Iomega Corporation
                                 1998 Bonus Plan

The 1998 Bonus Plan ("Plan") for the Chief  Executive  Officer,  Executive Group
and Key Contributors of Iomega Corporation (the "Company") is as follows:

1.    Definitions

For purposes of the Plan, the following terms shall have the following meanings:

"Executive  Group" means the senior executives of the Company listed in Appendix
A and such additional  executives as the Chief Executive  Officer of the Company
("CEO") shall designate.

"Executives" means the members of the Executive Group.

"Key    Contributors"    means    employees    who   perform    management    or
management-equivalent  duties  and  responsibilities,   who  are  designated  to
participate in the Plan based on their  performance and their  contributions  to
the Company.

"Gross  Salary" means the gross salary (before bonus) paid during fiscal 1998 to
salary-based employees of the Company.

2.    Bonus for Chief Executive Officer

The Chief Executive Officer's incentive target shall be at the discretion of the
Board  of  Directors,  generally  based  upon  the  same  (financial/operational
excellence) criteria as other Executive participants.

3.  Bonus for Executive Group and Key Contributors

Each Executive and Key Contributor shall be assigned a target annual bonus which
shall be a percentage of his/her Gross Salary. It is expected that approximately
30 Executives and 400 Key Contributors will participate in the plan in 1998.

The 1998 Plan will  utilize a formula,  comprised  of three  performance-related
components to determine the annual payout:  Program Financial Performance (50%),
Operational  Excellence Performance (50%) and an Individual Performance Modifier
(up to 150%).  At year-end,  the Board of Directors  will  determine  the actual
percentage  payout for both the Program  Financial  Performance  and Operational
Excellence  Performance.   These  percentages  will  be  used  to  determine  an
individuals actual payout.

         PROGRAM  FINANCIAL  PERFORMANCE  - The  Company's  year  end  financial
         performance  in  relation  to  financial  goals will be reviewed by the
         Board of Directors and if appropriate, program payouts will be made.

         OPERATIONAL EXCELLENCE PERFORMANCE - Throughout the year, the following
         initiatives  will be tracked via metrics and the year end score will be
         determined by the Board of Directors ranging from 0 to 200%. This score
         will apply to all participants in the plan. The Operational  Excellence
         score will be based on five key initiative areas which will make up 50%
         of an individual's total target bonus and will generally be split 75% /
         25% into the two categories indicated below:

         75%      WARRANTY -  product/service  quality,  customer  satisfaction,
                  product  recall,  stop  shipments  
                  ASSET  MANAGEMENT  -  sales forecast,  cycle time  /  build to
                  order, capital asset requests, information integrity
                  PLC  COMPLIANCE - gates  passed,  engineering  change  notices
                  processed, prd definition, concurrent engineering Organization
                  BUILDING - key hires, communications,  training/certification,
                  critical turnover.

         25%      Six Sigma  -  results per  project, leadership, certification,
                  average projects

         INDIVIDUAL   PERFORMANCE   MODIFIER   -  In  order  to  better  tie  an
         individual's   performance  to  the  Plan,  an  individual  performance
         modifier will be utilized.  The  individual  modifier  scores can range
         from 0 to 150%. The individual  performance modifier score will only be
         applied to the  Operational  Excellence  Performance  Component  of Key
         Contributor  Participants  in  the  Plan.  The  individual  performance
         modifier will not apply to Executive Group participants.

3.    Profit Sharing Program

The quarterly  financial  performance of Iomega will be reviewed by the Board of
Directors  and if  appropriate,  the Company may make profit  sharing  awards to
full-time  regular  employees who do not participate in any incentive bonus plan
or sales commission plan. Profit sharing awards, if made, will generally be paid
quarterly on the basis of achievement  of specified  quarterly  results.  Profit
sharing  payments are targeted at 5% of a participating  employee's Gross Salary
and the maximum  payment  percentage  shall not exceed  7.5% of a  participating
employee's Gross Salary.


4.    CEO's Discretionary Authority

The CEO shall have the authority to allocate bonuses and profit sharing payments
payable  pursuant to the Plan among the Executive  Group,  Key  Contributors and
Company  employees  participating in the Profit Sharing  Program,  including the
authority to allocate  more or less than the maximum  amount  otherwise  payable
under  the Plan if he or she  determines,  in his or her  discretion,  that such
action is in the best interest of the Company.

The  CEO  is  also  authorized  to pay a  discretionary  bonus  up to a  maximum
aggregate  amount  of  $2.0  million  to  professional  personnel  who  are  not
participants  in the Key  Contributor  Program and "Spot  Awards"  primarily  to
employees  who are not  classified  as  executives  under  the  Plan as  special
recognition  for  outstanding  performance.  These awards will be limited if the
Company does not perform profitably. The CEO shall report quarterly to the Board
of  Directors  and the  Compensation  Committee  the  aggregate  amounts  of any
discretionary bonuses awarded for outstanding performance.