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Exhibit 10.18    
  

September 14,
2001 

Mahmoud
Mostafa

Via email 

Dear
Mahmoud: 

Iomega
is very pleased to offer you our Executive Vice President, Research, Development and Operations position and look forward to you joining our team. We are excited about our future and your
contributions to our continued success. You will be reporting directly to me and your work location shall be San Diego, California. Our offer includes an annual base salary of $350,000 paid on a
bi-weekly basis. The Compensation Committee of the Board of Directors will review your salary after 12 months of employment. We would like your employment to begin on
October 1, 2001. 

Your
compensation package also includes: 

	•
	Participation
in the Iomega Incentive Bonus Program, with an annual incentive target payment equal to 65% of your annual salary, subject to the terms of the
Bonus Program. 100% bonus pay-out (pro-rated from your date of employment) is guaranteed for fiscal year 2001.

	•
	A
sign-on bonus of $150,000 (less all applicable taxes) payable on the first payroll date after date of hire.

	•
	A
comprehensive benefits package, including medical, dental, life and disability coverage, annual executive physical, a 401(k) plan, paid time off and
educational assistance, subject to the terms and conditions of those plans.

	•
	An
option to purchase 500,000 shares (pre-reverse stock split, based on capitalization prior to September 28th, 2001) 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.
Additional vesting terms are covered in the severance section below. You will also be eligible for additional stock option grants on an annual basis subject to board of directors' approval. The
amount of these grants is dependent on factors such as shares outstanding, the individual's level in company and job performance. Historically, all current outstanding share levels, annual option
grants for this level of position have ranged between 70,000 and 100,000 shares (pre-reverse stock split, based on capitalization prior to September 28th, 2001). All
options are subject to the terms of a stock option agreement, which contains non-competition and non-solicitation provisions.

	•
	3
weeks PTO based on our current PTO policy. (The vacation policy is being re-defined and once it is approved, your vacation will be based on the
new policy. We will guarantee you the equivalent of three weeks vacation and one week of convertible sick time.)

	•
	Participation
in the Executive Life Insurance Program at two times your annual base salary, subject to medical underwriting.

	•
	Participation
in the Executive Long-Term Disability Program.

	•
	Participation
in the Executive Tax Planning Services provided by Price Waterhouse LLP.

	•
	Participation
in the Iomega Non-qualified Deferred Compensation Plan.

	•
	Participation
in a Change of Control Agreement as approved by the Board of Directors. 

1

 

	•
	If
your employment is terminated or "constructively terminated" - other than for "cause" - you will receive severance according to the following schedule
provided you have signed a separation agreement and full release. 

Severance Pay (comprised of base salary and target bonus amount at time of severance event)  

	Timing of severance event
 
	 	Severance Amount

	Prior to 9/30/02	 	10 months
	Between 10/1/02 & 9/30/03	 	11 months
	After 10/1/03	 	12 months

Vesting of Initial Stock Option Grant  

	Timing of severance event
 
	 	Total # Shares of Initial Stock Grant to vest upon severance

event (inclusive of standard vesting schedule)

	Prior to 9/30/02	 	125,000
	Between 10/1/02 & 9/30/03	 	250,000
	Between 10/1/02 & 9/30/04	 	375,000
	After 10/1/04	 	500,000

"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
non-solicitation, non-competition or non-disclosure obligations owed by employee to Iomega, 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 or reporting structure, y) A material
reduction in employee's annual base salary, bonus plan, or any other benefit, or c) the relocation of employee's primary work location more than 25 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, and (c) proof of
your eligibility to work in the United States and (d) receipt by Iomega of a satisfactory background check. 

This
offer for a position 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 September 17, 2001. Please fax this signed offer letter, Application, Employee/Applicant Authorization, and Agreement for Employee Use of
Corporate Information to our Anna Aguirre at (858) 546,4771. If you have any questions, please contact me at (858) 546-4799. 

I
look forward to you joining the Iomega team! 

	Sincerely,	 	 
	/s/ Werner T. Heid
 Werner T. Heid

President and CEO	 	 
	

/s/ Mahmoud Mostafa
 Signed and Accepted	
 	

9/14/01
 Date

2

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Exhibit 10.18QuickLinks
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Exhibit 10.19    
  

	July 23, 2001	 	Hand Deliver

Thomas
Kampfer 

Dear
Thomas: 

Iomega
is very pleased to offer you our Vice President, E-Business, General Counsel & Secretary position and look forward to you joining our team. We are excited about our future
and your contributions to our continued success. You will be reporting directly to Werner Heid at our Corporate Headquarters. Our offer includes an annual base salary of $245,000 paid on a
bi-weekly basis. We would like your employment to begin on July 24, 2001. 

Your
compensation package also includes: 

	•
	Participation
in the Iomega Incentive Bonus Program, with an annual incentive target payment equal to 45% of your annual salary, subject to the terms of the
Bonus Program. 100% bonus pay-out (pro-rated from your date of employment) is guaranteed for fiscal year 2001.

	•
	A
comprehensive benefits package, including medical, dental, life and disability coverage, a 401(k) plan, paid time off and educational assistance,
subject to the terms and conditions of those plans.

	•
	An
option to purchase 210,000 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. These options are subject to the terms of a stock option agreement, which contains non-competition and
non-solicitation provisions.

	•
	3
weeks PTO based on our current PTO policy. (The vacation policy is being re-defined and once it is approved, your vacation will be based on the
new policy. We will guarantee you the equivalent of three weeks vacation and one week of convertible sick time.)

	•
	Participation
in the Executive Life Insurance Program at two times your annual base salary, subject to medical underwriting.

	•
	Participation
in the Executive Long-Term Disability Program.

	•
	Participation
in the Executive Tax Planning Services provided by Price Waterhouse LLP.

	•
	Participation
in the Iomega Non-qualified Deferred Compensation Plan.

	•
	Reimbursement
for family travel, to and from Utah once per month, and temporary living expenses during restructuring assignment.

	•
	Participation
in a Change of Control Agreement as approved by the Board of Directors.

	•
	If
your employment is terminated or "constructively terminated"—other than for "cause"—you will receive 9 months severance,
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 non-solicitation, non-competition or non-disclosure obligations owed by employee to Iomega, 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 

1

 

responsibilities
or reporting structure, y) A material reduction in employee's annual base salary, bonus plan, or any other benefit, or c) the relocation of employee's primary work
location more than 25 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, and (c) proof of
your eligibility to work in the United States and (d) receipt by Iomega of a satisfactory background check. 

This
offer for a position 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 July 23, 2001. Please fax this signed offer letter, Application, Employee/Applicant Authorization, and Agreement for Employee Use of
Corporate Information to our recruiting department at (801) 332-3671. If you have any questions, please contact me at (801) 332-4678. 

I
look forward to you joining the Iomega team! 

	Sincerely,	 	 
	

/s/ Werner T. Heid
 Werner T. Heid

President and CEO	
 	

 
	

/s/ Thomas D. Kampfer
 Signed and Accepted	
 	

7/24/01
 Date

WH/cm,
(req# 01-4687) 

Enclosures

	1.
	New
Employee Packets 

2

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Exhibit 10.19

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