EXHIBIT 10.7

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LOCKTON
713 LCI

AVIATION

Policy Number
AVNPE1200089

Insured
Baltia Airlines

Reinsured

File Name
Excess Aviation Liability Insurance

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For LPSO use

  

  

  

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For ILU use

  

  

  

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For LIRMA use

  

  

  

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

RISK DETAILS

UNIQUE MARKET
REFERENCE: B0713AVNPE1200089 TYPE: EXCESS AVIATION LIABILITY INSURANCE INSURED:
BALTIA AIRLINES, INC ADDRESS: Building 151, Room 361
JFK International Airport
Jamaica NY 11430 PERIOD: From 8th January 2013 to 8th January 2014 both days at
00.01 hours Local Standard Time at the address of the Insured. INTEREST: To
cover the Insured's Ground Third Party legal liability, Premises Liability and
Contractual Liability from their airline/ aviation operations all as more fully
defined in Primary Policy SUMS INSURED: This Policy is to pay the difference
between Total Limits of:

Combined Single Limit (Bodily Injury /Property Damage/Passenger Bodily Injury
/Personal Injury) USD100,000,000 each occurrence/aircraft/unlimited in all.

and Primary limits of:

Combined Single Limit (Bodily Injury /Property Damage/Passenger Bodily Injury
/Personal Injury) USD10,000,000 each occurrence/ aircraft/unlimited in all.

Legal Costs and Expenses are payable in addition to the above limits.

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

SUMS INSURED
CONTINUED: SITUATION: As Primary Policy. CONDITIONS: Excess Aviation Liability
Form A VN37B except as amended herein.

As Primary Policy.

A VN38B Nuclear Risks Exclusion Clause or equivalent as Primary.

A VN46B Noise and Pollution And Other Perils Exclusion Clause and writebacks as
Primary.

Additional Insureds, Hold Harmless Agreements and other

contractual provisions included hereunder as more fully set forth in the Primary
Policy. Contracts (Rights of Third Parties) Act 1999 Exclusion Clause AVN72.

Date Recognition Exclusion Clause A VN2000A. Date Recognition Limited Coverage
Clause A VN2001A. Asbestos Exclusion Clause 2488 AGM 00003. Severability of
Interest Clause 713NHG00417 Sanctions and Embargo Clause A VN111 All reference
in any wording or clause to ''Aircraft" is amended to read "aircraft". All
reference in any wordings or clauses to 'Vnderwriters" is amended to read
"Insurers" and "Assured" is amended to read "Insured".

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

CONDITIONS
(CONTINUED):
NOMINEE FOR
NOTICES:

Lockton Companies ILP
The St Botolph Building
138 Houndsditch
London
EC3A 7AG NOTICES: None EXPRESS
WARRANTIES: None CONDITIONS
PRECEDENT: None SUBJECTIVITIES: None CHOICE OF
EXCLUSIVE LAW AND
JURISDICTION: This Insurance shall be governed by and construed in accordance
with the law of New York in any dispute arising hereunder.

And subject to Service of Suit Clause A VN65 (USA) Nominee: Mendes and Mount
7th Avenue
New York
NY 100

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

PREMIUM
(annual and pro-rata):
USD27,500 in full

TRIEA: APPLICABLE

Additional Premium in respect of TRIEA:

Premium Allocation in respect of TRIEA coverage provided by AVN52E: %

Insurers hereon that are subject to TRIEA agree to allow the Slip Leader to
quote premium and issue notice on their behalf if required

Cover Note/Policy to include U.S. Terrorism Risk Insurance Act of 2002 Not
Purchased Clause LMA5092 in full ifTRIEA Not Purchased, or U.S. Terrorism Risk
Insurance Act of2002 New and Renewal Business Endorsement LMA5091 in full if
TRIEA Purchased

Final position if TRIEA applicable: NOT PURCHASED

NOTICE DATED ................................ .

Reporting and payment of US Federal Excise Tax in relation to this (re)insurance
is the responsibility of each individual (re)insurer where PET is due for their
share.

PAYMENT TERMS: Premium payable in Full with 60 days of inception. TAXES PAYABLE
BY
INSURED AND
ADMINISTERED BY
INSURERS: None

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

INSURER CONTRACT
DOCUMENTATION:

This Document details the contract terms entered into by the Insurer(s) and
constitutes the contract document

This Contract is subject to US state surplus lines requirements. It is the
responsibility of the surplus lines broker to affix a surplus lines notice to
the contract document before it is provided to the insured. In the event that
the surplus lines notice is not affixed to the contract document the insured
should contact the surplus lines broker.

Lockton Companies ILP and Agents authorised to issue evidence of insurance as
may be required subject to policy coverage, terms, conditions, limitations and
exclusions.

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

INFORMATION Primary Policy Number:
Primary Insurers: TBA
MeadowBrook

  

  

  

  

  

  

  

  

  

  

  

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

SECURITY DETAILS SECTION INSURER'S LIABILITY:

Insurer's liability several not joint

The liability of a insurer under this contract is several and not joint with
other insurers party to this contract. A insurer is liable only for the
proportion of liability it has underwritten. A insurer is not jointly liable for
the proportion of liability underwritten by any other insurer. Nor is a insurer
otherwise responsible for any liability of any other insurer that may underwrite
this contract.

The proportion of liability under this contract underwritten by a insurer (or,
in the case of a Lloyd's syndicate, the total of the proportions underwritten by
all the members of the syndicate taken together) is shown next to its stamp.
This is subject always to the provision concerning "signing" below.

In the case of a Lloyd's syndicate, each member of the syndicate (rather than
the syndicate itself) is a insurer. Each member has underwritten a proportion of
the total shown for the syndicate (that total itself being the total of the
proportions underwritten by all the members of the syndicate taken together).
The liability of each member of the syndicate is several and not joint with
other members. A member is liable only for that member's proportion. A member is
not jointly liable for any other member's proportion. Nor is any member
otherwise responsible for any liability of any other insurer that may underwrite
this contract. The business address of each member is Lloyd's, One Lime Street,
London EC3M 7HA. The identity of each member of a Lloyd's syndicate and their
respective proportion may be obtained by writing to Market Services, Lloyd's, at
the above address.

Proportion of liability

Unless there is "signing'' (see below), the proportion of liability under this
contract underwritten by each insurer (or, in the case of a Lloyd's syndicate,
the total of the proportions underwritten by all the members of the syndicate
taken together) is shown next to its stamp and is referred to as its "written
line".

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

INSURER'S LIABILITY
(CONTINUED): Where this contract permits, written lines, or certain written
lines, may be adjusted ("signed"). In that case a schedule is to be appended to
this contract to show the definitive proportion of liability under this contract
underwritten by each insurer (or, in the case of a Lloyd's syndicate, the total
of the proportions underwritten by all the members of the syndicate taken
together). A definitive proportion (or, in the case of a Lloyd's syndicate, the
total of the proportions underwritten by all the members of a Lloyd's syndicate
taken together) is referred to as a "signed line". The signed lines shown in the
schedule will prevail over the written lines unless a proven error in
calculation has occurred.

Although reference is made at various points in this clause to "this contract"
in the singular, where the circumstances so require this should be read as a
reference to contracts in the plural.

21/6/07
LMA3333

ORDER HEREON: 100% of Whole BASIS OF
WRITTEN LINES:
Percentage of Whole SIGNING
PROVISIONS:
In the event that the written lines hereon exceed 100% of the order, any lines
written "to stand" will be allocated in full and all other lines will be signed
down in equal proportions so that the aggregate signed lines are equal to 100%
of the order without further agreement of any of the insurers However. (a) in
the event that the placement of the order is not completed by the commencement
date of the period of insurance then all lines written by that date will be
signed in full; (b) the Insured may elect for the disproportionate signing of
insurers' lines, without further specific agreement of insurers, provided that
any such variation is made prior to the commencement date of the period of
insurance, and that lines written "to stand" may not be varied without the
documented agreement of those insurers;

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

(c) the signed lines resulting from the application of the above provisions can
be varied, before or after the commencement date of the period of insurance, by
the documented agreement of the insured and all insurers whose lines are to be
varied. The variation to the contracts will take effect only when all such
insurers have agreed, with the resulting variation in signed lines commencing
from the date set out in that agreement.

  

  

  

  

  

  

  

  

  

  

  

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

  

  

  

  

Signed Line % Written Line%

  

  

  

Kiln Aviation (anchor) KLN 510

100/ 3 6 1 1 7 H 1 3

NNNNNANN (initials) 8    
1    
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In a co-insurance placement, following (re)insurets may, but are not obliged to,
follow the premium charged by the lead (re)insuret.

(Re)insurers tnay not seek to guarantee for themselves terms as favourable as
those to which others subsequently achieve during the placement.

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

Facultative Direct

SUBSCRIPTION AGREEMENT SLIP LEADER: Kiln Aviation Syndicate 510 BUREAU LEADER:
BASIS OF
AGREEMENT TO
CONTRACT
CHANGES: Any amendments to be agreed per A VS 1 OOB amended so that Box 1 or 2
are agreed by Slip Leader (and ............................. ).

Box 3 of A VS 1 OOB to be agreed all Insurers unless the slip provides otherwise
in which case only the Slip Leader (and the other insurer identified) above
shall agree where specifically provided. BASIS OF CLAIMS
Claims to be managed in accordance with:

i) The lloyd's Claims Scheme (Combined), or as amended or any successor thereto.

ii) IUA claims agreement practices.

iii) The practices of any company(ies) electing to agree claims in respect of
their own participation. CLAIMS AGREEMENT PARTIES: Claims to be agreed by the
Slip Leader and

i) For lloyd's syndicates

The leading lloyd's syndicate and, where required by the applicable lloyd's
Claims Scheme, the second lloyd's syndicate and/ or the Scheme Service Provider.

The second Lloyd's Syndicate is .................................. .

Those comparties acting in accordance with the IUA claims agreement practices,
excepting those that may have opted out via iii below.

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

Facultative Direct

CLAIMS AGREEMENT PARTIES
(CONTINUED):

ii) Those companies that have specifically elected to agree claims in respect of
their own participation.

. . . . . . . . . . . . . . . . .

iii) All other subscribing insurers that are not party to the Lloyd's/IUA claims
agreement practices, each in respect of their own participation.

CLAIMS ADMINISTRATION:
Lockton Companies LLP and insurers agree that any claims hereunder (including
any claims related costs/fees) will be notified and administered via the
Electronic Claims File (ECF) with any payment(s) processed via CLASS, unless
both parties agree to do otherwise. RULES AND EXTENT
OF ANY OTHER
DELEGATED CLAIMS
AUTHORITY: None unless otherwise stated herein. EXPERT(S) FEES
COLLECTION:
In respect of Claims related experts Fees:

Broker to collect fees.

SETTLEMENT DUE
DATE:
60 days from inception. BUREAUX ARRANGEMENTS:
Agree issue FDO signings hereon as required, but the Settlement Due Date shown
above remain unaltered.

Where Settlement Due Date (SDD), Premium Payment Condition (PPC) OR Premium
Payment Warranty falls on a weekend or public holiday, presentation to LPSO/XIS
(Ins-Sure) or Insurer(s) hereon as applicable on the next working day will be
deemed compliant with SDD, PPC or PPW. Where the PPC or PPW is later than the
SDD, the SDD is automatically deemed updated to be the same as the PPC or PPW.

Insurers agree to accept/settle accounts at rate of exchange declared by

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

facultative Direct

Lockton Companies LLP. BUREAUX
ARRANGEMENTS
(CONTINUED):

Insurer(s) to sign any deferred premium instalments as Additional Premium(s);
however any annual instalments to be allocated to respective year of account

Premium Processing Clause LSW 3003

Where Slip Leader agrees to an extension of Settlement Due Date above by
endorsement Settlement Due Date shown above are automatically extended by period
shown on endorsement

NON-BUREAUX
ARRANGEMENTS: In order to comply with any premium payment terms, the premium for
non-bureaux companies will be credited within the statement of the month open at
either the date the amount is due or the date settlement is received from the
Client, whichever is the later, subject to the terms and conditions of the
Policy.

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Policy Number
    AVNPE1200089
Insured / account
    Baltia Airlines
Unique market reference number
    B0713AVNPE1200089

Facultative Direct

FISCAL AND REGULATORY TAX PAYABLE BY
INSURERS:
None COUNTRY OF ORIGIN: United States of America OVERSEAS BROKER: Aviation Risk
Management Associates, Inc
377 W.Virginia Street
Crystal Lake
Illinois 60014
United States of America U.S.
CLASSIFICATION:
Non Regulated - MAT Exemption ALLOCATION OF
PREMIUM TO CODING:
L3 FSA CLIENT
CLASSIFICATION:
Large Risk

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