Datawatch Corporation
DATAWATCH CORP (Form: 4, Received: 02/24/2011 10:29:31)
FORM 4
[ X ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).         
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
                                                                                  
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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

OSBORNE RICHARD DE J
2. Issuer Name and Ticker or Trading Symbol

DATAWATCH CORP [ DWCH ]
5. Relationship of Reporting Person(s) to Issuer (Check all applicable)

__ X __ Director                      _____ 10% Owner
_____ Officer (give title below)      _____ Other (specify below)
(Last)          (First)          (Middle)

C/O DATAWATCH CORPORATION, 271 MILL ROAD, QUORUM OFFICE PARK
3. Date of Earliest Transaction (MM/DD/YYYY)

2/22/2011
(Street)

CHELMSFORD, MA 01824
(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

 
6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Trans. Date 2A. Deemed Execution Date, if any 3. Trans. Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common Stock   2/22/2011     M    8000   A $0.74   313502   (1) D    
Common Stock   2/22/2011     M    5000   A $1.375   318502   (1) D    
Common Stock   2/22/2011     M    5000   A $3.61   323502   (1) D    

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Trans. Date 3A. Deemed Execution Date, if any 4. Trans. Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
6. Date Exercisable and Expiration Date 7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (Right to Buy)   (2) $0.74   2/22/2011     M         8000      (3) 3/8/2012   Common Stock   8000   $0   70000   D    
Stock Option (Right to Buy)   (2) $1.375   2/22/2011     M         5000      (4) 3/7/2013   Common Stock   5000   $0   65000   D    
Stock Option (Right to Buy)   (2) $3.61   2/22/2011     M         5000      (5) 3/10/2016   Common Stock   5000   $0   60000   D    

Explanation of Responses:
( 1)  Includes 143,370 shares held by Carnegie Hill Associates, LLC. Mr. Osborne is the Managing Principal of Carnegie Hill Associates, LLC and may be deemed a beneficial owner of the shares held by Carnegie Hill Associates, LLC. Mr. Osborne disclaims beneficial ownership of these shares except to the extent of his pecuniary interest therein.
( 2)  Stock Options issued pursuant to the Datawatch Corporation 1996 Stock Plan.
( 3)  666 vested on 6/8/2002 and an additional 666 vested at the end of each three-month period thereafter for ten (10) such periods, with 674 vesting on 3/8/05.
( 4)  416 vested on 6/7/2003 and an additional 416 vested at the end of each three-month period thereafter for ten (10) such periods, with 424 vesting on 3/7/06.
( 5)  416 vested on 6/10/06 and an additional 416 vested at the end of each three-month period thereafter for ten (10) such periods, with 424 vesting on 3/10/09.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
OSBORNE RICHARD DE J
C/O DATAWATCH CORPORATION
271 MILL ROAD, QUORUM OFFICE PARK
CHELMSFORD, MA 01824
X



Signatures
By: /s/ Murray P. Fish as attorney-in-fact for Richard de J. Osborne 2/24/2011
** Signature of Reporting Person Date


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* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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