Schedule 1: Order of Priority for Distribution of Surplus

Priority Description
1st To the reasonable expenses of collection, enforcement and/or disposition and any other reasonable expenses incurred by the Secured Party.
2nd To the satisfaction of obligations secured by a Security Interest having priority over the Security Interest under which the enforcement is made.
3rd To the satisfaction of obligations secured by the Security Interest under which the enforcement is made; and
4th To the satisfaction of obligations secured by any subordinate Security Interest in or other interest in the Collateral subject to the Security Interest under which the enforcement is made.
5th To the Debtor or any other Person who is known by the Secured Party to be an owner of the Collateral subject to the Security Interest under which the enforcement is made.