IOMEGA CORPORATION
                              1821 West 4000 south
                                 Roy, Utah 84067

                                 March 25, 1998


Mr. James E. Sierk
Henderson, Nevada 89011

Dear Jim:

     This  letter  will  serve  as  the  agreement  between  Iomega  Corporation
("Iomega") and you regarding the following:

          1. Effective  March 24, 1998, you will serve as Interim  President and
     Chief  Executive  Officer of Iomega.  You will serve in that capacity until
     the  earlier  of (a) the date that  Iomega  employs  a new Chief  Executive
     Officer or (b) March 25, 1999.

          2. In consideration of your services, Iomega agrees to the following:

               (a) Initial Shares.  Effective March 25, 1998,  Iomega will issue
          to you (from its  treasury)  that number of shares of common  stock of
          Iomega ("Initial Shares") equal to the quotient of $360,000 divided by
          the closing  price of the common stock of Iomega  ("Iomega  Stock") on
          the New York Stock Exchange ("Exchange") on March 25, 1998.

               (b)  Monthly  Shares.  On October 25, 1998 and on the 25th day of
          each of the succeeding five months  thereafter (each such 25th day, an
          "Award  Date"),  Iomega  will  issue to you (from its  treasury)  that
          number  of  shares of Iomega  Stock  ("Monthly  Shares")  equal to the
          quotient of $60,000  divided by the closing  price of Iomega  Stock on
          the Exchange on the applicable  Award Date,  provided,  however,  that
          each  award of  Monthly  Shares  shall be  subject  to your  continued
          service,  on the applicable Award Date, as Interim President and Chief
          Executive  Officer of Iomega.  Iomega's  obligation  to issue  Monthly
          Shares to you on each Award Date  shall  terminate  from and after the
          date that you cease serving as Interim  President and Chief  Executive
          Officer  of  Iomega   (whether   such   cessation   is   voluntary  or
          involuntary).  In the event you cease serving as Interim President and
          Chief  Executive  Officer of Iomega  between the 25th day of one month
          and the 25th day of the  succeeding  month,  you will be entitled to a
          prorata  portion of the shares that you would have otherwise  received
          had you continued to serve for the entire monthly period, such prorata
          portion to be determined by multiplying $60,000 by a fraction of which
          the  numerator is the number of days served during that period and the
          denominator  is 30, and the "Award Date" for this purpose shall be the
          date that you cease serving as Interim  President and Chief  Executive
          Officer.
<PAGE>


Mr. James E. Sierk
March 25, 1998
Page 2

               (c) Initial Option Grant.  Effective March 25, 1998,  Iomega will
          grant to you a  non-statutory  stock option for the purchase of 50,000
          shares of Iomega  Stock  pursuant to the terms of Iomega's  1997 Stock
          Incentive  Plan ("Initial  Option  Grant")  exercisable at a price per
          share equal to the closing  price of the Iomega  Stock on the Exchange
          on March 25,  1998.  The Initial  Option Grant may be exercised by you
          after, but not prior to, March 25, 1999.

               (d) Monthly  Option Grant.  On April 25, 1998 and on the 25th day
          of each of the  succeeding  eleven months  thereafter  (each such 25th
          day, an "Option  Grant Date"),  Iomega will grant you a  non-statutory
          stock  option  for the  purchase  of  7,500  shares  of  Iomega  Stock
          ("Monthly Option Grant"), provided,  however, that each Monthly Option
          Grant shall be subject to your  continued  service,  on the applicable
          Option Grant Date, as Interim President and Chief Executive Officer of
          Iomega.  Each such option  shall be  exercisable  at a price per share
          equal to the  closing  price of Iomega  Stock on the  Exchange  on the
          applicable  Option  Grant  Date.  Each  Monthly  Option  Grant  may be
          exercised  by  you  after,  but  not  before,  the  expiration  of the
          twelve-month  period  following  the  applicable  Option  Grant  Date.
          Iomega's obligation to grant you a Monthly Option Grant on each Option
          Grant Date shall  terminate  from and after the date you cease serving
          as Interim  President and Chief  Executive  Officer of Iomega (whether
          such  cessation is voluntary or  involuntary).  In the event you cease
          serving as Interim  President  and Chief  Executive  Officer of Iomega
          between  the 25th day of one month and the 25th day of the  succeeding
          month, you will be entitled to a prorata portion of the Monthly Option
          Grant that you would have  otherwise  received  had you  continued  to
          serve for the  entire  monthly  period,  such  prorata  portion  to be
          determined by  multiplying  7,500 by a fraction of which the numerator
          is the number of days served during that period and the denominator is
          30, and the  "Option  Grant Date" for this  purpose  shall be the date
          that you cease  serving  as  Interim  President  and  Chief  Executive
          Officer.

          3. In the event that you are continuing to serve as Interim  President
     and Chief Executive Officer on March 25, 1999, Iomega agrees that you shall
     be entitled to participate in the Iomega  Executive Bonus Plan,  based upon
     the performance of Iomega for the last three quarters of 1998 and the first
     quarter of 1999.

          4. If  required,  Iomega  agrees to register  for resale the shares of
     Iomega  Stock  issued  pursuant to Section  2(a) and 2(b) under the federal
     securities laws.



<PAGE>


Mr. James E. Sierk
March 25, 1998
Page 3

     If this letter  accurately  sets forth the terms and  provisions  regarding
your service as Interim  President and Chief Executive  Office,  please sign the
duplicate  copy of this  letter and return it to me,  whereupon  (i) this letter
will constitute a binding  agreement between Iomega and you and (ii) Iomega will
deliver to you a  certificate  for the Initial  Restricted  Shares  described in
Section 2(a) and a stock option agreement for the Initial Option Grant described
in Section 2(c).

                                                     Very truly yours,

AGREED AND ACCEPTED                                  IOMEGA CORPORATION

/s/ James E. Sierk                                   By /s/ David J. Dunn
James E. Sierk                                       David J. Dunn
                                                     Chairman of the Board