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Exhibit 10.45
 

April 14, 2006

Mr. Henri Nouri
Executive Vice President
Smart Online, Inc.
2530 Meridian Parkway
Durham, North Carolina  27713
 

Dear Henry:

This letter confirms that pursuant to Article X of its Bylaws, Smart Online,
Inc. will indemnify you, to the fullest extent permitted by Delaware law, for
any and all fees and expenses, as defined in Article X of the Bylaws
("Expenses"), including but not limited to attorneys' fees incurred by you or on
your behalf in connection with a proceeding that has been initiated by the
Securities and Exchange Commission and any other related proceeding that may
arise ("Proceeding").

Pursuant to Article X of its Bylaws, Smart Online, Inc. further agrees that
having received an undertaking from you agreeing that you will repay the
Expenses described herein should it ultimately be determined that you were not
entitled to indemnification, Smart Online, Inc. will pay Expenses incurred by
you in advance of the final disposition of the Proceeding.

 
Very truly yours,
     
/s/ Dennis Michael Nouri
 
Dennis Michael Nouri
 
President and Chief Executive Officer
Smart Online, Inc.

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CERTIFICATE REGARDING REPAYMENT OF EXPENSES

The undersigned officer of Smart Online, Inc. ("Company") hereby acknowledges
and agrees to repay any and all expenses paid by the Company on behalf of the
undersigned in defending any civil, criminal, administrative or investigative
action, suit or proceeding in relation to the Order of Suspension of Trading
issued by the Securities and Exchange Commission ("SEC") regarding the Company
on January l7, 2006 and the investigation being conducted by the SEC, should it
be determined that the undersigned is not entitled to be indemnified by the
Company pursuant to the Company's Bylaws and Delaware Corporation Law.

Agree to and Accepted:
Witness:
   
By: /s/ Henry Nouri
           Henry Nouri
By: /s/ James Gayton
         James Gayton
   
Title: Executive Vice President
Date: January 26,2006
   
Date: January 26, 2006