MODIFICATION AGREEMENT ----------------------

                            MODIFICATION AGREEMENT
                            ----------------------

     MODIFICATION AGREEMENT made this 5th day of February, 1996, by and between
MEDICAL ACTION INDUSTRIES INC., a Delaware corporation (hereinafter the
"Company") and XXXX X. XXXXXXXXX (hereinafter the "Employee").

                             W I T N E S S E T H:

     WHEREAS, the Company and Employee entered into an Employment Agreement
dated February 1, 1993 (hereinafter the "Employment Agreement"); and

     WHEREAS, the Company and Employee desire to amend said Employment
Agreement.

     NOW, THEREFORE, the parties hereto agree as follows:

     1.   Paragraph "3" of the Employment Agreement is hereby deleted and in its
place and stead shall be the following:

          "3.  TERM.  Subject to earlier termination on the terms and conditions
hereinafter provided, the term of the Agreement shall be comprised of a period
commencing on the date hereof and ending March 31, 1999."

     2.   Paragraph "5(i)" of the Employment Agreement is hereby deleted and in
its place and stead shall be the following:

          "(i)  The Company shall pay to Employee a salary at the rate of
$165,000 per annum, payable in weekly installments, or in such other manner as
shall be agreeable to the Company and Employee. 

                                  EXHIBIT 10



          "(i)  The Company shall pay to Employee a salary at the rate of
$165,000 per annum, payable in weekly installments, or in such other manner as
shall be agreeable to the Company and Employee. 

     3.   Paragraph "6(c)" of the Employment Agreement is hereby deleted and in
its place and stead shall be the following: 

          "(c) It is contemplated that during the period of employment, Employee
may be required to incur out-of-pocket expenses in connection with the
performance of his services hereunder, including expenses incurred for travel
and business entertainment.  Accordingly, the Company shall pay, or reimburse
Employee for, all out-of-pocket expenses reasonably incurred by Employee in the
performance of his duties hereunder in accordance with the usual procedures of
the Company.  Notwithstanding the foregoing, in recognition that Employee will
be required during the term of this Agreement to do a considerable amount of
local driving in connection with his services hereunder, the Company shall
provide Employee with an automobile or allowance not to exceed $1,100 per
month." 


     4.   The aforesaid Employment Agreement in all other respects is hereby
ratified and confirmed. 

                                       2




     IN WITNESS WHEREOF, the undersigned have executed this Modification
Agreement as of the day and year first above written.


                              MEDICAL ACTION INDUSTRIES INC.



                              By: /s/ Xxxxxxx X. Satin              
                                  --------------------------------
                                  Xxxxxxx X. Satin, Vice President


                                  /s/ Xxxx X. Xxxxxxxxx                
                                  --------------------------------
                                  Xxxx X. Xxxxxxxxx, Employee


                                       3