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                                                                    EXHIBIT 10.4

Note:  This Form can be used for Incentive Stock Options ("ISOs") and
Non-Qualified Stock Options ("NQSO's") by use of the applicable provisions
indicated below.




                            [INCENTIVE STOCK OPTION]
                          [NON-QUALIFIED STOCK OPTION]

To:
              -------------------------------------------------------------
                   Name


              -------------------------------------------------------------
                   Address


              -------------------------------------------------------------
                   Social Security Number

Date of Grant:
              -------------------------------------------------------------


         You are hereby granted an option, effective as of the date hereof, to
purchase ____shares of common stock, no par value ("Common Stock"), of NCO
Group, Inc., a Pennsylvania corporation (the "Company") at a price of
$_____share pursuant to the Company's 2004 Equity Incentive Plan (the "Plan").
All capitalized terms that are used and not defined herein shall have the
respective meanings given to them in the Plan.

         [Note: Vesting schedule, if any, is at the discretion of the
Committee][Your option may first be exercised on and after one year from the
date of grant, but not before that time. On and after one year and prior to two
years from the date of grant, your option may be exercised for up to [ ]% of the
total number of shares subject to the option minus the number of shares
previously purchased by exercise of the option (as adjusted for any change in
the outstanding shares of the Common Stock of the Company by reason of a stock
dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the
Committee deems in its sole discretion to be similar circumstances). Each
succeeding year thereafter, your option may be exercised for up to an additional
[ ]% of the total number of shares subject to the option minus the number of
shares previously purchased by exercise of the option (as adjusted for any
change in the outstanding shares of the Common Stock of the Company by reason of
a stock dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the
Committee deems in its sole discretion to be similar circumstances). Thus, this
option is fully exercisable on and after [ ] years after the date of grant,
except if terminated earlier as provided herein. No fractional shares shall be
issued or delivered.] This option shall terminate and is not exercisable after
ten years from the date of its grant (the "Scheduled Termination Date"), except
if terminated earlier as hereafter provided.
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         In the event of a "Change in Control" (as defined in the Plan) of the
Company, your option may, from and after the date of the Change in Control (but
in no event later than the Scheduled Termination Date), and notwithstanding the
immediately preceding paragraph, be exercised for up to 100% of the total number
of shares then subject to the option minus the number of shares previously
purchased upon exercise of the option (as adjusted for stock dividends, stock
splits, combinations of shares and what the Committee deems in its sole
discretion to be similar circumstances), except as provided in the Plan.

         You may exercise your option by giving written notice to the Secretary
of the Company on forms supplied by the Company at its then principal executive
office, accompanied by payment of the option price for the total number of
shares you specify that you wish to purchase. The payment may be in any of the
following forms: (i) cash or by check (acceptable to the Company in accordance
with guidelines established for this purpose), bank draft or money order payable
to the order of the Company, (ii) unless prohibited by the Committee (A) through
the delivery of shares of Common Stock which have been outstanding for at least
six months (unless the Committee expressly approves a shorter period) and which
have a fair market value on the date of exercise at least equal to the exercise
price, or (B) by delivery of an unconditional and irrevocable undertaking by a
broker to deliver promptly to the Company sufficient funds to pay the exercise
price (including in connection with a so-called "cashless exercise" effected by
such broker), or (iii) by any combination of the permissible forms of payment.
Any assignment of stock shall be in a form and substance satisfactory to the
Secretary of the Company, including guarantees of signature(s) and payment of
all transfer taxes if the Secretary deems such guarantees necessary or
desirable.

         Your option will, to the extent not previously exercised by you,
terminate three months after the date on which your employment by the Company or
a Company subsidiary corporation is terminated (whether such termination be
voluntary or involuntary) other than by reason of permanent and total disability
as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended
(the "Code"), and the regulations thereunder ("Disability"), or death, in which
case your option will terminate one year from the date of termination of
employment due to Disability or death (but in no event later than the Scheduled
Termination Date). After the date your employment is terminated, as aforesaid,
you may exercise this option only for the number of shares which you had a right
to purchase and did not purchase on the date your employment terminated;
provided, however, that if the termination of employment was due to death or
Disability, all unexercised options at the time of such termination due to death
or Disability shall automatically become exercisable in full. If you are
employed by a Company subsidiary corporation, your employment shall be deemed to
have terminated on the date your employer ceases to be a Company subsidiary
corporation, unless you are on that date transferred to the Company or another
Company subsidiary corporation. Your employment shall not be deemed to have
terminated if you are transferred from the Company to a Company subsidiary
corporation, or vice versa, or from one Company subsidiary corporation to
another Company subsidiary corporation. In addition, in the sole discretion of
the Committee or, if you are not an executive officer of the Corporation, in the
discretion of the Chief Executive Officer of the Corporation, your employment
shall not be deemed to have terminated for the purpose of this Option if, on the
date that your employment with the Company terminates, you have a directorship,
consulting, service or other relationship with the Company that would otherwise


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permit you to receive an Award under the Plan. Such determination shall be made
by the Committee or the Chief Executive Officer, as the case may be, not later
than thirty days from the date of actual termination of employment, and you
shall have thirty days to accept such offer; [ADD IF ISO: provided, however, if
you accept such offer, this option may no longer be an incentive stock option if
not exercised within ninety days from the date of actual termination of
employment].

         If you die while employed by the Company or a Company subsidiary
corporation, your executor or administrator, as the case may be, may, at any
time within one year after the date of your death (but in no event later than
the Scheduled Termination Date), exercise the option as to all unexercised
shares then represented by the option. If your employment with the Company or a
Company parent or subsidiary corporation is terminated by reason of your
becoming disabled (within the meaning of Section 22(e)(3) of the Code and the
regulations thereunder), you or your legal guardian or custodian may at any time
within one year after the date of such termination (but in no event later than
the Scheduled Termination Date), exercise the option as to all unexercised
shares then represented by the option. Your executor, administrator, guardian or
custodian must present proof of his authority satisfactory to the Company prior
to being allowed to exercise this option.

         Notwithstanding any other provision of the Option, the Committee (or,
if you are not an executive officer of the Corporation, the Chief Executive
Officer of the Corporation) shall have the right to cancel this Option without
notice if: (a) your employment is terminated for: (i) criminal conduct; (ii)
willful misconduct or gross negligence materially detrimental to the Company; or
(iii) conduct constituting "Cause" as defined in the Plan; or (b) regardless of
whether your employment is continuing or has been terminated, you are in breach
of or violate, in a material way, any obligation to, covenant or agreement with
or policy of the Company to which you may be a party or by which you may be
bound or subject, as the case may be, including without limitation any
employment agreement, termination agreement, confidentiality agreement,
non-solicitation agreement or non-competition agreement. All determinations and
findings with respect to the cancellation of the Option shall be made by the
Compensation Committee in its sole and absolute discretion (except that, if you
are not an executive officer of the Corporation, such determinations and
findings may be made by the Chief Executive Officer of the Corporation).

         In the event of any change in the outstanding shares of the Common
Stock of the Company by reason of a stock dividend, stock split, combination of
shares, recapitalization, merger, consolidation, transfer of assets,
reorganization, conversion or what the Committee deems in its sole discretion to
be similar circumstances, the number and kind of shares and/or other property
subject to this option and the option price of such shares and/or other property
shall be appropriately adjusted in a manner to be determined in the sole
discretion of the Committee.

         This option is not transferable otherwise than by will or the laws of
descent and distribution, and is exercisable during your lifetime only by you,
including, for this purpose, your legal guardian or custodian in the event of
Disability. Until the option price has been paid in full pursuant to due
exercise of this option and the purchased shares are delivered to you, you do
not have any rights as a shareholder of the Company. The Company reserves the
right not to deliver to you the shares purchased by virtue of the exercise of
this option during any period of time in which the Company deems, in its sole


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discretion, that such delivery would violate a federal state, local or
securities exchange rule, regulation or law.

         Notwithstanding anything to the contrary contained herein, this option
is not exercisable until all the following events occur and during the following
periods of time:

                  (a) Until the Plan pursuant to which this option is granted is
approved by the shareholders of the Company in the manner prescribed by the Code
and the regulations thereunder;

                  (b) Until this option and the optioned shares are approved
and/or registered with such federal, state and local regulatory bodies or
agencies and securities exchanges as the Company may deem necessary or
desirable; or

                  (c) During any period of time in which the Company deems that
the exercisability of this option, the offer to sell the shares optioned
hereunder, or the sale thereof, may violate a federal, state, local or
securities exchange rule, regulation or law, or may cause the Company to be
legally obligated to issue or sell more shares than the Company is legally
entitled to issue or sell.

                  (d) Until you have paid or made suitable arrangements to pay
(which may include payment through the surrender of Common Stock, unless
prohibited by the Committee) (i) all federal, state and local income tax
withholding required to be withheld by the Company in connection with the option
exercise and (ii) the employee's portion or other federal, state and local
payroll and other taxes due in connection with the option exercise.

         The following two paragraphs shall be applicable if, on the date of
exercise of this option, the Common Stock to be purchased pursuant to such
exercise has not been registered under the Securities Act of 1933, as amended,
and under applicable state securities laws, and shall continue to be applicable
for so long as such registration has not occurred:

                  (a) The optionee hereby agrees, warrants and represents that
he will acquire the Common Stock to be issued hereunder for his own account for
investment purposes only, and not with a view to, or in connection with, any
resale or other distribution of any of such shares, except as hereafter
permitted. The optionee further agrees that he will not at any time make any
offer, sale, transfer, pledge or other disposition of such Common Stock to be
issued hereunder without an effective registration statement under the
Securities Act of 1933, as amended, and under any applicable state securities
laws or an opinion of counsel acceptable tot he Company to the effect that the
proposed transaction will be exempt from such registration. The optionee shall
execute such instruments, representations acknowledgements and agreements as the
Company may, in its sole discretion, deem advisable to avoid any violation of
federal state, local or securities exchange rule, regulation or law.

                  (b) The certificates for Common Stock to be issued to the
optionee hereunder shall bear the following legend:



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                  "The shares represented by this certificate have not been
         registered under the Securities Act of 1933, as amended, or under
         applicable state securities laws. The shares have been acquired for
         investment and may not be offered, sold, transferred, pledged or
         otherwise disposed of without an effective registration statement under
         the Securities Act of 1933, as amended, and under any applicable state
         securities laws or an opinion of counsel acceptable to the Company that
         the proposed transaction will be exempt from such registration.

The foregoing legend shall be removed upon registration of the legended shares
under the Securities Act of 1933, as amended, and under any applicable state
laws or upon receipt of any opinion of counsel acceptable to the Company that
said registration is no longer required.

         The sole purpose of the agreements, warranties, representations and
legend set forth in the two immediately preceding paragraphs is to prevent
violations of the Securities Act of 1933, as amended, and any applicable state
securities laws.

         [ADD IF ISO: It is the intention of the Company and you that this
option shall, if possible, be an "Incentive Stock Option" as that term is used
in Section 422(b) of the Code and the regulations thereunder. In the event this
option is in any way inconsistent with the legal requirements of the Code or the
regulations thereunder for an "Incentive Stock Option," this option shall be
deemed automatically amended as of the date hereof to conform to such legal
requirements, if such conformity may be achieved by amendment; provided,
however, that no such amendment shall adversely affect your rights hereunder
without your written consent. You understand and agree that to the extent that
the aggregate fair market value (determined at the time the option is granted)
of the shares subject to this option, together with all other incentive stock
options to purchase shares of Common Stock held by you, which are exercisable
for the first time in any calendar year (including options that become
exercisable as a result of a Change in Control, death or Disability) exceed the
$100,000 limitation contained in Section 422(d) of the Code, this option will
not be considered an Incentive Stock Option with respect to such number of
shares in excess of such limitation.]

         [ADD IF NQSO: It is the intention of the Company and you that this
option shall not be an "Incentive Stock Option" as that term is used in Section
422(b) of the Code and the regulations thereunder.]

         NOTHING HEREIN SHALL MODIFY YOUR STATUS AS AN AT-WILL EMPLOYEE OF THE
COMPANY. FURTHER, NOTHING HEREIN GUARANTEES YOU EMPLOYMENT FOR ANY SPECIFIED
PERIOD OF TIME. THIS MEANS THAT EITHER YOU OR THE COMPANY MAY TERMINATE YOUR
EMPLOYMENT AT ANY TIME FOR ANY REASON, OR NO REASON. YOU RECOGNIZE THAT, FOR
INSTANCE, YOU MAY TERMINATE YOUR EMPLOYMENT OR THE COMPANY MAY TERMINATE YOUR
EMPLOYMENT PRIOR TO THE DATE ON WHICH YOUR OPTION BECOMES VESTED.

         ANY DISPUTE OR DISAGREEMENT BETWEEN YOU AND THE COMPANY WITH RESPECT TO
ANY PORTION OF THIS OPTION OR ITS VALIDITY, CONSTRUCTION, MEANING, PERFORMANCE
OR YOUR RIGHTS HEREUNDER SHALL, AT THE OPTION OF THE COMPANY, BE SETTLED BY
ARBITRATION IN ACCORDANCE WITH THE COMMERCIAL ARBITRATION RULES OF THE AMERICAN
ARBITRATION ASSOCIATION OR ITS SUCCESSOR, AS AMENDED FROM TIME TO TIME. HOWEVER,


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PRIOR TO SUBMISSION TO ARBITRATION YOU WILL ATTEMPT TO RESOLVE ANY DISPUTES OR
DISAGREEMENTS WITH THE COMPANY OVER THIS OPTION AMICABLY AND INFORMALLY, IN GOOD
FAITH, FOR A PERIOD NOT TO EXCEED TWO WEEKS. THEREAFTER, THE DISPUTE OR
DISAGREEMENT WILL BE SUBMITTED TO ARBITRATION AT THE OPTION OF THE COMPANY. AT
ANY TIME PRIOR TO A DECISION FROM THE ARBITRATOR(S) BEING RENDERED, YOU AND THE
COMPANY MAY RESOLVE THE DISPUTE BY SETTLEMENT. YOU AND THE COMPANY SHALL EQUALLY
SHARE THE COSTS CHARGED BY THE AMERICAN ARBITRATION ASSOCIATION OR ITS
SUCCESSOR, BUT YOU AND THE COMPANY SHALL OTHERWISE BE SOLELY RESPONSIBLE FOR
YOUR OWN RESPECTIVE COUNSEL FEES AND EXPENSES. THE DECISION OF THE ARBITRATOR(S)
SHALL BE MADE IN WRITING, SETTING FORTH THE AWARD, THE REASONS FOR THE DECISION
AND AWARD AND SHALL BE BINDING AND CONCLUSIVE ON YOU AND THE COMPANY. FURTHER,
NEITHER YOU NOR THE COMPANY SHALL APPEAL ANY SUCH AWARD. JUDGMENT OF A COURT OF
COMPETENT JURISDICTION MAY BE ENTERED UPON THE AWARD AND MAY BE ENFORCED AS SUCH
IN ACCORDANCE WITH THE PROVISIONS OF THE AWARD.

         This option shall be subject to the terms of the Plan in effect on the
date this option is granted, which terms are hereby incorporated herein by
reference and made a part hereof. In the event of any conflict between the terms
of this option and the terms of the Plan in effect on the date of this option,
the terms of the Plan shall govern. This option constitutes the entire
understanding between the Company and you with respect to the subject matter
hereof and no amendment, supplement or waiver of this option, in whole or in
part, shall be binding upon the Company unless in writing and signed by the
President of the Company. This option and the performances of the parties
hereunder shall be construed in accordance with and governed by the laws of the
State of Pennsylvania.

         Please sign the copy of this option and return it to the Company's
Secretary, thereby indicating your understanding of and agreement with its terms
and conditions.

                                 NCO GROUP, INC.

                                 By:
                                     -------------------------------------------
                                          Michael J. Barrist
                                          Chairman & Chief Executive Officer




Date of Grant:
                  --------------------------------------------

Options Granted:                    shares @
                  --------------------------------------------





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                 ACKNOWLEDGEMENT AND ELECTRONIC DELIVERY CONSENT

         I hereby acknowledge receipt of a copy of the foregoing stock option
and of the Plan as of the date of grant set forth above, hereby acknowledge that
this stock option grant discharges any promise (either verbal or written) of the
Company made on or prior to the date of grant to give me a stock option, and,
having read it, hereby signify my understanding of, and my agreement with, its
terms and conditions. In consideration of the grant, I hereby release any claim
I may have against the Company with respect to any promise of a stock option
grant or other equity interest in the Company.


         By signing and returning this form, I also consent to receiving the
Section 10(a) prospectus to the Plan and any amendments or supplements thereto
and any documents required to be delivered therewith, including a copy of the
Company's Form 10-K or Annual Report to Shareholders commencing with the fiscal
year ended December 31, 2003, by email at the email address maintained for me by
the Company as set forth below. I further acknowledge that I may revoke this
consent in whole by providing written notice to:
_______________________________________________________________________________


_________________________________________________     _________________________
Signature of Employee                                      (Date)

_________________________________________________
Name of Employee (Printed)

_________________________________________________
Social Security Number

Email Address:___________________________________












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