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                                                                   EXHIBIT 10.34

October 29, 1999

Carl Mount
1062 Hedgecroft Place
San Jose, CA  95120

Dear Carl:

         We are pleased to offer you the position of Vice President of
Manufacturing and Purchasing for Diedrich Coffee. This is a critical position
with our Company that will take responsibility for the total operation of our
northern California roasting plant and drive all of our continuing manufacturing
and purchasing efforts. Current concepts include Diedrich Coffee, Gloria Jean's,
Coffee People and Coffee Plantation.

Our offer is as follows:

o   Base salary - $2,692.31 per week (paid on a bi-weekly basis) which equates
    to $140,000 annually at the completion of one full year of employment

o   Incentive/Bonus plan - You will be eligible to participate in our vice
    presidents incentive plan, up to 25% of your annual base salary, which is
    paid based upon achievement of fiscal year budgeted income targets for the
    company and the successful completion of mutually agreed on individual
    objectives. Because your employment will not span our full fiscal year, we
    will prorate any award based on the amount of fiscal year remaining as you
    come on board.

o   Stock Options - The Company will issue you options to purchase 20,000 shares
    of Diedrich Coffee. The strike price of the shares will be the price of the
    shares on the day the Board approves the shares for issue. Options vest over
    3 years at a rate of 33% per year. This benefit is subject to Board
    approval.

o   Signing bonus - a lump sum payment of $19,000, less applicable withholdings,
    will be made within your initial 30 days of employment.

o   Vacation - Based on your experience, you will be entitled to 3 weeks of
    vacation

o   Benefits - You will participate in the company's executive benefits plan. A
    copy is attached. The benefit program may be modified from time to time.

o   401(k) participation based on current eligibility criteria.

o   Employment at will - you may resign at any time and Diedrich Coffee may
    terminate at any time, with or without cause or notice.

o   Termination not for cause - Should your employment be terminated for reasons
    other than cause (cause meaning willful misconduct, repeated failure to
    perform duties, fraud or dishonesty, felonious, or criminal acts), you will
    be entitled to a one-time payment equal to six month's salary.

o   Position reports directly to Tim Ryan - Chief Executive Officer of Diedrich
    Coffee.

o   Start date on of before November 15, 1999.

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We look forward to your early response as part of our team and feel you will
enjoy the Monterey peninsula as a great place to work. Please confirm your
acceptance of this offer by signing and returning an executed copy to Matt
Kimble.

Very truly yours,

/s/ TIM RYAN
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Tim Ryan
Chief Executive Officer, Diedrich Coffee

I accept the position of Vice President of Manufacturing and Purchasing,
Diedrich Coffee on the above terms and conditions.

/s/ CARL MOUNT
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Carl Mount                                  Date<PAGE>   1

                                                                   EXHIBIT 10.35

February 28, 2000

Joe Caruso
2017 East Village Oak Lane
Sandy, UT  84092

Dear Joe:

         We are pleased to offer you the position of Vice President of
Franchising for Diedrich Coffee. The position will drive all franchising efforts
for the Diedrich Coffee concept. As you know, we are currently the second
largest specialty coffee company in the United States with plans to expand
significantly in the near future. We view this as a growth position and a unique
opportunity to help create something really special.

Our offer is as follows:

o   BASE SALARY - $2,307.69 per week (paid on a bi-weekly basis) which equates
    to $120,000 annually at the completion of one full year of employment. Wages
    are reviewed annually as anniversary dates are reached.

o   INCENTIVE/BONUS PLAN - current plan pays 15% of the initial area development
    fee and $1,000 per store as full size franchisee stores open.
    Non-traditional sites, carts, kiosks and international sites will be
    discussed as opportunities present themselves. Awards become payable upon
    receipt of initial area development fees or the opening of a given location.
    The plan is not intended to pay for work completed by others (e.g. you do
    the deal - you receive the reward). In order to be eligible for payment you
    must be employed when the payment is due.

o   STOCK OPTIONS - The Company will issue you options to purchase 20,000 shares
    of Diedrich Coffee. The strike price of the shares will be the trailing 5
    day average of the price of the shares from the day you begin employment.
    These options vest over 3 years at a rate of 33% per year. The Board reviews
    issuance of additional stock options annually.

o   SIGNING BONUS - a lump sum payment of $10,000, less applicable withholdings,
    will be made within your initial 30 days of employment. Should you
    voluntarily leave the Company within 12 months from the effective date of
    employment, for any reason, you will be responsible for repaying the Company
    this bonus on a prorated basis.

o   VACATION - Based on your experience, you will be entitled to 2 weeks of
    vacation.

o   BENEFITS - You will participate in the company's executive benefits plan. A
    copy is attached. The benefit program may be modified from time to time.

o   401(K) PARTICIPATION based on current eligibility criteria

o   RELOCATION - The Company will pay for all reasonable relocation expenses to
    the Irvine area (e.g. house hunting (2 trips), real estate fees,
    professional movers, closing costs, agreed on duplicate living expenses, 1.5
    points on new loan origination, license/hook-up fees etc.). Additionally,
    the Company will address tax implications associated with the relocation.
    Should you voluntarily leave the Company within 12 months from the effective
    date of employment, for any reason, you will be responsible for repaying the
    Company this reimbursement on a prorated basis.

o   TEMPORARY HOUSING - the company will pay reasonable expenses to temporarily
    housing for you during your transition up to a maximum of 4 months. This is
    to be reviewed if necessary after 90 days. The Company will consider
    reasonable extension as necessary.

o   EMPLOYMENT AT WILL - you may resign at any time and Diedrich Coffee may
    terminate at any time, with or without cause or notice.

o   TERMINATION NOT FOR CAUSE - Should your employment be terminated for reasons
    other than cause (cause meaning willful misconduct, repeated failure to
    perform duties, fraud or dishonesty, felonious, or criminal acts), you will
    be entitled to a one-time payment equal to six month's salary.

o   POSITION REPORTS directly to the Chief Executive Officer of Diedrich Coffee

o   START DATE on or before April 17, 2000.

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We look forward to your early response as part of our team and feel you will
enjoy Orange County as a great place to work and live. Please confirm your
acceptance of this offer by signing and returning an executed copy to Matt
Kimble.

Very truly yours,

/s/ TIM RYAN
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Tim Ryan
Chief Executive Officer

I accept the position of Vice President of Franchising, Diedrich Coffee on the
above terms and conditions.

/s/ JOE CARUSO
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Joe Caruso                                  Date<PAGE>   1

                                                                   EXHIBIT 10.36

May 5, 2000

Ed Apffel
Diedrich Coffee
Irvine, CA

Dear Ed:

         We are pleased to offer you the position of Vice President of Wholesale
Operations for Diedrich Coffee. The position will drive all wholesale efforts
for the entire Company. As you know, we are currently the second largest
specialty coffee company in the United States with plans to expand significantly
in the near future. We view this as a growth position and a unique opportunity
to help create something really special.

Our offer is as follows:

o   BASE SALARY - $2,115.38 per week (paid on a bi-weekly basis) which equates
    to $110,000 annually at the completion of one full year of employment. Wages
    are reviewed annually as anniversary dates are reached.

o   INCENTIVE/BONUS PLAN - plan pays 1.0% of total Wholesale EBITDA revenue when
    90% of the EBITDA plan is met, 1.5% when 95% of the plan is met, 3.0% of
    EBITDA revenues when 100% of the plan ($957,404) is met, if the plan is
    exceeded by more than 5% you will receive 4.0% of total Wholesale EBITDA
    revenues. This bonus plan is subject to eligibility criteria including the
    achievement of the agreed on gross profit goal of 18%. In order to be
    eligible for payment you must be employed when the payment is due.

o   STOCK OPTIONS - The Company will issue you options to purchase an additional
    15,000 shares of Diedrich Coffee. The strike price of the shares will be the
    trailing 5 day average of the price of the shares from the day you were
    promoted. These options vest over 3 years at a rate of 33% per year. The
    Board reviews issuance of additional stock options annually.

o   VACATION - You will continue on the current Company vacation plan.

o   WELLNESS - You will participate in the company's executive wellness plan.
    Which means you will be reimbursed 100% of the initiation fee and monthly
    dues to an approved Health Club membership.

o   BENEFITS - You will continue on your current benefits plan.

o   EMPLOYMENT AT WILL - You may resign at any time and Diedrich Coffee may
    terminate at any time, with or without cause or notice.

o   TERMINATION NOT FOR CAUSE - Should your employment be terminated for reasons
    other than cause (cause meaning willful misconduct, repeated failure to
    perform duties, fraud or dishonesty, felonious, or criminal acts), you will
    be entitled to a one-time payment equal to six month's salary.

o   POSITION REPORTS directly to the Chief Executive Officer of Diedrich Coffee

o   START DATE - May 4, 2000.

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We have been impressed with your accomplishments and look forward to you raising
the bar as we grow Diedrich Coffee. Please confirm your acceptance of this offer
by signing and returning an executed copy to Matt Kimble.

Very truly yours,

/s/ TIM RYAN
------------------------------------
Tim Ryan
Chief Executive Officer

I accept the position of Vice President of Wholesale Operations on the above
terms and conditions.

------------------------------------        ------------------------------------
Ed Apffel                                   Date

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