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Client Services Agreement for Financial Plan This Kovack Advisors Choice Advisor Select Client Services Agreement (“Agreement”), is made and entered into as of this ______ day of ________________________, 2009, by and among Kovack Advisors, Inc., a U.S. Securities and Exchange Commission (“SEC”) Registered Investment Advisor, its servicing Investment Advisor Representative (collectively identified herein as “Kovack Advisors”) and __________________________________________________ (“Client”). By this Agreement, Client retains Kovack Advisors to provide investment management services on the following terms: 1. Investment Advisory Services Client acknowledges that the value and usefulness of the financial planning services provided by KAI depends on the information Client provides and Client’s active participation in the development and identification of Client’s financial planning objectives. In this regard, Client will provide KAI with copies of insurance policies, wills, trusts, business arrangements, tax returns and other documents that may be reasonably requested by KAI in order to complete the evaluation and provide recommendations to Client. KAI will provide the following services based on the information furnished by Client: •

A review of Client’s present financial position, including the following as appropriate: net worth statement, budget/cash flow analysis, risk assessment and income tax assessment.

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A review of Client’s financial goals, objectives, risk tolerance and expectations.

•

A written evaluation and analysis of the information Client provided and recommendations for Client’s personalized financial plan, including the items Client has checked below. Client understands that only those selected “Needs” provided below will be covered in the written evaluation and recommendations.

General Needs Educational Needs Retirement Needs Estate Planning Needs

Risk Management Services Survivor Income Needs Disability Income Needs Long Term Care Needs

Special Services Business Planning Needs Charitable Planning Needs Special Family Needs

•

Consultation regarding the potential implementation of KAI recommendations will be allocated for a period of up to three months from the date the presentation and written evaluation and analysis took place. However, the total consultation period may not extend beyond six months from the date of this Agreement.

•

In the event the client and KAI agree to extend this Agreement beyond six months, KAI will provide continued consultation, taking into account Client’s changing circumstances to the extent Client keeps KAI informed of these changes and provides KAI with updates to the documentation Client previously provided to KAI.

2. Risk Acknowledgement Client recognizes that the financial plan described in this Agreement involves KAI’s judgment and that his or her views regarding the economy and the securities markets cannot be guaranteed accurate. Client represents that ____________________________________________________________________________________________________ June 2009 6451 N. Federal Hwy, Ste 1201 | Fort Lauderdale, FL 33308 1 Fax: 954.208.7598

________________________________________________________________________ no party to this Agreement has made any guarantee, verbal or written, that Client’s investment objectives will be achieved, and KAI will not be liable for any action performed or not performed or for any errors in judgment or mistake in preparing the financial plan, in the absence of malfeasance, negligence or violation of applicable law. Nothing in this Agreement shall constitute a waiver or limitation of any rights which Client may have under the applicable state or federal law, including without limitation the state and federal securities laws. 3. Qualified Plans: In formulating the financial plan for Client’s qualified plan assets, KAI will consider the information Client provides to KAI concerning Client’s assets and investments that are not part of the qualified plan. KAI will take into account Client’s qualified plan assets. With respect to the qualified assets, KAI will make recommendations only with respect to those financial products offered under Client’s plan. KAI will be compensated for his/her investment advice with respect to Client’s qualified plan assets and, if applicable, for his/her investment advice with respect to Client’s non-qualified plan assets. Client understands that KAI, for a fee, may provide investment advisory services to Client’s employer with regard to the design of the qualified plan, including an analysis of the performance of current investment options under the plan and recommendations regarding the addition or deletion of particular investments. 4. Plan Recommendations KAI does not assume any obligation for the implementation of Client’s financial plan other than the consultation as outlined in this Agreement. Client should consult with legal counsel or other professionals deemed necessary in implementing recommendations contained in the plan. Implementation of any portion of the plan is entirely at Client’s discretion. Client understands that some recommendations contained in the financial plan are based in part on Client’s tax status. Client also understands that KAI is not in the business of rendering tax advice and any tax advice offered by him/her regarding the investment recommendations contained in the plan is offered independently of KAI. KAI will not have discretionary authority regarding financial decisions and will not be responsible for the accuracy of information obtained from other sources. Client understands that KAI provides similar services to other clients and that it receives fees for such services. The advice given and the actions taken with respect to such other clients may differ from advice given to Client. 5. Compensation Client will compensate KAI for all services furnished under this Agreement by the payment of fees in accordance with these provisions. It is agreed that the fees are in no way based on the capital gains or appreciation of Client’s funds.

Initial Plan Consultation For investment advisory services based on specific selected needs from Section 1 (above): A rate of $_______ / hour for financial planning services, plus out of pocket expenses (i.e., long distance calls, overnight mailings, travel expenses) will be assessed, with an estimate of _______ hours to complete the financial plan; OR a flat financial planning fee of $___________. An advance fee of $_______ is due upon requesting the financial planning services, which will be applied to the total, and the balance will be due upon presentation of the completed financial plan. ____________________________________________________________________________________________________ June 2009 6451 N. Federal Hwy, Ste 1201 | Fort Lauderdale, FL 33308 2 Fax: 954.208.7598

________________________________________________________________________ Annual Review of Plan For an annual review and update of Client’s previously provided financial plan: An annual review and update fee of $___________ OR an hourly rate of $_______ plus out of pocket expenses (i.e., long distance calls, overnight mailings, travel expenses) will be assessed, with an estimate of _______ hours to complete the financial plan review and update, which will be applied to the total, and the balance will be due upon presentation of the financial plan review and update. Fees will be determined by KAI based on preliminary assessment of the services agreed upon and the complexity of Client’s financial circumstances. If Client requests an annual review and update of the plan, the fee will be based on the complexity of each year’s review. The fee will be due and payable at the completion of the financial plan review and update, and will be in accordance with the agreed upon Fee Schedule. 6. Potential Conflicts of Interest KAI is directly affiliated with Kovack Securities, Inc. (“KSI”), a securities broker-dealer registered with the Securities and Exchange Commission and the Financial Industry Regulatory Authority (“FINRA”). Further, your KAI Advisor is also a registered representative of KSI. As a result, a potential conflict of interest may arise between the Client, KAI, and KSI in implementing transactions through KSI. Client understands that Client is under no obligation to implement the financial plan by executing transactions through KSI. If Client chooses in Client’s sole discretion to effect transactions with KSI, then KSI may collect transaction fees or commissions separate from the financial planning fees charged under this Agreement. Client also understands that certain officers, employees and/or other affiliates of KAI/KSI maintain various business relationships through which they receive compensation aside from the fees outlined in this Agreement. In formulating the financial plan, KAI will consider primarily the financial products offered through or approved by KSI. As a result, equity products recommended by KAI in connection with Client’s financial plan may only consist of financial products that have been approved by KSI. 7. Privacy KAI agrees that all of the personal information furnished by Client pursuant to Section 1 of this Agreement shall be kept in strict confidence and will not be disclosed to any other unrelated person without Client’s prior consent, unless such disclosure is required by law. KAI’s and KSI’s notice of Privacy Policy is attached to this Agreement as Schedule A. 8. Termination This Agreement may be terminated by either party at any time without penalty upon written notice. If the Client terminates this Agreement within five (5) business days of signing, any prepaid fees will be prorated and the unused portion returned to the Client. 9. Miscellaneous This Agreement will be governed by the laws of the state of Florida and applicable federal law. This Agreement is for the benefit of any successor of KAI and will be binding upon Client’s successor and assigns. KAI will not assign this Agreement without Client’s written consent. This Agreement will become effective upon written acceptance by all parties, as evidence by their signatures hereon. This Agreement constitutes the entire argument between the parties and may not be amended except in writing signed by all parties. ____________________________________________________________________________________________________ June 2009 6451 N. Federal Hwy, Ste 1201 | Fort Lauderdale, FL 33308 3 Fax: 954.208.7598

________________________________________________________________________ 10. Arbitration This Agreement contains a pre-dispute arbitration clause. agreement, the parties hereby agree as follows:

By signing and agreeing to this arbitration

A. All parties to this agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed. B. Arbitration awards are generally final and binding; a party’s ability to have a court reverse or modify an arbitration award is very limited. C. The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings. D. The arbitrators do not have to explain the reason(s) for their award. E. The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry. F. The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court. G. The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this agreement. All controversies that may arise between us (including, but not limited to controversies concerning any account, order or transaction, or the continuation, performance, interpretation or breach of this or any other agreement between us, whether entered into or arising before, on or after the date this account is opened) shall be determined by arbitration in accordance with the rules then prevailing of the Financial Industry Regulatory Authority (FINRA). Client(s) understand(s) that judgment upon any arbitration award may be entered in any court of competent jurisdiction. 11. Assignment This Agreement cannot be assigned or transferred in any manner by any party without consent by all parties receiving or rendering services under the Agreement. 12. Disclosure Client(s) signature(s) below acknowledges that Client(s) has/have received and has/have had the opportunity to read the Kovack Advisors Form ADV Part II as required by Rule 204-3 of the Investment Advisors Act of 1940.

____________________________________________________________________________________________________ June 2009 6451 N. Federal Hwy, Ste 1201 | Fort Lauderdale, FL 33308 4 Fax: 954.208.7598

________________________________________________________________________ NOTE: THIS AGREEMENT CONTAINS A PRE-DISPUTE ARBITRATION CLAUSE WHICH IS LOCATED ON PAGE 4 AT SECTION 10. By signing this below, the parties certify that they each agree to the terms of this Agreement. For Corporate, Partnership, Trust, Employee Benefit Plan or Other Entity Client:

For Individual Clients:

________________________________________ (Print Name of Entity)

_____________________________________________ (Print Name)

________________________________________ (Print Name)

_____________________________ Date: ___________ (Signature)

_______________________ Date: ____________ (Signature)

_____________________________________________ (Print Name of Joint Client, if any)

Title: ___________________________________

_____________________________ Date: ___________ (Signature of Joint Client, if any)

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Client Address: _____________________________________________ _____________________________________________ _____________________________________________

________________________________________ (Print Name) _______________________ Date: ____________ (Signature) Title: ____________________________________ Client Address: ________________________________________ ________________________________________ ________________________________________

This section is for Home Office use only. _________________________________________ Investment Advisor Representative Name

_____________________________________________ Kovack Advisors, Inc. Principal Name

___________________________ Date: _________ (Signature)

_____________________________ Date: ___________ (Authorized Signature)

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