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                                                                    EXHIBIT 10.5

                          REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this "Agreement"), is made and entered
into as of ________ __, 2001, 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 Class A Common Stock, par value $.01 per share ("Class A
Common Stock");

     WHEREAS, Continental and Holdings desire to make certain arrangements to
provide Continental with registration rights with respect to any shares of Class
A Common Stock or Class B Common Stock, par value $.01 per share ("Class B
Common Stock" and collectively with the Class A Common Stock, "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

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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 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

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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 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 9.6. 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

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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 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

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owned by each such Holder, and (iii) third, any other securities requested to be
included in such registration; and

     (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;

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     (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 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;

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     (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, 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;

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     (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 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

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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 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.

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     (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, 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.

     Section 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.

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     Section 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, 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

                                       11
<PAGE>   12

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 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

                                       12
<PAGE>   13

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.

     (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.

     Section 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).

     Section 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

                                       13
<PAGE>   14

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 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.

     Section 9. Miscellaneous.

     9.1 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.

     9.2 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.

     9.3 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.

     9.4 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.

     9.5 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.

                                       14
<PAGE>   15

     9.6 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.

     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 9.6 by
giving the other party written notice of its new address in the manner set forth
above.

     9.7 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.

     9.8 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

                                       15
<PAGE>   16

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.

     9.9 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.

     9.10 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.

     9.11 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.

     9.12 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.

                                       16
<PAGE>   17

     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:
                                             -----------------------------------

                                       17<PAGE>   1

                                                                    EXHIBIT 10.6

                     EMPLOYEE BENEFITS SEPARATION AGREEMENT

                                  by and among

                           CONTINENTAL AIRLINES, INC.,

                            EXPRESSJET HOLDINGS, INC.

                                       and

                            EXPRESSJET AIRLINES, INC.

                         Dated as of _____________, 2001

<PAGE>   2
                     EMPLOYEE BENEFITS SEPARATION AGREEMENT

                                    RECITALS

         This EMPLOYEE BENEFITS SEPARATION AGREEMENT (this "Employee Benefits
Separation Agreement"), dated as of _________________, 2001, is by and among
Continental Airlines, Inc., a Delaware corporation ("Continental"), ExpressJet
Holdings, Inc., a Delaware corporation and a wholly owned subsidiary of
Continental ("ExpressJet Holdings"), and ExpressJet Airlines, Inc., a Delaware
corporation and a wholly owned subsidiary of ExpressJet Holdings ("ExpressJet
Airlines").

         WHEREAS, Continental, ExpressJet Holdings and ExpressJet Airlines
desire to enter into this Employee Benefits Separation Agreement with respect to
implementation of matters concerning employees and the separation of employee
benefits in connection with the contemplated Initial Public Offering and
subsequent divesture and other matters set forth in the Initial Public Offering
and Distribution Agreement by and between Continental and ExpressJet Holdings
dated as of _______________, 2001(the "IPO Agreement");

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

                                   ARTICLE I
                                  DEFINITIONS

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

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

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

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

         1.4  CAPACITY PURCHASE PERIOD means the period of time during which
that certain Capacity Purchase Agreement dated as of January 1, 2001, among
Continental, ExpressJet Holdings, and ExpressJet Airlines is in effect.

         1.5  CARP means the Continental Retirement Plan.

                                      -1-
<PAGE>   3
         1.6  COBRA means the continuation coverage requirements for "group
health plans" under Title X of the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended, and as codified in Section 4980B of the Code and
Sections 601 through 608 of ERISA.

         1.7  COBRA CONTINUEE is defined in Section 5.4(a).

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

         1.9  CONTINENTAL has the meaning set forth in the Preamble.

         1.10  CONTINENTAL EXECUTIVE BENEFIT PLANS means the following executive
benefit plans, programs and arrangements maintained by Continental for the
benefit of executive employees and former executive employees of Continental or
a Continental Affiliate: the Turbo Program, the Continental Management Bonus
Program, the Long Term Incentive Program, and the Retention Program.

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

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

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

         1.14  EXCLUSIVITY ENDING DATE means the day immediately preceding the
earlier of (a) January 1, 2005, and (b) the date on which Continental is free to
utilize regional jet capacity of a carrier other than ExpressJet Airlines in or
out of Continental's hubs.

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

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

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

         1.18  FLIGHT PASS PRIVILEGES, when immediately preceded by
"Continental," means space-available flight privileges and vacation and buddy
passes on each airline operated by

                                      -2-
<PAGE>   4
Continental or a Continental Affiliate. When immediately preceded by "Holdings,"
Flight Pass Privileges means space-available flight privileges and vacation and
buddy passes on each airline operated by Holdings or a Holdings Affiliate.

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

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

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

         1.22  HIPAA BENEFICIARY is defined in Section 5.4(b).

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

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

         1.25  HOLDINGS means ExpressJet Holdings and ExpressJet Airlines,
collectively.

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

         1.27  HOLDINGS 2001 STOCK INCENTIVE PLAN means the stock incentive plan
to be established by ExpressJet Holdings pursuant to Section 2.3.

         1.28  HOLDINGS ADMINISTRATIVE EMPLOYEES is defined in Section 8.1.

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

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

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

         1.32  INDEPENDENCE DATE means the Distribution Date.

                                      -3-
<PAGE>   5
         1.33  INTERCOMPANY NOTE refers to that certain promissory note dated
March 31, 2001, by Continental Express, Inc. (the predecessor to ExpressJet
Airlines) in favor of Continental in the original principal amount of
$552,312,000.00.

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

         1.35  IPO DATE means the date of consummation of the Initial Public
Offering.

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

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

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

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

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

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

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

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

         1.44  PERFECT ATTENDANCE PROGRAM, when immediately preceded by
"Continental," means the Continental Airlines, Inc. Perfect Attendance Program.
When immediately preceded by "Holdings," Perfect Attendance Program means the
perfect attendance program to be established by Holdings pursuant to Section
2.3.

                                      -4-
<PAGE>   6

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

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

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

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

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

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

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

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

         1.53  VEBA, when immediately preceded by "Continental," means the trust
established pursuant to the Trust Agreement Made as of the 12th Day of November,
1999 Between Continental Airlines, Inc. and Frank Russell Trust Company or any
successor trust established on behalf of the Continental Pilot LTD Plan. When
immediately preceded by "Holdings," VEBA means the corresponding trust to be
established by Holdings pursuant to Section 5.2(a).

         1.54  WELFARE PLANS, when immediately preceded by "Continental," means
the employee welfare benefit plans, as defined in Section 3(1) of ERISA,
sponsored by Continental or a Continental Affiliate and any trust associated
with one or more of such plans. When

                                      -5-
<PAGE>   7
immediately preceded by "Holdings," Welfare Plans means the employee welfare
benefit plans and associated trusts, if any, to be established by Holdings
pursuant to Section 2.3 that correspond to the respective Continental Welfare
Plans.

                                   ARTICLE II
                               GENERAL PRINCIPLES

         2.1  ASSUMPTION OF LIABILITIES. Except as otherwise provided herein and
except with respect to the extent a Liability is satisfied through the
Continental Plans and/or the Holdings Plans, notwithstanding any other provision
in the IPO Agreement to the contrary, (a) all Liabilities related to employees
(or any alleged employment relationships), independent contractors, consultants,
or advisers, of Holdings Businesses arising from events occurring either before
or after the IPO Date shall be the responsibility of Holdings, including
Liabilities incurred by reason of the transactions contemplated under the IPO
Agreement, but excluding (i) any losses for which a party is entitled to
indemnification pursuant to Article 6 of the IPO Agreement, and (ii)
Continental's obligations pursuant to Section 5.1 of this Employee Benefits
Separation Agreement, and (b) Holdings hereby indemnifies and holds Continental
harmless from and against any all such Liabilities described in the foregoing
clause (a).

         2.2  HOLDINGS PARTICIPATION IN CONTINENTAL PLANS.

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

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

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

                                      -6-
<PAGE>   8

         2.3  ESTABLISHMENT OF HOLDINGS PLANS. Subject to the terms and
conditions set forth in this Employee Benefits Separation Agreement, Holdings
shall use reasonable best efforts to adopt or cause to be adopted for the
benefit of the Holdings Employees, (a) effective as of the IPO Date, the
Holdings 2001 Stock Incentive Plan, (b) effective as of January 1, 2002, the
Holdings Management Bonus Program, the Holdings Profit Sharing Plan, and the
Holdings Perfect Attendance Program, and (c) effective as of the Independence
Date, the Holdings 401(k) Savings Plan, the Holdings On-Time Bonus Program, the
Holdings Flexible Benefits Plan and the Holdings Welfare Plans. Except as
otherwise provided by any collective bargaining agreements, Holdings shall use
reasonable best efforts to cause the Holdings Flexible Benefits Plan and the
Holdings Welfare Plans as in effect as of the Independence Date to be
substantially similar in all material respects to the corresponding Continental
Plans in effect Immediately preceding the Independence Date.

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

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

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

                                  ARTICLE III
                             DEFINED BENEFIT PLANS

         3.1  CARP.

             (a) CESSATION OF CREDITED SERVICE. No participant in the CARP shall
receive credit under such plan for purposes of eligibility, vesting, credited
service, or benefit accrual on account of service performed as an employee of
Holdings or any Holdings Affiliate after the Independence Date. Notwithstanding
the foregoing, solely with respect to any participant in the CARP who is
employed by Holdings or a Holdings Affiliate as of the Independence Date,
Continental shall use reasonable best efforts to cause the CARP to allow such
individual to be eligible for a lump sum distribution under the CARP in a manner
consistent with the age and service requirements of the CARP.

                                      -7-
<PAGE>   9

              (b) VESTING. Effective Immediately preceding the Independence
Date, Continental shall use reasonable best efforts to cause the CARP to treat
each participant in the CARP who is employed by Holdings or a Holdings Affiliate
as of the Independence Date to become fully vested in such participant's accrued
benefit under the CARP.

              (c) HOLDINGS REIMBURSEMENT. From time to time as determined by
Continental, Holdings shall reimburse Continental for (1) the cost of benefits
accruing under the CARP on behalf of Holdings Employees during the period of
time from the IPO Date to the Independence Date to the extent that such benefit
accrual is attributable to credited service arising from employment with
Holdings or a Holdings Affiliate during such period of time and (2) the cost
associated with the lump sum eligibility and accelerated vesting described in
paragraphs 3.1(a) and (b). The cost of the items described in the preceding
sentence shall be computed and certified by the Enrolled Actuary for the CARP
(whose determination shall be binding and conclusive on the parties hereto), and
such cost as computed (together with the cost of such actuarial computations)
shall be borne solely by Holdings. Holdings may, at its election, reimburse
Continental for such cost by increasing the amount payable by Holdings to
Continental under the InterCompany Note.

                                   ARTICLE IV
                            DEFINED CONTRIBUTION PLAN

         4.1  CONTINENTAL 401(k) SAVINGS PLAN. For the period preceding the
Independence Date, Holdings shall remit directly to the trustee of the
Continental 401(k) Savings Plan, (a) the contributions to such plan made by or
on behalf of the employees of Holdings and the Holdings Affiliates and (b) the
loan repayments made by such employees with respect to their outstanding loans
under the Continental 401(k) Savings Plan.

         4.2  HOLDINGS 401(k) SAVINGS PLAN. Effective as of the Independence
Date, Holdings shall use reasonable best efforts to adopt or cause to be adopted
a separate defined contribution plan for the benefit of eligible Holdings
Employees.

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

                                      -8-
<PAGE>   10
Section. Continental represents, covenants and agrees with respect to the
Continental 401(k) Savings Plan, and Holdings represents, covenants and agrees
with respect to the Holdings 401(k) Savings Plan, that, as of the date of the
transfer described in this Section, such plan will satisfy the requirements of
Sections 401(a), (k) and (m) of the Code.

                                   ARTICLE V
                            HEALTH AND WELFARE PLANS

         5.1  HOLDINGS PARTICIPATION IN CONTINENTAL WELFARE PLANS. Holdings and
the Holdings Affiliates shall continue to participate in a manner consistent
with past practice in the Continental Welfare Plans until Immediately preceding
the Independence Date. Holdings shall reimburse Continental for all costs with
respect to the participation of Holdings and any and all Holdings Affiliates in
the Continental Welfare Plans; provided, however, that with respect to medical,
dental, disability, life insurance, accidental death and dismemberment
insurance, and similar benefits, whether insured or self-funded, such costs
shall be billed on an allocable premium basis rather than on a claims made
basis. Effective Immediately preceding the Independence Date, Holdings shall
cease participation in all Continental Welfare Plans, and, effective as of the
Independence Date, Holdings shall use reasonable best efforts to cause eligible
Holdings Employees to commence participation in the Holdings Welfare Plans.
Claims for benefits by Holdings Employees arising out of occurrences on or
subsequent to the Independence Date shall be covered by the Holdings Welfare
Plans in accordance with the terms of such plans. Claims for benefits by
Holdings Employees arising out of occurrences prior to the Independence Date
shall be covered by the Continental Welfare Plans in accordance with the terms
of such plans; provided however, that Holdings shall be liable for any premiums,
payments and other costs with respect to such claims under the Continental
Welfare Plans. For this purpose, claims for medical, dental, prescription drug,
and vision benefits by Holdings Employees shall be considered to have occurred
on the date of purchase or the date service or treatment was rendered, as
applicable, (ii) claims for life insurance and accidental death and
dismemberment insurance benefits shall be considered to have occurred on the
date of death or the date the accident occurred, and (iii) claims for disability
benefits shall be considered to have occurred on the date the disability
occurred.

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

              (a) Effective as of the Independence Date, Holdings shall use
reasonable best efforts to establish, or shall use reasonable best efforts to
cause to be established, the Holdings VEBA for the purpose of funding long-term
disability benefits under the Holdings Pilot LTD Plan. Holdings shall use
reasonable best efforts to ensure such trust meets the requirements of Sections
419, 410A, 501(a) and 501(c)(9) of the Code.

              (b) At the time and in the manner set forth in paragraph 5.2(c)
below, Continental shall cause to be transferred to the Holdings VEBA a pro-rata
portion of the assets of the Continental VEBA Immediately preceding the
Independence Date in an amount equal to (i)

                                      -9-
<PAGE>   11
the total assets of the Continental VEBA as of such date multiplied by (ii) the
aggregate present value of future benefit obligations of the Continental Pilot
LTD Plan with respect to Holdings Employees as of such date divided by (iii) the
aggregate present value of the total future benefit obligations of the
Continental Pilot LTD Plan as of such date.

              (c) The present value of the benefit obligations pursuant to
paragraph 5.2(b) above shall be determined by the Enrolled Actuary for the
Continental VEBA (whose determinations shall be binding and conclusive on the
parties hereto) using methods and assumptions consistent with those used to
produce the Actuarial Report for the Continental Pilot LTD Plan dated December
31, 2000; provided, however, that the transfer pursuant to paragraph 5.2(b)
above shall be subject to the satisfaction of the requirements of applicable law
and any applicable governmental requirements as determined by the Enrolled
Actuary for the Continental VEBA. The transfer of assets shall take place as
soon as administratively practicable after the completion of the calculation and
compliance with applicable governmental requirements. The amount transferred
shall be determined as of Immediately preceding the Independence Date and shall
also include interest for the period beginning at such time and ending on the
day immediately preceding the date of the transfer based on the interest rate
used by the Enrolled Actuary for the Continental VEBA for determining the
present value of the benefit obligations pursuant to paragraph 5.2(b). The
assets shall be transferred in cash, securities, other property or a combination
thereof, as determined by Continental in its sole discretion.

              (d) Benefit payments to Holdings Employees in pay status shall
continue to be made from the Continental VEBA following the Independence Date
and until the date of the asset transfer described in paragraph 5.2(c) above.
Any such payments, adjusted for applicable interest, shall be deducted from the
amount required to be transferred to the Holdings VEBA pursuant to paragraph
5.2(b).

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

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

                                      -10-
<PAGE>   12

         5.4  COBRA AND HIPAA.

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

              (b) HIPAA CERTIFICATES OF CREDITABLE COVERAGE. For all periods
prior to the Independence Date, Continental shall be responsible for providing
certificates of creditable coverage as required under HIPAA regarding any
Continental Welfare Plan to any employee of Continental, Holdings, or their
Affiliates, or any dependent of such an employee (a "HIPAA Beneficiary").
Further, Continental shall provide certificates of creditable coverage regarding
any Continental Welfare Plan to any COBRA Continuee to whom Continental provides
continuation coverage in accordance with Section 5.4(a) at the time such
continuation coverage ceases, and upon request made by, or on behalf of, any
HIPAA Beneficiary, within twenty four (24) months after his or her coverage
under a Continental Health Plan ceases. As of the Independence Date, Holdings
shall be responsible for providing certificates of creditable coverage as
required under HIPAA under any Holdings Welfare Plan to any employee of Holdings
or a Holdings Affiliate, or any dependent of such employee.

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

                                      -11-

<PAGE>   13

or a Continental Affiliate, herby waives any right to seek workers' compensation
subrogation recovery from Holdings or any Holdings Plan or Holdings Affiliates
with respect to any workers' compensation claim made by an employee covered
under the workers' compensation programs of Continental.

         5.6  POST-DISTRIBUTION TRANSITIONAL ARRANGEMENTS.

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

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

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

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

                  (iv) To the extent that Holdings is unable, despite reasonable
best efforts, to achieve the foregoing provisions of this Section 5.6(a),
Holdings shall be solely responsible for any Liability associated therewith, and
Holdings may take any such steps as Holdings deems necessary or advisable in its
sole discretion.

              (b) OTHER POST-DISTRIBUTION TRANSITIONAL MATTERS.

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

                                      -12-
<PAGE>   14
immediately before the Independence Date remain in effect under the Holdings
Flexible Benefits Plan immediately after such transfer. If the aggregate amount
of the transferred account balances of Holdings Employees is negative, then
Holdings shall pay Continental the amount of such aggregate negative balance
promptly following such account balance transfer.

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

                  (iii) EXCHANGE OF HISTORICAL DATA. With respect to Holdings
Employees, after the Independence Date, both Continental and Holdings shall have
access to claims data configured on any applicable database or archives, and to
eligibility, disability, medical and demographic data configured on any
database, or archives, for all historical periods up to and including
eligibility, incurred claims and other data for purposes of administering the
medical and disability benefits of Continental and Holdings and their
Affiliates. Continental and Holdings shall cooperate (and shall cause their
respective Affiliates to cooperate) in the collection of claims, eligibility and
data during the period from the IPO Date to the time Immediately preceding the
Independence Date and share all such data where necessary.

                                   ARTICLE VI
                    INCENTIVE PROGRAMS AND EXECUTIVE BENEFITS

         6.1  CONTINENTAL EXECUTIVE BENEFIT PLANS. Notwithstanding the
provisions of Section 2.2, participation by Holdings Employees in the
Continental Executive Benefit Plans from and after the IPO Date shall be as
follows:

              (a) LIMITED CONTINUED PARTICIPATION. Holdings Employees who are
participants in the Continental Executive Benefit Plans as of the IPO Date shall
continue to participate, without interruption, in such plans through December
31, 2001. Continental shall use reasonable best efforts to cause its Chief
Executive Officer or the Committee, as applicable under the terms of the
particular Continental Executive Benefit Plan, to make a determination that
Holdings Employees shall not be eligible to receive awards under or otherwise
participate in the Continental Executive Benefit Plans after December 31, 2001,
and Continental shall provide affected Holdings Employees with a written notice
of such determination as soon as practicable after the IPO Date to the extent
such notice is required under the Continental Executive Benefit Plans. On or
before the IPO Date, Continental and Holdings shall use reasonable best efforts
to cause the Holdings Employees who are participants in the Long Term Incentive
Program as of such date to agree that they shall forfeit and receive no payments
with respect to awards under such plan for which the "Performance Period" (as
such term is defined in the Long Term Incentive Program) has not ended on or
before December 31, 2001. Notwithstanding the

                                      -13-
<PAGE>   15
preceding provisions of this paragraph, a Holdings Employee shall continue to be
eligible to participate in the Retention Program after December 31, 2001, with
respect to "Follow-up Investments" (as such term is defined in the Retention
Program) that relate to awards in which such employee has a vested interest as
of such date.

              (b) RESPONSIBILITY FOR PAYMENTS. Continental shall retain
liability for payments to Holdings Employees with respect to their awards under
the Retention Program. Holdings shall assume and be solely responsible for all
Liabilities (including the payment of plan benefits) to or relating to Holdings
Employees under the Turbo Program, the Long Term Incentive Program and the
Continental Management Bonus Program. All or any portion of the payments owed by
Holdings to Holdings Employees under the Turbo Program, the Long Term Incentive
Program and the Continental Management Bonus Program shall, at the election of
Holdings, be paid by Continental and added to the amount payable by Holdings
under the InterCompany Note.

         6.2  OTHER CONTINENTAL INCENTIVE PLANS

              (a) 1997 EMPLOYEE STOCK PURCHASE PLAN. Holdings and each Holdings
Affiliate, as applicable, shall continue as a Participating Company consistent
with past practice in Continental's 1997 Employee Stock Purchase Plan until
Immediately preceding the Independence Date. Effective as of the Independence
Date, such participation shall cease and all participating employees of Holdings
and the Holdings Affiliates shall automatically be deemed to have withdrawn from
such plan as of such date without further action by any employee.

              (b) CONTINENTAL PROFIT SHARING PLAN. Holdings and each Holdings
Affiliate, as applicable, shall continue as a Participating Company consistent
with past practice in the Continental Profit Sharing Plan through December 31,
2001. The participation in the Continental Profit Sharing Plan by Holdings and
each Holdings Affiliate that is a Participating Company in the Continental
Profit Sharing Plan shall cease effective as of January 1, 2002. Holdings shall
be liable for the full amount of any and all payments under the Continental
Profit Sharing Plan that are owed to any Holdings Employees in connection with
the plan participation described in the first sentence of this Section 6.2(b).
All or a portion of the payments owed by Holdings to Holdings Employees under
the Continental Profit Sharing Plan shall, at the election of Holdings, be paid
by Continental and added to the amount payable by Holdings under the
InterCompany Note. Effective as of January 1, 2002, Holdings shall use
reasonable best efforts to adopt or cause to be adopted the Holdings Profit
Sharing Plan for the benefit of eligible Holdings Employees. The terms and
conditions of the Holdings Profit Sharing Plan shall be determined by Holdings.

              (c) CONTINENTAL ON-TIME BONUS PROGRAM. Holdings and each Holdings
Affiliate, as applicable, shall continue as a Participating Company consistent
with past practice in the Continental On-Time Bonus Program until Immediately
preceding the Independence Date. Effective Immediately preceding the
Independence Date, the participation of Holdings and each Holdings Affiliate
that is a Participating Company in the Continental On-Time Bonus Program shall
cease. Holdings shall be liable for the full amount of any and all payments
under the Continental On-Time Bonus Program that are owed to Holdings Employees
in connection with the plan participation described in the first sentence of
this Section 6.2(c). All or any portion of

                                      -14-
<PAGE>   16
the payments owed by Holdings to Holdings Employees under the Continental
On-Time Bonus Program shall, at the election of Holdings, be paid by Continental
and added to the amount payable by Holdings under the InterCompany Note.
Effective as of the Independence Date, Holdings shall use reasonable best
efforts to adopt or cause to be adopted the Holdings On-Time Bonus Program for
the benefit of eligible Holdings Employees subject to terms and conditions to be
determined by Holdings. The Holdings On-Time Bonus Program shall provide (i)
credit for performance prior to the Independence Date to the extent necessary to
achieve equity and (ii) a payment schedule similar to that set forth in the
Continental On-Time Bonus Program.

              (d) CONTINENTAL PERFECT ATTENDANCE PROGRAM. Holdings and each
Holdings Affiliate, as applicable, shall continue as a Participating Company
consistent with past practice in the Continental Perfect Attendance Program
through December 31, 2001. The participation in the Continental Perfect
Attendance Program by Holdings and each Holdings Affiliate that is a
Participating Company in the Continental Perfect Attendance Program shall cease
effective as of January 1, 2002. Holdings shall be liable for the full amount of
any and all payments and/or awards under the Continental Perfect Attendance
Program that are owed to Holdings Employees in connection with the plan
participation described in the first sentence of this Section 6.2(d). All or any
portion of the payments and/or awards owed by Holdings to Holdings Employees
under the Continental Perfect Attendance Program shall, at the election of
Holdings, be paid by Continental and added to the amount payable by Holdings
under the InterCompany Note. Effective as of January 1, 2002, Holdings shall use
reasonable best efforts to adopt or cause to be adopted the Holdings Perfect
Attendance Program for the benefit of eligible Holdings Employees subject to
terms and conditions to be determined by Holdings.

         6.3  ESTABLISHMENT OF HOLDINGS MANAGEMENT BONUS PROGRAM. Effective as
of January 1, 2002, Holdings shall use reasonable best efforts to establish the
Holdings Management Bonus Program for the benefit of certain executives and
other employees of Holdings subject to such terms and conditions specified by
Holdings; provided, however, that such plan shall provide for the payment of
bonuses solely in the event that the operating income margin for Holdings for
the year ended December 31, 2002, is at least 90% of the budget approved for
Holdings for such year by the Board of Directors of ExpressJet Holdings or
ExpressJet Airlines and, if such minimum condition is satisfied, the bonus
payable will be based on a sliding scale of between 90% and 110% of the targeted
percentages of annual base salary described below. With respect to the year
ended December 31, 2002, the following are the targeted percentages of annual
base salary under the Holdings Management Bonus Program for the following
officers of ExpressJet Airlines: (a) Chief Executive Officer, 60%; (b) Chief
Operating Officer and Chief Financial Officer, 45% each; (c) Vice Presidents,
40% each; (d) senior director level employees, 25 % each; and (e) director level
employees, 20% each.

         6.4  CONTINENTAL DEFERRED COMPENSATION PLAN. Each eligible Holdings
Employee shall continue to participate, without interruption, in the Continental
Deferred Compensation Plan until Immediately preceding the Independence Date at
which time such participation shall cease. As soon as administratively feasible
thereafter, each participating Holdings Employee shall receive a payment in an
amount equal to the sum of (a) the value of his or her deferral accounts under
such plan and (b) an additional amount that, in the sole discretion of Holdings,
is sufficient to compensate such Holdings Employee for any additional federal
income tax due solely because such distribution caused such Holdings Employee to
be taxed at a higher marginal

                                      -15-
<PAGE>   17
federal income tax rate than would otherwise have applied to such Holdings
Employee upon his termination of employment with Holdings and the Holdings
Affiliates. Such payment shall be made in a single lump sum payment and shall be
paid by Holdings to the extent, if any, that the subtrust established in
connection with Holdings' participation in such plan does not have sufficient
funds to make such payment in full. Notwithstanding the foregoing, in the event
any Holdings Employee participating in the Continental Deferred Compensation
Plan would be treated as having a "Retirement Date" (as defined in such plan) in
the event such individual terminated from service Immediately preceding the
Independence Date, Continental shall cause the Continental Deferred Compensation
Plan to treat such individual as having incurred a "Termination of Service" (as
defined in such plan) at such time (provided such individual remains
continuously employed by Holdings or a Holdings Affiliate through the
Independence Date). In such case, Holdings shall pay to such Holdings Employee
the benefits owed to him or her under the Continental Deferred Compensation Plan
to the extent, if any, that the subtrust established in connection with
Holdings' participation in such plan does not have sufficient funds to pay such
benefits.

         6.5  CONTINENTAL OPTIONS. As of the date upon which Holdings no longer
constitutes a "subsidiary" (as defined in the Continental Plans pursuant to
which the Continental Options were granted) of Continental, each Continental
Option then outstanding that is held by a Holdings Employee shall terminate and
cease to be exercisable; provided, however, that such Holdings Employee shall
have 30 days from and after such date (but in no event longer than the maximum
term of such option) to exercise such option to the extent that it was vested
and exercisable as of such date.

         6.6  HOLDINGS OPTIONS. ExpressJet Holdings shall use reasonable best
efforts to establish and adopt the Holdings 2001 Stock Incentive Plan for the
award of stock options and restricted stock to selected employees and
non-employee directors of Holdings. The Holdings 2001 Stock Incentive Plan shall
be approved by Continental as the sole shareholder of ExpressJet Holdings before
the IPO Date, to become effective as of the IPO Date, and such plan shall have
terms and conditions substantially similar to the Continental Airlines, Inc.
1998 Stock Incentive Plan, except that such Holdings Plan shall provide for all
stock-based awards to be based upon the Class A Common Stock and appropriate
revisions shall be made to reflect that ExpressJet Holdings shall be the sponsor
of such plan. The Holdings 2001 Stock Incentive Plan shall provide that the
maximum number of shares of Class A Common Stock that may be issued under such
plan shall be equal to 5% of the shares of Holdings Common Stock outstanding as
of the IPO Date. As of the IPO Date, Holdings shall use reasonable best efforts
to cause Holdings Options to be granted under the Holdings 2001 Stock Incentive
Plan for a specified number of shares determined by multiplying the following
percentage below by the number of shares of Holdings Common Stock outstanding as
of the IPO Date to individuals in the following positions: (a) Chief Executive
Officer, 0.5%; (b) Chief Operating Officer and Chief Financial Officer, 0.125%
each; (c) Vice Presidents, 0.05% each; (d) senior director level employees, .01%
each; and (e) director level employees, .005% each. Each such Holdings Option
granted as of the IPO Date shall have a purchase price per share equal to the
initial public offering price of the Class A Common Stock offered to investors
in the Initial Public Offering, shall vest in 25% annual increments, and shall
have a maximum term of five-years.

                                      -16-
<PAGE>   18
                                  ARTICLE VII
                                 OTHER BENEFITS

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

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

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

                                      -17-
<PAGE>   19
                                  ARTICLE VIII
                           GENERAL AND ADMINISTRATIVE

         8.1  ADMINISTRATIVE PERSONNEL. A schedule of the individuals employed
in certain Continental corporate business functions who have been designated to
become employees of Holdings or a Holdings Affiliate (the "Holdings
Administrative Employees") has been agreed to by Continental and Holdings in a
separate agreement between Continental and Holdings. The Holdings Administrative
Employees shall become employees of Holdings on or before the IPO Date.

         8.2  PAYMENT OF PLAN EXPENSES.

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

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

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

                                      -18-
<PAGE>   20
              (c) ADMINISTRATIVE SERVICES AGREEMENT. Additional detail on
certain services to be provided by Continental to Holdings and Holdings'
obligation to pay for such services is set forth in the Administrative Services
Agreement. In the event of any conflict between the provisions of this Section
8.2 and the express provisions of the Administrative Services Agreement, the
Administrative Services Agreement shall control.

         8.3  VENDOR CONTRACTS.

              (a) THIRD-PARTY ASO CONTRACTS.

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

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

              (b) GROUP INSURANCE POLICIES.

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

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

                                      -19-

<PAGE>   21
              (c) HMO AGREEMENTS.

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

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

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

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

         8.6  SUCCESSORS; PARTIES IN INTEREST. This Employee Benefits Separation
Agreement shall be binding upon and inure solely to the benefit of each party
hereto and their successors, and nothing in this Employee Benefits Separation
Agreement, express or implied, is intended to

                                      -20-
<PAGE>   22
or shall confer upon any other Person any right, benefit or remedy of any nature
whatsoever under or by reason of this Employee Benefits Separation Agreement.

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

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

                                   ARTICLE IX
                                  MISCELLANEOUS

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

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

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

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

         9.5  CONSENT TO EXCLUSIVE JURISDICTION. Any action, suit or proceeding
arising out of any claim that the parties cannot settle through good faith
negotiations shall be litigated exclusively in the state courts of Harris County
of the State of Texas. Each of the parties hereto hereby irrevocably and
unconditionally (a) submits to the jurisdiction of the state courts of Texas for
any such action, suit or proceeding, (b) agrees not to commence any such action,
suit or

                                      -21-
<PAGE>   23
proceeding except in the state courts of Texas, (c) waives, and agrees not to
plead or to make, any objection to the venue of any such action, suit or
proceeding in the state courts of Texas, (d) waives, and agrees not to plead or
to make, any claim that any such action, suit or proceeding brought in the state
courts of Texas has been brought in an improper or otherwise inconvenient forum,
(e) waives, and agrees not to plead or to make, any claim that the state courts
of Texas lack personal jurisdiction over it, and (f) waives its right to remove
any such action, suit or proceeding to the federal courts except when such
courts are vested with sole and exclusive jurisdiction by statute. Continental
and Holdings shall cooperate with each other in connection with any such action,
suit or proceeding to obtain reliable assurances that confidential treatment
will be accorded any information that any party shall reasonably deem to be
confidential or proprietary. Each of the parties hereto further covenants and
agrees that, until the expiration of all applicable statutes of limitations
relating to potential claims under this Employee Benefits Separation Agreement,
each such party shall maintain a duly appointed agent for the service of
summonses and other legal process in the State of Texas.

         9.6  NOTICES. All notices 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 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, HQSLG
         Houston, Texas 77002
         Attention: General Counsel
         Telecopy No.: (713) 324-5161

if to ExpressJet Holdings, to:

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

if to ExpressJet Airlines, to:

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

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

                                      -22-

<PAGE>   24
         9.7  AMENDMENT AND TERMINATION. This Employee Benefits Separation
Agreement may not be amended or modified in any respect except by a written
agreement signed by all of the parties hereto.

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

         9.9  WAIVER. The observance of any term of this Employee Benefits
Separation Agreement may be waived (either generally or in a particular instance
and either retroactively or prospectively) by the party entitled to enforce such
term, but such waiver shall be effective only if it is in writing signed by the
party against which such waiver is to be asserted. Unless otherwise expressly
provided in this Employee Benefits Separation Agreement, no delay or omission on
the part of any party in exercising any right or privilege under this Employee
Benefits Separation Agreement shall operate as a waiver thereof, nor shall any
waiver on the part of any party of any right or privilege under this Employee
Benefits Separation Agreement operate as a waiver of any other right or
privilege under this Employee Benefits Separation Agreement nor shall any single
or partial exercise of any right or privilege preclude any other or further
exercise thereof or the exercise of any other right or privilege under this
Employee Benefits Separation Agreement. No failure by a party to take any action
or assert any right or privilege hereunder shall be deemed to be a waiver of
such right or privilege in the event of the continuation or repetition of the
circumstances giving rise to such right unless expressly waived in writing by
the party against whom the existence of such waiver is asserted.

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

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

                                      -23-
<PAGE>   25

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

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

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

                                          CONTINENTAL AIRLINES, INC.

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

                                          EXPRESSJET HOLDINGS, INC.

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

                                      -24-
<PAGE>   26

                                          EXPRESSJET AIRLINES, INC.

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

                                      -25-

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