AMENDMENT NO. 3 TO CREDIT AGREEMENT AMENDMENT No. 3 dated as of August 23, 1995 among ORBITAL SCIENCES CORPORATION (the "Company"), ORBITAL IMAGING CORPORATION and FAIRCHILD SPACE AND DEFENSE CORPORATION, the BANKS listed on the signature pages hereof, MORGAN GUARANTY TRUST COMPANY OF NEW YORK, as Administrative Agent (the "Administrative Agent"), and J.P. MORGAN DELAWARE, as Collateral Agent. W I T N E S S E T H : WHEREAS, the parties hereto have heretofore entered into an Amended and Restated Credit and Reimbursement Agreement dated as of September 27, 1994 (as amended from time to time, the "Agreement"); and WHEREAS, the parties hereto desire to amend the Agreement as set forth below; NOW, THEREFORE, the parties hereto agree as follows: SECTION 1. Definitions; References. Unless otherwise specifically defined herein, each term used herein that is defined in the Agreement shall have the meaning assigned to such term in the Agreement. Each reference to "hereof", "hereunder", "herein" and "hereby" and each other similar reference and each reference to "this Agreement" and each other similar reference contained in the Agreement shall from and after the date hereof refer to the Agreement as amended hereby. SECTION 2. Decrease in the Minimum Consolidated Fixed Charges Ratio. Section 5.10 of the Agreement is amended to read in its entirety as follows: SECTION 5.10. Consolidated Fixed Charge Ratio. At the last day of any fiscal quarter, the ratio of Earnings Available for Fixed Charges to Consolidated Fixed Charges for the four consecutive fiscal quarters then ended will not be less than 1.10 to 1. For purposes of this Section 5.10, the fiscal quarters of the Company ended June 30, 1994 and June 30, 1995, respectively, shall be excluded from any determination of any period of four consecutive fiscal quarters (e.g. the fiscal quarters ended March 31, 1994, September 30, 1994, December 31, 1994 and March 31, 1995) shall constitute four consecutive fiscal quarters for purposes of this Section 5.10). SECTION 3. Additional Permitted Investment. Section 5.07 of the Agreement is amended by: (i) deleting the preposition "and" at the end of clause (e) thereof; (ii) renumbering clause (f) thereof as clause (g); and (iii) inserting a new clause (f) immediately following clause (e) thereof, to read in its entirety as follows: "(f) Investments made by the Company to acquire Macdonald, Dettwiler and Associates Ltd. ("MDA"), substantially on the terms described by the Company to the Banks in the draft of the Combination Agreement with respect to such acquisition, a copy of which has been delivered to each of the Banks, up to an amount not in excess of the value of 4,800,000 shares of common stock of the Company; and" SECTION 4. New York Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York. SECTION 5. Counterparts; Effectiveness. This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Amendment shall become effective on the date on which the Administrative Agent shall have received (i) duly executed counterparts hereof signed by the Borrowers and the Required Banks (or, in the case of any party as to which an executed counterpart shall not have been received, the Administrative Agent shall have received telegraphic, telex or other written confirmation from such party of execution of a counterpart hereof by such party) and (ii) for the account of each Bank, an amendment fee equal to 1/8 of 1% of such Bank's Commitment as in effect on such date. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written. ORBITAL SCIENCES CORPORATION By /s/ Carlton S. Crenshaw Title: Sr. Vice President/Finance Administrator and Treasurer ORBITAL IMAGING CORPORATION By /s/ Carlton B. Crenshaw Title: Chief Financial Officer and Treasurer FAIRCHILD SPACE AND DEFENSE CORPORATION By /s/ Carlton B. Crenshaw Title: Treasurer MORGAN GUARANTY TRUST COMPANY OF NEW YORK By /s/ Kevin J. O'Brien Title: Vice President THE BANK OF NOVA SCOTIA By /s/ J. Alan Edwards Title: Authorized Signatory SIGNET BANK/VIRGINIA By /s/ Ronald K. Hobson Title: Vice President NATIONSBANK, N.A. By /s/ James W. Gaitten Title: Vice President THE BANK OF TOKYO TRUST COMPANY By /s/ J. Andrew Don Title: Vice President THE DAIWA BANK, LIMITED By /s/ Louanne Baily Title: Vice President and Manager By /s/ R.M. Shehorn Title: SVP & RM MIDWEST