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PB&T agreed to pay petitioner 45 cents for each cardholder
transaction and $3 for each card membership and annual fee paid
to PB&T. The 1987 agreement did not say whether the payments
were intended to be royalties or business income.
PB&T agreed not to assess merchant discount charges or
processing fees on purchases from petitioner by alumni and on
gifts made to the MSU Annual Fund by cardholders if the
transaction was charged to the affinity credit card. Petitioner
received thousands of dollars of contributions through this
arrangement.
PB&T agreed to give petitioner space for four lines with 60
characters up to six times a year on PB&T's monthly statements to
cardholders without cost to petitioner or cardholders to promote
alumni activities.
The 1987 agreement said that petitioner was not a partner of
or joint venturer with PB&T and that petitioner did not agree to
bear any loss PB&T might suffer in the affinity credit card
program.
2. Endorsement and Promotional Materials
Petitioner agreed to state in a letter or other message that
PB&T wrote and sent, and bearing petitioner's executive
director's name or a facsimile of his signature, that PB&T was
the exclusive provider of the affinity credit cards. PB&T agreed
to prepare and pay for all endorsement and marketing material and
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Last modified: May 25, 2011