MOTOROLA SOLUTIONS 401(k) PLAN ANNUAL FEE DISCLOSURE - APRIL 2015

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1 MOTOROLA SOLUTIONS 401(k) PLAN ANNUAL FEE DISCLOSURE - APRIL 2015 THIS NOTICE INCLUDES IMPORTANT INFORMATION ABOUT OPTIONS, FEES AND OTHER EXPENSES IN THE MOTOROLA SOLUTIONS 401(k) PLAN (THE PLAN ). The Plan is a great way to save for your future with: Convenient automatic savings through pretax and after-tax payroll deductions. Company contributions that match 100% of your pretax contributions up to 4% of your eligible pay, plus a potential discretionary match based on our financial performance. Low cost, comprehensive investment funds only available to large, institutional investors. WHAT S INSIDE FEES AND EXPENSES OPTIONS -RELATED INFORMATION TERMS YOU SHOULD KNOW FEES AND EXPENSES As with other investments, you pay certain fees and expenses: Asset-based fees are charged directly to the Plan s investment options and reduce your investment earnings. Although you won t see details about these fees in your 401(k) account balance, they re shown under Investment-Related Information on pages 3 and 4 of this statement. Asset-based fees are used to pay for investment management fees and services to the Plan such as trustee, legal, accounting and participant services. When you decide to invest in any of the Plan s investment funds, there are no upfront sales loads or charges. Administrative fees are charged to your account for recordkeeping expenses and individual fees are charged based on activity you ve requested. (See the next page to learn more about these fees.) Fees and expenses are important because their cumulative effect can substantially reduce the growth of your account over the long term. You can find an example that illustrates this on the Department of Labor s website at But fees are only one factor to consider when making your investment decisions. You should also consider other key factors such as asset class and investment risk, investment objectives, investment strategies and historical performance.

2 ADMINISTRATIVE AND INDIVIDUAL FEES IN THE MOTOROLA SOLUTIONS 401(k) PLAN ADMINISTRATIVE FEES The Plan is charged fees for recordkeeping services to maintain your account. As a participant, you re charged $3.59 per month to cover these costs. These fees are charged directly to your account and are deducted proportionately from the investment fund balances in your account. ADVICE FEES If you don t participate in the Financial Engines Professional Management Program, you pay $1.87 per quarter for Financial Engines Online Advice services that are available to you as a Plan participant. These fees are charged directly to your account and are deducted proportionately from the investment fund balances in your account. PROFESSIONAL MANAGEMENT PROGRAM FEES If you participate in the Financial Engines Professional Management Program, you pay a fee based on the size of your account balance as follows: Up to $5,000 No fee $5, to $100, percent of your account balance $100, to $250, percent of your account balance $250, or more 0.10 percent of your account balance These fees are charged quarterly to your account at one-fourth of the annual fee based on your account balance at the end of each quarter. These fees are deducted proportionately from the investment fund balances in your account. LOAN FEE You pay a $50 fee when you take a loan from the Plan. This fee is taken out of your loan proceeds. DOMESTIC RELATIONS ORDER FEE You pay a $350 fee when a domestic relations order is processed on your account. This occurs when a court awards a portion of your account to another person due to a divorce settlement. The fee is deducted before the order is applied. This fee is charged directly to your account and is deducted proportionately from the investment fund balances in your account. OPTIONS As a participant in the Plan, you re responsible for investing your 401(k) account in one or any combination of the Plan s investment funds. The Investment-Related Information section on pages 3 and 4 provides specific information about the available fund options. You may change your investment elections as often as you like, but keep in mind that the International Equity Fund is subject to trading restrictions. These trading restrictions are listed in the table on page 4. CHOOSING YOUR STRATEGY How you invest should depend on your age, lifestyle, accumulated wealth, years to retirement and comfort level with risk. This statement only provides some information about your investment choices such as fees, expenses and historical returns. Your decisions should be based on your individual situation, not just the information in this statement. 2

3 OPTIONS To learn more about our Plan s investment funds and fees, visit Your Benefits Resources for fund facts, fund performance, and other information about the funds. You can request paper copies of the information that is available online by calling the Employee Service Center at (800) (from outside the U.S., call (646) ). Representatives are available from 7 a.m. to 5 p.m. Central time, Monday through Friday. TO ENROLL OR MAKE CHANGES TO YOUR S You can enroll in the Plan or make changes to your investments at any time by logging on to Your Benefits Resources. Enroll - simply go to Savings and Retirement > Contributions > Start Saving. Change your current investment mix or your investment elections for future contributions - go to Savings and Retirement > Manage Investments > Change Investments and follow the instructions on the website. MANAGED ACCOUNT SERVICES To help you with your investment strategy, you can sign up for the Professional Management Program. Financial Engines, an independent registered investment advisor, provides investment advice and managed account services to you as a Plan participant. When you enroll in this program, Financial Engines will select and manage your 401(k) account investments for you. If you don t make an investment election for your contributions to the Plan, you ll be automatically enrolled in the Professional Management Program unless you opt-out. See the Administrative and Individual Fees in the 401(k) Plan table on page 2 for fees that apply to this program. If you re unable to log on to Your Benefits Resources, you can enroll or change your investment options by calling the Employee Service Center as noted above. -RELATED INFORMATION The table on the next page provides information about the Plan s investment options that have a variable rate of return. You ll find three things: 1. General information about the type of investment option. 2. Fee information, including asset-based fees (often called the expense ratio), and investment restrictions. 3. Historical performance for each fund and an appropriate benchmark for the same period of time. Please remember that past performance doesn t guarantee how the investment option will perform in the future. Your investments in the Plan s fund options could lose money. Information about an investment option s principal risks is available on Your Benefits Resources. 3

4 GENERAL INFORMATION FEE INFORMATION HISTORICAL PERFORMANCE FUND NAME / BENCHMARK PLAN FUNDS Short-Term Investment Fund Benchmark: Merrill Lynch 91-Day T-Bill Short-Term Fund Benchmark: Barclays 1-3 Year Government Long-Term Fund ** Benchmark: Barclays U.S. Aggregate Balanced Fund I Benchmark: 48% S&P 500 / 12% MSCI EAFE 2 / 40% Barclays U.S. Aggregate Balanced Fund II Benchmark: 60% S&P 500 / 15% MSCI EAFE 2 / 25% Barclays U.S. Aggregate Large Company Equity Fund Benchmark: S&P 500 Mid-Sized Company Equity Fund Benchmark: S&P Mid Cap 400 International Equity Fund *** Benchmark: MSCI EAFE 2 USD Small Company Equity Fund Benchmark: Russell 2000 ASSET CLASS Institutional Money Market Short-Term U.S. Government Intermediate Investment Grade Debt Mixed-Asset Target Allocation Moderate Mixed-Asset Target Allocation Growth S&P 500 Index Objective Mid-Cap Core International Large-Cap Core Small-Cap Core TOTAL ASSET- BASED FEE 1 ANNUAL COST PER $1,000 OF RESTRICTIONS 0.035% $0.35 N/A 0.15% 0.02% 0.037% $0.37 N/A 0.74% 0.64% 0.037% $0.37 N/A 6.10% 5.97% 0.044% $0.44 N/A 8.57% 8.23% 0.046% $0.46 N/A 9.03% 8.85% 0.035% $0.35 N/A 13.74% 13.69% 0.035% $0.35 N/A 9.80% 9.77% 0.106% $1.06 See Note below Note: If you transfer an amount into the International Equity Fund, there s a 14- day holding period that will occur before you may transfer this amount out of the International Equity Fund and into another investment fund in the Plan. 1 Total asset-based fees are investment management company fees plus other plan-specific costs charged to the investment fund to cover investment management services, plan administration and other plan costs. These fees are as of Dec. 31, Morgan Stanley Capital International Europe, Australasia, and the Far East AVERAGE ANNUAL TOTAL RETURNS AS OF DEC. 31, 2014 (FUND AND BENCHMARK) 1 YEAR 5 YEARS (4.67%) (4.90%) 0.045% $0.45 N/A 5.14% 4.89% ** Effective June 1, 2015, the Long-Term Fund will be called the Intermediate- Term Fund. *** Effective June 1, 2015, the fund s benchmark will be MSCI ACWI ex-u.s. IMI Index. 0.13% 0.06% 1.15% 1.09% 4.45% 4.45% 10.15% 10.15% 11.38% 11.47% 15.49% 15.45% 16.60% 16.54% 5.60% 5.33% 15.83% 15.55% 10 YEARS 1.65% 1.38% 2.38% 2.62% 4.62% 4.71% 6.69% 6.79% 6.9% 7.08% 7.61% 7.67% 9.79% 9.71% 4.65% 5.33% 7.96% 7.77% INCEPTION TO DATE 1.59% 1.35% 4.63% 4.68% 5.48% 5.62% 8.21% 8.31% 4.90% 5.11% 9.33% 9.62% 9.22% 9.35% 2.61% 2.93% 7.27% 7.42% FOR MORE INFORMATION ABOUT THIS STATEMENT For more information about this statement, contact the Employee Service Center at (800) (from outside the U.S., call +1 (646) ) or the Plan administrator: Motorola Solutions 401(k) Plan Committee Motorola Solutions, Inc E. Algonquin Road Schaumburg, IL

5 TERMS YOU SHOULD KNOW For definitions related to investments, go to Your Benefits Resources. You will find definitions in Retirement and Savings > Investment Summary > Fund Detail. Here are a few key terms and concepts to help you understand the information described in this statement. ADMINISTRATIVE FEES: Fees paid to the recordkeeper to cover expenses for things like maintaining participant data, communication materials, Internet services, assisting participants with transactions, plus fees for services requested by participants, such as obtaining a loan from the plan or processing a domestic relations order. ASSET-BASED FEES: Fees that are charged as a percent of holdings in an investment to cover investment management fees, plus any asset-based administrative service fees, fees paid to a trustee to manage some operations of the plan including trading and holding assets, and fees paid for legal and accounting services. Asset-based fees are also referred to as the expense ratio. ASSET CLASS: A specific category of assets or investments (such as stocks, bonds or cash) as well as certain types of stocks (such as international stocks, largecap stocks, etc.). Assets within the same class generally exhibit similar characteristics. HOW ASSET-BASED FEES WORK Let s assume your 401(k) account balance is $30,000, and you ve invested in three funds as shown below. Here s an estimate of what you might pay annually in total asset-based fees. BALANCE ASSET-BASED FEES As % of Assets BENCHMARK: A benchmark is typically a market index that tracks general market performance of similar types of investments. For instance, the S&P 500 Index is commonly used as a benchmark for large-cap stocks. CORE FUNDS: Each of these funds represents a single asset class. A combination of Core is needed to have a diversified portfolio that will provide the most optimal long-term investment experience. DESIGNATED ADVISOR: Financial Engines is the organization selected by the 401(k) Plan Committee to manage investments for individuals who choose to participate in managed account services. Dollar Amount $ 10, % $ Large Cap Value 17, % International Equity Total 3,000 $ 30, % $ Because asset-based fees are accumulated daily, your actual cost will vary as your account value changes. INDIVIDUAL FEES: These fees apply to your 401(k) account and generally depend on transactions in your account, like taking a loan from the plan. Other individual fees may be charged to each participant to pay for services available to all participants, such as investment advice. MANAGEMENT FEES: Fees paid to the investment manager for selecting and managing the investments in an investment option. These fees may also include costs such as administration and other related services. PROFESSIONAL MANAGEMENT: You have the option to sign up for professional management where the designated investment advisor will manage your investment mix for you. If you choose this service, the fees described in the Administrative and Individual Fees in the 401(k) Plan table on page 2 will apply. Participants who join the Plan will automatically be enrolled in the professional management program unless they opt out. 5