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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>WASHINGTON, DC 20549</font></B></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>FORM 8-K</font></B></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Date of report:  February 23, 2009</font></b></p>


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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>PIPELINE DATA INC.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of small business issuer in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


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        <td width="168" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Delaware</font></p> </td>
        <td width="208" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>7389</font></p> </td>
        <td width="184" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>13-3953764</font></p> </td> </tr>
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        <td width="168" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(State or jurisdiction of</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>incorporation or organization)</font></p> </td>
        <td width="208" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(Primary Standard Indus.</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Classification Code Number)</font></p> </td>
        <td width="184" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>(I.R.S. Employer</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Identification No)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>1515 Hancock Street, Suite 301, Hancock Plaza</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Quincy, Massachusetts 02169</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(617) 405-2600</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=1>(Address and telephone number of principal executive offices)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Randal A. McCoy</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Pipeline Data Inc.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>4400 North Point Parkway</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Alpharetta, GA 30022</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(687) 867-6000</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=1> (Name, address and telephone number of agent for service)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>With copy to:</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Sheila G. Corvino, Esq.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Pipeline Data Inc.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>4400 Northpoint Parkway</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Alpharetta, GA 30022</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(687) 867-6000</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Fax:  802-867-2468</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>1515 Hancock Street, Suite 301, Hancock Plaza</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Quincy, Massachusetts 02169</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(Former name or former address, if changed since last report)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>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 (see General Instruction A.2. below):     </font></p>

<p style=' margin-bottom:0pt; margin-top:6pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2><font face=Wingdings>o</font>Written  communications  pursuant to Rule 425 under the  Securities Act (17 CFR 230.425)</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font face=Wingdings>o</font> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:left;'><font size=2><font face=Wingdings>o</font> Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 1.01 Entry into a Material Definitive Agreement.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>On February 17, 2009, we closed  the transactions contemplated by the Stock Purchase Agreement between our company and Pipeline Holdings, LLC (&#147;Holdings&#148;), initially signed February 2, 2009, including the purchase of a $15 face amount preferred stock instrument  by Holdings. On February 17, 2009, we requested that our transfer agent issue to Holdings 82,854,292 shares of our common stock,&nbsp; $.001 par value, (&#147;Common Stock&#148;). </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>On February 20, 2009 we filed a Certificate of Designations and Preferences for a new Series A Convertible Preferred Stock (&#147;Series A Preferred&#148;) and requested that our transfer agent issue to Holdings 5 million  shares of Series A Preferred. Upon the effectiveness of amendments to our Certificate of Incorporation to increase our authorized shares of Common Stock to 500 million and our authorized shares of  Preferred Stock, par value $0.001, (&#147;Preferred Stock&#148;) to 10 million,  the Common Stock and Series A Preferred shall be automatically exchanged for 5 million shares of the Series B Convertible Preferred Stock (&#147;Series B Preferred&#148;).  Series B Preferred is a $15 million face amount preferred convertible stock instrument convertible into our Common Stock at 12.2 cents per share with a 16% payment-in-kind (PIK). Total shares outstanding post transaction will be
approximately 41 million common and the 5 million Series B Preferred shall be initially convertible into 122,950,820 shares or 68% of our Common Stock subject to adjustments for any stock dividends, splits, combinations and similar events. The foregoing description of the Stock Purchase Agreement does not purport to be a complete summary and is qualified in its entirety by reference to the full text which is attached hereto as Exhibit&nbsp;10.1. A copy of the Investor Rights Agreement between the parties and contemplated by the transaction is attached hereto as Exhibit 10.2. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>As contemplated by the completed transaction, Pipeline Holdings, LLC has also made available to the Company a $15 million acquisition line of credit, maturing September 30, 2012. A copy of the Line of Credit is attached hereto as Exhibit 10.3. No funds have been drawn down from this line of credit and, thus, no direct financial obligation has been created currently.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>Jack Rubinstein, Harold Denton, Larry Goldstein, Michael Greenburg, John Reeder and Kevin Weller have resigned from our board of directors effective February 17, 2009. MacAllister Smith resigned as Chief Executive Officer but will remain a director and has been appointed Vice Chairman of our company. Daniel Nenandovic has been appointed Chairman of the Board of Directors. Peter Kight, Randal McCoy and Timothy Agnew have been appointed Members of the Board of Directors. Additionally, Randal McCoy has been  appointed Chief Executive Officer. Philip Chait has resigned as Corporate Secretary. General Counsel Sheila Corvino will remain as General Counsel but also has been appointed Corporate Secretary. James Plappert has resigned as Chief Marketing Officer.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>As contemplated by the completed transaction, we have entered into a Management Agreement with ComVest Advisors, LLC, as Manager. The agreement contemplates the Manager providing us management services such as:  (i) assisting the Company with establishing certain financial, accounting and administrative procedures; (ii) advising the Company with respect to future acquisition and disposition strategy; (iii) assisting the Company in developing tax planning strategies; (iv) providing directors, advisers and observers to the board of directors of the Company as provided by agreement between the parties; (v) assisting the Company in formulating risk management policies; and (vi) providing such other services as may be reasonably requested by the Company and may be agreed to by the Manager. We will pay the Manager a monthly fee equal to the greater of greater of $20,833 or 5% of EBITDA for the
corresponding month; a 3% M&amp;A fee of the aggregate enterprise value of any target acquisition candidate that we acquire, or if the we are acquired  or any of our assets are sold. We will also reimburse the Manager for all reasonable out-of-pocket costs, fees or expenses incurred. The foregoing description of the Management Agreement does not purport to be a complete summary and is qualified in its entirety by reference to the full text which is attached hereto as Exhibit&nbsp;10.4. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'>The  information  in this  Form  8-K  is  being furnished  pursuant to Item 1.01 shall not be deemed to be &#147;filed&#148; for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the &#147;Exchange  Act&#148;), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Item 3.02 Unregistered Sales of Equity Securities. </font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The information in Item&nbsp;1.01 of this Current Report on Form 8-K is incorporated by reference into this Item&nbsp;3.02. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The Shares will be issued without registration under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), or state securities laws, in reliance on the exemptions provided by Section&nbsp;4(2) of the Securities Act and Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws, as the offering was not a public offering. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'>The  information  in this  Form  8-K  is  being furnished  pursuant to Item 3.02 &#147;Other Events&#148; shall not be deemed to be &#147;filed&#148; for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the &#147;Exchange  Act&#148;), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.</p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Item 5.01 Changes in Control of Registrant. </font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The information in Item&nbsp;1.01 of this Current Report on Form 8-K is incorporated by reference into this Item&nbsp;5.01. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The  information  in this  Form  8-K  is  being furnished  pursuant to Item 5.01 &#147;Other Events&#148; shall not be deemed to be &#147;filed&#148; for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the &#147;Exchange  Act&#148;), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. </font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>On February 17. 2009, Jack Rubinstein, Harold Denton<sup>1,2</sup>, Larry Goldstein<sup>1,2</sup>, Michael Greenburg<sup>1,2,3,4</sup>, John Reeder<sup>1,3,4</sup>and Kevin Weller have resigned from our board of directors. MacAllister Smith resigned as Chief Executive Officer but will remain a director and be appointed Vice Chairman of our Company. Daniel Nenandovic has been appointed Chairman of the Board of Directors. Peter Kight, Randal McCoy and Timothy Agnew have been appointed Members of the Board of Directors. Messers Agnew and Nenadovic have been named members of the audit committee and Messers Kight and Nenadovic have been named members of the compensation committee. Additionally, Randal McCoy has been appointed Chief Executive Officer. Philip Chait has resigned as Corporate Secretary. Philip Chait has resigned as Corporate Secretary. General Counsel Sheila Corvino will remain as
General Counsel but also has been appointed Corporate Secretary. James Plappert has resigned as Chief Marketing Officer. Resignations are attached hereto as Exhibit&nbsp;99.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td>
        <td  colspan="2" valign=top style=' height:10.3pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Independent Director </font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.3pt'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2</font></p> </td>
        <td width="598" valign=top style=' height:10.3pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Member of Audit Committee</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Member of Compensation Committee</font></p> </td>
        <td  width="46">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='height:10.3pt'>
        <td width="35" valign=top style=' height:10.3pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4</font></p> </td>
        <td  colspan="4" valign=top style=' height:10.3pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Member of Nominating and Governance Committee</font></p> </td> </tr>
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        <td width="35" ></td>

        <td width="598" ></td>

        <td width="5" ></td>

        <td width="36" ></td>

        <td width="46" ></td> </tr> </table>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'>The  information  in this  Form  8-K  is  being furnished  pursuant to Item 5.02 shall not be deemed to be &#147;filed&#148; for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the &#147;Exchange  Act&#148;), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other </p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'>&nbsp;</p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'>document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.</p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Item 8.01. Other Events.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'>The proceeds from the financing from Pipeline Holdings, LLC have enabled Pipeline to extinguish an outstanding put right on 9,398,058 shares of Pipeline Data&#146;s Common Stock held by the former shareholders of Charge.com, Inc., which was redeemable for almost $16 million with interest accruing at 18%. This put right has been settled in full for $2 million in cash and the return of the Charge.com name  with related domain rights,  The 9,398,058 <font size=2>shares of Pipeline Common Stock have been returned to the Company and will be canceled. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The completion of the transactions contemplated by the Stock Purchase Agreement between our company and Holdings was a condition precedent to the effectiveness of restructuring our $37 million, 8% coupon convertible notes due June 29, 2010. These notes have now been restructured to a $42.1 million loan, with a 10% coupon until June 30, 2010 and a 14% coupon until June 30, 2011. The Company has the option to extend the notes for an additional year until June 30, 2012, at its sole discretion. As restructured, all convertible equity features have been removed from the notes and all11.1 million detached full-ratchet warrants have been terminated. Prior to closing of the transaction with Holdings, an Amendment No. 1 to the Securities Purchase Agreement among the more than 75% of the noteholders and our company (&#147;Amendment No. 1&#148;) was executed and held in escrow by lenders&#146; counsel.
All noteholders have agreed to the restructured notes, which such restructuring is effective as of December 31, 2001. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'>The  information  in this  Form  8-K  is  being furnished  pursuant to Item 8.01 &#147;Other Events&#148; shall not be deemed to be &#147;filed&#148; for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the &#147;Exchange  Act&#148;), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.</p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'>
<b><font size=2>Exhibit Index</font></b></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.1</font></p> </td>
        <td width="635" nowrap valign=top style='padding:8.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Stock Purchase Agreement dated February 2, 2009 by and between Pipeline Data Inc. and Pipeline Holdings, LLC.</font></p> </td> </tr></table>
</div>



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    <tr >
        <td width="48" nowrap valign=top style='padding:8.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.2</font></p> </td>
        <td width="663" nowrap valign=top style='padding:8.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investor Rights Agreement dated as of February 2, 2009 by and between Pipeline Data Inc. and Pipeline Holdings, LLC.</font></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="705" style='border-collapse:collapse'>
    <tr >
        <td width="48" nowrap valign=top style='padding:8.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.3</font></p> </td>
        <td width="657" nowrap valign=top style='padding:8.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Line of Credit Agreement dated as of February 2, 2009 by and between Pipeline Data Inc. and Pipeline Holdings, LLC.</font></p> </td> </tr></table>
</div>



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    <tr >
        <td width="48" nowrap valign=top style='padding:8.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.4</font></p> </td>
        <td width="621" nowrap valign=top style='padding:8.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Management Agreement dated as of February 2, 2009 by and between Pipeline Data Inc. and ComVest Advisors</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="173" style='border-collapse:collapse; '>
    <tr >
        <td width="48" nowrap valign=top style='padding:8.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>99</font></p> </td>
        <td width="125" nowrap valign=top style='padding:8.0pt 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Board Resignations  </font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Pursuant to the  requirements  of the  Securities and Exchange Act of 1934, the  Registrant  has  caused  this  report  to be  signed  on its  behalf by the undersigned thereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Pipeline Data Inc.</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="33" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Dated:</font></p> </td>
        <td width="240" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><br> <font size=2> February 23, 2009</font></p> </td>
        <td width="45" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>By:&nbsp;</font></p> </td>
        <td width="240" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><u><font size=2>/s/ Randal A. McCoy</font></u><u></u></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Name:&nbsp;</font></p> </td>
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Randal A. McCoy</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="33" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="45" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Title:&nbsp;</font></p> </td>
        <td width="240" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Chief Executive Officer</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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{"company-data": {"conformed-name": "PIPELINE DATA INC", "cik": "0001086533", "assigned-sic": "7389", "irs-number": "133953764", "fiscal-year-end": "1205"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-50611", "film-number": "09632460"}, "business-address": {"street1": "1599 WASHINGTON STREET", "street2": "SUITE 1D", "city": "BRAINTREE", "state": "MA", "zip": "02184", "phone": "781 843 3812"}, "mail-address": {"street1": "1599 WASHINGTON STREET", "street2": "SUITE 1D", "city": "BRAINTREE", "state": "MA", "zip": "02184"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report:  February 23, 2009
PIPELINE DATA INC.
(Exact name of small business issuer in its charter)
Delaware
7389
13-3953764
(State or jurisdiction of
incorporation or organization)
(Primary Standard Indus.
Classification Code Number)
(I.R.S. Employer
Identification No)
1515 Hancock Street, Suite 301, Hancock Plaza
Quincy, Massachusetts 02169
(617) 405-2600
(Address and telephone number of principal executive offices)
Randal A. McCoy
Pipeline Data Inc.
4400 North Point Parkway
Alpharetta, GA 30022
(687) 867-6000
(Name, address and telephone number of agent for service)
With copy to:
Sheila G. Corvino, Esq.
Pipeline Data Inc.
4400 Northpoint Parkway
Alpharetta, GA 30022
(687) 867-6000
Fax:  802-867-2468
1515 Hancock Street, Suite 301, Hancock Plaza
Quincy, Massachusetts 02169
(Former name or former address, if changed since last report)
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 (see General Instruction A.2. below):
o
Written  communications  pursuant to Rule 425 under the  Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the Exchange Act (17 CFR 240.14d-2(b))
Item 1.01 Entry into a Material Definitive Agreement.
On February 17, 2009, we closed  the transactions contemplated by the Stock Purchase Agreement between our company and Pipeline Holdings, LLC ("Holdings"), initially signed February 2, 2009, including the purchase of a $15 face amount preferred stock instrument  by Holdings. On February 17, 2009, we requested that our transfer agent issue to Holdings 82,854,292 shares of our common stock,  $.001 par value, ("Common Stock").
On February 20, 2009 we filed a Certificate of Designations and Preferences for a new Series A Convertible Preferred Stock ("Series A Preferred") and requested that our transfer agent issue to Holdings 5 million  shares of Series A Preferred. Upon the effectiveness of amendments to our Certificate of Incorporation to increase our authorized shares of Common Stock to 500 million and our authorized shares of  Preferred Stock, par value $0.001, ("Preferred Stock") to 10 million,  the Common Stock and Series A Preferred shall be automatically exchanged for 5 million shares of the Series B Convertible Preferred Stock ("Series B Preferred").  Series B Preferred is a $15 million face amount preferred convertible stock instrument convertible into our Common Stock at 12.2 cents per share with a 16% payment-in-kind (PIK). Total shares outstanding post transaction will be
approximately 41 million common and the 5 million Series B Preferred shall be initially convertible into 122,950,820 shares or 68% of our Common Stock subject to adjustments for any stock dividends, splits, combinations and similar events. The foregoing description of the Stock Purchase Agreement does not purport to be a complete summary and is qualified in its entirety by reference to the full text which is attached hereto as Exhibit 10.1. A copy of the Investor Rights Agreement between the parties and contemplated by the transaction is attached hereto as Exhibit 10.2.
As contemplated by the completed transaction, Pipeline Holdings, LLC has also made available to the Company a $15 million acquisition line of credit, maturing September 30, 2012. A copy of the Line of Credit is attached hereto as Exhibit 10.3. No funds have been drawn down from this line of credit and, thus, no direct financial obligation has been created currently.
Jack Rubinstein, Harold Denton, Larry Goldstein, Michael Greenburg, John Reeder and Kevin Weller have resigned from our board of directors effective February 17, 2009. MacAllister Smith resigned as Chief Executive Officer but will remain a director and has been appointed Vice Chairman of our company. Daniel Nenandovic has been appointed Chairman of the Board of Directors. Peter Kight, Randal McCoy and Timothy Agnew have been appointed Members of the Board of Directors. Additionally, Randal McCoy has been  appointed Chief Executive Officer. Philip Chait has resigned as Corporate Secretary. General Counsel Sheila Corvino will remain as General Counsel but also has been appointed Corporate Secretary. James Plappert has resigned as Chief Marketing Officer.
As contemplated by the completed transaction, we have entered into a Management Agreement with ComVest Advisors, LLC, as Manager. The agreement contemplates the Manager providing us management services such as:  (i) assisting the Company with establishing certain financial, accounting and administrative procedures; (ii) advising the Company with respect to future acquisition and disposition strategy; (iii) assisting the Company in developing tax planning strategies; (iv) providing directors, advisers and observers to the board of directors of the Company as provided by agreement between the parties; (v) assisting the Company in formulating risk management policies; and (vi) providing such other services as may be reasonably requested by the Company and may be agreed to by the Manager. We will pay the Manager a monthly fee equal to the greater of greater of $20,833 or 5% of EBITDA for the
corresponding month; a 3% M&A fee of the aggregate enterprise value of any target acquisition candidate that we acquire, or if the we are acquired  or any of our assets are sold. We will also reimburse the Manager for all reasonable out-of-pocket costs, fees or expenses incurred. The foregoing description of the Management Agreement does not purport to be a complete summary and is qualified in its entirety by reference to the full text which is attached hereto as Exhibit 10.4.
The  information  in this  Form  8-K  is  being furnished  pursuant to Item 1.01 shall not be deemed to be "filed" for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the "Exchange  Act"), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 3.02 Unregistered Sales of Equity Securities.
The information in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 3.02.
The Shares will be issued without registration under the Securities Act of 1933, as amended (the "Securities Act"), or state securities laws, in reliance on the exemptions provided by Section 4(2) of the Securities Act and Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws, as the offering was not a public offering.
The  information  in this  Form  8-K  is  being furnished  pursuant to Item 3.02 "Other Events" shall not be deemed to be "filed" for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the "Exchange  Act"), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 5.01 Changes in Control of Registrant.
The information in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 5.01.
The  information  in this  Form  8-K  is  being furnished  pursuant to Item 5.01 "Other Events" shall not be deemed to be "filed" for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the "Exchange  Act"), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On February 17. 2009, Jack Rubinstein, Harold Denton
1,2
, Larry Goldstein
1,2
, Michael Greenburg
1,2,3,4
, John Reeder
1,3,4
and Kevin Weller have resigned from our board of directors. MacAllister Smith resigned as Chief Executive Officer but will remain a director and be appointed Vice Chairman of our Company. Daniel Nenandovic has been appointed Chairman of the Board of Directors. Peter Kight, Randal McCoy and Timothy Agnew have been appointed Members of the Board of Directors. Messers Agnew and Nenadovic have been named members of the audit committee and Messers Kight and Nenadovic have been named members of the compensation committee. Additionally, Randal McCoy has been appointed Chief Executive Officer. Philip Chait has resigned as Corporate Secretary. Philip Chait has resigned as Corporate Secretary. General Counsel Sheila Corvino will remain as
General Counsel but also has been appointed Corporate Secretary. James Plappert has resigned as Chief Marketing Officer. Resignations are attached hereto as Exhibit 99.
1
Independent Director
2
Member of Audit Committee
3
Member of Compensation Committee
4
Member of Nominating and Governance Committee
The  information  in this  Form  8-K  is  being furnished  pursuant to Item 5.02 shall not be deemed to be "filed" for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the "Exchange  Act"), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other
document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01. Other Events.
The proceeds from the financing from Pipeline Holdings, LLC have enabled Pipeline to extinguish an outstanding put right on 9,398,058 shares of Pipeline Data's Common Stock held by the former shareholders of Charge.com, Inc., which was redeemable for almost $16 million with interest accruing at 18%. This put right has been settled in full for $2 million in cash and the return of the Charge.com name  with related domain rights,  The 9,398,058
shares of Pipeline Common Stock have been returned to the Company and will be canceled.
The completion of the transactions contemplated by the Stock Purchase Agreement between our company and Holdings was a condition precedent to the effectiveness of restructuring our $37 million, 8% coupon convertible notes due June 29, 2010. These notes have now been restructured to a $42.1 million loan, with a 10% coupon until June 30, 2010 and a 14% coupon until June 30, 2011. The Company has the option to extend the notes for an additional year until June 30, 2012, at its sole discretion. As restructured, all convertible equity features have been removed from the notes and all11.1 million detached full-ratchet warrants have been terminated. Prior to closing of the transaction with Holdings, an Amendment No. 1 to the Securities Purchase Agreement among the more than 75% of the noteholders and our company ("Amendment No. 1") was executed and held in escrow by lenders' counsel.
All noteholders have agreed to the restructured notes, which such restructuring is effective as of December 31, 2001.
The  information  in this  Form  8-K  is  being furnished  pursuant to Item 8.01 "Other Events" shall not be deemed to be "filed" for  purposes of Section 18 of the  Securities Exchange Act of 1934, as amended (the "Exchange  Act"), or otherwise  subject to the liability of that section,  and shall not be  incorporated by reference into any  registration  statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Exhibit Index
10.1
Stock Purchase Agreement dated February 2, 2009 by and between Pipeline Data Inc. and Pipeline Holdings, LLC.
10.2
Investor Rights Agreement dated as of February 2, 2009 by and between Pipeline Data Inc. and Pipeline Holdings, LLC.
10.3
Line of Credit Agreement dated as of February 2, 2009 by and between Pipeline Data Inc. and Pipeline Holdings, LLC.
10.4
Management Agreement dated as of February 2, 2009 by and between Pipeline Data Inc. and ComVest Advisors
99
Board Resignations
SIGNATURES
Pursuant to the  requirements  of the  Securities and Exchange Act of 1934, the  Registrant  has  caused  this  report  to be  signed  on its  behalf by the undersigned thereunto duly authorized.
Pipeline Data Inc.
Dated:
February 23, 2009
By:
/s/ Randal A. McCoy
Name:
Randal A. McCoy
Title:
Chief Executive Officer