Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT is made and entered into this 1th
day of July, 2015 by and between Kiwa Bio-tech Products Group Corp., a Delaware corporation having its principal place of business
at 310 N. Indian Hill Blvd., #702 Claremont, California and Jimmy Ji Zhou, an individual, whose address is 3422 E. Temple Way West
Covina, CA 91791 (“Executive”), with reference to the following facts:

RECITALS

 

WHEREAS, Company is primarily engaged in the business of developing,
manufacturing, distributing and marketing innovative, cost-effective and environmentally safe bio-technological products for the
agricultural, stockbreeding, natural resources and environmental protection markets, primarily in China; and

 

WHEREAS, Company desires to employ Executive and to ensure the
continued availability to Company of Executive’s services, and Executive desires to accept such employment from Company and
render such services, all in accordance with and subject to the terms and conditions herein set forth;

 

NOW, THEREFORE, in consideration of the promises and of the
mutual covenants contained herein, and for other good and valuable consideration, receipt of which is hereby acknowledged, Company
and Executive do hereby agree as follows:

 

AGREEMENT

 

1. Term of Employment.

 

1.01.      Specified Term. Company
employs Executive, and Executive accepts employment with Company, for a period of 3 years beginning on July 1, 2015, and ending
on July 1, 2018.

 

1.02.      Earlier Termination. This
Agreement may be terminated earlier as hereinafter provided.

 

1.03.      Continuing Effect.  Notwithstanding
any termination of this Agreement except for termination under Sections 8.01 and 8.02, at the end of the Term or otherwise, the
provisions of Sections 2.04(b) and 2.07 shall remain in full force and effect and the provisions of Section 2.07shall be binding
upon the legal representatives, successors and assigns of the Executive.

 

1.04.      “Employment Term”
Defined. “Employment term” refers to the entire period of employment of Executive by Company, whether for the periods
provided above, or whether terminated earlier as hereinafter provided or extended by mutual Agreement between Company and Executive.

 

 

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2.           Duties and Obligations of Executive.

 

2.01.      General Duties. Executive
shall serve as the President, Chief Executive Officer (CEO) and Interim Chief Financial Officer (CFO) of Kiwa Bio-Tech Products
Group, Corp. (“Kiwa Bio-Tech”). In his capacity as President, CEO and CFO of Kiwa Bio-Tech, Executive shall do and
perform all services, acts, or things necessary or advisable to manage and conduct the business of Company, including the hiring
and firing of all employees and officers of Company, subject at all times to the policies set by Company’s Board of Directors,
and to the consent of the Board when required by the terms of this Agreement.

 

2.02.      Matters Requiring Consent of
Board of Directors. Executive shall not, without specific approval of Company's Board of Directors, do or contract to do any
of the following:

 

(a)   Borrow on behalf of Company in each
transaction an amount in excess of $500,000;

 

(b)   Permit any customer of Company to become
indebted to Company in an amount in excess of $500,000;

 

(c)   Purchase capital equipment for amounts
in excess of the amounts budgeted for expenditure by the Board of Directors;

 

(d)   Sell any single capital asset of Company
having a market value in excess of $300,000 or a total of capital assets during a fiscal year having a market value in excess of
$1,00,000; and

 

(e)   Commit Company to the expenditure of
more than $200,000 in the development and sale of new products or services.

 

2.03.       Devotion
to Company’s Business. 

 

(a)   Executive shall devote his entire productive
time, ability, and attention to the business of Company during the term of this Agreement.

 

(b)   Executive shall not engage in any other
business duties or pursuits whatsoever, or directly or indirectly render any services of a business, commercial, or professional
nature to any other person or organization, whether for compensation or otherwise, without the prior written consent of Company's
Board of Directors. However, the expenditure of reasonable amounts of time for educational, charitable, or professional activities
shall not be deemed a breach of this Agreement if those activities do not materially interfere with the services required under
this Agreement and shall not require the prior written consent of Company's Board of Directors.

 

 

 

 

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Kiwa Bio-Tech

Employment Agreement

President, CEO and CFO

    	 

    	 

    

 

(c)   This Agreement shall not prohibit Executive
from making passive personal investments or conducting private business affairs if those activities do not materially interfere
with the services required under this Agreement. However, Executive shall not directly or indirectly acquire, hold, or retain any
interest in any business competing with or similar in nature to the business of Company.

 

2.04.      Competitive Activities.

 

(a)   During the term of this Agreement Executive
shall not, directly or indirectly, either as an Executive, Company, consultant, agent, principal, partner, stockholder, corporate
officer, director, or in any other individual or representative capacity, engage or participate in any business that is in competition
in any manner whatsoever with the business of Company.

 

(b)   Executive agrees that during the term
of this Agreement and for a period of one year after termination of this Agreement, Executive shall not directly or indirectly
solicit, hire, recruit, or encourage any other Executive of Company to leave Company.

 

2.05.      Uniqueness of Executive’s
Services. Executive represents and agrees that the services to be performed under the terms of this Agreement are of a special,
unique, unusual, extraordinary, and intellectual character that gives them a peculiar value, the loss of which cannot be reasonably
or adequately compensated in damages in an action at law. Executive therefore expressly agrees that Company, in addition to any
other rights or remedies that Company may possess, shall be entitled to injunctive and other equitable relief to prevent or remedy
a breach of this Agreement by Executive.

 

2.06.       Indemnification for Negligence
or Misconduct. Executive shall indemnify and hold Company harmless from all liability for loss, damage, or injury to persons
or property resulting from the negligence or misconduct of Executive.

 

2.07.      Trade Secrets. 

 

(a)    The parties acknowledge and agree
that during the term of this Agreement and in the course of the discharge of his duties hereunder, Executive shall have access
to and become acquainted with financial, personnel, sales, scientific, technical and other information regarding formulas, patterns,
compilations, programs, devices, methods, techniques, operations, plans and processes that are owned by Company, actually or potentially
used in the operation of Company's business, or obtained from third parties under an Agreement of confidentiality, and that such
information constitutes Company's ''trade secrets.''

 

(b)   Executive specifically agrees that
he shall not misuse, misappropriate, or disclose in writing, orally or by electronic means, any trade secrets, directly or indirectly,
to any other person or use them in any way, either during the term of this Agreement or at any other time thereafter, except as
is required in the course of his employment.

 

 

 

 

 

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Employment Agreement

President, CEO and CFO

    	 

    	 

    

 

(c)   Executive acknowledges and agrees that
the sale or unauthorized use or disclosure in writing, orally or by electronic means, of any of Company's trade secrets obtained
by Executive during the course of his employment under this Agreement, including information concerning Company's actual or potential
work, services, or products, the facts that any such work, services, or products are planned, under consideration, or in production,
as well as any descriptions thereof, constitute unfair competition. Executive promises and agrees not to engage in any unfair competition
with Company, either during the term of this Agreement or at any other time thereafter.

 

(d)   Executive further agrees that all
files, records, documents, drawings, specifications, equipment, software, and similar items whether maintained in hard copy or
on line relating to Company's business, whether prepared by Executive or others, are and shall remain exclusively the property
of Company and that they shall be removed from the premises or, if kept on-line, from the computer systems of Company only with
the express prior written consent of Company's Board of Directors.

 

2.08.      Services as Consultant. Following
the employment term or Executive's retirement, and if the employment term has not been terminated for cause, Executive shall make
his advice and counsel available to Company for such a period as the parties may mutually agree to. The parties agree that this
advice and counsel shall not entail full time service and shall be consistent with Executive's retirement status.

 

2.09.      Use of Executive’s Name.

 

(a)    Company shall have the right to use
the name of Executive as part of the trade name or trademark of Company if it should be deemed advisable to do so. Any trade name
or trademark, of which the name of Executive is a part, that is adopted by Company during the employment of Executive may be used
thereafter by Company for as long as Company deems advisable.

 

(b)   Executive shall not, either during
the term of this Agreement or at any time thereafter, use or permit the use of his name in the trade name or trademark of any other
enterprise if that other enterprise is engaged in a business similar in any respect to that conducted by Company, unless that trade
name or trademark clearly indicates that the other enterprise is a separate entity entirely distinct from and not to be confused
with Company and unless that trade name or trademark excludes any words or symbols stating or suggesting prior or current affiliation
or connection by that other enterprise or its Executives with Company.

3.           Obligations of Company.

 

3.01.      General Description. Company
shall provide Executive with the compensation, incentives, benefits, and business expense reimbursement specified elsewhere in
this Agreement.

 

 

 

 

 

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Kiwa Bio-Tech

Employment Agreement

President, CEO and CFO

    	 

    	 

    

 

3.02.      Office and Staff. Company
shall provide Executive with office space, office equipments, and administrative support suitable to Executive's position and adequate
for the performance of his duties.

 

3.03.      Indemnification of Losses of
Executive. Company shall indemnify Executive for all necessary expenditures or losses incurred by Executive in direct consequence
of the discharge of his duties on Company's behalf.

4.           Compensation of Executive. 

 

4.01.       Annual Salary.

 

(a)   As compensation for the services to
be performed hereunder, Executive shall receive a salary at the rate of $84,000 per annum, of which shall be paid in equal monthly
installments of $7,000 during the period of employment, prorated for any partial employment period.

 

(b)   Executive shall receive such annual
increases in salary as may be determined by Company's Board of Directors in its sole discretion at its annual meeting.

 

4.02.       Repayment of Disallowed Salary.
In the event that any portion of the compensation paid by Company to Executive is disallowed as an income tax deduction on
an income tax return of Company, Executive agrees to immediately repay to Company the full amount of that portion.

5.           Executive Incentives. 

 

5.01.       Annual Cash Bonus Based on
Performance. 

 

(a)    If the employment term is terminated
by Company for cause, Executive shall not be entitled to any portion of the annual cash bonus for the fiscal year in which that
termination occurs. However, if this Agreement should expire or be terminated for reasons other than cause, Executive shall be
entitled to a percentage of the annual cash bonus equal to the percentage of the goals and objectives accomplished.

 

(b)   As additional compensation, Company
agrees to grant Executive each year certain number of stock options pursuant to Company’s Stock Incentive Plan and the board
resolutions on stock option allocation plan each fiscal year. All terms and conditions of Company’s Stock Incentive Plan,
including but not limited to option grant, exercise and any other items are applicable for Executive as a plan participant.

 

 

 

 

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Kiwa Bio-Tech

Employment Agreement

President, CEO and CFO

    	 

    	 

    

 

6.           Executive Benefits. 

 

6.01.       Annual Vacation. Executive
shall be entitled to two (2) week vacation time each year with full pay. Executive may be absent from his employment for vacation
only at such times as Company's President shall determine from time to time. If Executive is unable for any reason to take the
total amount of authorized vacation time during any year, he may accrue that time and add it to vacation time for any following
year or may receive a cash payment in an amount equal to the amount of annual salary attributable to that period.

 

6.02.       Illness.  On completion
of one (1) year in the service of Company, Executive shall be entitled to five (5) days per year as sick leave with full pay. Sick
leave may not be accumulated or accrued for any following year.

 

6.03.       Employee Benefit Programs.
Executive is entitled to participate in any pension, 401(k), insurance or other employee benefit plan that is maintained by Company
for its executive officers, including programs of life and medical insurance and reimbursement of membership fees in civic, social
and professional organizations

 

7.           Business
Expenses.

 

 

7.01.       Lump-Sum Entertainment Fund.

 

(a)    It is understood and agreed by the
parties that the services required by Company will require Executive to incur entertainment expenses on behalf of Company. Company
hereby agrees to and shall make available to Executive for this purpose the sum of $50,000 per annum, payable in such amounts and
at such times as Executive shall request.

 

(b)   Executive shall, however, furnish
to Company adequate records and other documentary evidence required by federal and state statutes and regulations for the substantiation
of each such expenditure as an income tax deduction.

 

7.02.       Reimbursement of Other Business
Expenses. 

 

(a)   Company shall promptly reimburse Executive
for all other reasonable business expenses incurred by Executive in connection with the business of Company.

 

(b)    Each such expenditure shall be reimbursable
only if it is of a nature qualifying it as a proper deduction on the federal and state income tax return of Company.

 

(c)   Each such expenditure shall be reimbursable
only if Executive furnishes to Company adequate records and other documentary evidence required by federal and state statutes and
regulations issued by the appropriate taxing authorities for the substantiation of each such expenditure as an income tax deduction.

 

 

 

 

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Employment Agreement

President, CEO and CFO

    	 

    	 

    

 

7.03.       Repayment
of Disallowed Expenses. In the event that any expenses paid for Executive or any reimbursement of expenses paid to Executive
shall, on audit or other examination of Company's income tax returns, be determined not to be allowable deductions from Company's
gross income, and in the further event that this determination shall be acceded to by the Company or made final by the appropriate
federal or state taxing authority or a final judgment of a court of competent jurisdiction, and no appeal is taken from the judgment
or the applicable period for filing notice of appeal has expired, Executive shall repay to Company the full amount of the disallowed
expenses.

8.            Termination of Employment.

 

 

8.01.       Termination for Cause. 

 

(a)    Company reserves the right to terminate
this Agreement if Executive willfully breaches or habitually neglects the duties which he is required to perform under the terms
of this Agreement; or commits such acts of dishonesty, fraud, misrepresentation or other acts of moral turpitude as would prevent
the effective performance of his duties.

 

(b)   Company may at its option terminate
this Agreement for the reasons stated in this Section by giving written notice of termination to Executive without prejudice to
any other remedy to which Company may be entitled either at law, in equity, or under this Agreement.

 

(c)   The notice of termination required
by this section shall specify the ground for the termination and shall be supported by a statement of all relevant facts.

 

(d)   Termination under this section shall
be considered ''for cause'' for the purposes of this Agreement.

 

8.02.       Failure to Meet Profit Standard.

 

(a)    If the net operating profits of Company
for any annual accounting period of Company shall be less than the net operating profits in the previous fiscal year by 20% percent,
Company at its option may terminate this Agreement by giving written notice of termination to Executive.

 

(b)   The term ''net operating profits,''
as used herein, means the net operating profits after taxes as determined and certified by the independent certified public accountants
regularly retained by Company in accordance with sound accounting principles and in accordance with the past accounting practices
of Company.

 

(c)    Termination under this section shall
be considered ''for cause'' for the purposes of this Agreement.

 

 

 

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Kiwa Bio-Tech

Employment Agreement

President, CEO and CFO

    	 

    	 

    

 

8.03.       Termination Without Cause. 

 

(a)   This Agreement shall be terminated
upon the death of Executive.

 

(b)    Company reserves the right to terminate
this Agreement not less than six (6) months after Executive suffers any physical or mental disability that would prevent the performance
of his essential job duties under this Agreement, unless reasonable accommodation can be made to allow Executive to continue working.
Such a termination shall be effected by giving twenty (20) days' written notice of termination to Executive. Termination pursuant
to this provision shall not prejudice Executive's rights to continued compensation pursuant to Section 4.02 of this Agreement.

 

(c)   Termination under this section shall
not be considered ''for cause'' for the purposes of this Agreement.

 

8.04.       Effect of Merger, Transfer
of Assets, or Dissolution. 

 

(a)   This Agreement shall not be terminated
by any voluntary or involuntary dissolution of Company resulting from either a merger or consolidation in which Company is not
the consolidated or surviving corporation, or a transfer of all or substantially all of the assets of Company.

 

(b)    In the event of any such merger or
consolidation or transfer of assets, Company's rights, benefits, and obligations hereunder shall be assigned to the surviving or
resulting corporation or the transferee of Company's assets.

 

8.05.       Termination by Executive. Executive
may terminate his obligations under this Agreement by giving Company at least three (3) months notice in advance.

9.           General Provisions. 

 

9.01.       Notices.  Notices and Addresses.
All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently
given if delivered to the addressees in person, by Federal Express or similar receipted delivery, by facsimile delivery or, if
mailed, postage prepaid, by certified mail, return receipt requested, as follows:

 

	To Company:	 	Kiwa Bio-Tech Products Group, Corp.
	 	 	310 N. Indian Hill Blvd., #702
	 	 	Claremont, California
	 	 	 
	 	 	 
	 	 	 
	To Executive:	 	Jimmy Ji Zhou
	 	 	3422 E. Temple Way
	 	 	West Covina, CA 91791

 

 

 

 

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President, CEO and CFO

    	 

    	 

    

 

or to such other address as either of them, by notice to the
other may designate from time to time. The transmission confirmation receipt from the sender's facsimile machine shall be evidence
of successful facsimile delivery. Time shall be counted to, or from, as the case may be, the delivery in person or by mailing

 

9.02.      Attorneys' Fees and Costs.
If any legal action is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled
to reasonable attorneys' fees, costs, and necessary disbursements in addition to any other relief to which that party may be entitled.
This provision shall be construed as applicable to the entire Agreement.

 

9.03.      Modifications.  Any modification
of this Agreement will be effective only if it is in writing signed by the party to be charged.

 

9.04.      Effect of Waiver. The failure
of either party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other party
shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power
at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

 

9.05.      Partial Invalidity. If
any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining
provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

 

9.06.      Law Governing Agreement. This
Agreement shall be governed by and construed in accordance with the laws of the State of California.

 

9.07.      Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument. The execution of this Agreement may be by actual or facsimile signature.

 

9.08.      Additional Documents. The
parties hereto shall execute such additional instruments as may be reasonably required by their counsel in order to carry out the
purpose and intent of this Agreement and to fulfill the obligations of the parties hereunder.

 

9.09.      Section and Paragraph Headings.
The section and paragraph headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation
of this Agreement.

 

9.10.      Arbitration. Except
for a claim for equitable relief, any controversy, dispute or claim arising out of or relating to this Agreement, or its
interpretation, application, implementation, breach or enforcement which the parties are unable to resolve by mutual
agreement, shall be settled by submission by either party of the controversy, claim or dispute to binding arbitration in Los
Angeles County, California (unless the parties agree in writing to a different location), before three arbitrators in
accordance with the rules of the American Arbitration Association then in effect. In any such arbitration proceeding the
parties agree to provide all discovery deemed necessary by the arbitrators. The decision and award made by the arbitrators
shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be entered thereon in any
court having jurisdiction thereof.

 

 

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Employment Agreement

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9.11.      Entire Agreement. This
Agreement supersedes any and all other Agreements, either oral or in writing, between the parties hereto with respect to the employment
of Executive by Company, and contains all of the covenants and Agreements between the parties with respect to that employment in
any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises, or Agreements,
orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that
no other Agreement, statement, or promise not contained in this Agreement shall be valid or binding.

IN WITNESS WHEREOF, Company and Executive have executed this Agreement as of the date and year first above written.

 

 

	COMPANY:	 	EXECUTIVE:	 
	Kiwa Bio-Tech Products Group Corp.	 	Jimmy Ji Zhou	 
	 	 	 	 
	/s/Yvonne Wang	 	/s/Jimmy Ji Zhou	 
	(Authorized Signature)	 	(Signature)	 
	 	 	 	 
	Yvonne Wang, Secretary	 	7/1/15	 
	(Print Name and Title)	 	(Date)	 
	 	 	 	 
	7/1/15	 	 	 
	(Date)	 	 	 

 

 

 

 

 

 

 

 

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Kiwa Bio-Tech

Employment Agreement

President, CEO and CFOEX10.1 Nonqualified Stock Option Agreement

JACOBS ENGINEERING GROUP INC.

NONQUALIFIED STOCK OPTION AGREEMENT

(1999 Stock Incentive Plan)

This Agreement is executed on ________ _____, 20__, 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.

    

Jacobs Engineering Group Inc.
Nonqualified Stock Option Agreement (1999 Stock Incentive Plan)
Page 2 of 5

(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.    Data Privacy

Optionee understands that the Company and/or a Related Company may hold certain personal information about the Optionee, including, but not limited to, Optionee’s name, home address and telephone number, date of birth, social insurance 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 Optionee’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.  

Optionee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Data as described in this Agreement and any other Award materials by and among, as applicable, the Company and its Related Companies for the exclusive purpose of implementing, administering and managing Optionee’s participation in the Plan.
Optionee understands that Data will be transferred to the Company’s broker, administrative agents and such other stock plan service provider as may be selected by the Company which are assisting the Company with the implementation, administration and management of the Plan.  Optionee understands that such recipients may be located in the United States or elsewhere, and that the country or countries in which such recipients reside or operate (e.g., the United States) may 
Jacobs Engineering Group Inc.
Nonqualified Stock Option Agreement (1999 Stock Incentive Plan)

    

Page 3 of 5

have different data privacy laws and protections than Optionee’s country.  Optionee 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.  Optionee understands that Data will be held only as long as is necessary to implement, administer and manage Optionee’s participation in the Plan.

5.    Withholding Taxes

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

(i) withholding from Optionee's wages/salary or other cash compensation paid to the Optionee by the Company, Related Company or the Employer; or 
(ii) withholding from proceeds of the shares of Jacobs Common Stock acquired upon exercise of the Option either through a voluntary sale or through a mandatory sale arranged by the Company's broker (on Optionee's behalf pursuant to this authorization); or 
(iii) withholding in Stock to be transferred upon exercise of the Option. 

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

    

Jacobs Engineering Group Inc.
Nonqualified Stock Option Agreement (1999 Stock Incentive Plan)
Page 4 of 5

6.     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.

7.     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).

8.    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.

9.    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.

    

Jacobs Engineering Group Inc.
Nonqualified Stock Option Agreement (1999 Stock Incentive Plan)
Page 5 of 5

10.    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 Optionee 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.

11.    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.

12.    Certain Conditions To Issue Of Shares

By signing below or electronically accepting this Award, 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:
                                                                                                              
                

       Noel G. Watson, Executive Chairman

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