Document:

EX-10.10

 Exhibit 10.10 
  

 
 PERFORMANCE SHARE UNIT PLAN FOR EMPLOYEES 

OF ENCANA CORPORATION 
 Amended and restated
with effect from January 1, 2010, 
 and reflective with amendments made as of July 20, 2010, February 24, 2015, February 22, 2016
and February 14, 2018 

 TABLE OF CONTENTS 
  

							
	 Section
	 	 	  	Page	 
			
	 1.
	 	 PREAMBLE AND DEFINITIONS
	  	 	1	 
			
	 2.
	 	 CONSTRUCTION AND INTERPRETATION
	  	 	10	 
			
	 3.
	 	 EFFECTIVE DATE AND EMPLOYMENT RIGHTS
	  	 	11	 
			
	 4.
	 	 PSU GRANTS AND PERFORMANCE PERIODS
	  	 	11	 
			
	 5.
	 	 ACCOUNTS, DIVIDEND EQUIVALENTS AND REORGANIZATION
	  	 	12	 
			
	 6.
	 	 OPTIONAL FUNDING OF PSU AWARDS
	  	 	13	 
			
	 7.
	 	 ELIGIBLE PSUs AND PERFORMANCE CRITERIA
	  	 	14	 
			
	 8.
	 	 VESTING AND PAYMENT OF PSU AWARDS
	  	 	14	 
			
	 9.
	 	 CURRENCY
	  	 	20	 
			
	 10.
	 	 SHAREHOLDER RIGHTS
	  	 	20	 
			
	 11.
	 	 ADMINISTRATION
	  	 	21	 
			
	 12.
	 	 ASSIGNMENT
	  	 	23	 

 PERFORMANCE SHARE UNIT PLAN FOR EMPLOYEES 

OF ENCANA CORPORATION 
 (Amended and restated
with effect from January 1, 2010, 
 and reflective with amendments made as of 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 “Performance Share Unit Plan for Employees of Encana Corporation”.

  

	 	1.2	 Purpose of the Plan. 

The purposes of the Plan are: 
  

	 	(a)	 to promote an alignment of interests between employees and shareholders of the Corporation; 

 

	 	(b)	 to associate a portion of eligible employees’ compensation with the performance of the Corporation over the medium
to longer term; and 

  

	 	(c)	 to attract and retain employees with the knowledge, experience and expertise required by the Corporation.

  

	 	1.3	 Definitions. 

 

	 	1.3.1	 “Achieved Performance Criteria” means the Performance Criteria which have been satisfied, as, when and
to the extent 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 Participant who has retired, or to the legal representative of a Participant who is deceased) of the Corporation and its Affiliates. 

  

	 	1.3.2	 “Affiliate” means any corporation, partnership or other entity in which the Corporation, directly or
indirectly, has a majority ownership interest. 

  

	 	1.3.3	 “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 Stock Exchange Rules. 

 

	 	1.3.4	 “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). 

  

	 	1.3.5	 “Board” means the Board of Directors of the Corporation. 

			
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	 	1.3.6	 “Business Day” means any day other than a Saturday or a Sunday, a statutory holiday in Alberta or any
day on which the principal chartered banks located in Calgary are not open for business during normal banking hours. 

  

	 	1.3.7	 “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 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. 

 

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

  

	 	(a)	 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 1.3.8(a), 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 1.3.8(b)(1), 1.3.8(b)(2) and 1.3.8(b)(3); 

  

	 	(b)	 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 

			
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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, 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;

  

	 	(c)	 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

  

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

 For the purposes of this Section 1.3.8: 

 

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

			
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	 	(b)	 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 PSUs 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 1.3.8. 

 

	 	1.3.9	 “Change in Control Value” has the meaning set out in Section 8.5.1(b). 

 

	 	1.3.10	 “Code” means the United States Internal Revenue Code, as amended from time to time.

  

	 	1.3.11	 “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 appointed by the Board to, among other things, interpret, administer and implement the Plan, including any corresponding Grant Agreement. Any reference in this Plan or corresponding Grant
Agreement to action by the Committee means action by or under the authority of: (i) the Committee; or (ii) if no such Committee has been designated, or such authority has not been delegated by the Board, the Board. 

 

	 	1.3.12	 “Committee Meeting Date” means the date of the meeting of the Committee held to review matters related
to the PSUs, including the Committee’s determination of whether and, where applicable, 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 applicable Performance Period. 

  

	 	1.3.13	 “Corporation” means Encana Corporation and any successor corporation whether by amalgamation, merger or
otherwise. 

  

	 	1.3.14	 “Corporation Policies” means, at a particular time, the applicable policies, plans and practices of the
Corporation or an Affiliate, as applicable, which employs the Participant, as published on the Corporation’s or an Affiliate’s, as applicable, internal website or as otherwise communicated to employees of the Corporation or an Affiliate,
as applicable from time to time. 

  

	 	1.3.15	 “Date Employment Ceases” means: 

			
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	 	(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 regular salary, on the payroll of the Corporation or an Affiliate; 

  

	 	(ii)	 in the case of involuntary Termination of Employment 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 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; 

 

	 	(iv)	 in the case where the Participant is employed by an Affiliate and for any reason including, without limitation, by
reason of the 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; 

  

	 	 	 but, for greater certainty, 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 a Period of Absence or an Unpaid Leave of Absence in accordance with the provisions hereof. 

 

	 	1.3.16	 “Date of Retirement” means the last day the Participant is, for the purposes of receiving his regular
salary, on the payroll of the Corporation or an Affiliate immediately prior to the date the Participant commences Retirement. 

  

	 	1.3.17	 “Disability” means the Participant’s physical or mental incapacity that prevents the Participant
from substantially fulfilling his duties and responsibilities on behalf of the Corporation or an Affiliate, and in respect of which the Participant commences receiving disability benefits under the Corporation’s or an Affiliate’s
short-term or long-term disability plan, as applicable, in respect of such incapacity. 

  

	 	1.3.18	 “Dividend Equivalent PSU” has the meaning set out in Section 5.2. 

 

	 	1.3.19	 “Eligible PSUs” means, in respect of a grant of PSUs under this Plan,

			
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those PSUs that are determined by the Committee as being eligible to vest on the Vesting Date pursuant to Sections 7 and 8, based upon the Corporation’s achievement of the Performance
Criteria in respect of a particular Performance Period, as set out in the applicable, Grant Agreement. 

  

	 	1.3.20	 “Eligible PSU Amount” means, where applicable, the notional value of the Eligible PSUs (including any
related Dividend Equivalent PSUs), as determined by the Committee, credited by the Corporation to the Participant’s PSU Account in respect of a particular Performance Period in accordance with Section 7, which amount shall be used to
determine the value of any Vested PSUs relating to such Performance Period which may vest and become payable to the Participant on the Vesting Date in accordance with Section 8. 

 

	 	1.3.21	 “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 Affiliate. 

  

	 	1.3.22	 “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 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 

			
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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. 

 

	 	1.3.23	 “Grant Agreement” means an agreement between the Corporation and the Participant under which a PSU is
granted, as contemplated by Section 4.1, together with such schedules, amendments, deletions or changes thereto as are permitted under the Plan, subject to the terms and conditions of such Grant Agreement and the Plan. 

 

	 	1.3.24	 “Grant Date” means the effective date of a grant of PSUs to a Participant by the Corporation or an
Affiliate, as applicable, as stated in the Participant’s applicable Grant Agreement. Where the Corporation determines to grant any PSUs on a date which is within a Blackout Period or where, for any reason: (i) the grant of PSUs falls on a
day that is within a Blackout Period; or (ii) the Market Value of the grant of PSUs would be calculated using a Trading Day that is within a Blackout Period, then the Grant Date of any such PSUs shall automatically occur and be effective on the
sixth Trading Day immediately following the end of such Blackout Period to permit the Market Value of such PSUs to be determined based on Trading Days which occur immediately following the end of any such Blackout Period. 

 

	 	1.3.25	 “Market Value” means, with respect to any particular date, the volume-weighted average (rounded to two
decimal places) of the trading price per Share on the applicable Stock Exchange during the immediately preceding five (5) Trading Day period prior to that particular date. 

 

	 	1.3.26	 “Maximum Performance Criteria” means, in respect of each PSU grant under this Plan, the maximum
Performance Criteria applicable to a Performance Period, as determined by the Committee, and as set forth in the applicable Grant Agreement. 

  

	 	1.3.27	 “Median Performance Criteria” means, in respect of each PSU grant under this Plan, the median
Performance Criteria applicable to a Performance Period, as determined by the Committee, and as set forth in the applicable Grant Agreement. 

			
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	 	1.3.28	 “Military Leave” means a period during which, pursuant to the Corporation Policies or Applicable Law,
the Participant is considered to be on a military leave, and does not provide employment services to the Corporation or an Affiliate. 

  

	 	1.3.29	 “Minimum Performance Criteria” means, in respect of each PSU grant under this Plan, the minimum
Performance Criteria applicable to a Performance Period, as determined by the Committee, and as set forth in the applicable Grant Agreement. 

  

	 	1.3.30	 “Paid 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 an approved leave of absence and continues to receive his salary from, but does not provide employment services to, the Corporation or an Affiliate.

  

	 	1.3.31	 “Participant” means such employee of the Corporation or an Affiliate as the Committee may
designate from time to time as eligible to participate in the Plan. 

  

	 	1.3.32	 “Performance Criteria” means, in respect of a PSU, the performance criteria as determined by the
Committee as being applicable to a grant of a PSU under the Plan, and as set forth in the applicable Grant Agreement. 

  

	 	1.3.33	 “Performance Period” means, in respect of a grant of a PSU, the particular designated period of time in
respect of which the Performance Criteria is assessed and may be determined by the Committee to be satisfied in order for such PSU to become an Eligible PSU pursuant to Section 7 and a Vested PSU pursuant to Section 8, and as set forth in
the applicable Grant Agreement. 

  

	 	1.3.34	 “Period of Absence” means, with respect to a Participant, a period of time throughout which the
Participant is on a Family Leave, Military Leave, Paid Leave of Absence, an unpaid leave of absence of 31 days or less approved by the Corporation or Affiliate, as applicable, or is experiencing a Disability, but does not include a period of time
throughout which the Participant is on an Unpaid Leave of Absence. 

  

	 	1.3.35	 “Plan” means this amended and restated Performance Share Unit Plan for Employees of Encana Corporation,
including any schedules or appendices hereto, as amended from time to time. 

  

	 	1.3.36	 “PSU” means a performance share unit granted to a Participant under the Plan that is represented by a
bookkeeping entry on the books of the Corporation or an Affiliate, the value of which shall be determined in accordance with the Plan and the applicable Grant Agreement. 

 

	 	1.3.37	 “PSU Account” has the meaning set out in Section 5.1. 

 

	 	1.3.38	 “Retirement” means the early or normal retirement of the Participant from

			
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employment with the Corporation or an Affiliate, as applicable, in accordance with the Corporation Policies. 

 

	 	1.3.39	 “Section 409A Amount” means any cash or Shares provided or to be provided pursuant
to the Plan or a Grant Agreement that: (a) are provided or are to be provided to a U.S. Participant; and (b) constitute a deferral of compensation subject to section 409A of the Code. 

 

	 	1.3.40	 “Share” means a common share in the capital of the Corporation and such other share as may be
substituted for it as a result of amendments to the articles of the Corporation, arrangement, re-organization or otherwise, including any rights that form a part of the common share or substituted share.

  

	 	1.3.41	 “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. 

 

	 	1.3.42	 “Stock Exchange” means, in respect of a PSU, the Toronto Stock Exchange or the New York Stock Exchange
as specified in the Participant’s respective Grant Agreement relating to such PSU or, if the Shares are not listed on the Toronto Stock Exchange or the New York Stock Exchange, as applicable, such other stock exchange on which the Shares are
listed, or if the Shares are not listed on any stock exchange, then on the over-the-counter market. 

 

	 	1.3.43	 “Stock Exchange Rules” means, in respect of a PSU, the applicable rules of the particular Stock
Exchange pertaining to such PSU, as specified in the Participant’s Grant Agreement, upon which the Shares are listed. 

  

	 	1.3.44	 “Termination of Employment” means an event by which the Participant ceases to be an employee of the
Corporation or an Affiliate, as applicable, but, for greater certainty, shall not include an event whereby the Participant ceases to be an employee of the Corporation or an Affiliate, as applicable, upon the Participant’s death or Retirement or
where the Participant commences a Period of Absence or an Unpaid Leave of Absence in accordance with the provisions hereof. 

  

	 	1.3.45	 “Trading Day” means any date on which the applicable Stock Exchange is open for the trading of Shares
and on which Shares are actually traded. 

  

	 	1.3.46	 “Trust Fund” means one or more trust funds, as specified by the

			
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Committee, as may be established by the Corporation or an Affiliate, as applicable, for the purpose of funding awards of PSUs granted to Participants pursuant to the Plan. 

 

	 	1.3.47	 “Trustee” means such person or persons who is or are independent from and not affiliated with the
Corporation or an Affiliate as may from time to time be appointed by the Corporation as trustee of the Trust Fund(s). 

  

	 	1.3.48	 “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 by the Corporation or an Affiliate, as applicable, to be on an approved leave of absence and does not continue to receive his salary from, or provide employment services to,
the Corporation or an Affiliate, as applicable, which, for the purposes of the Plan, shall be deemed to commence on the 32nd day following the day on which the Participant commences such approved,
unpaid leave, as communicated in writing to the Participant by the Corporation or an Affiliate, as applicable, in accordance with the Corporation Policies or Applicable Law. 

 

	 	1.3.49	 “U.S. Participant” means a Participant who is a citizen or permanent resident of the United States for
purposes of the Code or a Participant for whom compensation subject to deferral under this Plan would otherwise be subject to United States federal income taxation under the Code. 

 

	 	1.3.50	 “Vested PSUs” has the meaning set out in Section 8.1. 

 

	 	1.3.51	 “Vesting Date” means, in respect of a grant of PSUs, the date specified in the Participant’s
applicable Grant Agreement upon which the Participant’s Eligible PSUs shall vest and become payable in accordance with Section 8, subject to the terms and conditions of the Plan and the applicable Grant Agreement. 

 

	2.	 CONSTRUCTION AND INTERPRETATION 

 

	 	2.1	 Gender, Singular, Plural. 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. 

  

	 	2.2	 Governing Law. The Plan shall be governed and interpreted in accordance with the laws of the
Province of Alberta and any actions, proceedings or claims pertaining in any manner or respect to the Plan, including without limitation, an applicable Grant Agreement or a PSU grant in respect thereof, shall be commenced in the courts of the
Province of Alberta. 

  

	 	2.3	 Severability. If any provision or part of the Plan is determined to be void or unenforceable in
whole or in part, such determination shall not affect the validity or enforcement of any other provision or part thereof. 

			
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	 	2.4	 Headings, Sections. 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. 

 

	3.	 EFFECTIVE DATE AND EMPLOYMENT RIGHTS 

 

	 	3.1	 Effective Date. The Corporation is amending and restating the Plan effective January 1, 2010.

  

	 	3.2	 No Employment Rights. Nothing contained in the Plan shall be deemed to give any person the right to
be retained as an employee or an officer of the Corporation or of an Affiliate. For greater certainty, a period of notice, if any, (whether pursuant to statute or common law) or payment in lieu thereof, arising upon or attributed to a Termination of
Employment, whether wrongful or otherwise, shall not be considered as extending the period of employment or the active service of a Participant with the Corporation or an Affiliate beyond the Date Employment Ceases. 

 

	4.	 PSU GRANTS AND PERFORMANCE PERIODS 

 

	 	4.1	 Annual Grant of PSUs. Each Participant may receive in respect of a calendar year, a grant of PSUs
in such number and subject to such Performance Criteria, Performance Period(s) and other terms and conditions as the Committee may specify. Each PSU grant to a Participant shall be governed by and subject to the terms and conditions of this Plan and
the applicable Grant Agreement. 

  

	 	4.2	 Grant Agreement. Each PSU grant and each Participant’s participation in the Plan shall be evidenced
by a Grant Agreement between the Corporation and the Participant in the form approved by the Committee. The Grant Agreement shall specify, at the time PSUs are granted to the Participant, the applicable Performance Criteria, the basis upon which
such PSUs will become Eligible PSUs and valued, whether such PSUs (and Dividend Equivalent PSUs relating thereto) are, upon becoming Vested PSUs pursuant to Section 8, to be payable to the Participant on the Vesting Date in Canadian currency or
United States currency, and the applicable Stock Exchange to be used to determine the Market Value of such PSUs, any other Share price or other methodology used to determine the value of such PSUs, and the applicable Vesting Date.

  

	 	4.3	 PSUs. Subject to the terms and conditions of the Plan, and the applicable Grant Agreement, each PSU
will give a Participant the right to receive a payment in cash or in Shares, as determined by the Committee, in an amount and on such date or dates, including the Vesting Date, as may be determined in accordance with the terms of the Plan and the
applicable Grant Agreement. For greater certainty, a Participant shall have no right to receive a cash payment or Shares with respect to any PSUs that do not become both Eligible PSUs pursuant to Section 7 and Vested PSUs pursuant to
Section 8, as applicable. Further, unless otherwise expressly authorized by this Plan (including, without limitation, Section 8) or the applicable Grant Agreement, a Participant shall have no right to receive

			
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a cash payment or Shares if the Participant is not actively employed by the Corporation or an Affiliate, as applicable, on the Vesting Date. 

 

	 	4.4	 Performance Period. The Committee shall specify the Performance Period or Performance Periods
applicable to each PSU grant under Section 4.1, the first day of which, unless otherwise provided in a Grant Agreement, shall commence with the calendar year in which the Grant Date occurs. 

 

	 	4.5	 Other Terms and Conditions. Subject to the terms of the Plan, the Committee or the Board may
determine other terms or conditions of, or take actions relating to, any PSUs, or any grant thereof, including: 

  

	 	(a)	 any additional conditions with respect to the vesting of PSUs, in whole or in part, or the payment of cash or provision
of Shares under the Plan; 

  

	 	(b)	 restrictions on the resale of Shares, including escrow arrangements; 

 

	 	(c)	 exercising such discretion as may be set out in the Plan or a particular Grant Agreement; and 

 

	 	(d)	 any other terms and conditions the Committee may, in its discretion, determine, 

 

	 	 	 which other terms or conditions shall be set out in the Grant Agreement. 

 

	 	 	 Except as otherwise provided in Section 11.8, the Committee may, in its discretion, after the Grant Date of a PSU,
waive any term or condition in respect of such PSU or determine that it has been satisfied. 

  

	 	4.6	 Payment Date. For greater certainty, and notwithstanding any other provision of the Plan or an
applicable Grant Agreement, no term or condition imposed under this Plan or a Grant Agreement may have the effect of causing payment of the value of a PSU to a Participant, or his legal representative, to occur after December 31 of the
third calendar year following the calendar year in which the Grant Date occurs. 

  

	 	4.7	 No Certificates. No share or other certificates shall be issued with respect to PSUs.

  

	5.	 ACCOUNTS, DIVIDEND EQUIVALENTS AND REORGANIZATION 

 

	 	5.1	 PSU Account. An account, called a “PSU Account”, shall be maintained by the Corporation
for each Participant and will be credited with such notional grants of PSUs as may be received by a Participant from time to time pursuant to Sections 4.1 and 5.2 and, where applicable, with the Eligible PSU Amount relating to a particular
Performance Period as may be determined pursuant to Section 7. For clarity, unless otherwise expressly authorized by this Plan (including, without limitation, Section 8) or the applicable Grant Agreement, the Participant shall have no
entitlement or right to any PSUs granted, credited to or recorded in the Participant’s PSU Account, or to any Eligible PSU Amount credited to or 

			
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recorded in such PSU Account, whether expressed in PSUs or dollar value form, prior to the Vesting Date if the Participant is not actively employed by the Corporation or an Affiliate, as
applicable, on the Vesting Date. 

  

	 	5.2	 Dividend Equivalent PSUs. In the event cash dividends are paid by the Corporation on the Shares,
additional PSUs shall be credited to the Participant’s PSU Account in accordance with this Section 5.2 (“Dividend Equivalent PSUs”). The number of such Dividend Equivalent PSUs (including fractional PSUs) and the date upon which
such Dividend Equivalent PSUs are credited to the Participant’s PSU Account shall be determined by the Corporation in accordance with the applicable Grant Agreement. Except where provided otherwise in a Grant Agreement, Dividend Equivalent PSUs
shall vest and be paid to the Participant at the same time as the Eligible PSUs to which they relate. 

  

	 	5.3	 Adjustments. In the event of any stock dividend, stock split, combination or exchange of shares,
capital reorganization, consolidation, spin-off or other distribution (other than normal cash dividends) of Corporation assets to shareholders, or any other similar changes affecting the Shares, proportionate
adjustments to reflect such change or changes may be made with respect to the number of PSUs outstanding under the Plan, or securities into which the Shares are changed or are convertible or exchangeable may be substituted for Shares under this
Plan, on a basis proportionate to the number of PSUs in the Participant’s PSU Account on some other appropriate basis, all as determined by the Board in its discretion. 

 

	6.	 OPTIONAL FUNDING OF PSU AWARDS 

 

	 	6.1	 Contributions to Trust Fund. Except as otherwise provided in Section 11.8, the Corporation
may, in its sole discretion, from time to time, on its own behalf and on behalf of such of its Affiliates as employ Participants, or any Affiliate may, make contributions to a Trust Fund in such amounts and at such times as may be specified by the
Committee or the Board for the purpose of funding, in whole or in part, awards of PSUs which become payable to Participants pursuant to the Plan. For clarity, this Section 6 does not obligate the Corporation or any Affiliate to create a Trust
Fund, nor to make contributions to a Trust Fund in any amounts or at all nor does it require the funding in whole or in part of any award of PSUs granted under this Plan. 

 

	 	6.2	 Share Purchases. Where applicable, any purchases of Shares by the Trustee or otherwise pursuant to
the Plan shall be made on the open market by a broker designated by the Trustee who is independent of the Corporation in accordance with Stock Exchange Rules and who is a member of the Stock Exchange. Subject to the foregoing part of this
Section 6.2, any such designation may be changed from time to time. For clarity, this Section 6 does not obligate the Corporation or any Affiliate to purchase shares for the purposes of funding or settling, in whole or in part, awards of
PSUs which may become payable to Participants pursuant to the Plan. 

			
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	7.	 ELIGIBLE PSUs AND PERFORMANCE CRITERIA 

 

	 	7.1	 Eligible PSUs. PSUs granted to a Participant under Section 4.1 (and Dividend Equivalent PSUs
granted to the Participant in respect of such PSUs) shall become “Eligible PSUs” in accordance with Section 7.2 and subject to the terms and conditions of the Plan and applicable Grant Agreement. PSUs granted to a Participant which do
not become Eligible PSUs in accordance with this Section 7 or do not become Vested PSUs pursuant to Section 8, as applicable, shall be forfeited by the Participant or, where applicable, the Participant’s legal representative, and the
Participant and, where applicable, the Participant’s legal representative, shall have no further right, title or interest in such PSUs. In such event, the Participant hereby waives any and all claims and/or rights to compensation or damages in
consequence of the Termination of Employment (whether lawfully or unlawfully) or otherwise for any reason whatsoever insofar as these rights arise or may arise from the Participant ceasing to have rights to receive any cash payment or Shares in
respect of PSUs granted under the Plan or any applicable Grant Agreement pursuant to this Section 7 or Section 8. 

  

	 	7.2	 Eligibility Based on Achievement of Performance Criteria. PSUs granted to a Participant may only become
Eligible PSUs upon satisfaction of the Performance Criteria referred to in Section 7.3, as determined by the Committee, in its discretion, and pursuant to the terms and conditions set forth in the Plan and the applicable Grant Agreement.

  

	 	7.3	 Determination of Performance Criteria. With respect to each grant of PSUs pursuant to
Section 4.1, the Committee shall cause to be determined at the Committee Meeting Date applicable to a particular Performance Period, the Achieved Performance Criteria in respect of that Performance Period, as set out in the applicable Grant
Agreement, for purposes of determining whether, and the extent to which (as applicable), such PSUs have become Eligible PSUs. 

  

	 	7.4	 Eligible PSU Amount. With respect to the Eligible PSUs relating to a particular Performance Period, the
Committee shall also cause to be determined at the applicable Committee Meeting Date, the Eligible PSU Amount relating to such Eligible PSUs, which amount shall be used to determine the value relating to such Eligible PSUs on the Vesting Date,
subject to and in accordance with the terms and conditions of the Plan and the applicable Grant Agreement. The Committee may, in its discretion, determine whether to adjust the Eligible PSU Amount, and where such an adjustment is to be made, the
adjustment mechanism in respect thereof. 

  

	8.	 VESTING AND PAYMENT OF PSU AWARDS 

 

	 	8.1	 Vesting of Eligible PSUs. Subject to Sections 8.3, 8.4 and 8.5, Eligible PSUs relating to a grant
of PSUs shall become Vested PSUs on the Vesting Date set forth in the applicable Grant Agreement. Except where the context requires otherwise, each Eligible PSU which vests pursuant to Section 8 shall be referred to for the purposes of the Plan
and the applicable Grant Agreement as a “Vested PSU”. Eligible PSUs which do not become Vested PSUs in accordance with this Section 8 shall be forfeited by the Participant and the Participant will have no

			
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further right, title or interest in such PSUs. In such event, the Participant hereby waives any and all claims and/or rights to compensation or damages in consequence of the Participant’s
Termination of Employment (whether lawfully or unlawfully, wrongful or otherwise) or otherwise for any reason insofar as these rights arise or may arise from the Participant ceasing to have rights to receive any cash payment or Shares in respect of
PSUs granted under the Plan or any applicable Grant Agreement pursuant to this Section 8. 

  

	 	8.2	 Payment in Cash or Shares. Subject to Sections 8.3, 8.4 and 8.5, each Participant shall be entitled to
receive in cash or in Shares (or a combination thereof), as determined by the Committee, a payment in respect of the Vested PSUs relating to a particular Performance Period, as determined pursuant to Section 8.1, equal to the Participant’s
Eligible PSU Amount in respect of such Performance Period (as may be adjusted pursuant to Section 7.4). Except as otherwise provided in Sections 8.3, 8.4, 8.5 and 11.8 and/or the applicable Grant Agreement(s), the cash or Shares in the amount
determined pursuant to this Section 8.2 shall be paid or distributed to the Participant or their legal representative, as applicable, as soon as practicable following the Vesting Date set forth in the applicable Grant Agreement(s) and, in any
event, prior to December 31 of the calendar year in which the applicable Vesting Date occurs, provided the Participant remains actively employed with the Corporation or an Affiliate, as applicable, on such date. Notwithstanding the
foregoing or any other provision of the Plan, in respect of Vested PSUs, the Committee shall not settle in Shares any Vested PSUs for PSUs originally granted to the Participant after May 2, 2017 unless all approvals of such PSUs and/or the
issuance of Shares in settlement of such PSUs, by shareholders or otherwise, as are required under Applicable Laws, are received prior to the applicable Vesting Date. 

 

	 	8.3	 Death, Retirement, Period of Absence or Unpaid Leave of Absence. 

 

	 	8.3.1	 Death. Unless otherwise determined by the Committee, in the event the Participant ceases to be an employee
of the Corporation or an Affiliate, as applicable, by reason of the Participant’s death, the following shall apply: 

  

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

  

	 	(i)	 All Vested PSUs credited to the Participant’s PSU Account as of the Participant’s date of death, if any, if
not already paid or distributed, shall be paid or distributed to the Participant’s legal representative in accordance with Section 8.2; and 

  

	 	(ii)	 Unless otherwise determined by the Committee, in the event of the Participant’s death prior to the Vesting Date
relating to a grant of PSUs, PSUs granted to the Participant prior the Participant’s date of death which become Eligible PSUs pursuant to Section 7.2 shall vest and become payable to the Participant’s legal representative on the
applicable Vesting Date in accordance with Section 8.2 in proportion to the number of calendar months (rounded up to the nearest whole month) following the applicable Grant Date before the date of death. 

			
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	 	(b)	 Where the Participant’s date of death occurs on a date following the date that the Participant attains the age of
60 years, then: 

  

	 	(i)	 All Vested PSUs credited to the Participant’s PSU Account as of the Participant’s date of death, if any, if
not already paid or distributed, shall be paid or distributed to the Participant’s legal representative in accordance with Section 8.2; 

  

	 	(ii)	 Unless otherwise determined by the Committee, PSUs granted to the Participant prior to the Participant’s date of
death which become Eligible PSUs pursuant to Section 7.2 shall vest and become payable to the Participant’s legal representative on the applicable Vesting Date in accordance with Section 8.2. 

 

	 	(c)	 For clarity, no additional PSUs (whether pursuant to Section 4.1 or in the form of Dividend Equivalent PSUs) shall
be granted to the Participant following the Participant’s date of death. 

  

	 	8.3.2	 Retirement. Unless otherwise determined by the Committee, in the event the Participant ceases to be an
employee of the Corporation or an Affiliate by reason of the Participant’s Retirement, the following shall apply: 

  

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

  

	 	(i)	 All Vested PSUs credited to the Participant’s PSU Account as of the Participant’s Date of Retirement, if any,
if not already paid or distributed, shall be paid or distributed to the Participant in accordance with Section 8.2; and 

  

	 	(ii)	 Unless otherwise determined by the Committee, in the event of the Participant’s Retirement prior to the Vesting
Date relating to a grant of PSUs under Section 4.1, PSUs granted to the Participant prior the Participant’s Date of Retirement which become Eligible PSUs pursuant to Section 7.2 shall vest and become payable to the Participant on the
applicable Vesting Date in accordance with Section 8.2 in proportion to the number of calendar months (rounded up to the nearest whole month) following the applicable Grant Date before the Date of Retirement. 

 

	 	(b)	 Where the Participant’s Date of Retirement occurs on a date that is on or after the date the Participant attains
the age of 60 years, then: 

  

	 	(i)	 All Vested PSUs credited to the Participant’s PSU Account as of the Participant’s Date of Retirement, if any,
if not already paid or distributed, shall be paid or distributed to the Participant in accordance with Section 8.2; 

  

	 	(ii)	 Unless otherwise determined by the Committee, PSUs granted to the Participant prior to the Participant’s Date of
Retirement which 

			
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become Eligible PSUs pursuant to Section 7.2 shall vest and become payable to the Participant on the applicable Vesting Date in accordance with Section 8.2. 

 

	 	(c)	 For clarity, no additional PSUs (whether pursuant to Section 4.1 or in the form of Dividend Equivalent PSUs) shall
be granted to the Participant following his Date of Retirement. 

  

	 	8.3.3	 Period of Absence. Unless otherwise determined by the Committee, in the event of a Participant’s
Period of Absence, PSUs credited to the Participant’s PSU Account immediately prior to such Period of Absence (and any related Dividend Equivalent PSUs) shall continue to be and become Eligible PSUs in accordance with the provisions of
Section 7.2 and such Eligible PSUs (if any) shall continue to become Vested PSUs in accordance with Section 8.1 and the Participant shall be entitled to receive a payment relating to such Vested PSUs determined in accordance with
Section 8.2 in respect of each Performance Period that ends during the period of such Period of Absence and thereafter, unless there occurs a Termination of Employment during a Performance Period, in which case the provisions of
Section 8.4 shall apply, or unless the Participant’s death occurs during a Performance Period, in which case the provisions of Section 8.3.1 shall apply, or unless there occurs a Retirement of the Participant during a Performance
Period, in which case the provisions of Section 8.3.2 apply. 

  

	 	8.3.4	 Unpaid Leave of Absence. Unless otherwise determined by the Committee, in the event of a
Participant’s Unpaid Leave of Absence, PSUs shall not become Eligible PSUs nor shall any PSUs become Vested PSUs during the Participant’s Unpaid Leave of Absence and the provisions of this Section 8.3.4 shall be applicable. The
Participant shall only become entitled to have his PSUs become Eligible PSUs or, as applicable, his Eligible PSUs to become Vested PSUs on the date when the Participant’s Unpaid Leave of Absence ends and the Participant returns to active
employment with the Corporation or an Affiliate. If the Participant does not return to active employment with the Corporation or an Affiliate from the Unpaid Leave of Absence, all unvested PSUs regardless of whether such PSUs are or are not Eligible
PSUs shall not vest and shall be forfeited and cancelled and the Participant waives any and all right to compensation or damages in consequence of the Participant ceasing to have rights or be entitled to receive any cash or Shares under the Plan
pursuant to this Section 8.3.4. Notwithstanding anything contained herein to the contrary, in no event shall this Section 8.3.4 cause a Section 409A Amount to be paid in a calendar year later than the calendar year such
Section 409A Amount would have been paid had the Participant not been on an Unpaid Leave of Absence. For greater certainty, and notwithstanding any other provision in the Plan or a Grant Agreement, in no event shall this Section 8.3.4
cause a Section 409A Amount to be paid in a calendar year later than the calendar year such Section 409A Amount would have been paid had the Participant not been on an Unpaid Leave of Absence and instead such Section 409A Amount shall
either be forfeited or paid on or before December 31 of the 

			
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calendar year in which such amount would have been paid had the Participant not been on an Unpaid Leave of Absence, as determined by the Committee. 

 

	 	8.4	 Termination of Employment. Unless otherwise determined by the Committee, a Participant shall not be
entitled to any further grant or vesting of PSUs nor shall any PSUs become Eligible PSUs and the Participant shall not be entitled to any cash, Shares or other payment (including without limitation any Eligible PSU Amount) in respect of any unvested
PSUs following a Termination of Employment. Except as otherwise provided in Section 8.5.2, PSUs (including any related Dividend Equivalent PSUs) which do not become Eligible PSUs or which do not vest in accordance with Section 8 prior to
the Date Employment Ceases shall be cancelled without payment. The Participant waives any and all right to compensation or damages which may arise or may be deemed to arise in consequence of the Participant’s Termination of Employment (whether
lawfully or unlawfully) or otherwise for any reason whatsoever insofar as those rights arise or may arise from the Participant ceasing to have rights or be entitled to receive any cash, Shares or other payment under the Plan pursuant to this
Section 8.4. Any Vested PSUs credited to a Participant’s PSU Account as of the Date Employment Ceases shall be payable in accordance with Section 8.2. 

 

	 	8.5	 Change in Control.  

 

	 	8.5.1	 PSUs granted prior to February 14, 2018. With respect to PSUs granted to
the Participant prior to February 14, 2018, notwithstanding any other provision of the Plan, unless otherwise specified by the Board or the Committee with respect to any portion of a PSU that does not constitute a Section 409A Amount, in
the event of a Change in Control: 

  

	 	(a)	 all Eligible PSUs credited to the Participant’s PSU Account immediately prior to such Change in Control shall
become Vested PSUs immediately prior to the time of such Change in Control; and all PSUs credited to the Participant’s PSU Account that are not Eligible PSUs immediately prior to the time of such Change in Control shall become Eligible PSUs
determined as if the Median Performance Criteria in respect of each applicable Performance Period have been achieved, and shall become Vested PSUs immediately prior to the time of such Change in Control; 

 

	 	(b)	 as soon as practicable, and in any event within 30 days, following a Change in Control, (i) to the extent a
Participant’s Vested PSUs are expressed in dollar value form in the PSU Account (including, without limitation, as a dollar value Eligible PSU Amount), the Participant shall receive a cash payment equal to such dollar value; and (ii) to
the extent a Participant’s PSUs are expressed in PSU form in the PSU Account, the Participant shall receive in cash or in Shares (or a combination thereof), as may be determined by the Board or the Committee, a payment equal to the number of
Vested PSUs (including as determined pursuant to Section 8.5.1(a)) credited to the Participant’s PSU Account at the time of the Change in Control (rounded up to the nearest whole number of Vested PSUs) multiplied by the price at which the
Shares are valued for the purpose of the transaction or series of transactions giving rise to the 

			
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Change in Control, or if there is no such transaction or transactions, the simple average of the closing price per Share on the applicable Stock Exchange on each day in the thirty day period
ending on the date of the Change in Control (as applicable, the “Change in Control Value”); and 

  

	 	(c)	 with respect to any Section 409A Amount (i) if the Change in Control constitutes a change in the ownership or
effective control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation, as such terms are used in Section 409A of the Code and related regulations (a “409A Change of Control”),
such Section 409A Amount shall be paid in accordance with Section 8.5.1(b), and (ii) if the Change in Control does not constitute a 409A Change of Control, such Section 409A Amount shall in all events be paid during the calendar
year or years in which such amount would have been paid had there been no Change in Control. 

  

	 	8.5.2	 PSUs granted on or after February 14, 2018. The provisions of this
Section 8.5.2 shall apply to PSUs granted to the Participant on or after February 14, 2018, notwithstanding any other provision of the Plan. 

  

	 	(a)	 In the event of a Change in Control, all Eligible PSUs credited to the Participant’s PSU Account immediately prior
to such Change in Control shall become Vested PSUs immediately prior to the time of such Change in Control, and each PSU credited to the Participant’s PSU Account that are not Eligible PSUs immediately prior to the time of such Change in
Control shall become Eligible PSUs with the Achieved Performance Criteria in respect of the applicable Performance Period deemed to be the greater of (x) the Median Performance Criteria and (y) the level of achievement of the Performance
Criteria applicable to the Performance Period as determined by the Committee no later than the date of the Change in Control, taking in account performance through the latest date preceding the Change in Control as to which performance can, as a
practical matter, be determined (but no later than the end of the Performance Period), and shall become Vested PSUs immediately prior to the time of such Change in Control, except to the extent that an award of PSUs meeting the requirements set out
below in this Section 8.5.2(a) (such award, a “Replacement Award”) is provided to the Participant to replace such award of PSUs (each award of PSUs 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 PSUs shall meet the requirements of this Section 8.5.2(a) (and hence qualify as a Replacement Award) if (A) it has a value equal to the
value of the Replaced Award as of the date of the Change in Control determined with reference to the Change in Control Value of the PSUs comprising the Replaced Award and the fair market value of the securities underlying the Replacement Award,
(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

			
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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 the greater of
(x) the Median Performance Criteria and (y) the level of achievement of the Performance Criteria applicable to a Performance Period as determined by the Committee no later than the date of the Change in Control, taking in account
performance through the latest date preceding the Change in Control as to which performance can, as a practical matter, be determined (but no later than the end of the Performance Period)), 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
upon the Change in Control giving rise to the replacement. The determination whether the conditions of this Section 8.5.2(a) are satisfied shall be made by the Committee, as constituted immediately before the Change in Control, in its sole
discretion. All PSUs that become Vested PSUs pursuant to this Section 8.5.2(a) shall be paid in accordance with Sections 8.5.1(b) or 8.5.1(c), as applicable. 

 

	 	(b)	 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 PSUs
immediately prior to the time of such Termination of Employment, and shall be paid as soon as practicable, and in any event within 30 days, following such Termination of Employment; provided that if the Replacement Award is a Section 409A
Amount, and the Change in Control is not a 409A Change in Control, then such Replacement Award shall in all events be paid during the calendar year or years in which it would have been paid had there been no Change in Control. For clarity, in this
Section 8.5.2(b), the defined term “Vested PSUs” shall be deemed to apply, mutatis mutandis, to Replacement Awards that are not a continuation of Replaced Awards. 

 

	9.	 CURRENCY 

  

	 	9.1	 Currency. Except where expressly provided otherwise, all references in the Plan to currency refer
to lawful Canadian currency. 

  

	10.	 SHAREHOLDER RIGHTS 

  

	 	10.1	 No Rights to Shares. PSUs are not Shares and neither the grant of PSUs nor the fact that Shares may
be acquired by, or provided from, a Trust Fund or otherwise in satisfaction of Vested PSUs will entitle a Participant to any shareholder rights, including, without limitation, voting rights, dividend entitlement or rights on liquidation.

			
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	11.	 ADMINISTRATION 

  

	 	11.1	 Committee. Unless otherwise determined by the Board, or as specified in Section 11.6, the Plan
shall be administered by the Committee. 

  

	 	11.2	 Compliance with Laws and Policies. The Corporation’s issuance of any PSUs and its obligation
to make any payments or discretion to provide any Shares hereunder is subject to compliance with Applicable Law. Each Participant shall acknowledge and agree (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 other laws and any policies of the Corporation applicable to the Participant in connection with the Plan including, without limitation,
furnishing to the Corporation all information and undertakings as may be required to permit compliance with Applicable Law. Such laws, regulations, rules and 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. 

  

	 	11.3	 Delegation. The Committee may also delegate to any director, officer or employee of the Corporation
such duties and powers relating to the Plan or in respect of an applicable Grant Agreement as it may see fit. 

  

	 	11.4	 Withholdings. Notwithstanding any other provision in this Plan, to ensure that the Corporation, an
Affiliate or a Trust Fund, 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 Corporation, or an Affiliate may withhold or cause to be withheld from any amount payable to a Participant, either under this Plan, or otherwise, such amount, or may require the sale of such number of
Shares by the Trustee, as may be necessary to permit the Corporation, the Affiliate or a Trust Fund, as applicable, to so comply. 

  

	 	11.5	 No Additional Rights. Neither designation of an employee as a Participant nor the grant of any PSUs
to any Participant at any time entitles any person to the grant, or any additional grant, as the case may be, of any PSUs under the Plan. 

  

	 	11.6	 Amendment, Termination. The Plan may be amended or terminated at any time by the Board in whole or
in part. No amendment of the Plan shall, without the consent of the Participants affected by the amendment, or unless required by Applicable Law, adversely affect the rights accrued to such Participants with respect to PSUs granted prior to the date
of the amendment. Notwithstanding any provision in the Plan to the contrary, the Plan may be amended to prevent any adverse tax results under Section 409A of the Code. 

 

	 	11.7	 Administration Costs. The Corporation will be responsible for all costs relating to the
administration of the Plan. For greater certainty and unless otherwise determined by the Committee, a Participant shall be responsible for brokerage fees and other administration or transaction costs relating to the transfer, sale or other
disposition of Shares on behalf of the Participant that have been previously distributed to or provided to the Participant pursuant to the Plan. 

			
	 Performance Share Unit Plan for Employees
 of Encana Corporation

(With amendments as of February 14, 2018 )
  
	 	Page 22

  

	 	11.8	 Section 409A. 

 

	 	11.8.1	 Section 409A Amounts. To the extent applicable to any
Section 409A Amount, it is intended that the Plan and any Grant Agreement or other agreement that amends or otherwise affects such Section 409A Amount will comply with Section 409A of the Code and any regulations and guidance issued
thereunder, and the Plan and any such Grant Agreement or other agreement shall be interpreted accordingly. The provisions of this Section 11.8 shall apply to any Section 409A Amount notwithstanding anything in the Plan or a Grant Agreement
to the contrary. In no event shall a Section 409A Amount be distributed at a time or pursuant to an event that is not specified in Section 409A(a)(2) of the Code. 

 

	 	11.8.2	 Retirement or Termination of Employment. The Plan does not provide for payment to occur upon (or on
a specified date or within a specified period following) a Termination of Employment or Retirement; however, to the extent any Grant Agreement or other agreement provides that any Section 409A Amount is to be distributed upon (or on a specified
date or within a specified period following) the date of a U.S. Participant’s Termination of Employment or Retirement, such U.S. Participant shall be deemed to have experienced a Termination of Employment or Retirement when (and only when) a
separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)) has occurred. 

  

	 	11.8.3	 Specified Employees. If a U.S. Participant is a “specified employee” for purposes of
Section 409A of the Code, no payment, distribution or other benefit provided pursuant to a Section 409A Amount that is required to be delayed to comply with Section 409A(a)(2)(B)(i) of the Code shall be provided before the date that
is six months after the date of such separation from service (or, if earlier than the end of such six-month period, the date of death of the Participant). Any payment, distribution or other benefit that is
delayed pursuant to the prior sentence shall be paid on the first Business Day following the six-month anniversary of the Participant’s separation from service or date of death, as the case may be.

  

	 	11.8.4	 Time of Payment. In no event shall a Participant be entitled to designate the taxable year in which
any Section 409A Amount is to be paid. Except with respect to payments following a Change in Control pursuant to Section 8.5.3, Shares or cash to be paid in respect of any Section 409A Amount pursuant to Vested PSUs shall in all
events be paid within the calendar year in which the applicable Vesting Date set forth in the applicable Grant Agreement(s) occurs, which for purposes of Section 409A Amounts shall always be defined as occurring within a single calendar
year. Payments with respect to Dividend Equivalent PSUs shall be paid at the same time as the PSU to which such Dividend Equivalent PSU relates. 

  

	 	11.8.5	 No Acceleration of Payments. In no event shall a change in a Performance Period, a waiver,
amendment, exercise of discretion to adjust the Eligible PSU Amount under Section 7.4, or other modification 

			
	 Performance Share Unit Plan for Employees
 of Encana Corporation

(With amendments as of February 14, 2018 )
  
	 	Page 23

  

	 	 
of any terms or conditions of a PSU or any determination by the Committee or the Board, as applicable in each case, that occurs after the Grant Date cause any Section 409A amount to be paid
in a calendar year that is different than the calendar year in which payment would have occurred but for such change to the Performance Period, waiver, amendment, modification, exercise of discretion, or determination. 

 

	 	11.8.6	 Trusts. Notwithstanding Section 6.1 hereof, no funds with respect to any Section 409A
Amount shall be set aside in a trust located outside the United States or in any other trust or arrangement described under Section 409A(b)(1) of the Code. 

 

	12.	 ASSIGNMENT 

  

	 	12.1	 Assignment. The assignment or transfer of the PSUs, or any other benefits under this Plan, shall
not be permitted other than by operation of law. 

 * * * *EX-10.11

 Exhibit 10.11 

PERFORMANCE SHARE UNIT PLAN 
 FOR
EMPLOYEES OF ENCANA CORPORATION 
 [CANADIAN EXECUTIVE] 20● PSU GRANT
AGREEMENT 
  

			
	Participant Name:	 	###PARTICIPANT_NAME###
		
	Grant Date:	 	###GRANT_DATE###
		
	Performance Period:	 	January 1, 20● to December 31, 20●
		
	Number of PSUs	 	###TOTAL_AWARDS###
		
	Currency of PSUs:	 	CAD
		
	Stock Exchange:	 	TSX
		
	Vesting Date:	 	See Schedule “A”

 This Grant Agreement including Schedules “A” and “B” hereto (collectively, this
“Agreement”) is between you, an eligible employee of the Corporation or an Affiliate (“Participant” or “You”) and Encana Corporation or an Affiliate thereof
(the “Corporation”). 
 WHEREAS the Corporation has adopted a Performance Share Unit Plan for Employees of Encana
Corporation (the “Plan”); 
 AND WHEREAS subject to the terms and conditions of the Plan and this Agreement, the Corporation
has authorized the granting to You of certain Performance Share Units (“PSUs”) in such number as set out above and as further described in this Agreement; 

NOW THEREFORE, THIS AGREEMENT WITNESSETH that in consideration of such PSU grant and such other good and valuable consideration including,
among other things, the employment services rendered by You to the Corporation or its Affiliate, the receipt and sufficiency of which is hereby acknowledged by the parties, it is agreed by and between the parties hereto as follows: 

 

	1.	 You confirm that You have received and reviewed a copy of the Plan and agree to be bound by its terms and conditions.

  

	2.	 Participation in the Plan is voluntary on Your part. 

 

	3.	 The terms and conditions of the Plan are hereby incorporated by reference as terms and conditions of this Agreement.
All capitalized terms used in this Agreement, unless otherwise defined herein, shall have the meanings ascribed to such terms as set out in the Plan. 

  

	4.	 Effective as of the Grant Date above, the Corporation hereby grants to You, in accordance with and subject to the
terms and conditions of the Plan and this Agreement, PSUs in such number and in respect such Performance Period as set out above, and subject to the achievement of such Performance Criteria and such other terms and conditions as set forth in the
Plan and this Agreement including, without limitation, Schedules “A” and “B” hereof. 

  

	5.	 You agree that the determination by the Board (or the Committee, as applicable) regarding any question or issue which
may arise as to the interpretation or implementation of the Plan, 

	 	 
this Agreement or any PSUs granted to You hereunder, shall be final and binding on You and all other persons claiming or deriving rights through You. 

 

	6.	 The Corporation’s grant to You of any PSUs (or any obligation to make any corresponding payment to You) under the
Plan or this Agreement is made expressly subject to the Parties’ compliance with Applicable Law. As a condition of participating in the Plan, You hereby confirm and accept the foregoing, and agree to comply with all Applicable Law and to
furnish to the Corporation any and all information or undertakings as may be required to permit same. 

  

	7.	 You acknowledge and agree that the Plan and this Agreement contain specific terms and conditions (including, without
limitation, in Section 8 of the Plan) with respect to determining whether and the extent to which PSUs may become Eligible PSUs and, as applicable, Vested PSUs and which govern your rights including, without limitation, in respect of a Period
of Absence, Unpaid Leave of Absence, Death or Retirement, upon a Termination of Employment and/or upon a Change in Control. Without restricting the generality of Section 1 hereof, You hereby confirm that You have read all provisions of the Plan
and this Agreement and agree to be bound by same. 

  

	8.	 Except as otherwise provided in Section 8.5.2 of the Plan, without limiting the generality of the foregoing, You
confirm that upon the occurrence of a Termination of Employment of You, pursuant to Section 8.4 of the Plan, effective as of the Date Employment Ceases, You shall not be entitled to any further vesting of PSUs previously granted
hereunder or to any further grant of PSUs, nor to any cash, Shares or other payment (as applicable) whatsoever in respect of any PSUs or Eligible PSUs that are unvested on or following such date. 

 

	9.	 Neither the Plan nor any action taken thereunder shall interfere with the right of the Corporation to terminate Your
employment at any time. Neither shall any period of notice of termination, if any (whether pursuant to statute or common law), nor any payment in lieu thereof, upon a Termination of Employment of You (whether such termination is wrongful or
otherwise) be considered or deemed to extend the period of Your employment or, for greater certainty, the Date Employment Ceases, for purposes of the Plan or this Agreement including, without limitation, for the purposes of vesting any PSUs or any
payment in respect thereof. For greater certainty, all vesting of PSUs granted to You hereunder shall immediately cease as of the Date Employment Ceases. 

  

	10.	 You shall have no rights whatsoever as a shareholder in respect of any Shares (including any rights to receive
dividends or other distributions from or on the Shares) other than in respect of Shares (if any) distributed to You in satisfaction of Your Vested PSUs in accordance with and in the manner provided for in the Plan. 

 

	11.	 You acknowledge and agree that PSUs granted to You hereunder, including any payment to You, whether made or pending,
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. 

  

	12.	 Subject to Section 11.6 of the Plan, this Agreement may be amended or terminated at any time by the Committee in
whole or in part and the Plan may be amended or terminated in whole or in part at any time by the Board. 

  

	13.	 This Agreement shall enure to the benefit of and be binding upon the Corporation and its respective successors and
assigns and upon You and all other persons claiming or deriving rights through You. 

  
 - 2 - 

	14.	 This Agreement and the rights of all parties and the construction of each and every provision hereof and the Plan and
any PSUs granted hereunder shall at all times and for all purposes be construed according to the laws of the Province of Alberta (and the federal laws of Canada, as applicable, herein) and shall be treated in all respects as an Alberta contract,
without reference to the principles of conflicts of law. In the event of a dispute, You agree to submit to the jurisdiction of the courts of the Province of Alberta. 

 

	15.	 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 applicable tax law and, in respect of U.S. Participants, Section 409A, and that 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. If You are an US Participant, You are solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed upon You or for Your account 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 You (or any beneficiary)
harmless from any or all of such taxes or penalties. In addition, should any provision of the Plan or this Agreement be subject to Section 409A, You agree that the Date Employment Ceases and the Date of Retirement shall be determined to mean a
“separation from service” as defined in Section 409A whenever necessary to ensure compliance therewith for any payment or settlement of a benefit conferred under the Plan or this Agreement that is subject to Section 409A, and,
for such purposes, shall be determined based upon a reduction in the bona fide level of services performed to a level equal to twenty percent (20%) or less of the average level of services performed by You during the immediately preceding 36-month period. Any distribution or settlement of a benefit conferred under the Plan or this Agreement following the Date Employment Ceases or the Date of Retirement that would be subject to Section 409A as a
distribution following a separation from service of a “specified employee” as defined under Section 409A, shall occur no earlier than the expiration of the six-month period following such Date
Employment Ceases or Date of Retirement. 

  

	16.	 You agree to the collection, use and disclosure of personal information about You (including, without limitation,
personal employee information about You) (collectively, “Personal Information”) by the Corporation or its Affiliates for purposes of administering and managing the grant of PSUs to You hereunder, operation of the Plan and this
Agreement and, as applicable, compliance with Applicable Law (the “Purposes”). 

 Without
limiting the generality of the foregoing, You agree to the collection, use and disclosure of the Personal Information by the Corporation and its Affiliates from and to such third party service provider(s) as may be retained by the Corporation from
time to time to assist with the Purposes (“Service Provider”), as may be reasonably required to fulfil the Purposes, whether verbally (including by telephone), in writing or electronically over the Internet including, without
limitation, by e-mail. You agree that any acceptance or consent indicated by You in electronic form to any documents provided to You by the Corporation or the Service Provider including, without limitation,
the Plan and this Agreement shall be the equivalent of original written paper documents and Your written acceptance or consent thereto. 

You further agree to provide the Corporation and, where necessary, the Service Provider, with all information, including Personal
Information, as may be reasonably required to fulfil the Purposes. You acknowledge and agree that the Corporation, an Affiliate and/or the Service Provider (as applicable) may, from time to time, and in accordance with Applicable Laws, disclose
Personal Information including, without limitation, in response to regulatory 

  
 - 3 - 

 
filings or other lawful requests by a government authority or regulatory body, or for purpose of complying with a subpoena, warrant or other order by a court or other party having jurisdiction
over the Corporation, an Affiliate or the Service Provider (as applicable) to compel production of same. You acknowledge and agree that the Corporation, an Affiliate or the Service Provider may, as part of their business practices, collect, use and
disclose the Personal Information outside of Canada or the United States (as applicable) in respect of the Purposes. Should You have any questions regarding the Corporation’s collection, use and disclosure of Your Personal Information, please
contact Encana’s Privacy Officer at privacy@encana.com. 
  

	17.	 You understand that by indicating your acceptance of and agreement with the terms of this Agreement (whether
electronically or otherwise), You confirm You have received and reviewed the terms of the Plan and this Agreement, which contain legal terms, and that You agree to be bound by them. 

IN WITNESS WHEREOF this Agreement has been executed effective as of the Grant Date above. 

ENCANA CORPORATION 
  

	
	  

Mike Williams

	
Executive Vice-President, Corporate Services

  
 - 4 - 

 Schedule “A” 

 

	1.	 PSU Vesting & Eligible PSU Amount: 

Any PSUs granted to You on the Grant Date shall only become Vested PSUs upon satisfaction of the terms and conditions set out in the Plan and this
Agreement. Without limiting the generality of the foregoing, any Vested PSUs will only become eligible for payment on the Vesting Date (defined in paragraph 3 below), subject to the terms and conditions set out in the Plan and this Agreement
(including, without limitation, paragraph 9 below). 
 The number of PSUs that may become Vested PSUs (and the Eligible PSU Amount payable in
connection therewith) on the Vesting Date shall be determined by the Committee and the Board following the Performance Period, in accordance with the terms of the Plan and this Agreement. 

 

	2.	 Performance Period: 

The Performance Period for PSUs granted to You hereunder shall be January 1, 20● to
December 31, 20● (the “Performance Period”). 
  

	3.	 Vesting Date: 

Pursuant to the terms of the Plan and this Agreement, the Vesting Date shall be the later of: (i) the applicable third Anniversary Date following
the Grant Date; and (ii) the first Committee Meeting Date immediately following the end of the Performance Period and, in any event, shall be prior to December 31 of the calendar year in which the third Anniversary Date occurs. 

 

	4.	 Performance Criteria: 

The Performance Criteria used to determine the extent (if any), of vesting of PSUs granted hereunder shall consist of the following: 

 

	●	 	 Relative Total Shareholder Return (“RTSR”) (50 percent); and 

	●	 	 Strategic PSU Performance Measures (50 percent), consisting of the following: 

	 	o	 Cash Flow Per Share (25 percent) 

	 	o	 Net Debt to Adjusted EBITDA (25 percent) (collectively, the “PSU Performance Measures”)

 In respect of RTSR, the Corporation’s performance will be compared to the PSU Performance Peer Group (defined in paragraph
5 below), as measured over the Performance Period. 
 RTSR shall reflect a relative ranking of the Corporation’s Compound Annual Growth Rate in
equity market value over the Performance Period (“CAGR”) as compared to the CAGR of each respective member of the PSU Performance Peer Group over the same period, arranged in ascending order. For purposes of determining CAGR for the
Corporation and each PSU Performance Peer Group member during the Performance Period (or otherwise), the following calculation shall be performed: 
  

	 	    	 CAGR = 100 x [(B ÷ A)^.3333 -1], where:

  

	 	A  =	 Commencement Adjusted Share Price: calculated as the average closing price of a share (or in the case of the
Corporation, a Share) on the New York Stock Exchange over the thirty (30) calendar days immediately prior to the commencement of the Performance Period (as defined in paragraph 8 below); and 

  
 A-1 

	 	B  =	 End Adjusted Share Price: calculated as the average closing price of a share, adjusted for dividends paid
during the Performance Period, (or in the case of the Corporation, a Share) on the New York Stock Exchange over the thirty (30) calendar days immediately prior to and including the last day of the Performance Period. 

In respect of the PSU Performance Measures, the Corporation’s performance shall be assessed by the Committee and the Board, as applicable, at the
conclusion of the Performance Period. 
 For purposes of this Agreement, RTSR and the PSU Performance Measures shall be collectively referred to as
the “Performance Criteria”. 
  

	5.	 PSU Performance Peer Group: 

In respect of RTSR, the Corporation’s achievement of the Performance Criteria shall be measured in relation to the following PSU Performance Peer
Group, as may be determined, amended and approved by the Committee or the Board, as applicable from time to time. In respect of the Performance Period, the initial PSU Performance Peer Group shall be as follows: 

 

			
	 Antero Resources Corp.
	  	 EP Energy Corp.

	  
 Cabot Oil & Gas Corp.
	  	  
 Hess Corporation

	  
 Baytex Energy Corp.
	  	  
 Marathon Oil Corp.

	  
 Continental Resources Inc.
	  	  
 Murphy Oil Corp.

	  
 Apache Corp.
	  	  
 Newfield Exploration
Corp.

	  
 Enerplus Corp.
	  	  
 Noble Energy Inc.

	  
 Devon Energy Corp.
	  	  
 Obsidian Energy Ltd.

	  
 Canadian Natural Resources Ltd.
	  	  
 Pengrowth Energy Corporation

	  
 Concho Resources Inc.
	  	  
 Pioneer Natural Resources
Co.

	  
 Chesapeake Energy Corp.
	  	  
 Range Resources Corp.

	  
 Anadarko Petroleum Corp.
	  	  
 Southwestern Energy
Co.

	  
 Crescent Point Energy Corp.
	  	  
 Vermilion Energy Inc.

	  
 EOG Resources Inc.
	  	  
 Whiting Petroleum Co.

 The Committee or the Board, as applicable, may, in its discretion, amend or modify the PSU Performance Peer Group
during the Performance Period (including, without limitation by removing or adding a new member) including, without limitation, in the event any member ceases, in the sole discretion of the Committee or the Board, as applicable, to constitute a
suitable member of the PSU Performance Peer Group. 
  

	6.	 Achieved Performance Criteria: 

Unless otherwise determined by the Committee or the Board, as applicable, the Performance Criteria shall be calculated by the Corporation prior
to the Vesting Date, following the end of the Performance Period. 
 At the Committee Meeting Date immediately following the Performance Period, the
Committee shall evaluate the Corporation’s achievement of the Performance Criteria during the Performance Period. 
 In respect of RTSR, such
assessment shall be relative to the corresponding performance of the PSU Performance Peer Group during the same period. In respect of the PSU Performance Criteria, such assessment shall be relative to criteria as may be determined by the Board or
the Committee, as 

  
 A-2 

 
applicable. Based on such evaluation, the Committee or the Board, as applicable, shall determine whether and the extent to which PSUs hereunder may become Eligible PSUs. 

For purposes of RTSR, the Corporation’s CAGR during the Performance Period shall be measured against the CAGR of members of the PSU Performance
Peer Group, calculated at the 90th, 75th, 50th and 25th percentiles, as reflected in the table below. 

20● PSU Grant: Performance/Payout Matrix: 

 

			
	Relative TSR Performance
Thresholds
	Ranking of Corporation’s CAGR Relative to 
PSU Performance Peer
Group	 	Performance Payout Factor
	P90 and Above	 	200%
	P75	 	150%
	P50	 	100%
	P25	 	50%
	Below P25	 	0%

 For greater certainty, the maximum Performance Payout Factor for the Performance Period is 200%, which may be applied
by the Committee or the Board, as applicable, to an Achieved Performance Criteria at or above P90 (or the 90th percentile) of the PSU Performance Peer Group. 

Achieved Performance Criteria between the respective 3 Year Target Percentiles above shall be calculated on a linear basis, as follows: 

 

	 	◾	 	P25 (or 25th percentile) but less than P50 (or 50th percentile) represents a Performance Payout Factor of
50 –99%; 

  

	 	◾	 	P50 (or 50th percentile) but less than P75 (or 75th percentile) represents Performance Payout Factor of
100 –149%; 

  

	 	◾	 	P75 (or 75th percentile) but less than P90 (or 90th percentile) represents a Performance Payout Factor of
150 –199%; 

 Unless otherwise determined by the Committee or the Board, as applicable, in its discretion, Achieved
Performance Criteria below P25 (or the 25th percentile) will result in no PSUs granted hereunder becoming Eligible PSUs in respect of the Performance Period. 

The Corporation’s performance relative to the PSU Performance Measures over the Performance Period shall be assessed and determined by the
Committee or the Board, as applicable. Based on such evaluation, the Committee or the Board, as applicable, shall determine whether and the extent to which PSUs hereunder may become Eligible PSUs. 

Following upon approval by the Committee or the Board, as applicable, such approved Performance Criteria shall constitute the “Achieved
Performance Criteria” in respect of PSUs granted hereunder. 
  

	7.	 Commencement Adjusted Share Price: 

The Commencement Adjusted Share Price for the Corporation for the Performance Period shall be
$● USD. 

  
 A-3 

	8.	 Dividend Equivalent PSUs:  

Subject to the terms and conditions of the Plan and this Agreement, where cash dividends are paid by the Corporation on the Shares between the Grant
Date and the Committee Meeting Date in respect of the Performance Period, the Corporation shall notionally credit additional Dividend Equivalent PSUs to the Participant’s PSU Account. 

The number of such Dividend Equivalent PSUs (including fractional PSUs) to be credited in respect of each dividend record date will be calculated by
dividing the cash dividends that would have been paid to the Participant if the corresponding PSUs applicable to the Performance Period had been Shares held by the Participant on such dividend record date, by the closing price per Share on the
applicable Stock Exchange on the immediately preceding Trading Day of the dividend payment date for such cash dividends. The number and/or value of such Dividend Equivalent PSUs (as applicable) shall be determined by the Corporation prior to the
Vesting Date relative to any Vested PSUs applicable to the Performance Period. Where applicable, Dividend Equivalent PSUs shall vest and be paid at the same time as the Vested PSUs to which they relate. 

 

	9.	 Eligible PSU Amount: 

Following approval of the Achieved Performance Criteria, the Eligible PSU Amount in respect of each Participant shall be calculated by the Corporation
in accordance with Section 7.4 of the Plan. The Eligible PSU Amount shall be equal to the number of Eligible PSUs relating to the Performance Period, including any Dividend Equivalent PSUs in respect of same, rounded up to the nearest
whole number of Eligible PSUs. 
 Once determined, Eligible PSUs shall be converted to a cash equivalent (based on the Participant’s payroll
currency) by multiplying the number of Eligible PSUs by the volume weighted average (rounded to two decimal places) trading price of a Share on the Participant’s applicable Stock Exchange over the five (5) Trading Days immediately
following the Committee Meeting Date, held to determine the vesting eligibility of PSUs granted hereunder, subject to any Blackout Period (the “Eligible PSU Amount”). 

 

	10.	 Eligible PSU Amount Payment: 

Subject to the terms of the Plan and this Agreement, following the Vesting Date, the Participant shall be eligible to receive a payment representing
the Participant’s Eligible PSU Amount for the Performance Period. Except as otherwise provided in the Plan and this Agreement, such payment shall be distributed to the Participant or, where applicable, the Participant’s legal
representative, as soon as practicable following the Vesting Date and, in any event, prior to December 31 of calendar year following the calendar year in which third Anniversary Date occurs. 

  
 A-4 

 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 time-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

  
 B-1 

	 	 
terminate and be 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-2

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