Exhibit 10.5

# RENT-WAY, INC.

# STOCK OPTION AGREEMENT

THIS
AGREEMENT (Agreement) is made and entered into as of this «Day»
day of «Month» «Year», by and between Rent-Way, Inc., a
Pennsylvania corporation (the Company) and the undersigned employee (the
Optionee).

# WITNESSETH:

WHEREAS,
the Company has determined that an option to purchase shares of common stock of the
Company be granted to Optionee under the Rent-Way «PlanYear» Stock
Option Plan (the Plan); and

WHEREAS,
the Board of Directors of the Company or a committee thereof has approved the grant
evidenced hereby.

NOW,
THEREFORE, in consideration of the premises, the mutual promises and representations
contained in this Agreement, and intending to be legally bound, the parties agree as
follows:

|1. |  | Stock Option. The Company hereby grants to Optionee an option (the
               Option) to purchase, upon the terms and conditions set forth herein
               and in the Plan, that number of shares of common stock of the Company set forth
               on Exhibit A. Subject to the terms of the Plan and applicable law, the Option
               will be treated as an incentive stock option or as a non-qualified stock option
               (in each case as such terms are defined in the Plan) as set forth on Exhibit A.
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. |  | Terms of Stock Option. The Option is subject to the following terms and
               conditions:
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|a. |  | The
exercise price is set forth on Exhibit A.
|-- |  | ---------------------------------------------

|b. |  | The
Option will vest and be exercisable in the manner set forth on                Exhibit A.
|-- |  | --------------------------------------------------------------------------------------------

|c. |  | The
Option may be exercised in whole or in part at any time or from time to time
               for the amount vested within the period set forth on Exhibit A by
delivering a                written notice (in the form attached hereto) to the Company
and paying to the                Company the exercise price. Subject to paragraph (e)
below, if Optionee ceases                to be employed by, or ceases to be in the
service of the Company for any reason                other than death or disability,
Optionee will have the right to exercise the                Option at any time within
three months after such termination, but only to the                extent the Option was
exercisable at the date of such termination. Any portion                of the Option not
then exercised will immediately expire following such                three-month period.
In no event may the Option be exercised after its expiration                date.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|d. |  | The
Option may be exercised only by Optionee during his or her lifetime, except
               in the case of death or disability, in which case it may be exercised, in
whole                or in part, within one year following such death or disability to
the extent                Optionee could have exercised the Option as of the date of
death or disability,                by the person or persons who acquire the Option by
bequest or inheritance or by                the Optionees legal representative. In
no event may the Option be                exercised after its expiration date. The
determination of whether                Optionees employment with or service to the
Company has ceased due to                disability will be made by the Compensation
Committee of the Companys                Board of Directors or such other body
administering the Plan in accordance with                its terms.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|e. |  | Notwithstanding
the second sentence of paragraph (c) above, the Option will                expire
automatically and may not be exercised following the involuntary
               termination of Optionees employment with or service to the Company.
The                determination of whether Optionees employment with or service to
the                Company has been involuntarily terminated will be made by the
Compensation                Committee of the Companys Board of Directors or such
other body                administering the Plan in accordance with its terms.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|f. |  | The
exercise price will be payable to the Company upon the exercise of the
               Option either (i) in cash or by check, (ii) by delivery of Company common
stock                already owned by Optionee having a fair market value equal to the
exercise price                or (iii) by a combination of (i) and (ii) above. The Option
may also be                exercised by delivery to the Company of an irrevocable written
notice                instructing the Company to deliver the shares deliverable upon
exercise of the                Option to a broker selected by the Company, subject to the
brokers written                guarantee to deliver cash to the Company in the full
amount of the exercise                price due on the Options exercise. The fair
market value of stock                delivered in payment of the exercise price of the
Option will be determined as                of any date in the same manner as the
exercise price in accordance with the                terms of the Plan.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|g. |  | The
Option will expire automatically at 11:59 p.m. Erie, Pennsylvania local time
               on the expiration date as set forth on Exhibit A.
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|3. |  | Rights as Shareholder. Optionee will have no rights as a shareholder with
               respect to any shares covered by the Option until the date of the issuance of a
               stock certificate representing the shares acquired on exercise thereof.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | Investment Purpose. This Option is granted on the condition that the
               purchases of stock covered by the Option will be for investment purposes, and
               not with a view towards resale or distribution. However, in the event the stock
               subject to the Option is registered under the Securities Act of 1933, as
               amended, or a resale of stock without registration with the Securities and
               Exchange Commission would otherwise be permissible, such condition will be
               inoperative if, in the opinion of counsel for the Company, such condition is not
               required under the Securities Act of 1933 or any other applicable law,
               regulation, or rule of any governmental agency, national securities exchange or
               national securities association. All certificates for common stock issued by the
               Company pursuant to this Agreement may contain the following statement:
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
securities represented by this certificate have not been registered under any applicable
federal or state securities acts in reliance upon exemptions under those acts. These
securities may not be transferred unless the Company receives a satisfactory opinion of
counsel that such transfer has been registered or is exempt from registration under
applicable securities laws.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | No
Right to Continued Employment. Nothing in this agreement, the Plan or
                    any agreement or instrument delivered in connection herewith or
therewith                     confers upon Optionee the right to continue in the employ
of or continue to                     provide service to the Company or to be entitled to
any remuneration or benefits                     not set forth in this Agreement, the
Plan or any other agreement, or to                     interfere with or limit in any way
the right of the Company to terminate                     Optionees employment or
service.
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | Miscellaneous.
|-- |  | --------------

|a. |  | This Agreement is binding upon the parties and their heirs, legal
                    representatives, successors and assigns.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------

|b. |  | This Agreement is subject to the terms of the Plan in all respects. Any term or
                    provision hereof that is inconsistent with the Plan will be inoperative and the
                    Plan will control.
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|c. |  | The Option represented hereby is not transferable by the Optionee except by will
                    or the laws of descent and distribution.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------

|d. |  | The Agreement is governed by and will be construed in accordance with the laws
                    of the Commonwealth of Pennsylvania.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------

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IN
WITNESS WHEREOF, the Company has caused this Agreement to be signed by its duly authorized
officer and Optionee has signed this Agreement.

By: _______________________________
William E. Morgenstern

Title: Chief Executive Officer

__________________________________
Print Name of Optionee

__________________________________
Signature of Optionee

__________________________________
Address

__________________________________
Address

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# EXHIBIT A

Exercise
price of Option: $«ExercisePrice»

50%
vest at grant date

25% vest
one year from grant date

25
% vest two years from grant date

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# EXERCISE OF STOCK
OPTION AND DECLARATION

Pursuant
to the provisions of the stock option agreement entered into as of _______________, 200__
between Rent-Way, Inc. (the Company) and the undersigned as Optionee, I hereby
exercise the Option granted thereunder to the extent of _____shares of common stock of the
Company. I hereby make payment in full in accordance with the terms of the stock option
agreement.

Date: _____________, 20__

(Optionee Signature)

Social Security Number: