Document:

EX-10.8

 Exhibit 10.8 
  

 
 ENCANA CORPORATION 

EMPLOYEE STOCK APPRECIATION RIGHTS PLAN 

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

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

 TABLE OF CONTENTS 

 

							
	 Section
	 	 	  	Page	 
			
	1.	 	 PREAMBLE AND DEFINITIONS
	  	 	3	  
			
	2.	 	 ADMINISTRATION
	  	 	9	  
			
	3.	 	 GRANT OF SARS
	  	 	10	  
			
	4.	 	 VESTING OF SARS
	  	 	11	  
			
	5.	 	 TERMINATION OF EMPLOYMENT, DISABILITY, LEAVES OF ABSENCES, ETC.
	  	 	14	  
			
	6.	 	 EARLY EXERCISE AND ACCELERATED VESTING
	  	 	18	  
			
	7.	 	 EFFECTS OF ALTERATION OF SHARE CAPITAL
	  	 	18	  
			
	8.	 	 METHOD OF EXERCISE OF SARS
	  	 	19	  
			
	9.	 	 NO OTHER RIGHTS
	  	 	20	  
			
	10.	 	 GENERAL
	  	 	21	  

 ENCANA CORPORATION 

EMPLOYEE STOCK APPRECIATION RIGHTS PLAN 

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

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

 

	1.	PREAMBLE AND DEFINITIONS 

  

	1.1	Title 

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

	1.2	Purposes of the Plan 

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

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

  

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

  

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

  

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

  

	1.3	Effective Date of the Plan 

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

  

	1.4	Definitions 

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

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

 

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

 

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

  

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

			
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and, in respect of a Non-Canadian Participant, unless otherwise provided in a Grant Agreement, any rules of the New York Stock Exchange and, in respect of
a Canadian Participant, unless otherwise provided in a Grant Agreement, any rules of the Toronto Stock Exchange; 

  

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

  

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

  

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

  

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

  

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

 

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

  

	(k)	“Change in Control” means the date any of the following occurs: 

 (i) any
individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity, or any persons acting jointly or in concert with the foregoing, is, or becomes, the beneficial owner, directly or indirectly, of securities
of the Corporation representing more than 30% of the combined voting power of the Corporation’s then outstanding securities entitled to vote in the election of the directors of the Corporation; 

(ii) the Corporation shall have disposed of: (A) all or substantially all of its assets, such that shareholder approval was required or
should have been required to be obtained under the Canada Business Corporations Act, or (B) assets in any 12-month period representing 50% or more of the total assets of the Corporation, determined as of
the date of the audited financial statements of the Corporation then most recently published; 

			
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 (iii) pursuant to a single election or appointment or a series of elections or appointments
over any period from and after the effective date of the Plan (A) those individuals who at the date of the effective date of the Plan constituted the Board, together with (B) any new or additional director or directors whose nomination for
election by the Corporation’s shareholders, or whose appointment to the Board by the Board, has been approved by at least 75% of the votes cast by all of the directors then still in office, who either were directors at the effective date of the
Plan or whose appointment or nomination for election was previously so approved, cease for any reason to constitute a majority of the Board; or 

(iv) the Board, by resolution duly adopted by the affirmative vote of a simple majority of the votes cast by the Board, determines that, for
purposes of the Plan, a Change in Control of the Corporation has occurred. 
 Securities beneficially owned or controlled or directed by an
employee plan or related trust sponsored or maintained by the Corporation or any of its Affiliates shall not be taken into account in determining whether the threshold percentage in Section 1.4(l)(i) is exceeded. 

For the purposes of this Section 1.4(l): 

(i) the term “acting jointly or in concert” shall have the meaning ascribed to it in Section 159 of the Securities Act
(Alberta), as amended; and 
 (ii) the term “beneficial ownership” shall be interpreted in accordance with Section 158(4) of
the Securities Act (Alberta) and “beneficial owner” shall have a corresponding meaning, except that for purposes of the Plan, options and convertible securities granted by the Corporation to employees, officers or directors shall
not be included in determining beneficial ownership or beneficial owner. 
 For greater certainty, and except as specifically provided in
Sections 1.4(l)(ii) and 1.4(l)(iv), the sale, disposition or other divestiture of an Affiliate, in whole or in part, shall not constitute a Change in Control for the purposes of the Plan. 

 

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

 

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

 

	(n)	 “Committee Meeting Date” means the date of the meeting of the Committee held to review matters
related to the SARs, including the determination of whether and the degree to which the Performance Criteria for a particular Performance Period have been satisfied and constitute “Achieved Performance Criteria”, which meeting shall occur
at 

			
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least once annually and by no later than June 1 of the year immediately following the relevant Performance Period; 

 

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

  

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

 

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

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

(ii) in the case of involuntary termination of the Participant’s 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 the Participant’s 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 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 any notice period which arises or may be deemed to arise upon the termination of employment of the Participant, and shall not include the date the Participant ceases to be an employee of the Corporation or an Affiliate
upon the Participant’s death or Retirement, or the date the Participant commences Short-Term Disability, Long-Term Disability, a Paid Leave of Absence, an Unpaid Leave of Absence, or Family Leave; 

 

	(r)	 “Date of Grant” means, in respect of a particular SAR, the date upon which the Committee grants
the SAR to the Participant. Where the Committee determines to grant any SAR on a date which is within a Blackout Period or where, for any reason: (i) a grant of a SAR falls on a day that is within a Blackout Period; or (ii) the Fair Market
Value of the grant of a SAR is calculated using a Trading Day that is within a Blackout Period, 

			
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then the Date of Grant shall automatically occur and be effective on the sixth Trading Day immediately following the end of such Blackout Period to permit the Fair Market Value to be determined
based on Trading Days which occur immediately following the end of any of such Blackout Period; 

  

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

  

	(t)	“Death or Retirement Exercise Period” means, in respect of a particular SAR granted to a Participant, the period of time extending from the date of the Participant’s death or Date of Retirement, as
applicable, to the earlier of: (i) the date that is six months following the date of the Participant’s death or Date of Retirement, as applicable; and (ii) the Expiry Date of the SAR. Should the Death or Retirement Exercise Period
terminate on a date other than a Trading Day, the Death or Retirement Exercise Period shall terminate on the Close of Business on the last Trading Day prior to that date; 

 

	(u)	“Expiry Date” means: 

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

(ii) in respect of a particular SAR granted to a Non-Canadian Participant on or following
February 24, 2015, the Close of Business on the seventh anniversary of the Date of Grant of such SAR. In respect of a SAR granted to a Canadian Participant prior to February, 24, 2015, the Close of Business on the fifth anniversary of the Date
of Grant of such SAR; 
 Should the Expiry Date of a SAR fall on a date other than a Trading Day, the Expiry Date shall be the Close of
Business on the last Trading Day prior to that date. Should the Expiry Date fall on a date which is within a Blackout Period, the provisions of Section 8.3 hereof shall apply; 

 

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

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

			
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 (ii) in respect of a Canadian Participant, unless otherwise provided in a Grant Agreement,
the volume-weighted average (rounded to two decimal places) of the trading price of a Share on the Toronto Stock Exchange during the immediately preceding five (5) Trading Day period prior to that particular date or, if the Shares did not trade
on the Toronto Stock Exchange on a particular day during such period, the volume-weighted average (rounded to two decimal places) of the trading price of a Share on the Toronto Stock Exchange during the immediately preceding five (5) days on
which the Shares were traded; 
 (iii) if, in respect of a Non-Canadian Participant, the Shares are
not then listed and posted for trading on the New York Stock Exchange or, in respect of a Canadian Participant, are not listed and posted for trading on the Toronto Stock Exchange, then it shall be the fair market value per Share as determined by
the Board in its sole discretion; 
  

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

  

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

  

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

  

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

  

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

 

	(bb)	 “Minimum Performance Criteria” means, in respect of the SARs granted pursuant to a particular
Grant Agreement, that minimum Performance Criteria determined by the 

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

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

  

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

  

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

  

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

  

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

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

 

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

 

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

 

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

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

 

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

  

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

  

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

			
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unless otherwise specified in a Grant Agreement, a day upon which the Toronto Stock Exchange is open for trading; 

 

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

 

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

 

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

  

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

  

	1.5	Construction and Interpretation 

  

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

 

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

  

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

  

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

  

	2.	ADMINISTRATION 

  

	2.1	Administration by Committee 

  

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

  

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

			
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between Participants and SARs) as it shall determine. In addition, the Committee shall have full and complete authority to 

(i) construe and interpret the Plan; 

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

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

 

	2.2	Delegation 

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

	2.3	Determinations Binding 

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

	3.	GRANT OF SARS 

  

	3.1	Designation of SAR Recipients 

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

	3.2	SARs to be Granted in Respect of Future Employment Services 

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

	3.3	Grant Agreement 

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

 

	3.4	Terms and Conditions 

 Subject to the provisions of the Plan, the Committee shall determine the
number of SARs to be granted to each Participant and all other terms, conditions and limitations of the grant of SARs, 

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

	3.5	Base Value 

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

 

	3.6	No Value Prior to Vesting  

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

	3.7	No Certificates 

 No certificates shall be issued with respect to SARs. 

 

	3.8	No Right to Additional SARs 

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

 

	4.	VESTING OF SARS 

  

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

  

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

 

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

  

	4.2	Vesting Conditions 

 The Committee shall specify, at the time SARs are granted to a Participant
pursuant to the Plan, the vesting conditions for such SARs. If no specific determination is made by the Committee at the time SARs are granted to a Participant, and unless otherwise provided in the Grant

			
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Agreement relating to such SARs, the SARs shall vest in the applicable Participant and each shall become a “Vested SAR” in accordance with the following: 

 

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

 (i) 30 percent of the
Time-Based SARs shall vest on the first Anniversary Date; 
 (ii) an additional 30 percent of the Time-Based SARs shall vest on the
second Anniversary Date; and 
 (iii) an additional 40 percent of the Time-Based SARs shall vest on the third Anniversary Date; 

 

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

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

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

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

(C) where the Achieved Performance Criteria for the First Performance Period is equal to or greater than the Median Performance Criteria,
30 percent of the Performance SARs; 
 (ii) an additional number of Performance SARs shall vest on the later of the second Anniversary
Date and the day immediately following the Committee Meeting Date in the year immediately following the Second Performance Period equal to: 

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

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

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

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

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

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

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

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

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

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

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

(C) where the Achieved Performance Criteria for the First Performance Period is equal to or greater than the Maximum Performance Criteria,
30 percent of the Bonus SARs; 
 (ii) an additional number of Bonus SARs shall vest on the later of the second Anniversary Date and the
day immediately following the Committee Meeting Date in the year immediately following the Second Performance Period equal to: 
 (A) where
the Achieved Performance Criteria for the Second Performance Period is equal to or less than the Median Performance Criteria, nil; 
 (B)
where the Achieved Performance Criteria for the Second Performance Period is greater than the Median Performance Criteria but is less than the Maximum Performance Criteria, the amount calculated in accordance with the following formula:
30 percent of the Bonus SARs X (Achieved Performance Criteria – Median Performance Criteria); 

			
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 (C) where the Achieved Performance Criteria for the Second Performance Period is equal to or
greater than the Maximum Performance Criteria, 30 percent of the Bonus SARs; 
 (iii) an additional number of Bonus SARs shall vest on
the later of the third Anniversary Date and the day immediately following the Committee Meeting Date in the year immediately following the Third Performance Period equal to: 

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

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

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

	4.3	Waiver by Participant of Vesting 

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

	5.	TERMINATION OF EMPLOYMENT, DISABILITY, LEAVES OF ABSENCES, ETC. 

  

	5.1	Termination of Employment 

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

	(a)	The Participant shall be entitled to exercise any Vested SARs during the Termination Exercise Period, but only to the extent that such Vested SARs have become Vested SARs pursuant to Section 4.2 on or prior to the
Date Employment Ceases; and 

  

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

 

	5.2	Death or Retirement of Participant 

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

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

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

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

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

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

  

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

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

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

	5.3	Disability of a Participant  

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

			
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Section 5.1 shall apply, or unless the Participant’s death or Retirement occurs during such period, in which case the provisions of Section 5.2 shall apply. 

 

	5.4	Paid Leave of Absence and Family Leave 

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

	5.5	Unpaid Leave of Absence 

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

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

  

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

 

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

  

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

 

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

			
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apply, or unless the Participant’s death or Retirement occurs during such period, in which case the provisions of Section 5.2 shall apply. 

 

	5.6	Forfeiture and Termination of SARs 

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

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

  

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

  

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

 

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

  

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

  

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

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

 

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

  

	6.	EARLY EXERCISE AND ACCELERATED VESTING 

  

	6.1	Extension of Performance Period 

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

 

	6.2	Waiver of Vesting Conditions 

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

	6.3	Accelerated Vesting 

 Notwithstanding any other provision of the Plan, but subject to
Section 6.4, the Committee may pass a resolution which accelerates the vesting of a SAR and which permits a Participant to exercise in full or in part any unexercised SAR, whether or not the SAR has otherwise become a Vested SAR, at such time
or times and/or in such manner following the passing of such resolution as is specified in the resolution, which resolution may be passed for any reason as determined by the Committee which, in the sole opinion of the Committee, warrants altering
the provisions pursuant to which a SAR vests or is exercisable, including, without limitation, in respect of a Bonus SAR, upon the occurrence of a Change in Control. 
  

	6.4	Accelerated Vesting on Change of Control 

 Notwithstanding any other provision of the Plan, upon
the occurrence of a Change in Control, all Participants shall be entitled, on the date of the Change in Control, to exercise in full or in part any unexercised Time-Based SAR and Performance SAR (irrespective of whether such Time-Based SAR or
Performance SAR has become a Vested SAR in accordance with Section 4.2(a) and 4.2(b) as applicable) until the Expiry Date. 

			
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	7.	EFFECTS OF ALTERATION OF SHARE CAPITAL 

  

	7.1	General 

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

 

	8.	METHOD OF EXERCISE OF SARS 

  

	8.1	Exercise of SAR 

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

 

	8.2	Exercises only during SAR Period 

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

	8.3	Blackout Period 

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

	8.4	Payment in Respect of SAR 

  

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

  

	(b)	 The Corporation may, in its sole discretion, elect to satisfy, in whole or part, the cash payment obligation in
Section 8.4(a) by instructing an independent broker to acquire a number of fully paid Shares on the open market on behalf of the Participant the number 

			
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of such Shares being the result obtained when the amount of cash which would have otherwise been paid pursuant to Section 8.4(a) is divided by an amount equal to the closing price per Share, in
respect of a Non-Canadian Participant, unless otherwise specified in a Grant Agreement, on the New York Stock Exchange and, in respect of a Canadian Participant, unless otherwise specified in a Grant
Agreement, on the Toronto Stock Exchange, on the last Trading Day immediately preceding the date of payment. In such a case, the independent broker will purchase such Shares on the open market as soon as practicable thereafter and within the limits
imposed by Section 8.4(c), if applicable, and the broker will deliver such Shares to the Participant. The Corporation will pay all brokerage fees arising in connection with the acquisition of the Shares of the Corporation by the broker on the open
market. 

  

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

  

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

 

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

  

	9.	NO OTHER RIGHTS 

  

	9.1	No Rights of Shareholder 

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

	9.2	No Right to Employment 

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

	9.3	No Rights Unless Vested SARs Exercised 

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

			
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	10.	GENERAL 

  

	10.1	Compliance with Applicable Law  

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

	10.2	Subject to Applicable Law 

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

	10.3	Withholdings 

  

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

  

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

  

	10.4	Amendment and Termination 

  

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

  

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

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

  

	10.5	Administration Costs 

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

	10.6	Assignment 

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

	10.7	Unfunded Obligation 

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

 

	10.8	No Representation as to Price 

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

 

	10.9	Compliance with Section 409A 

 Notwithstanding any provision of the Plan to the contrary, it is
intended that the provisions of the Plan comply with Section 409A, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. Each US Participant
is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or for the account of such US Participant in connection with the Plan or any other Plan maintained by the Corporation or an Affiliate (including
any taxes and 

			
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penalties under Section 409A), and neither the Corporation nor any Affiliate shall have any obligation to indemnify or otherwise hold such US Participant (or any beneficiary) harmless from any or
all of such taxes or penalties. 
 * * * *EX-10.9

 Exhibit 10.9 

ENCANA CORPORATION 

STOCK APPRECIATION RIGHTS PLAN 

[EXECUTIVE] 20●     STOCK APPRECIATION RIGHTS GRANT AGREEMENT 

 

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

 THIS STOCK APPRECIATION RIGHTS GRANT AGREEMENT, including Schedule “A”” and “B” hereto
(collectively, this “Agreement”) is made between Encana Corporation (the “Corporation”) and the Participant listed above, an eligible employee of the Corporation or one of its Affiliates (“Employee”
or “You”). 
 WHEREAS the Corporation has established the Encana Corporation Employee Stock Appreciation Rights Plan (the
“Plan”) for eligible employees of the Corporation and its Affiliates; 
 AND WHEREAS the Board of Directors (the
“Board”) of the Corporation has authorized the granting to You of certain Stock Appreciation Rights (“SARs”), in accordance with and subject to the terms and conditions of the Plan and this Agreement; 

AND WHEREAS the Plan was amended effective February 23, 2015 (the “Effective Date”) to provide for (unless otherwise specified by
the Committee) a new SAR Period not to exceed seven (7) years from the Date of Grant of the SAR (the “Extended Term”), in respect of each SAR granted on or following the Effective Date; 

AND WHEREAS with the Extended Term does not apply to or amend the Term or Expiry Date of a SAR granted to the Participant prior to the Effective Date,
the SAR Period of which shall remain a period not exceeding five (5) years from Date of Grant of such SAR; 
 NOW THEREFORE THIS AGREEMENT
WITNESSETH that in consideration of 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.	The terms and conditions of the Plan are hereby incorporated by reference as terms and conditions of this Agreement and all capitalized terms used herein, unless expressly defined in a different manner, have the
meanings set out in the Plan. “Grant Date” as referred to above means the “Date of Grant” as defined and used in the Plan and in this Agreement. 

 

	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 it. 

  

	4.	Effective as of the Date of Grant, the Corporation hereby grants to You, in accordance with and subject to the terms and conditions of the Plan and this Agreement, SARs in such number and such type as set out above.
SARs granted to You hereunder are hereby classified as “Time-Based SARs” and are hereinafter referred to as “Time-Based SARs” for purposes of this Agreement and the Plan. The conditions of vesting of such Time-Based SARs are as
set forth in the Plan, as further clarified in Schedule “A” attached hereto. 

	5.	You hereby acknowledge that the Extended Term applies only to a grant of SARs made on or following the Effective Date and does not apply to or impact the Expiry Date or Terms of SAR grants made to You prior to such
date. 

  

	6.	The determination by the Board or the Committee of any question which may arise as to the interpretation or implementation of the Plan or any of Time-Based SAR granted hereunder shall be final and binding on You and all
other persons claiming or deriving rights through You. 

  

	7.	The Corporation’s grant of any Time-Based SARs hereunder or its obligation to make any payments under the Plan is subject to compliance with Applicable Law. As a condition of participating in the Plan, You agree to
comply with all such Applicable Law and to furnish to the Corporation or its Affiliate (as applicable) all information and undertakings as may be required to permit such compliance with Applicable Law. 

 

	8.	The Plan contains specific provisions including, without limitation, in Article 5, governing Your rights upon Termination of Employment, Death, Retirement, Disability, and Leave of Absence. 

 

	9.	Upon the occurrence of a Termination of Employment of You, You shall only be entitled to exercise any Vested SARs during the Termination Exercise Period, but only to the extent that such Vested SARs have become Vested
SARs pursuant to Section 4.2 of the Plan on or prior to the Date Employment Ceases. For greater certainty, notwithstanding Section 4.2 of the Plan, SARs which do not become Vested SARs on or prior to the Date Employment Ceases shall not
thereafter become Vested SARs. 

  

	10.	Neither the Plan nor any action taken thereunder shall interfere with the right of Your employer to terminate Your employment at any time. Neither shall any period of notice, if any, nor any payment in lieu thereof,
upon termination of employment be considered as extending the period of employment for the purposes of the Plan. 

  

	11.	Subject to Section 10.4 of the Plan, this Agreement and the Plan may be amended or terminated at any time by the Committee in whole or in part. 

 

	12.	This Agreement and the rights of all parties and the construction of each provision hereof and of the Plan and the Time-Based SARs granted hereunder shall be construed according to the laws of the Province of Alberta
and the federal laws of Canada, as applicable herein. In the event of a dispute, You agree to submit to the jurisdiction of the Alberta courts. 

  

	13.	 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 Section 409A, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. 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 

  
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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. 

  

	14.	You hereby consent to the exchange of information and documents between Yourself and the Corporation including, without limitation electronically over the Internet or by e-mail,
if to You at the e-mail address you have most recently provided to the Corporation, and that any such information and documents sent or received in electronic form shall be the equivalent of original written
paper documents and that your electronic acceptance of same shall constitute your written acceptance on consent thereto. You also hereby consent to the collection, use and disclosure of Your personal information by and between the Corporation and
its Affiliates and, as necessary, by and with any service provider(s) as may be retained by the Corporation or its Affiliates from time to time, as may be reasonably necessary for purposes of administering and managing Your SAR grant, or as required
by Applicable Law. 

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

 

	
	ENCANA CORPORATION
	
	Mike Williams
	Executive Vice-President, Corporate Services

  
 - 3 - 

 Schedule “A” 

The Time-Based SARs granted to You hereunder will become Vested SARs only upon satisfaction of the vesting conditions in Section 4.2 of the Plan. For the
purposes of this grant, the following terms specified in Section 4.2 of the Plan shall apply: 
  

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

  

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

  

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

 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

  
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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. 

  
 - 3 -

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