Document:

<PAGE>

                                                                  Exhibit 10(mm)

This Document Constitutes Part of a Prospectus Covering Securities that have
been Registered under the Securities Act of 1933

                          LOCKHEED MARTIN CORPORATION
                DIVESTED BUSINESS DEFERRED MANAGEMENT INCENTIVE
                               COMPENSATION PLAN

                          (Adopted December 2, 1999)

<PAGE>

                                 ARTICLE I

PURPOSES OF THE PLAN

     The purposes of the Lockheed Martin Corporation Divested Business Deferred
Management Incentive Compensation Plan (the "DBDMICP") are to provide certain
key management employees who have deferred amounts under the Deferred Management
Incentive Compensation Plan ("DMICP") and who are employed in a business unit of
Lockheed Martin Corporation (the "Company") that has been identified as a
possible candidate for divestiture the opportunity to defer receipt of DMICP
accounts that would otherwise become payable following a divestiture.  Except as
expressly provided hereinafter, the provisions of this DBDMICP and the DMICP
shall be construed and applied independently of each other.

     The DBDMICP applies solely to amounts that have been deferred under the
DMICP and expressly does not apply to any special awards which may be made under
any of the Company's other incentive plans, except and to the extent
specifically provided under the terms of such other incentive plans and the
relevant awards.

                                  ARTICLE II

                                  DEFINITIONS

     Unless the context indicates otherwise, the following words and phrases
shall have the meanings hereinafter indicated:

     1.   ACCOUNT -- The bookkeeping account maintained by the Company for each
Participant which is credited with the Participant's Deferred Compensation and
earnings (or losses) attributable to the investment options selected by the
Participant, and which is debited to reflect distributions and forfeitures; the
portions of a Participant's Account allocated to different investment options
will be accounted for separately.

     2.   ACCOUNT BALANCE -- The total amount credited to a Participant's
Account at any point in time, including the portions of the Account allocated to
each investment option.

     3.   BENEFICIARY --  Unless a Participant designates otherwise on a form
provided by the Company which is on file with the Company before the
Participant's death, the same person or persons (including a trust or trusts)
validly designated by a Participant under the DMICP to receive distributions of
the Participant's DMICP account balance, if any, upon the Participant's death.
In the absence of a valid designation, or if the designated Beneficiary fails to
survive the Participant, the Beneficiary shall be the Participant's estate.  A
Participant may amend his or her Beneficiary designation at any
<PAGE>

time by filing another Beneficiary designation with the Company before the
Participant's death.

     4.   BOARD -- The Board of Directors of Lockheed Martin Corporation.

     5.   COMMITTEE -- The committee described in Section 1 of Article VIII.

     6.   COMPANY -- Lockheed Martin Corporation and its subsidiaries.

     7.   COMPANY STOCK INVESTMENT OPTION -- The investment option under which
the amount credited to a Participant's Account will be based on the market value
and investment return of the Company's Common Stock.

     8.   DEFERRAL AGREEMENT -- The written agreement executed by an Eligible
Employee on the form provided by the Company under which the Eligible Employee
elects to defer his or her DMICP account balance under this DBDMICP.

     9.   DEFERRED COMPENSATION -- The amount credited to a Participant's
Account under the DBDMICP.

     10   DIVESTITURE - A transaction which results in (i) the transfer of
control of the business unit divested to any person, corporation, association,
partnership, joint venture or other business entity of which less than 50% of
the voting stock or other equity interests (in the case of entities other than
corporations), is owned or controlled, directly or indirectly, by the Company,
one or more of the Company's subsidiaries or a combination thereof, (ii) the
Eligible Employee's employment continuing with such divested business unit or
being transferred from the Company to the other party to the Divestiture; and
(iii) the other party does not assume the liability for the outstanding account
balances in the DMICP of the Eligible Employees employed by the business
operation divested.

     11.  DIVESTITURE CANDIDATES - The business units of the Corporation that
have been identified as possible candidates for divestiture and whose employees
have been identified as eligible for this DBDMICP by the Vice President, Human
Resources.

     12.  DMICP -- The Lockheed Martin Corporation Deferred Management Incentive
Compensation Plan, adopted by the Board on July 27, 1995, as subsequently
amended.

     13.  ELIGIBLE EMPLOYEE -- An employee of the Company who is a participant
in the DMICP, who is employed by a Divestiture Candidate and who has satisfied
such additional requirements for participation in this DBDMICP as the Committee
may from time to time establish.  In the exercise of its authority under this
provision, the Committee shall limit participation in the Plan to employees whom
the Committee believes to be a select group of management or highly compensated
<PAGE>

employees within the meaning of Title I of the Employee Retirement Income
Security Act of 1974, as amended.

     14.  EXCHANGE ACT -- The Securities Exchange Act of 1934.

13
     15. INTEREST OPTION -- The investment option under which earnings will be
credited to a Participant's Account based on the interest rate applicable under
Cost Accounting Standard 415, Deferred Compensation.

     16.  PARTICIPANT -- An Eligible Employee who has elected to defer his or
her account under this DBDMICP and for whom such account has been deferred under
this DBDMICP.

     17.  PAYMENT DATE -- Means, as to any Participant, the January 15 or July
15 on or about on which payment to the Participant is to begin in accordance
with the Participant's election made pursuant to Section 2 of Article V.

     18.  SECTION 16 PERSON -- A Participant who at the relevant time is subject
to the reporting and short-swing liability provisions of Section 16 of the
Securities Exchange Act of 1934.

     19.  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
corporation), is owned or controlled (directly or indirectly) by that person, or
by one or more of the Subsidiaries of that person, or by a combination thereof.

     20.  TRADING DAY -- A day upon which transactions with respect to Company
Common Stock are reported in the consolidated transaction reporting system.

                                 ARTICLE III

                          ELECTION OF DEFERRED AMOUNT

     1.   Timing of Deferral Elections.  An Eligible Employee may elect to defer
his or her account balances in the DMICP under this DBDMICP by executing and
delivering to the Company a Deferral Agreement during a period of time as
designated by the Vice President, Human Resources as the election period
applicable to Eligible Employees of a particular Divestiture Candidate, provided
that any election by a Section 16 Person shall be subject to the provisions of
Section 4 of Article IV.  An Eligible Employee's Deferral Agreement shall be
irrevocable when delivered to the Company.
<PAGE>

     2.   Amount of Deferral Elections.  An Eligible Employee's deferral
election under this DBDMICP will apply to the entire balance of such Eligible
Employee's DMICP account.

                                 ARTICLE IV

                             CREDITING OF ACCOUNTS

     1.   Crediting of Deferred Compensation.  A Participant's account balance
in the DMICP that has been deferred under this DBDMICP in accordance with
Article III shall be credited to a Participant's Account as of the day on which
such balance would have been paid to the Participant if no Deferral Agreement
had been made.

     2.   Crediting of Earnings.  Earnings shall be credited to a Participant's
Account based on the investment option or options to which the Account has been
allocated, beginning with the day as of which Deferred Compensation (or any
reallocation under Section 4 or 5 of Article IV) is credited to the
Participant's Account.  Any amount distributed from a Participant's Account
shall be credited with earnings through the last day of the month preceding the
month in which a distribution is to be made pursuant to the Participant's
election as set forth in Article V.  The earnings credited under each of the
investment options shall be determined as follows:

          (a) Interest Option:  The portion of a Participant's Account allocated
     to the Interest Option shall be credited with interest, compounded monthly,
     at a rate equivalent to the then published rate for computing the present
     value of future benefits at the time cost is assignable under Cost
     Accounting Standard 415, Deferred Compensation, as determined by the
     Secretary of the Treasury on a semi-annual basis pursuant to Pub. L. 92-41,
     85 Stat. 97.

          (b) Company Stock Investment Option:  The portion of a Participant's
     Account allocated to the Company Stock Investment Option shall be credited
     as if such amount had been invested in the Company's Common Stock at the
     published closing price of the Company's Common Stock on the last Trading
     Day preceding the day as of which Deferred Compensation (or any
     reallocation under Section 4 or 5 of Article IV) is credited to the
     Participant's Account; this portion of the Participant's Account Balance
     shall reflect any subsequent appreciation or depreciation in the market
     value of the Company's Common Stock based on the 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 Company's Common Stock as if such dividends
     had been reinvested in the Company's Common Stock.

          (c) Interest Crediting For Late Payments:  Notwithstanding the
     investment option to which a Participant's Account has been allocated, in
     the event payment does not commence by the last day of the month in which
     the Payment Date occurs, earnings shall be credited on the Participant's
     entire
<PAGE>

     Account from the last day of the month preceding the Payment Date to
     the last day of the month preceding the actual commencement of payment at
     the rate set forth under Section 2(a) of this Article IV.  Interest
     credited under this Section 2(c) of this Article IV shall be paid on the
     date payment under the Plan first commences.

     3.   Selection of Investment Options.  Except as otherwise provided in this
DBDMICP, a Participant's investment selections under this DBDMICP shall be the
same as his or her selections under the DMICP, so that any amounts credited to
the Company Stock Investment Option under the DMICP shall be credited to Company
Stock Investment Option under this DBDMICP and any amounts credited to the
Interest Option under the DMICP shall be credited the Interest Option under this
DBDMICP.  A Participant's investment selections shall be irrevocable with
respect to amounts deferred, and no subsequent reallocations shall be made
except in accordance with Article IV, Section 5.

     4.   Special Rules for Section 16 Persons. Notwithstanding any other
provision in this DBDMICP, no amount shall be distributed to a Section 16 Person
under this DBDMICP unless the amount was allocated to the Participant's Account
at least six months prior to the date of distribution or no portion of the
Participant's Account was allocated to the Company Stock Investment Option.

     5.   Reallocations to Interest Option.  If benefit payments to a
Participant or Beneficiary are to be paid or commenced to be paid over a period
that extends more than six months after the date of a Divestiture in a business
unit in which a Participant is employed or the Participant's death, the
Participant or Beneficiary, as applicable, may elect irrevocably at any time
after the Divestiture or the Participant's death and before the commencement of
benefit payments to have the portion of the Participant's Account that is
allocated to the Company Stock Investment Option reallocated to the Interest
Option.  A reallocation under this Section 5 shall take effect as of the first
day of the month following the month in which an executed reallocation election
is delivered to the Company, but in the case of a Section 16 Person not earlier
than the first day of the seventh month following the month in which the
reallocation election is delivered to the Company.
<PAGE>

                                 ARTICLE V

                              PAYMENT OF BENEFITS

     1.   General.  The Company's liability to pay benefits to a Participant or
Beneficiary under this DBDMICP shall be measured by and shall in no event exceed
the Participant's Account Balance.  Except as otherwise provided in this
DBDMICP, a Participant's Account Balance shall be paid to him in accordance with
the Participant's elections under Sections 2 and 3 of this Article, and such
elections shall be continuing and irrevocable.  All benefit payments shall be
made in cash and, except as otherwise provided, shall reduce allocations to the
Interest Option and the Company Stock Investment Option in the same proportions
that the Participant's Account Balance is allocated between those investment
options at the end of the month preceding the date of distribution.

     2.   Election for Commencement of Payment.  At the time a Participant first
completes a Deferral Agreement, he or she shall elect from among the following
options governing the date on which the payment of benefits shall commence:

          (A)  Payment to begin on or about the January 15th or July 15th next
               following the first anniversary of the closing of a Divestiture
               which results in the Participant's termination of employment with
               the Company.

          (B)  Payment to begin on or about the January 15th or July 15th next
               following the second anniversary of the closing of a Divestiture
               which results in the Participant's termination of employment with
               the Company.

          (C)  Payment to begin on or about the January 15th or July 15th next
               following the third anniversary of the closing of a Divestiture
               which results in the Participant's termination of employment with
               the Company.

          (D)  Payment to begin on or about the January 15th or July 15th next
               following the fourth anniversary of the closing of a Divestiture
               which results in the Participant's termination of employment with
               the Company.

          (E)  Payment to begin on or about the January 15th or July 15th next
               following the fifth anniversary of the closing of a Divestiture
               which results in the Participant's termination of employment with
               the Company.
<PAGE>

The time for commencement of payment elected by a Participant shall apply to
amounts deferred under the DBDMICP notwithstanding any election made by the
Participant for commencement of payments under the DMICP.

     3.   Election for Form of Payment.  The form of payments applicable to a
Participant's Account Balance shall be the form of payment elected by the
Participant under the DMICP.  Such payment shall begin at the time elected by
the Participant under Article V, Section 2 and the form of payment will be
governed by Article V, Section 3.  In the case of an installment payment
election, the amount of each annual payment shall be determined by dividing the
Participant's Account Balance at the end of the month prior to such payment by
the number of years remaining in the designated installment period.  The
installment period may be shortened, in the sole discretion of the Committee, if
the Committee at any time determines that the amount of the annual payments that
would be made to the Participant during the designated installment period would
be too small to justify the maintenance of the Participant's Account and the
processing of payments.

     4.   Lack of Effect if Employment is Not Terminated Due to a Divestiture or
Liability for DMICP Accounts is Assumed by Another Party.  Notwithstanding an
Eligible Employee's payment elections under Sections 2 and 3, if the employment
of an Eligible Employee who makes an election under Article III is not
transferred to the other party in a Divestiture for which the election was made
or the other party to a divestiture assumes the liability for the outstanding
account balances in the DMICP of the Eligible Employees employed by the business
operation divested, the Eligible Employee's election under Article II will be
null and void and his or her account balance under the DMICP shall continue to
be governed by the terms of the DMICP.

     5.   Death Benefits.  Upon the death of a Participant before a complete
distribution of his or her Account Balance, the Account Balance will be paid to
the Participant's Beneficiary in accordance with the payment elections
applicable to the Participant.  If a Participant dies before the payment of
benefits has commenced, payments to the Beneficiary shall commence on the date
payments to the Participant would have commenced under Article V. Whether the
Participant dies before or after the commencement of distributions, payments to
the Beneficiary shall be made for the period or remaining period elected by the
Participant.

     6.   Early Distributions in Special Circumstances.  Notwithstanding a
Participant's payment elections under Sections 2 and 3 of this Article V, a
Participant or Beneficiary may request an earlier distribution in the following
limited circumstances:

          (a)  Hardship Distributions.  Subject to the last sentence of this
               Section 6(a) with respect to Section 16 Persons, the Committee
               shall have the power and discretion at any time to approve a
               payment to a Participant if the Committee determines that the
               Participant is suffering from a serious financial emergency
               caused by circumstances beyond the Participant's control which
               would cause
<PAGE>

               a hardship to the Participant unless such payment were made. Any
               such hardship payment will be in a lump sum and will not exceed
               the lesser of (i) the amount necessary to satisfy the financial
               emergency (taking account of the income tax liability associated
               with the distribution), or (ii) the Participant's Account
               Balance. In the event that a Section 16 Person seeks a hardship
               withdrawal under this Section 6(a), the distribution will be made
               first out of the portion of the Participant's Account, if any,
               allocated to the Interest Option; if the hardship distribution
               cannot be satisfied in full out of amounts allocated to the
               Interest Option, no distribution will be made from the portion of
               the Participant's Account allocated to the Company Stock
               Investment Option until the seventh month following the month in
               which such amount was credited to the Participant's Account.

          (b)  Withdrawal with Forfeiture.  A Participant may elect at any time
               to withdraw ninety percent (90%) of the amount credited to the
               Participant's Account.  If such a withdrawal is made, the
               remaining ten percent (10%) of the Participant's Account shall be
               permanently forfeited. In the event that a Section 16 Person
               seeks a withdrawal under this Section 6(b), any portion of the
               Section 16 Person's Account allocated to the Company Stock
               Investment Option will not be subject to distribution or
               forfeiture until the seventh month following the month in which
               such amount was credited to the Participant's Account, which
               election shall be irrevocable when made; any portion of the
               Section 16 Person's Account allocated to the Interest Option will
               be subject to immediate distribution and forfeiture; the ten
               percent forfeiture shall be separately applied to each such
               portion of the Section 16 Person's Account at the time of
               distribution.

          (c)  Death or Disability.  In the event that a Participant dies or
               becomes permanently disabled before the Participant's entire
               Account Balance has been distributed, the Committee, in its sole
               discretion, may modify the timing of distributions from the
               Participant's Account, including the commencement date and number
               of distributions, if it concludes that such modification is
               necessary to relieve the financial burdens of the Participant or
               Beneficiary.

     7.   Acceleration upon Change in Control.

          (a)  Notwithstanding any other provision of the DBDMICP, the Account
               Balance of each Participant shall be distributed in a single lump
               sum within fifteen (15) calendar days following a "Change in
               Control" of the Company.
<PAGE>

          (b)  For purposes of this DBDMICP, a Change in Control shall include
               and be deemed to occur upon the following events:

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

               (2)  The Company 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 Company (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 Company representing 25% or
                    more of the combined voting power of the Company's then
                    outstanding securities entitled to vote in the election of
                    directors of the Company.

               (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).
<PAGE>

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

          (c)  Notwithstanding the provisions of Section 7(a), if a distribution
               in accordance with the provisions of Section 7(a) would result in
               a nonexempt short-swing transaction under Section 16(b) of the
               Exchange Act with respect to any Section 16 Person, then the date
               of distribution to such Section 16 Person 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.

          (d)  This Section 7 shall apply only to a Change in Control of
               Lockheed Martin Corporation and shall not cause immediate payout
               of Deferred Compensation in any transaction involving the
               Company's sale, liquidation, merger, or other disposition of any
               subsidiary.

          (e)  The Committee may cancel or modify this Section 7 at any time
               prior to a Change in Control.  In the event of a Change in
               Control, this Section 7 shall remain in force and effect, and
               shall not be subject to cancellation or modification for a period
               of five years, and any defined term used in Section 7 shall not,
               for purposes of Section 7, be subject to cancellation or
               modification during the five year period.

     8.   Deductibility of Payments.  In the event that the payment of benefits
in accordance with the Participant's elections under Sections 2 and 3 would
prevent the Company from claiming an income tax deduction with respect to any
portion of the benefits paid, the Committee shall have the right to modify the
timing of distributions from the Participant's Account as necessary to maximize
the Company's tax deductions.  In the exercise of its discretion to adopt a
modified distribution schedule, the Committee shall undertake to have
distributions made at such times and in such amounts as most closely approximate
the Participant's elections, consistent with the objective of maximum
deductibility for the Company.  The Committee shall have no authority to reduce
a Participant's Account Balance or to pay aggregate benefits less than the
Participant's Account Balance in the event that all or a portion thereof would
not be deductible by the Company.
<PAGE>

     9.   Change of Law.  Notwithstanding anything to the contrary herein, if
the Committee determines in good faith, based on consultation with counsel, that
the federal income tax treatment or legal status of the Plan has or may be
adversely affected by a change in the Internal Revenue Code, Title I of the
Employee Retirement Income Security Act of 1974, or other applicable law or by
an administrative or judicial construction thereof, the Committee may direct
that the Accounts of affected Participants or of all Participants be distributed
as soon as practicable after such determination is made, to the extent deemed
necessary or advisable by the Committee to cure or mitigate the consequences, or
possible consequences of, such change in law or interpretation thereof.

     10.  Tax Withholding.  To the extent required by law, the Company shall
withhold from benefit payments hereunder, or with respect to any Deferred
Compensation hereunder, any Federal, state, or local income or payroll taxes
required to be withheld and shall furnish the recipient and the applicable
government agency or agencies with such reports, statements, or information as
may be legally required.

                                 ARTICLE VI

                        EXTENT OF PARTICIPANTS' RIGHTS

     1.   Unfunded Status of Plan.  This DBDMICP constitutes a mere contractual
promise by the Company to make payments in the future, and each Participant's
rights shall be those of a general, unsecured creditor of the Company.  No
Participant shall have any beneficial interest in any specific assets that the
Company may hold or set aside in connection with this DBDMICP.  Notwithstanding
the foregoing, to assist the Company in meeting its obligations under this
DBDMICP, the Company may set aside assets in a trust described in Revenue
Procedure 92-64, 1992-2 C.B. 422, and the Company may direct that its
obligations under this DBDMICP be satisfied by payments out of such trust.  The
assets of any such trust will remain subject to the claims of the general
creditors of the Company.  It is the Company's intention that the Plan be
unfunded for Federal income tax purposes and for purposes of Title I of the
Employee Retirement Income Security Act of 1974, as amended.

     2.   Nonalienability of Benefits.  A Participant's rights under this
DBDMICP shall not be assignable or transferable and any purported transfer,
assignment, pledge or other encumbrance or attachment of any payments or
benefits under this DBDMICP, or any interest therein shall not be permitted or
recognized, other than the designation of, or passage of payment rights to, a
Beneficiary.
<PAGE>

                                 ARTICLE VII

                           AMENDMENT OR TERMINATION

     1.   Amendment.  The Board may amend, modify, suspend or discontinue this
DBDMICP at any time subject to any shareholder approval that may be required
under applicable law, provided, however, that no such amendment shall have the
effect of reducing a Participant's Account Balance or postponing the time when a
Participant is entitled to receive a distribution of his Account Balance.
Further, no amendment may alter the formula for crediting interest to
Participants' Accounts with respect to amounts for which deferral elections have
previously been made, unless the amended formula is not less favorable to
Participants than that previously in effect, or unless each affected Participant
consents to such change.

     2.   Termination.  The Board reserves the right to terminate this DBDMICP
at any time and to pay all Participants their Account Balances in a lump sum
immediately following such termination or at such time thereafter as the Board
may determine; provided, however, that if a distribution in accordance with the
provisions of this Section 2 would otherwise result in a nonexempt short-swing
transaction under Section 16(b) of the Exchange Act, the date of distribution
with respect to any Section 16 Person 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.

     3.   Transfer of Liability.  The Board reserves the right to transfer to
another entity all of the obligations of Company with respect to a Participant
under this DBDMICP if such entity agrees pursuant to a binding written agreement
to assume all of the obligations of the Company under this DBDMICP with respect
to such Participant.

                                 ARTICLE VIII

                                ADMINISTRATION

     1.   The Committee.  This DBDMICP shall be administered by the Compensation
Committee of the Board or such other committee of the Board as may be designated
by the Board and constituted so as to permit this DBDMICP to comply with the
disinterested administration requirements of Rule 16b-3 of the Exchange Act.
The members of the Committee shall be designated by the Board.  A majority of
the members of the Committee (but not fewer than two) shall constitute a quorum.
The vote of a majority of a quorum or the unanimous written consent of the
Committee shall constitute action by the Committee.  The Committee shall have
full authority to interpret the DBDMICP, and interpretations of the DBDMICP by
the Committee shall be final and binding on all parties.
<PAGE>

     2.   Delegation and Reliance.  The Committee may delegate to the officers
or employees of the Company the authority to execute and deliver those
instruments and documents, to do all acts and things, and to take all other
steps deemed necessary, advisable or convenient for the effective administration
of this DBDMICP in accordance with its terms and purpose, except that the
Committee may not delegate any authority the delegation of which would cause
this DBDMICP to fail to satisfy the applicable requirements of Rule 16b-3.  In
making any determination or in taking or not taking any action under this
DBDMICP, the Committee may obtain and rely upon the advice of experts, including
professional advisors to the Company.  No member of the Committee or officer of
the Company who is a Participant hereunder may participate in any decision
specifically relating to his or her individual rights or benefits under the
DBDMICP.

     3.   Exculpation and Indemnity.  Neither the Company nor any member of the
Board or of the Committee, nor any other person participating in any
determination of any question under this DBDMICP, or in the interpretation,
administration or application thereof, shall have any liability to any party for
any action taken or not taken in good faith under this DBDMICP or for the
failure of the DBDMICP or any Participant's rights under the DBDMICP to achieve
intended tax consequences, to qualify for exemption or relief under Section 16
of the Exchange Act and the rules thereunder, or to comply with any other law,
compliance with which is not required on the part of the Company.

     4.   Facility of Payment.  If a minor, person declared incompetent, or
person incapable of handling the disposition of his or her property is entitled
to receive a benefit, make an application, or make an election hereunder, the
Committee may direct that such benefits be paid to, or such application or
election be made by, the guardian, legal representative, or person having the
care and custody of such minor, incompetent, or incapable person.  Any payment
made, application allowed, or election implemented in accordance with this
Section shall completely discharge the Company and the Committee from all
liability with respect thereto.

     5.   Proof of Claims.  The Committee may require proof of the death,
disability, incompetency, minority, or incapacity of any Participant or
Beneficiary and of the right of a person to receive any benefit or make any
application or election.

     6.   Claim Procedures.  The procedures when a claim under this DBDMICP is
denied by the Committee are as follows:

          (A)      The Committee shall:

               (i)        notify the claimant within a reasonable time of such
                          denial, setting forth the specific reasons therefor;
                          and

               (ii)       afford the claimant a reasonable opportunity for a
                          review of the decision.
<PAGE>

          (B)  The notice of such denial shall set forth, in addition to the
               specific reasons for the denial, the following:

               (i)  identification of pertinent provisions of this
                    DBDMICP;

               (ii) such additional information as may be relevant to the denial
                    of the claim; and

               (iii)  an explanation of the claims review procedure and advice
                    that the claimant may request an opportunity to submit a
                    statement of issues and comments.

          (C)  Within sixty days following advice of denial of a claim, upon
               request made by the claimant, the Committee shall take
               appropriate steps to review its decision in light of any further
               information or comments submitted by the claimant.  The Committee
               may hold a hearing at which the claimant may present the basis of
               any claim for review.

          (D)  The Committee shall render a decision within a reasonable time
               (not to exceed 120 days) after the claimant's request for review
               and shall advise the claimant in writing of its decision,
               specifying the reasons and identifying the appropriate provisions
               of the DBDMICP.

                                 ARTICLE IX

                     GENERAL AND MISCELLANEOUS PROVISIONS

     1.   Neither this DBDMICP nor a Participant's Deferral Agreement, either
singly or collectively, shall in any way obligate the Company to continue the
employment of a Participant with the Company, nor does either this DBDMICP or a
Deferral Agreement limit the right of the Company at any time and for any reason
to terminate the Participant's employment.  In no event shall this DBDMICP or a
Deferral Agreement, either singly or collectively, by their terms or
implications constitute an employment contract of any nature whatsoever between
the Company and a Participant.  In no event shall this DBDMICP or a Deferral
Agreement, either singly or collectively, by their terms or implications in any
way obligate the Company to award compensation to any Eligible Employee, whether
or not the Eligible Employee is a Participant in the DBDMICP, nor in any other
way limit the right of the Company to change an Eligible Employee's compensation
or other benefits.

     2.   Compensation deferred under this DBDMICP shall not be treated as
compensation for purposes of calculating the amount of a Participant's benefits
or contributions under any pension, retirement, or other plan maintained by the
Company, except as provided in such other plan.
<PAGE>

     3.   Any written notice to the Company referred to herein shall be made by
mailing or delivering such notice to the Company at 6801 Rockledge Drive,
Bethesda, Maryland 20817, to the attention of the Vice President, Human
Resources.  Any written notice to a Participant shall be made by delivery to the
Participant in person, through electronic transmission, or by mailing such
notice to the Participant at his or her place of residence or business address.

     4.   In the event it should become impossible for the Company or the
Committee to perform any act required by this Plan, the Company or the Committee
may perform such other act as it in good faith determines will most nearly carry
out the intent and the purpose of this DBDMICP.

     5.   By electing to become a Participant hereunder, each Eligible Employee
shall be deemed conclusively to have accepted and consented to all of the terms
of this DBDMICP and all actions or decisions made by the Company, the Board, or
Committee with regard to the DBDMICP.

     6.   The provisions of this DBDMICP and the Deferral Agreements hereunder
shall be binding upon and inure to the benefit of the Company, its successors,
and its assigns, and to the Participants and their heirs, executors,
administrators, and legal representatives.

     7.   A copy of this DBDMICP shall be available for inspection by
Participants or other persons entitled to benefits under the DBDMICP at
reasonable times at the offices of the Company.

     8.   The validity of this DBDMICP or any of its provisions shall be
construed, administered, and governed in all respects under and by the laws of
the State of Maryland, except as to matters of Federal law.  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.

     9.   This DBDMICP and its operation, including but not limited to, the
mechanics of deferral elections, the issuance of securities, if any, or the
payment of cash hereunder is subject to compliance with all applicable federal
and state laws, rules and regulations (including but not limited to state and
federal insider trading, registration, reporting and other securities laws) and
such other approvals by any listing, regulatory or governmental authority as
may, in the opinion of counsel for the Company, be necessary or advisable in
connection therewith.

     10.  It is the intent of the Company that this DBDMICP satisfy and be
interpreted in a manner, that, in the case of Participants who are or may be
Section 16 Persons, satisfies any applicable requirements of Rule 16b-3 of the
Exchange Act or other
<PAGE>

exemptive rules under Section 16 of the Exchange Act and will not subject
Section 16 Persons to short-swing profit liability thereunder. If any provision
of this DBDMICP would otherwise frustrate or conflict with the intent expressed
in this Section 10, that provision to the extent possible shall be interpreted
and deemed amended so as to avoid such conflict. To the extent of any remaining
irreconcilable conflict with this intent, the provision shall be deemed
disregarded. Similarly, any action or election by a Section 16 Person with
respect to the DBDMICP to the extent possible shall be interpreted and deemed
amended so as to avoid liability under Section 16 or, if this is not possible,
to the extent necessary to avoid liability under Section 16, shall be deemed
ineffective. Notwithstanding anything to the contrary in this DBDMICP, the
provisions of this DBDMICP may at any time be bifurcated by the Board or the
Committee in any manner so that certain provisions of this DBDMICP are
applicable solely to Section 16 Persons. Notwithstanding any other provision of
this DBDMICP to the contrary, if a distribution which would otherwise occur is
prohibited or proposed to be delayed because of the provisions of Section 16 of
the Exchange Act or the provisions of the DBDMICP designed to ensure compliance
with Section 16, the Section 16 Person involved may affirmatively elect in
writing to have the distribution occur in any event; provided that the Section
16 Person shall concurrently enter into arrangements satisfactory to the
Committee in its sole discretion for the satisfaction of any and all
liabilities, costs and expenses arising from this election.

     11.  At no time shall the aggregate Account Balances of all Participants to
the extent allocated to the Company Stock Investment Option exceed an amount
equal to the then fair market value of 5,000,000 shares of the Company's Common
Stock, nor shall the cumulative amount of compensation deferred under this
DBDMICP by all Eligible Employees exceed $250,000,000.

                                 ARTICLE X

                                EFFECTIVE DATE

     This DBDMICP was adopted pursuant to a resolution of the Board on December
2, 1999 and became effective on such date.<PAGE>

                                                                  Exhibit 10(nn)

                     RELEASE AND CONFIDENTIALITY AGREEMENT

     Lockheed Martin Corporation (the "Corporation") and I, James A. Blackwell,
voluntarily enter into this Release, Noncompete and Confidentiality Agreement
("Release") and agree as follows:

     Benefit Payable.  In exchange for the Enhanced Termination Benefits as
  described in the Letter, originally dated ___, from ____, Vice President,
  Human Resources, and the terms of which are incorporated herein by reference,
  on my own behalf and on behalf of my successors, assigns and representatives,
  I hereby irrevocably and unconditionally release any and all Claims, as
  described below, that I may now have against the Released Parties listed
  below.   I agree that the Enhanced Termination Benefits, including but not
  limited to the extension of my termination date from November 30, 1999 to
  January 31, 2000, the $200,000 relocation allowance and the consulting
  arrangement, are greater in value than any benefit to which I am otherwise
  entitled.

     Covenant Not to Compete.  I acknowledge that upon receipt of full payment
  of all amounts due ($1,918,800.00) under the Retention Agreement between me
  and the Corporation dated November 1, 1997 ("Retention Agreement") payable on
  or about February 1, 2000, I am fully bound by the terms of the Covenant Not
  to Compete Provision set forth in Section 5 of the Retention Agreement, which
  reasonably restricts my employment and business opportunities through January
  31, 2001.  In consideration for the lump sum payment in the amount of
  $288,000, payable on or about February 1, 2000 (which amount represents the
  collective consideration for this Covenant Not to Compete as well as payment
  for services rendered, if any, by me pursuant to a two-year consulting
  arrangement, set forth in a separate agreement between me and the
  Corporation), I agree to extend the Covenant Not to Compete obligation, set
  forth in  Section 5 of the Retention Agreement, for another 12 month period
  beyond its current expiration date of January 31, 2001.  Therefore, for a
  period extending from February 1, 2001 through January 31, 2002, I shall not
  engage in any business (whether as an officer, director, owner, employee,
  partner or other direct or indirect participant) competing with that of the
  Corporation in any area in which the Corporation is conducting any business on
  the date of my termination.  For such period, I shall also not interfere with,
  disrupt, or attempt to disrupt the relationship, contractual or otherwise,
  between the Corporation and any customer, supplier or employee of the
  Corporation.

  It is the desire and intent of the parties that the provisions of this
  Covenant Not to Compete shall be enforced to the fullest extent permissible
  under the laws and public policies applied in each jurisdiction in which
  enforcement is sought.  Accordingly, if any particular portion of this
  Covenant Not to Compete is adjudicated to be invalid or unenforceable, this
  Covenant Not to Compete shall be deemed amended to delete therefrom the
  portion thus adjudicated to be invalid or unenforceable, such deletion to
<PAGE>

  apply only with respect to the operation of this provision in the particular
  jurisdiction in which such adjudication is made.

     Claims Not Released. I agree that I will not receive any severance benefits
  in connection with my termination under any corporate severance plan or
  policy.   By this agreement, I am not releasing any rights to benefits I may
  have under the Retention Agreement or rights to benefits under any of the
  Corporation's other benefit programs.

     Claims Released.  Subject only to the exception noted in the previous
  paragraph, I agree to waive and fully release any and all claims of any nature
  whatsoever (known and unknown) ("Claims") that I may now have or have had
  against the Corporation, its affiliates, subsidiaries, fiduciaries and the
  directors, officers, employees, shareholders and agents of any of the
  foregoing ("Released Parties").  These Claims released include, but are not
  limited to, claims that in any way relate to my employment with the
  Corporation or the termination of that employment, and any claims for monetary
  damages, wages or other personal remedy sought in any legal proceeding or
  charge filed with any court, federal, state or local agency either by me or by
  a person claiming to act on my behalf or in my interest.

  I understand that the Claims I am releasing might have arisen under many
  different local, state and federal statutes, regulations, case law and/or
  common law doctrines.  By this agreement, I specifically, but without
  limitation, agree to release all of the Released Parties from Claims under any
  corporate severance plan or policy; the WARN Act (which requires that advance
  notice be given of certain workforce reductions); Title VII of the Civil
  Rights Act of 1964, as amended (which prohibits discrimination based on race,
  color, national origin, religion, or sex); the Civil Rights Act of 1866 (which
  prohibits discrimination based on race or color); the Age Discrimination in
  Employment Act and the Older Worker Benefit Protection Act (which prohibit
  discrimination based upon age); the Americans with Disabilities Act and
  Sections 503 and 504 of the Rehabilitation Act of 1972 (which prohibit
  discrimination based upon disability); the Equal Pay Act (which prohibits
  paying men and women unequal pay for equal work); or any other local, state or
  federal statutes prohibiting discrimination or retaliation on these or any
  other grounds or otherwise governing the employment relationship.  The
  Released Claims also include any Claims against the Released Parties relating
  to defamation, invasion of privacy, infliction of emotional distress, or any
  other Claim based upon any theory of personal injury or breach of express or
  implied contract or covenant of good faith and fair dealing. I warrant that I
  have not assigned or transferred any Claims described in this Release to any
  third parties.

     California provision. This release extends to all Claims that I may now
  have, even claims unknown at this time, and is an express waiver by me of the
  protection of Section 1542 of the Civil Code of California or any other
  similar provision under any other state's laws.  Section 1542 of the Civil
  Code states:
<PAGE>

     "A general release does not extend to claims which the creditor does not
     know or suspect to exist in his favor at the time of executing the release,
     which if known to him must have materially affected his settlement with the
     debtor." (For the purposes of this Release of Claims, the employee would be
     considered the "creditor" and the Corporation would be considered the
     "debtor").
<PAGE>

Continuing obligation of nondisclosure, confidentiality and other restrictions.
Throughout the duration of my employment with the Corporation, I have had access
to and may have generated a substantial amount of information that is
proprietary and confidential to the Corporation.  Additionally, I  may have had
access to certain third-party proprietary information that had been provided in
confidence to the Corporation.  In consideration of my employment by the
Corporation, I have undertaken an obligation, both during and following my
employment, not to use or disclose to others, any Proprietary Information,
except as authorized by the Corporation. "Proprietary Information" means any
information of the Corporation or of others which has come into the
Corporation's or my possession, custody or knowledge in the course of my
employment that has independent economic value as a result of its not being
generally known to the public and is the subject of reasonable means to preserve
the confidentiality of the information.  Proprietary Information includes
(without limitation) information, whether written or otherwise, regarding the
Corporation's earnings, expenses, marketing information, cost estimates,
forecasts, bid and proposal data, financial data, trade secrets, products,
procedures, inventions, systems or designs, manufacturing or research processes,
material sources, equipment sources, customers and prospective customers,
business plans, strategies, buying practices and procedures, prospective and
executed contracts and other business arrangements or business prospects, except
to the extent such information becomes readily available to the general public
lawfully and without breach of a confidential, contractual, or fiduciary duty.
By signing this Release, I acknowledge and agree that I have a continuing
obligation to not use or disclose Proprietary Information. Further, all
materials to which I have had access, or which were furnished or otherwise made
available to me in connection with the services performed for the Corporation
shall be and remain the property of the Corporation.  All such materials,
documents and information, including any Proprietary Information and all
reproductions thereof shall be returned by me promptly to the Corporation.

I further agree that, for a period of 12 months from the date of this Release, I
will not make any slanderous or libelous public statements, whether oral or
written, regarding the Corporation, its stockholders, directors, officers,
employees, agents, technology, or products.  For the purposes of this Release,
the term "public statement" shall include any communication to any person with
the exception of  internal communications to officials of the Corporation made
by me in the course of the performance of my duties as an employee or consultant
of the Corporation.

I understand and agree that the existence and terms of this Release shall be
maintained in strict confidence. I agree that I shall not disclose the existence
or terms of this Release to any other person except my spouse, members of my
immediate family, my legal and financial advisors in connection with tax returns
and estate planning and as otherwise required by law. Any disclosure of the
existence or terms of this Release by any of the aforesaid persons shall be
deemed to be an unauthorized disclosure by me and a violation of this Release.
<PAGE>

I agree that if at any time I violate any provision of this Release, including
but not limited to these confidentiality provisions, the Corporation shall
immediately cease payment of any of the Enhanced Termination Benefits (including
termination of any existing consultant agreement) and pursue any other remedies
available to the Corporation, including injunctive or other equitable relief.
The Corporation cannot necessarily be reasonably or adequately compensated in
money damages in an action at law in the event I breach my obligations under
this Release, because such obligations are of a unique, special and personal
character and of peculiar value to the Corporation. The parties acknowledge and
agree that this confidentiality provision shall not affect my obligations to
cooperate with any U.S. government investigation or to respond truthfully to any
lawful governmental inquiry or to give truthful testimony in court.

Other provisions. The parties agree that this Release prohibits my ability to
pursue any Claims or charges against the Released Parties seeking monetary
relief or other remedies for myself and/or as a representative on behalf of
others. This agreement does not affect my ability to cooperate with any future
ethics, legal or other investigations, whether conducted by the Corporation or
any governmental agencies.

A determination by a court or arbitrator that any provision of this Release is
invalid, illegal or unenforceable shall not affect the validity, legality or
enforceability of any other provision of this Release.
<PAGE>

Excepting only the Retention Agreement, this document contains all of the
agreements between me and the Corporation relating to my termination of
employment, and supersedes any prior agreements or representations between us as
to the subjects covered herein.  This Release may be modified, supplemented or
superseded only in a written document signed by both parties.

This Release shall be governed by and construed in accordance with the laws of
the State of Maryland, without giving effect to the conflict of law provisions
thereof.

By signing below, in addition to releasing all Claims described herein, I
acknowledge that:

a) I have been advised to consult with an attorney prior to signing this
Release;

b) I have been given at least 21 days to consider the actual terms of this
Release. I understand that I must deliver this signed Release to the Corporation
in the care of  ____, Vice President, Human Resources, whose office is located
at the following address:  6801 Rockledge Drive,  Bethesda, MD 20817, or send
this Release certified mail, return receipt requested, to Lockheed Martin
Corporation,  Attention: ____, Vice President, Human Resources at the same
address so that it is received by the Corporation on or before ______.

c) I understand that I may revoke this Release within seven (7) calendar days
from the date of signing, in which case this Release shall be null and void and
of no force and effect on the Corporation or me.  I further understand and
acknowledge that to be effective, the revocation must be in writing and either
personally delivered to the Corporation to the Corporation in the care of ____,
Vice President, Human Resources, whose office is located at the following
address: 6801 Rockledge Drive,  Bethesda, MD 20817, or sent via certified mail,
return receipt requested, to Lockheed Martin Corporation,  Attention:  _____,
Vice President, Human Resources at the same address so that it is received by
the Corporation in by 5:00 p.m. on or before the seventh (7th) calendar day
after I sign this Release.  If I revoke this Release, I understand and agree
that my effective termination date shall be ____ or the date of my revocation,
whichever date is sooner.

d) I have read this Release, and I am fully aware of the legal effects of the
Release.  I have chosen to execute the Release freely, without reliance upon any
promises or representations made by the Corporation other than those contained
in this Release and the Letter.
<PAGE>

Dear _____:

The purpose of this letter ("Letter") is to set forth options concerning your
termination of employment from Lockheed Martin Corporation (the "Corporation").
This Letter reflects terms that you and I have negotiated since the date of my
original letter to you on November 22, 1999.  Several drafts of this Letter have
been delivered to you and revised during this negotiation process.  The letter
delivered to you on November 22nd set forth two proposals and included a Release
and Confidentiality Agreement for your review and consideration.  This Letter
also sets forth an option requiring the Release, Noncompete and Confidentiality
Agreement, the form of which has also been the subject of our negotiations and
is substantially similar to the original form attached to the November 22nd
letter with the addition of a negotiated covenant not to compete provision.
Other than establishing a calendar year 2000 payment date in the event you elect
the Enhanced Termination Benefits, this Letter does not affect the terms of the
Retention Agreement between you and the Corporation, dated November 1, 1997
("Retention Agreement"), the terms of which survive any other agreements between
you and the Corporation.

As I notified you earlier this month, your termination date was initially
scheduled for November 30, 1999.  However, as initially set forth in my November
22nd letter to you, in order to give you at least 21 calendar days from November
22, 1999 to review and consider the terms of the Release, Noncompete and
Confidentiality Agreement ("Release"), you were notified that you would be
placed on vacation leave status on December 1, 1999 until December 13, 1999 in
lieu of the November 30th termination date.   If you elect the Enhanced
Termination Benefits described in Part I of this Letter, you will receive the
benefits described in Part I and Part II of this Letter, and your termination
date will be extended to January 31, 2000. If you forego the Enhanced
Termination Benefits, you will receive the benefits described in Part II of this
Letter, and your termination date will be on the date you notify me of your
decision to forego the Enhanced Termination Benefit option, or on December 13,
1999, whichever date is sooner. You must inform me of your choice on or before
December 13, 1999.

Part I
------
The Corporation offers you the following termination benefits ("Enhanced
Termination Benefits") in consideration for signing the Release, a copy of which
is attached to this Letter.  You have 21 calendar days to consider this offer,
which expires on December 13, 1999.  To be eligible for the Enhanced Termination
Benefit you must sign and deliver the Release to my office by close of business
on December 13, 1999. You may sign and return the Release earlier at your
option.   Provided you timely deliver the signed Release to my office and
further provided you do not revoke the Release within the 7-day revocation
period, the Corporation will provide the following Enhanced Termination
Benefits:
<PAGE>

 .    Extension of Termination Date -- In lieu of your previously scheduled
     -----------------------------
     termination date of November 30, 1999, you will be placed on vacation pay
     status from December 1, 1999 through January 31, 2000. You will receive
     holiday pay rather than vacation pay for the Corporation's designated
     holidays during this period.

     On January 31, 2000, your employment will be terminated. This will enable
     you to retire from active service on February 1, 2000, provided you submit
     the necessary retirement paperwork prior to January 31, 2000.

     Stock option vesting rules are governed by the Lockheed Martin Corporation
     1995 Omnibus Performance Award Plan and the Award Agreement issued to you.
     Under the Award Agreement, your vested options will continue to be
     exercisable for the duration of their term. By remaining on the payroll
     through January 31, 2000 and retiring effective February 1, 2000, this
     would allow your unvested options to continue to vest on the schedule
     contained in your Award Agreement, and once vested will be exercisable for
     the duration of their term. With this extension of your termination date,
     under the Award Agreement, the last increment of your 1998 grant should
     vest on January 22, 2000. Under the Award Agreement, your retirement from
     active service on February 1, 2000, will vest you in the first 50% of your
     1999 grant and the remaining 50% of your 1999 grant will vest on
     February 1, 2001.

     The extension of your termination date will impact the timing of the
     payment of the amount due ($1,918,800.00) under the Retention Agreement
     between you and the Corporation, dated November 1, 1997. This payment will
     be made on or about February 1, 2000. In the event that you do not elect
     the Enhanced Termination Benefits, this payment shall be made no later than
     December 13, 1999. You have acknowledged that the payment of $1,918,800.00
     under the Retention Agreement was properly calculated pursuant to Section
     3a of that agreement.

 .    Consulting and Noncompete Agreement.  The Corporation will pay you a lump
     -----------------------------------
     sum in the amount of $288,000, payable on or about February 1, 2000 as
     collective consideration for 1) Covenant not to Compete obligation in the
     Release which extends the noncompete obligation set forth in your Retention
     Agreement by an additional 12 months (through January 31, 2002) and 2)
     services to be rendered, if any, up to 48 days per year during a two-year
     consulting arrangement with an effective date of February 1, 2000. Although
     the specific terms of the consulting arrangement will be set forth in a
     Consultant Agreement to be signed by both parties, generally it will
     require that you provide up to 48 days of consulting work per year for two
     years (from 2-1-00 through 1-31-02). Days worked in excess of 48 per year
     will be compensated at $3,000 per day. For purposes of calculating the 48
     days per year under the agreement, each year will begin on February 1st of
     2000 and 2001, respectively. The Corporation will not be allowed to
     terminate the consulting agreement unless you are in default under its
     terms or if the agreement terminates due to unlawful conduct. The
     consulting agreement will also include appropriate, but reasonable
     restrictions on your ability to terminate the agreement prior to its
<PAGE>

     expiration on January 31, 2002. The noncompete obligation in the Release
     will survive its entire term, through January 31, 2002, regardless of any
     termination of the consulting agreement.

 .    Moving Allowance.  The Corporation will pay you a lump sum of $200,000,
     -----------------
     which represents the agreed upon estimate of the cost of relocating outside
     of Maryland, increased to include estimated taxes. This payment will be
     made on or about February 1, 2000.

 .    MICP Award.   In connection with your Management Incentive Compensation
     ------------
     Plan (MICP) participation for plan year 1999, we will recommend to the
     Management Development & Compensation Committee of the Board of Directors
     (hereafter "MD&C Committee") an individual target rating of no less than
     1.0 for the 1999 plan year. However, as you know, the determination
     regarding payment and amount of MICP awards is within the discretion of the
     MD&C Committee and is governed by the terms of the MICP plan document. The
     individual target rating is only one of the factors considered by the MD&C
     Committee in determining the amount of any MICP award. You will not be
     eligible for MICP participation in plan year 2000.

 .    Financial Counseling/Tax Preparation.  If you retire on February 1, 2000,
     ------------------------------------
     you will be eligible for reimbursement of up to $10,000 for covered
     financial counseling and tax preparation expenses incurred in calendar year
     2001. In lieu of reimbursement for actual expenses, the Corporation will
     pay you $10,000 in a lump sum, less applicable tax withholdings. This
     payment will be made on or about February 1, 2000. (If you do not elect the
     Enhanced Termination Benefits, then you will only be eligible for this
     benefit for expenses incurred in 1999 and 2000. The Financial Counseling /
     Tax Preparation benefit for 1999 and 2000 is described in Part II of this
     Letter.)

 .    Personal Umbrella Liability Policy ($5 million).  The current policy will
     -----------------------------------------------
     be paid through November 30, 2000. As a retired Officer, you will be
     eligible to continue this policy on an individual basis by paying the
     annual premium. Seabury L. Smith, the Corporation's insurance broker for
     this coverage, will contact you prior to the December 1, 2000, renewal to
     offer continuation of coverage.

 .    Country Club Membership.  You may maintain your membership at the ________
     -----------------------
     Country Club, which was initially purchased by the Corporation. The
     Corporation will not be responsible for paying any past or future dues or
     fees associated with your club membership.

 .    Cellular Telephones.  The Corporation will give you the cellular telephones
     --------------------
     currently in your possession, which were initially purchased by the
     Corporation and provided for your business use. The Corporation will not be
     responsible for paying for your cellular telephone service or air time
     associated with cellular calls unless the air time expense is submitted and
     approved as a reimbursable business expense incurred on behalf of the
     Corporation during the remainder of your employment or during the term of
     your consulting agreement.
<PAGE>

 .    Laptop Computer.  The Corporation will give you the IBM Thinkpad Laptop
     ----------------
     computer currently in your possession, which was initially purchased by the
     Corporation and provided for your business use.

 .    Fax Machine.  The Corporation will give you the Canon FAX-B360IF fax
     ------------
     machine currently in your possession, which was initially purchased by the
     Corporation and provided for your business use.

 .    Executive Physical Exam.  You will be eligible to receive the Corporation's
     ------------------------
     standard executive physical exam during the calendar year 2000, at the
     Corporation's expense.

Part II
The following benefits are also available to you upon termination.  These
benefits are not conditioned upon signing and returning the Release:

 .    LTIP Awards.  You will be eligible for prorated amounts for the 1999
     --------------
     through 2000 and 1999 through 2001 LTIP performance periods based upon your
     termination date of December 13, 1999. The prorated payment will be based
     on 12 months of participation in each of the performance periods (13 months
     of participation in each of the performance periods, if you elect the
     Enhanced Termination Benefits) and the payout level authorized for each
     performance period. Your LTIP Awards, if any, will be payable at the same
     time LTIP Awards are paid to other eligible employees.

 .    Financial Counseling/Tax Preparation. You will be eligible for
     ------------------------------------
     reimbursement of up to $10,000 per year for covered financial counseling
     and tax preparation expenses incurred in calendar years 1999 (to the extent
     not already reimbursed to date) and 2000. In lieu of reimbursement for
     actual expenses, the Corporation will pay you 1) $10,000, less any amounts
     already reimbursed for calendar year 1999 in a lump sum, less applicable
     withholding taxes, and 2) $10,000 in a lump sum, less applicable tax
     withholdings, for calendar year 2000. If you elect the Enhanced Termination
     Benefits, this payment will be made on or about February 1, 2000. If you do
     not elect the Enhanced Termination Benefits, this lump sum payment will be
     made no later than five (5) days after either December 13, 1999 or the date
     upon which you notify me of your election, whichever day is sooner.

 .    Life Insurance.  Any life insurance elected by you under FlexOptions may be
     converted to an individual policy in accordance with the terms of the
     governing insurance policy.

 .    Elected Officer Post-Retirement Death Benefit.  As a retired Officer of the
     ---------------------------------------------
     Corporation, you will have a death benefit equal to 1 1/2 times your annual
     base salary.

 .    Deferred MICP.  Amounts deferred under the Lockheed Martin Corporation
     -------------
     Deferred Management Incentive Compensation Plan will be paid out in
     accordance with the terms of your existing distribution elections. If your
     distribution elections either defer payment for more than six months past
     your termination date or provide for a payout over a period of more than
     six months, you may elect prior to the commencement of payments (but after
     termination of employment) to transfer the portion allocated to the Company
     Stock Investment Option to the Interest Option. The transfer will be
     effective on the first day of the seventh month after your election.
<PAGE>

 .    Supplemental Savings Plan.  Amounts deferred under the Lockheed Martin
     -------------------------
     Corporation Supplemental Savings Plan will be paid out in accordance with
     your existing payout elections.

 .    Severance Payments.  You will not be eligible for severance benefits under
     ------------------
     any program or plan offered by the Corporation to its employees who are
     laid off as a result of a reduction in force, including the Severance
     Benefit Plan for Eligible Salaried Employees, the benefits described in CPS
     528 or any other severance benefit program.

 .    Vacation.  All accrued but unused vacation will be paid in a lump sum
     --------
     following termination of employment. Vacation pay will be calculated
     according to your base salary rate as of November 30, 1999.

For the purposes of this Letter, the term  "Corporation" includes the
Corporation and its affiliates as well as the predecessors of the Corporation
and its affiliates.  The terms of this Letter shall be governed by and construed
in accordance with the laws of the State of Maryland and the conflict of law
provisions of Maryland law which might apply the laws of another jurisdiction
will not be applicable.

You will be responsible for any income tax liabilities associated with the
termination benefits described in this Letter.  With the exception of the
relocation costs described in Part I of the Letter, none of the benefits include
a tax gross up feature.  The Corporation will comply with all tax law
requirements, including requirements governing tax withholdings and income
reporting.

This Letter is not intended as a summary plan description or plan document for
any of the benefit plans referenced herein.  If there is any conflict between
this Letter and the official plan documents, the official plan documents
(including your award agreements) will govern.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]