Exhibit 10.77
THERMO ELECTRON CORPORATION
Supplemental LTD Plan
Key Plan Design Features
Program Description
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The Thermo Electron Supplemental Long Term Disability Benefit is a disability
benefit designed to supplement the coverage you receive under Thermo Electron's
basic long-term disability program. The basic program provides a monthly benefit
of 60% of base salary to a monthly maximum benefit of $10,000. The supplemental
plan enhances your disability benefit by providing a monthly benefit of 60% of
total compensation to an additional $10,000 monthly maximum benefit, for a
combined monthly maximum of $20,000 between the basic and supplemental plans.
The plan is funded through individual disability policies and the coverage is
fully paid by the company. Other key features of the plan are summarized below:
Design Feature Plan Design
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Eligibility: Active, full-time employees earning a specific
level of base salary
Enrollment: Upon hire
Eligible Compensation/ Base salary plus incentive bonuses and employer
Total Compensation: matching contribution under the 401(k) plan
Benefit: 60% of total compensation to a monthly maximum
benefit of $10,000
Changes in Benefit: Each year, your benefit amount under the plan
will increase (or decrease) as your eligible
compensation increases (or decreases). A rider
to reflect a change in supplemental benefit is
issued after April 1 salary changes are
recorded.
Definition of Disability: Inability to perform the substantial and
material duties of your own occupation and not
working in any other gainful occupation for the
duration of the disability.
Partial Disability: Proportionate benefits are payable to age 65 if
you return to part-time active employment on
your physician's advice, but continue to suffer
a decreased level of earnings.
Recovery Benefits: Proportionate benefits are payable to age 65 if
you return to full-time active employment on
your physician's advice, but continue to suffer
a decreased level of earnings.
Mental/Nervous Drug or Benefits are payable to age 65, regardless of
Alcohol: whether confined to a hospital/institution.
Elimination Period: Benefits begin after 180 days of disability.
Benefit Period: Benefits are payable to age 65 (or longer if
disability occurs after age 61).
Guaranteed Contractual Terms: Once you are approved for coverage, Provident
Life Insurance Company cannot change your policy
provisions.
Guaranteed Premiums: Your monthly premiums are guaranteed until age
65.
Tax-Free Benefit: As the cost for this coverage is paid for by
the company, any disability benefit you receive
under this plan will be taxable income. In
order to make your disability payments tax-
free, Thermo Electron can include the premium
amounts in your year-end W2 statement. To elect
this option, you must complete the appropriate
section of the Application Cover Sheet.
Guaranteed Issue Coverage: Your policy will be issued to you on a
guaranteed issue basis (i.e., regardless of
your current health status or medical history).
Termination of Benefit: Your coverage under the plan terminates
effective as of your last day of active
employment with the company.
Portability: Your policy is fully portable (i.e., the
coverage does not end if you leave the
company).
This is a brief description of the key policy Features. See the actual policy
for specific provisions.