1 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. New DHS Guidance on Unspent Funding DHS issued guidance to SAAs on Feb. 13, 2012 on expediting expenditure of grant funding. $8.3B in previously awarded funding available as of Jan 2012 States put on notice that DHS will reclaim funding if not spent by certain dates: All FY07 funding must be spent by June 30, 2012 All FY08 and FY09 funding must be spent by Sept. 30, 2012 All FY10 funding must be spent by Sept. 30, 2013 All FY11 and FY12 funding must be spent by end date cited on award agreement. Any proposed extension requests must be submitted to FEMA by April 30, 2012 and will be granted only due for compelling reasons (e.g., specific statute or regulation mandates environmental review that cannot be completed within specified timeframe).

2 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. New DHS Guidance on Unspent Funding DHS giving grantees additional flexibility to accelerate spending of remaining FY07-FY12 funding. Funding may be reprioritized through an expedited FEMA project approval process. Allowable expenses under Port and Transit Security Grant Programs expanded. Waiving 2008/2009 HSGP requirement to allocate 25% toward countering IEDs Waiving 50% cap on personnel costs for grants upon request Consider waivers of FY08/09 Port Security Grant Program match requirement May use funding for maintenance contracts, warranties, repairs, upgrades and user fees even if underlying equipment not purchased with funding from the same grant program

3 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. New DHS Grant Program Vision FY2012 grants setting stage for transition to new requirements in FY2013 Begin process of transitioning from 16 separate programs to more streamlined model Continue transition to core capabilities outlined in National Preparedness Goal (NPG) Implement two year period of performance with very limited extensions Changes planned for FY2013: Elevate national preparedness capabilities by focusing on regionally and nationally deployable assets Focus on building and sustaining core capabilities outlined in NPG Evaluation of new assets and capability requests will be placed in competitive pool and will be evaluated on ability for jurisdiction to build and sustain the capability as not just a local, but a nationally deployable resource that will increase core capabilities for the FEMA region Funding allocations based on prioritized core capabilities and threat/risk assessments

4 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved. New DHS Grant Program Vision Changes planned for FY2013 (cont’d): All FEMA grant programs, except EMPG and Fire grants) to be consolidated into a comprehensive National Preparedness Grant Program Multiyear grant guidance will be issued Grant awards based on validated assessments of needs and gaps for jurisdiction or region where project will be implemented All FEMA funded projects will be validated via peer review to ensure sustainment of regional and national core capabilities Allocation of FY2013 funding will be based on prioritized core capabilities as well as comprehensive threat/risk assessments and gap analyses.