Sec Form 4 Filing - Cebula Gary M @ Bridgeline Software, Inc. - 2008-10-24

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person Cebula Gary M 2. Issuer Name and Ticker or Trading Symbol Bridgeline Software, Inc. [ BLSW] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) Exec. V.P., Treasurer and CFO (Last) (First) (Middle) C/O BRIDGELINE SOFTWARE, 10 SIXTH ROAD 3. Date of Earliest Transaction (MM/DD/YY) 10/24/2008 (Street) WOBURN, MA01801 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 107,666 D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Stock Option (right to buy) $ 0.9 10/24/2008 A 180,000 ( 1 ) 10/19/2018 Common Stock 180,000 $ 0 ( 2 ) 180 ,000 D Stock Option (right to buy) $ 1.76 10/24/2008 D 20,000 ( 3 ) 08/19/2018 Common Stock 20,000 $ 0 ( 2 ) 0 D Stock Option (right to buy) $ 3.69 10/24/2008 D 10,000 ( 4 ) 10/26/2017 Common Stock 10,000 $ 0 ( 2 ) 0 D Stock Option (right to buy) $ 3.75 10/24/2008 D 25,000 ( 5 ) 04/23/2017 Common Stock 25,000 $ 0 ( 2 ) 0 D Stock Option (right to buy) $ 3.75 10/24/2008 D 100,000 ( 6 ) 06/01/2015 Common Stock 100,000 $ 0 ( 2 ) 0 D Stock Option (right to buy) $ 3 10/24/2008 D 25,000 ( 6 ) 02/01/2013 Common Stock 25,000 $ 0 ( 2 ) 0 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Cebula Gary M C/O BRIDGELINE SOFTWARE 10 SIXTH ROAD WOBURN, MA01801 Exec. V.P., Treasurer and CFO Signatures /s/ Gary Cebula 10/28/2008 Signature of Reporting Person Date

Explanation of Responses:

( 1 )This option becomes exercisable with respect to 1/3 of the underlying shares on each of October 9, 2009, October 9, 2010 and October 9, 2011. ( 2 )The reporting person agreed to cancellation of options granted to him on February 1, 2003, June 1, 2005, April 23, 2007, October 26, 2007 and August 19, 2008, in exchange for a new option to purchase the same number of shares having a lower exercise price. ( 3 )This option would have become exercisable with respect to 1/3 of the underlying shares on each of August 19, 2009, August 19, 2010 and August 19, 2011. ( 4 )This option would have become exercisable with respect to 1/3 of the underlying shares on each of October 26, 2008, October 26, 2009 and October 26, 2010. ( 5 )This option became exercisable with respect to 1/3 of the underlying shares on each of April 23, 2008, April 23, 2009 and April 23, 2010. ( 6 )This option was immediately exercisable in full.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

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