Form of U.S. Executive PSU Grant Agreement

Exhibit 10.12

PERFORMANCE SHARE UNIT PLAN

FOR EMPLOYEES OF ENCANA CORPORATION

[U.S. EXECUTIVE] 20● PSU GRANT AGREEMENT

This Grant Agreement including Schedules “A” and “B” hereto (collectively, this “Agreement”) is between you, an eligible employee of the Corporation or an Affiliate (“Participant” or “You”) and Encana Corporation or an Affiliate thereof (the “Corporation”).

WHEREAS the Corporation has adopted a Performance Share Unit Plan for Employees of Encana Corporation (the “Plan”);

AND WHEREAS subject to the terms and conditions of the Plan and this Agreement, the Corporation has authorized the granting to You of certain Performance Share Units (“PSUs”) in such number as set out above and as further described in this Agreement;

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

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

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

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

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

ENCANA CORPORATION

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Schedule “A”

Any PSUs granted to You on the Grant Date shall only become Vested PSUs upon satisfaction of the terms and conditions set out in the Plan and this Agreement. Without limiting the generality of the foregoing, any Vested PSUs will only become eligible for payment on the Vesting Date (defined in paragraph 3 below), subject to the terms and conditions set out in the Plan and this Agreement (including, without limitation, paragraph 9 below).

The number of PSUs that may become Vested PSUs (and the Eligible PSU Amount payable in connection therewith) on the Vesting Date shall be determined by the Committee and the Board following the Performance Period, in accordance with the terms of the Plan and this Agreement.

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

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

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

In respect of RTSR, the Corporation’s performance will be compared to the PSU Performance Peer Group (defined in paragraph 5 below), as measured over the Performance Period.

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

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In respect of the PSU Performance Measures, the Corporation’s performance shall be assessed by the Committee and the Board, as applicable, at the conclusion of the Performance Period.

For purposes of this Agreement, RTSR and the PSU Performance Measures shall be collectively referred to as the “Performance Criteria”.

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

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

Unless otherwise determined by the Committee or the Board, as applicable, the Performance Criteria shall be calculated by the Corporation prior to the Vesting Date, following the end of the Performance Period.

At the Committee Meeting Date immediately following the Performance Period, the Committee shall evaluate the Corporation’s achievement of the Performance Criteria during the Performance Period.

In respect of RTSR, such assessment shall be relative to the corresponding performance of the PSU Performance Peer Group during the same period. In respect of the PSU Performance Criteria, such assessment shall be relative to criteria as may be determined by the Board or the Committee, as

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

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

20● PSU Grant: Performance/Payout Matrix:

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

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

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

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

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

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

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

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

Following approval of the Achieved Performance Criteria, the Eligible PSU Amount in respect of each Participant shall be calculated by the Corporation in accordance with Section 7.4 of the Plan. The Eligible PSU Amount shall be equal to the number of Eligible PSUs relating to the Performance Period, including any Dividend Equivalent PSUs in respect of same, rounded up to the nearest whole number of Eligible PSUs.

Once determined, Eligible PSUs shall be converted to a cash equivalent (based on the Participant’s payroll currency) by multiplying the number of Eligible PSUs by the volume weighted average (rounded to two decimal places) trading price of a Share on the Participant’s applicable Stock Exchange over the five (5) Trading Days immediately following the Committee Meeting Date, held to determine the vesting eligibility of PSUs granted hereunder, subject to any Blackout Period (the “Eligible PSU Amount”).

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

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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 22^nd 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 Board shall be entitled:

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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.

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