Document:

EXHIBIT 10.10

                             2004 STOCK OPTION PLAN
                                       OF
                             SMARTSERV ONLINE, INC.

      1. Purpose. The purpose of this Plan is: (i) to provide Employees and
Non-Employee Directors of the Company and its Subsidiaries an opportunity to
acquire a larger personal financial interest in the Company through common stock
ownership, (ii) to provide an incentive for Employees and Non-Employee Directors
to continue to promote the best long term interests of the Company and its
shareholders by creating incremental shareholder value and enhancing its
long-term performance, and (iii) to provide an incentive for Employees and
Non-Employee Directors to associate or remain associated with the Company. Some
or all of the Stock Options granted to Employees (but not Non-Employee
Directors) pursuant to this Plan may, but need not, be structured to qualify as
Incentive Stock Options.

      2. Definitions. The following definitions shall apply for purposes of this
Plan and any agreement relating to a Stock Option:

            (a) "Board" shall mean the Board of Directors of the Company.

            (b) "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time, and the regulations promulgated and the rulings issued
thereunder.

            (c) "Committee" shall mean the committee of Board members appointed
to administer the Plan pursuant to Section 3(a), below, or, if applicable
pursuant to Section 3(a), the Board. In cases where the Board administers the
Plan, references to the Committee shall be deemed to refer to the Board, except
that the Board shall not be subject to the requirements applicable to the
Committee under Section 3(a).

            (d) "Common Stock" shall mean shares of common stock, $.01 par
value, issued by SmartServ Online, Inc. or such class of shares to which such
shares are converted hereafter.

            (e) "Company" shall mean SmartServ Online, Inc.

            (f) "Effective Date" shall mean the date on which this Plan, as
hereby amended and restated, is approved by the Board.

            (g) "Employee" shall mean an individual who is an employee of the
Company or a Subsidiary under general common law principles. An individual who
is an "Employee," as so defined, may also be a member of the Board or the Board
of Directors of a Subsidiary (but not a Non-Employee Director).

            (h) "Incentive Stock Option" or "ISO" shall mean a Stock Option that
qualifies under section 422 of the Code.

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            (i) "Non-Employee Director" shall mean a member of the Board or the
board of directors of a Subsidiary who is not an Employee.

            (j) "Non-Qualified Option" shall mean a Stock Option granted under
this Plan that is not an Incentive Stock Option.

            (k) "Plan" shall mean the 2004 Stock Option Plan of SmartServ
Online, Inc., as evidenced hereby, or as amended from time to time.

            (l) "Stock Option" shall mean an option issued pursuant to this
Plan.

            (m) "Subsidiary" shall mean any corporation (other than the Company)
in an unbroken chain of corporations beginning with the Company if, at the time
of the granting of a Stock Option, each of the corporations other than the last
corporation in the chain owns stock possessing 50 percent or more of the total
combined voting power of all classes of stock in one of the other corporations
in the chain.

      3. Administration.

            (a) Committee; Board Approval. The Plan shall be administered by a
Committee appointed by, and which serves at the discretion of, the Board. The
Board may designate the Company's Compensation Committee as the "Committee"
hereunder provided the Compensation Committee meets the requirements of this
Section. Notwithstanding any other provision of the Plan, at all times one of
the following two provisions shall apply: (i) the Committee shall consist of at
least two individuals and each member of the Committee shall qualify as a
"non-employee director," within the meaning of Rule 16b-3(b)(3) under the
Securities Exchange Act of 1934, as amended, and the regulations promulgated
thereunder; or (ii) (A) at least two members of the Committee must qualify as
such non-employee directors, (B) any member of the Committee who does not so
qualify may not participate in any action of the Committee with respect to the
grant of any Stock Option under the Plan, and (C) the Plan shall be deemed to be
administered by the full Board, the actions of the Committee under the Plan
shall be deemed merely advisory to the Board, and the Board's approval shall be
required for all actions of the Committee under the Plan, including without
limitation the grant of each Stock Option. To the extent necessary or desirable
(as may be determined by the Board from time to time) each member of the
Committee shall also qualify as an "outside director" under Section 162(m) of
the Code and the regulations issued thereunder. The members of the Committee
shall meet such additional criteria as may be necessary or desirable to comply
with regulatory or stock exchange rules or exemptions. The Company shall pay all
reasonable expenses of the Committee.

            (b) Powers. Within the limits of the express provisions of the Plan,
the Committee shall determine: (i) the Employees and Non-Employee Directors to
whom Stock Options hereunder shall be granted, (ii) the time or times at which
such Stock Options shall be granted, (iii) the amount and form of any Stock
Options, including, but not limited to, whether any Stock Option granted to an
Employee is structured to be an ISO, and (iv) the limitations, restrictions and
conditions applicable to any Stock Option granted to any Employee or
Non-Employee Director, including, but not limited to, whether the right to
exercise any Stock Option, in whole or in part, will be subject to a vesting
schedule. In making such determinations, the Board may take into account the
nature of the services rendered by such Employees, or Non-

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<PAGE>

Employee Directors or classes thereof, their present and potential contributions
to the Company's success and such other factors as the Board in its discretion
shall deem relevant.

            (c) Interpretations. Subject to the express provisions of the Plan,
the Committee may interpret the Plan, prescribe, amend and rescind rules and
regulations relating to it, determine the terms and provisions of the respective
Stock Options and make all other determinations it deems necessary or advisable
for the administration of the Plan.

            (d) Determinations. The determinations of the Committee on all
matters regarding the Plan shall be conclusive.

            (e) Nonuniform Determinations. The Committee's determinations under
the Plan including without limitation, selection of the individuals to receive
Stock Options, the terms and provisions of Stock Options thereof and the
agreements evidencing the same, need not be uniform and may be made by it
selectively among individuals who receive or are eligible to receive Stock
Options under the Plan, whether or not such individuals are similarly situated.

      4. Maximum Limitations. The aggregate number of shares of Common Stock
available for grants of Stock Options under the Plan is 200,000 shares, subject
to adjustment pursuant to Section 8, below. Shares of Common Stock issued
pursuant to the Plan may be either authorized but unissued shares or shares now
or hereafter held in the treasury of the Company. In the event that, prior to
the end of the period during which Stock Options may be granted under the Plan,
any Stock Option under the Plan expires unexercised or is terminated,
surrendered or canceled without being exercised, in whole or in part, for any
reason, the number of shares theretofore subject to such Stock Option, or the
unexercised, terminated, forfeited or unearned portion thereof, shall be added
to the remaining number of shares of Common Stock available for grant as a Stock
Option under the Plan, including a grant to a former holder of such Stock
Option, upon such terms and conditions as the Committee shall determine, which
terms may be more or less favorable than those applicable to such former Stock
Option.

      5. Conditions of Options. Any Stock Option granted pursuant to this Plan
shall, by its terms, be subject to the following limitations and conditions:

            (a) Option Price. The option price for each Stock Option shall be
the fair market value of the number of shares of Common Stock subject thereto at
the time of the grant thereof.

            (b) Term of Option. No Stock Option shall be exercisable after the
date that is 10 years from the date it is granted.

            (c) Time of Grants. No Stock Option shall be granted before the
Effective Date or more than 10 years after the Effective Date.

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<PAGE>

      6. Exercise of Stock Options.

            (a) In General. Subject to Section 5, above, Stock Options shall be
subject to such terms and conditions, shall be exercisable at such time or
times, and shall be evidenced by such form of written option agreement between
the optionee and the Company as the Committee shall determine; provided that
such determinations are not inconsistent with the other provisions of the Plan,
and with Section 422 of the Code in the case of an ISO.

            (b) Manner of Exercise of Options and Payment for Common Stock.
Stock Options may be exercised by an optionee by giving written notice to the
Corporate Secretary of the Company stating the number of shares of Common Stock
with respect to which the Stock Option is being exercised and tendering payment
therefor. At the time that a Stock Option granted under the Plan, or any part
thereof, is exercised, payment for the Common Stock issuable thereupon shall be
made in full in cash or by certified check or, if permitted by the terms of the
Stock Option, in shares of Common Stock of the Company (the number of such
shares paid for each share subject to the Stock Option, or part thereof, being
exercised shall be determined by dividing the option price by the fair market
value per share of the Common Stock on the date of exercise). In addition, if
the terms of a Stock Option so provide, the optionee may pay the exercise price
by directing the Company to withhold from those shares of Common Stock that
would otherwise be received upon the exercise of the Stock Option that number of
shares of Common Stock having an aggregate fair market value as of the date of
exercise equal to the Stock Option's exercise price, or the applicable portion
of the Stock Option's exercise price if the Stock Option is not exercised in
full. The shares of Common Stock so withheld shall not be deemed to have been
issued for purposes of the aggregate-share limitation set forth in Section 4,
above. As soon as reasonably possible following such exercise, a certificate
representing shares of Common Stock purchased, registered in the name of the
optionee, shall be delivered to the optionee.

            (c) Exercise During First Six Months. A Stock Option may be
exercised during the first six months of its term only to the extent that its
exercise would not violate the provisions of Section 16 of the Securities and
Exchange Act of 1934 and the applicable regulations thereunder, as amended.

      7. Transferability. No Stock Option may be transferred, assigned, pledged
or hypothecated (whether by operation of law or otherwise), except as provided
by will or the applicable laws of descent or distribution, or subject to
execution, attachment or similar process. Any attempted assignment, transfer,
pledge, hypothecation or other disposition of a Stock Option, or levy of
attachment or similar process upon the Stock Option not specifically permitted
herein shall be null and void and without effect. A Stock Option may be
exercised only by an Employee or Non-Employee Director during his or her
lifetime, or by his or her estate or the person who acquires the right to
exercise such Stock Option upon his or her death by bequest or inheritance, to
the extent permitted by the terms of the Stock Option.

      8. Adjustment Provisions. The aggregate number of shares of Common Stock
with respect to which Stock Options may be granted, the aggregate number of
shares of Common Stock subject to each outstanding Stock Option, and the option
price per share of each such

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<PAGE>

Stock Option, may all be appropriately adjusted as the Committee shall determine
for any increase or decrease in the number of shares of issued Common Stock
resulting from a division or consolidation of shares, whether through
reorganization, recapitalization, stock split, stock distribution or combination
of shares, or the payment of a share dividend or other increase or decrease in
the number of such shares outstanding effected without receipt of consideration
by the Company.

      9. Dissolution, Merger and Consolidation. Upon the dissolution or
liquidation of the Company, or upon a merger or consolidation of the Company in
which the Company is not the surviving corporation, each Stock Option granted
hereunder shall expire as of the effective date of such transaction; provided,
however, that the Committee shall give at least 30 days' prior written notice of
such event to each optionee during which time he or she shall have a right to
exercise his or her wholly or partially unexercised Stock Option (without regard
to installment exercise limitations, if any) and, subject to prior expiration
pursuant to the terms thereof, each Stock Option shall be exercisable after
receipt of such written notice and prior to the effective date of such
transaction; provided further, however, that upon a merger or consolidation of
the Company in which the Company is not the surviving corporation, in lieu of
such notice, each such Stock Option shall be converted to an option to acquire
shares of the surviving corporation, the number of which shall be based on the
relative values of the Common Stock and such surviving corporation's common
stock on the date of such merger or consolidation.

      10. Incentive Stock Options. Some or all of the Stock Options granted to
Employees pursuant to this Plan may be options which are intended to be ISOs.
Only those Stock Options which, by their terms, are expressly intended to
qualify as ISOs shall be considered as such. In addition to the other provisions
of this Plan, the provisions of this Section 10 apply to grants of ISOs
hereunder. In the event of a conflict between any provision of this Section 10
and provision of any other Section of this Plan, the provision of this Section
10 shall prevail.

            (a) Identity of Optionees. ISOs may be granted only to Employees
(and not Non-Employee Directors).

            (b) More-than-10% Shareholders. No Employee may receive an ISO under
the Plan if such Employee, at the time the Stock Option is granted, owns,
directly or indirectly within the meaning of Section 424(d) of the Code, stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company, or any subsidiary (as defined in Section 424(f) of the
Code) thereof, unless the option price for such ISO is at least 110% of the fair
market value of the Common Stock subject to such ISO on the date of grant and
such ISO is not exercisable after the date that is five years from the date such
Stock Option is granted.

            (c) Limitation on Amounts. The aggregate fair market value
(determined with respect to each ISO as of the date of grant) of the capital
stock with respect to which ISOs are exercisable for the first time by an
Employee during any calendar year (under this Plan or any other plan of the
Company or any Subsidiary) shall not exceed $100,000.

            (d) Shareholder Approval. No Stock Option shall qualify as an ISO
unless within 12 months of the Effective Date, this Plan has been approved by
shareholders of the

                                      -5-
<PAGE>

Company in accordance with all applicable provisions of the Company's corporate
charter, bylaws and applicable State law prescribing the method and degree of
shareholder approval required for the issuance of corporate stock or options. If
the applicable State law does not prescribe a method and degree of shareholder
approval, the Plan must be approved by a majority of the votes cast at a duly
convened meeting at which a quorum representing a majority of all outstanding
voting stock is, either in person or by proxy, present and voting on the Plan,
or by a method and degree that would be treated as adequate under applicable
State law in the case of an action requiring shareholder approval.

      11. Miscellaneous.

            (a) Legal and Other Requirements. The obligation of the Company to
sell and deliver Common Stock under the Plan shall be subject to all applicable
laws, regulations, rules and approvals, including, but not by way of limitation,
the effectiveness of a registration statement under the Securities Act of 1933
if deemed necessary or appropriate by the Company. Certificates for shares of
Common Stock issued hereunder may be legended as the Committee shall deem
appropriate.

            (b) No Obligation To Exercise Stock Options. The granting of a Stock
Option shall impose no obligation upon an optionee to exercise such Stock
Option.

            (c) Termination and Amendment of Plan. The Board, without further
action on the part of the shareholders of the Company, may from time to time
alter, amend or suspend the Plan, or may at any time terminate the Plan, except
that it may not, without the approval of the shareholders of the Company as
described in Section 10(d), above: (i) increase the total number of shares of
Common Stock available for grant under the Plan except as provided in Section 8,
above; (ii) modify the class of eligible Employees under the Plan; or (iii)
effect a change relating to an ISO granted hereunder that is inconsistent with
Section 422 of the Code. No action taken by the Board under this Section, either
with or without the approval of the shareholders of the Company, may materially
and adversely affect any outstanding Stock Option without the consent of the
holder thereof.

            (d) Application of Funds. The proceeds received by the Company from
the sale of Common Stock pursuant to Stock Options will be used for general
corporate purposes.

            (e) Withholding Taxes. Upon the exercise of any Stock Option, the
Company shall have the right to require the optionee to remit to the Company an
amount sufficient to satisfy all federal, state and local withholding tax
requirements (if any) then applicable prior to the delivery of any certificate
or certificates for shares of Common Stock. An optionee may elect to have the
Company withhold from those shares of Common Stock that would otherwise be
received upon the exercise of any Stock Option a number of shares having a fair
market value equal to the minimum (and not more than the minimum) statutory
amount necessary to satisfy the Company's applicable federal, state, local and
foreign income and employment tax withholding obligations in connection with the
exercise of the Stock Option. Upon the disposition of any Common Stock acquired
by the exercise of a Stock Option, the Company shall have the right to require
the optionee to remit to the Company an amount sufficient to satisfy all

                                      -6-
<PAGE>

federal, state and local withholding tax requirements (if any) then applicable
as a condition to the registration of the transfer of such Common Stock on its
books. Whenever under the Plan payments are to be made by the Company in cash or
by check, such payments shall be net of any amounts sufficient to satisfy all
federal, state and local withholding tax requirements.

            (f) Right To Terminate Employment or Service as a Director. Nothing
in the Plan or any agreement entered into pursuant to the Plan shall confer upon
any Employee or Non-Employee Director the right to continue in the employment or
other service of the Company or any Subsidiary, or affect any right which the
Company or any Subsidiary may have to terminate the employment or service of
such Employee or Non-Employee Director.

            (g) Rights as a Shareholder. No optionee shall have any right as a
shareholder with respect to shares of Common Stock subject to a Stock Option
unless and until certificates for such shares are issued to him or her.

            (h) Leaves of Absence and Disability. The Committee shall be
entitled to make such rules, regulations and determinations as it deems
appropriate under the Plan in respect of any leave of absence taken by or
disability of any Employee or Non-Employee Director. Without limiting the
generality of the foregoing, the Board shall be entitled to determine: (i)
whether or not any such leave of absence shall constitute a termination of
employment within the meaning of the Plan, and (ii) the impact, if any, of any
such leave of absence on Stock Options granted under the Plan theretofore made
to any Employee or Non- Employee Director who takes such leave of absence.

            (i) Fair Market Value. Whenever the fair market value of Common
Stock is to be determined under the Plan as of a given date, such fair market
value shall be: (i) if the Common Stock is traded on the over-the-counter
market, the average of the mean between the bid and the asked price for the
Common Stock at the close of trading for the trading day immediately preceding
such given date; (ii) if the Common Stock is listed on a national securities
exchange, the average of the closing prices of the Common Stock on the composite
tape for the trading day immediately preceding such given date; and (iii) if the
Common Stock is neither traded on the over-the-counter market nor listed on a
national securities exchange, such value as the Committee, in good faith, shall
determine. Notwithstanding any provision of the Plan to the contrary, no
determination made with respect to the fair market value of Common Stock subject
to an ISO shall be inconsistent with Section 422 of the Code.

            (j) Notices. Every direction, revocation or notice authorized or
required by the Plan shall be deemed delivered to the Company on the date it is
personally delivered to the Corporate Secretary of the Company at its principal
executive offices or three business days after it is sent by registered or
certified mail, postage prepaid, addressed to the Corporate Secretary at such
offices, and shall be deemed delivered to an optionee on the date it is
personally delivered to him or her or three business days after it is sent by
registered or certified mail, postage prepaid, addressed to him or her at the
last address shown for him or her on the records of the Company.

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<PAGE>

            (k) Applicable Law. All questions pertaining to the validity,
construction and administration of the Plan and Stock Options granted hereunder
shall be determined in conformity with the laws of the Commonwealth of
Pennsylvania, to the extent not superseded by federal law.

            (l) Elimination of Fractional Shares. If under any provision of the
Plan which requires a computation of the number of shares of Common Stock
subject to a Stock Option, the number so computed is not a whole number of
shares of Common Stock, such number of shares of Common Stock shall be rounded
down to the next whole number.

                                      -8-EXHIBIT 10.41

THESE  SECURITIES  HAVE NOT BEEN  REGISTERED  WITH THE  SECURITIES  AND EXCHANGE
COMMISSION  OR THE  SECURITIES  COMMISSION  OF ANY  STATE  IN  RELIANCE  UPON AN
EXEMPTION  FROM  REGISTRATION  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND, ACCORDINGLY,  MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE  REGISTRATION  STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN  AVAILABLE   EXEMPTION  FROM,  OR  IN  A  TRANSACTION  NOT  SUBJECT  TO,  THE
REGISTRATION   REQUIREMENTS  OF  THE  SECURITIES  ACT  AND  IN  ACCORDANCE  WITH
APPLICABLE  STATE  SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE  TRANSFEROR  TO SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY
ACCEPTABLE TO THE COMPANY.

                          COMMON STOCK PURCHASE WARRANT
W3-

                To Purchase __________ Shares of Common Stock of

                             SmartServ Online, Inc.

      THIS COMMON STOCK PURCHASE  WARRANT  CERTIFIES  that, for value  received,
__________________________  (the  "Holder"),  is  entitled,  upon the  terms and
subject to the limitations on exercise and the conditions hereinafter set forth,
at any time on or after December 1, 2004 (the "Initial Exercise Date") and on or
prior to the close of business on the second anniversary of the Initial Exercise
Date (the "Termination Date") but not thereafter,  to subscribe for and purchase
from SmartServ  Online,  Inc., a Delaware  corporation  (the  "Company"),  up to
_________  shares (the  "Warrant  Shares") of Common  Stock,  par value $.01 per
share, of the Company (the "Common  Stock").  The purchase price of one share of
Common Stock (the "Exercise Price") under this Warrant shall be $2.50 subject to
adjustment  hereunder.  The Exercise  Price and the number of Warrant Shares for
which the  Warrant is  exercisable  shall be subject to  adjustment  as provided
herein.

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<PAGE>

      1.  Title  to  Warrant.  Prior to the  Termination  Date  and  subject  to
compliance with applicable laws and Section 7 of this Warrant,  this Warrant and
all rights  hereunder  are  transferable,  in whole or in part, at the office or
agency of the  Company by the Holder in person or by duly  authorized  attorney,
upon surrender of this Warrant  together with the Assignment Form annexed hereto
properly  endorsed.  The transferee shall sign an investment  letter in form and
substance reasonably satisfactory to the Company.

      2.  Authorization of Shares. The Company covenants that all Warrant Shares
which may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights  represented by this Warrant,
be duly authorized,  validly issued,  fully paid and nonassessable and free from
all taxes,  liens and charges in respect of the issue thereof  (other than taxes
in respect of any transfer occurring contemporaneously with such issue).

      3. Exercise of Warrant.

            (a) Except as provided in Section 4 herein, exercise of the purchase
rights  represented by this Warrant may be made at any time or times on or after
the Initial Exercise Date and on or before the Termination Date by the surrender
of this Warrant and the Notice of Exercise Form annexed hereto duly executed, at
the office of the Company  (or such other  office or agency of the Company as it
may  designate by notice in writing to the  registered  Holder at the address of
such  Holder  appearing  on the books of the  Company)  and upon  payment of the
Exercise  Price of the shares  thereby  purchased by wire  transfer or cashier's
check drawn on a United States bank or by means of a cashless  exercise pursuant
to Section 3(c),  the Holder shall be entitled to receive a certificate  for the
number of Warrant Shares so purchased. Certificates for Warrant Shares purchased
hereunder  shall be delivered  to the Holder  within five (5) trading days after
the date on which this  Warrant  shall have been  exercised as  aforesaid.  This
Warrant  shall  be  deemed  to have  been  exercised  and  such  certificate  or
certificates shall be deemed to have been issued, and Holder or any other person
so  designated  to be named  therein  shall be deemed to have become a holder of
record of such  shares for all  purposes,  as of the date the  Warrant  has been
exercised by payment to the Company of the Exercise Price and all taxes required
to be paid by the Holder, if any, pursuant to Section 5 prior to the issuance of
such shares, have been paid.

            (b) If this Warrant shall have been  exercised in part,  the Company
shall, at the time of delivery of the  certificate or certificates  representing
Warrant Shares,  deliver to Holder a new Warrant evidencing the rights of Holder
to purchase the unpurchased Warrant Shares called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant.

      4.  No  Fractional   Shares  or  Scrip.  No  fractional  shares  or  scrip
representing  fractional  shares  shall  be  issued  upon the  exercise  of this
Warrant.  As to any fraction of a share which Holder would otherwise be entitled
to purchase  upon such  exercise,  the Company  shall pay a cash  adjustment  in
respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

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<PAGE>

      5.  Charges,  Taxes and  Expenses.  Issuance of  certificates  for Warrant
Shares shall be made without  charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such certificate,  all
of which taxes and expenses shall be paid by the Company,  and such certificates
shall be  issued  in the name of the  Holder  or in such name or names as may be
directed by the Holder;  provided,  however,  that in the event certificates for
Warrant  Shares are to be issued in a name  other  than the name of the  Holder,
this  Warrant  when  surrendered  for  exercise  shall  be  accompanied  by  the
Assignment Form attached hereto duly executed by the Holder; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

      6. Closing of Books.  The Company will not close its stockholder  books or
records in any  manner  which  prevents  the timely  exercise  of this  Warrant,
pursuant to the terms hereof.

      7. Transfer, Division and Combination.

            (a) Subject to compliance  with any applicable  securities  laws and
the  conditions  set forth in Sections 1 and 7(e)  hereof,  this Warrant and all
rights hereunder are  transferable,  in whole or in part, upon surrender of this
Warrant  at  the  principal  office  of the  Company,  together  with a  written
assignment  of this  Warrant  substantially  in the form  attached  hereto  duly
executed by the Holder or its agent or attorney and funds  sufficient to pay any
transfer  taxes payable upon the making of such  transfer.  Upon such  surrender
and, if required,  such  payment,  the Company  shall  execute and deliver a new
Warrant  or  Warrants  in the  name  of the  assignee  or  assignees  and in the
denomination or  denominations  specified in such instrument of assignment,  and
shall issue to the assignor a new Warrant evidencing the portion of this Warrant
not so assigned,  and this Warrant shall  promptly be cancelled.  A Warrant,  if
properly assigned,  may be exercised by a new holder for the purchase of Warrant
Shares without having a new Warrant issued.

            (b) This Warrant may be divided or combined with other Warrants upon
presentation  hereof at the  aforesaid  office of the Company,  together  with a
written notice  specifying the names and denominations in which new Warrants are
to be  issued,  signed  by the  Holder  or its  agent or  attorney.  Subject  to
compliance  with Section 7(a), as to any transfer  which may be involved in such
division or combination,  the Company shall execute and deliver a new Warrant or
Warrants  in  exchange  for the Warrant or Warrants to be divided or combined in
accordance with such notice.

            (c) The Company shall prepare,  issue and deliver at its own expense
(other than transfer taxes) the new Warrant or Warrants under this Section 7.

            (d) The Company agrees to maintain,  at its aforesaid office,  books
for the registration and the registration of transfer of the Warrants.

            (e) If, at the time of the  surrender of this Warrant in  connection
with any transfer of this  Warrant,  the  transfer of this Warrant  shall not be
registered pursuant to an effective  registration statement under the Securities
Act and under  applicable  state  securities  or blue sky laws,  the Company may
require,  as a  condition  of  allowing  such  transfer  (i) that the

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<PAGE>

Holder or transferee of this Warrant, as the case may be, furnish to the Company
a written  opinion of counsel  (which  opinion  shall be in form,  substance and
scope  customary  for  opinions of counsel in  comparable  transactions)  to the
effect that such transfer may be made without  registration under the Securities
Act and under applicable state securities or blue sky laws, (ii) that the holder
or transferee  execute and deliver to the Company an  investment  letter in form
and  substance  acceptable  to the Company and (iii) that the  transferee  be an
"accredited investor" as defined in Rule 501(a) promulgated under the Securities
Act.

      8. No Rights as Shareholder until Exercise.  This Warrant does not entitle
the Holder to any voting rights or other rights as a shareholder  of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the payment
of the  aggregate  Exercise  Price  (or by means of a  cashless  exercise),  the
Warrant  Shares so purchased  shall be and be deemed to be issued to such Holder
as the record  owner of such  shares as of the close of business on the later of
the date of such surrender or payment.

      9.  Loss,  Theft,  Destruction  or  Mutilation  of  Warrant.  The  Company
covenants that upon receipt by the Company of evidence  reasonably  satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate  relating  to the  Warrant  Shares,  and in case of  loss,  theft or
destruction,  of indemnity or security reasonably  satisfactory to it (which, in
the case of the  Warrant,  shall not include the posting of any bond),  and upon
surrender and cancellation of such Warrant or stock  certificate,  if mutilated,
the Company  will make and deliver a new  Warrant or stock  certificate  of like
tenor  and  dated  as of such  cancellation,  in lieu of such  Warrant  or stock
certificate.

      10. Saturdays,  Sundays,  Holidays,  etc. If the last or appointed day for
the  taking of any action or the  expiration  of any right  required  or granted
herein  shall be a  Saturday,  Sunday or a legal  holiday  on which the New York
Stock  Exchange  is closed,  then such  action may be taken or such right may be
exercised on the next succeeding day not a Saturday,  Sunday or legal holiday on
which the New York Stock Exchange is closed.

      11. Adjustments of Exercise Price and Number of Warrant Shares. The number
and kind of  securities  purchasable  upon the  exercise of this Warrant and the
Exercise  Price  shall be  subject  to  adjustment  from  time to time  upon the
happening of any of the following.  In case the Company shall (i) pay a dividend
in shares of Common  Stock or make a  distribution  in shares of Common Stock to
holders of its outstanding  Common Stock, (ii) subdivide its outstanding  shares
of Common Stock into a greater number of shares,  (iii) combine its  outstanding
shares of Common Stock into a smaller number of shares of Common Stock,  or (iv)
issue any shares of its capital stock in a reclassification of the Common Stock,
then the number of Warrant  Shares  purchasable  upon  exercise of this  Warrant
immediately prior thereto shall be adjusted so that the Holder shall be entitled
to  receive  the kind and number of Warrant  Shares or other  securities  of the
Company  which it would have  owned or have been  entitled  to receive  had such
Warrant been exercised in advance thereof. Upon each such adjustment of the kind
and  number of  Warrant  Shares or other  securities  of the  Company  which are
purchasable  hereunder,  the Holder shall thereafter be entitled to purchase the
number of Warrant Shares or other  securities  resulting from such adjustment at
an Exercise  Price per Warrant Share or other  security  obtained by multiplying
the Exercise Price in effect  immediately prior to such adjustment by the number
of  Warrant  Shares  purchasable  pursuant  hereto  immediately  prior  to  such

                                       4
<PAGE>

adjustment and dividing by the number of Warrant  Shares or other  securities of
the Company resulting from such adjustment.  An adjustment made pursuant to this
paragraph shall become  effective  immediately  after the effective date of such
event retroactive to the record date, if any, for such event.

      12. Reorganization, Reclassification, Merger, Consolidation or Disposition
of Assets.  In case the Company shall  reorganize  its capital,  reclassify  its
capital stock,  consolidate or merge with or into another corporation (where the
Company  is not the  surviving  corporation  or where  there  is a change  in or
distribution with respect to the Common Stock of the Company), or sell, transfer
or  otherwise  dispose  of all or  substantially  all its  property,  assets  or
business   to  another   corporation   and,   pursuant  to  the  terms  of  such
reorganization,   reclassification,  merger,  consolidation  or  disposition  of
assets, shares of common stock of the successor or acquiring corporation, or any
cash,  shares of stock or other securities or property of any nature  whatsoever
(including  warrants or other subscription or purchase rights) in addition to or
in lieu of  common  stock of the  successor  or  acquiring  corporation  ("Other
Property"),  are to be received by or distributed to the holders of Common Stock
of the Company,  then the Holder shall have the right thereafter to receive,  at
the option of the Holder,  upon proper  exercise of this Warrant,  the number of
shares of common  stock of the  successor  or  acquiring  corporation  or of the
Company, if it is the surviving corporation,  and Other Property receivable upon
or as a result of such reorganization,  reclassification,  merger, consolidation
or disposition of assets by a Holder of the number of shares of Common Stock for
which this Warrant is exercisable  immediately  prior to such event.  In case of
any such reorganization,  reclassification, merger, consolidation or disposition
of assets,  the successor or acquiring  corporation  (if other than the Company)
shall  assume  this  Warrant,  subject  to such  modifications  as may be deemed
appropriate (as determined in good faith by resolution of the Board of Directors
of the Company) in order to provide for  adjustments of Warrant Shares for which
this Warrant is exercisable  which shall be as nearly  equivalent as practicable
to the adjustments provided for in this Section 12. For purposes of this Section
12, "common stock of the successor or acquiring corporation" shall include stock
of such  corporation  of any class which is not  preferred  as to  dividends  or
assets  over any  other  class of stock  of such  corporation  and  which is not
subject to  redemption  and shall also include any  evidences  of  indebtedness,
shares of stock or other  securities  which are convertible into or exchangeable
for any such stock,  either  immediately or upon the arrival of a specified date
or the  happening  of a  specified  event and any  warrants  or other  rights to
subscribe  for or purchase  any such stock.  The  foregoing  provisions  of this
Section   12   shall    similarly    apply   to   successive    reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

      13.  Voluntary  Adjustment  by the  Company.  The  Company may at any time
during the term of this Warrant  reduce the then current  Exercise  Price to any
amount and for any period of time deemed  appropriate  by the Board of Directors
of the Company.

      14. Notice of Adjustment.  Whenever the number of Warrant Shares or number
or kind of securities or other  property  purchasable  upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
give  notice  thereof to the  Holder,  which  notice  shall  state the number of
Warrant Shares (and other securities or property)  purchasable upon the exercise
of this  Warrant  and the  Exercise  Price of such  Warrant  Shares  (and  other
securities or property) after such  adjustment,  setting forth a brief statement
of the facts

                                       5
<PAGE>

requiring  such  adjustment  and  setting  forth the  computation  by which such
adjustment was made.

      15. Notice of Corporate Action. If at any time:

            (a) the  Company  shall  take a record of the  holders of its Common
Stock  for the  purpose  of  entitling  them to  receive  a  dividend  or  other
distribution,  or any right to subscribe  for or purchase  any  evidences of its
indebtedness,  any  shares  of stock of any  class or any  other  securities  or
property, or to receive any other right, or

            (b) there shall be any capital  reorganization  of the Company,  any
reclassification  or recapitalization of the capital stock of the Company or any
consolidation  or merger of the  Company  with,  or any sale,  transfer or other
disposition of all or substantially all the property,  assets or business of the
Company to, another corporation or,

            (c)  there  shall  be  a  voluntary  or   involuntary   dissolution,
liquidation or winding up of the Company;

then,  in any one or more of such  cases (but not in such cases if the rights of
the Holder or holders of Common Stock will not be materially  affected  thereby,
as for  example  in the case of a merger to effect a change  of  domicile),  the
Company shall give to Holder (i) at least 20 days' prior  written  notice of the
date on which a record date shall be selected for such dividend, distribution or
right or for determining  rights to vote in respect of any such  reorganization,
reclassification,    merger,   consolidation,   sale,   transfer,   disposition,
liquidation  or  winding  up,  and (ii) in the case of any such  reorganization,
reclassification,    merger,   consolidation,   sale,   transfer,   disposition,
dissolution,  liquidation  or winding up, at least 20 days' prior written notice
of the date when the same shall take place.  Such notice in accordance  with the
foregoing  clause also shall specify (i) the date on which any such record is to
be taken for the purpose of such dividend,  distribution  or right,  the date on
which the  holders  of Common  Stock  shall be  entitled  to any such  dividend,
distribution or right, and the amount and character  thereof,  and (ii) the date
on which any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition,  dissolution,  liquidation or winding up is to take place
and the time, if any such time is to be fixed, as of which the holders of Common
Stock shall be entitled to exchange their Warrant Shares for securities or other
property deliverable upon such disposition,  dissolution, liquidation or winding
up. Each such written notice shall be sufficiently  given if addressed to Holder
at the  last  address  of  Holder  appearing  on the  books of the  Company  and
delivered in accordance with Section 18(d).

      16.  Authorized  Shares.  The Company covenants that during the period the
Warrant is outstanding,  it will reserve from its authorized and unissued Common
Stock a  sufficient  number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant.  The Company
further  covenants  that its  issuance of this  Warrant  shall  constitute  full
authority  to its  officers  who are charged  with the duty of  executing  stock
certificates  to execute and issue the  necessary  certificates  for the Warrant
Shares upon the exercise of the purchase rights under this Warrant.  The Company
will take all such  reasonable  action as may be  necessary  to assure that such
Warrant  Shares  may be issued  as

                                       6
<PAGE>

provided herein without violation of any applicable law or regulation, or of any
requirements of the trading market upon which the Common Stock may be listed.

      Except  and to the extent as waived or  consented  to by the  Holder,  the
Company shall not by any action,  including,  without  limitation,  amending its
certificate of incorporation or through any reorganization,  transfer of assets,
consolidation,  merger,  dissolution,  issue or sale of  securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this  Warrant,  but will at all times in good  faith  assist in the
carrying  out of all such terms and in the taking of all such  actions as may be
necessary  or  appropriate  to protect the rights of Holder as set forth in this
Warrant against  impairment.  Without  limiting the generality of the foregoing,
the Company will (a) not increase the par value of any Warrant  Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value,  (b) take all such action as may be necessary or appropriate in order
that the Company may  validly  and  legally  issue fully paid and  nonassessable
Warrant  Shares upon the  exercise  of this  Warrant,  and (c) use  commercially
reasonable  efforts to obtain all such  authorizations,  exemptions  or consents
from any public regulatory body having jurisdiction  thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

      Before taking any action which would result in an adjustment in the number
of Warrant  Shares for which this  Warrant  is  exercisable  or in the  Exercise
Price, the Company shall obtain all such  authorizations or exemptions  thereof,
or consents  thereto,  as may be necessary  from any public  regulatory  body or
bodies having jurisdiction thereof.

      17. Redemption. If at any time following the Initial Exercise Date (a) the
Company's  Common Stock is then publicly  traded,  (b) the closing bid price for
any 10 consecutive  trading days is at least 250% of the Exercise Price (subject
to  adjustment  in  connection  with any forward or reverse  stock split,  stock
dividend,  merger,  reorganization  or similar  event) (the "Warrant  Redemption
Triggering  Period")  and  (c)  there  is an  effective  registration  statement
covering  the resale of the Warrant  Shares,  the  Company  shall be entitled to
redeem the  Warrants,  in whole or in part,  at a per Warrant  Share  redemption
price of $0.01.  In the event the  Company  elects to redeem this  Warrant,  the
Company  shall provide the Holder with notice of such  redemption  within 5 days
after the last day of the Warrant Redemption  Triggering Period (the "Redemption
Notice").  The Redemption  Notice shall be sent to the Holder in accordance with
the terms set forth in  Section  18(d) and shall set forth the date on which the
redemption  shall  occur,  such date to be no less than 30 days from the date of
the Redemption Notice (the "Redemption Date"). Prior to the Redemption Date, the
Holder  shall have the right to exercise  this  Warrant in  accordance  with the
terms hereof. Upon the Redemption Date, all Warrants noticed for redemption that
have not  theretofore  been  exercised by the Holder shall,  upon payment of the
aggregate  redemption price therefore,  cease to represent the right to purchase
any shares of Common Stock and shall be deemed cancelled without any further act
or deed on the part of the Company.

      18. Miscellaneous.

            (a) Jurisdiction. This Warrant shall constitute a contract under the
laws of Pennsylvania, without regard to its conflict of law principles or rules.

                                       7
<PAGE>

            (b)  Restrictions.  The Holder  acknowledges that the Warrant Shares
acquired  upon the  exercise  of this  Warrant,  if not  registered,  will  have
restrictions upon resale imposed by state and federal securities laws.

            (c)  Nonwaiver  and  Expenses.  No course of dealing or any delay or
failure to exercise any right hereunder on the part of Holder shall operate as a
waiver of such right or otherwise prejudice Holder's rights, powers or remedies,
notwithstanding  all rights hereunder  terminate on the Termination Date. If the
Company  willfully  and  knowingly  fails to comply with any  provision  of this
Warrant,  which results in any material damages to the Holder, the Company shall
pay to  Holder  such  amounts  as shall be  sufficient  to cover  any  costs and
expenses including,  but not limited to, reasonable  attorneys' fees,  including
those of appellate proceedings, incurred by Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights,  powers or remedies
hereunder.

            (d)  Notices.  Any  notice,  request or other  document  required or
permitted to be given or delivered to the Holder by the Company shall be sent to
the Holder at such  address as  maintained  for such  Holder on the books of the
Company.

            (e) Limitation of Liability.  No provision hereof, in the absence of
any  affirmative  action by Holder to exercise this Warrant or purchase  Warrant
Shares, and no enumeration  herein of the rights or privileges of Holder,  shall
give rise to any liability of Holder for the purchase  price of any Common Stock
or as a stockholder  of the Company,  whether such  liability is asserted by the
Company or by creditors of the Company.

            (f) Remedies.  Holder, in addition to being entitled to exercise all
rights  granted by law,  including  recovery  of  damages,  will be  entitled to
specific  performance of its rights under this Warrant.  The Company agrees that
monetary  damages  would not be adequate  compensation  for any loss incurred by
reason of a breach by it of the  provisions of this Warrant and hereby agrees to
waive the defense in any action for  specific  performance  that a remedy at law
would be adequate.

            (g) Successors and Assigns.  Subject to applicable  securities laws,
this Warrant and the rights and obligations  evidenced hereby shall inure to the
benefit of and be binding upon the  successors of the Company and the successors
and permitted assigns of Holder.  The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares.

            (h)  Amendment.  This  Warrant  may be  modified  or  amended or the
provisions hereof waived with the written consent of the Company and the Holder.

            (i) Severability.  Wherever possible, each provision of this Warrant
shall  be  interpreted  in  such  manner  as to be  effective  and  valid  under
applicable  law, but if any  provision of this Warrant shall be prohibited by or
invalid under  applicable law, such provision shall be ineffective to the extent
of such  prohibition or invalidity,  without  invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

            (j)  Headings.  The  headings  used  in  this  Warrant  are  for the
convenience of reference  only and shall not, for any purpose,  be deemed a part
of this Warrant.

                                       8
<PAGE>

      IN WITNESS WHEREOF,  the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated:  December 1, 2004
                                         SMARTSERV ONLINE, INC.

                                         By:
                                            ------------------
                                         Name:  Robert M. Pons
                                         Title: President

                                       9
<PAGE>

                               NOTICE OF EXERCISE

To:   SmartServ Online, Inc.

      (1) The undersigned  hereby elects to purchase  ________ Warrant Shares of
SmartServ  Online,  Inc.  pursuant to the terms of the attached Warrant (only if
exercised in full), and tenders herewith payment of the exercise price, together
with all applicable transfer taxes, if any.

      (2) Payment shall take the form of lawful money of the United States.

      (3) Please issue a certificate or certificates  representing  said Warrant
Shares in the name of the  undersigned  or in such  other  name as is  specified
below:

            Name:      _______________________________

            Address:   _______________________________

                       _______________________________

            SS or Tax
            ID number: _______________________________

The Warrant Shares shall be delivered to the following:

            _______________________________

            _______________________________

            _______________________________

                                    [Warrant holder]

                                    By:
                                        ---------------------------
                                    Name:
                                    Title:

                                    Dated:_________________________

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

      FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

_______________________________________________ whose address is

_______________________________________________________________.

_______________________________________________________________

                                         Dated:  ______________, _______

              Holder's Signature: _____________________________

              Holder's Address:   _____________________________

                                  _____________________________

Signature Guaranteed:  ________________________________________

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

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