Document:

<PAGE>

                                                                   Exhibit 10.24

                             PRIME RESPONSE, INC.

                          WARRANT PURCHASE AGREEMENT
                          --------------------------

     This Agreement dated as of December 6, 1999 is entered into by and among
Prime Response, Inc. (f/k/a Prime Response Group, Inc.), a Delaware corporation
(the "Company"), and Andersen Consulting LLP, an Illinois limited liability
partnership (the "Purchaser").

     In consideration of the mutual promises and covenants contained in this
Agreement, the parties hereto agree as follows:

     1.  Authorization and Sale of Shares.
         --------------------------------

         1.1  Authorization.  The Company has, or before the Closing (as
              -------------
defined in Section 2) will have, duly authorized the sale and issuance,
pursuant to the terms of this Agreement, of (i) a warrant to purchase up to
500,000 shares of its Common Stock, $.01 par value per share ("Common Stock"),
in the form attached hereto as Exhibit A, and (ii) a warrant to purchase up to
                               ---------
500,000 shares of Common Stock, in the form attached hereto as Exhibit B
                                                               ---------
(collectively with the warrant referred to in clause (i) of this sentence, the
"Warrants").

         1.2  Sale of Warrants.  Subject to the terms and conditions of this
              ----------------
Agreement, at the Closing the Company will sell and issue to the Purchaser, and
the Purchaser will purchase, the Warrants for the aggregate purchase price of
$.01 (the "Purchase Price").

     2.  The Closing.  The closing (the "Closing") of the sale and purchase of
         -----------
the Warrants under this Agreement shall take place at the offices of Bingham
Dana LLP, 150 Federal Street, Boston, MA simultaneously with the execution
hereof, or at such other time, date and place as are mutually agreeable to the
Company and the Purchaser.  At the Closing, the Company shall deliver to the
Purchaser the Warrants, against payment to the Company of the Purchase Price, by
wire transfer or certified check of immediately available funds.  The date of
the Closing is hereinafter referred to as the "Closing Date."

     3.  Representations of the Company.  The Company hereby represents and
         ------------------------------
warrants to the Purchaser that the representations and warranties of the Company
contained in Section 2 of the Common Stock and Warrant Purchase Agreement dated
as of the date hereof between the Company and the Purchaser (the "Stock and
Warrant Purchase Agreement") are true, complete and correct except as otherwise
set forth in any schedule thereto.

     4.  Representations of the Purchaser.  The Purchaser hereby represents and
         --------------------------------
warrants to the Company that the representations and warranties of the Purchaser
contained in Section 3 of the Stock and Warrant Purchase Agreement are true,
complete and correct.
<PAGE>

     5.  Conditions to the Obligations of the Purchaser.  The obligation of the
         ----------------------------------------------
Purchaser to purchase Shares at the Closing is subject to the fulfillment, or
the waiver by the Purchaser, of each of the following conditions on or before
the Closing:

         5.1  Opinion of Counsel.  The Purchaser shall have received an
              ------------------
opinion from Hale and Dorr LLP, counsel for the Company, dated the Closing Date,
addressed to the Purchaser, and satisfactory in form and substance to the
Purchaser, to the effect set forth on Exhibit C.
                                      ---------

         5.2  Other Agreements.  The Stock and Warrant Purchase Agreement and
              ----------------
Marketing Agreement (as defined in the Stock and Warrant Purchase Agreement)
shall have been executed and delivered by the Company.

     6.  Condition to the Obligations of the Company.  The obligations of the
         -------------------------------------------
Company under Section 1.2 of this Agreement are subject to fulfillment, or the
waiver, of the following condition on or before the Closing:

         6.1  Other Agreements.  The Stock and Warrant Purchase Agreement and
              ----------------
Marketing Agreement (as defined in the Stock and Warrant Purchase Agreement)
shall have been executed and delivered by the Purchaser.

     7.  Transfer of Shares.
         ------------------

         7.1  Restricted Shares.  "Restricted Securities" means (i) the
              -----------------
Warrants, (ii) the shares of Common Stock issued or issuable upon exercise of
the Warrants, and (iii) any other securities of the Company issued in respect of
such shares or Warrants (as a result of stock splits, stock dividends,
reclassifications, recapitalizations, or similar events); provided, however,
                                                          --------  -------
that shares of Common Stock which are Restricted Securities shall cease to be
Restricted Securities upon any sale pursuant to a registration statement under
the Securities Act, Section 4(1) of the Securities Act or Rule 144 under the
Securities Act.

         7.2  Requirements for Transfer.  Restricted Securities shall not be
              -------------------------
sold or transferred unless (i) they first shall have been registered under the
Securities Act, (ii) they are transferred to an affiliate in a transaction that
is exempt from the registration requirements of the Securities Act, or (iii) the
Company first shall have been furnished with an opinion of legal counsel,
reasonably satisfactory to the Company, to the effect that such sale or transfer
(to persons other than affiliates) is exempt from the registration requirements
of the Securities Act.

         7.3  Legend.  Each certificate representing Restricted Securities
              ------
shall bear a legend substantially in the following form:

           "Neither this warrant nor the shares issuable upon the
           exercise of this warrant have been registered under the
           Securities Act of 1933, as amended, and neither this
           warrant nor the shares issuable upon the exercise of this
           warrant may be offered, sold or otherwise transferred,
           unless the registration provisions of such Act have been
           complied with or unless compliance with such provisions
           is not required."

                                      -2-
<PAGE>

The foregoing legend shall be removed from the certificates representing any
Restricted Securities, at the request of the holder thereof, at such time as
they become eligible for resale pursuant to Rule 144(k) under the Securities
Act.

     8.  Miscellaneous.
         -------------

         8.1  Successors and Assigns.  This Agreement shall be binding upon
              ----------------------
and inure to the benefit of the parties and their respective successors and
permitted assigns.  No party hereto may assign its rights under this Agreement
without the prior written consent of the other party hereto.

         8.2  Confidentiality.  The Purchaser agrees that it will keep
              ---------------
confidential and will not disclose, divulge or use for any purpose other than to
monitor his, her or its investment in the Company any confidential, proprietary
or secret information which the Purchaser may obtain from the Company pursuant
to any financial statements, reports or other materials submitted by the Company
to the Purchaser in connection with this Agreement ("Confidential Information"),
unless such Confidential Information is known, or until such Confidential
Information becomes known, to the public (other than as a result of a breach of
this section by the Purchaser); provided, however, that the Purchaser may
disclose Confidential Information (i) to its attorneys, accountants,
consultants, and other professionals to the extent necessary to obtain their
services in connection with monitoring its investment in the Company, or (ii)
as may otherwise be required by law, provided that the Purchaser takes
reasonable steps to minimize the extent of any such required disclosure.

         8.3  Severability.  The invalidity or unenforceability of any
              ------------
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.

         8.4  Governing Law.  This Agreement shall be governed by and
              -------------
construed in accordance with the internal laws of the State of Delaware (without
reference to the conflicts of law provisions thereof).

         8.5  Notices.  All notices, requests, consents, and other
              -------
communications under this Agreement shall be in writing and shall be deemed
delivered (i) two business days after being sent by registered or certified
mail, return receipt requested, postage prepaid or (ii) one business day after
being sent via a reputable nationwide overnight courier service guaranteeing
next business day delivery, in each case to the intended recipient as set forth
below:

     If to the Company, at 150 Cambridge Park Drive, Cambridge, MA 02140,
Attention: President, or at such other address or addresses as may have been
furnished in writing by the Company to the Purchaser, with a copy to Hale and
Dorr LLP, 60 State Street, Boston, MA 02109, Fax 617-526-5000, Attention:  John
A. Burgess, Esq.; or

     If to the Purchaser, at 333 South Seventh Street, Minneapolis, MN 55402,
Attention:  J. Patrick O'Halloran, or at such other address or addresses as may
have been furnished to the Company in writing by the Purchaser, with a copy to
Bingham Dana LLP, 150 Federal Street, Boston, MA 02110, Attention:  Wayne D.
Bennett, Esq. and Meerie Joung, Esq.

                                      -3-
<PAGE>

     Any party may give any notice, request, consent or other communication
under this Agreement using any other means (including, without limitation,
personal delivery, messenger service, telecopy, first class mail or electronic
mail), but no such notice, request, consent or other communication shall be
deemed to have been duly given unless and until it is actually received by the
party for whom it is intended.  Any party may change the address to which
notices, requests, consents or other communications hereunder are to be
delivered by giving the other parties notice in the manner set forth in this
Section.

         8.6  Complete Agreement.  This Agreement constitutes the entire
              ------------------
agreement and understanding of the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements and understandings relating to
such subject matter.

         8.7  Waivers.  No waivers of or exceptions to any term, condition or
              -------
provision of this Agreement, in any one or more instances, shall be deemed to
be, or construed as, a further or continuing waiver of any such term, condition
or provision.

         8.8  Pronouns.  Whenever the context may require, any pronouns used
              --------
in this Agreement shall include the corresponding masculine, feminine or neuter
forms, and the singular form of nouns and pronouns shall include the plural, and
vice versa.

         8.9  Counterparts; Facsimile Signatures.  This Agreement may be
              ----------------------------------
executed in any number of counterparts, each of which shall be deemed to be an
original, and all of which shall constitute one and the same document.   This
Agreement may be executed by facsimile signatures.

         8.10  Section Headings.  The section headings are for the convenience
               ----------------
of the parties and in no way alter, modify, amend, limit, or restrict the
contractual obligations of the parties.

                         [signatures on following page]

                                      -4-
<PAGE>

     Executed as of the date first written above.

                              COMPANY:

                              PRIME RESPONSE, INC.

                              By: /s/ Peter J. Boni
                                  -------------------------------
                                  Name: Peter J. Boni
                                  Title: Chief Executive Officer
                                         and President

                              PURCHASER:

                              ANDERSEN CONSULTING LLP

                              By: /s/ J. Patrick O'Halloran
                                  -------------------------------
                                  Name: J. Patrick O'Halloran
                                  Title: Partner

                                      -5-<PAGE>

                                                                   Exhibit 10.25

    NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND NEITHER
THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE SOLD
OR TRANSFERRED UNLESS THE REGISTRATION PROVISIONS OF SAID ACT HAVE BEEN COMPLIED
WITH OR UNLESS COMPLIANCE WITH SUCH PROVISIONS IS NOT REQUIRED.

No. AC-1                                             Dated:  December 9, 1999

                              PRIME RESPONSE, INC.

                                  Common Stock
                                Purchase Warrant

     THIS IS TO CERTIFY THAT, for value received, Andersen Consulting LLP (the
"Initial Warrant Holder"), and its registered successors and permitted assigns
 ------- ------- ------
are entitled, subject to the terms and conditions set forth below, to purchase
from PRIME RESPONSE, INC. (f/k/a Prime Response Group, Inc.), a Delaware
corporation (the "Corporation"), at any time or from time to time on and after
                  -----------
the date hereof and prior to 5:00 P.M., Boston, Massachusetts time, on the
Expiration Date (as defined in Section 1 below), all or any portion of the
Warrant Shares (as defined in Section 1), at a purchase price per share equal to
the Exercise Price (as defined in Section 1 below). The number and character of
the Warrant Shares and the Exercise Price are subject to adjustment as provided
herein.

     1.  DEFINITIONS.  As used in this Warrant, the following terms shall
         -----------
have the respective meanings set forth below or elsewhere in this Warrant as
referred to below:

     "Certificate of Incorporation" shall mean the Certificate of Incorporation
      ----------- -- -------------
of the Corporation, as amended and in effect from time to time.

     "Common Stock" shall mean shares of the Common Stock of the Corporation,
      ------ -----
$0.01 par value per share of the Corporation and shall also include any capital
stock of any class of the Corporation authorized after the date hereof which
shall neither be limited to a fixed sum or percentage of par value in respect of
the rights of the holders thereof to participate in dividends or any
distribution of earnings or assets (in liquidation or otherwise) of the
Corporation, whether or not such capital stock is entitled to a preference in
the distribution of assets upon the voluntary of involuntary liquidation,
dissolution or winding up of the Corporation.
<PAGE>

                                      -2-

     "Corporation" shall mean Prime Response, Inc. and/or any Person that shall
      -----------
succeed to, or assume the obligations hereunder of, Prime Response, Inc.

     "Derivative Securities" shall mean (i) all shares of stock and other
      ---------- ----------
securities that are, directly or indirectly, convertible into or exchangeable
for shares of Common Stock and (ii) all options, warrants and other rights to
acquire, directly or indirectly, shares of Common Stock or securities, directly
or indirectly, convertible into or exchangeable for shares of Common Stock.

     "Exercise Date" shall have the meaning set forth in Section 2.2 hereof.
      -------- ----

     "Exercise Price" shall mean, as of the Initial Exercise Date, the Initial
      -------- -----
Exercise Price and after the Initial Exercise Date, the Initial Exercise Price
as adjusted from time to time pursuant to the terms of this Warrant.

     "Expiration Date" shall mean December 9, 2006.
      ---------- ----

     "Fair Market Value" shall mean (i) the last reported sale price per share
      ---- ------ -----
of Stock on the Nasdaq National Market or any national securities exchange in
which such Stock is quoted or listed, as the case may be, on the date
immediately preceding the Exercise Date or, if no such sale price is reported on
such date, such price on the next preceding business day in which such price was
reported, or (ii) if such Stock is not quoted or listed on the Nasdaq National
Market or any national securities exchange, the fair market value of a share of
such Stock, as determined in good faith by the Board of Directors of the
Corporation and based upon the fair market value of the Corporation as a whole,
using customary and appropriate valuation methods (and not taking into account
any discounts for minority ownership or restrictions or transfer of the capital
stock of the Corporation).

     "Holder" shall mean, as applicable, (i) the Initial Warrant Holder, or (ii)
      ------
any successor of the Initial Warrant Holder.

     "Initial Exercise Date" shall mean the date on which this Warrant first
      ------- -------- ----
vests in accordance with the provisions of the second paragraph of Section 2.1
hereof.

     "Initial Exercise Price" shall mean an amount equal to $7.01 per share.
      ------- -------- -----

     "Initial Warrant Holder" shall have the meaning set forth in the first
      ------- ------- ------
paragraph of this  Warrant.

     "Initial Warrant Shares" shall mean 909,709 shares of Common Stock.
      ------- ------- ------

     "Issue Date" shall mean the date hereof.
      ----- ----
<PAGE>

                                      -3-

     "Person" shall mean an individual, partnership, corporation, limited
      ------
liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, governmental authority or other entity of whatever
nature.

     "Preferred Stock" shall mean the Series A Preferred Stock, the Series B
      --------- -----
Preferred Stock and the Series C Preferred Stock and all other capital stock of
the Corporation having a preference on dissolution or liquidation of the
Corporation.

     "Purchase Agreement" shall mean that certain Common Stock and Warrant
      -------- ---------
Purchase Agreement, dated as of December 6, 1999, by and between the Corporation
and Andersen Consulting LLP.

     "Registrable Securities" shall have the meaning ascribed to it in the
      ----------- ----------
Registration Rights Agreement.

     "Registration Rights Agreement" shall mean the Amended and Restated
      ------------ ------ ---------
Registration Rights Agreement, dated as of December 6, 1999, by and among the
Corporation and the other parties thereto.

     "Securities Act" shall mean the Securities Act of 1933, as amended.
      ---------- ---

     "Series A Preferred Stock" shall mean the Series A Convertible
      ------ - --------- -----
Participating Preferred Stock of the Corporation, $0.01 par value per share.

     "Series B Preferred Stock" shall mean the Series B Convertible
      ------ - --------- -----
Participating Preferred Stock of the Corporation, $0.01 par value per share.

     "Series C Preferred Stock" shall mean the Series C Convertible Preferred
      ------ - --------- -----
Stock of the Corporation, $0.01 par value per share.

     "Stock" shall mean (i) Common Stock, (ii) capital stock of the Corporation
      -----
(other than Common Stock) or of any other Person or any other securities of the
Corporation or of any other Person that the Holder is entitled to receive, or
receives, upon exercise of this Warrant, in lieu of or in addition to Common
Stock, and/or (iii) capital stock of the Corporation (other than Common Stock)
or of any other Person or any other securities of the Corporation or of any
other Person that may be issued in replacement of, substitution, exchange or
redemption for, or upon reclassification or conversion of, Common Stock or any
other Stock, in each case whether as a result of a reorganization,
reclassification, merger, consolidation or sale of substantially all of the
assets of the Corporation.

     "Warrant" shall have the meaning set forth in the second paragraph of this
      -------
Warrant.
<PAGE>

                                      -4-

     "Warrant Shares" shall mean, at any time, the Initial Warrant Shares after
      ------- ------
giving effect to the number of shares of Stock previously purchased by the
Holder pursuant to any and all exercises of this Warrant prior to such time and
after giving effect to all adjustments with respect to the number of Warrant
Shares purchaseable hereunder as provided for herein, including, without
limitation, those set forth in Section 4 hereof, prior to such time.

     2.  EXERCISE OF WARRANT.
         -------------------

     2.1 METHOD OF EXERCISE. Subject to and upon all of the terms and conditions
         ------------------
set forth in this Warrant, the Holder may exercise this Warrant, in whole or in
part with respect to any Warrant Shares, at any time and from time to time
during the period commencing on the date that this Warrant vests in accordance
with the second paragraph of this Section 2.1 and ending at 5:00 p.m., Boston,
Massachusetts time, on the Expiration Date, by presentation and surrender of
this Warrant to the Corporation at its principal office, together with (a) a
properly completed and duly executed subscription form, in the form attached
hereto, which subscription form shall specify the number of Warrant Shares for
which this Warrant is then being exercised, and (b) payment of the aggregate
Exercise Price payable hereunder in respect of the number of Warrant Shares
being purchased upon exercise of this Warrant. Payment of such aggregate
Exercise Price shall be made (i) in cash or by money order, certified or bank
cashier's check or wire transfer (in each case in lawful currency of the United
States of America), or (ii) by cancellation of indebtedness owing from the
Corporation to the Holder, (iii) if the Common Stock is then traded on the
Nasdaq National Market or a national securities exchange, by cancellation of a
portion of this Warrant exercisable for such number of Warrant Shares as is
determined by dividing (A) the total Exercise Price payable in respect of the
number of Warrant Shares being purchased upon such exercise by (B) the excess of
the Fair Market Value per share of Common Stock as of the Exercise Date (as
defined below) over the Exercise Price per share; if the Holder wishes to
exercise this Warrant pursuant to this clause (iii) with respect to the maximum
number of Warrant Shares purchasable pursuant to this method, then the number of
Warrant Shares so purchased shall be equal to the total number of Warrant
Shares, minus the product obtained by multiplying (x) the total number of
Warrant Shares by (y) a fraction, the numerator of which shall be the Exercise
Price per share and the denominator of which shall be the Fair Market Value per
share of Common Stock as of the Exercise Date, or (iv) any combination of the
methods described in the foregoing clauses (i), (ii) or (iii).

     This Warrant will become exercisable ("vest") in full automatically and
without further action upon the earlier to occur of September 9, 2000 [9-
months after the Issue Date] and (ii) a Liquidity Event. The term "Liquidity
                                                                   ---------
Event" shall mean (y) the sale of all or substantially all of the property and
-----
assets of the Corporation in one transaction or a series of one or more related
transactions, or (z) the acquisition of the Company by another person or entity
by means of stock purchase (whether by transfer or outstanding
<PAGE>

                                      -5-

shares or through new issuances), merger, consolidation or otherwise which would
result in the exchange of shares of capital stock of the Company for cash,
securities or other consideration paid by the acquiring person or entity, or any
similar transaction.

     2.2 EFFECTIVENESS OF EXERCISE; OWNERSHIP. Each exercise of this Warrant by
         ------------------------------------
the Holder shall be deemed to have been effected immediately prior to the close
of business on the date upon which all of the requirements of Section 2.1 hereof
with respect to such exercise shall have been complied with in full (each such
date, an "Exercise Date"). On the applicable Exercise Date with respect to any
          -------- ----
exercise of this Warrant by the Holder, the Corporation shall be deemed to have
issued to the Holder, and the Holder shall be deemed to have become the holder
of record and legal owner of, the number of Warrant Shares being purchased upon
such exercise of this Warrant, notwithstanding that the stock transfer books of
the Corporation shall then be closed or that certificates representing such
number of Warrant Shares being purchased shall not then be actually delivered to
the Holder.

     2.3 DELIVERY OF STOCK CERTIFICATES ON EXERCISE. As soon as practicable
         ------------------------------------------
after the exercise of this Warrant, and in any event within ten (10) days
thereafter, the Corporation, at its expense and in accordance with applicable
securities laws, will cause to be issued in the name of and delivered to the
Holder, or as the Holder may direct (subject in all cases, to the provisions of
Section 9 hereof), a certificate or certificates for the number of Warrant
Shares purchased by the Holder on such exercise, plus, in lieu of any fractional
                                                 ----
share to which the Holder would otherwise be entitled, cash equal to such
fraction multiplied by the Fair Market Value.

     2.4 SHARES TO BE FULLY PAID AND NONASSESSABLE. All Warrant Shares issued
         -----------------------------------------
upon the exercise of this Warrant shall be validly issued, fully paid and
nonassessable, free of all liens, transfer taxes, charges and other encumbrances
or restrictions on sale (other than those set forth herein) and free and clear
of all preemptive rights.

     2.5 FRACTIONAL SHARES. No fractional shares of Stock or scrip representing
         -----------------
fractional shares of Stock shall be issued upon the exercise of this Warrant.
With respect to any fraction of a share of Stock called for upon any exercise
hereof, the Corporation shall make a cash payment to the Holder as set forth in
Section 2.3 hereof.

     2.6 ISSUANCE OF NEW WARRANTS; CORPORATION ACKNOWLEDGMENT. Upon any partial
         ----------------------------------------------------
exercise of this Warrant, the Corporation, at its expense, will forthwith and,
in any event, within ten (10) days after such partial exercise issue and deliver
to the Holder a new warrant or warrants of like tenor, registered in the name of
the Holder, exercisable, in the aggregate, for the balance of the Warrant
Shares.

     2.7 PAYMENT OF TAXES AND EXPENSES. The Corporation shall pay any recording,
         -----------------------------
filing, stamp or similar tax which may be payable in respect of any transfer
involved in the issuance of, and the preparation and delivery of certificates
(if applicable)
<PAGE>

                                      -6-

representing, (i) any Warrant Shares purchased upon exercise of this Warrant
and/or (ii) new or replacement warrants in the Holder's name or the name of any
transferee of all or any portion of this Warrant.

     3.  REGISTRATION AND OTHER RIGHTS.
         -----------------------------

         (A) REGISTRATION RIGHTS.  The Holder of this Warrant shall have the
             -------------------
right to cause the Corporation to register any and all Warrant Shares under the
Securities Act and under any blue sky or securities laws of any jurisdictions
within the United States, at the time and in the manner specified and as
provided for in the Registration Rights Agreement, and any and all Warrant
Shares shall be deemed to be included within the definition of Registrable
Securities for all purposes thereof.

         (B) PURCHASE AGREEMENT.  Subject to Section 10.4 of this Warrant, for
             ------------------
the purposes of the Purchase Agreement, the shares of Common Stock issuable upon
exercise of this Warrant shall be included for the purposes of determining the
number of shares of Common Stock held by such Holder for all purposes of such
agreement.

     4.  ADJUSTMENTS.
         -----------

     4.1  ADJUSTMENTS FOR STOCK DIVIDENDS, SUBDIVISIONS AND COMBINATIONS.
          --------------------------------------------------------------

          (a) In the event that, at any time and from time to time after the
Issue Date, the Corporation shall (A) issue any additional shares of Stock as a
dividend or distribution on its outstanding Stock or options, warrants or other
rights to purchase, directly or indirectly, Stock as a dividend or distribution
on its outstanding Stock or securities convertible, directly or indirectly, into
Stock as a dividend or distribution on its outstanding Stock (other than shares
of Stock issued upon conversion of Preferred Stock), (B) subdivide its
outstanding shares of Stock into a greater number of shares of Stock or (C)
combine its outstanding shares of Stock into a smaller number of shares of
Stock, then and in each such event, (x) the Exercise Price shall, simultaneously
with the happening of such event, be adjusted by multiplying the then current
Exercise Price by a fraction, (i) the numerator of which shall be the number of
shares of Stock outstanding immediately prior to such event on a fully-diluted
basis, assuming exercise in full of all options, warrants or other rights to
purchase Stock, directly or indirectly, outstanding immediately prior to such
event and conversion into or exchange for Stock, directly or indirectly, of all
securities convertible into or exchangeable for Stock outstanding immediately
prior to such event, each in accordance with their terms, and (ii) the
denominator of which shall be the number of shares of Stock outstanding
immediately after such event on a fully-diluted basis, assuming exercise in full
of all options, warrants or other rights to purchase Stock, directly or
indirectly, outstanding immediately after such event and conversion into or
exchange for Stock, directly or indirectly, of all securities convertible into
or exchangeable for Stock outstanding immediately after such event, each in
accordance with their terms, and the product so obtained shall thereafter be the
Exercise Price then in effect, and (y) the number of Warrant
<PAGE>

                                      -7-

Shares shall be adjusted by increasing or decreasing, as the case may be, the
number of shares of Stock included within the Warrant Shares by the percentage
increase or decrease in the total number of shares of Stock outstanding
immediately after such event as compared to the total number of shares of Stock
outstanding immediately prior to such event and the result so obtained shall be
the number of Warrant Shares then in effect.

         (b) The Exercise Price and the number of Warrant Shares, as so
adjusted, shall be readjusted in the same manner upon the happening of any
successive event or events described in this Section 4.1

     4.2 ADJUSTMENT FOR REORGANIZATION, CONSOLIDATION OR MERGER. In the event
         ------------------------------------------------------
that, at any time or from time to time after the Issue Date, the Corporation
shall (a) effect a reorganization, (b) consolidate with or merge into any other
Person, or (c) sell or transfer all or substantially all of its properties or
assets or more than 50% of the voting capital stock of the Corporation (whether
issued and outstanding, newly issued, from treasury, or any combination thereof)
to any other Person under any plan or arrangement contemplating the
reorganization, consolidation or merger, sale or transfer, or dissolution of the
Corporation, then, in each such case, the Holder, upon the exercise of this
Warrant as provided in Section 2 hereof at any time or from time to time after
the consummation of such reorganization, consolidation, merger or sale or the
effective date of such dissolution (subject to the limitation contained in
Section 4.6, if applicable), as the case may be, shall receive, in lieu of the
Warrant Shares issuable on such exercise immediately prior to such consummation
or such effective date, as the case may be, the Stock and property (including
cash) to which the Holder would have been entitled upon the consummation of such
reorganization, consolidation or merger, or sale or transfer, or in connection
with such dissolution, as the case may be, if the Holder had so exercised this
Warrant immediately prior thereto (assuming the payment by the Holder of the
Exercise Price therefor as required hereby in a form permitted hereby, which
payment shall be included in the assets of the Corporation for the purposes of
determining the amount available for distribution), all subject to successive
adjustments thereafter from time to time pursuant to, and in accordance with,
the provisions of this Section 4.

     4.3 ADJUSTMENTS FOR RECLASSIFICATIONS. If the Common Stock issuable upon
         ---------------------------------
the conversion of this Warrant shall be changed into the same or a different
number of shares of any class(es) or series of stock, whether by
reclassification or otherwise (other than an adjustment under Section 4.1 or a
merger, consolidation, or sale of assets provided for under Section 4.2), then
and in each such event, the Holder hereof shall have the right thereafter to
convert each Warrant Share into the kind and amount of shares of stock and other
securities and property receivable upon such reclassification, or other change
by holders of the number of shares of Common Stock into which such Warrant
Shares would have been convertible immediately prior to such reclassification,
or change, all subject to further adjustment as provided herein.
<PAGE>

                                      -8-

     4.4 DISTRIBUTIONS. In the event that, at any time or from time to time
         -------------
after the Issue Date, the Corporation shall make or issue, or shall fix a record
date for the determination of eligible holders entitled to receive, a dividend
or other distribution with respect to Common Stock payable in (i) shares of its
capital stock (other than a stock dividend provided for in Section 4.1), (ii)
other securities of the Corporation or any other Person, (iii) evidences of
indebtedness issued by the Company or any other Person, (iv) options, warrants
or rights to subscribe for or purchase any of the foregoing, or (v) assets
(excluding cash dividends) then, in each such case, the Holder of this Warrant
shall receive, in addition to the shares of Stock issuable upon the exercise of
this Warrant prior to such date, and without the payment of additional
consideration therefor, the shares of capital stock, other securities, evidence
of indebtedness, options, warrants or other rights or assets, as the case may
be, to which such Holder would have been entitled upon such date as if such
Holder had exercised this Warrant on the date hereof and had thereafter, during
the period from the date hereof to and including the date of the actual exercise
of this Warrant, retained such shares and/or all other additional stock
available to it as aforesaid during such period, giving effect to all
adjustments pursuant to this Section 4. The Company shall reserve and set aside,
for the life of this Warrant or until exercised in full, all such distributions
to which the Holder is entitled to receive pursuant to the this Section 4.4.

     4.5 CONTINUATION OF TERMS. Upon any reorganization, reclassification, sale,
         ---------------------
consolidation, merger or other transfer (and any liquidation, dissolution or
winding up of the Corporation following any such transfer) referred to in this
Section 4, this Warrant shall continue in full force and effect and the terms
hereof shall be applicable to the shares of Stock and property (including cash,
where applicable) receivable upon the exercise of this Warrant after the
consummation of such reorganization, reclassification, sale, consolidation,
merger or other transfer or the effective date of liquidation, dissolution or
winding up of the Corporation following any such transfer, as the case may be,
and shall be binding upon the issuer of any such Stock, including, in the case
of any such transfer, the Person acquiring all or substantially all of the
properties or assets or more than 50% of the voting capital stock of the
Corporation (whether issued and outstanding, newly issued or from treasury or
any combination thereof), whether or not such Person shall have expressly
assumed the terms of this Warrant.

     5. OFFICER'S CERTIFICATE AS TO ADJUSTMENTS. In each case of any adjustment
        ---------------------------------------
or readjustment in the number and kind of Warrant Shares, or property, issuable
hereunder from time to time, or the Exercise Price, the Corporation, at its
expense, will promptly cause an officer of the Corporation to compute such
adjustment or readjustment in accordance with the terms of this Warrant and
prepare a certificate setting forth such adjustment or readjustment and showing
the facts upon which such adjustment or readjustment is based. The Corporation
will forthwith send a copy of each such certificate to the Holder in accordance
with Section 10.5 below.
<PAGE>

                                      -9-

     6. NOTICES OF RECORD DATE, ETC. In the event of
        ---------------------------
     (a) any taking by the Corporation of a record of the holders of Stock for
the purpose of determining the holders thereof who are entitled to receive any
shares of Stock as a dividend or other distribution or pursuant to a stock
split, or

     (b) any reorganization of the Corporation, or any sale or transfer, in a
single transaction or a series of related transactions, of all or substantially
all the assets of the Corporation to, or the consolidation or merger of the
Corporation with or into, any other Person, or

     (c) any voluntary or involuntary dissolution, liquidation or winding-up of
the Corporation, or

     (d) any sale, in a single transaction or a series of related transactions,
of a majority of the Corporation's voting stock (whether newly issued, or from
treasury, or previously issued and then outstanding, or any combination
thereof),

then and in each such event the Corporation will mail or cause to be mailed to
the Holder a notice specifying (i) the date on which any such record is to be
taken for the purpose of such dividend, distribution or stock split, and stating
the amount and character of such dividend, distribution or stock split, or (ii)
the date on which any such reorganization, transfer, consolidation, merger,
dissolution, liquidation or winding-up is to take place, and the time, if any is
to be fixed, as of which the holders of record of any one or more classes of
Stock shall be entitled to exchange their shares of Stock for securities or
other property deliverable on such reorganization, transfer, consolidation,
merger, dissolution, liquidation or winding-up, or (iii) the date on which any
such sale of a majority of the Corporation's voting stock is to take place and
the material terms thereof , as the case may be.  Such notice shall be mailed at
least ten (10) days prior to the date specified in such notice on which any such
action is to be taken.

     7. EXCHANGE OF WARRANT. Subject to the provisions of Section 9 hereof (if
        -------------------
and to the extent applicable), this Warrant shall be exchangeable, upon the
surrender hereof by the Holder at the principal office of the Corporation, for
new warrants of like tenor, each registered in the name of the Holder or in the
name of such other Persons as the Holder may direct. Each of such new warrants
shall be exercisable for such number of Warrant Shares as the Holder shall
direct, provided that all of such new warrants shall represent, in the
        --------
aggregate, the right to purchase the same number of Warrant Shares and cash,
securities or other property, if any, which may be purchased by the Holder upon
exercise of this Warrant at the time of its surrender.

     8. REPLACEMENT OF WARRANT. On receipt of evidence reasonably satisfactory
        ----------------------
to the Corporation of the loss, theft, destruction or mutilation of this Warrant
and, in the case of any such loss, theft or destruction of this Warrant, on
delivery of a customary
<PAGE>

                                      -10-

affidavit of the Holder and an indemnity agreement or, in the case of any such
mutilation, on surrender and cancellation of this Warrant, the Corporation at
its expense will execute and deliver, in lieu thereof, a new warrant of like
tenor.

     9. TRANSFER PROVISIONS, ETC.
        ------------------------

     9.1  LEGENDS.
          -------

          (a) Each certificate representing any Warrant Shares issued upon
exercise of this Warrant shall bear the following legend:

          THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
     AS AMENDED, AND MAY BE TRANSFERRED ONLY PURSUANT TO AN EFFECTIVE
     REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF
     1933, AS AMENDED, OR IN ACCORDANCE WITH AN APPLICABLE EXEMPTION FROM THE
     REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED.

          (b) Each certificate representing any shares of Stock issued from time
to time upon exercise of this Warrant shall also bear any legend required under
any applicable state securities or blue sky laws.

    9.2 MECHANICS OF TRANSFER. Any transfer of all or any portion of this
        ---------------------
Warrant, or of any interest therein, that is otherwise in compliance with
applicable law shall be effected by surrendering this Warrant to the Corporation
at its principal office, together with (i) a duly executed form of assignment,
in the form attached hereto, (ii) payment of any applicable transfer taxes, if
any. In the event of any such transfer of this Warrant, in whole, the
Corporation shall issue a new warrant of like tenor to the transferee,
representing the right to purchase the same number of Warrant Shares, and cash,
securities or other property, if any, which were purchasable by the Holder upon
exercise of this Warrant at the time of its transfer. In the event of any such
transfer of any portion of this Warrant, (i) the Corporation shall issue a new
warrant of like tenor to the transferee, representing the right to purchase the
same number of Warrant Shares, and cash, securities or other property, if any,
which were purchasable by the Holder upon exercise of the transferred portion of
this Warrant at the time of such transfer, and (ii) the Corporation shall issue
a new warrant of like tenor to the Holder, representing the right to purchase
the number of Warrant Shares, and cash, securities or other property, if any,
purchasable by the Holder upon exercise of the portion of this Warrant not
transferred to such transferee. Until this Warrant or any portion thereof is
transferred on the books of the Corporation, the Corporation may treat the
Holder as the absolute holder of this Warrant and all right, title and interest
therein for all purposes, notwithstanding any notice to the contrary.

     9.3. RESTRICTIONS ON TRANSFER. Subject to compliance with applicable
          ------------------------
securities laws and any contractual restrictions to which the Holder may be
subject, this Warrant,
<PAGE>

                                      -11-

and any portion hereof, and the Warrant Shares, may be transferred by the Holder
in its sole discretion at any time to affiliates of the Holder without the
consent of the Corporation. Except as permitted pursuant to the foregoing
sentence, this warrant may not be transferred without the consent of the
Corporation.

     10. GENERAL.
         -------

     10.1 STATEMENT ON WARRANT.  Irrespective of any adjustments in the Exercise
          --------------------
Price or the number or kind of Warrant Shares, this Warrant may continue to
express the same kind of Warrant Shares as are stated on the front page hereof.

     10.2 AUTHORIZED SHARES; RESERVATION OF SHARES FOR ISSUANCE.  At all times
          -----------------------------------------------------
while this Warrant is outstanding, the Corporation shall maintain its corporate
authority to issue, and shall have authorized and reserved for issuance upon
exercise of this Warrant, such number of shares of Stock as shall be sufficient
to perform its obligations under this Warrant (after giving effect to any and
all adjustments to the number and kind of Warrant Shares purchasable upon
exercise of this Warrant).

     10.3 NO IMPAIRMENT. The Corporation will not, by amendment of its
          -------------
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issuance or sale of securities, sale or
other transfer of any of its assets or properties, 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 hereunder against
impairment. Without limiting the generality of the foregoing, the Corporation
(a) will not increase the par value of any shares of Stock receivable upon the
exercise of this Warrant above the amount payable therefor on such exercise, and
(b) will take all action that may be necessary or appropriate in order that the
Corporation may validly and legally issue fully paid and nonassessable shares of
Stock on the exercise of this Warrant.

     10.4 NO RIGHTS AS STOCKHOLDER. The Holder shall not be entitled to vote or
          ------------------------
to receive dividends or to be deemed the holder of Stock that may at any time be
issuable upon exercise of this Warrant for any purpose whatsoever, nor shall
anything contained herein be construed to confer upon the Holder any of the
rights of a stockholder of the Corporation until the Holder shall have exercised
this Warrant and been issued Warrant Shares in accordance with the provisions
hereof.

     10.5 NOTICES. All notices, demands, requests, certificates or other
          -------
communications under this Warrant shall be in writing and shall be either mailed
by certified mail, postage prepaid, in which case such notice, demand, request,
certificate or other communications shall be deemed to have been given three (3)
days after the date on which it is first deposited in the mails, or hand
delivered or sent by facsimile
<PAGE>

                                      -12-

transmission, by tested or otherwise authenticated telex or cable or by private
expedited courier for overnight delivery with signature required, in each such
case, such notice, demand, request, certificate or other communications being
deemed to have been given upon delivery or receipt, as the case may be:

     (i) if to the Corporation, Prime Response, Inc., 150 Cambridge Park Drive,
Cambridge, MA  02140, Attention: President, or at such other address as the
Corporation may have furnished in writing to the Holder; and

     (ii) if to the Holder, at the Holder's address appearing in the books
maintained by the Corporation.

     10.6 AMENDMENT AND WAIVER. No failure or delay of the Holder in exercising
          --------------------
any power or right hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The
rights and remedies of the Holder are cumulative and not exclusive of any rights
or remedies which it would otherwise have.  The provisions of this Warrant may
be amended, modified or waived with (and only with) the written consent of the
Corporation and the Holder.

     10.7 GOVERNING LAW. This Warrant shall be governed by, and construed and
          -------------
enforced in accordance with, the laws of the Commonwealth of Massachusetts.

     10.8 COVENANTS TO BIND SUCCESSOR AND ASSIGNS. All covenants, stipulations,
          ---------------------------------------
promises and agreements in this Warrant contained by or on behalf of the
Corporation shall bind its successors and assigns, whether so expressed or not.

     10.9 SEVERABILITY. In case any one or more of the provisions contained in
          ------------
this Warrant shall be invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby.  The parties shall
endeavor in good faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

     10.10 CONSTRUCTION. The definitions of this Warrant shall apply equally to
           ------------
both the singular and the plural forms of the terms defined.  Wherever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The section and paragraph headings used herein are
for convenience of reference only, are not part of this Warrant and are not to
affect the construction of or be taken into consideration in interpreting this
Warrant.
<PAGE>

                                      -13-

     10.11 REMEDIES. The Holder, in addition to being entitled to exercise all
           --------
rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Warrant. The Corporation agrees
that monetary damages would not be adequate compensation for any loss incurred
by reason of a breach by it of the provisions of this Warrant and hereby agrees
to waive the defense in any action for specific performance that a remedy at law
would be adequate. In any action or proceeding brought to enforce any provision
of this Warrant or where any provision hereof is validly asserted as a defense,
the successful party to such action or proceeding shall be entitled to recover
reasonable attorneys' fees in addition to any other available remedy.

                    [rest of page intentionally left blank]
<PAGE>

                                      -14-

     IN WITNESS WHEREOF, the Corporation has caused this Common Stock Purchase
Warrant to be executed as an instrument under seal in its corporate name by one
of its officers thereunto duly authorized, all as of the day and year first
above written.

                                     PRIME RESPONSE, INC.
[Corporate Seal]

                                     By: /s/ Frederick H. Phillips
                                         ---------------------------------
                                         Name: Frederick H. Phillips
                                         Title: Secretary, Treasury,
                                                Senior Vice President and
                                                Chief Executive Officer
<PAGE>

                             FORM OF SUBSCRIPTION

                   (To be executed upon exercise of Warrant)

To:  PRIME RESPONSE, INC.

     The undersigned hereby irrevocably elects to exercise the right of purchase
represented by the attached Warrant for, and to exercise thereunder, _______
shares of Common Stock, $.01 par value per share ("Common Stock"), of Prime
                                                   ------ -----
Response, Inc., a Delaware corporation, and tenders herewith payment of
$__________, representing the aggregate purchase price for such shares based on
the price per share provided for in such Warrant.  Such payment is being made in
accordance with [Section 2.1(b)(i)] [Section 2.1(b)(ii)] [Section 2.1(b)(iii)]
of the attached Warrant.

     Please issue a certificate or certificates for such shares of Common Stock
in the following name or names and denominations and deliver such certificate or
certificates to the person or persons listed below at their respective addresses
set forth below:

Dated:
       ---------------------          --------------------------------

                                      --------------------------------
                                      (Address)

     If said number of shares of Common Stock shall not be all the shares of
Common Stock issuable upon exercise of the attached Warrant, a new Warrant is to
be issued in the name of the undersigned for the balance remaining of such
shares of Common Stock less any fraction of a share of Common Stock paid in
cash.

Dated:
       ---------------, ----           ---------------------------------
                                       NOTE: The above signature should
                                       correspond exactly with the name on the
                                       face of the attached Warrant or with the
                                       name of the assignee appearing in the
                                       assignment form below.
<PAGE>

                              FORM OF ASSIGNMENT

                  (To be executed upon assignment of Warrant)

     For value received, _____________________________________ hereby sells,
assigns and transfers unto _________________ the attached Warrant [__% of the
attached Warrant], together with all right, title and interest therein, and does
hereby irrevocably constitute and appoint ___________________________ attorney
to transfer said Warrant [said percentage of said Warrant] on the books of Prime
Response, Inc., a Delaware corporation, with full power of substitution in the
premises.

     If not all of the attached Warrant is to be so transferred, a new Warrant
is to be issued in the name of the undersigned for the balance of said Warrant.

Dated:
       --------------, ----            ---------------------------------
                                       NOTE: The above signature should
                                       correspond exactly with the name on the
                                       face of the attached Warrant.

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