Exhibit 10.5

 

SHURGARD STORAGE CENTERS, INC.

 

NONQUALIFIED STOCK OPTION NOTICE OF GRANT

 

TO:    Name    Date of Grant:

 

This grant of an option to purchase              shares of Shurgard Storage
Centers, Inc. Class A Common Stock at the exercise price of (price) per share is
subject to all of the terms contained the Shurgard Storage Centers, Inc. 2000
Long-Term Incentive Plan (the “Plan”) which is incorporated herein by reference.
This grant is for a nonqualified stock option.

 

Statement of Option Activity: A statement showing your (grant date) stock option
grants is attached for your information.

 

Vesting and Option Term: The option shall vest and become exercisable and
terminate according to the following schedule (subject to earlier termination as
explained below under Termination):

 

Shares

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   Full Vest

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   Terminates

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             Shares vesting    Vest Date    Expiration Date
             Shares vesting    Vest Date    Expiration Date
             Shares vesting    Vest Date    Expiration Date
             Total Shares Granted          

 

All further vesting of the option shall cease upon termination of your service
with the Company for any reason.

 

Exercise of Option and Payment for Shares: The option may be exercised by
delivering to the Company a properly completed and signed notice of exercise in
the form prescribed by the Company, together with the exercise price for the
shares for which the option is exercised, which may be paid as follows:

 

(a) Cash, personal check, bank certified or cashier’s check;

 

(b) Delivery of Shares of Class A Common Stock of the Company held by you for a
period of at least six months having a fair market value at the time of
exercise, as determined in good faith by the Plan Administrator, equal to the
exercise price; or

 

(c) Delivery of a copy of the exercise notice together with irrevocable
instructions to a broker to promptly deliver to the Company an amount of sale or
loan proceeds sufficient to pay the exercise price.

 

 

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Withholding Taxes: As a condition to the exercise of the option, you shall make
such arrangements as the Company may require for the satisfaction of any
federal, state or local withholding tax obligations that may arise in connection
with such exercise.

 

Transfer of Option: You may only transfer the option by will, by the applicable
laws of descent and distribution, by gift, or by other transfer without
consideration to either (i) your spouse, child or grandchild (“Immediate Family
Member”) or (ii) any trust, partnership, or other entity in which you or such
Immediate Family Member has a substantial beneficial interest. Any other attempt
to transfer, assign, pledge, hypothecate or otherwise dispose of the option or
of any right or privilege conferred thereby, and any sale or levy or any
attachment or similar process upon the rights and privileges conferred hereby,
shall be null and void.

 

Termination: Unless earlier terminated as provided above under Vesting and
Option Term, the option will terminate (i) immediately upon termination of your
employment for cause, as defined in the Plan, (ii) three years after termination
of your employment as a result of retirement, early retirement at the Company’s
request, disability, or death or (iii) three months after termination of your
employment for any other reason.

 

Taxation of Options: Please review the Plan Summary for additional information
on the tax consequences related to your option. You should seek advice from your
own tax advisor when exercising the option and prior to the disposition of the
shares issued upon the exercise of the option.

 

Copies of the 2000 Long-Term Incentive Plan and Plan Summary are available on
the network under K:\Options\2000LTIP.doc and K:\Options\00SPD.doc for your
reference.