# PSS World Medical,
Inc. 4345 Southpoint Boulevard Jacksonville, Florida 32216

October 20, 2003

Mr. Tony Oglesby1764 Sams
Drive Dandridge, Tennessee 37725

Dear Tony:

This
letter will memorialize our agreement with respect to the termination of your employment.
Please acknowledge your agreement by signing in the space indicated at the end of this
letter.

1.       
          Termination of Employment. Effective as of October 23, 2003 (the
          Date of Termination), you have tendered, and the Company has
          accepted, your resignation of employment with PSS World Medical, Inc. (the
          Company) or any of its affiliates. You and the Company acknowledge
          that this is a voluntary termination by you without Good Reason, as provided in
          Section 7(c) of your Employment Agreement with the Company, dated October 1,
          2002 (the Employment Agreement).

2.       
          No Change of Control. You and the Company acknowledge that, as of the
          Date of Termination, there has not occurred a Change of Control of the Company,
          as defined in the Employment Agreement. You and we further acknowledge that your
          employment is not being terminated in contemplation of or otherwise in
          connection with a Change of Control.

3.       
          No Severance Benefits. Pursuant to Section 8(e) of the Employment
          Agreement, since you voluntarily terminated your employment without Good Reason,
          you are not entitled to severance benefits under the Employment Agreement, but
          you are entitled to the following accrued benefits:

| | (a)       
               the Company will pay to you in a lump sum in cash within 30 days after the Date
               of Termination the sum of (1) your base salary through the Date of Termination
               to the extent not theretofore paid, and (2) any accrued vacation pay to the
               extent not theretofore paid; and
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| | (b)       
               to the extent not theretofore paid or provided, the Company will timely pay or
               provide to you any other amounts or benefits required to be paid or provided or
               which you are eligible to receive under any plan, program, policy or practice or
               contract or agreement of the Company and its affiliated companies.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

You
are reminded of your right to purchase continued health insurance coverage for a period of
up to eighteen (18) months following the Date of Termination pursuant to the terms of
applicable law.

4.       
          Restrictions on Your Conduct; Additional Payment for Extension.

| | (a)                        Pursuant
to Section 13(g)(iv) of the Employment Agreement, the restrictive           covenants set
forth and defined in Section 13 of the Employment Agreement (the           Restrictive
Covenants) will by their terms remain in effect for a           period of eighteen
(18) months after the Date of Termination, subject to a           termination of the
Restrictive Covenants (except with respect to Trade Secrets)           by their terms,
effective upon a Change of Control occurring during such           18-month period.
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| | (b)                        In
consideration exclusively for the following additional payments and benefits,
          which you acknowledge are reasonable and adequate for the purpose, you hereby
          agree that the Restrictive Covenants set forth and defined in Section 13 of the
          Employment Agreement will extend for an additional eighteen (18) months after
          the Date of Termination (i.e., when added to the original 18-month restricted
          period, a total restricted period of thirty-six (36) months after the Date of
          Termination), and that all of the provisions of Section 13 of the Employment
          Agreement, including, without limitation, a termination of the Restrictive
          Covenants (except with respect to Trade Secrets) effective upon a Change of
          Control occurring during such additional 18-month period, shall apply with
          respect to such extended covenants except that the term Restricted
          Period as used therein shall mean the term of your employment and a
period           extending until thirty-six (36) months from the Date of Termination:
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| | (i)                             the
Company will pay to you in a lump sum in cash within 30 days after the Date
               of Termination the sum of $315,000; and
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| | (ii)                             the
Company will pay to you the product of (x) your annual bonus that would have
               been payable with respect to the fiscal year of the Company ending in
March 2004                (determined at the end of such year based on actual performance
results through                the end of such year) and (y) a fraction, the numerator of
which is the number                of days in the current fiscal year through the Date of
Termination, and the                denominator of which is 365; and
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| | (iii)                             all
of your options to acquire stock of the Company that are outstanding as of
               the Date of Termination will continue to vest in accordance with their
normal                vesting schedule (as if you had not terminated employment) through
December 31,                2004 and such options shall remain exercisable until the end
of business on                December 31, 2004, but not beyond the original expiration
date of any applicable                option. Any options you hold that have not vested
by December 31, 2004 will                expire on December 31, 2004.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       
               You acknowledge and agree that the payments and benefits set forth in Section
               4(b) above are directly and exclusively in consideration for the extension of
               the Restrictive Covenants for an additional 18-month period and not for any
               other purpose, and that your right to retain such payments and benefits is
               expressly conditioned on your continued compliance with the Restrictive
               Covenants for the full 36-month period after the Date of Termination.
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5.       
          Certain Additional Covenants.

| | (a)              Agreement
Not to Disparage. You and the Company agree that neither shall           say, write
or communicate in any manner to any person or entity in the medical           community
or the medical distribution industry anything substantially derogatory           about
the other, regardless of the truth or falsity of the information;           provided,
that nothing contained herein is intended to or shall limit your or           the Companys
ability to comply with applicable laws, rules or regulations,           to obtain any
benefits under any bond and/or insurance policy, or to commence,           institute,
prosecute or defend any lawsuit, action, claim or proceeding before           or in any
court, regulatory, governmental, arbitral or other authority. In this
          connection, you specifically agree that, for purposes hereof, the
          Company means and includes the Company and its officers, directors,
          employees, affiliates and representatives.
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| | (b)              Return
of Company Property. At such time as you cease to be affiliated           with the
Company in any capacity, you will deliver to the Company all property           belonging
to the Company, including, without limitation, all confidential           information of
the Company then in your possession, including soft and hard           copies thereof,
and all keys to the Company premises.
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6.       
          General Release and Forbearance.

| | (a)              Release
by Employee. In consideration of the payment to you of $10,000 by           the
Company within 30 days after the Date of Termination, you, for yourself,           your
successors, heirs, legatees, personal and legal representatives, and           assigns
(the Releasors), hereby forever release and discharge the           Company,
its officers, directors, stockholders, employees, agents, corporate           affiliates,
controlling persons, and successors, and their representatives (the           Releasees)
from any claims, demands, causes of action, suits,           contracts or liabilities
whatsoever, in law or in equity, whether known or           unknown or suspected to exist
by you, which you have had or may now have against           the Company or any of such
related parties arising from or connected with your           employment with the Company
or the termination of that employment, but           specifically excluding (i) whatever
rights the Releasors might have to           indemnification or payment of expenses
arising under the Companys charter           or bylaws or any other source, and
(ii) the Companys obligations under           this Agreement (the Release).
Such claims or causes of action shall           include, but not be limited to, any
claims, demands, suits or causes of action           (i) in connection with any privacy
right, civil rights claim, claim for           emotional and mental distress; your
employment with the Company; or the           termination of that employment; or (ii)
pursuant to any federal, state, or local           employment laws, regulations,
executive orders, or other requirements, including           without limitation those
that may relate to sex, race or other forms of           discrimination, including,
without limitation, Title VII of the Civil Rights Act           of 1964, The Americans
With Disabilities Act, and the Age Discrimination in           Employment Act Title VII
of the Civil Rights Act of 1964; provided, however,           that this Release covers
only claims that you may have under the Age           Discrimination in Employment Act as
of the effective date of this Release.           Without limiting the generality of the
foregoing, you hereby acknowledge and           covenant that you have knowingly
relinquished and forever released any and all           rights and remedies which might
otherwise be available to you, including claims           for back pay, liquidated
damages, recovery of interest, costs, punitive damages           or attorneys fees,
and any claims for employment or reemployment with the           Company.
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| | (b)              Acknowledgments.
You acknowledge that you have been advised in writing to           consult with an
attorney before signing this agreement and the Release. You           acknowledge that
you have read this Release and understand that it is a general           release of the
Company from any past or existing claim which you have against           the Company,
including any claim relating to your employment or termination of           employment.
You acknowledge that you have had twenty one (21) days from receipt           of this
Release to review it prior to signing (or have voluntarily signed this           Release
prior to the expiration of such 21-day prior review period) and have
          voluntarily decided to sign this Release. You have the right to revoke this
          Release within seven (7) days following the date of its execution by you.
          However, if you fail to execute this Release or revoke this Release within such
          seven (7) day period, no benefits will be payable to you under this agreement
          and you shall return to the Company any payments thus received prior to that
          date.
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7.       
          Tax Matters. You and we acknowledge and agree that the payments and
          benefits described herein may be taxable income, and we each covenant to comply
          with all federal and state income and employment tax requirements, including all
          reporting and withholding requirements, relating thereto.

8.       
          Prior Agreements. You and the Company agree that, except as set forth in
          Section 6(a) above with respect to any rights to indemnification or payment of
          expenses, and except as provided in Section 4 above with respect to survival and
          extension of the Restrictive Covenants, this agreement supersedes and terminates
          any and all prior employment, separation or similar agreements, oral or written,
          between you and the Company, including without limitation the Employment
          Agreement, and that the mutual benefits and obligations of each of the parties
          are solely as provided for and contained in this agreement.

9.       
          Governing Law. Except to the extent preempted by federal law, and without
          regard to conflict of laws principles, the laws of the State of Florida shall
          govern this agreement in all respects, whether as to its validity, construction,
          capacity, performance or otherwise.

Again,
to indicate your acknowledgment of our agreement as memorialized above, please sign and
date this letter and the enclosed duplicate copy in the space provided below and return
one originally executed copy to the Company.

| |                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------
| | Very truly yours,
PSS World Medical, Inc.
By: /s/ David A. Smith
      David A. Smith
      Chief Executive Officer and President

THE UNDERSIGNED HAS CAREFULLY READ
THIS RELEASE AND ACKNOWLEDGES THAT IT CONSTITUTES A GENERAL RELEASE OF ALL KNOWN AND
UNKNOWN CLAIMS AGAINST THE COMPANY UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT. THE
UNDERSIGNED ACKNOWLEDGES THAT THE UNDERSIGNED HAS HAD A FULL OPPORTUNITY TO CONSULT WITH
AN ATTORNEY OR OTHER ADVISOR OF HIS OR HER CHOOSING CONCERNING THE EXECUTION OF THIS
RELEASE AND THAT THE UNDERSIGNED IS SIGNING THIS RELEASE VOLUNTARILY AND WITH THE FULL
INTENT OF RELEASING THE COMPANY FROM ALL SUCH CLAIMS.

Acknowledged as being the true
agreement of the parties, this 20th day of October, 2003.

EMPLOYEE

/s/ Tony OglesbyTony Oglesby