Document:

Exhibit

EXHIBIT 10.7

FHLBANK SAN FRANCISCO

EXECUTIVE INCENTIVE PLAN

as Amended and Restated March 29, 2019

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
	2
	

	Section 3.3
	Vesting of Awards for Participants
	3
	

	Section 3.4
	Gap Year Awards for Participants
	4
	

	Section 3.5
	Effect of Termination of Employment
	5
	

	Section 3.6
	Effect of Change in Control
	8
	

	Section 3.7
	Payment of Awards
	8
	

	Section 3.8
	Reduction or Forfeiture of Awards
	9
	

	 
	 
	 

	Article IV
	ADMINISTRATION
	10
	

	 
	 
	 

	Section 4.1
	Appointment of the President and CEO
	10
	

	Section 4.2
	Powers and Responsibilities of the Administrator
	10
	

	Section 4.3
	Income and Employment Tax Withholding
	11
	

	Section 4.4
	Plan Expenses
	11
	

	 
	 
	 

	Article V
	BENEFIT CLAIMS
	11
	

	 
	 
	 

	Article VI 
	AMENDMENT AND TERMINATION OF THE PLAN
	11
	

	 
	 
	 

	Section 6.1
	Amendment of the Plan
	11
	

	Section 6.2
	Termination of the Plan
	11
	

	 
	 
	 

	Article VII
	MISCELLANEOUS
	12
	

	
			
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	Section 7.1
	Governing Law
	12
	

	Section 7.2
	Headings and Gender
	12
	

	Section 7.3
	Spendthrift Clause
	12
	

	Section 7.4
	Counterparts
	12
	

	Section 7.5
	No Enlargement of Employment Rights
	12
	

	Section 7.6
	Limitations on Liability
	12
	

	Section 7.7
	Incapacity of Participant
	13
	

	Section 7.8
	Evidence
	13
	

	Section 7.9
	Action by Bank
	13
	

	Section 7.10
	Severability
	13
	

	Section 7.11
	Information to be Furnished by a Participant
	13
	

	Section 7.12
	Attorneys’ Fees
	13
	

	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

	
			
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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 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.

	
			
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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 3.3(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.  Participants are eligible to receive Awards for each Performance Period, subject to deferral of fifty percent (50%) of the Annual Award (the Deferred Award) over the Deferral Performance Period.
(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, 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.

	
			
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(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.  Four achievement levels will be defined for each Performance Goal in determining how much of an Award is earned.
(i)    Threshold (75% of Target).  Minimum level of performance that must be achieved for awards to be paid.
(ii)    Meets (Target – 100% of Plan).  Performance that is expected under the Bank’s Plan.
(iii)    Exceeds (125% of Target). An optimistic achievement level that exceeds expected performance.
(iv)    Far Exceeds (150% of Target).  The most optimistic achievement level that far exceeds expected performance.
(c)    Interpolation.  Achievement levels between Threshold – Target; Target – Exceeds; and, Exceeds – Far Exceeds 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.  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 (an “Annual 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 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 (a “Deferred Award”):
(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 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 an annual compounding interest rate of 6% is applied to Deferred Awards.
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:

	
			
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(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 amount.
(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 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;

	
			
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(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).
(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:

	
			
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(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.
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 

	
			
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(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 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.
(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)).

	
			
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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.
(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 

	
			
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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 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 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.

	
			
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(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 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 94120.
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.

	
			
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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 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.

	
			
	3/29/2019
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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.  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.

	
			
	3/29/2019
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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.

	
			
	3/29/2019
	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

	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 12/23/2016
	1
	 

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 12/23/2016
	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 12/23/2016
	 
	 

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 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

	
			
	Approved 12/23/2016
	1
	 

(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, 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.

	
			
	Approved 12/23/2016
	2
	 

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 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).

	
			
	Approved 12/23/2016
	3
	 

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 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.

	
			
	Approved 12/23/2016
	4
	 

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 12/23/2016
	5
	 

	
								
	FEDERAL HOME LOAN BANK OF SAN FRANCISCO

Executive Incentive Plan
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 12/1/2017
	 
	Page 1

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 12/1/2017
	 
	Page 2

FEDERAL HOME LOAN BANK OF SAN FRANCISCO

Executive Incentive Plan
APPENDIX V

2019 Performance Period Goals, Qualifiers & Awards Scale	
								
	2019 Goals
	2019 Goal Components
	Goal Weight
	Goal Component Weight
	2019 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.

	 
	A) Cyber-Security Threat Management
	 
	 
	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 enhancements that focuses on use of business impact analysis of disruption to refine Business Continuity Plan (BCPs) to address critical business processes. Test BCPs against failover of the applications and servers business process is dependent upon. Focus on fail over triggers and critical vendors.

	B) Risk Management Practices and Credit Underwriting Framework
	 
	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 12/7/2018
	 
	Page 1

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

	
								
	2019 Goals
	2019 Goal Components
	Goal Weight
	Goal Component Weight
	2019 Goal Measures

	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 Enhancements, 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 12/7/2018
	 
	Page 2

FEDERAL HOME LOAN BANK OF SAN FRANCISO
Executive Incentive Plan
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.”

	
			
	Approved 1/31/20
	 
	Page 1

	
								
	Goals
	Goal Components
	Goal
Weight
	Goal Component Weight
	Goal Measures

	 
	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.

	 
	 
	 
	 
	 
	 
	 
	 

	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%
	 
	 

	
			
	Approved 1/31/20
	 
	Page 2

	
								
	Goals
	Goal Components
	Goal
Weight
	Goal Component Weight
	Goal Measures

	 
	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.

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
	 
	Page 3Exhibit

FEDERAL HOME LOAN BANK OF SAN FRANCISCO
DEFERRED COMPENSATION PLAN

(Successor Plan to the Original Federal Home Loan Bank of San Francisco 
Deferred Compensation Plan)

Amended and Restated Effective January 1, 2020

	
			
	Approved July 26, 2019

	 
	 

TABLE OF CONTENTS	
				
	INTRODUCTION
	 
	1
	

	 
	 
	 

	ARTICLE 1. DEFINITIONS
	 
	3
	

	1.01    Act
	 
	3
	

	1.02    Administrator
	 
	3
	

	1.03    Beneficiary
	 
	3
	

	1.04    Benefit Account
	 
	3
	

	1.05    Board
	 
	4
	

	1.06    Cash Balance Plan
	 
	4
	

	1.07    Change in Control
	 
	4
	

	1.08    Code
	 
	4
	

	1.09    Company
	 
	4
	

	1.10    Company Contributions
	 
	4
	

	1.11    Company Supplemental Cash Balance Benefit
	 
	4
	

	1.12    Compensation
	 
	4
	

	1.13    Deferral Election
	 
	5
	

	1.14    Deferral Period
	 
	5
	

	1.15    Director shall mean any member of the Company Board
	 
	6
	

	1.16    Disability or Disabled
	 
	6
	

	1.17    Early Retirement Age
	 
	6
	

	1.18    Early Retirement Date
	 
	6
	

	1.19    Employee
	 
	6
	

	1.20    Normal Retirement Age
	 
	6
	

	1.21    Participant
	 
	6
	

	1.22    Performance-Based Compensation
	 
	6
	

	1.23    Plan
	 
	7
	

	1.24    Plan Year
	 
	7
	

	1.25    Retirement
	 
	7
	

	1.26    Retirement Committee
	 
	8
	

	1.27    Savings Plan
	 
	8
	

	1.28    ‘Spouse’ means:
	 
	8
	

	1.29    Stated Deferral
	 
	8
	

	1.30    Termination of Employment
	 
	8
	

	1.31    Unforeseeable Emergency
	 
	10
	

	 
	 
	 

	ARTICLE 2. ELIGIBILITY AND PARTICIPATION
	 
	10
	

	2.01    Enrollment Procedures
	 
	10
	

	2.02    Enrollment Time Period for Newly Eligible Employee/Director
	 
	11
	

	2.03    Annual Enrollment Period for each Plan Year
	 
	11
	

	2.04    Failure of Eligibility
	 
	11
	

	 
	 
	 

	ARTICLE 3. PARTICIPANT COMPENSATION DEFERRAL
	 
	12
	

	3.01    Procedure for Deferral
	 
	12
	

	3.02    Performance-Based Compensation
	 
	12
	

	3.03    Election Choices
	 
	13
	

	
			
	Approved July 26, 2019

	i
	 

	
				
	3.04    Election to Defer Irrevocable; Exception
	 
	13
	

	 
	 
	 

	ARTICLE 4. COMPANY SUPPLEMENTAL CASH BALANCE BENEFITS AND COMPANY CONTRIBUTIONS
	 
	13
	

	4.01    Company Supplemental Cash Balance Benefits
	 
	13
	

	4.02    Company Contributions
	 
	14
	

	4.03    Life Insurance and Annuity
	 
	14
	

	4.04    Company Supplemental Cash Balance Benefit Statement
	 
	15
	

	 
	 
	 

	ARTICLE 5. PARTICIPANT BENEFIT ACCOUNT AND VESTING
	 
	15
	

	5.01    Benefit Account
	 
	15
	

	5.02    Statement of Account
	 
	16
	

	5.03    Vesting of Benefit Account
	 
	16
	

	 
	 
	 

	ARTICLE 6. PAYMENT OF BENEFITS
	 
	16
	

	6.01    Payment of Company Supplemental Cash Balance Benefits
	 
	16
	

	6.02    Payment of Stated Deferrals and Company Contributions Related Thereto
	 
	17
	

	6.03    Timing of Payments and Installment Payments
	 
	18
	

	6.04    Modifications
	 
	18
	

	6.05    Special Election for Company Supplemental Cash Balance Benefits
	 
	19
	

	6.06    Benefits upon Termination of Employment
	 
	19
	

	6.07    Benefits Upon Death from Benefit Account
	 
	19
	

	6.08    Benefits Upon Death for Company Supplemental Cash Balance Benefit
	 
	20
	

	6.09    Company Supplemental Cash Balance Benefit and Reemployment
	 
	21
	

	6.10    Unforeseeable Emergency
	 
	21
	

	6.11    Prohibition on Acceleration
	 
	21
	

	6.12    Permissible Payment Delays
	 
	22
	

	6.13    Company Obligations and Source of Payments
	 
	22
	

	6.14    Limited Amount Cashout
	 
	23
	

	 
	 
	 

	ARTICLE 7. ADMINISTRATION OF THE PLAN
	 
	24
	

	7.01    Retirement Committee
	 
	24
	

	7.02    Advisors to the Retirement Committee; Reports to the Board of Directors
	 
	24
	

	7.03    Membership of the Retirement Committee
	 
	25
	

	7.04    Retirement Committee Procedures
	 
	25
	

	7.05    Expenses of the Retirement Committee
	 
	26
	

	7.06    Claims for Benefits
	 
	26
	

	 
	 
	 

	ARTICLE 8. MISCELLANEOUS
	 
	27
	

	8.01    Employment Not Guaranteed by Plan
	 
	27
	

	8.02    Amendment and Termination
	 
	27
	

	8.03    Change in Control
	 
	28
	

	8.04    Dissolution or Bankruptcy
	 
	28
	

	8.05    Assignment of Benefits
	 
	28
	

	8.06    Facility of Payment
	 
	29
	

	8.07    Disposition of Unclaimed Payments
	 
	29
	

	8.08    Taxes
	 
	30
	

	
			
	Approved July 26, 2019

	ii
	 

	
				
	8.09    Independence of Benefits
	 
	30
	

	8.10    Governing Law
	 
	30
	

	8.11    Form of Communication
	 
	31
	

	8.12    Severability
	 
	31
	

	8.13    Binding Agreement
	 
	31
	

	8.14    Gender; Singular and Plural
	 
	32
	

	8.15    Captions
	 
	32
	

	8.16    Responsibility and Indemnification of Retirement Committee Members
	 
	32
	

	
			
	Approved July 26, 2019

	iii
	 

FEDERAL HOME LOAN BANK OF SAN FRANCISCO
DEFERRED COMPENSATION PLAN

(Successor Plan to the Original Federal Home Loan Bank of San Francisco 
Deferred Compensation Plan)
Amended and Restated Effective January 1, 2020

INTRODUCTION
Federal Home Loan Bank of San Francisco, incorporated under the laws of the United States, first established this Federal Home Loan Bank of San Francisco Deferred Compensation Plan, effective as of the first day of January 2005, to provide payments to certain of its key management employees and directors with benefits upon retirement, death, Disability, Termination of Employment, or upon other permitted reasons or dates, for the purpose of promoting in its key management employees and directors the strongest interest in the successful operation of the Company and to induce such persons to remain in the employ of the Company.  This Plan has been amended and restated, effective January 1, 2009.  Between January 1, 2005 and December 31, 2008, the Plan operated in good faith compliance with the guidance issued under Section 409A of the Code. The Plan is the successor plan to the Original Federal Home Loan Bank of San Francisco Deferred Compensation Plan (the “Prior Plan”).  Effective December 31, 2004, the Prior Plan was frozen and no new benefits shall be earned or vest under it;  provided, however, that any benefits earned and vested under the Prior Plan before January 1, 2005 shall continue to be governed by the terms and conditions of the Prior Plan as in effect on December 31, 2004.  Any benefits earned and vested under the Prior Plan after December 31, 2004 are deemed to have been earned and vested under this Plan, as it may be amended from time to time.

	
			
	Approved July 26, 2019

	1
	 

On July 25, 2019, the Board of Directors of the Company approved expanding eligibility under the Plan to all common law employees effective January 1, 2020.  The Plan has been amended and restated effective January 1, 2020, to reflect this expanded eligibility, to incorporate the terms of the 2010 and 2013 amendments to the Plan and to add other revisions that have been approved by the Retirement Committee of the Company, including but not limited to cashout provisions for small benefit amounts and a more flexible time period for payments to beneficiaries.
This Plan is intended to meet the requirements of Code Section 409A and the Treasury Regulations issued thereunder.

	
			
	Approved July 26, 2019

	2
	 

Article 1.  DEFINITIONS
1.01    Act means the American Jobs Creation Act of 2004, as amended.
1.02    Administrator means the Retirement Committee or such other person, company or entity as may be designated from time to time by the Retirement Committee except as otherwise provided herein.
1.03    Beneficiary shall mean any person, persons or entities designated by a Participant to receive benefits hereunder upon the death of such Participant.  Each Participant shall file with the Company a designation of Beneficiary and contingent Beneficiary to whom the Participant’s interest under the Plan shall be paid in the event of the Participant’s death pursuant to a method and in the form approved from time to time by the Company whether pursuant to a written document or an online system approved by the Company.  Such designation may be changed by the Participant at any time and without the consent of any previously designated Beneficiary.  A Beneficiary designation will not become effective unless it is made by the method and in the form designated by the Company, whether in written form or an online system, and it must be received by the Company prior to the Participant’s death.  In the absence of any effective Beneficiary designation as to any portion of a Participant’s interest under the Plan, such amount shall be paid to the Participant’s surviving spouse, or if there is none, to the Participant’s surviving children and issue of deceased children by right of representation, or if there be none, the Participant’s surviving parents and if none, according to the laws of descent and distribution of the State of California.
1.04    Benefit Account shall mean the account(s) maintained on the books of the Company for each Participant pursuant to Section 5.01 hereof.

	
			
	Approved July 26, 2019

	3
	 

1.05    Board means the Board of Directors of the Company, as constituted from time to time.
1.06    Cash Balance Plan shall mean the Federal Home Loan Bank of San Francisco Cash Balance Plan, a qualified pension plan and tax-exempt trust under Sections 401(a) and 501(a) of the Code.
1.07    Change in Control means a transaction described in 12 United States Code Section 1446(26), so long as that transaction also qualifies as a change in ownership or effective control or a change in ownership of a substantial portion of assets under Code Section 409A and the regulations promulgated thereunder.
1.08    Code means the Internal Revenue Code of 1986, as amended.
1.09    Company means the Federal Home Loan Bank of San Francisco.
1.10    Company Contributions shall mean the contributions made by the Company pursuant to Section 4.02.
1.11    Company Supplemental Cash Balance Benefit shall mean the benefit described in and payable pursuant to Section 4.01.
1.12    Compensation shall mean the base salary and other wages, bonuses, commissions, overtime pay, shift premiums, vacation accruals, and other taxable remuneration payable by the Company to an Employee or Director for services rendered to the Company, including fees paid to directors of the Company, for the Plan Year or other period taken into account in making the determination. Compensation shall not include employee expense reimbursements and allowances, and contributions made by the Company under the Plan, moving expenses, fringe benefits, payments made by the Company for group insurance,

	
			
	Approved July 26, 2019

	4
	 

hospitalization, disability and like benefits, or contributions made by the Company under or distribution from any other employee benefits plan the Company maintains.  Notwithstanding the foregoing, for purposes of Participant Stated Deferrals under Article 3, Compensation shall include long-term incentive payments; provided, however, that for purposes of Company Supplemental Cash Balance Benefits and Company Contributions under Article 4, Compensation shall not include long-term incentive payments.  Any deferred compensation payments under this Plan as well as any amounts deferred shall not be deemed salary or other remuneration to the Participant eligible for computation of benefits to which he may be entitled under the Cash Balance Plan, the Savings Plan, the Financial Institutions Retirement Fund (as adopted by the Company), the Financial Institutions Thrift Plan (as adopted by the Company) or the Federal Home Loan Bank of San Francisco Benefit Equalization Plan, or any other qualified or nonqualified retirement plan of the Company (except for the Supplemental Executive Retirement Plan) for the benefit of its employees.
1.13    Deferral Election shall mean one or more elections made pursuant to an online system approved by the Company with respect to amount of Compensation deferred in a Plan Year, the applicable Deferral Period, form of payment of such deferred Compensation and related earnings crediting options, and permitted earnings crediting options made available by the Company, and for Plan Years that begin prior to January 1, 2020, a written agreement between a Participant and the Company, whereby a Participant agrees to defer a portion of his Compensation pursuant to the provisions of the Plan, and the Company agrees to make benefits payments in accordance with the provisions of the Plan.
1.14    Deferral Period shall mean the period of time during which Compensation is being deferred pursuant to the Participant’s Deferral Elections  and Article 3 of the Plan.

	
			
	Approved July 26, 2019

	5
	 

1.15    Director shall mean any member of the Company Board.
1.16    Disability or Disabled means that a Participant:
(i)    is 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 12 months; or
(ii)    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 12 months, receiving income replacement benefits for a period of not less than 3 months under any accident and health plan covering employees of the Participant’s employer.  The determination of the existence of a Disability shall be made by the Company in accordance with Code Section 409A.
1.17    Early Retirement Age shall mean age 45.
1.18    Early Retirement Date shall mean the first day of the month coincident with or next following the date a Participant attains Early Retirement Age.
1.19    Employee shall mean any common law employee who is on the payroll of the Company.
1.20    Normal Retirement Age shall mean age 65.
1.21    Participant shall mean an Employee or Director of the Company who has properly  and timely completed Deferral Elections to deferred Compensation under the Plan and satisfied any and all other requirements set forth in the Plan.
1.22    Performance-Based Compensation means Compensation based on services performed over a period of not less than twelve months and which meets the following

	
			
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requirements: (i) the payments of Compensation or the amount of the Compensation is contingent upon satisfaction of pre-established organizational or individual performance criteria; and (ii) the performance criteria are not substantially certain to be met at the time the Participant elects to defer compensation in accordance with Section 3.  Organizational or individual performance criteria are considered pre-established if established in writing not later than ninety (90) days after the commencement of the period of service to which the criteria relates, provided that the outcome is substantially uncertain at the time the criteria are established.  Performance criteria may be subjective but such criteria must be bona fide and relate to the performance of the Participant, a group of employees that includes the Participant or a business unit (which may include the Company) for which the Participant provides services.  The determination whether any subjective performance criteria have been satisfied shall not be made by the Participant, by a family member of the Participant or any spouse of any family member of the Participant or any person who is under effective control, or whose Compensation is under the effective control, of the Participant or of any family member of the Participant.  Performance-Based Compensation does not include any amount or portion of any amount that will be paid regardless of performance or which is based on a level of performance that is substantially certain to be met at the time the criteria is established.
1.23    Plan shall mean the Deferred Compensation Plan, Federal Home Loan Bank of San Francisco, as amended and restated effective January 1, 2020.
1.24    Plan Year shall mean the twelve-month period on which the plan records are kept, which shall begin on January 1 of one year and end on December 31 of the same year.
1.25    Retirement shall mean a Participant’s Termination of Employment after reaching Early or Normal Retirement Age, or, in the case of a director, the termination of his

	
			
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membership on the Board, irrespective of age.  “Normal Retirement” shall mean Retirement at or after Normal Retirement Age and “Early Retirement” shall mean Retirement at or after Early Retirement Age but before Normal Retirement Age.  (The terms “Normal Retirement” and “Early Retirement” are not relevant to individuals who qualify as a Participant solely because of their status as a member of the Board of Directors of the Company.)
1.26    Retirement Committee shall mean the committee appointed pursuant to Article 7 of the Plan.
1.27    Savings Plan means the Federal Home Loan Bank of San Francisco Savings Plan, a qualified defined contribution plan and tax-exempt trust under sections 401(a) and 501(a) of the Code.
1.28    ‘Spouse’ means: 
		
	(a)
	The person to whom a Participant is legally married under the laws of any state or other jurisdiction; or 

		
	(b)
	The person of the same gender as the Participant with whom the Participant has entered into a valid domestic partnership pursuant to the laws of the State of California.

All uses of the word ‘spouse’ (including a surviving spouse) in this Plan document  are deemed to be capitalized and to refer to this defined term ‘Spouse.’ 
1.29    Stated Deferral shall mean the amount of Compensation the Participant agrees to defer in pursuant to a Deferral Election.
1.30    Termination of Employment shall mean the Participant’s ceasing to be employed in any capacity by the Company, and in the case of a director, ceasing to be a member of the Company’s Board of Directors, as applicable, for any reason whatsoever, voluntary or involuntary, including by reason of death.

	
			
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Whether a Termination of Employment has occurred is based on whether the facts and circumstances indicate that the Participant and the Company 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 Company as an employee, independent contractor or otherwise, and if the Participant is providing such services at an annual rate that is fifty percent or more of the services rendered, on average, during the immediate preceding 36 months of employment with the Company (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 Company is reduced to an annual rate that is less than twenty percent of the services rendered, on average, during the immediately preceding 36 months of employment with the Company (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 months, or if longer, so long as the Participant’s right to reemployment with the Company is provided by either statute or contract.  If the period of leave exceeds six months and the Participant’s right to reemployment is not provided by either statute or contract, then the employee is deemed to have a Termination of Employment on the first day immediately following such six-month period.
For the purposes of this Section 1.28 only, the term Company includes Federal Home Loan Bank of San Francisco and its entire controlled group within the meaning of Code Section 414(b) and 414(c), using the 80% standard instead of the 50% standard outlined in Treasury Regulations interpreting Code Section 409A.

	
			
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1.31    Unforeseeable Emergency means a severe financial hardship to the Participant resulting from:
(i)    An illness or accident of the Participant, the Participant’s spouse, the Participant’s Beneficiary or the Participant’s dependent (as defined in Section 152 of the Code, without regard to Sections 152(b)(1), (b)(2), and (d)(1)(B) of the Code);
(ii)    Loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance); or
(iii)    Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.
A hardship shall not constitute an Unforeseeable Emergency under the Plan to the extent that it is, or may be, relieved by:
(i)    Reimbursement or compensation, by insurance or otherwise; or
(ii)    Liquidation of the Participant’s assets to the extent that the liquidation of such assets would not itself cause severe financial hardship; or
(iii)    Cessation of deferrals under the Plan.
ARTICLE 2.  ELIGIBILITY AND PARTICIPATION
2.01    Enrollment Procedures  Employees and Directors may enroll in the Plan by: (1) making Deferral Elections, which shall specify the amount of deferral, the timing of the distributions, the form of the distributions, and type of benefit under this Plan that will be provided for such Employee or Director, and (2) completing such other forms and furnishing such other information as the Company may reasonably require.  Each newly eligible Employee 

	
			
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or Director shall be notified by the Administrator, in writing or by electronic notice, of his eligibility to participate in the Plan prior to the end of his enrollment period (as described below).
2.02    Enrollment Time Period for Newly Eligible Employee/Director  To participate in the Plan during the Plan Year in which an Employee or Director first qualifies as such, he must make Deferral Elections for such Plan Year within 30 days after he first becomes an Employee or Director and the Deferral Elections must become irrevocable (except in the event of an Unforeseeable Emergency) at the end of that 30-day period.
2.03     Annual Enrollment Period for each Plan Year  Except as provided above in Section 2.02, in order for an Employee, Director or Participant to participate in the Compensation deferral portion of the Plan each Plan Year, he must timely complete appropriate Deferral Elections regarding Compensation for a Plan Year, which shall become irrevocable (except in the event of an Unforeseeable Emergency) no later than the December 31 preceding the January 1 of the Plan Year in which the Deferral Elections are to be effective.  To defer Performance-Based Compensation, the Employee or Director must execute a Stated Deferral election on the form prescribed by the Company and within the time period described in Section 3.02.
2.04    Failure of Eligibility  A Participant shall cease to be a Participant at Termination of Employment or, if earlier, when the Participant ceases to qualify as an Employee or Director (unless the Participant qualifies for the payment of benefits set forth in Article 6).  A person who ceases to be a Participant during a Plan Year will have no further right to defer Compensation during the Deferral Period.

	
			
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ARTICLE 3.  PARTICIPANT COMPENSATION DEFERRAL
3.01    Procedure for Deferral  The Employee or Director may make an initial election to defer a portion of his Compensation earned and payable on or after the date of such election and before the commencement of the pay period in which the election becomes effective by timely making Deferral Elections during the time period described in Sections 2.02 or 2.03, as applicable.  For any deferral of Compensation, the Deferral Election must apply only to Compensation earned after the date the election is irrevocable.  The amount deferred shall be subtracted from the Compensation otherwise payable to the Participant during the year of deferral.  Unless otherwise permitted by the Company under Section 3.04 of the Plan, the deferral specified in the Deferral Election shall be credited under this Plan, and the Participant’s Compensation shall be correspondingly reduced.
3.02    Performance-Based Compensation  Any election made by a Participant to defer Performance-Based Compensation must be submitted to the Administrator: (1) in accordance with Sections 2.02 and 2.03 and (2) no later than six months prior to the end of the period in which the services which give rise to the payment of Performance-Based Compensation are performed and provided that the Participant performs services continuously from the later of the beginning of the performance period or the date the performance criteria are established through the date the election to defer such Performance-Based Compensation is made and provided that in no event can such an election be made after the date such Performance-Based Compensation has become readily ascertainable.  A Deferral Election under this Section 3.02 will not become irrevocable prior to the date that is six months prior to the end of the applicable performance period.

	
			
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3.03    Election Choices  At the time that a Participant elects to defer a portion of his Compensation, the Participant shall make a Deferral Election in the manner prescribed by the Company to select one or more mutual funds or other investment choices from a list provided to the Participant by the Company.  The value of the selected investments shall determine the value of the Participant’s Benefit Account as of any given date.  The Participant may change his selected investments prospectively at such times and with such frequency as the Company shall prescribe. 
3.04    Election to Defer Irrevocable; Exception  Except as otherwise provided herein, a Participant’s election to defer Compensation shall be irrevocable except for prospective changes allowed prior to each January 1.  The Administrator, in its sole discretion, upon demonstration by the Participant of Unforeseeable Emergency, will suspend the Participant’s election to defer Compensation.  Such suspension shall continue through the end of the Plan Year in which the Participant applies for, and receives, a distribution due to an Unforeseeable Emergency and the Participant must submit a new Deferral Election and satisfy any other requirements prescribed by the Company, in its sole discretion, in order to participate again in the Plan.
ARTICLE 4.  COMPANY SUPPLEMENTAL CASH BALANCE BENEFITS
AND COMPANY CONTRIBUTIONS
4.01    Company Supplemental Cash Balance Benefits  The Company shall provide to each Participant a Company Supplemental Cash Balance Benefit in an amount equal to the additional benefit, if any, that would have been payable under the Cash Balance Plan and the Federal Home Loan Bank of San Francisco Benefit Equalization Plan (if any) if the Participant had not reduced his Compensation for that Plan Year by the Stated Deferrals.  This amount shall 

	
			
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be decreased by the applicable amount that is payable to the Participant, if any, under Article 4 of the Prior Plan (i.e., the Prior Plan provision regarding the Company Supplemental Pension Benefit under the Cash Balance Plan or the Financial Institutions Retirement Fund) (the “Prior Plan Benefit”).  The Prior Plan Benefit shall be calculated in accordance with Treasury Regulation Section 1.409A-6(a)(3).  The Prior Plan Benefit cannot be calculated in any manner other than the manner set forth in Treasury Regulation Section 1.409A-6(a)(3).  A Participant’s Company Supplemental Cash Balance Benefit will vest within the same time periods as a Participant’s benefits vest under the Cash Balance Plan.
4.02    Company Contributions  For each Plan Year, the Company shall credit to each Participant’s Benefit Account an amount equal to the additional matching contribution the Company would have contributed to the Savings Plan on behalf of the Participant if the Participant had not reduced his Compensation for that Plan Year by the Stated Deferrals.  Notwithstanding the foregoing, no amount shall be credited to a Participant’s Account unless consistent with the limitations in Treasury Regulation Section 1.409A-2(a)(9); specifically, any Participant action or in action with respect to any deferrals or contributions under the Savings Plan: (a) shall not result in any given Plan Year in an increase in the amounts deferred for such Participant under all nonqualified deferred compensation plans of the Company in excess of the limitations in Code Section 402(g)(1)(A), (B) or (C) in the Plan Year of such Participant’s action or inaction under the Savings Plan and (b) shall not result in any Plan Year in an increase in any matching or contingent Company contributions exceeding 100% of the matching or contingent amounts that would be provided under the Savings Plan absent any Code limitations.
4.03    Life Insurance and Annuity  The Company in its sole discretion may apply for and procure as owner and for its own benefit, insurance and annuities on the life of a Participant 

	
			
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in such amounts and in such forms as the Company may choose.  The Participant shall have no interest whatsoever in any such policy or policies, but at the request of the Company shall submit to medical examinations and shall accurately and truthfully supply such information and execute such documents as may be required by the insurance company or companies to whom the Company has applied for insurance.  Any insurance policy and annuity acquired by or held by the Company in connection with the liabilities assumed by it pursuant to the Plan shall not be deemed to be held under any trust for the benefit of the Participant, the Participant’s beneficiary or estate, or to be security for the performance of the obligations of the Company but shall be and remain, a general, unpledged and unrestricted asset of the Company.
4.04    Company Supplemental Cash Balance Benefit Statement  Periodically, the Company or its designee may provide to each Participant a statement in such form as the Company deems desirable setting forth the Participant’s Company Supplemental Cash Balance Benefit.
ARTICLE 5:  PARTICIPANT BENEFIT ACCOUNT AND VESTING
5.01    Benefit Account
(a)    The Company shall establish a Benefit Account on its books for each Participant.  A Participant’s Benefit Account shall be utilized solely as a device for the measurement and determination of the amounts to be paid to the Participant pursuant to this Plan attributable to the Participant’s Stated Deferrals and the Company Contributions related thereto.  A Participant’s Benefit Account shall not constitute or be treated as a trust fund of any kind for the benefit of the Participant, the Participant’s Beneficiary or estate, or to be security for the performance of obligations of the Company but shall be and remain a general, unpledged and 

	
			
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unrestricted asset of the Company.  All benefits payable under this Plan shall be paid as they become due and payable by the Company out of its general assets.  The Company Contributions related to Stated Deferrals will be credited as of the date when a matching contribution otherwise would have been allocated to the Participant’s account under the Savings Plan.
(b)    Each Benefit Account shall be revalued daily to be credited or debited with investment earnings, gains and losses based upon the performance of the investment funds selected by the Participant from time to time pursuant to Section 3.03.
(c)    Each Benefit Account shall be debited as of the date of distribution by the amount of any distribution made from such Benefit Account.
5.02    Statement of Account  The Company may provide to each Participant a quarterly statement in such form as the Company deems desirable setting forth the balance in the Participant’s Benefit Account.
5.03    Vesting of Benefit Account  All amounts credited to a Participant’s Benefit Account shall be one hundred percent (100%) vested at all times.
ARTICLE 6.  PAYMENT OF BENEFITS
6.01    Payment of Company Supplemental Cash Balance Benefits  The Company Supplemental Cash Balance Benefits payable pursuant to Section 4.01 shall be payable in one of the forms allowed under the Cash Balance Plan (i.e., single lump sum, life annuity, or contingent 50% annuitant annuity) and upon Termination of Employment, a set time period after Termination of Employment, including upon becoming Disabled, a set age after Termination of Employment or death.  In the event the Participant is still employed at the time he first becomes Disabled, his payment shall commence once there has been a Termination of 

	
			
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Employment.  In the event the Participant elects a specified age as the time of payment but there as not been a Termination of Employment as of that date, his payment shall commence once there has been a Termination of Employment.  At the time of enrollment in the Plan, the Participant must elect the form of payment and the time of payment of Company Supplemental Cash Balance Benefit.  If no election is made, the benefit will be payable in the form of a lump sum benefit at Termination of Employment.  Notwithstanding Section 6.09, if the Participant elects to have the Company Supplemental Cash Balance Benefit payable at death, the Participant may specify the form of the distribution to be paid to his Beneficiary which may only be in a form available under the Cash Balance Plan and shall commence or be paid on the first day of the seventh whole month following the Participant’s death.  The Beneficiary may not change the form or time of the payment elected by the Participant.  Notwithstanding the foregoing, distributions of the Company Supplemental Cash Balance Benefit shall commence no later than the April 1 following the end of the calendar year in which a Participant reaches age 701⁄2, or, if later, upon the Participant’s Termination of Employment.  Accordingly, if a Participant elects death as the time of payment and the Participant survives the later of: (1) April 1 following the end of the calendar year in which the Participant attains age 70 1⁄2, or (2) April 1 following the end of the calendar year in which the Participant has a Termination of Employment, the Participant’s benefit shall be paid upon the later of those two events in the form of a lump sum benefit, unless the Participant timely elects a different form of benefit.  The amount of the benefit shall be determined by the Plan’s actuary utilizing the same actuarial factors and assumptions then used by the Cash Balance Plan.
6.02    Payment of Stated Deferrals and Company Contributions Related Thereto  The portion of a Participant’s Benefit Account attributable to the Stated Deferrals and Company

	
			
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Contributions related thereto shall be paid at the time or times specified in the Participant’s Stated Deferral election, except as provided below or in Sections 6.07 or 6.08.  Such election may provide for distribution in from one to ten annual installments commencing at Retirement, Disability, Termination of Employment, or on a specific date (including a date that occurs while the Participant is actively employed by the Company).  If no election is made, the benefit will be payable in the form of a lump sum benefit at Termination of Employment.
6.03    Timing of Payments and Installment Payments  A distribution of a benefit attributable to the Stated Deferrals and Company Contributions related thereto is available no sooner than one year after the close of the Deferral Period.  All payments made under the Plan shall be made within 90 days after the date elected by the Participant (or within 90 days after the date determined under the Plan, if no timely election is made by the Participant).  The Company, in its sole discretion, determines when during such 90-day period benefit payments will be made or commence.  If the Participant elected installment payments, after the first installment payment future installments shall be paid each year at approximately the same time of year as the first installment payment.  For purposes of the Plan, installment payments shall be treated as a single distribution under Section 409A of the Code.  Benefit Accounts subject to installment payouts shall continue to be adjusted for gains and losses in the same manner as active Benefit Accounts.  
6.04    Modifications  A Participant may modify his election made under Section 6.01 or Section 6.02 so long as: (a) the election will not take effect until at least twelve (12) months from the date on which the election is made, (b) if the election is to delay the start of payments on account of Termination of Employment or at a specified time, the payment must be deferred for a period of at least five (5) years from the date such payment would otherwise have been 

	
			
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made, and (3) if the election is related to a payment to be made at a specified time or pursuant to a fixed schedule, the election must be made at least twelve (12) months prior to the date the first amount was scheduled for payment.  Any election made under this Section 6.04 may only be made in the method prescribed by the Company.
6.05    Special Election for Company Supplemental Cash Balance Benefits  Notwithstanding any other provision in the Plan to the contrary, during 2008 a Participant may modify the form of distribution and the distribution date elected (or deemed elected) under Section 6.01, provided that the election is made not later than December 31, 2008.  No election under this Section shall: (1) change the payment date of any distribution otherwise scheduled to be paid in 2008 or cause a payment to be paid in 2008, or (2) be permitted after December 31, 2008.
6.06    Benefits upon Termination of Employment  In the event of Termination of Employment, whether voluntary or involuntary, prior to a Participant’s Early Retirement Age or death, the Participant shall receive a distribution of the portion of the Participant’s Benefit Account attributable to Stated Deferrals and the Company Contributions related thereto as a lump sum payment within 90 days following Termination of Employment. The Company, in its sole discretion, determines when during such 90-day period benefit payments will be made or commence.
6.07    Benefits Upon Death from Benefit Account  In the event of a Participant’s death prior to the distribution of his entire Benefit Account, the remaining balance in the Participant’s Benefit Account shall be distributed to the Beneficiary or Beneficiaries of the Participant.  The Beneficiary will receive the payment in the form of a lump sum benefit, with the payment being made no later than the end of the calendar year that commences after the death of the Participant.  

	
			
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In order to change the form or the time of the payment, the Beneficiary must make an election after the Participant’s death and before payment commences under the Plan.  If the Beneficiary fails to make a timely election, the Beneficiary will receive the benefit in the form of a lump sum payment.  The Beneficiary cannot elect to receive payment of the benefit past the date that is the April 1 following the end of the calendar year in which the Participant would have attained age 70.
6.08    Benefits Upon Death for Company Supplemental Cash Balance Benefit  In the event a Participant dies prior to the distribution of his Company Supplemental Cash Balance Benefit, if any, and the Participant did not elect death as the time of payment of his Cash Supplemental Benefit, an automatic lump sum that is the actuarial equivalent of the Participant’s vested balance attributable to the Participant’s Company Supplemental Cash Balance Benefit shall be distributed to the Beneficiary or Beneficiaries of the Participant.  Payment of the lump sum benefit shall be no later than the end of the year that commences after the death of the Participant.  In order to change the form or the time of the payment, the Beneficiary must make an election after the Participant’s death, but before payments commence hereunder, to receive the distribution in a form that is available under the Cash Balance Plan.  If the Beneficiary fails to make a timely election, the Beneficiary will receive the benefit in the form of a lump sum payment.  The Beneficiary cannot elect to receive payment past the date that is the April 1 following the end of the calendar year in which the Participant would have attained age 70 1⁄2, or benefits in a form not allowed under the Cash Balance Plan..  If the Participant dies after his Company Supplemental Cash Balance Benefit payments have commenced, the only death benefit payable in respect of said Participant shall be the amount, if any, payable under that

	
			
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form of benefit which the Participant has elected for the payment of his Company Supplemental Cash Balance Benefit.
6.09    Company Supplemental Cash Balance Benefit and Reemployment.  If a Participant experiences a Termination of Employment and once again becomes employed by the Company and becomes a Participant under the Plan, the Company Supplemental Cash Balance Benefit he or she earned prior to such Termination of Employment (a Participant’s “Previous Benefit”), if any, shall continue to be paid according to the schedule elected by the Participant.  Any Company Supplemental Cash Balance Benefit accrued after the date that an employee again becomes a Participant shall be reduced by an amount equal to the actuarial equivalence of the Participant’s Previous Benefit.  For the purposes of this Section, actuarial equivalence shall be determined by the Plan’s actuary utilizing for that purpose the same actuarial factors and assumptions then used by the Cash Balance Plan or Financial Institutions Retirement Fund, as applicable.  The benefit payment under this Section 6.10 will be paid in the form of a lump sum benefit at Termination of Employment.
6.10    Unforeseeable Emergency  The Administrator, in its sole discretion, upon finding that the Participant has suffered an Unforeseeable Emergency, may distribute to such Participant all or a portion of the balance in the Participant’s Benefit Account.  Distributions because of an Unforeseeable Emergency will be limited to the amount reasonably necessary to satisfy the emergency need (which may include amounts necessary to pay any Federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution).
6.11    Prohibition on Acceleration  Notwithstanding any other provision of the Plan to the contrary, no distribution shall be made from the Plan that would constitute an impermissible 

	
			
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acceleration of payment as defined in Section 409A(a)(3) of the Code and the regulations promulgated thereunder.
6.12    Permissible Payment Delays  The Administrator may delay any payment to a Participant if permissible under the Treasury Regulations promulgated under Code Section 409A, including upon the Administrator’s reasonable anticipation of one or more of the following: (i) making such payment would jeopardize the Company’s ability to continue as a going concern and the payment is made to the Participant during the first taxable year in which making the payment would not have such effect on the Company; or (ii) making such payment would violate Federal securities laws or other applicable law.
6.13    Company Obligations and Source of Payments  All benefits payable under this Plan shall be paid as they become due and payable by the Company out of its general assets.  Nothing contained in this Plan shall be deemed to create a trust of any kind for the benefit of the Participants or create any fiduciary relationship between the Company or the Retirement Committee and the Participants or their Beneficiaries.  To the extent that any person acquires a right to receive benefits under this Plan, such rights shall be no greater than the right of any unsecured general creditor of the Company.  Notwithstanding the foregoing, the Company may, at its discretion, establish a bookkeeping reserve or grantor trust (as such term is used in Sections 671 through 677 of the Code) to reflect or to aid in meeting its obligations under the Plan with respect to any Participant or prospective Participant or Beneficiary.  No Participant or Beneficiary shall have any right, title, or interest whatever in or to any investments which the Company may make or any specific assets which the Company may reserve to aid it in meeting its obligations under the Plan.

	
			
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6.14    Limited Amount Cashout  Notwithstanding any provision of Article 6 to the contrary, the Bank may pay a Participant’s Company Supplemental Cash Balance Benefits to the Participant, or to his or her Beneficiary or Beneficiaries, if applicable, in a single lump sum payment on or before the required payment date otherwise provided in this Article 6  if (1) the actuarial lump sum value of the payment is not greater than the applicable dollar amount under section 402(g)(1)(B) of the IRC, and (2) such payment results in the termination and liquidation of the entirety of the Participant’s, or his or her Beneficiary’s or Beneficiaries’, interest in all “non-account balance plans” as defined under Treasury Regulation section 1.409A-1(c)(2)(C), which are considered to be a single non-qualified deferred compensation plan under Treasury Regulation section 1.409A-1(c).
Notwithstanding any provision of Article 6 to the contrary, the Bank may also pay the balance of Stated Deferrals in a Participant’s Benefit Account to the Participant, or to his or her Beneficiary or Beneficiaries, if applicable, in a single lump sum payment on or before the required payment date otherwise provided in Article 6 if (1) the lump sum value of the payment is not greater than the applicable dollar amount under section 402(g)(1)(B) of the IRC, and (2) such payment results in the termination and liquidation of the entirety of the Participant’s, or his or her Beneficiary’s or Beneficiaries’, interest in all “ elective account balance plans” as defined under Treasury Regulation section 1.409A-1(c)(2)(A), which are considered to be a single non-qualified deferred compensation plan under Treasury Regulation section 1.409A-1(c).
Notwithstanding any provision of Article 6 to the contrary, the Bank may also pay the balance of Company Contributions in a Participant’s Benefit Account to the Participant, or to his or her Beneficiary or Beneficiaries, if applicable, in a single lump sum payment on or before the required payment date provided in this Article 6 if (1) the lump sum value of the payment is not 

	
			
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greater than the applicable dollar amount under section 402(g)(1)(B) of the IRC, and (2) such payment results in the termination and liquidation of the entirety of the Participant’s, or his or her Beneficiary’s or Beneficiaries’, interest in all “ non-elective account balance plans” as defined under Treasury Regulation section 1.409A-1(c)(2)(B), which are considered to be a single non-qualified deferred compensation plan under Treasury Regulation section 1.409A-1(c).
ARTICLE 7.  ADMINISTRATION OF THE PLAN
7.01    Retirement Committee  The Plan shall be administered by the Retirement Committee, as appointed by the Board.  Subject to those powers which the Board has reserved as described in Article 7 below, the Retirement Committee has general authority over, and responsibility for, the administration of the Plan.  The Retirement Committee shall have full power, authority and discretion to interpret and construe the Plan, to make all determinations considered necessary or advisable for the administration of the Plan and the calculation of the amount of benefits payable thereunder, and to review claims for benefits under the Plan.  The Retirement Committee’s interpretations and constructions of the Plan and its decisions or actions thereunder shall be binding and conclusive on all persons for all purposes.
7.02    Advisors to the Retirement Committee; Reports to the Board of Directors  If the Retirement Committee deems it advisable, it shall arrange for the engagement of an actuary, legal counsel and certified public accountants (who may be counsel or accountants for the Company), and other consultants, and make use of agents and clerical or other personnel, for purposes of the Plan.  The Retirement Committee may rely upon the written opinions of the actuary, counsel and accountants, and upon any information supplied by the Cash Balance Plan, the Benefit Equalization Plan or the Savings Plan; and delegate to any agent or to any 

	
			
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subcommittee or Retirement Committee member its authority to perform any act hereunder, including without limitation those matters involving the exercise of discretion; provided, however, that such delegation shall be subject to revocation at any time at the discretion of the Retirement Committee.  The Retirement Committee shall report to the Board, or to a committee designated by the Board, at such intervals as shall be specified by the Board or such designated committee, with regard to the matters for which it is responsible under the Plan.
7.03    Membership of the Retirement Committee  The Retirement Committee shall consist of at least three individuals, each of whom shall be appointed by the Board.  The Board may remove any member of the Retirement Committee at any time and for any reason with or without advance written notice.  Vacancies in the Retirement Committee arising by resignation, death, removal or otherwise shall be filled by the Board.  Any Retirement Committee member may resign by delivering his written resignation to the Retirement Committee no later than 15 days before the effective date of the resignation.  No Retirement Committee member shall be entitled to act on or decide any matters relating solely to such Retirement Committee member as a Participant or any of his rights or benefits under the Plan.  The Retirement Committee members shall not receive any special compensation for serving in such capacity but shall be reimbursed for any reasonable expenses actually incurred in connection therewith.  No bond or other security is required of the Retirement Committee or any member thereof in any jurisdiction.
7.04    Retirement Committee Procedures  The Retirement Committee shall elect or designate one of its own members as Chairman, establish its own procedures and the time and place for its meetings and provide for the keeping of minutes of all meetings.  A majority of the members of the Retirement Committee shall constitute a quorum for the transaction of business

	
			
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by the Retirement Committee.  Any action of the Retirement Committee may be taken upon the affirmative vote of a majority of the members at a meeting or, at the direction of its Chairman, without a meeting by mail or telephone, provided that all of the Retirement Committee members are informed in writing of the matter to be voted upon.  The Retirement Committee may establish procedures pursuant to which a Retirement Committee member may elect not to participate in a Retirement Committee proceeding in which such member has an interest.
7.05    Expenses of the Retirement Committee  All expenses incurred by the Retirement Committee in its administration of the Plan shall be paid by the Company.
7.06    Claims for Benefits  All claims for benefits under the Plan shall be submitted in writing to the Retirement Committee.  Written notice of the decision on each claim shall be furnished with reasonable promptness to the Participant or his Beneficiary (the “claimant”).  The claimant may request a review by the Retirement Committee of any decision denying the claim in whole or in part.  Such request shall be made in writing and filed with the Retirement Committee within 30 days of such denial.  A request for review shall contain all additional information which the claimant wishes the Retirement Committee to consider.  The Retirement Committee may hold any hearing or conduct any independent investigation which it deems desirable to render its decision and the decision on review shall be made as soon as feasible after the Retirement Committee’s receipt of the request for review.  Written notice of the decision on review shall be furnished to the claimant.  For all purposes under the Plan, such decisions on claims (where no review is requested) and decisions on review (where review is requested) shall be final, binding, and conclusive on all interested persons as to all matters relating to the Plan.

	
			
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ARTICLE 8.  MISCELLANEOUS
8.01    Employment Not Guaranteed by Plan  Neither the Plan nor any action taken under the Plan shall be construed as giving a Participant the right to be retained as a Director or as an Employee of the Company for any period or abridging the Company’s right to dismiss at pleasure any Participant from its employ.
8.02    Amendment and Termination  The Board, at any time, may amend, suspend or terminate the Plan in whole or in part without the consent of the Retirement Committee, any Participant, Beneficiary, or other person, provided that no amendment, suspension or termination shall retroactively impair or otherwise adversely affect the rights of any Participant, Beneficiary, or other person to benefits under the Plan which have accrued prior to the date of such action, as determined by the Committee in its sole discretion.
The Retirement Committee may adopt any amendment or take any other action which may be necessary or appropriate to facilitate the administration, management and interpretation of the Plan or to conform the Plan thereto, provided that any such amendment or action does not have a material effect on the then currently estimated cost to the Company of maintaining the Plan.
Upon termination of the Plan, no further benefits shall accrue under the Plan to any Participant.  In the event of a termination of the Plan, the Company may determine that the vested interests of the Participants will be distributed.  If such a determination is made, the Participants’ vested interests will be distributed within the period beginning twelve months after the date the Plan was terminated and ending twenty-four months after the date the Plan was terminated, or pursuant to Section 6 of the Plan, if earlier.  Any liquidation and termination of the Plan will not occur proximate to a downturn in the financial health of the Company, as required by Code Section 409A.  If the Plan is terminated and distributions are made within the time period described above,

	
			
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the Company shall:  (1) terminate all arrangements for Participants that are required to be aggregated with the Plan under Code Section 409A and (2) not adopt a new plan for Participants that would be aggregated with the Plan under Code Section 409A at any time within three years following the date of termination of the Plan.
8.03    Change in Control  The Company may terminate the Plan within 30 days prior to or twelve months following a Change in Control and distribute the vested interests of the Participants within the twelve-month period following a termination of the Plan.  If the Plan is terminated and all of the Participant’ vested interests in the Plan are distributed in connection with a Change in Control, all plans that are aggregated as a single plan with this Plan under Code Section 409A must be terminated and distributions under such plans must be made within the same 12 month period.
8.04    Dissolution or Bankruptcy  The Plan shall automatically terminate upon a corporate dissolution or bankruptcy, provided that Participants’ vested interests are distributed and included in the gross income of the Participants by the latest of (or, if earlier, the taxable year in which such vested interest is actually or constructively received): (i) the Plan Year in which the Plan terminates, (ii) the first Plan Year in which payment of the vested interests is administratively practicable, or (iii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture.  A corporate dissolution or bankruptcy will have occurred only if transaction qualifies as both a liquidation or reorganization under 12 United States Code Section 1446(26) and as a dissolution or bankruptcy under Section 409A of the Code and the regulation promulgated thereunder.
8.05    Assignment of Benefits  No Participant or Beneficiary shall have the right to assign, transfer, hypothecate, encumber or anticipate his interest in any benefits under this Plan,

	
			
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nor shall the benefits under this Plan be subject to any legal process to levy upon or attach the benefits for payment of any claim against the Participant or his Beneficiary.  In the event of any attempted assignment or transfer, the Company shall have no further liability hereunder.  The foregoing notwithstanding, in accordance with procedures that are established by the Retirement Committee (including procedures requiring prompt notification of the affected Participant and each alternate payee of the receipt by the Plan or the Company of a domestic relations order and its procedures for determining the qualified status of such order) and subject to Code Section 409A, a judicial order for purposes of enforcing family support obligations or pertaining to domestic relations (which orders do not alter the amount, timing or form of benefit other than to have it commence at the earliest permissible date) shall be honored by the Plan and the Company if the Retirement Committee or its designee determines that such order would constitute a qualified domestic relations order (within the meaning of Code Section 414(p)(1)(B)) if the Plan were a qualified retirement plan under Code Section 401(a).
8.06    Facility of Payment  If the Company finds that any person to whom any amount is or was payable under the Plan is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any payment, or any part thereof, due to such person or his estate (unless a prior claim has been made by a duly appointed legal representative), may, if the Company is so inclined, be paid to such person’s spouse, child, or other relative, an institution maintaining or having custody of such person, or any other person deemed by the Company to be a proper recipient on behalf of such person otherwise entitled to payment.  Any such payment shall be in complete discharge of the liability of the Plan and the Company.
8.07    Disposition of Unclaimed Payments  Each Participant must file with the Company from time to time in writing his post office address and each change of post office 

	
			
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address.  The communication, statement or notice addressed to a Participant at the last post office address filed with the Company, or if no address is filed with the Company, then at the last post office address as shown on the Company records, will be binding upon Participant and his Beneficiaries for all purposes of the Plan.  The Company shall not be required to search for or locate a Participant or his Beneficiary.
8.08    Taxes  The Company shall deduct from all payments or deferrals made hereunder all applicable federal or state taxes required by law to be withheld from such payments.
8.09    Independence of Benefits  The benefits payable under this Plan shall be independent of, and in addition to, any other benefits provided by the Company and shall not be deemed salary or other remuneration by the Company for the purpose of computing benefits to which any Participant may be entitled under any other plan or arrangement of the Company.
8.10    Governing Law  This Plan is intended to constitute an unfunded Plan for a select group of employees and rights thereunder shall be construed according to the laws of the State of California, without giving effect to the choice of law principles thereof, and the laws of the United States, as applicable.  The Plan is intended to comply with Code Section 409A.  Notwithstanding any provision to the contrary, the Plan shall be interpreted as necessary to comply with Code Section 409A and any regulations promulgated thereunder.  Any benefit, payment or other right provided by the Plan shall be provided or made in a manner that complies with the applicable requirements of Code Section 409A and any regulations promulgated thereunder.  Any provision of the Plan that cannot be interpreted or applied in a manner consistent with Code Section 409A is deemed amended to comply with Code Section 409A or, if such amendment is not possible, is void.  The Plan specifically incorporates the plan 

	
			
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aggregation rules under Treasury Regulations § 1.409A-1(c)(2) and any payment periods permitted after a payment event or time under Treasury Regulations § 1.409A-3.  Any provision that is noncompliant with Section 409A of the Code is void or deemed amended to comply with Section 409A of the Code.  The Company 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.
8.11    Form of Communication  Any election, application, claim, notice, designation, request, instruction or other communication required or permitted to be made by a Participant, Beneficiary or other person to the Company or the Retirement Committee shall be made in writing and in such form as the Company shall prescribe.  Such communication shall be mailed by first class mail, postage pre-paid, or delivered to such location as the Company shall specify and shall be deemed to have been given and delivered only upon receipt thereof at such location.
8.12    Severability  The invalidity of any portion of this Plan shall not invalidate the remainder thereof, and said remainder shall continue in full force and effect.
8.13    Binding Agreement  The Plan shall be binding upon and inure to the benefit of the Company and its successors and assigns and the Participants and their Beneficiaries.  The Plan shall also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of the Company, but nothing in the Plan shall preclude the Company 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 Company thereunder.
Except as provided in Sections 8.02, 8.03, and 8.04, the Company agrees that it will make appropriate provision for the preservation of the Participants’ rights under the Plan in any 

	
			
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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 the Plan obligations of the Company, the term “Company” shall refer to such other organization and the Plan shall continue in full force and effect.
8.14    Gender; Singular and Plural  As used in the Plan, the masculine gender shall be deemed to refer to the feminine, and the singular person shall be deemed to refer to the plural, wherever appropriate.
8.15    Captions  The captions preceding the sections of the Plan have been inserted solely as a matter of convenience and shall not in any manner define or limit the scope or intent of any provisions of the Plan.
8.16    Responsibility and Indemnification of Retirement Committee Members  No Retirement Committee member shall be personally liable by reason of any instrument executed by him or on his behalf, or action taken by him, in his capacity as a Retirement Committee member acting in good faith and exercising reasonable care, nor for any mistake of judgment made in good faith.  Retirement Committee members may be entitled to indemnification for certain costs, expenses and liabilities pursuant to the Federal Home Loan Bank of San Francisco Policy Regarding Indemnification of Directors, Officers and Employees Acting in Connection with Certain Employee Benefit Plans, as such Policy may be amended from time to time.
[Signature Page Follows]

	
			
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This amended and restated Federal Home Loan Bank of San Francisco Deferred Compensation Plan effective as of January 1, 2020 is executed this 20th day of December, 2019.

	
					
	ATTEST:
	 
	FEDERAL HOME LOAN BANK OF SAN FRANCISCO

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/s/ J. Gregory Seibly

	 
	Secretary
	 
	 
	Officer

	 
	 
	 
	By:
	 

	 
	 
	 
	 
	Officer

	
			
	Approved July 26, 2019

	33

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