Common use of Closing of Property Clause in Contracts

Closing of Property. Contributions In connection with the closing of Shurgard's contribution of each Property to the Partnership, in accordance with the Contribution Agreement, the Partnership shall reimburse Shurgard for 97% of the Carrying Value of such Property at the time such Property is contributed to the Partnership (or, with respect to certain adjustments to Carrying Value contemplated by the Contribution Agreement, following the contribution of such Property to the Partnership), with reimbursement funded through the Credit Facility and capital contributions by Fremont in proportion to the funding percentages described in Sections 2.1(a) and 2.2. The remaining 3% of Carrying Value will constitute a net capital contribution by Shurgard to the Partnership and appropriately be credited to Shurgard's Capital Account. For example, if Shurgard contributes a Property having a Carrying Value of $5,000,000, the Partnership shall reimburse Shurgard for $4,850,000 funded by $3,500,000 from the Credit Facility (70% of the Carrying Value) and $1,350,000 from Fremont capital contributions (90% of the Carrying Value remaining after reimbursement from the Credit Facility). Shurgard's capital account would accordingly be credited for $150,000 (reflecting 10% of such remaining Carrying Value).