Fellow WorldMark Owners,

I wanted to take a few minutes of your time to inform you about the results of a special board meeting held Thursday, February 15, in response to the untimely resignation of Jack McConnell from our board.   

Some of you may be surprised to learn that WorldMark now has an annual operating budget of over $180 million and assets in excess of $800 million.  Jack's departure removed over 30 years of timeshare and hospitality business experience, many at the most senior positions, from the board.  We will miss his contributions to WorldMark operations, but clearly understand his decision and respect his wishes to resign at this time because of conflicting business opportunities.

The WorldMark Board discussed a wide range of issues associated with the replacement of such a senior executive and came to the conclusion that our primary objective must be a decision that best serves the long-term interests of the club. Therefore, with a great deal of pleasure, we're announcing our unanimous election of David Herrick, senior vice president of WorldMark by Wyndham, Hospitality Division, to fill this vacancy. Dave has also been in the timeshare and hospitality industry for 30 years and has been directly responsible for overseeing all aspects of WorldMark, The Club operations for almost nine years.  He has held the non-voting positions of vice president and chief financial officer on the board during this time and has proven himself to be an outstanding administrator in all aspects of management of your club. Dave and his team have consistently maintained a 95% satisfaction rating for WorldMark vacation experiences, the highest in our industry. Dave's appointment requires no learning curve and offers the best possible understanding of the club's model and relationship with the Wyndham senior executive team.

Dave's appointment brings a greatly overlooked benefit to the board—an ongoing voice in the day-to-day interface with the Wyndham executive group and the WorldMark Board of Directors. This access diminished upon my retirement as chief operating officer for Trendwest in 2005, yet that access was a key contributor to the club's success and is crucial to its future success as we transition fully to the Wyndham hospitality family.

There are many exciting initiatives planned for 2007. Some, such as a proposed bylaw change to increase the size of the board from five members to seven, will open the door for owners to create greater diversification on our board, without minimizing the existing expertise. To pass this bylaw change will require your direct participation either by voting or assigning your proxy to the board, so we may support the expanded board on your behalf.  There will be more details following in a separate announcement.

In the last couple of years another school of thought has surfaced from a small but vocal group of owners that seeks to disengage the developer from its management agreement and the sales and marketing contract. Obviously your board feels the unique marriage between the developer and our club is what has made WorldMark one of the most successful vacation clubs in the history of this industry. We will do everything possible to support this very successful business model for all WorldMark owners and to ensure that our club continues to grow in popular resort destinations and provide flexible vacation alternatives for years to come.

We all look forward to greater opportunities to more fully discuss these proposals via Destinations magazine, the WorldMark Web site, the Insider e-mail newsletter, and individual communications.

Best regards, Gene Hensley
President of the Board
WorldMark, The Club