Document:

Amendment to Rights Agreement

 Exhibit 4.1 
 AMENDMENT TO RIGHTS AGREEMENT 
 THIS
AMENDMENT NO. 1 TO RIGHTS AGREEMENT (the “Amendment”) is made as of the 14th day of March, 2010, by and between
CHORDIANT SOFTWARE, INC., a Delaware corporation (the “Company”), and AMERICAN STOCK TRANSFER & TRUST
CO. LLC (the “Rights Agent”). 
 WHEREAS, the Company is
entering into an Agreement and Plan of Merger (as the same may be amended from time to time, the “Merger Agreement”), by and among the Company, Pegasystems Inc., a Massachusetts corporation (“Parent”),
and Maple Leaf Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of Parent (“Acquisition Sub”), pursuant to which Acquisition Sub will make a tender offer (the “Offer”) to acquire
all of the issued and outstanding shares of common stock of the Company and, after acquiring such shares, merge with and into the Company, upon the terms and subject to the conditions set forth in the Merger Agreement (the
“Merger”) and the Company will continue as the surviving corporation of the Merger in accordance with the General Corporation Law of the State of Delaware; 
 WHEREAS, the Company and the Rights Agent are parties to that certain Rights Agreement, dated as of July 10, 2008
(the “Rights Agreement”); 
 WHEREAS, Section 27 of the Rights
Agreement permits the Company and the Rights Agent to amend the Rights Agreement on the terms set forth in this Amendment; 
 WHEREAS, the Company desires to amend the Rights Agreement in connection with the execution and delivery of the Merger Agreement; and 
 WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of the Company and its stockholders to modify the terms of the Rights Agreement to
exempt the Offer, the Merger, the Merger Agreement and the transactions contemplated thereby from the application of the Rights Agreement and has approved this Amendment and authorized its appropriate officers to execute and deliver the same to the
Rights Agent. 
 NOW, THEREFORE, in accordance with the procedures for amendment of the
Rights Agreement set forth in Section 27 thereof, and in consideration of the foregoing and the mutual agreements herein set forth, the parties hereby agree as follows: 
 1. Capitalized terms that are not otherwise defined herein shall have the meanings ascribed to them in the Rights Agreement.

 2. The definition of “Acquiring Person” set forth in Section 1(a) of the Rights Agreement is
amended and supplemented by adding the following sentence to the end of that section: 
 Notwithstanding anything
in this Agreement to the contrary, neither Pegasystems Inc., a Massachusetts corporation (“Parent”), nor any of its Affiliates or Associates, shall be or become an Acquiring Person by reason of, and the term Acquiring Person shall not
include Parent or any of its Affiliates or Associates by reason of, (i) the approval, execution, delivery or performance of the Agreement and Plan of Merger, dated as of March 14, 2010, by and among Parent, Maple Leaf Acquisition Corp., a Delaware
corporation and a wholly-owned subsidiary of Parent (“Acquisition Sub”), and the Company (such Agreement and Plan of Merger, as the same may be amended from time to time, is referred to in this Agreement as the “Merger
Agreement”), (ii) the acceptance for payment or purchase by Acquisition Sub of Common Shares pursuant to a tender offer to acquire all of the outstanding Common Shares to be commenced by Acquisition Sub pursuant to, and on the terms and subject
to the conditions set forth in, the Merger Agreement (such tender offer, as it may be amended and/or extended from time to time pursuant to the terms of the Merger Agreement, is referred to in this Agreement as the “Offer”), (iii) the
merger of Acquisition Sub with and into the Company pursuant to, and on the terms and subject to the conditions set forth in, the Merger Agreement (such merger is referred to in this Agreement as the “Merger”), (iv) the consummation of any
other transaction contemplated by the Merger Agreement, or (v) the announcement of the Merger Agreement, the Offer, the Merger or any other transaction contemplated by the Merger Agreement. 
  

 1. 

 3. The definition of “Interested Stockholder” set forth in
Section 1(j) of the Rights Agreement is amended and supplemented by adding the following sentence to the end of that section: 
 Notwithstanding anything in this Agreement to the contrary, neither Parent, nor any of its Affiliates or Associates shall be or become an Interested Stockholder by reason of, and the term Interested
Stockholder shall not include Parent or any of its Affiliates or Associates by reason of, (i) the approval, execution, delivery or performance of the Merger Agreement, (ii) the acceptance for payment or purchase by Acquisition Sub of
Common Shares pursuant to the Offer, (iii) the Merger, (iv) the consummation of any other transaction contemplated by the Merger Agreement, or (v) the announcement of the Merger Agreement, the Offer, the Merger or any other
transaction contemplated by the Merger Agreement. 
 4. The definition of “Shares Acquisition Date” in
Section l(o) of the Rights Agreement is hereby amended and supplemented by adding the following sentence to the end of that section: 
 Notwithstanding anything in this Agreement to the contrary, no Shares Acquisition Date shall be deemed to have occurred by reason of (i) the approval, execution, delivery or performance of the Merger
Agreement, (ii) the acceptance for payment or purchase by Acquisition Sub of Common Shares pursuant to the Offer, (iii) the Merger, (iv) the consummation of any other transaction contemplated by the Merger Agreement, or (v) the
announcement of the Merger Agreement, the Offer, the Merger or any other transaction contemplated by the Merger Agreement. 
  

 2. 

 5. Section 3(a) of the Rights Agreement is hereby amended and supplemented by
adding the following sentence to the end of that section: 
 Notwithstanding anything in this Agreement to the
contrary, no Distribution Date shall be deemed to have occurred by reason of (i) the approval, execution, delivery or performance of the Merger Agreement, (ii) the acceptance for payment or purchase by Acquisition Sub of Common Shares
pursuant to the Offer, (iii) the Merger, (iv) the consummation of any other transaction contemplated by the Merger Agreement, or (v) the announcement of the Merger Agreement, the Offer, the Merger or any other transaction contemplated
by the Merger Agreement. 
 6. Section 7(a) is amended by deleting the word “or” before
Section 7(a)(iii) and by adding the following clause at the end of Section 7(a): 
 , or (iv) the
moment in time immediately prior to the Effective Time (as such term is defined in the Merger Agreement). 
 7.
Section 11(a)(ii) of the Rights Agreement is hereby amended and supplemented by adding the following sentence to the end of that section: 
 Notwithstanding anything else set forth in this Agreement, no event requiring an adjustment under this Section 11(a) shall be deemed to have occurred by reason of (i) the approval, execution,
delivery or performance of the Merger Agreement, (ii) the acceptance for payment or purchase by Acquisition Sub of Common Shares pursuant to the Offer, (iii) the Merger, (iv) the consummation of any other transaction contemplated by
the Merger Agreement, or (v) the announcement of the Merger Agreement, the Offer, the Merger or any other transaction contemplated by the Merger Agreement. 
 8. Sections 13(a) of the Rights Agreement is hereby amended and supplemented by adding the following sentence to the end of that section: 
 Notwithstanding anything in this Agreement to the contrary, none of the events described in clauses “(x)” through
“(z)” of the first sentence of this Section 13(a) shall be deemed to have occurred as a result of (i) the approval, execution, delivery or performance of the Merger Agreement, (ii) the acceptance for payment or purchase by
Acquisition Sub of Common Shares pursuant to the Offer, (iii) the Merger, (iv) the consummation of any other transaction contemplated by the Merger Agreement, or (v) the announcement of the Merger Agreement, the Offer, the Merger or
any other transaction contemplated by the Merger Agreement. 
  

 3. 

 9. The first phrase of Section 13(c) of the Rights Agreement is hereby amended
to read in its entirety as follows, with the remaining portion of Section 13(c) being unchanged and remaining in full force and effect: 
 The Company shall not consummate any such consolidation, merger (other than any such transaction contemplated by the Merger Agreement, including the Offer and the Merger), sale or transfer unless the
Principal Party shall have a sufficient number of authorized Common Shares that have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 13 and unless prior thereto the Company
and each Principal Party and each other Person who may become a Principal Party as a result of such consolidation, merger, sale or transfer shall have (i) executed and delivered to the Rights Agent a supplemental agreement providing for the
terms set forth in paragraphs (a) and (b) of this Section 13 and (ii) prepared, filed and had declared and remain effective a registration statement under the Act on the appropriate form with respect to the Rights and the
securities exercisable upon exercise of the Rights and further providing that, as soon as practicable after the date of any consolidation, merger, sale or transfer of assets mentioned in paragraph (a) of this Section 13, the Principal
Party at its own expense will: 
 10. Section 13(d)(i) of the Rights Agreement is hereby amended to read in its
entirety as follows: 
 (i) consolidate with (other than by any transaction contemplated by the Merger Agreement,
including the Offer and the Merger), 
 11. Section 13(d)(ii) of the Rights Agreement is hereby amended to read in
its entirety as follows: 
 (ii) merge with or into (other than by any transaction contemplated by the Merger
Agreement, including the Merger), 
 12. Section 30 of the Rights Agreement is hereby amended and supplemented by
adding the following sentence to the end of that section: 
 Nothing in this Agreement shall be construed to give
any holder of Rights or any other Person any legal or equitable rights, remedies or claims under this Agreement by virtue of (i) the approval, execution and delivery of the Merger Agreement, (ii) the acceptance for payment or purchase by
Acquisition Sub of Common Shares pursuant to the Offer, (iii) the Merger, (iv) the consummation of any other transaction contemplated by the Merger Agreement, or (v) the announcement of the Merger Agreement, the Offer, the Merger or
any other transaction contemplated by the Merger Agreement. 
 13. This Amendment shall be deemed to be in force and
effect immediately prior to the execution of the Merger Agreement. 
 14. The Rights Agreement, as amended by this
Amendment, shall remain in full force and effect in accordance with its terms. To the extent there is a conflict between the terms and provisions of the Rights Agreement and this Amendment, the terms and provisions of this Amendment shall govern for
purposes of the subject matter of this Amendment only. 
 15. All of the covenants and provisions of this Amendment by or
for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 
  

 4. 

 16. Nothing in this Amendment shall be construed to give to any person or corporation
other than the Company, Parent, Acquisition Sub, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares) any legal or equitable right, remedy or claim under this Amendment; but
this Amendment shall be for the sole and exclusive benefit of the Company, Parent, Acquisition Sub, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares). 
 17. If any term, provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction or other authority
to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Amendment shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 
 18. This Amendment shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be
governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely within such State. 
 19. This Amendment may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together
constitute but one and the same instrument. 
  

 5. 

 IN WITNESS WHEREOF, the parties herein
have caused this Amendment to be duly executed and attested, all as of the date and year first above written. 
  

			
	CHORDIANT SOFTWARE, INC.
		
	By:	 	 /s/ Steven R. Springsteel

	Name:	 	 Steven R. Springsteel

	Title:	 	 Chairman, President & CEO

	
	AMERICAN STOCK TRANSFER & TRUST CO. LLC
		
	By:	 	 /s/ Herbert J. Lemmer

	Name:	 	 Herbert J. Lemmer

	Title:	 	 Vice President

 AMENDMENT TO RIGHTS AGREEMENTJoinder and Amendment to Amended and Restated Investor Rights Agreement

 Exhibit 4.1 
 Execution Version 
 JOINDER AND AMENDMENT TO AMENDED AND
RESTATED INVESTOR RIGHTS AGREEMENT 
 THIS JOINDER AND AMENDMENT TO AMENDED AND RESTATED INVESTOR
RIGHTS AGREEMENT (this “Agreement”) is made and entered into this 12th day of March, 2010 by and among The Princeton Review, Inc., a Delaware corporation (the “Company”), the persons set forth on the signature pages hereto as “New
Purchasers” (the “New Purchasers”), the persons set forth on the signature pages hereto as the “Existing Purchasers” (the “Existing Purchasers”) and the persons set forth on the
signature pages hereto as the “Common Stockholders” (the “Stockholders”). Terms used and not otherwise defined herein shall have the meanings set forth in the Amended and Restated Investor Rights Agreement by and
among the Company, the Existing Purchasers and the Stockholders, dated as of December 7, 2009 (the “Investor Rights Agreement”). 
 RECITALS 
 WHEREAS, the Company, the New Purchasers and the Existing
Purchasers are parties to a Joinder and Amendment to Series E Preferred Stock Purchase Agreement dated as of the date hereof (the “Joinder and Amendment to Series E Preferred Stock Purchase Agreement”), providing for the
purchase by the New Purchasers of shares of Series E Preferred Stock; 
 WHEREAS, the Company, the Existing Purchasers and the
Stockholders entered into the Investor Rights Agreement, providing the Existing Purchasers and the Stockholders with certain registration rights and preemptive rights on future issuances of equity securities of the Company; 
 WHEREAS, the Existing Purchasers and the Stockholders constitute the holders of shares representing at least eighty-five percent
(85%) of the outstanding shares of Restricted Stock, as required for amendment or waiver of the Investor Rights Agreement pursuant to Section 10(d) thereof (the “Required Holders”); and 
 WHEREAS, it is a condition to the obligations of the New Purchasers under the Joinder and Amendment to Series E Preferred Stock Purchase
Agreement that this Agreement be executed by the parties hereto, and the parties are willing to execute this Agreement and to be bound by the provisions hereof; 
 WHEREAS, the Company, Existing Purchasers and the Stockholders desire to amend certain provisions of the Investor Rights Agreement to join the New Purchasers thereto. 

 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties and covenants herein contained, the parties
hereto, intending to be legally bound, hereby agree as follows: 
 1. Amendment to the Investor Rights Agreement.
Pursuant to Section 10(d) of the Investor Rights Agreement, in the third recital thereof the number “94,000” shall be deleted and replaced with “104,000”. 
 2. Investor Rights Agreement Joinder. Each New Purchaser hereby agrees, effective as of the date hereof, to become a party to the
Investor Rights Agreement and for all purposes of the Investor Rights Agreement such New Purchaser shall be included within the term “Purchasers.” 
 3. Conditions of Parties’ Obligations. 
 3.1. Conditions of the New
Purchasers’ Obligations. The effectiveness of this Agreement is subject to the fulfillment of the following conditions. 
 (a) Joinder and Amendment to Amended and Restated Investor Rights Agreement. This Agreement shall have been executed and delivered by (i) the Company, (ii) the New Purchasers,
(iii) the Existing Purchasers and (iv) the Required Holders. 
 (b) Joinder and Amendment to Series
E Preferred Stock Purchase Agreement. The Joinder and Amendment to Series E Preferred Stock Purchase Agreement shall have been executed and delivered by (i) the Company, (ii) the New Purchasers and (iii) the holders of at least
eighty-five percent (85%) of the New Preferred Stock (as defined therein). 
 4. Prior Agreement. By execution of
this Agreement, the Company, the Existing Purchasers and the Stockholders executing the same, holding in the aggregate a sufficient number of the outstanding shares of Restricted Stock to amend the Investor Rights Agreement in accordance with
Section 10(d) thereof, hereby agree that the provisions set forth in the Investor Rights Agreement are hereby amended as set forth herein, and hereby consent in all respects to the joinder of each New Purchaser to the Investor Rights Agreement
as a “Purchaser.” The Investor Rights Agreement, as amended by this Agreement, contains the entire agreement among the parties with respect to the subject matter thereof and hereof and shall be read and construed together as a single
agreement. Except to the extent amended hereby, all of the terms, provisions and conditions of the Investor Rights Agreement are hereby ratified and confirmed and shall remain in full force and effect as of the date specified therein. 
  

 - 2 - 

 5. Miscellaneous. 
 5.1. Headings. The headings of the Sections and paragraphs of this Agreement have been inserted for convenience of reference only and
do not constitute a part of this Agreement. 
 5.2. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its conflict of law principles. 
 5.3. Counterparts;
Effectiveness. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, with the same effect as if all parties had signed the same document. All such counterparts shall be deemed an
original, shall be construed together and shall constitute one and the same instrument. This Agreement shall become effective when each party hereto shall have received counterparts hereof signed by all of the other parties hereto. 
 5.4. Severability. If any provision of this Agreement shall be found by any court of competent jurisdiction to be invalid or
unenforceable, the parties hereby waive such provision to the extent that it is found to be invalid or unenforceable. Such provision shall, to the maximum extent allowable by law, be modified by such court so that it becomes enforceable, and, as
modified, shall be enforced as any other provision hereof, all the other provisions hereof continuing in full force and effect. 
 [Remainder of Page Intentionally Left Blank] 
  

 - 3 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Joinder and Amendment to Amended and
Restated Investor Rights Agreement to be duly executed as of the day and year first above written. 
  

			
	THE COMPANY
	
	THE PRINCETON REVIEW, INC.
		
	By:	 	 /s/ Stephen Richards

	Name:	 	Stephen Richards
	Title:	 	Chief Operating Officer and Chief Financial Officer

 [Signature page to Joinder and Amendment to Amended and Restated Investor Rights Agreement] 

			
	NEW PURCHASERS:
	
	CAMDEN PARTNERS STRATEGIC FUND IV, L.P.
		
	By:	 	Camden Partners Strategic IV, LLC, its general partner
	By:	 	Camden Partners Strategic Manager, LLC, its managing member
		
	By:	 	 /s/ David L. Warnock

	Name:	 	David L. Warnock
	Title:	 	Managing Member
	
	CAMDEN PARTNERS STRATEGIC FUND IV-A, L.P.
		
	By:	 	Camden Partners Strategic IV, LLC, its general partner
	By:	 	Camden Partners Strategic Manager, LLC, its managing member
		
	By:	 	 /s/ David L. Warnock

	Name:	 	David L. Warnock
	Title:	 	Managing Member

 [Signature page to
Joinder and Amendment to Amended and Restated Investor Rights Agreement] 

			
	EXISTING PURCHASERS:
	
	BAIN CAPITAL VENTURE FUND 2007, L.P.
		
	By:	 	Bain Capital Venture Partners, L.P., its general partner
	By:	 	Bain Capital Investors, LLC, its general partner
		
	By:	 	 /s/ Jeff Crisan

	Name:	 	Jeff Crisan
	Title:	 	Managing Director
	
	BCVI-TPR INTEGRAL L.P.
		
	By:	 	Bain Capital Venture Investors, LLC
		
	By:	 	 /s/ Jeff Crisan

	Name:	 	Jeff Crisan
	Title:	 	Managing Director
	
	BCIP VENTURE ASSOCIATES
		
	By:	 	Bain Capital Investors, LLC, its managing partner
	By:	 	Bain Capital Venture Investors, LLC, its attorney-in-fact
		
	By:	 	 /s/ Jeff Crisan

	Name:	 	Jeff Crisan
	Title:	 	Managing Director
	
	BCIP VENTURE ASSOCIATES-B
		
	By:	 	Bain Capital Investors, LLC, its managing partner
	By:	 	Bain Capital Venture Investors, LLC, its attorney-in-fact
		
	By:	 	 /s/ Jeff Crisan

	Name:	 	Jeff Crisan
	Title:	 	Managing Director
	
	RGIP, LLC
		
	By:	 	 /s/ Ann L. Milner

	Name:	 	Ann L. Milner
	Title:	 	Managing Member

 [Signature page to
Joinder and Amendment to Amended and Restated Investor Rights Agreement] 

			
	PRIDES CAPITAL FUND I LP
		
	By:	 	Prides Capital Partners, L.L.C., its general partner
		
	By:	 	 /s/ Kevin A. Richardson II

	Name:	 	Kevin A. Richardson II
	Title:	 	Partner
	
	FALCON STRATEGIC PARTNERS III, LP
		
	By:	 	Falcon Strategic Investments III, LP, its general partner
	By:	 	Falcon Strategic Investments GP III, LLC, its general partner
		
	By:	 	 /s/ Eric Rogoff

	Name:	 	Eric Rogoff
	Title:	 	Director
	
	FALCON MEZZANINE PARTNERS II, LP
		
	By:	 	Falcon Mezzanine Investments II, LLC, its general partner
		
	By:	 	 /s/ Eric Rogoff

	Name:	 	Eric Rogoff
	Title:	 	Vice President
	
	FMP II CO-INVESTMENT, LLC
		
	By:	 	 /s/ Eric Rogoff

	Name:	 	Eric Rogoff
	Title:	 	Vice President
	
	SANKATY CREDIT OPPORTUNITIES IV, L.P.
		
	By:	 	 /s/ Michael Ewald

	Name:	 	Michael Ewald
	Title:	 	Managing Director

 [Signature page to
Joinder and Amendment to Amended and Restated Investor Rights Agreement] 

			
	COMMON STOCKHOLDERS:
		
	By:	 	 /s/ Michael J. Perik

	Name:	 	Michael J. Perik

 [Signature page to
Joinder and Amendment to Amended and Restated Investor Rights Agreement]

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