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                                                                    EXHIBIT 10.4


                             PC SERVICE SOURCE, INC.

                          STOCK PRICE APPRECIATION PLAN


         1. PURPOSE. The purpose of the Stock Price Appreciation Plan (the
"Plan") of PC Service Source, Inc. ("PCSS"), a Delaware corporation, is to (a)
provide an incentive to its employees to concentrate their efforts in a manner
that will provide for the long-term growth and profitability of PCSS; (b)
encourage stock ownership by the employees in order to promote an identity of
interests with PCSS' shareholders; and (c) provide a means of attracting and
retaining qualified employees.

         2. EFFECTIVE DATE AND TERM OF PLAN. The Plan shall become effective on
such date as it is approved by the Board of Directors of PCSS (the "Board") and
the PCSS stockholders if such approval is necessary or advisable under relevant
securities, tax or other applicable laws, and shall remain in effect until March
1, 2002, unless terminated earlier by the Compensation Committee of the Board
(the "Termination Date").

         3. STOCK SUBJECT TO THE PLAN. There are authorized for issuance and
delivery under the Plan an aggregate of 200,000 shares of common stock, $.01 par
value per share (the "Common Stock"), subject to adjustment as provided in
Section 7 hereof. Such shares may be, in whole or in part, authorized but
unissued shares, whether now or hereafter authorized, or issued shares that have
been reacquired by PCSS.

         4. PLAN ADMINISTRATION. The Plan shall be administered by the
Compensation Committee of the Board. The Compensation Committee shall have full
and final authority to interpret the Plan, adopt, amend and rescind rules and
regulations relating to the Plan, and make all other determinations and take all
other actions necessary and advisable for the administration of the Plan.
Decisions and determinations of the Committee on all matters relating to the
Plan shall be in its sole discretion and shall be conclusive.

         5. ELIGIBILITY. Only those employees of PCSS designated by the
Compensation Committee and who are employed by PCSS on the Stock Price
Appreciation Date (defined below) may participate in the Plan.

         6. STOCK GRANTS. If at any time prior to the Termination Date, the
closing price of the Common Stock as reported on Nasdaq equals or exceeds $15.00
per share for twenty (20) consecutive trading days (the "Stock Price
Appreciation Date"), PCSS shall make the following grants of up to an aggregate
of 200,000 shares of Common Stock to the eligible PCSS employees. Each Employee
will be issued the Common Stock granted pursuant to this Plan within a
reasonable period of time following the Stock Price Appreciation Date unless the
Stock Price Appreciation Date occurs during a PCSS Blackout Period (defined
below), whereupon the Common Stock shall be issued at the end of such Blackout
Period. For purposes of this Plan, the term "Blackout Period" shall mean that
period during which the Board has prohibited PCSS employees and directors from
selling or acquiring Common Stock.

         7. CHANGES IN CAPITALIZATION. If the outstanding shares of Common Stock
are increased, decreased or exchanged for a different number or kind of shares
or other securities, or if additional shares or other property (other than
ordinary dividends) are distributed with respect to such shares of Common Stock




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or other securities, through merger, consolidation, sale of all or substantially
all of the assets of PCSS, reorganization, recapitalization, reclassification,
dividend, stock split, spin-off, split-off or other distribution with respect to
such shares of Common Stock, or other securities, an appropriate and
proportionate adjustment may be made in the maximum number and kind of shares
reserved for issuance under the Plan.

         8. NO RIGHT TO CONTINUE AS AN EMPLOYEE. Neither the Plan nor any action
taken pursuant to the Plan, shall constitute evidence of any agreement or
understanding, express or implied, that PCSS will retain a participant as an
employee of PCSS for any period of time or at any particular rate of
compensation.

         9. AMENDMENT, MODIFICATION, AND TERMINATION. The Compensation Committee
may at any time terminate the Plan prior to the Termination Date and in any
respect amend or modify the Plan; provided, however, that the Compensation
Committee shall condition any amendments on the approval of stockholders if such
approval is necessary or advisable under relevant securities, tax or other
applicable law. No amendment, modification, or termination of the Plan shall in
any manner adversely affect the rights of any participant with respect to shares
of Common Stock to which he or she became entitled prior to such amendment,
modification or termination.

         10. RESTRICTIONS ON DELIVERY AND SALE OF SHARES; LEGENDS. PCSS shall
use its best efforts to cause each share of Common Stock issued under the Plan
to be (a) listed on the Nasdaq or such other market or securities exchange as
PCSS shall be qualified to list its securities on and (b) registered under the
Securities Act of 1933 and any applicable state securities law. If for any
reason a registration statement is not in effect under the Securities Act of
1933 or any applicable state securities laws with respect to the shares of
Common Stock issued or otherwise deliverable hereunder, the Employee shall as a
condition to any delivery of Common Stock hereunder, represent, in writing, that
the shares received are being acquired for investment and not with a view to
distribution and agree that the shares will not be disposed of except pursuant
to an effective registration statement, unless PCSS shall have received an
opinion of counsel that such disposition is exempt from such requirement under
the Securities Act of 1993 any applicable state securities laws. PCSS shall
include on certificates representing shares delivered pursuant to the Plan such
legends referring to the foregoing representations or restrictions and any other
applicable restrictions on resale as the Compensation Committee, in its
discretion, shall deem appropriate.