UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549

                                 FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

     For the quarterly period ended  March 31, 1998                        

                                    OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
     SECURITIES EXCHANGE ACT OF 1934

                      Commission File Number 0-10198

                         The San Francisco Company                         
          (Exact name of Registrant as specified in its charter)

 Delaware                                 94-3071255 
(State or other jurisdiction of 
 incorporation or organization)          (I.R.S. Employer Identification No.)

 
 550 Montgomery Street, San Francisco, California                    94111 
 (Address of principal executive office)                         (Zip Code)

                              (415) 781-7810                               
           (Registrant's telephone number, including area code)

                                   None                                    
     (Former name, former address and former fiscal year, if 
                    changed since last report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.

                    Yes  X               No        

The Registrant had 31,723,782 shares of Class A Common Stock
outstanding on May 1, 1998.

page

                The San Francisco Company and Subsidiaries
                       Quarterly Report on Form 10-Q

                             Table of Contents
 

                                                            Page

Part I - Financial Information 

Item 1.   Consolidated Statements of Financial Condition
           At March 31, 1998 and December 31, 1997 . . . . . . 1

          Consolidated Statements of Operations
           For the Three Months Ended March 31, 1998 and 1997. 2

          Consolidated Statements of Changes in Shareholders'
Equity
           For the Three Months Ended March 31, 1998 and 1997. 4

          Consolidated Statements of Cash Flows
           For the Three Months Ended March 31, 1998 and 1997. 5

          Notes to Consolidated Financial Statements . . . . . 6

Item 2.   Management's Discussion and Analysis of Financial
          Condition
           and Results of Operations . . . . . . . . . . . . . 7


Part II - Other Information

Item 1.   Legal Proceedings. . . . . . . . . . . . . . . . . .13

Item 2.   Changes in Securities. . . . . . . . . . . . . . . .13

Item 3.   Defaults Upon Senior Securities. . . . . . . . . . .13

Item 4.   Submission of Matters to a Vote of Security Holders.13

Item 5.   Other Information. . . . . . . . . . . . . . . . . .13

Item 6.   Exhibits and Reports on Form 8-K . . . . . . . . . .13


Signatures . . . . . . . . . . . . . . . . . . . . . . . . . .14


page


Item. 1 - Consolidated Financial Statements

                The San Francisco Company and Subsidiaries
              Consolidated Statements of Financial Condition
                   March 31, 1998 and December 31, 1997
                                     
                                                (Unaudited)
                                                 March 31,      December 31,
(Dollars in Thousands Except Per Share Data)         1998              1997    

Assets:
Cash and due from banks                         $   2,699          $  2,837   
Federal funds sold                                 20,305            14,150
  Cash and cash equivalents                        23,004            16,987
Investment securities held-to-maturity
 (Market: 1998 $5,414; 1997 $6,567)                 5,458             5,864
Investment securities available-for-sale           29,920            32,669
Federal Home Loan Bank stock, at par                1,521             1,499

Loans                                              51,702            51,924
Deferred loan fees                                    (24)              (61)
Allowance for loan losses                          (3,116)           (3,200)
  Loans, net                                       48,562            48,663
Other real estate owned                               362               410
Premises and equipment, net                         7,792             7,791
Interest receivable                                   534               720
Other assets                                        1,941             2,014
  Total Assets                                   $119,094          $116,617

Liabilities and Shareholders' Equity:
Non-interest bearing deposits                    $ 19,714          $ 19,691
Interest bearing deposits                          69,327            66,828
  Total deposits                                   89,041            86,519
Other borrowings                                   10,000            10,000
Other liabilities and interest payable              2,189             2,528
  Total liabilities                               101,230            99,047

Shareholders' Equity:
Preferred stock (par value $0.01 per share)
  Series B - Authorized - 437,500 shares
  Issued and outstanding - 1998 and 1997-15,869       111               111
Common stock (par value $0.01 per share)
  Class A - Authorized - 100,000,000 shares
  Issued and outstanding-1998 and 1997-31,723,782     317               317
Additional paid-in capital                         78,814            78,814
Retained deficit                                  (61,354)          (61,656)
Accumulated other comprehensive loss                  (24)              (16)
  Total shareholders' equity                       17,864            17,570
  Total Liabilities and Shareholders' Equity     $119,094          $116,617

See accompanying notes to unaudited consolidated financial statements.

page 1

                The San Francisco Company and Subsidiaries
                   Consolidated Statements of Operations
                Three Months Ended March 31, 1998 and 1997
                                (Unaudited)
   
                                                             March 31,        
(Dollars in Thousands Except Per Share Data)             1998         1997   
Interest income:
  Loans                                               $ 1,211       $1,123
  Investments                                             826          746
  Dividends                                                23           12
  Total interest income                                 2,060        1,881
Interest expense:
  Deposits                                                653          697
  Other borrowing s                                       150           --
  Total interest expense                                  803          697

Net interest income                                     1,257        1,184
Provision (adjustment) for loan losses                    (94)          --
Net interest income after provision for loan losses     1,351        1,184

Non-interest income:
  Stock brokerage commissions and fees                    257          354
  Real estate rental income                               257          244
  Service charges and fees                                146           99
  Gain on sale of other assets                             --           22
  Other income                                             37           22
  Total non-interest income                               697          741

Non-interest expense:
  Salaries and related benefits                           973          908
  Occupancy expense                                       292          304
  Professional fees                                       126          100
  Data processing                                         111          115
  Corporate insurance premiums                             56           61
  Equipment expense                                        39           61
  Property taxes                                           --           40
  FDIC insurance premiums                                  10           39
  Other operating expenses                                139          154
  Total non-interest expense                            1,746        1,782
Income before income taxes                                302          143
Provision for income taxes                                 --            5
  Net Income                                          $   302      $   138

Income per common share:
  Basic:      Net income                               $ 0.01       $ 0.01
              Weighted average shares outstanding  31,723,782   28,775,995

  Diluted:    Net income                               $ 0.01        $0.01
              Weighted average shares outstanding  33,089,892   28,776,788

See accompanying notes to unaudited consolidated financial statements.

page 2

                The San Francisco Company and Subsidiaries
              Consolidated Statements of Comprehensive Income
                Three Months Ended March 31, 1998 and 1997
                                (Unaudited)
   
                                                              March 31,
(Dollars in Thousands Except Per Share Data)             1998         1997   

Net Income                                            $   302      $   138
  Other comprehensive income (loss), net of tax:
  Unrealized holding losses arising during period, net     (8)        (227)
  Other comprehensive income (loss)                        (8)        (227)
Comprehensive income (loss)                           $   294      $   (89)


See accompanying notes to unaudited consolidated financial statements.

page 3



                   The San Francisco Company and Subsidiaries
           Consolidated Statements of Changes in Shareholders' Equity
                   Three Months Ended March 31, 1998 and 1997
                                  (Unaudited)

                                                            Accu-
(Dollars in Thousands)                                      mulated           
                                                            Other     Total 
                             Additional Compre-  Retained   Compre-   Share- 
            Preferred Common  Paid-in   hensive  Earnings   hensive   holders'
                Stock  Stock   Capital  Income   (Deficit)   Income   Equity 


Balances at 
January 1, 1997  $111   $288   $77,841           $(67,099)    $(77)   $11,064
 Other comprehensive 
   income (loss), 
    net of tax 
 Unrealized losses 
on securities, net        --        --    (227)        --     (227)      (227)
 Other comprehensive 
      income       --     --        --    (227)        --       --         --
   Net income 
 (three months)    --     --        --     138        138       --        138
 Comprehensive loss                        (89)             
  
Balances at 
March 31, 1997    111    288    77,841            (66,961)    (304)    10,975

  Net proceeds 
from sale of stock --     29       971                 --       --      1,000
  Net proceeds 
from the exercise 
of stock options   --     --         2                 --       --          2
Other comprehensive 
 income, net of tax
  Unrealized gain 
on securities, net --     --        --     288         --      288        288   
 Other comprehensive 
    income                                 288                
    Net income 
   (nine months)   --     --        --   5,305      5,305       --      5,305
  Comprehensive income                   5,593
  
Balances at 
December 31,1997  111    317    78,814            (61,656)     (16)    17,570
Other comprehensive 
income, net of tax
 Unrealized loss 
on securities, net --     --        --      (8)        --       (8)        (8)
Other comprehensive 
    income                                  (8)    
  Net income 
(three months)     --     --        --     302        302       --        302
Comprehensive income                       294              
  
Balances at 
March 31, 1998   $111   $317   $77,814           $(61,354)    $(24)   $17,864


See accompanying notes to unaudited consolidated financial statements.

page 4


                 The San Francisco Company and Subsidiaries
                     Consolidated Statements of Cash Flows
                   Three Months Ended March 31, 1998 and 1997
                                  (Unaudited)


(Dollars in Thousands)                                      1998        1997

Cash Flows from Operating Activities:
Net income                                                 $ 302        $138
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Adjustment for loan losses                                 (94)         --
  Depreciation and amortization expense                      124         138
  Net gain on other real estate owned and 
       real estate investment                                 --         (22)
  Decrease in interest receivable and other assets           259         364
  (Decrease) increase in interest payable and 
         other liabilities                                  (339)        116
  (Decrease) increase in deferred loan fees                  (37)         68
Net cash flows provided by operating activities              215         802

Cash Flows from Investing Activities:
  Proceeds from maturities of investment 
    securities held-to-maturity                              406         221
  Proceeds from maturities of investment 
    securities available-for-sale                          8,024       1,604
  Purchase of investment securities available-for-sale    (5,305)         --
  Net decrease in loans                                      222       2,363
  Recoveries of loans previously charged off                  10         261
  Purchases of premises and equipment                       (125)        (76)
  Proceeds form the sale of other real estate owned           48       1,385
Net cash provided by investing activities                  3,280       5,758

Cash Flows from Financing Activities:
  Net increase in deposits                                 2,522       1,171
Net cash provided by financing activities                  2,522       1,171

Increase in cash and cash equivalents                      6,017       7,731
Cash and cash equivalents at beginning of period          16,987      15,626
Cash and cash equivalents at end of period              $ 23,004    $ 23,357


Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest                                                   $ 538       $ 724
Income taxes                                                  12           3

Supplemental Schedule of Noncash 
 Investing and Financing Activities:
Net transfer of loans to other real estate owned              --          --

See accompanying notes to unaudited consolidated financial statements.

page 5

                   The San Francisco Company and Subsidiaries
                   Notes to Consolidated Financial Statements
                                  (Unaudited)

Note 1 - Organization

     The San Francisco Company (the "Company") is a Delaware corporation and
a bank holding company registered under the Bank Holding Company Act of 1956. 
Bank of San Francisco (the "Bank"), a state chartered bank, was organized as
a California banking corporation in 1978 and became a wholly owned subsidiary
of the Company through a reorganization in 1982.

Note 2 - Principles of Consolidation and Presentation

     The accompanying unaudited consolidated financial statements of the
Company have been prepared in accordance with the instructions pursuant to
Form 10-Q Quarterly Report and Articles 9 and 10 of Regulation S-X, and
therefore, do not include all the information and footnotes necessary to
present the consolidated financial condition, results of operations and cash
flows of the Company in conformity with generally accepted accounting
principles.

     The data as of March 31, 1998, and for the three months ended March 31,
1998 and 1997 are unaudited, but in the opinion of management, reflect all
accruals and adjustments of a normally recurring nature necessary for fair
presentation of the Company's financial condition and results of operations. 
Certain amounts in the 1997 consolidated financial statements have been
reclassified for comparative purposes.  The results of operations for the
three months ended March 31, 1998 are not necessarily indicative of the
results to be expected for the entire year of 1998.  This report should be
read in conjunction with the Company's 1997 Annual Report on Form 10-K.

     The accompanying financial statements include the accounts of the
Company, the Bank, the Bank's wholly owned subsidiary, Bank of San Francisco
Realty Investors (the "BSFRI").  All material intercompany transactions have
been eliminated in consolidation.

Note 3 - Earnings Per Share (the "EPS")

     The Company adopted Statement of Financial Accounting Standards (the
"SFAS") no. 128, Earnings Per Share."  SFAS No. 128, dual presentation of
basic EPS and diluted EPS on the face of the income statement, and requires
disclosure of the calculation of basic EPS compared to diluted EPS in the
footnotes to the financial statements.  

     Basic EPS is calculated by dividing net income by the weighted average
number of Class A Common Shares (the "Common Stock").  The dilutive EPS is
calculated giving effect to all potentially dilutive Common Shares, such as
certain 

page 6


stock options, that were outstanding during the period.  The
following tables present a reconciliation of the amounts used in calculating
basic and diluted EPS for each of the periods shown.

     (dollars in thousands except per-share amounts)
                                                                Per-share
     1998                          Income         Shares           amount 
     Basic EPS                    $   302       31,723,782          $0.01
     Effect of dilutive securities:
          Series B Preferred Stock      2              793
          Stock Options                --        1,365,317    
     Diluted EPS                  $   304       33,089,892          $0.01     

                                                                Per-share
     1997                          Income         Shares           amount 
     Basic EPS                    $   138       28,775,995          $0.01
     Effect of dilutive securities:
          Series B Preferred Stock      2              793
          Stock Options                --               --     
     Diluted EPS                  $   140       28,776,788          $0.01     


Note 4 - Dividend Restrictions

     The Company is subject to dividend restrictions under the Delaware
General Corporation Law and regulations and policies of, and a Written
Agreement dated December 14, 1994 (the "Agreement") with, the Federal Reserve
Bank of San Francisco (the "FRB" ).  The Company's Series B Preferred Shares
participate equally, share for share, in cash dividends paid on the Common
Shares in addition to receiving the cash dividends to which they are
entitled.  Subject to regulatory approval, it is the present intention of the
Board of Directors to pay dividends in arrears on the Series B Preferred
Stock totaling $60,000 later this year, and thereafter to pay ongoing
dividends on the Series B Preferred Stock pursuant to their terms.  


Note 5 - Recent Accounting Pronouncements

     In June 1997, the Financial Accounting Standards Board (the "FASB")
issued Statement of Financial Accounting Standard (the "SFAS") Number 130,
"Reporting Comprehensive Income" which provides standards for reporting and
displaying comprehensive income and its components in the financial
statements.  This statement is effective with the year-end 1998 financial
statements including interim financial statements.  Reclassification of
financial statements for earlier periods is required.  The Company has
included comprehensive income in its financial statements as required by SFAS
No. 130.

     In June 1997, the FASB issued SFAS No. 131, "Disclosure about Segments
of an Enterprise and Related Information", which requires that a public
company report financial and descriptive information about its reportable
operating segments on the basis that is used internally for evaluating
segment performance and deciding how to allocate resources to segments.  This
statement is effective for year-end 1998 financial statements.  The Company
is in the process of determining its format for reporting segment
information.
     


Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations

     This document contains forward-looking statements that are subject to
risks and uncertainties, including, but not limited to, the Company's and

page 7


Bank's ability to implement their respective long-term business plan, the
economy in general and the condition of stock markets upon which the
Company's stock brokerage business and fee income is dependent, the continued
services of the Company's and Bank's key executives and managers, the real
estate market in California and other factors beyond the Company's and Bank's
control.  Such risks, uncertainties and factors, including those discussed
herein, could cause actual results to differ materially from those indicated. 
Readers should not place undue reliance on forward-looking statements, which
reflect management's views only as of the date hereof.  The Company and the
Bank undertake no obligation to revise these forward-looking statements to
reflect subsequent events or circumstances.  Readers are also encouraged to
review the Company's publicly available filings with the SEC.

Overview

     The Company is a one-bank holding company registered in Delaware under
the Bank Holding Company Act of 1956.  The principal activity of the Company
is to serve as the holding company for Bank of San Francisco, a California
chartered bank organized in 1978, with deposits insured by the Federal
Deposit Insurance Corporation's Bank Insurance Fund.  The information set
forth in this report, including unaudited interim financial statements and
related data, relates primarily to the Bank.

     The Company's Common Stock is not listed on any exchange.  Van Kasper &
Company of San Francisco California is the sole market maker in the Company's
Common Stock.  On May 1, 1998 Van Kasper & Company quoted a bid price of
$0.60.   

     The Company recorded net income of $302,000 for the three months ended
March 31, 1998, compared to a net income of $138,000 for the same period in
1997.  The increase in the Company's net income of $164,000 was primarily
from an increase in net interest income and reductions in non-interest
expenses partially offset by lower brokerage fees in first quarter 1998
compared to the same period in 1997.

     At March 31, 1998, total assets were $119.1 million, an increase of $2.5
million, or 2.1% from $116.6 million at December 31, 1997.  As of March 31,
1998, total loans were $51.7 million compared to $51.9 million at December
31, 1997.  Total deposits were $89.0 million at March 31, 1998, an increase
of $2.5 million, or 2.9%, compared to $86.5 million at December 31, 1997.  
     

Regulatory Directives

     Federal Reserve Board Written Agreement

     The Agreement prohibits the Company, without prior approval of the FRB,
from: (a)  paying any cash dividends to its shareholders; (b) directly or
indirectly, acquiring or selling any interest in any entity, line of
business, problem or other assets; (c) executing any new employment, service,
or severance contracts, or renewing or modifying any existing contracts with
any executive officer; (d) engaging in any transactions with the Bank that
exceed an aggregate of $20,000 per month; (e) engaging in any cash
expenditures with any individual or entity that exceed $25,000 per month; (f)
increasing fees paid to any directors for attendance at board or committee
meetings, or paying any bonuses to any executive officers; (g) incurring any
new debt or increasing existing debt; and (h) repurchasing any outstanding
stock of the Company. The Company is required to submit a progress report to
the FRB on a quarterly basis.

     The Company was also required to submit to the FRB an acceptable written
plan to improve and maintain an adequate capital position, a comprehensive
business plan concerning current and proposed business activities, and a
comprehensive operating budget for the Bank and the consolidated Company.  In
addition, the Board of Directors was required to submit an acceptable written
plan designed to enhance their supervision of the operations and management
of the consolidated organization.

     Management was notified by the FRB at its 1997 examination that the
Company was in full compliance with the Agreement, and management believes
the Company continues to be in full compliance.      


page 8

     Memorandum of Understanding

     On May 27, 1997, the Federal Deposit Insurance Corporation (the "FDIC")
and the Department of Financial Institutions (the "DFI") terminated the
Bank's Cease and Desist Orders and in lieu thereof entered into a Memorandum
of Understanding (the "MOU") with the Bank.  The MOU provides, among other
things,that the Bank: (a) have and retain management acceptable to the
Regional Director of the FDIC (the "Regional Director") and the Commissioner
of the DFI (the "Commissioner"); (b) increase its capital by not less than
$1.0 million by June 30, 1997, (c) maintain a 7% Leverage Capital ratio;
(d) reduce assets classified "Substandard" as of September 30, 1996 to no
more than $12.0 million as of June 30, 1997, $10.0 million as of September
30, 1997, and $8.0 million as of December 31, 1997; (e)  develop and
implement written policy recommendations outlined in the Report of
Examination; (f) implement a police which establishes a range for the Bank's
volatile liability dependency ratio, and which ratio shall not be more than
15%; (g) submit a strategic plan covering the period 1997 - 2002; (h) no pay
cash dividends without prior written consent from the Regional Director and
the Commissioner; and (i) report to the Regional Director and the
Commissioner on a quarterly basis the form and manner of any actions taken to
secure compliance with the MOU.

     As of March 31, 1998, the Bank has filed all of the required submissions
with the FDIC and DFI in accordance with the MOU, and management believes
that the Bank is full compliance with the requirements of the MOU.  


Results of Operations

Net Interest Income

     The Company's net interest income was $1.3 million in the quarter ended
March 31, 1998 compared to $1.2 million for the same period in 1997, or an
increase of 6%.  The increase was primarily the result of an increase in
earning assets.   

Provision (Adjustment) for Loan Losses

     The Company recorded an adjustment for loan losses of $94,000 for the
first quarter of 1998 compared to none in the same period in 1997.  The
adjustment for loan losses reflects the amount necessary to reduce the
allowance for loan losses to a level that management believes is adequate
based on many factors that are more fully discussed under "Loans - Allowance
for Loan Losses". 

Non-Interest Income

     Non-interest income was $697,000 at March 31, 1998 compared to $741,000
at March 31, 1997.  The decline in non-interest income of $44,000 was
primarily the result of the reduction in stock option and brokerage
commission income in 1998 compared to 1997.  

Non-Interest Expense

     The Company's non-interest expenses declined slightly to $1.7 million
from $1.8 million for the three month period ended March 31, 1998 and 1997,
respectively.  

page 9


Financial Condition

Liquidity and Capital Resources

     Liquidity

     The Bank's liquid assets, which include cash and short term investments
totaled $23.0 million, or 19.3% of total assets, at March 31, 1998, an
increase of $6.0 million, from $17.0 million, or 14.6% of total assets, at
December 31, 1997.  The increase in liquidity was the result of an increase
in core deposits of $2.5 million and a decrease in investment securities
totaling $3.1 million.  

     As of March 31, 1998, the Bank had pledged securities totaling $11.5
million pledged to the Federal Home Loan Bank of San Francisco (the "FHLB")
as collateral for other borrowings.  As of March 31, 1998, the Bank has the
ability to borrow up to 20% of total assets or $23.8 million from the FHLB
upon the pledge of sufficient collateral.In the future, long and short term
borrowings from the FHLB may be used as an on-going source of liquidity and
funding.  As of March 31, 1998, the Bank had other securities totaling $1.6
million pledged as collateral for public funds, trust, and a letter of credit
facility with another Bank.  

     The Bank has access to the discount window at the FRB for a total
borrowing facility of $1.7 million upon the pledge of securities.  At March
31, 1998 and December 31, 1997, no securities were pledged as collateral for
the FRB facility.

     Capital

     At March 31, 1998, shareholders' equity was $17.9 million compared to
$17.6 million at December 31, 1997.  
     The Company and the Bank are subject to general regulations issued by
the FRB, FDIC, and DFI which require maintenance of a certain level of
capital, and the Bank is under specific capital requirements as a result of
the MOU.  As of March 31, 1998, the Company and the Bank are in compliance
with the all minimum capital ratio requirements including the minimum
Leverage ratio of 7% mandated by the MOU. 

     The following table reflects both the Company's and the Bank's capital
ratios with respect to minimum capital requirements in effect as of March 31,
1998:

                                                          Minimum
                                                          Capital
                                  Company   Bank       Requirement    MOU  
 
Leverage ratio                      14.0%   13.8%             4.0%    7.0%
Tier 1 risk-based capital           20.7    20.5              4.0     N/A
Total risk-based capital            22.6    22.4              8.0     N/A


Investment Activities

     At March 31, 1998, the Company's investment securities, including Fed
funds sold, totaled $54.4 million, or 48.0% of total assets, compared to
$54.2 million, or 46.5% of total assets, at December 31, 1997.  The decrease
in investment securities resulted primarily from principal amortization on
mortgage related securities and the maturity and call of certain agency
securities.  The Company's investment portfolio may from time to time include
treasury and agency securities, fixed and adjustable rate mortgage backed
securities, and to a limited extent collateralized mortgage backed
securities.  Generally, the Bank's investment securities held-to-maturity and
available-for-sale have maturities or principal amortization of five years or
less.


page 10

     At March 31, 1998, investment securities held-to-maturity totaled $5.5
million, compared to $5.9 million at December 31, 1997, and are carried at
amortized cost.  At March 31, 1998, the Company held $29.9 million in
securities available-for-sale, compared to $32.7 million at December 31,
1997.  Investment securities available-for-sale are accounted for at fair
value.  Unrealized gains and losses are recorded as an adjustment to equity
and are not reflected in the current earnings of the Company.  As of March
31, 1998, the investment securities available-for-sale have an unrealized
loss of $24,000 that was included as a separate component of shareholder's
equity to reflect the current market value of these securities.    


Loans

     During the first quarter of 1998, total loans decreased slightly, from
$51.9 million at December 31, 1997 to $51.7 million at March 31, 1998.  The
reduction resulted primarily from lower outstanding unsecured loans.  The
composition of the Bank's loan portfolio at March 31, 1998 and December 31,
1997 is summarized as follows:

                                            March 31,  December 31,
(Dollars in Thousands)                          1998          1997    

Real estate mortgage                        $ 38,399      $ 37,826
Secured commercial and financial               5,536         4,912
Unsecured                                      7,130         8,633
Other                                            637           553
                                              51,702        51,924
Deferred fees and discounts, net                 (24)          (61)
Allowance for possible loan losses            (3,116)       (3,200)
  Total loans, net                          $ 48,562      $ 48,663

 
     Classified Assets and Impaired Loans

     Classified assets include non-accrual loans, other real estate owned
(the "OREO"), and performing loans that exhibit credit quality weaknesses. 
The table below outlines the Bank's classified assets at March 31, 1998 and
December 31, 1997:

                                            March 31,  December 31,
(Dollars in Thousands)                          1998          1997    

Loans - performing                           $ 4,672       $ 1,393
Non-accrual loans                                 --           171
OREO                                             362           410
  Total classified assets                    $ 5,034       $ 1,974

     On March 31, 1998, the Bank had one loan totaling $101,000 secured by
cash collateral and in the process of collection that was 90 days past due
and still accruing, and there were no loans past due between 31 and 89 days. 
Classified assets increased by 155% to $5.0 million as of March 31, 1998
compared to $2.0 million at December 31, 1997.  The net increase was the
result of the downgrade of one loan.  The loan that was downgraded was
originated in 1992 as a loan to facilitate the sale of OREO and the borrower
has performed and continues to perform in accordance with the terms of the 
loan.  As of March 31, 1998 and December 31, 1997, all OREO properties were 
classified.  

     The Company identifies loans with weak credit quality characteristics
for review in accordance with SFAS No. 114 "Accounting by Creditors for
Impairment of a Loan" as amended by SFAS No. 118 "Accounting by Creditors for
Impairment of a Loan-Income Recognition and Disclosures" (the "SFAS No.114").  

page 11

As of March 31, 1998 and December 31, 1997, the Company had impaired
loans totaling zero and $171,000, respectively.  The impairment was measured
using the collateral value method.  Total interest income recognized on
impaired loans during the first quarter of 1998 and 1997 was $4,000 and
$31,000. 

     There can be no assurance that the Bank will not experience increases in
the amount of classified assets or not experience losses in attempting to
collect or otherwise liquidate the non-performing assets which are presently
reflected on the Company's statement of financial condition.

     
     Allowance for Loan Losses

     Generally, the Bank charges current earnings with a provision for
estimated losses on loans receivable.  The Bank will provide an adjustment if
the total allowance for loan losses exceeds the amount of estimated loan
losses.  The provisions or adjustments take into consideration specifically
identified problem loans, the financial condition of the borrowers, the fair
value of the collateral, recourse to guarantors and other factors.

     Specific loss allowances are established based on the asset
classification and credit quality.  Specific loss allowances are utilized to
ensure that the allowance is allocated based on the credit quality including
the present value of expected cash flows, the terms and structure of the
loan, the financial condition of the borrower, and the fair value of
underlying collateral.  As of March 31, 1998, none of the allowance for loan
losses was allocable to impaired loans, as identified in accordance with SFAS
No. 114.  In addition, the Bank carries an "unallocated" loan loss allowance
to provide for losses that may occur in the future in loans that are or are
not presently classified, based on present economic conditions, trends, and
related uncertainties.  The following table summarizes the loan loss
experience of the Bank for the quarter ended March 31, 1998:

                                                                    March 31, 
(Dollars in Thousands)                                                 1998   

Beginning balance of allowance for loan losses at December 31, 1997  $ 3,200
  Charge-offs                                                             --
  Recoveries                                                              10
  Provision (adjustment)                                                 (94)
Ending balance of allowance for loan losses                          $ 3,116

     For the quarter ended March 31, 1998, the unallocated portion of the
allowance for loan loss totaled $1.5 million compared to $1.4 million at
December 31, 1997. 

page 12


Deposits

     The Bank had total deposits of $89.0 million at March 31, 1998 compared
to $86.5 million at December 31, 1997, an increase of $2.5 million or 2.9%. 
The increase was attributed to escrow related customer's deposits of $6.9
million partially offset by a decrease in Stock Option lending related
deposits of approximately $3.1 million and volatile deposits of $900,000.  A
summary of deposits at March 31, 1998 and December 31, 1997 is as follows:

                                            March 31,  December 31,
(Dollars in Thousands)                          1998          1997    

Demand deposits                            $  19,714     $  19,691
NOW                                           15,729        15,986
Money market and savings                      18,932        16,040
  Total deposits with no stated maturity      54,375        51,717
Time deposits:
  Less than $100,000                          19,650        19,184
  $100,000 and greater                        15,016        15,618
  Total time deposits                         34,666        34,802

  Total deposits                            $ 89,041      $ 86,519

     The Bank's deposits from private and business banking customers totaled
$34.4 million, or 38.6% of total deposits, at March 31, 1998, compared to
$34.7 million, or 40.1% of total deposits, at December 31, 1997.  Deposits
from Association Bank Services customers totaled $17.1 million, or 19.2% of
total deposits at March 31, 1998, compared to $17.2 million, or 19.9% of
total deposits at December 31, 1997.  Deposits acquired through the money
desk operations totaled $10.8 million, or 12.1% of total deposits at March
31, 1998, compared to $11.7 million, or 13.5% of total deposits at December
31, 1997.  The Bank expects to decrease money desk deposits during the
remainder of the year with the intention of replacing these deposits with
core deposits.
 
     Concentrations of deposits acquired through the money desk operations
have been classified by bank regulators as volatile liabilities associated
with certain risks, including the risks of reduced liquidity if a bank is
unable to retain such deposits and reduced margins if its interest costs are
increased by a bank in order to retain such deposits.  As a result of the
MOU, the Bank is required to maintain a volatile liability dependency ratio
of not more than 15%.  The Bank's volatile dependency ratio at March 31, 1998
was below the 15.0% requirement.  


Other Borrowings

     As of March 31, 1998, the Bank had long-term FHLB borrowings outstanding
totaling $10.0 million secured by pledged securities totaling $11.5 million. 
In the future, long and short term borrowings from the FHLB may be used as an
on-going source of liquidity and funding.


PART II - OTHER INFORMATION

Item 1 - Legal Proceedings

     Because of the nature of its business, the Company and its subsidiaries,
including the Bank, are from time-to-time, a party to legal actions.  Based
on information available to the Company and the Bank, and its review of such
outstanding claims to date, management believes the liability relating to
such claims, if any, will not have a material adverse effect on the Company's
liquidity, consolidated financial condition or results of operations.


page 13

Item 2 - Changes in Securities

     None 
     

Item 3 - Defaults Upon Senior Securities

     None 


Item 4 - Submission of Matters to a Vote of Security Holders

     None


Item 5 - Other Information

     None

Item 6 - Exhibits and Reports on Form 8-K

     (a)  Exhibits

          Indemnification Agreements dated March 18, 1998 between each
          director and executive officer of the Company and the Bank.

     (b)  Report on Form 8-K

          None


page 14

                                   SIGNATURES


     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.



                           The San Francisco Company
                                  (Registrant)



Date:  May 8, 1998                                /s/ James E. Gilleran
                                                  James E. Gilleran
                                                  Chairman of the Board and
                                                  Chief Executive Officer



Date:  May 8, 1998                                /s/ Keary L. Colwell 
                                                  Keary L. Colwell
                                                  Chief Financial Officer and
                                                  Executive Vice President


page 15
       
                        
                            INDEMNIFICATION AGREEMENT
 
          This Indemnification Agreement ("Agreement") is made as of March
18, 1998, between The San Francisco Company, a Delaware corporation (the
"Corporation"), and ________________, an individual (the "Director").

RECITALS

          A.   The Director is a member of the Corporation's Board of
Directors and the Corporation desires that the Director continue to serve
in such capacity.  The Director is willing to continue to serve on the
Corporation's Board of Directors if the Director receives the protection
provided by this Agreement.

          B.   The Corporation maintains directors and officers liability
insurance ("D&O Insurance") and intends to continue to maintain such D&O
Insurance in accordance with the provisions of this Agreement.

          C.   The Corporation believes that (1) it is increasingly
difficult to attract and keep qualified directors because of potential
liabilities; (2) it is important for a director to have assurance that
indemnification will be available to the fullest extent permitted by law;
and (3) it is in the best interests of the Corporation and its shareholders
for the Corporation to contractually obligate itself to indemnify the
Director and to set forth the details of the indemnification process.

          Therefore, in consideration of the premises and the mutual
promises herein contained, the Corporation and the Director agree as
follows:

          1.   Agreement to Serve.  The Director will continue to serve as
a member of the Board of Directors of the Corporation so long as the
Director is duly elected and qualified to so serve or until the Director
resigns or is removed from the Corporation's Board of Directors.

          2.   Indemnification.

               (a)  The Corporation shall indemnify and hold harmless the
Director to the fullest extent permitted under applicable law (including
without limitation Section 28(k) of the Federal Deposit Insurance Act and
Part 359 of the Rules and regulations of the Federal Deposit Insurance
Commission (the "FDIC Rules")) if the Director was or is a party or
threatened to be made a party to any threatened, pending or completed
action, suit, arbitration (or other alternative dispute resolution
mechanism), or proceeding of any kind, wherever brought, whether civil,
criminal, administrative or investigative and whether formal or informal
(including actions by or in the right of the Corporation and any
preliminary inquiry or claim by any person or authority), by reason of or
associated with the fact that the Director is or was a director, officer,
partner, trustee, employee, consultant or agent of the Corporation or is or
was serving at the Corporation's request, or for the convenience of or

page 1

otherwise to benefit or represent the interests of the Corporation or a
subsidiary of the Corporation, as a director, officer, employee or agent of
another corporation, limited liability company, partnership, joint venture,
trust, employee benefit plan or other enterprise (collectively, an
"Affiliate"), whether or not for profit, or by reason of anything done or
not done by the Director in any such capacity (collectively, "Covered
Matters").  Such indemnification will cover all Expenses (as defined
below), liabilities, judgments (including punitive and exemplary damages),
penalties, fines (including excise taxes relating to employee benefit plans
and civil penalties) and amounts paid or to be paid in settlement which are
incurred by or imposed upon the Director in connection with a Covered
Matter, including all interest assessments on any of the foregoing
(collectively, "Indemnified Amounts").  "Expenses" means all direct or
indirect costs and expenses (including, without limitation, attorneys'
fees, retainers, transcripts, witness fees, expert fees, other professional
fees, court costs and travel costs) incurred by the Director in connection
with a Covered Matter, together with interest thereon commencing 30 days
after incurrence, other than liabilities, judgments, penalties, fines and
settlement amounts.

               (b)  The Director will be so indemnified for all Indemnified
Amounts and the Corporation will defend the Director against claims
(including threatened claims and investigations) which are covered matters,
including claims brought by or on behalf of the Corporation or any
Affiliate, except if it is finally determined by the court of last resort
(or by a lower court if not timely appealed) that the payment is prohibited
by applicable law. 

               (c)  If the Director is entitled under this Agreement to
indemnification for less than all of the amounts incurred by the Director
in connection with a Covered Matter, the Corporation will indemnify the
Director for the indemnifiable amount.

          3.   Claims for Indemnification.  The Director will give the
Corporation written notice of any claim for indemnification under this
Agreement, but failure to do so shall not affect the Director's rights
hereunder.  Payment requests will include a schedule setting forth in
reasonable detail the amount requested and will be accompanied (or, if
necessary, followed) by copies of the relevant invoices or other
documentation.  The Corporation will pay Indemnified Amounts directly
without requiring the Director to make any prior payment.

          4.   Determination of Right to Indemnification.

               (a)  The Director will be presumed to be entitled to
indemnification under this Agreement and will receive such indemnification,
subject to paragraph 4(b) below, irrespective of whether the Covered Matter
involves allegations of gross negligence or intentional misconduct, alleged
violations of Section 10(b) of the Securities Exchange Act of 1934
(including Rule 10b-5 thereunder), alleged breach of the Director's
fiduciary duties (including duties of loyalty or care) or any other claim.

               (b)  The Director shall be conclusively presumed to have met
any required standard of conduct established by applicable law, unless a
determination is made in the written opinion of independent counsel to the
Corporation, applicable law (including the FDIC Rules) permits

page 2

indemnification in a Covered Matter only as authorized in the specific case
upon a determination that indemnification is proper in the circumstances
because the Director has met the required standard of conduct.  In such
event:

                    (1)  The Corporation will immediately give the Director
notice, with a copy of counsel's opinion, that an evaluation and
determination will be made under this paragraph 4(b).

                    (2)  Such evaluation and determination will be made, as
promptly as possible and in good faith, by a majority vote of the members
of the Corporation's Board of Directors who are not parties or threatened
to be made parties to the Covered Matter in question or, if so requested by
the Director, in a written opinion by independent counsel to the
Corporation (who shall not be the same as the counsel referred to above),
or by such other procedure as the Corporation and the Director agree.
     
                    (3)  The Director will be entitled to present
information, and to be represented by counsel, in connection with such
evaluation and determination.

                    (4)  The Director will be presumed to have met the
required standard of conduct unless it is conclusively demonstrated to the
determining firm or body that the Director has not met the required
standard of conduct.  If the Director is successful (which includes a
settlement without admission of liability) on the merits or otherwise or in
the defense of any claim, issue or matter therein, he shall be conclusively
presumed to have met the required standard of conduct.

                    (5)  The cost of any evaluation and determination under
this paragraph 4(b) (including attorneys' fees and other expenses incurred
by the Director) will be borne by the Corporation.

                    (6)  If the requested indemnification falls within the
scope of the FDIC Rules, the FDIC Rules will also be observed.

                    (7)  The termination of any proceeding by judgment,
order, settlement, arbitration award or conviction, or upon a plea of nolo
contendere or its equivalent shall not affect this presumption or, except
as determined by a judgment or other final adjudication adverse to the
Director, establish a presumption with regard to any factual matter
relevant to determining the Director's rights to indemnification hereunder. 


               (c)  Determination of the Director's entitlement to
indemnification shall be made not later than thirty (30) days after the
Corporation's receipt of his written request for such indemnification.  If

page 3

the person or persons so empowered to make a determination pursuant to
paragraph 4 hereof shall have failed to make the requested determination
within thirty (30) days after any judgment, order, settlement, dismissal,
arbitration award, conviction, acceptance of a plea of nolo contendere or
its equivalent, or other disposition or partial disposition of any
proceeding or any other event which could enable the Corporation to
determine the Director's entitlement to indemnification, the requisite
determination that the Director is entitled to indemnification shall be
deemed to have been made.

          5.   Advance of Expenses.

               (a)  Subject to paragraphs 5(b) and (c), and notwithstanding
Section 4(b), before final adjudication of a Covered Matter, upon the
Director's request pursuant to paragraph 3 above, the Corporation will
promptly advance Expenses directly; provided, however, if the Director has
already paid any Expenses, the Corporation will promptly reimburse the
Director for all such Expenses.  

               (b)  If, in the opinion of counsel to the Corporation, the
FDIC Rules permit advancement of Expenses with respect to a federal banking
agency proceeding or action only as authorized upon a determination that
the Director has met a standard of conduct established by the FDIC Rules,
the determination will be made in accordance with paragraph 4(b) above to
the extent not inconsistent with FDIC Rules. 

               (c)  The Director will repay any Expenses that are advanced
under this paragraph 5 if so required by the FDIC Rules or if it is
ultimately determined, in a final, nonappealable judgment rendered by the
court of last resort (or by a lower court if not timely appealed), that the
Director is not entitled to be indemnified against such Expenses and
requires repayment.

               (d)  The Corporation shall use its best efforts to provide
the Director on or before the time of any Change of Control security and
liquidity for the obligations of the Corporation to indemnify and advance
Expenses to the Director pursuant to this Agreement (whether by letter of
credit, the posting of assets as security, or other means). 

          6.   Defense of Claim.

               (a)  The Corporation, jointly with any other indemnifying
party, will be entitled to assume the defense of any Covered Matter as to
which the Director requests indemnification, provided, however, the
Corporation shall not be entitled to assume the defense if there has been a
Change of Control or the Director is entitled to employ the Director's own
counsel under paragraph 6(c) below, in which case both parties shall be
entitled to participate in the defense.

               (b)  Counsel selected by the Corporation to defend any
Covered Matter will be subject to the Director's advance written approval.

page 4

               (c)  The Director may employ the Director's own counsel in a
Covered Matter and will be fully reimbursed therefor if (1) the Corporation
approves, in writing, the employment of such counsel or (2) either (A) the
Director has reasonably concluded that there may be a conflict of interest
between the Corporation and the Director or between the Director and other
parties represented by counsel employed by the Corporation to represent the
Director in such action or (B) the Corporation has not employed counsel
reasonably satisfactory to the Director to assume the defense of such
Covered Matter promptly after the Director's request.

               (d)  Neither the Corporation nor the Director will settle
any Covered Matter without the other's written consent, which will not be
unreasonably withheld.

               (e)  If the Director is required to testify (in court
proceedings, depositions, informal interviews or otherwise), consult with
counsel, furnish documents or take any other reasonable action in
connection with a Covered Matter, the Corporation will reimburse the
Director's reasonable expenses in connection therewith and also pay the
Director reasonable compensation for time spent by the Director for which
the Director is otherwise not compensated by the Corporation.

          7.   Disputes; Enforcement.

               (a)  If there is a dispute relating to the validity or
enforceability of this Agreement or a denial of indemnification, advance of
Expenses or payment of any other amounts due under this Agreement or the
Corporation's Certificate of Incorporation or Bylaws, the Corporation will
provide such indemnification, advance of Expenses or other payment until a
final, nonappealable judgment that the Director is not entitled to such
indemnification, advance of Expenses or other payment has been rendered by
the court of last resort (or by a lower court if not timely appealed). The
Director will repay such amounts if such final, nonappealable judgment so
requires.

               (b)  In the event that (i) a determination pursuant to
Section 4(b) hereof is made that the Director is not entitled to
indemnification, (ii) advances of Expenses are not made pursuant to this
Agreement, (iii) payment has not been timely made following a determination
of entitlement to indemnification pursuant to this Agreement, or (iv) the
Director otherwise seeks enforcement of this Agreement, the Director shall
be entitled to a final adjudication in the Court of Chancery of the State
of Delaware of the remedy sought.  Alternatively, unless court approval is
required by law for the indemnification sought by the Director, the
Director at his option may seek an award in arbitration to be conducted by
a single arbitrator pursuant to the commercial arbitration rules of the
American Arbitration Association now in effect, which award is to be made
within ninety (90) days following the filing of the demand for arbitration. 
The Corporation shall not oppose the Director's right to seek any such
adjudication or arbitration award.  In any such proceeding or arbitration
the Director shall be presumed to be entitled to indemnification and
advancement of Expenses under this Agreement and the Corporation shall have
the burden of proof to overcome that presumption.  In the event that a

page 5

determination that Director is not entitled to indemnification, in whole or
in part, has been made pursuant to Section 4(b) hereof, the decision in the
judicial proceeding or arbitration provided in this Section 7 shall be made
de novo and the Director shall not be prejudiced by reason of a
determination that he is not entitled to indemnification.  If a
determination that the Director is entitled to indemnification has been
made pursuant to Section 4(b) hereof, or is deemed to have been made
pursuant to Section 4 hereof or otherwise pursuant to the terms of this
Agreement, the Corporation shall be bound by such determination in the
absence of a misrepresentation of a material fact by the Director in
connection with such determination.  The Corporation shall be precluded
from asserting that the procedures and presumptions of this Agreement are
not valid, binding and enforceable.  The Corporation shall stipulate in any
such court or arbitration that the Corporation is bound by all the
provisions of this Agreement and is precluded from making any assertion to
the contrary.

               (c)  The Corporation will reimburse all of the Director's
reasonable expenses (including attorneys' fees) in pursuing an action to
enforce the Director's rights under this Agreement unless a final,
nonappealable judgment against the Director has been rendered in such
action by the court of last resort (or by a lower court if not timely
appealed) or unless the FDIC Rules otherwise require to the same effect as
set forth in Section 5(c).  At the Director's request, such expenses will
be advanced by the Corporation to the Director as incurred before final
resolution of such action by the court of last resort; such expenses will
be repaid by the Director if a final, nonappealable judgment in the
Corporation's favor is rendered in such action by the court of last resort
(or by a lower court if not timely appealed) to the same effect as set
forth in Section 5(c).

          8.   Insurance.

               (a)  The Corporation hereby covenants and agrees that, as
long as the Director continues to serve as a director of the Corporation
and thereafter as long as the Director may be subject to any possible
Covered Matter, the Corporation, subject to paragraph 8(c) below, shall
maintain in full force and effect D&O Insurance from established and
reputable insurers in amounts not less than, and with coverage comparable
to, those in effect as of the date of this Agreement.

               (b)  In all D&O Insurance policies, the Director shall be
named as an insured in such a manner as to provide the Director the same
rights and benefits as are accorded the most favorably insured of the
Company's directors.

               (c)  The Corporation will not be required to maintain D&O
Insurance if the Board of Directors of the Corporation determines, after
diligent inquiry, that (1) such insurance is not available; (2) the
premiums for available insurance are disproportionate to the amount of
coverage and to the premiums paid by other corporations similarly situated;
or (3) the coverage provided by such insurance is so limited by exclusions
that it provides an insufficient benefit.  The Board of Directors of the
Corporation will, from time to time, in good faith review any decision not
to maintain D&O Insurance and will purchase such insurance at any time that
the conditions of this paragraph 8(c) cease to apply.

page 6

               (d)  The parties will cooperate to obtain advances of
Expenses, indemnification payments and consents from D&O Insurance carriers
in any Covered Matter to the full extent of applicable D&O Insurance.  The
existence of D&O Insurance coverage will not diminish or limit the
Corporation's obligation to make indemnification payments to the Director. 
Amounts paid directly to the Director with respect to a Covered Matter by
the Corporation's D&O Insurance carriers will be credited to the amounts
payable by the Corporation to the Director under this Agreement.

               (e)  Payments under any D&O Insurance policies shall be
subject to the FDIC Rules.

          9.   Limitations of Actions; Limitation of Indemnity.

               (a)  No action will be brought by or on behalf of the
Corporation against the Director or the Director's heirs or personal
representatives relating to the Director's service as a director, after the
expiration of one year from the date the Director ceases (for any reason)
to serve as a director of the Corporation, and any claim or cause of action
of the Corporation will be extinguished and deemed released unless asserted
by the filing of a legal action before the expiration of such period.

               (b)  Notwithstanding the provisions hereof, the Corporation
shall not be obligated pursuant to the terms of this Agreement:

                    (1)  Claims Initiated by the Director.  To indemnify or
advance expenses to the Director with respect to proceedings or claims
initiated or brought voluntarily by the Director and not by way of defense,
except with respect to proceedings brought to establish or enforce a right
to indemnification under this Agreement or any other statute or law or
otherwise as required under Section 145 of the Delaware General Corporation
Law, but such indemnification or advancement of expenses may be provided by
the Corporation in specific cases if the Board of Directors has approved
the initiation or bringing of such suit;

                    (2)  Lack of Good Faith.  To indemnify the Director for
any expenses incurred by the Director with respect to any proceeding
instituted by the Director to enforce or interpret this Agreement, if a
court of competent jurisdiction determines that each of the material
assertions made by the Director in such proceeding was not made in good
faith or was frivolous;

                    (3)  Insured Claims.  To indemnify the Director for
expenses or liabilities of any type whatsoever (including, but not limited
to, judgments, fines, ERISA excise taxes or penalties and amounts paid in
settlement) which have been paid directly to the Director by an insurance
carrier under D&O Insurance maintained by the Corporation; or

page 7

                    (4)  FDIC Rules.  To make any indemnification payment
contrary to the FDIC Rules.

                    (5)  Short Swing Profits.  To indemnify the Director
for expenses or liabilities incurred by the Director under Section 16 of
the Securities and Exchange Act of 1934.

          10.  Rights Not Exclusive; Benefit of Amendments to Law.  The
indemnification provided to the Director under this Agreement will be in
addition to any indemnification provided to the Director by any law,
agreement, Board resolution, provision of the Certificate of Incorporation
or Bylaws of the Corporation or otherwise (including, but not limited to,
under that certain Indemnification Agreement (the "Bank Agreement") made as
of March 18, 1998, between The Bank of San Francisco, a California
corporation (the "Bank") and the Director).  If applicable laws, rules or
regulations are amended after the date of this Agreement to permit
indemnification of a type or to an extent beyond or greater than that
provided by this Agreement, the Director shall be entitled to
indemnification hereunder of such further types or to such further extent
as is then permitted; provided, however, that no such amendment shall in
any way restrict or limit the rights of the Director hereunder and the term
"applicable law" shall refer only to the same as amended to the extent such
amendment permits the Corporation to provide such greater indemnification. 
The Corporation and the Director agree that the Director may pursue his
remedies under both this Agreement and the Bank Agreement, under only this
Agreement, or under only the Bank Agreement, and that the manner in which
the Director chooses to pursue (or not to pursue) his remedies under this
Agreement and/or under the Bank Agreement shall not in any way restrict or
limit the rights of the Director under this Agreement.

          11.  Change in Control.  "Change in Control" shall mean the
occurrence of any of the following after January 1, 1998: 

               (a)  Both (1) any "person" (as defined below) is or becomes
the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Corporation representing at
least 15% of the total voting power represented by the Corporation's then
outstanding voting securities; and (2) the beneficial ownership by such
person of securities representing such percentage has not been approved by
a majority of the "continuing directors" (as defined below); or

               (b)  Any "person" (as defined below) is or becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Corporation representing at
least 50% of the total voting power represented by the Corporation's then
outstanding voting securities; or

               (c)  A change in the composition of the Board occurs, as a
result of which fewer than two-thirds of the incumbent directors are
directors who either (1) had been directors of the Corporation on January
1, 1998 (the "Original Directors") or (2) were elected, or nominated for
election, to the Board with the affirmative votes of at least a majority in
the aggregate of the Original Directors who were still in office at the
time of the election or nomination and directors whose election or
nomination was previously so approved (the "continuing directors"); or

page 8

               (d)  The stockholders of the Corporation approve a merger or
consolidation of the Corporation with any other corporation, if such merger
or consolidation would result in the voting securities of the Corporation
outstanding immediately prior thereto representing (either by remaining
outstanding or by being converted into voting securities of the surviving
entity) 50% or less of the total voting power represented by the voting
securities of the Corporation or such surviving entity outstanding
immediately after such merger or consolidation; or

               (e)  The stockholders of the Corporation approve (1) a plan
of complete liquidation of the Corporation or (2) an agreement for the sale
or disposition by the Corporation of all or substantially all of the
Corporation's assets.

     For purposes of Subsection (a) above, the term "person" shall have the
same meaning as when used in sections 13(d) and 14(d) of the Exchange Act,
but shall exclude (x) a trustee or other fiduciary holding securities under
an employee benefit plan of the Corporation or of a parent or subsidiary of
the Corporation or (y) a corporation owned directly or indirectly by the
stockholders of the Corporation in substantially the same proportions as
their ownership of the common stock of the Corporation.

     Any other provisions of this Section 11 notwithstanding, the term
"Change in Control" shall not include (1) a transaction, if undertaken at
the election of the Corporation, the result of which is to sell all or
substantially all of the assets of the Corporation to another corporation
(the "surviving corporation"); provided that the surviving corporation is
owned directly or indirectly by the stockholders of the Corporation
immediately following such transaction in substantially the same
proportions as their ownership of the Corporation's common stock
immediately preceding such transaction; and provided, further that the
surviving corporation expressly assumes this Agreement; or (2) an
acquisition of voting and other rights on outstanding shares by a voting
trustee who is approved (and the agreement under which he acts is approved)
by the continuing directors, but not any subsequent Change of Control
effected by the voting trustee or his successor.

          12.  Subrogation.  Upon payment of any Indemnified Amount under
this Agreement, the Corporation will be subrogated to the extent of such
payment to all of the Director's rights of recovery therefor and the
Director will take all reasonable actions requested by the Corporation (at
no cost or penalty to the Director) to secure the Corporation's rights
under this paragraph 11 including executing documents.

          13.  Continuation of Indemnity.  All of the Corporation's
obligations under this Agreement will continue as long as the Director is
subject to any actual or possible Covered Matter, notwithstanding the
Director's termination of service as a director, and in any event for at
least five (5) years subsequent to the date when the Director ceases to be
a director of the Corporation.  The right to indemnification conferred
herein shall be presumed to have been relied upon by the Director in
serving or continuing to serve as a director of the Corporation or in any
capacity with any Affiliate and shall be enforceable as a contract right.

page 9

          14.  Amendments.  Neither the Corporation's Certificate of
Incorporation nor its Bylaws will be changed to increase liability of
directors or to limit the Director's indemnification.  Any repeal or
modification of the Corporation's Certificate of Incorporation or Bylaws or
any repeal or modification of the relevant provisions of any applicable
law, rules or regulations will not in any way diminish any of the
Director's rights or the Corporation's obligations under this Agreement.
This Agreement cannot be amended except with the written consent of the
Corporation and the Director.

          15.  Governing Law.  This Agreement will be governed by Delaware
law without regard to such state's conflicts of laws principles.

          16.  Successors.

               (a)  This Agreement will be binding upon and inure to the
benefit of the parties and their respective heirs, legal representatives
and assigns.

               (b)  The Corporation will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all
or substantially all of the business or assets of the Corporation to assume
all of the Corporation's obligations under this Agreement.  Such assumption
will not release the Corporation from its obligations under this Agreement.

          17.  Severability.  The provisions of this Agreement will be
deemed severable, and if any part of any provision is held illegal, void or
invalid under applicable law, such provision may be changed to the extent
reasonably necessary to make the provision, as so changed, legal, valid and
binding. If any provision of this Agreement is held illegal, void or
invalid in its entirety, the remaining provisions of this Agreement will
not in any way be affected or impaired but will remain binding in
accordance with their terms.

          18.  Notices.  All notices given under this Agreement will be in
writing and delivered either personally, by registered or certified mail
(return receipt requested, postage prepaid), by recognized overnight
courier or by telecopy (if promptly followed by a copy delivered
personally, by registered or certified mail or overnight courier), as
follows:

          If to the Director:      _______________________
                                   _______________________
                                   _______________________
                              
page 10

If to the Corporation:        The San Francisco Company
                              550 Montgomery Street
                              San Francisco CA 94111
                              Attn.: Chief Executive Officer
          
          
or to such other address as either party furnishes to the other in writing.

          19.  Counterparts.  This Agreement may be signed in counterparts.

          IN WITNESS WHEREOF, the parties have executed this Agreement on
the date first written above.

                              THE SAN FRANCISCO COMPANY


                              ______________________________
                              By: __________________________
                              Its:___________________________



                              DIRECTOR


                              ______________________________


page 11

                          INDEMNIFICATION AGREEMENT
 
          This Indemnification Agreement ("Agreement") is made as of March
18, 1998, between The San Francisco Company, a Delaware corporation (the
"Corporation"), and ________________, an individual (the "Officer").

RECITALS

          A.   The Officer is a member of the Corporation's Executive
Management Committee and the Corporation desires that the Officer continue
to serve in such capacity.  The Officer is willing to continue to serve on
the Corporation's Executive Management Committee if the Officer receives
the protection provided by this Agreement.

          B.   The Corporation maintains directors and officers liability
insurance ("D&O Insurance") and intends to continue to maintain such D&O
Insurance in accordance with the provisions of this Agreement.

          C.   The Corporation believes that (1) it is increasingly
difficult to attract and keep qualified senior officers because of
potential liabilities; (2) it is important for a senior officer to have
assurance that indemnification will be available to the fullest extent
permitted by law; and (3) it is in the best interests of the Corporation
and its shareholders for the Corporation to contractually obligate itself
to indemnify the Officer and to set forth the details of the
indemnification process.

          Therefore, in consideration of the premises and the mutual
promises herein contained, the Corporation and the Officer agree as
follows:

          1.   Agreement to Serve.  The Officer will continue to serve as a
member of the Executive Management Committee of the Corporation at the
pleasure of the Corporation's Board of Directors.

          2.   Indemnification.

               (a)  The Corporation shall indemnify and hold harmless the
Officer to the fullest extent permitted under applicable law (including
without limitation Section 28(k) of the Federal Deposit Insurance Act and
Part 359 of the Rules and regulations of the Federal Deposit Insurance
Commission (the "FDIC Rules")) if the Officer was or is a party or
threatened to be made a party to any threatened, pending or completed
action, suit, arbitration (or other alternative dispute resolution
mechanism), or proceeding of any kind, wherever brought, whether civil,
criminal, administrative or investigative and whether formal or informal
(including actions by or in the right of the Corporation and any
preliminary inquiry or claim by any person or authority), by reason of or
associated with the fact that the Officer is or was a director, officer,
partner, trustee, employee, consultant or agent of the Corporation or is or
was serving at the Corporation's request, or for the convenience of or
otherwise to benefit or represent the interests of the Corporation or a
subsidiary of the Corporation, as a director, officer, employee or agent of
another corporation, limited liability company, partnership, joint venture,
trust, employee benefit plan or other enterprise (collectively, an
"Affiliate"), whether or not for profit, or by reason of anything done or
not done by the Officer in any such capacity (collectively, "Covered
Matters").

page 1

Such indemnification will cover all Expenses (as defined
below), liabilities, judgments (including punitive and exemplary damages),
penalties, fines (including excise taxes relating to employee benefit plans
and civil penalties) and amounts paid or to be paid in settlement which are
incurred by or imposed upon the Officer in connection with a Covered
Matter, including all interest assessments on any of the foregoing
(collectively, "Indemnified Amounts").  "Expenses" means all direct or
indirect costs and expenses (including, without limitation, attorneys'
fees, retainers, transcripts, witness fees, expert fees, other professional
fees, court costs and travel costs) incurred by the Officer in connection
with a Covered Matter, together with interest thereon commencing 30 days
after incurrence, other than liabilities, judgments, penalties, fines and
settlement amounts.

               (b)  The Officer will be so indemnified for all Indemnified
Amounts and the Corporation will defend the Officer against claims
(including threatened claims and investigations) which are covered matters,
including claims brought by or on behalf of the Corporation or any
Affiliate, except if it is finally determined by the court of last resort
(or by a lower court if not timely appealed) that the payment is prohibited
by applicable law. 

               (c)  If the Officer is entitled under this Agreement to
indemnification for less than all of the amounts incurred by the Officer in
connection with a Covered Matter, the Corporation will indemnify the
Officer for the indemnifiable amount.

          3.   Claims for Indemnification.  The Officer will give the
Corporation written notice of any claim for indemnification under this
Agreement, but failure to do so shall not affect the Officer's rights
hereunder.  Payment requests will include a schedule setting forth in
reasonable detail the amount requested and will be accompanied (or, if
necessary, followed) by copies of the relevant invoices or other
documentation.  The Corporation will pay Indemnified Amounts directly
without requiring the Officer to make any prior payment.

          4.   Determination of Right to Indemnification.

               (a)  The Officer will be presumed to be entitled to
indemnification under this Agreement and will receive such indemnification,
subject to paragraph 4(b) below, irrespective of whether the Covered Matter
involves allegations of gross negligence or intentional misconduct, alleged
violations of Section 10(b) of the Securities Exchange Act of 1934
(including Rule 10b-5 thereunder), alleged breach of the Officer's
fiduciary duties (including duties of loyalty or care) or any other claim.

               (b)  The Officer shall be conclusively presumed to have met
any required standard of conduct established by applicable law, unless a
determination is made in the written opinion of independent counsel to the
Corporation, applicable law (including the FDIC Rules) permits
indemnification in a Covered Matter only as authorized in the specific case
upon a determination that indemnification is proper in the circumstances
because the Officer has met the required standard of conduct.  In such
event:

                    (1)  The Corporation will immediately give the Officer
notice, with a copy of counsel's opinion, that an evaluation and
determination will be made under this paragraph 4(b).

                    (2)  Such evaluation and determination will be made, as
promptly as possible and in good faith, by a majority vote of the members
of the Corporation's Board of Directors who are not parties or threatened
to be made parties to the Covered Matter in question or, if so requested by
the Officer, in a written opinion by independent counsel to the Corporation
(who shall not be the same as the counsel referred to above), or by such
other procedure as the Corporation and the Officer agree.

page 2     

                    (3)  The Officer will be entitled to present
information, and to be represented by counsel, in connection with such
evaluation and determination.

                    (4)  The Officer will be presumed to have met the
required standard of conduct unless it is conclusively demonstrated to the
determining firm or body that the Officer has not met the required standard
of conduct.  If the Officer is successful (which includes a settlement
without admission of liability) on the merits or otherwise or in the
defense of any claim, issue or matter therein, he shall be conclusively
presumed to have met the required standard of conduct.

                    (5)  The cost of any evaluation and determination under
this paragraph 4(b) (including attorneys' fees and other expenses incurred
by the Officer) will be borne by the Corporation.

                    (6)  If the requested indemnification falls within the
scope of the FDIC Rules, the FDIC Rules will also be observed.

                    (7)  The termination of any proceeding by judgment,
order, settlement, arbitration award or conviction, or upon a plea of nolo
contendere or its equivalent shall not affect this presumption or, except
as determined by a judgment or other final adjudication adverse to the
Officer, establish a presumption with regard to any factual matter relevant
to determining the Officer's rights to indemnification hereunder.  

               (c)  Determination of the Officer's entitlement to
indemnification shall be made not later than thirty (30) days after the
Corporation's receipt of his written request for such indemnification.  If
the person or persons so empowered to make a determination pursuant to
paragraph 4 hereof shall have failed to make the requested determination
within thirty (30) days after any judgment, order, settlement, dismissal,
arbitration award, conviction, acceptance of a plea of nolo contendere or
its equivalent, or other disposition or partial disposition of any
proceeding or any other event which could enable the Corporation to
determine the Officer's entitlement to indemnification, the requisite
determination that the Officer is entitled to indemnification shall be
deemed to have been made.

          5.   Advance of Expenses.

               (a)  Subject to paragraphs 5(b) and (c), and notwithstanding
Section 4(b), before final adjudication of a Covered Matter, upon the
Officer's request pursuant to paragraph 3 above, the Corporation will
promptly advance Expenses directly; provided, however, if the Officer has
already paid any Expenses, the Corporation will promptly reimburse the
Officer for all such Expenses.  

page 3

               (b)  If, in the opinion of counsel to the Corporation, the
FDIC Rules permit advancement of Expenses with respect to a federal banking
agency proceeding or action only as authorized upon a determination that
the Officer has met a standard of conduct established by the FDIC Rules,
the determination will be made in accordance with paragraph 4(b) above to
the extent not inconsistent with FDIC Rules. 

               (c)  The Officer will repay any Expenses that are advanced
under this paragraph 5 if so required by the FDIC Rules or if it is
ultimately determined, in a final, nonappealable judgment rendered by the
court of last resort (or by a lower court if not timely appealed), that the
Officer is not entitled to be indemnified against such Expenses and
requires repayment.

               (d)  The Corporation shall use its best efforts to provide
the Officer on or before the time of any Change of Control security and
liquidity for the obligations of the Corporation to indemnify and advance
Expenses to the Officer pursuant to this Agreement (whether by letter of
credit, the posting of assets as security, or other means). 

          6.   Defense of Claim.

               (a)  The Corporation, jointly with any other indemnifying
party, will be entitled to assume the defense of any Covered Matter as to
which the Officer requests indemnification, provided, however, the
Corporation shall not be entitled to assume the defense if there has been a
Change of Control or the Officer is entitled to employ the Officer's own
counsel under paragraph 6(c) below, in which case both parties shall be
entitled to participate in the defense.

               (b)  Counsel selected by the Corporation to defend any
Covered Matter will be subject to the Officer's advance written approval.

               (c)  The Officer may employ the Officer's own counsel in a
Covered Matter and will be fully reimbursed therefor if (1) the Corporation
approves, in writing, the employment of such counsel or (2) either (A) the
Officer has reasonably concluded that there may be a conflict of interest
between the Corporation and the Officer or between the Officer and other
parties represented by counsel employed by the Corporation to represent the
Officer in such action or (B) the Corporation has not employed counsel
reasonably satisfactory to the Officer to assume the defense of such
Covered Matter promptly after the Officer's request.

               (d)  Neither the Corporation nor the Officer will settle any
Covered Matter without the other's written consent, which will not be
unreasonably withheld.

               (e)  If the Officer is required to testify (in court
proceedings, depositions, informal interviews or otherwise), consult with
counsel, furnish documents or take any other reasonable action in
connection with a Covered Matter, the Corporation will reimburse the
Officer's reasonable expenses in connection therewith and also pay the
Officer reasonable compensation for time spent by the Officer for which the
Officer is otherwise not compensated by the Corporation.

page 4

          7.   Disputes; Enforcement.

               (a)  If there is a dispute relating to the validity or
enforceability of this Agreement or a denial of indemnification, advance of
Expenses or payment of any other amounts due under this Agreement or the
Corporation's Certificate of Incorporation or Bylaws, the Corporation will
provide such indemnification, advance of Expenses or other payment until a
final, nonappealable judgment that the Officer is not entitled to such
indemnification, advance of Expenses or other payment has been rendered by
the court of last resort (or by a lower court if not timely appealed). The
Officer will repay such amounts if such final, nonappealable judgment so
requires.

               (b)  In the event that (i) a determination pursuant to
Section 4(b) hereof is made that the Officer is not entitled to
indemnification, (ii) advances of Expenses are not made pursuant to this
Agreement, (iii) payment has not been timely made following a determination
of entitlement to indemnification pursuant to this Agreement, or (iv) the
Officer otherwise seeks enforcement of this Agreement, the Officer shall be
entitled to a final adjudication in the Court of Chancery of the State of
Delaware of the remedy sought.  Alternatively, unless court approval is
required by law for the indemnification sought by the Officer, the Officer
at his option may seek an award in arbitration to be conducted by a single
arbitrator pursuant to the commercial arbitration rules of the American
Arbitration Association now in effect, which award is to be made within
ninety (90) days following the filing of the demand for arbitration.  The
Corporation shall not oppose the Officer's right to seek any such
adjudication or arbitration award.  In any such proceeding or arbitration
the Officer shall be presumed to be entitled to indemnification and
advancement of Expenses under this Agreement and the Corporation shall have
the burden of proof to overcome that presumption.  In the event that a
determination that Officer is not entitled to indemnification, in whole or
in part, has been made pursuant to Section 4(b) hereof, the decision in the
judicial proceeding or arbitration provided in this Section 7 shall be made
de novo and the Officer shall not be prejudiced by reason of a
determination that he is not entitled to indemnification.  If a
determination that the Officer is entitled to indemnification has been made
pursuant to Section 4(b) hereof, or is deemed to have been made pursuant to
Section 4 hereof or otherwise pursuant to the terms of this Agreement, the
Corporation shall be bound by such determination in the absence of a
misrepresentation of a material fact by the Officer in connection with such
determination.  The Corporation shall be precluded from asserting that the
procedures and presumptions of this Agreement are not valid, binding and
enforceable.  The Corporation shall stipulate in any such court or
arbitration that the Corporation is bound by all the provisions of this
Agreement and is precluded from making any assertion to the contrary.

               (c)  The Corporation will reimburse all of the Officer's
reasonable expenses (including attorneys' fees) in pursuing an action to
enforce the Officer's rights under this Agreement unless a final,
nonappealable judgment against the Officer has been rendered in such action
by the court of last resort (or by a lower court if not timely appealed) or
unless the FDIC Rules otherwise require to the same effect as set forth in
Section 5(c).  At the Officer's request, such expenses will be advanced by
the Corporation to the Officer as incurred before final resolution of such
action by the court of last resort; such expenses will be repaid by the
Officer if a final, nonappealable judgment in the Corporation's favor is
rendered in such action by the court of last resort (or by a lower court if
not timely appealed) to the same effect as set forth in Section 5(c).

page 5

          8.   Insurance.

               (a)  The Corporation hereby covenants and agrees that, as
long as the Officer continues to serve as an officer of the Corporation and
thereafter as long as the Officer may be subject to any possible Covered
Matter, the Corporation, subject to paragraph 8(c) below, shall maintain in
full force and effect D&O Insurance from established and reputable insurers
in amounts not less than, and with coverage comparable to, those in effect
as of the date of this Agreement.

               (b)  In all D&O Insurance policies, the Officer shall be
named as an insured in such a manner as to provide the Officer the same
rights and benefits as are accorded the most favorably insured of the
Company's directors or officers.

               (c)  The Corporation will not be required to maintain D&O
Insurance if the Board of Directors of the Corporation determines, after
diligent inquiry, that (1) such insurance is not available; (2) the
premiums for available insurance are disproportionate to the amount of
coverage and to the premiums paid by other corporations similarly situated;
or (3) the coverage provided by such insurance is so limited by exclusions
that it provides an insufficient benefit.  The Board of Directors of the
Corporation will, from time to time, in good faith review any decision not
to maintain D&O Insurance and will purchase such insurance at any time that
the conditions of this paragraph 8(c) cease to apply.

               (d)  The parties will cooperate to obtain advances of
Expenses, indemnification payments and consents from D&O Insurance carriers
in any Covered Matter to the full extent of applicable D&O Insurance.  The
existence of D&O Insurance coverage will not diminish or limit the
Corporation's obligation to make indemnification payments to the Officer. 
Amounts paid directly to the Officer with respect to a Covered Matter by
the Corporation's D&O Insurance carriers will be credited to the amounts
payable by the Corporation to the Officer under this Agreement.

               (e)  Payments under any D&O Insurance policies shall be
subject to the FDIC Rules.

          9.   Limitations of Actions; Limitation of Indemnity.

               (a)  No action will be brought by or on behalf of the
Corporation against the Officer or the Officer's heirs or personal
representatives relating to the Officer's service as an officer, after the
expiration of one year from the date the Officer ceases (for any reason) to
serve as an officer of the Corporation, and any claim or cause of action of
the Corporation will be extinguished and deemed released unless asserted by
the filing of a legal action before the expiration of such period.

               (b)  Notwithstanding the provisions hereof, the Corporation
shall not be obligated pursuant to the terms of this Agreement:

                    (1)  Claims Initiated by the Officer.  To indemnify or
advance expenses to the Officer with respect to proceedings or claims
initiated or brought voluntarily by the Officer and not by way of defense,
except with respect to proceedings brought to establish or enforce a right
to indemnification under this Agreement or any other statute or law or
otherwise as required under Section 145 of the Delaware General Corporation
Law, but such indemnification or advancement of expenses may be provided by
the Corporation in specific cases if the Board of Directors has approved
the initiation or bringing of such suit;

page 6

                    (2)  Lack of Good Faith.  To indemnify the Officer for
any expenses incurred by the Officer with respect to any proceeding
instituted by the Officer to enforce or interpret this Agreement, if a
court of competent jurisdiction determines that each of the material
assertions made by the Officer in such proceeding was not made in good
faith or was frivolous;

                    (3)  Insured Claims.  To indemnify the Officer for
expenses or liabilities of any type whatsoever (including, but not limited
to, judgments, fines, ERISA excise taxes or penalties and amounts paid in
settlement) which have been paid directly to the Officer by an insurance
carrier under D&O Insurance maintained by the Corporation; or

                    (4)  FDIC Rules.  To make any indemnification payment
contrary to the FDIC Rules.

                    (5)  Short Swing Profits.  To indemnify the Officer for
expenses or liabilities incurred by the Officer under Section 16 of the
Securities and Exchange Act of 1934.

          10.  Rights Not Exclusive; Benefit of Amendments to Law.  The
indemnification provided to the Officer under this Agreement will be in
addition to any indemnification provided to the Officer by any law,
agreement, Board resolution, provision of the Certificate of Incorporation
or Bylaws of the Corporation or otherwise (including, but not limited to,
under that certain Indemnification Agreement (the "Bank Agreement") made as
of _________, 1998, between The Bank of San Francisco, a California
corporation (the "Bank") and the Officer).  If applicable laws, rules or
regulations are amended after the date of this Agreement to permit
indemnification of a type or to an extent beyond or greater than that
provided by this Agreement, the Officer shall be entitled to
indemnification hereunder of such further types or to such further extent
as is then permitted; provided, however, that no such amendment shall in
any way restrict or limit the rights of the Officer hereunder and the term
"applicable law" shall refer only to the same as amended to the extent such
amendment permits the Corporation to provide such greater indemnification. 
The Corporation and the Officer agree that the Officer may pursue his
remedies under both this Agreement and the Bank Agreement, under only this
Agreement, or under only the Bank Agreement, and that the manner in which
the Officer chooses to pursue (or not to pursue) his remedies under this
Agreement and/or under the Bank Agreement shall not in any way restrict or
limit the rights of the Officer under this Agreement.

          11.  Change in Control.  "Change in Control" shall mean the
occurrence of any of the following after January 1, 1998: 

               (a)  Both (1) any "person" (as defined below) is or becomes
the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Corporation representing at
least 15% of the total voting power represented by the Corporation's then
outstanding voting securities; and (2) the beneficial ownership by such
person of securities representing such percentage has not been approved by
a majority of the "continuing directors" (as defined below); or

page 7

               (b)  Any "person" (as defined below) is or becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Corporation representing at
least 50% of the total voting power represented by the Corporation's then
outstanding voting securities; or

               (c)  A change in the composition of the Board occurs, as a
result of which fewer than two-thirds of the incumbent directors are
directors who either (1) had been directors of the Corporation on January
1, 1998 (the "Original Directors") or (2) were elected, or nominated for
election, to the Board with the affirmative votes of at least a majority in
the aggregate of the Original Directors who were still in office at the
time of the election or nomination and directors whose election or
nomination was previously so approved (the "continuing directors"); or

               (d)  The stockholders of the Corporation approve a merger or
consolidation of the Corporation with any other corporation, if such merger
or consolidation would result in the voting securities of the Corporation
outstanding immediately prior thereto representing (either by remaining
outstanding or by being converted into voting securities of the surviving
entity) 50% or less of the total voting power represented by the voting
securities of the Corporation or such surviving entity outstanding
immediately after such merger or consolidation; or

               (e)  The stockholders of the Corporation approve (1) a plan
of complete liquidation of the Corporation or (2) an agreement for the sale
or disposition by the Corporation of all or substantially all of the
Corporation's assets.

     For purposes of Subsection (a) above, the term "person" shall have the
same meaning as when used in sections 13(d) and 14(d) of the Exchange Act,
but shall exclude (x) a trustee or other fiduciary holding securities under
an employee benefit plan of the Corporation or of a parent or subsidiary of
the Corporation or (y) a corporation owned directly or indirectly by the
stockholders of the Corporation in substantially the same proportions as
their ownership of the common stock of the Corporation.

     Any other provisions of this Section 11 notwithstanding, the term
"Change in Control" shall not include (1) a transaction, if undertaken at
the election of the Corporation, the result of which is to sell all or
substantially all of the assets of the Corporation to another corporation
(the "surviving corporation"); provided that the surviving corporation is
owned directly or indirectly by the stockholders of the Corporation
immediately following such transaction in substantially the same
proportions as their ownership of the Corporation's common stock
immediately preceding such transaction; and provided, further that the
surviving corporation expressly assumes this Agreement; or (2) an
acquisition of voting and other rights on outstanding shares by a voting
trustee who is approved (and the agreement under which he acts is approved)
by the continuing directors, but not any subsequent Change of Control
effected by the voting trustee or his successor.

page 8

          12.  Subrogation.  Upon payment of any Indemnified Amount under
this Agreement, the Corporation will be subrogated to the extent of such
payment to all of the Officer's rights of recovery therefor and the Officer
will take all reasonable actions requested by the Corporation (at no cost
or penalty to the Officer) to secure the Corporation's rights under this
paragraph 11 including executing documents.

          13.  Continuation of Indemnity.  All of the Corporation's
obligations under this Agreement will continue as long as the Officer is
subject to any actual or possible Covered Matter, notwithstanding the
Officer's termination of service as an officer, and in any event for at
least five (5) years subsequent to the date when the Officer ceases to be
an officer of the Corporation.  The right to indemnification conferred
herein shall be presumed to have been relied upon by the Officer in serving
or continuing to serve as an officer of the Corporation or in any capacity
with any Affiliate and shall be enforceable as a contract right.

          14.  Amendments.  Neither the Corporation's Certificate of
Incorporation nor its Bylaws will be changed to increase liability of
officers or to limit the Officer's indemnification.  Any repeal or
modification of the Corporation's Certificate of Incorporation or Bylaws or
any repeal or modification of the relevant provisions of any applicable
law, rules or regulations will not in any way diminish any of the Officer's
rights or the Corporation's obligations under this Agreement. This
Agreement cannot be amended except with the written consent of the
Corporation and the Officer.

          15.  Governing Law.  This Agreement will be governed by Delaware
law without regard to such state's conflicts of laws principles.

          16.  Successors.

               (a)  This Agreement will be binding upon and inure to the
benefit of the parties and their respective heirs, legal representatives
and assigns.

               (b)  The Corporation will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all
or substantially all of the business or assets of the Corporation to assume
all of the Corporation's obligations under this Agreement.  Such assumption
will not release the Corporation from its obligations under this Agreement.

          17.  Severability.  The provisions of this Agreement will be
deemed severable, and if any part of any provision is held illegal, void or
invalid under applicable law, such provision may be changed to the extent
reasonably necessary to make the provision, as so changed, legal, valid and
binding. If any provision of this Agreement is held illegal, void or
invalid in its entirety, the remaining provisions of this Agreement will
not in any way be affected or impaired but will remain binding in
accordance with their terms.

          18.  Notices.  All notices given under this Agreement will be in
writing and delivered either personally, by registered or certified mail
(return receipt requested, postage prepaid), by recognized overnight
courier or by telecopy (if promptly followed by a copy delivered
personally, by registered or certified mail or overnight courier), as
follows:


page 9

          If to the Officer:       _______________________
                                   _______________________
                                   _______________________
                              

If to the Corporation:        The San Francisco Company
                              550 Montgomery Street
                              San Francisco CA 94111
                              Attn.: Chief Executive Officer
          
          
or to such other address as either party furnishes to the other in writing.

          19.  Counterparts.  This Agreement may be signed in counterparts.

          IN WITNESS WHEREOF, the parties have executed this Agreement on
the date first written above.

                              THE SAN FRANCISCO COMPANY


                              ______________________________
                              By: __________________________
                              Its:___________________________



                              OFFICER


                              ______________________________

page 10