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If our operations of Krispy Kreme doughnut shop becomes a failure, then we will have to terminate our franchise agreement

with the Krispy Kreme Doughnut Corporation. Prior to terminating our agreement we will have to give the corporation a thirty (30) days written notice. Once that has been taken care of, we will have to pay off any fee that is still owed to Krispy Kreme Doughnut, and whatever the amount is will have to be paid off with in fifteen (15) days after the effective date of termination or expiration of the agreement. The fees can consist of royalties, marketing and promotion fund contributions, amounts owed for purchases from Krispy Kreme, or any other amount that is unpaid. Upon termination of our agreement, within the next two (2) years we will not be able to start any competitive business at the Site; within twenty-five (25) miles of the Site; or within five (5) miles of any other Krispy Kreme Store that is in operation or under construction. Also we agree that we will cease to use any of our confidential information in any business, and will return all copies of the operations manual and any other confidential materials that have loaned to us.

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