<SEC-DOCUMENT>0001437749-18-018677.txt : 20181024
<SEC-HEADER>0001437749-18-018677.hdr.sgml : 20181024
<ACCEPTANCE-DATETIME>20181024114744
ACCESSION NUMBER:		0001437749-18-018677
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20181022
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20181024
DATE AS OF CHANGE:		20181024

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Bridgeline Digital, Inc.
		CENTRAL INDEX KEY:			0001378590
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				522263942
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33567
		FILM NUMBER:		181135843

	BUSINESS ADDRESS:	
		STREET 1:		80 BLANCHARD ROAD
		CITY:			BURLINGTON
		STATE:			MA
		ZIP:			01803
		BUSINESS PHONE:		781 376 5555

	MAIL ADDRESS:	
		STREET 1:		80 BLANCHARD ROAD
		CITY:			BURLINGTON
		STATE:			MA
		ZIP:			01803

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Bridgeline Software, Inc.
		DATE OF NAME CHANGE:	20061018
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>blin20181023_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>SECURITIES AND EXCHANGE COMMISSION</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Washington, D.C. 20549</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:12pt;margin:0pt;text-align:center;"><b>FORM 8-K</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>CURRENT REPORT</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>PURSUANT TO SECTION 13 OR 15(d) OF </b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>THE SECURITIES EXCHANGE ACT OF 1934</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">Date of Report (Date of earliest event reported): <b>October 22</b><b>, 2018</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><u><b>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;BRIDGELINE DIGITAL, INC.&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</b></u></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Exact name of registrant as specified in its charter)</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

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			<td style="width: 33%; text-align: center; border-bottom: thin solid rgb(0, 0, 0);"><b>Delaware</b></td>
			<td style="width: 33%; text-align: center; border-bottom: thin solid rgb(0, 0, 0);"><b>001-33567</b></td>
			<td style="width: 33%; text-align: center; border-bottom: thin solid rgb(0, 0, 0);"><b>52-2263942</b></td>
		</tr>
		<tr>
			<td style="text-align: center;">(State or other</td>
			<td style="text-align: center;">(Commission</td>
			<td style="text-align: center;">(IRS Employer</td>
		</tr>
		<tr>
			<td style="text-align: center;">jurisdiction of</td>
			<td style="text-align: center;">File Number)</td>
			<td style="text-align: center;">Identification No.)</td>
		</tr>
		<tr>
			<td style="text-align: center;">incorporation)</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
		</tr>

</table>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>80 Blanchard Road</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><u><b>Burlington, MA 01803</b></u></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Address of principal executive offices, including zip code)</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><u><b>(</b></u><u><b>781) 376-5555&nbsp; &nbsp;&nbsp;</b></u></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Registrant&rsquo;s telephone number, including area code)</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>&nbsp;</b>&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">(Former name or former address, if changed since last report)</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">[&nbsp; ] Written communications pursuant to Rule 425 under the Securities Act</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">[&nbsp; ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">[&nbsp; ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">[&nbsp; ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Exchange Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;text-indent:0.1pt;">Emerging growth company [&nbsp; ]</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [&nbsp; ]</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

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<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Item</b><b> 1.</b><b>0</b><b>1</b><b>.&nbsp; &nbsp;</b><b>Entry into a Material Definitive Agreement</b><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:45.8pt;">On October 22, 2018, Bridgeline Digital, Inc. (the &ldquo;Company&rdquo;) signed an amendment (the &ldquo;Second Amendment&rdquo;) to modify a certain Loan and Security Agreement (the &ldquo;Agreement&rdquo;) with Montage Capital II, L.P. (&ldquo;Montage&rdquo;). Included in the Second Amendment are modifications to financial covenants set forth in&nbsp;Sections 5.3(a) - (c) of the Agreement. The modification to Section 5.3(a) addresses the minimum asset coverage ratio and the modification to Section 5.3(b) addresses the Performance to Plan &ndash; Adjusted EBITDA metrics for the fiscal quarters ended September 30, 2018 and December 31, 2018. The modification to Section 6.9(c) addresses the minimum unrestricted cash requirements for the Company&rsquo;s accounts at Heritage Bank of Commerce upon repayment of Subordinated Debt incurred by the Company pursuant to certain Term Notes issued by the Company on September 7, 2018 in the principal amount of $941,176.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Item&nbsp;9.01 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.</b></p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;<i>Explanatory Note Regarding Exhibits</i></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:46.7pt;">Investors should not rely on or assume the accuracy of representations and warranties in negotiated agreements that have been publicly filed because such representations and warranties may be subject to exceptions and qualifications contained in separate disclosure schedules, because such representations may represent the parties&rsquo; risk allocation in the particular transaction, because such representations may be qualified by materiality standards that differ from what may be viewed as material for securities laws purposes or because such representations may no longer continue to be true a of any given date.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">(d) Exhibits.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:46.7pt;">&nbsp;</p>

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		<tr>
			<td style="width: 15%;"><u>Exhibit&nbsp;No.</u></td>
			<td style="width: 85%;"><u>Exhibit&nbsp;Description</u></td>
		</tr>
		<tr>
			<td style="width: 15%;">&nbsp;</td>
			<td style="width: 85%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="width: 15%;">10.1</td>
			<td style="width: 85%;"><a href="ex_125992.htm" style="-sec-extract:exhibit;">Second Amendment to the Loan and Security Agreement between Bridgeline Digital, Inc. and Montage Capital II, L.P., dated October 22, 2018</a></td>
		</tr>

</table>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

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<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>SIGNATURES</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">&nbsp;</p>

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			<td valign="top" width="50%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td colspan="2" valign="top" width="38%">
			<p style="margin-top: 0; margin-bottom: 0;"><b>BRIDGELINE </b><b>DIGITAL</b><b>, INC.</b></p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
		</tr>
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			<td valign="top" width="50%">&nbsp;</td>
			<td colspan="2" valign="top" width="38%">(Registrant)</td>
			<td valign="top" width="12%">&nbsp;</td>
		</tr>
		<tr>
			<td valign="top" width="50%">&nbsp;</td>
			<td colspan="2" valign="top" width="38%">&nbsp;</td>
			<td valign="top" width="12%">&nbsp;</td>
		</tr>
		<tr>
			<td valign="top" width="50%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td valign="top" width="3%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td valign="top" width="35%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
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		</tr>
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			<td valign="top" width="50%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td valign="top" width="3%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td align="left" nowrap="nowrap" valign="bottom" width="35%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
		</tr>
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			<td align="left" style="text-align: left;" valign="top" width="50%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td style="text-align: left" valign="top" width="3%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">By: </font></p>
			</td>
			<td align="left" nowrap="nowrap" style="BORDER-BOTTOM: #000000 1px solid" valign="top" width="35%">
			<p style="margin-top: 0; margin-bottom: 0;">/s/ Carole Tyner</p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
		</tr>
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			<td valign="top" width="50%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td valign="top" width="3%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td valign="top" width="35%">
			<p style="margin-top: 0; margin-bottom: 0;">Carole Tyner</p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
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			<td valign="top" width="50%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td valign="top" width="3%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
			<td valign="top" width="35%">
			<p style="margin-top: 0; margin-bottom: 0;">Chief Financial Officer</p>
			</td>
			<td valign="top" width="12%">
			<p style="margin-top: 0; margin-bottom: 0;"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>
			</td>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:58.3%;margin-right:0pt;margin-top:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:58.3%;margin-right:0pt;margin-top:0pt;text-align:left;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Date: October 24, 2018</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

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<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>EXHIBIT INDEX</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Exhibit No.</b></p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>Exhibit Description</b></p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&nbsp;</p>

			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;">&nbsp; &nbsp; &nbsp;10.1</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Second Amendment to the Loan and Security Agreement between Bridgeline Digital, Inc. and Montage Capital II, L.P., dated October&nbsp;22, 2018</p>
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex_125992.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<p style="margin-bottom: 0px; text-align: right; margin-top: 0px"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt"><b>Exhibit 10.1</b></font></p>

<p style="margin-bottom: 0px; text-align: left; margin-top: 0px"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>SECOND AMENDMENT<br>
TO</b><br>
<u><b>LOAN AND SECURITY AGREEMENT </b></u></p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">This Second Amendment to Loan and Security Agreement is entered into as of October 22, 2018 (the &ldquo;Amendment&rdquo;), by and between MONTAGE CAPITAL II, L.P. (&ldquo;Lender&rdquo;) and BRIDGELINE DIGITAL, INC. (&ldquo;Borrower&rdquo;).</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><u>RECITALS</u></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">Borrower and Lender are parties to that certain Loan and Security Agreement dated as of October 10, 2017 and as amended from time to time, including pursuant to that certain First Amendment to Loan and Security Agreement dated as of May 10, 2018 (collectively, the &ldquo;Agreement&rdquo;). The parties desire to amend the Agreement in accordance with the terms of this Amendment.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">NOW, THEREFORE, the parties agree as follows:</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.3 of the Agreement is amended and restated in its entirety to read as follows:</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:72pt;margin-right:36pt;margin-top:0pt;text-align:justify;">5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Covenants.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:72pt;margin-right:36pt;margin-top:0pt;text-align:justify;text-indent:36pt;">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Asset Coverage Ratio</u>. Borrower shall maintain, at all times and measured as of the last day of each month, a ratio of (i) Eligible Accounts <i>plus</i> Eligible Foreign Accounts plus Borrower&#39;s unrestricted cash maintained in accounts that are subject to an account control agreement in favor of Lender to (ii) all outstanding Obligations owing to Lender, of no less than 1.40 : 1.00.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:72pt;margin-right:36pt;margin-top:0pt;text-align:justify;text-indent:36pt;">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Performance to Plan - Adjusted EBITDA</u>. Borrower&rsquo;s minimum quarterly Adjusted EBITDA for the fiscal quarters ended on September 30, 2018, and ending on December 31, 2018, shall be at least the amount set forth on Exhibit A attached hereto. Borrower and Bank shall mutually agree upon minimum quarterly Adjusted EBITDA amounts for subsequent fiscal quarters no later than October 31, 2018.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:72pt;margin-right:36pt;margin-top:0pt;text-align:justify;text-indent:36pt;">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Minimum Cash</u>. Borrower shall maintain at all times at least $250,000 in unrestricted cash in its accounts that are subject to an account control agreement in favor of Lender. At all times on and after any repayment is made on the Subordinated Debt incurred by Borrower on or around September 7, 2018 pursuant to certain Term Notes issued by Borrower in the aggregate principal amount of $941,176, Borrower shall maintain at all times at least $500,000 in unrestricted cash in its accounts that are subject to an account control agreement in favor of Lender.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit A to the Agreement is replaced in its entirety with the Exhibit A attached hereto.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit B to the Agreement is deleted in its entirety.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Lender under the Agreement, as in effect prior to the date hereof. Borrower ratifies and reaffirms the continuing effectiveness of all agreements entered into in connection with the Agreement.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a &ldquo;.pdf&rdquo; format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or &ldquo;.pdf&rdquo; signature page were an original hereof.</p>

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<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a condition to the effectiveness of this Amendment, Lender shall have received, in form and substance satisfactory to Lender, the following:</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:72pt;">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;payment of an amendment fee in the amount of $2,500 plus all Lender Expenses incurred through the date of this Amendment; and</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:72pt;">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such other documents, and completion of such other matters, as Lender may reasonably deem necessary or appropriate.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.</p>

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			<td style="vertical-align:top;width:45.3%;">&nbsp;</td>
			<td style="vertical-align:top;width:54.7%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">BRIDGELINE DIGITAL, INC.</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">By: /s/Carole Tyner</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Name: Carole Tyner<br>
			<br>
			Title: CFO</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>
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			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">MONTAGE CAPITAL II, L.P.</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">By: /s/ Michel J. Rose</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Name: Michael J. Rose</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</p>

			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Title: Managing Director</p>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>EXHIBIT A</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>COMPLIANCE CERTIFICATE</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:72pt;margin-right:0pt;margin-top:0pt;text-align:justify;text-indent:-72pt;">&nbsp;</p>

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			<td style="width:72pt;vertical-align:top;">
			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;"><b>BORROWER:</b></p>
			</td>
			<td style="vertical-align:top;">
			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;"><b>Bridgeline Digital, Inc.</b></p>
			</td>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

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			<td nowrap="true" style="width: 23%; vertical-align: top; padding: 0px;">
			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">Note: Please send all required reporting to:</p>
			</td>
			<td style="vertical-align: top; width: 77%;">
			<p style="font-family:'Times New Roman', Times, serif;margin-right:0pt;margin-top:0pt;text-align:justify;margin-bottom:0pt;font-size:10pt;">&nbsp;Montage Capital II, L.P.</p>
			</td>
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			<td style="width: 23%; vertical-align: top;">&nbsp;</td>
			<td style="vertical-align: top; width: 77%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&nbsp;900 East Hamilton Avenue, Suite 100</p>

			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&nbsp;Campbell, CA 95008</p>

			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&nbsp;Fax: (408) 659-2318</p>

			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&nbsp;Email: mrose @montagecapital.com</p>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:180pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">The undersigned authorized officer of Bridgeline Digital, Inc. hereby certifies that in accordance with the terms and conditions of the Loan and Security Agreement between Borrower and Lender (the &ldquo;Agreement&rdquo;).</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">Borrower is in complete compliance for the period ending _______________ with all required covenants, except as noted below; and all representations and warranties of Borrower stated in the Agreement are true and correct in all material respects as of the date hereof.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">Attached herewith are the required documents supporting the above certification. The authorized officer further certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes.</p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Please indicate compliance status by circling Yes/No under &ldquo;Complies&rdquo; column.</b></p>

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			<td style="vertical-align:top;width:46%;">&nbsp;</td>
			<td colspan="4" style="vertical-align: top; width: 2020%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 5%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 22%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;"><font style="text-transform:uppercase;"><u>Reporting Covenant</u></font></td>
			<td style="vertical-align: top; width: 20%; padding-left: 27pt;"><font style="text-transform:uppercase;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<u>Required</u></font></td>
			<td colspan="2" style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="5" rowspan="1" style="vertical-align: top; width: 552%; text-align: right;"><font style="text-transform:uppercase;"><u>Complies</u></font></td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">Monthly financial statements</td>
			<td style="vertical-align: top; width: 20%; padding-left: 27pt;">Monthly within 30 days</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 5%; text-align: right;">Yes&nbsp; &nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 2%; text-align: right;">No</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
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			<td style="vertical-align:top;width:46%;">A/R &amp; A/P Agings</td>
			<td style="vertical-align: top; width: 20%; padding-left: 27pt;">Monthly within 30 days</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 5%; text-align: right;">Yes&nbsp; &nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 2%; text-align: right;">No</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">Deferred revenue schedule</td>
			<td style="vertical-align: top; width: 20%; padding-left: 27pt;">Monthly within 30 days</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 5%; text-align: right;">Yes&nbsp; &nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 2%; text-align: right;">No</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
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			<td style="vertical-align:top;width:46%;">Compliance Certificate</td>
			<td style="vertical-align: top; width: 20%; padding-left: 27pt;">Monthly within 30 days</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 5%; text-align: right;">Yes&nbsp; &nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 2%; text-align: right;">No</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">Annual financial statements (CPA audited)</td>
			<td style="vertical-align: top; width: 20%; padding-left: 27pt;">FYE within 120 days</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 5%; text-align: right;">Yes&nbsp; &nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 2%; text-align: right;">No</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">Annual financial projections for upcoming year</td>
			<td style="vertical-align: top; width: 20%; padding-left: 27pt;">Within 30 days of FYE</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 5%; text-align: right;">Yes&nbsp; &nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 2%; text-align: right;">No</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">Tax returns with schedules</td>
			<td style="vertical-align: top; width: 20%; padding-left: 27pt;">Within 15 days of filing</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 5%; text-align: right;">Yes&nbsp; &nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 2%; text-align: right;">No</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">10K and 10Q</td>
			<td style="vertical-align: top; width: 20%; padding-left: 27pt;">Within 5 days of filing</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 5%; text-align: right;">Yes&nbsp; &nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 2%; text-align: right;">No</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">Reports &amp; certificates provided to Senior Lender</td>
			<td colspan="3" rowspan="1" style="vertical-align: top; width: 20%; padding-left: 27pt;">Concurrently upon delivery to Senior Lender</td>
			<td colspan="3" style="vertical-align: top; width: 5%; text-align: right;">Yes&nbsp; &nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 2%; text-align: right;">No</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">&nbsp;</td>
			<td style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">&nbsp;</td>
			<td colspan="3" style="vertical-align: top; width: 5%;">&nbsp;</td>
			<td colspan="2" style="vertical-align: top; width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;"><u>FINANCIAL COVENANTS</u></td>
			<td style="vertical-align: top; width: 20%; text-align: center;"><u>REQUIRED</u></td>
			<td colspan="2" style="vertical-align: top; width: 20%; text-align: center;"><u>ACTUAL</u></td>
			<td colspan="5" rowspan="1" style="vertical-align: top; width: 552%; text-align: right;"><u>COMPLIES</u></td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Asset Coverage Ratio (monthly)</p>
			</td>
			<td style="vertical-align: top; width: 20%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">1.40 : 1.00</p>
			</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">_______: 1.00</p>
			</td>
			<td colspan="3" style="vertical-align: top; width: 5%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">Yes&nbsp; &nbsp;</p>
			</td>
			<td colspan="2" style="vertical-align: top; width: 2%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">No</p>
			</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Adjusted EBITDA for quarter ending 9/30/18</p>
			</td>
			<td style="vertical-align: top; width: 20%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">($424,000)</p>
			</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">$__________</p>
			</td>
			<td colspan="3" style="vertical-align: top; width: 5%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">Yes&nbsp; &nbsp;</p>
			</td>
			<td colspan="2" style="vertical-align: top; width: 2%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">No</p>
			</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Adjusted EBITDA for quarter ending 12/31/18</p>
			</td>
			<td style="vertical-align: top; width: 20%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">($415,000)</p>
			</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">$__________</p>
			</td>
			<td colspan="3" style="vertical-align: top; width: 5%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">Yes&nbsp; &nbsp;</p>
			</td>
			<td colspan="2" style="vertical-align: top; width: 2%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">No</p>
			</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Adjusted EBITDA for quarter ending 3/31/19 and beyond</p>
			</td>
			<td style="vertical-align: top; width: 20%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">($415,000)</p>
			</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">$__________</p>
			</td>
			<td colspan="3" style="vertical-align: top; width: 5%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">Yes&nbsp; &nbsp;</p>
			</td>
			<td colspan="2" style="vertical-align: top; width: 2%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">No</p>
			</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:46%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">Minimum unrestricted cash subject to control agmt</p>
			</td>
			<td style="vertical-align: top; width: 20%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">$250,000 *<br>
			(* increasing to $500,000 on and after repayment of Subordinated Debt incurred in Sept 2018)</p>
			</td>
			<td colspan="2" style="vertical-align: top; width: 20%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">$___________</p>
			</td>
			<td colspan="3" style="vertical-align: top; width: 5%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">Yes&nbsp; &nbsp;</p>
			</td>
			<td colspan="2" style="vertical-align: top; width: 2%;">
			<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">No</p>
			</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>
		<tr>
			<td colspan="9" style="vertical-align: top; width: 4.62021e+08%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
			<td style="width: 2%;">&nbsp;</td>
		</tr>

</table>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:36pt;">Please attach any comments as additional pages.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" style="margin-left:54%;width:46%;text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt;">

		<tr>
			<td style="vertical-align:top;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Bridgeline Digital, Inc. </b></p>
			</td>
		</tr>
		<tr>
			<td style="vertical-align:top;width:100%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;border-bottom:solid 1px #000000;;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">&nbsp;</p>
			</td>
		</tr>
		<tr>
			<td style="vertical-align:top;border-bottom: 1px #000000;;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:0pt;">Signature</p>
			</td>
		</tr>
		<tr>
			<td style="vertical-align:top;border-bottom:solid 1px #000000;;width:100%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;border-bottom: 1px #000000;;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:0pt;">Name</p>
			</td>
		</tr>
		<tr>
			<td style="vertical-align:top;border-bottom:solid 1px #000000;;width:100%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;border-bottom: 1px #000000;;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:0pt;">Title</p>
			</td>
		</tr>
		<tr>
			<td style="vertical-align:top;border-bottom:solid 1px #000000;;width:100%;">&nbsp;</td>
		</tr>
		<tr>
			<td style="vertical-align:top;border-bottom: 1px #000000;;width:100%;">
			<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:0pt;">Date</p>
			</td>
		</tr>

</table>

<p style="font-size:1pt;margin:0pt;text-align:left;"><b>&nbsp;</b></p>
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</SEC-DOCUMENT>
