Proceeds of Liquidation. Net Liquidation Proceeds shall be applied and distributed in the following order of priority: (1) First, to the payment of or provision for the debts and liabilities of the Company (including loans from Members) and the expenses of liquidation in order of priority as provided by law, and to the creation of any reserves which may be reasonably necessary for any contingent or unforeseen liabilities or obligations; (2) Second, pro rata to former Members in proportion to the undistributed balances of their Final Capital Accounts in payment of their Final Capital Account, plus accrued but unpaid interest thereon calculated in accordance with Section 19 above; (3) Third, to the Members in repayment of their Capital Accounts in the Company; and (4) Finally, to the Members in proportion to their respective Interests in the Company as set forth on Schedule A.
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Sources: Operating Agreement (Bloomfield Bakers, a California Limited Partnership), Operating Agreement (Bloomfield Bakers, a California Limited Partnership)