Document:

exv10w2

Exhibit 10.2

TERMS AND CONDITIONS

	 	 	 
	Participant Name:
	 	 
	Grant Name:
	 	 
	Issue Date:

	 	February xx, 2010
	Expiry Date:

	 	February xx, 2015
	Grant Price:
	 	 
	Total Number of Options with TSARs:
	 	 

THIS OPTION AND TANDEM STOCK APPRECIATION RIGHTS AGREEMENT is made between Cenovus Energy Inc. (the
“Corporation”) and the Participant listed above (the “Participant”), an eligible employee of the
Corporation or one of its Related Corporations.

WHEREAS the Corporation has established a Key Employee Stock Option Plan (the “Plan”) for employees
of the Corporation and its Related Corporations (the “Affiliated Entities” or, individually, an
“Affiliated Entity”);

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

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

1. DEFINITIONS

In this Agreement, the capitalized terms shall have the meanings set forth in Schedule “A” hereto.
“Issue Date” as stated above means the “Date of Grant” as used in this Agreement.

2. GRANT OF OPTIONS AND STOCK APPRECIATION RIGHTS

In accordance with the Plan, and subject to the terms and conditions herein, the Corporation hereby
grants to the Participant the Options. Each Option granted to the Participant hereunder shall
entitle the Participant to acquire one Share, in accordance with the terms and conditions hereof.
Each Option granted to the Participant hereunder shall have a Tandem Stock Appreciation Right
(“TSAR”) associated with it. Except as otherwise noted herein, each associated TSAR shall be
subject to the same terms and conditions as the related Option.

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

3. EVIDENCE OF GRANT

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

4. CLASSIFICATION OF OPTIONS

The Options granted to the Participant hereunder are classified as follows:

 

 

	(a)	 	One-third of the Options shall constitute “Time-Based Options”;
	 
	(b)	 	One-third of the Options shall constitute “Performance Options”; and
	 
	(c)	 	One-third of the Options shall constitute “Bonus Options”.

5. VESTING OF OPTIONS

	(a)	 	Subject to Section 5(b) and Sections 6 to 12, the Options shall vest in the Participant and
become Vested Options as follows:

	 	(i)	 	in respect of the Time-Based Options:

	 	(A)	 	30 percent of the Time-Based Options shall vest on the first
Anniversary Date;
	 
	 	(B)	 	an additional 30 percent of the Time-Based Options shall vest on
the second Anniversary Date; and
	 
	 	(C)	 	an additional 40 percent of the Time-Based Options shall vest on
the third Anniversary Date;

	 	(ii)	 	in respect of the Performance Options:

	 	(A)	 	a number of Performance Options 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:

	 	1.	 	where the Achieved Performance Criteria for the First
Performance Period is equal to or less than the Minimum Performance
Critieria, nil;
	 
	 	2.	 	where the Achieved Performance Criteria for the First
Performance Period is greater than the Minimum Performance Critieria but is
less than the Median Performance Criteria, the amount calculated in
accordance with the following formula: 30 percent of the Performance Options
X (Achieved Performance Criteria — Minimum Performance Critieria);
	 
	 	3.	 	where the Achieved Performance Criteria for the First
Performance Period is equal to or greater than the Median Performance
Critieria, 30 percent of the Performance Options;

	 	(B)	 	an additional number of Performance Options 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:

	 	1.	 	where the Achieved Performance Criteria for the Second
Performance Period is equal to or less than the Minimum Performance
Criteria, nil;
	 
	 	2.	 	where the Achieved Performance Criteria for the Second
Performance Period is greater than the Minimum Performance Critieria but is
less than the Median Performance Critieria, the amount calculated in
accordance with the following formula: 30 percent of the Performance Options
X (Achieved Performance Criteria — Minimum Performance Criteria);
	 
	 	3.	 	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 Options;

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	 	(C)	 	an additional number of Performance Options 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:

	 	1.	 	where the Achieved Performance Criteria for the Third
Performance Period is equal to or less than the Minimum Performance
Criteria, nil;
	 
	 	2.	 	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
Options X (Achieved Performance Criteria — Minimum Performance Criteria);
	 
	 	3.	 	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 Options;

	 	(iii)	 	in respect of the Bonus Options:

	 	(A)	 	a number of Bonus Options 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:

	 	1.	 	where the Achieved Performance Criteria for the First
Performance Period is equal to or less than the Median Performance Criteria,
nil;
	 
	 	2.	 	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 Options X
(Achieved Performance Criteria — Median Performance Criteria);
	 
	 	3.	 	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 Options;

	 	(B)	 	an additional number of Bonus Options 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:

	 	1.	 	where the Achieved Performance Criteria for the Second
Performance Period is equal to or less than the Median Performance Criteria,
nil;
	 
	 	2.	 	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 Options X
(Achieved Performance Criteria — Median Performance Criteria);
	 
	 	3.	 	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 Options;

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

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	 	1.	 	where the Achieved Performance Criteria for the Third
Performance Period is equal to or less than the Median Performance Criteria,
nil;
	 
	 	2.	 	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 Options X
(Achieved Performance Criteria — Median Performance Criteria);
	 
	 	3.	 	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 Options.

	(b)	 	Upon application of the vesting conditions in Section 5(a), the number of Time-Based Options,
Performance Options, or Bonus Options, as applicable, that shall become Vested Options shall
be determined by rounding the result up to the nearest whole number of Time-Based Options,
Performance Options, or Bonus Options, as applicable, to a maximum of the total number of
Options granted under this Agreement. No fractional Options shall become Vested Options and
no cash or other compensation shall be paid to the Participant at any time in lieu of any
fractional Options.
	 
	(c)	 	Subject to Sections 6 to 12, the Participant shall be entitled to exercise or surrender all
or any number of the Vested Options, in accordance with Section 14, during the period
extending from the Vesting Date of such Vested Option pursuant to Section 5(a) to the Expiry
Date or such earlier termination date of the Vested Option as provided herein.
	 
	(d)	 	As an alternative to the exercise of a Vested Option, the Participant is eligible to
surrender any Vested Option pursuant to an associated TSAR, in accordance with Section 14
hereof. Upon the Participant surrendering to the Corporation the Vested Options to purchase a
specified number of Shares, the Participant shall receive a cash payment equal to the
Appreciated Value multiplied by the number of Vested Options surrendered, less required
applicable statutory and other withholdings. Thereafter, for greater certainty, such number
of Vested Options so surrendered with respect to such specified number of Shares shall be
cancelled and terminated and the Participant will have no further right, title or interest in
such surrendered Vested Options.

6. TERMINATION OF EMPLOYMENT

	(a)	 	Upon the occurrence of a Termination of Employment, the Participant shall be entitled to
exercise or surrender any Vested Options during the Termination Exercise Period, but only to
the extent that such Vested Options have become Vested Options pursuant to Section 5(a) on or
prior to the Date Employment Ceases.
	 
	(b)	 	For greater certainty, notwithstanding Section 5(a), Options which do not become Vested
Options on or prior to the Date Employment Ceases shall not thereafter become Vested Options.

7. RETIREMENT OF PARTICIPANT

	(a)	 	In the event the Participant ceases to be an employee of the Corporation or an Affiliated
Entity by reason of the Participant’s Retirement 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 or surrender any Vested Options
during the Retirement Exercise Period, but only to the extent that such Vested Options
have become Vested Options pursuant to Section 5(a) on or prior to the date of the
Participant’s Date of Retirement, as applicable; and

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	 	(ii)	 	notwithstanding Section 5(a), Options which do not become Vested Options on or
prior to the date of the Participant’s Date of Retirement, as applicable, shall not
thereafter become Vested Options.

	(b)	 	In the event the Participant ceases to be an employee of the Corporation or an Affiliated
Entity by reason of the Participant’s Retirement on a date that 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 Options shall continue to be and become Vested Options in accordance
with the provisions of Section 5(a)(i) and the Participant shall be entitled to
exercise or surrender any Time-Based Options which become Vested Options until the
Expiry Date; and
	 
	 	(ii)	 	Performance Options and Bonus Options shall continue to be and become Vested
Options in accordance with the provisions of Sections 5(a)(ii) and 5(a)(iii),
respectively, and the Participant shall be entitled to exercise or surrender any
Performance Options or Bonus Options which become Vested Options until the Expiry Date;

	(c)	 	In the event the Participant ceases to be an employee of the Corporation or an Affiliated
Entity by reason of the Participant’s Retirement on a date that 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
Participant’s Date of Retirement, as applicable, to the Expiry Date, to exercise or
surrender, in full or in part, any unexercised Time-Based Option (irrespective of
whether such Option has become a Vested Option in accordance with Section 5(a)(i)); and
	 
	 	(ii)	 	Performance Options and Bonus Options shall continue to be and become Vested
Options in accordance with the provisions of Sections 5(a)(ii) and 5(a)(iii),
respectively, and the Participant shall be entitled to exercise or surrender any
Performance Options or Bonus Options which become Vested Options until the Expiry Date.

8. DEATH OF PARTICIPANT

In the event the Participant ceases to be an Employee of the Corporation or an Affiliated Entity by
reason of the Participant’s death:

	(i)	 	the Participant’s estate shall be entitled, during the period extending from the
Participant’s date of death to the Expiry Date, to exercise or surrender, in full or in part,
any Vested Options; and
	 
	(ii)	 	Time-Based, Performance and Bonus Options shall continue to be and become Vested Options in
accordance with the provisions of Section 5(a) during the period extending from the
Participant’s date of death to the date that is 12 months from the Participant’s date of death
and the Participant’s estate shall be entitled to exercise or surrender, in full or in part,
the Time-Based, Performance and Bonus Options which become Vested Options, to the Expiry Date.

9. DISABILITY OF PARTICIPANT

In the event of the Participant’s Short-Term Disability or Long-Term Disability, Options shall
continue to be and become Vested Options in accordance with the provisions of Section 5(a) and the
Participant shall be entitled to exercise or surrender any Vested Options during the period of such
Short-Term Disability or Long-Term Disability and thereafter, unless there occurs a Termination of
Employment during such period, in which case the provisions of Section 6 shall apply, or unless the
Participant’s Retirement or death occurs during such period, in which case the provisions of
Section 7 or Section 8 respectively shall apply.

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10. LEAVES OF ABSENCE and FAMILY LEAVE

	(a)	 	In the event the Participant is on a Paid Leave of Absence or is on Family Leave, Options
shall continue to be and become Vested Options in accordance with the provisions of Section
5(a) and the Participant shall be entitled to exercise or surrender any Vested Options during
the period of such Paid Leave of Absence or Family Leave and thereafter, unless there occurs a
Termination of Employment during such period, in which case the provisions of Section 6 shall
apply, or unless the Participant’s Retirement or death occurs during such period, in which
case the provisions of Section 7 or Section 8 respectively shall apply.
	 
	(b)	 	In the event the Participant is on an Unpaid Leave of Absence:

	 	(i)	 	Options shall continue to be and become Vested Options in accordance with the
provisions of Section 5(a) during the period commencing on the Date of Unpaid Leave of
Absence and ending on the 31st calendar day following the Date of Unpaid
Leave of Absence, unless there occurs a Termination of Employment during such period,
in which case the provisions of Section 6 shall apply, or unless the Participant’s
Retirement or death occurs during such period, in which case the provisions of Section
7 or Section 8 respectively shall apply;
	 
	 	(ii)	 	notwithstanding Section 5(a), Options which do not become Vested Options on or
prior to the 31st calendar day following the Date of Unpaid Leave of Absence
shall not become Vested Options during the balance of the Participant’s Unpaid Leave of
Absence, unless the Participant’s Retirement or death occurs during such period, in
which case the provisions of Section 7 or Section 8 respectively shall apply;
	 
	 	(iii)	 	notwithstanding Section 5(a), Options which do not become Vested Options on or
prior to the 31st calendar day following the Date of Unpaid Leave of Absence
shall become Vested Options on the Participant’s Return to Service Date, but only to
the extent that such Options would have become Vested Options pursuant to Section 5(a)
on or prior to the Return to Service Date if the period of Unpaid Leave of Absence had
not occurred and provided that the Return to Service Date occurs prior to the Expiry
Date;
	 
	 	(iv)	 	in the event that the Participant’s Return to Service Date occurs prior to the
Expiry Date, any Options which did not become Vested Options on or prior to the
31st calendar day following the Date of Unpaid Leave of Absence or pursuant
to Section 10(b)(iii) shall become Vested Options solely in accordance with the
provisions of Section 5(a); and
	 
	 	(v)	 	from the Date of Unpaid Leave of Absence until the Expiry Date, the Participant
shall be entitled to exercise or surrender any Vested Options which become Vested
Options in accordance with the provisions hereof, unless there occurs a Termination of
Employment during such period of Unpaid Leave of Absence, in which case the provisions
of Section 6 shall apply, or unless the Participant’s Retirement or death occurs during
such period, in which case the provisions of Section 7 or Section 8 respectively shall
apply.

11. FORFEITURE AND TERMINATION OF OPTIONS

	(a)	 	Subject to the passing by the Committee or the Board of a resolution pursuant to Sections
12(a) or 12(b), a Performance Option which does not become a Vested Option by a Vesting Date
contemplated in Section 5(a)(ii) 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 Option and, thereafter, the Participant will have no further
right, title or interest in such Performance Option.

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	(b)	 	Subject to the passing by the Committee or the Board of a resolution pursuant to Sections
12(a) or 12(b), a Bonus Option which does not become a Vested Option by a Vesting Date
contemplated in Section 5(a)(iii) 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 Option and, thereafter, the Participant will have no further
right, title or interest in such Bonus Option.
	 
	(c)	 	Unless previously forfeited in accordance with the provisions hereof, upon the occurrence of
a Termination of Employment, Options which have not become Vested Options on or prior to the
Date Employment Ceases shall be forfeited by the Participant and shall terminate on the Date
Employment Ceases and, thereafter, the Participant will have no further right, title or
interest in such Options.
	 
	(d)	 	Upon the occurrence of a Termination of Employment, Vested Options which are not exercised or
surrendered by the end of the Termination Exercise Period shall be forfeited by the
Participant and shall terminate on the last day of the Termination Exercise Period and,
thereafter, the Participant will have no further right, title or interest in such Vested
Options.
	 
	(e)	 	Where the Participant ceases to be an employee of the Corporation or an Affiliated Entity by
reason of the Participant’s 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, Options which have not become Vested Options on or prior to the Date of
Retirement, as applicable, shall be forfeited by the Participant and shall terminate on the
Date of Retirement, as applicable, and, thereafter, the Participant will have no further
right, title or interest in such Options.
	 
	(f)	 	Where the Participant ceases to be an employee of the Corporation or an Affiliated Entity by
reason of the Participant’s Retirement on a date that is prior to the date that the
Participant attains the age of 60 years, Vested Options which are not exercised or surrendered
by the end of the Retirement Exercise Period shall be forfeited by the Participant and shall
terminate on the last day of the Retirement Exercise Period and, thereafter, the Participant
will have no further right, title or interest in such Vested Options.
	 
	(g)	 	Where the Participant ceases to be an employee of the Corporation by reason of the
Participant’s death, Options which have not become Vested Options during the period extending
from the Participant’s date of death to the date that is 12 months from the Participant’s date
of death shall be forfeited by the Participant and shall terminate on the date of death and
thereafter the Participant’s estate will have no further right, title or interest in such
Options.
	 
	(h)	 	On the Expiry Date, all Options which have not been exercised or surrendered or otherwise
terminated pursuant to the provisions hereof shall expire and be of no further force or effect
whatsoever.
	 
	(i)	 	After the occurrence of any of the events in Sections 11(a) — (h), this Agreement shall
terminate and be of no further force or effect whatsoever with respect to those Options which
have been forfeited and terminated or have expired and the Participant shall have no cause of
action nor make any claim against the Corporation or any Affiliated Entity for damages or for
loss of opportunity arising from the forfeiture and termination or expiry of such Options or
the termination of this Agreement insofar as it relates to such Options pursuant to this
Section 11.

12. EARLY EXERCISE AND ACCELERATED VESTING

	(a)	 	Notwithstanding any other provision of this Agreement, prior to the date on which a
Performance Period in respect of a particular Performance Option or Bonus Option ends, the

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	 	 	Committee or the Board may pass a resolution which extends such Performance Period, provided
that no such extension shall be past the Expiry Date.
	 
	(b)	 	Notwithstanding any other provision of this Agreement, the Committee or the Board may, at any
time prior to the Vesting Date of a particular Performance Option or Bonus Option, pass a
resolution which waives, in whole or in part, the requirements of Sections 5(a)(ii) and
5(a)(iii) that there be a specified Achieved Performance Criteria prior to a Performance
Option or Bonus Option becoming a Vested Option.

	(c)	 	Notwithstanding any other provision of this Agreement, but subject to Section 12(d), the
Committee or the Board may pass a resolution which accelerates the vesting of an Option and
which permits the Participant to exercise or surrender in full or in part any unexercised
Option, whether or not the Option has otherwise become a Vested Option, at such time or times
and/or in such manner following the passing of such resolution as is specified in the
resolution, which resolution may be passed for any reason as determined by the Committee or
the Board which, in the sole opinion of the Committee or the Board, warrants altering the
provisions pursuant to which an Option vests or is exercisable or can be surrendered,
including, without limitation, in respect of Bonus Options, upon the occurrence of a Change in
Control, including a Take-Over Bid which would, if successful, result in a Change in Control,
and may provide in such resolution that the provisions of Section 11(d)(ii) shall apply,
mutatis mutandis, in respect of that portion of the Bonus Options in respect of which such
resolution has been passed.

	(d)	 	(i)	 	notwithstanding any other provision of this Agreement but subject to Section 12(d)(ii),
upon the occurrence of a Change in Control, the Participant shall be entitled, on the date of
the Change in Control, to exercise or surrender in full or in part any unexercised Time-Based
Option and Performance Option (irrespective of whether such Time-Based Option or Performance
Option has become a Vested Option in accordance with Section 5(a)(i) or (ii) as applicable)
until the Expiry Date.

	 	(ii)	 	if a “take-over bid” (within the meaning of applicable securities legislation)
made by any person for the voting securities of the Corporation (a “Take-over Bid”)
would, if successful, result in a Change in Control, then:

	 	(A)	 	the Corporation will promptly notify the Participant of the
Take-over Bid and the Participant’s rights under this Section 12(d);
	 
	 	(B)	 	vesting of all Time-Based Options and Performance Options that
have not yet become Vested Options pursuant to Section 5(a)(i) and (ii) at the
time a formal Take-over Bid offer has been made will be accelerated so as to be
and become Vested Options (irrespective of whether such Time-Based Options or
Performance Options have become Vested Options in accordance with Section
5(a)(i) or (ii) as applicable) on the date the formal Take-over Bid offer is
made;
	 
	 	(C)	 	the Participant shall be entitled to exercise, in full or in
part, the Time-Based Options and Performance Options in the manner set out in
this Agreement, with any necessary modifications (or such other manner as may be
prescribed by the Committee or the Board including, but not limited to, a form
of cashless exercise), during the period ending on the earlier of the expiration
of the Take-over Bid and the Expiry Date, for the purpose of tendering the
Shares acquired pursuant to the exercise of the Time-Based Options or
Performance Options to the Take-over Bid;
	 
	 	(D)	 	the Participant shall be entitled to deal with the Time-Based
Options and Performance Options in such other manner (in addition to the
exercise set out in paragraph 12(d)(ii)(C)) as may be prescribed by the
Committee or the Board, in its discretion; and

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	 	(E)	 	if the Shares acquired pursuant to the exercise of the Time-Based
Options and Performance Options are not deposited by the Participant pursuant to
the Take-over Bid or, if deposited, are subsequently withdrawn by the
Participant or not all taken up and paid for by the offeror or if the offeror
fails to take-up and pay for the Shares pursuant to the terms of the Take-over
Bid or if the Take-over Bid fails to close for any other reason, then the
Participant shall promptly return such Shares (or the portion that are not taken
up and paid for) to the Corporation for cancellation. Such Shares shall be
deemed not to have been issued and the related Time-Based Options and
Performance Options shall be deemed not to have been exercised, and the
Corporation shall refund to the Participant, if applicable, the aggregate
Exercise Price for the Time-Based Options and Performance Options. In such
event, Time-Based Options and Performance Options will become Vested Time-Based
Options and Vested Performance Options solely in accordance with Section 5(a)(i)
and (ii) as applicable, and any other action by the Participant permitted in
accordance with Section 12(d)(ii)(D) shall be deemed not to have occurred.

13. EFFECTS OF ALTERATION OF SHARE CAPITAL

In the event of any change in the Shares by reason of any stock dividend, split, recapitalization,
merger, consolidation, combination or exchange of shares or other similar corporate change,
equitable adjustments may be made in the number of Options, the type of shares or securities
subject to the Options, the Exercise Price and the formula for determining the cash payable upon
the surrender of Options pursuant to associated TSARs. The Committee shall determine which
adjustments shall be made in any such event in its sole discretion and its determination shall be
conclusive and binding for all purposes of this Agreement; provided that such adjustments shall not
result in any adverse Canadian or United States federal income tax consequences.

14. METHOD OF EXERCISE OR SURRENDER OF OPTIONS

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

15. OBLIGATIONS OF THE PARTICIPANT

Nothing contained in this Agreement or done pursuant to this Agreement shall oblige the Participant
to purchase and pay for any Shares except those Shares underlying the Options that the Participant
has exercised in the manner provided in this Agreement.

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

16. SUBJECT TO APPLICABLE LAW

The grant of any Option hereunder and the obligation to make any payment (including the delivery of
Shares) in respect of any Option 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.

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17. WITHHOLDINGS

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

The Participant acknowledges that all taxes which may be payable by the Participant as a result of
the granting, exercise, or surrender of the Options are the Participant’s sole responsibility and
that it is the Participant’s duty and responsibility to comply with all provisions of the law in
relation to the reporting of the acquisition or exercise or surrender of the Options and the
trading of any Shares issued pursuant to this Agreement.

18. NO AGREEMENT TO EMPLOY

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

19. NON-QUALIFIED STOCK OPTIONS

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

20. NO REPRESENTATION AS TO PRICE

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

21. NON-ASSIGNABILITY

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

22. SUBJECT TO PLAN

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

23. AMENDMENT AND TERMINATION

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

10

 

24. TIME OF ESSENCE

Time shall be of the essence of this Agreement.

25. NOTICES

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

Cenovus Energy Inc.

421 — 7th Avenue SW

P.O. Box 766

Calgary, Alberta T2P 0M5

Fax: (403) 766-7666

Attention: Vice-President, Governance & Compliance, Organization & Workplace Development

and any notice from the Corporation to the Participant shall be sent to the Participant at the
Participant’s office or residence address last known to the Corporation. Either party may change
the address to which notice may be given by mailing the same, postage prepaid, or delivering the
same to the Corporation or to the Participant, as the case may be, in accordance with the
foregoing. Any such notice if delivered shall be deemed to have been given or made on the date on
which it was delivered or if mailed shall be deemed to have been given or made on the third
business day following the date on which it was mailed. In the event of a general postal
disruption, notice shall be delivered.

The Participant hereby consents to the exchange of information and documents between the
Participant and the Corporation electronically over the Internet or by e-mail (if to the
Participant at the e-mail address most recently provided by the Participant to the Corporation) and
it is hereby agreed and acknowledged that any such information and documents sent or received in
electronic form shall be the equivalent of original written paper documents.

26. GOVERNING LAW

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

27. EXECUTION BY THE CORPORATION

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

28. ACCEPTANCE BY PARTICIPANT

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

11

 

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

CENOVUS ENERGY INC.

Hayward Walls

Executive Vice-President

Organization & Workplace Development

12

 

Schedule “A”

DEFINITIONS

In this Agreement, 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 Affiliated Entities;
	 
	(b)	 	“Agreement” means this Option and Tandem Stock Appreciation Rights Agreement between the
Corporation and the Participant;
	 
	(c)	 	“Anniversary Date” means, in respect of the Options, 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, and
any rules of the Toronto Stock Exchange;
	 
	(e)	 	“Appreciated Value” means, in respect of each TSAR associated with an Option, an amount equal
to the excess of the closing price of a Share on the Toronto Stock Exchange on the last
Trading Day preceding the date of the surrender of the Option, over the Exercise Price;
	 
	(f)	 	“Bonus Options” has the meaning assigned by Section 4(c);
	 
	(g)	 	“Change in Control” means, for purposes of this Agreement, 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 20% 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;
	 
	 	(iii)	 	pursuant to a single election or appointment or a series of elections or
appointments over any period from and after the date of this Agreement (A) those
individuals who at the date of this Agreement 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 date of this Agreement 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 this
Agreement, a Change in Control of the Corporation has occurred.

13

 

Securities beneficially owned or controlled or directed by an employee plan or related trust
sponsored or maintained by the Corporation or any of its Affiliated Entities shall not be
taken into account in determining whether the threshold percentage in Section (h)(i) is
exceeded.

For the purposes of this Section (h):

	 	(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 this Agreement, 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 (h)(ii) and (h)(iv),
the sale, disposition or other divestiture of an Affiliated Entity, in whole or in part,
shall not constitute a Change in Control for the purposes of this Agreement.

	(h)	 	“Close of Business” means the close of trading on the Toronto Stock Exchange on any Trading
Day;
	 
	(i)	 	“Committee” means the Human Resources and Compensation Committee of the Board, or such other
committee of the board, as constituted from time to time, which may be designated by the Board
to, inter alia, interpret, administer and implement the Plan and this Agreement, and any
reference in this Agreement to action by the Committee means action by or under the authority
of the Committee or, if no Committee has been designated, by the Board;
	 
	(j)	 	“Committee Meeting Date” means the date of the meeting of the Committee held to review
matters related to the Options, including the determination of whether and the degree to which
the Performance Criteria for a particular Performance Period have been satisfied and
constitute “Achieved Performance Criteria”, which meeting shall occur at least once annually
and by no later than June 1 of the year immediately following the relevant Performance Period;
	 
	(k)	 	“Corporation Policies” means, at a particular time, the policies and practices of the
Corporation (or, if applicable, the Affiliated Entity which employs the Participant or which
employed the Retired Participant), as published on the Corporation’s internal employee website
or otherwise communicated in writing to the employees (or, where necessary, to a Retired
Participant) of the Corporation and/or its Affiliated Entities;
	 
	(l)	 	“Date Employment Ceases” means:

	 	(i)	 	in the case of voluntary termination of employment initiated by the
Participant, the last date the Participant is, for the purposes of receiving his or her
regular salary, on the payroll of the Corporation or an Affiliated Entity;
	 
	 	(ii)	 	in the case of involuntary termination of the Participant’s employment by the
Corporation or an Affiliated Entity for cause (as determined by the Corporation or the
Affiliated Entity, as applicable), the date written notification of dismissal from
employment is delivered to the Participant;
	 
	 	(iii)	 	in the case of involuntary termination of the Participant’s employment by the
Corporation or an Affiliated Entity other than for cause (as determined by the
Corporation or the Affiliated Entity, as applicable), the date identified in the
written notification of termination of employment delivered to the Participant as the
“Termination Date” or “Departure Date” and, where both dates are so referred to, the
earlier thereof, and,

14

 

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

	 	 	but, for greater certainty, shall not include any notice period which arises or may be
deemed to arise upon the termination of employment of the Participant, and shall not include
the date the Participant ceases to be an employee of the Corporation or an Affiliated Entity
upon the Participant’s Retirement or death, 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;
	 
	(m)	 	“Date of Grant” means the date upon which the Corporation grants the Options to the
Participant, and as evidenced by this Agreement, which term is sometimes referenced as “Issue
Date”;
	 
	(n)	 	“Date of Retirement” means the last day the Participant is, for the purposes of receiving his
or her regular salary, on the payroll of the Corporation or an Affiliated Entity immediately
prior to commencing Retirement;
	 
	(o)	 	“Exercise Price” means the price payable per Share on the exercise by the Participant of an
Option determined on the basis of the Market Value per Share;
	 
	(p)	 	“Expiry Date” means the Close of Business on the fifth Anniversary Date. Should the Expiry
Date fall on a date other than a Trading Day, the Expiry Date shall be the Close of Business
on the last Trading Day prior to that date;
	 
	(q)	 	“Family Leave” means a period during which, pursuant to the Corporation Policies or
Applicable Law, the Participant is considered to be on family leave, and does not provide
employment services to the Corporation or an Affiliated Entity;
	 
	(r)	 	“Long-Term Disability” means any period of time during which the Participant receives, or is
determined to be entitled to receive, disability benefits under the Corporation’s or an
Affiliated Entity’s long-term disability plans;
	 
	(s)	 	“Market Value” means the closing price for a board lot of Shares on the Toronto Stock
Exchange on the last Trading Day immediately preceding the Date of Grant or, if at least one
board lot of Shares did not trade on that day, the closing price for a board lot of Shares on
the Toronto Stock Exchange on the immediately preceding Trading Day on which a board lot of
Shares was traded;
	 
	(t)	 	“Maximum Performance Criteria” means the maximum Performance Criteria that has been
determined by the Committee as being applicable to the Options granted under this Agreement,
the achievement of which in a particular Performance Period shall entitle all of the
Performance Options and Bonus Options granted to a Participant which are eligible to become
Vested Options in respect of such Performance Period to become Vested Options, subject to the
provisions of this Agreement, and which is set out in Schedule “B” hereto and 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
Affiliated Entities;
	 
	(u)	 	“Median Performance Criteria” means that median Performance Criteria that has been determined
by the Committee as being applicable to the Options granted under this Agreement, the
achievement of which in a particular Performance Period shall entitle all of the Performance

15

 

	 	 	Options granted to a Participant which are eligible to become Vested Options in respect of
such Performance Period to become Vested Options, and the over-achievement of which shall
entitle at least a portion of the Bonus Options granted to a Participant which are eligible
to become Vested Options in respect of such Performance Period to become Vested Options, all
subject to the provisions of this Agreement, and which is set out in Schedule “B” hereto and
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 Affiliated Entities;
	 
	(v)	 	“Minimum Performance Criteria” means that minimum Performance Criteria that has been
determined by the Committee as being applicable to the Options granted under this Agreement,
the over-achievement of which in a particular Performance Period shall entitle at least a
portion of the Performance Options granted to a Participant which are eligible to become
Vested Options in respect of such Performance Period to become Vested Options, subject to the
provisions of this Agreement, and which is set out in Schedule “B” hereto and 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
Affiliated Entities;
	 
	(w)	 	“Paid Leave of Absence” means a period during which, pursuant to the Corporation Policies or
Applicable Law, the Participant is considered to be on a leave of absence and continues to
receive his or her normal salary, but does not provide employment services to the Corporation
or an Affiliated Entity;
	 
	(x)	 	“Performance Criteria” means, in respect of a Performance Option or a Bonus Option, that
performance criteria that has been determined by the Committee as being applicable to the
Options granted under this Agreement, and which is set out in Schedule “B” hereto and 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
Affiliated Entities;
	 
	(y)	 	“Performance Options” has the meaning assigned by Section 4(b);
	 
	(z)	 	“Performance Period” means, in respect of a Performance Option or a Bonus Option, the period
in which the Performance Criteria must be satisfied in order for such Option to become a
Vested Option and, except as otherwise provided and subject to Section 12(a):

	 	(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;

	(aa)	 	“Related Corporation” means a corporation that is related, within the meaning of the Income
Tax Act (Canada), to the Corporation;
	 
	(bb)	 	“Retired Participant” means a Participant who ceases to be an employee of the Corporation or
an Affiliated Entity by reason of his or her Retirement;
	 
	(cc)	 	“Retirement” means the early or normal retirement of the Participant from employment with the
Corporation or an Affiliated Entity in accordance with the Corporation Policies;
	 
	(dd)	 	“Retirement Exercise Period” means the period of time extending from the date of the
Participant’s Date of Retirement, as applicable, to the earlier of: (i) the date that is six
months

16

 

following the date of the Participant’s Date of Retirement, as applicable; and (ii) the
Expiry Date. Should the Retirement Exercise Period terminate on a date other than a Trading
Day, the Retirement Exercise Period shall terminate on the Close of Business on the last
Trading Day prior to that date;

	(ee)	 	“Return to Service Date” means the date, following an Unpaid Leave of Absence, that the
Participant recommences the provision of employment services to the Corporation or an
Affiliated Entity, in full or in part;
	 
	(ff)	 	“Share” means a common share in the capital of the Corporation as is traded on the Toronto
Stock Exchange;
	 
	(gg)	 	“Short-Term Disability” means any period of time during which the Participant receives
disability benefits under the Corporation’s or an Affiliated Entity’s short-term disability
plans;
	 
	(hh)	 	“Take-over Bid” has the meaning assigned by Section 12(d)(ii);
	 
	(ii)	 	“Termination Exercise Period” means the period of time extending from the Date Employment
Ceases to the earlier of: (i) the Close of Business on the 60th Trading Day after
the Date Employment Ceases; and (ii) the Expiry Date;
	 
	(jj)	 	“Termination of Employment” means an event by which the Participant ceases to be an employee
of the Corporation or an Affiliated Entity but, for greater certainty, shall not include an
event whereby the Participant ceases to be an employee of the Corporation or an Affiliated
Entity upon the Participant’s Retirement or death or where the Participant commences
Short-Term Disability, Long-Term Disability, a Paid Leave of Absence, an Unpaid Leave of
Absence, or Family Leave;
	 
	(kk)	 	“Time-Based Options” has the meaning assigned by Section 4(a);
	 
	(ll)	 	“Trading Day” means a day on which the Toronto Stock Exchange is open for trading;
	 
	(mm)	 	“TSAR” means a tandem stock appreciation right which is associated with an Option and which
entitles the Participant to surrender a Vested Option in accordance with Section 5(d), subject
to the terms and conditions hereof;
	 
	(nn)	 	“Unpaid Leave of Absence” means a period of time during which, pursuant to the Corporation
Policies or Applicable Law, the Participant is considered to be on a leave of absence and does
not continue to receive his or her salary or provide employment services to the Corporation or
an Affiliated Entity which, for the purposes of this Agreement, shall be deemed to commence on
the “Date of Unpaid Leave of Absence”, being the first day of the Participant’s Unpaid Leave
of Absence, as communicated in writing to the Participant by the Corporation or an Affiliated
Entity in accordance with the Corporation Policies;
	 
	(oo)	 	“Vested Option” means an Option which has vested and can be exercised by the Participant to
purchase a Share or, alternatively, can be surrendered by the Participant in accordance with
Section 5 (d), subject to the terms and conditions hereof; and
	 
	(pp)	 	“Vesting Date” means the date on which an Option becomes a Vested Option.

17

 

Schedule “B”

The Options granted to the Participant hereunder will become Vested Options only upon satisfaction
of the vesting conditions in Section 5 of the Agreement. For these purposes, the following shall
apply to the terms specified in Section 5 of the Agreement:

[FOLLOWING IS TO BE DETERMINED]

Performance Criteria is the Corporation’s • during the applicable Performance Period.

Minimum Performance Criteria for each of the Performance Periods of 2010, 2011 and 2012 equals a •
of •.

Median Performance Criteria for each of the Performance Periods of 2010, 2011 and 2012 equals a •
of •.

Maximum Performance Criteria for each of the Performance Periods of 2010, 2011 and 2012 equals a •
of •.

18exv10w3

Exhibit 10.3

CENOVUS ENERGY INC.

REPLACEMENT STOCK OPTION AGREEMENT

Participant Name:

Grant Name:

Previous Grant:

	 	•	 	______ Options with connected SARs granted pursuant to an Option and Stock
Appreciation Rights Agreement between EnCana and the Participant dated in 2005
	 
	 	•	 	______ Options with connected SARs granted pursuant to an Option and Stock
Appreciation Rights Agreement between EnCana and the Participant dated in 2006

(collectively, the “Original Options”)

THIS OPTION AND STOCK APPRECIATION RIGHTS AGREEMENT is made between Cenovus Energy Inc. (the
“Corporation”) and the Participant listed above;

WHEREAS EnCana Corporation (“EnCana”) had, prior to the 2009 Arrangement (as defined below),
granted the Original Options to the Participant;

AND WHEREAS each of the Original Options exchanged, pursuant to the 2009 Arrangement, in part, for
the grant by the Corporation of a Cenovus Replacement Stock Option (a “Replacement Option”) and in
part for the grant by EnCana of an EnCana Replacement Stock Option (as defined below), such that,
for each common share in the capital of EnCana that the Participant would have been entitled to
acquire pursuant to an Original Option, the Participant is instead entitled to acquire one share
pursuant to the corresponding Replacement Options and one common share of EnCana pursuant to the
corresponding EnCana Replacement Option;

AND WHEREAS the Grant Price (as defined below) of each Replacement Option was determined in
accordance with the 2009 Arrangement and the other terms and conditions of such Replacement Option
are identical to the terms and conditions of the respective exchanged Original Option;

AND WHEREAS the Corporation has established an Employee Stock Option Plan (the “Plan”) for officers
and employees of the Corporation and its affiliated entities, including, but not limited to, its
subsidiary companies and/or partnerships (the “Affiliated Entities” or, individually, an
“Affiliated Entity”);

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

 

 

-2-

1. DEFINITIONS

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

	a.	 	“2009 Arrangement” means the arrangement under the Canada Business Corporations Act described
in the information circular relating to an arrangement involving EnCana, 7050372 Canada Inc.
and the Corporation dated October 20, 2009 which arrangement became effective on the Effective
Date and resulted in, inter alia, the existence of the Corporation as an independent
publicly-traded entity;
	 
	b.	 	“Anniversary Date” means, in respect of the Replacement Option, each anniversary of the
Original Date of Grant;
	 
	c.	 	“Appreciated Value” means, in respect of each SAR, an amount equal to
the excess of the closing price of the Shares on the Toronto Stock
Exchange on the last trading day preceding the date of exercise of the
SAR, over the Exercise Price;
	 
	d.	 	“Change in Control” for purposes of this Agreement, a “Change in
Control” of the Corporation shall be deemed to have occurred if:

	 	i.	 	any individual, partnership, firm, corporation, association, trust,
unincorporated organization or other entity, or any persons acting jointly or in
concert with the foregoing, is or becomes the beneficial owner, directly or
indirectly, of securities of the Corporation representing more than 20% 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;
	 
	 	iiii.	 	pursuant to a single election or appointment or a series of elections or
appointments over any period from and after the date of this Agreement (A) those
individuals who at the date of the Agreement 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 date of this Agreement or whose appointment
or nomination for election was previously so approved, cease for any reason to
constitute a majority of the Board; or

 

-3-

	 	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 this
Agreement, 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 Affiliated Entities shall
not be taken into account in determining whether the threshold percentage in this Clause
1(c)(i) above is exceeded.

For the purposes of this Clause 1(c):

	 	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 this Agreement, 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 Clauses 1(c)(ii) and
1(c)(iv), the sale, disposition or other divestiture of an Affiliated Entity, in whole or
in part, shall not constitute a Change in Control for the purposes of this Agreement.

	e.	 	“Committee” means such Committee of the Board as may be designated by
the Board from time to time;
	 
	f.	 	“Date Employment Ceases” means:

	 	i.	 	in the case of voluntary termination of employment initiated by the
Participant, the last date the Participant is on the payroll of the Corporation or an
Affiliated Entity;
	 
	 	ii.	 	in the case of involuntary termination of the Participant’s employment by the
Corporation or an Affiliated Entity for cause, 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 Affiliated Entity other than for cause, the date identified in the
written notification of termination of employment delivered to the Participant as the
“Termination Date” or “Departure Date” 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 Affiliated Entity and for
any reason including, without limitation, by reason of sale, disposition or other
divestiture thereof, in whole or in part, such employer ceases to be an Affiliated
Entity of the Corporation, the effective date (in the case of a sale,

 

-4-

	 	 	 	disposition or other divestiture, the closing date of such transaction or series of
transactions, as determined by the Corporation) upon which the Participant’s employer
ceases to be an Affiliated Entity;

	 	 	but does not include the date the Participant ceases to be an officer or employee of the
Corporation or an Affiliated Entity upon death, normal retirement or early retirement (as
defined in the Corporation’s Retirement Pension Plan), commences unpaid leave of absence or
commences Disability;
	 
	 	 	and provided that, where the Participant is an employee of an entity within the EnCana
Group immediately after the Effective Date, the reference to “the Corporation” and
“Affiliated Entity” in the foregoing shall be read as a reference to “EnCana” and an
“Affiliated Entity of EnCana”, respectively.
	 
	 	 	Notwithstanding any other provision in this Agreement, there shall be no “Date Employment
Ceases” where the Participant’s employment with the EnCana Group is involuntarily
terminated (other than for cause) within 12 months of a Change in Control of EnCana;
	 
	g.	 	“Disability” and “Date of Disability” shall be deemed to occur and
shall mean the first day immediately following the last day the
Participant receives disability benefits under the Corporation’s
short-term disability plans and does not return to work with the
Corporation or an Affiliated Entity;
	 
	h.	 	“Effective Date” means November 30, 2009;
	 
	i.	 	“EnCana” means EnCana Corporation;
	 
	j.	 	“EnCana Group” means EnCana and any Affiliated Entity of EnCana;
	 
	k.	 	“EnCana Replacement Stock Option” means a stock option granted by
EnCana to the Participant pursuant to the 2009 Arrangement in partial
consideration for an Original Option;
	 
	l.	 	“Exercise Price” means the price payable per Share on the exercise by
the Participant of the Replacement Option determined on the basis of
the Market Value per Share. (For the purposes of this Agreement, the
“Grant Price” shall constitute and have the same meaning as the
Exercise Price);
	 
	m.	 	“Expiry Date” means the close of business in Calgary, Alberta on the
fifth Anniversary Date in respect of the Replacement Option. Should
this date fall on a holiday or weekend, the Expiry Date shall be the
close of business on the last business day prior to that holiday or
weekend day;
	 
	n.	 	“Market Value” means the closing price for Shares on the Toronto Stock
Exchange on the last trading day immediately prior to the Original
Date of Grant or, if one Share did not trade on that day, the closing
price for Shares on the Toronto Stock Exchange on the immediately
preceding day on which a Share was traded;

 

-5-

	o.	 	“Option Exchange Time” means the time on the Effective Date at which
the Replacement Options were granted to the Participant pursuant to
the 2009 Arrangement;
	 
	p.	 	“Optioned Shares” means in respect of the Option, the number of Shares
which the Participant has been granted an option to purchase
hereunder. (For the purposes of this Agreement, the “Total Shares”
referred to above shall constitute and have the same meaning as the
Optioned Shares);
	 
	q.	 	“Original Date of Grant” means the date upon which EnCana granted the
Original Options to the Participant and as evidenced by the Original
Grant Agreement, which term is sometimes referenced as “Original Issue
Date”;
	 
	r.	 	“Share” or “Shares” means one or more common shares in the capital of
the Corporation as are traded on the Toronto Stock Exchange;
	 
	s.	 	“SAR” or “SARs” shall mean stock appreciation rights which entitle the
Participant to the rights provided in Clause 4 below, subject to the
terms and conditions herein.

2. GRANT OF OPTION AND STOCK APPRECIATION RIGHTS

In accordance with the 2009 Arrangement, and subject to the terms and conditions herein, the
Corporation hereby confirms the grant to the Participant a Replacement Option to purchase the
Optioned Shares effective at the Option Exchange Time. The Replacement Option shall have a SAR
connected with it in respect of each Optioned Share.

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

3. EVIDENCE OF GRANT

This Agreement shall evidence the grant by the Corporation to the Participant of the Replacement
Option effective at the Option Exchange Time.

4. RIGHTS OF EXERCISE OF REPLACEMENT OPTION OR SAR

In respect of the Option, subject to Clauses 5, 6 and 7 hereof:

	a.	 	The Participant shall be entitled to exercise such Replacement Option as follows:

	 	i.	 	30 percent of the Optioned Shares at any time or from time to time on or
following the first Anniversary Date;
	 
	 	ii.	 	an additional 30 percent of the Optioned Shares at any time or from time
to time on or following the second Anniversary Date;

 

-6-

	 	iii.	 	an additional 40 percent of the Optioned Shares at any time or from time
to time on or following the third Anniversary Date;

	 	 	and ending at the close of business on the Expiry Date or such earlier termination date of
the Replacement Option as provided herein.
	 
	b.	 	In respect of the Replacement Option, the Participant is eligible to exercise his or her SAR
or SARs with respect to all or any number of the Optioned Shares on the same basis as set
forth in paragraph 4(a). The exercise of a SAR or SARs shall require the Participant to
surrender to the Corporation the Participant’s Replacement Option on the applicable number of
the unexercised Optioned Shares in exchange for which the Participant shall receive cash or
Shares (at the election of the Corporation) equal to the Appreciated Value multiplied by the
number of Optioned Shares surrendered, less required applicable statutory withholdings.
	 
	c.	 	At the close of business on the Expiry Date, the Replacement Option shall expire and be of no
further force or effect whatsoever as to such of the Optioned Shares and attendant SARs in
respect of which the Replacement Option has not previously been exercised.

5. TERMINATION OF EMPLOYMENT

From the Date Employment Ceases until the earlier of: (i) the close of the 60th trading day on the
Toronto Stock Exchange after the Date Employment Ceases; and (ii) the Expiry Date, the Participant
shall be entitled to exercise his or her Replacement Option only to the extent of the previously
unexercised Optioned Shares or attendant SARs which the Participant is entitled to exercise
pursuant to Clause 4 above as of the Date Employment Ceases. Thereafter, the Replacement Option and
this Agreement shall terminate and be of no further force or effect whatsoever, and the Participant
shall have no cause of action nor make any claim against the Corporation for damages or for loss of
opportunity arising from termination of this Agreement pursuant to this Clause 5.

6. RETIREMENT, DISABILITY OR DEATH, OF PARTICIPANT

Where the Participant is an employee of the Corporation or an Affiliated Entity or within the
EnCana Group, as applicable, on the Effecitve Date, then in the event of the Participant’s normal
or early retirement (as defined in the Corporation’s Retirement Pension Plan), Disability or death
from the Corporation or an Affiliated Entity or within the EnCana Group prior to the Expiry Date
but after the Effective Date, the Replacement Option shall remain exercisable as follows:

	a.	 	If the Participant’s normal or early retirement (as defined in the Corporation’s Retirement
Pension Plan), Disability or death occurs before the Participant attains age 60, the
previously unexercised Optioned Shares or attendant SARs in respect of the Replacement Option
which the Participant is entitled to exercise pursuant to Clause 4 above as at the date of
retirement, Disability or death shall remain exercisable until the earlier of: (i) six (6)
months from the date of retirement, Disability or death; or (ii) the Expiry Date;

 

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	b.	 	If the Participant’s normal or early retirement (as defined in the Corporation’s Retirement
Pension Plan), Disability or death occurs on or after the Participant attains age 60 but
before the Participant attains age 65, the previously unexercised Optioned Shares or attendant
SARs in respect of the Replacement Option shall be exercisable and continue to become
exercisable in accordance with Clause 4 above until the earlier of: (i) five (5) years from
the date of retirement, Disability or death; or (ii) the Expiry Date; or
	 
	c.	 	If the Participant’s normal or early retirement (as defined in the Corporation’s Retirement
Pension Plan) Disability or death occurs on or after the Participant attains age 65, the
Participant shall become and remain entitled to exercise all of the previously unexercised
Optioned Shares or attendant SARs in respect of the Replacement Option (irrespective of the
exercise schedule referred to in Clause 4) until the earlier of: (i) five (5) years from the
date of retirement, Disability or death; or (ii) the Expiry Date.

In the case of Disability, if the Participant returns to work to the Corporation or an Affiliated
Entity or within the EnCana Group, whichever was the Participant’s employer prior to the
Disability, either during or following the expiry of the exercise period referred to in paragraphs
6(a) or 6(b) above but before the Expiry Date, the previously unexercised Optioned Shares or
attendant SARs in respect of the Replacement Option shall become available for exercise in
accordance with Clause 4 above on the first day the Participant returns to work, to the extent that
such Optioned Shares or attendant SARs are exercisable or would have become exercisable during the
period of Disability pursuant to Clause 4 above, and shall remain exercisable until the earlier of
the Expiry Date or such earlier termination date as provided herein.

If the Expiry Date occurred or occurs during the period of Disability, the Replacement Option shall
expire and be of no further force or effect whatsoever.

7. LEAVE OF ABSENCE

	a.	 	In the event the Participant is granted and takes a paid leave of absence or is on a family
leave of absence, as defined by the Corporation’s policies or practices as in effect at the
time, the previously unexercised Optioned Shares or attendant SARs in respect of the
Replacement Option shall continue to be and become available for exercise pursuant to Clause 4
above during the term of such paid leave of absence until the Expiry Date, unless employment
terminates, in which case the provisions of Clause 5 above shall apply.
	 
	b.	 	In the event the Participant is granted and takes an unpaid leave of absence, as defined by
the Corporation’s policies or practices as in effect at that time, the previously unexercised
Optioned Shares or attendant SARs in respect of the Replacement Option which the Participant
is entitled to exercise pursuant to Clause 4 above shall not be or become available for
exercise pursuant to Clause 4 above during the unpaid leave of absence.
	 
	 	 	If the Participant returns to employment with the Corporation following the unpaid leave of
absence but before the Expiry Date, the previously unexercised Optioned Shares or attendant
SARs in respect of the Replacement Option shall become available for exercise in accordance
with Clause 4 above on the first day

 

-8-

	 	 	the Participant returns to work, to the extent such Optioned Shares or attendant SARs are
exercisable or would have become exercisable during the unpaid leave of absence, and shall
remain exercisable until the earlier of the Expiry Date or such earlier termination date as
provided herein.

If the Participant does not return to employment with the Corporation following the unpaid
leave of absence, the Optioned Shares and attendant SARs in respect of the Replacement
Option which the Participant would have been entitled to exercise pursuant to Clause 4
above as of the Participant’s last day of active employment prior to commencing the unpaid
leave of absence shall be exercisable in accordance with Clause 5 above as of the Date
Employment Ceases and thereafter shall expire and be of no further force or effect
whatsoever. If the Expiry Date occurred or occurs during the unpaid leave of absence, the
Option shall expire and be of no further force or effect whatsoever.

8. EARLY EXERCISE

	a.	 	Notwithstanding any other provision of this Agreement, but subject to the remaining
provisions of this Clause, the Committee or the Board may pass a resolution which entitles the
Participant to exercise and/or surrender in full or in part any unexercised Replacement
Option, whether or not the Participant has become entitled to exercise such Replacement Option
or the Optioned Shares or attendant SARS in respect thereof pursuant to Clause 4 above, 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 or the Board which, in the sole opinion of the Committee or the Board, warrants
altering the provisions pursuant to which an Option is exercisable.
	 
	b.	 	(i) Notwithstanding any other clause of this Agreement but subject to paragraph 8(b)(ii)
below, upon the occurrence of a Change in Control, the Participant shall be entitled, on the
date of the Change in Control, to exercise in full or in part any unexercised Option
(irrespective of the exercise schedule referred to in Clause 4) until the Expiry Date.
	 
		 	(ii) If a “take-over bid” (within the meaning of applicable securities legislation) made by
any person for the voting securities of the Corporation (a “Take-over Bid”) would, if
successful, result in a Change in Control, then:

	 	A.	 	the Corporation will promptly notify the Participant of the Take-over Bid and
the Participant’s rights under this Clause;
	 
	 	B.	 	all Optioned Shares or attendant SARs in respect of the Option that are not
yet exercisable pursuant to Clause 4 above at the time a formal Take-over Bid offer
has been made will be accelerated so as to be and become fully available for exercise
(irrespective of the exercise schedule referred to in Clause 4) on the date the formal
Take-over Bid offer is made;
	 
	 	C.	 	the Participant shall be entitled to exercise in full or in part the
Replacement Option in the manner set out in this Agreement, with any
necessary modifications (or such other manner as may be prescribed by the Committee
or the Board including, but not limited to, a form of

 

-9-

	 	 	 	cashless exercise), during the period ending on the earlier of the expiration of
the Take-over Bid and the Expiry Date, for the purpose of tendering the Optioned
Shares to the Take-over Bid;
	 
	 	D.	 	the Participant shall be entitled to deal with the Replacement Option in such
other manner (in addition to the exercise set out in paragraph 8(b)(ii)(C) above) as
may be prescribed by the Committee or the Board, in its discretion; and
	 
	 	E.	 	if the Optioned Shares are not deposited by the Participant pursuant to the
Take-over Bid or, if deposited, are subsequently withdrawn by the Participant or not
all taken up and paid for by the offeror or if the offeror fails to take-up and pay
for the Shares pursuant to the terms of the Take-over Bid or if the Take-over Bid
fails to close for any other reason, then the Participant shall promptly return the
Optioned Shares (or the portion that are not taken up and paid for) to the Corporation
for cancellation. Such Optioned Shares shall be deemed not to have been exercised and
not to have been issued, and the Corporation shall refund to the Participant if
applicable, the aggregate Exercise Price for the Optioned Shares. In such event,
Options will remain exercisable in accordance with Clause 4 above, and any other
action by the Participant permitted in accordance with Clause 8(b)(ii)(D) above, shall
be deemed not to have occurred.

9. EFFECTS OF ALTERATION OF SHARE CAPITAL

In the event of any change in the Shares by reason of a stock dividend, split, recapitalization,
merger, consolidation, combination or exchange of shares or other similar corporate change, an
equitable adjustment may be made in the number of Optioned Shares or attendant SARs, the Exercise
Price and the formula for determining the cash payable upon the exercise of SARs. The Committee
shall determine what adjustment shall be made in any such event in its sole discretion and their
determination shall be conclusive and binding for all purposes of this Agreement; provided that the
following shall apply to the events described:

	a.	 	If the Shares of the Corporation are subdivided into a greater number of Shares, or
consolidated into a lesser number of Shares, or changed into a different number of Shares
subsequent to the Original Date of Grant, the number of Optioned Shares and their attendant
SARs shall be deemed to be changed in like manner so that the Participant shall be deemed to
hold the number of Optioned Shares and their attendant SARs that the Participant would have
held were the Participant the holder of record of the Optioned Shares as of the date of such
subdivision, consolidation or change.
	 
	b.	 	If a stock dividend is paid on the Shares subsequent to the Original Date of Grant, there
shall be added to the Optioned Shares and their attendant SARs the number of Shares which
would have been issuable to the Participant had the
Participant been the holder of record of the Optioned Shares as of the date on which the
stock dividend was paid.
	 
	c.	 	If there is any capital reorganization or reclassification of the share capital of the
Corporation, or any consolidation or merger or amalgamation of the Corporation 

 

-10-

	 	 	with any other
corporation or corporations, subsequent to the Original Date of Grant, adequate provision
shall be made by the Corporation so that there shall be substituted for the Optioned Shares
and their attendant SARs, the shares or securities which would have been issuable to the
Participant had the Participant been the holder of record of the Optioned Shares as of the
date such event occurs.

10. METHOD OF EXERCISE OF REPLACEMENT OPTION

The Replacement Option may be exercised by the Participant or the Participant’s legal personal
representative in a manner prescribed by the Corporation from time to time and as the Corporation
advises the Participant from time to time.

11. OBLIGATIONS OF THE PARTICIPANT

Nothing contained in this Agreement or done pursuant to this Agreement shall oblige the Participant
to purchase and pay for any Optioned Shares except those Optioned Shares that the Participant has
exercised in the manner provided in this Agreement. The Participant acknowledges that all taxes
which may be payable by the Participant as a result of the granting or exercise of the Replacement
Option thereof are the Participant’s sole responsibility and that it is the Participant’s duty and
responsibility to comply with all provisions of the law in relation to the reporting of the
acquisition or exercise of the Replacement Option and the trading of any Shares issued pursuant to
this Agreement.

12. NO AGREEMENT TO EMPLOY

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

13. NON-QUALIFIED STOCK OPTIONS

The Replacement Option granted to the Participant hereunder is a non-qualified stock option for
United States tax purposes.

14. NO REPRESENTATION AS TO PRICE

The Corporation makes no representation nor gives any warranty as to the price of the Shares and
shall not be held liable for any fluctuation in the price of the Shares either before or after the
exercise of any right conferred under the 2009 Arrangement and this Agreement.

15. NON-ASSIGNABILITY

The Replacement Option and the rights conferred hereby are not assignable, negotiable or otherwise
transferable by the Participant other than by will or the laws of descent and distribution. The
Replacement Option is exercisable only during the Participant’s lifetime

 

-11-

and only by the Participant, except in the event of the Participant’s death or Disability, in which case the
Replacement Option may be exercised by the Participant’s legal guardian or legal representative as
provided herein.

16. SUBJECT TO PLAN

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

17. TIME OF ESSENCE

Time shall be of the essence of this Agreement.

18. NOTICES

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

Cenovus Energy Inc.

421 7th Avenue SW

P.O. Box 766

Calgary, Alberta T2P 0M5

Attention: Corporate Human Resources

and any notice from the Corporation to the Participant shall be sent to the Participant at the
Participant’s office or residence address last known to the Corporation. Either party may change
the address to which notice may be given by mailing the same, postage prepaid, or delivering the
same to the Corporation or to the Participant, as the case may be, in accordance with the
foregoing. Any such notice if delivered shall be deemed to have been given or made on the date on
which it was delivered or if mailed shall be deemed to have been given or made on the third
business day following the date on which it was mailed. In the event of a general postal
disruption, notice shall be delivered.

19. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws in force in the
Province of Alberta and the federal laws of Canada as applicable herein.

20. EXECUTION BY THE CORPORATION

This Agreement may be executed by application of the facsimile or authorized electronic signature
of the Executive Vice-President, Organization & Workplace Development of the Corporation and the
facsimile or authorized electronic signature of the Executive Vice-President, Organization &
Workplace Development shall be as valid and effective as if such officer signed this Agreement in
person.

 

-12-

21. PARTICIPANT INFORMATION

	(a)	 	The Participant hereby agrees to provide the Corporation with all information (including
personal information) the Committee requires in order to administer the Replacement Options
evidenced by this Agreement, the employment relationship as a whole and such matters arising
therefrom (the “Participant Information”).
	 
	(b)	 	The Participant agrees and acknowledges that the Corporation may from time to time transfer
or provide access to Participant Information to EnCana for the purposes of enabling EnCana to
administer any EnCana Replacement Stock Options granted to such Participant.
	 
	(c)	 	Where the Participant is an employee of an entity within the EnCana Group immediately after
the Effective Date, the Participant agrees and acknowledges that the Corporation may from time
to time transfer or provide access to Participant Information to EnCana for the purpose of
obtaining reimbursement from EnCana, where agreed between the Corporation and EnCana.
	 
	(d)	 	Where the Participant is an employee of an entity within the EnCana Group immediately after
the Effective Date, the Participant agrees and acknowledges that the Corporation may from time
to time access Participant Information and other personal information provided by the
Participant to EnCana from EnCana for the purposes of enabling the Corporation to administer
the Replacement Options.
	 
	(e)	 	The Participant agrees and acknowledges that the Corporation may from time to time transfer or
provide access to Participant Information to a third party service provider for purposes of the
administration of the Replacement Options provided that such service provider will be provided with
such information for the sole purpose of providing services to the Corporation in connection with
the operation and administration of the Replacement Options and the Plan. The Corporation may also
transfer and provide access to Participant Information to its Affiliated Entities for purposes of
preparing financial statements or other necessary reports and facilitating payment or reimbursement
of expenses.

22. ACCEPTANCE BY PARTICIPANT

The Participant shall confirm acceptance of the terms and conditions of this Agreement by
electronically selecting and clicking on the button beside the words “I Accept” from the options
provided below. By indicating such acceptance, the Participant agrees to be legally bound by the
terms and conditions of this Agreement, and hereby agrees that such acceptance shall be as valid
and effective as if the Participant signed this Agreement in person. In the event the Participant
does not agree with or accept the terms and conditions of this Agreement, or an error exists in the
Replacement Option
information provided at the outset of this Agreement, the Participant must electronically select
and click on the button beside the words “I Do Not Accept” from the options provided below. This
Agreement and the Replacement Option granted hereunder is not effective, and the Participant shall
have no rights whatsoever hereunder, until the Participant has accepted this Agreement in
accordance with the provisions hereof.

 

-13-

IN WITNESS WHEREOF this Agreement has been executed by the parties as of the date first above
written.

CENOVUS ENERGY INC.

“Hayward Walls”

(original signed copy on file with Cenovus)

Hayward J. Walls

Executive Vice-President

Organization & Workplace Development

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