Important Enhancements to the Husky Employee Savings Plan

Your Health. Your Wealth. Prepare today for your tomorrow

• Savings Plan Philosophy • What's stays the same / What changes?• Making elections & Re Allocations• The Tax-free Savings Account (TFSA) & Share

Purchase Plan • Plan member responsibilities• Fees• Actions required & Choosing your funds• Tools and Services

Agenda

The Husky Energy Savings Plan Philosophy

• The objective of Husky savings plan is to assist employees in saving by supplementing any additional savings and retirement income they may receive from other sources:• This may include government programs, (for

example CPP & OAS)

• It is important to understand that you may require additional savings and investments to reach your retirement objectives.

What stays the same?

What stays the same?

• Husky will continue providing 5% of your base earnings to the savings plan

• No employee match is required• You can still direct the 5% or a portion thereof to the

Group RRSP• Low investment management fees.

What changes?

• Deposits are made “per pay” directly into the savings plan rather than an annual lump sum payment,

• Flexibility to make additional voluntary employee contributions,

• The Savings Plan entitlement section of the pay advice will be removed. The current period and year to date contributions can be viewed in the Employer Contribution and Deduction section of your pay advice

What changes?

• Greater choice of investment vehicles, including;• Non-registered funds (same as those in the retirement

plans)

• A TFSA added to the plan

• A Husky Share Purchase Plan has been added to the plan

What changes?

You can now direct Husky’s contribution as follows:

What are the changes?

RRSP/Spousal RRSP

(pre tax)

Non Registered(after tax)

Husky Share Purchase Plan

(after tax)

Husky Contribution(Plus employee voluntary

contributions)

and/or

and/or

Elect the RRSP or Husky Share option on iConnect. If no election is made, the default is the taxable Non Registered

account

You can direct money from your Non Registered account as follows:

What are the changes?

If no election is made, contributions will remain in the Non-registered Sun Life Money Market fund

RRSP/Spousal RRSP

TFSAHusky Stock

Purchase Planand/or

and/or

Non Registered

Making Elections

Making my Elections

To elect the Group RRSP or Husky Share Purchase plan:

• Log into iConnect using your network ID and password

• Click the Employee Self-Service tab at the top of the page

• On the Employee Self-Service Overview page, Click Savings Plan – Update Husky Provided Allocations to update the employer portion of your savings plan

• The Savings Plan Change Form will open in a separate window; Scroll down to fill in all required fields

Making my Elections (cont.)

5. The Employee General Information section is pre-populated with your name and employee ID, and the Introduction section provides direction for filling out the form

6. Select the effective date for the change

7. Select the date from the calendar drop down, and then click Refresh Data. This displays the current values of your allocations as at the selected date

8. Input your new allocations by selecting the percentages from the drop down boxes. Note: Your selections must add up to 5%

Making my Elections (cont.)

9. Check the box to confirm that you understand the changes you have made, and authorize Husky to implement the changes

10.Click Check and Send to verify your selections. Note: When you do this, the effective date becomes either the 16th of the month, or the 1st of the next month, depending on the date you selected. Click Send to submit your changes

Making Investment Changes

Making Investment Changes

• You’ll need an access ID and password to access your account online

• If you are a current Husky DC Pension or Group RRSP member, your current Sun Life Financial access ID and Password will enable you to reallocate your Husky Savings Plan assets

Don’t have an access ID or password?

• Go to mysunlife.ca and select the “register now” link. You will need your account number (see your welcome letter or your statement for this number). Welcome letters with access IDs & instructions to obtain a password will be sent to all non-DC / RRSP members shortly

TFSA

Contributions to the TFSA

• Governed by CRA legislation

• CRA will report contribution room on Notice of Assessment ($5,000 per person in 2012)

• Indexed annually, rounded to nearest $500

• Contributions are after tax dollars

• Unused contribution room carries forward each year, indefinitely

• Lump sum payments or pre-authorized debit directly to Sun Life Financial – contact Sun Life for more information

Contributions to the TFSA

• May have more than one TFSA

• Total annual contribution must stay within the $5,000 limit

• Over-contributions subject to penalty of 1% per month

• Investment management fees are the same as the other Husky funds

Withdrawals from the TFSA

• Withdraw for any purpose at anytime

• Withdrawals are tax-free, original contributions plus investment growth

• No restrictions (or suspensions)

• $25 withdrawal fee

• Any amount withdrawn can later be re-contributed to a TFSA – the next calendar year

• Increases contribution room in the following year

• Withdrawals have no impact on income tested government benefits OAS, GIS, EI benefits, Child Tax Credits, etc.

Husky Share Purchase Plan

Husky Share Purchase Plan

Share Transaction Processing:•Frequency of trading is daily (employees can initiate transactions every day)•Market timing of trade is next-day (i.e. today’s transaction have a “pending” status overnight and get traded on market next business day morning)•Contributions are processed when received•Trading price – all investment or redemption instructions are processed and a net trading price is determined•Brokerage commissions are paid by the employee - $0.03/share

• Inter-fund and inter-product transfers are permitted

Three types of withdrawals permitted (no penalties or consequences for withdrawals) :

• Cash withdrawal (cheque mailed)• In-kind transfer (electronic book based transfer to a brokerage firm)• Physical share certificates (couriered to employee)

Transactions (redemptions and transfers) can be processed:

• Up to 3pm ET by phone through the call centre• Up to 4pm ET on the Internet

Husky Share Purchase Plan

• Savings plan allocation and / or additional voluntary payroll deduction make purchasing Husky shares easy and convenient

• Lower trading costs; because of the combined buying power of Husky and Sun Life, you pay fees that are generally lower than what you would pay on your own

• Husky pays most of the administration fees on your behalf

• It’s an excellent way to share in the long-term growth of your company

• There is no Husky matching or discounting• Dividends are reinvested to purchase more shares

Husky Share Purchase Plan

Your Responsibilities

You are responsible for:

•Understanding and being aware of your annual RRSP / TFSA contribution limit (stipulated on your CRA Notice of Assessment and not over contributing

•Defining, monitoring and revising your investment strategy

•Paying for the fund management fees

•Understanding your risk tolerance and potential volatility of your investments

Responsibilities as a member of your plan

• Researching and reviewing the available investment options

• Making use of the information and tools available to assist you in making informed decisions

• Obtaining independent advice should you deem it necessary

• Allocating the contributions among the available investment options

Responsibilities as a member of your plan (cont.)

Plan Fees

Investment Management Related Fees:•Fund Management Fees are paid monthly (they appear as an expense transaction the first business day each month)

•No front or back end load charges

Plan Administration Fees:•Fees paid by Husky•Withdrawals or transfers for the GRSP/NREG:

• One free withdrawal per calendar year • $10 for each additional withdrawal or transfer

NREG Withdrawals and Plan Fees Cont’d

Sun Life Financial will pay withdrawals to you:– By cheque or – Electronic bank transfer

Plan Administration Fees:

•TFSA and Share Purchase Plan withdrawals or inter plan transfers:

− $25 per withdrawal

Action Required

Action Required

• From September 17, 2012, you will have the opportunity to direct Husky’s contributions to the investment vehicle(s) of your choice via iConnect.

• You must make your selection using the Husky selection tool found on iConnect

• If no election is made, Husky’s contributions will be directed to the Sun Life money market fund within the Non-Registered savings plan.

Action Required

• If you wish to participate in the Group RRSP, TFSA or the Husky Share purchase plan, you must enrol to ensure contributions are allocated as you desire. The enrollment form can be found on iConnect under the Health, Benefits & Retirement Forms

• Contributions can be made to the TFSA by transferring your NREG funds, providing lump sum contributions to Sun Life or by the Automatic Cheque Plan (Complete Section 5 on the TFSA Application if this is your desire)

Action Required

• If you are a current Husky DC Pension or Group RRSP member, your current Sun Life Access ID and Password will enable you to change your Savings Plan investment options

Accrual Amount July - September

• This payment will occur as it has in the past

• Allocation will be paid as taxable cash, unless the employee elects the Group RRSP,

• If the RRSP is elected – the allocation will be sent to Sun Life Financial

• The actual dollar allocation can not be used to purchase shares or be deposited into the Non Registered since taxes apply

• The employee must ensure they have enrolled in the RRSP or have an existing account in the plan

After October 1st

• Allocations to the RRSP occur on a pre tax basis

• Allocations to the stock plan or NREG will be after tax

– Taxes deducted for the NREG or Stock Plan allocations will be estimated based on the marginal tax rate from your province of residence

Choosing Your Funds

Which approach is right for you?

• The Fund Manager creates a fund with specific asset allocation – “one-stop shopping”

• Match your investment risk profile to the right fund

• The Fund Manager rebalances the fund

• Based on your risk tolerance -revisit periodically

Pre-built• Build your portfolio using

the different investment funds

• Match your investment risk profile with a suggested asset mix

• You’ll need to rebalance periodically to maintain your target asset allocation

• Based on your risk tolerance - revisit periodically

Build your own

Conservative InvestorScore of 35 points or less

Moderate InvestorScore of 36 to 85 points

Balanced InvestorScore of 86 to 145 points

Investment Risk Profiler

Your investment fund choices

Moderate – High

High

Beutel Goodman Canadian Equity Beutel Goodman Small Cap MFS McLean Budden Cdn Equity Gwth Fund

Canadian Equity

Low – Moderate Beutel Goodman Income FundBonds

Moderate – High MFS Global EquityForeign Equity

0.51%

0.53%

0.60%

0.49%

1.11%

RiskFund NameAsset Class FMF*

Low Sun Life Assurance Guaranteed 3 Year Sun Life Financial Money Market

Guaranteed/

Money Market

N/A

0.39%

Balanced Beutel Goodman Balanced Fund BlackRock Moderate Balanced BlackRock Conservative Balanced BlackRock Aggressive Balanced Greystone Balanced Segregated Fund

Moderate 0.51%

0.56%

0.55%

0.58%

0.67%

Sun Life MFS McLean Budden US Equity 0.66%U.S. Equity Moderate – High

*FMFs as of Aug 31st, 2012

Build your own asset mix

Investment

Type

Investment Option

15% U.S. Equity Sun Life MFS McLean Budden US Equity

15% International Equity

MFS Global Equity

20% Canadian Equity MFS McLean Budden Cdn Equity Gwth Fund

Beutel Goodman Canadian Equity

40% Bond/

Fixed Income

• Beutel Goodman Income

10% Guaranteed/

Money Market

SLF Money Market Sun Life Assurance 3 Year

Guaranteed

Example: A score of 36 to 85 points - Moderate

15%U.S. Equity

20%CDN. Equity

40%Fixed Income

10%Money Market

15%Intl. Equity

Get Involved

Additional on-line tools to help

Planning Tools

• Withdrawal Calculator• Capital Gains vs. RRSP Calculator• Mortgage vs. RRSP Calculator• RRSP Loan Calculator• Non Resident Tax Calculator• Retirement Planner - Updated

Retirement Tools• Annuity Premium Calculator• Old Age Security Calculator• Registered Retirement Income Fund (RRIF) Calculator

Sun Life is Here To Help

• Receive up-to-date account balances

• View transaction history• Make investment changes• Link directly to investment reports• View online member statements

Internetmysunlife.ca/ my Sun Life Mobile

• My balances• My contributions• Help me save

• 24 hour automated phone account access

• Representatives available every business day (8 am to 8 pm ET)

• Account updates• 189 languages supported• Transaction processing and

support

Customer Care Centre1-866-733-8612

My Sun Life Mobile

• Check plan balances

•View recent contributions

•Three new financial planning tools to help you save!

Visit mysunlife.ca/mobile for a test drive

*App available for download, free of charge through the BlackBerry and iPhone app stores

Fast and easy access, wherever you go

Questions?HRINFOLINE@huskyenergy.com OR

Call 403-298-6658