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Case 1:18-cv-03309-PJM Document 1117-1 Filed 01/21/21 Page 1 of 49
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IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF MARYLAND 

SOUTHERN DIVISION

No: 18-cv-3309-PJM

In re SANCTUARY BELIZE LITIGATION

[PROPOSED] ORDER GOVERNING REDRESS

The Federal Trade Commission (“FTC” or “Commission”) moved the Court to enter the 

following Redress Administration Plan (“Plan”) governing the Receivership in this matter until 

further order of this Court. For good cause shown,

IT IS HEREBY ORDERED:

A. The FTC’s motion is GRANTED.

B. The Plan begins on the Effective Date, which is January 31, 2021 or when the 

Court enters this Order, whichever is later.

C. The Plan terminates on the Termination Date, which is January 31, 2023 unless 

the FTC consents to extend the Plan or the Court approves an extension.

D. This Court retains jurisdiction over the implementation of this Plan and any 

disputes arising out of or related to this Plan, both before and after the Termination Date. Any 

determination the Receiver makes pursuant to this Plan is subject to this Court’s review and 

approval in accordance with the review procedures this Plan provides.

E. Nothing herein alters any existing obligations under any other order issued in this 

matter, except as specified below.

F. All capitalized terms have the meanings contained in the “Definitions” Section at 

the beginning of this Plan.

I. DEFINITIONS

1. “Amount Paid” means: (1) the amount the Lot Purchaser actually paid to Subject 

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Sellers for an Eligible Lot including principal, interest, taxes, HOA fees, and other costs or

consideration that the Receiver reasonably determines constitute Assets the Lot Purchaser 

actually paid or otherwise Transferred to Subject Sellers for the Eligible Lot; (2) the amount the 

Lot Purchaser actually paid to a Prior Lot Purchaser for the Eligible Lot in the Receiver’s 

reasonable judgment considering any information the Lot Purchaser or Putative Lot Purchaser 

provides and excluding any transaction costs, other portions of the payment for the Eligible Lot 

reasonably attributable to improvements on the lot or consideration other than the physical land 

itself, or amounts due or arguably due from the Lot Purchaser to the Prior Lot Purchaser related 

to the Lot, but unpaid; or (3) for Eligible Prior Lot Purchasers, the Loss the Eligible Prior Lot 

Purchaser incurred.

2. “Asset” means any legal or equitable interest in, right to, or claim to, any 

property, wherever located and by whomever held, whether tangible, intangible, digital, or 

otherwise, including, but not limited to, rights, digital currencies, virtual currencies, digital 

tokens, and cryptocurrencies.

3. “Assignable Investment Claim” means any private claim arising under the law 

of any state or country against any Subject Seller that: (1) relates to the Subject Matter of this 

action; (2) involves the claim that the assignor or potential assignor received consideration or 

was promised consideration (the value of which depends or would depend on something other 

than the value of a specific, identified Eligible Lot or Lots [including, without limitation, equity 

or rights]); and (3) does not involve attempting to enforce a claim to any specific, identified 

Eligible Lot or Eligible Lots.

4. “Claim Application” means a package of information including: (i) information 

that the Receiver reasonably requires and that the Receiver may require the Putative Consumer 

and/or Consumer to submit on a form or forms it designs; (ii) purchase and sale contracts or 

equivalent evidence demonstrating the Consumer’s interest in an Eligible Lot; (iii) records 

establishing all payments made toward the purchase of the Eligible Lot such that an Amount

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Paid can be established; (iv) records concerning any “foreclosure,” “default,” another alleged 

loss of the Eligible Lot, or legal dispute with Subject Sellers; (v) records reflecting any payment 

or Transfer from Subject Seller to the Consumer (other than the Transfer of the Eligible Lot to 

the Lot Purchaser); (vi) a sworn declaration from the Consumer stating that the Consumer 

qualifies as a Lot Purchaser with respect to the Eligible Lot; and (vii) any other documents or 

information the Receiver reasonably requires to implement this Plan.

5. “Consumer” means any person or entity who: (i) purchased an Eligible Lot as 

part of the Sanctuary Belize or Kanantik retail sales process; (ii) purchased an Eligible Lot that 

was originally purchased from Subject Sellers as part of the retail sales process; or (iii) reached a 

Court-approved settlement with the FTC or Receiver entitling the person or entity to be treated 

similarly to a consumer with respect to Court-approved redress. Notwithstanding the foregoing, 

a person or entity is not a “Consumer” if the person or entity: (i) received a full refund; (ii) (a) 

received compensation from Subject Sellers for help selling lots, (b) made a representation the 

Court found to be unlawful (or controlled others who did), and knew or reasonably should have 

known that the misrepresentation was false or misleading, and (c) has not reached a Courtapproved settlement with the FTC or Receiver entitling the person or entity to be treated 

similarly to a consumer with respect to Court-approved redress; (iii) (a) performed work of any 

sort, at any time, at any location anywhere owned or controlled by Subject Sellers (including, 

without limitation, the California locations at Michelson Drive, Dove Street, and Edinger 

Avenue) regardless of whether the person or entity contends the work was unpaid, purportedly 

unrelated to lot sales, purportedly independent, or immaterial for some other reason; (b) made a 

representation the Court found to be unlawful (or controlled others who did), and knew or 

reasonably should have known that the misrepresentation was false or misleading, and (c) has 

not reached a Court-approved settlement with the FTC or Receiver entitling the person or entity 

to be treated similarly to a consumer with respect to Court-approved redress; or (iv) (a) is a

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person or entity that received from Subject Sellers, as part of the consideration for a lot or 

otherwise, any Asset (including, without limitation, equity or rights) the value of which 

depended on anything other than the value of a specific Eligible Lot, and (b) has not reached a 

Court-approved settlement with the FTC or Receiver entitling the person or entity to be treated 

similarly to a consumer with respect to Court-approved redress, provided, however, if the 

Receiver can reasonably distinguish the Putative Consumer’s investment transaction from the 

Putative Consumer’s retail lot purchase, Putative Consumer may still qualify as a Consumerwith 

respect to the retail lot purchase only.

6. “Consumer Committee” means the committee formed pursuant to the Interim 

Receivership Management Order, ECF No. 559 (Aug. 23, 2019), as modified herein.

7. “Contingent Lot” means a lot which, if it existed, a Lot Purchaser would have a 

right to acquire from Subject Sellers. A Lot Purchaser purchased a Contingent Lot if the Lot 

Purchaser: (1) bought the right to a lot from Subject Sellers pursuant to a contract requiring 

them to either give the Lot Purchaser a specific, identified lot (with or without any additional 

payment) from lots the Subject Sellers would make available to the Lot Purchaser, or refund the 

Lot Purchaser fully; (2) did not receive a lot or a full refund; and (3) did not receive equity or 

ownership interest as part of the transaction.

8. “Covered Third Party” includes any person or entity (other than the Receiver, 

FTC or a Subject Seller) that engages in any transaction (including, without limitation, the 

Transfer of any Asset) related to the Subject Matter of the litigation with the Receiver, theFTC, 

or another Covered Third Party. Thus, a person or entity (other than the Receiver, FTC or a 

Subject Seller) that is not already a Covered Third Party becomes a Covered Third Party if it 

engages in any transaction (including, without limitation, the Transfer of any Asset) related to 

the Subject Matter of the case with the Receiver, the FTC, or a Covered Third Party.

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Additionally, and notwithstanding anything else herein, the New Sanctuary HOA, any Qualified 

Developer, and any Receiver Assignee are Covered Third Parties.

9. “Disclosure No. 1” means a disclosure that states, at minimum, all reasonably 

known risks with the election to receive a New Sanctuary Lot including, among other things:

(1) investing in New Sanctuary is inherently risky; (2) Lot Purchasers may lose their entire 

monetary investment; (3) there is no guarantee that New Sanctuary will have any amenities, 

infrastructure, or other important attributes; (4) there is no guarantee that titles will be provided 

for New Sanctuary Lots; (5) Lot Purchasers may owe taxes to Belizean, domestic, or other 

authorities, including both future liabilities and arrearages (regardless of what taxes the Lot 

Purchaser may have understood Subject Sellers paid); (6) there is a substantial risk that New 

Sanctuary Lots will not appreciate, and no resale market for such lots will exist; (7) it is possible 

that Lot Purchasers who decline to receive a New Sanctuary Lot will be better off than Lot 

Purchasers who elect to receive a New Sanctuary Lot; and (8) a Lot Purchaser’s election to 

receive a New Sanctuary Lot cannot be undone.

10. “Disclosure No. 2” means a disclosure that states, at minimum, all reasonably 

known risks with the election to decline to receive a New Sanctuary Lot including, among other 

things: (1) investing in New Sanctuary may be profitable or reduce losses relative to other 

alternatives; (2) Lot Purchasers could lose an opportunity to recover their investment; (3) 

amenities, infrastructure, or other important attributes that enhance New Sanctuary Lot values 

may be completed; (4) the Government of Belize could facilitate the provision of titles for New 

Sanctuary Lots; (5) New Sanctuary Lots may appreciate in the future, and there may be a resale 

market for such lots; (6) future taxes associated with New Sanctuary Lots, or existing tax 

obligations, may be relatively insubstantial, reduced by participation in the Plan, or both; (7) it is 

possible that Lot Purchasers who elect to receive a New Sanctuary Lot in New Sanctuary will be

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better off than Lot Purchasers who elect to decline to receive a New Sanctuary Lot; and (8) a Lot 

Purchaser’s election to decline to receive a New Sanctuary Lot cannot be undone.

11. “Disclosure No. 3” means a disclosure that states, at minimum, all reasonably 

known risks associated with declining to make an election, including, among other things, in 

substance: (1) Non-Participating Owners will lose any right to proceeds the Receiver or FTC 

recover (this could be thousands of dollars per Lot Purchaser, or more); (2) Non-Participating 

Owners will likely have fewer or inferior rights under their Ratified Contracts than Consumers 

who participate; (3) Non-Participating Owners will not receive redress payments; (4) NonParticipating Owners that own a lot within New Sanctuary will be obligated to pay fees, dues or 

assessments the Receiver or New Sanctuary HOA imposes; (5) Non-Participating Owners 

potentially will not receive title to their lot; (6) Non-Participating Owners’ obligations (if any) 

associated with their lot will continue and may increase; (7) Non-Participating Owners’ lots may 

not appreciate, and it may be impossible to resell them; (8) if Lot Purchasers do not elect to 

receive a New Sanctuary Lot, they will lose any potential returns associated with a New 

Sanctuary Lot; (9) Lot Purchasers may still be obligated to make payments pursuant to a Ratified 

Contract; (10) Lot Purchasers may still be required to make tax payments associated with their 

lot, and those tax payments may exceed the taxes they would pay if they elect to participate; (11) 

a Lot Purchaser’s decision not to participate in the Plan and make an election cannot be undone; 

and (12) although no one is required to participate in the Plan and make an election, the Receiver 

and FTC strongly recommend that all Lot Purchasers do so.

12. “Disclosure No. 4” means a disclosure that states, at minimum, all reasonably 

known risks associated with electing to receive a Kanantik Lot, including, among other things, in 

substance: (1) there is no guarantee that the Receiver will attempt to sell Kanantik to a 

developer that will develop Kanantik; (2) Lot Purchasers may lose their entire monetary 

investment; (3) there is no plan to develop Kanantik, and development at Kanantik is unlikely to

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occur; (4) it is possible that titles to Kanantik Lots will be unavailable; (5) lots at Kanantik are 

unlikely to appreciate; (6) it may be impossible to resell a lot at Kanantik; (7) Lot Purchasers 

may owe taxes to Belizean, domestic, or other authorities, including both future liabilities and 

arrearages (regardless of what taxes the Lot Purchaser may have understood Subject Sellers 

paid); (8) a Kanantik Lot Purchaser that elects to receive a Kanantik Lot will lose potential 

returns associated with a New Sanctuary Lot; (9) although there is no way to know for certain, 

New Sanctuary Lots may be less risky than Kanantik lots, with greater possibility of appreciation 

and resale; and (10) a Kanantik Lot Purchaser’s decision to receive a Kanantik Lot cannot be 

undone.

13. “Dispute Notice” is a notice to the Receiver that contains or attaches all elements 

explained herein that a Dispute Notice must contain or attach.

14. “Effective Date” means December 31, 2020 or when the Court enters this Order, 

whichever is later.

15. “Election Form” means a form or package of forms and materials (subject to 

FTC approval) that the Receiver will design in accordance with this Plan to receive and record a 

Lot Purchaser’s election pursuant to this Plan, and that is otherwise consistent with this Plan’s 

terms.

16. “Eligible Lot” means: (i) a specific, identified lot in Sanctuary Belize (as 

defined herein), or is identified as being in Sanctuary Belize (as defined herein); (ii) a specific, 

identified lot in Kanantik (as defined herein), or identified as being in Kanantik (as defined 

herein); (iii) a specific, identified lot purchased from Subject Sellers through a transaction in 

which the buyer reasonably believed it acquired a specific, identified lot from Subject Sellers for 

consideration (regardless of whether the specific, identified lot actually exists); or (iv) a 

Contingent Lot. For purposes of this definition, a “lot” includes both real property as well as a 

specific, identified interest in a residence, such a condominium, apartment or townhome, 

regardless of whether the residence actually exists or existed. Notwithstanding the foregoing, 

“Eligible Lots” do not include New Sanctuary Inventory.

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17. “Eligible Kanantik Collections” means all Assets, net of incurred Kanantik 

Receivership Expenses, that the Receiver controls pursuant to Final Orders (1) to which no 

appellate rights exist, (2) that are derived primarily from Kanantik, and (3) held by legal entities 

over which the Receiver did not have Court-confirmed preliminary control over, or a majority 

interest in, on July 31, 2020. For clarity, Assets must meet all three criteria to qualify as 

Eligible Kanantik Collections. Furthermore, Assets that are derived in substantial part from 

Sanctuary Belize, New Sanctuary, or any other source besides Kanantik are not Eligible 

Kanantik Collections.

18. “Eligible Prior Lot Purchaser” means a Prior Lot Purchaser who is a Consumer, 

and who Transferred an Eligible Lot to a Lot Purchaser at a Loss.

19. “Eligible Sanctuary Collections” means all Assets, net of incurred New 

Sanctuary Receivership Expenses, that the Receiver controls pursuant to Final Orders (1) to 

which no appellate rights exist and (2) that are not Eligible Kanantik Collections.

20. “Final Election Date” means the date by which the deadline in this Plan for all 

Lot Purchasers to have made elections has passed (notwithstanding any Dispute Notices that any 

Consumers, Putative Consumers or Non-Participating Owners served or are pursuing, or any 

extensions the Receiver approves pursuant to this Plan).

21. “Final Orders” mean all orders of this Court in In re Sanctuary Belize Litigation, 

No. 18-3309 (D. Md.) that enter judgment against any Defendant or Relief Defendant, or require 

the turnover of any Asset to the Receiver or the FTC.

22. “First Kanantik Distribution” is the amount the Receiver can distribute to 

Kanantik Lot Purchasers consistent with the terms of this Plan as of the Final ElectionDate.

23. “First Sanctuary Distribution” is the amount the Receiver can distribute to 

Sanctuary Belize Lot Purchasers consistent with the terms of this Plan as of the FinalElection 

Date.

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24. “Ineligible Prior Lot Purchaser” is a Prior Lot Purchaser who is ineligible for 

redress or rights under this Plan for any reason including, without limitation, because the Prior 

Lot Purchaser did not Transfer an Eligible Lot to a Lot Purchaser at a loss (excluding losses or 

costs due to transaction costs, improvements to the lot, or other expenses that do not reasonably 

constitute payment for the Eligible Lot’s physical land itself, or amounts due or arguably due 

from the Lot Purchaser to the Prior Lot Purchaser related to the Lot, but unpaid), or because the 

Prior Lot Purchaser is not a Consumer.

25. “Interim New Sanctuary HOA Fee” is a reasonable fee not to exceed $200 per 

month per lot within New Sanctuary.

26. “Kanantik” means: (1) the physical area in Belize known as “Kanantik,” 

“Palmaya,” the “Kanantik Resort,” or any other area anywhere in the world (other than 

Sanctuary Belize) that any Subject Seller marketed, helped market, owns, owned, controls, or 

controlled, and that the Receiver has the legal right to control; (2) any island (regardless of the 

island’s name) that the Receiver controls, or has the right to control, which Subject Sellers used 

primarily for any sales-related purpose related to Eligible Lots not in Sanctuary Belize at any 

time; (3) any physical area or Assets owned or controlled by Mango Springs Development Ltd., 

G&R Development Company of Belize, Ltd., Kanantik International Limited, Palmaya 

Development, Ltd., and/or Mango Springs Development, LLC; (4) any area (other than an 

Eligible Lot) Transferred from any of the foregoing areas to any Subject Seller; (5) all 

development rights or other rights associated with any of the foregoing areas; and (6) all roads, 

structures, or other fixtures within or on any physical land that constitutes any of the foregoing 

areas. For clarity, any real property that arguably qualifies as both “Sanctuary Belize” and 

“Kanantik” is deemed to be exclusively Sanctuary Belize. Assets that arguably qualify as both 

“Sanctuary Belize” and “Kanantik” are deemed to be exclusively Sanctuary Belize.

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27. “Kanantik Consumer Redress” means rights to the First Kanantik Distribution 

(if any), the Second Kanantik Distribution (if any), and any subsequent distributions to Kanantik 

Lot Purchasers.

28. “Kanantik Distribution Formula” is the formula pursuant to which the amount 

of cash redress each Kanantik Lot Purchaser will receive is determined: (1) the Receiver will 

determine the amount of liquid Eligible Kanantik Collections minus both the Kanantik Holdback 

Amount (unless the Receiver or Court has determined that this amount is available for redress), 

Kanantik Receivership Expenses that the Receiver has incurred but not yet paid, and a 

reasonable estimate of the Kanantik Receivership Expenses the Receivership will incur over the 

next year; (2) the Receiver will distribute to each Kanantik Lot Purchaser a pro rata share of the 

remaining amount based on the number of Kanantik Lot Purchasers and each Kanantik Lot 

Purchaser’s Amount Paid. For purposes of this formula, “Amount Paid” includes Amounts Paid 

with respect to multiple Kanantik Lots if the Kanantik Lot Purchaser made payments to Subject 

Sellers concerning more than one Kanantik Lot.

29. “Kanantik Holdback Amount” means 10% of Eligible Kanantik Collections.

30. “Kanantik Lot” means an Eligible Lot that is either not in Sanctuary Belize, or

that wasmoved to Sanctuary Belize prior to the Effective Date (with or without the Lot 

Purchaser’s consent).

31. “Kanantik Lot Purchaser” means a Lot Purchaser who purchased a Kanantik 

Lot from Subject Sellers.

32. “Kanantik Receivership Expenses” mean the costs and expenses the Receiver 

incurs solely managing Kanantik, including the Receiver’s own fees and expenses, those of third 

parties performing functions related to Kanantik that the Receiver engages consistent with this 

Plan, and other Receivership costs related to Kanantik. However, costs and expenses the 

Receiver incurs managing Kanantik, or otherwise related to Kanantik, are not Kanantik

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Receivership Expenses if those costs or expenses are also incurred in part to manage or perform 

other functions related to New Sanctuary or anything else other than Kanantik.

33. “Kanantik Reformed Contract” means a lot sale contract for a Kanantik Lot 

that is required by, and complies with, this Order. The Kanantik Reformed Contract format may 

vary for differently-situated Lot Purchasers, including those who have no further payment 

obligation.

34. “Kanantik Template Contract” means a sample contract identical to the 

Kanantik Reformed Contract, except without particular terms that are unknown to the Receiver 

because they will reflect decisions that a Kanantik Lot Purchaser has not yet made. The 

Kanantik Template Contract format may vary for differently-situated Lot Purchasers, including 

those who have no further payment obligation.

35. “Lot Purchaser” means any Consumer who purchased at least one Eligible Lot.

36. “Loss” is a financial injury suffered by an Eligible Prior Lot Purchaser equal to 

the difference between: (a) the amount the Eligible Prior Lot Purchaser actually paid for an 

Eligible Lot including principal, interest, taxes, HOA fees, and other costs or consideration that 

the Receiver reasonably determines constitute Assets the Eligible Prior Lot Purchaser actually 

paid or otherwise Transferred to Subject Sellers for the Eligible Lot; and (b) the amount the 

Eligible Prior Lot Purchaser actually received for an Eligible Lot including principal, interest, 

taxes, HOA fees, and other costs or consideration that the Receiver reasonably determines 

constitute Assets the Eligible Prior Lot Purchaser actually received for the Eligible Lot. 

Provided, however, that (a) and (b) exclude losses, costs, gains or payments or other amounts 

paid or received for or due to transaction costs, improvements to the lot, other expenses or things 

of value that do not reasonably constitute payment for the Eligible Lot’s physical land itself, and 

amounts due or arguably due from the Lot Purchaser to the Prior Lot Purchaser related to the 

Lot, but unpaid.

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37. “Mail” means any type of physical delivery, including postal mail, Federal 

Express, UPS, DHL, courier, or otherwise.

38. “Minimum Development Period” is the three years after whenever the Qualified 

Developer’s obligations under this Order commence.

39. “Minimum Development Tasks” mean: (1) repairing damage due to hurricane 

Nana or other natural disasters prior to the Effective Date; (2) providing power and water to 

every lot in New Sanctuary (other than New Sanctuary Inventory); (3) completing any 

necessary roadwork so that every lot in New Sanctuary is accessible by an improved road (other 

than New Sanctuary Inventory); (4) providing 24-hour security, including physical gates and 

guards at all roadway and waterway access points at all times, and regular patrols around the 

perimeter and through the development’s roadways; (5) completing a bridge (including 

associated permitting, entitlements and roadwork) over the Sittee River to connect New 

Sanctuary to the road to Hopkins, Belize on the other side of the Sittee River (from a location 

within New Sanctuary that the Receiver will select); and (6) performing maintenance and 

repairs as needed on work performed as part of the Qualified Developer’s Minimum 

Development Tasks.

40. “Mortgage Note” means a debt instrument that documents a loan between the 

Lot Purchaser and the Receiver (or Receiver Assignee) secured by a New Sanctuary Lot or 

Kanantik lot. The Mortgage Note must reflect the Reformed Contract Key Finance Terms. 

The Mortgage Note may contain other standard terms that the Receiver may determine and 

should be enforceable in Belize. Subject to the Receiver’s discretion, the Mortgage Note may 

be a single document or multiple documents that accomplish the Mortgage Note’s objectives 

consistent with this Plan. The Mortgage Note must contain straightforward, simple language 

reasonably understandable to Lot Purchasers without counsel. Mortgage Notes are subject to 

FTC approval.

41. “New Sanctuary” is Sanctuary Belize after the Effective Date.

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42. “New Sanctuary Lot” means lots in New Sanctuary that Lot Purchasers own 

pursuant to New Sanctuary Reformed Contracts.

43. “New Sanctuary HOA” is the homeowners’ association for New Sanctuary.

44. “New Sanctuary Inventory” means lots in New Sanctuary that the Receiver 

controls.

45. “New Sanctuary Owner” means parties to a fully-executed New Sanctuary 

Reformed Contact.

46. “New Sanctuary Reformed Contract” is a lot sale contract for a New Sanctuary 

Lot that is required by, and complies with, this Order. The New Sanctuary Reformed Contract 

format may vary for differently-situated Lot Purchasers, including those who have no further 

payment obligation.

47. “New Sanctuary Template Contract” means a sample contract identical to the 

New Sanctuary Reformed Contract, except without particular terms that are unknown to the 

Receiver because they will reflect decisions that a Sanctuary Belize Lot Purchaser has not yet 

made. The New Sanctuary Template Contract format may vary for differently-situated Lot 

Purchasers, including those who have no further payment obligation.

48. “Non-Participating Owners” are owners who own, or owned, an Eligible Lot, 

but who have not participated in this Plan and, as a result, have no rights under this Plan except 

as expressly specified herein.

49. “Post-Filing Transferee” means someone who acquired rights, or claims to have 

acquired rights, to an Eligible Lot on or after November 7, 2018 from a person or entity other 

than Subject Sellers. However, notwithstanding the foregoing, a person or entity that reached a 

Court-approved settlement with the FTC or Receiver entitling the person or entity to be treated 

similarly to a Consumer with respect to Court-approved redress is not a “Post-Filing Transferee.”

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50. “Post-Filing Transferor” means someone who Transferred rights, or claims to 

have Transferred rights, to an Eligible Lot on or after November 7, 2018. However, 

notwithstanding the foregoing, a person or entity that reached a Court-approved settlement with 

the FTC or Receiver entitling the person or entity to be treated similarly to a Consumer with 

respect to Court-approved redress is not a “Post-Filing Transferor.”

51. “Post-Termination Maintenance” means, for the Post-Termination Maintenance 

Period: (1) maintaining work completed as part of the Qualified Developer’s Minimum 

Development Tasks; (2) maintaining security in a manner consistent with the security provided 

as part of the Minimum Development Tasks, and (3) negotiating in good faith concerning a new 

contract to provide New Sanctuary with community services after the Post-Termination 

Maintenance Period pursuant to terms to which the Qualified Developer agrees.

52. “Post-Termination Maintenance Period” is the period beginning when the 

Minimum Development Period ends and concluding one year later.

53. “Price Multiplier” means: (1) for Sanctuary Belize Lot Purchasers, a percentage 

equal to (a) 75% (.75), or (b) if the Sanctuary Belize Lot Purchaser agrees to a one-year Transfer 

Restriction on the New Sanctuary Lot the Lot Purchaser selects, 73% (.73), (c) if the Sanctuary 

Belize Lot Purchaser agrees to a two-year Transfer Restriction on the New Sanctuary Lot the Lot 

Purchaser selects, 71% (.71), (d) if the Sanctuary Belize Lot Purchaser agrees to a three-year 

Transfer Restriction on the New Sanctuary Lot the Lot Purchaser selects, 69% (.69), (e) if the 

Sanctuary Belize Lot Purchaser agrees to a four-year Transfer Restriction on the New Sanctuary 

Lot the Lot Purchaser selects, 67% (.67), or (f) if the Sanctuary Belize Lot Purchaser agrees to a 

five-year Transfer Restriction on the New Sanctuary Lot the Lot Purchaser selects, 65% (.65);

(2) for Kanantik Lot Purchasers who do not elect to receive a Kanantik Lot, (a) 65% (.65), or (b) 

if the Kanantik Lot Purchaser agrees to a one-year Transfer Restriction on the New Sanctuary 

Lot the Lot Purchaser selects, 63% (.63), (c) if the Kanantik Lot Purchaser agrees to a two-year

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Transfer Restriction on the New Sanctuary Lot the Lot Purchaser selects, 61% (.61), (d) if the 

Kanantik Lot Purchaser agrees to a three-year Transfer Restriction on the New Sanctuary Lot the 

Lot Purchaser selects, 59% (.59), (e) if the Kanantik Lot Purchaser agrees to a four-year Transfer 

Restriction on the New Sanctuary Lot the Lot Purchaser selects, 57% (.57), or (f) if the Kanantik 

Lot Purchaser agrees to a five-year Transfer Restriction on the New Sanctuary Lot the Lot 

Purchaser selects, 55% (.55); and (3) for Kanantik Lot Purchasers who elect to receive a 

Kanantik Lot, 100% (1.00).

54. “Prior Lot Purchaser” means a person or entity (other than Subject Sellers) that 

Transferred an Eligible Lot to a Lot Purchaser on or before the Effective Date.

55. “Purchase Price” means the purchase price of an Eligible Lot, or a New 

Sanctuary Lot, which is equal to the Seller Deceptive Price multiplied by the applicable Price 

Multiplier, divided by the Tax Adjustment Factor.

56. “Putative Consumer” is any party that disputes the Receiver’s decision that the 

party is not entitled to benefits pursuant to this Plan in whole or in part because the party is not a 

“Consumer.”

57. “Qualified Developer” means a Covered Third Party that: (1) in the Receiver’s 

judgment, has the expertise and financial resources to perform any necessary development tasks, 

including the Minimum Development Tasks at Sanctuary Belize during the Minimum 

Development Period; (2) in the Receiver’s judgment, has the expertise and financial resources to 

perform the Post-Termination Maintenance at Sanctuary Belize during the Post-Termination 

Maintenance Period; (3) is contractually obligated to perform the Minimum Development Tasks 

and Post-Termination Maintenance at Sanctuary Belize; (4) in the Receiver’s judgment, has the

expertise and financial resources to perform other discretionary development functionsincluding 

commercial development and new lot sales; and (5) has received FTC and Court approval.

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58. “Ratified Contract” is what a Non-Participating Owner who is a Consumer will 

receive if they do not elect to participate in this Plan.

59. “Receiver” means Robb Evans & Associates LLC.

60. “Receiver Assignee” means a party that assumes some or all of the Receiver’s 

rights or obligations under this Order with the Receiver’s consent.

61. “Receiver Proposed Amount Paid” means an amount that, based on the 

Receiver’s analysis of Subject Seller records, is the Receiver’s good faith estimate ofthe 

applicable Amount Paid.

62. “Receivership” means the receivership estate the Court created in this matter on 

November 5, 2018 for the benefit of consumers, as continued, expanded and modified by 

subsequent orders in this matter.

63. “Receivership Entity” means any entity within the Receivership pursuant to or 

as a result of any order of this Court, any entity that the Receiver directly or indirectly controls 

pursuant to or as a result of an order of this Court, and any entity in which the Receiver controls 

a majority interest pursuant to or as a result of an order of this Court.

64. “Redress Communications” mean any form, notice, contract, proposed contract, 

or other documents disseminated systematically to multiple people, or any other standardized 

communication or series of communications from the Receiver (or Receiver Assignee).

65. “Reformed Contract Key Finance Terms” will be the same for all Reformed 

Contracts for which the relevant Amount Paid is less than the Purchase Price: (1) the amount 

owed under the contract, computed as the Purchase Price less the Amount Paid; (2) a ten-year 

obligation; (3) payable in equal monthly installments; (4) 0.00% interest; (5) no prepayment 

penalty; (6) no late fees or other charges that exceed a reasonable estimate of the cost the missed 

payment or other event actually caused the Receiver (or Receiver Assignee); and (7) any 

Transfer Restriction the Lot Purchaser has elected.

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66. “Sanctuary Belize” means: (1) the area in Belize known as “Sanctuary Belize,” 

“Sanctuary Bay,” and “The Reserve”; (2) any island that the Receiver controls, or has the right to 

control, which Subject Sellers used for any sales-related purpose at any time (regardless of the 

island’s name); (3) any real property in Belize owned or controlled by Andris Pukke, Luke 

Chadwick, Peter Baker, John Usher, or any Receivership Entity; (4) any area owned or 

controlled by Dolphin Development Company Limited or any other entity that any order in FTC

v. AmeriDebt, Inc., No. 03-cv-3317 (D. Md.) required any Subject Seller (or any entity 

controlled by any Subject Seller) to turn over to the Receiver; (5) any area in Belize controlled 

by any Subject Seller but not included in the foregoing; (6) any area (other than an Eligible Lot) 

Transferred from any of the foregoing areas to any Subject Seller; (7) all development rights or 

other rights associated with any of the foregoing areas; and (8) all roads, structures, or other 

fixtures within or on any physical land that constitutes any of the foregoing areas. However, no 

part of Kanantik is Sanctuary Belize.

67. “Sanctuary Belize Consumer Redress” means rights to the First Sanctuary 

Distribution (if any), the Second Sanctuary Distribution (if any), and any subsequent 

distributions to Sanctuary Belize Lot Purchasers.

68. “Sanctuary Belize Lot Purchaser” means a Lot Purchaser who purchased an 

Eligible Lot in Sanctuary Belize from Subject Sellers.

69. “Sanctuary Distribution Formula” is the formula pursuant to which the amount 

of cash redress each Sanctuary Belize Lot Purchaser will receive is determined: (1) the 

Receiver will determine the amount of liquid Eligible Sanctuary Collections minus both the 

Sanctuary Holdback Amount (unless the Receiver or Court has determined that this amount is 

available for redress), Sanctuary Receivership Expenses that the Receiver has incurred but not 

yet paid, and a reasonable estimate of the Sanctuary Receivership Expenses the Receivership will 

incur over the next year; (2) the Receiver will distribute to each Sanctuary Belize Lot Purchaser a

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pro rata share of the remaining amount based on the number of Sanctuary Belize Lot Purchasers 

and each Sanctuary Belize Lot Purchaser’s Amount Paid. For purposes of this formula, 

“Amount Paid” includes Amounts Paid with respect to multiple Sanctuary Belize Lots if the 

Sanctuary Belize Lot Purchaser made payments to Subject Sellers concerning more than one 

Sanctuary Belize Lot.

70. “Sanctuary Holdback Amount” means 10% of Eligible Sanctuary Collections.

71. “Sanctuary Receivership Expenses” mean any costs and expenses the Receiver 

incurs that are not solely Kanantik Receivership Expenses, including without limitation the 

Receiver’s own fees and expenses, those of third parties the Receiver engages pursuant to this 

Plan, other Receivership costs related to Sanctuary Belize or New Sanctuary, or related to Assets 

that are not related solely to Kanantik.

72. “Second Kanantik Distribution” means the amount the Receiver can distribute 

to Kanantik Lot Purchasers consistent with the terms of this Plan as of the Second Kanantik 

Distribution Date.

73. “Second Kanantik Distribution Date” means the date when no appellate rights

are available to challengers (if any) of this Plan or any Final Order.

74. “Second Sanctuary Distribution” means the amount the Receiver can distribute 

to Sanctuary Belize Lot Purchasers consistent with the terms of this Plan as of the Second 

Sanctuary Distribution Date.

75. “Second Sanctuary Distribution Date” means the date when no appellate rights 

are available to challengers (if any) of this Plan or any Final Order.

76. “Seller Deceptive Price” means the total amount (including principal, interest, 

Belize General Sales Tax (“GST”), and any other consideration or charges (but not including 

HOA fees) that, in the Receiver’s reasonable estimation, the Lot Purchaser would have paid to 

Subject Sellers or Prior Lot Purchaser if the Lot Purchaser timely paid (but not paid in advance)

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all amounts due under the operative contract between the Lot Purchaser and Subject Sellers (or 

Prior Lot Purchaser) concerning an Eligible Lot.

77. “Subject Matter” of the case means Sanctuary Belize, Kanantik, and any other 

Asset that the Receiver or FTC owns, controls or has the right to control pursuant to the Final 

Orders or this Plan, the FTC’s complaint in this matter, and the trial record in this matter.

78. “Subject Seller” means any Defendant or Relief Defendant in this action, any 

Receivership Entity, any person or entity that was or is a regular employee of, or contractor for, 

any Defendant, Relief Defendant or Receivership Entity at any time, any person or entity who 

submitted a Claim Application that was unsuccessful because the Putative Consumer did not 

qualify as a Consumer, and any agents, attorneys, successors, affiliates, nominees, or family 

members of any of the foregoing (except that family members includes only family members as 

of November 7, 2018).

79. “Tax Adjustment Factor” means the sum of one (1) plus the Belize General 

Sales Tax (“GST”) rate as of the Effective Date (by way of example, if the GST is 12.5% as of 

the Effective Date, the Tax Adjustment Factor is 1.125).

80. “Termination Date” means December 31, 2022 unless the FTC consents to 

extend the Plan or the Court approves an extension.

81. “Total Receivership Collections” includes all Assets the Receiver controls 

pursuant to this Plan or the Final Orders.

82. “Transfer” or “Transferred” means (i) any change in legal or beneficial

ownership, regardless of extent, and regardless of how characterized or achieved, or (ii) any 

direct or indirect change in control, regardless of extent, and regardless of how characterized or 

achieved.

83. “Transfer Restriction” means a prohibition on the sale of the lot subject to the 

restriction for the period of the restriction.

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II. ELIGIBILITY DETERMINATIONS

A. As soon as practicable after the Effective Date, the Receiver will communicate to 

all Consumers and/or Putative Consumers with whom it has already communicated by email in 

the past basic information regarding what Consumers and/or Putative Consumers should expect 

regarding this Plan including, without limitation, information about timelines and the 

information Claims Applications are likely to require. Also as soon as practicable after the 

Effective Date, the Receiver will make a reasonable effort to post, or cause others to post, the 

same information on its website, and on websites, Facebook groups, or other similar 

communication forums of which the Receiver is aware on the Effective Date.

B. As soon as practicable after the Effective Date, the Receiver will hold at least two 

moderated informational sessions (via teleconference or videoconference) to present information 

about this Plan. The Receiver will notify all Consumers and/or Putative Consumers with whom 

it has already communicated by email in the past about the forthcoming informational sessions, 

and make a reasonable effort to post, or cause others to post, invitations to the informational 

sessions on its website, and on websites, Facebook groups, or other similar communication 

forums of which the Receiver is aware on the Effective Date.

C. Within 45 days of the Effective Date, the Receiver must make a reasonable effort 

to contact every Consumer and/or Putative Consumer, provide them with a Claim Application, 

and encourage its prompt return. Consumers who purchased more than one Eligible Lot must 

submit one Claim Application for each Eligible Lot. Consumers who purchased and co-signed 

for an Eligible Lot jointly (for instance, as a married couple) may submit a single joint Claim 

Application.

1. Reasonable efforts to contact every Consumer and/or Putative Consumer 

include, at minimum, making attempts by Mail and email (and if those attempts fail, by 

telephone) based on the best information reasonably available to the Receiver.

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2. When the Receiver provides a Claim Application to a Consumer and/or 

Putative Consumer, the Receiver will provide the Consumer and/or Putative Consumer a 

Receiver Proposed Amount Paid, but only if it is possible to do so with reasonable ease and 

certainty. If the Receiver provides a Receiver Proposed Amount Paid, the Receiver also will 

include sufficient underlying detail (including payment terms, dates, and amounts where 

applicable) to enable the Claim Application recipient to verify the Receiver ProposedAmount 

Paid.

D. Claim Applications are due 90 days after the Effective Date. The Receiver must 

clearly and conspicuously disclose to Consumers and/or Putative Consumers that failure to 

submit a Claim Application on or before the deadline will render the failing Consumerineligible 

to participate in the Plan (and, therefore, a Non-Participating Owner) with respect to the Eligible 

Lot to which the untimely Claim Application applies.

E. Putative Consumers and/or Consumers who receive a Receiver Proposed Amount 

Paid must specify in their Claim Application whether they accept the Receiver Proposed Amount 

Paid. If the Putative Consumer and/or Consumer accept the Receiver Proposed Amount Paid, 

then the Receiver Proposed Amount Paid becomes the Putative Consumer and/or Consumer’s 

Amount Paid notwithstanding anything else herein. Also notwithstanding anything else herein, 

if the Putative Consumer and/or Consumer accept the Receiver Proposed Amount Paid, the 

Putative Consumer and/or Consumer will not be obligated to submit documentation as part ofthe 

Claims Application to substantiate amounts paid to Subject Sellers.

F. Within 80 days of the Effective Date, the Receiver must make reasonable efforts 

to contact every Consumer and/or Putative Consumer that has not yet submitted a Claim 

Application, unless that Consumer and/or Putative Consumer has previously requested no further 

contact. Reasonable efforts to contact every Consumer and/or Putative Consumer that has not 

yet submitted a Claim Application include, at minimum, making attempts by Mail and email

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(and, if those attempts fail, by telephone) based on the best information reasonably available to 

the Receiver until: (1) the Consumer and/or Putative Consumer submit a Claim Application; (2) 

it becomes reasonably apparent to the Receiver, in the Receiver’s judgment, that the Consumer 

and/or Putative Consumer will not submit a Claim Application or that further contact is 

inappropriate for some other reason (for instance, if the Consumer and/or Putative Consumer 

request no further contact); or (3) the Receiver has exhausted reasonable measures to contact the 

Consumer and/or Putative Consumer. The Receiver will reiterate that failure to submit a Claim 

Application on or before the deadline will render the Putative Consumer and/or Consumer 

ineligible to participate in the Plan with respect to the Eligible Lot to which the untimely Claim 

Application applies. Putative Consumers and/or Consumers with potential claims to an Eligible 

Lot who do not submit timely Claim Applications with respect to that Eligible Lot become a 

Non-Participating Owner with respect to that Eligible Lot, unless another Lot Purchaser receives 

rights to the same Eligible Lot under this Plan (in which case the Eligible Lot will become the 

Lot Purchaser’s New Sanctuary or Kanantik Lot, or is returned to the Receiver’s control).

G. The Receiver will promptly review Claim Applications to determine whether they 

contain all required information.

1. If the Claim Application is materially incomplete such that it renders the 

Receiver unable to evaluate the Claim Application in accordance with this Plan, the Receiver 

must promptly provide the Putative Consumer and/or Consumer with clear instructions regarding 

what additional information the Lot Purchaser must submit, or otherwise how to complete the 

Claim Application properly.

2. Failure to submit a completed Claim Application on or before 120 days 

after the Effective Date will render the Lot Purchaser ineligible to participate in the Plan with 

respect to the Eligible Lot to which the incomplete or untimely Claim Application applies. The 

Receiver must clearly and conspicuously disclose this deadline to any Lot Purchasers who must

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amend or supplement their Claim Application. The only exception is if, in the Receiver’s 

reasonable judgment following a written request from the Lot Purchaser, it would be equitable 

given the totality of the circumstances to provide the Lot Purchaser with additional time to 

complete the Claim Application before the Receiver determines that the application is untimely 

or incomplete.

3. Whenever the Receiver receives an initial Claim Application, or 

supplemental materials related to or supporting a Claim Application, the Receiver will promptly 

acknowledge receipt.

H. Within 150 days of the Effective Date, the Receiver will determine: (1) which 

Consumers and/or Putative Consumers who have submitted a Claim Application qualify as Lot 

Purchasers; (2) which Lot Purchasers have rights to which Eligible Lots; (3) the Purchase Price 

of each Eligible Lot; (4) the Lot Purchaser’s Amount Paid for each Eligible Lot; and (5) the 

difference between the Purchase Price and the Amount Paid (if any).

I. If only one Lot Purchaser has rights to a particular Eligible Lot, then the Receiver 

must assign that Eligible Lot to that Lot Purchaser.

J. If a Consumer and/or Putative Consumer submit a Claim Application and the 

Receiver determines the Consumer qualifies as a Lot Purchaser and otherwise approves the 

Claim Application, but Subject Sellers did not consider the Lot Purchaser as holding an interest 

with respect to a lot as of November 7, 2018 for any reason (including, without limitation, 

because no such lot exists, or an alleged “foreclosure” or default), the Receiver will assign that 

Lot Purchaser rights to a reasonably comparable Eligible Lot from New Sanctuary Inventory 

considering the totality of the circumstances including, without limitation, the Lot Purchaser’s 

Amount Paid and the available New Sanctuary Inventory.

K. If more than one Lot Purchaser has rights to the same Eligible Lot, the Receiver 

will assign the Eligible Lot to the Lot Purchaser who will suffer the greatest loss if he or she does

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not receive the Eligible Lot considering the totality of the circumstances including, among other 

things, the Lot Purchasers’ Amounts Paid and other investment in the Eligible Lot. To make 

this decision, the Receiver may require that potentially affected Lot Purchasers expeditiously 

submit additional information. The Receiver will assign to the other Lot Purchasers who do not 

receive the disputed Eligible Lot reasonably comparable lots from New Sanctuary Inventory 

considering the totality of the circumstances including, without limitation, the other Lot 

Purchasers’ Amounts Paid and the available New Sanctuary Inventory.

L. If the FTC consents to the engagement, the Receiver may engage third party 

consultants, claims administrators, or other professionals to assist with the administration and 

implementation of this settlement without further Court approval. This includes the authority 

for the Receiver to implement “pay-as-you-go” arrangements with such third parties, and to 

make such payments to third parties, without further Court approval.

M. Notwithstanding anything else herein, if a Consumer and/or Putative Consumer 

lack a document this Plan requires, the Receiver has discretion to accept a sworn declaration or 

other sufficient proof of the document’s contents in lieu of the missing document.

N. Notwithstanding anything else herein, if a deadline for any person or entity 

(including the Receiver) to take a particular act falls on a weekend or federal holiday, the 

deadline becomes the next calendar day that is not on a weekend or federal holiday.

O. Notwithstanding anything else herein, when this Plan requires the Receiver to 

provide a Lot Purchaser with the opportunity to purchase a lot from New Sanctuary Inventory, 

the Receiver will determine the Seller Deceptive Price for the assigned New Sanctuary Inventory 

lot based on the Seller Deceptive Prices for reasonably comparable lots not drawn from New 

Sanctuary Inventory, and then use that Seller Deceptive Price to determine the Purchase Price the 

Lot Purchaser must pay to purchase the lot.

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III. CONSUMER ELECTIONS

A. Within 150 days of the Effective Date, the Receiver will notify every person or 

entity that submitted a Claim Application whether it has approved the Claim Application. If the 

Receiver has denied the Claim Application, or has approved it with modifications, the Receiver 

will inform the Lot Purchaser accordingly. The Receiver will maintain a list of Putative 

Consumers, if any, whose claims it has denied because the Putative Consumer did not qualify as 

a Consumer, and provide that list, or an updated version of that list, to the FTC within ten days of 

any denial.

B. Within 150 days of the Effective Date, the Receiver also will notify Sanctuary 

Belize Lot Purchasers with approved Claim Applications (including those approved with 

modifications): (1) which New Sanctuary Lots they may elect to receive; (2) what the Purchase 

Price will be (including potential different Purchase Prices depending on Transfer Restrictions 

the Lot Purchaser can select); (3) the applicable Amount Paid; (4) the minimum amount of the 

First Sanctuary Distribution they will receive (unless that amount is below $1,000 on average per 

Sanctuary Belize Lot Purchaser, in which case the Receiver will report the minimum as zero);(5) 

the minimum amount of the Second Sanctuary Belize Distribution they will receive (if there are 

no successful appeals) (unless that amount is below $1,000 on average per Sanctuary Belize Lot 

Purchaser, in which case the Receiver will report the minimum as zero); (6) notice that 

subsequent distributions will occur if there are no successful appeals and additional collections 

occur, or if other funds remain in the Receivership following the First and Second Sanctuary 

Belize Distributions; and (7) the best estimate the Receiver can reasonably ascertain concerning 

the taxes (if any) the Lot Purchaser could owe to the Government of Belize with respect to the 

New Sanctuary Lot they may elect to receive (along with an appropriate clear and conspicuous 

disclaimer that the Receiver cannot guarantee the accuracy of its estimate).

1. To Sanctuary Belize Lot Purchasers who have submitted an approved 

Claim Application, the Receiver will also provide an Election Form, Disclosure Form Nos. 1 and

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2, a New Sanctuary Template Contract, and clear and simple instructions (including a clear and 

simple explanation of optional Transfer Restrictions).

2. If the Amount Paid is less than the Purchase Price, the New Sanctuary 

Template Contract will contain an initial summary page that explains all Reformed Contract Key 

Finance Terms, including precisely how the Reformed Contract Key Finance Terms will vary 

based on the whether the Lot Purchaser chooses a Transfer Restriction, and which one.

3. The materials in this subsection are subject to the FTC’s approval.

C. For Sanctuary Belize Lot Purchasers, the Election Form will include, at 

minimum: (1) the minimum possible amount of the First Sanctuary Distribution for the 

recipient of the Election Form; (2) the Receiver’s best reasonable estimate of the minimum range 

in which the Second Sanctuary Distribution Amount is likely to be (for the recipient of the 

Election Form) if no appeal of this Plan or any Final Order succeeds; (3) in general, the source of 

distributions; (4) the manner in which the Receiver will calculate distributions; (5) approximately 

when distributions will occur, to the extent this can be reasonably estimated or approximated; (6) 

the Transfer Restriction choices available to the Lot Purchaser (including the choice not to select 

a Transfer Restriction), and the Purchase Price (and corresponding monthly payment, if 

applicable) associated with each Transfer Restriction choice the Lot Purchaser may select 

(including the choice not to select a Transfer Restriction); (7) a mechanism (in plain language) 

pursuant to which the Consumer represents to the Receiver whether the Consumer is a PostFiling Transferee or a Post-Filing Transferor; and (8) clear instructions on how the Lot Purchaser 

must convey their choices to the Receiver in writing (including via the electronic submission of a 

completed Election Form). Additionally:

1. The Election Form will provide the Sanctuary Belize Lot Purchaser with a 

clear choice between (1) receiving Sanctuary Belize Consumer Redress, a New Sanctuary Lot, 

and a New Sanctuary Reformed Contract, or (2) receiving Sanctuary Belize ConsumerRedress,

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declining to receive a New Sanctuary Lot, disclaiming the Lot Purchaser’s right to a New 

Sanctuary Lot, and returning the lot in which the Lot Purchaser has an interest to the New 

Sanctuary Inventory with no further obligation. The amount of Sanctuary Belize Consumer 

Redress the Lot Purchaser will receive is the same regardless of the Lot Purchaser’s election.

2. The Election Form will clearly disclose and explain the Seller Deceptive 

Price used to calculate the Purchase Price so that Lot Purchasers can understand the discount 

applied to the Seller Deceptive Price.

3. For Sanctuary Belize Lot Purchasers choosing to receive Sanctuary Belize 

Consumer Redress, a New Sanctuary Lot, and a New Sanctuary Reformed Contract, and for 

whom the (a) principal owed to Subject Sellers for the Eligible Lot on November 7, 2018 (all 

amounts owed to Subject Sellers for the Eligible Lot other than interest, Belize General Sales 

Tax (“GST”), HOA fees, or other fees) is less than (b) the Purchase Price (calculated with the 

maximum potentially applicable Price Multiplier for Sanctuary Belize Lot Purchasers) minus the 

Amount Paid, the Election Form will provide the Lot Purchaser with the additional option of 

immediately paying such principal in order that the Eligible Lot would be fully paid. Lot 

Purchasers choosing this alternative must remit their payment to the Receiver with their Election 

Form via cashier’s check, or via wire transfer contemporaneously with the return of their 

Election Form to an account the Receiver identifies. If that occurs, the Lot Purchaser’s Amount 

Paid will increase as though the Lot Purchaser had made the additional payment on or before 

November 7, 2018. The Election Form will clearly disclose and explain this option, and provide 

the Lot Purchaser with the necessary information to choose it, including the amount the Lot 

Purchaser must remit to exercise the option and what effect the payment would have, including 

that the Eligible Lot would now be fully paid.

4. The Election Form may collect any other information that theReceiver 

may reasonably require.

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D. Within 180 days of the Effective Date, the Receiver will provide every Sanctuary 

Belize Lot Purchaser who has not returned an Election Form with Disclosure No. 3 (by both 

email and Mail). The Receiver will further inform Lot Purchasers who have not returned an 

Election Form that failure to timely return an Election Form and related materials will 

irrevocably waive rights potentially worth a substantial amount.

E. Within 190 days of the Effective Date, the Receiver will make reasonable efforts 

to reach, by phone, every Sanctuary Belize Lot Purchaser who has not returned an Election 

Form. If the Receiver reaches the Lot Purchaser, the Receiver will inform the Lot Purchaser 

that failure to timely return an Election Form and related materials will irrevocably waive rights 

potentially worth a substantial amount.

F. Within 210 days of the Effective Date, Sanctuary Belize Lot Purchasers who elect 

to participate in the Plan must return their Election Form and all related materials.

1. Sanctuary Belize Lot Purchasers electing to receive a New Sanctuary Lot 

must return their Election Form and an executed Disclosure No. 1.

2. Sanctuary Belize Lot Purchasers declining to receive a New Sanctuary Lot 

must return their Election Form and an executed Disclosure No. 2.

3. If a Sanctuary Belize Lot Purchaser returns an incomplete Election Form, 

or an Election Form without the correct properly executed disclosure, the Receiver will contact 

the Lot Purchaser as soon as reasonably possible, provide the Lot Purchaser with simple, clear 

instructions regarding how to correct the mistake, and warn the Lot Purchaser that he or shewill 

lose all rights if he or she fails to timely correct the mistake. The Lot Purchaser will have until 

240 days after the Effective Date to correct the mistake. If the Lot Purchaser does not timely 

correct the mistake, the Lot Purchaser becomes a Non-Participating Owner.

4. No later than twenty days after the Receiver receives a properly completed 

Election Form, the Receiver will provide the Sanctuary Belize Lot Purchaser with an original

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and an identical copy of a New Sanctuary Reformed Contract (executed by the Receiver). 

Sanctuary Belize Lot Purchasers who receive a New Sanctuary Reformed Contract executed by 

the Receiver must countersign the original and return it to the Receiver at the Receivership’s 

expense. When sending the Receiver-executed New Sanctuary Reformed Contract to the Lot 

Purchaser, the Receiver will include clear instructions (subject to FTC approval) about how to 

return a fully-executed New Sanctuary Reformed Contract to the Receiver either by Mail or 

electronically through a widely-used online platform for collecting electronic signatures. The 

Receiver will also include a prepaid, pre-addressed Mail envelope that provides overnight 

service (or, if the Lot Purchaser is outside the United States, service within two business days).

5. Sanctuary Belize Lot Purchasers must return a countersigned New 

Sanctuary Reformed Contract within twenty days of receiving it. If a Sanctuary Belize Lot 

Purchaser fails to countersign and timely return a Receiver-executed New Sanctuary Reformed 

Contract, the Lot Purchaser forfeits any rights under this Plan and becomes a Non-Participating 

Owner with respect to the Eligible Lot at issue.

6. To avoid such a result, when delivering the Receiver-executed New 

Sanctuary Reformed Contract to the Sanctuary Belize Lot Purchaser, the Receiver will include a 

clear and conspicuous warning (subject to FTC approval) along with the contract. Additionally, 

if the Receiver has not received a countersigned New Sanctuary Reformed Contract from a Lot 

Purchaser three business days before it is due, the Receiver must contact the Sanctuary Belize 

Lot Purchaser by phone and email to solicit the immediate return of the fully executed Sanctuary 

Belize Reformed Contract.

G. Within 275 days of the Effective Date, the Receiver will assign each Kanantik Lot 

Purchaser a reasonably comparable lot from New Sanctuary Inventory considering the totality of 

the circumstances including, without limitation, the Lot Purchaser’s Amount Paid and the 

available New Sanctuary Inventory.

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H. Within 275 days of the Effective Date, the Receiver also will notify Kanantik Lot 

Purchasers with approved Claim Applications (including those approved with modifications):

(1) which New Sanctuary or Kanantik lots they may elect to receive; (2) what the Purchase 

Prices would be (including potential different Purchase Prices depending on Transfer 

Restrictions the Lot Purchaser can select); (3) the applicable Amount Paid; (4) the best estimate 

the Receiver can reasonably ascertain concerning the taxes (if any) the Lot Purchaser could owe 

to the Government of Belize with respect to the Kanantik Lot they may elect to receive (along 

with an appropriate clear and conspicuous disclaimer that the Receiver cannot guarantee the 

accuracy of its estimate); (5) the minimum amount of the First Kanantik Distribution (unless that 

amount is below $1,000 on average per Kanantik Lot Purchaser, in which case, the Receiver will 

report the minimum as zero); and (6) the best estimate the Receiver can reasonably ascertain 

concerning the taxes (if any) the Lot Purchaser could owe to the Government of Belize with 

respect to the New Sanctuary Lot they may elect to receive (along with an appropriate clear and 

conspicuous disclaimer that the Receiver cannot guarantee the accuracy of its estimate).

1. The Receiver will also provide an Election Form to Kanantik Lot

Purchasers who have submitted an approved Claim Application for an Eligible Lot, along with 

Disclosure Form Nos. 1, 2 and 4, a New Sanctuary Template Contract, a Kanantik Template 

Contract, and clear and simple instructions (including a clear and simple explanation of optional 

Transfer Restrictions).

2. If the Amount Paid is less than the Purchase Price, the New Sanctuary 

Template Contract will contain an initial summary page that explains all Reformed Contract Key 

Finance Terms, including precisely how the Reformed Contract Key Finance Terms will vary 

based on whether the Lot Purchaser chooses a Transfer Restriction, and which one.

3. The materials in this subsection are subject to the FTC’s approval.

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I. For Kanantik Lot Purchasers, the Election Form will include, at minimum: (1) 

the manner in which the Receiver will calculate distributions; (2) in general, the source of 

distributions; (3) approximately when distributions will occur, to the extent this can be 

reasonably estimated or approximated; (4) the Transfer Restriction choices available to the Lot 

Purchaser (including the choice not to select a Transfer Restriction), and the Purchase Price (and 

corresponding monthly payment, if applicable) associated with each Transfer Restriction choice 

the Lot Purchaser may select (including the choice not to select a Transfer Restriction); (5) clear 

instructions on how the Lot Purchaser must convey their choices to the Receiver in writing 

(including via the electronic submission of a completed Election Form); (6) a mechanism (in 

plain language) pursuant to which the Consumer represents to the Receiver whether the 

Consumer is a Post-Filing Transferee or a Post-Filing Transferor; and (7) a clear and 

conspicuous warning that there may be no distributions, or no substantial distributions, to 

Kanantik Lot Purchasers due to the absence of material Kanantik Assets. Additionally:

1. The Election Form will provide the Kanantik Lot Purchaser with a clear 

choice between: (1) receiving Kanantik Consumer Redress, a New Sanctuary Lot, and a New 

Sanctuary Reformed Contract; (2) receiving Kanantik Consumer Redress, a Kanantik Lot, and a 

Kanantik Reformed Contract; or (3) declining to receive a lot, disclaiming the Kanantik Lot 

Purchaser’s right to a lot, returning the Kanantik Lot in which the Lot Purchaser has an interest 

to the Receiver with no further obligation, and receiving Kanantik Consumer Redress. The 

amount of Kanantik Consumer Redress the Lot Purchaser will receive is the same regardless of 

the Kanantik Lot Purchaser’s election.

2. The Election Form will clearly disclose and explain the Seller Deceptive 

Price used to calculate the Purchase Price so that Lot Purchasers can understand the discount 

applied to the Seller Deceptive Price.

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3. For Kanantik Lot Purchasers choosing to receive Kanantik Consumer 

Redress, a New Sanctuary Lot or a Kanantik Lot, and a New Sanctuary Reformed Contract or 

Kanantik Reformed Contract, and for whom the (a) principal owed to Subject Sellers for the 

Eligible Lot on November 7, 2018 (all amounts owed to Subject Sellers for the Eligible Lot other 

than interest, GST, HOA fees, or other fees) is less than (b) the Purchase Price (calculated with 

the maximum potentially applicable Price Multiplier for Kanantik Lot Purchasers) minus the 

Amount Paid, the Election Form will provide the Kanantik Lot Purchaser with the additional 

option of immediately paying such principal in order that the Eligible Lot would be fully paid. 

Lot Purchasers choosing this alternative must remit their payment to the Receiver with their 

Election Form via cashier’s check, or via wire transfer contemporaneously with the return of 

their Election Form to an account the Receiver identifies. If that occurs, the Lot Purchaser’s 

Amount Paid will increase as though the Lot Purchaser had made the additional payment on or 

before November 7, 2018. The Election Form will clearly disclose and explain this option, and 

provide the Lot Purchaser with the necessary information to choose it, including the amount the 

Lot Purchaser must remit to exercise the option and what effect the payment would have, 

including that the Eligible Lot would now be fully paid.

4. The Election Form may collect any other information that the Receiver 

may reasonably require.

J. Within 305 days of the Effective Date, the Receiver will provide every Kanantik 

Lot Purchaser who has not returned an Election Form with Disclosure No. 3 (by both email and 

Mail). The Receiver will further inform Kanantik Lot Purchasers who have not returned an 

Election Form that failure to timely return an Election Form and related materials will 

irrevocably waive rights potentially worth a substantial amount.

K. Within 315 days of the Effective Date, the Receiver will make reasonable efforts 

to reach, by phone, every Kanantik Purchaser that has not returned an Election Form. If the

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Receiver reaches the Kanantik Lot Purchaser, the Receiver will inform the Kanantik Lot 

Purchaser that failure to timely return an Election Form and related materials will irrevocably 

waive rights potentially worth a substantial amount.

L. Within 335 days of the Effective Date, Kanantik Lot Purchasers who elect to 

participate in the Plan must return their Election Form and all related materials.

1. Kanantik Lot Purchasers electing to receive a New Sanctuary Lot must 

return their Election Form and an executed Disclosure No. 1, and Kanantik Lot Purchasers 

electing to receive a Kanantik Lot must return their Election Form and an executed Disclosure 

No. 4.

2. Kanantik Lot Purchasers declining to receive a New Sanctuary Lot or a 

Kanantik Lot must return their Election Form and an executed Disclosure No. 2.

3. If a Kanantik Lot Purchaser returns an incomplete Election Form, or an 

Election Form without the correct properly executed disclosure, the Receiver will contact theLot 

Purchaser as soon as reasonably possible, provide the Lot Purchaser with simple, clear 

instructions regarding how to correct the mistake, and warn the Lot Purchaser that he or she will 

lose all rights if he or she fails to timely correct the mistake. The Lot Purchaser will have until 

365 days after the Effective Date to correct the mistake. If the Lot Purchaser does not timely 

correct the mistake, the Lot Purchaser becomes a Non-Participating Owner.

4. No later than twenty days after the Receiver receives a properly completed 

Election Form, the Receiver will provide the Kanantik Lot Purchaser with an original and an 

identical copy of a New Sanctuary Reformed Contract (executed by the Receiver) or Kanantik 

Reformed Contract (executed by the Receiver). Kanantik Lot Purchasers who receive a New 

Sanctuary Reformed Contract or Kanantik Reformed Contract executed by the Receiver must 

countersign the original and return it to the Receiver at the Receivership’s expense. When 

sending the Receiver-executed Reformed Contract to the Lot Purchaser, the Receiver will

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include clear instructions (subject to FTC approval) about how to return a fully-executed 

Reformed Contract to the Receiver either by Mail or electronically through a widely-used online 

platform for collecting electronic signatures. The Receiver will also include a prepaid, preaddressed Mail envelope that provides overnight service (or, if the Lot Purchaser is outside the 

United States, service within two business days).

5. Kanantik Lot Purchasers must return a countersigned Reformed Contract 

within twenty days of receiving it. If a Kanantik Lot Purchaser fails to countersign and timely 

return a Receiver-executed Reformed Contract, the Lot Purchaser forfeits any rights under this 

Plan and becomes a Non-Participating Owner with respect to the Eligible Lot at issue.

6. To avoid such a result, when delivering the Receiver-executed New 

Sanctuary Reformed Contract or Kanantik Reformed Contract to the Kanantik Lot Purchaser, the 

Receiver will include a clear and conspicuous warning (subject to FTC approval) along with the 

contract. Additionally, if the Receiver has not received a countersigned New Sanctuary 

Reformed Contract or Kanantik Reformed Contract from a Lot Purchaser three business days 

before it is due, the Receiver must contact the Kanantik Lot Purchaser by phone and email to 

solicit the immediate return of the fully executed Reformed Contract.

M. Once the Receiver receives an Election Form and related materials from a Lot 

Purchaser, the Receiver will promptly acknowledge receipt.

N. Nothing prohibits a Lot Purchaser from asserting rights to more than one Eligible 

Lot, and if the Receiver approves multiple Claim Applications submitted by the same Consumer 

for multiple Eligible Lots, nothing prohibits the Lot Purchaser from making different elections 

with respect to different Eligible Lots.

O. The only exception to deadlines associated with the claims election process isif, 

in the Receiver’s reasonable judgment following a written request from the Lot Purchaser, it 

would be equitable given the totality of the circumstances to provide the Lot Purchaser with a

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specified amount of additional time (communicated to the Lot Purchaser in writing) before the 

Receiver determines the Lot Purchaser has forfeited rights.

P. At any point, any Lot Purchaser with an approved Claim Application and rights to 

a New Sanctuary Lot, or that owns a New Sanctuary Lot, may exchange his or her rights to the 

New Sanctuary Lot with another Lot Purchaser, or assign them to another Lot Purchaser, 

pursuant to written terms to which both Lot Purchasers agree. Lot Purchasers who trade, sell, or 

otherwise Transfer New Sanctuary Lots (or rights to New Sanctuary Lots) among each other 

must promptly notify the Receiver of such transactions, and the terms of such transactions. 

Additionally, from 165 days after the Effective Date until the Termination Date, the Receiver 

will maintain a web page or internet portal (on its website or a New Sanctuary HOA website or 

web page) designed to facilitate transactions between Lot Purchasers desiring to exchange, trade 

or Transfer New Sanctuary Lots, or rights to New Sanctuary Lots, with other Lot Purchasers. 

The Receiver will take reasonable measures to inform Lot Purchasers about the web page or 

internet portal.

IV. REFORMED CONTRACTS

A. Lot Purchasers electing to receive a New Sanctuary Lot must execute a New 

Sanctuary Reformed Contract. Once a Lot Purchaser executes a New Sanctuary Reformed 

Contract, any prior contract between the Lot Purchaser and the Subject Sellers concerning the lot 

is void.

B. All New Sanctuary Reformed Contracts executed prior to the Termination Date 

must be substantially in a form approved by the Receiver and the FTC, and executed by both the 

Lot Purchaser and the Receiver (or Receiver Assignee).

C. All New Sanctuary Reformed Contracts must contain the following provisions:

(1) the Purchase Price; (2) an unambiguous statement the Lot Purchaser owns the New Sanctuary 

Lot; (3) Lot Purchaser consents to Interim New Sanctuary HOA Fees; (4) Lot Purchaser consents

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to New Sanctuary HOA rules, regulations, and assessments; and (5) consent to exclusive 

jurisdiction and venue (except as provided herein) in the District of Maryland. Additionally, if 

the Purchase Price is more than the Amount Paid, the New Sanctuary Reformed Contract also 

will include:

1. A Mortgage Note (attached to the New Sanctuary Reformed Contract) 

equal to the difference between the Purchase Price and the Amount Paid, reflecting theReformed 

Contract Key Finance Terms, and reflecting other standard terms that the Receiver may 

determine (subject to the FTC’s approval);

2. The Mortgage Note will provide that, notwithstanding anything else 

herein, if the Lot Purchaser is at least ninety days in arrears on any payments owed pursuant to 

the Mortgage Note, the Receiver (or Receiver Assignee) may initiate foreclosure proceedings in 

Belize in accordance with the law of Belize, and the Mortgage Note will otherwise be in a form 

that comports with the law of Belize; and

3. If the Lot Purchaser is current on the Mortgage Note, or less than ninety 

days in arrears on any payments owed pursuant to the Mortgage Note, the Lot Purchaser may 

seek any appropriate relief related to the Mortgage Note (or otherwise related to the New 

Sanctuary Reformed Contract) in the District of Maryland.

D. Lot Purchasers electing to receive a Kanantik Lot must execute a Kanantik 

Reformed Contract. Once a Lot Purchaser executes a Kanantik Reformed Contract, any prior 

contract between the Lot Purchaser and the Subject Sellers concerning the lot is void.

E. All Kanantik Reformed Contracts executed prior to the Termination Date must be 

substantially in a form approved by the Receiver and the FTC, and executed by both the Lot 

Purchaser and the Receiver (or Receiver Assignee).

F. All Kanantik Contracts must contain the following provisions: (1) the Purchase 

Price; (2) an unambiguous statement that the Lot Purchaser owns the Kanantik Lot; and (3)

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consent to exclusive jurisdiction and venue (except as provided herein) in the District of 

Maryland. Additionally, if the Purchase Price is more than the Amount Paid, the New 

Sanctuary Reformed Contract also will include:

1. A Mortgage Note (attached to the Kanantik Reformed Contract) equal to 

the difference between the Purchase Price and the Amount Paid, reflecting the Reformed 

Contract Key Finance Terms, and reflecting other standard terms that the Receiver may 

determine (subject to the FTC’s approval);

2. The Mortgage Note will provide that, notwithstanding anything else 

herein, if the Lot Purchaser is at least ninety days in arrears on any payments owed pursuant to 

the Mortgage Note, the Receiver (or Receiver Assignee) may initiate foreclosure proceedings in 

Belize in accordance with the law of Belize, and the Mortgage Note will otherwise be in a form 

that comports with the law of Belize; and

3. If the Lot Purchaser is current on the Mortgage Note, or less than ninety 

days in arrears on any payments owed pursuant to the Mortgage Note, the Lot Purchaser may 

seek any appropriate relief related to the Mortgage Note (or otherwise related to the Kanantik 

Reformed Contract) in the District of Maryland.

G. Notwithstanding anything else herein, Lot Purchasers who bought Contingent 

Lots in Sanctuary Belize will be treated as Lot Purchasers of an Eligible Lot in SanctuaryBelize 

(i.e., as a Sanctuary Belize Lot Purchaser). Also notwithstanding anything else herein, Lot 

Purchasers who bought Contingent Lots in Kanantik will be treated as Lot Purchasers of an 

Eligible Lot in Kanantik (i.e., as a Kanantik Lot Purchaser), except that the Receiver will not 

offer such Lot Purchasers of Contingent Lots the option of buying or retaining a lot in Kanantik.

H. Notwithstanding anything else herein, Eligible Prior Lot Purchasers who bought 

an Eligible Lot in Sanctuary Belize, but Transferred that Eligible Lot to another Lot Purchaser, 

will be treated as a Sanctuary Belize Lot Purchaser with an interest in the Eligible Lot at issue for

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the purpose of the Receiver’s determination of a comparable lot for the Eligible Prior Lot 

Purchaser. Also notwithstanding anything else herein, Eligible Prior Lot Purchasers who 

bought an Eligible Lot in Kanantik, but Transferred that Eligible Lot to another Lot Purchaser, 

will be treated as a Kanantik Lot Purchaser with an interest in the Eligible Lot at issue for the 

purpose of the Receiver’s determination of a comparable lot for the Eligible Prior Lot Purchaser, 

except that the Receiver will not offer such Lot Purchasers the option of buying or retaining a lot 

in Kanantik. Prior Lot Purchasers who are not Eligible Prior Lot Purchasers will not receive any 

compensation, rights or other relief under this Plan.

I. All Non-Participating Owners who are Putative Consumers and/or Consumers 

with interests in, or alleged interests in, Eligible Lots, are deemed to have ratified their existing 

contractual obligation with the Subject Sellers, unless the Eligible Lot in which the NonParticipating Owner has an interest in, or claims an interest in, is the subject of an executed New 

Sanctuary Reformed Contract pursuant to this Plan, in which case the Non-Participating Owner 

will no longer have an interest in the Eligible Lot.

1. The Receiver will maintain a list of Non-Participating Owners that have 

Ratified Contracts and, if they can be easily located or procured, copies of those Ratified 

Contracts. The Receiver (or Receiver Assignee) will have no obligation under such Ratified 

Contracts except to take reasonable measures to ensure that, if the Non-Participating Owner is a 

Consumer, the Non-Participating Owner has access to a lot.

2. Lots claimed by Non-Participating Owners that do not qualify as 

Consumers become New Sanctuary Inventory as of the Final Election Date. If the Receiver 

determines that a Non-Participating Owner does not qualify as a Consumer, the Receiver will 

take reasonable measures to notify the Non-Participating Owner promptly including email and 

Mail (and if the Non-Participating Owner does not respond, phone). The Non-Participating 

Owner may submit a Dispute Notice to the Receiver in accordance with the terms this Plan

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provides for such notices, and appeal any decision the Receiver makes concerning the Dispute 

Notice to this Court, also in accordance with the terms this Plan provides for such appeals.

J. Any Lot Purchaser that executes a New Sanctuary Reformed Contract or 

Kanantik Reformed Contract will receive title to the associated lot by operation of law if theLot 

Purchaser held title to the same physical plot in Belize on the Effective Date.

K. Any party to a New Sanctuary Reformed Contract, Kanantik Reformed Contract, 

or Ratified Contract (other than the Receiver or Receiver Assignee) is responsible for taxes 

associated with the lots subject to those contracts, regardless of what taxing authority imposes 

them, or when they were (or are) incurred. Any party to a New Sanctuary Reformed Contract, 

Kanantik Reformed Contract, or Ratified Contract (other than the Receiver or Receiver 

Assignee) is also responsible for any other cost, expense, fee or other obligation, regardless of 

their nature, associated with the lots subject to those contracts (except to the extent such 

obligations are modified or addressed herein).

L. At any time after the Effective Date, if the FTC consents to the exchange, the 

Receiver has authority to exchange New Sanctuary Inventory lots for any Assignable Investment 

Claim against any Subject Seller. Whether the Receiver effects any such exchange, or pursues 

Assignable Investment Claims it receives, if any, is subject to the Receiver’s discretion.

M. Immediately upon the Effective Date, and continuing throughout the 

implementation of this Plan, the Receiver will take reasonable measures to identify Putative 

Consumers and/or Consumers that may qualify as Post-Filing Transferors or Post-Filing 

Transferees. If the Receiver identifies potential Post-Filing Transferors or Post-Filing 

Transferees, or if the FTC notifies the Receiver that a Consumer and/or Putative Consumermay 

qualify as a Post-Filing Transferee or Post-Filing Transferor, the Receiver will promptly notify 

all Putative Consumers and/or Consumers involved (in a form and manner the FTC approves)

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that they may or may not have rights and/or obligations under this Plan, depending on what the 

Court subsequently decides. Furthermore:

1. The Receiver will process the claim at issue in accordance with this Plan, 

except that the Receiver will not make any distribution to the Putative Consumer and/or 

Consumer, or execute any New Sanctuary Reformed Contract or Kanantik Reformed Contract 

for the benefit of the Consumer or Putative Consumer, until the Court orders the Receiver to do 

so. Instead, the Receiver will hold any Assets that may belong to either the Post-Filing 

Transferee or Post-Filing Transferor, pending a Court ruling.

2. The Receiver will notify the Post-Filing Transferee and Post-Filing 

Transferor concerning the situation and, as soon as practical, request that the Court establish a 

procedure to resolve competing claims, if any, between the Post-Filing Transferee and PostFiling Transferor regarding their respective entitlement, if any, to rights and proceeds under this 

Plan.

3. Once the Receiver submits such a request to the Court, the Post-Filing 

Transferor, the Post-Filing Transferee, the FTC, and the Receiver will each have 14 days to 

submit views regarding whether, in fact, competing claims exist, and if so, what procedures the 

Court should employ to resolve them.

N. If an Eligible Prior Lot Purchaser has rights to an Eligible Lot under this Plan, 

regardless of whether the Eligible Prior Lot Purchaser submits an approved claim, any payment 

obligations another Lot Purchaser has or arguably has to the Eligible Prior Lot Purchaser 

regarding the Eligible Lot terminate by operation of law if that Lot Purchaser submits an 

approved claim, so no additional payments from the Lot Purchaser to the Eligible Prior Lot 

Purchaser will be due. Additionally, if: (1) a Lot Purchaser bought an Eligible Lot from an 

Ineligible Prior Lot Purchaser; (2) the Lot Purchaser has a balance owed, or arguably owed, to 

the Ineligible Prior Lot Purchaser; and (3) the Lot Purchaser’s claim to the Eligible Lot at issue is

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approved under this Plan, then any payment obligations the Lot Purchaser has or arguably has to 

the Ineligible Prior Lot Purchaser regarding the Eligible Lot terminate by operation of law, so no

additional payments from the Lot Purchaser to the Ineligible Prior Lot Purchaser will be due.

V. REQUIRED DISCLOSURES

A. All Redress Communications must clearly and conspicuously disclose deadlines, 

claims submission requirements, and risks associated with particular elections.

B. Lot Purchasers who elect to receive a New Sanctuary Lot must sign Disclosure 

No. 1, and separately initial all material portions. Lot Purchasers signing and initialing 

Disclosure No. 1 must also acknowledge, in a form acceptable to the FTC, that they had an 

opportunity to ask the Receiver for information and clarification regarding the Plan and their 

election before they made their election.

C. Lot Purchasers who elect to receive a Kanantik Lot must sign Disclosure No. 4, 

and separately initial all material portions. Lot Purchasers signing and initialing Disclosure No. 

4 must also acknowledge, in a form acceptable to the FTC, that they had an opportunity to ask 

the Receiver for information and clarification regarding the Plan and their election before they 

made their election.

D. Lot Purchasers who decline to receive a New Sanctuary Lot or Kanantik Lotmust 

sign Disclosure No. 2, and separately initial all material portions. Lot Purchasers signing and 

initialing Disclosure No. 2 must also acknowledge, in a form acceptable to the FTC, that they 

had an opportunity to ask the Receiver for information and clarification regarding the Plan and 

their election before they made their election.

E. The FTC must approve all Redress Communications.

VI. REVIEW PROCEDURES

A. With respect to any decision that, expressly or by implication, this Plan affords 

the Receiver discretion to make, the Receiver may make any reasonable decision consistent with 

the terms of this Plan, the Final Orders, and applicable law.

B. If a Consumer and/or Putative Consumer contend the Receiver has made an 

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unreasonable decision, or one inconsistent with the terms of this Plan, the Final Orders, or 

applicable law, the Consumer and/or Putative Consumer (with or without counsel) must provide 

the Receiver with a written Dispute Notice that: (1) identifies the decision the Consumer and/or 

Putative Consumer contend is unreasonable; (2) explains with reasonable specificity the reason 

or reasons that the Consumer and/or Putative Consumer contend the decision at issue adversely 

affects the Consumer and/or Putative Consumer; (3) includes a sworn declaration attesting that 

the decision is unreasonable and adversely affects the Consumer and/or Putative Consumer; (4) 

explains with reasonable specificity the basis for the view that the decision is unreasonable or 

inconsistent with the terms of this Plan, the Final Orders, or applicable law, and affects the 

Consumer and/or Putative Consumer; (5) clearly and specifically states what relief the Consumer 

and/or Putative Consumer seek; and (6) encloses any supporting evidence reasonably necessary 

to evaluate the dispute. Additionally:

1. The Consumer and/or Putative Consumer submitting the Dispute Notice 

must copy the FTC on the Dispute Notice itself and any attachments. The Consumer and/or 

Putative Consumer submitting the Dispute Notice and the Receiver also will copy the FTC on 

any response or other correspondence related to the Dispute Notice.

2. The Receiver may respond to, but is not required to respond to, any 

grievance, complaint or other dispute a Consumer and/or Putative Consumer raise, unless the 

Consumer and/or Putative Consumer have submitted a proper Dispute Notice.

3. If the Receiver receives a proper Dispute Notice, unless the Receiver, 

Consumer and/or Putative Consumer, and FTC agree in writing to a longer time, theReceiver

has ten days to respond by either (a) notifying the Consumer and/or Putative Consumer that it will 

provide the relief requested, or (b) notifying the Consumer and/or Putative Consumer it will take no 

action or an action different than that the Consumer requested, and providing the Consumer and/or 

Putative Consumer with the basis for its decision sufficient to facilitate review.

4. If the Receiver does not timely respond to a Dispute Notice the Consumer 

and/or Putative Consumer contend is complete and meritorious, or if the Consumer and/or 

Putative Consumer disagree with the Receiver’s response to the Dispute Notice, the Consumer 

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and/or Putative Consumer have ten days to file the dispute with the Court in accordance with 

applicable law and local rules. The Court will establish procedures for evaluating the dispute, 

but will not reverse or change the Receiver’s decision unless: (a) the Consumer and/or Putative 

Consumer submitted a proper Dispute Notice; (b) the Consumer and/or Putative Consumer 

complied with all applicable deadlines; (c) evidence shows that the Receiver acted unreasonably, 

or inconsistently with the terms of this Plan, the Final Orders, or applicable law; and (d) the act 

or decision at issue adversely affects the Consumer and/or Putative Consumer.

5. The provisions in this section governing Dispute Notices also apply to 

Non-Participating Owners that seek to challenge the Receiver’s determination that they do not 

qualify as Consumers.

C. Neither the submission of a Dispute Notice to the Receiver nor any appeal of the 

Receiver’s decision to this Court tolls or alters any deadlines in this Plan unless the Court orders 

otherwise.

VII. TRANSFER LIMITATIONS

A. The Receiver may not engage in any Transfer of any Asset with any Subject 

Seller except to acquire control over the Asset for the benefit of Lot Purchasers.

B. To engage in a Transfer of any Asset related to the Subject Matter of the 

case with a Covered Third Party, the Receiver must require that the Covered Third Party: 

(1) acknowledge in writing the Final Orders and this Plan; (2) not engage (directly or 

indirectly) in a Transfer of any Asset related to the Subject Matter of the case with any 

Subject Seller at any time; (3) undertake commercially reasonable measures to avoid 

engaging (directly or indirectly) in a Transfer of any Asset related to the Subject Matter of 

the case with any Subject Seller at any time, including, without limitation, commercially 

reasonable measures to determine the real party in interest in any potential Transfer of such 

Asset; and (4) accept jurisdiction and venue in the District of Maryland for any disputes.

C. For a Covered Third Party to engage in a Transfer of any Asset related to the 

Subject Matter of the case with a Covered Third Party, the Covered Third Party must require that 

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all parties to the Transfer: (1) acknowledge the Final Orders and this Order; (2) not engage 

(directly or indirectly) in a Transfer of any Asset related to the Subject Matter of the case with 

any Subject Seller at any time; (3) undertake commercially reasonable measures to avoid 

engaging (directly or indirectly) in a Transfer of any Asset related to the Subject Matter of the 

case with any Subject Seller at any time, including, without limitation, commercially reasonable 

measures to determine the real party in interest in any potential Transfer of any such Asset; and

(4) accept jurisdiction and venue in the District of Maryland for any disputes.

D. Any Transfer of any sort designed, in whole or in part, to prevent any party from 

becoming a Covered Third Party is prohibited, void, and ineffective. Any Transfer of any sort 

designed, in whole or in part, to defeat, limit, or change any obligation under this Plan of any 

Covered Third Party is prohibited, void, and ineffective. Any Transfer of any sort with the 

effect, in whole or in part, of defeating, limiting, or changing any obligation under this Plan of 

any Covered Third Party is prohibited, void, and ineffective.

VIII. DEVELOPMENT REQUIREMENTS

A. The Consumer Committee will continue operating pursuant to the Interim 

Receivership Management Order, ECF No. 559 (Aug. 23, 2019), for 180 days after the Final

Election Date. The same definition of Consumer Committee within the Interim Receivership 

Management Order, including the methods of appointment and removal of members, shall 

continue in force with the sole exception that the Consumer Committee will be expanded to 

include two additional members who are Kanantik Lot Purchasers but not also Sanctuary Belize 

Lot Purchasers (one who opposed Kanantik’s inclusion in the Receivership, and one who did 

not). These two additional members will be chosen and may be removed by the same methods 

as the other members of the Consumer Committee, as described in the Interim Receivership 

Management Order, which provides that “[t]he Receiver will select” all members of the 

Consumer Committee and “may change Committee membership periodically as the Receiver 

deems appropriate.”

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B. The Receiver will devise and implement a reasonable plan to convert the 

Consumer Committee into the New Sanctuary HOA.

1. Beginning on the date that the Consumer Committee ceases to operate, the 

New Sanctuary HOA will have rights and obligations substantively equivalent to comparable 

organizations in the United States, including the authority to collect dues and assessments from 

Consumers who executed a New Sanctuary Reformed Contract and Non-Participating Owners 

who own lots in New Sanctuary. However, prior to the date that the Consumer Committee 

ceases to operate, the New Sanctuary HOA will have no legal authority.

2. No later than 180 days after the Final Election Date, any Receivership 

Entity that holds rights or authority necessary for the New Sanctuary HOA to exercise rights or 

satisfy obligations equivalent to comparable organizations in the United States will Transfer 

those rights and authority to the New Sanctuary HOA by operation of law. Accordingly, any 

community governance or HOA functions that previously occurred through a Receivership 

Entity, or were intended to occur through a Receivership Entity, will now occur through the New 

Sanctuary HOA as of the date the Consumer Committee ceases to operate. The Receiver will

make preparations in advance to facilitate the Transfer and consolidation of HOA rights and 

obligations in the New Sanctuary HOA.

3. The New Sanctuary HOA will also have no liability for any alleged act or 

omission prior to the date the Consumer Committee ceases to operate including, without 

limitation, any alleged act or omission of any predecessor HOA.

C. Elections for New Sanctuary HOA Board positions must take place within 180 

days of the Final Election Date pursuant to a reasonable voting process pursuant to which only 

Consumers who (1) executed a New Sanctuary Reformed Contract or (2) are Non-Participating 

Owners will have voting rights. Consumers will cast one vote per lot.

D. Beginning thirty days after the Final Election Date, and continuing until 180 days 

after the Final Election Date, the Receiver (or Receiver Assignee) may assess New Sanctuary 

Owners and Non-Participating Owners an Interim New Sanctuary HOA Fee. Any Interim New 

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Sanctuary HOA Fees must be segregated and used only for the benefit of Consumers who 

executed a New Sanctuary Reformed Contract and Non-Participating Owners who own lots in

New Sanctuary.

E. All parts of Sanctuary Belize, New Sanctuary, or Kanantik that are not residential 

lots owned by Consumers who executed a New Sanctuary Reformed Contract, a Kanantik 

Reformed Contract, or who are a party to a Ratified Contract belong to the Receiver (or 

Receiver’s Assignee) for the benefit of the Receivership.

F. The Receiver will continue its efforts to liquidate all Assets it controls as 

expeditiously as circumstances permit. However, the Receiver may only sell or otherwise 

Transfer Sanctuary Belize or New Sanctuary to a Qualified Developer. The Receiver has 

discretion to sell or otherwise Transfer receivership Assets worth less than $100,000 prior to the 

Termination Date without further Court approval as long as the sale or other Transfer complies

with this Order and the Final Orders, although the Receiver may seek Court approval for such 

sales or Transfers. The Receiver must seek Court approval for larger sales or Transfers.

G. Except as this Order otherwise provides, nothing prevents the Receiver (or 

Receiver Assignee) from performing work (or engaging a Covered Third Party to performwork) 

beyond what a Qualified Developer must perform, as long as such additional work is funded 

solely through Interim New Sanctuary HOA Fees, or otherwise does not reduce the value of the 

Receivership.

H. Except as this Order otherwise provides, nothing prevents the New Sanctuary 

HOA from negotiating and implementing different or additional arrangements with a Qualified 

Developer once the New Sanctuary HOA has the legal authority to contract with a Qualified 

Developer.

IX. DISTRIBUTION PROCEDURES AND CONSTRUCTIVE TRUST

A. The Total Receivership Collections are held in constructive trust by the Receiver 

for the sole benefit of the Commission and Lot Purchasers, so that the Receiver can disburse 

Assets to the Lot Purchasers.

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B. The Receiver will make the First Sanctuary Distribution within thirty days ofthe 

Final Election Date.

C. The Receiver will make the Second Sanctuary Distribution within thirty days of 

the Second Sanctuary Distribution Date.

D. The Receiver will make additional distributions to Sanctuary Belize Lot 

Purchasers at reasonable intervals using the Sanctuary Distribution Formula (unless otherwise 

ordered by the Court) should (1) additional collections occur, (2) when the Sanctuary Holdback 

Amount becomes available to distribute, or (3) otherwise until the Receiver has distributed all 

Total Receivership Collections (including the Sanctuary Holdback Amount, when the Sanctuary 

Holdback Amount becomes available).

E. The Receiver will make all distributions to Sanctuary Belize Lot Purchasers 

pursuant to the Sanctuary Distribution Formula.

F. Notwithstanding anything else herein, the Receiver will not make the First 

Sanctuary Distribution or the Second Sanctuary Distribution without the FTC’s consent if the 

average amount distributed will be less than $1,000 on average per Sanctuary Belize Lot 

Purchaser.

G. The Receiver will make the First Kanantik Distribution within thirty days ofthe 

Final Election Date.

H. The Receiver will make the Second Kanantik Distribution within thirty days of 

the Second Kanantik Distribution Date.

I. The Receiver will make additional distributions to Kanantik Lot Purchasers at 

reasonable intervals using the Kanantik Distribution Formula (unless otherwise ordered by the 

Court) should (1) additional collections occur, or (2) when the Kanantik Holdback Amount 

becomes available to distribute.

J. The Receiver will make all distributions to Kanantik Lot Purchasers pursuant to 

the Kanantik Distribution Formula.

K. Notwithstanding anything else herein, the Receiver will not make the First 

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Kanantik Distribution or the Second Kanantik Distribution if the average amount distributedwill 

be less than $1,000 on average per Kanantik Lot Purchaser.

L. With each distribution, the Receiver will notify the Lot Purchaser: (1) they 

remain eligible to receive additional distributions if additional collections are obtained and can 

be distributed pursuant to this Plan; and (2) because they remain eligible to receive additional 

distributions, the Receiver should solicit updated contact information from the Lot Purchaser.

M. Notwithstanding anything else herein, if the Total Receivership Collections 

exceed the amount to which the FTC is entitled under the Final Orders, the Receiver will pause

distributions and seek leave of Court before making any further distributions. If appropriate, the 

Receiver will also seek leave of Court to establish a claims procedure for claims from parties 

other than Lot Purchasers.

N. The Receiver will distribute the Sanctuary Holdback Amount and Kanantik 

Holdback Amount within 120 days of the Termination Date.

X. ADDITIONAL PROVISIONS

A. The Court retains jurisdiction over this Plan for all purposes.

B. No one may knowingly misrepresent this Plan’s terms. Subject Sellers may not 

misrepresent this Plan’s terms, knowingly or otherwise. No one may obstruct the Receivership, 

including the implementation of this Plan.

C. The Receiver must take reasonable efforts to protect data Putative Consumers 

and/or Consumers provide pursuant to this Plan. The Receiver will maintain records of Putative 

Consumers and/or Consumers until the Termination Date, but destroy them within ninety days of 

the Termination Date. Nothing herein prohibits the FTC from obtaining any information from 

the Receiver, and the Receiver will respond to any written request for information from theFTC.

SO ORDERED, this day of , 2021.

___________________________________

UNITED STATES DISTRICT JUDGE

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