Form of Stock Option Award Agreement

Exhibit 10.3


FORM OF STOCK OPTION AWARD AGREEMENT

LOCKHEED MARTIN CORPORATION 2003 INCENTIVE PERFORMANCE AWARD PLAN


Grant Date: [insert date] 1

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES

THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933


Dear Optionee:

The Stock Option Subcommittee (the " Subcommittee" ) of Lockheed Martin Corporation' s Board of Directors has awarded to you options to purchase shares of Lockheed Martin Common Stock (" Stock" ) under the Lockheed Martin Corporation 2003 Incentive Performance Award Plan (the " Plan" ).


This letter is your Award Agreement and sets forth some of the terms and conditions of your award. Additional terms and conditions are contained in the Plan and in the Prospectus relating to the Plan of which the Plan document and this Award Agreement are a part. You should retain the Prospectus in your records.

The term " Options" as used in this Award Agreement refers only to the nonqualified stock options awarded to you under this Award Agreement. References to the " Corporation" include Lockheed Martin Corporation and its subsidiaries.


Your award is not enforceable until the Award Agreement or a receipt has been signed by you and returned to the Office of the Vice President and Corporate Secretary.


EXERCISE PRICE


The exercise price of the Options granted hereunder is $[price] per Option. Under certain circumstances set forth in the Plan and this Award Agreement, this exercise price is subject to adjustment.

The Subcommittee presently allows the exercise price of an Option to be paid in cash, by the tender of Stock or through a combination of Stock and cash. No fractional shares of Stock may be tendered in payment, nor will fractional shares be issued. The Subcommittee retains the discretion to, at any time, limit the method of payment to cash. If you elect to pay with Stock, you must have owned the shares tendered for at least six months. If Stock is tendered, it will be valued at its Fair Market Value on the date of tender. 1 Items in brackets are features that vary among individual award agreements.


Grant Date: [Date] Page 2


VESTING/EXPIRATION/FORFEITURE


General Rule - An Option may not be exercised until it has vested, nor may an Option be exercised after its expiration or forfeiture. Subject to certain special rules discussed below, if you remain in the employ of the Corporation until the applicable date of vesting, the vesting schedule for your options is as follows:

First Vesting Date: [one year anniversary of Grant Date] One-Third

Second Vesting Date: [second anniversary of Grant Date] One-Third Third Vesting Date: [third anniversary of Grant Date] One-Third


If the number of Options granted cannot be evenly divided by three into whole shares, the fractional shares will vest on the Third Vesting Date. If you leave the employ of the Corporation before the date on which an Option vests, that Option is forfeited.

Vested Options, except as otherwise provided in this letter, or in the Plan, or as may be restricted by law, may be exercised for a period of ten years from the date of the grant. Options not exercised by their expiration date will be forfeited.


You should make every effort to keep the Corporate Secretary' s office informed of your current address so that we may communicate with you about your options and their current status. The Corporation cannot exercise the options for you, and so you must pay close attention to their term and any impending expiration.


SPECIAL RULES AS TO VESTING


Retirement - If you retire before the First Vesting Date, you will forfeit all of the Options in accordance with the general rule set forth above. If you retire on or after the First Vesting Date, you will vest in the remaining Options on the Second Vesting Date and the Third Vesting Date as though you had remained in the employ of the Corporation through those dates. For the purposes of this provision, the term " retirement" means retirement from service under the terms of the Corporation' s pension plan in which you are a participant.


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