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BINDER

TYPE: AVIATION HULL, SPARES, AND LIABILITY INSURANCE INSURED: Baltia Air Lines,
Inc. and all subsidiaries, affiliated, managed, owned or controlled entities as
may now exist or hereafter are formed and acquired. ADDRESS: Building 151, Room
361
JFK International Airport
Jamaica, NY 11430
PERIOD: 12 months at January 30,2012 at 12:01 a.m. Local Standard Time at the
address of the Named Insured INTEREST: Hull:

To cover Aircraft owned, non-owned and/or operated or for which the Insured is
responsible as per schedule against All Risks of Physical Loss or Damage while
on the ground, including ferry and test flights.

Spares:

To cover all Aircraft Spares, pods, parts, spare part kits, tools, or equipment
(hereunder referred to as Spares) usually attached to and forming a part of an
Aircraft, but while not so attached and provided such Spares are owned by the
Named Insured or the property of others while in the care, custody or control of
the Named Insured and for which the Named Insured has agreed, in writing, to be
responsible for direct physical damage, against all risks of physical loss or
damage including while in transit.

Spare/Leased Engines:

Spare engines and aircraft engines leased to or operated by or on behalf of the
Named Insured against all risks of physical loss or damage while in flight,
taxiing or on the ground (whether attached to and forming part of an Aircraft or
as a Spare) for an Agreed Value each engine.

Liability:

To pay all sums which the Insured shall become legally Obligated to pay in
respect of Third Party (Bodily Injury and Property Damage), Passenger Legal
Liability, Non-Owned Aircraft Liability, Baggage, Cargo and Mail Liability
(including declared values), Medical, Funeral and Repatriation Expenses,
Personal Injury and Ground Liability including Premises, Products (including
Completed Operations), Contractual, Hangarkeepers (including in-flight) and
Non-Aviation Excess Liability, all as may arise from the Insured's Air Transport
Business.

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SUM INSURED: Hull: Agreed Values as per Schedule but subject to a Maximum Agreed
Value $15,000,000 anyone aircraft

Spares: $10,000,000 anyone location/anyone transit/any one occurrence

Spare/Leased Engines: Agreed Values as per Schedule but subject to a Maximum
Agreed Value $10,000,000 anyone engine

Liability:

Combined Single Limit $500,000,000 each occurrence and in the aggregate with
respect to Products and Completed Operations, however the following sub-limits
apply:

Grounding Liability limited to $125,000,000 anyone occurrence and in the
aggregate

Personal Injury $25,000,000 each offense and in the aggregate (except with
respect to passengers to whom the full Policy limit applies)

If required, Excess of Schedule of underlying insurances $25,000,000 each
occurrence excess of:

Employers Liability $1,000,000 anyone occurrence

Automobile Liability $1,000,000 anyone occurrence

DEDUCTIBLES: Hull:$1,000,000 each and every loss (not applicable to
total/arranged/constructive loss) Spares: $10,000 each and every loss

$500 each and every loss in respect of Mechanics' Tools

$10,000 each and every loss in respect of Buyer Furnished Equipment

Spare/Leased Engines: Whilst attached to an Aircraft the applicable All Risk
Hull deductible applies; when declared as a spare the applicable spares
deductible shall apply, but applicable Hull Deductible in respect of ingestion
damage.

Liability: $3,300 anyone loss (or tariff whichever is greater) in respect of
Baggage

$5,000 anyone loss in respect of Cargo

$2,500 anyone loss Hangarkeepers (Ground); Hull Deductible to apply in respect
of in flight In the event of a claim involving the application of more than one
deductible the highest applicable deductible shall be applied as an aggregate
deductible for all losses arising out of that claim.

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USES: As required by the Named Insured PILOTS: As approved by the Named Insured
SITUATION: Worldwide CONDITIONS: Noise and Pollution and Other Perils Exclusion
Clause AVN 46B in respect of Liabilities only (but not applicable to passengers,
crew, baggage, cargo or mail and paragraph 1(b) not applicable to pollution or
contamination of a product or products sold or supplied by the Insured).

Nuclear Exclusion Clause

Contractual provisions including hold harmless agreements, indemnity agreements,
waivers of subrogation, interline agreements, ACMI (Aircraft, Crew, Maintenance
and Insurance) agreements, charter agreements, code shares, additional insureds,
severability of interest, cross liability, breach of warranty, loss payees, and
standard lATA contracts that may arise from the Insured's Air Transport business
(subject AVN67B Airline Finance Lease Contract Endorsement where applicable)

War, Hi-jacking and Other Perils Exclusion Clause

Extended Coverage Endorsement (Aviation) Liability Clause AVN52E with paragraph
3 limitation of liability sublimit $150,000,000 anyone occurrence and in the
annual aggregate deleting all paragraphs except (b) of the War, Hijacking and
other perils exclusions clause AVN48B.

50/50 Provisional Claims Settlement Clause

Contract (Rights of Third Parties) Act 1999 Exclusion Clause AVN 72

Date Recognition Exclusion Clause AVN 2000A with Date Recognition Limited
Coverage Clauses AVN 2001 A and AVN 2002A

Automatic pro rata additions, deletions and substitutions of aircraft of similar
type (subject to maximum policy Agreed Value).

Asbestos Exclusion Clause

150% allowance for overhead/overtime on repairs performed by the Named Insured.

Premium payable quarterly

60 days notice of cancellation or non-renewal (10 days notice for nonpayment of
premium)

"Disappearance" to mean missing and not reported for five (5) days after the
commencement of a flight

AVN 57 (Canada) subject to AVS 102 (Canada)

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AVN 57 (USA) subject to AVS 102 (USA)

Search and Rescue/Removal of Wreckage/Foaming of Runways: $5,000,000 anyone
aircraft/anyone occurrence payable in addition to the limit and without
prejudice to any other claims under this policy

Non-Owned Aircraft Endorsement AVN.54 with paragraph (D) deleted, subject
Maximum seating capacity 294 (excluding crew)

Definition of "Mobile Equipment" to include any vehicle or auto operated on
designated restricted access airport premises

Agree to include dismantling costs under Hull Coverage

Fire Legal Liability $1,000,000

Medical Expenses incurred by the Insured in respect of passengers and crew
arising out of an occurrence irrespective of Legal Liability hereon

Claims are to be handled in accordance with North American Claims Handling
Agreement (NACHA) as issued by Slip Leader.

Certain Insurers agree to contribute up to $14,875 towards a Risk Management
Fund covering safety, security and/or risk management expenses, as required.

Service of Suit Clause (U.S.A.) (AVN 65 [amended] or its equivalent) Court of
competent jurisdiction within the State of New York SCHEDULE OF AIRCRAFT: As
held on file by JLT Aerospace (North America) Inc.

Make and Model Reg. No. MSN Hull Value Passenger Seats Boeing 747-200N706BL
21705 $7,000,000294 327

tba

PREMIUM: Deposit Premium of $883,475* payable in four quarterly installments as
follows: January 30, 2012:
April 30,2012:
July 30, 2012:
October 30,2012: $137,196
$137,196
$262,705
$346,378 * Including Lead Fee of $65,000

At expiration, the deposit premium will be adjusted to reflect earned.

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To the best of your knowledge, you have provided complete and accurate
information which would influence the judgment of an underwriter in determining
whether or not to underwrite the risk and, if so, upon what terms and at what
premium. If all such information has not been disclosed, insurers may have a
right to void the policy which will lead to claims not being paid. If you
believe that you have not complied with this duty please contact us immediately.

The duty of disclosure and the consequences of its breach may vary to a limited
degree from the foregoing dependent upon applicable law.

/ signature/ C.F. Engel
Signed: JLT Aerospace (North America) Inc. 9th Feb 2012
Date /signature/ Igor Dmitrowsky PRESIDENT
Signed: Baltia Air Lines, Inc. 2-9-12
Date

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SECURITY SHEET
POLICY TERM: January 30, 2012 to January 30, 2013, on both dates at 12:01 AM.
Local Standard Time at the address of the Named Insured.

INSURER POLICY NUMBER QUOTA SHARE Allianz Global Risks US Insurance Company
317 Madison Avenue, Suite 1110
New York, NY 10017 A1AL000433012AM 10.00% XL Specialty Insurance Company
One World Financial Center, 200 Liberty Street, 21st Floor
New York, NY 10281 UA00004496AV12A 10.00% Catlin Syndicate 2003 at Lloyd's
Per Catlin France S.AS.
37 rue de Caumartin
F-75009 Paris, France 944124 5.0000% Starr Surplus Lines Insurance Company
lronshore Specialty Insurance Company
Per Starr Aviation Agency, Inc.
3353 Peachtree Road NE, Suite 1000
Atlanta, GA 30326 SASLAMR63609812-01
IHM100144-01 8.0000%
5.0000% StarNet Insurance Company
Per Berkley Aviation, LLC
3780 State Street, Suite C
Santa Barbara, CA 93105 BA-12-01-00140 10.0000% National Union Fire Insurance
Company of Pittsburgh, PA
Per Chartis Aerospace
100 Colony Square, Suite 1000, 1175 Peachtree Street, N.E.
Atlanta, GA 30361 HL 1859938-04 12.5000% Lloyds Syndicate DRE 1400 (Alterra)
Great Lakes Reinsurance (UK) Ltd.
Per JLT Specialty Limited
One American Square
London EC3N 2JL, United Kingdom J51206057
J51206074 3.5000%
5.0000% Member Companies of Global Aerospace, Inc., as follows:
Mitsui Sumitomo Insurance Company of America
33018A121AAV
.4640% Tokio Marine & Nichido Fire Insurance Co. Ltd (USB).6185% Great Lakes
Reinsurance (UK) pic 2.2480% Mapfre Global Risks Compania Internacional de
Suguros y Reaseguros S.A
.5000% National Fire & Marine Insurance Company One Sylvan Way, Third Floor
Parsippany, NJ 07054 1.1695% Member Companies of La Reunion Aerienne
134 Rue Danton
92300 Levallois-Perret, France 2012160049 20.0000% Torus Insurance (Europe) AG
Genferstrasse 35
8002 Zurich, Switzerland 33018A121AAV 3.5000% International Insurance Company of
Hannover Ltd.
Per Inter Hannover
P.O.Box 22085
10422 Stockholm, Sweden BLT12HCOA1 2.5000% TOTAL__________
100.0000%

SEVERAL LIABILITY NOTICE: The subscribing tnsurers' obligations under contracts
of insurance to which they subscribe are several and not joint and are limited
solely to the extent of their individual subscriptions. The subscribing insurers
are not responsible for the subscription of any co-subscribing insurer who for
any reason does not satisfy all or part of its obligations. LSW 1001 (Insurance)