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LATA STANDARD GROUND HANDLING AGREEMENT

(SIMPLIFIED PROCEDURE)

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Annex 8.1 .0-Locations(s), Agreed Services and Charges to the Standard Ground
Handling Agreement (SGHA) of January 2008

between: Cargo Airport Services USA,
d/b/a Consolidated Aviation Services having its principal office at: Cargo
Building 261
JFK International Airport
Jamaica, New York, 11430 and {hereinafter referred to as "the Handling Company")
and Baltia Air Lines Inc. having its principal office at: Building 151
JFK International Airport
Jamaica, New York 11430 and {hereinafter referred to as "the Carrier")

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effective from: January 01,2015 This Annex B.1.0 for the locations: JFK
International Airport (JFK)
Building 151 is valid from: TBD and replaces: Nil

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PREAMBLE: This Annex B is prepared in accordance with the simplified procedure
whereby the Carrier and the Handling Company agree that the terms of the Main
Agreement and Annex A of the SGHA Version 2008 as published by the International
Air Transport Association shall apply as if such terms were repeated here in
fulL By signing this Annex B, the parties confirm that they are familiar with
the aforementioned Main Agreement and Annex A.

Annex B 1.0 WH Handling       Handling Co. Initials _ MD __       Carrier
Initials __RT___       CAS/Baltia JFK

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Paragraph 1 - Services and Handling Charges

1.1.       The Handling Company shall perform at its air cargo facility the
Annex A items enumerated in the following sub-paragraph 1.1.1:

1.1.1       CARGO

SECTION 1 -Representation, Administration and Supervision

Sub-section 1.1 General
1.1.1, 1.1.2, 1.13, 1.1.4

Sub-section 1.2 Administrative Functions
1.2.1, 1.2.2, 1.2.3 ((f) (g) (i)

SECTION 2 - Passenger Services
Not Applicable

SECTION 3 - Ramp Services
Not Applicable

SECTION 4-Load Control, Communications and Flight Operations
Not Applicable

SECTION 5 - Cargo and Mail Services

Sub-section 5.1 Cargo and Mail Handling -General
5.1.1, (a) (1 ,2,3,4) (c) (d), 5.1.2, (a) (1 ,2,3,4), 5.1.3 (a) (1 ,2,3,5,6,7),
5.1.4 (a,), 5.1.5, 5.1.6

Sub-section 5.2 Customs Control
5.2.1, 5.2.2, 5.2.3, 5.2.4

Sub-section 5.3 Irregularities Handling
5.3.1, 5.3.2, 5.5.3, 5.3.4 (a), 5.3.5

Sub-section 5.4 Document Handling
5.4.1, 5.4.2, 5.4.3

Sub-section 5.5 Physical Handling Outbound/Inbound
5.5.1' 5.5.2, 5.5.3, 5.5.4, 5.5.5, 5.5.6

Sub-section 5.6 Transfer/Transit Cargo
5.6.1, 5.6..2, 5.6.3 (a) (1), 5.6.4

Sub-section 5. 7 Post Office Mail
5.7.1, 5.7.2, 5.7.3 (a), 5.7.4 (a), 5.7.5, 5.7.6, 5.7.7(a) (1) (2), 5.7.8,
5.7.95.7.10

Annex B 1.0 WH Handling       Handling Co. Initials _MD_       Carrier Initials
__RT___       CAS/Baltia JFK

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SECTION 6 - Support Services

Sub-section 6.1 Accommodation
6.1.1(a)(b)

Sub-section 6.2 Automation/Computer Systems
6.2.1 (a) (b) (c) (1,2), 6.2.2 (a) (b) (c) (1,8)

Sub-section 6.3 Unit Load (ULD) Device Control
6.3.1 (a) (2), 6.3.2 ,6.3.3, 6.3.4, 6.3.5

Sub-section 6.6 Surface Transport
Provided by ramp service company..

SECTION 7 - Security

Sub-section 7.2 Cargo and Post Office Mail
7.2.1 (a) (1 ,2 ,3, 4, 5)

1..2       For the Cargo and Mail services enumerated in sub-paragraph 1.1.1
above,and based on the submitted tonnage forecast of 2 to 3 weekly flights
utilizing 8747 aircraft, the Carrier will be charged as follows:

JFK Unit Cost USD Unit Measure COMMENT Loose Cargo Handling $0.1250 Per kilo
Monthly minimum 100,000 kilos ULD Handling $95.00 Per unit Monthly max 10% of
total tonnaqe EU messaging fee $1.00 and $5.00 Per entry $1.00 electronic and
$5.00 manual entry Dry ice check $25.00 Per AWB Mail Handling Export $0.14 Per
kilo Built and scanned Mail Handling Import $0.12 Per kilo Delivered to USPS
     AWB Preparation $20.00 Per AWB DG acceptance $80.00 Per UN Human remains
Handling $75.00 Per shipment TSA cargo screening $225,00 Per flight Export only
Cargo transfer to OA $0.065 Per kilo Min. transfer on airport $135.00 AMS NA
Included in the kilo Rate

Quoted rates contained in this Annex B do not include any airport, city or state
taxes which may be imposed upon the Handling Company as a result of the
activities conducted for the Carrier.

1.3       No extra charge will be made for providing the services to the
Carrier's off schedule operation, ground interruption and/or overnight off
schedule operation provided that the services can be covered by existing shift
personnel. Any additional work resulting in additional costs must be pre-
approved by the Carrier's local representative.

Annex B 1.0 WH Handling       Handling Co. Initials _ MD __       Carrier
Initials __RT___       CAS/Baltia JFK

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1.4      No extra charges will be made for providing the service at night,
Saturday, Sunday or legal holidays.

1.5       Charges stated above are based on the Handling Company's current costs
and shall be fixed for the first year and adjusted each anniversary date
thereafter so long as this Annex Bis in effect, notwithstanding Article 11.11
and 11.12 of the Main Agreement. The Handling Company may adjust charges in an
amount equal to any increases in costs over which it has no practical control ,
provided such adjustments are made in accordance with Article 8.1.2 and notice
of any such increases is provided to Carrier in writing. All costs and cost
increases will be reviewed prior to the Annex B anniversary date. Cost and any
planned increases shall include but not be limited to rent, labor, insurance,
fuel and security shall not exceed the annual published CPl. Increases shall not
be charged to Carrier without approval however Carrier shall not unreasonably
withhold approval.

PARAGRAPH 2-Additional Charges

2.1       All other additional services and facilities not mentioned in Annex A
will be charged at the current published incidental handling rates of the
Handling Company.

2.2       Additional man hours requested by the Carrier over and above that
necessary to carry out the services set forth in Sub-Paragraph 1.1 shall be
provided at the following rates:

Supervisors $28.00 USD per man hour S/T $42.00 USD per man hour 0/T Agents
$24.00 USD per man hour S/T $36.00 USD per man hour 0/T

2.3       The Handling Company will provide exclusive office space at market
rate as requested.

2.4       Additional services not included in this Annex B will be provided at
the published CAS Ad hoc rates.

PARAGRAPH 3 - Disbursements

3.1       Any disbursements made by the Handling Company on behalf of the
Carrier will be reimbursed by the Carrier at cost plus an accounting surcharge
of 10%.

PARAGRAPH 4 - Limits of Liability

4.1       Article 8of the Main Agreement in its entirety shall apply as set
forth word for word herein.

4.2       The Handling Company reserves the right to object, challenge, litigate
or otherwise dispute at its sole discretion, any duties, levies, taxes,
assessments, liens or any other charge levied by any government or government
agency or authority. Should Carrier pay any of the aforementioned charges
without the written consent of the Handling Company, Carrier shall be solely
liable for such charges without set-off, charge back, pass through or any
deduction whatsoever to amounts due to Handling Company who shall have no
liability whatsoever for charges paid by Carrier.

PARAGRAPH 5 - Areas of Responsibility

5.1       The area of responsibility as mentioned in Sub-Sections 4.3 and 4.6 of
Annex A is the responsibility of the Carrier.

Annex B 1.0 WH Handling       Handling Co. Initials _MD_       Carrier Initials
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5.2       The Handling Company will provide non-exclusive office furniture,
computers, telephones and other office equipment and supplies related to the
handling of the Carrier's cargo work except in exclusive office areas.

5.3       The Handling Company will provide plastic pallet covers, shrink wrap
and skids.

5.4       The Handling Company will provide Cargo Spot system for US Customs
required AMS. Carrier will be responsible to transmit the manifest in accordance
with CBP requirements.

5.5       Carrier may furnish and install, at its own cost and expense, its
identification signs at the Handling Company's cargo warehouse. Such signs shall
be displayed, subject to the Handling Company and Airport approval as to number,
degree of permanence, design, location and size.

5.6       The Handling Company will provide scanners, chargers, hardware, and
internet connection for mail handling.

5. 7      The Carrier shall provide, at its own cost and expense, at start of
service only, such initial orientation or training of the Handling Company's
personnel as may be required in connection with the furnishing of services
hereunder.

5.8       A Service Level Agreement (SLA) mutually agreed between the Handling
Company and the Carrier will determine handling standards.

PARAGRAPH 6 - Transfer of Services

6.0       All materials and outside services used in the performance of this
Annex B as requested by the Carrier shall be charged to Carrier at the Handling
Company's acquisition cost plus an administrative handling surcharge of five
percent (5%).

6.1       The Handling Company shall have the right to sub-contract services and
will obtain prior written authorization from the Carrier prior to implementing
any sub-contracted or third party services.

6.2       The Handling Company will sub-contract security services to a
qualified security company and will ensure such company is authorized to operate
in accordance with Carrier's TSA Model Security Program. The Handling Company
will obtain prior written authorization from the Carrier prior to subcontracting
any such security services.

PARAGRAPH 7 - Settlement

7.1       Notwithstanding Sub-Article 7.2 of the Main Agreement, settlement of
the account shall be effected in local currency. The Handling Company shall
invoice the Carrier monthly at the rate of charges described in this Annex B,
and the Carrier shall pay such invoice (s) within thirty (30) days of receipt.
Date of receipt shall be the date of delivery to the local Cargo Manager of the
Carrier. The Handling Company's wire transfer information is as follows:

Account Name: Cargo Airport Services USA, LLC Bank: M and T Bank, P.O. Box 4607,
Buffalo, NY Account# 9853000371 ABA# 022000046 SWIFT Code MANTUS33

Annex B 1.0 WH Handling       Handling Co. Initials _MD_       Carrier Initials
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Billing shall be sent to the Carrier at the following address:

Baltia Air Lines Inc.
Building 151
JFK International Airport
Jamaica, New York 11430
Attn: Mr. Russell Thal
E-mail: russ.thal@baltia.com
Phone: (718) 244-88.80

7.2       Invoices payments not received by the Handling Company within thirty
(30) days of invoice date shall accrue a late charge calculated at 1.5% per
month until received.

PARAGRAPH 8 - Supervision and Administration

Not Applicable

Paragraph 9 - Duration, Modification and Termination

9.1       Duration

9.1.1       Notwithstanding Article 11.4 and 11.5 of the Main Agreement, the
initial term of this Annex B shall be for a period of three (3) years.
Thereafter it shall continue from year to year unless either party notifies the
other party in writing ninety (90) days prior to such renewal date of its intent
not to renew.

9.1.2       Notwithstanding Sub-Article 11.11 of the Main Agreement the rates
contained in Paragraph 1 shall be fixed for the first year and adjusted each
anniversary date thereafter so long as this Annex B is in effect. The adjustment
will be in the amount equal to the percentage of increase in the Consumer Price
Index (CPI) published by the United States Government for the geographic region
beginning from the previous anniversary date and ending on the day before the
adjustment anniversary date multiplied by the prices and rates established of
the previous anniversary.

9.2       Modification

9.2. 1       Any modification to this Annex Bshall be made by awritten amendment
signed by both parties.

9.2.2       Notwithstanding Article 11 of the Main Agreement the Handling
Company shall be permitted to assign this Annex B to its senior secured lenders,
provided that, the Handling Company shall remain liable for all of its
obligations following such assignment

10.3       Termination

10.3.1      Notwithstanding Sub-Paragraph 8.1 .1 of this Annex B, this Annex B
may be terminated by either party at any time with ninety (90) days of written
notice to the other party.

Annex B 1.0 WH Handling       Handling Co. Initials _MD_       Carrier Initials
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PARAGRAPH 11 - Notification

In accordance with Sub-article 11.3 of the Main Agreement, any notice or
communication to be given hereunder shall be sent via Certified Mail return
receipt requested and be addressed to the respective parties as follows:

To Carrier: To Handling Company: Baltia Air Lines Inc.
Building 151, JFK International Airport W
Jamaica, New York 11430
Attention: Mr. Russell Thal
Phone: (718) 244-8880
Email: russ.thal@baltia.com Cargo Airport Service USA., LLC dba
Consolidated Aviation Services
Building 261, JFK International Airport
Jamaica, New York 11430
Attention: Michael A. Duffy
Phone: (718) 244-0900
mduffy@casusa.com

PARAGRAPH 12 - Governing Law

12.1       In accordance with Article 9 of the Main Agreement, this Annex B
shall be governed by and interpreted in accordance with the laws of New York,
USA.

12.2       In accordance with Article 9 of the Main Agreement, courts for the
resolution of disputes shall be the Southern District Courts of New York, USA.

PARAGRAPH 13 -Insurance

13.1       The Customers and the Handling Company's General Liability Insurance
Coverage shall include comprehensive general liability insurance covering bodily
injury liability, including death and property damage liability, product and
completed operations liability and comprehensive automobile liability insurance
covering hired and non-owned vehicles operated at JFK Airport excluding any
liability under applicable road traffic acts or similar law in the amount of
$25,000,000.00 USD, each occurrence, or such higher limit as may be carried.

The foresaid policies of insurance shall also provide or contain an endorsement
of Cargo Airport Services USA LLC , Japan Management Company and the Port of
Authority of New York and New Jersey as additionally insured.

13.2       The Handling Company will name the Customer as additionally insured
and provide copies of the insurance certificates within fifteen (15) days of the
commencement of service. The Handling Company will advise the Customer of any
changes in the insurance coverage policy.

Annex B 1.0 WH Handling       Handling Co. Initials _MD_       Carrier Initials
__RT___       CAS/Baltia JFK

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PARAGRAPH 14-ACCEPTANCE

14.1       In lieu of execution of this Annex B, acceptance of the services
herein specified shall constitute the Carrier's acceptance of the terms and
conditions herein specified.

Signed the _26_ of _SEP_ 2014
At _JFK,_NY___

For and on behalf of
Cargo Airport Services USA, dba
Consolidated Aviation Services

By: ___/signed/____
      Michael A. Duffy
      President & CEO Signed the _30_ of _SEP_ 2014
At _JFK,_NY___

For and on behalf of
Baltia Air Lines Inc.

By: ___/signed/____
      Mr. Russell Thal
      Executive Vice President

  

  

  

  

  

Annex B 1.0 WH Handling       Handling Co. Initials _MD_       Carrier Initials
__RT___       CAS/Baltia JFK

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