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                                                                     EXHIBIT 4.6

                           COMMERCIAL METALS COMPANY

                  1999 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

       The Commercial Metals Company 1999 Non-Employee Director Stock Option
Plan (hereinafter called the "Plan") was adopted by the Board of Directors of
Commercial Metals Company, a Delaware corporation (hereinafter called the
"Company"), effective as of November 22, 1999.

                                   ARTICLE 1
                                    PURPOSE

       The purpose of the Plan is to attract and retain Outside Directors of
Commercial Metals Company and to provide such persons with a proprietary
interest in the Company through the issuance of Common Stock that will

              (a) increase the interest of such persons in the Company's
       welfare;

              (b) furnish an incentive to such persons to continue their
       services for the Company; and

              (c) provide a means through which the Company may attract able
       persons as directors.

                                   ARTICLE 2
                                  DEFINITIONS

       For the purpose of the Plan, unless the context requires otherwise, the
following terms shall have the meanings indicated:

       2.1 "Black-Scholes Value" means the value of a Stock Option granted
under the Plan to purchase one share of Common Stock determined pursuant to the
option pricing model commonly known as the Black-Scholes method.

       2.2 "Board" means the board of directors of the Company.

       2.3 "Change of Control" means any of the following: (i) any
consolidation, merger or share exchange of the Company in which the Company is
not the continuing or surviving corporation or pursuant to which shares of the
Company's Common Stock would be converted into cash, securities or other
property, other than a consolidation, merger or share exchange of the Company
in which the holders of the Company's Common Stock immediately prior to such
transaction have the same proportionate ownership of Common Stock of the
surviving corporation immediately after such transaction; (ii) any sale, lease,
exchange or other transfer (excluding transfer by way of pledge or
hypothecation) in one transaction or a series of related

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transactions, of all or substantially all of the assets of the Company; (iii)
the stockholders of the Company approve any plan or proposal for the
liquidation or dissolution of the Company; (iv) the cessation of control (by
virtue of their not constituting a majority of directors) of the Board by the
individuals (the "Continuing Directors") who (x) at the date of this Plan were
directors or (y) become directors after the date of this Plan and whose
election or nomination for election by the Company's stockholders, was approved
by a vote of at least two-thirds of the directors then in office who were
directors at the date of this Plan or whose election or nomination for election
was previously so approved; (v) the acquisition of beneficial ownership (within
the meaning of Rule 13d-3 under the 1934 Act) of an aggregate of 15% of the
voting power of the Company's outstanding voting securities by any person or
group (as such term is used in Rule 13d-5 under the 1934 Act), provided,
however, that notwithstanding the foregoing, an acquisition shall not
constitute a Change of Control hereunder if the acquiror is (w) Daniel E.
Feldman, Moses Feldman, Robert L. Feldman, or Sara B. Feldman (the "Feldmans"),
or any of his or her affiliates, so long as the Feldmans and their affiliates
do not beneficially own an aggregate of 25% or more of the shares of Common
Stock then outstanding, (x) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company and acting in such capacity, (y)
a Subsidiary of the Company or a corporation owned, directly or indirectly, by
the stockholders of the Company in substantially the same proportions as their
ownership of voting securities of the Company or (z) any other person whose
acquisition of shares of voting securities is approved in advance by a majority
of the Continuing Directors; or (vi) in a Title 11 bankruptcy proceeding, the
appointment of a trustee or the conversion of a case involving the Company to a
case under Chapter 7. Under sub-clause (w) of clause (v) of the preceding
sentence, if a person or entity is an affiliate of one or more of the Feldmans
and of another person or entity, such sub-clause (w) shall not serve to exempt
such other person or entity in determining whether a Change of Control has
occurred.

       2.4 "Code" means the Internal Revenue Code of 1986, as amended.

       2.5 "Committee" means the committee appointed or designated by the Board
to administer the Plan in accordance with ARTICLE 3 of this Plan.

       2.6 "Common Stock" means the common stock which the Company is currently
authorized to issue or may in the future be authorized to issue.

       2.7 "Company" means Commercial Metals Company, a Delaware corporation,
and any successor entity.

       2.8 "Date of Grant" means the effective date on which a Stock Option is
awarded to an Outside Director as set forth in the applicable Stock Option
Agreement in accordance with the terms of the Plan.

       2.9 "Election Form" means a form approved by the Committee pursuant to
which an Outside Director elects a method of payment of Fees.

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       2.10 "Employee" means common law employee (as defined in accordance with
the Regulations and Revenue Rulings then applicable under Section 3401(c) of
the Code) of the Company or any Subsidiary of the Company.

       2.11 "Fair Market Value" means, as of a particular date, the mean of the
highest and lowest prices per share on the New York Stock Exchange Consolidated
Tape, or such reporting service as the Committee may select, on the appropriate
date, or in the absence of reported sales on such day, the most recent previous
day for which sales were reported.

       2.12 "Fees" means the cash retainer payable by the Company to an Outside
Director for service as an Outside Director of the Company, as such amount may
be changed from time to time.

       2.13 "Optioned Shares" means the full shares of Common Stock which a
Participant may purchase pursuant to the exercise of a Stock Option granted
pursuant to this Plan.

       2.14 "Option Period" means the period during which a Stock Option may be
exercised.

       2.15 "Option Price" means the price which must be paid by a Participant
upon exercise of a Stock Option to purchase a share of Common Stock.

       2.16 "Options Election Period" means the period beginning on October 1st
(or, with respect to the first full calendar year during the term of the Plan,
November 22, 1999) of each year during the term of the Plan and ending on the
following December 31st, or such other time period designated by the Committee,
during which Outside Directors may elect to receive Stock Options as payment of
some or all of their Fees. If a person becomes an Outside Director on or after
January 1st but before October 1st, including a person serving as a director
and an Employee who becomes an Outside Director because such director's
employment with the Company terminates during such period, the Options Election
Period for such person for that year shall commence on the date such person
first becomes an Outside Director and end 30 days thereafter.

       2.17 "Outside Director" means a director of the Company who is not an
Employee.

       2.18 "Participant" shall mean an Outside Director of the Company.

       2.19 "Plan" means this Commercial Metals Company 1999 Outside Director
Stock Option Plan, as amended from time to time.

       2.20 "Plan Year" means a yearly period during the term of the Plan
beginning on the date of the Company's annual meeting of stockholders and
ending on the day before the Company's next annual meeting of stockholders.

       2.21 "Retirement" means Termination of Service as a Director at or after
attaining age 62.

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       2.22 "Stock Option" means a non-qualified option to purchase Common
Stock granted under the Plan.

       2.23 "Stock Option Agreement" means a written agreement between a
Participant and the Company which sets out the terms of the grant of a Stock
Option.

       2.24 "Subsidiary" means (i) any corporation in an unbroken chain of
corporations beginning with the Company, if each of the corporations other than
the last corporation in the unbroken chain owns stock possessing a majority of
the total combined voting power of all classes of stock in one of the other
corporations in the chain, (ii) any limited partnership, if the Company or any
corporation described in item (i) above owns a majority of the general
partnership interest and a majority of the limited partnership interests
entitled to vote on the removal and replacement of the general partner, and
(iii) any partnership or limited liability company, if the partners or members
thereof are composed only of the Company, any corporation listed in item (i)
above or any limited partnership listed in item (ii) above. "Subsidiaries"
means more than one of any such corporations, limited partnerships,
partnerships or limited liability companies.

       2.25 "Termination of Service as a Director" occurs when a Participant
who is an Outside Director of the Company shall cease to serve as a director of
the Company for any reason.

       2.26 "Total and Permanent Disability" means that the Participant,
because of ill health, physical or mental disability or any other reason beyond
his or her control, is unable to perform his or her duties as a director for a
period of six (6) continuous months, as determined in good faith by the
Committee.

                                   ARTICLE 3
                                 ADMINISTRATION

       The Plan shall be administered by a committee appointed by the Board
(the "Committee"). The Committee shall consist of not fewer than two persons,
each of whom must be a "Non-Employee Director", as defined in Rule 16b-3
promulgated under the Securities Exchange Act of 1934, as such rule now exists
or may hereafter be amended. Any member of the Committee may be removed at any
time, with or without cause, by resolution of the Board. Any vacancy occurring
in the membership of the Committee may be filled by appointment by the Board.

       The Committee shall select one of its members to act as its Chairman and
shall make such rules and regulations for its operation as it deems appropriate.
A majority of the Committee shall constitute a quorum, and the act of a majority
of the members of the Committee present at a meeting at which a quorum is
present shall be the act of the Committee. The Committee, in its discretion,
shall (i) interpret the Plan, (ii) prescribe, amend, and rescind any rules and
regulations necessary or appropriate for the administration of the Plan, and
(iii) make such other determinations and take such other action as it deems
necessary or advisable in the administration of the Plan; provided, however,
that the Committee shall have no discretion with respect to the eligibility or
selection of Outside Directors to receive awards under the Plan or the time at
which

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any such awards are to be granted, and provided further, that the Committee
shall not have the authority to take any action or make any determination that
would materially increase the benefits accruing to Participants under the Plan.
Any interpretation, determination, or other action made or taken by the
Committee shall be final, binding, and conclusive on all interested parties.

                                   ARTICLE 4
                         ELIGIBILITY; GRANT OF OPTIONS

       4.1 Automatic Grant of Options. On the first day of every Plan Year,
each Outside Director serving as such on that date shall automatically be
granted a Stock Option to purchase one thousand five hundred (1,500) shares of
Common Stock on such date, without further action by the Committee.

       If a person becomes an Outside Director during a Plan Year on a date
after the first day of a Plan Year, including a person serving as a director
and an Employee who becomes an Outside Director because such director's
employment with the Company terminates during such Plan Year, such Outside
Director shall automatically be granted a Stock Option to purchase that number
of shares of Common Stock equal to 1,500 multiplied by a fraction, the
numerator of which shall be the number of days until the end of such Plan Year
and the denominator of which shall be the total number of days in such Plan
Year. In the event that such calculation would result in a fractional share
being subject to a Stock Option, the number of shares that may be purchased
under such Stock Option shall be rounded up to the next whole number of shares.
Stock Options granted under this paragraph shall automatically be granted on
the date such person becomes an Outside Director, without further action by the
Committee.

       4.2 Election to Receive Stock Options in Lieu of Cash Fees. A
Participant may elect to receive all or part of the Fees otherwise payable to
him or her during a calendar year in the form of a Stock Option to purchase the
number of shares of Common Stock determined as set forth below in this Section
4.2. An Outside Director who wishes to receive Fees for a calendar year in the
form of a Stock Option must irrevocably elect to do so by delivering a valid
Election Form during the Options Election Period to the Secretary of the
Company or such other person as the Committee may designate. An Outside
Director's timely election to receive a Stock Option in lieu of cash Fees under
this Section 4.2 will be effective as of the first day of the calendar year
covered by the Election Form. Elections to receive Stock Options in lieu of
cash Fees are irrevocable and shall be valid only for the calendar year covered
by such election. The Date of Grant for Stock Options granted under this
Section 4.2 will be the first day of the Plan Year immediately following the
calendar year covered by the Election Form.

       The Committee shall cause to be calculated the Black-Scholes Value as of
the first day of the Plan Year immediately following the calendar year covered
by the Election Form. The Committee shall have complete discretion to assign
such values to the factors utilized in the calculation of the Black-Scholes
Value as the Committee deems appropriate. The Committee may, but shall not be
required to, use the services of Employees, consultants or other agents to
assist the Committee in calculating the Black-Scholes Value. The number of
shares subject to a Stock Option granted pursuant to this Section 4.2 shall be
the number of whole shares equal to (i) the dollar amount of the Fees earned by
the Outside Director that the Outside Director elected to

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receive in the form of a Stock Option divided by (ii) the Black-Scholes Value.
In determining the number of Optioned Shares, any fraction of a share will be
rounded up to the next highest whole number of shares.

       For example:

              Assume that an Outside Director has elected to receive $5,000 of
       his or her Fees in the form of a Stock Option and that the Black-Scholes
       Value was determined to be $10. The Outside Director would be granted a
       Stock Option to purchase 500 shares of Common Stock as payment of the
       $5,000 compensation, calculated as follows: $5,000 divided by $10 = 500
       shares.

       4.3 Vesting; Time of Exercise.

              (a) Stock Options granted pursuant to Section 4.1 will be
       exercisable in the following cumulative installments:

       First Installment: A Stock Option will be exercisable for up to 50% of
       the Optioned Shares (rounded down so that no fractional share is
       exercisable) at any time following the first anniversary of the Date of
       Grant.

       Second Installment: A Stock Option will be exercisable for the remainder
       of the Optioned Shares not exercisable in the first installment at any
       time following the second anniversary of the Date of Grant.

              Notwithstanding the foregoing, the vesting of installments under
       Stock Options granted pursuant to Section 4.1 shall automatically
       accelerate and the Stock Options shall be exercisable in full upon (i)
       the Participant's death, (ii) the Participant's Termination of Service as
       a Director as a result of Total and Permanent Disability, or (iii) the
       occurrence of a Change of Control. The determination of the Committee
       that any of the foregoing conditions has been met shall be binding and
       conclusive on all parties.

              (b) Stock Options granted pursuant to Section 4.2 will be fully
       vested and exercisable on the Date of Grant.

       4.4 Stock Option Agreement. The grant of a Stock Option shall be
evidenced by a Stock Option Agreement setting forth the total number of shares
of Common Stock subject to the Stock Option, the Option Price, the maximum term
of the Stock Option, the Date of Grant, and such other terms and provisions as
are approved by the Committee, but not inconsistent with the Plan. The Company
shall execute a Stock Option Agreement with a Participant promptly after the
Date of Grant of the Stock Option.

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                                   ARTICLE 5
                             SHARES SUBJECT TO PLAN

       The maximum number of shares of Common Stock that may be issued under
the Plan is two hundred thousand (200,000) (as may be adjusted in accordance
with ARTICLES 11 and 12 hereof). All Stock Options granted under the Plan shall
be designated as non-qualified stock options. Shares of Common Stock to be
issued under the Plan may be made available from either authorized but unissued
Common Stock or Common Stock held by the Company in its treasury. Shares of
Common Stock previously subject to Stock Options that are forfeited,
terminated, or settled in cash in lieu of Common Stock, or expired unexercised
shall immediately become available for grants of Stock Options under the Plan.

       During the term of this Plan, the Company will at all times reserve and
keep available the number of shares of Common Stock that shall be sufficient to
satisfy the requirements of this Plan.

                                   ARTICLE 6
                                  OPTION PRICE

       The Option Price for any share of Common Stock which may be purchased
under a Stock Option shall be One Hundred Percent (100%) of the Fair Market
Value of the share on the Date of Grant.

                                   ARTICLE 7
                           OPTION PERIOD; FORFEITURE

       No Stock Option granted under the Plan may be exercised at any time
after the end of its Option Period.

       The Option Period for each Stock Option will terminate on the first of
the following to occur:

              (a) 5 p.m. on the seventh anniversary of the Date of Grant;

              (b) 5 p.m. on the date which is one (1) year following the
       Participant's Termination of Service as a Director due to death or Total
       and Permanent Disability;

              (c) 5 p.m. on the date that is two (2) years following the
       Participant's Termination of Service as a Director due to Retirement;
       provided that any installment not vested and exercisable on the
       Participant's Retirement shall terminate and be forfeited on such date;
       or

              (d) 5 p.m. on the date that is thirty (30) days after any other
       Termination of Service as a Director; provided that any installment not
       vested and exercisable on the date of such Termination of Service as a
       Director shall terminate and be forfeited on such date.

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                                   ARTICLE 8
                               EXERCISE OF OPTION

       Stock Options may be exercised during the Option Period. Stock Options
may be exercised at such times and in such amounts as provided in this Plan and
the applicable Stock Option Agreements, subject to the terms, conditions, and
restrictions of the Plan.

       In no event may a Stock Option be exercised or shares of Common Stock be
issued pursuant to a Stock Option if a necessary listing of the shares on a
stock exchange or any registration under state or federal securities laws
required under the circumstances has not been accomplished. No Stock Option may
be exercised for a fractional share of Stock. The granting of a Stock Option
shall impose no obligation upon the Participant to exercise that Stock Option.

       Subject to such administrative regulations as the Committee may from
time to time adopt, a Stock Option may be exercised by the delivery of written
notice to the Committee setting forth the number of shares of Common Stock with
respect to which the Stock Option is to be exercised and the date of exercise
thereof (the "Exercise Date") which shall be at least three (3) days after
giving such notice unless an earlier time shall have been mutually agreed upon.
On the Exercise Date, the Participant shall deliver to the Company
consideration with a value equal to the total Option Price of the shares of
Common Stock to be purchased, payable as follows: (a) cash, check, bank draft,
or money order payable to the order of the Company, (b) Common Stock owned by
the Participant on the Exercise Date, valued at its Fair Market Value on the
Exercise Date, (c) by delivery (including by FAX) to the Company or its
designated agent of an executed irrevocable option exercise form together with
irrevocable instructions from the Participant to a broker or dealer, reasonably
acceptable to the Company, to sell certain of the shares of Common Stock
purchased upon exercise of the Stock Option or to pledge such shares as
collateral for a loan and promptly deliver to the Company the amount of sale or
loan proceeds necessary to pay such purchase price, and/or (d) any other form
of consideration that is acceptable to the Committee in its sole discretion.

       Upon payment of all amounts due from the Participant, the Company shall
cause certificates for the Common Stock then being purchased to be delivered to
the Participant (or the person exercising the Participant's Stock Option in the
event of his death) at its principal business office promptly after the
Exercise Date. The obligation of the Company to deliver shares of Common Stock
shall, however, be subject to the condition that if at any time the Committee
shall determine in its discretion that the listing, registration, or
qualification of the Stock Option or the Common Stock upon any securities
exchange or under any state or federal law, or the consent or approval of any
governmental regulatory body, is necessary or desirable as a condition of, or
in connection with, the Stock Option or the issuance or purchase of shares of
Common Stock thereunder, the Stock Option may not be exercised in whole or in
part unless such listing, registration, qualification, consent, or approval
shall have been effected or obtained free of any conditions not acceptable to
the Committee.

       If the Participant fails to pay for any of the Common Stock specified in
such notice or fails to accept delivery thereof, the Participant's right to
purchase such Common Stock may be terminated by the Company.

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                                   ARTICLE 9
                          AMENDMENT OR DISCONTINUANCE

       Subject to the limitations set forth in this ARTICLE 9, the Board may at
any time and from time to time, without the consent of the Participants,
suspend or discontinue the Plan in whole or in part. The Board may amend the
Plan at any time and for any reason without stockholder approval; provided,
however, that the Board may condition any amendment on the approval of
stockholders of the Company if such approval is necessary or deemed advisable
with respect to tax, securities or other applicable laws, policies and
regulations.

       Subject to the foregoing, any such amendment shall, to the extent deemed
necessary or advisable by the Committee, be applicable to any outstanding Stock
Options theretofore granted under the Plan, notwithstanding any contrary
provisions contained in any Stock Option Agreement. In the event of any such
amendments to the Plan, the holder of any Stock Option outstanding under the
Plan shall, upon request of the Committee and as a condition to the
exercisability thereof, execute a conforming amendment in the form prescribed
by the Committee to any Stock Option Agreement relating thereto within such
reasonable time as the Committee shall specify in such request. Notwithstanding
anything contained in this Plan to the contrary, unless required by law, no
action contemplated or permitted by this ARTICLE 9 shall adversely affect any
rights of Participants or obligations of the Company to Participants with
respect to any Stock Options theretofore granted under the Plan without the
consent of the affected Participant.

                                   ARTICLE 10
                           STOCKHOLDER APPROVAL; TERM

       Anything in the Plan to the contrary notwithstanding, the effectiveness
of the Plan and of the grant of all Stock Options hereunder is in all respects
subject to the approval of the Plan by the affirmative vote of the holders of a
majority of the shares of the Common Stock present in person or by proxy and
entitled to vote at a meeting of stockholders at which the Plan is presented
for approval. Stock Options may be granted under the Plan prior to the time of
stockholder approval. Any such Stock Options granted prior to such stockholder
approval shall be subject to such stockholder approval. Unless sooner
terminated by action of the Board, the Plan will terminate on January 31, 2010,
but Stock Options granted before such date will continue to be effective in
accordance with their terms and conditions.

                                   ARTICLE 11
                              CAPITAL ADJUSTMENTS

       If at any time while the Plan is in effect or unexercised Stock Options
are outstanding there shall be any increase or decrease in the number of issued
and outstanding shares of Common Stock resulting from (1) the declaration or
payment of a stock dividend, (2) any recapitalization resulting in a stock
split-up, combination, or exchange of shares of Common Stock, or (3) other
increase or decrease in such shares of Common Stock effected without receipt of
consideration by the Company, then and in such event:

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              (i) An appropriate adjustment shall be made in the maximum number
       of shares of Common Stock then subject to being issued under the Plan,
       to the end that the same proportion of the Company's issued and
       outstanding shares of Common Stock shall continue to be subject to being
       so issued.

              (ii) Appropriate adjustments shall be made in the number of
       shares of Common Stock subject to purchase pursuant to Stock Options to
       be granted under ARTICLE 4 of the Plan, to the end that Stock Options to
       purchase the same proportion of the Company's issued and outstanding
       shares of Common Stock shall be granted under ARTICLE 4.

              (iii) Appropriate adjustments shall be made in the number of
       shares of Common Stock and the Option Price thereof then subject to
       purchase pursuant to each such Stock Option previously granted and
       unexercised, to the end that the same proportion of the Company's issued
       and outstanding shares of Common Stock in each such instance shall
       remain subject to purchase at the same aggregate Option Price.

       Except as otherwise expressly provided herein, the issuance by the
Company of shares of its capital stock of any class, or securities convertible
into shares of capital stock of any class, either in connection with direct
sale or upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of the Company convertible into such shares
or other securities, shall not affect, and no adjustment by reason thereof
shall be made with respect to, the number of or Option Price of shares of
Common Stock then subject to outstanding Stock Options granted under the Plan.

       Upon the occurrence of each event requiring an adjustment with respect
to any Stock Option, the Company shall mail to each Participant its computation
of such adjustment which shall be conclusive and shall be binding upon each
such Participant.

                                   ARTICLE 12
                   RECAPITALIZATION, MERGER AND CONSOLIDATION

       12.1 General. The existence of this Plan and Stock Options granted
hereunder shall not affect in any way the right or power of the Company or its
stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations, or other changes in the Company's capital structure and its
business, or any merger or consolidation of the Company, or any issue of bonds,
debentures, preferred or preference stocks ranking prior to or otherwise
affecting the Common Stock or the rights thereof (or any rights, options, or
warrants to purchase same), or the dissolution or liquidation of the Company,
or any sale or transfer of all or any part of its assets or business, or any
other corporate act or proceeding, whether of a similar character or otherwise.

       12.2 Adjustment; Company Survives. Subject to any required action by the
stockholders, if the Company shall be the surviving or resulting corporation in
any merger, consolidation or share exchange, any Stock Option granted hereunder
shall pertain to and apply to the securities or rights (including cash,
property, or assets) to which a holder of the number of shares of Common Stock
subject to the Stock Option would have been entitled.

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       12.3 Adjustment; Company Does Not Survive. In the event of any
reorganization, merger, consolidation or share exchange pursuant to which the
Company is not the surviving or resulting corporation, there shall be
substituted for each share of Common Stock subject to the unexercised portions
of such outstanding Stock Options that number of shares of each class of stock
or other securities or that amount of cash, property or assets of the
surviving, resulting or consolidated company which were distributed or are to
be distributed to the stockholders of the Company in respect of each share of
Common Stock held by them, such outstanding Stock Options to be thereafter
exercisable for such stock, securities, cash or property in accordance with
their terms. Notwithstanding the foregoing, however, the Committee, in its sole
discretion, may cancel all such Stock Options as of the effective date of any
such reorganization, merger, consolidation, share exchange or of any
dissolution or liquidation of the Company by giving notice to each holder
thereof or his personal representative of its intention to do so and by
permitting the purchase, during the thirty (30) day period next preceding such
effective date, of all of the shares of Common Stock subject to such
outstanding Stock Options.

       12.4 Notice of Adjustment. Upon the occurrence of each event requiring
an adjustment of the Option Price or the number of shares of Common Stock
purchasable pursuant to Stock Options granted pursuant to the terms of this
Plan, the Company shall mail to each Participant its computation of such
adjustment, which shall be conclusive and shall be binding upon each such
Participant.

                                   ARTICLE 13
                           LIQUIDATION OR DISSOLUTION

       In case the Company shall, at any time while any Stock Option under this
Plan shall be in force and remain unexpired, (i) sell all or substantially all
of its property, or (ii) dissolve, liquidate, or wind up its affairs, then each
Participant may thereafter receive upon exercise hereof (in lieu of each share
of Common Stock of the Company which such Participant would have been entitled
to receive) the same kind and amount of any securities or assets as may be
issuable, distributable, or payable upon any such sale, dissolution,
liquidation, or winding up with respect to each share of Common Stock of the
Company. If the Company shall, at any time prior to the expiration of any Stock
Option, make any partial distribution of its assets, in the nature of a partial
liquidation, whether payable in cash or in kind (but excluding the distribution
of a cash dividend payable out of earned surplus and designated as such) then
in such event the Option Prices then in effect with respect to each Stock
Option shall be reduced, on the payment date of such distribution, in
proportion to the percentage reduction in the tangible book value of the shares
of the Company's Common Stock (determined in accordance with generally accepted
accounting principles) resulting by reason of such distribution.

                                   ARTICLE 14
                            MISCELLANEOUS PROVISIONS

       14.1 Assignability. No Stock Option granted under this Plan shall be
assignable or otherwise transferable by the Participant (or his or her
authorized legal representative) during the Participant's lifetime and, after
the death of the Participant, other than by will or the laws of descent and
distribution or as provided below in this ARTICLE 14. All or a portion of a
Stock

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Option granted to a Participant may be assigned by such Participant to (i) the
spouse, children or grandchildren of the Participant ("Immediate Family
Members"), (ii) a trust or trusts for the exclusive benefit of such Immediate
Family Members, or (iii) a partnership in which such Immediate Family Members
are the only partners, (iv) an entity exempt from federal income tax pursuant to
Section 501(c)(3) of the Code or any successor provision, or (v) a split
interest trust or pooled income fund described in Section 2522(c)(2) of the Code
or any successor provision, provided that (x) there shall be no consideration
for any such transfer, and (y) subsequent transfers of transferred Stock Options
shall be prohibited except those by will or the laws of descent and
distribution. Following transfer, any such Stock Option shall continue to be
subject to the same terms and conditions as were applicable immediately prior to
transfer, provided that for purposes of Articles 8, 9, 11, 12, 13 and 14 hereof
the term "Participant" shall be deemed to include the transferee. The events of
Termination of Service shall continue to be applied with respect to the original
Participant, following which the Stock Options shall be exercisable by the
transferee only to the extent and for the periods specified in the Plan and the
Stock Option Agreement. The Committee and the Company shall have no obligation
to inform any transferee of a Stock Option of any expiration, termination, lapse
or acceleration of such Option. The Company shall have no obligation to register
with any federal or state securities commission or agency any Common Stock
issuable or issued under a Stock Option that has been transferred by a
Participant under this Section 14.1.

       14.2 Investment Intent. The Company may require that there be presented
to and filed with it by any Participant(s) under the Plan, such evidence as it
may deem necessary to establish that the Stock Options granted or the shares of
Common Stock to be purchased or transferred are being acquired for investment
purposes and not with a view to their distribution.

       14.3 No Employment Relationship. Each Participant is not an Employee of
the Company. Nothing herein shall be construed to create an employer-employee
relationship between the Company and the Participant.

       14.4 Stockholders' Rights. The holder of a Stock Option shall have none
of the rights or privileges of a stockholder except with respect to shares
which have been actually issued.

       14.5 Effect of the Plan. Neither the adoption of this Plan nor any
action of the Board or the Committee shall be deemed to give any person any
right to be granted a Stock Option to purchase Common Stock of the Company or
any other rights except as may be evidenced by a Stock Option Agreement, or any
amendment thereto, duly authorized by the Committee and executed on behalf of
the Company, and then only to the extent and upon the terms and conditions
expressly set forth therein.

       14.6 Indemnification of Board and Committee. No current or previous
member of the Board or the Committee, nor any officer or employee of the Company
acting on behalf of the Board or the Committee, shall be personally liable for
any action, determination, or interpretation taken or made in good faith with
respect to the Plan, and all such members of the Board and the Committee and
each and any officer or employee of the Company acting on their behalf shall, to
the extent permitted by law, be fully indemnified and protected by the Company
in respect of any such action, determination or interpretation. The foregoing
right of indemnification shall not be

                                       12

<PAGE>   13

exclusive of any other rights of indemnification to which such individuals may
be entitled under the Company's Certificate of Incorporation or Bylaws, by
contract, as a matter of law, or otherwise.

       14.7 Restrictions. This Plan, and the granting and exercise of Stock
Options hereunder, and the obligation of the Company to sell and deliver Common
Stock under such Stock Options, shall be subject to all applicable foreign and
United States laws, rules and regulations, and to such approvals on the part of
any governmental agencies or stock exchanges or transaction reporting systems
as may be required. No Common Stock or other form of payment shall be issued
with respect to any Stock Option unless the Company shall be satisfied based on
the advice of its counsel that such issuance will be in compliance with
applicable federal and state securities laws and the requirements of any
regulatory authority having jurisdiction over the securities of the Company.
Unless the Stock Options and Common Stock covered by this Plan have been
registered under the Securities Act of 1933, as amended, each person exercising
a Stock Option under this Plan may be required by the Company to give a
representation in writing in form and substance satisfactory to the Company to
the effect that he is acquiring such shares for his own account for investment
and not with a view to, or for sale in connection with, the distribution of
such shares or any part thereof. If any provision of this Plan is found not to
be in compliance with such rules, such provision shall be null and void to the
extent required to permit this Plan to comply with such rules. Certificates
evidencing shares of Common Stock delivered under this Plan may be subject to
such stop transfer orders and other restrictions as the Committee may deem
advisable under the rules, regulations and other requirements of the Securities
and Exchange Commission, any securities exchange or transaction reporting
system upon which the Common Stock is then listed or quoted, and any applicable
federal, foreign and state securities law. The Committee may cause a legend or
legends to be placed upon any such certificates to make appropriate reference
to such restrictions.

       14.8 Gender and Number. Where the context permits, words in the
masculine gender shall include the feminine and neuter genders, the plural form
of a word shall include the singular form, and the singular form of a word
shall include the plural form.

       14.9 Tax Requirements. The Company shall have the right to deduct from
all amounts hereunder paid in cash or other form, any Federal, state, or local
taxes required by law to be withheld with respect to such payments. The
Participant receiving shares of Common Stock issued upon exercise of Stock
Options granted under the Plan shall be required to pay the Company the amount
of any taxes which the Company is required to withhold with respect to such
shares of Common Stock. Such payments shall be required to be made prior to the
delivery of any certificate representing such shares of Common Stock. Such
payment may be made in cash, by check or through the delivery of shares of
Common Stock owned by the Participant (which may be effected by the actual
delivery of shares of Common Stock by the Participant or by the Company's
withholding a number of shares to be issued upon the exercise of a Stock
Option, if applicable), which shares have an aggregate Fair Market Value equal
to the required minimum withholding payment, or any combination thereof.

       14.10 Use of Proceeds. Proceeds from the sale of shares of Common Stock
pursuant to Stock Options granted under this Plan shall constitute general
funds of the Company.

                                       13

<PAGE>   14

       IN WITNESS WHEREOF, the Company has caused this instrument to be
executed as of November 22, 1999, by its President and Secretary pursuant to
prior action taken by the Board.

                                     COMMERCIAL METALS COMPANY

                                     By: /s/ Stanley A. Rabin
                                         --------------------------------------
                                         President
Attest:

/s/ David M. Sudbury
----------------------------
Secretary

                                       14<PAGE>   1
                                                                    EXHIBIT 10.2

                                    MICROSOFT
                             LARGE ACCOUNT RESELLER
                                    AGREEMENT

This Microsoft Large Account Reseller Agreement ("Agreement") is entered into as
of the 1st day of January, 2000 (the "Effective Date") between MSLI, GP, having
its principal place of business at 6100 Neil Road, Suite 210, Reno, NV
89511-1137 ("MICROSOFT"), and SOFTWARE SPECTRUM, INC. having its principal place
of business at 2140 Merritt Drive, Garland, TX 75041 ("COMPANY").

1.       PURPOSE.

The purpose of this Agreement is to set forth the framework by which MICROSOFT
appoints COMPANY as a non-exclusive Large Account Reseller in the Territory with
the ability to collect orders for License Confirmations and related payments for
Select Software Products from Volume Licensing Customers that have designated
COMPANY in their Enrollment Agreement as their Large Account Reseller.

2.       DEFINITIONS

Except as set forth above, all capitalized terms included in this Agreement are
as defined in Schedule A, attached hereto and incorporated herein by reference.

3.       ADDENDUM TO THE AGREEMENT

COMPANY's rights and obligations with respect to the authorization to collect
orders for License Confirmations and payments for Select Software Products are
set forth in this Agreement and are subject to the terms of any Addenda which
the parties may subsequently sign. Each Addendum shall be incorporated into and
made a part of this Agreement. In the event of inconsistency, the terms of any
applicable Addendum shall prevail over this Agreement. The terms of this
Agreement, including any Addenda, shall prevail over any provisions in purchase
orders or set-up forms.

4.       TERM AND TERMINATION

         4.1      TERM

This Agreement shall take effect on the Effective Date and shall continue until
June 30, 2000.

         4.2      TERMINATION

                  4(a)     TERMINATION WITHOUT CAUSE

Either party shall have the right to terminate this Agreement at any time,
without cause and without the intervention of the courts, on the delivery of
thirty (30) calendar days' prior written notice. Neither party shall be
responsible to the other for any costs or damages resulting from the termination
of this Agreement under this section.

                  4(b)    IMMEDIATE TERMINATION WITH CAUSE

Microsoft may terminate this Agreement immediately in the event that Company
breaches its confidentiality obligation as set forth in Section 17 below.
Termination shall be effective on the date set forth in the termination notice.

                 Microsoft Confidential - Disclosure Prohibited        MICROSOFT

<PAGE>   2
                  4(c)     TERMINATION WITH CAUSE

Without prejudice to MICROSOFT's other rights or remedies, MICROSOFT shall have
the right to terminate this Agreement immediately upon written notice if any of
the following events occurs:

                           (i) If COMPANY breaches any of the material terms or
conditions of this Agreement, and such breach remains unremedied to MICROSOFT's
reasonable satisfaction for thirty (30) calendar days after COMPANY receives
written notice of such breach; or

                           (ii) If COMPANY makes any assignment for the benefit
of creditors, files a petition in bankruptcy, or is adjudged bankrupt or becomes
insolvent, or is placed in the hands of a receiver. The equivalent of any of
these proceedings or acts, though known and/or designated by some other name or
term in the Territory, shall likewise constitute grounds for termination of this
Agreement.

         4.3      RIGHTS UPON EXPIRATION OR TERMINATION

Any amounts which have accrued prior to termination or expiration shall become
immediately due and payable. After the termination or expiration of this
Agreement, MICROSOFT shall retain the right, at its sole discretion, to direct
all of COMPANY's Volume Licensing Customers to order License Confirmations from
and pay amounts due to MICROSOFT or to any Volume Licensing Customer's newly
designated Large Account Reseller, if any. In such an event, COMPANY shall not
under any circumstances be entitled to any portion of, or any compensation for,
the Volume Licensing Customer's next orders and payments or any future orders
and payments. Provided that the Volume Licensing Customer does not designate a
new Large Account Reseller and MICROSOFT does not exercise it rights as
identified above, COMPANY may continue to collect orders for License
Confirmations and collect payments for Select Software Products from its
existing Volume Licensing Customers until their respective volume licensing
agreements expire, provided that COMPANY abides by all terms and conditions of
this Agreement. For purposes of this section, any and all terms and conditions
which govern COMPANY's rights and obligations related to receiving orders and
payments shall survive termination or expiration.

5.       COMPANY RIGHTS AND OBLIGATIONS

         5.1      SELECT SOFTWARE PRODUCT ORDERS

COMPANY may only collect orders for License Confirmations from Volume Licensing
Customers which are business entities established under the laws of and
located in the Territory. Such Volume Licensing Customers may designate COMPANY
on an Enrollment Agreement as its Large Account Reseller for itself and other
related companies all of which exist in the Territory. COMPANY may also collect
orders for License Confirmations and payments for Select Software Products from
any VLC Affiliates which are authorized to run Select Software Products
according to the terms of any Enrollment Agreements entered into between
MICROSOFT and a Volume Licensing Customer established and located in the
Territory. COMPANY may not collect orders for License Confirmations and payments
for Select Software Products from any Volume Licensing Customers who initiates
an Enrollment Agreement outside of the Territory.

         5.2      DOCUMENTATION

                  (a) COMPANY is authorized to purchase Documentation Components
from MICROSOFT Worldwide Fulfillment for resale only to Volume Licensing
Customers which have selected COMPANY as their Large Account Reseller. COMPANY
must establish a validation process by which COMPANY will ensure that only
Volume Licensing Customers receive Documentation Components. This validation
process must include, at a minimum, verification of the Enrollment Agreement
Number of the Volume Licensing Customer. The validation process must be
documented in writing and be made available to Microsoft upon request. Price
protection is not available for Documentation Components purchased from
Microsoft Worldwide Fulfillment.

                                                                          Page 2
MSLI, GP
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   3

                  (b) COMPANY may request authorization to return Documentation
Components purchased from Microsoft Worldwide Fulfillment within sixty (60)
calendar days from the date of MICROSOFT's invoice. Upon request, MICROSOFT
will provide COMPANY with a Return Authorization Form which COMPANY must
complete and return to MICROSOFT. MICROSOFT will issue a return authorization
number for Documentation Components meeting return criteria. Documentation
Components must be returned within thirty (30) calendar days of the issuance of
the return authorization number. Freight costs shall be paid by COMPANY.
MICROSOFT shall issue COMPANY a purchase credit in the amount of the authorized
return.

         5.3      USE RESTRICTIONS

Nothing in this Agreement authorizes the Large Account Reseller to use Select
Software Products internally or to distribute or otherwise transfer Select
Software Products to any Large Account Reseller Affiliate.

         5.4      COMPANY ACCEPTANCE OF ENROLLMENT AGREEMENTS

In order to remain authorized to collect orders for License Confirmations and
purchase Documentation Components from MICROSOFT for resale to its Volume
Licensing Customers, an authorized representative of COMPANY must review and
acknowledge the Volume Licensing Customer's Enrollment Agreements. COMPANY's
signature on the Enrollment Agreement shall constitute COMPANY's agreement to
pay MICROSOFT as set forth in Section 5.7 below for all copies of Select
Software Products made by the Volume Licensing Customer pursuant to such
Enrollment Agreement.

         5.5      COMPANY Select Software Product License Price Schedule

The price lists that show the prices that COMPANY must pay to MICROSOFT for any
Volume Licensing Customer orders for License Confirmations (the "Select Software
Price Lists") are available on CP Web. From time to time, MICROSOFT will also
deliver the current Select Software Price Lists to COMPANY through EDI.
MICROSOFT may modify the Select Software Price Lists at any time by providing
thirty (30) calendar days written notice to COMPANY.

         5.6      EDI IMPLEMENTATION/ELECTRONIC DATA INTERCHANGE

COMPANY, at its sole cost, shall implement a functioning EDI process which will
exchange the following transaction sets between COMPANY and MICROSOFT: Purchase
Order Acknowledgment (855), Purchase Order Transmission (850), and Invoices
(810).

                                                                          Page 3
MSLI, GP
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   4

         5.7      COMPANY'S REPORTING AND/OR ORDERING AND PAYMENT TO MICROSOFT

                  (a)      MICROSOFT SELECT CONSUMPTION REPORTING

Except for Enterprise Agreements, for each COMPANY Enrollment Agreement, COMPANY
shall deliver to MICROSOFT via EDI or any other electronic format specified by
MICROSOFT no later than the fifteenth (15th) calendar day of each calendar
month, a purchase order for License Confirmations ordered by the Volume
Licensing Customer in the immediately previous calendar month. For each
Enterprise Agreement, COMPANY shall deliver to MICROSOFT via EDI or any other
electronic format specified by MICROSOFT, (i) a purchase order for the
Enterprise Package upon execution of such agreement, and (ii) a purchase order
for each additional desktop license ordered or acquired from COMPANY at the
times specified in such agreement. Following receipt of such purchase order,
MICROSOFT shall invoice COMPANY and COMPANY shall be obligated to pay MICROSOFT
according to the Select Software Price List, along with any applicable quarterly
Upgrade Advantage fees. If the Volume Licensing Customer elects to pre-pay any
or all of its Upgrade Advantage commitment, COMPANY shall immediately report
such pre-payment to MICROSOFT, MICROSOFT shall invoice COMPANY immediately
following receipt of such report, and COMPANY shall be obligated to pay
MICROSOFT pursuant to the terms of this Section 5.7.

                  (b)      PAYMENT TERMS

All amounts are due and owing within thirty (30) calendar days of date of
MICROSOFT's invoice. All payments not received by MICROSOFT from COMPANY within
the required time frame may be assessed a finance charge of two percent (2%) of
the invoice amount per month or the legal maximum, which ever is less. COMPANY
shall be obligated to pay MICROSOFT any and all amounts due regardless of
whether COMPANY has received payment from the Volume Licensing Customer. Failure
by COMPANY to meet payment terms may result in a hold by MICROSOFT of all
pending COMPANY orders. COMPANY shall use its best efforts to collect any and
all amounts due from any Volume Licensing Customer. Notwithstanding the
foregoing, if any Enterprise Customer defaults on its payment obligation to
COMPANY for more than ninety (90) calendar days, COMPANY will provide MICROSOFT
with written notice identifying the Enterprise Customer and the amount of the
delinquency. COMPANY shall deliver such notice to MICROSOFT at the address set
forth in Section 19 below. Provided that the Enterprise Customer RDG is unable
or unwilling to pay the amounts due, then COMPANY shall be released from any
payment obligation arising from the delinquent Enterprise Customer's account,
provided that COMPANY provide proof of its best efforts to collect any
outstanding amounts and assigns to MICROSOFT any and all right, title and
interest to the delinquent Enterprise Customer's outstanding payments.

All payments shall be in the form of bank wire transfer or electronic funds
transfer through an Automated Clearinghouse ("ACH") with electronic remittance
detail attached.

Payments shall be remitted to the following account:

                MSLI Western Region Collections #842467
                Account #375 120 5782
                ABA# 1110-0001-2
                Bank of America

All payments must be sent to Bank of America at the address indicated above
using the 820 Remittance EDI transaction set or other form of ACH payment with
electronic remittance detail attached. Remittance detail must be received by
Bank of America by 10:00AM Central time/8:00AM Pacific time to ensure same-day
credit to COMPANY's account. COMPANY may not withhold payment or take deductions
prior to MICROSOFT issuing credit for rebates, price adjustments, billing errors
or any other credit memo issued by MICROSOFT.

                                                                          Page 4

MSLI, GP
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   5

                  (c)      REPORT REVISIONS

COMPANY shall use its best efforts to process all adjustments (e.g. ordering
mistakes) to Volume Licensing Customer orders for License Confirmations for of
Select Software Product within ninety (90) calendar days from the original
invoice date. All revised reports and orders must provide detailed back-up as
required by MICROSOFT. MICROSOFT reserves the right to review the circumstance
of all claims submitted more than one hundred eighty (180) calendar days from
the original invoice date, and may determine whether such revised report is
eligible for credit.

          5.8     NO OTHER PRODUCT WARRANTIES BY COMPANY

Neither COMPANY nor any of its employees or agents shall have any right to make
any other warranties or promises for the use of Select Software Product which
are not contained in the written warranty document accompanying such product.
COMPANY may, however, give instructions for the use of the Select Software
Product that are contained within End User documentation provided with the
manual or MICROSOFT product literature denoted by a MICROSOFT part number or
authorized in writing by MICROSOFT.

          5.9     NO ALTERATIONS OF SELECT SOFTWARE PRODUCT/CDs/WELCOME KITS

COMPANY shall not alter, modify, decompile, reverse engineer any Select Software
Product and shall have no authority to make copies of MICROSOFT diskettes, CDs
or documentation without the prior written consent of MICROSOFT. COMPANY shall
distribute Welcome Kits to Volume Licensing Customers in unopened packages.

          5.10     USE OF TRADEMARKS

This Agreement does not constitute a trademark or service mark license. COMPANY
acknowledges and agrees that the Trademarks are the exclusive property of
MICROSOFT or one of its affiliated companies and that COMPANY is not entitled
either by implication or otherwise to any title in the Trademarks. COMPANY shall
not use any Trademarks other than in accordance with this Agreement (including
but not limited to the guidelines set out at http://www.microsoft.com/trademarks
or any such successor web site) or as otherwise permitted in writing from time
to time by MICROSOFT. COMPANY shall use the appropriate trademark symbol "TM" or
"(R)" in a superscript and clearly indicate MICROSOFT'S ownership of the
Trademark(s) whenever the Select Software Product name is first mentioned in any
advertisement, brochure, or other manner in connection with Select Software
Products.

         5.11     CREDIT/FINANCIAL STATEMENT

The terms of this Agreement are subject to MICROSOFT approval of COMPANY's
continued credit worthiness. MICROSOFT shall have the right to regularly review
COMPANY's credit status and shall obtain, to the extent reasonably possible,
financial information through publicly available means. If such information is
not reasonably available or is not satisfactory to MICROSOFT, MICROSOFT may
request and COMPANY shall provide sufficient information to allow MICROSOFT to
assess COMPANY's credit worthiness, including but not limited to COMPANY's
Financial Statement.

                                                                          Page 5

MSLI, GP
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   6

         5.12     TAXES

                  (a)      COMPANY TAXES

All amounts to be paid by COMPANY to MICROSOFT herein are exclusive of any
federal, state, municipal or other governmental taxes, including income,
franchise, excise, sales, use, gross receipts, value added, goods and services,
property or similar tax, now or hereafter imposed on COMPANY. Such charges shall
be the responsibility of COMPANY and may not be passed on to MICROSOFT, unless
they are owed solely as a result of entering into this Agreement and are
required to be collected from MICROSOFT under applicable law.

                  (b)      BILLING AND COLLECTION

COMPANY will bill, collect and remit sales, use, value added, and other
comparable taxes determined by COMPANY to be due with respect to the collection
and receipt of orders for License Confirmations. MICROSOFT is not liable for any
taxes, including without limitation, income taxes, withholding taxes, value
added, franchise, gross receipt, sales, use, property or similar taxes, duties,
levies, fees, excises or tariffs incurred in connection with or related to
Company's collection and receipt of orders for License Confirmations. COMPANY
takes full responsibility for all such taxes, including penalties, interest and
other additions thereon.

                  (c)       WITHHELD TAXES

If, after a determination by foreign tax authorities, any taxes are required to
be withheld, on payments made by COMPANY to MICROSOFT, COMPANY may deduct such
taxes from the amount owed MICROSOFT and pay them to the appropriate taxing
authority, provided however, that COMPANY shall promptly secure and deliver to
MICROSOFT an official receipt for any such taxes withheld or other documents
necessary to enable MICROSOFT to claim a U.S. Foreign Tax Credit. COMPANY will
make certain that any taxes withheld are minimized to the extent possible under
applicable law.

          5.13    COMPLIANCE WITH APPLICABLE LAWS/ANTI-PIRACY

COMPANY shall ensure that it performs its obligations under this Agreement in
accordance with any and all applicable laws and regulations in the Territory.
Additionally, COMPANY shall take all commercially reasonable steps to prevent
unauthorized distribution, duplication or pirating of the License Software
Product.

          5.14    SALES TAXES

COMPANY shall either provide MICROSOFT with a bona fide resale certificate for
all License Confirmations delivered through COMPANY by MICROSOFT pursuant to the
terms of this Agreement, or shall pay to MICROSOFT all applicable sales, use or
other excise taxes due on such License Confirmations.

          5.15    AGREEMENTS BETWEEN COMPANY AND VOLUME LICENSING CUSTOMERS

COMPANY shall have complete discretion to establish with each Volume Licensing
Customer the pricing and all other terms and conditions regarding COMPANY's
collection of orders for License Confirmations and payments for Select Software
Product from Volume Licensing Customers. The negotiation of these terms between
COMPANY and its Volume Licensing Customers shall not be subject to approval or
review by MICROSOFT in any way.

                                                                          Page 6

MSLI, GP
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   7

         5.16     SYSTEMS YEAR 2000 READINESS

COMPANY will use its best efforts to ensure that all systems used to manage and
report orders for License Confirmations and to otherwise fulfill COMPANY's
obligations under this Agreement are Year 2000 compliant. MICROSOFT reserves the
right to monitor and review COMPANY's systems capabilities as is necessary to
ensure COMPANY's ability to perform its obligations under this Agreement during
the transition between the 1999 and 2000 calendar years. Additionally, COMPANY
will provide MICROSOFT with reports on COMPANY's Year 2000 readiness on
MICROSOFT's request.

         5.17     ROLE OF THE SELECT PROGRAM ADMINISTRATOR

COMPANY agrees to appoint a representative to serve as COMPANY's Volume
Licensing Program Administrator. COMPANY agrees to promptly make that
individual, as well as COMPANY's other sales employees, available for training
on the Microsoft Volume Licensing Programs and on the licensing policies related
to such Select Software Products at such times and places as MICROSOFT
reasonably requests. The individual appointed by COMPANY as its Select Program
Administrator shall be an individual generally knowledgeable of Select Software
Products and of MICROSOFT's Volume Licensing Programs. The Select Program
Administrator shall be responsible for administering all of COMPANY's Volume
Licensing Customer billings and transactions, contract compliance, general
administration of COMPANY's Volume Licensing Customers, disseminating all
program information as necessary within COMPANY's organization, and for working
with the Microsoft Select Account Manager (or local MICROSOFT Contact) in regard
to any problems relevant to a given Volume Licensing. COMPANY's Select Program
Administrator shall be:
                                   Tonya Gonzales
                                   Software Spectrum, Inc
                                   2140 Merritt Drive
                                   Garland, TX 75041
                                   (972) 864-5336

COMPANY shall provide MICROSOFT with at least ten (10) days advance written
notice of any change in the individual serving as its Select Program
Administrator.

         5.18     ENROLLMENT OF NEW VOLUME LICENSING CUSTOMERS

COMPANY's solicitation of new Volume Licensing Customers shall be on such terms
and conditions as MICROSOFT specifies from time to time. MICROSOFT reserves the
right to accept or reject in its sole discretion any proposed customer.

         5.19     COMPANY'S REPRESENTATIONS AND WARRANTIES

COMPANY hereby represents and warrants that COMPANY shall:

                  (a) Have email availability, Internet access, and an active
VLOR account as is necessary to perform COMPANY's obligations pursuant to this
Agreement;

                  (b) Use its best efforts to service and support its Volume
Licensing Customers and will promptly inform the appropriate Microsoft Volume
Licensing contact of any difficulties it encounters in servicing its Volume
Licensing Customers;

                  (c) Not alter in any way or form the Select Software Products,
their packaging, or any License Confirmation;

                                                                          Page 7

MSLI, GP
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   8

                  (d) Deliver the Documentation Components, Select CDs
containing the Select Software Products and other program materials and
information, and Welcome Kits only to the Volume Licensing Customer MICROSOFT
identifies on the outside of the Welcome Kit; and

                  (e) Promptly inform MICROSOFT of any known or suspected
violations by a Volume Licensing Customer of the terms and conditions of the
Customer Agreements and Enrollment Agreements.

         5.20     COMPANY TERMINATION OF ENROLLMENT AGREEMENT/FORM

At anytime during the Term, COMPANY shall be able to terminate its rights and
obligations related to any Enrollment Agreement currently administered by
COMPANY. In order for such termination to be effective, COMPANY must notify
MICROSOFT and the affected Volume Licensing Customer in writing of its desire to
terminate its rights and obligations. Such notification shall include the Volume
Licensing Customer's name and current contact information, the Enrollment
Agreement Number, and date of execution. All notification shall be sent via a
courier service able to track package delivery. COMPANY's rights and obligations
shall terminate thirty (30) calendar days from the date of the required notice.

         5.21     RELATIONSHIPS WITH GOVERNMENT ENTITIES

COMPANY may receive orders for License Confirmations for Select Software
Products from agencies of the United States government, state governments of the
United States of America and their political subdivisions under provided that
COMPANY enters into one or more Government Agreements, the form of which has
been approved in advance by MICROSOFT. COMPANY is authorized to enter into the
Government Agreements and provide the services set forth in such agreements.

6.       MICROSOFT OBLIGATIONS

         6.1      ASSISTANCE WITH REPORTING

Upon COMPANY'S written request, MICROSOFT shall use reasonable efforts to assist
COMPANY in data reporting, and will work with COMPANY's Information Management
department to facilitate the data reporting process.

         6.2      NO WARRANTIES FOR PRODUCT NOT MANUFACTURED BY MICROSOFT

MICROSOFT makes no warranties as to items distributed under a third party name,
copyright, trademark or tradename which may be included within the package of a
Select Software Product delivered on any CD as provided hereunder.

         6.3       REPORTING/ELECTRONIC DATA INTERCHANGE

COMPANY shall provide weekly sales and inventory reporting, in such format as
MICROSOFT shall instruct, in a timely and accurate manner during the Term. Such
reporting shall be submitted to MICROSOFT in accordance with the Electronic Data
Interchange (EDI) Guidelines.

                                                                          Page 8

MSLI, GP
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   9

         6.4      RECORDS AND AUDITS

During the duration of any Microsoft audit rights set forth in this section,
COMPANY agrees to keep all proper records and books of account relating to
performance of its obligations under this Agreement. During the Term and for a
period of two (2) years following its termination or expiration, MICROSOFT or
its designated representative, at its own cost, may audit the applicable books,
records and operations of COMPANY as is reasonable to verify COMPANY's
compliance with the terms of this Agreement. COMPANY shall promptly correct any
errors and omissions disclosed by such audit. Any audit will be conducted during
COMPANY's normal business hours in such a manner as not to unreasonably
interfere with COMPANY's normal business activities. If any complete financial
audit uncovers material discrepancies, COMPANY shall bear the out of pocket
costs for the audit. For purposes of this Section, "material discrepancies"
shall mean a discrepancy of five hundred thousand U.S. dollars (US$500,000) or
more in monthly revenue or sales reporting. Additionally, MS or its designated
representative, at its own cost, may audit any portion of COMPANY's books,
records, and operations as is reasonable to verify COMPANY's compliance with the
specific terms, policies and procedures of any addenda to this agreement.

7.       COMPANY AND MICROSOFT OBLIGATIONS

         7.1      DELIVERY OF SELECT CDs.

Within fifteen (15) calendar days of the full execution of any Enrollment
Agreement or MICROSOFT's approval of a given Enrollment Agreement, MICROSOFT
agrees to deliver to COMPANY a Select CD along with any other applicable
materials (the "Welcome Kit"). MICROSOFT will deliver the Welcome Kit to COMPANY
in a custom package specifically marked with the name of the appropriate Volume
Licensing Customer, the Volume Licensing Customer's Enrollment Agreement Number
and any special conditions relevant to the named Volume Licensing Customer.
COMPANY must deliver the Welcome Kit to its Volume Licensing Customer in order
for such customers to reproduce and run the Select Software Products according
to the Volume Licensing Customers' Agreement. From time to time, during the
Term, MICROSOFT will provide COMPANY with additional Select CDs containing
upgraded copies of the Select Software Products covered by a Volume Licensing
Customer's Enrollment Agreement. COMPANY agrees to immediately deliver all CDs
and any additional MICROSOFT supplied program information and materials to the
named Volume Licensing Customer.

         7.2      RESERVATION OF RIGHTS

MICROSOFT expressly reserves the right at any time during the Term to terminate
any Volume Licensing Customer's status as a Volume Licensing Customer in the
event such customer fails to comply with the terms of the Customer Agreement.
MICROSOFT agrees to promptly notify COMPANY of the termination of any Volume
Licensing Customer to whom COMPANY collects orders for License Confirmations and
payments for Select Software Products. Following such a notice, COMPANY shall
immediately cease collecting orders for License Confirmations, delivery of
Select CDs and any additional program information and materials to the
terminated Volume Licensing Customer. Termination shall not, however, affect the
Volume Licensing Customer's obligation to file the next required order/report
and MICROSOFT's right to invoice COMPANY in regard to such order. If MICROSOFT
terminates a given Volume Licensing Customer, COMPANY shall not have any claim
against MICROSOFT for damages or lost profits resulting from such termination.
COMPANY shall, however, be entitled to invoice the Volume Licensing Customer for
the License Confirmations that the Volume Licensing Customer ordered in its
final order.

                                                                          Page 9

MSLI, GP
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   10

         7.3      ESSENTIAL ELEMENT

Both COMPANY and MICROSOFT acknowledge that this Agreement is essential to any
agreement it enters into with a Volume Licensing Customer. Except as is
specifically provided in Section 4.3 related to COMPANY's right to collect any
outstanding payment following termination of this Agreement, COMPANY's rights to
collect orders and payments for License Confirmations, and purchase and deliver
Welcome Kits, Select CDs and/or any additional program information and materials
are conditional upon this Agreement being in full force and effect. COMPANY
acknowledges further that, if and when it is the subject of a bankruptcy filing
(under any Chapter of 11 United States Code Section 101 et seq. including any
future amendments), then assumption of any contract with a Volume Licensing
Customer is conditional upon the assumption of this Agreement.

         7.4      PRODUCT WARRANTY; LIMITATION OF LIABILITY

                  (a) MICROSOFT warrants its Select Software Product to End
Users as defined in the written limited warranty document accompanying each
product. All replacement Select Software Product is delivered subject to the
terms of the MICROSOFT limited product warranty. THE ABOVE LIMITED WARRANTIES
ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, OR STATUTORY, INCLUDING
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE,
TITLE, AND NON-INFRINGEMENT OR ANY OTHER OBLIGATIONS OR LIABILITIES ON
MICROSOFT'S PART.

                  (b) MICROSOFT SHALL NOT BE LIABLE FOR ANY INDIRECT,
CONSEQUENTIAL, OR INCIDENTAL DAMAGES (INCLUDING DAMAGES FOR LOSS OF BUSINESS
PROFITS, BUSINESS INTERRUPTION, LOSS OF BUSINESS INFORMATION, AND THE LIKE)
ARISING OUT OF THE USE OR INABILITY TO USE ANY SELECT SOFTWARE PRODUCT EVEN IF
MICROSOFT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

                  (c) IN ANY CASE, THE LIABILITY OF MICROSOFT (i) UNDER ANY
PROVISION OF THIS AGREEMENT; (ii) FOR ANY DAMAGES CAUSED BY A PROGRAM DEFECT OR
FAILURE IN ANY SELECT SOFTWARE PRODUCT OR (iii) ARISING FROM A COURT OF PROPER
JURISDICTION HOLDING ANY OF THE ABOVE WARRANTIES OR DISCLAIMERS OF WARRANTIES
INADEQUATE OR INVALID SHALL BE LIMITED TO THE AMOUNT ACTUALLY PAID BY COMPANY TO
MICROSOFT UNDER THIS AGREEMENT. MICROSOFT's LIMITATION OF LIABILITY IS
CUMULATIVE WITH ALL OF MICROSOFT's EXPENDITURES BEING AGGREGATED TO DETERMINE
SATISFACTION OF THE LIMIT. THE EXISTENCE OF CLAIMS OR SUITS AGAINST MORE THAN
ONE SELECT SOFTWARE PRODUCT DISTRIBUTED UNDER THIS AGREEMENT WILL NOT ENLARGE OR
EXTEND THE LIMIT. COMPANY RELEASES MICROSOFT FROM ALL OBLIGATIONS, LIABILITY,
CLAIMS OR DEMANDS IN EXCESS OF THE LIMITATION.

         7.5      SEMESTER PROGRAMS -

Each Semester, MICROSOFT may allow COMPANY to participate in programs which
provide the opportunity to earn marketing funds and rebates. COMPANY's
participation in such programs shall be governed by COMPANY'S then current
Microsoft Rebate and Marketing Fund Agreement and Microsoft's Marketing Fund
Guidelines or the Microsoft Rebate Program Guidelines, respectively, as such may
be promulgated and modified by MICROSOFT, in its sole discretion, from time to
time.

                                                                         Page 10

MSLI, GP
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   11

8.       DEFENSE OBLIGATIONS

         8.1      BY MICROSOFT

                  (a)      DUTY TO DEFEND

                           (i) MICROSOFT agrees to defend COMPANY against, and
pay the amount of any adverse final judgment (or settlement to which MICROSOFT
consents) resulting from any Infringement Claims; provided that COMPANY promptly
notifies MICROSOFT in writing of the Infringement Claim, specifies the nature of
such claim and the relief sought, and tenders the entire defense of the
Infringement Claim to MICROSOFT. COMPANY shall provide reasonable assistance in
the defense of all Infringement Claims.

                           (ii) MICROSOFT additionally agrees to defend COMPANY
against, and pay the amount of any adverse final judgment (or settlement to
which MICROSOFT consents) resulting from any Patent Claims; provided that
COMPANY promptly notifies MICROSOFT in writing of the Patent Claim, specifies
the nature of such claim and the relief sought and MICROSOFT accepts the defense
of the Patent Claim. Within thirty (30) calendar days of MICROSOFT's receipt of
COMPANY's notice, MICROSOFT shall notify COMPANY in writing of MICROSOFT's
acceptance or rejection of the defense of the Patent Claim. If MICROSOFT accepts
defense of the Patent Claim, COMPANY shall tender the entire defense of such
claim to MICROSOFT. MICROSOFT's acceptance or rejection of a Patent Claim shall
be based on MICROSOFT's discretion which shall be reasonable. COMPANY shall
provide reasonable assistance in the defense of all Patent Claims.

                  (b)      EXCEPTIONS TO DUTY

MICROSOFT shall have no liability for any claim, including any intellectual
property infringement claim (including any Infringement Claim or Patent Claim)
based on COMPANY's use of any Mark after MICROSOFT's notice that COMPANY should
cease use of such Mark due to such a claim. All claims described in this Section
8.1(b) shall be deemed Company Claims for which COMPANY shall have those
obligations set forth in Section 8.2 below.

         8.2      BY COMPANY

COMPANY shall defend MICROSOFT, its subsidiaries, and affiliated companies from
and against any claims, losses, and damages relating to any Company Claim.
COMPANY's obligation to defend MICROSOFT shall only apply provided that COMPANY
is immediately notified in writing of any such Company Claim. At MICROSOFT's
sole option, MICROSOFT may participate in the selection of counsel, defense and
settlement of any Company Claims covered by this Section 8.2, or may tender sole
control over the defense or settlement of the Company Claim to COMPANY. If
MICROSOFT chooses to participate in the selection of counsel, defense and
settlement of such claims, the parties shall work together in good faith to
reach decisions which are mutually acceptable to both parties. MICROSOFT shall
provide reasonable assistance in the defense of all Company Claims.

9.       INSURANCE

Throughout the Term and for 30 days thereafter, each party shall maintain, at
its sole expense, Commercial General Liability Insurance written on an
Occurrence Form, with policy limits of not less than Three Million Dollars
($3,000,000) combined single limit each occurrence for personal injury
(including bodily injury and death) and property damage which may arise from or
in connection with the performance of each party's obligations hereunder or out
of any negligent act or omission of the applicable party, its officers,
directors, agents, or employees. Each party shall provide proof of its
compliance with this section upon the other party's request. Notwithstanding the
foregoing, MICROSOFT shall have the right to self-insure.

                                                                         Page 11

MSLI, GP
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   12

10.      EXPORT RESTRICTIONS

COMPANY agrees that COMPANY and, as applicable, its Resellers will not export or
re-export Product to any country, person, or entity subject to U.S. export
restrictions. COMPANY specifically agrees not to export or re-export Product (i)
to any country to which the U.S. embargoes or restricts the export of goods or
services, which as of March 31, 1999, includes, but is not necessarily limited
to, Cuba, Iran, Iraq, Libya, North Korea, Sudan, Syria, and the Federal Republic
of Yugoslavia (Serbia and Montenegro) or to any national of any such country who
COMPANY knows intends to transmit or transport the products back to such
country; (ii) to any person or entity that COMPANY or, as applicable, its
Resellers (if applicable) know will utilize Select Software Product in the
design, development or production of nuclear, chemical or biological weapons; or
(iii) to any person or entity that has been prohibited from participating in
U.S. export transactions by any federal agency of the U.S. government.

11.      DELAY IN PERFORMANCE

If as a result of fire, casualty, act of God, riot, war, labor dispute,
government regulation, or decree of any court or any other event beyond the
control of COMPANY or MICROSOFT, either of the parties shall be unable to
perform its obligations hereunder, such inability shall not constitute a breach
of this Agreement, and such obligations shall be performed as soon as the cause
of the inability ceases or is removed. Strikes or other labor difficulties which
are not capable of being terminated on terms acceptable to the party affected
shall not be considered circumstances within the control of such party.

12.      NO WAIVER

None of the provisions of this Agreement shall be deemed to have been waived by
any act or acquiescence on the part of MICROSOFT, COMPANY or their respective
agents or employees, but may be waived only by an instrument in writing signed
by an authorized officer of the waiving party. No waiver of any provision of
this Agreement shall constitute a waiver of any other provision or of the same
provision on another occasion.

13.      NO PARTNERSHIP OR AGENCY

Nothing in this Agreement shall be deemed to create or constitute a partnership,
joint venture, franchise, agency, or contract of employment between MICROSOFT
and COMPANY.

14.      ATTORNEY'S FEES; GOVERNING LAW

In the event an action is commenced to enforce a party's rights under this
Agreement, the prevailing party (as determined by the court) in such action
shall be entitled to recover its reasonable costs and attorneys' fees. This
Agreement shall be governed by and interpreted in accordance with the laws of
the State of Washington. COMPANY consents to jurisdiction and venue in King
County, Washington.

15.      ENTIRE AGREEMENT/MODIFICATION

This Agreement and all attached Schedules constitute the entire agreement
between MICROSOFT and COMPANY, and supersedes and terminates any and all prior
agreements or contracts, written or oral, entered into between the parties
relating to the subject matter hereof. Any representations, promises, or
conditions in connection therewith not in writing signed by both parties shall
not be binding upon either party. This Agreement shall control any provisions in
COMPANY's purchase orders which are inconsistent with this Agreement. Any
changes or modifications to this Agreement must be made in writing and with the
mutual agreement of the parties.

MSLI, GP                                                                 Page 12
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   13

16.      U.S. GOVERNMENT RIGHTS

All Products provided to the U.S. Government pursuant to solicitations issued on
or after December 1, 1995, are provided with commercial license rights and
restrictions described elsewhere herein. All Products provided to the U.S.
Government pursuant to solicitations issued prior to December 1, 1995 are
provided with RESTRICTED RIGHTS as provided for in FAR, 48 C.F.R. 52.227-14
(June 1987) or DFAR, 48 CFR 252.227-7013 as applicable. COMPANY shall be
responsible for ensuring that all Products are marked with the "Rights" legend.
Manufacturer is Microsoft Corporation, One Microsoft Way, Redmond, WA
98052-6399.

17.      CONFIDENTIALITY

         17.1 COMPANY expressly undertakes to retain in confidence the terms and
Agreement and any applicable Addenda and all information and know-how
transmitted to it by make no use of such information and know-how except under
the terms and during the existence of this COMPANY shall guarantee and ensure
its employees' compliance with this paragraph. COMPANY's under this paragraph
shall survive any termination of this Agreement and shall extend to the earlier
of the information is public domain or five (5) years following the termination
of this Agreement. This not prohibit the parties from disclosing such
information as is specifically required by any authorities. Notwithstanding the
foregoing, COMPANY may disclose confidential information in any judicial or
other governmental order or request, provided that COMPANY shall MICROSOFT in
writing upon its receipt of such order or request and shall assist MICROSOFT as
is seeking any protective order or its equivalent or in limiting the scope of
disclosure of any Confidential Information.

         17.2 During the Term and for three (3) years thereafter, COMPANY
expressly undertakes confidence the terms and conditions of all executed
Customer Agreements and/or Enrollment Agreement CUSTOMER disclose the terms and
conditions of any Customer Agreement or Enrollment Agreement shall immediately
terminate. CUSTOMER shall guarantee and ensure its employees' this paragraph.

         17.3 During the Term and for three (3) years thereafter, COMPANY
expressly undertakes confidence the terms and conditions of any and all rebate
and marketing fund programs made COMPANY. Should CUSTOMER disclose the terms and
conditions of any rebate or marketing fund Agreement shall immediately
terminate. CUSTOMER shall guarantee and ensure its employees' this paragraph.

18.      NO ASSIGNMENT

This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective and assigns, provided that COMPANY may not assign
its rights or obligations under this Agreement without the prior written consent
of MICROSOFT. MICROSOFT may assign this Agreement or thereof, to any MICROSOFT
related company or business entity.

MSLI, GP                                                                 Page 13
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   14

19.      NOTICES

Except as otherwise provided herein, all notices required or contemplated by
this Agreement shall be in writing, delivered by U.S. certified mail (return
receipt requested), or via overnight courier (e.g., Federal Express, or DHL),
and addressed as follows:
<TABLE>
         <S>                       <C>
          If to MICROSOFT:         MSLI, GP
                                   6100 Neil Road, Suite 210
                                   Reno, NV 89511-1137

                                   Attn.: LAR Operations

          With cc to:              Law and Corporate Affairs (Retail) and Channel Strategy
                                   Microsoft Corporation
                                   One Microsoft Way
                                   Redmond, WA 98052-6399

          If to COMPANY:
                                   Software Spectrum, Inc
                                   2140 Merritt Drive
                                   Garland, TX 75041
                                   Attn: Robert D. Graham
</TABLE>

Such notices shall be deemed given three (3) business days after being deposited
in the United States mail or one business day after being delivered with an
overnight carrier or by electronic mail.

20.      SEVERABILITY

In the event that any provision of this Agreement is found invalid or
unenforceable pursuant to judicial decree or decision, the remainder of this
Agreement shall remain valid and enforceable according to its terms. The parties
intend that the provisions of this Agreement be enforced to the fullest extent
permitted by applicable law. Accordingly, the parties agree that if any
provisions are deemed not enforceable, they shall be deemed modified to the
extent necessary to make them enforceable.

21.      SURVIVAL

SECTIONS 2, 4.3, 5.7(c), 5.12, 5.13, 5.19, 6.4, 7.4, 8, 9, 10, 14, 17, 19 and 21
shall survive any termination of this Agreement.

IN WITNESS WHEREOF, the parties have signed this Agreement on the dates
indicated below. This Agreement is not binding until executed by MICROSOFT.

MSLI, GP ("MICROSOFT")                      SOFTWARE SPECTRUM, INC.
                                            ("COMPANY")

By:                                         By: /s/ Robert D. Graham
   ---------------------------------           --------------------------------
                                            Robert D. Graham
-----------------------------------         -----------------------------------
Name (please print)                         Name (please print)
                                            Vice President
-----------------------------------         -----------------------------------
Title, An Authorized Representative         Title, An Authorized Representative
                                                  1/31/00
-----------------------------------         -----------------------------------
Date                                        Date

MSLI, GP                                                                 Page 14
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   15

                                   SCHEDULE A

                                  DEFINED TERMS

          "COMPANY CLAIM" means any default, breach or alleged breach of
COMPANY's obligations, promises, representations, warranties or agreements
relating to the Agreement.

          "CUSTOMER AGREEMENTS" mean the applicable License Agreement, License
Confirmation or Product Use Rights, Master Agreement, Enterprise Agreement,
Enrollment Agreement, Government Agreement and any Program Description.

          "COMPANY ENROLLMENT AGREEMENT" means any Enrollment Agreement under
which COMPANY is designated as the Large Account Reseller.

          "CP WEB" means the secure website which company may access to obtain
the current Select Software Product Price List.

          "DISTRIBUTOR" means any business entity which has entered into a
Microsoft Channel Agreement which includes a Distributor Addendum to the
Microsoft Channel Agreement with Microsoft Corporation.

          "DOCUMENTATION COMPONENTS" means the supplemental disk sets and Select
Software Product documentation available from Microsoft World Wide Fulfillment
or such other fulfillment source that MICROSOFT may designate.

          "ELECTRONIC DATA INTERCHANGE" or "EDI" means the ANSI-ASCII X.12
standard, adopted by CompTIA, by which COMPANY shall submit sales reporting to
MICROSOFT.

          "END USER" shall mean the ultimate consumer of any Microsoft product.

          "ENROLLMENT AGREEMENT" means the Microsoft Select Master Agreement
(any version), the Microsoft Select Enterprise Agreement, the Microsoft Select
Enrollment Agreement the Microsoft Educational Select Enrollment Agreement, the
Outsourcer Agreement, any Enrollment Forms relevant to any of the previous named
agreements, and any successor agreement even if identified by a different name,
which is entered into by a Volume Licensing Customer and MICROSOFT.

          "ENTERPRISE AGREEMENT" means the Microsoft Select Enterprise Agreement
and any successor agreement even if identified by a different name, in such form
as MICROSOFT will determine.

          "AGREEMENT NUMBER" means the number MICROSOFT assigns to any fully
signed Enrollment Agreement.

         "ENTERPRISE CUSTOMER" means any business entity or company having a
valid Enterprise Enrollment Agreement or a Microsoft Select Enterprise Agreement
or such successor agreement even if identified by a different name.

          "FINANCIAL STATEMENT" means a Balance Sheet as of the last day of the
calendar quarter, and an Income Statement and Statement of Cash Flows for the
quarter and year-to-date, prepared in accordance with Generally Accepted
Accounting Principles ("GAAP"). Any deviation from GAAP in the quarterly
statements shall be clearly noted. These statements must be signed by an officer
of COMPANY as being representative of the books and accounts of COMPANY.

          "GOVERNMENT AGREEMENTS" means the Microsoft Government Select Master
Agreement, the Microsoft Government Select Enrollment Agreement, the Microsoft
Government Enterprise Select Agreement and any such successor agreements which
may be known by different names. All such Government Agreements will be entered
into between COMPANY and the applicable Federal, state or local government
entities.

MSLI, GP                                                                Page A-1
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   16

          "INFRINGEMENT CLAIM" means any allegation against the COMPANY that the
Select Software Products or Marks infringes any United States copyright or
trademark of a third party.

          "LARGE ACCOUNT RESELLER" means any reseller that MICROSOFT has
authorized to collect and receive orders for License Confirmations and payments
for Select Software Products from Volume Licensing Customers.

          "LARGE ACCOUNT RESELLER AFFILIATE" means any entity which owns,
controls, is owned or controlled by, or under common ownership or control with
the Large Account Reseller. For the purposes of this Agreement, an entity is
"controlled" by another if that other company or legal entity, either directly
or through its control of another company or legal entity: (i) holds the
majority of voting rights in it; (ii) is a member of it and has the right to
appoint or remove a majority of its board of directors; or (iii) is a member of
it and controls alone or under an agreement with other shareholders or members,
the majority of the voting rights in it.

          "LICENSE AGREEMENT" means the license agreement attached to the 3.x
Enrollment Agreement.

          "LICENSE CONFIRMATIONS" means the authorization which MICROSOFT
provides to the Volume Licensing Customer which confirms the Volume Licensing
Customer's right to run Select Software Product.

          "MARKS" means the Trademarks (defined below) or any and all copyrights
MICROSOFT may own.

          "MASTER AGREEMENT" means the Microsoft Select Master Agreement, the
Microsoft Educational Select Master Agreement, the Microsoft Enterprise Select
Agreement, and any successor agreement even if identified by a different name,
which is signed by MICROSOFT and a Volume Licensing Customer.

          "OUTSOURCER AGREEMENT" means the Microsoft Select Outsourcer
Enrollment Agreement which authorizes a third party outsourcer to receive Select
Software Products under the terms of a specific Volume Licensing Customer's
Master Agreement for the sole purpose of leasing, sublicensing, or otherwise
making Select Software Products available to such Volume Licensing Customer.

          "OUTSOURCER CUSTOMER" means the business entity which has signed an
Outsourcer Agreement.

          "PATENT CLAIM" means any third party claim or allegation against the
COMPANY that the Select Software Products infringe any United States patent.

          "PRODUCT USE RIGHTS" means the statement attached to the version 4.x
  Microsoft Select Master Agreement as Addendum A, or any subsequent version
  thereof released and provided to the entity that signs any Microsoft Select
  Master Agreement by or on behalf of MICROSOFT that identifies special terms
  and conditions under which us of each particular Select Software Product is
  subject.

          "SELECT CD" means the compact disk which contains copies of the Select
Software Product which Volume Licensing Customers use to install copies of the
Select Software Product they choose to license.

          "SELECT MASTER AGREEMENTS" means the Microsoft Select Master Agreement
  and the Microsoft Educational Select Master Agreement, and any successor
  agreement even if identified by a different name, which is signed by MICROSOFT
  and a Volume Licensing Customer.

          "SELECT SOFTWARE PRODUCT" means the Microsoft software products which
  MICROSOFT will designate from time to time, that may be reproduced and run by
  Volume Licensing Customers under any form of Enrollment Agreement, or
  Government Agreement, excluding Documentation Components.

          "SEMESTER" means the six month periods which run from July 1 through
  December 31, and from January 1 through June 30. For purposes of this
  Agreement, there will be only one Semester during the Term.

          "TERM" means the term of this Agreement which is specified in Section
4.1 of this Agreement.

MSLI, GP                                                                Page A-2
Large Account Reseller
Agreement                                                              MICROSOFT
<PAGE>   17

         "TERRITORY" means the geographic boundaries of Canada and the United
States of America, excluding all United States territories, possessions, or
protectorates.

          "TRADEMARKS" means the trademark and trade name "Microsoft", and all
trademarks and tradenames derived therefrom, and the trademarks used in
association with all Select Software Products or which are set out at
http://www.Microsoft.com/trademarks (or such other successor site), as may be
amended from time to time by MICROSOFT.

          "UPGRADE ADVANTAGE" means the Select program offering, which allows an
enrolling Volume Licensing Customer, for a fee, to have the ability to run the
most current version of any Select Software Product which the Volume Licensing
Customer has previously licensed under its Enrollment Agreement.

          "VOLUME LICENSING PROGRAMS" means the Microsoft's Select and
Enterprise Licensing programs, and any other successor volume licensing programs
even if they are known by a different name.

          "VOLUME LICENSING CUSTOMER" means any business entity, identifiable
division, business unit or office location which has the ability to run Select
Software Products under the terms of any form of Enrollment Agreement, or
Government Agreement.

          "VOLUME LICENSING PROGRAM ADMINISTRATOR" means the individual
appointed by COMPANY to act as COMPANY's primary contact with respect to the
Microsoft Volume Licensing Programs.

          "VLC AFFILIATES" means the affiliate business entities identified in
each Volume Licensing Customer's Enrollment Agreement.

                                                                        Page A-3

MSLI, GP                                                               MICROSOFT
Large Account Reseller
Agreement

<PAGE>   18

                             AMENDMENT NO. 1 TO THE
                                    MICROSOFT
                             LARGE ACCOUNT RESELLER
                                   AGREEMENT

This Amendment No. 1 ("Amendment"), entered into as of this 1st day of July,
2000, amends that certain Microsoft Large Account Reseller Agreement
("Agreement") between MSLI, G.P. ("MICROSOFT") having its principal place of
business at 6100 Neil Road, Suite 210, Reno, NV 89511-1137 and SOFTWARE
SPECTRUM, INC. ("COMPANY") having its principal place of business at 2140
MERRITT DRIVE, GARLAND, TX 75041. The Agreement is hereby amended as follows:

1.       SECTION 4.1, TERM, IS REPLACED IN ITS ENTIRETY WITH THE FOLLOWING:

         "4.1     TERM

This Agreement shall take effect on the Effective Date and shall continue until
June 30, 2001."

2.       SECTION 5.7(b), PAYMENT TERMS, THIRD PARAGRAPH IS REPLACED IN ITS
         ENTIRETY WITH THE FOLLOWING:

"Payments shall be remitted to the following account:

             MSLI Western Region Collections #842467
             Account #375 120 5782
             ABA# 1110-0001-2
             Bank of America

Or to a third party designated by MICROSOFT in writing. All payments must be
sent to Bank of America at the address indicated above using the 820 Remittance
EDI transaction set or other form of ACH payment with electronic remittance
detail attached. Remittance detail must be received by Bank of America by
10:00AM Central time/8:00AM Pacific time to ensure same-day credit to COMPANY's
account. COMPANY may not withhold payment or take deductions prior to MICROSOFT
issuing credit for rebates, price adjustments, billing errors or any other
credit memo issued by MICROSOFT."

3.       SECTION 5.19(a) IS REPLACED IN ITS ENTIRETY WITH THE FOLLOWING:

         "(c) Have email availability, Internet access, and an active CPWeb
account as is necessary to perform COMPANY's obligations pursuant to this
Agreement;"

IN WITNESS WHEREOF, the parties have signed this amendment on the date
indicated below. This Amendment is hereby made part of the Agreement. All terms
and conditions of the Agreement not modified herein shall remain in full force
and effect. This Amendment is not binding until executed by MSFT.

MSLI, GP ("MICROSOFT")                      SOFTWARE SPECTRUM, INC.
                                            ("COMPANY")

By:                                         By: /s/ ROBERT D. GRAHAM
   ------------------------------              ------------------------------
                                            Robert D. Graham   Vice President
---------------------------------           ---------------------------------
Name (please print)         Title           Name (please print)         Title
                                            July 19,2000
---------------------------------           ---------------------------------
Date                                        Date

                                                                       MICROSOFT

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