CONFIRMATION. Derivatives Documentation Fixed Income Derivatives Confirmation

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1 BEAR STEARNS BEAR STEARNS CAPITAL MARKETS INC. 383 MADISON AVENUE NEW YORK, NEW YORK (212) CONFIRMATION DATE: TO: ATTENTION: TELEPHONE: FACSIMILE: FROM: TELEPHONE: FACSIMILE: SUBJECT: Airport Commission ofthe City and County of San Francisco Ben Kutnick (650) (650) Derivatives Documentation Fixed Income Derivatives Confirmation REFERENCE NUMBER(S): CXNE244571, a CIFG Insured Transaction The purpose of this letter agreement is to confirm the terms and conditions of the Transaction entered into on the Trade Date specified below (the "Transaction") between Bear Stearns Capital Markets Inc. ("BSCM") and Airport Commission of the City and County of San Francisco ("Counterparty"). This letter agreement constitutes the sole and complete "Confirmation," as referred to in the Master Agreement specified below, with respect to this Transaction. 1. This Confirmation is subject to and incorporates the 2000 Definitions (the "Definitions"), as published by the International Swaps and Derivatives Association, Inc. ("ISDA"). This Confirmation supplements, forms a part of and is subject to the ISDA Master Agreement dated as of between BSCM and Counterparty (the agreement, as amended and supplemented from time to time, being referred to herein as the "Master Agreement"). All provisions contained in, or incorporated by reference to, the Master Agreement shall govern the Transaction referenced in this Confirmation except as expressly modified herein. In the event of any inconsistency between this Confirmation and the Definitions or Master Agreement, this Confirmation shall prevail. 2. The terms ofthe particular Transaction to which this Confirmation relates are as follows: Notional Amount: (i) USD 89,856,000 for the initial Calculation Period, and (ii) the amount as detailed in the Schedule of Notional Amounts attached hereto.

2 Airport Commission ofthe City and County ofsan Francisco Page 2 of6 Trade Date: Effective Date: Termination Date: February 1,2008 May 1, 2029 (such date shall be subject to adjustment in accordance with the Following Business Day Convention). Fixed Amounts: Fixed Rate Payer: Fixed Rate Payer Payment Dates: Fixed Rate Payer Period End Dates: Fixed Rate: Fixed Rate Day Count Fraction: Counterparty The first calendar day of each month during the Term of this Transaction, commencing March 1, 2008 and ending on the Termination Date, subject to adjustment in accordance with the Following Business Day convention. The first calendar day of each month during the Term of this Transaction, commencing on March 1, 2008 and ending on the Termination Date, not subject to adjustment % 30/360 Floating Amounts: Floating Rate Payer: Floating Rate Payer Payment Dates: Floating Rate Payer Period End Dates: Floating Rate: BSCM The first calendar day of each month during the Term ofthis Transaction, commencing March 1, 2008 and ending on the Termination Date, subject to adjustment in accordance with the Following Business Day Convention. The first calendar day of each month during the Term on of this Transaction, commencing on March 1, 2008 and ending on the Termination Date, not subject to adjustment. (i) 61.85% ofusd-libor-bba plus Spread.

3 Airport Commission ofthe City and County ofsan Francisco Page 3 of6 Spread: Designated Maturity Floating Rate Day Count Fraction: Reset Dates: Compounding: Business Days: Calculation Agent: 34bps 1 month Actual/360 The first calendar day of each month during the Term of this Transaction. Inapplicable New York BSCM 3. Account Details/Settlements: Payments to BSCM: Citibank, N.A., New York ABA Number: , for the account of Bear, Stearns & Co. Inc. Account Number: , for further credit to Bear Stearns Capital Markets Inc. Sub-account Number: Attention: Matthew 1. Redshaw Payments to Counterparty: The Bank ofnew York ABA # Account Number: GLA For further credit to A/C # TAS CUST: SFIA Issue 34 int fund RE: Attn: 1. Tokunaga at Contact Names at BSCM: Rate Fixings: Derivatives Operations Payments: Derivatives Operations Confirmation and ISDA Queries: Derivatives Documentation Adjustment Event: (A) If on the later of (i) the Effective Date or (ii) the date the Related Bonds are issued or any date thereafter, the Notional Amount is greater than the outstanding principal amount of the Related Bonds, an "Adjustment Event" occurs and the Notional Amount shall be reduced, in each case within 90 days (each, an "Adjustment Event Date"), to the extent necessary

Airport Commission ofthe City and County of San Francisco July 26,2007 Page 4 of6 to make such Notional Amount as of the Adjustment Event Date (together with the notional amount as ofsuch date ofall

4 Airport Commission ofthe City and County of San Francisco July 26,2007 Page 4 of6 to make such Notional Amount as of the Adjustment Event Date (together with the notional amount as ofsuch date ofall other interest rate swaps entered into in connection with the Related Bonds) not exceed the outstanding principal amount ofthe Related Bonds on such date. (B) Upon an adjustment to the Notional Amount, a payment (each, an "Adjustment Payment") will be due and owing by one party to the other equal to the Market Quotation for this Transaction determined by BSCM as if (i) a Termination Event occurred in respect of Counterparty, (ii) Counterparty was the only Affected Party with respect to such Termination Event, BSCM was the party entitled to calculate the Market Quotation, and the Transaction is the Affected Transaction, (iii) the relevant Adjustment Event Date was designated as the Early Termination Date, and (iv) the Notional Amount of the Transaction was an amount equal to the difference between (X) the Notional Amount, and (Y) the outstanding principal amount of the Related Bonds on the Adjustment Event Date. If an Adjustment Payment is a negative number, BSCM will pay an amount equal to the absolute value of such Adjustment Payment to Counterparty. An Adjustment Payment shall be paid by the relevant party on the date on which the Adjustment Event occurs. (C) Notwithstanding anything to the contrary in this Agreement, Counterparty will not optionally cause an Adjustment Event if, in connection with such Adjustment Event, an Adjustment Payment would be payable by Counterparty to BSCM unless Counterparty provides evidence reasonably satisfactory to BSCM and the Insurer that (i) such Adjustment Payment will not cause Counterparty to be in violation of, or in default under, the documentation relating to the Related Bonds, and (ii) Counterparty has (or will have on or prior to the date of any Adjustment Payment) sufficient funds available to pay any Adjustment Payment that would be payable by Counterparty to BSCM in connection with such Adjustment Event. "Related Bonds" means the Airport Commission of the City and County of San Francisco, California San Francisco International Airport Second Series Variable Rate Revenue Refunding Bonds, Issue 34". 6. Non-Issuance Termination Event: It shall be an Additional Termination Event with respect to Counterparty if the Related Bonds are not issued on or before May 1, For purposes of the foregoing Additional Termination Event, Counterparty shall be the sole Affected Party and this Transaction shall be the sole Affected Transaction. Notwithstanding anything to the contrary in the Schedule, BSCM may designate an Early Termination Date with respect to the foregoing Additional Termination Event without the consent ofthe Insurer.

5 Airport Commission ofthe City and County ofsan Francisco Reference Number: CXNE244571, a CIFC Insured Transaction Page 5 of6 This Confirmation may be executed in several counterparts, each of which shall be deemed an original but all ofwhich together shall constitute one and the same instrument. Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly sets forth the terms of the Transaction by signing in the space provided below and returning to BSCM a facsimile of the fully-executed Confirmation to For inquiries please contact Levi Woodward by telephone at Originals will be provided for your execution upon your request. We are very pleasedto have executedthis Transaction withyou and we lookforward to completing other transactions with you in the near future. Very truly yours, BEAR STEARNS CAPITAL MARKETS INC. By: Name: Title: ~-;-;;PH ::J Sanlor ~nnarlllg SALVADORE Director AIRPORT COMMISSION OF THE CITY AND COUNTY OF SAN FRANCISCO By: Name: Title: (Authorized Signatory)

6 AUG :10 CAD :AIRPDRT DIV P.02 Airport Commission of the City and County of San Francisco Page 5 of6 This Confirmation may be executed in several counterparts, each of which shall be deemed an original but all ofwhich together shall constitute one and the same instrument. Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly sets forth the terms of the Transaction by signing in the space provided below and returning to BSCM a facsimile of the fully-executed Confirmation to )707. For inquiries please contact Levi Woodward by telephone at Originals will be provided for your execution upon your request. We are very pleased to have executed this Transaction with you and we look forward to completing other transactions with you in the near future. vcry truly yours, BEAR STEARNS CAPITAL MARKETS INC. By: Name: Title: AIRPORT COMMISSION OF THE CITY AND COUNTY OF SAN FRANCISCO By: N.me~. Marei-n--- Title: Airport Director (Authorized Signatory) Approved as to fbm1: DENNIS J. HERRERA City Attorney

7 Airport Commission ofthe City and County of San Francisco Page 5a of6 Acknowledged: CIFG ASSURAN NORTH AMERICA, INC. By: :-::----+-F Name: Title: Robert M. Drllllngs Date: July 2~~lng Director and Vice President

8 Airport Commission ofthe City and County ofsan Francisco Page 6 of6 SCHEDULE OF NOTIONAL AMOUNTS (all such dates subject to adjustment in accordance with the Modified Following Business Day Convention) From and including To but excluding Applicable Notional Amount Period Start Period End Notional Amount Effective Date 5/1/ ,856,000 5/1/2008 5/1/ ,856,000 5/1/2009 5/1/ ,856,000 5/1/2010 5/1/ ,856,000 5/1/2011 5/1/ ,856,000 5/1/2012 5/1/ ,856,000 5/1/2013 5/1/ ,856,000 5/1/2014 5/1/ ,459,000 5/1/2015 5/1/ ,045,000 5/1/2016 5/1/ ,616,000 5/1/2017 5/1/ ,899,000 5/1/2018 5/1/ ,107,000 5/1/2019 5/1/ ,473,000 5/1/2020 5/1/ ,712,000 5/1/2021 5/1/ ,255,000 5/1/2022 5/1/ ,599,000 5/1/2023 5/1/ ,639,000 5/1/2024 5/1/ ,657,000 5/1/2025 5/1/ ,294,000 5/1/2026 5/1/ ,533,000 5/1/2027 5/1/ ,755,000 5/1/2028 Termination Date 9,047,000

CONFIRMATION. REFERENCE NUMBER(S): CXNE244571, a Financial Security Assurance Inc. Insured Transaction -Amended III

CONFIRMATION. REFERENCE NUMBER(S): CXNE244571, a Financial Security Assurance Inc. Insured Transaction -Amended III BEAR STEARNS CAPITAL MARKETS INC. 383 MADISON AVENUE NEW YORK, NEW YORK 101 79 (21 2) 272-2000 CONFIRMATION DATE: "Avril 8, 2008 TO: Airport Commission of the City and County of San Francisco ATTENTION: