Mississippi State University Alumni, Inc. - Page 6

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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