Document:

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                                                                  EXHIBIT 10.4

                             PRICE ENTERPRISES, INC.

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT, dated as of _______, 2001 (this
"AGREEMENT"), among Warburg, Pincus Equity Partners, L.P., a Delaware limited
partnership; Warburg, Pincus Netherlands Equity Partners I, C.V., a Netherlands
limited partnership; Warburg, Pincus Netherlands Equity Partners II, C.V., a
Netherlands limited partnership; and Warburg, Pincus Netherlands Equity Partners
III, C.V., a Netherlands limited partnership (collectively, the "INVESTORS"),
and Price Enterprises, Inc., a Maryland corporation (the "COMPANY").

                                 R E C I T A L S

     WHEREAS, the Investors have, pursuant to the terms of that certain
Securities Purchase Agreement, dated as of March __, 2001, by and among the
Company and the Investors (the "PURCHASE AGREEMENT"), agreed to purchase shares
of 9% Series B Junior Convertible Redeemable Preferred Stock, par value $0.0001
per share, of the Company (the "SERIES B PREFERRED STOCK") and warrants to
purchase an aggregate of 2,500,000 shares of Common Stock of the Company, par
value $0.0001 per share ("COMMON STOCK"), at an exercise price of $8.25 per
share (the "WARRANTS"); and

     WHEREAS, the shares of Series B Preferred Stock are convertible into shares
of Common Stock; and

     WHEREAS, the Company has agreed, as a condition precedent to the Investors'
obligations under the Purchase Agreement, to grant the Investors certain
registration rights; and

     WHEREAS, the Company and the Investors desire to define the registration
rights of the Investors on the terms and subject to the conditions herein set
forth.

     NOW, THEREFORE, in consideration of the foregoing premises and for other
good and valuable consideration, the parties hereby agree as follows:

SECTION 1. DEFINITIONS

     As used in this Agreement, the following terms have the respective meanings
set forth below:

     AFFILIATE: shall mean any Person or entity, directly or indirectly
controlling, controlled by or under common control with such Person or entity;

     COMMISSION: shall mean the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act;

     EXCHANGE ACT: shall mean the Securities Exchange Act of 1934, as amended;

     HOLDER: shall mean any holder of Registrable Securities;

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     INITIATING HOLDER: shall mean the Investors;

     PERMITTED TRANSFEREE: shall mean (a) an Affiliate or constituent partner of
a Holder (including limited partners, retired partners, and spouses, ancestors,
descendants and other members of such partners' immediate families, and trusts
for the benefit of any such party) or (b) any Person who acquires at least
[1,000,000] shares of Registrable Securities (as appropriately adjusted for
stock splits, combinations, recapitalizations and the like); PROVIDED, HOWEVER,
with respect to the Warrant and the shares of Common Stock issuable upon the
exercise of the Warrant, "PERMITTED TRANSFEREE" shall mean any Person;

     PERSON: shall mean an individual, partnership, joint-stock company,
corporation, trust or unincorporated organization, and a government or agency or
political subdivision thereof;

     REGISTER, REGISTERED and REGISTRATION: shall mean a registration effected
by preparing and filing a registration statement in compliance with the
Securities Act (and any post-effective amendments filed or required to be filed)
and the declaration or ordering of effectiveness of such registration statement;

     REGISTRABLE SECURITIES: shall mean (A) shares of Common Stock issuable upon
conversion of the Series B Preferred Stock, (B) shares of Common Stock issuable
upon exercise of the Warrant, (C) any additional shares of Common Stock acquired
by the Investors and (D) any capital stock of the Company issued as a dividend
or other distribution with respect to, or in exchange for or in replacement of,
the Warrant, the shares of Series B Preferred Stock or Common Stock referred to
in clause (A), (B) or(C);

     REGISTRATION EXPENSES: shall mean all expenses incurred by the Company in
compliance with Sections 2(a) and (b) hereof, including, without limitation, all
registration and filing fees, printing expenses, fees and disbursements of
counsel for the Company, fees and expenses of one counsel for all the Holders in
an amount not to exceed $15,000, blue sky fees and expenses and the expense of
any special audits incident to or required by any such registration (but
excluding the compensation of regular employees of the Company, which shall be
paid in any event by the Company);

     SECURITY, SECURITIES: shall have the meaning set forth in Section 2(1) of
the Securities Act;

     SECURITIES ACT: shall mean the Securities Act of 1933, as amended; and

     SELLING EXPENSES: shall mean all underwriting discounts and selling
commissions applicable to the sale of Registrable Securities and all fees and
disbursements of counsel for each of the Holders other than fees and expenses of
one counsel for all the Holders in an amount not to exceed $15,000.

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SECTION 2. REGISTRATION RIGHTS

     (a) REQUESTED REGISTRATION.

          (i) REQUEST FOR REGISTRATION. If the Company shall receive from an
     Initiating Holder, at any time a written request that the Company effect
     any registration with respect to all or a part of the Registrable
     Securities, the Company will:

               (A) promptly give written notice of the proposed registration,
          qualification or compliance to all other Holders; and

               (B) as soon as practicable, use its diligent best efforts to
          effect such registration (including, without limitation, the execution
          of an undertaking to file post-effective amendments, appropriate
          qualification under applicable blue sky or other state securities laws
          and appropriate compliance with applicable regulations issued under
          the Securities Act) as may be so requested and as would permit or
          facilitate the sale and distribution of all or such portion of such
          Registrable Securities as are specified in such request, together with
          all or such portion of the Registrable Securities of any Holder or
          Holders joining in such request as are specified in a written request
          received by the Company within ten (10) business days after written
          notice from the Company is given under Section 2(a)(i)(A) above;
          provided that the Company shall not be obligated to effect, or take
          any action to effect, any such registration pursuant to this Section
          2(a):

                    (v) In any particular jurisdiction in which the Company
               would be required to execute a general consent to service of
               process in effecting such registration, qualification or
               compliance, unless the Company is already subject to service in
               such jurisdiction and except as may be required by the Securities
               Act or applicable rules or regulations thereunder;

                    (w) After the Company has effected two (2) such
               registrations pursuant to this Section 2(a) and such
               registrations have been declared or ordered effective and the
               sales of such Registrable Securities shall have closed;

                    (x) If the Registrable Securities requested by all Holders
               to be registered pursuant to such request do not have an
               anticipated aggregate public offering price (before any
               underwriting discounts and commissions) of not less than
               $10,000,000;

                    (y) Within one hundred eighty (180) days of the effective
               date of the most recent registration pursuant to this Section 2
               in which securities held by the requesting Holder could have been
               included for sale or distribution; or

                    (z) If the Company shall furnish to such Holders a
               certificate, signed by the President or Chief Executive Officer
               of the Company, stating that in the good faith judgment of the
               Board of Directors it would be detrimental to the Company or its
               stockholders for a Registration Statement to be filed in the near
               future, then the Company's obligations under this Agreement shall
               be deferred for a period not to exceed one hundred twenty (120)
               days from the date of receipt of written request from the
               Initiating Holders; PROVIDED, HOWEVER, that the Company may not
               utilize this right more than once in any twelve (12) month
               period.

     The registration statement filed pursuant to the request of the Initiating
Holders may, subject to the provisions of Section 2(a)(ii) below, include other
securities of the Company

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which are held by Persons who, by virtue of agreements with the Company or
otherwise, are entitled to include their securities in any such registration
("OTHER STOCKHOLDERS").

          (ii) UNDERWRITING. If any Initiating Holder intends to distribute the
     Registrable Securities covered by their request by means of an
     underwriting, it shall so advise the Company as a part of its request made
     pursuant to Section 2(a).

     If Other Stockholders request such inclusion, the Initiating Holders shall
offer to include the securities of such Other Stockholders in the underwriting
and may condition such offer on their acceptance of the further applicable
provisions of this Section 2. The Initiating Holders whose shares are to be
included in such registration and the Company shall (together with all Other
Stockholders proposing to distribute their securities through such underwriting)
enter into an underwriting agreement in customary form with the representative
of the underwriter or underwriters selected for such underwriting by the
Initiating Holders and reasonably acceptable to the Company. Notwithstanding any
other provision of this Section 2(a), if such representative advises the Holders
in writing that marketing factors require a limitation on the number of shares
to be underwritten, the securities of the Company held by Other Stockholders
shall be excluded from such registration to the extent so required by such
limitation. If, after the exclusion of such shares, further reductions are still
required, the number of shares included in the registration by each Initiating
Holder shall be reduced on a pro rata basis (based on the number of shares held
by such Initiating Holder), by such minimum number of shares as is necessary to
comply with such request. No Registrable Securities or any other securities
excluded from the underwriting by reason of the underwriter's marketing
limitation shall be included in such registration. If any Other Stockholder who
has requested inclusion in such registration as provided above disapproves of
the terms of the underwriting, such person may elect to withdraw therefrom by
written notice to the Company, the underwriter and the Initiating Holders. The
securities so withdrawn shall also be withdrawn from registration. If the
underwriter has not limited the number of Registrable Securities or other
securities to be underwritten, the Company and officers and directors of the
Company may include its or their securities for its or their own account, in
such registration if the representative so agrees and if the number of
Registrable Securities and other securities which would otherwise have been
included in such registration and underwriting will not thereby be limited.

     (b) COMPANY REGISTRATION.

          (i) INCLUSION IN REGISTRATION. If the Company shall determine to
     register any of its equity securities either for its own account or for the
     account of Other Stockholders, other than a registration relating solely to
     employee benefit plans, or a registration relating solely to a Commission
     Rule 145 transaction, or a registration on any registration form which does
     not permit secondary sales or does not include substantially the same
     information as would be required to be included in a registration statement
     covering the sale of Registrable Securities, the Company will:

               (A) promptly give to each of the Holders written notice thereof
          (which shall include a list of the jurisdictions in which the Company
          intends to attempt to qualify such securities under the applicable
          blue sky or other state securities laws); and

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               (B) include in such registration (and any related qualification
          under blue sky laws or other compliance), and in any underwriting
          involved therein, all the Registrable Securities specified in a
          written request or requests, made by the Holders within ten (10)
          business days after receipt of the written notice from the Company
          described in Section 2(b)(i)(A) above, except as set forth in Section
          2(b)(ii) below. Such written request may specify all or a part of the
          Holders' respective Registrable Securities.

          (ii) UNDERWRITING. If the registration of which the Company gives
     notice is for a registered public offering involving an underwriting, the
     Company shall so advise each of the Holders as a part of the written notice
     given pursuant to Section 2(b)(i)(A). In such event, the right of each of
     the Holders to registration pursuant to this Section 2(b) shall be
     conditioned upon such Holders' participation in such underwriting and the
     inclusion of such Holders' Registrable Securities in the underwriting to
     the extent provided herein; PROVIDED, HOWEVER, that the Investors shall not
     be required to participate in such underwriting if the Investors notify the
     Company that they are seeking registration of their shares solely to enable
     a distribution of such shares to their partners or their Affiliates'
     partners. The Holders whose shares are to be included in such registration
     (other than the Investors, if the Investors elect not to participate in
     such underwriting) shall (together with the Company and the Other
     Stockholders distributing their securities through such underwriting) enter
     into an underwriting agreement in customary form with the representative of
     the underwriter or underwriters selected for underwriting by the Company.
     Notwithstanding any other provision of this Section 2(b), if such
     representative determines that marketing factors require a limitation on
     the number of shares to be underwritten, the representative may (subject to
     the allocation priority set forth below) limit the number of Registrable
     Securities to be included in the registration and underwriting to not less
     than fifty percent (50%) of the shares included therein (based on the
     number of shares). The Company shall immediately advise all holders of
     securities of the Company requesting registration of such limitation, and
     the number of shares of such securities that are entitled to be included in
     the registration and underwriting shall be allocated in the following
     manner: The securities of the Company held by officers, directors and Other
     Stockholders of the Company (other than Registrable Securities and other
     than securities held by holders who by contractual right demanded such
     registration ("DEMANDING HOLDERS")) shall be excluded from such
     registration and underwriting to the extent required by such limitation,
     and, if a limitation on the number of shares is still required, the number
     of shares that may be included in the registration and underwriting by each
     of the Holders shall be reduced, on a pro rata basis (based on the number
     of shares held by such Holder), by such minimum number of shares as is
     necessary to comply with such limitation. If any of the Holders or any
     officer, director or Other Stockholder disapproves of the terms of any such
     underwriting, he may elect to withdraw therefrom by written notice to the
     Company and the underwriter. Any Registrable Securities or other securities
     excluded or withdrawn from such underwriting shall be withdrawn from such
     registration.

     (c) FORM S-3. The Investors shall hereby have the right to, from time to
time and in their sole discretion, request an unlimited number of registrations
on Form S-3 (such requests shall be in writing and shall state the number of
shares of Registrable Securities to be disposed of and the intended method of
disposition of shares by such Holders), subject only to the following:

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          (i) The Company shall not be required to effect a registration
     pursuant to this Section 2(c) unless the Holder or Holders requesting
     registration propose to dispose of shares of Registrable Securities having
     an aggregate price to the public (before deduction of underwriting
     discounts and expenses of sale) of more than $5,000,000.

          (ii) The Company shall not be required to effect a registration
     pursuant to this Section 2(c) within one hundred eighty (180) days of the
     effective date of the most recent registration pursuant to this Section 2
     in which securities held by the requesting Holder could have been included
     for sale or distribution.

          (iii) The Company shall not be required to effect a registration
     pursuant to this Section 2(c) if the Company shall furnish to such Holders
     a certificate, signed by the President or Chief Executive Officer of the
     Company, stating that in the good faith judgment of the Board of Directors
     it would be detrimental to the Company or its stockholders for a
     Registration Statement to be filed in the near future, then the Company's
     obligations under this Agreement shall be deferred for a period not to
     exceed one hundred twenty (120) days from the date of receipt of written
     request from the Initiating Holders; PROVIDED, HOWEVER, that the Company
     may not utilize this right more than once in any twelve (12) month period.

          (iv) The Company shall not be obligated to effect any registration
     pursuant to this Section 2(c) in any particular jurisdiction in which the
     Company would be required to execute a general consent to service of
     process in effecting such registration, qualification or compliance, unless
     the Company is already subject to service in such jurisdiction and except
     as may be required by the Securities Act or applicable rules or regulations
     thereunder.

     The Company shall give written notice to all Holders of the receipt of a
request for registration pursuant to this Section 2(c) and shall provide a
reasonable opportunity for other Holders to participate in the registration,
provided that if the registration is for an underwritten offering, the terms of
Section 2(a)(ii) hereof shall apply to all participants in such offering.
Subject to the foregoing, the Company will use its best efforts to effect
promptly the registration of all shares of Registrable Securities on Form S-3 to
the extent requested by the Holder or Holders thereof for purposes of
disposition.

     (d) EXPENSES OF REGISTRATION. All Registration Expenses incurred in
connection with any registration, qualification or compliance pursuant to this
Section 2 shall be borne by the Company, and all Selling Expenses shall be borne
by the Holders of the securities so registered pro rata on the basis of the
number of their shares so registered; PROVIDED, HOWEVER, that if, as a result of
the withdrawal of a request for registration by any of the Holders, as
applicable, the registration statement does not become effective, the Holders
and Other Stockholders requesting registration may elect to bear the
Registration Expenses (pro rata on the basis of the number of their shares so
included in the registration request, or on such other basis as such Holders and
Other Stockholders may agree), in which case such registration shall not be
counted as a registration pursuant to Section 2(a)(i) or Section 2(c).

     (e) REGISTRATION PROCEDURES. In the case of each registration effected by
the Company pursuant to this Section 2, the Company will keep the Holders, as
applicable, advised in writing

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as to the initiation of each registration and as to the completion thereof. At
its expense, the Company will:

          (i) keep such registration effective for a period of one hundred
     twenty (120) days or until the Holders, as applicable, have completed the
     distribution described in the registration statement relating thereto,
     whichever first occurs; PROVIDED, HOWEVER, that (A) such 120-day period
     shall be extended for a period of time equal to the period during which the
     Holders, as applicable, refrain from selling any securities included in
     such registration in accordance with provisions in Section 2(k) hereof; and
     (B) in the case of any registration of Registrable Securities on Form S-3
     which are intended to be offered on a continuous or delayed basis, such
     120-day period shall be extended until all such Registrable Securities are
     sold, provided that Rule 415, or any successor rule under the Securities
     Act, permits an offering on a continuous or delayed basis, and provided
     further that applicable rules under the Securities Act governing the
     obligation to file a post-effective amendment permit, in lieu of filing a
     post-effective amendment which (y) includes any prospectus required by
     Section 10(a) of the Securities Act or (z) reflects facts or events
     representing a material or fundamental change in the information set forth
     in the registration statement, the incorporation by reference of
     information required to be included in (y) and (z) above to be contained in
     periodic reports filed pursuant to Section 12 or 15(d) of the Exchange Act
     in the registration statement;

          (ii) furnish such number of prospectuses and other documents incident
     thereto as each of the Holders, as applicable, from time to time may
     reasonably request;

          (iii) notify each Holder of Registrable Securities covered by such
     registration at any time when a prospectus relating thereto is required to
     be delivered under the Securities Act of the happening of any event as a
     result of which the prospectus included in such registration statement, as
     then in effect, includes an untrue statement of a material fact or omits to
     state a material fact required to be stated therein or necessary to make
     the statements therein not misleading in the light of the circumstances
     then existing; and

          (iv) furnish, on the date that such Registrable Securities are
     delivered to the underwriters for sale, if such securities are being sold
     through underwriters or, if such securities are not being sold through
     underwriters, on the date that the registration statement with respect to
     such securities becomes effective, (1) an opinion, dated as of such date,
     of the counsel representing the Company for the purposes of such
     registration, in form and substance as is customarily given to underwriters
     in an underwritten public offering and reasonably satisfactory to a
     majority in interest of the Holders participating in such registration,
     addressed to the underwriters, if any, and to the Holders participating in
     such registration and (2) a letter, dated as of such date, from the
     independent certified public accountants of the Company, in form and
     substance as is customarily given by independent certified public
     accountants to underwriters in an underwritten public offering and
     reasonably satisfactory to a majority in interest of the Holders
     participating in such registration, addressed to the underwriters, if any,
     and if permitted by applicable accounting standards, to the Holders
     participating in such registration.

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     (f) INDEMNIFICATION.

          (i) The Company will indemnify each of the Holders, as applicable,
     each of its officers, directors and partners, and each person controlling
     each of the Holders, with respect to each registration which has been
     effected pursuant to this Section 2, and each underwriter, if any, and each
     person who controls any underwriter, against all claims, losses, damages
     and liabilities (or actions in respect thereof) arising out of or based on
     any untrue statement (or alleged untrue statement) of a material fact
     contained in any prospectus, offering circular or other document (including
     any related registration statement, notification or the like) incident to
     any such registration, qualification or compliance, or based on any
     omission (or alleged omission) to state therein a material fact required to
     be stated therein or necessary to make the statements therein not
     misleading, or any violation by the Company of the Securities Act or the
     Exchange Act or any rule or regulation thereunder applicable to the Company
     and relating to action or inaction required of the Company in connection
     with any such registration, qualification or compliance, and will reimburse
     each of the Holders, each of its officers, directors and partners, and each
     person controlling each of the Holders, each such underwriter and each
     person who controls any such underwriter, for any legal and any other
     expenses reasonably incurred in connection with investigating and defending
     any such claim, loss, damage, liability or action; PROVIDED, HOWEVER, that
     the Company will not be liable in any such case to the extent that any such
     claim, loss, damage, liability or expense arises out of or is based on any
     untrue statement or omission based upon written information furnished to
     the Company by the Holders or underwriter and stated to be specifically for
     use therein.

          (ii) Each of the Holders will, if Registrable Securities held by it
     are included in the securities as to which such registration, qualification
     or compliance is being effected, indemnify the Company, each of its
     directors and officers and each underwriter, if any, of the Company's
     securities covered by such a registration statement, each person who
     controls the Company or such underwriter, each Other Stockholder and each
     of their officers, directors, and partners, and each person controlling
     such Other Stockholder against all claims, losses, damages and liabilities
     (or actions in respect thereof) arising out of or based on any untrue
     statement (or alleged untrue statement) of a material fact contained in any
     such registration statement, prospectus, offering circular or other
     document made by such Holder in writing, or any omission (or alleged
     omission) to state therein a material fact required to be stated therein or
     necessary to make the statements by such Holder therein not misleading, and
     will reimburse the Company and such Other Stockholders, directors,
     officers, partners, persons, underwriters or control persons for any legal
     or any other expenses reasonably incurred in connection with investigating
     or defending any such claim, loss, damage, liability or action, in each
     case to the extent, but only to the extent, that such untrue statement (or
     alleged untrue statement) or omission (or alleged omission) is made in such
     registration statement, prospectus, offering circular or other document in
     reliance upon and in conformity with written information furnished to the
     Company by such Holder and stated to be specifically for use therein;
     PROVIDED, HOWEVER, that the obligations of each of the Holders hereunder
     shall be limited to an amount equal to the net proceeds to such Holder of
     securities sold as contemplated herein.

          (iii) Each party entitled to indemnification under this Section 2(f)
     (the "INDEMNIFIED PARTY") shall give notice to the party required to
     provide indemnification (the "INDEMNIFYING PARTY") promptly after such
     Indemnified Party has actual knowledge of any claim

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     as to which indemnity may be sought, and shall permit the Indemnifying
     Party to assume the defense of any such claim or any litigation resulting
     therefrom; provided that counsel for the Indemnifying Party, who shall
     conduct the defense of such claim or any litigation resulting therefrom,
     shall be approved by the Indemnified Party (whose approval shall not
     unreasonably be withheld) and the Indemnified Party may participate in such
     defense at such party's expense (unless the Indemnified Party shall have
     reasonably concluded that there may be a conflict of interest between the
     Indemnifying Party and the Indemnified Party in such action, in which case
     the fees and expenses of counsel shall be at the expense of the
     Indemnifying Party), and provided further that the failure of any
     Indemnified Party to give notice as provided herein shall not relieve the
     Indemnifying Party of its obligations under this Section 2 unless the
     Indemnifying Party is materially prejudiced thereby. No Indemnifying Party,
     in the defense of any such claim or litigation shall, except with the
     consent of each Indemnified Party, consent to entry of any judgment or
     enter into any settlement which does not include as an unconditional term
     thereof the giving by the claimant or plaintiff to such Indemnified Party
     of a release from all liability in respect to such claim or litigation.
     Each Indemnified Party shall furnish such information regarding itself or
     the claim in question as an Indemnifying Party may reasonably request in
     writing and as shall be reasonably required in connection with the defense
     of such claim and litigation resulting therefrom.

          (iv) If the indemnification provided for in this Section 2(f) is held
     by a court of competent jurisdiction to be unavailable to an Indemnified
     Party with respect to any loss, liability, claim, damage or expense
     referred to herein, then the Indemnifying Party, in lieu of indemnifying
     such Indemnified Party hereunder, shall contribute to the amount paid or
     payable by such Indemnified Party as a result of such loss, liability,
     claim, damage or expense in such proportion as is appropriate to reflect
     the relative fault of the Indemnifying Party on the one hand and of the
     Indemnified Party on the other in connection with the statements or
     omissions which resulted in such loss, liability, claim, damage or expense,
     as well as any other relevant equitable considerations. The relative fault
     of the Indemnifying Party and of the Indemnified Party shall be determined
     by reference to, among other things, whether the untrue (or alleged untrue)
     statement of a material fact or the omission (or alleged omission) to state
     a material fact relates to information supplied by the Indemnifying Party
     or by the Indemnified Party and the parties' relative intent, knowledge,
     access to information and opportunity to correct or prevent such statement
     or omission.

          (v) Notwithstanding the foregoing, to the extent that the provisions
     on indemnification and contribution contained in the underwriting agreement
     entered into in connection with any underwritten public offering
     contemplated by this Agreement are in conflict with the foregoing
     provisions, the provisions in such underwriting agreement shall be
     controlling.

          (vi) The foregoing indemnity agreement of the Company and Holders is
     subject to the condition that, insofar as they relate to any loss, claim,
     liability or damage made in a preliminary prospectus but eliminated or
     remedied in the amended prospectus on file with the Commission at the time
     the registration statement in question becomes effective or the amended
     prospectus filed with the Commission pursuant to Commission Rule 424(b)
     (the "FINAL PROSPECTUS"), such indemnity or contribution agreement shall
     not inure to the benefit of any underwriter or Holder if a copy of the
     Final Prospectus was furnished to the underwriter and was

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     not furnished to the person asserting the loss, liability, claim or damage
     at or prior to the time such action is required by the Securities Act.

     (g) INFORMATION BY THE HOLDERS.

          (i) Each of the Holders holding securities included in any
     registration shall furnish to the Company such information regarding such
     Holder and the distribution proposed by such Holder as the Company may
     reasonably request in writing and as shall be reasonably required in
     connection with any registration, qualification or compliance referred to
     in this Section 2.

          (ii) In the event that, either immediately prior to or subsequent to
     the effectiveness of any registration statement, any Holder shall
     distribute Registrable Securities to its partners, such Holder shall so
     advise the Company and provide such information as shall be necessary to
     permit an amendment to such registration statement to provide information
     with respect to such partners, as selling securityholders. Promptly
     following receipt of such information, the Company shall file an
     appropriate amendment to such registration statement reflecting the
     information so provided. Any incremental expense to the Company resulting
     from such amendment shall be borne by such Holder.

     (h) RULE 144 REPORTING.

     With a view to making available the benefits of certain rules and
regulations of the Commission which may permit the sale of restricted securities
to the public without registration, the Company agrees to:

          (i) make and keep public information available as those terms are
     understood and defined in Rule 144 under the Securities Act ("RULE 144");

          (ii) use its best efforts to file with the Commission in a timely
     manner all reports and other documents required of the Company under the
     Securities Act and the Exchange Act; and

          (iii) so long as any Holder owns any Registrable Securities, furnish
     to such Holder upon request, a written statement by the Company as to its
     compliance with the reporting requirements of Rule 144, and of the
     Securities Act and the Exchange Act, a copy of the most recent annual or
     quarterly report of the Company, and such other reports and documents so
     filed as such Holder may reasonably request in availing itself of any rule
     or regulation of the Commission allowing such Holder to sell any such
     securities without registration.

     (i) ASSIGNMENT. The registration rights set forth in this Section 2 may be
assigned, in whole or in part, to Permitted Transferees (who shall be bound by
all obligations of this Agreement).

     (j) TERMINATION. The registration rights set forth in this Section 2 shall
not be available to any Holder if, in the opinion of counsel to the Company, all
of the Registrable Securities then owned by such Holder could be sold in any
90-day period pursuant to Rule 144 (without giving effect to the provisions of
Rule 144(k)).

                                       10
<PAGE>

     (k) DISCONTINUANCE. The Investors agree that upon receipt of any notice
from the Company of the happening of any event of the kind described in Section
2(e)(iii), the Investors will, to the extent appropriate, discontinue their
disposition of Registrable Securities pursuant to the registration statement
relating to such Registrable Securities until their receipt of the copies of the
supplemented or amended prospectus that shall not include an untrue statement of
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances under which they were made and, if so directed by the Company,
will deliver to the Company all copies, other than permanent file copies, then
in their possession, of the prospectus relating to such Registrable Securities
current at the time of receipt of such notice.

SECTION 3. MISCELLANEOUS

     (a) DIRECTLY OR INDIRECTLY. Where any provision in this Agreement refers to
action to be taken by any Person, or which such Person is prohibited from
taking, such provision shall be applicable whether such action is taken directly
or indirectly by such Person.

     (b) GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York (without giving effect to the
choice of law principles thereof) which are applicable to contracts made and to
be performed entirely within such State.

     (c) SECTION HEADINGS. The headings of the sections and subsections of this
Agreement are inserted for convenience only and shall not be deemed to
constitute a part hereof.

     (d) NOTICES.

          (i) All communications under this Agreement shall be in writing and
     shall be delivered by hand or facsimile or mailed by overnight courier or
     by registered or certified mail, postage prepaid:

               (A) if to the Company, to Price Enterprises, Inc., 17140 Bernardo
          Center Drive, Suite 300, San Diego, California 92128, Attention: Gary
          B. Sabin and S. Eric Ottesen (facsimile: (858) 675-9405), with a copy
          to Scott N. Wolfe, Esq., Latham & Watkins, 12636 High Bluff Drive,
          Suite 300, San Diego, California, 92130 or at such other address as
          the Company may have furnished in writing to the Investors;

               (B) if to the Investors, at the address or facsimile number
          listed on Schedule I hereto, or at such other address or facsimile
          number as may have been furnished the Company in writing, with a copy
          to Steven A. Seidman, Esq., Willkie Farr & Gallagher, 787 Seventh
          Avenue, New York, NY 10019.

          (ii) Any notice so addressed shall be deemed to be given: if delivered
     by hand or facsimile, on the date of such delivery; if mailed by courier,
     on the first business day following the date of such mailing; and if mailed
     by registered or certified mail, on the third business day after the date
     of such mailing.

                                       11
<PAGE>

     (e) REPRODUCTION OF DOCUMENTS. This Agreement and all documents relating
thereto, including, without limitation, any consents, waivers and modifications
which may hereafter be executed may be reproduced by the Investors by any
photographic, photostatic, microfilm, microcard, miniature photographic or other
similar process and the Investors may destroy any original document so
reproduced. The parties hereto agree and stipulate that any such reproduction
shall be admissible in evidence as the original itself in any judicial or
administrative proceeding (whether or not the original is in existence and
whether or not such reproduction was made by the Investors in the regular course
of business) and that any enlargement, facsimile or further reproduction of such
reproduction shall likewise be admissible in evidence.

     (f) SUCCESSORS AND ASSIGNS. Subject to Section 2(i) hereof, this Agreement
shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties.

     (g) ENTIRE AGREEMENT; AMENDMENT AND WAIVER. This Agreement and the other
Transaction Documents (as defined in the Purchase Agreement) constitute the
entire understanding of the parties hereto and supersede all prior and
contemporaneous understandings and agreements among such parties with respect to
subject matter hereof. This Agreement may be amended, and the observance of any
term of this Agreement may be waived, with (and only with) the written consent
of the Company and the Investors holding a majority of the then outstanding
Registrable Securities.

     (h) SEVERABILITY. In the event that any part or parts of this Agreement
shall be held illegal or unenforceable by any court or administrative body of
competent jurisdiction, such determination shall not affect the remaining
provisions of this Agreement, which shall remain in full force and effect.

     (i) COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together shall be considered one and the same agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first set forth above.

                                  PRICE ENTERPRISES, INC.

                                  By:
                                     -------------------------------------------
                                     Name:
                                     Title:

                                  INVESTORS:

                                  WARBURG, PINCUS EQUITY PARTNERS, L.P.

                                  By:  Warburg, Pincus & Co.,
                                       General Partner

                                  By:
                                     -------------------------------------------
                                     Name:
                                     Title:

                                  WARBURG, PINCUS NETHERLANDS EQUITY PARTNERS I,
                                    C.V.

                                  By:  Warburg, Pincus & Co.,
                                       General Partner

                                  By:
                                     -------------------------------------------
                                     Name:
                                     Title:

                                  WARBURG, PINCUS NETHERLANDS EQUITY PARTNERS
                                    II, C.V.

                                  By:  Warburg, Pincus & Co.,
                                       General Partner

                                  By:
                                     -------------------------------------------
                                     Name:
                                     Title:

                                  WARBURG, PINCUS NETHERLANDS EQUITY PARTNERS
                                    III, C.V.

                                  By:  Warburg, Pincus & Co.,
                                       General Partner

                                  By:
                                     -------------------------------------------
                                     Name:
                                     Title:

<PAGE>

                                   SCHEDULE I

NAME AND ADDRESS OF INVESTOR
----------------------------

Warburg, Pincus Equity Partners, L.P.
466 Lexington Avenue
New York, NY 10019
Attention:  [_______]

Warburg, Pincus Netherlands Equity Partners I, C.V.
466 Lexington Avenue
New York, NY 10019
Attention:  [_______]

Warburg, Pincus Netherlands Equity Partners II, C.V.
466 Lexington Avenue
New York, NY 10019
Attention:  [_______]

Warburg, Pincus Netherlands Equity Partners III, C.V.
466 Lexington Avenue
New York, NY 10019
Attention:  [_______]<PAGE>

                                                                 EXHIBIT 10.5

THIS WARRANT AND THE SECURITIES ISSUABLE UPON ITS EXERCISE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
STATE SECURITIES LAW, AND MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER THE ACT OR IN A TRANSACTION WHICH, IN THE OPINION OF COUNSEL
REASONABLY SATISFACTORY TO PRICE ENTERPRISES, INC., QUALIFIES AS AN EXEMPT
TRANSACTION UNDER THE ACT AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER.

                             PRICE ENTERPRISES, INC.

                          COMMON STOCK PURCHASE WARRANT

     Price Enterprises, Inc., a Maryland corporation (the "Company"), hereby
certifies that, for value received, Warburg, Pincus Equity Partners, L.P. (the
"Holder"), or assigns, is entitled to purchase from the Company, subject to the
terms set forth below and in the Securities Purchase Agreement, dated as of
March __, 2001, by and among the Holder, the Company and certain parties named
therein (the "Purchase Agreement"), at any time and from time to time during the
period beginning on ____________, 2001 and ending on _____________, 2008 (the
"Expiration Date"), in whole or in part, an aggregate of two million five
hundred thousand (2,500,000) fully paid and non-assessable shares of Common
Stock, par value $.0001 per share ("Common Stock"), of the Company, at a
purchase price, subject to the provisions of Section 3 hereof, of $8.25 per
share (the "Purchase Price"). This Warrant is herein called the "Warrant."

     1. EXERCISE OF WARRANT. The purchase rights evidenced by this Warrant shall
be exercised by the Holder surrendering this Warrant, with the form of
subscription at the end hereof duly executed by the Holder, to the Company at
its office at 17140 Bernardo Center Drive, Suite 300, San Diego, California
92128, accompanied by payment of an amount (the "Exercise Payment") equal to the
Purchase Price multiplied by the number of shares being purchased pursuant to
such exercise, payable as follows: (a) by payment to the Company in cash, by
certified or official bank check, or by wire transfer of the Exercise Payment,
(b) at the option of the Company, by surrender to the Company for cancellation
of securities of the Company having a Market Price (as hereinafter defined) on
the date of exercise equal to the Exercise Payment; or (c) at the option of the
Company, by a combination of the methods described in clauses (a) and (b) above.
For purposes hereof, the term "Market Price" shall mean the average sales price
on the most recent trading day ending prior to the relevant time as reported on
the Nasdaq National Market of the applicable capital stock of the Company, or if
not then traded on the Nasdaq National Market, such average sales price as
reported on any exchange or quotation system over which the applicable capital
stock of the Company may be traded, or if not then traded over any exchange or
quotation system, then the market price of the applicable capital stock of the
Company on the relevant date as determined in good faith by the Board of
Directors of the Company.

     1.1. PARTIAL EXERCISE. This Warrant may be exercised for less than the full
number of shares of Common Stock, in which case the number of shares receivable
upon the

<PAGE>

exercise of this Warrant as a whole, and the sum payable upon the exercise of
this Warrant as a whole, shall be proportionately reduced. Upon any such partial
exercise, the Company at its expense will forthwith issue to the holder hereof a
new Warrant or Warrants of like tenor calling for the number of shares of Common
Stock as to which rights have not been exercised, such Warrant or Warrants to be
issued in the name of the holder hereof or his nominee (upon payment by such
holder of any applicable transfer taxes).

     2. DELIVERY OF STOCK CERTIFICATES ON EXERCISE. As soon as practicable after
the exercise of this Warrant and payment of the Purchase Price, and in any event
within ten (10) business days thereafter, the Company, at its expense, will
cause to be issued in the name of and delivered to the Holder a certificate or
certificates for the number of fully paid and non-assessable shares of Common
Stock to which the Holder shall be entitled upon such exercise, plus, in lieu of
any fractional share to which such holder would otherwise be entitled, cash in
an amount determined in accordance with Paragraph 3.9 hereof. The Company agrees
that the shares so purchased shall be deemed to be issued to the Holder as the
record owner of such shares as of the close of business on the date on which
this Warrant shall have been surrendered and payment made for such shares as
aforesaid.

     3. ANTI-DILUTION PROVISIONS AND OTHER ADJUSTMENTS. In order to prevent
dilution of the right granted hereunder, the Purchase Price shall be subject to
adjustment from time to time in accordance with this Paragraph 3. Upon each
adjustment of the Purchase Price pursuant to this Paragraph 3, the registered
Holder of this Warrant shall thereafter be entitled to acquire upon exercise, at
the Purchase Price resulting from such adjustment, the number of shares of
Common Stock obtainable by multiplying the Purchase Price in effect immediately
prior to such adjustment by the number of shares of Common Stock acquirable
immediately prior to such adjustment and dividing the product thereof by the
Purchase Price resulting from such adjustment.

     3.1. ADJUSTMENT FOR ISSUE OR SALE OF COMMON STOCK AT LESS THAN MARKET
PRICE. Except as provided in Paragraph 3.2 or 3.5 below, if and whenever on or
after the date of issuance hereof the Company shall issue or sell, or shall in
accordance with subparagraphs 3.1(1) to (9), inclusive, be deemed to have issued
or sold, any shares of its Common Stock for a consideration per share less than
the Market Price in effect immediately prior to the time of such issue or sale,
then forthwith upon such issue or sale (the "Triggering Transaction"), the
Purchase Price shall, subject to subparagraphs (1) to (9) of this Paragraph 3.1,
be reduced to the Purchase Price (calculated to the nearest tenth of a cent)
determined by dividing:

          (i) an amount equal to the sum of (x) the product derived by
     multiplying the Number of Common Shares Deemed Outstanding immediately
     prior to such Triggering Transaction by the Purchase Price then in effect,
     plus (y) the consideration, if any, received by the Company upon
     consummation of such Triggering Transaction, by

          (ii) an amount equal to the sum of (x) the Number of Common Shares
     Deemed Outstanding immediately prior to such Triggering Transaction plus
     (y) the number of shares of Common Stock issued (or deemed to be issued in
     accordance with subparagraphs 3.1(1) to (9)) in connection with the
     Triggering Transaction.

                                       2
<PAGE>

     For purposes of this Paragraph 3, (a) the term "Number of Common Shares
Deemed Outstanding" at any given time shall mean the sum of (i) the number of
shares of Common Stock outstanding at such time, (ii) the number of shares of
Common Stock issuable assuming conversion of all Aggregate Convertible
Securities then outstanding, and (iii) the number of shares of Common Stock
deemed to be outstanding under subparagraphs 3.1(1) to (9), inclusive, at such
time; and (b) the term "Aggregate Convertible Securities" shall mean all
Options, Convertible Securities and any other securities of the Company which
are convertible into or exchangeable for Common Stock.

     For purposes of determining the adjusted Purchase Price under this
Paragraph 3.1, the following subsections (1) to (9), inclusive, shall be
applicable:

          (1) In case the Company at any time shall in any manner grant (whether
     directly or by assumption in a merger or otherwise) any rights to subscribe
     for or to purchase, or any options for the purchase of, Common Stock or any
     stock or other securities convertible into or exchangeable for Common Stock
     (such rights or options being herein called "Options" and such convertible
     or exchangeable stock or securities being herein called "Convertible
     Securities"), whether or not such Options or the right to convert or
     exchange any such Convertible Securities are immediately exercisable and
     the price per share for which the Common Stock is issuable upon exercise,
     conversion or exchange (determined by dividing (x) the total amount, if
     any, received or receivable by the Company as consideration for the
     granting of such Options, plus the minimum aggregate amount of additional
     consideration payable to the Company upon the exercise of all such Options,
     plus, in the case of such Options which relate to Convertible Securities,
     the minimum aggregate amount of additional consideration, if any, payable
     upon the issue or sale of such Convertible Securities and upon the
     conversion or exchange thereof, by (y) the total maximum number of shares
     of Common Stock issuable upon the exercise of such Options or the
     conversion or exchange of such Convertible Securities) shall be less than
     the Market Price in effect immediately prior to the time of the granting of
     such Option," then the total maximum amount of Common Stock issuable upon
     the exercise of such Options, or, in the case of Options for Convertible
     Securities, upon the conversion or exchange of such Convertible Securities,
     shall (as of the date of granting of such Options) be deemed to be
     outstanding and to have been issued and sold by the Company for such price
     per share. No adjustment of the Purchase Price shall be made upon the
     actual issue of such shares of Common Stock or such Convertible Securities
     upon the exercise of such Options, except as otherwise provided in
     subparagraph (3) below.

          (2) In case the Company at any time shall in any manner issue (whether
     directly or by assumption in a merger or otherwise) or sell any Convertible
     Securities, whether or not the rights to exchange or convert thereunder are
     immediately exercisable, and the price per share for which Common Stock is
     issuable upon such conversion or exchange (determined by dividing (x) the
     total amount received or receivable by the Company as consideration for the
     issue or sale of such Convertible Securities, plus the minimum aggregate
     amount of additional consideration, if any, payable to the Company upon the
     conversion or exchange thereof, by (y) the total maximum number of shares
     of Common Stock issuable upon the conversion or exchange of all such
     Convertible Securities) shall be less than the Market Price in effect
     immediately prior to the time of such issue or sale, then the total maximum
     number of shares of

                                       3
<PAGE>

     Common Stock issuable upon conversion or exchange of all such Convertible
     Securities shall (as of the date of the issue or sale of such Convertible
     Securities) be deemed to be outstanding and to have been issued and sold by
     the Company for such price per share. No adjustment of the Purchase Price
     shall be made upon the actual issue of such Common Stock upon exercise of
     the rights to exchange or convert under such Convertible Securities, except
     as otherwise provided in subparagraph (3) below.

          (3) If the purchase price provided for in any Options referred to in
     subparagraph (1), the additional consideration, if any, payable upon the
     conversion or exchange of any Convertible Securities referred to in
     subparagraphs (1) or (2), or the rate at which any Convertible Securities
     referred to in subparagraph (1) or (2) are convertible into or exchangeable
     for Common Stock shall change at any time (other than under or by reason of
     provisions designed to protect against dilution of the type set forth in
     Paragraph 3.1 or 3.3), the Purchase Price in effect at the time of such
     change shall forthwith be readjusted to the Purchase Price which would have
     been in effect at such time had such Options or Convertible Securities
     still outstanding provided for such changed purchase price, additional
     consideration or conversion rate, as the case may be, at the time initially
     granted, issued or sold. If the purchase price provided for in any Option
     referred to in subparagraph (1) or the rate at which any Convertible
     Securities referred to in subparagraphs (1) or (2) are convertible into or
     exchangeable for Common Stock, shall be reduced at any time under or by
     reason of provisions with respect thereto designed to protect against
     dilution, then in case of the delivery of Common Stock upon the exercise of
     any such Option or upon conversion or exchange of any such Convertible
     Security, the Purchase Price then in effect hereunder shall forthwith be
     adjusted to such respective amount as would have been obtained had such
     Option or Convertible Security never been issued as to such Common Stock
     and had adjustments been made upon the issuance of the shares of Common
     Stock delivered as aforesaid, but only if as a result of such adjustment
     the Purchase Price then in effect hereunder is hereby reduced.

          (4) On the expiration of any Option or the termination of any right to
     convert or exchange any Convertible Securities, the Purchase Price then in
     effect hereunder shall forthwith be increased to the Purchase Price which
     would have been in effect at the time of such expiration or termination had
     such Option or Convertible Securities, to the extent outstanding
     immediately prior to such expiration or termination, never been issued.

          (5) In case any Options shall be issued in connection with the issue
     or sale of other securities of the Company, together comprising one
     integral transaction in which no specific consideration is allocated to
     such Options by the parties thereto, such Options shall be deemed to have
     been issued without consideration.

          (6) In case any shares of Common Stock, Options or Convertible
     Securities shall be issued or sold or deemed to have been issued or sold
     for cash, the consideration received therefor shall be deemed to be the
     amount received by the Company therefor; PROVIDED, HOWEVER, that in the
     event of an offering pursuant to an effective registration statement under
     the Securities Act of 1933, as amended, the consideration received therefor
     shall be deemed to include any monies paid to underwriters in connection
     with such offering in an amount up to five percent (5%) of the per share
     gross proceeds of such offering. In case any shares of Common Stock,

                                       4
<PAGE>

     Options or Convertible Securities shall be issued or sold for a
     consideration other than cash, the amount of the consideration other than
     cash received by the Company shall be the fair value of such consideration
     as determined in good faith by the Board of Directors of the Company. In
     case any shares of Common Stock, Options or Convertible Securities shall be
     issued in connection with any merger in which the Company is the surviving
     corporation, the amount of consideration therefor shall be deemed to be the
     fair value of such portion of the net assets and business of the
     non-surviving corporation as shall be attributed by the Board of Directors
     of the Company in good faith to such Common Stock, Options or Convertible
     Securities, as the case may be.

          (7) The number of shares of Common Stock outstanding at any given time
     shall not include shares owned or held by or for the account of the
     Company, and the disposition of any shares so owned or held shall be
     considered an issue or sale of Common Stock for the purpose of this
     Paragraph 3.1.

          (8) In case the Company shall declare a dividend or make any other
     distribution upon the stock of the Company payable in Options or
     Convertible Securities, then in such case any Options or Convertible
     Securities, as the case may be, issuable in payment of such dividend or
     distribution shall be deemed to have been issued or sold without
     consideration.

          (9) For purposes of this Paragraph 3.1, in case the Company shall take
     a record of the holders of its Common Stock for the purpose of entitling
     them (x) to receive a dividend or other distribution payable in Common
     Stock, Options or in Convertible Securities, or (y) to subscribe for or
     purchase Common Stock, Options or Convertible Securities, then such record
     date shall be deemed to be the date of the issue or sale of the shares of
     Common Stock deemed to have been issued or sold upon the declaration of
     such dividend or the making of such other distribution or the date of the
     granting of such right or subscription or purchase, as the case may be.

     3.2. DIVIDENDS NOT PAID OUT OF EARNINGS OR EARNED SURPLUS. In the event the
Company shall declare a dividend upon the Common Stock (other than a dividend
payable in Common Stock) payable otherwise than out of earnings or earned
surplus, determined in accordance with generally accepted accounting principles,
including the making of appropriate deductions for minority interests, if any,
in subsidiaries (herein referred to as "Liquidating Dividends"), then the
Company shall pay to the person exercising such Warrant an amount equal to the
aggregate value at the time of such exercise of all Liquidating Dividends
(including but not limited to the Common Stock which would have been issued at
the time of such earlier exercise and all other securities which would have been
issued with respect to such Common Stock by reason of stock splits, stock
dividends, mergers or reorganizations, or for any other reason). For the
purposes of this Paragraph 3.2, a dividend other than in cash shall be
considered payable out of earnings or earned surplus only to the extent that
such earnings or earned surplus are charged an amount equal to the fair value of
such dividend as determined in good faith by the Board of Directors of the
Company.

     3.3. SUBDIVISIONS AND COMBINATIONS. In case the Company shall at any
time (i) subdivide the outstanding Common Stock or (ii) issue a stock
dividend on its outstanding

                                       5
<PAGE>

Common Stock, the Purchase Price in effect immediately prior to such
subdivision or dividend shall be proportionately reduced by the same ratio as
the subdivision or dividend. In case the Company shall at any time combine
its outstanding Common Stock, the Purchase Price in effect immediately prior
to such combination shall be proportionately increased by the same ratio as
the combination.

     3.4. REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE OF
ASSETS. If any capital reorganization or reclassification of the capital stock
of the Company, or consolidation or merger of the Company with another
corporation, or the sale of all or substantially all of its assets to another
corporation shall be effected in such a way that holders of Common Stock shall
be entitled to receive stock, securities, cash or other property with respect to
or in exchange for Common Stock, then, as a condition of such reorganization,
reclassification, consolidation, merger or sale, lawful and adequate provision
shall be made whereby the holder of this Warrant shall have the right to acquire
and receive upon exercise of this Warrant such shares of stock, securities, cash
or other property issuable or payable (as part of the reorganization,
reclassification, consolidation, merger or sale) with respect to or in exchange
for such number of outstanding shares of Common Stock as would have been
received upon exercise of this Warrant at the Purchase Price then in effect. The
Company will not effect any such consolidation, merger or sale, unless prior to
the consummation thereof the successor corporation (if other than the Company)
resulting from such consolidation or merger or the corporation purchasing such
assets shall assume by written instrument mailed or delivered to the holder of
this Warrant at the last address of such holder appearing on the books of the
Company, the obligation to deliver to such holder such shares of stock,
securities or assets as, in accordance with the foregoing provisions, such
holder may be entitled to purchase. If a purchase, tender or exchange offer is
made to and accepted by the holders of more than 50% of the outstanding shares
of Common Stock of the Company, the Company shall not effect any consolidation,
merger or sale with the person having made such offer or with any Affiliate of
such person, unless prior to the consummation of such consolidation, merger or
sale the holder of this Warrant shall have been given a reasonable opportunity
to then elect to receive upon the exercise of this Warrant either the stock,
securities or assets then issuable with respect to the Common Stock of the
Company or the stock, securities or assets, or the equivalent, issued to
previous holders of the Common Stock in accordance with such offer. For purposes
hereof the term "Affiliate" with respect to any given person shall mean a person
that, directly or indirectly through one or more intermediaries, controls or is
controlled by, or is under common control with, the person specified.

     3.5. NO ADJUSTMENT FOR EXERCISE OF CERTAIN OPTIONS, WARRANTS, ETC. The
provisions of this Section 3 shall not apply to any Common Stock issued,
issuable or deemed outstanding under subparagraphs 3.1(1) to (9) inclusive: (i)
to any person pursuant to any stock option, stock purchase, dividend
reinvestment or similar plan or arrangement for the benefit of employees,
consultants or directors of the Company or its subsidiaries in effect on the
date of issuance hereof or hereafter adopted by the Board of Directors of the
Company, (ii) pursuant to options, warrants, conversion or subsciption rights in
existence on the date of issuance hereof, (iii) pursuant to the Company's 9%
Series B Junior Convertible Redeemable Preferred Stock, par value $.0001 per
share, (iv) pursuant to this Warrant, or (v) if the Holder agrees in writing
that the provisions of this Section 3 shall not apply.

                                       6
<PAGE>

     3.6. NOTICES OF RECORD DATE, ETC. In the event that:

          (1) the Company shall declare any cash dividend upon its Common Stock,
     or

          (2) the Company shall declare any dividend upon its Common Stock
     payable in stock or make any special dividend or other distribution to the
     holders of its Common Stock, or

          (3) the Company shall offer for subscription pro rata to the holders
     of its Common Stock any additional shares of stock of any class or other
     rights, or

          (4) there shall be any capital reorganization or reclassification of
     the capital stock of the Company, including any subdivision or combination
     of its outstanding shares of Common Stock, or consolidation or merger of
     the Company with, or sale of all or substantially all of its assets to,
     another corporation, or

          (5) there shall be a voluntary or involuntary dissolution, liquidation
     or winding up of the Company;

     then, in connection with such event, the Company shall give to the holder
     of this Warrant:

               (i) at least fifteen (15) days' prior written notice of the date
          on which the books of the Company shall close or a record shall be
          taken for such dividend, distribution or subscription rights or for
          determining rights to vote in respect of any such reorganization,
          reclassification, consolidation, merger, sale, dissolution,
          liquidation or winding up. Such notice (i) shall also specify, in the
          case of any such dividend, distribution or subscription rights, the
          date on which the holders of Common Stock shall be entitled thereto
          and (ii) shall be given by first class mail, postage prepaid,
          addressed to the holder of this Warrant at the address of such holder
          as shown on the books of the Company; and

               (ii) in the case of any such reorganization, reclassification,
          consolidation, merger, sale, dissolution, liquidation or winding up,
          at least fifteen (15) days' prior written notice of the date when the
          same shall take place. Such notice (i) shall also specify the date on
          which the holders of Common Stock shall be entitled to exchange their
          Common Stock for securities or other property deliverable upon such
          reorganization, reclassification, consolidation, merger, sale,
          dissolution, liquidation or winding up, as the case may be, and (ii)
          shall be given by first class mail, postage prepaid, addressed to the
          holder of this Warrant at the address of such holder as shown on the
          books of the Company.

     3.7. GRANT, ISSUE OR SALE OF OPTIONS, CONVERTIBLE SECURITIES, OR RIGHTS. If
at any time or from time to time on or after the date of issuance hereof, the
Company shall grant, issue or sell any Options, Convertible Securities or rights
to purchase property (the "Purchase Rights") pro rata to the record holders of
any class of Common Stock of the Company and such grants, issuances or sales do
not result in an adjustment of the Purchase Price under Paragraph 3.1 hereof,
then the holder of this Warrant shall be entitled to acquire (within thirty (30)
days after the later to occur of the initial exercise date of such Purchase
Rights or receipt by such

                                       7
<PAGE>

holder of the notice concerning Purchase Rights to which such holder shall be
entitled under Paragraph 3.6) and upon the terms applicable to such Purchase
Rights either:

          (i) the aggregate Purchase Rights which such holder could have
     acquired if it had held the number of shares of Common Stock acquirable
     upon exercise of this Warrant immediately before the grant, issuance or
     sale of such Purchase Rights; provided that if any Purchase Rights were
     distributed to holders of Common Stock without the payment of additional
     consideration by such holders, corresponding Purchase Rights shall be
     distributed to the exercising holder of this Warrant as soon as possible
     after such exercise and it shall not be necessary for the exercising holder
     of this Warrant specifically to request delivery of such rights; or

          (ii) in the event that any such Purchase Rights shall have expired or
     shall expire prior to the end of said thirty (30) day period, the number of
     shares of Common Stock or the amount of property which such holder could
     have acquired upon such exercise at the time or times at which the Company
     granted, issued or sold such expired Purchase Rights.

     3.8. ADJUSTMENT BY BOARD OF DIRECTORS. If any event occurs as to which, in
the opinion of the Board of Directors of the Company, the provisions of this
Section 3 are not strictly applicable or if strictly applicable would not fairly
protect the rights of the Holder in accordance with the essential intent and
principles of such provisions, then the Board of Directors shall make an
adjustment in the application of such provisions, in accordance with such
essential intent and principles, so as to protect such rights as aforesaid, but
in no event shall any adjustment have the effect of increasing the Purchase
Price as otherwise determined pursuant to any of the provisions of this Section
3 except in the case of a combination of shares of a type contemplated in
Paragraph 3.3 and then in no event to an amount larger than the Purchase Price
as adjusted pursuant to Paragraph 3.3.

     3.9. FRACTIONAL SHARES. The Company shall not issue fractions of shares of
Common Stock upon exercise of this Warrant or scrip in lieu thereof. If any
fraction of a share of Common Stock would, except for the provisions of this
Paragraph 3.9, be issuable upon exercise of this Warrant, the Company shall in
lieu thereof pay to the person entitled thereto an amount in cash equal to the
current value of such fraction, calculated to the nearest one-hundredth (1/100)
of a share, to be computed (i) if the Common Stock is listed on any national
securities exchange on the basis of the last sales price of the Common Stock on
such exchange (or the quoted closing bid price if there shall have been no
sales) on the date of conversion or (ii) if the Common Stock shall not be
listed, on the basis of the mean between the closing bid and asked prices for
the Common Stock on the date of conversion as reported by NASDAQ, or its
successor, and if there are not such closing bid and asked prices, on the basis
of the fair market value per share as determined by the Board of Directors of
the Company.

     3.10. OFFICERS' STATEMENT AS TO ADJUSTMENTS. Whenever the Purchase Price
shall be adjusted as provided in Section 3 hereof, the Company shall forthwith
file at each office designated for the exercise of this Warrant, a statement,
signed by the Chairman of the Board, the President, any Vice President or
Treasurer of the Company, showing in reasonable detail the facts requiring such
adjustment and the Purchase Price that will be effective after such

                                       8
<PAGE>

adjustment. The Company shall also cause a notice setting forth any such
adjustments to be sent by mail, first class, postage prepaid, to the record
holder of this Warrant at his or its address appearing on the stock register. If
such notice relates to an adjustment resulting from an event referred to in
Paragraph 3.6, such notice shall be included as part of the notice required to
be mailed and published under the provisions of Paragraph 3.6 hereof.

     4. NO DILUTION OR IMPAIRMENT. The Company will not, by amendment of its
charter or through reorganization, consolidation, merger, dissolution, sale of
assets or any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such
action as may be necessary or appropriate in order to protect the rights of the
holder hereof against dilution or other impairment. Without limiting the
generality of the foregoing, the Company will not increase the par value of any
shares of stock receivable upon the exercise of this Warrant above the amount
payable therefor upon such exercise, and at all times will take all such action
as may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and non-assessable stock upon the exercise of this
Warrant.

     5. RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE OF WARRANTS. The
Company shall at all times reserve and keep available out of its authorized but
unissued stock, solely for the issuance and delivery upon the exercise of this
Warrant and other similar Warrants, such number of its duly authorized shares of
Common Stock as from time to time shall be issuable upon the exercise of this
Warrant and all other similar Warrants at the time outstanding.

     6. REPLACEMENT OF WARRANT. Upon receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant and
(in the case of loss, theft or destruction) upon delivery of an indemnity
agreement (with surety if reasonably required) in an amount reasonably
satisfactory to it, or (in the case of mutilation) upon surrender and
cancellation thereof, the Company will issue, in lieu thereof, a new Warrant of
like tenor.

     7. REMEDIES. The Company stipulates that the remedies at law of the holder
of this Warrant in the event of any default by the Company in the performance of
or compliance with any of the terms of this Warrant are not and will not be
adequate, and that the same may be specifically enforced.

     8. NEGOTIABILITY, ETC. This Warrant is issued upon the following terms, to
all of which each taker or owner hereof consents and agrees:

     8.1. Subject to the legend appearing on the first page hereof, title to
this Warrant may be transferred by endorsement (by the holder hereof executing
the form of assignment at the end hereof including guaranty of signature) and
delivery in the same manner as in the case of a negotiable instrument
transferable by endorsement and delivery.

     8.2. Any person in possession of this Warrant properly endorsed is
authorized to represent himself as absolute owner hereof and is granted power to
transfer absolute title

                                       9
<PAGE>

hereto by endorsement and delivery hereof to a bona fide purchaser hereof for
value; each prior taker or owner waives and renounces all of his equities or
rights in this Warrant in favor of every such bona fide purchaser, and every
such bona fide purchaser shall acquire title hereto and to all rights
represented hereby.

     8.3. Until this Warrant is transferred on the books of the Company, the
Company may treat the registered holder of this Warrant as the absolute owner
hereof for all purposes without being affected by any notice to the contrary.

     8.4. Prior to the exercise of this Warrant, the holder hereof shall not be
entitled to any rights of a stockholder of the Company with respect to shares
for which this Warrant shall be exercisable, including, without limitation, the
right to vote, to receive dividends or other distributions or to exercise any
preemptive rights, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided herein.

     8.5. The Company shall not be required to pay any Federal or state transfer
tax or charge that may be payable in respect of any transfer involved in the
transfer or delivery of this Warrant or the issuance or delivery of certificates
for Common Stock in a name other than that of the registered holder of this
Warrant or to issue or deliver any certificates for Common Stock upon the
exercise of this Warrant until any and all such taxes and charges shall have
been paid by the holder of this Warrant or until it has been established to the
Company's satisfaction that no such tax or charge is due.

     9. SUBDIVISION OF RIGHTS. This Warrant (as well as any new warrants issued
pursuant to the provisions of this paragraph) is exchangeable, upon the
surrender hereof by the holder hereof, at the principal office of the Company
for any number of new warrants of like tenor and date representing in the
aggregate the right to subscribe for and purchase the number of shares of Common
Stock of the Company which may be subscribed for and purchased hereunder.

     10. MAILING OF NOTICES, ETC. All notices and other communications from
the Company to the holder of this Warrant shall be mailed by first-class
certified mail, postage prepaid, to the address furnished to the Company in
writing by the last holder of this Warrant who shall have furnished an
address to the Company in writing.

     11. HEADINGS, ETC. The headings in this Warrant are for purposes of
reference only, and shall not limit or otherwise affect the meaning hereof.

     12. CHANGE, WAIVER, ETC. Neither this Warrant nor any term hereof may be
changed, waived, discharged or terminated orally but only by an instrument in
writing signed by the party against which enforcement of the change, waiver,
discharge or termination is sought.

     13. GOVERNING LAW. THIS WARRANT SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                                       10
<PAGE>

     14. ASSIGNABILITY. Notwithstanding anything to the contrary in this
Warrant, the assignability of this Warrant is subject to the restrictions on
Beneficial and Constructive Ownership and Transfer set forth in Article TENTH
of the Company's Amended and Restated Articles of Incorporation.

                                       PRICE ENTERPRISES, INC.

                                       By:
                                          ____________________________________
                                          Name:
                                          Title:

Dated:____________________, 2001

Attest:

___________________________

                                       11
<PAGE>

                  [To be signed only upon exercise of Warrant]

To Price Enterprises, Inc.

     The undersigned, the holder of the within Warrant, hereby irrevocably
elects to exercise the purchase right represented by such Warrant for, and to
purchase thereunder, ___________ shares of Common Stock of Price Enterprises,
Inc. and herewith makes payment of $_______________ therefor, and requests that
the certificates for such shares be issued in the name of, and be delivered to
________________________, whose address is _______________________________.

Dated:

_______________________________

                                                    __________________________

The undersigned hereby represents that it is exercising the Warrant for its own
account or the account of an Affiliate for investment purposes and not with the
view to any sale or distribution and that the undersigned will not offer, sell
or otherwise dispose of the Warrant or any shares of Common Stock issued upon
exercise of the Warrant in violation of applicable securities laws.

(Signature must conform in all respects to name of Holder as specified on the
face of the Warrant)

                                                    __________________________

                                                    __________________________
                                                               Address

                                       12
<PAGE>

                  [To be signed only upon transfer of Warrant]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto __________________ the right represented by the within Warrant to
purchase the ___________ shares of Common Stock of Price Enterprises, Inc. to
which the within Warrant relates, and appoints _______________ attorney to
transfer said right on the books of Price Enterprises, Inc. with full power
of substitution in the premises.

Dated:

___________________________________

                                                    __________________________

(Signature must conform in all respects to name of Holder as specified on the
face of the Warrant)

                                                    __________________________
                                                               Address

In the presence of:

___________________________________

                                       13

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