Document:

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                                                                    Exhibit 10.2

                           LOCKHEED MARTIN CORPORATION

                              DIRECTORS EQUITY PLAN

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                                TABLE OF CONTENTS

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<S>                                                                           <C>
                                    ARTICLE I

                      TITLE, PURPOSE AND AUTHORIZED SHARES

                                   ARTICLE II

                                   DEFINITIONS

                                   ARTICLE III

                                  PARTICIPATION

3.1.  Award.................................................................... 5
3.2.  Election................................................................. 6

                                   ARTICLE IV

                                   STOCK UNITS

4.1.  Stock Unit Account....................................................... 6
4.2.  Dividend Equivalents; Dividend Equivalent Stock Account.................. 6
4.3.  Vesting of Stock Unit Account and Dividend Equivalent Stock Account...... 6
4.4.  Distribution of Benefits................................................. 7
4.5.  Limitations on Rights Associated with Units.............................. 7

                                    ARTICLE V

                                  STOCK OPTIONS

5.1.  Exercise Price........................................................... 7
5.2.  Non-transferability of Options........................................... 7
5.3.  Vesting; Term of Options................................................. 8
5.4.  Payment of Exercise Price................................................ 8
5.5.  Rights as Stockholder.................................................... 8

                                   ARTICLE VI

                                 ADMINISTRATION

6.1.  Administration........................................................... 8
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<TABLE>
<S>                                                                            <C>
6.2.  Decisions Final; Delegation; Reliance; and Limitation on Liability.......  8

                                   ARTICLE VII

                          PLAN CHANGES AND TERMINATION

7.1.  Adjustments upon Changes in Common Stock.................................  9
7.2.  Amendments...............................................................  9
7.3.  Term.....................................................................  9
7.4.  Distribution of Shares...................................................  9

                                  ARTICLE VIII

                                  MISCELLANEOUS

8.1.  Limitation on Directors' Rights..........................................  9
8.2.  Beneficiaries............................................................  9
8.3.  Corporation's Right to Withhold.......................................... 10
8.4.  Benefits Not Assignable; Obligations Binding Upon Successors............. 10
8.5.  Governing Law; Severability.............................................. 10
8.6.  Compliance With Laws..................................................... 10
8.7.  Plan Construction........................................................ 10
8.8.  Headings Not Part of Plan................................................ 10
</TABLE>

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                           LOCKHEED MARTIN CORPORATION

                              DIRECTORS EQUITY PLAN

                                   May 1, 1999
                             As Amended May 1, 2000
                      As Amended Effective January 1, 2002
                      As Amended Effective October 24, 2002

                                    ARTICLE I

                      TITLE, PURPOSE AND AUTHORIZED SHARES

     This Plan shall be known as "Lockheed Martin Corporation Directors Equity
Plan" and shall become effective on May 1, 1999. The purpose of this Plan is to
attract, motivate and retain experienced and knowledgeable directors for the
Corporation and to further align their economic interests with the interests of
stockholders generally. The total number of shares of Common Stock that may be
delivered pursuant to awards under this Plan is 1,000,000, subject to
adjustments contemplated by Section 7.1. Shares of Common Stock subject to an
Option terminating or expiring for any reason prior to its exercise, and Units
and Dividend Equivalents that are forfeited pursuant to the Plan, shall be
available for Awards to be granted during the term of the Plan.

                                   ARTICLE II

                                   DEFINITIONS

The following terms shall have the meaning specified below unless the context
clearly indicates otherwise:

          Accounts means a Director's Stock Unit Account and Dividend Equivalent
          Stock Account.

          Award means an award granted pursuant to Section 3.1.

          Award Date means May 1 of each year, commencing in 1999, 2000 or 2001
          (or if May 1 falls on a weekend or holiday, the next following
          business day) and January 15 of each year, commencing in 2002 and
          years thereafter (or if January 15 falls on a weekend or holiday, the
          next following business day).

          Beneficiary shall have the meaning specified in Section 8.2(b).

          Board of Directors or Board means the Board of Directors of the
          Corporation.

          Change in Control means:

               1)   A tender offer or exchange offer is consummated for the
          ownership of securities of the Corporation representing 25% or more of
          the combined voting power of the Corporation's then outstanding voting
          securities entitled to vote in the election of directors of the
          Corporation.

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               2)   The Corporation is merged, combined, consolidated,
          recapitalized or otherwise reorganized with one or more other entities
          that are not Subsidiaries and, as a result of the merger, combination,
          consolidation, recapitalization or other reorganization, less than 75%
          of the outstanding voting securities of the surviving or resulting
          corporation shall immediately after the event be owned in the
          aggregate by the stockholders of the Corporation (directly or
          indirectly), determined on the basis of record ownership as of the
          date of determination of holders entitled to vote on the action (or in
          the absence of a vote, the day immediately prior to the event).

               3)   Any person (as this term is used in Sections 3(a)(9) and
          13(d)(3) of the Exchange Act, but excluding any person described in
          and satisfying the conditions of Rule 13d-1(b) (1) thereunder),
          becomes the beneficial owner (as defined in Rule 13d-3 under the
          Exchange Act), directly or indirectly, of securities of the
          Corporation representing 25% or more of the combined voting power of
          the Corporation's then outstanding securities entitled to vote in the
          election of directors of the Corporation.

               4)   At any time within any period of two years after a tender
          offer, merger, combination, consolidation, recapitalization, or other
          reorganization or a contested election, or any combination of these
          events, the "Incumbent Directors" shall cease to constitute at least a
          majority of the authorized number of members of the Board. For
          purposes hereof, "Incumbent Directors" shall mean the persons who were
          members of the Board immediately before the first of these events and
          the persons who were elected or nominated as their successors or
          pursuant to increases in the size of the Board by a vote of at least
          three-fourths of the Board members who were then Board members (or
          successors or additional members so elected or nominated).

               5)   The stockholders of the Corporation approve a plan of
          liquidation and dissolution or the sale or transfer of substantially
          all of the Corporation's business and/or assets as an entirety to an
          entity that is not a Subsidiary.

          Code means the Internal Revenue Code of 1986, as amended.

          Common Stock or Stock means shares of Common Stock of the Corporation,
     par value $1.00 per share, subject to adjustments made under Section 7.1 or
     by operation of law.

          Corporation means Lockheed Martin Corporation, a Maryland corporation,
     and its successors and assigns.

          Director means a member of the Board of Directors of the Corporation
     who is not an officer or employee of the Corporation or any of its
     subsidiaries.

          Disability means a "permanent and total disability" within the meaning
     of Section 22(e)(3) of the Code.

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          Dividend Equivalent means the amount of cash dividends or other cash
     distributions that would have been paid by the Corporation on Stock Units
     then credited to a Director's Stock Unit Account had those Stock Units been
     shares of common stock.

          Dividend Equivalent Stock Account means the bookkeeping account
     maintained by the Corporation on behalf of a Director which is credited
     with Dividend Equivalents in the form of Stock Units in accordance with
     Section 4.2.

          Effective Date means May 1, 1999, or such later date as is specified
     in an amendment or in the Plan.

          Exchange Act means the Securities Exchange Act of 1934, as amended
     from time to time.

          Fair Market Value means in the case of a Stock Unit the closing price
     of the Stock as reported on the composite tape of the New York Stock
     Exchange issues on the relevant date, or, if no sale of Stock is reported
     for that date, the next preceding day for which there is a reported sale
     and in the case of an Option shall mean the fair market value of an option
     to buy Stock granted on the relevant day as determined using the Black
     Scholes option pricing methodology.

          Option means a Nonqualified Stock Option to purchase shares of Common
     Stock with the terms and conditions as described in Article V.

          Plan means the Lockheed Martin Corporation Directors Equity Plan.

          Retirement means retirement from the Corporation pursuant to Section
     2.03 of the Corporation's By-Laws at the expiration of a Director's term.

          Stock Unit or Unit means a non-voting unit of measurement that is
     deemed for bookkeeping purposes to be equivalent to an outstanding share of
     Common Stock of the Corporation.

          Stock Unit Account means the bookkeeping account maintained by the
     Corporation on behalf of each Director which is credited with Stock Units
     in accordance with Section 4.1.

          Subsidiary means, as to any person, any corporation, association,
     partnership, joint venture or other business entity of which 50% or more of
     the voting stock or other equity interests (in the case of entities other
     than corporations), is owned or controlled (directly or indirectly) by that
     entity, or by one or more of the Subsidiaries of that entity, or by a
     combination thereof.

                                   ARTICLE III

                                  PARTICIPATION

     3.1. Award. Effective January 15, 2002, and on each Award Date thereafter
during the term of this Plan, each Director shall be granted, in the form
elected by the Director pursuant to Section 3.2, one of the following Awards:

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       (a) For Award Dates occurring in 2002 and thereafter during the term of
           this Plan, Units with a Fair Market Value of $75,000 credited to the
           Director's Stock Unit Account;

       (b) For Award Dates occurring in 2002 and thereafter during the term of
           this Plan, Units credited to the Director's Stock Unit Account with a
           Fair Market Value of $37,500 and Options to purchase shares of Stock
           with a Fair Market Value of $37,500; or

       (c) For Award Dates occurring in 2002 and thereafter during the term of
           this Plan, Options to purchase shares of Stock with a Fair Market
           Value of $75,000.

       (d) In the case of any Director who is not serving as a Director on the
           Award Date but becomes a Director following the immediately
           succeeding annual meeting of the Corporation, the Award granted to
           the Director on May 1 will be two-thirds (2/3) of the amount of the
           form elected by the Director pursuant to Section 3.1(a), (b), or (c).
           Awards made upon the filling of a vacancy in the Board of Directors
           at any other time of the year will be similarly prorated to reflect
           the portion of the year during which the individual serves as a
           Director.

       (e) In the case of a Director who will attain age 70 on or before the
           annual meeting following an Award Date and who will retire from the
           Board of Directors at that annual meeting, the award to be made to
           that Director will be one-third (1/3) of the amount of the form
           elected by the Director pursuant to Section 3.1(a), (b), or (c).

     For purposes of this Section 3.1, Fair Market Value shall be determined on
the Award Date.

     3.2.  Election. Prior to the Award Date, a Director must file an election
form, as provided by the Corporation, with the Secretary of the Corporation
specifying the form of the Award the Director elects to receive pursuant to
Section 3.1. A Director's election shall remain in effect for Awards made in
each subsequent calendar year, unless the Director files a revised election form
or written revocation of the election with the Secretary of the Corporation
before January 15 of the following year. A Director's election shall be
irrevocable after the Award for a particular year is made. Notwithstanding the
preceding sentences of Section 3.2, in a Director's first year of service on the
Board, an election shall be valid if it is filed within 30 days after the
Director commenced service as a Director (but in any event prior to the date on
which the Units are credited).

                                   ARTICLE IV

                                   STOCK UNITS

     4.1.  Stock Unit Account. If a Director elects the Award described in
either Section 3.1(a) or 3.1(b), the Stock Unit Account of such Director shall
be credited on the Award Date with either (i) Units determined pursuant to
Section 3.1(a) or (ii) Units determined pursuant to Section 3.1(b).

     4.2.  Dividend Equivalents; Dividend Equivalent Stock Account.

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          (a)  Allocation of Dividend Equivalents. Each Director shall be
entitled to receive Dividend Equivalents on the Units credited to his or her
Stock Unit Account and Dividend Equivalent Stock Account, both before and after
a termination of service. The Dividend Equivalents shall be credited to the
Director's Dividend Equivalent Stock Account in accordance with Section 4.2(b)
below.

          (b)  Dividend Equivalent Stock Account. The Director's Dividend
Equivalent Stock Account shall be credited with an additional number of Units
determined by dividing the amount of Dividend Equivalents by the Fair Market
Value of a share of Common Stock as of the date on which the dividend is paid.
The Units credited to a Director's Dividend Equivalent Stock Account shall be
allocated (for purposes of distribution) in accordance with Section 4.4(b) and
shall be subject to adjustment in accordance with Section 7.1.

     4.3. Vesting of Stock Unit Account and Dividend Equivalent Stock Account. A
Director's Units held in his or her Stock Unit Account shall vest on the first
anniversary of the Award Date for such Units. A Director's Units held in his or
her Dividend Equivalent Stock Account shall vest when the underlying Units in
the Stock Unit Account vest. If a Director's service as a Director terminates
for any reason, all nonvested Units and related Dividend Equivalents shall be
forfeited. Notwithstanding the provisions of this Section 4.3, all nonvested
Units and related Dividend Equivalents granted to a Director shall vest upon a
Change in Control or in the event of such Director's Retirement, death or
Disability.

     4.4. Distribution of Benefits.

          (a)  Commencement of Benefits Distribution. Subject to the terms of
Section 4.3 and this Section 4.4, each Director shall be entitled to receive a
distribution of his or her Accounts upon a termination of service (including but
not limited to a retirement or resignation) as a director of the Corporation.
Benefits shall be distributed at the time or times set forth in this Section
4.4.

          (b)  Manner of Distribution. The benefits payable under this Section
shall be distributed to the Director in a lump sum, unless the Director elects
in writing (on forms provided by the Corporation) by the time specified in
Section 4.4(f) to receive a distribution of benefits in approximately equal
annual installments for up to ten years. Elections with respect to any Units in
the Stock Unit Account shall apply to all Dividend Equivalent Units attributable
to those Stock Units, and to all Dividend Equivalent Units. Installment payments
shall commence as of the date the Accounts become distributable under Section
4.4(a). The amount of each installment shall be equal to (i) the Fair Market
Value of the Units allocated to Director's Stock Unit Account and Dividend
Equivalent Account, on the day immediately preceding the date of payment,
divided by (ii) the number of installments yet to be paid. Notwithstanding the
foregoing, if the vested balance remaining in a Director's Stock Unit Account
and Dividend Equivalent Stock Account is less than 50 Units, then the remaining
balance shall be distributed in a lump sum in the form of cash or Stock, as
previously elected by the Director. In the event of a Change in Control or a
Director's termination of services as a result of death or Disability, either
prior to or after the Director has terminated service, the benefits payable
under this Section shall be distributed in a lump sum in cash.

          (c)  Form of Distribution. Stock Units shall be paid and distributed
by means of a distribution of (i) an equivalent whole number of shares of Common
Stock or (ii) cash in an amount equal to the Fair Market Value of an equivalent
number of shares of Common Stock as of the business day immediately preceding
the distribution. Any fractional interest in a Unit shall be paid in cash on
final distribution. In the event of a termination of service, a Director may
elect to have Stock Units credited to the Director's Stock Unit Account and
Dividend Equivalent Stock Account paid and distributed in the form of cash or a
combination of whole shares of Common Stock and cash by making a written
election (on forms provided by the Corporation) at least six months prior to
receipt by a Director of any

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distribution as to the percentage the Director elects to receive in the form of
cash and the percentage the Director elects to receive in whole shares of Common
Stock.

          (d)  Sub-Accounts. The Administrator shall retain sub-accounts of a
Director's Accounts as may be necessary to determine which Units are subject to
any distribution elections under Section 4.4(b).

          (e)  Limitations of Distributions. Notwithstanding anything herein to
the contrary, no Units may be distributed prior to the six month anniversary of
the crediting of such Units to the Director's Stock Unit Account.

          (f)  Timing of Elections. A Director may change any election as to the
manner of distribution and file a new election choosing a lump sum or
installment payments with respect to all of the Director's Accounts or with
respect to one or more specific Awards, by executing and delivering to the
Company an election (on such form as prescribed by the Company) within the time
periods described in Section 4.4(f). An election must be made prior to the
Director's termination of service as a Director and (i) at least six months
before the date the first payment would be due and (ii) in a calendar year prior
to the calendar year in which the first payment would be due. In the event an
election fails to satisfy the terms of this Section 4.4(f), such election shall
be void and payment of a Director's Award shall commence under the Director's
previous valid election or, if none exists, shall be made in a lump sum.

     4.5. Limitations on Rights Associated with Units. A Director's Accounts
shall be memorandum accounts on the books of the Corporation. The Units credited
to a Director's Accounts shall be used solely as a device for the determination
of the number of shares of Common Stock to be distributed to such Director in
accordance with this Plan. The Units shall not be treated as property or as a
trust fund of any kind, and shall not create a security interest in any property
although the Corporation shall reserve shares of Common Stock to satisfy its
obligations under this Plan. All shares of Common Stock or other amounts
attributed to the Units shall be and remain the sole property of the
Corporation, and each Director's rights in the Units is limited to the right to
receive shares of Common Stock or cash in the future, in accordance with the
Plan. No Director shall be entitled to any voting or other stockholder rights
with respect to Units granted under this Plan. The number of Units credited
under this Article shall be subject to adjustment in accordance with Section
7.1.

                                    ARTICLE V

                                  STOCK OPTIONS

     All Options granted pursuant to the Plan shall be subject to the following
terms and conditions:

     5.1. Exercise Price. The exercise price of an Option shall be equal to 100%
of the Fair Market Value of the Stock on the day of the grant of the Option.

     5.2. Non-transferability of Options. Options shall not be assignable nor
transferable by the Director otherwise than by bequest or by the laws of
descent. Options shall be exercisable during the Director's lifetime only by the
Director or by his or her guardian or legal representative. The designation of a
Beneficiary is not a prohibited transfer.

     5.3. Vesting; Term of Options; limitations on exercisability. Options shall
become exercisable on the day following the first anniversary of the date the
Options are granted and, subject to Section 5.3, shall expire on the tenth
anniversary of the date the Options are granted. Notwithstanding the provisions
of this Section 5.3, upon a Change in Control or in the event a Director's
service as director

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terminates by reason of such Director's Retirement, death or Disability, all
options shall become exercisable, except that no Option will be exercisable
prior to the the six month anniversary of the granting of the Options to the
Director.

     5.4. Payment of Exercise Price. The Option's exercise price shall be paid
in cash at the time of exercise, except that in lieu of all or part of the cash,
the Director may tender Stock to the Corporation having a Fair Market Value
equal to the exercise price, (less any cash paid). The Fair Market Value of
tendered Stock shall be determined as of the close of the business day
immediately preceding the day on which the Options are exercised.

     5.5  Rights as Stockholder. A Director shall have no rights as a Common
Stockholder with respect to any unissued shares of Common Stock covered by an
Option until the date the Director exercises the Options and becomes the holder
of record of those shares of Common Stock. Except as provided in Section 7.1, no
adjustment or other provision shall be made for dividends or other stockholder
rights.

                                   ARTICLE VI

                                 ADMINISTRATION

     6.1. Administration. This Plan shall be self-executing and operated as a
formula plan. To the extent necessary for the operation of the Plan, it shall be
construed, interpreted and administered by the Board or a committee appointed by
the Board to act on its behalf under this Plan. Notwithstanding the foregoing,
but subject to Section 7.2 hereof, the Board shall have no discretionary
authority with respect to the amount or price of any Award granted under this
Plan and no Director shall participate in any decision relating solely to his or
her benefits (other than approval of the Award).

     6.2. Decisions Final; Delegation; Reliance; and Limitation on Liability.
Any determination of the Board or committee made in good faith shall be
conclusive. In performing its duties, the Board or the committee shall be
entitled to rely on public records and on information, opinions, reports or
statements prepared or presented by officers or employees of the Corporation or
other experts believed to be reliable and competent. The Board or the committee
may delegate ministerial, bookkeeping and other non-discretionary functions to
individuals who are officers or employees of the Corporation.

     Neither the Corporation nor any member of the Board, nor any other person
participating in any determination of any question under this Plan, or in the
interpretation, administration or application of this Plan, shall have any
liability to any party for any action taken or not taken in good faith under
this Plan or for the failure of an Award (or action or payment in respect of an
Award) to satisfy Code requirements for realization of intended tax
consequences, to qualify for exemption or relief under Rule 16b-3, or to comply
with any other law, compliance with which is not required by the Corporation.

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                                   ARTICLE VII

                          PLAN CHANGES AND TERMINATION

     7.1. Adjustments upon Changes in Common Stock. Upon the Corporation's
recapitalization, stock split (including a stock split in the form of a stock
dividend), reverse stock split, merger, combination, consolidation, or other
reorganization or any extraordinary dividend or other extraordinary distribution
in respect of the Stock (whether in the form of cash, Stock or other property),
or any split-up, spin-off, extraordinary redemption, or exchange of outstanding
Stock, or there shall occur any other similar corporate transaction or event in
respect of the Stock, or a sale of substantially all the assets of the
Corporation as an entirety, the Committee shall make a proportionate and
equitable adjustment consistent with the effect of any such event on
stockholders generally (but without duplication if Dividend Equivalents are
credited) in the maximum number of shares of Common Stock reserved under the
Plan, in the number of Units granted under the Plan, and in the number, kind and
exercise price of Options granted under the Plan to prevent dilution or
enlargement of the rights of Directors under the Plan and outstanding Options.

     7.2. Amendments. The Board of Directors shall have the right to amend this
Plan in whole or in part or to suspend or terminate this Plan. No amendment,
suspension, or termination, however, may cancel or otherwise adversely affect in
any way, without written consent, any Director's rights with respect to (i)
Stock Units and Dividend Equivalents credited to his or her Stock Unit Account
or Dividend Equivalent Stock Account or (ii) Options awarded prior to the
effective date of the amendment, suspension or termination.

     7.3. Term. This Plan shall remain in effect for a period of 10 years from
the Effective Date, but continuance of this Plan is not a contractual obligation
of the Corporation. In the event that the Board of Directors decides to
terminate this Plan, it shall notify the Directors of its action in writing, and
this Plan shall be terminated at the time set by the Board of Directors.

     7.4. Distribution of Shares. If this Plan terminates pursuant to Section
7.2, the distribution of the Accounts of a Director shall be made at the time
provided in Section 4.4 and in a manner consistent with the elections made
pursuant to Section 4.4 if any.

                                  ARTICLE VIII

                                  MISCELLANEOUS

     8.1. Limitation on Directors' Rights. Participation in this Plan shall not
give any Director the right to continue to serve as a member of the Board or any
rights or interests other than as provided in this Plan. No Director shall have
any right to any payment or benefit except to the extent provided in this Plan.
This Plan shall create only a contractual obligation of the Corporation to
provide the benefits described in the Plan and shall not be construed as
creating a trust. This Plan has no assets. Directors shall only have rights as
general unsecured creditors of the Corporation for any amounts credited or
vested and benefits payable under this Plan.

     8.2. Beneficiaries.

          (a)  Beneficiary Designation. Upon forms provided and in accordance
with procedures established by the Corporation, each Director may designate in
writing (and change a designation of) the Beneficiary or Beneficiaries (as
defined in Section 8.2(b)) that the Director chooses to

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<PAGE>

receive the Common Stock payable under this Plan after his or her death, subject
to applicable laws (including any applicable community property and probate
laws).

          (b)  Definition of Beneficiary. A Director's "Beneficiary" or
"Beneficiaries" shall be the person or persons, including a trust or trusts,
validly designated by the Director or, in the absence of a valid designation,
entitled by will or the laws of descent and distribution to receive the
Director's benefits under this Plan in the event of the Director's death.

     8.3. Corporation's Right to Withhold. The Corporation shall satisfy state
or federal income tax withholding obligations, if any, arising upon distribution
of a Director's Account or of shares of Stock upon the exercise of Options by
reducing the number of shares of Common Stock otherwise deliverable to the
Director by the appropriate number of shares (based on the Fair Market Value on
the day immediately preceding the payment) required to satisfy such tax
withholding obligation. If the Corporation, for any reason, cannot satisfy the
withholding obligation in accordance with the preceding sentence, the Director
shall pay or provide for payment in cash of the amount of any taxes which the
Corporation may be required to withhold with respect to the benefits hereunder.

     8.4. Benefits Not Assignable; Obligations Binding Upon Successors. Benefits
of a Director under this Plan shall not be assignable or transferable and any
purported transfer, assignment, pledge or other encumbrance or attachment of any
payments or benefits under this Plan, or any interest therein, other than
pursuant to Section 8.2, shall not be permitted or recognized. Obligations of
the Corporation under this Plan shall be binding upon successors of the
Corporation.

     8.5. Governing Law; Severability. The validity of this Plan or any of its
provisions shall be construed, administered and governed in all respects under
and by the laws of the State of Maryland. If any provisions of this instrument
shall be held by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions hereof shall continue to be fully
effective.

     8.6. Compliance With Laws. This Plan and the offer, issuance and delivery
of shares of Common Stock and/or the payment and deferral of compensation under
this Plan are subject to compliance with all applicable federal and state laws,
rules and regulations (including but not limited to state and federal reporting,
registration, insider trading and other securities laws) and to such approvals
by any listing agency or any regulatory or governmental authority as may, in the
opinion of counsel for the Corporation, be necessary or advisable in connection
therewith. Any securities delivered under this Plan shall be subject to such
restrictions, and the person acquiring the securities shall, if requested by the
Corporation, provide such assurances and representations to the Corporation as
the Corporation may deem necessary or desirable to assure compliance with all
applicable legal requirements.

     8.7. Plan Construction. It is the intent of the Corporation that this Plan
satisfy and be interpreted in a manner that satisfies the applicable
requirements of Rule 16b-3 so that Directors will be entitled to the benefits of
Rule 16b-3 or other exemptive rules under Section 16 of the Exchange Act and
will not be subjected to liability thereunder. Any contrary interpretation shall
be avoided.

     8.8. Headings Not Part of Plan. Headings and subheadings in this Plan are
inserted for reference only and are not to be considered in the construction of
this Plan.

                                      -11-<PAGE>

                                                                    Exhibit 10.3

                           LOCKHEED MARTIN CORPORATION

                      DIRECTORS DEFERRED COMPENSATION PLAN

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                          <C>
                                    ARTICLE I
                                     PURPOSE

                                   ARTICLE II
                                   DEFINITIONS

                                   ARTICLE III
                                  PARTICIPATION

3.1   Timing of Deferral Elections...........................................  4
3.2   Terms of Deferral Elections............................................  4

                                  ARTICLE IV
                             CREDITING OF ACCOUNTS

4.1   Crediting of Director's Fees...........................................  4
4.2   Crediting of Investment Earnings.......................................  4
4.3   Account Balance as Measure of Deferred Compensation....................  5

                                   ARTICLE V
                       PAYMENT OF DEFERRED COMPENSATION

5.1   Manner of Distribution.................................................  5
5.2   Commencement of Payments...............................................  6
5.3   Death Benefits.........................................................  6
5.4   Emergency Withdrawals..................................................  6
5.5   Status of Certain Directors............................................  6
5.6   Corporation's Right to Withhold........................................  6
5.7   Section 16 Limitations on Distributions................................  6

                                  ARTICLE VI
                 SPECIAL RULES FOR LUMP SUM RETIREMENT BENEFIT
                          AND LUMP SUM DEATH BENEFIT

6.1   Deferral of Lump Sum Benefits..........................................  7
6.2   Payment of Lump Sum Benefits...........................................  7
</TABLE>

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<TABLE>
<S>                                                                          <C>
                                   ARTICLE VII
                    ADMINISTRATION, AMENDMENT AND TERMINATION

7.1   Administration by Committee............................................  7
7.2   Amendment and Termination..............................................  7

                                 ARTICLE VIII
                                 MISCELLANEOUS

8.1   Limitation on Directors' Rights........................................  7
8.2   Beneficiaries..........................................................  7
8.3   Rights Not Assignable; Obligations Binding Upon Successors.............  8
8.4   Governing Law; Severability............................................  8
8.5   Annual Statements......................................................  8
8.6   Headings Not Part of Plan..............................................  8
8.7   Consent to Plan Terms..................................................  8
8.8   Effective Date.........................................................  8
8.9   Plan Construction......................................................  9
</TABLE>

                                       -2-

<PAGE>

                           LOCKHEED MARTIN CORPORATION
                      DIRECTORS DEFERRED COMPENSATION PLAN

                                 March 15, 1995
                           As Amended December 7, 1995
                            As Amended April 24, 1996
                          As Amended February 27, 1997
                           As Amended December 3, 1998
                          As Amended February 24, 1999
                           As Amended October 24, 2002

                                    ARTICLE I

                                     PURPOSE

     The purpose of this Plan is to give each non-employee Director of Lockheed
Martin Corporation the opportunity to be compensated for his or her service as a
Director on a deferred basis. The Plan is also intended to establish a method of
paying Director's compensation which will aid the Corporation in attracting and
retaining as members of the Board persons whose abilities, experience and
judgment can contribute to the success of the Corporation. In addition, by
providing Directors with the option of accruing earnings based on the
performance of Lockheed Martin Common Stock, the Plan is intended to more
closely align the economic interests of Directors with the interests of
stockholders generally.

                                   ARTICLE II

                                   DEFINITIONS

     Whenever the following terms are used in this Plan, they shall have the
meaning specified below, unless the context clearly indicates to the contrary:

     Account means the bookkeeping account maintained by the Corporation on
behalf of a participating Director which is credited with the Director's
Deferred Compensation, including investment earnings credited under Section 4.2.

     Beneficiary shall have the meaning specified in Section 8.2(b).

     Board of Directors or Board means the Board of Directors of the
Corporation.

     Committee means the Committee appointed to administer this Plan, as
provided in Section 7.1 hereof.

     Corporation means Lockheed Martin Corporation, a Maryland corporation and
its successors.

     Deferred Compensation means Director's Fees deferred pursuant to this Plan
and investment earnings credited thereto under Section 4.2. Deferred
Compensation also includes the Lump Sum Retirement Benefit deferred pursuant to
this Plan and investment earnings credited thereto under Section 4.2.

     Election Form means the form by which a Director elects to participate in
this Plan.

                                       -3-

<PAGE>

     Director means, except as provided in Section 5.5, a member of the Board of
Directors of the Corporation who is eligible to receive compensation in the form
of Director's Fees and who is not an officer or employee of the Corporation or
any of its subsidiaries.

     Director's Fees means the cash fees payable to a Director for services as a
Director and for services on any Committee of the Board, including the amount of
any retainer paid to a non-employee for services as Chairman of the Board.

                                       -4-

<PAGE>

     Effective Date means the effective date referred to in Section 8.8.

     Lump Sum Death Benefit means the actuarial value of the $100,000 death
benefit provided to Directors prior to May 1, 1999.

     Lump Sum Retirement Benefit means the value of the benefit earned under the
Lockheed Martin Corporation Directors Retirement Plan as determined upon
termination of that plan effective May 1, 1999.

     Plan means the Lockheed Martin Corporation Directors Deferred Compensation
Plan.

                                   ARTICLE III

                                  PARTICIPATION

     3.1  Timing of Deferral Elections. In order to defer Director's fees earned
in any calendar year, a Director must make a deferral election by executing and
filing an Election Form before the commencement of that calendar year. In the
case of a new Director, an election to defer Director's fees must be filed
within 30 days after the commencement of the Director's term of office and shall
apply only to fees for services after the date of such election. The deferral
election shall specify the manner in which earnings (or losses) on the deferred
amount shall accrue in accordance with Section 4.2 below. To the extent that a
Director elects that any portion of a deferred amount shall accrue earnings
based on the Lockheed Martin Common Stock Investment Option, such an election
shall be given effect only if (i) the election is irrevocably made at least six
(6) months prior to the effective date of the allocation or (ii) the crediting
of the deferred amount to the Lockheed Martin Common Stock Investment Option has
been approved by the Board of Directors (or a committee thereof that is
comprised of persons specified in Section 7.1). To the extent that a Director
makes an election to have Deferred Compensation credited to the Lockheed Martin
Common Stock Investment Option which is not in compliance with (i) or (ii)
above, the amount elected to be deferred into the Lockheed Martin Common Stock
Investment Option shall initially be allocated to the Interest Option until such
time as the allocation to the Lockheed Martin Common Stock Investment Option
would be in compliance with (i) or (ii) above, at which time the deferred amount
shall automatically be reallocated.

     3.2  Terms of Deferral Elections. A Director's deferral election for a
calendar year shall specify the percentage (which may equal 100%) of the
Director's Fees to be earned by the Director for that year which are to be
deferred under this Plan. A Director's deferral election shall remain in effect
for each subsequent calendar year, unless the Director duly files a revised
Election Form or written revocation of the election before the beginning of the
subsequent calendar year. A Director's deferral election shall be irrevocable
during any calendar year in which it is in effect.

                                   ARTICLE IV

                              CREDITING OF ACCOUNTS

     4.1  Crediting of Director's Fees. Director's Fees that a Director has
elected to defer shall be credited to the Director's Account as of the first day
of the month in which the Director's Fees would have been payable to the
Director if no deferral election had been made under this Plan. The elected
deferral percentage shall apply to all Director's Fees earned by the Director
during a calendar year.

                                       -5-

<PAGE>

     4.2  Crediting of Investment Earnings. Subject to the provisions of Section
3.1 above, as of the last day of each month, a Director's Account shall be
credited to reflect investment earnings (or loss) for the month, based on the
Director's investment selections under this Section 4.2. A Director may elect to
have his or her Account credited with investment earnings (or losses) for each
month as if the Director's Account balance had been invested in the following:

     (a)  Interest Option. Interest at a rate equal to one twelfth (1/12) of the
annual prime rate as set by Citibank, N.A., New York, New York, on the last day
of the preceding month.,

     (b)  S&P 500 Option. A return (or loss) equal to that of the published
index for the Standard & Poors 500 (with dividends) for the month will accrue.

     (c)  Lockheed Martin Common Stock Investment Option. Earnings (or losses)
shall be credited as if such amount had been invested in Lockheed Martin Common
Stock at the published closing price of the Corporation's Common Stock on the
New York Stock Exchange on the last trading day preceding the day as to which
such amount is deferred (or reallocated) into the Lockheed Martin Common Stock
Investment Option; this portion of a Director's Account shall reflect any
subsequent appreciation or depreciation in the market value of Lockheed Martin
Common Stock based on the published closing price of the stock on the New York
Stock Exchange on the last trading day of each month and shall reflect dividends
on the stock as if such dividends were reinvested in shares of Lockheed Martin
Common Stock.

     (d)  A combination of (a), (b) and (c).

A Director's initial investment selections must be made by the date that the
Director's initial deferral election takes effect. A Director may change his or
her investment selections with respect to all amounts credited to the Director's
Account, including amounts deferred in prior periods, provided that any such
change that would result in an increase or decrease in the portion of the
Director's Account allocated to the Lockheed Martin Common Stock Investment
Option shall only be effective if it is made pursuant to an irrevocable written
election made at least six months following the date of the Director's most
recent "opposite way" election with respect to either the Plan or any other plan
maintained by Lockheed Martin that provides for Discretionary Transactions (as
defined in Rule 16b-3). Subject to the foregoing, a change of investment
selections must be made by filing a revised Election Form in advance of the
month in which the change is to take effect.

     4.3  Account Balance as Measure of Deferred Compensation. The Deferred
Compensation payable to a Director (or the Director's Beneficiary) shall be
measured by, and shall in no event exceed, the sum of the amounts credited to
the Director's Account.

                                    ARTICLE V

                        PAYMENT OF DEFERRED COMPENSATION

     5.1  Manner of Distribution.

     (a)  Lump sum payments. Subject to the provisions of Section 5.6, a
Director's Deferred Compensation shall be paid as a lump sum cash payment equal
to the balance credited to the Director's Account on or about January 15th of
the calendar year that next follows the date of the termination of the
Director's status as a Director, unless the Director has elected to receive
installment payments in accordance with Section 5.1(b).

                                       -6-

<PAGE>

     (b)  Installment payments. A Director may elect to have the Director's
Deferred Compensation distributed in annual installments commencing on or about
January 15th of the calendar year that next follows the date of the
termination of the Director's status as a Director and continuing over a maximum
period of ten (10) years. The amount of each annual installment shall be
determined by dividing the Director's Account balance (or the portion of the
Account balance to which the installment election applies) on the December 31
preceding the payment date by the number of years remaining in the elected
installment period.

     (c)  Deferral For Directors Fees Earned in 1996. A Director may elect to
have the Director's Deferred Compensation earned during the 1996 calendar year
credited and paid as a lump sum under (a) or annual installments under (b)
except that payment (or installments, as the case may be) will be made (or
commence) on January 1, 1998, or as soon as practicable thereafter regardless of
whether the Director has terminated service as a Director.

     (d)  Timing of Elections. A Director may change any election as to the
manner of distribution and file a new election choosing a lump sum or
installment payments with respect to the payment of the Director's entire
Account, or with respect to fees deferred for specific years or with respect to
the specific benefits available under Article VI, by executing an election (on a
form prescribed by the Company) within the time periods described in this
Section 5.1(d). An election must be made prior to the Director's termination of
service as a director and (i) at least six months before the date the first
payment would be due and (ii) in a calendar year prior to the calendar year in
which the first payment would be due. In the event an election fails to satisfy
the terms of this Section 5.1(d), such election shall be void and payment shall
commence under the Director's previous valid election or, if none exists, shall
be paid in a lump sum.

     5.2  Commencement of Payments. Subject to the provisions of Section 5.6 and
except as provided in Sections 5.1(c) and 5.4, the payment of Deferred
Compensation to a Director shall be made or commence on or about January 15th
of the first calendar year following the year in which the Director ceases to be
a Director, whether due to resignation, retirement, disability, death, or
otherwise. Installment payments shall continue to be made in January of each
succeeding year until all installments have been paid.

     5.3  Death Benefits. Subject to the provisions of Section 5.6, in the event
that a Director dies before payment of the Director's Deferred Compensation has
commenced or been completed, the balance of the Director's Account shall be
distributed to the Director's Beneficiary commencing in the January following
the date of the Director's death in accordance with the manner of distribution
(lump sum or annual installments) elected by the Director for payments during
the Director's lifetime. However, upon good cause shown by a Beneficiary or
personal representative of the Director, the Committee, in its sole discretion,
may reject a Director's installment election and instead cause the Director's
death benefits to be paid in a lump sum.

     5.4  Emergency Withdrawals. In the event of an unforeseeable emergency
prior to the commencement of distributions or after the commencement of
installment payments, the Committee may approve a distribution to a Director (or
Beneficiary after the death of a Director) of the part of the Director's Account
balance that is reasonably needed to satisfy the emergency need. An Emergency
withdrawal will be approved only in a circumstance of severe financial hardship
to the Director (or Beneficiary after the death of the Director) resulting from
a sudden and unexpected illness or accident of the Director (or Beneficiary, as
applicable) or of a dependent of the Director (or Beneficiary, as applicable),
loss of property due to casualty, or other similar extraordinary or
unforeseeable circumstance

                                       -7-

<PAGE>

arising from events beyond the control of the Director (or Beneficiary, as
applicable). The investment earnings credited to the Director's Account shall be
determined as if the withdrawal had been debited from the Director's Account on
the first day of the month in which the withdrawal occurs.

     5.5  Status of Certain Directors.

     (a)  For purposes of Section 5.2, a retired Director who continues to
advise the Board of Directors under an Advisory Services Agreement shall be
treated as an active Director for the period that he or she continues to serve
under such agreement, if the Director so elects on or before April 25, 1996. An
election under this Section 5.5 shall not otherwise alter the Director's rights
under this plan. Once made, an election under this Section 5.5 shall be
irrevocable.

     (b)  For the purposes of Article VI, a member of the Board of Directors who
is not eligible for Director's Fees but who is eligible for a Lump Sum
Retirement Benefit shall be eligible to defer such compensation pursuant to this
Plan.

     5.6  Corporation's Right to Withhold. There shall be deducted from all
payments under this Plan the amount of taxes, if any, required to be withheld
under applicable federal or state tax laws. The Directors and their
Beneficiaries will be liable for payment of any and all income or other taxes
imposed on Deferred Compensation payable under this Plan.

     5.7  Section 16 Limitations on Distributions. Notwithstanding anything
contained herein to the contrary, no distribution of any portion of a Director's
Account credited to the Lockheed Martin Common Stock Investment Option shall be
made unless (i) the Board of Directors or Committee has approved the
distribution or (ii) at least six months have passed from the date the
Director's service on the Board has terminated.

                                   ARTICLE VI

                  SPECIAL RULES FOR LUMP SUM RETIREMENT BENEFIT
                           AND LUMP SUM DEATH BENEFIT

     6.1  Deferral of Lump Sum Benefits. The Lump Sum Retirement Benefit and the
Lump Sum Death Benefit for each Director shall be credited to that Director's
Account as of May 1, 1999. Subject to the provisions of Section 3.1 above, the
Director's investment selections for deferred Director's Fees shall be the
investment selection for a Director's Lump Sum Retirement Benefit and Lump Sum
Death Benefit and as of the last day of each month, a Director's Account shall
be credited to reflect investment earnings (or loss) for the month, based on the
Director's investment selections under Section 4.2.

     6.2  Payment of Lump Sum Benefits. The Lump Sum Retirement Benefit and the
Lump Sum Death Benefit shall be distributed as part of a Director's Deferred
Compensation in accordance with Article V. Subject to Section 5.7, a Director
may also elect to receive the Lump Sum Death Benefit and the Lump Sum Retirement
Benefit in a single lump sum payable on or about May 1, 2000, so long as prior
to May 1, 1999, the Director makes an irrevocable written election to receive
the lump sum payment. Any lump sum payment made pursuant to this Section 6.2
shall include amounts credited as investment earnings with respect to the Lump
Sum Retirement Benefit for the period from May 1, 1999 until April 30, 2000.
Notwithstanding anything herein to the contrary, no portion of a Director's Lump
Sum Retirement Benefit may be paid prior to May 1, 2000.

                                       -8-

<PAGE>

                                   ARTICLE VII

                    ADMINISTRATION, AMENDMENT AND TERMINATION

     7.1  Administration by Committee. This Plan shall be administered by a
Committee consisting of exclusively "non-employee directors" as that term is
defined in Rule 16b-3 ("Rule 16b-3") promulgated by the Securities and Exchange
Commission under Section 16 of the Securities Exchange Act of 1934 (the
"Exchange Act"). The Committee shall act by vote of a majority or by unanimous
written consent of its members. The Committee's resolution of any question
regarding the interpretation of this Plan shall be subject to review by the
Board, and the Board's determination shall be final and binding on all parties.

     7.2  Amendment and Termination. This Plan may be amended, modified, or
terminated by the Board at any time, except that no such action shall (without
the consent of affected Directors or, if appropriate, their Beneficiaries or
personal representatives) adversely affect the rights of Directors or
Beneficiaries with respect to compensation earned and deferred under this Plan
prior to the date of such amendment, modification, or termination.

                                  ARTICLE VIII

                                  MISCELLANEOUS

     8.1  Limitation on Directors' Rights. Participation in this Plan shall not
give any Director the right to continue to serve as a member of the Board or any
rights or interests other than as herein provided. No Director shall have any
right to any payment or benefit hereunder except to the extent provided in this
Plan. This Plan shall create only a contractual obligation on the part of the
Corporation as to such amounts and shall not be construed as creating a trust.
The Plan, in and of itself, has no assets. Directors shall have only the rights
of general unsecured creditors of the Corporation with respect to amounts
credited to or payable from their Accounts.

     8.2  Beneficiaries.

     (a)  Beneficiary Designation. Subject to applicable laws (including any
applicable community property and probate laws), each Director may designate in
writing the Beneficiary that the Director chooses to receive any payments that
become payable after the Director's death, as provided in Section 5.3. A
Director's Beneficiary designation shall be made on forms provided and in
accordance with procedures established by the Corporation and may be changed by
the Director at any time before the Director's death.

     (b)  Definition of Beneficiary. A Director's "Beneficiary" or
"Beneficiaries" shall be the person or persons, including a trust or trusts,
validly designated by the Director or, in the absence of a valid designation,
entitled by will or the laws of descent and distribution to receive the amounts
otherwise payable to the Director under this Plan in the event of the Director's
death.

     8.3  Rights Not Assignable; Obligations Binding Upon Successors. A
Director's rights under this Plan shall not be assignable or transferable and
any purported transfer, assignment, pledge or other encumbrance or attachment of
any payments or benefits under this Plan, or any interest thereon, other

                                       -9-

<PAGE>

than pursuant to Section 7.2, shall not be permitted or recognized. Obligations
of the Corporation under this Plan shall be binding upon successors of the
Corporation.

     8.4  Governing Law; Severability. The validity of this Plan or any of its
provisions shall be construed, administered, and governed in all respects under
and by the laws of the State of Maryland. If any provisions of this instrument
shall be held by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions hereof shall continue to be fully
effective.

     8.5  Annual Statements. The Corporation shall prepare and send a statement
to the Director (or to the Director's Beneficiary after the Director's death)
showing the balance credited to the Director's Account as of December 31 of each
year for which an Account is maintained with respect to the Director.

     8.6  Headings Not Part of Plan. Headings and subheadings in this Plan are
inserted for reference only and are not to be considered in the construction of
this Plan.

     8.7  Consent to Plan Terms. By electing to participate in this Plan, a
Director shall be deemed conclusively to have accepted and consented to all of
the terms of this Plan and to all actions and decisions of the Corporation,
Board, or Committee with regard to the Plan. Such terms and consent shall also
apply to and be binding upon each Director's Beneficiary or Beneficiaries,
personal representatives, and other successors in interest.

     8.8  Effective Date. This Plan shall become effective on March 15, 1995.

     8.9  Plan Construction. It is the intent of the Corporation that this Plan
satisfy and be interpreted in a manner that satisfies the applicable
requirements of Rule 16b-3 so that Directors will be entitled to the benefits of
Rule 16b-3 or other exemptive rules under Section 16 of the Exchange Act and
will not be subjected to avoidable liability thereunder. Any contrary
interpretation shall be avoided.

                                      -10-

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