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| 1.   | Section                2. (a) of the Agreement shall be deleted in its entirety and replaced                by                the following paragraph: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.   | Section                3. (a) of the Agreement shall be deleted in its entirety and replaced                by                the following paragraph: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.   | All                other terms and conditions of the Agreement shall remain in full                force and                effect. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------|

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| **SMART                    ONLINE, INC.**                                                                                                                                                        | **THOMAS                    FURR**                                                                                                                                                                                                       |
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|                                                                                                                                                                                             |                                                                                                                                                                                                                                     |
| By:                    /s/                    Michael                    Nouri                    | By:                    /s/                    Thomas                    Furr                           |
| Name:                    Michael Nouri                                                                                                                                                           |                                                                                                                                                                                                                                     |
| Title:                    CEO                                                                                                                                                                    |                                                                                                                                                                                                                                     |