Document:

Executive Performance Unit Plan

 EXHIBIT 10.7 
 FHLBANK San Francisco 
 2007 Executive Performance Unit Plan 
 Summary Description 
 PLAN PURPOSE

 To optimize the Bank’s performance in accomplishing Board-approved goals. 
 PLAN OBJECTIVES 
 To motivate key executives to exceed specified long-term Bank goals that directly
support the business plan and long-term strategic plan. Attract and retain outstanding executives by providing a competitive total compensation program, including a cash-based long-term incentive reward opportunity tied to the performance of the
Bank against specified performance measures. 
 PARTICIPANTS 
 Participants are key executives whose performance has a major impact on the Bank’s success. Participants are the incumbents in the Bank’s Executive Committee officer positions, including: 
 President 
 Executive Vice President 
 Senior Vice Presidents (excluding the Senior Vice President, Director of Internal Audit) 
 PERFORMANCE PERIOD 
 The Performance Unit Plan (PUP) pays incentive awards related to the achievement of
Bank performance over a three-year performance period. The 2007 Plan is effective January 1, 2007 and is based on performance from January 1, 2007 through December 31, 2009. 
 PERFORMANCE METRICS 
 Performance metrics balance
financial, member, and community interests, focusing on achievement of Potential Dividend Spread and market penetration goals. Potential Dividend Spread will be weighted 40% and market penetration will be weighted 60%. Target performance levels
reflect long-term performance expectations. Unlike the Executive Incentive Plan (EIP), participants do not have an individual goal. 
  

	1.	3-Year Average Potential Dividend Spread: Potential Dividend Spread is the primary measure the Bank uses to determine total rate of return to shareholders; it is expressed as
a spread to the Bank’s benchmark yield on invested capital before any provision for retained earnings or accounting impacts of FAS 133. The target Potential Dividend Spread has been set at 0.58% and represents the projected average for the
performance period (January 1, 2007 through December 31, 2009). The target Potential Dividend Spread is consistent with the Bank’s Strategic Plan forecast, and reflects the Bank’s continued mission-consistent focus on member’s
mortgage finance business. Threshold (75% of plan) Potential Dividend Spread has been set at 0.33%, 150% of target has been set at 1.08% and 200% of target has been set at 1.58%. 

  

	2.	3-Year Average Market Penetration: Market penetration is based on the 3-year average of member credit as a percentage of the members’ total wholesale borrowings over the
performance period measured by the average of the actual achievement levels under the 2007, 2008, and 2009 annual incentive plans, and will be set at the end of the performance period. 

 Actual achievement of performance metrics one (1) and two (2) is subject to adjustment for changes resulting from movements in interest rates, changes in
financial strategies or policies, any significant change in Bank membership, as well as other factors determined by the Board for which management should not receive credit or be held accountable. 

 PUP ACHIEVEMENT MEASURES 
 The Performance Unit Plan rewards four levels of performance achievement, as follows: 
  

			
	 Achievement Level
	  	 Measure Definition

	 Threshold (75%)
	  	Performance that is considered a threshold level of successful achievement. This is the minimum level of performance which must be achieved for awards to be paid.
		
	 Target (100%)
	  	Performance that is expected under the Bank’s Strategic Plan forecast. Incentive payments are made at the target (100%) level found in the award ranges scale on the following
page.
		
	 150% of Target
	  	An optimistic achievement level based on expected business.
		
	 200% of Target
	  	The most optimistic achievement level based on reasonable business assumptions and conditions.

 AWARD DETERMINATION 
 An award is calculated and paid in whole or part at the end of the 2007 Plan term (during the first quarter of 2010) based on achievement of a minimum level of performance under the goals. Awards earned are based on
the level at which the 3-year performance goals have been achieved. Final Awards will be prorated for Participants promoted or hired into an eligible position during the Performance Period, and for Participants who take a leave of absence during the
Performance Period. Target payouts for the January 1, 2007 through December 31, 2009 performance period are presented in the chart below: 
  

														
	Dividend Potential Goal (3 Yr. Avg.)	 	 	 	  	Market Penetration Goal (3 Yr. Avg.)1	 
						
	 	  	 	 	 	% of Award
Opportunity	 	 	 	  	 	  	% of Award
Opportunity	 
	 Threshold
	  	0.33	%	 	20	%	 		  	Threshold	  	30	%
	 Target
	  	0.58	%	 	40	%	 		  	Target	  	60	%
	 150% of Target
	  	1.08	%	 	60	%	 	+	  	150% of Target	  	90	%
	 200% of Target
	  	1.58	%	 	80	%	 		  	200% of Target	  	120	%
	
	X Target Award % = Formula Award	 

	
	  

 Notes: 
 1
– Performance levels for market penetration will be based on the average of the actual 3-year market penetration performance during the 3-year PUP period. 
 Award payouts may be modified up or down at the Board’s discretion (+/- 25% of the dollar award derived from the table) to account for performance that is not captured in the performance metrics. Performance below the threshold
achievement level for either measure normally will not result in an incentive award. 
 AWARD OPPORTUNITY 
 Individual PUP targets for each plan year are established annually for each participant at the beginning of each
calendar year. Target award levels are stated below as a percentage of the February 1st base salary at the
beginning of the performance period. 

 Award Range Scale 
 2007 Plan Year – PUP Payout as % of 2007 Base Salary (as of February 1st) 
  

									
	Position Level	  	Threshold1	 	Target2	 	150% of Target3	 	200% of Target4
	 President
	  	15%	 	30%	 	45%	 	60%
	 Executive Vice President
	  	14%	 	27%	 	40%	 	55%
	 Senior Vice Presidents
	  	12%	 	25%	 	37%	 	50%

	
	  

 Notes: 
 1
– 50% of target payout; based on 0.33% Potential Dividend Spread and the average of the actual 3-year market penetration performance during the plan period. 
 2 – Based on achieving 0.58% Potential Dividend Spread and the average of the actual 3-year market penetration performance during the plan period. 
 3 – 150% of target payout; based on achieving 1.08% Potential Dividend Spread and the average of the actual 3-year market penetration performance during the plan period. 
 4 – 200% of target payout; based on achieving 1.58% Potential Dividend Spread and the average of the actual 3-year market penetration performance during the plan period. 
 Cash awards are paid to participants at the end of the 3-year performance period (during the first quarter of 2010). 
 Example of how award is calculated for a Senior Vice President for 2007 PUP 
  

													
	 (60% weight)
 3 yr. Average Market Penetration Level Achieved: (200% of Target)
	 	}	  	Percent of Target         Payout: 160%        	  	2007 Base Salary	  	Target PUP Payout (% of Base Salary)	  	Payout % Based
on Performance	  	PUP Payment
paid Q1 2010
	 (40% weight)
 3 yr. Average Potential Dividend Spread Achieved: 0.58% (Target or 100%)
	 	  	  	$240,000 X	  	25% X	  	160% =	  	$96,000

 Payments under this plan are subject to the approval of the Board of Directors. To be eligible for the
performance unit plan payment you must be employed with the Bank when the payment is disbursed. PUP awards will be prorated for participants in position less than a full plan term, including participants who have a leave of absence greater than one
month during the plan term. The awards will be distributed no later than two business days following the date of Board approval. All compensation and incentive plans are subject to review and revision at the Bank’s discretion. Such plans are
reviewed regularly to ensure they are competitive and equitable.2007 President's Incentive Plan

 EXHIBIT 10.11 
 FHLBANK SAN FRANCISCO 
 2007 PRESIDENT’S INCENTIVE PLAN 
 PLAN PURPOSE 
 To optimize the Bank’s performance
in accomplishing Board approved goals and objectives. 
 PLAN OBJECTIVES 
 To motivate key executive (President) to exceed Bank goals and objectives which directly support the business plan and long-term strategic plan. To attract and retain an outstanding executive by providing a
competitive total compensation program, including incentive award opportunity. 
 INCENTIVE GOALS, WEIGHTS, AND MEASURES 
 Incentive Goals 
 The incentive goals are based primarily on
the objectives set forth in the Bank’s 2007 business plan. 
  

	The	President’s incentive goals and objectives are identified below: 

  

	1.	2007 Potential Dividend Spread: Dividend potential before any provision for retained earnings or accounting impacts of FAS 133 is at least 93.0 basis points
over the benchmark yield on invested capital. 

  

	2.	2007 Market Penetration: Achieve a target market penetration of wholesale borrowings and convert non-borrowing members into borrowing members. 

  

	 	•	 	 Market penetration is divided into sub-categories of members found on the following page. [*]. 

	 	•	 	 Convert [*] non-borrowing member institutions into borrowing members. This is consistent with the Bank’s strategic objective to increase diversification
of its core credit business and maximize the value of membership among all members. 

  

	3.	2007 Leadership: Provide effective leadership and direction to the Bank and within the Federal Home Loan Bank System. 

 The Board of Directors determines whether or not to apply a discretionary component to the incentive compensation payments representing achievements that are not
necessarily measured or identified under the Plan. 
 Incentive Goal Weights 
 The incentive goal weights are set forth in the 2007 goal weights and measures table found on the following page. 
 Actual
achievement of Bank goals one (1) and two (2) are subject to adjustment for changes resulting from movements in interest rates, changes in financial strategies or policies, any significant change in Bank membership, as well as other
factors determined by the Board. 
  

	
	  

  

	[*]	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portion. 

 Incentive Goal Achievement Measures 
 The plan rewards levels of goal achievement as follows: 
  

			
	Achievement Level	  	Measure Definition
	200% of target	  	The most optimistic achievement level based on reasonable business assumptions and conditions.
	150% of target	  	An optimistic achievement level based on expected business.
	Target (100%)	  	Performance that is considered a target level of successful plan achievement. Incentive payments are made at the target (100%) level found in the award range scale on the following
page.
	Threshold (75% of target)	  	A threshold level of performance.

 2007 
  

													
	Goals	  	Weights	  	Measures
	 	  	 	  	 	  	(75%)
Threshold	  	(100%)
Target	  	(150%)
Exceeds
Target	  	(200%)
Far Exceeds
Target
	 Potential Div. Spread
	  	32%	  	 	  	Benchmark
+ 68.0 bps	  	Benchmark + 93.0 bps	  	Benchmark + 143.0 bps	  	Benchmark + 193.0 bps
	 Market Penetration
	  	36%	  	Customer
Segment	  	% of Wholesale Borrowings	  	% of Wholesale Borrowings	  	% of Wholesale Borrowings	  	% of Wholesale Borrowings
							
		  		  	[*]	  	 [*]
	  	 [*]
	  	 [*]
	  	 [*]

							
		  		  		  	 Average Balance
	  	 Average Balance
	  	 Average Balance
	  	 Average Balance

							
		  		  	[*]	  	 [*]
	  	 [*]
	  	 [*]
	  	 [*]

							
		  		  		  	 Average Balance
	  	 Average Balance
	  	 Average Balance
	  	 Average Balance

	 	  	 	  	[*]	  	[*]	  	[*]	  	[*]	  	[*]
	 Leadership Goal
	  	10%	  	 	  	BOD Evaluation	  	BOD Evaluation	  	BOD Evaluation	  	BOD Evaluation
	 Discretionary
	  	22%	  	 	  	BOD Determines	  	BOD Determines	  	BOD Determines	  	BOD Determines
							
	Total	  	100%	  		  		  		  		  	

 Achievement levels can not exceed 250% for each market penetration goal segment. And, the aggregate achievement
level for each plan goal/objective (dividend potential, market penetration, overall bank-wide performance, and individual goal) can not exceed 200%. 

	
	  

	[*]	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portion. 

 AWARD DETERMINATION 
 The incentive award will be based on success in achieving the key business goals. At yearend, accomplishments will be assessed and a percent of achievement will be determined for each goal. 
  

								
	Percent of Achievement Scale	  	Achievement Levels
	 0% - 200%
	  	200	%	 	=	  	Far Exceeds Target
		  	150	%	 	=	  	Exceeds Target
		  	100	%	 	=	  	Target
		  	75-99	%	 	=	  	Threshold

 For each goal, the percent of achievement (subject to limits) will be multiplied by the appropriate
weights. The weighted achievements will then be added to determine the total weighted achievement. The basis for award opportunity is total weighted achievement that can not exceed 200%. Performance from 75-99% (threshold level) is below the target
achievement level and therefore will result in an award less than the target award. No awards will be paid for performance between 0-74%. 
 AWARD
OPPORTUNITY 
 The Board of Directors has the discretion to approve incentive awards for achievement below 75% total weighted achievement. And,
the Board of Directors has full discretion to modify any and all incentive payments. 
  

			
	Total Weighted Achievement	  	Award Ranges as a % of Base Salary
	 200%
	  	60%
	 150-199%
	  	45-59%
	 100-149%
	  	30-44%
	 75-99%
	  	15-29%
	 0-74%
	  	Award at the discretion of the Board of Directors

 Payments under this plan are subject to the approval of the Board of Directors and will be distributed
within two business days following the Board’s approval at their January 2008 meeting.

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