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                                                                     Exhibit 4.4

                   CERTIFICATE OF DESIGNATION OF THE RELATIVE
                             RIGHTS AND PREFERENCES
                                     OF THE
                      SERIES A CONVERTIBLE PREFERRED STOCK
                                       OF
                         MARKETING WORLDWIDE CORPORATION

      The undersigned, the Chief Executive Officer of Marketing Worldwide
Corporation, a Delaware corporation (the "COMPANY"), in accordance with the
provisions of the Delaware General Corporation Law, does hereby certify that,
pursuant to the authority conferred upon the Board of Directors by the
Certificate of Incorporation of the Company, the following resolution creating a
series of preferred stock, designated as Series A Convertible Preferred Stock,
was duly adopted on April 20, 2007 (the "ISSUANCE DATE"), as follows:

      RESOLVED, that pursuant to the authority expressly granted to and vested
in the Board of Directors of the Company by provisions of the Certificate of
Incorporation of the Company (the "CERTIFICATE OF INCORPORATION"), there hereby
is created out of the shares of the Company's preferred stock, par value $0.001
per share, of the Company authorized in SECTION 4 of the Certificate of
Incorporation (the "PREFERRED STOCK"), a series of Preferred Stock of the
Company, to be named "Series A Convertible Preferred Stock," consisting of Three
Million Five Hundred Thousand shares, which series shall have the following
designations, powers, preferences and relative and other special rights and the
following qualifications, limitations and restrictions:

      1.    DESIGNATION AND RANK. The designation of such series of the
Preferred Stock shall be the Series A Convertible Preferred Stock, par value
$0.001 per share (the "SERIES A PREFERRED STOCK"). The maximum number of shares
of Series A Preferred Stock shall be Three Million Five Hundred Thousand
(3,500,000) shares. The Series A Preferred Stock shall rank senior to the
Company's common stock, par value $0.001 per share (the "COMMON STOCK"), and to
all other classes and series of equity securities of the Company which by their
terms do not rank senior to the Series A Preferred Stock ("JUNIOR STOCK"). The
Series A Preferred Stock shall be subordinate to and rank junior to all
indebtedness of the Company now or hereafter outstanding.

      2.    DIVIDENDS

            (a)   PAYMENT OF DIVIDENDS. Commencing on the date of the initial
issuance (the "ISSUANCE DATE") of the Series A Preferred Stock, the holders of
record of shares of Series A Preferred Stock shall be entitled to receive, out
of any assets at the time legally available therefor and as declared by the
Board of Directors, dividends at the rate of nine percent (9%) of the stated
Liquidation Preference Amount (as defined in SECTION 4 hereof) per share PER
ANNUM (the "DIVIDEND PAYMENT"), and no more, payable quarterly (unless converted
by the holder pursuant to SECTION 5(A) hereof prior to the date the applicable
Dividend Payment is due) commencing on April 30, 2007 and the last business day
of each subsequent calendar quarter period. At the option of the Company,
Dividend Payments may be in cash or registered shares of Common Stock. Upon the
payment of any dividend on the Series A Preferred Stock in registered shares of
Common Stock, the number of shares of Common Stock to be issued to the holder
shall be an amount equal to the quotient of (i) the Dividend Payment DIVIDED BY
(ii) eighty-five percent (85%) of the average of the VWAP (as defined below) for
the twenty (20) trading days immediately preceding the date the Dividend Payment
is due, but in no event less than $0.50; PROVIDED, HOWEVER, if the average
trading volume in the Common Stock is greater than 30,000 shares per day during
such twenty (20) trading day period, the number of shares of Common Stock to be

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issued to the holder shall be an amount equal to the quotient of (x) the
Dividend Payment DIVIDED BY (y) the average of the Closing Bid Prices (as
defined in SECTION 5(B)(V)) for the twenty (20) trading days immediately
preceding the date the Dividend Payment is due. For purposes hereof, "VWAP"
shall mean, for any date, (i) the daily volume weighted average price of the
Common Stock for such date on the OTC Bulletin Board as reported by Bloomberg
Financial L.P. ("BLOOMBERG") (based on a trading day from 9:30 a.m. Eastern Time
to 4:02 p.m. Eastern Time); (ii) if the Common Stock is not then listed or
quoted on the OTC Bulletin Board and if prices for the Common Stock are then
reported in the "Pink Sheets" published by the Pink Sheets, LLC (or a similar
organization or agency succeeding to its functions of reporting prices), the
most recent bid price per share of the Common Stock so reported; or (iii) in all
other cases, the fair market value of a share of Common Stock as determined by
an independent appraiser selected in good faith by the Holder and reasonably
acceptable to the Company. Any shares of Common Stock issued as a Dividend
Payment shall have piggyback registration rights if not otherwise registered
pursuant to an effective registration statement. Dividends on the Series A
Preferred Stock shall be cumulative and shall accrue and be payable quarterly.
In the case of shares of Series A Preferred Stock outstanding for less than a
full quarter, dividends shall be pro rated based on the portion of each quarter
during which such shares are outstanding. Dividends on the Series A Preferred
Stock are prior and in preference to any declaration or payment of any
Distribution (as defined below) on any outstanding shares of Junior Stock. Such
dividends shall accrue on each share of Series A Preferred Stock from day to day
whether or not earned or declared so that if such dividends with respect to any
previous dividend period at the rate provided for herein have not been paid on,
or declared and set apart for, all shares of Series A Preferred Stock at the
time outstanding, the deficiency shall be fully paid on, or declared and set
apart for, such shares on a PRO RATA basis with all other equity securities of
the Company ranking PARI PASSU with the Series A Preferred Stock as to the
payment of dividends before any Distribution shall be paid on, or declared and
set apart for, Junior Stock.

            (b)   So long as any shares of Series A Preferred Stock are
outstanding, the Company shall not declare, pay or set apart for payment any
dividend or make any Distribution on any Junior Stock (other than dividends or
Distributions payable in additional shares of Junior Stock), unless at the time
of such dividend or Distribution the Company shall have paid all accrued and
unpaid dividends on the outstanding shares of Series A Preferred Stock.

            (c)   In the event of a dissolution, liquidation or winding up of
the Company pursuant to SECTION 4 hereof, all accrued and unpaid dividends on
the Series A Preferred Stock shall be payable on the date of payment of the
preferential amount to the holders of Series A Preferred Stock. In the event of
(i) a mandatory redemption pursuant to SECTION 9 hereof or (ii) a redemption
upon the occurrence of a Major Transaction (as defined in SECTION 8(C) hereof)
or a Triggering Event (as defined in SECTION 8(D) hereof), all accrued and
unpaid dividends on the Series A Preferred Stock shall be payable on the date of
such redemption. In the event of a voluntary conversion pursuant to SECTION 5(A)
hereof, all accrued and unpaid dividends on the Series A Preferred Stock being
converted shall be payable on the Voluntary Conversion Date (as defined in
SECTION 5(B)(I) hereof).

            (d)   For purposes hereof, unless the context otherwise requires,
"DISTRIBUTION" shall mean the transfer of cash or property without
consideration, whether by way of dividend or otherwise, payable other than in
shares of Common Stock or other equity securities of the Company, or the
purchase or redemption of shares of the Company (other than redemptions set
forth in SECTION 8 below.

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      3.    VOTING RIGHTS

            (a)   GENERAL VOTING RIGHTS. Except with respect to transactions
upon which the Series A Preferred Stock shall be entitled to vote pursuant to
this SECTION 3, and except as otherwise required under Delaware General
Corporation Law, the Series A Preferred Stock shall have no voting rights. The
Common Stock into which the Series A Preferred Stock is convertible shall, upon
issuance, have all of the same voting rights as other issued and outstanding
Common Stock of the Company, and none of the rights of the Preferred Stock.

            (b)   CLASS VOTING RIGHTS. The Series A Preferred Stock shall have
the following class voting rights (in addition to the voting rights set forth in
SECTION 3(A) hereof). So long as any shares of the Series A Preferred Stock
remain outstanding, the Company shall not, without the affirmative vote or
consent of the holders of at least seventy-five percent (75%) of the shares of
the Series A Preferred Stock outstanding at the time, given in person or by
proxy, either in writing or at a meeting at which the holders of the Series A
Preferred Stock vote separately as a class: (i) authorize, create, issue or
increase the authorized or issued amount of any class or series of stock,
including but not limited to the issuance of any more shares of Preferred Stock,
ranking PARI PASSU or senior to the Series A Preferred Stock, with respect to
(A) dividends or Distributions or (B) the Distribution of assets on liquidation,
dissolution or winding up; (ii) amend, alter or repeal the provisions of the
Series A Preferred Stock, whether by merger, consolidation or otherwise, so as
to adversely affect any right, preference, privilege or voting power of the
Series A Preferred Stock; PROVIDED, HOWEVER, that any creation and issuance of
another series of Junior Stock shall not be deemed to adversely affect such
rights, preferences, privileges or voting powers; (iii) repurchase, redeem or
pay dividends on, shares of Common Stock or any other shares of the Company's
Junior Stock (other than DE MINIMUS repurchases from employees of the Company in
certain circumstances, and any contractual redemption obligations existing as of
the date hereof as disclosed in the Company's public filings with the Securities
and Exchange Commission); (iv) amend the Certificate of Incorporation or By-Laws
of the Company so as to affect materially and adversely any right, preference,
privilege or voting power of the Series A Preferred Stock; PROVIDED, HOWEVER,
that any creation and issuance of another series of Junior Stock shall not be
deemed to adversely affect such rights, preferences, privileges or voting
powers; (v) effect any Distribution with respect to Junior Stock other than as
permitted hereby; (vi) reclassify the Company's outstanding securities; (vii)
voluntarily file for bankruptcy, liquidate the Company's assets or make an
assignment for the benefit of the Company's creditors; or (viii) materially
change the nature of the Company's business.

            (c)   APPROVAL OF ACQUISITIONS. So long as any shares of the Series
A Preferred Stock remain outstanding, the Company shall not effect, or agree to
effect, an acquisition or buy out of or with any non-affiliated entity, or a
consolidation or merger of the Company with or into any other corporation or
corporations (or other entity or entities), or a sale of all or substantially
all of the assets of the Company, or the effectuation by the Company of a
transaction or series of related transactions in which more than 50% of the
voting shares of the Company is disposed of or conveyed, without the affirmative
vote or consent of the holders of at least seventy-five percent (75%) of the
shares of the Series A Preferred Stock outstanding at the time given in person
or by proxy, either in writing or at a meeting at which the holders of the
Series A Preferred Stock vote separately as a class.

            (d)   APPROVAL OF REPURCHASE AND REDEMPTION RIGHTS. So long as any
shares of the Series A Preferred Stock remain outstanding, the Company shall
neither enter into any agreement to issue, nor issue, any securities or grants
of options not already in existence as of the date hereof that provide for the

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repurchase or redemption of the Common Stock (or amend any such existing
agreement or instrument to increase the number of shares of the Company's Common
Stock subject to repurchase or redemption), without the affirmative vote or
consent of the holders of at least seventy-five percent (75%) of the shares of
the Series A Preferred Stock outstanding at the time given in person or by
proxy, either in writing or at a meeting at which the holders of the Series A
Preferred Stock vote separately as a class.

      4.    LIQUIDATION PREFERENCE

            (a)   In the event of the liquidation, dissolution or winding up of
the affairs of the Company, whether voluntary or involuntary, the holders of
shares of Series A Preferred Stock then outstanding shall be entitled to
receive, out of the assets of the Company available for Distribution to its
stockholders, an amount equal to one dollar ($1.00) per share (the "LIQUIDATION
PREFERENCE AMOUNT") of the Series A Preferred Stock plus any accrued and unpaid
dividends before any payment shall be made or any assets distributed to the
holders of the Common Stock or any other Junior Stock. If the assets of the
Company are not sufficient to pay in full the Liquidation Preference Amount plus
any accrued and unpaid dividends payable to the holders of outstanding shares of
the Series A Preferred Stock and any series of Preferred Stock or any other
class of stock ranking PARI PASSU, as to rights on liquidation, dissolution or
winding up, with the Series A Preferred Stock, then all of said assets will be
distributed among the holders of the Series A Preferred Stock and the other
classes of stock ranking PARI PASSU with the Series A Preferred Stock, if any,
ratably in accordance with the respective amounts that would be payable on such
shares if all amounts payable thereon were paid in full. The liquidation payment
with respect to each outstanding fractional share of Series A Preferred Stock
shall be equal to a ratably proportionate amount of the liquidation payment with
respect to each outstanding share of Series A Preferred Stock. All payments for
which this SECTION 4(A) provides shall be in cash, property (valued at its fair
market value as determined by an independent appraiser reasonably acceptable to
the holders of a majority of the Series A Preferred Stock) or a combination
thereof; PROVIDED, HOWEVER, that no cash shall be paid to holders of Junior
Stock unless each holder of the outstanding shares of Series A Preferred Stock
has been paid in cash the full Liquidation Preference Amount plus any accrued
and unpaid dividends to which such holder is entitled as provided herein. After
payment of the full Liquidation Preference Amount plus any accrued and unpaid
dividends to which each holder is entitled, such holders of shares of Series A
Preferred Stock will not be entitled to any further participation as such in any
Distribution of the assets of the Company.

            (b)   A consolidation or merger of the Company with or into any
other corporation or corporations (or other entity or entities), or a sale of
all or substantially all of the assets of the Company, or the effectuation by
the Company of a transaction or series of related transactions in which more
than 50% of the voting shares of the Company is disposed of or conveyed, shall
not be deemed to be a liquidation, dissolution, or winding up within the meaning
of this SECTION 4; PROVIDED that the Company shall have obtained the approval of
the holders of the Series A Preferred Shares pursuant to SECTION 3(C) herein. In
the event of the merger or consolidation of the Company with or into another
corporation or corporations (or other entity or entities), the Series A
Preferred Stock shall maintain its relative powers, designations and preferences
provided for herein and no merger or consolidation shall result which is
inconsistent therewith.

            (c)   Written notice of any voluntary or involuntary liquidation,
dissolution or winding up of the affairs of the Company, stating a payment date
and the place where the distributable amounts shall be payable, shall be given
by mail, postage prepaid, no less than forty-five (45) days prior to the payment

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date stated therein, to the holders of record of the Series A Preferred Stock at
their respective addresses as the same shall appear on the books of the Company.

      5.    CONVERSION. The holder of Series A Preferred Stock shall have the
following conversion rights (the "CONVERSION Rights"):

            (a)   RIGHT TO CONVERT. At any time on or after the Issuance Date,
the holder of any such shares of Series A Preferred Stock may, at such holder's
option, subject to the limitations set forth in SECTION 7 herein, elect to
convert (a "VOLUNTARY CONVERSION") all or any portion of the shares of Series A
Preferred Stock held by such person into a number of fully paid and
nonassessable shares of Common Stock equal to the quotient of (i) the
Liquidation Preference Amount of the shares of Series A Preferred Stock being
converted plus any accrued but unpaid dividends thereon DIVIDED BY (ii) the
Conversion Price (as defined in SECTION 5(D) below) in effect as of the date of
the delivery by such holder of its notice of election to convert. In the event
of a notice of redemption of any shares of Series A Preferred Stock pursuant to
SECTION 8 hereof, the Conversion Rights of the shares designated for redemption
shall terminate at the close of business on the last full day preceding the date
fixed for redemption, unless the redemption price is not paid on such redemption
date, in which case the Conversion Rights for such shares shall continue until
such price is paid in full. In the event of a liquidation, dissolution or
winding up of the Company, the Conversion Rights shall terminate at the close of
business on the last full day preceding the date fixed for the payment of any
such amounts distributable on such event to the holders of Series A Preferred
Stock. In the event of such a redemption, the Company shall provide to each
holder of shares of Series A Preferred Stock notice of such redemption, which
notice shall (i) be sent at least fifteen (15) days prior to the termination of
the Conversion Rights (or, if the Company obtains lesser notice thereof, then as
promptly as possible after the date that it has obtained notice thereof) and
(ii) state the amount per share of Series A Preferred Stock that will be paid or
distributed on such redemptions. In the event of such a liquidation, dissolution
or winding up, the Company shall provide to each holder of shares of Series A
Preferred Stock the notice required under SECTION 4(C) above.

            (b)   MECHANICS OF VOLUNTARY CONVERSION. The Voluntary Conversion of
Series A Preferred Stock shall be conducted in the following manner:

                  (i)   HOLDER'S DELIVERY REQUIREMENTS. To convert Series A
Preferred Stock into full shares of Common Stock on any date (the "VOLUNTARY
CONVERSION DATE"), the holder thereof shall (A) transmit by facsimile, or
otherwise deliver, for receipt on or prior to 5:00 p.m., New York time on such
date, a copy of a fully executed notice of conversion in the form attached
hereto as EXHIBIT I (the "CONVERSION NOTICE"), to the Company at (517) 540-0923,
Attention: James Marvin, and (B) surrender to a common carrier for delivery to
the Company as soon as practicable following such Voluntary Conversion Date the
original certificates representing the shares of Series A Preferred Stock being
converted (or an indemnification undertaking with respect to such shares in the
case of their loss, theft or destruction) (the "PREFERRED STOCK CERTIFICATES")
and the originally executed Conversion Notice.

                  (ii)  COMPANY'S RESPONSE. Upon receipt by the Company of a
facsimile copy of a Conversion Notice, the Company shall immediately send, via
facsimile, a confirmation of receipt of such Conversion Notice to such holder.
Upon receipt by the Company of a copy of the fully executed Conversion Notice,
the Company or its designated transfer agent (the "TRANSFER AGENT"), as
applicable, shall, within three (3) business days following the date of receipt
by the Company of the fully executed Conversion Notice, issue and deliver to the

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Depository Trust Company ("DTC") account on the holder's behalf via the Deposit
Withdrawal Agent Commission System ("DWAC") as specified in the Conversion
Notice, registered in the name of the holder or its designee, for the number of
shares of Common Stock to which the holder shall be entitled. Notwithstanding
the foregoing to the contrary, the Company or its Transfer Agent shall only be
obligated to issue and deliver the shares to the DTC on a holder's behalf via
DWAC if such conversion is in connection with a sale and the Company and the
Transfer Agent are participating in DTC through the DWAC system. If the number
of shares of Preferred Stock represented by the Preferred Stock Certificate(s)
submitted for conversion is greater than the number of shares of Series A
Preferred Stock being converted, then the Company shall, as soon as practicable
and in no event later than three (3) business days after receipt of the
Preferred Stock Certificate(s) and at the Company's expense, issue and deliver
to the holder a new Preferred Stock Certificate representing the number of
shares of Series A Preferred Stock not converted.

                  (iii) DISPUTE RESOLUTION. In the case of a dispute as to the
arithmetic calculation of the number of shares of Common Stock to be issued upon
conversion, the Company shall cause its Transfer Agent to promptly issue to the
holder the number of shares of Common Stock that is not disputed and shall
submit the arithmetic calculations to the holder via facsimile as soon as
possible, but in no event later than two (2) business days after receipt of such
holder's Conversion Notice. If such holder and the Company are unable to agree
upon the arithmetic calculation of the number of shares of Common Stock to be
issued upon such conversion within one (1) business day of such disputed
arithmetic calculation being submitted to the holder, then the Company shall
within one (1) business day submit via facsimile the disputed arithmetic
calculation of the number of shares of Common Stock to be issued upon such
conversion to an Independent Appraiser (as defined below) reasonably selected by
the holder; PROVIDED that the Company shall have ten (10) days after receipt of
notice from such holder of its selection of such firm to object thereto, in
which case such holder shall select another such firm and the Company shall have
no such right of objection. The Company shall cause the Independent Appraiser to
perform the calculations and notify the Company and the holder of the results no
later than seventy-two (72) hours from the time it receives the disputed
calculations. Such Independent Appraiser's calculation shall be binding upon all
parties absent manifest error. The costs and expenses of the initial firm
selected as Independent Appraiser shall be paid equally by the Company and the
holder and, in the case of an objection by the Company, the costs and expenses
of the subsequent firm selected as Independent Appraiser shall be paid in full
by the Company. The period of time in which the Company is required to effect
conversions (with respect to the disputed number of shares) or redemptions under
this Certificate of Designation shall be tolled with respect to the subject
conversion or redemption pending resolution of any dispute by the Company made
in good faith and in accordance with this SECTION 5(B)(III). For purposes of
this Certificate of Designation, the term "INDEPENDENT APPRAISER" shall refer to
a nationally recognized or major regional investment banking firm or firm of
independent certified public accountants of recognized standing (which may be
the firm that regularly examines the financial statements of the Company) that
is regularly engaged in the business of appraising the capital stock or assets
of corporations or other entities as going concerns, and which is not affiliated
with either the Company or the holder of any Preferred Stock.

                  (iv)  RECORD HOLDER. The person or persons entitled to receive
the shares of Common Stock issuable upon a conversion of the Series A Preferred
Stock shall be treated for all purposes as the record holder or holders of such
shares of Common Stock on the Conversion Date.

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                  (v)   COMPANY'S FAILURE TO TIMELY CONVERT. If within three (3)
business days of the Company's receipt of an executed copy of the Conversion
Notice (so long as the applicable Preferred Stock Certificates and original
Conversion Notice are received by the Company on or before such third business
day) (the "DELIVERY DATE") the Transfer Agent shall fail to issue and deliver to
a holder the number of shares of Common Stock to which such holder is entitled
upon such holder's conversion of the Series A Preferred Stock or to issue a new
Preferred Stock Certificate representing the number of shares of Series A
Preferred Stock to which such holder is entitled pursuant to SECTION 5(B)(II) (a
"CONVERSION FAILURE"), in addition to all other available remedies which such
holder may pursue hereunder and under the Series A Convertible Preferred Stock
Purchase Agreement (the "PURCHASE AGREEMENT") among the Company and the initial
holders of the Series A Preferred Stock (including indemnification pursuant to
SECTION 6 thereof), the Company shall pay additional damages to such holder on
each business day after such third (3rd) business day that such conversion is
not timely effected in an amount equal 0.5% of the product of (A) the sum of the
number of shares of Common Stock not issued to the holder on a timely basis
pursuant to SECTION 5(B)(II) and to which such holder is entitled and, in the
event the Company has failed to deliver a Preferred Stock Certificate to the
holder on a timely basis pursuant to SECTION 5(B)(II), the number of shares of
Common Stock issuable upon conversion of the shares of Series A Preferred Stock
represented by such Preferred Stock Certificate, as of the last possible date
which the Company could have issued such Preferred Stock Certificate to such
holder without violating SECTION 5(B)(II) TIMES (B) the Closing Bid Price (as
defined below) of the Common Stock on the last possible date which the Company
could have issued such Common Stock and such Preferred Stock Certificate, as the
case may be, to such holder without violating SECTION 5(B)(II). If the Company
fails to pay the additional damages set forth in this SECTION 5(B)(V) within
five (5) business days of the date incurred, then such payment shall bear
interest at the rate of 2.0% per month (pro rated for partial months) until such
payments are made. The term "CLOSING BID PRICE" shall mean, for any security as
of any date, the last closing bid price of such security on the OTC Bulletin
Board or other principal exchange on which such security is traded as reported
by Bloomberg, or, if no closing bid price is reported for such security by
Bloomberg, the last closing trade price of such security as reported by
Bloomberg, or, if no last closing trade price is reported for such security by
Bloomberg, the average of the bid prices of any market makers for such security
as reported in the "pink sheets" by the National Quotation Bureau, Inc. If the
Closing Bid Price cannot be calculated for such security on such date on any of
the foregoing bases, the Closing Bid Price of such security on such date shall
be the fair market value as mutually determined by the Company and the holders
of a majority of the outstanding shares of Series A Preferred Stock.

                  (vi)  BUY-IN RIGHTS. In addition to any other rights available
to the holders of Series A Preferred Stock, if the Company fails to cause its
Transfer Agent to transmit to the holder a certificate or certificates
representing the shares of Common Stock issuable upon conversion of the Series A
Preferred Stock on or before the Delivery Date, and if after such date the
holder is required by its broker to purchase (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
holder of the shares of Common Stock issuable upon conversion of Series A
Preferred Stock which the holder anticipated receiving upon such conversion (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 shares of Common Stock issuable upon conversion
of Series A Preferred Stock that the Company was required to deliver to the
holder in connection with the conversion 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 shares of Series A Preferred
Stock and equivalent number of shares of Common Stock for which such conversion
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 conversion
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 conversion of shares of Common Stock with an aggregate sale price
giving rise to such purchase obligation of $10,000, under clause (1) of the

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immediately preceding sentence the Company shall be required to pay to 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, together with
applicable confirmations and other evidence reasonably requested by the Company.
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 conversion of the Series A Preferred Stock as required pursuant to
the terms hereof.

            (c)   MANDATORY CONVERSION.

                  (i)   Subject to SECTION 7 hereof, the number of outstanding
shares of Series A Preferred Stock referred to below in SECTION 5(C)(II) on the
Mandatory Conversion Date shall, automatically and without any action on the
part of the holder thereof, convert into a number of fully paid and
nonassessable shares of Common Stock equal to the quotient of (i) the
Liquidation Preference Amount of the number of shares of Series A Preferred
Stock being converted on the Mandatory Conversion Date DIVIDED BY (ii) the
Conversion Price in effect on the Mandatory Conversion Date.

                  (ii)  As used herein, "MANDATORY CONVERSION DATE" shall mean,
with respect to all outstanding shares of Series A Preferred Stock at such time,
that date that is five (5) years following the Issuance Date; PROVIDED that (i)
the registration statement providing for the resale of shares of the Common
Stock issuable upon conversion of the Series A Preferred Stock is effective and
has been effective, without lapse or suspension of any kind, for a period sixty
(60) consecutive calendar days, or the shares of Common Stock into which the
Series A Preferred Stock can be converted may be offered for sale to the public
pursuant to Rule 144(k) ("RULE 144(K)") under the Securities Act of 1933, as
amended (the "SECURITIES ACT"), (ii) trading in the Common Stock shall not have
been suspended by the Securities and Exchange Commission or the OTC Bulletin
Board (or other exchange or market on which the Common Stock is trading), and
(iii) the Company is in material compliance with the terms and conditions of
this Certificate of Designation and the other Transaction Documents (as defined
in the Purchase Agreement). Notwithstanding the foregoing, the Mandatory
Conversion Date shall be extended for as long as (a) a Triggering Event (as
defined in SECTION 8(D) hereof) shall have occurred and be continuing, or (b)
any event shall have occurred and be continuing which with the passage of time
and the failure to cure would result in a Triggering Event. The Mandatory
Conversion Date and the Voluntary Conversion Date collectively are referred to
in this Certificate of Designation as the "CONVERSION DATE."

                  (iii) On the Mandatory Conversion Date, the outstanding shares
of Series A Preferred Stock shall be converted automatically without any further
action by the holders of such shares and whether or not the certificates
representing such shares are surrendered to the Company or its Transfer Agent;
PROVIDED, HOWEVER, that the Company shall not be obligated to issue the shares
of Common Stock issuable upon conversion of any shares of Series A Preferred
Stock unless certificates evidencing such shares of Series A Preferred Stock are
either delivered to the Company or the holder notifies the Company that such
certificates have been lost, stolen, or destroyed, and executes an agreement
satisfactory to the Company to indemnify the Company from any loss incurred by
it in connection therewith. Upon the occurrence of a Mandatory Conversion of the
Series A Preferred Stock pursuant to this SECTION 5, the holders of the Series A
Preferred Stock shall surrender the certificates representing the Series A
Preferred Stock for which the Mandatory Conversion Date has occurred to the
Company and the Company shall cause its Transfer Agent to deliver the shares of
Common Stock issuable upon such conversion (in the same manner set forth in
SECTION 5(B)(II)) to the holder within three (3) business days of the holder's
delivery of the applicable Preferred Stock Certificates.

                                       8
<PAGE>

            (d)   CONVERSION PRICE.

                  (i)   The term "CONVERSION PRICE" shall mean $0.50, subject to
adjustment under SECTION 5(E) hereof. Notwithstanding any adjustment hereunder,
at no time shall the Conversion Price be greater than $0.50 per share except if
it is adjusted pursuant to SECTION 5(E)(I).

                  (ii)  Notwithstanding anything in the foregoing to the
contrary, if during any period (a "BLACK-OUT Period"), a holder of Series A
Preferred Stock is unable to trade any Common Stock issued or issuable upon
conversion of the Series A Preferred Stock immediately due to the postponement
of filing or delay or suspension of effectiveness of the Registration Statement
or because the Company has otherwise informed such holder of Series A Preferred
Stock that an existing prospectus cannot be used at that time in the sale or
transfer of such Common Stock (PROVIDED that such postponement, delay,
suspension or fact that the prospectus cannot be used is not due to factors
solely within the control of the holder of Series A Preferred Stock or due to
the Company exercising its rights under SECTION 3(N) of the Registration Rights
Agreement (as defined in the Purchase Agreement)), such holder of Series A
Preferred Stock shall have the option but not the obligation on any Conversion
Date within ten (10) trading days following the expiration of the Black-out
Period of using the Conversion Price applicable on such Conversion Date or any
Conversion Price selected by such holder of Series A Preferred Stock that would
have been applicable had such Conversion Date been at any earlier time during
the Black-out Period or within the ten (10) trading days thereafter.

            (e)   ADJUSTMENTS OF CONVERSION PRICE.

                  (i)   STOCK SPLITS AND COMBINATIONS. If the Company shall at
any time or from time to time after the Issuance Date, effect a stock split of
the outstanding Common Stock, the Conversion Price shall be proportionately
decreased. If the Company shall at any time or from time to time after the
Issuance Date, combine the outstanding shares of Common Stock, the Conversion
Price shall be proportionately increased. Any adjustments under this SECTION
5(E)(I) shall be effective at the close of business on the date the stock split
or combination becomes effective.

                  (ii)  CERTAIN DIVIDENDS AND DISTRIBUTIONS. If the Company
shall at any time or from time to time after the Issuance Date, make or issue or
set a record date for the determination of holders of Common Stock entitled to
receive a dividend or other Distribution payable in shares of Common Stock,
then, and in each event, the Conversion Price shall be decreased as of the time
of such issuance or, in the event such record date shall have been fixed, as of
the close of business on such record date, by multiplying the Conversion Price
then in effect by a fraction: (1) the numerator of which shall be the total
number of shares of Common Stock issued and outstanding immediately prior to the
time of such issuance or the close of business on such record date; and (2) the
denominator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable
in payment of such dividend or Distribution; PROVIDED, HOWEVER, that if such
record date shall have been fixed and such dividend is not fully paid or if such
Distribution is not fully made on the date fixed therefor, the Conversion Price
shall be adjusted pursuant to this paragraph as of the time of actual payment of

                                       9
<PAGE>

such dividends or Distributions; and PROVIDED FURTHER, HOWEVER, that no such
adjustment shall be made if the holders of Series A Preferred Stock
simultaneously receive (i) a dividend or other Distribution of shares of Common
Stock in a number equal to the number of shares of Common Stock as they would
have received if all outstanding shares of Series A Preferred Stock had been
converted into Common Stock on the date of such event or (ii) a dividend or
other Distribution of shares of Series A Preferred Stock which are convertible,
as of the date of such event, into such number of shares of Common Stock as is
equal to the number of additional shares of Common Stock being issued with
respect to each share of Common Stock in such dividend or Distribution.

                  (iii) OTHER DIVIDENDS AND DISTRIBUTIONS. If the Company shall
at any time or from time to time after the Issuance Date, make or issue or set a
record date for the determination of holders of Common Stock entitled to receive
a dividend or other Distribution payable in securities of the Company other than
shares of Common Stock, then, and in each event, an appropriate revision to the
applicable Conversion Price shall be made and provision shall be made (by
adjustments of the Conversion Price or otherwise) so that the holders of Series
A Preferred Stock shall receive upon conversions thereof, in addition to the
number of shares of Common Stock receivable thereon, the number of securities of
the Company which they would have received had their Series A Preferred Stock
been converted into Common Stock on the date of such event and had thereafter,
during the period from the date of such event to and including the Conversion
Date, retained such securities (together with any Distributions payable thereon
during such period), giving application to all adjustments called for during
such period under this SECTION 5(E)(III) with respect to the rights of the
holders of the Series A Preferred Stock; PROVIDED, HOWEVER, that if such record
date shall have been fixed and such dividend is not fully paid or if such
Distribution is not fully made on the date fixed therefor, the Conversion Price
shall be adjusted pursuant to this paragraph as of the time of actual payment of
such dividends or Distributions.

                  (iv)  RECLASSIFICATION, EXCHANGE OR SUBSTITUTION. If the
Common Stock issuable upon conversion of the Series A Preferred Stock at any
time or from time to time after the Issuance Date shall be changed to the same
or different number of shares of any class or classes of stock, whether by
reclassification, exchange, substitution or otherwise (other than by way of a
stock split or combination of shares or stock dividends provided for in SECTIONS
5(E)(I), (II) AND (III), or a reorganization, merger, consolidation, or sale of
assets provided for in SECTION 5(E)(V)), then, and in each event, an appropriate
revision to the Conversion Price shall be made and provisions shall be made (by
adjustments of the Conversion Price or otherwise) so that the holder of each
share of Series A Preferred Stock shall have the right thereafter to convert
such share of Series A Preferred Stock into the kind and amount of shares of
stock and other securities receivable upon such reclassification, exchange,
substitution or other change, by holders of the number of shares of Common Stock
into which such share of Series A Preferred Stock might have been converted
immediately prior to such reclassification, exchange, substitution or other
change, all subject to further adjustment as provided herein.

                  (v)   REORGANIZATION, MERGER, CONSOLIDATION OR SALES OF
ASSETS. If at any time or from time to time after the Issuance Date there shall
be a capital reorganization of the Company (other than by way of a stock split
or combination of shares or stock dividends or Distributions provided for in
SECTION 5(E)(I), (II) AND (III), or a reclassification, exchange or substitution
of shares provided for in SECTION 5(E)(IV)), or a merger or consolidation of the
Company with or into another corporation (or other entity) where the holders of
outstanding voting securities of the Company prior to such merger or
consolidation do not own over 50% of the outstanding voting securities of the

                                       10
<PAGE>

merged or consolidated entity, immediately after such merger or consolidation,
or the sale of all or substantially all of the Company's properties or assets to
any other person (an "ORGANIC CHANGE"), then as a part of such Organic Change an
appropriate revision to the Conversion Price shall be made if necessary and
provision shall be made if necessary (by adjustments of the Conversion Price or
otherwise) so that the holder of each share of Series A Preferred Stock shall
have the right thereafter to convert such share of Series A Preferred Stock into
the same kind and amount of shares of stock and other securities or property of
the Company or any successor corporation resulting from Organic Change. In any
such case, appropriate adjustment shall be made in the application of the
provisions of this SECTION 5(E)(V) with respect to the rights of the holders of
the Series A Preferred Stock after the Organic Change to the end that the
provisions of this SECTION 5(E)(V) (including any adjustment in the Conversion
Price then in effect and the number of shares of stock or other securities
deliverable upon conversion of the Series A Preferred Stock) shall be applied
after that event in as nearly an equivalent manner as may be practicable.

                  (vi)  ISSUANCE OF ADDITIONAL SHARES OF COMMON STOCK. For a
period of two (2) years following the Issuance Date ("FULL RATCHET PERIOD"), in
the event the Company shall issue or sell any additional shares of Common Stock
(otherwise than as provided in the foregoing subsections (i) through (v) of this
SECTION 5(E) or pursuant to (X) Common Stock Equivalents (as defined below)
granted or issued prior to the Issuance Date or (Y) pursuant to SUBSECTION
(VIII) below) (the "ADDITIONAL SHARES OF COMMON STOCK"), at a price per share
less than the Conversion Price then in effect, or without consideration, then
the Conversion Price upon each such issuance shall be reduced to a price equal
to the consideration per share paid (if any) for such Additional Shares of
Common Stock.

                  (vii) SUBSEQUENT ISSUES OF COMMON STOCK AND COMMON STOCK
EQUIVALENTS. In the event the Company shall, at any time following the Full
Ratchet Period, issue or sell any Additional Shares of Common Stock (otherwise
than as provided in the foregoing subsections (i) through (vi) of this SECTION
5(E), at a price per share less than the Conversion Price, or without
consideration, the Conversion Price then in effect upon each such issuance shall
be adjusted to that price (rounded to the nearest cent) determined by
multiplying the Conversion Price by a fraction: (1) the numerator of which shall
be equal to the sum of (A) the number of shares of Common Stock outstanding
immediately prior to the issuance of such Additional Shares of Common Stock PLUS
(B) the number of shares of Common Stock (rounded to the nearest whole share)
which the aggregate consideration for the total number of such Additional Shares
of Common Stock so issued would purchase at a price per share equal to the then
Conversion Price, and (2) the denominator of which shall be equal to the number
of shares of Common Stock outstanding immediately after the issuance of such
Additional Shares of Common Stock.

                  (viii) ISSUANCE OF COMMON STOCK EQUIVALENTS. If the Company,
at any time after the Issuance Date, shall issue any securities convertible into
or exchangeable for, directly or indirectly, Common Stock ("CONVERTIBLE
SECURITIES"), other than the Series A Preferred Stock, or any rights or warrants
or options to purchase any such Common Stock or Convertible Securities, shall be
issued or sold (collectively, the "COMMON STOCK EQUIVALENTS") and the aggregate
of the price per share for which Additional Shares of Common Stock may be
issuable thereafter pursuant to such Common Stock Equivalent, plus the
consideration received by the Company for issuance of such Common Stock
Equivalent DIVIDED BY the number of shares of Common Stock issuable pursuant to
such Common Stock Equivalent (the "AGGREGATE PER COMMON SHARE PRICE") shall be
less than the Conversion Price, or if, after any such issuance of Common Stock
Equivalents, the price per share for which Additional Shares of Common Stock may
be issuable thereafter is amended or adjusted, and such price as so amended or
adjusted shall cause the Aggregate Per Common Share Price to be less than
Conversion Price in effect at the time of such amendment or adjustment, then the
Conversion Price then in effect shall be adjusted pursuant to SECTION (5)(E)(VI)
OR (VII) (depending on whether such event shall occur during or following the

                                       11
<PAGE>

Full Ratchet Period, as the case may be) above assuming that all Additional
Shares of Common Stock have been issued pursuant to the Convertible Securities
or Common Stock Equivalents for a purchase price equal to the Aggregate Per
Common Share Price. No adjustment of the Conversion Price shall be made under
this SUBSECTION (VIII) upon the issuance of any Convertible Security which is
issued pursuant to the exercise of any warrants or other subscription or
purchase rights therefore, if any adjustment shall previously have been made
upon the issuance of such warrants or other rights pursuant to this SUBSECTION
(VIII). No adjustment shall be made to the Conversion Price upon the issuance of
Common Stock pursuant to the exercise, conversion or exchange of any Convertible
Security or Common Stock Equivalent where an adjustment to the Conversion Price
was already made as a result of the issuance or purchase of any Convertible
Security or Common Stock Equivalent.

                  (ix)  CONSIDERATION FOR STOCK. In case any shares of Common
Stock or Convertible Securities other than the Series A Preferred Stock, or any
rights or warrants or options to purchase any such Common Stock or Convertible
Securities, shall be issued or sold: (1) in connection with any merger or
consolidation in which the Company is the surviving corporation (other than any
consolidation or merger in which the previously outstanding shares of Common
Stock of the Company shall be changed to or exchanged for the stock or other
securities of another corporation or entity), the amount of consideration
therefore shall be deemed to be the fair value, as determined reasonably and in
good faith by the Board of Directors of the Company, of such portion of the
assets and business of the nonsurviving corporation as such Board may determine
to be attributable to such shares of Common Stock, Convertible Securities,
rights or warrants or options, as the case may be; or (2) in the event of any
consolidation or merger of the Company in which the Company is not the surviving
corporation or in which the previously outstanding shares of Common Stock of the
Company shall be changed into or exchanged for the stock or other securities of
another corporation or entity, or in the event of any sale of all or
substantially all of the assets of the Company for stock or other securities of
any corporation, the Company shall be deemed to have issued a number of shares
of its Common Stock for stock or securities or other property of the other
corporation or entity computed on the basis of the actual exchange ratio on
which the transaction was predicated, and for a consideration equal to the fair
market value on the date of such transaction of all such stock or securities or
other property of the other corporation. If any such calculation results in
adjustment of the applicable Conversion Price, or the number of shares of Common
Stock issuable upon conversion of the Series A Preferred Stock, the
determination of the applicable Conversion Price or the number of shares of
Common Stock issuable upon conversion of the Series A Preferred Stock
immediately prior to such merger, consolidation or sale, shall be made after
giving effect to such adjustment of the number of shares of Common Stock
issuable upon conversion of the Series A Preferred Stock. In the event any
consideration received by the Company for any securities consists of property
other than cash, the fair market value thereof at the time of issuance or as
otherwise applicable shall be as determined in good faith by the Board of
Directors of the Company. In the event Common Stock is issued with other shares
or securities or other assets of the Company for consideration which covers
both, the consideration computed as provided in this SECTION (5)(E)(IX) shall be
allocated among such securities and assets as determined in good faith by the
Board of Directors of the Company.

                  (x)   RECORD DATE. In case the Company shall take record of
the holders of its Common Stock or any other Preferred Stock for the purpose of
entitling them to subscribe for or purchase Common Stock or Convertible
Securities, then the date of the issue or sale of the shares of Common Stock
shall be deemed to be such record date.

                  (xi)  CERTAIN ISSUES EXCEPTED. Anything herein to the contrary
notwithstanding, the Company shall not be required to make any adjustment to the
Conversion Price upon (i) securities issued (other than for cash) in connection
with a merger, acquisition, or consolidation that do not exceed 5% of the
outstanding Common Stock of the Company as of the Date of the Purchase Agreement

                                       12
<PAGE>

(such percentage subject to adjustment in a manner consistent with the
adjustments to the Conversion Price contemplated in this SECTION 5), (ii)
securities issued pursuant to the conversion or exercise of convertible or
exercisable securities issued or outstanding on or prior to the date of the
Purchase Agreement or issued pursuant to the Purchase Agreement (so long as the
conversion or exercise price in such securities are not amended to lower such
price and/or adversely affect the holders), (iii) Common Stock issued or the
issuance or grants of options to purchase Common Stock pursuant to the Company's
stock option plans and employee stock purchase plans that either (x) exist on
the date of the Purchase Agreement or (y) do not exceed 10% of the outstanding
Common Stock of the Company as of the date of the Purchase Agreement (such
percentage subject to adjustment in a manner consistent with the adjustments to
the Conversion Price contemplated in this SECTION 5), (iv) Common Stock issued
as payment of dividends on the Series A Preferred Stock issued pursuant to the
Purchase Agreement and (v) any warrants issued to the placement agent and its
designees for the transactions contemplated by the Purchase Agreement. For the
avoidance of doubt, notwithstanding clause (i) of this SECTION 5(E)(XI), in the
event that the Company shall effect a merger or similar transaction permitted
under SECTION 3.22(B)(I) of the Purchase Agreement, the amount of Common Stock
issued in connection with such transaction that exceeds 5% of the outstanding
Common Stock of the Company as of the Date of the Purchase Agreement shall
nonetheless be subject to all of the provisions of SECTION 5(B)(V) hereof.

            (f)   NO IMPAIRMENT. The Company shall not, by amendment of 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 to be observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all the provisions of this
SECTION 5 and in the taking of all such action as may be necessary or
appropriate in order to protect the Conversion Rights of the holders of the
Series A Preferred Stock against impairment. In the event a holder shall elect
to convert any shares of Series A Preferred Stock as provided herein, the
Company cannot refuse conversion based on any claim that such holder or any one
associated or affiliated with such holder has been engaged in any violation of
law, unless (i) an order from the Securities and Exchange Commission prohibits
such conversion or (ii) an injunction from a court, on notice, restraining
and/or adjoining conversion of all or of said shares of Series A Preferred Stock
shall have been issued and the Company posts a surety bond for the benefit of
such holder in an amount equal to 120% of the Liquidation Preference Amount of
the Series A Preferred Stock such holder has elected to convert, which bond
shall remain in effect until the completion of arbitration/litigation of the
dispute and the proceeds of which shall be payable to such holder in the event
it obtains judgment.

            (g)   CERTIFICATES AS TO ADJUSTMENTS. Upon occurrence of each
adjustment or readjustment of the Conversion Price or number of shares of Common
Stock issuable upon conversion of the Series A Preferred Stock pursuant to this
SECTION 5, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and furnish to each holder of
such Series A Preferred Stock a certificate setting forth such adjustment and
readjustment, showing in detail the facts upon which such adjustment or
readjustment is based. The Company shall, upon written request of the holder of
such affected Series A Preferred Stock, at any time, furnish or cause to be
furnished to such holder a like certificate setting forth such adjustments and
readjustments, the Conversion Price in effect at the time, and the number of
shares of Common Stock and the amount, if any, of other securities or property
which at the time would be received upon the conversion of a share of such
Series A Preferred Stock. Notwithstanding the foregoing, the Company shall not
be obligated to deliver a certificate unless such certificate would reflect an
increase or decrease of at least one percent of such adjusted amount.

                                       13
<PAGE>

            (h)   ISSUE TAXES. The Company shall pay any and all issue and other
taxes, excluding federal, state or local income taxes, that may be payable in
respect of any issue or delivery of shares of Common Stock on conversion of
shares of Series A Preferred Stock pursuant hereto; PROVIDED, HOWEVER, that the
Company shall not be obligated to pay any transfer taxes resulting from any
transfer requested by any holder in connection with any such conversion.

            (i)   NOTICES. All notices and other communications hereunder shall
be in writing and shall be deemed given if delivered personally or by facsimile
or three (3) business days following being mailed by certified or registered
mail, postage prepaid, return-receipt requested, addressed to the holder of
record at its address appearing on the books of the Company. The Company will
give written notice to each holder of Series A Preferred Stock at least twenty
(20) days prior to the date on which the Company closes its books or takes a
record (I) with respect to any dividend or Distribution upon the Common Stock,
(II) with respect to any PRO RATA subscription offer to holders of Common Stock
or (III) for determining rights to vote with respect to any Organic Change,
dissolution, liquidation or winding-up, and in no event shall such notice be
provided to such holder prior to such information being made known to the
public. The Company will also give written notice to each holder of Series A
Preferred Stock at least twenty (20) days prior to the date on which any Organic
Change, dissolution, liquidation or winding-up will take place, and in no event
shall such notice be provided to such holder prior to such information being
made known to the public.

            (j)   FRACTIONAL SHARES. No fractional shares of Common Stock shall
be issued upon conversion of the Series A Preferred Stock. In lieu of any
fractional shares to which the holder would otherwise be entitled, the Company
shall round the number of shares to be issued upon conversion up to the nearest
whole number of shares.

            (k)   RESERVATION OF COMMON STOCK. The Company shall, so long as any
shares of Series A Preferred Stock are outstanding, reserve and keep available
out of its authorized and unissued Common Stock, solely for the purpose of
effecting the conversion of the Series A Preferred Stock, such number of shares
of Common Stock equal to at least one hundred fifty percent (150%) of the
aggregate number of shares of Common Stock as shall from time to time be
sufficient to effect the conversion of all of the Series A Preferred Stock then
outstanding. The initial number of shares of Common Stock reserved for
conversions of the Series A Preferred Stock and any increase in the number of
shares so reserved shall be allocated PRO RATA among the holders of the Series A
Preferred Stock based on the number of shares of Series A Preferred Stock held
by each holder of record at the time of issuance of the Series A Preferred Stock
or increase in the number of reserved shares, as the case may be. In the event a
holder shall sell or otherwise transfer any of such holder's shares of Series A
Preferred Stock, each transferee shall be allocated a PRO RATA portion of the
number of reserved shares of Common Stock reserved for such transferor. Any
shares of Common Stock reserved and which remain allocated to any person or
entity which does not hold any shares of Series A Preferred Stock shall be
allocated to the remaining holders of Series A Preferred Stock, PRO RATA based
on the number of shares of Series A Preferred Stock then held by such holders.

            (l)   REGULATORY COMPLIANCE. If any shares of Common Stock to be
reserved for the purpose of conversion of Series A Preferred Stock require
registration or listing with or approval of any governmental authority, stock
exchange or other regulatory body under any federal or state law or regulation
or otherwise before such shares may be validly issued or delivered upon
conversion, the Company shall, at its sole cost and expense, in good faith and
as expeditiously as possible, endeavor to secure such registration, listing or
approval, as the case may be.

                                       14
<PAGE>

      6.    NO PREEMPTIVE RIGHTS. Except as provided in SECTION 5 hereof and in
the Purchase Agreement, no holder of the Series A Preferred Stock shall be
entitled to rights to subscribe for, purchase or receive any part of any new or
additional shares of any class, whether now or hereinafter authorized, or of
bonds or debentures, or other evidences of indebtedness convertible into or
exchangeable for shares of any class, but all such new or additional shares of
any class, or any bond, debentures or other evidences of indebtedness
convertible into or exchangeable for shares, may be issued and disposed of by
the Board of Directors on such terms and for such consideration (to the extent
permitted by law), and to such person or persons as the Board of Directors in
their absolute discretion may deem advisable.

      7.    CONVERSION RESTRICTION. Notwithstanding anything to the contrary set
forth in SECTION 5 of this Certificate of Designation, at no time may a holder
of shares of Series A Preferred Stock convert shares of the Series A Preferred
Stock if the number of shares of Common Stock to be issued pursuant to such
conversion would cause the number of shares of Common Stock owned by such holder
at such time to exceed, when aggregated with all other shares of Common Stock
owned by such holder at such time, the number of shares of Common Stock which
would result in such holder beneficially owning (as determined in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the
rules thereunder) in excess of 9.9% of the then issued and outstanding shares of
Common Stock outstanding at such time; PROVIDED, HOWEVER, that upon a holder of
Series A Preferred Stock providing the Company with sixty-one (61) days notice
(pursuant to SECTION 5(I) hereof) (the "WAIVER NOTICE") that such holder would
like to waive this SECTION 7 of this Certificate of Designation with regard to
any or all shares of Common Stock issuable upon conversion of Series A Preferred
Stock, this SECTION 7 shall be of no force or effect with regard to those shares
of Series A Preferred Stock referenced in the Waiver Notice.

      8.    REDEMPTION

            (a)   REDEMPTION OPTION UPON MAJOR TRANSACTION. In addition to all
other rights of the holders of Series A Preferred Stock contained herein,
simultaneous with the occurrence of a Major Transaction (as defined below), each
holder of Series A Preferred Stock shall have the right, at such holder's
option, to require the Company to redeem all or a portion of such holder's
shares of Series A Preferred Stock at a price per share of Series A Preferred
Stock equal to one hundred percent (100%) of the Liquidation Preference Amount,
plus any accrued but unpaid dividends and liquidated damages (the "MAJOR
TRANSACTION REDEMPTION PRICE"). In such event, the holder shall have the sole
option to require the Company to pay the Major Transaction Redemption Price
either in cash or shares of Common Stock. If the holder elects to receive the
Major Transaction Redemption Price in shares of Common Stock, the price per
share shall be based upon the Conversion Price then in effect on the day
preceding the date of delivery of the Notice of Redemption at Option of Buyer
Upon Major Transaction (as hereafter defined) and the holder of such shares of
Common Stock shall have demand registration rights with respect to such shares.

            (b)   REDEMPTION OPTION UPON TRIGGERING EVENT. In addition to all
other rights of the holders of Series A Preferred Stock contained herein, after
a Triggering Event (as defined below), each holder of Series A Preferred Stock
shall have the right, at such holder's option, to require the Company to redeem
all or a portion of such holder's shares of Series A Preferred Stock at a price
per share of Series A Preferred Stock equal to one hundred fifteen percent
(115%) of the Liquidation Preference Amount, plus any accrued but unpaid
dividends and liquidated damages (the "TRIGGERING EVENT REDEMPTION PRICE"; and,

                                       15
<PAGE>

collectively with the Major Transaction Redemption Price, the "REDEMPTION
PRICE"). In such event, the holder shall have the sole option to require the
Company to pay the Triggering Event Redemption Price either in cash or shares of
Common Stock. If the holder elects to receive the Triggering Event Redemption
Price in shares of Common Stock in accordance with this SECTION 8(B), the price
per share shall be based upon the Conversion Price then in effect on the day
preceding the date of delivery of the Notice of Redemption at Option of Buyer
Upon Triggering Event (as hereafter defined) and the holder of such shares of
Common Stock shall have demand registration rights with respect to such shares.

            (c)   MAJOR TRANSACTION. A "MAJOR TRANSACTION" shall be deemed to
have occurred at such time as any of the following events:

                  (i)   the consolidation, merger or other business combination
of the Company with or into another person (other than (A) pursuant to a
migratory merger effected solely for the purpose of changing the jurisdiction of
incorporation of the Company or (B) a consolidation, merger or other business
combination in which holders of the Company's voting power immediately prior to
the transaction continue after the transaction to hold, directly or indirectly,
the voting power of the surviving entity or entities necessary to elect a
majority of the members of the board of directors (or their equivalent if other
than a corporation) of such entity or entities).

                  (ii)  the sale or transfer of more than 50% of the Company's
assets other than inventory in the ordinary course of business in one or a
related series of transactions; or

                  (iii) closing of a purchase, tender or exchange offer made to
the holders of more than fifty percent (50%) of the outstanding shares of Common
Stock in which more than fifty percent (50%) of the outstanding shares of Common
Stock were tendered and accepted.

            (d)   TRIGGERING EVENT. A "TRIGGERING EVENT" shall be deemed to have
occurred at such time as any of the following events:

                  (i)   so long as any shares of Series A Preferred Stock are
outstanding, the effectiveness of the Registration Statement, after it becomes
effective, (i) lapses for any reason (including, without limitation, the
issuance of a stop order) and such lapse continues for a period of twenty (20)
consecutive trading days, or (ii) is unavailable to the holder of the Series A
Preferred Stock for sale of the shares of Common Stock, and such lapse or
unavailability continues for a period of twenty (20) consecutive trading days,
and the shares of Common Stock into which such holder's Series A Preferred Stock
can be converted cannot be sold in the public securities market pursuant to Rule
144(k); PROVIDED that the cause of such lapse or unavailability is not due to
factors solely within the control of such holder of Series A Preferred Stock;

                  (ii)  the suspension from listing, without subsequent listing
on any one of, or the failure of the Common Stock to be listed on at least one
of, the OTC Bulletin Board, the Nasdaq Global Market, the Nasdaq Capital Market,
the New York Stock Exchange, Inc. or the American Stock Exchange, Inc., for a
period of five (5) consecutive trading days;

                  (iii) the Company's notice to any holder of Series A Preferred
Stock, including by way of public announcement, at any time, of its inability to
comply (including for any of the reasons described in SECTION 9) or its
intention not to comply with proper requests for conversion of any Series A
Preferred Stock into shares of Common Stock;

                                       16
<PAGE>

                  (iv)  the Company's failure to comply with a Conversion Notice
tendered in accordance with the provisions of this Certificate of Designation
within ten (10) business days after the receipt by the Company of the Conversion
Notice and the Preferred Stock Certificates;

                  (v)   the Company deregisters its shares of Common Stock and
as a result such shares of Common Stock are no longer publicly traded;

                  (vi)  the Company consummates a "going private" transaction
and as a result the Common Stock is no longer registered under Sections 12(b) or
12(g) of the Securities Exchange Act of 1934, as amended; or

                  (vii) the Company breaches any representation, warranty,
covenant or other term or condition of the Purchase Agreement, this Certificate
of Designation or any other agreement, document, certificate or other instrument
delivered in connection with the transactions contemplated thereby or hereby,
except to the extent that such breach would not have a Material Adverse Effect
(as defined in the Purchase Agreement) and except, in the case of a breach of a
covenant which is curable, only if such breach continues for a period of a least
ten (10) business days.

            (e)   MECHANICS OF REDEMPTION AT OPTION OF BUYER UPON MAJOR
TRANSACTION. No sooner than fifteen (15) days nor later than ten (10) days prior
to the consummation of a Major Transaction, but not prior to the public
announcement of such Major Transaction, the Company shall deliver written notice
thereof via facsimile and overnight courier ("NOTICE OF MAJOR TRANSACTION") to
each holder of Series A Preferred Stock. At any time after receipt of a Notice
of Major Transaction, any holder of Series A Preferred Stock then outstanding
may require the Company to redeem, effective immediately prior to the
consummation of such Major Transaction, all of the holder's Series A Preferred
Stock then outstanding by delivering written notice thereof via facsimile, and
overnight courier ("NOTICE OF REDEMPTION AT OPTION OF BUYER UPON MAJOR
TRANSACTION") to the Company, which Notice of Redemption at Option of Buyer Upon
Major Transaction shall indicate (i) the number of shares of Series A Preferred
Stock that such holder is electing to redeem and (ii) the applicable Major
Transaction Redemption Price, as calculated pursuant to SECTION 8(A) above.

            (f)   MECHANICS OF REDEMPTION AT OPTION OF BUYER UPON TRIGGERING
EVENT. Within one (1) business day after the Company obtains knowledge of the
occurrence of a Triggering Event, the Company shall deliver written notice
thereof via facsimile and overnight courier ("NOTICE OF TRIGGERING EVENT") to
each holder of Series A Preferred Stock. At any time after the earlier of a
holder's receipt of a Notice of Triggering Event and such holder becoming aware
of a Triggering Event, any holder of Series A Preferred Stock then outstanding
may require the Company to redeem all of the Series A Preferred Stock by
delivering written notice thereof via facsimile and overnight courier ("NOTICE
OF REDEMPTION AT OPTION OF BUYER UPON TRIGGERING EVENT") to the Company, which
Notice of Redemption at Option of Buyer Upon Triggering Event shall indicate (i)
the number of shares of Series A Preferred Stock that such holder is electing to
redeem and (ii) the applicable Triggering Event Redemption Price, as calculated
pursuant to SECTION 8(B) above.

            (g)   PAYMENT OF REDEMPTION PRICE. Upon the Company's receipt of a
Notice(s) of Redemption at Option of Buyer Upon Triggering Event or a Notice(s)
of Redemption at Option of Buyer Upon Major Transaction from any holder of
Series A Preferred Stock, the Company shall immediately notify each holder of
Series A Preferred Stock by facsimile of the Company's receipt of such Notice(s)
of Redemption at Option of Buyer Upon Triggering Event or Notice(s) of

                                       17
<PAGE>

Redemption at Option of Buyer Upon Major Transaction and each holder which has
sent such a notice shall promptly submit to the Company such holder's Preferred
Stock Certificates which such holder has elected to have redeemed. In connection
therewith, the holder shall have the sole option to require the Company to pay
the Redemption Price either in cash or shares of Common Stock in accordance with
SECTIONS 8(A) AND (B) and SECTION 9 of this Certificate of Designation. The
Company shall deliver the applicable Major Transaction Redemption Price
immediately prior to the consummation of the Major Transaction; PROVIDED that a
holder's Preferred Stock Certificates shall have been so delivered to the
Company; PROVIDED FURTHER that if the Company is unable to redeem all of the
Series A Preferred Stock to be redeemed, the Company shall redeem an amount from
each holder of Series A Preferred Stock being redeemed equal to such holder's
pro-rata amount of all Series A Preferred Stock being redeemed. If the Company
shall fail to redeem all of the Series A Preferred Stock submitted for
redemption (other than pursuant to a dispute as to the arithmetic calculation of
the Redemption Price), in addition to any remedy such holder of Series A
Preferred Stock may have under this Certificate of Designation and the Purchase
Agreement, the applicable Redemption Price payable in respect of such unredeemed
Series A Preferred Stock shall bear interest at the rate of 1.0% per month
(prorated for partial months) until paid in full. Until the Company pays such
unpaid applicable Redemption Price in full to a holder of shares of Series A
Preferred Stock submitted for redemption, such holder shall have the option (the
"VOID OPTIONAL REDEMPTION OPTION") to, in lieu of redemption, require the
Company to promptly return to such holder(s) all of the shares of Series A
Preferred Stock that were submitted for redemption by such holder(s) under this
SECTION 8 and for which the applicable Redemption Price has not been paid, by
sending written notice thereof to the Company via facsimile (the "VOID OPTIONAL
REDEMPTION NOTICE"). Upon the Company's receipt of such Void Optional Redemption
Notice(s) and prior to payment of the full applicable Redemption Price to such
holder, (i) the Notice(s) of Redemption at Option of Buyer Upon Major
Transaction or Notice of Redemption at Option of Buyer Upon Triggering Event
shall be null and void with respect to those shares of Series A Preferred Stock
submitted for redemption and for which the applicable Redemption Price has not
been paid and (ii) the Company shall immediately return any Series A Preferred
Stock submitted to the Company by each holder for redemption under this SECTION
8(D) and for which the applicable Redemption Price has not been paid and (iii)
the Conversion Price of such returned shares of Series A Preferred Stock shall
be adjusted to the lesser of (A) the Conversion Price and (B) the lowest Closing
Bid Price during the period beginning on the date on which the Notice(s) of
Redemption at Option of Buyer Upon Major Transaction or Notice of Redemption at
Option of Buyer Upon Triggering Event is delivered to the Company and ending on
the date on which the Void Optional Redemption Notice(s) is delivered to the
Company; PROVIDED that no adjustment shall be made if such adjustment would
result in an increase of the Conversion Price then in effect. A holder's
delivery of a Void Optional Redemption Notice and exercise of its rights
following such notice shall not effect the Company's obligations to make any
payments which have accrued prior to the date of such notice other than interest
payments. Payments provided for in this SECTION 8 shall have priority to
payments to other stockholders in connection with a Major Transaction or
Triggering Event.

            (h)   DEMAND REGISTRATION RIGHTS. If the Redemption Price upon the
occurrence of a Major Transaction or a Triggering Event is paid in shares of
Common Stock and such shares have not been previously registered on a
registration statement under the Securities Act, a holder of Series A Preferred
Stock may make a written request for registration under the Securities Act
pursuant to this SECTION 8(H) of all of its shares of Common Stock issued upon
such Major Transaction or Triggering Event. The Company shall use its reasonable
best efforts to cause to be filed and declared effective as soon as reasonably
practicable (but in no event later than the ninetieth (90th) day after such
holder's request is made) a registration statement under the Securities Act,
providing for the sale of all of the shares of Common Stock issued upon such
Major Transaction or Triggering Event by such holder. The Company agrees to use
its reasonable best efforts to keep any such registration statement continuously
effective for resale of the Common Stock for so long as such holder shall
request, but in no event later than the date that the shares of Common Stock
issued upon such Major Transaction or Triggering Event may be offered for resale
to the public pursuant to Rule 144(k).

                                       18
<PAGE>

      9.    INABILITY TO FULLY CONVERT

            (a)   HOLDER'S OPTION IF COMPANY CANNOT FULLY CONVERT. If, upon the
Company's receipt of a Conversion Notice or on the Mandatory Conversion Date,
the Company cannot issue shares of Common Stock registered for resale under the
Registration Statement for any reason, including, without limitation, because
the Company (w) does not have a sufficient number of shares of Common Stock
authorized and available, (x) is otherwise prohibited by applicable law or by
the rules or regulations of any stock exchange, interdealer quotation system or
other self-regulatory organization with jurisdiction over the Company or its
securities from issuing all of the Common Stock which is to be issued to a
holder of Series A Preferred Stock pursuant to a Conversion Notice or (y)
subsequent to the effective date of the Registration Statement, fails to have a
sufficient number of shares of Common Stock registered for resale under the
Registration Statement, then the Company shall issue as many shares of Common
Stock as it is able to issue in accordance with such holder's Conversion Notice
and pursuant to SECTION 5(B)(II) above and, with respect to the unconverted
Series A Preferred Stock, the holder, solely at such holder's option, can elect,
within five (5) business days after receipt of notice from the Company thereof
to:

                  (i)   require the Company to redeem from such holder those
Series A Preferred Stock for which the Company is unable to issue Common Stock
in accordance with such holder's Conversion Notice ("MANDATORY REDEMPTION") at a
price per share equal to the Major Transaction Redemption Price as of such
Conversion Date (the "MANDATORY REDEMPTION PRICE"). In such event, the holder
shall have the sole option to require the Company to pay the Mandatory
Redemption Price either in cash or shares of Common Stock;

                  (ii)  if the Company's inability to fully convert Series A
Preferred Stock is pursuant to SECTION 9(A)(Y) above, require the Company to
issue restricted shares of Common Stock in accordance with such holder's
Conversion Notice and pursuant to SECTION 5(B)(II) above;

                  (iii) void its Conversion Notice and retain or have returned,
as the case may be, the shares of Series A Preferred Stock that were to be
converted pursuant to such holder's Conversion Notice (PROVIDED that a holder's
voiding its Conversion Notice shall not effect the Company's obligations to make
any payments which have accrued prior to the date of such notice); or

                  (iv)  exercise its Buy-In rights pursuant to and in accordance
with the terms and provisions of SECTION 5(B)(VI) hereof.

            (b)   MECHANICS OF FULFILLING HOLDER'S ELECTION. The Company shall
immediately send via facsimile to a holder of Series A Preferred Stock, upon
receipt of a facsimile copy of a Conversion Notice from such holder which cannot
be fully satisfied as described in SECTION 9(A) above, a notice of the Company's
inability to fully satisfy such holder's Conversion Notice (the "INABILITY TO
FULLY CONVERT NOTICE"). Such Inability to Fully Convert Notice shall indicate
(i) the reason why the Company is unable to fully satisfy such holder's
Conversion Notice, (ii) the number of Series A Preferred Stock which cannot be
converted and (iii) the applicable Mandatory Redemption Price. Such holder shall
notify the Company of its election pursuant to SECTION 9(A) above by delivering
written notice via facsimile to the Company ("NOTICE IN RESPONSE TO INABILITY TO
CONVERT").

                                       19
<PAGE>

            (c)   PAYMENT OF REDEMPTION PRICE. If such holder shall elect to
have its shares redeemed pursuant to SECTION 9(A)(I) above, the Company shall
pay the Mandatory Redemption Price to such holder within thirty (30) days of the
Company's receipt of the holder's Notice in Response to Inability to Convert;
PROVIDED that prior to the Company's receipt of the holder's Notice in Response
to Inability to Convert the Company has not delivered a notice to such holder
stating, to the satisfaction of the holder, that the event or condition
resulting in the Mandatory Redemption has been cured and all Conversion Shares
issuable to such holder can and will be delivered to the holder in accordance
with the terms of SECTION 5(B)(II). If the Company shall fail to pay the
applicable Mandatory Redemption Price to such holder on a timely basis as
described in this SECTION 9(C) (other than pursuant to a dispute as to the
determination of the arithmetic calculation of the Redemption Price), in
addition to any remedy such holder of Series A Preferred Stock may have under
this Certificate of Designation and the Purchase Agreement, such unpaid amount
shall bear interest at the rate of 2.0% per month (prorated for partial months)
until paid in full. Until the full Mandatory Redemption Price is paid in full to
such holder, such holder may (i) void the Mandatory Redemption with respect to
those Series A Preferred Stock for which the full Mandatory Redemption Price has
not been paid, (ii) receive back such Series A Preferred Stock, and (iii)
require that the Conversion Price of such returned Series A Preferred Stock be
adjusted to the lesser of (A) the Conversion Price and (B) the lowest Closing
Bid Price during the period beginning on the Conversion Date and ending on the
date the holder voided the Mandatory Redemption.

            (d)   PRO-RATA CONVERSION AND REDEMPTION. In the event the Company
receives a Conversion Notice from more than one holder of Series A Preferred
Stock on the same day and the Company can convert and redeem some, but not all,
of the Series A Preferred Stock pursuant to this SECTION 9, the Company shall
convert and redeem from each holder of Series A Preferred Stock electing to have
Series A Preferred Stock converted and redeemed at such time an amount equal to
such holder's pro-rata amount of all shares of Series A Preferred Stock being
converted and redeemed at such time.

      10.   VOTE TO CHANGE THE TERMS OF OR ISSUE PREFERRED STOCK. The
affirmative vote at a meeting duly called for such purpose or the written
consent without a meeting, of the holders of not less than seventy-five percent
(75%) of the then outstanding shares of Series A Preferred Stock (in addition to
any other corporate approvals then required to effect such action), shall be
required (a) for any change to this Certificate of Designation or the Company's
Certificate of Incorporation which would amend, alter, change or repeal any of
the powers, designations, preferences and rights of the Series A Preferred Stock
or (b) for the issuance of shares of Series A Preferred Stock other than
pursuant to the Purchase Agreement.

      11.   LOST OR STOLEN CERTIFICATES. Upon receipt by the Company of evidence
satisfactory to the Company of the loss, theft, destruction or mutilation of any
Preferred Stock Certificates representing the shares of Series A Preferred
Stock, and, in the case of loss, theft or destruction, of any indemnification
undertaking by the holder to the Company and, in the case of mutilation, upon
surrender and cancellation of the Preferred Stock Certificate(s), the Company
shall execute and deliver new preferred stock certificate(s) of like tenor and
date; PROVIDED, HOWEVER, the Company shall not be obligated to re-issue
Preferred Stock Certificates if the holder contemporaneously requests the
Company to convert such shares of Series A Preferred Stock into Common Stock.

                                       20
<PAGE>

      12.   REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND
INJUNCTIVE RELIEF. The remedies provided in this Certificate of Designation
shall be cumulative and in addition to all other remedies available under this
Certificate of Designation, at law or in equity (including a decree of specific
performance and/or other injunctive relief); no remedy contained herein shall be
deemed a waiver of compliance with the provisions giving rise to such remedy and
nothing herein shall limit a holder's right to pursue actual damages for any
failure by the Company to comply with the terms of this Certificate of
Designation. Amounts set forth or provided for herein with respect to payments,
conversion and the like (and the computation thereof) shall be the amounts to be
received by the holder thereof and shall not, except as expressly provided
herein, be subject to any other obligation of the Company (or the performance
thereof). The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the holders of the Series A Preferred
Stock and that the remedy at law for any such breach may be inadequate. The
Company therefore agrees that, in the event of any such breach or threatened
breach, the holders of the Series A Preferred Stock shall be entitled, in
addition to all other available remedies, to an injunction restraining any
breach, without the necessity of showing economic loss and without any bond or
other security being required.

      13.   SPECIFIC SHALL NOT LIMIT GENERAL; CONSTRUCTION. No specific
provision contained in this Certificate of Designation shall limit or modify any
more general provision contained herein. This Certificate of Designation shall
be deemed to be jointly drafted by the Company and all initial purchasers of the
Series A Preferred Stock and shall not be construed against any person as the
drafter hereof.

      14.   FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of
a holder of Series A Preferred Stock in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       21
<PAGE>

      IN WITNESS WHEREOF, the undersigned has executed and subscribed this
Certificate and does affirm the foregoing as true this 20th day of April, 2007.

                                        MARKETING WORLDWIDE CORPORATION

                                        By: /s/ Michael Winzkowski
                                            ----------------------
                                        Name: Michael Winzkowski
                                        Title: Chief Executive Officer

                                       22
<PAGE>

                                    EXHIBIT I
                                    ---------

                                CONVERSION NOTICE
                         MARKETING WORLDWIDE CORPORATION

      Reference is made to the Certificate of Designation of the Relative Rights
and Preferences of the Series A Convertible Preferred Stock of Marketing
Worldwide Corporation (the "CERTIFICATE OF DESIGNATION"). In accordance with and
pursuant to the Certificate of Designation, the undersigned hereby elects to
convert the number of shares of Series A Convertible Preferred Stock, par value
$0.001 per share (the "PREFERRED SHARES"), of Marketing Worldwide Corporation a
Delaware corporation (the "COMPANY"), indicated below into shares of Common
Stock, par value $0.001 per share (the "COMMON STOCK"), of the Company, by
tendering the stock certificate(s) representing the share(s) of Preferred Shares
specified below as of the date specified below.

      Date of Conversion:_______________________________________________________

      Number of Preferred Shares to be converted:_______________________________

      Stock certificate no(s). of Preferred Shares to be converted:_____________

      The Common Stock have been sold pursuant to the Registration Statement (as
      defined in the Registration Rights Agreement): YES [ ]  NO [ ]

Please confirm the following information:

      Conversion Price:_________________________________________________________

      Number of shares of Common Stock to be issued:____________________________

      Number of shares of Common Stock beneficially owned or deemed beneficially
      owned by the Holder on the Date of Conversion:____________________________

Please issue the Common Stock into which the Preferred Shares are being
converted and, if applicable, any check drawn on an account of the Company in
the following name and to the following address:

      Issue to:_________________________________________________________________
               _________________________________________________________________
               Facsimile No.:___________________________________________________

      Authorization:____________________________________________________________

               By:______________________________________________________________
               Title:___________________________________________________________
               Dated:___________________________________________________________

                                       23<PAGE>

                                                                     Exhibit 4.5

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH
SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED.

                          SERIES A WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                         MARKETING WORLDWIDE CORPORATION

                             Expires April 23, 2012

No.: W-A-07-01                                       Number of Shares: 3,500,000
Date of Issuance: April 23, 2007

      FOR VALUE RECEIVED, the undersigned, Marketing Worldwide Corporation, a
Delaware corporation (together with its successors and assigns, the "ISSUER"),
hereby certifies that Vision Opportunity Master Fund, Ltd. or its registered
assigns is entitled to subscribe for and purchase, during the Term (as
hereinafter defined), up to 3,500,000 shares (subject to adjustment as
hereinafter provided) of the duly authorized, validly issued, fully paid and
non-assessable Common Stock of the Issuer, at an exercise price per share equal
to the Warrant Price then in effect, subject, however, to the provisions and
upon the terms and conditions hereinafter set forth. Capitalized terms used in
this Warrant and not otherwise defined herein shall have the respective meanings
specified in SECTION 9 hereof.

      1.    TERM. The term of this Warrant shall commence on April 23, 2007 and
shall expire at 6:00 p.m., Eastern Time, on April 23, 2012 (such period being
the "TERM").

      2.    METHOD OF EXERCISE; PAYMENT; ISSUANCE OF NEW WARRANT; TRANSFER AND
EXCHANGE.

      (a)   TIME OF EXERCISE. The purchase rights represented by this Warrant
may be exercised in whole or in part during the Term.

      (b)   METHOD OF EXERCISE. The Holder hereof may exercise this Warrant, in
whole or in part, by the surrender of this Warrant (with the exercise form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment to the Issuer of an amount of consideration therefor equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of Warrant Stock with respect to which this Warrant is then being
exercised, payable at such Holder's election (i) by certified or official bank
check or by wire transfer to an account designated by the Issuer, (ii) by
"cashless exercise" in accordance with the provisions of SUBSECTION (C) of this
SECTION 2, but only when a registration statement under the Securities Act
providing for the resale of the Warrant Stock is not then in effect, or (iii) by
a combination of the foregoing methods of payment selected by the Holder of this
Warrant.

                                       1
<PAGE>

      (c)   CASHLESS EXERCISE. Notwithstanding any provisions herein to the
contrary and commencing one (1) year following the Original Issue Date if (i)
the Per Share Market Value of one share of Common Stock is greater than the
Warrant Price (at the date of calculation as set forth below) and (ii) a
registration statement under the Securities Act providing for the resale of the
Warrant Stock is not then in effect by the date such registration statement is
required to be effective pursuant to the Registration Rights Agreement (as
defined in the Purchase Agreement) or not effective at any time during the
Effectiveness Period (as defined in the Registration Rights Agreement) in
accordance with the terms of the Registration Rights Agreement, unless the
registration statement is not effective as a result of the Issuer exercising its
rights under SECTION 3(N) of the Registration Rights Agreement, in lieu of
exercising this Warrant by payment of cash, the Holder may exercise this Warrant
by a cashless exercise and shall receive the number of shares of Common Stock
equal to an amount (as determined below) by surrender of this Warrant at the
principal office of the Issuer together with the properly endorsed Notice of
Exercise in which event the Issuer shall issue to the Holder a number of shares
of Common Stock computed using the following formula:

            X = Y - (A)(Y)
                    ------
                      B

Where       X =   the number of shares of Common Stock to be issued to the
                  Holder.

            Y =   the number of shares of Common Stock purchasable upon exercise
                  of all of the Warrant or, if only a portion of the Warrant is
                  being exercised, the portion of the Warrant being exercised.

            A =   the Warrant Price.

            B =   the Per Share Market Value of one share of Common Stock.

      (d)   ISSUANCE OF STOCK CERTIFICATES. In the event of any exercise of this
Warrant in accordance with and subject to the terms and conditions hereof,
certificates for the shares of Warrant Stock so purchased shall be dated the
date of such exercise and delivered to the Holder hereof within a reasonable
time, not exceeding three (3) Trading Days after such exercise (the "DELIVERY
DATE") or, at the request of the Holder (provided that a registration statement
under the Securities Act providing for the resale of the Warrant Stock is then
in effect), issued and delivered to the Depository Trust Company ("DTC") account
on the Holder's behalf via the Deposit Withdrawal Agent Commission System
("DWAC") within a reasonable time, not exceeding three (3) Trading Days after
such exercise, and the Holder hereof shall be deemed for all purposes to be the
holder of the shares of Warrant Stock so purchased as of the date of such
exercise. Notwithstanding the foregoing to the contrary, the Issuer or its
transfer agent shall only be obligated to issue and deliver the shares to the
DTC on a holder's behalf via DWAC if such exercise is in connection with a sale
and the Issuer and its transfer agent are participating in DTC through the DWAC
system. The Holder shall deliver this original Warrant, or an indemnification
undertaking with respect to such Warrant in the case of its loss, theft or
destruction, at such time that this Warrant is fully exercised. With respect to
partial exercises of this Warrant, the Issuer shall keep written records for the
Holder of the number of shares of Warrant Stock exercised as of each date of
exercise.

                                       2
<PAGE>

      (e)   COMPENSATION FOR BUY-IN ON FAILURE TO TIMELY DELIVER CERTIFICATES
UPON EXERCISE. In addition to any other rights available to the Holder, if the
Issuer fails to cause its transfer agent to transmit to the Holder a certificate
or certificates representing the Warrant Stock pursuant to an exercise on or
before the Delivery Date, and if after such date the Holder is required by its
broker to purchase (in an open market transaction or otherwise) shares of Common
Stock to deliver in satisfaction of a sale by the Holder of the Warrant Stock
which the Holder anticipated receiving upon such exercise (a "Buy-In"), then the
Issuer 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 shares of Warrant Stock that the Issuer 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 shares of Warrant Stock 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 Issuer 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 Issuer shall be required to pay the Holder $1,000. The
Holder shall provide the Issuer written notice indicating the amounts payable to
the Holder in respect of the Buy-In, together with applicable confirmations and
other evidence reasonably requested by the Issuer. 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 Issuer's failure to timely deliver
certificates representing shares of Common Stock upon exercise of this Warrant
as required pursuant to the terms hereof.

      (f)   TRANSFERABILITY OF WARRANT. Subject to SECTION 2(H) hereof, this
Warrant may be transferred by a Holder, in whole or in part, without the consent
of the Issuer. If transferred pursuant to this paragraph, this Warrant may be
transferred on the books of the Issuer by the Holder hereof in person or by duly
authorized attorney, upon surrender of this Warrant at the principal office of
the Issuer, properly endorsed (by the Holder executing an assignment in the form
attached hereto) and upon payment of any necessary transfer tax or other
governmental charge imposed upon such transfer. This Warrant is exchangeable at
the principal office of the Issuer for Warrants to purchase the same aggregate
number of shares of Warrant Stock, each new Warrant to represent the right to
purchase such number of shares of Warrant Stock as the Holder hereof shall
designate at the time of such exchange. All Warrants issued on transfers or
exchanges shall be dated the Original Issue Date and shall be identical with
this Warrant except as to the number of shares of Warrant Stock issuable
pursuant thereto.

      (g)   CONTINUING RIGHTS OF HOLDER. The Issuer will, at the time of or at
any time after each exercise of this Warrant, upon the request of the Holder
hereof, acknowledge in writing the extent, if any, of its continuing obligation
to afford to such Holder all rights to which such Holder shall continue to be
entitled after such exercise in accordance with the terms of this Warrant;
PROVIDED that if any such Holder shall fail to make any such request, the
failure shall not affect the continuing obligation of the Issuer to afford such
rights to such Holder.

                                       3
<PAGE>

      (h)   COMPLIANCE WITH SECURITIES LAWS.

            (i)   The Holder of this Warrant, by acceptance hereof, acknowledges
      that this Warrant and the shares of Warrant Stock to be issued upon
      exercise hereof are being acquired solely for the Holder's own account and
      not as a nominee for any other party, and for investment, and that the
      Holder will not offer, sell or otherwise dispose of this Warrant or any
      shares of Warrant Stock to be issued upon exercise hereof except pursuant
      to an effective registration statement, or an exemption from registration,
      under the Securities Act and any applicable state securities laws.

            (ii)  Except as provided in paragraph (iii) below, this Warrant and
      all certificates representing shares of Warrant Stock issued upon exercise
      hereof shall be stamped or imprinted with a legend in substantially the
      following form:

            THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE
            UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE
            SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
            ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
            TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED
            UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE
            SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN
            OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER
            THAT REGISTRATION OF SUCH SECURITIES UNDER THE
            SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
            STATE SECURITIES LAWS IS NOT REQUIRED.

            (iii) The Issuer agrees to reissue this Warrant or certificates
      representing any of the Warrant Stock, without the legend set forth above
      if at such time, prior to making any transfer of any such securities, the
      Holder shall give written notice to the Issuer describing the manner and
      terms of such transfer. Such proposed transfer will not be effected until:
      (a) either (i) the Issuer has received an opinion of counsel reasonably
      satisfactory to the Issuer, to the effect that the registration of such
      securities under the Securities Act is not required in connection with
      such proposed transfer, (ii) a registration statement under the Securities
      Act covering such proposed disposition has been filed by the Issuer with
      the Securities and Exchange Commission and has become effective under the
      Securities Act, (iii) the Issuer has received other evidence reasonably
      satisfactory to the Issuer that such registration and qualification under
      the Securities Act and state securities laws are not required, or (iv) the
      Holder provides the Issuer with reasonable assurances that such security
      can be sold pursuant to Rule 144 under the Securities Act; and (b) either
      (i) the Issuer has received an opinion of counsel reasonably satisfactory
      to the Issuer, to the effect that registration or qualification under the
      securities or "blue sky" laws of any state is not required in connection
      with such proposed disposition, or (ii) compliance with applicable state
      securities or "blue sky" laws has been effected or a valid exemption
      exists with respect thereto. The Issuer will respond to any such notice
      from a holder within three (3) Trading Days. In the case of any proposed
      transfer under this SECTION 2(H), the Issuer will use reasonable efforts
      to comply with any such applicable state securities or "blue sky" laws,
      but shall in no event be required, (x) to qualify to do business in any
      state where it is not then qualified, (y) to take any action that would
      subject it to tax or to the general service of process in any state where
      it is not then subject, or (z) to comply with state securities or "blue
      sky" laws of any state for which registration by coordination is

                                       4
<PAGE>

      unavailable to the Issuer. The restrictions on transfer contained in this
      SECTION 2(H) shall be in addition to, and not by way of limitation of, any
      other restrictions on transfer contained in any other section of this
      Warrant. Whenever a certificate representing the Warrant Stock is required
      to be issued to a the Holder without a legend, in lieu of delivering
      physical certificates representing the Warrant Stock, the Issuer shall
      cause its transfer agent to electronically transmit the Warrant Stock to
      the Holder by crediting the account of the Holder's Prime Broker with DTC
      through its DWAC system (to the extent not inconsistent with any
      provisions of this Warrant or the Purchase Agreement).

      (i)   ACCREDITED INVESTOR STATUS. In no event may the Holder exercise this
Warrant in whole or in part unless the Holder is an "accredited investor" as
defined in Regulation D under the Securities Act.

      3.    STOCK FULLY PAID; RESERVATION AND LISTING OF SHARES; COVENANTS.

      (a)   STOCK FULLY PAID. The Issuer represents, warrants, covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise hereunder will, when issued in accordance with the
terms of this Warrant, be duly authorized, validly issued, fully paid and
non-assessable and free from all taxes, liens and charges. The Issuer further
covenants and agrees that during the period within which this Warrant may be
exercised, the Issuer will at all times have authorized and reserved for the
purpose of the issuance upon exercise of this Warrant a number of authorized but
unissued shares of Common Stock equal to at least one hundred percent (100%) of
the number of shares of Common Stock issuable upon exercise of this Warrant
without regard to any limitations on exercise.

      (b)   RESERVATION. If any shares of Common Stock required to be reserved
for issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any Governmental Authority under any
federal or state law before such shares may be so issued, the Issuer will in
good faith use its best efforts as expeditiously as possible at its expense to
cause such shares to be duly registered or qualified. If the Issuer shall list
any shares of Common Stock on any securities exchange or market it will, at its
expense, list thereon, and maintain and increase when necessary such listing,
of, all shares of Warrant Stock from time to time issued upon exercise of this
Warrant or as otherwise provided hereunder (PROVIDED that such Warrant Stock has
been registered pursuant to a registration statement under the Securities Act
then in effect), and, to the extent permissible under the applicable securities
exchange rules, all unissued shares of Warrant Stock which are at any time
issuable hereunder, so long as any shares of Common Stock shall be so listed.
The Issuer will also so list on each securities exchange or market, and will
maintain such listing of, any other securities which the Holder of this Warrant
shall be entitled to receive upon the exercise of this Warrant if at the time
any securities of the same class shall be listed on such securities exchange or
market by the Issuer.

      (c)   COVENANTS. The Issuer shall not by any action including, without
limitation, amending the Certificate of Incorporation or the by-laws of the
Issuer, or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other 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 the Holder hereof against dilution (to the extent
specifically provided herein) or impairment. Without limiting the generality of
the foregoing, the Issuer will (i) not permit the par value, if any, of its
Common Stock to exceed the then effective Warrant Price, (ii) not amend or
modify any provision of the Certificate of Incorporation or by-laws of the

                                       5
<PAGE>

Issuer in any manner that would adversely affect the rights of the Holders of
the Warrants, (iii) take all such action as may be reasonably necessary in order
that the Issuer may validly and legally issue fully paid and nonassessable
shares of Common Stock, free and clear of any liens, claims, encumbrances and
restrictions (other than as provided herein) upon the exercise of this Warrant,
and (iv) use its best efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof as may be
reasonably necessary to enable the Issuer to perform its obligations under this
Warrant.

      (d)   LOSS, THEFT, DESTRUCTION, MUTILATION OF WARRANTS. Upon receipt of
evidence satisfactory to the Issuer of the ownership of and the loss, theft,
destruction or mutilation of any Warrant and, in the case of any such loss,
theft or destruction, upon receipt of indemnity or security satisfactory to the
Issuer or, in the case of any such mutilation, upon surrender and cancellation
of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

      (e)   PAYMENT OF TAXES. The Issuer will pay any documentary stamp taxes
attributable to the initial issuance of the Warrant Stock issuable upon exercise
of this Warrant; PROVIDED, HOWEVER, that the Issuer shall not be required to pay
any tax or taxes which may be payable in respect of any transfer involved in the
issuance or delivery of any certificates representing Warrant Stock in a name
other than that of the Holder in respect to which such shares are issued.

      4.    ADJUSTMENT OF WARRANT PRICE AND NUMBER OF SHARES ISSUABLE UPON
EXERCISE. The Warrant Price and the number of shares of Warrant Stock that may
be purchased upon exercise of this Warrant shall be subject to adjustment from
time to time as set forth in this SECTION 4. The Issuer shall give the Holder
notice of any event described below which requires an adjustment pursuant to
this SECTION 4 in accordance with the notice provisions set forth in SECTION 5.

      (a)   RECAPITALIZATION, REORGANIZATION, RECLASSIFICATION, CONSOLIDATION,
MERGER OR SALE.

            (i)   In case the Issuer after the Original Issue Date shall do any
      of the following (each, a "TRIGGERING EVENT"): (a) consolidate or merge
      with or into any other Person and the Issuer shall not be the continuing
      or surviving Person of such consolidation or merger, or (b) permit any
      other Person to consolidate with or merge into the Issuer and the Issuer
      shall be the continuing or surviving Person but, in connection with such
      consolidation or merger, any Capital Stock of the Issuer shall be changed
      into or exchanged for Securities of any other Person or cash or any other
      property, or (c) transfer all or substantially all of its properties or
      assets to any other Person, or (d) effect a capital reorganization or
      reclassification of its Capital Stock, then, and in the case of each such
      Triggering Event, proper provision shall be made to the Warrant Price and
      the number of shares of Warrant Stock that may be purchased upon exercise
      of this Warrant so that, upon the basis and the terms and in the manner
      provided in this Warrant, the Holder of this Warrant shall be entitled
      upon the exercise hereof at any time after the consummation of such
      Triggering Event, to the extent this Warrant is not exercised prior to
      such Triggering Event, to receive at the Warrant Price as adjusted to take
      into account the consummation of such Triggering Event, in lieu of the
      Common Stock issuable upon such exercise of this Warrant prior to such
      Triggering Event, the Securities, cash and property to which such Holder
      would have been entitled upon the consummation of such Triggering Event if
      such Holder had exercised the rights represented by this Warrant

                                       6
<PAGE>

      immediately prior thereto (including the right of a shareholder to elect
      the type of consideration it will receive upon a Triggering Event),
      subject to adjustments (subsequent to such corporate action) as nearly
      equivalent as possible to the adjustments provided for elsewhere in this
      SECTION 4, and the Warrant Price shall be adjusted to equal the product of
      (A) the closing price of the common stock of the continuing or surviving
      Person as a result of such Triggering Event as of the date immediately
      preceding the date of the consummation of such Triggering Event multiplied
      by (B) the quotient of (i) the Warrant Price divided by (ii) the Per Share
      Market Value of the Common Stock as of the date immediately preceding the
      Original Issue Date; PROVIDED, HOWEVER, the Holder at its option may elect
      to receive an amount in cash equal to the value of this Warrant calculated
      in accordance with the Black-Scholes formula. Immediately upon the
      occurrence of a Triggering Event, the Issuer shall notify the Holder in
      writing of such Triggering Event and provide the calculations in
      determining the number of shares of Warrant Stock issuable upon exercise
      of the new warrant and the adjusted Warrant Price. Upon the Holder's
      request, the continuing or surviving Person as a result of such Triggering
      Event shall issue to the Holder a new warrant of like tenor evidencing the
      right to purchase the adjusted number of shares of Warrant Stock and the
      adjusted Warrant Price pursuant to the terms and provisions of this
      SECTION 4(A)(I). Notwithstanding the foregoing to the contrary, this
      SECTION 4(A)(I) shall only apply if the surviving entity pursuant to any
      such Triggering Event has a class of equity securities registered pursuant
      to the Securities Exchange Act of 1934, as amended, and its common stock
      is listed or quoted on a national securities exchange, national automated
      quotation system or the OTC Bulletin Board. In the event that the
      surviving entity pursuant to any such Triggering Event is not a public
      company (or similar Person) that is registered pursuant to the Securities
      Exchange Act of 1934, as amended, or its common stock is not listed or
      quoted on a national securities exchange, national automated quotation
      system or the OTC Bulletin Board, then the Holder shall have the right to
      demand that the Issuer pay to the Holder an amount in cash equal to the
      value of this Warrant calculated in accordance with the Black-Scholes
      formula.

            (ii)  In the event that the Holder has elected not to exercise this
      Warrant prior to the consummation of a Triggering Event and has also
      elected not to receive an amount in cash equal to the value of this
      Warrant calculated in accordance with the Black-Scholes formula pursuant
      to the provisions of SECTION 4(A)(I) above, so long as the surviving
      entity pursuant to any Triggering Event is a company that has a class of
      equity securities registered pursuant to the Securities Exchange Act of
      1934, as amended, and its common stock is listed or quoted on a national
      securities exchange, national automated quotation system or the OTC
      Bulletin Board, the surviving entity and/or each Person (other than the
      Issuer) which may be required to deliver any Securities, cash or property
      upon the exercise of this Warrant as provided herein shall assume, by
      written instrument delivered to, and reasonably satisfactory to, the
      Holder of this Warrant, (A) the obligations of the Issuer under this
      Warrant (and if the Issuer shall survive the consummation of such
      Triggering Event, such assumption shall be in addition to, and shall not
      release the Issuer from, any continuing obligations of the Issuer under
      this Warrant) and (B) the obligation to deliver to such Holder such
      Securities, cash or property as, in accordance with the foregoing
      provisions of this SUBSECTION (A), such Holder shall be entitled to
      receive, and the surviving entity and/or each such Person shall have
      similarly delivered to such Holder an opinion of counsel for the surviving
      entity and/or each such Person, which counsel shall be reasonably
      satisfactory to such Holder, or in the alternative, a written
      acknowledgement executed by the President or Chief Financial Officer of
      the Issuer, stating that this Warrant shall thereafter continue in full
      force and effect and the terms hereof (including, without limitation, all
      of the provisions of this SUBSECTION (A)) shall be applicable to the
      Securities, cash or property which the surviving entity and/or each such
      Person may be required to deliver upon any exercise of this Warrant or the
      exercise of any rights pursuant hereto.

                                       7
<PAGE>

      (b)   STOCK DIVIDENDS, SUBDIVISIONS AND COMBINATIONS. If at any time the
Issuer shall:

            (i)   make or issue or set a record date for the holders of the
      Common Stock for the purpose of entitling them to receive a dividend
      payable in, or other distribution of, shares of Common Stock,

            (ii)  subdivide its outstanding shares of Common Stock into a larger
      number of shares of Common Stock, or

            (iii) combine its outstanding shares of Common Stock into a smaller
      number of shares of Common Stock,

then (1) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (2) the Warrant Price then in
effect shall be adjusted to equal (A) the Warrant Price then in effect
multiplied by the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the adjustment divided by (B) the number of
shares of Common Stock for which this Warrant is exercisable immediately after
such adjustment.

      (c)   CERTAIN OTHER DISTRIBUTIONS. If at any time the Issuer shall make or
issue or set a record date for the holders of the Common Stock for the purpose
of entitling them to receive any dividend or other distribution of:

            (i)   cash (other than a cash dividend payable out of earnings or
      earned surplus legally available for the payment of dividends under the
      laws of the jurisdiction of incorporation of the Issuer),

            (ii)  any evidences of its indebtedness, any shares of stock of any
      class or any other securities or property of any nature whatsoever (other
      than cash, Common Stock Equivalents or Additional Shares of Common Stock),
      or

            (iii) any warrants or other rights to subscribe for or purchase any
      evidences of its indebtedness, any shares of stock of any class or any
      other securities or property of any nature whatsoever (other than cash,
      Common Stock Equivalents or Additional Shares of Common Stock), then (1)
      the number of shares of Common Stock for which this Warrant is exercisable
      shall be adjusted to equal the product of the number of shares of Common
      Stock for which this Warrant is exercisable immediately prior to such
      adjustment multiplied by a fraction (A) the numerator of which shall be
      the Per Share Market Value of Common Stock at the date of taking such
      record and (B) the denominator of which shall be such Per Share Market
      Value minus the amount allocable to one share of Common Stock of any such
      cash so distributable and of the fair value (as determined in good faith
      by the Board of Directors of the Issuer and supported by an opinion from

                                       8
<PAGE>

      an investment banking firm mutually agreed upon by the Issuer and the
      Holder) of any and all such evidences of indebtedness, shares of stock,
      other securities or property or warrants or other subscription or purchase
      rights so distributable, and (2) the Warrant Price then in effect shall be
      adjusted to equal (A) the Warrant Price then in effect multiplied by the
      number of shares of Common Stock for which this Warrant is exercisable
      immediately prior to the adjustment divided by (B) the number of shares of
      Common Stock for which this Warrant is exercisable immediately after such
      adjustment. A reclassification of the Common Stock (other than a change in
      par value, or from par value to no par value or from no par value to par
      value) into shares of Common Stock and shares of any other class of stock
      shall be deemed a distribution by the Issuer to the holders of its Common
      Stock of such shares of such other class of stock within the meaning of
      this SECTION 4(C) and, if the outstanding shares of Common Stock shall be
      changed into a larger or smaller number of shares of Common Stock as a
      part of such reclassification, such change shall be deemed a subdivision
      or combination, as the case may be, of the outstanding shares of Common
      Stock within the meaning of SECTION 4(B).

      (d)   ISSUANCE OF ADDITIONAL SHARES OF COMMON STOCK. In the event the
Issuer shall at any time within two (2) years following the Original Issuance
Date (the "FULL RATCHET PERIOD") issue any Additional Shares of Common Stock
(otherwise than as provided in the foregoing SUBSECTIONS (B) through (c) of this
SECTION 4), at a price per share less than the Warrant Price then in effect or
without consideration, then the Warrant Price upon each such issuance shall be
adjusted to the price equal to the consideration per share paid for such
Additional Shares of Common Stock.

      (e)   ISSUANCE OF COMMON STOCK EQUIVALENTS. In the event the Issuer shall
at any time within the Full Ratchet Period take a record of the holders of its
Common Stock for the purpose of entitling them to receive a distribution of, or
shall in any manner (whether directly or by assumption in a merger in which the
Issuer is the surviving Person) issue or sell, any Common Stock Equivalents,
whether or not the rights to exchange or convert thereunder are immediately
exercisable, and the price per share for which Common Stock is issuable upon
such conversion or exchange shall be less than the Warrant Price in effect
immediately prior to the time of such issue or sale, or if, after any such
issuance of Common Stock Equivalents, the price per share for which Additional
Shares of Common Stock may be issuable thereafter is amended or adjusted, and
such price as so amended shall be less than the Warrant Price in effect at the
time of such amendment or adjustment, then the Warrant Price then in effect
shall be adjusted as provided in SECTION 4(D). No further adjustments of the
number of shares of Common Stock for which this Warrant is exercisable and the
Warrant Price then in effect shall be made upon the actual issue of such Common
Stock upon conversion or exchange of such Common Stock Equivalents.

      (f)   SUBSEQUENT COMMON STOCK AND COMMON STOCK EQUIVALENTS ISSUES. In the
event the Company, shall, at any time after the Full Ratchet Period, issue or
sell any Additional Shares of Common Stock or Common Stock Equivalents
(otherwise than as provided in the foregoing SUBSECTIONS (A) THROUGH (E) OF THIS
SECTION 4), at a price per share less than the Warrant Price, or without
consideration, the Warrant Price then in effect upon each such issuance shall be
adjusted to that price (rounded to the nearest cent) determined by multiplying
the Warrant Price by a fraction: (1) the numerator of which shall be equal to
the SUM of (A) the number of shares of Common Stock outstanding immediately
prior to the issuance of such Additional Shares of Common Stock PLUS (B) the
number of shares of Common Stock (rounded to the nearest whole share) which the
aggregate consideration for the total number of such Additional Shares of Common
Stock so issued would purchase at a price per share equal to the then Warrant
Price; and (2) the denominator of which shall be equal to the number of shares
of Common Stock outstanding immediately after the issuance of such Additional

                                       9
<PAGE>

Shares of Common Stock. No adjustment of the number of shares of Common Stock
shall be made upon the issuance of any Additional Shares of Common Stock which
are issued pursuant to the exercise of any warrants or other subscription or
purchase rights or pursuant to the exercise of any conversion or exchange rights
in any Common Stock Equivalents if any such adjustment shall previously have
been made upon the issuance of such warrants or other rights or upon the
issuance of such Common Stock Equivalents (or upon the issuance of any warrant
or other rights therefore).

      (g)   OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS UNDER THIS SECTION. The
following provisions shall be applicable to the making of adjustments of the
number of shares of Common Stock for which this Warrant is exercisable and the
Warrant Price then in effect provided for in this SECTION 4:

            (i)   COMPUTATION OF CONSIDERATION. To the extent that any
      Additional Shares of Common Stock or any Common Stock Equivalents (or any
      warrants or other rights therefor) shall be issued for cash consideration,
      the consideration received by the Issuer therefor shall be the amount of
      the cash received by the Issuer therefor, or, if such Additional Shares of
      Common Stock or Common Stock Equivalents are offered by the Issuer for
      subscription, the subscription price, or, if such Additional Shares of
      Common Stock or Common Stock Equivalents are sold to underwriters or
      dealers for public offering without a subscription offering, the initial
      public offering price (in any such case subtracting any amounts paid or
      receivable for accrued interest or accrued dividends and without taking
      into account any compensation, discounts or expenses paid or incurred by
      the Issuer for and in the underwriting of, or otherwise in connection
      with, the issuance thereof). In connection with any merger or
      consolidation in which the Issuer is the surviving Person (other than any
      consolidation or merger in which the previously outstanding shares of
      Common Stock of the Issuer shall be changed to or exchanged for the stock
      or other securities of another Person), the amount of consideration
      therefore shall be, deemed to be the fair value, as determined reasonably
      and in good faith by the Board, of such portion of the assets and business
      of the nonsurviving Person as the Board may determine to be attributable
      to such shares of Common Stock or Common Stock Equivalents, as the case
      may be. The consideration for any Additional Shares of Common Stock
      issuable pursuant to any warrants or other rights to subscribe for or
      purchase the same shall be the consideration received by the Issuer for
      issuing such warrants or other rights plus the additional consideration
      payable to the Issuer upon exercise of such warrants or other rights. The
      consideration for any Additional Shares of Common Stock issuable pursuant
      to the terms of any Common Stock Equivalents shall be the consideration
      received by the Issuer for issuing warrants or other rights to subscribe
      for or purchase such Common Stock Equivalents, plus the consideration paid
      or payable to the Issuer in respect of the subscription for or purchase of
      such Common Stock Equivalents, plus the additional consideration, if any,
      payable to the Issuer upon the exercise of the right of conversion or
      exchange in such Common Stock Equivalents. In the event of any
      consolidation or merger of the Issuer in which the Issuer is not the
      surviving Person or in which the previously outstanding shares of Common
      Stock of the Issuer shall be changed into or exchanged for the stock or
      other securities of another Person, or in the event of any sale of all or
      substantially all of the assets of the Issuer for stock or other
      securities of any Person, the Issuer shall be deemed to have issued a
      number of shares of its Common Stock for stock or securities or other
      property of the other Person computed on the basis of the actual exchange
      ratio on which the transaction was predicated, and for a consideration
      equal to the fair market value on the date of such transaction of all such
      stock or securities or other property of the other Person. In the event

                                       10
<PAGE>

      any consideration received by the Issuer for any securities consists of
      property other than cash, the fair market value thereof at the time of
      issuance or as otherwise applicable shall be as determined in good faith
      by the Board. In the event Common Stock is issued with other shares or
      securities or other assets of the Issuer for consideration which covers
      both, the consideration computed as provided in this SECTION 4(G)(I) shall
      be allocated among such securities and assets as determined in good faith
      by the Board.

            (ii)  WHEN ADJUSTMENTS TO BE MADE. The adjustments required by this
      SECTION 4 shall be made whenever and as often as any specified event
      requiring an adjustment shall occur, except that any adjustment of the
      number of shares of Common Stock for which this Warrant is exercisable
      that would otherwise be required may be postponed (except in the case of a
      subdivision or combination of shares of the Common Stock, as provided for
      in SECTION 4(B)) up to, but not beyond the date of exercise if such
      adjustment either by itself or with other adjustments not previously made
      adds or subtracts less than one percent (1%) of the shares of Common Stock
      for which this Warrant is exercisable immediately prior to the making of
      such adjustment. Any adjustment representing a change of less than such
      minimum amount (except as aforesaid) which is postponed shall be carried
      forward and made (x) as soon as such adjustment, together with other
      adjustments required by this SECTION 4 and not previously made, would
      result in a minimum adjustment, or (y) on the date of exercise. For the
      purpose of any adjustment, any specified event shall be deemed to have
      occurred at the close of business on the date of its occurrence.

            (iii) FRACTIONAL INTERESTS. In computing adjustments under this
      SECTION 4, fractional interests in Common Stock shall be taken into
      account to the nearest one one-hundredth (1/100th) of a share.

            (iv)  WHEN ADJUSTMENT NOT REQUIRED. If the Issuer shall take a
      record of the holders of its Common Stock for the purpose of entitling
      them to receive a dividend or distribution or subscription or purchase
      rights and shall, thereafter and before the distribution to stockholders
      thereof, legally abandon its plan to pay or deliver such dividend,
      distribution, subscription or purchase rights, then thereafter no
      adjustment shall be required by reason of the taking of such record and
      any such adjustment previously made in respect thereof shall be rescinded
      and annulled.

      (h)   FORM OF WARRANT AFTER ADJUSTMENTS. The form of this Warrant need not
be changed because of any adjustments in the Warrant Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

      (i)   ESCROW OF WARRANT STOCK. If after any property becomes distributable
pursuant to this SECTION 4 by reason of the taking of any record of the holders
of Common Stock, but prior to the occurrence of the event for which such record
is taken, and the Holder exercises this Warrant, any shares of Common Stock
issuable upon exercise by reason of such adjustment shall be deemed the last
shares of Common Stock for which this Warrant is exercised (notwithstanding any
other provision to the contrary herein) and such shares or other property shall
be held in escrow for the Holder by the Issuer to be issued to the Holder upon
and to the extent that the event actually takes place, upon payment of the
current Warrant Price. Notwithstanding any other provision to the contrary
herein, if the event for which such record was taken fails to occur or is
rescinded, then such escrowed shares shall be cancelled by the Issuer and
escrowed property returned.

                                       11
<PAGE>

      5.    NOTICE OF ADJUSTMENTS. Whenever the Warrant Price or Warrant Share
Number shall be adjusted pursuant to SECTION 4 hereof (for purposes of this
SECTION 5, each an "ADJUSTMENT"), the Issuer shall cause its Chief Financial
Officer to prepare and execute a certificate setting forth, in reasonable
detail, the event requiring the Adjustment, the amount of the Adjustment, the
method by which such Adjustment was calculated (including a description of the
basis on which the Board made any determination hereunder), and the Warrant
Price and Warrant Share Number after giving effect to such Adjustment, and shall
cause copies of such certificate to be delivered to the Holder of this Warrant
promptly after each Adjustment. Any dispute between the Issuer and the Holder of
this Warrant with respect to the matters set forth in such certificate may at
the option of the Holder of this Warrant be submitted to an Independent
Appraiser selected by the Holder; PROVIDED that the Issuer shall have ten (10)
days after receipt of notice from such Holder of its selection of such
Independent Appraiser to object thereto, in which case such Holder shall select
another such Independent Appraiser and the Issuer shall have no such right of
objection. The Independent Appraiser selected by the Holder of this Warrant as
provided in the preceding sentence shall be instructed to deliver a written
opinion as to such matters to the Issuer and such Holder within thirty (30) days
after submission to it of such dispute. Such opinion shall be final and binding
on the parties hereto. The costs and expenses of the initial firm selected as
Independent Appraiser shall be paid equally by the Issuer and the Holder and, in
the case of an objection by the Issuer, the costs and expenses of the subsequent
firm selected as Independent Appraiser shall be paid in full by the Issuer.

      6.    FRACTIONAL SHARES. No fractional shares of Warrant Stock will be
issued in connection with any exercise hereof, but in lieu of such fractional
shares, the Issuer shall round the number of shares to be issued upon exercise
up to the nearest whole number of shares.

      7.    OWNERSHIP CAP AND EXERCISE RESTRICTION. Notwithstanding anything to
the contrary set forth in this Warrant, at no time may a Holder of this Warrant
exercise this Warrant if the number of shares of Common Stock to be issued
pursuant to such exercise would exceed, when aggregated with all other shares of
Common Stock owned by such Holder at such time, the number of shares of Common
Stock which would result in such Holder beneficially owning (as determined in
accordance with Section 13(d) of the Exchange Act and the rules thereunder) in
excess of 9.99% of the then issued and outstanding shares of Common Stock;
PROVIDED, HOWEVER, that upon a holder of this Warrant providing the Issuer with
sixty-one (61) days notice (pursuant to SECTION 13 hereof) (the "WAIVER NOTICE")
that such Holder would like to waive this SECTION 7 with regard to any or all
shares of Common Stock issuable upon exercise of this Warrant, this SECTION 7
will be of no force or effect with regard to all or a portion of the Warrant
referenced in the Waiver Notice; PROVIDED, FURTHER, that this provision shall be
of no further force or effect during the sixty-one (61) days immediately
preceding the expiration of the term of this Warrant.

      8.    ISSUER'S REDEMPTION OPTION. If (A) the Per Share Market Value of the
Common Stock for any ten (10) consecutive Trading Days equals or exceeds $2.50
per share (as may be adjusted for any stock splits or combinations of the Common
Stock) and (B) the trading volume of the Common Stock for each Trading Day of
such ten (10) Trading Day period equals or exceeds 20,000 shares of Common
Stock, the Issuer may, at any time thereafter upon ten (10) Trading Days prior
written notice (the "ISSUER REDEMPTION NOTICE") to the Holder, redeem the
unexercised portion of this Warrant in cash at a price equal to the number of
shares of Warrant Stock with respect to the unexercised portion of this Warrant
multiplied by $0.001 (the "ISSUER REDEMPTION PRICE"); PROVIDED, THAT, in
connection with any redemption by the Issuer under this SECTION 8, (A) the
registration statement (the "REGISTRATION STATEMENT") filed by the Issuer with
the Securities and Exchange Commission providing for the resale of the Warrant
Stock and the shares of Common Stock issued pursuant to the Purchase Agreement

                                       12
<PAGE>

is then in effect and has been effective, without lapse or suspension of any
kind, for a period of sixty (60) consecutive calendar days, (B) trading in the
Common Stock shall not have been suspended by the Securities and Exchange
Commission or the OTC Bulletin Board (or other exchange or market on which the
Common Stock is trading), (C) the Issuer is in material compliance with the
terms and conditions of this Warrant and the other Transaction Documents (as
defined in the Purchase Agreement) and (D) the Issuer is not in possession of
any material non-public information; PROVIDED, FURTHER, that the Registration
Statement is in effect from the date of delivery of the Issuer Redemption Notice
until the date which is the later of (1) the date the Holder exercises the
Warrant pursuant to the Issuer Redemption Notice and (2) the twentieth (20th)
Trading Day after the Holder receives the Issuer Redemption Notice (the "EARLY
TERMINATION DATE"). The rights and privileges granted pursuant to this Warrant
with respect to the shares of Warrant Stock subject to the Issuer Redemption
Notice (the "REDEEMED WARRANT SHARES") shall expire on the Early Termination
Date if this Warrant is not exercised with respect to such Redeemed Warrant
Shares prior to such Early Termination Date. The Issuer's Redemption Notice
shall state the date of redemption which date shall be the twenty-first (21st)
Trading Day after the Issuer has delivered the Issuer's Redemption Notice (the
"ISSUER'S REDEMPTION Date"), the Issuer's Redemption Price and the number of
shares to be redeemed by the Issuer. The Issuer shall not send a Issuer's
Redemption Notice unless it has good and clear funds for a minimum of the amount
it intends to redeem in a bank account controlled by the Issuer. The Issuer
shall deliver the Issuer's Redemption Price to the Holder on the Issuer's
Redemption Date. Not later than five (5) days after receipt of the Issuer
Redemption Price, Holder shall return to the Issuer for cancellation the
original Warrant to be redeemed. If the Issuer fails to pay the Issuer's
Redemption Price by the Issuer's Redemption Date, the redemption will be
declared null and void. Notwithstanding anything in the foregoing to the
contrary, if the Holder may not exercise this Warrant as a result of the
restriction contained in SECTION 7 hereof, the Issuer Redemption Notice shall be
deemed null and void and shall not be deemed effective until the date that the
Holder may exercise this Warrant in accordance with SECTION 7 hereof.

      9.    DEFINITIONS. For the purposes of this Warrant, the following terms
have the following meanings:

            "ADDITIONAL SHARES OF COMMON STOCK" means all shares of Common Stock
      issued by the Issuer after the Original Issue Date, and all shares of
      Other Common, if any, issued by the Issuer after the Original Issue Date,
      except: (i) securities issued (other than for cash) in connection with a
      merger, acquisition, or consolidation that do not exceed 5% of the
      outstanding Common Stock of the Issuer as of the date of the Purchase
      Agreement (such percentage subject to adjustment in a manner consistent
      with the adjustments to the Warrant Price contemplated in SECTION 4
      hereof), (ii) securities issued pursuant to the conversion or exercise of
      convertible or exercisable securities issued or outstanding on or prior to
      the date of the Purchase Agreement or issued pursuant to the Purchase
      Agreement (so long as the conversion or exercise price in such securities
      are not amended to lower such price and/or adversely affect the Holders),
      (iii) the Warrant Stock, (iv) Common Stock issued or the issuance or
      grants of options to purchase Common Stock pursuant to the Company's stock
      option plans and employee stock purchase plans that either (x) exist on
      the date of the Purchase Agreement, or (y) do not exceed ten percent (10%)
      of the outstanding Common Stock of the Company as of the date of the
      Purchase Agreement, and (v) any warrants issued to the placement agent and
      its designees for the transactions contemplated by the Purchase Agreement.
      For the avoidance of doubt, notwithstanding clause (i) of this paragraph,
      in the event that the Company shall effect a merger or similar transaction
      permitted under SECTION 3.22(B)(I) of the Purchase Agreement, the amount
      of Common Stock issued in connection with such transaction that exceeds 5%
      of the outstanding Common Stock of the Company as of the Date of the
      Purchase Agreement shall nonetheless be subject to all of the provisions
      of SECTION 4 hereof.

                                       13
<PAGE>

            "BOARD" shall mean the Board of Directors of the Issuer.

            "CAPITAL STOCK" means and includes (i) any and all shares,
      interests, participations or other equivalents of or interests in (however
      designated) corporate stock, including, without limitation, shares of
      preferred or preference stock, (ii) all partnership interests (whether
      general or limited) in any Person which is a partnership, (iii) all
      membership interests or limited liability company interests in any limited
      liability company, and (iv) all equity or ownership interests in any
      Person of any other type.

            "CERTIFICATE OF INCORPORATION" means the Certificate of
      Incorporation of the Issuer as in effect on the Original Issue Date, and
      as hereafter from time to time amended, modified, supplemented or restated
      in accordance with the terms hereof and thereof and pursuant to applicable
      law.

            "COMMON STOCK" means the Common Stock, $0.001 par value per share,
      of the Issuer and any other Capital Stock into which such stock may
      hereafter be changed.

            "COMMON STOCK EQUIVALENT" means any Convertible Security or warrant,
      option or other right to subscribe for or purchase any Additional Shares
      of Common Stock or any Convertible Security.

            "CONVERTIBLE SECURITIES" means evidences of Indebtedness, shares of
      Capital Stock or other Securities which are or may be at any time
      convertible into or exchangeable for Additional Shares of Common Stock.
      The term "CONVERTIBLE SECURITY" means one of the Convertible Securities.

            "GOVERNMENTAL AUTHORITY" means any governmental, regulatory or
      self-regulatory entity, department, body, official, authority, commission,
      board, agency or instrumentality, whether federal, state or local, and
      whether domestic or foreign.

            "HOLDERS" mean the Persons who shall from time to time own any
      Warrant. The term "Holder" means one of the Holders.

            "INDEPENDENT APPRAISER" means a nationally recognized or major
      regional investment banking firm or firm of independent certified public
      accountants of recognized standing (which may be the firm that regularly
      examines the financial statements of the Issuer) that is regularly engaged
      in the business of appraising the Capital Stock or assets of corporations
      or other entities as going concerns, and which is not affiliated with
      either the Issuer or the Holder of any Warrant.

            "ISSUER" means Marketing Worldwide Corporation, a Delaware
      corporation, and its successors.

            "MAJORITY HOLDERS" means at any time the Holders of Warrants
      exercisable for a majority of the shares of Warrant Stock issuable under
      the Warrants at the time outstanding.

            "ORIGINAL ISSUE DATE" means April 23, 2007.

                                       14
<PAGE>

            "OTC BULLETIN BOARD" means the over-the-counter electronic bulletin
      board.

            "OTHER COMMON" means any other Capital Stock of the Issuer of any
      class which shall be authorized at any time after the date of this Warrant
      (other than Common Stock) and which shall have the right to participate in
      the distribution of earnings and assets of the Issuer without limitation
      as to amount.

            "OUTSTANDING COMMON STOCK" means, at any given time, the aggregate
      amount of outstanding shares of Common Stock, assuming full exercise,
      conversion or exchange (as applicable) of all options, warrants and other
      Securities which are convertible into or exercisable or exchangeable for,
      and any right to subscribe for, shares of Common Stock that are
      outstanding at such time.

            "PERSON" means an individual, corporation, limited liability
      company, partnership, joint stock company, trust, unincorporated
      organization, joint venture, Governmental Authority or other entity of
      whatever nature.

            "PER SHARE MARKET VALUE" means on any particular date (a) the last
      closing bid price per share of the Common Stock on such date on the OTC
      Bulletin Board or another registered national stock exchange on which the
      Common Stock is then listed, or if there is no such price on such date,
      then the closing bid price on such exchange or quotation system on the
      date nearest preceding such date, or (b) if the Common Stock is not listed
      then on the OTC Bulletin Board or any registered national stock exchange,
      the last closing bid price for a share of Common Stock in the
      over-the-counter market, as reported by the OTC Bulletin Board or in the
      National Quotation Bureau Incorporated or similar organization or agency
      succeeding to its functions of reporting prices) at the close of business
      on such date, or (c) if the Common Stock is not then reported by the OTC
      Bulletin Board or the National Quotation Bureau Incorporated (or similar
      organization or agency succeeding to its functions of reporting prices),
      then the "Pink Sheet" quotes for the applicable Trading Days preceding
      such date of determination, or (d) if the Common Stock is not then
      publicly traded the fair market value of a share of Common Stock as
      determined by an Independent Appraiser selected in good faith by the
      Majority Holders; PROVIDED, HOWEVER, that the Issuer, after receipt of the
      determination by such Independent Appraiser, shall have the right to
      select an additional Independent Appraiser, in which case, the fair market
      value shall be equal to the average of the determinations by each such
      Independent Appraiser; and PROVIDED, FURTHER that all determinations of
      the Per Share Market Value shall be appropriately adjusted for any stock
      dividends, stock splits or other similar transactions during such period.
      The determination of fair market value by an Independent Appraiser shall
      be based upon the fair market value of the Issuer determined on a going
      concern basis as between a willing buyer and a willing seller and taking
      into account all relevant factors determinative of value, and shall be
      final and binding on all parties. In determining the fair market value of
      any shares of Common Stock, no consideration shall be given to any
      restrictions on transfer of the Common Stock imposed by agreement or by
      federal or state securities laws, or to the existence or absence of, or
      any limitations on, voting rights.

            "PURCHASE AGREEMENT" means the Series A Convertible Preferred Stock
      Purchase Agreement dated as of April 23, 2007, among the Issuer and the
      Purchasers.

                                       15
<PAGE>

            "PURCHASERS" means the purchasers of the Series A Convertible
      Preferred Stock and the Warrants issued by the Issuer pursuant to the
      Purchase Agreement.

            "SECURITIES" means any debt or equity securities of the Issuer,
      whether now or hereafter authorized, any instrument convertible into or
      exchangeable for Securities or a Security, and any option, warrant or
      other right to purchase or acquire any Security. "Security" means one of
      the Securities.

            "SECURITIES ACT" means the Securities Act of 1933, as amended, or
      any similar federal statute then in effect.

            "SUBSIDIARY" means any corporation at least 50% of whose outstanding
      Voting Stock shall at the time be owned directly or indirectly by the
      Issuer or by one or more of its Subsidiaries, or by the Issuer and one or
      more of its Subsidiaries.

            "TERM" has the meaning specified in SECTION 1 hereof.

            "TRADING DAY" means (a) a day on which the Common Stock is traded on
      the OTC Bulletin Board, or (b) if the Common Stock is not traded on the
      OTC Bulletin Board, a day on which the Common Stock is quoted in the
      over-the-counter market as reported by the National Quotation Bureau
      Incorporated (or any similar organization or agency succeeding its
      functions of reporting prices); PROVIDED, HOWEVER, that in the event that
      the Common Stock is not listed or quoted as set forth in (a) or (b)
      hereof, then Trading Day shall mean any day except Saturday, Sunday and
      any day which shall be a legal holiday or a day on which banking
      institutions in the State of New York are authorized or required by law or
      other government action to close.

            "VOTING STOCK" means, as applied to the Capital Stock of any
      corporation, Capital Stock of any class or classes (however designated)
      having ordinary voting power for the election of a majority of the members
      of the Board of Directors (or other governing body) of such corporation,
      other than Capital Stock having such power only by reason of the happening
      of a contingency.

            "WARRANTS" means the Warrants issued and sold pursuant to the
      Purchase Agreement, including, without limitation, this Warrant, and any
      other warrants of like tenor issued in substitution or exchange for any
      thereof pursuant to the provisions of SECTION 2(C), 2(D) OR 2(E) hereof or
      of any of such other Warrants.

            "WARRANT PRICE" initially means $0.70, as such price may be adjusted
      from time to time as shall result from the adjustments specified in this
      Warrant, including SECTION 4 hereto.

            "WARRANT SHARE NUMBER" means at any time the aggregate number of
      shares of Warrant Stock which may at such time be purchased upon exercise
      of this Warrant, after giving effect to all prior adjustments and
      increases to such number made or required to be made under the terms
      hereof.

            "WARRANT STOCK" means Common Stock issuable upon exercise of any
      Warrant or Warrants or otherwise issuable pursuant to any Warrant or
      Warrants.

                                       16
<PAGE>

      10.   OTHER NOTICES. In case at any time:

                        (A)   the Issuer shall make any distributions to the
                              holders of Common Stock; or

                        (B)   the Issuer shall authorize the granting to all
                              holders of its Common Stock of rights to subscribe
                              for or purchase any shares of Capital Stock of any
                              class or other rights; or

                        (C)   there shall be any reclassification of the Capital
                              Stock of the Issuer; or

                        (D)   there shall be any capital reorganization by the
                              Issuer; or

                        (E)   there shall be any (i) consolidation or merger
                              involving the Issuer or (ii) sale, transfer or
                              other disposition of all or substantially all of
                              the Issuer's property, assets or business (except
                              a merger or other reorganization in which the
                              Issuer shall be the surviving corporation and its
                              shares of Capital Stock shall continue to be
                              outstanding and unchanged and except a
                              consolidation, merger, sale, transfer or other
                              disposition involving a wholly-owned Subsidiary);
                              or

                        (F)   there shall be a voluntary or involuntary
                              dissolution, liquidation or winding-up of the
                              Issuer or any partial liquidation of the Issuer or
                              distribution to holders of Common Stock;

then, in each of such cases, the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer shall close or a record shall
be taken for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be. Such notice shall be given at least twenty
(20) days prior to the action in question and not less than ten (10) days prior
to the record date or the date on which the Issuer's transfer books are closed
in respect thereto. This Warrant entitles the Holder to receive copies of all
financial and other information distributed or required to be distributed to the
holders of the Common Stock.

      11.   AMENDMENT AND WAIVER. Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), by a written instrument or written instruments executed by the
Issuer and the Majority Holders; PROVIDED, HOWEVER, that no such amendment or
waiver shall reduce the Warrant Share Number, increase the Warrant Price,
shorten the period during which this Warrant may be exercised or modify any
provision of this SECTION 11 without the consent of the Holder of this Warrant.
No consideration shall be offered or paid to any person to amend or consent to a
waiver or modification of any provision of this Warrant unless the same
consideration is also offered to all holders of the Warrants.

                                       17
<PAGE>

      12.   GOVERNING LAW; JURISDICTION. This Warrant shall be governed by and
construed in accordance with the internal laws of the State of Delaware, without
giving effect to any of the conflicts of law principles which would result in
the application of the substantive law of another jurisdiction. This Warrant
shall not be interpreted or construed with any presumption against the party
causing this Warrant to be drafted. The Issuer and the Holder agree that venue
for any dispute arising under this Warrant will lie exclusively in the state or
federal courts located in New York County, New York, and the parties irrevocably
waive any right to raise FORUM NON CONVENIENS or any other argument that New
York is not the proper venue. The Issuer and the Holder irrevocably consent to
personal jurisdiction in the state and federal courts of the state of New York.
The Issuer and the Holder consent to process being served in any such suit,
action or proceeding by mailing a copy thereof 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 in
this SECTION 12 shall affect or limit any right to serve process in any other
manner permitted by law. The Issuer and the Holder hereby agree that the
prevailing party in any suit, action or proceeding arising out of or relating to
this Warrant or the Purchase Agreement, shall be entitled to reimbursement for
reasonable legal fees from the non-prevailing party. The parties hereby waive
all rights to a trial by jury.

      13.   NOTICES. Any notice, demand, request, waiver or other communication
required or permitted to be given hereunder shall be in writing and shall be
effective (a) upon hand delivery by telecopy or facsimile at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses for such communications shall be:

If to the Issuer:                Marketing Worldwide Corporation
                                 2212 Grand Commerce Drive
                                 Howell, Michigan 48855
                                 Attention: James Marvin
                                 Tel. No.: (517) 540-0045
                                 Fax No.: (517) 540-0923
with copies (which copies
shall not constitute notice)
to:                              Weed & Co. LLP
                                 4695 Mac Arthur Court, Suite 1430
                                 Newport Beach, CA 92660
                                 Attention: Richard O. Weed
                                 Tel. No.: (949) 475-9086
                                 Fax No.: (949) 475-9087

If to any Holder:                At the address of such Holder set forth on
                                 EXHIBIT A to the Purchase Agreement, with
                                 copies to:

                                 Sadis & Goldberg LLP
                                 551 Fifth Avenue, 21st Floor
                                 New York, New York 10176
                                 Attention: Steven Huttler, Esq.
                                 Tel. No.: (212) 947-3793
                                 Fax No.: (212) 947-3796

                                       18
<PAGE>

      Any party hereto may from time to time change its address for notices by
giving written notice of such changed address to the other party hereto.

      14.   WARRANT AGENT. The Issuer may, by written notice to each Holder of
this Warrant, appoint an agent having an office in New York, New York for the
purpose of issuing shares of Warrant Stock on the exercise of this Warrant
pursuant to SECTION 2(E) hereof, exchanging this Warrant pursuant to SECTION
2(E) hereof or replacing this Warrant pursuant to SECTION 3(d) hereof, or any of
the foregoing, and thereafter any such issuance, exchange or replacement, as the
case may be, shall be made at such office by such agent.

      15.   REMEDIES. The Issuer stipulates that the remedies at law of the
Holder of this Warrant in the event of any default or threatened default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that, to the fullest extent permitted by
law, such terms may be specifically enforced by a decree for the specific
performance of any agreement contained herein or by an injunction against a
violation of any of the terms hereof or otherwise.

      16.   SUCCESSORS AND ASSIGNS. This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the successors and assigns of
the Issuer, the Holder hereof and (to the extent provided herein) the Holders of
Warrant Stock issued pursuant hereto, and shall be enforceable by any such
Holder or Holder of Warrant Stock.

      17.   CONSTRUCTION. This Warrant shall be deemed to be jointly drafted by
the Company and all the Holders and shall not be construed against any person as
the drafter hereof.

      18.   HEADINGS. The headings of the Sections of this Warrant are for
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

      19.   REGISTRATION RIGHTS. The Holder of this Warrant is entitled to the
benefit of certain registration rights with respect to the shares of Warrant
Stock issuable upon the exercise of this Warrant pursuant to the Registration
Rights Agreement and the registration rights with respect to the shares of
Warrant Stock issuable upon the exercise of this Warrant by any subsequent
Holder may only be assigned in accordance with the terms and provisions of the
Registrations Rights Agreement and SECTION 2(F) hereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       19
<PAGE>

      IN WITNESS WHEREOF, the Issuer has executed this Series A Warrant as of
the day and year first above written.

                                             MARKETING WORLDWIDE CORPORATION

                                             By: /s/ Michael Winzkowski
                                             Name: Michael Winzkowski
                                             Title: Chief Executive Officer

                                       20
<PAGE>

                                  EXERCISE FORM
                                SERIES A WARRANT

                         MARKETING WORLDWIDE CORPORATION

The undersigned _______________, pursuant to the provisions of the within
Warrant, hereby elects to purchase _____ shares of Common Stock of Marketing
Worldwide Corporation covered by the within Warrant.

Dated: ___________             Signature  ______________________________________

                               Address    ______________________________________
                                          ______________________________________

Number of shares of Common Stock beneficially owned or deemed beneficially owned
by the Holder on the date of Exercise:  _________________________________

The undersigned is an "accredited investor" as defined in Regulation D under the
Securities Act of 1933, as amended.

The undersigned intends that payment of the Warrant Price shall be made as
(check one):

            Cash Exercise_______

            Cashless Exercise_______

If the Holder has elected a Cash Exercise, the Holder shall pay the sum of
$________ by certified or official bank check (or via wire transfer) to the
Issuer in accordance with the terms of the Warrant.

If the Holder has elected a Cashless Exercise, a certificate shall be issued to
the Holder for the number of shares equal to the whole number portion of the
product of the calculation set forth below, which is ___________. The Company
shall pay a cash adjustment in respect of the fractional portion of the product
of the calculation set forth below in an amount equal to the product of the
fractional portion of such product and the Per Share Market Value on the date of
exercise, which product is _____________.

      X = Y - (A)(Y)
              ------
                B

Where:

The number of Ordinary Shares to be issued to the Holder _________________("X").

The number of Ordinary Shares purchasable upon exercise of all of the Warrant
or, if only a portion of the Warrant is being exercised, the portion of the
Warrant being exercised ___________________________ ("Y").

                                       21
<PAGE>

The Warrant Price ______________ ("A").

The Per Share Market Value of one Ordinary Share _______________________ ("B").

                                   ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the within Warrant and all rights evidenced thereby and does
irrevocably constitute and appoint _____________, attorney, to transfer the said
Warrant on the books of the within named corporation.

Dated: ___________             Signature  ______________________________________

                               Address    ______________________________________
                                          ______________________________________

                               PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the right to purchase _________ shares of Warrant Stock
evidenced by the within Warrant together with all rights therein, and does
irrevocably constitute and appoint ___________________, attorney, to transfer
that part of the said Warrant on the books of the within named corporation.

Dated: ___________             Signature  ______________________________________

                               Address    ______________________________________
                                          ______________________________________

                           FOR USE BY THE ISSUER ONLY:

This Warrant No. W-___ canceled (or transferred or exchanged) this _____ day of
___________, _____, shares of Common Stock issued therefor in the name of
_______________, Warrant No. W-_____ issued for ____ shares of Common Stock in
the name of _____________.

                                       22

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