Severance Agreement and General Release


1.   This Severance Agreement and General Release  ("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 Kim B. Edwards  ("Edwards")
     for the purposes of amicably concluding their employment  relationship.  By
     entering  into  this  agreement   neither  party  admits  any   deficiency,
     wrongdoing or liability, expressly or by implication.

2.   Edwards and Iomega hereby agree as follows:

     (1)  Edwards  ceased  to  serve  as an  executive  officer  of the  Company
          effective  March 24, 1998 upon his  resignation as President and Chief
          Executive Officer of the Company. Edwards will cease to be employed by
          the Company effective April 15, 1998 (the "Termination Date").

     (2)  On the Termination  Date, Iomega will pay Edwards a lump-sum amount of
          $500,000,  less any required and authorized payroll deductions and any
          applicable withholding requirements.  Such payment represents Edwards'
          compensation  as an employee  for the period from March 24, 1998 until
          the Termination Date and a severance allowance.

     (3)  Until  March 25,  1999,  Iomega will  continue to provide  healthcare,
          dental,  optical and insurance benefits (to the extent permitted under
          the  applicable   policies)  to  Edwards  and  his  family  which  are
          substantially  equivalent  to those being  provided to Edwards and his
          family  as of March  24,  1998;  provided,  however,  that if  Edwards
          becomes  employed prior to March 25, 1999 and is eligible to receive a
          particular type of benefits (e.g.,  healthcare)  from his new employer
          on terms substantially as favorable to Edwards and his family as those
          being  provided by the  Company,  then the Company  shall no longer be
          required  to provide  those  particular  benefits  to Edwards  and his
          family.

     (4)  Until  the  earlier  of  (i)  the  date  on  which  Edwards  commences
          employment with another  employer or (ii) March 25, 1999,  Iomega will
          provide  Edwards with the following  outplacement  and  administrative
          support  services:  (1)  continued  use of the home  computer,  laptop
          computer  and home fax machine  previously  provided to Edwards by the
          Company; (2) continued use of Edwards' current  Company-provided  cell
          phone and AT&T phone  credit  card for  Iomega and job search  related
          calls  with  Iomega  to pay  the  charges;  (3)  continued  use of the
          Company's  voice mail and e-mail  systems in  accordance  with Company
          policies; (4) office supplies, postage and limited secretarial support
          to  be   coordinated   by   Juanita   Kosoff  or   another   executive
          administrative  assistant designated by the Company; (5) continued use
          of Edwards'  corporate  American Express card,  provided Edwards shall
          have full and exclusive  responsibility for the payment of all charges
          made  to  the  card;  (6)  reimbursement  of  up  to  $10,000  of  job
          search-related   transportation   expenses  not   reimbursed   by  the
          prospective employer;  and (7) subscriptions sent to Edwards' home for
          the  periodicals  previously  identified  by Edwards  to the  Company.
          Edwards shall promptly notify Iomega upon  commencing  employment with
          another employer.

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     (5)  Except as otherwise  provided in this  Agreement,  no bonuses or other
          incentive   compensation   will  be  due  or  paid  to  Edwards.   All
          unreimbursed  travel  and  business  expenses  for  which  Edwards  is
          entitled to  reimbursement as of the Termination Date will be promptly
          paid to Edwards after submission of expense reports in accordance with
          standard Iomega policy.

     (6)  Edwards   acknowledges   and  agrees  that  under  the  terms  of  any
          outstanding stock option agreement(s) between Edwards and the Company,
          the vesting of any options to purchase shares of the Company's  Common
          Stock granted to Edwards will cease as of the  Termination  Date,  and
          Edwards has a period of three months  following the  Termination  Date
          within  which to  exercise  any  options  which were  vested as of the
          Termination  Date. Any options not exercised  within said  three-month
          period shall expire and thereafter not be exercisable.

     (7)  On the Termination  Date,  Iomega shall issue to Edwards 40,000 shares
          of Common  Stock  (representing  one-half of the total number of share
          remaining  unissued  under  Edwards'  1995  bonus  arrangement)  at  a
          purchase  price  per share  equal to par  value.  Edwards  may pay the
          aggregate  purchase  price of  $1,333  (40,000 x 0.03a)  and  required
          withholding  taxes with respect to such 40,000 shares by  surrendering
          to Iomega  shares of Common  Stock having a fair market value equal to
          the purchase price and withholding taxes. Edwards acknowledges that he
          shall  have no right to  receive  the other  40,000  shares  remaining
          unissued under his 1995 bonus arrangement.

     (8)  On the  Termination  Date,  Iomega shall loan $5,000,000 to Edwards on
          the terms set forth in the form of Secured  Promissory  Note  attached
          hereto as  Exhibit  A. No  proceeds  from  such loan  shall be used by
          Edwards  to pay the  exercise  price of any  stock  options.  Edwards'
          obligations  under the Promissory Note shall be secured  pursuant to a
          Pledge Agreement in the form attached hereto as Exhibit B.

     (9)  Edwards and Iomega shall,  simultaneously  with the execution  hereof,
          and  as  a  condition  to  the  effectiveness  hereof,  enter  into  a
          Non-Competition  and  Non-Recruitment  Agreement in the form  attached
          hereto as Exhibit C.

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     (10) All amounts paid to Edwards  hereunder will be subject to any required
          and  authorized  payroll  deductions  and any  applicable  withholding
          requirements.

3.   Edwards  may elect  optional  health  insurance  continuation  under  COBRA
     following the Termination Date at Edwards' expense. Procedures for electing
     to continue  such  benefits will be provided  under  separate  cover by the
     Human Resources Department.

4.   Edwards  acknowledges  that the  payments  and  benefits  described in this
     Agreement  exceed  any  amount to which  Edwards  would be  entitled  under
     Iomega's standard  policies,  procedures and benefit programs and that such
     payments and benefits are in lieu of any amounts to which he may  otherwise
     have been entitled to receive  pursuant to a certain letter agreement dated
     November  29,  1993,  which  letter  agreement  is  hereby  terminated.  In
     consideration  for entering  into this  Agreement  and for the payments and
     benefits  described herein, and subject to the terms and conditions of this
     Agreement,  (i)  Iomega  Corporation,  its  subsidiaries  and each of their
     respective officers, directors,  successors and assigns, hereby release and
     forever discharge Edwards,  his heirs, legal  representatives,  estates and
     successors in interest and (ii) Edwards, his heirs, legal  representatives,
     estates and  successors in interest  hereby  release and forever  discharge
     Iomega Corporation, its subsidiaries and each of their respective officers,
     directors,  employees,  successors  and  assigns  from any and all  claims,
     demands,  obligations and causes of action of any and every kind,  known or
     unknown,  which the releasing parties may have against the released parties
     as of the  date and time of  signing  this  Agreement  which  arise  out of
     Edwards'  employment  by  Iomega  or the  termination  of that  employment,
     including without limitation all wrongful  discharge  actions;  all actions
     arising under the Americans with  Disabilities  Act, 42 U.S.C.,  ' 12101 et
     seq., the Age  Discrimination  in Employment Act, 29 U.S.C., ' 621 et seq.,
     Title VII of the Civil Rights Act of 1964, 42 U.S.C.  ' 2000e et seq.,  and
     the Utah  Anti-Discrimination  Act, Utah Code Ann '34-35-1,  et seq. or any
     other federal or state statute  which may be held  applicable;  all actions
     for breach of contract or the covenant of good faith and fair dealing;  all
     tort  claims;  and any and all claims  for  compensation,  wages,  bonuses,
     severance pay,  commissions,  vacation pay, or reimbursement  for expenses,
     attorneys'  fees and costs,  except for  claims for  workers'  compensation
     insurance  benefits.   Notwithstanding  the  foregoing,   nothing  in  this
     Agreement  shall be  construed  as a waiver or release of rights to enforce
     the  provisions  of this  Agreement  (including  the  exhibits  referred to
     herein).

     THIS MEANS THAT BY SIGNING THIS AGREEMENT,  EACH PARTY WILL HAVE WAIVED ANY
     RIGHT TO BRING A LAWSUIT AGAINST THE OTHER PARTY BASED ON ANY ACTIONS TAKEN
     BY ANY OF THEM UP TO THE DATE AND TIME OF SIGNING THIS AGREEMENT,  AND THAT
     THE PARTIES  WILL HAVE  RELEASED  EACH OTHER FROM ANY AND ALL CLAIMS OF ANY
     NATURE RELATING TO EDWARDS' EMPLOYMENT,  ARISING UP TO THE DATE AND TIME OF
     SIGNING THIS AGREEMENT.

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     The parties  acknowledge  that this is a full and final  release,  and that
     they intend and expressly agree that it shall be effective as a bar to each
     and every  claim,  demand and cause of action  each party has  against  the
     other  party as of the date of this  Agreement  with  respect  to  Edwards'
     employment with the Company.

5.   Iomega  acknowledges  and agrees that the  Indemnification  Agreement dated
     January 1, 1994 between  Iomega and the Employee shall remain in full force
     and effect in  accordance  with its  terms.  Edwards  agrees to  reasonably
     cooperate  with and  assist  Iomega in matters  relating  to, or arising in
     connection  with, any pending or future  litigation in which the Company is
     or may become involved.

6.   Edwards  understands and  acknowledges  his continuing  obligations  toward
     Iomega under the non-disclosure agreement he previously executed, a copy of
     which is attached hereto as Exhibit D ("Nondisclosure Agreement").  Edwards
     further agrees that any and all information obtained by or disclosed to him
     at any time during his employment  with Iomega which is not generally known
     outside of Iomega on an  unrestricted  basis,  including but not limited to
     information   concerning   Iomega's  products,   research  and  development
     projects, customers,  prospects, discounts, unreleased products, methods of
     operation,  processes, practices, programs and procedures, are confidential
     and proprietary to Iomega and subject to protection under the Nondisclosure
     Agreement and under applicable law. Edwards expressly acknowledges that the
     Company  is  prepared  to  vigorously  enforce  these  promises,  and  that
     violation of this  provision  could result in the assessment of damages and
     other legal remedies against him and any of his subsequent  employers.  Any
     breach by Edwards of this provision  shall result in the immediate  release
     of the  Company  from  any  obligations  it may  have  to  provide  further
     payments,  or benefits under this  Agreement,  or any agreement  referenced
     herein, except as may be required by applicable law.

7.   In the event  Edwards fails to return to Iomega any Company  property,  the
     Company shall have the right to offset  against  payments or benefits owing
     to Edwards  hereunder the replacement  value of any and all such unreturned
     property.  Edwards  shall have the right to  purchase  from the Company the
     home  computer,  laptop  computer,  home fax  machine  and other  equipment
     previously  provided to him by the Company at a purchase price equal to the
     depreciated book value of such equipment.

8.   As further mutual consideration for this Agreement,  the parties agree that
     each party  shall bear the cost of,  and shall be  responsible  for its own
     attorneys' and accountants'  fees and costs, if any, in connection with the
     negotiation and execution of this Agreement.

9.   Edwards  acknowledges that he has full  responsibility  for compliance with
     all applicable obligations  (including,  but not limited to, all applicable
     reporting  obligations)  under  the  Securities  Exchange  Act of 1934,  as
     amended, and all regulations  thereunder,  and any other applicable federal
     and state  securities  laws and agrees to make all required  filings and to
     furnish the Company with any information the Company may reasonably request
     to satisfy its  obligations  under the Securities  Exchange Act of 1934, as
     amended, and all regulations  thereunder,  and any other applicable federal
     and state securities laws.

<PAGE>

10.  This  Agreement  shall be governed by and construed in accordance  with the
     law of the State of Utah.

11.  The parties agree that any dispute of any kind whatsoever  arising from the
     subject matter of this Agreement, including claims regarding this Agreement
     (other than claims for workers' compensation  benefits),  shall be resolved
     under the following procedure:

     (1)  The party  claiming to be  aggrieved  shall  furnish the other  party,
          within fifteen (15) days of the disputed action,  a written  statement
          of the grievance  identifying  any witnesses or documents that support
          the  grievance  and the  relief  requested  or  proposed.  Edwards  is
          required to furnish the written  statement  of  grievance  to Iomega's
          General Counsel.

     (2)  If the  grievance is denied,  the parties agree that the dispute shall
          be  resolved  by final and binding  arbitration.  A single  arbitrator
          shall be mutually  selected by the  parties.  If no  agreement  on the
          selection  is  reached  within  fifteen  (15)  days,  then  a  neutral
          arbitrator  shall be selected  under the Expedited  Labor  Arbitration
          Rules  of  the  American  Arbitration  Association,  except  that  the
          arbitrator  shall be selected by  alternately  striking names from the
          panel of five (5) neutral labor or employment  arbitrators  designated
          by the American Arbitration Association. The arbitrator shall have the
          authority to grant the requested relief if authorized by law provided,
          however, that nothing herein shall limit the right of Iomega to obtain
          injunctive  relief in a court of competent  jurisdiction  to prevent a
          violation of the Nondisclosure  Agreement or the  Non-Competition  and
          Non-Solicitation Agreement.

     (3)  Arbitration  shall be  exclusive  and  final  remedy  for any  dispute
          between the parties,  and the parties  agree that no dispute  shall be
          submitted to arbitration  where the party claiming to be aggrieved has
          not complied with the preliminary steps provided for above.

12.  This Agreement  (including the exhibits referred to herein) constitutes the
     entire  understanding  of the parties with  respect to the subject  hereof.
     Edwards  warrants  that  he:  (a)  has  read  and  fully  understands  this
     Agreement; (b) has had the opportunity to consult with legal counsel of his
     own choosing and have the terms of this Agreement fully  explained;  (c) is
     not executing this  Agreement in reliance on any promises,  representations
     or inducements other than those contained herein; and (d) is executing this
     Agreement voluntarily, free of any duress or coercion.

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I understand this document and have been given ample opportunity to consult with
someone whose opinion I trust before signing it. By my signature, I agree to the
terms set forth above.


Date:  April 15, 1998               /s/ Kim B. Edwards
                                            Kim B. Edwards


Date:  April 15, 1998               IOMEGA CORPORATION

                              By: /s/ David J. Dunn
                                 Name: David J. Dunn
                                 Title:Chairman of the Board


Exhibit A -       Secured Promissory Note
Exhibit B -       Pledge Agreement
Exhibit C -       Non-Competition and Non-Recruitment Agreement
Exhibit D -       Nondisclosure Agreement