The VTS layer directory is used as the basis for all new standard applications. Inside the VTS layer directory resides a Template directory. This Template directory (referred to as the VTS layer Template directory) holds contains some important files and directories. The structure of the VTS layer Template directory is illustrated below.

When a new application is created based on the VTS layer, all the files and directories that exist within the VTS layer's Template directory are copied directly onto the root of the new application's directory. Some additional files are also automatically generated by VTS and are saved to the application directory.
One of the directories created in a new application is an empty Template directory (referred to as the application layer Template directory). The application layer Template directory can be used to store any files or directories that you want future layers, based on this application layer, to inherit. (See: Layer Inheritance.)
Remember that the copying of files and directories from a Template directory to an application directory is a one-time process. You cannot add files or directories to a Template directory for access by a layered application after the application has been created. You must always add the files and directories you wish the new application to access before creating the new application. (See: Propagation of Changes Through Layers for more details.)
There is also a Template directory (VTS Template directory) that resides directly on the root of the VTS installation directory. This is a unique Template directory that is not to be confused with the Template directories residing within the VTS layer directory or any of the application directories.

The Template directory in the VTS installation directory is used when a new scripting application is created.