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EXHIBIT 10.11

FHLBANK SAN FRANCISCO

EXECUTIVE INCENTIVE PLAN

as Amended and Restated May 28, 2021

Approved 5/28/21

FEDERAL HOME LOAN BANK OF SAN FRANCISCO
EXECUTIVE INCENTIVE PLAN
TABLE OF CONTENTS

									
			PAGE

	ARTICLE I	INTRODUCTION	1 	
			
	Section 1.1	Purpose	1 	
	Section 1.2	Effective Date	1 	
	Section 1.3	Supplements	1 	
			
	ARTICLE II	ELIGIBILITY AND PARTICIPATION	1 	
			
	Section 2.1	Eligibility	1 	
	Section 2.2	Participation	1 	
			
	ARTICLE III	AWARDS	2 	
			
	Section 3.1	Awards	2 	
	Section 3.2	Performance Goals and Qualifiers	3 	
	Section 3.3	Vesting of Awards for Participants	4 	
	Section 3.4	Gap Year Awards for Participants	5 	
	Section 3.5	Effect of Termination of Employment	5 	
	Section 3.6	Effect of Change in Control	8 	
	Section 3.7	Payment of Awards	9 	
	Section 3.8	Reduction or Forfeiture of Awards	10 	
			
	ARTICLE IV	ADMINISTRATION	11 	
			
	Section 4.1	Appointment of the President and CEO	11 	
	Section 4.2	Powers and Responsibilities of the Administrator	11 	
	Section 4.3	Income and Employment Tax Withholding	12 	
	Section 4.4	Plan Expenses	12 	
			
	ARTICLE V	BENEFIT CLAIMS	12 	
			
	ARTICLE VI 	AMENDMENT & TERMINATION OF THE PLAN	12 	
			
	Section 6.1	Amendment of the Plan	12 	
	Section 6.2	Termination of the Plan	12 	
			
	ARTICLE VII	MISCELLANEOUS	12 	
			

									
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	Section 7.1	Governing Law	12 	
	Section 7.2	Headings and Gender	13 	
	Section 7.3	Spendthrift Clause	13 	
	Section 7.4	Counterparts	13 	
	Section 7.5	No Enlargement of Employment Rights	13 	
	Section 7.6	Limitations on Liability	13 	
	Section 7.7	Incapacity of Participant	13 	
	Section 7.8	Evidence	14 	
	Section 7.9	Action by Bank	14 	
	Section 7.10	Severability	14 	
	Section 7.11	Information to be Furnished by a Participant	14 	
	Section 7.12	Attorneys’ Fees	14 	
	Section 7.13	Binding on Successors	14 	
			
	APPENDIX I: 2017 Performance Period Goals & Qualifiers & Awards Scale/Awards
	APPENDIX II: Awards and Goals Applicable to 2020 Gap Year (2017-2019 LTIP)
	APPENDIX III: Form of Non-Solicitation and Non-Disclosure Agreement
	APPENDIX IV: 2018 Performance Period Goals, Qualifiers, and Awards Scale
	APPENDIX V: 2019 Performance Period Goals, Qualifiers & Awards Scale
	APPENDIX VI: 2020 Performance Period Goals, Qualifiers & Awards Scale

	APPENDIX VII: 2021 Performance Period Goals, Qualifiers & Awards Scale

	APPENDIX VIII:  2022 Performance Period Goals, Qualifiers & Awards Scale

									
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ARTICLE I
INTRODUCTION
Section 1.1    Purpose.  The purpose of the Federal Home Loan Bank of San Francisco Executive Incentive Plan (the “Plan”) is to attract and retain key executives of the Federal Home Loan Bank of San Francisco (the “Bank”) and to motivate and focus their efforts on achieving the Bank’s business plan and accomplish its goals and objectives while maintaining the safety and soundness of the Bank.  The Plan is a cash-based incentive plan that provides award opportunities based on achievement of performance goals.
Section 1.2    Effective Date.  The “Effective Date” of the Plan is January 1, 2017.
Section 1.3    Supplements.  The provisions of the Plan may be modified by supplements to the Plan that are approved by the Board or a committee delegated by the Board.  The terms and provisions of each supplement are a part of the Plan and supersede any other provisions of the Plan to the extent necessary to eliminate any inconsistencies between the supplement and any other Plan provisions.
ARTICLE II
ELIGIBILITY AND PARTICIPATION
Section 2.1    Eligibility.  Any senior executive officer (specifically, the President and CEO, each Executive Vice President as of April 15, 2019, and any Senior Vice President who was eligible as of December 31, 2018,) of the Bank, hired/employed as a regular full-time employee before October 1st of the calendar year, will become a “Participant” in the Plan on a prorated basis for that calendar year, excluding the Executive Vice President and Director of Internal Audit, who, subject to approval of the Board, participates in the Federal Home Loan Bank of San Francisco Executive Internal Audit Incentive Plan.  Participants must have an executed agreement on file with the Bank containing non-disclosure, non-disparagement, and non-solicitation provisions in a form similar to the form provided in Appendix III to the Plan (“Non-Solicitation Agreement”).
Section 2.2    Participation.  A senior executive officer will become a Participant as of the later of the Effective Date, the senior executive officer’s date of hire/employment, or the date on or after the Effective Date the senior executive officer
									
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satisfies the automatic eligibility provisions described in Section 2.1.  Any Participant may be removed as an active Participant by the Board effective as of any date.

ARTICLE III
AWARDS
Section 3.1    Awards.  No later than the beginning of each Performance Period, the Board will establish Award Levels (as defined in Section 3.1(b) for eligible Participants.  For each Performance Period, the Award Levels established by the Board will be set forth in Appendices to the Plan, each of which shall be incorporated into the Plan.  As described in this Article, Awards may be Annual Awards (as defined in subsection 3.3(a)), Deferred Awards (as defined in subsection 3.1(b)), or Gap Year Awards (as defined in subsection 3.4(a)).  Each Award will be equal to a percentage of the Participant’s annual Compensation.  “Compensation” means the Participant’s average annual base salary for the Performance Period; provided, however, for the Performance Period commencing January 1, 2019, the average will be based on the eleven month-period commencing February 1, 2019. 
(a)    Performance Periods.  A “Performance Period” is the one-calendar year period over which an Annual Award can be earned and vested pursuant to subsection 3.3(a).  A “Deferral Performance Period” is the three-calendar year period over which a Deferred Award can be vested pursuant to subsection 3.3(b).  A Deferral Performance Period begins on the January 1st immediately following the applicable Performance Period.
(b)    Award Levels.  The “Award Level” shall be set forth as a percentage of the Participant’s base salary in the applicable Appendix to the Plan. Participants are eligible to receive an Annual Award for each Performance Period, subject to deferral of fifty percent (50%) of the Annual Award (the “Deferred Award”) over the Deferral Performance Period.  The amount of the Annual Award may be modified at the Board’s discretion to account for individual performance that is not captured in the Participant’s individual goals, whether positive or negative, by applying an award multiplier to an Award Level (100% being no modification), but in no event shall this result in an Award Level that is less than the Minimum Achievement Level (as defined in Section 3.2(b)(i)) nor an Award Level that is greater than the Maximum Achievement Level (as defined in Section 3.2(b)(iii)).

(c)    Final Award.  The “Final Award” is the amount of an earned and vested Annual Award, Deferred Award, and Gap Year Award, as may be adjusted based upon the level at which the Performance Goals and Qualifiers have been achieved, that is ultimately paid to a Participant under the Plan.  The amount of a Final Award may be modified at the Board’s discretion to account for performance that is not captured in the relevant Performance Goals and Qualifiers for the applicable Award.  The Board, in its discretion, may also consider Extraordinary Occurrences when assessing performance results and determining Final Awards.  “Extraordinary Occurrences” mean those events that, in the opinion and discretion of the Board, 
									
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are outside the significant influence of the Participant or the Bank and are likely to have a significant unanticipated effect, whether positive or negative, on the Bank’s operating and/or financial results.

Section 3.2    Performance Goals and Qualifiers.  “Performance Goals and Qualifiers” are the factors established by the Board for each Performance Period, Deferral Performance Period and Gap Year Performance Period, as set forth in the applicable Appendices to the Plan, which are taken into consideration in determining the amount of an Annual Award, Deferred Award or Gap Year Award.  The Board may adjust the Performance Goals and Qualifiers for a Performance Period, Deferral Performance Period or Gap Year Performance Period to ensure the purposes of the Plan are served.
(a)    Establishment of Performance Goals and Qualifiers.  Performance Goals and Qualifiers for Performance Periods, Deferral Performance Periods and the Gap Year Performance Period commencing on and after January 1, 2017, will be communicated to Participants following approval by the Board.
(b)    Achievement Levels.  Three achievement levels ("Achievement Levels") will be defined for each Performance Goal in determining how much of an Award is earned.
(i)    Minimum.  Minimum level of performance that must be achieved for any awards to be paid.
(ii)    Meets.  Performance that is expected under the Bank’s Plan.
(iii)    Maximum. A most optimistic level of performance that substantially exceeds expected performance.
(c)    Interpolation.  Achievement Levels between the defined percentages for Minimum, Meets and, Maximum will be interpolated in a manner as determined at the sole discretion of the Board.
(d)    Considerations in Establishing Performance Goals and Qualifiers.  In determining appropriate Performance Goals and Qualifiers and the relative weight of each Performance Goal, the Board will:
(i)    Balance risk and financial results in a manner that does not encourage Participants to expose the Bank to imprudent risks;
(ii)    Make such determination in a manner designed to ensure that a Participant’s overall compensation is balanced and not excessive in amount and that the Annual Awards, Deferred Awards and Gap Year Awards are consistent with the Bank’s policies regarding such compensation arrangements; and
(iii)    Monitor the success of the Performance Goals and Qualifiers and weighting established in prior years, alone and in combination with other incentive compensation awarded to the same Participants, and make appropriate adjustments in future calendar years as needed so that payments appropriately incentivize Participants, appropriately reflect risk and align with regulatory guidance.
									
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Section 3.3    Vesting of Awards for Participants.
(a)    Vesting of Annual Awards.  An "Annual Award" is defined as an Award earned for service during a Performance Period. For each Performance Period, except the Gap Performance Period, fifty percent (50%) of an Annual Award to a Participant will become vested on the last day of the Performance Period, provided the Board determines the following requirements are met (“Year-End Award”):
(i)    The applicable Performance Goals and Qualifiers for the Performance Period are achieved;
(ii)    The Participant received a satisfactory (at least meets expectations) performance rating for the Performance Period; and,
(iii)    The Participant is actively employed on the last day of the Performance Period, except as otherwise provided in subsection 3.5(b) or 3.5(c) or Section 3.6.
(b)    Vesting of Deferred Awards.  The remaining fifty percent (50%) of an Annual Award (i.e. Deferred Award) to a Participant will become vested on the last day of the Deferral Performance Period, provided the Board determines that the following requirements are met:
(i)    The applicable Qualifiers for the Deferral Performance Period are satisfied;
(ii)    The Participant received a satisfactory (at least meets expectations) performance rating for the Deferral Performance Period, and
(iii)    The Participant is actively employed on the last day of the Deferral Performance Period, unless otherwise provided in subsection 3.5(b) or 3.5(c) or Section 3.6.
(c)    Calculation of Awards.  The amount of Final Awards to Participants will be determined at the sole discretion of the Board in accordance with the applicable Appendix to the Plan.  If the Qualifiers are achieved, then an annual compounding interest rate of 6% is applied to Deferred Awards; provided, however, the amount of the Final Awards payable in a particular calendar year shall not exceed the Participant’s base salary as of the end of the applicable Performance Period and Deferral Performance Period for the Final Awards payable (“Plan Year Base Salary”).  For the avoidance of doubt, the amount of the Final Awards payable shall mean the amount of: (a) the Year-End Award earned and vested in a particular calendar year; and (b) the Deferred Award that is vested in the same calendar year plus the interest credited to the Deferred Award.  If the amount of the Final Awards payable in a particular calendar year exceeds the Participant’s Plan Year Base Salary, then the amount of the Final Award payable in that particular calendar year shall be reduced so that the amount of the Final Awards payable does not exceed the Participant’s 
									
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Plan Year Base Salary.  For example, if a Participant (1) vests at the end of 2021 in both the Year-End Award for the 2021 Performance Period and the Deferred Award for the 2018 Deferral Performance Period, (2) earns the 6% annual compounding interest applicable to the Deferred Award (all together such Year-End Award, Deferred Award and interest are the “2021 Final Awards” payable in the aggregate in March 2022) and (3) the 2021 Final Awards exceed the Participant’s 2021 Plan Year Base Salary, then the amount payable shall be reduced so that the 2021 Final Awards do not exceed the Participant’s 2021 Plan Year Base Salary.
Section 3.4    Gap Year Awards for Participants.
(a)    Background.  The Board has determined it is appropriate to establish a Gap Year Award for Participants for long-term performance during the calendar years 2017 through 2019 (a “Gap Year Award”) to address a gap in payment of deferred incentive compensation during calendar year 2020 which arises as a result of the discontinuation in 2017 of the Executive Performance Unit Plan (the “Long-Term Incentive Plan”) and the implementation of this Plan.
(b)    Vesting of Gap Year Award.  A Gap Year Award will become vested over a three-year period beginning on January 1, 2017 and ending on December 31, 2019 (the “Gap Year Performance Period”) to the extent the Board determines that:
(i)    The Performance Goals and Qualifiers for the Gap Year Performance Period, as set forth in the applicable Appendix to the Plan, are satisfied;
(ii)    The Participant received a satisfactory (meets expectations) performance rating for the Gap Year Performance Period, and
(iii)    The Participant is actively employed on the last day of the Gap Year Performance Period, except as otherwise provided in subsection 3.5(b) or 3.5(c) or Section 3.6.
(c)    Calculation of Awards.  The amount of Gap Year Awards will be calculated in the sole discretion of the Board in accordance with the applicable Appendix to the Plan.

Section 3.5    Effect of Termination of Employment.
(a)    In General.  If a Participant incurs a Termination of Employment for any reason other than a reason set forth in subsection 3.5(b) or 3.5(c) or Section 3.6, the Participant’s unvested Awards will be forfeited effective as of the date of such Termination of Employment and the Bank will have no obligation to pay the Participant any portion of such forfeited, unvested Award amounts.
									
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(b)    Termination Due to Death or Disability.
(i)    Notwithstanding the provisions of Sections 3.3 and 3.4 and subsection 3.5(a), if a Participant incurs a Termination of Employment due to death or Disability during a Deferral Performance Period, then the Participant’s Deferred Awards will be treated as vested and shall be paid pursuant to Section 3.7(a)(i).
(ii)    Notwithstanding the provisions of Sections 3.3 and 3.4 and subsection 3.5(a), if a Participant incurs a Termination of Employment during a Performance Period or Gap Year Performance Period due to death or Disability, any Annual Award or Gap Year Award which has not been vested for the year of the Participant’s Termination of Employment due to death or Disability, will be treated as vested for the portion of the Performance Period or Gap Year Performance Period during which the Participant was employed based on the assumption the Bank would have achieved the Performance Goals and Qualifiers at the Meets (Target) Achievement Level for the Performance Period or Gap Year Performance Period.
(c)    Termination Due to Other Events.
(i)    Subject to Section 3.7(a)(ii), but notwithstanding the provisions of Sections 3.3 and 3.4 and subsection 3.5(a), if a Participant incurs a Termination of Employment during a Performance Period, Deferral Performance Period or Gap Year Performance Period due to:
(A)    Retirement;
(B)    a termination by Participant for Good Reason;
(C)    a termination by the Bank without Cause due to the elimination of an individual job or position;
(D)    the elimination of one or more jobs or positions as a result of a reduction in force or department reorganization; or
(E)    a substantial job modification resulting in the incumbent being, in the judgment of the Bank, unqualified for or unable to perform the revised job;
then the relevant pro rata portion of an Annual Award or Gap Year Award will be treated as vested for the portion of the Performance Period or Gap Year Performance Period during which the Participant was employed to the extent determined by the Board that the Performance Goals and Qualifiers for the Performance Period or Gap Year Performance Period are satisfied and a Deferred Award will be treated as fully vested as of the date of Termination of Employment.  Any payment of any Award pursuant to this Section 3.5(c) will be made according to the normal scheduled date under Section 3.7(b).
									
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(d)    Definitions.
(i)    “Cause” means (A) continued failure of a Participant to perform his or her duties with the Bank (other than any such failure resulting from Disability), (B) personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or willful violation of any law, rule or regulation (other than -traffic infractions or similar non-violent infractions), or (C) removal of the Participant for cause by the Federal Housing Finance Agency (“FHFA”) or at the direction of the FHFA pursuant to 12 U.S.C. 1422b(a)(2), or by any successor agency to the FHFA pursuant to a similar statute.
(ii)    “Disability” means the Participant is: (A) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (B) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under the Bank’s long-term disability plan.  Medical determination of Disability under (A) shall be made by the Social Security Administration.  The Participants may be required to submit proof of the determination by the Social Security Administration or the Bank’s insurer, as applicable, upon the request of the Bank.
(iii)    “Good Reason” means a Termination of Employment by a Participant under any of the following circumstances:
(A)    a material change in the Participant’s status, position and job title or principal duties and responsibilities as a key employee of the Bank which does not represent a promotion from the Participant’s status and position as in effect as of the date hereof (“Position”);
(B)    the assignment to the Participant of any duties or responsibilities (or removal of any duties or responsibilities), which assignment or removal is materially inconsistent with such Position;
(C)    any removal of the Participant from such Position (including, without limitation, all demotions), except in connection with the termination of the Participant’s employment for Cause or Disability, or as a result of the Participant’s death; or
(D)    any material breach by the Bank of any provisions of this Plan or any agreement under which the Participant provides services to the Bank.

									
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Notwithstanding the foregoing in this Section 3.5(d)(iii), a Participant shall not be considered to have a Termination of Employment for Good Reason unless the Participant provides the Bank with written notice no later than 90 days after the first occurrence of an event listed above and the Bank has a period of 30 days to cure such event.
(iv)    “Reduction in Force” means an involuntary Termination of Employment of a Participant by the Bank in connection with a financial and/or strategic decision by the Bank to reduce the number of Bank employees and not due to the Participant’s performance.
(v)    “Retirement” means the Participant’s planned and voluntary termination of employment on or after the Participant has either: (A) attained age 55 with 10 years of service or (B) attained age 65 with 5 years of service.
(vi)    “Termination of Employment or Terminates Employment” Participant’s separation from service within the meaning of Treasury Regulation Section 1.409A-1(h).  Whether a Termination of Employment has occurred is based on whether the facts and circumstances indicate that the Participant and the Bank reasonably anticipated that no further services would be performed after a certain date.  A Termination of Employment will not be deemed to have occurred if a Participant continues to provide services to the Bank as an employee, independent contractor or otherwise, and if the Participant is providing such services at an annual rate that is fifty percent (50%) or more of the services rendered, on average, during the immediate preceding 36 months with the Bank (or if less, such lesser period); provided, however, that a Termination of Employment will be deemed to have occurred if a Participant’s service with the Bank is reduced to an annual rate that is equal to or less than twenty percent (20%) of the services rendered, on average, during the immediately preceding 36 months with the Bank (or if less, such lesser period).  In addition to the foregoing, the employment of a Participant shall not be deemed to be terminated while the Participant is on military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six (6) months, or if longer, so long as the Participant’s right to reemployment with the Bank is provided by either statute or contract.  If the period of leave exceeds six (6) months and the Participant’s right to reemployment is not provided by either statute or contract, then the Participant is deemed to have a Termination of Employment on the first day immediately following such six-month period.
Section 3.6    Effect of Change in Control.
(a)    Notwithstanding the provisions of Sections 3.3 and 3.5, if a Change in Control of the Bank occurs prior to the date of vesting of an Award, then an Annual Award or Gap Year Award will be paid on a pro-rated basis based on the assumption the Bank would have achieved the Performance Goals and Qualifiers at the Meets (Target) Achievement Level for the Performance Period and/or the Gap Year Performance Period, while any Deferred Award which has not otherwise become vested as of the date of the Change in Control will be treated as one hundred percent (100%) vested effective as of the date of the Change in Control. Any interest accrued on the Deferred Award through the Change in Control date will be added to the Final Award.
									
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(b)    “Change in Control” of the Bank will mean the occurrence at any time of any of the following events:
(i)    The merger, reorganization, or consolidation of the Bank with or into another Federal Home Loan Bank or other entity;
(ii)    The sale or transfer of all or substantially all of the business or assets of the Bank to another Federal Home Loan Bank or other entity;
(iii)    The purchase by the Bank or transfer to the Bank of all or substantially all of the business or assets of another Federal Home Loan Bank; or
(iv)    The liquidation of the Bank.
The term “reorganization” shall not include any reorganization that is mandated by federal statute, rule, regulation, or directive, including 12 U.S.C. § 1421, et seq., as amended, and 12 U.S.C. § 4501 et seq., as amended, and which the Director of the FHFA (or successor agency) has determined should not be a basis for making payment under this Plan, by reason of the capital condition of the Bank or because of unsafe or unsound acts, practices, or condition ascertained in the course of the Agency's supervision of the Bank or because any of the conditions identified in 12 U.S.C. § 4617(a)(3) are met with respect to the Bank (which conditions do not result solely from the mandated reorganization itself, or from action that the Agency has required the Bank to take under 12 U.S.C. § 1431(d)).

Section 3.7    Payment of Awards.
(a)    Payments Related to Termination of Employment.  The following provisions apply to Final Awards payable as a result of a Termination of Employment.
(i)    In the event of a Termination of Employment due to death or Disability, one hundred percent (100%) of a Final Award will be paid in a single sum within 74 days of the date of Termination of Employment.
(ii)    In the event of a Termination of Employment Due to Other Events, payment of a Final Award will be made in a single sum within 74 days following the end of the Performance Period, Deferral Performance Period or Gap Year Performance Period, as applicable.  Notwithstanding the foregoing, in the event of an elimination of an individual job or position, a reduction in force or department reorganization, or a substantial job modification resulting in the incumbent being unqualified for or unable to perform the revised job, a Participant must execute the severance agreement offered by the Bank in order to be eligible to receive payment.
									
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(b)    Payments Not Related to a Termination of Employment.  Final Awards which become vested for reasons other than a Termination of Employment will be paid in a single sum within 74 days following the end of the Performance Period, Deferral Performance Period or Gap Year Performance Period, as applicable.
(c)    Notwithstanding the foregoing provisions of this Section, Final Awards will be paid upon approval by the Board.  However, in the event of a Change in Control, payment of a Final Award will be made in a single sum on the date on which the Change in Control occurs; provided however, if a Participant is eligible for Retirement as of the date of a Change in Control, then the Final Award of such Participant shall be made no sooner than the earliest to occur of (i) a change in the ownership or effective control of the Bank, or in the ownership of a substantial portion of the assets of the Bank, as defined under Treasury Regulation Section 1.409A-3(i)(5); (ii) the Participant’s Termination of Employment; or (iii) the payment date under Section 3.7(b) of this Plan.
Section 3.8    Reduction or Forfeiture of Awards.
(a)    By resolution, the Board may reduce or eliminate any Award not yet paid, if the Board finds that a serious, material safety-soundness problem, or a serious, material risk-management deficiency exists at the Bank, or if: (i) errors or omissions result in material revisions to the Bank’s financial results, information submitted to a regulatory or a reporting agency, or information used to determine incentive compensation payouts; (ii) information submitted to a regulatory or a reporting agency is untimely; or, (iii) the Bank does not make appropriate progress, as determined by the Board, in the timely remediation of examination, monitoring, or other supervisory findings and matters requiring attention.
(b)    If during the Deferral Performance Period actual losses or other measures or aspects of performance related to the Performance Period or Deferral Performance Period are realized which would have caused a reduction in amount of the Final Award calculated for the Performance Period or Deferral Performance Period, then the remaining amount of the Final Award to be paid at the end of the applicable Deferral Performance Period may be reduced to reflect this additional information.
(c)    Notwithstanding any other provision of the Plan, if a Participant breaches the terms of a Non-Solicitation Agreement, all of his/her unpaid vested and unvested Awards may be forfeited as of the effective date of the Board’s determination that such breach has occurred, which effective date shall be no sooner than the expiration of the cure period under Section 3.8(e) below.  Any future payments for a vested Award will cease and the Bank will have no further obligation to make such payments.
(d)    Notwithstanding any other provision of the Plan, if during the most recent examination of the Bank by the FHFA, the FHFA identified an unsafe or unsound practice or condition that is material to the financial operation of the Bank within the Participant’s area(s) of responsibility and such unsafe or unsound practice or condition is not subsequently resolved to the satisfaction of the Board, then upon expiration of the cure period under Section 3.8(e) below all or a portion of a 
									
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Participant’s vested and unvested Awards may be forfeited as determined in the sole discretion of the Board.  Any future payments for a vested Award will cease and the Bank will have no further obligation to make such payments.
(e)    Notwithstanding any provision of this Section 3.8 to the contrary, prior to any reduction, elimination or forfeiture of any Participant Award, the applicable Participant shall be given notice of the determination under this Section 3.8 to reduce, eliminate or forfeit the Award and such Participant shall have a period of no less than 30 days to present information contrary to such decision or information showing that the issue or event causing the reduction, elimination or forfeiture has been cured to the satisfaction of the Board.
ARTICLE IV
ADMINISTRATION
Section 4.1    Appointment of the President and CEO.  Except for those powers expressly reserved to the Board, including determinations regarding eligibility and the amount of all Awards, under the Plan, the President and CEO, or a duly authorized officer of the Bank delegated by the President and CEO to act on his or her behalf, is hereby appointed to administer the Plan (the “Administrator”), and the President and the Administrator will be charged with the full power and the responsibility for administering the Plan in all its details.
Section 4.2    Powers and Responsibilities of the Administrator.  The Administrator will have all powers necessary to administer the Plan, including the power to construe and interpret the Plan document; to determine the manner and timing of any distribution of benefits under the Plan; to resolve any claim for benefits in accordance with Article V, and to appoint or engage advisors, including legal counsel, to render advice with respect to any of the Administrator’s responsibilities under the Plan.  Any construction, interpretation, or application of the Plan by the Administrator will be final, conclusive and binding.
(a)    Records and Reports.  The Bank will be responsible for maintaining sufficient records to determine each Participant’s eligibility to participate in the Plan.
(b)    Rules and Decisions.  The Bank may adopt such rules as it deems necessary, desirable, or appropriate in the administration of the Plan.  All rules and decisions of the Bank will be applied uniformly and consistently to all Participants in similar circumstances.  When making a determination or calculation, the Board and the Bank will be entitled to rely upon information furnished by a Participant, the Bank or the legal counsel of the Bank.
(c)    Application for Benefits.  The Bank may require a Participant to complete and file with it an application for a benefit, and to furnish all pertinent information requested by it.  The Bank may rely upon all such information so furnished to it, including the Participant’s current mailing address.  Any notice or document required to be given or filed with the Bank will 
									
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be properly given or filed if delivered to or mailed by registered mail, postage paid, to the Director of Human Resources, Federal Home Loan Bank of San Francisco, P.O. Box 7948, San Francisco, CA 94108.
Section 4.3    Income and Employment Tax Withholding.  The Bank will withhold from payments to Participants of their Awards, to the extent required by law, all applicable federal, state, city and local taxes.
Section 4.4    Plan Expenses.  The expenses incurred for the administration and maintenance of the Plan will be paid by the Bank.
ARTICLE V
BENEFIT CLAIMS
While a Participant need not file a claim to receive his or her Award under the Plan, if he/she wishes to do so, a claim must be made in writing and filed with the Administrator (a claim by the President and CEO shall be filed with the Board).  If a claim is denied, the Administrator will furnish the claimant with written notice of its decision.  A claimant may request a full and fair review of the denial of a claim for awards by filing a written request with the Administrator.
ARTICLE VI
AMENDMENT AND TERMINATION OF THE PLAN
Section 6.1    Amendment of the Plan.  The Bank, acting through the Board, may amend the Plan at any time in its sole discretion.  Notwithstanding the foregoing, the Bank may not amend the Plan to reduce a Participant’s vested Award as determined on the day preceding the effective date of the amendment or to otherwise retroactively impair or adversely affect the rights of a Participant.
Section 6.2    Termination of the Plan.  The Bank, acting through the Board, may terminate the Plan at any time in its sole discretion.  Absent an amendment to the contrary, Plan benefits that were earned and vested prior to the termination will be paid at the times and in the manner provided for by the Plan at the time of the termination.
ARTICLE VII
MISCELLANEOUS
Section 7.1    Governing Law.  Except to the extent superseded by laws of the United States, the laws of California will be controlling in all matters relating to the Plan without regard to the choice of law principles therein.  The Plan shall be construed in a manner that is consistent and compliant with, or exempt from, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and any regulations promulgated thereunder.  Any provision that is noncompliant with Section 409A 
									
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	12

of the Code is void or deemed amended to comply with Section 409A of the Code.  The Plan is to be construed as a totally discretionary plan.  This Plan shall be administered and interpreted to maximize the short-term deferral exemption to Code Section 409A, and a Participant shall not, directly or indirectly, designate the taxable year of an award payment under this Plan.  The portion of any payment under this Plan that is paid within the short-term deferral period (within the meaning of Code Section 409A) shall be treated as a short-term deferral and not aggregated with other payments.  To the extent applicable, any payment dates or events provided for in this Plan shall be deemed to incorporate any “grace periods” within the meaning of Code Section 409A.  The Bank does not guarantee or warrant the tax consequences of the Plan, and the Participants shall in all cases be liable for any taxes due with respect to the Plan.
Section 7.2    Headings and Gender. The headings and subheadings in the Plan have been inserted for convenience of reference only and will not affect the construction of the Plan provisions.  In any necessary construction, the masculine will include the feminine and the singular the plural, and vice versa.
Section 7.3    Spendthrift Clause.  No benefit or interest available under the Plan will be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or attachment by creditors of a Participant, either voluntarily or involuntarily.
Section 7.4    Counterparts.  This Plan may be executed in any number of counterparts, each one constituting but one and the same instrument, and may be sufficiently evidenced by any one counterpart.
Section 7.5    No Enlargement of Employment Rights.  Nothing contained in the Plan is intended to alter a Participant’s “at will” employment and is not to be construed as a contract of employment between the Bank and any person, nor may the Plan be deemed to give any person the right to be retained in the employ of the Bank or limit the right of the Bank to employ or discharge any person with or without cause.
Section 7.6    Limitations on Liability.  The individual members of the Board will, in accordance with the Bank’s by-laws, be indemnified and held harmless by the Bank with respect to any alleged breach of responsibilities performed or to be performed hereunder.  In addition, notwithstanding any other provision of the Plan, neither the Bank nor any individual acting as an employee or agent of the Bank will be liable to a Participant for any claim, loss, liability or expense incurred in connection with the Plan, except when the same has been affirmatively determined by a court order or by the affirmative and binding determination of an arbitrator, to be due to the gross negligence or willful misconduct of that person.
Section 7.7    Incapacity of Participant.  If any person entitled to receive a distribution under the Plan is physically or mentally incapable of personally receiving and giving a valid receipt for any payment due (unless a prior claim for the distribution has been made by a duly qualified guardian or other legal representative), then, unless and until a claim for the distribution has been made by a duly appointed guardian or other legal representative of the person, the distribution may be made to any other individual or institution then contributing toward or providing for the care and maintenance of the person.  
									
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Any payment made for the benefit of the person under this Section will be a payment for the account of such person and a complete discharge of any liability of the Bank and the Plan.
Section 7.8    Evidence.  Evidence required of anyone under the Plan may be by certificate, affidavit, document or other information which the person relying on the evidence considers pertinent and reliable, and signed, made or presented by the proper party or parties.
Section 7.9    Action by Bank.  Any action required of or permitted by the Bank under the Plan will be by resolution of the Board or by a person or persons authorized by resolution of the Board.
Section 7.10    Severability.  In the event any provisions of the Plan are held to be illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and endorsed as if the illegal or invalid provisions had never been contained in the Plan.
Section 7.11    Information to be Furnished by a Participant.  A Participant, or any other person entitled to benefits under the Plan, must furnish the Bank with any and all documents, evidence, data or other information the Bank considers necessary or desirable for the purpose of overseeing and administering the Plan.  Benefit payments under the Plan are conditioned on a Participant (or other person who is entitled to benefits) furnishing full, true and complete data, evidence or other information to the Bank, and on the prompt execution of any document reasonably related to the administration of the Plan requested by the Bank.
Section 7.12    Attorneys’ Fees.  If any action is commenced to enforce the provisions of the Plan, payment of attorneys’ fees will be governed by the terms set forth in the “Agreement to Arbitrate” entered into between the Bank and the Participant.
Section 7.13    Binding on Successors.  The Plan will be binding upon and inure to the benefit of the Bank and its successors and assigns, and the successors, assigns, designees and estates of a Participant.  The Plan will also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of the Bank, but nothing in the Plan will preclude the Bank from merging or consolidating into or with, or transferring all or substantially all of its assets to, another organization which assumes the Plan and all obligations of the Bank hereunder.  The Bank agrees that it will make appropriate provision for the preservation of a Participant’s rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation, reorganization or transfer of assets.  Upon such a merger, consolidation, reorganization or transfer of assets and assumption of Plan obligations of the Bank, the term “Bank” will refer to such other organization and the Plan will continue in full force and effect.

									
	Approved 5/28/2021	

	14

																								
	APPENDIX I

2017 PERFORMANCE PERIOD GOALS & QUALIFIERS & AWARDS SCALE/AWARDS
	2017 Goals	2017 Goal Components	Goal Weight	Goal Component Weight	2017 Goal Measures
	1) RISK MANAGEMENT		20%		In the event of a Significant Deficiency or Material Weakness in internal control over financial reporting, a significant operations loss, or a significant noncompliance with Bank policy as described in the Bank’s Risk Management Policy, the Board of Directors will assess the impact and appropriate adjustment to the Risk Management goal achievement level, if any.
		A) Technology Resiliency		50%	  75%:  Complete the End User Computing Modernization initiative, which moves 
            Microsoft Windows and Office platforms to the cloud (Office 365) to increase
            resiliency as well as productivity
100%:  Certify that the build of the data center infrastructure servicing the Bank has been
             completed
125%:  Migrate 50% of the Bank’s environment to the new data center
150%:  Migrate 100% of the Bank’s environment to the new data center

	

	B) Business Continuity /
     Crisis Management		50%	  75%: 1 Crisis Mgmt. Team Tabletop (1 external threat scenario) 
100%: 2 Crisis Mgmt. Team Tabletops (1 Cyber & 1 external threat scenario) 
125%: 3 Crisis Mgmt. Team Tabletops (1 Cyber & 2 external threats) and 1 Cyber 
            Incident Response Team Tabletop scenario                                           
150%: 3 Crisis Mgmt. Team Tabletops (1 Cyber & 2 external threats) and 2 Cyber
            Incident Response Team Tabletop scenarios            
	2) FRANCHISE ENHANCEMENT		40%		
		A) Financial Performance		25%	Adjusted Return on Capital Spread (AROC)
			75%	100%	125%	150%
			2.81%	3.06%	3.31%	3.56%
			[Achievement level targets and measured performance exclude OTTI charges]

	

	B) Operating Cost
     Efficiency Initiative
		25%	  75%:  
100%:                
125%:                
150%:           	} Subjective assessment by the Board of Directors

		C) Member Business 		25%	Member Advances and Letters of Credit (LC) Volume

	Average Outstanding Daily Balance ($Bils.)

	75%	100%	125%	150%
	$53.7	$60.0	$62.0	$64.0
	
25%	Member Engagement
				75%	100%	125%	150%
				40%	45%	50%	55%
	3) COMMUNITY INVESTMENT		20%		
		A) CIP/ACE/HPA
     Advances, Letters of
     Credit & AHEAD
      (# of Members)
		
100%
	(# of Members)
	75%	100%	125%	150%
	38	41	44	47
	4) ORG. HEALTH / DIVERSITY & INCLUSION		20%		
		A) Diversity &
     Inclusion		100%	  75%:  Provide two (semi-annual) Bank-wide D&I training events [e.g., workplace,
            supplier/contracting diversity]   
100%:  Develop and implement a formal supplier diversity program
125%:  Present Leadership Series for key groups of women and minorities in Bank leadership
             positions
•    Women in Leadership Series and Minorities in Leadership Series
           Provide 2 events in each series for a total of 4 events
150%: Develop and implement a formal MWD internship program

									
	Approved 12/23/16	1

2017 Performance Period Goals, Qualifiers & Awards Scale (cont'd)

Incentive Award Opportunities 
																																							
		Total Incentive Award as % of Compensation (Base Salary)
	Year-End Incentive Award as % of Compensation (Base Salary)
	Deferred Incentive Award as % of Compensation (Base Salary)

		Threshold	Meets (Target)	Exceeds	Far Exceeds	Threshold	Meets (Target)	Exceeds	Far Exceeds	Threshold	Meets (Target)	Exceeds	Far Exceeds
	CEO/EVP/SVPs
	40%	80%	96%	100%	20%	40%	48%	50%	20%	40%	48%	50%

Goal Weights
															
		CEO/EVP/SVPs	SVP, Chief Risk Officer
		Corporate Goal Weights	Goal Weight (includes individual goals)	Corporate Goal Weights	Goal Weight (includes individual goals)
	Individual	N/A	10.0%	N/A	10.0%
	Risk Management	20.0%	18.0%	50.0%	45.0%
	Franchise Enhancement	40.0%	36.0%	30.0%	27.0%
	Community Investment	20.0%	18.0%	10.0%	9.0%
	Organizational Health / Diversity and Inclusion	20.0%	18.0%	10.0%	9.0%
	Total	100.0%	100.0%	100.0%	100.0%

Qualifiers
The following are the performance qualifiers for any Award: (i) no submission of material information to a regulatory or a reporting agency is significantly past due; (ii) the Bank makes sufficient progress, as determined by the Board, in the timely remediation of significant examination, monitoring and other supervisory findings; (iii) no material risk-management deficiency exists at the Bank; (iv) no operational errors or omissions result in material revisions to the financial results, information submitted to the FHFA, or data used to determine incentive payouts; (v) the Bank has sufficient capital to pay dividends and the ability to repurchase member stock.

									
	Approved 12/23/16	2

APPENDIX II 
AWARDS AND GOALS APPLICABLE TO 2020 GAP YEAR (2017-2019 LTIP)
Incentive Award Opportunities
															
		
Long-Term Incentive Award as a % of Compensation (Base Salary effective February 1, 2017)
	Position	Threshold	Meets (Target)	Exceeds	Far Exceeds
	
CEO/EVP/SVPs	20%	40%	48%	
50%

Awards are based on the level at which the following three-year performance goals and metrics have been achieved. 
Goals
1.3-Year Average Adjusted Return on Capital Spread: Adjusted Return on Capital Spread (AROCS) is the primary measure the Bank uses to determine total rate of return to shareholders. The Meets (Target) AROCS achievement level has been set at 2.43% and represents the projected average for the performance period (January 1, 2017 through December 31, 2019) and is consistent with the Bank’s Strategic Plan forecast.  Threshold AROCS has been set at 2.18%, Exceeds achievement level has been set at 2.68% and Far Exceeds achievement level has been set at 2.93%.
2.3-Year Average Risk Management: Risk Management is based on the 3-year average of the actual Risk Management goal achievement levels for 2017, 2018, and 2019, and will be set at the end of the performance period.
Goals / Weights / Measures
																		
	Goals	Goal Weight	Threshold	Meets (Target)	Exceeds	Far Exceeds
	AROCS Goal (3-Year Average Spread Over Benchmark 
	30%	2.18%	2.43%	2.68%	2.93%
	Risk Management
	70%	Based on the 3-year average of the actual Risk Management goal achievement levels for 2017, 2018, and 2019

									
	Approved 12/23/16	3

APPENDIX III
FORM OF NON-SOLICITATION AND NON-DISCLOSURE AGREEMENT
This Agreement is entered into as of the ____ day of _____________, 201_, by and between the FEDERAL HOME LOAN BANK OF SAN FRANCISCO, a corporation organized under the laws of the United States (the “Bank”) and ____________________ (the “Executive”).
WHEREAS, the Bank sponsors the Federal Home Loan Bank of San Francisco Executive Incentive Plan (the “Plan”); and
WHEREAS, as a condition of participation in the Plan, the Bank requires that the Executive agree to the terms and conditions found within this Agreement;
NOW, THEREFORE, in consideration of the premises and of the mutual promises and agreements contained herein and other good and valuable consideration, the receipt, legal adequacy and sufficiency of which are hereby acknowledged, the parties agree as follows:
1.    Non-Disclosure; Return of Confidential Information and Other Property.
(a)    Access to Confidential Information.  The Executive understands, acknowledges and agrees that during the course of his or her employment with the Bank he or she has gained or will gain information regarding, knowledge of, and familiarity with, the Confidential Information of the Bank (as defined in subsection (c)) that would cause irreparable damage and harm to the Bank if it was disclosed.  The Executive understands, acknowledges and agrees that the Confidential Information has substantial economic value because it is not known or readily ascertainable by proper means by others who could obtain economic value from it.  The Executive also acknowledges and agrees that the Bank uses reasonable means to maintain the secrecy and confidentiality of the Confidential Information.
(b)    Non-Disclosure.  At all times while the Executive is employed by the Bank, and at all times thereafter, the Executive will not (i) directly or indirectly disclose, provide or discuss any Confidential Information with or to any Person (as defined in subsection (d)) other than those directors, officers, employees, representatives and agents of the Bank who need to know such Confidential Information for a proper corporate purpose, and (ii) directly or indirectly use any Confidential Information (A) to compete against the Bank, or (B) for the Executive’s own benefit, or for the benefit of any Person other than the Bank.
(c)    Confidential Information Defined.  For purposes of this Agreement, the term “Confidential Information” means any and all:
(i)    materials, records, data, documents, lists, writings and information (in each case, whether in writing, printed, verbal, electronic, computerized or otherwise) (A) relating or referring in any manner to the business, operations, affairs, financial condition, results of operation, cash flow, assets, liabilities, sales, revenues, income, estimates, projections, policies, strategies, techniques, methods, products, developments, suppliers, regulators, members, relationships and/or customers of the Bank that are confidential, proprietary or not otherwise publicly available, in any event not without a breach of this Agreement, or (B) that the Bank has 
									
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	1

deemed confidential, proprietary, nonpublic or not otherwise publicly available without breaching this Agreement;
(ii)    trade secrets of the Bank, as defined in California Civil Code Section 3426.1(d), as amended, or any successor statute; and
(iii)    any and all copies, summaries, analyses and extracts which relate or refer to or reflect any of the items set forth in (i) or (ii) above.  The Executive agrees that all Confidential Information is confidential and is and at all times will remain the property of the Bank.
(d)    Person Defined.  For purposes of this Agreement, the term “Person” will mean any natural person, proprietorship, partnership, corporation, limited liability company, bank, organization, firm, business, joint venture, association, trust or other entity and any government agency, body or authority.
(e)    Return of Confidential Information and Other Property.  The Executive covenants and agrees:
(i)    to keep all Confidential Information subject to the Bank’s custody and control and to promptly return to the Bank all Confidential Information that is still in the Executive’s possession or control at the termination of the Executive’s employment with the Bank; and
(ii)    promptly upon termination of the Executive’s employment with the Bank, to return to the Bank, at the Bank’s principal office, all vehicles, equipment, computers, credit cards and other property of the Bank and to cease using any of the foregoing.
(f)    Exceptions from Confidentiality Obligations.  Section 1 shall not be deemed to prevent the Executive from making disclosures required or made permissible by applicable statute or regulation. Section 1 shall also not be deemed to prevent the Executive from making disclosure required by agency or court order, to the extent that prior to disclosure, the Executive provides the Bank with timely written notice of order , to the extent such prior notice is not prohibited, so as to allow the Bank to contest the order.
2.    Non-Disparagement.  The Executive agrees to not communicate disparaging remarks to third parties about the Bank, its directors, officers or employees.  Likewise, the Bank agrees not to disparage the Executive or his or her skills or job performance to third parties.  However, nothing in this paragraph shall prohibit the Bank or the Executive from testifying truthfully under oath.  In addition, Section 2 shall not be deemed to prevent the Executive from making disclosures required or made permissible by applicable statute or regulation. Section 2 shall also not be deemed to prevent the Executive from making disclosure required by agency or court order, to the extent that prior to disclosure, the Executive provides the Bank with timely written notice of order, to the extent such prior notice is not prohibited, so as to allow the Bank to contest the order.
3.    Non-Solicitation.  The Executive hereby understands, acknowledges and agrees that, by virtue of his or her position with the Bank, the Executive has and will have advantageous familiarity and personal contacts with the employees of the Bank and has and will have advantageous familiarity with the business, operations and affairs of the Bank.  In addition, the Executive understands, acknowledges and agrees that the business of the Bank is highly competitive.  Accordingly, at all times while the Executive is employed by the Bank and for a twelve-month period following termination of employment, the Executive will not, directly or indirectly, or individually or together with any other Person, as owner, shareholder, investor, member, partner, 
									
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	2

proprietor, principal, director, officer, Executive, manager, agent, representative, independent contractor, consultant or otherwise induce, request or attempt to influence any Bank employee who was employed by the Bank during the twelve-month period prior to termination of employment, to terminate his or her employment with the Bank.  
4.    Periods of Noncompliance and Reasonableness of Periods.  The restrictions and covenants contained in Section 3 will not run during all periods of noncompliance and will apply during the Term of this Agreement and for the full periods specified in Section 3.  The Bank and the Executive understand, acknowledge and agree that the restrictions and covenants contained in Section 3 are reasonable in view of the nature of the business in which the Bank is engaged, the Executive’s position with the Bank and the Executive’s advantageous knowledge and familiarity with, the Bank’s employees, business, operations, affairs and customers.
The Bank’s obligation to pay an award to the Executive pursuant to the Federal Home Loan Bank of San Francisco Incentive Plan will immediately terminate in the event the Executive breaches any of the provisions of Section 1 or 3 and all outstanding awards will be forfeited.  Notwithstanding the foregoing:
(a)    the Executive’s covenants set forth in Sections 1 or 3 will continue in full force and effect and be binding upon the Executive;
(b)    the Bank will be entitled to the remedies specified in Section 6; and
(c)    the Bank will be entitled to its damages, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) resulting from or relating to the successful prosecution of the Executive’s breach of any of the provisions of Section 1 or 3.
5.    Survival of Certain Provisions.  Upon any termination of the Executive’s employment with the Bank, the Executive and the Bank hereby expressly agree that the provisions of Sections 1, 3, 4 and 6 will continue to be in full force and effect and binding upon the Executive and the Bank in accordance with the applicable respective provisions of such Sections.
6.    Remedies.  The Executive agrees that the Bank will suffer irreparable damage and injury and will not have an adequate remedy at law in the event of any actual, threatened or attempted breach by the Executive of any provision of Section 1 or 3.  Accordingly, in the event of a threatened, attempted or actual breach by the Executive of any provision of Section 1 or 3, in addition to all other remedies to which the Bank is entitled at law, in equity or otherwise, the Bank may be entitled to a temporary restraining order and a permanent injunction or a decree of specific performance of any provision of Section 1 or 3.  The foregoing remedies will not be deemed to be the exclusive rights or remedies of the Bank for any breach of or noncompliance with this Agreement by the Executive but will be in addition to all other rights and remedies available to the Bank at law, in equity or otherwise.
7.    Severability.  In case any one or more of the provisions (or any portion thereof) contained herein will, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision of this Agreement, but this Agreement will be construed as if such invalid, illegal or unenforceable provision or provisions (or portion thereof) had never been contained herein.  If any provision of this Agreement will be determined by a court of competent jurisdiction to be unenforceable because of the provision’s scope, duration or other factor, then such provision will be considered 
									
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	3

divisible and the court making such determination will have the power to reduce or limit (but not increase or make greater) such scope, duration or other factor or to reform (but not increase or make greater) such provision to make it enforceable to the maximum extent permitted by law, and such provision will then be enforceable against the appropriate party hereto in its reformed, reduced or limited form; provided, however, that a provision will be enforceable in its reformed, reduced or limited form only in the particular jurisdiction in which a court of competent jurisdiction makes such determination.
8.    Entire Agreement.  This Agreement sets forth the entire understanding of the parties hereto with respect to its subject matter, merges and supersedes all prior and contemporaneous understandings with respect to its subject matter, and may not be waived or modified, in whole or in part, except in writing signed by each of the parties hereto.  No waiver of any provision of this Agreement in any instance will be deemed to be a waiver of the same or any other provision in any other instance.  The recitals set forth above are incorporated herein by this reference.
9.    Effect and Modification.  No statement or promise, except as set forth herein, has been made with respect to the subject matter of this Agreement. No modification or amendment will be effective unless in writing and signed by the Executive and an officer of the Bank (other than the Executive).
10.    Non-Waiver.  The Bank’s or the Executive’s failure or refusal to enforce all or any part of, or the Bank’s or the Executive’s waiver of any breach of this Agreement, will not be a waiver of the Bank’s or the Executive’s continuing or subsequent rights under this Agreement, nor will such failure or refusal or waiver have any effect on the subsequent enforceability of this Agreement.
11.    Non-Assignability.  This Agreement contemplates that the Executive will personally provide the services described herein, and accordingly, the Executive may not assign the Executive’s rights or obligations hereunder, whether by operation of law or otherwise, in whole or in part, without the prior written consent of the Bank.
12.    Notice.  Any notice, request, instruction or other document to be given hereunder to any party will be in writing and delivered by hand, telegram, registered or certified United States mail return receipt requested, or other form of receipted delivery, with all expenses of delivery prepaid, as follows:
						
	If to the Executive	
		
		
		
		
		
	If to the Bank	
		Federal Home Loan Bank of San Francisco
		c/o General Counsel and Corporate Secretary
		P.O. Box 7948
		San Francisco, CA 94120

13.    Governing Law.  This Agreement is being delivered in and will be governed by the laws of the State of California without regard to the choice of law principles thereof.  Any dispute regarding this Agreement 
									
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will be brought in any California state or federal court having jurisdiction in the matter and the Executive expressly consents to the jurisdiction of such courts.
14.    Prior Agreements.  The Executive represents and warrants to the Bank that the Executive is not a party to or otherwise bound by any agreement that would restrict in any way the performance by the Executive of the Executive’s duties, services and obligations under this Agreement, that the Executive has disclosed to the Bank all employment type agreements to which the Executive has been bound, including without limitation employment agreements, consulting agreements, non-compete agreements or covenants, confidentiality or non-disclosure agreements or covenants, and intellectual property assignment agreements, and that the Bank will not have any liability to any third party arising out of the Executive entering into this Agreement or performing hereunder.
15.    Effect of Headings.  The descriptive headings of the Sections and, where applicable, subsections, of this Agreement are inserted for convenience and identification only and do not constitute a part of this Agreement for purposes of interpretation.
16.    Counterparts.  This Agreement may be executed in two or more counterparts, each of which will be deemed an original, but all of which collectively will constitute one and the same instrument.
17.    Miscellaneous.  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Plan.

IN WITNESS WHEREOF, the Bank, by its officer thereunder duly authorized, and the Executive, have caused this Non-Solicitation and Non-Disclosure Agreement to be executed as of the day and year first above written.
												
	FEDERAL HOME LOAN BANK
		
	OF SAN FRANCISCO
		EXECUTIVE

				
	By:			
				
	Its:			
				
	By:			
				
	Its:			

									
	Approved 12/23/16	

	5

																								
	

APPENDIX IV

2018 Performance Period Goals, Qualifiers, and Awards Scale

	2018 Goals	2018 Goal Components	Goal Weight	Goal Component Weight	2018 Goal Measures
	1) Risk Management	20%		In the event of a significant deficiency or material weakness in internal control over financial reporting, a significant operational loss, or a significant noncompliance with Bank policy as described in the Bank’s Risk Management Policy, the Board of Directors will assess the impact and will make appropriate adjustments to the Risk Management goal achievement level.
		Cyber-security Threat Management		100%	  75%:  Enhance cyber-security threat metrics
100%:  Threshold plus conduct one internal and one external cyber-security threat table top exercise
125%:  Meets plus operationalize system hardening
150%:  Exceeds plus meet SLA for critical vulnerabilities with public exploits, and reduce backlog of critical vulnerabilities by 80%

	2) Franchise Enhancement	40%		
		A) Financial Performance		25%	Adjusted Return on Capital Spread
	75%	100%	125%	150%
	2.13%	2.43%	2.73%	3.03%
		B) Operating Expense Efficiency		25%	Actual 2018 Core Operating Expenses ($Mils.)
	75%	100%	125%	150%
	$128.4	$127.4	$126.4	$125.4
		C) Advances and Letters of Credit		25%	Member Advances and Letters of Credit (Average Daily Balance ($Bils.)
	75%	100%	125%	150%
	$69.1	$77.5	$80.0	$82.5
		D) Member Engagement (RMS and Specialists - Total)
		12.5%	Count
	75%	100%	125%	150%
	132	149	165	182
	(Specialists-15% of Total)	12.5%	20	22	25	27
	3) Community Investment	20%		
		CIP/ACE/HPA Advances, Letters of Credit, & AHEAD		
100%
	Number of Members
	75%	100%	125%	150%
	39	47	50	55
	4) Diversity & Inclusion	20%		
		Diversity and Inclusion Strategic Plan		100%	  75%:  Develop 2018-2020 Diversity and Inclusion (D&I Strategic Plan)
100%:  Threshold plus target (100%) level of achievement against D&I initiatives
125%:  Meets plus Exceed level of achievement against D&I initiatives
150%:  Exceeds plus deliver Capital markets hosted outreach seminar for diverse broker/dealers and complete one diverse supplier incubator partnership

									
	Approved 12/1/17		1

2018 Performance Period Goals, Qualifiers & Awards Scale (cont'd)
Incentive Award Opportunities 
																																							
		Total Incentive Award as % of Compensation (Base Salary)
	Year-End Incentive Award as % of Compensation (Base Salary)
	Deferred Incentive Award as % of Compensation (Base Salary)

		Threshold	Meets (Target)	Exceeds	Far Exceeds	Threshold	Meets (Target)	Exceeds	Far Exceeds	Threshold	Meets (Target)	Exceeds	Far Exceeds
	CEO/EVP/SVPs
	40%	80%	96%	100%	20%	40%	48%	50%	20%	40%	48%	50%

Goal Weights
															
		CEO/SVPs	SVP, Chief Risk Officer
		Corporate Goal Weights	Goal Weight (includes individual goals)	Corporate Goal Weights	Goal Weight (includes individual goals)
	Individual	N/A	20.0%*	N/A	20.0%*
	Risk Management	20.0%	16.0%	50.0%	40.0%
	Franchise Enhancement	40.0%	32.0%	25.0%	20.0%
	Community Investment	20.0%	16.0%	10.0%	8.0%
	Diversity and Inclusion	20.0%	16.0%	15.0%	12.0%
	Total	100.0%	100.0%	100.0%	100.0%

Qualifiers
The following are the performance qualifiers for any Award: (i) no submission of material information to a regulatory or a reporting agency is significantly past due; (ii) the Bank makes sufficient progress, as determined by the Board, in the timely remediation of significant examination, monitoring and other supervisory findings; (iii) no material risk-management deficiency exists at the Bank; (iv) no operational errors or omissions result in material revisions to the financial results, information submitted to the FHFA, or data used to determine incentive payouts; (v) the Bank has sufficient capital to pay dividends and the ability to repurchase member stock.
* In support of the 20 percent goal weights, management is developing individual goal descriptions and quantifying measures for EIP participants, which will be presented to the Board for review and approval in January 2018, subject to Finance Agency review.
									
	Approved 12/1/17		2

APPENDIX V

2019 Performance Period Goals, Qualifiers & Awards Scale																								
	2019 Goals	2019 Goal Components	Goal Weight	Goal Component Weight	2019 Goal Measures (Revised and Approved 1/25/19)

	1) Risk Management	20%		In the event of a significant deficiency or material weakness in internal control over financial reporting, a significant operational loss, or a significant noncompliance with Bank policy as described in the Bank’s Risk Management Policy, the Board of Directors will assess the impact and will make appropriate adjustments to the Risk Management goal achievement level.
		A) Cyber-Security Threat Management 
(Revised and Approved 1/25/19)
			Threshold (75%): Enhance standard cyber security awareness program to include at least four (4) topical sessions for users that address current security trends and threats.
		50%	Meets (100%): Threshold Plus Define/implement methodology for identifying/documenting negative operational trends that require escalation and remediation. Further mature security posture, establish an all IT standard, adopt innovative techniques of machine learning, and advance incident response plan.
			Exceeds (125%): Meets Plus Operational security compliance management enhancements. Disposition of all outstanding compliance gaps (as of 1/1/19) such that each item has a documented action plan with a reasonable target date, a risk acceptance request, or a waiver.
			Far Exceeds (150%): Exceeds Plus Business Continuity. After completion of refresh of the bank-wide Business Impact Analysis and Business Continuity Plan, the next level of enhancement is to design and implement integrated testing of applications and servers.

	B) Risk Management Practices and Credit Underwriting 		50%	Threshold: Expand the Governance-Risk-Control ("GRC") tool to manage bank-wide policies.
		Meets: Threshold Plus Implement prepay/default model (QRM) for market risk analytics.
		Exceeds: Meets Plus Transition the OTTI PLRMBS model validation to in-house.
		Far Exceeds: Exceeds plus Refresh credit and collateral framework.
	2) Franchise Enhancement	40%		
		A) Financial
Performance		40%	Adjusted Return on Capital Spread
		75%	100%	125%	150%
		1.70%	2.00%	2.30%	2.60%
	B) Bank-wide Prioritization and Process Improvement		10%	Threshold: Bank-wide prioritization process implemented, voting members meet a minimum of six times and lean change agents trained on the pitch process.
		Meets: Threshold Plus Lean change agents trained in Lean Foundations. One cross-bank end to end process analyzed, mapped, and evaluated under lean framework. Corresponding cross team brainstorming and problem-solving event held to deliver improvements.
		Exceeds: Meets Plus Additional set of Bank team members trained (Pitch or Lean Foundations) and a second brainstorming and problem-solving event held to deliver improvements.
		Far Exceeds: Exceeds Plus Each business unit (defined by ELT level) delivers on quantifiable process improvement.
	C) Advances and Letters of Credit		25%	Member Advances and Letters of Credit (Average Daily Balance ($Bils.)
		75%	100%	125%	150%
		$76.5	$85.0	$87.5	$90.0
	D) Member Engagement
 - RMS and Specialists - Total		12.5%	Number of Engagements
		75%	100%	125%	150%
		99	110	116	122
	- Member Engagement Events		12.5%	10	12	14	16

									
	Approved 12/7/18		Page 1

2019 Performance Period Goals, Qualifiers & Awards Scale (cont'd)

																								
	2019 Goals	2019 Goal Components	Goal Weight	Goal Component Weight	2019 Goal Measures (Revised and Approved 1/25/19)

	3) Community Investment	20%		
		CIP/ACE Advances, Letters of Credit, & AHEAD		
100%
	Number of Members
	75%	100%	125%	150%
	42	47	50	55
	4) Diversity & Inclusion	20%		
		Implement: 2019 D&I Strategic Initiatives, Supplier Diversity Training and Program Enhancement, Value Differences Training, and Increase Diverse Dealer Utilization.		100%	Threshold: Implement 2019 D&I Strategic Initiatives as approved by the Board of Directors within the 2018-2020 D&I Strategic Plan.
	Meets: Threshold plus the Supplier Diversity program to conduct business unit level training, develop diverse supplier scorecards and set quarterly diverse spend targets, resulting in 15%-20% diverse spend.
	Exceeds: Target plus Human Resources to provide leadership competency training, includes Values Differences competency, for at least 75% of employees.
	Far Exceeds: Exceeds plus Capital Markets to increase diverse dealer utilization to 75% with the Bank's current sixteen (16) approved MWI firms.

Incentive Award Opportunities
																																																			
		Total Incentive Award as % of Compensation (Base Salary)
	Year-End Incentive Award as % of Compensation (Base Salary)
	Deferred Incentive Award as % of Compensation (Base Salary)

	Title	Threshold	Meets (Target)	Exceeds	Far Exceeds	Threshold	Meets (Target)	Exceeds	Far Exceeds	Threshold	Meets (Target)	Exceeds	Far Exceeds
	CEO/
EVP/
SVP	40%	80%	96%	100%	20%	40%	48%	50%	20%	40%	48%	50%

Goal Weights
															
		CEO/EVP/SVP	SVP, Chief Risk Officer
		Corporate Goal Weights	Goal Weight
(incl. individual goals)	Corporate Goal Weights	Goal Weight 
(incl. individual goals)
	Individual	N/A	20.0%	N/A	20.0%
	Risk Management	20.0%	16.0%	50.0%	40.0%
	Franchise Enhancement	40.0%	32.0%	25.0%	20.0%
	Community Investment	20.0%	16.0%	10.0%	8.0%
	Diversity and Inclusion	20.0%	16.0%	15.0%	12.0%
	Total	100.0%	100.0%	100.0%	100.0%

Qualifiers
The following are the performance qualifiers for any Award: (i) no submission of material information to a regulatory or a reporting agency is significantly past due; (ii) the Bank makes sufficient progress, as determined by the Board, in the timely remediation of significant examination, monitoring and other supervisory findings; (iii) no material risk-management deficiency exists at the Bank; (iv) no operational errors or omissions result in material revisions to the financial results, information submitted to the FHFA, or data used to determine incentive payouts; (v) the Bank has sufficient capital to pay dividends and the ability to repurchase member stock. 

									
	Approved 12/7/18		2

APPENDIX VI
2020 Performance Period Goals, Qualifiers & Awards Scale 

																								
	Goals	Goal Components	Goal
Weight	Goal Component Weight	Goal Measures
	Risk Management	30%					
		A) Cybersecurity - Strengthen Access Management to Bank Information		30%	Threshold (75%): Replace the requirement for Bank team members to enter a shared secret identifier (user ID and complex password) to access the Bank’s computing environment with alternative user validation processes and technology. The replacement must meet or exceed authentication controls standards defined by NIST, be easier for team members to recall than a traditional password and integrate with the Bank’s existing identity and access management controls.
	Meets (100%): Onboard all High and Medium Inherent-Risk enterprise applications that have been risk ranked in 2019 to SailPoint, the Bank’s centralized access management tool. 
	Exceeds (125%): Strengthen the Access Control Review process by partnering with application owners to clearly define and document application entitlements for all High Inherent-Risk enterprise applications.
	Far Exceeds (150%): Partner with application owners to define and document application entitlements of 25% of the Medium Inherent-Risk enterprise applications.
	B) Credit Risk Management - Improve Efficiency and Quality of Underwriting		25%	Threshold (75%): Strengthen counterparty underwriting with focus on internal ratings methodology and adoption of formal benchmark ratings to assure compliance with the new regulation on extension of unsecured credit which removes reliance on NRSRO ratings.
	Meets (100%): Re-design the member credit underwriting process to allow for increased automation and resource allocation commensurate to a member’s risk profile, underwriting complexity, and/or strategic importance.
	Exceeds (125%): Enhance member credit underwriting methodologies and quantitative/credit model support for insurance companies.
	Far Exceeds (150%): Be production ready with a credit underwriting platform including automated workflows, data-driven analytics, approval process management, and document administration to: (1) boost underwriting effectiveness and efficiency, (2) foster an end-to-end member-focused approach, and (3) enhance risk governance.
	C) Compliance Risk Management - Strengthen Enterprise-Wide Compliance Framework		25%	Threshold (75%): Complete the Bank’s inventory of regulatory requirements and enter the population into the Logic Manager GRC Platform to allow for follow-up process automation.
	Meets (100%): Define and implement a Compliance/Regulatory-related risk rating matrix (“Compliance Risk Taxonomy”) for assessing the risk of non-compliance with regulatory requirements (as “High, Medium, or Low”)
	Exceeds (125%): Based on the Taxonomy identified in the “Meets” goal, compile a listing of all Bank process and control activities applicable to those regulatory requirements assessed as “high-risk.”
	Far Exceeds (150%): Based on the Taxonomy identified in the “Meets” goal, compile a listing of all Bank process and control activities applicable to at least 25% of those regulatory requirements assessed as “medium risk.”
		D) Execute the Bank’s LIBOR Transition Plan		20%	Threshold (75%): Adhere to new ISDA benchmark fallbacks protocol to amend legacy derivatives contracts with improved standard LIBOR fallback provisions.
	Meets (100%): Implement certification process from members regarding the amount of pledged LIBOR-indexed collateral, request information about the successor index from members providing loan level data and determine collateral discount methodology for LIBOR-indexed collateral.
	Exceeds (125%): Provide an update of the LIBOR transition financial risk assessment reported to the Board and include balance sheet and income statement exposure, as well as renewed PLMBS analysis.
	Far Exceeds (150%): Enhance processes to support funding, hedging, and member products that require non-LIBOR derivatives with embedded options.

									
	Approved 1/31/20		1

2020 Performance Period Goals, Qualifiers & Awards Scale (con’t)

																								
	Goals	Goal Components	Goal
Weight	Goal Component Weight	Goal Measures
	Franchise Enhancement	40%					
		A) Financial Performance - Adjusted Return on Capital Spread		30%	Adjusted Return on Capital Spread
	75%	100%	125%	150%
	1.90%	2.20%	2.50%	2.80%
		B) Talent - Talent Development		20%	Threshold (75%): Develop and implement a talent management framework and all Extended Leadership Team (ELT) members complete the Competency Workshops.
	Meets (100%): All Leadership Team (LT) members complete a 360-review process and create a development plan based on the 360-review feedback.
	Exceeds (125%): All ELT members complete a 360-review process and create a development plan based on the 360-review feedback.
	Far Exceeds (150%): All ELT members complete a Workday Talent Profile and 80% of Bank team members complete the Competency Workshops.
		C) Member Business - Advances and Letters of Credit Volume		15%	Member Advances and Letters of Credit (Average Daily Balance ($Bils.)
	75%	100%	125%	150%
	$70.0	$78.0	$83.0	$85.5
		D) Member Business - Member Engagement		15%	Number of Engagements
	75%	100%	125%	150%
	110	125	135	145
		E) Prioritization - Bank-Wide Prioritization and Process Improvement		20%	Threshold (75%): Broaden the Banks prioritization framework to include small efforts (1-2 months of work effort), RPA, and process improvement to ensure the highest value items are being allocated resources.
	Meets (100%): Host one or more idea generation event(s) to solicit ideas from across the Bank.  Voters and Lean Change Agents champion ideas and ready them for inclusion into the bank-wide prioritization process.
	Exceeds (125%): Deliver one measurable cross-process improvement across one business unit.
	Far Exceeds (150%): Deliver one additional measurable cross-process improvement based on output from an idea generation event.
	3) Community Investment	15%		
		CIP/ACE Advances, Letters of Credit, and AHEAD		100%	Number of Members
	75%	100%	125%	150%
	42	47	50	55
	4) Diversity & Inclusion	15%		
		Diversity & Inclusion		100%	Threshold (75%): Expand internal internship program to a minimum of five (5) departments.
	Meets (100%): Deliver a training workshop focused on ensuring accountability and valuing differences to 80% of managers.
	Exceeds (125%): Host external event for diverse dealers with an educational element.
	Far Exceeds (150%): Design/develop diverse supplier incubator initiative with two (2) diverse suppliers.

									
	Approved 1/31/20		2

2020 Performance Period Goals, Qualifiers & Awards Scale (con’t)

Incentive Award Opportunities
																																							
		Total Incentive Award as % of Compensation (Base Salary)	Year-End Incentive Award as % of Compensation (Base Salary)	Deferred Incentive Award as % of Compensation (Base Salary)

	Title	Threshold	Meets (Target)	Exceeds	Far Exceeds	Threshold	Meets (Target)	Exceeds	Far Exceeds	Threshold	Meets (Target)	Exceeds	Far Exceeds
	CEO/
EVP	40%	80%	96%	100%	20%	40%	48%	50%	20%	40%	48%	50%

Goal Weights
															
		CEO/EVP	EVP, Chief Risk Officer
		Corporate Goal Weights	Goal Weight 
(incl. individual goals)	Corporate Goal Weights	Goal Weight 
(incl. individual goals)
	Individual	N/A	20.0%	N/A	20.0%
	Risk Management	30.0%	24.0%	50.0%	40.0%
	Franchise Enhancement	40.0%	32.0%	25.0%	20.0%
	Community Investment	15.0%	12.0%	10.0%	8.0%
	Diversity and Inclusion	15.0%	12.0%	15.0%	12.0%
	Total	100.0%	100.0%	100.0%	100.0%

Qualifiers
The following are the performance qualifiers for any Award: (i) no submission of material information to a regulatory or a reporting agency is significantly past due; (ii) the Bank makes sufficient progress, as determined by the Board, in the timely remediation of significant examination, monitoring and other supervisory findings; (iii) no material risk-management deficiency exists at the Bank; (iv) no operational errors or omissions result in material revisions to the financial results, information submitted to the FHFA, or data used to determine incentive payouts; (v) the Bank has sufficient capital to pay dividends and the ability to repurchase member stock. 

									
	Approved 1/31/20		3

FEDERAL HOME LOAN BANK OF SAN FRANCISCO
Executive Incentive Plan
APPENDIX VII
2021 Performance Period Goals, Qualifiers & Awards Scale															
	Goal Category
	Goal Component Description
	Goal Category Weight
	Goal Component Weight
	Goal Measures

	Risk Management
	30%
		
		Credit and Collateral Risk Management – Improve Underwriting Efficiency, Quality, and Frameworks
		40%	Goal Target 1: Develop risk management framework to manage and mitigate the risks associated with expanding eligible collateral types for CDFIs, specifically to include residential loans-held-for-sale, within the defined risk appetite of the Bank.

	Goal Target 2: Design and develop for production in 2022 a new depository member credit model to improve model accuracy and predictability of failure in response to the downturn in credit cycle.

	Goal Target 3: Enhance and expand the Bank’s insurance company member credit and collateral framework in consideration of available statutory protections for FHLBs in certain insurance states.

	Goal Target 4: Complete within CreditLens the implementation of the Bank’s credit risk rating processes for both members and counterparties and perform at least one end to end credit approval workflow process in the new credit underwriting platform.

	Operational Risk Management – Enhance Framework and Coverage
		40%
	Goal Target 1: Define and implement an Operational Risk Management framework, which at a minimum would include, revised policies and procedures, and more formalized governance structures (e.g., management and Board reporting, control issue follow-ups).

	Goal Target 2: Establish and begin executing an IT Risk Management Framework to meet industry leading practices (e.g., NIST), inclusive of new procedures, and increased risk monitoring and testing.

	Goal Target 3: Complete risk assessment and taxonomy re-alignment for three more Bank programs (e.g., EUC, BCM, and Compliance/Fraud), and surpass delivery of the Operational Risk Assessment Plan for 2021.

	Goal Target 4: Define and complete a comprehensive Data Management Maturity Model assessment and identify areas of improvement, according to leading practices (e.g., Enterprise Data Management Council’s Data Capability Assessment Model (DCAM)).

	LIBOR – Execute LIBOR Transition Plan
		20%
	Goal Target 1: By no later than June 30, 2021, be prepared to implement any margin or valuation changes for post-2021 LIBOR collateral (including necessary system, EUC, and model changes).

	Goal Target 2: Present updated financial forecast for potential changes in fallback language and changes in LIBOR exposure related to changes in balance sheet LIBOR exposure.

	Goal Target 3: Perform cost/benefit analysis of proactively terminating LIBOR derivatives before 12/31/2021 versus relying on the ISDA Fallback Rates and implement the management approved alternative.

	Goal Target 4: Modify Calypso, QRM, and VS2 systems to implement U.S. Treasury standard terms and conditions for SOFR floating-rate notes.

									
	Approved 5/28/21		1

2021 Performance Period Goals, Qualifiers & Awards Scale (Continued)

																								
	Goal Category
	Goal Component Description
	Goal Category Weight
	Goal Component Weight
	Goal Measures

	Franchise Enhancement
	40%
		
		Financial Performance – Adjusted Return on Capital Spread
		

	Adjusted Return on Capital Spread

	25%	Minimum
(75%)
	Meets
(100%)
	Exceeds
 (125%)
	Far Exceeds
(150%)

		1.75%
	2.40%
	2.48%
	2.78%

		Operating Efficiency – Operating Expense Management
		

	Operating Expenses
(Millions)

	25%	Minimum
 (75%)
	Meets
(100%)
	Exceeds
 (125%)
	Far Exceeds
(150%)

		$153.5
(2021 Budget
+ 1%)
	$152.0
(2021 Budget)
	$150.5
(2021 Budget
- 1%)
	$147.4
(2021 Budget
- 3%)

		Member Business – Advances and Letters of Credit Volume
		

	Advances and Letters of Credit Volume Average Daily Balance (Billions)

	25%	Minimum
 (75%)
	Meets
(100%)
	Exceeds
 (125%)
	Far Exceeds
(150%)

		$35.4
	$45.3
	$52.1
	$62.1

		Talent – Talent Development
And Return to Office Strategy

		

	Goal Target 1: Enhance succession planning review for all EVP and SVP roles ensuring actionable development plans in place for each identified EVP successor, inclusive of milestone efforts.

		Goal Target 2: Build talent pipeline in support of succession planning by implementing Bank-wide Mentor Program, including at least 10 mentors/mentees and ensuring each mentee completes a development plan in partnership with their mentor and manager by year end.

	25%	Goal Target 3: By April 30, 2021, establish the Bank’s Return to Office (RTO) Strategy, Framework, and Communications Plan, including deliverables and semiannual measurements. Delineate clear criteria for stage progression / reversal. Starting in Q3 2021, provide at least quarterly report-outs of current and upcoming deliverables and semiannual measurements.

		Goal Target 4: Create and communicate to all team members the Bank’s 2021 flexible work arrangement policy. Using available benchmark data and/or other evidence of evolving best practices for Bay Area companies, design a framework for the Bank’s longer-term “Future of Work” strategy, beyond RTO planning to address culture, flexibility, and employee engagement.

									
	Approved 5/28/21		2

2021 Performance Period Goals, Qualifiers & Awards Scale (Continued)

																								
	Goal Category
	Goal Component Description
	Goal Category Weight
	Goal Component Weight
	Goal Measures

	Community Investment
	15%		
		CIP/ACE Advances, Letters of Credit, and AHEAD
		100 	%	Number of Members

	Minimum
 (75%)
	Meets
(100%)
	Exceeds
 (125%)
	Far Exceeds
(150%)

	30	40	50	60
	Diversity, Equity, and Inclusion
	15%		
		Diversity, Equity, and Inclusion
		100%	Goal Target 1: Provide additional opportunities to increase spend with
suppliers from underrepresented communities by ensuring that 15% of
bid opportunities for the 2021 calendar year include a diverse supplier in
the comparative / competitive process.

Given the volume of the Bank’s existing large, long term contracts it will
take significant effort by the Bank to provide sufficient bid opportunities
for well positioned diverse suppliers to participate and earn high-value
business on merit. Currently the Bank includes suppliers from
underrepresented communities in about 5% of bid opportunities.

	Goal Target 2: Increase employee volunteering by employees to 10% by the end of 2021. In 2020, only 3% of employees submitted volunteer hours. This increase will be facilitated by supporting or sponsoring Bank-wide physical or virtual financial literacy (homeownership and wealth management) volunteering opportunities in minority or underrepresented communities. Volunteer opportunities may be aligned with Community Investment program recipients and/or Public Affairs activities.

	Goal Target 3: By September 30, 2021, develop a strategic plan for the
Bank to address the Black homeownership gap which will include
measurable goals and an implementation timeline

	Goal Target 4: Increase the Bank’s diverse, non-exempt spend by 7%
in 2021, which would represent an increase in spend of more than
$500,000 with diverse suppliers or diverse equity partners/owners of
non-diverse suppliers when compared with 2020 calendar year spend.

Award Levels																														
		Total Annual Award
as % of Base Salary
	Year-End Award
as % of Base Salary
	Deferred Award
as % of Base Salary

	Title
	Minimum
	Meets
	Maximum
	Minimum
	Meets
	Maximum
	Minimum
	Meets
	Maximum

	CEO
	50%
	80%
	100%
	25%
	40%
	50%
	25%
	40%
	50%

	EVP/SVP
	40%
	65%
	85%
	20%
	32.5%
	42.5%
	20%
	32.5%
	42.5%

									
	Approved 5/28/21		3

2021 Performance Period Goals, Qualifiers & Awards Scale (Continued)

Goal Weights
															
		CEO/EVP/SVP
	EVP, Chief Risk Officer

		Corporate Goal Weights
	Goal Weight
(incl. individual goals)
	Corporate Goal Weights
	Goal Weight
(incl. individual goals)

	Individual
	N/A
	20%
	N/A
	20%

	Risk Management
	30%
	24%
	50%
	40%

	Franchise Enhancement
	40%
	32%
	25%
	20%

	Community Investment
	15%
	12%
	10%
	8%

	Diversity and Inclusion
	15%
	12%
	15%
	12%

	Total
	100%
	100%
	100%
	100%

Qualifiers
The following are the performance qualifiers for any Award: (i) no submission of material information to a regulatory or a reporting agency is significantly past due; (ii) the Bank makes sufficient progress, as determined by the Board, in the timely remediation of significant examination, monitoring and other supervisory findings; (iii) no material risk-management deficiency exists at the Bank; (iv) no operational errors or omissions result in material revisions to the financial results, information submitted to the FHFA, or data used to determine incentive payouts; (v) the Bank has sufficient capital to pay dividends and the ability to repurchase member stock. 

									
	Approved 5/28/21		4

FEDERAL HOME LOAN BANK OF SAN FRANCISCO
Executive Incentive Plan
APPENDIX VIII
2022 Performance Period Goals, Qualifiers & Awards Scale
																		
	Goal Category
(Weight)
	Goal Component Description
	Goal Component Weight
	Goal Measures

	Business and Financial (40%)

		Financial Performance:
Adjusted Return on Capital Spread
	33%
	Adjusted Return on Capital Spread

	Minimum
(75%)
	Target
(100%)
	Maximum
(150%)

	Plan: Pessimistic
0.56%
	Plan: Base
1.29%
	Plan: Optimistic + 0.30%
1.66%

		Operating Efficiency:
Operating Expense Management
	33%
	Operating Expenses (millions)

	Minimum
(75%)
	Target
(100%)
	Maximum
(150%)

	Budget + 2%
$160.3
	Budget
$157.2
	Budget - 3%
$152.5

		Member Business:
Advances and Letters of Credit Volume
	33%
	Advances and Letters of Credit Volume Average Daily Balance (billions)

	Minimum
(75%)
	Target
(100%)
	Maximum
(150%)

	Plan: Pessimistic
$23.9
	Plan: Base
$27.8
	Plan: Optimistic + $4 bln
$35.4

Approved 12/10/21    Page 1

2022 Performance Period Goals, Qualifiers & Awards Scale (Continued)

												
	Goal Category
(Weight)
	Goal
Component Description
	Goal Component Weight
	Goal Measures

	Risk Management (20%)

		Operational Risk Management
	50%
	Goal Target 1: ORM Harmonization: ORM and Information Technology Risk Management (ITRM) will surpass delivery of fifteen (15) Operational Risk Assessments for 2022 (inclusive of Integrated IT assessments).

	Goal Target 2: Centralized Risk Control Taxonomy: Collaborate with other assurance groups (e.g., EUC Risk Management, Model Risk Management, Internal Audit, Supplier Risk Management) to create a risk-based inventory of critical Bank processes that will be mapped to the organizational taxonomy. The cataloguing will include all Business Units rated as “Critical” and “High” as deemed by ERM’s Inherent Risk Assessment. Additionally, IT and InfoSec critical processes, risks, and controls will be mapped to industry leading standards (e.g., NIST) and be included in a centralized repository.

	Goal Target 3: GRC enablement: Development of a roadmap for maximizing the operational synergies for several GRC systems that are used by various business units. This effort includes, but is not limited to, aggregation of business requirements for GRC functionality across the Bank, optimization of data accessibility, and identification of possible GRC-related solutions.

	Information Security Risk Management
	50%
	Goal Target 1: TSS and IS partner to develop a secure configuration baseline for the Bank’s Active Directory. The new secure configuration baseline will utilize industry leading practices, where available.

	Goal Target 2: TSS and IS partner to implement a secure configuration baseline for the Bank’s Active Directory.

	Goal Target 3: TSS and IS partner to implement monitoring to ensure that the Bank’s Active Directory configuration remains secure and in alignment with the defined secure configuration baseline.

Approved 12/10/21    Page 2

2022 Performance Period Goals, Qualifiers & Awards Scale (Continued)

																											
	Goal Category
(Weight)
	Goal
Component Description
	Goal Component Weight
	Goal Measures

	Community Investment (20%)

		Nevada Targeted Programs
	50%
	Goal Target 1: Complete and execute agreement with the Nevada Housing Coalition (NHC) to administer new Voluntary Capacity Building Program, which will include details on securing partnerships with other organizations operating in Nevada, as well as providing financial literacy and other housing-related training to housing and economic development sponsors to facilitate access to the Bank’s affordable housing and community investment programs. Training will support the creation of a pipeline of Nevada project sponsors and members to apply to the AHP General Fund or Targeted Fund.

	Goal Target 2: Establish framework for new Nevada AHP Targeted Funding including technology, governance, and programmatic components.

	Goal Target 3: Obtain Board approval to offer the Targeted Fund in 2023.

		CIP/ACE Advances, Letters of Credit, and AHEAD
	25%
	Number of Members

	Minimum
(75%)
	Target
(100%)
	Maximum
(150%)

	40
	55
	70

		Homeownership Counseling Program
	25%
	Number of Members

	Minimum
(75%)
	Target
(100%)
	Maximum
(150%)

	5
	8
	13

Approved 12/10/21    Page 3

2022 Performance Period Goals, Qualifiers & Awards Scale (Continued)

																		
	Goal Category
(Weight)
	Goal Component Description
	Goal Component Weight
	Goal Measures

	DEI and Talent (20%)

		Supplier Diversity:
Create additional opportunities with people of color and diverse suppliers
	33%
	Percentage of diverse suppliers included in bid opportunities

	Minimum
(75%)
	Target
(100%)
	Maximum
(150%)

	50%
	53%
	58%

		Workplace Diversity:
Expand participation in diverse employee development programs
	33%
	Employee participation percentage

	Minimum
(75%)
	Target
(100%)
	Maximum
(150%)

	22%
	25%
	30%

		Talent:
Talent review and succession planning
	33%
	Goal Target 1: Conduct talent review and succession planning for all EVP and SVP roles (~10% of employees).

	Goal Target 2: Conduct talent review and succession planning for all MD roles (~14% of employees).

	Goal Target 3: Conduct talent review for all Senior Directors and Directors (~35% of employees).

Approved 12/10/21    Page 4

2022 Performance Period Goals, Qualifiers & Awards Scale (Continued)

Award Levels
																														
		Total Annual Award
as % of Base Salary
	Year-End Award
as % of Base Salary
	Deferred Award
as % of Base Salary

	Title
	Minimum
	Meets
	Maximum
	Minimum
	Meets
	Maximum
	Minimum
	Meets
	Maximum

	CEO
	50%
	80%
	100%
	25%
	40%
	50%
	25%
	40%
	50%

	EVP/SVP
	40%
	65%
	85%
	20%
	32.5%
	42.5%
	20%
	32.5%
	42.5%

Goal Weights
															
		CEO/EVP/SVP
	EVP, Chief Risk Officer

		Corporate Goal Weights
	Goal Weight
(incl. individual goals)
	Corporate Goal Weights
	Goal Weight
(incl. individual goals)

	Individual
	N/A
	20%
	N/A
	20%

	Business and Financial
	40%
	32%
	20%
	16%

	Risk Management
	20%
	16%
	50%
	40%

	Community Investment
	20%
	16%
	10%
	8%

	DE&I and People
	20%
	16%
	20%
	16%

	Total
	100%
	100%
	100%
	100%

Qualifiers
The following are the performance qualifiers for any Award: (i) no submission of material information to a regulatory or a reporting agency is significantly past due; (ii) the Bank makes sufficient progress, as determined by the Board, in the timely remediation of significant examination, monitoring and other supervisory findings; (iii) no material risk-management deficiency exists at the Bank; (iv) no operational errors or omissions result in material revisions to the financial results, information submitted to the FHFA, or data used to determine incentive payouts; (v) the Bank has sufficient capital to pay dividends and the ability to repurchase member stock. 

Approved 12/10/21    Page 5Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”) by and between QSAM Biosciences, Inc., a Delaware corporation with an address of 9442
Capital of Texas Hwy N, Plaza 1, Suite 500, Austin, TX 78759 (the “Company”), and Adam King with a current residence
located in Wendell NC (the “Executive”) is dated as of March 3, 2022.

 

RECITALS

 

WHEREAS,
the Company desires to continue to secure the employment of the Executive upon the terms and conditions hereinafter set forth; and

 

WHEREAS,
the Executive desires to accept such employment with the Company upon the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual covenants and promises contained herein, the parties, each intending
to be legally bound hereby, agree as follows:

 

 1. Employment.

 

1.1 The
Company hereby agrees to employ the Executive and the Executive hereby agrees to serve the Company on the terms and conditions set forth
in this Agreement.

 

2. Term;
Renewal.

 

2.1  The initial term of the Executive’s employment under this Agreement shall commence as
of March 3, 2022 (the “Effective Date”) and shall continue for a period of one (1) year ending on the first anniversary of
the Effective Date (the “Initial Term”), unless such employment is sooner terminated by either the Executive or the Company
in accordance with the terms of this Agreement.

 

2.2  The term of this Agreement may be extended for such periods (the “Renewal Term(s)”)
as the parties may mutually agree on or before the scheduled expiration of the Initial Term or any Renewal Term. To be effective, any
such agreement to extend the term of the Agreement for an additional Renewal Term must be by mutual consent in writing at least three
(3) months prior to the scheduled expiration of the Initial Term or any Renewal Term, as the case may be, signed by the Executive and
a duly authorized representative of the Company; such negotiation(s) and signatures shall not be unreasonably withheld. If no such agreement
is reached, the Executive’s employment under this Agreement shall cease as of the end of the Initial Term or any then current Renewal
Term, as the case may be.

 

2.3  As used in this Agreement, the term “Employment Period” shall be deemed to refer
to and include the period during the Initial Term and any Renewal Term that the Executive is employed by the Company pursuant to the
terms and provisions of this Agreement.

 

 3. Duties and Responsibilities.

 

3.1  During the Employment Period, the Executive shall be employed as Chief Financial Officer
of the Company, or such other similar title as the Company and the Executive may hereinafter agree. The Executive shall report to
the CEO of the Company, and ultimately to the Board of Directors (“Board”), and perform such duties and have such responsibilities,
consistent with her position and past experience, as may be assigned to her from time to time, by the Board.

 

    	 

    	 

    

 

3.2  The Executive shall devote his time, attention and energies to the business and affairs of
the Company, shall faithfully, diligently and competently perform the duties of her employment, and shall do all reasonably within her
power to promote, develop and extend the business of the Company. Notwithstanding the foregoing, the Executive shall be permitted to
(a) serve on company, consulting, industry, civic, educational or charitable boards or committees, or (b) provide limited accounting
services to other clients, so long as such activities do not compete directly with the available Company services or products or unduly
interfere with the performance of the Executive’s duties and responsibilities as an employee of the Company. The Executive may
not serve as a Chief Financial Officer or Principal Accounting Officer on a part-time, full time or interim basis, for any other company
during the Term hereof.

 

3.3  The Executive shall perform his duties hereunder at the offices of the Company or such other
site or sites as may be selected by the Company within a 50 mile radius of the Executive’s current residence. The Executive shall
be available for travel as needed for the performance of her job duties. In the event that the Company does not supply an office, the
Executive, at her own expense, will maintain an office consistent with the image, mission and goals of the Company. Such office shall
be appropriate for conducting business on behalf of the Company including conducting necessary business meetings.

 

 4. Compensation.

 

4.1
Base Salary. The Company shall pay the Executive a base salary (the “Base Salary”) as approved by the Compensation
Committee of the Board (the “Compensation Committee”). The Executive’s Base Salary upon closing of the Company’s
next funding of at least $5 million (“Salary Start Date”) shall be $275,000 per year. Until the Salary Start Date, the Executive
shall continue to bill the Company hourly per his current arrangement. The Base Salary shall be payable in accordance with the Company’s
regular payroll practice for its executives. During the Employment Period, the Base Salary shall be reviewed annually beginning no later
than December 31, 2022, for increase in accordance with the Company’s compensation policies pertaining to executive personnel at
the senior management level, as determined by the Compensation Committee. Following any increase in the Base Salary, the new salary shall
be considered the Base Salary. Any increase in the Base Salary shall not limit or reduce any other obligation of either party under this
Agreement.

 

4.2 Management
Incentive Plan. In addition to the Base Salary referred to in Section 4.1, the Executive shall be entitled to participate in the
QSAM Management Incentive Plan (the “MIP”). The MIP generally provides for the payment of stock and/or cash bonus awards
to the executive officers of the Company based on the achievement of performance objectives, and equal up to 50% of the
Executive’s Base Salary, as determined by the Compensation Committee, and which maximum bonus under the MIP will be
re-evaluated and adjusted prior to the first Renewal Term. The stock and/or cash bonus amount, qualifying performance objectives and
terms required to earn the incentive bonus for the Executive shall be based upon the annual business plan, corporate objectives and
budget prepared by the executive team and approved by the Compensation Committee prior to the start of the new fiscal year but no
more than sixty (60) days following the start of the relevant fiscal year. Bonuses awarded under the MIP generally are paid during
the month of February in the year following the plan year for which the bonuses are awarded, notwithstanding such, bonuses awarded
under the MIP shall be paid no later than March 31st following the plan year for which the bonuses are
awarded.

 

4.3 Stated
Performance Bonus. The Executive shall receive a one-time performance bonus of $25,000 upon his completion of developing and
implementing the initial required accounting and financial control processes and procedures as required in Sarbanes Oxley (SOX)
rules and regulations pertaining to public companies on a national securities exchange, as reasonably approved by the
Company’s Chair of the Audit Committee.

 

4.4 Stock
Options. The Executive shall receive on the Effective Date a grant of 500,000 incentive common stock options (such number subject
to adjustment in the instance of a reverse split of the Company’s common stock), vesting as follows: (1) 25% upon completion of
SOX controls and procedures (per Section 4.3 above); (2) 25% upon completion of two additional milestones (to be agreed upon by the Executive
and the Board), and (3) 50% monthly vesting starting upon 1st year anniversary of full employment over following 36 months
(i.e., 1/36 of the time vested option amount each month starting on month 12 and ending on month 48 of full employment). The options
shall have a 10-year term; and be exercisable at market price upon grant. The option agreement shall provide for accelerated vesting
in the case of a change of control, termination without cause and other standard conditions. Additional annual stock option awards will
be issued at the discretion of the Compensation Committee.

 

    	 

    	 

    

 

 5. Benefits.

 

5.1
The Executive shall be entitled to participate in all employee benefit plans and programs that are generally available to the
salaried employees of the Company during the Employment Period (the “Regular Benefits”).

 

5.2 In
addition to the Regular Benefits, the Executive shall be eligible to participate in any additional compensation programs or arrangements
relating to, or arising out of, a change in control of the Company that are adopted by the Company after the date of this Agreement and
made generally available to the other senior executive officers of the Company as a group.

 

6. Expenses
and Vacations.

 

6.1 Expenses.
The Executive shall be reimbursed for the reasonable business expenses incurred by her in connection with the performance of their
duties under this Agreement upon presentation of an itemized account and written proof of such expenses and provided that such
expenses are of the type customarily reimbursed by the Company and have been approved in accordance with any procedures of the
Company then in effect.

 

6.2
Vacations, Sick Leave and Personal Time Off. The Executive shall be entitled on the first year of the Term to three (3) weeks
of paid vacation, paid sick leave and paid personal time off (“PTO”) administered under the Company’s Employee Leave
Time Programs, as applicable and in effect (the “Leave Program”), which amount of time will be re-evaluated prior to the
initial Renewal Term or as provided in the Company’s formal Leave Program when instituted. The Company may modify the Leave Program
at any time within its sole and absolute discretion, however the Executive shall receive written notice of any modifications to the Leave
Program sixty (60) days before such modifications are implemented. The Employee shall not take PTO during periods when time sensitive
SEC filings are due.

 

7. Termination.
The Executive’s employment by the Company under this Agreement may be terminated prior to the end of the Initial Term or any then-current
Renewal Term in accordance with the provisions of this Section 7.

 

7.1 Termination
by the Company for Cause. The Company may terminate the employment of the Executive hereunder at any time and without prior notice
for “Cause.” For purposes of this Section 7.1, the term “Cause” shall mean and include any of the following:

 

(a)
the conviction of the Executive, or the entry of a plea of nolo contendere by the Executive, for a felony or a crime of moral
turpitude; or

 

(b)
the commission by the Executive of any act of fraud, misappropriation, embezzlement, regardless of whether such act is related to their
duties under this Agreement; or

 

(c)
the violation of a published Company policy which stipulates the Executive may be terminated by the Company for cause.

 

7.2 Termination
by the Executive for any Reason. The Executive may terminate their employment hereunder at any time for any reason whatsoever by
giving the Company written notice of the intent to do so at least thirty (30) days prior to the date on which the proposed termination
is to be effective.

 

7.3  Termination by the Company without Cause. The Company may terminate the employment of
the Executive hereunder at any time without Cause, for any reason whatsoever, by giving the Executive written notice of its intent to
do so at least thirty (30) days prior to the date on which the proposed termination is to be effective.

 

7.4 Termination
by the Executive Following a Material Change. The Executive may terminate their employment hereunder upon thirty (30) days prior
written notice to the Company following a “Material Change.” For purposes of this Section 7.4, the term “Material Change”
shall mean and include any of the following:

 

    	 

    	 

    

 

(a)
a fundamental change in the duties and responsibilities of the Executive (excluding Interim Assignments, if applicable) which is inconsistent
with the duties and responsibilities normally associated with the position of Chief Financial Officer (or such other position Executive
may be promoted to during the Employment Period), which change has not been reversed within thirty (30) days after the delivery to the
Company of written notice from the Executive objecting to such change; or

 

(b)
Executive is required to report to a person other than the Board of Directors of the Company, which such reporting obligation is not
reversed within thirty (30) days after the delivery to the Company of written notice from the Executive objecting to such reporting obligation;
or

 

(c)
reduction in or failure by the Company to pay to Executive the Base Salary as set forth in Section 4.1 hereof unless agreed to by the
Executive; or

 

(d)
failure of the Company to pay, if and when due, any bonus to which the Executive is entitled under the MIP or Transaction Bonus, as then
in effect; or

 

(e)
any other material breach by the Company of any material term hereof, which breach has not been remedied within 30 days after the delivery
to the Company of written notice thereof; or

 

(f)
a relocation of the Executive office more than fifty miles from the current location as of the execution of this agreement.

 

7.5 Termination
Upon the Death of the Executive. In the event that the Executive shall die at any time during the Employment Period, the Executive’s
employment hereunder shall terminate immediately.

 

7.6 Termination
Upon the Disability of the Executive. In the event that the Executive shall become “disabled” at any time during the
Employment Period, the Company shall have the right (but not the obligation) to terminate the Executive’s employment hereunder
on thirty (30) days prior written notice to the Executive. For purposes of this Section 7.6, the Executive shall be deemed to be “disabled”
when she or she is considered disabled by two (2) medical professionals, and such consideration is documented in a writing to the Company
and the Executive of such disability.

 

7.7 Termination
Upon Expiration of Initial Term or Renewal Term. Unless action is taken to extend the Initial Term or any then-current Renewal Term
in accordance with the provisions of Section 2.2 above, the Executive’s employment under this Agreement shall terminate automatically
and without the taking of any action by the Company or the Executive as of the end of the Initial Term or any then-current Renewal Term.

 

8. Effect
of Termination.

 

8.1 Termination
by the Company for Cause. Upon a termination of the Executive’s employment hereunder in accordance with the terms and provisions
of Section 7.1, the Executive shall be entitled to receive their current Base Salary and Regular Benefits, including a lump-sum payment
in respect of any accrued but unused PTO under the Leave Program (“Accrued Salary and Benefits”), calculated through the
date such termination is effective, but the Executive thereafter shall not be entitled to receive any additional compensation from the
Company. The Executive shall continue to be bound by the terms and provisions of Sections 10, 11, 12, 13 and 14 in accordance with their
terms.

 

8.2 Termination
by the Executive for any Reason.

 

(a)
Upon a termination of the Executive’s employment hereunder in accordance with the terms and provisions of Section 7.2, the Executive
shall be entitled to receive all Accrued Salary and Benefits calculated through the date such termination is effective. The Executive
thereafter shall not be entitled to receive any additional compensation from the Company.

 

    	 

    	 

    

 

(b)
Notwithstanding the termination of Executive’s employment, the Executive shall continue to be bound by the terms and provisions
of Sections 10, 11, 12, 13 and 14 in accordance with their terms.

 

8.3 Termination
by the Company without Cause; Termination by the Executive Following a Material Change.

 

(a)
Upon a termination of the Executive’s employment hereunder in accordance with the terms and provisions of Section 7.3 or Section
7.4, the Executive shall be entitled to receive the following (sometimes hereinafter referred to collectively as the “Accrued Total
Compensation and Benefits”):

 

(i)
all Accrued Salary and Benefits calculated through the date such termination is effective, and

 

(ii)
a pro-rated portion of any bonus to which the Executive otherwise would have been entitled under the MIP or Transaction Bonus with respect
to the plan year during which the termination is effective (the “Pro-Rated Current Year Bonus”), or

 

(iii)
a lump sum payment equal to fifty percent (50%) of Executive’s then-current full target bonus opportunity under the MIP (payable
during the month of March in the year following the year during which the Executive’s employment hereunder is terminated), whichever
of Sections 8.3(a)(ii) or 8.3(a)(iii) is greater; and

 

(iv)
any and all remaining stock options and/or restricted stock previously granted to the Executive by the Company that has not already vested
through the date such termination is effective, will immediately vest upon the date such termination is effective. Furthermore, the executive
will be granted a two year period to exercise any outstanding options.

 

(b)
In addition to the foregoing, the Executive shall be entitled to receive the following additional compensation and benefits upon a termination
of employment in accordance with the terms and provisions of Section 7.3 or Section 7.4:

 

(i)
salary continuation and health care coverage for 3 months (which may include COBRA premiums) (payable in accordance with the Company’s
regular payroll practices) following the effective date of the termination of the Executive’s employment hereunder, which severance
period shall be extended to 6 months starting in the initial Renewal Term;

 

(c)
Except for the compensation and benefits specified in paragraphs (a) and (b) above, the Executive thereafter shall not be entitled to
receive any additional compensation from the Company.

 

(d)
Notwithstanding the termination of Executive’s employment and except as set forth in paragraph (e) below, the Executive shall continue
to be bound by the terms and provisions of Sections 10, 11, 12, 13 and 14 in accordance with their terms.

 

(e)
In the event that the Executive desires to obtain relief from the non-competition provisions set forth in Section 11, the Executive may
submit a written waiver request to the Company, which shall reasonably be granted by the Company within sixty (60) days after receipt.
The written waiver request shall include disclosure of the organization, role and responsibilities the Executive intends to pursue. Provided
the Company agrees to the waiver, the non-competition provisions set forth in Section 11 shall terminate subject to any reasonable qualifications
stipulated by the Company, and the Executive thereafter shall not be entitled to any additional compensation or benefits under paragraph
(b) above (it being understood that nothing in this paragraph (e) shall affect or impair the Executive’s right to receive the Accrued
Total Compensation and Benefits specified in paragraph (a) above). In the event that a waiver granted under this paragraph (e) shall
be effective for less than the full nine (9) month period of restriction, the Executive shall be entitled to a pro-rated portion of the
compensation and benefits specified in paragraph (b).

 

    	 

    	 

    

 

8.4 Termination
Upon the Death of the Executive. Upon a termination of the Executive’s employment hereunder in accordance with the terms and
provisions of Section 7.5, the Company shall have no further liability or obligation to the Executive’s estate, except that the
Executive’s estate shall be entitled to receive (a) all Accrued Total Compensation and Benefits calculated through the date such
termination is effective, and (b) the payments provided under any group life insurance policy or policies, if any, which may be in effect
generally for the benefit of all full-time salaried employees of the Company.

 

8.5 Termination
Upon the Disability of the Executive. Upon a termination of the Executive’s employment hereunder in accordance with the terms
and provisions of Section 7.6, the Company shall have no further liability or obligation to the Executive, except that the Executive
shall be entitled to receive (a) all Accrued Total Compensation and Benefits calculated through the date such termination is effective,
and (b) the payments provided under any group disability benefit insurance policy, if any, which may be in effect generally for the benefit
of all full-time salaried employees of the Company. Notwithstanding the termination of Executive’s employment, the Executive shall
continue to be bound by the terms and provisions of Sections 10, 11, 12, 13 and 14 in accordance with their terms.

 

8.6 Termination
Upon Expiration of Initial Term or Renewal Term.

 

(a) Upon
a termination of the Executive’s employment hereunder in accordance with the terms and provisions of Section 7.7, the Executive
shall be entitled to receive all Accrued Total Compensation and Benefits calculated through the date such termination is effective, and
all stock options due to vest within 6 months after the termination under this subsection shall immediate vest and be exercisable for
two years following termination.

 

(b)
Notwithstanding the termination of Executive’s employment, the Executive shall continue to be bound by the terms and provisions
of Sections 10, 11, 12, 13 and 14 in accordance with their terms.

 

9. Representations
and Warranties by the Executive. The Executive hereby represents and warrants to the Company that the execution and delivery by the
Executive of this Agreement do not, and the performance by the Executive of the Executive’s obligations hereunder will not, with
or without the giving of notice or the passage of time, or both: (a) violate any judgment, writ, injunction or order of any court, arbitrator
or governmental agency applicable to the Executive, or (b) conflict with, result in a breach of the provisions of or the termination
of, or constitute a default under, any agreement to which the Executive is a party or by which the Executive is or may be bound.

 

10.
Inventions and Confidential Information. The Executive hereby covenants, agrees and acknowledges that employment under this Agreement
is pursuant to execution of the Company’s form of Proprietary Information and Inventions Assignment Agreement (“PIIA”),
which requires, among other things, the assignment of rights to any company related invention made during your employment at Company
and non-disclosure of proprietary information.

 

11.
Non-Competition.

 

11.1 Executive
agrees that they will not, during the term of their employment and for a period of twelve (12) months after the termination of their
employment for any reason whatsoever, unless acting with the prior written consent of the Company, directly or indirectly, own, manage,
operate, join, control, finance or participate in the ownership, management, operation, control or financing of, or be connected as an
officer, director, employee, partner, principal, agent, representative, consultant or otherwise with, any business or enterprises which
directly competes with the Company and which engages in the activities engaged in by the Company (the “Prohibited Activities”).
This Section 11 shall not be construed to prohibit the ownership of not more than 1% of the capital stock of any corporation having a
class of securities registered pursuant to the Securities Exchange Act of 1934.

 

12.
No Solicitation.

 

12.1  The Executive agrees that they will not, for a period of twelve (12) months after the termination
of their employment hereunder, solicit for employment, either directly or indirectly, any person, who was, during the Employment Period,
an employee of the Company.

 

    	 

    	 

    

 

12.2 The
Executive agrees that they will not, for a period of twelve (12) months after the termination of their employment hereunder, directly
call on or solicit any person, firm, corporation or other entity who or which was, during the last twelve (12) months of the Employment
Period, a customer, client or prospective client of the Company (herein referred to as the “Client”), if a principal purpose
of such contact or solicitation is to solicit (i) specific business or projects that were ongoing or in discussion with such Client and
the Company as of the date of the termination of the Executive’s employment hereunder, or (ii) other specific business or projects
for such Client for which all of the following are the same as for the specific business or projects that were ongoing or in discussion
with such Client and the Company as of the date of termination of the Executive’s employment hereunder.

 

13.
Equitable Relief.

 

13.1  The Executive acknowledges that the restrictions contained in Sections 10, 11 and 12 hereof
are reasonable and necessary to protect the legitimate interest of the Company, that the Company would not have entered into this Agreement
in the absence of such restrictions, and that violation of any provision of those Sections (which has not previously terminated or been
waived) will result in irreparable injury to the Company. The Executive also acknowledges that the Company shall be entitled to preliminary
and permanent injunctive relief, without the necessity of proving actual damages, as well as an equity accounting of all earnings, profits
and other benefits arising from any such violation, which rights shall be cumulative and in addition to any other rights or remedies
to which the Company may be entitled. In the event that the provisions of any of Section 10, 11, or 12 hereof should ever be adjudicated
to exceed the time, geographic or other limitations permitted by applicable law in any jurisdiction, then such provisions shall be deemed
reformed in such jurisdiction to the maximum time, geographic or other limitations permitted by applicable law.

 

14.
Notices.

 

14.1  Any notice required or permitted under this Agreement shall be in writing and sent by United
States first class mail, by certified mail, return receipt requested, by facsimile or by hand delivery to the parties at their respective
addresses set forth below or at such other address as the parties may designate by notice from time to time:

 

If
to the Company:

 

		QSAM
  Biosciences, Inc.
	 	9442
  Capital of Texas Hwy N, Plaza 1, Suite 500
		Austin,
  TX 78759
		Attn:
  Chief Executive Officer or General Counsel

 

If
to the Executive:

 

		Adam
  King
		[address
  omitted]

 

15.
Arbitration.

 

15.1 Any controversy or claim arising from, or relating to, this Agreement, or the breach hereof,
shall be settled by arbitration in accordance with the Model Employment Arbitration procedures of the American Arbitration Association,
and judgement upon the award rendered by a panel of three (3) arbitrators may be entered in any court having jurisdiction thereof. The
arbitrators shall commence the hearing not later than sixty (60) days after the demand unless the parties agree otherwise in writing.
Arbitration under this Agreement shall take place in Travis County, Texas.

 

16.
Entire Agreement.

 

16.1  With the exception outlined in Section 4.3, This Agreement supersedes any and all prior Agreements
or arrangements between the parties with respect to the employment of the Executive by the Company and sets forth the entire Agreement
between the parties with respect to the subject matter hereof, and it may be amended only by a written document signed by both parties
to this Agreement.

 

    	 

    	 

    

 

17.
Successors and Assigns.

 

17.1
This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their heirs, personal representatives,
successors and assigns; provided that the Executive’s duties hereunder are of a personal nature and may not be
assigned.

 

18.
Governing Law.

 

18.1 This Agreement shall be governed by and construed in accordance with the laws of the State
of Texas

 

19.
Counterparts.

 

19.1 This Agreement may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same Agreement.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.

 

	 	QSAM Biosciences, Inc.
	 	 	 
	 	By:	/s/
    Douglas Baum
	 	 	Douglas Baum, Chief Executive Officer
	 	 	 
	 	THE EXECUTIVE
	 	 	 
	 	/s/ Adam King
	 	Adam King

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