FHLBANK SAN FRANCISCO 2007 PRESIDENTS INCENTIVE PLAN

EXHIBIT 10.11

FHLBANK SAN FRANCISCO

2007 PRESIDENT’S INCENTIVE PLAN

PLAN PURPOSE

To optimize the Bank’s performance in accomplishing Board approved goals and objectives.

PLAN OBJECTIVES

To motivate key executive (President) to exceed Bank goals and objectives which directly support the business plan and long-term strategic plan. To attract and retain an outstanding executive by providing a competitive total compensation program, including incentive award opportunity.

INCENTIVE GOALS, WEIGHTS, AND MEASURES

Incentive Goals

The incentive goals are based primarily on the objectives set forth in the Bank’s 2007 business plan.

The Board of Directors determines whether or not to apply a discretionary component to the incentive compensation payments representing achievements that are not necessarily measured or identified under the Plan.

Incentive Goal Weights

The incentive goal weights are set forth in the 2007 goal weights and measures table found on the following page.

Actual achievement of Bank goals one (1) and two (2) are subject to adjustment for changes resulting from movements in interest rates, changes in financial strategies or policies, any significant change in Bank membership, as well as other factors determined by the Board.

Incentive Goal Achievement Measures

The plan rewards levels of goal achievement as follows:

2007

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

AWARD DETERMINATION

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

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

AWARD OPPORTUNITY

The Board of Directors has the discretion to approve incentive awards for achievement below 75% total weighted achievement. And, the Board of Directors has full discretion to modify any and all incentive payments.

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