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  <TITLE> Smart Online, Inc. (Form: 8-K) </TITLE>
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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	May 19, 2006
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  	Smart Online, Inc.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Delaware
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  	001-32634
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  	95-4439334
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
  	(I.R.S. Employer
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	&nbsp;&nbsp;
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  	2530 Meridian Parkway, 2nd Floor, Durham, North Carolina
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  	27713
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  _________________________________<BR>
  	(Address of principal executive offices)
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  	&nbsp;
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  ___________<BR>
  	(Zip Code)
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  	Registrant&#146;s telephone number, including area code:
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  	919-765-5000
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><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:</FONT>
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  <P><FONT SIZE="2">
  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  <B>
  	Item 8.01 Other Events.
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  An Amendment to the ASP Agreement between Union Bank of California, N.A. and Smart Online was signed on May 19, 2006, which Amendment will be effective on June 16, 2006.  The Amendment renews the term of the Agreement between the parties for an additional one year term, commencing on June 16, 2006.  Union Bank of California has sole discretion to renew the Agreement for successive one year periods.  The original term of the Agreement was for two years, commencing on June 16, 2004.  <br><br>Pursuant to the Amendment, Union Bank of California will continue to pay Smart Online a monthly maintenance and hosting fee during the one year renewal term.  Gross revenue for the "Private Label Syndication Website," developed by Smart Online, shall be split between Union Bank of California and Smart Online, and paid on a quarterly basis.    <br><br>We enter into agreements with our integration and syndication partners in the ordinary course of our business.  It is not our policy to report on Form 8-K ordinary course of business contracts, or their renewals or terminations.  However, in light of recent events related to the suspension of trading of our securities, we have determined to report this contract renewal.  We, however, disclaim any duty to report renewals of ordinary course of business contracts in the future.  Consequently, investors should not interpret the absence of such reports in the future as any indication that renewals have not occurred.
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  	SIGNATURES
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  	Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
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  	Smart Online, Inc.
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  	&nbsp;&nbsp;
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  <I>
  	May 23, 2006
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  <I>
  	By:
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  <I>
  	/s/ Michael Nouri
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  <BR>
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  	&nbsp;
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  <I>
  	Name: Michael Nouri
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  <I>
  	Title: President and Chief Executive Officer
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_12701.htm", "description": "LIVE FILING", "secsgml_size_bytes": 9662}]
metadata_filer: {"company-data": {"conformed-name": "SMART ONLINE INC", "cik": "0001113513", "assigned-sic": "7372", "irs-number": "954439334"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32634", "film-number": "06861167"}, "business-address": {"street1": "2530 MERIDIAN PARKWAY", "city": "DURHAM", "state": "NC", "zip": "27713", "phone": "919-806-4521"}, "mail-address": {"street1": "P.O. BOX 12794", "city": "RESEARCH TRIANGLE PARK", "state": "NC", "zip": "27709"}}
text: Smart Online, Inc. (Form: 8-K)
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of Earliest Event Reported):
  May 19, 2006
  Smart Online, Inc.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Delaware
  001-32634
  95-4439334
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  2530 Meridian Parkway, 2nd Floor, Durham, North Carolina
  27713
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  919-765-5000
  Not Applicable
  ______________________________________________
  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:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 8.01 Other Events.
  An Amendment to the ASP Agreement between Union Bank of California, N.A. and Smart Online was signed on May 19, 2006, which Amendment will be effective on June 16, 2006.  The Amendment renews the term of the Agreement between the parties for an additional one year term, commencing on June 16, 2006.  Union Bank of California has sole discretion to renew the Agreement for successive one year periods.  The original term of the Agreement was for two years, commencing on June 16, 2004.
  Pursuant to the Amendment, Union Bank of California will continue to pay Smart Online a monthly maintenance and hosting fee during the one year renewal term.  Gross revenue for the "Private Label Syndication Website," developed by Smart Online, shall be split between Union Bank of California and Smart Online, and paid on a quarterly basis.
  We enter into agreements with our integration and syndication partners in the ordinary course of our business.  It is not our policy to report on Form 8-K ordinary course of business contracts, or their renewals or terminations.  However, in light of recent events related to the suspension of trading of our securities, we have determined to report this contract renewal.  We, however, disclaim any duty to report renewals of ordinary course of business contracts in the future.  Consequently, investors should not interpret the absence of such reports in the future as any indication that renewals have not occurred.
  Top of the Form
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
  Smart Online, Inc.
  May 23, 2006
  By:
  /s/ Michael Nouri
  Name: Michael Nouri
  Title: President and Chief Executive Officer