Document:

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                                                               EXHIBIT 10.16

                              EMPLOYMENT AGREEMENT

                  THIS AGREEMENT is made as of the 1st day of January, 2000,
by and between Harley-Davidson Financial Services, Inc., a Delaware
corporation (the "Company"), and Donna F. Zarcone of Burr Ridge, Illinois
(the "Executive").

                  WHEREAS,  the Company and the Executive are parties to an
existing  employment  agreement,  dated as of November 14, 1995,  the term of
which expires December 31, 1999;

                  WHEREAS, the Executive is willing to continue to perform
services for the Company for a longer term, and the Company wishes to have
the Executive render such services for such term; and

                  WHEREAS, the parties desire to set forth the terms and
conditions under which the Executive shall be employed and upon which the
Company shall compensate the Executive.

                  NOW, THEREFORE, in consideration of the premises and
promises contained herein, the parties agree as follows:

                  1. EMPLOYMENT. The Company hereby employs the Executive,
and the Executive hereby accepts employment with the Company, as the
President and Chief Operating Officer of the Company. In such capacity, the
Executive will participate in the establishment of the Company's strategies
and policies, as well as the management of the Company's operations and
perform such duties and services of an executive and administrative character
as shall be assigned to the Executive from time to time by the Chairman and
Chief Executive Officer of the Company (the "Services").

                  2. PERFORMANCE. The Executive agrees to devote the
Executive's best efforts, energies and skills on a full time basis during
normal working hours to performance of the Executive's duties hereunder
(except for vacations and reasonable periods of illness or incapacity).
During the term of this Agreement, the Executive shall not engage in any
other business or business activity, whether or not such business activity is
pursued for gain, profit or other pecuniary advantage; provided, however,
that the Executive shall be not prevented from (i) investing the Executive's
assets in such form or manner as will not require any substantial amount of
time or services on the part of the Executive in the operation of the affairs
of the enterprises in which such investments are made or (ii) engaging in
limited outside business activities, such as serving on the board of
directors of an entity or organization which will not conflict with the
Executive's duties hereunder. The principal place for performance of the
Services shall be Chicago, Illinois, and the Company will permit the
Executive to perform substantially all of the Services therefrom. The
Executive may be obliged, from time to time, and for reasonable periods of
time, to travel in the performance of the Services.

                  3. BASE SALARY. For all duties to be performed by the
Executive hereunder, the Executive shall receive an annual base salary (the
"Base Salary") of Three Hundred Six Thousand Seventy-Five Dollars ($306,075),
payable by the Company in equal semi-monthly

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installments (prorated for any partial year). The Base Salary shall be
subject to adjustment from time to time by the Chairman and Chief Executive
Officer of the Company.

                  4. BONUS. In addition to Base Salary, the Executive shall
be eligible to participate in incentive programs offered to senior management
of the Company, including consideration for an annual bonus (the "Bonus").

                  5. VACATION. The Executive shall be entitled to annual paid
vacation in accordance with the Company's policy applicable to executive
employees of the Company, which may be taken at such times as are consistent
with good business practices.

                  6. FRINGE BENEFITS. The Executive shall be entitled to receive
such fringe benefits as are available to executive employees of the Company
generally, including participation in the Company's retirement and deferred
compensation programs.

                  7. INSURANCE. The Executive shall be enrolled in the
Company's group insurance program, including life, accidental death and
officer group medical insurance program. The cost of all insurance coverage
shall be paid by the Company and the Executive in accordance with the
Company's standard practice.

                  8. EXPENSES. The Executive is authorized to incur reasonable
expenses in rendering Services hereunder and in the performance of the
Executive's duties hereunder. The Company will reimburse the Executive in a
timely manner at least monthly for all such expenses upon presentation of an
itemized written accounting therefor (together with such vouchers and other
verifications as the Company may require) within thirty (30) days after they
have been incurred.

                  9. CONFIDENTIAL INFORMATION. The Executive acknowledges that
(i) the Executive holds a senior management position with the Company, (ii) in
connection with the Services being rendered under this Agreement, the Executive
will acquire and make use of confidential information and trade secrets of the
Company and its affiliates ("Confidential Information"), including, but not
limited to, financial statements, client lists, project reports, software design
and documentation, internal memoranda, marketing programs, reports and other
materials or records of a proprietary nature which are not generally known to
the public, (iii) the Confidential Information constitutes a unique and valuable
asset of the Company, (iv) maintenance of the proprietary character of such
information, to the full extent feasible, is important to the Company, (v) the
Confidential Information is sufficiently secret as to derive economic value from
not being generally known to others who could obtain economic value from its
disclosure or use, and (vi) the Confidential Information is currently the
subject of efforts to maintain its secrecy or confidentiality. Therefore, in
order to protect the Confidential Information, the Executive agrees as follows:

                    (a) to hold the Confidential Information in strictest
           confidence and not to use or disclose such Confidential
           Information without the written authorization of the Company,
           except in connection with the Services being rendered under
           this Agreement, for so long as any such Confidential
           Information may remain confidential, secret or otherwise
           wholly or partially protectable;

                                    -2-
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                    (b) to take all appropriate steps to safeguard any
           Confidential Information and to protect it against disclosure,
           misuse, espionage, loss and theft; and

                    (c) to return to the Company upon termination of
           employment all materials relating to the Company or its
           business, including all Confidential Information, coming into
           the Executive's possession during the term of the Executive's
           employment with the Company or while employed by a predecessor
           to the Company's business.

                  10. COVENANTS NOT TO COMPETE OR SOLICIT.

                 10.1 So long as the Executive is employed by the Company and
for a period of one (1) year thereafter, the Executive shall not, directly or
indirectly, by or for the Executive or as the agent of another, or through
others as the Executive's agent:

                    (a) promote or sell leisure product financial
           services anywhere in those states or territories (the
           "Territory") in which the Company has rendered services or
           provided financing within the eighteen (18) months immediately
           preceding the termination of employment (the "Relevant
           Period") in competition with those of the Company; or

                    (b) own, manage, operate, be compensated by,
           participate in or have any right to or interest in any other
           business that promotes or sells leisure product financial
           services in the Territory in competition with those of the
           Company.

                  10.2 So long as the Executive is employed by the Company and
for a period of one (1) year thereafter, the Executive shall not (except in
connection with the rendering of services hereunder), directly or indirectly, by
or for the Executive or as the agent of another, or through others as the
Executive's agent:

                     (a) solicit or accept any business from customers of
            the Company, or request, induce or advise customers of the
            Company to withdraw, curtail or cancel their business with the
            Company;

                     (b) solicit for employment or employ or become
            employed by any past, present or future employee of the
            Company, or request, induce or advise any employee to leave
            the employ of the Company; or

                     (c) use or disclose any nonpublic information
            concerning the Company or its businesses and affairs,
            including Confidential Information.

                  10.3 The Executive agrees that if the Executive shall violate
any of the provisions of this Section 10, the Company shall be entitled to an
accounting and repayment of all profits, compensation, commission, renumeration
or other benefits that the Executive, directly or indirectly, may realize
arising from or related to any such violation. These remedies shall be in
addition to, and not in limitation of, any injunctive relief or other rights to
which the Company may be entitled.

                                     -3-
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                  10.4 The parties agree and acknowledge that the duration,
scope and geographic areas applicable to the covenant not to compete
described in this Section are fair, reasonable and necessary, that adequate
compensation has been received by the Executive for such obligations, and
that these obligations do not prevent the Executive from earning a
livelihood. If, however, for any reason any court determines that the
restrictions in this Section 10 are not reasonable, that consideration is
inadequate or that the Executive has been prevented from earning a
livelihood, such restrictions shall be interpreted, modified or rewritten to
include as much of the duration, scope and geographic area identified in this
Section as will render such restrictions valid and enforceable.

                  10.5 Nothing herein shall prohibit the Executive from owning
in the aggregate not more than 1% of the outstanding stock of any corporation
which is publicly traded, so long as the Executive has no active participation
in the business of such corporation.

                  11. REMEDIES. The Executive acknowledges that the Executive
has carefully read and considered the terms of this Agreement and knows them to
be essential to induce the Company to enter into this Agreement and that any
breach of the provisions contained herein will result in serious and irreparable
injury to the Company. The Executive further acknowledges that the Company's
business interests protected hereby are substantial and legitimate. Therefore,
in the event of a breach of any such provisions, the Company shall be entitled
to equitable relief against the Executive by way of injunction (in addition to,
but not in substitution for, any and all other relief to which the Company may
be entitled at law or in equity) to restrain the Executive from such breach and
to compel compliance by the Executive with the Executive's obligations
hereunder. The Company shall also be entitled to seek a protective order to
ensure the continued confidentiality of its trade secrets and proprietary
information. The Executive hereby waives any from such breach and to compel
compliance by the Executive with the Executive's obligations hereunder. The
Company shall also be entitled to seek a protective order to ensure the
continued confidentiality of its trade secrets and proprietary information. The
Executive hereby waives any requirement of proof that such breach will cause
serious or irreparable injury to the Company, or that there is an adequate
remedy at law.

                  12.  TERMINATION.

                  12.1 TERM. Except as provided below, this Agreement shall
remain in full force and effect from the date hereof for an initial term ending
through December 31, 2000 (the "Initial Term"). Thereafter this Agreement shall
continue for successive one year renewal terms (each a "Renewal Term"), unless
either Executive or Company gives the other written notice, not less than ninety
(90) days prior to the end of the Initial Term or any Renewal Term, stating that
this Agreement shall expire at the end of the Initial Term or such Renewal Term,
as the case may be. As used in this Agreement "Term" means the Initial Term
together with any Renewal Term(s).

                  12.2 DEATH. In the event of the death of the Executive during
the term hereof, this Agreement shall terminate at the end of the month in which
the Executive dies. The Company shall pay within thirty (30) days of the date of
death to the Executive's legal representatives or, if the Executive shall have
filed with the Company a designation of a person to receive such payment, such
person, the sum of (i) any unpaid Base Salary through the date of termination,
(ii) any Bonus for the year in which such termination occurs prorated as of the
date of termination, (iii) accrued and unpaid vacation pay, (iv) proceeds,
benefits or other sums due

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under any of the Company's benefit, insurance, retirement or other plans, and
(v) any unreimbursed expenses incurred by the Executive on the Company's
behalf. Items (i) through (v) are hereinafter referred to as the "Termination
Payments".

                  12.3 DISABILITY. If, during the Term, the Executive comes
under such illness, physical or mental disability or other incapacity that the
Board of Directors of the Company determines that the Executive is unable to
perform the Executive's duties under this Agreement for a period in excess of
ninety (90) substantially consecutive days, the Company may terminate this
Agreement by giving notice to the Executive of its intention to terminate due to
disability and this Agreement shall terminate at the end of the month following
the month in which such notice was given. In the event of such termination, the
Company shall pay the Termination Payments to the Executive within thirty (30)
days of such termination and the Executive's Base Salary shall be continued
(offset by any amounts payable to the Executive under the Company's benefit
plans or short or long term disability insurance or social security payable)
until the earliest of (i) one (1) year after termination, (ii) the end of the
Term, or (iii) the death of the Executive.

                  12.4 TERMINATION BY THE COMPANY WITHOUT CAUSE. The Company may
terminate this Agreement without cause upon thirty (30) days' prior notice in
accordance with the Company's policies and procedures generally applicable to
the managerial employees of the Company. In the event of such termination, the
Company shall (a) pay the Termination Payments to the Executive within thirty
(30) days of such termination and (b) pay severance pay in a lump sum within
thirty (30) days of such termination in amount equal to the aggregate amount of
the Executive's monthly Base Salary that would have been paid over the one-year
period immediately following termination at the rate in effect on the date of
termination. Additionally, in the event of such termination, during the twelve
(12) consecutive months immediately following the date of termination or the
period beginning on the date of termination and ending on the date the Executive
becomes employed on a substantially full-time basis, whichever is shorter, the
Company shall (a) make available to the Executive coverage under the Company's
medical, dental and life insurance plans on the same terms as such plans are
made available to the Company's managerial employees generally, and (b) maintain
any split-dollar life insurance on the Executive's life owned by the Company and
pay the premiums (for such period) due on any split-dollar life insurance on the
Executive's life owned by the Executive.

                  12.5 TERMINATION FOR CAUSE. Notwithstanding any other
provision hereof, the Company may terminate the Executive's employment under
this Agreement without prior notice at any time for "Cause". For purposes of
this Agreement, "Cause" shall mean dishonest, fraudulent or illegal conduct
(with the exception of minor misdemeanors such as traffic violations),
misappropriation of Company funds, substance abuse or the illegal use of
controlled substances, gross incompetence, breach of any statutory or common law
duty of loyalty to the Company, or any conduct that brings the Company into
public ridicule or disrepute. In the event of such termination, the Company
shall pay the Termination Payments to the Executive within thirty (30) days of
such termination; provided, however, that the Company shall have no obligation
to pay any Bonus to the Executive for the year in which such termination occurs.

                  12.6 EFFECT OF TERMINATION. Upon termination of this
Agreement, all obligations of the Company and rights of the Executive under
this Agreement shall cease, except as otherwise provided herein.
Notwithstanding anything to the contrary contained herein, the

                                     -5-
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provisions of Sections 9 through 12 shall survive any termination of this
Agreement or employment and shall remain in full force and effect.

                  13. ARBITRATION. Any controversy or claim arising out of or
relating to this Agreement, or any breach thereof, shall be settled by
arbitration in accordance with the Rules of the American Arbitration
Association, and judgment upon the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof. The decision of such
arbitrator(s) shall be conclusive and binding upon the parties hereto. The
Company shall pay on a current basis all legal expenses (including reasonable
attorneys' fees) incurred by the Executive in connection with such
arbitration and the entering and enforcement of such award. Notwithstanding
the foregoing, the Company may, in its discretion, apply to a court of
competent jurisdiction for the purposes of obtaining any relief contemplated
by Section 11.

                  14. NOTICE. Any notice required to be given, served or
delivered to any of the parties hereto shall be sufficient if it is in writing
and sent by certified or registered mail, with proper postage prepaid, addressed
as follows:

                           TO EXECUTIVE:

                           Donna F. Zarcone
                           6002 South Grant
                           Burr Ridge, IL 60521

                           TO COMPANY:

                           Harley-Davidson Financial Services, Inc.
                           c/o Harley-Davidson Inc.
                           3700 West Juneau Avenue
                           Milwaukee, Wisconsin 53208
                           Attn: Chairman and Chief Executive Officer

                           with a copy to:

                           Harley-Davidson, Inc.
                           3700 West Juneau Avenue
                           Milwaukee, WI 53208
                           Attn: Vice President and General Counsel

or to such other  address as a party from time to time may  designate  by
notice to the other.  Notice  shall be deemed  effective  on the date
deposited  for delivery in the U.S. mail.

                  15. ASSIGNMENT. This Agreement shall inure to the benefit of
and be binding upon the Executive, the Executive's administrative executors and
heirs and the Company, its successors and assigns. This Agreement is for
personal services and may not be assigned or pledged by the Executive in any
manner, by operation of law or otherwise, without the written consent of the
Company. This Agreement may not be assigned by the Company; provided however,
that if substantially all of the business or assets of the Company are sold and
the Executive agrees to become an employee of the acquiror, then the Company may
assign this Agreement to such acquiror.

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                  16. APPLICABLE LAW. This Agreement shall be governed by and
construed in accordance with the internal substantive laws of the State of
Illinois, and the parties hereby consent to the jurisdiction of Illinois courts
over all matters relating to this Agreement.

                  17. ENTIRE AGREEMENT. This Agreement contains the entire
agreement of the parties in regard to the subject matter hereof, supersedes
all prior discussions, agreements and understandings of every kind between
the parties in regard to the subject matter hereof and may be changed only by
a written document signed by the party against whom enforcement of any
waiver, change, modification, extension or discharge is sought. This
Agreement does not supersede the Transition Agreement dated December 1, 1999
between the Executive and Harley-Davidson, Inc. The waiver of any breach of
any provision of this Agreement shall be effective only in the specific
instance and for the specific purpose for which given and shall not operate
or be construed as a waiver of any subsequent breach hereof.

                  18. SEVERABILITY. If any provision of this Agreement shall be
prohibited by or invalid under applicable law, or otherwise determined to be
unenforceable, such provision shall be ineffective to the extent of such
prohibition or invalidity without invalidating the remainder of such provision
or the remaining provisions of this Agreement. The headings in this Agreement
are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof.

                  IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed as of the date first written above.

EXECUTIVE:                          COMPANY:
                                    HARLEY-DAVIDSON FINANCIAL SERVICES, INC.

                                    By:
------------------------------        -------------------------------------
         Donna F. Zarcone              Jeffrey L. Bleustein
                                       Chairman and Chief Executive Officer

                                     -7-<PAGE>

                                                                    Exhibit 10.1

                                    EXECUTIVE
                               SEVERANCE AGREEMENT

This Severance Agreement ("Agreement") is made and entered into as of November
16, 1999 by and between Redwood Empire Bancorp and National Bank of the Redwoods
(collectively the "Employer"), and Patrick W. Kilkenny ("Executive").

Employer desires to employ Executive and Executive desires to be employed by
Employer, for the period and under the terms and conditions set forth in this
document. Therefore, in consideration of the mutual covenants and conditions
contained in this Agreement, the parties agree to the following:

To establish by this Agreement a mutually agreed upon Severance Agreement in the
event that the Employer no longer desires to retain the services of the
Executive.

1. TERM

The term of this Agreement shall be for five (5) years, terminating November 16,
2004. However, nothing in this Agreement should be interpreted as modifying
Employer's policy of at-will employment. Employer shall have the right to
terminate the Agreement at any time in accordance with the provisions of Section
Three. If this Agreement is terminated in such manner, all rights and duties of
Executive and Employer per this Agreement shall end. "Term" shall refer to the
entire period of employment of Executive by Employer, whether for the period
described above, whether terminated earlier, or extended by mutual agreement.
Notice of intent to extend and/or renegotiate the Agreement may be given to
Executive by Employer at least six months prior to the end of the term. Employer
and Executive agree that this document contains the entire understanding and
agreement between them regarding employment. The at-will nature of this
employment cannot be amended or supplemented in any respect except by further
written agreement.

2. COMPENSATION

Executive may also be eligible for participation in a Compensation Agreement.
That agreement would be a separate and a stand-alone agreement and not part of
this agreement.

3. TERMINATION

Employer has the right to terminate this agreement for any of the following
reasons, by providing written notice to Executive:

<PAGE>

a)    Willful breach of or habitual neglect of or failure to perform or
      inability to perform the Executive's duties and obligations, as determined
      by Employer;

b)    Conduct constituting a crime involving moral turpitude, illegal conduct or
      conviction of a felony as determined by the Employer's legal counsel, or
      any conduct detrimental to the interests of Employer as determined by the
      Board of Directors;

c)    Physical or mental disability rendering Executive incapable of performing
      the duties for which they are employed for a consecutive period of 180
      days, or by death; or

d)    Determination by the Board that the continued employment of Executive is
      detrimental to the best interests of Employer, or for any reason
      whatsoever as determined by the Board and in the sole and absolute
      discretion of the Board.

      I.    If this Agreement is terminated for any of the reasons listed in
            (a), (b), or (c) above, Executive will be paid one month's salary.
            This termination pay will be considered to be in full and complete
            satisfaction of any and all rights which Executive may enjoy under
            the terms of this Agreement other than rights, if any, provided for
            in other written agreements with Employer. Insurance benefits will
            continue to be provided by Employer until the end of the month in
            which termination occurs. If the Executive is terminated for the
            reason listed in (c) above (disability), and he receives an enhanced
            disability payment based on an Executive Salary Continuation
            Agreement, or other agreement, which is greater than one month's
            salary, then this one month's salary would not be paid.

      II.   If this Agreement is terminated for any reason listed in (d), above,
            Executive shall be entitled to termination pay in a lump sum equal
            to one years salary. This termination pay shall be considered to be
            in full and complete satisfaction of any and all rights which
            Executive may enjoy under the terms of this Agreement except for
            rights, if any, provided for in other written contracts with
            Employer. Executive must sign a release of liability in order to
            receive any termination pay representing three months pay or more.
            Insurance benefits shall be continued to be provided until the end
            of the month in which termination occurs.

      III.  If Executive is party to a separate salary continuation agreement in
            his/her capacity as an executive then the termination benefits in
            the salary continuation agreement are the only benefits that he will
            receive upon termination initiated by change of control. Section 3
            paragraph II with regards to the lump sum payment of the severance
            agreement will not be applicable. However, all other terms and
            conditions in Section 3 paragraph II will be applicable to a
            termination initiated by the change of control agreement.

A change in job duties (including transfer to a different subsidiary) will not
constitute termination within this agreement.

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Executive shall provide thirty days notice, in writing, in the event he
voluntarily terminates his employment.

4. EMPLOYEE BENEFITS

Employer will provide Executive with all employee benefits afforded all other
employees, as outlined in the Employer's Employee Handbook and other employee
communications. Except as may be stated in this Agreement, Executive is subject
to the same changes in benefits and other related plans (additions,
modification, deletions) as every other employee of Employer.

Executive may also be eligible for participation in an Employer Stock Option
Plan and/or Executive Salary Continuation Plan, as determined by the appropriate
Board of Directors. These would be separate and stand-alone Agreements, and not
part of this Severance Agreement unless specifically referenced within the
Severance Agreement.

5. NONCOMPETITION AND CONFIDENTIALITY

In the event Executive's employment is involuntarily terminated for any reason
listed in section 3 (d) above, Executive shall not, for a period of one year,
directly or indirectly, without the prior written consent of Employer's Board of
Directors (i) own, manage, operate, control, finance or participate in the
ownership, management, operation, control or financing of, or be connected as an
officer, director, employee, partner, principal, agent, representative,
consultant or otherwise with, any business or enterprise engaged in any business
which is competitive with or similar to Employer's banking business, within
Sonoma County or a 25 mile radius of Employer's banking operations (the
"Territory"); (ii) engage in any other manner, within the Territory, in any
business that is competitive with or similar to Employer's banking operations;
or (iii) induce or attempt to induce any person who is a customer, supplier,
distributor, officer or employee of Employer immediately prior to Executive's
termination to terminate such person's relationships with, or to take any action
that would be disadvantageous to Employer. Notwithstanding the above, Executive
shall not be deemed to be engaged directly or indirectly in and business in
contravention of paragraphs (i) or (ii) above, if (1) Executive participates in
any such business solely as a passive investor in up to 10% of the equity
securities or 10% of the debt securities of a company or partnership, or (2)
Executive is employed by a business or enterprise that is engaged primarily in a
business other than that which is competitive with or similar to Employer's
banking operations and Executive does not apply his expertise at such business
or enterprise to that part of such business or enterprise that is competitive
with or similar to employer's business or banking operations.

                                       3
<PAGE>

In addition, throughout their employment and following any termination,
Executive shall not make any use of trade secrets and other confidential
information relating to the business and properties of Employer. Upon
termination, Executive shall deliver all confidential documents now possessed or
acquired later.

6. CHANGE OF CONTROL

This Agreement shall not be terminated by the dissolution of Employer. However,
in the event proceedings for liquidation are commenced by the regulatory
authorities, this Agreement and all related rights and benefits shall terminate.
In the event of any merger or consolidation where Employer is not the surviving
or resulting corporation, or upon transfer of all or substantially all of the
assets of Employer, Executive shall be paid in accordance with the Executive
Salary Continuation Agreement (if such agreement is applicable), which is a
stand alone benefit program and not an Employment Agreement. This payment, if
applicable, shall be considered to be in full and complete satisfaction of any
and all rights which Executive may enjoy under the terms of this Agreement
except for rights, if any, provided for in other written contracts with
Employer.

7. RETURN OF DOCUMENTS & TRADE SECRETS

Executive agrees that all manuals, documents, programs, files, reports, studies,
instruments or other materials used and/or developed by Executive during the
term of employment are the sole property of Employer. Upon termination of this
Agreement, Executive or a representative shall promptly deliver all such
property to Employer, in good condition.

Without limiting the generality of section 5 above, and at all times after the
date of Executive's termination of employment with Employer, Executive (i) shall
make no use of any and all secrets and other confidential information, ideas,
knowledge, know-how, techniques, secret processes, improvements, discoveries,
methods, inventions, sales financial information, customer lists, plans,
concepts, strategies or products, as well as all documents, reports, drawings,
designs, plans and proposals otherwise pertaining to same, relating to the
business and properties of Employer of which Executive has acquired, or may
hereafter acquire, knowledge and possession as the Chief Executive Officer
(hereinafter referred to as "Trade Secrets"), or any other part thereof, (ii)
shall not disclose the Trade Secrets, or any other part thereof, to any other
person, and (iii) shall deliver, on and after Executive's termination, all
documents, reports, drawings, designs, plans, proposals, and other tangible
evidence of Trade Secrets, now possessed or hereafter acquired by Executive, to
Employer.

                                       4
<PAGE>

8. NOTICES

Any notice or other communication required or permitted by this Agreement shall
be considered to be properly given when personally served in writing, when
delivered via the US mail, or when communicated via facsimile, addressed as
follows:

To Employer:                        To Executive:

Redwood Empire Bancorp              Patrick W. Kilkenny
111 Santa Rosa Avenue               111 Santa Rosa Avenue
Santa Rosa, CA   95404              Santa Rosa, CA   95404
Attn.:  Board of Directors

9. APPLICABLE LAW

This Agreement shall be governed by and construed in accordance with the laws of
the State of California, except to the extent governed by the laws of the United
States.

10. PARAGRAPH HEADINGS

Paragraph headings used in this Agreement are for convenience only, and are not
a part of this Agreement and shall not be used in construing it.

11. INVALID PROVISIONS

If any provision of this Agreement is, for any reason, declared invalid, void or
unenforceable, the remaining portions shall continue in full force without being
affected in any way.

12. CONFIDENTIALITY

This agreement is to be held confidential. Breach of this confidentiality by
Executive will make him subject to termination under this Agreement.

13. ARBITRATION

If any disputes arise under this Agreement, the parties will first make a good
faith attempt at mediation. If this attempt is not successful, any remaining
controversy or claim arising out of or relating to this Agreement, or the breach
thereof, shall be settled pursuant to an arbitration agreement to be entered
into by the parties. In the event there is no arbitration

                                       5
<PAGE>

agreement, the rules of judicial arbitration will be used. Judgment upon the
award rendered by the arbitrator(s) may be entered into any court having
jurisdiction.

14. LEGAL COSTS

If either party commences an action against the other party arising out of or in
connection with this Agreement, the prevailing party shall be entitled to have
and recover reasonable attorney's fees and costs of suit or arbitration from the
losing party.

If an arbitration agreement is in place, costs will be covered per that
agreement. If a mediator is used, the parties will share said costs.

REDWOOD EMPIRE BANCORP                    EXECUTIVE
NATIONAL BANK OF THE REDWOODS

By:  /s/  Tom Whitaker                    /s/  Patrick W. Kilkenny
     -------------------------            --------------------------------------
Tom Whitaker                              Patrick W. Kilkenny
Chairman of the Board

Date: November 16, 1999                   Date: November 16, 1999
      -----------------------------             --------------------------------

                                       6

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