They are numbered in order.
Once these precedents are selected, once the agreement is exported they are converted into paragraphs that make up the agreement.
Only those precedents selected (have been ticked on left) are included in the exported agreement.
Precedents - once exported - are numbered according to the order they are in the exported document.
So for example, precedent 4 "Arbitration recital" becomes paragraph 3 in the exported document because precedent 3 "Collaborative recital" has not been selected or included in the agreement being drafted.