Common use of Forfeitures Clause in Contracts

Forfeitures. (a) If a Participant terminates employment with the Employer and the value of the Participant's vested account balance derived from Employer and Employee contributions (other than accumulated deductible employee contributions) is not greater than $3,500, the Employee shall receive a distribution of the value of the entire vested portion of such account balance, and the nonvested portion will be treated as a forfeiture. For purposes of this Section 7.4, if the value of a Participant's vested account balance is zero, the Participant shall be deemed to have received a distribution of such vested account balance. A Participant's vested account balance shall not include Voluntary Tax-Deductible Contributions for Plan Years beginning before January 1, 1989.