Document:

EXHIBIT 10.21
                                                                   -------------

                             SUBSCRIPTION AGREEMENT

                                             Name of Subscriber ________________

Bridgeline Software, Inc.
10 Sixth Road
Woburn, MA 01801

Ladies and Gentlemen:

         1. SUBSCRIPTION. I (sometimes referred to herein as the "Investor")
hereby subscribe for and agree to purchase ___ Unit(s) (as defined below) of
Bridgeline Software, Inc., a Delaware corporation (the "Company"), on the terms
and conditions described herein and in the Private Placement Memorandum of the
Company and the Appendixes thereto (collectively, the "Offering Documents"),
each dated April ___, 2006, together with all supplements, if any, relating to
this offering. Terms not defined herein are as defined in the Offering
Documents. The purchase price per Unit is $100,000. The Minimum Offering is
$1,100,000, or 11 Units/the Maximum Offering is $2,300,000, or 23 Units. The
Units are being offered on behalf of the Company by registered broker-dealer
Joseph Gunnar & Co., LLC (the "Placement Agent"). The Company and the Placement
Agent have the option to increase the offering by up to an additional 5 Units,
or $500,000, on a "best efforts" basis. Affiliates of the Placement Agent and of
the Company may purchase securities in this Offering, and any such purchases
will be considered part of the Minimum Offering amount sold.

         THE AGGREGATE AMOUNT SUBSCRIBED FOR HEREBY IS $___________.

         THE UNDERSIGNED WILL PURCHASE THE FOREGOING UNITS FROM THE COMPANY ON
OR BEFORE THE TERMINATION OF THE OFFERING PERIOD (AS THE SAME MAY BE EXTENDED BY
THE COMPANY AND THE PLACEMENT AGENTS); IF AND ONLY IF THE COMPANY NOTIFIES THE
UNDERSIGNED THAT SUBSCRIPTION AGGREGATING $_______ HAVE BEEN RECEIVED AND
ACCEPTED BY THE COMPANY, AND REPRESENT GOOD FUNDS IN THE COMPANY'S ESCROW
ACCOUNT.

         2. DESCRIPTION OF UNITS; LOCK-UP. Each Unit consists of (i) an interest
bearing senior secured note in principal amount of $100,000 (the "Note"), and
(ii) a five-year warrant to purchase 10,000 shares of Company common stock, par
value $.001 per share ("Common Stock") at an exercise price of $.001 per share
(the "Warrant") (collectively, the Note and Warrant are referred to as a
"Unit"). The shares issuable upon exercise of the Warrant are eligible for
certain registration rights as set forth in the Warrant; provided, however, that
the Investor hereby agrees to certain six-month post-IPO lock-ups (as set forth
in the Offering Documents) pursuant to the underwriter's customary lock-up
agreement.

         3. PURCHASE; REGISTRATION RIGHTS.
<PAGE>

                  (a) I hereby tender to the Company cash or a check or wire
transfer (information to be provided to me on my request) made payable to the
order of U.S. Bank, AS ESCROW AGENT, as escrow agent for the Company in the
amount indicated above, an executed copy of this Subscription Agreement and an
executed copy of my Purchaser Investor Questionnaire. The wire information is:

         U.S. Bank
         ABA No.:  091000022
         Corporate Trust Services
         Acct. No.:  173103321050
         Attn:  Betty Hammer
         Ref:  Bridgeline Subscription Escrow, Acct No. 793506000

                  (b) The Offering shall terminate on the earliest of: (a) the
sale of the Maximum Offering, or (b) May 31, 2006, unless extended without
notice to the Investors by the Company and the Placement Agent for no more than
two (2) thirty (30) day periods (the "Termination Date"). Prior to the
Termination Date, payments delivered herewith will be held in an escrow account,
but may be immediately released to the Company upon acceptance of the
subscription. Upon the earlier of a closing for my subscription or completion of
the offering, I will be notified promptly by the Company as to whether my
subscription has been accepted by the Company.

                  (c) The Warrant and Warrant Shares shall have the Registration
Rights set forth in Section (j) of the Warrant.

         4. ACCEPTANCE OR REJECTION OF SUBSCRIPTION.

                  (a) I understand and agree that the Company reserves the right
to reject this subscription for the Units, in whole or in part, for any reason
and at any time prior to the Closing, notwithstanding prior receipt by me of
notice of acceptance of my subscription.

                  (b) In the event of the rejection of this subscription, my
subscription payment will be promptly returned to me without interest or
deduction and this Subscription Agreement shall have no force or effect. In the
event my subscription is accepted and the offering is completed, the funds
specified above shall be released to the Company.

         5. CLOSING. The closing ("Closing") of this offering may occur any time
and from time to time after the Company has received and accepted subscriptions
before the Termination Date. The Units subscribed for herein shall not be deemed
issued to or owned by me until one copy of this Subscription Agreement has been
executed by me and countersigned by the Company and the Closing with respect to
such Units has occurred.

         6. DISCLOSURE. Because this offering is limited to accredited investors
as defined in Section 2(15) of the Act, and Rule 501 promulgated thereunder, in
reliance upon the exemption contained in Section 4(2) of the Act and applicable
state securities laws, the Units are being sold without registration under the
Act. I acknowledge receipt of the Offering Documents and all

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<PAGE>

related documents and represent that I have carefully reviewed and understand
the Offering Documents and its exhibits. I have received all information and
materials regarding the Company that I have requested.

I fully understand that the Company has a limited financial and operating
history and that the Units are speculative investments which involve a high
degree of risk of the loss of my entire investment. I fully understand the
nature of the risks involved in purchasing the Units and I am qualified by my
knowledge and experience to evaluate investments of this type. I have carefully
considered the potential risks relating to the Company and purchase of its Units
and have, in particular, reviewed each of the risks set forth in the Offering
Documents. Both my advisors and I have had the opportunity to ask questions of
and receive answers from representatives of the Company or persons acting on its
behalf concerning the Company and the terms and conditions of a proposed
investment in the Company and my advisors and I have also had the opportunity to
obtain additional information necessary to verify the accuracy of information
furnished about the Company. Accordingly, I have independently evaluated the
risks of purchasing the Units.

         7. INVESTOR REPRESENTATIONS AND WARRANTIES. I acknowledge, represent
and warrant to, and agree with, the Company as follows:

                  (a) I am aware that my investment involves a high degree of
risk as disclosed in the Offering Documents and have read carefully the Offering
Documents.

                  (b) I acknowledge and am aware that there is no assurance as
to the future performance of the Company.

                  (c) I acknowledge that there may be certain adverse tax
consequences to me in connection with my purchase of Units, and the Company has
advised me to seek the advice of experts in such areas prior to making this
investment.

                  (d) I am purchasing the Units for my own account for
investment purposes and not with a view to or for sale in connection with the
distribution of the Units, the Notes, the Warrants, or the shares of Common
Stock issuable upon exercise of the Warrants, nor with any present intention of
selling or otherwise disposing of all or any part of the foregoing securities. I
agree that I must bear the entire economic risk of my investment for an
indefinite period of time because, among other reasons, the Units have not been
registered under the Act or under the securities laws of any state and,
therefore, cannot be resold, pledged, assigned or otherwise disposed of unless
they are subsequently registered under the Act and under applicable securities
laws of certain states or an exemption from such registration is available.
Furthermore, I hereby acknowledge and agree that I will not sell, transfer,
pledge, encumber, give or otherwise dispose of, either publicly or privately,
the Units, the Notes, or the shares of Common Stock issuable upon exercise of
the Warrants. I hereby authorize the Company to place a legend denoting the
restrictions on the Units that may be issued to me, as well as the Notes,
Warrants, and shares of Common Stock issuable upon exercise of the Warrants.

                  (e) Except as described in my Purchaser Investor
Questionnaire, I am not a member of the National Association of Securities
Dealers, Inc. ("NASD"); I am not and have

                                        3
<PAGE>

not, for a period of twelve (12) months prior to the date of this Subscription
Agreement, been affiliated or associated with any company, firm, or other entity
which is a member of the NASD; and I do not own any stock or other interest in
any member of the NASD (other than interests acquired in open market purchases).

                  (f) I recognize that the Units, as an investment, involve a
high degree of risk including, but not limited to, the risk of economic losses
from operations of the Company and the total loss of my investment. I believe
that the investment in the Units is suitable for me based upon my investment
objectives and financial needs, and I have adequate means for providing for my
current financial needs and contingencies and have no need for liquidity with
respect to my investment in the Company.

                  (g) I have been given access to full and complete information
regarding the Company and have utilized such access to my satisfaction for the
purpose of obtaining information in addition to, or verifying information
included in, the Offering Documents and related documents, and I have either met
with or been given reasonable opportunity to meet with officers of the Company
for the purpose of asking questions of, and receiving answers from, such
officers concerning the terms and conditions of the offering of the Units and
the business and operations of the Company and to obtain any additional
information, to the extent reasonably available.

                  (h) I have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of an
investment in the Units and have obtained, in my judgment, sufficient
information from the Company to evaluate the merits and risks of an investment
in the Company. I have not utilized any person as my purchaser representative as
defined in Regulation D under the Act in connection with evaluating such merits
and risks.

                  (i) I have relied solely upon my own investigation in making a
decision to invest in the Company.

                  (j) I have received no representation or warranty from the
Company or any of its officers, directors, employees or agents in respect of my
investment in the Company and I have received no information (written or
otherwise) from them relating to the Company or its business other than as set
forth in the Offering Documents. I am not participating in the offer as a result
of or subsequent to: (i) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast
over television or radio or (ii) any seminar or meeting whose attendees have
been invited by any general solicitation or general advertising.

                  (k) I have had full opportunity to ask questions and to
receive satisfactory answers concerning the offering and other matters
pertaining to my investment and all such questions have been answered to my full
satisfaction.

                  (l) I have been provided an opportunity to obtain any
additional information concerning the offering and the Company and all other
information to the extent the Company possesses such information or can acquire
it without unreasonable effort or expense.

                                        4
<PAGE>

                  (m) I am an "accredited investor" as defined in Section 2(15)
of the Act and in Rule 501 promulgated thereunder. I can bear the entire
economic risk of the investment in the Units for an indefinite period of time
and I am knowledgeable about and experienced in investments in the equity
securities of non-publicly traded companies, including early stage companies. I
am acquiring the Units for my own account for investment purposes only and not
with a view to the resale or distribution of such securities within the meaning
of the Act. I am not acting as an underwriter or a conduit for sale to the
public or to others of unregistered securities, directly or indirectly, on
behalf of the Company or any person with respect to such securities.

                  (n) I understand that (i) the Units and the underlying
securities have not been registered under the Act, or the securities laws of
certain states in reliance on specific exemptions from registration, (ii) no
securities administrator of any state or the federal government has recommended
or endorsed this offering or made any finding or determination relating to the
fairness of an investment in the Company and (iii) the Company is relying on my
representations and agreements for the purpose of determining whether this
transaction meets the requirements of the exemptions afforded by the Act and
certain state securities laws.

                  (o) I understand that (i) since neither the offer nor sale of
the Units has been registered under the Act or the securities laws of any state,
the Units may not be sold, assigned, pledged or otherwise disposed of unless
they are so registered or an exemption from such registration is available, and
(ii) it is not anticipated that there will be any market for the resale of the
Units.

                  (p) I have been urged to seek independent advice from my
professional advisors relating to the suitability of an investment in the
Company in view of my overall financial needs and with respect to the legal and
tax implications of such investment.

                  (q) If the Investor is a corporation, company, trust, employee
benefit plan, individual retirement account, Keogh Plan, or other tax-exempt
entity, it is authorized and qualified to become an Investor in the Company and
the person signing this Subscription Agreement on behalf of such entity has been
duly authorized by such entity to do so.

                  (r) The information contained in my Purchaser Investor
Questionnaire, as well as any information which I have furnished to the Company
with respect to my financial position and business experience, is correct and
complete as of the date of this Subscription Agreement and, if there should be
any material change in such information prior to the Closing of the offering, I
will furnish such revised or corrected information to the Company.

         I hereby acknowledge and am aware that except for any rescission rights
that may be provided under applicable laws, I am not entitled to cancel,
terminate or revoke this subscription, and any agreements made in connection
herewith shall survive my death or disability.

         8. INDEMNIFICATION. I hereby agree to indemnify and hold harmless the
Company and its officers, directors, stockholders, employees, agents, and
counsel against any and all

                                        5
<PAGE>
losses, claims, demands, liabilities, and expenses (including reasonable legal
or other expenses, including reasonable attorneys' fees) incurred by each such
person in connection with defending or investigating any such claims or
liabilities, whether or not resulting in any liability to such person, to which
any such indemnified party may become subject under the Act, under any other
statute, at common law or otherwise, insofar as such losses, claims, demands,
liabilities and expenses (a) arise out of or are based upon any untrue statement
or alleged untrue statement of a material fact made by me and contained in this
Subscription Agreement or my Purchaser Investor Questionnaire, or (b) arise out
of or are based upon any breach by me of any representation, warranty, or
agreement made by me contained herein or therein.

         9. SEVERABILITY. In the event any parts of this Subscription Agreement
are found to be void, the remaining provisions of this Subscription Agreement
shall nevertheless be binding with the same effect as though the void parts were
deleted.

         10. CHOICE OF LAW AND JURISDICTION. This Subscription Agreement shall
be governed by and construed in all respects under the laws of the State of New
York, without reference to its conflict of laws rules or principles. Any suit,
action, proceeding or litigation arising out of or relating to this Agreement
shall be brought and prosecuted only in federal and state courts in the City,
County and State of New York. The parties hereby irrevocably and unconditionally
consent to the jurisdiction of each such court or courts located within the
State of New York and to service of process by registered or certified mail,
return receipt requested, or by any other manner provided by applicable law, and
hereby irrevocably and unconditionally waive any right to claim that any suit,
action, proceeding or litigation so commenced has been commenced in an
inconvenient forum.

         11. COUNTERPARTS. This Subscription Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument. The execution of this
Subscription Agreement may be by actual or facsimile signature.

         12. BENEFIT. This Subscription Agreement shall be binding upon and
inure to the benefit of the parties hereto.

         13. NOTICES AND ADDRESSES. All notices, offers, acceptance and any
other acts under this Subscription Agreement (except payment) shall be in
writing, and shall be sufficiently given if delivered to the addresses in
person, by Federal Express or similar courier delivery or by facsimile delivery,
as follows:

                  Investor:           At the address designated on the signature
                                      page of this Subscription Agreement.

                  The Company:        Bridgeline Software, Inc.
                                      10 Sixth Road
                                      Woburn, MA 01801
                                      Attn: Thomas Massie, President and CEO
                                      Fax: (781) 376-5033

                                        6
<PAGE>

                  With a copy to:     Morse, Barnes-Brown & Pendleton, P.C.
                                      Reservoir Place, 1601 Trapelo Road
                                      Waltham, MA 02451
                                      Fax: (781) 622-5933
                                      Attention: Joseph C. Marrow, Esq.

         or to such other address as any of them, by notice to the others may
designate from time to time. The transmission confirmation receipt from the
sender's facsimile machine shall be conclusive evidence of successful facsimile
delivery. Time shall be counted to, or from, as the case may be, the delivery in
person or by mailing.

         14. ENTIRE AGREEMENT. This Subscription Agreement constitutes the
entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior oral and written agreements between the parties hereto
with respect to the subject matter hereof. This Subscription Agreement may not
be changed, waived, discharged, or terminated orally but, rather, only by a
statement in writing signed by the party or parties against which enforcement or
the change, waiver, discharge or termination is sought.

         15. SECTION HEADINGS. Section headings herein have been inserted for
reference only and shall not be deemed to limit or otherwise affect, in any
matter, or be deemed to interpret in whole or in part, any of the terms or
provisions of this Subscription Agreement.

         16. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS. The
representations, warranties and agreements contained herein shall survive the
delivery of, and the payment for, the Units.

         17. ACCEPTANCE OF SUBSCRIPTION. The Company may accept this
Subscription Agreement at any time for all or any portion of the Units
subscribed for by executing a copy hereof as provided and notifying me within a
reasonable time thereafter.

RESIDENTS OF ALL STATES: THE UNITS OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM
THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE UNITS ARE SUBJECT
TO REGISTRATIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR
RESOLD EXCEPT AS PERMITTED UNDER SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION
OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO
BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
THE UNITS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR
HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS
OFFERING OR THE ACCURACY

                                        7
<PAGE>

OR ADEQUACY OF THE OFFERING DOCUMENTS. ANY REPRESENTATION TO THE CONTRARY IS
UNLAWFUL.

                                        8
<PAGE>

Manner in Which Title is to be Held. (check one)

___ Individual Ownership
___ Community Property
___ Joint Tenant with Right of Survivorship (both parties must sign)
___ Partnership
___ Tenants in common
___ Corporation
___ Trust
___ IRA or Keough
___ Other (please indicate)

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

INDIVIDUAL INVESTORS                       ENTITY INVESTORS
                                           Name of entity, if any
---------------------------------
Signature (Individual)
                                           By:
                                               --------------------------------
                                                *Signature
                                           Its
---------------------------------               --------------------------------
Signature (Joint)                               Title
(all record holders must sign)                        --------------------------

---------------------------------          -------------------------------------
Name(s) Typed or Printed                   Name Typed or Printed

Address to Which Correspondence            Address to Which Correspondence
Should be Directed                         Should be Directed

---------------------------------          -------------------------------------

---------------------------------          -------------------------------------
City, State and Zip Code                   City, State and Zip Code

---------------------------------          -------------------------------------
Tax Identification or                      Tax Identification or
Social Security Number                     Social Security Number

          * IF UNITS ARE BEING SUBSCRIBED FOR BY ANY ENTITY, THE CERTIFICATE OF
          SIGNATORY ON THE NEXT PAGE MUST ALSO BE COMPLETED

The foregoing subscription is accepted and the Company hereby agrees to be bound
by its terms.

                                           BRIDGELINE SOFTWARE, INC.

Dated:                                     By:
       --------------------------              ---------------------------------
                                               Thomas Massie, President and CEO

<PAGE>

                            CERTIFICATE OF SIGNATORY

        (To be completed if Units are being subscribed for by an entity)

         I, _______________________________, the _______________________________
                 (NAME OF SIGNATORY)                         (TITLE)

                  of______________________________ "Entity"),               a

                  ________________________________________
                               (NAME OF ENTITY)

                  ________________________________________
                               (TYPE OF ENTITY)

hereby certify that I am empowered and duly authorized by the Entity to execute
the Subscription Agreement and to purchase the Units, and certify further that
the Subscription Agreement has been duly and validly executed on behalf of the
Entity and constitutes a legal and binding obligation of the Entity.

         IN WITNESS WHEREOF, I have set my hand this       day of        , 2006.

                                                       -------------------------
                                                              (SIGNATURE)

<PAGE>

                                   SCHEDULE A

Anderson, Neil T.
Auersperg, Paul
Balfour Associates LP
Burg Family Trust
Callahan, Brian
Coldrick, William
Davenport, Edward C.
Davis, James
Dupree, Thomas
Fortune Footwear
Freed, Albert
Herbert Wrabel Living Trust
High Capital Funding, LLC
Jia, Charles
Kotler, Elia
Landy, John
Lefebvre, Scott & Suzanne
Lowrance, Larry
Massie, Thomas & Theresa
McCoy, Robert S.
Panagolpolous, John & Betty
Rizos, George
Troutman, John
Baker, Christopher P.
Davis, James
Dupree, Thomas
Heffernan, Ronald
Kersch, Mitchell & Allison
McLemore, Robert
Mead, Ian D.
Seeger, Robert & KaraEXHIBIT 10.22
                                                                   -------------

THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE
TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "ACT") SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii)
RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS NOT REQUIRED IN
CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE
STATE SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY NOTE OR ANY
SECURITIES ISSUED IN EXCHANGE OR AS REPAYMENT FOR THIS NOTE.

THE INDEBTEDNESS EVIDENCED BY THIS NOTE IS SUBORDINATED AS SET FORTH HEREIN.

                            BRIDGELINE SOFTWARE, INC.

                             SECURED PROMISSORY NOTE

$_____                                                           _________, 2006

                  FOR VALUE RECEIVED, Bridgeline Software, Inc., a Delaware
corporation (the "Company") with its principal executive office at 10 Sixth
Road, Woburn, Massachusetts 01801, promises to pay to the order of ______, at
_____ (the "Payee" or the "Holder") or registered assigns on the earlier of
____, 2007 and the date of a closing of a firm underwriting initial public
offering of securities pursuant to a registration statement filed by the Company
under the Act ("IPO") of the Company's common stock, par value $0.001 per share
(the "Common Stock") (the "Maturity Date") the principal amount of ______
Dollars ($______) (the "Principal Amount"), in such coin or currency of the
United States of America as at the time of payment shall be legal tender for the
payment of public and private debts. Interest on this Note shall accrue on the
Principal Amount outstanding from time to time at a rate per annum computed in
accordance with Section 3 hereof. Interest shall accrue at the rate of 10% per
annum from the date hereof until ________, 2006 [such date to be six months from
the date of the closing of the Minimum Offering (as defined in the Offering,
which definition is set forth below)] and at the rate of 12% per annum from
___________, 2006 [such date to be six months from the date of the closing of
the Minimum Offering (as defined in the Offering, which definition is set forth
below)] to the Maturity Date. Accrued interest will be due and payable quarterly
commencing June 30, 2006. If the Maturity Date coincides with the IPO, 100% of
the principal amount of the Notes hereof shall be paid off and discharged.

THE NOTES WILL BE SECURED BY SUBSTANTIALLY ALL THE ASSETS OF THE COMPANY
PURSUANT TO A CERTAIN SECURITY AGREEMENT DATED AS OF THE DATE HEREOF, BY AND
BETWEEN THE COMPANY, AS DEBTOR, AND THE HOLDER, AS SECURED PARTY, PROVIDED
HOWEVER, THAT, IN ACCORDANCE WITH THE SECURITY AGREEMENT, THE NOTES ARE
SUBORDINATED IN PAYMENT TO THE OBLIGATIONS OWING TO SAND HILL FINANCE, LLC UNDER
A CERTAIN FINANCING AGREEMENT (THE "SENIOR AGREEMENT") BETWEEN THE COMPANY AND
SAND HILL FINANCE, LLC, DATED AS OF MARCH 29, 2005, AS AMENDED, SO LONG AS ANY
OBLIGATIONS ARE OUTSTANDING UNDER THE SENIOR AGREEMENT.

<PAGE>

         Copies of all payments shall be sent to Joseph Gunnar & Co., LLC, 30
Broad Street, New York, NY 10004, Attn: Stephan A. Stein, via facsimile (212)
440-9668 (Joseph Gunnar & Co., LLC is hereinafter referred to as the "Placement
Agent").

         Any payment by the Company pursuant to this Note shall be made without
set-off or counterclaim and in immediately available funds.

         The Company (i) waives presentment, demand, protest or notice of any
kind in connection with this Note and (ii) agrees, in the event of an Event of
Default (as defined in Section 5 below), to pay to the holder of this Note, on
demand, all costs and expenses (including reasonable legal fees) incurred in
connection with the enforcement and collection of this Note.

         In consideration for the loan represented by this Note, the Company
shall issue to the Payee, simultaneously herewith, a warrant to purchase _____
shares of Common Stock, which shares of Common Stock upon proper exercise of the
warrant shall be duly authorized, validly issued, fully paid and non-assessable.

         1. [Reserved.]

         2. Secured Loan. The obligations of the Company hereunder and under
similar notes aggregating the principal amount of up to $_____, with an
over-allotment option of $______, are secured by a General Security Agreement
dated as of ______, 2006 (the "Security Agreement"). This Note is part of a Unit
issue (the "Offering") conducted by the Company pursuant to the Confidential
Private Placement Memorandum dated _______, 2006 (including all Appendices
thereto, the "Offering Documents").

         3. Computation of Interest.

                  A. Base Interest Rate. Subject to subsections 3B, 3C and 5C
below, the outstanding Principal Amount shall bear interest at the rate set
forth above.

                  B. Penalty Interest. In the event the Note is not repaid on
the Maturity Date, the rate of interest applicable to the unpaid Principal
Amount shall be increased to fifteen percent (15%) per annum from and after the
Maturity Date provided, that in no event shall the interest rate exceed the
Maximum Rate provided in Section 3C below.

                  C. Maximum Rate. In the event that it is determined that,
under the laws relating to usury applicable to the Company or the indebtedness
evidenced by this Note ("Applicable Usury Laws"), the interest charges and fees
payable by the Company in connection herewith or in connection with any other
document or instrument executed and delivered in connection herewith cause the
effective interest rate applicable to the indebtedness evidenced by this Note to
exceed the maximum rate allowed by law (the "Maximum Rate"), then such interest
shall be recalculated for the period in question and any excess over the Maximum
Rate paid with respect to such period shall be credited, without further
agreement or notice, to the Principal Amount outstanding hereunder to reduce
said balance by such amount with the same force and effect as though the Company
had specifically designated such extra sums to be so applied to principal and
the Payee had agreed to accept such extra payment(s) as a premium-free
prepayment. All such deemed prepayments shall be applied to the principal
balance payable at maturity. In no

                                        2
<PAGE>

event shall any agreed-to or actual exaction as consideration for this Note
exceed the limits imposed or provided by Applicable Usury Laws in the
jurisdiction in which the Company is resident applicable to the use or detention
of money or to forbearance in seeking its collection in the jurisdiction in
which the Company is resident.

         4.Covenants of Company

                  A. Affirmative Covenants. The Company (for this purpose to
include all subsidiaries of the Company) covenants and agrees that, so long as
this Note shall be outstanding, it will perform the obligations set forth in
this Section 4A:

                           (i) Taxes and Levies. The Company will promptly pay
and discharge all taxes, assessments, and governmental charges or levies imposed
upon the Company or upon its income and profits, or upon any of its property,
before the same shall become delinquent or upon the closing of the offering in
which this Note is issued, as well as all claims for labor, materials and
supplies which, if unpaid, might become a lien or charge upon such properties or
any part thereof; provided, however, that the Company shall not be required to
pay and discharge any such tax, assessment, charge, levy or claim so long as the
validity thereof shall be contested in good faith by appropriate proceedings and
the Company shall set aside on its books adequate reserves in accordance with
generally accepted accounting principles ("GAAP") with respect to any such tax,
assessment, charge, levy or claim so contested;

                           (ii) Maintenance of Existence. The Company will do or
cause to be done all things reasonably necessary to preserve and keep in full
force and effect its corporate existence, rights and franchises and comply with
all laws applicable to the Company, except where the failure to comply would not
have a material adverse effect on the Company;

                           (iii) Maintenance of Property. The Company will at
all times maintain, preserve, protect and keep its property used or useful in
the conduct of its business in good repair, working order and condition, and
from time to time make all needful and proper repairs, renewals, replacements
and improvements thereto as shall be reasonably required in the conduct of its
business;

                           (iv) Insurance. The Company will, to the extent
necessary for the operation of its business, keep adequately insured by
financially sound reputable insurers, all property of a character usually
insured by similar corporations and carry such other insurance as is usually
carried by similar corporations;

                           (v) Books and Records. The Company will at all times
keep true and correct books, records and accounts reflecting all of its business
affairs and transactions in accordance with GAAP. Such books and records shall
be open at reasonable times and upon reasonable notice to the inspection of the
Payee or its agents;

                           (vi) Financial Statements. The Company will provide
the Placement Agent with unaudited quarterly financial statements within 45 days
after the end of each fiscal quarter commencing immediately after the Offering;

                                        3
<PAGE>

                           (vii) Notice of Certain Events. The Company will give
prompt written notice (with a description in reasonable detail) to the Payee of:

                                    (a) the occurrence of any Event of Default
or any event which, with the giving of notice or the lapse of time, would
constitute an Event of Default; and

                                    (b) the delivery of any notice effecting the
acceleration of any indebtedness in excess of $50,000; and

                           (viii) The Company will take all reasonable steps,
from and after the date hereof, to actively pursue effectiveness and closing of
the IPO, including obtaining all necessary audited financial statements,
preparing and filing a registration statement with the Securities and Exchange
Commission and processing the same to effectiveness, and compliance with Federal
and State law; provided that the Company can provide no assurance that it will
be able to close an IPO prior to the Maturity Date, if at all.

                  B. Negative Covenants. The Company (for this purpose to
include all subsidiaries of the Company) covenants and agrees that, so long as
this Note shall be outstanding, it will perform the obligations set forth in
this Section 4B (unless waived by or on behalf of the Holder):

                           (i) Liquidation, Dissolution, etc. The Company will
not liquidate or dissolve, consolidate with, or merge into or with, any other
corporation or other entity, except that any wholly-owned subsidiary may merge
with another wholly-owned subsidiary or with the Company (so long as the Company
is the surviving corporation and no Event of Default shall occur as a result
thereof), and except as provided in Section 4B(ix);

                           (ii) Sales of Assets. The Company will not sell,
transfer, lease or otherwise dispose of any of its properties or assets to any
person or entity, provided that this clause (ii) shall not restrict any
disposition made in the ordinary course of business and consisting of

                           (a) capital goods which are obsolete or have no
remaining useful life; or

                           (b) finished goods inventories;

                           (iii) Redemptions. The Company will not redeem or
repurchase any outstanding equity securities of the Company, except for (a)
repurchases of unvested or restricted shares of Common Stock at cost from
employees, consultants or members of the Board of Directors pursuant to
repurchase options of the Company (1) currently outstanding or (2) hereafter
entered into pursuant to a stock option plan or restricted stock plan approved
by the Company's Board of Directors;

                           (iv) Indebtedness. The Company will hereafter not
create, incur, assume or suffer to exist, contingently or otherwise, any
indebtedness for borrowed money except that outstanding on the date hereof and
indebtedness which have the prior approval of the Holder or its representative;

                                        4
<PAGE>

                           (v) Negative Pledge. Except as set forth in Schedule
4B(v) hereto, the Company will not hereafter create, incur, assume or suffer to
exist any mortgage, pledge, hypothecation, assignment, security interest,
encumbrance, lien (statutory or other), preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement and any
financing lease) (each, a "Lien") upon any of its property, revenues or assets,
whether now owned or hereafter acquired except that, subject to the approval of
the Holders, the Company may grant a senior Lien in its accounts receivable and
inventory to a commercial bank that in the future may agree to provide the
Company financing.

                           (vi) Investments. Except as set forth in the Offering
Documents, the Company will not hereafter purchase, own, invest in or otherwise
acquire, directly or indirectly, any stock or other securities or make or permit
to exist any investment or capital contribution or acquire any interest
whatsoever in any other person or entity or permit to exist any loans or
advances for such purposes except for investments in direct obligations of the
United States of America or any agency thereof, obligations guaranteed by the
United States of America and certificates of deposit or other obligations of any
bank or trust company organized under the laws of the United States or any state
thereof and having capital and surplus of at least $500,000,000; provided,
however, that nothing contained in this clause (vi) shall preclude the Company
from organizing subsidiaries.

                           (vii) Transactions with Affiliates. Except as set
forth in the Offering Documents, the Company will not hereafter enter into any
transaction, including, without limitation, the purchase, sale, lease or
exchange of property, real or personal, the purchase or sale of any security,
the borrowing or lending of any money, or the rendering of any service, with any
person or entity affiliated directly or indirectly with the Company (including
officers, directors and shareholders owning 5% or more of the Company's
outstanding capital stock), except in the ordinary course of and pursuant to the
reasonable requirements of its business and upon fair and reasonable terms not
less favorable than would be obtained in a comparable arms-length transaction
with any other person or entity not affiliated with the Company and, where the
transaction is valued at in excess of $50,000, with the prior consent of the
Holder or its representative, not to be unreasonably withheld or delayed.

                           (viii) Dividends. The Company will not declare or pay
any cash dividends or distributions on its outstanding capital stock.

                           (ix) No Merger, etc. The Company will not engage in a
merger, consolidation, share exchange, acquisition, reorganization, declaration
of bankruptcy, change in voting control, sale of voting control, or sale of
substantially all of its assets or business in which its current shareholders do
not own at least 51% of the outstanding shares of the surviving corporation or
entity.

         5. Events of Default

                  A. The term "Event of Default" shall mean any of the events
set forth in this Section 5A (the term "Company" for this purpose shall include
all subsidiaries of the Company):

                                        5
<PAGE>

                           (i) Non-Payment of Obligations. The Company shall
default in the payment of the principal or accrued interest of this Note as and
when the same shall become due and payable, whether by acceleration or otherwise
for ten (10) days.

                           (ii) Non-Performance of Affirmative Covenants. The
Company shall default in the due observance or performance of any covenant set
forth in Section 4A, which default shall continue uncured for thirty (30) days
after notice thereof.

                           (iii) Non-Performance of Negative Covenants. The
Company shall default in the due observance or performance of any covenant set
forth in Section 4B, which default shall continue uncured for thirty (30) days
after notice thereof.

                           (iv) Bankruptcy, Insolvency, etc. The Company shall:

                                    (a) admit in writing its inability to pay
its debts as they become due, excluding such debts in existence on the date of
the closing of the Offering;

                                    (b) apply for, consent to, or acquiesce in,
the appointment of a trustee, receiver, sequestrator or other custodian for the
Company or any of its property, or make a general assignment for the benefit of
creditors;

                                    (c) in the absence of such application,
consent or acquiesce in, permit or suffer to exist the appointment of a trustee,
receiver, sequestrator or other custodian for the Company or for any part of its
property;

                                    (d) permit or suffer to exist the
commencement of any bankruptcy, reorganization, debt arrangement or other case
or proceeding under any bankruptcy or insolvency law, or any dissolution,
winding up or liquidation proceeding, in respect of the Company, and, if such
case or proceeding is not commenced by the Company or converted to a voluntary
case, such case or proceeding shall be consented to or acquiesced in by the
Company or shall result in the entry of an order for relief; or

                                    (e) take any corporate or other action
authorizing, or in furtherance of, any of the foregoing.

                           (v) Cross-Default. The Company shall default in the
payment when due of any amount payable under any other obligation of the Company
for money borrowed in excess of $100,000.

                  B. Action if Bankruptcy. If any Event of Default described in
clauses (iv)(a) through (d) of Section 5A shall occur, the outstanding principal
amount of this Note and all other obligations hereunder shall automatically be
and become immediately due and payable, without notice or demand.

                  C. Action if Other Event of Default. If any Event of Default
(other than any Event of Default described in clauses (iv)(a) through (d) of
Section 5A) shall occur for any reason, whether voluntary or involuntary, and be
continuing, for 30 days after notice, the Holder may, upon

                                        6
<PAGE>

notice to the Company, declare all or any portion of the outstanding principal
amount of the Note, together with interest accrued thereon, to be due and
payable and any or all other obligations hereunder to be due and payable,
whereupon the full unpaid principal amount hereof, such accrued interest and any
and all other such obligations which shall be so declared due and payable shall
be and become immediately due and payable, without further notice, demand, or
presentment ("Acceleration").

                  In addition, during an Event of Default specifically described
in clause (i) of Section 5A, the Holder shall be entitled to (a) an increase in
the interest on the Notes at the rate of 15% per annum and (b) payment of 25% of
principal plus accrued interest on the Maturity Date, then the balance of
outstanding principal and interest due in eight (8) consecutive equal monthly
installments thereafter (the "Default Period Payments") with any balance of
payments outstanding due accelerated by the consummation of the IPO during such
period. In the event the Company is in default on any of the Default Period
Payments, the Holder shall be entitled to (a) an increase in the interest on the
Notes at the rate of 18% per annum, (b) any contract or other remedies
prescribed by law and equity, and (c) election of such number of the Company's
Board of Directors as shall equal 50% of the resulting number of Board members
for so long as the default continues and remains uncured by the Company with
respect to the Default Period Payments. In the event the Company is in
compliance with the Default Period Payments as scheduled, the Noteholders shall,
in their sole discretion, forbear from exercising any remedies other than the
interest increase to 15% per annum.

         6. Miscellaneous.

                  A. Parties in Interest. All covenants, agreements and
undertakings in this Note binding upon the Company or the Payee shall bind and
inure to the benefit of the successors and permitted assigns of the Company and
the Payee, respectively, whether so expressed or not.

                  B. Governing Law. This Note shall be governed by and construed
in all respects under the laws of the State of New York, without reference to
its conflict of laws rules or principles. Any suit, action, proceeding or
litigation arising out of or relating to this Note shall be brought and
prosecuted only in federal and state courts in the City, County and State of New
York. The parties hereby irrevocably and unconditionally consent to the
jurisdiction of each such court or courts located within the State of New York
and to service of process by registered or certified mail, return receipt
requested, or by any other manner provided by applicable law, and hereby
irrevocably and unconditionally waive any right to claim that any suit, action,
proceeding or litigation so commenced has been commenced in an inconvenient
forum.

                  C. Waiver of Jury Trial. THE PARTIES HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS NOTE OR ANY OTHER DOCUMENT OR INSTRUMENT EXECUTED AND
DELIVERED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE PAYEE OR THE COMPANY.
THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PAYEE'S PURCHASING THIS NOTE.

                  D. Notice. All notices shall be in writing, and shall be
deemed given when actually delivered to a party at its address set forth herein
personally, by a reputable overnight

                                        7
<PAGE>

messenger, or by receipted facsimile transmission, if to the Company at
facsimile (781) 497-3033 and if to the Payee at facsimile (___) ________, unless
the Note holder has not executed an Noteholder Agency Agreement as set forth in
the Offering Documents, in which case the address for notice shall be as set
forth in the books and records of the Company.

                  E. The Placement Agent. The Placement Agent is the placement
agent for certain promissory notes, including the enclosed. Certain holders of
these Notes have signed a Noteholder Agency Agreement with the Placement Agent
that will affect the exercise of the rights set forth herein.

                  F. No Waiver. No delay in exercising any right hereunder shall
be deemed a waiver thereof, and no waiver shall be deemed to have any
application to any future default or exercise of rights hereunder.

                  G. Most Favored. If, subsequent to the date hereof and except
as provided in the Offering Documents with respect to the issuance or
_________(as defined in the Offering Documents), the Company completes a
financing involving notes similar hereto on any terms more favorable to the
holders thereof then the holders hereof, this Note, without any action on the
part of any person, shall be deemed to include such more favorable terms.

                  IN WITNESS WHEREOF, this Note has been executed and delivered
on the date specified above by the duly authorized representative of the
Company.

                                           BRIDGELINE SOFTWARE, INC.

                                           By: ________________________________
                                               Thomas Massie, President and CEO

                                        8
<PAGE>

                                 ACKNOWLEDGEMENT

State of New York      )
                       ss.:
County of _____        )

         On the _____ day of _________, in the year 2006, before me, the
undersigned, a Notary Public in and for said state, personally appeared Thomas
Massie, President and Chief Executive Officer, personally known to me or proved
to me on the basis of satisfactory evidence to be the person whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity and that by his signature on the instrument, the person or
the entity upon behalf of which the person acted, executed the instrument.

                                                    ----------------------------
                                                            Notary Public

                                        9
<PAGE>

                         SCHEDULE 4B(v)--EXISTING LIENS

The Company maintains a $750,000 credit line under which it can borrow up to 80%
of its eligible outstanding accounts receivable. In connection with this credit
line, the lender obtained a first priority security interest in all assets of
the Company.

                                       10
<PAGE>
                                   SCHEDULE A

    Investor Name                                    Amount of Note

Anderson, Neil T.                                      $300,000.00

Auersperg, Paul                                        $ 50,000.00

Balfour Associates LP                                  $200,000.00

Burg Family Trust                                      $ 50,000.00

Callahan, Brian                                        $100,000.00

Coldrick, William                                      $100,000.00

Davenport, Edward C.                                   $ 50,000.00

Davis, James                                           $200,000.00

Dupree, Thomas                                         $ 50,000.00

Fortune Footwear                                       $ 50,000.00

Freed, Albert                                          $ 50,000.00

Herbert Wrabel Living Trust                            $ 50,000.00

High Capital Funding, LLC                              $100,000.00

Jia, Charles                                           $ 50,000.00

Kotler, Elia                                           $ 50,000.00

Landy, John                                            $300,000.00

Lefebvre, Scott  & Suzanne                             $ 50,000.00

Lowrance, Larry                                        $100,000.00

Massie, Thomas & Theresa                               $100,000.00

McCoy, Robert S.                                       $ 50,000.00

Panagolpolous, John & Betty                            $100,000.00

Rizos, George                                          $ 50,000.00

Troutman, John                                         $ 50,000.00

Baker, Christopher P.                                  $100,000.00

Davis, James                                           $ 50,000.00

Dupree, Thomas                                         $ 50,000.00

Heffernan, Ronald                                      $100,000.00

Kersch, Mitchell & Allison                             $ 50,000.00

McLemore, Robert                                       $ 50,000.00

Mead, Ian D.                                           $100,000.00

Seeger, Robert & Kara                                  $ 50,000.00

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