such event, for holding an
         actual meeting.

3.3      AUTHORITY OF COMMITTEE. The Committee has the exclusive power,
         authority and discretion to:

         (a)      designate Participants;

         (b)      determine the type or types of Stock Options to be granted to
                  each Participant;

         (c)      determine the number of Stock Options to be granted and the
                  number of shares of Stock to which a Stock Option will relate;

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         (d)      determine the terms and conditions of any Stock Option granted
                  under the Plan, including, but not limited to, the exercise
                  price, grant price, or purchase price, any restrictions or
                  limitations on the Stock Option, any schedule for lapse of
                  forfeiture restrictions or restrictions on the exercisability
                  of a Stock, and accelerations or waivers thereof, based in
                  each case on such considerations as the Committee in its sole
                  discretion determines;

         (e)      accelerate the vesting or lapse of restrictions of any
                  outstanding Stock Option, based in each case on such
                  considerations as the Committee in its sole discretion
                  determines;

         (f)      determine whether, to what extent, and under what
                  circumstances a Stock Option may be settled in, or the
                  exercise price of a Stock Option may be paid in, cash, Stock,
                  other Stock Options, or other property, or a Stock Option may
                  be cancelled, forfeited, or surrendered;

         (g)      prescribe the form of each Stock Option Agreement, which need
                  not be identical for each Participant;

         (h)      decide all other matters that must be determined in connection
                  with a Stock Option;

         (i)      establish, adopt or revise any rules and regulations as it may
                  deem necessary or advisable to administer the Plan;

         (j)      make all other decisions and determinations that may be
                  required under the Plan or as the Committee deems necessary or
                  advisable to administer the Plan; and

         (k)      amend the Plan or any Stock Option Agreement as provided in
                  Article 8.

3.4      DECISIONS BINDING. The Committee's interpretation of the Plan, any
         Stock Options granted under the Plan, any Stock Option Agreement and
         all decisions and determinations by the Committee with respect to the
         Plan are final, binding, and conclusive on all parties.

3.5      WRITTEN AGREEMENT. Each Stock Option granted under the Plan shall be
         evidenced by a written Agreement. Each Agreement shall be subject to
         and incorporate, by reference or otherwise, the applicable terms and
         conditions of the Plan, and any other terms and conditions, not
         inconsistent with the Plan, required by the Committee.

3.6      SECURITIES LAW RESTRICTIONS. All certificates for shares of Stock
         delivered under the Plan shall also be subject to such stop-transfer
         orders and other restrictions as the Committee may deem advisable under
         the rules, regulations, and other requirements of the Securities and
         Exchange Commission, any stock exchange or national quotation system
         upon which the Stock is then listed and any applicable federal or state
         laws, and the Committee may cause a legend or legends to be placed on
         any such certificates to make appropriate

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         reference to such restrictions. In making such determination, the
         Committee may rely upon an opinion of counsel for the Corporation.

         The Committee may require each person purchasing shares of Stock
         pursuant to a Stock Option granted under the Plan to represent to and
         agree with the Corporation in writing that he is acquiring the shares
         of Stock without a view to distribution thereof. The certificates for
         such shares of Stock may include any legend which the Committee deems
         appropriate to reflect any restrictions on transfer.

3.7      RIGHTS AS SHAREHOLDER. Except as provided otherwise in the Plan or in
         an Agreement, no Participant awarded a Stock Option shall have any
         right as a shareholder with respect to any shares of Stock covered by
         his or her Stock Option prior to the date of issuance to him or her of
         a certificate or certificates for such shares of Stock.

3.8      CHANGE IN CAPITAL STRUCTURE. If any reorganization, recapitalization,
         reclassification, stock split-up, stock dividend, or consolidation of
         shares of Stock, merger or consolidation of the Corporation or sale or
         other disposition by the Corporation of all or a portion of its assets,
         any other change in the Corporation's corporate structure, or any
         distribution to shareholders other than a cash dividend results in the
         outstanding shares of Stock, or any securities exchanged therefor or
         received in their place, being exchanged for a different number or
         class of shares of Stock or other securities of the Corporation, or for
         shares of Stock or other securities of any other corporation; or new,
         different or additional shares or other securities of the Corporation
         or of any other corporation being received by the holders of
         outstanding shares of Stock, then equitable adjustments shall be made
         by the Committee in:

         (a)      the limitation of the aggregate number of shares of Stock that
                  may be awarded as set forth in Section 3.5 of the Plan;

         (b)      the number and class of Stock that may be subject to a Stock
                  Option, and which have not been issued or transferred under an
                  outstanding Stock Option;

         (c)      the purchase price to be paid per share of Stock under
                  outstanding Stock Options; and

         (d)      the terms, conditions or restrictions of any Stock Option and
                  Agreement, including the price payable for the acquisition of
                  Stock;

         provided, however, that all adjustments made as the result of the
         foregoing in respect of each Incentive Stock Option shall be made so
         that such Stock Option shall continue to be an Incentive Stock Option,
         as defined in Section 422 of the Code, unless the Committee has stated
         its intent in writing to treat such Stock Option instead as a
         Nonqualified Stock Option.

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3.9      INDEMNIFICATION OF COMMITTEE. In addition to such other rights of
         indemnification as they may have as directors or as members of the
         Committee, the members of the Committee shall be indemnified by the
         Corporation against reasonable expenses, including attorney's fees,
         actually and necessarily incurred in connection with the defense of any
         action, suit or proceeding, or in connection with any appeal therein,
         to which they or any of them may be a party by reason of any action
         taken or failure to act under or in connection with the Plan or any
         Stock Option granted hereunder, and against all amounts paid by them in
         settlement thereof, provided such settlement is approved by independent
         legal counsel selected by the Corporation, or paid by them in
         satisfaction of a judgment or settlement in any such action, suit or
         proceeding, except as to matters as to which the Committee member has
         been negligent or engaged in misconduct in the performance of his
         duties; provided, that within 60 days after institution of any such
         action, suit or proceeding, a Committee member shall in writing offer
         the Corporation the opportunity, at its own expense, to handle and
         defend the same.

3.10     ADJUSTMENT TO STOCK OPTION TERMS. The Committee shall be authorized to
         make adjustments in performance based criteria or in the other terms
         and conditions of Stock Options in recognition of unusual or
         nonrecurring events affecting the Corporation or its financial
         statements or changes in applicable laws, regulations or accounting
         principles. Unless otherwise required by applicable law, rule or
         regulation, such adjustments will not be considered to result in the
         grant of a new Stock Option. The Committee may correct any defect,
         supply any omission or reconcile any inconsistency in the Plan or any
         Agreement in the manner and to the extent it shall deem desirable to
         carry it into effect. In the event the Corporation shall assume
         outstanding employee benefit awards or the right or obligation to make
         future such awards in connection with the acquisition of another
         corporation or business entity, the Committee may, in its discretion,
         make such adjustments in the terms of Stock Options under the Plan as
         it shall deem appropriate to assume the outstanding awards, rights and
         obligations.

3.11     CANCELLATION OF STOCK OPTIONS. If the Committee determines that
         egregious circumstances exist which have been caused by the
         Participant, the Committee shall have the full power and authority to
         cancel or suspend any Stock Option granted to such Participant. In
         particular, but without limitation, all outstanding Stock Options
         granted to any Participant may be canceled if (a) the Participant,
         without the consent of the Committee, while employed by the Corporation
         or after termination of such employment, becomes associated with,
         employed by, renders services to, or owns any interest in, other than
         any insubstantial interest, as determined by the Committee, any
         business that is in competition with the Corporation or with any
         business in which the Corporation has a substantial interest as
         determined by the Committee; (b) the Participant is terminated for
         cause as determined by the Committee in its discretion; or (c) the
         Corporation voluntarily or involuntarily files for and obtains relief
         under the United States Bankruptcy Code or any similar state law for
         the protection of creditors.

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                     ARTICLE 4 - SHARES SUBJECT TO THE PLAN

4.1      NUMBER OF SHARES. The aggregate number of shares of Stock which are
         available for Stock Options under the Plan shall be Ninety-Five
         Thousand Six Hundred Fifty (95,650) shares, subject to adjustment as
         provided in Section 3.8.

4.2      LAPSED AWARDS. To the extent that a Stock Option is cancelled,
         terminates, expires or lapses for any reason, any shares of Stock
         subject to the Stock Option will again be available for the grant of a
         Stock Option under the Plan.

4.3      STOCK DISTRIBUTED. Any Stock distributed pursuant to a Stock Option may
         consist, in whole or in part, of authorized and unissued Stock,
         treasury Stock or Stock purchased on the open market.

                       ARTICLE 5 - INCENTIVE STOCK OPTIONS

5.1      COMPLIANCE WITH CODE Each provision of this Article 5 and of each
         Incentive Stock Option granted hereunder shall be construed in
         accordance with the provisions of Section 422 of the Code, and any
         provision hereof that cannot be so construed shall be disregarded.

5.2      AVAILABLE SHARES All or any portion of the shares of Stock authorized
         for issuance pursuant to Section 4.1 herein shall be available for
         issuance pursuant to Incentive Stock Options granted hereunder.

5.3      INCENTIVE STOCK OPTION TERMS. Incentive Stock Options shall be granted
         only to Eligible Participants who are in the active employment of the
         Corporation, each of whom may be granted one or more such Incentive
         Stock Options for a reason related to his employment at such time or
         times determined by the Committee following the Effective Date until
         August 5, 2008, subject to the following conditions:

         (a)      The Incentive Stock Option price per share of Stock shall be
                  set in the corresponding Agreement, but shall not be less than
                  100% of the Fair Market Value of the Stock on the Option Grant
                  Date. However, if the Optionee owns more than 10% of the
                  outstanding Stock (as determined pursuant to Section 424(d) of
                  the Code) on the Option Grant Date, the Incentive Stock Option
                  price per share shall not be less than 110% of the Fair Market
                  Value of the Stock on the Option Grant Date.

         (b)      Subject to any conditions upon exercise that the Committee may
                  specify in the corresponding Agreement, the Incentive Stock
                  Option may be exercised in whole or in part within ten years
                  from the Option Grant Date (within five years if the Optionee
                  owns more than 10% of the Stock on the Option Grant Date), or
                  such shorter period as may be specified by the Committee in
                  the Agreement; provided, that, in any event, the Incentive
                  Stock Option shall lapse and cease to be exercisable

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                  upon a Termination of Employment or within such period
                  following a Termination of Employment as shall have been
                  specified in the Agreement, which period shall not exceed 90
                  days unless:

                  (i)      employment shall have terminated as a result of death
                           or Disability, in which event such period shall not
                           exceed one year after the date of death or
                           Disability; or

                  (ii)     death shall have occurred following a Termination of
                           Employment and while the Incentive Stock Option was
                           still exercisable, in which event such period shall
                           not exceed one year after the date of death;

                  provided, further, that such period following a Termination of
                  Employment shall in no event extend the original exercise
                  period of the Incentive Stock Option.

         (c)      The Committee may adopt any other terms and conditions which
                  it determines should be imposed for the Incentive Stock Option
                  to qualify under Section 422 of the Code, as well as any other
                  terms and conditions not inconsistent with this Article 5 as
                  determined by the Committee.

5.4      REPURCHASE OF INCENTIVE STOCK OPTIONS. The Committee may at any time
         offer to buy out for a payment in cash, Stock or other consideration an
         Incentive Stock Option previously granted, based on such terms and
         conditions as the Committee shall establish and communicate to the
         Participant at the time that such offer is made.

5.5      INDIVIDUAL DOLLAR LIMITATION. To the extent the aggregate Fair Market
         Value, determined as of the Option Grant Date, of the shares of Stock
         with respect to which Incentive Stock Options (determined without
         regard to this subsection) are first exercisable during any calendar
         year by any Eligible Participant exceeds $100,000, or any Incentive
         Stock Options fail to qualify under Section 422 of the Code, such
         Incentive Stock Options shall be treated as Nonqualified Stock Options
         granted under Article 5.

                     ARTICLE 6 - NONQUALIFIED STOCK OPTIONS

6.1      GRANTS. One or more Stock Options may be granted as Nonqualified Stock
         Options to Eligible Participants to purchase shares of Stock at such
         time or times determined by the Committee, subject to the terms and
         conditions set forth in this Article 6.

6.2      AVAILABLE SHARES. All or any portion of the shares of Stock authorized
         for issuance pursuant to Section 4.1 herein shall be available for
         issuance pursuant to Nonqualified Stock Options granted hereunder.

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6.3      EXERCISE PRICE. The Nonqualified Stock Option price per share of Stock
         shall be established in the Agreement and may be less than 100% of the
         Fair Market Value at the time of the grant, or at such later date as
         the Committee shall determine.

6.4      NONQUALIFIED STOCK OPTION TERMS. The Nonqualified Stock Option may be
         exercised within such period, and subject to such restrictions as may
         be specified by the Committee in the corresponding Agreement or
         otherwise; provided, that, in any event, the Nonqualified Stock Option
         shall lapse and cease to be exercisable upon a Termination of
         Employment or within such period following a Termination of Employment
         as shall have been specified in the Agreement, which period shall not
         exceed 90 days unless:

         (a)      employment shall have terminated as a result of death or
                  Disability, in which event such period shall not exceed one
                  year after the date of death or Disability; or

         (b)      death shall have occurred following a Termination of
                  Employment and while the Nonqualified Stock Option was still
                  exercisable, in which event such period shall not exceed one
                  year after the date of death;

         (c)      employment shall have terminated as a result of Retirement; or

         (d)      such provision is adjusted by the Committee;

         provided, further, that such period following a Termination of
         Employment shall in no event extend the original exercise period of the
         Nonqualified Stock Option.

         The Nonqualified Stock Option Agreement may include any other terms and
         conditions not inconsistent with this Article 6 or in Article 7, as
         determined by the Committee.

                     ARTICLE 7 - INCIDENTS OF STOCK OPTIONS

7.1      TERMS AND CONDITIONS. Each Stock Option shall be granted subject to
         such terms and conditions, if any, not inconsistent with this Plan, as
         shall be determined by the Committee, including any provisions as to
         continued employment as consideration for the grant or exercise of such
         Stock Option and any provisions which may be advisable to comply with
         applicable laws, regulations or rulings of any governmental authority.

7.2      RESTRICTIONS ON TRANSFER A Stock Option shall not be transferable by
         the Participant other than by will or by the laws of descent and
         distribution, and shall be exercisable during the lifetime of the
         Participant only by him or, in the event of his death or Disability, by
         his guardian, legal representative, executor, legatee, heir or
         distributee of the estate of the Participant. For so long as the Stock
         Purchase Agreement remains in effect, a Participant may bequest a Stock
         Option only to, or in trust for the benefit of, his spouse, children,
         or grandchildren. Notwithstanding any language herein or in any
         Agreement to the contrary, the Committee may (but need not) permit
         other transfers

                                       10

<PAGE>   14

         where the Committee concludes that such transferability (i) does not
         result in accelerated taxation, (ii) does not cause any Option intended
         to be an incentive stock option to fail to be described in Code ss.
         422(b), and (iii) is otherwise appropriate and desirable, taking into
         account any state or federal securities laws applicable to transferable
         Stock Options.

         Except as provided herein, in any Agreement, or otherwise provided by
         the Committee, no Stock Option shall be transferable. If any
         Participant makes such a transfer in violation hereof, any obligation
         of the Corporation with respect to such Stock Option shall forthwith
         terminate.

7.3      FORM OF PAYMENT. Subject to limitations set forth in the corresponding
         Agreement, the Participant may exercise a Stock Option and purchase
         Stock by:

         (a)      personal check;

         (b)      surrender of shares of Stock that either (i) are being
                  purchased pursuant to the exercise of a Stock Option such that
                  the Participant pays the Stock Option price by directing the
                  Corporation to withhold from the shares of Stock that would
                  otherwise be issued upon exercise of the Stock Option the
                  number of shares having a Fair Market Value on the exercise
                  date equal to the Option price; (ii) have been owned by
                  Participant for more than 180 days (unless the Committee
                  permits a Participant to exercise an Option by pyramiding, in
                  which event the 180 days holding period shall not apply) and
                  have been "paid for" within the meaning of SEC Rule 144 (and,
                  if such shares were purchased from the Corporation by use of a
                  promissory note, such note has been fully paid with respect to
                  such shares); or (iii) were obtained by Participant in the
                  public market;

         (c)      with the consent of the Committee, by tender of a full
                  recourse promissory note having such terms as may be approved
                  by the Committee, bearing interest at a rate sufficient to
                  avoid imputation of income under Sections 483 and 1274 of the
                  Code, and being secured by such collateral as the Committee
                  deems appropriate; provided, further, that the portion of the
                  purchase price equal to the par value of the Stock, if any,
                  must be paid in cash if required by state law; or

         (d)      with the consent of the Committee, by waiver of compensation
                  due or accrued to Participant for services rendered and/or for
                  goods delivered.

         Any such payment terms must comply with any applicable requirements
         under Rule 16b-3 of the Act.

7.4      STOCK PURCHASE AGREEMENT A Participant who exercises a Stock Option
         shall be deemed to be a party to the Stock Purchase Agreement, as
         amended, among the Corporation and its shareholders, originally
         effective July 1, 1984, and shall be subject to all provisions of such
         Stock Purchase Agreement. The Committee may place additional
         restrictions on the transfer of Stock purchased by a Participant under
         a Stock Option.

                                       11

<PAGE>   15

         Similarly, the Committee may require a Participant to enter into the
         Voting Agreement originally dated August 26, 1998 as a condition for
         the Participant's exercise of a Stock Option.

7.5      DIVIDENDS. No cash dividends shall be paid on shares of Stock subject
         to unexercised Stock Options.

7.6      DEATH OR DISABILITY. In the event of Disability or death, the
         Committee, with the consent of the Participant or his legal
         representative, may authorize payment, in cash or in Stock, or partly
         in cash and partly in Stock, as the Committee may direct, of an amount
         equal to the difference at the time between the Fair Market Value of
         the Stock subject to a Stock Option and the option price in
         consideration of the surrender of the Stock Option.

7.7      RETIREMENT. If a Participant's Termination of Employment is on account
         of Retirement, the Participant shall retain any Stock Option previously
         granted to him until the expiration of the term of the Stock Option,
         determined without regard to the Termination of Employment, so long as
         the Participant does not engage in competition with the Corporation, as
         determined by the Committee, in its sole discretion.

7.8      REPLACEMENT STOCK OPTION GRANTS. The Committee may permit the voluntary
         surrender of all or a portion of any Stock Option granted under the
         Plan to be conditioned upon the granting to the Participant of a new
         Stock Option for the same or a different number of shares of Stock as
         the Stock Option surrendered, or may require such surrender as a
         condition precedent to a grant of a new Stock Option to such
         Participant. Subject to the provisions of the Plan, and except as
         otherwise agreed by the Participant, such new Stock Option shall be
         exercisable at the same price as the surrendered Stock Option and
         during such period and on such other terms and conditions as are
         specified by the Committee at the time the new Stock Option is granted.
         Upon surrender, the Stock Options surrendered shall be canceled and the
         shares of Stock previously subject to them shall be available for the
         grant of other Stock Options. For purposes of determining the number of
         Stock Options issued pursuant to the Plan, new Stock Options offered in
         consideration for Stock Options to be surrendered shall not be
         considered as issued until such Stock Options are surrendered unless
         otherwise required by law.

                      ARTICLE 8 - AMENDMENT AND TERMINATION

8.1      AMENDMENT OR TERMINATION OF PLAN. Upon recommendation of the Committee
         or otherwise, the Board may amend or terminate the Plan at any time and
         from time to time. To the extent required by Rule 16b-3 under the Act
         (if the officers and directors of the Corporation are subject to
         Section 16 of the Act) and/or to the extent required by Code section
         422, no amendment, without approval by the Corporation's shareholders,
         shall:

         (a)      alter the group of persons eligible to participate in the
                  Plan;

                                       12

<PAGE>   16

         (b)      increase the maximum number of shares of Stock available for
                  issuance pursuant to Stock Options granted under the Plan;

         (c)      limit or restrict the powers of the Committee with respect to
                  the administration of this Plan;

         (d)      change the definition of an Eligible Participant for the
                  purpose of an Incentive Stock Option or increase the limit or
                  the value of shares of Stock for which an Eligible Participant
                  may be granted an Incentive Stock Option;

         (e)      materially increase the benefits accruing to Participants
                  under this Plan;

         (f)      materially modify the requirements as to eligibility for
                  participation in this Plan; or

         (g)      change any of the provisions of this Article 8.

         The Committee shall be entitled to create, amend or delete appendices
         to this Plan as specified herein.

8.2      EFFECT OF AMENDMENT OR TERMINATION OF PLAN. No amendment to or
         discontinuance of this Plan or any provision thereof by the Board or
         the shareholders of the Corporation shall, without the written consent
         of the Participant, adversely affect, as shall be determined by the
         Committee, any Stock Option theretofore granted to such Participant
         under this Plan; provided, however, the Committee retains the right and
         power to:

         (a)      annul any Stock Option if the Participant is terminated for
                  cause as determined by the Committee in its discretion;

         (b)      provide for the forfeiture of shares of Stock or other gain
                  under an Stock Option as determined by the Committee for
                  competing against the Corporation;

         (c)      convert any outstanding Incentive Stock Option to a
                  Nonqualified Stock Option; and

         (d)      cancel or terminate any and all Stock Options in connection
                  with any proceeding under the United States Bankruptcy Code or
                  any similar proceeding under state law for the protection of
                  creditors.

                      ARTICLE 9 - MISCELLANEOUS PROVISIONS

9.1      NO RIGHT TO EMPLOYMENT. Nothing in the Plan or any Stock Option granted
         hereunder shall confer upon any Participant any right to continue in
         the employ of the Corporation, or to serve as a director or consultant
         thereof, or interfere in any way with the right of the Corporation to
         terminate his or her employment or relationship at any time. Unless

                                       13

<PAGE>   17

         specifically provided otherwise, no Stock Option granted under the Plan
         shall be deemed salary or compensation for the purpose of computing
         benefits under any employee benefit plan or other arrangement of the
         Corporation for the benefit of its employees unless the Corporation
         shall determine otherwise. No Participant shall have any claim to a
         Stock Option until it is actually granted under the Plan. To the extent
         that any person acquires a right to receive payments from the
         Corporation under the Plan, such right shall, except as otherwise
         provided by the Committee, be no greater than the right of an unsecured
         general creditor of the Corporation. All payments to be made hereunder
         shall be paid from the general funds of the Corporation, and no special
         or separate fund shall be established and no segregation of assets
         shall be made to assure payment of such amounts, except as provided
         otherwise by the Committee.

9.2      TAX WITHHOLDING. The Corporation may make such provisions and take such
         steps as it may deem necessary or appropriate for the withholding of
         any taxes which the Corporation is required by any law or regulation of
         any governmental authority, whether federal, state or local, domestic
         or foreign, to withhold in connection with any Stock Option or the
         exercise thereof, including, but not limited to, the withholding of
         payment of all or any portion of such Stock Option or another Stock
         Option under this Plan until the Participant reimburses the Corporation
         for the amount the Corporation is required to withhold with respect to
         such taxes, or canceling any portion of such Stock Option or another
         Stock Option under this Plan in an amount sufficient to reimburse
         itself for the amount it is required to so withhold, or selling any
         property contingently credited by the Corporation for the purpose of
         paying such Stock Option or another Stock Option under this Plan, in
         order to withhold or reimburse itself for the amount it is required to
         so withhold.

         If the Corporation is required to pay, or desires to pay, an amount
         with respect to income and employment tax withholding obligations in
         connection with exercise of a Nonqualified Stock Option, and/or with
         respect to certain dispositions of Stock acquired upon the exercise of
         an Incentive Stock Option, the Committee, subject to such rules as it
         may adopt, shall permit the Participant to satisfy the obligation, in
         whole or in part, by making an irrevocable election that a portion of
         the total Fair Market Value of the shares of Stock subject to the
         Nonqualified Stock Option and/or the Incentive Stock Option, be paid in
         the form of cash in lieu of the issuance of Stock and that such cash
         payment be applied to the satisfaction of the withholding obligations.
         The amount to be withheld shall not exceed the statutory minimum
         federal and state income and employment tax liability arising from the
         Stock Option exercise transaction. Notwithstanding any other provision
         of the Plan, any election under this Section 9.2 is required to satisfy
         any applicable requirements under Rule 16b-3 of the Act.

9.3      SUBJECT TO FEDERAL AND STATE LAWS. The Plan and the grant of Stock
         Options shall be subject to all applicable federal and state laws,
         rules, and regulations and to such approvals by any United States
         government or regulatory agency as may be required. Any provision
         herein relating to compliance with Rule 16b-3 under the Act shall not
         be applicable with respect to participation in the Plan by Participants
         who are not subject to Section 16(b) of the Act.

                                       14

<PAGE>   18

9.4      SUCCESSORS AND ASSIGNS. The terms of the Plan shall be binding upon the
         Participant, the Corporation, and their successors and assigns.

9.5      GOVERNING LAW. This Plan and all actions taken hereunder shall be
         governed by the laws of the State of North Carolina, without respect to
         the principles of the choice of law or the conflicts of laws.

9.6      UNFUNDED STATUS OF PLAN The Plan is intended to constitute an
         "unfunded" plan for incentive and deferred compensation. With respect
         to any payments not yet made to a Participant by the Corporation,
         nothing contained herein shall give any such Participant any rights
         that are greater than those of a general unsecured creditor of the
         Corporation. In its sole discretion, the Committee may authorize the
         creation of trusts or other arrangements to meet the obligations
         created under the Plan to deliver shares of Stock or payments in lieu
         of or with respect to Stock Options hereunder; provided, however, that,
         unless the Committee otherwise determines with the consent of the
         affected Participant, the existence of such trusts or other
         arrangements is consistent with the "unfunded" status of the Plan.

9.7      NOTICE OF SECTION 83(b) ELECTION. Each Participant exercising a Stock
         Option hereunder agrees to give the Committee prompt written notice of
         any election made by such Participant under Section 83(b) of the Code,
         or any similar provision thereof.

9.8      SEVERABILITY OF PLAN. If any provision of this Plan or an Agreement is
         or becomes or is deemed invalid, illegal or unenforceable in any
         jurisdiction, or would disqualify the Plan or any Agreement under any
         law deemed applicable by the Committee, such provision shall be
         construed or deemed amended to conform to applicable laws or if it
         cannot be construed or deemed amended without, in the determination of
         the Committee, materially altering the intent of the Plan or the
         Agreement, it shall be stricken and the remainder of the Plan or the
         Agreement shall remain in full force and effect.

9.9      ADDITIONAL PROVISIONS The Committee may incorporate additional or
         alternative provisions for this Plan with respect to residents of one
         or more individual states to the extent necessary or desirable under
         state securities laws. Such provisions shall be set out in one or more
         appendices hereto which may be amended or deleted by the Committee from
         time to time.

9.10     RESOLUTION OF CONTROVERSY Any controversy between the Corporation and
         the Participant (including any person claiming any interest in the Plan
         through the Participant) arising out of or under the Plan, the Options
         and/or any Agreement, including the construction or application of any
         term, provision or condition of the Plan and/or an Agreement (a
         "Controversy"), shall, on the written request of either party delivered
         to the other, be submitted to non-binding mediation by an independent
         mediator selected by the mutual consent of the parties to such
         Controversy or, if the parties cannot agree, as selected by the Plan
         Administrator in its discretion. Following the determination of the
         mediator with regard to such Controversy, a party to such Controversy
         who intends to appeal such

                                       15

<PAGE>   19

         determination may do so, on the written request of such party delivered
         to the other, but only by submitting such Controversy to binding
         arbitration. Mediation shall comply with and be governed by the rules
         prescribed by the independent mediator. Arbitration shall comply with
         and be governed by the provisions of the American Arbitration
         Association.

         The cost of mediation and arbitration (defined to include only (i) the
         cost of the mediator(s) and arbitrator(s), (ii) the parties' reasonable
         attorney fees and (iii) the parties' reasonable direct, out-of-pocket
         expenses incurred in connection with such proceedings) shall be borne
         by the losing party or, if the mediator(s) or arbitrator(s) determines
         otherwise, in such proportions as the mediator(s) or arbitrator(s) so
         determines.

         Such mediation and arbitration proceeding(s) shall take place in the
         county of the Corporation's principal business office.

         IN WITNESS WHEREOF, this document is executed effective as of August 6,
1998.

                                            KRISPY KREME DOUGHNUT CORPORATION

                                  By:       /s/  Scott A. Livengood
                                            President

ATTEST:

(Corporate Seal)

/s/ Randy Casstevens
Secretary<PAGE>   1

                                                                   EXHIBIT 10.24

                      DIRECTORS' LONG-TERM INCENTIVE PLAN

                                       OF

                       KRISPY KREME DOUGHNUT CORPORATION

                 *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *

                           Adopted February 10, 1993

                           Effective January 30, 1993

<PAGE>   2

                               TABLE OF CONTENTS

ARTICLE I
  DEFINITIONS                                                                2

ARTICLE II
  PARTICIPATION                                                              3

ARTICLE III
  DEFERRED COMPENSATION                                                      3
    Section A.  Amount of Deferred Compensation                              3
    Section B.  Election to Defer Compensation                               4

ARTICLE IV
  CREDITING OF PHANTOM SHARE UNITS                                           4
    Section A.  Crediting of Phantom Share Units                             4
    Section B.  Additions to Deferred Amounts                                5
    Section C.  Valuation of Units                                           6

ARTICLE V
  DISTRIBUTION OF BENEFITS                                                   6
    Section A.  Normal Distribution of Benefits                              6
    Section B.  Distribution Upon Death                                      7
    Section C.  Distribution Upon Termination of Directorship                8
    Section D.  Distribution Upon Financial Emergency                        9
    Section E.  Withholding From Distributions                               9

ARTICLE VI
  MISCELLANEOUS                                                             10
    Section A.  Nonassignability                                            10
    Section B.  Sale, Public Offering, Merger or ESOP                       10
    Section C.  Scope of DLTIP                                              13
    Section D.  Vesting                                                     13
    Section E.  Term                                                        13
    Section F.  Administration and Interpretation                           13
    Section G.  Funding of Benefits/General Creditor Status                 15
    Section H.  Governing Law                                               15

<PAGE>   3

                      DIRECTORS' LONG-TERM INCENTIVE PLAN
                                       OF
                       KRISPY KREME DOUGHNUT CORPORATION

         THIS DIRECTORS' LONG-TERM INCENTIVE PLAN OF KRISPY KREME DOUGHNUT
CORPORATION is adopted this the 10th day of February, 1993, effective as of the
30th day of January, 1993, by Krispy Kreme Doughnut Corporation, a North
Carolina corporation with its principal office and place of business in
Winston-Salem, Forsyth County, North Carolina for the benefit of the
Participants.

                              W I T N E S S E T H:

         WHEREAS, as members of the board of directors of Krispy Kreme, the
Participants receive an annual stipend for their services; and

         WHEREAS, beginning with the Stipend earned during and for the fiscal
year ending January 28, 1994, Krispy Kreme desires to provide Participants with
the opportunity to defer the receipt of all or part of their Stipend, with the
Deferred Amount to be credited on its books in Phantom Share Units in accordance
with the terms of the DLTIP; and

         WHEREAS, Krispy Kreme intends that the DLTIP be considered an unfunded
arrangement maintained to provide deferred compensation benefits to those
directors of Krispy Kreme who receive a stipend for their services as such.

         NOW, THEREFORE, the DIRECTORS' LONG-TERM INCENTIVE PLAN OF KRISPY KREME
DOUGHNUT CORPORATION is hereby adopted to read as follows:

<PAGE>   4

                                   ARTICLE I

         For the purposes of the DLTIP, the following terms shall have the
meanings shown below:

                                  DEFINITIONS

Account(s):                the account(s) on the books and records of the
                           Company to which are credited each Participant's
                           Deferred Amount, Units, the value of the Units and
                           other adjustments thereto under the DLTIP.

Board:                     the Board of Directors of Krispy Kreme Doughnut
                           Corporation.

Company:                   Krispy Kreme Doughnut Corporation

DLTIP:                     the Directors' Long-Term Incentive Plan of Krispy
                           Kreme Doughnut Corporation.

Deferred Amount:           the amount of any Stipend deferred by a Participant
                           pursuant to Article III of the DLTIP.

Krispy Kreme:              Krispy Kreme Doughnut Corporation

Market Value:              the current market price per share at which the stock
                           is being traded in the event of a public offering of
                           the stock [See Article VI B(2)]

<PAGE>   5

Participants:              the members of the board of directors of Krispy Kreme
                           who receive a Stipend for their services as such and
                           who may participate in the DLTIP.

Service Year:              the fiscal year.

Stipend:                   the amount of compensation that a Participant
                           receives for his services as a member of the Board of
                           Directors of Krispy Kreme from time to time.

Stock:                     the issued and outstanding $10.00 Par Value Common
                           Stock of the Company (as it subsequently may be split
                           or reclassified).

Stock Purchase Agreement:  the Stock Purchase Agreement dated July 1, 1984 by
                           and among Krispy Kreme and its shareholders (as it
                           may be amended from time to time).

Units:                     phantom share units as described in Article IV
                           (sometimes referred to as "Phantom Share Units").

                                   ARTICLE II
                                 PARTICIPATION

         Prior to the beginning of each of the Company's fiscal years for which
the DLTIP is in effect, the Board shall communicate to the Participants their
right to Participate in the DLTIP. Participants for the first fiscal year of the
DLTIP (fiscal year ending January 28, 1994) were notified of their participation
for such year on the date of the adoption of the DLTIP. Such Participants shall
be set forth on Schedules Al through A5 respectively.

<PAGE>   6

                                  ARTICLE III
                             DEFERRED COMPENSATION

         Section A. Amount of Deferred Compensation. Commencing with the fiscal
year ending January 28, 1994, and continuing through the earlier of the date on
which (1) a Participant's directorship terminates for any reason; (2) the
Participant ceases to be eligible under the terms of the DLTIP; or (3) the DLTIP
ceases to be in effect pursuant to Article VI, Section E, a Participant may
elect to defer all or any portion of any Stipend that the Company may pay to him
or her for each fiscal year. The Participants Deferred Amount shall be credited
to the Participant's Account as of the date or dates any Stipend would, but for
such deferral, be payable to the Participant which, for each Service Year, is
currently payable in one lump sum in advance on or about February 1.

         Section B. Election to Defer Compensation. A Participant may elect to
defer a portion of the Stipend earned during the fiscal year ending January 28,
1994 (until a date not later than the Participant's attainment of age 70) by
filing a written Election of Deferral with the Company within 90 days of the
date the DLTIP is adopted by the Company. A Participants initial Election of
Deferral shall continue in effect pursuant to the terms thereof for Deferred
Amounts for subsequent fiscal years unless and until the Participant files with
the Company a Notice of Discontinuance or a new Election of Deferral specifying
a different amount of, and/or method of payment of, Deferred Amounts. Each
Election of Deferral filed subsequently to the initial Election of Deferral
shall similarly continue in effect until the Participant files a Notice of
Discontinuance or a new Election of Deferral. With respect to fiscal years
beginning January 28, 1994, any new Election of Deferral or Notice of
Discontinuance must be filed at least 15 days prior to the commencement of a
fiscal Year to be effective for the Stipend earned during that fiscal year;
provided however, if Participant is not a director on the first day of a fiscal
year and becomes a director during the fiscal Year, such Election must be filed
within 45 days after he or she becomes a director. Once a Notice of
Discontinuance is filed with the Company, a aid thereafter unless and until he
or she has properly filed a new Election of Deferral.

<PAGE>   7

         The form of the Election of Deferral and Notice of Discontinuance are
attached hereto as Exhibits 1 and 2 respectively.

                                   ARTICLE IV
                        CREDITING OF PHANTOM SHARE UNITS

         Section A. Crediting of Phantom Share Units. Krispy Kreme shall
establish Accounts on its books for each Participant to record the Deferred
Amount credited to each Participant, as well as any adjustments as provided in
this Article. A separate Account shall be established for each fiscal year in
which a Participant elects to defer a portion of his or her Stipend pursuant to
Article III.

         The time of Crediting of the Deferred Amounts is more Particularly set
forth in Article III Section A. With respect to each fiscal year, the Deferred
Amount credited to a Participant's Account shall be converted into Units by
dividing the Deferred Amount by the value of Krispy Kreme Stock, as described
more particularly as follows: The number of Units credited to the Participant's
Account shall equal the Deferred Amount divided by an amount equal to the
average of the of the value of the Company's Stock under the Stock Purchase
Agreement as of the end of the last five fiscal years (prior to the fiscal year
for which the Deferred Amount was earned), or, if the DLTIP has not been in
existence five years or the Participant has not been a director for five years,
the average of the value of the Company's Stock under the Stock Purchase
Agreement for fiscal years ending after the later of January 29, 1993, or the
initial date of the Participant's directorship and following. For example, for a
Stipend payable for fiscal year ending January 26, 1996, the number of Units
shall equal the Deferred Amount divided by the average of the value of the
Company's Stock under the Stock Purchase Agreement as of the end of the fiscal
years ended January 29, 1993, January 28, 1994 and January 27, 1995. For another
example, for a Stipend payable for the fiscal year ending January 28, 1994, the
number of Units shall equal the Deferred Amount divided by the value of the
Company's Stock under the Stock Purchase Agreement as of the end of the fiscal
year ending January 29, 1993.

<PAGE>   8

         Credit shall be given to Accounts for fractional Units.

         Section B. Additions to Deferred Amounts. Krispy Kreme will credit all
Units in a Participant's Accounts with additions thereon from and after the
dates Deferred Amounts are credited to a Participant's Accounts. Except as
otherwise specifically provided herein, such additions shall accrue commencing
on the date an Account first has a positive balance and shall continue up to the
date all amounts credited to the Account have been distributed to the
Participant, except as otherwise provided in the DLTIP. Additions shall be
calculated at a rate computed in whole or fractional Units, as more particularly
described below.

         (1)      Each time a dividend is paid on Krispy Kreme's Stock, there
                  shall be credited to each Participant's Accounts an amount
                  equal to the product of the number of Units previously
                  credited to the Accounts, as of the record date of such
                  dividend, times the amount of the dividend per share of Krispy
                  Kreme's Stock. The amount credited to a Participant's Accounts
                  pursuant to the preceding sentence shall then be converted
                  into Units by dividing the amount so credited by the value of
                  Stock in the same manner as set forth in Section A above as if
                  the dividend credit were a Stipend.

         (2)      After the close of each Fiscal Year, Krispy Kreme's certified
                  public accountants shall determine during their regular annual
                  audit of the Company's books the value of Krispy Kreme Stock
                  pursuant to the Stock Purchase Agreement for the most recently
                  ended fiscal year. Based on such determination, the value of
                  the Units in-a each of a Participant's Accounts as of the end
                  of the most recently ended fiscal year shall be recalculated
                  by multiplying the number of Units credited to such
                  Participant's Accounts as of the end of such fiscal year times
                  the value of the Units as determined by the accounting firm.

         (3)      The number of Units in each of a Participant's Accounts shall
                  be adjusted (as though each Unit were a share of Krispy Kreme
                  Stock) to reflect stock dividends

<PAGE>   9

                  or stock splits of Krispy Kreme Stock or any other adjustment
                  or recapitalization affecting the number of shares of Krispy
                  Kreme Stock outstanding.

         Section C. Valuation of Units. As indicated above,, the number of Units
awarded under the Plan and the value of those Units shall be determined based on
the book value of the Company's Stock, as determined pursuant to the Stock
Purchase Agreement. The Company reserves the right, however, to revise the
method used to determine the value of Units; provided, however, that any change
in the method of valuation must be identical to the method of valuation used for
determining the value of the actual shares of the Company's Stock.

                                   ARTICLE V
                            DISTRIBUTION OF BENEFITS

         Section A. Normal Distribution of Benefits. As part of the Election of
Deferral made pursuant to Article III, a Participant shall make a separate
election regarding how and when Deferred Amounts credited to his or her Account
shall be distributed to him. The Participant may elect one of the following
options:

         (1)      a lump sum payment made no earlier than the fifth anniversary
                  of the crediting of. the Deferred Amount;

         (2)      five consecutive annual installments commencing no earlier
                  than the fifth anniversary of the crediting of the Deferred
                  Amount; and

         (3)      ten consecutive annual installments commencing no earlier than
                  the fifth anniversary of the crediting of the Deferred Amount.

The time of Crediting of the Deferred Amounts is more Particularly set forth in
Article III Section A. With respect to each installment payment, the amount of
such payment shall be determined by dividing the value of the Account by the
number of payments remaining

<PAGE>   10

(including the installment for which the calculation is being made). At the time
of each installment payment the value of the Account shall be determined by
multiplying the number of Units in the Participant's Account by the value of the
Stock as of the end of the most recently ended fiscal quarter, as determined
under the Stock Purchase Agreement. At the time of such a payment, the number of
Units in the Account shall be reduced by a number equal to the result of
dividing the total number of Units remaining in the Account by the number of
remaining payments (including the installment for which the calculation is being
made).

         Regardless of the method of payment elected by the Participant,
distributions must commence no later than within a reasonable time following the
end of the fiscal year in which a Participant attains age 70.

         Section B. Distribution Upon Death. If a Participant dies prior to the
distribution of all amounts credited to his or her Accounts, the value of his or
her Accounts shall be recalculated by multiplying the number of Units then
credited to each of his or her Accounts by the value of the Stock, as determined
under the Stock Purchase Agreement, as of the most recently ended fiscal quarter
preceding his or her death. Upon the death of a Participant, there shall be no
further credits (or debits) to his or her Accounts on account of dividends or
increases (or decreases) in the value of Krispy Kreme Stock. Notwithstanding the
provisions of a Participant's Election of Deferral made pursuant to Article III,
the amounts credited to his or her Accounts after such recalculation shall be
distributed to the Participant's designated beneficiary in a lump sum at a time
determined by the Company in its sole discretion, but no later than one year
after the date of the Participant's death.

         Notwithstanding the preceding paragraph, the Company may in its sole
discretion distribute the amounts credited to a Participant's Accounts in
installment payments over a period not to exceed five years, the amount of such
installment payments to be calculated in accordance with Article V, Section A
above. Simple interest shall be credited annually to the Participant's Accounts
from the date of death until the date installment payments are completed at the
prime rate of the Company's primary bank.

<PAGE>   11

         The portion of any Stipend awarded after a Participants death which the
Participant had elected to defer under the DLTIP shall be paid in a lump sum at
the time that the Stipend would have been paid had the Election of Deferral not
been made. See Article III Section A.

         Each Participant may designate a person or persons, including a
corporation, unincorporated association or trust, as the beneficiary of his or
her Accounts under the DLTIP. Such designation must be in writing, signed by the
Participant and delivered to the Company prior to his or her death. A
Participant may from time to time revoke or change any such beneficiary
designation. Such revocation or change must have been made in writing, signed by
the Participant and delivered to the Company prior to his or her death. The
designation of beneficiary last delivered to Krispy Kreme according to its
records shall control.

         If there is no unrevoked designation on file with the Company at the
time of a participant's death or if the Participant's designated beneficiary
shall have predeceased the Participant or ceased to exist prior to the
Participant's death, the Participant's Accounts shall be distributed to his or
her estate.

         The form of a Beneficiary Designation is attached hereto as Exhibit 3.

         Section C. Distribution Upon Termination of Directorship. Upon
termination of a Participant' s directorship for any reason other than death,
the value of his or her Accounts shall be recalculated by multiplying the number
of Units credited to his or her Accounts by the value of the Stock as of the end
of the most recently ended fiscal quarter, as determined under the Stock
Purchase Agreement. Thereafter, there shall be no further credits (or debits) to
his or her Accounts on account of dividends or increases (or decreases) in the
value of Krispy Kreme Stock. Regardless of the provisions of a Participant's
Election of Deferral made pursuant to Article III, the amounts credited to his
or her Accounts pursuant to such recalculation shall be distributed to him or
her in a lump sum cash payment at a time determined by the Company in its sole
discretion, but no later than six months after the termination of the
Participant's directorship.

<PAGE>   12

         Notwithstanding the preceding paragraph, the Company may in its sole
discretion distribute the amounts credited to a Participant's Accounts in
installment payments over a period not to exceed five years, the amount of such
installment payments to be calculated in accordance with Article V., Section A
above. Simple interest shall be credited annually to the Participant's Accounts
from the time his or her directorship terminates until the date installment
payments are completed at the prime rate of the Company's primary bank. There
shall be no dividend credits or other increases in the value of a Participant's
Accounts following his or her termination of directorship.

         Section D. Distribution Upon Financial Emergency. If a Participant
establishes, to the satisfaction of the Company, that he or she is confronted by
a severe financial. hardship, the Company, in its sole discretion, may alter the
timing or manner of payment of Deferred Amounts in the manner and subject to the
conditions set forth hereafter:

         (1)      A severe financial hardship will be deemed to exist only if it
                  arises out of an emergency caused by circumstances or events
                  which are beyond the control of the Participant. A severe
                  financial hardship will be deemed to have occurred in the
                  event of the Participant's impending bankruptcy, serious
                  illness of the Participant or a dependent of the Participant,
                  or such other circumstances or events as may be determined by
                  the Company to affect severely the financial affairs of the
                  Participant or his or her immediate family.

         (2)      In the event that the Company determines that the Participant
                  is confronted by a severe financial hardship, the Company may
                  provide that all or a portion of the amounts previously
                  deferred by the Participant may be paid immediately in a lump
                  sum cash payment, or provide that all or a portion of the
                  installments payable over a period of time may be paid
                  immediately in a lump sum cash payment, or provide such other
                  payment schedule as the Company deems appropriate under the
                  circumstances.

<PAGE>   13

         (3)      In no event shall any distribution made by the Company under
                  this Subsection be in excess of the amount necessary to
                  alleviate the Participant's severe financial hardship.

         (4)      The Company's decision in passing on the severe financial
                  hardship of the . Participant, and the manner in which, if at
                  all, the payment of deferred amounts shall be altered or
                  modified shall be final, conclusive, and not subject to
                  appeal.

         (5)      For purposes of this Subsection, the term "Participant" shall
                  include the Participant, his or her designated beneficiary or
                  beneficiaries, his or her estate, or any other person claiming
                  through the Participant under this Plan as the case may be.

         Section E. Withholding From Distributions. When Krispy Kreme
distributes amounts credited to the Account of a Participant, Krispy Kreme has
the right to deduct therefrom (1) necessary amounts to provide for withholding
of required federal and state income taxes, F.I.C.A. tax, and other taxes, if
any, due on the payment; and (2),any amounts the Participant may owe the
Company. If a distribution is to be made in a form other than cash pursuant to
Article VI, Section B(3), a Participant may direct Krispy Kreme to satisfy its
withholding obligation either by reducing the amount of the distribution or in
any other manner satisfactory to the Company.

                                   ARTICLE VI
                                 MISCELLANEOUS

         Section A. Nonassignability. The payments provided for in this DLTIP to
the Participant or to his or her designated beneficiary are personal to him or
her. Neither the Participant nor his or her designated beneficiary shall have
any power or right to transfer, assign, anticipate, hypothecate or otherwise
encumber any part or all of the amounts payable hereunder.

<PAGE>   14

Such amounts shall not be subject to seizure by any creditor of any Participant
or beneficiary, by a proceeding at law or in equity, nor transferable by
operation of law in the event of the bankruptcy, insolvency or death of the
Participant or his or her designated beneficiary. Any such attempted assignment
or transfer shall be void and shall terminate the Participant's rights under the
Plan.

         Section B.  Sale, Public Offering, Merger or ESOP.

         (1)      Except as provided in Article VI Section B (3) below, if the
                  majority of the Stock of the Company is sold for cash, whether
                  pursuant to a sale of Stock, tender offer or merger, the value
                  of the Units in a Participant's Accounts shall be revalued as
                  of the effective date of such transaction by multiplying the
                  number of Units in each Account as of the day prior to the
                  effective date of such transaction by the consideration paid
                  in such transaction per share of Stock. The balance of each
                  Participants Accounts after such recalculation (less the
                  required withholding, if any) shall be distributed in full in
                  a lump sum to the Participants within sixty (60) days
                  thereafter.

         (2)      If there is a public offering of the Stock of Krispy Kreme,
                  there shall be no immediate change in the valuation of a
                  Participant's Accounts. On the first anniversary date of the
                  public offering, however, a Participant's Accounts shall be
                  revalued by multiplying the number of Units in the
                  Participants Accounts as of the date of the public offering
                  times the sum of (a) the value of each Unit immediately prior
                  to the public offering, plus (b) one-third of the difference
                  between the Market Value at such anniversary immediately prior
                  to the public offering. On the second anniversary date of the
                  public offering, a Participant's Accounts shall be revalued by
                  multiplying the number of Units in the Participant's Accounts
                  as of the public offering date times the sum of (a) the value
                  of each Unit immediately prior to the public offering, plus
                  (b) two-thirds of the difference between the Market Value at
                  such anniversary and the value of a Unit immediately prior to
                  the

<PAGE>   15

                  public offering. On the third anniversary date of the public
                  offering, a Participant's Accounts shall be revalued by
                  multiplying the number of Units in the Participant's Accounts
                  as of the public offering date times the Market Value at such
                  anniversary. Thereafter, the value of the Participant's
                  Accounts shall be at all times be determined by multiplying
                  the number of Units in the Accounts by the Market Value of the
                  Stock.

                  Notwithstanding the above, the valuation of all Units paid out
                  on account of (a) the cessation of the Participants
                  directorship; or (b) death shall be determined by multiplying
                  the number of Units for which payment is made by the Market
                  Value as of the date of distribution.

                  If (a) a Participant is scheduled to receive a distribution
                  from the Plan after the date of the public offering but prior
                  to the date on which all Units credited under the Plan are
                  first valued based solely on the Market Value of the Company's
                  Stock (third anniversary of public offering) pursuant to an
                  Election of Deferral made pursuant to Article III, and (b) the
                  Participant is a director of the Company on the date of the
                  public offering, the Participant may elect to defer the
                  payment of all amounts scheduled to be distributed to him or
                  her -until the third anniversary date of the public offering.
                  Any amounts so deferred shall be distributed upon the
                  occurrence of the third anniversary date of the public
                  offering revalued by multiplying the number of Units in the
                  Participant's Accounts times the Market Value as of the date
                  of distribution.

                  Notwithstanding any of the above, the Board shall have
                  discretion to accelerate the date upon which the value of a
                  Participant's Accounts is based on the publicly traded price
                  of the Company's Stock.

                  At all times following a public offering, the Participant's
                  Accounts shall continue to be credited with dividends pursuant
                  to the terms of the DLTIP. The DLTIP

<PAGE>   16

                  shall be amended following a public offering to provide for a
                  method of awarding Units based on a market valuation of the
                  Stock, as opposed to the valuation method in effect prior to
                  the public offering.

         (3)      In the event of a merger or similar transaction in which any
                  securities of the acquiring entity (or an affiliate thereof)
                  are to be issued to shareholders of Krispy Kreme in exchange
                  for their Stock, then

                  (a)      the Units in each of a Participant's Accounts shall
                           be revalued prior to the record date for such merger
                           or other transaction by multiplying the number of
                           Units therein times tae value of the Stock under the
                           Stock Purchase Agreement as of the end of the most
                           recently ended fiscal quarter, and

                  (b)      the Units shall be converted into Stock on the basis
                           of one share of Stock for one Unit so that the
                           Participant shall be shareholder of record for such
                           transaction and have the right to receive securities
                           or other consideration in such transaction in the
                           same fashion as other shareholders of Krispy Kreme.
                           Certificates for Stock shall be issued in the name of
                           the Participant. Fractional Units shall not be issued
                           and the value thereof shall be paid to the
                           Participant in cash.

                  (c)      Thereafter, the successor entity to Krispy Kreme
                           shall at its discretion (1) terminate the DLTIP and
                           immediately pay out all Accounts hereunder; (2)
                           freeze the DLTIP so that no additional Deferred
                           Amounts are credited to any Participant, but the
                           remaining provisions of the DLTIP remain in effect;
                           or (3) continue the DLTIP in all respects. If the
                           successor entity elects to freeze or continue the
                           DLTIP, each Participant shall have the right to
                           request and receive a distribution of his or her
                           Accounts by so electing prior to the date oil which
                           the events described in this Section

<PAGE>   17

                           B(3) occur. The amount of any such distribution shall
                           be computed in accordance with subsections (a) and
                           (b) of this Section.

         (4)      If Krispy Kreme establishes an Employee Stock Ownership Plan
                  ("ESOP"), the valuation of all Units under the DLTIP for all
                  purposes after the adoption of tae. ESOP shall be made using
                  the appraised value of the Stock under the ESOP.

         Section C. Scope of DLTIP. This DLTIP describes only the deferral of
Stipend payments to be main to a Participant and the eventual payment thereof.
It is not intended to and does not relate to any other benefits to which a
Participant may be entitled. Nothing in this DLTIP shall be deemed to constitute
a contract on behalf of Krispy Kreme to retain a Participant for a definite
length of time, as a director, or at a definite rate of compensation, and
agreements by the parties as to those matters, if any, shall be covered by other
contracts or arrangements.

         Section D. Vesting. A Participant shall always be fully vested in all
Deferred Amounts, dividends and other amounts credited to his or her Accounts.

         Section E. Term. The DLTIP shall be applicable to the Stipends for
fiscal years beginning with the fiscal year ending January 28, 1994; provided,
however, that the Board may terminate the DLTIP at any time. If the DLTIP is
terminated,, all amounts credited to a Participant's Accounts under Article IV
shall be paid at the time and in the manner designated by the Participant or
otherwise provided hereunder. In such event, the provisions of Article IV
including, but not limited to, Article IV, Section B(l) (with respect to
dividends) and Article IV, Section B(2) (with respect to the recalculation of
the value of the Units) shall continue to apply to all amounts credited to each
Account until paid.

         Section F. Administration and Interpretation. A Committee appointed by
the Board of Directors (the "Committee") shall administer the Plan in all
respects. The Committee has absolute and complete discretion to interpret the
terms of the Plan, to determine each

<PAGE>   18

Participant's eligibility for benefits under the Plan, and to determine the
amount of benefits due under the Plan.

         (1)      Claims. A person who believes that he or she is being denied a
                  benefit to which he or she is entitled under the Plan
                  (hereinafter referred to as "Claimant") may file a written
                  request for such benefit with the Committee,, setting forth
                  his or her claim. The request must be addressed to the
                  Committee at the Company's principal place of business.

         (2)      Claim Decision. Upon receipt of a claim, the Committee shall
                  advise the claimant that a reply will be forthcoming within 90
                  days and shall in fact, deliver such reply within such period.
                  The Committee may, however, extend the reply period for an
                  additional 90 days for reasonable cause.

                  If the claim is denied in whole or in part, the Committee
                  shall adopt a written opinion, using language calculated to be
                  understood by the Claimant, setting forth:

                  (a)      The specific reason or reasons for such denial;

                  (b)      The specific reference to pertinent Provisions of
                           this Plan on which such denial is based;

                  (c)      A description of any additional material or
                           information necessary for the Claimant to perfect his
                           or her claim and an explanation why such material or
                           such information is necessary;

                  (d)      Appropriate information as to the steps to be taken
                           if the Claimant wishes to submit the claim for
                           review; and

<PAGE>   19

                  (e)      The time limits for requesting a review under
                           subsection c. and for review under subsection d.
                           hereof

         (3)      Request for Review. Within 60 days after the receipt by the
                  Claimant of the written opinion described above, the Claimant
                  may request in writing that the Company review the
                  determination of the Committee. Such request must be addressed
                  to the Company, at its then principal place of business. The
                  Claimant or his or her duly authorized representative may, but
                  need not, review the pertinent documents and submit issues and
                  comments in writing for consideration by the Company. If the
                  Claimant does not request a review of the Committee's
                  determination by the Company within such 60 day period, he or
                  she shall be barred and estopped from challenging the
                  Committee's determination.

         (4)      Review of Decision. Within 60 days after the Company's receipt
                  of a request for review, it will review the Committee's
                  determination. After considering all materials presented by
                  the Claimant, the Company will render a written opinion,
                  written in a manner calculated to be understood by the
                  Claimant, setting forth the specific reasons for the decision
                  and containing specific references to the pertinent provisions
                  of this Plan on which the decision is based. If special
                  circumstances require that the 60 day time period be extended,
                  the Company will so notify the Claimant and will render the
                  decision as soon as possible, but no later than 120 days after
                  receipt of the request for review.

         Section G. Funding of Benefits/General Creditor Status. The amounts
credited to each Participant's accounts shall not be held in any trust or
separate fund that would cause the Plan to be considered "funded" for purposes
of ERISA. Such amounts shall not be secured by any specific assets of the
Company nor shall any specific assets of Krispy Kreme be designated as allocated
to the satisfaction of its obligations to any Participant hereunder. Each
Participant's

<PAGE>   20

right to receive payment for amounts credited to his or her Accounts shall be
those of a general creditor of the Company.

         Section H. Governing Law. This DLTIP shall be construed in accordance
with and governed by the laws of the State of North Carolina.

         IN WITNESS WHEREOF, the Company has cause the DLTIP to be executed in
its name and behalf by its duly authorized representative as of the date written
above.

                                    KRISPY KREME DOUGHNUT CORPORATION

                                    By:  /s/ Scott A. Livengood
                                         Scott A. Livengood, President

ATTEST:

/s/  John L. Barber
John L. Barber, Assistant Secretary

<PAGE>   21

                                  Schedule Al
                                  Participants
                      Fiscal Year Ending January 28, 1994

Name:

         Robert J. Simmons

         Steven D. Smith

Note:    Elbert N. Herring is a participant in the Employees Long Term Incentive
         Plan

<PAGE>   22

                                  Schedule A2
                                  Participants
                      Fiscal Year Ending January 27, 1995

<PAGE>   23

                                  Schedule A3
                                  Participants
                      Fiscal Year Ending January 26, 1996

<PAGE>   24

                                  Schedule A4
                                  Participants
                       Fiscal Year Ending January 31,1997

<PAGE>   25

                                  Schedule A5
                                  Participants
                      Fiscal Year Ending January 30, 1998

<PAGE>   26

                                   EXHIBIT 1
                              ELECTION OF DEFERRAL
                                     UNDER
                      DIRECTORS' LONG-TERM INCENTIVE PLAN
                                       OF
                       KRISPY KREME DOUGHNUT CORPORATION

                      ____________________________________

I hereby make the following elections under the Long-Term Incentive Plan with
respect to my Stipend commencing with the Stipend for the fiscal year ending
January ___,199__. I understand that such elections shall remain in effect
unless and until a new Election of Deferral or Notice of Discontinuance is
properly filed. Any new Election of Deferral or Notice of Discontinuance shall
have no effect on amounts previously deferred under the Plan.

I.       Deferred Compensation Election

         I elect to defer ____% of my Stipend under the Directors' Long-Term
         Incentive Plan in excess of $__________, to be paid out as follows:

         [ ] Lump sum payable on _________________ of the _______ year
             following Stipend is credited to my Account*;

         [ ] Five consecutive annual installments commencing ______*; or

         [ ] Ten consecutive annual installments commencing ______*.

No payment shall be made earlier than the fifth anniversary of the crediting of
the portion of the Stipend so deferred to my Account; PROVIDED, HOWEVER,
distributions must commence no later than within a reasonable time following the
end of the fiscal year in which a Participant attains age 70.

*The Stipend so deferred is credited to my Account at the time the Stipend would
have been paid to me had it not been deferred which, for each Service Year, is
currently payable in one lump sum in advance on or shortly before the annual
meeting of shareholders on which such Service Year begins.

II.      Lump Sum Cash Payment

         I elect to receive ______________% or $____________ of my Stipend
         commencing with the Stipend for the fiscal year ending January ____,
         199__ in cash, to be paid in one lump sum payment at the normal time
         for the payment of the Stipend.

         PARTICIPANT

         _______________________(SEAL)        __________________
                                                     Date

Receipt by Krispy Kreme Doughnut Corporation Acknowledged

By: ____________________________              __________________
                                                     Date

<PAGE>   27

                                   EXHIBIT 2

                            NOTICE OF DISCONTINUANCE
                                       OF
                              ELECTION OF DEFERRAL
                                     UNDER
                      DIRECTORS' LONG-TERM INCENTIVE PLAN
                                       OF
                       KRISPY KREME DOUGHNUT CORPORATION

                      ____________________________________

I do hereby revoke my Election of Deferral dated __________, 199___. I
understand that 100 % of any Stipend paid to me for fiscal years beginning after
this revocation shall be paid to me in cash at the normal time for payment of
the Stipend under the Company's directors compensation policy.

This the ____ day of _________________, 199___.

                                             PARTICIPANT

                                             ___________________________________

Receipt on behalf of Krispy Kreme Doughnut Corporation acknowledged

By _____________________________
Title __________________________

Dated _______ day of ________________, 199____

<PAGE>   28

                                   EXHIBIT 3

                            BENEFICIARY DESIGNATION
                                     UNDER
                      DIRECTORS' LONG-TERM INCENTIVE PLAN
                                       OF
                       KRISPY KREME DOUGHNUT CORPORATION

                      ____________________________________

If I die prior to receiving all of amounts credited to my Accounts under the
Directors' Long-Term Incentive Plan and any future amendments or restatements
thereof or successor plans thereto (the "DLTIP"), I hereby designate the
following primary beneficiary as recipient of such benefits:

                                                              Relation to
         Name                       Address                   Participant
         ----                       -------                   -----------

________________________   _________________________   _________________________

________________________   _________________________   _________________________

In the event the above-named primary beneficiary fails to survive me or
otherwise ceases to exist prior to the date of my death, I hereby designate the
following contingent beneficiary as recipient of such benefits:

                                                              Relation to
         Name                       Address                   Participant
         ----                       -------                   -----------

________________________   _________________________   _________________________

________________________   _________________________   _________________________

I do hereby revoke all previous beneficiary designations made under the DLTIP
and I understand that the above designations are revocable by me at any time
prior to my death. This Beneficiary Designation is not valid until delivered to
and acknowledged by Krispy Kreme Doughnut Corporation.

___________________________________         ______________________________(SEAL)
Date                                        Participant

WITNESSED BY:

___________________________________

Receipt by Krispy Kreme Doughnut Corporation Acknowledged

By: _______________________________
Dated: _____ day of _______________, 19__.

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