Document:

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                                                                   EXHIBIT 10.25

SATISFACTION:  The Debt evidenced by
this Note has been satisfied in full this
_______ day of _____________, 19__
Signed:  __________________________

                                 PROMISSORY NOTE
                             AND SECURITY AGREEMENT

                                                               Winston-Salem, NC

$"AMOUNT"                                                        AUGUST 31, 1998

   FOR VALUE RECEIVED the undersigned promises to pay to KRISPY KREME DOUGHNUT
CORPORATION or order, the principal sum of "PAYMENT" and 00/100 DOLLARS
($"AMOUNT") with interest from the date hereof at the rate of six percent (6%)
per annum on the unpaid balance until paid or until default, both principal and
interest payable in lawful money of the United States of America, at the office
of KRISPY KREME DOUGHNUT CORPORATION, P O BOX 83, WINSTON-SALEM, NORTH CAROLINA
27102-0083 (ATTENTION: RANDY S. CASSTEVENS) or at such place as the legal holder
hereof may designate in writing. The principal and interest shall be due and
payable in 10 equal consecutive annual payments of principal and interest in the
amount of $"ANNUAL" each, such installments to be paid on AUGUST 31 of each
year during the term hereof, the first such payment being due and payable on
AUGUST 31, 1999 with a final payment of all unpaid principal and all accrued and
unpaid interest herein due and payable on AUGUST 31, 2008. Payee has advanced
Maker $"M_1stPay" of the total principal owed hereunder on the date hereof and
Maker acknowledges receipt thereof. An additional amount of $"M_2ndPay" shall
be advanced by Payee to maker on or before February 26, 1999.

   If not sooner paid, the entire remaining indebtedness (including, but not
limited to, all unpaid principal and all accrued and unpaid interest and all
other sums due hereunder) shall be due and payable on AUGUST 31, 2008.
Notwithstanding the foregoing, in the event the undersigned for any reason
ceases to be a full-time employee of Krispy Kreme Doughnut Corporation, Payee
may declare all sums due under this Note to be immediately due and payable.

   If payable in installments, each such installment shall, unless otherwise
provided, be applied first to payment of interest then accrued and due on the
unpaid principal balance, with the remainder applied to the unpaid principal.

   Unless otherwise provided, this Note may be prepaid in full or in part at any
time without penalty or premium. Partial prepayments shall be applied to
installments due in reverse order of their maturity.

   In the event of (a) default in payment of any installment of principal or
interest hereof or under any other note from Maker to Payee as the same becomes
due and such default is not cured within ten (10) days from the due date, or (b)
default under the terms of any instrument securing this Note, or under the terms
of the security agreement made in, and/or security interest given under, this
Note and such default is not cured within fifteen (15) days after written notice
to Maker, then in either such event the holder may without further notice,
declare the remainder of the principal sum, together with all interest accrued
thereon at once due and payable. Failure to exercise this option shall not
constitute a waiver of the right to exercise the same at any other time. The
unpaid principal of this Note and any part thereof, accrued interest and all
other sums due under this Note and any instrument securing this Note shall bear
interest at the rate of twelve percent (12%) per annum after default until paid.

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   In the event this Note is not paid when due (whether on the due date set
forth above or on such earlier date as provided upon default or the happening of
other events set forth in this Note) then Payee shall have the right to exercise
all rights granted under this Note to it and shall have the following additional
rights as well: (i) the right to treat such non-payment as an offer to sell the
shares to a third party under subparagraph 2(a) of the Stock Purchase Agreement
by and between Payee and its shareholders dated July 1, 1984, as amended, (the
terms of which are incorporated herein by reference) and the consequent right to
purchase the Shares (as defined below) under the terms of said Agreement and
(ii) the right to deduct from the proceeds of such sale to Payee all amounts
owed under this Note, paying to Maker only the balance of the proceeds of such
sale remaining after payment of all sums due under this Note and all expenses
incurred by Payee in connection with such sale. In the event the Stock Purchase
Agreement is no longer in effect at the time Payee exercises such rights, then,
between Maker and Payee, Payee shall retain the right under subparagraph 2(a) of
the Stock Purchase Agreement to purchase such Shares as if Maker had determined
to sell such Shares to a third party and the purchase price shall be the average
of the closing price on the five (5) trading days preceding the purchase by
Payee, or, if shares of Krispy Kreme Doughnut Corporation are not then publicly
traded, then the purchase price shall be the then most recent appraised value of
the class of shares of Krispy Kreme Doughnut Corporation of which the Shares are
a part.

   All parties to this Note, including maker and any sureties, endorsers, or
guarantors hereby waive protest, presentment, notice of dishonor, and notice of
acceleration of maturity and agree to continue to remain bound for the payment
of principal, interest and all other sums due under this Note and any instrument
securing this Note notwithstanding any change or changes by way of release,
surrender, exchange, modification or substitution of any security for this Note
or by way of any extension or extensions of time for the payment of principal
and interest; and all such parties waive all and every kind of notice of such
change or changes and agree that the same may be made without notice or consent
of any of them.

   Upon default the holder of this Note may employ an attorney to enforce the
holder's rights and remedies and the maker, principal, surety, guarantor and
endorsers of this Note hereby agree to pay to the holder reasonable attorneys
fees not exceeding a sum equal to fifteen percent (15%) of the outstanding
balance owing on said Note, plus all other reasonable expenses incurred by the
holder in exercising any of the holder's rights and remedies upon default. The
rights and remedies of the holder as provided in this Note and any instrument
securing this Note shall be cumulative and may be pursued singly, successively,
or together against the property described herein and/or in any instrument
securing this Note or any other funds, property or security held by the holder
for payment or security, in the sole discretion of the holder. The failure to
exercise any such right or remedy shall not be a waiver or release or such
rights or remedies or the right to exercise any of them at another time.

   This Note is to be governed and construed in accordance with the laws of the
State of North Carolina. As used herein, the term "Note" shall include the
security agreement contained herein.

   This Note is given for money owed. To further secure this Note, Maker(s)
grants Payee a first priority security interest under Chapter 25 of the North
Carolina General Statutes (the "UCC") in those shares of Krispy Kreme Doughnut
Corporation represented by certificate number "Cert" together with all
certificates, shares, options, rights or other distributions issued as an
addition to, in substitution or in exchange for, or on account of, any such
shares, and all proceeds of the foregoing, now or hereafter owned or acquired by
Maker (the "Shares") and agrees that such certificate or other documents
representing the Shares shall remain in the possession of Payee until this Note
is paid in full. Payee shall have all rights of a secured party applicable under
the UCC and under this Note, such rights being cumulative. The undersigned
agrees not to transfer or convey (by sale, gift, devise or otherwise), grant a
security interest in, pledge or otherwise encumber the Shares or any interest
therein without the prior written consent of the Payee, which consent Payee may
grant or withhold in its sole discretion. In addition to, and not in limitation
of the foregoing, in the event of any attempted transfer, pledge or encumbrance
of the Shares or any interest therein, whether or not consented to by Payee (and
whether by sale, gift,

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devise or otherwise), Payee may declare all sums due under this Note immediately
due and payable. The Shares shall bear a legend in form satisfactory to Payee
stating they are subject to this Note and Security Agreement. The undersigned
agrees to execute such further instruments, security agreements and financing
statements, and to take such other actions, as Payee may from time to time
request to evidence and/or perfect such security interest. In the event such
security interest ever constitutes a lower than first priority security
interest, Payee may declare this Note in default and no cure period for such
default shall exist unless required by applicable law, in which event such cure
period shall be the minimum required by applicable law.

   In the event that during the term of this Note, any additional shares,
options, or warrants issued in connection with the Shares shall be issued to the
Maker, such additional shares, option or warrants shall be immediately assigned
and delivered to Payee, endorsed in blank, to be held under the terms of this
Note in the same manner as the Shares. Furthermore, Maker agrees to execute and
deliver to Payee any necessary endorsement and/or appropriate stock power duly
executed in blank to be held by Payee and to be used to effect Payee's rights
under this Note.

   Upon the occurrence and during the continuance of any event of default, any
and all dividends and distributions paid or payable in respect of the Shares
shall be delivered to Payee, together with any necessary endorsement and/or
appropriate stock powers duly executed in blank, to be (i) if cash, applied
against amounts owing by Maker under this Note and (ii) if not cash, held by
Payee in the same manner as the Shares, subject to Payee's rights and remedies
as provided herein.

   The Maker hereby irrevocably appoints Payee and any officer thereof the
Maker's Attorney In Fact, with full power of substitution for and on behalf and
in the name of Maker, during the existence and continuance of any default, in
the Payee's sole discretion, to take any action and to execute any instrument
which the Payee may deem necessary or advisable to accomplish the purposes of
this Note, including, without limitation, the right to sell the Shares or
exercise any and all of its rights and remedies under this Note and applicable
law. This Power of Attorney is a Power coupled with an interest and shall be
irrevocable and is conferred on the Payee solely to protect, preserve and
realize on its security interest in the Shares. This Power of Attorney shall be
durable.

                                IN TESTIMONY WHEREOF, THE MAKER HAS SET HIS
                             HAND TO THIS INSTRUMENT AND ADOPTED AS HIS SEAL THE
                             WORD "SEAL" APPEARING BESIDE HIS SIGNATURE THE
                             DAY AND YEAR FIRST ABOVE WRITTEN.

                             ____________________________________________ (SEAL)
                                  "FIRSTNAME"            "LASTNAME"<PAGE>   1

                                                                   EXHIBIT 10.26

                      RESTRICTED STOCK PURCHASE AGREEMENT

         THIS RESTRICTED STOCK PURCHASE AGREEMENT (the "Agreement"), made as of
the __th day of ________, 1993 by and between KRISPY KREME DOUGHNUT CORPORATION
(the "Company") and __________ (the "Participant").

         For valuable consideration, receipt of which is acknowledged, the
parties agree as follows:

         1. Purchase of Shares. The Participant subscribes for and, upon
acceptance by the Company, shall purchase, subject to the terms and conditions
set forth in this Agreement, ___ shares (the "Shares") of common stock ("common
stock"), $10.00 par value, of the Company at a purchase price of $10.00 per
share. The aggregate purchase price of the Shares shall be paid by the
Participant by check, payable to the order of the Company, or such other method
as may be acceptable to the Company. Upon the Company's receipt of payment for
the Shares, the Company shall issue to the Participant one or more certificates
in the name of the Participant for that number of Shares purchased by the
Participant. The Participant agrees that the Shares shall

         (a)      be subject to the Repurchase Option set forth in Section 2 of
                  this Agreement and the restrictions on transfer set forth in
                  Section 4 of this Agreement;

         (b)      be considered issued when they are no longer subject to the
                  Repurchase Option (but shall not be considered issued so long
                  as they are subject to the Repurchase Option); and

         (c)      shall not be entitled to vote or receive dividends or other
                  distributions on common stock while subject to the Repurchase
                  Option.

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         2. Repurchase Option.

         (a)      If the Participant ceases to be employed by the Company or
                  ceases to be a member of the board of directors (as is
                  applicable) by the Company for any reason other than death or
                  disability prior to any of the dates set forth on Schedule A,
                  the Company shall have the right and Option (the "Repurchase
                  Option") to Purchase any or all of the Shares subject to the
                  Repurchase Option prior to such date as more particularly set
                  forth on Schedule A from the Participant at the same price as
                  the Participant paid for the Shares.

         (b)      For Purposes of this Agreement, employment with the Company
                  shall include employment with a parent or subsidiary of the
                  Company.

         3. Exercise of Repurchase Option and Closing.

         (a)      Upon the termination of the employment of the Participant or
                  the cessation of his directorship [as referred to in
                  subsection 2 (a) above], the Repurchase Option shall be
                  deemed to be automatically exercised by the Company unless
                  the Company delivers or mails written notice of nonelection of
                  exercise of the Repurchase Option within 30 days thereafter in
                  accordance with section 14.

         (b)      Unless the Company gives such written notice of nonelection
                  within 30 days after the termination of the employment of the
                  Participant or the cessation of his directorship [as referred
                  to in subsection 2 (a) above], the Participant shall tender to
                  the Company at its principal offices the certificate or
                  certificates representing such number of Shares that the
                  Company has elected to purchase, duly endorsed in blank by the
                  Participant or with duly endorsed stock powers attached, all
                  in form suitable for the transfer

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                  of the Shares of the Company. Upon its receipt of these
                  Shares, the Company shall deliver or mail to the Participant
                  a check in the amount of the aggregate Option Price.

         (c)      After the date(s) set forth in Schedule A with respect to the
                  number of Shares set opposite such date or after such Shares
                  are otherwise not subject to the Repurchase Option pursuant
                  to subsection 3 (c) above, such Shares shall then be subject
                  to all of the terms and provisions of the Stock Purchase
                  Agreement by and between the Company and its shareholders
                  dated July 1, 1984 (the "Stock Purchase Agreement") and all
                  the restrictions on transfer set forth therein as if the
                  Participant and the Company had executed such agreement. The
                  termination of such Participant's employment or directorship
                  shall be deemed to constitute written notice of a proposed
                  transfer, disposition or sale thereof under subsection 2 (a)
                  of such Stock Purchase Agreement.

         (d)      The purchase price for such Shares may be payable, at the
                  discretion of the Company, in cancellation of all or a portion
                  of any outstanding indebtedness of the Participant to the
                  Company, or in cash (by check), or both.

         (e)      If, at any time, prior to the exercise of the Repurchase
                  Option under sub section 3 (a) above, the common stock of the
                  Company is acquired through merger, acquisitions
                  consolidation, purchase, tender offer or otherwise (the
                  "Acquisition"), the Participant shall be paid by the Company
                  a sum of money determined by multiplying the cash price per
                  share (or monetary equivalent thereof) received by the holders
                  of the common stock times the number of shares then subject to
                  the Repurchase Option. Such payment shall be made upon the
                  Closing of the Acquisition.

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         4. Restrictions on Transfer.

         (a)      Except as otherwise provided in subsection 4(b), the
                  Participant shall not, during the term of the Repurchase
                  Option, sell, assign, transfer, pledge, hypothecate, or
                  otherwise dispose of, by operation of law or otherwise
                  (collectively "transfer"), any of the Shares, or any interest
                  therein, unless the Shares are no longer subject to the
                  Repurchase Option.

         (b)      Notwithstanding the foregoing, the Participant may transfer
                  Shares to or for the benefit of any spouse, child or
                  grandchild, or to a trust for their benefit, provided that
                  those Shares shall remain subject to this Agreement, including
                  without limitation the restrictions on transfer set forth in
                  this Section 4 and the Repurchase Option, and the permitted
                  transferee shall, as a condition to the transfer, deliver to
                  the Company a written instruction confirming that the
                  transferee shall be bound by all of the terms and conditions
                  of this Agreement.

         5. Effect of Prohibited Transfer. The Company shall not be required:

         (a)      To transfer on its books any of the Shares that shall have
                  been sold or transferred in violation of any of the provisions
                  set forth in this Agreement; or

         (b)      To treat as owner of those Shares or to pay dividend to any
                  transferee to whom any of those Shares shall have been sold or
                  transferred in violation of any of the provisions set forth in
                  this Agreement.

         6. Restricted Legend. All certificates representing Shares shall have
affixed thereto legends in substantially the following form, in addition to any
other legends that may be required under federal or state securities laws:

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         (a)      "The shares of stock represented by this certificate are
                  subject to restrictions on transfer and an option to purchase
                  set forth in a Restricted Stock Purchase Agreement between the
                  corporation and the registered owner of this certificate (or
                  his predecessor in interest). This Agreement is available for
                  inspection without charge at the office of the Secretary of
                  the Corporation"; and

         (b)      The same legend as required by the Stock Purchase Agreement.

         7. Investment Representations. The Participant represents, warrants,
and covenants as follows:

         (a)      The Participant is purchasing the Shares for his own account
                  for investment only, and not with a view to, or for sale in
                  connection with, any distribution of the Shares in violation
                  of the Securities Act of 1933 (the "Securities Act"), or any
                  rule or regulation under the Securities Act.

         (b)      He has had an opportunity he deems adequate to obtain from
                  representatives of the Company the information necessary to
                  permit him to evaluate the merits and risks of his investment
                  in the Company.

         (c)      He has sufficient experience in business, financial and
                  investment matters to be able to evaluate the risks involved
                  in the purchase of the Shares and to make an informed
                  investment decision with respect to that purchase.

         (d)      He can afford a complete loss of the value of the Shares and
                  is able to bear the economic risk of holding the Shares for an
                  indefinite period.

         (e)      He understands that:

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                  (i)      The Shares cannot be sold, transferred, or otherwise
                           disposed of unless they are subsequently registered
                           under the Securities Act or an exemption from
                           registration is then available; and

                  (ii)     The Company has no obligation or current intention to
                           register the Shares under the Securities Act.

         (f)      A legend substantially in the following form will be placed on
                  the certificate representing the Shares:

                  "The shares represented by this certificate have not been
                  registered under the Securities Act of 1933, as amended, and
                  may not be sold, transferred or otherwise disposed of in the
                  absence of an effective registration statement under the Act
                  or an opinion of counsel satisfactory to the corporation to
                  the effect that registration is not required."

         8. Adjustments. If from time to time during the term of the Repurchase
Option, there is any stock split, stock dividend, stock distribution, or other
reclassification of the common stock of the Company, or any merger,
consolidation, or sale of substantially all of the assets of the Company, any
and all new, substituted, or additional securities to which the Participant is
entitled by reason of his ownership of the Shares shall be subject immediately
to all of the terms and conditions of this Agreement (and be included as
"Shares"), and other provisions of this Agreement in the same manner and to the
same extent as the Shares, and the option price shall be adjusted appropriately.

         9. Withholding Taxes.

         (a)      The Participant acknowledges and agrees that the Company has
                  the right to deduct from payments of any kind otherwise due to
                  the Participant any

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                  federal, state or local taxes of any kind required by law to
                  be withheld with respect to the purchase of the Shares by the
                  Participant.

         (b)      If the Participant elects, in accordance with Section 83(b) of
                  the Internal Revenue Code of 1954, as amended, to recognize
                  ordinary income in the year of acquisition of the Shares, the
                  Company will require at the time of that election an
                  additional payment for withholding tax purposes based on the
                  difference, if any, between the purchase price for the Shares
                  and the fair market value of the Shares as of the day
                  immediately preceding the date of the purchase of the Shares
                  by the Employee.

         10. Severability. The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provisions of this Agreement, and each other provision of this Agreement shall
be severable and enforceable to the extent permitted by law.

         11. Waiver. Any provision contained in this Agreement may be waived,
either generally or in any particular instance, by the Board of Directors of the
Company.

         12. Binding Effect. This Agreement shall be binding upon, and inure to
the benefit of, the Company and the Participant and their respective heirs,
executors, administrators, legal representatives, successors, and assigns,
subject to the restrictions on transfer set forth in Section 4 of this
Agreement.

         13. No Rights to Employment. Nothing contained in this Agreement shall
be construed as giving the Participant any right to be retained, in any
position, as an employee and/or director of the Company for any definite period
of time.

         14. Notice. All notices required or permitted hereunder shall be in
writing and deemed effectively given upon personal delivery or upon deposit in
the United States Post

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Office, by registered or certified mail, postage prepaid, addressed to the other
party at the address shown beneath his or its respective signature to this
Agreement, or at such other address or addresses as either party shall designate
to the other in accordance with this Section 14.

         15. Pronouns. Whenever the context may require, any pronouns used in
this Agreement shall include the corresponding masculine, feminine, or neuter
forms. The singular form of nouns and pronouns shall include the plural, and the
plural form of nouns and pronouns shall include the singular.

         16. Entire Agreement. This Agreement constitutes the entire agreement
between the parties and supersedes all prior agreements and understandings
relating to the subject matter of this Agreement.

         17. Amendment. This Agreement may be amended or modified only by a
written instrument executed by both the Company and the Participant.

         18. Governing Law. This Agreement shall be construed, interpreted, and
enforced in accordance with the laws of North Carolina.

         IN WITNESS WHEREOF, the Participant has executed this Agreement as of
the day and year first above written and the Company has caused it to be
executed by one of its duly authorized officers.

                                     COMPANY
                                     KRISPY KREME DOUGHNUT CORPORATION

                                     By: _________________________
                                         Scott A. Livengood, President
                                         P O Box 83
                                         Winston-Salem, NC 27102-0083

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                                   PARTICIPANT

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