Definition of 1.8 Compensation. The word

1.8 Compensation. The word Compensation” means the total of all amounts paid by the Employer to or for the benefit of a Participant for services rendered by the Participant during the applicable Plan Year which is subject to withholding of Federal income tax for the Plan Year (or which would have been subject to such withholding if the Participant were a citizen of the United States) prior to reduction for 401(k) Contributions made with respect to such Plan Year pursuant to Section 3.1, except: (i) deferred compensation (other than 401(k) Contributions made pursuant to Section 3.1) or contributions to any other retirement, pension or profit sharing plan or trust, stock options and any gain or income attributable thereto, (ii) contributions by an Employee to an arrangement maintained by an Employer pursuant to Code Section 125; (iii) prior to January 1, 1999, fifteen percent (15%) of Compensation paid to a sales person employed on a commission basis where such Compensation is subject in full to withholding for Federal income tax and includes expense allowances and expense reimbursements, and (iv) any compensation which would not be subject to such withholding but for a voluntary withholding agreement between the Employer and the Employee. Notwithstanding the foregoing, “Compensation” with respect to Plan Years commencing on or after January 1, 1989, and ending December 31, 1993, shall be limited to $200,000 (as adjusted under Code Section 415(d)), and for Plan Years commencing on or after January 1, 1994, “Compensation” shall be limited to $150,000 (as adjusted under Code Section 415(d)).