Document:

MASTER VENDOR AGREEMENT
                             -----------------------

      THIS MASTER VENDOR AGREEMENT (the "Agreement") is made this 7th day of
January, 2005, by and among KPCCD, INC. ("Purchaser"), NIMESH PATEL, ASHOK
PATEL, and KALA PATEL (collectively, the "Sellers") and PRIMA COMMUNICATIONS,
INC., a New York corporation (the "Master Vendor").

                                   Background:

      A. Sellers and SmartServ Online, Inc. ("SmartServ") are parties to that
certain Stock Purchase Agreement dated as of December 19, 2004 (the "Stock
Purchase Agreement"), whereby Sellers are selling to SmartServ, and SmartServ is
buying from Master Vendor, the Stock (as defined in the Stock Purchase
Agreement) of Purchaser.

      B. Sellers and Purchaser desire that Master Vendor shall sell to
Purchaser, and Purchaser shall buy from Master Vendor, the Inventory
(hereinafter defined), subject to the terms and conditions set forth in this
Agreement.

      C. This Agreement and performance hereunder is a condition precedent to
SmartServ's purchase and the Sellers' sale of such Stock, and but for this
Agreement SmartServ would not purchase and the Sellers would not sell the Stock
and pay or accept the purchase price with respect thereto.

      NOW, THEREFORE, for good and valuable consideration as more fully set
forth herein, and intending to be legally bound, Master Vendor and Purchaser
hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

      1.01. "Forecast" means the forecast of the Requirements during the Term
jointly prepared by Master Vendor and SmartServ, which is attached as Exhibit A.

      1.02. "Inventory" means the international long distance prepaid telephone
calling cards historically sold by Purchaser.

      1.03. "Master Vendor" has the meaning given to that term in the
introduction to this Agreement.

      1.04. "Purchaser" has the meaning given to that term in the introduction
to this Agreement.

      1.05. "Requirements" means the Inventory required by Purchaser at any time
and from time to time subject to the limitations provided herein and in any
event not to exceed the Forecast for any period.

      1.06. "Sellers" has the meaning given to that term in the introduction to
this Agreement.

      1.07. "Stock Purchase Agreement" has the meaning given to that term in the
Background section of this Agreement.

      1.08. Capitalized terms defined within the text of this Agreement shall
have the meanings ascribed to them herein.

<PAGE>

                                   ARTICLE II
                                TERM OF AGREEMENT

      2.01. Term. Subject to Section 2.02 hereof, the term of this Agreement
shall be and this Agreement shall be effective for a period of one (1) year
commencing on the date hereof (the "Term").

      2.02. Early Termination.

            (a) Notwithstanding anything to the contrary set forth herein, if
SmartServ or any majority-owned affiliate thereof at any time during the Term
receives equity financing in excess of $10,000,000 or closes an acquisition of
all or substantially all of the businesses of Telco Group, Inc. and affiliates
(either, a "Significant Event"), this Agreement shall automatically terminate
thirty (30) days after either such event, and Purchaser shall pay all amounts
due Master Vendor hereunder at such time of termination, and shall purchase from
Master Vendor and pay for all Inventory which Master Vendor at such time is
holding for future sale to KPCCD and all Inventory which Master Vendor at such
time has under legally binding order with its suppliers (collectively, the
"Additional Inventory").

            (b) If at the end of nine (9) months from the date hereof a
Significant Event has not occurred, SmartServ shall provide to Master Vendor and
its principals promptly, and in no event more than ten (10) business days after
such date, its business plan for the next twelve (12) months specifically
addressing, among other things, the payment to Master Vendor of all amounts
outstanding under this Agreement. If Master Vendor is not satisfied with the
business plan and the proposed arrangement for payment to it of all amounts then
due hereunder, in its sole and absolute discretion, Master Vendor shall have the
right to terminate this Agreement upon thirty (30) days prior written notice to
KPCCD. Notwithstanding anything to the contrary contained herein, upon the
effective date of such termination, Master Vendor shall be paid all amounts
outstanding hereunder and shall purchase from Master Vendor and pay for the
Additional Inventory.

            (c) This Agreement shall also terminate immediately and all amounts
outstanding hereunder shall be paid in full upon the termination of employment
of Nimesh Patel or Kala Patel for any reason (except upon a voluntary
termination of employment by Nimesh Patel or Kala Patel).

            (d) KPCCD may terminate this Agreement at any time upon five (5)
days prior written notice to Master Vendor, provided, at the effective time of
such termination KPCCD shall pay to Master Vendor all amounts outstanding
hereunder and shall purchase from Master Vendor and pay for the Additional
Inventory.

      2.03. Transition.

            (a) If a Significant Event shall have occurred and Master Vendor
shall have been paid in full for all amounts outstanding hereunder, commencing
at least thirty (30) days prior to expiration of the Term (or upon notice of an
early termination under Section 2.02(d) above, as the case may be) Master Vendor
shall take all necessary steps to transfer to Purchaser the vendor and supplier
relationships of Master Vendor covering the Inventory, and shall transfer all
related written information which may be useful or necessary to Purchaser, in
order to allow Purchaser to possess such relationships after expiration of this
Agreement and purchase its ongoing inventory requirements directly from such
vendors and suppliers.

            (b) If a Significant Event shall not have occurred (except upon an
early termination under Section 2.02(d)), Master Vendor shall only be required
to provide to Purchaser the names and contact information for its vendors and
suppliers and Master Vendor shall not be prohibited from using such information
for its own benefit or the benefit of any of its affiliates.

                                       2
<PAGE>

                                   ARTICLE III
                         SALE AND PURCHASE OF INVENTORY

      3.01. Agreement to Sell and Purchase Inventory. Subject to Section 3.03
hereof, Master Vendor shall sell to Purchaser all of Purchaser's Requirements of
Inventory in accordance with the Forecast.

      3.02. Quantity.

            (a) On or before the date hereof, Sellers and Master Vendor have
provided Purchaser with the Forecast of Inventory that will be needed by
Purchaser during the Term; it being understood that Sellers have owned and
operated Purchaser and Purchaser is relying on Seller's expertise in preparing
the forecast.

            (b) As orders from Purchaser's customers are received by Purchaser,
purchase orders will be placed with Master Vendor by Purchaser, and Master
Vendor will at the same time issue its invoice to Purchaser and deliver the
applicable Inventory to Purchaser.

            (c) To permit Master Vendor to plan for efficient operations,
Purchaser will provide to Master Vendor an updated Forecast of the Requirements
on a rolling monthly basis for the following three (3) month period, which
updated Forecast, to the extent it calls for an increase in the Forecast, shall
be subject to acceptance by Master Vendor. Purchaser shall not be required to
provide such updated Forecast for the first month following the date hereof.
Sellers shall be responsible and take such actions to ensure that Master Vendor
will be able to furnish Purchaser the Inventory to fulfill its obligations
hereunder in accordance with the Forecast.

                                   ARTICLE IV
                            PAYMENT OF PURCHASE PRICE

      4.01. Purchase Price. The purchase price for the Inventory (the "Purchase
Price") shall be an amount equal to the actual price paid by Master Vendor for
the Inventory plus all related costs, fees and expenses relating thereto,
including, without limitation, all shipping charges, taxes and insurance with
respect thereto, and giving effect to all allowances, rebates and discounts
provided to Master Vendor by its suppliers. Upon Purchaser's request, Master
Vendor shall provide Purchaser with copies of invoices and other related
documentation from Master Vendor's suppliers with respect to the foregoing.

      4.02. Time of Payment. Except as provided in Section 4.03, Purchaser shall
pay Master Vendor for Inventory within two (2) business days after Purchaser
receives payment therefor from its customer.

      4.03. Positive Cash Flow. If Purchaser at any time does not have positive
cash flow basis, Purchaser may withhold payments of the Purchase Price in an
amount equal to the deficit in cash flow until such time as Purchaser has
positive cash flow; provided, the maximum dollar amount which may be withheld by
Purchaser hereunder shall be $ 150,000.00. By way of example, if Purchaser owes
Master Vendor $500,000, and has sold and collected $510,000 but has paid
expenses (or has expenses then immediately payable) of $20,000, Purchaser will
be deemed to have negative cash flow and will pay $490,000 to the Master Vendor
and defer the difference of $10,000 until Purchaser ahs sufficient positive cash
flow. Purchaser and Seller shall jointly reconcile cash flow on a weekly basis.

                                       3
<PAGE>

                                   ARTICLE V
                                 DELIVERY TERMS

      5.01. Delivery. Master Vendor shall deliver the Inventory at Purchaser's
place of business against presentation of written invoices therefore.

      5.02. Risk of Loss. Master Vendor assumes all risk of loss or damage to
Inventory until the delivery of the Inventory to Purchaser. Master Vendor, in
its sole discretion and at its sole cost and expense, may maintain insurance on
the Inventory in such amounts as Master Vendor deems necessary.

      5.03. Purchase Orders and Invoices. Purchase orders and corresponding
invoices shall clearly identify the product sold, quantity and item pricing. The
Inventory delivered by Master Vendor shall conform to the quantity and
description set forth on the Purchase Order. The invoice must be delivered to
Purchaser concurrently with the delivery of goods to Purchaser. It is understood
and agreed that Master Vendor and Purchaser will be conducting business from the
same facility located in Jackson Heights, New York.

      5.04. Defective and Non-Conforming Goods; Customer Returns; and Credits.

            5.04.1 Purchaser shall accept returns of defective and
                   non-conforming product from its customers in accordance with
                   the historic practices of KPCCD prior to the date hereof.

            5.04.2 Master Vendor shall accept returns of all such defective and
                   non-conforming products from Purchaser and shall issue a
                   credit for the full purchase price paid therefore.

                                   ARTICLE VI
                    REPRESENTATIONS, WARRANTIES AND COVENANTS

      6.01. Representations, Warranties and Covenants of Master Vendor. Master
Vendor hereby represents, warrants and covenants to Purchaser as follows:

            (a) Title. Master Vendor represents and warrants that it will
transfer to Purchaser good title to the Inventory, subject to no liens, claims,
security interests, pledges, hypothecations or other encumbrances or charges.
Master Vendor represents and warrants that it has full power and legal capacity
to execute and deliver this Agreement and to perform its obligations pursuant to
the terms of this Agreement.

            (b) Conflicts. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby do not, and will not,
violate, conflict with, or result in a breach of, or default under, any
agreement, indenture or other instrument, or any order or decree of any court or
other governmental body, to which Master Vendor is a party or by which Master
Vendor or any of its assets or properties, including without limitation the
Inventory, is bound.

            (c) Warranties. Purchaser will make the warranties to its customers
with respect to the Inventory in accordance with the historic practices of
Purchaser prior to the date hereof, and Master Vendor shall make those same
warranties to Purchaser hereunder with respect to the Inventory.

                                       4
<PAGE>

                                   ARTICLE VII
                                  MISCELLANEOUS

      7.01. Entire Agreement. This Agreement and the Stock Purchase Agreement
and Employment Agreements with Nimesh Patel and Kala Patel constitute the entire
agreement and understanding of the parties with respect to the subject matter
hereof and supersede all prior oral or written agreements, arrangements, and
understandings with respect thereto.

      7.02. Amendment. This Agreement may be modified, amended, superseded, or
canceled only by a written instrument signed by each of the parties hereto and
any of the terms, covenants, representations, warranties or conditions hereof
may be waived only by a written instrument executed by the party to be bound by
any such waiver.

      7.03. Severability. If a court of competent jurisdiction holds that there
is a conflict between any provisions hereof and any present or future statute,
law, ordinance, regulation, or other pronouncement having the force of law, the
latter shall prevail, but the provision of this Agreement affected thereby shall
be curtailed and limited only to the extent necessary to bring it within the
requirements of the law, and the remaining provisions of this Agreement shall
remain in full force and effect.

      7.04. Headings. The Article, Section and other headings contained in this
Agreement are for reference purposes only and shall not in any way affect the
meaning and interpretation of this Agreement.

      7.05. Counterparts. This Agreement may be executed in several counterparts
and all such counterparts so executed shall constitute one agreement, binding on
all of the parties hereto.

      7.06. Successors. Neither party may transfer or assign this Agreement or
any part hereof (by operation of law or otherwise) without the prior written
consent of the other party, and any such attempted transfer or assignment
without such consent shall be void. Subject to the preceding sentence, this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective permitted assignees or successors in interest. An assigning
party shall continue to be bound to all of its obligations under this Agreement.

      7.07. Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed given (i) if delivered
personally or sent by facsimile transmission (and a copy sent by mail), on the
date given, (ii) if delivered by a courier express delivery service, on the date
of delivery, or (iii) if by certified or registered mail, postage prepaid,
return receipt requested, three (3) days after mailing to the parties (or their
successors in interest or their assignees) at the addresses set forth in the
Purchase Agreement, or at such other address as such party may designate by
written notice in the manner aforesaid.

      7.08. Governing Law. This Agreement is governed by and shall be construed
in accordance with the law of the State of New York, without regard to any
principles of conflicts of law.

      7.09. Choice of Venue; Consent to Jurisdiction. In any action brought by
SmartServ in connection with a matter arising out of or relating to this
Agreement, each of the parties irrevocably consents to the exclusive
jurisdiction and venue of the courts of the State of New York, and the United
States District Court for the Eastern District of New York. In any action
brought by any party other than SmartServ in connection with a matter arising
out of or relating to this Agreement, each of the parties irrevocably consents
to the exclusive jurisdiction and venue of the courts of the Commonwealth of
Pennsylvania, and the United States District Court for the Eastern District of
Pennsylvania.

                                       5
<PAGE>

      7.10. Waiver. The waiver by any of the parties, express or implied, of any
right under this Agreement or with respect to any failure to perform under or
breach of this Agreement by the other party, shall not constitute or be deemed a
waiver of any other right under this Agreement or of any other failure to
perform under or breach of this Agreement by the other party, whether of a
similar or dissimilar nature.

      7.11. Force Majeure. Neither party to this Agreement shall be liable to
the other party for any loss, injury, delay, damages or other casualty suffered
or incurred by such other party due to riots, storms, fires, earthquakes,
floods, explosions, acts of God, war, governmental action, insurrection, or any
other similar cause which is beyond the reasonable control of such party. Any
such failure or delay by either party in the performance of any obligations
under this Agreement due to one or more of the foregoing causes shall not be
considered to be a breach of this Agreement. Any such failure or delay under
this section which lasts longer than sixty (60) days shall be grounds for either
party to terminate this Agreement without any penalty.

      7.12. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR
COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                       6
<PAGE>

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

                                    KPCCD, INC.

                                    By:/s/ Nimesh N. Patel
                                    --------------------------------------------
                                    Name:  Nimesh N. Patel
                                    Title:  Vice President

                                    /s/ Nimesh Patel
                                    --------------------------------------------
                                    NIMESH PATEL

                                    /s/ Ashok Patel
                                    --------------------------------------------
                                    ASHOK PATEL

                                    /s/ Kala Patel
                                    --------------------------------------------
                                    KALA PATEL

GUARANTEED BY:

SMARTSERV ONLINE, INC.

By:/s/ Robert M. Pons
---------------------------
Robert M. Pons, President

                                       7
<PAGE>

                                    Exhibit A

                                    Forecast

                                  See attached.EXHIBIT 10.2

THE SECURITIES  REPRESENTED HEREBY HAVE NOT BEEN-REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"). THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD OR  OTHERWISE  TRANSFERRED  EXCEPT  PURSUANT TO AN  EFFECTIVE  REGISTRATION
STATEMENT UNDER THE ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION  UNDER THE
ACT OR APPLICABLE BLUE SKY LAWS.

THE REGISTERED HOLDER OF THIS WARRANT, BY ITS ACCEPTANCE HEREOF,  AGREES THAT IT
WILL NOT SELL, TRANSFER OR ASSIGN THIS WARRANT EXCEPT AS HEREIN PROVIDED.

No. 2005-1

                          COMMON STOCK PURCHASE WARRANT

               For the Purchase of 250,000 Shares of Common Stock

                                       of

                             SMARTSERV ONLINE, INC.

                            (a Delaware corporation)

1.    Warrant.

            THIS  CERTIFIIES  THAT,  in  exchange  for  due  consideration,  the
sufficiency  of which is  hereby  acknowledged,  paid by or on behalf of Paul J.
Keeler (the "Holder"), as registered owner of this Warrant, to SMARTSERV ONLINE,
INC. (the "Company"),  the Holder is entitled, at any time and from time to time
during the period  commencing on January 10, 2005 and expiring on and after 5:00
p.m., New York time on January 10,  2010(the  "Exercise  Period"),  to subscribe
for,  purchase and receive,  in whole or in part, up to 250,000 shares of Common
Stock,  $.01 par value (the "Common  Stock"),  of the  Company.  This Warrant is
initially  exercisable  as to each share of Common Stock covered  thereby at two
dollar  and ten  cents  ($2.10)  per  share  (the  "Exercise  Price").  The term
"Exercise  Price" shall mean the initial  exercise price or such exercise price,
as adjusted in the manner provided herein, depending on the context.

2.    Exercise

            In order to exercise this Warrant, the exercise form attached hereto
must be duly  executed,  completed and  delivered to the Company,  together with
this  Warrant  and  payment of the  Exercise  Price for the shares of the Common
Stock being purchased.  If the rights  represented hereby shall not be exercised
on or before the end of the Exercise  Period,  this Warrant  shall become and be
void and without further force or effect and all rights represented hereby shall
cease and expire.

3.    Restrictions on Transfer; Registration of Transfers.

            3.1 Restrictions on Transfer. The registered Holder of this Warrant,
by acceptance hereof, agrees that prior to any proposed transfer of this Warrant
or any securities  purchased upon exercise of this Warrant,  if such transfer is
not made pursuant to an effective  registration  statement  under the Securities
Act of 1933,  as amended  (the  "Act"),  the Holder  will,  if  requested by the
Company, deliver to the Company:

            (i) an  opinion  of  counsel  reasonably  satisfactory  in form  and
            substance  to  the  Company  that  the  Warrant  or  the  securities
            purchased upon exercise of this Warrant may be  transferred  without
            registration under the Act;

<PAGE>

                                                                    EXHIBIT 10.2

            (ii) an agreement by the proposed transferee to the placement of the
            restrictive  investment legend set forth below on the Warrant or the
            securities to be received upon exercise of the Warrant;

            (iii) an agreement by such  transferee  that the Company may place a
            notation  in the  stock  books of the  Company  or a "stop  transfer
            order" with any  transfer  agent or  registrar  with  respect to the
            securities purchased upon exercise of this Warrant; and

            (iv) an agreement by such  transferee to be bound by the  provisions
            of this  Section 3 relating to the  transfer of such  Warrant or the
            securities purchased upon exercise of such Warrant.

            Each Warrant  Holder  agrees that each Warrant and each  certificate
representing  securities  purchased  upon  exercise of this Warrant shall bear a
legend as follows unless such securities have been registered under the Act:

            "The  securities  represented  by this  certificate  have  not  been
            registered under the Securities Act of 1933, as amended (the "Act").
            The  securities  may not be  offered  for  sale,  sold or  otherwise
            transferred except pursuant to an effective  registration  statement
            under the Act, or pursuant to an exemption from  registration  under
            the Act or applicable blue sky laws."

            3.2  Registration  of  Transfers.  In order  to make  any  permitted
assignment,  the Holder must deliver to the Company the assignment form attached
hereto duly  executed and  completed,  together with this Warrant and payment of
all transfer taxes, if any, payable in connection  therewith.  The Company shall
immediately  transfer the number of Warrants specified in the assignment form on
the books of the Company and shall execute and deliver a new warrant or warrants
of like tenor to the appropriate  assignee(s)  expressly evidencing the right to
purchase  the number of shares of Common  Stock  purchasable  hereunder  or such
portion of such number as shall be contemplated by such assignment.

<PAGE>

                                                                    EXHIBIT 10.2

4.    New Warrants to be Issued.

            4.1 Partial  Exercise or Transfer.  Subject to the  restrictions  in
Section 3 hereof, this Warrant may be exercised or assigned in whole or in part.
In the event of the exercise or assignment  hereof in part only,  upon surrender
of this Warrant for  cancellation,  together with the duly executed  exercise or
assignment  form and funds  sufficient  to pay any  required  transfer  tax, the
Company shall cause to be delivered to the Holder  without  charge a new warrant
or new  warrants  of like  tenor  with this  Warrant  in the name of the  Holder
evidencing  the right to purchase,  in the  aggregate,  the remaining  number of
underlying shares of Common Stock  purchasable  hereunder after giving effect to
any such partial exercise or assignment.

            4.2 Lost  Certificate.  Upon  receipt  by the  Company  of  evidence
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
and of an  indemnification in favor of the Company,  reasonably  satisfactory to
it, the Company  shall execute and deliver a new warrant of like tenor and date.
Any such new warrant  executed and  delivered  as a result of such loss,  theft,
mutilation or destruction shall constitute an additional  contractual obligation
on the part of the Company.

5.    Adjustments to Exercise Price and Number of Securities.

            5.1  Subdivision and  Combination.  In case the Company shall at any
time subdivide or combine the outstanding  shares of Common Stock,  the Exercise
Price shall forthwith be proportionately decreased in the case of subdivision or
increased in the case of combination.

<PAGE>

                                                                    EXHIBIT 10.2

            5.2  Adjustment  in Number of Shares.  Upon each  adjustment  of the
Exercise  Price  pursuant  to the  provisions  of this  Section 5, the number of
shares of Common  Stock  issuable  upon the  exercise of this  Warrant  shall be
adjusted to the nearest full number  obtained by multiplying  the Exercise Price
in effect immediately prior to such adjustment by the number of shares of Common
Stock  issuable  upon  exercise  of  this  Warrant  immediately  prior  to  such
adjustment and dividing the product so obtained by the adjusted Exercise Price.

            5.3  Recapitalization.  For the  purpose of this  Warrant,  the term
"Common  Stock"  shall  also  mean  any  other  class of  stock  resulting  from
successive  changes or  reclassifications  of Common Stock consisting  solely of
changes in par value, or from par value to no par value, or from no par value to
par value.

            5.4 Merger or  Consolidation.  In case of any  consolidation  of the
Company  with,  or merger of the Company  with,  or merger of the Company  into,
another  corporation (other than a consolidation or merger which does not result
in  any  reclassification  or  change  of the  outstanding  Common  Stock),  the
corporation  formed by such consolidation or merger shall execute and deliver to
the Holder(s),  in lieu of this Warrant,  a supplemental  warrant providing that
the holder of each warrant then outstanding or to be outstanding  shall have the
right thereafter (until the stated expiration of such warrant) to receive,  upon
exercise  of such  warrant,  the kind and  number  of  shares of stock and other
securities  and property  receivable  upon such  consolidation  or merger,  by a
holder of the  number of shares of Common  Stock of the  Company  for which such
warrant  might  have been  exercised  immediately  prior to such  consolidation,
merger,  sale or transfer.  Each such  supplemental  warrant  shall  provide for
adjustments,  which shall be identical to the adjustments provided in Section 5.
The  above  provision  of this  Section  shall  similarly  apply  to  successive
consolidations or mergers.

            5.5  Redemption of Warrants.  This Warrant cannot be redeemed by the
Company without the prior written consent of the Holder.

            5.6  Elimination of Fractional  Interests.  The Company shall not be
required to issue certificates  representing fractions of shares of Common Stock
upon the exercise of the Warrant, nor shall it be required to issue scrip or pay
cash in lieu of any  fractional  interests,  it being the intent of the  parties
that all fractional interests shall be eliminated by rounding any fraction up to
the  nearest  whole  number  of  shares  of  Common  Stock or other  securities,
properties or rights as shall be issuable upon the exercise thereof.

6.    Reservation.

            The Company shall at all times reserve and keep available out of its
authorized  shares of Common  Stock,  solely for the  purpose of  issuance  upon
exercise  of the  Warrant,  such  number  of  shares  of  Common  Stock or other
securities, properties or rights as shall be issuable upon the exercise thereof.
The Company  covenants and agrees that, upon exercise of the Warrant and payment
of the Exercise Price therefor,  all shares of Common Stock and other securities
issuable upon such  exercise  shall be duly and validly  issued,  fully paid and
nonassessable.

7.    Certain Notice Requirements.

            7.1  Holder's  Right to  Receive  Notice.  Nothing  herein  shall be
construed  as  conferring  upon the  Holder  the right to vote or  consent or to
receive  notice as a  stockholder  for the  election of  directors  or any other
matter, or as having any rights whatsoever as a stockholder of the Company.  If,
however,  at any time prior to the  expiration  of the Warrant and its exercise,
any of the events described in Section 7.2 shall occur,  then, in one or more of
said events,  the Company  shall give written  notice of such event at least ten
(10) days  prior to the date fixed as a record  date or the date of closing  the
transfer books for the  determination  of the  stockholders  entitled to vote on
such proposed  dissolution,  liquidation,  winding up or sale. Such notice shall
specify  such record date or the date of the closing of the transfer  books,  as
the case may be.

<PAGE>

                                                                    EXHIBIT 10.2

            7.2 Events Requiring  Notice.  The Company shall be required to give
the  notice  described  in this  Section 7 upon a  dissolution,  liquidation  or
winding up of the Company  (other than in  connection  with a  consolidation  or
merger)  or a sale  of all or  substantially  all of its  property,  assets  and
business shall be proposed.

            7.3 Notice of Change in Exercise Price. The Company shall,  promptly
after an event  requiring a change in the Exercise  Price  pursuant to Section 5
hereof,  send  notice to the  Holders  of such  event  and  change  (the  "Price
Notice").  The Price Notice shall  describe the event causing the change and the
method of calculating  same and shall be certified as being true and accurate by
the Company's Chief Financial Officer.

            7.4  Transmittal  of Notices.  All notices,  requests,  consents and
other  communications under this Warrant shall be in writing and shall be deemed
to have  been  duly  given or made when hand  delivered,  or when  delivered  by
responsible overnight courier:

                        (i)   If to the registered  Holder of this Warrant,  to:
                              Paul J Keeler 480 Field Point Road
                                     Greenwich, CT  06830-7056
                              Attn: Paul J. Keeler

                        (ii)  if to the Company, to:
                              SmartServ Online, Inc.
                              2250 Butler Pike, Suite 150
                              Plymouth Meeting, PA 19462
                              Attention: Chief Executive Officer

Either the Holder or the Company may change its address by notice given pursuant
to this Section 7.4.

8.    Miscellaneous.

            8.1  Amendments.  The  Company  and the Holder may from time to time
supplement or amend this Warrant.

            8.2 Headings. The headings contained herein are for the sole purpose
of  convenience  of  reference,  and shall  not in any way  limit or affect  the
meaning or interpretation of any of the terms or provisions of this Warrant.

            8.3  Entire  Agreement.   This  Warrant  (together  with  the  other
agreements and documents being delivered  pursuant to or in connection with this
Warrant)  constitutes the entire agreement of the parties hereto with respect to
the  subject   matter  hereof,   and   supersedes   all  prior   agreements  and
understandings  of the parties,  oral and  written,  with respect to the subject
matter  hereof.

            8.4 Binding  Effect.  This Warrant shall inure solely to the benefit
of, and shall be binding  upon,  the Holder and the Company and their  permitted
assignees, respective successors, and legal representatives, and no other person
shall have or be construed to have any legal or equitable right, remedy or claim
under or in respect of or by virtue of this  Warrant  or any  provisions  herein
contained.

            8.5 Governing Law: Submission to Jurisdiction. This Warrant shall be
governed by and construed and enforced in accordance  with the laws of the State
of Delaware,  without  giving  effect to  principles  of conflicts of laws.  Any
action, proceeding or claim against the Company or the Holder arising out of, or
relating in any way to this Warrant  shall be brought and enforced in the courts
of the Common Pleas of Montgomery  County,  Pennsylvania or of the United States
of America for the Eastern  District  of  Pennsylvania,  and the Company and the
Holder  irrevocably  submit to such  jurisdiction,  which  jurisdiction shall be
exclusive. The parties hereto waive any objection to such exclusive jurisdiction
and that such courts represent an inconvenient forum.

<PAGE>

                                                                    EXHIBIT 10.2

            8.6 Waiver.  The failure of the Company or the Holder to at any time
enforce any of the  provisions  of this Warrant shall not be deemed or construed
to be a waiver of any such  provision,  nor in any way to affect the validity of
this Warrant or any  provision  hereof or the right of the Company or any Holder
to thereafter enforce each and every provision of this Warrant. No waiver of any
breach, noncompliance or nonfulfillment of any of the provisions of this Warrant
shall be  effective  unless set forth in a written  instrument  executed  by the
party or parties against whom or which enforcement of such waiver is sought; and
no waiver of any such breach, noncompliance or nonfulfillment shall be construed
or deemed to be a waiver of any other or  subsequent  breach,  noncompliance  or
nonfulfillment.

            IN WITNESS WHEREOF, the Company has caused this Warrant to be signed
by its duly authorized officer effective as of the 10th day of January, 2005.

                                 SMARTSERV ONLINE, INC.

                                 By: /s/ Robert M. Pons
                                     -----------------------
                                 Name: Robert M. Pons
                                 Title: Chief Executive Officer

<PAGE>

                                                                    EXHIBIT 10.2

Form to be used to exercise Warrant:

SMARTSERV ONLINE, INC.
2250 Butler Pike
Suite 150
Plymouth Meeting, PA 19462

Date:
     ---------------------------

             The  undersigned  hereby elects  irrevocably to exercise the within
Warrant and to purchase              shares of Common Stock of SmartServ Online,
Inc. and hereby makes payment of $              (at the rate of $            per
share) in  payment of the  Exercise  Price  pursuant  thereto.  The  undersigned
represents that it is an accredited  investor within the meaning of Regulation D
of the  General  Rules and  Regulations  under the  Securities  Act of 1933,  as
amended.  Please  issue the shares as to which  this  Warrant  is  exercised  in
accordance with the instructions given below.

                                             ------------------------------
                                             Signature

                                             ------------------------------
                                             Signature Guaranteed

                   INSTRUCTIONS FOR REGISTRATION OF SECURITIES

NAME
     ---------------------------------------------------------------------------
                            (Print in Block Letters)

ADDRESS
       -------------------------------------------------------------------------

            NOTICE:  The signature to this form must correspond with the name as
written  upon  the  face of the  within  Warrant  in  every  particular  without
alteration or enlargement or any change whatsoever,  and must be guaranteed by a
bank,  other than a savings  bank,  or by a trust  company  or by a firm  having
membership on a registered national securities exchange.

<PAGE>

                                                                    EXHIBIT 10.2

Form to be used to assign Warrant:

                                   ASSIGNMENT

            (To be executed by the registered Holder to effect a transfer of the
within Warrant):

            FOR  VALUE   RECEIVED,                                  does  hereby
sell,   assign  and   transfer   unto                             the  right  to
purchase               shares of Common Stock of  SmartServ  Online,  Inc.  (the
"Company") evidenced by the within Warrant and does hereby authorize the Company
to transfer such right on the books of the Company.

Dated:
      ---------------

                                             ------------------------------
                                             Signature

                                             ------------------------------
                                             Signature Guaranteed

            NOTICE:  The signature to this form must correspond with the name as
written  upon  the  face of the  within  Warrant  in  every  particular  without
alteration or enlargement or any change whatsoever,  and must be guaranteed by a
bank,  other than a savings  bank,  or by a trust  company  or by a firm  having
membership on a registered national securities exchange.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]