Document:

Exhibit 10.4

 Exhibit 10.4 
 Performance Stock Unit (Domestic and International) 
  

			
	 Lockheed Martin Corporation

6801 Rockledge Drive, Bethesda, MD 20817

Telephone 301-897-6000
	  	

 Award Date: January 28, 2013 

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING 
 SECURITIES THAT HAVE BEEN REGISTERED UNDER THE 
 SECURITIES ACT OF 1933

 «Name» 

«Street» 
 «City»,
«State» «Zip» 
  

	Re:	Lockheed Martin Corporation 2011 Incentive Performance Award Plan: Performance Stock Unit Award (2013-2015 Performance Period) 

Dear «Call_By_Name»: 
 On behalf of the Management Development and Compensation Committee (the “Committee”) of the Board of Directors of Lockheed Martin Corporation, I am pleased to tell you that you have been granted
a Performance Stock Unit Award (“PSUs”) under the Corporation’s 2011 Incentive Performance Award Plan (the “Plan”). The purpose of this letter is to serve as the Award Agreement under such Plan and to set forth your Target
Award as well as the terms and conditions to the payment of your Award. Additional terms and conditions are set forth in the Plan and in the Prospectus relating to the Plan of which the Plan document and this Award Agreement are a part. The
Prospectus is available at http://www.benefitaccess.com. You should retain the Prospectus and the attached copy of the Plan in your records. 
 Your Award is not effective or enforceable until you properly acknowledge your acceptance of the Award by completing the electronic receipt or returning an executed copy of this Award Agreement to the
Vice President of Total Rewards and Performance Management as instructed below as soon as possible but in no event later than May 31, 2013. If you do not properly acknowledge your acceptance of this Award Agreement on or before
May 31, 2013, this Award will be forfeited. 
 Assuming prompt and proper acknowledgement of your acceptance of this
Award Agreement as described above, this Award will be effective as of the Award Date. Acceptance of this Award Agreement constitutes your consent to any action taken under the Plan consistent with its terms with respect to this Award and your
agreement to be bound by the restrictions contained in Section 18 and in Exhibit A (“Post-Employment Conduct Agreement”) and Exhibit B (“Stock Ownership Requirements”), except where prohibited by law. 

The Corporation will comply with all applicable U.S. federal, state, and local income and payroll tax withholding requirements applicable
to the PSUs, the Accrued Dividend Equivalents (‘DDEs’), and associated Stock. Please see the prospectus for the Plan for a discussion of certain material U.S. federal income and payroll tax consequences of the Award. If you are a taxpayer
in a country other than the U.S., you agree to make appropriate arrangements with the Corporation or its subsidiaries for the satisfaction of all income and employment tax withholding 

 Award Date: January 28, 2013 
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requirements, as well as social insurance contributions applicable to the PSUs, the DDEs, and associated Stock. Please see the tax summary for your country at http://www.benefitaccess.com.
If you are a taxpayer in a country other than the U.S., you represent that you will consult with your own tax advisors in connection with this Award and that you are not relying on the Corporation for any tax advice. 

Withholding taxes on Stock deliverable to you will be satisfied by means of the Corporation reducing the number of shares of Stock
delivered to you. 
 Capitalized terms used in this Award Agreement which have a special meaning either shall be defined in this
Award Agreement or if not defined in this Award Agreement shall have the meaning ascribed to the term in the Plan. The term “Target Award” as used in this Award Agreement refers only to the Target Award awarded to you under this Award
Agreement and the term “Award” refers only to PSUs set forth in this Award Agreement. References to the “Corporation” include Lockheed Martin Corporation and its Subsidiaries. Appendix A contains an index of all capitalized terms
used in this Award Agreement. 
 Section 1. Shares Awarded; Performance Period; Vesting Period; Payment of Award. 

1.1 Shares Awarded. 
 (a) Target Award. Your Target Award for the Performance Period under this Award Agreement shall be the number of whole shares of Stock identified as your Performance Stock Unit (“PSU”)
Target Award in your account at http://www.benefitaccess.com. Your Target Award shall be comprised of three pieces: 
  

	 	(i)	Your Total Stockholder Return Performance Award (approximately 50% of the number of shares in your Target Award) as described in Section 2.1(a);

  

	 	(ii)	Your ROIC Performance Award (approximately 25% of the number of shares in your Target Award) as described in Section 2.1(b); 

 

	 	(iii)	Your Cash Flow Performance Award (approximately 25% of the number of shares in your Target Award) as described in Section 2.1(c). 

The Award paid to you shall be calculated in accordance with Section 2.1. The allocation of your Award among your Total Stockholder
Return Performance Award, your ROIC Performance Award, and your Cash Flow Performance Award will be made by the Corporation based on applicable accounting principles. 
 (b) Maximum Award. Your Maximum Award for the Performance Period under this Award Agreement shall be the number of shares of Stock equal to 200% of your Target Award, subject to the provisions of
Section 2.1 and the caps contained therein. 
 (c) Accrued Dividend Equivalents (“DDEs”). Your Award shall
include a payment equal to the dividends that would have been paid to you had you owned the numbers of whole shares of Stock equal to your final Award from the Award Date until the end of the Performance Period. 

1.2 Performance Period. The “Performance Period” under this Award Agreement is the three-year performance period that
runs from January 1, 2013, until December 31, 2015. 

 Award Date: January 28, 2013 
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 1.3
Vesting Period. The “Vesting Period” under this Award Agreement is the three-year period that runs from January 28, 2013, until the later of (i) January 28, 2016, or (ii) the date on which the Committee certifies
in writing (for purposes of Section 162(m) of the Code) that an amount up to your Maximum Award has become an Award for the Performance Period. 
 1.4 Payment of Award. Your Award will be paid to you in whole shares of Stock (either in book entry or paper form). The final number of whole shares, if any, payable to you under your Award is
dependent upon the Corporation’s performance with respect to each of the metrics described in Section 3 and Section 4, the limits described in Section 2 and your continued employment with the Corporation in accordance with
Section 5. As a result of these requirements, the number of whole shares of Stock you receive at the end of the Vesting Period will be between 0% and 200% of your Target Award (based on each factor described in Section 2.1 below) and may
be smaller than your Maximum Award (or the performance factors could result in no payment in respect of your Award). Any certificates delivered to you may contain any legend the Corporation determines is appropriate under the securities laws. If you
are an Insider subject to the reporting provisions of Section 16(a) of the Securities Exchange Act of 1934 (“Exchange Act”), delivery of Stock in payment of your Award for any reason may be delayed for six months. For example, if the
delivery of the Stock would result in a nonexempt short-swing transaction under Section 16(b) of the Exchange Act, delivery will be delayed until the earliest date upon which the delivery either would not result in a nonexempt short-swing
transaction or would otherwise not result in liability under Section 16(b) of the Exchange Act. 
 Section 2. Calculation of
Award Payments. 
 2.1 End of Performance Period Calculation. Following the end of the Performance Period and
prior to any shares of Stock being issued, 
 (a) The Committee will calculate the Total Stockholder Return Performance Factor
(as described in Section 3.2) based on the Corporation’s performance during the Performance Period relative to the performance of other corporations which compose the “Peer Performance Group” as defined in Section 3.1.
Approximately one-half (50%) of the number of shares in your Target Award shall be multiplied by the Total Stockholder Return Performance Factor with the resulting number of shares to be known as the Total Stockholder Return Performance Award.
Fractional shares shall be rounded up to the next whole share. If the Corporation’s Average TSR for the three-year Performance Period is negative, the maximum Total Stockholder Return Performance Factor shall not exceed 100%. Notwithstanding
the foregoing, the number of shares of Stock you receive as your Total Stockholder Return Performance Award shall be reduced to the extent necessary so that the Fair Market Value of the shares underlying your Total Stockholder Return Performance
Award on the last day of the Performance Period does not exceed the product of (a) the Fair Market Value of a share of Stock on the Award Date, multiplied by (b) 400%, multiplied by (c) the number of shares underlying your Total
Stockholder Return Performance Award. 
 (b) The Committee will calculate the ROIC Performance Factor (as described in
Section 4.1) based on the Corporation’s ROIC during the Performance Period as compared to the projected ROIC for the Performance Period as set forth in the January 23, 2013, Committee resolution (“ROIC Target”).
Approximately one-quarter (25%) of the number of shares in your Target Award will be multiplied by the ROIC Performance Factor with the resulting number of shares to be known as the ROIC Performance Award. Fractional shares shall be rounded up
to the next whole share. Notwithstanding 

 Award Date: January 28, 2013 
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the foregoing, the number of shares of Stock you receive as your ROIC Performance Award shall be reduced to the extent necessary so that the Fair Market Value of the shares underlying your ROIC
Performance Award on the last day of the Performance Period does not exceed the product of (a) the Fair Market Value of a share of Stock on the Award Date, multiplied by (b) 400%, multiplied by (c) the number of shares underlying your
ROIC Performance Award. 
 (c) The Committee will calculate the Cash Flow Performance Factor (as described in Section 4.2)
based on the Corporation’s cumulative Cash Flow during the Performance Period as compared to the projected cumulative Cash Flow for the Performance Period as set forth the January 23, 2013, Committee resolution (“Cash Flow
Target”). Approximately one-quarter (25%) of the number of shares in your Target Award will be multiplied by the Cash Flow Performance Factor with the resulting number of shares to be known as the Cash Flow Performance Award. Fractional
shares shall be rounded up to the next whole share. Notwithstanding the foregoing, the number of shares of Stock you receive as your Cash Flow Performance Award shall be reduced to the extent necessary so that the Fair Market Value of the shares
underlying your Cash Flow Performance Award on the last day of the Performance Period does not exceed the product of (a) the Fair Market Value of a share of Stock on the Award Date, multiplied by (b) 400%, multiplied by (c) the number
of shares underlying your Cash Flow Performance Award. 
 (d) Your Total Stockholder Return Performance Award, your ROIC
Performance Award, and your Cash Flow Performance Award shall be added together to determine the total number of shares to be paid to you as your final Award. 
 You must (except as specified in Section 5) remain employed by the Corporation through the last day of the Vesting Period to receive your Award. No portion of your Award will be payable until it is
fully vested in accordance with Sections 5.1 and 5.2. 
 Section 3. Total Stockholder Return Performance Factor. 

3.1. Peer Performance Group. The Total Stockholder Return Performance Factor will be based upon the relative ranking of the
Corporation’s Average TSR (as defined in Section 3.2(a)) for the Performance Period to the Average TSR for such Period for each corporation in the “Peer Performance Group.” The “Peer Performance Group” shall consist of
the corporations which compose the Standard and Poor’s 500 Aerospace and Defense Index reported under symbol S5AERO by Bloomberg L.P. The Corporation’s Total Stockholder Return will be based on the performance of the Stock. With respect to
the corporations that make up the Standard and Poor’s 500 Aerospace and Defense Index, the Total Stockholder Return of each corporation that is taken into account in computing the Peer Performance Group Total Stockholder Return will be based on
the equity security of the relevant corporation that is used in computing the Standard and Poor’s 500 Aerospace and Defense Index. 
 3.2. Calculation of Total Stockholder Return Performance Factor. 
 (a)
Calculation of Average TSR. During the Performance Period, the Committee shall compute the Total Stockholder Return (as defined in the Plan and assuming the reinvestment of any cash dividends) for the Corporation and for each other
corporation in the Peer Performance Group for 36 periods during the Performance Period where each period begins on January 1, 2013, (based on the closing price for the stock on 

 Award Date: January 28, 2013 
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December 31, 2012) and ends on the last day of each successive calendar month in the Performance Period on which the New York Stock Exchange is open for trading. Each such Total Stockholder
Return shall be computed from data available to the public. At the end of the Performance Period, the 36 Total Stockholder Return figures for each corporation for the Performance Period will be averaged to determine each corporation’s average
Total Stockholder Return (“Average TSR”) for the Performance Period. Each corporation’s Average TSR shall be ranked among the Average TSR for each other corporation in the Peer Performance Group on a percentile basis (using the Excel
PERCENTRANK function). 
 (b) Percentage Level of Target Award. Your Total Stockholder Return Performance Factor,
expressed as a percentage, will be determined under this Section 3.2(b) (and Section 3.2(c) to the extent interpolation is necessary) based on the Percentile Ranking (as determined under Section 3.2(a)) of the Corporation’s
Average TSR for the Performance Period under the following chart: 
  

							
	 Band
	  	Percentile Ranking	 	Total Stockholder
Return Performance
Factor	 
	 One
	  	75th - 100th	 	 	200	% 
	 Two
	  	60th	 	 	150	% 
	 Three
	  	50th	 	 	100	% 
	 Four
	  	40th	 	 	50	% 
	 Five
	  	35th	 	 	25	% 
	 Six
	  	Below 35th	 	 	0	% 

 (c) Total Stockholder Return Performance Factor Interpolation. If the Percentile Ranking as
determined under Section 3.2(a) puts the Corporation over the listed Percentile Ranking for the applicable Band (other than Band One) in Section 3.2(b), your Total Stockholder Return Performance Factor under Section 3.2(b) shall be
interpolated on a linear basis. 
 If the Corporation’s Average TSR for the three-year Performance Period is negative, the
maximum Total Stockholder Return Performance Factor shall not exceed 100%. 
 Section 4. ROIC Performance Factor and Cash Flow
Performance Factor. 
 4.1 ROIC Performance Factor. The ROIC Performance Factor will be determined by comparing
the Corporation’s ROIC for the Performance Period to the ROIC Target and then identifying the ROIC Performance Factor based upon the factor associated with the difference on the following table: 

 

					
	 Change from ROIC Target
	  	ROIC Performance
Factor	 
	 Target +3 160 basis points
	  	 	200	% 
	 Target + 120 basis points
	  	 	175	% 
	 Target + 80 basis points
	  	 	150	% 
	 Target + 40 basis points
	  	 	125	% 
	 Target
	  	 	100	% 
	 Target – 10 basis points
	  	 	75	% 
	 Target – 20 basis points
	  	 	50	% 
	 Target – 30 basis points
	  	 	25	% 
	 Target – 3 40 or more basis points
	  	 	0	% 

 Award Date: January 28, 2013 
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 (a)
ROIC Definition. For purposes of this Award Agreement, “ROIC” means return on invested capital for the Performance Period calculated as (A) average annual (i) net income (excluding any charge or addition to net income
resulting solely from adjustment of deferred tax assets and liabilities for the effect of enactment of corporate tax reform and related legislation that adjusts United States federal corporate income tax rates) plus (ii) interest expense times
one minus the average of the highest marginal federal corporate income tax rates over the three-year Performance Period (“Return”), divided by (B) the average of the four year-end investment balances (beginning with December 31,
2012, year-end balance) consisting of (i) debt (including current maturities of long-term debt) plus (ii) stockholders’ equity plus the postretirement plans amounts determined at year-end as included in the Corporation’s
Statement of Stockholders’ Equity. 
 (b) ROIC Determination. Each component of ROIC and the calculation of any
postretirement plans amounts recorded in the Corporation’s Statement of Stockholders’ Equity shall be determined by the Committee in accordance with generally accepted accounting principles in the United States and be based upon the
comparable numbers reported on the Corporation’s audited consolidated financial statements or, if audited financial statements are not available for the date or period on which ROIC is being determined, the Committee shall make its
determination in a manner consistent with the historical practices used by the Corporation in determining the components of ROIC and postretirement plans amounts recorded in the Corporation’s Statement of Stockholders’ Equity for purposes
of reporting those items on its audited financial statements, as modified by this paragraph. Notwithstanding the foregoing, ROIC will be adjusted to exclude the impact of any change in accounting standards or adoption of any new accounting standards
that is required under generally accepted accounting principles in the United States and that is reported in the Corporation’s filings with the Securities and Exchange Commission as having a material effect on the Corporation’s
consolidated financial statements. ROIC, as included in the 2013 Long Range Plan, and the change in ROIC for purposes of the ROIC Performance Factor will be determined in accordance with this Section 4.1(b). 

4.2 Cash Flow Performance Factor. The Cash Flow Performance Factor will be determined by comparing the Corporation’s
cumulative Cash Flow during the Performance Period to the Cash Flow Target, and then identifying the Cash Flow Performance Factor based upon the factor associated with the change from the Cash Flow Target on the following table: 

 

					
	 Change From Cash Flow Target
	  	Cash Flow Performance
Factor	 
	 Target + 3$2.0B or more
	  	 	200	% 
	 Target + $1.5B
	  	 	175	% 
	 Target + $1.0B
	  	 	150	% 
	 Target + $0.5B
	  	 	125	% 
	 Target
	  	 	100	% 
	 Target – $0.2B
	  	 	75	% 
	 Target – $0.5B
	  	 	50	% 
	 Target – $0.7B
	  	 	20	% 

 Award Date: January 28, 2013 
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 (a)
Cash Flow Definition. For purposes of this Award Agreement, “Cash Flow” means net cash flow from operations but not taking into account: (i) the aggregate difference between the amount forecasted in the Corporation’s 2013
Long Range Plan to be contributed by the Corporation to the Corporation’s defined benefit pension plans during the Performance Period and the actual amounts contributed by the Corporation during the Performance Period; or (ii) any tax
payments or tax benefits during the Performance Period associated with the divestiture of business units, other than tax payments or tax benefits that were included in the Corporation’s 2013 Long Range Plan. 

(b) Cash Flow Determination. Cash Flow shall be determined by the Committee based upon the comparable numbers reported on the
Corporation’s audited consolidated financial statements or, if audited financial statements are not available for the period for which Cash Flow is being determined, the Committee shall determine Cash Flow in a manner consistent with the
historical practices used by the Corporation in determining net cash provided by operating activities as reported in its audited consolidated statement of cash flows, in either case as modified by this paragraph. 

4.3 Interpolation of ROIC and Cash Flow Metrics. If the change in ROIC or Cash Flow falls between two numbers listed in the
applicable table in Section 4.1 or 4.2, the appropriate factor will be interpolated on a linear basis. Notwithstanding the foregoing, the ROIC Performance Factor will always be zero if the ROIC for the Performance Period falls short of the ROIC
Target by 40 basis points or more and the Cash Flow Performance Factor will always be zero if the aggregate Cash Flow for the Performance Period falls short of the Cash Flow target by $1.0 billion or more. 

Section 5. Payment of Award. 
 5.1. Employment Requirement. 
 (a) General Rule. In order to be
eligible to receive payment of your Award as determined under Section 2.1(d), you must accept this Award Agreement and remain employed by the Corporation through the last day of the Vesting Period. Except as provided below or where prohibited
by law, if your employment as an Employee terminates during the Vesting Period, you shall forfeit your right to receive all or any part of your Award. If you are on Corporation-approved leave of absence at any point during the Vesting Period, for
purposes of this Award Agreement, you will be considered to still be in the employ of the Corporation, unless otherwise provided in an agreement between you and the Corporation. 

 Award Date: January 28, 2013 
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 (b)
Exceptions. Notwithstanding Section 5.1(a), if the Committee determines: 
 (1) that your employment as an Employee
terminated, as a result of your death, Divestiture, Total Disability or Retirement (each as defined in Section 5.1(c)) or 

(2) that the Corporation terminated your employment involuntarily after July 28, 2013 as a result of a layoff, including through a
voluntary layoff program that constitutes a window program under Section 409A of the Code, 
 you shall vest in a fraction
of your Award and the DDEs with respect to such fraction. The numerator of such fraction shall equal the number of days in the Vesting Period before your employment as an Employee terminated, and the denominator shall equal the total number of days
in the Vesting Period. The Committee shall have complete and absolute discretion to make the determinations called for under this Section 5.1(b), and all such determinations shall be binding on you and on any person who claims all or any part
of your Award on your behalf as well as on the Corporation. If you terminate employment during the Vesting Period but are eligible to receive a portion of your Award as a result of an exception under this Section 5.1(b), payment of such portion
of your Award and DDEs shall be in full satisfaction of all rights you have under this Award Agreement. 
 (c) Special
Definitions. For purposes of this Award Agreement: 
 (1) Your employment as an Employee shall be treated as terminating
because of a “Total Disability” on the date you commence receiving a benefit under the Corporation’s long-term disability plan in which you participate, or if you are not enrolled in the Corporation’s long-term disability plan,
the date on which long-term disability benefits would commence under the plan under which you would have been covered, had you enrolled, using the standards set forth in that plan; 

(2) Your employment as an Employee shall be treated as terminating as a result of Divestiture if the Corporation divests all or
substantially all of a business operation of the Corporation and such divestiture results in the termination of your employment with the Corporation and a transfer of such employment to the other party in the Divestiture. A “Divestiture”
shall mean a transaction which results in the transfer of control of the business operation to any person, corporation, association, partnership, joint venture, limited liability company or other business entity of which less than 50% of the voting
stock or other equity interests are owned or controlled by the Corporation; and 
 (3) Your employment as an Employee shall be
treated as terminating because of “Retirement” if the effective date of your termination of employment is after July 28, 2013 and (i) you reach age 65 with six months of service in the Vesting Period, or (ii) you reach age
55 and have (at the time of your termination) completed at least ten years of service with the Corporation. 

 Award Date: January 28, 2013 
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5.2. Payment Rules. 
 (a) Vesting. If you are eligible to receive an Award under Section 5.1(a) or a fraction of an Award under Section 5.1(b), your Award shall vest on last day of the Vesting Period.

 (b) Method of Payment. Your Award shall be paid in whole shares of Stock. DDEs on the shares underlying your Award, if
any, shall be paid in cash. In the event of your death, your payment will be made to your estate if you do not have a properly completed beneficiary designation form on file with the Vice President of Total Rewards and Performance Management.

 (c) Timing of Payment. You shall have the right to receive your Award plus DDEs as soon as administratively practicable
following the Vesting Period, but no later than the earlier of (i) 90 days after the date on which the Committee certifies in writing (for purposes of Section 162(m) of the Code) that your Target Award has become an Award for the
Performance Period, or (ii) March 15 immediately following such certification date. 
 5.3. Cutback.

 (a) Limit on Share-Based Awards. Any payment called for under Section 5.2 will be reduced to the extent that such
payment together with payments attributable to any other Share-Based Awards that are granted during 2013 as Performance-Based Awards exceeds 1,000,000 shares of Stock. Amounts in excess of 1,000,000 shares shall be forfeited. Any DDEs on forfeited
shares shall also be forfeited. 
 (b) Changes in Capitalization. In the case of an event described in Section 7 of
the Plan during the Performance Period or Vesting Period, your Award will be adjusted in the same manner as if you held actual shares of Stock. 

Section 6. No Assignment – General Creditor Status. 
 You shall have no right to assign any interest you might have in all or any part of the Target Award or Award which has been granted to you under this Award Agreement and any attempt to do so shall be
null and void and shall have no force or effect whatsoever. Furthermore, all payments called for under this Award Agreement shall be made from the Corporation’s general assets, and your right to payment from the Corporation’s general
assets shall be the same as the right of a general and unsecured creditor of the Corporation. Until a share of Stock is delivered to you, you generally will not have the rights and privileges of a stockholder. In particular, you will not have the
right to vote your PSUs on any matter put to the stockholders of the Corporation; you may not sell, transfer, assign, pledge, use as collateral or otherwise dispose of or encumber PSUs; and you will not have the right to receive any dividends paid
to stockholders or dividend equivalents on the PSUs. 
 Section 7. Plan. 

This Award Agreement shall be subject to all of the terms and conditions set forth in the Plan. 

 Award Date: January 28, 2013 
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 Section 8.
Change in Control. 
 8.1. Change in Control during the Performance Period. 

(a) In the event of a consummation of a Change in Control during the Performance Period, your Target Award (and DDEs) will become vested
(i) on the effective date of the Change in Control if the PSUs are not assumed, continued, or equivalent restricted securities are not substituted for your PSUs by the Corporation or its successor, or (ii) if the PSUs are assumed,
continued or substituted by the Corporation or its successor, on the effective date of your involuntary termination by the Corporation other than for Cause (not including death or Total Disability) or your voluntary termination with Good Reason, in
either case, within the 24-month period following the consummation of the Change in Control; provided that any such termination is also a “separation from service” under Code section 409A. 

(b) In the event the PSUs vest in accordance with this Section 8.1 (whether immediately following the Change in Control or following
your termination), the shares of Stock or equivalent substituted securities in which you have become vested and DDEs shall be delivered to you within 14 days of the date on which you become vested. 

8.2. Change in Control during the Vesting Period. In the event of a consummation of a Change in Control after the end of the
Performance Period but during the Vesting Period, you will vest in your Target Award (and DDEs) (i) on the effective date of the Change in Control if the PSUs are not assumed or continued or equivalent restricted securities are not substituted
for your PSUs by the Corporation or its successor, or (ii) on the on the earlier of the end of the Vesting Period or the effective date of your termination if the PSUs are assumed, continued or substituted for, upon your involuntary termination
by the Corporation other than for Cause (not including death or Total Disability) or your voluntary termination with Good Reason, in either case, prior to the end of the Vesting Period. In the event the PSUs vest in accordance with this
Section 8.2 (whether immediately following the Change in Control or following your termination), the shares of Stock or equivalent substituted securities in which you have become vested and DDEs shall be delivered to you within 14 days of the
date on which you become vested. 
 8.3 Special Definitions. For purposes of this Award Agreement: 

(a) “Cause” shall mean either of the following: 
  

	 	(i)	Conviction for an act of fraud, embezzlement, theft or other act constituting a felony (other than traffic-related offenses or as a result of vicarious liability); or

  

	 	(ii)	Willful misconduct that is materially injurious to the Corporation’s financial position, operating results or reputation; provided, however that no act or failure
to act shall be considered “willful” unless done, or omitted to be done, by you (a) in bad faith; (b) for the purpose of receiving an actual improper personal benefit in the form of money, property or services; or (c) in
circumstances where you had reasonable cause to believe that the act or failure to act was unlawful. 

 (b)
“Good Reason” shall mean, without your express written consent, the occurrence of any one or more of the following: 
  

	 	(i)	A material and substantial reduction in the nature or status or your authority or responsibilities; 

 Award Date: January 28, 2013 
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	 	(ii)	A material reduction in your annualized rate of base salary; 

  

	 	(iii)	A material reduction in the aggregate value of your level of participation in any short or long term incentive cash compensation plan, employee benefit or retirement
plan or compensation practices, arrangements, or policies; 

  

	 	(iv)	A material reduction in the aggregate level of participation in equity-based incentive compensation plans; or 

 

	 	(v)	Your principal place of employment is relocated to a location that is greater than 50 miles from your principal place of employment on the date the Change in Control is
consummated. 

 Your continued employment following an event that would constitute a basis for
voluntary termination with Good Reason shall not constitute Good Reason if you consent to, or waive your rights with respect to any circumstances constituting Good Reason. In addition, the occurrence of an event described in (i) through
(v) shall constitute the basis for voluntary termination for Good Reason only if you provide notice of your intent to terminate employment within 90 days of the first occurrence of such event and the Corporation has had at least 30 days from
the date on which such notice is provided to cure such occurrence. If you do not terminate employment for Good Reason within 180 days after the first occurrence of the applicable grounds, then you will be deemed to have waived your right to
terminate for Good Reason with respect to such grounds. 
 8.4. Special Rule. Notwithstanding Section 8.1 or 8.2, if
a payment in accordance with those provisions would result in a nonexempt short-swing transaction under Section 16(b) of the Exchange Act, then the date of distribution to you shall be delayed until the earliest date upon which the distribution
either would not result in a nonexempt short-swing transaction or would otherwise not result in liability under Section 16(b) of the Exchange Act. 
 Section 9. Amendment and Termination. 
 As provided in
Section 9 of the Plan, the Board of Directors may at any time amend, suspend or discontinue the Plan and the Committee may at any time amend this Award Agreement. Notwithstanding the foregoing, no such action by the Board of Directors or the
Committee shall amend Sections 1, 2, 3, 4, or 5 in a manner adverse to you or reduce the amount payable hereunder in a material manner without your written consent. For this purpose, a change in the amount payable hereunder that occurs solely by
reason of a change in the date or form of payment shall in no case be treated as a reduction prohibited by this Section 9. Thus, for example, if an amount payable by reason of Section 8 is delayed by an amendment to this Award Agreement or
other action undertaken to comply with Section 409A of the Code and the amount payable is reduced solely by reason of a corresponding delay in the date of valuation of a share of Stock, such a change shall not be treated as a reduction
prohibited by this Section 9. This Section 9 shall be construed and applied so as to permit the Committee to amend this Award Agreement at any time in any manner reasonably necessary or appropriate in order to comply with the requirements
of Section 16 of the Exchange Act and of Section 409A of the Code, including amendments regarding the timing and form of payments hereunder. 

 Award Date: January 28, 2013 
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 Section 10.
Data Privacy Consent For Employees Located Outside Of The United States. 
 You hereby explicitly and unambiguously
consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Award Agreement by and among the Corporation for the exclusive purpose of implementing, administering and managing your
participation in the Plan. 
 You understand that the Corporation holds certain personal information about you, including, but
not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares or directorships held in the Corporation, details of all awards or any
other entitlement to shares awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the purpose of implementing, administering and managing the Plan (“Data”). You understand that Data may be transferred to any
third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in your country or elsewhere, and that the recipient’s country may have different data privacy laws and protections
than your country. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting your local human resources representative. You authorize the recipients to receive, possess, use, retain
and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with
whom the Corporation may elect to administer the settlement of any award. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that you may, at any
time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human
resources representative. You understand, however, that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you
understand that you may contact your local human resources representative. 
 Section 11. No Assurance of Employment; No Right to an
Award; Value of Award. 
 Nothing contained in the Plan or in this Award Agreement shall confer upon you any right to
continue in the employ or other service of the Corporation or constitute any contract (of employment or otherwise) or limit in any way the right of the Corporation to change your compensation or other benefits or to terminate your employment with or
without cause. You acknowledge and agree as follows: 
 (a) the Plan is discretionary in nature and that the Committee may amend,
suspend, or terminate it at any time; 
 (b) the grant of the PSUs are voluntary and occasional and does not create any
contractual or other right to receive future grants of any PSUs, or benefits in lieu of any PSUs even if PSUs have been granted repeatedly in the past; 

 Award Date: January 28, 2013 
  Page
 13
 
  
 (c)
all determinations with respect to such future PSUs, if any, including but not limited to the times when PSUs shall be granted or when PSUs shall vest, will be at the sole discretion of the Committee; 

(d) your participation in the Plan is voluntary; 
 (e) the value of the PSUs are an extraordinary item of compensation, which is outside the scope of your employment contract (if any), except as may otherwise be explicitly provided in your employment
contract; 
 (f) the PSUs are not part of normal or expected compensation or salary for any purpose, including, but not limited
to, calculating termination, severance, resignation, redundancy, end of service, or similar payments, or bonuses, long-service awards, pension or retirement benefits; 
 (g) the PSUs shall expire upon termination of your employment for any reason except as may otherwise be explicitly provided in the Plan and this Award Agreement; 

(h) the future value of the shares is unknown and cannot be predicted with certainty; and 

(i) no claim or entitlement to compensation or damages arises from the termination of the PSUs or diminution in value of the PSUs or Stock
and you irrevocably release the Corporation and your employer from any such claim that may arise. 
 Section 12. Conflict.

 In the event of a conflict between this Award Agreement and the Plan, the Plan document shall control. 

Section 13. Compliance with Section 409A of the Code. 
 Notwithstanding any other provision of this Award Agreement to the contrary, to the extent that this Award Agreement constitutes a nonqualified deferred compensation plan to which Section 409A of the
Code applies, payments under this Award Agreement shall be made at a time and in a manner that satisfies the requirements of Section 409A of the Code and guidance of general applicability issued thereunder, including the provisions of
Section 409A(a)(2)(B)(i) of the Code to the extent distributions to any specified employee are required to be delayed six months, and all terms shall be interpreted in accordance with Section 409A of the Code. If any payment that would
otherwise be made under this Award Agreement is required to be delayed by reason of this Section 13, such payment shall be made at the earliest date permitted by Section 409A of the Code. If a payment under this Award constitutes
nonqualified deferred compensation under Section 409A of the Code, no payment due upon termination of employment shall be made unless the termination of employment is a “separation from service” as defined in Section 409A of the
Code and accompanying regulations. 
 Section 14. Post-Employment Covenants & Stock Ownership Requirements.

 Except where prohibited by law, by accepting this Award Agreement through the procedure described above, you agree to the
terms of the Post-Employment Covenants contained in Exhibit A to this Award Agreement and you acknowledge receipt of the Stock Ownership Requirements (“Ownership Requirements”) attached as Exhibit B to this Award Agreement and agree to
comply with such Ownership Requirements.). 

 Award Date: January 28, 2013 
  Page
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 Section 15.
English Language. 
 You have received the terms and conditions of this Award Agreement and any other related
communications, and you consent to having received these documents in English. If you have received this Award Agreement or any other documents related to the Plan translated into a language other than English, and if the translated version is
different from the English version, the English version will control. 
 Section 16. Currency Exchange Risk. 

If your functional currency is not the U.S. dollar, you agree and acknowledge that you will bear any and all risk associated with the
exchange or fluctuation of currency associated with the Award (the “Currency Exchange Risk”). You waive and release the Corporation and its subsidiaries from any potential claims arising out of the Currency Exchange Risk. 

Section 17. Exchange Control Requirements. 
 You agree and acknowledge that you will comply with any and all exchange control requirements applicable to the Award and any resulting funds including, without limitation, reporting or repatriation
requirements. 
 Section 18. Execution; Electronic Delivery.  

By executing this Award Agreement, you consent to receive copies of the Prospectus applicable to this Award from this internet site
(http://www.benefitaccess.com) as well as to electronic delivery of the Corporation’s annual report on Form 10-K, annual proxy and quarterly reports on Form 10-Q. This consent can only be withdrawn by written notice to the Vice President of
Total Rewards and Performance Management at the address noted above. The Company may, in its sole discretion, decide to deliver any documents related to the Award under the Plan or future Awards that may be awarded under the Plan by electronic means
or request your consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through any on-line or electronic system established and maintained by
the Corporation or another third party designated by the Corporation. 
 No Award is enforceable until you properly acknowledge
your acceptance by completing the electronic receipt or returning an executed copy of this Award Agreement to the Vice President of Total Rewards and Performance Management as soon as possible but in no event later than May 31, 2013. Acceptance
of this Award Agreement must be made only by you personally or by a person acting pursuant to a power of attorney in the event of your inability to acknowledge your acceptance due to your disability or deployment in the Armed Forces (and not by your
estate, your spouse or any other person) and constitutes your consent to any action taken under the Plan consistent with its terms with respect to this Award. The Committee has authorized electronic means for the delivery and acceptance of this
Award Agreement. If you desire to accept this Award, you must acknowledge your acceptance and receipt of this Award Agreement, either electronically or by signing and returning a copy of this letter on or before May 31, 2013 as follows:

  

	 	(a)	Electronic Acceptance: Go to http://www.benefitaccess.com 

  

	 	(b)	By Mail: Mr. David Filomeo, Vice President of Total Rewards and Performance Management, Lockheed Martin Corporation, Mail Point 123, 6801 Rockledge Drive, Bethesda
MD 20817 

 Award Date: January 28, 2013 
  Page
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Assuming prompt and proper acknowledgment of this Award Agreement as described, this Award will be effective as of the Award Date.

  

	
	Sincerely,
	
	David A. Filomeo
	Vice President
	Total Rewards and Performance Management

  

							
	Enclosures	 		 		 	
	ACKNOWLEDGEMENT:	 		 		 	
				
	  
	 		 	  
	 	
	Signature	 		 	Date	 	
				
	  
	 		 		 	
	Print or type name	 		 		 	

 Award Date: January 28, 2013 
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Appendix A 

Capitalized Terms 
  

			
	Average TSR	  	§ 3.2(a)
	Award	  	6th ¶
	Award Date	  	Header
	Cash Flow	  	§ 4.2(a)
	Cash Flow Performance Award	  	§ 2.1(c)
	 Cash Flow Performance Factor

Cash Flow Target
	  	 § 4.2
 §
2.1(c)

	Cause	  	§ 8.3(a)
	Change in Control	  	Plan
	Code	  	Plan
	Committee	  	1st ¶
	Corporation	  	6th ¶
	CSC	  	§ 3.1
	DDE	  	§ 1.1(c)
	Divestiture	  	§ 5.1(c)
	Employee	  	Plan
	Exchange Act	  	Plan
	Fair Market Value	  	Plan
	Good Reason	  	§ 8.3(b)
	Insider	  	Plan
	Maximum Award	  	§ 1.1(b)
	Peer Performance Group	  	§ 3.1
	Performance-Based Award	  	Plan
	Performance Period	  	§ 1.2
	Plan	  	1st ¶
	PSU	  	§ 1.1(a)
	Retirement	  	§ 5.1(c)
	Return	  	§ 4.1(a)
	ROIC	  	§ 4.1(a)
	ROIC Performance Award	  	§ 2.1(b)
	 ROIC Performance Factor
 ROIC
Target
	  	 § 4.1
 §
2.1(b)

	Stock	  	Plan
	Target Award	  	6th ¶§ 1.1
	Total Disability	  	§ 5.1(c)
	Total Stockholder Return	  	Plan; § 3.2(a)
	Total Stockholder Return Performance Award	  	§ 2.1(a)
	Total Stockholder Return Performance Factor	  	§ 3.1; § 3.2
	Vesting Period	  	§ 1.3

 Award Date: January 28, 2013 
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Exhibit A 
 Post
Employment Conduct Agreement 
 (PSU Grant) 
 This Post Employment Conduct Agreement (this “PECA”) attached as Exhibit A to the Award Agreement with an Award Date of January 28, 2013 (the “Award Agreement”) is entered into in
consideration of, among other things, the grant of performance restricted stock units to me under the Award Agreement (the “PSUs”) pursuant to the Lockheed Martin Corporation 2011 Incentive Performance Award Plan (the “Plan”).
References to the “Corporation” shall include Lockheed Martin Corporation and its Subsidiaries. By accepting the PSUs, I agree as follows: 
 1. Restrictions Following Termination of Employment. 
 (a) Covenant Not
To Compete – Without the express written consent of the “Required Approver” (as defined in Section 6), during the one-year period (or two-year period for Elected Officers) following the date of my termination of employment
(the “Termination Date”) with the Corporation, I will not, directly or indirectly, be employed by, provide services to, or advise a “Restricted Company” (as defined in Section 6), whether as an employee, advisor, director,
officer, partner or consultant, or in any other position, function or role that, in any such case, 
  

	 	(i)	oversees, controls or affects the design, operation, research, manufacture, marketing, sale or distribution of “Competitive Products or Services” (as defined
in Section 6) of or by the Restricted Company, or 

  

	 	(ii)	would involve a substantial risk that the “Confidential or Proprietary Information” (as defined in Section 1(c)) of the Corporation (including but not
limited to technical information or intellectual property, strategic plans, information relating to pricing offered to the Corporation by vendors or suppliers or to prices charged or pricing contemplated to be charged by the Corporation, information
relating to employee performance, promotions or identification for promotion, or information relating to the Corporation’s cost base) could be used to the disadvantage of the Corporation. 

Section 1(a)(i) and (ii) shall not apply to residents of California and individuals who are employed by the Corporation in an attorney
position, as determined in the discretion of the Corporation’s Senior Vice President, General Counsel, and Corporate Secretary or the General Tax Counsel, as applicable. In lieu of Section 1(a)(i) and (ii) and Section 1(b), the
following provisions shall apply to individuals who are employed by the Corporation in an attorney position, as determined in the discretion of the Corporation’s Senior Vice President, General Counsel, and Corporate Secretary or the General Tax
Counsel, as applicable: 
  

	 	(iii)	 Post-employment Activity As a Lawyer – I acknowledge that as counsel to Lockheed Martin Corporation (the “Corporation”), I owe ethical
and fiduciary obligations to the Corporation and that at least some of these obligations will continue even after the date of my termination of employment (“Termination Date”) with the Corporation. I agree that after my Termination Date I
will 

 Award Date: January 28, 2013 
  Page
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comply fully with all applicable ethical and fiduciary obligations that I owe to the Corporation. To the extent permitted by applicable law, including but not limited to any applicable rules
governing attorney conduct, I agree that I will not 

  

	 	(a)	Represent any client adversely to the Corporation; 

  

	 	(b)	Reveal to any third party any Confidential or Proprietary information learned by me during the course of my employment with the Corporation except for information that
is or becomes generally known; 

  

	 	(c)	Encourage or solicit any present or future agents or employees of the Corporation to terminate their employment for the purpose of competing with the Corporation; or

  

	 	(d)	Whether as a lawyer or non-lawyer, accept a position (whether as agent, employer, part or sole owner or in any other capacity) with any person or entity whose interests
are adverse to the Corporation’s interests if that adverse position is related in any way to my present or past work with the Corporation. 

 (b) Non-Solicit – Without the express written consent of the Required Approver, during the one-year period (two-year period for Elected Officers) following the Termination Date, I will not
(i) interfere with any contractual relationship between the Corporation and any customer, supplier, distributor or manufacturer of or to the Corporation to the detriment of the Corporation or (ii) induce or attempt to induce any person who
is an employee of the Corporation to perform work or services for any entity other than the Corporation. This Section 1(b) shall not apply to an individual who is employed by the Corporation as an attorney. 

(c) Protection of Proprietary Information – Except to the extent required by law, following my Termination Date, I will have
a continuing obligation to comply with the terms of any non-disclosure or similar agreements that I signed while employed by the Corporation committing to hold confidential the “Confidential or Proprietary Information” (as defined below)
of the Corporation or any of its affiliates, subsidiaries, related companies, joint ventures, partnerships, customers, suppliers, partners, contractors or agents, in each case in accordance with the terms of such agreements. I will not use or
disclose or allow the use or disclosure by others to any person or entity of Confidential or Proprietary Information of the Corporation or others to which I had access or that I was responsible for creating or overseeing during my employment with
the Corporation. In the event I become legally compelled (by deposition, interrogatory, request for documents, subpoena, civil investigative demand or otherwise) to disclose any proprietary or confidential information, I will immediately notify the
Corporation’s Senior Vice President, General Counsel and Corporate Secretary as to the existence of the obligation and will cooperate with any reasonable request by the Corporation for assistance in seeking to protect the information. All
materials to which I have had access, or which were furnished or otherwise made available to me in connection with my employment with the Corporation shall be and remain the property of the Corporation. For purposes of this PECA, “Confidential
or Proprietary Information” means Proprietary Information within the meaning of CPS 710 (a copy of which has been made available to me), including but not limited to information that a person or entity desires to protect from unauthorized
disclosure to third parties that can provide the person or entity with a business, technological, or economic advantage over its competitors, or which, if known or used by third parties or if used by the person’s or entity’s employees or
agents in an unauthorized manner, might be detrimental to the person’s or entity’s interests. Confidential or Proprietary Information may include, but is not limited to: 

 

	 	(i)	existing and contemplated business, marketing and financial business information such as business plans and methods, marketing information, cost estimates, forecasts,
financial data, cost or pricing data, bid and proposal information, customer identification, sources of supply, contemplated product lines, proposed business alliances, and information about customers or competitors, or 

 

	 	(ii)	existing or contemplated technical information and documentation pertaining to technology, know how, equipment, machines, devices and systems, computer hardware and
software, compositions, formulas, products, processes, methods, designs, specifications, mask works, testing or evaluation procedures, manufacturing processes, or production processes. 

 Award Date: January 28, 2013 
  Page
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 (d)
No disparagement – Following the Termination Date, I will not make any statements, whether verbal or written, that disparage or reasonably may be interpreted to disparage the Corporation or its stockholders, directors, officers,
employees, agents, attorneys, representatives, technology, products or services with respect to any matter whatsoever. 
 (e)
Cooperation in Litigation and Investigations – Following the Termination Date, I will, to the extent reasonably requested, cooperate with the Corporation in any pending or future litigation (including alternative dispute resolution
proceedings) or investigations in which the Corporation or any of its subsidiaries or affiliates is a party or is required or requested to provide testimony and regarding which, as a result of my employment with the Corporation, I reasonably could
be expected to have knowledge or information relevant to the litigation or investigation. Notwithstanding any other provision of this PECA, nothing in this PECA shall affect my obligation to cooperate with any governmental inquiry or investigation
or to give truthful testimony in court. 
 2. Consideration and Acknowledgement. I acknowledge and agree that the benefits and
compensation opportunities being made available to me under the Award Agreement are in addition to the benefits and compensation opportunities that otherwise are or would be available to me in connection with my employment by the Corporation and
that the grant of the PSUs is expressly made contingent upon my agreements with the Corporation set forth in this PECA. I acknowledge that the scope and duration of the restrictions in Section 1 are necessary to be effective and are fair and
reasonable in light of the value of the benefits and compensation opportunities being made available to me under the Award Agreement. I further acknowledge and agree that as a result of the high level executive and management positions I hold with
the Corporation and the access to and extensive knowledge of the Corporation’s Confidential or Proprietary Information, employees, suppliers and customers, these restrictions are reasonably required for the protection of the Corporation’s
legitimate business interests. 
 3. Remedies For Breach of Section 1; Additional Remedies of Clawback and Recoupment.  

(a) If I become (or currently am) an Insider (as defined in the Plan) or receive a PSU Award, I agree, upon demand by the Corporation, to
forfeit, return or repay to the Corporation the “Benefits and Proceeds” (as defined below) in the event any of the following occur: 
  

	 	(i)	I breach any of the covenants or agreements in Section 1; 

 Award Date: January 28, 2013 
  Page
 20
 
  
  

	 	(ii)	The Corporation determines that either (a) my intentional misconduct or gross negligence, or (b) my failure to report another person’s intentional
misconduct or gross negligence of which I had knowledge during the period I was employed by the Corporation, contributed to the Corporation having to restate all or a portion of its financial statements filed for any period with the Securities and
Exchange Commission; 

  

	 	(iii)	The Corporation determines that I engaged in fraud, bribery or any other illegal act or that my intentional misconduct or gross negligence (including the failure to
report the acts of another person of which I had knowledge during the period I was employed by the Corporation) contributed to another person’s fraud, bribery or other illegal act, which in any such case adversely affected the
Corporation’s financial position or reputation; or 

  

	 	(iv)	Under such other circumstances specified by final regulation issued by the Securities and Exchange Commission entitling the Corporation to recapture or clawback
“Benefits and Proceeds” (as defined below). 

 (b) The remedy provided in Section 3(a) shall not be
the exclusive remedy available to the Corporation for any of the conduct described in Section 3(a) and shall not limit the Corporation from seeking damages or injunctive relief. 

(c) For purposes of this Section 3, “Benefits and Proceeds” means (i) to the extent I own Stock issued in respect of
vested PSUs, such Stock; (ii) to the extent I no longer own the shares of Stock of the Corporation issued in respect of the PSUs, cash in an amount equal to the greater of (x) the value of such Stock on the date the associated PSUs vested
(which, unless otherwise determined by the Management Development and Compensation Committee of the Board of Directors of the Corporation, shall be equal to the closing price of the shares of Common as finally reported by the New York Stock Exchange
on such date), and (y) the proceeds received in connection with the disposition of such Stock; and (ii) to the extent I have not earned the PSUs fully, all of my remaining rights, title or interest in my Award and any accrued dividend
equivalents with respect thereto. 
 4. Injunctive Relief. I acknowledge that the Corporation’s remedies at law may be inadequate to
protect the Corporation against any actual or threatened breach of the provisions of Section 1 or the conduct described in Section 3(a), and, therefore, without prejudice to any other rights and remedies otherwise available to the
Corporation at law or in equity (including but not limited to, an action under Section 3(a)), the Corporation shall be entitled to injunctive relief in its favor and to specific performance without proof of actual damages and without the
requirement of the posting of any bond or similar security. 
 5. Invalidity; Unenforceability. It is the desire and intent of the
parties that the provisions of this PECA shall be enforced to the fullest extent permissible. Accordingly, if any particular provision of this PECA is adjudicated to be invalid or unenforceable, this PECA shall be deemed amended to delete the
portion adjudicated to be invalid or unenforceable, such deletion to apply only with respect to the operation of this provision in the particular jurisdiction in which such adjudication is made. 

 Award Date: January 28, 2013 
  Page
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 6.
Definitions. Capitalized terms not defined in this PECA have the meaning given to them in the Plan, as applicable. For purposes of this PECA, the following terms have the meanings given below: 

(a) “Restricted Company” means The Boeing Company, General Dynamics Corporation, Northrop Grumman Corporation, the Raytheon
Company, United Technologies Corporation, Honeywell International Inc., BAE Systems Inc., L-3 Communications Corporation, the Harris Corporation, Thales, EADS North America and (i) any entity directly or indirectly controlling, controlled by,
or under common control with any of the foregoing, and (ii) any successor to all or part of the business of any of the foregoing as a result of a merger, reorganization, consolidation, spin-off, split-up, acquisition, divestiture, or similar
transaction. 
 (b) “Competitive Products or Services” means products or services that compete with, or are an
alternative or potential alternative to, products sold or services provided by a subsidiary, business area, division or operating unit or business of the Corporation as of the Termination Date and at any time within the two-year period ending on the
Termination Date; provided, that, (i) if I had direct responsibility for the business of, or function with respect to, a subsidiary, or for a business area, division or operating unit or business of the Corporation at any time within the
two-year period ending on the Termination Date, Competitive Products or Services includes the products so sold or the services so provided during that two-year period by the subsidiary, business area, division or operating unit of the Corporation
for which I had responsibility, and (ii) if I did not have direct responsibility for the business of, or function with respect to, a subsidiary, or for a business area, division or operating unit or business of the Corporation at any time
within the two-year period ending on the Termination Date, Competitive Products or Services includes the products so sold or the services so provided by a subsidiary, business area, division or operating unit of the Corporation for which I had
access (or was required or permitted such access in the performance of my duties or responsibilities with the Corporation) to Confidential or Proprietary Information of the Corporation at any time during the two-year period ending on the Termination
Date. 
 (c) “Required Approver” means: 

 

	 	(i)	with respect to the Chief Executive Officer and President, the Management and Development Committee of the Corporation’s Board of Directors;

  

	 	(ii)	with respect to an Elected Officer, the Corporation’s Chief Executive Officer and President; or 

 

	 	(iii)	with respect to all other employees, the Senior Vice President, Human Resources of the Corporation. 

(d) “Elected Officer” means an officer of the Corporation who was elected to his or her position by the Corporation’s
Board of Directors. 
 7. Miscellaneous. 
 (a) The Plan, the Award Agreement (with Exhibit B) and this PECA constitute the entire agreement governing the terms of the award of the PSUs to me. 

 Award Date: January 28, 2013 
  Page
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 (b)
This PECA shall be governed by Maryland law, without regard to its provisions governing conflicts of law. Any enforcement of, or challenge to, this PECA may only be brought in the Circuit Court of Maryland or the United States District Court for the
District of Maryland. Both parties consent to the proper jurisdiction and venue of the Circuit Court of Maryland and the United States District Court for the District of Maryland for the purpose of enforcing or challenging this PECA. 

(c) This PECA shall inure to the benefit of the Corporation’s successors and assigns and may be assigned by the Corporation without
my consent. 
 (d) This PECA provides for certain obligations on my part following the Termination Date and shall not, by
implication or otherwise, affect in any way my obligations to the Corporation during the term of my employment by the Corporation, whether pursuant to written agreements between the Corporation and me, the provisions of applicable Corporate policies
that may be adopted from time to time or applicable law or regulation. 
 This PECA is effective as of the acceptance by me
of the award of PSU under the Award Agreement and is not contingent on the vesting of my PSU Award. 

 Award Date: January 28, 2013 
  Page
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Exhibit B 
 Stock
Ownership Requirements 
 Lockheed Martin’s Stock Ownership Requirements for Key Employees apply to all senior level positions of Vice
President and above. This reflects the expectations of our major shareholders that management demonstrate its confidence in Lockheed Martin through a reasonable level of personal share ownership. This practice is consistent with other major U.S.
corporations which link some portion of personal financial interests of key employees with those of shareholders. 
 Stock Ownership
Requirements 
  

			
	 Title
	  	 Annual Base Pay Multiple

	 Executive Chairman of the Board of Directors
	  	6 times
	 Chief Executive Officer & President
	  	6 times
	 Chief Operating Officer
	  	5 times
	 Chief Financial Officer
	  	4 times
	 Executive Vice Presidents
	  	3 times
	 Senior Vice Presidents
	  	2 times
	 Elected Officers
	  	2 times
	 Other Vice Presidents
	  	1 times

 Satisfaction of Requirements 
 Covered employees may satisfy their ownership requirements with common stock in these categories: 
  

	 	•	 	 Shares owned directly. 

  

	 	•	 	 Shares owned by a spouse or a trust. 

  

	 	•	 	 Shares represented by monies invested in 401(k) Company Common Stock Funds or comparable plans. 

 

	 	•	 	 Share equivalents as represented by income deferred to the Company Stock Investment Option of the Deferred Management Incentive Compensation Plan
(DMICP). 

  

	 	•	 	 Unvested Restricted Stock Units and Performance Stock Units (based on the Target Award). 

Key employees will be required to achieve the appropriate ownership level within 5 years and are expected to make continuous progress toward their
target. Appointment to a new level will reset the five year requirement. Unexercised options prior to vesting are not counted toward meeting the guidelines. 
 Holding Period 
 Covered employees must retain net vested Restricted Stock Units and
Performance Stock Units and the net shares resulting from any exercise of stock options if the ownership requirements are not yet satisfied. 

Covered employees are asked to report annually on their progress toward attainment of their share ownership goals.Exhibit 10.5

 Exhibit 10.5 
 Long-Term Incentive Performance Award (Domestic and International) 
  

 
 Lockheed Martin Corporation 
 6801 Rockledge Drive, Bethesda, MD 20817 
 Telephone 301-897-6000 

Award Date: January 28, 2013 
 THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING 
 SECURITIES THAT
HAVE BEEN REGISTERED UNDER THE 
 SECURITIES ACT OF 1933 
 «Name» 
 «Street» 
 «City», «State» «Zip» 
  

			
	Re:	  	Lockheed Martin Corporation 2011 Incentive Performance Award Plan: Long-Term Incentive Performance Award (2013-2015 Performance Period)

 Dear «Call_By_Name»: 
 On behalf of the Management Development and Compensation Committee (the “Committee”) of the Board of Directors of Lockheed Martin Corporation, I am pleased to tell you that you have been granted
a Long-Term Incentive Performance Award under the Corporation’s 2011 Incentive Performance Award Plan (the “Plan”). The purpose of this letter is to serve as the Award Agreement under such Plan and to set forth your Target Award as
well as the terms and conditions to the payment of your Target Award. Additional terms and conditions are set forth in the Plan and in the Prospectus relating to the Plan of which the Plan document and this Award Agreement are a part. The Prospectus
is available at http://www.benefitaccess.com. You should retain the Prospectus and the attached copy of the Plan in your records. 
 Your Award is not effective or enforceable until you properly acknowledge your acceptance of the Award by completing the electronic receipt or returning an executed copy of this Award Agreement to the
Vice President of Total Rewards and Performance Management as instructed below as soon as possible but in no event later than May 31, 2013. If you do not properly acknowledge your acceptance of this Award Agreement on or before
May 31, 2013, this Award will be forfeited. 
 Assuming prompt and proper acknowledgement of your acceptance of this
Award Agreement as described above, this Award will be effective as of the Award Date. Acceptance of this Award Agreement constitutes your consent to any action taken under the Plan consistent with its terms with respect to this Award and your
agreement to be bound by the restrictions contained in Section 18 and Exhibit A (“Post-Employment Conduct Agreement”) and Exhibit B (“Stock Ownership Requirements”), except where prohibited by law. 

The Corporation will comply with all applicable U.S. federal, state, and local income and payroll tax withholding requirements applicable
to the Award. Please see the prospectus for the Plan for a discussion of certain material U.S. federal income and payroll tax consequences of the Award. If you are a taxpayer in a country other than the U.S., you agree to make

 Award Date: January 28, 2013 
  Page
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appropriate arrangements with the Corporation or its subsidiaries for the satisfaction of all income and employment tax withholding requirements, as well as social insurance contributions
applicable to the Award. Please see the tax summary for your country at http://www.benefitaccess.com. If you are a taxpayer in a country other than the U.S., you represent that you will consult with your own tax advisors in connection with
this Award and that you are not relying on the Corporation for any tax advice. 
 Capitalized terms used in this Award Agreement
which have a special meaning either shall be defined in this Award Agreement or if not defined in this Award Agreement shall have the meaning ascribed to the term in the Plan. The term “Target Award” as used in this Award Agreement refers
only to the Target Award awarded to you under this Award Agreement and the term “Award” refers only to the Long Term Incentive Performance Award set forth in this Award Agreement. References to the “Corporation” include Lockheed
Martin Corporation and its Subsidiaries. Appendix A contains an index of all capitalized terms used in this Award Agreement. 
  

	 	Section 1.	Target Award; Performance Period. 

 1.1 Target Award. Your Target Award for the Performance Period under this Award Agreement shall be the U.S. dollar amount identified as your Target Award in your account at
http://www.benefitaccess.com. 
 1.2 Performance Period. The Performance Period under this Award Agreement is a
three-year performance period that runs from January 1, 2013, until December 31, 2015. 
 1.3 Payment of Award.
The amount payable to you under your Award is dependent upon the Corporation’s performance as compared to the metrics described in Section 3 and Section 4 of this Award Agreement and your continued employment with the Corporation in
accordance with Section 5 of this Award Agreement. As a result of these requirements, any payments you receive may be larger or smaller than your Target Award (e.g., the performance factors could result in no payment in respect of your
Award). With respect to US-Based Employees, when an Award becomes vested in accordance with Section 5.2(a), the Award amount will be paid to the Participant in US Dollars. With respect to international employees, when an Award becomes vested in
accordance with Section 5.2(a), the amount payable to the Participant in cash will be the amount of the Participant’s Award converted into local country currency at the conversion rate on the last day of the Performance Period. 

 

	 	Section 2.	Calculation of Award Payments. 

 2.1 End of Performance Period Calculation. Following the end of the Performance Period and prior to any payments being made, 
 (a) The Committee will calculate the Total Stockholder Return Performance Factor based on the Corporation’s performance during the Performance Period relative to the performance of other corporations
which compose the “Peer Performance Group” as defined in Section 3.1 below. 
 (b) The Committee will calculate
the ROIC Performance Factor based on the Corporation’s ROIC during the Performance Period as compared to the projected ROIC for the Performance Period as set forth in the January 23, 2013, Committee resolution (“ROIC Target”).

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 (c)
The Committee will calculate the Cash Flow Performance Factor based on the Corporation’s cumulative Cash Flow during the Performance Period as compared to the projected cumulative Cash Flow for the Performance Period as set forth in the
January 23, 2013, Committee resolution (“Cash Flow Target”). 
 (d) Your “Potential Award” shall be
calculated by multiplying the weighted average of the Total Stockholder Return Performance Factor, the ROIC Performance Factor, and the Cash Flow Performance Factor by your Target Award. The Total Stockholder Return Performance Factor, the ROIC
Performance Factor, and the Cash Flow Performance Factor shall be weighted as follows in determining the weighted average of the three performance factors: 
  

					
	 Total Stockholder Return Performance Factor
	  	 	50	% 
	 ROIC Performance Factor
	  	 	25	% 
	 Cash Flow Performance Factor
	  	 	25	% 

 You must (except as specified in Section 5) remain employed by the Corporation through December 31, 2015, to
receive your Potential Award. 
  

	 	Section 3.	Total Stockholder Return Performance Factor. 

 3.1. Peer Performance Group. The Total Stockholder Return Performance Factor will be based upon the relative ranking of the Corporation’s Average TSR (as defined in Section 3.2(a)) for
the Performance Period to the Average TSR for such Period for each corporation in the “Peer Performance Group.” The “Peer Performance Group” shall consist of the corporations which compose the Standard and Poor’s 500
Aerospace and Defense Index reported under symbol S5AERO by Bloomberg L.P. The Corporation’s Total Stockholder Return will be based on the performance of the Stock. With respect to the corporations that make up the Standard and Poor’s 500
Aerospace and Defense Index, the Total Stockholder Return of each corporation that is taken into account in computing the Peer Performance Group Total Stockholder Return will be based on the equity security of the relevant corporation that is used
in computing the Standard and Poor’s 500 Aerospace and Defense Index. 
 3.2. Calculation of Total Stockholder Return
Performance Factor. 
 (a) Calculation of Average TSR. During the Performance Period, the Committee shall compute the
Total Stockholder Return (as defined in the Plan and assuming the reinvestment of any cash dividends) for the Corporation and for each other corporation in the Peer Performance Group for thirty-six (36) periods during the Performance Period
where each period begins on January 1, 2013 (based on the closing price for the stock on December 31, 2012) and ends on the last day of each successive calendar month in the Performance Period on which the New York Stock Exchange is open
for trading. Each such Total Stockholder Return shall be computed from data available to the public. At the end of the Performance Period, the thirty-six (36) Total Stockholder Return figures for each corporation for the Performance Period will
be averaged to determine each corporation’s average Total Stockholder Return (“Average TSR”) for the Performance Period. Each corporation’s Average TSR shall be ranked among the Average TSR for each other corporation in the Peer
Performance Group on a percentile basis (using the Excel PERCENTRANK function). 

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 (b)
Percentage Level of Target Award. Your Total Stockholder Return Performance Factor, expressed as a percentage, will be determined under this Section 3.2(b) (and Section 3.2(c) to the extent interpolation is necessary) based on the
Percentile Ranking (as determined under Section 3.2(a)) of the Corporation’s Average TSR for the Performance Period under the following chart: 
  

							
	 Band
	  	Percentile Ranking	 	Total Stockholder
Return Performance
Factor	 
	 One
	  	75th - 100	 	 	200	% 
	 Two
	  	60th	 	 	150	% 
	 Three
	  	50th	 	 	100	% 
	 Four
	  	40th	 	 	50	% 
	 Five
	  	35th	 	 	25	% 
	 Six
	  	Below 35th	 	 	0	% 

 (c) Total Stockholder Return Performance Factor Interpolation. If the Percentile Ranking as
determined under Section 3.2(a) puts the Corporation over the listed Percentile Ranking for the applicable Band (other than Band One) in Section 3.2(b), your Total Stockholder Return Performance Factor under Section 3.2(b) shall be
interpolated on a linear basis.  
  

	 	Section 4.	ROIC Performance Factor and Cash Flow Performance Factor. 

 4.1 ROIC Performance Factor. The ROIC Performance Factor will be determined by comparing the Corporation’s ROIC for the Performance Period to the ROIC Target and then identifying the ROIC
Performance Factor based upon the factor associated with the difference on the following table: 
  

					
	 Change from ROIC Target
	  	ROIC Performance
Factor	 
	 Target +3 160 basis points
	  	 	200	% 
	 Target + 120 basis points
	  	 	175	% 
	 Target + 80 basis points
	  	 	150	% 
	 Target + 40 basis points
	  	 	125	% 
	 Target
	  	 	100	% 
	 Target – 10 basis points
	  	 	75	% 
	 Target – 20 basis points
	  	 	50	% 
	 Target – 30 basis points
	  	 	25	% 
	 Target – 3 40 or more basis points
	  	 	0	% 

 (a) ROIC Definition. For purposes of this Award Agreement, “ROIC” means return on
invested capital for the Performance Period calculated as (A) average annual (i) net income (excluding any charge or addition to net income resulting solely from adjustment of deferred tax assets and liabilities for the effect of enactment
of corporate tax reform and related legislation that adjusts United States federal corporate income tax rates) plus (ii) interest expense times one minus the highest marginal federal corporate tax rate over the three year Performance Period
(“Return”), divided by (B) the average of the four 

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year-end investment balances (beginning with December 31, 2012, year-end balance) consisting of (i) debt (including current maturities of long-term debt) plus
(ii) stockholders’ equity plus the postretirement plans amounts determined at year-end as included in the Corporation’s Statement of Stockholders’ Equity. 
 (b) ROIC Determination. Each component of ROIC and the calculation of any postretirement plans amounts recorded in the Corporation’s Statement of Stockholders’ Equity shall be determined
by the Committee in accordance with generally accepted accounting principles in the United States and be based upon the comparable numbers reported on the Corporation’s audited consolidated financial statements or, if audited financial
statements are not available for the date or period on which ROIC is being determined, the Committee shall make its determination in a manner consistent with the historical practices used by the Corporation in determining the components of ROIC and
postretirement plans amounts recorded in the Corporation’s Statement of Stockholders’ Equity for purposes of reporting those items on its audited financial statements, as modified by this paragraph. Notwithstanding the foregoing, ROIC will
be adjusted to exclude the impact of any change in accounting standards or adoption of any new accounting standards that is required under generally accepted accounting principles in the United States and that is reported in the Corporation’s
filings with the Securities and Exchange Commission as having a material effect on the Corporation’s consolidated financial statements. ROIC, as included in the 2013 Long Range Plan, and the change in ROIC for purposes of the ROIC Performance
Factor will be determined in accordance with this Section 4.1(b). 
 4.2 Cash Flow Performance Factor. The Cash Flow
Performance Factor will be determined by comparing the Corporation’s cumulative Cash Flow during the Performance Period to the Cash Flow Target, and then identifying the Cash Flow Performance Factor based upon the factor associated with the
change from the Cash Flow Target on the following table: 
  

					
	 Change From Cash Flow Target
	  	Cash Flow Performance
Factor	 
	 Target + 3$2.0B or more
	  	 	200	% 
	 Target + $1.5B
	  	 	175	% 
	 Target + $1.0B
	  	 	150	% 
	 Target + $0.5B
	  	 	125	% 
	 Target
	  	 	100	% 
	 Target – $0.2B
	  	 	75	% 
	 Target – $0.5B
	  	 	50	% 
	 Target – $0.7B
	  	 	20	% 
	 Target – 3 $1.0B
	  	 	0	% 

 (a) Cash Flow Definition. For purposes of this Award Agreement, Cash Flow means net cash flow from
operations but not taking into account: (i) the aggregate difference between the amount forecasted in the Corporation’s 2013 Long Range Plan to be contributed by the Corporation to the Corporation’s defined benefit pension plans
during the Performance Period and the actual amounts contributed by the Corporation during the Performance Period; or (ii) any tax payments or tax benefits during the Performance Period associated with the divestiture of business units, other
than tax payments or tax benefits that were included in the Corporation’s 2013 Long Range Plan. 

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 (b)
Cash Flow Determination. Cash Flow shall be determined by the Committee based upon the comparable numbers reported on the Corporation’s audited consolidated financial statements or, if audited financial statements are not available for
the period for which Cash Flow is being determined, the Committee shall determine Cash Flow in a manner consistent with the historical practices used by the Corporation in determining net cash provided by operating activities as reported in its
audited consolidated statement of cash flows, in either case as modified by this paragraph. 
 4.3 Interpolation of ROIC and
Cash Flow Metrics. If the change in ROIC or Cash Flow falls between two numbers listed in the applicable table in Section 4.1 or 4.2, the appropriate factor will be interpolated on a linear basis. Notwithstanding the foregoing, the ROIC
Performance Factor will always be zero if the ROIC for the Performance Period is less than the ROIC Target by 40 basis points or more and the Cash Flow Performance Factor will always be zero if the aggregate Cash Flow for the Performance Period is
less than the Cash Flow Target by $1.0 billion or more. 
  

	 	Section 5.	Payment of Award. 

5.1. Employment Requirement. 
 (a) General Rule. In order to be eligible to receive payment of your Award as determined under Section 2.1(d), you must accept this Award Agreement and remain employed by the Corporation
through the last day of the Performance Period. Except as provided below or where prohibited by law, if your employment as an Employee terminates during the Performance Period, you shall forfeit your right to receive all or any part of your Award.
If you are on Corporation-approved leave of absence at any point during the Performance Period, for purposes of this Award Agreement, you will be considered to still be in the employ of the Corporation, unless otherwise provided in an agreement
between you and the Corporation. 
 (b) Exceptions. Notwithstanding Section 5.1(a), if the Committee determines:

 (1) that your employment as an Employee terminated as a result of your death, Divestiture, or Total Disability or your
Retirement (each as defined in Section 5.1(c)) or 
 (2) that the Corporation terminated your employment involuntarily, as a
result of a layoff, including through a voluntary layoff program that constitutes a window program under Section 409A of the Code, 
 you shall vest in a fraction of your Award. The numerator of such fraction shall equal the number of days in the Performance Period before your employment as an Employee terminated, and the denominator
shall equal the total number of days in the Performance Period. The Committee shall have complete and absolute discretion to make the determinations called for under this Section 5.1(b), and all such determinations shall be binding on you and
on any person who claims all or any part of your Award on your behalf as well as on the Corporation. If you terminate employment during the Performance Period but are eligible to receive a portion of your Potential Award as a result of an exception
under this Section 5.1(b), payment of such portion of your Potential Award shall be in full satisfaction of all rights you have under this Award Agreement. 

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 (c)
Special Definitions. For purposes of this Award Agreement: 
 (1) Your employment as an Employee shall be treated as
terminating because of a “Total Disability” on the date you commence receiving a benefit under the Corporation’s long-term disability plan in which you participate, or if you are not enrolled in the Corporation’s long-term
disability plan, the date on which long-term disability benefits would commence under the plan under which you would have been covered, had you enrolled, using the standards set forth in that plan; 

(2) Your employment as an Employee shall be treated as terminating as a result of Divestiture if the Corporation divests all or
substantially all of a business operation of the Corporation and such divestiture results in the termination of your employment with the Corporation and a transfer of such employment to the other party in the Divestiture. A “Divestiture”
shall mean a transaction which results in the transfer of control of the business operation to any person, corporation, association, partnership, joint venture, limited liability company or other business entity of which less than 50% of the voting
stock or other equity interests are owned or controlled by the Corporation; and 
 (3) Your employment as an Employee shall be
treated as terminating because of “Retirement” if your employment terminates after (i) you reach age 65, or (ii) you reach age 55 and have (at the time of your termination) completed at least ten years of service with the
Corporation. 
 5.2. Payment Rules. 
 (a) General Rule: Vesting; Method of Payment; Timing of Payment. 
 (1)
Immediate Portion. If you are eligible to receive all, or a portion of, your Potential Award under Section 5.1, up to $10,000,000 dollars of your Potential Award shall be fully vested on the date on which the Committee certifies in
writing (for purposes of Section 162(m) of the Code) that your Target Award has become a Potential Award for the Performance Period. This portion of your award shall be known as the “Immediate Portion” of your Potential Award. The
Immediate Portion of your Potential Award shall be (i) paid to you in cash as soon as administratively practicable, but no later than ninety (90) days after the certification date described above, but no later than March 15 following
such certification date, or (ii) deferred in accordance with Section 5.2(c). Subject to your deferral election under Section 5.2(c), in the event of your death, the Immediate Portion of your Potential Award will be made to your estate
if you do not have a properly completed beneficiary designation form on file with the Vice President of Total Rewards and Performance Management. 

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 (2)
Deferred Portion. If your Potential Award exceeds $10,000,000 dollars, the amount in excess of $10,000,000 dollars shall be automatically deferred through December 31, 2016. This portion of your award shall be known as the “Deferred
Portion” of your Potential Award. Except as provided in Section 5.2(b)(2), you shall forfeit your right to the payment of the Deferred Portion of your Potential Award if you do not remain employed by the Corporation through
December 31, 2016. The Committee shall establish a bookkeeping account (a “Phantom Stock Account”) on your behalf under this Section 5.2(a)(2) and shall credit such account as described in Section 5.2(a)(3) below. Unless you
forfeit your right to the Deferred Portion of your Potential Award, you shall receive payment of the value of your Phantom Stock Account in cash as determined as of December 31, 2016, no later than March 15, 2017 (subject to section
5.2(c)). The amount payable under from your Phantom Stock Account shall be determined by multiplying the number of units representing shares of phantom stock credited to your account under Section 5.2(a)(3) by the closing price for a share of
the Corporation’s common stock as reported on the New York Stock Exchange for December 31, 2016, or, if it is not a trading day, on the last trading day before December 31, 2016. 

(3) Phantom Stock Account. Your Phantom Stock Account shall be credited with a number of units equal to the number of whole shares
(and any fractional share) of the Corporation’s common stock which could have been purchased by the Deferred Portion of your Potential Award based on the closing price for a share of the Corporation’s common stock as reported on the New
York Stock Exchange for the last trading day of the Performance Period, subject to the Committee’s certification in writing (for purposes of Section 162(m) of the Code) that your Target Award has become a Potential Award for the
Performance Period. Thereafter, the Committee shall make such credits or debits to the units previously credited to such account as the Committee deems appropriate in light of any transaction described in Section 7(a) of the Plan (such as a
stock split or stock dividend) or any cash dividends paid on the Corporation’s common stock, which dividends shall increase the number of units credited to such account as if such dividends had been reinvested in the Corporation’s common
stock at the closing price of a share of the Corporation’s common stock as reported on The New York Stock Exchange for the last trading day of the quarter in which such dividend is declared by the Board of Directors. Units credited to your
Phantom Stock Account are bookkeeping entries only and do not entitle you to any shares of the Corporation’s common stock or to any voting or other rights associated with shares of such stock. 

(4) Transactions involving the Deferred Portion of your Potential Award and your Phantom Stock Account under this Award Agreement are
subject to the securities laws and CPS 722. Among other things, CPS 722 prohibits employees of the Corporation from engaging in transactions that violate securities laws or involve hedging or pledging stock. Insiders are subject to additional
restrictions. The Corporation recommends that Insiders consult with the Senior Vice President, General Counsel and Corporate Secretary or her staff before entering into any transactions involving the Deferred Portion of your Potential Award or your
Phantom Stock Account. 

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 (b)
Special Rules for Certain Terminated Employees. 
 (1) Termination During Performance Period. If you terminate
employment during the Performance Period but are eligible to receive a portion of your Potential Award as a result of an exception under Section 5.1(b), payment of such portion of your Potential Award shall be in full satisfaction of all rights
you have under this Award Agreement; in such circumstances, you will not be eligible for a payment of the Deferred Portion under Section 5.2(a)(2), and no other amounts will be payable to you or on your behalf. The portion of your Potential
Award payable to you following a termination of employment during the Performance Period under circumstances described in Section 5.1(b) shall be paid to you or, in the event of your death, to your designated beneficiary for the Award, in cash
within ninety (90) days after the Committee certifies in writing (for purposes of Section 162(m) of the Code) that your Target Award has become a Potential Award for the Performance Period, but no later than March 15, 2015 (subject to
section 5.2(c)). In the event of your death and you do not have a properly completed beneficiary designation form on file with the Vice President of Total Rewards and Performance Management’s office, your payment will be made to your estate.

 (2) Termination After December 31, 2015 and Before December 31, 2016. Notwithstanding Section 5.2(a)(2),
if your employment terminates after the close of the Performance Period but prior to December 31, 2016, and the Committee determines that your employment terminated under circumstances described in Sections 5.1(b)(1) or (2), then the Deferred
Portion of your Potential Award described in Section 5.2(a)(2) shall be paid to you or, in the event of your death, to your designated beneficiary, in cash within ninety (90) days following your termination of employment, but no later than
March 15 of the year following your termination of employment (subject to Section 5.2(c)). In the event Code section 409A(a)(2)(B)(i) applies because you are a specified employee receiving a distribution on account of a termination of
employment, payment of the Deferred Amount must be delayed for six months from such date. You will be notified if you are a specified employee under Code section 409A. The amount payable in cash under this Section 5.2(b)(2) shall be determined
by multiplying the number of units representing shares of phantom stock credited to your account under Section 5.2(a)(3) on the date your termination becomes effective by the closing price for a share of the Corporation’s common stock as
reported on the New York Stock Exchange for the date on which your termination becomes effective, or if it is not a trading day, on the last trading day before that date. In the event of your death and you do not have a properly completed
beneficiary designation form on file with the Vice President of Total Rewards and Performance Management, your payment will be made to your estate. 
 (c) Deferral. You will be given an opportunity to elect to defer any amounts payable under Section 5.2 of this Award Agreement. Such election shall be irrevocable, shall be made in accordance
with the terms of the Lockheed Martin Corporation Deferred Management Incentive Compensation Plan (“DMICP”) and the requirements of Code section 409A, and shall be subject to such additional terms and conditions as are set by the
Committee. A deferral election form and the terms and conditions for any deferral will be furnished to you in due course. The beneficiary designation for the DMICP 

 Award Date: January 28, 2013 
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(rather than the beneficiary designation for this Long Term Incentive Performance Award) shall govern any amounts deferred under the terms of the DMICP. This Section 5.2(c) shall not apply
if you are a taxpayer in a country other than the United States. 
 5.3. Cutback. Any payment called for under
Section 5.2 will be reduced to the extent that such payment together with payments attributable to any other Cash-Based Awards that are granted during 2013 as Performance Based Awards exceeds $10,000,000. Amounts in excess of any Plan limits
shall be forfeited. 
 5.4. Means of Satisfying Code Section 409A. If any payment that would otherwise be made under
this Award Agreement is required to be delayed by reason of Section 13, such payment shall be made at the earliest date permitted by Code section 409A. The amount of any delayed payment shall be the amount that would have been paid prior to the
delay adjusted to include interest from the original payment date to the actual payment date, at a rate equivalent to the six month London Interbank Offered Rate (LIBOR) as published in the Money Rates section of the Wall Street Journal, plus 25
basis points. The increase over LIBOR may be adjusted to reflect the six month unsecured borrowing rate of the Corporation. 
  

	 	Section 6.	No Assignment – General Creditor Status. 

 You shall have no right to assign any interest you might have in all or any part of the Target Award or Potential Award which has been granted to you under this Award Agreement and any attempt to do so
shall be null and void and shall have no force or effect whatsoever. Furthermore, all payments called for under this Award Agreement shall be made in cash from the Corporation’s general assets, and your right to payment from the
Corporation’s general assets shall be the same as the right of a general and unsecured creditor of the Corporation. 
  

	 	Section 7.	Plan. 

 This Award
Agreement shall be subject to all of the terms and conditions set forth in the Plan. 
  

	 	Section 8.	Change in Control. 

8.1. Vesting of Award Upon Change in Control. In the event of a consummation of a Change in Control during the Performance Period
or prior to the payment of the Deferred Portion of your Award, your Target Award (or the Deferred Portion of your Award, as applicable) will become vested (i) on the effective date of the Change in Control if the LTIP Award is not assumed or
continued, or equivalent cash incentives are not substituted for your LTIP Award by the Corporation or its successor, or (ii) if the LTIP is assumed, continued or substituted, upon your involuntary termination other than for Cause (not
including death or disability) or your voluntary termination with Good Reason, in either case, within the 24-month period following the consummation of the Change in Control. The cash payment in which you have become vested shall be delivered to you
within fourteen (14) days of the date on which you become vested. 

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 8.2
Special Definitions.  
 (a) Cause shall mean any of the following: 

(1) Conviction for an act of fraud, embezzlement, theft or other act constituting a felony (other than traffic-related offenses or as a
result of vicarious liability); 
 (2) Willful misconduct that is materially injurious to the Corporation’s financial
position, operating results or reputation; provided, however that no act or failure to act shall be considered “willful” unless done, or omitted to be done, by you (a) in bad faith; (b) for the purpose of receiving an actual
improper personal benefit in the form of money, property or services; or (c) in circumstances where you had reasonable cause to believe that the act, failure to act, or omission was unlawful. 

(b) Good Reason shall mean, without your express written consent, the occurrence of any one or more of the following: 

(1) A material and substantial reduction in the nature or status or your authority or responsibilities; 

(2) A material reduction in your annualized rate of base salary; 
 (3) A material reduction in the aggregate value of your level of participation in any short or long term incentive cash compensation plan, employee benefit or retirement plan or compensation practices,
arrangements, or policies; 
 (4) A material reduction in the aggregate level of participation in equity-based incentive
compensation plans; or 
 (5) Your principal place of employment is relocated to a location that is greater than fifty
(50) miles from your principal place of employment on the date the Change in Control is consummated. 
 Your continued
employment following an event that would constitute a basis for voluntary termination with Good Reason shall not constitute you consent to, or waiver of rights with respect to any circumstances constituting Good Reason; provided however, that the
occurrence of an event described in (i) through (v) shall constitute the basis for voluntary termination for Good Reason only if you provide notice of your intent to terminate employment within ninety (90) days of the occurrence of
such event. 
 8.3. Special Rule. Notwithstanding Section 8.1 or 8.2, if a payment in accordance with those
provisions would result in a nonexempt short-swing transaction under Section 16(b) of the Securities Exchange Act of 1934, then the date of distribution to you shall be delayed until the earliest date upon which the distribution either would
not result in a nonexempt short-swing transaction or would otherwise not result in liability under Section 16(b) of the Securities Exchange Act of 1934. 
  

	 	Section 9.	Amendment and Termination. 

 As provided in Section 9 of the Plan, the Board of Directors may at any time amend, suspend or discontinue the Plan and the Committee may at any time amend this Award Agreement. Notwithstanding the
foregoing, no such action by the Board of Directors or the 

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Committee shall amend Sections 1, 2, 3, 4, or 5 in a manner adverse to you or reduce the amount payable hereunder in a material manner without your written consent. For this purpose, a change in
the amount payable hereunder that occurs solely by reason of a change in the date or form of payment shall in no case be treated as a reduction prohibited by this Section 9. Thus, for example, if an amount payable by reason of Section 8 is
delayed by an amendment to this Award Agreement or other action undertaken to comply with Section 409A of the Code and the amount payable is reduced solely by reason of a corresponding delay in the date of valuation of a share of Stock, such a
change shall not be treated as a reduction prohibited by this Section 9. This Section 9 shall be construed and applied so as to permit the Committee to amend this Award Agreement at any time in any manner reasonably necessary or
appropriate in order to comply with the requirements of Section 16 of the Exchange Act and of Section 409A of the Code, including amendments regarding the timing and form of payments hereunder. 

 

	 	Section 10.	Data Privacy Consent For Employees Located Outside Of The United States. 

You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as
described in this Award Agreement by and among the Corporation for the exclusive purpose of implementing, administering and managing your participation in the Plan. 
 You understand that the Corporation holds certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or
other identification number, salary, nationality, job title, any shares or directorships held in the Corporation, details of all awards or any other entitlement to shares awarded, canceled, exercised, vested, unvested or outstanding in your favor,
for the purpose of implementing, administering and managing the Plan (“Data”). You understand that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these
recipients may be located in your country or elsewhere, and that the recipient’s country may have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any
potential recipients of the Data by contacting your local human resources representative. You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing,
administering and managing your participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Corporation may elect to administer the settlement of any award. You
understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing
of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative. You understand, however, that refusing or withdrawing your
consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative. 

 

	 	Section 11.	No Assurance of Employment; No Right to an Award; Value of Award. 

 Nothing contained in the Plan or in this Award Agreement shall confer upon you any right to continue in the employ or other service of the Corporation or constitute any contract (of employment or
otherwise) or limit in any way the right of the Corporation to change your compensation or other benefits or to terminate your employment with or without cause. You acknowledge and agree as follows: 

(a) the Plan is discretionary in nature and that the Committee may amend, suspend, or terminate it at any time; 

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 (b)
the grant of the Award is voluntary and occasional and does not create any contractual or other right to receive future grants of any Awards, or benefits in lieu of any Award even if Awards have been granted repeatedly in the past; 

(c) all determinations with respect to such future Awards, if any, including but not limited to the times when Awards shall be granted or
when Award shall vest, will be at the sole discretion of the Committee; 
 (d) your participation in the Plan is voluntary;

 (e) the value of the Award is an extraordinary item of compensation, which is outside the scope of your employment contract
(if any), except as may otherwise be explicitly provided in your employment contract; 
 (f) the Award is not part of normal or
expected compensation or salary for any purpose, including, but not limited to, calculating termination, severance, resignation, redundancy, end of service, or similar payments, or bonuses, long-service awards, pension or retirement benefits;

 (g) the Award shall expire upon termination of your employment for any reason except as may otherwise be explicitly provided
in the Plan and this Award Agreement; 
 (h) the future value of the Award is unknown and cannot be predicted with certainty; and

 (i) no claim or entitlement to compensation or damages arises from the termination of the Award or diminution in value of the
Award and you irrevocably release the Corporation and your employer from any such claim that may arise. 
  

	 	Section 12.	Conflict. 

 In the
event of a conflict between this Award Agreement and the Plan, the Plan document shall control. 
  

	 	Section 13.	Compliance with Section 409A of the Code. 

 Notwithstanding any other provision of this Award Agreement to the contrary, to the extent that this Award Agreement constitutes a nonqualified deferred compensation plan to which Section 409A of the
Code applies, payments under this Award Agreement shall be made at a time and in a manner that satisfies the requirements of Section 409A of the Code and guidance of general applicability issued thereunder, including the provisions of
Section 409A(a)(2)(B)(i) of the Code to the extent distributions to any specified employee are required to be delayed six months, and all terms shall be interpreted in accordance with Section 409A of the Code. If any payment that would
otherwise be made under this Award Agreement is required to be delayed by reason of this Section 13, such payment shall be made at the earliest 

 Award Date: January 28, 2013 
  Page
 14
 
  
 
date permitted by Section 409A of the Code. If a payment under this Award constitutes nonqualified deferred compensation under Section 409A of the Code, no payment due upon termination
of employment shall be made unless the termination of employment is a “separation from service” as defined in Section 409A of the Code and accompanying regulations. 

 

	 	Section 14.	Post-Employment Covenants & Stock Ownership Requirements. 

 Except where prohibited by law, by accepting this Award Agreement through the procedure described above, you agree to the terms of the Post-Employment Covenants contained in Exhibit A to this Award
Agreement and you acknowledge receipt of the Stock Ownership Requirements (“Ownership Requirements”) attached as Exhibit B to this Award Agreement and agree to comply with such Ownership Requirements. If you are not a Vice President (or
above) on January 30, 2013, but you are promoted to Vice President (or above) prior to January 30, 2016, the Ownership Requirements shall become applicable to you on the date of your promotion to Vice President (or above). 

 

	 	Section 15.	English Language. 

You have received the terms and conditions of this Award Agreement and any other related communications, and you consent to having
received these documents in English. If you have received this Award Agreement or any other documents related to the Plan translated into a language other than English, and if the translated version is different from the English version, the English
version will control. 
  

	 	Section 16.	Currency Exchange Risk. 

 If your functional currency is not the U.S. dollar, you agree and acknowledge that you will bear any and all risk associated with the exchange or fluctuation of currency associated with the Award (the
“Currency Exchange Risk”). You waive and release the Corporation and its subsidiaries from any potential claims arising out of the Currency Exchange Risk. 
  

	 	Section 17.	Exchange Control Requirements. 

 You agree and acknowledge that you will comply with any and all exchange control requirements applicable to the Award and any resulting funds including, without limitation, reporting or repatriation
requirements. 
  

	 	Section 18.	Electronic Delivery; Execution. 

 By executing this Award Agreement, you consent to receive copies of the Prospectus applicable to this Award from this internet site (http://www.benefitaccess.com) as well as to electronic delivery of the
Corporation’s annual report on Form 10-K, annual proxy and quarterly reports on Form 10-Q. This consent can only be withdrawn by written notice to the Vice President of Total Rewards and Performance Management at the address noted above. The
Company may, in its sole discretion, decide to deliver any documents related to the Award under the Plan or future Awards that may be awarded under the Plan by electronic means or request your consent to participate in the Plan by electronic means.
You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through any on-line or electronic system established and maintained by the Corporation or another third party designated by the Corporation.

 Award Date: January 28, 2013 
  Page
 15
 
  
 No
Award is enforceable until you properly acknowledge your acceptance by completing the electronic receipt or returning an executed copy of this Award Agreement to the Vice President of Total Rewards and Performance Management as soon as possible but
in no event later than May 31, 2013. Acceptance of this Award Agreement must be made only by you personally or by a person acting pursuant to a power of attorney in the event of your inability to acknowledge your acceptance due to your
disability or deployment in the Armed Forces (and not by your estate, your spouse or any other person) and constitutes your consent to any action taken under the Plan consistent with its terms with respect to this Award. The Committee has authorized
electronic means for the delivery and acceptance of this Award Agreement. If you desire to accept this Award, you must acknowledge your acceptance and receipt of this Award Agreement, either electronically or by signing and returning a copy of this
letter on or before May 31, 2013, as follows: 
 (a) Electronic Acceptance: Go to http://www.benefitaccess.com

 (b) By Mail: Mr. David Filomeo, Vice President of Total Rewards and Performance Management, Lockheed Martin Corporation,
Mail Point 123, 6801 Rockledge Drive, Bethesda MD 20817 
 Assuming prompt and proper acknowledgment of this Award Agreement as
described, this Award will be effective as of the Award Date. 
  

	
	Sincerely,
	
	David A. Filomeo
	Vice President
	Total Rewards and Performance Management

  

					
	Enclosures	 		 	
			
	ACKNOWLEDGEMENT:	 		 	
			
	  
	 		 	  

	Signature	 		 	Date
			
	  
	 		 	
	Print or type name	 		 	

 Award Date: January 28, 2013 
  Page
 16
 
  

Appendix A 

Capitalized Terms 
  

			
	Average TSR	  	§ 3.2(a)
	Award	  	5th ¶
	 Award Date
 Cash
Flow
	  	 Header
 §
4.2(a)

	Cash Flow Performance Factor	  	§ 4.2
	 Cash Flow Target

Cause
 Change of Control
	  	 § 2.1(c)
 §
8.2(a)
 Plan

	 Code
 Committee
	  	 Plan
 1st
¶

	Corporation	  	5th ¶
	Deferred Portion	  	§ 5.2(a)(2)
	 Divestiture

Employee
 Exchange Act

Good Reason
 Immediate Portion

Insider
	  	 § 5.1(c)
 Plan

Plan
 § 8.2(b)

§ 5.2(a)(1)
 Plan

	Peer Performance Group	  	§ 3.1
	 Performance-Based Award

Performance Period
	  	 Plan
 §
1.2

	Phantom Stock Account	  	§ 5.2(a)(3)
	Plan	  	1st ¶
	Potential Award	  	§ 2.1(d)
	 Retirement
 Return

ROIC
	  	 § 5.1(c)
 §
4.1(a)
 § 4.1(a)

	 ROIC Performance Factor
 ROIC
Target
	  	 § 4.1
 §
2.1(b)

	Subsidiary	  	Plan
	Target Award	  	5th ¶, § 1.1
	 Total Disability
 Total
Stockholder Return
	  	 § 5.1(c)
 Plan; §
3.2(a)

	Total Stockholder Return Performance Factor	  	§ 3.1; § 3.2

 Award Date: January 28, 2013 
  Page
 17
 
  

Exhibit A 
 Post
Employment Conduct Agreement 
 (LTIP Grant) 
 This Post Employment Conduct Agreement (this “PECA”) attached as Exhibit A to the Award Agreement with an Award Date of January 28, 2013 (the “Award Agreement”) is entered into in
consideration of, among other things, the grant of a Long Term Incentive Performance Award to me under the Award Agreement (the “LTIP”) pursuant to the Lockheed Martin Corporation 2011 Incentive Performance Award Plan (the
“Plan”). References to the “Corporation” shall include Lockheed Martin Corporation and its Subsidiaries. By accepting the LTIP, I agree as follows: 
 1. Protective Covenants. 
 (a) Covenant Not To Compete – Without
the express written consent of the “Required Approver,” during the one-year (or two-year for Elected Officers) period following the date of my termination of employment (the “Termination Date”) with the Corporation, I will not,
directly or indirectly, be employed by, provide services to, or advise a “Restricted Company” (as defined in Section 6), whether as an employee, advisor, director, officer, partner or consultant, or in any other position, function or
role that, in any such case, 
  

	 	(i)	oversees, controls or affects the design, operation, research, manufacture, marketing, sale or distribution of “Competitive Products or Services” (as defined
in Section 6) of or by the Restricted Company, or 

  

	 	(ii)	would involve a substantial risk that the “Confidential or Proprietary Information” (as defined in Section 1(c)) of the Corporation (including but not
limited to technical information or intellectual property, strategic plans, information relating to pricing offered to the Corporation by vendors or suppliers or to prices charged or pricing contemplated to be charged by the Corporation,
information relating to employee performance, promotions or identification for promotion, or information relating to the Corporation’s cost base) could be used to the disadvantage of the Corporation. 

Section 1(a)(i) and (ii) shall not apply to residents of California and individuals who are employed by the Corporation in an
attorney position, as determined in the discretion of the Corporation’s Senior Vice President, General Counsel, and Corporate Secretary or the General Tax Counsel, as applicable. In lieu of Section 1(a)(i) and (ii) and
Section 1(b), the following provisions shall apply to individuals who are employed by the Corporation in an attorney position, as determined in the discretion of the Corporation’s Senior Vice President, General Counsel, and Corporate
Secretary or the General Tax Counsel, as applicable: 
  

	 	(i)	 Post-employment Activity As a Lawyer – I acknowledge that as counsel to Lockheed Martin Corporation (the “Corporation”), I owe
ethical and fiduciary obligations to the Corporation and that at least some of these obligations will continue even after the date of my termination of employment (“Termination Date”) with the Corporation. I agree that after my Termination
Date I will comply fully with all applicable ethical and fiduciary obligations that I owe to 

 Award Date: January 28, 2013 
  Page
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the Corporation. To the extent permitted by applicable law, including but not limited to any applicable rules governing attorney conduct, I agree that I will not: 

 

	 	(a)	Represent any client adversely to the Corporation; 

  

	 	(b)	Reveal to any third party any Confidential or Proprietary information learned by me during the course of my employment with the Corporation except for information that
is or becomes generally known; 

  

	 	(c)	Encourage or solicit any present or future agents or employees of the Corporation to terminate their employment for the purpose of competing with the Corporation; or

  

	 	(d)	Whether as a lawyer or non-lawyer, accept a position (whether as agent, employer, part or sole owner or in any other capacity) with any person or entity whose interests
are adverse to the Corporation’s interests if that adverse position is related in any way to my present or past work with the Corporation. 

 (b) Non-Solicit – Without the express written consent of the Required Approver, during the one-year period (two-year period for Elected Officers) following the Termination Date, I will not
(i) interfere with any contractual relationship between the Corporation and any customer, supplier, distributor or manufacturer of or to the Corporation to the detriment of the Corporation or (ii) induce or attempt to induce any person who
is an employee of the Corporation to perform work or services for any entity other than the Corporation. This Section 1(b) shall not apply to an individual who is employed by the Corporation as an attorney. 

(c) Protection of Proprietary Information – Except to the extent required by law, following my Termination Date, I will have a
continuing obligation to comply with the terms of any non-disclosure or similar agreements that I signed while employed by the Corporation committing to hold confidential the “Confidential or Proprietary Information” (as defined below) of
the Corporation or any of its affiliates, subsidiaries, related companies, joint ventures, partnerships, customers, suppliers, partners, contractors or agents, in each case in accordance with the terms of such agreements. I will not use or disclose
or allow the use or disclosure by others to any person or entity of Confidential or Proprietary Information of the Corporation or others to which I had access or that I was responsible for creating or overseeing during my employment with the
Corporation. In the event I become legally compelled (by deposition, interrogatory, request for documents, subpoena, civil investigative demand or otherwise) to disclose any proprietary or confidential information, I will immediately notify the
Corporation’s Senior Vice President, General Counsel, and Corporate Secretary as to the existence of the obligation and will cooperate with any reasonable request by the Corporation for assistance in seeking to protect the information. All
materials to which I have had access, or which were furnished or otherwise made available to me in connection with my employment with the Corporation shall be and remain the property of the Corporation. For purposes of this PECA, “Confidential
or Proprietary Information” means Proprietary Information within the meaning of CPS 710 (a copy of which has been made available to me), including but not limited to information that a person or entity desires to protect from unauthorized
disclosure to third parties that can provide the person or entity with a business, technological, or economic advantage over its 

 Award Date: January 28, 2013 
  Page
 19
 
  
 
competitors, or which, if known or used by third parties or if used by the person’s or entity’s employees or agents in an unauthorized manner, might be detrimental to the person’s
or entity’s interests. Confidential or Proprietary Information may include, but is not limited to: 
  

	 	(i)	existing and contemplated business, marketing and financial business information such as business plans and methods, marketing information, cost estimates, forecasts,
financial data, cost or pricing data, bid and proposal information, customer identification, sources of supply, contemplated product lines, proposed business alliances, and information about customers or competitors, or 

 

	 	(ii)	existing or contemplated technical information and documentation pertaining to technology, know how, equipment, machines, devices and systems, computer hardware and
software, compositions, formulas, products, processes, methods, designs, specifications, mask works, testing or evaluation procedures, manufacturing processes, or production processes. 

(d) No disparagement – Following the Termination Date, I will not make any statements, whether verbal or written, that
disparage or reasonably may be interpreted to disparage the Corporation or its stockholders, directors, officers, employees, agents, attorneys, representatives, technology, products or services with respect to any matter whatsoever. 

(e) Cooperation in Litigation and Investigations – Following the Termination Date, I will, to the extent reasonably requested,
cooperate with the Corporation in any pending or future litigation (including alternative dispute resolution proceedings) or investigations in which the Corporation or any of its subsidiaries or affiliates is a party or is required or requested to
provide testimony and regarding which, as a result of my employment with the Corporation, I reasonably could be expected to have knowledge or information relevant to the litigation or investigation. Notwithstanding any other provision of this PECA,
nothing in this PECA shall affect my obligation to cooperate with any governmental inquiry or investigation or to give truthful testimony in court. 
 2. Consideration and Acknowledgement. I acknowledge and agree that the benefits and compensation opportunities being made available to me under the Award Agreement are in addition to the benefits
and compensation opportunities that otherwise are or would be available to me in connection with my employment by the Corporation and that the grant of the LTIP is expressly made contingent upon my agreements with the Corporation set forth in this
PECA. I acknowledge that the scope and duration of the restrictions in Section 1 are necessary to be effective and are fair and reasonable in light of the value of the benefits and compensation opportunities being made available to me under the
Award Agreement. I further acknowledge and agree that as a result of the high level executive and management positions I hold with the Corporation and the access to and extensive knowledge of the Corporation’s Confidential or Proprietary
Information, employees, suppliers and customers, these restrictions are reasonably required for the protection of the Corporation’s legitimate business interests. 
 3. Remedies For Breach of Section 1; Additional Remedies of Clawback and Recoupment. 
 (a) If I become (or currently am) an Insider (as defined in the Plan) or receive a Long-Term Incentive Performance Award, I agree, upon demand by the Corporation, to forfeit, return or repay to the
Corporation the “Benefits and Proceeds” (as defined below) in the event any of the following occur: 
  

	 	(i)	I breach any of the covenants or agreements in Section 1; 

 Award Date: January 28, 2013 
  Page
 20
 
  
  

	 	(ii)	The Corporation determines that either (a) my intentional misconduct or gross negligence, or (b) my failure to report another person’s intentional
misconduct or gross negligence of which I had knowledge during the period I was employed by the Corporation, contributed to the Corporation having to restate all or a portion of its financial statements filed for any period with the Securities and
Exchange Commission; 

  

	 	(iii)	The Corporation determines that I engaged in fraud, bribery or any other illegal act or that my intentional misconduct or gross negligence (including the failure to
report the acts of another person of which I had knowledge during the period I was employed by the Corporation) contributed to another person’s fraud, bribery or other illegal act, which in any such case adversely affected the
Corporation’s financial position or reputation; or 

  

	 	(iv)	Under such other circumstances specified by final regulation issued by the Securities and Exchange Commission entitling the Corporation to recapture or clawback
“Benefits and Proceeds” (as defined below). 

 (b) The remedy provided in Section 3(a) shall not be
the exclusive remedy available to the Corporation for any of the conduct described in Section 3(a) and shall not limit the Corporation from seeking damages or injunctive relief. 

(c) For purposes of this Section 3, “Benefits and Proceeds” means (i) to the extent I have earned any of the LTIP, any
cash paid to me, whether paid currently or deferred; and (ii) to the extent I have not earned the LTIP fully, all of my remaining rights, title or interest in the LTIP. 
 4. Injunctive Relief. I acknowledge that the Corporation’s remedies at law may be inadequate to protect the Corporation against any actual or threatened breach of the provisions of
Section 1 or the conduct described in Section 3(a), and, therefore, without prejudice to any other rights and remedies otherwise available to the Corporation at law or in equity (including but not limited to, an action under
Section 3(a), the Corporation shall be entitled to the granting of injunctive relief in its favor and to specific performance without proof of actual damages and without the requirement of the posting of any bond or similar security.

 5. Invalidity; Unenforceability. It is the desire and intent of the parties that the provisions of this PECA shall be enforced to the fullest
extent permissible. Accordingly, if any particular provision of this PECA is adjudicated to be invalid or unenforceable, this PECA shall be deemed amended to delete the portion adjudicated to be invalid or unenforceable, such deletion to apply only
with respect to the operation of this provision in the particular jurisdiction in which such adjudication is made. 

 Award Date: January 28, 2013 
  Page
 21
 
  
 6. Definitions.
Capitalized terms not defined in this PECA have the meaning given to them in the Plan, as applicable. For purposes of this PECA, the following terms have the meanings given below: 

(a) “Restricted Company” means The Boeing Company, General Dynamics Corporation, Northrop Grumman Corporation, the Raytheon
Company, United Technologies Corporation, Honeywell International Inc., BAE Systems Inc., L-3 Communications Corporation, the Harris Corporation, Thales, EADS North America and (i) any entity directly or indirectly controlling, controlled by,
or under common control with any of the foregoing, and (ii) any successor to all or part of the business of any of the foregoing as a result of a merger, reorganization, consolidation, spin-off, split-up, acquisition, divestiture, or similar
transaction. 
 (b) “Competitive Products or Services” means products or services that compete with, or are an
alternative or potential alternative to, products sold or services provided by a subsidiary, business area, division or operating unit or business of the Corporation as of the Termination Date and at any time within the two-year period ending on the
Termination Date; provided, that, (i) if I had direct responsibility for the business of, or function with respect to, a subsidiary, or for a business area, division or operating unit or business of the Corporation at any time within the
two-year period ending on the Termination Date, Competitive Products or Services includes the products so sold or the services so provided during that two-year period by the subsidiary, business area, division or operating unit of the Corporation
for which I had responsibility, and (ii) if I did not have direct responsibility for the business of, or function with respect to, a subsidiary, or for a business area, division or operating unit or business of the Corporation at any time
within the two-year period ending on the Termination Date, Competitive Products or Services includes the products so sold or the services so provided by a subsidiary, business area, division or operating unit of the Corporation for which I had
access (or was required or permitted such access in the performance of my duties or responsibilities with the Corporation) to Confidential or Proprietary Information of the Corporation at any time during the two-year period ending on the Termination
Date. 
  

	 	(c)	“Required Approver” means: 

  

	 	(i)	with respect to the Chief Executive Officer and President, the Management and Development Committee of the Corporation’s Board of Directors; with respect to an
Elected Officer, the Corporation’s Chief Executive Officer and President; or 

  

	 	(ii)	with respect to all other employees, the Senior Vice President, Human Resources of the Corporation. 

 

	 	(d)	“Elected Officer” means an officer of the Corporation who was elected to his or her position by the Corporation’s Board of Directors.

 7. Miscellaneous. 
 (a) The Plan, the Award Agreement (with Exhibit B) and this PECA constitute the entire agreement governing the terms of the award of the LTIP to me. 

(b) This PECA shall be governed by Maryland law, without regard to its provisions governing conflicts of law. Any enforcement of, or
challenge to, this PECA may only be brought in the Circuit Court of Maryland or the United States District Court for the District of Maryland. Both parties consent to the proper jurisdiction and venue of the Circuit Court of Maryland and the United
States District Court for the District of Maryland for the purpose of enforcing or challenging this PECA. 

 Award Date: January 28, 2013 
  Page
 22
 
  
 (c)
This PECA shall inure to the benefit of the Corporation’s successors and assigns and may be assigned by the Corporation without my consent. 
 (d) This PECA provides for certain obligations on my part following the Termination Date and shall not, by implication or otherwise, affect in any way my obligations to the Corporation during the term of
my employment by the Corporation, whether pursuant to written agreements between the Corporation and me, the provisions of applicable Corporate policies that may be adopted from time to time or applicable law or regulation. 

This PECA is effective as of the acceptance by me of the award of an LTIP under the Award Agreement and is not contingent on the
vesting of the LTIP. 

 Award Date: January 28, 2013 
  Page
 23
 
  

Exhibit B 
 Stock
Ownership Requirements 
 Lockheed Martin’s Stock Ownership Requirements for Key Employees apply to all senior level positions of Vice
President and above. This reflects the expectations of our major shareholders that management demonstrate its confidence in Lockheed Martin through a reasonable level of personal share ownership. This practice is consistent with other major U.S.
corporations which link some portion of personal financial interests of key employees with those of shareholders. 
 Stock Ownership
Requirements 
  

			
	 Title
	  	 Annual Base Pay Multiple

	Executive Chairman of the Board of Directors	  	6 times
	Chief Executive Officer & President	  	6 times
	Chief Operating Officer	  	5 times
	Chief Financial Officer	  	4 times
	Executive Vice Presidents	  	3 times
	Senior Vice Presidents	  	2 times
	Other Elected Officers	  	2 times
	Other Vice Presidents	  	1 times

 Satisfaction of Requirements 
 Covered employees may satisfy their ownership requirements with common stock in these categories: 
  

	 	•	 	 Shares owned directly. 

  

	 	•	 	 Shares owned by a spouse or a trust. 

  

	 	•	 	 Shares represented by monies invested in 401(k) Company Common Stock Funds or comparable plans. 

 

	 	•	 	 Share equivalents as represented by income deferred to the Company Stock Investment Option of the Deferred Management Incentive Compensation Plan
(DMICP). 

  

	 	•	 	 Unvested Restricted Stock Units and Performance Stock Units (based on the Target Award). 

Key employees will be required to achieve the appropriate ownership level within 5 years and are expected to make continuous progress toward their
target. Appointment to a new level will reset the five year requirement. Unexercised options prior to vesting are not counted toward meeting the guidelines. 
 Holding Period 
 Covered employees must retain net vested Restricted Stock Units and
Performance Stock Units and the net shares resulting from any exercise of stock options if the ownership requirements are not yet satisfied. 

Covered employees are asked to report annually on their progress toward attainment of their share ownership goals.

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