WYNDHAM WORLDWIDE CORPORATION

Owners who participate in Club Wyndham Plus assign their use rights to a trust in exchange for the right to
reserve in the internal reservation system. The number of points that an owner receives as a result of the assignment
to the trust of the owner’s use rights, and the number of points required to take a particular vacation, is set forth on
a published schedule and varies depending on the resort location, length of stay, unit type and time of year
associated with the interests assigned to the trust or requested by the owner, as applicable. Participants in Club
Wyndham Plus may choose (subject to availability) the Wyndham Vacation Resorts resort properties, length of stay,
unit types and times of year, depending on the number of points to which they are entitled and the number of points
required to take the vacations of their preference. Participants in the program may redeem their points not only for
resort stays, but also for other travel and leisure products that may be offered from time to time. Owners of vacation
points are able to borrow vacation points from the next year for use in the current year. Wyndham Vacation Resorts
offers various programs that provide existing owners with the opportunity to “upgrade,” or acquire additional
vacation ownership interests to increase the number of points such owners can use in Club Wyndham Plus.
WorldMark, The Club and WorldMark South Pacific Club. The Clubs provide owners of vacation credits with
flexibility (subject to availability) as to resort location, length of stay, unit type and time of year. Depending on how
many vacation credits an owner has purchased, the owner may use the vacation credits for one or more vacations
annually. The number of vacation credits that are required for each day’s stay at a unit is listed on a published
schedule and varies depending upon the resort location, unit type, time of year and the day of the week. Owners
may also redeem their credits for other travel and leisure products that may be offered from time to time.
Owners of vacation credits are also able to purchase bonus time from the Clubs for use when space is available.
Bonus time gives owners the opportunity to use available resorts on short notice and at a reduced rate and to obtain
usage beyond owners’ allotments of vacation credits. In addition, WorldMark by Wyndham offers owners the
opportunity to “upgrade,” or acquire additional vacation credits to increase the number of credits such owners can
use in the Clubs.
Owners of vacation credits can make reservations through the Clubs, or may elect to join and exchange their
vacation ownership interests through Wyndham’s vacation exchange business, RCI, or other third-party international
exchange companies.
Property Management
Program, Property and Club Management. In exchange for management fees, Wyndham Vacation Resorts,
itself or through a Wyndham Vacation Resorts affiliate, manages Club Wyndham Plus, the majority of property
owners’ associations at resorts in which Wyndham Vacation Resorts develops, markets and sells vacation ownership
interests, and property owners’ associations at resorts developed by third parties. On behalf of Club Wyndham Plus,
Wyndham Vacation Resorts or its affiliate manages the reservation system for Club Wyndham Plus and provides
owner services and billing and collections services. The term of the trust agreement of Club Wyndham Plus runs
through December 31, 2025, and the term is automatically extended for successive ten year periods unless a majority
of the members of the program vote to terminate the trust agreement prior to the expiration of the term then in
effect. The term of the management agreement, under which Wyndham Vacation Resorts manages the Club
Wyndham Plus program, is for five years and is automatically renewed annually for successive terms of five years,
provided the trustee under the program does not serve notice of termination to Wyndham Vacation Resorts at the
end of any calendar year. On behalf of property owners’ associations, Wyndham Vacation Resorts or its affiliates
generally provide day-to-day management for vacation ownership resorts, including oversight of housekeeping
services, maintenance and refurbishment of the units, and provides certain accounting and administrative services to
property owners’ associations.
We receive fees for such property management services which are generally based upon total costs to operate
such resorts. Fees for property management services typically approximate 10% of budgeted operating expenses. We
incur certain reimbursable costs which principally relate to the payroll costs for management of the associations,
club and resort properties where we are the employer. Property management revenues were $405 million, $376 million,
and $346 million during 2010, 2009 and 2008, respectively. Property management revenue is comprised of
management fee revenue and reimbursable revenue. Management fee revenues were $183 million, $170 million and
$159 million during 2010, 2009, and 2008, respectively. Reimbursable revenues were $222 million, $206 million,
and $187 million respectively during 2010, 2009, and 2008. Reimbursable revenues are based upon cost with no
added margin and thus, have little or no impact on our operating income. The terms of the property management
agreements with the property owners’ associations at resorts in which Wyndham Vacation Resorts develops, markets
and sells vacation ownership interests vary; however, the vast majority of the agreements provide a mechanism for
automatic renewal upon expiration of the terms. At some established sites, the property owners’ associations have
entered into property management agreements with professional management companies other than Wyndham
Vacation Resorts or its affiliates.
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