<PAGE>

                                  Exhibit 10.10
                                  -------------

Employment Agreement between the Registrant and Neil A. Frederick dated October
16, 2000.

<PAGE>

                                                                   EXHIBIT 10.10

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

         AGREEMENT, dated as of this 16th day of October, 2000, by and between
BUSH INDUSTRIES, INC., a Delaware corporation having its principal place of
business at One Mason Drive, Jamestown, New York 14702 (the "Company"), and Neil
Alan Frederick, residing at 12 Westbury Court WE, Jamestown, New York, 14701
(the "Executive").

                                   WITNESSETH:

         WHEREAS, the Company considers the maintenance of a sound and vital
management to be essential to protecting and enhancing the best interests of the
Company and its stockholders;

         WHEREAS, the Executive is currently employed by the Company in an
executive capacity and has developed an intimate and thorough knowledge of
certain aspects of the Company's business methods and operations;

         WHEREAS, the retention of the Executive's services for and on behalf of
the Company is materially important to the preservation and enhancement of the
value of the Company's business; and

         WHEREAS, the Company is desirous of continuing to employ the Executive
and the Executive is willing to continue to serve in the employ of the Company
in accordance with the terms and conditions hereinafter stated.

         NOW, THEREFORE, in consideration of the mutual premises set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Executive
hereby agree as follows:

<PAGE>

     1.  Employment. The Company agrees to employ the Executive, and the
         ----------
Executive agrees to remain in the employ of the Company during the Term, as
hereunder defined, of this Agreement, and in accordance with the terms and
conditions set forth below.

     2.  Term of Agreement. The term (the "Term") of this Agreement shall
         -----------------
commence as of October 16, 2000, and shall terminate one day prior to the third
anniversary of such date, unless sooner terminated in accordance with the terms
and conditions hereinafter set forth or unless the Term is automatically
extended as provided below. Upon the termination of the then current Term of
this Agreement, the Term shall automatically be extended for an additional
one-year period, unless the Company provides the Executive with written notice
to the contrary at least sixty (60) days prior to such date that the Term would
otherwise expire. In the event the Company provides such written notice of
non-renewal to the Executive at least sixty (60) days prior to such date that
the Term would otherwise expire, the Term hereof shall not be renewed, but the
then current Term shall remain in effect until such date that the Term would
otherwise have expired.

     3.  Position and Responsibilities. During the period of employment, the
         -----------------------------
Executive agrees to serve the Company and the Company agrees to employ the
Executive in an executive capacity, with the title set forth on Exhibit A,
attached hereto and incorporated herein by reference.

     4.  Compensation. For all services rendered by the Executive to or for the
         ------------
Company and its affiliates in all capacities during the Term, and for the
undertakings as to Confidential Information and Competition set forth in
Sections 7 and 8 below, the Executive shall be entitled to a base salary,
participation in the Company's profit sharing or executive incentive plan as in
effect as of the date hereof, participation in all Company health, welfare,
pension and other

                                       2

<PAGE>

employee benefit and fringe benefit plans (including insurance plans and
vacation plans or policies) in which generally all other executives of the
Company participate during the period of employment, subject in all events to
any changes to the terms and conditions of such plans as in effect from time to
time, and participation in other special allowance and bonus arrangements,
generally made available to other executives of the Company, all of which are
more specifically described and set forth on Exhibit B, attached hereto and
incorporated herein by reference. In addition, and notwithstanding anything
contained herein to the contrary, the Executive shall be entitled to such
increases in compensation, as determined in accordance with and as set forth on
Exhibit B.

     5.  Termination of Employment. Notwithstanding the provisions of Section 2
         -------------------------
hereto, the Executive's employment hereunder may be terminated prior to the
expiration of then current Term, as follows:

         (a)      Termination by the Company for Good Cause or by the Executive.
                  -------------------------------------------------------------
                  (i)  The Company may terminate the Executive's employment with
         the Company for good cause ("Good Cause"), as defined below, or the
         Employee may elect to terminate his employment with the Company for any
         reason upon sixty (60) days' prior written notice by the Executive to
         the Company.

                  (ii) For purposes of this Agreement, Good Cause shall mean (i)
         the substandard performance by the Employee of his duties hereunder
         (hereinafter "Termination for Substandard Performance"), (ii) the
         willful and intentional failure by the Employee to substantially
         perform his duties with the Company, provided no act, or failure to
         act, on the Executive's part shall be considered "willful" or
         "intentional" unless done, or omitted to be done, by the Executive in

                                       3

<PAGE>

         bad faith and without reasonable belief that his action or omission to
         act was in the best interest of the Company (hereinafter "Termination
         for Willful and Intentional Failure"), or (iii) the commitment by the
         Executive of an act or acts of dishonesty resulting or intended to
         result, directly or indirectly, in personal gain or personal enrichment
         at the expense of the Company, its affiliates, or its stockholders
         (hereinafter "Termination for Dishonesty").

                  (iii) If the Executive's employment by the Company is so
         terminated by the Company for Good Cause or is terminated by the
         Executive, the Executive shall not be entitled to receive any
         compensation or benefits under this Agreement, accruing after the date
         of such termination, except as otherwise provided herein, although the
         Executive shall continue to be bound by Sections 7 and 8 hereto.
         Notwithstanding anything contained herein to the contrary, prior to the
         termination of the Executive's employment hereunder for substandard
         performance, the Company must give the Executive at least one hundred
         twenty (120) days' notice in writing in order to permit the Executive
         to correct and cure any such substandard performance. Such notice must
         specify the time period, subject to a minimum of one hundred twenty
         (120) days during which the Executive must cure such performance, and
         must specify the nature of such substandard performance. In addition,
         such notice must also specify the minimum performance criteria with
         respect to the Executive that the Company views as acceptable. In the
         event the Executive does not so cure such substandard performance
         during the aforesaid cure period, the Company may terminate the
         Executive upon the expiration of such cure period. Notwithstanding
         anything

                                       4

<PAGE>

         contained herein to the contrary, in the event of Termination for
         Substandard Performance, the Company shall pay the Executive a
         severance payment equal to the compensation, including bonuses
         pro-rated for the periods so employed, that would have been payable to
         the Executive under this Agreement during the next succeeding three (3)
         months subsequent to the effective date of any such termination, as if
         such termination had not occurred. Such severance compensation shall be
         paid in such installments as Executive was paid by Company immediately
         prior to such termination.

         (b)      Termination due to a Change in Control/Constructive
                  ----------------------------------------------------
                  Termination.
                  ------------
                  (i)  If during the Term hereof, there is a Change in Control
         of the Company, as defined below, and the Executive's employment with
         the Company is so terminated following such Change in Control, or the
         Executive's employment with the Company is terminated by Executive due
         to a Constructive Termination, as defined below, the Company shall pay
         the Executive, as a severance payment, for the next succeeding twelve
         (12) month period the compensation and benefits, including bonuses,
         that would have been payable to the Executive under this Agreement for
         such twelve (12) month period if such termination of employment had not
         occurred.

                  (ii) For purposes of this Agreement, "Constructive
         Termination" shall mean a termination of this Agreement by the
         Executive under any of the following circumstances:

                       (1)The Company is in material breach of any of its
                  obligations under this Agreement, and the situation is not
                  remedied within thirty (30)

                                       5

<PAGE>

         days after the Company receives written notice from the Executive of
         the situation; or

                  (2)  During the three (3) year period commencing after a
         Change in Control of the Company (as defined below), the Executive
         determines in good faith that as a result of such Change in Control,
         there is a substantial adverse alteration in the nature or status of
         the Executive's duties or responsibilities from those in effect
         immediately prior to the Change in Control of the Company, including,
         but not limited to, any change in location at which the Executive is
         required to devote substantially all of his time in the performance of
         his duties hereunder, and provided that such change in location is in
         excess of fifty (50) miles from where the Executive performed
         substantially all of his duties immediately prior to such Change in
         Control, and the situation is not remedied within thirty (30) days
         after the Company receives written notice from the Executive of such
         determination; or

                  (3)  During the three (3) year period commencing after a
         Change in Control of the Company, the Company so notifies the Executive
         of the Company's intention not to renew this Agreement, as provided for
         in Section 2 hereto.


         (iii)    For purposes of this Agreement, "Change in Control" of the
Company shall mean an event which shall be deemed to have occurred if:

                  (1)  any "person" as such term is used in Section 13(d) and
         14(d) of the Securities Exchange Act of 1934 (the "Exchange Act")
         (other

                                       6

<PAGE>


                   than Paul S. Bush, the Company, any trustee or other
                   fiduciary holding securities under any employee benefit plan
                   of the Company, or any Company owned, directly or indirectly,
                   by the stockholders of the Company in substantially the same
                   proportions as their ownership of stock of the Company), is
                   or becomes the "beneficial owner" (as defined in Rule 13d-3
                   under the Exchange Act), directly or indirectly, of
                   securities of the Company representing 30% or more of the
                   combined voting power of the Company's then outstanding
                   securities;

                   (2)     during any period of two (2) consecutive years,
                   individuals who at the beginning of such period constitute
                   the Board of Directors of the Company, and any new director
                   (other than a director designated by a person who has entered
                   into an agreement with the Company to effect a transaction
                   described in clause (1), (3) or (4) of this Sub-Section
                   (iii)), whose election by the Board or nomination for
                   election by the Company's stockholders was approved by a vote
                   of at least two-thirds (2/3) of the directors then still in
                   office who either were directors at the beginning of the
                   period or whose election or nomination for election was
                   previously so approved, cease for any reason to constitute at
                   least a majority thereof;

                   (3)     the stockholders of the Company approve a merger or
                   consolidation of the Company with any other corporation,
                   other than a merger or consolidation which would result in
                   the voting securities of the Company outstanding immediately
                   prior thereto continuing to represent (either by remaining
                   outstanding or by being converted into voting

                                       7

<PAGE>

                  securities of the surviving entity) more than 80% of the
                  combined voting power of the voting securities of the Company
                  or such surviving entity outstanding immediately after such
                  merger or consolidation; provided, however, that a merger or
                  consolidation effected to implement a recapitalization of the
                  Company (or similar transaction) in which no person (as
                  hereinabove defined) acquires more than 25% of the combined
                  voting power of the Company's then outstanding securities
                  shall not constitute a Change in Control of the Company; or

                  (4)     the stockholders of the Company approve a plan of
                  complete liquidation of the Company or an agreement for the
                  sale or disposition by the Company of all or substantially
                  all of the Company's assets.

         (c)      Disability of Executive. In the event of the Executive's
                  -----------------------
     disability (as hereinafter defined), during his employment under this
     Agreement, the employment of the Executive and this Agreement may be
     terminated by the Company nine (9) months after the commencement of such
     disability; provided, however, that upon any such termination, the
     Executive shall be entitled to payment of severance for a twelve (12) month
     period of time, which such severance payments shall be calculated in
     accordance with Section 5(b)(i) above, reduced by any benefits he may
     receive under any short term disability and long term disability plans
     sponsored by the Company covering its executives at the time that the
     Executive's disability commences. During the period of the Executive's
     disability (prior to termination of employment), the Executive shall
     continue to receive the compensation provided for in this Agreement,
     reduced by any

                                       8

<PAGE>

     benefits he may receive under any short term disability and long term
     disability plans sponsored by the Company covering its executives at the
     time that the Executive's disability commences. If before the end of nine
     (9) months from the first day of disability, the Executive's disability
     shall have ceased, and he shall have resumed the full-time performance of
     his duties under this Agreement, the Executive shall continue to receive
     the compensation provided for in this Agreement. Provided, however, that
     unless the Executive shall satisfactorily perform his duties on a full-time
     basis under this Agreement for a continuous period of at least sixty (60)
     calendar days following a period of disability before the Executive again
     becomes disabled, he shall not be entitled to begin a new nine (9) month
     period for such subsequent disability, and the subsequent period of
     disability shall be added to the first in determining whether the Executive
     has been disabled for nine months in connection with this Section. During
     the period of his disability, the Executive shall be entitled to benefits
     in accordance with and subject to the terms and provisions of the Company's
     short-term disability income plan and its long-term disability plan for its
     executives, if any, as in effect at the time of the commencement of
     disability. For purposes of this Agreement, "disability" shall have the
     same meaning as given that term under the Company's long term disability
     plan for its executives, as in effect from time to time.

         (d)      Continuation of Insurance Upon Termination.
                  ------------------------------------------

                  (i)      In the event that the employment of the Executive
         hereunder is terminated and provided further that in such an event,
         the Executive is entitled to severance payments hereunder, then in
         such an event, the Executive shall be entitled to continuation of
         coverage under the benefit plans outlined in Exhibit B,

                                       9

<PAGE>

          or such similar plans as the Company may provide for its executives
          from time to time thereafter, but in no event shall such coverages be
          less favorable than outlined in Exhibit B. Such continuation of
          coverage shall continue for the duration of such severance payments,
          and in the case of termination due to a Change in Control or
          Constructive Termination shall continue for a period of twenty-four
          (24) months from the date of termination. The Company shall be
          responsible for paying all of the costs of such coverages that it
          would have paid if the Executive was still in the employ of the
          Company. The group health coverage shall cover the Executive and his
          spouse and dependents. The life insurance policy covering the life of
          the Executive shall name as beneficiary the person or persons
          designated from time to time by the Executive.

                  (ii)     Upon the termination of the employment of the
          Executive pursuant to which the Executive is not entitled to any
          severance payments, and upon termination of any coverages set forth in
          Subsection (i) above, the Executive shall be entitled only to
          continuation of coverage under the group health plans then in effect
          covering the Executive and only to the extent required by the
          provisions of applicable law and regulation. As permitted under
          applicable law and regulation, the Executive shall be responsible for
          paying the full cost of such continuation in coverage.

     (6)  Confidential Information.  Except as reasonably required in the course
          ------------------------
of his employment, the Executive agrees not to disclose to others or permit such
disclosure, or make use of or permit the use of for his own benefit or the
benefit of others, any confidential information, without the prior written
consent of the company. Confidential information as used

                                       10

<PAGE>

in this Agreement includes any information, whether of a financial, technical or
marketing nature, that pertains to the present or prospective business of the
Company or any affiliate of the Company, or of any present or prospective
customer, consultant or supplier of the Company or of any other party with which
the Company does business and may be contractually or otherwise obligated to
maintain such information secret, and becomes known to Executive or is generated
by the Executive in the course of his employment with the Company, including,
but not limited to, any information relating to manufacturing equipment,
formulae, formulations, processes, plans, inventions, market information,
designs, materials, data, product information, know-how, licensees,
sublicensees, experience, names, buying habits, or practices of any customers,
marketing methods and related data, the names of any vendors or suppliers, costs
of materials, prices, manufacturing and sales costs or lists or other written
records, intended trade names, trade secrets, intended trademarks, methods of
operation, sales statistics and other information pertaining to the Company, its
technology or its customers, and which is confidential and in the nature of
trade secrets. Confidential information, however, shall not include information
that is, or through no fault of the Executive becomes, generally and overtly
known in the industry in which the Company competes. The Executive also agrees
that upon leaving the Company's employ he will not take with him, without the
prior written consent of the Company, and he will surrender to the Company upon
leaving the Company's employ or at such sooner date, if requested by the
Company, any records, lists, drawings, blueprints, specifications or other
documents or property of the Company or any affiliate thereof, together with any
copy or reproduction thereof, mechanical or otherwise, which is of a
confidential nature relating to the Company or any affiliate of the Company, or,
without limitation, relating to its or their methods of production, technology,
licensing, distribution, suppliers, customers, client relationships,

                                       11

<PAGE>

marketing strategies or any description of any formulae or secret processes, or
which was obtained by him or entrusted to him during the course of his
employment with the Company or which otherwise contains confidential
information.

         7.       Competition, Detrimental Conduct.
                  --------------------------------

                  (a)      The Executive covenants and agrees that during the
     six (6) months following the termination of his employment with the Company
     for Good Cause, he will not engage in "Competition" with the Company. For
     purposes of this Section 7, "Competition" shall mean:

                           (i)     the Executive either as a principal, agent,
                  employer, partner, director, stockholder or otherwise,
                  engaging in any business in direct competition with the
                  principal business of the Company or any affiliate of the
                  Company; provided, however, that in no event shall ownership
                  of less than 5% of the outstanding capital stock entitled to
                  vote for the election of directors of a corporation with a
                  class of equity securities held of record by more than 500
                  persons, standing alone, be deemed Competition with the
                  Company within the meaning of this Section 7(a).

                           (ii)    soliciting any person who is a supplier or
                  customer of the businesses conducted by the Company, or any
                  business in which the Executive has been engaged on behalf of
                  the Company, or any affiliate of the Company, at any time
                  during the period of employment on behalf of a business
                  described in clause (i) of this Section 7(a), or

                                       12

<PAGE>

                  (iii)    inducing or attempting to persuade any Executive of
         the Company or any of its affiliates to terminate his employment in
         order to enter into employment with a business described in clause (i)
         of this Section 7(a).

         (b)      The Executive recognizes and agrees that the restrictions on
     his activities contained in this Section 7 are required for the reasonable
     protection of the Company and its investments.

     8.  Injunctive Relief. The Executive recognizes and agrees that, by reason
         -----------------
of his knowledge, experience, skill and ability, his services are extraordinary
and unique, that the breach or attempted breach of the restrictive covenants set
forth in Section 6 or Section 7 above will result in immediate and irreparable
injury to the Company for which the Company will not have an adequate remedy at
law, and that the Company shall be entitled to a decree of specific performance
of those covenants and to a temporary and permanent injunction enjoining the
breach thereof. Such decree or order, to the extent appropriate, shall
specifically enforce the full performance of any such covenant by the Executive,
and the Executive hereby consents to the jurisdiction of any such court of
competent jurisdiction in the State of New York or any State of Executive's
residence, and authorizes the entry on such Executive's behalf of any required
appearance for such purpose. Enforcement of any remedy under this Section shall
not reduce or adversely affect any other remedy which may be available to the
Company in law or in equity, and nothing herein shall prevent the Company from
seeking injunctive or other relief hereunder. The Company may seek any and all
other remedies to which the Company may be entitled, including, without
limitation, monetary damages, without posting bond or furnishing security of any
kind.

                                       13

<PAGE>

     9.  Continued Payments. The Executive agrees that the Company shall not be
         ------------------
obligated to make any further payments (including any severance payments) or
provide any benefits provided for herein, if the Executive shall, during the
period in which such payments are being made, engage in Competition with the
Company as defined in Section 7(a) above, or breach his obligations under
Section 6. The provisions of Section 8 and 9 are in addition to and not by way
of limitation of any other rights or remedies available to the Company.

     10. Severability.
         ------------

         (a)      In the event that any provision of this Agreement shall be
     determined to be invalid or unenforceable for any reason, in whole or in
     part, the remaining provisions of this Agreement not so invalid or
     unenforceable shall be unaffected thereby and shall remain in full force
     and effect to the fullest extent permitted by law.

         (b)      Any provision of this Agreement which may be invalid or
     unenforceable in any jurisdiction shall be limited by construction thereof,
     to the end that such provision shall be valid and enforceable in such
     jurisdiction; and

         (c)      Any provision of this Agreement which may for any reason be
     invalid or unenforceable in any jurisdiction shall remain in effect and be
     enforceable in any jurisdiction in which such provision shall be valid and
     enforceable.

     11. Miscellaneous.
         -------------
         (a)      Indulgences, Etc. Neither the failure nor any delay on the
                  ----------------
part of either party to exercise any right, remedy, power or privilege under
this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any other right, remedy, power or privilege,
nor shall any waiver of any right, remedy, power or

                                       14

<PAGE>

     privilege with respect to any occurrence be construed as a waiver of such
     right, remedy, power or privilege with respect to any other occurrence. No
     waiver shall be effective unless it is in writing and is signed by the
     party asserted to have granted such waiver.

         (b)      Controlling Law. This Agreement and all questions relating to
                  ---------------
     its validity, interpretation, performance and enforcement (including,
     without limitation, provisions concerning limitations of actions), shall be
     governed by and construed in accordance with the laws of the State of New
     York, without application to the principles of conflict of laws.

         (c)      Notices. All notices, requests, demands and other
                  -------
     communications required or permitted under this Agreement shall be in
     writing and shall be deemed to have been duly given, made and received only
     when personally delivered, one day following the day when deposited with an
     overnight courier service, priority overnight service such as Federal
     Express, for delivery to the intended addressee or three days following the
     day when deposited in the United States mails, first class postage prepaid,
     addressed as set forth below:

                  If to the Company:
                  Bush Industries, Inc.
                  One Mason Drive
                  Jamestown, New York  14702
                  Attn:  Executive Vice President
                  If to Executive:
                  To the address first set forth above.

         Any person may alter the address to which communications or copies are
     to be sent by giving notice of such change of address in conformity with
     the provisions of this Section for the giving of notice.

                                       15

<PAGE>

         (d)      Binding Nature of Agreement; No Assignment. This Agreement
                  ------------------------------------------
     shall be binding upon and inure to the benefit of the parties hereto and
     their respective heirs, personal representatives, successors and assigns,
     except that no party may assign or transfer its rights under this Agreement
     without the prior written consent of the other parties hereto. No right of
     the Executive to any payments under this Agreement shall be subject to
     anticipation, alienation, sale, assignment, encumbrance, pledge, charge or
     hypothecation or to execution, attachment, levy or similar process, or
     assignment by operation of law.

         (e)      Section Headings.  The Section headings in this Agreement are
                  ----------------
     for convenience only; they form no part of this Agreement and shall not
     affect its interpretation.

         (f)      Gender, Etc. Words used herein, regardless of the number and
                  -----------
     gender specifically used, shall be deemed and construed to include any
     other number, singular or plural, and any other gender, masculine, feminine
     or neuter, as the context indicates is appropriate.

         (g)      Number of Days. In computing the number of days for purposes
                  --------------
     of this Agreement, all days shall be counted, including Saturdays, Sundays
     and holidays; provided, however, that if the final day of any time period
                   --------  -------
     falls on a Saturday, Sunday or holiday on which federal banks are or may
     elect to be closed, then the final day shall be deemed to be the next day
     which is not a Saturday, Sunday or such holiday.

         (h)      No Third-Party Beneficiaries. This Agreement shall not confer
                  ----------------------------
     any rights or remedies upon any person other than the parties and their
     respective successors and permitted assigns.

                                       16

<PAGE>

         (i)      Entire Agreement; Amendments. This Agreement (including the
                  ----------------------------
     Exhibits referred to herein) constitutes the entire agreement among the
     parties and supersedes any prior understandings, agreements, or
     representations by or among the parties, written or oral, that may have
     related in any way to the subject matter hereof. This Agreement may not be
     amended, supplemented or modified in whole or in part except by an
     instrument in writing signed by the party or parties against whom
     enforcement of any such amendment, supplement or modification is sought.

         (j)      Construction.  The language used in this Agreement will be
                  ------------
     deemed to be the language chosen by the parties to express their mutual
     intent, and thereof strict construction shall be applied against any party.
     Any reference to any federal, state, local or foreign statute or law shall
     be deemed also to refer to the rules and regulations promulgated
     thereunder, unless the context requires otherwise. The parties intend that
     each representation, warranty, and covenant contained herein shall have
     independent significance. If any party has breached any representation,
     warranty, or covenant contained herein in any respect, the fact that there
     exists another representation, warranty or covenant relating to the same
     subject matter (regardless of the relative levels of specificity) which the
     party has not breached shall not detract from or mitigate the fact that the
     party is in breach of the first representation, warranty or covenant. This
     Agreement shall be neither construed against nor in favor of any of the
     parties hereto, but rather in accordance with the fair meaning of its
     content.

         (k)      Arbitration.  Notwithstanding anything to the contrary in this
                  -----------
     Agreement, any controversies or claims arising out of or relating to this
     Agreement, or the breach thereof, shall be settled by binding arbitration
     in Jamestown, New York, in accordance

                                       17

<PAGE>

     with the rules and procedures of the American Arbitration Association, and
     judgment upon the award rendered by the arbitrator may be entered in any
     court having jurisdiction thereof. The award rendered by the arbitrator
     shall be final and binding upon the parties, not subject to appeal. The
     prevailing party shall be entitled to recover as part of the award all
     reasonable attorneys' fees and related costs, including all fees and
     expenses of the arbitration. The parties hereto further agree to use their
     good faith and best efforts to commence arbitration within thirty (30) days
     after the claim, dispute or other matters in question have arisen.
     Notwithstanding anything contained herein to the contrary, notice of
     non-renewal of the then current term in accordance with Section 2 hereto is
     non-arbitrable. In the event arbitration is initiated hereunder with
     respect to termination for Good Cause, the parties hereto agree that
     Executive shall not be entitled to reinstatement and that the maximum award
     that can be awarded Executive hereunder, based upon a determination by the
     arbitrator that the Executive was not terminated for Good Cause shall be
     severance compensation equal to twelve (12) months. Such severance
     compensation shall be based on the monthly portion of the Executive's
     annual base salary as of the date of termination, including bonuses.


         (l)      Counterparts.  This Agreement may be executed in one or more
                  ------------
     counterparts, each of which will be deemed an original and all of which
     together will constitute one and the same instrument.


         (m)      Duty to Mitigate.  In the event the Executive is entitled to
                  ----------------
     any severance payments hereunder, the Executive shall not have a duty to
     mitigate the Corporation's obligation to pay the same hereunder. The
     Executive shall not be required to mitigate the amount of any payments
     provided for under this Agreement by seeking other

                                       18

<PAGE>

     employment or otherwise, nor shall the amount of any payments hereunder be
     reduced by any compensation earned by the Executive as the result of
     employment by another employer after termination of the Executive.

         (n)      Survival. All covenants, agreements, representations and
                  --------
     warranties made herein or otherwise made in writing by any party pursuant
     hereto shall survive the execution and delivery of this Agreement and the
     consummation of the transactions contemplated hereby.

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

                                         THE COMPANY:

                                         Bush Industries, Inc.

                                         By:   /s/
                                            ---------------------------------
                                         Name:
                                              -------------------------------
                                         Title:
                                               ------------------------------


                                         The Executive:

                                            /s/
                                         ------------------------------------

                                       19