Document:

EX-10.2

 Exhibit 10.2 
 Vera Bradley, Inc. 
 2010 Equity and Incentive Plan

 FISCAL 2014 OUTSIDE DIRECTOR RESTRICTED STOCK UNIT 

TERMS AND CONDITIONS 
 1. Definitions. Any term capitalized herein but not defined will have the meaning set forth in the Vera Bradley, Inc. 2010 Equity and Incentive Plan (the “Plan”). 

2. Grant and Vesting of Restricted Stock Units. 

(a) As of the grant date specified in the letter that accompanies this document (the “Grant Date”), the
Participant will be credited with the number of Restricted Stock Units set forth in the letter that accompanies this document. Each Restricted Stock Unit is a notional amount that represents one unvested share of Common Stock. Each Restricted Stock
Unit constitutes the right, subject to the terms and conditions of the Plan and this document, to the distribution of a Share if and when the Restricted Stock Unit vests. 

(b) Restricted Stock Units will vest on the first anniversaries of the Grant Date. If the Participant’s Service with
the Company and all of its Affiliates terminates before the date that all of the Restricted Stock Units vest, his or her right to receive the Shares underlying such unvested Restricted Stock Units will be only as provided in Section 4.

 3. Rights as a Stockholder. 
 (a) Unless and until a Restricted Stock Unit has vested and the Share underlying it has been distributed to the Participant, the Participant will not be entitled to vote in respect of that Restricted
Stock Unit or that Share. 
 (b) If the Company declares a cash dividend on its Shares, then, on the payment date of the
dividend, the Participant will be credited with dividend equivalents equal to the amount of cash dividend per Share multiplied by the number of outstanding Restricted Stock Units credited to the Participant through the record date. The dollar amount
credited to a Participant under the preceding sentence will be credited to an account (“Account”) established for the Participant for bookkeeping purposes only on the books of the Company. The amounts credited to the Account will be
credited as of the last day of each month with interest, compounded monthly, until the amount credited to the Account is paid to the Participant. The rate of interest credited under the previous sentence will be the prime rate of interest as
reported by the Midwest edition of the Wall Street Journal for the second business day of each fiscal quarter on an annual basis. The balance in the Account will be subject to the same terms regarding vesting and forfeiture as the Participant’s
Restricted Stock Units or awarded under the applicable Award Agreement, and will be paid in cash in a single sum at the time that the Shares associated with the Participant’s Restricted Stock Units are delivered (or forfeited at the time that
the Participant’s Restricted Stock Units are forfeited). 

 4. Termination of Service; Change in Control. A Participant’s right to receive
the Shares underlying his or her Restricted Stock Units after termination of his or her Service will be only as provided in this Section. If a Participant’s Service is terminated due to the Participant’s death or Disability, the
Participant (or his or her estate) will be immediately entitled to receive the Shares underlying all of the Restricted Stock Units that have not yet vested under Section 2 above. If a Participant’s Service is terminated for any other
reason, the Participant will forfeit the right to receive Shares underlying under Restricted Stock Units that have not yet vested. Notwithstanding anything to the contrary herein, all previously unvested Restricted Stock Units then outstanding will
vest immediately upon the occurrence of a Change in Control. 
 For purposes hereof, a “Change in Control” shall mean
the occurrence of any one or more of the following: (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Exchange Act and the rules of the Securities and Exchange
Commission as in effect on the date of this Award), other than (i) Barbara Baekgaard, Patricia Miller, Michael Ray and Kim Colby and their respective heirs and descendants and any trust established for the benefit of such Persons, (ii) the
Company or a corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, or (iii) any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Affiliate, of securities of the Company representing more than twenty-five percent (25%) of the combined voting power of the Company’s then outstanding securities; (b) the occupation of a majority of
the seats (other than vacant seats) on the Board by Persons who where neither (i) nominated by the Board nor (ii) appointed by directors so nominated; or (c) the consummation of (i) an agreement for the sale or disposition of all
or substantially all of the Company’s assets, or (ii) a merger, consolidation or reorganization of the Company with or involving any other corporation, other than a merger, consolidation or reorganization that results in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the combined voting
power of the voting securities of the Company (or such surviving entity) outstanding immediately after such merger, consolidation or reorganization. 
 5. Timing and Form of Payment. Except as provided in this Section or in clauses 2(b) or Section 4, once a Restricted Stock Unit vests, the Participant will be entitled to receive a Share in
its place. Delivery of the Share will be made, including delivery with respect to a Disabled Participant, or to the estate of a deceased Participant, as soon as administratively feasible after its associated Restricted Stock Unit vests. Shares will
be credited to an account established for the benefit of the Participant with the Company’s administrative agent. The Participant will have full legal and beneficial ownership with respect to the Shares at that time. 

6. Assignment and Transfers. The Participant may not assign, encumber or transfer any of his or her rights and interests under the
Award described in this document, except, in the event of his or her death, by will or the laws of descent and distribution. 

7. Withholding Tax. The Company and any Affiliate will have the right to retain Shares or cash that are distributable to the
Participant hereunder to the extent necessary to satisfy any withholding taxes, whether federal or state, triggered by the distribution of Shares or cash pursuant to the Award reflected in this document. 

  
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 8. Securities Law Requirements. 

(a) The Restricted Stock Units are subject to the further requirement that, if at any time the Committee determines in its sole discretion
that the listing or qualification of the Shares subject to the Restricted Stock Units under any securities exchange requirements or under any applicable law, or the consent or approval of any governmental regulatory body, is necessary as a condition
of, or in connection with, the issuance of Shares under it, then Shares will not be issued under the Restricted Stock Units, unless the necessary listing, qualification, consent or approval has been effected or obtained free of any conditions not
acceptable to the Committee. 
 (b) No person who acquires Shares pursuant to the Award reflected in this document may, during
any period of time during which that person is an affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission under the Securities Act), sell the Shares, unless the offer and sale is made
pursuant to (i) an effective registration statement under the Securities Act, which is current and includes the Shares to be sold, or (ii) an appropriate exemption from the registration requirements of the Securities Act, such as that set
forth in Rule 144 promulgated under the Securities Act. With respect to individuals subject to Section 16 of the Exchange Act, transactions under this Award are intended to comply with all applicable conditions of Rule 16b-3, or its successors
under the Exchange Act. To the extent any provision of the Award or action by the Committee fails to so comply, the Committee may determine, to the extent permitted by law, that the provision or action will be null and void. 

9. No Limitation on Rights of the Company. Subject to Sections 4.3, 14.1 and 14.2 of the Plan, the grant of the Award described in
this document will not in any way affect the right or power of the Company to make adjustments, reclassifications or changes in its capital or business structure, or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its
business or assets. 
 10. Plan, Restricted Stock Units, and Award Not a Contract of Employment. Neither the Plan, the
Restricted Stock Units, nor any other right or interest that is part of the Award granted under the Plan or this document is a contract of employment, and no terms of employment or Service of the Participant will be affected in any way by the Plan,
the Restricted Stock Units, the Award, this document or related instruments, except as specifically provided therein. Neither the establishment of the Plan nor the Award will be construed as conferring any legal rights upon the Participant for a
continuation of employment or Service, nor will it interfere with the right of the Company or any Affiliate to discharge the Participant and to treat him or her without regard to the effect that treatment might have upon him or her as a Participant.

 11. Participant to Have No Rights as a Stockholder. Except as provided in Section 4 above, the Participant will
have no rights as a stockholder with respect to any Shares subject to the Restricted Stock Units prior to the date on which he or she is recorded as the holder of those Shares on the records of the Company. 

  
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 12. Notice. Any notice or other communication required or permitted hereunder must be
in writing and must be delivered personally, or sent by certified, registered or express mail, postage prepaid. Any such notice will be deemed given when so delivered personally or, if mailed, three days after the date of deposit in the United
States mail, in the case of the Company to 2208 Production Road, Fort Wayne, Indiana 46808, Attn: Corporate Secretary, and, in the case of the Participant, to the last known address of the Participant in the Company’s records. 

13. Governing Law. This document and the Award will be construed and enforced in accordance with, and governed by, the laws of the
State of Indiana, determined without regard to its conflict of law rules. 
 14. Code Section 409A. Notwithstanding
any other provision in this document, if a Participant is a “specified employee” (as such term is defined for purposes of Code Section 409A) at the time of his or her termination of Service, no amount that is subject to Code
Section 409A and that becomes payable by reason of such termination of Service shall be paid to the Participant before the earlier of (i) the expiration of the six-month period measured from the date of the Participant’s termination
of Service, and (ii) the date of the Participant’s death. 
 15. Plan Document Controls. The rights granted
under this document are in all respects subject to the provisions of the Plan to the same extent and with the same effect as if they were set forth fully therein. If the terms of this document or the Award conflict with the terms of the Plan, the
Plan will control. 

  
 4EX-10.3

 Exhibit 10.3 
 FY14 Annual Incentive Compensation Plan (Executives) 
 Plan Overview 

Grants under this FY14 Annual Incentive Compensation Plan (Executives) (“Annual Executive Plan”) are granted under and governed by the terms and
conditions of the Vera Bradley, Inc. 2010 Equity and Incentive Plan (the “2010 Plan”), as amended. Any term capitalized herein but not defined will have the meaning set forth in the 2010 Plan. 

The Annual Executive Plan is designed to give the Company’s Chief Executive Officer (CEO) and each executive-level employee who reports directly to
the CEO (and is identified on Exhibit A attached hereto) an opportunity to share in the Company’s success for the fiscal year ending February 1, 2014 (the “Performance Period”). The target incentive opportunity for the
Performance Period is based on a percentage of each Participant’s Base Salary (as defined herein). Each Participant’s incentive opportunity is based on two independent performance measures: net revenue and net income (each making up 50% of
corporate performance). 
 Corporate Performance 
 Payouts under the Annual Executive Plan are based on the achievement level of the two equally weighted, independent financial metrics, currently defined as net revenue and net income. Assuming at least
threshold performance levels are met for the Performance Period, the actual payout levels range from 50%-200% of target. 
  

									
	 Net Revenue
	 
	 Performance
	  	Performance Level*	 	 	Payout %	 
	 Threshold

	  	 	93	%
	 	 	50	%

	 Target

	  	 	100	%
	 	 	100	%

	 Excellence
	  	 	107	% 	 	 	200	% 
	
	 Net Income
	 
	 Performance
	  	Performance Level*	 	 	Payout %	 
	 Threshold

	  	 	93	%
	 	 	50	%

	 Target

	  	 	100	%
	 	 	100	%

	 Excellence
	  	 	107	% 	 	 	200	% 

  

	*	- Payout levels are determined using linear interpolation for results falling between the three performance levels. 

Incentive Opportunity 
 As outlined in
the Plan Overview (above), the target incentive opportunity is based on a percentage of each Participant’s Base Salary (as defined below). The actual payout levels range from 50%-200% of target, assuming threshold levels are met. 

													
	 	  	Incentive Opportunity* (% of Base Salary**)	 
	 Participant Level
	  	Threshold	 	 	Target	 	 	Excellence	 
	 CEO
	  	 	37.5	% 	 	 	75	% 	 	 	150	% 
	 Functional Mgmt. 6 (EVPs)
	  	 	25	% 	 	 	50	% 	 	 	100	% 

  

	*	The actual annual incentive that can be earned under this Annual Executive Plan is based on the level of performance achieved (as summarized in the table above) and can
range from 0% of the “Target” (for performance levels below the “Threshold” level) to a maximum of 200% of the “Target” (for performance levels at or above the “Excellence” level). 

	**	“Base Salary” is defined as the Participant’s gross base salary (before taxes and deductions) paid by the Company to the Participant during the
Performance Period. 

 Putting It All Together — An Example 
 Assume Lynn has a Functional Management Level 6 job with a Base Salary of $100,000. Her target incentive is 50% of Base Salary ($50,000). 
 Target — The performance weightings for Lynn’s grade along with dollar target amounts are: 
  

	•	 	 Net Revenue: 50% ($25,000) 

  

	•	 	 Net Income: 50% ($25,000) 

Actual — The actual performance levels were: 
  

	•	 	 Net Revenue: at “Excellence” or 200% ($50,000) 

 

	•	 	 Net Income: at “Target” or 100% ($25,000) 

  

																	
	 Performance Measure
	  	Opportunity	 	  	Weighting	 	 	Result	 	 	Award	 
	 Net Revenue
	  	$	50,000	  	  	 	50	% 	 	 	200	% 	 	$	50,000	  
	 Net Income
	  	$	50,000	  	  	 	50	% 	 	 	100	% 	 	$	25,000	  
		  				  				 				 	  
	  
	 
		  				  				 	 
 	Actual Total
Bonus Payout:	  
  	 	$	75,000	  
		  				  				 				 	  
	  
	 

  
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 Administrative Guidelines — Provide additional information regarding how the Annual Executive Plan
will be administered. 
 1. Awards granted under the Annual Executive Plan are intended to qualify as performance-based compensation under
section 162(m) of the Internal Revenue Code of 1986, as amended (“Code”). Annual incentive payments will become earned (i.e., vested) only if the Company achieves levels of “Net Revenue” and “Net Income” (as defined
below) over the Performance Period as approved by the Compensation Committee. 
 a. Certification of Results. Before any
Awards under the Annual Executive Plan are deemed earned with respect to a Performance Period, the Committee shall certify, in accordance with Section 9.5 of the 2010 Plan, in writing (i) that the performance goals have been met for the
Performance Period, and (ii) the calculation of “Net Income” and “Net Revenue” for the Performance Period. 
 b. Definition of “Net Income”. For purposes of this Annual Executive Plan, the term “Net Income” means, with respect to the Performance Period related to any Awards, the
Company’s consolidated net income, as determined in accordance with U.S. GAAP, adjusted to exclude the effects, as shown on the financial statements furnished as part of Form 8-K (announcing the Company’s fiscal year-end financial results)
for any fiscal year of the Company ending with or within the Performance Period, of (i) any acquisition during the Performance Period, including the amortization expense of intangible assets acquired during the Performance Period,
(ii) material charges or income arising from litigation, (iii) corporate restructuring, asset impairment, or other special charges, and (iv) cumulative effect of changes to U.S. GAAP accounting. 

c. Definition of “Net Revenue”. For purposes of this Annual Executive Plan, the term “Net Revenue” means, with
respect to the Performance Period related to any Awards, the Company’s consolidated net revenue, as determined in accordance with U.S. GAAP. 
 d. Finality of Committee Determinations. Any determination by the Committee of Net Income, Net Revenue and the level and entitlement to an Award, and any interpretation, rule, or decision adopted
by the Committee under the Annual Executive Plan or in carrying out or administering the Annual Executive Plan, is final and binding for all purposes and upon all interested persons, their heirs, and personal representatives. The Committee may rely
conclusively on determinations made by the Company and its auditors to determine Net Income, Net Revenue and related information for purposes of administration of the Annual Executive Plan, whether such information is determined by the Company, its
auditors, or a third-party vendor engaged to provide such information to the Company. This provision is not intended to limit the Committee’s power, to the extent it deems proper in its sole discretion, to take any action permitted under the
Plan and Code Section 162(m) 
 2. Only those regular, full-time and part-time corporate employees selected by the Compensation Committee
and set forth on Exhibit A are eligible to participate in this Annual Executive Plan. 
 3. Participation in the Annual Executive
Plan neither gives any employee the right to be retained as an employee nor limits the Company’s right to discharge or discipline any employee. 

  
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 4. Except as provided herein, (a) no Participant will be entitled to an incentive payment under the
Annual Executive Plan unless the Participant is employed by the Company or an Affiliate in an eligible position on the day the incentive payment is made, and (b) a Participant who separates from the Service for any reason prior to the date of
payment of such incentive will not be entitled to a prorated award, unless otherwise required by applicable state law. Notwithstanding the preceding provisions, the following provisions will apply if, during the Performance Period (or after the
Performance Period and prior to the date of payment), you cease providing Services due to death, Disability or Retirement (and provided that you have not otherwise engaged in an act that would constitute Cause): 

(i) Death or Disability: In the event a Participant’s Service terminates as a result of death or Disability prior to the date
on which the incentive payment is made, the outstanding Award shall be treated as earned at the target level (if such Service terminated prior to the end of the Performance Period), or at the actual level (if such Service terminated after the
Performance Period and prior to the payment date), but prorated based on the number of full fiscal months (in which the Participant provided Service throughout such month) during the Performance Period, with any such earned Awards becoming fully
vested and paid out as provided in section 8, below. 
 (ii) Retirement: In the event a Participant’s Service with
the Company terminates as a result of Retirement during the Performance Period, the outstanding Award shall be earned based on the actual performance level obtained (determined at the end of the Performance Period), but prorated based on the number
of full fiscal months (in which the Participant provided Service throughout such month) during the Performance Period, with any such earned Awards becoming fully vested and paid out as provided in section 8, below. 

In the event a Participant’s Service terminates prior to the date of payment as a result of any reason other than death, Disability, or Retirement,
all unearned incentive compensation granted hereunder shall be forfeited to the Company. 
 5. Notwithstanding anything to the contrary in this
Annual Executive Plan, in the event of a Change in Control of the Company during the Performance Period, then the outstanding Award shall be treated as earned at the target level, but prorated based on the number of full fiscal months (in which the
Participant provided Service throughout such month) during the Performance Period, with any such earned Awards becoming fully vested and paid out on a as soon as practicable (but not later that 30 calendar days) following the Change in Control.
For purposes of this Annual Executive Plan, the term “Change in Control” shall mean the occurrence of any one or more of the following: (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any
Person or group (within the meaning of the Exchange Act and the rules of the Securities and Exchange Commission as in effect on the date of this Award), other than (i) Barbara Baekgaard, Patricia Miller, Michael Ray and Kim Colby and their
respective heirs and descendants and any trust established for the benefit of such Persons, (ii) the Company or a corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their
ownership of stock of the Company, or (iii) any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate, of securities of the Company representing more than twenty-five percent (25%) of the

  
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combined voting power of the Company’s then outstanding securities; (b) the occupation of a majority of the seats (other than vacant seats) on the Board by Persons who were neither
(i) nominated by the Board nor (ii) appointed by directors so nominated; or (c) the consummation of (i) an agreement for the sale or disposition of all or substantially all of the Company’s assets, or (ii) a merger,
consolidation or reorganization of the Company with or involving any other corporation, other than a merger, consolidation or reorganization that results in the voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the combined voting power of the voting securities of the Company (or such surviving entity)
outstanding immediately after such merger, consolidation or reorganization. 
 6. Subject to the discretion of the Compensation Committee of the
Board, Participants will be ineligible to participate in the Annual Executive Plan while employed in any new-hire probationary period. 
 7. All
goal attainment calculations will follow normal rounding guidelines (i.e., 93.1% to 93.49% = 93%; 93.5% to 93.9% = 94%). 
 8. Subject to the
certification requirements of the Compensation Committee (above), payments under the Annual Executive Plan will be paid in cash after the end of the Company’s fiscal tax year but no later than the 15th day of the third month following the
Company’s fiscal tax year on which the annual incentives under this Annual Executive Plan are based. 
 9. The Company shall have the power
and the right to deduct or withhold an amount sufficient to satisfy federal, state, and local taxes (including FICA obligations), domestic or foreign, and other deductions required to be withheld by law with respect to this Award. 

10. Record keeping and computation required by this Annual Executive Plan will be subject to review by third-party auditors, and by the Compensation
Committee. 
 11. Interpretations, determinations, and actions regarding plan administration shall be made by the Compensation Committee. Any
such determinations and any interpretation, rule, or decision under the Annual Executive Plan or in carrying out or administering the Annual Executive Plan, is final and binding for all purposes and upon all interested persons, their heirs, and
personal representatives. The Company or its designee may rely conclusively on determinations made by the Company and its auditors to determine related information for purposes of administration of the Annual Executive Plan, whether such information
is determined by the Company, its auditors, or a third-party vendor engaged to provide such information to the Company. 
 12. While it is the
intent of the Company to continue this Annual Executive Plan as stated herein, the Company reserves the right to amend or discontinue the plan at any time in its sole discretion. 
 13. No Participant can assign, encumber or transfer any of his or her rights and interests under the Award described in this document, except, in the event of his or her death, by will or the laws of
descent and distribution. 

  
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 14. The rights granted under this document are in all respects subject to the provisions of the 2010 Plan to
the same extent and with the same effect as if they were set forth fully therein. If the terms of this document or the Award conflict with the terms of the 2010 Plan, the 2010 Plan will control. 

Exhibit A 
 Employees Eligible for FY14 Annual Executive Plan 
  

	1.	Mike Ray 

	2.	Barbara Baekgaard 

	3.	C. Roddy Mann 

	4.	Kimberly Colby 

	5.	Matthew Wojewuczki 

	6.	Bonita Inza 

  
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