Summary of KRISPY KREME DOUGHNUTS INC

Item 1.01. Entry into a Material Definitive Agreement.

On January 14, 2013, the Board of Directors of Krispy Kreme Doughnuts, Inc., a North Carolina corporation (the "Company"), entered into a Tax Asset Protection Plan (the "Rights Agreement") between the Company and American Stock Transfer & Trust Company, LLC, a New York limited liability trust company, as Rights Agent (the "Rights Agent"). Pursuant to the Rights Agreement, on January 14, 2013, the Board of Directors declared a dividend of one right (a "Right") for each outstanding share of common stock, no par value ("Common Stock"), of the Company held of record at the close of business on January 24, 2013 (the "Record Time"), or issued thereafter and prior to the Separation Time (as hereinafter defined) and pursuant to options and convertible securities outstanding at the Separation Time. Each Right entitles its registered holder to purchase from the Company, after the Separation Time, one one-hundredth of a share of Series A Participating Cumulative Preferred Stock, no par value ("Participating Preferred Stock"), for $45.00 (the "Exercise Price"), subject to adjustment.

The Board of Directors adopted the Rights Agreement because (i) the Company and certain of its subsidiaries have net operating losses and certain other tax attributes (collectively, "NOLs") which are valuable for United States federal income tax purposes, (ii) the Company desires to avoid an "ownership change" within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended (the "Code"), and (iii) the Board of Directors expects the Rights Agreement will enable the Company to better preserve its ability to utilize such NOLs. The Company's independent Directors will evaluate the Rights Agreement annually to determine whether it continues to be in the best interests of the Company's shareholders.

Initially, the Rights will be evidenced by the Common Stock certificates. The Rights will separate from the Common Stock at the "Separation Time," which generally will occur upon the earlier of (i) the tenth business day (or such later date as the Board of Directors may determine) after the date on which any person or group commences a tender or exchange offer which, if consummated, would result in such person or group becoming an "Acquiring Person" (as defined below) and (ii) the time of the first event causing a "Flip-in Date." A Flip-in Date will occur on the first date on which the Company publically announces that a person or group has become an "Acquiring Person" or such later date and time as the Board of Directors of the Company may from time to time fix by resolution.

Pursuant to the Rights Agreement, a person shall be deemed to "Beneficially Own" any securities (i) which such person directly owns, (ii) which such person would be deemed to indirectly or constructively own for purposes of Section 382 of the Code and the Treasury Regulations promulgated thereunder or (iii) which any other person Beneficially Owns but the persons together are treated as one "entity" as defined under Treasury Regulation 1.382-3(a) (1). A person shall not be deemed to "Beneficially Own" any security (A) if such beneficial ownership arises solely as a result of such person's status as a "clearing agency," (B) solely because such security has been tendered pursuant to a tender or exchange offer made by such person or any of such person's affiliates or associates until such tendered security is accepted for payment or exchange, or (C) solely because such person or any of such person's affiliates or associates has or shares the power to vote or direct the voting of such security pursuant to a revocable proxy or consent given in response to a public proxy or consent solicitation made pursuant to the Securities Exchange Act of 1934, unless such power is reportable under Schedule 13D.

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An "Acquiring Person" is any person who is or becomes the Beneficial Owner of 4.99% or more of the outstanding shares of Common Stock at any time after the first public announcement of the Rights Agreement; provided, however, that the term "Acquiring Person" shall not include (i) any person who is the Beneficial Owner of 4.99% or more of the outstanding shares of Common Stock at the time of the first public announcement of the adoption of the Rights Agreement and who continuously thereafter is the Beneficial Owner of 4.99% or more of the outstanding shares of Common Stock (an "Existing Holder"), until such time thereafter as such person becomes the Beneficial Owner (other than by means of a stock dividend, stock split or reclassification) of additional shares of Common Stock, (ii) any person who becomes the Beneficial Owner of 4.99% or more of the outstanding shares of Common Stock after the time of the first public announcement of the Rights Agreement solely as a result of (A) an acquisition by the Company of shares of Common Stock or (B) an acquisition directly from the Company in a transaction which duly authorized officers of the Company have determined shall not result in the creation of an Acquiring Person under the Rights Agreement, until, in each case, such time thereafter as such person becomes the Beneficial Owner (other than by means of a stock dividend, stock split or reclassification) of additional shares of Common Stock while such person is or as a result of which such person becomes the Beneficial Owner of 4.99% or more of the outstanding shares of Common Stock, (iii) any person who the Board of Directors determines, in its sole discretion, has inadvertently become the Beneficial Owner of 4.99% or more of the outstanding shares of Common Stock, if such person promptly divests sufficient shares of Common Stock so that such person ceases to be the Beneficial Owner of 4.99% or more of the outstanding shares of Common Stock or (iv) any person determined by the Board of Directors to be an "Exempt Person" in accordance with the Rights Agreement for so long as such person complies with any limitations or conditions required by the Board of Directors in making such determination. In addition, the Company, any subsidiary of the Company and any employee stock ownership or other employee benefit plan of the Company or a subsidiary of the Company (or any entity or trustee holding shares of Common Stock for or pursuant to the terms of any such plan or for the purpose of funding any such plan or funding other employee benefits for employees of the Company or of any subsidiary of the Company) shall not be an Acquiring Person. Any calculation of the number of shares of Common Stock outstanding at any particular time, for purposes of determining the particular percentage of such outstanding Common Stock of which any person is the Beneficial Owner, shall be made pursuant to and in accordance with Section 382 of the Code and the Treasury Regulations promulgated thereunder.

Any person who desires to effect any acquisition of Common Stock that might, if consummated, result in such person beneficially owning 4.99% or more of the then-outstanding Common Stock (or, in the case of an Existing Holder, additional shares of Common Stock) (a "Requesting Person") may request that the Board of Directors grant an exemption with respect to such acquisition under the Rights Agreement so that such person would be deemed to be an "Exempt Person" under the definition of Acquiring Person (an "Exemption Request"). An Exemption Request must set forth the information specified in the Rights Agreement. The Board of Directors shall endeavor to respond to an Exemption Request within twenty (20) business days after receipt of such Exemption Request; provided that the failure of the Board of Directors to make a determination within such period shall be deemed to constitute the denial by the Board of Directors of the Exemption Request. The Requesting Person must respond promptly to reasonable and appropriate requests for additional information. The Board of Directors shall only grant an exemption in response to an Exemption Request if it receives a report from the Company's advisors to the effect that the acquisition of Beneficial Ownership of Common Stock by the Requesting Person does not create a significant risk of material adverse tax consequences to the Company or the Board of Directors otherwise determines in its sole discretion that the exemption is in the best interests of the Company. Any exemption granted may be granted in whole or in part, and may be subject to limitations or conditions the Board of Directors shall determine necessary or desirable to provide for the protection of the Company's NOLs. The Exemption Request shall be considered and evaluated by the independent Directors, as defined in the Plan, and the action of a majority of such Independent Directors shall be deemed to be the determination of the Board of Directors for purposes of such Exemption Request. Furthermore, the Board of Directors shall approve within ten (10) Business Days of receiving an Exemption Request as provided in the Plan of any proposed acquisition that, together with other transactions contemplated by the Board of Directors, does not cause any aggregate increase in the Beneficial Ownership of Persons with Beneficial Ownership of 4.99% or more of (i) the Common Stock then . . .