Document:

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                                  EXHIBIT 10-16
                                  -------------

                              EMPLOYMENT AGREEMENT
                              --------------------

         This EMPLOYMENT AGREEMENT made as of December 15, 2000 (the "EFFECTIVE
DATE"), by and between GENESEE CORPORATION, a New York corporation (the
"COMPANY"), and STEVEN M. MORSE (the "EXECUTIVE").

                    P R E L I M I N A R Y  S T A T E M E N T :

         WHEREAS, the Company and the Executive desire to enter into this
Agreement to establish the terms and conditions of Company's continued
employment of the Executive;

                              P R O V I S I O N S :

         NOW, THEREFORE, in consideration of the premises and the terms
hereafter set forth, the parties agree as follows:

         1. EMPLOYMENT. The Company agrees to employ the Executive in the status
described in Section 2, and the Executive agrees to accept such employment, upon
the terms and conditions hereafter set forth.

         2. TERM. The term of the Executive's employment under this Agreement
shall commence on the Effective Date and shall expire on of the first
anniversary of the Effective Date (subject to prior termination pursuant to
Section 8); provided, that such term shall be automatically renewed for further
periods of one year after each anniversary of the Effective Date each unless
either party shall give the other notice of non-renewal not less than ninety
(90) days prior to the expiration of the initial term or any one year renewal
term. The entire period during which the Executive shall be employed by the
Company pursuant to the terms of hereof is referred to as the "TERM OF
EMPLOYMENT."

         3. EMPLOYMENT SERVICES. At all times during the Term of Employment, the
Executive shall serve in the capacity of the Company's Vice President and
Treasurer, reporting to the President of the Company. In such capacity, the
Executive shall perform such duties and responsibilities commensurate with his
position, subject to the supervision of the President of the Company or his
designee. The Executive agrees to devote his best efforts to promote the
business and affairs of the Company and to perform on a full-time basis the
duties assigned to him from time to time in accordance with the terms hereof.

         4. LOCATION. Except with his consent, the Executive shall not be
required to perform duties that require his principal office or his residence to
be maintained outside the Rochester, New York area. However, the Executive shall
make himself available for reasonable business travel required by his position.

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         5. COMPENSATION.

            (a) During the Term of Employment, the Company shall pay the
Executive for all services rendered hereunder by the Executive in any capacity a
fixed salary at the rate of $85,000 per year (the "BASE SALARY"). The
Executive's salary shall be payable in accordance with the Company's customary
payroll practices. During the Term of Employment, the Executive's Base Salary
shall be reviewed at least annually commencing in December 2001 in accordance
with the Company's customary procedures and practices regarding executives. Any
increases in the Base Salary shall be at the sole and absolute discretion of the
Management Continuity Committee of the Company's Board of Directors (the "MCC").
In no event shall the Executive's Base Salary be reduced below $85,000 annually.

            (b) In recognition of the Executive's significant efforts during the
sale by the Company's wholly-owned subsidiary of substantially all of its
brewing business assets to High Falls Brewing Company, LLC ("HIGH FALLS"), the
Executive acknowledges that the Company has paid to the Executive a one-time
bonus of $10,000, which was fully earned and non-refundable upon payment
thereof.

            (c) During the Term of Employment, the Executive shall have the
opportunity to earn a bonus of up to 25% of his Base Salary during each complete
fiscal year of the Company. The Company's President or the MCC, in his or its
sole discretion, if any, shall determine the exact amount of the bonus. The
payment of any bonus awarded to the Executive shall be made within ninety (90)
days after the end of the fiscal year for which the bonus is awarded.

            (d) If the Term of Employment has not been previously terminated
pursuant to Section 8 and is not renewed pursuant to Section 2, then following
the expiration of the Term of Employment, the Company shall promptly thereafter
pay to Executive a lump-sum amount equal to the Base Salary in effect on the
Executive's last day of employment, provided that the Executive first executes
and unconditionally delivers to the Company a full and complete release of any
and all claims that the Executive may have against the Company and any of its
subsidiaries or affiliates and any of their respective officers, directors or
representatives arising out of or related to his employment with the Company or
any such related parties (other than for indemnification or advancement of
expenses in any litigation in Executive's capacity as an officer of the Company
which may be provided for under any of the Company's constituent documents or
any indemnification agreements) and which shall otherwise be satisfactory to the
Company in all respects (the "RELEASE").

            (e) In order to provide a source of retirement income to the
Executive, during the Term of Employment and until the Company establishes for
the benefit of the Executive a qualified retirement or pension plan, the
Executive shall earn on a pro rated daily basis an amount equal to 16.67% per
annum of the Executive's gross income reported (or reportable) on the W-2 Wage
Statement issued (or to be issued) by the Company to the Executive for the Term
of Employment (the "RETIREMENT PAYMENT"). The accrued Retirement Payment for
each fiscal year shall be due within ninety (90) days after the end of such
fiscal year, or on the Date of Termination (as defined below), whichever occurs
earlier.

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            (f) Simultaneously with the execution and delivery hereof, the
Company and the Executive shall execute and deliver the Stock Appreciation
Rights Agreement in the form of EXHIBIT A annexed hereto, pursuant to which the
Company shall grant to the Executive stock appreciation rights based on the
value of 5,289 shares of the Company's Class B common stock on the terms and
conditions set forth therein.

            (g) All payments to be made pursuant to Section 5(a) through 5(f)
shall be subject to all federal, state and local payroll, withholding and other
tax requirements.

            6. EXPENSES. The Company will pay or reimburse the Executive for any
expenses reasonably incurred by him in furtherance of his performance hereunder,
including expenses for professional licensing fees, dues for professional
membership organizations, continuing education expenses, entertainment, travel,
meals, hotel accommodations and the like, provided that such expenses are
properly documented and accounted for in accordance with such rules and policies
relating thereto as the Company may from time to time adopt.

         7. EXECUTIVE BENEFITS.

            (a) During the Term of Employment, the Executive and, as applicable,
the Executive's family, shall be entitled to receive or be compensated for
obtaining health, medical, life and disability benefits that are the
substantially comparable to those benefits and programs sponsored by the Company
immediately prior to the Effective Date and in which the Executive participated
as of such time. The Company and the Executive anticipate that Executive will
participate in the plans and programs sponsored by High Falls and that the
Company will be responsible for the premiums and other costs and expenses that
High Falls may incur due to Executive's participation in such plans and
programs.

            (b) During the Term of Employment, the Executive shall be entitled
to vacation not be less four (4) weeks per year, or such greater time as may be
approved by the MCC (prorated in any fiscal year during which the Executive is
employed under this Agreement for less than the entire year in accordance with
the number of days in such fiscal year during which he is so employed). In the
event that full vacation is not taken in any fiscal year due to the work
commitments of the Executive, the Executive may elect to accumulate such
vacation and carry it over to the following fiscal year, or receive payment (at
Executive's pro rated Base Salary). Upon any termination or resignation, the
Company shall pay the Executive the value of any accrued or accumulated unused
vacation time. The Executive, in his reasonable discretion and with the consent
of the Company's President, shall determine the time and intervals of his
vacation. The Executive shall also be entitled to all paid holidays given by the
Company to its senior executive officers.

            (c) During the Term of Employment, the Executive shall be entitled
to be reimbursed for tax return preparation fees up to a maximum of $1,000 per
tax year.

         8. TERMINATION.

            (a) TERMINATION FOR CAUSE. The Company may terminate the Term of
Employment for Cause (as defined below) at any time on notice to the Executive,
and thereby terminate all rights and obligations of the parties hereto as of the
date of such notice other than the Executive's obligations under Section 11. For
purposes of this Agreement, "CAUSE" shall mean (i) gross neglect, refusal or
inability by the Executive to substantially perform his duties under this
Agreement (other than any such failure resulting from the Executive's incapacity
due to Disability (as defined below)), after a demand for substantial
performance is delivered to the Executive by the President stating the manner in
which the Company believes the Executive has not substantially performed his
duties, and the Executive shall have failed to resume substantial performance of
such duties within ten (10) days of receiving such demand, (ii) the engaging by
the Executive in criminal conduct (including embezzlement and criminal fraud),
(iii) the commission by the Executive of a felony, (iv) any misappropriation of
funds or material damage to the property or businesses of the Company or any of
its affiliates by the Executive or (v) the material breach of Section 11 of this
Agreement by the Executive.

            (b) TERMINATION UPON DISABILITY. If, during the Term of Employment,
the Executive shall become incapable of fulfilling his obligations hereunder
because of injury or physical or mental illness (a "DISABILITY"), and such
incapacity shall exist for a period of three (3) consecutive months or such
shorter periods

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aggregating more than three (3) months during any twelve (12) consecutive months
during the Term of Employment, the Company may, upon at least ninety (90) days'
prior notice to the Executive, terminate the Term of Employment. An independent
physician selected by the Company shall determine the Disability of the
Executive.

            (c) TERMINATION BY DEATH. If the Executive dies during the term of
this Agreement, the Term of Employment and all rights and obligations of the
parties hereunder shall terminate immediately upon such death.

            (d) TERMINATION BY THE COMPANY OTHER THAN FOR CAUSE, DEATH OR
DISABILITY. The Company may terminate the Term of Employment other than pursuant
to Section 8(a), 8(b) or 8(c) at any time upon sixty (60) days advance notice to
the Executive.

            (e) TERMINATION BY THE EXECUTIVE. The Executive may terminate this
Agreement at any time upon sixty (60) days advance written notice to the
Company.

         9. CERTAIN PROVISIONS RELATING TO TERMINATION.

            (a) NOTICE OF TERMINATION. Any termination of the Executive's
employment by the Company or by the Executive which is effected by notice shall
be communicated by written Notice of Termination to the other party. For
purposes of this Agreement, a "NOTICE OF TERMINATION" shall mean a written
notice which shall indicate the provision in this Agreement relied upon to
terminate the Term of Employment.

            (b) DATE OF TERMINATION. "DATE OF TERMINATION" shall mean (i) if the
Executive's employment is terminated by his death, the date of his death, (ii)
if the Executive's employment is terminated for Disability, ninety (90) days
after Notice of Termination is given, (iii) if the Executive's employment is
terminated by the Company for Cause or without Cause, the date specified in the
Notice of Termination after the expiration of any cure periods, if
applicable,(iv) if the Executive's employment is terminated as a result of his
voluntary termination, the date set forth in the Executive's Notice of
Termination (but not beyond the then expiration date of the Term of Employment),
and (v) if the Executive's employment is terminated for any other reason, the
date on which a Notice of Termination is given after the expiration of any cure
periods. Notwithstanding anything to the contrary in this Agreement, the Term of
Employment shall terminate upon the Date of Termination.

         10. COMPENSATION UPON TERMINATION OF TERM OF EMPLOYMENT

            (a) TERMINATION WITHOUT CAUSE. In the event the Term of Employment
is terminated other than pursuant to Section 8(a), 8(b), 8(c) or 8(e), then the
Company shall, as liquidated damages, pay to the Executive in a lump-sum
promptly after the Date of Termination the following: (i) a lump-sum amount
equal to the Base Salary in effect on the last day of employment (subject to the
Company's receipt of a Release), (ii) the Base Salary due for what would have
been the remaining Term of Employment as of the Date of Termination (assuming no
renewal) (the "TERMINATED TERM OF EMPLOYMENT"), (iii) the value of the unused
vacation accrued as of the Date of Termination, (iv) an amount that the MCC
determines, in its sole discretion, is appropriate to compensate the Executive
for the bonus opportunity he had for the current year through the Date of
Termination for which no bonus has previously been paid and (v) the other
payments described in Section 10(d). In addition, in the event of such a
termination, subject to the last sentence of this Section 10(a), the Executive
shall be entitled to continue receiving the benefits provided in Section 7(a)
for up to twelve (12) months following the Date of Termination. Upon payment of
the foregoing, the Executive shall have no further right to receive any other
compensation or other benefits after such termination. The Executive shall not
be required to mitigate the amount of any payments provided for in this Section
10(a) by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Section 10(a) be reduced by any
compensation earned by the Executive as the result of employment by another
employer or by any retirement benefits. The Executive shall cease receiving any
of the Section 7(a) benefits provided for hereunder, however, on the first date
on which the Executive is eligible to receive the same type of benefit from a
new employer or entity for whom he is acting as an independent contractor. The
Executive shall cease receiving one type of Section 7(a) benefit, but not
another if he does not receive such other benefit in his new position.

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            (b) TERMINATION DUE TO CAUSE OR DEATH. In the event that the Term of
Employment terminates pursuant to Sections 8(a), 8(c) or 8(e), then the
Company's obligations to make payments to, and provide benefits for, the
Executive under Sections 5, 6 and 7 shall immediately cease as of the Date of
Termination.

            (c) COMPENSATION UPON TERMINATION DUE TO DISABILITY. In the event
the Executive is terminated pursuant to Section 8(b), then the Executive shall
continue (a) to be paid his Base Salary at the rate in effect at the time Notice
of Termination is given pursuant to Section 8(b) (less any disability payments
otherwise payable by or pursuant to plans provided by the Company); and (b) to
receive the other benefits provided for in Section 7(a), in each case, until the
earlier of twenty-seven (27) weeks after the Date of Termination or the date on
which the Term of Employment would have expired had it not been renewed
(assuming that no notice would be given to renew the Term of Employment).

            (d) EFFECT OF TERMINATION PAYMENTS. The payments and benefits (if
any) required to be provided to the Executive under this Section 10 shall be in
complete satisfaction of any claims that the Executive may have as a result of
termination of the Executive's employment; provided, however the termination of
this Agreement pursuant to Section 8 shall not terminate or limit the right of
the Executive (or his beneficiaries) to receive amounts of Base Salary,
unreimbursed expenses, additional compensation or benefits, if any, accrued but
unpaid or vested as of the Date of Termination, including the Retirement
Payment.

         11. OTHER DUTIES OF EXECUTIVE DURING AND AFTER TERM OF EMPLOYMENT.

            (a) COOPERATION IN LITIGATION. Both during and after the Term of
Employment, the Executive shall, upon reasonable notice, furnish such
information as may be in his possession to, and cooperate with, the Company as
may reasonably be requested by the Company in connection with any litigation in
which the Company or any of its subsidiaries and affiliates is or may become a
party (except for any litigation in which the Company and any of its affiliates
and subsidiaries, on the one hand, and the Executive, on the other hand, have
one or more claims against one another), provided that after the Term of
Employment the Company agrees to pay and be responsible for all of the
Executive's reasonable and documented out-of-pocket expenses incurred in
connection therewith.

            (b) CERTAIN ACTIVITIES DURING EMPLOYMENT. Except with the prior
written consent of the President, the Executive will not during the Term of
Employment undertake or engage in any other employment, occupation or business
enterprise other than one in which he is an inactive investor. This provision
shall not be deemed to preclude (i) the Executive from serving on the board of
directors of a reasonable number of other corporations upon the advance notice
to the President, or (ii) membership in professional societies or trade
associations or lecturing or the acceptance of honorary positions, in all cases,
that are incidental to his employment by the Company and which are not adverse
or antagonistic to the Company or its business prospects, whether financial or
otherwise. The Executive will also not acquire, assume or participate in,
directly or indirectly, any position, investment or interest adverse or
antagonistic to the Company or its business or prospects, whether financial or
otherwise, or take any action towards any of the foregoing. Further, during the
Term of Employment, except on behalf of the Company or its subsidiaries, the
Executive will not, directly or indirectly, whether as an officer, director,
employee, stockholder, partner, proprietor, associate, representative or
otherwise, become or be interested in any other person, corporation, firm,
partnership or other entity whatsoever which directly competes with the Company,
in any part of the world, in any line of business engaged in (or which the
Company has made plans to be engaged in) by the Company; provided, however, that
anything above to the contrary notwithstanding, Executive may own, as an
inactive investor, securities of any competitor corporation, so long as his
holdings in any one such corporation shall not in the aggregate constitute more
than 1% of the voting stock of such corporation.

            (c) UNAUTHORIZED DISCLOSURE. During the Term of Employment and for a
two (2) year period thereafter, the Executive shall not, without the written
consent of the Company's Board of Directors or a person authorized thereby,
disclose to any person, other than an employee of the Company (or its
subsidiaries) or a person to whom disclosure is reasonably necessary or
appropriate in connection with the performance by the Executive of his duties as
an employee of the Company, any confidential information obtained by him while
in the employ of the Company with respect to any of the Company's customers,
suppliers, creditors, lenders or investment bankers; provided, however, that
confidential information shall not include any information known generally to
the public (other than as a result of unauthorized disclosure by the Executive)
or any information of a type not otherwise

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considered confidential by persons engaged in the same business or a business
similar to that conducted by the Company.

            (d) NON-SOLICITATION OF EMPLOYEES. During the Term of Employment and
for a period of two (2) years thereafter, the Executive shall not, directly or
indirectly, without the written consent of the Company's Board of Directors or a
person authorized thereby, for himself or for any other person, firm,
corporation, partnership, association or other entity, attempt to employ or
enter into any contractual arrangement with any employee or former employee of
the Company, unless such employee or former employee has not been employed by
the Company for a period in excess of six (6) months.

            (e) BOOKS AND RECORDS. All books, records, accounts and similar
repositories of confidential information of the Company, whether prepared by the
Executive or otherwise coming into the Executive's possession, shall be the
exclusive property of the Company and shall be returned immediately to the
Company upon termination or expiration of this Agreement or upon request at any
time by the Company's Board of Directors or President.

            (f) INJUNCTION. The Company and the Executive acknowledge that a
breach by the Executive of any of the agreements contained in this Section 11
may cause irreparable harm or damage to the Company, or its subsidiaries, the
monetary amount of which may be virtually impossible to ascertain. As a result,
the Executive and the Company agree that the Company and any of its subsidiaries
shall be entitled to an injunction issued by any court of competent jurisdiction
enjoining and restraining any and all violations of such agreements by the
Executive or his associates, affiliates, partners or agents, and that such right
to an injunction shall be cumulative and in addition to whatever other remedies
the Company may possess.

         12. BINDING EFFECT; AMENDMENTS. This Agreement will bind and inure to
the benefit of the heirs, personal representatives, successors and assigns of
the parties and may be modified and varied only in writing signed by the parties
hereto.

         13. NOTICES. All notices hereunder shall be given in writing by
personal delivery or by recognized overnight courier (such as Federal Express)
addressed to the President of the Company at its principal place of business and
to the Executive at his residence address as then listed in the Company records.

         14. CONSOLIDATION, MERGER, OR SALE OF ASSETS. Nothing in this Agreement
shall preclude the Company from consolidating or merging into or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertakings of the Company
hereunder. The Company shall promptly provide the Executive with a copy of any
such assumption instrument. Unless the Executive agrees to the contrary, any
such assumption shall not relieve the Company of its obligations hereunder Upon
such consolidation, merger or transfer of assets and such assumption, the term
"Company" as used herein shall mean such other corporation and this Agreement
shall continue in full force and effect and the Company shall be jointly and
severally liable for such other corporation's obligations.

         15. GOVERNING LAW. This Agreement and the interpretation and
performance thereof shall be governed by and interpreted in accordance with the
laws of the State of New York without giving effect to its principles of
conflict of laws.

         16. SEVERABILITY. In case any one or more of the provisions or part of
a provision contained in this Agreement shall for any reason be held to be
invalid, illegal or unenforceable in any respect in any jurisdiction, such
invalidity, illegality or unenforceability shall be deemed not to affect any
other jurisdiction or any other provision or part of a provision of this
Agreement, but this Agreement shall be reformed and construed in such
jurisdiction as if such provision or part of a provision held to be invalid or
illegal or unenforceable had never been contained herein and such provision or
part reformed so that it would be valid, legal and enforceable in such
jurisdiction to the maximum extent possible.

         17. ENTIRE AGREEMENT. This Agreement, together with the other
agreements referred to herein, sets forth the entire agreement between the
parties with respect to the employment and compensation of the Executive by

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the Company and supersedes all prior agreements, negotiations and
communications, written or oral, with respect thereto, including, but not
limited to, letters or Board or MCC minutes approving any such terms at any
time.

         18. BINDING AND ENFORCEABLE AGREEMENT. The Company represents and
warrants to the Executive that it has all requisite power and authority to
execute, deliver, and perform this Agreement and all necessary corporate
proceedings of the Company and has been duly taken to authorize the execution,
delivery, and performance of this Agreement by it and that this Agreement
constitutes its binding obligation enforceable in accordance with its terms.

                                       ***

                             SIGNATURE PAGE FOLLOWS

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

                                        GENESEE CORPORATION

                                        By:   /s/ Stephen B. Ashley
                                              ---------------------
                                        Name: Stephen B. Ashley
                                        Title:   President

                                        /s/Steven M. Morse
                                        ------------------
                                        Steven M. Morse

                                LIST OF EXHIBITS

               Exhibit A        -        Stock Appreciation Rights Agreement

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                                    EXHIBIT A
                       STOCK APPRECIATION RIGHTS AGREEMENT
                       -----------------------------------

         This STOCK APPRECIATION RIGHTS AGREEMENT dated as of December 15, 2000
(the "EFFECTIVE DATE") between GENESEE CORPORATION, a New York corporation (the
"COMPANY"), and STEVEN M. MORSE, an Executive of the Company (the "EXECUTIVE").

                   P R E L I M I N A R Y  S T A T E M E N T :

         WHEREAS, the Company and the Executive have entered into a certain
Employment Agreement dated as of December 15, 2000 (the "EMPLOYMENT AGREEMENT"),
pursuant to which the Company agreed to award the Executive stock appreciation
rights providing him with an opportunity to recognize value for appreciation in
the value of the Company's Class B common stock on the terms and conditions set
forth herein;

                              P R O V I S I O N S :

         NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants hereinafter set forth, and for other good and valuable consideration,
the parties hereto agree as follows:

         1. STOCK APPRECIATION RIGHT AWARD. Subject to the terms and conditions
hereafter set forth (including adjustments pursuant to Sections 6 and 7), the
Company hereby grants to the Executive 5,289 stock appreciation right units (the
"SAR UNITS").

         2. BASE PRICE. Subject to adjustments pursuant to Sections 6 and 7, the
base price-per-SAR Unit is $25.31 (the "BASE PRICE").

         3. TERM AND EXPIRATION DATE. This Agreement and the SAR Units granted
hereby shall expire and terminate upon the earlier to occur of (a) the first
anniversary after the termination of the Executive's employment with the Company
for Cause (as defined in the Employment Agreement) or due to the Executive's
resignation, (b) the date on which the Company distributes its final liquidating
dividend to its shareholders, or (c) 5:00 p.m. on December 15, 2011 (the
"EXPIRATION DATE").

         4. EXERCISE TERMS AND PROCEDURES.

            (a) The SAR Units may be exercised any time between the Effective
Date and the Expiration Date. During such period, the SAR Units may be exercised
on any date (each an "EXERCISE DATE") as to all or part to the extent then
exercisable. The partial exercise of the SAR Units shall not cause the
expiration, termination or cancellation of the remaining portion thereof.

            (b) The SAR Units shall be exercised only by delivering a notice of
such exercise to the Company's President, no less than one business day in
advance of the effective date of the proposed exercise. Such notice shall
specify the number of SAR Units that are being exercised and the effective date
of the proposed exercise. The Executive may withdraw such notice at any time
prior to the close of business on the business day immediately preceding the
effective date of the proposed exercise. The SAR Units may be exercised only
once with respect to each SAR Unit.

         5. PAYMENT UPON EXERCISE OF STOCK APPRECIATION RIGHT.

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            (a) Upon the exercise of a SAR Unit, the Executive shall receive an
amount ("SAR PAYMENT AMOUNT") equal to the product of (i) the excess of (A) the
Fair Market Value of one share of the Company's Class B common stock (the
"STOCK") on the Exercise Date over (B) the Base Price, multiplied by (ii) the
number of SAR Units exercised. The Company shall endeavor to pay the SAR Payment
Amount in cash, without interest, within thirty (30) days after the Exercise
Date with respect thereto.

            (b) As used herein, "FAIR MARKET VALUE" shall mean, with respect to
a share of Stock on any given date, the average of the high and low sale prices
of the Stock on a national exchange during the five (5) trading days immediately
preceding the Exercise Date with respect to which the Fair Market Value is being
determined.

         6. PAYMENTS IN CONNECTION WITH DIVIDENDS. In the event that after the
Effective Date the Company makes any dividend distribution upon or with respect
to its Stock (other than a regular quarterly or annual dividend) ("LIQUIDATING
DISTRIBUTION"), then the Base Price shall be reduced to the extent of the amount
thereof is paid with respect to each outstanding share of Stock. After the Base
Price has been reduced to zero, then for the balance of the Liquidating
Distribution that reduced the Base Price to zero and for each Liquidating
Distribution thereafter declared and paid, the Executive shall receive an amount
equal to the amount which would be distributed to him if he held one share of
Stock for each SAR Unit not previously exercised as of or prior to the record
date for such Liquidating Distribution.

         7. CHANGES IN STOCK, ETC. In the event of any stock dividend, stock
split, reverse stock split, recapitalization, exchange of shares or similar
change in capitalization affecting the outstanding Stock, the Management
Continuity Committee of the Board of Directors (the "MCC") shall make
adjustments in the (i) number of SAR Units and the rights with respect thereto
and/or (ii) the Base Price, in the manner and to the extent the MCC believes in
good faith is fair and equitable under the circumstances. In the event of any
merger or consolidation, the MCC may make such substitution or adjustment in the
number of SAR Units and in the Base Price as it may determine in good faith are
fair and equitable under the circumstances, or accelerate, amend or terminate
the terms applicable to the SAR Units upon such terms and conditions as it shall
provide. Notwithstanding the foregoing, in the event that all or any portion of
the SAR Units are terminated and not replaced with a similar award, the MCC
shall deliver to the Executive such payment or other consideration as the MCC
deems in good faith to be fair and equitable under the circumstances.

         8 WITHHOLDING TAXES. All payments under this Agreement shall be net of
an amount sufficient to satisfy all federal, state and local payroll,
withholding and other tax requirements.

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         9. NATURE OF PAYMENTS.

            (a) Any and all payments hereunder shall be paid in consideration of
services performed for the Company or its Subsidiaries or for their benefit by
the Executive.

            (b) All such payments shall constitute a special incentive payment
to the Executive and shall not, unless otherwise determined by the MCC or unless
otherwise expressly provided in any applicable plan document or agreement, be
taken into account in computing the amount of salary or regular compensation of
the Executive for the purposes of determining any other benefits to which the
Executive may be entitled.

         10. OTHER PAYMENTS OR AWARDS. Nothing contained in this Agreement shall
be deemed in any way to limit or restrict the Company, any Subsidiary thereof or
the MCC from making any award or payment to the Executive under any other plan,
agreement, arrangement or understanding, whether now existing or thereafter in
effect, nor shall anything contained in this Agreement create a right of the
Executive to receive any other type of award or compensation.

         11. RIGHT TO TERMINATE EMPLOYMENT. Nothing in this Agreement shall
confer upon the Executive the right to continue in the employment of the Company
or any of its Subsidiaries or affect any right which the Company or any of its
Subsidiaries may have to terminate the employment of the Executive.

         12. NON-TRANSFERABILITY. No rights granted to the Executive under this
Agreement shall be assignable or transferable by the Executive, except by will
or by the laws of descent and distribution. During the life of the Executive,
all rights granted to the Executive under this Agreement shall be exercisable
only by the Executive or by the Executive's guardian or legal representative.

         13. ADMINISTRATION.

            (a) The MCC shall have and exercise all of the power and authority,
among other things, (i) to construe, interpret and implement this Agreement, and
(ii) to take all determinations necessary or advisable in administering this
Agreement. The Executive hereby acknowledges that all decisions, determination
and interpretations made in good faith by the MCC in respect of this Agreement
and the SAR Units shall be final and conclusive and binding on the parties.

            (b) No member of the MCC shall be liable for any action or
determination made in good faith with respect to this Agreement and the SAR
Units.

         14. NO RIGHTS AS A STOCKHOLDER. The parties agree and acknowledge that
this Agreement does not confer upon the Executive as the holder of the SAR Units
any right or interest as a shareholder of the Company, and that no fiduciary
duties are owed by the Company or its directors, officers and shareholders in
respect of this Agreement or the SAR Units. The Executive further agrees and
acknowledges that the Company is not, and shall not be, restricted or limited in
any manner from engaging in any transactions that may have dilutive effects,
entering into or modifying any financing agreements that restrict or limit
payments of dividends, reorganizations or recapitalizations, or otherwise taking
any actions that may affect the SAR Units granted hereunder.

         15. NOTICES. All notices hereunder shall be given in writing by
personal delivery or by recognized overnight courier (such as Federal Express)
addressed to the President of the Company at its principal place of business and
to the Executive at his residence address as then listed in the Company records.

         16. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and the successors and assigns of the
Company and, to the extent set forth in Section 12 hereof, to the heirs and
personal representatives of the Executive.

<PAGE>   12
                                                                  Page 82 of 141

         17.  INTEGRATION. This Agreement together with the Employment
Agreement contains the entire understanding of the parties with respect to its
subject matter. There are no restrictions, agreements, promises,
representations, warranties, covenants or undertakings with respect to the
subject matter hereof other than those expressly set forth herein. This
Agreement supersedes all prior agreements and understandings between the parties
with respect to its subject matter, and may only be amended with a writing
signed by both parties.

         18. NEW YORK LAW. This Agreement shall be governed and construed in
accordance with the internal laws of the State of New York.

                                       ***
                             SIGNATURE PAGE FOLLOWS

<PAGE>   13
                                                                  Page 83 of 141

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date and year first above written.

                                       GENESEE CORPORATION

                                       By       /s/ Stephen B. Ashley
                                                ---------------------
                                       Name:    Stephen B. Ashley
                                       Title:   President

                                        /s/ Steven M. Morse
                                       ------------------------------
                                       Steven M. Morse<PAGE>   1
                                                                  Page 84 of 141

                                  EXHIBIT 10-17
                                  -------------

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS AGREEMENT made by and between GENESEE CORPORATION, together with
its subsidiaries ("Genesee"), and KARL D. SIMONSON ("Executive"), on the 25th
day of January, 2000 (the "Effective Date").

                                R E C I T A L S :

         A. Genesee wishes to employ Executive.

         B. Executive wishes to accept employment with Genesee.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements set forth below, the parties agree as follows:

            1. EMPLOYMENT. Genesee hereby agrees to employ Executive and
Executive hereby agrees to be employed by Genesee upon the terms and conditions
hereinafter set forth.

            2. DUTIES. Executive shall serve as the PRESIDENT OF ONTARIO FOODS.
INC., and shall perform the duties for such position established by the by-laws
of Genesee, the customary duties of such position and such other commensurate
duties as may be assigned from time to time by, and shall report to the
President of Genesee Corporation. Executive shall devote all of Executive's
working time and attention and best efforts to the business of Genesee and shall
perform Executive's duties in a diligent, effective and loyal manner.

            3. COMPENSATION. Executive shall be compensated for all services to
be rendered pursuant to this Agreement, as follows:

               (a) During the Initial Term of this Agreement, Genesee shall pay
Executive a base salary of no less than Executive's current annual salary (the
"Base Salary"). The Base Salary shall be paid to Executive in accordance with
the normal payroll practices of Genesee.

               (b) The President of Genesee in conjunction with Genesee's
Management Continuity Committee ("MCC") shall review Executive's salary
following expiration of the Initial Term, and may modify Executive's Base Salary
in accordance with its established policies and procedures. Notwithstanding the
foregoing, Executive's salary following the Initial Term shall not be set in an
amount less than ninety percent (90%) of the Base Salary.

               (c) In addition to the Base Salary, Executive shall be eligible
to receive an annual bonus (the "Annual Bonus") upon the achievement of certain
goals as

<PAGE>   2
                                                                  Page 85 of 141

agreed upon in advance between Executive and Genesee for each fiscal
year of Genesee up to a maximum of THIRTY-FIVE (35%) of his Base Salary. The MCC
shall have sole and absolute discretion to determine whether an Annual Bonus
will be awarded for any fiscal year. Up to fifty percent (50%) of any declared
bonus may be paid in the form of Genesee stock, as determined by the MCC. Any
Annual Bonus approved by the MCC shall be due and payable within ninety (90)
days after the end of the Company's fiscal year for which such bonus was
awarded.

               (d) LONG TERM INCENTIVE.

                   (i) In addition to the Base Salary and the Annual Bonus,
Genesee hereby grants to the Executive the option to purchase from Genesee,
subject to the terms and conditions of this Section 3(d) and Genesee's 1992
Stock Plan (the "Plan"), the number of shares of Genesee Class B common stock at
the purchase price per share, all as approved by the MCC on January 24, 2000
(the "Options"), such options to be exercised as hereinafter provided:

                       (A) The aggregate number of Options that the Executive
may exercise as of any date may not exceed the number of Options in which he is
vested as of that date, reduced by the number of Options previously exercised by
the Executive. In the event of any change in the outstanding shares of Genesee
Class B common stock by reason of any stock dividend, split, recapitalization,
merger, consolidation, combination or exchange of shares or similar corporate
change, the number of Options awarded to the Executive shall be equitably
adjusted by the MCC to preserve the benefits of this Agreement to the Executive,
as determined by the MCC.

                       (B) Any election by the Executive to exercise Options
shall be made in writing, shall be signed by the Executive, shall specify the
date as of which the exercise is to occur, shall be filed with the Secretary of
Genesee prior to the date the exercise is to occur and shall be in such form,
and shall contain such information, as the Secretary may reasonably require. The
filing of the Executive's election to exercise the Options shall be deemed to
have occurred on the date it is received by the Secretary of Genesee or, if sent
to the Secretary by registered mail, postage pre-paid, return receipt request,
the date on which it is sent.

                       (C) PAYMENT OF OPTION PRICE. At the time of any exercise,
the purchase price of the shares as to which this option is being exercised
shall be paid: (a) in cash or by check; (b) by delivery of shares of Genesee
Common Stock registered in the name of the Executive, duly assigned to Genesee,
and having a fair market value on the exercise date equal to the purchase price;
(c) by delivery of instructions to Genesee to withhold from the shares that
would otherwise be issued on the exercise that number of whole shares having a
fair market value equal to the purchase price; or (d) by a combination of the
foregoing. Any shares delivered to Genesee in payment of the purchase price
shall be deemed to have a value per share equal to the fair market value of the
shares on the date the shares are delivered to Genesee.

<PAGE>   3
                                                                  Page 86 of 141

                   (ii) The Executive shall be vested in one quarter (1/4) of
the Options as of the Effective Date. The Executive shall become vested in the
remaining Options in accordance with the following vesting schedule:

                       (A) One quarter of the Options shall become vested when
Genesee's Class B Common Stock trades at or above $30 per share for ten days
during any period of thirty consecutive Trading Days (as defined below).

                       (B) One quarter of the Options shall become vested when
Genesee's Class B Common Stock trades at or above $35 per share for ten days
during any period of thirty consecutive Trading Days.

                       (C) The final quarter of the Options shall become vested
when the Genesee's Class B Common Stock trades at or above $40 per share for ten
days during any period of thirty consecutive Trading Days. A "Trading Day" is
defined as any day on which at least one trade of Genesee's Class B Common Stock
is reported on the NASDAQ National Market System.

Notwithstanding the foregoing, all of the remaining Options shall immediately
vest and become exercisable upon a Sale of the Company or upon the circumstances
provided in Sections 7(d) and (e).

                  (iii) As used herein, "Sale of the Company" shall mean that
any of the following circumstances have occurred:

                       (A) Any "person" (as such term is used in Sections
3(a)(9) and 13(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) is or becomes the "beneficial owner" (as defined in Rule
13(d)-3 under the Exchange Act), directly or indirectly, of ninety percent (90%)
or more of the outstanding common stock of Genesee excluding those shares owned
or controlled by direct descendants of John L. Wehle, trusts established by
Elizabeth R. Wehle and under the Wills of Louis A. Wehle and John L. Wehle and
any trustees thereunder (collectively, the "Wehle Shares").

                       (B) Stockholders of Genesee approve and there is closed a
(1) tender offer, merger or consolidation of Genesee with any other "person"
(defined above) in which any "person" acquires more than ninety percent (90%) of
Genesee's outstanding common stock other than the Wehle Shares; or (2) sale or
disposition by Genesee and it subsidiaries (other than Ontario Foods,
Incorporated) of more than eighty-five percent (85%) of the fair market value of
their assets and the net proceeds are distributed to creditors and stockholders.

                   (iv) Unless terminated earlier in accordance with the terms
of this Agreement, the Options shall expire on September 1, 2008 (Expiration
Date).

                   (v) The Executive shall have no rights as a shareholder with
respect to any shares for which he is granted an option until the date of
issuance to the Executive of a stock certificate for such shares and no
adjustment shall be made for

<PAGE>   4

                                                                  Page 87 of 141

any dividends or other rights the record date for which is prior to the date
such stock certificate is issued.

                   (vi) The Executive may not elect to exercise any Options
after the date occurring after the forty-fifth (45th) day following the last day
of the Term. Any Options that have not been exercised as of 5:00 p.m. on such
forty-fifth (45th) day shall be automatically forfeited and of no further force
or effect as of and after such time. In cases of termination due to disability,
Sale of the Company or termination without cause, Options under this provision
may be exercised within 120 days of termination. In the case of death of the
Executive, Options may be exercised by a representative of the Executive's
estate within 120 days of death. An Executive who is discharged for cause shall
have no right to exercise Options after termination.

                   (vii) The Executive may not sell, assign, pledge or transfer,
other than by law of descent and distribution, any Options, and any Options and
any rights under this Agreement shall not be subject to the claims of creditors
of the Executive other than Genesee.

                   (viii) GENERAL RESTRICTIONS. Genesee shall not be required to
deliver any certificate upon the exercise of any Options until it has been
furnished with such opinion, representation or other document as it may
reasonably deem necessary to insure compliance with any law or regulation of the
Securities and Exchange Commission or any other governmental authority having
jurisdiction over Genesee or the shares subject to such Options. The Options are
also subject to the requirement that if at any time the Board of Directors of
Genesee shall determine, in its discretion, that the listing, registration or
qualification of the shares subject to the Options upon any securities exchange
or under any state or federal law, or the consent or approval of any
governmental regulatory body, is necessary or desirable as a condition of, or in
connection with, the granting of the Options or the issue or purchase of shares
hereunder, the Options shall not be exercised in whole or in part unless such
listing, registration, qualification, consent or approval shall have been
effected or obtained free of any conditions not acceptable to the Board of
Directors of Genesee.

                   (ix) PLAN CONTROLS. The Executive hereby acknowledges receipt
of a copy of the Plan or the availability of a copy of the Plan, and agrees to
be bound by all of the terms and provisions thereof including any which may
conflict with those contained in this Agreement.

                   (x) NON-INCENTIVE OPTIONS. Pursuant to the provisions of the
Genesee Corporation 1992 Stock Plan, the stock options granted in this section
are deemed to be non-incentive stock options.

            4. BENEFITS.

                       (a) Executive shall be provided with the following
benefits:

<PAGE>   5
                                                                  Page 88 of 141

                  (i) Four (4) weeks of paid vacation per fiscal year, or such
greater period as may be approved from time to time by Genesee. In the event
that the full vacation is not taken in any year due to the work commitments of
Executive, Executive may elect to either accumulate such vacation and carry it
over to the following year or receive payment (at Executive's pro-rated Base
Salary) for unused vacation days. Upon any termination or resignation of
Executive, Executive will be entitled to be paid the value of any accrued or
accumulated vacation time;

                  (ii) Paid holidays, personal days, sick time, health care
coverage, life insurance and other benefits as customarily provided to other
comparable employees of Genesee;

                  (iii) The Executive shall be entitled to participate in all
non-stock or non-equity based employee benefit plans or arrangements made
available to all of Genesee's senior management or key employees from time to
time, subject to and on a basis consistent with the terms, conditions and
overall administration of such plan or arrangement. Such plans and arrangements
shall include, without limitation, all pension and retirement plans,
supplemental pension and retirement plans, savings and profit sharing plans,
life insurance policies, officers and directors policies, life insurance plans,
medical and health insurance plans, disability plans, dental plans, health and
accident plans or similar plans or arrangements. Nothing paid to the Executive
under any plan or arrangement presently in effect or made available in the
future shall be deemed to be in lieu of the Base Salary or any other obligation
payable to the Executive pursuant to this Agreement. The Executive expressly
acknowledges that he shall not be entitled to, and he shall not participate on a
going forward basis in, Genesee's 1986 Incentive Bonus Plan, Genesee's Stock
Bonus Program or Incentive Stock Option Plan or any other stock or equity based
program adopted by Genesee or any subsidiary as of and after the date hereof.
Benefits currently vested or otherwise available under the terms of the
aforementioned plans will continue to be vested or available as the plans allow,
including without limitation, the unissued balance of shares awarded on June 17,
1999, under the Stock Bonus Program.

                  (iv) Upon the submission of supporting documentation by the
Executive, Genesee shall reimburse the Executive for all reasonable expenses
actually paid or incurred by the Executive in the course of and pursuant to the
business of Genesee, including expenses for travel and entertainment.

                  (v) Executive shall be provided with, at Genesee's option,
either: (a) the use of a Genesee-owned vehicle which value shall not exceed a
retail price of $22,000 or (b) a car allowance in the amount of Four Hundred
Fifty Dollars ($450.00) per month.

              (b) Executive's eligibility for any benefit provided herein shall
be subject to Executive's compliance with the reasonable requests of any
insurance company providing any of the benefits specified herein to Genesee's
employees. Executive agrees to submit to any medical examination and to provide
and complete any documentation

<PAGE>   6
                                                                  Page 89 of 141

(including medical records) required by any such insurance company. All benefits
provided for hereunder are taxable to Executive to the extent required by
applicable tax laws.

              5. TERM OF EMPLOYMENT. The Initial Term of Executive's employment
pursuant to this Agreement shall be for two (2) years, commencing on the
Effective Date. The Term of this Agreement shall automatically renew for
successive periods of one (1) year each, unless one party shall give the other
party notice to the contrary at least ninety (90) days prior to the expiration
of the Initial Term or the then current term (the Initial Term, together with
all such renewals being the "Term").

              6. TERMINATION.

                   (a) TERMINATION EVENTS. The Executive's employment under this
Agreement may be terminated upon the occurrence of any of the following
circumstances by the indicated party:

                       (i) DEATH. Automatically upon the Executive's death.

                       (ii) DISABILITY. By Genesee, if, as a result of the
Executive's incapacity due to physical or mental illness ("Permanent
Disability"), the Executive shall be unable to substantially perform Executive's
duties under this Agreement for three (3) consecutive months as determined by a
medical doctor retained by Genesee, and if within ninety (90) days after written
Notice of Termination (defined below) is given (which notice may only be given
after the end of such three (3) month period), the Executive shall not have
returned to the performance of his duties under this Agreement.

                       (iii) FOR CAUSE. By Genesee, for Cause. For purposes of
this Agreement, "Cause" shall mean (A) neglect, refusal or inability by the
Executive to substantially perform his duties under this Agreement (other than
any such failure resulting from the Executive's incapacity due to Permanent
Disability), after a demand for substantial performance is delivered to the
Executive by the President or the MCC stating the manner in which Genesee
believes the Executive has not substantially performed his duties, and the
Executive shall have failed to resume substantial performance of such duties
within sixty (60) days of receiving such demand, (B) the engaging by the
Executive in criminal conduct (including embezzlement and criminal fraud), (C)
the commission by the Executive of a felony or a misdemeanor, (D) any
misappropriation of funds or material damage to the property or businesses of
Genesee or any of its affiliates by the Executive or (E) the material breach of
Section 8 of this Agreement by the Executive.

                       (iv) WITHOUT CAUSE. By Genesee without Cause upon written
notice to the Executive of its election to do so.

                       (v) VOLUNTARY TERMINATION. By the Executive other than
due to the Executive's death or Permanent Disability ("Voluntary Termination"),
upon at least four (4) weeks notice.

<PAGE>   7
                                                                  Page 90 of 141

                       (vi) SALE OF THE COMPANY. By Genesee upon the Sale of the
Company, or upon the sale of Ontario Foods, Inc.

                    (b) NOTICE OF TERMINATION. Any termination of the
Executive's employment by Genesee or by the Executive shall be communicated by
written Notice of Termination to the other party. For purposes of this
Agreement, a "Notice of Termination" shall mean a written notice which shall
indicate the provision in this Agreement relied upon to terminate the Term. The
Executive may not give a Notice of Termination for Voluntary Termination more
than thirty (30) days prior to the Date of Termination (defined below) stated
therein.

                    (c) DATE OF TERMINATION. "Date of Termination" shall mean
(i) if the Executive's employment is terminated by his death, the date of his
death, (ii) if the Executive's employment is terminated for Permanent
Disability, ninety (90) days after Notice of Termination is given (provided that
the Executive shall not have returned to the performance of his duties during
such ninety (90) day period), (iii) if the Executive's employment is terminated
by Genesee for Cause, without cause or upon Sale of the Company or sale of
Ontario Foods, Inc., the date specified in the Notice of Termination after the
expiration of any cure periods, if applicable, (iv) if the Executive's
employment is terminated as a result of his Voluntary Termination, the date set
forth in the Executive's Notice of Termination (but not beyond the then
expiration date of the Term), and (v) if the Executive's employment is
terminated for any other reason, the date on which a Notice of Termination is
given after the expiration of any cure periods. Notwithstanding anything to the
contrary in this Agreement, the Term shall expire upon the Date of Termination.

                 7. COMPENSATION UPON TERMINATION OR DURING DISABILITY.

                    (a) DEATH. If the Executive's employment shall be terminated
by reason of his death, Genesee shall pay to such person as the Executive shall
have designated in a notice filed with Genesee, or, if no such person shall have
been designated, to his estate, (i) any unpaid amounts of his Base Salary or
declared Annual Bonus and accrued vacation pay prior to the Date of Termination,
and (ii) any payments the Executive's spouse, beneficiaries or estate may be
entitled to receive pursuant to any pension or Executive benefit plan, life
insurance policy or other plan, program or policy then maintained or provided by
Genesee, or any other agreement between the Executive and Genesee. The payments
and other benefits described in this Section 7(a) are hereinafter referred to as
the "Termination Benefits".

                    (b) DISABILITY. During any period that the Executive fails
to perform his duties hereunder as a result of incapacity due to physical or
mental illness, the Executive shall continue to receive his full Base Salary
until the Executive's employment is terminated pursuant to Section 6 hereof. The
Executive shall continue to be paid in bi-monthly installments an amount equal
to his Base Salary at the rate in effect at the time Notice of Termination is
given until the later of twenty-seven (27) weeks after the Date of Termination
or the expiration of the Term, less any disability payments otherwise payable by
or pursuant to plans provided by Genesee. In addition, Genesee shall pay to the
Executive the Termination Benefits.

<PAGE>   8
                                                                  Page 91 of 141

                    (c) FOR CAUSE. If the Executive's employment shall be
terminated by Genesee for Cause, Genesee shall pay the Executive the Termination
Benefits.

                    (d) TERMINATION BY GENESEE WITHOUT CAUSE. If Genesee
terminates the Executive's employment other than for Cause, upon Death or
Permanent Disability, then all Options shall immediately vest and Genesee shall
pay the Executive a lump sum payment equal to the annual base salary amount in
effect on the date of termination less any disability payments he receives under
the Genesee disability policy.

                    (e) TERMINATION BY GENESEE UPON SALE OF THE COMPANY. If
Genesee terminates the Executive's employment as a result of the Sale of Genesee
or of Ontario Foods, Inc., then all Options shall immediately vest and the
Company shall pay the Executive the Termination Benefits and a lump sum payment
equal to the annual Base Salary amount in effect on the date that the Sale of
the Company has been completed.

                    (f) VOLUNTARY TERMINATION BY THE EXECUTIVE. If the
Executive's employment with Genesee is terminated by his Voluntary Termination,
then Genesee shall pay the Executive the Termination Benefits.

                    (g) PAYMENT OF TERMINATION BENEFITS AND OTHER AMOUNTS. All
Termination Benefits and lump sum payments shall be due and payable within
forty-five (45) days after the Date of Termination. Upon making such payments,
Genesee shall have no further liability hereunder, other than for the
installment payments pursuant to Sections 7(b) and (d).

                 8. RESTRICTIVE COVENANTS.

                    (a) CERTAIN ACTIVITIES DURING EMPLOYMENT. Except with the
prior written consent of the MCC and the President, the Executive will not
during the Term undertake or engage in any other employment, occupation or
business enterprise other than one in which he is an inactive investor. This
provision shall not be deemed to preclude (i) the Executive from serving on the
Board of Directors of a reasonable number of other corporations upon the advance
notice to the President, or (ii) membership in professional societies or trade
associations or lecturing or the acceptance of honorary positions, in all cases,
that are incidental to his employment by Genesee and which are not adverse or
antagonistic to Genesee, its business or prospects, financial or otherwise. The
Executive will also not acquire, assume or participate in, directly or
indirectly, any position, investment or interest adverse or antagonistic to
Genesee, its business or prospects, financial or otherwise, or take any action
towards any of the foregoing. Further, during the Term, except on behalf of
Genesee or its subsidiaries, the Executive will not, directly or indirectly,
whether as an officer, director, Executive, stockholder, partner, proprietor,
associate, representative or otherwise, become or be interested in any other
person, corporation, firm, partnership or other entity whatsoever which directly
competes with Genesee, in any part of the world, in any line of business engaged
in (or which Genesee has made plans to be engaged in) by Genesee; provided,
however, that anything above to the contrary notwithstanding, Executive may own,
as an inactive investor, securities of any

<PAGE>   9
                                                                  Page 92 of 141

competitor corporation, so long as his holdings in any one such corporation
shall not in the aggregate constitute more than one percent (1 %) of the voting
stock of such corporation.

                    (b) UNAUTHORIZED DISCLOSURE. During the Term and for a two
(2) year period thereafter, the Executive shall not, without the written consent
of the Board or a person authorized thereby, disclose to any person, other than
an employee of Genesee (or its subsidiaries) or a person to whom disclosure is
reasonably necessary or appropriate in connection with the performance by the
Executive of his duties as an employee of Genesee, any confidential information
obtained by him while in the employ of Genesee with respect to any of Genesee's
customers, suppliers, creditors, lenders or investment bankers or methods of
brewing, distribution or marketing; provided, however, that confidential
information shall not include any information known generally to the public
(other than as a result of unauthorized disclosure by the Executive) or any
information of a type not otherwise considered confidential by persons engaged
in the same business or a business similar to that conducted by Genesee.

                    (c) NON-SOLICITATION OF EMPLOYEES. While employed by Genesee
and for a period of two (2) years thereafter if Executive receives the payment
by Genesee provided for in paragraph 7(d) above, the Executive shall not,
directly or indirectly, for himself or for any other person, firm, corporation,
partnership, association or other entity, attempt to employ or enter into any
contractual arrangement with any employee or former employee of Genesee, unless
such employee or former employee has not been employed by Genesee for a period
in excess of six (6) months.

                    (d) BOOKS AND RECORDS. All books, records, accounts and
similar repositories of confidential information of Genesee, whether prepared by
the Executive or otherwise coming into the Executive's possession, shall be the
exclusive property of Genesee and shall be returned immediately to Genesee upon
termination of this Agreement or upon the Board's or President's request at any
time.

                    (e) INJUNCTION. It is recognized and hereby acknowledged by
Genesee and the Executive that a breach by the Executive of any of the
agreements contained in this Section 8 may cause irreparable harm or damage to
Genesee, or its subsidiaries, the monetary amount of which may be virtually
impossible to ascertain. As a result, the Executive and Genesee agree that
Genesee and any of its subsidiaries shall be entitled to an injunction issued by
any court of competent jurisdiction enjoining and restraining any and all
violations of such agreements by the Executive or his associates, affiliates,
partners or agents, and that such right to an injunction shall be cumulative and
in addition to whatever other remedies Genesee may possess.

                 9. GENERAL TERMS.

                    (a) BINDING EFFECT. This Agreement shall be binding upon and
inure to the benefit of the parties hereto, their personal representatives, and
permitted successors and assigns. A "successor" of Genesee includes any entity
which succeeds to the operations or assets of Genesee, whether by merger, asset
transfer, change of control or otherwise.

<PAGE>   10
                                                                  Page 93 of 141

                    (b) ASSIGNMENT. This Agreement may not be assigned, in whole
or in part, by any party hereto without the prior written consent of the other
party, except such consent shall not be required with respect to any "successor"
of Genesee.

                    (c) ENTIRE AGREEMENT. This Agreement contains the entire
understanding between or among the parties hereto and supersedes any prior
understanding, memoranda or other written or oral agreements between or among
any of them respecting the within subject matter. There are no representations,
agreements, arrangements or understandings, oral or written, between or among
any of the parties relating to the subject matter of this Agreement which are
not fully expressed herein.

                    (d) MODIFICATIONS; WAIVER. No modification or waiver of this
Agreement or any part hereof shall be effective unless in writing and signed by
the party or parties sought to be charged therewith. No waiver of any breach or
condition of this Agreement shall be deemed to be a waiver of any other or
subsequent breach or condition, whether of like or different nature. No waiver
of any breach or condition of this Agreement by or with respect to any party
hereto shall be deemed to be a waiver of the same breach or condition with
respect to any other party hereto. No course of dealing between or among any of
the parties hereto will be deemed effective to modify, amend or discharge any
part of their Agreement or the rights or obligations of any party hereunder.

                    (e) PARTIAL INVALIDITY. If any provision of this Agreement
shall be held invalid or unenforceable by competent authority, such provision
shall be construed so as to be limited or reduced to be enforceable to the
maximum extent compatible with the law as it shall then appear. The total
invalidity or unenforceability of any particular provision of this Agreement
shall not affect the other provisions hereof and this Agreement shall be
construed in all respects as if such invalid or unenforceable provision were
omitted.

                    (f) NOTICES. Unless otherwise provided in this Agreement,
any notice or other communication required or permitted under this Agreement
shall be in writing and shall be deemed to have been duly given (i) upon hand
delivery, or (ii) on the third day following delivery to the U.S. Postal Service
as certified or registered mail, return receipt requested and postage prepaid,
or (iii) on the first day following delivery to a nationally recognized United
States overnight courier service, fee prepaid, return receipt or other
confirmation of delivery requested. Any such notice or communication shall be
delivered or directed to a party at its address set forth above or at such other
address as may be designated by a party in a notice given to all other parties
hereto in accordance with the provisions of their paragraph.

                    (g) GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York pertaining to
contracts made and to be wholly performed within such state, without taking into
account conflicts of laws principles.

<PAGE>   11
                                                                  Page 94 of 141

                    (h) EFFECT OF TERMINATION. Unless otherwise specifically
agreed in writing, the terms of Paragraphs 7, 8 and 9 shall survive any
termination, cancellation, repudiation or rescission of this Agreement, and
under such circumstances Executive and the Company may continue to enforce such
terms as if this Agreement were otherwise in full force and effect.

                    (i) HEADINGS. The headings contained in this Agreement are
inserted for convenience only and do not constitute a part of this Agreement.

                    (j) FAIR MEANING. This Agreement shall be construed
according to its fair meaning, the language used shall be deemed the language
chosen by the parties hereto to express their mutual intent, and no presumption
or rule of strict construction will be applied against any party hereto.

                    (k) GENDER. Whenever the context may require, any pronoun
used herein shall include the corresponding masculine, feminine or neuter forms
and the singular of nouns, pronouns and verbs shall include the plural and vice
versa.

                    (I) COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, and all of said
counterparts together shall constitute but one and the same instrument.

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of February 15, 2000.

                            GENESEE CORPORATION

                            By:  /s/ Samuel T. Hubbard, Jr.
                                 ---------------------------------------------
                                   Samuel T. Hubbard, Jr.
                                        President

                            The Executive

                            /s/ Karl D. Simonson
                            --------------------------------------------------
                                  Karl D. Simonson

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