2008 DIRECTOR COMPENSATION POLICY

EXHIBIT 10.7.3

FEDERAL HOME LOAN BANK OF BOSTON

2008 DIRECTOR COMPENSATION POLICY

As Revised December 12, 2008

A fee of $2,075 per meeting shall be paid to all Directors that attend all or part of a meeting of the Board of Directors.  A fee of $2,850 per meeting shall be paid to the vice chair of the Board.  A fee of $3,650 per meeting shall be paid to the chair of the Board.  This fee shall also be provided to any person elected by the Board to serve as chairman pro tempore or to the vice chair if the vice chair presides for an entire meeting of the Board.  There are nine regularly scheduled meetings in 2008.

A fee of $750 per meeting shall be paid to all committee members, including ex officio members, who attend all or any part of any meeting of a committee of the Board.  A fee of $750 shall be paid to any Director who attends all or part of the annual shareholders meeting.

A fee of $500 per meeting shall be paid to any Director for participation in telephonic conference calls or when participating by telephone f