Document:

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                                                                   EXHIBIT 10.6

                     EMPLOYEE BENEFITS SEPARATION AGREEMENT

                                  by and among

                           CONTINENTAL AIRLINES, INC.,

                           EXPRESSJET HOLDINGS, INC.,

                               XJT HOLDINGS, INC.

                                       and

                            EXPRESSJET AIRLINES, INC.

                        Dated as of April _________, 2002

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                     EMPLOYEE BENEFITS SEPARATION AGREEMENT

                                    RECITALS

         This EMPLOYEE BENEFITS SEPARATION AGREEMENT (this "Employee Benefits
Separation Agreement"), dated as of April [ ], 2002, is by and among Continental
Airlines, Inc., a Delaware corporation ("Continental"), ExpressJet Holdings,
Inc., a Delaware corporation and a wholly owned subsidiary of Continental
("ExpressJet Holdings"), XJT Holdings, Inc. (formerly ExpressJet Airlines,
Inc.), a Delaware corporation and a wholly owned subsidiary of ExpressJet
Holdings ("XJT Holdings"), and ExpressJet Airlines, Inc. (formerly New
ExpressJet Airlines, Inc.), a Delaware corporation and a wholly owned subsidiary
of XJT Holdings ("ExpressJet Airlines").

         WHEREAS, Continental, ExpressJet Holdings, XJT Holdings and ExpressJet
Airlines desire to enter into this Employee Benefits Separation Agreement with
respect to implementation of matters concerning employees and the separation of
employee benefits in connection with the contemplated Initial Public Offering
and subsequent divestiture and other matters set forth in the Initial Public
Offering Agreement by and between Continental and ExpressJet Holdings dated as
of _______________, 2002 (the "IPO Agreement");

         NOW, THEREFORE, in consideration of the premises, the mutual covenants
hereinafter expressed, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

                                    ARTICLE I
                                   DEFINITIONS

         Capitalized terms used in this Employee Benefits Separation Agreement
shall have the same meanings as are ascribed to such terms under the IPO
Agreement, except as otherwise specifically indicated below:

         1.1 401(k) SAVINGS PLAN, when immediately preceded by "Continental,"
means the Continental Airlines, Inc. 401(k) Savings Plan. When immediately
preceded by "Holdings," 401(k) Savings Plan means the defined contribution plan
to be established by Holdings pursuant to Section 2.3.

         1.2 ADMINISTRATIVE SERVICES AGREEMENT means the Administrative Support
and Information Services Provisioning Agreement in effect among Continental,
ExpressJet Holdings, and ExpressJet Airlines.

         1.3 ASO CONTRACT means an administrative services only contract with a
third-party administrator that relates to any of the Continental Plans.

         1.4 CAPACITY PURCHASE PERIOD means the period of time during which that
certain Amended and Restated Capacity Purchase Agreement dated as of April ____,
2002, among Continental, ExpressJet Holdings, XJT Holdings, and ExpressJet
Airlines is in effect.

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         1.5 CARP means the Continental Retirement Plan.

         1.6 COBRA means the continuation coverage requirements for "group
health plans" under Title X of the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended, and as codified in Section 4980B of the Code and
Sections 601 through 608 of ERISA.

         1.7 COBRA CONTINUEE is defined in Section 5.5(a).

         1.8 COMMITTEE means the Human Resources Committee of Continental's
Board of Directors.

         1.9 CONTINENTAL has the meaning set forth in the Preamble.

         1.10 CONTINENTAL EXECUTIVE BENEFIT PLANS means the following: the Turbo
Program, the Continental Management Bonus Program, the Long Term Incentive
Program, and the Retention Program.

         1.11 EMPLOYEE BENEFITS SEPARATION AGREEMENT has the meaning set forth
in the Preamble.

         1.12 ENROLLED ACTUARY means the enrolled actuary that is providing
regular and ongoing actuarial services in connection with a particular
Continental Plan at the time actuarial services are needed pursuant to this
Employee Benefits Separation Agreement with respect to such plan or a
corresponding Holdings Plan; provided, however, that if there is no such
actuary, the enrolled actuary shall mean Hewitt Associates.

         1.13 ERISA means the Employee Retirement Income Security Act of 1974,
as amended from time to time, together with the rules and regulations
thereunder.

         1.14 EXCLUSIVITY ENDING DATE means the day immediately preceding the
earlier of (a) January 1, 2006, and (b) the first date on which Continental is
free to utilize regional jet capacity of a carrier other than ExpressJet
Airlines in or out of Continental's hubs.

         1.15 EXPRESSJET AIRLINES has the meaning set forth in the Preamble.

         1.16 EXPRESSJET HOLDINGS has the meaning set forth in the Preamble.

         1.17 FLEXIBLE BENEFITS PLAN, when immediately preceded by
"Continental," means, collectively or individually, as the context shall imply,
the Continental Airlines, Inc. Healthcare Reimbursement Program, the Continental
Airlines, Inc. Child and Dependent Care Reimbursement Program, any cafeteria
plan or premium conversion plan maintained by Continental pursuant to Section
125 of the Code, and the Continental Vacation Buying and Selling Program. When
immediately preceded by "Holdings," Flexible Benefits Plan means the
corresponding programs to be established by Holdings pursuant to Section 2.3.

         1.18 FLIGHT PASS PRIVILEGES, when immediately preceded by
"Continental," means space-available flight privileges and vacation and buddy
passes on each airline operated by Continental or Continental Micronesia, Inc.
(for so long as Continental Micronesia, Inc. remains

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a wholly owned subsidiary of Continental). When immediately preceded by
"Holdings," Flight Pass Privileges means space-available flight privileges and
vacation and buddy passes on each airline operated by Holdings or a Holdings
Affiliate.

         1.19 FMLA means the Family and Medical Leave Act of 1993, as amended.

         1.20 GROUP INSURANCE POLICY means a group insurance policy that
provides insured benefits under a Continental Welfare Plan.

         1.21 HIPAA means the Health Insurance Portability and Accountability
Act of 1996, as amended.

         1.22 HIPAA BENEFICIARY is defined in Section 5.5(b).

         1.23 HMO means a health maintenance organization that provides benefits
under the Continental Welfare Plans or the Holdings Welfare Plans.

         1.24 HMO AGREEMENTS is defined in Section 8.3(c)(i).

         1.25 HOLDINGS means ExpressJet Holdings, XJT Holdings, and ExpressJet
Airlines, collectively.

         1.26 HOLDINGS 401(k) PARTICIPANTS is defined in Section 4.3.

         1.27 HOLDINGS 2002 STOCK INCENTIVE PLAN means the stock incentive plan
established by ExpressJet Holdings pursuant to Section 2.3.

         1.28 HOLDINGS ADMINISTRATIVE EMPLOYEES is defined in Section 8.1.

         1.29 HOLDINGS EMPLOYEE means any individual who, as of the IPO Date,
is: (a) either actively employed by or on Leave of Absence from Holdings or a
Holdings Affiliate; or (b) neither actively employed by, nor on a Leave of
Absence from, Holdings or a Holdings Affiliate, but whose most recent active
employment (as between Continental (and Continental Affiliates ) and Holdings
(and Holdings Affiliates)) was with Holdings or a Holdings Affiliate or a
predecessor thereto. Any individual employed by Holdings or a Holdings Affiliate
after the IPO Date shall also be a Holdings Employee. Further, an alternate
payee under a QDRO, an alternate recipient under a QMCSO, a beneficiary or a
covered dependent, in each case, of an employee or former employee described in
either of the preceding two sentences shall also be a Holdings Employee, but
only in such capacity, and only with respect to such employee's or former
employee's benefit under the Continental Plans.

         1.30 IMMEDIATELY PRECEDING THE IPO DATE means 11:59 P.M. City of
Houston time on the day immediately preceding the IPO Date.

         1.31 INCENTIVE PLAN 2000 means the Continental Airlines, Inc. Incentive
Plan 2000, as amended from time to time.

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         1.32 IPO means the Initial Public Offering.

         1.33 IPO AGREEMENT has the meaning set forth in the Preamble.

         1.34 IPO DATE means the date of consummation of the IPO.

         1.35 LEAVE OF ABSENCE means any authorized leave of absence, including
leaves of absence for short-term disability, long-term disability and workers'
compensation.

         1.36 LIABILITIES shall have the same meaning as is assigned to the term
"Losses" under the IPO Agreement.

         1.37 LONG TERM INCENTIVE PROGRAM means the Continental Airlines, Inc.
Long Term Incentive Performance Award Program adopted under the Incentive Plan
2000, as amended from time to time.

         1.38 MANAGEMENT BONUS PROGRAM, when immediately preceded by
"Continental," means the Continental Airlines, Inc. Management Bonus Program.
When immediately preceded by "Holdings," Management Bonus Program means the
bonus program established by Holdings pursuant to Section 2.3.

         1.39 MEDICAL PLAN, when immediately preceded by "Continental," means
the portion of the Continental Welfare Plans that provides medical benefits to
employees and retirees (and their respective eligible dependents) of Continental
and certain Continental Affiliates established, maintained, agreed upon or
assumed by Continental or a Continental Affiliate. When immediately preceded by
"Holdings," Medical Plan means the portion of the plan to be established by
Holdings pursuant to Section 2.3 that corresponds to the Continental Medical
Plan.

         1.40 ON-TIME BONUS PROGRAM, when immediately preceded by "Continental,"
means the Continental Airlines, Inc. On-Time Bonus Program. When immediately
preceded by "Holdings," On-Time Bonus Program means the on-time bonus program to
be established by Holdings pursuant to Section 2.3.

         1.41 OPTION, when immediately preceded by "Continental," means a
compensatory option to purchase Continental Common Stock. When immediately
preceded by "Holdings," Option means a compensatory option to purchase Holdings
Common Stock.

         1.42 PARTICIPATING COMPANY means (a) Continental, and (b) any Person,
other than an individual, that is participating in a particular Continental Plan
or has any employees who are participating in such Continental Plan.

         1.43 PERFECT ATTENDANCE PROGRAM, when immediately preceded by
"Continental," means the Continental Airlines, Inc. Perfect Attendance Program.
When

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immediately preceded by "Holdings," Perfect Attendance Program means the perfect
attendance program to be established by Holdings pursuant to Section 2.3.

         1.44 PILOT LTD PLAN, when immediately preceded by "Continental," means
the Continental Airlines, Inc. Long Term Disability Plan for Pilots. When
immediately preceded by "Holdings," Pilot LTD Plan means the corresponding long
term disability plan to be established by Holdings pursuant to Section 2.3.

         1.45 PLAN, when immediately preceded by "Continental" or "Holdings,"
means any plan, policy, program, payroll practice, on-going arrangement,
contract, trust, annuity contract, insurance policy or other agreement or
funding vehicle providing benefits to employees, former employees, dependents of
employees or former employees, or directors of Continental and/or Holdings, as
applicable.

         1.46 PROFIT SHARING PLAN, when immediately preceded by "Continental,"
means the Continental Airlines, Inc. Profit Sharing Plan. When immediately
preceded by "Holdings," Profit Sharing Plan means the profit sharing plan to be
established by Holdings pursuant to Section 2.3.

         1.47 QDRO means a domestic relations order which qualifies under
Section 414(p) of the Code and Section 206(d) of ERISA and which creates or
recognizes an alternate payee's right to, or assigns to an alternate payee, all
or a portion of the benefits payable to a participant under a Continental Plan.

         1.48 QMCSO means a medical child support order which qualifies under
Section 609(a) of ERISA and which creates or recognizes an alternate recipient's
right to, or assigns to an alternate recipient the right to, receive benefits
for which a participant or beneficiary is eligible under a Continental Medical
Plan.

         1.49 RETENTION PROGRAM means the Continental Airlines, Inc. Officer
Retention and Incentive Award Program adopted under the Incentive Plan 2000, as
amended from time to time.

         1.50 TURBO PROGRAM means the Continental Airlines, Inc. Executive Bonus
Performance Award Program adopted under the Incentive Plan 2000, as amended from
time to time, and any other special bonus program adopted for participants in
the Executive Bonus Performance Award Program.

         1.51 UATP means Universal Air Travel Plan benefits granted to certain
employees and directors and the cards issued for the exercise of such benefits
(or, in the event of discontinuance of the UATP program, a similar charge card)
permitting the purchase of air travel through direct billing to Continental or
any successor thereto or Holdings or any successors thereto, as applicable.

         1.52 VEBA, when immediately preceded by "Continental," means the trust
established pursuant to the Trust Agreement Made as of the 12th Day of November,
1999 Between Continental Airlines, Inc. and Frank Russell Trust Company or any
successor trust established on behalf of the Continental Pilot LTD Plan. When
immediately preceded by

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"Holdings," VEBA means the corresponding trust to be established by Holdings
pursuant to Section 2.3.

         1.53 WELFARE PLANS, when immediately preceded by "Continental," means
the employee welfare benefit plans, as defined in Section 3(1) of ERISA,
sponsored by Continental or a Continental Affiliate and any trust associated
with one or more of such plans. When immediately preceded by "Holdings," Welfare
Plans means the employee welfare benefit plans and associated trusts, if any, to
be established by Holdings pursuant to Section 2.3 that correspond to the
respective Continental Welfare Plans.

         1.54 XJT HOLDINGS has the meaning set forth in the Preamble.

                                   ARTICLE II
                               GENERAL PRINCIPLES

         2.1 ASSUMPTION OF LIABILITIES. Except as otherwise provided herein and
except to the extent a Liability is satisfied through the Continental Plans
and/or the Holdings Plans, notwithstanding any other provision in the IPO
Agreement to the contrary, (a) all Liabilities related to employees (or any
alleged employment relationships), independent contractors, consultants, or
advisers, of Holdings Businesses arising from events occurring either before or
after the IPO Date shall be the responsibility of Holdings, including
Liabilities incurred by reason of the transactions contemplated under the IPO
Agreement, but excluding (i) any losses for which a party is entitled to
indemnification pursuant to Article 5 of the IPO Agreement, and (ii)
Continental's obligations pursuant to Section 5.1 and Section 6.1(f) of this
Employee Benefits Separation Agreement, and (b) Holdings hereby indemnifies and
holds Continental harmless from and against any and all such Liabilities
described in the foregoing clause (a). Continental, in its sole discretion,
shall determine if and to what extent Liabilities are related to the
circumstances described in clause (a) of the preceding sentence.

         2.2 HOLDINGS PARTICIPATION IN CONTINENTAL PLANS.

                  (a) PERIOD OF PARTICIPATION. Except as otherwise provided
herein, Holdings and each Holdings Affiliate which is a Participating Company in
a Continental Plan shall cease such participation effective Immediately
preceding the IPO Date, and neither Holdings nor any Holdings Affiliate shall be
a Participating Company in any Continental Plan as of any time thereafter.

                  (b) HOLDINGS' GENERAL OBLIGATIONS AS PARTICIPATING COMPANY.
Holdings shall perform with respect to its participation in the Continental
Plans, and shall cause each Holdings Affiliate with respect to its participation
in the Continental Plans to perform, the duties of a Participating Company as
set forth in the Continental Plans or any procedures adopted pursuant thereto,
including: (i) assisting in the administration of claims to the extent requested
by the claims administrator of the applicable Continental Plan; (ii) cooperating
fully with Continental Plan auditors, benefit personnel, and benefit vendors;
(iii) preserving the confidentiality of all financial arrangements Continental
has or may have with any vendors, claims administrators, trustees or any other
entity or individual with whom Continental has entered into an agreement
relating to the Continental Plans; and (iv) preserving the confidentiality of
all participant health information.

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                  (c) CONTINENTAL'S GENERAL OBLIGATIONS AS PLAN SPONSOR. Except
as otherwise provided in the governing documents for each Continental Plan,
Continental shall retain the responsibility to administer, or cause to be
administered, in accordance with their terms and applicable law, the Continental
Plans, and at all times Continental shall have the sole discretion and authority
to interpret the Continental Plans as set forth therein.

         2.3 ESTABLISHMENT OF HOLDINGS PLANS. Subject to the terms and
conditions set forth in this Employee Benefits Separation Agreement and to the
extent that Holdings has not already done so prior to April 1, 2002, Holdings
shall use reasonable best efforts to adopt or cause to be adopted for the
benefit of the Holdings Employees, (a) effective as of January 1, 2002, the
Holdings Management Bonus Program and the Holdings Profit Sharing Plan, (b)
effective as of the IPO Date, the Holdings 2002 Stock Incentive Plan, the
Holdings On-Time Bonus Program, the Holdings Flexible Benefits Plan, the
Holdings Welfare Plans, the Holdings Pilot LTD Plan, the Holdings VEBA, and the
Holdings Flight Pass Privileges, (c) effective as of the date described in
Section 4.2, the Holdings 401(k) Savings Plan, and (d) effective as of July 1,
2002, the Holdings Perfect Attendance Program. Except as otherwise provided by
any collective bargaining agreements, Holdings shall use reasonable best efforts
to cause the Holdings Flexible Benefits Plan and the Holdings Welfare Plans as
in effect as of the IPO Date to be substantially similar in all material
respects to the corresponding Continental Plans in effect Immediately preceding
the IPO Date.

         2.4 PROCEDURES FOR AMENDMENTS TO PLANS, PLAN DESIGNS, ADMINISTRATIVE
PRACTICES AND VENDOR CONTRACTS. Continental shall at all times retain the
authority to, within its sole discretion and in accordance with the terms of the
governing Continental Plan documents: (a) amend all Continental Plans; (b)
modify the administration or operation of any Continental Plan; and (c) modify,
adopt or terminate any vendor or service provider contract subject to the terms
of Section 8.3.

         2.5 REASONABLE BEST EFFORTS. Continental and Holdings shall use their
reasonable best efforts to enter into any necessary agreements and take such
other actions as are necessary (including maintaining necessary participant
records) to implement the arrangements contemplated by this Employee Benefits
Separation Agreement.

         2.6 REGULATORY COMPLIANCE. Continental and Holdings shall, in
connection with the actions taken pursuant to this Employee Benefits Separation
Agreement, use reasonable best efforts to cooperate in making any and all
appropriate filings required under the Code, ERISA and any applicable securities
laws, implementing all appropriate communications with participants,
transferring appropriate records and taking all such other actions as may be
necessary and appropriate to implement the provisions of this Employee Benefits
Separation Agreement in a timely manner.

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                                   ARTICLE III
                              DEFINED BENEFIT PLANS

         3.1 CARP.

                  (a) CESSATION OF CREDITED SERVICE. No participant in CARP
shall receive credit under such plan for purposes of eligibility, vesting,
credited service, or benefit accrual on account of service performed as an
employee of Holdings or any Holdings Affiliate after the IPO Date except to the
extent and only to the extent the crediting (i) is required pursuant to the Code
or ERISA, (ii) is required pursuant to enforceable terms of a collective
bargaining agreement or (iii) results from the limited continued coverage under
CARP pursuant to paragraph (b) below. Notwithstanding the foregoing, solely with
respect to any participant in CARP who is employed by Holdings or a Holdings
Affiliate as of the IPO Date, Continental shall use reasonable best efforts to
cause CARP to allow such individual to be eligible for a lump sum distribution
under CARP in a manner consistent with the age and service requirements of CARP.

                  (b) LIMITED CONTINUED PARTICIPATION. Notwithstanding the
provisions of Section 2.2, the coverage by CARP of certain Holdings Employees
pursuant to Section 2.24 of CARP as of Immediately preceding the IPO Date shall
continue with respect to such Holdings Employees from and after the IPO Date
until the date that Continental no longer owns, directly or indirectly, any
ownership interest in Holdings; provided, however, that such coverage may
terminate at such earlier date as Continental may determine in its sole
discretion. During the period of such continued coverage, such Holdings
Employees shall continue to be credited with service and accrue benefits under
CARP in the same manner as prior to the IPO Date.

                  (c) HOLDINGS REIMBURSEMENT. From time to time as determined by
Continental, Holdings shall reimburse Continental for (1) the cost of benefits
accruing under CARP with respect to the continued coverage of Holdings Employees
pursuant to paragraph (b) above, to the extent that such benefit accrual is
attributable to credited service arising from employment with Holdings or a
Holdings Affiliate during such period of time and (2) the cost associated with
the lump sum eligibility described in paragraph (a) above. The cost of the items
described in the preceding sentence shall be computed and certified by the
Enrolled Actuary for CARP (whose determination shall be binding and conclusive
on the parties hereto), and such cost as computed (together with the cost of
such actuarial computations) shall be borne solely by Holdings.

                                   ARTICLE IV
                            DEFINED CONTRIBUTION PLAN

         4.1 CONTINENTAL 401(k) SAVINGS PLAN. Holdings Employees shall continue
to participate in the Continental 401(k) Savings Plan without gap or
interruption until October 1, 2002; provided, however, that such participation
may be extended beyond such date with the consent of Continental. For the period
from and after the IPO Date of such continued participation, unless Continental
and Holdings have mutually agreed to an alternative administrative arrangement,
Holdings shall remit directly to the trustee of the Continental 401(k) Savings
Plan, (a) the contributions to such plan made by or on behalf of Holdings
Employees

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and (b) the loan repayments made by such employees with respect to their
outstanding loans under the Continental 401(k) Savings Plan.

         4.2 HOLDINGS 401(k) SAVINGS PLAN. Effective as of the date the
participation in the Continental 401(k) Savings Plan of the Holdings Employees
terminates as provided in Section 4.1, Holdings shall use reasonable best
efforts to adopt or cause to be adopted the Holdings 401(k) Plan for the benefit
of eligible Holdings Employees.

         4.3 ASSET TRANSFER. As soon as administratively feasible after the
adoption by Holdings pursuant to Section 4.2 of the Holdings 401(k) Savings
Plan, Continental shall use reasonable best efforts to cause the trustee of the
trust funding the Continental 401(k) Savings Plans to transfer to the trustee of
the trust funding the Holdings 401(k) Savings Plan an amount equal to the
aggregate account balances under the Continental 401(k) Savings Plan (determined
as of the transfer date in accordance with the methods of valuation set forth in
the Continental 401(k) Savings Plan) of the individuals who are Holdings
Employees (the "Holdings 401(k) Participants"). The transfer of such accounts
shall be made (a) in kind, to the extent the assets thereof consist of loans
from such plan to a Holdings 401(k) Participant, and (b) otherwise in cash,
securities, other property or a combination thereof, as determined by
Continental in its sole discretion. From and after the time of such transfer,
the Holdings 401(k) Savings Plan shall assume and be solely responsible for all
Liabilities under the Continental 401(k) Savings Plan to or relating to the
Holdings 401(k) Participants. Continental and Holdings shall use reasonable best
efforts to cooperate and take such actions as are necessary to permit the
continuation of loan repayments by Holdings 401(k) Participants to the
Continental 401(k) Savings Plan by payroll deductions during the period
beginning with the adoption by Holdings pursuant to Section 4.2 of the Holdings
401(k) Savings Plan and ending on the date of the transfer described in this
Section. Continental represents, covenants and agrees with respect to the
Continental 401(k) Savings Plan, and Holdings represents, covenants and agrees
with respect to the Holdings 401(k) Savings Plan, that, as of the date of the
transfer described in this Section, such plan will satisfy the requirements of
Sections 401(a), (k) and (m) of the Code.

                                   ARTICLE V
                            HEALTH AND WELFARE PLANS

         5.1 HOLDINGS PARTICIPATION IN CONTINENTAL WELFARE PLANS. Effective
Immediately preceding the IPO Date, Holdings shall cease participation in all
Continental Welfare Plans, and, effective as of the IPO Date, Holdings shall use
reasonable best efforts to cause eligible Holdings Employees to commence
participation in the Holdings Welfare Plans. Claims for benefits by Holdings
Employees arising out of occurrences on or subsequent to the IPO Date shall be
covered by and the sole liability of the Holdings Welfare Plans in accordance
with the terms of such plans. Claims for benefits by Holdings Employees arising
out of occurrences prior to the IPO Date shall be covered by and the sole
liability of the Continental Welfare Plans in accordance with the terms of such
plans; provided however, that Holdings shall be liable for any premiums,
payments and other costs with respect to such claims under the Continental
Welfare Plans. For this purpose, (a) claims for medical, dental, prescription
drug, and vision benefits by Holdings Employees shall be considered to have
occurred on the date of purchase or the date service or treatment was rendered,
as applicable, (b) claims for life insurance and accidental death and
dismemberment insurance benefits shall be considered to have occurred on the
date of

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death or the date the accident occurred, and (c) claims for disability benefits
shall be considered to have occurred on the date the disability occurred.

         5.2 PILOT LTD PLAN AND VEBA. Notwithstanding the provisions of Section
5.1 above to the contrary, effective as of the IPO Date, Holdings and
Continental shall use reasonable best efforts to cause the Holdings Pilot LTD
Plan to assume all liabilities of the Continental Pilot LTD Plan with respect to
Holdings Employees. In connection with the foregoing, the following actions
shall be taken:

                  (a) Effective as of the IPO Date, Holdings shall use
reasonable best efforts to establish, or shall use reasonable best efforts to
cause to be established, the Holdings VEBA for the purpose of funding long-term
disability benefits under the Holdings Pilot LTD Plan. Holdings shall use
reasonable best efforts to ensure such trust meets applicable requirements of
Sections 419, 419A, 501(a) and 501(c)(9) of the Code and, within fifteen months
following the end of the month in which the Holdings VEBA is established, shall
file with the Internal Revenue Service an application for a determination with
respect to the exempt status of the Holdings VEBA.

                  (b) At the times and in the manners set forth in paragraph (c)
below, Continental shall cause to be transferred to the Holdings VEBA (i) a
portion of the assets of the Continental VEBA in an amount sufficient to fund
three months of projected benefit payments of the Continental Pilot LTD Plan
with respect to Holdings Employees as of Immediately preceding the IPO Date (as
determined by the Enrolled Actuary for the Continental VEBA, whose determination
shall be binding and conclusive on the parties hereto) and (ii) a pro-rata
portion of the assets of the Continental VEBA Immediately preceding the IPO Date
in an amount equal to (A) the total assets of the Continental VEBA as of such
date multiplied by (B) the aggregate present value of future benefit obligations
of the Continental Pilot LTD Plan with respect to Holdings Employees as of such
date divided by (C) the aggregate present value of the total future benefit
obligations of the Continental Pilot LTD Plan as of such date, with such amount
to be reduced by the amount determined pursuant to clause (i) above.

                  (c) For purposes of paragraph (b) above, the present value of
the future benefit obligations shall be determined by the Enrolled Actuary for
the Continental VEBA (whose determinations shall be binding and conclusive on
the parties hereto) using methods and assumptions consistent with those used to
produce the Actuarial Report for the Continental Pilot LTD Plan dated December
31, 2001. The transfer of assets pursuant to clause (i) of paragraph (b) above
shall take place on the IPO Date or as soon as administratively practicable
thereafter, and the transfer of assets pursuant to clause (ii) of paragraph (b)
above shall take place as soon as administratively practicable after the
completion of the calculation. The total amount to be transferred shall be
determined as of Immediately preceding the IPO Date, and any amount transferred
shall also include interest with respect to such amount for the period beginning
at such time and ending on the day immediately preceding the date such amount is
transferred based on the interest rate used by the Enrolled Actuary for the
Continental VEBA for determining the present value of the benefit obligations
pursuant to paragraph (b). The assets shall be transferred in cash, securities,
other property or a combination thereof, as determined by Continental in its
sole discretion.

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                  (d) For the period beginning on the IPO Date and ending on the
date of the transfer of assets described in clause (ii) of paragraph (b) above,
in the event that the assets of the Holdings VEBA are not sufficient to satisfy
its payment obligations with respect to Holdings Employees, such payment
obligations shall be satisfied by the Continental VEBA. The amount of any such
payment obligation so satisfied by the Continental VEBA, adjusted for applicable
interest, shall be deducted from the amount required to be transferred to the
Holdings VEBA pursuant to paragraph (b).

                  (e) Following the transfer of assets described in clause (ii)
of paragraph (b) above, Holdings shall assume all Liabilities of Continental
under the Continental LTD Plan with respect to Holdings Employees, and
Continental shall have no further liability to Holdings or any Holdings Employee
with respect thereto.

                  (f) In the event that Holdings fails to file with the Internal
Revenue Service for a determination with respect to the exempt status of the
Holdings VEBA by the last day of the fifteen month period described in paragraph
(a) above, Holdings shall cause to be returned to the Continental VEBA all
assets held by the Holdings VEBA reduced by the sum of (i) the dollar amount of
any assets attributable to Holdings' contributions to the Holdings VEBA on or
after the IPO Date and (ii) the dollar amount of the total of all payments made
to Holdings Employees from the Holdings VEBA on or after the IPO Date, with such
return transfer to be made as soon as administratively practicable after such
date. Upon the return of assets pursuant to the preceding sentence, Continental
shall reassume the Liabilities assumed by Holdings pursuant to paragraph (e)
above.

         5.3 EFFECT OF CHANGE IN RATES. Until such time as Continental shall
determine in its sole discretion, Continental and Holdings shall use their
reasonable best efforts to cause each of the insurance companies, HMOs and
third-party administrators providing services and benefits under the Continental
Plans and the Holdings Plans to maintain the premium and/or administrative rates
based on the aggregate number of participants in both the Continental Plans and
the Holdings Plans. To the extent they are not successful in such efforts,
Continental and Holdings shall each bear the revised premium or administrative
rates attributable to the individuals covered by their respective plans.

         5.4 CONTINENTAL GUARANTEE REIMBURSEMENTS. To assist Holdings in
implementing Holdings Welfare Plans, Continental may have entered into
agreements with insurance companies, HMOs or third-party administrators
providing services and benefits under the Holdings Welfare Plans pursuant to
which Continental has agreed on a temporary basis to assume responsibility for
or otherwise guarantee payments by or obligations of Holdings for premiums, bank
account transfers and other fees. To the extent that Continental is required to
tender payment of any monies to any such insurance company, HMO or third-party
administrator pursuant to any such assumption of responsibility or guarantee
agreement, Holdings will reimburse Continental for the full amount of such
payment within thirty (30) days of receipt from Continental of a written request
for such reimbursement.

                                      -11-
<PAGE>

         5.5 COBRA AND HIPAA.

                  (a) COBRA CONTINUATION COVERAGE. Continental shall be
responsible for providing continuation coverage as required by COBRA under a
Continental Welfare Plan to any employee, officer, director, consultant, or
agent of Continental, any Continental Affiliate, Holdings, and each Holdings
Affiliate, and other qualified beneficiaries under COBRA with respect to such
individuals, who have a COBRA qualifying event (due to termination of employment
with any of the foregoing entities or otherwise) ("COBRA Continuee") prior to
the IPO Date. Holdings shall be responsible for providing continuation coverage
as required by COBRA under a Holdings Welfare Plan to any employee, officer,
director, consultant, or agent of Holdings and each Holdings Affiliate, and
other qualified beneficiaries under COBRA with respect to such individuals, who
have a COBRA qualifying event (due to termination of employment with Holdings or
a Holdings Affiliate or otherwise) on or after the IPO Date.

                  (b) HIPAA CERTIFICATES OF CREDITABLE COVERAGE. For all periods
prior to the IPO Date, Continental shall be responsible for providing
certificates of creditable coverage as required under HIPAA regarding any
Continental Welfare Plan to any employee of Continental, Holdings, or their
Affiliates, or any dependent of such an employee (a "HIPAA Beneficiary").
Further, Continental shall provide certificates of creditable coverage regarding
any Continental Welfare Plan to any COBRA Continuee to whom Continental provides
continuation coverage in accordance with Section 5.5(a) at the time such
continuation coverage ceases, and upon request made by, or on behalf of, any
HIPAA Beneficiary, within twenty four (24) months after his or her coverage
under a Continental Health Plan ceases. As of the IPO Date, Holdings shall be
responsible for providing certificates of creditable coverage as required under
HIPAA under any Holdings Welfare Plan to any employee of Holdings or a Holdings
Affiliate, or any dependent of such employee.

         5.6 CONTINENTAL WORKERS' COMPENSATION PROGRAM. Continental shall be
responsible for the administration of all workers' compensation claims that are,
or have been, incurred before the IPO Date with respect to Holdings Employees.
From and after the IPO Date, Holdings shall bear sole responsibility for the
administration of all workers' compensation claims that are incurred on or after
the IPO Date with respect to Holdings Employees. Through and after the IPO Date
and for so long as both parties mutually desire, and to the extent permissible
by applicable law, both parties shall fully cooperate with the other with
respect to the administration and reporting of any workers' compensation claims
and the defense of any such claims whether on behalf of Continental or Holdings
or both parties, including the sharing of records and such other information as
may be useful for any such defense. From the IPO Date until the last day of the
Capacity Purchase Period, (a) Holdings (on behalf of itself and the Holdings
Affiliates), and, to the extent permissible under applicable law or under the
terms of any applicable insurance contract or any workers' compensation programs
maintained by Holdings or a Holdings Affiliate, hereby waives any right to seek
workers' compensation subrogation recovery from Continental or any Continental
Plans or Continental Affiliates with respect to any workers' compensation claim
made by an employee covered under the workers' compensation programs of
Holdings, and (b) Continental (on behalf of itself and the Continental
Affiliates), and, to the extent permissible under applicable law or under the
terms of any applicable insurance contract or any workers' compensation programs
maintained by Continental or a Continental Affiliate, herby waives any right to
seek workers' compensation subrogation

                                      -12-
<PAGE>

recovery from Holdings or any Holdings Plan or Holdings Affiliates with respect
to any workers' compensation claim made by an employee covered under the
workers' compensation programs of Continental.

         5.7 POST-IPO TRANSITIONAL ARRANGEMENTS.

                  (a) CONTINUANCE OF ELECTIONS, CO-PAYMENTS AND MAXIMUM
BENEFITS.

                        (i) Holdings shall use reasonable best efforts to cause
the Holdings Welfare Plans to recognize and maintain all coverage and
contribution elections made by Holdings Employees under the Continental Welfare
Plans and apply such elections under the Holdings Welfare Plans to the extent
applicable for the remainder of the period or periods for which such elections
are by their terms applicable.

                        (ii) Holdings shall use reasonable best efforts to cause
the Holdings Welfare Plans to recognize and give credit for (A) all amounts
applied to deductibles, out-of-pocket maximums, and other applicable benefit
coverage limits with respect to which such expenses have been incurred by
Holdings Employees under the Continental Welfare Plans for the remainder of the
year in which the IPO Date occurs, and (B) all benefits paid to Holdings
Employees under the Continental Welfare Plans for purposes of determining when
such persons have reached their lifetime maximum benefits under the Holdings
Welfare Plans. In addition, and for purposes of retiree medical benefits,
Holdings shall use reasonable best efforts to cause the appropriate Holdings
Welfare Plan to recognize and credit, on behalf of any retiree who is a Holdings
Employee, such individual's sick bank credits under the corresponding
Continental Welfare Plan as of Immediately preceding the IPO Date.

                        (iii) Holdings shall use reasonable best efforts to
provide continuing uninterrupted group life insurance coverage to participating
Holdings Employees under the Holdings Welfare Plans without the need to undergo
a physical examination or otherwise provide evidence of insurability.
Notwithstanding anything herein to the contrary, Holdings Employees who elect a
change in life insurance coverage may be subject to rules of the insurer,
including physical examination or other evidence of insurability.

                        (iv) To the extent that Holdings is unable, despite
reasonable best efforts, to achieve the foregoing provisions of this Section
5.7(a), Holdings shall be solely responsible for any Liability associated
therewith, and Holdings may take any such steps with respect thereto as Holdings
deems necessary or advisable in its sole discretion.

                  (b) OTHER POST-IPO TRANSITIONAL MATTERS.

                        (i) FLEXIBLE BENEFITS PLAN. Continental and Holdings
shall use reasonable best efforts to take all steps necessary or appropriate so
that the account balances, accruals, and/or service credit, to the extent
applicable, under each Continental Flexible Benefits Plan of each Holdings
Employee who has elected to participate therein in the year in which the IPO
Date occurs shall be transferred, as soon as practicable after the IPO Date,
from such Continental Flexible Benefits Plan to the corresponding Holdings
Flexible Benefits Plan, and so that the contribution elections of each such
Holdings Employee as in effect Immediately preceding the IPO Date remain in
effect under the Holdings Flexible Benefits Plan immediately

                                      -13-
<PAGE>

after such transfer. If the aggregate amount of the transferred account balances
of Holdings Employees is negative, then Holdings shall pay Continental the
amount of such aggregate negative balance promptly following such account
balance transfer.

                        (ii) HEALTH AND WELFARE PLANS SUBROGATION RECOVERY. As
soon as administratively feasible following the collection of any such recovery,
Holdings shall pay to Continental or the Continental Welfare Plan or the
Holdings Welfare Plan, as appropriate, any amounts Holdings recovers from time
to time through subrogation or otherwise for claims incurred by or reimbursed to
any participant of the Continental Welfare Plan or the Holdings Welfare Plan
that paid such claim. As soon as administratively feasible following the
collection of any such recovery, Continental shall pay to Holdings or the
Holdings Welfare Plan or the Continental Welfare Plan, as appropriate, any
amounts Continental recovers from time to time through subrogation or otherwise
for claims incurred by or reimbursed to any participant of the Continental
Welfare Plan or the Holdings Welfare Plan that paid such claim.

                        (iii) EXCHANGE OF HISTORICAL DATA. With respect to
Holdings Employees, after the IPO Date, both Continental and Holdings shall have
access to claims data configured on any applicable database or archives, and to
eligibility, disability, medical and demographic data configured on any
database, or archives, for all historical periods up to the IPO Date, including
eligibility, incurred claims and other data for purposes of administering the
medical and disability benefits of Continental and Holdings and their
Affiliates.

                                   ARTICLE VI
                    INCENTIVE PROGRAMS AND EXECUTIVE BENEFITS

         6.1 CONTINENTAL EXECUTIVE BENEFIT PLANS.

                  (a) LONG TERM INCENTIVE PROGRAM. Holdings Employees shall
cease participation in the Long Term Incentive Program effective as of the IPO
Date. On or before the IPO Date, Continental and Holdings shall use reasonable
best efforts to cause the Holdings Employees who are participants in the Long
Term Incentive Program as of such date to agree that they shall forfeit and
receive no payments under such plan with respect to awards thereunder for which
the "Performance Period" (as such term is defined in the Long Term Incentive
Program) has not ended on or before such date.

                  (b) TURBO PROGRAM. Holdings Employees shall cease
participation in the Turbo Program effective as of 11:59 P.M. City of Houston
time December 31, 2001.

                  (c) RETENTION PROGRAM. Holdings Employees shall cease
participation in the Retention Program effective as of the IPO Date; provided,
however, that a Holdings Employee shall continue to be eligible to participate
in the Retention Program on and after the IPO Date with respect to awards in
which such employee has a vested interest as of such date to the extent of such
vested interest, as well as with respect to vested interests in "Follow-up
Investments" (as such term is defined in the Retention Program) that relate to
such awards. Continental shall retain liability for payments to Holdings
Employees with respect to the vested interests in such

                                      -14-
<PAGE>

awards and the vested interests in any "Follow-up Investments" that relate to
any such awards under the Retention Program.

                  (d) MANAGEMENT BONUS PROGRAM. Holdings Employees shall cease
participation in the Continental Management Bonus Program effective as of
December 31, 2001. Holdings established the Holdings Management Bonus Program
effective as of January 1, 2002, for the benefit of certain executives and other
employees of Holdings subject to such terms and conditions specified by
Holdings. The Holdings Management Bonus Program provides for the payment of
bonuses solely in the event that the target operating income for Holdings for
the year ended December 31, 2002, is at least 90% of the budget approved for
Holdings for such year by the "Committee" (as such term is defined in such
Holdings Plan) and, if such minimum condition is satisfied, the bonus payable
will be based on a sliding scale of between 90% and 110% of the targeted
percentages of annual base salary described below. With respect to the year
ended December 31, 2002, the following are the targeted percentages of annual
base salary under the Holdings Management Bonus Program for the following
officers of ExpressJet Airlines: (a) Chief Executive Officer, 60%; (b) Chief
Operating Officer and Chief Financial Officer, 45% each; (c) Vice Presidents,
40% each; (d) senior director level employees, 25 % each; and (e) director level
employees, 20% each.

                  (e) NOTICE OF CESSATION OF ELIGIBILITY/PARTICIPATION.
Continental shall use reasonable best efforts to cause its Chief Executive
Officer or the Committee, as applicable under the terms of the particular
Continental Executive Benefit Plan, to make a determination that Holdings
Employees shall not be eligible to receive awards under or otherwise participate
in each such Continental Executive Benefit Plan after the applicable dates
identified above with respect to cessation of eligibility and/or participation
of Holdings Employees in each such Continental Executive Benefit Plan, and
Continental shall provide affected Holdings Employees with a written notice of
such determination as soon as practicable after such dates to the extent such
notice is required under the Continental Executive Benefit Plans.

         (f) SUPPLEMENTAL BONUSES. In connection with and as consideration for
their cessation of participation in Continental's benefit programs in general
and as contemplated herein, Continental shall reimburse Holdings for amounts
paid as supplemental bonuses to its officers under their respective employment
agreements entered into in connection with the IPO.

         6.2 OTHER CONTINENTAL INCENTIVE PLANS

                  (a) 1997 EMPLOYEE STOCK PURCHASE PLAN. Holdings and each
Holdings Affiliate, as applicable, shall continue as a Participating Company
consistent with past practice in Continental's 1997 Employee Stock Purchase Plan
until the first day of the calendar quarter in which Continental ceases to own
at least 50% of the common stock of ExpressJet Holdings (subject to applicable
legal requirements). Effective as of such date, such participation shall cease,
all participating employees of Holdings and the Holdings Affiliates shall
automatically be deemed to have withdrawn from such plan as of such date without
further action by such employees, and any contributions made by such employees
to such plan during such calendar quarter shall be returned to such employees in
accordance with the terms of such plan.

                                      -15-
<PAGE>

                  (b) CONTINENTAL PROFIT SHARING PLAN. The participation in the
Continental Profit Sharing Plan by Holdings and each Holdings Affiliate that is
a Participating Company in the Continental Profit Sharing Plan shall cease
effective as of January 1, 2002. Holdings shall use reasonable best efforts to
adopt or cause to be adopted the Holdings Profit Sharing Plan effective as of
January 1, 2002, for the benefit of eligible Holdings Employees. The terms and
conditions of the Holdings Profit Sharing Plan shall be determined by Holdings.

                  (c) CONTINENTAL ON-TIME BONUS PROGRAM. Effective Immediately
preceding the IPO Date, the participation of Holdings and each Holdings
Affiliate that is a Participating Company in the Continental On-Time Bonus
Program shall cease. Effective as of the IPO Date, Holdings shall use reasonable
best efforts to adopt or cause to be adopted the Holdings On-Time Bonus Program
for the benefit of eligible Holdings Employees subject to terms and conditions
to be determined by Holdings. The Holdings On-Time Bonus Program shall provide
(i) credit for performance prior to the IPO Date to the extent necessary to
achieve equity and (ii) a payment schedule similar to that set forth in the
Continental On-Time Bonus Program.

                  (d) CONTINENTAL PERFECT ATTENDANCE PROGRAM. Holdings and each
Holdings Affiliate, as applicable, shall continue as a Participating Company
consistent with past practice in the Continental Perfect Attendance Program
through June 30, 2002. The participation in the Continental Perfect Attendance
Program by Holdings and each Holdings Affiliate that is a Participating Company
in the Continental Perfect Attendance Program shall cease effective as of
11:59 P.M. City of Houston time June 30, 2002. Holdings shall be liable for
the full amount of any and all payments and/or awards under the Continental
Perfect Attendance Program that are owed to Holdings Employees in connection
with the plan participation described in the first sentence of this Section
6.2(d). Effective as of July 1, 2002, Holdings shall use reasonable best
efforts to adopt or cause to be adopted the Holdings Perfect Attendance Program
for the benefit of eligible Holdings Employees subject to terms and conditions
to be determined by Holdings.

         6.3 CONTINENTAL DEFERRED COMPENSATION PLAN. Effective Immediately
preceding the IPO Date, the participation of each eligible Holdings Employee in
the Continental Deferred Compensation Plan shall cease. As soon as
administratively feasible thereafter, each participating Holdings Employee shall
receive a payment in an amount equal to the sum of (a) the value of his or her
deferral accounts under such plan and (b) an additional amount that, in the sole
discretion of Holdings, is sufficient to compensate such Holdings Employee for
any additional federal income tax due solely because such distribution caused
such Holdings Employee to be taxed at a higher marginal federal income tax rate
than would otherwise have applied to such Holdings Employee upon his termination
of employment with Holdings and the Holdings Affiliates. Such payment shall be
made in a single lump sum payment and shall be paid by Holdings to the extent,
if any, that the subtrust established in connection with Holdings' participation
in such plan does not have sufficient funds to make such payment in full.
Notwithstanding the foregoing, in the event any Holdings Employee participating
in the Continental Deferred Compensation Plan would be treated as having a
"Retirement Date" (as

                                      -16-
<PAGE>

defined in such plan) in the event such individual terminated from service
Immediately preceding the IPO Date, Continental shall cause the Continental
Deferred Compensation Plan to treat such individual as having incurred a
"Termination of Service" (as defined in such plan) at such time (provided such
individual remains continuously employed by Holdings or a Holdings Affiliate
through the IPO Date). In such case, Holdings shall pay to such Holdings
Employee the benefits owed to him or her under the Continental Deferred
Compensation Plan to the extent, if any, that the subtrust established in
connection with Holdings' participation in such plan does not have sufficient
funds to pay such benefits.

         6.4 CONTINENTAL OPTIONS. Each Continental Option outstanding as of the
IPO Date that is held by a Holdings Employee shall be governed by the terms of
the plan and the option agreement under which such option was granted.

         6.5 HOLDINGS OPTIONS. ExpressJet Holdings has established and adopted
the Holdings 2002 Stock Incentive Plan for the award of stock options and
restricted stock to selected employees and non-employee directors of Holdings.
The Holdings 2002 Stock Incentive Plan was adopted by the ExpressJet Holdings
Board of Directors, and became effective on March 27, 2002. Continental, the
sole stockholder of ExpressJet Holdings, approved the Holdings 2002 Stock
Incentive Plan on March 28, 2002. The Holdings 2002 Stock Incentive Plan has
terms and conditions substantially similar to the Continental Airlines, Inc.
1998 Stock Incentive Plan, except that such Holdings Plan provides for all
stock-based awards to be based upon the Holdings Common Stock and appropriate
revisions were made to reflect that ExpressJet Holdings is the sponsor of such
plan. The Holdings 2002 Stock Incentive Plan provides that the maximum number of
shares of Holdings Common Stock that may be issued under such plan is equal to
3,200,000 shares, subject to adjustment as provided in such plan.

                                   ARTICLE VII
                                 OTHER BENEFITS

         7.1 FLIGHT PASS PRIVILEGES. As of the IPO Date, Holdings shall use
reasonable best efforts to establish the Holdings Flight Pass Privileges with
terms and conditions substantially similar in all material respects to the
Continental Flight Pass Privileges as in effect Immediately preceding the IPO
Date. During the period beginning on the IPO Date and ending on and including
the Exclusivity Ending Date, (a) employees and retirees of Holdings and Holdings
Affiliates will have Continental Flight Pass Privileges on the same terms and
conditions as similarly-situated employees and retirees of Continental, and (b)
employees and retirees of Continental and Continental Affiliates will have
Holdings Flight Pass Privileges on the same terms and conditions as
similarly-situated employees and retirees of Holdings. Continental and Holdings
will meet and confer to determine what, if any, Flight Pass Privileges each of
their employees and retirees will have on the other after the Exclusivity Ending
Date.

         7.2 UATP BENEFITS. From and after the IPO Date, Holdings Employees who
are officers of Holdings or a Holdings Affiliate and who hold a UATP card issued
by Continental pursuant to their employment agreements in effect as of the date
hereof shall continue to have the right (including any post-employment right set
forth in such employment agreements as of the date hereof) to use the UATP
benefits associated with such cards (and the pass classifications and benefits
set forth in such employment agreements) on Continental and Continental
Affiliates, without cost (other than applicable taxes) to such officers or to
Holdings or the applicable

                                      -17-
<PAGE>

Holdings Affiliate. From and after the IPO Date, Continental shall use
reasonable best efforts to grant to Holdings, upon its request, up to five
additional UATP cards, three of which shall have an annual travel limit of
$18,750 and two of which shall have an annual travel limit of $25,000, for use
by officers hired by Holdings or a Holdings Affiliate on or after the IPO Date,
on flights operated by Continental or a Continental Affiliate without cost
(other than applicable taxes) to such officers or Holdings or the applicable
Holdings Affiliate; provided, however, that such officers' rights to use such
UATP cards shall terminate on the date their employment with Holdings and all
Holdings Affiliates terminates for any reason whatsoever; and provided further
that such UATP cards shall only be valid during the Capacity Purchase Period.
From and after the IPO Date, Holdings shall use reasonable best efforts to cause
all UATP cards issued by Continental to officers or members of the Board of
Directors of Continental (or their respective spouses) pursuant to employment or
other agreements with such officers or members of the Board of Directors
(whether entered into or issued before or after the IPO Date) to be able to be
used (together with the pass classifications and benefits set forth in such
employment or other agreements) on any and all flights operated by Holdings or a
Holdings Affiliate, without cost (other than applicable taxes) to Continental or
such persons.

         7.3 NON-EMPLOYEE DIRECTOR PASSES. During the period beginning on the
IPO Date and ending on and including the Exclusivity Ending Date, Continental
shall use reasonable best efforts to provide Holdings with 12 positive space,
round-trip, first class/business class passes on Continental and Continental
Affiliates per year for each non-employee director of ExpressJet Holdings (up to
a maximum of five such non-employee directors) for use by such individuals while
they serve on the Board of Directors of ExpressJet Holdings.

         7.4 EMPLOYEE SENIOR DIRECTOR PASSES. During the period beginning on the
IPO Date and ending on and including the Exclusivity Ending Date, Continental
shall use reasonable best efforts to provide Holdings on behalf of each Employee
Senior Director, 4 positive space, round-trip, first class/business class passes
on Continental and Continental Affiliates per year for each such Employee Senior
Director for use by such individuals while they are employed in the position of
Employee Senior Director. To the extent that such Employee Senior Director's
immediate family (including self, spouse, and qualifying dependents) exceeds
four persons, an additional such pass for each such family member in excess of 4
shall be provided on behalf of such director. Notwithstanding anything in the
foregoing to the contrary, for purposes of determining the number of qualifying
members in an Employee Senior Director's immediate family, the then prevailing
policies and practices of Continental shall control at all times. Further, for
purposes of this Section 7.4, Employee Senior Director shall mean only those
individual persons currently serving as a Senior Director at the time of the
IPO. In the event any such individual terminates employment or no longer serves
in the capacity of an Employee Senior Director, Continental's obligations under
this Section 7.4 shall cease with respect to such individual. Further,
Continental shall not provide any passes under this Section 7.4 on behalf any
individual who does not, at the time of the IPO, qualify as an Employee Senior
Director.

                                  ARTICLE VIII
                           GENERAL AND ADMINISTRATIVE

         8.1 ADMINISTRATIVE PERSONNEL. A schedule of the individuals employed in
certain Continental corporate business functions who have been designated to
become employees of Holdings or a Holdings Affiliate (the "Holdings
Administrative Employees") has been agreed to

                                      -18-
<PAGE>

by Continental and Holdings in a separate agreement between Continental and
Holdings. The Holdings Administrative Employees shall become employees of
Holdings on or before the IPO Date.

         8.2 PAYMENT OF PLAN EXPENSES.

                  (a) GENERAL PROVISIONS. With respect to any period during
which Holdings or a Holdings Affiliate is a Participating Company in a
Continental Plan or to the extent that any Holdings Plan is maintained,
operated, or administered in conjunction with any Continental Plan under the
same ASO Contract, Group Insurance Policy, or other agreement or arrangement,
Holdings shall pay its allocable share of (i) any contributions made to any
trust maintained in connection with such plan, (ii) any premiums or other
payments to fund benefits paid under such plan, and (iii) any maintenance or
administrative expenses arising from or with respect to such plan. In addition,
Continental and Holdings shall each be responsible for their respective
allocable share of costs and expenses incurred in the maintenance, operation,
and administration of Continental Plans and Holdings Plans, including, (1) all
cost of benefits, (2) all internal administrative costs of benefits and the
employee benefits services personnel, (3) all external administrative costs for
management of assets, recordkeeping, communications, benefit delivery, insurance
fees and commissions, consultant, actuarial, accounting, legal, printing,
photocopying, mailing and other expenses, and (4) all COBRA administrative
expenses.

                  (b) DETERMINATION OF ALLOCABLE SHARE. Holdings' allocable
share of the costs set forth in Section 8.2(a) shall be equal to the total of
any such costs that are attributable to Holdings and the Holdings Affiliates as
determined by Continental under and consistent with the intercompany billing
process in place immediately before the IPO Date. With respect to any costs or
additional unanticipated expenses that were not billed through the intercompany
billing process, Holdings shall pay to Continental its allocable share of such
costs as determined by Continental based on a head count of the individuals or
participants participating in such benefit, or, in the event such costs cannot
be allocated on such basis, Holdings' share shall be determined by Continental
in such other manner as Continental deems appropriate. Continental's
determinations under the foregoing provisions of this Section 8.2 shall be made
from time to time in its discretion, and such determinations shall be binding
and conclusive on Holdings.

                  (c) PAYMENT OF ALLOCABLE SHARE. Effective from and after the
IPO Date, to the extent that Holdings' share of the costs set forth in Section
8.2(a) is not paid directly by Holdings, but instead is initially paid by
Continental, Holdings shall reimburse Continental for such costs as soon as
administratively feasible (but no later than 60 days) following the receipt of
an invoice from Continental providing the amount and description of such
costs.

                  (d) ADMINISTRATIVE SERVICES AGREEMENT. Additional detail on
certain services to be provided by Continental to Holdings and Holdings'
obligation to pay for such services is set forth in the Administrative Services
Agreement. In the event of any conflict between the provisions of this Section
8.2 and the express provisions of the Administrative Services Agreement, the
Administrative Services Agreement shall control.

                                      -19-
<PAGE>

         8.3 VENDOR CONTRACTS.

                  (a) THIRD-PARTY ASO CONTRACTS.

                        (i) Unless otherwise requested by Holdings, Continental
and Holdings shall use commercially reasonable efforts to cause each ASO
Contract that is entered into or renewed on or after the IPO Date and prior to
any date determined by Continental in its sole discretion to provide that
Holdings shall be eligible for a mirror contract with substantially the same
terms and conditions as are contained in the ASO Contract to which Continental
is a party. Such terms and conditions shall include the financial and
termination provisions, performance standards, methodology, auditing policies,
quality measures and reporting requirements.

                        (ii) To the extent that Continental and Holdings are not
successful in negotiating contract language that will permit compliance with the
foregoing paragraph and to the extent an ASO contract is not addressed in such
paragraph, Holdings shall be responsible for negotiating its own ASO Contracts
effective on or before the IPO Date.

                  (b) GROUP INSURANCE POLICIES.

                        (i) Unless otherwise requested by Holdings, Continental
and Holdings shall use commercially reasonable efforts to cause each Group
Insurance Policy that is entered into or renewed on or after the IPO Date and
prior to any date determined by Continental in its sole discretion to provide
that Holdings shall be eligible for a mirror policy with substantially the same
terms and conditions as are contained in the Group Insurance Policy which
Continental has obtained. Such terms and conditions shall include the financial
and termination provisions, performance standards and target claims.

                        (ii) To the extent Continental and Holdings are not
successful in negotiating policy provisions that will permit compliance with
foregoing paragraph and to the extent that a Group Insurance Policy is not
addressed in such paragraph, Holdings shall be responsible for procuring its own
Group Insurance Policies effective on or before the IPO Date.

                  (c) HMO AGREEMENTS.

                        (i) Unless otherwise requested by Holdings, Continental
and Holdings shall use commercially reasonable efforts to cause all agreements
with HMOs ("HMO Agreements") that provide medical services under a Continental
Welfare Plan entered and that are entered into or renewed on or after the IPO
Date and prior to any date determined by Continental in its sole discretion to
provide that Holdings shall be eligible for a mirror HMO Agreement effective as
of the IPO Date with substantially the same terms and conditions as are
contained in the HMO Agreement to which Continental is a party; provided that
such arrangements shall be mutually beneficial to both Continental and Holdings.
Such terms and conditions shall include the financial and termination provisions
of the HMO Agreements.

                        (ii) If Continental and Holdings determine that they
will not be successful in negotiating arrangements that will permit compliance
with the foregoing paragraph and to the extent that such an HMO Agreement is not
addressed in such paragraph, Holdings will be responsible for procuring its own
HMO Agreements effective on or before the IPO Date.

                                      -20-
<PAGE>

         8.4 SHARING OF PARTICIPANT INFORMATION. Continental and Holdings shall
use reasonable best efforts to share, Continental shall use reasonable best
efforts to cause each applicable Continental Affiliate to share, and Holdings
shall use reasonable best efforts to cause each applicable Holdings Affiliate to
share, with each other and their respective agents and vendors, without
obtaining releases, all participant information necessary for the efficient and
accurate administration of each of the Continental Plans and the Holdings Plans
in accordance with the terms of this Employee Benefits Separation Agreement.
Continental and Holdings and their respective authorized agents shall, subject
to applicable laws on confidentiality, be given reasonable and timely access to,
and may make copies of, all information relating to the subjects of this
Employee Benefits Separation Agreement in the custody of the other party, to the
extent necessary for such administration.

         8.5 REPORTING AND DISCLOSURE AND COMMUNICATIONS TO PARTICIPANTS. While
Holdings is a Participating Company in a Continental Plan, Holdings shall use
reasonable best efforts to take, and shall use reasonable best efforts to cause
each other applicable Holdings Affiliate to take, all actions necessary or
appropriate to facilitate the distribution of all Continental Plan-related
communications and materials to employees, participants and beneficiaries,
including summary plan descriptions, summaries of material modification, summary
annual reports, investment information, prospectuses, notices and enrollment
material for the Continental Plan. For periods beginning on or after the IPO
date, Holdings shall pay Continental the cost relating to the copies of all such
documents provided to Holdings. On or after the IPO Date and prior to any date
determined by Continental in its sole discretion, Continental and Holdings shall
assist each other in complying with all reporting and disclosure requirements of
ERISA, including the preparation of Form 5500 annual reports for the Continental
Plans and the Holdings Plans, where applicable.

         8.6 SUCCESSORS; PARTIES IN INTEREST. This Employee Benefits Separation
Agreement shall be binding upon and inure solely to the benefit of each party
hereto and their successors, and nothing in this Employee Benefits Separation
Agreement, express or implied, is intended to or shall confer upon any other
Person any right, benefit or remedy of any nature whatsoever under or by reason
of this Employee Benefits Separation Agreement.

         8.7 BENEFICIARY DESIGNATIONS. Holdings shall use reasonable best
efforts to cause all beneficiary designations made by Holdings Employees for
Continental Plans to be deemed as valid beneficiary designations under the
corresponding Holdings Plans until such beneficiary designations are replaced or
revoked by the Holdings Employee who made the beneficiary designation.

         8.8 CONSENT OF THIRD PARTIES. If any provision of this Employee
Benefits Separation Agreement is dependent on the consent of any third party
(for example, a vendor) and such consent is withheld, Continental and Holdings
shall use reasonable best efforts to implement the applicable provisions of this
Employee Benefits Separation Agreement to the full extent practicable. If any
provision of this Employee Benefits Separation Agreement cannot be implemented
due to the failure of such third party to consent, Continental and Holdings
shall negotiate in good faith to implement the provision in a mutually
satisfactory manner.

                                      -21-
<PAGE>

                                   ARTICLE IX
                                  MISCELLANEOUS

         9.1 EFFECT IF IPO DOES NOT OCCUR. If the IPO does not occur, then all
actions and events that are, under this Employee Benefits Separation Agreement,
to be taken or occur effective as of Immediately preceding the IPO Date, as of
the IPO Date, or otherwise in connection with the IPO, shall not be taken or
occur except to the extent specifically agreed by Holdings and Continental.

         9.2 COMPLETE AGREEMENT. Except as otherwise set forth in this Employee
Benefits Separation Agreement, this Employee Benefits Separation Agreement shall
constitute the entire agreement between the parties hereto with respect to the
subject matter hereof and shall supersede all prior agreements and
understandings, whether written or oral, between the parties with respect to
such subject matter.

         9.3 RELATIONSHIP OF PARTIES. Nothing in this Employee Benefits
Separation Agreement shall be deemed or construed by the parties or any third
party as creating the relationship of principal and agent, partnership or joint
venture between the parties, it being understood and agreed that no provision
contained herein, and no act of the parties, shall be deemed to create any
relationship between the parties other than the relationship set forth herein.

         9.4 AFFILIATES. Each of Continental and Holdings shall cause to be
performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth in this Employee Benefits Separation Agreement to be
performed by a Continental Affiliate or a Holdings Affiliate, respectively.

         9.5 CONSENT TO EXCLUSIVE JURISDICTION. Any action, suit or proceeding
arising out of any claim that the parties cannot settle through good faith
negotiations shall be litigated exclusively in the state courts of Harris County
of the State of Texas. Each of the parties hereto hereby irrevocably and
unconditionally (a) submits to the jurisdiction of the state courts of Texas for
any such action, suit or proceeding, (b) agrees not to commence any such action,
suit or proceeding except in the state courts of Texas, (c) waives, and agrees
not to plead or to make, any objection to the venue of any such action, suit or
proceeding in the state courts of Texas, (d) waives, and agrees not to plead or
to make, any claim that any such action, suit or proceeding brought in the state
courts of Texas has been brought in an improper or otherwise inconvenient forum,
(e) waives, and agrees not to plead or to make, any claim that the state courts
of Texas lack personal jurisdiction over it, and (f) waives its right to remove
any such action, suit or proceeding to the federal courts except when such
courts are vested with sole and exclusive jurisdiction by statute. Continental
and Holdings shall cooperate with each other in connection with any such action,
suit or proceeding to obtain reliable assurances that confidential treatment
will be accorded any information that any party shall reasonably deem to be
confidential or proprietary. Each of the parties hereto further covenants and
agrees that, until the expiration of all applicable statutes of limitations
relating to potential claims under this Employee Benefits Separation Agreement,
each such party shall maintain a duly appointed agent for the service of
summonses and other legal process in the State of Texas.

         9.6 NOTICES. All notices made pursuant to this Employee Benefits
Separation Agreement shall be in writing and shall be deemed given upon (a) a
transmitter's confirmation of

                                      -22-
<PAGE>

a receipt of a facsimile transmission (but only if followed by confirmed
delivery of a standard overnight courier the following Business Day or if
delivered by hand the following Business Day), or (b) confirmed delivery of a
standard overnight courier or delivered by hand, to the parties at the following
addresses:

if to Continental:

         Continental Airlines, Inc.
         1600 Smith Street, HQSCD
         Houston, Texas 77002
         Attention: Senior Vice President - Corporate Development
         Telecopy No.: (713) 324-3229

with a copy to:

         Continental Airlines, Inc.
         1600 Smith Street, HQSLG
         Houston, Texas 77002
         Attention: General Counsel
         Telecopy No.: (713) 324-5161

if to ExpressJet Holdings, XJT Holdings or ExpressJet Airlines to:

         ExpressJet Holdings, Inc.
         1600 Smith Street, HQSCE
         Houston, Texas 77002
         Attention: Chief Financial Officer
         Telecopy No.: (713) 324-4420

or to such other address as either party hereto may have furnished to the other
party by a notice in writing in accordance with this Section 9.6.

         9.7 AMENDMENT AND TERMINATION. This Employee Benefits Separation
Agreement may not be amended or modified in any respect except by a written
agreement signed by all of the parties hereto.

         9.8 COUNTERPARTS. This Employee Benefits Separation Agreement may be
executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. This
Employee Benefits Separation Agreement may be executed by facsimile signature.

         9.9 WAIVER. The observance of any term of this Employee Benefits
Separation Agreement may be waived (either generally or in a particular instance
and either retroactively or prospectively) by the party entitled to enforce such
term, but such waiver shall be effective only if it is in writing signed by the
party against which such waiver is to be asserted. Unless otherwise expressly
provided in this Employee Benefits Separation Agreement, no delay or

                                      -23-
<PAGE>

omission on the part of any party in exercising any right or privilege under
this Employee Benefits Separation Agreement shall operate as a waiver thereof,
nor shall any waiver on the part of any party of any right or privilege under
this Employee Benefits Separation Agreement operate as a waiver of any other
right or privilege under this Employee Benefits Separation Agreement nor shall
any single or partial exercise of any right or privilege preclude any other or
further exercise thereof or the exercise of any other right or privilege under
this Employee Benefits Separation Agreement. No failure by a party to take any
action or assert any right or privilege hereunder shall be deemed to be a waiver
of such right or privilege in the event of the continuation or repetition of the
circumstances giving rise to such right unless expressly waived in writing by
the party against whom the existence of such waiver is asserted.

         9.10 SEVERABILITY. Any provision of this Employee Benefits Separation
Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof. Any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

         9.11 REMEDIES. Except as otherwise provided herein, each of the parties
hereto shall be entitled to enforce its rights under this Employee Benefits
Separation Agreement specifically, to recover damages and costs (including
reasonable attorneys' fees) caused by any breach of any provision of this
Employee Benefits Separation Agreement and to exercise all other rights existing
in its favor. Each party hereto acknowledges and agrees that under certain
circumstances the breach by Continental or any Continental Affiliates or
Holdings or any Holdings Affiliates of a term or provision of this Employee
Benefits Separation Agreement will materially and irreparably harm another
party, that money damages will accordingly not be an adequate remedy for such
breach and that the non-defaulting party or parties, in its or their sole
discretion and in addition to its or their rights under this Employee Benefits
Separation Agreement and any other remedies it or they may have at law or in
equity, may apply to any court of law or equity of competent jurisdiction
(without posting any bond or deposit) for specific performance and/or other
injunctive relief in order to enforce or prevent any breach of the provisions of
this Employee Benefits Separation Agreement.

         9.12 REFERENCES; CONSTRUCTION. The section and other headings and
subheadings contained in this Employee Benefits Separation Agreement are solely
for the purpose of reference, are not part of the agreement of the parties
hereto, and shall not in any way affect the meaning or interpretation of this
Employee Benefits Separation Agreement. All references to days or months shall
be deemed references to calendar days or months. All references to "$" shall be
deemed references to United States dollars. Unless the context otherwise
requires, any reference to a "Section" shall be deemed to refer to a section of
this Employee Benefits Separation Agreement. The words "hereof," "herein" and
"hereunder" and words of similar import referring to this Employee Benefits
Separation Agreement refer to this Employee Benefits Separation Agreement as a
whole and not to any particular provision of this Employee Benefits Separation
Agreement. Whenever the words "include," "includes" or "including" are used in
this Employee Benefits Separation Agreement, unless otherwise specifically
provided, they shall be deemed to be followed by the words "without limitation."
This Employee Benefits Separation Agreement shall be construed without regard to
any presumption or rule requiring construction or interpretation against the
party drafting or causing the document to be drafted.

                                      -24-
<PAGE>

         9.13 GOVERNING LAW. To the extent not preempted by applicable Federal
law, this Employee Benefits Separation Agreement shall be governed by and
construed in accordance with the laws of the State of Texas (other than the laws
regarding choice of laws and conflicts of laws that would apply the substantive
laws of any other jurisdiction) as to all matters, including matters of
validity, construction, effect, performance and remedies.

         IN WITNESS WHEREOF, the parties have caused this Employee Benefits
Separation Agreement to be duly executed as of the date first above written.

                                     CONTINENTAL AIRLINES, INC.

                                     By:
                                         ---------------------------------------
                                     Name:
                                           -------------------------------------
                                     Title:
                                           -------------------------------------

                                     EXPRESSJET HOLDINGS, INC.

                                     By:
                                         ---------------------------------------
                                     Name:
                                           -------------------------------------
                                     Title:
                                           -------------------------------------

                                     XJT HOLDINGS, INC.

                                     By:
                                         ---------------------------------------
                                     Name:
                                           -------------------------------------
                                     Title:
                                           -------------------------------------

                                     EXPRESSJET AIRLINES, INC.

                                     By:
                                         ---------------------------------------
                                     Name:
                                           -------------------------------------
                                     Title:
                                           -------------------------------------

                                      -25-<PAGE>
                                                                    EXHIBIT 10.7

                                  TAX AGREEMENT

                                 BY AND BETWEEN

                           CONTINENTAL AIRLINES, INC.,

                            EXPRESSJET HOLDINGS, INC.

                                       AND

                            EXPRESSJET AIRLINES, INC.

<PAGE>

                                  TAX AGREEMENT

         TAX AGREEMENT (this "Agreement"), dated as of April 17, 2002, by and
between Continental Airlines, Inc., a Delaware corporation ("Continental"),
ExpressJet Holdings, Inc., a Delaware corporation ("Holdings"), and ExpressJet
Airlines, Inc. ("ExpressJet Airlines"), a Delaware corporation (formerly known
as New ExpressJet Airlines, Inc.).

                                    RECITALS

         WHEREAS, Continental is the common parent corporation of an affiliated
group of corporations within the meaning of Section 1504(a) of the Code and of
consolidated, combined, unitary and other similar groups as defined under
similar laws of other jurisdictions, and Holdings and certain Holdings
Affiliates are members of such groups;

         WHEREAS, the groups of which Continental is the common parent and
Holdings and the Holdings Affiliates are members file Consolidated Returns and
Combined Returns;

         WHEREAS, Continental and XJT Holdings (formerly known as Continental
Express, Inc.) entered into a Tax Agreement effective January 1, 2001 (the
"Original Tax Agreement") setting forth the principles and responsibilities
regarding the allocation of Taxes (as defined herein) and other related
liabilities and adjustments with respect to Taxes during the periods during
which members of the Holdings Group are members of groups of which Continental
is the common parent;

         WHEREAS, Continental and Holdings have entered into an Initial Public
Offering Agreement, and as a result of the transactions contemplated by that
agreement Holdings will cease to be a member of the Continental Group; and

         WHEREAS, Continental and Holdings now wish to terminate the Original
Tax Agreement effective as of the Deconsolidation Date for federal income tax
purposes and to enter into this Agreement to set forth the principles and
responsibilities regarding Taxes.

         NOW, THEREFORE, in consideration of the premises and the
representations, covenants and agreements contained herein and intending to be
legally bound, the parties hereto hereby agree as follows:

                                    ARTICLE I
                                   Definitions

SECTION 1.1 DEFINITIONS. Capitalized terms not otherwise defined herein shall
have the meanings ascribed to such terms in the Initial Public Offering
Agreement. As used in this Agreement, capitalized terms shall have the following
meanings (such meanings to be equally applicable to both the singular and plural
forms of the terms defined).

         "Affiliate" means a Holdings Affiliate or a Continental Affiliate, as
the case may be.

         "Agreed Rate" means, LIBOR plus 200 basis points.

                                      -1-
<PAGE>

         "Agreement" has the meaning set forth in the Recitals.

         "Allocated Attributes" means with respect to each jurisdiction in which
a Consolidated Return or Combined Return is filed, the Tax Attributes that are
available to the Holdings Group at the end of the period that includes the
Deconsolidation Date.

         "Change Event" has the meaning set forth in Section 4.9.

         "Change Notice" has the meaning set forth in Section 4.10.

         "Code" means the United States Internal Revenue Code of 1986, as
amended.

         "Combined Group" means a group of corporations or other entities that
files a Combined Return.

         "Combined Return" means any Tax Return (other than for Federal Income
Taxes) filed on a consolidated, combined (including nexus combination, worldwide
combination, domestic combination, line of business combination or any other
form of combination) or unitary basis wherein Holdings or one or more Holdings
Affiliates join in the filing of such Tax Return (for any taxable period or
portion thereof) with Continental or one or more Continental Affiliates.

         "Consolidated Group" means an affiliated group of corporations within
the meaning of Section 1504(a) of the Code that files a Consolidated Return.

         "Continental Affiliate" means a Person that is Controlled by
Continental, other than Holdings and its subsidiaries.

         "Consolidated Return" means any Tax Return with respect to Federal
Income Taxes filed on a consolidated basis wherein Holdings or one or more
Holdings Affiliates join in the filing of such Tax Return (for any taxable
period or portion thereof) with Continental or one or more Continental
Affiliates.

         "Continental" has the meaning set forth in the Recitals.

         "Continental Group" means the affiliated group of corporations as
defined in Section 1504(a) of the Code, or similar group of entities as defined
under corresponding provisions of the laws of other jurisdictions, of which
Continental is the common parent, and any corporation or other entity which is a
member of such group for the relevant taxable period or portion thereof, but
excluding any member of the Holdings Group.

         "Control" means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.

         "Deconsolidation" means with respect to each Tax Return (i) any event
pursuant to which Holdings and all Holdings Affiliates cease to be subsidiary
corporations includable in the

                                      -2-
<PAGE>

Consolidated Return, and (ii) any event pursuant to which neither Holdings nor
any Holdings Affiliate continues to be included in a Combined Return.

         "Deconsolidation Date" means with respect to each jurisdiction in which
a Consolidated or Combined Tax Return is filed, the day on which Continental
reasonably determines a Deconsolidation occurs.

         "Expected Restructuring Deductions" has the meaning set forth in
Section 4.8(c).

         "Estimated Tax Installment Date" means the installments due dates
prescribed in Section 6655(c) of the Code or any similar provision of the laws
of any other jurisdiction in which a member of the Continental Group or Holdings
Group is subject to Income Tax.

         "Federal Income Tax" means any Tax imposed under Subtitle A of the Code
or any other provision of United States federal Income Tax law (including the
Taxes imposed by Sections 11, 55, 59A, and 1201(a) of the Code), and any
interest, additions to Tax or penalties applicable or related thereto.

         "Final Determination" means the final resolution of any Tax (or other
matter) for a taxable period, including related interest or penalties, that,
under applicable law, is not subject to further appeal, review or modification
through proceedings or otherwise, including (1) by the expiration of a statute
of limitations or a period for the filing of claims for Refunds, amending Tax
Returns, appealing from adverse determinations, or recovering any Refund
(including by offset), (2) by a decision, judgment, decree, or other order by a
court of competent jurisdiction, which has become final and unappealable, (3) by
a closing agreement or an accepted offer in compromise under Section 7121 or
7122 of the Code, or comparable agreements under laws of other jurisdictions,
(4) by execution of an Internal Revenue Service Form 870AD, or by a comparable
form under the laws of other jurisdictions (excluding, however, with respect to
a particular Tax Item for a particular taxable period any such form that
reserves (whether by its terms or by operation of law) the right of the taxpayer
to file a claim for Refund and/or the right of the Tax Authority to assert a
further deficiency with respect to such Tax Item for such period), or (5) by any
allowance of a Refund or credit, but only after the expiration of all periods
during which such Refund may be adjusted.

         "Holdings" has the meaning set forth in the Recitals.

         "Holdings Affiliate" means a Person that directly or indirectly through
one or more intermediaries is Controlled by Holdings.

         "Holdings Group" means the affiliated group of corporations as defined
in Section 1504(a) of the Code, or similar group of entities as defined under
corresponding provisions of the laws of other jurisdictions, of which Holdings
(or XJT Holdings or ExpressJet Airlines) is, or would be if it were not a
subsidiary of Continental, the common parent, and any corporation or other
entity which would be a member of such group for the relevant taxable period or
portion thereof.

                                      -3-
<PAGE>

         "Holdings Group Combined Tax Liability" means, with respect to any
taxable period, the Holdings Group's liability for Non-Federal Combined Taxes as
determined under Section 4.3 of this Agreement.

         "Holdings Group Federal Income Tax Liability" means, with respect to
any taxable period, the Holdings Group's liability for Federal Income Taxes as
determined under Section 4.2 of this Agreement.

         "Holdings Group Taxpayer" means (i) Holdings and any member of the
Holdings Group, (ii) any entity that ceases to be a Holdings Group Taxpayer
other than in a taxable sale of 100% of the stock (or other ownership interests)
of such entity and any affiliated group of corporations as defined in Section
1504(a) of the Code (or similar group of entities as defined under corresponding
provisions of the laws of other jurisdictions) of which any such entity is or
becomes a member, (iii) any entity to which assets of a Holdings Group Taxpayer
are transferred (other than entities that acquire assets in a transaction in
which all gain or loss is recognized or a transaction to which section 1031 of
the Code applies), and (iv) any entity with which a Holdings Group Taxpayer
engages in a merger, consolidation or similar combination (unless such merger,
consolidation or combination is a transaction in which all gain or loss is
recognized).

         "Internal Restructuring" means the transfer of assets and liabilities
of XJT Holdings to ExpressJet Airlines in exchange for common stock and Series A
Preferred Stock of ExpressJet Airlines pursuant to the Asset Purchase and Sale
Agreement, dated as of April 16, 2002, by and between XJT Holdings and
ExpressJet Airlines and the sale of such Series A Preferred Stock pursuant to
the Series A Preferred Stock Purchase Agreement, dated as of April 15, 2002, by
and between XJT Holdings and Boeing Capital Loan Corporation.

         "Income Tax" means (a) any Tax based upon, measured by, or calculated
with respect to (1) net income or profits (including, without limitation, any
capital gains Tax, minimum Tax and any Tax on items of Tax preference, but not
including sales, use, real or personal property, gross or net receipts, transfer
or similar Taxes) or (2) multiple bases if one or more of the bases upon which
such Tax may be based, measured by, or calculated with respect to, is described
in clause (1) above, or (b) any United States state or local franchise Tax.

         "LIBOR" means, for each month (or portion thereof) during any period,
an interest rate per annum equal to the rate per annum reported, on the date two
days prior to the first day of such month, on the Telerate Page 3750 (of if such
screen shall cease to be publicly available, as reported on Reuters Screen page
"LIBO" or by any other publicly available source of such market rate) for London
interbank offered rates for United States dollar deposits for such month (or
portion thereof).

         "Person" means and includes any individual, partnership, joint venture,
limited liability company, corporation, association, joint stock company, trust,
unincorporated organization or similar entity or a governmental authority or any
department or agency or other unit thereof.

         "Potential Reduction" has the meaning set forth in Section 4.10.

                                      -4-
<PAGE>

          "Pre-Deconsolidation Period" means any taxable period with respect to
a Consolidated Return or Combined Return, as the case may be, ending on or
before or that includes a Deconsolidation Date.

         "Pro Forma Holdings Group Combined Return" means a pro forma
non-federal Combined Tax return or other schedule prepared pursuant to Section
4.3 or Section 4.8 of this Agreement.

         "Pro Forma Holdings Group Consolidated Return" means a pro forma
consolidated Federal Income Tax return or other schedule prepared pursuant to
Section 4.2 or Section 4.8 of this Agreement.

         "Proceeding" means any assessment, audit, or other examination by any
Tax Authority, relating to Taxes (including Refunds), whether administrative or
judicial, and any appeal of the foregoing.

         "Realized Tax Benefit"  has the meaning set forth in Section 4.8(b)

         "Refund" means any refund of Taxes, including any reduction in Tax
liabilities by means of a credit, offset or otherwise

         "Representatives" means with respect to any Person, any of such
Person's directors, officers, employees, agents, consultants, advisors,
accountants, attorneys and representatives.

         "Separate Return" means any Tax Return with respect to Holdings or any
Holdings Affiliate other than a Consolidated Return or a Combined Return.

         "Stand-Alone Attributes" means with respect to each jurisdiction in
which a Consolidated Return or Combined Return is filed, the Tax Attributes that
would have been available to the Holdings Group at the end of the period that
includes the Deconsolidation Date assuming that:

         (i) the members of the Holdings Group had not been included in any
Consolidated Return or Combined Return of Continental in any Pre-Deconsolidation
Period;

         (ii) the utilization of any Tax Attribute carryforward by Holdings was
subject to the limitation described in Section 4.2(h);

         (iii) the Tax Attributes of the Holdings Group are reduced by the
amount of any such Tax Attributes utilized on a Consolidated Return or Combined
Return for which a member of the Holdings Group was previously compensated under
section 4.7 of the Original Tax Agreement or otherwise; and

         (iv) the Internal Restructuring had not occurred and any Tax Items
associated with the Internal Restructuring are ignored.

         "Tax" means any charges, fees, levies, imposts, duties, or other
assessments of a similar nature, including income, alternative or add-on
minimum, gross receipts, profits, lease, service,

                                      -5-
<PAGE>

service use, wage, wage withholding, employment, workers compensation, business
occupation, occupation, premiums, environmental, estimated, excise, employment,
sales, use, transfer, license, payroll, franchise, severance, stamp, occupation,
windfall profits, withholding, social security, unemployment, disability, ad
valorem, highway use, commercial rent, capital stock, paid up capital,
recording, registration, property, real property gains, value added, business
license, custom duties, or other tax or governmental fee of any kind whatsoever,
imposed or required to be withheld by any Tax Authority including any interest,
or penalties applicable or related thereto.

         "Tax Attribute" means a consolidated net operating loss, a consolidated
net capital loss, a consolidated unused investment credit, a consolidated unused
foreign tax credit, or a consolidated excess charitable contribution (as such
terms are used in Treasury Regulations 1.1502-79 and 1.1502-79A), or a U.S.
federal minimum tax credit or U.S. federal general business credit (but not tax
basis or earnings and profits) or any comparable Tax Item reflected on a
Combined Return that arises in a Pre-Deconsolidation Period (including the
taxable period in which a Deconsolidation Date occurs) and can be carried to a
taxable period ending after a Deconsolidation Date.

         "Tax Authority" means a governmental authority (foreign or domestic) or
any subdivision, agency, commission or authority thereof or any
quasi-governmental or private body having jurisdiction over the assessment,
determination, collection or imposition of any Tax (including, without
limitation, the Internal Revenue Service).

         "Tax Benefit Payment" means payments made pursuant to Sections
4.8(a)(ii) and (iii).

         "Tax Benefit Percentage" has the meaning set forth in Section 4.8(c)

         "Tax Detriment Payment" means payments made pursuant to Sections
4.8(a)(i).

         "Tax Item" means any item of income, gain, loss, deduction, credit or
other item reflected on a Tax Return or any Tax Attribute.

         "Tax Return" means any return, report, certificate, form or similar
statement or document (including, any related or supporting information or
schedule attached thereto and any information return, amended Tax Return, claim
for Refund or declaration of estimated tax) required to be supplied to, or filed
with, a Tax Authority in connection with the determination, assessment or
collection of any Tax or the administration of any laws, regulations or
administrative requirements relating to any Tax.

         "Treasury Regulations" means the final, temporary and proposed income
tax regulations promulgated under the Code, as such regulations may be amended
from time to time (including corresponding provisions of succeeding
regulations).

         "XJT Holdings" means XJT Holdings, a Delaware corporation, formerly
known as ExpressJet Airlines, Inc.

                                      -6-
<PAGE>

                                   ARTICLE II
                      FILING AND PREPARATION OF TAX RETURNS

      SECTION 2.1 IN GENERAL.

         (a) Continental shall have the sole and exclusive responsibility for
the preparation and filing of, and shall prepare and file or cause to be
prepared and filed: (1) all Consolidated Returns and (2) all Combined Returns.
Holdings hereby consents to be included in all such Tax returns.

         (b) Except as otherwise provided in Section 2.1(a) or Section 2.1(c),
Holdings shall have the sole and exclusive responsibility for the preparation
and filing of, and shall prepare and file or cause to be prepared and filed, all
Tax Returns of Holdings and any Holdings Affiliate. In filing such Tax Returns,
Holdings agrees to take (and to cause each Holdings Affiliate to take) all
available action to elect not to carry back losses incurred in periods ending
after the Deconsolidation Date to Pre-Deconsolidation Periods for which
Consolidated Retuns or Combined Returns were filed.

         (c) Notwithstanding section 2.1(b), Continental has the right to
control the manner in which Holdings or any Holdings Group Taxpayer prepares any
Tax Return filed with respect to a period ending on or before the second
anniversary of the Closing of the Initial Public Offering to the extent such Tax
Return involves the Allocated Attributes, treatment of the Internal
Restructuring described in Section 2.3, the basis of any tangible or intangible
asset transferred in the Internal Restructuring, the eligibility of any such
asset to be subject to the allowance for depreciation or amortization, or the
amount of any deduction for depreciation or amortization relating to any such
asset. Holdings shall submit all such Tax Returns to Continental (no later than
30 days prior to the earlier of the due date for the filing of such Tax Returns
(taking into account applicable extensions) and the date on which such Tax
Return is filed) for Continental's review and approval, and will make all
changes requested by Continental. Except as otherwise required by a Final
Determination, Holdings and each Holdings Group Taxpayer shall file all Tax
Returns for periods ending after the second anniversary of the Closing of the
Initial Public Offering in a manner consistent with the prior Tax Returns to the
extent such Tax Returns relate to the Allocated Attributes, the Tax treatment of
the Internal Restructuring described in section 2.3, the basis of any tangible
or intangible asset transferred in the Internal Restructuring, the eligibility
of any such asset to be subject to the allowance for depreciation or
amortization, or the amount of any deduction for depreciation or amortization
relating to any such asset. Notwithstanding the forgoing, neither Holdings nor
any Holdings Group Taxpayer shall be required under this section 2.1(c) to take
any position on a Tax Return for which "substantial authority" does not exist
within the meaning of section 6662 of the Code and the Treasury regulations
promulgated thereunder.

                                      -7-
<PAGE>

      SECTION 2.2 MANNER OF PREPARING AND FILING TAX RETURNS.

         (a) Continental shall have the exclusive right, in its sole discretion,
to make all decisions relating to any Tax Return described in Section 2.1(a) of
this Agreement, including the right to determine (1) the manner in which such
Tax Return shall be prepared and filed, including the elections, methods of
accounting, positions, conventions and principles of taxation to be used and the
manner in which any Tax Item shall be reported, (2) whether any extensions may
be requested, (3) the elections that will be made or revoked by Continental,
each Continental Affiliate, Holdings, and each Holdings Affiliate on such Tax
Return, (4) whether any amended Tax Returns shall be filed, (5) whether any
claims for Refund shall be made, (6) whether any Refunds shall be paid by way of
refund or credited against any liability for the related Tax, and (7) whether to
retain outside firms to prepare or review such Tax Return, whom to retain for
such purpose and the scope of any such retention.

         (b) Holdings shall, at its expense, be responsible for preparing (or
causing to be prepared) and shall provide to Continental (or cause to be so
provided), all information that Continental shall reasonably request, in such
form as Continental shall reasonably request, relating to the rights and
obligations of Continental with respect to Taxes and Tax Returns hereunder,
including any such information so requested to enable Continental to prepare the
Tax Returns that it is required to prepare under Section 2.1 and allocate Taxes
as required by this Agreement (which information shall be provided by Holdings
no later than the later of thirty days following Continental's request for such
information or ten (10) days prior to the due date (not taking into account
extensions) of such Tax Return).

         (c) In the event that a Tax Item affects a Tax Return described in
Section 2.1(a) of this Agreement and also affects a Tax Return described in
Section 2.1(b) of this Agreement that is filed after the date of this Agreement,
Holdings shall, to the extent permitted by law, conform the treatment of such
Tax Item in any Tax Return described in Section 2.1(b) of this Agreement to the
treatment of such Tax Item in the applicable Tax Return described in Section
2.1(a) of this Agreement.

      SECTION 2.3 TREATMENT OF INTERNAL RESTRUCTURING. Continental shall treat
(and shall cause each Continental Affiliate to treat) and Holdings shall treat
(and shall cause each Holdings Group Taxpayer to treat) the transfer of tangible
and intangible assets by XJT Holdings to ExpressJet Airlines in connection with
the Internal Restructuring as a taxable sale of such assets to ExpressJet
Airlines for federal income tax purposes. Not later than (60) days after the end
of the Tax year of Continental that includes the Deconsolidation, Continental
shall provide Holdings a schedule (and related supporting documentation)
listing, as of the Deconsolidation Date, the basis allocable to each class of
assets of ExpressJet Airlines and the period, if any, over which such class of
assets is amortizable or depreciable for federal income tax purposes. Absent a
Final Determination to the contrary or a change in applicable law, Continental
shall (and shall cause each Continental Affiliate to) and Holdings shall (and
will cause each Holdings Group Taxpayer to) file all federal income Tax Returns
in a manner consistent with such schedule. Continental and Holdings agree that
all calculations under this Agreement will be made in a manner consistent with
such schedule. Notwithstanding the forgoing, no Holdings Group Taxpayer shall be
required under this section 2.3 to take any position on a Tax Return for which
"substantial

                                      -8-
<PAGE>

authority" does not exist within the meaning of section 6662 of the Code and the
Treasury regulations promulgated thereunder.

                                   ARTICLE III
                       Payment of Taxes to Tax Authorities

      SECTION 3.1 CONSOLIDATED AND COMBINED TAXES. Continental shall timely pay
(or cause to be paid) to the appropriate Tax Authority all Taxes with respect to
each Consolidated Return and each Combined Return due for all
Pre-Deconsolidation Periods.

      SECTION 3.2 SEPARATE TAXES. Holdings shall timely pay (or cause to be
paid) to the appropriate Tax Authorities all Taxes of Holdings or any member of
the Holdings Group reflected on a Separate Return and, except as provided below,
shall have no claim against Continental or any Continental Affiliate for any
such Taxes.

                                   ARTICLE IV
                               Allocation of Taxes

      SECTION 4.1 HOLDINGS' LIABILITY FOR CONSOLIDATED AND COMBINED TAXES. For
each Pre-Deconsolidation Taxable Period, Holdings shall be liable to Continental
for the Holdings Group Federal Income Tax Liability and the Holdings Group
Combined Tax Liability for such taxable period.

      SECTION 4.2 HOLDINGS GROUP FEDERAL INCOME TAX LIABILITY. The Holdings
Group Federal Income Tax Liability for a period shall be the Federal Income
Taxes for such taxable period, as determined on a Pro Forma Holdings Group
Consolidated Return prepared:

      (a)   assuming that the members of the Holdings Group were not included in
            the Continental Consolidated Group for all Pre-Deconsolidation
            Periods;

      (b)   except as provided in section 4.2(f), using all elections,
            accounting methods and conventions used on the Consolidated Return
            for such period;

      (c)   applying the highest statutory marginal corporate income Tax rate in
            effect for such taxable period (or portion thereof);

      (d)   assuming that the Tax Attributes of the Holdings Group are reduced
            by the amount of any such Tax Attributes utilized on a Consolidated
            Return or Combined Return for which a member of the Holdings Group
            was previously compensated under section 4.7 of the Original Tax
            Agreement or otherwise;

      (e)   assuming the exemption amount in section 55 of the Code for such
            year equals zero and that the amount specified in section 59(a)(a)
            of the Code is zero;

      (f)   assuming that the Holdings Group elects not to carry back any net
            operating losses;

                                      -9-
<PAGE>

      (g)   ignoring the effects of the Internal Restructuring; and

      (h)   assuming that the utilization of any Tax Attribute carryforward by
            Holdings (including, but not limited to, the Holdings Group's
            deduction for any net operating loss carryforwards under section 172
            of the Code, any capital loss carryforwards, any charitable
            contribution carryforwards or any Tax credits) is limited to the
            amount of such Tax Attributes that would be utilized on the
            Consolidated Return for such period ignoring the effect of the
            Internal Restructuring.

      SECTION 4.3 HOLDINGS GROUP COMBINED TAX LIABILITY. With respect to any
Pre-Deconsolidation Period, the Holdings Group Combined Tax Liability shall be
the sum for such taxable period of the Holdings Group's liability for each
Non-Federal Combined Tax, as determined on Pro Forma Holdings Group Combined
Returns prepared in a manner consistent with the principles and procedures set
forth in Section 4.2 hereof.

      SECTION 4.4 PREPARATION AND DELIVERY OF PRO FORMA TAX RETURNS. With
respect to Pre-Deconsolidation Periods for which the Tax Return has not been
filed as of the date hereof, not later than thirty (30) days following the date
on which the related Consolidated Return or Combined Return, as the case may be,
is filed with the appropriate Tax Authority, Continental shall prepare and
deliver to Holdings a pro forma Tax Return calculating the Holdings Group
Federal Income Tax Liability or the Holdings Group Combined Tax Liability which
is attributable to the period covered by such filed Tax Return.

      SECTION 4.5 INSTALLMENT PAYMENTS AND EXTENSIONS.

         (a) Estimated Consolidated Taxes. Not later than five (5) days prior to
each Estimated Tax Installment Date with respect to any Consolidated Return for
a Pre-Deconsolidation Period, Continental may reasonably determine under the
principles of Section 6655 of the Code the estimated amount of the related
installment of the Holdings Group Federal Income Tax Liability and provide
Holdings with a written notice of such determination. Holdings shall pay to
Continental no later than the Estimated Tax Installment Date the amount thus
determined.

         (b) Estimated Combined Taxes. Following the payment of any installment
payment with respect to any Combined Tax Return for any Pre-Deconsolidation
Period, Continental may reasonably determine the estimated amount of the
Holdings Group Federal Income Tax Liability and Holdings Group Combined Tax
Liability and within the first twenty (20) days following such payment provide
Holdings with a written notice of such determination. Holdings shall pay to
Continental the amount thus determined within five (5) days of the receipt of
such notice.

         (c) Extensions. If Continental files for an extension of time to file a
Tax Return relating to Consolidated Taxes or Combined Taxes for a
Pre-Deconsolidation Period, not later than five (5) days prior to due date of
such Tax return (without extension), (i) Continental will provide to Holdings a
good faith estimate of the Holdings Group Federal Income Tax Liability or
Holdings Group Combined Tax Liability for the entire period cover by the Tax
Return, and (ii) to the extent such amount differs from the aggregate amount of
payments made pursuant

                                      -10-
<PAGE>

to Sections 4.5(a) or (b) with respect to the Taxes covered by such Tax Return,
Holdings shall pay to Continental, or Continental shall pay to Holdings, as
appropriate, the amount of such difference.

      SECTION 4.6 TRUE-UP PAYMENTS.

         (a) Consolidated Taxes. Not later than fifteen (15) days following the
completion and delivery to Holdings of the Pro Forma Holdings Group Consolidated
Return for any Pre-Deconsolidation Period, Holdings shall pay to Continental, or
Continental shall pay to Holdings, as appropriate, an amount equal to (i) the
difference, if any, between the Holdings Group Federal Income Tax Liability for
such period and the aggregate amount paid by Holdings with respect to such
period under Sections 4.5(a) and (c) of this Agreement and Section 4.5(a) of the
Original Tax Agreement, plus (ii) interest on such amount computed (A) in the
case of payments from Holdings to Continental, under principles of Code Sections
6601 and 6655 substituting the Agreed Rate for the interest rates provided for
in such Code sections, and (B) in the case of payments from Continental to
Holdings, under principles of Code Section 6611 substituting the Agreed Rate for
the interest rates provided for in such Code section.

         (b) Combined Taxes. Not later than fifteen (15) days following the
completion and delivery to Holding of the Pro Forma Holdings Group Combined
Return of any for any Pre-Deconsolidation Period, Holdings shall pay to
Continental, or Continental shall pay to Holdings, as appropriate, an amount
equal to (i) the difference, if any, between the Holdings Group Combined Tax
Liability for the Pre-Deconsolidation Period and the amounts paid by Holdings
with respect to such period under Sections 4.5(b) and (c) of this Agreement and
Section 4.5(b) of the Original Tax Agreement, plus (ii) interest on such amount
computed (A) in the case of payments from Holdings to Continental, under
principles of Code Sections 6601 and 6655 substituting the Agreed Rate for the
interest rates provided for in such Code sections, and (B) in the case of
payments from Continental to Holdings, under principles of Code Section 6611
substituting the Agreed Rate for the interest rates provided for in such Code
section.

      SECTION 4.7 [Intentionally Omitted]

      SECTION 4.8 COMPENSATION FOR TAX BENEFITS.

         (a) Tax Detriment/Benefit Payments. With respect to each taxable period
ending after the Deconsolidation Date, Continental and Holdings will make the
following payments in the manner provided in Section 4.8(d):

                  (i) Continental shall pay to Holdings 100% of the amount of
any Realized Tax Detriment;

                  (ii) Holdings shall pay 100% of the amount of any Realized Tax
Benefit to Continental until the cumulative amount of all payments made pursuant
to this Section 4.8(a)(ii) equals the cumulative amount of Payments made by
Continental pursuant to Section 4.8(a)(i) that are attributable to Tax Items
resulting from the Internal Restructuring; and

                                      -11-
<PAGE>

                  (iii) Holdings shall pay to Continental the product of (A) any
Realized Tax Benefit for such period in excess of those included in Section
4.8(a)(ii), multiplied by (B) the applicable Tax Benefit Percentage.

         (b) Calculation of Realized Tax Detriment and Realized Tax Benefit.

                  (i) The Realized Tax Detriment for any taxable period is the
excess, if any, of the actual liability for Taxes of Holdings Group Taxpayers
with respect to such period (computed assuming that the Holdings Group Taxpayers
make all available elections to cause any losses to be carried forward to future
periods rather than carried back to prior years) over the Adjusted Holdings Tax
Liability.

                  (ii) The Realized Tax Benefit for any taxable period is the
excess, if any, of the Adjusted Holdings Tax Liability over the actual liability
for Taxes of the Holdings Group Taxpayers with respect to such period (computed
assuming that the Holdings Group Taxpayers make all available elections to cause
any losses to be carried forward to future periods rather than carried back to
prior years).

                  (iii) For purposes of this Section 4.8(b), the Adjusted
Holdings Tax Liability is the Tax liability of the Holdings Group Taxpayers
calculated (A) using the same methods and elections used on the relevant Tax
Returns as filed, (B) excluding the effects of the Internal Restructuring
(including any Tax Items associated with the Internal Restructuring that are
recognized as a result of the Deconsolidation), (C) assuming the Tax Attributes
of the Holdings Group as of the end of the year that includes the
Deconsolidation Date equaled the Stand-Alone Attributes, and (D) assuming that
all available elections are made to cause any losses to be carried forward to
future periods rather than carried back to prior year. The calculation of
Adjusted Holdings Tax Liability shall take into account any tax consequences of
an "ownership change" of Holdings within the meaning of section 382 of the Code
resulting from any sales of Holdings stock pursuant to or after the Initial
Public Offering.

                  (iv) It is the intent of the parties that no Tax Item shall
result in duplicate payments under this Agreement, and accordingly, once a Tax
Item has been reflected in the calculation of Realized Tax Benefit or Realized
Tax Detriment, subsequent calculations of those amounts shall be performed in a
manner so as to avoid any duplication of benefit for the same Tax Item.

                                      -12-
<PAGE>

         (c) Calculation of Tax Benefit Percentage.

                  (i) The Tax Benefit Percentage equals (A) 100% until the
Holdings Group Taxpayers have Realized Tax Benefits attributable to Expected
Restructuring Deductions in an aggregate amount equal to 33.33% of the total
Expected Restructuring Deductions, (B) 90% until the Holdings Group Taxpayers
have Realized Tax Benefits attributable to additional Expected Restructuring
Deductions equal to 33.33% of the total Expected Restructuring Deductions, and
(C) 80% for the remaining Realized Tax Benefits. Notwithstanding the forgoing,
for any period beginning after December 31, 2018, the Tax Benefit Percentage
shall be 100%.

                  (ii) For purposes of the calculation of Tax Benefit
Percentage, the Expected Restructuring Deductions shall equal the total increase
in the basis of tangible and intangible assets of Holdings resulting from the
Internal Restructuring that are actually subject to amortization or depreciation
for federal income tax purposes.

         (d) Estimated Payments and True-Up.

                  (i) Not later than five (5) days prior to each Estimated Tax
Installment Date of the Holdings Group (or any member thereof) , (i) Holdings
will provide to Continental a good faith estimate of the anticipated Tax
Detriment Payment or Tax Benefit Payment expected to accrue under the principles
of Section 6655 of the Code during the period to which the Estimated Tax
Installment Date relates and (ii) Holdings shall pay to Continental, or
Continental shall pay to Holdings, as appropriate, such estimated amount.
Notwithstanding the foregoing, no payment will be required to be made under this
Section 4.8(d)(i) prior to fifteen (15) days following the delivery of the
schedule described in Section 2.3.

                  (ii) If the Holdings Group (or a member thereof) files for an
extension of time to file a Tax Return, not later than five (5) days prior to
due date of such Tax return (without extension), (i) Holdings will provide to
Continental a good faith estimate of the anticipated Tax Detriment Payment or
Tax Benefit Payment expected to accrue during the entire period cover by the Tax
Return and (ii) to the extent such amount differs from the aggregate amount of
payments made pursuant to Section 4.8(d)(i), Holdings shall pay to Continental,
or Continental shall pay to Holdings, as appropriate, the amount of such
difference. Notwithstanding the foregoing, no payment or will be required to be
made under this Section 4.8(d)(ii) prior to fifteen (15) days following the
delivery of the schedule described in Section 2.3.

                  (iii) Not later than fifteen (15) days following the filing of
the applicable Tax Return, Holdings shall provide to Continental for its review
the calculation of the Tax Detriment Payment or Tax Benefit Payment for the
period covered by such Tax Return. Not later than fifteen (15) days following
the delivery of the calculation of the Tax Benefit Payment for the period,
Holdings shall pay to Continental, or Continental shall pay to Holdings, as
appropriate, an amount equal to (A) the difference, if any, between the Tax
Detriment Payment or Tax Benefit Payment for the period covered by the Tax
Return and the aggregate amount of any payments made under Section 4.8(d)(i) and
(ii) with respect to such period, plus (B) interest on such amount computed (1)
in the case of payments from Holdings to Continental, under principles of Code
Sections 6601 and 6655 substituting the Agreed Rate for the interest rates
provided

                                      -13-
<PAGE>

for in such Code sections, and (2) in the case of payments from Continental to
Holdings, under principles of Code Section 6611 substituting the Agreed Rate for
the interest rates provided for in such Code section.

         (e) Separate Application for Each Tax Jurisdiction. The payment
obligations and calculations made pursuant to this section 4.8 shall be made
separately for each jurisdiction in which the Holdings Group (or any Member
thereof) is subject to Income Tax, and in the case of a taxing jurisdiction
other than the United States, references in section 4.8 to provisions the Code
shall be to any similar provision of the laws of such other jurisdiction.

         (f) Prior Compensation. Notwithstanding any other provision of this
section 4.8, in no event shall a party to this Agreement be required to make any
payment pursuant to this section to the extent compensation was previously paid
for the same Tax Attributes or Tax Items pursuant to section 4.7 of the Original
Tax Agreement or otherwise.

      SECTION 4.9 SUBSEQUENT CHANGES IN TREATMENT OF TAX ITEMS. In the event of
a change in the treatment of any Tax Item of any member of the Continental Group
or any Holdings Group Taxpayer for any taxable period as a result of a Final
Determination, the filing of a claim for Refund, the filing of an amended Tax
Return for such period or the reflection of a change in treatment reflected in a
subsequently filed Tax Return (a "Change Event"), the following steps shall be
taken:

         (a) To the extent the change affects a Pre-Deconsolidation Period,
Continental shall prepare Pro Forma Holdings Group Consolidated Returns and/or
Pro Forma Holdings Group Combined Returns, as appropriate, for each such period
with and without the changed Tax Items and determine the amount of change, if
any, in the amount of the Holdings Group Federal Income Tax Liability and/or the
Holdings Group Combined Tax Liability for each such period that results from the
change. If the change results in a net increase in the Holdings Group Federal
Income Tax Liability and Holdings Group Combined Tax Liability for all affected
periods, Holdings shall pay to Continental the amount of the increase no later
than twenty (20) days following the relevant Change Event. If the change results
in a net decrease in the Holdings Group Federal Income Tax Liability and
Holdings Group Combined Tax Liability for all affected periods, Continental
shall pay to Holdings the amount of the increase no later than twenty (20) days
following the relevant Change Event.

         (b) To the extent the change affects a taxable period ending after the
Deconsolidation Date, the Tax Detriment Payments and Tax Benefit Payments shall
be recalculated under Section 4.8. If the recalculated payment differs from the
original amount, Holdings shall pay to Continental, or Continental shall pay to
Holdings, as appropriate, an amount equal to such difference, no later than
twenty (20) days following the relevant Change Event. In performing the
recalculations required by this paragraph, the Adjusted Holdings Tax Liability
will not include any interest and penalties from the relevant change (to the
extent such interest and penalties result from changes to the Tax treatment of
the Internal Restructuring described in Section 2.3), with the result that any
such interest and penalties incurred by a Holdings Group Taxpayer will decrease
the recalculated Tax Benefit Payments or increase the recalculated Tax Detriment
Payments. As appropriate, to the extent that a recalculated payment made
pursuant to this Section 4.9(b)

                                      -14-
<PAGE>

does not include interest (or a similar charge) paid to a Tax Authority, such
recalculated payment shall include interest computed under the principles of
4.8(d)(iii).

      SECTION 4.10 ESCROW OF TAX BENEFIT PAYMENTS. If Continental or any member
of the Continental Group or any Holdings Group Taxpayer receives a notice of
proposed adjustment (I.R.S. Form 5701), a final audit report, a statutory notice
of deficiency or similar written notice from any Tax Authority (collectively, a
"Change Notice"), which, if sustained, would result in Continental being
required to make a payment to Holdings under section 4.9(b) with respect to Tax
Benefit Payments made prior to the receipt of the Change Notice or a reduction
in future Tax Benefit Payments required to be paid pursuant to by Holdings to
Continental (collectively, the "Potential Reduction"), then:

         (a) From the date such Change Notice is received until there is a Final
Determination with respect to the adjustments proposed therein, any Tax Benefit
Payments required to be made by Holdings to Continental pursuant to section 4.8
shall instead be paid by Holdings (i) first, to a mutually agreed upon escrow
agent that will hold such funds until such Final Determination is received with
respect to the Change Notice, until the amount held by the escrow agent equals
the Potential Reduction, and (ii) thereafter, to Continental.

         (b) If the Final Determination (i) results in no adjustment to the Tax
Benefit Payments, then the escrowed funds (along with interest earned thereon)
shall be distributed to Continental, and (ii) results in an adjustment to the
Tax Benefit Payments, the escrowed funds (along with interest earned thereon)
shall be distributed to Continental and/or Holdings in accordance with the
recalculated Tax Benefit Payment determined under Section 4.9.

                                    ARTICLE V
                                 Tax Attributes

      SECTION 5.1 ALLOCATION OF TAX ITEMS UPON DECONSOLIDATION.

         (a) In General. All Tax computations for any period that includes a
Deconsolidation Date, shall be made pursuant to the principles of Section
1.1502-76(b) of the Treasury Regulations or of a corresponding provision under
the laws of other jurisdictions. For the avoidance of doubt, the parties agree
that the Tax Items relating to the Internal Restructuring are attributable to
the Pre-Deconsolidation Period and will be reflected on the appropriate
Consolidated Return and Combined Return.

         (b) Reattribution. Continental may, at its option, elect to reattribute
to itself certain Tax Items of the Holdings Group pursuant to Section
1.1502-20(g) of the Treasury Regulations. If Continental makes such election,
Holdings shall comply with the requirements of Section 1.1502-20(g)(4) of the
Treasury Regulations.

      SECTION 5.2 ALLOCATION OF TAX ATTRIBUTES. To the extent permitted by
applicable law, the relevant Tax Attributes with respect to the Consolidated
Group or Combined Group, as the case may be, shall be allocated (except as
otherwise provided under section 5.1(b)) to the corporation or entity that
created or generated such Tax Attributes.

                                      -15-
<PAGE>

      SECTION 5.3 EARNINGS AND PROFITS. The Federal Income Tax liability of the
Consolidated Group shall, for purposes of determining the earnings and profits
of each member, be allocated in accordance with the methods prescribed in
Treasury Regulation section 1.1552-1(a)(2) and Treasury Regulation section
1.1502-33(d)(2)(ii) (using 100% as the fixed percentage).

                                   ARTICLE VI
                        Additional Rights and Obligations

      SECTION 6.1 PROVISION OF INFORMATION AND MUTUAL COOPERATION.

         (a) Holdings shall (and shall cause the Holdings Affiliates to), (1)
furnish to Continental in a timely manner such information, documents and other
materials as Continental may reasonably request for purposes of (i) preparing
any Tax Return (or pro forma Tax return prepared in accordance with Section 4
hereof) or portion thereof for which the Continental has responsibility for
preparing under this Agreement, (ii) contesting or defending any Proceeding, and
(iii) making any determination or computation necessary or appropriate under
this Agreement, (2) make its employees available to the other to provide
explanations of documents and materials and such other information as the other
may reasonably request in connection with any of the matters described in
subclauses (i), (ii) and (iii) of clause (1) above, and (3) reasonably cooperate
in connection with any Proceeding. Except as provided in section 2.1(c),
Continental shall not be entitled to review the Tax Returns and associated
workpapers and similar documents of Holdings. Notwithstanding any other
provision of this Agreement, no member of the Holdings Group shall be required
to provide Continental or any Continental Affiliate access to or copies of (1)
any Tax information as to which any member of the Holdings Group is entitled to
assert the protection of any privilege, or (2) any Tax information as to which
any member of the Holdings Group is subject to an obligation to maintain the
confidentiality of such information. If a dispute arises regarding accuracy of
any information required to be supplied pursuant to this section 6.1(a),
Holdings and Continental shall engage an Independent Entity pursuant to the
procedures in Section 8.1 to resolve any such dispute.

         (b) Continental shall (and shall cause the Continental Affiliates to)
(1) furnish to the Holdings in a timely manner such information, documents and
other materials as Holdings may reasonably request for purposes of (i) preparing
any Tax Return (or pro forma Tax return prepared in accordance with Section 4
hereof) or portion thereof for which the other has responsibility for preparing
under this Agreement, (ii) contesting or defending any Proceeding, and (iii)
making any determination or computation necessary or appropriate under this
Agreement, (2) make its employees available to the other to provide explanations
of documents and materials and such other information as the other may
reasonably request in connection with any of the matters described in subclauses
(i), (ii) and (iii) of clause (1) above, and (3) reasonably cooperate in
connection with any Proceeding. Notwithstanding any other provision of this
Agreement, no member of the Continental Group shall be required to provide
Holdings or any Holdings Affiliate access to or copies of (1) any Tax
information that relates exclusively to any member of the Continental Group, (2)
any Tax information as to which any member of the Continental Group is entitled
to assert the protection of any privilege, or (3) any Tax information as to
which any member of the Continental Group is subject to an obligation to
maintain the confidentiality of such information. Continental shall use
reasonable efforts to separate any such information from

                                      -16-
<PAGE>

any other information to which Holdings is entitled to access or to which
Holdings is entitled to copy under this Agreement, to the extent consistent with
preserving its rights under this Section 6.1(b). If a dispute arises regarding
accuracy of any information required to be supplied pursuant to this section
6.1(b), Holdings and Continental shall engage an Independent Entity pursuant to
the procedures in Section 8.1 to resolve any such dispute.

      SECTION 6.2 INDEMNIFICATION.

         (a) Failure to Pay. Continental and each Continental Affiliate shall
jointly and severally indemnify Holdings and each Holdings Affiliate, and hold
them harmless from and against any Tax or Losses that are attributable to, or
results from the failure of Continental or any Continental Affiliate to make any
payment required to be made under this Agreement. Holdings and each Holdings
Affiliate shall jointly and severally indemnify Continental and each Continental
Affiliate, and hold them harmless from and against any Tax or Losses that are
attributable to, or results from, the failure of Holdings or any Holdings
Affiliate to make any payment required to be made under this Agreement.

         (b) Inaccurate or Incomplete Information. Continental and each
Continental Affiliate shall jointly and severally indemnify Holdings, each
Holdings Affiliate and each of their respective Representatives, and hold them
harmless from and against any net Taxes or net Losses attributable to
Continental or any Continental Affiliate supplying Holdings or any Holdings
Affiliate with inaccurate or incomplete information, in connection with the
preparation of any Tax Return, any Proceeding, or any calculation under this
Agreement. Holdings and each Holdings Affiliate shall jointly and severally
indemnify Continental, each Continental Affiliate and their respective
Representatives, and hold them harmless from and against any net Taxes or net
Losses attributable to Holdings or any Holdings Affiliate supplying Continental
or any Continental Affiliate with inaccurate or incomplete information, in
connection with the preparation of any Tax Return, any Proceeding or any
calculation under this Agreement.

      SECTION 6.3 INTEREST. Unless a different rate of interest is provided for
in this Agreement, payments pursuant to this Agreement that are not made within
the period prescribed in this Agreement or, if no period is prescribed, within
fifteen (15) days after demand for payment is made, shall bear interest through
and including the date of payment at a per annum rate equal the Agreed Rate or
such lesser rate as may be required by applicable law. Such interest will be
payable at the same time as the payment to which it relates and shall be
calculated based on a year of 365 or 366 days, as appropriate, for the actual
number of days for which due.

      SECTION 6.4 CLOSING OF TAX PERIODS. For Federal Income Tax purposes, the
taxable year of the Holdings Group shall end as of the close of the
Deconsolidation Date and, with respect to all other Income Taxes, Continental
(or the appropriate member of the Continental Group) and Holdings (or the
appropriate member of the Holdings Group) shall, unless prohibited by applicable
law, take all action necessary or appropriate to close the taxable period of the
members of the Holdings Group as of the close of the Deconsolidation Date.
Neither any member of the Continental Group nor any member of the Holdings Group
shall take any position inconsistent with the preceding sentence on any Income
Tax Return.

                                      -17-
<PAGE>

                                   ARTICLE VII
                                   Proceedings

      SECTION 7.1 IN GENERAL.

         (a) Subject to Section 7.1(b) of this Agreement, Continental shall have
the exclusive right, in its sole discretion, to control, contest, and represent
the interests of Continental, any Continental Affiliate, Holdings or any
Holdings Group Taxpayer that is a Holdings Affiliate and to resolve, settle or
agree to any deficiency, claim or adjustment proposed, asserted or assessed in
connection with or as a result of any Proceeding relating to (i) any Tax Return
described in Section 2.1(a) of this Agreement or (ii) the Allocated Attributes,
the treatment of the Internal Restructuring, the basis of any tangible or
intangible asset transferred in the Internal Restructuring, the eligibility of
any such asset to be subject to the allowance for depreciation or amortization
or the amount of any deduction for depreciation or amortization relating to any
such asset (in each case without regard for the identity of the taxpayer or the
entity that is responsible for filing the relevant Tax Return). Continental's
rights shall extend to any matter pertaining to the management and control of
any Proceeding, including, without limitation, execution of waivers, choice of
forum and scheduling of conferences. Continental may require Holdings to pay any
Tax with respect to a claim or adjustment described in (i) or (ii) and sue for a
refund, provided that Continental advance to Holdings the amount of such payment
on an interest-free basis. Continental shall use reasonable efforts to cooperate
and coordinate with Holdings or any Holdings Group Taxpayer that is a Holdings
Affiliate with respect to Proceedings described above that also involve Tax
Returns and Tax Items not described in clauses (i) and (ii).

         (b) Except as provided in Section 7.1(a), Holdings shall have the
exclusive right, in its sole discretion, to control, contest, and represent the
interests of Holdings or any Holdings Group Taxpayer in any Proceeding relating
to any Tax Return described in Section 2.1(b) of this Agreement and to resolve,
settle, or agree to any deficiency, claim or adjustment proposed, asserted or
assessed in connection with or as a result of any such Proceeding.

         (c) In addition to the parties' obligations under Section 6.1 of this
Agreement, (i) Holdings shall, and shall cause each Holdings Group Taxpayer that
is a Holdings Affiliate to, cooperate fully with Continental in contesting or
defending any Proceeding described in Section 7.1(a), including, without
limitation, by furnishing to Continental in a timely manner such information,
documents or other materials as Continental may reasonably request and (ii)
Continental shall, and shall cause each Continental Affiliate to, cooperate
fully with Holdings in contesting or defending any Proceeding described in
Section 7.1(b), including, without limitation, by furnishing to Holdings in a
timely manner such information, documents or other materials as Holdings may
reasonably request.

      SECTION 7.2 NOTICE. If Continental or any member of the Continental Group
receives written notice of or relating to, any Proceeding from a Tax Authority
that asserts, proposes or recommends a deficiency, claim or adjustment that, if
sustained, would result in the redetermination of a Tax Item of a Holdings Group
Taxpayer, Continental shall promptly provide a copy of such notice to Holdings
(but in no event later than fifteen (15) days following the receipt of such
notice). If Holdings or any Holdings Group Taxpayer that is a Holdings Affiliate
receives

                                      -18-
<PAGE>

written notice of, or relating to, any Proceeding from a Tax Authority with
respect to a Tax Return described in Section 2.l(a) of this Agreement, Holdings
shall promptly provide a copy of such notice to Continental (but in no event
later than fifteen (15) days following the receipt of such notice).

      SECTION 7.3 FAILURE TO NOTIFY. The failure of Continental or Holdings to
notify the other of any matter relating to a particular Tax for a taxable period
or to take any action specified in this Agreement shall not relieve such other
party of any liability and/or obligation which it may have under this Agreement
with respect to such Tax for such taxable period except to the extent that such
other party's rights hereunder are actually prejudiced by such failure.

                                  ARTICLE VIII
                               Dispute Resolution

      SECTION 8.1 DISPUTE RESOLUTION. In the event that Continental and Holdings
disagree as to the amount or calculation of any payment to be made under this
Agreement, or the interpretation or application of any provision under this
Agreement, the parties shall attempt in good faith to resolve such dispute. If
such dispute is not resolved within sixty (60) days following the commencement
of the dispute, Continental and Holdings shall jointly retain a nationally
recognized law firm or independent public accounting firm, which firm is
independent of both parties (the "Independent Entity"), to resolve the dispute.
The Independent Entity shall act as an arbitrator to resolve all points of
disagreement and its decision shall be final and binding upon all parties
involved. Following the decision of the Independent Entity, Continental and
Holdings shall each take or cause to be taken any action necessary to implement
the decision of the Independent Entity. The fees and expenses relating to the
Independent Entity shall be borne equally by Continental and Holdings.

                                   ARTICLE IX
                                  Miscellaneous

      SECTION 9.1 EFFECTIVENESS. This Agreement shall be effective on closing
date of the Initial Public Offering.

      SECTION 9.2 NOTICES. All notices, requests, demands and other
communications under this Agreement shall be in writing and, unless otherwise
provided herein, shall be deemed to have been duly given (i) on the date of
service if served personally on the party to whom notice is given, (ii) on the
day of transmission if sent via facsimile transmission to the facsimile number
given below; provided, telephonic confirmation of receipt is obtained promptly
after completion of transmission, (iii) on the business day after delivery to an
overnight courier service or the Holdings mail service maintained by the United
States Postal Service, provided, receipt of delivery has been confirmed, or (iv)
on the fifth day after mailing, provided, receipt of delivery is confirmed, if
mailed to the party to whom notice is to be given, by first class mail,
registered or certified, postage prepaid, properly addressed and return-receipt
requested, to the party as follows:

                                      -19-
<PAGE>

      If to Continental or any Continental Affiliate, to:

Continental Airlines, Inc.
      1600 Smith Street, HQSTY
      Houston, Texas  77002
      Attention: Chief Financial Officer
      Telecopy No.: (713) 324-2448

with a copy to:

      Continental Airlines, Inc.
      1600 Smith Street, HQSLG
      Houston, Texas  77002
      Attention: General Counsel
      Telecopy No.: (713) 324-5161

if to Holdings, to:

      ExpressJet Holdings, Inc.
      1600 Smith Street, HQSCE
      Houston, Texas  77002
      Attention:  Chief Financial Officer
      Telecopy No.: (713) 324-4420

Any party may change its address or fax number by giving the other party written
notice of its new address or fax number in the manner set forth above.

      SECTION 9.3 CHANGES IN LAW. Any reference to a provision of the Code or a
law of another jurisdiction shall include a reference to any applicable
successor provision or law.

      SECTION 9.4 SUCCESSORS AND ASSIGNS. This Agreement and all of the
provisions hereof shall be binding upon and inure to the benefit of the parties
and their respective successors and permitted assigns, but neither this
Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by either party without the prior written consent of the other party.
Holdings shall cause any entity that becomes a Holding Group Taxpayer after the
date hereof to agree to be bound by the terms of this agreement and acknowledge
that Continental is a beneficiary of that agreement.

      SECTION 9.5 AUTHORIZATION, ETC. Each of the parties hereto hereby
represents and warrants that it has the power and authority to execute, deliver
and perform this Agreement, that this Agreement has been duly authorized by all
necessary corporate action on the part of such party, that this Agreement
constitutes a legal, valid and binding obligation of such party (subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting creditors' rights generally and general equity principles) and
that the execution, delivery and performance of this Agreement by such party
does not contravene or conflict with any provision of law or of its charter or
bylaws or any agreement, instrument or order binding on such party.

                                      -20-
<PAGE>

      SECTION 9.6 COMPLETE AGREEMENT. This Agreement shall constitute the entire
agreement between Continental or any Continental Affiliate and Holdings or
Holdings Group Taxpayer with respect to the subject matter hereof and shall
supersede all previous negotiations, commitments and writings with respect to
such subject matter. Unless the context indicates otherwise, any reference to
Holdings in this Agreement shall refer to Holdings and each Holdings Group
Taxpayer and any reference to Continental in this Agreement shall refer to
Continental and the Continental Affiliates. Notwithstanding anything to the
contrary herein, nothing in this Agreement shall modify the rights and
obligations of the parties as set forth in the Initial Public Offering
Agreement.

      SECTION 9.7 ORIGINAL TAX AGREEMENT TERMINATED. The Original Tax Agreement
is hereby terminated and no party thereto shall be entitled to pursue any rights
or remedies thereunder after the effective date of this Agreement.

      SECTION 9.8 RIGHTS OF HOLDINGS AND EXPRESSJET AIRLINES Whenever this
Agreement provides for an obligation of Continental to make a payment to
Holdings, the obligation shall be construed as an obligation of Continental to
make a payment to either Holdings or ExpressJet Airlines, and either Holdings or
ExpressJet Airlines shall be entitled to enforce such obligation.

      SECTION 9.9 INTERPRETATION. The Section headings contained in this
Agreement are solely for the purpose of reference, are not part of the agreement
of the parties and shall not in any way affect the meaning or interpretation of
this Agreement. Whenever any words are used herein in the masculine gender, they
shall be construed as though they were also used in the feminine gender in all
cases where they would so apply. The parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement.

      SECTION 9.10 GOVERNING LAW. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Texas
(regardless of the laws that might otherwise govern under applicable principles
of conflicts law) as to all matters, including, without limitation, matters of
validity, construction, effect, performance and remedies.

      SECTION 9.11 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

      SECTION 9.12 LEGAL ENFORCEABILITY. Any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof. Any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

      SECTION 9.13 NO THIRD PARTY BENEFICIARIES. This Agreement is solely for
the benefit of Continental, the Continental Affiliates, Holdings and the
Holdings Group Taxpayers, and is not intended to confer upon any other person
any rights or remedies hereunder.

                                      -21-
<PAGE>

      SECTION 9.14 JURISDICTION; FORUM.

         (a) By the execution and delivery of this Agreement, Continental and
Holdings submit and agree to cause the Continental Affiliates and Holdings
Affiliates, respectively, to submit to the personal jurisdiction of any state or
federal court in the State of Texas in any suit or proceeding arising out of or
relating to this Agreement.

         (b) To the extent that Continental, Holdings, any Continental Affiliate
or any Holdings Affiliate has or hereafter may acquire any immunity from
jurisdiction of any Delaware court or from any legal process (whether through
service or notice, attachment prior to judgment, attachment in aid of execution,
execution or otherwise) with respect to itself or its property, Continental or
Holdings, as the case may be, hereby irrevocably waives, and agrees to cause the
Continental Affiliates and the Holdings Affiliate, respectively, to waive such
immunity in respect of its obligations with respect to this Agreement.

         (c) The parties hereto agree that an appropriate and convenient,
non-exclusive forum for any disputes between any of the parties hereto or the
Continental Affiliates and the Holdings Group Taxpayers arising out of this
Agreement shall be in any state or federal court in the State of Delaware.

      SECTION 9.15 RIGHT OF OFFSET. If any party hereto shall be in default
hereunder, then the non-defaulting party shall be entitled to set off any amount
owed by the defaulting party to the non-defaulting hereunder against any amounts
owed by the non-defaulting party to the defaulting party under (i) the Amended
and Restated Capacity Purchase Agreement, dated as of April 17, 2002, among
Continental, Holdings, XJT Holdings and ExpressJet Airlines and (ii) the
Promissory Note, dated as of March 31, 2001, made by Continental Express, Inc.
in favor of Continental (the "Note"). It is specifically agreed that (i) for
purposes of the set-off by any non-defaulting party, mutuality shall be deemed
to exist among Continental, Holdings, XJT Holdings and ExpressJet Airlines; (ii)
reciprocity among Continental, Holdings, XJT Holdings and ExpressJet Airlines
exists with respect to their relative rights and obligations in respect of any
such set-off; and (iii) the right of set-off is given as additional security to
induce the parties to enter into the transactions contemplated hereby. Upon
completion of any such set-off, the obligation of the defaulting party to the
non-defaulting party shall be extinguished to the extent of the amount so
set-off. Each party hereto further waives any right to assert as a defense to
any attempted set-off the requirements of liquidation or mutuality. This set-off
provision shall be without prejudice, and in addition, to any right of set-off,
combination of accounts, lien or other right to which any non-defaulting party
is at any time otherwise entitled (either by operation of law, contract or
otherwise).

      SECTION 9.16 CONFIDENTIALITY. Each party shall hold and cause its
Representatives to hold in strict confidence, unless compelled to disclose by
judicial or administrative process or, in the opinion of its counsel, by other
requirements of law, all information (other than any such information relating
solely to the business or affairs of such party) concerning the other parties
hereto furnished it by such other party or its Representatives pursuant to this
Agreement (except to the extent that such information can be shown to have been
(a) previously known by the party to which it was furnished, (b) in the public
domain through no fault of such party, or (c) later

                                      -22-
<PAGE>

lawfully acquired from other sources by the party to which it was furnished),
and each party shall not release or disclose such information to any other
person, except its Representatives who shall be advised of the provisions of
this Section. Each party shall be deemed to have satisfied its obligation to
hold confidential information concerning or supplied by the other party if it
exercises the same care as it takes to preserve confidentiality for its own
similar information.

      SECTION 9.17 AMENDMENT AND MODIFICATION. This Agreement may be amended,
modified or supplemented only by written agreement of the parties.

      IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement
to be executed by a duly authorized officer as of the date first above written.

                                     Continental Airlines, Inc.,
                                     on behalf of itself and each
                                     of the Continental Affiliates

                                     By:
                                        ----------------------------------------
                                     Name:
                                          --------------------------------------
                                     Title:
                                           -------------------------------------

                                     ExpressJet Holdings, Inc.
                                     on behalf of itself and each of
                                     the Holdings Affiliates

                                     By:
                                        ----------------------------------------
                                     Name:
                                          --------------------------------------
                                     Title:
                                           -------------------------------------

                                     ExpressJet Airlines, Inc.

                                     By:
                                        ----------------------------------------
                                     Name:
                                          --------------------------------------
                                     Title:
                                           -------------------------------------

                                      -23-

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