Document:

Amendment to Continental Airlines, Inc. 1998 Stock Incentive Plan

 EXHIBIT 4.25 

Amendment to 

Continental Airlines, Inc. 1998 Stock Incentive Plan, 

Continental Airlines, Inc. 1997 Stock Incentive Plan 

and 

Continental Airlines, Inc. 1994 Incentive Equity Plan 

This Amendment (this “Amendment”) to the Continental Airlines, Inc. 1994 Incentive Equity Plan and the Continental Airlines, Inc. 1997 Stock
Incentive Plan, each as amended and restated as of November 20, 1998 and as further amended by Amendment No. 1 thereto dated as of May 15, 2001 and the Continental Airlines, Inc. 1998 Stock Incentive Plan (as amended and restated
through May 15, 2001 (collectively, the “Plans”), is dated as of March 12, 2004 and has been adopted by the Board of Directors of Continental Airlines, Inc., a Delaware corporation (the “Company”), on March 12,
2004: 
 1. Pursuant to Section X of the Plans, each of the Plans is hereby amended as follows: 

Section IX(c) of each of the Plans is hereby amended in its entirety to read as follows: 

“Change in Control. As used in the Plan (except as otherwise provided in an applicable Option Agreement or Restricted Stock Agreement), the
term “Change in Control” shall mean: 
 (aa) any person (within the meaning of Section 13(d) or 14(d) under the Exchange Act,
including any group (within the meaning of Section 13(d)(3) under the Exchange Act), a “Person”) is or becomes the “beneficial owner” (as such term is defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of securities of the Company (such Person being referred to as an “Acquiring Person”) representing 25% or more of the combined voting power of the Company’s outstanding securities; other than beneficial ownership by
(i) the Company or any subsidiary of the Company, (ii) any employee benefit plan of the Company or any Person organized, appointed or established pursuant to the terms of any such employee benefit plan (unless such plan or Person is a
party to or is utilized in connection with a transaction led by Outside Persons), or (iii) a Person who has a Schedule 13G on file with the Securities and Exchange Commission pursuant to the requirements of Rule 13d-1 under the Exchange Act,
with respect to its holdings of the Company’s voting securities (“Schedule 13G”), so long as (1) such Person is principally engaged in the business of managing investment funds for unaffiliated securities investors and, as part
of such Person’s duties as agent for fully managed accounts, holds or exercises voting or dispositive power over voting securities of the Company, (2) such Person acquires beneficial ownership of voting securities of the Company pursuant
to trading activities undertaken in the ordinary course of such Person’s business and not with the purpose nor the effect, either alone or in concert with any Person, of exercising the power to direct or cause the direction of the management
and policies of the Company or of otherwise changing or influencing the control of the Company, nor in connection with or as a participant in any transaction having such purpose or effect, including any transaction subject to Rule 13d-3(b) of the
Exchange Act and (3) if such Person is a Person included in Rule 13d-1(b)(1)(ii) of the Exchange Act, such Person is not obligated to, and does not, file a Schedule 13D with respect to the securities of the Company (Persons referred to in
clauses (i) through (iii) hereof are hereinafter referred to as “Excluded Persons”); or 
 (bb) individuals who constituted
the Board as of March 12, 2004 after giving effect to changes in the composition of the Board as of that date (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any individual
becoming a director on or after March 12, 2004 whose appointment to fill a vacancy or to fill a new Board position or whose nomination for election by the Company’s shareholders was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board or who was nominated for election by Excluded Persons shall be considered as though such individual were a member of the Incumbent Board; or 

(cc) the Company merges with or consolidates into or engages in a reorganization or similar transaction with another entity pursuant to a transaction in
which the Company is not the “Controlling Corporation”; or 
 (dd) the Company sells or otherwise disposes of all or substantially all
of its assets, other than to Excluded Persons. 
 For purposes of clause (aa) above, if at any time there exist securities of different classes
entitled to vote separately in the election of directors, the calculation of the proportion of the voting power held by a beneficial owner of the Company’s securities shall be determined as follows: first, the proportion of the voting power
represented by securities held by such beneficial owner of each separate class or group of classes voting separately in the election of directors shall be determined, provided that securities representing more than 50% of the voting power of
securities of any such class or group of classes shall be deemed to represent 100% of such voting power; second, such proportion shall then be multiplied by a fraction, the numerator of which is the number of directors which such class or classes is
entitled to elect and the denominator of which is the total number of directors elected to membership on the Board at the time; and third, the product obtained for each such separate class or group of classes shall be added together, which sum shall
be the proportion of the combined voting power of the Company’s outstanding securities held by such beneficial owner. 

 For purposes of clause (aa) above, the term “Outside Persons” means any Persons other than
(I) Persons described in clauses (aa)(i) or (iii) above (as to Persons described in clause (aa)(iii) above, while they are Excluded Persons) and (II) members of senior management of the Company in office immediately prior to the time the
Acquiring Person acquires the beneficial ownership described in clause (aa). 
 For purposes of clause (cc) above, the Company shall be
considered to be the Controlling Corporation in any merger, consolidation, reorganization or similar transaction unless either (1) the shareholders of the Company immediately prior to the consummation of the transaction (the “Old
Shareholders”) would not, immediately after such consummation, beneficially own, directly or indirectly, securities of the resulting entity entitled to elect a majority of the members of the Board of Directors or other governing body of the
resulting entity or (2) those persons who were directors of the Company immediately prior to the consummation of the proposed transaction would not, immediately after such consummation, constitute a majority of the directors of the resulting
entity, provided that (I) there shall be excluded from the determination of the voting power of the Old Shareholders securities in the resulting entity beneficially owned, directly or indirectly, by the other party to the transaction and any
such securities beneficially owned, directly or indirectly, by any Person acting in concert with the other party to the transaction, (II) there shall be excluded from the determination of the voting power of the Old Shareholders securities in the
resulting entity acquired in any such transaction other than as a result of the beneficial ownership of Company securities prior to the transaction and (III) persons who are directors of the resulting entity shall be deemed not to have been
directors of the Company immediately prior to the consummation of the transaction if they were elected as directors of the Company within 90 days prior to the consummation of the transaction. 

The exclusion described in clause (aa)(iii) above shall cease to have any force or effect (and the Person described therein shall cease to be an Excluded
Person) if that Person becomes an “Acquiring Person” within the meaning of the Amended and Restated Rights Agreement dated as of November 15, 2000 between the Company and Mellon Investor Services LLC, as amended from time to time.

 Upon the occurrence of a Change in Control, with respect to each recipient of an Award hereunder, (AA) all Options granted to such recipient
and outstanding at such time shall immediately vest and become exercisable in full (but subject, however, in the case of Incentive Stock Options, to the aggregate fair market value, determined as of the date the Incentive Stock Options are granted,
of the stock with respect to which Incentive Stock Options are exercisable for the first time by such recipient during any calendar year not exceeding $100,000) and, except as required by law, all restrictions on the transfer of shares acquired
pursuant to such Options shall terminate and (BB) all restrictions applicable to such recipient’s Restricted Stock shall be deemed to have been satisfied and such Restricted Stock shall vest in full. 

In addition, except as otherwise provided in the applicable Option Agreement, if a recipient of an Award hereunder becomes entitled to one or more
payments (with a “payment” including, without limitation, the vesting of an Award) pursuant to the terms of the Plan (the “Total Payments”), which are or become subject to the tax imposed by section 4999 of the Code (or any
similar tax that may hereafter be imposed) (the “Excise Tax”), the Company or subsidiary for whom the recipient is then performing services shall pay to the recipient an additional amount (the “Gross-Up Payment”) such that the
net amount retained by the recipient, after reduction for any Excise Tax on the Total Payments and any federal, state and local income or employment tax and Excise Tax on the Gross-Up Payment, shall equal the Total Payments. For purposes of
determining the amount of the Gross-Up Payment, the recipient shall be deemed (aa) to pay federal income taxes at the highest stated rate of federal income taxation (including surtaxes, if any) for the calendar year in which the Gross-Up Payment is
to be made (for 1998, the highest stated rate is 39.6%); and (bb) to pay any applicable state and local income taxes at the highest stated rate of taxation (including surtaxes, if any) for the calendar year in which the Gross-Up Payment is to be
made. Any Gross-Up Payment required hereunder shall be made to the recipient at the same time any Total Payment subject to the Excise Tax is paid or deemed received by the recipient.” 

2. The Plans, as amended by this Amendment, shall apply to all Awards made under the Plans on or after the date hereof and to all outstanding awards made
under the Plans prior to the date hereof, inasmuch as the changes to the Plans effected hereby do not impair the rights of any recipients of Awards. In all other respects, the Plans shall continue in full force and effect with respect to all Awards
made thereunder. 
 3. Capitalized terms used in this Amendment without definition are defined in the Plans and are used in this Amendment with
the same meanings as in the respective Plans. 
 IN WITNESS WHEREOF, the undersigned has executed this Amendment on behalf of the Company as of
March 12, 2004. 
  

			
	CONTINENTAL AIRLINES, INC.
		
	By:	 	 /s/ Jeffery A. Smisek

		 	        Jeffery A. Smisek
		 	        Executive Vice PresidentForm of Outside Director Stock Option Agreement

 EXHIBIT 4.26 

FORM OF 

OUTSIDE DIRECTOR STOCK OPTION AGREEMENT 

(PURSUANT TO THE TERMS OF THE 

CONTINENTAL AIRLINES, INC. 

1998 STOCK INCENTIVE PLAN) 

IF THE OPTIONEE ACCEPTS THIS OPTION,
THE OPTIONEE AGREES TO BE BOUND BY ALL OF THE 

TERMS, PROVISIONS, CONDITIONS AND LIMITATIONS 

OF THE PLAN AND THIS OUTSIDE
DIRECTOR STOCK OPTION AGREEMENT. 
 THE
PLAN IS HEREBY INCORPORATED 
 BY
REFERENCE AS A PART OF THIS OUTSIDE DIRECTOR STOCK OPTION AGREEMENT. 

CAPITALIZED TERMS USED BUT NOT DEFINED
HEREIN SHALL HAVE THE MEANINGS ASCRIBED 

THERETO IN THE PLAN. 

This STOCK OPTION AGREEMENT (this “Option Agreement”) is between Continental Airlines, Inc., a Delaware corporation
(“Company”), and Optionee and is dated as of [            ]. 

1. Grant of Option. The Company hereby grants to Optionee the right, privilege and option as herein set forth (the
“Option”) to purchase up to five thousand [(            )] shares (the “Shares”) of Common Stock, in accordance with the terms of this Option Agreement.
The Shares, when issued to Optionee upon the exercise of the Option, shall be fully paid and nonassessable. The Option is granted pursuant to and to implement in part the Continental Airlines, Inc. 1998 Stock Incentive Plan (as amended and in
effect from time to time, the “Plan”). The Option is not intended to qualify as an Incentive Stock Option. 
 2.
Option Term. Subject to earlier termination as provided herein, the Option shall terminate on [            ]. The period during which the Option is in effect is
referred to as the “Option Period”. 
 3. Option Exercise Price. The exercise price (the “Option
Price”) of the Shares subject to the Option shall be equal to the Market Value per Share on the date hereof. 
 4.
Vesting. The total number of Shares subject to this Option shall vest immediately upon the grant hereof. 
 5.
Method of Exercise. To exercise the Option, Optionee shall deliver an irrevocable written notice to Company (to the attention of the Secretary of the Company) stating the number of Shares with respect to which the Option is being
exercised together with payment for such Shares. Payment shall be made (i) in cash or by check acceptable to Company, (ii) in nonforfeitable, unrestricted shares of Company’s Common Stock owned by Optionee at the time of exercise of
the Option having an aggregate market value (measured by the Market Value per 
  

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Share) at the date of exercise equal to the aggregate exercise price of the Option being exercised or (iii) by a combination of (i) and (ii). In addition, at the request of Optionee,
and to the extent permitted by applicable law and subject to Paragraph 15, the Option may be exercised pursuant to a “cashless exercise” arrangement with any brokerage firm approved by the Administrator or its delegate under which
arrangement such brokerage firm, on behalf of Optionee, shall pay to Company the exercise price of the Options being exercised, and Company, pursuant to an irrevocable notice from Optionee, shall promptly after receipt of the exercise price deliver
the shares being purchased to such firm. 
 6. Termination of Board Service. The Option shall terminate on, and
may not be exercised after the earlier of (i) the date that is one year after termination of Optionee’s service on the Board for any reason and (ii) the expiration of the Option Period. 

7. Reorganization of Company and Subsidiaries. The existence of the Option shall not affect in any way the right or power
of Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in Company’s capital structure or its business, or any merger or consolidation of Company or any issue of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Shares or the rights thereof, or the dissolution or liquidation of Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise. 
 8. Adjustment of Shares. In the event of stock
dividends, spin-offs of assets or other extraordinary dividends, stock splits, combinations of shares, recapitalizations, mergers, consolidations, reorganizations, liquidations, issuances of rights or warrants and similar transactions or events
involving Company, appropriate adjustments shall be made to the terms and provisions of this Option, in the same manner as is provided for adjustments to the terms and provisions of the warrants issued by Company to Air Canada and to Air Partners,
L.P. under the Warrant Agreement dated as of April 27, 1993. 
 9. No Rights in Shares. Optionee shall have
no rights as a stockholder in respect of Shares until such Optionee becomes the holder of record of such Shares. 
 10.
Certain Restrictions. By exercising the Option, Optionee agrees that if at the time of such exercise the sale of Shares issued hereunder is not covered by an effective registration statement filed under the Securities Act of 1933
(“Act”), Optionee will acquire the Shares for Optionee’s own account and without a view to resale or distribution in violation of the Act or any other securities law, and upon any such acquisition Optionee will enter into such written
representations, warranties and agreements as Company may reasonably request in order to comply with the Act or any other securities law or with this Option Agreement. Optionee agrees that Company shall not be obligated to take any affirmative
action in order to cause the issuance or transfer of Shares hereunder to comply with any law, rule or regulation that applies to the Shares subject to the Option. 

 

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 11. Shares Reserved. Company shall at all times during the Option Period
reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of this Option. 
 12.
Nontransferability of Option. The Option granted pursuant to this Option Agreement is not transferable other than by will, the laws of descent and distribution or by qualified domestic relations order. The Option will be exercisable
during Optionee’s lifetime only by Optionee or by Optionee’s guardian or legal representative. No right or benefit hereunder shall in any manner be liable for or subject to any debts, contracts, liabilities, or torts of Optionee.

 13. Amendment and Termination; Electronic Delivery. No amendment or termination of the Option shall be made by
the Board or the Administrator at any time without the written consent of Optionee. No amendment or termination of the Plan will adversely affect the rights, privileges and option of Optionee under the Option without the written consent of Optionee.
Optionee hereby consents and agrees to electronic delivery of any Plan documents, proxy materials, annual reports and other related documents. 

14. No Guarantee of Board Service. The Option shall not confer upon Optionee any right with respect to continuance of
service on the Board, nor shall it interfere in any way with any right to terminate Optionee’s Board service at any time. 

15. Withholding of Taxes. Company shall have the right to (i) make deductions from the number of Shares otherwise
deliverable upon exercise of the Option in an amount sufficient to satisfy withholding of any federal, state or local taxes required by law, or (ii) take such other action as may be necessary or appropriate to satisfy any such tax withholding
obligations. 
 16. No Guarantee of Tax Consequences. Neither Company nor any subsidiary nor the Administrator
makes any commitment or guarantee that any federal or state tax treatment will apply or be available to any person eligible for benefits under the Option. 

17. Severability. In the event that any provision of the Option shall be held illegal, invalid, or unenforceable for any
reason, such provision shall be fully severable, but shall not affect the remaining provisions of the Option, and the Option shall be construed and enforced as if the illegal, invalid, or unenforceable provision had never been included herein.

 18. Governing Law. The Option shall be construed in accordance with the laws of the State of Delaware to the
extent federal law does not supersede and preempt Delaware law. 
  

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