Document:

EX-10.38

 Exhibit 10.38 
  

 
 RESTRICTED SHARE UNIT PLAN FOR DIRECTORS 

OF ENCANA CORPORATION 
 Effective
February 14, 2018. 

 Table of Contents 
  

							
	 Section
	 	 	  	Page	 
			
	 1.
	 	 PREAMBLE AND DEFINITIONS
	  	 	1  	 
			
	 2.
	 	 CONSTRUCTION AND INTERPRETATION
	  	 	5  	 
			
	 3.
	 	 EFFECTIVE DATE AND RIGHTS FOR CONTINUED SERVICE
	  	 	6  	 
			
	 4.
	 	 RSU GRANTS
	  	 	6  	 
			
	 5.
	 	 ACCOUNTS, DIVIDEND EQUIVALENTS AND REORGANIZATION
	  	 	7  	 
			
	 6.
	 	 UNFUNDED STATUS OF PLAN
	  	 	8  	 
			
	 7.
	 	 SETTLEMENT OF RSU AWARDS
	  	 	8  	 
			
	 8.
	 	 CURRENCY
	  	 	9  	 
			
	 9.
	 	 SHAREHOLDER RIGHTS
	  	 	9  	 
			
	 10.
	 	 ADMINISTRATION
	  	 	9  	 
			
	 11.
	 	 ASSIGNMENT
	  	 	11	 

 RESTRICTED SHARE UNIT PLAN FOR DIRECTORS 

OF ENCANA CORPORATION 
 (Effective
February 14, 2018) 
  

	1.	 PREAMBLE AND DEFINITIONS 

 

	 	1.1	 Title. 

The Plan described in this document shall be called the “Restricted Share Unit Plan for Directors of Encana Corporation”.

  

	 	1.2	 Purposes of the Plan. 

The purposes of the Plan are: 
  

	 	(a)	 to promote a greater alignment of interests between non-employee directors and
the shareholders of the Corporation with a view to enhancing long-term shareholder value; 

  

	 	(b)	 to assist non-employee directors of the Corporation to meet share ownership
requirements; and 

  

	 	(c)	 to attract and retain qualified individuals to act as non-employee directors of
the Corporation. 

  

	 	1.3	 Definitions. 

 

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

  

	 	1.3.2	 “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. 

 

	 	1.3.3	 “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 from time to time). 

  

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

 

	 	1.3.5	 “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. 

  

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

  

	 	(a)	 any individual, partnership, firm, corporation, association, trust, 

 

			
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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 1.3.6(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 1.3.6(b)(1), 1.3.6(b)(2) and 1.3.6(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 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; 

			
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 Restricted Share Unit Plan for Directors

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	 	(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 1.3.6: 

 

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

  

	 	(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. 

  

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

  

	 	  1.3.8	 “Committee” means a 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. 

 

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

  

	 	1.3.10	 “Date of Termination” means the date of the Participant’s Termination of Service.

  

	 	1.3.11	 “Dividend Equivalent RSU” has the meaning set out in Section 5.2. 

 

	 	1.3.12	 “Effective Date” has the meaning set out in Section 3.1. 

 

	 	1.3.13	 “Grant Agreement” means an agreement between the Corporation and the Participant under which a RSU is
granted, as contemplated by 

			
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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.

  

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

 

	 	1.3.15	 “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. 

 

	 	1.3.16	 “Participant” means such non-employee director of the
Corporation as the Committee may designate from time to time as eligible to participate in the Plan. 

  

	 	1.3.17	 “Plan” means this Restricted Share Unit Plan for Directors of Encana Corporation, including any
schedules or appendices hereto, as amended from time to time. 

  

	 	1.3.18	 “RSU” means a restricted share unit granted to a Participant under the Plan that is represented by a
bookkeeping entry on the books of the Corporation. 

  

	 	1.3.19	 “RSU Account” has the meaning set out in Section 5.1. 

 

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

 

	 	1.3.21	 “Settlement Date” means, in respect of a grant of RSUs, the date or dates specified in the
Participant’s applicable Grant Agreement upon which the Participant’s RSUs shall become payable in accordance with Section 7, subject to the terms and conditions of the Plan and the applicable Grant Agreement. 

 

	 	1.3.22	 “Settlement Date RSU Value” means with respect to each RSU, except as otherwise provided in the
applicable Grant Agreement, the Market Value of the applicable RSU on the Settlement Date; provided that where, for any reason, the Market Value of the applicable RSU on the Settlement Date would be calculated using a Trading Day that is within a
Blackout Period, then the deemed Settlement Date solely for purposes of 

			
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calculating the Settlement Date RSU Value shall be the sixth Trading Day immediately following the end of such Blackout Period to permit the Settlement Date RSU Value to be determined based on
Trading Days which occur immediately following the end of any such Blackout Period. 

  

	 	1.3.23	 “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.

  

	 	1.3.24	 “Stock Exchange” means, in respect of a RSU, the Toronto Stock Exchange or the New York Stock Exchange
as specified in the Participant’s respective Grant Agreement relating to such RSU 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. 

 

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

  

	 	1.3.26	 “Termination of Service” means an event by which the Participant ceases to be a director of the
Corporation, and, for greater certainty, shall include an event whereby the Participant ceases to be a director of the Corporation upon the Participant’s death. 

 

	 	1.3.27	 “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. 

  

	 	1.3.28	 “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. 

 

	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 RSU 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 

			
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or enforcement of any other provision or part thereof. 

  

	 	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 RIGHTS FOR CONTINUED SERVICE 

 

	 	3.1	 Effective Date. The Corporation is establishing the Plan effective February 14, 2018 (the
“Effective Date”). 

  

	 	3.2	 No Rights for Continued Service. Nothing herein contained shall be deemed to give any person the
right to continue service as a director of the Corporation. 

  

	4.	 RSU GRANTS  

  

	 	4.1	 Annual Grant of RSUs. Each Participant may receive in respect of any calendar year, a grant of RSUs
in such number and subject to such terms and conditions as the Committee may determine is appropriate having regard to the purposes of the Plan. Each RSU 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 Price. The applicable grant price for each RSU granted to a Participant hereunder shall be fixed by
the Committee effective as of the Grant Date, but shall not be less than the Market Value on the applicable Stock Exchange. 

  

	 	4.3	 Grant Agreement. Each RSU 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 RSUs are granted to the Participant, the basis upon which such RSUs will be valued, whether such
RSUs (and Dividend Equivalent RSUs relating thereto) are payable to the Participant in Canadian currency or United States currency, and the applicable Stock Exchange to be used to determine the Market Value of such RSUs, any other Share price used
to determine the value of such RSUs, and the applicable Settlement Date. 

  

	 	4.4	 RSUs. Subject to the terms and conditions of the Plan and the applicable Grant Agreement, each RSU
will give a Participant the right to receive a payment in cash in an amount and on such Settlement Dates as may be determined in accordance with the terms of the Plan and the applicable Grant Agreement. 

 

	 	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 RSUs, or any grant thereof, including: 

  

	 	(a)	 any additional conditions with respect to the settlement of RSUs, in whole or in part, or the payment of cash under the
Plan; 

  

	 	(b)	 exercising such discretion as may be set out in the Plan or a particular

			
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Grant Agreement; and 

  

	 	(c)	 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 10.8, the Committee may, in its discretion, after the Grant Date of a RSU, waive any term
or condition in respect of such RSU 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 RSU 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 certificates shall be issued with respect to RSUs. 

 

	5.	 ACCOUNTS, DIVIDEND EQUIVALENTS AND REORGANIZATION 

 

	 	5.1	 RSU Account. An account, called a “RSU Account”, shall be maintained by the Corporation
for each Participant and will be credited with such notional grants of RSUs as may be received by a Participant from time to time pursuant to Sections 4.1 and 5.2. RSUs will be fully vested upon being credited to a RSU Account and the entitlement to
future payment for such RSUs in accordance with the Plan shall not thereafter be subject to satisfaction of any requirements as to any minimum period of membership on the Board. 

 

	 	5.2	 Dividend Equivalent RSUs. In the event cash dividends are paid by the Corporation on the Shares,
additional RSUs shall be credited to the Participant’s RSU Account in accordance with this Section 5.2 (“Dividend Equivalent RSUs”). The number of such Dividend Equivalent RSUs (including fractional RSUs) and the date upon which
such Dividend Equivalent RSUs are credited to the Participant’s RSU Account shall be determined by the Corporation in accordance with the applicable Grant Agreement. Except where provided otherwise in a Grant Agreement, Dividend Equivalent RSUs
shall be paid to the Participant at the same time as the RSUs 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 RSUs 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 RSUs in the Participant’s RSU Account on some other appropriate basis, all as determined by the Board in its discretion. 

			
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	6.	 UNFUNDED STATUS OF PLAN 

 

	 	6.1	 Unfunded Status of Plan. It is intended that this Plan constitute an “unfunded” plan. The
Committee may authorize the creation of trusts or other arrangements to meet the obligations created under this Plan to make payments; provided, however, that unless the Committee otherwise determines, the existence of such trusts or other
arrangements is consistent with the “unfunded” status of this Plan. 

  

	7.	 SETTLEMENT OF RSU AWARDS 

 

	 	7.1	 Payment on Settlement Date. Subject to Sections 7.2 and 7.3, RSUs shall be payable on the
Settlement Date(s) set forth in the applicable Grant Agreement, whereby each Participant shall be entitled to receive in cash a payment equal to the Settlement Date RSU Value in respect of each RSU credited to the Participant’s RSU Account for
the applicable Settlement Date (rounded up to the nearest whole number of RSUs) relating to a particular grant under Section 4.1. Except as otherwise provided in Sections 7.2 and 7.3 and 10.8 and/or the applicable Grant Agreement(s), the cash
in the amount determined pursuant to this Section 7.1 shall be paid to the Participant or his legal representative, as applicable, as soon as practicable following the applicable Settlement Date(s) set forth in the applicable Grant Agreement(s)
and, in any event, prior to the earlier of December 31 of the third calendar year following the calendar year in which the Grant Date occurs and within 30 days after the applicable Settlement Date. 

 

	 	7.2	 Termination of Service. In the event of the Participant’s Termination of Service, all RSUs
credited to the Participant’s RSU Account as of the Date of Termination shall become payable to the Participant or his legal representative, as applicable, as soon as practicable following the Date of Termination at the Market Value as of the
Date of Termination; provided that any Section 409A Amount that is to become payable following the U.S. Participant’s Termination of Service, such U.S. Participant shall be deemed to have experienced a Termination of Service when (and only
when) a separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)) has occurred. For clarity, no additional RSUs (whether pursuant to Section 4.1 or in the form of
Dividend Equivalent RSUs) shall be granted to the Participant following the Participant’s Termination of Service. 

  

	 	7.3	 Change in Control.  

 

	 	7.3.1	 Settlement. In the event of a Change in Control, all RSUs credited to a RSU Account shall, except as
otherwise provided in Section 7.3.3 below, become payable upon the occurrence of such Change in Control. 

  

	 	7.3.2	 Payment. As soon as practicable, and in any event within 30 days, following a Change in Control, the
Participant shall receive in cash a payment equal to the number of RSUs credited to the Participant’s RSU Account at the time of the Change in Control (rounded up to the nearest whole number of RSUs) multiplied by the price at which the Shares
are valued for the purpose of the transaction or series of transactions giving rise to the Change in Control, or if there is no such transaction or transactions, the simple average of the closing price per Share on the

			
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applicable Stock Exchange on each day in the thirty day period ending on the date of the Change in Control. 

 

	 	7.3.3	 Payment of Section 409A Amounts. 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 7.3.2, 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 in which such amounts would have been paid had there been no Change in Control. 

 

	8.	 CURRENCY 

  

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

  

	9.	 SHAREHOLDER RIGHTS 

 

	 	  9.1	 No Rights to Shares. RSUs are not Shares and the grant of RSUs will not entitle a Participant to
any shareholder rights, including, without limitation, voting rights, dividend entitlement or rights on liquidation. 

  

	10.	 ADMINISTRATION 

 

	 	10.1	 Committee. Unless otherwise determined by the Board, or as specified in Section 10.6, the Plan
shall be administered by the Committee. 

  

	 	10.2	 Compliance with Laws and Policies. The Corporation’s issuance of any RSUs and its obligation
to make any payments 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. 

  

	 	10.3	 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. 

  

	 	10.4	 Withholdings. Notwithstanding any other provision in this Plan, to ensure that the Corporation will
be able to comply with the applicable provisions of any 

			
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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 or the
Corporation shall withhold or cause to be withheld from any amount payable to a Participant, either under this Plan, or otherwise, such amount as may be necessary to permit the Corporation to so comply. 

 

	 	10.5	 No Additional Rights. Neither designation of a director as a Participant nor the grant of any RSUs
to any Participant at any time entitles any person to the grant, or any additional grant, as the case may be, of any RSUs under the Plan. 

  

	 	10.6	 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 RSUs 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. 

 

	 	10.7	 Administration Costs. The Corporation will be responsible for all costs relating to the
administration of the Plan. 

  

	 	10.8	 Section 409A. 

 

	 	10.8.1	 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 10.8 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. 

 

	 	10.8.2	 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.

  

	 	10.8.3	 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 7.4.3, cash to be paid in respect of any Section 409A Amount shall in all events be paid within the calendar year
in which the applicable 

			
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Settlement 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 RSUs shall be paid at the same time as the RSU to which such Dividend Equivalent RSU relates. 

  

	 	10.8.4	 No Acceleration of Payments. In no event shall a change in a period of grant, a waiver, amendment,
or other modification of any terms or conditions of a RSU 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 period of grant, waiver, amendment, modification, exercise of discretion, or determination. 

 

	 	10.8.5	 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. 

 

	11.	 ASSIGNMENT 

  

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

 * * * *EX-10.39

 Exhibit 10.39 

RESTRICTED SHARE UNIT PLAN 
 FOR
DIRECTORS OF ENCANA CORPORATION 
 20● RSU GRANT AGREEMENT 

 

			
	Participant Name:	  	###PARTICIPANT_NAME###
		
	Grant Date:	  	###GRANT_DATE###
		
	Number of RSUs	  	###TOTAL_AWARDS###
		
	Currency of RSUs:	  	USD
		
	Stock Exchange:	  	NYSE
		
	Settlement Date:	  	###SETTLEMENT_SCHEDULE_TABLE###

 This Grant Agreement (this “Agreement”) is between you (“Participant” or
“You”) and Encana Corporation (the “Corporation”). 
 WHEREAS the Corporation has established the
Restricted Share Unit Plan for Directors of Encana Corporation (the “Plan”); 
 AND WHEREAS You are non-employee director of the Corporation and the Board of Directors of the Corporation (the “Board”) has authorized the granting to You of certain Restricted Share Units (“RSUs”) in
such number as set out above and as further described in this Agreement pursuant to and in accordance with the provisions of the Plan; 
 NOW
THEREFORE, THIS AGREEMENT WITNESSETH that in consideration of other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties, it is agreed by and between the parties hereto as follows: 

 

	1.	 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 in this Agreement, shall have the meanings set out in the Plan. 

  

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

 

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

  

	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, RSUs in such number as set out above and subject to such other terms or conditions as the Committee or the Board, as applicable, may determine is appropriate having regard to the purposes of the
Plan. 

  

	5.	 RSUs granted to You on the Grant Date will only be payable subject to the terms and conditions set out in the Plan
(including, without limitation, Section 7 thereof), and this Agreement. 

  

	6.	 Dividend Equivalent RSUs shall be determined separately with respect to the RSUs applicable to each grant under
Section 4.1 of the Plan. Subject to the terms and conditions of 

  
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the Plan (including, without limitation, Section 5.2 thereof) and this Agreement, where cash dividends are paid by the Corporation on the Shares between the Grant Date and the Settlement
Date in respect of a particular grant under Section 4.1 of the Plan, the Corporation shall credit additional Dividend Equivalent RSUs to the Participant’s RSU Account. The number of such Dividend Equivalent RSUs (including fractional RSUs)
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 RSUs applicable to the particular grant under Section 4.1 of the Plan (and any
previously granted Dividend Equivalent RSUs related to such RSUs) as at such dividend record date had been Shares 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. Dividend Equivalent RSUs shall vest and be paid at the same time as the RSUs to which they relate. 

  

	7.	 The determination by the Committee or the Board, as applicable, of any question which may arise as to the
interpretation and implementation of the Plan, this Agreement or any RSUs granted pursuant to the Plan or hereunder shall be final and binding on You and all other persons claiming or deriving rights through You. 

 

	8.	 The Corporation’s grant of any RSUs or any obligation to make any payments under the Plan is subject to
compliance with Applicable Law. As a condition of participating in the Plan, You hereby agree to comply with all such Applicable Law and agree to furnish to the Corporation all information and undertakings as may be required to permit compliance
with such Applicable Law. Without limiting the generality of the foregoing, You hereby acknowledge and agree that any payment or settlement to You in respect of Vested RSUs shall be subject to such taxes and other withholdings or deductions as may
be required by Applicable Law. 

  

	9.	 The Plan contains specific conditions and provisions including, without limitation, in Section 7 thereof, with
respect to governing Your rights with respect to the Plan and this Agreement upon a Termination of Service and/or upon a Change in Control. Without restricting the generality of Section 3 hereof, You further agree that You have read all of the
provisions of the Plan and this Agreement and agree to be bound by them. 

  

	10.	 Upon the occurrence of a Termination of Service of You, pursuant to Section 7.2 of the Plan, You shall not be
entitled to any further grant of RSUs. You agree You have read these provisions of the Plan and agree to be bound by them.  

  

	11.	 Neither the Plan nor any action taken thereunder shall be deemed to give You the right to continue service as a
director of the Corporation. 

  

	12.	 You shall have no rights whatsoever as a shareholder in respect of any Shares, including, without limitation, voting
rights, dividend entitlement or rights on liquidation. 

  

	13.	 Subject to Section 10.6 of the Plan, this Agreement may be amended or terminated at any time by the Committee or
the Board in whole or in part and the Plan may be amended or terminated at any time by the Board in whole or in part.  

  

	14.	 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. 

  

	15.	 This Agreement and the rights of all parties and the construction of each and every provision hereof and the Plan and
any RSUs 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,

  
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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. 

 

	16.	 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 a Termination of Service 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 a Termination of Service 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 the date of such separation from
service (or, if earlier than the end of such six-month period, Your date of death). 

  

	17.	 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 RSUs 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 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 

  
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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, contact Encana’s Privacy Officer at privacy@encana.com 
  

	18.	 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. 

 

	
	ENCANA CORPORATION
	
	   

	Mike Williams
	Executive Vice-President, Corporate Services

  
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