Squirrel - DB2 : Connection to the data server failed. The IBM Data Server for JDBC and SQLJ license was invalid - db2

I am using squirrel to connect to DB2 database.
I am able to successfully connect to one of our DB2 databases. But when I create a new connection to point to another db2 database, I get the below mentioned error.
java.util.concurrent.ExecutionException: java.lang.RuntimeException: com.ibm.db2.jcc.am.SqlSyntaxErrorException: [jcc]...... Connection to the data server failed. The IBM Data Server for JDBC and SQLJ license was invalid
or was not activated for the DB2 for z/OS subsystem. If you are connecting directly to
the data server and using DB2 Connect Unlimited Edition for System z, perform the
activation step by running the activation program in the license activation kit.
If you are using any other edition of DB2 Connect, obtain the license file,
db2jcc_license_cisuz.jar, from the license activation kit, and follow the installation
directions to include the license file in the class path. ERRORCODE=-4230, SQLSTATE=42968
I also tried to create a new Driver to use in Squirrel, But that too doesnot work.
I have db2jcc_license_cisuz.jar available in the same folder where I pointed my driver jar.
I am really surprised why one connection to DB2 works and the other doesn't work.

db2jcc_license_cisuz.jar must be in CLASSPATH. Check db2jcc_license_cisuz.jar in Java Class Path or Extra Class Path in driver properties.

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When try to connect to DB2 Z/OS, the following error message is displayed,
[jcc][t4][10509][13454][3.67.28] Connection to the data server failed. The IBM Data Server for JDBC and SQLJ license was invalid or was not activated for the DB2 for z/OS subsystem. If you are connecting directly to the data server and using DB2 Connect Unlimited Edition for System z, perform the activation step by running the activation program in the license activation kit. If you are using any other edition of DB2 Connect, obtain the license file, db2jcc_license_cisuz.jar, from the license activation kit, and follow the installation directions to include the license file in the class path. ERRORCODE=-4230, SQLSTATE=42968"
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Start ADStudio and then connect to DB2 z/OS.