Iomega Corporation
                                 1999 Bonus Plan


The 1999 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 Chief Executive Officer,  Executive Officers and all
other vice presidents of the Corporation.

"Executive  Officer" means an executive officer within the meaning of Section 16
of the Securities Exchange Act of 1934.

"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.

2.    Bonus for Chief Executive Officer

The Chief  Executive  Officer's  target  annual bonus for 1999 shall be equal to
$600,000.

3.  Bonus for Executive Group and Key Contributors

Each  Executive  (other than the Chief  Executive  Officer) and Key  Contributor
shall be assigned a target annual bonus  expressed in dollars for Executives and
in dollars or as a percentage of base salary for all other  participants.  It is
expected  that  approximately  30  Executives  and  400  Key  Contributors  will
participate in the plan in 1999.

4.  Bonus Payment Criteria

The 1999  Plan will  utilize a  formula,  comprised  of two  performance-related
components and an individual modifier, to determine the annual payout: Corporate
Financial  Performance  (50%  weight for all  Executives  and 25-50% for all Key
Contributors),   Qualitative   Imperatives   Performance  (50%  weight  for  all
Executives  and  50-75%  weight  for all  Key  Contributors)  and an  Individual
Performance  Modifier (0 to 150% for all  Executives and Key  Contributors).  At
year-end, the Board of Directors will determine the actual percentage payout for
the Corporate Financial Performance  component,  which determination shall apply
to all participants in the Plan.

         Corporate Financial Performance - The consolidated net after-tax income
         of the Company and its subsidiaries for fiscal 1999, as reported by the
         Company in its audited  financial  statements for 1999  ("NATP"),  must
         meet a minimum  designated  by the  Board of  Directors  (the  "Minimum
         NATP") for the Corporate Financial  Performance component to be funded.
         Subject to  adjustment  under  Section 6 below:  (i) if NATP equals the
         Minimum  NATP,  the  payout  will be 100% for the  Corporate  Financial
         Performance component,  and (ii) if NATP exceeds the Minimum NATP, then
         the percentage payout for the Corporate Financial Performance component
         will be equal to NATP  divided by Minimum NATP  multiplied  by 100, and
         (iii)  if NATP is less  than  minimum  NATP,  then the  payout  for the
         Corporate Financial Performance component will be zero.

         Qualitative  Imperatives Performance - Throughout the year, performance
         against  qualitative  imperatives,  designated in writing for each Plan
         participant  will be  tracked  via  metrics  specified  for  each  such
         imperative.  The  qualitative  imperatives  will be  designated  by the
         participant's  manager  and the  Chief  Executive  Officer  or  another
         Executive Officer of the Company or, in the case of the Chief Executive
         Officer,   by  the  Board.  The  year-end  score  for  the  qualitative
         imperatives  will be determined by the Board of Directors for the Chief
         Executive Officer and


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         each Executive Officer,  and shall be determined by the Chief Executive
         Officer or his or her designee(s) for all other Plan  participants.  If
         NATP is equal to or greater than Minimum NATP,  the year-end  score for
         the Qualitative  Imperatives component of each participant's payout may
         range from 0-200%.  If NATP is less than Minimum NATP,  but is equal to
         or greater than 75% of Minimum  NATP,  then the year-end  score for the
         Qualitative  Imperatives  component  of each  participant's  payout may
         range from 0-100%.  If NATP is less than 75% of Minimum NATP,  then the
         payout on the Qualitative Imperatives component will be zero.

         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 be
         applied to the total payout under the Corporate  Financial  Performance
         and  Qualitative  Imperatives  Performance  components.  The individual
         performance  modifier  will be determined by the Board of Directors for
         purposes of the Chief Executive Officer and each Executive Officer, and
         shall  be  determined  by the  Chief  Executive  Officer  or his or her
         designee(s) for all other Plan participants.

5.     Profit Sharing Program

The quarterly financial  performance will be reviewed by the Board of Directors,
in comparison with the Company's annual operating plan and, if appropriate,  the
Board of Directors  will  authorize the Company to make profit sharing awards to
full-time  regular  employees who do not participate in any incentive bonus plan
(including this 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.

6.     Discretionary Authority

The CEO shall have the authority to allocate bonuses and profit sharing payments
payable  pursuant to the Plan among the  Executive  Group  (excepting  Executive
Officers),  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 personnel who generally are not participants
in this Plan.  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.

After reviewing the  recommendations of the Compensation  Committee of the Board
of  Directors,  the Board of  Directors  shall have the  authority  to  allocate
bonuses among the Executive  Officers,  including the authority to allocate more
or less  than  the  maximum  amount  otherwise  payable  under  the Plan if they
determine, in their discretion,  that such action is in the best interest of the
Company.