Terwilliger [J. Algebraic Combin. 1 (1992), considered the -algebra generated by a given Bose Mesner algebra M and the associated dual Bose Mesner algebra M * . This algebra is now known as the Terwilliger algebra and is usually denoted by T . Terwilliger showed that each vanishing intersection number and Krein parameter of M gives rise to a relation on certain generators of T . These relations are often called the triple product relations. They determine much of the structure of T , though not all of it in general. To illuminate the role these relations play, the current author introduced [J. Algebra 233 (2000), 213-252] a generalization of T . To go from T to , we replace M and M * with a pair of dual character algebras C and C * . The dimensions of C and C * are equal; let d + 1 denote this common dimension. Intuitively, is the associative -algebra with identity generated by C and C * subject to the analogues of Terwilliger's triple product relations. is infinite-dimensional and noncommutative in general. In this paper we study and its finite-dimensional modules when d = 2 and has no "extra" vanishing intersection numbers or dual intersection numbers. In this case we show is -algebra isomorphic to M 3 ⊕ , where M 3 denotes the -algebra consisting of all 3-by-3 matrices with entries in and denotes the associative -algebra with identity generated by the symbols e and f subject to the relations e 2 = e and f 2 = f . We find a basis for and we determine the center of . We classify the finite-dimensional indecomposable -modules up to isomorphism. There are four such -modules in every odd dimension, and in every even dimension these modules are parameterized by a single complex number. We also classify the finite-dimensional irreducible -modules up to isomorphism. Using our results concerning , we find a basis for , we describe the center of , and we classify both the finite-dimensional indecomposable and the finite-dimensional irreducible -modules up to isomorphism. 2002 Elsevier Science (USA)