Document:

Exhibit

Exhibit 10.2

VECTRUS, INC.
SEVERANCE PLAN
(Amended and Restated as of October 6, 2015)

INTRODUCTION

Vectrus, Inc. (the “Company”) has established the Vectrus, Inc. Severance Plan (the “Plan”) effective September 27, 2014, for the benefit of its eligible U.S. salaried employees and the eligible U.S. employees of its subsidiaries (collectively, Vectrus, Inc. and its subsidiaries are referred to as the “Company”).  Non-U.S. companies shall comply with their local laws and, to the extent applicable, the Company units not subject to U.S. law shall apply the intent and provisions of this policy consistent with national and local law.

The Plan is designed to give the Company a basis to provide severance payments on a discretionary basis to certain employees whose employment is terminated by the Company other than for cause.  This document is designed to serve as both the Plan document and the summary plan description for the Plan.  The legal rights and obligations of any person having an interest in the Plan are determined solely by the provisions of the Plan, as interpreted by the Plan Administrator.
    
The Company has the sole discretion to determine whether an employee may be considered eligible for benefits under the Plan. Nothing in the Plan will be construed to give any employee the right to receive severance payments or to continue in the employment of the Company.  The Plan is unfunded, has no trustee and is administered by the Plan Administrator.  The Plan is intended to be an “employee welfare benefit plan” within the meaning of Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), 29 U.S.C. §1002(1), and 29 C.F.R. §2510.3-2(b).  Please review the section entitled “Amendment and Termination of the Plan” regarding the Company’s reservation of rights.  To the maximum extent permitted under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the Plan is intended to be a “separation pay plan” under Section 409A of the Code, in accordance with the final regulations issued thereunder and related guidance, and shall be maintained, interpreted and administered accordingly.  
    
The Plan supersedes all prior severance pay plans or practices applicable to eligible U.S. salaried employees covered by the Plan, whether formal or informal or written or unwritten, of the Company.  

Exhibit 10.2

	
					
	GENERAL INFORMATION
	 
	 
	 

	1.
	Plan Name:
	Vectrus, Inc. Severance Plan
	 

	 
	 
	 
	 
	 

	2.
	Employer/Plan Sponsor
	Vectrus, Inc.
	 
	 

	 
	 
	655 Space Center Drive
	 

	 
	 
	Colorado Springs, CO 80915
	 

	 
	 
	(719)-591-3600
	 
	 

	 
	 
	 
	 
	 

	3.
	Employer Identification Number: 
	38-3924636
	 
	 

	 
	 
	 
	 
	 

	4. 
	Type of Plan:
	Welfare Benefit - Severance Pay Plan
	 

	 
	 
	 
	 
	 

	5.
	Plan Administrator:
	Senior Vice President & Chief Human Resources Officer

	 
	 
	c/o Vectrus, Inc.
	 
	 

	 
	 
	655 Space Center Drive
	 

	 
	 
	Colorado Springs, CO 80915
	 

	 
	 
	 
	 
	 

	6.
	Agent for Service of Legal Process:
	Senior Human Resources Executive or his or her Designee.

	 
	 
	 
	 
	 

	7.
	Sources of Contribution:
	The Plan is unfunded and all benefits are paid from the general assets of the Company.

	 
	 
	 
	 
	 

	8.
	Type of Administration:
	The Plan is administered by the Plan Administrator with benefits provided in accordance with the provisions of the applicable Plan document.

	 
	 
	 
	 
	 

	9.
	Plan Year:
	The Plan's fiscal records are kept on a fiscal year basis ending December 31, 2015.

COVERAGE

All regular, active salaried executive and corporate level employees of the Company who are employed in the U.S. are eligible to participate in the Plan.  Local businesses or divisions are covered by the Plan but may have different severance payment schedules.  Individuals ineligible for coverage include (i) any person who provides service as an intern, special project employee or other temporary employee, (ii) any person whose terms and conditions of employment are determined through collective bargaining with a third party, unless the collective bargaining agreement provides for participation in the Plan, (iii) any person performing services for the Company pursuant to an arrangement with a third party leasing organization, (iv) employees who are covered under the Senior Executive Severance Pay Plan, or any individual agreement, plan, arrangement or program providing severance and (v) any person whom the Company determines, in its sole discretion, is not a common law employee.  If a person described in clauses (iii) or (v) is subsequently classified by the Company, the Internal Revenue Service or a court as an employee, such person, for purposes of the Plan, shall be deemed an employee from the actual (and not the effective) date of such classification, but shall nonetheless be ineligible for coverage under the Plan.

2

Exhibit 10.2

ELIGIBILITY

A.    When You Are Eligible

The Company may make severance payments to any employee whom the Company determines, in its sole and exclusive discretion, is an eligible employee and has incurred an involuntary termination of employment, except as specified below.  Keep in mind that severance pay is not a right accruing to any employee.  Decisions in this matter remain a prerogative of management, which will exercise its discretion in such circumstances, taking into account the interests of individuals and the business needs of the Company.
  
In order to receive any severance payment benefits, you must sign and not revoke a waiver/release, in a form provided by the Company, of all claims arising out of your employment relationship with the Company and the termination of that relationship, and you must return all Company property, including files, manuals, keys, access cards, credit cards and Company-owned equipment in your possession.  You may also be required, in the discretion of the Company, to reaffirm any covenant against disclosure and assignment of intellectual property, confidentiality, non-competition or non-disparagement agreement previously entered into and you may be required to agree to such additional terms and conditions related to the termination of the employment relationship that the Company, in its sole discretion, decides to require as a condition of receiving severance payments hereunder.  

		
	B.
	When You Are Not Eligible

Notwithstanding the foregoing, you are not eligible for severance pay in any of the following circumstances: 
		
	1.
	You voluntarily resign or voluntarily retire.

		
	2.
	You are discharged by the Company for cause as determined by the Company, in its sole and exclusive discretion, including, but not limited to, misconduct or violation of Company policies, rules or Code of Conduct.  If the Company determines, after your termination of employment, that you violated any terms or conditions relating to your employment, your severance agreement or the Company’s Code of Conduct or any policies of the Company, the Company may discontinue severance payments.

		
	3.
	Prior to or on your last day of scheduled employment, you die or experience a physical or mental condition entitling you to, disability benefits or workers compensation.

		
	4.
	You fail to return to employment following an approved leave of absence.

		
	5.
	You terminate employment as a result of a court decree.

		
	6.
	Your termination of employment is related to a corporate transaction, such as a sale or transfer of assets (including the sale of a division or business unit or any operation thereof), a sale of stock, or a stock dividend, spinoff, reorganization that results in you no longer being employed by the Company and you are (i) offered comparable employment with the acquirer or the new employer; or (ii) you are not offered comparable employment with the acquirer or new employer, but are offered a comparable  position with the Company, and you do not accept such offer of employment. The Company shall reasonably determine what constitutes comparable employment. 

		
	7.
	You receive, or are entitled to receive, severance benefits under any other severance plan, agreement or arrangement of the Company or any successor entity.  Notwithstanding any provision of the Plan to the contrary, the Company, in its sole discretion and acting as the Plan sponsor and not as a fiduciary, reserves the right (a) to amend eligibility requirements and conditions or establish additional eligibility requirements and conditions, (b) to determine whether an employee satisfies the eligibility requirements for severance benefits, (c) to award severance benefits to a terminated 

3

Exhibit 10.2

employee who is not otherwise eligible, (d) to deny benefits to an employee who is otherwise eligible, (e) to award benefits to any terminated employee in a greater or lesser amount than provided for in the Plan, or (f) to pay out benefits in a manner or on a schedule other than provided for in the Plan.  

PLAN BENEFITS

If you have been selected to receive a severance payment benefit, as determined by the Company, you may be eligible for a benefit which may be based upon your completed years of service, weekly pay and salary grade or position level, or any other factors determined to be relevant by the Company, in its sole discretion.   

Your "termination date" shall be the date on which your active service ends, i.e., your last day of active employment with the Company.

The Company may provide a fixed level or schedule of benefits in connection with any special termination program designed by the Company.  In the absence of any other determination, the aggregate amount of severance pay shall not exceed 52 weeks of weekly pay and will be determined in accordance with the attached Exhibit 1 (Executive Severance Pay Benefits, Exhibit 2 (Band B or Comparable Level Severance Pay Benefits) or Exhibit 3 (Non-Executive Severance Pay Benefits) using a tiered approach based on both your salary grade or position level and your completed years of service with the Company:

“Years of service” means the total number of your completed years of service as a full-time employee of the Company and, as applicable, with ITT Corporation and/or Exelis Inc. (or their respective affiliates).  Adjusted service dates will be used for employees who have bridged prior breaks in service, as determined by the Company.
  
“Weekly pay” means your weekly base salary rate at the time of your termination date, including regularly scheduled shift differential where applicable, and excluding overtime pay and other allowances.  

You are solely responsible for the payment of all taxes that results from your receipt of severance pay benefits.  In addition, all severance pay benefits will be subject to all applicable federal, state and local tax withholding requirements.  Severance pay benefits will be reduced by amounts provided in respect of any Worker Adjustment and Retraining Notification Act (WARN) obligation.

Severance payments will be made from the general assets of the Company.  Severance pay will be paid in installments according to your business or divisions normal payroll cycle, with the first payment, which will cover the severance pay that is payable to you within 60 days after your termination date, paid to you on the first payroll date that occurs within such 60 day period, (provided that should such 60 day period span two calendar years, such payments will commence in the second of the two calendar years) and the remaining installments, if any, of your severance pay, paid according to your business or unit’s normal payroll cycle; provided that in order for you to receive severance pay under the Plan the Company must receive an effective waiver/release and the revocation period for such release must have expired within such 60 day period.  In addition, you must return all Company property as described under “When You Are Eligible” above.

If you are receiving severance pay and are rehired by the Company, you must agree to forego any remaining severance pay beyond your rehire date.  If your employment is again terminated before prior service has been bridged, (“Bridge” describes the period when you return to work for the Company and work an amount of time equal to the time you were not with the Company) you will be eligible to receive only that portion of severance pay that was foregone and not received.

4

Exhibit 10.2

In your first paycheck following your termination date, you will be paid your accrued weekly pay which was not paid to you prior to your termination date, along with any vacation pay due at the time of your termination date in accordance with the provisions of your business or unit’s vacation policy. 
Severance pay will not be used or considered in the computation or accrual of benefits under any other benefit plan or program except to the extent explicitly permitted in such plan or program.  In the event you die before receiving all of the severance payments due to you, any remaining payments shall be paid in a lump sum to your estate.

COMPLIANCE WITH CODE SECTION 409A

The Plan is intended to comply with the requirements of Section 409A of the Code, to the extent applicable, and the Plan shall be interpreted to avoid any penalty sanctions under Section 409A of the Code.  Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with Section 409A of the Code and, if necessary, any such provision shall be deemed amended to comply with Section 409A of the Code and regulations thereunder.  All payments to be made upon a termination of employment that constitutes deferred compensation under the Plan may only be made upon a “separation from service” under Section 409A of the Code.  In no event may you, directly or indirectly, designate the calendar year of payment.  Severance payments made in the form of installments under the Plan shall be deemed ‘separate payments’ within the meaning of Section 409A of the Code. 

You are solely responsible for all taxes that may result from your receipt of the amounts payable to you under this Agreement, and neither the Company nor any of its affiliates makes or has made any representation, warranty or guarantee of any federal, state or local tax consequences to you of you receipt of any benefit or payment hereunder, including, but not limited to, under Section 409A of the Internal Revenue Code of 1986, as amended. 

To the maximum extent permitted under section 409A of the Code, the severance benefits payable under the Plan are intended to be exempt under section 409A in reliance on the “separation pay” exception under Treas. Reg. §1.409A-1(b)(9)(iii), the short-term deferral exception under Treas. Reg. §1.409A-1(b)(4), or any other applicable exception; provided, however, any amount payable to you during the six (6) month period following your termination date that does not qualify within such exception and constitutes deferred compensation subject to the requirements of section 409A of the Code, then such amounts shall hereinafter be referred to as the “Excess Amount.”  If at the time of your termination date, you are a “specified employee” (as defined in section 409A of the Code and determined in the sole discretion of the Company in accordance with the Company’s “specified employee” determination policy), then the Company shall postpone the commencement of the payment of the portion of the Excess Amount that is payable within the six (6) month period following your termination date for six (6) months following your termination date.  The delayed Excess Amount shall be paid in a lump sum to you within thirty (30) days following the date that is six (6) months following your termination date and any installments payable to you after such six (6) month period shall continue in accordance with their original schedule.  If you die during such six (6) month period and prior to the payment of the portion of the Excess Amount that is required to be delayed on account of section 409A of the Code, such Excess Amount shall be paid to your estate within sixty (60) days after your death.   

CLAIMS PROCEDURE

Adverse Benefit Determinations

If you have been determined to be eligible to receive benefits under the Plan, you may contest the administration of the benefits (but not the level of benefits) by completing and filing a written claim for reconsideration with the Plan Administrator.  If the Plan Administrator denies a claim in whole or in part, the Plan Administrator will provide notice to you, in writing, within 90 days after the claim is filed, unless the Plan Administrator determines that an extension of time for processing is required.  In the event that the Plan Administrator 

5

Exhibit 10.2

determines that such an extension is required, written notice of the extension shall be furnished to you prior to the termination of the initial 90-day period.  The extension shall not exceed a period of 90 days from the end of the initial period of time and the extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan Administrator expects to render the benefit decision.

The written notice of a denial of a claim shall set forth, in a manner calculated to be understood by you:
		
	1.
	the specific reason or reasons for the denial;

		
	2.
	reference to the specific Plan provisions on which the denial is based;

		
	3.
	a description of any additional material or information necessary for you to perfect the claim and an explanation as to why such information is necessary; and

		
	4.
	an explanation of the Plan’s claims procedure and the time limits applicable to such procedures, including a statement of your right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on appeal.

Appeal of Adverse Benefit Determinations
You or your duly authorized representative shall have an opportunity to appeal a claim denial to the Plan Administrator for a full and fair review. You or your duly authorized representative may:
		
	1.
	request a review upon written notice to the Plan Administrator within 60 days after receipt of a notice of the denial of a claim for benefits;

		
	2.
	submit written comments, documents, records, and other information relating to the claim for benefits; and

		
	3.
	examine the Plan and obtain, upon request and without charge, copies of all documents, records, and other information relevant to your claim for benefits.

The Plan Administrator’s review shall take into account all comments, documents, records, and other information submitted by you relating to the claim, without regard to whether such information was submitted or considered by the Plan Administrator in the initial benefit determination.  A determination on the review by the Plan Administrator will be made not later than 60 days after receipt of a request for review, unless the Plan Administrator determines that an extension of time for processing is required.  In the event that the Plan Administrator determines that such an extension is required, written notice of the extension shall be furnished to you prior to the termination of the initial 60-day period.  The extension shall not exceed a period of 60 days from the end of the initial period and the extension notice shall indicate the special circumstances requiring an extension of time and the date on which the Plan Administrator expects to render the determination on review.
The written determination of the Plan Administrator shall set forth, in a manner calculated to be understood by you:
		
	1.
	the specific reason or reasons for the decision;

		
	2.
	reference to the specific Plan provisions on which the decision is based; 

		
	3.
	your right to receive, upon request and without charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits; and

		
	4.
	a statement of your right to bring a civil action under section 502(a) of ERISA.

6

Exhibit 10.2

No person may bring an action for any alleged wrongful denial of Plan benefits in a court of law unless the claims procedures set forth above are exhausted and a final determination is made by the Plan Administrator.  If you or other interested person challenges a decision of the Plan Administrator, a review by the court of law will be limited to the facts, evidence and issues presented to the Plan Administrator during the claims procedure set forth above.  Facts and evidence that become known to you or other interested person after having exhausted the claims procedure must be brought to the attention of the Plan Administrator for reconsideration of the claims determination. Issues not raised with the Plan Administrator will be deemed waived.

PLAN ADMINISTRATION

The Senior Vice President and Chief Human Resources Officer or his or her designee, will be the Plan Administrator and the named fiduciary of the Plan for purposes of ERISA.  The authority and duties of the Plan Administrator are described in this section and in such charters or other documents as may be adopted from time to time.  As circumstances may require, the Company may appoint additional or substitute members of the Plan Administrator, and the Plan Administrator may, to the extent permitted by law, delegate its authority to any employee or director (or committee of employees and/or directors) of the Company to administer and interpret the Plan.  

The Plan Administrator will be the sole judge of the application and interpretation of the Plan, and will have the discretionary authority to construe the provisions of the Plan, to resolve disputed issues of fact, and to make determinations regarding eligibility for benefits (other than determinations under “Eligibility” that are reserved to the Company).  The Plan Administrator shall correct any defect, reconcile any inconsistency, or supply any omission with respect to the Plan.  The decisions of the Plan Administrator in all matters relating to the Plan that are within the scope of his/her authority (including, but not limited to, eligibility for benefits, Plan interpretations, and disputed issues of fact) will be final and binding on all parties.

ACTION BY THE COMPANY

Any action taken by the Company under the Plan shall be taken by the Plan Administrator or his or her designee.  

AMENDMENT AND TERMINATION OF THE PLAN

The Company reserves the right to amend or terminate the Plan, in whole or in part, at any time and for any reason. Such action shall be taken by the Board of Directors of the Company or its Compensation and Personnel Committee.  The authority and duties of the Compensation and Personnel Committee are described in such charters or other documents as may be adopted from time to time.  

ERISA RIGHTS STATEMENT

As a participant in the Plan, you are entitled to certain rights and protections under ERISA. ERISA provides that all Plan participants shall be entitled to:

Receive Information about Your Plan and Benefits

		
	•
	Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites, all documents governing the plan, including insurance contracts and a copy of the latest annual report (Form 5500 Series) filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.

		
	•
	Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts and copies of the latest annual report (Form 5500 Series) and updated summary plan description.  The Plan Administrator may make a reasonable charge for the copies.

7

Exhibit 10.2

Prudent Actions by Plan Fiduciaries
In addition to creating rights for Plan participants ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan.  The people who operate your Plan, called “fiduciaries” of the plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries.  No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA.
Enforce Your Rights
If your claim for a benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.
Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request materials from the plan and do not receive them within 30 days, you may file suit in a federal court.  In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator.  If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should happen that the Plan fiduciaries misuse the Plan’s money or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees.  If you are successful the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.
Assistance with Your Questions
If you have any questions about your Plan, you should contact the Plan Administrator.  If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue NW, Washington, D.C. 20210.  You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publication hotline of the Employee Benefits Security Administration.

8

Exhibit 10.2

Exhibit 1 Executive Employee Severance Pay Schedule

	
			
	Salary Grade or Comparable Level

	Severance Pay
For Less than Two Years of Completed Service

	Severance Pay
For Two or More Years of Completed Service 

Aggregate Severance Pay shall not exceed 52 weeks of weekly pay 

	19
	Twelve weeks of weekly pay

	Eleven weeks of weekly pay, plus one additional week of weekly pay for each  year of completed service 

	20
	Thirteen weeks of weekly pay

	Twelve weeks of weekly pay, plus one additional week of weekly pay for each year of completed service 

	21
	Fourteen weeks of weekly pay

	Thirteen weeks of weekly pay, plus one additional week of weekly pay for each year of completed service 

	22
	Fifteen weeks of weekly pay

	Fourteen  weeks of weekly pay, plus one additional week of weekly pay for each year of completed service 

	23
	Sixteen weeks of weekly pay

	Fifteen weeks of weekly pay, plus one additional week of weekly pay for each year of completed service 

9

Exhibit 10.2

Exhibit 2 Band B Employee or Comparable Level Severance Pay Schedule 

	
			
	Band B or Comparable Level
	Twenty-six weeks of weekly pay
	Twenty-six weeks of weekly pay if years of service is less than three, plus after three years of service, one additional week of weekly pay for each year of completed service over two years of service  
 
Aggregate Severance Pay shall not exceed 52 weeks of weekly pay 
 

10

Exhibit 10.2

Exhibit 3 Non-Executive or Comparable Level Severance Pay Schedule
Non- Executive Employee Severance Benefits 

	
			
	Salary Grade or Comparable Level

	Severance Pay
For Less than Two Years of Completed Service

	Severance Pay
For Two or More Years of Completed Service

Aggregate Severance Pay shall not exceed 52 weeks of weekly pay 

	9 through 12
	Two weeks of weekly pay

	One  weeks of weekly pay, plus one additional week of weekly pay for each year of completed service 

	13
	Three weeks of weekly pay

	Two  weeks of weekly pay, plus one additional week of weekly pay for each year of completed service 

	14
	Four weeks of weekly pay

	Three weeks of weekly pay, plus one additional week of weekly pay for each year of completed service 

	15
	Five weeks of weekly pay

	Four  weeks of weekly pay, plus one additional week of weekly pay for each year of completed service 

	16
	Six weeks of weekly pay

	Five weeks of weekly pay, plus one additional week of weekly pay for each year of completed service 

	17
	Seven weeks of weekly pay
	Six weeks of weekly pay, plus one additional week of weekly pay for each year of completed service over 

	18
	Eight weeks of weekly pay
	Seven  weeks of weekly pay, plus one additional week of weekly pay for each year of completed service 

11Exhibit

Exhibit 10.3

VECTRUS, INC.
SPECIAL SENIOR EXECUTIVE SEVERANCE PAY PLAN
(Amended and Restated as of October 6, 2015)
 
	
		
	1.
	Purpose

The purpose of this Vectrus, Inc. Special Senior Executive Severance Pay Plan (“Plan”), as amended and restated,  is to assist in occupational transition by providing Severance Benefits, as defined herein, for employees covered by the Plan whose employment is terminated under conditions set forth in the Plan. 
	
		
	2.
	Covered Employees

Covered employees under the Plan (“Special Severance Executives”) are active full-time, regular salaried employees of Vectrus and of any subsidiary company (each a “Vectrus Subsidiary”) (collectively or individually as the context requires the “Company”) (including Special Severance Executives who are short-term disabled as of a Potential Acceleration Event within the meaning of the Company’s short term disability plans) (other than Special Severance Executives on periodic severance as of a Potential Acceleration Event) who are (i) the Chief Executive Officer, (ii) executives in Band A or designated by the Committee (defined below) for participation in Band A benefits under the Plan, and (iii) Other Designated Covered Employees (defined below). 

“Band A” shall have the meaning given such term under the executive classification system of the Vectrus Human Resources Department as in effect immediately preceding an Acceleration Event (defined below). After the occurrence of an Acceleration Event, the terms “Vectrus,” “Vectrus Subsidiary” and “Company” as used herein shall also include, respectively and as the context requires, any successor company to Vectrus or any successor company to any Vectrus Subsidiary and any affiliate of any such successor company.   As of the date of the amendment and restatement of the Plan, Band A includes Senior Vice Presidents or above, but it may be further defined by the Committee at any time.
	
		
	3.
	Definitions

An “Acceleration Event” shall occur if (i) a report on Schedule 13D shall be filed with the Securities and Exchange Commission pursuant to Section 13(d) of the Securities Exchange Act of 1934 (the “Act”) disclosing that any person (within the meaning of Section 13(d) of the Act), other than Vectrus or a subsidiary of Vectrus or any employee benefit plan sponsored by Vectrus or a subsidiary of Vectrus, is the beneficial owner directly or indirectly of thirty percent (30%) or more of the outstanding Common Stock $0.01 par value, of Vectrus (the “Stock”); (ii) any person (within the meaning of Section 13(d) of the Act), other than Vectrus or a subsidiary of Vectrus, or any employee benefit plan sponsored by Vectrus or a subsidiary of Vectrus, shall purchase shares pursuant to a tender offer or exchange offer to acquire any Stock of Vectrus (or securities convertible into Stock) for cash, securities or any other consideration, provided that after consummation of the offer, the person in question is the beneficial owner (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of thirty percent (30%) or more of the outstanding Stock of Vectrus (calculated as provided in paragraph (d) of Rule 13d-3 under the Act in the case of rights to acquire Stock); (iii) the consummation of (A) any consolidation, business combination or merger involving Vectrus, other than a consolidation, business combination or merger involving Vectrus in which holders of Stock immediately prior to the consolidation, business combination or merger (x) hold fifty percent (50%) or more of the combined voting power of Vectrus (or the corporation 

1

Exhibit 10.3

resulting from the merger or consolidation or the parent of such corporation) after the merger and (y) have the same proportionate ownership of common stock of Vectrus (or the corporation resulting from the merger or consolidation or the parent of such corporation), relative to other holders of Stock immediately prior to the merger, business combination or consolidation, immediately after the merger as immediately before, or (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets of Vectrus, (iv) there shall have been a change in a majority of the members of the Board of Directors of Vectrus within a 12-month period unless the election or nomination for election by Vectrus’ stockholders of each new director during such 12-month period was approved by the vote of two-thirds of the directors then still in office who (x) were directors at the beginning of such 12-month period or (y) whose nomination for election or election as directors was recommended or approved by a majority of the directors who were directors at the beginning of such 12-month period or (v) any person (within the meaning of Section 13(d) of the Act) (other than Vectrus or any subsidiary of Vectrus or any employee benefit plan (or related trust) sponsored by Vectrus or a subsidiary of Vectrus) becomes the beneficial owner (as such term is defined in Rule 13d-3 under the Act) of thirty percent (30%) or more of the Stock.  

“Cause” shall mean the Executive’s (i) willful and continued failure to substantially perform the Executive’s duties with the Company or to substantially follow and comply with the specific and lawful directives of the Company or the Vectrus Board of Directors (the “Board”), as reasonably determined by the Board (other than any such failure resulting from the Executive’s incapacity due to physical or mental illness) after a written demand for substantial performance that specifically identifies the manner in which the Board believes that the Executive has not substantially performed his duties is delivered to the Executive by the Board; (ii) willful commission of an act of fraud or dishonesty resulting in material economic or financial injury to the Company; (iii) willful engagement in illegal conduct or gross misconduct, in either case which is materially and demonstrably injurious to the Company, (iv) material breach of the terms of any confidentiality, trade secret, non-solicitation, non-competition or similar Company agreement or policy; or (v) conviction of, or plea of nolo contendere to, a felony or crime involving moral turpitude.  

“Committee” shall mean the Compensation and Personnel Committee of the Company’s Board of Directors.

“Good Reason” shall mean without the Special Severance Executive’s express written consent and excluding for this purpose any action which is remedied by the Company or its affiliates within thirty (30) days after receipt of notice thereof given by the Special Severance Executive, (i) a reduction in the Special Severance Executive’s annual base compensation (whether or not deferred); (ii) the assignment to the Special Severance Executive of any duties inconsistent in any material respect with the Special Severance Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities; (iii) any other action by the Company or its affiliates which results in a material diminution in such position, authority, duties or responsibilities; or (iv) the Company’s (or an affiliate or any successor, as the case may be) requiring the Special Severance Executive’s work location to be other than within thirty-five (35) miles of the location where such Special Severance Executive was principally working immediately prior to the Acceleration Event;; provided that “Good Reason” shall cease to exist for an event on the 90th day following the later of its occurrence or the Special Severance Executive’s knowledge thereof, unless the Special Severance Executive has given the Company notice thereof prior to such date, and the date of the Special Severance Executive’s termination of employment for Good Reason must occur, if at all, within one hundred and eighty (180) days following the later of the occurrence of the Good Reason event or the Special Severance Executive’s knowledge thereof. 

2

Exhibit 10.3

The “Multiple” shall mean (i) for the Chief Executive Officer, two and one-half (2.5); (ii) for the Chief Financial Officer, the Chief Legal Officer and the Chief Human Resources Officer, two (2.0), (iii) for other Executives in Band A or designated as a covered employee in Band A pursuant to Section 2 hereof, one and one-half (1.5) and (iv) for Other Designated Covered Employees, one (1.0), provided that, at any time prior to an Acceleration Event,  the Committee may determine that different Multiples apply to any Special Severance Executive. 

“Other Designated Covered Employees” are such other employees of the Company who shall be designated as covered employees for participation in this Plan by the Compensation and Personnel Committee of the Company’s Board of Directors.

“Potential Acceleration Event” shall mean the execution of an agreement or the commencement of a tender offer, in either case, in respect of a transaction or event that if consummated would result in an Acceleration Event. 
	
		
	4.
	Severance Benefits Upon Termination of Employment

If a Special Severance Executive’s employment with the Company is terminated due to a Qualifying Termination, he or she shall receive the severance benefits set forth in Section 5 hereof (“Severance Benefits”). For purposes hereof, (i) a “Qualifying Termination” shall mean a termination of a Special Severance Executive’s employment with the Company either (x) by the Company without Cause (A) within the two (2) year period commencing on the date of the occurrence of an Acceleration Event or (B) prior to the occurrence of an Acceleration Event and either (1) following the public announcement of the transaction or event which ultimately results in such Acceleration Event or (2) at the request of a party to, or participant in, the transaction or event which ultimately results in an Acceleration Event; or (y) by a Special Severance Executive for Good Reason within the two (2) year period commencing with the date of the occurrence of an Acceleration Event and (ii) a determination by a Special Severance Executive that he or she has “Good Reason” hereunder shall be final and binding on the parties hereto unless the Company can establish by a preponderance of the evidence that “Good Reason” does not exist. 
	
		
	5.
	Severance Benefits

Severance Benefits for Special Severance Executives who, at the time of a Qualifying Termination, are:

 (i) the Chief Executive Officer;  

(ii)  in Band A or designated as a covered employee in Band A in accordance with Section 2 hereof; or

(iii) an Other Designated Covered Employee: 
	
				
	 
	•
	 
	Accrued Rights.  The Special Severance Executive’s base salary through the date of termination of employment, any annual bonus earned but unpaid as of the date of termination for any previously completed fiscal year, reimbursement for any unreimbursed business expenses properly incurred by the Special Severance Executive in accordance with Company policy prior to the date of the Special Severance Executive’s termination of employment and such employee benefits, if any, as to which the Special Severance Executive may be entitled under the employee benefit plans of the Company, including without limitation, the payment of any accrued or unused paid time off under the Company’s paid time off policy.

3

Exhibit 10.3

	
				
	 
	•
	 
	Severance Pay.  The sum of (x) the applicable Multiple  times the current annual base salary rate paid or in effect (whether or not deferred) with respect to the Special Severance Executive at the time of the Special Severance Executive’s termination of employment, and (y) the applicable Multiple times the target annual bonus with respect to the Special Severance Executive at the time of the Special Severance Executive’s termination of employment.

	
				
	 
	•
	 
	Health and Life Insurance Benefits

As long as the Special Severance Executive is receiving severance pay, except  as provided in this Section, the Special Severance Executive will be eligible for continued participation in those Company employee benefit plans that are COBRA eligible, and coverage will run through the COBRA period.  The Company and the Special Severance Executive will continue to share the monthly premium expense per the Plan Year’s contribution strategy approved on an annual basis.  The Special Severance Executive will not be eligible to participate in any other Company benefits plans, policies, programs and arrangements, including without limitation, any Company tax qualified retirement plans, non-qualified retirement plans, and deferred compensation plans. 

If, for any reason at any time, the Company (i) is unable to treat the Special Severance Executive as being eligible for ongoing participation in any Company benefit plans or policies in existence immediately prior to the termination of employment of the Special Severance Executive, and if, as a result thereof, the Special Severance Executive does not receive a benefit or receives a reduced benefit, or (ii) determines that ongoing participation in any such Company benefit plans or policies would result in a violation of the nondiscrimination rules of Section 105(h)(2) of the Internal Revenue Code of 1986, as amended (the “Code”) or any other Code section, statute or regulation of similar effect (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), the Company shall provide such benefits by making available equivalent benefits from other sources in a manner consistent with Section 15 below.
	
		
	6.
	Form of Payment of Severance Pay

Severance Pay shall be paid in cash, in non-discounted equal periodic installment payments corresponding to the frequency and duration of the severance payments that the Special Severance Executive would have been entitled to receive from the Company as a normal severance benefit in the absence of the occurrence of an Acceleration Event, with such terms governing the frequency and duration of the severance payments being deemed incorporated herein by reference.  If the Special Severance Executive would not have been entitled to receive any severance payments from the Company as a normal severance benefit in the absence of the occurrence of an Acceleration Event, the Severance Pay shall be paid in cash, in non-discounted equal periodic installment payments over a period of months equal to the applicable Multiple times twelve (12) months.   
	
		
	7.
	Termination of Employment — Other

The Severance Benefits shall only be payable upon a Special Severance Executive’s termination of employment due to a Qualifying Termination; provided, that if, following the occurrence of an Acceleration Event, a Special Severance Executive is terminated due to the Special Severance Executive’s death or Disability (as defined below) and, at the time of such termination, the Special Severance Executive had grounds to resign with Good Reason, such termination of employment shall be deemed to be a Qualifying Termination. 

4

Exhibit 10.3

“Disability” shall mean the complete and permanent inability of the Special Severance Executive to perform all of his or her duties under the terms of his or her employment, as determined by the Company upon the basis of such evidence, including independent medical reports and data, as the Company deems appropriate or necessary. 
	
		
	8.
	Administration of Plan; Claims and Appeals Procedures

The Plan shall be administered by the Company, who shall have the exclusive right to interpret the Plan, adopt any rules and regulations for carrying out the Plan as may be appropriate and decide any and all matters arising under the Plan, including but not limited to the right to determine appeals. Subject to applicable Federal and state law, all interpretations and decisions by Vectrus shall be final, conclusive and binding on all parties affected thereby. 

Any employee or other person who believes he or she is entitled to any payment under the Plan may submit a claim in writing to the Plan’s administrator (in accordance with Section 16) within ninety (90) days after the earlier of (i) the date the claimant learned the amount of their severance benefits under the Plan or (ii) the date the claimant learned that he or she will not be entitled to any benefits under the Plan. If the claim is denied (in full or in part), the claimant will be provided a written notice explaining the specific reasons for the denial and referring to the provisions of the Plan on which the denial is based. The notice will also describe any material or information necessary for the claimant to perfect the claim, and an explanation of why such material or information is necessary, and an explanation of the Plan’s procedures (and time limits) for appealing the denial, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on appeal. The denial notice will be provided within ninety (90) days after the claim is received. If special circumstances require an extension of time (up to ninety (90) days), written notice of the extension will be given within the initial ninety (90) day period. This notice of extension will indicate the special circumstances requiring the extension of time and the date by which the administrator expects to render its decision on the claim. 
     
If the claimant’s claim is denied, the claimant (or his or her authorized representative) may apply in writing to the administrator for a review of the decision denying the claim. Review must be requested within sixty (60) days following the date the claimant received the written notice of their claim denial or else the claimant loses the right to review. The claimant (or representative) then has the right to review and obtain copies of all documents and other information relevant to the claim, upon request and at no charge, and to submit issues and comments (as well as documents, records and other information related to the claim) in writing. The administrator will provide written notice of its decision on review within sixty (60) days after it receives a review request. If additional time (up to sixty (60) days) is needed to review the request, the claimant (or representative) will be given written notice of the reason for the delay. This notice of extension will indicate the special circumstances requiring the extension of time and the date by which the administrator expects to render its decision.
 
If the claim is denied (in full or in part), the claimant will be provided a written notice explaining the specific reasons for the denial and referring to the provisions of the Plan on which the denial is based. The notice will also include a statement that the claimant will be provided, upon request and free of charge, reasonable access to, and copies of, all documents and other information relevant to the claim and a statement regarding the claimant’s right to bring an action under Section 502(a) of ERISA. 

If the claims procedures set forth above have been exhausted and a claimant wishes to challenge a final determination by the Plan administrator, such claim shall be settled by arbitration administered by 

5

Exhibit 10.3

the American Arbitration Association under its Commercial Arbitration Rules and the entire cost thereof shall be borne by the Company. The location of the arbitration proceedings shall be reasonably acceptable to the Special Severance Executive. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The Company shall pay all legal fees, costs of litigation, prejudgment interest, and other expenses which are incurred in good faith by the Special Severance Executive as a result of the Company’s refusal to provide any of the Severance Benefits to which the Special Severance Executive becomes entitled under the Plan, or as a result of the Company’s (or any third party’s) contesting the validity, enforceability, or interpretation of the Plan, or as a result of any conflict between the Special Severance Executive and the Company pertaining to the Plan. The Company shall pay such fees and expenses from the general assets of the Company. 
	
		
	9.
	Termination or Amendment

    
Vectrus may terminate or amend the Plan (“Plan Change”) at any time except, that following the occurrence of (i) an Acceleration Event or (ii) a Potential Acceleration Event, no Plan Change that would adversely affect any Special Severance Executive may be made without the prior written consent of such Special Severance Executive affected thereby; provided, however, that (ii) above shall cease to apply if such Potential Acceleration Event does not result in the occurrence of an Acceleration Event. 
	
		
	10.
	Offset

Any Severance Benefits provided to a Special Severance Executive under the Plan shall be in lieu of, and not in addition to, any severance pay or benefits the Special Severance Executive would otherwise be entitled to receive (i) pursuant to any other Company policy, practice program or arrangement, (ii) pursuant to any Company employment agreement or other agreement with the Company, or (iii) by virtue of any law, custom or practice excluding, however, any unemployment compensation in the United States. 
	
		
	11.
	Excise Tax

In the event that it shall be determined that any Payment would constitute an “excess parachute payment” within the meaning of Section 280G of the Code, then the aggregate of all Payments shall be reduced so that the Present Value of the aggregate of all Payments does not exceed the Safe Harbor Amount; provided, however, that no such reduction shall be effected, if the Net After-tax Benefit to Special Severance Executive of receiving all of the Payments exceeds the Net After-tax Benefit to Special Severance Executive resulting from having such Payments so reduced. In the event a reduction is required pursuant hereto, the order of reduction shall be first all cash payments on a pro rata basis, then any equity compensation on a pro rata basis, and lastly medical and dental coverage. 

For purposes of this Section 11, the following terms have the following meanings: 

(i) “Net After-tax Benefit” shall mean the Present Value of a Payment net of all federal state and local income, employment and excise taxes imposed on Special Severance Executive with respect thereto, determined by applying the highest marginal rate(s) applicable to an individual for Special Severance Executive’s taxable year in which the Change in Control occurs. 

(ii) “Payment” means any payment or distribution or provision of benefits by the Company to or for the benefit of Special Severance Executive, whether paid or payable 

6

Exhibit 10.3

or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any reductions required by this Section 11. 

(iii) “Present Value” shall mean such value determined in accordance with Section 280G(d)(4) of the Code. 

(iv) “Safe Harbor Amount” shall be an amount expressed in Present Value which maximizes the aggregate Present Value of Payments without causing any Payment to be subject to excise tax under Section 4999 of the Code or the deduction limitation of Section 280G of the Code. 
 
All determinations required to be made under this Section 11, including whether and when a reduction is required and the amount of such reduction and the assumptions to be utilized in arriving at such determination, shall be made by a nationally recognized accounting firm mutually agreed to by the Special Severance Executive and the Company (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and the Special Severance Executive within ten (10) business days of the receipt of notice from the Special Severance Executive that there has been a Payment, or such earlier time as is requested by the Company; provided that for purposes of determining the amount of any reduction, the Special Severance Executive shall be deemed to pay federal income tax at the highest marginal rates applicable to individuals in the calendar year in which any such payment is required to be made. 

All fees and expenses of the Accounting Firm shall be borne solely by the Company. If the Accounting Firm determines that no excise tax is payable by the Special Severance Executive, it shall so indicate to the Special Severance Executive in writing. Any determination by the Accounting Firm shall be binding upon the Company and the Special Severance Executive. 
	
		
	12.
	Miscellaneous

The Special Severance Executive shall not be entitled to any notice of termination or pay in lieu thereof. 

Severance Benefits under the Plan are paid entirely by the Company from its general assets. 

The Plan is not a contract of employment, does not guarantee the Special Severance Executive employment for any specified period and does not limit the right of the Company to terminate the employment of the Special Severance Executive at any time. 

If a Special Severance Executive should die while any amount is still payable to the Special Severance Executive hereunder had the Special Severance Executive continued to live, all such amounts shall be paid in accordance with the Plan to the Special Severance Executive’s designated heirs or, in the absence of such designation, to the Special Severance Executive’s estate. 

The numbered section headings contained in the Plan are included solely for convenience of reference and shall not in any way affect the meaning of any provision of the Plan. 

If, for any reason, any one or more of the provisions or part of a provision contained in the Plan shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of the Plan not held so invalid, 

7

Exhibit 10.3

illegal or unenforceable, and each other provision or part of a provision shall to the full extent consistent with law remain in full force and effect. 
 
The Plan shall be governed by and construed in accordance with the laws of the State of New York without regard to the conflicts of laws provisions thereof. 

The Plan shall be binding on all successors and assigns of the Vectrus and a Special Severance Executive. 
	
		
	13.
	Notices

Any notice and all other communication provided for in the Plan shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three (3) days after it has been mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt. 

If to the Company: 
Vectrus, Inc.
655 Space Center Drive
Colorado Springs, Colorado 80915
Attention: Chief Legal Officer

If to Special Severance Executive: 
To the most recent address of Special Severance Executive set forth in the personnel records of the Company. 
	
		
	14.
	Adoption Date

The Plan was initially adopted by Vectrus on September 27, 2014 (“Adoption Date”) and does not apply to any termination of employment which occurred or which was communicated to the Special Severance Executive prior to the Adoption Date. The Plan was amended and restated on October 6, 2015.
	
		
	15.
	Section 409A

The Plan is intended to comply with Section 409A of the Code (or an applicable exemption therefrom) and will be interpreted in a manner consistent with such intent. Notwithstanding anything herein to the contrary, (i) if at the time of the Special Severance Executive’s termination of employment with the Company the Special Severance Executive is a “specified employee” as defined in Section 409A of the Code (and any related regulations or other pronouncements thereunder) and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Special Severance Executive) until the date that is six months following the Special Severance Executive’s termination of employment with the Company (or the earliest date as is permitted under Section 409A of the Code), at which point all payments deferred pursuant to this Section 15 shall be paid to the Special Severance Executive in a lump sum and (ii) if any other payments of money or other benefits due hereunder could cause the application of an accelerated or additional tax under Section 409A 

8

Exhibit 10.3

of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by the Company, that does not cause such an accelerated or additional tax. To the extent any reimbursements or in-kind benefits due under the Plan constitute “deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv), the terms of which shall be deemed incorporated herein by reference. Notwithstanding the definition of Acceleration Event contained herein, where required to avoid additional tax under Section 409A, the event constituting an Acceleration Event must also be an event described in Treas. Reg. Section 1.409A-3(i)(5). All payments to be made upon a termination of employment that constitute deferred compensation under the Plan may only be made upon a “separation from service” (as that term is used in Section 409A). Each payment made under the Plan shall be designated as a “separate payment” within the meaning of Section 409A of the Code. The Company shall consult with Special Severance Executives in good faith regarding the implementation of the provisions of this section; provided that neither the Company nor any of its employees or representatives shall have any liability to Special Severance Executives with respect thereto.

9

Exhibit 10.3

	
		
	16.
	Additional Information

	
					
	Plan Name:
	Vectrus, Inc. Special Senior Executive Severance Pay Plan

	 
	 
	 
	 
	 

	Plan Sponsor:
	Vectrus, Inc.
	 
	 
	 

	 
	655 Space Center Drive
	 
	 

	 
	Colorado Springs, CO 80915
	 
	 

	 
	 
	 
	 
	 

	Employer Identification Number:
	38-3924636
	 
	 
	 

	 
	 
	 
	 
	 

	Plan Year:
	Vectrus' Fiscal Year
	 
	 
	 

	 
	 
	 
	 
	 

	Plan Administrator
	Vectrus, Inc.
	 
	 
	 

	 
	Attention: Administrator of the Vectrus, Inc. Special Senior Executive Pay Plan

	 
	655 Space Center Drive
	 

	 
	Colorado Springs, CO 80915
	 

	 
	(719) 591-3600
	 
	 
	 

	 
	 
	 
	 
	 

	Agent for Service of Legal Process:
	Vectrus, Inc.
	 
	 
	 

	 
	Attention: SVP, Chief Legal Officer and Corporate Secretary

	 
	655 Space Center Drive
	 
	 

	 
	Colorado Springs, CO 80915
	 
	 

	 
	(719) 591-3600
	 
	 
	 

	 
	 
	 
	 
	 

	 
	Service of process may also be made upon the Plan administrator.

	 
	 
	 
	 
	 

	Type of Plan:
	Employee Welfare Benefit Plan - Severance Pay Plan.
	 

	 
	 
	 
	 
	 

	Plan Costs:
	The cost of the Plan is paid by Vectrus, Inc.
	 

	
		
	17.
	Statement of ERISA Rights

As participants in the Plan, Special Senior Executives have the following rights and protections under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”): 
     
		
	•
	Special Senior Executives may examine, without charge, at the Plan administrator’s office and at other specified locations, such as worksites, all documents governing the plan, including insurance contracts and a copy of the latest annual report (Form 5500 Series) filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration; and

		
	•
	Special Senior Executives may obtain, upon written request to the Plan administrator, copies of documents governing the operation of the Plan, including insurance contracts and copies of the 

10

Exhibit 10.3

latest annual report (Form 5500 Series) and updated summary plan description. The Plan administrator may make a reasonable charge for the copies.

In addition to creating rights for participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate the Plan (called “fiduciaries”) have a duty to do so prudently and in the interests of Plan participants. No one, including Vectrus or any other person, may fire a Plan participant or otherwise discriminate against a Plan participant in any way to prevent the participant from obtaining a benefit under the Plan or exercising rights under ERISA. If a claim for a severance benefit is denied, in whole or in part, the person seeking benefits must receive a written explanation of the reason for the denial. Plan participants have the right to have the denial of the claim reviewed. (The claim review procedure is explained in Section 8 above.) 

Under ERISA, there are steps Plan participants can take to enforce the above rights. For instance, if a Plan participant requests materials and does not receive them within thirty (30) days, the Participant may file suit in a federal court. In such a case, the court may require the Administrator to provide the materials and to pay the Plan participant up to $110 a day until the participant receives the materials, unless the materials were not sent because of reasons beyond the control of the Administrator. If a Plan participant has a claim which is denied or ignored, in whole or in part, the participant may file suit in a federal court. If it should happen that the participant is discriminated against for asserting his or her rights, the participant may seek assistance from the U.S. Department of Labor, or the participant may file suit in a federal court. 

In any case, the court will decide who will pay court costs and legal fees. If the Plan participant is successful, the court may order the person the Plan participant sued to pay these costs and fees. If the Plan participant loses, unless the Plan requires Vectrus to pay the costs, the court may order the Plan participant to pay these costs and fees, for example, if it finds that the Participant’s claim is frivolous. 

If the Plan participant has any questions regarding the Plan, the participant should contact the Plan administrator (see Section 16 for the contract in formation). If the Plan participant has any questions about this statement or about his or her rights under ERISA, the Plan participant may contact the nearest area office of the Employee Benefits Security Administration (formerly the Pension and Welfare Benefits Administration), U.S. Department of Labor, listed in his or her telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W. Washington, D.C. 20210. The Plan participant may also obtain certain publications about his or her rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.
 

11

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