Separation and General Release Agreement

    1.  Agreement.  This Separation and General Release Agreement ("Agreement") is entered into by and between Iomega Corporation, a Delaware corporation with its principal headquarters in Roy, Utah, on behalf of itself and each of its subsidiaries ("Iomega" or the "Company"), and Anton J. Radman ("Employee" or "Mr. Radman" as appropriate) for the purpose of amicably concluding their employment relationship. By entering into this agreement neither party admits any deficiency, wrongdoing or liability, expressly or by implication. Furthermore, it is agreed that Employee is not being discharged for cause and that the separation and consulting relationship are by mutual agreement.

    2.  Separation Pay and Consulting Arrangement.  Employee and Iomega hereby agree as follows:

    (a) Employee's last regular working day in his present position shall be January 7, 2000. Employee shall be deemed a full-time employee until March 31, 2000. The effective date of Employee's termination in employment with Iomega shall be March 31, 2000 (the "Termination Date"). From January 8, 2000 through March 31, 2000, Employee shall receive the sum of $48,461.52 (based on his current annual salary) less applicable withholding to be paid bi-weekly. Additionally, Employee will receive the sum of $87,629.57 on January 28, 2000, for any accrued but unpaid vacation balances including those which will accrue during the period from January 8, 2000 to March 31, 2000, and for the Sick Reserve balance accumulated by Employee as of December 24, 1999. Current benefits will continue for Employee during this period, which benefits include: Dental coverage; Medical coverage; Life and AD&D insurance on Employee, Employee's spouse and dependents; Long term disability coverage; PTO accrual; Dependent care flexible spending account; 401K savings; Medical flexible spending account; Deferred compensation; and tax preparation and planning fees.

    (b) From January 8, 2000 through October 31, 2003, Employee shall be available to provide certain consulting and advisory services to Iomega, at Iomega's request, as set forth under the "Consulting Services Agreement" incorporated herein as Exhibit A. From April 1, 2000 through March 31, 2003, Iomega shall compensate Mr. Radman on a bi-weekly basis at an annual rate of $75,000 for consulting services up to the equivalent of thirty (30) days per year. Additionally, Iomega will offer to use Mr. Radman's services, at his option, for at least ten (10) additional days per year at a minimum compensation rate of fifteen hundred dollars ($1,500) per day. In addition, Iomega shall reimburse Mr. Radman for all reasonable and necessary business expenses incurred as the result of Iomega's request for his services. Mr. Radman's consulting services will be performed at the direction of a designated member of the Executive Staff. From April 1, 2003 through October 31, 2003, Iomega may request the use of Mr. Radman's services and Mr. Radman will make reasonable efforts to accommodate those requests, provided however, that neither party herein commits to any number of hours of service by Mr. Radman or for guaranteed compensation during this period.

    (c) Mr. Radman's vested options, and all options which vest hereafter, will continue to be exercisable for the applicable exercise period of the vested options (usually the earlier of 10 years from the date of grant or 3 months from the end of his status as an employee or consultant). Mr. Radman's unvested options shall continue to vest as set forth in the Stock Option Agreements between Mr. Radman and the Company through June 30, 2000. After June 30, 2000, one-half of Mr. Radman's unvested options shall continue to vest until the termination of his Consulting Services Agreement. Mr. Radman shall have the option to terminate the Consulting Services portion of this Agreement with 60 days written notice. Iomega's obligations to compensate Mr. Radman under this Agreement shall terminate upon such termination of the Consulting Services Agreement by Mr. Radman.


 

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