Document:

EX-10.7

 Exhibit 10.7 

ENCANA CORPORATION 
 EMPLOYEE STOCK
OPTION PLAN 
 [EXECUTIVE] 20● STOCK OPTION GRANT AGREEMENT

  

			
	Participant:	  	###PARTICIPANT_NAME###
	Grant Name:	  	###GRANT_NAME###
	Grant Date:	  	###GRANT_DATE###
	Expiry Date:	  	###EXPIRY_DATE###, subject to the terms and conditions contained herein
	Grant Price:	  	CDN###GRANT_PRICE###
	Total Options with TSARs:	  	###TOTAL_AWARDS###

 THIS OPTION AND TANDEM STOCK APPRECIATION RIGHTS AGREEMENT including Schedules “A” and “B”
hereto (collectively, this “Agreement”) is made between Encana Corporation (the “Corporation”) and the Participant listed above (the “Participant”), an eligible employee of the Corporation or one of
its Related Corporations. 
 WHEREAS the Corporation has established an Employee Stock Option Plan (the “Plan”) for
employees of the Corporation and its Related Corporations (collectively, the “Affiliated Entities” or, individually, an “Affiliated Entity”); 

AND WHEREAS the Board of Directors of the Corporation (the “Board”) has approved the grant to the Participant under the Plan
of an option to purchase the number of Shares set out above (collectively, the “Options” and individually, an “Option”), upon and subject to the terms and conditions of the Plan and this Agreement; 

NOW THEREFORE in consideration of other good and valuable consideration and the sum of one dollar ($1.00) now paid to the Corporation (the
receipt whereof by the Corporation is hereby acknowledged) it is agreed by and between the parties hereto as follows: 
  

	1.	 DEFINITIONS 

In this Agreement, capitalized terms shall have the meanings set forth in Schedule “A” hereto unless specified. 

 

	2.	 GRANT OF OPTIONS AND TANDEM STOCK APPRECIATION RIGHTS 

Subject to the terms and conditions of the Plan and this Agreement, the Corporation hereby grants the Options to the Participant. Each Option granted,
once vested hereunder, shall entitle the Participant to acquire one Share, subject to and in accordance with the terms and conditions of the Plan and this Agreement. Each Option granted hereunder shall have associated with it a TSAR. Except as
otherwise provided in the Plan or this Agreement, each associated TSAR shall be subject to the same terms and conditions as the Option to which it relates. 
  

	3.	 EVIDENCE OF GRANT AND ACKNOWLEDGEMENT 

This Agreement shall evidence the grant by the Corporation to the Participant of the Options effective as of the Grant Date. 

 The Participant further acknowledges nothing in the Plan or this Agreement shall be construed to require
the Corporation to grant to the Participant an additional option or options beyond the Options granted hereunder. The grant of an additional option or options to the Participant by the Corporation shall, in each case, constitute a new and separate
agreement between the Participant and the Corporation in respect of same. 
  

	4.	 CLASSIFICATION OF OPTIONS 

The Options granted to the Participant hereunder are classified as “Time-Based Options” and shall hereinafter be referred to as
“Time-Based Options”. 
  

	5.	 VESTING OF TIME-BASED OPTIONS 

 

	(a)	 Subject to Section 5(b) and Sections 6 to 11 hereof, Time-Based Options shall become Vested Options as follows:

  

	 	(i)	 30 percent on the first Anniversary Date; 

 

	 	(ii)	 an additional 30 percent on the second Anniversary Date; and 

 

	 	(iii)	 an additional 40 percent on the third Anniversary Date. 

 

	(b)	 The number of Time-Based Options that become Vested Options under Section 5(a) shall be determined by rounding
the result up to the nearest whole number of Time-Based Options, if necessary, to an aggregate maximum of the total number of Time-Based Options granted under this Agreement. No fractional Time-Based Options shall become Vested Options. No cash or
other compensation shall be paid to the Participant at any time in lieu thereof any fractional Time-Based Options. 

  

	(c)	 Subject to Sections 3 and 6 to 11, the Participant shall be entitled to exercise or surrender all or any number of the
Vested Options, in accordance with Section 13, during the period from the Vesting Date of such Vested Option pursuant to Section 5(a) to the Expiry Date, or such earlier termination date as provided herein. 

 

	(d)	 As an alternative to the exercise of a Vested Option, the Participant may surrender any Vested Option as to an
associated TSAR in accordance with Section 13 hereof. Upon surrendering to the Corporation the Vested Options to purchase a specified number of Shares, the Participant shall receive a cash payment equal to the Appreciated Value multiplied by
the number of Vested Options surrendered, less required applicable statutory and other withholdings. Thereafter the number of Vested Options so surrendered with respect to such specified number of Shares will be cancelled and terminated by the
Corporation and the Participant shall have no further right, title or interest in such surrendered Vested Options or the underlying Shares. 

  

	6.	 TERMINATION OF EMPLOYMENT 

 

	(a)	 Upon a Termination of Employment, the Participant shall be entitled to exercise or surrender any Vested Options during
the Termination Exercise Period, but only to the extent such Vested Options have become Vested Options pursuant to Sections 5(a) or 11 on or prior to the Date Employment Ceases. 

 

	(b)	 Notwithstanding Section 5(a), Time-Based Options which do not become Vested Options on or prior to the Date
Employment Ceases shall not thereafter become Vested Options. 

  
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	7.	 DEATH OR RETIREMENT OF PARTICIPANT 

 

	(a)	 In the event the Participant ceases to be an employee of the Corporation or an Affiliated Entity by reason of the
Participant’s death or Retirement on a date prior to the date he or she reaches age 60: 

  

	 	(i)	 the Participant shall be entitled to exercise or surrender any Vested Options during the Death or Retirement Exercise
Period, but only to the extent they have become Vested Options pursuant to Sections 5(a) or 11 on or prior to the date of such death or Date of Retirement, as applicable; and 

 

	 	(ii)	 notwithstanding Section 5(a), Time-Based Options which do not become Vested Options on or prior to the date of
such death or Date of Retirement, as applicable, shall not thereafter become Vested Options. 

  

	(b)	 In the event the Participant ceases to be an employee of the Corporation or an Affiliated Entity by reason of his or
her death or Retirement on a date that occurs on or after the date he or she reaches the age 60, but before age 65, his or her Time-Based Options shall continue to become Vested Options in accordance with the provisions of this Agreement including,
without limitation, Section 5(a), and the Participant shall be entitled to exercise or surrender any such Vested Options until the Expiry Date. 

  

	(c)	 In the event the Participant ceases to be an employee of the Corporation or an Affiliated Entity by reason of his or
her death or Retirement on a date that occurs on or after the date he or she reaches age 65, the Participant shall be entitled, during the period extending from the date of such death or Date of Retirement, as applicable, to the Expiry Date, to
exercise or surrender, in full or in part, any unexercised Time-Based Option (irrespective of whether such Time-Based Option has become a Vested Option in accordance with the provisions of this Agreement including, without limitation
Section 5(a)). 

  

	8.	 DISABILITY OF PARTICIPANT 

In the event of the Participant’s Short-Term Disability or Long-Term Disability, Time-Based Options shall continue to be and become Vested
Options in accordance with the provisions of this Agreement including, without limitation, Section 5(a) and the Participant shall be entitled to exercise or surrender any Vested Options during the period of such Short-Term Disability or
Long-Term Disability and thereafter, unless there occurs a Termination of Employment during such period, in which case the provisions of Section 6 shall apply, or unless the Participant’s death or Retirement occurs during such period, in
which case the provisions of Section 7 shall apply. 
  

	9.	 LEAVES OF ABSENCE AND FAMILY LEAVE 

 

	(a)	 In the event the Participant is on a Paid Leave of Absence or on Family Leave, Time-Based Options shall continue to be
and become Vested Options in accordance with the provisions of this Agreement including, without limitation, Section 5(a), and the Participant shall be entitled to exercise or surrender any Vested Options during the period of such Paid Leave of
Absence or Family Leave and thereafter, unless there occurs a Termination of Employment during such period, in which case the provisions of Section 6 shall apply, or unless the Participant’s death or Retirement occurs during such period,
in which case the provisions of Section 7 shall apply. 

  
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	(b)	 In the event the Participant is on an Unpaid Leave of Absence: 

 

	 	(i)	 Time-Based Options shall continue to be and become Vested Options in accordance with the provisions of
Section 5(a) during the period commencing on the Date of Unpaid Leave of Absence and ending on the 31st calendar day following the Date of Unpaid Leave of Absence, unless there occurs a
Termination of Employment during such period, in which case the provisions of Section 6 shall apply, or unless the Participant’s death or Retirement occurs during such period, in which case the provisions of Section 7 shall apply;

  

	 	(ii)	 notwithstanding Section 5(a), Time-Based Options which do not become Vested Options on or prior to the 31st calendar day following the Date of Unpaid Leave of Absence shall not become Vested Options during the balance of the Participant’s Unpaid Leave of Absence, unless the Participant’s death
or Retirement occurs during such period, in which case the provisions of Section 7 shall apply; 

  

	 	(iii)	 notwithstanding Section 5(a), Time-Based Options which do not become Vested Options on or prior to the 31st calendar day following the Date of Unpaid Leave of Absence shall become Vested Options on the Participant’s Return to Service Date, but only to the extent that such Time-Based Options would
have become Vested Options pursuant to Section 5(a) on or prior to the Return to Service Date if the period of Unpaid Leave of Absence had not occurred and provided that the Return to Service Date occurs prior to the Expiry Date;

  

	 	(iv)	 in the event that the Participant’s Return to Service Date occurs prior to the Expiry Date, any Time-Based
Options which did not become Vested Options on or prior to the 31st calendar day following the Date of Unpaid Leave of Absence or pursuant to Section 9(b)(iii) shall become Vested Options
solely in accordance with the provisions of Section 5(a); and 

  

	 	(v)	 from the Date of Unpaid Leave of Absence until the Expiry Date, the Participant shall be entitled to exercise or
surrender any Vested Options which become Vested Options in accordance with the provisions hereof, unless there occurs a Termination of Employment during such period of Unpaid Leave of Absence, in which case the provisions of Section 6 shall
apply, or unless the Participant’s death or Retirement occurs during such period, in which case the provisions of Section 7 shall apply. 

  

	10.	 FORFEITURE AND TERMINATION OF TIME-BASED OPTIONS 

Except as provided for in Section 11: 
  

	(a)	 Unless previously forfeited in accordance with the provisions hereof, upon the occurrence of a Termination of
Employment, Time-Based Options which have not become Vested Options on or prior to the Date Employment Ceases shall be forfeited by the Participant and shall terminate on the Date Employment Ceases and, thereafter, the Participant will have no
further right, title or interest in such Time-Based Options. 

  

	(b)	 Upon the occurrence of a Termination of Employment, Vested Options which are not exercised or surrendered by the end
of the Termination Exercise Period shall be forfeited by the Participant and shall terminate on the last day of the Termination Exercise Period and, thereafter, the Participant will have no further right, title or interest in such Vested Options.

  
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	(c)	 Where the Participant ceases to be an employee of the Corporation or an Affiliated Entity by reason of the
Participant’s death or Retirement on a date that is prior to the date that the Participant reaches age 60, unless previously forfeited in accordance with the provisions hereof, Time-Based Options which have not become Vested Options on or prior
to the date of death or Date of Retirement, as applicable, shall be forfeited by the Participant and shall terminate on the date of death or Date of Retirement, as applicable, and, thereafter, the Participant will have no further right, title or
interest in such Time-Based Options. 

  

	(d)	 Where the Participant ceases to be an employee of the Corporation or an Affiliated Entity by reason of the
Participant’s death or Retirement on a date that is prior to the date that the Participant reaches age 60, Vested Options which are not exercised or surrendered by the end of the Death or Retirement Exercise Period shall be forfeited by the
Participant and shall terminate on the last day of the Death or Retirement Exercise Period and, thereafter, the Participant will have no further right, title or interest in such Vested Options. 

 

	(e)	 On the Expiry Date, all Time-Based Options which have not been exercised or surrendered or otherwise terminated
pursuant to the provisions hereof shall expire and be of no further force or effect whatsoever. 

  

	(f)	 After the occurrence of any of the events in Sections 10(a) – (e), this Agreement shall terminate and be
of no further force or effect whatsoever with respect to those Time-Based Options which have been forfeited and terminated or have expired and the Participant shall have no cause of action nor make any claim against the Corporation or any Affiliated
Entity for damages or for loss of opportunity arising from the forfeiture and termination or expiry of such Time-Based Options or the termination of this Agreement insofar as it relates to such Time-Based Options pursuant to this Section 10.

  

	11.	 EARLY EXERCISE AND ACCELERATED VESTING 

 

	(a)	 Notwithstanding any other provision of this Agreement, but subject to Section 11(b), the Committee or the Board
may pass a resolution which accelerates the vesting of a Time-Based Option and which permits the Participant to exercise or surrender in full or in part any unexercised Time-Based Option, whether or not the Time-Based Option has otherwise become a
Vested Option, at such time or times and/or in such manner following the passing of such resolution as is specified in the resolution, which resolution may be passed for any reason which, in the sole opinion of the Committee or the Board, warrants
altering the provisions pursuant to which a Time-Based Option vests or is exercisable or can be surrendered upon the occurrence of a Change in Control, including a Take-Over Bid which would, if successful, result in a Change in Control.

  

					
	(b)	 	       (i) 	    	 In the event of a Change in Control, all Time-Based Options granted to the Participant hereunder that are outstanding and are not
Vested Options immediately prior to such Change in Control shall become Vested Options immediately prior to the occurrence of such Change in Control, and the Participant shall be entitled, commencing as of the time immediately prior to the
occurrence of such Change in Control, to exercise in full or in part such Vested Options until the Expiry Date, and Section 11(b)(iii) shall apply, if applicable, except to the extent that an award of Options meeting the requirements set out
below in this Section 11(b)(i) (such award, a “Replacement Award”) is provided to the Participant to replace such award of Time-Based Options (each award of Options intended to be replaced by a Replacement Award, a
“Replaced Award”) effective on or immediately after the time of such Change in Control. An award of options shall meet the requirements of this Section 11(b)(i) (and hence qualify as a Replacement Award) if (A) it has an
intrinsic value equal to the intrinsic value of the Replaced Award as of the

  
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date of the Change in Control, (B) it relates to publicly traded equity securities of the Corporation, the entity surviving the Corporation following the Change in Control or the parent
company of such surviving entity, (C) it contains terms relating to vesting that are substantially identical to those of the Replaced Award, and (D) its other terms and conditions are not less favorable to the Participant than the terms
and conditions of the Replaced Award (including the provisions that would apply in the event of a subsequent Change in Control) as of the date of the Change in Control. Without limiting the generality of the foregoing, a Replacement Award may take
the form of a continuation of the applicable Replaced Award if the requirements of the preceding sentence are satisfied. If a Replacement Award is granted, the Replaced Award shall not immediately vest prior to the occurrence of the Change in
Control giving rise to the replacement. The determination whether the conditions of this Section 11(b)(i) are satisfied shall be made by the Committee, as constituted immediately before the Change in Control, in its sole discretion. All
Time-Based Options that become Vested Options pursuant to this Section 11(b)(i) shall entitle the Participant, commencing as of the time immediately prior to the occurrence of the Change in Control, to exercise or surrender in full or in part
such Vested Options until the Expiry Date. 

  

	 	(ii)	 Notwithstanding any other provision of this Agreement to the contrary, upon the Participant’s Termination of
Employment by the Corporation or an Affiliated Entity, as applicable, without CIC Cause, or by the Participant for Good Reason, within the Specified Period following a Change in Control, the Participant shall be entitled, commencing as of the time
immediately prior to such Termination of Employment, to exercise or surrender in full or in part any unexercised Time-Based Option (irrespective of whether such Time-Based Option has become a Vested Option in accordance with Section 5(a)) or
Replacement Award, as applicable, until the Expiry Date. 

  

	 	(iii)	 If a “take-over bid” (within the meaning of applicable securities legislation) made by any person for the
voting securities of the Corporation (a “Take-over Bid”) would, if successful, result in a Change in Control, and if a Replacement Award is not granted in accordance with Section 11(b)(i), then: 

 

	 	(A)	 the Corporation will promptly notify the Participant of the Take-over Bid and the Participant’s rights under this
Section 11(b)(iii); 

  

	 	(B)	 vesting of all Time-Based Options that have not yet become Vested Options pursuant to Section 5(a) at the time a
formal Take-over Bid offer has been made will be accelerated so as to be and become Vested Options (irrespective of whether such Time-Based Options have become Vested Options in accordance with Section 5(a)) on the date the formal Take-over Bid
offer is made; 

  

	 	(C)	 the Participant shall be entitled to exercise, in full or in part, the Time-Based Options in the manner set out in
this Agreement, with any necessary modifications (or such other manner as may be prescribed by the Committee or the Board including, but not limited to, a form of cashless exercise), during the period ending on the earlier of the expiration of the
Take-over Bid and the Expiry Date, for the purpose of tendering the Shares acquired pursuant to the exercise of the Time-Based Options to the Take-over Bid; 

  

	 	(D)	 the Participant shall be entitled to deal with the Time-Based Options in such other manner (in addition to the
exercise set out in paragraph 11(b)(iii)(C)) as may be prescribed by the Committee or the Board, in its discretion; and 

  
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	 	(E)	 if the Shares acquired pursuant to the exercise of the Time-Based Options are not deposited by the Participant
pursuant to the Take-over Bid or, if deposited, are subsequently withdrawn by the Participant or not all taken up and paid for by the offeror or if the offeror fails to take-up and pay for the Shares pursuant
to the terms of the Take-over Bid or if the Take-over Bid fails to close for any other reason, then the Participant shall promptly return such Shares (or the portion that are not taken up and paid for) to the Corporation for cancellation. Such
Shares shall be deemed not to have been issued and the related Time-Based Options shall be deemed not to have been exercised, and the Corporation shall refund to the Participant, if applicable, the aggregate Exercise Price for the Time-Based
Options. In such event, Time-Based Options will become Vested Options solely in accordance with Sections 5(a) or 11(b)(ii), and any other action by the Participant permitted in accordance with Section 11(b)(iii)(D) shall be deemed not to have
occurred. 

  

	12.	 EFFECTS OF ALTERATION OF SHARE CAPITAL 

In the event of any change in the Shares by reason of any stock dividend, split, recapitalization, merger, consolidation, combination or exchange of
shares or other similar corporate change, equitable adjustments may be made in the number of Time-Based Options, the type of shares or securities subject to the Time-Based Options, the Exercise Price and the formula for determining the cash payable
upon the surrender of Time-Based Options pursuant to associated TSARs. The Committee shall determine which adjustments shall be made in any such event in its sole discretion and its determination shall be conclusive and binding for all purposes of
this Agreement; provided that such adjustments shall not result in any adverse Canadian or United States federal income tax consequences. Without limiting the generality of the foregoing, it is expressly intended that no Time-Based Option or TSAR
shall become subject to Section 409A and no adjustment shall be made to the Exercise Price, the formula for determining the cash payable upon the surrender of Time-Based Options pursuant to associated TSARs, or any other term or condition of
this Agreement if to do so would cause the Time-Based Option or TSAR to become deferred compensation subject to Section 409A. 
  

	13.	 METHOD OF EXERCISE OR SURRENDER OF TIME-BASED OPTIONS 

Any Vested Option may be exercised or surrendered by the Participant or, after death or incapacitation, by the Participant’s duly appointed legal
guardian or legal personal representative, in a manner prescribed by the Corporation from time to time as published on the Corporation’s internal employee website or otherwise communicated in writing to the Participant from time to time. 

 

	14.	 OBLIGATIONS OF THE PARTICIPANT 

Nothing contained in this Agreement or done pursuant to this Agreement shall oblige the Participant to purchase and pay for any Shares except those
Shares underlying the Time-Based Options that the Participant has exercised in the manner provided in this Agreement. 
 The Participant agrees and
acknowledges (and shall be conclusively deemed to have so acknowledged and agreed by participating in the Plan) that the Participant will, at all times, act in strict compliance with Applicable Law and all Corporation Policies applicable to the
Participant in connection with the Plan. Such Applicable Law and Corporation Policies shall include, without limitation, those governing “insiders” or “reporting issuers” as those terms are construed for the purposes of
applicable securities laws, regulations, and rules. 

  
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	15.	 SUBJECT TO APPLICABLE LAW 

The grant of any Time-Based Option hereunder and the obligation to make any payment (including the delivery of Shares) in respect of any Time-Based
Option is subject to compliance with Applicable Law including, without limitation, Sections 26 and 27 hereof. As a condition of participating in the Plan, each Participant agrees to comply with all such Applicable Law and agrees to furnish to the
Corporation all information and undertakings as may be required to permit compliance with Applicable Law. 
  

	16.	 WITHHOLDINGS 

The Corporation or any Affiliated Entity may withhold or cause to be withheld from any amount payable to a Participant, either under the Plan or this
Agreement, or otherwise, such amount as may be necessary so as to ensure that the Corporation or any Affiliated Entity, as applicable, will be able to comply with the applicable provisions of any federal, provincial, state or local law relating to
the withholding of tax or other required deductions, including on the amount, if any, includable in the income of a Participant. 
 The Participant
acknowledges that all taxes which may be payable by the Participant as a result of the granting, exercise, or surrender of the Time-Based Options are the Participant’s sole responsibility and that it is the Participant’s duty and
responsibility to comply with all provisions of the law in relation to the reporting of the acquisition or exercise or surrender of the Time-Based Options and the trading of any Shares issued pursuant to this Agreement. 

 

	17.	 NO AGREEMENT TO EMPLOY 

Nothing contained in this Agreement or done pursuant to this Agreement shall constitute or be construed to constitute or to be evidence of an
agreement or understanding, express or implied, on the part of the Corporation or an Affiliated Entity to retain the Participant in the Participant’s employment for any specific period of time or in any specific capacity or position.

  

	18.	 NON-QUALIFIED STOCK OPTIONS 

The Time-Based Options granted to the Participant hereunder are non-qualified stock options for United States
tax purposes. 
  

	19.	 NO REPRESENTATION AS TO PRICE 

The Corporation makes no representation nor gives any warranty as to the price of the Shares and shall not be held liable for any fluctuation in the
price of the Shares either before or after the exercise of any right conferred under this Agreement. 
  

	20.	 NON-ASSIGNABILITY 

The Time-Based Option and the rights conferred hereby are not assignable, negotiable or otherwise transferable by the Participant other than by will
or the laws of descent and distribution. The Time-Based Option is exercisable only during the Participant’s lifetime and only by the Participant, except in the event of the Participant’s death or incapacity, in which case the Time-Based
Option may be exercised or surrendered by the Participant’s duly appointed legal guardian or legal personal representative as provided herein. 

  
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	21.	 SUBJECT TO CLAWBACK POLICY 

You acknowledge and agree that all Options granted hereunder (and the grant thereof), including any payment in respect thereof, are expressly subject
to the terms and conditions of the Corporation’s “Incentive Compensation Clawback Policy”, attached hereto as Schedule “B”, as same may be amended by the Corporation from time to time. 

 

	22.	 SUBJECT TO PLAN 

The provisions of this Agreement shall be interpreted so as to be expressly subject to the provisions of the Plan. The Participant acknowledges that
the Committee or the Board has full and complete authority to interpret the Plan and to prescribe such rules and regulations and make such other determinations as it deems necessary or desirable for the administration of the Plan in its sole
discretion and that any such rules, regulations or determinations shall be final and binding on the parties to this Agreement. 
  

	23.	 AMENDMENT AND TERMINATION 

Subject to Applicable Law and to Section 11 of the Plan, this Agreement and the Plan may be amended or terminated at any time by the Board in
whole or in part. 
  

	24.	 TIME OF ESSENCE 

Time shall be of the essence of this Agreement. 
  

	25.	 NOTICES 

Any notice to be given by the Participant hereunder shall be sent to the Corporation at: 

Encana Corporation 

500 Centre Street SE 

P.O. Box 2850 

Calgary, Alberta T2P 2S5 

Fax: (403) 645-3400 

Attention:   Vice-President, Human Resources 

and any notice from the Corporation to the Participant shall be sent to the Participant at the Participant’s office or residence address last
known to the Corporation. Either party may change the address to which notice may be given by mailing the same, postage prepaid, or delivering the same to the Corporation or to the Participant, as the case may be, in accordance with the foregoing.
Any such notice if delivered shall be deemed to have been given or made on the date on which it was delivered or if mailed shall be deemed to have been given or made on the third business day following the date on which it was mailed. In the event
of a general postal disruption, notice shall be delivered. 
 The Participant hereby consents to the exchange of information and documents between
the Participant and the Corporation electronically over the Internet or by e-mail (if to the Participant at the e-mail address most recently provided by the Participant
to the Corporation) and it is hereby agreed and acknowledged that any such information and documents sent or received in electronic form shall be the equivalent of original written paper documents. 

  
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	26.	 GOVERNING LAW 

This Agreement shall be governed by and construed in accordance with the laws in force in the Province of Alberta and the federal laws of Canada as
applicable herein. In the event of a dispute, the Participant agrees to submit to the jurisdiction of the Alberta courts. 
  

	27.	 COMPLIANCE WITH SECTION 409A 

Notwithstanding any provision of the Plan or this Agreement to the contrary, where applicable, it is intended that the provisions of the Plan and this
Agreement comply with, or be exempt from, Section 409A, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. Each US Participant
is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or for the account of such US Participant in connection with the Plan or any other Plan maintained by the Corporation or an Affiliated Entity
(including any taxes and penalties under Section 409A), and neither the Corporation nor any Affiliated Entity shall have any obligation to indemnify or otherwise hold such US Participant (or any beneficiary) harmless from any or all of such
taxes or penalties. 
  

	28.	 EXECUTION BY THE CORPORATION 

This Agreement may be executed by application of the facsimile or authorized electronic signature of the Executive Vice-President, Corporate
Services of the Corporation (or his or her written designate) and such signature shall be as valid and effective as if such officer signed this Agreement in person. 
  

	29.	 ACCEPTANCE BY PARTICIPANT 

The Participant shall confirm acceptance of the terms and conditions of this Agreement by electronically selecting and clicking on the button beside
the words “I Accept” from the options provided below. By indicating such acceptance, the Participant agrees to be legally bound by the terms and conditions of this Agreement, and hereby agrees that such acceptance shall be as valid and
effective as of the Date of Grant as if the Participant signed this Agreement in person on that date. In the event the Participant does not accept the terms and conditions of this Agreement because an error exists in the Option information provided
at the outset of this Agreement, the Participant must electronically select and click on the button beside the words “I Do Not Accept” from the options provided below, in which case the parties shall take such steps as may be necessary to
correct any such error. 
 IN WITNESS WHEREOF this Agreement has been executed effective as of the Grant Date. 

ENCANA CORPORATION 
 Mike Williams 

Executive Vice-President, Corporate Services 

  
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 SCHEDULE “A” 

DEFINITIONS 
 In this Agreement,
the following terms shall have the meanings respectively set forth below: 
  

	(a)	 “Agreement” means this Option and Tandem Stock Appreciation Rights Agreement between the Corporation
and the Participant; 

  

	(b)	 “Anniversary Date” means, in respect of the Time-Based Options, each anniversary of the Date of
Grant; 

  

	(c)	 “Applicable Law” means any applicable provision of law, domestic or foreign, including, without
limitation, applicable securities legislation, together with all regulations, rules, policy statements, rulings, notices, orders or other instruments promulgated thereunder, and any rules of the Toronto Stock Exchange; 

 

	(d)	 “Appreciated Value” means, in respect of each TSAR associated with an Time-Based Option, an amount
equal to the excess of the closing price of a Share on the Toronto Stock Exchange on the last Trading Day preceding the date of the surrender of the Time-Based Option, over the Exercise Price; 

 

	(e)	 “CIC Cause” following a Change in Control for purposes of this Agreement means “cause” as
defined in any employment agreement, change in control agreement or similar arrangement with the Corporation to which the Participant is a party as of the Date Employment Ceases; 

 

	(f)	 “Change in Control” shall be deemed to have occurred for purposes of this Agreement if:

  

	 	(i)	 any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity, or
any persons acting jointly or in concert with the foregoing (each, a “Person”), is or becomes the beneficial owner directly or indirectly of 30% or more of either (A) the then-outstanding shares of common stock of the Corporation (the
“Outstanding Corporation Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Corporation entitled to vote generally in the election of directors (the “Outstanding Corporation Voting
Securities”); provided, however, that, for purposes of this Section (f), the following acquisitions of shares or other voting securities of the Corporation shall not constitute a Change in Control: (i) any acquisition directly from the
Corporation, (ii) any acquisition made by the Corporation, (iii) any acquisition by any employee plan (or related trust) sponsored or maintained by the Corporation or any of its subsidiaries, or (iv) any acquisition pursuant to a
transaction that complies with Sections (f)(ii)(1), (f)(ii)(2) and (f)(ii)(3) of this Schedule “A”; 

  

	 	(ii)	 consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving
the Corporation or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Corporation, or the acquisition of assets or securities of another entity by the Corporation or any of its subsidiaries (each, a
“Business Combination”), in each case unless, following such Business Combination, (1) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Corporation Common Stock and the
Outstanding Corporation Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock (or, for a
non-corporate entity, equivalent securities) and the combined voting power of the then-

  
 A-1 

	 	 
outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the
case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Corporation or all or substantially all of the Corporation’s assets either directly or
through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Corporation Common Stock and the Outstanding Corporation Voting Securities, as the case may
be, (2) no Person (excluding any entity resulting from such Business Combination or any employee plan (or related trust) of the Corporation or of such entity resulting from such Business Combination) beneficially owns, directly or indirectly,
30% or more of, respectively, the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) of the entity resulting from such Business Combination or the combined voting
power of the then-outstanding voting securities of such entity, except to the extent that such ownership existed prior to the Business Combination, and (3) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such Business Combination were members of the Incumbent Board (as defined below) at the time of the execution of the initial agreement or
of the action of the Board providing for such Business Combination; 

  

	 	(iii)	 individuals who, as of February 14, 2018, constitute the Board (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to February 14, 2018 whose election, or nomination for election by the Corporation’s shareholders, was approved by
a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person or entity other than the Board;
or 

	 	(iv)	 approval by the shareholders of the Corporation of a complete liquidation or dissolution of the Corporation.

 For the purposes of this Section (f) of this Schedule “A”: 

 

	 	(i)	 the term “acting jointly or in concert” shall be interpreted in accordance with Section 159 of the
Securities Act (Alberta), as amended; and 

	 	(ii)	 the term “beneficial ownership” shall be interpreted in accordance with Sections 5 and 6 of the Securities
Act (Alberta) and “beneficial owner” shall have a corresponding meaning, except that for purposes of this Agreement, options and convertible securities granted by the Corporation to employees, officers or directors shall not be included in
determining the percentage of beneficial ownership of any Person; 

  

	(g)	 “Close of Business” means the close of trading on the Toronto Stock Exchange on any Trading Day;

  

	(h)	 “Committee” means the Human Resources and Compensation Committee of the Board, or such other
committee of the board, as constituted from time to time, which may be designated by the Board to, inter alia, interpret, administer and implement the Plan and this Agreement, and any reference in this Agreement to action by the Committee
means action by or under the authority of the Committee or, if no Committee has been designated, by the Board; 

  
 A-2 

	(i)	 “Corporation Policies” means, at a particular time, the policies and practices of the Corporation
(or, if applicable, the Affiliated Entity which employs the Participant or which employed the Retired Participant), as published on the Corporation’s internal employee website or otherwise communicated in writing to the employees (or, where
necessary, to a Retired Participant) of the Corporation and/or its Affiliated Entities; 

  

	(j)	 “Date Employment Ceases” means: 

 

	 	(i)	 in the case of voluntary Termination of Employment initiated by the Participant, the last date the Participant is, for
the purposes of receiving his or her regular salary, on the payroll of the Corporation or an Affiliated Entity; 

  

	 	(ii)	 in the case of involuntary Termination of Employment of the Participant by the Corporation or an Affiliated Entity
for cause (as determined by the Corporation or the Affiliated Entity, as applicable), the date written notification of dismissal from employment is delivered to the Participant; 

 

	 	(iii)	 in the case of involuntary Termination of Employment of the Participant by the Corporation or an Affiliated Entity
other than for cause (as determined by the Corporation or the Affiliated Entity, as applicable), the date identified in the written notification of Termination of Employment delivered to the Participant as the “Termination Date” or
“Departure Date” and, where both dates are so referred to, the earlier thereof, and, where such date is not identified in the written notification, the date written notification of dismissal from employment is delivered to the Participant;
and 

  

	 	(iv)	 in the case where the Participant is employed by an Affiliated Entity and for any reason including, without
limitation, by reason of sale, disposition or other divestiture thereof, in whole or in part, such employer ceases to be an Affiliated Entity of the Corporation, the effective date (in the case of a sale, disposition or other divestiture, the
closing date of such transaction or series of transactions, as determined by the Corporation) upon which the Participant’s employer ceases to be an Affiliated Entity; 

but, for greater certainty, shall not include any notice period which arises or may be deemed to arise upon the Termination of
Employment of the Participant, and shall not include the date the Participant ceases to be an employee of the Corporation or an Affiliated Entity upon the Participant’s death or Retirement, or the date the Participant commences Short-Term
Disability, Long-Term Disability, a Paid Leave of Absence, an Unpaid Leave of Absence, or Family Leave; 
  

	(k)	 “Date of Grant” means the date upon which the Corporation grants the Time-Based Options to the
Participant, and as evidenced by this Agreement, which term is sometimes referenced as “Grant Date”; 

  

	(l)	 “Date of Retirement” means the last day the Participant is, for the purposes of receiving his or her
regular salary, on the payroll of the Corporation or an Affiliated Entity immediately prior to commencing Retirement; 

  

	(m)	 “Death or Retirement Exercise Period” means the period of time extending from the date of the
Participant’s death or Date of Retirement, as applicable, to the earlier of: (i) the date that is six months following the date of the Participant’s death or Date of Retirement, as applicable; and (ii) the Expiry Date. Should the
Death or Retirement Exercise Period terminate on a date other than a Trading Day, the Death or Retirement Exercise Period shall terminate on the Close of Business on the last Trading Day prior to that date; 

  
 A-3 

	(n)	 “Exercise Price” means the price payable per Share on the exercise by the Participant of a Time-Based
Option determined on the basis of the Grant Price; 

  

	(o)	 “Expiry Date” means the Close of Business on the seventh Anniversary Date, subject to any Blackout
Extension Period (as defined and set forth in the Plan). Should the Expiry Date fall on a date other than a Trading Day, the Expiry Date shall be the Close of Business on the last Trading Day prior to that date; 

 

	(p)	 “Family Leave” means a period during which, pursuant to the Corporation Policies or Applicable Law,
the Participant is considered to be on family leave, and does not provide employment services to the Corporation or an Affiliated Entity; 

  

	(q)	 “Good Reason” means “Good Reason” as defined in any employment agreement, change in control
agreement or similar arrangement with the Corporation or an Affiliated Entity to which the Participant is a party as of the Date Employment Ceases; 

  

	(r)	 “Long-Term Disability” means any period of time during which the Participant receives, or is
determined to be entitled to receive, disability benefits under the Corporation’s or an Affiliated Entity’s long-term disability plans; 

  

	(s)	 “Paid Leave of Absence” means a period during which, pursuant to the Corporation Policies or
Applicable Law, the Participant is considered to be on a leave of absence and continues to receive his or her normal salary, but does not provide employment services to the Corporation or an Affiliated Entity; 

 

	(t)	 “Related Corporation” means a corporation that is related, within the meaning of the Income Tax
Act (Canada), to the Corporation; 

  

	(u)	 “Retired Participant” means a Participant who ceases to be an employee of the Corporation or an
Affiliated Entity by reason of his or her Retirement; 

  

	(v)	 “Retirement” means the early or normal retirement of the Participant from employment with the
Corporation or an Affiliated Entity in accordance with the Corporation Policies; 

  

	(w)	 “Return to Service Date” means the date, following an Unpaid Leave of Absence, that the Participant
recommences the provision of employment services to the Corporation or an Affiliated Entity, in full or in part; 

  

	(x)	 “Section 409A” means section 409A of the United States Internal Revenue Code of 1986, as amended, and
any applicable United States Treasury Regulations and other binding regulatory guidance promulgated thereunder; 

  

	(y)	 “Share” means a common share in the capital of the Corporation as is traded on the Toronto Stock
Exchange; 

  

	(z)	 “Short-Term Disability” means any period of time during which the Participant receives disability
benefits under the Corporation’s or an Affiliated Entity’s short-term disability plans; 

  

	(aa)	 “Specified Period” means 24 months, inclusive of the date on which the Change in Control occurs;

  

	(bb)	 “Take-over Bid” has the meaning assigned by Section 11(b)(iii); 

  
 A-4 

	(cc)	 “Termination Exercise Period” means the period of time extending from the Date Employment Ceases to
the earlier of: (i) the Close of Business on the 60th Trading Day after the Date Employment Ceases; and (ii) the Expiry Date; 

 

	(dd)	 “Termination of Employment” means an event by which the Participant ceases to be an employee of the
Corporation or an Affiliated Entity but, for greater certainty, shall not include an event whereby the Participant ceases to be an employee of the Corporation or an Affiliated Entity upon the Participant’s death or Retirement or where the
Participant commences Short-Term Disability, Long-Term Disability, a Paid Leave of Absence, an Unpaid Leave of Absence, or Family Leave; 

  

	(ee)	 “Time-Based Options” has the meaning assigned by Section 4(a); 

 

	(ff)	 “Trading Day” means a day on which the Toronto Stock Exchange is open for trading;

  

	(gg)	 “TSAR” means a tandem stock appreciation right which is associated with a Time-Based Option and which
entitles the Participant to surrender a Vested Option in accordance with Section 5(d), subject to the terms and conditions hereof; 

  

	(hh)	 “Unpaid Leave of Absence” means a period of time during which, pursuant to the Corporation Policies
or Applicable Law, the Participant is considered to be on a leave of absence and does not continue to receive his or her salary or provide employment services to the Corporation or an Affiliated Entity which, for the purposes of this Agreement,
shall be deemed to commence on the “Date of Unpaid Leave of Absence”, being the first day of the Participant’s Unpaid Leave of Absence, as communicated in writing to the Participant by the Corporation or an Affiliated Entity in
accordance with the Corporation Policies; 

  

	(ii)	 “US Participant” means, where applicable, a Participant whose income in respect of services performed
for the Corporation or an Affiliated Entity is subject to Section 409A; 

  

	(jj)	 “Vested Option” means a Time-Based Option which has vested and can be exercised by the Participant to
purchase a Share or, alternatively, can be surrendered by the Participant in accordance with Section 5(d), subject to the terms and conditions hereof; and 

 

	(kk)	 “Vesting Date” means the date on which a Time-Based Option becomes a Vested Option in accordance with
the provisions of this Agreement including, without limitation, Section 5(a) hereof. 

  
 A-5 

 Schedule “B” 

INCENTIVE COMPENSATION CLAWBACK POLICY: 

By resolution of the Board of Directors (the “Board”) of Encana Corporation (“Encana” or the
“Corporation”), this Policy is effective as of this 22nd day of October, 2012 (the “Effective Date”). 

This Policy applies to the President & Chief Executive Officer and each Executive-Vice President of the Corporation and any individual who
serves in either such capacity on or following the Effective Date (collectively, the “Executive”). References in this Policy to the “Corporation” include, where applicable, any affiliate thereof. 

This Policy has been adopted to enhance the Corporation’s alignment with best practices in respect of risk management and executive compensation
and shall be, at all times, subject to and interpreted in a manner consistent with applicable laws or the rules of any applicable stock exchange (collectively, “Applicable Rules”). 

This Policy applies to “Incentive-Based Compensation” which, for the purposes of this Policy, means compensation relating to the achievement
of performance goals or similar conditions, excluding salary, perquisites, benefits and pension entitlements, and including, without limitation, any award or grant of or any eligibility, entitlement or gain of, an Executive under the
Corporation’s: (i) High Performance Results Plan, or any other short-term incentive plan; or (ii) Long-Term Incentive (“LTI”) program including, without limitation, Employee Stock Option Plan, Employee Stock
Appreciation Rights Plan, Performance Share Unit Plan, Restricted Share Unit Plan and Deferred Share Unit Plan, as each may be amended from time to time (including any performance-based grants under any such plans). For greater clarity, this Policy
shall not apply to any Incentive-Based Compensation awarded, granted or paid to an Executive prior to the Effective Date. 
 Where: 

 

	 	◾	 	 the Corporation is required to prepare an accounting restatement due to its material
non-compliance with any financial reporting requirement under applicable securities laws (the “Restatement”), (the date upon which the Corporation is required to prepare such Restatement is
hereinafter the “Restatement Date”); 

  

	 	◾	 	 the Executive received Incentive-Based Compensation referable to the financial years subject to the Restatement in
excess of what the Executive would have been paid under the Restatement (the “Overcompensation Amount”); and 

  

	 	◾	 	 the Executive engaged in gross negligence, intentional misconduct or fraud which caused or significantly contributed
to the Corporation’s material non-compliance with applicable securities laws which resulted in the requirement for the Restatement; 

the Board shall be entitled: 
  

	 	◾	 	 where and to the extent the Overcompensation Amount has been previously paid, transferred or otherwise made available
to the Executive, to require the Executive, by written demand, to reimburse the Corporation for the Overcompensation Amount; and 

  

	 	◾	 	 where all or a portion of the Overcompensation Amount has not been paid, transferred or otherwise made available to
the Executive, the right of the Executive to be so paid or have such benefit transferred or otherwise made available to him or her shall, to the extent required to reimburse the Corporation for such Overcompensation Amount, immediately terminate and
be 

  
 B-1 

	 	 
forfeited by the Executive and where required, cancelled by the Corporation to such extent and upon such date as may be specified by the Board; and 

 

	 	◾	 	 to the extent the Overcompensation Amount is not immediately recovered upon demand from the Executive, whether via
direct reimbursement, forfeiture and/or cancellation, to require a sufficient quantity or value of any compensation owing by the Corporation to the Executive including, without limitation, any unvested or unexercised awards under the LTIs (the
“Outstanding LTIs”), be immediately withheld and/or irrevocably cancelled by the Corporation to compensate for (or set off the value of same against) the Overcompensation Amount or any unrecovered portion thereof, and to bring any
other actions against the Executive which the Board may deem necessary to recover the Overcompensation Amount. 

 The period of
time during which the Corporation shall be entitled to seek recovery of the Overcompensation Amount from the Executive shall be three (3) years from the Restatement Date. Recoupment of Overcompensation Amounts under this Policy shall be
initiated by the Corporation at the request of the Board, and all amounts recoverable or payable hereunder shall be paid to the Corporation or as directed by the Board. 

If Applicable Rules require the Corporation to adopt a policy or provisions relating to the recoupment or recovery of incentive-based or other
compensation based on restated financial statements which are inconsistent with or materially differ from this Policy and the Board adopts such policy or provisions to comply with Applicable Rules (the “New Policy”), such New Policy
shall replace and supersede this Policy and shall apply to Incentive-Based Compensation granted or awarded to the Executive following the effective date of the New Policy. Subject to Applicable Rules, this Policy shall continue to apply to
Incentive-Based Compensation granted or awarded to the Executive prior to the effective date of the New Policy. This Policy may be terminated at any time by the Board. 

  
 B-2EX-10.8

 Exhibit 10.8 
  

 
 ENCANA CORPORATION 

EMPLOYEE STOCK APPRECIATION RIGHTS PLAN 

Adopted with effect from February 12, 2008, as amended December 9, 2008, 

November 30, 2009, April 20, 2010, July 20, 2010, February 24, 2015, February 22, 2016 and 

February 14, 2018. 

 TABLE OF CONTENTS 
  

							
	 Section
	 	 	  	Page	 
			
	 1. 
	 	 PREAMBLE AND DEFINITIONS 
	  	 	1 	 
			
	 2. 
	 	 ADMINISTRATION 
	  	 	12	 
			
	 3. 
	 	 GRANT OF SARS 
	  	 	13	 
			
	 4. 
	 	 VESTING OF SARS 
	  	 	14	 
			
	 5. 
	 	 TERMINATION OF EMPLOYMENT, DISABILITY, LEAVES OF ABSENCE, ETC. 
	  	 	17	 
			
	 6. 
	 	 EARLY EXERCISE AND ACCELERATED VESTING 
	  	 	21	 
			
	 7. 
	 	 EFFECTS OF ALTERATION OF SHARE CAPITAL 
	  	 	24	 
			
	 8. 
	 	 METHOD OF EXERCISE OF SARS 
	  	 	24	 
			
	 9. 
	 	 NO OTHER RIGHTS 
	  	 	25	 
			
	 10.
	 	 GENERAL 
	  	 	26	 

 ENCANA CORPORATION 

EMPLOYEE STOCK APPRECIATION RIGHTS PLAN 

(Adopted with effect from February 12, 2008, as amended December 9, 2008, 

November 30, 2009, April 20, 2010, July 20, 2010, February 24, 2015, February 22, 2016 and February 14, 2018) 

 

	1.	 PREAMBLE AND DEFINITIONS 

 

	1.1	 Title 

The Plan described in this document shall be called the “Encana Corporation Employee Stock Appreciation Rights Plan” (the
“Plan”). 
  

	1.2	 Purposes of the Plan 

The principal purposes of the Plan are to advance the interests of Corporation and its Affiliates by: 

 

	 	(a)	 promoting a proprietary interest in the Corporation among employees; 

 

	 	(b)	 attracting and retaining qualified employees the Corporation requires; 

 

	 	(c)	 providing a long-term incentive element in overall compensation of employees; and 

 

	 	(d)	 to promoting an alignment of interests between employees and shareholders of the Corporation. 

 

	1.3	 Effective Date of the Plan 

The Plan shall have effect from and after February 12, 2008. 

 

	1.4	 Definitions 

In the Plan, the following terms shall have the meanings respectively set forth below: 

 

	 	(a)	 “Achieved Performance Criteria” means the Performance Criteria which have been satisfied, as and when
determined by the Committee, in respect of any particular Performance Period, and which shall be published on the Corporation’s internal employee website or otherwise communicated in writing to the employees (or, where necessary, to a Retired
Participant) of the Corporation and its Affiliates; 

  

	 	(b)	 “Affiliate” means any corporation, partnership or other entity in which the Corporation, directly or
indirectly, has a majority ownership interest; 

  

	 	(c)	 “Anniversary Date” means, in respect of each SAR, each anniversary of the Date of Grant;

			
	 Encana Corporation
 Employee Stock Appreciation Rights Plan

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	 	Page 2

  

	 	(d)	 “Applicable Law” means any applicable provision of law, domestic or foreign, including, without
limitation, applicable securities legislation, together with all regulations, rules, policy statements, rulings, notices, orders or other instruments promulgated thereunder, and, in respect of a Non-Canadian
Participant, unless otherwise provided in a Grant Agreement, any rules of the New York Stock Exchange and, in respect of a Canadian Participant, unless otherwise provided in a Grant Agreement, any rules of the Toronto Stock Exchange;

  

	 	(e)	 “Appreciation Value” means, in respect of each SAR, an amount equal to the closing price per Share, in
respect of a Non-Canadian Participant, unless otherwise specified in a Grant Agreement, on the New York Stock Exchange and, in respect of a Canadian Participant, unless otherwise specified in a Grant
Agreement, on the Toronto Stock Exchange, on the immediately preceding Trading Day the SAR is exercised, less the Base Value of the SAR; provided that if, in respect of a Non-Canadian Participant, the Shares
are not listed and posted for trading on the New York Stock Exchange on the immediately preceding Trading Day the SAR is exercised, or, in respect of a Canadian Participant, are not listed and posted for trading on the Toronto Stock Exchange on the
immediately preceding Trading Day the SAR is exercised, then “Appreciation Value” shall be the fair market value per Share as determined by the Board in its sole discretion, less the Base Value of the SAR; 

 

	 	(f)	 “Base Value” means, in respect of each SAR, the amount set by the Committee pursuant to
Section 3.5; 

  

	 	(g)	 “Blackout Period” means a trading blackout period imposed by the Corporation under the
Corporation’s Securities Trading and Insider Reporting Policy (as amended, supplemented or replaced by the Corporation from time to time); 

  

	 	(h)	 “Board” means the Board of Directors of the Corporation; 

 

	 	(i)	 “Bonus SAR” means any SAR that is granted to a Participant and is designated as a Bonus SAR pursuant to
Section 4.1; 

  

	 	(j)	 “Canadian Participant” means a Participant who is a resident of Canada for the purposes of the
Income Tax Act (Canada) or a Participant who is granted a SAR in respect of employment services to be rendered to the Corporation or an Affiliate in Canada; 

 

	 	(k)	 “CIC Cause” following a Change in Control for purposes of this Plan means, unless otherwise provided in
an Grant Agreement, (i) “cause” as defined in any employment agreement, change in control agreement or similar arrangement with the Corporation to which the Participant is a party as of the Date Employment Ceases, or (ii) if there is
no such arrangement or if it does not define “cause” or CIC Cause: (A) conviction of, or plea of guilty or nolo contendere (or its equivalent) by, the Participant for committing an indictable offence in Canada or a felony under U.S.
federal law or the law of the state in which such action occurred, (B) willful and deliberate failure on the part of the Participant in the performance of his or her employment duties in any material respect that remains uncured thirty
(30) days after receipt of written notice from the Corporation specifying in reasonable detail the alleged failure, (C) dishonesty in the course of 

			
	 Encana Corporation
 Employee Stock Appreciation Rights Plan

(With amendments as of February 14, 2018)
  
	 	Page 3

  

	 	 
fulfilling the Participant’s employment duties that results in material harm to the Corporation, or (D) a material violation of the Corporation Policies. For purposes of this Plan, any
determination by the Committee as to whether CIC Cause exists shall be subject to de novo review; 

  

	 	(l)	 “Change in Control” shall be deemed to have occurred for purposes of this Plan if:

  

	 	(i)	 any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity, or any
persons acting jointly or in concert with the foregoing (each, a “Person”), is or becomes the beneficial owner directly or indirectly of 30% or more of either (A) the then-outstanding shares of common stock of the Corporation
(the “Outstanding Corporation Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Corporation entitled to vote generally in the election of directors (the “Outstanding
Corporation Voting Securities”); provided, however, that, for purposes of this Section 1.4(l)(i), the following acquisitions of shares or other voting securities of the Corporation shall not constitute a Change in Control: (i) any
acquisition directly from the Corporation, (ii) any acquisition made by the Corporation, (iii) any acquisition by any employee plan (or related trust) sponsored or maintained by the Corporation or any of its subsidiaries, or (iv) any
acquisition pursuant to a transaction that complies with Sections 1.4(l)(ii)(1), 1.4(l)(ii)(2) and 1.4(l)(ii)(3); 

  

	 	(ii)	 consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the
Corporation or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Corporation, or the acquisition of assets or securities of another entity by the Corporation or any of its subsidiaries (each, a
“Business Combination”), in each case unless, following such Business Combination, (1) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Corporation Common Stock and the
Outstanding Corporation Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock (or, for a
non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the
Corporation or all or substantially all of the Corporation’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding
Corporation Common Stock and the Outstanding Corporation Voting Securities, as the case may be, (2) no Person (excluding any entity resulting from such Business Combination or any employee plan (or related trust) of the Corporation or of such
entity resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding shares of common stock (or, 

			
	 Encana Corporation
 Employee Stock Appreciation Rights Plan

(With amendments as of February 14, 2018)
  
	 	Page 4

  

	 	 
for a non-corporate entity, equivalent securities) of the entity resulting from such Business Combination or the combined voting power of the
then-outstanding voting securities of such entity, except to the extent that such ownership existed prior to the Business Combination, and (3) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such Business Combination were members of the Incumbent Board (as defined below) at the time of the execution of the initial agreement or
of the action of the Board providing for such Business Combination; 

  

	 	(iii)	 individuals who, as of Effective Date, constitute the Board (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to Effective Date whose election, or nomination for election by the Corporation’s shareholders, was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person or entity other than the Board; or

  

	 	(iv)	 approval by the shareholders of the Corporation of a complete liquidation or dissolution of the Corporation.

 For the purposes of this Section 1.4(l): 

 

	 	(i)	 the term “acting jointly or in concert” shall be interpreted in accordance with Section 159 of the
Securities Act (Alberta), as amended; and 

  

	 	(ii)	 the term “beneficial ownership” shall be interpreted in accordance with Sections 5 and 6 of the Securities
Act (Alberta) and “beneficial owner” shall have a corresponding meaning, except that for purposes of this Plan, options and convertible securities granted by the Corporation to employees, officers or directors shall not be included in
determining the percentage of beneficial ownership of any Person. 

 Notwithstanding the foregoing, with respect to
SARs granted prior to February 14, 2018, any event or transaction that would have constituted a “Change in Control” under the definition of such term in effect immediately prior to the February 14, 2018 amendment of the Plan
shall also be deemed to constitute a “Change in Control” for purposes of this Plan, regardless of whether it would constitute a “Change in Control” within the meaning of the definition set forth in this Section 1.4(l); 

 

	 	(m)	 “Close of Business” means, on any Trading Day, in respect of a
Non-Canadian Participant, unless otherwise provided in a Grant Agreement, the close of trading on the New York Stock Exchange and, in respect of a Canadian Participant, unless otherwise provided in a Grant
Agreement, the close of trading on the Toronto Stock Exchange; 

			
	 Encana Corporation
 Employee Stock Appreciation Rights Plan

(With amendments as of February 14, 2018)
  
	 	Page 5

  

	 	(n)	 “Committee” means the Human Resources and Compensation Committee of the Board or such other committee
of the Board, as constituted from time to time, which may be designated by the Board to, among other things, interpret, administer and implement the Plan, and any reference in the Plan to action by the Committee means action by or under the
authority of the Committee or, if no Committee has been designated, by the Board; 

  

	 	(o)	 “Committee Meeting Date” means the date of the meeting of the Committee held to review matters related
to the SARs, including the determination of whether and the degree to which the Performance Criteria for a particular Performance Period have been satisfied and constitute “Achieved Performance Criteria”, which meeting shall occur at least
once annually and by no later than June 1 of the year immediately following the relevant Performance Period; 

  

	 	(p)	 “Corporation” means Encana Corporation and any successor corporation whether by amalgamation, merger or
otherwise; 

  

	 	(q)	 “Corporation Policies” means, at a particular time, the policies and practices of the Corporation (or,
where applicable, the Affiliate that employs the Participant), as published on the Corporation’s internal employee website or otherwise communicated in writing to the employees (or, where necessary, to a Retired Participant) of the Corporation
and/or its Affiliates; 

  

	 	(r)	 “Date Employment Ceases” means, in respect of a Participant: 

 

	 	(i)	 in the case of voluntary Termination of Employment initiated by the Participant, the last date the Participant is, for
the purposes of receiving his or her regular salary, on the payroll of the Corporation or an Affiliate; 

  

	 	(ii)	 in the case of involuntary Termination of Employment of the Participant by the Corporation or an Affiliate for cause (as
determined by the Corporation or the Affiliate, as applicable), the date written notification of dismissal from employment is delivered to the Participant; 

  

	 	(iii)	 in the case of involuntary Termination of Employment of the Participant by the Corporation or an Affiliate other
than for cause (as determined by the Corporation or the Affiliate, as applicable), the date identified in the written notification of Termination of Employment delivered to the Participant as the “Termination Date” or “Departure
Date” and, where both dates are so referred to, the earlier thereof, and, where such date is not identified in the written notification, the date written notification of dismissal from employment is delivered to the Participant; and

  

	 	(iv)	 in the case where the Participant is employed by an Affiliate and for any reason including, without limitation, by
reason of sale, disposition or other divestiture thereof, in whole or in part, such employer ceases to be an Affiliate of the Corporation, the effective date (in the case of a sale, disposition or other divestiture, the closing date of such
transaction or series of transactions, as determined by the Corporation) upon which the Participant’s employer ceases to be an Affiliate; 

			
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but, for greater certainty, shall not include any notice period which arises or may be deemed to arise upon the Termination of Employment of the Participant, and shall not include the date the
Participant ceases to be an employee of the Corporation or an Affiliate upon the Participant’s death or Retirement, or the date the Participant commences Short-Term Disability, Long-Term Disability, a Paid Leave of Absence, an Unpaid Leave of
Absence, or Family Leave; 

  

	 	(s)	 “Date of Grant” means, in respect of a particular SAR, the date upon which the Committee grants the SAR
to the Participant. Where the Committee determines to grant any SAR on a date which is within a Blackout Period or where, for any reason: (i) a grant of a SAR falls on a day that is within a Blackout Period; or (ii) the Fair Market Value
of the grant of a SAR is calculated using a Trading Day that is within a Blackout Period, then the Date of Grant shall automatically occur and be effective on the sixth Trading Day immediately following the end of such Blackout Period to permit the
Fair Market Value to be determined based on Trading Days which occur immediately following the end of any of such Blackout Period; 

  

	 	(t)	 “Date of Retirement” means, in respect of a Participant, the last day the Participant is, for the
purposes of receiving his or her regular salary, on the payroll of the Corporation or an Affiliate immediately prior to commencing Retirement; 

  

	 	(u)	 “Death or Retirement Exercise Period” means, in respect of a particular SAR granted to a Participant,
the period of time extending from the date of the Participant’s death or Date of Retirement, as applicable, to the earlier of: (i) the date that is six months following the date of the Participant’s death or Date of Retirement, as
applicable; and (ii) the Expiry Date of the SAR. Should the Death or Retirement Exercise Period terminate on a date other than a Trading Day, the Death or Retirement Exercise Period shall terminate on the Close of Business on the last Trading
Day prior to that date; 

  

	 	(v)	 “Expiry Date” means: 

 

	 	(i)	 in respect of a particular SAR granted to a Canadian Participant on or following February 24, 2015, the earlier of:
(A) December 15th of the calendar year in which the Vesting Date of such SAR occurs; and (B) the Close of Business on the seventh anniversary of the Date of Grant of such SAR. In respect
of SAR granted to a Canadian Participant prior to February 24, 2015, the earlier of: (A) December 15th of the calendar year in which the Vesting Date of such SAR occurs; and (B) the
Close of Business on the fifth anniversary of the Date of Grant of such SAR; and 

  

	 	(ii)	 in respect of a particular SAR granted to a Non-Canadian Participant on or
following February 24, 2015, the Close of Business on the seventh anniversary of the Date of Grant of such SAR. In respect of a SAR granted to a Canadian Participant prior to February, 24, 2015, the Close of Business on the fifth anniversary of
the Date of Grant of such SAR; 

 Should the Expiry Date of a SAR fall on a date other than a Trading Day, the
Expiry Date shall be the Close of Business on the last Trading Day prior to that 

			
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date. Should the Expiry Date fall on a date which is within a Blackout Period, the provisions of Section 8.3 hereof shall apply; 

 

	 	(w)	 “Fair Market Value” means, with respect to a particular date: 

 

	 	(i)	 in respect of a Non-Canadian Participant, unless otherwise provided in a Grant
Agreement, the volume-weighted average (rounded to two decimal places) of the trading price of a Share on the New York Stock Exchange during the immediately preceding five (5) Trading Day period prior to that particular date or, if the Shares
did not trade on the New York Stock Exchange on a particular day during such period, the volume-weighted average (rounded to two decimal places) of the trading price of a Share on the New York Stock Exchange during the immediately preceding five
(5) days on which the Shares were traded; 

  

	 	(ii)	 in respect of a Canadian Participant, unless otherwise provided in a Grant Agreement, the volume-weighted average
(rounded to two decimal places) of the trading price of a Share on the Toronto Stock Exchange during the immediately preceding five (5) Trading Day period prior to that particular date or, if the Shares did not trade on the Toronto Stock
Exchange on a particular day during such period, the volume-weighted average (rounded to two decimal places) of the trading price of a Share on the Toronto Stock Exchange during the immediately preceding five (5) days on which the Shares were
traded; 

  

	 	(iii)	 if, in respect of a Non-Canadian Participant, the Shares are not then listed and
posted for trading on the New York Stock Exchange or, in respect of a Canadian Participant, are not listed and posted for trading on the Toronto Stock Exchange, then it shall be the fair market value per Share as determined by the Board in its sole
discretion; 

  

	 	(x)	 “Family Leave” means, in respect of a Participant, a period during which, pursuant to the Corporation
Policies or Applicable Law, the Participant is considered to be on family leave, and does not provide employment services to the Corporation or an Affiliate; 

 

	 	(y)	 “Good Reason” means (i) “Good Reason” as defined in any employment agreement, change in
control agreement or similar arrangement with the Corporation or an Affiliate to which the Participant is a party as of the Date Employment Ceases, or (ii) if there is no such arrangement or if it does not define Good Reason, and the
Participant holds the title of “Vice-President” or above as of immediately prior to the Change in Control, the occurrence of any of the following on or after the Change in Control, unless the Participant shall have given express written
consent thereto: (A) a material diminution in the scope of the Participant’s duties or responsibilities from those in effect immediately prior to the Change in Control, provided that any change in the Participant’s duties or
responsibilities resulting solely from the fact that the Corporation is no longer publicly traded, or no longer the ultimate parent company of its affiliated group, due to the Change in Control shall not be deemed to be a material diminution in the
scope of the Participant’s duties or responsibilities; (B) a reduction in the Participant’s annual base salary as in effect immediately prior to the Change in 

			
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Control; (C) a material reduction in the Participant’s short-term or long-term incentive compensation opportunity (measured based on grant date fair value of any equity-based awards) in
effect immediately prior to the Change in Control; (D) the failure by the Corporation or an Affiliate to pay the Participant (1) any portion of the Participant’s then current compensation, except pursuant to an across-the-board compensation deferral similarly affecting other such Vice-Presidents and required by applicable law, or (2) any installment of deferred compensation at
the time such installment is due under any deferred compensation program of the Corporation or an Affiliate; or (E) a requirement that the Participant be based more than 50 miles from where the Participant is based immediately prior to the
Change in Control, except for: (1) required travel on the Corporation’s or Affiliate’s business to an extent substantially consistent with the Participant’s business travel obligations in the ordinary course of business
immediately prior to the Change in Control; or (2) if the Participant has been relocated or repatriated by the Corporation or an Affiliate prior to the Change in Control, such relocation as may be required by applicable law or performed in
accordance with an agreement (whether written or unwritten) entered into between the Corporation (or an Affiliate) and the Participant prior to the Change in Control; provided, that, a Participant may only resign for Good Reason under this clause
(ii) if the Participant has provided written notice to the Corporation and, if the Participant is employed by an Affiliate, such Affiliate, of the event or circumstance alleged to constitute Good Reason within ninety (90) days following
the initial existence thereof, the Corporation or Affiliate, as applicable, has failed to cure such event or circumstance within thirty (30) days after receipt of such notice, and the Participant resigns within thirty (30) days after the
expiration of such cure period. If the Participant is not covered by clause (i) or (ii) above, then Good Reason shall not be applicable to such Participant; 

 

	 	(z)	 “Grant Agreement” means a written agreement between the Corporation and a Participant under which a SAR
is granted, as contemplated by Section 3.3, together with such schedules, amendments, deletions or changes thereto as are permitted under the Plan; 

  

	 	(aa)	 “Long-Term Disability” means, in respect of a Participant, any period of time during which the
Participant receives, or is determined to be entitled to receive, disability benefits under the Corporation’s or an Affiliate’s long-term disability plans; 

 

	 	(bb)	 “Maximum Performance Criteria” means, in respect of the SARs granted pursuant to a particular Grant
Agreement, that maximum Performance Criteria determined by the Committee, the achievement of which in a particular Performance Period shall entitle all of the Performance SARs and Bonus SARs granted to a Participant which are eligible to become
Vested SARs in respect of such Performance Period to become Vested SARs, subject to the provisions of the Plan, and which shall be published on the Corporation’s internal employee website or otherwise communicated in writing to the employees
(or, where necessary, to a Retired Participant) of the Corporation and its Affiliates; 

  

	 	(cc)	 “Median Performance Criteria” means, in respect of the SARs granted pursuant to a particular Grant
Agreement, that median Performance Criteria determined by 

			
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the Committee, the achievement of which in a particular Performance Period shall entitle all of the Performance SARs granted to a Participant which are eligible to become Vested SARs in respect
of such Performance Period to become Vested SARs, and the over-achievement of which in a particular Performance Period shall entitle at least a portion of the Bonus SARs granted to a Participant which are eligible to become Vested SARs in respect of
such Performance Period to become Vested SARs, and which shall be published on the Corporation’s internal employee website or otherwise communicated in writing to the employees (or, where necessary, to a Retired Participant) of the Corporation
and its Affiliates; 

  

	 	(dd)	 “Minimum Performance Criteria” means, in respect of the SARs granted pursuant to a particular Grant
Agreement, that minimum Performance Criteria determined by the Committee, the over-achievement of which in a particular Performance Period shall entitle at least a portion of the Performance SARs granted to a Participant which are eligible to become
Vested SARs in respect of such Performance Period to become Vested SARs, and which shall be published on the Corporation’s internal employee website or otherwise communicated in writing to the employees (or, where necessary, to a Retired
Participant) of the Corporation and its Affiliates; 

  

	 	(ee)	 “Non-Canadian Participant” means a Participant who is a non-resident of Canada for the purposes of the Income Tax Act (Canada) and who is granted a SAR in respect of employment services to be rendered to the Corporation or an Affiliate outside Canada;

  

	 	(ff)	 “Paid Leave of Absence” means, in respect of a Participant, a period during which, pursuant to the
Corporation Policies or Applicable Law, the Participant is considered to be on a leave of absence and continues to receive his or her normal salary, but does not provide employment services to the Corporation or an Affiliate; 

 

	 	(gg)	 “Participant” means any employee of the Corporation or an Affiliate as the Committee may designate from
time to time as being eligible to participate in the Plan, and which includes a Canadian Participant and a Non-Canadian Participant; 

 

	 	(hh)	 “Performance Criteria” means, in respect of a Performance SAR or a Bonus SAR, that performance criteria
determined by the Committee and which shall be published on the Corporation’s internal employee website or otherwise communicated in writing to the employees (or, where necessary, to a Retired Participant) of the Corporation and its Affiliates;

  

	 	(ii)	 “Performance Period” means, in respect of a Performance SAR or a Bonus SAR, the period in which the
Performance Criteria must be satisfied in order for such SAR to become a Vested SAR and, except as otherwise provided: 

  

	 	(i)	 the “First Performance Period” shall be the period extending from January 1 to December 31 of
the year in which the Date of Grant occurs; 

			
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	 	(ii)	 the “Second Performance Period” shall be the period extending from January 1 to December 31
of the year immediately following the year in which the Date of Grant occurs; and 

  

	 	(iii)	 the “Third Performance Period” shall be the period extending from January 1 to December 31 of
the second year immediately following the year in which the Date of Grant occurs; 

  

	 	(jj)	 “Performance SAR” means any SAR that is granted to a Participant and is designated as a Performance SAR
pursuant to Section 4.1; 

  

	 	(kk)	 “Plan” means this Encana Corporation Employee Stock Appreciation Rights Plan, including any schedules
or appendices hereto, as amended from time to time; 

  

	 	(ll)	 “Retired Participant” means a Participant who ceases to be an employee of the Corporation or an
Affiliate by reason of his or her Retirement; 

  

	 	(mm)	 “Retirement” means, in respect of a Participant, the early or normal retirement of the Participant from
employment with the Corporation or an Affiliate in accordance with the Corporation Policies; 

  

	 	(nn)	 “Return to Service Date” means, in respect of a Participant, the date, following an Unpaid Leave of
Absence, that the Participant recommences the provision of employment services to the Corporation or an Affiliate, in full or in part; 

  

	 	(oo)	 “SAR” means a stock appreciation right granted to a Participant that is represented by a bookkeeping
entry on the books of the Corporation, which entitles the Participant, upon exercise of a Vested SAR, and subject to the terms and conditions of the Plan and the applicable Grant Agreement, to a payment equal to the Appreciation Value;

  

	 	(pp)	 “SAR Period” means, in respect of a particular Vested SAR, the period of time during which such Vested
SAR may be exercised by a Participant, which shall be, subject to Section 8.3, the period of time extending from the Vesting Date of such Vested SAR to the Expiry Date of such Vested SAR; 

 

	 	(qq)	 “Section 409A” means section 409A of the United States Internal Revenue Code of
1986, as amended, and any applicable United States Treasury Regulations and other binding regulatory guidance promulgated thereunder; 

  

	 	(rr)	 “Share” means, in respect of a Non-Canadian Participant, unless
otherwise provided in a Grant Agreement, one or more common shares in the capital of the Corporation as are currently traded on the New York Stock Exchange and, in respect of a Canadian Participant, unless otherwise provided in a Grant Agreement,
one or more common shares of the Corporation as are currently traded on the Toronto Stock Exchange; 

			
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	 	(ss)	 “Short-Term Disability” means, in respect of a Participant, any period of time during which the
Participant receives disability benefits under the Corporation’s or an Affiliate’s short-term disability plans; 

  

	 	(tt)	 “Specified Period” means (i) for a Participant who is an executive officer of the Corporation as
of immediately prior to the Change in Control, 24 months, (ii) for a Participant who is not an executive officer of the Corporation and holds the title of “Vice-President” or above as of immediately prior to the Change in Control, 18
months, and (iii) for any Participant not covered by clauses (i) and (ii), 12 months, in each case, inclusive of the date on which the Change in Control occurs, or, in each case, such longer period specified in the Grant Agreement or as
provided for in any employment agreement, change in control agreement or similar arrangement with the Corporation or an Affiliate to which the Participant is a party as of the Date Employment Ceases; 

 

	 	(uu)	 “Time-Based SAR” means any SAR that is granted to a Participant and designated as a Time-Based SAR
pursuant to Section 4.1; 

  

	 	(vv)	 “Termination Exercise Period” means, in respect of a particular SAR granted to a Participant, the
period of time extending from the Date Employment Ceases to the earlier of: (i) the Close of Business on the 60th Trading Day after the Date Employment Ceases; and (ii) the Expiry Date
of the SAR; 

  

	 	(ww)	 “Termination of Employment” means, in respect of a Participant, an event by which the Participant
ceases to be an employee of the Corporation or an Affiliate but, for greater certainty, shall not include an event whereby the Participant ceases to be an employee of the Corporation or an Affiliate upon the Participant’s death or Retirement or
where the Participant commences Short-Term Disability, Long-Term Disability, a Paid Leave of Absence, an Unpaid Leave of Absence, or Family Leave; 

  

	 	(xx)	 “Trading Day” means, subject to Section 1.4(r), in respect of a
Non-Canadian Participant, unless otherwise specified in a Grant Agreement, a day on which the New York Stock Exchange is open for trading and, in respect of a Canadian Participant, unless otherwise specified
in a Grant Agreement, a day upon which the Toronto Stock Exchange is open for trading; 

  

	 	(yy)	 “Unpaid Leave of Absence” means, in respect of a Participant, a period of time during which, pursuant
to the Corporation Policies or Applicable Law, the Participant is considered to be on a leave of absence and does not continue to receive his or her salary or provide employment services to the Corporation or an Affiliate which, for the purposes of
the Plan, shall be deemed to commence on the “Date of Unpaid Leave of Absence”, being the first day of the Participant’s Unpaid Leave of Absence, as communicated in writing to the Participant by the Corporation or an Affiliate
in accordance with the Corporation Policies; 

  

	 	(zz)	 “US Participant” means a Participant whose income in respect of services performed for the Corporation
or an Affiliate is subject to Section 409A; 

  

	 	(aaa)	 “Vested SAR” has the meaning assigned by Section 4.2; and 

			
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	 	(bbb)	 “Vesting Date” means, in respect of a particular SAR, the date on which the SAR becomes a Vested SAR.

  

	1.5	 Construction and Interpretation 

 

	 	(a)	 In the Plan, references to the masculine include the feminine, and references to the singular shall include the plural
and vice versa, as the context shall require. 

  

	 	(b)	 The Plan shall be governed and interpreted in accordance with the laws of the Province of Alberta and any actions,
proceedings or claims in any way pertaining to the Plan shall be commenced in the courts of the Province of Alberta. 

  

	 	(c)	 If any provision of the Plan or part hereof is determined to be void or unenforceable all or in part, such determination
shall not affect the validity or enforcement of any other provision or part thereof. 

  

	 	(d)	 Headings wherever used herein are for reference purposes only and do not limit or extend the meaning of the provisions
herein contained. A reference to a section or schedule shall, except where expressly stated otherwise, mean a section or schedule of the Plan, as applicable. 

 

	2.	 ADMINISTRATION 

  

	2.1	 Administration by Committee 

 

	 	(a)	 The Plan shall be administered by the Committee. 

 

	 	(b)	 Without limiting the generality of Section 2.1(a), subject to the terms and conditions set forth herein, the
Committee is authorized to grant SARs, determine the time or times when SARs will be granted, vest and be exercisable, determine whether SARs will be subject to any restrictions or conditions, including conditions regarding the financial and other
performance of the Corporation or its Affiliates all on such terms (which may vary between Participants and SARs) as it shall determine. In addition, the Committee shall have full and complete authority to 

 

	 	(i)	 construe and interpret the Plan; 

 

	 	(ii)	 prescribe, amend and rescind rules, regulations or policies relating to the Plan; and 

 

	 	(iii)	 make all other determinations necessary or advisable for the administration of the Plan. 

 

	2.2	 Delegation 

The Committee shall also have the right to delegate the administration and operation of this Plan, in whole or in part, to any director,
officer or employee of the Corporation or an Affiliate. 

			
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	2.3	 Determinations Binding 

All determinations and interpretations made by the Committee shall be binding on all Participants and on their legal personal
representatives and beneficiaries. 
  

	3.	 GRANT OF SARS 

  

	3.1	 Designation of SAR Recipients 

The Committee may from time to time designate individuals who are employees of the Corporation or an Affiliate and to whom, in the
opinion of the Committee, SARs should be granted. 
  

	3.2	 SARs to be Granted in Respect of Future Employment Services 

For greater certainty and notwithstanding anything in the Plan or in a Grant Agreement, a SAR shall be granted solely in respect of the
employment services of a Participant to be rendered subsequent to the Date of Grant to the Corporation and its Affiliates. The Committee may only grant a SAR to a Participant so long as none of the main purposes of such grant is to provide the
Participant with a payment that is in lieu of salary or wages for the Participant for services rendered by such Participant in a previous calendar year. 
  

	3.3	 Grant Agreement 

Each grant of SARs and participation of an employee in the Plan shall be evidenced by a Grant Agreement between the Corporation and the
Participant in the form approved by the Committee. A Participant may hold SARs granted under more than one Grant Agreement at any time. 
  

	3.4	 Terms and Conditions 

Subject to the provisions of the Plan, the Committee shall determine the number of SARs to be granted to each Participant and all other
terms, conditions and limitations of the grant of SARs, including any conditions with respect to the vesting of SARs, in whole or in part, or the payment of cash under the Plan, and any other terms and conditions the Committee may in its discretion
determine, which terms and conditions shall, to the extent not contained in the Plan, be set out in the Grant Agreement. 
  

	3.5	 Base Value 

The Base Value for each SAR that is granted pursuant to the Plan shall be set by the Committee at the Date of Grant but, for greater
certainty and notwithstanding anything in the Plan or in a Grant Agreement, the Base Value of any SAR shall not be less than the Fair Market Value of a Share at the Date of Grant. 

			
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	3.6	 No Value Prior to Vesting  

For greater certainty, no SAR granted hereunder shall have any value prior to becoming a Vested SAR and the commencement of the SAR
Period. 
  

	3.7	 No Certificates 

No certificates shall be issued with respect to SARs. 
  

	3.8	 No Right to Additional SARs 

Each Participant agrees and acknowledges (and shall be conclusively deemed to have so acknowledged and agreed by participating in the
Plan) that nothing in the Plan or a Grant Agreement nor the grant of any SARs hereunder shall be construed to require the Corporation to grant an additional SAR or SARs. The grant of additional SARs by the Corporation shall, in each case, be
evidenced by a new and separate Grant Agreement between the Corporation and the Participant in respect of such additional SARs. 
  

	4.	 VESTING OF SARS 

  

	4.1	 Designation of SARs as Time-Based SARs, Performance SARs, and Bonus SARs 

 

	 	(a)	 The Committee shall specify, at the time SARs are granted to a Participant pursuant to the Plan, whether such SARs are
Time-Based SARs, Performance SARs, Bonus SARs, or a combination thereof. 

  

	 	(b)	 The type (or types) of SARs granted to a Participant, whether Time-Based SARs, Performance SARs and/or Bonus SARs (or,
any combination thereof), shall be determined by the Committee and specified in the Participant’s corresponding Grant Agreement. 

  

	4.2	 Vesting Conditions 

The Committee shall specify, at the time SARs are granted to a Participant pursuant to the Plan, the vesting conditions for such SARs.
If no specific determination is made by the Committee at the time SARs are granted to a Participant, and unless otherwise provided in the Grant Agreement relating to such SARs and subject to Sections 6.3 and 6.4, the SARs shall vest in the
applicable Participant and each shall become a “Vested SAR” in accordance with the following: 
  

	 	(a)	 In respect of the Time-Based SARs granted to a Participant: 

 

	 	(i)	 30 percent of the Time-Based SARs shall vest on the first Anniversary Date; 

 

	 	(ii)	 an additional 30 percent of the Time-Based SARs shall vest on the second Anniversary Date; and

			
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	 	(iii)	 an additional 40 percent of the Time-Based SARs shall vest on the third Anniversary Date; 

 

	 	(b)	 In respect of the Performance SARs granted to a Participant: 

 

	 	(i)	 a number of Performance SARs shall vest on the later of the first Anniversary Date and the day immediately following the
Committee Meeting Date in the year immediately following the First Performance Period equal to: 

  

	 	(A)	 where the Achieved Performance Criteria for the First Performance Period is equal to or less than the Minimum
Performance Criteria, nil; 

  

	 	(B)	 where the Achieved Performance Criteria for the First Performance Period is greater than the Minimum Performance
Criteria but is less than the Median Performance Criteria, the amount calculated in accordance with the following formula: 30 percent of the Performance SARs X (Achieved Performance Criteria – Minimum Performance Criteria); and

  

	 	(C)	 where the Achieved Performance Criteria for the First Performance Period is equal to or greater than the Median
Performance Criteria, 30 percent of the Performance SARs; 

  

	 	(ii)	 an additional number of Performance SARs shall vest on the later of the second Anniversary Date and the day immediately
following the Committee Meeting Date in the year immediately following the Second Performance Period equal to: 

  

	 	(A)	 where the Achieved Performance Criteria for the Second Performance Period is equal to or less than the Minimum
Performance Criteria, nil; 

  

	 	(B)	 where the Achieved Performance Criteria for the Second Performance Period is greater than the Minimum Performance
Criteria but is less than the Median Performance Criteria, the amount calculated in accordance with the following formula: 30 percent of the Performance SARs X (Achieved Performance Criteria – Minimum Performance Criteria); and

  

	 	(C)	 where the Achieved Performance Criteria for the Second Performance Period is equal to or greater than the Median
Performance Criteria, 30 percent of the Performance SARs; 

  

	 	(iii)	 an additional number of Performance SARs shall vest on the later of the third Anniversary Date and the day immediately
following the Committee Meeting Date in the year immediately following the Third Performance Period equal to: 

			
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	 	(A)	 where the Achieved Performance Criteria for the Third Performance Period is equal to or less than the Minimum
Performance Criteria, nil; 

  

	 	(B)	 where the Achieved Performance Criteria for the Third Performance Period is greater than the Minimum Performance
Criteria but is less than the Median Performance Criteria, the amount calculated in accordance with the following formula: 40 percent of the Performance SARs X (Achieved Performance Criteria – Minimum Performance Criteria); and

  

	 	(C)	 where the Achieved Performance Criteria for the Third Performance Period is equal to or greater than the Median
Performance Criteria, 40 percent of the Performance SARs; 

  

	 	(c)	 In respect of the Bonus SARs granted to a Participant: 

 

	 	(i)	 a number of Bonus SARs shall vest on the later of the first Anniversary Date and the day immediately following the
Committee Meeting Date in the year immediately following the First Performance Period equal to: 

  

	 	(A)	 where the Achieved Performance Criteria for the First Performance Period is equal to or less than the Median Performance
Criteria, nil; 

  

	 	(B)	 where the Achieved Performance Criteria for the First Performance Period is greater than the Median Performance Criteria
but is less than the Maximum Performance Criteria, the amount calculated in accordance with the following formula: 30 percent of the Bonus SARs X (Achieved Performance Criteria – Median Performance Criteria); and 

 

	 	(C)	 where the Achieved Performance Criteria for the First Performance Period is equal to or greater than the Maximum
Performance Criteria, 30 percent of the Bonus SARs; 

  

	 	(ii)	 an additional number of Bonus SARs shall vest on the later of the second Anniversary Date and the day immediately
following the Committee Meeting Date in the year immediately following the Second Performance Period equal to: 

  

	 	(A)	 where the Achieved Performance Criteria for the Second Performance Period is equal to or less than the Median
Performance Criteria, nil; 

  

	 	(B)	 where the Achieved Performance Criteria for the Second Performance Period is greater than the Median Performance
Criteria but is less than the Maximum Performance Criteria, the amount calculated in accordance with the following formula: 30 

			
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percent of the Bonus SARs X (Achieved Performance Criteria – Median Performance Criteria); and 

  

	 	(C)	 where the Achieved Performance Criteria for the Second Performance Period is equal to or greater than the Maximum
Performance Criteria, 30 percent of the Bonus SARs; 

  

	 	(iii)	 an additional number of Bonus SARs shall vest on the later of the third Anniversary Date and the day immediately
following the Committee Meeting Date in the year immediately following the Third Performance Period equal to: 

  

	 	(A)	 where the Achieved Performance Criteria for the Third Performance Period is equal to or less than the Median Performance
Criteria, nil; 

  

	 	(B)	 where the Achieved Performance Criteria for the Third Performance Period is greater than the Median Performance Criteria
but is less than the Maximum Performance Criteria, the amount calculated in accordance with the following formula: 40 percent of the Bonus SARs X (Achieved Performance Criteria – Median Performance Criteria); and 

 

	 	(C)	 where the Achieved Performance Criteria for the Third Performance Period is equal to or greater than the Maximum
Performance Criteria, 40 percent of the Bonus SARs. 

  

	4.3	 Waiver by Participant of Vesting 

At the discretion of the Committee, the Committee may specify in any Grant Agreement relating to SARs that the Participant is entitled
to waive vesting of any particular SAR at any time before the date that would otherwise be the Vesting Date of such SAR pursuant to Section 4.2. Where such right has been granted to a Participant in the Grant Agreement, the Grant Agreement
shall specify all terms and conditions pursuant to which the waiver right may be exercised, including the time and manner of the waiver, and the future characterization, treatment and terms and conditions of a SAR, the vesting of which has been
waived pursuant to this Section 4.3 and the applicable Grant Agreement. 
  

	5.	 TERMINATION OF EMPLOYMENT, DISABILITY, LEAVE OF ABSENCE, ETC. 

 

	5.1	 Termination of Employment 

Unless otherwise determined by the Committee, and unless otherwise provided in the Grant Agreement relating to a SAR, upon the
occurrence of a Termination of Employment of a Participant: 
  

	 	(a)	 The Participant shall be entitled to exercise any Vested SARs during the Termination Exercise Period, but only to the
extent that such Vested SARs have 

			
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become Vested SARs pursuant to Sections 4.2, 6.3 or 6.4 on or prior to the Date Employment Ceases; and 

  

	 	(b)	 For greater certainty, notwithstanding Section 4.2, SARs which do not become Vested SARs on or prior to the Date
Employment Ceases shall not thereafter become Vested SARs. 

  

	5.2	 Death or Retirement of Participant 

Unless otherwise determined by the Committee, and unless otherwise provided in the Grant Agreement relating to a SAR, in the event a
Participant ceases to be an employee of the Corporation or an Affiliate by reason of the Participant’s death or Retirement: 
  

	 	(a)	 Where the Participant’s death or Retirement occurs on a date that is prior to the date that the Participant attains
the age of 60 years, then: 

  

	 	(i)	 the Participant shall be entitled to exercise any Vested SARs during the Death or Retirement Exercise Period, but only
to the extent that such Vested SARs have become Vested SARs pursuant to Sections 4.2, 6.3 or 6.4 on or prior to the date of the Participant’s death or Date of Retirement, as applicable; and 

 

	 	(ii)	 for greater certainty, notwithstanding Section 4.2, SARs which do not become Vested SARs on or prior to the date of
the Participant’s death or Date of Retirement, as applicable, shall not thereafter become Vested SARs; 

  

	 	(b)	 Where the Participant’s death or Retirement occurs on or after the date the Participant attains the age of 60 years
but before the date that the Participant attains the age of 65 years, then: 

  

	 	(i)	 Time-Based SARS shall continue to be and become Vested SARs in accordance with the provisions of Section 4.2(a) and
the Participant shall be entitled to exercise any Time-Based SARs which become Vested SARs until the Expiry Date; and 

  

	 	(ii)	 Performance SARs and Bonus SARs shall continue to be and become Vested SARs in accordance with the provisions of
Sections 4.2(b) and (c), respectively, and the Participant shall be entitled to exercise any Performance SARs or Bonus SARs which become Vested SARs until the Expiry Date; 

 

	 	(c)	 Where the Participant’s death or Retirement occurs on or after the date the Participant attains the age of 65
years, then: 

  

	 	(i)	 the Participant shall be entitled, during the period extending from the date of the Participant’s death or Date of
Retirement, as applicable, to the Expiry Date, to exercise in full or in part any unexercised Time-Based SAR (irrespective of whether such SAR has become a Vested SAR in accordance with Section 4.2(a)); and 

			
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	 	(ii)	 Performance SARs and Bonus SARs shall continue to be and become Vested SARs in accordance with the provisions of
Sections 4.2(b) and (c), respectively, and the Participant shall be entitled to exercise any Performance SARs or Bonus SARs which become Vested SARs until the Expiry Date. 

 

	5.3	 Disability of a Participant  

Unless otherwise determined by the Committee, and unless otherwise provided in the Grant Agreement relating to a SAR, in the event of a
Participant’s Short-Term Disability or Long-Term Disability, SARs shall continue to be and become Vested SARs in accordance with the provisions of Section 4.2 and the Participant shall be entitled to exercise any Vested SARs during the
period of such Short-Term Disability or Long-Term Disability and thereafter, unless there occurs a Termination of Employment during such period, in which case the provisions of Section 5.1 shall apply, or unless the Participant’s death or
Retirement occurs during such period, in which case the provisions of Section 5.2 shall apply. 
  

	5.4	 Paid Leave of Absence and Family Leave 

Unless otherwise determined by the Committee, and unless otherwise provided in the Grant Agreement relating to a SAR, in the event a
Participant is on a Paid Leave of Absence or is on Family Leave, SARs shall continue to be and become Vested SARs in accordance with the provisions of Section 4.2 and the Participant shall be entitled to exercise any Vested SARs during the
period of such Paid Leave of Absence or Family Leave and thereafter, unless there occurs a Termination of Employment during such period, in which case the provisions of Section 5.1 shall apply, or unless the Participant’s death or
Retirement occurs during such period, in which case the provisions of Section 5.2 shall apply. 
  

	5.5	 Unpaid Leave of Absence 

Unless otherwise determined by the Committee, and unless otherwise provided in the Grant Agreement relating to a SAR, in the event a
Participant is on an Unpaid Leave of Absence: 
  

	 	(a)	 SARs shall continue to be and become Vested SARs in accordance with the provisions of Section 4.2 during the period
commencing on the Date of Unpaid Leave of Absence and ending on the 31st calendar day following the Date of Unpaid Leave of Absence, unless there occurs a Termination of Employment during such
period, in which case the provisions of Section 5.1 shall apply, or unless the Participant’s death or Retirement occurs during such period, in which case the provisions of Section 5.2 shall apply; 

 

	 	(b)	 Notwithstanding Section 4.2, SARs which do not become Vested SARs on or prior to the 31st calendar day following the Date of Unpaid Leave of Absence shall not become Vested SARs during the balance of the Participant’s Unpaid Leave of Absence, unless the Participant’s death or
Retirement occurs during such period, in which case the provisions of Section 5.2 shall apply; 

			
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	 	(c)	 Notwithstanding Section 4.2, SARs which do not become Vested SARs on or prior to the 31st calendar day following the Date of Unpaid Leave of Absence shall become Vested SARs on the Participant’s Return to Service Date, but only to the extent that such SARs would have become Vested
SARs pursuant to Section 4.2 on or prior to the Return to Service Date if the period of Unpaid Leave of Absence had not occurred and provided that the Return to Service Date occurs prior to the Expiry Date; 

 

	 	(d)	 In the event that a Participant’s Return to Service Date occurs prior to the Expiry Date, any SARs which did not
become Vested SARs on or prior to the 31st calendar day following the Date of Unpaid Leave of Absence or pursuant to Section 5.5(c) shall become Vested SARs solely in accordance with the
provisions of Section 4.2; and 

  

	 	(e)	 From the Date of Unpaid Leave of Absence until the Expiry Date, the Participant shall be entitled to exercise any Vested
SARs which become Vested SARs in accordance with the provisions hereof, unless there occurs a Termination of Employment during such period of Unpaid Leave of Absence, in which case the provisions of Section 5.1 shall apply, or unless the
Participant’s death or Retirement occurs during such period, in which case the provisions of Section 5.2 shall apply. 

  

	5.6	 Forfeiture and Termination of SARs 

Except as provided for in Sections 6.3 or 6.4, unless otherwise determined by the Committee, and unless otherwise provided in the Grant
Agreement relating to a SAR, and subject to the passing by the Committee of a resolution pursuant to Sections 6.1 or 6.2: 
  

	 	(a)	 A Performance SAR which does not become a Vested SAR by a Vesting Date contemplated in Section 4.2(b) as a result
of the Achieved Performance Criteria for the particular Performance Period being equal to or less than the Minimum Performance Criteria shall be forfeited by the Participant and shall terminate on the day that would otherwise be the Vesting Date for
such Performance SAR and, thereafter, the Participant will have no further right, title or interest in such Performance SAR; 

  

	 	(b)	 A Bonus SAR which does not become a Vested SAR by a Vesting Date contemplated in Section 4.2(c) as a result of the
Achieved Performance Criteria for the particular Performance Period being equal to or less than the Median Performance Criteria shall be forfeited by the Participant and shall terminate on the day that would otherwise be the Vesting Date for such
Bonus SAR and, thereafter, the Participant will have no further right, title or interest in such Bonus SAR; 

  

	 	(c)	 Unless previously forfeited in accordance with the provisions hereof, upon the occurrence of a Participant’s
Termination of Employment, SARs which have not become Vested SARs on or prior to the Date Employment Ceases shall be forfeited by the Participant and shall terminate on the Date Employment Ceases and, thereafter, the Participant will have no further
right, title or interest in such SARs; 

			
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	 	(d)	 Upon the occurrence of a Participant’s Termination of Employment, Vested SARs which are not exercised by the end of
the Termination Exercise Period shall be forfeited by the Participant and shall terminate on the last day of the Termination Exercise Period and, thereafter, the Participant will have no further right, title or interest in such Vested SARs;

  

	 	(e)	 Where a Participant ceases to be an employee of the Corporation or an Affiliate by reason of the Participant’s
death or Retirement on a date that is prior to the date that the Participant attains the age of 60 years, unless previously forfeited in accordance with the provisions hereof, SARs which have not become Vested SARs on or prior to the date of death
or Date of Retirement, as applicable, shall be forfeited by the Participant and shall terminate on the date of death or Date of Retirement, as applicable, and, thereafter, the Participant will have no further right, title or interest in such SARs;

  

	 	(f)	 Where a Participant ceases to be an employee of the Corporation or an Affiliate by reason of the Participant’s
death or Retirement on a date that is prior to the date that the Participant attains the age of 60 years, Vested SARs which are not exercised by the end of the Death or Retirement Exercise Period shall be forfeited by the Participant and shall
terminate on the last day of the Death or Retirement Exercise Period and, thereafter, the Participant will have no further right, title or interest in such Vested SARs; 

 

	 	(g)	 On the Expiry Date, any SAR which has not been exercised or otherwise forfeited and terminated pursuant to the
provisions hereof shall expire and be of no further force or effect whatsoever; and 

  

	 	(h)	 After the occurrence of any of the events in Sections 5.6(a) – (g), the Grant Agreement shall terminate and
be of no further force or effect whatsoever with respect to those SARs which have been forfeited and terminated or have expired and the Participant shall have no cause of action nor make any claim against the Corporation or any Affiliate for damages
or for loss of opportunity arising from the forfeiture and termination or expiry of such SARs or the termination of the Grant Agreement insofar as it relates to such SARs pursuant to this Section 5.6. 

 

	6.	 EARLY EXERCISE AND ACCELERATED VESTING 

 

	6.1	 Extension of Performance Period 

Notwithstanding any other provision of the Plan, prior to the date on which a Performance Period in respect of a particular Performance
SAR or Bonus SAR ends, the Committee may pass a resolution which extends such Performance Period; provided that, subject to Section 8.3, no such extension shall be past the Close of Business on the seventh anniversary of the Date of Grant of
such SAR; and further provided that no such extension shall be made if such extension would result in any adverse Canadian or US federal income tax consequences. 
  

	6.2	 Waiver of Vesting Conditions 

			
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 Notwithstanding any other provision of the Plan, the Committee may, at any time prior
to the Vesting Date of a particular Performance SAR or Bonus SAR, pass a resolution which waives, in whole or in part, the requirements of Section 4.2 that there be a specified Achieved Performance Criteria prior to a Performance SAR or Bonus
SAR becoming a Vested SAR. 
  

	6.3	 Accelerated Vesting 

Notwithstanding any other provision of the Plan, but subject to Section 6.4, the Committee may pass a resolution which accelerates
the vesting of a SAR and which permits a Participant to exercise in full or in part any unexercised SAR, whether or not the SAR has otherwise become a Vested SAR, at such time or times and/or in such manner following the passing of such resolution
as is specified in the resolution, which resolution may be passed for any reason as determined by the Committee which, in the sole opinion of the Committee, warrants altering the provisions pursuant to which a SAR vests or is exercisable. 

 

	6.4	 Accelerated Vesting on Change in Control 

 

	 	(a)	 With respect to SARs granted to a Participant prior to February 14, 2018, notwithstanding any other provision of
the Plan, in the event of a Change in Control, (i) all Time-Based SARs, Performance SARs and Bonus SARs credited to the Participant that are outstanding and are not Vested SARs immediately prior to such Change in Control shall become Vested
SARs immediately prior to the occurrence of a Change in Control, with, if applicable, the Achieved Performance Criteria in respect of the applicable Performance Period deemed to be (x) in the case of Performance SARs, the Median Performance
Criteria, and (y) in the case of Bonus SARs, the Maximum Performance Criteria, and (ii) such Participant shall be entitled, commencing as of the time immediately prior to the occurrence of a Change in Control, to exercise in full or in
part all Vested SARs (including, but not limited to, those SARs that became vested pursuant to Section 6.4(a)(i)) during the SAR Period in accordance with Section 8. 

 

	 	(b)	 With respect to SARs granted to the Participant on or after February 14, 2018, notwithstanding any other provision
of the Plan, in the event of a Change in Control: 

  

	 	(i)	 all Time-Based SARs, Performance SARs and Bonus SARs credited to the Participant that are outstanding and are not Vested
SARs immediately prior to such Change in Control shall become Vested SARs immediately prior to the occurrence of a Change in Control, with, if applicable, the Achieved Performance Criteria in respect of the applicable Performance Period deemed to be
(x) in the case of Performance SARs, the Median Performance Criteria, and (y) in the case of Bonus SARs, the Maximum Performance Criteria, and such Participants shall be entitled, commencing as of the time immediately prior to the
occurrence of a Change in Control, to exercise in full or in part such Vested SARs during the SAR Period, except to the extent that an award of Time-Based SARs, Performance SARs and Bonus SARs, as the case may be, meeting the requirements set out
below in this Section 6.4(b)(i) (such award, a “Replacement Award”) is provided to the Participant to replace such 

			
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award of SARs (each award of SARs intended to be replaced by a Replacement Award, a “Replaced Award”) effective on or immediately after the time of such Change in Control. An
award of SARs shall meet the requirements of this Section 6.4(b)(i) (and hence qualify as a Replacement Award) if (A) it has an intrinsic value equal to the intrinsic value of the Replaced Award as of the date of the Change in Control,
(B) it relates to publicly traded equity securities of the Corporation, the entity surviving the Corporation following the Change in Control or the parent company of such surviving entity, (C) it contains terms relating to vesting that are
substantially identical to those of the Replaced Award (except that for any Replaced Award that is performance-based, the Replacement Award shall be subject solely to time-based vesting for the remainder of the applicable Performance Period (or such
shorter period as determined by the Committee) and the Achieved Performance Criteria in respect of the applicable Performance Period shall be deemed to be (x) in the case of Performance SARs, the Median Performance Criteria, and (y) in the
case of Bonus SARs, the Maximum Performance Criteria), and (D) its other terms and conditions are not less favorable to the Participant than the terms and conditions of the Replaced Award (including the provisions that would apply in the event
of a subsequent Change in Control) as of the date of the Change in Control. Without limiting the generality of the foregoing, a Replacement Award may take the form of a continuation of the applicable Replaced Award if the requirements of the
preceding sentence are satisfied. If a Replacement Award is granted, the Replaced Award shall not immediately vest prior to the occurrence of the Change in Control giving rise to the replacement. The determination whether the conditions of this
Section 6.4(b)(i) are satisfied shall be made by the Committee, as constituted immediately before the Change in Control, in its sole discretion. All SARs that become Vested SARs pursuant to this Section 6.4(b)(i) shall entitle the
Participant, commencing as of the time immediately prior to the occurrence of the Change in Control, to exercise in full or in part such Vested SARs during the SAR Period in accordance with Section 8. 

 

	 	(ii)	 Notwithstanding any other provision of this Plan to the contrary, upon the Participant’s Termination of Employment
by the Corporation or an Affiliate, as applicable, without CIC Cause, or by the Participant for Good Reason, within the Specified Period following a Change in Control, all Replacement Awards held by such Participant shall become Vested SARs
immediately prior to the time of such Termination of Employment, and such Participant shall be entitled, as of the time immediately prior to such Termination of Employment, to exercise in full or in part all Vested SARs (including, but not limited
to, those SARs that became vested pursuant to this Section 6.4(b)(ii)) during the SAR Period in accordance with Section 8. For clarity, in this Section 6.4(b)(ii), the defined terms “Vested SARs” and “SAR Period”
shall be deemed to apply, mutatis mutandis, to Replacement Awards that are not a continuation of Replaced Awards. 

			
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	7.	 EFFECTS OF ALTERATION OF SHARE CAPITAL 

 

	7.1	 General 

In the event of any change in the Shares by reason of any stock dividend, split, recapitalization, merger, consolidation, combination or
exchange of shares or other similar corporate change, equitable adjustments may be made in: (i) the number of SARs, (ii) in the manner of determining the Base Value, Fair Market Value and Appreciation Value of the SARs, (iii) the type
of SAR, and (iv) the SAR Period. The Committee shall determine which adjustments shall be made in any such event in its sole discretion and its determination shall be conclusive and binding for all purposes of the Plan and any applicable Grant
Agreement; provided that such adjustments shall not result in any adverse Canadian or United States federal income tax consequences. 
  

	8.	 METHOD OF EXERCISE OF SARS 

 

	8.1	 Exercise of SAR 

Each Vested SAR may be exercised, during the SAR Period (unless terminated earlier pursuant to the provisions of the Plan or the Grant
Agreement), by a Participant (or, in the event of the Participant’s death or incapacity, by the Participant’s duly appointed legal guardian or legal personal representative) in a manner prescribed by the Corporation from time to time as
published on the Corporation’s internal employee website or otherwise communicated in writing to the Participant from time to time. 
  

	8.2	 Exercises only during SAR Period 

For greater certainty, no SAR may be exercised after the expiry of the SAR Period. 

 

	8.3	 Blackout Period 

Notwithstanding Section 8.2, if the SAR Period of a SAR expires during, or within ten (10) business days following a Blackout
Period, then the SAR Period of such SAR shall be extended to the date which is ten (10) business days after the last day of the Blackout Period, after which time such SAR shall expire and terminate; provided that, under no circumstances, shall
the SAR Period for a SAR granted or held by a Canadian Participant extend beyond December 15th of the calendar year containing the Vesting Date of such SAR; and further provided that the SAR
Period for a SAR granted or held by a US Participant shall not be extended under this Section 8.3 if and to the extent that such extension would cause the acceleration of taxes due or the imposition of additional taxes by operation of
Section 409A. 
  

	8.4	 Payment in Respect of SAR 

 

	 	(a)	 Subject to Section 8.4(b) and (c), as soon as practicable after a Participant has exercised a Vested SAR, the
Participant will be paid the Appreciation Value of that SAR, in cash, less any applicable tax or other source withholdings. 

			
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	 	(b)	 The Corporation may, in its sole discretion, elect to satisfy, in whole or part, the cash payment obligation in
Section 8.4(a) by instructing an independent broker to acquire a number of fully paid Shares on the open market on behalf of the Participant the number of such Shares being the result obtained when the amount of cash which would have otherwise
been paid pursuant to Section 8.4(a) is divided by an amount equal to the closing price per Share, in respect of a Non-Canadian Participant, unless otherwise specified in a Grant Agreement, on the New
York Stock Exchange and, in respect of a Canadian Participant, unless otherwise specified in a Grant Agreement, on the Toronto Stock Exchange, on the last Trading Day immediately preceding the date of payment. In such a case, the independent broker
will purchase such Shares on the open market as soon as practicable thereafter and within the limits imposed by Section 8.4(c), if applicable, and the broker will deliver such Shares to the Participant. The Corporation will pay all brokerage
fees arising in connection with the acquisition of the Shares of the Corporation by the broker on the open market. Notwithstanding the foregoing or any other provision of the Plan, in respect of Vested SARs, the Corporation shall not elect to
satisfy, in whole or part, the cash payment obligation in Section 8.4(a) with Shares delivered to the Participant as it relates to any SARs originally granted to the Participant after May 2, 2017 unless all approvals of such SARs and/or
the issuance of Shares in settlement of such SARs, by shareholders or otherwise, as are required under Applicable Laws, are received prior to the applicable Vesting Date. 

 

	 	(c)	 For greater certainty, any amount payable to a Canadian Participant in respect of the exercise of a Vested SAR shall be
paid no later than December 31 of the calendar year in which such SAR was exercised. 

  

	 	(d)	 All payments and benefits under the Plan shall, in respect of a Non-Canadian
Participant, unless otherwise specified in a Grant Agreement, be determined and paid in the lawful currency of the United States and, in respect of a Canadian Participant, unless otherwise specified in a Grant Agreement, be determined and paid in
the lawful currency of Canada. 

  

	 	(e)	 Thereafter, for greater certainty, such number of Vested SARs as are exercised shall be cancelled and terminated and the
Participant will have no further right, title or interest in such exercised SARs. 

  

	9.	 NO OTHER RIGHTS 

  

	9.1	 No Rights of Shareholder 

SARs are not Shares and no SAR granted hereunder shall entitle any Participant to any Shares in the capital of the Corporation. For
greater certainty, a Participant shall not have the right or be entitled to exercise any voting rights, receive dividends or have or be entitled to any other rights of a shareholder of the Corporation with respect to any SAR held. 

 

	9.2	 No Right to Employment 

			
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 Nothing in the Plan or any SAR shall constitute or be construed to constitute or be
evidence of an agreement or understanding, express or implied, on the part of the Corporation or an Affiliate to retain the Participant in the Participant’s employment for any specific period or in any specific capacity or position or affect in
any way the right of the Corporation or an Affiliate to terminate the employment of the Participant. 
  

	9.3	 No Rights Unless Vested SARs Exercised 

For greater certainty, no Participant or any other person claiming through a Participant shall be entitled to any benefit hereunder in
respect of any SARs prior to the date on which such SARs become Vested SARs and are exercised. 
  

	10.	 GENERAL 

  

	10.1	 Compliance with Applicable Law  

Each Participant acknowledges and agrees (and shall be conclusively deemed to have so acknowledged and agreed by participating in the
Plan) that the Participant will, at all times, act in strict compliance with Applicable Law and all Corporation Policies applicable to the Participants in connection with the Plan. Such Applicable Law and Corporation Policies shall include, without
limitation, those governing “insiders” of “reporting issuers” as those terms are construed for the purposes of applicable securities laws, regulations and rules. 

 

	10.2	 Subject to Applicable Law 

The Corporation’s grant of any SAR and the obligation to make any payments under the Plan or a Grant Agreement is subject to
compliance with Applicable Law. As a condition of participating in the Plan, each Participant agrees to comply with all such Applicable Law and agrees to furnish to the Corporation all information and undertakings as may be required to permit
compliance with Applicable Law. 
  

	10.3	 Withholdings 

  

	 	(a)	 The Corporation or any Affiliate may withhold or cause to be withheld from any amount payable to a Participant, either
under the Plan, a Grant Agreement, or otherwise, such amount as may be necessary so as to ensure that the Corporation or any Affiliate, as applicable, will be able to comply with the applicable provisions of any federal, provincial, state or local
law relating to the withholding of tax or other required deductions, including on the amount, if any, includable in the income of a Participant. 

  

	 	(b)	 Each Participant acknowledges and agrees (and shall be conclusively deemed to have so acknowledged and agreed by
participating in the Plan) that all taxes which may be payable by the Participant as a result of the grant, holding or exercise of the SARs are the Participant’s sole responsibility. 

			
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	10.4	 Amendment and Termination 

 

	 	(a)	 Subject to Applicable Law and to Sections 10.4(b) and (c), the Board (or the Committee, as applicable) may, at any time,
suspend, terminate, amend or revise the Plan, the terms of any Grant Agreement, or the terms of any SAR granted, provided, however, that, no such amendment may, except with the consent of a Participant, alter or impair any SAR previously granted to
such Participant under the Plan. The Board (or the Committee, as applicable) may, with the consent of the Participant, cancel the unexercised balance of an SAR. 

 

	 	(b)	 Notwithstanding Section 10.4(a), the Board (or the Committee, as applicable) shall retain the power and authority
to amend or modify the Plan and any Grant Agreement entered into hereunder to the extent the Committee in its sole discretion deems necessary or advisable to comply with any guidance issued under Section 409A. Such amendments may be made
without the approval of any US Participant. 

  

	 	(c)	 Notwithstanding Section 10.4(a), no amendment may be made to the Plan, a Grant Agreement, or the terms of any SAR
granted to a Canadian Participant which would result in a material risk (as determined by the Corporation or its advisors, in their sole discretion) that the Plan or any SARs granted thereunder would constitute a “salary deferral
arrangement” within the meaning of subsection 248(1) of the Income Tax Act (Canada), or any successor provision thereto. 

  

	10.5	 Administration Costs 

Except as otherwise provided herein, the Corporation will be responsible for all costs relating to the administration of the Plan and
any SARs granted thereunder. 
  

	10.6	 Assignment 

No SAR or any other rights conferred by a SAR or the Plan or a Grant Agreement is assignable, negotiable or otherwise transferable by
any Participant other than by will or the laws of descent and distribution. All SARs are exercisable only during the Participant’s lifetime and only by the Participant, except in the event of the Participant’s death or incapacity, in which
case the SAR may be exercised by the Participant’s duly appointed legal guardian or legal personal representative. 
  

	10.7	 Unfunded Obligation 

The Plan shall be an unfunded obligation of the Corporation and its Affiliates. Neither the establishment of the Plan nor the grant of
any SARs or the setting aside of any funds by the Corporation or an Affiliate, as the case may be, (if, either in their sole discretion, choose to do so) shall be deemed to create a trust. Legal and equitable title to any funds set aside for the
purposes of the Plan shall remain in the Corporation or the Affiliate, as the case may be, and no Participant shall have any security or other interest in such funds. Any funds so set aside shall remain subject to the claims of creditors of the
Corporation or the Affiliate, as the case may be, present or future. Amounts payable to any Participant under the Plan shall be a general, unsecured obligation of the 

			
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Corporation or Affiliate, as the case may be. The right of the Participant to receive payment pursuant to the Plan shall be no greater than the right of other unsecured creditors of the
Corporation or Affiliate, as the case may be. 
  

	10.8	 No Representation as to Price 

Neither the Corporation nor any Affiliate makes any representation or gives any warranty as to the Fair Market Value of the Shares and
shall not be held liable for any fluctuation in the value of the Shares either before or after the exercise of any SAR or other right conferred under the Plan. 
  

	10.9	 Compliance with Section 409A 

Notwithstanding any provision of the Plan to the contrary, it is intended that the provisions of the Plan comply with, or be exempt
from, Section 409A, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. Each US Participant is solely responsible and liable for
the satisfaction of all taxes and penalties that may be imposed on or for the account of such US Participant in connection with the Plan or any other Plan maintained by the Corporation or an Affiliate (including any taxes and penalties under
Section 409A), and neither the Corporation nor any Affiliate shall have any obligation to indemnify or otherwise hold such US Participant (or any beneficiary) harmless from any or all of such taxes or penalties. 

* * * *

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