Retirement / Resignation Agreement - Krispy Kreme Doughnut Corp. and Scott A. Livengood
April 12, 1994
Mr. Scott A. Livengood
President
Krispy Kreme Doughnut Corporation
P O Box 83
Winston-Salem, NC 27102-0083
Dear Scott:
The purpose of this letter is to confirm our commitment to you in the event of
your retirement or resignation from full time employment with Krispy Kreme
within a period of five years from the date hereof. In consideration of your
valuable contributions to Krispy Kreme, we are pleased to make this commitment
upon your retirement as a full time employee of Krispy Kreme and resignation
from full time employment with Krispy Kreme.
OPTION TO DEVELOP AREA
We will enter into a development agreement with you for the franchise
development of an area for markets with a potential for 10 or more stores:
Development Period: A number of years determined by multiplying
the number of doughnut shops to be developed
(to be mutually agreed upon) by one
Development Schedule: One doughnut shop per year.
Territory: To be elected by you within one year of the
date of this letter (excluding New York,
Chicago, Los Angeles and San Francisco and
any markets for which development rights
are granted prior to your election and
within such one year period.)
Franchise Agreement: The franchise agreement and terms then being
offered to new franchisees.
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Mr. Scott A. Livengood
April 12, 1994
Page 2
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Financing: We will enter into a "pioneer" arrangement
for the first Krispy Kreme Express similar
to the current pioneer plan.
This commitment was approved by the board of directors on April 12, 1994.
Please indicate your agreement by signing below.
KRISPY KREME DOUGHNUT CORPORATION
/s/ J. A. McAleer, Jr.
J. A. McAleer, Jr.
Chairman of the Board and
Chief Executive Officer
Agreed to
/s/ Scott A. Livengood
Scott A. Livengood
Dated: April 19, 1994
<PAGE> 3
June 11, 1996
Mr. Scott A. Livengood
President
Krispy Kreme Doughnut Corporation
P.O. Box 83
Winston-Salem, NC 27102
Dear Scott:
The purpose of this letter is to confirm changes to a letter of commitment to
you dated April 12, 1994. This original letter granted you the option to develop
certain areas in the event of your retirement or resignation from full time
employment with Krispy Kreme. Pursuant to a Board of Directors resolution dated
April 25, 1996, the following changes are made to the attached letter:
Territory Elected: You have elected Alamance, Durham and Orange Counties
in the State of North Carolina; the entire state of
Colorado.
Development Period: 5 years from the date of the Board of Directors'
resolution. You may begin to develop the territories
while still employed at Krispy Kreme Doughnut
Corporation, i.e., you do not have to wait until
retirement or resignation.
Franchise Agreement: The franchise agreement and terms then being offered
to new franchisees.
Other Arrangements: You are allowed to take advantage of the benefits as
outlined in the "Kingsmill" agreement.
Please indicate your agreement by signing below.
Krispy Kreme Doughnut Corporation
/s/ J. A. McAleer, Jr.
J.A. McAleer, Jr.
Chairman of the Board and Chief Executive Officer
Agreed to:
/s/ Scott A. Livengood
Scott A. Livengood
Dated: 7/22/96