Document:

Document

Exhibit 10.7

                                    

April 12, 2021

Hi Ursula Hurley,

JetBlue is successful because of Crewleaders like you who demonstrate passion, dedication, and a commitment to balancing the interests of our Company, Customers and Shareholders.

As you likely appreciate, the impact of COVID-19 has created an incredibly challenging period for our company, our industry, and all of us as individuals. That said, we want to recognize your significant efforts and contributions despite these challenges with an Executive Retention Award to encourage your continued active employment at JetBlue.

Executive Retention Award: You will be eligible to receive a one-time cash bonus amount of $115,000 on the later of (1) May 1, 2023, OR (2) 30 days following the lapse of CARES Act compensation restrictions, or subsequent legislation establishing similar limitations (such date, the “Payment Date”).  

You must remain actively employed with JetBlue through the Payment Date in order to be eligible to receive payment of the award.  However, should you retire or experience an involuntary termination prior to the Payment Date, any entitlement to the award will be determined by the Company’s Chief Executive Officer and Chief People Officer as the Company deems appropriate in its sole and exclusive discretion based on the circumstances at the time, with payment , if any, occurring on the Payment Date.

Thank you again for your continued extraordinary efforts during this unprecedented time. We look forward to your future contributions and continued success here at JetBlue. 

Best regards,

			
	/s/ Michael Elliott
	Michael Elliott
	Chief People OfficerDocument

   JETBLUE AIRWAYS CORPORATION 
2020 OMNIBUS EQUITY INCENTIVE PLAN
Notice of Performance Share Unit Grant
Participant:                         
Company:    JetBlue Airways Corporation
Notice:    You have been granted the following Performance Share Units in accordance with the terms of this notice, the Performance Share Unit Award Agreement attached hereto as Attachment A (such notice and agreement, collectively, this “Agreement”) and the Plan identified below.
Type of Award:    Other Stock-Based Awards, referred to herein as “Performance Share Units”.  A Performance Share Unit is an unfunded and unsecured obligation of the Company to deliver one Share or the cash equivalent thereof, as determined in accordance with this Agreement and subject to the terms and conditions of this Agreement and those of the Plan.  [   ]% of the Performance Share Units are “[EBITDA] Performance Share Units” and [   ]% of the Performance Share Units are “[Adjusted Debt to Cap Ratio] Performance Share Units” and [  ]% are “[ESG Index] Performance Share Units.”
Performance Goals:    (a) [EBITDA]; (b) [Adjusted Debt to Cap Ratio]; and (c) [ESG Index] (each as defined herein).
Performance Period:    Three (3) calendar year period from [  ] to [  ].
Plan:    JetBlue Airways Corporation 2020 Omnibus Equity Incentive Plan.
Grant:    Grant Date:                                                   
Number of Total Performance Share Units at Target: 
Acknowledgement
and Agreement:    The undersigned Participant acknowledges receipt of, and understands and agrees to, the terms and conditions of this Agreement and the Plan. 

Attachment A
JETBLUE AIRWAYS CORPORATION 
2020 OMNIBUS EQUITY INCENTIVE PLAN
Performance Share Unit Award Agreement

This Performance Share Unit Award Agreement, dated as of the Grant Date set forth in the Notice of Performance Share Unit Grant to which this Performance Share Unit Award Agreement is attached (the “Grant Notice”), is made between JetBlue Airways Corporation and the Participant set forth in the Grant Notice.  The Grant Notice is included in and made part of this Performance Share Unit Award Agreement.
1.Definitions.  Capitalized terms used but not defined herein have the meaning set forth in the Plan.  For purposes of this Agreement, the following terms have the following meanings:
(a) [Adjusted Debt to Cap Ratio means, with respect to a calendar year, the ratio of Adjusted Debt (defined as the sum of long term debt and finance lease obligations plus current maturities of long term debt and finance lease obligations plus aircraft operating lease liabilities) to Capitalization (defined as Stockholders Equity plus Adjusted Debt).] 
(b)    [EBITDA means, with respect to a calendar year, Earnings before Interest, Taxes, Depreciation and Amortization.] 
(c)    [ESG Index means a group of four equally weighted metrics comprised of (i) Sustainable Aviation Fuel Goal, (ii) Emission Goal, (iii)  Goal to increase addressable spend with diverse Business Partners (e.g., MWBEs - Minority-owned, Women-owned Business Enterprises, etc.) and (iv) Goal to Increase the percentage of Officer and Director requisitions with at least 2 underrepresented groups (race/ethnic minority & female candidates) interviewing - Diverse Slate Initiative.]  
(d)    “Disability” means long-term disability within the meaning of the Company’s long-term disability plan in which the Participant then participates, or, if there is no such plan, as determined by the Committee in good faith.  
(e)    “Earned Performance Share Units” means the total of (i) the Earned [Adjusted Debt to Cap Ratio] Performance Share Units; (ii) the Earned [EBITDA] Performance Share Units and (c) the Earned [ESG Index] Performance Share Units.    
(f)    “Earned [Adjusted Debt to Cap Ratio]” means the percentage determined in accordance with the following table, with the Earned [Adjusted Debt to Cap Ratio] between the levels set forth in such schedule determined as of December 31, [  ]:
									
	[Adjusted Debt to Cap Ratio] ([  ]%)
	Achievement	Payout	
	[  ]	[  ]%	Maximum
	[  ]	[  ]%	Target
	[  ]	[  ]%	Minimum

For the avoidance of doubt, (i) if [Adjusted Debt to Cap Ratio] exceeds the “Maximum” level, the Earned [Adjusted Debt to Cap Ratio] Percentage shall be [  ]%; and (ii) if [Adjusted Debt to Cap Ratio] is less than the “Minimum” level, the Earned [Adjusted Debt to Cap Ratio] Percentage shall be zero.
(g)    “Earned [Adjusted Debt to Cap Ratio] Performance Share Units” means the product of (i) the Earned [Adjusted Debt to Cap Ratio] Percentage, multiplied by (ii) the number of [Adjusted Debt to Cap Ratio] Performance Share Units set forth in the Grant Notice.
(h)    “Earned [EBITDA] Percentage” means the percentage determined in accordance with the following table based on [EBITDA], with the Earned [EBITDA] Percentage between the levels set forth in such schedule determined for the year ended December 31, [  ]:
									
	[EBITDA]	Earned [EBITDA] Percentage ([ ]%
	
	[  ]	[  ]	Maximum
	[  ]	[  ]	Target
	[  ]	[  ]	Minimum

    
For the avoidance of doubt, (i) if [EBITDA] exceeds the “Maximum” level, the Earned [EBITDA] Percentage shall be [  ]%; and (ii) if [EBITDA] is less than the “Minimum” level, the Earned [EBITDA] Percentage shall be zero.
(i)    “Earned [EBITDA] Performance Share Units” means the product of (i) the Earned [EBITDA] Percentage, multiplied by (ii) the number of [EBITDA] Performance Share Units set forth in the Grant Notice.
(j)    “Earned [ESG Index]” means the percentage determined in accordance with the following table, with the Earned [ESG Index] as follows:

															
	Metric	Weight	Earned ESG Index Percentage
			Minimum ([  ]%)	Target ([  ]%)	Maximum ([  ]%)
	[  ]	[  ]%	[  ]	[  ]	[  ]
	[  ]	[  ]%	[  ]	[  ]	[  ]
	[  ]	[  ]%	[  ]	[  ]	[  ]
	[  ]	[  ]%	[  ]	[  ]	[  ]
	ESG Index	[  ]%			

For the avoidance of doubt, (i) if metric exceeds the “Maximum” level, the Earned [ESG Index] Percentage shall be [  ]%; and (ii) if metric is less than the “Minimum” level, the Earned [ESG Index] Percentage shall be zero.
(k)    “Earned [ESG Index] Performance Share Units” means the product of (i) the Earned [ESG Index] Percentage, multiplied by (ii) the number of [ESG Index] Performance Share Units set forth in the Grant Notice.
(l)    “Retirement” means voluntary Termination of Service by the Participant on or after the date on which the sum of the Participant’s age and years of service as an employee of the Company and its affiliated companies is at least sixty-five (65); provided, however, that the Participant has both (i) attained the age of 55, and (ii) completed ten (10) years of service as an employee of the Company and its affiliated companies. 

2.    Grant of Performance Share Units.  Subject to the provisions of this Agreement and the provisions of the Plan, the Company hereby grants to the Participant, pursuant to the Plan, the number of Performance Share Units, comprised of [EBITDA] Performance Share Units, [Adjusted Debt to Cap Ratio] Performance Share Units and [ESG Index] Performance Share Units, set forth in the Grant Notice.
3.    Earned Performance Share Units.
(a)    Earned [EBITDA] Performance Share Units.  The [EBITDA] Performance Share Units shall become Earned [EBITDA] Performance Share Units in accordance with the provisions, and subject to the conditions, set forth in this Agreement.  Following issuance of the Company’s audited financial statements for calendar year [  ], the Committee shall determine and certify in writing the [EBITDA] attained, the Earned [EBITDA] Percentage and the number of Earned [EBITDA] Performance Share Units.     
(b)    Earned [Adjusted Debt to Cap Ratio] Performance Share Units.  The [Adjusted Debt to Cap Ratio] Performance Share Units shall become Earned [Adjusted Debt to Cap Ratio] Performance Share Units in accordance with the provisions, and subject to the conditions, set forth in this Agreement.  Following issuance of the Company’s audited financial statements for calendar year [  ], the Committee shall determine and certify in writing the [Adjusted Debt to Cap Ratio] attained, the [Adjusted Debt to Cap Ratio] Percentage and the number of Earned [Adjusted Debt to Cap Ratio] Performance Share Units.  
(c)    Earned [ESG Index] Performance Share Units.  The [ESG Index] Performance Share Units shall become Earned [ESG Index] Performance Share Units in accordance with the provisions, and subject to the conditions, set forth in this Agreement.  Following issuance of the Company’s audited financial statements for calendar year [  ], the Committee shall determine and certify in writing the [ESG Index metrics] attained, the Earned [ESG Index] and the number of Earned [ESG Index] Performance Share Units.    
(d)    Failure to Become Earned Performance Share Units.  To the extent that the Performance Share Units do not become Earned Performance Share Units pursuant to this Section 3, such Performance Share Units shall be forfeited.
(e)    Modification of Performance Goals per Standard Adjustment Framework. The Committee shall adjust or modify the calculation of any Performance Goal result in order to appropriately reflect the following events: (i) litigation or claim judgments or settlements; (ii) the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (iii) any significant domestic aviation-related terrorist incident or other safety event; (iv) acquisitions, mergers, divestitures or discontinued operations; (v) business interruptions due to external factors, including but not limited to (1) government sanctions, (2) issues caused by governmental budget issues or government furloughs, or (3) atypical level 3 (or higher) weather interruptions; and (vi) a significant change in fleet or business model.  The Committee may adjust the amount of Performance Share Units otherwise distributable or payable to the Participant based on considerations as the Committee may, in its discretion, determine.  
(f)    Termination of Service.  Upon the Participant’s Termination of Service under any circumstances, any Performance Share Units that have not been settled in accordance with Section 4 hereof prior to the date of such Termination of Service shall be immediately and unconditionally forfeited, without any action required by the Participant or the Company, except as follows:
                (i)            Disability, Death, Retirement.  Upon Termination of Service due to the Participant’s (A) Disability, (B) death or (C) Retirement, the Performance Share Units shall be eligible to become Earned Performance Share Units after such death, Disability or Retirement, and any Earned Performance Share Units shall be distributed in Shares or paid in cash, subject to the same terms and conditions had the Participant not incurred such Termination of Service, provided that such distribution or payment shall be pro-rated, as determined by the following formula: (x) the total number of Earned Performance Share Units multiplied by (y) a fraction, the numerator of which is the number of days from the date of the commencement of the Performance Period through the date of such Termination of Service and the denominator of which is 1,095 (such product of (x) and (y) shall be rounded down to the nearest whole Performance Share Unit). Such distribution referenced in this section (e)(i) shall be made reasonably promptly following the Committee’s certification of the performance for the Performance Period pursuant to Section 3. 

                (ii)           Termination of Service by Participant Other Than Due to Retirement or by Company Without Cause.  Upon Termination of Service (A) by the Participant other than due to Retirement or (B) by the Company for reasons other than Cause (in each case, other than as described in Section 3(e)(i)), the Committee, in its sole discretion, may (but is not obligated to) determine that the Performance Share Units (in whole or in part) shall be eligible to become Earned Performance Share Units, and any Earned Performance Share Units shall be distributed in Shares or paid in cash subject to the same terms and conditions had the Participant not incurred such Termination of Service, provided that such distribution or payment shall be pro-rated, as determined by the following formula: (x) the total number of Earned Performance Share Units multiplied by (y) a fraction, the numerator of which is the number of days from the date of the commencement of the Performance Period through the date of such Termination of Service and the denominator of which is 1,095 (such product of (x) and (y) shall be rounded down to the nearest whole Performance Share Unit). Such distribution referenced in this section (e)(ii) shall be made reasonably promptly following the Committee’s certification of the performance for the Performance Period pursuant to Section 3. 
(iii)         No Acceleration.  For the avoidance of doubt, any settlement pursuant to Section 3(e)(i) or (ii) shall under no circumstance be accelerated and distributed or paid at the time of any Termination of Service described in such sections, but instead may only be distributed or paid following the conclusion of the [  ] Performance Period and applicable determinations and certifications contemplated by this Section 3. 
4.    Settlement of Earned Performance Share Units.  During calendar year [  ], as soon as reasonably practicable following completion of all determinations and certifications contemplated by Section 3, but in no event later than such date required to comply with the short-term deferral exception under Treasury Regulations Section 1.409A-1(b)(4), or any successor regulation, subject to satisfaction of applicable tax withholding obligations in accordance with Section 6, the Company shall cause to be delivered to the Participant, without charge, one Share for each such Earned Performance Share Unit; provided, however, that the Committee may, in its discretion, elect to cause the payment of cash, or part cash and part Shares, in lieu of delivering only Shares in respect of such Earned Performance Share Units.  If a cash payment is made in lieu of delivering Shares, the amount of such payment shall be equal to the Fair Market Value of such Shares as of the trading date immediately prior to the date of such payment, less applicable taxes in accordance with Section 6.  Notwithstanding the foregoing provisions of this Section 4 to the contrary, if at the time of the Participant’s separation from service, the Participant is a “specified employee” within the meaning of Code Section 409A, any delivery of Shares or payment hereunder that constitutes a “deferral of compensation” under Code Section 409A and that would otherwise become due on account of such separation from service shall be delayed, and such Shares or payment shall be delivered or made in full upon the earlier to occur of (a) a date during the thirty-day period commencing six months and one day following such separation from service and (b) the date of the Participant’s death.
5.    Change in Control. The grant awarded under this Award Agreement is subject to the provisions of Section 15 of the Plan; provided, however, that if such Change in Control does not constitute a “change in control event,” within the meaning of Treasury Regulations Section 1.409A-3(i)(5), then any amounts otherwise payable under this Section 5 that constitute a “deferral of compensation” under Code Section 409A shall instead be paid at the time specified in Section 4 as if such Change in Control had not occurred.
6.    Taxes.  Delivery of the Shares underlying the Earned Performance Share Units upon settlement is subject to the Participant satisfying all applicable federal, state, local and foreign taxes (including the Participant’s FICA obligation).  The Company shall have the power and the right to (i) deduct or withhold from any Shares or amounts of cash otherwise deliverable or payable to the Participant pursuant to the Earned Performance Share Units or otherwise (provided, however, that the amount of any Shares so withheld shall not exceed the maximum statutory tax rate in the Participant’s relevant jurisdiction, based on the applicable rates of the relevant tax authorities (e.g., federal, state, local), including the participant’s share of payroll or similar taxes, and there is an applicable statutory tax withholding requirement), or (ii) require the Participant to remit to the Company, an amount in cash, in each case, sufficient to satisfy all such applicable taxes, pursuant to any procedures, and subject to any limitations as the Committee may prescribe and subject to applicable law, based on the Fair Market Value of the Shares on the payment date, as applicable.  The Company or an Affiliate may, in the discretion of the Committee, provide for alternative arrangements to satisfy applicable tax withholding requirements in accordance with Section 17 of the Plan.  Regardless of any action the Company or any Affiliate takes with respect to any or all tax 

withholding obligations, the Participant acknowledges that the ultimate liability for all such taxes is and remains the Participant’s responsibility. 
7.    No Rights as a Shareholder Prior to Issuance of Shares.  Neither the Participant nor any other person shall become the beneficial owner of the Shares underlying the Performance Share Units, nor have any rights to dividends or other rights as a shareholder with respect to any such Shares, until and after such Shares, if any, have been actually issued to the Participant and transferred on the books and records of the Company or its agent in accordance with the terms of the Plan and this Agreement.
8.    Transferability.  The Performance Share Units shall not be transferable otherwise than by will or the laws of descent and distribution; provided, however, that the Committee may, in its discretion, permit the Performance Share Units to be transferred in accordance with the Plan, subject to such conditions and limitations as the Committee may impose. 
9.    No Right to Continued Employment.   Neither the Performance Share Units nor any terms contained in this Agreement shall confer upon the Participant any rights or claims except in accordance with the express provisions of the Plan and this Agreement, and shall not give the Participant any express or implied right to be retained in the employment or service of the Company or any Affiliate for any period or in any particular position or at any particular rate of compensation, nor restrict in any way the right of the Company or any Affiliate, which right is hereby expressly reserved, to modify or terminate the Participant’s employment or service at any time for any reason.  The Participant acknowledges and agrees that any right to Earned Performance Share Units shall be earned only by continuing as an employee of the Company or an Affiliate at the will of the Company or such Affiliate and satisfaction of other applicable terms and conditions contained in the Plan and this Agreement, and not through the act of being hired or being granted the Performance Share Units hereunder.
10.    The Plan; Entire Agreement.  By accepting any benefit under this Agreement, the Participant and any person claiming under or through the Participant shall be conclusively deemed to have indicated his or her acceptance and ratification of, and consent to, all of the terms and conditions of the Plan and this Agreement and any action taken under the Plan by the Board, the Committee or the Company, in any case in accordance with the terms and conditions of the Plan.  This Agreement is subject to all the terms, provisions and conditions of the Plan, which are incorporated herein by reference, and to such rules, policies and regulations as may from time to time be adopted by the Committee.  This Agreement and the Plan contain the entire agreement of the parties relating to the matters contained herein and supersede all prior agreements and understandings, oral or written, between the parties with respect to the subject matter hereof.  In the event of any conflict between the provisions of the Plan and this Agreement, the provisions of the Plan shall control, and this Agreement shall be deemed to be modified accordingly.  The Plan and the prospectus describing the Plan can be found on the Company’s Human Resources (“People Department”) intranet.  A paper copy of the Plan and the prospectus shall be provided to the Participant upon the Participant’s written request to the Company at the address set forth in Section 13 hereof.
11.    Compliance with Laws and Regulations.  
(a)       The Performance Share Units and the obligation of the Company to deliver any Shares hereunder shall be subject in all respects to (i) all applicable Federal and state laws, rules and regulations; and (ii) any registration, qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Committee shall, in its discretion, determine to be necessary or applicable.  Moreover, the Company shall not deliver any certificates or other indication of ownership for Shares to the Participant or any other person pursuant to this Agreement if doing so would be contrary to applicable law.  If at any time the Company determines, in its discretion, that the listing, registration or qualification of Shares upon any national securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable, the Company shall not be required to deliver any certificates or other indication of ownership for Shares to the Participant or any other person pursuant to this Agreement unless and until such listing, registration, qualification, consent or approval has been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Company.
(b)       It is intended that any Shares hereunder shall have been registered under the Securities Act.  If the Participant is an “affiliate” of the Company, as that term is defined in Rule 144 under the 

Securities Act (“Rule 144”), the Participant may not sell such Shares received except in compliance with Rule 144.  Certificates representing Shares issued to an “affiliate” of the Company may bear a legend setting forth such restrictions on the disposition or transfer of the Shares as the Company deems appropriate to comply with federal and state securities laws.
(c)       If at any time the Shares are not registered under the Securities Act, and/or there is no current prospectus in effect under the Securities Act with respect to the Shares, the Participant shall execute, prior to the delivery of any Shares to the Participant by the Company pursuant to this Agreement, an agreement (in such form as the Company may specify) in which the Participant represents and warrants that the Participant is acquiring the Shares acquired under this Agreement for the Participant's own account, for investment only and not with a view to the resale or distribution thereof, and represents and agrees that any subsequent offer for sale or distribution of any kind of such Shares shall be made only pursuant to either (i) a registration statement on an appropriate form under the Securities Act, which registration statement has become effective and is current with regard to the Shares being offered or sold; or (ii) a specific exemption from the registration requirements of the Securities Act, but in claiming such exemption the Participant shall, prior to any offer for sale of such Shares, obtain a prior favorable written opinion, in form and substance satisfactory to the Company, from counsel for or approved by the Company, as to the applicability of such exemption thereto.
12.          Recoupment Policy.  The Participant acknowledges that the Performance Share Units covered by this Agreement and the Performance Share Units granted hereunder are subject to Sections 20 and 21 of the Plan, including the Company’s recoupment policy, as may be amended or superseded from time to time by the Board or the Committee or otherwise in response to changes in applicable laws, rules or regulations.
13.          Notices.  All notices by the Participant or the Participant’s successors or permitted assigns shall be addressed to JetBlue Airways Corporation, 27-01 Queens Plaza North, Long Island City, New York 11101, Attention:  General Counsel, or such other address as the Company may from time to time specify.  All notices to the Participant shall be addressed to the Participant at the Participant’s address in the Company's records.
14.    Other Plans.  The Participant acknowledges that any income derived from the Earned Performance Share Units shall not affect the Participant’s participation in, or benefits under, any other benefit plan or other contract or arrangement maintained by the Company or any Affiliate.
15.    Section 409A.  This Agreement and any payment or delivery of Shares under this Agreement are intended to be exempt from or to comply with Code Section 409A and shall be administered and construed in accordance with such intent.  In furtherance, and not in limitation, of the foregoing:  (a) in no event may the Participant designate, directly or indirectly, the calendar year of any payment or delivery of Shares to be made hereunder; and (b) notwithstanding any other provision of this Agreement to the contrary, a Termination of Service hereunder shall mean and be interpreted consistent with a “separation from service” within the meaning of Code Section 409A with respect to any payment or delivery of Shares hereunder that constitutes a “deferral of compensation” under Code Section 409A that becomes due on account of such separation from service.  Notwithstanding any other provision of this Agreement, in no event shall the Company, any of its affiliates, or and of its or their directors, officers, employees or independent contractors have any liability to the Participant as a result of the failure of this Agreement to comply with Code Section 409A.
16.    Electronic Delivery and Signatures.  The Company may, in its sole discretion, decide to deliver any documents related to the Performance Share Units, this Agreement or to participation in the Plan or to future grants that may be made under the Plan by electronic means or to request the Participant's consent to participate in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.  If the Company establishes procedures of an electronic signature system for delivery and acceptance of Plan documents (including this Agreement or any Award Agreement like this Agreement), the Participant hereby consents to such procedures and agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his manual signature.

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