Document:

10.3  Warrant
issued to Southridge Partners II, LP

    

    ANNEX
TO PRIVATE EQUITY CREDIT
AGREEMENT

    

    FORM
OF WARRANT

    

    NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
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. THIS SECURITY
AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITIES.

    

    Original
Issue Date: JULY 26, 2010

    Original
Exercise Price $.001 or Par Value, whatever may be lower

    Warrant
Shares: 5,000,000

    

    Marketing
Worldwide Corporation

    

    COMMON
STOCK PURCHASE WARRANT

    SERIES
2010-7-06

    

    THIS COMMON STOCK PURCHASE WARRANT (the
“Warrant”)
certifies that, for value received, Southridge Partners II, LP (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 the date hereof (the “Original Issue Date”)
and on or prior to the close of business on the last day of the calendar month
in which the tenth anniversary of the Original Issue Date (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Marketing Worldwide
Corporation

    a
Delaware corporation (the “Company”), up to Five
Million (5,000,000) shares (the “Warrant Shares”) of
Common Stock. The purchase price of one share of Common Stock under this Warrant
shall be equal to the Exercise Price, as defined in Section 2(b).

    

    This Warrant was originally issued to
the Holder or the Holder’s predecessor in interest on the Original Issue Date
identified in the caption of this Warrant.

    

    Section
1.              Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings
set forth in that certain Private Equity Credit Agreement, dated as of JULY 26,
2010 (the “Purchase
Agreement”), to which the Company and the Holder (or the Holder’s
predecessor in interest) were parties, as amended, modified or supplemented from
time to time in accordance with its terms.

     

    
      
         

      

      
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    Section
2.              Exercise.

    

    (a)           Exercise of Warrant.
Exercise of the purchase rights represented by this Warrant may be made, in
whole or in part, at any time or times on or after the Original Issue Date and
on or before the Termination Date by delivery to the Company of a duly executed
facsimile copy of the Notice of Exercise Form annexed hereto (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 the Holder appearing on the books of the
Company); and, within three (3) Trading Days of the date said Notice of Exercise
is delivered to the Company, the Company shall have received payment of the
aggregate Exercise Price of the shares thereby purchased by wire transfer or
cashier’s check drawn on a United States bank. Notwithstanding anything herein
to the contrary, the Holder shall not be required to physically surrender this
Warrant to the Company until the Holder has purchased all of the Warrant Shares
available hereunder and the Warrant has been exercised in full, in which case,
the Holder shall surrender this Warrant to the Company for cancellation within
three (3) Trading Days of the date the final Notice of Exercise is delivered to
the Company. Partial exercises of this Warrant resulting in purchases of a
portion of the total number of Warrant Shares available hereunder shall have the
effect of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant Shares
purchased. The Holder and the Company shall maintain records showing the number
of Warrant Shares purchased and the date of such purchases. The Company shall
deliver any objection to any Notice of Exercise Form within one (1) Business Day
of receipt of such notice. In the event of any dispute or discrepancy, the
records of the Holder shall be controlling and determinative in the absence of
manifest error. The Holder and any assignee, by acceptance of this Warrant,
acknowledge and agree that, by reason of the provisions of this paragraph,
following the purchase of a portion of the Warrant Shares hereunder, the number
of Warrant Shares available for purchase hereunder at any given time may be less
than the amount stated on the face hereof.

    

    (b)           Exercise Price. The
exercise price per share of the Common Stock under this Warrant shall be the
Original Exercise Price identified in the caption to this Warrant, subject to
adjustment hereunder (the “Exercise
Price”).

    

    (c)           Cashless
Exercise.

    (i) This Warrant may also be exercised
at such time by means of a “cashless exercise” in which the Holder shall be
entitled to receive a certificate for the number of Warrant Shares equal to the
quotient obtained by dividing [(A-B) (X)] by (A), where:

    

     (A) =     the
VWAP on the Trading Day immediately preceding the date of such
election;

    

     (B) =    
 the Exercise Price of this Warrant, as adjusted; and

    

    
      (X)
= the
number of Warrant Shares issuable upon exercise of this Warrant in accordance
with the terms of this Warrant by means of a cash exercise rather than a
cashless exercise.

    

    

    (ii) Notwithstanding anything herein to
the contrary, if any portion of this Warrant remains unexercised as of the
Termination Date and the VWAP on the Trading Day immediately before the
Termination Date is greater than the applicable Exercise Price as of the
Termination Date, then, without further action by the Holder, this Warrant shall
be deemed to have been exercised automatically on  the date and time
(the “Automatic
Exercise Date”) which is the immediately prior to the close of business
on the Termination Date (or, in the event that the Termination Date is not a
Business Day, the immediately preceding Business Day) as if the Holder had duly
given a Notice of Exercise for a “cashless” exercise as contemplated by this
Section 2(c), and the Holder (or such other person or persons as directed by the
Holder) shall be treated for all purposes as the holder of record of such
Warrant Shares as of the close of business on such Automatic Exercise Date. This
Warrant shall be deemed to be surrendered to the Company on the Automatic
Exercise Date by virtue of this Section 2(c) without any action by the
Holder.

     

    
      
         

      

      
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    (d) Exercise Limitations;
Holder’s Restrictions. Except (i) as specifically provided in this
Warrant as an exception to this provision, (ii) on the Automatic Exercise Date,
or (iii) while there is outstanding a tender offer for any or all of the shares
of the Company’s Common Stock, the Company shall not effect any exercise of this
Warrant, and a Holder shall not have the right to exercise any portion of this
Warrant, pursuant to Section 2 or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of
Exercise, the Holder (together with the Holder’s Affiliates, and any other
person or entity acting as a group together with the Holder or any of the
Holder’s Affiliates), would beneficially own in excess of the Beneficial
Ownership Limitation (as defined below).  For purposes of the
foregoing sentence, the number of shares of Common Stock beneficially owned by
the Holder and its Affiliates shall include the number of shares of Common Stock
issuable upon exercise of this Warrant with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which
would be issuable upon (A) exercise of the remaining, nonexercised portion of
this Warrant beneficially owned by the Holder or any of its Affiliates and (B)
exercise or conversion of the unexercised or nonconverted portion of any other
securities of the Company (including, without limitation, any other Common Stock
Equivalents) subject to a limitation on conversion or exercise analogous to the
limitation contained herein beneficially owned by the Holder or any of its
affiliates.  Except as set forth in the preceding sentence, for
purposes of this Section 2(d), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder, it being acknowledged by the Holder that the Company is
not representing to the Holder that such calculation is in compliance with
Section 13(d) of the Exchange Act and the Holder is solely responsible for any
schedules required to be filed in accordance therewith. To the extent that the
limitation contained in this Section 2(d) applies, the determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable shall be in the sole discretion of the Holder, and the submission of
a Notice of Exercise shall be deemed to be the Holder’s determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable, in each case subject to the Beneficial Ownership Limitation, and
the Company shall have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 2(d), in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as
reflected in (x) the Company’s most recent Form 10-Q or Form 10-K (or similar
form, if applicable), as the case may be, (y) a more recent public announcement
by the Company or (z) any other notice by the Company or the Company’s transfer
agent (the “Transfer
Agent”) setting forth the number of shares of Common Stock
outstanding.  Upon the written or oral request of a Holder, the
Company shall within two Trading Days confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding.  In any
case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company,
including this Warrant, by the Holder or its Affiliates since the date as of
which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership
Limitation” shall be 4.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant.  Nothing herein shall
preclude the Holder from disposing of a sufficient number of other shares of
Common Stock beneficially owned by the Holder so as to thereafter permit the
continued exercise of this Warrant. The provisions of this paragraph shall be
construed and implemented in a manner otherwise than in strict conformity with
the terms of this Section 2(d) to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended Beneficial Ownership
Limitation herein contained or to make changes or supplements necessary or
desirable to properly give effect to such limitation. The limitations contained
in this paragraph shall apply to a successor holder of this
Warrant.

     

    
      
         

      

      
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    (e)           Mechanics of
Exercise.

    

    (i)  
         Delivery of Certificates
Upon Exercise. Certificates for shares purchased hereunder shall be
transmitted by the Transfer Agent to the Holder by crediting the account of the
Holder’s prime broker with the Depository Trust Company through its Deposit
Withdrawal Agent Commission (“DWAC”) system if the
Company is then a participant in such system and the shares are eligible for
resale without volume or manner-of-sale limitations pursuant to Rule 144, and
otherwise by physical delivery to the address specified by the Holder in the
Notice of Exercise within three (3) Trading Days from the delivery to the
Company of the Notice of Exercise Form, surrender of this Warrant (if required)
and payment of the aggregate Exercise Price as set forth above (“Warrant Share Delivery
Date”). This Warrant shall be deemed to have been exercised on the date
the Exercise Price, if any, is received by the Company or on date the Notice of
Exercise is received, if it reflects a cashless exercise. The Warrant Shares
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 (or by cashless exercise, if
permitted) and all taxes required to be paid by the Holder, if any, pursuant to
Section 2(e)(vi) prior to the issuance of such shares, have been paid. If the
Company fails for any reason to deliver to the Holder certificates evidencing
the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery
Date, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant Shares subject to such exercise
(based on the VWAP of the Common Stock on the date of the applicable Notice of
Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the seventh
(7th) Trading Day after such liquidated damages begin to accrue) for each
Trading Day after the second (2nd) Trading Day after such Warrant Share Delivery
Date until such certificates are delivered.

    

    (ii)           Delivery of New Warrants
Upon Exercise. If this Warrant shall have been exercised in part, the
Company shall, at the request of a Holder and upon surrender of this Warrant
certificate, 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.

    

    (iii)          Rescission Rights. If
the Company fails to cause its Transfer Agent to transmit to the Holder a
certificate or certificates representing the Warrant Shares pursuant to this
Section 2(e)(i) by the Warrant Share Delivery Date, then the Holder will have
the right to rescind such exercise.

    

    (iv)          Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Exercise. In addition to any
other rights available to the Holder, if the Company fails to cause its transfer
agent to transmit to the Holder a certificate or certificates representing the
Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery
Date, and if after such date the Holder is required by its broker to purchase
(in an open market transaction or otherwise) or the Holder’s brokerage firm
otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale
by the Holder of the Warrant Shares which the Holder anticipated receiving upon
such exercise (a “Buy-In”), then the
Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s
total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the
number of Warrant Shares that the Company was required to deliver to the Holder
in connection with the exercise at issue times (B) the price at which the sell
order giving rise to such purchase obligation was executed, and (2) at the
option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored or deliver to
the Holder the number of shares of Common Stock that would have been issued had
the Company timely complied with its exercise and delivery obligations
hereunder. For example, if the Holder purchases Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (1) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.

    

    (v)           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 at its election, either pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Exercise Price or
round up to the next whole share.

     

    
      
         

      

      
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    (vi)          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.

    

    (vii)         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.

    
      
         

      

      
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    Section 3. Certain
Adjustments.

    

    (a)           Stock Dividends and
Splits. If the Company, at any time while this Warrant is outstanding:
(A) pays a stock dividend or otherwise make a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (B) subdivides outstanding shares of Common Stock into a larger number
of shares, (C) combines (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares, or (D) issues by
reclassification of shares of the Common Stock any shares of capital stock of
the Company, then in each case the Exercise Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment
made pursuant to this Section 3(a) shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

    

    (b)           Subsequent Equity
Sales. If the Company or any Subsidiary thereof, as applicable, at any
time while this Warrant is outstanding, shall sell or grant any option to
purchase, or sell or grant any right to reprice, or otherwise dispose of or
issue (or announce any offer, sale, grant or any option to purchase or other
disposition) any Common Stock or Common Stock Equivalents (as defined below)
entitling any Person to acquire shares of Common Stock, at an effective price
per share less than the then Exercise Price (such lower price, the “Base Share Price” and
such issuances collectively, a “Dilutive Issuance”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective
price per share which is less than the Exercise Price, such issuance shall be
deemed to have occurred for less than the Exercise Price on such date of the
Dilutive Issuance), then the Exercise Price shall be reduced and only reduced to
equal the Base Share Price and the number of Warrant Shares issuable hereunder
shall be increased such that the aggregate Exercise Price payable hereunder,
after taking into account the decrease in the Exercise Price, shall be equal to
the aggregate Exercise Price prior to such adjustment. Such adjustment shall be
made whenever such Common Stock or Common Stock Equivalents are issued.
Notwithstanding the foregoing, no adjustments shall be made, paid or issued
under this Section 3(b) in respect of an Exempt Issuance (as defined in the
Purchase Agreement). The Company shall notify the Holder in writing, no later
than the Trading Day following the issuance of any Common Stock or Common Stock
Equivalents subject to this Section 3(b), indicating therein the applicable
issuance price, or applicable reset price, exchange price, conversion price and
other pricing terms (such notice the “Dilutive Issuance
Notice”). For purposes of clarification, whether or not the Company
provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the
occurrence of any Dilutive Issuance, after the date of such Dilutive Issuance
the Holder is entitled to receive a number of Warrant Shares based upon the Base
Share Price regardless of whether the Holder accurately refers to the Base Share
Price in the Notice of Exercise. “Common Stock
Equivalents” means a security, howsoever denominated, which is
convertible into or exercisable for shares of the Company’s Common
Stock.

    

    (c)           Subsequent Rights
Offerings. If the Company, at any time while the Warrant is outstanding,
shall issue rights, options or warrants to all holders of Common Stock (and not
to Holder) entitling them to subscribe for or purchase shares of Common Stock at
a price per share less than the VWAP at the record date mentioned below, then
the Exercise Price shall be multiplied by a fraction, of which the denominator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of additional shares of
Common Stock offered for subscription or purchase, and of which the numerator
shall be the number of shares of the Common Stock outstanding on the date of
issuance of such rights or warrants plus the number of shares which the
aggregate offering price of the total number of shares so offered (assuming
receipt by the Company in full of all consideration payable upon exercise of
such rights, options or warrants) would purchase at such VWAP. Such adjustment
shall be made whenever such rights or warrants are issued, and shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such rights, options or warrants.

     

    
      
         

      

      
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    (d)           Pro Rata
Distributions. If the Company, at any time while this Warrant is
outstanding, shall distribute to all holders of Common Stock (and not to the
Holder of the Warrants) evidences of its indebtedness or assets (including cash
and cash dividends) or rights or warrants to subscribe for or purchase any
security other than the Common Stock (which shall be subject to Section 3(b)),
then in each such case the Exercise Price shall be adjusted by multiplying the
Exercise Price in effect immediately prior to the record date fixed for
determination of stockholders entitled to receive such distribution by a
fraction of which the denominator shall be the VWAP determined as of the record
date mentioned above, and of which the numerator shall be such VWAP on such
record date less the then per share fair market value at such record date of the
portion of such assets or evidence of indebtedness so distributed applicable to
one outstanding share of the Common Stock as determined by the Board of
Directors in good faith. In either case the adjustments shall be described in a
statement provided to the Holder of the portion of assets or evidences of
indebtedness so distributed or such subscription rights applicable to one share
of Common Stock. Such adjustment shall be made whenever any such distribution is
made and shall become effective immediately after the record date mentioned
above.

    

    (e)           Fundamental
Transaction. If, at any time while this Warrant is outstanding, (A) the
Company effects any merger or consolidation of the Company with or into another
Person, (B) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (C) any tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (D) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (in any such case, a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and any additional consideration (the “Alternate
Consideration”) receivable as a result of such 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. For purposes
of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the
securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such Fundamental
Transaction. To the extent necessary to effectuate the foregoing provisions, any
successor to the Company or surviving entity in such Fundamental Transaction
shall issue to the Holder a new warrant consistent with the foregoing provisions
and evidencing the Holder’s right to exercise such warrant into Alternate
Consideration. The terms of any agreement pursuant to which a Fundamental
Transaction is effected shall include terms requiring any such successor or
surviving entity to comply with the provisions of this Section 3(e) and insuring
that this Warrant (or any such replacement security) will be similarly adjusted
upon any subsequent transaction analogous to a Fundamental Transaction.
Notwithstanding anything to the contrary, in the event of a Fundamental
Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction”
as defined in Rule 13e-3 under the Securities Exchange Act of 1934, as amended,
or (3) a Fundamental Transaction involving a person or entity not traded on a
national securities exchange, the Nasdaq Global Select Market, the Nasdaq Global
Market, or the Nasdaq Capital Market, the Company or any successor entity shall
pay at the Holder’s option, exercisable at any time concurrently with or within
thirty (30) days after the consummation of the Fundamental Transaction, an
amount of cash equal to the value of this Warrant as determined in accordance
with the Black Scholes Option Pricing Model obtained from the “OV” function on
Bloomberg L.P. using (i) a price per share of Common Stock equal to the VWAP of
the Common Stock for the Trading Day immediately preceding the date of
consummation of the applicable Fundamental Transaction, (ii) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period equal to the
remaining term of this Warrant as of the date of consummation of the applicable
Fundamental Transaction and (iii) an expected volatility equal to the 100 day
volatility obtained from the “HVT” function on Bloomberg L.P. determined as of
the Trading Day immediately following the public announcement of the applicable
Fundamental Transaction.

     

    
      
         

      

      
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    (f)           Adjustment to Number of
Warrant Shares.  If the Exercise Price is reduced pursuant to
the preceding provisions of this Section 3, the number of shares issuable on
exercise of the Warrants shall be increased to a number of shares (the “Adjusted Warrant Shares
Number”) such that the aggregate Exercise Price (after taking into
account such reduction) for the Adjusted Warrant Shares Number shall be equal to
the aggregate Exercise Price (immediately before such reduction) for the Warrant
Shares issuable on exercise of the Warrants prior to the adjustment contemplated
by this clause (g) (for purposes of all such calculations, all Warrants shall be
assumed to be fully exercisable without regard to any limitations, restrictions
or conditions that may be provided herein or in any other provision of any of
the Transaction Agreements).

    

    (g)          Calculations. All
calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.

    

    (h)          Notice to
Holder.

    

    (i)  
         Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly mail to the Holder a notice
setting forth the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment. If the Company enters into a
Variable Rate Transaction (as defined below), despite the prohibition thereon in
the Purchase Agreement, the Company shall be deemed to have issued Common Stock
or Common Stock Equivalents at the lowest possible conversion or exercise price
at which such securities may be converted or exercised. “Variable Rate
Transaction” means a transaction effected by the Company after the
Original Issue Date (other than and Exempt Issuance) in which the Company issues
securities, howsoever denominated,  which provide for a variable
conversion price or a variable exercise price.

    

    (ii)           Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock; (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock; (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights; (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs of the
Company; then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register (as defined
below) of the Company, at least twenty (20) calendar days prior to the
applicable record or effective date hereinafter specified, a notice stating (x)
the date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be taken,
the date as of which the holders of the Common Stock of record to be entitled to
such dividend, distributions, redemption, rights or warrants are to be
determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of the Common Stock
of record shall be entitled to exchange their shares of the Common Stock for
securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer or share exchange; provided that the
failure to mail such notice or any defect therein or in the mailing thereof
shall not affect the validity of the corporate action required to be specified
in such notice. The Holder is entitled to exercise this Warrant during the
period commencing on the date of such notice to the effective date of the event
triggering such notice.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Section
4.              Transfer of
Warrant.

    

    (a)           Transferability.
Subject to compliance with any applicable securities laws, this Warrant and all
rights hereunder (including, without limitation, any registration rights) are
transferable, in whole or in part, upon surrender of this Warrant at the
principal office of the Company or its designated agent, 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)           New Warrants. 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 4(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. All Warrants issued on transfers or exchanges shall reflect
the Original Issue Date and shall be identical with this Warrant except as to
the number of Warrant Shares issuable pursuant thereto and any other adjustments
made pursuant to the provisions of this Warrant, including adjustments made
pursuant to Section 3 hereof.

    

    (c)           Warrant Register. The
Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time. The Company may deem
and treat the registered Holder of this Warrant as the absolute owner hereof for
the purpose of any exercise hereof or any distribution to the Holder, and for
all other purposes, absent actual notice to the contrary.

    

    Section
5               Registration
Rights.   (a)  Reference is made to the
Registration Rights Agreement (as that term is defined in the Purchase
Agreement).  The Company’s obligations under the Registration Rights
Agreement and the other terms and conditions thereof with respect to the Warrant
Shares, including, but not necessarily limited to, the Company’s commitment to
file a registration statement including the Warrant Shares, to have the
registration of the Warrant Shares completed and effective, and to maintain such
registration, are incorporated herein by reference.

    

    (b)  In
addition to the registration rights referred to in the preceding provisions of
Section 5, effective after the expiration of the effectiveness of the
Registration Statement as contemplated by the Registration Rights Agreement, the
Holder shall have demand piggy-back registration rights with respect to the
Warrant Shares then held by the Holder or then subject to issuance upon exercise
of this Warrant (collectively, the “Remaining Warrant Shares”), subject to the
conditions set forth below. If, at any time after the Registration Statement has
ceased to be effective, the Company participates (whether voluntarily or by
reason of an obligation to a third party) in the registration of any shares of
the Company’s stock, the Company shall give written notice thereof to the Holder
and the Holder shall have the right, exercisable within ten (10) business days
after receipt of such notice, to demand inclusion of all or a portion of the
Holder’s Remaining Warrant Shares in such registration statement.  If
the Holder exercises such election, the Remaining Warrant Shares so designated
shall be included in the registration statement at no cost or expense to the
Holder (other than any costs or commissions which would be borne by the Holder
under the terms of the Registration Rights Agreement).  The Holder’s
rights under this Section 7.2 are subject to the following
conditions:  if there is a managing underwriter of the offering of
shares referred to in the registration statement and such managing underwriter
advises the Company in writing that the number of shares proposed to be included
in the offering will have an adverse effect on its ability to successfully
conclude the offering and, as a result, the number of shares to be included in
the offering is to be reduced, the number of Remaining Warrant Shares of the
Holder which were to be included in the registration (before such reduction)
will be reduced pro rata with the number of shares included for all other
parties whose shares are being registered

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Section
6.               Miscellaneous.

    

    (a)           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 as set forth in Section 2(e) (i) or other relevant provision of this
Warrant.

    

    (b)           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.

    

    (c)           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 not be a
Business Day, then such action may be taken or such right may be exercised on
the next succeeding Business Day.

    

    (d)           Authorized
Shares.

    

    (i)     
      Reservation. The
Company covenants that it will at all times reserve and keep available out of
its authorized and unissued shares of Common Stock for the sole purpose of
issuance upon exercise of this Warrant, as herein provided, free from preemptive
rights or any other actual contingent purchase rights of Persons other than the
Holder (and the other holders of the Debentures and Warrants), not less than
such aggregate number of shares of the Common Stock (the “Reserved Amount”) as
shall (subject to the terms and conditions set forth in the Purchase Agreement)
be issuable (taking into account the adjustments of Section 3) upon the exercise
of the outstanding portion of this Warrant through and including the Termination
Date.  Such reserved shares are in addition to, and not in lieu of,
shares which may be reserved for the Holder and such other holders of the
Debentures and Warrants.

    

    (ii)           Determination of Reserved
Amount. The Reserved Amount shall be determined on the Original Issue
Date and on each date (each, an “Adjustment Date”), if
any, on which an adjustment to the Exercise Price is made pursuant to Section 3
hereof (each such determination date, a “Reserved Share Determination
Date”), and the number of shares to be reserved shall be based on all
outstanding Warrants as of such Reserved Share Determination Date. The Reserved
Amount determined on such date shall remain the Reserved Amount until the next
Adjustment Date, if any. The Company shall give written instructions to the
Transfer Agent to reserve for issuance to the Holder the number of shares equal
to the Reserved Amount.  The Company will, at the request of the
Holder, provide written confirmation, certified by an executive officer of the
Company, of the number of shares then reserved for the Holder and that the
instructions referred to in this Section 6(d) (ii) have been given to the
Transfer Agent.

    

    (iii)          Due Authorization.
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 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. 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 created by the Company in respect of the
issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue).

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (e)          Certain
Covenants.

    

    (i)      
     Certain Actions.
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.

    

    (ii)           Corporate
Authorizations. 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.

    

    (f)           Governing Law; Jurisdiction;
Jury Trial. All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be governed by and
construed and enforced in accordance with the internal laws of the State of
Nevada, without regard to the principles of conflict of laws thereof. Each party
agrees that all legal proceedings concerning the interpretation, enforcement and
defense of the transactions contemplated by any of the Transaction Documents
(whether brought against a party hereto or its respective Affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and
federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”).
Each party hereto hereby irrevocably submits to the exclusive jurisdiction of
the New York Courts for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of such New York Courts, or such New York Courts are improper or
inconvenient venue for such proceeding. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Warrant and agrees that such
service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by applicable law. Each party
hereto hereby irrevocably waives, to the fullest extent permitted by applicable
law, any and all right to trial by jury in any legal proceeding arising out of
or relating to this Warrant or the transactions contemplated hereby. If either
party shall commence an action or proceeding to enforce any provisions of this
Warrant, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its attorney’s fees and other costs and
expenses incurred in the investigation, preparation and prosecution of such
action or proceeding.

    

    (g)          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.

    

    (h)          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 the
fact that 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.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (i)           Notices. Any notice,
request or other document required or permitted to be given or delivered to the
Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

    

    (j)           Limitation of
Liability. No provision hereof, in the absence of any affirmative action
by Holder to exercise this Warrant to 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.

    

    (k)          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 and not to assert the
defense in any action for specific performance that a remedy at law would be
adequate.

    

    (l)           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 the Holder or holder of Warrant Shares.

    

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

    

    (n)          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.

    

    This
warrant is subject to the execution of a Private Equity Agreement, Security
Purchase Agreement, or similar Agreement between the parties.

    

    [Balance
of page intentionally left blank]

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    (o)          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 and shall not
control or affect the meaning or construction of any of the provisions
hereof.

    

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

    

    Dated:
July 26, 2010

     

    
      
        
          
            
              
                	 	
                        Marketing
      Worldwide Corporation

                      
	 	 	 
	 
      	
                        By: Michael Winzkowski, CEO & President

                      
	 
      	 
      	 
      
	 
      	
                        /s/  Michael
      Winzkowski

                      	 
      
	 
      	 
      	 
      
	 
      	
                        Facsimile
      No. for delivery of Notices:

                      
	 
      	 
      	 
      
	 
      	
                        517-540-0923
      and
310-822-1633

                      

              

            

          

        

      

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    ANNEX
A

    

    Marketing
Worldwide Corporation

    

    NOTICE OF
EXERCISE

    (To be
Executed by the Registered Holder in Order to Convert the
Debenture)

    

    TO:         Marketing
Worldwide Corporation

    . VIA
FAX:  (____) ____-_______________

    Attn: CEO or President

    

    The undersigned hereby irrevocably
elects to exercise the right, represented by the Common Stock Purchase Warrant
dated as of _____________, (the “Warrant”) to purchase
_______________ shares (“Exercise Shares”) of
the Common Stock, $0.001 par value (“Common Stock”), and
tenders herewith payment in accordance with Section 2 of said Common Stock
Purchase Warrant, as follows:

    

    9           CASH:  
$                                                         =
(Exercise Price x Exercise Shares)

    

    Payment is being made by:

    enclosed
check

    wire transfer

    other

    9           CASHLESS
EXERCISE:

    

    Net number of Warrant Shares to be
issued to Holder
:           _________*

    

    * based
on:           (A-B) x
(X)

          A

    where:

    VWAP on the Trading Day immediately
preceding

    the date of such election
[A]                                      =           $_______________

    Exercise Price of this Warrant, as
adjusted
[B]           =           $_______________

    Exercise Shares1
[X]                                                                =           ________________

    

    It is the intention of the Holder to
comply with the provisions of Section 2(d) of the Warrant regarding certain
limits on the Holder's right to exercise thereunder.  The Holder
believes this exercise complies with the provisions of said Section
2(d).  Nonetheless, to the extent that, pursuant to the exercise
effected hereby, the Holder would have more shares than permitted under said
Section, this notice should be amended and revised, ab initio, to refer to the
exercise which would result in the issuance of shares consistent with such
provision. Any exercise above such amount is hereby deemed void and
revoked.

    

    As contemplated by the Warrant, this
Notice of Exercise is being sent by facsimile to the telecopier number and
officer indicated above.

    

    The certificates representing the
Warrant Shares should be transmitted by the Company to the Holder

     

      
        

      

    

    1The
number of Exercise Shares is equal to the number of Warrant Shares issuable upon
exercise of this Warrant in accordance with the terms of this Warrant by means
of a cash exercise rather than a cashless exercise.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    via
express courier, or by electronic transfer after receipt of this Notice of
Exercise (by facsimile transmission or otherwise) to:

    

    _____________________________________

    _____________________________________

    _____________________________________

    

    The undersigned Holder  is an
“accredited investor” as defined in Regulation D promulgated under the
Securities Act of 1933, as amended

    

    Dated:
______________________

    

    
      
        
          	 
      
	
                  [Print
      Name of Holder]

                

        

      

    

    

    
      
        
          	
                  By:

                	 
      	 
      

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    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, [____] all of or [_______] shares of 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.10.4    Employment
Agreement with Chuck Pinkerton

    

    EMPLOYMENT
AGREEMENT

    

    THIS EMPLOYMENT
AGREEMENT is made and entered into as of this 20th day of
July, 2010, by and between MARKETING WORLDWIDE CORP, a Nevada corporation, whose
address is 2212 Grand Commerce Dr., Howell, Michigan 48855 (hereinafter referred
to as "Employer") and Chuck
Pinkerton, whose address is 2653 Cades Cove, Brighton, MI 48114
(hereinafter referred to as "Employee").

    

    WITNESSETH

    

    WHEREAS,
Employer wishes to secure the employment of Employee upon the terms and
conditions hereinafter set forth; and

    

    WHEREAS,
Employer is engaged in the business of the development, design, marketing and
sale of automotive accessories to select global customers; and

    

    WHEREAS,
Marketing WorldWide is seeking employee’s services as its CEO, including
services to instigate and supervise sales and marketing and general operations
of the company.

    

    WHEREAS,
the business of the development, design and supply of automotive accessories to
the customers is highly competitive and the success of Employer depends in great
part of the development, maintenance and retention of its Trade Secrets (as
defined in Paragraph 7); and

    

    WHEREAS,
Employer has compiled and continues to supplement its Trade Secrets;
and

    

    WHEREAS,
the unauthorized use, disclosure or appropriation of Employer's Trade Secrets by
Employee during or after Employee's employment with Employer would cause such
irreparable damage to Employer that Employer has taken preventative measures,
including the execution of this Agreement and similar agreements and the
observance of operating practices designed to secure and restrict the
dissemination of its Trade Secrets; and

    

    WHEREAS,
Employee acknowledges that the Trade Secrets to be disclosed to Employee during
the course of employment are of such value and importance to Employer that it is
reasonably necessary to restrict Employee from any business related contact or
relationship whatsoever with certain Customers and employees of Employer and
from disclosing, appropriating or using Employer's Trade Secrets without
Employer's permission both during employment and thereafter, regardless of the
reasons for termination of the employment relationship; and

    

    WHEREAS,
Employer and Employee wish to have an employment relationship on the basis of
the premises recited above, the attached job description and according to the
specific provisions set forth below;

    

    NOW,
THEREFORE, in consideration of the above recitals of fact (which recitals are
hereby incorporated as covenants of the parties hereto) and the several
promises, covenants and agreements hereinafter set forth, the parties agree as
follows:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.           Employment.  The
Employer hereby employs Employee and Employee hereby accepts such employment, in
accordance with the terms and conditions hereinafter set forth.

    

    2.           Employment
Term.  The term of this Agreement shall commence on July 20,
2010 ("Commencement Date") and shall terminate on July 20, 2011. ("Termination
Date"), or on Employee's death or any other termination of this Agreement,
whichever is first to occur.  If Employee continues employment beyond
the termination date of Employee's contract and the parties hereto have not
executed a subsequent Employment Agreement, such continued employment shall
continue on the same terms and conditions as set forth in this Agreement, until
the parties execute a new Employment Agreement.

    

    3.           Duties
and Responsibilities.  During the term of this Agreement,
Employee will serve as CEO.  Employee will have the responsibility
customarily associated with the position of a CEO in a publically traded
company. Employee shall perform other services, especially in regards to sales
and marketing and the general operations of the company as Employer may, at its
sole and absolute discretion, deem necessary and appropriate in the furtherance
of Employer's business and as specified in, but not limited to the job
description.   Employee will report to the Board of Directors of
the company. Employee agrees to adhere to all rules and policies established by
Employer.

    

    4.           Full-Time
Effort/Extent of Service.  Employee agrees that he will at all
times, faithfully, industriously and to the best of his ability, experience and
talents, perform all of his duties and responsibilities hereunder and devote his
full-time attention and energy to the business of the Employer.

    

    5.           Compensation.  As
compensation for services rendered under this Agreement:

    

    
      	
               
      

            	
              (a)

            	
              The
      Employer shall pay Employee a salary of $5,000 per month,  less
      withholding as required by law;

            

    

    
      	
               
      

            	
              (b)

            	
              A
      signing bonus of 100,000 stock options vested in equal allocations over
      one year at an exercise price as of the date of
  grant.

            

    

    
      	
               
      

            	
              (c)

            	
              Compensation
      will be reevaluated after the first 60 days and after 120 days and new
      compensation levels will be mutually agreed
  upon.

            

    

    
      	
               
      

            	
              (d)

            	
              An
      additonal issuance of 1,000,000 shares after the second evaluation period
      of 120 days vesting in equal portions over two
  years.

            

    

    
      	
               
      

            	
              (e)

            	
              Employee
      will be eligible to participate in the Management Stock Option Plan, the
      details of which will be mutually agreed upon and become part of this
      agreement

            

    

    
      	
               
      

            	
              (f)

            	
              Employer
      may, in its sole and absolute discretion, pay Employee additional
      compensation (bonuses) for services performed in connection with this
      Agreement;

            

    

    
      	
               
      

            	
              (g)

            	
              In
      addition to the Employee's Salary, the Employee shall be entitled to
      medical and vacation benefits as established by the company for all
      employees.

            

    

    

    6.           Death
During Employment.  If Employee should die during the term of
this employment, the Employer shall pay to Employee's estate the compensation
which would otherwise be payable to him up to the end of the month in which his
death occurs.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.           Confidentiality.
Employee acknowledges and agrees that Employee will be performing certain
services that involve access to confidential information concerning the Employer
and its operations relating to design and development, customer lists or
customer contacts, pricing formulas, internal business forms, technical
procedures, services, marketing strategies or plans of the Employer or its
clients, matters of a technical or business nature, which the Employer has
expended substantial resources in developing and cultivating ("Trade Secrets"),
Employee agrees that he shall not, either during the term of this Agreement or
anytime thereafter, use or disclose any Trade Secrets of Employer or any other
proprietary information, knowledge or data concerning the operations, business
affairs or practices of the Employer, its clients and others doing business with
it.

    

    8.           Breach of
Trust.  Employee acknowledges that he will learn and come in
contact with certain proprietary information or facilities that Employer
considers Trade Secrets.  Employee understands that if, either during
employment or anytime thereafter, Employee discloses to others or uses for
Employee's own benefit or copies or makes notes of any of these Trade Secrets
and disseminates or uses the same, such conduct will constitute a breach of the
confidence and trust bestowed on Employee by Employer and which may result in
Employee being liable to Employer for damages.

    

    9.           Business
Records.  Employee agrees that all documents, reports,
memoranda, files, manuals, books, writings, materials, computer software
programs, disks and other data storage or processing media, and all copies
thereof, which contain any confidential information (collectively "Business
Records") are the sole and exclusive property of the Employer and shall remain
as such upon termination of Employee's employment with Employer (regardless of
whether such business records were created, modified or developed, in whole or
in part, by Employee).  At no time during Employee's employment with
the Employer or following the termination thereof, shall Employee have any right
or privilege of copying or obtaining any Business Records for any purpose
whatsoever and no Business Records shall be removed from the office of the
company, without the prior written consent of the president of
Employer.

    

    10.         Authorization.  Employee
authorizes Employer to perform a back ground check on employee, conducted by a
professional service company and agrees to supply references to employer on
request.

    

    11.         Covenant
Not to Compete.  Employee agrees that during the term of
Employee’s employment and for an eighteen (18) months period following the
termination of his employment, he will not, for any reason whatsoever, directly
or indirectly (whether as an employee, agent, representative, consultant,
independent contractor or in any capacity of another company or otherwise) (i)
contact, solicit or attempt to solicit, any client, customer, agent,
representative or employee of the Employer, (ii) perform the same or similar
services performed by Employer for any of Employer’s current customers or former
customers for whom Employer has performed such services, or (iii) otherwise
interfere with or attempt in any manner to disrupt any relationship or agreement
between the company and any of its clients, customers, employees, agents,
representatives or others doing business with the company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12.         Termination
of Employment.  Employee agrees and understands that his
employment with the Employer is and shall always remain "AT
WILL."  This means that the company, after the end of the first term,
may terminate Employee's employment at any time, with or without cause with a
two (2) week notice, for any or no reason whatsoever.  During the
first four (4) months of the agreement, either party may terminate this
agreement with seven (7) day notice and without cause. Nothing in this Agreement
shall be construed to require the Employer to terminate the Employee's
employment for "just cause."  Employee acknowledges and understands
that under no circumstances whatsoever shall verbal statements made by any
individual employed by or affiliated with Employer, including without
limitation, the owner, president, chairman of the board of directors or any
other individual, alter or in any way modify the "at will" nature of Employee's
employment.  Employee further acknowledges that the only allowable
method to alter, change or modify the "at will" nature of this Employment
Agreement and Employee's employment with Employer is through the mutual assent
of Employer and Employee in writing.  No representative of the company
has the authority to enter into any agreement or promise to employ Employee on
any terms and conditions different from those set forth herein, except the
president of the company and then only when done so by written agreement signed
by the president and employee.

    

    13.         Rights of
Employee Upon Termination.  In the event that Employee is
terminated, Employee shall only be entitled to receive the unpaid salary accrued
to the date of termination.  The amounts paid to Employee by Employer
shall be as full settlement of its obligations to Employee
hereunder.

    

    14.         Forfeiture
of Benefits.  In the event Employee breaches any provision of
this Agreement, Employee will forfeit his right to further participation in any
of Employer's benefit packages or plans.  This provision shall not be
construed and is not intended to be a limitation upon any other remedy that
Employer may have for breach of this Agreement.

    

    15.         Damages
for Breach of Contract.  In the event of a breach of this
Agreement by either the Employer or the Employee resulting in damages to the
other party, such party may recover from the party in breach hereof any and all
damages that may be sustained, including actual, reasonable attorney fees and
court costs.

    

    16.         Assignment.  The
parties agree that this Agreement is personal to the Employer and that Employee
cannot assign Employee's interest in this Agreement.  The parties
further agree that Employer may assign its interest in this Agreement upon
notification of the same to Employee.

    

    17.         Enforceability.
The Employee expressly agrees and acknowledges that a loss arising from a breach
of any provision under Paragraphs 7, 8, 9, or 10 may not be reasonably and
equitably compensated by money damages.  Therefore, the Employee
agrees that in a case of any such breach, the Employer shall be entitled to
injunctive and/or other extraordinary relief in order to prevent the Employee
from engaging in any of the foregoing prohibited activities, which relief shall
be cumulative and in addition to any and all other additional remedies to which
the Employer may be entitled to at law or equity.  In the event that
any court of competent jurisdiction shall determine that any part or all of the
provisions of Paragraphs 7, 8, 9, or 10 are unenforceable or invalid due to the
scope of the activities restrained, the geographical extent of the restraints
imposed, the duration of the restraints imposed, or otherwise, the Parties
hereby expressly intend, agree and stipulate that under such circumstances, the
provisions of Paragraph 7, 8, 9, or 10 shall be enforceable to the fullest
extent and scope permitted by law and that the Parties shall be bound by any
judicial modifications to the provisions therein which said court of competent
jurisdiction may make in order to carry out the intentions of the Parties as
provided herein.

    

    18.         Counsel/Ambiguity.  Each
party hereto agrees, represents and acknowledges that such party (i) is entering
into this Agreement voluntarily, after and due consideration, (ii) has read this
Agreement and the Exhibits and documents delivered concurrently herewith and
fully understands all the terms and conditions thereof and the ramifications and
consequences of same, and (iii) has received the advice and counsel of such
party's own attorney prior to entering into this Agreement and any Exhibits and
documents delivered concurrently herewith.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    19.         Severability.  It
is agreed that if any part, term or provision of this Agreement is held by the
courts or any other governing tribunal to be illegal or in conflict with any
law, rule or regulation then, the validity of the remaining portions or
provisions shall not be affected and the rights and obligations of both parties
hereto shall be construed and enforced as if this Agreement did not contain the
particular part, term or provision held to be invalid.

    

    20.         Notices.  All
notices given shall be in writing and shall be sent by registered or certified
mail to the parties at their respective addresses set forth above or such other
addresses as either party may make known to the other.

    

    21.         Entire
Agreement.  This Agreement embodies the entire agreement
between the Employer and Employee.  There are no other promises,
terms, conditions or obligations other than those contained herein and this
Agreement shall supersede all previous communications, representations or
agreements, either verbal or written, between the parties hereto or their
agents.

    

    22.         Captions.  The
captions contained in this Agreement are for reference only and do not form a
substantive part of this Agreement and shall not restrict or enlarge the
substantive provisions of this Agreement.

    

    23.         Written
Modification.  There shall be no modification of this
Agreement, except in writing, and executed with the same formalities as this
Agreement.  No persons other than Employer and Employee shall have
authority to agree to modify or change this Agreement.

    

    24.         Choice of
Forum.  The parties agree that all actions arising directly or
indirectly out of this Agreement shall be litigated only in the United States
District Court - Eastern District of Michigan or the Wayne County, Michigan
Circuit Court, and the parties hereby consent to the jurisdiction and venue of
those courts over the parties to this Agreement.

    

    25.         Law
Governing.  It is mutually understood and agreed that this
Agreement shall be governed and construed in accordance with the laws of the
State of Michigan both as to interpretation and performance.

     

    ("Employer")   MARKETING
WORLDWIDE CORP

     

    
      
        
          	
                  By:

                	
                  /S/ Michael Winzkowski

                	 
      
	 
      	
                  Michael
      Winzkowski, President

                	 
      

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  ("Employee")

                	
                  /s/ Chuck Pinkerton

                	 
      
	 
      	
                  Chuck
      Pinkerton

                	 
      

        

      

    

    

    APPEDIX
A

    Job
Description

    

    Typical
responsibilities of a CEO

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