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 XJT Holdings.

     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 INTERCOMPANY NOTE refers to that certain promissory note dated March
31, 2001, by Continental Express, Inc. (currently known as XJT Holdings, Inc.)
in favor of Continental in the original principal amount of $552,312,000.00.

     1.33 IPO means the Initial Public Offering.

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

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

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

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

     1.38 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.

     1.39 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.

     1.40 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.

     1.41 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.

     1.42 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.

     1.43 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.

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

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

     1.45 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.

     1.46 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.

     1.47 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.

     1.48 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.

     1.49 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.

     1.50 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.

     1.51 TURBO PROGRAM means the Continental Airlines, Inc. Executive Bonus
Performance Award Program adopted under the Incentive Plan 2000, as amended from
time to time.

     1.52 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.

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

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     1.54 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.

     1.55 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.

         (c) CONTINENTAL'S GENERAL OBLIGATIONS AS PLAN SPONSOR. Except as
otherwise provided in the governing documents for each Continental Plan,
Continental shall

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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 January 1, 2003, 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. Holdings may, at
its election, reimburse Continental for such cost by increasing the amount
payable by Holdings to Continental under the InterCompany Note.

                                   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. In the case of any delinquent payment of such
reimbursement amount, interest will be charged in the amount and in accordance
with the interest crediting provisions then prevailing pursuant to the
InterCompany Note.

                                      -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 the IPO Date.

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

                                      -14-
<PAGE>

         (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 be a "parent
corporation" of Holdings within the meaning of section 424(e) of the Code.
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.

         (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

                                      -15-
<PAGE>

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 July 1, 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). All or any portion of the payments and/or
awards owed by Holdings to Holdings Employees under the Continental Perfect
Attendance Program shall, at the election of Holdings, be paid by Continental
and added to the amount payable by Holdings under the InterCompany Note.
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 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.

                                      -16-
<PAGE>

     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 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 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

                                      -17-
<PAGE>

the IPO Date, Holdings shall use reasonable best efforts to cause all UATP cards
issued 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 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 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 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.

                                      -18-
<PAGE>

     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. Holdings may, at
its election, reimburse Continental for such costs by increasing the amount
payable by Holdings to Continental under the InterCompany Note.

         (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.

                                       AND

                            EXPRESSJET HOLDINGS, INC.

<PAGE>
                                  TAX AGREEMENT

      TAX AGREEMENT (this "Agreement"), dated as of _______ __, 2002, by and
between Continental Airlines, Inc., a Delaware corporation ("Continental"),
and ExpressJet Holdings, Inc., a Delaware corporation ("Holdings").

                                    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 ExpressJet Airlines, Inc. (formerly known as
Continental Express, Inc.) entered into a Tax Agreement dated _____________ (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 Consolidated Return, and (ii) any event pursuant
to which neither Holdings nor any Holdings Affiliate continues to be included in
a Combined Return.

                                      -2-
<PAGE>
      "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 ExpressJet Airlines, Inc.) 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.

      "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.

                                      -3-
<PAGE>
      "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 ExpressJet Airlines,  Inc. to  New ExpressJet Airlines,  Inc. in exchange
for common stock and Series A Preferred Stock of New ExpressJet Airlines,
Inc. pursuant to the Asset Purchase and Sale Agreement, dated as of
[__________], 2002, by and between ExpressJet Airlines, Inc. and New
ExpressJet Airlines, Inc. and the sale of such Series A Preferred Stock
pursuant to the Series A Preferred Stock Purchase Agreement, dated as of
[_________], 2002, by and between ExpressJet Airlines, Inc. and [____________].

       "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.

      "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.

                                      -4-
<PAGE>
      "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, 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,

                                      -5-
<PAGE>
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).

                                   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 Consoli-

                                      -6-
<PAGE>
dated 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 ExpressJet Airlines, Inc. to New ExpressJet Airlines,
Inc. in connection with the Internal Restructuring as a taxable sale of such
assets to New ExpressJet Airlines, Inc. 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 New ExpressJet Airlines, Inc. 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 posi-

                                      -8-
<PAGE>
tion 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.

                                   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;

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

                                      -9-
<PAGE>
      (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 to Sections 4.5(a) or (b) with respect to the Taxes
covered by such Tax Return, Holdings shall

                                      -10-
<PAGE>
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

                  (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.

                                      -11-
<PAGE>
            (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.

            (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.

                                      -12-
<PAGE>
            (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 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

                                      -13-
<PAGE>
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) 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.

                                      -14-
<PAGE>
            (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.

      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

                                      -15-
<PAGE>
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 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 Hold-

                                      -16-
<PAGE>
ings 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.

                                   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 Hold-

                                      -17-
<PAGE>
ings 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 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

                                      -18-
<PAGE>
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:

      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

                                      -19-
<PAGE>
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.

      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 NEW EXPRESSJET AIRLINES, INC. 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 New ExpressJet Airlines, Inc., and either
Holdings or New ExpressJet Airlines, Inc. 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

                                      -20-
<PAGE>
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.

      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 de-

                                      -21-
<PAGE>
faulting party under (i) the Amended and Restated Capacity Purchase Agreement,
dated as of April __, 2002, among Continental, Holdings, and New ExpressJet
Airlines, Inc. 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,
ExpressJet Airlines, Inc. and New ExpressJet Airlines, Inc.; (ii) reciprocity
among Continental, Holdings, ExpressJet Airlines, Inc. and New ExpressJet
Airlines, Inc. 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 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.

                                      -22-
<PAGE>
      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:______________________________

                                          New ExpressJet Airlines, Inc.

                                          By:_________________________________

                                          Name:_______________________________

                                          Title:______________________________

                                      -23-

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