Document:

<PAGE>

[BOEING LOGO]             PURCHASE CONTRACT             ACCEPTANCE REQUIRED: [X]

<TABLE>
<S>                                                     <C>
THE BOEING COMPANY
P.O. BOX 240002
HUNTSVILLE, AL 35824-8402                                                         SPECIAL CONTRACT INSTRUCTIONS ARE ATTACHED HERETO:

------------------------------------------------        ----------------------------------------------------------------------------
ORBITAL SCIENCES CORP                   675784          PURCHASE CONTRACT NO.:          PCC               STATUS           PAGE

                                                               101018                    2                  AP            1 OF 2
3380 S PRICE RD                                         ----------------------------------------------------------------------------

CHANDLER             , AZ   85248-3534                  ---------------------------
                                                        RELEASE        17-APR-02
                                                        DATE:
ATTENTION: Camille Cisek                                ---------------------------    ---------------------------------------------
                                                        ORIGINAL       27-MAR-02        [ ]  Subject to Tax
                                                        PC DATE:
                                                        ---------------------------     [X]  For Resale, Not Subject to Tax
                                                        CONFIRM        12/19/01              (Cert No. RA 103)
                                                        DATE:
------------------------------------------------        ---------------------------    ---------------------------------------------
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SHIP VIA: Not applicable                                FOB: Not Applicable            TERMS:  0%  0    NET 30
------------------------------------------------------------------------------------------------------------------------------------
SHIP TO: The Boeing Company      799A James Record Road                         Huntsville                , AL        35824
------------------------------------------------------------------------------------------------------------------------------------
ADDRESS ALL INQUIRIES TO BUYER:

BUYER NAME: Connie Kama                      MAIL STOP:  GB-81           PHONE:  714-762-0352            FAX:

                                                      EMAIL: connie.kama@boeing.com
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
PURCHASE ORDER COMMENTS:

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THE FOLLOWING LISTED ATTACHMENTS DEFINE THE TERMS AND CONDITIONS APPLICABLE TO THIS PURCHASE CONTRACT. ATTACHMENTS PRECEDED BY THE
WORD "WEB" ARE AVAILABLE ON THE INTERNET AT HTTP://WWW.BOEING.COM/COMPANYOFFICES/DOINGBIZ/TSCS. ADDITIONAL APPLICABLE TERMS AND
CONDITIONS IDENTIFIED IN THE LIST ARE ATTACHED HERETO. TERMS AND CONDITIONS APPLICABLE TO SPECIFIC LINE ITEMS ARE IDENTIFIED WITH
THE LINE ITEM. IF YOU ARE UNABLE TO ACCESS THE INTERNET, PLEASE CONTACT THE BUYER IDENTIFIED ABOVE.

ATTACHMENTS
CHANGE                  PC CHANGES                                  Rev  03
CLAUSES                 A229                                        Rev  01/01
DPAS                    DPAS ORDER                                  Rev  00
HEADER                  DD FORM 254                                 Rev  00
FREEFORM                101018 RAPID SOW                            Rev  000
SHIP VIA:               HSV. SHIPPING INSTRUCTIONS                  Rev  03/01
ZZZZ                    END                                         Rev  00

                                                                                             TOTAL PC VALUE    $333,954,177.00 NTE
                                                                                       CURRENT FUNDED VALUE     $61,371,294.00

------------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT PRIORITY RATINGS IDENTIFIED AT THE LINE ITEM LEVEL
INDICATE THAT REQUIREMENTS WITHIN THIS ORDER ARE CERTIFIED FOR
NATIONAL DEFENSE USE UNDER DMS REGULATION 1, AND YOU ARE HEREBY
REQUESTED TO SIGN AND RETURN ACKNOWLEDGEMENT WITHIN TEN WORKING   ACCEPTANCE OF THE OFFER REPRESENTED BY THIS ORDER IS EXPRESSLY
DAYS FOR DO RATED REQUIREMENTS AND WITHIN FIVE WORKING DAYS FOR   LIMITED TO THE PROVISIONS HERETO. SIGNING AND RETURNING THE
DX RATED REQUIREMENTS.                                            ACKNOWLEDGMENT COPY OF THE ORDER (IF ATTACHED HERETO), OR, IN ANY
                                                                  EVENT, DELIVERY IN THE WHOLE OR IN PART OF THE ARTICLES TO BE
----------------------------------------------------------------  FURNISHED HEREUNDER SHALL CONSTITUTE ACCEPTANCE OF THIS ORDER.
                                                                  THIS IS THE ENTIRE CONTRACT AND NO CHANGES OF ANY KIND WHATSOEVER
                                                                  ARE BINDING ON THE BUYER UNLESS THEY ARE ACCEPTED BY THE BUYER IN
 --ACCEPTANCE OF THIS PURCHASE ORDER IS HEREBY ACKNOWLEDGED--     WRITING.

SELLER___________________________________   DATE___________

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

/\ REFERS TO INFORMATION OMITTED BY MEANS OF REDACTING A PORTION OF THE TEXT.
THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION
PURSUANT TO OUR APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24b-2
UNDER THE SECURITIES EXCHANGE ACT OF 1934.

<PAGE>

<TABLE>
<S>                                                           <C>                                                 <C>
-----------------  -----------------------------------------  -------------------------------  -----------------  ------------------

[BOEING LOGO]           PURCHASE CONTRACT CONTINUATION           PURCHASE CONTRACT: 101018         REVISION 2         PAGE 2 OF 2

-----------------  -----------------------------------------  -------------------------------  -----------------  ------------------

------  ----------------------------------------------------------------------------------------------------------------------------
 ITEM   QUANTITY                      UM   PART NUMBER                                                     PROJECT CCN
               VENDOR P/N                                           DESCRIPTION
               CONTRACT NUMBER                             PRIORITY RATING            FUNDED UNIT PRICE      FUNDED EXTENDED PRICE
               TRUE MANUFACTURER
------  ----------------------------------------------------------------------------------------------------------------------------
 0001                1                LT                                                                         VHA**10**093

             RAPID BV LAUNCH                                ORBITAL SCIENCES
             HQ0006-01-C-0001            DX-68                      $11,231,432.00                                 $11,231,432.00
    SOW: Rapid BV Lau             SOW REV:  12/17/20

    ITEM REFERENCE: Estimated Price to be negotiated

    ITEM UNIT VALUE:      $11,231,432.00   VALUE CODE: B

    PERIOD OF PERFORMANCE:  12/18/01 through 3/31/07

      ---------------------------------------------
         QUANTITY ORDERED       DELIVERY DATE
      ---------------------------------------------
                        1       30-APR-02

 0002                1                LT                                                                         VHA**10**093

                ABV DESIGN                                  ORBITAL SCIENCES
                HQ0006-01-C-0001         DX-C9                      $43,205,486.00                                 $43,205,486.00
    SOW: ABV Design a                SOW REV:  12/17/01

    ITEM REFERENCE: Definitized Price Included in Line Item 2

    ITEM UNIT VALUE:      $315,252,803.00  VALUECODE: f

    PERIOD OF PERFORMANCE:  12/18/01 through 3/31/07

      ---------------------------------------------
         QUANTITY ORDERED       DELIVERY DATE
      ---------------------------------------------
                        1       30-APR-02

 0003                1                LT                                                                         VHA**10**093

                                                            TEST BED
                HQ0006-01-C-0001         DX-C9                      $6,934,376.00                                  $6,934,376.00

    ITEM REFERENCE: To be negotiated

    ITEM UNIT VALUE:      $7,469,942.00    VALUE CODE: d

    PERIOD OF PERFORMANCE:  2/8/02 through 3/31/07

      ---------------------------------------------
         QUANTITY ORDERED       DELIVERY DATE
      ---------------------------------------------
                        1       30-APR-02
</TABLE>

<PAGE>

<TABLE>
<S>                                                     <C>                                                    <C>
------------------------------------------------------------------------------------------------------------------------------------
AUTHORITY                             PRIORITY          CCN VHA10093             ACCOUNT                       SUBCONTRACT NUMBER

    APPROVED RFPA 3/20/02               DX-C9                                                                        101018
------------------------------------------------------------------------------------------------------------------------------------
PRIME CONTRACT                      QA COORDINATION                NEG/ADM                          NO. OF PAGES         PAGE NO.

     HQ0006-01-C-0001                                                C. M. KAMA                           8                 1
------------------------------------------------------------------------------------------------------------------------------------
TO:  Orbital Sciences Corporation                                  THE BOEING COMPANY
     3380 S. Price Road                                            3370 MIRALOMA AVENUE
     Chandler, AZ 85248-3534                                       ANAHEIM, CA. 92803

------------------------------------------------------------
SHIP TO:     A - MSFC, Huntsville, AL
             B - KSC, Florida
    C        C - Other
 ------
------------------------------------------------------------------------------------------------------------------------------------
VIA:         1 - MDA-HSV Truck           4 - Parcel Post           F.O.B.                                          SECURITY
             2 - Supplier Choice         5 - Other                                                              CLASSIFICATION:
    5        3 - United Parcel           6 - GBL                                                                 UNCLASSIFIED
 ------                                                            DESTINATION
------------------------------------------------------------------------------------------------------------------------------------
TERMS:  NET 30                                                                                                      NET PRICE
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                                                      SCHEDULE
                                                      --------

The Letter Subcontract 101018, dated 12/18/01, and all change notices were issued in contemplation               $315,252,803.00
of the execution of this subcontract. All of the change notices issued under Letter Subcontract are
superseded in their entirety by this subcontract. Any and all acts of performance of the noted
Letter Subcontract as amended shall be deemed made, done, or performed under the applicable
provisions of this definitive subcontract.

The price of Line Item 2 valued at $315,252,803 is the definitive Net Price of this Subcontract and
does not include undefinitized Line Item 1 (Taurus Lite) and Line Item 3 (Test Bed) of the
Subcontract. Upon negotiation and agreement on price of said items, the price of this order will be
adjusted accordingly.

Exhibits A, B, C, D, E, and F are attached hereto and incorporated herein.

------------------------------------------------------------------------------------------------------------------------------------
PER YOUR:    A - Verbal                  C - Written
             B - Telegraphic
    C
 -------                                                               THIS ORDER SUBJECT TO THE TERMS AND CONDITIONS
           Quotation Dated 14 November 2001                                          SET FORTH HEREIN.
                           ----------------

           Quotation No. TM-16127
                         --------
------------------------------------------------------------------------------------------------------------------------------------

                                IN WITNESS WHEREOF, THE PARTIES HERETO HAVE CAUSED THESE PRESENTS TO
                                            BE EXECUTED ON THE DATES MENTIONED BELOW.

ORBITAL SCIENCES CORPORATION                                                THE BOEING COMPANY
-------------------------------------------------------                     ------------------
                 Subcontractor

By /s/                                                                      By /s/
   ----------------------------------------------------                        ----------------------------------------------------
Typed Name James Utter                                                      Typed Name C. M. Kama
           --------------------------------------------                                --------------------------------------------
                                                                                                (Authorized Agent)
Title  Senior V.P. Finance and Business Operations
      -------------------------------------------------

Date 4/2/02                                                                 Date 3/29/02
     --------------------------------------------------                          --------------------------------------------------

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</TABLE>

<PAGE>

--------------------------------------------------------------------------------
 ITEM                 CONTINUATION SHEET        SUBCONTRACT NO.    PAGE NO.
  NO.
                                                    101018            2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

                              SCHEDULE (CONTINUED)

                                TABLE OF CONTENTS

       EXHIBITS

   I.  STATEMENT OF WORK

  II.  PERIOD OF PERFORMANCE

 III.  COMPLETION DATES

  IV.  TERMS AND CONDITIONS/FORMS

   V.  CONTRACT LINE ITEMS

  VI.  TARGET COST, AWARD FEE, AND AWARD FEE PLAN - LINE ITEM 02

 VII.  FUNDING LIMITATION AND FUNDING LIMITATION REVISIONS

VIII.  GOVERNMENT PROPERTY

  IX.  PRINCIPAL PLACE OF PERFORMANCE

   X.  APPLICABLE LAW

  XI.  INVOICE PAYMENT INSTRUCTIONS

 XII.  PRIORITY

XIII.  SECURITY REQUIREMENTS

 XIV.  RELATIONSHIP WITH SUBCONTRACTOR

  XV.  ALABAMA TAX EXEMPTION

 XVI.  ORDER OF PRECEDENCE

XVII.  SUBCONTRACTOR RESPONSIBILITY

--------------------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
 ITEM                 CONTINUATION SHEET        SUBCONTRACT NO.    PAGE NO.
  NO.
                                                    101018            3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

                                    EXHIBITS

<TABLE>
<CAPTION>
Exhibit       Title
-------       -----
<S>           <C>
   A.         Subcontract Terms and Conditions

   B.         Dual Booster Vehicle Statement of Work D743-16366-1, dated 9-26-01
              with Procurement Data Requirements List (PDRL), D743-16367-1,
              dated 8-17-01.

   C.         Boost Vehicle Prime Item Development Specification (PIDS)
              S743-16353-1, dated 9-12-01 with Boost Vehicle to Payload
              Interface Requirements Specifications (IRS) S743-16355-1, dated
              8-17-01.

   D.         DD Form 254, Contract Security Classification Specification for
              Subcontract Number 101018, Original Dated 12-17-01.

   E.         Award Fee Plan, dated 3-29-02.

   F.         GFP Listing. Dated 8-6-02.
</TABLE>

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<PAGE>

--------------------------------------------------------------------------------
 ITEM                 CONTINUATION SHEET        SUBCONTRACT NO.    PAGE NO.
  NO.
                                                    101018            4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

I.      STATEMENT OF WORK

        The Orbital Sciences Corporation (hereinafter referred to as
        "Subcontractor", "Supplier", "Seller", or OSC) shall provide to The
        Boeing Company, (hereinafter referred to as "Boeing," or "Buyer") on a
        Cost Plus Award Fee Basis, all labor, services, materials, and equipment
        (except for GFE/GFP authorized herein) necessary to perform and complete
        the efforts as set forth in Exhibit "B" National Missile Defense
        Alternate Boost Vehicle Statement of Work D743-16366-1, dated September
        26, 2001, which is attached hereto and made a part hereof.

II.     PERIOD OF PERFORMANCE

        The period of performance of this subcontract is 18 December 2001
        through 31 March 2007.

III.    COMPLETION DATES

        Seller shall accomplish the requirements specified herein so as to meet
        the following completion dates:

        DBV (Baseline):                 /\ Event                         Date
                                        /\                               /\
                                        /\                               /\
                                        /\                               /\
                                        /\                               /\
                                        /\                               /\
                                        /\                               /\
                                        /\                               /\
                                        /\                               /\
IV.     TERMS AND CONDITIONS/FORMS

        Terms and Conditions applicable to this subcontract are attached hereto
        as Exhibit "A" entitled "Terms and Conditions" and made a part hereof.

V.      CONTRACT LINE ITEMS

<TABLE>
<CAPTION>
              Line Item Description                                           NTE Price
              ---------------------                                           ---------
              <S>                                                             <C>
              01:  Taurus Lite                                                $ To Be Negotiated (Undefinitized)
              02:  DBV - Baseline, includes the following elements:           $315,252,803 (Definitized)
                    0101 Development            $264,368,370
                   *0103 Additional Boosters    $ 41,018,180
                   *0104 Special Studies        $  9,866,253
              03:  Test Bed                                                   $To Be Negotiated (Undefinitized)
                                                                              ---------------------------------
                                                        Total NTE Price:      $315,252,803 (Definitized Value)
</TABLE>

        Note: *Line Item 02: Subcontractor is authorized to perform work only
        under 0101 Development in accordance with the Scope of Work.
        Subcontractor will not perform effort under 0103 Additional Boosters and
        0109 Special Studies until authorized in writing by buyer.

        Line items 01 and 03, above are undefinitized and are subject to
        negotiation. Upon negotiation and agreement on price of said items, the
        price of this order will be adjusted accordingly.

        As an inducement to and as additional consideration for the issuance of
        this contract, Subcontractor hereby grants to Buyer the following option
        exercisable at the sole election of Buyer by issuing written notice
        thereof to Subcontractor on or before the option exercise date contained
        herein, to purchase under the same terms and conditions of this
        subcontract, as may be amended from time to tune, additional effort at a
        price to be negotiated by not to exceed the price below.

<TABLE>
<CAPTION>
        ITEM DESCRIPTION                 OPTION EXERCISE DATE                       NTE PRICE (TO BE NEGOTIATED)
        ----------------                 --------------------                       ----------------------------
        <S>                              <C>                                        <C>
        0201                             No later than 03/15/2003                   $116,731,405
        0203                             No later than 12/15/2003                   $396,233,354
        0301                             No later than 10/1/2005                    $18,885,247
</TABLE>

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<PAGE>

--------------------------------------------------------------------------------
 ITEM                 CONTINUATION SHEET        SUBCONTRACT NO.    PAGE NO.
  NO.
                                                    101018            5
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--------------------------------------------------------------------------------

        It is mutually agreed and understood that the additional effort procured
        by buyer under the provisions of this option clause shall be performed
        in strict compliance with all of the requirements of this contract as
        such may be amended from time to time and made applicable hereto.

        It is contemplated that Buyer may make changes in accordance with the
        Changes article hereof at any time in the services ordered or to be
        ordered hereunder. In the event that any changes are made, the prices
        provided for herein shall, with respect to the effort changed, be
        subject to equitable adjustment in accordance with the Changes article.

        Exercise of any option hereunder will be by change notice hereto or by
        separate contract.

        It is further mutually agreed and understood that Buyer is under no
        obligation whatsoever to exercise the above option and that no
        representations have been made by committing to the exercise of any
        option hereunder, and that Buyer may procure any additional requirements
        elsewhere.

        Buyer and Subcontractor agree that Buyer's option exercise dates (s) are
        contingent upon exercise by Buyer's customer of options in its contract
        with the Buyer. Delay in the customer's exercise of any option will, in
        turn, delay the exercise of the related option in this order on a
        day-for-day basis, until such time as the Buyer's contract option is
        exercised.

VI.     TARGET COST, AWARD FEE, AND AWARD FEE PLAN - LINE ITEM 2: DBV (Baseline)

        Subject to the Form GP-4 Provision entitled "Allowable Cost and Payment
        -- FAR 52.216-7", the Subcontractor shall be compensated for performance
        of Line Item 02, DVB (Baseline) as follows:

<TABLE>
        <S>                                 <C>
        Target Cost                         $273,425,496
        Target Cost-of-Money                $813,483
        Award Fee @ 15%                     $41,013,824
                                            -----------
                                            $315,252,803
</TABLE>

        As established in the enclosed Award Fee Plan, dated 3-29-02 (Exhibit
        E), the award amount and the award fee determination methodology are
        unilateral decisions made solely at the discretion of Boeing.

VII.    FUNDING

        A.      Of the total estimated price of this subcontract of $333,954,177
                the following maximum amounts are available for payment and
                allotted to this subcontract.

<TABLE>
                      <S>                                         <C>
                      Line Item 01 Taurus Lite:                    $11,231,432
                      Line Item 02 DBV Program (Baseline):         $23,298,626
                      Line Item 03 Test Bed:                       $ 6,837,904
                                                                   -----------
                      Total Funding Limitation:                    $41,367,962
</TABLE>

        B.      The total estimated price set forth in Paragraph A for the DBV
                Program above will cover the work to be performed through the
                period ending 31 March 2007.

        C.      Notwithstanding any other provision of this subcontract, all
                payments to the Subcontractor shall be subject to the funding
                limitation as set forth in Paragraph A. above, and in accordance
                with Exhibit A, Form GP-4 Clause 11 entitled "Limitation of
                Funds".

--------------------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
 ITEM                 CONTINUATION SHEET        SUBCONTRACT NO.    PAGE NO.
  NO.
                                                    101018            6
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--------------------------------------------------------------------------------

        D.      Upon issuance by Boeing to the Subcontractor of a subcontract
                change notice signed by an authorized agent of Boeing, the
                expenditure limitation specified above as Boeing's maximum
                liability shall be deemed to be adjusted in accordance with said
                Change Notice for the continued performance of the work
                specified in Exhibit B.

        E.      Notwithstanding potential termination liability amounts reported
                by Seller to Buyer, pursuant to the Limitation of Funds
                provisions of this Subcontract, Seller shall fully utilize the
                funding released by Buyer, for performance of the requirements
                under this subcontract. Seller shall not reserve or withhold
                from its expenditures, any funding that represents potential
                termination costs. In the event that this Subcontract is
                terminated for convenience pursuant to the Termination clause of
                this subcontract, Buyer shall remain liable to Seller for
                termination costs in accordance with the provisions of the
                Termination clause hereof.

VIII.   GOVERNMENT PROPERTY

        A list of the current GFP is located in Exhibit "F" titled GFP Listing.
        Additional Government Furnished Property is subject to definitization by
        the government.

IX.     PRINCIPAL PLACE OF PERFORMANCE

        The principal place of performance of this subcontract shall be at the
        Subcontractor's site located in Chandler, Arizona.

X.      APPLICABLE LAW

        This subcontract shall be governed and construed according to the laws
        of the State of California.

XI.     INVOICE PAYMENT REQUIREMENTS

        Payments. Payments are made from "original" invoices only. Fax copies,
        copies of invoices or statements will not be accepted. "duplicate
        original" invoices must not be sent without prior authorization from
        either your purchasing agent or accounts payable. Duplicate original
        invoices, altered invoices or computer prints of invoices not on your
        company letterhead must be signed and dated with full signature of the
        appropriate manager in your company. Initials will not be accepted.
        Third party billing is not allowed.

        Payment Terms. Determination of payment due date, whether under net or
        discount terms, will be based on the latest of (i) the date goods are
        received or services performed; (ii) the date provided in this contract
        for receipt of goods or completion of services; (iii) the date an
        accurate invoice is received in accounts payable. Payments are not
        scheduled upon the date of your invoice. Payment will be deemed to have
        been made when deposited in the mail.

        Invoice mailing information. Invoices are to be mailed to:

                The Boeing Company
                Accounts Payable
                P.O. Box 66956, Mail Code S276-1371
                St. Louis, MO 63166-6956

                Attention: Carolyn Washington

                Phone: (314) 232-8455         Fax: (314) 232-8846

                Invoices sent to any other address or to buyers may
                delay your payment.

        A copy of invoices will be mailed to:

                The Boeing Company
                3370 Miraloma Ave.
                Anaheim, CA 92803-3105
                Attention: Connie Kama M/C GG-16

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<PAGE>

--------------------------------------------------------------------------------
 ITEM                 CONTINUATION SHEET        SUBCONTRACT NO.    PAGE NO.
  NO.
                                                    101018            7
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--------------------------------------------------------------------------------

        Prepaid freight charges. When prepaid freight charges are authorized by
        your procurement agent, include a copy of each freight bill with the
        invoice if total charges exceed $100.00. Freight charges over $100.00
        require approval from Boeing traffic prior to payment and will be
        deducted from your invoice payment. It is not necessary to re-invoice.
        When the approval has been received, an additional check will be issued
        for the approval freight charge.

        Invoice requirements. All invoices must contain the following
        information:

        1.  The name and address of the supplier, which must match the name, and
            address on the purchase contract.

        2.  Invoice number.

        3.  Invoice date.

        4.  Boeing purchase contract number. Only one purchase contract number
            per invoice.

        5.  Boeing purchase contract line item number(s) and description of item
            ordered (Boeing part number).

        6.  Quantity invoiced, which must equal quantity, shipped and cannot
            exceed quantity ordered.

        7.  Unit of measure. If the invoice-billing unit of measure is different
            than the purchase contract order unit of measure, both units of
            measure must be included on the invoice.

        8.  Unit price, which must agree with the purchase contract unit price.
            If the invoice billing unit price is different than the purchase
            contract unit price, both unit prices must be included on the
            invoice.

        9.  Extended unit price. Each Boeing purchase contract line item must be
            subtotaled individually before tax, freight or any additional
            charges are listed. Each invoice must have a grand total, which
            includes all charges.

        10. Payment terms, which must agree with the purchase contract payment
            terms.

        11. Shipping information, which includes shipment number, date of
            shipment and freight carrier.

        12. Name and address where invoice payment is to be mailed. Name must
            agree with the purchase contract name.

        13. Name, title, phone/fax number and mailing address of person to be
            notified in event of a defective invoice.

        The purchase contract is the sole basis for your payment. Incorrect
        invoices will be returned unpaid. Accounts payable cannot authorize or
        negotiate any changes to the purchase contract. Please contact your
        procurement agent directly to resolve invoice discrepancies.

        Payment inquiries. Accounts payable checks are generated twice a week.
        Checks are prepared and mailed each Tuesday and Thursday.

        Inquiries on past due invoices (aged 45 days from invoice date) or
        payment problems may be faxed directly to accounts payable, fax number
        314-232-8846. A copy of the invoice in question should be annotated with
        the specific problem.

        Identification: For accounting purposes all invoices submitted by the
        Subcontractor shall note: Subcontract Number 101018. Prime Contract
        HQ0006-01-C-0001, and Cost Charge Number VHA10093.

--------------------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
 ITEM                 CONTINUATION SHEET        SUBCONTRACT NO.    PAGE NO.
  NO.
                                                    101018            8
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--------------------------------------------------------------------------------

XII.    PRIORITY

        The priority rating for this subcontract is DX-C9. This is a rated order
        certified for national defense use, and you are required to follow all
        of the provisions of the Defense Priorities and Allocation System
        regulation (15 CFR Part 700). Pursuant to the Defense Priorities and
        Allocations System regulation, you are required to acknowledge this
        order in writing within ten working days after receipt of a "DO" rated
        order and within five working days after receipt of a "DX" rated order.

XIII.   SECURITY REQUIREMENTS

        The security requirements applicable to this subcontract are set forth
        in the DD Form 254, Contract Security Classification Specification,
        Exhibit D, attached hereto and made a part hereof.

XIV.    RELATIONSHIP WITH SUBCONTRACTOR

        The Subcontractor shall, at the request of Buyer, arrange and conduct
        meetings at the Subcontractor's or lower-tier supplier's or
        subcontractor's facilities with Buyer and Government personnel in
        attendance. Buyer may request such meetings to review in-process work,
        investigate problem areas or activities critical to program schedules,
        or to witness or review test activities.

XV.     ALABAMA TAX EXEMPTION

        The items and/or services purchased hereunder are for resale to the U.S.
        Government and are exempt from taxation per Certificate Number 6800
        04598.

XVI.    ORDER OF PRECEDENCE

        In the event of any inconsistency between the provisions of this
        subcontract, the inconsistency shall be resolved by giving precedence in
        the following order:

            (a) Schedule

            (b) General Provisions

            (c) Statements of Work

            (d) Other documents incorporated by reference

 XVII.  SUBCONTRACTOR RESPONSIBILITY

        Notwithstanding the right of Buyer to review the Subcontractor's efforts
        and progress, drawings, specifications, plans, data items, etc., as
        required by this subcontract, and to provide certain approvals as
        required by this subcontract, it is expressly understood that any such
        reviews and/or approvals shall in no manner relieve the Subcontractor
        from meeting any and all requirements of this subcontract.

--------------------------------------------------------------------------------<PAGE>
<TABLE>
<S>                                                                 <C>
                                    J. W. Evatt                     The Boeing Company
                                    Executive VP, Space & Comms.    1421 Jefferson Davis Highway MC LS-C2
                                    President-Government Sys. &     Suite 200
                                    General Manager-NMD Program     Arlington, VA  22202
</TABLE>

<TABLE>
<S>                       <C>
                          December 4, 2001                              Ltr. No. 1-1103-MDS-RHK-066

                          To:          Orbital Sciences Corporation
                                       3380 S. Price Road
                                       Chandler, AZ 85248-3534

[BOEING LOGO]             Attention:   David W. Thompson
                                       Chairman of the Board and Chief Executive Officer

                          Subject:     Terms and Conditions of Potential NMD ABV Subcontract

                          Reference:   Boeing RFP NMD-DJC-2001-00049 (17 August 2001),
                                       Clarification Request 0-164, Financial Condition of OSC

                          Dear Mr. Thompson:

                          The Boeing Company (Boeing) and Orbital Sciences Corporation
                          (Orbital), anticipating that Boeing will enter into negotiations
                          with Orbital for a subcontract on the Ground-based Midcourse
                          Defense Segment (GMDS) (formerly, National Missile Defense or
                          "NMD") Alternate Boost Vehicle (ABV) program, have agreed to
                          include certain terms and conditions identified in this letter
                          in any such subcontract. These terms and conditions are in
                          addition to those identified in the solicitation. This letter
                          is written to confirm and document your agreement with this
                          understanding. If you do agree, please so indicate by
                          executing the acknowledgement at the end of the letter and
                          returning one original to the undersigned.

                          Herein, the term "ABV Replacement Contractor" shall mean Boeing
                          and/or a Boeing-designated third party. The term "transition
                          period" shall mean that time after the Parties hereto agree to
                          transition work under GMDS ABV subcontracts from performance by
                          Orbital to performance by an ABV Replacement Contractor.
</TABLE>

<PAGE>

1. Terms and conditions offered by Orbital in response to the referenced
Clarification Request:

   a. Custody of all property in which the government has a vested interest
   through such FAR clause flow-downs as FAR 52.245-5 [(DoD Deviation)
   Government Property (Cost-Reimbursement, Time-and-Material, or Labor-Hour
   Contracts)] will be transferred upon a transition to a Replacement ABV
   Contractor. Orbital's Launch Systems Group will maintain an effective
   material control system through which all such property will be segregated or
   conspicuously marked, to include (but is not limited to) work-in-progress and
   inventory.

   b. Orbital will provide in place use of Orbital-owned ground support
   equipment and/or tooling that is necessary to ABV contract deliveries for a
   period of one year (or such lesser period as required by the ABV Replacement
   Contractor), during which time the ABV Replacement Contractor shall have the
   option to purchase all or individual pieces of this equipment or to make
   other arrangements.

   c. (1) Orbital will deliver all documented intellectual property and data
   (including, but not limited to, software, drawings, processes, et cetera) in
   which the Government has a vested interest under the ABV contract, to include
   items ordered under deferred ordering clauses of the subcontract, to the ABV
   Replacement Contractor. (2) Orbital will provide access at cost to all
   company employees who may be able to assist in collation, interpretation,
   and/or implementation of such intellectual property and/or data. Further,
   Orbital agrees to permit the ABV Replacement Contractor to recruit and hire
   Orbital employees assigned to the ABV program during the transition period.

   d. Commencing at the start of any transition period, Orbital will grant
   Boeing and the ABV Replacement Contractor a License to use all Orbital-owned
   intellectual property necessary or beneficial to the ABV program on a
   rent-free basis.

   e. Orbital will make a good faith effort to negotiate into each ABV-unique
   subcontract the unilateral right to assign such subcontracts to a third
   party. Orbital will identify Boeing as a third party beneficiary with respect
   to deliveries for the ABV program in each of its relevant subcontracts.

   f. For subcontract and purchased ABV items that are to be delivered, or are
   delivered, after a transition occurs, Orbital will

<PAGE>

   redirect or forward the deliveries as specified by ABV Replacement Contractor
   (subject to appropriate payment arrangements).

   g. Orbital agrees, if a transition is to occur and subject to Government
   approval, to cede or assign any space it has, or is scheduled to use, for ABV
   in Government facilities, such as Vandenberg Air Force Base Missile Assembly
   Building, to the ABV Replacement Contractor.

   h. Commencing at the start of any transition period, Orbital will offer to
   Lease at a market rate portions of its own industrial facilities in Chandler,
   Arizona to the ABV Replacement Contractor for a period of one year (or such
   lesser period as required by the ABV Replacement Contractor)

   i. Orbital agrees to continue as long as practicable to support the ABV
   program on a cost reimbursement basis through any transition period.

2. Additional terms and conditions as agreed between the Parties.

   a. Audit Rights. [1] Seller, if requested by Boeing, shall provide financial
   data, on a quarterly basis, or as requested by the Boeing Credit Office for
   credit and financial condition reviews. Said data shall include, but is not
   limited to, balance sheets, schedule of accounts payable and receivable,
   major lines of credit, creditors, income statements (profit and loss), cash
   flow statements, firm backlog, and headcount. Copies of such data are to be
   made available within seventy-two (72) hours of any written request by
   Boeing. Boeing shall treat all such information as confidential in accordance
   with Boeing Procedure. [2] Orbital agrees to grant Boeing, within seventy-two
   hours of a request by Boeing, on a non-interference basis the right to have
   access to and the right to audit any directly pertinent books, technical
   and/or cost documents, papers, and records relating to costs billed on the
   ABV program.

   b. Option to Escrow Materials. At Boeing's request, Orbital agrees to place
   in escrow under an escrow agreement approved by Boeing, the cost of which
   shall be billed to Boeing, the then current versions of software, drawings,
   and processes [herein referred to as the Escrow Materials] necessary and/or
   beneficial to the design and the production efforts under the ABV
   subcontract(s) issued by Boeing to Orbital. The Escrow Materials to be stored
   by the Escrow Agent. One copy of the most current version of each item of
   Escrow Material will be provided to the Escrow Agent, including, but not

<PAGE>

   limited to, support materials such as existing annotated source code
   listings, flow charts, decision tables, schematics, drawings, specifications,
   documentation, design details, and other related documents and all technology
   necessary to understand the design, structure, and implementation of the
   Orbital deliverables as produced by Orbital under the ABV subcontract. Escrow
   Materials will be subject to release to Boeing by the Escrow Agent upon
   Boeing's request and (1) agreement of the Parties, or (2) the filing of a
   voluntary or involuntary petition in bankruptcy.

   c. Right of First Refusal. In the event financial conditions warrant, e.g. in
   the event of a voluntary bankruptcy or to preempt an involuntary bankruptcy,
   Orbital grants to Boeing a right of first refusal to acquire title to the
   assets and/or facilities, and Licenses to use intellectual property and data,
   that are necessary or beneficial in the production of the Orbital ABV.

If you have any questions or other comments, please contact either the
undersigned at (703) 872-5952 or Richard Kaake at (703) 413-6487.

Sincerely yours,

/s/ J.W. EVATT
J.W. Evatt
Executive Vice President & General Manager
Missile Defense Systems
The Boeing Company

Acknowledged as what will be included in any ABV subcontract:

/s/ DAVID W. THOMPSON
David W. Thompson
Chairman of the Board & Chief Executive Officer
Orbital Sciences Corporation

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