Federal Home Loan Bank of San Francisco Conditions of Employment for Named Executives

EXHIBIT 10.1

Federal Home Loan Bank of San Francisco

Conditions of Employment for Named Executives

Employment Status

Pursuant to the Federal Home Loan Bank Act, the employees of the Federal Home Loan Bank of San Francisco (the “Bank”), including the Bank’s chief executive officer and other four most highly compensated executive officers as of December 31, 2005 (Dean Schultz, Ross J. Kari, Lawrence H. Parks, Steven T. Honda, and Stephen P. Traynor) (the “named executive officers”), are “at will” employees. Each may resign his or her employment at any time and the Bank may terminate his or her employment at any time for any reason or no reason, with or without cause and with or without notice.

Each of the named executive officers receives a base salary and is eligible to participate in the Bank’s executive incentive compensation plans and comprehensive benefit programs, including both qualif