MOSAIC ADVISORS LLC

ITEM 1 COVER PAGE MOSAIC ADVISORS SEC File No. 801-99369 ADV Part 2A | Disclosure Brochure 3773 Richmond Ave, Suite 700 Houston, Texas 77046 (713) 980-4100 March 26,2025 This Brochure provides information about the qualifications and business practices of Mosaic Advisors, LLC, also referred to as “Mosaic”, “us”, “we” or “our”. When we use the words “you”, “your”, “family”, “client family”, and “client” we are referring to you as our client or prospective client. We use the term “Associated Person” when referring to our officers, employees, and all individuals providing advice on Mosaic’s behalf. Mosaic is a Registered Investment Adviser (“RIA”) with the United States Securities & Exchange Commission (“SEC”) pursuant to the Investment Advisers Act of 1940 (the “Advisers Act”). The registration of an investment adviser does not imply any certain level of skill or training. The oral and written communications made to you by Mosaic, including the information contained in this Brochure, is intended to provide you with the information required to determine whether to engage Mosaic. The information in this Brochure has not been approved or verified by the SEC or by any state securities authority. Additional information about Mosaic (CRD # 164913) is available on the Securities and Exchange Commission’s (“SEC”) website located at www.adviserinfo.sec.gov. The SEC’s website also provides information about any person registered with, and or required to be registered, as an investment adviser representative of Mosaic. If you have any questions about the contents of this Brochure, please contact Carey Kesner, Chief Compliance Officer, at (713) 980-4100 or carey@mosaicadvisors.com. Our Brochure may be obtained by visiting our website at www.mosaicadvisors.com or requested by contacting Carey Kesner. Page 1 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  ITEM 2 MATERIAL CHANGES Please note that the changes and modifications to this Brochure that are set forth below reflect all the “material changes” made to this Brochure since our last delivery or posting of the Brochure on the SEC’s public disclosure website (IAPD) www.adviserinfo.sec.gov. While not material, changes have been made to enhance disclosures regarding our services in Item 4 and Item 8. We have revised our quarterly retainer information in Item 5. We will provide new client families with a Brochure before or at the time we begin an advisory relationship. We will deliver to our client families, within 120 days of the end of each fiscal year, a free, updated Brochure that either includes or is accompanied by a summary of material changes. Alternatively, we may deliver a summary of material changes that includes an offer to provide a copy of the updated Brochure and information on how our clients may obtain the Brochure. Page 2 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  ITEM 3 TABLE OF CONTENTS TABLE OF CONTENTS Item 1 Cover Page ............................................................................................................................................... 1 Item 2 Material Changes .................................................................................................................................... 2 Item 3 Table of Contents .................................................................................................................................... 3 Item 4 Advisory Business .................................................................................................................................... 5 Overview ......................................................................................................................................................... 5 Ownership ...................................................................................................................................................... 6 Services Offered ............................................................................................................................................. 6 Continuous Planning ................................................................................................................................... 8 Wealth Administration ............................................................................................................................. 11 Portfolio Oversight ................................................................................................................................... 12 Portfolio Management ............................................................................................................................. 13 Family Education ...................................................................................................................................... 14 Education ...................................................................................................................................................... 14 Miscellaneous ............................................................................................................................................... 15 Item 5 Fees & Compensation ........................................................................................................................... 20 Portfolio Management Fees ......................................................................................................................... 21 Discretionary Accounts ............................................................................................................................. 21 Non-Discretionary Accounts ..................................................................................................................... 21 Transaction Costs.......................................................................................................................................... 21 Termination .................................................................................................................................................. 22 Item 6 Performance-Based Fees & Side-By-Side Management ....................................................................... 22 Item 7 Types of Clients ..................................................................................................................................... 22 Item 8 Methods of Analysis, Investment Strategies & Risk of Loss .................................................................. 22 Analysis Methods.......................................................................................................................................... 23 Sources of Information ................................................................................................................................. 23 Investment Strategies ................................................................................................................................... 24 Risk of Loss .................................................................................................................................................... 24 Item 9 Disciplinary Information ........................................................................................................................ 27 Item 10 Other Financial Industry Activities & Affiliations ................................................................................ 27 Page 3 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  Insurance Agency .......................................................................................................................................... 27 Item 11 Code of Ethics, Participation, or Interest in Client Trading ................................................................. 28 General ......................................................................................................................................................... 28 Personal Trading ........................................................................................................................................... 28 Insider Information ....................................................................................................................................... 28 Item 12 Brokerage Practices ............................................................................................................................. 28 Research & Benefits...................................................................................................................................... 29 Directed Brokerage ....................................................................................................................................... 29 Order Aggregation ........................................................................................................................................ 30 Item 13 Review of Accounts ............................................................................................................................. 30 Account Review ............................................................................................................................................ 30 Reports ......................................................................................................................................................... 30 Trade Errors .................................................................................................................................................. 30 Item 14 Client Referrals & Other Compensation .............................................................................................. 30 Item 15 Custody ................................................................................................................................................ 31 Item 16 Investment Discretion ......................................................................................................................... 31 Discretionary Authority ................................................................................................................................ 31 Discretionary Portfolio Management ........................................................................................................... 31 Item 17 Voting Client Securities ....................................................................................................................... 31 Item 18 Financial Information .......................................................................................................................... 32 Item 19 Other Information ............................................................................................................................... 32 Summary Privacy Policy ................................................................................................................................ 32 Business Continuity Plan............................................................................................................................... 32 Page 4 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  ITEM 4 ADVISORY BUSINESS OVERVIEW Mosaic serves approximately 40 entrepreneurial families, primarily first-generation founders. These client families, which consist of individuals with shared financial interests – often spanning multiple generations – typically have significant illiquid holdings, with the majority of their success tied up in their operating companies and real estate. They seek guidance at the intersection of Financial Capital and Family Capital. Financial Capital Family Capital Financial Capital is the “How” that entrepreneurial families rely upon to protect, grow, and transfer their hard work for the people and causes that matter most to them utilizing tax, legal, business, philanthropic, and investment structures. Mosaic functions as a generalist, where we lead where we lead the team of tax, legal, accounting, insurance, banking, valuation, and investment specialists required to analyze, design, implement, and maintain these complicated structures. Family Capital or the “Why”, is the invisible thread weaving generations together, fortifying family values in search of durable family harmony. It consists of the relationships, skills, conversations, agreements, processes, stories, compromises, and decision-making frameworks that entrepreneurial families need to articulate the expectations, opportunities, and responsibilities that accompany significant success. Mosaic plays the role of issue spotter, facilitator, and force multiplier to advisors that specialize in family dynamics, ownership alignment, and communication & conflict resolution. Page 5 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  OWNERSHIP Mosaic Advisors, LLC is a wholly owned subsidiary of Mosaic Wealth Partners, LLC (“MWP”). MWP is owned by Brandon Henry and Carey Kesner. SERVICES OFFERED Mosaic has refined an intuitive, transparent, and comprehensive collection of services to address the ever- changing needs of entrepreneurial families. Financial Capital  Continuous Planning includes Plan Analysis, Plan Design, Plan Implementation  Wealth Administration includes Plan Monitoring & Plan Maintenance  Portfolio Oversight includes Non-Discretionary Portfolio Consulting, Monitoring, & Oversight  Portfolio Management includes Discretionary and Non-Discretionary Portfolio Management Family Capital  Family Education includes Family Education & Meetings Page 6 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  Mosaic engages client families through a linear, phased approach, progressing from Analyze  Design  Implement  Maintain & Monitor. The following provides a reasonable estimate of the average time required to complete each phase of a new engagement. Phase Description Duration Analyze ~3 – 9 Months Phase 1 Design ~1 – 3 Months Phase 2 Implement ~3 – 18 Months Phase 3 Maintain & Monitor Ongoing Phase 4 Analyze Maintain & Monitor Design Implement It's important to note that there is no obligation for client families to continue through each phase. Each client family has the flexibility to decide whether to proceed to the next phase based on their satisfaction with the services provided and the value they perceive. Client families may also terminate the engagement at any point, for any reason, ensuring that they retain control over the extent and direction of their involvement with Mosaic. The specific scope of each engagement is tailored according to the terms of the engagement letter and is influenced by the unique objectives and priorities of the client family. This bespoke approach ensures that our services are closely aligned with the family’s specific needs and goals. Additionally, Mosaic emphasizes the importance of addressing planning issues continually. Mosaic’s retainer is structured to continue regardless of the extent to which the client family chooses to address planning issues with us. Page 7 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  CONTINUOUS PLANNING PHASE 1 | ANALYZE Gone are the days of navigating with a paper map; modern GPS can guide us anywhere on the planet, requiring just two crucial inputs: “where you are” and “where you are going”. Without both pieces of information, this groundbreaking technology fails is rendered useless. Entrepreneurial families often struggle to effectively navigate the intersection of legal, tax, business, finance, investments, and philanthropy, further complicated by evolving family dynamics. Each family and their business possess unique circumstances that make generic solutions ineffective, even if on the surface, situations seem similar. What benefits one family may not suit another, highlighting the need for a customized approach. While many families and their professional advisors have a clear vision of where they want to go, it is crucial to recognize a commonly overlooked aspect: they often lack a deep understanding of the inner workings and real-life implications of their plans. Without a precise understanding of their starting point, it is difficult for them to confidently chart a path forward. However, once families gain a clear insight into how their current plans actually function, they are almost invariably dissatisfied with the status quo. During the Analyze phase, we work closely with client families and their professional advisory teams to collect important tax, legal, and financial documents that impact their family and business lives—often involving hundreds of individual documents and hundreds of man hours. We then analyze and synthesize this mountain of data into actionable workbooks filled with pictures, graphs, charts, and tables. These detailed presentations not only depict the family's current situation but also forecast potential outcomes of significant life events. The result is an in-depth understanding of how various aspects of their financial and business lives interact and influence each other. Armed with this knowledge, client families are empowered to prioritize critical issues as they develop a tailored roadmap that aligns with their long-term objectives. Through the collective years of experience Mosaic has working with entrepreneurial families and their advisors, management teams, and the family offices that support them, we have reached a critical conclusion: to set realistic priorities and identify actionable strategies, an entrepreneurial family must first answer the deceptively simple, yet profound question, “Where am I now?” The Analyze phase was engineered to answer that one deceptively simple yet profound question. Page 8 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  PHASE 2 | DESIGN When undertaking a significant home renovation project, families assemble a team of architects, designers, and engineers who are expected to leverage their experience to anticipate potential problems minimize the impact of unavoidable challenges. These specialists collaborate to navigate numerous interconnected decisions, ranging from seemingly mundane choices like paint colors to critical structural decisions such as the placement of load-bearing walls. While not every decision is easily visible to the untrained eye, meticulous attention to the details ensures that each decision aligns with and supports the family’s overarching vision. A similar level of collaboration, diligence, and strategic foresight is required during Phase 2. Mosaic begins with an in-depth analysis of potential planning strategies, rigorously stress-testing them in various combinations to assess their technical accuracy and real-life practical efficacy. Working closely with a team of professional advisors, Mosaic can substantiate the viability of these recommendations and help to ensure their seamless integration into the client family's broader plan. As part of the design process, Mosaic will attempt to identify and curate the most relevant options, explain the pros and cons of each, and consider the knock-on effects of implementing each into an inherently complex system. By discussing the pros and cons of these strategies and providing clear examples from similar approaches undertaken by other entrepreneurial families on similar journeys, Mosaic enables client families to "try-on" different techniques while learning from both the struggles and successes of their contemporaries. Mosaic’s flat retainer structure helps ensure that client families know we don’t have an ulterior motive. If we advocate for a specific idea, it is because we believe in the strategy's effectiveness—not because it benefits us. Conversely, if we are critical of an idea, it is not due to competition with another professional but because we think we have a comprehensive view and we may have seen similar strategies fail in other scenarios. Mosaic’s design process is crafted to yield comprehensive, not piecemeal, results. We design strategic, comprehensive, integrated, forward-looking plans tailored to the unique priorities of each client family. The plans we develop must be rigid enough to withstand potential pressures from creditors and the IRS for decades, yet flexible enough to accommodate inevitable changes such as shifts in tax laws, the business environment, and family dynamics. Page 9 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  PHASE 3 | IMPLEMENT Even with the best blueprints money can buy, most people on their own are not able to transform a 2D image into a 3D structure that is delivered both on time and on budget. For the few who can, it necessitates dedicating substantial personal time and resources. This is why most people choose a General Contractor to oversee the long and complicated process. Mosaic acts as a General Contractor—not for electricians, plumbers, or carpenters, but for key financial professionals. We provide information, direction, and accountability to our client families’ CPAs, attorneys, investment advisors, insurance agents, bankers, and consultants. Together, we design, implement, and maintain structures that are designed to help entrepreneurial families grow, protect, and transfer their wealth to the people and causes that matter most. Mosaic’s role extends beyond simple consultancy. Client families require more than a fancy slide deck full of theoretical ideas, introductions to professionals, or someone calling plays from the sidelines. They want the people, experience, and processes required to dive deeply with client families and their advisors to ensure the effective implementation of sophisticated strategies. As a project management organization, sophisticated planning rests on a foundation of extreme focus, comprehensive experience, and specialized expertise. Once a client family has agreed upon an overall direction during the Design phase, the critically important process of implementation begins. There are no shortcuts in this phase. Mosaic takes on the essential administrative tasks—what we like to call "eating the administrative broccoli"—to make sure everything is done properly. This meticulous attention to detail seeks to provide families and their professional advisors with the confidence and freedom to pursue sophisticated planning. Mosaic's commitment to execution underscores our understanding that a simple solution on paper may actually require dozens of independent steps and touchpoints in practice. Mosaic is fully empowered to accomplish these objectives on behalf of our client families, checking in when decisions are needed but not overwhelming them with minutiae. Page 10 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  WEALTH ADMINISTRATION PHASE 4 | MONITOR & MAINTAIN MONITOR If a plane drifts off course by just one degree on the 4,800-mile flight from Houston to London, instead of landing in England, they wind up in Norway. To prevent this, airlines utilize sophisticated dashboards along with GPS to make constant adjustments to stay on the correct path. Similarly, entrepreneurial families’ plans are living, breathing entities that require constant attention and adjustment. Even the most sophisticated plans, if merely stored away in a desk drawer, will decay over time. This is particularly true for entrepreneurial families who must continually wrestle with evolving tax laws, shifting family dynamics, and the changing landscape of business operations. The lack of proactive monitoring is often why family plans fail or get off course. To help prevent deviation from their planned course, Mosaic developed a comprehensive monitoring process tailored to the specific needs of entrepreneurial families. This process is critical in ensuring that plans not only remain current but also effectively adapt to changing circumstances. Central to our monitoring process are a series of Milestone Reviews, which provide Mosaic, the client family, and their professional team with a “top of the mountain” view of their financial, legal, business, investment, and insurance landscape. By holding several Milestone Reviews each year, we help ensure that the strategic direction of the client family's plan stays aligned with their long-term priorities. The reviews focus on critical areas such as Current Financial Condition & Cash Flow Projections, Asset Protection & Risk Management, Income Tax Reviews, Estate Plan Reviews, Family Meetings, and Strategic Asset Allocation & Investment Policy Statements. These systematic reviews are designed not merely to maintain the status quo but to recalibrate the family's financial trajectory as needed. Whether through minor adjustments or significant overhauls, our goal is to ensure that the family’s plan remains effective and responsive to their evolving needs and circumstances. MAINTAIN We all know that trading in soda and candy for fruits and veggies will help to stave off health issues down the road. This is the same straightforward advice often received during an annual physical - eat less and move more. While the advice is simple, the execution is far from easy. It's much more fun to postpone for tomorrow what you don’t absolutely have to do today, especially if it isn’t currently on fire. Maintenance is a crucial, albeit frequently overlooked, aspect of planning for entrepreneurial families. We recognize that for a client family to be successful, they must manage their plan with the same focus, rigor, and dedication required to run a thriving business. Maintaining comprehensive tax, legal, business, and financial plans might not be glamorous, but they are essential. These plans serve as the linchpins that prevent even the most well thought out strategies from deteriorating over time. Mosaic administers a structured, proactive approach to the project management required for ongoing maintenance of client family plans. This approach includes the implementation of an annual operating calendar filled with dozens of checkpoints and critical dates, supported by quarterly project trackers that Page 11 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  review past activities and plan for upcoming events. This structured oversight helps ensure that tasks and responsibilities are managed timely and effectively. By enabling continual review and proactive adjustments, Mosaic's comprehensive maintenance strategy helps ensure that client families can have peace of mind, knowing their plan is in order. This allows them to focus on other important aspects of life and business, confident that their plan is receiving the necessary attention to remain strong, relevant, and effective over time. PORTFOLIO OVERSIGHT Most entrepreneurial families can’t accurately describe fundamental concepts such as what they own, why they own it, where they own it, how much it costs, how it is performing, or how it complements their other holdings. Mosaic works closely with client families and their third-party investment advisors to design a comprehensive strategy that integrates all existing holdings, ensuring a more holistic approach to global asset allocation and asset location which considers factors such as liquidity needs, cash flow, tax location, risk tolerance, and risk capacity. This collaboration enables us to increase economies of scale, identify redundancy, reduce costs, and taxes which often translates into increasing transparency, liquidity, and expected returns. To provide a thorough and comprehensive view of their investments, Mosaic provides consolidated portfolio reporting using a total balance sheet approach that blends liquid and illiquid holdings into a single, comprehensive picture regardless of the type of investments and where they are being managed. With consolidated reporting, Mosaic aims to deliver a clear picture of the entire portfolio, focusing on critical inputs such as performance, allocation, fees, income taxability, estate taxability, unfunded commitments, cash flow, types of income, liquidity, etc. This comprehensive approach helps ensure that both liquid and illiquid holdings are thoroughly considered, providing a unified and complete overview of the family's investment landscape. By combining a holistic perspective with a deep understanding of each client family’s evolving financial landscape, entity structures and the tax code, we can more effectively optimize the allocation and physical location of their holdings. This optimized strategy not only addresses current financial dynamics, but also helps anticipate future needs and potential shifts, forming the bedrock of a Strategic Asset Allocation and, where applicable, an Investment Policy Statement (IPS). A Strategic Asset Allocation and IPS serve as a critical framework for guiding the family’s investment decisions. Tailored to their specific goals, risk tolerance, and time horizons, it helps keep investment decisions aligned with their broader financial objectives and values. This framework needs to be dynamic and evolves with changing family circumstances and market conditions, ensuring continued relevance and effectiveness in achieving their financial goals. Any investments not being managed by Mosaic are referred to as “Excluded Assets.” It is important to note that client families and their advisors, who hold trading authority, are solely responsible for the investment performance of the Excluded Assets. Mosaic's role with these assets is limited to reporting unless a specific written agreement is made to extend our management services. If Mosaic makes recommendations regarding the Excluded Assets, client families are under no obligation to follow these suggestions. Should there be a desire to expand our services to include the management of Excluded Assets, this arrangement can be Page 12 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  formalized through an Investment Advisory Agreement. Furthermore, Mosaic assists with the diligence of investment opportunities, including the assisting with the completion of subscription agreements for illiquid investments and facilitation of capital calls. PORTFOLIO MANAGEMENT Mosaic’s portfolio management service is designed to meet the diverse needs of entrepreneurial families, along with their trusts, estates, closely held business entities, and charitable organizations. Our services are offered on both a discretionary and non-discretionary basis, allowing client families to exercise varying levels of control over their investment decisions. Our continuous management of portfolio assets helps ensure that both asset allocation and asset location are balanced across liquid investments, such as cash, bonds, and stocks, as well as illiquid investments, including private equity, venture capital, private credit, hedge funds, real assets, and real estate. Each portfolio is designed to align with the unique investment objectives of each client family, which may include considerations of risk tolerance, risk capacity, tax implications, cash flow needs, time horizon, and liquidity requirements. Client families have the ability to impose specific restrictions on investing in certain securities or types of securities based on their individual preferences. In managing liquid portfolios, Mosaic frequently utilizes individually managed stocks and bonds through Separately Managed Accounts (SMAs), in addition to Exchange-Traded Funds (ETFs) within Model Portfolios. For illiquid investments, Mosaic employs a range of structures such as including Limited Partnerships (LPs), Limited Liability Companies (LLCs), , Evergreen Funds, Draw Down Funds, and Closed-End Funds. Page 13 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  FAMILY EDUCATION Mosaic builds customized learning plans for entrepreneurial families depending on each member’s interest, ability, ambition, and aptitude. For some, we will need to begin with the fundamentals of financial literacy. For others, we can begin with advanced business, financial, tax and legal strategies. Most “plans” focus exclusively on technical items such as tax savings or investment returns. This unintentionally neglects the deliberate work, open communication, and consistent effort required to avoid negative outcomes like family in-fighting, entitled children, or squandered fortunes. In addition to the “hard skills”, we facilitate regular family meetings designed to tackle the big philosophical questions while creating shared understanding and alignment among the family. By attacking both the “How” and the “Why”, we hope to increase durable family harmony and the likelihood that family members will thrive in the future. EDUCATION All Mosaic personnel are expected to have education and business backgrounds that enable them to perform their respective responsibilities effectively. In assigning responsibilities, we consider academic background, industry training, licenses, designations, and certifications. Relevant work experience in a related field, such as investments, commodities, insurance, financial planning, banking, or accounting, tax, law, is also considered. No formal, specific standards have been set, but appropriate education and experience are required. See ADV Form Part 2B for additional information. Investment Advisory Services (“IA”) Mosaic provides investment advisory and consulting services on a discretionary or non-discretionary basis to individuals, trusts, estates, closely held business entities, and charitable organizations. Investment advice and portfolio management services are provided on a continuous basis including the appropriate allocation of managed assets among cash, stocks, bonds, and private investments. The selection of specific investments will provide proper diversification designed to help to meet the client’s stated investment objectives, although you may impose restrictions on Mosaic with respect to investing in certain securities or types and classes of securities. These portfolio management services are provided to the following: • Individuals & Families • Estates and Trusts • Endowments and Foundations • Closely held business entities Before engaging Mosaic to provide investment advisory services, clients are generally required to enter into an Investment Advisory Agreement with Mosaic setting forth the terms and conditions of the engagement (including termination), describing the scope of the services to be provided, and the fee that is due from the client. The Client will generally pay just one flat fee for our advisory services. To commence the investment advisory process, Mosaic will ascertain each client’s investment objective(s) and then allocate the client’s Page 14 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  assets consistent with the client’s designated investment objective(s). Once allocated, Mosaic provides ongoing supervision of the account(s). Please Note: As noted above, Mosaic believes that it is important for the client to address planning issues on an ongoing basis. Mosaic’s advisory fee, as set forth at Item 5 below, will remain the same regardless of whether the client determines to address planning issues with Mosaic. MISCELLANEOUS Limitations of Non-Investment Consulting: If requested by a client family, Mosaic will provide non-investment consulting services such as income tax planning, estate tax planning, asset protection planning, succession planning, family governance planning, philanthropic planning, etc. on a flat retainer basis. Accordingly, Mosaic may recommend the services of professional advisors (such as attorneys, CPAs, investment advisors, insurance agents, accountants / bookkeepers, bankers, etc.). The client family is under no obligation to engage the services of any recommended professional. The client family retains absolute discretion over all implementation decisions and is free to accept or reject any recommendation from Mosaic. If the client family engages any recommended unaffiliated professional, and a dispute arises thereafter relative to the engagement, the client family agrees to seek recourse exclusively from and against the engaged professional. Mosaic does not serve as an Attorney or CPA. Accordingly, under no circumstances does Mosaic draft legal documents or prepare tax returns. To the extent requested by a client, we may recommend the services of other professionals for non-investment implementation purpose (i.e., attorneys, accountants, insurance, etc.). The client is not under any obligation to engage any such professional(s). The client retains absolute discretion over all such implementation decisions and is free to accept or reject any recommendation from Mosaic and/or its representatives. If the client engages any professional (i.e., attorney, accountant, insurance agent, etc.), recommended or otherwise, and a dispute arises thereafter relative to such engagement, the engaged professional shall remain exclusively responsible for resolving any such dispute with the client. No portion of Mosaic’s service should be construed as legal or tax services. At all times, the engaged licensed professionals (such as attorney, CPA, insurance agent, etc.), and not Mosaic, shall be responsible for the quality and competence of the services they provide. Retirement Rollovers: When you leave an employer, you typically have four options regarding an existing retirement plan (and may engage in a combination of these options): (i) leave the money in the former employer’s plan, if permitted, (ii) roll over the assets to the new employer’s plan, if one is available and rollovers are permitted, (iii) roll over to an Individual Retirement Account (“IRA”), or (iv) cash out the account value (which could, depending upon the client’s age, result in adverse tax consequences). If Mosaic recommends that a client family roll over their retirement plan assets into an account to be managed by Mosaic, such a recommendation creates a conflict of interest if Mosaic will earn new (or increase its current) compensation because of the rollover. When acting in such capacity, Mosaic serves as a fiduciary under the Employee Retirement Income Security Act (ERISA), or the Internal Revenue Code, as applicable, which are laws governing retirement accounts. No client family is under any obligation to rollover retirement plan assets to an account managed by Mosaic. Mosaic’s Chief Compliance Officer, Carey Kesner, remains available to address any questions that a client family or prospective client family may have regarding the potential for conflict of interest presented by such rollover recommendation. Custodian Charges-Additional Fees. As discussed below at Item 12 below, when requested to recommend a Page 15 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  broker-dealer/custodian for client accounts, Registrant generally recommends that Schwab serve as the broker-dealer/custodian for client investment management assets. The specific broker-dealer/custodian recommended could depend upon the scope and nature of the services required by the client. Broker-dealers such as Schwab charge brokerage commissions, transaction, and/or other type fees for effecting certain types of securities transactions (i.e., including transaction fees for certain mutual funds, dealer spreads, and mark- ups and mark-downs charged for fixed income transactions, etc.). The types of securities for which transaction fees, commissions, and/or other type fees (as well as the amount of those fees) shall differ depending upon the broker-dealer/custodian. While certain custodians, including Schwab, generally (with exceptions) do not currently charge fees on individual equity transactions (including ETFs), others do. Please Note: there can be no assurance that Schwab will not change its transaction fee pricing in the future. Please Also Note: Schwab may also assess fees to client families who elect to receive trade confirmations and / or account statements by regular mail rather than electronically. These fees/charges are in addition to Mosaic’s fee described in Item 5 below. Mosaic does not receive any portion of these fees/charges. Other Assets. A client may: • Hold securities that were purchased at the request of the client or acquired prior to the client’s engagement of Mosaic. Generally, with potential exceptions, Mosaic does not/would not recommend nor follow such securities, and absent mitigating tax consequences or client direction to the contrary, would prefer to liquidate such securities. Please Note: If/when liquidated, it should not be assumed that the replacement securities purchased by Mosaic will outperform the liquidated positions. To the contrary, different types of investments involve varying degrees of risk, and there can be no assurance that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by the Registrant) will be profitable or equal any specific performance level(s)In addition, there may be other securities and/or accounts owned by the client for which Mosaic does not maintain custodian access and/or trading authority; and, • Hold other securities and/or own accounts for which Mosaic does not maintain custodian access and/or trading authority. • Addepar. In the event that Mosaic provides the client with access to an unaffiliated vendor’s website such as Addepar, and the site provides access to information and/or concepts, including financial planning, the client, should not, in any manner whatsoever, infer that such access is a substitute for services provided by Mosaic. Rather, if the client utilizes any such content, the client does so separate and independent of Mosaic. Sweep Cash: Certain custodians can require that cash proceeds from account transactions or new deposits, be swept to and/or initially maintained in a specific custodian designated sweep account. The yield on the sweep account will generally be lower than those available for other money market accounts. When this occurs, to help mitigate the corresponding yield dispersion, Mosaic shall (usually within 30 days thereafter) generally (with exceptions) purchase a higher yielding money market fund (or other type security) available on the custodian’s platform, unless Mosaic reasonably anticipates that it will utilize the cash proceeds during the subsequent 30-day period to purchase additional investments for the client’s account. Exceptions and/or modifications can and will occur with respect to all or a portion of the cash balances for various reasons, including, but not limited to the amount of dispersion between the sweep account and a money market fund, the size of the cash balance, an indication from the client of an imminent need for such cash, or the client has a demonstrated history of writing checks from the account. Page 16 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  Please Note: The above does not apply to the cash component maintained within Mosaic’s managed portfolios (the cash balances for which shall generally remain in the custodian designated sweep cash), an indication from the client family of a need for access to such cash, assets allocated to an unaffiliated investment manager, and cash balances maintained for fee billing purposes. Please Also Note: The client family shall remain exclusively responsible for yield dispersion/cash balance decisions and corresponding transactions for cash balances maintained in self-directed accounts. Cash Allocation: Mosaic treats cash as an asset class. As such, unless determined to the contrary by Mosaic, all cash positions (money markets, etc.) may continue to be included as part of assets under management for purposes of calculating Mosaic’s advisory fee. At any specific point in time, depending upon perceived or (there being no guarantee that such anticipated market anticipated market conditions/events conditions/events will occur), Mosaic may maintain cash positions for defensive purposes. In addition, while assets are maintained in cash, such amounts could miss market advances. Depending upon current yields, at any point in time, Mosaic’s fee could exceed the interest paid by the client family’s money market fund. ANY QUESTIONS: Mosaic’s Chief Compliance Officer, Carey Kesner, remains available to address any questions that a client family or prospective may have regarding the above fee billing practice. Use of Mutual & Exchange Traded Funds: Most mutual funds and exchange traded funds are available directly to the public. Thus, a prospective client family can obtain many of the funds that may be used by Mosaic independent of engaging Mosaic. However, if a prospective client family determines to do so, they will not receive Mosaic’s initial and ongoing advisory services. In addition to Mosaic’s fee described below, and transaction and/or custodial fees discussed above, client families will also incur, relative to all mutual fund and exchange traded fund purchases, charges imposed at the fund level (e.g. management fees and other fund expenses). Mosaic utilizes mutual funds and exchange traded funds issued by BlackRock, Vanguard, and Dimensional Fund Advisors (“DFA”). DFA mutual funds are generally only available through RIAs approved by DFA. Thus, if the client family was to terminate Mosaic’s services, and transition to another adviser who has not been approved by DFA to utilize DFA funds, restrictions regarding additional purchases of, or reallocation among other DFA funds, may apply. Margin & Securities Based Loans: Upon client family request, Mosaic may recommend that a client family establish a securities-based loan (“SBL”) through the client family’s bank, brokerage, or custodian (an “SBL Lender”). The terms and conditions of each SBL are contained in a separate agreement between the client family and the SBL Lender, which terms and conditions may vary from client family to client family. SBL risks include the potential obligation to post collateral or repay the SBL if the SBL Lender determines that the value of collateralized securities is no longer sufficient to support the value of the SBL; the risk that the SBL Lender may liquidate the client family’s securities to satisfy its demand for additional collateral or repayment / the risk that the SBL Lender may terminate the SBL at any time. Before agreeing to participate in an SBL program, client families should carefully review the applicable SBL agreement, and all risk disclosures provided by the SBL Lender. If Mosaic recommends that a client family utilize an SBL instead of selling securities that Mosaic manages for an AUM fee to meet liquidity needs of the client family, the recommendation may present an ongoing conflict of interest because selling those securities (instead of leveraging those securities to access an SBL) would reduce the amount of assets to which Mosaic’s fee percentage is applied, and thereby reduce the amount of investment advisory fees collected by Mosaic. Likewise, the same ongoing conflict of interest is present if a client family determines to apply for an SBL on their own initiative. These ongoing conflicts of interest would persist as long as Mosaic has an economic disincentive to recommend that the client family Page 17 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  terminate the use of SBLs. Client families are therefore reminded that they are not under any obligation to employ the use of SBLs, and are solely responsible for determining when to use, reduce, and terminate the use of SBLs. Although Mosaic seeks to disclose all conflicts of interest related to its recommended use of SBLs and related business practices, there may be other conflicts of interest that are not identified above. Client families are therefore reminded to carefully review the applicable SBL agreement and all risk disclosures provided by the SBL Lender as applicable, and contact Mosaic’s Chief Compliance Officer, Carey Kesner, with any questions regarding the use of SBLs. Cybersecurity Risk: The information technology systems and networks that Mosaic and its third-party service providers use to provide services to Registrant’s clients employ various controls that are designed to prevent cybersecurity incidents stemming from intentional or unintentional actions that could cause significant interruptions in Registrant’s operations and/or result in the unauthorized acquisition or use of clients’ confidential or non-public personal information. In accordance with Regulation S-P, Mosaic is committed to protecting the privacy and security of its clients' non-public personal information by implementing appropriate administrative, technical, and physical safeguards. Mosaic has established processes to mitigate the risks of cybersecurity incidents, including the requirement to restrict access to such sensitive data and to monitor its systems for potential breaches. Clients and Mosaic are nonetheless subject to the risk of cybersecurity incidents that could ultimately cause them to incur financial losses and/or other adverse consequences. Although Mosaic has established processes to reduce the risk of cybersecurity incidents, there is no guarantee that these efforts will always be successful, especially considering that Mosaic does not control the cybersecurity measures and policies employed by third-party service providers, issuers of securities, broker- dealers, qualified custodians, governmental and other regulatory authorities, exchanges, and other financial market operators and providers. In compliance with Regulation S-P, Mosaic will notify clients in the event of a data breach involving their non-public personal information as required by applicable state and federal laws. Client Retirement Plan Assets: If requested to do so, Mosaic can provide investment advisory services relative to 401(k) plan assets maintained by the client family in conjunction with the retirement plan established by the client family’s employer. In such event, Mosaic shall recommend that the client family allocate the retirement account assets among the investment options available on the 401(k) platform. Mosaic’s ability shall be limited to the allocation of the assets among the investment alternatives available through the plan. Mosaic will not receive any communications from the plan sponsor or custodian, and it shall remain the client family’s exclusive obligation to notify Mosaic of any changes in investment alternatives, restrictions, etc. pertaining to the retirement account. Portfolio Activity or Inactivity: Mosaic has a fiduciary duty to provide services consistent with the client family’s best interest. Mosaic will review client family portfolios on an ongoing basis to determine if any changes are necessary based upon various factors, which may include but is not limited to investment performance, fund manager tenure, style drift, account additions/withdrawals, market conditions and changes in the client family’s investment objective. There may be periods of time, which may be substantial, when Mosaic determines that changes to a client family’s portfolio are not necessary. Notwithstanding, Mosaic may continue to charge fees, as specified in Item 5 below, on the value of the client family’s account during periods of account inactivity. Of course, as indicated below, there can be no assurance that investment decisions made by Mosaic will be profitable or equal any specific performance level(s). Non-Discretionary Service Limitations: Client families that engage Mosaic on a non-discretionary investment advisory basis must be willing to accept that Mosaic cannot affect any account transactions without obtaining prior consent to any such transaction(s) from the client family. Thus, if Mosaic would like to make a transaction for a client family’s account, and client family is unavailable, Mosaic will be unable to affect the account Page 18 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  transaction (as it would for its discretionary client families) without first obtaining the client family’s consent. Socially Responsible Investing Limitations: Socially Responsible Investing involves the incorporation of Environmental, Social, and / or Governance (“ESG”) considerations into the investment due diligence process. ESG investing incorporates a set of criteria / factors used in evaluating potential investments: Environmental (i.e., considers how a company safeguards the environment); Social (i.e., the way a company manages relationships with its employees, customers, and the communities in which it operates); and Governance (i.e., company management considerations). The number of companies that meet an acceptable ESG mandate can be limited when compared to those that do not and could underperform broad market indices. Investors must accept these limitations, including the potential for underperformance. Correspondingly, the number of ESG mutual funds and exchange-traded funds are limited when compared to those that do not maintain such a mandate. As with any type of investment (including any investment and/or investment strategies recommended and/or undertaken by Mosaic), there can be no assurance that investment in ESG securities or funds will be profitable or prove successful. Mosaic does not maintain or advocate an ESG investment strategy but will seek to employ ESG if directed by a client family to do so. If implemented, Mosaic shall rely upon the assessments undertaken by the unaffiliated mutual fund, exchange traded fund or separate account portfolio manager to determine that the funds or portfolio’s underlying company securities meet a socially responsible mandate. Use of Independent Investment Managers: Mosaic may allocate (and / or recommend that the client family allocate) a portion of their liquid investment assets among unaffiliated independent investment managers (“Independent Managers”) including but not limited to BlackRock, Aperio, a wholly owned subsidiary of BlackRock, and SpiderRock, a wholly owned subsidiary of BlackRock, in accordance with the client family’s designated investment objectives. In such situations, the Independent Manager shall have day-to-day responsibility for the active discretionary management of the allocated assets. Mosaic shall continue to render investment supervisory services to the client family relative to the ongoing monitoring and review of account performance, asset allocation and client family investment objectives. Factors which Mosaic shall consider in recommending Independent Managers include the client family’s designated investment objective(s), management style, performance, reputation, financial strength, reporting, pricing, and research. Client Obligations: Mosaic will not be required to verify any information received from the client family or from the client family’s other professionals and is expressly authorized to rely on the information in its possession. Client families are responsible for promptly notifying Mosaic if there is ever any change in their financial situation or investment objectives so that Mosaic can review, and if necessary, revise its previous recommendations or services. Investment Risk: Different types of investments involve varying degrees of risk, and it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Mosaic) will be profitable or equal any specific performance levels. Disclosure Statement: A copy of Mosaic’s written Brochure as set forth on Part 2A, Part 2B and Form CRS of Form ADV shall be provided to each client family prior to, or contemporaneously with, the execution of the applicable Engagement Letter. Mosaic shall provide investment advisory services specific to the needs of each client family. Prior to providing investment advisory services, Mosaic will ascertain each client family’s investment objective(s). Thereafter, Mosaic shall allocate and/or recommend that the client family allocate investment assets consistent with the Page 19 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  designated investment objective(s). The client family may, at any time, impose reasonable restrictions, in writing, on Mosaic’s services. Client Assets Mosaic Manages: As of December 31st, 2024, Mosaic managed $499,449,089. This total only includes passive liquid holdings such cash, bonds, and stocks on which Mosaic provides ongoing and continuous management. It does not include other client assets that Mosaic advises on including illiquid passive holdings such as private equity, private credit, venture capital, real assets, real estate and other illiquid active assets such as closely-held operating companies and real estate. Of the currently reported managed assets, this includes Discretionary Assets Under Management (“AUM”) of $490,956,683 and Non-Discretionary AUM of $8,492,406. ITEM 5 FEES & COMPENSATION FLAT FEE RETAINER COMPENSATION Mosaic operates on flat fee retainer compensation model, also referred to as a flat fee structure, for each new engagement. We use the term flat retainer because it better reflects the nature of our engagements— providing ongoing, comprehensive advice rather than transaction-based services. This structure is designed to reflect the scale, scope, and complexity of each client family's circumstances, holdings, and priorities. Importantly, our flat retainer model is agnostic regarding a client family’s net worth, insurability, and investable assets, focusing solely on the services provided. Our retainers are typically payable quarterly in advance upon our presentation of an invoice to the client and are based on the terms outlined in an Engagement Letter presented at the onset of our relationship. Retainers are set at our discretion and may vary, even among families with similar makeups, objectives, and priorities, reflecting the bespoke nature of our services and the tailored approach we take with each client. Mosaic’s engagements are intended to be comprehensive, meaning we do not charge separate fees for combining different services. This approach simplifies the financial arrangement between Mosaic and our client families, allowing for transparency and predictability in billing. For the first 1–4 quarters of a new engagement, the flat retainer may be higher to reflect the increased scope and complexity of the initial work. As the engagement progresses, retainers may be reduced to align with the ongoing level of involvement. For example, initial retainers typically begin at $62,500 per quarter and may then adjust to $50,000 per quarter, with an annual Cost-of-Living Adjustment (COLA) ranging from 3.0% to 10.0%. The specific amount of the COLA increase will be set forth in the agreement executed by the client. Mosaic’s fee does not include the flat retainer for independent professional advisors such as legal, tax, valuation, or outside portfolio management services that may be necessary to fully implement the proposed plan. Such fees are separate from Mosaic’s engagement and are payable directly to each respective professional advisor. Mosaic does not receive any portion of these fees/charges. Licensed tax, legal, and valuation advisors, required for the ultimate implementation of client strategies, bill their fees independently of Mosaic. This distinction ensures that client families are aware of and can plan for all costs associated with managing their success. Page 20 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  PORTFOLIO MANAGEMENT FEES Mosaic predominantly operates under a flat retainer model for client families, reflecting our strong preference to align our interests directly with those of our clients. However, a handful of client families, or their friends and relatives, opt for a fee structure based on a percentage of the household portfolio's value. For context, less than 5% of Mosaic’s total fees come from the Assets Under Management (AUM) fee structure. The tiered AUM fees range from 0.20% to 1.00%, generally decreasing as the value of the household portfolio increases. The fee is payable quarterly, either in arrears or in advance. For accounts billed in arrears, the fee will be a percentage of the average daily market value of all assets in the account during the respective billing period. With respect to accounts that are billed quarterly in advance, the fee will be based upon a percentage of the value of all assets in the Account on the last business day of the previous quarter. In any partial calendar quarter or month, the fee will be prorated based on the number of days that the account was open during the respective period. We will also adjust our fee in a pro rata fashion for any additions to, or withdrawals from managed accounts. Fees are negotiable at our discretion, which can result in different fees being charged for accounts similar in makeup and objectives. In making a final decision on the fee negotiated and the billing platform utilized, several factors are taken into consideration, including other accounts related to, or affiliated with you, the securities held in the investment portfolio, investment objectives, the total AUM on an aggregate basis, and other factors that are deemed at the time to be relevant. Mosaic, in its sole discretion, may adjust its advisory fee based upon certain criteria (i.e. anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be managed, related accounts, account composition, competition, negotiations with client family, etc.). Please Note: As a result, similarly situated client families could pay substantially different fees. In addition, similar advisory services may be available from other advisors for similar or lower fees. Client families may elect to have Mosaic’s retainer deducted from their custodial account. Both Mosaic’s Agreement and the custodial agreement may authorize the custodian to debit the account for Mosaic’s fee and to directly remit that fee to Mosaic in compliance with regulatory procedures. If Mosaic invoices the client family directly, payment is due upon receipt of the invoice. Mosaic does not participate in a wrap fee program. DISCRETIONARY ACCOUNTS Mosaic will allocate client family assets consistent with the client family’s designated investment objective. However, Mosaic always seeks to make recommendations in the client family’s best interests. NON-DISCRETIONARY ACCOUNTS Mosaic does not charge a fee for non-discretionary accounts. TRANSACTION COSTS Client families may incur certain charges imposed by custodians, brokers, third party investment managers and other third parties such as fees charged by managers, brokerage commissions, transaction fees, other related costs and expenses, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. Page 21 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  SMAs, mutual funds and exchange traded funds also charge internal management fees, which are disclosed in a fund’s prospectus and are in addition to the fees charged by Mosaic. See Item 12 - Brokerage Practices and Item 14 - Referral Arrangements and Other Compensation for a description of additional compensation received indirectly by people associated with Mosaic. TERMINATION The relationship between Mosaic and client family may be terminated at any time by either party upon written notice. Upon termination, Mosaic will determine, in good faith, an amount equal to the unearned fee, if any, and shall promptly refund such amount to you. “Unearned fee” means the portion of any fees that we determine are attributable to services that had not been performed by us prior to receipt of notice of termination from you. In the event of termination of an investment management relationship that bills in advance, Client family will be entitled to a prorated refund of any pre-paid advisory fee based on the number of days remaining in the quarter after the termination date. ITEM 6 PERFORMANCE-BASED FEES & SIDE-BY-SIDE MANAGEMENT Mosaic does not charge any performance-based fees (fees based on a share of capital gains on or capital appreciation of the assets of a client family) nor do we engage in side-by-side management. ITEM 7 TYPES OF CLIENTS Generally, Mosaic serves the following types of clients:  Ultra-High Net Worth Individuals  Trusts  Ultra-High Net Worth Families  Estates  Family Offices  Foundations ITEM 8 METHODS OF ANALYSIS, INVESTMENT STRATEGIES & RISK OF LOSS Investing in securities involves the risk of loss that client families should be prepared to bear. Mosaic measures the objectives, priorities, risk tolerance, risk capacity, and time horizon of each client family through an interview process and various questionnaires to determine investment strategies that are best suited for the client family. After Mosaic evaluates the client family’s objective and priorities, we can design portfolio management programs to assist the client family to achieve their goals. Page 22 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  ANALYSIS METHODS Security analysis methods utilized by Mosaic may include the following: Fundamental Fundamental analysis maintains that markets may misprice a security in the short run, but that the "correct" price will eventually be reached by the market. The fundamental analysis of a business involves analyzing a business’s financial statements and health, management and competitive advantages, and competitors and markets. Technical Technical analysis maintains that all information is already reflected in the stock price. Technical analysis is a discipline for forecasting the direction of prices through the study of past market data, primarily price and volume. Generally, technical analysis employs models and trading rules based on price and volume transformations, such as the relative strength index, moving averages, regressions, inter-market and intra-market price correlations, business cycles, stock market cycles or, classically, through recognition of chart patterns. Charting Charting analysis seeks to identify resistance and support reference prices for decisions to buy (price hits the support) or sell (price hits the resistance). Through charting, the analysis seeks to identify price patterns and market trends in financial markets. Charting may apply to long-term investing or be used as a market-timing strategy, depending on the timeframe of the price charts. Cyclical Cyclical analysis generally targets cyclical stocks for purchase of equity securities when the ratio of price-to-earnings (P/E Ratio) is low and sell them when the P/E Ratio is high (i.e. when earnings are peaking). The P/E Ratio is a measure of the price paid for a share relative to the annual net income or profit earned by Mosaic per share. SOURCES OF INFORMATION The main sources of information that Mosaic uses to analyze these investment strategies is:  Financial News Papers & Magazines  Research materials prepared by others  YCharts  Morningstar  Annual Reports & Prospectuses  Corporate rating services  Company Press Releases  SEC Filings  World Wide Web  Aladdin Page 23 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  INVESTMENT STRATEGIES Mosaic uses the following investment strategies when managing client family assets and/or providing investment advice:  Long-Term Purchases, which are investments, held at least a year.  Short-Term purchases which are investments sold within a year.  Option Writing including covered options, uncovered options, and / or spreading strategies. Mosaic may use option writing sparingly from time-to-time. RISK OF LOSS Client families must understand that past performance is not indicative of future results. Therefore, current, and prospective client families (including you) should never assume that the future performance of any specific investment or investment strategy will be profitable. Investing in securities (including stocks, mutual funds, and bonds) involves risk of loss. Further, depending on the different types of investments there may be varying degrees of risk. Client families and prospective client families should be prepared to bear investment loss including loss of original principal. Because of the inherent risk of loss associated with investing, Mosaic is unable to represent, guarantee, or even imply that our services and methods of analysis can or will predict future results, successfully identify market tops or bottoms, or insulate you from losses due to market corrections or declines. There are certain additional risks associated when investing in securities through my investment management program. Page 24 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  Market Risk Either the stock market as a whole or the value of an individual company because of moves in the overall market goes down resulting in a decrease in the value of client family investments. This is also referred to as systemic risk. Stock (Equity) Risk Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. If you held common stock, or common stock equivalents, of any given issuer, you would generally be exposed to greater risk than if you held preferred stocks and debt obligations of the issuer. Company Risk When investing in stock positions, there is always a certain level of company or industry specific risk that is inherent in each investment. This is also referred to as an unsystematic risk and can be reduced through appropriate diversification. There is the risk that the company will perform poorly or have its value reduced based on factors specific to the company or its industry. For example, if a company’s employees go on strike or the company receives unfavorable media attention for its actions, the value of the company may be reduced. Bond (Fixed Income) Risk When investing in bonds, there is the risk that the issuer will default on the bond and be unable to make payments. Further, individuals who depend on set amounts of periodically paid income face the risk that inflation will erode their spending power. Fixed-income investors receive set, regular payments that face the same inflation risk. Options Risk Options are contracts giving the purchaser the right to buy or sell a security, such as stocks, at a fixed price within a specific period. Options may be subject to greater fluctuations in value than an investment in the underlying securities. Buying and / or selling options (puts and / or calls) is highly specialized activities and entail greater than ordinary investment risks. Exchange Traded Funds An exchange traded fund (“ETF”) is a type of investment company that is traded on an exchange and invests primarily in a basket of securities including in a particular market index. ETFs typically seek to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the underlying benchmark index. Investing in an ETF exposes you to the risks of the ETF’s holdings in direct proportion to the allocation of assets that comprise the ETF. However, ETFs may not fully replicate the construction of their benchmark index, resulting in performance that differs from expectations. In addition, ETFs trade at a discount or premium to their underlying net asset value (“NAV”). As a result, investors purchasing an ETF at a premium may underperform the ETF NAV, while the redemption of shares may result in the ETF trading at a discount to NAV. Page 25 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  ETF & Mutual Fund Risk When we invest in an ETF or mutual fund for a client family, the client family will bear additional expenses based on its pro-rata share of the ETFs or mutual fund’s operating expenses, including the potential duplication of management fees. The risk of owning an ETF or mutual fund generally reflects the risks of owning the underlying securities the ETF or mutual fund holds. Client families will also incur brokerage costs when purchasing ETFs. Illquid Investments Risk Illquid investments may be recommended in specific circumstances. These investments are susceptible to many of the same risks as other securities, but also include risks such as liquidity, transparency, and tax. Management Risk Your investment with Mosaic varies with the success and failure of our investment strategies, research, analysis, and determination of portfolio securities. If our investment strategies do not produce the expected returns, the value of the investment will decrease. 55-ip & Blackrock Model Portfolios In certain cases, Mosaic may utilize model portfolios for specific accounts, such as those under $1,000,000, or accounts held by tax deferred (e.g., IRA) or tax free vehicles (e.g., Donor Advised Fund or Private Family Foundation). Blackrock provides model portfolios (comprised of exchange traded funds or a combination of mutual funds and exchange traded funds) to be implemented through 55- ip, a wholly owned subsidiary of JP Morgan Chase, with no additional cost beyond the cost of the underlying investments. The models are comprised of both Blackrock's own proprietary ETFs and other third-party asset manager’s ETFs such as Vanguard, which Mosaic can then choose from and implement through 55-ip at its discretion. Mosaic uses 55-ip to monitor certain portfolios, provide trading signals regarding tax transition, tax- loss harvesting, and model implementation. 55-ip receives a daily download of Mosaic transactions and holdings data from Schwab. 55-ip delivers trade lists to Mosaic. Mosaic can choose to implement, reject, or amend these trade recommendations for certain client family accounts. Mosaic has chosen to use 55-ip to implement models for certain client families provided by Blackrock at this time. To use 55-ip without any additional cost to the client family or to Mosaic, Mosaic is limited to using models provided by the third-party asset managers approved on the 55-ip platform. A potential conflict exists as Blackrock has an incentive to recommend the use of its own proprietary ETFs. Since Mosaic is being provided with access to 55-ip by Blackrock, to receive the benefits of 55- ip, Mosaic may be influenced to utilize Blackrock ETFs to a greater degree than if they were not given access to 55-ip. Mosaic considers the cost of the underlying investments as well as the cost of implementing the model portfolios when deciding whether to use a given model portfolio or investment product on behalf of a client family. Mosaic receives no direct monetary benefits from Blackrock for the use of its models, but Mosaic does receive access to investment research and other investment related tools. Page 26 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  Please Note: Mosaic’s Chief Compliance Officer, Carey Kesner, remains available to address any questions that you may have regarding Mosaic’s use of 55-ip, including the conflict of interest presented by such arrangement. Please Further Note: If a client family seeks to prohibit or limit the amount of assets allocated to the Blackrock model strategies, the client family can do so, in writing, addressed to Mosaic’s Chief Compliance Officer. ITEM 9 DISCIPLINARY INFORMATION Registered investment advisers are required to disclose all material facts regarding any legal or disciplinary events that would be material to your evaluation of Mosaic or the integrity of Mosaic’s management. Mosaic has no information which is applicable to this Item. ITEM 10 OTHER FINANCIAL INDUSTRY ACTIVITIES & AFFILIATIONS Neither Mosaic, nor its representatives, are registered or have an application pending to register, as a broker- dealer or a registered representative of a broker-dealer. Neither Mosaic, nor its representatives, are registered or have an application pending to register, as a futures commission merchant, commodity pool operator, a commodity trading advisor, or a representative of the foregoing. Mosaic may refer client families to other third-party professional advisors, which could include banking institutions, valuation firms, accounting firms, law firms, real estate brokers, and pension consultants. Mosaic does not receive any compensation for any such referrals. Mosaic does not receive, directly or indirectly, compensation from investment advisors that it recommends or selects for its client families. INSURANCE AGENCY Mosaic Insurance Agency, LLC (“Mosaic Insurance”), a wholly owned subsidiary of Mosaic Wealth Partners, is a licensed insurance agency that serves as a servicing agent for policies, analyzes existing life insurance policies, and when appropriate, recommends the purchase of life insurance products. If a life insurance product is purchased from Mosaic Insurance as agent, Mosaic Insurance will receive commission compensation which creates a conflict of interest. Licensed personnel devote less than 5.0% of their time to this activity. These commissions are separate from and in addition to Mosaic’s retainer. For additional context, anticipated commissions from Life Insurance represent less than 1.0% of Mosaic’s total revenue. Mosaic addresses this potential conflict by recommending insurance only when they believe it is in the best interests of the client family, after conducting a thorough analysis, routinely recommending the use of non- affiliated insurance agents instead of Mosaic Insurance. Client families are under no obligation to purchase insurance through Mosaic Insurance and are free to use any non-affiliated insurance provider of their choice. For any questions regarding this disclosure or Mosaic’s approach to insurance recommendations, please contact Mosaic’s Chief Compliance Officer, Carey Kesner. Page 27 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  ITEM 11 CODE OF ETHICS, PARTICIPATION, OR INTEREST IN CLIENT TRADING GENERAL Mosaic has adopted a Code of Ethics for all supervised persons of Mosaic describing its high standard of business conduct, and fiduciary duty to its client families. The Code of Ethics includes provisions relating to the confidentiality of client family information, a prohibition on insider trading, a prohibition of rumor mongering, restrictions on the acceptance of significant gifts and the reporting of certain gifts and business entertainment items, and personal securities trading procedures, among other things. All supervised persons at Mosaic must acknowledge the terms of the Code of Ethics annually, or as amended. PERSONAL TRADING Mosaic and our related persons may purchase and sell securities for their own account. To prevent conflicts of interest, all employees of Mosaic must comply with our Code of Ethics, which imposes restrictions on the purchase or sale of securities for their own accounts and the accounts of certain affiliated persons. A copy of Mosaic's Code of Ethics can be requested by contacting Carey Kesner, Chief Compliance Officer. INSIDER INFORMATION The Code of Ethics imposes certain policies and procedures concerning the misuse of material non-public information that are designed to prevent insider trading by any officer, partner, or associated person of Mosaic. Mosaic and/or its representatives may buy or sell securities, at or around the same time as those securities are recommended to client families. This practice creates a situation where Mosaic and/or representatives of Mosaic are able to materially benefit from the sale or purchase of those securities. Therefore, this situation creates a conflict of interest. As indicated above in Item 11, Mosaic has a personal securities transaction policy in place to monitor the personal securities transaction and securities holdings of each of Mosaic’s Access Persons. ITEM 12 BROKERAGE PRACTICES If the client family requests that Mosaic recommend a custodian for execution and/or custodial services, Mosaic generally recommends that accounts be maintained at Schwab. Prior to engaging Mosaic to provide investment management services, the client family will be required to enter into a formal Investment Advisory Agreement with Mosaic setting forth the terms and conditions under which Mosaic shall advise on the client family's assets, and a separate custodial agreement with each designated custodian. Factors that Mosaic considers in recommending Schwab (or any other custodian to client families) include historical relationship with Mosaic, financial strength, reputation, execution capabilities, pricing, research, and service. Although the transaction fees paid by Mosaic’s client families shall comply with Mosaic’s duty to seek best execution, a client family may pay a transaction fee that is higher than another qualified custodian might charge to affect the same transaction where Mosaic determines, in good faith, that the transaction fee is reasonable. In seeking best execution, the determinative factor is not the lowest possible cost, but whether the transaction represents the best qualitative execution, taking into consideration the full range of a broker- dealer’s services, including the value of research provided, execution capability, transaction rates, and Page 28 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  responsiveness. Accordingly, although Mosaic will seek competitive rates, it may not necessarily obtain the lowest possible rates for client family account transactions. Transaction fees charged by the designated custodian are exclusive of, and in addition to, Mosaic’s investment advisory fee. RESEARCH & BENEFITS Although not a material consideration when determining whether to recommend that a client family utilize the services of a particular custodian, Mosaic can receive from Schwab (or another custodian, investment manager, platform sponsor, mutual fund sponsor, or vendor) without cost (and/or at a discount) support services and/or products, certain of which assist Mosaic to better monitor and service client family accounts maintained at such institutions. Included within the support services that can be obtained by Mosaic can be investment-related research, pricing information and market data, software and other technology that provide access to client family account data, compliance and/or practice management-related publications, consulting services, attendance at conferences, meetings, and other educational and/or social events, marketing support-including client family events, computer hardware and/or software and/or other products used by Mosaic in furtherance of its investment advisory business operations. Certain of the above support services and/or products assist Mosaic in managing and administering client family accounts. Others do not directly provide such assistance, but rather assist Mosaic and/or its representatives. Client families do not pay more for investment transactions affected and/or assets maintained at Schwab because of this arrangement. There is no corresponding commitment made by Mosaic to Schwab, or any other entity, to invest any specific amount or percentage of client family assets in any specific funds, securities, or other investment products as a result of the above arrangement. Mosaic does not receive client referral from any broker-dealer. ANY QUESTIONS: Mosaic’s Chief Compliance Officer, Carey Kesner, remains available to address any questions that a client family or prospective client family may have regarding the above arrangements and the corresponding conflict of interest presented by such arrangements. DIRECTED BROKERAGE As indicated above, Mosaic generally recommends that its client families utilize the brokerage and custodial services provided by Schwab. Mosaic may accept directed brokerage arrangements (when a client family requires that account transactions be affected through a specific custodian. In such client family directed arrangements, the client family will negotiate terms and arrangements for their account with that broker- dealer, and Mosaic will not seek better execution services or prices from other custodians or be able to "batch" the client family’s transactions for execution through other custodians with orders for other accounts managed by Mosaic. As a result, a client family may pay higher commissions or other transaction costs or greater spreads, or receive less favorable net prices, on transactions for the account than would otherwise be the case. Please Note: If the client family directs Mosaic to effect transactions for the client family’s accounts through a specific custodian, the client family correspondingly acknowledges that such direction may cause the accounts to incur higher commissions or transaction costs than the accounts would otherwise incur had the client family determined to effect account transactions through alternative clearing arrangements that may be available through Mosaic. Higher transaction costs adversely impact account performance. Please Also Note: Transactions for directed accounts will generally be executed following the execution of portfolio Page 29 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  transactions for non-directed accounts. ORDER AGGREGATION Transactions for each client family account generally will be affected independently unless Mosaic decides to purchase or sell the same securities for several client families at approximately the same time. Mosaic may (but is not obligated to) combine or “bunch” such orders to obtain best execution, to negotiate more favorable commission rates or to allocate equitably among Mosaic’s client family’s differences in prices and commissions or other transaction costs that might have been obtained had such orders been placed independently. Under this procedure, transactions will be averaged as to price and will be allocated among client families in proportion to the purchase and sale orders placed for each client family account on any given day. Mosaic shall not receive any additional compensation or remuneration because of such aggregation. ITEM 13 REVIEW OF ACCOUNTS ACCOUNT REVIEW Carey Kesner, Mosaic Chief Compliance Office, or his designee(s) will review all accounts on an annual basis and compare each investment transaction to ensure that they are: (i) suitable to the respective client family’s investment objectives; (ii) meets that client family’s quality standards; and (iii) to make sure that their investment objectives are still pertinent to the managed account arrangement. More frequent reviews can be triggered by material changes in variables such as the client family’s individual circumstances or the market economic or political environment. REPORTS Each client family will receive a performance report regarding its investments on a quarterly basis or as agreed with the client family. If a review of a client family’s account is warranted, a report will be issued on an as- needed basis. Client families should receive at least quarterly brokerage transaction confirmations and statements from the custodian of the account that holds or maintains client family investments. TRADE ERRORS In the event of a trade error in your account, our policy is to attempt to correct trading errors as soon as they are discovered; however, Mosaic may not be responsible for poor executions or trading errors committed by the brokers with which it transacts, unless such errors resulted from Mosaic Advisor’s negligence, fraud, or willful misconduct. Notwithstanding the above, based on the circumstances, corrective actions may include:  canceling the trade; and / or  adjusting an allocation; and / or  reimbursement to the account ITEM 14 CLIENT REFERRALS & OTHER COMPENSATION As referenced in Item 12.A.1 above, Mosaic receives indirect economic benefits from Schwab. The Registrant, without cost (and/or at a discount), may receive support services and/or products from Schwab. There is no corresponding commitment made by Mosaic to Schwab or any other entity to invest any specific amount or percentage of client assets in any specific mutual funds, securities or other investment products as Page 30 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  a result of the above arrangement. Mosaic does not compensate unaffiliated individuals or entities for client family introductions. ITEM 15 CUSTODY Mosaic shall have the ability to deduct its fee from the client family’s custodial account. Client families are provided with written transaction confirmation notices, and a written summary account statement directly from Schwab at least quarterly. To the extent that Mosaic provides client families with periodic account statements or reports, the client family is urged to compare any statement or report provided by Mosaic with the statements received from the account custodian. The custodian does not verify the accuracy of Mosaic’s advisory fee calculation. In addition, certain client families have established asset transfer authorizations that permit the qualified custodian to rely upon instructions from Mosaic to transfer client family funds or securities to third parties. These arrangements are disclosed in Item 9 of Part 1 of Form ADV. However, in accordance with the guidance provided in the SEC’s February 21st, 2017, Investment Adviser Association No-Action Letter, the affected accounts are not subject to an annual surprise CPA examination. ANY QUESTIONS: Mosaic’s Chief Compliance Officer, Carey Kesner, remains available to address any questions that a client family or prospective client family may have regarding custody-related issues. ITEM 16 INVESTMENT DISCRETION DISCRETIONARY AUTHORITY Mosaic usually receives discretionary authority from a client family at the outset of a relationship. That discretionary authority allows us to make determinations regarding the securities that are to be bought and sold, as well as the quantities of such securities. Prior to Mosaic assuming discretionary authority over a client’s account, client shall be required to execute an Investment Advisory Agreement, naming Mosaic as client’s attorney and agent in fact, granting Mosaic full authority to buy, sell, or otherwise effect investment transactions involving the assets in the client’s name found in the discretionary account. DISCRETIONARY PORTFOLIO MANAGEMENT In all cases, however, such discretion is to be exercised in a manner consistent with the stated investment objectives for the account. Thus, when selecting securities and determining amounts, we observe the investment policies, limitations, and restrictions of the client families for which it advises. Additionally, in many cases, the discretion is subject to mutually agreed upon investment guidelines relative to the client family’s portfolio. Investment guidelines and restrictions must be provided to Mosaic in writing. ITEM 17 VOTING CLIENT SECURITIES Mosaic does not have any authority to and does not vote proxies on behalf of client families. Client families retain the responsibility for receiving and voting proxies for all securities maintained in their portfolios. Mosaic will not be responsible, and each client family has the right and responsibility to take any actions with respect to any legal proceedings, including without limitation, bankruptcies and shareholder litigation, and the right to initiate or pursue any legal proceedings, including without limitation, shareholder litigation, including Page 31 M o s a i c | 3 7 7 3 R i c h m o n d A v e | S u i t e 7 0 0 | H o u s t o n | T X | 7 7 0 4 6 | ( 7 1 3 ) 9 8 0 - 4 1 0 0  with respect to transactions, securities or other investments held in the client family’s account or the issuers thereof. ITEM 18 FINANCIAL INFORMATION Mosaic is required to provide you with certain financial information or disclosures about financial conditions which would impede our ability to provide the advisory services described herein. Mosaic has no financial commitments that impair our ability to meet contractual and fiduciary commitments to client families and has not been the subject of a bankruptcy proceeding, nor do we require or solicit prepayment of more than $1,200 in fees per client family, six months or more in advance. Therefore, we have no additional material financial disclosures to make. ITEM 19 OTHER INFORMATION SUMMARY PRIVACY POLICY Mosaic does not disclose nonpublic personal information about our client families or former client families except as permitted by law. We restrict access to nonpublic personal information about you (that we may obtain from your account and your transactions) to those employees who need to know that information to provide products or services to you or to alert you to new, enhanced, or improved products or services we provide. We maintain physical, electronic, and procedural safeguards that comply with federal standards to safeguard your nonpublic personal information. BUSINESS CONTINUITY PLAN Mosaic has developed a Business Continuity Plan to address how we will respond to events that may disrupt its business. Since timing and impact of disasters is unpredictable, we will have to be flexible in responding to the events as they occur. This plan is designed to permit us to resume operations as quickly as possible, given the scope and severity of the significant business disruption. The Business Continuity Plan covers data backup and recovery, mission critical systems financial and operational assessments, alternative communications, alternate business locations, bank and counter-party impact, regulatory reporting and the assurance of prompt access to funds and securities for our customers. Varying Disruptions – Significant business disruptions can vary in their scope, such as emergencies affecting only a single building housing Mosaic, the business district where we are located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only us or a building housing us, we will transfer our operations to an emergency-ready local site, moving a select group of trained employees and expecting to recover and resume business within four hours. In a disruption affecting our business district, city, or region, we will move appropriate staff to a site outside of the affected area to be able to communicate with the custodian on behalf of our client families. In either situation, we plan to continue business, transferring operations to our clearing firm, if necessary. If you have questions about our Business Continuity Plan, please feel free to contact Carey Kesner, Chief Compliance Officer at (713) 980-4100 or at compliance@mosaicadvisors.com. Any Questions: Mosaic’s Chief Compliance Officer, Carey Kesner, remains available to address any questions regarding this Part 2A. 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