Document:

Confidential
      treatment has been requested for portions of this exhibit. The copy filed
      herewith omits the information subject to a confidentiality request. Omissions
      are designated [*****]. A complete version of this exhibit has been filed
      separately with the Securities and Exchange Commission with the confidentiality
      request.

    

    EXCLUSIVE
      RESELLER AND 

    MARKET
      DEVELOPMENT ALLIANCE

    

    This
      Exclusive Reseller and Market Development Agreement (“Agreement”) is entered
      into between Enerteck Chemical Corporation (“ECC”), and Tanner Fuel Services LLC
      (“Tanner Fuel”) as reseller, to be effective as of the date set forth on the
      signature page hereof (the “Effective Date”). ECC and Tanner Fuel agree as
      follows:

    

    RECITALS:

    

    WHEREAS,
      ECC has certain proprietary knowledge of the product EnerBurn and expertise
      relating to the commercial application of the product in diesel engines to
      improve fuel economy, increase engine life, and increase engine performance
      (the
“Technology”). 

    

    WHEREAS,
      ECC desires to make Tanner Fuel the exclusive reseller on the Intracoastal
      Waterway from; Houston, TX including the Bay to the Port of Houston to Houma,
      LA.

    

    NOW,
      THEREFORE, ECC and Tanner Fuel hereby agree as follows:

    

    
      	
              1.

            	
              Definition
                of Market

            

    

    

    For
      purposes of this Agreement, the term “Market” shall mean Intracoastal Waterway
      from Houston, TX including the Bay to the Port of Houston Houma,
      LA.

    

    
      	
              2.

            	
              Appointment
                of Reseller

            

    

    

    In
      consideration of Tanner Fuel’s activities promoting ECC’s Product and investment
      in marketing programs to develop substantial sales in the Market for the
      TECHNOLOGY, ECC hereby appoints Tanner Fuel to serve as the exclusive reseller
      in the Market of the TECHNOLOGY and the Product, subject to the terms and
      conditions set forth herein. 

    

    
      	 	
              a.

            	
              Term

            

    

    

    The
      initial term of this Agreement shall be three years (“Initial Term”). If this
      Agreement has not been terminated earlier, on the third anniversary of the
      Effective Date (such third anniversary, together with each successive
      anniversary of the Effective Date in which the Agreement remains in effect,
      collectively referred to as the “Renewal Date”) it shall renew automatically for
      successive one year terms. (The Initial Term and each successive one year term
      hereafter referred to collectively as the “Term”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	
              (i)

            	
              ECC
                shall have the right to terminate this Agreement at any time if Tanner
                Fuel has defaulted under the terms hereof and such default remains
                outstanding and uncured on and after the thirtieth day following
                Tanner
                Fuel’s receipt of written notice of such
                default.

            

    

    

    
      	 	
              (ii)

            	
              Tanner
                Fuel shall have the right to terminate this Agreement at any time
                if ECC
                has defaulted under the terms hereof and such default remains outstanding
                and uncured on and after the thirtieth day following ECC’s receipt of
                written notice of such default.

            

    

    

    
      	 	
              (iii)

            	
              This
                Agreement is terminable by either party upon sixty (60) days prior
                written
                notice to the other party.

            

    

    

    
      	 	
              (iv)

            	
              Tanner
                Fuel Company will not use this agreement to retain exclusive use
                of solely
                EnerBurn for its own fleet.

            

    

    

    
      	3.	
              Exclusive
                Appointment

            

    

    

    ECC
      agrees that, throughout the term of this Agreement, Tanner Fuel shall be the
      exclusive authorized reseller of the Products and the TECHNOLOGY in the Market.
      The foregoing notwithstanding, ECC shall not be in breach of this Agreement
      if,
      unknown to ECC, a purchaser of the TECHNOLOGY or the Products for use or resale
      outside the Market also uses the TECHNOLOGY in part for diesel performance
      enhancement.

    

    
      	 	
              (i)

            	
              ECC
                will actively enforce the exclusive market rights granted
                hereunder.

            

    

    

    
      	 	
              (ii)

            	
              ECC
                will not attempt to circumvent Tanner Fuel and sell the Products
                or the
                TECHNOLOGY directly to any end user in the Market. ECC additionally
                will
                not compete against Tanner Fuel within the Market during the Term
                of this
                Agreement. 

            

    

    

    
      	 	
              (iii)

            	
              However
                if there is a potential customer who refuses to purchase through
                Tanner
                Fuel, and wishes to purchase directly from
                ECC.

            

    

    

    -ECC
      shall with Tanner Fuel’s knowledge and approval effect the sale at a wholesale
      price of $[*****]
      per
      gallon of product to other reseller’s in the market. Other end user’s will be
      charged the retail price of $[*****].

    

    -If
      the
      product is sold through Tanner Fuel, Tanner Fuel retains all profit over and
      above $[*****].

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    -If
      ECC
      sells product at $[*****]
      per
      gallon ECC will pay Tanner Fuel $[*****]
      per
      gallon sold. 

    

    -
      If ECC
      sells product at $[*****]
      per
      gallon ECC will pay Tanner Fuel $[*****]
      per
      gallon sold. 

    

    
      	 	
              (iv)

            	
              ECC
                shall provide 100% of the EnerBurn Products required by Tanner Fuel
                for
                resale in the Market. 

            

    

    

    
      	 	
              b.

            	
              Support
                for Market Development

            

    

    

    ECC
      agrees that it shall provide Tanner Fuel with support to develop the commercial
      demand for the Technology and product within the Market. In furtherance of
      this
      commitment, ECC agrees that it shall, without limitation:

    

    
      	 	
              (i)

            	
              Provide
                consulting statistician services to Tanner
                Fuel;

            

    

    

    
      	 	
              (ii)

            	
              Assist
                Tanner Fuel in marketing meetings and presentations at times and
                places
                agreed upon by ECC and Tanner Fuel;

            

    

    

    
      	 	
              (iii)

            	
              Provide
                Tanner Fuel with performance assessment
                methodology.

            

    

    

    
      	4.	
              Product
                Pricing

            

    

    

    During
      the Initial Term, Tanner Fuel agrees to pay ECC the price of $[*****]
      per
      gallon FOB manufacturing point for the Product. The parties agree that the
      price
      can be adjusted at the end of the first year from the date of this agreement.
      The price per gallon shall be adjusted no more than [*****]%,
      based
      upon ECC’s demonstrated costs. Any such increase in the price per gallon shall
      also adjust the pricing for the Products sold by ECC under the terms of Section
      3 hereof so as to also incrementally increase the payment to Tanner Fuel from
      ECC under Section 3.

    

    
      	5.	
              Product
                Quality

            

    

    

    ECC
      agrees that it shall manufacture the Product to it’s proprietary specifications
      and warranty the quality of it’s product.

    

    
      	6.	
              Confidentiality

            

    

    

    
      	
            	a.	
              Confidential
                Information Defined

            

    

    

    Both
      parties shall maintain as confidential all information relating
      to their respective products, personnel, customers, business operations,
      financial condition,
      supplied
      by either party separately and/or developed jointly by the parties. Both parties
      further agree to safeguard as confidential all price books, customers’ lists,
      quotations, discount schedules, product formulations and engineering data,
      in
      any form, and will not permit their use in any way which would be detrimental
      to
      either party. Both parties also agree to surrender all confidential data to
      other party on request or on cancellation or termination of this agreement,
      and
      will not retain copies or memoranda of said information in any form whatsoever.
      This clause shall remain effective even after the cancellation or termination
      of
      this agreement for any reason.
      

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	 	
              b.

            	
              Use
                of Confidential Information in Marketing
                Activities

            

    

    

    ECC
      agrees and consents to the use of Confidential Information by Tanner Fuel for
      purposes of marketing the Product and the TECHNOLOGY within the Market, subject
      to the following terms and conditions:

    

    
      	 	
              (i)

            	
              ECC
                shall be provided with copies, in advance, of all written advertising
                and
                marketing materials that characterize the specifications, or assess
                the
                performance qualities, of the Products or otherwise disclose Confidential
                Information;

            

    

    

    
      	 	
              (ii)

            	
              ECC
                shall be entitled to utilize any Confidential Information relating
                to its
                own proprietary products, business operations or financial condition
                for
                all marketing and other purposes; except that ECC shall not disclose
                any
                Confidential Information for the purpose of competing with, or assisting
                any other person to compete with, Tanner Fuel within the Market;
                and

            

    

    

    
      	 	
              (iii)

            	
              Tanner
                Fuel shall be entitled to utilize any Confidential Information relating
                to
                its own proprietary products, business operations or financial condition
                for all marketing and other purposes. All of Tanner Fuel’s customer
                information and data shall remain its property and Tanner Fuel has
                the
                exclusive right, title, and interest to its proprietary information.
                No
                right or license, by implication or otherwise, is granted to ECC
                as a
                result of disclosure of proprietary information under the Agreement.
                Each
                Party reserves the right at any time in its sole discretion, for
                any
                reason or no reason, to refuse to provide any further access to and
                to
                demand the return of the proprietary
                information.

            

    

    

    
      	 	
              c.

            	
              Non-Disclosure
                of Confidential
                Information

            

    

    

    Throughout
      the term of this Agreement, and for twenty-four (24) months thereafter, neither
      ECC nor Tanner Fuel shall disclose any Confidential Information to any person,
      and shall limit access to the Confidential Information to only those persons
      having need during the normal course of their employment, except:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (i)

            	
              As
                permitted in Section 5(c) above;

            

    

    
      	 	
              (ii)

            	
              Upon
                the written consent of the non-disclosing
                party;

            

    

    
      	 	
              (iii)

            	
              Where
                the disclosing party can demonstrate, by written evidence, that such
                Confidential Information:

            

    

    

    -Is
      or
      becomes part of the public domain through no act or omission of the disclosing
      party;

    

    -Is
      in
      the possession of the receiving party prior to the disclosure, as evidenced
      by
      the receiving party’s business records;

    

    -Has
      been
      disclosed to the receiving party by a third party having no obligation of
      confidence to the disclosing party; or

    

    -Is
      developed independently by employees of the receiving party, as evidenced by
      the
      receiving party’s business records; or

    

    
      	 	
              (iv)

            	
              Where
                disclosure of the Confidential Information is required by law or
                governmental request, where the parties have reviewed such governmental
                request in advance of disclosure and where the requirement of such
                disclosure can not be ameliorated by the reasonable efforts of the
                disclosing party.

            

    

    

    The
      parties agree that Confidential is not within, and does not come within, the
      public domain merely because features of the Confidential Information may be
      found separately within the public domain.

    

    
      	 	
              d.

            	
              Remedies
                for Disclosure

            

    

    

    ECC
      and
      Tanner Fuel each agree that a breach of its respective obligations under this
      Section 5 shall cause irreparable injury to the non-disclosing party, and that
      the non-disclosing party shall have the right to immediate injunctive relief
      restraining the disclosing party from further breaches of this Section 5.

    

    
      	 	
              e.

            	
              Return
                of Confidential
                Information

            

    

    Upon
      the
      termination of this Agreement, all Confidential Information shall be returned
      to
      the disclosing party. The provisions of this Section 5 shall survive termination
      of the Agreement.

    

    
      	
              7.

            	
              COMPETITION.
                

            

    

    

    Other
      than any existing agreements or alliances that Tanner Fuel, or its affiliates,
      has in place as of the date hereof, Tanner Fuel agrees that it shall (a) not
      furnish services substantially similar to or that competes with the services
      being provided by Tanner Fuel to EnerTeck pursuant to this agreement to any
      third party in competition with EnerTeck, and (b) not directly engage in, nor
      enter into a joint venture which engages in, the particular business activities
      offered by EnerTeck in the territory. The restrictions placed on Tanner Fuel
      under this Section 6 shall be limited to activities and competitors related
      solely to fuel additives.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              8.

            	
              INDEMNITY

            

    

    

    EnerTeck
      agrees to protect, defend, indemnify and hold harmless and release Tanner Fuel,
      its parent, subsidiary and affiliated companies, its officers, directors and
      employees, from and against any manner of loss, liability, claim, damage,
      penalty or cost, including but not limited to, reasonable attorneys’ fees
      arising in connection with this Agreement or the design, specifications, design
      or manufacture of EnerTeck’s products.

    

    Tanner
      Fuel agrees to protect, defend, indemnify and hold harmless and release
      EnerTeck, its parent, subsidiary and affiliated companies, its officers,
      directors and employees, from and against any manner of loss, liability, claim,
      damage, penalty or cost, including but not limited to, reasonable attorneys’
fees arising in connection with this Agreement or that is asserted by any third
      party to the extent that such loss is caused by any grossly negligent or willful
      misconduct of Tanner Fuel.

    

    
      	
              9.

            	
              Miscellaneous

            

    

    

    
      	 	
              a.

            	
              Governing
                Law. THE
                INTERPRETATION AND ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED
                BY THE
                INTERNAL LAWS OF THE STATE OF
                TEXAS.

            

    

    

    
      	 	
              b.

            	
              Amendment.
                This
                Agreement shall not be amended except in a writing signed by both
                parties
                hereto.

            

    

    

    
      	 	
              c.

            	
              Assignment.
                This Agreement and the rights and obligations of the parties hereunder
                shall not be assigned to any person except upon the written consent
                of the
                non-assigning party.

            

    

    

    
      	 	
              d.

            	
              Relationship
                of the Parties. This
                Agreement shall not operate to create a relationship of partnership,
                joint
                venture or agency between the parties.

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    SIGNED
      to be effective the 7th day of May, 2007.

    

    ENERTECK
      CHEMICAL CORPORATION

    

    By:
      /s/ Dwaine Reese

    Name:
      Dwaine Reese

    Title:
      Chairman and CEO

    

    TANNER
      FUEL SERVICES LLC

    

    By:
      /s/ Elton Richard

    Name:
      Elton “Joey” Richard

    Title:
      Mgr.

    

    
      
        
        

      

      
        7Exhibit
      10.48

    REIMBURSEMENT
      AGREEMENT

    

    THIS
      REIMBURSEMENT AGREEMENT, dated as of November 10, 2006, is made and entered
      into
      by and between Smart Online, Inc., a Delaware corporation (the “Company”)
      and
      Atlas Capital SA, a Swiss business organization (“Atlas”).

    

    W
      I T N E
      S S E T H:

    

    WHEREAS,
      pursuant to a Loan Agreement dated as of even date herewith (as the same may
      be
      amended pursuant to its terms from time to time, the “Loan
      Agreement”)
      between the Company and Wachovia Bank, NA (the “Bank”),
      the
      Bank will make a revolving line of credit in a maximum principal amount of
      $1,300,000 available to the Company (the “Revolving
      Line”);
      and

     

    WHEREAS,
      to induce the Bank to enter into the Loan Agreement and make the Revolving
      Line
      available to the Company, and to provide security under the Loan Agreement
      for
      the payment of the Revolving Line, the Company has requested that Atlas direct
      HSBC Private Bank (Suisse) SA, a Swiss business organization (the “Letter
      of Credit Provider”),
      to
      issue an irrevocable, direct-pay letter of credit to the Bank substantially
      in
      the form of Exhibit
      A
      attached
      hereto (as the same may be amended from time to time, the “Letter
      of Credit”);
      and

     

    WHEREAS,
      Atlas is willing to direct the Letter of Credit Provider to issue the Letter
      of
      Credit, subject to the following terms and conditions.

    

    NOW,
      THEREFORE, in consideration of the foregoing premises and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto hereby agree as follows:

    

    ARTICLE
      I

    DEFINITIONS

    

    Section
      1.1 Defined
      Terms.
      The
      following terms when used herein shall have the following respective meanings
      (unless the context requires otherwise, words in the singular include the plural
      and words in the plural include the singular):

    

    “Accredited
      Investor”
means
      an “accredited investor” as defined in Rule 501(a) under the Securities
      Act, a copy of which definition is attached hereto as Exhibit
      B.

    

    “Agreement”
means
      this Reimbursement Agreement, as the same may be amended, modified, supplemented
      or restated from time to time.

    

    “Atlas”
has
      the
      meaning ascribed thereto in the first paragraph hereof.

    

    “Bank”
has
      the
      meaning ascribed thereto in the first Recital.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Business
      Day”
means
      any day on which The New York Stock Exchange is not closed.

    

    “Company”
has
      the
      meaning ascribed thereto in the first paragraph hereof.

    

    “Default
      Rate”
means
      a
      per annum interest rate of six percent (6%).

    

    “Letter
      of Credit”
has
      the
      meaning ascribed thereto in the second Recital.

    

    “Letter
      of Credit Provider”
has
      the
      meaning ascribed thereto in the second Recital.

    

    “Loan
      Agreement”
has
      the
      meaning ascribed thereto in the first Recital.

    

    “Person”
means
      an individual, a corporation, a partnership, a limited liability company, an
      association, a trust or any other entity or organization, including a government
      or political subdivision or an agency or instrumentality thereof.

    

    “Revolving
      Line”
has
      the
      meaning ascribed thereto in the first Recital.

    

    “Schedule
      of Exceptions”
has
      the
      meaning ascribed thereto in Article III.

    

    “Securities
      Act”
has
      the
      meaning ascribed thereto in Section 3.4.

    

    “Shares”
has
      the
      meaning ascribed thereto in Section 3.1.

    

    ARTICLE
      II

    LETTER
      OF
      CREDIT 

    

    Section
      2.1 Agreement
      to Issue Letter of Credit.

     

    (a) Atlas
      shall direct the Letter of Credit Provider to issue the Letter of Credit on
      the
      date of this Agreement. The Letter of Credit shall be issued in an amount equal
      to $1,300,000.
      The term
      of the Letter of Credit shall end one year from the date of the issuance of
      the
      Letter of Credit. 

     

    (b) So
      long
      as there is no continuing default on the date of the expiration of the Letter
      of
      Credit described in Section 2.1(a), Atlas shall direct the Letter of Credit
      Provider to issue a replacement Letter of Credit for an equal amount for a
      term
      of one year from the date of the issuance thereof.

     

    Section
      2.2 Reimbursement
      of Drawings under Letter of Credit.

     

    (a) The
      Company hereby agrees to pay to Atlas within thirty (30) Business Days following
      the Business Day any amount is drawn and paid under any Letter of Credit a
      sum
      equal to the amount so drawn together with interest at half of the Default
      Rate.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b) If
      the
      Company fails to pay to Atlas any amount when due under subsection (a) above,
      interest shall accrue on any and all such amounts at the Default Rate (in the
      case of interest on interest, to the maximum extent permitted by law),
      commencing the day after such amounts first became due until payment in full,
      and the Company hereby agrees to pay such accrued interest to Atlas upon
      demand.
      All
      interest hereunder shall be computed on the basis of the actual number of days
      elapsed over a 360-day year and shall include the first day but exclude the
      last
      day of the relevant period.

     

    (c) The
      Company may pay any principal or interest amount due under this Section 2.2
      in
      U.S. Dollars or in common stock of the Company. In the event the Company elects
      to pay in common stock of the Company, such stock shall be deemed to be valued
      at $2.50 per share.

     

    Section
      2.3 Letter
      of Credit Fee.
      The
      Company hereby agrees to pay to Atlas on the date of issuance of any Letter
      of
      Credit a commitment fee in an amount equal to the product of one tenth of one
      percent and the amount of the Letter of Credit.

     

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

    

    Subject
      to the exceptions and qualifications set forth on the Schedule of Exceptions
      attached hereto and incorporated by reference herein (the “Schedule
      of Exceptions”),
      the
      Company hereby represents and warrants to Atlas as follows:

    

    Section
      3.1 Organization
      and Good Standing; Power and Authority; Qualifications.
      The
      Company (i) is a corporation duly organized, validly existing and in good
      standing under the laws of Delaware and (ii) has all requisite corporate power
      and authority to own, lease and operate its properties and to carry on its
      business as presently conducted and as proposed to be conducted. The Company
      has
      all requisite legal and corporate power to execute and deliver this Agreement
      and to issue the shares of capital stock that may be issuable hereunder
      (collectively, the “Shares”),
      and
      to carry out and perform its other obligations under the terms of the Agreement.
      The Company is qualified to transact business as a foreign corporation in,
      and
      is in good standing under the laws of, all of the jurisdictions wherein the
      character of the property owned or leased or the nature of the activities
      conducted by it makes such qualification necessary, except jurisdictions in
      which the failure to be so qualified would not have a material adverse effect
      on
      the condition (financial or otherwise), results of operations, business, assets
      or prospects of the Company.

    

    Section
      3.2 Authorization.
      All
      corporate action on the part of the Company, its officers, directors and
      stockholders necessary for the authorization, execution and delivery of this
      Agreement, the performance of all obligations of the Company hereunder and
      thereunder and the authorization, issuance and delivery of the Shares has been
      taken or will be taken, and the Agreement, when executed and delivered by the
      Company, shall constitute valid and legally binding obligations of the Company,
      enforceable against the Company in accordance with their respective terms except
      (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
      fraudulent conveyance, and other laws of general application affecting
      enforcement of creditors’ rights generally, and (ii) as limited by laws relating
      to the availability of specific performance, injunctive relief, or other
      equitable remedies. The Shares will not be subject to any preemptive rights
      or
      rights of first refusal that have not been properly waived or complied
      with.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    Section
      3.3 Capitalization.
      The
      Shares which may be issued pursuant to Section 2.2(c) above shall be duly
      authorized, fully paid and are nonassessable and have been issued in compliance
      with all applicable federal, foreign, and state securities laws at the time
      of
      the issuance. 

    

    Section
      3.4 Consents.
      Except
      as set forth on the Schedule of Exceptions, no permit, consent, approval, order
      or authorization of, or registration, qualification, designation, declaration
      or
      filing with, any Person on the part of the Company is required in connection
      with the Company’s valid execution, delivery or performance of this Agreement,
      the consummation of the transactions contemplated by this Agreement or the
      offer, sale or issuance of the Shares except for filings pursuant to applicable
      state securities laws and Regulation D of the Securities Act of 1933, as amended
      (the “Securities
      Act”),
      which
      will be timely filed within the applicable periods therefor.

    

    Section
      3.5 Financial
      Statements.
      The
      Company’s financial statements, including the Shares thereto, contained in the
      Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006 have
      been prepared in accordance with generally accepted accounting principles
      applied on a consistent basis throughout the periods covered thereby, except
      as
      otherwise noted therein, and fairly present the consolidated financial condition
      and results of operations of the Company and its consolidated subsidiaries,
      on
      the bases therein stated, as of the respective dates thereof, and for the
      respective periods covered thereby and include, in the case of unaudited
      financial statements, all material adjustments and accruals consistent with
      those included in the audited financial statements.

    

    ARTICLE
      IV

    REPRESENTATIONS
      AND WARRANTIES OF ATLAS

    

    Atlas
      represents and warrants to the Company as of the date hereof as
      follows:

    

    Section
      4.1 Authorization.
      Atlas has the full legal right, power, capacity and authority to enter into
      this
      Agreement and the transactions contemplated hereby and to perform its
      obligations pursuant to the terms of this Agreement. This Agreement constitutes
      Atlas’s valid and legally binding obligation, enforceable in accordance with its
      terms, except as limited by (i) applicable bankruptcy, insolvency, receivership,
      reorganization, moratorium, fraudulent conveyance and other laws of general
      application affecting enforcement of creditors’ rights generally, and (ii)
      general principles of equity, the application of which may deny Atlas the right
      to specific performance, injunctive relief or other equitable
      remedies.

    

    Section
      4.2 Public
      Information. Atlas has carefully reviewed all current public information
      regarding the Company, including financial information and risk factors, and
      fully understands the risks associated with investment in the
      Company.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    Section
      4.3 Sophistication;
      Not Formed for the Specific Purpose of Acquisition; Acknowledgement of
      Risks. Atlas is experienced in evaluating and investing in private placement
      transactions of securities of technology companies such as the Company,
      acknowledges that it is able to fend for itself, can bear the economic risk
      of
      its investment, has such knowledge and experience in financial and business
      matters that it is capable of evaluating the merits and risks of this Agreement
      and an investment in the Shares, and is prepared to hold the Shares for an
      indefinite period of time. Atlas also represents it has not been organized
      for
      the purpose of acquiring the Shares. Atlas recognizes that its purchase of
      the
      Shares involves substantial risks, and has taken full cognizance of and
      understands such risks. Atlas also acknowledges and is aware that the Shares
      are
      a speculative investment involving a high risk of loss by it of its entire
      investment.

    

    Section
      4.4 Accredited
      Investor. Atlas is an Accredited Investor.

    

    Section
      4.5 Purchase
      Entirely for Own Account. Atlas is acquiring the Shares for its own account,
      for investment and not with a view to, or for resale in connection with, any
      distribution thereof within the meaning of the Securities Act. Atlas has no
      present intention of selling, transferring or distributing the Shares. Atlas
      does not have any contract, undertaking, agreement or arrangement with any
      Person to sell, transfer or grant participation to such Person or to any third
      party with respect to the Shares other than as set forth in this Agreement.
      Atlas understands that the Shares being transferred to it under this Agreement
      have not been registered under the Securities Act by reason of a specific
      exemption from the registration provisions of the Securities Act, which depend
      upon, among other things, the bona fide nature of the investment intent as
      expressed herein.

    

    Section
      4.6 No
      Registration under the Securities Act. Atlas understands that the Shares are
      not registered under the Securities Act on the grounds that the sale provided
      for in this Agreement and the issuance of the Shares hereunder is being made
      in
      reliance upon an exemption from the registration requirements of the Securities
      Act pursuant to Section 4 thereof and that the Company’s reliance on such
      exemption is predicated on Atlas’s representations as set forth in this
      Agreement.

    

    Section
      4.7 Restricted
      Securities. Atlas acknowledges that the Shares have not been registered
      under the Securities Act and that the Shares may not be sold, assigned, pledged,
      hypothecated or transferred, unless there exists an effective registration
      statement therefor under the Securities Act and all applicable state securities
      laws or the Company has received an opinion of counsel, reasonably acceptable
      to
      counsel for the Company, or other reasonable assurances, that such sale,
      assignment, pledge, hypothecation or transfer is exempt from registration.
      Atlas
      understands that in the absence of an effective registration statement covering
      the Shares, an exemption from the Securities Act and all applicable state
      securities laws, the Shares must be held indefinitely. In particular, Atlas
      is
      aware that the Shares may not be sold pursuant to Rule 144 promulgated under
      the
      Securities Act unless all conditions of Rule 144 are met. Among the conditions
      for use of Rule 144 may be the availability of current and adequate information
      to the public about the Company. Notwithstanding the foregoing, no opinion
      of
      counsel shall be required by the Company in connection with the transfer of
      the
      Shares to an entity that is a direct or indirect wholly-owned subsidiary of
      Atlas.

    

    Section
      4.8 Legends.
      Atlas understands that the Shares and any securities issued in respect of or
      exchange for the Shares, shall, in addition to any legends required elsewhere,
      bear the following legends:

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (a)
      THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES LAW AND MAY
      NOT BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR TRANSFERRED UNLESS THERE EXISTS
      AN EFFECTIVE REGISTRATION STATEMENT THEREFOR UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED, AND ALL APPLICABLE STATE SECURITIES LAWS OR THE ISSUER HEREOF HAS
      RECEIVED AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO COUNSEL OF THE
      ISSUER, THAT SUCH SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR TRANSFER IS EXEMPT
      FROM REGISTRATION.

    

    (b) Any
      legend required by any applicable state securities law or by any other agreement
      to which the holder of the certificate is a party or by which the holder of
      the
      certificate thereof is bound.

    

    Section
      4.9 Disclosure
      of Information.
      Atlas
      has received all information that it considers necessary or appropriate for
      deciding whether to enter this Agreement and purchase the Shares. Atlas has
      had
      an opportunity to ask questions and receive answers from the Company’s
      management regarding the Shares and the business, properties, prospects and
      financial conditions of the Company and to obtain additional information from
      the Company (to the extent that the Company possessed such information or could
      acquire it without reasonable effort or expense) necessary to verify the
      accuracy of any information furnished to Atlas or to which Atlas had
      access.

    

    ARTICLE
      V

    MISCELLANEOUS

    

    Section
      5.1  Notices.
      All
      demands, notices, approvals, consents, requests and other communications
      hereunder shall be in writing and shall be deemed to have been given when the
      writing is delivered, if given or delivered by hand, overnight delivery service
      or facsimile transmitter (with confirmed receipt), or three (3) Business Days
      after being mailed, if mailed by first class, registered or certified mail,
      postage prepaid, to the address or telecopy number set forth below:

    

    
      	
              If
                to the Company:

            	
              Smart
                Online, Inc.

            
	 	
              2530
                Meridian Parkway, 2nd Floor

            
	 	
              Durham,
                North Carolina 27713

            
	 	
              Attention:
                Dennis Michael Nouri

            
	 	
              Fax
                No.: (919) 765-5020

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    
      	
              with
                a copy to counsel:

            	
              Smith,
                Anderson, Blount, Dorsett,

            
	 	
              Mitchell
                & Jernigan, L.L.P.

            
	 	
              P.
                O. Box 2611

            
	 	
              Raleigh,
                North Carolina 27602-2611

            
	 	
              Attention:
                Margaret Rosenfeld, Esq.

            
	 	
              Fax
                No.: (919) 821-6800

            
	 	 
	
              If
                to the Atlas:

            	
              Atlas
                Capital SA

            
	 	
              116
                Rue Du Rhone

            
	 	
              Geneva,
                Switzerland CH-1204

            
	 	
              Attention:
                Avy Lugassy

            
	 	
              Fax
                No.: +011 41 2278 65855

            

    

    

    The
      Company or Atlas may, by notice given hereunder, designate any further or
      different addresses or telecopy numbers to which subsequent demands, notices,
      approvals, consents, requests or other communications shall be sent or Persons
      to whose attention the same shall be directed.

    

    Section
      5.2 Controlling
      Law.
      This
      Agreement has been executed, delivered and accepted at, and shall be deemed
      to
      have been made in, the State of Delaware and shall be interpreted in accordance
      with the internal laws (as opposed to conflicts of laws provisions) of the
      State
      of Delaware, without regard to principles of conflicts of laws.

    

    Section
      5.3 Assignment.
      Without
      the prior written consent of the other party, neither party may sell, assign
      or
      transfer this Agreement or any portion hereof, including without limitation,
      either party’s rights, title, interests, remedies, powers and duties hereunder
      or thereunder.

    

    Section
      5.4 Amendment.
      This
      Agreement can be amended or modified only by an instrument in writing signed
      by
      the Company and Atlas. 

    

    Section
      5.5  Severability.
      In the
      event that any provision of this Agreement shall be determined to be invalid
      or
      unenforceable by any court of competent jurisdiction, such determination shall
      not invalidate or render unenforceable any other provision hereof.

    

    Section
      5.6 Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and understanding between the parties
      hereto and supersedes all prior agreements and understandings of such parties,
      verbal or written, relating to the subject matter hereof. This Agreement
      represents the final agreement between the parties and may not be contradicted
      by prior, contemporaneous or subsequent oral agreements of the parties. There
      are no unwritten oral agreements between the parties.

    

    Section
      5.7 Counterparts.
      This
      Agreement may be executed in several counterparts, each of which shall be an
      original and all of which together shall constitute but one and the same
      instrument.

     

    [Signature
      Page Follows]

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    [Signature
      Page to the Reimbursement Agreement]

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed and delivered as of the date first above written.

    

    
      	
              SMART
                ONLINE, INC.

            
	 	 
	
              By:
                

            	
              /s/
                Michael Nouri

            
	 	
              Michael
                Nouri

            
	 	
              President
                and Chief Executive Officer

            
	 	 
	 	 
	
              ATLAS
                CAPITAL SA

            
	 	 
	
              By:  

            	
              /s/
                Avy Lugassy

            
	
              Name:

            	 
	
              Title:

            	 

    

     

    
      
        
        

      

      
        8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]