R. JESSE PARSONS III, INC.

quirements do not apply to amounts credited to the participant’s account attributable to allocated cash dividends on Parsons common stock, which are not subject to forfeiture. The vesting schedule in the Parsons ESOP was amended effective January 1, 2020. For participant accounts which were not 100% vested, the vested account balance increased according to the new schedule if the participant worked one (1) hour of service on or after January 1, 2020. The vested percentage increases one level on the vesting schedule for each Plan Year in which a participant worked at least 1,000 hours. If a participant did not work at least one (1) hour of service on or after January 1, 2020, their vested account balance will remain unchanged and their account is subject to the vesting schedule in effect at

tions to participants. Certain administrative functions are performed by the officers and employees of Parsons. No such officer or employee receives compensation from the Plan. No administrative expenses were paid by the Plan for the year ended December 31, 2022. 5. Fair Value Measurements The Plan accounts for investments in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurement . ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure f