THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Lockheed Martin Corporation (LMT)

3/22/2006 Proxy Information

The Committee and Board determined that Messrs. LoyÕs and RalstonÕs employment as Senior Counselor and Vice Chairman, respectively, of The Cohen Group, a consulting business that performs services to the Corporation, does not affect the two directorsÕ independence. In 2005, the Corporation paid The Cohen Group approximately $550,000, an amount constituting less than the greater of $1 million or 2 percent of The Cohen GroupÕs revenues in 2005.

The Committee and Board determined that Mr. UkropinaÕs status as Of Counsel to OÕMelveny and Myers, a law firm used by the Corporation, does not affect his independence. Mr. Ukropina, who retired from the firm in 2000, is not a partner, member or officer of the firm, nor does he provide legal services to the Corporation. The Committee and Board are further satisfied that, because Mr. Ukropina is retired and provides no active services to OÕMelveny and Myers, he is independent for purposes of serving on the Audit Committee.

The Corporation currently employs approximately 135,000 employees and has an active recruitment program for soliciting job applications from qualified candidates. The Corporation seeks to hire the most qualified candidates and consequently does not preclude the hiring of family members. The employment of various family members of current directors and executive officers is described below.

These relationships (and 2005 base salary including MICP and stock options granted in 2005, where applicable) include Mr. BennettÕs son-in-law, Jeffrey D. MacLauchlan, Vice President, Financial Strategies ($285,000 in base salary, $232,500 in MICP and a stock option award of 11,500 shares); Mr. RalstonÕs brother-in-law, Mark E. Dougherty, Director, Business Development Analysis ($135,713); Mr. SavageÕs son, Mark Savage, Financial Analyst-Staff ($91,080); Michael F. CamardoÕs two sons-in-law, Robert M. Rynkar, Financial Analyst ($59,740) and John P. Foley, Cost Estimation Director ($122,800 in base salary and $20,700 in MICP); and G. Thomas MarshÕs brother-in-law, Larry Roubidoux, Engineering Planning Senior Manager ($137,473). The compensation of each family member was established in accordance with the CorporationÕs employment and compensation practices applicable to employees with equivalent qualifications, experience and responsibilities. None of these individuals served as executive officers during 2005. Mr. Kubasik is entitled to a fixed monthly payment at age 65 from an ERISA-qualified pension plan sponsored by Ernst & Young LLP, our independent auditors and Mr. KubasikÕs employer from 1983 to 1999. The net present value of this benefit is less than $100,000.

The Board considered comments made and issues raised by others concerning the qualifications of directors. On May 11, 2004, the Secretary of the U.S. Department of Labor and certain former outside directors of Enron Corporation, including Mr. Savage, entered into a consent decree which provides, among other things, that for the five year period following entry of the decree, none of the former Enron directors will, without the consent of the Secretary of Labor, serve an ERISA-covered plan in a fiduciary capacity in the manner set forth in the decree. It is the view of the Committee that service by Mr. Savage on the Board of Directors of the Corporation or any of its committees is permitted by the decree.

In addition, from time to time, the Corporation has purchased services in the ordinary course of business from financial institutions that beneficially own five percent or more the CorporationÕs common stock. In 2005 the Corporation paid fees of $323,000 to BarclayÕs Global Investors, N.A. for serving as a participating bank in certain of the CorporationÕs credit facilities and $867,000 to State Street Bank and Trust Company and its affiliates for credit-facility and benefit-plan-administration fees.

The Board determined that Mr. UkropinaÕs status as Of Counsel to OÕMelveny and Myers, a law firm used by the Corporation, does not affect his independence. Mr. Ukropina, who retired from the firm in 2000, is not a partner, member or officer of the firm, nor does he provide legal services to the Corporation. The Board is further satisfied that, because Mr. Ukropina is retired and provides no active services to OÕMelveny and Myers, he is independent for purposes of serving on the Audit and Ethics Committee.

3/18/2005 Proxy Information

Mr. Savage is a member of the Management Development and Compensation Committee. Mark Savage, Mr. SavageÕs son, serves as Financial Analyst Š Staff for the Corporation, at a 2005 cash compensation level of $95,000.

The Board determined that Mr. Stevens, an employee of the Corporation, is not independent. Similarly, Dr. Coffman is not considered independent because he retired as an employee in 2004.

The Board considered the CorporationÕs provision to Mr. Augustine of office space at a location unrelated to the corporate office and an executive assistant, which were provided to him as a former Chairman and CEO of the Corporation. The Board concluded that these items do not constitute direct compensation to Mr. Augustine that would affect his independence.

The Board determined that Mr. RalstonÕs employment as Vice Chairman of The Cohen Group, a consulting business that performs services to the Corporation, does not affect Mr. RalstonÕs independence. In 2004, the Corporation paid The Cohen Group approximately $500,000, an amount constituting less than the greater of $1 million or two percent of The Cohen GroupÕs revenues in 2004.

The Board determined that Mr. UkropinaÕs status as Of Counsel to OÕMelveny and Myers, a law firm used by the Corporation, does not affect his independence. Mr. Ukropina, who retired from the firm in 2000, is not a partner, member or officer of the firm, nor does he provide legal services to the Corporation. The Board is further satisfied that, because Mr. Ukropina is retired and provides no active services to OÕMelveny and Myers, he is independent for purposes of serving on the Audit and Ethics Committee.

The Corporation currently employs over 130,000 employees and has an active recruitment program for soliciting job applications from qualified candidates. The Corporation seeks to hire the most qualified candidates and consequently does not preclude the hiring of family members. The employment of various family members of current directors and executive officers is described below. These relationships (and 2004 cash compensation including stock options granted in 2004, where applicable) include Dr. CoffmanÕs son-in-law, Greg Sallee, Administrative Representative Senior ($75,000); Mr. BennettÕs son-in-law, Jeffrey D. MacLauchlan, Vice President, Financial Strategies ($273,000 in base salary and MICP and stock option awards of $197,900 and 12,000 shares, respectively); Mr. RalstonÕs brother-in-law, Mark E. Dougherty, Director, Business Development Analysis ($132,800); Michael F. CamardoÕs two sons-in-law, Robert Rynkar, Financial Analyst ($51,000) and John Foley, Cost Estimation Director ($128,000 and stock option award of 500 shares); and G. Thomas MarshÕs (an executive officer) brother-in-law, Larry Roubidoux, Engineering Planning Senior Manager ($131,000). In addition, Mr. SavageÕs son, Mark Savage, is a Financial Analyst-Staff ($95,000 in 2005). The compensation of each family member was established in accordance with the CorporationÕs employment and compensation practices applicable to employees with equivalent qualifications, experience and responsibilities. None of these individuals served as executive officers during 2004.

The Board also considered comments made and issues raised by others concerning the qualifications of directors. On May 11, 2004, the Secretary of the U.S. Department of Labor and certain former outside directors of Enron Corporation, including Mr. Savage, entered into a consent decree which provides, among other things, that for the five year period following entry of the decree, none of the former Enron directors will, without the consent of the Secretary of Labor, serve an ERISA-covered plan in a fiduciary capacity in the manner set forth in the decree. It is the view of the Committee that service by Mr. Savage on the board of directors of the Corporation or any of its committees is permitted by the decree.

The Board also considered comments made and issues raised by others concerning the qualifications of directors. On May 11, 2004, the Secretary of the U.S. Department of Labor and certain former outside directors of Enron Corporation, including Mr. Savage, entered into a consent decree which provides, among other things, that for the five year period following entry of the decree, none of the former Enron directors will, without the consent of the Secretary of Labor, serve an ERISA-covered plan in a fiduciary capacity in the manner set forth in the decree. It is the view of the Committee that service by Mr. Savage on the board of directors of the Corporation or any of its committees is permitted by the decree.

3/15/2004 Proxy Information

The Board determined that Mr. RalstonÕs employment as Vice Chairman of The Cohen Group, a consulting business that performs services to the Corporation, does not affect Mr. RalstonÕs independence. In 2003, the Corporation paid The Cohen Group approximately $500,000 and it is anticipated that a comparable amount will be paid to The Cohen Group in 2004.

The Board determined that Mr. UkropinaÕs status as Of Counsel to OÕMelveny and Myers, a law firm used by the Corporation, does not affect his independence. Mr. Ukropina, who retired from the firm in 2000, is not a partner, member or officer of the firm, nor does he provide legal services to the Corporation. The Board is further satisfied that, because Mr. Ukropina is retired and provides no active services to OÕMelveny and Myers, he is independent for purposes of serving on the Audit and Ethics Committee

3/14/2003 Proxy Information

Joseph Ralston has been Vice Chairman of the Cohen Group since March 2003. he Cohen Group is a consulting business that performs services to the Corporation. In 2002, the Corporation paid the Cohen Group approximately $430,000 and it is anticipated that approximately $500,000 will be paid to the Cohen Group in 2003.