Form of Nonqualified Stock Option Agreement




									
		 		 		 		 	  
 Exhibit 10.1
  


 JACOBS ENGINEERING GROUP INC. 
 NONQUALIFIED STOCK OPTION AGREEMENT 
 (1999 Stock Incentive Plan) 
 This Agreement is executed on                     , 2009, by
and between JACOBS ENGINEERING GROUP INC., a Delaware corporation (the “Company”), and                      (“Optionee”) pursuant
to the Jacobs Engineering Group Inc. 1999 Stock Incentive Plan (the “Plan”). Unless the context clearly indicates otherwise, capitalized terms used in this Agreement, to the extent they are defined in the Plan, have the same meaning as
set-forth in the Plan. 
  

	 	1.	Stock Option 

 (a) The Company hereby grants to Optionee the option
(the “Option”) to purchase up to              shares of Jacobs Common Stock at a purchase price of $             per
share, to be issued upon the exercise thereof in cumulative annual installments as follows: 
 (i) An installment of 25% of the Option shall become
exercisable one year following the date upon which this Option is granted (the “Grant Date”), with additional installments of 25% becoming exercisable on each anniversary of the Grant Date so that the Option is fully exercisable at the end
of four (4) years from the Grant Date. 
 (ii) No Option may be exercised in whole or in part prior to the one-year anniversary of the Grant Date.

 (iii) No Option may be exercised in whole or in part after the expiration of ten years from the Grant Date. 
 (b) Schedule A to the Plan establishes the effects on an outstanding Option of the Optionee’s termination of employment, other changes of employment or
employer status, death, Disability, Retirement, or a Change in Control, and is hereby incorporated by reference. Notwithstanding the provisions of Schedule A to the Plan, the provisions of Paragraph 3, below, shall apply to this Option. 

 

	 	2.	Exercise of Option 

 (a) Each installment of this Option as set forth
above may be exercised, in whole or in part, in one or more exercises, during the time periods stated above. This Option, or any exercisable portion thereof, may be exercised solely by delivery to the Company of all of the following prior to the
time when this Option or exercisable portion thereof, becomes unexercisable under Paragraph 1: 
 (i) Notice in writing signed by Optionee or another
person then entitled to exercise this Option or portion, stating that this Option or portion is being exercised; and 
 (ii) Payment of the full
purchase price of the Option. The purchase price may be paid in cash or, at the discretion of the Committee, by the delivery or constructive exchange of shares of Jacobs Common Stock that have been owned by the Optionee for at least six months prior
to the exercise, or a combination of cash and such shares having a total value equal to the option exercise price. Any shares so exchanged or assigned shall be valued at their Fair Market Value, as defined in the Plan. 
 (iii) If this Option, or any exercisable portion of this Option, is being exercised 








 
pursuant to Paragraph 4 hereof by any person or persons other than the Optionee, then proof, reasonably satisfactory to the Company, of the authority of such person or
persons to exercise this Option or portion. 
 (b) In no event may this Option be exercised in such a manner as to require the Company to issue
fractional shares. 
  

	 	3.	Effect of Engaging in Detrimental Activity 

 (a) For purposes of this
Paragraph 3, “Detrimental Activity” means activity that is determined by the Committee, in its sole and absolute discretion, to be detrimental to the interests of the Company or any of its Related Companies, including but not limited to
situations where Optionee: (1) divulges trade secrets of the Company or any Related Company, proprietary data or other confidential information relating to the Company or any Related Company or to the business of the Company or any Related
Company, (2) enters into employment with a competitor of the Company or any Related Company under circumstances suggesting that Optionee will be using unique or special knowledge gained as an employee of the Company or any Related Company to
compete with the Company or any Related Company, (3) is convicted by a court of competent jurisdiction of any felony or of a crime involving moral turpitude, (4) uses information obtained during the course of his or her employment by the
Company or any Related Company for his or her own purposes, such as for the solicitation of business or the employees of the Company or any Related Company, (5) is determined to have engaged (whether or not prior to termination due to
Retirement) in either gross misconduct or criminal activity harmful to the Company or any Related Company, or (6) takes any action that harms the business interests, reputation, or goodwill of the Company and/or any of its subsidiaries or
Related Companies. 
 (b) If the Optionee’s employment is terminated in a manner that results in the Optionee retaining an interest in the options
granted hereunder beyond the date of termination, and if an allegation of Detrimental Activity by Optionee is made to the Committee, then the Committee may suspend the exercisability of this Option for up to two months from its receipt of such
allegation to permit an investigation of the allegation. 
 (c) If the Committee, in its sole discretion, determines that the Optionee has engaged in
Detrimental Activity, then all unexercised options granted hereunder shall expire forthwith. 
  

	 	4.	Withholding Taxes 

 The payment of withholding taxes, if any, due upon
the exercise of the Option granted by this Agreement may be satisfied by instructing the Company to withhold from the shares of Jacobs Common Stock that would otherwise be issued and delivered to the Optionee upon exercise that number of shares, or
a combination of cash and shares so withheld, having a total value equal to the amount of income and withholding taxes due as determined by the Company. Any option shares so withheld shall be valued at their Fair Market Value, as defined in the
Plan. Under no circumstances can the Company be required to withhold from the shares of Jacobs Common Stock that would otherwise be issued and delivered to the Optionee upon exercise a number of shares having a total value that exceeds the amount of
withholding taxes due as determined by the Company at the time of exercise. Optionee acknowledges and agrees that the Company may delay any exercise of the options granted hereunder until the Optionee has made arrangements satisfactory to the
Company to satisfy any tax withholding obligations of the Optionee. 
  

	 	5.	Transferability of Options 








 The rights of the Optionee under this Agreement shall not be assignable or transferable except by will or by the
laws of descent and distribution. The rights of the Optionee under this Agreement shall not be assignable or transferable pursuant to a qualified domestic relations order as defined in the Code or Title I of the Employee Retirement Income Security
Act or the rules thereunder. During the lifetime of Optionee, this option shall be exercisable only by Optionee or, in the case of his or her Disability, by his personal representative. 
 After the death of Optionee, any exercisable portion of this Option may, prior to the time when such portion becomes unexercisable under the provisions of
Paragraph 1(b), above, be exercised by the Optionee’s personal representative or by any person empowered to do so under court order, by will or the laws of descent and distribution (such personal representative or other person empowered to act
under court order is hereinafter referred to as a “Third Party”). The Optionee acknowledges and agrees that the Company may delay any exercise of the options granted hereunder until it has received satisfactory proof of the Third
Party’s right to exercise the options. 
  

	 	6.	No Extensions Beyond Original Expiration Date 

 Notwithstanding any
suspension of an Option pursuant to Paragraph 3, or any delay in the exercise of an Option pursuant to Paragraph 4 or 5, no Option may be exercised after the expiration date set forth in Paragraph 1(a). 
  

	 	7.	Certain Conditions To Issue Of Shares 

 No shares may be issued upon the exercise of
this Option if, in the opinion of counsel for the Company, all then applicable requirements of the Securities and Exchange Commission and any other regulatory agencies having jurisdiction and of any stock exchange upon which the shares of the
Company may be listed are not fully met, and, as a condition of Optionee’s exercise of this Option, Optionee shall take all such action as counsel may advise is necessary for Optionee to take to meet such requirements. 
  

	 	8.	Employment 

 The rights granted to Optionee under this Agreement are
conditioned upon the agreement of Optionee to continue in the employ of the Company or of a Related Company for a period of at least one year after the date of this Agreement, and Optionee hereby so agrees and further agrees to render his services
for such period for such reasonable compensation as the Company may determine. 








	 	9.	Miscellaneous Provisions 

 This Agreement is governed in all respects
by the Plan, except as provided by the Plan, and applicable law. In the event of any inconsistency between the terms of the Plan and this Agreement, the terms of the Plan shall prevail. Optionee shall have no rights as a shareholder with respect to
shares covered by this Agreement until the issuance of such shares. The Company shall not be obligated to make any adjustment for dividends or other rights for which the record date is prior to the date the shares are issued under this Agreement.
This Agreement shall impose no obligation upon Optionee to exercise this Option. Neither the grant nor award of an Incentive Award under the Plan constitutes an agreement of employment between the Employee and the Company or a Related Company. The
receipt of an Incentive Award does not constitute a right acquired by the recipient to any other form of compensation, or to any future benefit or compensation, or to participate in any other benefit plan or program sponsored by the Company or
Related Company, or to receive additional Incentive Awards under the Plan in the future. This Agreement shall impose no obligation on the Company or any Related Company to employ Optionee for any period. This Agreement shall be construed,
administered and enforced according to the laws of the State of California. 
  

	 	10.	Code Section 409A 

 It is intended that the Option granted pursuant to
this Agreement shall not constitute a “deferral of compensation” within the meaning of Section 409A of the Code and, as a result, shall not be subject to the requirements of Section 409A. The Agreement is to be interpreted in a
manner consistent with this intention. Notwithstanding any other provision in this Agreement, the Agreement may not be modified in a manner that would cause the Option to become subject to Section 409A of the Code. 
  

	 	11.	Certain Conditions To Issue Of Shares 

 By signing below, Optionee
(1) agrees to the terms and conditions of this Agreement, and (2) confirms receipt of a copy of the Plan and all amendments and supplements thereto. 
 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set forth above. 
  

			
		 	JACOBS ENGINEERING GROUP INC.
		
	 BY:
	 	  

		
	 TITLE:
	 	 Craig L. Martin, President & CEO

		
	 DATE:
	 	    

		
		 	 EMPLOYEE

		
		 	  

		
	 DATE: