Form of Restricted Share Unit Grant Agreement for Non-Employee Trustees under the CubeSmart 2007 Equity Incentive Plan

Restricted Share Units/ Non-transferability

The grant is an award of the number of Restricted Share Units as set forth on the cover sheet, subject to the vesting conditions described below (the “Grant”).

Your Restricted Share Units may not be transferred, assigned, pledged or hypothecated, whether by operation of law or otherwise, nor may the Restricted Share Units be made subject to execution, attachment or similar process.

Issuance and
Vesting

Your Restricted Share Units vest on the earliest to occur of (a) the first anniversary of the Grant Date, (b) the date of the 20__ Annual Meeting of Shareholders, and (c) the date you resign or retire from service on the Board.  

Within thirty (30) days following the date on which a Restricted Share Unit vests hereunder, the Company will, in settlement of such vested Restricted Share Unit, issue to you one (1) Share.

Other than pursuant to the terms of this Agreement, no additional Restricted Share Units will vest after your service has terminated for any reason.

Change in Control

In the event of a Change in Control, where the Company is not the surviving corporation and ultimate parent company, subject to your continued service through the Change in Control, your unvested Restricted Shares shall vest immediately prior to the Change in Control.

Termination by Death or Disability

If your service terminates as a result of your death or due to your “Disability,” then your unvested Restricted Share Units will become fully vested as of your date of termination.  

For purposes of this Agreement, the term “Disability” shall have the meaning assigned to such term in the Plan.

Forfeiture of Unvested Restricted Share Units

Except as provided in this Agreement or the Plan, in the event that your service terminates for any reason other than your death or Disability, you will forfeit to the Company all unvested Restricted Share Units.  For the avoidance of doubt, in connection with a termination for “Cause” you will forfeit all then-outstanding Restricted Share Units to the Company for no consideration.

For purposes of this Agreement, the term “Cause” shall have the meaning assigned to such term in the Plan.

Recoupment Policy

The Restricted Share Units granted pursuant to this Agreement and the Shares delivered to you pursuant to this Agreement shall be subject to any clawback policy maintained by the Company or any Affiliate from time to time as necessary to comply with applicable law or exchange listing requirements.

Withholding
Taxes

You agree, as a condition of this Grant, that you will make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the issuance of Shares under this Grant.  In the event that the Company determines that any federal, state, local or foreign tax or withholding payment is required relating to the issuance of Shares arising from this grant, the Company shall have the right to: (i) require you to make a cash payment to the Company, (ii) withhold such amounts from other payments due to you from the Company or any Affiliate, or (iii) withhold a number of Shares otherwise issuable to you having an aggregate Fair Market Value equal to the amount of the withholding or other taxes due.

Retention Rights

This Agreement does not give you the right to be retained by the Company (or any parent, Subsidiaries or Affiliates) in any capacity.  Furthermore, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate your service with the Company at any time, with or without Cause.

No Impact on Other Benefits

The value of your Restricted Share Units is not part of your normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

Dividend Equivalents

On each of the Company’s regular dividend payment dates occurring after the Grant Date and prior to the date on which Shares are issued to you in respect of the Restricted Share Units granted hereunder, the Company shall credit to a bookkeeping account, solely for the purposes of recordkeeping, a number of Restricted Share Units equal to the quotient of (x) divided by (y), where (x) is an amount equal to the dividends payable with respect to the number of Shares underlying the outstanding Restricted Share Units subject to this Grant, and (y) is the closing price of the Shares on such dividend payment date, rounded down to the nearest whole Restricted Share Unit.  On each applicable

vesting date of the Restricted Share Units, Restricted Share Units credited to the bookkeeping account (“Dividend Equivalents”) shall vest or be forfeited, as applicable, to the extent that the Restricted Share Units to which they relate vest or are forfeited.  Vested Dividend Equivalents shall be paid in Shares at the same time and subject to the same terms as the underlying vested Restricted Share Units.

Shareholder Rights

You do not have the right to vote the Shares in respect of your Restricted Share Units, and you do not have any of the rights of a shareholder with respect to the Restricted Share Units, unless and until the Shares relating to the Restricted Share Units are issued to you.  Any distributions of stock or other property you receive as a result of any split, stock dividend, combination of Shares or other similar transaction shall be deemed to be a part of the Shares and subject to the same conditions and restrictions applicable thereto. You do not have the right to make an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended.

Adjustments

In the event of a split, a dividend or a similar change in the Shares, the number of Shares covered by this Grant may be adjusted (pursuant to the Plan.  Your Restricted Share Units shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.

Successors and Assigns

The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon you and your beneficiaries, executors, administrators and the person(s) to whom the Restricted Share Units may be transferred by will or the laws of descent or distribution.

The Plan

The Plan is discretionary and may be amended, canceled or terminated by the Company at any time, in its discretion.  The Grant of the Restricted Share Units under this Agreement does not create any contractual right or other right to receive any Restricted Share Units or other grants in the future. Future grants, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of your service with the Company.

The text of the Plan is incorporated in this Agreement by reference. Except as otherwise noted, capitalized terms used in this Agreement, and not otherwise defined in this Agreement, have the meaning set forth in the Plan.

This Agreement and the Plan constitute the entire understanding between you and the Company with regard to the Restricted Share

Units granted pursuant to this Agreement. Any prior agreements, commitments or negotiations concerning the Restricted Share Units to which this Agreement applies, are superseded.

Notices

Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Corporate Secretary of the Company at the Company’s principal corporate offices. Any notice required to be delivered to you under this Agreement shall be in writing and addressed to you at your address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

Applicable Law

This Agreement will be interpreted and enforced under the laws of the State of Maryland, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.

Severability

The invalidity or unenforceability of any provision of this Agreement or the Plan shall not affect the validity or enforceability of any other provision of this Agreement or the Plan, and each provision of this Agreement and the Plan shall be severable and enforceable to the extent permitted by law.

Data Privacy

In order to administer the Plan, the Company may process personal data about you. Such data includes, but is not limited to, the information provided in this Agreement and any changes thereto, other appropriate personal and financial data about you such as home address and business addresses and other contact information, payroll information and any other information that might be deemed appropriate by the Company to facilitate the administration of the Plan.

By accepting this Grant, you give explicit consent to the Company to process any such personal data. You also give explicit consent to the Company to transfer any such personal data outside the country in which you work or are employed, including, with respect to non-U.S. resident Grantees, to the United States, to transferees who shall include the Company and other persons who are designated by the Company to administer the Plan.

Consent to Electronic Delivery

The Company may choose to deliver certain statutory materials relating to the Plan in electronic form. By accepting this Grant, you agree that the Company may deliver the Plan prospectus and the Company’s annual report to you in an electronic format. If at any time you would prefer to receive paper copies of these documents, as you are entitled to, the Company would be pleased to provide copies. Please contact the Corporate Secretary of the Company to request paper copies of these documents.