**Exhibit 10.36**

 

**Separation Agreement and General Release**

 

 

1.    **Agreement**.  This Separation Agreement and General Release (“Agreement”) is entered into by and between Iomega International, S.A., a Swiss company with its registered office at 12 Avenue des Morgines, 1213 Petit Lancy, Switzerland on behalf of itself and each of its subsidiaries (“Iomega” or the “Company”), and Ulrike Tegtmeier, Managing Director (“Employee”) 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. In particular Iomega does not admit to owing any further salary payments to Employee as of July 1, 2006.

Employee and Iomega hereby agree as follows:

2.          **Termination**.   Employee’s last regular working day at Iomega and the effective date of Employee’s termination of employment with Iomega will be June 30, 2006 (the “Termination Date”).  As of the Termination Date, all payments and benefits which Employee is or would be entitled to receive in connection with her employment at Iomega (other than amounts then accrued and owing) shall cease at that time. Employee shall receive on June 30, 2006, payment in lieu of vacation accrued to the end of her employment period.

3.          **Bonuses and Expenses.** No unearned bonuses or other incentive compensation will be due to Employee.  Employee shall prepare any expense reports for open expenses for the current year in relation with un-reimbursed travel and business expenses to which Employee is entitled to reimbursement which have or will occur until the end of her contractual duties set for the Termination Date and shall submit such expense reports with full back-up material to the Company not later than July 14, 2006. The Company will reimburse Employee such expenses in accordance with standard Iomega policy. All amounts paid to Employee hereunder will be net of all required and authorized payroll deductions.  If any expenses are necessary in order for Employee to provide the assistance referred to in subsection (b) above,Iomega will reimburse any and all reasonable, pre-approved expenses such as necessary travel expenses, overnight mail charges, etc.  Iomega does not desire or expect Employee to suffer any personal out-of-pocket costs for helping Iomega with resolution of pending litigation or issues.

4.          **Stock Options.**Employee acknowledges and agrees that under the terms of the outstanding stock option agreements between Employee and Iomega, the vesting of any options to purchase Company stock granted to Employee will cease as of the Termination Date, and Employee has a period of three months following the Termination Date within which to exercise any vested options.  Any options not exercised within said three-month period shall expire and thereafter not be exercisable.

 

| 5. | **Outplacement Services**. |
|----|----------------------------|

Employee shall receive personalized outplacement services with Performance Development Partners SA (“PDP”) in Geneva, Switzerland for a period of six (6) months.  

| 6. | **Job Duties and Objectives.** |
|----|--------------------------------|

(a)        During the period from the date of this Agreement through May 2006, Employee shall continue to work on a full-time basis; in June 2006, she shall work on a half-time basis with PTO to accrue at half the normal rate of accrual during the month of June; she shall assist as needed with 

 

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