Document:

jec-ex103_116.htm

Exhibit 10.3

CH2M HILL Companies, Ltd.
Amended and Restated Long Term Incentive Plan

ARTICLE I
INTRODUCTION

1.1Establishment.  CH2M HILL Companies, Ltd., a Delaware corporation, hereby amends and restates the CH2M HILL Companies, Ltd. Long Term Incentive Plan (LTIP) effective February 20, 2017 to award incentive compensation to eligible Participants. This Plan amends, restates, and supersedes the CH2M HILL Companies, Ltd. Amended and Restated Long Term Incentive Plan dated February 11, 2016 and applies to Awards granted on or after February 20, 2017.  Awards granted prior to February 20, 2017 shall remain subject to the terms of the LTIP as in effect at the time of grant.

1.2Purposes.  The purposes of the Plan are to:

	
 
	
●
	
Reward a limited group of executives and senior leaders for the creation of value in the organization through the achievement of financial and/or strategic goals, and/or

	
 
	
●
	
Provide financial incentives to Plan Participants to incentivize their contribution to the annual and long-term financial performance of the Company, thereby increasing shareholder value.

ARTICLE II
DEFINITIONS

2.1Affiliate means any entity controlling, controlled by or under common control with the Company or any entity of which the Company directly or indirectly owns at least 20% of the equity and whose employees, directors, officers or consultants are selected by either the Committee or the Board to participate in the Plan.

 

2.2Award means a grant of Stock Instruments and/or cash under the Plan.

2.3Board means the Board of Directors of the Company.

2.4Cause means unless otherwise provided in a Grant Notice, (a) “Cause” as defined in any individual employment agreement to which the applicable Participant and the Plan Sponsor are parties, or (b) if there is no such individual employment agreement or if it does not define Cause:  (i) commission of (A) a felony (or its equivalent in a non-United States jurisdiction) or (B) other conduct of a criminal nature that has or is likely to have a material adverse effect on the reputation or standing in the community of the Plan Sponsor or an Affiliate or that legally prohibits the Participant from working for the Plan Sponsor or any Affiliate; (ii) breach by the Participant of a regulatory rule that adversely affects the Participant’s ability to perform the Participant’s duties to the Plan Sponsor and the 

 

Exhibit 10.3

Affiliates; (iii) dishonesty in the course of fulfilling the Participant’s employment duties; (iv) any material breach by the Participant of any provision of any agreement or understanding between the Plan Sponsor or an Affiliate and the Participant regarding the terms of the Participant’s service as an employee or other service provider of the Plan Sponsor or an Affiliate, including the willful and continued failure or refusal of the Participant to perform the material duties required of such Participant as an employee or other service provider of the Plan Sponsor or an Affiliate, other than as a result of having a Disability, or a breach of any applicable invention assignment, confidentiality or other restrictive covenant agreement or similar agreement between the Plan Sponsor or an Affiliate and the Participant; or (iv) any other misconduct by the Participant that is materially injurious to the financial condition or business reputation of, or is otherwise materially injurious to, the Plan Sponsor or an Affiliate.

2.5CEO means Chief Executive Officer of CH2M HILL Companies, Ltd.

2.6Change in Control.  For purposes of the Plan, a Change in Control will occur if any one of the following events occurs: 

 

	
 
	
(a)
	
Any one person, or more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50% of the total fair market value of Company stock.  However, if any one person or more than one person acting as a group, owns more than 50% of the total fair market value of Company stock, the acquisition of additional stock by the same person or persons is not considered to cause a change in the ownership of the Company (or to cause a change in the effective control of the Company).  

	
 
	
(b)
	
There is a change in the effective control of the Company.  A change in the effective control of the Company occurs on the date that either:

	
 
	
 (i) 
	
Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company that represents 30% or more of the total voting power of Company stock; or

	
 
	
 (ii)
	
 a majority of members of the Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.

	
 
	
(c)
	
Any one person, or more than one person acting as a group, acquires ownership of all or substantially all of the assets of CH2M HILL Companies, Ltd. 

 

Exhibit 10.3

	
 
	
(d)
	
The stockholders of the Company approve a plan of liquidation or dissolution of CH2M HILL Companies, Ltd. and such transaction is consummated.  

For purposes of this definition “persons acting as a group” shall have the following meaning:  Persons will not be considered to be acting as a group solely because they purchased stock of the Company at the same time, or as a result of the same public offering.  However, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the corporation.  If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.

For the avoidance of doubt, this Section shall be interpreted in accordance with Treasury guidance for the definition of  “change in the ownership of a corporation” and “change in the effective control of a corporation” under Section 409A of the Code.

 

2.7Code means the Internal Revenue Code of 1986, as amended from time to time.

2.8Committee means a committee established under Article V of the Plan.

2.9Company means the Plan Sponsor.

2.10Disability means a disability of the Employee pursuant to which the Employee is entitled to disability benefits from the long-term disability program of the Company or an Affiliate. 

2.11Employee means an individual who is employed by the Company or an Affiliate.

2.12Effective Date means the effective date of the Plan, which is February 20, 2017.

2.13Good Reason means, without the Participant’s consent following a Change in Control: (a) a material reduction in the position or responsibilities of the Participant; (b) a material reduction in the Participant’s base salary; or (c) a relocation of the Participant’s primary assigned work location to a distance of more than fifty (50) miles from its location as of the date of a Change in Control.

2.14Grant Notice means the notice delivered from the Company to the Participant (including via a third party vendor utilized by the Company to facilitate such grant notification) which sets forth the terms and conditions of the Participant’s Award for a Program Period.

 

Exhibit 10.3

2.15Internal Market means the limited internal market maintained by the Company for the purchase and sale of its common stock.

2.16Participant means an Employee designated to be eligible to receive an Award under the Plan as provided in Article III.

2.17Performance-Based Compensation means compensation under an Award that is intended to satisfy the requirements of Section 162(m) of the Code for “performance-based compensation” paid to a participant who is deemed a “covered employee” within the meaning of Code § 162(m)(3).  Notwithstanding the foregoing, nothing in the Plan shall be construed to mean that an Award which does not satisfy the requirements for “performance-based compensation” under Code § 162(m) does not constitute performance-based compensation for other purposes, including for purposes of Code Section 409A.

 

2.18Plan or LTIP means the CH2M HILL Companies, Ltd. Long Term Incentive Plan.

2.19Plan Sponsor means CH2M HILL Companies, Ltd.

2.20Program means each three-year LTIP cycle.

2.21Program Period means a period beginning on January 1st of the Program year and completing 36 months thereafter (ex. January 1, 2017 through December 31, 2019).

2.22Retirement means the termination of employment by the Participant on or after age 55, other than an involuntary termination for Cause, if the sum of the Participant’s age and years of service equals 65 or more. 

 

2.23RSU means a right to receive a share of Stock in the future upon satisfaction of the applicable vesting conditions.  RSUs constitute Stock Instruments hereunder.

2.24Stock or Stock Instruments means Company stock or stock equivalents granted under the Plan.

2.25Target Award means the target award amount established under the Plan for Participants. 

ARTICLE III
PARTICIPATION

The Committee, in its sole discretion and except as otherwise delegated pursuant to Sections 5.3 and 5.4 below, shall designate the Employees who may participate in the Plan for any Program Period from among the Employees of the Company or an Affiliate.   Participation in the Plan will be on a Program Period by Program Period basis, and participation in a Program Period will not, in and of itself, entitle an Employee to 

 

Exhibit 10.3

participate in any other Program Period.  The Committee shall provide each Participant with a Grant Notice reflecting the additional terms and conditions applicable to the Participant’s Award.

ARTICLE IV
LTIP AWARDS

4.1Target Awards and Performance Goals.  Within 90 days of the beginning of each Program Period, as required by the Code, the Committee (or the CEO as authorized pursuant to Sections 5.3 and 5.4 below) in its sole discretion shall establish the Target Award for each Participant and the performance goals for the Program Period and notify participants in writing. The performance required to achieve a payout at target (100% of target), as well as the minimum and maximum payouts and any interim performance goals, will be determined by the Committee. Performance goals for a Participant who is a “covered employee” within the meaning of Code § 162(m)(3) that are intended to be Performance-Based Compensation must be approved by Company shareholders in accordance with the procedures set forth in Section 162(m) of the Code.  

4.2Award Determination Process.  As soon as practicable after the end of each Program Period, and promptly following each interim performance period, the Committee shall compare actual performance during the Program Period to the performance goals for the Program Period and determine the payout percentage.  The actual aggregate payout value of the Award will be the Target Award adjusted up or down according to the payout percentage, and may be further adjusted based on individual Participant performance, or such other reason as determined in accordance with this Section 4.2. All determinations made related to attainment of performance goals shall be made in the sole discretion of the Committee, and shall be final and binding on all Participants. Unless otherwise determined by the Committee in its sole discretion, Award provisions shall not be modified or amended if the modification or amendment would cause compensation payable pursuant to such Award to fail to constitute qualified performance-based compensation under Code § 162(m).

All payments for a Program Period are totally discretionary.  The Committee (or the CEO under any delegation of authority made pursuant to Sections 5.3 and 5.4 below) may, for any reason (including, but not limited to, if the individual Participant’s actions during the Program Period, directly or indirectly, resulted in a significant negative impact to the Company and/or the advancement of the Company’s strategic objectives, and/or resulted in a violation of Company policy(ies), ethical breaches, misconduct, negligence and/or poor job performance), choose to pay an Award to any Participant that is less than the amount that would be paid based on actual achievement of the performance goals for the Program Period, including an actual payout of $0 to such Participant; provided that this authority shall not apply in connection with or following a Change in Control.  If an eligible Employee becomes a Participant in the Plan after the Program Period has begun, the Participant’s Award will be prorated accordingly.  In addition, Awards will be prorated for 

 

Exhibit 10.3

a Participant who converts to or from a part-time or flex employment status during a Program Period.

4.3Minimum and Maximum Award Payout.  The minimum Award payout for any Program Period shall be $0. The maximum Award payout for each Participant for any LTIP Program Period, shall generally not exceed 200% (2 times) of the Target Award as determined by the Committee (or the CEO under any delegation of authority made pursuant to Sections 5.3 and 5.4 below) based on performance, but will be within the discretion of the Committee to determine subject to Section 4.4 with respect to compliance with the requirements of Code § 162(m). Notwithstanding the above, the maximum award payout for any Participant for any Program Period shall not exceed $10,000,000 for any Program Period and may be adjusted to a lesser amount at the discretion of the Committee.  

4.4Code § 162(m) Compliance.  The Company intends that the Awards to Participants who are deemed “covered employees” within the meaning of Code § 162(m)(3) will satisfy the performance-based compensation requirements of Code § 162(m) so that the Company may deduct any compensation paid under the Plan for federal income tax purposes without limitation.  If any provision of this Plan or any Award would otherwise conflict with such intent, that provision, to the extent possible, shall be interpreted and deemed amended so as to avoid such conflict.  To the extent any amount payable hereunder is intended to constitute Performance-Based Compensation, such payment shall not be made unless the Committee has certified the achievement of the applicable performance goals.  

4.5Payouts of LTIP Awards.  The achievement of performance goals will be evaluated for each calendar year during a Program Period.  For the first and second years of a Program Period, a portion of the Award shall be determined and convert to time-vesting RSUs or such other consideration as determined by the Committee.  Following the end of the Program Period, the final amount of the earned Award shall be determined and converted to time-vesting RSUs or such other consideration as determined by the Committee.  Notwithstanding any other provision of the Plan to the contrary, no portion of an Award shall convert to RSUs or other consideration following a Participant’s termination of employment for any reason, and no payment shall be made with respect thereto, unless determined otherwise by the Committee in its sole discretion.  Except as provided in Article VI or Article VII or as otherwise determined by the Committee in its sole discretion, a Participant must be employed by the Company or an Affiliate as of the applicable vesting date of the RSUs or other consideration to receive a payment with respect thereto, and any RSUs shall be settled in shares of Stock (or, if determined by the Committee in its sole discretion, cash equal to the fair market value of the shares) or other consideration promptly following the applicable vesting date, and in all events no later than two and one-half months following the applicable vesting date.  Notwithstanding any other provision hereof, to the extent an Award payout would result in a Participant exceeding any ownership limits under the Company’s Articles of Incorporation and/or Bylaws, the Award shall be paid out in cash.

 

Exhibit 10.3

4.6Non-Transferability of Awards.  No Award shall be assignable or transferable.

4.7Restrictions on Transfers of Instruments.  All Stock Instruments transferred to a Participant in accordance with the Plan will be subject to the terms, conditions, and restrictions on Company Stock set forth in the Company’s Articles of Incorporation and Bylaws, as amended from time to time, and its filings with the U.S. Securities and Exchange Commission, including: (a) restrictions that grant the Company the right (but not the obligation) to repurchase shares upon termination of the shareholder’s affiliation with the Company; (b) restrictions that grant the Company a right of first refusal if the shareholder wishes to sell shares other than in the Internal Market; (c) restrictions that require the approval of the Company for any other sale of shares; and (d) the rules of the Company’s Internal Market, including but not limited to proration.

4.8Withholding Requirement.  All Awards are subject to withholding of all taxes, government mandated social benefit contributions, or other payments required to be withheld which are applicable to the Participants. If Company stock is awarded, a Participant will receive shares net of his or her tax withholding obligation if not enough cash is awarded to cover taxes.  The foregoing notwithstanding, the Committee may, in its sole discretion, permit a Participant to satisfy his or her tax withholding obligations by other means.  

ARTICLE V
PLAN ADMINISTRATION

5.1Committee.  Except as otherwise set forth in this Plan, the Plan shall be administered by the Compensation Committee appointed by and serving at the pleasure of the Board.  The composition of the Committee shall consist of those members as described in the Charter of the Committee, as may be amended from time to time (the “Charter”).

5.2Committee Meetings and Actions.   The Committee shall hold meetings and have the authority to take such action as determined in the Charter.

 

5.3Powers of Committee.  The Committee shall, in its sole discretion, select the Participants from among the Employees, select the performance goals for each Program Period, establish Target Awards for Participants for each Program Period, determine the time at which Awards are to be paid, determine actual performance against the established performance goals for purposes of Award payout calculations, and establish such other terms under the Plan as the Committee may deem necessary or desirable and consistent with the terms of the Plan. The Committee may, for any reason, choose to pay an Award to any Participant that is less than the amount that would be paid based on actual achievement of the performance goals for the Program Period, including an actual payout of $0 to such Participant. The Committee shall have the full and exclusive right to grant and determine terms and conditions of all Awards granted under the Plan. The Committee shall determine the form of notice that shall evidence the particular provisions, terms, and conditions. The Committee may from time to time adopt such rules and regulations for carrying out the 

 

Exhibit 10.3

purposes of the Plan, as it may deem proper and in the best interests of the Company. 

The Committee may from time to time delegate its responsibilities as it determines is necessary, in its sole discretion.  The Committee may correct any defect, supply any omission, and reconcile any inconsistency in the Plan.  No member of the Committee shall be liable for any action or determination made in good faith.  The determinations, interpretations and other actions of the Committee pursuant to the provisions of the Plan shall be binding and conclusive for all purposes and on all persons.  

The Committee shall approve participation, Target Awards, and any Award payout amounts for any Section 16 officers under the securities laws. 

5.4Delegation of Authority.  Pursuant to Section 5.3, the Committee delegates to the CEO the authority to select those Employees (other than Section 16 officers under the securities laws and any key executives as determined by the Committee) who shall participate in the Plan from time to time, and to establish the eligibility criteria and Target Awards for Employees participating in the Plan (other than Section 16 officers under the securities laws and any key executives as determined by the Committee).  The CEO may, for any reason, choose to pay an Award to any Participant (other than Section 16 officers under the securities laws and any key executives as determined by the Committee) that is less than the amount that would be paid based on actual achievement of the performance goals for the Program Period, including an actual payout of $0 to such Participant, provided however that such authority may only be exercised by the CEO after the Committee has determined actual performance against the established performance goals for purposes of meeting Plan criteria for the payout of Plan Awards and has determined the payout percentage under the Plan.  The CEO shall inform the Committee of any such decisions at the next regularly scheduled Committee meeting.  

Day-to-day administration of the Plan shall be performed by employees of the Company.

5.5Interpretation of Plan.  The determination of the Committee as to any disputed question arising under the Plan, including questions of construction and interpretation, shall be final, binding and conclusive upon all persons, including the Company, its shareholders, and all persons having any interest in Stock Instruments which may be or have been granted pursuant to the Plan.

5.6Limitation of Liability and Indemnification.

	
 
	
(a)
	
No member of the Committee or of the Board, nor the CEO, shall be liable for any action or determination made in good faith.

	
 
	
(b)
	
Each person who is or shall have been a member of the Committee or of the Board, and the CEO, shall be indemnified and held harmless by the Plan Sponsor against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred in connection with or resulting from 

 

Exhibit 10.3

	
 
		
any claim, action, suit or proceeding to which such person may be a party or in which such person may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid in settlement thereof, with the Company’s approval, or paid in satisfaction of a judgment in any such action, suit or proceeding against him or her, provided such person shall give the Company an opportunity, at its own expense, to handle and defend the same before undertaking to handle and defend it on such person’s own behalf.

ARTICLE VI
CHANGE IN CONTROL

6.1Pre-2017 Grants.  All outstanding Awards granted prior to February 20, 2017 shall become immediately payable in full at target and in cash upon the occurrence of a Change in Control event, except as otherwise may be provided in an individual agreement with a Participant (e.g., a Change of Control Agreement).

6.2Later Grants.  Unless the Committee determines otherwise in its sole discretion, and except as otherwise may be provided in an individual agreement with a Participant (e.g., a Change of Control Agreement), the following rules shall govern the treatment of Awards granted on or after February 20, 2017 upon the occurrence of a Change in Control Event:

	
 
	
(a)
	
To the extent the Award is not continued, assumed or substituted by the successor employer of the Participant or an Affiliate, (i) the RSUs or other consideration granted with respect to calendar years ending upon or prior to the date of the Change in Control shall fully vest, and (ii) the portion of the Award that relates to calendar years ending after the date of the Change in Control shall be converted into fully-vested RSUs  or other fully-vested consideration immediately prior to the consummation of the Change in Control based on assumed achievement of the applicable performance goals at the target level of performance.  All the vested RSUs or other consideration described herein shall be settled in the form of cash or Stock Instruments promptly following the Change in Control.

	
 
	
(b)
	
To the extent the Award is continued, assumed or substituted by the successor employer of the Participant or an Affiliate, (i) the RSUs  or other consideration granted with respect to calendar years ending upon or prior to the date of the Change in Control shall remain outstanding in accordance with their terms, and (ii) the portion of the Award that relates to calendar years ending after the date of the Change in Control shall be converted into RSUs  or other consideration immediately prior to the consummation of the 

 

Exhibit 10.3

	
 
		
Change in Control based on assumed achievement of the applicable performance goals at the target level of performance that vest in such manner as determined by the Committee.  Notwithstanding the foregoing, if the Participant’s employment is terminated without Cause or by the Participant for Good Reason, in either case during the two (2)-year period following the Change in Control, all then-outstanding RSUs or other consideration described in this Section 6.2(b) shall be 100% vested.  All RSUs or other consideration described in this Section 6.2(b) shall be settled in the form of cash or Stock Instruments promptly following the applicable vesting date.

For purposes of this Section 6.2, Awards shall be considered “assumed” if, following the Change in Control, the Award confers the right to receive, for each share of Stock subject to the Award immediately prior to the Change in Control, (i) the consideration (whether stock, cash, or other securities or property) received in the Change in Control by holders of Stock for each share held on the effective date of the Change in Control, or (ii) common stock of the successor to the Company of substantially equivalent economic value to the consideration received in the Change in Control by holders of Stock for each share held on the effective date of the Change in Control (as determined by the Committee in its discretion). The Award will be considered “substituted for” if the successor or acquiror replaces the Award with equity awards of substantially equivalent economic value measured as of the date the Change in Control occurs (as determined by the Committee in its discretion). 

7.3Section 409A.  In all events, any action under this Article VI shall comply with the applicable requirements of Section 409A of the Code (such that, for the avoidance of doubt, no action shall be taken by the Committee pursuant to this Article VI that would violate the requirements of Section 409A of the Code). 

ARTICLE VII
TERMINATION OF EMPLOYMENT

7.1General Rule.  Except as provided in Article VI, upon the Participant’s termination of employment or other service for any reason, all outstanding Awards (including, without limitation, any RSUs or other consideration issued with respect to completed calendar years in a Program Period) shall be forfeited unless determined otherwise by the Committee in its sole discretion.

7.2Retirement.  If a Participant terminates his or her employment with the Company and its Affiliates due to Retirement, any RSUs other consideration issued for calendar years ending prior to the date of such Retirement shall, subject to the Participant’s continued compliance with any covenants in the Grant Notice, continue to vest and be paid 

 

Exhibit 10.3

out at the times specified in Section 4.5 as if the Participant had remained actively employed by the Company or an Affiliate.  For the avoidance of doubt, any portion of the Award relating to calendar years ending after the date of termination shall be forfeited and no payments shall be made with respect thereto.  Under this Section 7.2, continued eligibility to vest and be paid out at the times specified in Section 4.5 is conditioned on the Participant remaining retired from the Company and not competing against the Company as such is defined in the Grant Notice. 

7.3Death/Disability.  If a Participant’s employment with the Company and its Affiliates terminates due to the Participant’s death or Disability, any RSUs or other consideration issued for calendar years ending prior to the date of such termination shall vest and shall be settled in Shares (or, if determined by the Committee in its sole discretion, cash equal to the fair market value of the Shares) as reasonably practicable thereafter and delivered to the Participant (and in all events no later than two and one-half months following the date of termination).  For the avoidance of doubt, any portion of the Award relating to calendar years ending after the date of termination shall be forfeited and no payments shall be made with respect thereto.

ARTICLE VIII
REQUIREMENTS OF LAW

8.1Requirements of Law.  All Awards pursuant to the Plan shall be subject to all applicable laws, rules and regulations.

8.2Governing Law.  The Plan and all agreements under the Plan shall be construed in accordance with and governed by the laws of the State of Delaware, United States of America. 

ARTICLE IX
CLAWBACK

This Plan incorporates by reference the Company’s clawback policy, and any Participant’s participation in this Plan is subject to such clawback policy as in effect from time-to-time.

ARTICLE X
AMENDMENT, MODIFICATION AND TERMINATION

The Committee may amend or modify any provision of the Plan at any time, and may suspend the granting of Awards under the Plan.  The Board may terminate the Plan at any time.

The Committee may determine that any Awards granted under the Plan shall be subject to additional and/or modified terms and conditions, and the terms of the Award shall be adjusted accordingly, as may be necessary to comply with or take account of any securities, exchange control, taxation laws, regulations or practice of any territory which may have 

 

Exhibit 10.3

application to the relevant Participant.

ARTICLE XI
MISCELLANEOUS

11.1Gender and Number.  Except when otherwise indicated by the context, the masculine gender shall also include the feminine gender, and the definition of any term herein in the singular shall also include the plural.

11.2No Right to Continued Employment.  Nothing contained in the Plan or in any Award granted under the Plan shall confer upon any Participant any right with respect to the continuation of the Participant’s employment by, or consulting relationship with, the Company or an Affiliate, or interfere in any way with the right of the Company or an Affiliate, subject to the terms of any separate employment agreement or other contract to the contrary, at any time to terminate such services or to increase or decrease the compensation of the Participant from the rate in existence at the time of the grant of an award.  Any Participant who leaves the employment of the Company or an Affiliate shall not be entitled to any compensation for any loss of any right or any benefit or prospective right or benefit under this Plan which the Participant might otherwise have enjoyed whether such compensation is claimed by way of damages for wrongful dismissal or other breach of contract or by way of compensation for loss of office or otherwise.

11.3Section 409A.  This Plan and all Awards hereunder shall, to the extent Section 409A of the Code applies, be interpreted and applied in accordance with the requirements of Section 409A of the Code.  For the avoidance of doubt, if a Participant is a “specified employee” (as determined pursuant to Section 409A of the Code), any payments hereunder shall be delayed until six months following the Participant’s separation from service to the extent required by Section 409A of the Code, and “termination of employment” shall mean “separation from service” to the extent required by Section 409A of the Code. 

 

Exhibit 10.3

CH2M HILL Companies, Ltd.
Amended and Restated Long Term Incentive Plan

Amendment effective December 15, 2017

 

ARTICLE I
BACKGROUND 

On August 1, 2017, CH2M HILL Companies, Ltd. (the “Company”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Jacobs Engineering Inc. (“Jacobs”), and Basketball Merger Sub Inc. (“Merger Sub”), pursuant to which and subject to the terms and conditions therein, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and becoming a wholly-owned subsidiary of Jacobs (the “Merger”). In connection with the proposed Merger, the Board of Directors of the Company adopted the following changes to the CH2M HILL Companies, Ltd. Amended and Restated Long Term Incentive Plan effective February 20, 2017 (the “LTIP”), with such changes to be effective as of the Effective Time (as defined in the Merger Agreement, the “Effective Time”) of the Merger.  

 

ARTICLE II
EQUITY AWARD ROLLOVER

2.1Company Assumed Restricted Stock Units.  Each Award (as defined in the LTIP, an “Award”) in the form of a restricted stock unit granted after February 28, 2017 under the LTIP in respect of shares of common stock, par value $0.01 per share, of the Company (the “Shares”) and held by an employee of the Company who continues to be employed by Jacobs and its subsidiaries (the “Company Assumed Restricted Stock Units”) that is outstanding immediately before the Effective Time will be converted as of the Effective Time into a restricted stock unit on the same terms and conditions (including applicable vesting requirements but subject to such accelerated vesting, if any, provided to the holder thereof in a plan set forth on Section 5.9(c) of the Company Disclosure Schedules (as defined in the Merger Agreement, the “Company Disclosure Schedules”) or a Company Employee Agreement (as defined in the Merger Agreement, a  “Company Employee Agreement”) under the LTIP and award agreement evidencing such Company Assumed Restricted Stock Unit, in respect of the number of shares of common stock, par value $1.00, of Jacobs (the “Jacobs Shares”) that is equal to the number of Shares subject to the Company Assumed Restricted Stock Unit immediately prior to the Effective Time multiplied by the Assumed Equity Award Exchange Ratio (as defined in the Merger Agreement, the “Assumed Equity Award Exchange Ratio”) (rounded to the nearest whole share). 

 

2.2Company Assumed Performance Stock Units.  Immediately prior to the Effective Time, each Award in the form of a performance stock unit granted after February 28, 2017 under the LTIP in respect of Shares and held by an employee of the Company 

 

Exhibit 10.3

who continues to be employed by Jacobs and its subsidiaries (the “Company Assumed Performance Stock Units”) that is outstanding immediately before the Effective Time will be converted as of the Effective Time into a time-based restricted stock unit on the same terms and conditions under the LTIP and award agreement evidencing such Company Assumed Performance Stock Unit (with vesting to occur in substantially equal installments on each of the first three anniversaries of the original date of grant of the related Company Assumed Performance Stock Units, subject to such accelerated vesting, if any, provided to the holder thereof in a plan set forth on Section 5.9(c) of the Company Disclosure Schedules or a Company Employment Agreement), in respect of the number of Jacobs Shares that is equal to the number of Shares that would have vested at the end of the performance period if target performance had been achieved immediately prior to the Effective Time multiplied by the Assumed Equity Award Exchange Ratio (rounded to the nearest whole share).

 

 

 

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Jacobs Engineering Group Inc.
	
Exhibit 10.4

	
Restricted Stock Unit Agreement 
	
 

	
Page 1 of 9
	
 

 

JACOBS ENGINEERING GROUP INC. 
FORM OF RESTRICTED STOCK UNIT AGREEMENT 
(Performance Shares - Earnings Per Share Growth) 

 (Awarded Pursuant to the 1999 Stock Incentive Plan, as Amended and Restated) 

This Agreement is executed as of ______________, by and between JACOBS ENGINEERING GROUP INC. (the “Company”) and ______________ (“Employee”) pursuant to the Jacobs Engineering Group Inc. 1999 Stock Incentive Plan (the “Plan”).  Unless the context clearly indicates otherwise, all terms defined in the Plan and used in this Agreement (whether or not capitalized) have the meanings as set forth in the Plan. 

1.Restricted Stock Units

Pursuant to the Plan, and in consideration for services rendered to the Company or Related Company or for their benefit, the Company hereby issues, as of the above date (the “Award Date”) to Employee an award of Restricted Stock Units in accordance with the Plan and the terms and conditions of this Agreement (the “Award”).  The target number of Restricted Stock Units Employee is eligible to earn under this Agreement is ______________ (the “Target Earnings Per Share Growth Restricted Stock Units”).  Each Restricted Stock Unit represents the right to receive one share of Jacobs Common Stock (subject to adjustment pursuant to the Plan) in accordance with the terms and subject to the conditions (including the vesting conditions) set forth in this Agreement and the Plan.  If, with respect to the Restricted Stock Units, the Employee has made an effective and operative deferral election (“EDP Deferral Election”) under the Jacobs Engineering Group Inc. Executive Deferral Plan (“EDP”) with respect to the shares underlying this Agreement, the terms of the EDP and EDP Deferral Election governing the time and delivery of the shares underlying this Agreement that become vested, if any, are incorporated by reference herein. 

2.Vesting and Distribution

	
 
	
(a)
	
The Award shall not be vested as of the Award Date and shall be forfeitable by Employee without consideration or compensation unless and until otherwise vested pursuant to the terms of this Agreement. 

	
 
	
(b)
	
The number of Restricted Stock Units earned under this Agreement shall be equal to the sum of the following (the “Earned Earnings Per Share Growth Restricted Stock Units”):

	
 
	
1.
	
An amount, not less than zero, equal to one-third of the Target Earnings Per Share Growth Restricted Stock Units multiplied by the Earnings Per Share Growth Performance Multiplier (as defined herein) determined based upon the growth in the Company's Earnings Per Share (as defined herein) from fiscal year 2017 to fiscal year 2018; plus

	
 
	
2.
	
An amount, not less than zero, equal to (A) two-thirds of the Target Earnings Per Share Growth Restricted Stock Units multiplied by the Earnings Per Share Growth Performance Multiplier determined based upon the average growth in the Company's Earnings Per Share in fiscal years 2018 and 2019 as compared to fiscal year 2017 minus (B) the amount determined pursuant to Section 2(b)(1) above; plus

LEGAL_US_W # 91675476.11

 
 

	
Jacobs Engineering Group Inc.
	
Exhibit 10.4

	
Restricted Stock Unit Agreement 
	
 

	
Page 2 of 9
	
 

 

	
 
	
3.
	
An amount, not less than zero, equal to (A) the Target Earnings Per Share Growth Restricted Stock Units multiplied by the Earnings Per Share Growth Performance Multiplier determined based upon the average growth in the Company's Earnings Per Share in fiscal years 2018, 2019, and 2020 as compared to fiscal year 2017 minus (B) the amount determined pursuant to Sections 2(b)(1) and 2(b)(2) above.

The Earnings Per Share Growth Performance Multiplier for purposes of the above calculations will be determined by reference to the following tables based upon the average growth in the Company's Earnings Per Share over the indicated fiscal periods:

From Fiscal Year 2017 to Fiscal Year 2018

		
	
Average Earnings Per Share Growth
	
Earnings Per Share Growth Performance Multiplier

	
Less than 10.7%
	
0

	
15.7%
	
100%

	
20.7%
	
200%

From Fiscal Year 2017 to Fiscal Year 2019

		
	
Average Earnings Per Share Growth
	
Earnings Per Share Growth Performance Multiplier

	
Less than 12.1%
	
0

	
15.6%
	
100%

	
19.1%
	
200%

From Fiscal Year 2017 to Fiscal Year 2020

		
	
Average Earnings Per Share Growth
	
Earnings Per Share Growth Performance Multiplier

	
Less than 11.7%
	
0

	
13.7%
	
100%

	
15.7%
	
200%

The Earnings Per Share Growth Performance Multiplier will be determined using straight-line interpolation based on the actual average growth in Earnings Per Share other than those listed in the charts above. 

For purposes of this Section 2(b), “Earnings Per Share” for any fiscal period is computed by dividing Net Earnings by the weighted average number of shares of the Company’s common stock outstanding during the period.  “Net Earnings” means the net earnings attributable to the Company as reported in its consolidated financial statements for such period determined in accordance with accounting principles generally accepted in the United States (“GAAP”) (A) as 

LEGAL_US_W # 91675476.11

 
 

	
Jacobs Engineering Group Inc.
	
Exhibit 10.4

	
Restricted Stock Unit Agreement 
	
 

	
Page 3 of 9
	
 

 

may be adjusted to eliminate the effects of (i) costs associated with restructuring activities, as determined in accordance with GAAP, regardless of whether the Company discloses publicly the amount of such restructuring costs or the fact that the Company engaged in restructuring activities during the periods restructuring costs were incurred; and (ii) gains or losses associated with discontinued operations, as determined in accordance with GAAP, but limited to the first reporting period an operation is determined to be discontinued and all subsequent periods (i.e., there will be no retroactive application of this adjustment); and (B) as adjusted for all gains or losses associated with events or transactions that the Committee has made a finding are unusual in nature, infrequently occurring and otherwise not indicative of the Company’s normal operations, and therefore, not indicative of the underlying Company performance.  For purposes of this part (B), such events or transactions could include: (i) settlements of claims and litigation; (ii) disposals of operations including a disposition of a significant amount of the Company’s assets; (iii) losses on sales of investments; and (iv) changes in laws and/or regulations.

	
 
	
(c)
	
After the Award Date, a number of Restricted Stock Units equal to the Earned Earnings Per Share Growth Restricted Stock Units will become 100% vested (referred to as “Vested Units”) on the third anniversary of the Award Date (the “Maturity Date”), provided that, except as provided in Section 2(d) below, Employee remains continuously employed by the Company or Related Company through such Maturity Date.

	
 
	
(d)
	
Notwithstanding anything in this Agreement or Schedule B of the Plan to the contrary, in the event that Employee’s employment with the Company or Related Company terminates prior to the Maturity Date as a result of (i) Employee’s Retirement, or (ii) Employee’s involuntary termination by the Company or Related Company for any reason other than for Cause, death, or Disability, this Award shall remain outstanding and shall vest on the Maturity Date (based on actual performance through the entire performance period); provided, that on the Maturity Date only a pro-rated portion (based on the number of days, during the period between the Award Date and the Maturity Date, that Employee was employed by the Company or Related Company prior to Employee’s Retirement or involuntary termination by the Company or Related Company for any reason other than for Cause, death, or Disability) of the Earned Earnings Per Share Growth Restricted Stock Units will become vested, with the remainder of the Award forfeited at that time.  

	
 
	
(e)
	
Notwithstanding anything in this Agreement or Schedule B of the Plan to the contrary, in the event of a Change in Control, the number of Earned Earnings Per Share Growth Restricted Stock Units shall be determined as of the date such Change in Control is consummated, rather than the Maturity Date, with the number of Earned Earnings Per Share Growth Restricted Stock Units determined as set forth in Section 2(b) hereof, except that: (1) if the Change in Control occurs prior to the last day of fiscal year 2018, the Earnings Per Share Growth Performance Multiplier will be 100%; and (2) if the Change in Control occurs upon or after the last day of fiscal year 2018, the number of Earned Earnings Per Share Growth Restricted Stock Units will be determined pursuant to Section 2(b) based upon performance through the last day of the fiscal year immediately 

LEGAL_US_W # 91675476.11

 
 

	
Jacobs Engineering Group Inc.
	
Exhibit 10.4

	
Restricted Stock Unit Agreement 
	
 

	
Page 4 of 9
	
 

 

	
 
		
preceding or coinciding with the date of the Change in Control, plus an additional number of Restricted Stock Units, not less than zero, equal to (A) the Target Earnings Per Share Growth Restricted Stock Units multiplied by the Earnings Per Share Growth Performance Multiplier determined based upon the average annual growth in the Company's Earnings Per Share through the end of the last fiscal quarter completed on or prior to the date of the Change in Control, minus (B) the amount determined pursuant to Section 2(b) based upon performance through the last day of the fiscal year immediately preceding or coinciding with the date of the Change in Control. 

Following a Change in Control, except as otherwise set forth in the Plan (including Schedule B thereof), the Earned Earnings Per Share Growth Restricted Stock Units shall remain outstanding and subject to the terms and conditions of the Plan and this Agreement, including the vesting condition of continued employment through the Maturity Date.

	
 
	
(f)
	
Except as set forth herein and in the Plan (including Schedule B thereof the terms of which shall apply to the Award), Employee has no rights, partial or otherwise, in the Award and/or any shares of Jacobs Common Stock subject thereto, unless and until the Award has been earned and vested pursuant to this Section 2. 

	
 
	
(g)
	
Each Vested Unit shall be settled by the delivery of one share of Common Stock (subject to adjustment under the Plan), unless the Committee elects to settle the Vested Unit in another form of consideration of equivalent value (as determined by the Committee in its sole discretion) in connection with or following a Change in Control. If the Employee has not made any EDP Deferral Election with respect to Restricted Stock Units that become vested, settlement will occur as soon as practicable following certification by the Company of the number of Earnings Per Share Growth Restricted Stock Units and passage of the Maturity Date (or, if earlier, the date the Award becomes vested pursuant to the terms of the Plan, including Schedule B thereof, or Section 2(d) above), but in no event later than 30 days following the Maturity Date (or such earlier date that the Award becomes vested).  If the Employee has made an EDP Deferral Election, deferred Vested Units shall be settled as soon as practicable following the date elected on the Employee’s operative EDP Deferral Election or other settlement date set forth under the terms of the EDP.  In any event, no fractional shares shall be issued pursuant to this Agreement.

	
 
	
(h)
	
Neither the Award, nor any interest therein nor shares of Jacobs Common Stock payable in respect thereof may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily.

3.Section 409A Compliance

Notwithstanding any other provision of the Plan or this Agreement to the contrary, the Plan and this Agreement shall be construed or deemed to be amended as necessary to comply with the requirements of Section 409A of the Code, to avoid the imposition of any additional or accelerated taxes or other penalties under Section 409A of the Code. The Committee, in its sole 

LEGAL_US_W # 91675476.11

 
 

	
Jacobs Engineering Group Inc.
	
Exhibit 10.4

	
Restricted Stock Unit Agreement 
	
 

	
Page 5 of 9
	
 

 

discretion, shall determine the requirements of Section 409A of the Code applicable to the Plan and this Agreement and shall interpret the terms of each consistently therewith.  Under no circumstances, however, shall the Company have any liability under the Plan or this Agreement for any taxes, penalties or interest due on amounts paid or payable pursuant to the Plan and/or this Agreement or any EDP Deferral Election, including any taxes, penalties or interest imposed under Section 409A of the Code.

4.Status of Participant

Except as set forth in this section, Employee shall have no rights as a stockholder (including, without limitation, any voting rights or rights to receive dividends with respect to the shares of Jacobs Common Stock subject to the Award) with respect to either the Award granted hereunder or the shares of Jacobs Common Stock underlying the Award, unless and until such shares are issued in respect of Vested Units, and then only to the extent of such issued shares.

Notwithstanding the foregoing, the Employee is entitled to a “Dividend Equivalent Right” under the EDP with respect to each Vested Unit for which delivery of the underlying share of Common Stock has been deferred pursuant to an EDP Deferral Election, to the extent the Company pays any cash dividend with respect to outstanding Jacobs Common Stock while such Vested Unit remains outstanding. The term “Dividend Equivalent Right” shall mean a dollar amount equal to the per-share cash dividend paid by the Company.  Any Dividend Equivalent Right will be subject to the same payment and other terms and conditions (including, if applicable, the terms of the EDP and EDP Deferral Election) as the Vested Unit to which it relates.  

Except as otherwise provided under the terms of the EDP or EDP Deferral Election, if applicable: (a) any vested Dividend Equivalent Right will be paid to the Employee in cash at the same time the underlying share of Common Stock is delivered to the Employee; and (b) the Employee will not be credited with Dividend Equivalent Rights with respect to any Restricted Stock Unit that, as of the record date for the relevant dividend, is no longer outstanding for any reason (e.g., because it has been settled in Common Stock or has been terminated), and the Employee will not be entitled to any payment for Dividend Equivalent Rights with respect to any Restricted Stock Unit that terminates without vesting.  For purposes of this Agreement, a Vested Unit that has not yet been settled (e.g., because of an EDP Deferral Election) shall be considered outstanding for purposes of this Section 4.

No shares may be issued in respect of Vested Units 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 the issuance of shares, Employee shall take all such action as counsel may advise is necessary for Employee to take to meet such requirements.

 

5.Nature of Award

In accepting the Award, Employee acknowledges, understands and agrees that:

	
 
	
(a)
	
The Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;

LEGAL_US_W # 91675476.11

 
 

	
Jacobs Engineering Group Inc.
	
Exhibit 10.4

	
Restricted Stock Unit Agreement 
	
 

	
Page 6 of 9
	
 

 

	
 
	
(b)
	
The Award of the Restricted Stock Units hereunder is voluntary and occasional and does not create any contractual or other right to receive future Awards of Restricted Stock Units, or any benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been awarded in the past; 

	
 
	
(c)
	
All decisions with respect to future Restricted Stock Unit or other awards, if any, will be at the sole discretion of the Company; 

	
 
	
(d)
	
The Award and Employee's participation in the Plan shall not create a right to employment or be interpreted as forming an employment or services contract with the Company, or any Related Companies and shall not interfere with the ability of the Company, or any Related Company, as applicable, to terminate Employee's employment or service relationship (if any); 

	
 
	
(e)
	
The Award and the shares of Jacobs Common Stock subject to the Award, the value of same, and any ultimate gain, loss, income or expense associated with the Award are not part of Employee's normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; 

	
 
	
(f)
	
No claim or entitlement to compensation or damages shall arise from forfeiture of the Award for any reason, including forfeiture resulting from Employee ceasing to provide employment or other services to the Company or any Related Company (for any reason whatsoever whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Employee is employed or the terms of Employee's employment agreement, if any), and in consideration of the Award to which Employee is otherwise not entitled, Employee irrevocably agrees never to institute or allow to be instituted on his or her behalf any claim against the Company or any of its Related Companies, waives his or her ability, if any, to bring any such claim, and releases the Company and any Related Companies from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Employee shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim.

6.Data Privacy

Employee understands that the Company and/or a Related Company may hold certain personal information about the Employee in connection with this Agreement (including the terms of the EDP and EDP Deferral Election to the extent applicable under Section 1), including, but not limited to, Employee's name, home address and telephone number, date of birth, social security number or other identification number, salary, nationality, job title, any shares of Jacobs Common Stock or directorships held in the Company, details of all Awards or any other entitlement to shares of Jacobs Common Stock awarded, canceled, exercised, vested, unvested or outstanding in Employee's favor, for the exclusive purpose of implementing, administering and managing the Plan and this Agreement (“Data”). 

LEGAL_US_W # 91675476.11

 
 

	
Jacobs Engineering Group Inc.
	
Exhibit 10.4

	
Restricted Stock Unit Agreement 
	
 

	
Page 7 of 9
	
 

 

Employee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Employee's personal Data by and among, as applicable, the Company and its Related Companies for the exclusive purpose of implementing, administering and managing Employee's participation in the Plan and under this Agreement.

Employee understands that Data will be transferred to the Company's broker, administrative agents or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan.  Employee understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients' country or countries in which such recipients reside or operate (e.g., the United States) may have different data privacy laws and protections than Employee's country.  Employee understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative.  Employee understands that Data will be held only as long as is necessary to implement, administer and manage Employee's participation in the Plan and this Agreement or as required under applicable law. 

7.Payment of Withholding Taxes

Employee acknowledges that, regardless of any action taken by the Company or Related Companies or, if different, Employee’s employer (the “Employer”) the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Employee’s participation in the Plan and legally applicable to Employee or deemed by the Company, Related Company or the Employer in its discretion to be an appropriate charge to Employee even if legally applicable to the Company, Related Company or the Employer (“Tax-Related Items”), is and remains Employee’s responsibility and may exceed the amount actually withheld by the Company, Related Company or the Employer.  Employee further acknowledges and agrees that the Company or Related Company and/or the Employer may, if it so determines, offset any Employer tax liabilities deemed applicable to Employee by reducing the shares of Jacobs Common Stock otherwise deliverable to Employee pursuant to this Agreement.  Employee further acknowledges that the Company, Related Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Restricted Stock Units including, but not limited to, the grant, vesting or settlement of the Restricted Stock Units, the subsequent sale of shares of Jacobs Common Stock acquired pursuant to such settlement; and (2) do not commit to and are under no obligation to structure the terms of the Award or any aspect of the Restricted Stock Units to reduce or eliminate Employee’s liability for Tax-Related Items or achieve any particular tax result.  Further, if Employee is subject to Tax-Related Items in more than one jurisdiction between the Award Date and the date of any relevant taxable or tax withholding event, as applicable, Employee acknowledges that the Company, Related Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  The Company may refuse to issue or deliver any shares of Jacobs Common Stock to the Employee until the obligation for any Tax-Related Items due in connection with the Award has been satisfied.  

Under no circumstances can the Company be required to withhold from the shares of Jacobs Common Stock that would otherwise be delivered to Employee upon settlement of the Award a number of shares having a total Fair Market Value that exceeds the amount of withholding taxes as determined by the Company at the time the Award vests. 

LEGAL_US_W # 91675476.11

 
 

	
Jacobs Engineering Group Inc.
	
Exhibit 10.4

	
Restricted Stock Unit Agreement 
	
 

	
Page 8 of 9
	
 

 

8.Services as Employee

Except as expressly provided in Section 2(d), the rights granted to Employee under this Agreement are conditioned upon the agreement of Employee to continue in the employ of the Company or of a Related Company through the Maturity Date, and Employee hereby agrees and further agrees to render his or her services for such period for such reasonable compensation as the Company or Related Company may determine.

Employee shall not be deemed to have ceased to be employed by the Company (or any Related Company) for purposes of this Agreement by reason of Employee’s transfer to a Related Company (or to the Company or to another Related Company).  The Committee may determine that, for purposes of this Agreement, Employee shall be considered as still in the employ of the Company or of the Related Company while on leave of absence. 

Nothing contained in this Agreement or the Plan constitutes an employment or service commitment by the Company or any Related Company, affects the Employee's status as an employee at will who is subject to termination without cause, confers upon the Employee any right to remain employed by or in service to the Company or any Related Company, interferes in any way with the right of the Company or any Related Company, as applicable, at any time to terminate such employment or services, or affects the right of the Company or any Related Company, as applicable, to increase or decrease the Employee's other compensation or benefits.  Nothing in this paragraph, however, is intended to adversely affect any independent contractual right of the Employee without his or her consent thereto.

9.Miscellaneous Provisions

This Agreement is governed in all respects 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.  Subject to the limitations of the Plan, the Company may, with the written consent of Employee, amend this Agreement.  This Agreement shall be construed, administered and enforced according to the laws of the State of California. 

10.Clawback

Employee agrees that if Employee is or becomes a Section 16 executive officer of the Company, in the event of any Inaccurate Financial Statement, Employee will return to the Company on demand all incentive-based compensation payments (whether under this Award, the Plan or otherwise) made to Employee during the 3-year period preceding the date on which the Company is required to prepare an accounting restatement that are in excess of what would have been paid had such incentive-based compensation instead been determined under the accounting restatement (the “Payments”).  In addition, Employee agrees to application of any clawback, forfeiture, recoupment, or similar requirement required to apply to incentive-based compensation granted to Employee under any current or future applicable law or listing standard or regulatory body requirement.  An “Inaccurate Financial Statement” is any inaccurate financial statement due to material noncompliance by the Company with any financial reporting requirements under the securities laws.

11.Agreement of Employee

LEGAL_US_W # 91675476.11

 
 

	
Jacobs Engineering Group Inc.
	
Exhibit 10.4

	
Restricted Stock Unit Agreement 
	
 

	
Page 9 of 9
	
 

 

By signing below or electronically accepting this Award, Employee (1) agrees to the terms and conditions of this Agreement, (2) confirms receipt of a copy of the Plan and all amendments and supplements thereto, and (3) appoints the officers of the Company as Employee's true and lawful attorney-in-fact, with full power of substitution in the premises, granting to each full power and authority to do and perform any and every act whatsoever requisite, necessary, or proper to be done, on behalf of Employee which, in the opinion of such attorney-in-fact, is necessary or prudent to effect the forfeiture of the Award to the Company, or the delivery of the Jacobs Common Stock to Employee, in accordance with the terms and conditions of this Agreement. 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set forth above. 

 

JACOBS ENGINEERING GROUP INC.

By: 

  

LEGAL_US_W # 91675476.11

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