Document:

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                                                                    EXHIBIT 10.4

                        INITIAL PUBLIC OFFERING AGREEMENT

                                 BY AND BETWEEN

                           CONTINENTAL AIRLINES, INC.

                                       AND

                            EXPRESSJET HOLDINGS, INC.

                         Dated as of __________ __, 2002

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                                TABLE OF CONTENTS

<Table>
<S>        <C>                                                                                           <C>
1.    Definitions.........................................................................................1

2.    The Initial Public Offering.........................................................................5

3.    Expenses............................................................................................5

   3.1      General.......................................................................................5
   3.2      Certain Expenses Relating to the Initial Public Offering......................................5

4.    Certain Other Covenants.............................................................................5

   4.1      Financial and Other Information...............................................................5
   4.2      Other Covenants...............................................................................11
   4.3      Covenant Regarding Continental Preferred Stock................................................12
   4.4      Covenant and Representation Regarding XJT Holdings and ExpressJet.............................12
   4.5      Representation and Covenant Regarding Preferred Stock.........................................12
   4.6      Covenant and Representation Regarding Issuance of Subsidiary Stock............................12
   4.7      Representation and Covenants regarding ExpressJet Stock and Purchaser Note....................13
   4.8      Tax Opinions..................................................................................13

5.    Indemnification.....................................................................................13

   5.1      Indemnification by Holdings...................................................................13
   5.2      Indemnification by Continental................................................................14
   5.3      Tax Effects of Indemnification................................................................14
   5.4      Effect of Insurance Upon Indemnification......................................................14
   5.5      Procedure for Indemnification Involving Third-party Claims....................................15
   5.6      Procedure for Indemnification Not Involving Third-Party Claims................................16
   5.7      Exclusive Remedies............................................................................16

6.    Miscellaneous.......................................................................................17

   6.1      Survival......................................................................................17
   6.2      Complete Agreement............................................................................17
   6.3      Authority.....................................................................................17
   6.4      Governing Law.................................................................................17
   6.5      Consent to Exclusive Jurisdiction.............................................................17
   6.6      Notices.......................................................................................17
   6.7      Amendment and Modification....................................................................18
   6.8      Binding Effect; Assignment....................................................................18
   6.9      Third Party Beneficiaries.....................................................................18
   6.10     Counterparts..................................................................................19
   6.11     Waiver........................................................................................19
   6.12     Severability..................................................................................19
   6.13     Remedies......................................................................................19
   6.14     Performance...................................................................................19
   6.15     References; Construction......................................................................20

Exhibits

Agreements Subject to Section 4.2(b)...............................................................Exhibit A
</Table>

                                       i

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                        INITIAL PUBLIC OFFERING AGREEMENT

         This INITIAL PUBLIC OFFERING AGREEMENT (this "Agreement") is made and
entered into as of _________ __, 2002, by and between Continental Airlines,
Inc., a Delaware corporation ("Continental"), and ExpressJet Holdings, Inc., a
Delaware corporation and a wholly owned subsidiary of Continental ("Holdings").
Certain capitalized terms used herein are defined in Section 1 of this
Agreement.

         WHEREAS, Continental owns all of the issued and outstanding Holdings
common stock;

         WHEREAS, Holdings has previously filed the IPO Registration Statement
with the SEC but it has not yet become effective;

         WHEREAS, the parties currently contemplate that, reasonably promptly
following the execution of this Agreement, Holdings shall consummate the Initial
Public Offering;

         WHEREAS, the parties intend in this Agreement to set forth the
principal arrangements between them regarding the Initial Public Offering;

         NOW, THEREFORE, in consideration of the premises and the
representations, warranties, covenants and agreements herein contained, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound hereby, the parties
hereby agree as follows:

         1. Definitions. As used in this Agreement, the following terms shall
have the following definitions:

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

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

         "Annual Financial Statements" has the meaning set forth in Section
4.1(a)(vi).

         "Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday unless such day shall be a day when financial institutions in New York,
New York or Houston, Texas are authorized by law to close.

         "Claim" has the meaning set forth in Section 5.6.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time, together with the rules and regulations promulgated thereunder.

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

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

         "Continental Annual Statements" has the meaning set forth in Section
4.1(b)(ii).

         "Continental's Auditors" has the meaning set forth in Section
4.1(b)(ii).

         "Continental Business" means any business or operations of Continental
or any Continental Affiliates.

         "Continental Common Stock" means the Class B common stock, par value
$0.01 per share, of Continental.

         "Continental Disclosure Portions" means all material set forth in, or
incorporated by reference into, the IPO Registration Statement, to the extent
relating exclusively to (i) Continental and the Continental Affiliates or (ii)
the Continental Business.

         "Continental Public Filings" has the meaning set forth in Section
4.1(a)(xiii).

         "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.

         "Dispute Notice" means written notice of any dispute between
Continental and Holdings arising out of or relating to this Agreement, which
shall set forth, in reasonable detail, the nature of the dispute.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, together with the rules and regulations promulgated
thereunder.

         "GAAP" means generally accepted accounting principles, consistently
applied.

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

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

         "Holdings' Auditors" has the meaning set forth in Section 4.1(b)(i).

         "Holdings Business" means any business or operations of Holdings or any
Holdings Affiliates, including, in all cases, any predecessor entities.

         "Holdings Capital Stock" means all classes or series of capital stock
of Holdings.

         "Holdings Common Stock" means the common stock, par value $0.01 per
share, of Holdings.

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         "Holdings Public Documents" has the meaning set forth in Section
4.1(a)(ix).

         "Indemnifying Party" means a Person that is obligated to provide
indemnification under this Agreement.

         "Indemnitee" means a Person that is entitled to seek indemnification
under this Agreement.

         "Indemnity Payment" means an amount that an Indemnifying Party is
required to pay to an Indemnitee under this Agreement.

         "Initial Public Offering" means the initial public offering of shares
of Holdings Common Stock as contemplated by the IPO Registration Statement.

         "Insurance Proceeds" means the payment received by an insured from an
insurance carrier or paid by an insurance carrier on behalf of the insured, net
of any applicable premium adjustment and tax effect.

         "IPO Registration Statement" means the Registration Statement on Form
S-1, Registration No. 333-64808 of Holdings, as supplemented and amended from
time to time.

         "IRS" means the Internal Revenue Service of the U.S. Department of
Treasury or any successor agency.

         "Losses" means all losses, liabilities, claims, obligations, demands,
judgments, damages, dues, penalties, assessments, fines (civil or criminal),
costs, liens, expenses, forfeitures, settlements, or fees, reasonable attorneys'
fees and court costs, of any nature or kind, whether or not the same would
properly be reflected on a balance sheet, and "Loss" means any of these.

         "Notice" means any notice, request, claim, demand, or other
communication under this Agreement.

         "Person" means an individual, partnership, limited liability company,
corporation, joint stock company, trust, estate, joint venture, association or
unincorporated organization, any other form of business or professional entity
or any governmental entity or any department, agency or political subdivision
thereof.

         "Quarterly Financial Statements" has the meaning set forth in Section
4.1(a)(v).

         "Regulation S-K" means Regulation S-K of the General Rules and
Regulations promulgated by the SEC.

         "Regulation S-X" means Regulation S-X of the General Rules and
Regulations promulgated by the SEC.

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

         "Request" has the meaning set forth in Section 5.6.

         "SEC" means the United States Securities and Exchange Commission or any
successor agency.

         "Securities Act" means the Securities Act of 1933, as amended from time
to time, together with the rules and regulations promulgated thereunder.

         "Separate Counsel" has the meaning set forth in Section 5.5(b).

 "SSB" means Salomon Smith Barney Inc.

         "Subsidiary" means with respect to any specified Person, any
corporation or other legal entity of which such Person or any of its
Subsidiaries Controls or owns, directly or indirectly, more than 50% of the
voting power with respect to the election of members to the board of directors
or similar governing body; provided, however, that for the purposes of this
Agreement, neither Holdings nor any of the Subsidiaries of Holdings shall be
deemed to be Subsidiaries of Continental or of any of the Subsidiaries of
Continental.

         "Tax" means (i) any income, gross receipts, license, payroll,
employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental (including taxes under Section 59A of the Code), customs duties,
capital stock, franchise, profits, withholding, social security (or similar),
unemployment, disability, real property, personal property, sales, use,
transfer, registration, value added, alternative or add-on, minimum, estimated,
or other tax, assessment, or governmental charge of any kind whatsoever imposed
by any governmental authority, including any interest, penalty, or addition
thereto, whether disputed or not; (ii) liability for the payment of any amounts
of the type described in clause (i) above arising as a result of being (or
having been) a member of any group or being (or having been) included or
required to be included in any Tax Return related thereto; and (iii) liability
for the payment of any amounts of the type described in clause (i) above as a
result of any express or implied obligation to indemnify or otherwise assume or
succeed to the liability of any other Person.

         "Third-Party Claim" means any claim, suit, arbitration, inquiry,
proceeding or investigation by or before any court, governmental or other
regulatory or administrative agency or commission or any arbitration tribunal
asserted by a Person other than Continental or any Continental Affiliate or
Holdings or any Holdings Affiliate which gives rise to a right of
indemnification hereunder.

         "Underwriting Agreement" means the Underwriting Agreement to be entered
into among Holdings, Continental and the underwriters in connection with the
offering of Holdings Common Stock by each of Holdings and Continental in the
Initial Public Offering.

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         "Voting Stock" means with respect to any Person, all classes and series
of the capital stock of such Person entitled to vote generally in the election
of directors.

         2. The Initial Public Offering. Holdings shall (i) consult with, and
cooperate in all respects with, Continental in connection with the pricing of
the Common Stock to be offered in the Initial Public Offering, (ii) at
Continental's direction, execute and deliver the Underwriting Agreement in such
form and substance as is reasonably satisfactory to Continental and (iii) at
Continental's direction, promptly take any and all actions necessary or
desirable to consummate the Initial Public Offering as contemplated by the IPO
Registration Statement and the Underwriting Agreement.

         3. Expenses.

         3.1 General. Except as otherwise provided in this Agreement or any
other agreement between the parties relating to the Initial Public Offering, all
costs and expenses of either party hereto in connection with the Initial Public
Offering shall be paid by the party that incurs such costs and expenses.

         3.2 Certain Expenses Relating to the Initial Public Offering. Holdings
shall be responsible for the payment of all of Holdings' and Continental's
costs, fees and expenses relating to the Initial Public Offering (excluding any
discounts or commissions paid to SSB in connection with the sale by Continental
of shares of Holdings Common Stock in the Initial Public Offering), including,
but not limited to, the payment of (a) the costs, fees and expenses of all of
Continental's financial, legal, accounting and other advisors incurred in
connection with the Initial Public Offering and (b) any internal fees, costs and
expenses incurred by Continental or any Continental Affiliate in connection with
the Initial Public Offering.

         4. Certain Covenants.

         4.1 Financial and Other Information.

         (a) Financial Information. Holdings agrees that, for so long as
Continental is required to consolidate Holdings' results of operations and
financial position or to account for its investment in Holdings under the equity
method of accounting (determined in accordance with GAAP):

               (i) Holdings shall, and shall cause each of its Subsidiaries to,
maintain a system of internal accounting controls that will provide reasonable
assurance that: (A) Holdings' and such Subsidiaries' books, records and accounts
fairly reflect all transactions and dispositions of assets and (B) the specific
objectives of accounting control are achieved.

               (ii) Holdings shall, and shall cause each of its Subsidiaries to,
maintain a fiscal year which commences on January 1 and ends on December 31 of
each calendar year.

               (iii) Holdings shall deliver to Continental a trial balance
submission, which shall include amounts relating to each of its Subsidiaries, in
such format and detail as Continental

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may request, with respect to each month, within five Business Days following the
last day of each such month.

               (iv) As soon as practicable, and in any event within five
Business Days after the end of each quarter in each fiscal year of Holdings,
Holdings shall deliver to Continental a consolidated income statement and
balance sheet for Holdings and its Subsidiaries for such fiscal quarter.

               (v) As soon as practicable, and in any event within 10 Business
Days after the end of each of the first three fiscal quarters in each fiscal
year of Holdings and no later than five days before Holdings intends to file its
Quarterly Financial Statements (as defined below) with the SEC, Holdings shall
deliver to Continental drafts of (A) the consolidated financial statements of
Holdings and its Subsidiaries (and notes thereto) for such periods and for the
period from the beginning of the current fiscal year to the end of such quarter,
setting forth in each case in comparative form for each such fiscal quarter of
Holdings the consolidated figures (and notes thereto) for the corresponding
quarter and periods of the previous fiscal year and all in reasonable detail and
prepared in accordance with Article 10 of Regulation S-X, and (B) a discussion
and analysis by management of Holdings' and its Subsidiaries' financial
condition and results of operations for such fiscal period, including, without
limitation, an explanation of any material adverse change, all in reasonable
detail and prepared in accordance with Item 303(b) of Regulation S-K. The
information set forth in (A) and (B) above is herein referred to as the
"Quarterly Financial Statements." No later than the earlier of (x) two Business
Days prior to the date Holdings publicly files the Quarterly Financial
Statements with the SEC or otherwise makes such Quarterly Financial Statements
publicly available or (y) two Business Days prior to the date on which
Continental intends to file its quarterly financial statements with the SEC (as
evidenced by written notice from Continental to Holdings of such intended filing
date at least 10 Business Days prior to such intended filing date), Holdings
shall deliver to Continental the final form of the Quarterly Financial
Statements certified by the chief financial officer of Holdings as presenting
fairly, in all material respects, the financial condition and results of
operations of Holdings and its Subsidiaries; provided that Holdings may continue
to revise such Quarterly Financial Statements prior to the filing thereof in
order to make corrections and non-substantive changes which corrections and
changes shall be delivered by Holdings to Continental as soon as practicable,
and in any event within eight hours after such filing; and, provided, further,
that Continental and Holdings financial representatives shall actively consult
with each other regarding any changes (whether or not substantive) which
Holdings may consider making to its Quarterly Financial Statements and related
disclosures during the three Business Days immediately prior to any anticipated
filing with the SEC, and Holdings shall obtain Continental's consent prior to
making any change to Holdings' Quarterly Financial Statements or related
disclosures which would have an effect upon Continental's financial statements
or related disclosures. In addition to the foregoing, no Quarterly Financial
Statement or any other document which refers, or contains information with
respect, to the ownership of Holdings by Continental or the separation of
Holdings from Continental shall be filed with the SEC or otherwise made public
by Holdings or any of its Subsidiaries without the prior written consent of
Continental, which consent will not be unreasonably withheld.

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               (vi) Holdings shall deliver to Continental as soon as
practicable, and in any event within 20 Business Days after the end of each
fiscal year of Holdings and no later than 10 days before Holdings intends to
file its Annual Financial Statements (as defined below) with the SEC, (A) drafts
of the consolidated financial statements of Holdings (and notes thereto) for
such year, setting forth in each case in comparative form the consolidated
figures (and notes thereto) for the previous fiscal year and all in reasonable
detail and prepared in accordance with Regulation S-X and (B) a discussion and
analysis by management of Holdings' and its Subsidiaries' financial condition
and results of operations for such year, including, without limitation, an
explanation of any material adverse change, all in reasonable detail and
prepared in accordance with Item 303(a) of Regulation S-K. The information set
forth in (A) and (B) above is herein referred to as the "Annual Financial
Statements." No later than the earlier of (1) five Business Days prior to the
date Holdings publicly files the Annual Financial Statements with the SEC or
otherwise makes such Annual Financial Statements publicly available or (2) five
Business Days prior to the date on which Continental intends to file its annual
financial statements with the SEC (as evidenced by written notice from
Continental to Holdings of such intended filing date at least ten Business Days
prior to such intended filing date), Holdings shall deliver to Continental the
final form of the Annual Financial Statements certified by the chief financial
officer of Holdings as presenting fairly, in all material respects, the
financial condition and results of operations of Holdings and its Subsidiaries;
provided that Holdings may continue to revise such Annual Financial Statements
prior to the filing thereof in order to make corrections and non-substantive
changes which corrections and changes shall be delivered by Holdings to
Continental as soon as practicable, and in any event within eight hours after
such filing; and, provided, further, that Continental and Holdings financial
representatives shall actively consult with each other regarding any changes
(whether or not substantive) which Holdings may consider making to its Annual
Financial Statements and related disclosures during the three Business Days
immediately prior to any anticipated filing with the SEC, and Holdings shall
obtain Continental's consent prior to making any change to Holdings' Annual
Financial Statements or related disclosures which would have an effect upon
Continental's financial statements or related disclosures. In addition to the
foregoing, no Annual Financial Statement or any other document which refers, or
contains information with respect, to the ownership of Holdings by Continental
or the separation of Holdings from Continental shall be filed with the SEC or
otherwise made public by Holdings or any of its Subsidiaries without the prior
written consent of Continental, which consent will not be unreasonably withheld.
In any event, Holdings shall deliver to Continental, no later than 20 Business
Days after the end of each fiscal year of Holdings, the final form of the Annual
Financial Statements accompanied by an opinion thereon by Holdings' independent
certified public accountants.

               (vii) Holdings shall deliver to Continental all Quarterly and
Annual Financial Statements of each Subsidiary of Holdings which is itself
required to file financial statements with the SEC or otherwise make such
financial statements publicly available, with such financial statements to be
provided in the same manner and detail and on the same time schedule as those
financial statements of Holdings required to be delivered to Continental
pursuant to this Section 4.1(a).

               (viii) All information provided by Holdings or any of its
Subsidiaries to Continental pursuant to Sections 4.1(a)(iii) through (vii)
inclusive shall be consistent in terms of

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format and detail and otherwise with the procedures in effect on the date hereof
with respect to the provision of such financial information by Holdings and its
Subsidiaries, as applicable, to Continental (and, where appropriate, as
presently presented in financial reports to Continental's Board of Directors),
with such changes therein as may be requested by Continental from time to time
consistent with changes in reporting by sectors and Subsidiaries of Continental.

               (ix) Holdings and each of its Subsidiaries which files
information with the SEC shall deliver to Continental: (A) as soon as the same
are prepared, substantially final drafts of: (x) all reports, notices and proxy
and information statements to be sent or made available by Holdings or any of
its Subsidiaries to their security holders, (y) all regular, periodic and other
reports to be filed or furnished under Sections 13, 14 and 15 of the Exchange
Act (including Reports on Forms 10-K, 10-Q and 8-K and Annual Reports to
Shareholders), and (z) all registration statements and prospectuses to be filed
by Holdings or any of its Subsidiaries with the SEC or any securities exchange
or interdealer quotation system pursuant to the listed company manual (or
similar requirements) of such exchange or quotation system (collectively, the
documents identified in clauses (x), (y) and (z) are referred to herein as
"Holdings Public Documents"), and (B) as soon as practicable, but in no event
later than four Business Days (except where impracticable in the case of a
report on Form 8-K) prior to the date the same are printed, sent or filed,
whichever is earliest, final copies of all such Holdings Public Documents;
provided that Holdings may continue to revise such Holdings Public Documents
prior to the filing thereof in order to make corrections and non-substantive
changes which corrections and changes shall be delivered by Holdings to
Continental as soon as practicable, and in any event within eight hours after
such filing; and, provided, further, that Continental and Holdings financial
representatives shall actively consult with each other regarding any changes
(whether or not substantive) which Holdings may consider making to any of its
Holdings Public Documents and related disclosures prior to any anticipated
filing with the SEC, and Holdings shall obtain Continental's consent prior to
making any change to its Holdings Public Documents or related disclosures which
would have an effect upon Continental's financial statements or related
disclosures. In addition to the foregoing, no Holdings Public Document or any
other document which refers, or contains information with respect, to the
ownership of Holdings by Continental or the separation of Holdings from
Continental shall be filed with the SEC or otherwise made public by Holdings or
any of its Subsidiaries without the prior written consent of Continental, which
consent will not be unreasonably withheld.

               (x) Holdings shall, as promptly as practicable, deliver to
Continental copies of all annual and other budgets and financial projections
(consistent in terms of format and detail and otherwise with the procedures in
effect on the date hereof) relating to Holdings or any of its Subsidiaries and
shall provide Continental an opportunity to meet with management of Holdings to
discuss such budgets and projections, which obligations may be satisfied by
delivery of such copies to Continental's designees to Holdings' Board of
Directors, if any.

               (xi) With reasonable promptness, Holdings shall deliver to
Continental such additional financial and other information and data with
respect to Holdings and its Subsidiaries and their business, properties,
financial positions, results of operations and prospects as from time to time
may be reasonably requested by Continental.

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               (xii) A reasonable period of time prior to issuance, Holdings
shall deliver to Continental copies of substantially final drafts of all press
releases and other statements to be made available by Holdings or any of its
Subsidiaries to employees of Holdings or any of its Subsidiaries or to the
public concerning material developments in the business, properties, earnings,
results of operations, financial condition or prospects of Holdings or any of
its Subsidiaries or the relationship between (A) Holdings or any of its
Subsidiaries and (B) Continental or any of its Affiliates. Continental shall
have the right to review and comment on such press releases and other
statements. Holdings shall include in any final press release or other statement
all reasonable comments of Continental. In addition, prior to the issuance of
any such press release or public statement, Holdings shall consult with
Continental regarding any changes (other than typographical or other similar
minor changes) to such substantially final drafts. Immediately following the
issuance thereof, Holdings shall deliver to Continental copies of final drafts
of all press releases and other public statements. Holdings and Continental will
consult with each other as to the timing of their annual and quarterly earnings
releases and will give each other an opportunity to review the information
therein relating to Holdings and its Subsidiaries and to comment thereon.

               (xiii) Holdings shall cooperate fully, and cause its accountants
to cooperate fully, with Continental to the extent requested by Continental in
the preparation of Continental's public earnings releases, quarterly reports on
Form 10-Q, Annual Reports to Securityholders, Annual Reports on Form 10-K, any
Current Reports on Form 8-K and any other proxy, information and registration
statements, reports, notices, prospectuses and any other filings made by
Continental with the SEC, any national securities exchange or otherwise made
publicly available (collectively, "Continental Public Filings"). Holdings agrees
to provide to Continental all information that Continental reasonably requests
in connection with any Continental Public Filings or that, in the judgment of
Continental's legal department, is required to be disclosed or incorporated by
reference therein under any law, rule or regulation. Such information shall be
provided by Holdings in a timely manner on the dates requested by Continental
(which may be earlier than the dates on which Holdings otherwise would be
required hereunder to have such information available) to enable Continental to
prepare, print and release all Continental Public Filings on such dates as
Continental shall determine. Holdings shall cause its accountants to consent to
any reference to them as experts in any Continental Public Filings required
under any law, rule or regulation. If and to the extent requested by
Continental, Holdings shall diligently and promptly review all drafts of such
Continental Public Filings and prepare in a diligent and timely fashion any
portion of such Continental Public Filing pertaining to Holdings. Prior to any
printing or public release of any Continental Public Filing, an appropriate
executive officer of Holdings shall, if requested by Continental, certify that
the information relating to Holdings, any Holdings Affiliate or the Holdings
Business in such Continental Public Filing is accurate, true and correct in all
material respects. Unless required by law, rule or regulation, Holdings shall
not publicly release any financial or other information which conflicts with the
information with respect to Holdings, any Holdings Affiliate or the Holdings
Business that is included in any Continental Public Filing without Continental's
prior written consent. Prior to the release or filing thereof, Continental shall
provide Holdings with a draft of any portion of a Continental Public Filing
containing information relating to Holdings and its Subsidiaries and shall give
Holdings an opportunity to review such information and comment thereon; provided
that

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Continental shall determine in its sole discretion the final form and content of
all Continental Public Filings.

         (b) Auditors and Audits; Annual Statements and Accounting. Holdings
agrees that, for so long as Continental is required to consolidate Holdings'
results of operations and financial position or to account for its investment in
Holdings under the equity method of accounting (in accordance with GAAP):

               (i) Holdings shall not select a different accounting firm than
Ernst & Young LLP to serve as its (and its Subsidiaries') independent certified
public accountants ("Holdings' Auditors") without Continental's prior written
consent (which shall not be unreasonably withheld).

               (ii) Holdings shall use its best efforts to enable the Holdings
Auditors to complete their audit such that they will date their opinion on
Holdings' audited annual financial statements on the same date that
Continental's independent certified public accountants ("Continental's
Auditors") date their opinion on Continental's audited annual financial
statements (the "Continental Annual Statements"), and to enable Continental to
meet its timetable for the printing, filing and public dissemination of the
Continental Annual Statements.

               (iii) Holdings shall provide to Continental on a timely basis all
information that Continental reasonably requires to meet its schedule for the
preparation, printing, filing, and public dissemination of the Continental
Annual Statements. Without limiting the generality of the foregoing, Holdings
will provide all required financial information with respect to Holdings and its
Subsidiaries to Holdings' Auditors in a sufficient and reasonable time and in
sufficient detail to permit Holdings' Auditors to take all steps and perform all
reviews necessary to provide sufficient assistance to Continental's Auditors
with respect to information to be included or contained in the Continental
Annual Statements. Continental will provide in a timely manner to Holdings all
information that is reasonably necessary for Holdings to comply with this
Section 4.1(b)(iii).

               (iv) Holdings shall authorize Holdings' Auditors to make
available to Continental's Auditors both the personnel who performed or are
performing the annual audit of Holdings and work papers related to the annual
audit of Holdings, in all cases within a reasonable time prior to Holdings'
Auditors' opinion date, so that Continental's Auditors are able to perform the
procedures they consider necessary to take responsibility for the work of
Holdings' Auditors as it relates to Continental's Auditors' report on the
Continental Annual Statements, all within sufficient time to enable Continental
to meet its timetable for the printing, filing and public dissemination of the
Continental Annual Statements.

               (v) Holdings shall provide Continental's internal auditors access
to Holdings' and its Subsidiaries' books and records so that Continental may
conduct reasonable audits relating to the financial statements provided by
Holdings pursuant hereto as well as to the internal accounting controls and
operations of Holdings and its Subsidiaries.

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               (vi) Holdings shall give Continental as much prior notice as
reasonably practical of any proposed determination of, or any significant
changes in, its accounting estimates or accounting principles from those in
effect on the date hereof. Holdings will consult with Continental and, if
requested by Continental, Holdings will consult with Continental's auditors with
respect thereto. Holdings will not make any such determination or changes
without Continental's prior written consent if such a determination or a change
would be sufficiently material to be required to be disclosed in Holdings'
financial statements as filed with the SEC or otherwise publicly disclosed
therein.

               (vii) Notwithstanding clause (vi) above, Holdings shall make any
changes in its accounting estimates or accounting principles that are requested
by Continental in order for Holdings' accounting estimates and principles to be
consistent with those of Continental.

         Nothing in this Section 4.1 shall require Holdings to violate any
agreement with any of its customers regarding the confidentiality of
commercially sensitive information relating to that customer or its business;
provided that in the event that Holdings is required under this Section 4.1 to
disclose any such information, Holdings shall use all commercially reasonable
efforts to seek to obtain such customer's consent to the disclosure of such
information.

         4.2 Covenants Against Taking Certain Actions Affecting Continental.
Holdings hereby covenants and agrees that, for so long as Continental
beneficially owns at least 50% of the value of all outstanding shares of
Holdings Capital Stock or 50% of the total combined voting power of all
outstanding shares of Voting Stock of Holdings:

         (a) Holdings shall not, without the prior written consent of
Continental (which it may withhold in its sole and absolute discretion), take,
or cause to be taken, directly or indirectly, any action, including making or
failing to make any election under the law of any state, which has the effect,
directly or indirectly, of restricting or limiting the ability of Continental to
freely sell, transfer, assign, pledge or otherwise dispose of shares of Holdings
Common Stock or would restrict or limit the rights of any transferee of
Continental as a holder of Holdings Common Stock. Without limiting the
generality of the foregoing, Holdings shall not, without the prior written
consent of Continental (which it may withhold in its sole and absolute
discretion), take any action, or recommend to its stockholders any action, which
would among other things, limit the legal rights of, or deny any benefit to,
Continental as a Holdings stockholder in a manner not applicable to Holdings
stockholders generally.

         (b) To the extent that Continental is a party to any contract or
agreement with a third party (i) that provides that certain actions of
Continental's Subsidiaries may result in Continental being in breach of or in
default under such agreement and Continental has advised Holdings of the
existence, and has made available to Holdings copies, of such contract or
agreement (or the relevant portions thereof), (ii) to which Holdings or any of
its Subsidiaries is a party or (iii) under which Holdings or any of its
Subsidiaries has performed any obligations on or before the date hereof,
Holdings shall not take, and shall cause its Subsidiaries not to take, any
actions that reasonably could result in Continental being in breach of or in
default under any such contract or agreement. As of the date hereof, the
contracts and agreements described in clause (i) above are set forth or
generally described on Exhibit A attached hereto. Holdings hereby acknowledges

                                       11

<PAGE>

and agrees that Continental has made available to Holdings copies of each
contract or agreement (or the relevant portion thereof) described on Exhibit A.
The parties acknowledge and agree that, after the date hereof, Continental may
in good faith (and not solely with the intention of imposing restrictions on
Holdings pursuant to this covenant) amend the referenced agreements or enter
into additional contracts or agreements that provide that certain actions of
Continental's Subsidiaries may result in Continental being in breach of or in
default under such agreements. In such event, Exhibit A shall be deemed to be
automatically amended to reflect the addition of any other contracts or
agreements (or relevant portions thereof) of which Continental advises Holdings
after the date hereof in accordance with this Section 4.2(b).

         4.3 Covenant Regarding Continental Preferred Stock. For so long as
Holdings shall constitute a Subsidiary or Affiliate of Continental, in each case
as such terms are defined in the Certificate of Designations of Series B
Preferred Stock, par value $0.01, of Continental, Holdings shall not take any
actions that reasonably could result in the occurrence of any event of the type
(i) described in Section 4(2) of such Certificate of Designations in respect of
which the holder of the Series B Preferred Stock would be entitled to vote, or
(ii) which would constitute a CO Change of Control as defined in Section 8 of
such Certificate of Designations.

         4.4 Covenant and Representation Regarding XJT Holdings and ExpressJet.
There is no current plan or intention on the part of Holdings, XJT Holdings,
Inc., a Delaware corporation and a wholly owned subsidiary of Holdings ("XJT
Holdings") or ExpressJet Airlines, Inc., a Delaware corporation and a wholly
owned subsidiary of XJT Holdings ("ExpressJet"), to enter into any merger or
consolidation or any transaction that would be treated for federal income tax
purposes as a liquidation of either XJT Holdings or ExpressJet (or would result
in XJT Holdings or ExpressJet being deemed liquidated for federal income tax
purposes), and Holdings shall not permit XJT Holdings or ExpressJet to enter
into, or agree to enter into, any such transaction that would be treated as, or
result in, a liquidation of XJT Holdings or ExpressJet into Holdings, XJT
Holdings, or any of their Affiliates, within two years of the Initial Public
Offering.

         4.5 Representation and Covenant Regarding Preferred Stock. Holdings and
its Affiliates will treat the Series A Cumulative Redeemable Preferred Stock of
ExpressJet (the "Preferred Stock") as equity for financial reporting and tax
purposes. Neither Holdings nor any of its Affiliates shall (i) acquire or redeem
any shares of the Preferred Stock, other than upon redemption of such Preferred
Stock in accordance with the Mandatory Redemption or Optional Redemption
provisions of the certificate of designation relating to the Preferred Stock,
(ii) enter into any arrangement that reduces the risk of loss of the holders of
the Preferred Stock with respect to their interest therein (including agreeing
in advance to exercise ExpressJet's rights under the Optional Redemption
provisions) or (iii) take any action that could result in the holders of the
Preferred Stock acquiring voting rights other than pursuant to the terms of the
certificate of designation relating to the Preferred Stock as currently in
effect.

         4.6 Covenant and Representation Regarding Issuance of Subsidiary Stock.
There is no current plan or intention on the part of Holdings, XJT Holdings or
ExpressJet, to cause ExpressJet to issue or sell or to agree to issue or sell,
any additional shares of Preferred Stock (or any other securities of ExpressJet
that for purposes of the section 368(c) of the Code, would be treated as part of
the same class of stock as the Preferred Stock), and neither Holdings nor XJT
Holdings shall permit ExpressJet to issue or sell, or to

                                       12
<PAGE>

agree to issue or sell, any such shares or securities within one year of the
consummation of the Initial Public Offering. There is no current plan or
intention on the part of Holdings, XJT Holdings or ExpressJet, to sell or issue
common equity in XJT Holdings or ExpressJet to any Person other than Holdings or
XJT Holdings.

         4.7 Representation and Covenants regarding ExpressJet Stock and
Purchaser Note. XJT Holdings has no plan or intention to transfer, distribute or
otherwise dispose of the common stock of ExpressJet. XJT Holdings has no current
plan or intention to transfer or dispose of the promissory note received in
connection with its sale of the Preferred Stock and shall not transfer or
dispose of such note within one year of the Initial Public Offering.

         4.8 Tax Opinions. Holdings shall, and shall cause its Affiliates to,
cooperate with, and provide any representations reasonably requested by,
Continental's tax advisers in connection with any opinions to be rendered with
respect to the transactions contemplated hereby, including without limitation
the transfer of assets from XJT Holdings to ExpressJet and the issuance and sale
of the Preferred Stock, and hereby agrees that any representations made to such
advisers shall be for the benefit of Continental and shall have the same effect
as if made herein.

         5. Indemnification.

         5.1 Indemnification by Holdings. Holdings shall indemnify, defend and
hold harmless Continental, all Continental Affiliates and each of their
respective directors, officers and employees (in their capacities as such), from
and against:

         (a) all Losses, including any resulting reduction in payments by
Holdings to Continental pursuant to that certain Tax Agreement by and between
Continental and Holdings dated as of the date hereof, relating to, arising out
of, or due to, directly or indirectly, any breach by Holdings or any Holdings
Affiliate of any of the provisions of this Agreement;

         (b) all Losses relating to, arising out of, or due to, directly or
indirectly, any incorrect, inaccurate or incomplete financial and other
information provided by Holdings or any Holdings Affiliate to Continental
pursuant to Section 4.1 of this Agreement; and

         (c) all Losses relating to, arising out of, or due to any untrue
statement or alleged untrue statement of a material fact contained in, or
incorporated by reference into, the IPO Registration Statement or the omission
or alleged omission to state (whether pursuant to direct statement or
incorporation by reference) in the IPO Registration Statement a material fact
required to be stated therein or necessary to make the statements therein not
misleading other than with respect to the Continental Disclosure Portions.

         5.2 Indemnification by Continental. Continental shall indemnify,
defend, and hold harmless Holdings, all Holdings Affiliates, and each of their
respective directors, officers and employees (in their capacities as such), from
and against:

         (a) all Losses relating to, arising out of, or due to, directly or
indirectly, any breach by Continental or any Continental Affiliate of any of the
provisions of this Agreement; and

                                       13

<PAGE>

         (b) all Losses relating to, arising out of, or due to any untrue
statement or alleged untrue statement of a material fact contained in, or
incorporated by reference into, the Continental Disclosure Portions of the IPO
Registration Statement or the omission or alleged omission to state (whether
pursuant to direct statement or incorporation by reference) in the Continental
Disclosure Portions of the IPO Registration Statement a material fact required
to be stated therein or necessary to make the statements therein not misleading.

         (c) any final and non-appealable reduction by the federal government or
any agency thereof in the amount of the $24,899,649 federal grant to Holdings
pursuant to the Air Transportation and System Stabilization Act, following an
audit conducted pursuant to such act, which reduction shall be deemed to be a
Loss for purposes of this Section 5.

         5.3 Tax Effects of Indemnification. The amount of any Loss for which
indemnification is provided under this Agreement shall be (i) increased to take
account of net Tax cost, if any, incurred by the Indemnitee arising from the
receipt or accrual of an Indemnity Payment hereunder (grossed up for such
increase) and (ii) reduced to take account of net Tax benefit, if any, realized
by the Indemnitee arising from incurring or paying such Loss. In computing the
amount of any such Tax cost or Tax benefit, the Indemnitee shall be deemed to
recognize all other items of income, gain, loss, deduction or credit before
recognizing any item arising from the receipt or accrual of any Indemnity
Payment hereunder or incurring or paying any indemnified Loss. Any Indemnity
Payment hereunder shall initially be made without regard to this Section 5.3 and
shall be increased or reduced to reflect any such net Tax cost (including
gross-up) or net Tax benefit only after the Indemnitee has actually realized
such cost or benefit. For purposes of this Agreement, an Indemnitee shall be
deemed to have "actually realized" a net Tax cost or a net Tax benefit to the
extent that, and at such time as, the amount of Taxes payable by such Indemnitee
is increased above or reduced below, as the case may be, the amount of Taxes
that such Indemnitee would be required to pay but for the receipt or accrual of
the Indemnity Payment or the incurrence or payment of such Loss. The amount of
any increase or reduction hereunder shall be adjusted to reflect any final
determination (which shall include the execution of Form 870-AD or successor
form) with respect to the Indemnitee's liability for Taxes, and payments between
Continental and Holdings to reflect such adjustment shall be made if necessary.

         5.4 Effect of Insurance Upon Indemnification. The amount which an
Indemnifying Party is required to pay to any Indemnitee pursuant to this Section
5 shall be reduced (including retroactively) by any Insurance Proceeds and other
amounts actually recovered by such Indemnitee in reduction of the related Loss,
it being understood and agreed that each of Holdings and Continental shall use
commercially reasonable efforts to collect any such proceeds or other amounts to
which it or any of its Affiliates is entitled, without regard to whether it is
the Indemnifying Party hereunder. No Indemnitee shall be required, however, to
collect any such proceeds or other amounts prior to being entitled to
indemnification from an Indemnifying Party hereunder. If an Indemnitee receives
an Indemnity Payment in respect of a Loss and subsequently receives Insurance
Proceeds or other amounts in respect of such Loss, then such Indemnitee shall
pay to such Indemnifying Party an amount equal to the difference between (a) the
sum of the amount of such Indemnity Payment and the amount of such Insurance
Proceeds or

                                       14
<PAGE>

other amounts actually received and (b) the amount of such Loss, in each case
adjusted (at such time as appropriate adjustment can be determined) to reflect
any premium adjustment attributable to such claim.

         5.5 Procedure for Indemnification Involving Third-party Claims.

         (a) Notice of Claim. If any Indemnitee receives notice of the assertion
of any Third-Party Claim with respect to which an Indemnifying Party is
obligated under this Agreement to provide indemnification, such Indemnitee shall
give such Indemnifying Party notice thereof (together with a copy of such
Third-Party Claim, process or other legal pleading) promptly after becoming
aware of such Third-Party Claim; provided, however, that the failure of any
Indemnitee to give notice as provided in this Section shall not relieve any
Indemnifying Party of its obligations under this Section 5, except to the extent
that such Indemnifying Party is actually prejudiced by such failure to give
notice. Such notice shall describe such Third-Party Claim in reasonable detail.

         (b) Obligation of Indemnifying Party. An Indemnifying Party, at such
Indemnifying Party's own expense and through counsel chosen by such Indemnifying
Party (which counsel shall be reasonably acceptable to the Indemnitee), may
elect to defend any Third-Party Claim. If an Indemnifying Party elects to defend
a Third-Party Claim, then, within ten Business Days after receiving notice of
such Third-Party Claim (or sooner, if the nature of such Third-Party Claim so
requires), such Indemnifying Party shall notify the Indemnitee of its intent to
do so, and such Indemnitee shall cooperate in the defense of such Third-Party
Claim. Such Indemnifying Party shall pay such Indemnitee's reasonable
out-of-pocket expenses incurred in connection with such cooperation. Such
Indemnifying Party shall keep the Indemnitee reasonably informed as to the
status of the defense of such Third-Party Claim. After notice from an
Indemnifying Party to an Indemnitee of its election to assume the defense of a
Third-Party Claim, such Indemnifying Party shall not be liable to such
Indemnitee under this Section 5 for any legal or other expenses subsequently
incurred by such Indemnitee in connection with the defense thereof other than
those expenses referred to in the preceding sentence; provided, however, that
such Indemnitee shall have the right to employ one law firm as counsel, together
with a separate local law firm in each applicable jurisdiction ("Separate
Counsel"), to represent such Indemnitee in any action or group of related
actions (which firm or firms shall be reasonably acceptable to the Indemnifying
Party) if, in such Indemnitee's reasonable judgment at any time, either a
conflict of interest between such Indemnitee and such Indemnifying Party exists
in respect of such claim, or there may be defenses available to such Indemnitee
that are different from or in addition to those available to such Indemnifying
Party and the representation of both parties by the same counsel would be
inappropriate, and in that event (i) the reasonable fees and expenses of such
Separate Counsel shall be paid by such Indemnifying Party (it being understood,
however, that the Indemnifying Party shall not be liable for the expenses of
more than one Separate Counsel (excluding local counsel) with respect to any
Third-Party Claim (even if against multiple Indemnitees)) and (ii) each of such
Indemnifying Party and such Indemnitee shall have the right to conduct its own
defense in respect of such claim. If an Indemnifying Party elects not to defend
against a Third-Party Claim, or fails to notify an Indemnitee of its election as
provided in this Section 5 within the period of ten Business Days described
above, the Indemnitee may defend, compromise, and settle such Third-Party Claim
and shall be entitled to indemnification

                                       15

<PAGE>

hereunder (to the extent permitted hereunder); provided, however, that no such
Indemnitee may compromise or settle any such Third-Party Claim without the prior
written consent of the Indemnifying Party, which consent shall not be
unreasonably withheld or delayed. Notwithstanding the foregoing, the
Indemnifying Party shall not, without the prior written consent of the
Indemnitee, (i) settle or compromise any Third-Party Claim or consent to the
entry of any judgment which does not include as an unconditional term thereof
the delivery by the claimant or plaintiff to the Indemnitee of a written release
from all liability in respect of such Third-Party Claim or (ii) settle or
compromise any Third-Party Claim in any manner that would be reasonably likely
to have a material adverse effect on the Indemnitee.

         (c) Joint Defense of Certain Claims. Notwithstanding the provisions of
Section 5.5(b), Continental and Holdings shall jointly control the defense of,
and cooperate with each other with respect to defending, any Third-Party Claim
with respect to which each party is claiming that it is entitled to
indemnification under Section 5.1 or 5.2. If either Continental or Holdings
fails to defend jointly any such Third-Party Claim, the other party shall solely
defend such Third-Party Claim and the party failing to defend jointly shall use
all commercially reasonable efforts to cooperate with the other party in its
defense of such Third-Party Claim; provided, however, that neither party may
compromise or settle any such Third-Party Claim without the prior written
consent of the other party, which consent shall not be unreasonably withheld or
delayed. All costs and expenses of either party in connection with, and during
the course of, the joint control of the defense of any such Third-Party Claim
shall be initially paid by the party that incurs such costs and expenses. Such
costs and expenses shall be reallocated and reimbursed in accordance with the
respective indemnification obligations of the parties at the conclusion of the
defense of such Third-Party Claim.

         5.6 Procedure for Indemnification Not Involving Third-Party Claims. If
any Indemnitee desires to assert against an Indemnifying Party any claim for
indemnification under this Section 5 other than a Third-Party Claim (a "Claim"),
the Indemnitee shall deliver to the Indemnifying Party notice of its demand for
satisfaction of such Claim (a "Request"), specifying in reasonable detail the
amount of such Claim and the basis for asserting such Claim. Within 30 days
after the Indemnifying Party has been given a Request, the Indemnifying Party
shall either (i) satisfy the Claim requested to be satisfied in such Request by
delivering to the Indemnitee payment by wire transfer or a certified or bank
cashier's check payable to the Indemnified Party in immediately available funds
in an amount equal to the amount of such Claim, or (ii) notify the Indemnitee
that the Indemnifying Party contests such Claim by delivering to the Indemnitee
a Dispute Notice, stating that the Indemnifying Party objects to such Claim and
specifying in reasonable detail the basis for contesting such Claim.

         5.7 Exclusive Remedies. Except for the right to pursue equitable
remedies, the remedies provided in this Section 5 shall be deemed the sole and
exclusive remedies of the parties with respect to the subject matters of the
indemnification provisions of this Section 5.

                                       16

<PAGE>

         6. Miscellaneous.

         6.1 Survival. The representations and warranties contained in this
Agreement shall survive the execution and delivery hereof until the expiration
of all applicable statutes of limitations.

         6.2 Complete Agreement. Except as otherwise set forth in this
Agreement, this Agreement and the exhibits hereto 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.

         6.3 Authority. Each of the parties hereto represents to the other that
(a) it has the corporate power and authority to execute, deliver and perform
this Agreement, (b) the execution, delivery and performance of this Agreement by
it has been duly authorized by all necessary corporate action, (c) it has duly
and validly executed and delivered this Agreement, and (d) this Agreement is a
legal, valid and binding obligation, enforceable against it in accordance with
its terms subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors' rights generally and
general equity principles.

         6.4 Governing Law This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas (other than the laws regarding
conflicts of laws) as to all matters, including matters of validity,
construction, effect, performance and remedies.

         6.5 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 such state courts of Texas
for any such action, suit or proceeding, (b) agrees not to commence any such
action, suit or proceeding except in such 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 such 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
such 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 such 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
either 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
Agreement, each such party shall maintain a duly appointed agent for the service
of summonses and other legal process in the State of Texas.

         6.6 Notices. All Notices shall be in writing and shall be deemed given
upon (a) a transmitter's confirmation of a receipt of a facsimile transmission
(but only if followed by confirmed delivery by a standard overnight courier the
following Business Day or if delivered by

                                       17

<PAGE>

hand the following Business Day), or (b) confirmed delivery by 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 Holdings, 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 6.6.

         6.7 Amendment and Modification. This Agreement may not be amended or
modified in any respect except by a written agreement signed by both of the
parties hereto.

         6.8 Binding Effect; Assignment. This Agreement and all of the
provisions hereof shall be binding upon the parties hereto and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns. Except with respect to a merger of either party with another Person,
neither this Agreement nor any of the rights, interests or obligations hereunder
shall be assigned by either party hereto without the prior written consent of
the other party, which consent shall not be unreasonably withheld or delayed.

         6.9 Third Party Beneficiaries. The Indemnitees and their respective
successors shall be third party beneficiaries of the indemnification provisions
of Section 5, as applicable, and shall be entitled to enforce those provisions
and in connection with such enforcement shall be subject to Section 6.5 in each
such case as fully and to the same extent as if they were parties to this
Agreement. Except as provided in the previous sentence, nothing in this
Agreement, express or implied, is intended to or shall confer upon any Person
any legal or equitable right, benefit or

                                      18

<PAGE>

remedy of any nature whatsoever under or by reason of this Agreement, and no
Person (other than as provided in the previous sentence) shall be deemed a third
party beneficiary under or by reason of this Agreement.

         6.10 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. The Agreement may be
executed by facsimile signature.

         6.11 Waiver. The observance of any term of this 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 Agreement,
no delay or omission on the part of any party in exercising any right or
privilege under this Agreement shall operate as a waiver thereof, nor shall any
waiver on the part of any party of any right or privilege under this Agreement
operate as a waiver of any other right or privilege under this 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 Agreement. No failure by either 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.

         6.12 Severability. 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.

         6.13 Remedies. Except as otherwise provided herein, each of Continental
and Holdings shall be entitled to enforce its rights under this Agreement
specifically, to recover damages and costs (including reasonable attorneys'
fees) caused by any breach of any provision of this Agreement and to exercise
all other rights existing in its favor. Each of Continental and Holdings
acknowledges and agrees that under certain circumstances the breach by
Continental or any of its Affiliates or Holdings or any of its Affiliates of a
term or provision of this Agreement will materially and irreparably harm the
other party, that money damages will accordingly not be an adequate remedy for
such breach and that the non-defaulting party, in its sole discretion and in
addition to its rights under this Agreement and any other remedies it may have
at law or in equity and notwithstanding Section 6.5, 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 Agreement.

         6.14 Performance. Unless a higher standard of effort is otherwise
required herein, each of the parties hereto shall use all commercially
reasonable efforts to cause to be performed all actions, agreements and
obligations set forth herein to be performed by any Affiliate of such party.

                                       19

<PAGE>

         6.15 References; Construction. The table of contents and the section
and other headings and subheadings contained in this Agreement and the exhibits
hereto 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 Agreement or any exhibit hereto. 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" or an "Exhibit" shall be deemed
to refer to a section of this Agreement or an exhibit to this Agreement, as
applicable. The words "hereof," "herein" and "hereunder" and words of similar
import referring to this Agreement refer to this Agreement as a whole and not to
any particular provision of this Agreement. Whenever the words "include,"
"includes" or "including" are used in this Agreement, unless otherwise
specifically provided, they shall be deemed to be followed by the words "without
limitation." This 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.

                                       20

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Initial Public
Offering Agreement to be duly executed and delivered as of the date and year
first written above.

                                                     CONTINENTAL AIRLINES, INC.

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

                                                     EXPRESSJET HOLDINGS, INC.

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

                                       21<PAGE>
                                                                    EXHIBIT 10.5

                          REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this "Agreement"), is made and entered
into as of ________ __, 2002, between Continental Airlines, Inc., a Delaware
corporation ("Continental"), and ExpressJet Holdings, Inc., a Delaware
corporation and a wholly owned subsidiary of Continental ("Holdings").

     WHEREAS, Continental currently owns all of the issued and outstanding
shares of Holdings' capital stock;

     WHEREAS, Holdings has filed a Registration Statement (File No. 333-64808)
with the Securities and Exchange Commission (the "SEC") on Form S-1 (the
"Registration Statement") in connection with the initial public offering (the
"IPO") of shares of its common stock, par value $.01 per share ("Common Stock");

     WHEREAS, Continental and Holdings desire to make certain arrangements to
provide Continental with registration rights with respect to any shares of
Common Stock it holds;

     NOW THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and intending to be legally bound
hereby, the parties hereby agree as follows:

     1. Effectiveness of Agreement; Term.

     1.1 Effective Date. This Agreement shall become effective upon the
consummation of the IPO (the "Effective Date").

     1.2 Shares Covered. This Agreement covers those shares of Common Stock that
are held by Continental immediately following the IPO (subject to the provisions
of Section 7, the "Shares"). The Shares shall include any securities issued or
issuable with respect to the Shares by way of a stock dividend or a stock split
or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization. Continental and any Permitted Transferees
(as defined in Section 2.5) are each referred to herein as a "Holder" and
collectively as the "Holders" and the Holders of Shares proposed to be included
in any registration under this Agreement are each referred to herein as a
"Selling Holder" and collectively as the "Selling Holders."

     2. Demand Registration.

     2.1 Notice. Upon the terms and subject to the conditions set forth herein,
upon written notice of any Holder requesting that Holdings effect the
registration under the Securities Act of 1933, as amended (the "Securities
Act"), of any or all of the Shares held by it, which notice shall specify the
intended method or methods of disposition of such Shares (which methods may
include, without limitation, a Shelf Registration, a Convertible Registration or
an

<PAGE>

Exchange Registration (as such terms are defined in Section 2.6)), Holdings will
promptly give written notice of the proposed registration to all other Holders
and will use its best efforts to effect (at the earliest practicable date) the
registration under the Securities Act of such Shares (and the Shares of any
other Holders joining in such request as are specified in a written notice
received by Holdings within 20 days after receipt of Holdings' written notice of
the proposed registration) for disposition in accordance with the intended
method or methods of disposition stated in such request (each registration
request pursuant to this Section 2.1 is sometimes referred to herein as a
"Demand Registration"); provided, however, that:

         (a) Holdings shall not be obligated to effect registration with respect
to Shares pursuant to this Section 2 within 60 days after the effective date of
a previous registration, other than a Shelf Registration, effected with respect
to Shares pursuant to this Section 2;

         (b) if, while a registration request is pending pursuant to this
Section 2, the Board of Directors of Holdings determines in its good faith
judgment that such registration would reasonably be expected to have a material
adverse effect on any existing proposal or plans by Holdings or any of its
subsidiaries to engage in any material acquisition, merger, consolidation,
tender offer, other business combination, reorganization, securities offering or
other material transaction, Holdings may postpone for up to 60 days the filing
or effectiveness of such registration; provided, however, that Holdings may
delay a Demand Registration hereunder only once in any 12-month period;

         (c) except in the case of a Convertible Registration or an Exchange
Registration, the number of the Shares registered pursuant to any registration
requested pursuant to this Section 2 shall have an aggregate expected offering
price of at least $25 million; and

         (d) if a Demand Registration is an underwritten offering and the
managing underwriters advise Holdings in writing that in their opinion the
number of Shares requested to be included in such offering exceeds the number of
Shares that can be sold in an orderly manner in such offering within a price
range acceptable to the Holders of a majority of the Shares initially requesting
such registration, Holdings shall include in such registration the number of
Shares requested to be included therein that in the opinion of such underwriters
can be sold in an orderly manner within the price range of such offering, pro
rata among the respective Holders thereof on the basis of the amount of Shares
owned by each Holder requesting inclusion of Shares in such registration.

     2.2 Registration Expenses. All Registration Expenses (as defined in Section
8) for any registration requested pursuant to this Section 2 (including any
registration that is delayed or withdrawn) shall be paid by Holdings.

     2.3 Selection of Professionals. The Holders of a majority of the Shares
included in any Demand Registration shall have the right to select the
investment banker(s) and manager(s) to administer the offering; provided,
however, that if such Holders select an investment banker or manager that was
not one of the managers of the IPO, such investment banker or manager shall not
administer such offering if Holdings reasonably objects thereto. The Holders of
a majority of the Shares included in any Demand Registration shall have the
right to select one counsel for the

                                       2
<PAGE>

Selling Holders that is reasonably acceptable to Holdings. Holdings shall have
the right to select the financial printer and the solicitation and/or exchange
agent (if any) that are reasonably acceptable to the Holders of a Majority of
the Shares included in a Demand Registration. Holdings shall select its own
outside counsel and independent auditors.

     2.4 Third Person Shares. Holdings shall have the right to cause the
registration of securities for sale for the account of any Person (as defined in
Section 6(f)) (including Holdings) other than the Selling Holders (the "Third
Person Shares") in any registration of the Shares requested pursuant to this
Section 2 so long as the Third Person Shares are disposed of in accordance with
the intended method or methods of disposition requested pursuant to this Section
2; provided, however, that Holdings shall not have the right to cause the
registration of such securities of such other Persons if the registration
requested pursuant to this Section 2 is a Convertible Registration or an
Exchange Registration.

     If a Demand Registration in which Holdings proposes to include Third Person
Shares is an underwritten offering and the managing underwriters advise Holdings
in writing that in their opinion the number of Shares and Third Person Shares
requested to be included in such offering exceeds the number of Shares and Third
Person Shares that can be sold in an orderly manner in such offering within a
price range acceptable to the Holders of a majority of the Shares initially
requesting such registration, Holdings shall not include in such registration
any Third Person Shares unless all of the Shares initially requested to be
included therein are so included.

     2.5 Permitted Transferees. As used in this Agreement, "Permitted
Transferees" shall mean any transferee, whether direct or indirect, of Shares
designated by Continental (or a subsequent Holder) in a written notice to
Holdings as provided for in Section 9.7. Any Permitted Transferees of the Shares
shall be subject to and bound by all of the terms and conditions herein
applicable to Holders. The notice required by this Section 2.5 shall be signed
by both the transferring Holder and the Permitted Transferees so designated and
shall include an undertaking by the Permitted Transferees to comply with the
terms and conditions of this Agreement applicable to Holders.

     2.6 Shelf Registration; Convertible Registration; Exchange Registration.
With respect to any Demand Registration, the requesting Holders may request
Holdings to effect a registration of the Shares (a) under a registration
statement pursuant to Rule 415 under the Securities Act (or any successor rule)
(a "Shelf Registration"); (b) in connection with such Holders' registration
under the Securities Act of securities (the "Convertible Securities")
convertible into, exercisable for or otherwise related to the Shares (a
"Convertible Registration"); or (c) in connection with such Holders' offer to
exchange the Shares for any debt or equity securities of such Holders, a
subsidiary or affiliate thereof or any other Person (an "Exchange
Registration").

     2.7 SEC Form. Holdings shall use its best efforts to cause Demand
Registrations to be registered on Form S-3 (or any successor form), and if
Holdings is not then eligible under the Securities Act to use Form S-3, Demand
Registrations shall be registered on the form for which Holdings then qualifies.
If a Demand Registration is a Convertible Registration or an Exchange
Registration, Holdings shall effect such registration on the appropriate form
under the Securities

                                       3
<PAGE>

Act for such registrations. Holdings shall use its best efforts to become
eligible to use Form S-3 and, after becoming eligible to use Form S-3, shall use
its best efforts to remain so eligible.

     3. Piggyback Registrations.

     3.1 Notice and Registration. If Holdings proposes to register any of its
securities for public sale under the Securities Act (whether proposed to be
offered for sale by Holdings or any other Person), on a form and in a manner
which would permit registration of the Shares for sale to the public under the
Securities Act (a "Piggyback Registration"), it will give prompt written notice
to the Holders of its intention to do so (provided that in no event shall such
notice be given less than 20 days prior to the proposed date of filing the
registration statement relating to such registrant), and upon the written
request of any or all of the Holders delivered to Holdings within 20 days after
the giving of any such notice (which request shall specify the Shares intended
to be disposed of by such Holders), Holdings will use its best efforts to
effect, in connection with the registration of such other securities, the
registration under the Securities Act of all of the Shares which Holdings has
been so requested to register by such Holders (which shall then become Selling
Holders), to the extent required to permit the disposition (in accordance with
the same method of disposition as Holdings proposes to use to dispose of the
other securities) of the Shares to be so registered; provided, however, that:

     (a) if, at any time after giving such written notice of its intention to
register any of its other securities and prior to the effective date of the
registration statement filed in connection with such registration, Holdings
shall determine for any reason not to register such other securities, Holdings
may, at its election, give written notice of such determination to the Selling
Holders (or, if prior to delivery of the Holders' written request described
above in this Section 3.1, the Holders) and thereupon Holdings shall be relieved
of its obligation to register such Shares in connection with the registration of
such other securities (but not from its obligation to pay Registration Expenses
to the extent incurred in connection therewith as provided in Section 3.3),
without prejudice, however, to the rights (if any) of any Selling Holders
immediately to request (subject to the terms and conditions of Section 2) that
such registration be effected as a registration under Section 2;

     (b) Holdings shall not be required to effect any registration of the Shares
under this Section 3 incidental to the registration of any of its securities in
connection with mergers, acquisitions, exchange offers, subscription offers,
dividend reinvestment plans or stock option or other employee benefit plans of
Holdings;

     (c) if a Piggyback Registration is an underwritten primary registration on
behalf of Holdings and the managing underwriters advise Holdings in writing that
in their opinion the number of securities requested to be included in such
registration exceeds the number that can be sold in such offering without
materially adversely affecting the marketability of the offering or the market
for the Common Stock, Holdings shall include in such registration (i) first, the
securities Holdings proposes to sell, (ii) second, the Shares requested to be
included in such registration, pro rata among the Holders of such Shares on the
basis of the number of Shares owned by each such Holder, and (iii) third, any
other securities requested to be included in such registration; and

                                       4
<PAGE>

     (d) if a Piggyback Registration is an underwritten secondary registration
on behalf of holders of Holdings' securities entitled to demand registration
thereof and the managing underwriters advise Holdings in writing that in their
opinion the number of securities requested to be included in such registration
exceeds the number that can be sold in such offering without materially
adversely affecting the marketability of the offering or the market for the
Common Stock, Holdings shall include in such registration (i) first, the
securities requested to be included therein by the holders requesting such
registration and the Shares requested to be included in such registration, pro
rata among the holders of such securities on the basis of the number of
securities owned by each such holder, and (ii) second, any other securities
requested to be included in such registration.

     No registration of the Shares effected under this Section 3 shall relieve
Holdings of its obligation to effect a registration of Shares pursuant to
Section 2.

     3.2 Selection of Professionals. If any Piggyback Registration is an
underwritten offering and any of the investment banker(s) or manager(s) selected
to administer the offering was not one of the managers of the IPO, such
investment banker or manager shall not administer such offering if the Holders
of a majority of the Shares included in such Piggyback Registration reasonably
object thereto. The Holders of a majority of the Shares included in any
Piggyback Registration shall have the right to select one counsel for the
Selling Holders. Holdings shall select its own outside counsel and independent
auditors.

     3.3 Registration Expenses. Holdings will pay all of the Registration
Expenses in connection with any registration pursuant to this Section.

     4. Registration Procedures.

     4.1 Registration and Qualification. If and whenever Holdings is required to
use its best efforts to effect the registration of any of the Shares under the
Securities Act as provided in Sections 2 and 3, including an underwritten
offering pursuant to a Shelf Registration, Holdings will as promptly as is
practicable:

     (a) prepare and file (provided, that in no event (other than as provided in
Section 2.1(b)) shall such registration statement be filed later than 45 days
following written notice of any Holder of a Demand Registration pursuant to
Section 2.1) with the SEC a registration statement with respect to such Shares
and use its best efforts to cause such registration statement to become
effective; provided that as far in advance as practicable before filing such
registration statement or any amendment thereto, Holdings will furnish to the
Selling Holders copies of reasonably complete drafts of all such documents
prepared to be filed (including exhibits), and any such Selling Holder shall
have the opportunity to object to any information contained therein and Holdings
will make corrections reasonably requested by such Holder with respect to such
information prior to filing any such registration statement or amendment;

     (b) except in the case of a Shelf Registration, Convertible Registration or
Exchange Registration, prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to

                                       5
<PAGE>

keep such registration statement effective and to comply with the provisions of
the Securities Act with respect to the disposition of all of the Shares until
the earlier of (i) such time as all of such Shares have been disposed of in
accordance with the intended methods of disposition set forth in such
registration statement or (ii) the expiration of nine months after such
registration statement becomes effective;

     (c) in the case of a Shelf Registration (but not including any Convertible
Registration), prepare and file with the SEC such amendments and supplements to
such registration statement and the prospectus used in connection therewith as
may be necessary to keep such registration statement effective and to comply
with the provisions of the Securities Act with respect to the disposition of all
Shares subject thereto for a period ending on the earlier of (i) 24 months after
the effective date of such registration statement and (ii) the date on which all
the Shares subject thereto have been sold pursuant to such registration
statement (the "Shelf Effective Period");

     (d) in the case of a Convertible Registration or an Exchange Registration,
prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be
necessary to keep such registration statement effective and to comply with the
provisions of the Securities Act with respect to the disposition of all of the
Shares subject thereto until such time as the rules, regulations and
requirements of the Securities Act and the terms of the Convertible Securities
no longer require such Shares to be registered under the Securities Act (the
"Convertible Effective Period");

     (e) furnish to the Selling Holders and to any underwriter of such Shares
such number of conformed copies of such registration statement and of each
amendment and supplement thereto (in each case including all exhibits and
documents incorporated by reference), such number of copies of the prospectus
included in such registration statement (including each preliminary prospectus
and any summary prospectus), in conformity with the requirements of the
Securities Act, such documents incorporated by reference in such registration
statement or prospectus, and such other documents as the Selling Holders or such
underwriter may reasonably request;

     (f) use its best efforts to register or qualify all of the Shares covered
by such registration statement under such other securities or blue sky laws of
such jurisdictions as the Selling Holders or any underwriter of such Shares
shall reasonably request, and do any and all other acts and things that may be
necessary or advisable to enable the Selling Holders or any underwriter to
consummate the disposition in such jurisdictions of the Shares covered by such
registration statement, except that Holdings shall not for any such purpose be
required to qualify generally to do business as a foreign corporation in any
jurisdiction where it is not so qualified, or to subject itself to taxation in
any such jurisdiction, or to consent to general service of process in any such
jurisdiction;

     (g) (i) furnish to the Selling Holders (and each underwriter, if any),
addressed to them, an opinion of counsel for Holdings and (ii) use its best
efforts to furnish to the Selling Holders, addressed to them, a "cold comfort"
letter signed by the independent public accountants who have certified Holdings'
financial statements included in such registration statement,

                                       6
<PAGE>

covering substantially the same matters with respect to such registration
statement (and the prospectus included therein) and, in the case of such
accountants' letter, with respect to events subsequent to the date of such
financial statements, as are customarily covered in opinions of issuer's counsel
and in accountants' letters delivered to underwriters in underwritten public
offerings of securities and such other matters as the Selling Holders may
reasonably request, in each case, in form and substance and as of the dates
reasonably satisfactory to the Selling Holders;

     (h) immediately notify the Selling Holders, at any time when a prospectus
relating to a registration pursuant to Section 2 or 3 is required to be
delivered under the Securities Act, of the happening of any event as a result of
which the prospectus included in such registration statement, as then in effect,
includes an untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading, and at
the request of the Selling Holders prepare and furnish to the Selling Holders as
soon as reasonably practicable following such request a reasonable number of
copies of a supplement to or an amendment of such prospectus as may be necessary
so that, as thereafter delivered to the purchasers of such Shares, such
prospectus shall not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they are made, not
misleading;

     (i) permit any Selling Holder, which in such Selling Holder's sole and
exclusive judgment, might reasonably be deemed to be an underwriter or a
controlling person of Holdings, to participate in the preparation of such
registration or comparable statement and to require the insertion therein of
material, furnished to Holdings in writing, which in the reasonable judgment of
such Holder and its counsel should be included;

     (j) to make reasonably available members of management of Holdings, as
selected by the Holders of a majority of the Shares included in such
registration, for assistance in the selling effort relating to the Shares
covered by such registration, including, but not limited to, the participation
of such members of Holdings' management in road show presentations;

     (k) in the event of the issuance of any stop order suspending the
effectiveness of a registration statement, or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of
any securities included in such registration statement for sale in any
jurisdiction, Holdings shall use it best efforts promptly to obtain the
withdrawal of such order;

     (l) use its best efforts to cause Shares covered by such registration
statement to be registered with or approved by such other government agencies or
authorities as may be necessary to enable the sellers thereof to consummate the
disposition of such Shares;

     (m) otherwise use its best efforts to comply with all applicable rules and
regulations of the SEC, including the Securities Act and the Securities Exchange
Act of 1934, as amended (the "Exchange Act") and the rules and regulations
promulgated thereunder, and make available to its security holders, as soon as
reasonably practicable (but not more than fifteen (15) months) after

                                       7
<PAGE>

the effective date of the registration statement, an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act and Rule 158
promulgated thereunder;

     (n) enter into such agreements and take such other actions as a majority of
the Selling Holders shall reasonably request in order to expedite or facilitate
the disposition of such Shares; and

     (o) immediately notify each Selling Holder:

          (i) when such registration statement or any prospectus used in
     connection therewith, or any amendment or supplement thereto, has been
     filed and, with respect to such registration statement or any
     post-effective amendment thereto, when the same has become effective;

          (ii) of any written comments from the SEC with respect to any filing
     referred to in clause (a) and of any written request by the SEC for
     amendments or supplements to such registration statement or prospectus;

          (iii) of the notification to Holdings by the SEC of its initiation of
     any proceeding with respect to, or of the issuance by the SEC of, any stop
     order suspending the effectiveness of such registration statement; and

          (iv) of the receipt by Holdings of any notification with respect to
     the suspension of the qualification of any Shares for sale under the
     applicable securities or blue sky laws of any jurisdiction.

     Holdings may require the Selling Holders to furnish Holdings with such
information regarding the Selling Holders and the distribution of such Shares as
Holdings may from time to time request in writing, which is required by law, the
SEC or any securities exchange or interdealer quotation system on which any
shares of Common Stock are then listed or quoted for trading in connection with
any registration.

     4.2 Underwriting. If requested by the underwriters for any underwritten
offering in connection with a registration requested hereunder (including any
registration under Section 3 which involves, in whole or in part, an
underwritten offering), Holdings will enter into an underwriting agreement with
such underwriters for such offering, such agreement to contain such
representations and warranties by Holdings and such other terms and provisions
as are customarily contained in underwriting agreements with respect to
secondary distributions, including, without limitation, indemnities and
contribution to the effect and to the extent provided in Section 6 and the
provision of opinions of counsel and accountants' letters to the effect and to
the extent provided in Section 4.1(g). Holdings may require that the Shares
requested to be registered pursuant to Section 3 be included in such
underwriting on the same terms and conditions as shall be applicable to the
other securities being sold through underwriters under such registration;
provided, however, that no Selling Holder shall be required to make any
representations or warranties to Holdings or the underwriters (other than
representations and warranties regarding such Holder and such Holder's intended
method of distribution) or to

                                       8
<PAGE>

undertake any indemnification obligations to Holdings or the underwriters with
respect thereto, except as otherwise provided in Section 6 hereof. The Selling
Holders shall be parties to any such underwriting agreement, and the
representations and warranties by, and the other agreements on the part of,
Holdings to and for the benefit of such underwriters shall also be made to and
for the benefit of such Selling Holders.

     4.3 Blackout Periods for Shelf Registrations.

     (a) At any time when a Shelf Registration effected pursuant to Section 2
relating to the Shares is effective, upon written notice from Holdings to the
Selling Holders that Holdings determines in its good faith judgment that the
Selling Holders' sale of the Shares pursuant to the Shelf Registration would
require disclosure of material information which Holdings has a bona fide
business purpose for preserving as confidential and the disclosure of which
would have a material adverse effect on Holdings (an "Information Blackout"),
the Selling Holders shall suspend sales of the Shares pursuant to such Shelf
Registration until the earlier of (i) one day following the date upon which such
material information is disclosed to the public or ceases to be material, (ii)
60 days after Holdings makes such good faith determination or (iii) such time as
Holdings notifies the Selling Holders that sales pursuant to such Shelf
Registration may be resumed (the number of days from such suspension of sales of
the Selling Holders until the day when such sales may be resumed hereunder is
hereinafter called a "Sales Blackout Period").

     (b) If there is an Information Blackout and the Selling Holders do not
notify Holdings in writing of their desire to cancel such Shelf Registration,
the period set forth in Section 4.1(c)(i) shall be extended for a number of days
equal to the number of days in the Sales Blackout Period.

     4.4 Listing. In connection with the registration of any offering of the
Shares pursuant to this Agreement, Holdings agrees to use its best efforts to
effect the listing or inclusion of such Shares on any securities exchange or
interdealer quotation system on which any shares of the Common Stock are then
listed or included or otherwise facilitate the public trading of such Shares.

     4.5 Holdback Agreements.

     (a) Holdings shall not effect any public sale or distribution of its equity
securities, or any securities convertible into or exchangeable or exercisable
for such securities, during the seven days prior to and during the 90-day period
beginning on the effective date of any registration statement in connection with
a Demand Registration (other than a Shelf Registration) or a Piggyback
Registration, except pursuant to registrations on Form S-8 or any successor form
or unless the underwriters managing any such public offering otherwise agree.

     (b) If any Holders of Shares notify Holdings in writing that they intend to
effect an underwritten sale of Shares registered pursuant to a Shelf
Registration pursuant to Section 2 hereof, Holdings shall not effect any public
sale or distribution of its equity securities, or any securities convertible
into or exchangeable or exercisable for its equity securities, during the seven
days prior to and during the 90-day period beginning on the date such notice is
received,

                                       9
<PAGE>

except pursuant to registrations on Form S-8 or any successor form or unless the
underwriters managing any such public offering otherwise agree.

     (c) If Holdings completes an underwritten registration with respect to any
of its securities (whether offered for sale by Holdings or any other Person) on
a form and in a manner that would have permitted registration and sale of the
Shares, regardless of whether any Holder actually elected to participate in such
registration, each Holder shall not effect any public sales or distributions of
equity securities of Holdings or any securities convertible into or exchangeable
or exercisable for such securities other than pursuant to such registration
until the termination of the holdback period required from Holdings by any
underwriters in connection with such previous registration, which shall not be
longer than 90 days from the effective date of such registration.

     4.6 Rule 144. Holdings will file the reports required to be filed by it
under the Securities Act and the Exchange Act and the rules and regulations
adopted by the SEC thereunder (or, if Holdings is not required to file such
reports, will, upon the request of the Holders, make publicly available other
information) and will take such further action as the Holders may reasonably
request, all to the extent required from time to time to enable the Holders to
sell Shares without registration under the Securities Act within the limitation
of the exemptions provided by (i) Rule 144 under the Securities Act, as such
rule may be amended from time to time or (ii) any similar rule or regulation
hereafter adopted by the SEC. Upon the reasonable request of the Holders,
Holdings will deliver to such parties a written statement as to whether it has
complied with such requirements and will, at its expense, forthwith upon the
request of any such Holder, deliver to such Holder a certificate, signed by
Holdings' principal financial officer, stating (a) Holdings' name, address and
telephone number (including area code), (b) Holdings' Internal Revenue Service
identification number, (c) Holdings' SEC file number, (d) the number of shares
of each class of capital stock outstanding as shown by the most recent report or
statement published by Holdings, and (e) whether Holdings has filed the reports
required to be filed under the Exchange Act for a period of at least ninety (90)
days prior to the date of such certificate and in addition has filed the most
recent annual report required to be filed thereunder.

     5. Preparation; Reasonable Investigation. In connection with the
preparation and filing of each registration statement registering the Shares
under the Securities Act and each sale of the Shares thereunder, Holdings will
give the Selling Holders and the underwriters, if any, and their respective
counsel and accountants, access to its financial and other records, pertinent
corporate documents and properties of Holdings and such opportunities to discuss
the business of Holdings with its officers and the independent public
accountants who have certified its financial statements as shall be necessary,
in the opinion of the Selling Holders and such underwriters or their respective
counsel, to conduct a reasonable investigation within the meaning of the
Securities Act.

     6. Indemnification and Contribution.

     (a) In the event of any registration of any of the Shares hereunder,
Holdings will indemnify and hold harmless each of the Selling Holders, each of
their respective directors,

                                       10
<PAGE>

officers, employees and agents, and each Person, if any, who controls each such
Selling Holder within the meaning of the Securities Act (collectively, the
"Covered Persons") against any losses, claims, damages, liabilities and
expenses, joint or several, to which such Person may be subject under the
Securities Act or otherwise insofar as such losses, claims, damages, liabilities
or expenses (or actions or proceedings in respect thereof) arise out of or are
based upon (i) any untrue statement or alleged untrue statement of any material
fact contained in any related registration statement filed under the Securities
Act, any preliminary prospectus or final prospectus included therein, or any
amendment or supplement thereto, or any document incorporated by reference
therein, or (ii) any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, and Holdings will reimburse each such Covered Person, as
incurred, for any legal or any other expenses reasonably incurred by such
Covered Person in connection with investigating or defending any such loss,
claim, liability, action or proceeding; provided, however, that Holdings shall
not be liable in any such case to the extent that any such loss, claim, damage,
liability (or action or proceeding in respect thereof) or expense arises out of
or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in such registration statement, any such preliminary
prospectus or final prospectus, amendment or supplement in reliance upon and in
conformity with written information furnished to Holdings by a Selling Holder
specifically for use in the preparation thereof. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of
any such Covered Person and shall survive the transfer of such securities by the
Selling Holders. Holdings shall also indemnify each other Person who
participates (including as an underwriter) in the offering or sale of Shares,
their officers and directors and each other person, if any, who controls any
such participating Person within the meaning of the Securities Act to the same
extent as provided above with respect to the Covered Persons.

     (b) Each of the Selling Holders, by virtue of exercising its respective
registration rights hereunder, agrees and undertakes to enter into customary
indemnification arrangements to indemnify and hold harmless (in the same manner
and to the same extent as set forth in clause (a) of this Section 6) Holdings,
its directors and officers, each Person who participates as an underwriter in
the offering or sale of such securities, each officer and director of each
underwriter, and each Person, if any, who controls Holdings or any such
underwriter within the meaning of the Securities Act, with respect to any
statement in or omission from such registration statement, any preliminary
prospectus or final prospectus included therein, or any amendment or supplement
thereto, if such statement or omission is contained in written information
furnished by such Selling Holder to Holdings specifically for inclusion in such
registration statement or prospectus; provided, however, that the obligation to
indemnify shall be individual, not joint and several, for each Selling Holder
and shall be limited to the net amount of proceeds received by such Selling
Holder from the sale of Shares pursuant to such registration statement. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of Holdings or any such director, officer or Person and
shall survive the transfer of the registered securities by the Selling Holders.

     (c) Any Person entitled to indemnification hereunder shall (i) give prompt
written notice to the indemnifying party of any claim with respect to which it
seeks indemnification (provided, however, that the failure to give prompt notice
shall not impair any Person's rights to

                                       11
<PAGE>

indemnification hereunder to the extent such failure has not prejudiced the
indemnifying party) and (ii) unless in such indemnified party's reasonable
judgment a conflict of interest between such indemnified and indemnifying
parties may exist with respect to such claim, permit such indemnifying party to
assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party. If such defense is assumed, the indemnifying party shall not
be subject to any liability for any settlement made by the indemnified party
without its consent (but such consent shall not be unreasonably withheld). An
indemnifying party who is not entitled to, or elects not to, assume the defense
of a claim shall not be obligated to pay the fees and expenses of more than one
counsel for all parties indemnified by such indemnifying party with respect to
such claim, unless in the reasonable judgment of any indemnified party a
conflict of interest may exist between such indemnified party and any other of
such indemnified parties with respect to such claim. No indemnifying party
shall, without the consent of the indemnified party, consent to entry of any
judgment or enter into any settlement that (i) does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a release from all liability in respect of such claim or
litigation or (ii) would impose injunctive relief on such indemnified party. The
indemnification required by this Section 6 shall be made by periodic payments of
the amount thereof during the course of the investigation or defense, promptly
as and when bills are received or expense, loss, damage or liability is
incurred.

     (d) If for any reason (other than the reasons expressly specified in this
Section 6) the foregoing indemnity and reimbursement is unavailable or is
insufficient to hold harmless an indemnified party under paragraphs (a) and (b)
of this Section 6, then each indemnifying party shall contribute to the amount
paid or payable by such indemnified party as a result of any loss, claim,
damage, liability or expense (or actions or proceedings in respect thereof) in
such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and the indemnified party on the other. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the
indemnifying party or the indemnified party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission. If, however, the allocation provided in the second
preceding sentence is not permitted by applicable law, or if the allocation
provided in the second preceding sentence provides a lesser sum to the
indemnified party than the amount hereinafter calculated, then each indemnifying
party shall contribute to the amount paid or payable by such indemnified party
in such proportion as is appropriate to reflect not only such relative fault but
also the relative benefits to the indemnifying party and the indemnified party
as well as any other relevant equitable considerations. The parties agree that
it would not be just and equitable if contributions pursuant to this Section
6(d) were to be determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to in the preceding sentences of this Section 6(d). Notwithstanding anything in
this Section 6(d) to the contrary, no indemnifying party (other than Holdings)
shall be required pursuant to this Section 6(d) to contribute any amount in
excess of the net proceeds received by such indemnifying party from the sale of
Shares in the offering to which the losses, claims, damages, liabilities or
expenses of the indemnified parties relate. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

                                       12
<PAGE>

     (e) Indemnification and contribution similar to that specified in the
preceding subdivisions of this Section 6 (with appropriate modifications) shall
be given by Holdings and the Selling Holders with respect to any required
registration or other qualification of such Shares under any federal or state
law or regulation of governmental authority other than the Securities Act.

     (f) "Person" means an individual, partnership, limited liability company,
corporation, joint stock company, trust, estate, joint venture, association or
unincorporated organization, any other form of business or professional entity
or any governmental entity or any department, agency or political subdivision
thereof.

     7. Benefits and Termination of Registration Rights. The Holders may
exercise the registration rights granted hereunder in such manner and
proportions as they shall agree among themselves. The registration rights
hereunder shall cease to apply to any particular Shares and such securities
shall cease to be Shares when: (a) a registration statement with respect to the
sale of such Shares shall have become effective under the Securities Act and
such Shares shall have been disposed of in accordance with such registration
statement; (b) such Shares shall have been sold to the public pursuant to Rule
144 under the Securities Act (or any successor provision); (c) such Shares shall
have been otherwise transferred, new certificates for them not bearing a legend
restricting further transfer shall have been delivered by Holdings and
subsequent public distribution of them shall not require registration or
qualification of them under the Securities Act or any similar state law then in
force; (d) such Shares shall have ceased to be outstanding or (e) in the case of
Shares held by a Permitted Transferee, when such Shares become eligible for sale
pursuant to Rule 144(k) under the Securities Act (or any successor provision).

     8. Registration Expenses. As used in this Agreement, the term "Registration
Expenses" means all expenses incident to Holdings' performance of or compliance
with the registration and listing requirements set forth in this Agreement
including, without limitation, the following: (a) all registration and filing
fees; (b) the fees, disbursements and expenses of Holdings' counsel and
accountants in connection with the registration of the Shares to be disposed of
under the Securities Act; (c) the fees, disbursements and expenses of the
Selling Holders' counsel and advisors in connection with the registration of the
Shares to be disposed of under the Securities Act; (d) all expenses in
connection with the preparation, printing and filing of the registration
statement, any preliminary prospectus or final prospectus, any other offering
document and amendments and supplements thereto and the mailing and delivering
of copies thereof to the underwriters and dealers and directly to
securityholders in the case of an Exchange Registration; (e) the cost of
printing and producing any agreements among underwriters, underwriting
agreements, and blue sky or legal investment memoranda, any selling agreements
and any amendments thereto or other documents in connection with the offering,
sale or delivery of the Shares to be disposed of; (f) all expenses in connection
with the qualification of the Shares to be disposed of for offering and sale
under state securities laws, including the fees and disbursements of counsel for
the underwriters in connection with such qualification and in connection with
any blue sky and legal investment surveys; (g) the filing fees incident to
securing any required review by the New York Stock Exchange or the Nasdaq
National Market and any other securities exchange or interdealer quotation
system on which the Common Stock is

                                       13
<PAGE>

then traded or listed of the terms of the sale of the Shares to be disposed of
and the trading or listing of all such Shares on each such exchange or system;
(h) the costs of preparing stock certificates; (i) the costs and charges of
Holdings' transfer agent and registrar; and (j) the fees and disbursements of
any custodians, solicitation agents, information agents and/or exchange agents.
Registration Expenses shall not include underwriting discounts and underwriters'
commissions attributable to the Shares being registered for sale on behalf of
the Selling Holders, which shall be paid by the Selling Holders.

     9. Miscellaneous.

     9.1 Holdings Equity Offerings.

         (a) Until the earlier of the first anniversary of consummation of the
IPO and the date upon which Continental and its controlled affiliates own less
than 20% of the total number of shares of Common Stock outstanding, Holdings
shall not, and shall not permit its subsidiaries, without the prior written
consent of Continental, issue or sell, or enter into any contract to issue or
sell, any capital stock of Holdings or any of its subsidiaries, other than any
such issuances or sales in connection with the employee benefits plans of
Holdings or any of its subsidiaries.

         (b) If between the first anniversary and the second anniversary of
consummation of the IPO, Holdings or any of its subsidiaries issues or sells any
capital stock of Holdings or any of its subsidiaries, other than any such
issuances or sales in connection with the employee benefits plans of Holdings or
any of its subsidiaries, Holdings shall be required to cause the "Maker" of that
certain Promissory Note, dated as of March 31, 2001, made by Continental
Express, Inc. in favor of Continental (the "Note") to make a principal payment
on the Note (the "Principal Payment") in an amount equal to 75% of the net
proceeds, if any, received by Holdings from such sale (after deducting any
underwriters' discounts and commissions and reasonable expenses directly related
to such sale) on the closing date of such sale. Notwithstanding the foregoing,
Holdings shall have no obligation to cause the Maker to make the Principal
Payment with respect to any such sale of capital stock if immediately prior to
the time of consummation of such sale Continental and its controlled affiliates
own less than 20% of the total number of shares of Common Stock outstanding.

     9.2 No Inconsistent Agreements. Holdings shall not on or after the date of
this Agreement enter into any agreement with respect to its securities that
violates or subordinates the rights expressly granted to the Holders in this
Agreement. Holdings shall not take any action, or permit any change to occur,
with respect to its securities which would adversely affect the ability of the
Holders of Shares to include such Shares in a registration undertaken pursuant
to this Agreement.

     9.3 Complete Agreement. Except as otherwise set forth in this Agreement,
this 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.

                                       14
<PAGE>

     9.4 Authority. Each of the parties hereto represents to the other that (i)
it has the corporate power and authority to execute, deliver and perform this
Agreement, (ii) the execution, delivery and performance of this Agreement by it
has been duly authorized by all necessary corporate action, (iii) it has duly
and validly executed and delivered this Agreement, and (iv) this Agreement is a
legal, valid and binding obligation, enforceable against it in accordance with
its terms subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors' rights generally and
general equity principles.

     9.5 Assignment. This Agreement shall be binding on and inure to the benefit
of and be enforceable by the parties hereto and with respect to Holdings, its
respective successors and assigns, and any Permitted Transferees.

     9.6 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas (other than the laws regarding
conflicts of laws) as to all matters of validity, construction, effect,
performance and remedies.

     9.7 Notices. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given
upon: (a) a transmitter's confirmation of a receipt of a facsimile transmission
(but only if followed by a 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 any other Holder, the address indicated for such Holder in Holdings'
stock transfer records with copies, so long as Continental owns any Shares, to
Continental as provided above.

                                       15
<PAGE>

     If to Holdings:

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

     Any party may change its address for the purpose of this Section 9.7 by
giving the other party written notice of its new address in the manner set forth
above.

     9.8 Severability. 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.

     9.9 Remedies. Each of Continental and Holdings shall be entitled to enforce
its rights under this Agreement specifically, to recover damages and costs
(including reasonable attorneys' fees) caused by any breach of any provision of
this Agreement and to exercise all other rights existing in its favor. Each of
Continental and Holdings acknowledges and agrees that under certain
circumstances the breach by Continental or any of its affiliates or Holdings or
any of its affiliates of a term or provision of this Agreement will materially
and irreparably harm the other party, that money damages will accordingly not be
an adequate remedy for such breach and that the non-defaulting party, in its
sole discretion and in addition to its rights under this Agreement and any other
remedies it 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 Agreement.

     9.10 Waivers. The observance of any term of this 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 a writing signed by the party against whom the
existence of such waiver is asserted. Unless otherwise expressly provided in
this Agreement, no delay or omission on the part of any party in exercising any
right or privilege under this Agreement shall operate as a waiver thereof, nor
shall any waiver on the part of any party of any right or privilege under this
Agreement operate as a waiver of any other right or privilege under this
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 Agreement. No failure by either 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.

                                       16
<PAGE>

     9.11 Amendment and Modification. This Agreement may not be amended or
modified in any respect except by a written agreement signed by Holdings,
Continental (so long as Continental owns any Shares) and the Holders of a
majority of the Shares.

     9.12 Section and Paragraph Headings. The section and paragraph headings in
this Agreement are for reference purposes only, are not part of the agreement of
the parties hereto, and shall not affect the meaning or interpretation of this
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 Agreement. The words
"hereof," "herein" and "hereunder" and words of similar import referring to this
Agreement refer to this Agreement as a whole and not to any particular provision
of this Agreement. Whenever the words "include," "includes" or "including" are
used in this Agreement, unless otherwise specifically provided, they shall be
deemed to be followed by the words "without limitation." This 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.

     9.13 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. This Agreement may be
executed by facsimile signature.

                                       17
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the date and year first written above.

                                       CONTINENTAL AIRLINES, INC.

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

                                       EXPRESSJET HOLDINGS, INC.

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

                                       18

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