Document:

EX-10.29

 Exhibit 10.29 
  

			
	June 22, 2010	  	David Cush CEO

 PRIVATE & CONFIDENTIAL 

Mr. John J. Varley 
 Dear John: 

We’re very pleased to offer you the position of Senior Vice President and General Counsel with Virgin America Inc. (the
“Company”). Below you’ll find the terms of our offer and the benefits you’ll receive when you begin working with us. 

Position: 
 Effective July 6th, 2010 or another
mutually agreed upon date, you will be employed as SVP General Counsel for the Company. This is a full-time, exempt position, to be based at our headquarters location near the San Francisco International Airport. You will be reporting to David Cush,
President and CEO. 
 Compensation and Bonus: 
 Your
starting base salary will be $275,000 per year. 
 You are also eligible to participate in an annual bonus plan each fiscal year. Your targeted annual bonus
percentage is 45% of your base salary. The annual bon :s amount for any fiscal year will be pro-rated based upon service and is wholly discretionary, and depends on the Company’s overall results and your individual contributions and
performance, as measured and determined by the Company. Any annual bonus for a calendar year will be paid no later than the end of the following calendar year. 

Notwithstanding the foregoing, your annual bonus will be guaranteed at 100% of target for your first twelve months of employment. For example, if you commence
employment on July 6, 2010 then (1) your annual bonus for 2010 will be guaranteed at 100% of target (although because your employment will commence mid-way through 2010, the total amount of your 2010 bonus will be pro-rated based on
service during 2010) and (2) one-half of your annual bonus for 2011 (corresponding to January through June 2011, the 7th through 12th
months of your employment) will be guaranteed at 100% of target and one-half of your annual bonus for 2011 (corresponding to July through December) will be discretionary, and depend on the company’s overall results and your individual
contributions and performance, as measured and determined by the Company. 
 You will also be eligible to receive a sign-on bonus of $50,000 upon your
obtaining a permanent local address and completion of the movement of your household goods to the Bay Area. Such bonus shall be paid in the first payroll period following your relocation to the Bay Area. 

You salary, all bonus payments and any other payments for which you may be entitled will be subject to. applicable State & Federal tax withholding.

 Benefits: 

Beginning after 30 days of employment, you will be eligible for the following benefits: (1) medical insurance, (2) dental insurance,
(3) long-term disability insurance, and (4) group life insurance policy of 3X base salary subject to a cap of $600,000 and subject to the terms .and conditions of the applicable plan•(which may require medical examination, among other
things). In addition, beginning after 90 days of employment, you will be eligible to participate in the Company’s 401(k:) retirement savings plan, subject to applicable terms and conditions. 

You and, to the extent applicable, your family, dependents and beneficiaries, shall be allowed to participate in all benefits, plans and programs subject to
the terms of the plan provisions, including improvements or modifications of the same, which are now, or may hereafter be, available to similarly situated Company employees holding the title of Senior Vice President. 

You will have a vacation entitlement of 20 days per calendar year. Vacation will accrue on a pro rata basis from• .the start of your employment with the
Company. Vacation time must be used in accordance with Company policy. 
 The official details contained in the applicable benefit plan documents will
govern in the event of any conflict or inconsistency between those documents and this offer. 
 Relocation: 

When you relocate to the company’s headquarters, we will reimburse you for the specific actual reasonable expenses of moving. We will also include
a “gross up” amount to account for your estimated income tax on such reimbursement. The foregoing is subject to and governed by additional details in our relocation policy, a copy of which will be provided to you. A relocation
representative will also contact you for individual counseling. 
 Equity: 

As approved by our Board of Directors, you will be granted an option (the “Option”) under our Stock Incentive Plan (the
“Plan”) to purchase 80,000 shares of Class G common stock. The Option exercise price will be $1.72, the fair market value of the shares on the date of grant, as determined by the Board of Directors. The Option will be subject to
vesting, as follows: 33.33% of the total shares subject to the Option will vest on each anniversary of your start date, such that the Option will be fully vested three years after that start date, provided that any vesting is subject to the
condition that you continue to be employed with Virgin America and are not under a notice of termination on any relevant vesting date. The Option will be subject to the terms and conditions of the Plan and the underlying option agreement.

 Additionally as approved by our Board of Directors you will be granted an option (the “Second Option”) under our Plan to purchase
200,000 shares of Class G common stock. 1he Second Option exercise price will be $1.72, the fair market value of the shares on the date of grant, as determined by the Board of Directors. The Second Option will be subject to vesting as follows:
33.33% of the total shares subject to the Option will vest on each anniversary of your .start date, such that the Second Option will be fully vested three years after that date, provided that any vesting is subject to the condition that you continue
to be employed with Virgin America and are not under a notice of termination on any relevant vesting date. Notwithstanding the foregoing, the Second Option, once vested, will only become exercisable if and when one of the following events has
occurred: (A) imme9iately prior to a Change of Control (as defined in the Plan) at a price per share of the Company’s Class A Common Stock of at least $5.00, (B) the occurrence of an initial public offering of the Company’s
Class A Common Stock at a price per share of at least $5.00, or (C) provided the Company’s Class A Common stock is publicly traded and • neither of the 

  
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preceding two conditions to .exercise under clauses (A) or (B) have previously been satisfied, the date on which the Company’s stock price exceeds and has exceeded $5.00 on a daily
moving average basis for the past six months. The Option will be subject to the terms and conditions of the Plan and the underlying option agreement. 

At Will Employment: 
 Your employment with us is
“at will” and can be terminated by either you or the Company at any time, for any reason, with or without notice. Any statements or representations to the contrary (and, indeed, any statements contradicting any provision in this
offer) should be regarded by you as ineffective. Any modification or change in your at will employment status may only occur by way of a written employment agreement signed by you and the Chief Executive .Officer of the Company. 

Should you be involuntarily terminated without Cause (as defined below) or should you terminate your employment for Good Reason (as defined below), and
provided that you deliver to the Company a signed settlement agreement and general release of claims in favor of the Company (the “Release”), and satisfy all conditions to make the Release effective within 60 days following your
separation from service, on 61st day following your termination, but in no event later than March 15 of the year following the year in which the termination of employment occurs, the Company shall pay to you a lump sum payment equal to 12
months of your then current base salary. For purposes of the foregoing, “Cause” shall mean (i) your engagement in misconduct which is materially injurious to the Company or its affiliates, (ii) your continued failure to
substantially perform your duties to the Company(other than by reason of illness, accident or other physical or mental incapacity or disability), (iii) your repeated dishonesty in the performance of your duties to the Company, (iv) your
commission of an act or acts constituting any fraud against, or material misappropriation or embezzlement from the Company or any of its affiliates, (v) your conviction, guilty plea or plea of nolo contendere to any
(y) crime involving moral turpitude or (z) offense that could result in a jail sentence of at least 30 days (other than a misdemeanor traffic offense) or (vi) your material breach of any confidentiality or non- competition covenant entered into between you and the Company; provided, however, that for purposes of clauses (ii) and (iii), no conduct will be deemed to constitute “Cause” unless
(i) such conduct is committed in bad faith, without reasonable belief that the action or inaction is in the best interests of the Company and (ii) if such conduct is capable of being cured, until you have received prior written notice of
the conduct, which persists after a 30-day cure period following the written notice. For purposes of the foregoing, “Good Reason” shall mean the termination of employment by you by reason of (i) a reduction in your pay or
benefits (unless such a reduction in pay or benefits applies generally to other employees at the same level), (ii) a significant diminution of your position, responsibilities or duties, (iii) the relocation by the Company or its successor
of your required work location more than 50 miles from Burlingame, CA, or (iv) a material breach by the Company of any provision of this agreement 

Section 409A: 
 To the extent (a) any
payments or benefits to which you become entitled under this offer letter, or under any agreement or plan referenced herein, in connection with your termination of employment with the Company constitute deferred compensation subject to
Section 409A of the Code and (b) you are deemed at the time of such termination of employment to be a “specified employee” under Section 409A of the Code, then such payments shall not be made or commence until the
earliest of (i) the expiration of the six (6)-month period measured from the date of your “separation from service” (as such term is at the time defined in Treasury Regulations under Section 409A of the Code) from the
Company; or (ii) the date of your death following such separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to you, including (without limitation) the
additional twenty percent (20%) tax for which you would otherwise be liable under. Section  

  
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409A(a)(j)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether
in a single sum or in installments) in the absence of this paragraph shall be paid to you or your beneficiary in one lump sum (without interest). Any termination of your employment is intended to constitute a “separation from
service” and will be determined consistent with the rules relating to a “separation from service” as such term is defined in Treasury Regulation Section 1.409A-1. It is intended that each installment of the payments
provided hereunder constitute separate “payments” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i). It is further intended that payments hereunder satisfy, to the greatest extent possible, the exemption from the
application of Section 409A of the Code (and any state law of similar effect) provided under. Treasury Regulation Section 1.409A-1(b)(4) (as a “short-term deferral”). To the extent that any provision of this offer letter
is ambiguous as to its compliance with Section 409A of the Code, the provision will be read in such a manner so that all payments hereunder comply with Section 409A of the Code. Except •as otherwise expressly provided herein, to the
extent any expense reimbursement or the provision of any in-kind benefit under this offer letter is determined to be subject to Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any
in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses), in no event shall any expenses be
reimbursed after the last day of the calendar year following the calendar year in which you incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for
another benefit. 
 Confidentiality/Proprietary Information: 

As a team member of the Company, you will have access to certain confidential information of the Company and you may, during the course of your
employment, develop certain information or inventions that will be the property of the company. To protect the interests of the Company, you will be required to sign the company’s standard “Team Member Invention Assignment and
Confidentiality Agreement” as a condition of your employment. 
 We wish to impress upon you that we do not want you to, and we hereby
direct you not to, bring with you any confidential or proprietary material of any former employer or to violate any other obligations you may have to any former employer. 

During the period that you render services to the Company, you agree to not engage in any employment, business or activity that is in any way competitive with
the business or proposed business of the Company. You will disclose to the Company in writing any other gainful employment, business or activity that you are currently associated with or participate in that competes in any way with the Company. You
will not assist any other person or organization which is competing with the Company or is preparing to engage in competition with the business or proposed business of the Company. You represent that signing this offer letter and commencing your
employment with the Company under the terms herein will not violate any agreement currently in place between yourself and current or past employers. 

Authorization to Work: 
 Within three (3) business
days of starting your new position you will need to present documentation demonstrating that you have authorization to work in the United States. 

Acceptance: 
 In consideration for and as a. condition of
your. employment, you agree to conform to the standards, policies, guidelines, practices, and procedures of the Company: 

  
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 Your acceptance of this offer represents the sole agreement between you and the Company, and supersedes in its
entirety any prior discussions or written agreements. Any other discussions, promises, representations and understandings are not to be considered part of this offer, unless expressed in writing by an authorized representative of the Company. 

Governing Law; Counterparts: 
 This Agreement shall be
governed by and construed in accordance with California law, without regard to conflicts of laws principles thereof and 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. 
 Please indicate your acceptance of our offer of employment by signing below and returning this letter by post, fax or
scanned PDF attachment to email no later than June 25, 2010. 
 We look forward to welcoming you on board. 

Sincerely 
 David Cush 

Agreed and accepted by: 
  

					
	 /s/ John Varley
	 		 	 6/23/10

	John Varley	 		 	Date

  
 5EX-10.31

 Exhibit 10.31 

Virgin America Inc. 

Management Incentive Compensation Plan 

Section 1 

Background, Purpose and Duration 

1.1 Effective Date: This Plan is effective as of January 1, 2009, as approved by the Board of Directors. 

1.2 Purpose of the Plan. The Plan is intended to increase shareholder value and the success of the Company by motivating participants
(1) to perform to the best of their abilities and (2) to achieve the Company’s objectives. The Plan’s goals are to be achieved by providing such participants with incentive awards based on the achievement of goals relating to the
performance of the Company, department and the individual. 
 Section 2 

Definitions 
 2.1
“Actual Award” means as to any Performance Period, the actual award (if any) payable to a Participant for the Performance Period. Each Actual Award is determined by the Payout Formula for the Performance Period, subject to the
Board’s authority under Section 3.5 to modify the award otherwise determined by the Payout Formula. 
 2.2 “Base
Salary” means as to any Performance Period, the Participant’s annualized salary rate for the Performance Period. Such Base Salary shall be before both (a) deductions for taxes or benefits, and (b) deferrals of compensation
pursuant to any Company-sponsored plans. 
 2.3 “Board” means the Board of Directors of the Virgin America Inc. 

2.4 “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation
there under shall include such section or regulation, any valid regulation promulgated there under, and any comparable provision of any future legislation or regulation amending supplementing or superseding such section or regulation. 

2.5 “Committee” means the Compensation Committee appointed by the Board to administer the Plan. “Company” means
Virgin America Inc., a Delaware corporation, or any successor thereto. 
 2.6 “Disability” means a permanent and total
disability determined in accordance with uniform and nondiscriminatory standards adopted by the Company from time to time. 
 2.7
“Fiscal Year” means any fiscal year of the company. 
 2.8 “Maximum Award” means as to any Actual Award to
any participant for any Performance Period is 200% of Target Award. 
 2.9 “Participant” means as to any Performance
Period, an Employee who is eligible to participate in the Plan for that Performance Period. 

 2.10 “Payout Formula” means as to any Performance Period, the formula or payout
matrix approved by the Board pursuant to Section 3.4 in order to determine the Actual Awards (if any) to be paid to Participants. 

2.11 “Performance Goals” means the goal(s) (or combined goal(s)) recommended by the Committee and approved by the Board (in
its discretion) to be applicable to a Participant for a Target Award for a Performance Period. As Determined by the Committee, the Performance Goals for any Target Award applicable to a Participant may provide for a targeted level or levels of
achievement using one or more of the following categories of measures: (a) Financial and Commercial (b) Operational Excellence (c) World Class Service (d) Employee Engagement, (e) Department Budgets and/or (f) any other
financial or non financial goals which the Board may deem appropriate. The Performance Goals may differ from Participant to Participant and from award to award. Prior to the Determination Date, the Committee, with the approval of the Board, shall
determine whether any significant element(s) shall be included in or excluded from the calculation of any Performance Goal with respect to any Participant. “Determination Date” is no later than 360 days after the end of the Performance
Period. 
 2.12 “Performance Period” normally means any 12 month fiscal period. However the Committee in its sole
discretion can extend or shorten the measurement period. 
 2.13 “Plan” means the Virgin America Inc. Management Incentive
Plan, as set forth in this document and as hereafter amended from time to time. 
 2.14 “Target Award” means the target
award payable under the Plan to a Participant for the Performance Period, expressed as a percentage of his or her Base Salary, as determined by the Committee in accordance with Section 3.3. 

Section 3 

Participation and Determination of Awards 

3.1 Participation. Participation will be limited to management and senior individual contributors in grade 9 and above. 

3.2 Determination of Performance Goals. The Committee, with approval of the Board, shall establish the Performance Goals for the
Performance Period. Such Performance Goals shall be set forth in writing. 
 3.3 Determination of Target Awards. The Committee, with
approval of the Board, shall establish a Target Award for each Participant and each target award shall be set forth in writing in the participant’s employment letter. 

3.4 Determination of Payout Formula or Formulae. On or prior to the Determination Date, the Committee, with approval of the Board,
shall establish a Payout Formula or Formulae for purposes of determining the Actual Award (if any) payable to each Participant. Each payout Formula shall (a) be in writing, (b) be based on a comparison of actual performance to the
Performance Goals, (c) provide for the payment of a Participant’s Target Award if the Performance Goals for the Performance Period are achieved, and (d) provide for an Actual Award greater than or less than the Participant’s
Target Award, depending upon the extent to which actual performance exceeds or falls below the Performance Goals. 

 Notwithstanding the preceding, no Participant’s actual Award under the Plan may exceed his or her Maximum
Award. 
 3.5 Determination of Actual Awards. After the end of each Performance Period, the Board shall certify in writing the extent
to which the Performance Goals applicable to Participants for the Performance Period were achieved or exceeded. The Actual Award for each Participant shall be determined by applying the Payout Formula to the level of actual Performance which has
been certified by the Committee. Notwithstanding any contrary provisions of the Plan, the Committee may recommend to the Board to (a) eliminate or reduce the Actual Award payable to any Participant below that which otherwise would be payable
under the Payout Formula, and (b) modify performance results and award for unique situations. 
 Section 4 

Payment of Awards 
 4.1
Right to Receive Payment. Each Actual Award that may become payable under the Plan shall be paid solely from the general assets of the Company. Nothing in this Plan shall be construed to create a trust or to establish or evidence any
Participant’s claim of any right other than as an unsecured general creditor with respect to any payment to which he or she may be entitled. A participant must be a regular active employee of the company at the time of the payout in order to
receive payment. Employees who are promoted or hired into a bonus eligible position during the year and prior to October 1 will have their bonus calculated and paid salary from the effective date of the promotion or hire. If an employee’s
target incentive percentage changes during the year, the payout will be prorated based on the period of time spent at each corresponding percentage. 

4.2 Timing of Payment. Payment of each Actual Award shall be made normally within 360 days after the end of the Performance Period
during which the Award was earned. 
 4.3 Timing of Payment. Each Actual Award normally shall be paid in cash (or its equivalent) in
a single lump sum. 
 4.4 Payment in the Event of Death. If a Participant dies prior to the payment of an Actual Award earned by him
or her prior to death for a prior Performance Period, the Award shall be paid to his or her estate. 
 4.5 Payment in the Event of
Disability. If a Participant becomes disabled prior to the payment of an Actual Award earned by him or her, the award will be prorated based upon actual time worked during the Performance Period. 

 Section 5 

Administration 
 5.1
Committee is the Administrator: The Plan shall be administered by the Committee. The Committee shall consist of not less than two (2) members of the Board. The members of the Committee shall be appointed from time to time by, and serve
at the pleasure of the Board. Each member of the committee shall qualify as an “outside director” under section 162(m) of the Code. If it is later determined that one or more members of the Committee do not so qualify, actions taken by the
Committee prior to such determination shall be valid despite such failure to qualify. 
 5.2 Committee Authority. It shall be the
duty of the Committee to administer the Plan in accordance with the Plan’s provisions. The Committee, with approval of the Board shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation,
including, but not limited to, the power to (a) recommend which Participants shall be granted awards, (b) recommend the terms and conditions of awards, (c) interpret the Plan and the awards, (d) adoption of such procedures and
subplans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or employed outside of the United States, (e) recommend adoption of rules for the administration, interpretation and application
of the Plan as are consistent there with, and (f) interpretation, amendment or revocation of any such rules. 
 5.3 Decisions
Binding. All determinations and decisions recommended by the Committee and approved by the Board, pursuant to the provisions of the Plan shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted
by law. 
 5.4 Delegation by the Committee. The Committee, with the approval of the Board, may delegate all or part of its authority
and powers under the Plan to one or more directors and/or officers of the Company; provided, however, that the Committee may delegate its authority and powers only with respect to awards that are not intended to qualify as performance-based
compensation under section 162(m) of the Code. 
 Section 6 

General Provisions 
 6.1
Tax Withholding: The Company shall withhold all applicable taxes from any Actual Award, including any federal, state and local taxes (including the Participant’s FICA obligation). 

6.2 No Effect on Employment or Service: Nothing in the Plan shall interfere with or limit in any way the right of the Company to
terminate any Participant’s employment or service at any time, with or without cause. The Company expressly reserves the right, which may be exercised at any time and without regard to when during a Performance Period such exercise occurs, to
terminate any individual’s performance with or without cause, and to treat him or her without regard to the effect which such treatment might have upon him or her as a Participant. 

6.3 Participation: No Employees shall have the right to be selected to receive an award under this Plan, or, having been so selected,
to be selected to receive a future award. 
 6.4 Indemnification: Each person who is or shall have been a member of the Committee, or
of the Board, shall be indemnified and held harmless by the Company against and from (a) any loss, cost, liability or expense that may be imposed upon or reasonably incurred by 

 
him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or
failure to act under the Plan or any award, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any claim, action, suit, or
proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power
that the Company may have to indemnify them or hold them harmless. Successors: All obligations of the Company under the Plan, with respect to awards granted hereunder, shall be biding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company. 

6.5 Beneficiary Designations: If permitted by the Committee, a Participant under the Plan may name a beneficiary or beneficiaries to
whom any vested but unpaid award shall be paid in the event of the Participant’s death. Each such designation shall revoke all prior designations by the Participant and shall be effective only if given in a form and manner acceptable to the
Committee. In the absence of any such designation, any vested benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 

6.6 Nontransferability: No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent provided in Section 6.6. All rights with respect to an award granted to a Participant shall be available during his or her lifetime only to the
Participant. 
 6.7 Deferrals: The Committee, in its sole discretion, may permit a Participant to defer receipt of the payment of
cash that would otherwise be delivered to a Participant under the Plan. Any such deferral elections shall be subject to such rules and procedures as shall be determined by the Committee in its sole discretion. 

Section 7 

Amendment, Termination and Duration 

7.1 Amendment, Suspension or Termination: The Board, in its sole discretion, may amend or terminate the Plan, or any part thereof, at
any time and for any reason. The amendment, suspension or termination of the Plan shall not, without the consent of the of the Plan shall not, without the consent of the Participant, alter or impair any rights or obligations under any Target Award
therefore granted to such participant. No award may be granted during any period suspension or after termination of the Plan. 
 7.2
Duration of the Plan: The Plan shall commence on the date specified herein, and subject to Section 7.1 (regarding the Board’s right to amend or terminate the Plan) shall remain in effect thereafter. 

 Section 8 

Legal Construction 
 8.1
Gender and Number: Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 

8.2 Severability: In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity
shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

8.3 Requirements of Law: The granting of awards under the Plan shall be subject to all applicable laws, rules and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required. 
 8.4 Governing Law: The Plan and
all awards shall be construed in accordance with and governed by the laws of the State of California, but without regard to its conflict of law provisions. 

Execution 
 IN WITNESS
WHEREOF, Virgin America by its duly authorized officer, has executed the Plan on the date indicated below. 
  

			
	Virgin America
	
	Dated:
		
	By:

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