Mississippi State University Alumni, Inc. - Page 8

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          D.   Performance Under the 1987 Agreement                                   
               1.   Establishing Affinity Credit Card Accounts                        
               PB&T processed applications, established and loaded accounts           
          on its computer system, produced credit cards, accepted and                 
          posted transactions, generated statements, and processed                    
          payments.  Petitioner did none of this work.                                
               2.   Endorsements, Solicitations, and Promotions                       
               PB&T drafted and sent letters to promote the affinity credit           
          cards to petitioner's members in March or April 1988.  In April             
          1989, PB&T drafted and sent letters endorsing the affinity credit           
          card to parents of MSU students.  That letter stated that                   
          petitioner offered the credit cards in cooperation with PB&T and            
          urged parents to apply for cards for their students.  Each letter           
          was printed on petitioner's letterhead and had a facsimile of               
          Grafton's signature.                                                        
               PB&T developed solicitation materials during the years in              
          issue.  Grafton reviewed these materials for accuracy, quality,             
          style, and consistency with petitioner's position.  It took him 3           
          to 5 minutes to review an endorsement letter prepared by PB&T.              
          He did not make changes to those letters.                                   
               At petitioner's suggestion, PB&T mailed promotional material           
          to MSU's faculty and staff.  On June 2, 1988, petitioner billed             
          PB&T $226.28 for 4,000 envelopes, $78.12 for 4,000 sheets of                
          stationery, and $93.72 for 3,124 address labels for faculty and             
          staff of MSU that petitioner provided to PB&T for this mailing.             




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