Pact Inc.

“The following are significant changes made to pact's organizational documents: 1) the number of directors was reduced to 19. 2) procedures regarding annual organizational meeting were updated. 3) term limits were updated for individual board members. 4) process for ceo's voting status was edited to be determined by the board. 5) executive committee's duties were further clarified.”

“Once pact's form 990 is completed by its tax preparer, it is reviewed in detail by the controller. Once the controller is satisfied that the return is complete and accurate, it is reviewed by pact's cfo. Pact's 990 is also provided to its board of directors prior to filing. The return is posted on a secure website for a period of time, and the board is notified of its location, as well as the password. Any comments received by board members are analyzed and addressed, as appropriate, prior to submitting the return.”

“All employees are required to sign a conflict of interest policy at hiring. As of april 2011, pact also requires an annual update (review of the conflict of interest policy, and signing of a disclosure form) by all employees. Three officers (president, secretary & treasurer) are also employees. Pact's board has an annual conflict of interest acknowledgement process - each board member is required to read the policy and complete the acknowledgement form annually, in connection with the board's april meeting each year.”

“Pact's bylaws state that the "salary of the president and chief executive officer and the terms of his or her employment shall be fixed by the board of directors. The salaries of all other staff and the terms of their employment shall be fixed by the president and chief executive officer." ceo: pact's current ceo was hired in april 2009. In connection with the search for the ceo, the board used an executive search firm. That firm, in assisting the board, conducted a compensation survey and benchmarking activities to determine an appropriate market-based compensation for pact's ceo, taking into account organization size, complexity, and other relevant factors. The executive committee of the board ultimately set the ceo's salary, which was informed by the information provided by the search firm. The board conducts an annual evaluation of the ceo and awards merit-based increases as deemed appropriate. Other officers or key employees: the ceo is responsible for the compensation of other employees, but is directly involved only in the hiring and salary negotiations of c-level positions. In these cases, where pact is utilizing a search firm, the firm has provided market information to assist in the determination of appropriate compensation levels. For key employees beyond the c-suite, pact's svp of human resources is responsible for salary determinations. In many cases, pact's employees are paid under a federal award and the compensation is included in a proposal and is approved by the awarding agency, subject to the agency's compensation standards. In other cases, pact uses a series of annual salary surveys of peer organizations, conducted by an industry trade association, to inform salary levels. Insidengo, the trade association of international ngo organizations, conducts three annual surveys: salary and benefits survey for hq staff, us expatriate/tcn salary and allowances survey, and local national salary and benefits information survey. Pact also consults the forms 990 of similar organizations for salary information. All pact employees are evaluated on an annual basis, and merit-based increases are determined and awarded from an approved pool, administered by pact's svp of human resources.”

“Pact's irs determination letter, annual reports, and audited financial statements are available upon request, as well as on guidestar. Most recent forms 990 are on pact's website. Forms 990 are available on guidestar for the same period of disclosure as set forth in section 6104(d). Other governing documents are available upon request.”

“The process for overseeing the audit of the financial statements and selection of an independent accountant that audited the financial statements has been consistent with prior years.”

“The figure noted in item 5 represents only employees of pact who are us citizens. Pact has many other employees, including third country nationals and local nationals, working in our offices around the world, who are not subject to us wage and tax reporting requirements.”