Oregon State University Alumni Association, Inc. - Page 3

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          he had received from the United States National Bank of Oregon              
          (USNB) and another financial institution.  Wirth and Super wanted           
          their organizations to develop an affinity credit card program.             
               Petitioner and the AAUO formed a committee to solicit                  
          proposals from several banks and to select a plan.  Petitioner              
          and the AAUO formed the committee to increase their bargaining              
          power and to avoid duplication of effort.  The committee was                
          headed by Wirth and Super.  Its members were volunteers from both           
          organizations.  After reviewing 8 to 10 plans, the committee                
          chose USNB's plan.  After negotiations, the parties signed an               
          Affinity Credit Card Agreement1 (the Agreement) on June 23, 1987.           
               On September 30, 1987, USNB held a press conference and                
          issued a news release announcing the affinity credit card                   
          program.  One of petitioner's representatives gave a brief speech           
          at the press conference.  Petitioner did not otherwise inform the           
          news media of the credit card program.                                      
               USNB entered into the Agreement primarily to make money.               
          Its objectives in signing the Agreement were to gain access to              
          petitioner's mailing list and to obtain petitioner's endorsement.           
          USNB believed that it would be easier to market credit cards                




               1 The Agreement was amended on Apr. 26, 1991.  The parties             
          changed the word "fees" to "royalties" in par. 4 of the                     
          Agreement.  Neither party contends that the amendment affects any           
          issue in dispute.                                                           




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