Exhibit 10.25

March 8, 2005

Ron Gillies
Via e-mail

Dear Ron:

Iomega is very pleased to
offer you the position of Vice President Sales and Business Development. In this
role, the Americas Sales organization including retail, distribution, catalog
and OEM channels, sales operations, and Business Development functions will
report to you. Your work location will be based in San Diego, California and you
will be reporting directly to me. We are excited about our future and your
contributions to Iomegas continued success and we would like your
employment to begin no later than April 4, 2005.

Your total compensation
package includes:

- A base salary that equates to $250,000 annually, paid on a bi-weekly basis.
- Participation in the Iomega Incentive Bonus Program, with an annual incentive target payment equal to 40% of your annual
           base salary, subject to the terms of the Bonus Program and for 2005 will consist of revenue and profitability
           objectives.   This program has a potential payout of up to two times target level for exceeding goals.  For the
           2005 plan year, your payout will be guaranteed at a minimum of $50,000 (gross).
- A sign-on bonus of $50,000 (gross) payable on the first payroll following your hire.
- An option to purchase 80,000 shares of Iomega stock with an exercise price equal to the Fair Market Value on your start
           date; the Fair Market Value of the stock is determined by the average of the high and low price on the day you
           begin employment. These option shares will vest in four increments, 25% on your first anniversary, 25% on your
           second anniversary, 25% on your third anniversary and 25% on your fourth anniversary.  All options are subject to
           the terms of a stock option agreement, which contains non-competition and non-solicitation provisions.
- Starting accrual rate for Personal Time Off of five weeks per year increasing to six weeks per year upon your first
           anniversary of employment.
- A relocation package that consists of $35,000 (net) relocation amount payable upon notification of move date to San Diego.
           Your relocation must be completed by September 1, 2005.
- A comprehensive basic benefits package, including medical, dental and vision plans, life and disability insurance, a 401(k)
           plan, paid time off and educational assistance, subject to the terms and conditions of those plans.
- A comprehensive executive benefits package that includes:

| | Participation in a Change of Control Agreement as approved by the Board of DirectorsExecutive Life Insurance policy with a face value of $750,000, subject to medical underwritingExecutive Short and Long-Term Disability Insurance, subject to medical underwritingExecutive Tax Planning Services provided by Price Waterhouse LLPAn annual executive physicalParticipation in the Iomega Non-qualified Deferred Compensation Plan
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Iomega Corporation o 10955 Vista Sorrento Pkwyo San Diego, CA 92130 o tel: 858-314-7000 o fax: 858-314-7001 o www.iomega.com

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March 8, 2005
Ron Gillies

If you voluntarily
terminate your employment at Iomega Corporation within one year of your hire
date, you agree to reimburse Iomega Corporation 100% of the sign on bonus and
relocation amounts received including applicable withholding taxes.

If your employment is
terminated or constructively terminated --other than for
cause as defined below--you will receive 9 months base salary
provided you have signed a separation agreement and full release.

| | Cause
means: a) A violation of law that would materially injure Iomega or materially
impact employees ability to perform for Iomega, b) A material breach of
the Iomega Code of Conduct, or non-solicitation, non-competition or
non-disclosure obligations owed by employee to Iomega, c) A material failure to
perform employees job responsibilities after being notified in writing of
the deficiency and the failure to cure such deficiency within thirty days, or c)
The commission of an act of fraud, embezzlement or crime involving moral
turpitude. Constructively terminated means: x) An adverse alteration
in the nature and status of employees job responsibilities, title or
reporting structure, y) A material reduction in employees annual base
salary, bonus plan, or any other benefit, or z) the non-voluntary relocation of
employees primary work location more than 50 miles from San Diego,
California.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The start of your
employment is contingent upon: (a) your signature on this letter, (b) your
signature on the Agreement for Employee use of Corporate Information, (c) your
review and written acknowledgment of the Iomega Employee Information Guide and
Code of Conduct (d) proof of your eligibility to work in the United States (e)
receipt by Iomega of a satisfactory background check, and (f) approval by the
Iomega Board of Directors Compensation Committee.

This offer constitutes an
at-will relationship with Iomega. This means that both you and Iomega share the
right to sever the employment relationship at any time, for any reason or no
reason, and with or without notice.

To accept this offer,
please sign and return before March 11, 2005. Please fax this signed offer
letter and Agreement for Employee Use of Corporate Information to Anna Aguirre.

If you have any questions,
please contact me on my mobile phone or Anna. Ron, I am very excited to have you
join our executive team and feel
that these terms and conditions demonstrate our commitment to you and your
career at Iomega.

Sincerely,

/s/ Werner T. Heid

Werner T. Heid
President and CEO

|/s/ Ron Gillies
Signed and Accepted | March 11, 2005
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Iomega Corporation o 10955 Vista Sorrento Pkwyo San Diego, CA 92130 o tel: 858-314-7000 o fax: 858-314-7001 o www.iomega.com