qualified default investment alternative notice · qualified default investment alternative notice...

109aNotP17

November 10, 2017

Qualified Default Investment Alternative Notice

This notice applies to the Lockheed Martin Corporation Salaried Savings Plan (the SSP or the Plan).

The Plan has a number of investment options in which you can invest your retirement plan assets. As a participant in the SSP, you are responsible for directing your contributions among the Plan’s investment options.

The investment options in the Plan are explained in the Investment Options Guide (Guide). The Guide is a part of the Summary Plan Description (SPD) for the Plan. The SPD may also include Summaries of Material Modifications which updates the Guide.

The Plan’s investment options include the Target Date Funds (TDFs). Each TDF:

• has an investment strategy that is designed to be appropriate for a particular time horizon based on an anticipated retirement date;

• is diversified, investing in a mix of underlying separate stock, bond and other asset class portfolios; and

• is designed to provide an age-appropriate asset allocation in order to produce sufficient returns to meet retirement goals for the average participant.

There are no guarantees that a TDF’s investment objectives will be met.

Lockheed Martin Corporation, as plan sponsor/plan fiduciary, has chosen the TDFs as the Qualified Default Investment Alternative (QDIA) for the SSP. A QDIA is a default investment alternative or option, as defined under rules issued by the U.S. Department of Labor, chosen by the Plan’s fiduciary for those instances when participants have not chosen how to invest their retirement plan account. The specific TDF chosen as the QDIA is described below under “Automatic Investment of Contributions”.

The TDFs are the default investment option for employee contributions, Company contributions other than Company Matching contributions, and for situations where contributions might be made in the absence of participant direction, such as the investment of proceeds from settlements.

TDF returns are reduced by the expenses of the underlying investment portfolios. These expenses include investment management fees and administrative expenses. The aggregate annual investment management fees for each TDF can range from approximately .15% to .82% of TDF assets, and over time the aggregate annual administrative expenses for each TDF can range from approximately .03% to .09% of TDF assets, but are expected to average approximately .05%. Hence, total annual expenses can range from approximately .18% to .91% of TDF assets over time.

Note: Company Matching contributions are automatically invested in the Employee Stock Ownership Plan (ESOP) Fund.

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Automatic Investment of Contributions If you do not direct the investment of your account into any of the Plan’s investment options, your contributions and any Company Contributions for which you may be eligible, except the Company Match, will be invested automatically in the TDF based on your birth date, per the following table.

Target Date Funds – Birth Date Ranges

Fund Name Birth Date Range

Target Date Fund 2060 January 1, 1993 or after

Target Date Fund 2055 January 1, 1988 - December 31, 1992

Target Date Fund 2050 January 1, 1983 – December 31, 1987









Target Date Fund 2005 December 31, 1942 or before

Default Investment Exceptions

• Prior to 1/1/2007, the default investment was the Stable Value Fund

• For participants born after December 31, 1987, the default investment option during the period

1/1/2007 to 1/3/2010 was TDF 2050


1/4/2010 to 1/1/2015 was TDF 2055

If one of these exceptions applies to you, your account balance and future contributions will continue to be invested in the default investment option until you change your investment election.

Right to Direct Investment out of the QDIA If your account is invested in the QDIA as a result of your choice not to provide investment directions, you have the right to discontinue your investment in the QDIA and to invest your account balance in the other investment options available under your plan.

You have a 120-day period to make changes on the date of your initial default investment into the QDIA. During this period you are entitled to transfer the amount invested in the QDIA to the other investment options without incurring any additional fees or expenses (other than ongoing fees and expenses related to the operation of the TDFs) and without being subject to any restrictions (such as reinvesting in a TDF for 30 days after transferring out of that investment option).

However, the Plan maximum of 12 trades per calendar year (with at least one trade per calendar quarter and one final trade opportunity to the Stable Value Fund at the end of the calendar year) will continue to apply.

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Note about your Default Investment when Birth Date is missing from Account Record A participant whose account in the Plan is established through the transfer of his/her account balance from a plan of an acquired company and whose birth date is missing from their account record, has the opportunity in advance of their account transfer to supply their birth date and select any of the Plan’s investment options. If such participants do not provide a birth date or make investment elections, the default investment fund will be Target Date Fund 2005.

Additional Information or Assistance If you want to change your investment elections, have any questions about this document, or want to obtain a copy of the SPD, including the Investment Options Guide:

• Access the Savings Plan Web Tool via LM People at https://lmpeople.lmco.com via the Intranet (https://www.lmpeople.com via the Internet) > Pay and Benefits > Savings Plan. Or, go directly to https://lmco.voya.com.

• Call the Savings Plan Information Line: - Toll-free within the U.S.: 800-444-4015 - From outside the U.S.: 904-791-2020 - For TDD communication services for the hearing impaired: 800-579-5708

Customer service representatives are available Monday through Friday 8 a.m. to 8 p.m. Eastern time, except on New York Stock Exchange holidays.

https://lmpeople.lmco.com/

https://www.lmpeople.com/

https://lmco.voya.com/

109hNotP17

November 10, 2017

Notice of Automatic Enrollment and Automatic Escalation in the Salaried Savings Plan

This notice:

• provides important information about the automatic enrollment feature in the Lockheed Martin Corporation Salaried Savings Plan (the SSP or the Plan);

• explains how contributions resulting from automatic enrollment are invested and how to change your contributions to the Plan;

• specifies the conditions under which you may request a refund of contributions made to the Plan resulting from automatic enrollment; and

• serves as a reminder for those employees who have been automatically enrolled in the Plan and whose contributions to the Plan may be automatically increased annually.

Additional information about the Plan is included in the Plan’s Summary Plan Description (SPD).

Automatic enrollment Automatic enrollment applies to all new employees, rehired employees, or employees who first become eligible to participate in the Plan as a result of either a transfer or their business unit becoming a participating unit in the Plan.

Effective 30 days after your date of hire, rehire, or transfer into one of the business units that participate in the Plan, 3% of your eligible compensation will be automatically withheld from your pay each week on a before-tax basis and contributed to the Plan, unless you choose to opt out or enroll in the Plan at a different contribution percent.

Automatic escalation If you are automatically enrolled in the SSP and you do not change your contribution percent or opt out of contributing to the Plan, your contribution percent will be increased by 1% annually until your contribution percent reaches 8%.

The first year that your contribution percent will be automatically increased is the year after your initial automatic enrollment. The annual escalation date is established by Lockheed Martin Corporation (the Company) and typically occurs in February or March. If you are subject to automatic escalation you will be notified at the beginning of the year and will be provided instructions on how to opt out.

Changing your contribution percent at any time after the automatic escalation has begun will cancel your selection for automatic escalation.

Your automatic contributions to the Plan are withheld from your pay and are not subject to federal income taxes at that time. Your contributions are deposited into your Plan account on a before-tax basis and can grow over time with earnings. Your account will be subject to federal income taxes when funds are withdrawn.

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Note: Your total contribution will be eligible for the Company match in accordance with the SSP’s matching provisions and formula. The Company will match 50 cents for each dollar you contribute, up to 8% of pay (a maximum of 4% of pay).

You control the amount you contribute. You may decide to do nothing, in which case you will be automatically enrolled with automatic annual increases, or you may choose to contribute an amount that better meets your specific needs. For example, you may want to get the full amount of the Company’s matching contribution by contributing at least 8% of your eligible pay. Under the terms of the Plan, you can contribute up to 40% of your eligible pay (Internal Revenue Code rules may limit the amount of your contributions that can be made on a before-tax basis).

You can opt out of automatic enrollment or change your contribution percent by accessing the Savings Plan Web Tool or by calling the Savings Plan Information Line. If you do not want to contribute to the Plan, you have 30 days from your date of eligibility to opt out before your contributions will automatically begin.

Once you opt out of automatic escalation, you will not be subject to automatic escalation again.

Except as set forth in the Refund of Your Automatic Enrollment Contributions section below, contributions to the Plan, generally must remain in the Plan until you terminate employment or qualify for an in-service withdrawal or loan. The limits on your ability to withdraw your money may be important to you in deciding how much, if any, to contribute to the Plan. See the Plan’s SPD for more details.

Other Contribution Options You may choose to contribute (before-tax, Roth 401(k) and/or after-tax) immediately upon becoming eligible rather than waiting to be automatically enrolled. Additional information on the various types of contributions, limits, and other important details are included in the Plan enrollment kit and in the SPD.

Refund of Your Automatic Enrollment Contributions You may request a refund of contributions to the Plan as a result of automatic enrollment within 90 days of the first payroll period when the automatic enrollment took effect. Your refund request will apply to all automatic enrollment contributions made since the automatic enrollment started.

If you wish to request a refund of contributions that have been made to the Plan as a result of automatic enrollment, you may do so by logging on to the Savings Plan Web Tool or calling the Savings Plan Information Line.

The automatic enrollment contributions refunded to you will be adjusted for any gains or losses, and will be treated as taxable income for the plan year. The payment will not be eligible for rollover and will not be subject to the additional 10% early withdrawal penalty incurred for premature distributions from a retirement plan.

If you elect to receive a refund of contributions due to automatic enrollment, your future employee contributions to the plan will be stopped. You will also forfeit all Company matching contributions made to your refunded automatic enrollment contributions.

You may restart employee contributions to the Plan at a later date by accessing the Savings Plan Web Tool or by calling the Savings Plan Information Line. If you choose to restart your contributions, the automatic enrollment contributions that were refunded will count in the determination of how much you may contribute during that same year, subject to applicable Internal Revenue Code annual limitations.

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How Will My Plan Account Be Invested? The Plan offers a wide range of investment options. You can choose the how to invest your contributions among the Plan’s investment options. You can also change the way your contributions are invested from time to time.

Target Date Funds (TDFs) are the default investment options for the Plan. If you have not designated an investment election, your contributions are automatically invested in one of the Plan’s TDFs based on your birth date, per the following table. (This also applies to Company Contributions for which you may be eligible, but does not apply to Company Matching contributions to the Plan, which are automatically invested in the Employee Stock Ownership Plan (ESOP) Fund).
















• Prior to 1/1/2007, the default investment was the Stable Value Fund


1/1/2007 to 1/3/2010 was TDF 2050


1/4/2010 to 1/1/2015 was TDF 2055

If one of these exceptions applies to you, your account balance and future contributions will continue to be invested in the default investment option until you change your investment elections.

You can change your investment elections for your existing balance or future contributions by accessing the Savings Plan Web Tool or the Savings Plan Information Line.

Under the terms of the Plan, you may transfer assets to other investment options up to 12 times per year. However, if you transfer out of any investment option in the plan, you cannot transfer back into that particular investment option for 30 calendar days, unless you are were automatically enrolled and your account is invested in the default TDF because you did not provide investment directions. In this case, for a 120-day period beginning on the date of your initial default investment, if you transfer all or a portion of the amount automatically invested in your default TDF to the other investment options, you can transfer back into your default TDF.

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The Investment Options Guide (Guide) gives more detailed information on the investment options in the Plan. The Guide is a part of the SPD for the Plan. The SPD may also include Summaries of Material Modifications which update the Guide.

You may obtain performance data by accessing the Morningstar Investment Profiles on the Savings Plan Web Tool. These Investment Profiles contain specific investment information for each of the savings plans’ investment options and are updated quarterly.

You may also obtain summary plan and investment-related information, including information on expenses for the investment options, on the Participant Disclosure Notice, a legal document prepared annually for participants in the SSP. The Participant Disclosure Notice is available by accessing the Savings Plan Web Tool or calling the Savings Plan Information Line.

Target Date Funds (TDFs)

Objective The TDFs provide professional investment management and offer participants a simple, one-step approach to fund selection. Because the underlying asset mix of a portfolio is one of the key drivers for successful investment management, each TDF is designed to provide an age-appropriate asset allocation in order to produce sufficient returns to meet retirement goals for the average participant. There are no guarantees that the TDFs’ investment objectives will be met.

Composition and Strategy The TDFs invest in a number of underlying investment portfolios created specifically for the TDFs. Each of these portfolios may be further sub-divided to allow several different managers within a portfolio. Every three months the asset mix of each TDF is rebalanced to adjust gradually to a more conservative asset mix. This process is referred to as a Glide Path, and is used to avoid making significant asset mix changes at one time. The TDFs may also generate some income by loaning securities to creditworthy financial institutions.

Factors Affecting Performance The TDFs’ investments in common stock are subject to considerable investment and stock market risk, including the possibility that stock prices will decline over short or even extended periods. Foreign stocks can be volatile due to changing trade patterns and economic policies, political and social instability and currency exchange rate fluctuations. Small to mid-sized company stocks carry additional risk due to more volatile cash flow and earnings.

The TDFs’ fixed income/bond investments are sensitive to interest rate changes. When rates rise, bond values tend to decline and when rates fall, bond values tend to rise.

The TDFs’ diversifier investments are intended to provide diversification and uncorrelated returns to stocks and bonds. These diversifier investments, which may include, but are not limited to, global real estate, commodities, and balanced risk investments, carry additional risk, some of it tied to cyclical price trends, inflation or deflation, and global supply and demand forces.

Expenses TDF returns are reduced by the expenses of the underlying investment portfolios. The expenses include investment management fees and administrative expenses. The aggregate annual investment management fees for each TDF can range from approximately .15% to .82% of TDF assets, and over time the aggregate annual administrative expenses for each TDF can range from approximately .03% to .08% of TDF assets, but are expected to average approximately .05%. Hence, total annual expenses can range from approximately .18% to .90% of TDF assets over time.

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Investment Managers Lockheed Martin Investment Management Company (LMIMCo) appoints the portfolio managers and the Glide Path provider and manager. The Glide Path provider and manager for the TDFs is AllianceBernstein. LMIMCo may replace one or more of these managers at any time without notice to participants. For a current list of managers, access the Investments section of the Savings Plan Web Tool, or call the Savings Plan Information Line.

Investment Structure The TDFs were created for the Lockheed Martin savings plans using a mix of separate accounts, commingled trust funds and mutual funds.

Historical Performance To obtain historical performance information for the TDFs or any other investment option in the Plan, you may access the Savings Plan Web Tool or call the Savings Plan Information Line.

Fair Value Pricing The investment managers of the portfolios underlying the TDFs, in determining the net asset value (NAV) of their respective portfolios, may use fair value pricing. A manager may use fair value pricing when reliable market quotations are not readily available or if the value of a security has been materially affected by events occurring before the pricing time but after the close of the primary markets or exchanges on which the security is traded, as may happen with foreign securities. When fair value pricing is employed, the prices of securities used by a manager to calculate its portfolio’s NAV may differ from quoted or published prices for the same securities.

Additional Information or AssistanceIf you have any questions about this document or want to obtain a copy of the SPD, including the Investment Options Guide, or the Participant Disclosure Notice:

• Access the Savings Plan Web Tool via LM People at https://lmpeople.lmco.com via the Intranet (https://www.lmpeople.com via the Internet) > Pay and Benefits > Savings Plan > Plan Information. Or, go directly to https://lmco.voya.com.

• Call the Savings Plan Information Line: - Toll-free within the U.S.: 800-444-4015 - From outside the U.S.: 904-791-2020 - For TDD communication services for the hearing impaired: 800-579-5708

Customer service representatives are available Monday through Friday 8 a.m. to 8 p.m. Eastern time, except on New York Stock Exchange holidays.




118cNOTs17

July 31, 2017

Participant Disclosure NoticeImportant Plan and Investment-Related Information forLockheed Martin Corporation Savings Plan Participants

This document provides participants in the Lockheed Martin Corporation Savings Plans importantdisclosures related to investment options in the plans, including fee and expense information. It isprovided to increase awareness of your rights and responsibilities with respect to the investment of yourassets in the savings plans.

Two general categories of information are provided in this notice:

1) plan-related information for each savings plan in which you are a participant; and

2) investment-related information which applies to all savings plans as well as some summarizedinformation about the plans.

Additional information, including descriptions of certain terms used in the notice, is available in eachplan’s Summary Plan Description (SPD) and the Investment Options Guide. A glossary of investmentterms is also available.

If you have questions regarding the information in this notice, or wish to obtain additional informationabout the plan(s) in which you participate and/or the investment options, you may do any of the following:

• Access the Savings Plan Web Tool:

LM People at https://lmpeople.lmco.com via the Intranet

(https://www.lmpeople.com via the Internet) > Pay and Benefits > Savings

Plan

Or, go directly to https://lmco.voya.com.

• Call the Savings Plan Information Line:

U.S. Toll-free: 800-444-4015

Outside the U.S.: 904-791-2020

TDD communication services for the hearing impaired: 800-579-5708

Representatives are available Monday through Friday 8 a.m. to 8 p.m. Eastern Time,except on New York Stock Exchange holidays.

• Contact the Plan Administrator in writing at:Lockheed Martin CorporationAttn: Savings Plan Operations6801 Rockledge Drive, CCT-115Bethesda, MD 20817

A free paper copy of the information available on the Savings Plan Web Tool can be obtained by callingthe Savings Plan Information Line.



118eNOTs17SSP-720001

Plan-Related Information for Participants in the Lockheed MartinCorporation Salaried Savings Plan (“SSP” or the “Plan”)

Please review the following plan-related Information:

1. An explanation of the circumstances under which participants and beneficiaries may giveinvestment instructions.

The Plan allows participants to choose how to invest all employee contributions to their account otherthan Company Matching Contributions. Company Matching Contributions are automatically investedin the Lockheed Martin Corporation ESOP Fund. You may make unlimited transfers from the ESOPFund into any investment option. However, reallocations that affect the ESOP Fund count toward theannual transfer limit. Please refer to section 2 below.

You may change your investment elections for Before-Tax Contributions, Roth Contributions, andAfter-Tax Contributions, or any combination of these types, at any time, in one of two ways:

• Combined Decision - You can make a single set of investment elections for all contributions(other than Company Matching Contributions).

• Separate Choices – You can also make different investment decisions – separately – foreach type of contribution (other than Company Matching Contributions).

Once you are enrolled in the Plan, you may direct your investments by accessing the Savings PlanWeb Tool or by calling the Savings Plan Information Line.

2. An explanation of any specified limitations on your investment instructions under the terms ofthe Plan, including any restrictions on transfers to or from a designated investmentalternative.

• You may change the investment mix of your current savings plan account balance by either afund transfer or a reallocation up to 12 times during a calendar year. . In addition, you willhave at least one transfer opportunity each calendar quarter no matter how many investmenttransfers you’ve already made during the year. For example, even if you made 12 transfersby September 30, you would still be able to make one more transfer in the fourth quarter.

You will also have one opportunity to transfer all or part of your account balance to the StableValue Fund during the fourth quarter of the year - even if you’ve made 13 transfers asdescribed above.

• Fund transfers to or from a designated investment alternative can be made in 5% incrementsor whole dollar increments.

• Reallocations of your total account balance, or some portion thereof, must be made in 5%increments, and can be reallocated to all investment options except the Self-DirectedBrokerage Account (“SDBA”).

• After transferring out of a fund, you may not transfer back into the fund for 30 days, with oneexception:

o If your first contribution is posted to the default Target Date Fund assigned atenrollment, the 30-day restriction will be waived for that fund for the first 120 daysafter the first contribution is posted.

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• Competing Fund Restrictions:

o You cannot transfer directly from the Stable Value Fund into the SDBA, the TreasuryInflation-Protected Securities Fund (“TIPS Fund”) or the Government Short TermInvestment Fund (“GSTIF”).

o Amounts transferred out of the Stable Value Fund must remain invested in one of thePlan’s Core Funds or a Target Date Fund for at least 90 days before beingtransferred into the SDBA, the TIPS Fund, or the GSTIF.

• You may make unlimited transfers from the Company Common Stock Fund and/or ESOPFund into any investment option. Transfers from these funds will not count toward the 12transfer opportunities allowed each year. However, a fund reallocation involving theCompany Common Stock Fund and/or ESOP Fund will count toward your 12 annual transferopportunities.

3. A description of or reference to plan provisions relating to the exercise of voting, tender andsimilar rights associated with an investment in a designated investment alternative as well asany restrictions on such rights.

If you have a balance in the Company Common Stock Fund or ESOP Fund, you are entitled to votingrights on the company common stock held in these funds. You will be provided an annual report,proxy information and other materials that are provided to all shareholders of Lockheed Martin (the“Company”). You also will receive information on how you may exercise your voting rights of yourCompany common stock. Voting instructions must be made directly to State Street Bank and TrustCompany, the Plan Trustee. How you vote your shares will not be disclosed to Companymanagement.

If the Trustee does not receive timely voting instructions from you, the Trustee will vote your shares inproportion to those shares in the fund for which timely instructions are received from Planparticipants. However, if the Trustee determines that voting in this fashion is not in the best interest ofPlan participants, the Trustee will make an independent determination as to how to vote such shares.

You may contact State Street Bank and Trust Company (by mail at P.O. Box 55772, Boston, MA02205-5772, or by telephone at 800-444-4015) for details of the voting process.

Tender or Exchange OfferIf you have a balance in the Company Common Stock Fund or ESOP Fund, you may be offered theopportunity to tender your unit shares in these funds or to exchange such shares for shares inanother company. If such a tender or exchange offer occurs, you will receive offer materials from theTrustee or other designated information agent. The materials will describe the offer and will outlinethe process and the deadlines that you must follow should you wish to tender or to exchange yourunit shares in the Company common Stock Fund or ESOP Fund. If you do not tender or exchangeyour unit shares within applicable deadlines, none of your unit shares will be tendered or exchanged.Your decision on whether to participate in the offer will be kept confidential by the Trustee and will notbe disclosed to Company management.

New shares received in exchange for unit shares in the Company Common Stock Fund or ESOPFund will be held in a new unitized stock fund within the Plan. Cash received in exchange for unitshares in the Company Common Stock Fund or ESOP Fund will be reinvested in accordance with theterms of the Plan. The appropriate investment fiduciary may place conditions on the new stock fund,including, but not limited to, mandatory liquidation requirements and restrictions on fund reallocations.

If you hold shares of Company common stock through the Plans’ SDBA, you will receive informationon any tender or exchange offer by accessing ameritraderetirement.com > My Account > History &Statements > Shareholder Library > Corporate Actions.

You may request information on any offer by calling the Savings Plan Information Line.

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4. An identification of any designated investment alternatives offered under the Plan.

Core FundsGovernment Short Term Investment Fund (GSTIF)Stable Value FundTreasury Inflation-Protected Securities (TIPS) FundBroad Market Bond Index FundHigh Yield Bond FundS&P 500® Indexed Equity FundU.S. Equity FundSmall/Mid-Cap Indexed Equity FundGlobal Equity FundMSCI EAFE® Indexed Equity FundGlobal Real Estate FundEmerging Markets Indexed Equity FundInternational Developed Markets Equity FundCommodities FundCompany Common Stock Fund (Lockheed Martin Corporation Common Stock)ESOP Fund (Lockheed Martin Corporation Common Stock)Leidos Common Stock Fund (Leidos Common Stock)

Target Date FundsTarget Date Fund 2005Target Date Fund 2010Target Date Fund 2015Target Date Fund 2020Target Date Fund 2025Target Date Fund 2030Target Date Fund 2035Target Date Fund 2040Target Date Fund 2045Target Date Fund 2050Target Date Fund 2055Target Date Fund 2060

5. An identification of any designated investment managers.

Lockheed Martin Investment Management Company (LMIMCo), a wholly-owned subsidiary ofLockheed Martin Corporation, provides investment direction to the Plan’s Trustee with respect to Planassets.

Voya Retirement Advisors, L.L.C. (VRA), a registered investment advisor, with sub-advisory servicesprovided by Financial Engines Advisors L.L.C., provides investment management advice for thoseparticipants who choose to utilize the VRA Professional Management Advisory Service.

6. A description of any “brokerage windows” or self-directed brokerage accounts that enableparticipants to select investments beyond those designated investment alternatives.

General DescriptionIn addition to the Plan’s designated investment alternatives, you have the option to invest in thePlan’s “SDBA”. The SDBA is a brokerage option offered in the Plan that affords more flexibility inchoosing retirement savings investments by allowing you to invest in exchange-traded stocks, bondsand mutual funds. Brokerage services for the Plan’s SDBA are provided by TD Ameritrade, Inc. (TDAmeritrade).

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A separate Roth SDBA can be used to invest any amounts associated with Roth contributions, Rothrollovers or in-plan Roth conversions.

Eligibility and LimitationsAll participants are eligible to open a non-Roth and/or Roth SDBA. To do so you must have acombined balance of at least $4,000 in your Core Funds and Target Date Funds and make an initialtransfer of at least $3,000 to the SDBA. Subsequent transfers to the SDBA must be at least $1,000.You may only transfer non-Roth amounts to your non-Roth SDBA and Roth amounts to your RothSDBA.

If the combined balance in your non-Roth and Roth SDBAs exceeds 75% of your total Plan accountbalance, you may not transfer any additional amounts to either SDBA.

Opening Your AccountTo open an SDBA, call the Savings Plan Information Line or access the Savings Plan Web Tool andrequest an SDBA application. Return the completed application by fax or mail to TD Ameritrade at theaddress provided on the application. Once the application is received and approved, TD Ameritradewill open your account(s) and send you information that includes a welcome letter, your SDBAnumber(s) and a description of TD Ameritrade resources that you can use to place trades and obtaininformation about your account(s). Additionally, you will receive a Personal Identification Number(“PIN”) for each account under separate cover. After using your account number and PIN to activateyour account, you will be asked to create a User ID and password which you will use to access youraccount in the future. You’ll then be able to transfer money into your SDBA(s).

Transfer RestrictionsTo invest in your SDBA(s), you must transfer money from your Core Funds or Target Date Funds intoyour SDBA. Transfers may be initiated by accessing the Savings Plan Web Tool or by calling theSavings Plan Information Line. You are not permitted to transfer directly from the Stable Value Fundinto an SDBA. Amounts transferred out of the Stable Value Fund must remain invested in the CoreFunds or Target Date Funds for at least 90 days before they can be transferred into the TIPS Fund,the GSTIF or an SDBA. Roth 401(k) contributions, Roth rollovers and in-plan Roth conversions inyour Plan account may only be transferred to a Roth SDBA. Only Savings Plan assets can betransferred into your SDBA(s).

Accessing Your SDBA and Placing Trade OrdersAfter you have opened and transferred money to your SDBA(s), you can access your account andplace trade orders by:

• logging on to the TD Ameritrade trading website. Shortly after establishing your SDBA(s), youwill receive a separate communication containing the website address and details about thesite as well as an account number and PIN to be used exclusively for online trading in yourSDBA(s).

• calling the TD Ameritrade Interactive Voice Response (IVR) phone system at 866-766-4015,24 hours a day, 7 days a week. The system will lead you through the quote and orderprocess and prompt you to enter information using your telephone keypad and voicecommands. Your account number and PIN allows you to complete automated trades. If youcannot provide your PIN, a representative will ask designated security questions to confirmyour identity.

• calling TD Ameritrade licensed brokers at 866-766-4015 between the hours of 8:00 a.m. and7:00 p.m., Monday through Friday, Eastern time, excluding New York Stock Exchangeholidays. An experienced licensed broker will assist you with trades, quotes and market data.

SDBA Fee and Expense InformationInvestments in the SDBA(s) are subject to administrative expenses, which may range fromapproximately .03% to .08% of fund assets, but are expected to average approximately .05%. Theseexpenses are determined daily based upon the market value of your SDBA and are charged

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proportionally each month to your Core Fund and Target Date Fund balances as a reduction inapplicable units owned. In addition, your participation in the SDBA will be subject to thecommissions, transaction and service fees as indicated in the following schedule:

Commissions and Transaction Fees

Stocks and ETFs1 Price

• Internet orders $8.95

• Interactive Voice Response (IVR) phone system orders $14.99

• Broker-assisted orders $24.99

• Commission-Free ETFs2 No Commission

1 Orders executed in multiple lots on the same trading day will be charged a single commission. When anorder is partially executed over multiple trading days, the order is subject to a separate commissioncharge for each trading day.

2 ETFs eligible for commission-free trading must be held at least 30 days. If you sell an eligible ETF within30 days of it being purchased commission-free, a short-term trading fee will apply.

Mutual Funds Price

• No Load $25.00

• Load No Fee3

• No-Transaction-Fee (NTF) No Fee4

3 The Fund Family will charge fees as detailed in the fund prospectus.

4 No-Transaction-Fee (NTF) mutual funds are no-load mutual funds for which TD Ameritrade does notcharge a transaction fee. NTFs, as well as other funds, have other continuing fees and expensesdescribed in the fund’s prospectus. TD Ameritrade receives remuneration from fund companies forrecord-keeping, shareholder and other administrative services. The amount of remuneration is based inpart on the amount of investments in such funds by TD Ameritrade clients. Almost all funds held 90 daysor less will be subject to a short-term redemption fee of $49.99. This fee is in addition to any applicabletransaction fees or fees described in the fund's prospectus

Fixed Income Investments5

• All buy orders for bonds are subject to a five bond ($5,000 par value) minimum.

• Online CD buy orders are subject to a two CD ($2,000 par value) minimum.

5 TD Ameritrade may act as principal on any fixed income transaction. When acting as principal, TDAmeritrade will add a markup to any purchase and subtract a markdown from every sale. This markup ormarkdown will be included in the price quoted to you.

Service Fees6

Reorganization Fees

Deposit7 $25

Mandatory8 $20

Non-mandatory and tender offers9 $30

Withdrawal from tender offer10 $10

Duplicate Statements and Confirmations$5 per paper copy (no charge forelectronic documents)

Research Fee11 $60 per hour

6 All service fees are subject to change. TD Ameritrade reserves the right to pass through RegulatoryFees, foreign transaction taxes, and other fees to client accounts, which may be assessed under various

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U.S. regulations or imposed by foreign governments. Fees may include any of the following: a sales feeon certain sell transactions (assessed at a rate consistent with Section 31 of the Securities andExchange Act of 1934) and foreign transaction taxes and fees, among other charges.

7 Applies when a security has gone through a mandatory reorganization before the certificate is depositedinto an account.

8 Applies when a security has gone through a mandatory reorganization for all shares held in an account,including those pending trade settlement, on the effective date of the reorganization.

9Applies when a participant chooses to participate in a non-mandatory reorganization offer.

10Applies when a participant chooses to withdraw from a non-mandatory reorganization offer.

11Research is conducted subsequent to specific and usually disputed account activities.

A portion of the revenue generated from the SDBA option may, through revenue sharing payments,be used to reduce administrative expenses proportionally among all Savings Plans.

Additional Information on the SDBAThe Self-Directed Brokerage Account Fact Sheet provides additional information on this brokerageoption. You may obtain the Fact Sheet by accessing the Savings Plan Web Tool or by calling theSavings Plan Information Line.

7. An explanation of any fees for general plan administrative services (e.g., legal, accounting,recordkeeping) which may be charged against individual accounts.

Certain fees may be deducted from your savings plan account balance. Such fees are for servicesrequired to administer the Plan (e.g., audit, communications, and legal services) and will be allocatedamong individual accounts in proportion to each account balance. You may review general planadministrative fees deducted from your account on your Plan statement. See “Participant FeeDisclosure on Statements” below for details.

8. An explanation of any fees and expenses that may be charged against the individual accountof a participant/beneficiary on an individual rather than on a plan-wide basis.

If you elect certain transactions, (e.g. a plan loan, overnight mail, or in-plan Roth conversion), orservice program elections (e.g., Voya Retirement Advisors (“VRA”) Service/ProfessionalManagement), applicable fees will be deducted from your account. If you choose to invest in thePlan’s SDBA (Roth and/or non-Roth), administrative expenses, as described in section 6 above, willbe deducted from your SDBA account(s). Individual fees deducted from your account are reflected onyour savings plan account statement, as described below under “Participant Fee Disclosure onStatements”.

Participant Fee Disclosure on Statements

General plan administrative fees and individual fees deducted from your savings plan account may beviewed on your account statement. The section of the statement titled “Your Fee Detail” displays thedollar amount for certain administrative services and individual expenses actually charged to yoursavings plan account. The fees that may be displayed in the “Your Fee Detail” section of yourstatement include:

• Administrative Fees – fees that are plan specific, such as printing and postage costs forsavings plan communications

• Loan Request Fee – loan application fee• Overnight Mail Fee – for documents you have requested be sent overnight• Self-Directed Brokerage Fee – for participants who have selected the Roth and/or non-Roth

Self-Directed Brokerage Accounts as investment options• Managed Account Fee – for participants who have elected Professional Management i.e.,

the managed account option of the VRA Advisor Service

7

• In-Plan Roth Conversion Fee – for participants who have elected to make an in-plan Rothconversion from certain non-Roth account balances to a new Roth conversion source in theiraccount

Most expenses, including fees for recordkeeping, trustee services, investment oversight, and otheradministrative costs are not deducted from your savings plan account but are charged via the totalannual operating expenses of the plan’s investment options, as described in the investment-relatedinformation included in this notice. These fees are not included in the Administrative Fees displayedon your statement, rather they are reflected as a reduction to overall fund returns.

You may review your account balance and generate a statement at any time throughout the year byaccessing the Savings Plan Web Tool.

118dNOTs17

Investment-Related Information for Participants in the Lockheed MartinCorporation Savings Plans

The investment-related information provided within this document applies to the following Lockheed MartinCorporation (LMC) Savings Plans:

• LMC Salaried Savings Plan (SSP)• LMC Hourly Employee Savings Plan Plus (HSP)• LMC Basic Benefit Plan for Hourly Employees (BBP)• LMC Operations Support Savings Plan (OSSP)• LMC Performance Sharing Plan for Bargaining Employees (PSP)• LMC Capital Accumulation Plan (CAP)• LMC Capital Accumulation Plan for Hourly Employees (HCAP)

This document has two parts. Part I consists of performance information for the savings plans’ investmentoptions. Part II shows the fees and expenses incurred in 2016 for each investment option.

Part I. Performance Information

Table 1 shows the performance of investment options that do not have a fixed or stated rate of return, whichallows you to compare how the plans’ investment options and their benchmarks have performed over time.Past performance does not guarantee future performance. Your investment(s) in these options may losemoney. Information about an investment option’s risks is available on the Savings Plan Web Tool.

Table 1 shows performance information as of 12/31/2016. Current performance may be higher or lower thanthe performance shown. To obtain the most recent month-end performance, visit the Savings Plan Web Tool.

Additional information about the Plan’s investment options, including a glossary of investment terms, isavailable on the Savings Plan Web Tool.

Table 1 - Variable Return Investments

Summary of Investment Performance 1 as of 12/31/2016

Average Annual Rate of Return 2

Name / Type of Option1 year 5 years 10 years

SinceInceptionBenchmark/Index 3

Equity Funds

S&P 500® Indexed Equity Fund / Large Blend 11.94% 14.62% 6.93% 9.15%

S&P 500® Index 11.96% 14.66% 6.95% 9.19%

U.S. Equity Fund / Large Blend 9.71% N/A N/A 7.59%

Russell® 3000 Index 12.74% N/A N/A 9.11%

Small / Mid Cap Indexed Equity Fund / Small Mid-Cap Blend 16.52% 14.55% 7.79% 8.99%

Russell® Small Cap Completeness Index 16.59% 14.61% 7.80% 8.86%

Global Equity Fund / Large Blend 3.64% N/A N/A 4.57%

MSCI ACWI IMI Net 8.36% N/A N/A 3.74%

Int’l Developed Markets Equity Fund / Large Blend 3.21% N/A N/A -0.34%

2

MSCI World ex – USA IMI Net 2.95% N/A N/A -0.45%

MSCI EAFE® Indexed Equity Fund / Foreign Large Blend 1.86% 6.75% 0.91% 5.01%

MSCI EAFE® Index 1.00% 6.53% 0.75% 4.88%

Global Real Estate Fund / Global Real Estate 2.23% 8.86% N/A 6.88%

FTSE EPRA/NAREIT Dev Net TRI USD 4.06% 9.48% N/A 7.85%

Emerging Markets Indexed Equity Fund / Foreign Large Blend 10.91% 1.08% N/A -0.17%

MSCI Emerging Markets Index® 11.19% 1.28% N/A 0.12%

Commodities Fund / Commodities Broad Basket 11.35% -9.53% N/A -6.40%

DJ-UBS Commodity Index TR 11.77% -8.95% N/A -6.17%

Company Common Stock Fund 4 / Non-Diversified Domestic Equity 18.20% 29.62% 13.93% 13.01%

Lockheed Martin Corporation Common Stock 18.37% 29.86% 14.10% 13.54%

ESOP Fund–Salaried (SSP only) 4 / Non-Diversified Domestic Equity 18.21% 29.66% 13.94% 11.26%


ESOP Fund–Hourly (HSP and BBP only) 4 / Non-Diversified Domestic Equity 18.21% 29.56% 13.92% 15.13%


Bond Funds

Broad Market Bond Index Fund / Fixed Income 2.50% 2.14% 4.24% 4.65%

Barclays U.S. Aggregate Bond Index 2.65% 2.23% 4.34% 4.70%

High Yield Bond Fund / Fixed Income 13.24% N/A N/A 3.71%

BofAML HYM Master II Constrained Index 17.49% N/A N/A 4.79%

Other

Government Short Term Investment Fund / Short Term Fixed Income 0.30% 0.08% N/A 0.07%

Bank of America Merrill Lynch 3mth US T-Bill Index 0.33% 0.12% N/A 0.12%

Stable Value Fund / Stable Value 1.66% 1.34% 2.13% 3.33%

iMoneyNet MF Avg/All Taxable Index 0.13% 0.04% 0.71% 2.29%

Treasury Inflation-Protected Securities (TIPS) Fund / Inflation-Protected FixedIncome

5.05% 0.88% N/A 3.16%

Barclays U.S. Inflation-Linked Bond Index 5.10% 0.98% N/A 3.28%

Target Date Fund 2005 / Target Date Fund 5.26% 4.55% N/A 3.06%

Target Date 2005 Blended Index 5 4.77% 4.27% N/A 2.75%




3

Notes

1. Returns included for the funds are net of certain management and administrative expenses and do not necessarily reflect any increases or decreasesof an individual participant’s account. The growth of each participant’s account may vary due to participant transactions such as contributions, fundtransfers, withdrawals, etc.

2. The returns are rolling, annualized rates of return.

3. Comparative benchmark indices are included for reference only and do not impact participant balances. The benchmark indices do not include anyexpenses.

4. Returns for the Company Common Stock Fund and the ESOP Fund include the effects of dividends and changes in prices.

5. The benchmark for the Target Date Funds is a customized benchmark that uses index returns to represent performance of the asset classes.The benchmark returns are calculated by weighting the monthly index returns of each asset class by each Target Date Fund's target allocationfor each asset class. Target allocations adjust quarterly in accordance with the Target Date Funds' Glide Path. For 2016, the benchmarks inthe table below were used to calculate the Target Date Funds’ blended benchmark:


















Target Date Fund 2060 / Target Date Fund 8.50% N/A N/A 3.08%

Target Date 2060 Blended Index 5 8.07% N/A N/A 2.79%

4

Asset Class: Benchmark Allocation Target Date Funds

2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060

U.S. Large Cap Stocks:

Russell® 1000 Index 11.94% 13.72% 15.54% 17.92% 20.32% 23.00% 25.70% 26.76% 26.80% 26.80% 26.80% 26.80%

U.S. Small/Mid-Cap Stocks:

Russell® 2000 Index 1.50% 2.00% 2.62% 3.50% 4.56% 5.90% 7.34% 8.56% 9.00% 9.00% 9.00% 9.00%

Non-U.S. Stocks:

MSCI EAFE® Index 7.64% 8.92% 10.30% 12.70% 15.82% 19.68% 24.10% 27.52% 28.60% 28.60% 28.60% 28.60%

Emerging Markets Stocks:

MSCI Emerging Markets Index® 1.32% 1.52% 1.78% 2.38% 3.18% 4.22% 5.54% 6.76% 7.20% 7.20% 7.20% 7.20%

Stable Value Fund:

iMoneyNet MF Avg/All Taxable 19.80% 17.80% 15.80% 12.60% 8.90% 5.40% 1.60% 0.00% 0.00% 0.00% 0.00% 0.00%

U.S. Core Bonds:

Bloomberg Barclays U.S. Aggregate BondIndex

25.40% 18.80% 14.80% 13.40% 11.80% 9.20% 6.80% 5.40% 5.00% 5.00% 5.00% 5.00%

Inflation-Protected Bonds:

Bloomberg Barclays U.S. GovernmentInflation- Linked Bond Index

20.00% 20.00% 17.00% 12.30% 8.70% 4.80% 1.20% 0.00% 0.00% 0.00% 0.00% 0.00%

Emerging Markets Bonds:

JPMorgan EMBI Global Diversified Index 0.00% 0.60% 1.60% 2.60% 3.00% 3.00% 3.00% 1.20% 0.00% 0.00% 0.00% 0.00%

High Yield Bonds:

BofA Merrill Lynch U.S. High Yield IIConstrained Index

1.20% 2.60% 3.60% 4.00% 4.00% 4.00% 2.80% 0.80% 0.00% 0.00% 0.00% 0.00%

Commodities:

Bloomberg Commodity Index Total Return 2.50% 2.92% 3.68% 4.00% 4.06% 4.10% 4.16% 4.20% 4.20% 4.20% 4.20% 4.20%

Direct Global Real Estate/REIT Securities:

FTSE EPRA/NAREIT Developed RealEstate Index

2.50% 2.92% 3.68% 4.00% 4.06% 4.10% 4.16% 4.20% 4.20% 4.20% 4.20% 4.20%

Balanced Risk Allocation:

U.S. CPI (Consumer Price Index) + 3% 6.20% 8.20% 9.60% 10.60% 11.60% 12.60% 13.60% 14.60% 15.00% 15.00% 15.00% 15.00%

S&P 500® is a registered trademark of The McGraw-Hill Companies, Inc.

Russell® is a registered trademark of Russell Investments.

MSCI EAFE® is a registered trademark of MSCI, Inc.

MSCI Emerging Markets Index® is a registered trademark of MSCI, Inc.

5

Part II. Fee and Expense Information

Table 2 shows fee and expense information for the Plan investment options for 2016. Included in Table 2 are:

• Total Annual Operating Expenses - expenses paid indirectly from your investment in each option,expressed as a percentage of the value of an investment in such option and a dollar amount per $1000 ofinvestment. The Total Annual Operating Expenses below include fees for investment management,recordkeeping, trustee services, investment oversight, fund operations and target date fund services(where applicable), and certain other minor expenses, and are allocated among individual accounts inproportion to each account balance.

• Shareholder-type Fees – a description of any fees paid directly from your investment in each option (e.g.sales loads, redemption fees, surrender charges) and any transfer restrictions. These fees are in additionto Total Annual Operating Expenses.

Table 2 - Fees and Expenses

Name / Type of OptionTotal Annual

Operating ExpensesShareholder-Type Fees /Investment Restrictions

As a % Per $1000

Equity Funds

S&P 500® Indexed Equity Fund / Large Blend 0.04% $0.38 N/A

U.S. Equity Fund / Large Blend 0.44% $4.42 N/A

Small / Mid Cap Indexed Equity Fund / Small Mid-Cap Blend 0.06% $0.57 N/A

Global Equity Fund / Large Blend 0.47% $4.65 N/A

Int’l Developed Markets Equity Fund / Large Blend 0.11% $1.05 N/A

MSCI EAFE® Indexed Equity Fund / Foreign Large Blend 0.10% $0.97 N/A

Global Real Estate Fund / Global Real Estate 0.79% $7.92 N/A

Emerging Markets Indexed Equity Fund / Foreign Large Blend 0.15% $1.49 N/A

Commodities Fund / Commodities Broad Basket 0.06% $0.58 N/A

Company Common Stock Fund / Non-Diversified Domestic Equity 0.05% $0.53 N/A

ESOP Fund (SSP only) / Non-Diversified Domestic Equity 0.05% $0.54 N/A

ESOP Fund (HSP and BBP only) / Non-Diversified Domestic Equity 0.04% $0.43 N/A

Leidos Fund 0.00% $0.03 N/A

Bond Funds

Broad Market Bond Index Fund / Fixed Income 0.06% $0.58 N/A

High Yield Bond Fund / Fixed Income 0.53% $5.28 N/A

Other

Government Short Term Investment Fund /Short Term Fixed Income 0.06% $0.59

Amounts transferred out of the SDBA, TIPSFund or the Government Short TermInvestment Fund cannot be directly transferredinto the Stable Value Fund; instead they mustbe transferred to the Plan’s Core InvestmentOptions and/or Target Date Funds for at least90 days before being transferred to the StableValue Fund.

Stable Value Fund / Stable Value 0.29% $2.91

Amounts transferred out of the Stable ValueFund cannot be directly transferred to theSDBA, TIPS Fund, or Government Short TermInvestment Fund; instead they must betransferred to the Plan’s Core InvestmentOptions and/or Target Date Funds for at least90 days before being transferred to the SDBA,TIPS Fund, or Government Short TermInvestment Fund.

6

Table 2 - Fees and Expenses (continued)

Name / Type of OptionTotal Annual

Operating ExpensesShareholder-Type Fees /Investment Restrictions

As a % Per $1000

Other (continued)

Treasury Inflation-Protected Securities (TIPS) Fund /Inflation-Protected Fixed Income 0.06% $0.58

Amounts transferred out of the SDBA, TIPSFund or the Government Short TermInvestment Fund cannot be directly transferredinto the Stable Value Fund; instead they mustbe transferred to the Plan’s Core InvestmentOptions and/or Target Date Funds for at least90 days before being transferred to the StableValue Fund.

Target Date Fund 2005 / Target Date Fund 0.28% $2.83 N/A











Target Date Fund 2060 / Target Date Fund 0.42% $4.20

Self-Directed Brokerage Account (SDBA) 0.03% $0.33

Expenses are determined daily based upon themarket value of the SMA and will be chargedmonthly to the Core Fund and Target DateFund balances as a reduction in applicableunits owned.Amounts transferred out of the SDBA, TIPSFund or the Government Short TermInvestment Fund cannot be directly transferredinto the Stable Value Fund; instead they mustbe transferred to the Plan’s Core InvestmentOptions and/or Target Date Funds for at least90 days before being transferred to the StableValue Fund.

The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings. Visitthe U.S. Department of Labor’s Web site for an example showing the long-term effect of fees and expenses athttp://www.dol.gov/ebsa/publications/401k_employee.html. There are many factors in addition to fees andexpenses that you should consider when you decide to invest in a savings plan option. For example, you may alsowant to consider whether an investment in a particular option, along with your other investments, will help youachieve your financial and retirement goals. Additionally, each investment option offered has various risks, suchas interest rate risk and market and credit risk. You may also want to consider your number of years beforeretirement and your own level of investment knowledge. There is no guarantee that a particular fund’s objectivewill be met.

110SMMS17

July 10, 2017

Summary of Material Modifications

Notice of Changes in Investment Options’ Fees and Expenses

This document provides information on changes in the following Lockheed Martin Corporation (LMC) savings plans:

LMC Salaried Savings Plan (SSP)

LMC Hourly Employee Savings Plan Plus (HSP)

LMC Basic Benefit Plan for Hourly Employees (BBP)

LMC Operations Support Savings Plan (OSSP)

LMC Performance Sharing Plan for Bargaining Employees (PSP)

LMC Capital Accumulation Plan (CAP)

LMC Capital Accumulation Plan for Hourly Employees (HCAP)

This document is called a Summary of Material Modifications (SMM) to the official plan summary, known as the Summary Plan Description (SPD), which includes the Investment Options Guide. Overview of Changes Included in this document is information about changes to the Fees and Expenses for the Self-Directed Brokerage Account (SDBA). SDBA Fees and Expenses Effective April 3, 2017, TD Ameritrade, the SDBA provider, lowered the cost of SDBA equity and ETF internet orders to $4.95. (Effective March 6, 2017, TD Ameritrade had universally lowered the cost of equity and ETF internet orders from $8.95 to $6.95.) Also effective April 3, 2017, TD Ameritrade lowered the cost of SDBA no-load mutual funds from $25.00 to $9.95 (vs. $19.95 universally). In conjunction with these cost decreases, TD Ameritrade’s revenue sharing payments will be correspondingly reduced. Effective April 1, 2017, this revenue is credited to SDBA participants pro-rata based on each participant’s SDBA balance. Previously the revenue was used to reduce the plans’ administrative expenses. Effective June 1, 2017, the SDBA will no longer allow investments in Master Limited Partnerships (MLPs) and certain other pass-through investments. These investments can generate income and required tax filings that may result in adverse tax consequences for the Lockheed Martin savings plans. Participants with existing holdings in these investments will not be required to sell their existing holdings as a result of this change.

(continued)

2

Additional information or assistance Please review this information and file with your important savings plan documents. If you have any questions about this document, or to obtain a copy of the current SPD or Investment Options Guide:

Access the Savings Plan Web Tool o https://lmpeople.lmco.com > Pay and Benefits > Savings Plan via the Intranet o https://www.lmpeople.com > Pay and Benefits > Savings Plan via the Internet

o https://lmco.voya.com

Call the Savings Plan Information Line and speak to a customer service representative Monday through Friday, 8 a.m. to 8 p.m. Eastern time, except on New York Stock Exchange holidays

o 800-444-4015 toll free from within the U.S. o 904-791-2020 from outside the U.S. o 800-579-5708 for TDD communication services the hearing impaired



111SMMS17

July 10, 2017


Notice of Change in Contribution Limits This document provides information regarding changes to the Lockheed Martin Corporation Salaried Savings Plan (SSP). This document is called a Summary of Material Modifications (SMM) to the official plan summary, known as the Summary Plan Description (SPD).

Description of Change

Effective Oct. 14, 2016, the contribution percentage limits have increased as follows (but are subject to applicable Internal Revenue Code limitations, which will continue to apply): Plan Name Old Limits New Limits Salaried Savings Plan 25% total 40% total You may contribute up to 40% on a before-tax, Roth 401(k) or after-tax basis, or any combination of the three up to a total of 40% of your Base Pay. However, the 2017 IRS 402(g) limit of $18,000 ($24,000 if age 50 or older) will continue to apply.

Additional information or assistance

Please review this information and file with your important savings plan documents. If you have any questions about this document, or to obtain a copy of the current SPD and/or Investment Options Guide:

Access the Savings Plan Web Tool o https://lmpeople.lmco.com > Pay and Benefits > Savings Plan via the Intranet o https://www.lmpeople.com > Pay and Benefits > Savings Plan via the Internet o https://lmco.voya.com





115SMMS17

July 10, 2017


Notice of Change to In-Plan Roth Conversion Fee This document provides information on changes in the following Lockheed Martin Corporation (LMC) savings plans:


LMC Hourly Employee Savings Plan Plus (HSP)


LMC Performance Sharing Plan for Bargaining Employees (PSP) This document is called a Summary of Material Modifications (SMM) to the official plan summary, known as the Summary Plan Description (SPD). In Plan Roth Conversion Fee Reduction The fee charged to participant plan accounts for each in-plan Roth conversion was reduced from $200 to $100 effective December 1, 2016. Please remember that the decision to make an in-plan Roth conversion is extremely complex, and an in-plan Roth conversion and any tax owed on the conversion are irrevocable. It is strongly recommended that you consult your financial and/or tax advisor if you are considering an in-plan Roth conversion. Please refer to your SPD for more important information regarding in-plan Roth conversions. Additional information or assistance Please review this information and file with your important savings plan documents. If you have any questions about this document, or to obtain a copy of the current SPD and/or Investment Options Guide:






116NotS17

July 10, 2017

Saving Plan Statements Delivered Electronically By Default Although electronic delivery (e-delivery) of savings plan account statements has been an option for several years, the default for most Lockheed Martin Corporation (LMC) savings plan participants has been postal delivery of quarterly and/or annual participant account statements. Postal delivery of savings plan account statements requires the printing and mailing of over a million sheets of paper each year in order to deliver statements that, by the time they are received, no longer reflect the participants’ current account balances. Therefore, effective immediately, quarterly statements for all Lockheed Martin Corporation qualified and non-qualified savings plans will be provided via e-delivery and will be available on the Savings Plan Web Tool. With e-delivery, you can:

View quarterly statements whenever you need them, 24/7.

Reduce the clutter of paper statements and feel secure that they haven’t been lost in the mail.

Stop worrying about storing or losing past statements. All of your current and historical statements for the past 24 months are available online.

Receive an email notification when a new statement or other correspondence is available.

Online access to your quarterly account statements Your quarterly account statement is available anytime through the Savings Plan Web Tool. Simply log-in, (see below) and visit the Statements and Documents section (on the main menu bar) to view your most recent statement as well as previous statements and accompanying notices for the past 24 months. Right to request a paper account statement You have the right to request to have an account statement printed and mailed to you at no charge. This can be done by calling the Savings Plan Information Line and speaking to a customer service representative. Create an account statement - anytime You can also create a statement using the Savings Plan Web Tool for any available period you choose. Access the savings plan you want a statement for and then select View Statements from the Quick Access menu. Alternatively, you can select Account then Statement from the main menu bar. To opt-out of e-delivery If you prefer to receive quarterly paper statements mailed to you, you can do so by updating your delivery method on the Savings Plan Web Tool under My Profile > Communication Preferences at any time or by calling the Savings Plan Information Line.

(continued)

116NotS17

For more assistance

If you have any questions regarding this document:



o 800-444-4015 toll free from within the U.S. o 904-791-2020 from outside the U.S. o 800-579-5708 for TDD communication

104kSMMs16

August 3, 2016


Notice of Changes to the Treasury Inflation Protected Securities Fund and

the Treasury Inflation-Protected Securities Asset Class in the Target Date

Funds

This document provides information on changes to the Treasury Inflation-Protected Securities Fund

and the Treasury Inflation-Protected Securities asset class in the Target Date Funds offered in the

following Lockheed Martin Corporation (LMC) savings plans:

LMC Salaried Savings Plan

LMC Hourly Employee Savings Plan Plus

LMC Basic Benefit Plan for Hourly Employees

LMC Operations Support Savings Plan

LMC Performance Sharing Plan for Bargaining Employees

LMC Supplemental Savings Plan

LMC Capital Accumulation Plan

LMC Capital Accumulation Plan for Hourly Employees

LMC Deferred Management Incentive Compensation Plan

LMC Nonqualified Capital Accumulation Plan

This document is called a Summary of Material Modifications (SMM) to the official plan summary, known as the Summary Plan Description (SPD), which includes the Investment Options Guide.

About this notice

The purpose of this SMM is to inform you of changes to the TIPS Investments held in the savings

plans. The Lockheed Martin savings plans offer a wide variety of investment options to help their

participants achieve a secure financial future. One of the savings plans’ investment options is the

Treasury Inflation-Protected Securities Fund (the “TIPS Fund”). Additionally, the savings plans offer the

Target Date Funds, which have investments in Treasury Inflation-Protected Securities (together with

the TIPS Fund, the “TIPS Investments”).

Treasury Inflation-Protected Securities Benchmark and Asset Composition

Inflation-protected public obligations of the U.S. Treasury, commonly known as TIPS, are designed to

provide inflation protection to investors. TIPS are income-generating instruments whose interest and

principal payments are adjusted for inflation — a sustained increase in prices that erodes the

purchasing power of money.

Currently, the savings plans’ performance benchmark for the TIPS Investments is the Barclays U.S.

Government Inflation-Linked Bond Index. Effective October 1, 2016, the TIPS benchmark will be the

Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). This benchmark change

will affect the composition of the TIPS Investments held in the savings plans.

The Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L) (the “TIPS Index”)

includes all publicly-issued U.S. TIPS that have at least one year remaining to maturity, are rated

investment-grade (BAA3 ⁄ BBB- ⁄ BBB- or higher) and have at least $250 million of outstanding face

value. In addition, the securities in the TIPS Index must be denominated in U.S. dollars and must be

fixed-rate and non-convertible. TIPS held in the Federal Reserve System Open Market Account (both

purchases at issuance and net secondary market transactions) are deducted from the total amount

outstanding. The TIPS Index is market capitalization-weighted. The securities held in the TIPS Index

are updated on the last calendar day of each month.

As the composition of the TIPS Index changes based on issuance by the U.S. Treasury, the maturity

and the characteristics of the securities composing the TIPS Investments held in the savings plans will

also change. It is not intended for the TIPS Investments to earn returns in excess of the TIPS Index.

Expenses

The investment management fees and related investment contract expenses for the TIPS Fund may

vary from approximately .03% to .05% of Fund assets annually.

Investment Manager

Lockheed Martin Investment Management Company (LMIMCo), a wholly owned subsidiary of Lockheed

Martin Corporation, directs the overall asset allocation of the TIPS Investments in the savings plans.

LMIMCo has retained the following manager to manage the TIPS Investments in the savings plans:

BlackRock Financial Management, Inc.

LMIMCo may change managers at any time without notice to participants.

Special Transfer Restrictions Applicable to the Stable Value Fund

Amounts that are transferred out of the Stable Value Fund must remain invested in a Core or Target

Date Fund for at least 90 days before they can be transferred into the TIPS Fund, the Government

Short Term Investment Fund or the Self-Directed Brokerage Account.

Additional information or assistance

Please review this information and file with your important savings plan documents. If you have any

questions about this document:

Access the Savings Plan Web Tool by visiting LM People at https://lmpeople.lmco.com via the

Intranet (https://www.lmpeople.com via the Internet) > Pay and Benefits > Savings Plan. Or, go

directly to https://lmco.voya.com.

Call the Savings Plan Information Line toll-free at 800-444-4015. From outside the U.S. dial

904-791-2020. Customer service representatives are available Monday through Friday 8 a.m.

to 8 p.m. Eastern time, except on New York Stock Exchange holidays. For TDD communication

services for the hearing impaired, call 800-579-5708.




104-eSMMS16

Feb. 29, 2016

Summary of Material Modifications Notice of Change in Investment Options This document provides information on changes in the following Lockheed Martin Corporation (LMC) savings plans:

• LMC Salaried Savings Plan (SSP) • LMC Hourly Employee Savings Plan Plus (HSP) • LMC Basic Benefit Plan for Hourly Employees (BBP) • LMC Operations Support Savings Plan (OSSP) • LMC Performance Sharing Plan for Bargaining Employees (PSP) • LMC Capital Accumulation Plan (CAP) • LMC Capital Accumulation Plan for Hourly Employees (HCAP) • LMC Deferred Management Incentive Compensation Plan (DMICP) • LMC Nonqualified Capital Accumulation Plan (NCAP) • LMC Supplemental Savings Plan (NQSSP)

This document is called a Summary of Material Modifications (SMM) to the official plan summary, known as the Summary Plan Description (SPD), which includes the Investment Options Guide. About this Notice The purpose of this SMM is to inform you of changes to the Glide Path of the Target Date Funds, which are twelve custom-designed investment options offered to participants in the Savings Plans listed above. Each Target Date Fund (TDF), which comprises a mix of underlying separate stock, bond and other asset class portfolios, is designed to be a complete, diversified investment program appropriate for a particular time horizon based on an anticipated retirement date. The Glide Path refers to the mix of various asset classes (e.g., stocks, bonds, diversifiers) in each of the TDFs. The Glide Path gradually adjusts across the portfolio of investments considered appropriate for your age according to a preset schedule designed and monitored by investment professionals. The Glide Path changes discussed here will impact the asset mix of each TDF. Glide Path Change for Target Date Funds Effective April 1, 2016, the Glide Path of the TDFs will be modified. While there are several asset classes within the TDFs (e.g., domestic equity, international equity, fixed income, commodities, stable value, real estate, etc.), the only asset classes impacted by this change are domestic equity and international equity. Specifically, the allocation to domestic equity will increase while the allocation to international equity will correspondingly decrease. The magnitude of the allocation shift from international equity to domestic equity differs by TDF, ranging from approximately 2% for TDF2005 to approximately 4% for TDF2060. More details regarding the new Glide Path can be found in the following updated pages of the Investment Options Guide for the Lockheed Martin Corporation Savings Plans:

• 200gSPIOG Target Date Funds Overview (March, 2016) • 200hSPIOG Investment Options Fact Sheet – Target Date Funds (March, 2016)

These pages also update information provided in the Plan Guides for the Lockheed Martin Corporation Deferred Management Incentive Compensation Plan (DMICP), the Lockheed Martin

https://eo-sharepoint-restricted.external.lmco.com/sites/HRComms/HR/__2016%20Benefits/2016%20Savings/200gSPIOG_TDF_Overview_March2016_FINAL.pdf

https://eo-sharepoint-restricted.external.lmco.com/sites/HRComms/HR/__2016%20Benefits/2016%20Savings/200hSPIOG_TDF_Fact_Sheet_March2016_FINAL.pdf

104-eSMMS16

Corporation Nonqualified Capital Accumulation Plan (NCAP) and the Lockheed Martin Corporation Supplemental Savings Plan (NQSSP). Fee and Expense Information While the Glide Path changes will impact the investment management fees for each TDF, the impact is expected to be relatively insignificant. As a result, there is no change to the range of investment management fees reported for each TDF in Appendix C of the Investment Options Guide. Additional Information or Assistance Please review this information and file with your important savings plan documents. If you have any questions about this document:

• Access the Savings Plan Web Tool by visiting LM People at https://lmpeople.lmco.com via the Intranet (https://www.lmpeople.com via the Internet) > Pay and Benefits > Savings Plan. Or, go directly to https://lmco.voya.com.

• Call the Savings Plan Information Line toll-free at 800-444-4015. From outside the U.S. dial

904-791-2020. Customer service representatives are available Monday through Friday 8 a.m. to 8 p.m. Eastern time, except on New York Stock Exchange holidays. For TDD communication services for the hearing impaired, call 800-579-5708.




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

This material is provided for information purposes and should not be construed as investment advice.

LOCKHEED MARTIN CORPORATION

SAVINGS PLANS INVESTMENT OPTIONS GUIDE

Lockheed Martin Corporation Savings Plans – Investment Options Guide

September 2015 200bSPIOG

Important Notes

This Investment Options Guide (“Guide”)

summarizes the investment options available for the

Lockheed Martin Corporation (“LMC”) savings plans

(the “Plans” or the “Plan”) listed below as of

September 1, 2015 and may be updated from time-

to-time thereafter.


LMC Hourly Employee Savings Plan Plus

(HSP)

LMC Basic Benefit Plan for Hourly Employees

(BBP)


LMC Performance Sharing Plan for Bargaining

Employees (PSP)

LMC Capital Accumulation Plan (CAP)

LMC Capital Accumulation Plan for Hourly

Employees (HCAP)

This Guide along with separate booklets describing

Plan features constitute the Summary Plan

Description (“SPD”) for the Plans listed above. It

replaces the Investment Options Guide effective

November 2013 and any subsequent Summaries of

Material Modifications (“SMM”). However, the plan

related information in the SPDs and SMMs

continues to apply.

You can review the SPDs and SMMs and all other

information about the Plans, including, but not

limited to, additional information on Plan

investments, which include:

the mechanics for making investment

choices,

the procedures in the event of a market

disruption,

the voting rights with respect to investment

options,

Plan trading restrictions, and

individual participant responsibility for

making investment choices.

All investment options may contain cash reserves in

order to provide liquidity for participant transactions.

Cash reserves are managed by State Street Global

Advisors, a division of State Street Bank and Trust

Company, except where the investment option is a mutual

fund, in which case the cash reserves are managed by the

mutual fund manager. With the exceptions of the

Employee Stock Ownership Plan (ESOP) Fund

(available only in the SSP, HSP and BBP) and the

Company Common Stock Fund, the investment

options may invest in derivative securities for

hedging, liquidity or asset allocation purposes. The

investment risk associated with these derivatives

may differ from that of the investment options. For

mutual fund investment options, you can review the

fund prospectus for information on the use of

derivatives in each fund.

For a copy of your savings plan’s SPD, access the

Savings Plan Web Tool or call the Savings Plan

Information Line.

Lockheed Martin Corporation and its subsidiaries

(the “Company”), the Plan Trustee, and other Plan

fiduciaries are not responsible for your investment

choices or investment losses resulting from such

choices, pursuant to section 404(c) of the Employee

Retirement Income Security Act of 1974, as

amended (ERISA), and section 2550.404c-1 of the

Code of Federal Regulations, to which the Plans

adhere. The Company does not guarantee the

performance of these investment funds and is not

liable for any losses you may experience due to

investment performance.

This Guide does not create a contract of

employment between the Company and any

employee. Nothing in this Guide prevents the

Company from terminating or changing the terms of

any employee’s employment.

The Plans are expected to continue indefinitely.

However, the Company, by action of the Board of

Directors or its authorized delegate, reserves the

right to amend, suspend or terminate the Plans at


any time. Any amendment, suspension or

termination will be made by an instrument signed by

the Company.

The information contained in this Guide is not legal

or tax advice and should not be considered as

such. The tax rules are complicated and their

impact may differ depending on each individual’s

specific circumstances. Please consult with your

legal or tax advisor regarding your specific situation.

Each Plan’s terms are set forth in the official plan

document and cannot be modified by the contents

of this Guide or other written or oral statements

from any Lockheed Martin Corporation employee or

representative. Where conflicts exist, the terms as

set forth in the official plan document govern.

Savings Plan Web Tool

The Savings Plan Web Tool is a secure online

resource that allows you to obtain account and Plan

information 24 hours a day, seven days a week.

Access the Savings Plan Web Tool via LM

People at https://lmpeople.lmco.com via the

Intranet (https://www.lmpeople.com via the

Internet) > Pay and Benefits > Savings

Plans.

If you do not have access to LM People, log

on to the Savings Plan Web Tool at

https://lmco.voya.com. You will need your

Social Security number or LM People ID

and password to access your account

through this URL.

Savings Plan Information Line

You can check the status of your account, perform

account transactions, and obtain more details about

the features and benefits of the Plans by calling the

Savings Plan Information Line at:

Toll-free within the U.S.: 800-444-4015

From outside the U.S.: 940-791-2020

For TDD communication services for the

hearing impaired: 800-579-5708.

You will need your password and either your LM

People ID or your Social Security number to access

your account information. The automated phone

system is available 24 hours a day, seven days a

week. Customer service representatives are

available Monday through Friday 8 a.m. to 8 p.m.

Eastern time, except on New York Stock Exchange

holidays.





September 2015 200cSPIOG

Federal Securities Law/Prospectus

United States securities laws require the Company

to provide Participants with specific information

concerning the Plans and their operation. This

information is provided in several documents known

collectively as a “prospectus.” Securities and

Exchange Commission (SEC) rules allow the

Company to “incorporate by reference” into the

“prospectus” information it files with the SEC. This

means the Company can disclose important

information to you by referring to those documents.

Information incorporated by reference is an

important part of this SPD and the prospectus, and

information subsequently filed by the Company with

the SEC automatically updates this information as

well as information in this SPD and the prospectus.

The following documents collectively make up the

prospectus for the Plans:

The Plan documents as amended and

restated from time to time;

The SPDs for the Plans;

The registration statement of which the

prospectus is a part and the documents

incorporated by reference into the

registration statement, which means that

the registration statement refers you to

additional important documents that have

been filed separately with the SEC.

In addition, all documents and reports filed by the

Company with the SEC subsequent to the date of

this prospectus pursuant to Section 13(a), 13(c), 14,

or 15(d) of the Securities Exchange Act of 1934

(Exchange Act) (except, with respect to Current

Reports on Form 8-K, any information that is

furnished) are deemed to be incorporated by

reference in the registration statement. You can

find these documents on the SEC's website at

http://www.sec.gov or at the Company’s website at

http://www.lockheedmartin.com.

You can also obtain copies of any of these

documents, without charge, by making an oral or

written request to the Corporate Secretary as

follows:

Senior Vice President,

General Counsel and Corporate Secretary

Lockheed Martin Corporation

6801 Rockledge Drive

Bethesda, MD 20817

(301) 897-6167

No person has been authorized to give any

information or to make any representations, other

than those contained in this prospectus, in

connection with the offer contained in this

prospectus, and, if given or made, such information

or representations must not be relied upon as

having been authorized by the Company. This

prospectus does not constitute an offer to sell or a

solicitation of an offer to buy any interests or

Common Stock in any jurisdiction to any person to

whom it is unlawful to make such offer or solicitation

in such jurisdiction. Neither the delivery of this

prospectus nor any sale made hereunder will under

any circumstances create any implication that there

has been no change in the affairs of the Company

or in the Plans since the date hereof, or that the

information contained or incorporated by reference

herein is correct as of any time subsequent to its

date.

Neither the SEC nor any state securities

commission has approved or disapproved of these

interests or the Company common stock investment

measures in the Plans, or passed upon the

accuracy or adequacy of this prospectus. Any

representation to the contrary is a criminal offense.

The information contained in this prospectus may

not be current after the date of this prospectus. If

the prospectus is substantially amended, the

Company will provide to you the documents to

update the prospectus. These documents will

contain a notation similar to the notation in the box

(continued)


on the front of this Guide indicating that the new

documents are part of the prospectus. You should

rely only on (1) the information contained in this

prospectus, (2) any future documents provided to

you updating this prospectus, or (3) information that

we have referred you to in any part of the

prospectus.

Any questions about day-to-day administration of

the Plans should be directed to the Savings Plan

Information Line at 800-444-4015. Any other

questions concerning the Plans should be directed

to:

Vice President, Benefits



CCT-115

Bethesda, MD 20817

301-548-2370

Any questions that you have concerning trading in

the Company’s securities may be directed to:

Vice President and

Associate General Counsel

Corporate Securities



MP 233

Bethesda, MD 20817

301-897-6314


September 2015 200dSPIOG

Important Information about the Qualified Default Investment Alternative

Default Investment for your Plan

The Target Date Funds (“TDF”s) are a series of

investment options explained later in this booklet,

that have been chosen by your plan sponsor/plan

fiduciary as the Qualified Default Investment

Alternative (QDIA) for the savings plans.

Automatic Investment of Contributions

If you are a new participant in a Lockheed Martin

savings plan and you do not select any of the

investment options available under your plan, your

contributions and any Company contributions in the

SSP for which you may be eligible (other than the

SSP Company match, which is automatically

invested in the Employee Stock Ownership Plan

(ESOP) Fund), will be invested automatically in the

TDF based on your birth date, per the following

table:




Target Date Fund 2055 January 1, 1988 -- December 31, 1992












Exceptions to the default investments noted above:

Prior to 1/1/2007, the default investment

was the Stable Value Fund

For participants born after December 31,

1987, the default investment option during

the period 1/1/2007 to 1/3/2010 was TDF

2050

For participants born after December 31,

1992, the default investment option during

the period 1/4/2010 to 1/1/2015 was TDF

2055

If one of these exceptions applies to you, please

note your account balance and future contributions

will continue to be invested in the default

investment option until you make a change to your

future investment election.

Right to Direct Investment out of the QDIA

Even if your account is invested in the QDIA

because you did not provide affirmative investment

directions, you have the right to discontinue your

investment in the QDIA and to direct the investment

of your account balance into one or more of the

other investment options available to you under the

Plan. For the 120-day period beginning on the date

of your initial default investment into the QDIA, you

are entitled to transfer the amount automatically

invested in the QDIA to the other investment

options without incurring any fees or expenses

(other than ongoing fees and expenses incurred in

connection with the operation of the Target Date

Funds) and without being subject to any restrictions

(such as the otherwise applicable restriction from

reinvesting in a Target Date Fund for 30 days after

transferring out of that investment option).


The plan provision permitting a maximum of 12

trades per calendar year (with at least one trade per

calendar quarter and one final trade opportunity to

the Stable Value Fund at the end of the calendar

year) will continue to apply. After the initial 120-day

period, you are entitled to transfer the amount

automatically invested in the QDIA to the other

investment options without incurring any fees or

expenses and without being subject to any

restrictions other than the restrictions that are

generally applicable to transfers out of the Target

Date Funds.

Information about the other investment options is

contained in this Guide. You may change your

investment elections at any time by calling the

Savings Plan Information Line or by accessing the

Savings Plan Web Tool.


September 2015 200eSPIOG

Your Investment Options at a Glance

You have the right to invest your account in any of

the investment options available in your savings

plan. The investment options that are right for you

depends on your goals, retirement timeframe,

feelings about risk, and your level of investment

knowledge. To properly invest for retirement, you

need the flexibility that comes from having a range

of choices. That’s why your savings plan offers

three distinct categories of investment options.

Investment Option Fund Type

Target Date Funds Target Date

Core Funds

Government Short Term Investment Fund Domestic Short Term Fixed Income

Stable Value Fund Stable Value

Treasury Inflation-Protected Securities (TIPS) Fund Domestic Inflation-Protected Fixed Income Index

Broad Market Bond Index Fund Domestic Fixed Income Index

S&P 500® Indexed Equity Fund Domestic Stock Index

U.S. Equity Fund Domestic All Cap Stock

Small / Mid-Cap Indexed Equity Fund Domestic Small/Mid-Cap Stock Index

Global Equity Fund Global Stock

International Developed Markets Equity Fund Foreign Stock

MSCI EAFE® Indexed Equity Fund Foreign Stock Index

Global Real Estate Fund Global Real Estate Securities

Emerging Markets Indexed Equity Fund Foreign Emerging Stock Index

High Yield Bond Fund High Yield Fixed Income

Commodities Fund Commodities

Company Common Stock Fund Non-Diversified Domestic Stock

ESOP Fund* Non-Diversified Domestic Stock

Self-Directed Brokerage Account Self-Directed Brokerage Account


MSCI EAFE® is a registered trademark of MSCI Inc.

*Available in the SSP, HSP and BBP only.

Lockheed Martin Investment Management

Company (LMIMCo), a wholly owned subsidiary of

Lockheed Martin Corporation, located at 6901

Rockledge Drive, Bethesda, MD 20817, provides

overall management of the investment options in

the savings plans. LMIMCo often appoints external

investment managers to manage the investment

options and may add to or replace one or more of

these managers at any time without notice to

participants.

Additional Fund Information

You may obtain Morningstar Profile investment

summaries for each investment option in your plan

on the Savings Plan Web Tool. These Profiles

contain specific investment information and are

updated on a quarterly basis. In addition, the

Glossary of Investment Terms, also available on the

Savings Plan Web Tool, provides definitions of

common investment and financial terms relevant to

the investment options in the Plan.


September 2015 200fSPIOG

Four Ways to Invest

1. Target Date Funds

Designed for people who want a simple and

effective option that leaves most ongoing

investment decisions to investment professionals.

2. Core Funds – Mix & Monitor

Designed for people who want to take a more

hands-on approach and select their own mix of

investment options.

Discover Which Way is Right for You

Ask yourself these questions:

1. Do I have the desire to select my own mix of

individual funds?

2. Am I comfortable deciding how much to invest

in each fund?

3. Will I take the time to rebalance regularly,

monitor my investments and make changes as I

get closer to retirement?

If you answer “No” to these questions, then the

Target Date Funds may be appropriate for you.

If you answer “Yes” to one or more of the questions,

then Mix & Monitor may be right for you.

3. Self-Directed Brokerage Account

If you are an experienced investor who has an

understanding of the securities markets and are

willing to take on more responsibility and risk for

managing individual investments, the Self Directed

Brokerage Account allows you to do so.

4. Voya Retirement Advisors Service

Participants who have an account balance in any of

the Plans may use the Voya Retirement Advisors

Service to obtain objective, professional financial

advice and planning to help you set and meet your

retirement goals. The Voya Retirement Advisors

Service will make investment option

recommendations, help forecast your retirement

income, and provide you with the ability to monitor

your account.

The Voya Retirement Advisors Service offers two

ways to get the support you need:

Online Advice - an interactive service,

accessible through the Savings Plan Web

Tool.

Professional Management - a program

that allows you to delegate management of

your account to a professional advisor

(additional fees apply).

For more information, including the fees that apply

should you enroll in the Professional Management

program, access the Savings Plan Web Tool >

Voya Retirement Advisors or call the Savings Plan

Information Line.

Fee and Expense Information for Investment Options in the Plans The insert to this Guide titled “Fee and Expense

Information” (Appendix C) provides the approximate

expected range of annual investment management

fees, annual administrative expenses and total

annual expenses as a percentage of fund assets for

the Core Funds and Target Date Funds. The insert

also gives the approximate expected range of

administrative fees for the Self-Directed Brokerage

Account (“SDBA”) and the Fee Schedule for SDBA

brokerage transactions. The Fee and Expense

Information inserts for all plans will be updated

annually during the first quarter of each year and

will be available on the Savings Plan Web Tool or

by calling the Savings Plan Information Line.


March 2016 200gSPIOG

Target Date Funds Overview

The Target Date Funds are custom-designed funds made available only to Lockheed Martin savings plan

participants. Each Target Date Fund is a fully diversified portfolio managed by an experienced portfolio

management team.

Target Date Fund 2005*



Target Date Fund 2020









How to Select the Target Date Fund That is Right for You

1. Estimate the date you think you might retire or the date you expect to begin withdrawals from your

account.

2. Pick the Target Date Fund corresponding to the year closest to your estimated retirement date or the

date you expect to begin withdrawals from your account.

Target Date Funds – Birth Date Ranges**


Target Date Fund 2005* December 31, 1942 or before

Target Date Fund 2010* January 1, 1943 – December 31, 1947

Target Date Fund 2015* January 1, 1948 – December 31, 1952










*Intended for those near or in retirement

**Birth Date Ranges are determined based on retirement at age 65.



Professionals Manage Your Savings The Target Date Funds are managed by a team of portfolio managers appointed by LMIMCo. LMIMCo may add

or replace one or more portfolios or portfolio managers at any time without notice to participants.

Target Date Glide Path

Over time, the asset mix of each Target Date Fund will be adjusted across a diversified group of assets that is

considered to be appropriate for someone retiring in or near its designated year. Every three months the asset

mix of each fund makes a gradual adjustment to a more conservative mix of investments. This process is

shown on the chart below and is referred to as the “Glide Path.”

The portfolio managers invest in an expanded list of asset classes that include three general categories:

stocks, bonds and diversifiers. Using a Target Date Fund allows you to have exposure to certain asset classes

not otherwise available in the savings plans. For example, the Target Date Funds include allocations to

emerging market bonds and a balanced risk allocation strategy. These are asset classes not available as

separate investment options. All of the Target Date Funds include a mix of actively and passively managed

investments.

The Glide Path provider and manager is AllianceBernstein L.P.



A Simple and Effective Way to Invest

The Target Date Funds with dates furthest in the future have the most aggressive asset mix. They start out

invested primarily in stocks. As the target retirement date for a fund gets closer, and for 15 years after the target

retirement date, the fund is gradually adjusted to a more conservative asset mix, meaning fewer stocks and

more bonds. So by the time you move into retirement, your fund will be more focused on protecting your money

and producing income. This adjustment happens automatically—you don’t have to do a thing.

A Target Date Fund’s asset allocation is based on assumptions regarding expected future asset class returns,

expected retirement date, savings rate, life expectancy and post-retirement income needs. If your

circumstances are significantly different from those assumed for the Target Date Fund nearest your expected

retirement date, a different Target Date Fund or a Mix & Monitor strategy may be more appropriate for you.

Diversification That Changes With Your Needs

You’ve heard about the importance of diversification and the need to avoid “putting all your eggs in one

basket.” Choosing one of the Target Date Funds allows you to diversify your savings account among a

number of different investment funds, focused on a number of different asset classes and managed by

different teams of investment management specialists. This means you’ll be less likely to miss out on

opportunities in any particular investment category.

Multiple Investments in a Single Strategy

Each of the 12 Target Date Funds begins with a particular asset class mix. Here’s an example of the diversified

asset class mix (also known as the asset allocation) for someone who is age 55.



The chart below shows the asset allocation, which follows the Glide Path to adjust over time based on your age.

Benchmarks

The benchmarks for the Target Date Funds are customized blends of representative indices for each asset class.

The benchmark returns are calculated by weighting the monthly index returns of each asset class by each Target

Date Fund’s target allocation. The following benchmarks are currently used to represent the Target Date Funds’

asset classes when calculating the blended benchmark.


Investment Option Fact Sheet

March 2016 200hSPIOG

Target Date Funds

Objective

Target Date Funds offer participants a simple,

one-step approach to fund selection.

Each Target Date Fund is designed to provide an

age-appropriate asset allocation in order to

produce sufficient returns to meet retirement

goals for the average participant. There are no

guarantees that the Target Date Funds’

investment objectives will be met.

Composition and Strategy

The Target Date Funds invest in a number of

underlying investment portfolios created specifically

for use by the Target Date Funds. Each of these

portfolios may be further sub-divided to allow

several different firms to manage the portfolio.

Every three months the asset mix of each Target

Date Fund is rebalanced to gradually adjust to a

more conservative asset mix. This process is

referred to as a Glide Path. Quarterly rebalancing is

used to move each Target Date Fund down the

Glide Path toward a slightly more conservative asset

mix to avoid significant asset mix changes at one

time.

The Target Date Funds also may generate some

income by loaning securities to creditworthy

financial institutions.

Factors Affecting Performance

The Target Date Funds’ investments in common

stocks which include U.S. and foreign equities, are

subject to considerable investment and stock

market risk, including the possibility that stock prices

will decline over short or even extended periods.

Foreign stocks can be volatile due to changing trade

patterns and economic policies, political and social

instability, and currency exchange rate fluctuations.

Small- to mid-sized company stocks carry additional

risk due to volatile cash flow and earnings.

The Target Date Funds’ fixed income/bond

investments, which include U.S. core bonds,

inflation-protected bonds, stable value investments,

high yield bonds, and emerging market bonds, are

sensitive to interest rate changes. When rates rise,

bond values tend to decline and when rates fall,

bond values tend to rise.

The Target Date Funds’ diversifier investments are

intended to provide diversification and returns

uncorrelated to stocks and bonds. These diversifier

investments, which may include but are not limited

to global real estate, commodities and the balanced

risk investments, carry additional risk, some of it

tied to cyclical price trends, inflation or deflation,

and global demand and supply forces.

Performance

Performance information, including how Target

Date Funds have performed over time, along with a

comparative benchmark, can be found in

Appendices A and B of this Guide. Performance

information is updated periodically on the Savings

Plan Web Tool.

(continued)



Target Date Funds

(continued)

Investment Managers


Company (LMIMCo), a wholly owned subsidiary of

Lockheed Martin Corporation, located at 6901

Rockledge Drive, Bethesda, MD 20817, directs the

overall asset allocation of the Target Date Funds

and manages a small portion of the Target Date

Funds. LMIMCo has appointed external portfolio

managers and the Glide Path provider for the

Target Date Funds.

The investment portfolios underlying the Target

Date Funds are currently managed by a number of

investment managers that may include, but are not

limited to:

AllianceBernstein L.P.

Axiom International Investors, LLC


CBRE Clarion Securities LLC

Cohen & Steers Capital Management, Inc.

Columbia Investment Advisors, LLC

Henderson Global Investors

Hexavest Inc.

Invesco Institutional (N.A.) Inc.

J.P. Morgan Investment Management, Inc.

Kleinwort Benson Investors International, Ltd.

LMIMCo

Mar Vista Investment Partners, LLC

Morgan Stanley Investment Management Limited

Neuberger Berman Management LLC

Northern Trust Investments, Inc.

Oaktree Capital Management L.P.

State Street Global Advisors

T. Rowe Price Associates, Inc.

TCW Investment Management Company

Van Berkom and Associates, Inc.

William Blair & Company, LLC

The Glide Path provider and manager is

AllianceBernstein L.P.

LMIMCo appoints the investment managers and

may add or replace one or more of the managers at

any time without notice to the participants.

Fair Value Pricing

Managers of the portfolios underlying the Target

Date Funds, in determining the net asset value

(NAV) of its portfolio, may use fair value pricing

when reliable market quotations are not readily

available or if the value of a security it holds has

been materially affected by events occurring before

the fund’s pricing time but after the close of the

primary markets or exchanges on which the

security is traded, as may happen with foreign

securities. When fair value pricing is employed, the

prices of securities used by a manager to calculate

its fund’s NAV may differ from quoted or published

prices.

Fund Structure

The Target Date Funds were created for the

Company savings plans using a mix of commingled

trust funds, separate accounts and mutual funds.


September 2015 200iSPIOG

Core Funds

Core funds have a particular investment goal and

strategy. The Core Fund lineup includes a variety

of individual funds that cover a broad range of

asset classes. If you are comfortable deciding how

to divide your money among stocks, bonds,

diversifiers and short-term investments, you can

design your own portfolio mix using the Core

Funds.

For more information about any of the mutual funds

available as Core Fund options, including fees and

expenses, call the Savings Plan Information Line at

800-444-4015 for free Fund prospectuses. Read

them carefully before making your investment

choices.

Fair Value Pricing

Managers of the Core Funds, in determining the net

asset value (NAV) of its fund, may use fair value

pricing when reliable market quotations are not

readily available or if the value of a security it holds

has been materially affected by events occurring

before the fund’s pricing time, but after the close of

the primary markets or exchanges on which the

security is traded, as may happen with foreign

securities. When fair value pricing is employed, the

prices of securities used by a manager to calculate

its fund’s NAV may differ from quoted or published

prices.

Investment Option Fund Type

Government Short Term Investment Fund Domestic Short Term Fixed Income

Stable Value Fund Stable Value

Treasury Inflation-Protected Securities (TIPS) Fund Domestic Inflation-Protected Fixed Income Index

Broad Market Bond Index Fund Domestic Fixed Income Index

S&P 500® Indexed Equity Fund Domestic Stock Index

U.S. Equity Fund Domestic All Cap Stock

Small / Mid-Cap Indexed Equity Fund Domestic Small/Mid-Cap Stock Index

Global Equity Fund Global Stock

International Developed Markets Equity Fund Foreign Stock

MSCI EAFE® Indexed Equity Fund Foreign Stock Index

Global Real Estate Fund Global Real Estate Securities

Emerging Markets Indexed Equity Fund Foreign Emerging Stock Index

High Yield Bond Fund High Yield Fixed Income

Commodities Fund Commodities

Company Common Stock Fund Non-Diversified Domestic Stock

ESOP Fund* Non-Diversified Domestic Stock


MSCI EAFE® is a registered trademark of MSCI Inc.

*Available in the SSP, HSP and BBP only.

To read more detailed descriptions of all the Core Funds, refer to the Investment Option Fact Sheets that follow.


September 2015 200jSPIOG

Core Funds – Mix & Monitor

Mix & Monitor

You may create your own investment mix by

choosing any combination of the savings plan’s

Core investment options. (These Core investment

options are not the same as the portfolios used in

connection with the Target Date Funds.) After you

create your mix, you can monitor your investments

and make adjustments as your goals change over

time. You can also rebalance on a regular basis to

bring your asset mix back to the appropriate asset

allocation after any particular funds have out-

performed or under-performed for a period of time.

Here’s the process:

> Match Your Mix to Your Circumstances

A basic investment mix is a percentage of three

main asset classes: stocks, bonds and

diversifiers. Your mix should primarily depend on

your assessment of your own need for capital

appreciation versus preservation of savings.

> Diversify to Manage Risk

Depending on your assessment, you may choose

to allocate more or less to certain sub-asset

classes to provide diversification.

> Select Your Funds

Choose the funds that you believe will best

meet your intended objective target asset mix.

> Monitor and Modify Your Investment Mix

As your investment returns rise and fall over

time, you can rebalance to get back to your

desired stock, bond, and diversifier mix. You

may also want to consider adjusting your mix as

you approach retirement.



September 2015 200kSPIOG

Government Short Term Investment Fund

Objective

The Government Short Term Investment Fund

seeks to provide safety of principal, a high level of

liquidity, and a competitive yield while maintaining a

stable share price. There is no guarantee that the

Fund’s objectives will be met.


The Fund attempts to achieve its investment objective

by investing, under normal circumstances, substantially

all of its assets in obligations issued or guaranteed as

to principal and interest by the U.S. government or its

agencies or instrumentalities (“U.S. government

securities”), in repurchase agreements collateralized by

U.S. government securities, and in money market

mutual funds subject to SEC Rule 2a-7 and other

investment pools that are deemed to be consistent with

the Fund’s investment objective. All of the Fund’s

investments will be denominated in U.S. dollars.

Investments made by the Fund may satisfy some, but

not necessarily all, of the quality, maturity and

diversification requirements set forth in Rule 2a-7 under

the U.S. Investment Company Act of 1940. For

example, the dollar-weighted average maturity and

dollar-weighted average life of the Fund will not

normally exceed 60 days and 120 days, respectively,

and the maximum expected average time to receipt of

principal of any single security will not normally exceed

397 days. The Fund will not invest in a security or other

investment unless it is determined at the time of

investment that it presents minimal credit risk.


This Fund is designed to provide a rate of return

that generally moves with short term market rates.

Due to its high quality, liquidity and short maturity

structure, this Fund will tend to perform better in a

rising interest rate environment. This Fund may

experience inflation risk, which is the chance that

the Fund’s return will not exceed inflation. If the

fund yield is below the expense ratio, total net

returns could be negative.

Performance

Performance information, including how the

Government Short Term Investment Fund has

performed over time along with a comparative

benchmark, can be found in Appendices A and B

of this Guide.

Special Transfer Restrictions Applicable to the

Stable Value Fund

Amounts transferred out of the Stable Value

Fund must remain invested in a Core or Target

Date Fund for at least 90 days before they can be

transferred into the Treasury Inflation-Protected

Securities (TIPS) Fund, the Government Short

Term Investment Fund or the Self-Directed

Brokerage Account.

Investment Manager

The Fund is managed by:



may add or replace one or more managers at any

time without notice to the participants.

Fund Structure

The Fund is a commingled trust fund offered only to

participants in the Company savings plans, not to

the general public.



September 2015 200LSPIOG

Stable Value Fund

Objective

The Stable Value Fund seeks to provide safety of

principal, stable income and liquidity. There is no

guarantee that the Fund’s objective will be met.


The Fund invests primarily in investment contracts

and money market instruments. Investment

contracts are issued by insurance companies and

banks, and hold fixed income securities of various

maturities and various levels of credit quality.

The investment contracts are designed to provide

for participant withdrawals and transfers at book

value according to the terms of the plan and the

contracts. The book value is equal to participant

net contributions plus credited interest. Under

certain adverse market environments and subject to

satisfaction of contract provisions, the contract

issuer may be required to make payments to the

Fund if the Fund’s assets are insufficient to satisfy

participant-initiated redemptions at book value.

Investment contracts are longer-term investment

vehicles with correspondingly higher expected

rates of return and risk than short-term securities.

While most securities held under investment

contracts will be of high credit quality, a small

portion may be allocated to lower quality (i.e.,

below investment grade) securities.

The Fund also may invest in money market

instruments, which are shorter-term securities with

maturities of 397 days or less.

The composition of investments in the Stable Value

Fund can range up to 100% investment contracts

or 100% money market instruments, based on

market conditions.

The Fund may also generate some income

by lending securities to creditworthy financial

institutions.


This Fund is designed to provide a rate of return

that is stable and predictable and that generally

moves toward current market rates. This Fund may

experience inflation risk, which is the chance that

the Fund’s return will not exceed inflation. The designation “Stable Value” is not meant to suggest

that this investment option will not experience any

fluctuations in net asset value.

Performance

Performance information, including how the Stable

Value Fund has performed over time along with a


Appendices A and B of this Guide.


Stable Value Fund

Amounts that are transferred out of the Stable

Value Fund must remain invested in a Core or

Target Date Fund for at least 90 days before they

can be transferred into the Treasury Inflation-

Protected Securities (TIPS) Fund, the

Government Short Term Investment Fund or the

Self-Directed Brokerage Account.

Investment Manager


Company (LMIMCo) directs the overall asset

allocation of the Fund. It has retained external

managers to manage portions of the Fund,

including:

Invesco Institutional (N.A.), Inc.




time without notice to participants.

Fund Structure The Fund is a separate account under the Plans’

trust that is available only to participants in the

Company savings plans, not to the general public.



September 2015 200mSPIOG

Treasury Inflation-Protected Securities (TIPS) Fund

Objective

The Treasury Inflation-Protected Securities (“TIPS”)

Fund seeks to provide a real return above inflation

(as measured by the Consumer Price Index) by

closely replicating the total return of the Barclay’s

U.S. Government Inflation-Linked Bond Index. That

index is comprised of all U.S. TIPS with greater than

one year until maturity and at least $500 million

outstanding. There is no guarantee that the Fund’s

objective will be met.


The Fund seeks to closely match the characteristics

of the Barclay’s U.S. Government Inflation-Linked

Bond Index by investing in the same securities as

the Index. In addition, the Fund may invest in other

inflation-linked securities not included in the Index,

inflation indexed swaps, money market instruments,

and short-term investment funds to facilitate

transactions. Under normal circumstances, the

majority of the Fund’s net assets will be invested in

TIPS of various maturities weighted to reflect the

composition of the Index.

The average maturity of both the Fund and the

Index has ranged from 6.6 to 14.6 years. Duration

has ranged from 5.8 to 10.6 years. As the

composition of the Index changes based upon

issuance by the U.S. Treasury and the maturity of

the securities, the characteristics of the Fund will

change to reflect it. It is not the intention of the

Fund to earn returns in excess of the Index.


TIPS pay a fixed interest payment upon a principal

amount which varies with underlying inflation, as

measured by the Consumer Price Index (“CPI”).

The Fund’s investments are sensitive to changes in

the CPI as well as to changes in real interest rates.

When real rates rise, bond values decline and when

real rates fall, values rise.

Performance

Performance information, including how the TIPS

Fund has performed over time along with a




Stable Value Fund

Amounts that are transferred out of the Stable

Value Fund must remain invested in a Core or

Target Date Fund for at least 90 days before they

can be transferred into the TIPS Fund, the

Government Short Term Investment Fund or the

Self-Directed Brokerage Account.

Investment Managers







Fund Structure

The Fund is a separate account under the Plan’s





September 2015 200nSPIOG

Broad Market Bond Index Fund

Objective

The Broad Market Bond Index Fund seeks to

provide a high level of income by closely

approximating the overall performance of the U.S.

bond market as measured by the Barclays U.S.

Aggregate Bond Index. There is no guarantee that

the Fund’s objective will be met.


The Fund employs sophisticated indexing methods

to construct a portfolio that closely matches the

characteristics of the Barclays U.S. Aggregate Bond

Index (which is comprised of several thousand fixed

income securities) without having to own all of the

securities in the Index. The Fund invests in U.S.

Treasury Securities as well as Government Agency,

Investment Grade, Corporate, Residential,

Commercial and Asset Backed Sectors with an

attempt to minimize turnover. Derivatives are used

in the form of U.S. Treasury futures contracts. The

average maturity of the Fund is typically in excess

of 6 years and duration is typically over 4 years.

The Fund may also generate some income by

lending securities to creditworthy financial

institutions.


The Fund’s fixed income investments are sensitive

to interest rate changes. When rates rise, bond

values tend to decline and when rates fall, values

tend to rise.

Performance

Performance information, including how the Broad

Market Bond Index Fund has performed over time

along with a comparative benchmark, can be found

in Appendices A and B of this Guide.

Investment Manager






Fund Structure


qualified employee benefit plan investors.



September 2015 200oSPIOG

S&P 500® Indexed Equity Fund

Objective

The S&P 500®

Indexed Equity Fund is designed to

produce results that closely approximate the overall

performance of large U.S. company stocks, as

measured by the Standard & Poor’s 500 Index,

which is comprised of 500 common stocks that are

determined by Standard & Poor’s to be

representative of the overall U.S. equity market.

There is no guarantee that the Fund’s objective will

be met.


The Fund seeks to replicate the total return of the

Standard & Poor's 500 Index. When it is not

possible or practicable to buy and/or hold the stocks

in proportion to their weighting in the Index, the

Fund may employ a sampling or optimization

technique to construct the portfolio. The Fund uses

a passive investment approach.

To meet liquidity needs, however, the Fund may

hold a small portion of its assets in money market

securities and in index futures contracts. This

approach results in returns that closely parallel

those of the Index. The manager's strategy is to buy

and hold securities, trading only when there is a

change to the S&P 500®

Index.



institutions.


As a fund investing primarily in common stocks, the

Fund is subject to investment and stock market risk,

including the possibility that common stock prices


Performance

Performance information, including how the S&P

500®

Indexed Equity Fund has performed over time



Investment Manager






Fund Structure



S&P 500®

is a registered trademark of The

McGraw-Hill Companies, Inc



September 2015 200pSPIOG

U.S. Equity Fund

Objective

The U.S. Equity Fund has been designed to

outperform the Russell®

3000 Index. The Russell®

3000 Index measures the performance of 3,000 of

the largest U.S. companies. This index includes

large-, mid-, and small-cap growth and value

stocks. There is no guarantee that the Fund's



The Fund invests primarily in the broad U.S. stock

market including large, mid-, and small-cap growth

and value stocks regularly traded in public markets.

To meet liquidity needs, the Fund may hold a small

portion of its assets in cash or cash equivalents.


loaning securities to creditworthy financial

institutions.


Because the Fund invests primarily in common

stocks, it is subject to stock market and investment

risk. The Fund could lose money over short or long

time periods. The Fund’s value and total return

could fluctuate within a wide range.

Performance

Performance information for the Fund , including

how the U.S. Equity Fund has performed over time



Investment Managers



allocation of the Fund. It has retained several


including, but not limited to:

Alliance Bernstein, LP

Artisan Partners Limited Partnership

Columbia Management Investment Advisers,

LLC

Eagle Capital Management, LLC

JP Morgan Investment Management, Inc.

Northern Trust Investments, N.A.

Palisade Capital Management, LLC

Sands Capital Management


Van Berkom and Associates, Inc.

Vulcan Value Partners

Wellington Management Company, LLP

Wells Capital Management, Inc.

William Blair & Company, LLC




Fund Structure

The Fund is a separate account under the Plans’



Russell®

is a registered trademark of Russell

Investments.



September 2015 200qSPIOG

Small / Mid-Cap Indexed Equity Fund

Objective

The Small / Mid-Cap Indexed Equity Fund seeks to

match the total return performance of the Russell®

Small Cap Completeness Index. There is no



The Fund consists of those securities in the

Russell®

Small Cap Completeness Index. This

Index is comprised of all stocks in the Russell®

3000 Index minus those in the S&P 500®

Index, and is a benchmark for the small- to mid-cap

sector of the U.S. equity market. The Fund invests

in all 2,500 stocks in the Russell®

Small Cap

Completeness Index.

The Fund is managed using a “passive” or

“indexing” investment approach, by which the

manager attempts to match, before expenses, the

performance of the Index. The manager will

typically attempt to invest in the equity securities

comprising the Index, in approximately the same

proportions as they are represented in the Index.

Equity securities may include common stocks,

preferred stocks, depository receipts, or other

securities convertible into common stock. The Fund

may purchase securities in their initial public

offerings (“IPOs”). In some cases, it may not be

possible or practicable to purchase all of the

securities comprising the Index, or to hold them in

the same weightings as they represent in the

Index. In those circumstances, the manager may

employ a sampling or optimization technique to

construct the portfolio in question.

From time to time securities are added to or

removed from the Index. The manager may sell

securities that are represented in the Index, or

purchase securities that are not yet represented in

the Index, prior to or after their removal or addition

to the Index.



institutions.


Since the Fund invests a large majority of assets in

common stocks, it is subject to considerable

investment and stock market risk, including the

possibility that stock prices will decline over short or

even extended periods. Small- to mid-sized

company stocks have more unpredictable growth

patterns and carry additional risks due to volatile

cash flows and earnings.

Performance

Performance information, including how the Small /

Mid-Cap Indexed Equity Fund has performed over

time along with a comparative benchmark, can be

found in Appendices A and B of this Guide.

Investment Manager






Fund Structure



Russell®

is a registered trademark of Russell

Investments.

S&P 500®

is a registered trademark of The McGraw-Hill

Companies, Inc.



September 2015 200rSPIOG

Global Equity Fund

Objective

The Global Equity Fund has been designed to

outperform the MSCI All Country World (ACWI)

Investable Market Index (IMI) Net. This Index

includes both large- and small-cap companies as

well as value and growth styles of equity markets all

over the world. The MSCI ACWI IMI Net includes

exposure to developed as well as emerging

markets.

The principal objective of the Fund is long-term

growth of capital; potential dividend income is a

secondary objective.


be met.


The Fund invests primarily in U.S. and foreign

stocks including large-, mid-, and small-cap stocks

regularly traded in public markets.





institutions.


The Fund may be affected by risks associated with

investing globally, including, but not limited to,

economic policies, currency exchange rate

fluctuations, exchange rate control policies, and

economic, political and social instability.






Performance

Performance information, including how the Global

Equity Fund has performed over time along with a



Investment Managers






Artisan Partners Limited Partnership

Capital Research and Management

Company

Kleinwort Benson Investors International,

Ltd


Wellington Management Company LLP




Fund Structure






September 2015 200sSPIOG

International Developed Markets Equity Fund

Objective

The International Developed Markets Equity Fund

has been designed to outperform the MSCI World

ex USA Investable Market Index (IMI) Net over the

long term as additional managers may be added

over time. This Index includes large- and small-cap

value and growth stocks of non-USA countries

defined by MSCI Barra as “developed” international

equity markets. The principal objective of the Fund

is long-term growth of capital; potential dividend

income is a secondary objective. There is no



The Fund invests primarily in foreign stocks

including small-, mid-, and large-cap stocks

regularly traded in public markets.





institutions.



investing internationally, including, but not limited

to, economic policies, currency exchange rate








Performance


International Developed Markets Equity Fund has


benchmark, can be found in Appendices A and B

of this Guide.

Investment Managers



allocation of the Fund, and has retained the

following manager to manage the Fund:



may add or replace one or more managers at

any time without notice to participants.

Fund Structure






September 2015 200tSPIOG

MSCI EAFE® Indexed Equity Fund

Objective

The MSCI EAFE®

Indexed Equity Fund is an index

fund designed to produce results that closely

approximate the overall performance of the MSCI

Inc. (MSCI) Europe, Australasia, Far East (EAFE)

Index.

The MSCI EAFE®

Index is an equity index which

captures large- and mid-cap representation across

Developed Markets countries* around the world,

excluding the US and Canada. The Index covers

approximately 85% of the free float-adjusted

market capitalization in each country.

* Developed Markets countries in the MSCI EAFE®

Index include Australia, Austria, Belgium, Denmark,

Finland, France, Germany, Hong Kong, Ireland,

Israel, Italy, Japan, the Netherlands, New Zealand,

Norway, Portugal, Singapore, Spain, Sweden,

Switzerland and the UK.


be met.


The Fund owns all stocks in the MSCI EAFE®

Index

in the same proportion as the Index. To meet

liquidity needs, however, the Fund may hold a small

portion of its assets in money market securities and

index futures contracts. This approach results in

returns and Fund characteristics that closely

parallel those of the Index. The manager’s strategy

is to buy and hold securities, trading only when there

is a change to the MSCI EAFE® Index.

The Fund may also generate some income by lending

securities to creditworthy financial institutions.



investing internationally, including, but not limited to,







time periods. The Fund’s value and total return could

fluctuate within a wide range.

Performance

Performance information, including how the MSCI

EAFE®

Indexed Equity Fund has performed over

time along with a comparative benchmark, can be

found in Appendices A and B of this Guide.

Investment Manager



LMIMCo appoints the investment managers and may

add or replace one or more managers at any time

without notice to participants.

Fund Structure



MSCI EAFE®

is a registered trademark of MSCI Inc.



September 2015 200uSPIOG

Global Real Estate Fund

Objective

The Global Real Estate Fund is designed to

produce results that generally follow the direction of

the FTSE EPRA/NAREIT Developed Real Estate

Index – Net Total Return to U.S. Investors, which is

designed to reflect the stock performance of

companies engaged in specific aspects of the major

real estate markets/regions of the developed world.

Performance of this index is listed in U.S. dollars

and assumes reinvestment of dividends. There is

no guarantee that the Fund’s objectives will be met.


The Fund is an actively-managed fund that invests

primarily in equity, preferred equity and convertible

debt securities of companies located throughout the

world that are mainly in the real estate industry,

including real estate investment trusts (REITs), real

estate operating companies (REOCs), limited

partnerships and similar entities established in or

outside the United States. These real estate

companies generally are engaged directly in real

estate management or development activities or

invest directly in real estate and/or mortgages.

Such companies may concentrate in a particular

region or property type.

The Fund was created for the Company savings

plans using multiple managers and may include a

mix of commingled trust funds, mutual funds and

separate accounts. To meet liquidity needs, the

Fund may hold a portion of its assets in money

market securities, commingled short term

investment funds and index futures contracts.



institutions.



investing globally, including, but not limited to,



economic, political and social instability. The Fund

is also subject to investment and market risk,

including the possibility that security prices will

decline over short or even extended periods.

Investing in real estate companies entails the risks

of the real estate business generally, including the

risks of owning real estate directly, risks that relate

specifically to the way in which real estate

companies are organized and operated, sensitivity

to economic and business cycles, changing

demographic patterns and government actions.

The real estate sector may underperform relative

to other sectors or the overall market.

This Fund may use derivatives, including futures,

options, forward contracts, swaps and structured

investments, to modify exposure to a market or to

currency exchange rates or interest rates and other

hedging and non-hedging purposes. Derivative

instruments may involve a high degree of financial

risk. These risks include: the risk that a small

movement in the price of the underlying security or

benchmark may result in a disproportionately large

movement, unfavorable or favorable, in the price of

the derivative instrument; risk of default by a

counterparty; and the risk that a transaction may not

be liquid.

The Fund is “non-diversified” under the Investment

Company Act of 1940 and may invest a large

percentage of its assets in fewer issuers than

“diversified” mutual funds. Because of the smaller

number of securities generally held in the Fund’s

portfolio, the Fund may be subject to greater risks

than a more diversified fund. A change in the value

(continued)



Global Real Estate Fund (continued)

of any single holding may affect the overall value of

the portfolio more than it would affect a diversified

fund that holds more investments.

Performance

Performance information, including how the Global

Real Estate Fund has performed over time along

with a comparative benchmark, can be found in


Investment Managers


Company (LMIMCo), directs the overall asset



including:

CBRE Clarion Securities LLC

Morgan Stanley Investment Management





Fund Structure

The Fund is a separate account under the Plan’s





September 2015 200vSPIOG

Emerging Markets Indexed Equity Fund

Objective

The Emerging Markets Indexed Equity Fund is an

index fund designed to produce results that closely

approximate the overall performance of the MSCI

Emerging Markets Index®.

The MSCI Emerging Markets Index® captures

large- and mid-cap representation across

Emerging Markets (EM) countries*. The Index

covers approximately 85% of the free float-

adjusted market capitalization in each country.

* EM countries include: Brazil, Chile, China,

Columbia, Czech Republic, Egypt, Greece,

Hungary, India, Indonesia, Malaysia, Mexico,

Peru, Philippines, Poland, Qatar, Russia, South

Africa, South Korea, Taiwan, Thailand, Turkey

and United Arab Emirates.


be met.


The Fund owns substantially all of the stocks in the

MSCI Emerging Markets Index®

in the same

proportion as the Index. The MSCI Emerging

Markets Index®

is made up of common stocks of

companies located in emerging markets around the

world.

The manager’s strategy is to buy and hold

securities, trading only as necessary to track the

MSCI Emerging Markets Index®. To meet liquidity

needs, however, the Fund may hold a small portion

of its assets in money market securities and in

index futures contracts. This approach results in

returns and Fund characteristics that closely

parallel those of the Index.



foreign markets, including, but not limited to,

economic condition changes, financial market

liquidity, social and political instability and

fluctuation in currency and exchange rates. This

Fund may use derivatives such as futures and

forwards to maintain equity and currency exposure

for its cash position.

As a fund investing primarily in common stocks, the

Fund is subject to investment and stock market risk,

including the possibility that common stock prices


Performance


Emerging Markets Indexed Equity Fund has


benchmark, can be found in Appendices A and B of

this Guide.

Investment Manager



LMIMCo appoints the investment managers and may

add or replace one or more managers at any time

without notice to participants.

Fund Structure



MSCI Emerging Markets Index

® is a registered trademark

of Morgan Stanley Capital International.



September 2015 200v1SPIOG

High Yield Bond Fund

Objective

The High Yield Bond Fund seeks to achieve an

attractive total return (income plus capital

preservation) over time by investing primarily in

U.S. dollar-denominated fixed income securities

that are rated below investment grade (often

referred to as “junk bonds”) issued by U.S. and

foreign corporations, governments and agencies.

The Fund also invests in interests in bank loans.

The Fund’s return is benchmarked against the Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index. There is no guarantee that the Fund’s objective will be met.


Under normal market conditions, the Fund will

invest primarily in high yield debt instruments.

These high yield debt instruments include corporate

debt securities as well as bank loans rated below

investment grade by a nationally recognized

statistical rating organization, or if unrated,

determined to be of comparable quality. The fund

may also invest in credit-linked notes and certain

derivatives.

The weighted average maturity of the Fund will

typically be between three and ten years. Credit risk

will be managed through disciplined credit analysis

and diversification of credit quality.

The Fund may invest in securities whose ratings

imply an imminent risk of default with respect to

repayment of principal and payment of interest.



institutions.


The Fund’s performance is primarily dependent on

the performance of the high-yield bond and loan

market. The market’s behavior is unpredictable,

particularly in the short term. Some of the factors

that can significantly affect the performance of the

Fund include market conditions, interest rate risk

and credit risk.

The Fund could lose money over short or long time

periods. The Fund’s value and total return could

fluctuate within a wide range.

Performance

Performance information, including how the High

Yield Bond Fund has performed over time along



Investment Managers


Company (LMIMCo), directs the overall asset




Columbia Management Investment

Advisers, LLC

Neuberger Berman Management LLC




Fund Structure






September 2015 200wSPIOG

Commodities Fund

Objective

The Commodities Fund is designed to track or

exceed the returns of the Bloomberg Commodity

Index Total Return (Bloomberg Index) over the

long term. The Fund will attempt to achieve this

objective by investing in instruments, including

derivatives and equity securities that provide

exposure to the commodities markets.

Commodities have exhibited return patterns that

are uncorrelated to stocks and bonds, which

could make them a good diversifier for your

portfolio. There is no guarantee that the Fund’s



The Fund invests primarily in commodity-linked

investments that provide exposure to the

performance of the commodities markets, and other

fixed-income and debt instruments. The Fund may

invest in equities and derivative instruments,

including options, futures, swaps, structured

securities and other derivative investments. The

Fund may also invest in foreign securities. Cash

balances and money used as collateral for

derivative exposures will be invested primarily in

short-term investment grade fixed income

securities. While the Fund may not purchase non-

investment grade fixed-income securities, the Fund

may continue to hold fixed income securities that

become non-investment grade at the discretion of

the investment manager(s). The Fund’s

performance is measured against the Bloomberg

Commodity Index Total Return.


The prices of commodity-linked derivatives may

move in different directions than investments in

traditional equity and debt securities. Exposure to

the commodities markets may subject the Fund to

greater volatility than investments in traditional

securities. Commodity derivative instruments may

involve a high degree of financial risk. These risks

include:

Leverage risk -- the risk that a small movement in

the price of the underlying security or benchmark

may result in a disproportionately large

movement, unfavorable or favorable, in the price

of the derivative instrument.

Counterparty risk -- the risk that a default by another

party can result in a failure to collect assets or

returns earned by the Fund.

Volatility risk -- the risk that the high rate of

change in the prices of commodities will prevent

the Fund from buying or selling the instruments at

profitable prices.

Liquidity risk -- the risk that certain factors may

prevent the purchase or sale of the derivatives or

securities, leaving the Fund with an undesired

position for some period of time and may

compound the effects of volatility risk and

leverage risk.

Reinvestment risk -- the risk that changes in

interest rates may cause commodity derivative

prices to fall.

Regulatory risk -- the risk that US-based and

global regulators may restrict, limit, or otherwise

change the way commodity derivatives may be

traded by market participants.

Storage cost risk -- the risk of a fundamental

change in the cost of producing, transporting,

holding, or preserving the value of a commodity.

Hedger/Speculator risk -- Hedgers and speculators

are the two market participants that generally

transact in commodity derivative markets. Hedgers

generally attempt to ensure that the cost at which

they produce or sell a good is fixed, whereas

speculators make bets that a price will move in a

certain direction. Hedger/Speculator risk results

when market forces create incentives for hedgers

and speculators to cause large price fluctuations.

The Fund utilizes an active management

approach. The percentage of the Fund’s assets

(continued)



Commodities Fund (continued)

linked to a particular commodity market will vary

from time to time based on the investment

manager’s assessment of the appreciation

possibilities of the commodities as well as changes

in the commodity’s underlying weight in the

Bloomberg index.

The Fund may also invest in foreign securities,

which may be more volatile than investments in U.S.

securities and may be subject to fluctuation and

sudden economic and political developments. The

Fund may also hold non-investment grade fixed-

income securities, which are considered speculative.

Non-investment grade fixed-income securities and

unrated securities of comparable credit quality are

subject to the increased risk of an issuer’s inability to

meet principal and interest payment obligations.

The Fund is “non-diversified” under the Investment

Company Act of 1940 and may invest a large

percentage of its assets in fewer issuers than

“diversified” mutual funds. Because of the smaller

number of securities generally held in the Fund’s

portfolio, the Fund may be subject to greater risks

than a more diversified fund. A change in the value

of any single holding may affect the overall value of

the portfolio more than it would affect a diversified

fund that holds more investments.

Fund returns may be affected by risks associated

with foreign markets, including, but not limited to,

economic condition changes, financial market

liquidity, social and political instability and currency

and exchange rates. Although this Fund will

primarily use derivatives such as futures and

forwards to maintain its commodity exposure, the

Fund may also use equity and currency securities.

The Fund may invest in commodity futures, which

may be more volatile than equities related to

commodity operations or the underlying prices of

physical commodities. In times when the forward

prices of commodities exceed the current prices, a

commodity futures portfolio may lose value even

during periods where underlying physical

commodity prices are unchanged or rising. The

Fund will invest cash collateral using primarily

investment grade fixed income securities. As a fund

investing in common stocks, the Fund is subject to

investment and stock market risk, including the

possibility that common stock prices will decline over

short or even extended periods.

Performance


Commodities Fund has performed over time along



Investment Managers



allocation of the Fund and may manage all or

portions of the Fund. In addition, LMIMCo may

retain external managers to manage portions of the

Fund, and may add or replace one or more

managers at any time without notice to participants.

Fund Structure






September 2015 200xSPIOG

Company Common Stock Fund

Objective

The Company Common Stock Fund invests

primarily in shares of Lockheed Martin Corporation

common stock and seeks growth over the long term

through dividends and appreciation in the stock's

value. There is no guarantee that the Fund’s



The Fund is invested primarily in Lockheed Martin

common stock. However, a small portion of the

Fund's assets is held in cash equivalent reserves to

allow for the daily processing of fund transfers

(reallocations and spot transfers) and withdrawals.

Cash equivalent reserves typically range between

.25% and 1% of the Fund, but may be as high as

10%. Because the Fund also invests in cash

equivalent reserves, the Fund's performance may

vary from that of Lockheed Martin common stock.


The Fund is neither a mutual fund nor a diversified

or managed investment option. Because this Fund

is not diversified, the value of the Fund may

experience large fluctuations based on Lockheed

Martin Corporation’s financial performance, stock

market volatility and general economic conditions.

Performance


Company Common Stock Fund has performed over

time, can be found in Appendices A and B of this

Guide.

Dividends

You control how your quarterly dividends, paid on

the shares attributable to your investment in the

Fund, are managed. You can decide to reinvest the

dividends in the Fund, which will keep the dividends

in the Plan free from taxes until you remove them or

you can decide to have them distributed directly to

you as taxable income on a semi-annual basis. The

SPD for your savings plan has complete details on

the treatment of dividends for the Company

Common Stock Fund.

Investment Manager






Fund Structure

This Fund was created for the Company savings

plans under the Plans’ trust and is only available to

participants in those plans, not to the general

public.

The Importance of Diversifying Your Retirement

Savings

To help achieve long-term retirement security, you

should give careful consideration to the benefits of

a well-balanced and diversified investment portfolio.

Spreading your assets among different types of

investments can help you achieve a favorable rate

of return while minimizing your overall risk of losing

money. This is because market or other economic

conditions that cause one category of assets, or

one individual security, to perform well often cause

another asset category, or another particular

security, to perform poorly.

If you invest more than 20% of your retirement

savings in any one company or industry, your

savings may not be properly diversified. Although

diversification is not a guarantee against loss, it is

an effective strategy to help you manage

investment risk.

Note: Federal securities laws prohibit a participant

from directing investments into or out of the

Company Common Stock Fund if the participant is

in possession of material nonpublic information.

Certain officers subject to Section16 of the

Securities and Exchange Act of 1934 are also

restricted in their ability to direct transactions into or

out of the Company Common Stock Fund.



September 2015 200ySPIOG

ESOP Fund Available only in the SSP, HSP and BBP

Objective

The ESOP Fund invests primarily in shares of

Lockheed Martin Corporation common stock and

seeks growth over the long term through dividends

and appreciation in the stock's value. There is no



The Fund is invested primarily in Lockheed Martin

common stock. However, a small portion of the

Fund's assets is held in cash equivalent reserves to

allow for the daily processing of fund transfers

(reallocations and spot transfers) and withdrawals.

Cash equivalent reserves typically range between

.25% and 1% of the Fund, but may be as high as

10%. Because the Fund also invests in cash

equivalent reserves, the Fund's performance may

vary somewhat from that of Lockheed Martin

common stock.


The Fund is neither a mutual fund nor a diversified

or managed investment option. Because this Fund

is not diversified, the value of the Fund may

experience large fluctuations based on Lockheed

Martin Corporation’s financial performance, stock

market volatility and general economic conditions.

Performance

Performance information, including how the ESOP

Fund has performed over time, can be found in


Dividends

You control how your quarterly dividends, paid on

the shares attributable to your investment in the

Fund, are managed. You can decide to reinvest the

dividends in the Fund, which will keep the dividends

in the Plan free from taxes until you remove them or

you can decide to have them distributed directly to

you as taxable income on a semi-annual basis. The

SPD for your savings plan has complete details on

the treatment of dividends for the ESOP Fund.

Investment Manager






Fund Structure

This Fund was created for the Company savings

plans under the Plans’ trust and is only available to

participants in those plans, not to the general

public.

The Importance of Diversifying Your Retirement

Savings

To help achieve long-term retirement security, you

should give careful consideration to the benefits of

a well-balanced and diversified investment portfolio.

Spreading your assets among different types of

investments can help you achieve a favorable rate

of return, while minimizing your overall risk of losing

money. This is because market or other economic

conditions that cause one category of assets, or

one individual security, to perform well often cause

another asset category, or another particular

security, to perform poorly.

If you invest more than 20% of your retirement

savings in any one company or industry, your

savings may not be properly diversified. Although

diversification is not a guarantee against loss, it is

an effective strategy to help you manage

investment risk.

Note: Federal securities laws prohibit a participant

from directing investments into or out of the

Company Common Stock Fund if the participant is

in possession of material nonpublic information.

Certain officers subject to Section16 of the

Securities and Exchange Act of 1934 are also

restricted in their ability to direct transactions into or

out of the ESOP Fund.



September 2015 200abSPIOG

Self-Directed Brokerage

Account Overview The Self-Directed Brokerage Account (SDBA) is a

brokerage option that affords more flexibility in

choosing retirement savings investments by

allowing you to invest in most:

stocks listed on the New York Stock Exchange, American Stock Exchange or NASDAQ,

exchange-traded funds (ETFs),

corporate and government bonds, and

mutual funds, including approximately 2,100 No-Transaction-Fee (NTF)1 mutual funds (subject to Plan restrictions).

Brokerage services for SDBAs in the Company

savings plans are provided by TD Ameritrade, Inc.

(TD Ameritrade).

The SDBA investment option is designed for the

experienced investor who wants to independently

and actively manage a portion of his or her savings

plan assets and is willing to accept responsibility for

researching, selecting, monitoring and managing

the investments. If you are confident with the

independent approach to investing and assuming

the additional responsibility of actively managing

and monitoring the investments in your Savings

Plan account, the SDBA may be right for you.

Voya Retirement Advisors Service The Voya Retirement Advisors Service will not

advise you about the suitability of any security or

investment strategy outside the Savings Plan’s

Core Fund or Target Date Fund investment options,

nor can it provide financial, legal or tax advice on

these securities or investment strategies.

1 No-Transaction-Fee (NTF) mutual funds are no-load mutual funds for

which TD Ameritrade does not charge a transaction fee. NTFs, as well as other funds, have other continuing fees and expenses described in the fund’s prospectus.TD Ameritrade receives remuneration from fund companies for record-keeping, shareholder and other administrative services. The amount of remuneration is based in part on the amount of investments in such funds by TD Ameritrade clients. Almost all funds held 90 days or less will be subject to a short-term redemption fee of $49.99. This fee is in addition to any applicable transaction fees or fees described in the fund's prospectus.

Eligibility and Limitations

To participate in the SDBA, you must:

Have a combined balance of at least

$4,000 in your Core Funds and Target Date

Funds and make an initial transfer of at

least $3,000 from your Core Funds or

Target Date Funds.

Pay all trading fees, commissions,

administrative fees, and any other

expenses associated with participating in

the SDBA.

You may make subsequent minimum transfers of

$1,000 from your Core Funds or Target Date

Funds, subject to a maximum of 75% of your total

plan balance. You may only transfer non-Roth

amounts to your non-Roth SDBA and Roth amounts

to your Roth SDBA for Savings Plans that have the

Roth feature.

If you have an account in more than one Savings

Plan and wish to open an SDBA in more than one

Savings Plan, the above limitations apply to each

Savings Plan separately.

Opening an SDBA

To open an SDBA, please follow the steps below:

1. Complete a TD Ameritrade SDBA

application. The application may be

downloaded from the Savings Plan Web

Tool or you may call the Savings Plan

Information Line at 800-444-4015 to

request an SDBA application be mailed to

you. To access the Savings Plan Web Tool,

visit LM People at

https://lmpeople.lmco.com via the Intranet

(https://www.lmpeople.com via the Internet)

> Pay and Benefits > Savings Plan. Or, go

to https://lmco.voya.com. On your Savings

Plan’s page, navigate to Plan Information>

Forms and Documents > Self-Directed

Brokerage Account Application.



2. Indicate the type of account(s) you wish to

open. You may select the check box to

indicate you are applying to open a Roth

SDBA or the check box to indicate you are

applying to open both types of accounts

(Roth and non-Roth). If neither box is

checked, then the account is opened as a

non-Roth account.

3. Return the completed application to TD

Ameritrade by fax or by mail to the address

provided on the application.

4. Once the application is received and

approved, TD Ameritrade will open your

account(s) within two business days and

send you information that includes a

welcome letter, your SDBA account

number(s) and a description of TD

Ameritrade resources to help you place

trades and obtain information about your

account(s). Additionally, you will receive a

Personal Identification Number for each

account under separate cover. After you

use your account number and PIN to

activate your account, you will be asked to

create a User ID and password which you

will use to access your account in the

future. You’ll then be able to transfer money

into your SDBA(s).

Funding Your SDBA

To invest in your SDBA, you must transfer money

from your Core Funds or Target Date Funds.

Transfers may be initiated by accessing the

Savings Plan Web Tool or by calling the Savings

Plan Information Line at 800-444-4015. To access

the Savings Plan Web Tool, visit LM People at

https://lmpeople.lmco.com via the Intranet

(https://www.lmpeople.com via the Internet) > Pay

and Benefits > Savings Plan. Or, go to

https://lmco.ingplans.com. On your Savings Plan’s

page, navigate to Account > Manage Investments >

Fund Transfer.

Note the following transfer restrictions:

After your initial transfer of at least $3,000,

subsequent transfers must be at least

$1,000 and must not exceed 75% of your

total plan balance.

Stable Value Fund must assets must be

transferred to the Core Funds or Target

Date Funds for at least 90 days before they

can be transferred into the Treasury

Inflation-Protected Securities (TIPS) Fund,

the Government Short Term Investment

Fund or the SDBA. Furthermore, Savings

Plan contributions withheld from your

paycheck cannot go directly into the

SDBA(s).

Roth 401(k) contributions, Roth rollovers,

and in-plan Roth conversions may only be

transferred to a Roth SDBA.

Only Savings Plan assets can be

transferred into your SDBA. You may not

contribute any outside assets.

Money Transferred to and from Your SDBA

Money transferred from your Core Funds or Target

Date Funds to your SDBA is invested in the

TD Asset Management TDAM Money Market

Portfolio – Select Class (MMF) until you direct a

trade. Note that Fund transfers completed before 4

p.m. Eastern time will be processed the same

business day, and the funds will generally be

available in the MMF the following business day.

Fund transfers completed at or after 4 p.m. Eastern

time will be processed the next business day, and

the funds will generally be available in the MMF the

second business day thereafter.

When transferring money back to your Plan’s Core

Funds or Target Date Funds, SDBA assets must be

sold, if necessary, before funds can be transferred

to your designated investment options.

The MMF is managed by TD Asset Management

USA Inc., an affiliate of TD Ameritrade. A fund

prospectus will be mailed once an SDBA is

established.



Dividend Reinvestment

Certain securities pay dividends to shareholders on

a quarterly, annual, or one-time basis. Dividends

paid on securities in your SDBA accounts will be

deposited in cash to your SDBA account unless you

enroll in the Dividend Reinvestment Program, a

service provided by TD Ameritrade at no additional

cost to you. Under this program, your dividends will

be automatically reinvested in a number of common

stocks, preferred stocks, and mutual funds. You can

choose from more than 5,000 eligible securities for

dividend reinvestment. You can also choose to

reinvest dividends for all eligible securities or

specify specific eligible securities. Please contact

TD Ameritrade Participant Services at 866-766-

4015 for more information on this program.

SDBA Impact on Loans, Withdrawals and

Distributions (as permitted by your Plan)

Loans and withdrawals cannot be made directly

from assets in your SDBA(s). Balances held in your

SDBA(s) may limit the amounts available for loans

and withdrawals. In order to have these assets

included in amounts available for loans and

withdrawals, you must first sell assets in your

SDBA(s) and transfer money into your Core Funds

or Target Date Funds to be included in available

amounts for loans and withdrawals. See

“Transferring Money from Your SDBA(s) into Your

Core Funds or Target Date Funds” below for

instructions.

Distributions cannot be processed if you have

assets in your SDBA(s). Prior to requesting an

account distribution, you must first sell all of the

assets in your SDBA(s) and transfer all of the

proceeds into your Core Funds or Target Date

Funds. Following this transfer, your account

balance will be made available for distribution

subject to the terms of your Savings Plan.

Transferring Money from Your SDBA(s) into

Your Core Funds or Target Date Funds

To transfer money from your SDBA(s) into your

Core Funds or Target Date Funds, please follow the

steps below:

1. If necessary, direct the sale of securities in

your SDBA(s) and wait until the trade

settles (generally two to three business

days) so the proceeds from the sale are

available in the MMF in your SDBA(s). To

access your SDBA, see Accessing Your

SDBA and Placing Trade Orders below.

2. Contact an ING Representative directly via

the Savings Plan Information Line or

access the Savings Plan Web Tool to

initiate a transfer from the MMF in your

SDBA to the Core Funds or Target Date

Funds.

3. Transfers will be reflected in your Core

Fund or Target Date Fund balances at the

beginning of the next business day. Note

that Fund transfers completed before 4

p.m. Eastern time will be processed the

same business day, and the proceeds will

generally be available in your account the

following business day. Fund transfers

completed at or after 4 p.m. Eastern time

will be processed the next business day,

and the proceeds will generally be available

in your account on the second business

day thereafter.

Accessing Your SDBA and Placing Trade

Orders

After you have opened and transferred money to

your SDBA, you can access your account and place

trade orders by:

logging on to the TD Ameritrade trading

website. Shortly after establishing your

SDBA(s), you will receive a separate

communication containing the website

address and details about the site as well

as an account number and Personal

Identification Number to be used

exclusively for online trading in your

SDBA(s). In addition to trading, you can

also review your SDBA information and

access valuable market information. Look

for this information in the mail once you

have opened your SDBA(s).



calling the TD Ameritrade Interactive Voice

Response (IVR) phone system at 866-766-

4015, 24 hours a day, 7 days a week. The

system will lead you through the quote and

order process and prompt you to enter

information using your telephone keypad

and voice commands. Use your account

number and PIN described above to access

this system. If you do not have your PIN

handy, a representative will ask certain

security questions in order to confirm your

identity prior to allowing trades via the IVR.

calling TD Ameritrade licensed brokers at

866-766-4015 between the hours of 8:00

a.m. and 7:00 p.m., Monday through

Friday, Eastern time, excluding New York

Stock Exchange holidays. An experienced

licensed broker will assist you with trades,

quotes and market data. TD Ameritrade

brokers do not provide investment

recommendations or advice.

Note: some fees are higher if you execute trades

using IVR or a broker as opposed to the online

website. Please refer to Appendix C for information

on fees.

SDBA Trade Confirmations and Statements

Each time you place a trade, TD Ameritrade

provides you with an official trade confirmation via

your choice of email or mail. Additionally, you will

receive a brokerage statement for any month in

which there is trading activity.

You will also receive fund prospectuses and semi-

annual and annual reports for the investments in

your SDBA(s).

The market value of your SDBA(s) will be reflected

on your Savings Plan statement. Your account

balances, when viewed on the Savings Plan Web

Tool, will include the SDBAs among your selected

investment options.

SDBA Fee and Expense Information

Each security you purchase or sell in your SDBA(s)

is a separate transaction. You will be charged

commissions and fees as indicated on Appendix C:

Fee and Expense Information – Self-Directed

Brokerage Account (SDBA).

In addition, your total savings plan balance is

subject to administrative expenses as disclosed in

Appendix C (Fee and Expense Information). Refer

to Appendix C specific to each savings plan in

which you are a participant. These expenses are

charged daily to each of your investment options on

a pro-rata basis; however, the administrative

expenses attributable to your SDBA(s) will be

charged monthly to your Core Fund and Target

Date Fund balances on a pro-rata basis as a

reduction in applicable units owned.

A portion of the revenue generated from the SDBA

option may, through revenue sharing payments, be

used to reduce administrative expenses

proportionally among all Savings Plans.

TD Ameritrade and TD Asset Management USA are affiliated

through their respective parent companies.

Brokerage services provided by TD Ameritrade, Inc., member

FINRA/SIPC.

TD Ameritrade is a trademark jointly owned by TD Ameritrade IP

Company, Inc. and The Toronto-Dominion Bank.

An investment in the TD Asset Management TDAM

Money Market Portfolio – Select Class is not

insured or guaranteed by the Federal Deposit

Insurance Corporation or any other government

agency. Although the fund seeks to preserve the

value of your investment at $1.00 per share, it is

possible to lose money by investing in the fund.

Carefully consider the fund’s investment objectives,

risks, charges and expenses before investing. To

obtain a prospectus or summary prospectus which

contains this and other important information, call

TD Ameritrade at 866-766-4015. Read carefully

before investing.


Appendix A

Average Annual Rates of Return as of December 31, 2016

The percentages shown in the table below represent the appreciation or depreciation for each investment option during the periods indicated. Returns included for the Core Funds and Target Date Funds are net of certain management and administrative expenses and do not necessarily reflect the appreciation or depreciation of an individual participant's account. The growth of each participant's account may vary due to participant transactions such as contributions, fund transfers, withdrawals, etc.

Comparative benchmark indices are included for reference only and do not impact participant account balances. The benchmark indices do not include any expenses.

Past performance does not guarantee how the investment option will perform in the future. Current performance may be lower or higher than the performance data quoted.

Average Annual Rates of Return 1

Core Funds

1 Year

3 Years

5 Years

10 Years

Since

Inception

Inception

Date

Government Short Term Investment Fund 0.30% 0.11% 0.08% N/A 0.07% 5/3/2010

Bank of America Merrill Lynch 3 mth U.S. T-Bill Index 0.33% 0.14% 0.12% N/A 0.12%

Stable Value Fund 1.66% 1.44% 1.34% 2.13% 3.33% 4/1/1995

iMoneyNet MF Avg/All Taxable Index 0.13% 0.05% 0.04% 0.71% 2.29%

Treasury Inflation-Protected Securities (TIPS) Fund 5.05% 2.49% 0.88% N/A 3.16% 5/3/2010

Bloomberg Barclays U.S. Government Inflation-Linked Bond Index 5.10% 2.56% 0.98% N/A 3.28%

Broad Market Bond Index Fund 2.50% 2.99% 2.14% 4.24% 4.65% 4/1/2001

Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 3.03% 2.23% 4.34% 4.70%

S&P 500® Indexed Equity Fund 11.94% 8.83% 14.62% 6.93% 9.15% 4/1/1995

S&P 500® Index 11.96% 8.87% 14.66% 6.95% 9.19%

U.S. Equity Fund 9.71% 6.91% N/A N/A 7.59% 12/2/2013

Russell® 3000 Value Index 12.74% 8.43% N/A N/A 9.11%

Small / Mid-Cap Indexed Equity Fund 16.52% 6.49% 14.55% 7.79% 8.99% 4/1/2001

Russell® Small Cap Completeness Index 16.59% 6.55% 14.61% 7.80% 8.86%

Global Equity Fund 3.64% 3.98% N/A N/A 4.57% 12/2/2013

MSCI All Country World (ACWI) Investable Market Index (IMI) Net 8.36% 3.25% N/A N/A 3.74%

International Developed Markets Equity Fund 3.21% -1.03% N/A N/A -0.34% 12/2/2013

MSCI World ex USA Investable Market Index (IMI) Net 2.95% -1.20% N/A N/A -0.45%

MSCI EAFE Indexed Equity Fund 1.86% -1.40% 6.75% 0.91% 5.01% 1/1/2004

MSCI EAFE Index 1.00% -1.60% 6.53% 0.75% 4.88%

Global Real Estate Fund 2.23% 4.88% 8.86% N/A 6.88% 5/3/2010

FTSE EPRA/NAREIT Dev Net TRI USD 4.06% 5.90% 9.48% N/A 7.85%

Emerging Markets Indexed Equity Fund 10.91% -2.79% 1.08% N/A -0.17% 5/3/2010

MSCI Emerging Markets Index 11.19% -2.55% 1.28% N/A 0.12%

High Yield Bond Fund 13.24% 3.68% N/A N/A 3.71% 12/2/2013

BofA Merrill Lynch U.S. High Yield Master II Constrained Index 17.49% 4.73% N/A N/A 4.79%

Commodities Fund 11.35% -11.65% -9.53% N/A -6.40% 5/3/2010

Bloomberg Commodity Index Total Return 11.77% -11.26% -8.95% N/A -6.17%

Company Common Stock Fund 2 18.20% 22.33% 29.62% 13.93% 13.01% 4/1/1995

ESOP Fund – Salaried (SSP Only) 2 18.21% 22.36% 29.66% 13.94% 11.26% 1/1/1997

ESOP Fund – Hourly (BBP and HSP Only) 2 18.21% 22.32% 29.56% 13.92% 15.13% 10/1/1999


Average Annual Rates of Return (continued)

Average Annual Rates of Return 1

Target Date Funds

1 Year

3 Years

5

Years

10

Years

Since

Inception

Inception

Date

Target Date Fund 2005 5.26% 2.60% 4.55% N/A 3.06% 6/2/2008

Target Date 2005 Blended Index 3 4.77% 2.40% 4.27% N/A 2.75%











Target Date Fund 2035- 8.53% 2.61% 7.80% N/A 2.59% 6/2/2008





Target Date 2045 Blended Index3 8.07% 2.67% 8.15% N/A 2.92%


Target Date 2050 Blended Index3 8.07% 2.67% 8.16% N/A 2.93%


Target Date 2055 Blended Index 3 8.07% 2.67% 8.17% N/A 6.41% Target Date Fund 2060 8.50% N/A N/A N/A 3.08% 1/2/2015

Target Date 2060 Blended Index 3 8.07% N/A N/A N/A 2.79% Notes:

1 Returns have been reduced by the Fund’s total expenses. The returns are annualized rates of return ending December 31, 2016. The performance is shown for the stated time period only; due to market volatility, each account’s performance may be different. The returns shown assume the reinvestment of income and/or the reinvestment of dividends and other income.

2

Returns for the Company Common Stock Fund and the ESOP Fund include the effects of dividends and changes in price.

3 The benchmarks for the Target Date Funds are customized blends of representative indices for each asset class. The benchmark returns are calculated by weighting the monthly index returns of each asset class by each Fund's target allocation. Target allocations rebalance quarterly in accordance with each Fund's Glide Path. The following benchmarks are currently used to represent the Target Date Funds’ asset classes when calculating the blended benchmark:

Asset Classes in the Target Date Funds Benchmarks

U.S. Large Cap Stocks Russell®

1000 Index

U.S. Small / Mid-Cap Stocks Russell®

2000 Index

Non-U.S. Stocks MSCI EAFE Index

Emerging Markets Stocks MSCI Emerging Markets Index

Commodities Bloomberg Commodity Index Total Return

Direct Global Real Estate/REIT Securities FTSE EPRA/NAREIT Developed Real Estate Index

Balanced Risk Allocation CPI (Consumer Price Index) + 3%

High Yield Bonds BofA Merrill Lynch U.S. High Yield Master II Constrained Index

Emerging Markets Bonds JPMorgan EMBI Global Diversified Index

U.S. Core Bonds Bloomberg Barclays U.S. Aggregate Bond Index

Inflation-Protected Bonds Bloomberg Barclays U.S. Government Inflation-Linked Bond Index

Stable Value Fund iMoneyNet MF Avg/All Taxable

S&P 500®

is a registered trademark of The McGraw-Hill Companies, Inc.

Russell®

is a registered trademark of Russell Investments.


Appendix B

Annual Rates of Return as of December 31, 2016

The percentages shown in the table below represent the appreciation or depreciation for each investment option during the periods indicated. Returns included for the Core Funds and Target Date Funds are net of certain management and administrative expenses and do not necessarily reflect the appreciation or depreciation of an individual participant's account. The growth of each participant's account may vary due to participant transactions such as contributions, fund transfers, withdrawals, etc. Comparative benchmark indices are included for reference only and do not impact participant account balances. The benchmark indices do not include any expenses. Past performance does not guarantee how the investment option will perform in the future. Current performance may be lower or higher than the performance data quoted.

Annual Rates of Return 1

Inception

Core Funds 2016 2015 2014 2013 2012 2011 Date

Government Short Term Investment Fund 0.30% 0.04% 0.00% 0.03% 0.03% 0.01% 5/3/2010

Bank of America Merrill Lynch 3 mth U.S. T-Bill Index 0.33% 0.05% 0.03% 0.07% 0.11% 0.10%

Stable Value Fund 1.66% 1.50% 1.18% 1.10% 1.28% 1.90% 4/1/1995

iMoneyNet MF Avg/All Taxable Index 0.13% 0.02% 0.01% 0.02% 0.03% 0.02%

Treasury Inflation-Protected Securities (TIPS) Fund 5.05% -1.74% 4.31% -9.40% 7.08% 13.81% 5/3/2010

Bloomberg Barclays U.S. Government Inflation-Linked Bond Index 5.10% -1.72% 4.43% -9.26% 7.26% 13.98%

Broad Market Bond Index Fund 2.50% 0.53% 6.02% -2.32% 4.16% 7.91% 4/1/2001

Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 0.55% 5.97% -2.02% 4.21% 7.84%

S&P 500® Indexed Equity Fund 11.94% 1.34% 13.63% 32.37% 15.96% 2.05% 4/1/1995

S&P 500® Index 11.96% 1.38% 13.69% 32.39% 16.00% 2.11%

U.S. Equity Fund 2 9.71% 0.00% 11.36% 2.57% N/A N/A 12/2/2013

Russell® 3000 Value Index 2 12.74% 0.48% 12.56% 2.64% N/A N/A

Small / Mid-Cap Indexed Equity Fund 16.52% -3.49% 7.40% 38.38% 18.01% -3.85% 4/1/2001

Russell® Small Cap Completeness Index 16.59% -3.41% 7.40% 38.50% 18.05% -3.92%

Global Equity Fund 2 3.64% 4.77% 3.52% 2.10% N/A N/A 12/2/2013

MSCI All Country World (ACWI) Investable Market Index (IMI) Net 2 8.36% -2.19% 3.84% 1.77% N/A N/A

International Developed Markets Equity Fund 2 3.21% -1.81% -4.34% 2.06% N/A N/A 12/2/2013

MSCI World ex USA Investable Market Index (IMI) Net 2 2.95% -1.95% -4.45% 2.26% N/A N/A

MSCI EAFE Indexed Equity Fund 1.86% -0.51% -5.40% 21.91% 18.59% -12.07% 1/1/2004

MSCI EAFE Index 1.00% -0.81% -4.90% 22.78% 17.32% -12.14%

Global Real Estate Fund 2.23% -1.15% 14.16% 3.77% 27.69% -7.44% 5/3/2010

FTSE EPRA/NAREIT Dev Net TRI USD 4.06% -0.79% 15.02% 3.67% 27.73% -6.46%

Emerging Markets Indexed Equity Fund 10.91% -15.08% -2.46% -2.71% 18.03% -18.81% 5/3/2010

MSCI Emerging Markets Index 11.19% -14.92% -2.19% -2.60% 18.22% -18.42%

High Yield Bond Fund 2 13.24% -3.62% 2.13% 0.37% N/A N/A 12/2/2013

BofA Merrill Lynch U.S. High Yield Master II Constrained Index 2 17.49% -4.61% 2.51% 0.53% N/A N/A

Commodities Fund 11.35% -25.12% -17.31% -8.64% -3.78% -11.61% 5/3/2010

Bloomberg Commodity Index Total Return 11.77% -24.66% -17.01% -9.52% -1.06% -13.32%

Company Common Stock Fund 3 18.20% 16.03% 33.49% 67.52% 19.30% 20.43% 4/1/1995

ESOP Fund – Salaried (SSP Only) 3 18.21% 16.08% 33.53% 67.65% 19.31% 20.43% 1/1/1997

ESOP Fund – Hourly (BBP and HSP Only) 3 18.21% 16.03% 33.46% 67.29% 19.24% 20.37% 10/1/1999


Annual Rates of Return (continued)

Annual Rates of Return 1

Inception

Target Date Funds 2016 2015 2014 2013 2012 2011 Date

Target Date Fund 2005 5.26% -1.29% 3.96% 4.80% 10.35% 1.14% 6/2/2008

Target Date 2005 Blended Index 4 4.77% -0.94% 3.45% 4.66% 9.65% 0.95%

Target Date Fund 2010 5.93% -1.76% 3.82% 5.74% 10.73% 0.88% 6/2/2008

Target Date 2010 Blended Index 4 5.44% -1.17% 3.30% 5.71% 10.07% 0.71%

Target Date Fund 2015 6.51% -2.17% 3.72% 7.26% 11.48% -0.15% 6/2/2008

Target Date 2015 Blended Index 4 6.04% -1.40% 3.21% 7.33% 10.90% -0.27%

Target Date Fund 2020 7.06% -2.46% 3.65% 9.30% 12.52% -1.45% 6/2/2008


Target Date Fund 2025 7.56% -2.78% 3.57% 11.60% 13.65% -3.19% 6/2/2008


Target Date Fund 2030 8.09% -3.19% 3.31% 14.29% 14.90% -5.00% 6/2/2008


Target Date Fund 2035 8.53% -3.58% 3.23% 16.44% 15.73% -6.51% 6/2/2008


Target Date Fund 2040 8.52% -3.76% 3.02% 17.27% 16.06% -6.93% 6/2/2008


Target Date Fund 2045 8.50% -3.79% 3.02% 17.35% 16.18% -6.91% 6/2/2008


Target Date Fund 2050 8.50% -3.79% 3.02% 17.38% 16.24% -6.95% 6/2/2008


Target Date Fund 2055 8.50% -3.79% 3.02% 17.35% 16.27% -6.97% 1/4/2010


Target Date Fund 2060 5 8.50% -3.39% N/A N/A N/A N/A 1/2/2015

Target Date 2060 Blended Index 4,5 8.07% -1.72% N/A N/A N/A N/A

Notes:

1 Returns have been reduced by the Fund’s total expenses. The returns shown assume the reinvestment of income and/or the reinvestment of dividends and other

income. 2 The 2013 returns for the High Yield Bond Fund, U.S. Equity Fund, Global Equity Fund and International Developed Markets Equity Fund (Inception Date

12/01/2013) and the respective benchmarks cover the period 12/1/2013 – 12/31/2013. 3 Returns for the Company Common Stock Fund include the effects of dividends and changes in price. 4 The benchmarks for the Target Date Funds are customized blends of representative indices for each asset class. The benchmark returns are calculated by

weighting the monthly index returns of each asset class by each Fund's target allocation. Target allocations rebalance quarterly in accordance with each Fund's Glide Path. The following benchmarks are currently used to represent the Target Date Funds’ asset classes when calculating the blended benchmark:

Asset Classes in the Target Date Funds Benchmarks

U.S. Large Cap Stocks Russell® 1000 Index

U.S. Small / Mid-Cap Stocks Russell® 2000 Index

Non-U.S. Stocks MSCI EAFE Index

Emerging Markets Stocks MSCI Emerging Markets Index

Commodities Bloomberg Commodity Total Return Index

Direct Global Real Estate/REIT Securities FTSE EPRA/NAREIT Developed Real Estate Index

Balanced Risk Allocation CPI (Consumer Price Index) + 3%

High Yield Bonds BofA Merrill Lynch U.S. High Yield Master II Constrained Index

Emerging Markets Bonds JPMorgan EMBI Global Diversified Index

U.S. Core Bonds Bloomberg Barclays U.S. Aggregate Bond Index

Inflation-Protected Bonds Bloomberg Barclays U.S. Government Inflation-Linked Bond Index

Stable Value Fund iMoneyNet MF Avg/All Taxable


Russell® is a registered trademark of Russell Investments.

5 The 2015 return for Target Date Fund 2060 (Inception Date 1/2/2015) and the respective benchmark covers the period 1/2/2015 – 12/31/2015.


March 2017 200ajSPIOG

Appendix C - SSP

Lockheed Martin Corporation Salaried Savings Plan

Fee and Expense Information – Core Funds and Target Date Funds

as of March 1, 2017

Fund returns are reduced by investment management fees and administrative expenses. The following table

presents the approximate expected range of annual investment management fees, annual administrative

expenses and total annual expenses as a percentage of fund assets for the Core Funds and Target Date Funds

in the savings plan.

Annual

Inv. Mgmt. Fees Annual Admin Expenses Total Annual Expenses

Range

From

Approximately

Range

From

Approximately

Expected

To

Average

Range

From

Approximately

Expected

To

Average

Government Short Term Investment Fund 0.02% to 0.03% 0.03% to 0.08% 0.05% 0.05% to 0.11% 0.07% to 0.08%

Stable Value Fund 0.15% to 0.35% 0.03% to 0.08% 0.05% 0.18% to 0.43% 0.20% to 0.40%

Treasury Inflation-Protected Securities (TIPS) Fund

0.02% to 0.02% 0.03% to 0.08% 0.05% 0.05% to 0.10% 0.07% to 0.07%

Broad Market Bond Index Fund 0.03% to 0.03% 0.03% to 0.08% 0.05% 0.06% to 0.11% 0.08% to 0.08%

S&P 500® Indexed Equity Fund 0.02% to 0.02% 0.03% to 0.08% 0.05% 0.05% to 0.10% 0.07% to 0.07%

U.S. Equity Fund 0.10% to 0.90% 0.03% to 0.08% 0.05% 0.13% to 0.98% 0.15% to 0.95%

Small / Mid-Cap Indexed Equity Fund 0.04% to 0.04% 0.03% to 0.08% 0.05% 0.07% to 0.12% 0.09% to 0.09%

Global Equity Fund 0.20% to 1.05% 0.03% to 0.08% 0.05% 0.23% to 1.13% 0.25% to 1.10%

International Developed Markets Equity Fund 0.20% to 1.05% 0.03% to 0.08% 0.05% 0.23% to 1.13% 0.25% to 1.10%

MSCI EAFE Indexed Equity Fund 0.08% to 0.08% 0.03% to 0.08% 0.05% 0.11% to 0.16% 0.13% to 0.13%

Global Real Estate Fund 0.50% to 1.05% 0.03% to 0.08% 0.05% 0.53% to 1.13% 0.55% to 1.10%

Emerging Markets Indexed Equity Fund 0.14% to 0.14% 0.03% to 0.08% 0.05% 0.17% to 0.22% 0.19% to 0.19%

High Yield Bond Fund 0.25% to 0.70% 0.03% to 0.08% 0.05% 0.28% to 0.78% 0.30% to 0.75%

Commodities Fund 0.01% to 0.15% 0.03% to 0.08% 0.05% 0.04% to 0.23% 0.06% to 0.20%

Company Common Stock Fund 0.02% to 0.02% 0.03% to 0.08% 0.05% 0.05% to 0.10% 0.07% to 0.07%

ESOP Fund 0.02% to 0.02% 0.03% to 0.08% 0.05% 0.05% to 0.10% 0.07% to 0.07%

Target Date Fund 2005 0.16% to 0.51% 0.03% to 0.08% 0.05% 0.19% to 0.59% 0.21% to 0.56%













April 2017 200akSPIOG

Appendix C – SDBA Fees and Expenses SSP/CAP/OSSP/PSP/HSP/BBP/HCAP

Fee and Expense Information - Self-Directed Brokerage Account (SDBA)

As of April 3, 2017

The SDBA is a brokerage option offered in the Savings Plans that affords more flexibility in choosing your retirement savings investments by allowing you to invest in exchange-traded stocks, bonds, and mutual funds. Brokerage services for the Savings Plan’s SDBA are provided by TD Ameritrade, Inc. Investments in the SDBA are subject to the same administrative expenses as all other savings plan assets, as noted in above. In addition, your participation in the SDBA will be subject to the commissions, transaction and service fees as indicated in the following schedule:

Commissions and Transaction Fees Stocks and ETFs1 Price

• Internet orders $4.95

• Interactive Voice Response (IVR) phone system orders $14.99

• Broker-assisted orders $24.99

• Commission-Free ETFs2 No Commission

1 Orders executed in multiple lots on the same trading day will be charged a single commission. When an order is partially executed over multiple trading days, the order is subject to a separate commission charge for each trading day.

2 ETFs eligible for commission-free trading must be held at least 30 days. If you sell an eligible ETF within 30 days of it being purchased commission-free, a short-term trading fee will apply.

Mutual Funds Price

• No Load $9.95

• Load No Fee3

• No-Transaction-Fee (NTF) No Fee4 3 The Fund Family will charge fees as detailed in the fund prospectus.

4 No-Transaction-Fee (NTF) mutual funds are no-load mutual funds for which TD Ameritrade does not charge a transaction fee. NTFs, as well as other funds, have other continuing fees and expenses described in the fund’s prospectus. TD Ameritrade receives remuneration from fund companies for record-keeping, shareholder and other administrative services. The amount of remuneration is based in part on the amount of investments in such funds by TD Ameritrade clients. Almost all funds held 90 days or less will be subject to a short-term redemption fee of $49.99. This fee is in addition to any applicable transaction fees or fees described in the fund's prospectus

Fixed Income Investments5 • All buy orders for bonds are subject to a five bond ($5,000 par value) minimum. • Online CD buy orders are subject to a two CD ($2,000 par value) minimum.

5 TD Ameritrade may act as principal on any fixed income transaction. When acting as principal, TD Ameritrade will add a markup to any purchase and subtract a markdown from every sale. This markup or markdown will be included in the price quoted to you.

Service Fees6

Reorganization Fees

Deposit7 $25

Mandatory8 $20

Non-mandatory and tender offers9 $30

Withdrawal from tender offer10 $10


April 2017 200akSPIOG

Fee and Expense Information - Self-Directed Brokerage Account (SDBA)

As of April 3, 2017

Service Fees6 (continued)

Duplicate Statements and Confirmations $5 per copy (no charge for electronic documents)

Research Fee11 $60 per hour

6 All service fees are subject to change. TD Ameritrade reserves the right to pass through Regulatory Fees, foreign transaction taxes, and other fees to client accounts, which may be assessed under various U.S. regulations or imposed by foreign governments. Fees may include any of the following: a sales fee on certain sell transactions (assessed at a rate consistent with Section 31 of the Securities and Exchange Act of 1934) and foreign transaction taxes and fees, among other charges.

7 Applies when a security has gone through a mandatory reorganization before the certificate is deposited into an account.

8 Applies when a security has gone through a mandatory reorganization for all shares held in an account, including those pending trade settlement, on the effective date of the reorganization.

9

Applies when a participant chooses to participate in a non-mandatory reorganization offer.

10

Applies when a participant chooses to withdraw from a non-mandatory reorganization offer.

11

Research is conducted subsequent to specific and usually disputed account activities.

A portion of the revenue generated from the SDBA option may, through revenue sharing payments, be used to reduce administrative expenses proportionally among all Savings Plans.

The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings. There are many factors in addition to fees and expenses that you should consider when you decide to invest in a savings plan option. For example, you may also want to consider whether an investment in a particular option, along with your other investments, will help you achieve your financial and retirement goals. Also, note that each investment option offered has various risks, such as interest rate risk and market and credit risk. You may also want to consider your number of years before retirement and your own level of investment knowledge. There is no guarantee that a particular fund’s objective will be met.

Personal Plan Preview

Online Advice Professional Management

To access the Savings Plan Web Tool via the Intranet, visit LMPeople at https://lmpeople.lmco.com > Pay and Benefits > Savings Plan > Voya Retirement Advisors.

Via the Internet, go to https://www.lmpeople.com or https://lmco.voya.com and click on “Voya Retirement Advisors” link on the top of the page or call a VRA Investment Advisor Representative at 1-800-444-4015.

No additional cost

feel comfortable making investment decisions?

want to build your retirement plan yourself, on the Web?

have other investments to consider, such as an IRA, or a prior 401(k)?

want an investment strategy that covers savings, investing, and retirement income?

want to speak with an Investment Advisor?

want quarterly reports to keep you informed?

want automatic updates to keep you on target and keep you informed?

want ongoing monitoring of your account and automatic periodic adjustments?

Are there fees?

Do you…

Get started today:

The maximum program fee is $3.34 for every $10,000 in your account. See back for more details

Savings Plan Investment Help from Voya Retirement Advisors, LLC (VRA) Choose the service that’s right for you

PORTION OF ACCOUNT ANNUAL RATE MONTHLY AMOUNT*

$0.00 - $50,000.00 0.40% $3.34 per $10,000

$50,000.01 - $100,000.00 0.30% $2.50 per $10,000

$100,000.01 - $150,000.00 0.20% $1.67 per $10,000

$150,000 + 0.10% $0.83 per $10,000

We

do t

he w

ork

Team up with an investment professional— Professional Management

You

do

the

wor

kDo it yourself— Online Advice

powered by Financial Engines

TARGET DATE FUNDS As a reminder, the Lockheed Martin Savings Plan continues to offer the Lockheed Martin Target Date Funds. These funds have been designed for those who want a simple and effective option that leaves most ongoing investment decisions to investment professionals. Target Date Funds are built upon a set of assumptions which may or may not be consistent with your circumstances. In addition to assumptions about future asset class returns, the Target Date Fund that fits your expected retirement date, a different Target Date Fund or a Mix and Monitor strategy may be more appropriate for you.

Advisory services are offered through Voya Retirement Advisors, LLC, a member of the Voya family of companies. Advisory services offered through Voya Retirement Advisors are powered by Financial Engines Advisory L.L.C.

Advisory Services provided by Voya Retirement Advisors, LLC (VRA). For more information, please read the Voya Retirement Advisors Disclosure Statement, Advisory Services Agreement and your plan’s Fact Sheet. These documents may be viewed online by accessing the advisory services link(s) through your plan’s web site at https://lmco.voya.com. You may also request these from a VRA Investment Advisor Representative by calling your plan’s information line at 1-800-444-4015. Financial Engines Advisors L.L.C. acts as a sub-advisor for Voya Retirement Advisors, LLC. Financial Engines Advisors L.L.C. (FEA) is a federally registered investment advisor and wholly owned subsidiary of Financial Engines, Inc. Neither VRA nor FEA provides tax or legal advice. If you need tax advice, consult your accountant or if you need legal advice consult your lawyer. Neither Voya Retirement Advisors nor Financial Engines Advisors can guarantee results and past performance is no guarantee of future results. Financial Engines® is a registered trademark of Financial Engines, Inc. All other marks are the exclusive property of their respective owners.

* Financial Engines Advisors L.L.C., is a federally registered investment advisor and wholly-owned subsidiary of Financial Engines, Inc. Future results are not guaranteed by Financial Engines or any other party. Professional management fees are charged in the manner and frequency detailed in the Program Terms and Conditions.

©2015 Financial Engines, Inc. All rights reserved. Used with permission.

CPY14452 VOY-LM-I-INR-ACT-081915

Professional Management fees are no more than 0.40 percent of your account balance per year. That’s about $3.34 per month for each $10,000 in your account. Discounts apply for larger balances.

Professional Management fees:

Risk

Age

Savings

You use our online tools to build your strategy.

You get advice on a mix of funds that can include other accounts you tell us about.

You can log in anytime to see if you’re on track.

You request the transactions for your account.

AVG PERFORMANCE

POOR PERFORMANCE

POTENTIAL LOSS

EXAMPLE ONLY EXAMPLE ONLY

10.4% or more

You can get technical support by phone.

You can sign up for e-mail Retirement Updates.

Emerging Markets Fund 17%

Small Cap Growth 58%

Intermediate Bonds 25%

$26,800/yr

Forecast$43,000

per year

We send a personalized plan to you.

We put your plan into action.

We routinely monitor your account and rebalance as needed.

We can consider assets outside your account.

We have investment advisor representatives you can talk to.

We keep you informed with quarterly Retirement Updates.

Personal Plan Preview

Summary Plan Description

Lockheed Martin Corporation Salaried Savings Plan

Effective January 1, 2016

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

i

Important This booklet does not create a contract of employment between Lockheed Martin Corporation or its subsidiaries (the “Company”) and any employee. Nothing in this booklet prevents the Company from terminating or changing the terms of any employee’s employment. This Plan is expected to be continued indefinitely. However, the Company, by action of the Board of Directors or its authorized delegate, reserves the right to amend, suspend or terminate the Plan at any time. Any amendment, suspension or termination will be made by an instrument signed by the Company. The Plan’s terms are set forth in the official plan document and cannot be modified by the contents of this Summary Plan Description or other written or oral statements to you from Benefit Administrators or other personnel. If there is a conflict, the terms as set forth in the official plan document govern.

About the Plan The Lockheed Martin Corporation Salaried Savings Plan ("SSP" or "the Plan") is a retirement savings plan for employees intended to be qualified under the Internal Revenue Code. The Plan helps you meet your financial goals by making it easier to save. You decide how to invest your account, choosing from a range of investment options with different objectives and potentials for investment return. It is never too soon to start thinking about the future. While Social Security and personal savings provide some income during retirement, it is generally not enough to do the things we would really like to do—travel, spend time with friends and family or start a business. Participating in the Plan can help you meet your retirement income needs, whatever they may be. This booklet, along with the brochure titled Lockheed Martin Savings Plans Investment Options Guide (Investment Options Guide) is the Summary Plan Description (SPD) for the Lockheed Martin Corporation Salaried Savings Plan as of January 1, 2016. Whenever the term “SSP” or “the Plan” is used in this booklet, it refers to this Plan. This booklet describes the main features of the Plan, while the Investment Options Guide contains important information about the investment options available to you. Another document, “Special Features of the Lockheed Martin Corporation Salaried Savings Plan,” (Special Features Insert) describes provisions of the Plan which apply to you. You may obtain the Special Features Insert applicable to you and the SPD by accessing the Savings Plan Web Tool or by calling the Savings Plan Information Line. Certain terms used in this booklet are defined in the “Definitions” section at the end of this document.

Sikorsky Participants Employees of Sikorsky Aircraft Corporation should review their Special Features Insert for Plan provisions that may differ from those described in the body of this SPD.

Table of Contents

Access to Plan Information.......................................................................................................... 1

Plan Highlights ............................................................................................................................ 2

Participating in the Plan .............................................................................................................. 3

Contributing to the 401(k) Feature of the Plan ............................................................................. 7

Military Leave ............................................................................................................................ 13

Investing in the Plan .................................................................................................................. 14

Changing Your Investment Elections ........................................................................................ 20

Loans ........................................................................................................................................ 28

In-Plan Roth Conversions ......................................................................................................... 35

Withdrawals While Actively Employed ....................................................................................... 38

Distributions/Payments After Your Employment Ends ............................................................... 46

Taxation of Distributions and Withdrawals ................................................................................. 52

Special Tax Notice Regarding Payments from the Plan ............................................................ 54

Survivor Benefits ....................................................................................................................... 65

Privacy Statement ..................................................................................................................... 65

Administrative Information ......................................................................................................... 66

Definitions ................................................................................................................................. 72 Participating Business Units

Appendix A – 401(k) Feature with Company Matching Contributions ............................ 75

Appendix B – LM Company Contributions ..................................................................... 76

1

Access to Plan Information Managing your Plan account is easy and convenient when you use one of the tools Lockheed Martin Corporation provides. The following tools are available 24 hours a day, seven days a week (except for occasional system maintenance periods):

Access the Savings Plan Web Tool –via LM People at https://lmpeople.lmco.com via the Intranet (https://www.lmpeople.com via the Internet) > Pay and Benefits > Savings Plan. Or, go directly to https://lmco.voya.com.

Call the Savings Plan Information Line: – Toll-free within the U.S.: 800-444-4015 – From outside the U.S.: 904-791-2020 – For TDD communication services for the hearing impaired: 800-579-5708

Customer service representatives are available Monday through Friday 8 a.m. to 8 p.m. Eastern time, except on New York Stock Exchange holidays, by calling the Savings Plan Information Line. Savings Plan Password Your savings plan password is essential to protect your personal savings information. It is your responsibility to keep your savings plan password secure. You should protect your savings plan password as you would any password or PIN that permits access to your financial and personal data. Consider changing your password periodically.

2

Plan Highlights Here are some of the highlights of the Plan:

The Plan contains a 401(k) Feature that allows you to set aside a portion of your weekly Base Pay on a before-tax and/or after-tax basis through payroll deductions. You may make Before-Tax, Roth 401(k) or After-Tax Contributions - or any combination of the three.

Currently, the Company will provide a Company Matching Contribution equal to 50% of your Basic Contributions, up to 8% of your pay, to a maximum matching contribution of 4% of Base Pay on a weekly basis.

If you are not already a participant, you may be automatically enrolled in the 401(k) Feature of the Plan (unless you opt out). If you are automatically enrolled, 3% of your Base Pay is automatically withheld from your paycheck each week on a before-tax basis and contributed to the Plan. If you do not opt out or change your election percentage, your contribution percentage will automatically increase one percentage point a year, up to the automatic escalation rate maximum of 8% for the plan.

All or a portion of any contributions you make on an after-tax basis may be made as Roth 401(k) Contributions (subject to IRS limits)—which may be free from taxes on those contributions and associated investment earnings when you withdraw them (as long as you meet certain requirements).

If you reach the annual IRS Before-Tax and Roth 401(k) limit, your contributions automatically change to After-Tax Contributions. See the Annual Contribution Limit section for more information.

You may be eligible to receive an additional weekly LM Company Contribution based on your pay regardless of whether you contribute a portion of your weekly Base Pay through the 401(k) Feature of the Plan. You will receive a Special Features Insert containing details regarding the LM Company Contribution if you are eligible to receive this contribution. This contribution is in addition to any Company Matching Contribution you may receive.

You are immediately vested in all contributions to your account, as well as any associated earnings.

You have a diverse assortment of investment options from which to choose.

Money in your account grows tax deferred until you take it out.

You may be able to take a loan or withdrawal from your account.

You can track your investments online.

You can create your own account statements online.

You have access to the Voya Advisory Services, which provides savings and investment advice.

You are not required to take any money out of the Plan after your employment with the Company ends (for any reason other than death or on account of certain corporate transactions) providing that a) your account balance is over $5,000, and b) you are not otherwise required to take a mandatory distribution which typically is not required until you reach age 70-1/2.

3

Participating in the Plan

Plan Eligibility You are immediately eligible to participate in the 401(k) Feature of the Plan (with Company Matching Contributions) if you are:

a nonrepresented salaried employee of a participating business unit (see “Appendix A”) who is regularly scheduled to work at least 20 hours a week, OR

a nonrepresented salaried employee of a participating business unit (see “Appendix A”) who has earned at least 1,000 hours of service in the 12 month period after your date of hire or in any subsequent year OR

a member of a bargaining unit that has adopted the Plan (see “Appendix A”). Your participation in the 401(k) Feature of the Plan is completely voluntary. You must elect to contribute a portion of your weekly Base Pay to the Plan in order to receive Company Matching Contributions. However, the Plan does contain an automatic enrollment feature as described in the Automatic Enrollment section below.

You are immediately eligible to receive LM Company Contributions to the Plan if you are:

a nonrepresented salaried employee of a participating business unit (see “Appendix B”) who is regularly scheduled to work at least 20 hours a week, OR

a nonrepresented salaried employee of a participating business unit (see “Appendix B”) who has earned at least 1,000 hours of service in the 12 month period after your date of hire or in any subsequent year, OR

A member of a bargaining unit that has adopted the Plan (see “Appendix B”). If eligible, you will receive LM Company Contributions regardless of whether you elect to participate in the 401(k) Feature of the Plan. Please see the Special Features Insert for your participating business unit for information on LM Company Contributions.

LM Company Contributions are not part of the 401(k) Feature of the Plan. The term employee includes only those individuals that the Company classifies on its payroll records as employees. Thus, you are not eligible to participate in the Plan if you are a consultant, independent contractor, leased employee, are paid by a third party employer, or otherwise are not classified as an employee by the Company. You are also not eligible to participate in the Plan if you are covered by a collective bargaining agreement that does not provide for participation in the Plan. NOTE: If you transfer from another group or from an employee status that is not eligible to participate in the Plan to one that is eligible, you may enroll in the Plan immediately. Service generally is the time for which you are paid or entitled to be paid while working at the Company. Generally, you begin earning service on your first day of employment.

4

How to Enroll Before you enroll in the 401(k) Feature of the Plan, you will need to decide:

The percent of pay you wish to save; Whether you want to make Before-Tax, Roth 401(k) or After-Tax Contributions—or a combination

of the three; Whether you want to make a Catch-Up Contribution (if eligible); How you want to invest your contributions, Company Matching Contributions, and LM Company

Contributions (if eligible) among the Plan’s investment options; and Who will receive your account balance if you die. (See the Designating Your Beneficiary section

below for important information about designating your Beneficiary.) Once you are eligible, you can enroll immediately by accessing the Savings Plan Web Tool via LM People. If you prefer, you can wait until you receive your enrollment package and password from the Recordkeeper, and then enroll using your Savings Plan Password and your Social Security Number or Employee ID by accessing the Savings Plan Web Tool or calling the Savings Plan Information Line. Your contributions will begin as soon as administratively possible after the Recordkeeper notifies payroll that you have enrolled. If you are eligible to receive LM Company Contributions, such contributions will be made beginning with your first paycheck. Transactions made by Wednesday 4:00 p.m. Eastern time will take effect in the following week’s pay. If you enroll or make changes after Wednesday 4:00 p.m. Eastern time, your elections will not take effect in the following week’s pay, but the week thereafter. You do not need to enroll in the Plan in order to receive LM Company Contributions, but you must decide how you want to invest your contributions and who will receive your account balance if you die.

Automatic Enrollment for 401(k) Feature of the Plan If you are a new hire or rehire, or become eligible to participate as the result of a transfer, you will be automatically enrolled in the 401(k) Feature of the Plan effective 30 days after your date of hire, rehire or transfer into one of the business units that participate in the Plan, unless you choose to opt out. If you automatically are enrolled, 3% of your eligible compensation will be contributed to the Plan on a Before-Tax basis. Unless you designate otherwise, this amount will be invested in the Default Investment Option. If you want to contribute a different amount to the Plan, or if you do not wish to contribute at all, you can opt out of automatic enrollment or change your contribution percentage by accessing the Savings Plan Web Tool or by calling the Savings Plan Information Line. You have 30 days from your date of eligibility to opt out before your contributions will automatically begin. Refund of Automatic Enrollment Contributions If you automatically are enrolled in the 401(k) Feature and decide you would rather not participate, you may request a refund of any contributions made as a result of your automatic enrollment. You must request your refund within 90 days from the date of the first payroll period in which automatic contributions were withheld. Your refund request will apply to all automatic enrollment contributions made since the automatic enrollment started. The automatic enrollment contributions refunded to you will be adjusted for any gains or losses and will be treated as taxable income for the Plan Year. The payment will not be eligible for Rollover and will not be subject to the additional 10% early withdrawal penalty generally incurred for premature distributions from a retirement plan.

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Consequences of Refund of Automatic Enrollment Contributions If you elect to receive a refund of Before-Tax Contributions due to automatic enrollment, your future employee contributions to the Plan will be automatically discontinued. You may restart employee contributions to the Plan at a later date by accessing the Savings Plan Web Tool or by calling the Savings Plan Information Line. If you choose to restart your contributions at a later date, the automatic enrollment contributions made during the year that were refunded will count in the determination of how much you may contribute later in the year, subject to applicable Internal Revenue Code annual limitations. Company Matching Contributions made to refunded automatic enrollment contributions will be forfeited as a result of your refund of contributions request.

Designating Your Beneficiary When you become eligible for the Plan you must designate a Beneficiary so that if you have an account balance when you die, the Plan can distribute your account according to your wishes. To do so, you must complete your Beneficiary designation by selecting Beneficiary Information under Personal Information on the Savings Plan Web Tool. If you participated in any other retirement plan in the Company or any retirement plan of an employer acquired by the Company, your Beneficiary designation for that plan does not cover this Plan. Each savings plan requires a separate Beneficiary designation. You may designate one or more individuals—or an estate or trust—as your Beneficiary(ies), but if you name more than one person, you must indicate the percentage of your account that each person should receive. You also may select a contingent, or secondary, Beneficiary, who will receive your benefit if your primary Beneficiary dies before you do. Different rules apply, depending on your marital status. If you are married:

Your Spouse is your primary beneficiary—unless your Spouse agrees in writing on a Beneficiary Designation paper form that you may designate someone else. His or her signature must be witnessed by a Notary Public. The Beneficiary Designation paper form is available on the Savings Plan Web Tool or by calling the Savings Plan Information Line.

If you do not designate a Beneficiary, your account balance will be paid to your Spouse if you die. Designating a secondary, or contingent, Beneficiary does not require your Spouse’s consent.

If you are not married:

If you do not designate a Beneficiary, your account balance will be paid to your estate. You will receive a Confirmation Statement once you have properly made your Beneficiary designation. Please review your Confirmation Statement and make sure that all of the information is correct. If you submit a Beneficiary Designation paper form, any new or changed Beneficiary designation will not take effect until the Recordkeeper receives your completed Beneficiary Designation form. In order for the Beneficiary designation to be valid, your completed paper form must be received by the Recordkeeper before your death. The Company is required to follow your properly completed and received Beneficiary designation, so it is important for you to keep the information current. You may need to change your Beneficiary designation as your circumstances change—for example, if you get married, divorced, have children, or your Beneficiary dies. It is your responsibility to keep your Beneficiary designation up to date. To confirm the beneficiary information you have on file, access the Savings Plan Web Tool or call the Savings Plan Information Line. Be sure to keep a copy of your Beneficiary designation.

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Re-enrolling in the 401(k) Feature If you decide to stop contributing to the 401(k) Feature of the Plan and later wish to re-enroll, access the Savings Plan Web Tool or call the Savings Plan Information Line. Depending on your situation, you may re-enroll as follows:

If you voluntarily stopped contributing to the Plan and wish to resume contributing, you may re-enroll at any time. Your contributions will resume as soon as administratively possible after payroll is notified that you have re-enrolled.

If you terminated employment with the Company and are rehired, the Company will let the Recordkeeper know that you are eligible. You may re-enroll as soon as you receive your enrollment materials from the Recordkeeper. Payroll deductions will begin as soon as administratively possible after payroll is notified that you have re-enrolled.

NOTE: If you participate in the Plan and transfer to another group or employee status that is also eligible to participate in the Plan, your contributions will continue automatically.

Loss of Eligibility If you continue to work for the Company but transfer to a group or change to an employee status that is not eligible to participate in the Plan, your contributions, Company Matching Contributions and/or LM Company Contributions (if applicable) will stop. Your account will remain in the Plan, you can continue to make investment changes, and you will still be eligible to borrow or withdraw from your account. Your account balance will be payable at termination, retirement, layoff, disability or death. Your transfer does not entitle you to a distribution from your account.

Confirmation Statements You will receive a Confirmation Statement for any transaction you complete through the Savings Plan Web Tool or the Savings Plan Information Line. You must make sure the statement accurately reflects the changes you requested. If there are any problems, or if you have any questions, please call the Savings Plan Information Line. If you are an active employee and have an lmco.com email address on file in your savings plan account, your mail delivery preferences will be set to “Email Notification.” With this setting, you will receive a notification email from [email protected] to inform you whenever a new confirmation notice has been posted to your secure mailbox on the Savings Plan Web Tool. Please note that your mail delivery preferences setting will be applied to all of the accounts that you are able to access via the Savings Plan Web Tool. With your mail delivery preferences set to Email Notification, most confirmation notices will be delivered to you as online PDF documents posted in the secure mailbox that is part of your account on the Savings Plan Web Tool. You will be able to access these documents by selecting the Statements and Documents link at the top of the Savings Plan Web Tool home page. Documents will remain available for you to view or print for 24 months. You can change your preference between online delivery and postal delivery at any time by going to the Mail Preferences page by selecting the User Preferences link at the top of the Savings Plan Web Tool home page.

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Contributing to the 401(k) Feature of the Plan Unless otherwise described in your Special Features Insert, you may save up to 25% of your Base Pay, in any whole percentage—subject to restrictions described below. Some of your contributions—called Basic Contributions—may be matched by the Company. Any additional contributions you elect are referred to as Supplemental (or unmatched) Contributions. Basic and Supplemental Contributions may be made on a before-tax, Roth 401(k) or after-tax basis—or any combination of the three. The Plan allows you to make Basic Contributions (eligible for matching) of up to 8% of eligible plan compensation, and you may also make Supplemental Contributions of up to 17%. Once you make your elections, contributions will continue to be deducted from your pay until you change or end them. If you were automatically enrolled (and did not opt out), a percentage of your weekly Base Pay is automatically withheld from your pay on a before-tax basis, as described below. There are limits on the annual compensation considered for making contributions to the Plan. For 2016, that limit is $265,000. The IRS may adjust this limit from time to time. Important Note Regarding Annual Limits for Newly Hired and Rehired Employees The IRS limits the amount of Before-Tax and Roth 401(k) Savings Plan Contributions you may make during a calendar year (excluding Catch-up Contributions described later in this document). For 2016, the IRS limit on the sum of your Before-Tax and Roth 401(k) Contributions is $18,000. If you have attained age 50, you also may contribute an additional $6,000 (Before-Tax plus Roth) in 2016. If you are a new hire or a rehire, you are responsible for monitoring this limit across all plans of all employers to which you have contributed during the year. If your Before-Tax and/or Roth 401(k) Contributions exceed the limit in any calendar year, you must request a refund of the excess contributions before March 1st of the year following the year in which the excess contributions were made. For example, if your contributions exceed the limit in 2016, you must request a refund before March 1, 2017. There can be no exceptions. Call the Savings Plan Information Line for additional information.

Your Contributions Once you decide how much you wish to save, you must decide whether to save on a before-tax, Roth 401(k) and/or after-tax basis. Generally, Plan contributions will be posted to your account on the Friday following the week they are withheld from your pay. If a holiday occurs on a Friday and, as a result, the Recordkeeper and the New York Stock Exchange are closed, contributions to your account may be posted to the account the following Monday. Before-Tax Contributions Before-Tax Contributions are deducted from your Base Pay before your federal—and in most cases, state and local—income taxes are calculated. You may contribute up to 25% of Base Pay on a before-tax basis, subject to IRS limitations ($18,000 for 2016, plus an additional $6,000 in 2016 if you elect Catch-up Contributions).

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Automatic Escalation If you were automatically enrolled in the Plan, 3% of your weekly Base Pay is automatically withheld from your pay on a before-tax basis and contributed to the Plan. If you do not change your contribution percentage or elect to opt out of the plan, you are subject to auto escalation. This means that your contribution rate is automatically increased by 1 percentage point annually, until your contribution rate reaches the Plan’s automatic escalation rate maximum of 8%. (If you self-enrolled or elected to opt out of automatic enrollment, auto escalation will not apply to you.) To opt out of automatic escalation, you can:

Change your contribution percentage or re-elect your current contribution percentage before the annual opt-out deadline. Your contribution percentage will not be automatically escalated for that year or any future year.

Change your contribution percentage at any time during the year. This acts as an opt-out of auto escalation for future years.

Any increase in your contribution resulting from auto escalation will be taken out of your pay and invested in your Plan account in accordance with your existing investment elections. If you have not chosen an investment option(s) for your current contributions, increases in your contributions resulting from automatic escalation will continue to be invested in the Default Investment Option. You may change your investment elections or opt out of automatic escalation by accessing the Savings Plan Web Tool or calling the Savings Plan Information Line. The Advantages of Before-Tax Savings

Before-Tax Contributions are deducted from your paycheck before your federal income taxes are calculated and are not reported as part of your W-2 earnings for the year. Depending on where you live, state and/or local income taxes also may be deferred.

Before-Tax Contributions make it more affordable to contribute because your take-home pay will be higher than if you contribute the same amount on an After-Tax basis.

You don’t pay taxes on your Before-Tax Contributions until you take money out of the Plan. If you wait until you retire to receive your money, your personal income tax rate may be lower.

Here is an example of the advantages of before-tax savings. Assume you make $65,000 a year and are married, filing jointly. You choose to contribute $5,200 of your pay to the Plan on a before-tax basis. This lowers your taxable income to $59,800. The result is that your income tax bill is lower than it would have been if you had not contributed to the Plan. Here is how the actual current tax savings work out:

With Before-Tax

Contributions Without Before-Tax

Contributions Gross pay $65,000 $65,000 Before-Tax savings $5,200 $0 Pay subject to federal income tax $59,800 $65,000 Federal taxes @15% $8,970 $9,750 Contributing to the Plan reduced current income taxes by $780 NOTE: Under current law, Before-Tax Contributions do not reduce your Social Security tax withholding.

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Roth 401(k) Contributions The Roth 401(k) feature allows After-Tax Contributions to the savings plan with the unique advantage that earnings on your Roth 401(k) Contributions will grow tax free—as long as you keep the contributions and earnings in the Plan for at least five years and do not withdraw them before you reach age 59-½, die or become disabled. With Roth 401(k) Contributions, you do not pay federal income taxes on the contributions or earnings upon withdrawal. Withdrawals and distributions not meeting these requirements are taxable on distribution, and additional penalties may apply. Roth 401(k) Contributions can either replace or complement your regular Before-Tax and After-Tax Contributions and are subject to plan and annual maximum limits set by the IRS. Roth 401(k) Contributions count toward the IRS annual Before-Tax limits ($18,000 for 2016, plus an additional $6,000 in 2016 if you elect age 50 Catch-up Contributions). Catch-up Contributions If you will be age 50 or older by the end of the calendar year, you may be eligible to make additional Before-Tax and/or Roth 401(k) Contributions to the Plan in excess of the annual IRS limit ($18,000 for 2016). These contributions are referred to as “Catch-up Contributions.” To be eligible for Catch-up Contributions, you must turn age 50 or older by the end of the calendar year, and you must meet either the IRS limit on Before-Tax and Roth 401(k) Contributions, the Plan’s limit on contributions, or another IRS-required limit. You can elect or change your Catch-up Contributions at any time during the year in which you are eligible. In 2016, your combined Before-Tax and/or Roth 401(k) Catch-up Contribution can be up to $6,000. NOTE: Catch-up Contributions are not eligible for Company Matching Contributions. To elect to contribute Catch-up Contributions, access the Savings Plan Web Tool or call the Savings Plan Information Line. Your Catch-up Contribution election on file at the beginning of each calendar year will automatically begin effective with the first pay period of the new year. You must access the Savings Plan Web Tool or call the Savings Plan Information Line to change your Catch-up Contribution election. Because the IRS may change the allowable Catch-up Contribution periodically, you may wish to review your Catch-up Contribution election from time to time to comply with any IRS changes. You should elect to contribute Catch-up Contributions only if you are maximizing your Before-Tax Contributions allowed by the Plan or if you expect to reach the IRS annual Before-Tax and Roth 401(k) limit. If, at the end of the year, your regular Before-Tax Contributions plus your Roth 401(k) Contributions have not reached the lesser of the IRS maximum annual Before-Tax limit ($18,000 for 2016) or the Plan’s Before-Tax limit, some or all of your Catch-up Contributions will be reclassified as regular Before-Tax Contributions and/or regular Roth 401(k) Contributions, as appropriate. After-Tax Contributions You also may make After-Tax Contributions. The Company will deduct the percentage you elect after taxes are withheld, so these contributions are reported as part of your W-2 earnings for the year. You may contribute up to 25% of your Base Pay on an after-bax basis, subject to IRS limitations and the Plan limitation of 25% of your Base Pay combined across all three types of contributions (Before-Tax, Roth 401(k) and After-Tax).

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Rollover Contributions You may have participated in a similar savings or other tax-favored retirement plan with a previous employer. If so, you may be able to roll over the account balance into the Plan, either from the prior plan or from an Individual Retirement Account (IRA), even if you are not otherwise participating in the Plan. The Company does not match Rollover Contributions, but you can invest them in any or all of the Plan’s investment options. You decide how you want the funds invested when you transfer the money into the Plan. Access the Savings Plan Web Tool or call the Savings Plan Information Line to obtain the proper forms and instructions required to initiate a Rollover. If you do not complete a Rollover form, your Rollover check from the other plan will be returned to you. Changing Your Contributions You may change or stop your future contributions to the 401(k) Feature of the Plan as often as you wish by accessing the Savings Plan Web Tool or calling the Savings Plan Information Line. Your change will be effective as soon as administratively possible. As noted above, if you are automatically enrolled in the 401(k) Feature of the Plan and decide you would prefer not to participate in the Plan, or want to contribute a smaller or larger percentage of your pay, you may change your election percentage or opt out of the Plan entirely. You may also request a refund of contributions that have been made to the Plan as a result of automatic enrollment, as long you do so within 90 days after the first payroll period when the automatic enrollment took effect. To request a refund, log on to the Savings Plan Web Tool or call the Savings Plan Information Line. If you elect to receive a refund of contributions due to automatic enrollment, your future employee contributions to the Plan will stop, and you will forfeit any Company Matching Contributions (but not any LM Company Contributions) made to your refunded automatic enrollment contributions. You may restart employee contributions at a later date by accessing the Savings Plan Web Tool or by calling the Savings Plan Information Line. If you choose to restart your contributions at a later date, the automatic enrollment contributions made during the year that are included in the refund request will count in the determination of how much you may contribute later in the year, subject to applicable Internal Revenue Code annual limitations.

Company Contributions Company Matching Contributions The Company contributes a match equal to 50% of the first 8% of pay you contribute as Basic Contributions. Company Matching contributions are credited to your account each pay period and are automatically invested in the Employee Stock Ownership Plan (ESOP) Fund. However, you may transfer some or all of these contributions at any time to one or more of the other available funds. Catch-up Contributions (Before-Tax or Roth 401(k)) are not eligible for Company Matching Contributions. Company Matching Contributions and associated earnings (if any) will continue to be tax-deferred while they remain in your account, but may be subject to tax upon withdrawal or distribution.

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LM Company Contributions If you are eligible to receive an LM Company Contribution based on your weekly Base Pay, you will receive a Special Features Insert providing details regarding the amount of the contribution. Such contributions are not loanable, lienable, and are not available for in-service withdrawals or in-plan Roth conversions. If you do not make an investment election for your LM Company Contributions, they will be invested in the Default Investment Option.

Vesting You are always fully vested in the value of your Before-Tax, Roth 401(k), Catch-up and After-Tax Contributions made to the Plan, including any associated investment earnings. In addition, you are immediately vested in the value of applicable Company Matching Contributions, LM Company Contributions and any other Company Contributions made to your account, including any associated investment earnings. Should you leave the Company for any reason, you are entitled to receive your entire account balance.

Timing of Investment of Your Contributions Generally, your contributions (including Company Matching Contributions and LM Company Contributions) and loan repayments will be posted to your account on the Friday night following the week they are withheld from your pay. If a holiday occurs in the week and, as a result, the Recordkeeper and the New York Stock Exchange are closed, instead of posting after closing of the NYSE market on Friday, your contributions, the Company Matching Contributions, LM Company Contributions and loan repayments will be posted to your account the following Monday.

IRS Limits on Contributions Internal Revenue Service (IRS) rules may limit the amount you can save through the Plan. Annual Contribution Limit The annual IRS dollar limit on combined Before-Tax and Roth 401(k) Contributions for 2016 is $18,000. This limit includes all Before-Tax Contributions and Roth 401(k) Contributions you make to any employer-sponsored qualified 401(k) plans (excluding Catch-up Contributions). The limit may change periodically in accordance with federal regulations. This is also referred to as the 402(g) limit in reference to the governing section of the Internal Revenue Code. If your combined Before-Tax and Roth 401(k) Contributions exceed the annual IRS limit ($18,000 in 2016) during the year, the excess will automatically be reclassified as After-Tax Contributions. You do not need to take any action to ensure that your Before-Tax and/or Roth 401(k) Contributions return to your elected percentages at the beginning of the next Plan Year. They will automatically be reset to your elected percentages for the next Plan Year provided that you have not changed them. However, if you make any changes to your Before-Tax, Roth 401(k) and/or After-Tax Contribution percentages after you have reached the annual IRS limit, your previously elected percentages will not be restored at the beginning of the next Plan Year. Instead, the newly elected percentages will remain in effect until you make new elections.

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Annual Compensation Limit The IRS imposes a limit on the annual compensation that can be considered for making contributions to the Plan. For 2016, that limit is $265,000. The IRS may adjust this limit from time to time. This is also referred to as the 401(a)(17) limit in reference to the governing section of the Internal Revenue Code. 415 Limit Section 415(c) of the Internal Revenue Code limits the total annual additions that may be made to all of the Company’s qualified defined contribution retirement plans in any year. Your total annual additions include all employer contributions as well as all employee contributions (with the exception of Catch-up Contributions in plans that permit such contributions). The limit on your total annual additions to all of the Company’s qualified defined contribution retirement plans for 2016 is the lesser of $53,000 or 100% of your annual compensation. NOTE: IRS limits on contributions are subject to change each year and updates are available on the Savings Plan Web Tool. Other Limits for Highly Compensated Employees Contributions of highly compensated employees, as defined by the IRS, must be proportionate to the contributions of other employees. If highly compensated employees benefit from the Plan to a greater extent than allowed by the IRS, they may not be able to save at the full amount they elect. You will be advised if you meet the definition of “highly compensated employee.” If you are considered a highly compensated employee, there are special non-discrimination tests required by federal regulations that may limit your ability to contribute on a Before-Tax, Roth 401(k) and in some cases, After-Tax basis. While the Plan permits you to elect and record contribution levels up to the SSP maximum (a total of 25%), your actual contribution percentages may be subject to reduced limits applicable to highly compensated employees. If this occurs, previously made contributions are handled as described below. Before-Tax Contributions or Roth 401(k) Contributions:

May be re-characterized as Catch-up Contributions (if eligible, subject to IRS limits); May be re-characterized as After-Tax Contributions; or May be returned to you.

After-Tax Contributions:

May be returned to you. Company Matching Contributions:

May be returned to you or forfeited to comply with the limits.

LM Company Contributions: May be returned to you or forfeited to comply with the limits.

In addition, your contribution percentage may be reduced. You will be notified of any action taken. If you are re-designated as a non-highly compensated employee due to changes in the IRS definition of highly compensated employees or changes in your earnings, your elected Before-Tax, Roth 401(k) and After-Tax Contribution percentage(s) will be reset automatically to reflect your original elections.

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Military Leave The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) gives certain reemployment and benefits rights to employees who take a leave of absence to serve in the uniformed services of the United States.

How the Plan Counts Service While on Military Leave If you return to work with the Company within the timeframes specified under USERRA, your period of service in the U.S. uniformed services will count as Service under this Plan. Hours of Service will be credited at the same rate they would have been credited had you remained employed as an employee during that period, determined under rules prescribed by the Plan Administrator.

Missed Contributions While on Leave If you return from a qualified military leave, you may be eligible to make up any missed contributions. You must meet the requirements of USERRA, which include giving notice within certain timeframes to your employer and returning to employment within prescribed time periods. If you have any questions, please call the Savings Plan Information Line. In general, you will have the opportunity to make up any contributions you would have made if you had remained employed during your period of qualified military service. These contributions can be repaid over a period three times the period of military service, but no longer than five years. If your repayment of contributions relates back to years other than the current calendar year, then these contributions will count toward the Internal Revenue Service (IRS) annual defined contribution plan limits for the years to which the repayments relate, rather than toward the current year’s limits. Any Company Matching Contributions will be based on the amount of Basic Contributions that you repay. To request Make-up Contributions, please call the Savings Plan Information Line and speak to a customer service representative. .

If You Receive Differential Pay While on Military Leave Some employees receive Differential Pay from the Company while on a qualified military leave. If you are otherwise eligible to receive an LM Company Contribution and you receive Differential Pay while on military leave, your LM Company Contribution will be calculated using your Base Pay as opposed to your Differential Pay,

Loans and Withdrawals Loans and certain withdrawals are available while you are on military leave. See the “Loans” and “Withdrawals While Actively Employed” sections for more details.

If You Die While Performing Military Service If you die while absent from employment performing qualified military service, your Beneficiary(ies) will be entitled to your account balance.

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Investing in the Plan

Your Investment Earnings Grow Tax-Deferred Not only do you postpone paying taxes on Before-Tax Contributions, Catch-up Contributions, and Company Matching Contributions, but earnings on all contributions to the Plan—After-Tax, Before-Tax, Catch-up, LM Company Contributions, Company Matching Contributions and other contributions—also accumulate on a tax-deferred basis. You do not have to pay taxes on any of your Plan investment earnings until you actually receive the money. Earnings on your Roth 401(k) Contributions (including Roth Rollover and in-plan Roth conversion amounts) may be withdrawn tax-free as long as you are at least age 59-1/2 and your initial Roth 401(k) Contributions have been in the Plan for at least five years.

You Decide How to Invest Plan Contributions Your account balance grows as contributions to the Plan are added to your account. Your account balance also will increase or decrease depending on how your investments perform. You decide where to invest contributions; the Recordkeeper generally will follow your investment instructions (subject to any applicable rules and procedures established from time to time and plan provisions permitting restrictions on investments or investment changes where necessary). You may invest Plan contributions in 5% increments among the Plan’s investment options when you enroll. Company Matching Contributions are automatically invested in the ESOP Fund, but may be immediately transferred into another investment option. Depending on your investment goals, you may select one or more of a variety of investment options. If a contribution is made to your account and you do not have an investment election on file, those contributions will be invested in the Plan’s Default Investment Option. The Plan is meant to constitute a plan described in Section 404(c) of ERISA and Title 29 of the Code of Federal Regulations Section 2550.404c-1 and, therefore, the Company, the Trustee, the Recordkeeper and the fiduciaries of the Plan may be relieved of liability for any losses that are the direct and necessary result of investment instructions you or your Beneficiary may give. The Company does not guarantee the performance of these investment funds and is not liable for any losses you may experience due to investment performance. All investment options may contain cash reserves in order to provide liquidity for daily participant transactions. Such reserves are managed either by the fund managers or by State Street Global Advisors, a division of State Street Bank and Trust Company. With the exception of the Company Common Stock Fund and the ESOP Fund, the investment options may invest for hedging, liquidity or asset allocation purposes in some unleveraged securities that may be considered derivatives. The investment risk associated with these derivatives may differ from that of the investment options. You can review the documents pertaining to your investment options for information on the use of derivatives in each fund.

Plan Expenses Brokerage commissions and related expenses are payable out of the assets of the applicable investment option unless stated otherwise. The Plan also provides that all other Plan operating and administration expenses, including compensation associated with the Trustees, investment managers, administrative service providers, and certain administrative services performed by Company employees, will be paid out of Plan assets. These expenses are charged against assets in the Plan and are stated as a percentage of assets.

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Investment Options There is a range of investment options to choose from, each with different investment objectives. For details about your investment options, refer to the Investment Options Guide which may be updated from time to time by Summaries of Material Modifications. Finding the Right Investment Option(s) for You The investment options that are right for you depend on your goals, retirement timeframe, feelings about risk, and level of knowledge about investing. To properly invest for retirement, you need the flexibility that comes from having a range of choices. As a result, the Plan offers three distinct categories of investment options.

Target Date Funds These funds contain a professionally monitored mix of stocks, bonds and short-term investments. These funds offer you a simple, one-step approach to fund selection. Each Target Date Fund has an investment strategy designed to be appropriate for particular retirement dates.

Core Funds These funds are identified in the Investment Options Guide and cover a broad range of asset classes, including Lockheed Martin Common Stock in the Company Common Stock Fund and the ESOP Fund. If you are comfortable deciding how to divide your money among stocks, bonds, diversifiers, and short-term investments, you can design your own portfolio mix using the Core Funds.

Self-Directed Brokerage Account (SDBA)

This brokerage option allows you to add individual stocks, bonds and mutual funds to your investment menu. If you are an experienced investor who is willing to take on the added risk of trading individual securities or mutual funds, the SDBA gives you the tools to fine tune your investment strategy. (This investment option was previously named the Self-Managed Account (SMA)).

For more information about the investment options available to you, please refer to the Investment Options Guide which may be updated from time to time by Summaries of Material Modifications. To help you evaluate your investment options, the Savings Plan Web Tool provides Morningstar Investment Profiles for each of the Target Date Funds and the Core Funds. The Advisory Services, offered by Voya Retirement Advisors and powered by Financial Engines® offers convenient access to saving and investing advice to help you make informed decisions about how much to save and how to invest for your future through the Lockheed Martin Savings Plans. Access to Voya’s Advisory Services is available via the Savings Plan Web Tool. NOTE: Federal Securities laws prohibit you from directing investments into and out of the Company Common Stock Fund and the ESOP Fund if you possess material, non-public information. For additional information, see Lockheed Martin Corporate Policy Statement 722 (CPS-722). Officers Subject to Section 16B Certain Officers subject to Section 16 of the Securities and Exchange Act of 1934 are also restricted in their ability to direct transactions into or out of the Company Common Stock Fund and the ESOP Fund. For additional information, see Lockheed Martin Corporate Policy Statement 722 (CPS-722).

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The Importance of Diversifying Your Investments To help achieve long-term retirement security, you should consider the benefits of a well-balanced and diversified investment portfolio. Spreading your assets among different types of investments can help you achieve a favorable rate of return, while minimizing your overall risk of losing money. This is because market or other economic conditions that cause one category of assets, or one security, to perform very well often cause another asset category, or another security to perform poorly. If you invest more than 20% of your retirement savings in any one company or industry, your savings may not be properly diversified. While diversification is not a guarantee against loss, it is an effective way to manage investment risk. In deciding how to invest your retirement savings, you should take into account all of your assets, including any retirement savings outside of the Plan. No single approach is right for everyone because, among other factors, individuals have different financial goals, different time horizons for meeting their goals, and different tolerances for risk. Therefore, you should carefully consider your right to move any portion of your account balance that is invested in Company stock into other investment alternatives under the Plan and how this right affects the amount of money that you invest in Company stock through the Plan. It also is important periodically to review your investment portfolio, your investment objectives and the investment options under the Plan to help ensure that your retirement savings will meet your retirement goals. Need help with diversification or other savings plan advice? You may want to consider using Advisory Services offered by Voya Retirement Advisors, powered by Financial Engines®. This service provides personalized, objective investment advice and planning to help you meet your retirement savings goals. You can access Voya’s Advisory Services through the Savings Plan Web Tool. Self-Directed Brokerage Account The information provided below is a summary of the provisions of the Self-Directed Brokerage Account (SDBA). Complete information including applicable fees can be found in the Investment Option Fact Sheet for the SDBA in the Supplement to Appendix C of the Investment Options Guide. The SDBA is a brokerage option that affords you more flexibility in choosing your own retirement savings investments by allowing you to invest in most:

stocks listed on the New York and American Stock Exchanges or NASDAQ, exchange-traded funds (ETFs), corporate and government bonds, and mutual funds

The SDBA investment option is designed for the experienced investor who wants to independently and actively manage a portion of his or her savings plan assets and is willing to accept responsibility for researching, selecting, monitoring and managing the investments. If you are confident with the independent approach to investing and assuming the additional responsibility of actively managing and monitoring the investments in your Savings Plan account, the SDBA may be right for you.

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Roth and non-Roth SDBAs The Plan offers a non-Roth SDBA that may be used to invest the non-Roth portion of your Plan account, and a separate Roth SDBA that can be used to invest any amounts associated with Roth 401(k) contributions, Roth Rollovers or in-plan Roth conversions. If you have both types of SDBAs in the Plan you must provide separate investment directions for each SDBA. Also, each SDBA will be individually subject to the requirements and fees set forth in the Investment Options Guide. As used in this SPD, the terms Self-Directed Brokerage Account or “SDBA” should be interpreted as applying to both the non-Roth Self-Directed Brokerage Account and the Roth Self-Directed Brokerage Account except when the terms “non-Roth” or “Roth” are explicitly used. Participating in the SDBA To participate in an SDBA, you must:

Open a SDBA with the current provider. The application may be downloaded from the Savings Plan Web Tool or you may call the Savings Plan Information Line.

Have a combined balance of at least $4,000 in your Core Funds and Target Date Funds and make an initial transfer of at least $3,000 from your Core Funds and/or Target Date Funds.

Pay all trading fees, commissions, administrative fees, and any other expenses associated with participating in the SDBA.

If you have an account in more than one Savings Plan and want to open an SDBA in each Savings Plan, the above limitations apply to each Savings Plan separately. Transfers to/or from your SDBA To invest in your SDBA, you must transfer money from your Core Funds or Target Date Funds. Transfers may be initiated by accessing the Savings Plan Web Tool or by calling the Savings Plan Information Line. On the Savings Plan Web Tool, access the Plan’s home page and navigate to Account > Manage Investments > Fund Transfer. Note the following transfer restrictions:

After your initial transfer of at least $3,000, subsequent transfers must be at least $1,000 and must not exceed 75% of your total plan balance

Stable Value Fund must assets must be transferred to the Core Funds or Target Date Funds for at least 90 days before they can be transferred into the Treasury Inflation-Protected Securities (TIPS) Fund, the Government Short Term Investment Fund or the SDBA. Furthermore, Savings Plan contributions withheld from your paycheck cannot go directly into the SDBA(s).

Roth 401(k) contributions, Roth Rollovers, and in-plan Roth conversions may only be transferred to a Roth SDBA.

Only savings plan assets can be transferred into the SDBA. You may not contribute any outside assets.

Money transferred from Core Funds or Target Date Funds to the SDBA is invested in a Money Market Fund (MMF) until you direct a trade. Note that Fund transfers completed before 4 p.m. Eastern time will be processed the same business day, and the funds will generally be available in the MMF the following business day. Fund transfers completed at or after 4 p.m. Eastern time will be processed the next business day. The funds will generally be available in the MMF the second business day thereafter.

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Only MMF assets can be transferred from the SDBA back to the Plan’s Core Funds or Target Date Funds. In other words, SDBA assets invested in a stock, mutual fund, bond or ETF must be sold before the proceeds (which will be invested in a MMF) can be transferred. Funds transferred to the SDBA which are not invested in stocks, mutual funds, bonds, or ETFs will remain invested in a MMF and can be transferred back to the Core Funds or Target Date Funds at any time.

Refer to the Investment Option Fact Sheet for the SDBA in the Investment Options Guide for complete transfer instructions SDBA Impact on Loans, Withdrawals and Distributions Loans and withdrawals cannot be made directly from assets in your SDBA(s). Balances held in your SDBA(s) may limit the amounts available for loans and withdrawals. In order to have these assets included in amounts available for loans and withdrawals, you must first sell assets in your SDBA(s) and transfer money into your Core Funds or Target Date Funds to be included in available amounts for loans and withdrawals. Distributions cannot be processed if you have assets in your SDBA(s). Prior to requesting an account distribution, you must first sell all of the assets in your SDBA(s) and transfer all of the proceeds into your Core Funds or Target Date Funds. Following this transfer, your account balance will be made available for distribution subject to the terms of the Plan. SDBA Fee and Expense Information Each security you purchase or sell in your SDBA(s) is a separate transaction. You may be charged commissions and fees as indicated on the Supplement to Appendix C: Fee and Expense Information – Self-Directed Brokerage Account (SDBA) in the Investment Options Guide. Your total savings plan balance is subject to administrative expenses as disclosed in Appendix C: Fee and Expense Information specific to this savings plan of the Investment Options Guide. These expenses are charged daily to each of your investment options on a pro-rata basis; however, the administrative expenses attributable to your SDBA(s) will be charged monthly to your Core Fund and Target Date Fund. Proxy Voting Voting Company Common Stock If you have a balance in the Company Common Stock Fund or in the ESOP Fund, you are entitled to voting rights on Company common stock held in these funds. You will have access to an annual report, proxy information, voting instructions and other materials that are provided to all shareholders of the Company. You also will be provided with information on how you may exercise your voting rights of your Company common stock. Your voting instructions will be made directly to the Trustee. How you vote your shares of Company common stock will be kept confidential by the Trustee and will not be disclosed on an individual participant basis to Company management. If the Trustee does not receive timely voting instructions from you, the Trustee will vote the shares attributable to your account balance in proportion to those shares in the fund for which timely instructions are received from Plan participants. If the Trustee determines that voting in this fashion is not in the best interest of the Plan participants, the Trustee will make an independent determination as to how to vote such shares. You may contact State Street Bank and Trust Company (by mail at P.O. Box 5166, Boston, MA 02206-5166, or by telephone at 800-444-4015) for details of the process for voting the shares of Company common stock attributable to your account balance.

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Voting Rights for Other Funds Except for the Company Common Stock Fund and the ESOP Fund, the Investment Manager for each Fund will decide how to exercise any voting rights attributable to stocks and other investments held in that particular Fund. As explained earlier, you decide how to exercise any voting rights attributable to the Company Common Stock Fund and the ESOP Fund. You also decide how to exercise any voting rights attributable to any investments you choose in the SDBA. Lockheed Martin Investment Management Company, a wholly owned subsidiary of Lockheed Martin Corporation, will decide how to exercise voting rights attributable to any interest in a Target Date or Core Fund other than the Company Common Stock Fund and the ESOP Fund. Information Available from the Recordkeeper upon Request To find out how your account balance is invested or the value of your investment in each Fund, or to change the investment of your future contributions or your account balance, access the Savings Plan Web Tool or call the Savings Plan Information Line. The following information is available upon written request:

A description of the annual operating expenses of each investment option available under the Plan (e.g., investment management fees, administrative fees, transaction costs) that reduce the rate of return you receive and the aggregate amount of those expenses expressed as a percentage of average net assets of the investment option.

Copies of any applicable documents that make up any prospectuses, financial statements and reports, and any other materials relating to the investment options, to the extent that information is available.

The following information is available through the Savings Plan Web Tool:

Information about the total value of units in each investment option offered under the Plan, as well

as the past and current investment performance of each option determined net of expenses. List of assets comprising the portfolio of each designated investment alternative that is

considered a “plan asset” under Department of Labor regulations, the value of each such asset (or the proportion of the investment alternative that it comprises) and, with respect to each such asset that is a fixed rate investment contract, the name of the issuer of the contract, the term of the contract, and the contract’s rate of return.

Morningstar Investment Profiles for each investment option, including top 10 holdings, a complete list of currently held securities and other analysis tools.

If you would like to receive any of the above information, please call the Savings Plan Information Line at 800-444-4015 or write to:

Voya Financial Attn: Lockheed Martin Savings Plan Information Center P. O. Box 24747 Jacksonville, FL 32241-4747 See the “Administrative Information” section for other available information.

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Changing Your Investment Elections Investing future contributions and transferring your existing account balance are two unrelated transactions. You must make a separate request for each transaction. To make either change, access the Savings Plan Web Tool or call the Savings Plan Information Line. For a transaction to be processed on a given business day (excluding weekends, holidays, and days the New York Stock Exchange is closed), your transaction must be completed via the Savings Plan Web Tool or the Savings Plan Information Line by 4:00 p.m. Eastern time. If your transaction is completed after 4 p.m. Eastern time, it will be processed the next business day.

Future Contributions You may change your investment elections for future contributions at any time. Investments in the various investment options must be made in 5% increments. You can make your investment decisions in one of two ways:

Combined decision—You can make a single set of investment choices for all contributions (other than Company Matching Contributions).

Separate choices—You can make individual investment decisions-separately-for each type of contribution. For example, you may have one set of investment instructions for Before-Tax Contributions and another set of investment instructions for After-Tax Contributions.

After you select your investment elections, the change generally will be effective when the Recordkeeper receives the next contribution.

Reallocations/Transfers - Changing Your Current Investment Mix

There are two ways to change the investment of your existing account balance:

Reallocation transaction. Fund transfer transaction.

Reallocations With a fund reallocation, you create your portfolio by identifying what you want your total account to “look like” immediately after the reallocation. You then elect the percentage (in 5% increments) that you want invested in each of the available funds (excluding the SDBA).

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Let’s look at an example. Account balance before the reallocation: Let’s assume your account balance is currently invested in the following funds:

Fund name Percentage of account

balance Fund balance

(dollars) Fund A 27.78% $5,000 Fund B 0% $0 Fund C 0% $0 Fund D 38.89% $7,000 Fund E 0% $0 Fund F 11.11% $2,000 Fund G 22.22% $4,000 Fund H 0% $0 Total Account Balance 100.00% $18,000

You decide to reallocate your account, and to transfer all assets invested in Fund F to other investment funds. To do this, you follow the instructions on the Savings Plan Web Tool or Savings Plan Information Line and select an investment percentage for each of the funds you wish to invest in. (If you don’t want to invest in a fund, select 0%.) Your account will now be allocated as shown below: Account balance after the reallocation:

Fund name Percentage of current

assets to invest in fund Fund balance

(dollars) Fund A 30% $5,400 Fund B 40% $7,200 Fund C 20% $3,600 Fund D 0% $0 Fund E 10% $1,800 Fund F 0% $0 Fund G 0% $0 Fund H 0% $0 Total Account Balance 100% $18,000

Transfer Restrictions NOTE: You may transfer into the Stable Value Fund from any fund at any time, and you may transfer out of the Stable Value Fund into any of the Plan’s other Core Funds or Target Date Funds at any time. However, amounts that are transferred out of the Stable Value Fund must remain invested in a Core Fund or Target Date Fund for at least 90 days before you can transfer them into the SDBA, Treasury Inflation-Protected Securities (TIPS) Fund and the Government Short Term Investment Fund. Fund Transfers Fund transfers allow you to transfer a specific amount of money—in either dollars or as a percentage—among specific funds. This can be done by a whole dollar amount or by a percentage of the balance invested in a particular investment fund (in 5% increments). Fund transfers affect only the fund you take the monies from and the fund to which you move the monies. Fund transfers can be used to move money to all funds available in your Core Funds, Target Date Funds and your SDBA.

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For example, assume your account balance is invested as follows: Account balance before the fund transfer:

Fund name

Fund balance (dollars)

Fund A $5,000 Fund B $7,000 Fund C $2,000 Fund D $4,000 Total Account Balance $18,000

You then decide to move $3,000 from Fund B into Fund E. After following the instructions on the Savings Plan Web Tool (or the Savings Plan Information Line), your account will now be invested as shown below: Account balance after the fund transfer:

Fund name

Fund balance (dollars)

Fund A $5,000 Fund B $4,000 Fund C $2,000 Fund D $4,000 Fund E $3,000 Total Account Balance $18,000

NOTE: The impact of the fund transfer was a change to only those fund balances identified. Transfer/Reallocation Opportunities You may change the investment mix of your current Savings Plan account balance by either a fund transfer (specific dollar amount or specified percentage) or a reallocation (of specified percentages) up to 12 times during a calendar year. These transactions may involve any of the investment funds, including the Stable Value Fund. You always have at least one transfer opportunity each calendar quarter no matter how many investment transfers you’ve already made during the year. For example, even if you made 12 transfers by early in the third quarter, you would still be able to make one more transfer in the fourth quarter. In addition, you will have one additional opportunity to transfer all or part of your account balance to the Stable Value Fund during the fourth quarter of the year—even if you’ve made 13 transfers as described above. NOTE: You may transfer into the Stable Value Fund from any fund at any time, and you may transfer out of the Stable Value Fund into any of the Plan’s Core Funds or Target Date Funds at any time. However, amounts that are transferred out of the Stable Value Fund must remain invested in a Core Fund or Target Date Fund for at least 90 days before you may transfer them into the SDBA, Treasury Inflation Protected Securities (TIPS) Fund and the Government Short term Investment Fund. NOTE: Company Matching Contributions are automatically invested in the ESOP Fund, however, you may transfer some or all of these contributions at any time to one or more of the other available funds.

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Transaction Rules and Restrictions The Plan Administrator may establish rules and procedures governing election changes and other matters. Lockheed Martin Investment Management Company may establish rules and procedures governing the selection and removal of investment options. In certain situations (for example, excessive transfers), limitations may be imposed with respect to investment changes by a participant or participants. Thirty-Day Transfer Restriction If you transfer all or a portion of your existing account balance out of any investment option in the Plan, you will not be eligible to make a transfer back into that investment option for 30 calendar days. Unlimited Transfers from the Company Common Stock Fund and the ESOP Fund You may make unlimited transfers of your funds from the Company Common Stock Fund and the ESOP Fund into any other available investment option, including the SDBA. Fund transfers from these funds will not count toward the 12 transfer opportunities that you are allowed each year. Please note that if you perform a fund reallocation that affects the Company Common Stock Fund or the ESOP Fund, that reallocation will count toward your 12 annual transfer opportunities. NOTE: Loans and withdrawals that you process from your account will not be counted as investment trades and as a result will not impact the number of trading opportunities available to you during a calendar year. Potential Delays for Transactions The Trustee, in its discretion or as directed by the investment managers, may limit the daily volume of its purchases or sales of securities (and hence may limit the Plan’s transactions) including, without limitation, the Company Common Stock Fund or the ESOP Fund. The Trustee, as directed by the investment managers, acts independently in connection with purchases and sales of securities for the Plan; the Company has no control over the timing or manner of such purchases or sales. The Trustee may not complete transactions on a particular day for a number of reasons, such as a suspension of trading in an asset important to one of the investment funds, a major market disruption, a lack of liquidity in one of the investment funds, or if one of the investment funds is not operational. As a result, participant requests for all types of transactions for the Plan for that day, and perhaps later days, may be delayed. If the Trustee limits the volume of purchases or sales in a security in one of the investment funds, or otherwise cannot complete certain transactions in one of the investment funds for that day, the result may be transaction delays relating to that particular investment fund. Transaction requests for that day that do not involve that particular investment fund should be processed on the date requested. Generally, you may not revoke a transaction once it has been requested, but you will be informed in writing if for any reason a transaction is not completed on the day requested. If a transaction is not processed on the day requested because the Trustee has limited the daily volume of purchases or sales, the transaction will be completed as soon as administratively practical on the following or subsequent business days. The transaction will be priced according to the unit prices in effect on the day the transaction is completed. Transactions requested in the days following a delay may also not be completed on the day requested if processing of prior days’ transactions has not been completed. The value of your pending transaction may be invested in a short-term reserve account, pending investment in the funds you select.

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Fees and Administrative Expenses Investment management fees, brokerage commissions, transaction costs and other expenses of an investment fund are paid out of the assets of the investment fund to which they relate, unless stated otherwise, and are stated as a percentage of assets. The Plan also provides that other Plan administrative expenses may be charged against assets of the Plan, to the extent permitted by law. Such administrative expenses include, but are not limited to, the compensation of Trustees, administrative service providers, recordkeeping, audit and accounting and legal fees, reporting costs and the cost of processing Qualified Domestic Relations Orders and certain Company employees performing administrative or investment services for the Plan. These expenses are incurred by the Lockheed Martin Corporation Defined Contribution Plans Master Trust, one or more Funds or one or more employee benefit plans that are beneficiaries under the Defined Contribution Plans Master Trust. Those expenses incurred by the Defined Contribution Plans Master Trust or one or more Funds are allocated among the plans and specifically to this Plan based upon either the market value of assets or the number of participants of each plan that is a beneficiary of the Defined Contribution Plans Master Trust or is invested in a Fund. These expenses are stated as a range of percentages of assets. The actual percentage may fluctuate based upon the actual expenses incurred in any year and the amount of Plan assets and number of Plan participants at the time such expenses are paid. See the Investment Options Guide for more information. Total annual expenses for each Fund will be the combination of fees and expenses for that investment option, as disclosed in either the documents that make up any Fund prospectus and/or the administrative expenses paid by the Plan as described in the Investment Options Guide. Certain fees may be deducted from your savings plan account balance. Such fees are for services required to administer the Plan (e.g., audit, communications, and legal services) and will be allocated among individual accounts in proportion to each account balance. You may review general plan administrative fees deducted from your account on your Plan statement. See “Participant Fee Disclosure on Statements” below for details. In addition to the administrative fees, separate fees may be deducted from your account if you elect certain transactions, such as a plan loan, overnight mail, in-plan Roth conversion, or certain service program elections (e.g., Voya Retirement Advisors/Professional Management Advisory Service). If you have selected the Plan’s SDBA (Roth and/or non-Roth) as an investment option, your investments in the SDBAs are subject to administrative expenses which may be deducted from your account. You may review individual fees deducted from your account on your savings plan account statement, as described below under “Participant Fee Disclosure on Statements”. General plan administrative fees and individual fees deducted from your savings plan account may be viewed on your account statement. The section of the statement titled “Your Fee Detail” displays the dollar amount for certain administrative services and individual expenses actually charged to your savings plan account. The fees that may be displayed in the “Your Fee Detail” section of your statement include:

Administrative Fees – fees that are plan specific, such as printing and postage costs for savings plan communications

Loan Request Fee – loan application fee Overnight Mail Fee – for documents you have requested be sent overnight Self-Directed Brokerage Fee – for participants who have selected the Roth and/or non-Roth

SDBAs as investment options Managed Account Fee – for participants who have elected Professional Management i.e., the

managed account option of Voya’s Advisory Services

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In-Plan Roth Conversion Fee – for participants who have elected to make an in-plan Roth conversion from certain non-Roth account balances to a new Roth conversion source in their account

Note that most expenses including fees for recordkeeping, trustee services, investment oversight, and other administrative costs are not deducted from your savings plan account but are charged via the total annual operating expenses of the plan’s investment options. These fees are not included in the Administrative Fees displayed on your statement. An annual Participant Disclosure Notice for your Savings Plan is available on the Savings Plan Web Tool.

Treatment of Dividends from the Company Common Stock Fund and the ESOP Fund Unless you make an election to have quarterly dividends distributed directly to you as taxable income, quarterly dividends paid on shares of Company common stock in the Company Common Stock Fund and the ESOP Fund are considered Employee Stock Ownership (“ESOP”) dividends and are automatically reinvested in those Funds. Procedure for Making a Dividend Election You can elect how you want your quarterly dividends directed by accessing the Savings Plan Web Tool. At the Savings Plan Web Tool home page, click on your plan’s name > Account > Dividends. You can also make your election by calling the Savings Plan Information Line. You may change your election as often as you wish, but there are election deadlines for each quarter. Your election on file as of 4:00 p.m. Eastern time on the Election Deadline date will be the final and irrevocable election exercised for that quarter. Once you have made an election to have dividends paid directly to you, the election will remain in effect for all future quarterly dividends unless you change your election by the Election Deadline date for a subsequent quarter. The Election Deadline dates are described below. Your election will apply to dividends you receive from both the Company Common Stock Fund and the ESOP Fund. You cannot elect to have dividends from one fund be reinvested and dividends from the other fund be paid directly to you. Distribution of Dividends Quarterly dividends reinvested in the Company Common Stock Fund and the ESOP Fund are credited to your account each quarter on the day they are paid by the Company, and can be viewed in your account on the next business day. If you elect to have dividends paid to you in the form of a check, dividends are distributed semi-annually. First and second quarter dividends are distributed in late June, and third and fourth quarter dividends will be distributed in late December.

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Important Dates To ensure that your dividends are managed in accordance with your preference, please be aware of the following key dates:

Ex-dividend date – To be eligible for a quarterly dividend from the Fund(s), you must own units in the Fund(s) as of the close of business on the day before this date. Access the Savings Plan Web Tool or contact the Savings Plan Information Line for this date.

Election Deadline date – Date on which your quarterly dividend election becomes irrevocable. For each quarter, the Election Deadline is the 15th of the last month of the calendar quarter (March, June, September and December). If the 15th falls on a New York Stock Exchange holiday or weekend, the Election Deadline is the following business day.

Payment date – Date on which the quarterly dividends actually are paid by the Company. Access the Savings Plan Web Tool or contact the Savings Plan Information Line for this date.

Allocation date – Date on which your quarterly dividends that are reinvested will purchase additional units in your account. Access the Savings Plan Web Tool or contact the Savings Plan Information Line for this date. You will be able to see these additional units on the Savings Plan Web Tool on the following business day. This date is typically the same as the Payment date.

Distribution date – Date on which dividends that are not reinvested are paid to participants. The distribution date for the first and second quarter dividends is in late June. The distribution date for the third and fourth quarter dividends is in late December.

NOTE: If you have Banking Information updated on your account your dividend distribution will be paid via Direct Deposit.

Keeping Track of Your Account Accounts Are Valued Daily The value of your account balance is maintained in an individual account established in your name and valued as of 4:00 p.m. Eastern time each business day. Savings Plan Statements Your year-end annual account statement will automatically be printed and mailed to you. In addition, you may create an account statement at any time as described below. Creating your Account Statement You can create your Plan statement at any time by visiting the Savings Plan Web Tool. Your Plan statement will show:

Before-Tax, Roth 401(k), After-Tax and Catch-Up Contributions Company Contributions, if any Investment gains or losses Withdrawals Loans Dividends earned on company stock fund investments Rollovers from another plan Investment changes that you made during the period Important notices from the Company News from the Plan sponsor Account activity

You can create a statement that covers the most recent quarter or you can create a statement covering other periods (such as monthly, quarterly, or year to date) of up to 24 months.

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You Have a Right to Receive a Paper Account Statement You have the right to request to have a paper account statement mailed to you at no charge at any time. This can be done by calling the Savings Plan Information Line and speaking to a customer service representative. Keep Your Address Current Make sure the Company has your current address on file so we can contact you about your account. If you are an active employee, address changes must be made on LM People. Your address change will be forwarded to the Recordkeeper. If you are a terminated participant, you can change your address by accessing the Savings Plan Web Tool or by calling the Savings Plan Information Line. Keep Your Delivery Preferences Current Your delivery preferences for both confirmation notices and account statements will automatically be changed to U.S. Mail when you leave the Company unless you have already elected online delivery and provided a personal email address on the Mail Preferences page.

You can re-enroll for online delivery for either or both document types by accessing the Savings Plan Web Tool and selecting User Preferences at the top of the page and then Mail Preferences.

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Loans The Plan is designed to help you save for your retirement. However, you may have an urgent financial need before you retire. Subject to the eligibility provisions below, you can borrow from your total account balance (less most Company Contributions and associated earnings) by applying for a loan from the money you contributed to your account, including Roth 401(k) Contributions and associated earnings. Two kinds of loans are available:

Personal loans. Residential loans for the purchase of your primary residence.

NOTE: There are special documentation requirements for Residential loans.

Although it reflects a very important financial decision, applying for a loan is simple. Just as you make investment changes or apply for a withdrawal, you can access the Savings Plan Web Tool or call the Savings Plan Information Line to request a loan. A $25 non-refundable application fee will be deducted from your account. Your loan will be repaid each pay period through automatic payroll deductions. Your loan repayments will generally be credited to your account weekly. You may have only one loan outstanding at any given time.

Consequences of Taking a Loan

A loan is paid with after-tax dollars, unlike the Before-Tax Contributions that go into your account. When you take your money out in retirement, it will be taxed again. So a loan results in double taxation for you as the borrower.

When you take a loan from your account, you might miss market gains you could have benefited from if you left your money in the account.

If you take out a loan and then are terminated, you are obligated to pay back the entire outstanding balance of your loan. Whatever amount you do not repay is considered a retirement distribution and may be subject to income tax and possibly a 10 percent early withdrawal penalty.

Who Is Eligible You may apply for a loan if:

You are an employee of the Company with an account balance in the Plan, and You are on the active payroll of the Company or are on qualified military leave, and You have no other outstanding loans from this or any other Company savings plan, and It has been at least 15 days since you paid off any prior Plan loan.

You may not apply for a loan if you are on an unpaid absence from work, other than military leave. As you decide whether to take out a loan, please keep the following important points in mind:

A loan may change the earnings on your account, since the interest you pay on your loan may differ from the growth that money would have earned had it remained invested according to your investment elections.

Taking out a loan will reduce the amount available for withdrawals. A loan becomes due and payable if you leave the Company.

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If your loan defaults, the unpaid balance becomes a deemed distribution and is taxable in the year of default.

Interest will accrue on any missed payments. Interest will accrue from the date of last payment until the date of default and is considered

taxable in the year of default. Interest will accrue on defaulted balance until loan balance is satisfied through payoff or

termination. Impact of Self-Directed Brokerage Account on Loans You cannot take a loan directly from the assets in your Self-Directed Brokerage Account. To have these assets included in the amount available for a loan, you must first sell assets in your Self-Directed Brokerage Account. After the trade settlement period, generally three business days, you must transfer money into your Core Funds or Target Date Funds for it to be available for a loan.

How Much You Can Borrow The minimum loan amount is $500. The maximum loan amount is the lesser of:

a) 50% of your total account balance, including your Roth 401(k) balance, less LM Company Contributions (and associated earnings) and any amount in a Roth Self-Directed Brokerage Account and certain other Company Contributions, or

b) $50,000

minus your highest outstanding loan balance during the past 12 months.

For example: Your total account balance $60,000 Highest outstanding loan balance in last 12 months $10,000 $60,000 - $10,000 $50,000 50% of account balance $30,000 The maximum loan would be the lesser amount, or $30,000.

Duration of Your Loan Personal loans are available in durations of one, two, three, four or four and a half years. Residential loans are available for up to 15 years (in whole years) but may only be used for the purchase of your primary residence. There are special documentation requirements for Residential loans. The minimum repayment amount is $10 per week. The most you may repay each month is half your gross monthly income. These limitations may affect the duration of the loan. Refinancing is not available on any Plan loan.

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Loan Modeling The Savings Plan Web Tool and the Savings Plan Information Line provide the choice of:

Obtaining your eligible loan amount or existing loan balance If you have an outstanding loan, you can obtain your current loan balance and other important information on your loan. If you have no existing loan and you are eligible for a loan, you can find out how much you can borrow and the current interest rate.

Loan modeling to compare rate, duration and payment information If you are eligible for a loan, loan modeling can help you select the loan terms that best meet your needs. After you enter the loan amount and duration, the modeler calculates your weekly payment.

NOTE (for former Performance Sharing Plan (PSP), Loral savings plans, Lockheed Martin Global Telecommunications (LMGT) Savings and Incentive Plan, and OAO Corporation Employee Savings Plan participants): Company Matching Contributions made before January 1, 1997, for former PSP participants, before July 1, 1998, for former Loral savings plans participants, before January 1, 2002, for Lockheed Martin Global Telecommunications Savings and Incentive Plan participants, and Company Contributions made before April 1, 2002, for OAO Corporation Employee Savings Plan participants are available for loans.

How the Loan Is Deducted from Your Account Your loan amount is deducted from your account balance in the following order: Rollover Contributions, Company Matching Contributions, certain Company Contributions (if any), Before-Tax Contributions (in reverse of the order defined in the section on withdrawals after age 59-1/2 below), After-Tax Contributions (in reverse of the order defined in the section on withdrawing After-Tax Contributions below), and lastly all Roth Contributions (which includes Roth 401(k) Contributions, Roth Rollovers and in-plan Roth Conversions). If you are restricted by law from investing in the Company Common Stock Fund or ESOP Fund because you are a Section 16 officer (or in order to comply with other laws), money in these funds is not available for a loan. However, your entire account, including Company Common Stock Fund and ESOP Fund balances, excluding LM Company Contributions (and associated earnings), is included in determining the maximum amount you can borrow. Interest on Your Loan You will pay a fixed interest rate, which is established when you request a loan. This rate equals the prime rate plus 1%. The prime rate is the base rate on corporate loans posted by at least 75% of the nation’s 30 largest banks as reported in The Wall Street Journal on the first business day of the month before the month you apply for your loan. The loan will be amortized based on 52 weeks per year. For example, if you apply for a loan in July, the interest rate will be the prime rate reported on the first business day in June, plus 1%.

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Applying for a Loan You can request a loan through the Loans section of the Savings Plan Web Tool by selecting "Request a Loan" or by calling the Savings Plan Information Line. If you request a loan before 4:00 p.m. Eastern time on a business day, your request will be processed that night. If you request a loan after 4:00 p.m. Eastern time, your request will be processed at the end of the next business day. A non-refundable $25 application fee will be deducted from your account balance. The loan check will be mailed within two business days of processing or you may request the loan proceeds be sent via Direct Deposit to your checking or savings account. For an additional fee, you may also have your loan check delivered to you using overnight mail.

Loan Processing and Procedures (for a Personal Loan) After you request a loan through accessing the Savings Plan Web Tool or calling the Savings Plan Information Line, you will receive:

A bank check with the Promissory Note, or Direct Deposit into your checking or savings account, and

The Federal Truth in Lending Disclosure Statement (which describes the loan amount, interest

rate, number and amount of repayment installments, and all terms and conditions of the loan). When you receive the Federal Truth in Lending Disclosure Statement and the Promissory Note; review each carefully to be sure the information is correct. If the information is not correct, call the Savings Plan Information Line and speak to a customer service representative. Endorsing the loan check means you are signing the Promissory Note and accepting all terms of the loan. If your plan account mail preferences are set for electronic delivery of documents, your Promissory Note will be available in your Savings Plan Web Tool mailbox the next business day. Otherwise, your Promissory Note will be sent via U.S. mail. No Residential loans will be issued until the recordkeeper has received and reviewed the signed Promissory Note and other required documentation. If the documents submitted do not meet all requirements, you will receive a letter from the recordkeeper detailing the deficiency that needs to be corrected in order for your loan to be issued. In order to take advantage of the Direct Deposit or the Direct Debit for loan payoff features you will need to enter your banking information. Go to “Personal Information” then select “Banking Information” and enter your banking information directly online. After the banking information has been updated in your account for at least seven days you may request your loan proceeds be directly deposited to your checking or savings account, however the banking information is immediately available for Direct Debit for loan payoff. To complete this request you will be asked to agree to the loan terms online and prompted to print the Truth-in-Lending statement upon your request. NOTE: Once Banking Information is updated on your account, proceeds from your requested loans will be paid via Direct Deposit. Direct Deposit will also be the default payment method for any automated payments, i.e., installments, pass through dividends, etc.

https://lmco.voyaplans.com/epweb/pweblink.do;jsessionid=4C7C657E99EF1E0ABD652CE95D32AD6B.P709?plan=720001&page=bankinginfo&s=Mhd0DhxGwapj7SDV2MTohA--.P804&domain=lmco.voyaplans.com&cl=MARTIN&pl=720001&jsessionid=4C7C657E99EF1E0ABD652CE95D32AD6B.P709&d=5c7aa84f5807f5a310a270cea241608d7cd292c8

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Documentation Requirement for Residential Loans The Plan’s rules permit you to request either a Personal loan or a Residential loan. A Personal loan must be repaid within four and a half years and may be used for any purpose. In accordance with IRS regulations, a Residential loan may be for a period of up to 15 years but may only be used for the purchase of your primary residence. In connection with any Residential loan request, you are required to:

a) sign and submit a Promissory Note, including notarized spousal consent if required, in which you attest that the purpose of the loan is the purchase of your primary place of residence; and b) submit a copy of the Purchase and Sales Agreement, or a similar document, signed by all parties.

If your plan account mail preferences are set for electronic delivery of documents, your Promissory Note will be available in your Web Tool mailbox the next business day. Otherwise, your Promissory Note will be sent via U.S. mail. No Residential loans will be issued until Voya has received and reviewed the signed Promissory Note and other required documentation. If the documents submitted do not meet all requirements, you will receive a letter from Voya detailing the deficiency that needs to be corrected in order for your loan to be issued.

Loan Cancellation Once a loan check has been issued, you may return the unsigned and uncashed check to cancel the transaction. Once a loan check has been signed or cashed the transaction cannot be canceled, Loan proceeds received via Direct Deposit cannot be canceled. Cancelled loans do not count as having been an outstanding loan for purposes of loan availability calculations

Repaying Your Loan If you are on the Company’s active payroll, you will repay your loan through weekly payroll deductions beginning the first pay period after the Plan Recordkeeper notifies your payroll administrator that you have taken out a loan. Loan repayments will be withheld from your pay after taxes have been deducted. If you are on a Company-approved unpaid leave of absence for at least a month, you will receive a coupon book from the Plan Recordkeeper. You must submit your loan repayment and coupon to the Recordkeeper each month or your loan will default. IRS regulations allow employees on a Company-approved leave of absence to suspend their loan repayments to the Plan for up to 12 months. You may not suspend loan payments beyond the term of the loan. If you suspend your loan repayment, you must restart payments as soon as you complete your leave of absence or you have been out on leave for 12 months, whichever comes first. You may not suspend loan repayments during absences from work that have not been approved by the Company. How Your Loan is Repaid to Your Account Your loan repayments are invested in your account on a pro-rata basis in proportion to the amounts originally transferred from each source to fund the loan. If you do not have an investment election on file, your loan repayments will be invested in the Default Investment Option.

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Early Payoff You may pay off your loan in full at any time after 30 days from the date the loan was issued. Partial prepayments are not allowed. To pay off an existing plan loan in full, the payment options available to you are certified check, cashier’s check or money order. Personal checks are not accepted. You may also elect to fully repay a plan loan using Direct Debit from your checking or savings account. You may make a direct debit loan payoff by accessing your account via the Savings Plan Web Tool and navigating to Account > Loan Payment. Please note that you cannot use Direct Debit for loan payoff unless your banking information is on file in your savings plan account. If you have not previously provided your banking information, you may do so via the Savings Plan Web Tool by accessing your plan account and navigating to Personal Information > Add/Edit Banking Information. You’ll need to specify whether you want to use a checking or savings account and provide the bank routing number and your account number. If you want to use a savings account with a credit union, please verify that it can accept credits via ACH. If you elect to repay the balance of a loan using Direct Debit and do not already have banking information on file with the plan’s Recordkeeper, your loan repayment can be processed, but you must wait seven (7) days from the date you provide your banking information before you may request any type of withdrawal or distribution from your account. For more information, access the Savings Plan Web Tool or call the Savings Plan Information Line. Loan Defaults A portion of your account balance, equal to the amount of your loan, serves as collateral for the loan. If you default on your loan, the Recordkeeper will satisfy your unpaid loan balance by using the collateral in your account. Under current tax law, you may be subject to an additional tax (currently 10%) if you are under age 59-1/2 on the date of default. If you are still working for the Company, taxable interest will continue to accrue monthly on the unpaid balance. Furthermore, you may not take out another loan until you pay off your outstanding loan balance and interest accrued since the date of default. Your loan will default if you:

Leave the Company and do not repay your loan in full by the last day of the calendar quarter after the calendar quarter during which you missed your last scheduled loan repayment (for example, if your payment was due on February 20, you must pay your loan in full by June 30); or

Do not make scheduled loan repayments while you are out on a Company-approved or other unpaid leave of absence, or

Do not repay your personal loan in full within five years; or Do not repay your residential loan within 15 years.

If you are on a Company-approved leave of absence, you will be considered in default, and your outstanding loan balance will be considered a deemed distribution, on the last day of the 12th month of missed payments or on the maturity date of the loan, whichever comes first.

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Loans and Repayments for Employees on Military Leave Loans are available during your qualified military leave by accessing the Savings Plan Web Tool or calling the Savings Plan Information Line. If you have an outstanding Plan loan when you begin a qualified military leave, loan repayments will be suspended during qualifying periods of military service. When you return to work, payments will be recalculated over a period not to exceed the maximum loan period allowed by the Plan, measured from the original date of the loan plus your period of military service. Interest on your loan will continue to accrue during your leave but will not exceed six percent as long as you supply a copy of your military orders to the Company and ask that the six percent interest rate limit be applied. If you want to continue repaying your loan while on active military leave, coupon books are available upon request by calling the Savings Plan Information Line. Your loan will not default during the period of your military leave.

If You Leave the Company Your outstanding loan balance will become due and payable in full on the date you leave the Company (including terminations due to the start of layoff). In order to avoid defaulting on your outstanding loan and paying taxes on it as a distribution from the Plan, and to be able to roll over the full amount of your account balance, you must pay off your loan in full before you request a final distribution from the Plan.

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In-Plan Roth Conversion

An in-plan Roth conversion allows you to convert the portion of your distributable Plan balance that is eligible for Rollover into a Roth Conversion source in your Plan account. You are permitted to make one in-plan Roth conversion in each calendar year. If you participate in more than one savings plan offered by the Company that permits in-plan Roth conversions, you may make one such conversion in each plan per calendar year. Your Plan account will be charged a $200 fee for each in-plan Roth conversion. The fee will be deducted first from your non-Roth sources, then from your Roth 401(k) Contributions and Roth Rollovers and lastly from any Roth Conversion balance. Tax Implications and Important Considerations In accordance with IRS regulations, an in-plan Roth conversion is treated as a withdrawal or distribution from the Plan that is immediately rolled back into a Roth account in the same Plan. After a Roth conversion has been completed, investment earnings will be tax-free if the converted amount and associated earnings remain in the Plan until you reach age 59-1/2 and at least four years after the end of the year in which your first Roth 401(k) contribution, Roth Rollover or in-plan Roth conversion was made to the Roth account (or upon your death or disability). Under these circumstances, you will not have to pay federal income tax on the earnings upon withdrawal from the Plan. However, withdrawals and distributions not meeting these requirements are taxable upon distribution.

You must pay taxes on the converted assets as if they had been distributed to you. A Form 1099-R detailing the distribution of the amount being converted and its immediate Rollover back into the Plan as a Roth amount will be sent by January 31 of the year following a conversion. Once completed, an in-plan Roth conversion and any tax owed are irrevocable.

There is no tax withholding from an in-plan Roth conversion, so you are responsible for estimating and paying the amount of tax owed. You may need to make quarterly estimated tax payments and/or increase payroll withholding to avoid penalties.

You will not be subject to the special 10% tax that is applicable to most Plan distributions made before you attain age 59-1/2. However, the tax may apply if you subsequently take a distribution of the converted amount less than four years after the end of the calendar year in which the conversion was completed, unless you qualify for an exemption from the 10% tax at the time of the subsequent distribution. Exclusions from the 10% tax may include the subsequent distribution being issued due to your disability or death, or occurring after you attain age 59-1/2. Consult with your tax advisor for more details regarding these exclusions.

Any Lockheed Martin common stock that is converted will be taxed based on the closing market value of the stock on the date the conversion is completed. You will permanently lose the opportunity to use any possible tax treatment on any unrealized gain on the stock at the time of conversion through IRS provisions on Net Unrealized Appreciation (NUA).

Plan restrictions may prevent withdrawal from your Plan account for the purpose of paying taxes owed. Also, you may incur additional taxes on any such withdrawal.

The decision to make an in-plan Roth conversion is extremely complex. An in-plan Roth conversion and any tax owed are irrevocable.

It is strongly recommended that you consult with your financial and/or tax advisor if you are considering an in-plan Roth conversion.

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Eligibility The following participants are eligible to make in-plan Roth conversions:

Current employees Former employees Qualified Domestic Relations Order alternate payees who are a Spouse or former Sspouse of a

participant Spousal Beneficiaries, however, since a Beneficiary’s account will be fully distributed after the

end of the third month following account set up, Beneficiaries should consult a tax advisor.

Initiating an In-Plan Roth Conversion In order to initiate an in-plan Roth conversion, you must complete the In-Plan Roth Conversion Form which can be downloaded from the Savings Plan Web Tool or requested via the Savings Plan Information Line. Your completed form must be mailed to the Recordkeeper at the address provided on the form. The conversion will typically be completed within five to seven business days after receipt of your completed form. Please note that incomplete forms will not be processed. To ensure conversion is completed within a particular calendar year, Voya must receive your completed form no later than December 15 of that year. You will receive a Statement of Account Distribution after the conversion has been completed.

Balance Available for In-Plan Roth Conversion There is no minimum or maximum limit on the amount that can be converted, provided the amount is distributable to you and eligible for Rollover. Balances in a non-Roth SDBA must first be transferred into your Core Funds or Target Date Funds to be available for in-plan Roth conversion. In order to make additional amounts available for in-plan Roth conversion, withdrawal opportunities have been created with restrictions so that they can only be used to initiate an in-plan Roth conversion. These withdrawals, many of which are only available prior to age 59-1/2 if you have at least five years of participation in the Plan are listed below. If you are a current employee:

IRS regulations only permit you to convert amounts that are available to take as an in-service withdrawal, and which, if withdrawn, would be eligible for Rollover to an IRA or other qualified plan. This excludes Hardship Withdrawals.

If you are under age 59-1/2, IRS regulations do not allow you to convert your Before-Tax contributions or associated earnings.

After-Tax balances are not available for in-plan Roth conversion

Company Contributions are not available for in-plan Roth conversion

Balances requiring spousal consent for withdrawal or distribution are not available for in-plan Roth conversion.

Any amounts you have converted to Roth, and associated earnings, are only available for withdrawal after age 59-1/2 (once every six months) or as part of a Roth Hardship withdrawal. Unless the withdrawal meets the requirements of a Qualified Distribution, any earnings withdrawn may be subject to tax.

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Any amount you convert to Roth can only be withdrawn prior to age 59-1/2 in cases of pre-

defined hardship or if you leave the Company.

If you are a former employee or retiree:

In general you may convert any portion of your non-Roth Plan balance that is distributable, eligible for Rollover and does not require spousal consent except LM Company Contributions (and associated earnings).

Unless the withdrawal meets the requirements of a Qualified Distribution, any earnings withdrawn may be subject to tax.

The amount in your plan account that is available for an in-plan Roth conversion can be found on the Withdrawals page on the Savings Plan Web Tool or by calling the Savings Plan Information Line.

Qualified Distribution A qualified distribution is a withdrawal or distribution made after a 5-year period of Roth participation and made after you turn 59-1/2 years old (or upon death or disability). Your 5-year period of Roth participation generally begins on January 1 of the year in which you first make a Roth 401(k) contribution, Roth Rollover or Roth conversion into your Plan account and ends at the end of the fifth consecutive calendar year. If you participate in multiple Savings Plans, each Plan will have its own 5-year period of Roth participation. Withdrawals and distributions of Roth amounts not meeting these requirements are taxable upon distribution.

Other Important Information

All converted amounts will be invested in the same manner as they were prior to conversion.

The order in which your balances will be used for a requested in-plan Roth conversion is: Rollover4, Before-Tax1&4, certain Company Contributions2,4&5, Transferable Company Match2&3, ESOP Company Match2, and After-Tax3. 1 indicates all or a portion of these sources are not available to current employees for in-plan Roth conversion prior to age 59-1/2 2 indicates all or a portion of these sources are not available to current employees for in-plan Roth conversion prior to age 59-1/2 unless the participant has been in the plan for at least 5 years. 3 indicates all or a portion of these sources are not available to current employees for in-plan Roth conversion. 4 indicates a portion of these sources are subject to Spousal Consent and is not available for in-plan Roth conversion. 5 LM Company Contributions are not available for in-plan Roth conversion.

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Withdrawals While Actively Employed The Plan’s objective is to help you supplement your retirement income. But if you need access to your money, you may be able to make withdrawals from your account while you are an active employee. In exchange for the tax break you get on your Before-Tax and Roth 401(k) Contributions, the IRS limits when you may withdraw money from your account. The IRS also penalizes most early withdrawals. In most cases, you may not receive your Before-Tax Contributions, Roth 401(k) Contributions, Rollover Contributions (if any), your Company Matching Contributions, or your LM Company Contributions (or other Company Contributions, if applicable) until you terminate employment or reach age 59-1/2. However, you may be able to withdraw some of your other contributions. The chart under the “Withdrawal Availability While Actively Employed” section summarizes your withdrawal options. Except for Hardship Withdrawals and withdrawals during military leave, you can initiate a withdrawal request by calling the Savings Plan Information line or via the Savings Plan Web Tool. Hardship Withdrawals and withdrawals during military leave can only be initiated by calling the Savings Plan Information Line. NOTE (for former Lockheed Salaried Savings Plan Plus participants): If you formerly participated in the Lockheed Salaried Savings Plan Plus, you may withdraw Company Matching Contributions in your account as of July 1, 1989, and associated earnings. A withdrawal of your non-ESOP Company Matching Contributions will result in the suspension of your current Company Matching Contributions for six months. NOTE: Once Banking Information is updated on your account, proceeds from any requested withdrawal will be paid via Direct Deposit. If you do not want your withdrawal via Direct Deposit, you must call the Savings Plan Information Line and speak to a customer service representative to cancel your banking information and request a check. You can also change your banking information on the Savings Plan Web Tool. If you add or change banking information, there will be a 7-day hold on any disbursements from your account.

Self-Directed Brokerage Account Impact on Withdrawals You cannot withdraw assets directly from your Self-Directed Brokerage Account (SDBA). Any SDBA assets you wish to withdraw must first be sold. After the trade settlement period, generally three business days, you must transfer money into your Core Funds or Target Date Funds for it to be included in the available amount for withdrawal.

Withdrawing After-Tax and Matching Contributions from Your Account You may make a withdrawal of After-Tax Contributions made to the Plan up to four times per 12-month period. If you withdraw After-Tax Contributions made after December 31, 1996 or the earnings on those contributions, or you withdraw Company Matching Contributions made to the plan prior to the first payroll period of the July 1989 fiscal accounting month of Lockheed Corporation or the earnings on those contributions, Company Matching Contributions will be suspended for six months.

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If you withdraw the After-Tax Contributions you made before January 1, 1997 and/or any attributable earnings on those contributions, Company Matching Contributions may continue without suspension. If your withdrawal is approved, the money will come out of your account in the following order:

After-Tax Contributions you made before January 1, 1987, without associated earnings. After-Tax Supplemental (unmatched) Contributions you made after December 31, 1986 but prior

to January 1, 1997 and associated earnings. After-Tax Basic (matched) Contributions you made after December 31, 1986 but prior to January

1, 1997 and associated earnings. After-Tax Contributions you made after December 31, 1996 and associated earnings. Earnings attributable to the After-Tax Contributions you made before January 1, 1987. Company Matching Contributions made to the plan prior to the first payroll period of the July 1989

fiscal accounting month of Lockheed Corporation and associated earnings. NOTE: Certain types of After-Tax and Matching Contributions from acquired plans may also be available for withdrawal. Please contact the Savings Plan Information Line for more information.

Distributions During Military Leave If you are called to active duty for more than 30 days, you will be eligible to process early distributions of Before-Tax, After-Tax and Roth 401(k) Contributions. This distribution may be subject to a 10% early distribution penalty if you are under 59-1/2 years old unless an exception applies. If you take this distribution, your future Before-Tax, After-Tax and Roth 401(k) Contributions are limited for the six-month period following the date of distribution. You must re-enroll after the six-month period to restart these contributions. If you are a reservist or guardsman who is ordered or called to duty for a period of more than 179 days (or for an infinite period) you may take a “qualified reservist distribution” of your Before-Tax Contributions, as long as the distribution is made between the date of the order or call to duty and the close of your active duty period. The 10% tax penalty on early distributions does not apply to qualified reservist distributions. You may repay the distributed amount to an IRA on an After-Tax basis over the two-year period following the end of your active duty. To request a military leave withdrawal:

Call the Savings Plan Information Line. Confirm that you have been on military leave for at least 30 days. (A Customer Service

Representative will submit a request to confirm your military leave period before processing a withdrawal.)

You may request a withdrawal at any time; however the penalty fee will not be waived unless your military leave is confirmed.

You may file a 1040X form to recover the penalty fee taken on an eligible military leave withdrawal.

NOTE: If you receive an in-service distribution of your Before-Tax, After-Tax and/or Roth 401(k) Contributions, you will not be permitted to make any contributions to the plan during the six-month period following the date of distribution.

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Hardship Withdrawals Eligibility for a Hardship Withdrawal If you are a participant in the Plan and are actively employed, you may be eligible to withdraw some portion of your Plan account due to certain financial hardship events. You must meet certain conditions to qualify for a Hardship Withdrawal of your Before-Tax Contributions, Roth 401(k) Contributions, and Rollover Contributions. In order to qualify, you must demonstrate to the satisfaction of the Plan Administrator that your “heavy and immediate” financial need qualifies as a hardship according to current regulations, and that the distribution is necessary to satisfy that need. Before applying for a Hardship Withdrawal, you must:

Show proof of an outstanding loan from a Lockheed Martin Corporation Savings Plan, Submit a loan denial from an accredited banking institution that is less than six months old,

unless the Hardship Withdrawal is for the purchase of your primary residence and Take any other in-service withdrawals for which you are eligible, including withdrawals from your

After-Tax account balance. In addition, you cannot withdraw more than the amount required to meet your immediate financial need. You must certify and document that the funds you request are not reasonably available from any other source. IRS regulations provide that a Hardship Withdrawal may include amounts for the payment of federal and state taxes on the withdrawal, if you so request. In general, the following situations constitute a “heavy and immediate” financial need. In all cases you must provide appropriate documentation.

Unreimbursed medical expenses for you, your Spouse, your dependents or primary Beneficiary under the Plan.

Payment of expenses to prevent foreclosure on, or eviction from, your primary residence. Uninsured expenses directly related to a natural disaster or catastrophic event. Expenses directly related to institutionalizing you, your Spouse or your dependent(s) (but not

including detention centers, jails or prisons). Tuition (including room, board, books and fees) for the next 12 months of primary (grades 1-8),

secondary, or post-secondary education for you, your Spouse, your dependent(s) or primary Beneficiary under the Plan.

The need to replace your or your Spouse’s lost wages (net of any other benefits received, such as unemployment and Workers’ Compensation) due to an absence of pay for a period of at least four consecutive weeks.

The down payment, closing costs and other unreimbursed expenses related to the purchase, major renovation of, or repair of damage to your primary residence.

Expenses for the funeral for your Spouse, your dependent(s) or your primary Beneficiary under the Plan.

If you have designated a non-Spouse beneficiary as your primary Beneficiary under the Plan, you may make a Hardship Withdrawal to cover expenses for that Beneficiary as if he or she was your Spouse or dependent (as described above). Your primary Beneficiary is an individual whom you have named as Beneficiary under the Plan and has an unconditional right to all or a fraction of your account balance following your death. See the “Designating a Beneficiary” section for Beneficiary designation information.

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Taking a Hardship Withdrawal To apply for a Hardship Withdrawal, you can download a Hardship Withdrawal package from the Savings Plan Web Tool as well as information about any special documentation you will need to submit. Or, you can call the Savings Plan Information Line for assistance. If your application for a Hardship Withdrawal is modified or denied, you will receive a written explanation of the reason. If your Hardship Withdrawal is approved, the money will come out of your account in the following order:

After-Tax Contributions you made before January 1, 1987, without associated earnings. After-Tax Supplemental (unmatched) Contributions you made after December 31, 1986 but prior


1, 1997 and associated earnings. After-Tax Contributions you made after December 31, 1996 and associated earnings. Earnings attributable to the After-Tax Contributions you made before January 1, 1987. Rollover Contributions, and associated earnings. Investment income earned before 1989 on Before-Tax Contributions (current tax law provides

that post-1988 earnings in your Before-Tax accounts cannot be withdrawn before you reach age 59-1/2).

Before-Tax Supplemental (unmatched) Contributions Before-Tax Basic (matched) Contributions. For former Lockheed Corporation participants, Company Matching Contributions and associated

earnings prior to July 1989. Your Hardship Withdrawal will be subject to normal income taxes. If you are younger than age 59-1/2, you may be required to pay a 10% early withdrawal penalty, plus income tax, on the amount you withdraw. See the “Taxation of Distributions and Withdrawals” section for tax rules on withdrawals. NOTE: You also may apply for a Roth 401(k) Hardship Withdrawal to be taken directly from your Roth 401(k) Contributions. For more information on this type of Hardship Withdrawal, see the “Withdrawal Availability While Actively Employed” section of this SPD.

Withdrawing Your Account Balance After Age 59-1/2 If you are still working for the Company when you reach age 59-1/2, you may withdraw money from your Plan account without having to pay a 10% early withdrawal penalty. However, you may owe normal income taxes on this money. After reaching age 59-1/2, you may withdraw most funds from your account without demonstrating hardship and without suspending your contributions. This type of withdrawal can be made once every six months. If your withdrawal is approved, the money will come out of your account in the following order:

After-Tax Contributions you made before January 1, 1987 without associated earnings. After-Tax Supplemental (unmatched) Contributions you made after December 31, 1986 but prior


1, 1997 and associated earnings. After-Tax Contributions you made after December 31, 1986 and associated earnings. Earnings attributable to the After-Tax Contributions you made before January 1, 1987. Company Matching Contributions made before the first payroll period of the July 1989 accounting

month of Lockheed Corporation. Rollover Contributions and associated earnings.

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Investment income earned before January 1, 1989 on Before-Tax Contributions. Before-Tax Supplemental (unmatched) Contributions. Before-Tax Basic (matched) Contributions. Investment income earned after December 31, 1988 on Before-Tax Contributions.

NOTE: Certain types of matching contributions from acquired plans may also be available for withdrawal. Please contact the Savings Plan Information Line for more information. Company Matching Contributions and related earnings will be taxed as ordinary income when you withdraw them. If you are age 70-1/2 or older, you may withdraw any portion of your account at any time. NOTE: You also may apply for a Roth 401(k) 59-1/2 withdrawal to be taken directly from your Roth 401(k) Contributions. For more information on this type of Hardship Withdrawal, see the “Withdrawing Roth 401(k) Contributions” section of this SPD.

Withdrawing Roth 401(k) Contributions Your Roth 401(k) Contributions and associated earnings may be withdrawn tax-free once every six months if:

You are age 59-1/2 or older (or become disabled), and Your Roth 401(k) Contributions have been invested for at least five years since your first Roth

401(k) Contribution. If you don’t meet these criteria, the IRS will impose a 10% early withdrawal penalty as well as ordinary income taxes on investment earnings. The 10% early withdrawal penalty does not apply to a qualified reservist distribution.

Taxation of After-Tax Contributions Under current law, all of the After-Tax Contributions you made to the Plan before January 1, 1987 (your “Pre-1987 Basis”), may be withdrawn while you are an active employee with no tax consequences. If you make an After-Tax withdrawal, your “Pre-1987 Basis” will automatically be withdrawn first. Withdrawals of your After-Tax Contributions made after December 31, 1986 (your “Post-1986 Basis”), will be taxable, because tax laws require that the distribution include a pro-rata portion of your investment earnings on all After-Tax Contributions. The taxable portion of your withdrawal is based on the ratio of your remaining After-Tax Contributions to the total value of your After-Tax account (contributions plus earnings). In many cases, the IRS also imposes a 10% early withdrawal penalty on the taxable portion of your distribution. See the “Early Withdrawal Penalty” section for more information. The 10% early withdrawal penalty does not apply to a qualified reservist distribution.

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Withdrawal Availability While Actively Employed The following table summarizes the SSP withdrawals you may make from your account while actively employed, the sources available, and the available frequency of each type of withdrawal. NOTE: If you are married, spousal consent may be required for certain withdrawals. Please contact the Savings Plan Information Line for more information.

Withdrawal type Available sources Limits After-Tax withdrawal (without suspension)

Pre 1997 After-Tax Contributions and earnings

Four times in a 12-month period

After-Tax withdrawal (with six-month suspension of Company Matching Contributions)

Post-1996 After-Tax Contributions and earnings

For former Lockheed Corporation participants, Company Matching Contributions and associated earnings prior to July 1989

Four times in a 12 month period

Hardship withdrawal (without suspension)

All of the above plus: Rollover Contributions and

associated earnings Earnings on Before-Tax

Contributions credited before January 1, 1989

Supplemental Before-Tax Contributions

Basic Before-Tax Contributions

No limit to number of withdrawals

Withdrawal after age 59-1/2 (without suspension)

All of the above plus: Earnings after December 31,

1988 on Before-Tax Contributions

Once every six months

Roth 401(k) hardship withdrawal Roth 401(k) Contributions and earnings

No limit to the number of withdrawals

Roth 401(k) withdrawal after age 59-1/2

Roth 401(k) Contributions and associated earnings


NOTE: To determine how much you can withdraw, access the Savings Plan Web Tool or call the Savings Plan Information Line.

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Availability of Balances from Former Loral Plans The following former Loral plans were merged into the SSP on July 1, 1998: 1. Lockheed Martin Frequency Sources, Inc. 401(k) Retirement Savings Plan 2. Lockheed Martin Electro-Optical Systems 401(k) Matching Contribution Plan 3. Lockheed Martin ROLM Retirement Income Savings Plan 4. Lockheed Martin Tactical Systems Deferred Income Savings Plan 5. Lockheed Martin Defense Systems Savings & Investment Plan 6. Lockheed Martin Federal Systems Deferred Income Retirement Plan 7. Lockheed Martin Aerospace Savings Plan 8. Lockheed Martin Fairchild Corp. Savings Plan 9. Lockheed Martin Librascope Retirement Savings Plan 10. Lockheed Martin Tactical Defense Systems Savings Plan 11. Lockheed Martin Vought Systems Corporation Capital Accumulation Plan 12. Lockheed Martin IR Imaging Systems Savings Plan Your balances transferred from the former Loral plans are available for withdrawal from the SSP in accordance with the table below.

Withdrawal type Available sources Limits After-Tax withdrawal (without suspension)

After-Tax Contributions from plans 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11 and associated earnings, and

Rollover Contributions from plans 1, 2, 3, 4, 5, 6, 8, 10, 11 and 12 and associated earnings, and

Company Matching Contributions from plans 1, 2, 4, 5, 6, and 7 and associated earnings (includes prior ESOP contributions for plan 1 and associated earnings), and

Company Contributions from plans 7 and 11 and associated earnings, and

IRA Contributions from plan 11 and associated earnings.

Four non-hardship withdrawals per calendar year

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Withdrawal type Available sources Limits Hardship withdrawal (without suspension)

The sources listed above for regular withdrawals, and

Rollover Contributions from plans 7 and 9 and associated earnings, and

Before-Tax Contributions from all plans and associated earnings before January 1, 1989, and

Company Matching Contributions from plans 3, 9, 10 and 11 and associated earnings.

No limit to number of hardship withdrawals

59-1/2 Withdrawal (without suspension)

The sources listed above for withdrawals, and associated earnings after January 1, 1989 on Before-Tax Contributions from all plans, and

Rollover Contributions from plan 7, and

Company Matching Contributions from plans 8 and 12, and

Company Contributions from plans 8 and 11.


NOTE: To determine how much you can withdraw, access the Savings Plan Web Tool or call the Savings Plan Information Line.

Certain types of Matching Contributions from acquired plans may be available for withdrawal. Please contact the Savings Plan Information Line for more information.

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Distributions/Payments After Your Employment Ends When your employment with the Company ends due to termination of employment, retirement, layoff or long-term disability, you are entitled to the value of your account balance, including any investment earnings, less required income tax withholding. You will receive a termination distribution notice from the Recordkeeper shortly after your employment ends, which will provide you with a summary of your options and rights as a former employee of the Company.

Self-Directed Brokerage Accounts Distributions cannot be processed if you have assets in your SDBA. Before requesting an account distribution, you must first sell all of the assets in your SDBA. After the trade settlement period (generally three business days) you must transfer all of the proceeds into your Core Funds or Target Date Funds. After the transfer, your account balance can be distributed according to the terms of the Plan. Account Balances of $5,000 or Less Account Balance of $1,000 or less If your account balance is $1,000 or less when you leave the Company, the entire balance will be paid directly to you in a single lump sum within about six months after your service ends, unless you elect to have all or part of your balance directly rolled over to your new employer’s qualified plan or to an IRA of your choice. You will need to check with the new plan or IRA provider to determine if it will accept a Rollover. Account Balance over $1,000 but not greater than $5,000 If your account balance is over $1,000 but is not greater than $5,000, you can have the account balance paid directly to you in a single lump sum, or you can have all or part of your account balance rolled over to your new employer’s qualified plan or to an IRA of your choosing. Again, you will need to check with the new plan or IRA provider to determine whether it will accept Rollovers.

If you do not elect one of these options within six months after you terminate your service, your entire account balance will be rolled over automatically on your behalf into an IRA with Citibank, N.A. (a “Citibank Rollover IRA”). Roth 401(k) accounts are treated separately for this purpose. You will be the owner of the Citibank Rollover IRA established on your behalf. Rollovers to the Citibank IRA will initially be invested in the Citibank IRA Insured Money Market Account. This is an FDIC-insured investment product designed to preserve principal and provide a reasonable rate of return and liquidity. After the Rollover into a Citibank Rollover IRA, you may move funds from this investment product into other available FDIC-insured investments or you may establish a Citibank IRA Brokerage Account. The Citibank Rollover IRA does not currently have an annual fee. If you decide later to transfer all or part of your IRA assets from the Citibank Rollover IRA to a different IRA provider, a $75 transfer fee will be assessed. Fees and expenses are subject to change. Fees and expenses for the Citibank Rollover IRA, if any, will be taken from the proceeds of the transaction. NOTE: Your SSP Beneficiary designation is no longer valid once the money is rolled over to a Citibank Rollover IRA. Therefore, you will need to file a new Beneficiary designation with Citibank.

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These “automatic Rollover” provisions do not apply if your account balance is greater than $5,000 when you leave the Company. The automatic Rollover provisions also do not apply if you are either at normal retirement age when you terminate employment, or you are a Beneficiary or an alternate payee. For information on the automatic Rollover option, including fees and expenses, access the “Forms” section of the Savings Plan Web Tool and select “Citibank Rollover IRA Fact Sheet.” You also may contact Citibank directly at 800-695-5911 and speak with a customer service representative. Customer service representatives are available weekdays from 7:00 a.m. to 9:00 p.m. Eastern time, and Saturdays from 8:00 a.m. to 4:30 p.m. Eastern time, except on New York Stock Exchange holidays. For detailed information about the Citibank Rollover IRA product, log on to http://citibank.com. You may also write to Citibank at the following address:

Retirement Plan Services 100 Citibank Drive San Antonio, TX 78245

Account Balances Greater Than $5,000 If your account balance is greater than $5,000 when your employment with the Company ends for any reason other than death or on account of certain corporate transactions, you may continue to keep your money in the Plan up until the time any mandatory distribution is required – typically age 70-1/2. There is no requirement for you to transfer your account balance to an Individual Retirement Account or any other type of plan prior to that time. You may, however, request a distribution of the value of your account balance, less required income tax withholding (if any), at any time after your termination of employment. You will receive a termination distribution notice from the Recordkeeper shortly after your employment ends. This notice will provide you with a summary of your options and rights as a former employee of the Company. You can request to receive a distribution via the Savings Plan Web Tool or by calling the Savings Plan Information Line. Payment Options If your account balance is more than $5,000, you have five payment options available: lump sum, Rollover, installments, special retiree withdrawals and annuities. To request one of these payment options, access the Savings Plan Web Tool or call the Savings Plan Information Line.

1. You may elect to have your account balance paid as a single lump sum.

2. You may Rollover the taxable portion of your account balance directly into an IRA or a new employer’s qualified plan. (NOTE: After-Tax Contributions may be available for Rollover. Check with your IRA or new employer’s plan sponsor regarding their acceptance of After-Tax Rollovers.)

3. As early as age 55, you may choose to receive monthly or annual installment payments from your account over a period of up to 300 months (25 years). The total period over which installments are paid cannot be longer than either your estimated life expectancy (if you are single) or the joint life expectancies of you and your Spouse (if you are married). Monthly installment payments will be mailed to you on the last business day of each month. Annual installment payments will be mailed to you on the last business day of the month in which you elected the annual installment option.

http://citibank.com/

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The value of your monthly or annual payment(s) is calculated by dividing your total account balance by the number of months or years, respectively, of remaining payments. You also may request a withdrawal once every calendar year, in addition to your scheduled installment payments, or to receive your remaining account balance in a lump-sum payment at any time.

NOTE: If you return to work for the Company, installment payments will be suspended. When your employment subsequently ends, you must decide how you wish to receive your account balance. If you die before your account balance has been fully distributed, your beneficiary will receive the balance in a lump-sum payment.

4. If you have reached age 55 and have at least five years of service when your employment with the

Company ends, you are eligible for a special retiree withdrawal. You may take up to 12 withdrawals per year from your Plan account. If you have reached age 55 and have at least five years of service when your employment with the Company ends and have a Roth 401(k) balance, you are eligible for a Special Roth Retiree Withdrawal that you may take up to 12 times per year. Each withdrawal must be a minimum of $500 (or the balance of your account if less than $500).

5. A portion of your balance is considered to be part of the Money Purchase Component of the SSP or had annuity distribution rights from a prior plan. Unless you obtain spousal consent to receive these balances with your distribution request, you will receive an automatic annuity payment for them.

Funds subject to the annuity option include:

For all employees who become participants in this Plan after January 1, 1997: All

Company Matching Contributions made since that date (and earnings on those contributions) that are not invested in the ESOP Fund;

For former Lockheed participants: All Company Matching Contributions credited to your account after January 2, 1992 (and earnings on those contributions) that are not invested in the ESOP Fund; and

For former ORINCON and ISX participants: All Before-Tax, Rollover and Company Contributions and earnings on those contributions; and

For former Vought Systems and Fairchild Savings Plan Participants. Annuity options available to you under the above plans will remain available for your account balances previously transferred from these plans to the SSP.

With written spousal consent witnessed by a Notary Public, you can elect to have your account balance eligible for an annuity paid out with the rest of your account balance in:

A lump-sum payment, or A Rollover, or Monthly or annual installments after attainment of age 55.

The single life annuity pays you a monthly benefit for your lifetime. The 50% (or 75%) joint and survivor annuity pays a reduced monthly benefit for your lifetime and pays 50% or 75% (as applicable) of your reduced benefit to your Spouse after your death. The annuity will be purchased from an insurance company. The cost of purchasing the annuity will be charged against your SSP account.

If you want the Money Purchase Component of your account or your account balance eligible for an annuity to be paid in the same manner as the rest of your account balance, you must elect that option within 90 days of when you are to begin receiving annuity payments. If you are married, your Spouse must give written consent to your election to receive the Money Purchase Component or your account balance eligible for an annuity in a form other

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than an annuity. The consent must be witnessed by a Notary Public and is valid for only 90 days. If you remarry, your previous Spouse’s consent will no longer apply. If you elect a distribution option that provides multiple payments, there must be a valid spousal consent on file for each payment.

NOTE: If you have elected Payment Options 1, 3 or 4 above and have provided Banking Information, the payments to you will be made via Direct Deposit.

Retirement Consultants Voya Financial Advisors, Inc. retirement consultants can help you better understand your options. They will also take a look at your existing Plan, any other retirement accounts you may have, the money you’re making and the money you’re saving, then help you come up with a strategy that makes sense for you. Plus, you can continue to work with the same retirement consultant down the road.

Retirement consultants are knowledgeable about the benefits and features of your Plan and Individual Retirement Accounts (IRAs).

There is no additional fee for working with a retirement consultant. You can build an ongoing, one-on-one relationship with your retirement consultant, who will get to

know you and your personal situation. You have direct access to your retirement consultant via phone and email.

Call the Savings Plan Information Line and ask to speak to a Voya retirement consultant.

In the Event of Your Death If you are married at the time of your death, the value of your account balance will be paid to your Spouse. If you wish to name a Beneficiary other than your Spouse, you must have your Spouse’s consent in writing on the Beneficiary Designation form, and the form must be witnessed by a Notary Public. Special spousal consent rules apply to the Money Purchase Component of your account. If you are not married, your total account balance will be paid to the Beneficiary you designated. If you do not have a Beneficiary designation on record with the Recordkeeper, your account balance will be paid to your estate. See the “Survivor Benefits” section for additional details. Your Beneficiary will receive the money in a lump sum. If your Beneficiary is your Spouse, the lump sum will not include the Money Purchase Component, because that portion would be paid to your Spouse in an annuity, unless your Spouse elects another form of benefit. To request payment of your total account balance, your Beneficiary will need to contact the Savings Plan Information Line.

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Pre-Retirement Survivor Annuity If you are married and die before receiving the Money Purchase Component of your account (if any), your surviving Spouse will receive it as a pre-retirement survivor annuity. A pre-retirement survivor annuity pays a monthly benefit for the life of your Spouse. It is purchased from an insurance company with the Money Purchase Component of your account (if any). Any costs associated with the purchase of the annuity are charged against this distribution. You must have been married to your Spouse for at least one year before your death in order for your Spouse to be eligible for a survivor annuity. If you were not married for a full year, your Spouse (or beneficiary) will receive the Money Purchase Component in the same form of benefit as he or she receives the non-Money Purchase Component of your account. The pre-retirement survivor annuity will become payable at the time you would have reached age 65, or 90 days after your death, whichever is later, unless your surviving Spouse elects another form of benefit or to commence receipt earlier. This election must be submitted in writing. You may waive the pre-retirement survivor annuity any time after the first day of the year in which you attain age 35. However, if you are married, you will need your Spouse’s written consent to waive the pre-retirement survivor annuity. The consent must be witnessed by a Notary Public. If you remarry, your previous Spouse’s consent will no longer apply. Any Beneficiary you designate for your SSP will receive the Money Purchase Component as well as the non-Money Purchase Component portion of your account. To request payment of your total account balance, your Beneficiary will need to contact the Savings Plan Information Line.

Timing of Distributions Payments from the Plan generally are mailed within two business days after your request is received. The valuation date for your distribution is the business day the request is processed, as long as you request it before 4:00 p.m. Eastern time. For example, if you submit a request for payment on November 14, 2016, before 4:00 p.m. Eastern time, the request will be processed and valued that day. If you have invested in more than one fund and are not taking a total distribution, withdrawals will be prorated, by contribution type (Before-Tax, After-Tax, etc.), among each of the funds in which you have money at the time of your distribution.

Payments from the Company Common Stock Fund and the ESOP Fund Depending on your distribution election, your balances in the Company Common Stock Fund and the ESOP Fund may be distributed in either cash or shares of Lockheed Martin common stock. If you do not choose how you want the balances in the Company Common Stock and the ESOP Fund paid, you will receive the balances as cash automatically in accordance with the payment option you choose. If you choose to receive the balance as shares of Lockheed Martin Corporation common stock, your stock will be distributed in book-entry form through the Direct Registration System. More information will be provided when you request your distribution.

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Required Minimum Distributions If you are no longer employed by the Company and have reached age 70-1/2, the IRS requires you to begin receiving payments from your account. The payment of your Required Minimum Distribution will be made at the end of the year in which you turn age 70-1/2 or the year in which you terminate employment with the Company, whichever is later. You may receive your Required Minimum Distribution in:

A lump-sum payment. Annual installment payments to be paid over a period up to 13 years. (You will receive 1/13 of

your account the first year, 1/12 the second year, etc; you can elect to take the remaining balance in a lump-sum payment at any time.) Installment payments cannot be longer than your estimated life expectancy or the joint life expectancy of you and your Spouse (if married).

Annual installment payments of the minimum amount required by law. You may have to pay a 50% excise tax if the Required Minimum Distribution requirements are not met. If you do not elect a distribution option for your Required Minimum Distribution, it will be paid automatically as an annual installment payment in the minimum amount required by law.

Inability to Locate Payee If the Plan Administrator is unable to locate you or your Beneficiary to make a payment, the amount of the payment will be forfeited. The amount will be reinstated if and when you (or your Beneficiary) make a valid claim for the forfeited amount, or the Plan Administrator receives valid proof of death of that person.

Incompetence of Payee If a benefit is payable to someone who, in the sole judgment of the Plan Administrator, is incapable of handling the disposition of this property, the Trustee may make payment in whole or in part to an appropriate third party.

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Taxation of Distributions and Withdrawals When you receive a distribution or withdrawal, you must pay income taxes on the value of your Before-Tax Contributions, Company Matching Contributions, Company Contributions, Rollover Contributions and any investment earnings on these contributions, as well as on the earnings on your After-Tax Contributions. In many cases, 20% of your taxable distribution must be withheld for taxes. You also may have to pay a 10% early withdrawal penalty on your distribution. You also will be subject to a 10% penalty in addition to any applicable taxes if you withdraw your Roth 401(k) Contributions and earnings before holding the Roth 401(k) account for at least five years and if you are not at least age 59-1/2 at the time of the withdrawal (except if you die or become disabled). You may defer part or all of your taxes by initiating a Direct Rollover of the taxable portion of your account balance into another employer’s plan or an Individual Retirement Account (IRA). If you were born before January 1, 1936, you may be eligible for special 10-year averaging, which may reduce your tax liability.

Early Withdrawal Penalty When you withdraw money or receive a distribution from your Plan account, some or all of it may be subject to income taxes. In addition, the IRS may require you to pay a 10% early withdrawal penalty on the taxable part of your distribution. However, you will not have to pay the penalty if:

You separate from service with the Company during or after the year you reach age 55 and receive your account balance because you have terminated your employment,

You are at least age 59-1/2 when you receive the payment, whether or not you are actively employed,

Your account is paid because of your disability or death, The withdrawal is used to pay unreimbursed medical expenses that exceed 7-1/2% of your

adjusted gross income, The payment is made to someone else under a Qualified Domestic Relations Order (QDRO), The distribution is rolled over to an IRA or another employer’s qualified plan within 60 days, The distribution is part of a series of substantially equal periodic payments made for your life

expectancy or joint life expectancy for you and your Spouse (if married), or The distribution is a “qualified reservist distribution.”

The 10% penalty also applies if you withdraw your Roth 401(k) Contributions and earnings before they have been in the Plan for at least five years.

Mandatory Withholding Requirements Twenty percent will be withheld on most taxable withdrawals or distributions you receive—even if you plan to roll over your withdrawal or distribution (which you have 60 days to do). This 20% withholding is required by law as a partial payment of the income taxes you will owe on a taxable distribution. It does not include the additional 10% early withdrawal penalty you may have to pay the IRS. Because everyone’s financial situation is different and tax laws relating to retirement plans are complex, we urge you to get professional tax advice concerning your Plan distribution.

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The mandatory 20% withholding does not apply if:

You elect a Direct Rollover into another employer’s qualified plan, or you or your surviving Spouse elect a Direct Rollover into an Individual Retirement Account (IRA),

The total amount of your accumulated distributions is less than $200, You are 70-1/2 or older, are no longer working for the Company, and receive only the Required

Minimum Distribution from your account, You receive your Plan balance after retirement in “substantially equal” installment payments over

at least 10 years, Payments are made to someone other than you or your Spouse (or former Spouse, pursuant to a

Qualified Domestic Relations Order), or You elect a Hardship Withdrawal.

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Special Tax Notice Regarding Payment from the Plan This section contains important information you will need should you decide to receive your Plan benefits. It explains how your Plan benefits can continue to grow tax free by executing a “roll over” of those benefits If you have additional questions after reading this section, you can contact the Plan Administrator at:

Lockheed Martin Corporation Attn: Savings Plan Operations 6801 Rockledge Drive, CCT-115 Bethesda, MD 20817 Savings Plan Information Line 800-444-4015

Your Rollover Options

For Payments From Non-Roth Accounts

This section describes the rollover rules that apply to payments from the Plan that are not from a designated Roth account (a type of account with special tax rules in some employer plans). If you also receive a payment from a designated Roth account in the Plan, the section following this section provides information for that payment, and the Plan Administrator or the payor will tell you the amount that is being paid from each account. Rules that apply to most payments from a plan are described in the “General Information About Rollovers” section. Special rules that only apply in certain circumstances are described in the “Special Rules and Options” section.

GENERAL INFORMATION ABOUT ROLLOVERS How can a Rollover affect my taxes? You will be taxed on a payment from the Plan if you do not roll it over. If you are under age 59½- and do not do a Rollover, you will also have to pay a 10% additional income tax on early distributions (unless an exception applies). However, if you do a Rollover, you will not have to pay tax until you receive payments later and the 10% additional income tax will not apply if those payments are made after you are age 59½ (or if an exception applies). Where may I roll over the payment? You may roll over the payment to either an IRA (an individual retirement account or individual retirement annuity) or an employer plan (a tax-qualified plan, section 403(b) plan, or governmental section 457(b) plan) that will accept the Rollover. The rules of the IRA or employer plan that holds the Rollover will determine your investment options, fees, and rights to payment from the IRA or employer plan (for example, no spousal consent rules apply to IRAs and IRAs may not provide loans). Further, the amount rolled over will become subject to the tax rules that apply to the IRA or employer plan. How do I do a Rollover? There are two ways to do a Rollover. You can do either a direct Rollover or a 60-day Rollover. If you do a direct Rollover, the Plan will make the payment directly to your IRA or an employer plan. You should contact the IRA sponsor or the administrator of the employer plan for information on how to do a direct Rollover.

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If you do not do a direct Rollover, you may still do a Rollover by making a deposit into an IRA or eligible employer plan that will accept it. You will have 60 days after you receive the payment to make the deposit. If you do not do a direct Rollover, the Plan is required to withhold 20% of the payment for federal income taxes (up to the amount of cash and property received other than employer stock). This means that, in order to roll over the entire payment in a 60-day Rollover, you must use other funds to make up for the 20% withheld. If you do not roll over the entire amount of the payment, the portion not rolled over will be taxed and will be subject to the 10% additional income tax on early distributions if you are under age 59½ (unless an exception applies). How much may I roll over? If you wish to do a Rollover, you may roll over all or part of the amount eligible for Rollover. Any payment from the Plan is eligible for Rollover, except:

• Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the lives or joint life expectancy of you and your Beneficiary)

• Required minimum distributions after age 70½; (or after death) • Hardship distributions • ESOP dividends • Corrective distributions of contributions that exceed tax law limitations • Loans treated as deemed distributions (for example, loans in default due to missed payments

before your employment ends) • Payments of certain automatic enrollment contributions requested to be withdrawn within 90 days

of the first contribution.

The Plan Administrator or the payor can tell you what portion of a payment is eligible for Rollover. If I don’t do a Rollover, will I have to pay the 10% additional income tax on early distributions? If you are under age 59½, you will have to pay the 10% additional income tax on early distributions for any payment from the Plan (including amounts withheld for income tax) that you do not roll over, unless one of the exceptions listed below applies. This tax is in addition to the regular income tax on the payment not rolled over. The 10% additional income tax does not apply to the following payments from the Plan:

• Payments made after you separate from service if you will be at least age 55 in the year of the separation

• Payments that start after you separate from service if paid at least annually in equal or close to equal amounts over your life or life expectancy (or the lives or joint life expectancy of you and your Beneficiary)

• Payments made due to disability • Payments after your death • Payments of ESOP dividends • Corrective distributions of contributions that exceed tax law limitations • Payments made directly to the government to satisfy a federal tax levy • Payments made under a qualified domestic relations order (QDRO) • Payments up to the amount of your deductible medical expenses • Certain payments made while you are on active duty if you were a member of a reserve

component called to duty after September 11, 2001 for more than 179 days • Payments of certain automatic enrollment contributions requested to be withdrawn within 90 days

of the first contribution.

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If I do a Rollover to an IRA, will the 10% additional income tax apply to early distributions from the IRA? If you receive a payment from an IRA when you are under age 59½, you will have to pay the 10% additional income tax on early distributions from the IRA, unless an exception applies. In general, the exceptions to the 10% additional income tax for early distributions from an IRA are the same as the exceptions listed above for early distributions from a plan. However, there are a few differences for payments from an IRA, including:

• There is no exception for payments after separation from service that are made after age 55. • The exception for qualified domestic relations orders (QDROs) does not apply (although a special

rule applies under which, as part of a divorce or separation agreement, a tax-free transfer may be made directly to an IRA of a spouse or former spouse).

• The exception for payments made at least annually in equal or close to equal amounts over a specified period applies without regard to whether you have had a separation from service.

• There are additional exceptions for (1) payments for qualified higher education expenses, (2) payments up to $10,000 used in a qualified first-time home purchase, and (3) payments for health insurance premiums after you have received unemployment compensation for 12 consecutive weeks (or would have been eligible to receive unemployment compensation but for self-employed status).

Will I owe State income taxes? This notice does not describe any State or local income tax rules (including withholding rules).

SPECIAL RULES AND OPTIONS

If your payment includes after-tax contributions After-tax contributions included in a payment are not taxed. If a payment is only part of your benefit, an allocable portion of your after-tax contributions is included in the payment, so you cannot take a payment of only after-tax contributions. However, if you have pre-1987 after-tax contributions maintained in a separate account, a special rule may apply to determine whether the after-tax contributions are included in a payment. In addition, special rules apply when you do a rollover, as described below. You may roll over to an IRA a payment that includes after-tax contributions through either a direct Rollover or a 60-day Rollover. You must keep track of the aggregate amount of the after-tax contributions in all of your IRAs (in order to determine your taxable income for later payments from the IRAs). If you do a direct Rollover of only a portion of the amount paid from the Plan and at the same time the rest is paid to you, the portion directly rolled over consists first of the amount that would be taxable if not rolled over. For example, assume you are receiving a distribution of $12,000, of which $2,000 is after-tax contributions. In this case, if you directly roll over $10,000 to an IRA that is not a Roth IRA, no amount is taxable because the $2,000 amount not directly rolled over is treated as being after-tax contributions. If you do a direct Rollover of the entire amount paid from the Plan to two or more destinations at the same time, you can choose which destination receives the after-tax contributions. If you do a 60-day Rollover to an IRA of only a portion of a payment made to you, the after-tax contributions are treated as rolled over last. For example, assume you are receiving a distribution of $12,000, of which $2,000 is after-tax contributions, and no part of the distribution is directly rolled over. In this case, if you roll over $10,000 to an IRA that is not a Roth IRA in a 60-day Rollover, no amount is taxable because the $2,000 amount not rolled over is treated as being after-tax contributions. You may roll over to an employer plan all of a payment that includes after-tax contributions, but only through a direct Rollover (and only if the receiving plan separately accounts for after-tax contributions and is not a governmental section 457(b) plan). You can do a 60-day Rollover to an employer plan of part of a payment that includes after-tax contributions, but only up to the amount of the payment that would be taxable if not rolled over.

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If you miss the 60-day Rollover deadline Generally, the 60-day Rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under certain extraordinary circumstances, such as when external events prevented you from completing the Rollover by the 60-day Rollover deadline. To apply for a waiver, you must file a private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs). If your payment includes employer stock that you do not roll over If you do not do a Rollover, you can apply a special rule to payments of employer stock (or other employer securities) that are either attributable to after-tax contributions or paid in a lump sum after separation from service (or after age 59½, disability, or the participant’s death). Under the special rule, the net unrealized appreciation on the stock will not be taxed when distributed from the Plan and will be taxed at capital gain rates when you sell the stock. Net unrealized appreciation is generally the increase in the value of employer stock after it was acquired by the Plan. If you do a Rollover for a payment that includes employer stock (for example, by selling the stock and rolling over the proceeds within 60 days of the payment), the special rule relating to the distributed employer stock will not apply to any subsequent payments from the IRA or employer plan. The Plan Administrator can tell you the amount of any net unrealized appreciation. If you have an outstanding loan that is being offset If you have an outstanding loan from the Plan, your Plan benefit may be offset by the amount of the loan, typically when your employment ends. The loan offset amount is treated as a distribution to you at the time of the offset and will be taxed (including the 10% additional income tax on early distributions, unless an exception applies) unless you do a 60-day Rollover in the amount of the loan offset to an IRA or employer plan. If you were born on or before January 1, 1936 If you were born on or before January 1, 1936 and receive a lump sum distribution that you do not roll over, special rules for calculating the amount of the tax on the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income. If you roll over your payment to a Roth IRA If you roll over a payment from the Plan to a Roth IRA, a special rule applies under which the amount of the payment rolled over (reduced by any after-tax amounts) will be taxed. However, the 10% additional income tax on early distributions will not apply (unless you take the amount rolled over out of the Roth IRA within 5 years, counting from January 1 of the year of the rollover). If you roll over the payment to a Roth IRA, later payments from the Roth IRA that are qualified distributions will not be taxed (including earnings after the rollover). A qualified distribution from a Roth IRA is a payment made after you are age 59½ (or after your death or disability, or as a qualified first-time homebuyer distribution of up to $10,000) and after you have had a Roth IRA for at least 5 years. In applying this 5-year rule, you count from January 1 of the year for which your first contribution was made to a Roth IRA. Payments from the Roth IRA that are not qualified distributions will be taxed to the extent of earnings after the rollover, including the 10% additional income tax on early distributions (unless an exception applies). You do not have to take required minimum distributions from a Roth IRA during your lifetime. For more information, see IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), and IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). If you do a Rollover to a designated Roth account in the Plan You cannot roll over a distribution to a designated Roth account in another employer’s plan. However, you can roll the distribution over into a designated Roth account in the distributing Plan. If you roll over a payment from the Plan to a designated Roth account in the Plan, the amount of the payment rolled over (reduced by any after-tax amounts directly rolled over) will be taxed. However, the 10% additional tax on early distributions will not apply (unless you take the amount rolled over out of the designated Roth account within the 5 year period that begins on January 1 of the year of the rollover).

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If you roll over the payment to a designated Roth account in the same plan, later payments from the designated Roth account that are qualified distributions will not be taxed (including earnings after the rollover). A qualified distribution from a designated Roth account is a payment made both after you are age 59½ (or after your death or disability) and after you have had a designated Roth account in the plan for at least 5 years. In applying this 5-year rule, you count from January 1 of the year your first contribution was made to the designated Roth account. However, if you made a direct Rollover to a designated Roth account in the plan from a designated Roth account in a plan of another employer, the 5-year period begins on January 1 of the year you made the first contribution to the designated Roth account in the Plan, or, if earlier, to the designated Roth account in the plan of the other employer. Payments from the designated Roth account that are not qualified distributions will be taxed to the extent of earnings after the Rollover, including the 10% additional tax on early distributions (unless an exception applies). If you are not a plan participant Payments after death of the participant. If you receive a distribution after the participant’s death that you do not roll over, the distribution will generally be taxed in the same manner described elsewhere in this notice. However, the 10% additional income tax on early distributions does not apply, and the special rule described under the section “If you were born on or before January 1, 1936” applies only if the participant was born on or before January 1, 1936.

If you are a surviving spouse If you receive a payment from the Plan as the surviving spouse of a deceased participant, you have the same Rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to do a Rollover to an IRA, you may treat the IRA as your own or as an inherited IRA. An IRA you treat as your own is treated like any other IRA of yours, so that payments made to you before you are age 59½ will be subject to the 10% additional income tax on early distributions (unless an exception applies) and required minimum distributions from your IRA do not have to start until after you are age 70½. If you treat the IRA as an inherited IRA, payments from the IRA will not be subject to the 10% additional income tax on early distributions. However, if the participant had started taking required minimum distributions, you will have to receive required minimum distributions from the inherited IRA. If the participant had not started taking required minimum distributions from the Plan, you will not have to start receiving required minimum distributions from the inherited IRA until the year the participant would have been age 70½. If you are a surviving Beneficiary other than a spouse If you receive a payment from the Plan because of the participant’s death and you are a designated Beneficiary other than a surviving spouse, the only Rollover option you have is to do a direct Rollover to an inherited IRA. Payments from the inherited IRA will not be subject to the 10% additional income tax on early distributions. You will have to receive required minimum distributions from the inherited IRA.

Payments under a qualified domestic relations order. If you are the spouse or former spouse of the participant who receives a payment from the Plan under a qualified domestic relations order (QDRO), you generally have the same options the participant would have (for example, you may roll over the payment to your own IRA or an eligible employer plan that will accept it). Payments under the QDRO will not be subject to the 10% additional income tax on early distributions.

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If you are a nonresident alien If you are a nonresident alien and you do not do a direct Rollover to a U.S. IRA or U.S. employer plan, instead of withholding 20%, the Plan is generally required to withhold 30% of the payment for federal income taxes. If the amount withheld exceeds the amount of tax you owe (as may happen if you do a 60-day Rollover), you may request an income tax refund by filing Form 1040NR and attaching your Form 1042-S. See Form W-8BEN for claiming that you are entitled to a reduced rate of withholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for Aliens, and IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

OTHER SPECIAL RULES If a payment is one in a series of payments for less than 10 years, your choice whether to make a direct Rollover will apply to all later payments in the series (unless you make a different choice for later payments). If your payments for the year are less than $200 (not including payments from a designated Roth account in the Plan), the Plan is not required to allow you to do a direct Rollover and is not required to withhold for federal income taxes. However, you may do a 60-day Rollover. Unless you elect otherwise, a mandatory cashout of more than $1,000 (not including payments from a designated Roth account in the Plan) will be directly rolled over to an IRA chosen by the Plan Administrator or the payor. A mandatory cashout is a payment from a plan to a participant made before age 62 (or normal retirement age, if later) and without consent, where the participant’s benefit does not exceed $5,000 (not including any amounts held under the plan as a result of a prior rollover made to the plan). You may have special Rollover rights if you recently served in the U.S. Armed Forces. For more information, see IRS Publication 3, Armed Forces’ Tax Guide. FOR MORE INFORMATION You may wish to consult with the Plan Administrator or payor, or a professional tax advisor, before taking a payment from the Plan. Also, you can find more detailed information on the federal tax treatment of payments from employer plans in: IRS Publication 575, Pension and Annuity Income; IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs); IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs); and IRS Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). These publications are available from a local IRS office, on the web at www.irs.gov, or by calling 1-800-TAX-FORM.

Your Rollover Options For Payments From Roth Accounts

This section describes the Rollover rules that apply to payments from the Plan that are from a designated Roth account. If you also receive a payment from the Plan that is not from a designated Roth account, the previous section describes that payment, and the Plan Administrator or the payor will tell you the amount that is being paid from each account. Rules that apply to most payments from a designated Roth account are described in the “General Information About Rollovers” section. Special rules that only apply in certain circumstances are described in the “Special Rules and Options” section.

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GENERAL INFORMATION ABOUT ROLLOVERS How can a Rollover affect my taxes? After-tax contributions included in a payment from a designated Roth account are not taxed, but earnings might be taxed. The tax treatment of earnings included in the payment depends on whether the payment is a qualified distribution. If a payment is only part of your designated Roth account, the payment will include an allocable portion of the earnings in your designated Roth account. If the payment from the Plan is not a qualified distribution and you do not do a Rollover to a Roth IRA or a designated Roth account in an employer plan, you will be taxed on the earnings in the payment. If you are under age 59½, a 10% additional income tax on early distributions will also apply to the earnings (unless an exception applies). However, if you do a Rollover, you will not have to pay taxes currently on the earnings and you will not have to pay taxes later on payments that are qualified distributions. If the payment from the Plan is a qualified distribution, you will not be taxed on any part of the payment even if you do not do a Rollover. If you do a Rollover, you will not be taxed on the amount you roll over and any earnings on the amount you roll over will not be taxed if paid later in a qualified distribution. A qualified distribution from a designated Roth account in the Plan is a payment made after you are age 59½ (or after your death or disability) and after you have had a designated Roth account in the Plan for at least 5 years. In applying the 5-year rule, you count from January 1 of the year your first contribution was made to the designated Roth account. However, if you did a direct Rollover to a designated Roth account in the Plan from a designated Roth account in another employer plan, your participation will count from January 1 of the year your first contribution was made to the designated Roth account in the Plan or, if earlier, to the designated Roth account in the other employer plan. Where may I roll over the payment? You may roll over the payment to either a Roth IRA (a Roth individual retirement account or Roth individual retirement annuity) or a designated Roth account in an employer plan (a tax-qualified plan or section 403(b) plan) that will accept the Rollover. The rules of the Roth IRA or employer plan that holds the Rollover will determine your investment options, fees, and rights to payment from the Roth IRA or employer plan (for example, no spousal consent rules apply to Roth IRAs and Roth IRAs may not provide loans). Further, the amount rolled over will become subject to the tax rules that apply to the Roth IRA or the designated Roth account in the employer plan. In general, these tax rules are similar to those described elsewhere in this notice, but differences include:

• If you do a Rollover to a Roth IRA, all of your Roth IRAs will be considered for purposes of determining whether you have satisfied the 5-year rule (counting from January 1 of the year for which your first contribution was made to any of your Roth IRAs).

• If you do a Rollover to a Roth IRA, you will not be required to take a distribution from the Roth

IRA during your lifetime and you must keep track of the aggregate amount of the after-tax contributions in all of your Roth IRAs (in order to determine your taxable income for later Roth IRA payments that are not qualified distributions).

• Eligible Rollover distributions from a Roth IRA can only be rolled over to another Roth IRA.

How do I do a Rollover? There are two ways to do a Rollover. You can either do a direct Rollover or a 60-day Rollover. If you do a direct Rollover, the Plan will make the payment directly to your Roth IRA or designated Roth account in an employer plan. You should contact the Roth IRA sponsor or the administrator of the employer plan for information on how to do a direct Rollover.

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If you do not do a direct Rollover, you may still do a Rollover by making a deposit within 60 days into a Roth IRA, whether the payment is a qualified or nonqualified distribution. In addition, you can do a Rollover by making a deposit within 60 days into a designated Roth account in an employer plan if the payment is a nonqualified distribution and the Rollover does not exceed the amount of the earnings in the payment. You cannot do a 60-day Rollover to an employer plan of any part of a qualified distribution. If you receive a distribution that is a nonqualified distribution and you do not roll over an amount at least equal to the earnings allocable to the distribution, you will be taxed on the amount of those earnings not rolled over, including the 10% additional income tax on early distributions if you are under age 59½ (unless an exception applies). If you do a direct Rollover of only a portion of the amount paid from the Plan and a portion is paid to you at the same time, the portion directly rolled over consists first of earnings. If you do not do a direct Rollover and the payment is not a qualified distribution, the Plan is required to withhold 20% of the earnings for federal income taxes (up to the amount of cash and property received other than employer stock). This means that, in order to roll over the entire payment in a 60-day rollover to a Roth IRA, you must use other funds to make up for the 20% withheld. How much may I roll over? If you wish to do a Rollover, you may roll over all or part of the amount eligible for Rollover. Any payment from the Plan is eligible for Rollover, except:

• Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the lives or joint life expectancy of you and your Beneficiary)

• Required minimum distributions after age 70½ (or after death) • Hardship distributions • ESOP dividends • Corrective distributions of contributions that exceed tax law limitations • Loans treated as deemed distributions (for example, loans in default due to missed payments

before your employment ends) • Payments of certain automatic enrollment contributions requested to be withdrawn within 90 days

of the first contribution • Amounts treated as distributed because of a prohibited allocation of S corporation stock under an

ESOP The Plan Administrator or the payor can tell you what portion of a payment is eligible for Rollover. If I don’t do a Rollover, will I have to pay the 10% additional income tax on early distributions? If a payment is not a qualified distribution and you are under age 59½, you will have to pay the 10% additional income tax on early distributions with respect to the earnings allocated to the payment that you do not roll over (including amounts withheld for income tax), unless one of the exceptions listed below applies. This tax is in addition to the regular income tax on the earnings not rolled over. The 10% additional income tax does not apply to the following payments from the Plan:

• Payments made after you separate from service if you will be at least age 55 in the year of the separation

• Payments that start after you separate from service if paid at least annually in equal or close to equal amounts over your life or life expectancy (or the lives or joint life expectancy of you and your Beneficiary)

• Payments made due to disability • Payments after your death • Payments of ESOP dividends • Corrective distributions of contributions that exceed tax law limitations • Payments made directly to the government to satisfy a federal tax levy

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• Payments made under a qualified domestic relations order (QDRO) • Payments up to the amount of your deductible medical expenses • Certain payments made while you are on active duty if you were a member of a reserve

component called to duty after September 11, 2001 for more than 179 days • Payments of certain automatic enrollment contributions requested to be withdrawn within 90 days

of the first contribution. If I do a Rollover to a Roth IRA, will the 10% additional income tax apply to early distributions from the IRA? If you receive a payment from a Roth IRA when you are under age 59½, you will have to pay the 10% additional income tax on early distributions on the earnings paid from the Roth IRA, unless an exception applies or the payment is a qualified distribution. In general, the exceptions to the 10% additional income tax for early distributions from a Roth IRA listed above are the same as the exceptions for early distributions from a plan. However, there are a few differences for payments from a Roth IRA, including:

• There is no special exception for payments after separation from service. • The exception for qualified domestic relations orders (QDROs) does not apply (although a special

rule applies under which, as part of a divorce or separation agreement, a tax-free transfer may be made directly to a Roth IRA of a spouse or former spouse).

• The exception for payments made at least annually in equal or close to equal amounts over a specified period applies without regard to whether you have had a separation from service.

• There are additional exceptions for (1) payments for qualified higher education expenses, (2) payments up to $10,000 used in a qualified first-time home purchase, and (3) payments for health insurance premiums after you have received unemployment compensation for 12 consecutive weeks (or would have been eligible to receive unemployment compensation but for self-employed status).

Will I owe State income taxes? This notice does not describe any State or local income tax rules (including withholding rules).

SPECIAL RULES AND OPTIONS If you miss the 60-day Rollover deadline Generally, the 60-day Rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under certain extraordinary circumstances, such as when external events prevented you from completing the Rollover by the 60-day Rollover deadline. To apply for a waiver, you must file a private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs). If your payment includes employer stock that you do not roll over If you receive a payment that is not a qualified distribution and you do not roll it over, you can apply a special rule to payments of employer stock (or other employer securities) that are paid in a lump sum after separation from service (or after age 59½, disability, or the participant’s death). Under the special rule, the net unrealized appreciation on the stock included in the earnings in the payment will not be taxed when distributed to you from the Plan and will be taxed at capital gain rates when you sell the stock. If you do a rollover to a Roth IRA for a nonqualified distribution that includes employer stock (for example, by selling the stock and rolling over the proceeds within 60 days of the distribution), you will not have any taxable income and the special rule relating to the distributed employer stock will not apply to any subsequent payments from the Roth IRA or employer plan. Net unrealized appreciation is generally the increase in the value of the employer stock after it was acquired by the Plan. The Plan Administrator can tell you the amount of any net unrealized appreciation.

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If you receive a payment that is a qualified distribution that includes employer stock and you do not roll it over, your basis in the stock (used to determine gain or loss when you later sell the stock) will equal the fair market value of the stock at the time of the payment from the Plan. If you have an outstanding loan that is being offset If you have an outstanding loan from the Plan, your Plan benefit may be offset by the amount of the loan, typically when your employment ends. The loan offset amount is treated as a distribution to you at the time of the offset and, if the distribution is a nonqualified distribution, the earnings in the loan offset will be taxed (including the 10% additional income tax on early distributions, unless an exception applies) unless you do a 60-day rollover in the amount of the earnings in the loan offset to a Roth IRA or designated Roth account in an employer plan. If you receive a nonqualified distribution and you were born on or before January 1, 1936 If you were born on or before January 1, 1936, and receive a lump sum distribution that is not a qualified distribution and that you do not roll over, special rules for calculating the amount of the tax on the earnings in the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income. If you are not a plan participant Payments after death of the participant. If you receive a distribution after the participant’s death that you do not roll over, the distribution will generally be taxed in the same manner described elsewhere in this notice. However, whether the payment is a qualified distribution generally depends on when the participant first made a contribution to the designated Roth account in the Plan. Also, the 10% additional income tax on early distributions and the special rules for public safety officers do not apply, and the special rule described under the section “If you receive a nonqualified distribution and you were born on or before January 1, 1936” applies only if the participant was born on or before January 1, 1936.

If you are a surviving spouse. If you receive a payment from the Plan as the surviving spouse of a deceased participant, you have the same Rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to do a Rollover to a Roth IRA, you may treat the Roth IRA as your own or as an inherited Roth IRA. A Roth IRA you treat as your own is treated like any other Roth IRA of yours, so that you will not have to receive any required minimum distributions during your lifetime and earnings paid to you in a nonqualified distribution before you are age 59½ will be subject to the 10% additional income tax on early distributions (unless an exception applies).

If you treat the Roth IRA as an inherited Roth IRA, payments from the Roth IRA will not be subject to the 10% additional income tax on early distributions. An inherited Roth IRA is subject to required minimum distributions. If the participant had started taking required minimum distributions from the Plan, you will have to receive required minimum distributions from the inherited Roth IRA. If the participant had not started taking required minimum distributions, you will not have to start receiving required minimum distributions from the inherited Roth IRA until the year the participant would have been age 70½.

If you are a surviving Beneficiary other than a spouse. If you receive a payment from the Plan because of the participant’s death and you are a designated Beneficiary other than a surviving spouse, the only Rollover option you have is to do a direct Rollover to an inherited Roth IRA. Payments from the inherited Roth IRA, even if made in a nonqualified distribution, will not be subject to the 10% additional income tax on early distributions. You will have to receive required minimum distributions from the inherited Roth IRA.

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Payments under a qualified domestic relations order. If you are the spouse or a former spouse of the participant who receives a payment from the Plan under a qualified domestic relations order (QDRO), you generally have the same options the participant would have (for example, you may roll over the payment as described in this notice). If you are a nonresident alien If you are a nonresident alien and you do not do a direct Rollover to a U.S. IRA or U.S. employer plan, instead of withholding 20%, the Plan is generally required to withhold 30% of the payment for federal income taxes. If the amount withheld exceeds the amount of tax you owe (as may happen if you do a 60-day Rollover), you may request an income tax refund by filing Form 1040NR and attaching your Form 1042-S. See Form W-8BEN for claiming that you are entitled to a reduced rate of withholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for Aliens, and IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

OTHER SPECIAL RULES

If a payment is one in a series of payments for less than 10 years, your choice whether to make a direct Rollover will apply to all later payments in the series (unless you make a different choice for later payments). If your payments for the year (only including payments from the designated Roth account in the Plan) are less than $200, the Plan is not required to allow you to do a direct Rollover and is not required to withhold for federal income taxes. However, you can do a 60-day rollover. Unless you elect otherwise, a mandatory cashout from the designated Roth account in the Plan of more than $1,000 will be directly rolled over to a Roth IRA chosen by the Plan Administrator or the payor. A mandatory cashout is a payment from a plan to a participant made before age 62 (or normal retirement age, if later) and without consent, where the participant’s benefit does not exceed $5,000 (not including any amounts held under the plan as a result of a prior rollover made to the plan). You may have special Rollover rights if you recently served in the U.S. Armed Forces. For more information, see IRS Publication 3, Armed Forces’ Tax Guide. For More Information You may wish to consult with the Plan Administrator or payor, or a professional tax advisor, before taking a payment from the Plan. Also, you can find more detailed information on the federal tax treatment of payments from employer plans in: IRS Publication 575, Pension and Annuity Income; IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs); IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs); and IRS Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). These publications are available from a local IRS office, on the web at www.irs.gov, or by calling 1-800-TAX-FORM.

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Survivor Benefits

To Report the Death of a Participant When a participant dies, the death must be reported to the Recordkeeper by calling the Savings Plan Information Line. Once your death is reported, your Beneficiary will receive information and instructions. If you do not have a Beneficiary on file when you die, information will be mailed to the person reporting your death. The Company is required to follow your properly completed and received Beneficiary designation, so it is important for you to keep the information current. It is your responsibility to keep your Beneficiary designation up to date. To confirm the Beneficiary information you have on file, access the Savings Plan Web Tool or call the Savings Plan Information Line. Be sure to keep a copy of your Beneficiary designation. The section titled “In the Event of Your Death” earlier in this document contains more information. NOTE: If a distribution election is not made by your Beneficiary, your account will be automatically distributed as a taxable event at the end of the third month after the Beneficiary account has been established.

Privacy Statement Lockheed Martin respects your right to privacy and recognizes the trust placed in us to keep information about your savings plan secure and confidential. We do not disclose any nonpublic personal information about our savings plan participants or former participants to anyone, except as permitted or required by law. We disclose information to companies that perform the savings plan administration. We may disclose limited information to auditors or Labor Relations when there is an approved business or legal justification. These entities are required to adhere to our privacy and security standards and to use the information for the limited purpose for which it was shared. We restrict access to nonpublic personal information about you to those employees and persons who need to know the information. We maintain physical, electronic, and procedural safeguards in compliance with federal regulations to safeguard your nonpublic personal information. Except in response to a court order, government, civil, or criminal subpoena requiring personal information disclosure, if we ever decide to share your nonpublic personal information other than as described above, we will provide you with a notice informing you of the change. Additionally when required by applicable law, we will allow time for you to choose whether you want the information shared.

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Administrative Information Administration The information in this section may be helpful if you need to ask questions about the Plan. This booklet describes the Plan as of January 1, 2016. If there is any discrepancy between a description in this summary and the official Plan document, the official Plan document will govern. Official Plan Name and Number The official name of the Plan is the Lockheed Martin Corporation Salaried Savings Plan, which is identified by the plan number 017. Employer Identification Number The IRS has given Lockheed Martin Corporation the employer identification number 52-1893632. Plan Sponsor and Administrator Lockheed Martin Corporation is the Plan Sponsor and Plan Administrator of the Plan. You can reach the Plan Sponsor and Administrator at:

Lockheed Martin Corporation Attn: Savings Plan Operations 6801 Rockledge Drive, CCT-115 Bethesda, MD 20817 301-548-2320

For day-to-day questions, call the Savings Plan Information Line at 800-444-4015. TDD Access: 800-579-5708. Trustee Assets of the Plan, other than the 401(h), are held in a master trust established by the Company. The Plan Trustee is:

State Street Bank and Trust Company P.O. Box 5166 Boston, MA 02206-5166 800-444-4015

Among other things, the Plan Trustee will be responsible for voting shares of Company common stock held by the Plan in the Company Common Stock Fund and ESOP Fund on matters directed to the Company’s shareholders in accordance with participants’ direction. The Plan has a 401(h) account funded by company contributions to be used to pay certain retiree medical expenses. The 401(h) account is held in a trust at The Northern Trust Company.

The Northern Trust Company 50 South LaSalle Street Chicago, IL 60675 312-630-6000

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The Company has appointed Lockheed Martin Investment Management Company with responsibility to appoint investment managers and to make directions to the Trustee. Confidentiality To preserve the confidentiality of participant voting, exchange, and investment directions with respect to shares of Company common stock, participants provide such directions to third parties and not to Lockheed Martin Corporation. Lockheed Martin Corporation, located at 6801 Rockledge Drive, CCT-115, Bethesda, MD 20817, 301-548-2320 is responsible for ensuring that there are procedures in place for maintaining the confidentiality of such directions, subject to the requirements of federal securities or other laws. Plan Year Plan records are kept on a calendar year basis beginning January 1 and ending on December 31 each year. Agent for Service of Legal Process Service of legal process relating to the Plan should be delivered to the Plan Administrator or the Plan Trustee at their respective addresses shown on the previous page. Claims Determinations Claims determinations are made by the Plan Administrator (Lockheed Martin Corporation) or designee. The responsibility for deciding appeals of denied claims has been delegated to an Administrative Committee. In carrying out these functions, the Plan Administrator or designee (generally the applicable Administrative Committee) has the full discretionary authority to interpret and construe the terms of the Plan, to decide questions related to eligibility to participate or the payment of benefits under the Plan, and to make related findings of fact. The decision of the Plan Administrator or designee shall be final and binding to the full extent permitted by law. Applying for Benefits To apply for benefits, call the Savings Plan Information Line at 800-444-4015. For TDD communication services for the hearing impaired, call 800-579-5708. Claims Procedures The Plan Administrator has 90 days from the date your claim is received to determine what, if any, benefits are payable under the Plan. The Plan Administrator may require more time to review your claim, if needed due to circumstances beyond its control. If this happens, the Plan Administrator will notify you in writing before the end of the original period that its review period has been extended for up to 90 days. If this extension is made because you must provide more information, this extension will begin when the additional information is received. If your claim is approved, you will receive the appropriate benefit from the Plan.

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If your claim is denied, you will be notified in writing within the time periods outlined above. The notice will state the following, as applicable:

Specific reasons for denial, Plan provisions that support the denial, A description of any additional information needed to review your claim request, and Instructions for requesting a review of your claim denial and the applicable time limits, including

information regarding your right to bring a civil lawsuit under section 502(a) of ERISA following an adverse benefit determination on review.

If disagreements arise about your Plan eligibility or benefits, we hope we can resolve them quickly and informally. However, if that is not possible, you may file a written claim with the Plan Administrator. If your claim is denied in whole or part, you have the right to request a review of (or “appeal”) the decision. You or your authorized representative must make a written request for review to the Administrative Committee within 60 days from the date you receive the claims denial. If you do not request a review within that time, you will have waived your right to appeal. You may file an appeal by contacting:

Lockheed Martin Corporation Attn: Savings Plan Operations 6801 Rockledge Drive, CCT-115 Bethesda, MD 20817 301-548-2320

The Administrative Committee’s review will take into account all comments, documents, records and other information you submit relating to the claim, whether or not such information was submitted or considered in the initial benefit determination. If you wish, you (or your authorized representative) may review the appropriate plan documents and submit written information supporting your claim to the Administrative Committee. You will be provided, upon request and free of charge, reasonable access to and copies of all documents, records, or other information relevant to your claim for benefits. The Administrative Committee has 60 days from the date it received your request to review your claim and notify you of a decision. Under special circumstances, the Administrative Committee may need more time to review your claim. If this happens, you will be notified in writing before the end of the original 60-day period that the review period has been extended for up to an additional 60 days. Once the review is complete, the Administrative Committee will notify you, in writing, of the results of the review and the Plan provisions upon which the decision is based. If your claim is denied on review, in whole or part, you will receive a written notice from the Administrative Committee within the review period outlined above. The notice will include the following, as applicable:

The specific reasons for the decision, Reference to the specific Plan provisions upon which the decision is based, A statement that you are entitled to receive, upon request and free of charge, reasonable access

to and copies of all documents, records, and other information relevant to your claim for benefits, A statement describing any voluntary appeal procedures offered by the Plan and your right to

obtain these procedures, and Where required, a statement that there may be other voluntary alternative dispute resolution

options and a statement of your right to bring a timely civil lawsuit under section 502(a) of ERISA. Type of Plan The SSP is a defined contribution plan, which means that accounts are specifically attributable to each participant. The SSP also has 401(k), profit sharing, savings, stock bonus, and money purchase components, as well as an Employee Stock Ownership feature.

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IRS regulations permit the Company to maintain a special account in the SSP to which it may, from time to time, make contributions. This is known as the 401(h) account. The assets in the 401(h) account may be used to pay medical expenses under Company-sponsored medical benefit plans for retirees. The right to receive a benefit under the Company’s retiree medical programs is governed by the terms of those plan documents and no participant in the SSP has a right or interest in the 401(h) account. The Company is not obligated under ERISA or the Code to fund the 401(h) account, and the Company may terminate the account at any time. Non-Alienation of Benefits and Qualified Domestic Relations Orders The Plan specifically prohibits alienation or assignment of, or borrowing against, any benefits. However, under certain circumstances, a court may award all or part of your benefit under the pension and/or Savings Plan to a present or former Spouse, child or other dependent through a “Qualified Domestic Relations Order,” or QDRO. A QDRO is a court order, judgment or decree that:

Is made under a state domestic relations law (including community property laws), Relates to child support, alimony payments or marital property rights, and Creates or recognizes an alternate payee’s rights to receive all or part of your benefit under the

Plan. If you are affected by a QDRO, you should have your attorney contact the Plan Administrator to make sure the appropriate paperwork is filed. If the QDRO so provides, your Plan benefit as of a specific date may be divided. In this instance, the alternate payee may be set up with a separate benefit in the Plan. QDROs that do not specify immediate allocation of benefits at the date of divorce usually include a formula for allocating benefits when you either leave the Company or reach retirement age. If this is the case, your records will be flagged to indicate that a portion of the total benefit will be paid at a later date to your alternate payee. You and your beneficiaries may obtain, at no charge, a copy of the procedures governing QDRO determinations by contacting the Lockheed Martin QDRO Department at 877-708-7748. The Company Reserves the Right to Change or Terminate the Plan The Company reserves the right to amend, suspend or terminate the Plan in whole or in part, including changing or ceasing contributions, at any time in its sole discretion. Any amendment, suspension or termination will be made by resolution of the Board of Directors or by a written instrument signed by a delegate of the Board of Directors or the Company. You will receive a summary of any changes that are made that materially affect your benefits. In the unlikely event that a Plan termination takes place, or if the Company completely discontinues making contributions to the Plan, the Company will inform you of your account options (e.g., that your account may remain in the Plan until some future distribution, or that your account will be immediately distributed in accordance with the distribution options described in this booklet). Collective Bargaining Agreements The Plan may be the subject of one or more collective bargaining agreements for certain hourly employees. If you are covered by such an agreement, you can see the agreement in your Human Resources office.

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Plan Participation Is Not a Contract of Employment Participation in the Plan does not constitute a contract for, nor guarantee of, continued or future employment with the Company. The Plan’s provisions also do not prohibit changes in the terms of your employment. Statement of ERISA Rights As a participant in the Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan participants shall be entitled to the following: Receive Information about Your Plan and Benefits You may examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites and union halls, all documents governing the Plan, including collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. You may obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements and copies of the latest annual report (Form 5500 Series) and updated Summary Plan Description. The Administrator may make a reasonable charge for the copies. You may receive a summary of the Plan’s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report. Prudent Actions by Plan Fiduciaries In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer, your union or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a savings benefit or exercising your rights under ERISA. Enforce Your Rights If your claim for a savings benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you make a written request for a copy of plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator. If you have a claim for benefits, which is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Plan’s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in federal court. If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

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Assistance with Your Questions If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. The Pension Benefit Guaranty Corporation Federal law requires benefits from defined benefit retirement plans to be insured by the Pension Benefit Guaranty Corporation (PBGC). This is a government agency that insures pension plan benefits if the Plan terminates with insufficient assets to pay the Plan benefits already earned by participants. However, since the Plan is a defined contribution plan rather than a defined benefit plan, the PBGC does not insure the Plan benefits. Top-Heavy Provisions A qualified retirement plan that primarily benefits certain owners or officers of the employer is called a top-heavy plan. A plan is considered top-heavy when more than 60% of the plan’s assets benefit those employees. The Plan is not top-heavy at this time. If it were to become top-heavy in any Plan Year, all other employees who are not members of a collective bargaining agreement would be entitled to certain minimum benefits, and other special plan provisions could apply. If the Plan becomes top-heavy, the Plan Administrator will notify you of your rights. Tax Treatment of the Plan The Company intends to operate the Plan so that it will qualify under Section 401(a) of the Internal Revenue Code. Accordingly, Company contributions to the Plan will be deductible by the Company for income tax purposes and the earnings of the Trust that holds the Plan assets will not be taxable to the Trust, the Company or participants until distributed. Generally, state income tax treatment will follow the federal treatment. Please consult your own tax advisor on the application of the tax laws to your individual circumstances.

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Definitions 401(k) Feature – that portion of the plan that allows you to set aside a portion of your weekly Base Pay on a before-tax and/or after-tax basis through payroll deductions. You may make Before-Tax, Roth 401(k) or After-Tax Contributions—or any combination of the three. After-Tax Contribution – employee contributions made to the Plan after withholding of federal, and in some cases, state and local taxes. Base Pay – includes regular salary, pay for holidays and vacation pay, pay for short-term disability or sick leave, lump-sum merit payments instead of pay increases and the deductions for before-tax contributions under a cafeteria or flexible benefits plan. It does not include overtime, bonuses, incentive compensation, commissions, rate guarantees, severance, relocation pay, lump-sum payments in lieu of vacation pay, variable rate compensation, shift differentials or other special pay. Basic Contributions – basic contributions are matched by the Company. Before-Tax Contributions – employee contributions made to the Plan before withholding federal, and in some cases, state and local taxes. Beneficiary – the person or persons designated by a Plan participant to receive payments from the Plan after his or her death. Business Day – any day the New York Stock Exchange is open to trading. Code – the Internal Revenue Code. Company – Lockheed Martin Corporation (LMC) and its subsidiaries. Company Common Stock – Lockheed Martin Corporation Common Stock. Company Matching Contributions – the money that the Company may contribute as a result of your Basic Contributions (if applicable). Contingent Beneficiary – the person (or persons) who will receive your Plan benefits if none of your primary beneficiaries survive you. You must specify the percentage of your Plan benefits that each contingent beneficiary should receive. If any contingent beneficiary dies before you, his or her percentage will be divided equally among the surviving contingent beneficiaries. If no contingent beneficiaries survive you, your Plan benefit will be paid to your estate. Default Investment Option – the Target Date Fund corresponding to the year beginning on the date closest to your 65th birthday. Prior to 2007, the Default Investment Option was the Stable Value Fund. Differential Pay - the difference between the Base Pay you would have normally received had you not been on military leave and the military pay you receive while on military leave. Direct Rollover – a transfer of a portion of your account made payable to another qualified plan or IRA. Employee – the term employee includes only those individuals that the Company classifies on its payroll records as employees. Thus, you are not eligible to participate in the Plan if you are a consultant, independent contractor, leased employee, are paid by a third party employer, or otherwise are not classified as an employee by the Company. You are also not eligible to participate in the Plan if you are covered by a collective bargaining agreement that does not provide for participation in the Plan.

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ERISA (Employee Retirement Income Security Act of 1974) – the federal law that protects employees’ rights relating to most benefit plans. ESOP (Employee Stock Ownership Plan) – the portion of the Plan that invests primarily in shares of Lockheed Martin Corporation common stock and seeks growth over the long term through dividends and appreciation in the stock’s value. Hardship Withdrawal – a special type of withdrawal that permits employees access to part of their account balance because of an “immediate and heavy” financial need. Highly Compensated Employee (HCE) – an employee who earns over a certain amount each year – set each year by the IRS (for 2016, $120,000) and who is one of the top 20% highest paid employees of the Company for that year. Investment Option Guide – a brochure that contains information about the investment funds available to you. These funds may change from time to time; any such change will be communicated to you in a Summary of Material Modifications. Layoff – termination of employment due to lack of work. LM Company Contributions – the money the Company may automatically contribute to your account, after January 1, 2016 as a percentage of your Base Pay, regardless of whether you elect to contribute to the 401(k) Feature of the Plan. Lump-Sum Distribution – payment within one taxable year of your entire account balance. Money Purchase Component – for former Lockheed participants, the Company Matching Contributions credited after January 2, 1992, and their earnings not invested in the ESOP Fund; for all other participants and employees who become participants after January 1, 1997, the Company Matching Contributions credited after plan participation commences in this Plan and their earnings not invested in the ESOP Fund. Morningstar – provider of investment fund analysis data on the Savings Plan Web Tool. Plan – the Lockheed Martin Corporation Salaried Savings Plan. Plan Administrator – Lockheed Martin Corporation. Plan Year – January 1 to December 31. Primary Beneficiary – the person (or persons) who will receive your Plan benefits when you die. You must specify the percentage of your Plan benefits that each primary beneficiary should receive. If any primary beneficiary dies before you, his or her percentage will be divided equally among the surviving primary beneficiaries. If no primary beneficiaries survive you, your Plan benefits are paid to your contingent beneficiary (or beneficiaries). Qualified Domestic Relations Order (QDRO) – a court order requiring the Plan Administrator to make benefit payments to a Spouse, former Spouse, child or other dependent. Recordkeeper – Voya Financial (“Voya”). Rollover – a distribution which is rolled over into or from an IRA or other qualified plan. Rollover Contributions – amounts from an Individual Retirement Account or the qualified plan of a previous employer that are eligible and accepted for deposit into your account in this Plan.

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Spouse – the person to whom the participant is legally married under applicable law, regardless of the sex of the person. Supplemental (Unmatched) Contributions – any contributions you make that are not matched by the Company. Trustee – State Street Bank and Trust Company. Voting Trustee – State Street Bank and Trust Company.

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Appendix A

401(k) Feature with Company Matching Contributions

Participating Business Units as of January 1, 2016 A salaried employee of any of the following business areas, excluding: (i) individuals covered by a collective bargaining agreement between the Company and a collective bargaining agent except to the extent that such agreement provides for participation in the Plan; (ii) individuals eligible to participate in another plan which includes a cash or deferred arrangement which is maintained by the Company; and (iii) any separate subsidiary which is not specifically listed herein:

Applied NanoStructured Solutions, LLC Corporate Group, excluding EBS employees in Puerto Rico Lockheed Martin Aeronautics Company, excluding Lockheed Martin Middle East Services-Special, Logistics Services, Greenville, and including Lockheed Martin Deposition Sciences, Inc. Lockheed Martin Information Systems & Global Solutions Business Area excluding, LM INS PR and Lockheed Martin Operations Support employees in Puerto Rico, Lockheed Martin Technical Services Group in Puerto Rico, CES, and QTC Management, Inc., Amor Group, Beontra, and Lockheed Martin Industrial Defender, and including Lockheed Martin Systems Made Simple, Inc. Effective January 1, 2001, employees of LM Field Technical Operations who are not exempt from the FLSA (“LM Field Technical Operations Non-Exempt”) are not eligible to participate in the Plan (other than regular Salaried Employees of LM Field Technical Operations, Dryden ER). Lockheed Martin Missiles and Fire Control, including Lockheed Martin Advanced Energy Storage, LLC (effective e December 22, 2014). Lockheed Martin Mission Systems and Training, excluding Lockheed Martin Training Solutions, Inc., ATARS II- Aircrew Training and Rehearsal Support II and US Coast Guard Training and Technical Support Services, and including LM Procerus Technologies LC (effective August 31, 2012), Chandler/May, Inc. (effective July 1, 2013), Lockheed Martin CDL Systems USA (effective July 1, 2013). Sikorsky Aircraft Corporation is subject to the Sikorsky Special Features Insert. Lockheed Martin Space Systems, excluding Sandia, Astrotech Space Operations, Zeta Associates, Inc.

Employees represented in the indicated collective bargaining units are eligible to participate in the Plan under the terms of their Special Features Insert : Security Police Fire Professionals of America

• Local 690 (employees of Sikorsky Aircraft Corporation) International Association of Firefighters, Sikorsky Aircraft Firefighters

• Local I-68 (employees of Sikorsky Aircraft Corporation) Eligible business units and collective bargaining units permitted to participate in these benefits may change from time to time.

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Appendix B

LM Company Contributions

Participating Business Units as of January 1, 2016 A salaried employee of any of the following business areas, excluding: (i) individuals covered by a collective bargaining agreement between the Company and a collective bargaining agent except to the extent that such agreement provides for participation in the Plan; (ii) individuals eligible to participate in Lockheed Martin Operations Support benefits or in any other plan that contains a cash or deferred arrangement that is maintained by the Company; and (iii) any separate subsidiary which is not specifically listed herein:

Applied NanoStructured Solutions, LLC Corporate Group, excluding EBS employees in Puerto Rico Lockheed Martin Aeronautics Company, excluding Lockheed Martin Middle East Services-Special, Aircraft & Logistics Services, Greenville, Kelly Aviation Center, Aeroparts, Inc. and any employees eligible for Lockheed Martin Operations Support benefits and including Deposition Sciences, Inc. Lockheed Martin Information Systems & Global Solutions Business Area excluding, LM INS PR and Lockheed Martin Operations Support employees in Puerto Rico, Lockheed Martin Technical Services Group in Puerto Rico, CES, and QTC Management, Inc., Amor Group, Beontra, Lockheed Martin Industrial Defender, Lockheed Martin Systems Made Simple, Inc., and any employees eligible for Lockheed Martin Operations Support benefits. Employees of LM Field Technical Operations who are not exempt from the FLSA (“LM Field Technical Operations Non-Exempt”) are not eligible to participate in the Plan (other than regular Salaried Employees of LM Field Technical Operations, Dryden ER). Lockheed Martin Missiles and Fire Control, excluding the Technical Services Group, SOF CLSS, and any employees eligible for the Lockheed Martin Operations Support benefits, but including Lockheed Martin Advanced Energy Storage, LLC. Lockheed Martin Mission Systems and Training, excluding Lockheed Martin Training Solutions, Inc., ATARS II- Aircrew Training and Rehearsal Support II and US Coast Guard Training and Technical Support Services, and any employees eligible for Lockheed Martin Operations Support benefits. Sikorsky Aircraft Corporation is subject to the Sikorsky Special Features Insert. Lockheed Martin Space Systems, excluding Sandia, Astrotech Space Operations, Zeta Associates, Inc. and any employees eligible for Lockheed Martin Operations Support benefits.

Employees represented in the indicated collective bargaining units are eligible to participate in the Plan under the terms of their Special Features Insert : Security Police Fire Professionals of America

• Local 690 (employees of Sikorsky Aircraft Corporation) International Association of Firefighters, Sikorsky Aircraft Firefighters

• Local I-68 (employees of Sikorsky Aircraft Corporation) Eligible business units and collective bargaining units permitted to participate in these benefits may change from time to time.

Notes:

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