In connection with the previously disclosed retirement of Mr.
Hunzeker and his related resignation as Chief Executive Officer,
President and a member of the Board of Directors (the Board) of
Vectrus, Inc. (the Company), on December 7, 2016, the Company and
Mr. Hunzeker entered into a Separation Agreement and Complete
Release of Liability, dated December 7, 2016 (the Separation
Agreement). to the Separation Agreement, the Company and Mr.
Hunzeker agreed that (i) his last day of active full-time
employment with the Company will be December 5, 2016 (the
Separation Date), (ii) the Company will continue to pay Mr.
Hunzeker his present salary at the rate of Six Hundred Thousand
Seventeen and 60/100 Dollars ($600,017.60) per year, payable in
normal bi-weekly payments for the period from December 6, 2016
through December 5, 2018 (the Severance Pay Period), (iii) he
will be paid for any accrued, unused paid time off (PTO), (iv) he
will be eligible for consideration for a bonus for 2016 payable
in 2017, and the bonus amount will be calculated based on the
performance payout factor that is applied to the 2016 bonus pool,
as determined by the Compensation and Personnel Committee of the
Board, (v) a lump sum payment of $10,000 to assist with
relocation expenses (e.g., moving and shipment of personal
property from his Colorado Springs residence and early
termination of contracts relating to his Colorado Springs
residence), (vi) he will be eligible to continue participation in
the Companys medical, dental and vision plans through the
Severance Pay Period, with the Company and Mr. Hunzeker
continuing to share the monthly premium expense for such coverage
through the Severance Pay Period, and the COBRA continuation
period will run concurrently from the Separation Date, (vii) he
will not be eligible to participate in any other Company benefit
plans, policies, programs and arrangements following the
Separation Date and his remaining rights in such plans, policies,
programs and arrangements shall be governed by the terms thereof,
(viii) his outstanding equity awards will be treated in
accordance with the terms of the applicable plan and award
agreements and (ix) he will be available upon reasonable notice
during the Severance Pay Period to provide services to the
Company in line with his prior Chief Executive Officer
responsibilities.

In addition, the Separation Agreement generally provides that the
obligations of the Company described above are subject to certain
conditions, which, if not complied with by Mr. Hunzeker, could
require him to return any severance payments, bonus payment and
relocation assistance payment made to him and pay any legal fees
incurred by the Company to recover such payments. The Separation
Agreement, which is subject to a seven-day revocation period,
also provides for a release of liabilities.

The foregoing description of the terms of the Separation
Agreement is not complete and is subject to, and qualified in its
entirety by, the terms of the Separation Agreement. A copy of the
Separation Agreement is attached hereto as Exhibit 10.01 and
incorporated herein by reference.

Item9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.>>>> Description