Document:

Form of Employee Stock Option Agreement

 EXHIBIT 4.27 

FORM OF EMPLOYEE STOCK OPTION AGREEMENT 

(PURSUANT TO THE TERMS OF THE 

CONTINENTAL AIRLINES, INC. 

1998 STOCK INCENTIVE PLAN) 

(THE “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 STOCK OPTION AGREEMENT. 

IN ADDITION TO ANY ELECTRONIC CONFIRMATION
AND/OR ACCEPTANCE PROCEDURES 
 ESTABLISHED
FOR THIS STOCK OPTION AGREEMENT, ANY EXERCISE OF THIS OPTION 

SHALL EVIDENCE OPTIONEE’S ACCEPTANCE OF
THE TERMS, PROVISIONS, CONDITIONS 
 AND
LIMITATIONS OF THE PLAN AND THIS STOCK OPTION AGREEMENT. 

THE PLAN IS HEREBY INCORPORATED BY
REFERENCE 
 INTO THIS STOCK OPTION
AGREEMENT. 
 CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN 
 SHALL HAVE
THE MEANINGS ASCRIBED THERETO IN THE PLAN. 

1. Grant of Option. The Optionee has been granted an Option pursuant to the terms of this Stock Option Agreement (and under
and subject to the terms of the Plan) to purchase shares of Common Stock of the Company. The number of shares of Common Stock (“Shares”) subject to this Stock Option Agreement and the date of grant (“Grant Date”) are as set forth
in the records of the Company and as communicated to the Optionee by the Company directly or through the systems (which may include online systems) of a third party administrator engaged by the Company for such purpose and available for review by
Optionee in connection with this Stock Option Agreement. In the event of any conflict between any communications to the Optionee by the Company, the records of any third party administrator, and the action of the Administrator awarding the Option,
the action of the Administrator shall control. The Shares, when issued to the Optionee upon the exercise of the Option, shall be fully paid and nonassessable. The Option is not intended to qualify as an “incentive stock option” within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). 
 2. Option
Term. Subject to earlier termination as provided herein, the Option shall terminate and expire on the fifth anniversary of the Grant Date. The period during which the Option is in effect is referred to as the “Option Period.”

 3. Option Price. The grant price or exercise price (the “Option Price”) of the Shares subject to the
Option shall be equal to the Market Value per Share on the Grant Date. 
  

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 4. Vesting. Subject to the following provisions of this Paragraph 4, the total
number of Shares subject to this Option shall vest in twenty-five percent (25%) increments on each of the first, second, third and fourth anniversaries of the Grant Date. The vested Shares that may be acquired under the Option may be purchased
at any time after they become vested, in whole or in part, during the Option Period. In addition, the total number of Shares subject to this Option shall vest and become exercisable upon the occurrence of one of the events described in Paragraph
6(c) or 6(d). 
 5. Method of Exercise and Payment. The Option or a portion thereof may be exercised by delivery
of an irrevocable notice to the Company (or, if applicable, to a third party administrator engaged by the Company to perform services for the Company with respect to the Plan) 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 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 10, 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. Optionee acknowledges and agrees that the Company may provide personal information about Optionee and information concerning the Option or any other Award under the Plan to any third party
engaged by the Company to provide administrative or brokerage services relating to the Plan. 
 6. Termination of
Employment; Change in Control. Voluntary or involuntary termination of employment, retirement, death or Disability of Optionee, or occurrence of a Change in Control, shall affect Optionee’s rights under the Option as follows:

 (a) Involuntary Termination for Gross Misconduct. The Option shall terminate immediately and shall not
be exercisable if Optionee’s employment (defined below) is terminated involuntarily for gross misconduct (defined below). 

(b) Other Involuntary Termination or Voluntary Termination. If Optionee’s employment is terminated
involuntarily other than for gross misconduct or if Optionee voluntarily terminates employment, then immediately (i) the Option shall terminate as to Shares subject thereto to the extent not yet then vested pursuant to Paragraph 4 or pursuant
to Paragraph 6(c) below, and (ii) the Option shall terminate as to all remaining Shares subject thereto to the extent not exercised pursuant to Paragraph 5 within 30 days after such termination of employment or the end of the Option Period,
whichever is shorter. 
  

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 (c) Change in Control. If a Change in Control shall occur, then the
Option shall vest immediately and become exercisable in full for the remainder of the Option Period. 
 (d)
Retirement, Death or Disability. If Optionee’s employment is terminated by retirement, death or Disability, then immediately the Option shall become exercisable in full, whether or not otherwise exercisable, for a term of one year
thereafter or through the end of the Option Period, whichever is shorter, by Optionee or, in the case of death, by the person or persons to whom Optionee’s rights under the Option shall pass by will or by the applicable laws of descent and
distribution, or in the case of Disability, by Optionee’s legal representative. However, in no event may any Option be exercised by anyone after the earlier of (y) the expiration of the Option Period or (z) one year after
Optionee’s retirement, death or Disability (described above). 
 (e) Definitions. For purposes of the
Option, “employment” means employment by Company or a subsidiary (as the term “subsidiary” is defined in the Plan). In this regard, neither the transfer of an Optionee from employment by Company to employment by a subsidiary nor
the transfer of an Optionee from employment by a subsidiary to employment by Company shall be deemed to be a termination of employment of the Optionee. Moreover, the employment of an Optionee shall not be deemed to have been terminated because of
absence from active employment on account of temporary illness or during authorized vacation or during temporary leaves of absence from active employment granted by Company or a subsidiary for reasons of professional advancement, education, health,
or government service, or during military leave for any period if the Optionee returns to active employment within 90 days after the termination of military leave, or during any period required to be treated as a leave of absence by virtue of any
valid law or agreement. “Gross misconduct” means dishonesty, willful or repeated disobedience, violation of the Company’s Principles of Conduct, or other action or inaction that might reasonably be expected to injure Company or any of
its subsidiaries or its or their business interests or reputation. The Administrator’s determination in good faith regarding whether a termination of employment, gross misconduct or Disability has occurred shall be conclusive and determinative.

 7. 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. 
 8. 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 Stock Option Agreement. 
  

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 9. Nontransferability of Option. The Option granted pursuant to this Stock
Option Agreement is not transferable other than by will, the laws of descent and distribution or by a 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. 

10. Withholding of Taxes. Company shall have the right to (i) make deductions from any settlement or exercise of an
Option granted under the Plan, including the delivery of shares, or require shares or cash or both be withheld from any Option, in each case in an amount sufficient to satisfy withholding of any taxes required by law or (ii) take any other
action as may be necessary or appropriate to satisfy any such tax withholding obligations. 
 11. No Guarantee of Tax
Consequences. Neither the Company nor any subsidiary nor the Administrator makes any commitment or guarantee that any federal, state, local or foreign tax treatment will apply or be available to any person eligible for benefits under the
Option. 
 12. 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. 
 13. 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. 
 14. Miscellaneous Provisions.

 (a) Not a Contract of Employment; No Acquired Rights. The adoption and maintenance of the Plan shall not be deemed to
be a contract of employment between the Company or any of its subsidiaries and any person. Receipt of an Award under the Plan at any given time shall not be deemed to create the right to receive in the future an Award under the Plan, or any other
incentive awards granted to an employee of the Company or any of its subsidiaries, and shall not constitute an acquired labor right for purposes of any foreign law. The Plan shall not afford any recipient of an Award any additional right to
severance payments or other termination awards or compensation under any foreign law as a result of the termination of such recipient’s employment for any reason whatsoever. 

(b) Not a Part of Salary. The grant of an Award under the Plan is not intended to be a part of the salary of the recipient.

 (c) Foreign Indemnity. Optionee agrees to indemnify Company for the Optionee’s portion of any social insurance
obligations or taxes arising under any foreign law with respect to the grant or exercise of this Option or the sale or other disposition of the Shares acquired hereunder. 
  

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 (d) Conflicts With Any Employment Agreement. If Optionee has an employment agreement
with Company or any of its subsidiaries which contains different or additional provisions relating to vesting of options, or otherwise conflicts with the terms of this Stock Option Agreement, the provisions of the employment agreement shall govern.

 (e) Electronic Delivery, Signatures and Acceptance. Optionee consents and agrees to electronic delivery of any Plan
documents, proxy materials, annual reports and other related documents. Optionee consents to electronic delivery, review, confirmation and acceptance procedures. Optionee agrees that his or her electronic signature is the same as, and shall have the
same force and effect as, his or her manual signature. Optionee consents and agrees that any such electronic procedures may be effected by a third party engaged by the Company to provide administrative services related to the Plan, including any
program adopted under the Plan. 
  

 5Continental Airlines, Inc. 1997 Stock Incentive Plan

 EXHIBIT 4.28 

CONTINENTAL AIRLINES, INC. 

1997 STOCK INCENTIVE PLAN 

I. PURPOSE 
 The
purpose of the Continental Airlines, Inc. 1997 Stock Incentive Plan is to provide a means through which Continental Airlines, Inc. and its subsidiaries may attract able persons to serve as directors, or to enter the employ of the Company (as defined
below) or its subsidiaries, and to provide a means whereby those individuals upon whom the responsibilities of the successful administration and management of the Company and its subsidiaries rest, and whose present and potential contributions to
the welfare of the Company and its subsidiaries are of importance, can acquire and maintain stock ownership, thereby strengthening their concern for the welfare of the Company and its subsidiaries. A further purpose of the Plan is to provide such
individuals with additional incentive and reward opportunities designed to enhance the profitable growth of the Company and its subsidiaries. Accordingly, the Plan provides that the Company may grant to certain employees or directors shares of
Restricted Stock, or the option to purchase shares of Common Stock, as hereinafter set forth. Options granted under the Plan may be either Incentive Stock Options or options that do not constitute Incentive Stock Options. 

II. DEFINITIONS 

The following definitions (including any plural thereof) shall be applicable throughout the Plan unless specifically modified by any
Section: 
 (a) “Administrator” means (i) in the context of Awards made to, or the administration (or
interpretation of any provision) of the Plan as it relates to, any person who is subject to Section 16 of the Exchange Act (including any successor section to the same or similar effect, “Section 16”), the Committee, or (ii) in
the context of Awards made to, or the administration (or interpretation of any provision) of the Plan as it relates to, any person who is not subject to Section 16, the Chief Executive Officer of the Company (if the Chief Executive Officer is a
Director of the Company). 
 (b) “Award” means an Option or grant of Restricted Stock. 

(c) “Board” means the Board of Directors of the Company. 

(d) “Code” means the Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code shall be
deemed to include any amendments or successor provisions to such section and any regulations promulgated under such section. 

 (e) “Committee” means a committee of the Board comprised solely of two or more
outside Directors (within the meaning of the term “outside directors” as used in section 162(m) of the Code and applicable interpretive authority thereunder and within the meaning of “Non-Employee Director” as defined in Rule
16b-3). Such committee shall be the Human Resources Committee of the Board unless and until the Board designates another committee of the Board to serve as Administrator as described in the Plan. 

(f) “Common Stock” means the Class B common stock, $.01 par value, of the Company, or any security into which such Common Stock
may be changed by reason of any transaction or event of the type described in Section IX(b). 
 (g) “Company” shall
mean Continental Airlines, Inc., a Delaware corporation, or any successor thereto. 
 (h) “Director” means an
individual elected to the Board by the stockholders of the Company or by the Board under applicable corporate law who is serving on the Board on the date the Plan is adopted by the Board or is elected to the Board after such date. 

(i) “Disability” means any complete and permanent disability as defined in section 22(e)(3) of the Code. 

(j) “employee” means any person (which may include a Director) in an employment relationship with the Company or any parent or
subsidiary corporation (as defined in section 424 of the Code). 
 (k) “Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder. 
 (l) “Incentive Stock Option” means
an incentive stock option within the meaning of section 422 of the Code. 
 (m) “ Market Value per Share” means, as of
any specified date, the closing sale price of the Common Stock on that date (or, if there are no sales on that date, the last preceding date on which there was a sale) in the principal securities market in which the Common Stock is then traded. If
the Common Stock is not publicly traded at the time a determination of “Market Value per Share” is required to be made hereunder, the determination of such amount shall be made by the Administrator in such manner as it deems appropriate.

 (n) “Option” means an option to purchase Common Stock granted under Section VII of the Plan and includes both
Incentive Stock Options to purchase Common Stock and Options that do not constitute Incentive Stock Options to purchase Common Stock. 

(o) “Option Agreement” means a written agreement between the Company and an Optionee with respect to, and evidencing the grant
of, an Option. 
 (p) “Optionee” means an employee or Director who has been granted an Option. 

(q) “Plan” means the Continental Airlines, Inc. 1997 Stock Incentive Plan, as amended from time to time. 

 (r) “Restricted Stock” means shares of Common Stock granted pursuant to Section
VIII of the Plan as to which neither the substantial risk of forfeiture nor the restriction on transfers referred to therein has expired. 

(s) “Restricted Stock Agreement” means a written agreement between the Company and a recipient of Restricted Stock with respect
to, and evidencing the grant of, Restricted Stock. 
 (t) “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as
such rule may be amended from time to time, and any successor rule, regulation or statute fulfilling the same or similar function. 

(u) “subsidiary” means any entity (other than the Company) with respect to which the Company, directly or indirectly through
one or more other entities, owns equity interests possessing 50 percent or more of the total combined voting power of all equity interests of such entity (excluding voting power that arises only upon the occurrence of one or more specified events).

 III. EFFECTIVE DATE AND DURATION OF THE PLAN 

The Plan shall become effective upon the date of its adoption by the Board; provided, that the Plan is approved by the stockholders of
the Company within twelve months thereafter. Notwithstanding any provision of the Plan or of any Option Agreement or Restricted Stock Agreement, no Option shall be exercisable, and no shares of Restricted Stock shall vest, prior to such stockholder
approval. No further Options or Restricted Stock may be granted under the Plan after ten years from the date the Plan is adopted by the Board. The Plan shall remain in effect until all Options granted under the Plan have been satisfied or expired,
and all shares of Restricted Stock granted under the Plan have vested or been forfeited. 
 IV. ADMINISTRATION 

(a) Administrator. The Plan shall be administered by the Administrator, so that Awards made to, and the administration (or interpretation
of any provision) of the Plan as it relates to, any person who is subject to Section 16, shall be made or effected by the Committee, and Awards made to, and the administration (or interpretation of any provision) of the Plan as it relates to,
any person who is not subject to Section 16, shall be made or effected by the Chief Executive Officer of the Company (if the Chief Executive Officer is a Director of the Company). 

(b) Powers. Subject to the express provisions of the Plan, the Administrator shall have authority, in its discretion, to determine which
employees or Directors shall receive an Award, the time or times when such Award shall be granted, whether an Incentive Stock Option or nonqualified Option shall be granted, and the number of shares to be subject to each Award. In making such
determinations, the Administrator shall take into account the nature of the services rendered by the respective employees or 

 
Directors, their present and potential contribution to the Company’s success and such other factors as the Administrator in its discretion shall deem relevant. Subject to the express
provisions of the Plan, the Administrator shall also have the power to construe the Plan and the respective agreements executed hereunder, to prescribe rules and regulations relating to the Plan, and to determine the terms, restrictions and
provisions of the Option Agreements and the Restricted Stock Agreements, including such terms, restrictions and provisions as shall be requisite in the judgment of the Administrator to cause designated Options to qualify as Incentive Stock Options,
and to make all other determinations necessary or advisable for administering the Plan. The Administrator may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any agreement relating to an Award in the manner
and to the extent it shall deem expedient to carry it into effect. The determination of the Administrator on the matters referred to in this Section IV shall be conclusive; provided, however, that in the event of any conflict in any such
determination as between the Committee and the Chief Executive Officer of the Company, each acting in capacity as Administrator of the Plan, the determination of the Committee shall be conclusive. 

V. SHARES SUBJECT TO THE PLAN; GRANT OF OPTIONS; 

GRANT OF RESTRICTED STOCK 

(a) Shares Subject to the Plan. Subject to adjustment as provided in Section IX(b), the aggregate number of shares of Common Stock that
may be issued under the Plan shall not exceed 2,000,000 shares. Shares shall be deemed to have been issued under the Plan only to the extent actually issued and delivered pursuant to an Option or a grant of Restricted Stock. To the extent that an
Option or a grant of Restricted Stock lapses or the rights of the recipient with respect thereto terminate, any shares of Common Stock then subject to such Option or grant of Restricted Stock shall again be available for grant under the Plan.
Notwithstanding any provision in the Plan to the contrary, the maximum number of shares of Common Stock that (i) may be subject to Options granted to any one individual during any calendar year may not exceed 200,000 shares, and (ii) may
be granted as Restricted Stock may not exceed 100,000 shares (in each case subject to adjustment as provided in Section IX(b)). The limitation set forth in clause (i) of the preceding sentence shall be applied in a manner which will permit
compensation generated in connection with Options awarded under the Plan by the Committee to constitute “performance based” compensation for purposes of section 162(m) of the Code, including, without limitation, counting against such
maximum number of shares, to the extent required under section 162(m) of the Code and applicable interpretive authority thereunder, any shares subject to Options that are canceled or repriced. 

(b) Grant of Options. The Administrator may from time to time grant Options to one or more employees or Directors determined by it to be
eligible for participation in the Plan in accordance with the terms of this Plan. 

 (c) Grant of Restricted Stock. The Administrator may from time to time grant Restricted
Stock to one or more employees or Directors determined by it to be eligible for participation in the Plan in accordance with the terms of this Plan. 

(d) Stock Offered. Subject to the limitations set forth in Section V(a) above, the stock to be offered pursuant to an Award may be
authorized but unissued Common Stock or Common Stock previously issued and outstanding and reacquired by the Company. Any of such shares which remain unissued and which are not subject to outstanding Awards at the termination of the Plan shall cease
to be subject to the Plan but, until termination of the Plan, the Company shall at all times make available a sufficient number of shares to meet the requirements of the Plan. 

VI. ELIGIBILITY 

Awards may be granted only to persons who, at the time of grant, are employees or Directors. An Award may be granted on more than one
occasion to the same person and, subject to the limitations set forth in the Plan, Awards consisting of Options may include an Incentive Stock Option or an Option that is not an Incentive Stock Option or any combination thereof, and Awards may
consist of any combination of Options and Restricted Stock. 
 VII. STOCK OPTIONS 

(a) Option Period. The term of each Option shall be as specified by the Administrator at the date of grant. 

(b) Limitations on Exercise of Option. An Option shall be exercisable in whole or in such installments and at such times as determined by
the Administrator at the date of grant. 
 (c) Special Limitations on Incentive Stock Options. An Incentive Stock Option may be
granted only to an individual who is an employee at the time the Option is granted. To the extent that the aggregate Market Value per Share (determined at the time the respective Incentive Stock Option is granted) of Common Stock with respect to
which Incentive Stock Options granted after 1986 are exercisable for the first time by an individual during any calendar year under all incentive stock option plans of the Company and its parent and subsidiary corporations exceeds $100,000, such
Incentive Stock Options shall be treated as Options which do not constitute Incentive Stock Options. The Administrator shall determine, in accordance with applicable provisions of the Code, Treasury Regulations and other administrative
pronouncements, which of an Optionee’s Incentive Stock Options will not constitute Incentive Stock Options because of such limitation and shall notify the Optionee of such determination as soon as practicable after such determination. No
Incentive Stock Option shall be granted to an individual if, at the time the Option is granted, such individual owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of its parent or
subsidiary corporation, within the meaning of section 422(b)(6) of the Code, unless (i) at the time such Option is granted the option price is at least 110% of the Market Value per Share of the Common Stock subject to the Option and
(ii) such Option by its terms is 

 
not exercisable after the expiration of five years from the date of grant. An Incentive Stock Option shall not be transferable otherwise than by will or the laws of descent and distribution, and
shall be exercisable during the Optionee’s lifetime only by such Optionee or the Optionee’s guardian or legal representative. 

(d) Option Agreement. Each Option shall be evidenced by an Option Agreement in such form and containing such provisions not inconsistent
with the provisions of the Plan as the Administrator from time to time shall approve, including, without limitation, provisions to qualify an Incentive Stock Option under section 422 of the Code. Each Option Agreement shall specify the effect of
termination of (i) employment, or (ii) membership on the Board, as applicable, on the exercisability of the Option. An Option Agreement may provide for the payment of the option price, in whole or in part, by delivery of a number of shares
of Common Stock (plus cash if necessary) having a Market Value per Share equal to such option price. Moreover, an Option Agreement may provide for a “cashless exercise” of the Option by establishing procedures satisfactory to the
Administrator with respect thereto. The terms and conditions of the respective Option Agreements need not be identical. 
 (e)
Option Price and Payment. The price at which a share of Common Stock may be purchased upon exercise of an Option shall be set forth in the Option Agreement and shall be determined by the Administrator but, subject to adjustment as provided in
Section IX(b), such purchase price shall not be less than the Market Value per Share of a share of Common Stock on the date such Option is granted. The Option or portion thereof may be exercised by delivery of an irrevocable notice of exercise to
the Company, as specified by the Administrator. The purchase price of the Option or portion thereof shall be paid in full in the manner specified by the Administrator. Separate stock certificates shall be issued by the Company for those shares
acquired pursuant to the exercise of an Incentive Stock Option and for those shares acquired pursuant to the exercise of any Option that does not constitute an Incentive Stock Option. 

(f) Stockholder Rights and Privileges. The Optionee shall be entitled to all the privileges and rights of a stockholder only with respect
to such shares of Common Stock as have been purchased under the Option and for which certificates representing such Common Stock have been registered in the Optionee’s name. 

(g) Options in Substitution for Stock Options Granted by Other Corporations. Options may be granted under the Plan from time to time in
substitution for stock options held by individuals employed by corporations who become employees as a result of a merger or consolidation or other business combination of the employing corporation with the Company or any subsidiary. 

 VIII. RESTRICTED STOCK 

(a) Ownership of Restricted Stock. Each grant of Restricted Stock will constitute an immediate transfer of record and beneficial
ownership of the shares of Restricted Stock to the recipient of the grant in consideration of the performance of services by such recipient (or other consideration determined by the Administrator), entitling the recipient to all voting and other
ownership rights, but subject to the restrictions hereinafter referred to or contained in the related Restricted Stock Agreement. Each grant may, in the discretion of the Administrator, limit the recipient’s dividend rights during the period in
which the shares of Restricted Stock are subject to a substantial risk of forfeiture and restrictions on transfer. 
 (b)
Substantial Risk of Forfeiture and Restrictions on Transfer. Each grant of Restricted Stock will provide that (i) the shares covered thereby will be subject, for a period or periods determined by the Administrator at the date of grant, to one
or more restrictions, including, without limitation, a restriction that constitutes a “substantial risk of forfeiture” within the meaning of section 83 of the Code and applicable interpretive authority thereunder, and (ii) during such
period or periods during which such restrictions are to continue, the transferability of the Restricted Stock subject to such restrictions will be prohibited or restricted in a manner and to the extent prescribed by the Administrator at the date of
grant. 
 (c) Restricted Stock Held in Trust. Shares of Common Stock awarded pursuant to a grant of Restricted Stock will be
held in trust by the Company for the benefit of the recipient until such time as the applicable restriction on transfer thereof shall have expired or otherwise lapsed, at which time certificates representing such Common Stock will be delivered to
the recipient. 
 (d) Restricted Stock Agreement; Consideration. Each grant of Restricted Stock shall be evidenced by a
Restricted Stock Agreement in such form and containing such provisions not inconsistent with the provisions of the Plan as the Administrator from time to time shall approve. The terms and conditions of the respective Restricted Stock Agreements need
not be identical. Each grant of Restricted Stock may be made without additional consideration or in consideration of a payment by the recipient that is less than the Market Value per Share on the date of grant, as determined by the Administrator.

 IX. RECAPITALIZATION, REORGANIZATION AND CHANGE IN CONTROL 

(a) No Effect on Right or Power. The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or
power of the Board or the stockholders of the Company or any subsidiary to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s or any subsidiary’s capital structure or its business, any
merger or consolidation of the Company or any subsidiary, any issue of debt or equity securities ahead of or affecting Common Stock or the rights thereof, the dissolution or liquidation of the Company or any subsidiary or any sale, lease, exchange
or other disposition of all or any part of its assets or business or any other corporate act or proceeding. 

 (b) Changes in Common Stock. The provisions of Section V(a) imposing limits on the numbers
of shares of Common Stock covered by Awards granted under the Plan, as well as the number or type of shares or other property subject to outstanding Options and Restricted Stock grants and the applicable option prices per share, shall be adjusted
appropriately by the Committee 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. 
 (c) Change in Control. As used in the Plan, 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 the greater of (x) 25% of the combined voting power of the Company’s outstanding securities and
(y) the proportion of the combined voting power of the Company’s outstanding securities represented by securities of the Company beneficially owned, directly or indirectly, by Air Partners, L.P. (“Air Partners”) and any Person
controlling, controlled by or under common control with Air Partners at the time of reference (excluding, for purposes of determining such proportion of the combined voting power under this clause (y), any securities beneficially owned by Air
Partners (and any Person controlling, controlled by or under common control with Air Partners) which are deemed beneficially owned by such Acquiring Person); 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) Air Partners or any Person (other than any air carrier that is not the Company and that is currently controlled by or under common control with Air Partners, or a holding company or subsidiary of any such air
carrier) controlling, controlled by or under common control with Air Partners (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 February 28, 1997 (the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board, provided that any individual becoming a director subsequent to February 28, 1997 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 Persons described in clauses (aa)(i) or (iii) above (as to Persons described in clause (aa)(iii) above, while they are Excluded Persons) or 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 

 
(unless such other party or such Person is Air Partners, if Air Partners has not ceased to be an Excluded Person), (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 Persons described therein shall cease
to be Excluded Persons) if (A) Air Partners ceases to be, for a period of thirty consecutive calendar days, the beneficial owner, directly or indirectly, of securities of the Company representing at least 25% of the combined voting power of the
Company’s outstanding securities or (B) there occurs a “change in the ownership or effective control” (within the meaning of section 280G of the Code) of Air Partners. 

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 become exercisable in full, whether or not otherwise exercisable, for a period of thirty (30) calendar days following the occurrence of the Change in Control (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, 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 1996, 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. 

 X. AMENDMENT AND TERMINATION OF THE PLAN 

The Board in its discretion may terminate the Plan at any time with respect to any shares of Common Stock for which Awards have not
theretofore been granted. The Board shall have the right to alter or amend the Plan or any part thereof from time to time; provided that no change in any Award theretofore granted may be made which would impair the rights of the recipient thereof
without the consent of such recipient, and provided further that the Board may not, without approval of the stockholders of the Company, amend the Plan to (a) increase the maximum aggregate number of shares that may be issued under the Plan or
(b) change the class of individuals eligible to receive Awards under the Plan. 
 XI. MISCELLANEOUS 

(a) No Right to an Option or Restricted Stock. Neither the adoption of the Plan nor any action of the Board or the Administrator shall be
deemed to give an employee or Director any right to be granted an Award or any other rights hereunder except as may be evidenced by an Option Agreement or Restricted Stock Agreement duly executed and delivered on behalf of the Company, and then only
to the extent and on the terms and conditions expressly set forth therein. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of funds or assets to assure the
performance of its obligations under any Award. 
 (b) No Employment or Membership Rights Conferred. Nothing contained in the
Plan shall (i) confer upon any employee any right with respect to continuation of employment with the Company or any subsidiary or (ii) interfere in any way with the right of the Company or any subsidiary to terminate his or her employment
at any time. Nothing contained in the Plan shall confer upon any Director any right with respect to continuation of membership on the Board. 

(c) Other Laws; Withholding. The Company shall not be obligated to issue any Common Stock pursuant to any Award granted under the Plan at
any time when the shares covered thereby have not been registered under the Securities Act of 1933, as amended, and such other state and federal laws, rules and regulations as the Company or the Administrator deems applicable and, in the opinion of
legal counsel to the Company, there is no exemption from the registration requirements of such laws, rules and regulations available for the issuance and sale of such shares. No fractional shares of Common Stock shall be delivered, nor shall any
cash in lieu of fractional shares by paid. The Company shall have the right to (i) make deductions from any settlement or exercise of an Award made under the Plan, including the delivery of shares, or require shares or cash or both be withheld
from any Award, in each case 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. The Administrator may determine the manner in which such tax withholding may be satisfied, and may
permit shares of Common Stock (together with cash, as appropriate) to be used to satisfy required tax withholding based on the Market Value per Share of any such shares of Common Stock, as of the date of delivery of shares in satisfaction of the
applicable Award. 
 (d) No Restriction on Corporate Action. Subject to the restrictions contained in Section X, nothing
contained in the Plan shall be construed to prevent the Company or any subsidiary from taking any corporate action, whether or not such action would have an adverse effect on the Plan or any Award granted hereunder. No employee, Director,
beneficiary or other person shall have any claim against the Company or any subsidiary as a result of any such action. 
 (e)
Restrictions on Transfer of Options and Certain Underlying Shares. An Option (other than an Incentive Stock Option, which shall be subject to the transfer restrictions set forth in Section VII(c)) shall not be transferable otherwise than (i) by
will or the laws of descent and distribution, (ii) pursuant to a qualified domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder, or
(iii) with the consent of the Administrator. In the discretion of the Administrator, a percentage (determined by the Administrator and set forth in the applicable Option Agreement) of the aggregate shares of Common Stock obtained from exercises
of an Option (which percentage may be satisfied out of particular exercises as determined by the Administrator and set forth in the applicable Option Agreement) shall not be transferable prior to the earliest to occur of (x) the termination of
the relevant Option term (or such shorter period as may be determined by the Administrator and set forth in the Option Agreement), (y) the Optionee’s retirement, death or Disability, or (z) termination of the Optionee’s
employment with the Company and its subsidiaries. 
 (f) Governing Law. The Plan shall be construed in accordance with the laws
of the State of Delaware.

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