Document:

EX-10.16

 Exhibit 10.16 

FOURTH AMENDED AND RESTATED 

2005 VIRGIN AMERICA INC. STOCK INCENTIVE PLAN 

(As adopted November 14, 2005; as amended and restated January 9, 2010, as further 

amended and restated April 2, 2012, and as further amended and restated July 26, 2013) 

1. Purpose of the Plan 
 The purpose of
the Plan is to aid the Company and its Affiliates in recruiting and retaining key employees (including prospective employees), directors or consultants of outstanding ability and to motivate such employees, directors or consultants to exert their
best efforts on behalf of the Company and its Affiliates by providing incentives through the granting of Awards. The Company expects that it will benefit from the added interest which such key employees, directors or consultants will have in the
welfare of the Company as a result of their proprietary interest in the Company’s success. 
 2. Definitions 

The following capitalized terms used in the Plan have the respective meanings set forth in this Section: 

(a) Act: The Securities Exchange Act of 1934, as amended, or any successor thereto. 

(b) Affiliate: With respect to any Person, any entity directly or indirectly controlling, controlled by, or under common control with,
the Person or any other entity designated by the Board in which the Company or an Affiliate has an interest. As applied to Virgin only, the term Affiliate shall include, without limitation, Sir R.C.N. Branson, his spouse, his siblings and their
spouses, and descendants of any of them (whether natural or adopted) (collectively, the “Branson Group”) and any trust or other entity established and maintained primarily for the benefit of any member of the Branson Group and any entity
controlled by any member of the Branson Group. 
 (c) Award: An Option, Stock Appreciation Right or Other Stock-Based Award granted
pursuant to the Plan. 
 (d) Beneficial Owner: A “beneficial owner”, as such term is defined in Rule 13d-3 under the Act (or any successor rule thereto). 
 (e) Board: The Board of Directors
of the Company. 
 (f) Bylaws: The Third Amended and Restated Bylaws of the Company, as may from time to time be amended. 

(g) Change in Control: The occurrence of any of the following events after the Initial Capitalization: (i) the sale or disposition,
in one or a series of related transactions, of all or substantially all, of the assets of the Company to any “person” or “group” (as such terms are defined in Sections 13(d)(3) or 14(d)(2) of the Act) other than one or more
of the Permitted Holders, or (ii) any person or group, other than one or more of the Permitted Holders, is or 

 
becomes the Beneficial Owner, directly or indirectly, of more than 50% of the total voting power of the voting stock of the Company (or any entity which controls the Company or which is a
successor to all or substantially all of the assets of the Company), including by way of merger, consolidation, tender or exchange offer or otherwise and the representatives of the Permitted Holders (individually or in the aggregate) cease to
comprise a majority of the Board. 
 (h) Code: The Internal Revenue Code of 1986, as amended, or any successor thereto. 

(i) Company: Virgin America Inc., a Delaware corporation. 

(j) Effective Date: November 14, 2005. 

(k) Employment: The term “Employment” as used herein shall be deemed to refer to (i) a Participant’s employment if
the Participant is an employee of the Company or any of its Affiliates, (ii) a Participant’s services as a consultant, if the Participant is consultant to the Company or its Affiliates and (iii) a Participant’s services as an
non-employee director, if the Participant is a non-employee member of the board of directors of the Company or any of its Affiliates. 
 (l)
Fair Market Value: On a given date, (i) if there should be a public market for the Shares on such date, the arithmetic mean of the high and low prices of the Shares as reported on such date on the Composite Tape of the principal national
securities exchange on which such Shares are listed or admitted to trading, or, if the Shares are not listed or admitted on any national securities exchange, the arithmetic mean of the per Share closing bid price and per Share closing asked price on
such date as quoted on the National Association of Securities Dealers Automated Quotation System (or such market in which such prices are regularly quoted)(the “NASDAQ”), or, if no sale of Shares shall have been reported on the Composite
Tape of any national securities exchange or quoted on the NASDAQ on such date, then the immediately preceding date on which sales of the Shares have been so reported or quoted shall be used, and (ii) if there should not be a public market for
the Shares on such date, the Fair Market Value shall be the value established by the Board in good faith. 
 (m) Initial Capitalization
Date: the occurrence of the first closing of additional capital investments in the Company involving unconditional commitments by investors (including third party U.S. investors, and Virgin and its Affiliates) deemed sufficient by Virgin to
submit the anticipated airline business of the Company to the United States Department of Transportation for formal regulatory approval, it being understood that the first closing of such initial capitalization may be for less than the total
expected amount of such commitments. 
 (n) ISO: An Option that is also an incentive stock option granted pursuant to
Section 6(d) of the Plan. 
 (o) LSAR: A limited stock appreciation right granted pursuant to Section 7(d) of the Plan. 

(p) Option: A stock option granted pursuant to Section 6 of the Plan. 

  
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 (q) Option Price: The purchase price per Share of an Option, as determined pursuant to
Section 6(a) of the Plan. 
 (r) Other Stock-Based Awards: Awards granted pursuant to Section 8 of the Plan. 

(s) Participant: An employee (including a prospective employee), director or consultant of the Company or one of its Affiliates who is
selected by the Board to participate in the Plan. 
 (t) Permitted Holder: As of the date of determination, any and all of (i) an
employee benefit plan (or trust forming a part thereof) maintained by (A) the Company or (B) any corporation or other Person of which a majority of its voting power of its voting equity securities or equity interest is owned, directly or
indirectly, by the Company, (ii) Virgin or any of its Affiliates or (ii) any Person whose initial capital investment in the Company occurred on or prior to the date that the Company’s anticipated airline business first was submitted
to the United States Department of Transportation for formal regulatory approval, or any of their respective Affiliates. 
 (u)
Person: A “person”, as such term is used for purposes of Section 13(d) or 14(d) of the Act (or any successor section thereto). 

(v) Plan: The Fourth Amended and Restated 2005 Virgin America Inc. Stock Incentive Plan. 

(w) Shares: Shares of Class E common stock, par value $0.01 per share, of the Company, shares of Class G common stock, par
value $0.01 per share, of the Company, including in each case any securities issued in respect thereof, or in substitution therefor, as provided in the Certificate of Incorporation of the Company, as may be amended, supplemented or modified from
time to time,. 
 (x) Stock Appreciation Right: A stock appreciation right granted pursuant to Section 7 of the Plan. 

(y) Subsidiary: A subsidiary corporation, as defined in Section 424(f) of the Code (or any successor section thereto). 

(z) Virgin: VX Holdings, L.P. 
 3.
Shares Subject to the Plan 
 The total number of Shares which may be issued under the Plan is 13,372,362, of which 100 of such Shares
are shares of Class E common stock of the Company and 13,372,262 of such Shares are shares of Class G common stock of the Company and the maximum number of Shares which may be issued under the Plan through ISOs shall be 13,372,262 Shares.
The maximum number of Shares for which Options and Stock Appreciation Rights (or Other Stock-Based Awards under Section 8(b)) may be granted during a calendar year to any Participant shall be 13,372,262. The Shares may consist, in whole or in
part, of unissued Shares or treasury Shares. The issuance of Shares or the payment of cash upon the exercise of an Award or in consideration of the cancellation or termination of an Award shall reduce the total number of Shares available under the
Plan, as applicable. Shares which are subject to Awards which terminate or lapse without the payment of consideration may be granted again under the Plan. 

  
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 4. Administration 

The Plan shall be administered by the Board, in accordance with the requirements of the Bylaws; provided that the Board may delegate its duties
and powers in whole or in part to any committee thereof to the extent permitted under the Bylaws, provided that any such committee will consist solely of at least two individuals who are intended to qualify as “non-employee directors”
within the meaning of Rule 16b-3 under the Act (or any successor rule thereto) and “outside directors” within the meaning of Section 162(m) of the Code (or any successor thereto) during any
period that the Company is subject thereto. Awards may, in the discretion of the Board, be made under the Plan in assumption of, or in substitution for, outstanding awards previously granted by the Company or its Affiliates or a company acquired by
the Company or with which the Company combines. The number of Shares underlying such substitute awards shall be counted against the aggregate number of Shares available for Awards under the Plan. The Board is authorized to grant Awards consistent
with the terms of the Plan, to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan. The
Board may correct any defect or supply any omission or reconcile any consistency in the Plan in the manner and to the extent the Board deems necessary or desirable. Any decision of the Board in the interpretation and administration of the Plan, as
described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries or successors). The Board shall have the
full power and authority to establish the terms and conditions of any Award consistent with the provisions of the Plan and to waive any such terms and conditions at any time (including, without limitation, accelerating or waiving any vesting
conditions and/or accelerating payment). The Board shall require payment of any amount it may determine to be necessary to withhold for federal, state, local or other taxes as a result of the exercise, grant or vesting of an Award. To the extent
permitted by the Board, the Participant may elect to pay a portion or all of such withholding taxes by (a) delivery in Shares or (b) having Shares withheld by the Company from any Shares that would have otherwise been received by the
Participant. 
 5. Limitations 
 No
Award may be granted under the Plan after the tenth anniversary of the Effective Date, but Awards theretofore granted may extend beyond that date. 
 6.
Terms and Conditions of Options 
 Options granted under the Plan shall be, as determined by the Board, non-qualified or incentive stock
options for federal income tax purposes, as evidenced by the related Award agreements, and shall be subject to the foregoing and the following terms and conditions and to such other terms and conditions, not inconsistent therewith, as the Board
shall determine: 

  
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 (a) Option Price. The Option Price per Share shall be determined by the Board at the time
the Option is granted. 
 (b) Exercisability. Options granted under the Plan shall be exercisable at such time and upon such terms and
conditions as may be determined by the Board, but in no event shall an Option be exercisable more than ten years after the date it is granted. 

(c) Exercise of Options. Except as otherwise provided in the Plan or in an Award agreement, an Option may be exercised for all, or from
time to time any part, of the Shares for which it is then exercisable. For purposes of Section 6 of the Plan, the exercise date of an Option shall be the later of the date a notice of exercise is received by the Company and, if applicable, the
date payment is received by the Company pursuant to clauses (i), (ii), (iii) or (iv) in the following sentence. The purchase price for the Shares as to which an Option is exercised shall be paid to the Company in full at the time of
exercise at the election of the Participant (i) in cash or its equivalent (e.g., by check), (ii) to the extent permitted by the Board, in Shares having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased
and satisfying such other requirements as may be imposed by the Board; provided, that such Shares have been held by the Participant for no less than six months (or such other period as established from time to time by the Board in order to avoid
adverse accounting treatment applying generally accepted accounting principles), (iii) partly in cash and, to the extent permitted by the Board, partly in such Shares or (iv) to the extent permitted by the Board, if there is a public
market for the Shares at such time, through the delivery of irrevocable instructions to a broker to sell Shares obtained upon the exercise of the Option and to deliver promptly to the Company an amount out of the proceeds of such Sale equal to the
aggregate Option Price for the Shares being purchased. No Participant shall have any rights to dividends or other rights of a stockholder with respect to Shares subject to an Option until the Participant has given written notice of exercise of the
Option, paid in full for such Shares and, if applicable, has satisfied any other conditions imposed by the Board pursuant to the Plan 
 (d)
ISOs. The Board may grant Options under the Plan that are intended to be ISOs. Such ISOs shall comply with the requirements of Section 422 of the Code (or any successor section thereto). No ISO may be granted to any Participant who at
the time of such grant, owns more than ten percent of the total combined voting power of all classes of stock of the Company or of any Subsidiary, unless (i) the Option Price for such ISO is at least 110% of the Fair Market Value of a Share on
the date the ISO is granted and (ii) the date on which such ISO terminates is a date not later than the day preceding the fifth anniversary of the date on which the ISO is granted. Any Participant who disposes of Shares acquired upon the
exercise of an ISO either (i) within two years after the date of grant of such ISO or (ii) within one year after the transfer of such Shares to the Participant, shall notify the Company of such disposition and of the amount realized upon
such disposition. All Options granted under the Plan are intended to be nonqualified stock options, unless the applicable Award agreement expressly states that the Option is intended to be an ISO. If an Option is intended to be an ISO, and if for
any reason such Option (or portion thereof) shall not qualify as an ISO, then, to the extent of such nonqualification, such Option (or portion thereof) shall be regarded as a nonqualified stock option granted under the Plan; provided that such
Option (or potion thereof) otherwise complies with the Plan’s requirements relating to nonqualified stock options. In no event shall any member of the Board, the Company or any of its Affiliates (or their respective employees, officers or
directors) have any liability to any Participant (or any other Person) due to the failure of an Option to qualify for any reason as an ISO. 

  
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 (e) Attestation. Wherever in this Plan or any agreement evidencing an Award a Participant
is permitted to pay the exercise price of an Option or taxes relating to the exercise of an Option by delivering Shares, the Participant may, subject to procedures satisfactory to the Board, satisfy such delivery requirement by presenting proof of
beneficial ownership of such Shares, in which case the Company shall treat the Option as exercised without further payment and shall withhold such number of Shares from the Shares acquired by the exercise of the Option. 

7. Terms and Conditions of Stock Appreciation Rights 

(a) Grants. The Board also may grant (i) a Stock Appreciation Right independent of an Option or (ii) a Stock Appreciation
Right in connection with an Option, or a portion thereof. A Stock Appreciation Right granted pursuant to clause (ii) of the preceding sentence (A) may be granted at the time the related Option is granted or at any time prior to the
exercise or cancellation of the related Option, (B) shall cover the same number of Shares covered by an Option (or such lesser number of Shares as the Board may determine) and (C) shall be subject to the same terms and conditions as such
Option except for such additional limitations as are contemplated by this Section 7 (or such additional limitations as may be included in an Award agreement). 

(b) Terms. The exercise price per Share of a Stock Appreciation Right shall be an amount determined by the Board but in no event shall
such amount be less than the greater of (i) the Fair Market Value of a Share on the date the Stock Appreciation Right is granted or, in the case of a Stock Appreciation Right granted in conjunction with an Option, or a portion thereof, the
Option Price of the related Option and (ii) the minimum amount permitted by applicable laws, rules, by-laws or policies of regulatory authorities or stock exchanges. Each Stock Appreciation Right granted
independent of an Option shall entitle a Participant upon exercise to an amount equal to (i) the excess of (A) the Fair Market Value on the exercise date of one Share over (B) the exercise price per Share, times (ii) the number
of Shares covered by the Stock Appreciation Right. Each Stock Appreciation Right granted in conjunction with an Option, or a portion thereof, shall entitle a Participant to surrender to the Company the unexercised Option, or any portion thereof, and
to receive from the Company in exchange therefor an amount equal to (i) the excess of (A) the Fair Market Value on the exercise date of one Share over (B) the Option Price per Share, times (ii) the number of Shares covered by the
Option, or portion thereof, which is surrendered. The date a notice of exercise is received by the Company shall be the exercise date. Payment shall be made in Shares or in cash, or partly in Shares and partly in cash (any such Shares valued at such
Fair Market Value), all as shall be determined by the Board. Stock Appreciation Rights may be exercised from time to time upon actual receipt by the Company of written notice of exercise stating the number of Shares with respect to which the Stock
Appreciation Right is being exercised. No fractional Shares will be issued in payment for Stock Appreciation Rights, but instead cash will be paid for a fraction or, if the Board should so determine, the number of Shares will be rounded downward to
the next whole Share. 

  
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 (c) Limitations. The Board may impose, in its discretion, such conditions upon the
exercisability or transferability of Stock Appreciation Rights as it may deem fit. 
 (d) Limited Stock Appreciation Rights. The Board
may grant LSARs that are exercisable upon the occurrence of specified contingent events. Such LSARs may provide for a different method of determining appreciation, may specify that payment will be made only in cash and may provide that any related
Awards are not exercisable while such LSARs are exercisable. Unless the context otherwise requires, whenever the term “Stock Appreciation Right” is used in the Plan, such term shall include LSARs. 

(e) Compliance. Notwithstanding the foregoing, the Board intends that any Stock Appreciation Right or LSAR granted pursuant to this Plan
shall comply with Section 409A of the Code. 
 8. Other Stock-Based Awards 

The Board, in its sole discretion, may grant or sell Awards of Shares, Awards of restricted Shares and Awards that are valued in whole or in
part by reference to, or are otherwise based on the Fair Market Value of, Shares (“Other Stock-Based Awards”). Such Other Stock-Based Awards shall be in such form, and dependent on such conditions, as the Board shall determine, including,
without limitation, the right to receive, or vest with respect to, one or more Shares (or the equivalent cash value of such Shares) upon the completion of a specified period of service, the occurrence of an event and/or the attainment of performance
objectives. Other Stock-Based Awards may be granted alone or in addition to any other Awards granted under the Plan. Subject to the provisions of the Plan, the Board shall determine to whom and when Other Stock-Based Awards will be made, the number
of Shares to be awarded under (or otherwise related to) such Other Stock-Based Awards; whether such Other Stock-Based Awards shall be settled in cash, Shares or a combination of cash and Shares; and all other terms and conditions of such Awards
(including, without limitation, the vesting provisions thereof and provisions ensuring that all Shares so awarded and issued shall be fully paid and non-assessable). 

9. Adjustments Upon Certain Events 

Notwithstanding any other provisions in the Plan to the contrary, the following provisions shall apply to all Awards granted under the Plan:

 (a) Generally. In the event of any change in the outstanding Shares after the Effective Date by reason of any Share dividend or
split, reorganization, recapitalization, merger, consolidation, spin-off, combination, combination or transaction or exchange of Shares or other corporate exchange, or any distribution to shareholders of Shares other than regular cash dividends or
any transaction similar to the foregoing, the Board in its sole discretion and without liability to any person shall make such substitution or adjustment, if any, as it deems to be equitable or appropriate in order to prevent dilution or
enlargements of the benefits or potential benefits intended to be made available under the Plan, as to (i) the number or kind of Shares or other securities issued or reserved for issuance pursuant to the Plan or pursuant to outstanding Awards,
(ii) the maximum number of Shares for which Options or Stock Appreciation Rights may be granted during a calendar year to any Participant, (iii) the Option Price or exercise price of any stock appreciation right and/or (iv) any other
affected terms of such Awards. 

  
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 (b) Change in Control. In the event of a Change of Control after the Effective Date,
(i) if determined by the Board in the applicable Award agreement or otherwise determined by the Board in its discretion, any outstanding Awards then held by Participants which are unexercisable or otherwise unvested or subject to lapse
restrictions shall automatically be deemed exercisable or otherwise vested or no longer subject to lapse restrictions, as the case may be, as of immediately prior to such Change of Control and (ii) the Board may, but shall not be obligated to,
(A) subject to, and only to the extent permitted under, Section 409A of the Code, cancel such Awards for fair value (as determined in the sole discretion of the Board) which, in the case of Options and Stock Appreciation Rights, would
unless otherwise determined by the Board equal the excess, if any, of value of the consideration to be paid in the Change of Control transaction to holders of the same number of Shares subject to such Options or Stock Appreciation Rights (or, if no
consideration is paid in any such transaction, the Fair Market Value of the Shares subject to such Options or Stock Appreciation Rights) over the aggregate exercise price of such Options or Stock Appreciation Rights or (B) provide for the
issuance of substitute Awards that will substantially preserve the otherwise applicable terms of any affected Awards previously granted hereunder as determined by the Board in its sole discretion or (C) provide that for a period of at least
15 days prior to the Change of Control, such Options shall be exercisable as to all shares subject thereto and that upon the occurrence of the Change of Control, such Options shall terminate and be of no further force and effect. 

10. No Right to Employment or Awards 
 The
granting of an Award under the Plan shall impose no obligation on the Company or any if its Affiliates to continue the Employment of a Participant and shall not lessen or affect the Company’s or its Affiliate’s right to terminate the
Employment of such Participant. No Participant or other Person shall have any claim to be granted any Award, and there is no obligation for uniformity of treatment of Participants, or holders or beneficiaries of Awards. The terms and conditions of
Awards and the Board’s determinations and interpretations with respect thereto need not be the same with respect to each Participant (whether or not such Participants are similarly situated). 

11. Successors and Assigns 
 The Plan
shall be binding on all successors and assigns of the Company and a Participant, including without limitation, the estate of such Participant and the executor, administrator or trustee of such estate, or any receiver or trustee in bankruptcy or
representative of the Participant’s creditors. 
 12. Nontransferability of Awards 

Unless otherwise determined by the Board, an Award shall not be transferable or assignable by the Participant otherwise than by will or by the
laws of descent and distribution. An Award exercisable after the death of a Participant may be exercised by the legatees, personal representatives or distributees of the Participant. 

  
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 13. Cancellation and Rescission of Awards 

Unless otherwise provided in an Award agreement, the Board shall have the right to cancel, rescind, suspend, withhold or otherwise limit or
restrict any unvested, unexercised, unexpired, unpaid, or deferred Award at any time if the Participant is not in compliance with all applicable provisions of the Award agreement and the Plan, or if the Participant violates a Non-Competition
Covenant or the terms of a Confidentiality Agreement (each as defined below). Upon exercise of, or payment or delivery pursuant to, an Award, the Participant shall certify in a manner acceptable to the Board that the Participant is in compliance
with the terms and conditions of the Award and the Plan. In the event the Participant violates a Non-Competition Covenant or the terms of a Confidentiality Agreement prior to, or during the 12 month period after; any exercise of, or payment or
delivery pursuant to, an Award, such exercise, payment or delivery may be rescinded for a period of 2 years thereafter. In the event of any such rescission, the Participant shall pay to the Company the amount of any gain realized on payment
received as a result of the rescinded exercise, payment or delivery, in such manner and on such terms and conditions as may be required by the Board, and the Company shall be entitled to set-off against the amount of any such gain any amount owed to
the Participant by the Company or any of its Affiliates. 
 For purposes hereof, a “Non-Competition Covenant” means any one of the
following: 
 (i) the Participant will not directly or indirectly engage in any business that competes with the business of the
Company or its affiliates (including, without limitation, businesses which the Company or its affiliates have specific plans to conduct in the future and as to which Participant is aware of such planning) in any geographical area within the United
States (a “Competitive Business”); 
 (ii) the Participant will not directly or indirectly enter the employ of, or render
any services to, any Person (or any division or controlled or controlling affiliate of any Person) who or which engages in a Competitive Business; 

(iii) the Participant will not directly or indirectly acquire a financial interest in, or otherwise become actively involved with, any
Competitive Business, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant; or 

(iv) the Participant will not directly or indirectly interfere with, or attempt to interfere with, business relationships (whether
formed before, on or after the date of this Agreement) between the Company or any of its affiliates and customers, clients, suppliers, partners, members or investors of the Company or its affiliates. 

Violation of a “Non-Competition Covenant” shall not occur by reason of the Participant’s, directly or indirectly, owning,
solely as an investment, securities of any Person engaged in the business of the Company or its affiliates which are publicly traded on a national or regional stock exchange or on the over-the-counter market, if the Participant (i) is not a
controlling person of, or a member of a group which controls, such Person and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such Person. 

  
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 For purposes hereof, a “Confidentiality Agreement” means any confidentiality plan,
policy, agreement or arrangement of the Company or any of the Company’s Affiliates to which the Participant is subject, including pursuant to the terms of an employment agreement. 

14. Amendments or Termination 
 The Board
may amend, alter or discontinue the Plan, but no amendment, alteration or discontinuation shall be made, (a) without the approval of the shareholders of the Company, if such action would (except as is provided in Section 9 of the Plan),
increase the total number of Shares reserved for the purposes of the Plan or change the maximum number of Shares for which Awards may be granted to any Participant or (b) without the consent of a Participant, if such action would diminish any
of the rights of the Participant under any Award theretofore granted to such Participant under the Plan; provided, however, that the Board may amend the Plan in such manner as it deems necessary to permit the granting of Awards meeting the
requirements of the Code or other applicable laws. 
 Without limiting the generality of the foregoing, to the extent applicable,
notwithstanding anything herein to the contrary, this Plan and Awards issued hereunder shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretative guidance issued thereunder,
including without limitation any such regulations or other guidance that may be issued after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that the Board determines that any amounts payable hereunder
will be taxable to a Participant under Section 409A of the Code and related Department of Treasury guidance prior to payment to such Participant of such amount, the Company may (a) adopt such amendments to the Plan and Awards and
appropriate policies and procedures, including amendments and policies with retroactive effect, that the Board determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Plan and Awards hereunder
and/or (b) take such other actions as the Board determines necessary or appropriate to comply with the requirements of Section 409A of the Code. 

15. International Participants 
 With
respect to Participants who reside or work outside the United States of America and who are not (and are not expected to be) “covered employees” within the meaning of Section 162(m) of the Code, the Board may, in its sole discretion,
amend the terms of the Plan or Awards with respect to such Participants in order to conform such terms with the requirements of local law. 
 16. Choice
of Law 
 The Plan shall be governed by and construed in accordance with the laws of the State of Delaware without regard to conflicts of
laws. 
 17. Effectiveness of the Plan 

The Plan shall be effective as of the Effective Date. 

  
 10EX-10.17

 Exhibit 10.17 

IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFORE,
WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA, EXCEPT AS PERMITTED IN THE COMMISSIONER’S RULES. 

VIRGIN AMERICA INC. 
 AMENDED AND
RESTATED 2005 STOCK INCENTIVE PLAN 
 NONQUALIFIED STOCK OPTION AGREEMENT 

THIS AGREEMENT (the “Agreement”), is made effective as of the
            day of             , 20    , (hereinafter called the “Date of Grant”), between Virgin
America Inc., a Delaware corporation (hereinafter called the “Company”), and             (hereinafter called the “Participant”): 

R E C I T A L S: 

WHEREAS, the Company adopted the Amended and Restated 2005 Virgin America Inc. Stock Incentive Plan (the “Plan”) on January 9,
2010, which Plan is incorporated herein by reference and made a part of this Agreement. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and 

WHEREAS, the Committee has determined that it would be in the best interests of the Company and its shareholders to grant the option provided
for herein (the “Option”) to the Participant pursuant to the Plan and the terms set forth herein. 
 NOW THEREFORE, in
consideration of the mutual covenants hereinafter set forth, the parties agree as follows: 
 1. Grant of the Option. The Company
hereby grants to the Participant the right and option (the “Option”) to purchase, on the terms and conditions hereinafter set forth, all or any part of an aggregate of
            Shares of Class G Common Stock, subject to adjustment as set forth in the Plan. The purchase price of the Shares subject to the Option shall be
$            per Share (the “Option Price”). The Option is intended to be a non-qualified stock option, and is not intended to be treated as an option that complies with
Section 422 of the Internal Revenue Code of 1986, as amended. 
 2. Vesting. 

(a) [Subject to the Participant’s continued Employment with the Company, the Option shall vest and become exercisable with
respect to the Plan.] twenty-five percent (25%) of the Shares initially covered by the Option on each of the first, second, third and fourth anniversaries of the date of hire. At any time, the portion of the Option which has become vested and
exercisable as described above (or pursuant to Section 2(c) below) is hereinafter referred to as the “Vested Portion”.] 

 (b) If the Participant’s Employment with the Company is terminated (or
Constructively Terminated) without Cause within one (1) year of a Change in Control, then fifty percent (50%) of the portion of the Option that has not become vested and exercisable on the termination date (or Constructive Termination
date) shall become vested and exercisable immediately. For purposes hereof, the Participant shall be deemed to be “Constructively Terminated” if there is a material reduction in the Participant’s rate of compensation or a material
reduction in the Participant’s responsibilities, authority, title or duties, and “Constructive Termination” shall have the corresponding meaning. 

(c) If the Participant’s Employment with the Company is terminated for any reason, the Option shall, to the extent not
then vested, be canceled by the Company without consideration and the Vested Portion of the Option shall remain exercisable for the period set forth in Section 3(a). 

3. Exercise of Option. 

(a) Period of Exercise. Subject to the provisions of the Plan and this Agreement, the Participant may exercise all or
any part of the Vested Portion of the Option at any time prior to the earliest to occur of: 
 (i) the tenth
anniversary of the Date of Grant; 
 (ii) one year following the date of the Participant’s termination of Employment due
to death or “Disability”; 
 (iii) the later of (x) six months following the date of the Participant’s
termination of Employment by the Company without “Cause” or (y) 7 days following the expiration of any underwriter’s lock-up period imposed as part of Virgin’s IPO (but in no event shall Clause (y) of this subparagraph
(iii) apply later than 270 days after Virgin’s IPO); 
 (iv) five days following the date of the Participant’s
termination of Employment by the Company for “Cause” and; 
 (v) thirty days following the date of the termination
of Employment by the Participant for any reason. 
 For purposes of this agreement: 

“Cause” shall mean “Cause” as defined in any employment agreement then in effect between the Participant
and the Company or if not defined therein or, if there shall be no such agreement, (i) Participant’s engagement in misconduct which is materially injurious to the Company or its affiliates, (ii) Participant’s continued failure to
substantially perform his duties to the Company, (iii) Participant’s repeated dishonesty in the performance of his duties to the Company, (iv) Participant’s commission of an act or acts constituting any (x) fraud against, or
misappropriation or embezzlement from the Company or any of its affiliates, (y) crime involving moral turpitude, or (z) offense that 

  
 2 

 
could result in a jail sentence of at least 30 days or (v) Participant’s material breach of any confidentiality or non-competition covenant entered into between the Participant and the
Company. The determination of the existence of Cause shall be made by the Committee in good faith, which determination shall be conclusive for purposes of this Agreement; and 

“Disability” shall mean “disability” as defined in any employment agreement then in effect between the
Participant and the Company or if not defined therein or if there shall be no such agreement, as defined in the Company’s long-term disability plan as in effect from time to time, or if there shall be no plan or if not defined therein, the
Participant’s becoming physically or mentally incapacitated and consequent inability for a period of six (6) months in any twelve (12) consecutive month period to perform his duties to the Company. 

(b) Method of Exercise. 

(i) Subject to Section 3(a), the Vested Portion of the Option may be exercised by delivering to the Company at its
principal office written notice of intent to so exercise; provided that, the Option may be exercised with respect to whole Shares only. Such notice shall specify the number of Shares for which the Option is being exercised and shall be
accompanied by payment in full of the Option Price. The payment of the Option Price may be made at the election of the Participant (i) in cash or its equivalent (e.g., by check), (ii) to the extent permitted by the Committee, in Shares
having a Fair Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such other requirements as may be imposed by the Committee; (iii) partly in cash and, to the extent permitted by the Committee, partly
in such Shares or (iv) if there is a public market for the Shares at such time, through the delivery of irrevocable instructions to a broker to sell Shares obtained upon the exercise of the Option and to deliver promptly to the Company an
amount out of the proceeds of such Sale equal to the aggregate option price for the Shares being purchased. No Participant shall have any rights to dividends or other rights of a stockholder with respect to Shares subject to an Option until the
Participant has given written notice of exercise of the Option, paid in full for such Shares and, if applicable, has satisfied any other conditions imposed by the Committee pursuant to the Plan. 

(ii) Notwithstanding any other provision of the Plan or this Agreement to the contrary, the Option may not be exercised prior
to the completion of any registration or qualification of the Option or the Shares under applicable state and federal securities or other laws, or under any ruling or regulation of any governmental body or national securities exchange, that the
Committee shall in its sole discretion determine to be necessary or advisable. 
 (iii) Upon the Company’s determination
that the Option has been validly exercised as to any of the Shares, the Company shall issue certificates in the Participant’s name for such Shares. However, the Company shall not be liable to the Participant for damages relating to any delays
in issuing the certificates to him, any loss of the certificates, or any mistakes or errors in the issuance of the certificates or in the certificates themselves. 

  
 3 

 (iv) In the event of the Participant’s death, the Vested Portion of the
Option shall remain exercisable by the Participant’s executor or administrator, or the person or persons to whom the Participant’s rights under this Agreement shall pass by will or by the laws of descent and distribution as the case may
be, to the extent set forth in Section 3(a). Any heir or legatee of the Participant shall take rights herein granted subject to the terms and conditions hereof. 

4. No Right to Continued Employment. The granting of the Option evidenced hereby and this Agreement shall impose no
obligation on the Company or any Affiliate to continue the Employment of the Participant and shall not lessen or affect the Company’s or its Affiliate’s right to terminate the Employment of such Participant. 

5. Legend on Certificates. The certificates representing the Shares purchased by exercise of the Option shall be
subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are
listed, and any applicable Federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. The California Commissioner of Corporations may require that the
following legend also be placed upon the share certificate(s) evidencing ownership of the Shares: IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR, WITHOUT THE PRIOR
WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA, EXCEPT AS PERMITTED IN THE COMMISSIONER’S RULES. 

6. Transferability. The Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or
encumbered by the Participant otherwise than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or
any Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. No such permitted transfer of the Option to heirs or legatees of the Participant shall
be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the
transferee or transferees of the terms and conditions hereof. During the Participant’s lifetime, the Option is exercisable only by the Participant. 

7. Withholding. The Participant may be required to pay to the Company or any Affiliate and the Company shall have the
right and is hereby authorized to withhold, any applicable withholding taxes in respect of the Option, its exercise or any payment or transfer under or with respect to the Option and to take such other action as may be necessary in the opinion of
the Committee to 

  
 4 

 
satisfy all obligations for the payment of such withholding taxes. When a Participant who incurs income or social security tax liability in connection with the grant, exercise, vesting or payment
of any Award that is subject to income or social security tax withholding and the Participant is obligated to pay the Company the amount required to be withheld, the Committee may, in its sole discretion, allow the Participant to satisfy the minimum
withholding tax obligation by electing to have the Company withhold from the Shares to be issued that number of whole Shares having a Fair Market Value equal to the minimum amount required to be withheld, determined on the date that the amount of
tax to be withheld is to be determined. 
 8. Securities Laws. Upon the acquisition of any Shares pursuant to the
exercise of the Option, the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Agreement. 

9. Notices. Any notice necessary under this Agreement shall be addressed to the Company in care of its Secretary at the
principal executive office of the Company and to the Participant at the address appearing in the personnel records of the Company for the Participant or to either party at such other address as either party hereto may hereafter designate in writing
to the other. Any such notice shall be deemed effective upon receipt thereof by the addressee. 
 10. Choice of Law.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO CONFLICTS OF LAWS 

11. Option Subject to Plan and Stockholders Agreement. By entering into this Agreement the Participant agrees and
acknowledges that the Participant has received and read a copy of the Plan and the Stockholders Agreement. By entering into this Agreement, the Participant acknowledges that the Participant has become a party to the Stockholders Agreement (or shall,
as a condition to retaining this Award, promptly become a party to the Stockholders Agreement). The Option is subject to the Plan, including but not limited to the provisions of Section 13 relating to “Cancellation and Recission of
Awards”, and the Stockholders Agreement. The terms and provisions of the Plan and the Stockholders Agreement as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or
provision contained herein and a term or provision of the Plan or the Stockholders Agreement, the applicable terms and provisions of the Plan or the Stockholders Agreement, as applicable will govern and prevail. In the event of a conflict between
any term or provision of the Plan and any term or provision of the Stockholders Agreement, the applicable terms and provisions of the Stockholders Agreement will govern and prevail. 

  
 5 

 12. Signature in Counterparts. This Agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement. 

 

			
	VIRGIN AMERICA INC.
		
	By:	 	 

 Agreed and acknowledged as 

of the date first above written: 
  

 

  
 6 

 California Commissioner Rule 260.141.11 

 

	(a)	The issuer of any security upon which a restriction on transfer has been imposed pursuant to Sections 260.102.6, 260.141.10 or 260.534 shall cause a copy of this section to be delivered to each issuee or transferee of
such security at the time the certificate evidencing the security is delivered to the issuee or transferee. 

  

	(b)	It is unlawful for the holder of any such security to consummate a sale or transfer of such security, or any interest therein, without the prior written consent of the Commissioner (until this condition is removed
pursuant to Section 260.141.12 of these rules), except: 

  

	 	(1)	to the issuer; 

  

	 	(2)	pursuant to the order or process of any court; 

  

	 	(3)	to any person described in Subdivision (i) of Section 25102 of the Code or Section 260.105.14 of these rules: 

  

	 	(4)	to the transferor’s ancestors, descendants or spouse, or any custodian or trustee for the account of the transferor or the transferor’s ancestors, descendants, or spouse; or to a transferee by a trustee or
custodian for the account of the transferee or the transferee’s ancestors, descendants or spouse; 

  

	 	(5)	to holders of securities of the same class of the same issuer; 

  

	 	(6)	by way of gift or donation intervivos or on death; 

  

	 	(7)	by or through a broker-dealer licensed under the Code (either acting as such or as a finder) to a resident of a foreign state, territory or country who is neither domiciled in this state to the knowledge of the
broker-dealer, nor actually present in this state if the sale of such securities is not in violation of any securities law of the foreign state, territory or country concerned; 

 

	 	(8)	to a broker-dealer licensed under the Code in a principal transaction, or as an underwriter or member of an underwriting syndicate or selling group; 

 

	 	(9)	if the interest sold or transferred is a pledge or other lien given by the purchaser to the seller upon a sale of the security for which the Commissioner’s written consent is obtained or under this rule not
required; 

  

	 	(10)	by way of a sale qualified under Section 25111, 25112, 25113, or 25121 of the Code, of the securities to be transferred, provided that no order under Section 25140 or subdivision (a) of Section 25143
is in effect with respect to such qualification; 

  

	 	(11)	by a corporation to a wholly owned subsidiary of such corporation, or by a wholly owned subsidiary of a corporation to such corporation; 

 

	 	(12)	by way of an exchange qualified under Section 25111, 25112 or 25113 of the Code, provided that no order under Section 25140 or subdivision (a) of Section 25143 is in effect with respect to such
qualification; 

  

	 	(13)	between residents of foreign states, territories or countries who are neither domiciled nor actually present in this state; 

	 	(14)	to the State Controller pursuant to the Unclaimed Property Law or the administrator of the unclaimed property law of another state; or 

 

	 	(15)	by the State Controller pursuant to the Unclaimed Property Law or by the administrator of the unclaimed property law of another state if, in either such case, such person (i) discloses to potential purchasers at
the sale that transfer of the securities is restricted under this rule, (ii) delivers to each purchaser a copy of this rule, and (iii) advises the Commissioner of the name of each purchaser; 

 

	 	(16)	by a trustee to a successor trustee when such transfer does not involve a change in the beneficial ownership of the securities; 

  

	 	(17)	by way of an offer and sale of outstanding securities in an issuer transaction that is subject to the qualification requirements of Section 25110 of the Code but exempt from that qualification requirement by
subdivision (f) of Section 25102; 

 provided that any such transfer is on the condition that any certificate evidencing the
security issued to such transferee shall contain the legend required by this section. 
  

	(c)	The certificates representing all such securities subject to such a restriction on transfer, whether upon initial issuance or upon any transfer thereof, shall bear on their face a legend, prominently stamped or printed
thereon in capital letters of not less than 10-point size, reading as follows: 

 IT IS UNLAWFUL TO CONSUMMATE A SALE OR
TRANSFER OF THIS SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFORE, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA, EXCEPT AS PERMITTED IN THE COMMISSIONER’S RULES.

  
 8

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