Document:

<PAGE>   1
                                                                    EXHIBIT 10.6

                   NON-QUALIFIED STOCK OPTION AWARD AGREEMENT
                       UNDER THE 1989 STOCK INCENTIVE PLAN

                                  July 27, 2000

[Name]

         The 1989 Stock Incentive Plan, as amended (the "Plan"), is a
stock-based incentive compensation plan for officers and key employees of Delta
Air Lines, Inc. (the "Company") and its Subsidiaries. The Plan is administered
by the Personnel & Compensation Committee of the Company's Board of Directors
(the "Committee"). The Committee has selected you to receive an award of a
Non-Qualified Stock Option under Section 5 of the Plan, effective as of July 27,
2000, and has requested me, on behalf of the Company, to provide this Agreement
to you.

         In consideration of the mutual covenants herein contained and for other
good and valuable consideration, the Company and you, as an employee of the
Company or one or more of its Subsidiaries, hereby agree as follows:

1.       Grant of Award; Acknowledgments; Capitalized Terms. The Company hereby
grants to you a Non-Qualified Stock Option ("Stock Option") covering XX,XXX
shares (the "Option Shares") of Stock, as defined in the Plan, a copy of which
has been provided to you. This award is in all respects made subject to the
terms and conditions of the Plan and, in the event of any conflict between the
Plan and this Agreement, the Plan shall control. You acknowledge that you (a)
have had a full and adequate opportunity to read this Agreement and the Plan;
(b) agree to all of the terms and conditions thereof for yourself, any
designated beneficiary and your heirs, executors, administrators or personal
representatives; and (c) have received, and had a full and adequate opportunity
to read, the Prospectus relating to the Plan. Capitalized terms which are used
but not defined in this Agreement shall have the meanings set forth in the Plan.

2.       Option Price. The Option Price of the Stock Option covered by this
award shall be $52.7500, the closing price of the Stock on the New York Stock
Exchange on July 27, 2000, the date of this award.

3.       Exercise Period - General Rule. Subject to the terms and conditions of
the Plan and this Agreement, the Stock Option (a) shall become exercisable with
respect to 25% of the Option Shares on each of July 27, 2001, 2002, 2003 and
2004; and (b) shall be exercisable through and including July 26, 2010.

                                   ----------

  This document constitutes part of a prospectus covering securities that have
               been registered under the Securities Act of 1933.

<PAGE>   2

4.       Special Rules Regarding Stock Option Exercise Period. The Stock Option
exercise period set forth in Paragraph 3 of this Agreement is subject to the
following terms and conditions (which shall apply in lieu of the provisions of
Section 10 of the Plan):

         a.       Termination of Employment Because of Retirement or Disability.
If your employment with the Company terminates due to Retirement or Disability,
the Stock Option (whether or not then exercisable under Paragraph 3 of this
Agreement) may be exercised, in whole or in part, to the extent not previously
exercised, forfeited, revoked or modified, only during the period (i) beginning
on the later of (A) July 27, 2001 or (B) the date your employment with the
Company terminates due to Retirement or Disability; and (ii) ending on and
including the earlier of (A) July 26, 2010 or (B) the third anniversary of the
date your employment with the Company terminates due to Retirement or
Disability.

         b.       Termination of Employment Because of Death. If you die while
employed by the Company, the Stock Option (whether or not then exercisable under
Paragraph 3 of this Agreement) may be exercised, in whole or in part, to the
extent not previously exercised, forfeited, revoked or modified, only during the
period (i) beginning on the date of your death; and (ii) ending on and including
the earlier of (A) July 26, 2010 or (B) the third anniversary of the date of
your death.

         c.       Death After Termination of Employment Because of Retirement or
Disability. If you die after your employment with the Company terminates due to
Retirement or Disability, the Stock Option (whether or not then exercisable
under Paragraph 4(a) of this Agreement) may be exercised, in whole or in part,
to the extent not previously exercised, forfeited, revoked or modified, only
during the period (i) beginning on the date of your death; and (ii) ending on
and including the earlier of (A) July 26, 2010 or (B) the third anniversary of
the date your employment with the Company terminates due to Retirement or
Disability.

         d.       Termination of Employment for Reasons Other than Retirement,
Disability or Death. If your employment with the Company terminates for any
reason other than Retirement, Disability or death, the Stock Option (whether or
not then exercisable under Paragraph 3 of this Agreement), to the extent not
previously exercised, shall be forfeited at the time of such termination of
employment.

         e.       Definition of Retirement. For purposes of Paragraphs 4 and 8
of this Agreement, "Retirement" means retirement from employment with the
Company or any of its Subsidiaries pursuant to the qualified defined benefit
retirement plan of such entity applicable to you. If you are an Employee of a
Subsidiary of the Company which does not have in effect a qualified defined
benefit retirement plan at the time you cease employment with such Subsidiary
(other than cessation of employment due to death, Disability, or transfer to the
Company or any of its other Subsidiaries), Retirement from such Subsidiary shall
mean your cessation of employment with that Subsidiary at or after age 55.

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<PAGE>   3

         f.       Definitions. For purposes of Paragraphs 4 and 8 of this
Agreement, (i) employment with the Company includes employment with any
Subsidiary of the Company; and (ii) termination of employment with the Company
means you are no longer an employee of the Company or any of its Subsidiaries.

5.       Stock Option Exercise Procedures. Subject to the terms and conditions
of the Plan and this Agreement, you (or, pursuant to Paragraph 7 of this
Agreement, a party acting on your behalf after your death) may exercise the
Stock Option in whole or, from time to time, in part pursuant to the procedures
described in the Prospectus relating to the Plan or as otherwise specified by
the Company from time to time. Payment of the full purchase price of the shares
of Stock covered by the exercise shall be made in the manner prescribed by the
Committee from time to time. If the Committee, in its sole discretion, shall
determine that it is appropriate to do so, such payment may be made in whole or
in part by tender of shares of unrestricted Stock, as set forth in Section 5 of
the Plan, subject to such requirements or procedures as the Committee may
specify.

6.       Tax Withholding. The Company may in its sole discretion withhold from
the shares of Stock issued to you a sufficient number of shares of Stock based
on its fair market value on the date of exercise to cover any amounts which the
Company is required to withhold to comply with withholding requirements of
federal, state, local or foreign tax laws, rules or regulations. The fair market
value for purposes of the second sentence of this paragraph shall be as
determined by the Committee.

7.       Restrictions on Transferability. The Stock Option is not transferable
otherwise than by will, by the laws of descent and distribution, or by a written
designation referred to in Section 10(c) of the Plan, and is exercisable during
your lifetime only by you. In the event that the Stock Option is to be exercised
by any person other than you, the written notice referred to in Paragraph 5 of
this Agreement shall be accompanied by appropriate proof of the right of such
person to exercise the Stock Option.

8.       Forfeiture, Revocation or Modification of Award. In addition to
Paragraph 4(d) of this Agreement (and in lieu of the provisions of Section 10 of
the Plan), the Stock Option shall be subject to forfeiture, revocation or
modification as follows:

         a.       Non-Competition Agreement After Early Retirement. If your
employment with the Company terminates due to Retirement prior to age 65, if you
are not then on the pilot seniority list of the Company or any of its
Subsidiaries, or age 60, if you are then on such a seniority list, and, within
two years after such Retirement and without the Committee's approval, you
directly or indirectly provide management or executive services (whether as a
consultant, advisor, officer or director) to any Person who is in direct and
substantial competition with the air transportation business of the Company or
its Subsidiaries, the Stock Option (whether or not then exercisable under
Paragraph 4(a) of this Agreement) shall be forfeited at the time you first
provide such management or executive services. Because of the broad and
extensive scope of the Company's air transportation business, you acknowledge
that the restrictions in this paragraph are intended to extend to management or
executive services which are directly related to the

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<PAGE>   4

provision of air transportation services into, within or from the United States,
as no smaller geographical restriction will adequately protect the legitimate
business interests of the Company.

         b.       Demotion. If, prior to July 27, 2004, you voluntarily suggest
and then accept a demotion, or are involuntarily demoted, to a position with the
Company or any of its Subsidiaries involving lesser responsibilities than those
of the job held by you on July 27, 2000, the Committee may in its sole
discretion, not later than six months from the date of the demotion, revoke or
modify the Stock Option in any manner it deems appropriate under the
circumstances. The Committee will determine in its sole discretion what
constitutes a demotion to a job involving lesser responsibilities under this
paragraph.

9.       Federal Securities Law; Company Policies. You acknowledge that the
federal securities laws and/or the Company's policies regarding trading in its
securities may limit or restrict your right to buy or sell shares of Stock,
including, without limitation, sales of Stock to exercise the Stock Option or
sales of Stock acquired pursuant to the exercise of the Stock Option. You agree
to comply with such federal securities law requirements and Company policies, as
such laws and policies are amended from time to time.

10.      Miscellaneous

         a.       Authority of the Committee. The Committee has the sole and
complete authority to construe and interpret the Plan and this Agreement. All
determinations of the Committee shall be final and conclusive for all purposes
and upon all persons. The Committee shall be under no obligation to construe
this Agreement or treat the Stock Option in a manner consistent with the
treatment provided with respect to other Stock Options or Participants.

         b.       No Rights as Shareholder. You will not have any rights to
dividends nor any other rights of a shareholder with respect to the Option
Shares until the Option Shares have been issued following a valid exercise of
the Stock Option.

         c.       Entire Agreement. Subject to any written executive retention
protection agreement, if any, entered into between and executed by you and the
Company, this Agreement and the Plan constitute the entire agreement between you
and the Company with respect to the subject matter hereof. This Agreement may
not be amended except by a writing signed by the parties.

         This Agreement has been prepared in duplicate. Please note your
acceptance in the space provided therefor and return one original to the Vice
President - Global Rewards & Recognition (Dept. 959-ATG) for the Company's
records.

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<PAGE>   5

         IN WITNESS WHEREOF, the Company, acting through the Committee, and you
have executed this Agreement, all as of the date first written above.

                              DELTA AIR LINES, INC.

                              By:
                                  ---------------------------------------------
                                   Leo F. Mullin
                                   Chairman of the Board and
                                   Chief Executive Officer

                              PARTICIPANT

                              -------------------------------------------------

                                       5<PAGE>   1
                                                                    EXHIBIT 10.7

               PERFORMANCE-BASED RESTRICTED STOCK AWARD AGREEMENT
                       UNDER THE 1989 STOCK INCENTIVE PLAN

                                  July 27, 2000

[Name]

         The 1989 Stock Incentive Plan, as amended (the "Plan"), is a
stock-based incentive compensation plan for officers and key employees of Delta
Air Lines, Inc. ("Delta") and its Subsidiaries. The Plan is administered by the
Personnel & Compensation Committee of Delta's Board of Directors (the
"Committee"). The Committee has selected you to receive an Other Stock-Based
Award (as described below) under Section 8 of the Plan, effective as of July 27,
2000, and has requested me, on behalf of Delta, to provide this Agreement to
you.

         In consideration of the mutual covenants herein contained and for other
good and valuable consideration, Delta and you, as an employee of Delta or one
or more of its Subsidiaries, hereby agree as follows:

1.       Grant of Target Award; Acknowledgments; Capitalized Terms. Delta hereby
grants to you a target award (the "Target Award") of performance-based
restricted stock with respect to XX,XXX shares of Stock, as defined in the Plan,
a copy of which has been provided to you. The Target Award is in all respects
made subject to the terms and conditions of the Plan and, in the event of any
conflict between the Plan and this Agreement, the Plan shall control. You
acknowledge that you (a) have had a full and adequate opportunity to read this
Agreement and the Plan; (b) agree to all of the terms and conditions thereof for
yourself, any designated beneficiary and your heirs, executors, administrators
or personal representatives; and (c) have received, and had a full and adequate
opportunity to read, the prospectus relating to the Plan. Capitalized terms
which are used but not defined in this Agreement shall have the meanings set
forth in the Plan. The term "Agreement" means this Agreement, including Exhibits
A, B, C and D hereto.

2.       Nature of Target Award. The Target Award represents the opportunity,
expressed as a number of shares of Stock, to receive a payout of shares of
Stock, or a combination of cash and shares of Stock. This opportunity is subject
to the terms and conditions of the Plan and this Agreement.

3.       Performance Measurement Criteria. The potential payout with respect to
the Target Award (the "Potential Payout Award") is based on (a) the Target
Award; and (b) Delta's U.S. Department of Transportation performance rank ("DOT
Performance Rank") and total shareholder return rank ("Total Shareholder Return
Rank") relative to certain peer companies (the "Peer Groups") during the
applicable measurement period (the "Measurement Period"), as determined in
accordance with this Agreement. Exhibit A of this Agreement describes the Peer
Groups and the Measurement Period for purposes of determining Delta's DOT
Performance

  This document constitutes part of a prospectus covering securities that have
                been registered under the Securities Act of 1933.

<PAGE>   2

Rank and Total Shareholder Return Rank. Exhibits B and C describe the
methodology for determining Delta's DOT Performance Rank and Total Shareholder
Return Rank, respectively.

4.       Potential Payout Award. The Potential Payout Award for the applicable
Measurement Period will be determined in accordance with the following formula,
rounded to the nearest whole number:

       Potential Payout Award = Potential Payout Percentage X Target Award

The "Potential Payout Percentage" is the percentage set forth in the applicable
box of the following Performance Matrix Table, based on Delta's DOT Performance
Rank and Total Shareholder Return Rank for the applicable Measurement Period:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
  PERFORMANCE MATRIX TABLE:  PERCENT OF TARGET AWARD ELIGIBLE TO BE RECEIVED
--------------------------------------------------------------------------------------------------------------------
<S>                                              <C>           <C>          <C>           <C>            <C>
  Delta's DOT Performance Rank vs. Applicable
       Peer Group for Measurement Period
                   1st or 2nd                        0%            80%         110%          150%          200%
                                                --------------------------------------------------------------------
                   3rd or 4th                        0%            60%          90%          120%          160%
                                                --------------------------------------------------------------------
                   5th or 6th                        0%            40%          70%          100%          130%
                                                --------------------------------------------------------------------
                   7th or 8th                        0%            0%           50%           80%          110%
                                                --------------------------------------------------------------------
                  9th or 10th                        0%            0%           0%            0%            0%
                                                --------------------------------------------------------------------
                                                 9th or 10th   7th or 8th   5th or 6th    3rd or 4th     1st or 2nd
                                                --------------------------------------------------------------------
                                                               Delta's Total Shareholder Return Rank
                                                         vs. Applicable Peer Group for Measurement Period
                                                --------------------------------------------------------------------
</TABLE>

See Exhibit D of this Agreement for an illustrative calculation of the Potential
Payout Award.

5.       Special Rules Regarding Termination of Employment and Demotion.

         a.       Termination of Employment Because of Retirement, Disability or
Death. If, prior to June 30, 2003, your employment with Delta terminates due to
Retirement, Disability or death, you or your beneficiary or estate, as the case
may be, shall be eligible to receive only that proportion of the Potential
Payout Award for the applicable Measurement Period (as determined in accordance
with Exhibit A of this Agreement) that the number of full months from July 1,
2000 through the date of termination of your employment bears to 36.

         b.       Termination of Employment for Reasons Other than Retirement,
Disability or Death. If, prior to June 30, 2003, your employment with Delta
terminates for any reason other than Retirement, Disability or death, (i) the
Target Award shall be forfeited at the time of such termination of employment;
and (ii) you shall not receive an Actual Payout Award (as defined in Paragraph 6
of this Agreement).

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<PAGE>   3

         c.       Demotion. If, prior to June 30, 2003, you voluntarily suggest
and then accept a demotion, or are involuntarily demoted, to a position with
Delta involving lesser responsibilities than those of the job held by you on
July 27, 2000, the Committee may in its sole discretion, not later than six
months from the date of the demotion, revoke or modify the Target Award in any
manner it deems appropriate under the circumstances. The Committee will
determine in its sole discretion what constitutes a demotion to a job involving
lesser responsibilities under this paragraph.

         d.       Definition of Retirement. For purposes of Paragraph 5 and
Exhibit A of this Agreement, "Retirement" means retirement from employment with
Delta or any of its Subsidiaries pursuant to the qualified defined benefit
retirement plan of such entity applicable to you. If you are an Employee of a
Subsidiary of Delta which does not have in effect a qualified defined benefit
retirement plan at the time you cease employment with such Subsidiary (other
than cessation of employment due to death, Disability, or transfer to Delta or
any of its other Subsidiaries), Retirement from such Subsidiary shall mean your
cessation of employment with that Subsidiary at or after age 55.

         e.       Other Definitions. For purposes of Paragraph 5, Paragraph 8
and Exhibit A of this Agreement, (i) employment with Delta includes employment
with any Subsidiary of Delta; and (ii) termination of employment with Delta
means you are no longer an employee of Delta or any of its Subsidiaries.

6.       Committee Discretion to Reduce Actual Payout Award. Except as provided
in (a) Paragraph 8 of this Agreement, (b) Section 9 of the Plan or (c) any
written executive retention agreement, if any, entered into between and executed
by you and Delta, the Committee may in its sole discretion eliminate or reduce
(to any whole number less than the Potential Payout Award) the actual payout
under this Agreement. The actual payout after any such reduction is referred to
in this Agreement as the "Actual Payout Award."

7.       Form and Timing of Actual Payout Award. The Actual Payout Award
entitles you to a payout of shares of Stock determined in accordance with this
Agreement. Subject to such terms and conditions as the Committee may establish,
you may elect to receive cash in lieu of 40% of the shares of Stock to which you
are entitled pursuant to the preceding sentence. Unless the Committee determines
otherwise, the Actual Payout Award shall be paid within 75 calendar days
following the close of the applicable Measurement Period.

8.       Change in Control. Upon the occurrence, prior to June 30, 2003, of a
Change in Control (as defined in the Plan) while you are employed by Delta, the
Actual Payout Award shall be the greater of (a) the Potential Payout Award for
the applicable Measurement Period (as determined in accordance with Exhibit A of
this Agreement) and (b) the Target Award, in each case prorated to reflect the
proportion that the number of full months from July 1, 2000 through the date of
the Change in Control bears to 36. In these circumstances, the Actual Payout
Award shall be paid promptly after the occurrence of the Change in Control in
the form determined under Paragraph 7 of this Agreement.

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<PAGE>   4

9.       Tax Withholding. Delta shall withhold from the Actual Payout Award, if
any, a sufficient amount to cover any amounts which Delta is required to
withhold to comply with requirements of federal, state, local or foreign tax
laws, rules or regulations. Delta shall satisfy this requirement (a) to the
fullest extent possible by withholding from the cash portion, if any, of the
Actual Payout Award; and (b) if any additional withholding is required or if you
did not receive a cash payout, by withholding a sufficient number of shares of
Stock (based on its fair market value as determined by the Committee) from the
Actual Payout Award.

10.      Restrictions on Transferability. The Target Award and the Potential
Payout Award are not transferable otherwise than (a) by will; (b) by the laws of
descent and distribution; or (c) by a written designation referred to in Section
10(c) of the Plan.

11.      Federal Securities Law; Company Policies. You acknowledge that the
federal securities laws and/or Delta's policies regarding trading in its
securities may limit or restrict your right to buy or sell shares of Stock. You
agree to comply with such federal securities law requirements and Delta
policies, as such laws and policies are amended from time to time.

12.      Miscellaneous

         a.       Authority of the Committee. The Committee has the sole and
complete authority to construe and interpret the Plan and this Agreement. All
determinations of the Committee shall be final and conclusive for all purposes
and upon all persons. The Committee shall be under no obligation to construe
this Agreement or to treat any award covered by this Agreement in a manner
consistent with the treatment provided with respect to any other award or
Participant.

         b.       Unfunded Obligation. Obligations of Delta arising under this
Agreement, if any, shall be unfunded and unsecured. You shall have no rights
greater than the rights of a general, unsecured creditor of Delta with respect
to any award covered by this Agreement.

         c.       No Rights as Shareholder. You shall have no voting rights,
shall not accrue any dividends or other distributions paid, and shall have no
other rights as a shareholder, with respect to any shares of Stock subject to an
award under this Agreement prior to the date such shares are actually issued to
you.

         d.       Entire Agreement. Subject to any written executive retention
protection agreement, if any, entered into between and executed by you and
Delta, this Agreement and the Plan constitute the entire agreement between you
and Delta with respect to the subject matter hereof. This Agreement may not be
amended except by a writing signed by the parties. Nothing in this Agreement
shall be deemed to modify or amend any retention protection agreement referred
to in the first sentence of this Paragraph 12(d).

         This Agreement has been prepared in duplicate. Please note your
acceptance in the space provided therefor and return one original to the Vice
President - Global Rewards and Recognition (Department 959-ATG) for Delta's
records.

                                       4
<PAGE>   5

         IN WITNESS WHEREOF, Delta, acting through the Committee, and you have
executed this Agreement, all as of the date first written above.

                                     DELTA AIR LINES, INC.

                                     By:
                                         --------------------------------------
                                         Leo F. Mullin
                                         Chairman of the Board and
                                         Chief Executive Officer

                                     PARTICIPANT

                                     ------------------------------------------

                                       5

<PAGE>   6
                                                                       EXHIBIT A

PEER GROUPS

The Peer Groups for determining Delta's DOT Performance Rank and Total
Shareholder Return Rank are as follows:
<TABLE>
<CAPTION>
   DOT PERFORMANCE RANK PEER GROUP                   TOTAL SHAREHOLDER RETURN RANK PEER GROUP
   <S>                                               <C>
   -    Alaska Airlines, Inc.                        -   Alaska Air Group, Inc.
   -    America West Airlines, Inc.                  -   America West Holdings Corporation
   -    American Airlines, Inc.                      -   AMR Corporation
   -    Continental Airlines, Inc.                   -   Continental Airlines, Inc.
   -    Northwest Airlines, Inc.                     -   Northwest Airlines Corporation
   -    Southwest Airlines Co.                       -   Southwest Airlines Co.
   -    Trans World Airlines, Inc.                   -   Trans World Airlines, Inc.
   -    United Air Lines, Inc.                       -   UAL Corporation
   -    US Airways, Inc.                             -   US Airways Group, Inc.
</TABLE>

MEASUREMENT PERIOD

-    GENERAL RULE. The Measurement Period for determining Delta's DOT
     Performance Rank and Total Shareholder Return Rank is the period beginning
     on July 1, 2000 and, subject to the following two paragraphs, ending on and
     including June 30, 2003.

-    TERMINATION OF EMPLOYMENT BECAUSE OF RETIREMENT, DISABILITY OR DEATH. If,
     prior to June 30, 2003, your employment with Delta terminates because of
     Retirement, Disability or death, the Measurement Period shall end (1) for
     purposes of determining Delta's DOT Performance Rank, as of the end of the
     last complete month preceding such termination of employment; and (2) for
     purposes of determining Delta's Total Shareholder Return Rank, on the date
     of such termination of employment.

-    CHANGE IN CONTROL. If, prior to June 30, 2003, there is a Change in Control
     while you are employed by Delta, the Measurement Period shall end (1) for
     purposes of determining Delta's DOT Performance Rank, as of the end of the
     last complete month preceding such Change in Control for which the U.S.
     Department of Transportation ("DOT") has reported the information used to
     determine Delta's DOT Performance Rank; and (2) for purposes of determining
     Delta's Total Shareholder Return Rank, on the date of such Change in
     Control.
<PAGE>   7

                                                                       EXHIBIT B

DETERMINATION OF DOT PERFORMANCE RANK

The DOT Performance Rank for the Measurement Period for Delta and each airline
in the DOT Performance Rank Peer Group (each airline, including Delta, an
"Airline") will be based on DOT reported information regarding each Airline's
(1) on-time arrival performance; (2) consumer complaint record; and (3)
mishandled baggage rate (collectively, the "DOT Performance Measures").(1) A
description of the DOT Performance Measures and the methodology for calculating
each Airline's DOT Performance Rank follows.(2)

-        ON-TIME ARRIVAL PERFORMANCE. An Airline's on-time arrival performance
         for a particular month is measured by the percentage (rounded to one
         decimal place) of its nonstop, scheduled-service domestic flights that
         arrive less than 15 minutes after their scheduled arrival time, as
         reported for that month by the DOT.(3) An Airline's on-time arrival
         performance for the Measurement Period will be equal to the average of
         its DOT reported monthly on-time arrival percentages for that period.
         Each Airline's on-time arrival percentage for the Measurement Period
         will then be ranked, with "1" being the best ranking (i.e., the highest
         on-time arrival percentage) and "10" being the worst ranking (i.e., the
         lowest on-time arrival percentage).

-        CONSUMER COMPLAINT RECORD. An Airline's consumer complaint record for a
         particular month is measured by its number of consumer complaints per
         100,000 passengers enplaned (rounded to two decimal places), as
         reported for that month by the DOT.(4) An Airline's consumer complaint
         record for the Measurement Period will be equal to the average of its
         DOT reported monthly consumer complaints per 100,000 enplanements for
         that period. Each Airline's consumer complaint record for the
         Measurement Period will then be ranked, with "1" being the best ranking
         (i.e., the lowest number of consumer complaints per 100,000

----------
(1) The DOT publishes this information on a monthly basis in its Air Travel
    Consumer Report. This report is intended to provide consumers with
    information regarding the quality of airline services. Information for a
    particular month is usually reported by the first week of the second
    following month.

(2) The description of the DOT Performance Measures is based on DOT regulations
    and policies as in effect on the date of this agreement. If the DOT amends
    these regulations or policies during the Measurement Period, the description
    of any impacted DOT Performance Measure will be automatically adjusted on a
    prospective basis to reflect the amendment. For example, if, effective
    July 1, 2002, the DOT amends its definition of on-time arrivals to mean an
    arrival within less than 10 minutes (rather than within less than
    15 minutes) after the scheduled arrival time, the description of on-time
    arrival performance would be modified for purposes of determining on-time
    arrival performance beginning in July 2002.

(3) The DOT reports this information each month based on required and voluntary
    monthly on-time performance reports filed by each Airline for its domestic
    system. See 14 CFR ss234.4 and 234.7.

(4) The DOT reports this information each month based on the number of aviation
    consumer complaints filed with the DOT regarding each Airline. See the
    "Consumer Complaints" section of the DOT's Air Travel Consumer Report.

<PAGE>   8
         enplanements) and "10" being the worst ranking (i.e., the highest
         number of consumer complaints per 100,000 enplanements).

-        MISHANDLED BAGGAGE RATE. An Airline's mishandled baggage rate for a
         particular month is measured by its number of mishandled baggage
         reports per 1,000 passengers enplaned (rounded to two decimal places),
         as reported for that month by the DOT.(5) An Airline's mishandled
         baggage rate for the Measurement Period will be equal to the average of
         its DOT reported monthly mishandled baggage reports per 1,000
         enplanements for that period. Each Airline's mishandled baggage rate
         for the Measurement Period will then be ranked, with "1" being the best
         ranking (i.e., the lowest number of mishandled baggage reports per
         1,000 enplanements) and "10" being the worst ranking (i.e., the highest
         number of mishandled baggage reports per 1,000 enplanements.)

-        CALCULATION OF DOT PERFORMANCE RANK. An Airline's DOT Performance Rank
         will be determined by (1) multiplying its rank for each DOT Performance
         Measure for the Measurement Period by the applicable weighting; and (2)
         adding these three products. The applicable weightings are: on-time
         arrival performance - 60%; consumer complaint record - 20%; and
         mishandled baggage rate - 20%. The Airline with the lowest overall
         score will be ranked "1" (i.e., the best DOT Performance Rank); the
         Airline with the next lowest score will be ranked "2" (i.e., the second
         best DOT Performance Rank); and so on.

-        TIES BETWEEN DELTA AND ANOTHER AIRLINE. If Delta and another Airline
         have the same rank for any DOT Performance Measure, or the same overall
         score for the DOT Performance Measures, Delta's rank or overall score,
         as applicable, will be deemed to be lower than (i.e., superior to) the
         other Airline's rank or overall score, respectively.

-        OTHER FACTORS. If during the Measurement Period:

         -        the DOT ceases to report with respect to (1) one of the DOT
                  Performance Measures, the weighting for that DOT Performance
                  Measure will be allocated equally between the remaining two
                  DOT Performance Measures; and (2) two of the DOT Performance
                  Measures, the weightings for those DOT Performance Measures
                  will be allocated to the remaining DOT Performance Measure.
                  For example, if effective July 1, 2002, the DOT ceases to
                  report with respect to Airlines' consumer complaint records,
                  the weightings for on-time arrival performance and mishandled
                  baggage rate would increase to 70% and 30%, respectively, for
                  the entire Measurement Period.

         -        the DOT ceases to report with respect to each of the DOT
                  Performance Measures, your Actual Payout Award, if any, will
                  be based on Delta's Total Shareholder Return Rank during the
                  Measurement Period.

         -        the DOT ceases to report with respect to one or more of the
                  DOT Performance Measures for a particular Airline, that
                  Airline will be ranked "10" for such DOT

----------
(5) The DOT reports this information each month based on monthly mishandled
    baggage reports required to be filed by each Airline. See 14 CFR s234.6.

                                       2
<PAGE>   9

                  Performance Measure(s). This could occur, for example, if an
                  Airline ceases to qualify as a "reporting carrier" under 14
                  CFR ss.234.2.

         -        an Airline ceases to exist because it is merged into another
                  company (e.g., Continental Airlines, Inc. is merged into
                  Northwest Airlines, Inc.) or otherwise, that Airline will be
                  ranked "10".

         -        ILLUSTRATIVE DETERMINATION OF DELTA'S DOT PERFORMANCE RANK.

<TABLE>
<CAPTION>
     ------------------------------------------------------------------------------------------------------------
           DOT Performance Measures          Delta's Rank vs. Applicable
                                             Peer Group for Measurement      x      Weighting      =      Score
                                                       Period
     ------------------------------------------------------------------------------------------------------------
     <S>                                     <C>                            <C>     <C>           <C>     <C>
     On-time arrival performance                          2                  x         60%         =        1.2
     Consumer complaint record                            3                  x         20%         =         .6
     Mishandled baggage rate                              3                  x         20%         =         .6
     Delta's Overall Score for DOT                                                                          2.4
     Performance Measures
     ------------------------------------------------------------------------------------------------------------
</TABLE>

Assumptions

         -        Delta's overall score is 2.4, as calculated above

         -        One Airline had an overall score of 1.9

         -        One Airline (other than Delta) had an overall score of 2.4

         -        The other seven Airlines had overall scores between 2.5 and
                  10.0

Delta's DOT Performance Rank

         -        Based on these assumptions, Delta's DOT Performance Rank for
                  the Measurement Period would be "2" (i.e., Delta had the
                  second lowest overall score for the DOT Performance Measures).
                  As stated above, if Delta and another Airline have the same
                  overall score, Delta's overall score will be deemed to be
                  lower than (i.e., superior to) the other Airline's overall
                  score.

                                       3

<PAGE>   10

                                                                       EXHIBIT C

DETERMINATION OF TOTAL SHAREHOLDER RETURN RANK

The Total Shareholder Return Rank for the Measurement Period for Delta and each
company in the Total Shareholder Return Rank Peer Group (each company, including
Delta, a "Public Company") will be based on the appreciation of the price of its
Common Stock (as defined below) during that period. For these purposes, any
dividend or other distribution paid by a Public Company on its Common Stock and
having a record date that occurs during the Measurement Period will be deemed to
be reinvested in additional shares of that Common Stock. A description of the
terms and methodology for calculating each Public Company's Total Shareholder
Return Rank follows.

-    GENERAL RULE. A Public Company's Total Shareholder Return Rank for the
     Measurement Period will be determined (1) by first calculating its Total
     Shareholder Return Percentage (rounded to three decimal places) for the
     Measurement Period; and (2) then ranking these percentages, with "1" being
     the best ranking (i.e., the highest Total Shareholder Return Percentage)
     and "10" being the worst ranking (i.e., the lowest Total Shareholder Return
     Percentage).

-    TOTAL SHAREHOLDER RETURN PERCENTAGE. A Public Company's Total Shareholder
     Return Percentage for the Measurement Period will be calculated using the
     following formula:

     Total Shareholder Return Percentage  =  (A x B) - C
                                             -----------
                                                  C

where:

         A =      1 plus the number of shares, if any, of a Public Company's
                  Common Stock deemed to be acquired during the Measurement
                  Period with dividends and other distributions that are paid on
                  one share of that Common Stock.

         B =      The average of the daily Closing Prices (as defined below)
                  per share of a Public Company's Common Stock for the 20
                  consecutive Trading Days (as defined below) including and
                  immediately preceding the end of the Measurement Period.

         C =      The average of the daily Closing Prices per share of a
                  Public Company's Common Stock for the 20 consecutive Trading
                  Days immediately preceding July 1, 2000.

<PAGE>   11

- DEFINITIONS

         -        BUSINESS DAY. "Business Day" means any day other than a
                  Saturday, Sunday or a day on which banking institutions in the
                  State of New York are authorized or obligated by law or
                  executive order to close.

         -        CLOSING PRICE. The "Closing Price" of a security for any day
                  means the last reported sale price, regular way, on such day
                  or, if no sale takes place on such day, the average of the
                  reported closing bid and asked prices, regular way, on such
                  day, in either case as reported on the New York Stock Exchange
                  Composite Tape or, if such security is not listed or admitted
                  to trading on the New York Stock Exchange, on the principal
                  national securities exchange on which such security is listed
                  or admitted to trading or, if such security is not listed or
                  admitted to trading on any national securities exchange, on
                  NASDAQ or, if such security is not quoted on NASDAQ, the
                  average of the closing bid and asked prices on such day in the
                  over-the-counter market as reported by NASDAQ or, if bid and
                  asked prices for such security on such day shall not have been
                  reported through NASDAQ, the average of the bid and asked
                  prices on such day as furnished by any New York Stock Exchange
                  member firm regularly making a market in such security
                  selected for such purpose by the Committee.

         -        COMMON STOCK. "Common Stock" means the class of a Public
                  Company's common stock that is publicly traded on a national
                  securities exchange or on NASDAQ on the date of this
                  Agreement. For America West Holdings Corporation, Continental
                  Airlines, Inc. and Northwest Airlines Corporation, Common
                  Stock means its Class B common stock, Class B common stock and
                  Class A common stock, respectively.

         -        NASDAQ. "NASDAQ" means the National Market System of the
                  National Association of Securities Dealers, Inc. Automated
                  Quotation System.

         -        TRADING DAY. "Trading Day" means a day on which the principal
                  national securities exchange on which the shares of Common
                  Stock are listed or admitted to trading is open for the
                  transaction of business or, if the shares of Common Stock are
                  not listed or admitted to trading on any national securities
                  exchange, a Business Day.

-        DIVIDENDS OR OTHER DISTRIBUTIONS. Any dividend or other distribution
         paid by a Public Company on its Common Stock and having a record date
         that occurs during the Measurement Period will be deemed to be
         reinvested in additional shares of such Common Stock at its Closing
         Price per share (properly adjusted to take into account, if applicable,
         ex-dividend or "when issued" trading) on the day determined as follows:
         (1) if the dividend or distribution is paid during the Measurement
         Period, on the day on which the dividend or distribution is paid (or,
         if such payment day is not a Trading Day, on the Trading Day
         immediately preceding such payment day); and (2) if the dividend or
         distribution is paid after the end of the Measurement Period, on the
         last Trading Day of the Measurement Period.

         For purposes of this provision, the dividend or distribution will be
         valued as follows: (1) if the dividend or distribution is paid in cash,
         the amount of such cash; (2) if the dividend or

                                       2
<PAGE>   12

         distribution is paid in a publicly traded security, the Closing Price
         per share (properly adjusted to take into account, if applicable,
         ex-dividend or "when issued" trading) of such security on the day on
         which the dividend or distribution is deemed to be reinvested pursuant
         to the immediately preceding paragraph; and (3) if the dividend or
         distribution is paid in a security which is not publicly traded or in
         any other property, the fair market value thereof as determined by an
         independent investment banking or appraisal firm experienced in the
         valuation of such security or property selected by the Committee or, if
         no such investment banking or appraisal firm is in the judgment of the
         Committee available to make such determination, as determined by the
         Committee.

-        TIES BETWEEN DELTA AND ANOTHER PUBLIC COMPANY. If Delta and another
         Public Company have the same Total Shareholder Return Percentage,
         Delta's Total Shareholder Return Rank will be deemed to be lower than
         (i.e., superior to) the other Public Company's Total Shareholder Return
         Rank.

-        ADJUSTMENTS. If a Public Company (1) pays a dividend on its Common
         Stock in shares of Common Stock, (2) subdivides its outstanding Common
         Stock into a greater number of shares, or (3) combines its outstanding
         Common Stock into a smaller number of shares, in each case whether by
         reclassification, recapitalization or otherwise, the Committee will
         make such adjustments with respect to the computation of the Total
         Shareholder Return Percentage of that Public Company as it deems
         appropriate in the circumstances to preserve the integrity of that
         computation. For example, if, on July 1, 2002, there is a two-for-one
         split of the Common Stock of a Public Company, the variable "C" in the
         formula for calculating the Total Shareholder Return Percentage for
         that Public Company would be reduced by 50%.

-        OTHER FACTORS. If during the Measurement Period a Public Company ceases
         to exist because it is merged into another Public Company or otherwise,
         or its Common Stock ceases to be publicly traded, that Public Company
         will be ranked "10".

                                       3
<PAGE>   13

         ILLUSTRATIVE CALCULATION OF TOTAL SHAREHOLDER RETURN PERCENTAGE
<TABLE>
<CAPTION>
                  (a)                       (b)            (c)        (d)         (e)            (f)          (g)         (h)

                                          Closing
                                          Price Per                                         Shares Deemed              Total
                                          Share of     Shares at                            Acquired with              Value of
                                          Common       Beginning    Dividend     Total        Reinvested    Total       Shares
                  Date                      Stock      of Quarter  Per Share   Dividends      Dividends      Shares     (b x g)
                                                                                (c x d)        (e / b)       (c + f)
-----------------------------------------------------------------------------------------------------------------------------------
       <S>                                <C>          <C>        <C>         <C>          <C>              <C>        <C>
       20 consecutive Trading Days
       immediately preceding 7/1/00       $  40.00           --        --          --             --         1.000       $ 40.00

                9/30/00                      40.75        1.000     $0.20       $0.20           0.005        1.005         40.95

                12/31/00                    41.625        1.005      0.20        0.20           0.005        1.010         42.04

                3/31/01                      42.50        1.010      0.20        0.20           0.005        1.015         43.14

                6/30/01                      43.25        1.015      0.20        0.20           0.005        1.020         44.12

                9/30/01                     44.125        1.020      0.25        0.26           0.006        1.026         45.27

                12/31/01                     45.00        1.026      0.25        0.26           0.006        1.032         46.44

                3/31/02                      46.00        1.032      0.25        0.26           0.006        1.038         47.75

                6/30/02                     46.875        1.038      0.25        0.26           0.006        1.044         48.94

                9/30/02                      47.75        1.044      0.30        0.31           0.006        1.050         50.14

                12/31/02                     48.75        1.050      0.30        0.32           0.007        1.057         51.53

                3/31/03                      49.75        1.057      0.30        0.32           0.006        1.063         52.88

                6/30/03                      50.75        1.063      0.30        0.32           0.006        1.069         54.25

20 consecutive Trading Days including and
      immediately preceding 6/30/03          51.00           --        --          --              --        1.069         54.52
</TABLE>

                                       4
<PAGE>   14

<TABLE>

                                   <S>                                                                           <C>
                                   Return in dollars ($54.52-$40.00)                                             $14.52

                                   Total Shareholder Return Percentage ($14.52/$40.00)                             36.3%
</TABLE>

                                       5
<PAGE>   15

Certain Assumptions

         -        Quarterly cash dividends are paid on the Common Stock on March
                  31, June 30, September 30 and December 31, with the related
                  record date occurring 15 days earlier.

         -        0.069 shares of Common Stock are deemed acquired with
                  reinvested dividends in this example.

         -        The average of the daily Closing Prices per share of the
                  Common Stock for the 20 consecutive Trading Days (1)
                  immediately preceding July 1, 2000 is $40.00; and (2)
                  including and immediately preceding June 30, 2003 is $51.00.

                                       6
<PAGE>   16

                                                                       EXHIBIT D

ILLUSTRATIVE CALCULATION OF POTENTIAL PAYOUT AWARD

Assumptions

         -        Target Award is 1,100 shares

         -        Delta's DOT Performance Rank is "2" for the Measurement Period

         -        Delta's Total Shareholder Return Rank is "6" for the
                  Measurement Period

Calculation of Potential Payout Award

         -        Potential Payout Percentage. Based on Delta's assumed 2nd
                  place DOT Performance Rank and its 6th place Total Shareholder
                  Return Rank, the Potential Payout Percentage under the
                  Performance Matrix Table is 110% of the Target Award.

         -        Potential Payout Award. The Potential Payout Award in this
                  example is 110% (the Potential Payout Percentage) x 1,100 (the
                  Target Award), or 1,210 shares.

Other Factors Affecting Actual Payout Award

         -        Committee Discretion. Subject to the limitations set forth in
                  Paragraph 6 of this Agreement, the Committee may in its sole
                  discretion eliminate or reduce (to any whole number less than
                  the Potential Payout Award) the actual payout under this
                  Agreement.

<PAGE>   17

--------------------------

1        The DOT publishes this information on a monthly basis in its Air Travel
         Consumer Report. This report is intended to provide consumers with
         information regarding the quality of airline services. Information for
         a particular month is usually reported by the first week of the second
         following month.

2        The description of the DOT Performance Measures is based on DOT
         regulations and policies as in effect on the date of this agreement. If
         the DOT amends these regulations or policies during the Measurement
         Period, the description of any impacted DOT Performance Measure will be
         automatically adjusted on a prospective basis to reflect the amendment.
         For example, if, effective July 1, 2002, the DOT amends its definition
         of on-time arrivals to mean an arrival within less than 10 minutes
         (rather than within less than 15 minutes) after the scheduled arrival
         time, the description of on-time arrival performance would be modified
         for purposes of determining on-time arrival performance beginning in
         July 2002.

3        The DOT reports this information each month based on required and
         voluntary monthly on-time performance reports filed by each Airline for
         its domestic system. See 14 CFR ss.ss.234.4 and 234.7.

4        The DOT reports this information each month based on the number of
         aviation consumer complaints filed with the DOT regarding each Airline.
         See the "Consumer Complaints" section of the DOT's Air Travel Consumer
         Report.

5        The DOT reports this information each month based on monthly mishandled
         baggage reports required to be filed by each Airline. See 14 CFR
         ss.234.6.

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