Document:

Exhibit 10.1

                              EMPLOYMENT AGREEMENT

          MEMORANDUM OF AGREEMENT made as of the 21st day of December, 2000.

BETWEEN:

                   CHRISTOPHER MACKENZIE
                   of the City of London, England,

                   (hereinafter referred to as the "Executive"),

                                              OF THE FIRST PART,

                    - and -

                   TRIZECHAHN CORPORATION,
                   a corporation existing under the laws
                   of the Province of Ontario,

                   (hereinafter referred to as "TrizecHahn"),

                                              OF THE SECOND PART.

         WHEREAS the Executive has agreed to become the Chief Executive Officer
and Deputy Chairman of TrizecHahn effective as of January 1, 2001 on the terms
and conditions set out herein;

         AND WHEREAS the Executive and TrizecHahn have agreed to enter into this
Agreement in order to provide for the terms and conditions upon which the
Executive shall be employed by TrizecHahn;

         NOW THEREFORE in consideration of the respective covenants hereinafter
set forth, and in consideration of $1.00 paid by each party to the other and for
other good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged), the parties hereto agree as follows:

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1.       Definitions

         In this Agreement:

    (a)  "Agreement" means this Agreement, as amended from time to time
         hereafter;

    (b)  "Annual Salary" has the meaning ascribed thereto in Section 5.1(a)
         hereof;

    (c)  "business day" means any day other than a Saturday or Sunday upon which
         banks are open for business in Toronto, Ontario;

    (d)  "Effective Date" means January 1, 2001;

    (e)  "Permanent Incapacity" means the inability of the Executive by reason
         of illness, disease, mental or physical disability or incapacity or
         otherwise to perform his duties under this Agreement (A) for a period
         of 120 business days in the aggregate during any period of 145
         consecutive business days unless, at the end of such 120 business days
         there are reasonable grounds for expecting that the Executive will be
         capable of resuming and willing to resume his duties on a full-time
         basis within a further period of 120 business days, or (B) for a period
         of 210 business days in the aggregate during any period of 290
         consecutive business days; and

    (f)  "person" includes an individual, body corporate, partnership,
         unincorporated syndicate, unincorporated organization, trust, trustee,
         executor, administrator or other legal representative.

2.       Employment and Acceptance

         On and subject to the terms and conditions of this Agreement,
TrizecHahn shall employ the Executive on the terms and conditions set forth
herein and the Executive hereby accepts such employment.

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<PAGE>

3.       Term of Employment

         The initial term of employment of the Executive hereunder shall be for
a period of three years, commencing on the Effective Date. The Executive's
employment with TrizecHahn will continue beyond December 31, 2003 if the parties
mutually agree to same in writing prior to that date. If they so agree, the
parties will negotiate at that time mutually acceptable employment arrangements
in respect of the period subsequent to December 31, 2003, and such arrangements
will be reflected either in a written amendment to this Agreement or in a new
written employment agreement that will replace and supersede this Agreement. The
parties agree that not later than July 1, 2003 they will discuss the intentions
of each party with respect to the renewal or non-renewal of the Executive's
employment with TrizecHahn, so as to allow each party adequate time to make
alternative arrangements in the event that it is apparent that such employment
will not be renewed effective January 1, 2004.

4.       Responsibilities

     (a) Duties. The Executive shall serve as the Chief Executive Officer and
Deputy Chairman of TrizecHahn during the term of his employment hereunder,
unless the Executive and TrizecHahn otherwise mutually agree. The Executive
shall perform such duties and exercise such powers as may from time to time be
prescribed by the Board of Directors of TrizecHahn; provided that the duties and
powers prescribed by the Board of Directors shall be commensurate in all
respects with those customarily associated with and incident to the positions of
Chief Executive Officer and Deputy Chairman of corporations of a size comparable
to that of TrizecHahn.

     (b) Reporting. The Executive shall report directly to the Board of
Directors of TrizecHahn.

     (c) Performance of Duties. In the performance of his duties, the Executive
shall act honestly, in good faith and in the best interests of TrizecHahn and
shall exercise the degree of diligence and responsibility that a person holding
the position of Chief Executive Officer and Deputy Chairman of TrizecHahn would
reasonably be expected to exercise in comparable circumstances, subject always
to the instructions, control and direction of the Chairman or the Board of
Directors of TrizecHahn; provided, however, that notwithstanding the foregoing,
the Executive shall be allowed to spend a reasonable amount of time during
business hours dealing with his personal investments, so long as doing so does
not materially interfere with the performance of his duties hereunder. The
Executive shall devote the whole of his time, attention and ability during
business

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hours to serving TrizecHahn on an exclusive and full-time basis as aforesaid,
except during holidays, in case of illness or accident, or as may be otherwise
approved from time to time by the Chairman or the Board of Directors of
TrizecHahn; provided, however, that notwithstanding the foregoing, the Executive
shall be allowed to spend a reasonable amount of time during business hours
dealing with his personal investments, so long as doing so does not materially
interfere with the performance of his duties hereunder. The Executive shall be
bound by and shall faithfully observe and abide by all of the rules, regulations
and corporate policies of TrizecHahn from time to time in force which are
brought to the attention of the Executive or of which he should reasonably be
aware.

     (d) Office Location. The Executive shall be provided with an office in the
executive offices of TrizecHahn.

5.       Compensation

     (a) Annual Salary. TrizecHahn shall pay the Executive an annual salary (the
"Annual Salary") of U.S.$1.95 million, payable in U.S. dollars not less
frequently than monthly in accordance with the usual practices of TrizecHahn
less such deductions as are required to be withheld by applicable law and
regulation. The Annual Salary payable to the Executive by TrizecHahn will be
reviewed annually by the Board of Directors or by a committee of the Board of
Directors of TrizecHahn in accordance with the policies and procedures that
apply to other senior officers of TrizecHahn in order to determine whether any
change to the Annual Salary is warranted; provided, however, that under no
circumstances will the Annual Salary paid to the Executive be less than
U.S.$1.95 million.

     (b) Annual Bonuses. The Executive shall be paid an annual bonus by
TrizecHahn in such amount as shall be determined by the Board of Directors or by
a committee of the Board of Directors of TrizecHahn in accordance with the
policies and procedures established by the Board of Directors or such committee
from time to time, in order to award the Executive for his performance and the
performance of TrizecHahn during the applicable year. The annual bonus payable
to the Executive during each of the three years of the Executive's employment
hereunder will be a minimum of U.S. $1,425,000 and will be a maximum of 150% of
his Annual Salary during the applicable year.

6.       Stock Options

         In order to induce the Executive to accept employment with TrizecHahn
on the basis contemplated herein, the Board of Directors has granted the
Executive non-assignable options to

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purchase 1.5 million subordinate voting shares at a strike price of
U.S.$14.87 per share, being the closing price of such shares on the New York
Stock Exchange on the trading day prior to the December 14, 2000 date of grant
of those options, subject to the receipt of all necessary regulatory approvals.
On and after each of the first three anniversaries of January 1, 2001, the
Executive shall acquire the right to purchase one-third of the shares subject to
such stock options. All of such stock options shall expire seven years from the
date on which they were granted to the Executive; provided, however, that in the
event that the Executive's employment hereunder is terminated, the right of the
Executive to thereafter exercise such options shall be as set forth in Section
10(h) below. All other terms and conditions of such stock options shall be as
set forth in the stock option plan of TrizecHahn presently in effect. The
Executive acknowledges having received a copy of such stock option plan.

7.       Expenses

     (a) Within five business days following the Effective Date, TrizecHahn
shall pay to the Executive the sum of U.S.$300,000 in order to pre-find travel
and accommodation expenses expected to be incurred by the Executive in order to
work from the Toronto offices of TrizecHahn during the six month period
following January 1, 2001 as well as all reasonable relocation expenses incurred
by the Executive in order to relocate to the executive offices of TrizecHahn at
or prior to the end of that six month period. The Executive agrees to complete
such relocation at or prior to the end of such period. Any excess remaining
after the expenses referred to above have been satisfied by the Executive (if
any) may be retained by the Executive as additional compensation hereunder.

     (b) Subject to such policies as may from time to time be established by the
Board of Directors or a committee of the Board of Directors of TrizecHahn from
time to time, TrizecHahn shall pay or reimburse the Executive for all reasonable
authorized travel and other out-of-pocket expenses actually incurred by the
Executive in the performance of the Executive's duties under this Agreement upon
presentation of such expense statements or vouchers or such other supporting
information as TrizecHahn may require.

8.       Benefits

         The Executive will be entitled to fully participate in the benefit
plans generally available to the senior officers of TrizecHahn from time to
time.

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9.       Vacation

         The Executive will be entitled to four weeks of paid vacation per
calendar year.

10.      Termination of Employment

         The following terms and provisions shall apply to the termination of
the Executive's employment hereunder:

     (a) Termination For Cause. TrizecHahn may terminate the Executive's
employment at any time for cause without payment of any compensation of any
nature or kind including, without limitation, by way of anticipated earnings,
damages or payment in lieu of notice. Notwithstanding the foregoing, in the
event that any portion of the Executive's Annual Salary has been earned but not
paid or any expenses referred to in Section 7 have been incurred by the
Executive but not reimbursed, in each case to the date of termination of his
employment, such amounts shall be paid to the Executive within 15 business days
following such date of termination. In the event that TrizecHahn believes that
it has cause to terminate the Executive's employment, it shall provide the
Executive with a notice in writing outlining in reasonable detail the conduct or
circumstances which TrizecHahn believes provides it with such cause for
termination. The Executive shall be provided with an opportunity to meet with
and speak to the Board of Directors of TrizecHahn not more than 10 days
thereafter to discuss that notice. The Executive's employment will not be
terminated until the Executive has had the opportunity to be so heard by the
Board of Directors.

     (b) Death. If the Executive's employment is terminated by reason of the
Executive's death, the Executive's estate will be entitled to receive and
TrizecHahn shall pay or cause to be paid to them or it, as the case may be, the
amounts specified in the benefit and insurance plans of TrizecHahn as being
payable on the death of the Executive, such sums to be paid in accordance with
the provisions of those plans as then in effect. In addition, in the event that
any portion of the Executive's Annual Salary has been earned but not paid or any
expenses referred to in Section 7 have been incurred by the Executive but not
reimbursed, in each case to the date of death, such amounts shall be paid to the
Executive's estate within 15 business days thereafter.

     (c) Permanent Incapacity. In the event of the Permanent Incapacity of the
Executive, his employment may thereupon be terminated by TrizecHahn and, in such
event, TrizecHahn shall pay or cause to be paid to the Executive the amounts
specified in the benefit and insurance plans of TrizecHahn as being payable in
the event of the permanent incapacity or disability of the Executive, such sums
to be paid in accordance with the provisions of those plans as then in effect.
In addition,

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in the event that any portion of the Executive's Annual Salary has been earned
but not paid or any expenses referred to in Section 7 have been incurred by the
Executive but not reimbursed, in each case to the date of termination of his
employment, such amounts shall be paid to the Executive within 15 business days
following such date of termination.

     (d) Termination by Executive. The Executive may terminate his employment
with TrizecHahn upon giving one month's written notice, or such shorter period
of notice as TrizecHahn may accept. In the event that any portion of the
Executive's Annual Salary has been earned but not paid or any expenses referred
to in Section 7 have been incurred by the Executive but not reimbursed, in each
case to the date of termination of his employment, such amounts shall be paid to
the Executive within 15 business days following such date of termination.

     (e) Other Termination Events. As indicated in Section 3 above, unless the
parties mutually agree to extend the term of the Executive's employment beyond
December 31, 2003, the Executive's employment hereunder will not continue beyond
that date. TrizecHahn also may terminate the Executive's employment at any time
for any reason other than as contemplated above in this section 10 by providing
written notice to the Executive to that effect, in which event the termination
shall take effect as at such time when such notice is received by the Executive.

     (f) Compensation Payable if Employment Not Continued. In the event that the
Executive's employment with TrizecHahn does not continue beyond the end of the
initial three year term hereunder as contemplated in Section 3 above pursuant to
a written amendment to this Agreement or a new written employment agreement,
TrizecHahn shall pay to the Executive by lump sum payment within 15 business
days following the Executive's termination of employment on or after December
31, 2003 the following amounts:

         (i)   if not theretofore paid, the Executive's Annual Salary to and
               including the date of termination, the bonus payable to the
               Executive in respect of the year ended December 31, 2003 and any
               expenses referred to in Section 7 that have been incurred by the
               Executive but not been reimbursed; and

         (ii)  an amount equal to the aggregate of (x) the Executive's Annual
               Salary as at the date of termination, (y) the bonus paid to the
               Executive in respect of the year ended December 31, 2003, and (z)
               an amount equal to the present cash value to the Executive
               determined on an annual basis of all benefits provided to the
               Executive immediately prior to the termination of his employment,
               as determined

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<PAGE>

               in good faith by the Board of Directors or a committee of the
               Board of Directors of TrizecHahn.

     (g) Compensation Payable if Employment Otherwise Terminated. In the event
that the Executive's employment is terminated by TrizecHahn as contemplated in
the last sentence of Section 10(c) above or is terminated by the Executive
following a Change in Control of TrizecHahn as contemplated in Schedule B
hereto, TrizecHahn shall pay to the Executive by lump sum payment within 15
business days thereafter the following amounts:

         (i)   if not theretofore paid, the Executive's Annual Salary to and
               including the date of termination together with any expenses
               referred to in Section 7 that have been incurred by the Executive
               but not reimbursed;

         (ii)  if the Executive's employment is terminated as contemplated in
               this Section 10(g) on or prior to December 31, 2001, an amount
               equal to the aggregate of (x) the Annual Salary that would have
               been paid to the Executive had he continued to be employed to
               December 31, 2003, using the Annual Salary in effect at the time
               of termination of employment, (y) two times the bonus paid to the
               Executive in respect of the year ended December 31, 2001 or, if
               the termination of the Executive's employment occurs before that
               bonus has been determined by the Board of Directors or a
               committee of the Board of Directors and paid to the Executive,
               three times the minimum bonus payable to the Executive in respect
               of the year ended December 31, 2001 as contemplated in Section
               5(b) above, and (z) an amount equal to the present cash value to
               the Executive determined over the period between the date of
               termination of his employment and December 31, 2003 of all
               benefits provided to the Executive immediately prior to the
               termination of his employment, as determined in good faith by the
               Board of Directors or a committee of the Board of Directors of
               TrizecHahn;

         (iii) if the Executive's employment is terminated as contemplated in
               this Section 10(g) after December 31, 2001 and on or prior to
               December 31, 2002, an amount equal to the aggregate of (x) the
               Annual Salary that would have been paid to the Executive had he
               continued to be employed to December 31, 2003 using the Annual
               Salary in effect at the time of the termination of employment,
               (y) the bonus paid to the Executive in respect of the year ended
               December 31, 2002 or, if the termination of the Executive's
               employment

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               occurs before that bonus has been determined by the Board of
               Directors or a committee of the board of Directors and paid to
               the Executive, two times the bonus paid to the Executive in
               respect of the year ended December 31, 2001 as contemplated in
               Section 5(b) above, and (z) an amount equal to the present cash
               value to the Executive determined over the period between the
               date of termination of his employment and December 31, 2003 of
               all benefits provided to the Executive immediately prior to the
               termination of his employment, as determined in good faith by
               the Board of Directors or a committee of the Board of Directors
               of TrizecHahn; and

         (iv)  if the Executive's employment is terminated as contemplated to
               this Section 10(g) at any time on or after January 1, 2003, an
               amount equal to the aggregate of (x) the Annual Salary in effect
               on the date of termination of his employment, (y) the bonus paid
               to the Executive in respect of the year ended December 31, 2002,
               and (z) an amount equal to the present cash value to the
               Executive determined on an annual basis of all benefits provided
               to the Executive immediately prior to the termination of his
               employment, as determined in good faith by the Board of Directors
               or a committee of the Board of Directors of TrizecHahn.

     (h) Stock Options.

         (i)   In the event that the Executive's employment with TrizecHahn is
               terminated as contemplated in Sections 10(a), (b),(c) or (d)
               above, the right of the Executive or his estate, as the case may
               be, to retain and exercise his vested or unvested stock options
               shall be as set forth in Schedule A annexed hereto.

         (ii)  In the event that the Executive's employment with TrizecHahn is
               terminated as contemplated in Section 10(f) above, the Executive
               shall be entitled to retain and exercise the stock options
               referred to in Section 6 above until December 31, 2005.

         (iii) In the event that the Executive's employment with TrizecHahn is
               terminated prior to December 31, 2003 as contemplated in Section
               10(g) above, the Executive shall be entitled to retain all of the
               stock options referred to in Section 6 above until December 31,
               2005 and to exercise such options at any

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<PAGE>

               time after they have vested as contemplated in that Section up
               to December 31, 2005.

         (iv)  Any stock options that are not exercised for any reason
               whatsoever on or prior to the date on which the Executive is
               thereafter precluded from exercising same as provided above or as
               provided in Schedule A annexed hereto shall thereupon be
               terminated without any further act required by either TrizecHahn
               or the Executive and the Executive shall not be entitled to any
               compensation of any nature or kind in respect thereof.

     (i) Statutory Deductions. All payments required to be made to the Executive
or his estate under this Section 10 shall be made net of all deductions required
to be withheld by applicable law and regulation.

     (j) Fair and Reasonable, etc. The parties acknowledge and agree that the
payment and stock option provisions contained in above in this Section are fair
and reasonable and the Executive acknowledges and agrees that such payments and
stock option entitlements are inclusive of any notice or pay in lieu of notice,
severance pay or damages to which he would otherwise be entitled to under
statute, pursuant to common law or otherwise in the event that his employment is
terminated pursuant to or as contemplated in such Section. The parties further
agree that upon any termination of the employment of the Executive and the
payment to the Executive or his estate, as the case may be, of the amounts
contemplated above in this Section, as well as any expenses which the Executive
is entitled to have reimbursed as contemplated in Section 7 above, other than
the stock option rights of the Executive set forth in Section 10(h) above, the
Executive shall have no action, cause of action, claim or demand of any nature
or kind whatsoever against TrizecHahn or against any other person as a
consequence of, in respect of or in connection with this Agreement or such
termination of the Executive's employment.

     (k) Return of Property. Upon any termination of the employment of the
Executive by the Executive or by TrizecHahn as contemplated herein, the
Executive or the Executive's estate shall at once deliver or cause to be
delivered to TrizecHahn all books, documents, effects, money, securities, credit
cards or other property belonging to TrizecHahn or for which TrizecHahn is
liable to others, which are in the possession, charge, control or custody of the
Executive.

     (l) Deemed Resignation as Director. In the event that the Executive's
employment with TrizecHahn terminates as contemplated above in this Section 10,
the Executive shall thereupon be

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deemed for all purposes to have resigned as a director of TrizecHahn without any
further act being required by either party.

11.      Confidentiality

         The Executive shall not (either during the term of his employment by
TrizecHahn or at any time thereafter) disclose any information relating to the
private or confidential affairs of TrizecHahn or relating to any secrets of
TrizecHahn to any person other than for the purposes of TrizecHahn or use any
such information for any purpose whatsoever other than for the purposes of
TrizecHahn; provided, however, that the Executive may disclose such information
to his personal lawyers, accountants and other professional advisors where it is
necessary to do so in order to obtain their professional advice and assistance
from time to time and further provided that the Executive may make any
disclosures required under applicable laws.

12.      Arbitration

     (a) In the event of any dispute arising out of or relating to the rights
and obligations of the parties under this Agreement, the parties shall use their
respective best efforts to settle such dispute. To this effect, they shall
consult and negotiate with each other in good faith to reach a just and
equitable solution satisfactory to both parties. If they do not reach such
solution within 30 days, then upon notice by one party to the other, the dispute
shall be finally settled by arbitration pursuant to the provisions of the
Arbitrations Act, 1991 (Ontario), as that statute may be amended, supplemented
or replaced from time to time before or after the date of this Agreement.

     (b) The arbitration tribunal shall consist of one arbitrator appointed by
the mutual agreement of the parties or, in the event of failure to so agree
within 30 days of notice by either party pursuant to Section 12(a), either party
may apply to a judge of the Ontario Superior Court of Justice to appoint an
arbitrator. The arbitrator shall be qualified by education, training and
experience to pass upon the particular matter to be decided. Any arbitrators
appointed under this Section shall be current, former or retired judges of the
Ontario Superior Court of Justice (inclusive of antecedent courts) or of the
Federal or Supreme Court of Canada.

     (c) The arbitrator shall be instructed that time is of the essence in
proceeding with his determination of any dispute.

     (d) The arbitration shall be conducted in Toronto, Ontario, on such
procedural basis as the arbitrator may determine.

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     (e) The arbitration award shall be given in writing, shall be final and
binding on the parties and not subject to review or appeal for any reason
whatsoever and shall deal with the question of costs of the arbitration and all
matters relating thereto.

13.      Miscellaneous

     (a) Notices. Any notice required or permitted to be given hereunder shall
be sufficiently given if delivered personally or mailed by pre-paid registered
mail addressed to TrizecHahn at BCE Place, 181 Bay Street, Suite 3900, Toronto,
Ontario M5J 2T3, Attention: General Counsel, or to the Executive at the
principal office of TrizecHahn in the City of Toronto or at his last place of
residence contained in the records of TrizecHahn, with a copy to Debevoise &
Plimpton, 875 Third Avenue, New York, New York, 10022, Attention: Bruce D.
Haims. Any such notice, if delivered, shall be deemed to have been given upon
its delivery and, if mailed as aforesaid, shall be deemed to have been given on
the fourth business day following the date of mailing. Any party hereto may
change its address for notice by notice given to each party hereto in accordance
with the foregoing.

     (b) Time of Essence. Time shall be of the essence of this Agreement and of
every provision hereof.

     (c) Divisions and Headings. The division of this Agreement into Articles,
Sections and clauses and the insertion of headings are for convenience of
reference only and shall not affect the construction or interpretation hereof.

     (d) Gender and Number. In this Agreement, unless the context otherwise
requires, words importing the singular include the plural and vice versa and
words importing gender include all genders.

     (e) Severability. The invalidity or unenforceability of any provision or
part of any provision of this Agreement shall not affect the validity or
enforceability of any other provision or part thereof and any such invalid or
unenforceable provision or part thereof shall be deemed to be severable, and no
provision or part thereof shall be deemed dependent upon any other provision or
part thereof unless expressly provided for herein.

     (f) Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto pertaining to the subject matter hereof and
supersedes all prior discussions, understandings and arrangements between the
parties in respect thereof. No amendment, waiver or

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termination of this Agreement shall be binding unless executed in writing by
each party to be bound thereby. No waiver of any provision of this Agreement
shall be deemed to or shall constitute a waiver of any other provision and no
such waiver shall constitute a continuing waiver unless otherwise expressly
provided.

     (g) Successors and Assigns. This Agreement shall not be assignable by any
of the parties hereto without the prior written consent of each other party, but
subject thereto shall enure to the benefit of and be binding upon the parties
hereto and their respective legal personal representatives, successors and
assigns.

     (h) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Province of Ontario and the laws of Canada
applicable therein.

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     (i) Costs of Executive. TrizecHahn agrees to reimburse the Executive for
reasonable legal fees and disbursements incurred by him in order to obtain
independent legal advice in respect of this Agreement, to a maximum of
U.S.$10,000.

         IN WITNESS WHEREOF the parties hereto have executed this Agreement as
of the date first above written.

SIGNED, SEALED AND DELIVERED        )
     in the presence of             )
                                    )
                                    )        /s/  Christopher Mackenzie
                                    )        --------------------------
                                    )        CHRISTOPHER MACKENZIE

                                             TRIZECHAHN CORPORATION

                                             by
                                               ------------------------

<PAGE>

     (i) Costs of Executive. TrizecHahn agrees to reimburse the Executive for
reasonable legal fees and disbursements incurred by him in order to obtain
independent legal advice in respect of this Agreement, to a maximum of
U.S.$10,000.

         IN WITNESS WHEREOF the parties hereto have executed this Agreement as
of the date first above written.

SIGNED, SEALED AND DELIVERED        )
     in the presence of             )
                                    )
                                    )
                                    )        CHRISTOPHER MACKENZIE

                                             TRIZECHAHN CORPORATION

                                             by /s/  Peter Munk
                                             -----------------------------

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                                   SCHEDULE A

                               Stock Option Rights

1.       Termination For Cause

         In the event the Executive's employment is terminated for cause
pursuant to the Employment Agreement, any options that were exercisable prior to
such termination shall continue to be exercisable for a period of 30 days
following the date on which the Executive's employment terminates and all other
options shall terminate and be of no further force or effect effective on the
date of such termination.

2.       Termination by Death or for Permanent Incapacity

         In the event that the Executive dies or his employment is terminated
because of the Permanent Incapacity of the Executive, the Executive or his legal
personal representatives, as the case may be, shall have the right to exercise
all of the Executive's options, whether or not vested at the date of death or
date of termination, as applicable, for a period of one year following the date
on which the Executive ceases to be an employee of TrizecHahn.

3.       Termination by Executive

         In the event that the Executive chooses to terminate his employment
with TrizecHahn as contemplated in Section 10(d) of the annexed Agreement, the
Executive shall have period of 30 days following the date on which the
Executive's employment terminates to exercise any options that were exercisable
prior to such termination and all other options shall terminate and be of no
further force or effect effective on the date of such termination.

<PAGE>

                                   SCHEDULE B

              Termination Following Change in Control of TrizecHahn

1.       As used in this Schedule, the following terms have the following
         meanings:

     (a) "Board" means the board of directors of TrizecHahn;

     (b) "Change in Control" means:

         (i)   the date upon which the following three conditions shall have
               been satisfied:

              (A)  the MVS shall have been converted into SVS in accordance with
                   their terms (the "Conversion");

              (B)  a person or group (other than Mr. Peter Munk) holds shares
                   and/or other securities which, directly or after conversion,
                   exercise or exchange thereof, would entitle the holders
                   thereof to cast 20% or more of the votes attached to the
                   outstanding Voting Shares; and

              (C)  a change in the composition of the Board within two years
                   after the date of Conversion such that the directors of
                   TrizecHahn in office immediately before the date of
                   Conversion cease to constitute a majority of the Board; or

         (ii)  the date upon which the following two conditions shall have been
               satisfied:

              (A)  the Conversion shall have occurred, and

              (B)  a person or group (other than Mr. Peter Munk) holds shares
                   and/or other securities which, directly or after conversion,
                   exercise or exchange thereof, would entitle the holders
                   thereof to cast 35% or more of the votes attached to the
                   outstanding Voting Shares; or

         (iii) the date upon which the following two conditions shall have been
               satisfied:

              (A)  a majority of the MVS are beneficially owned, or control or
                   direction is exercised over a majority of the MVS, by any
                   person or group,

<PAGE>

                   other than Mr. Peter Munk or a member of his immediate family
                   ("Change in Ownership"); and

              (B)  there is a change in the composition of the Board within two
                   years after the date of the Change in Ownership such that the
                   directors of TrizecHahn in office immediately before the date
                   of the Change in Ownership cease to constitute a majority of
                   the Board; or

         (iv)  the date upon which the following two conditions shall have been
               satisfied:

              (A)  the shareholders of TrizecHahn shall have approved (1) an
                   amalgamation or merger of TrizecHahn with any other
                   corporation (other than a direct or indirect subsidiary), (2)
                   any other business combination or consolidation; (3) a plan
                   for the liquidation of TrizecHahn, or (4) an agreement for
                   the sale or disposition of all or substantially all of the
                   assets of TrizecHahn (any one of which is hereinafter
                   referred to as a "Corporate Reorganization"); and

              (B)  within two years following a Corporate Reorganization, a
                   majority of the Board of the amalgamated or merged entity or
                   successor entity into which TrizecHahn was liquidated or
                   which acquired substantially all of the assets of TrizecHahn
                   is not comprised of individuals who were directors of
                   TrizecHahn immediately before the Corporate Reorganization;
                   or

         (v)   the date upon which the following two conditions shall have been
               satisfied:

              (A)  either of the Conversion, a Change in Ownership or a
                   Corporate Reorganization shall have occurred; and

              (B)  a person other than Christopher Mackenzie is appointed as
                   Chief Executive Officer of the amalgamated or merged entity
                   or successor entity into which TrizecHahn was liquidated or
                   which acquired substantially all of its assets (provided,
                   however, that if Christopher Mackenzie is offered such
                   appointment but declines to accept it, it is acknowledged and
                   agreed that no Change in Control shall have occurred);

                                      -2-
<PAGE>

     (c) "MVS" means the outstanding Multiple Voting Shares in the capital of
TrizecHahn at any time;

     (d) "person" includes, without limitation, an individual, corporation,
partnership, joint venture, association, trust, firm, unincorporated
organization or other legal or business entity;

     (e) "SVS" means the outstanding Subordinate Voting Shares in the capital of
TrizecHahn at any time; and

     (f) "Voting Shares" means any security of TrizecHahn carrying a right to
vote for the election of directors of TrizecHahn under all circumstances or
under circumstances that have occurred and are continuing.

2. At any time during the period commencing on the date that is three months
following a Change in Control and ending on the date that is nine months
following a Change in Control, the Executive shall have the right to terminate
his employment with TrizecHahn at his sole discretion by providing notice in
writing to that effect to TrizecHahn. In that event, the Executive shall be
entitled to receive the payments, benefits and other rights outlined in Sections
10(g) and 10(h) of the annexed Agreement.

                                      -3-
<PAGE>

                                PM Capital Corp.
                             24 Old Forest Hill Road
                            Toronto, Ontario M5P 2P7

                                                    December 21, 2000

Christopher Mackenzie
12 Lowndes Square
London SW1X 9HB
England

Dear Christopher:

         We refer to your Employment Agreement (the "Employment Agreement")
dated as of December 21, 2000 with Trizec Hahn Corporation ("TrizecHahn").

         As you discussed with Peter Munk before you agreed to accept a position
as Deputy Chairman and Chief Executive Officer of TrizecHahn, to induce you to
accept that position, PM Capital Corp. ("PM Capital") has agreed to grant to you
the right (the "Call Right") to purchase from PM Capital one million subordinate
voting shares (the "Call Shares") in the capital of TrizecHahn currently held by
PM Capital. This letter sets out the terms and conditions that apply to that
Call Right.

         Your Call Right shall mirror in all respects, mutatis mutandis, your
right to purchase 1.5 million subordinate voting shares from the capital of
TrizecHahn pursuant to the stock options (the "Stock Options") referred to in
Section 6 of the Employment Agreement, as set forth in the Employment Agreement.
In particular, but without limiting the generality of the foregoing, the
following terms and conditions shall apply to the Call Right:

    (a)  your Call Right is non-assignable;

    (b)  the purchase price under the Call Right is U.S.$14.87 per subordinate
         voting share;

    (c)  the Call Right will vest over a three year period, on the same basis as
         the Stock Options;

<PAGE>

    (d)  the Call Right will expire seven years from December 14, 2000, being
         the date on which the Stock Options were granted to you by the Board of
         Directors of TrizecHahn, unless earlier terminated as described below;

    (e)  in the event that your employment with TrizecHahn is terminated as
         contemplated in Sections 10(a), (b), (c) or (d) of the Employment
         Agreement, your right or the right of your estate, as the case may be,
         to exercise your Call Right shall be identical to the right you or your
         estate shall have to exercise your Stock Options, as set out in
         Schedule A to the Employment Agreement;

    (f)  in the event that your employment with TrizecHahn is terminated as
         contemplated in Section 10(f) of the Employment Agreement, you will be
         entitled to continue to exercise the Call Right until December 31,
         2005;

    (g)  in the event that your employment with TrizecHahn is terminated prior
         to December 31, 2003 as contemplated in Section 10(g) of the Employment
         Agreement, you will be entitled to retain the Call Right until December
         31, 2005 and to exercise such Call Right in increments at any time
         after vesting has occurred in respect of each third of the Call Right
         (or, for greater certainty, to exercise the Call Right in full after it
         has fully vested), as contemplated in Section 10(g) of the Employment
         Agreement;

    (h)  any portion of your Call Right that is not exercised for any reason
         whatsoever on or prior to the date on which you are thereafter
         precluded from exercising same as contemplated above shall thereupon be
         terminated without any further act required by either PM Capital or you
         and you shall not be entitled to any compensation of any nature or kind
         in respect thereof; and

    (i)  all other terms and conditions that apply to your Stock Options as set
         forth in the stock option plan of TrizecHahn currently in effect shall
         apply equally to your Call Right, mutatis mutandis.

         In the event that you wish to exercise your rights under the Call Right
at any time, you shall provide written notice to that effect by personal
delivery or by telecopy to PM Capital at the following address: PM Capital Corp.
c/o TrizecHahn Corporation, BCE Place, 181 Bay Street, Suite 3900, Toronto,
Ontario M5J 2T3. Such notice must be delivered prior to 5:00 p.m. (Toronto time)
on the last business day in Toronto, Ontario prior to the expiry of the Call
Right as described above

                                      -2-
<PAGE>

in order to be effective. The purchase transaction will be completed on a date
that is mutually agreed to between you and PM Capital and, in any event, within
15 business days following the date on which your exercise notice is so received
by PM Capital. At the time of completion of your purchase of subordinate voting
shares from PM Capital, you will be provided with a share certificate
representing the shares you have purchased from PM Capital against delivery to
PM Capital of the necessary funds in U.S. dollars by way of certified cheque or
bank draft made payable to PM Capital or as it may otherwise direct in writing.

         In the event you have given notice of exercise of your rights under the
Call Right as provided in the previous paragraph, PM Capital shall have the
option to cash settle the rights you have chosen to exercise. If PM Capital
chooses cash settlement, it shall provide you with written notice of this choice
not later than five business days prior to the day determined under the previous
paragraph for completing the purchase transaction (the "Completion Date"). On
the Completion Date, your rights under the Call Right will be cash settled by
payment as you may direct of an amount determined by multiplying (a) the number
of Call Shares in respect of which you have chosen to exercise your Call Right
by (b) the amount by which the average closing price of the Call Shares on The
New York Stock Exchange on the trading days occurring between the date PM
Capital provides notice that it wishes to cash settle and the Completion Date
exceeds U.S.$14.87 less (c) such deductions as are required to be withheld by
applicable law and regulations. Payment of any cash settlement shall be made by
way of certified cheque or bank draft against delivery by you to PM Capital of
an acknowledgment that your receipt of such payment terminates your rights under
the Call Right with respect to the applicable number of Call Shares.

         PM Capital represents and warrants to you that (a) PM Capital has been
duly incorporated and is an existing corporation in good standing under the laws
of its jurisdiction of incorporation, (b) this Agreement has been duly
authorized, executed and delivered by PM Capital and constitutes a valid and
legally binding obligation of PM Capital enforceable against PM Capital in
accordance with its terms and (c) the Call Shares, when delivered and paid for,
upon exercise of the Call Right in accordance with the terms hereof, will be
duly authorized, validly issued, fully paid and non-assessable, and free and
clear of any liens or encumbrances.

         This letter agreement shall be governed by and construed in accordance
with the laws of the Province of Ontario. For the purposes hereof, the term
"business day" means any day other than a Saturday or Sunday on which banks are
open for business in Toronto, Ontario. Time shall be of the essence hereof.

                       ---------------------------------

                                      -3-
<PAGE>

         If the foregoing accords with your understanding of the arrangements we
have agreed to, please sign below to signify your acceptance thereof, whereupon
this letter will constitute a binding agreement between PM Capital and you.

                                      Yours truly,
                                      PM Capital Corp.

                                      by
                                        ------------------------------

                       ---------------------------------

         The foregoing is hereby agreed to this 21st day of December, 2000.

                                      /s/ Christopher Mackenzie
                                          ----------------------------
                                          Christopher Mackenzie

                                      -4-
<PAGE>

                             TrizecHahn Corporation
                                    BCE Place
                           181 Bay Street, Suite 3900
                            Toronto, Ontario M5J 2T3

                                                    December 21, 2000

Christopher Mackenzie
12 Lowndes Square
London SW1X 9HB
England

Dear Christopher:

         Reference is made to the Employment Agreement between you and
TrizecHahn Corporation (the "Company"), dated as of the date hereof (the
"Employment Agreement"). Pursuant to Section 4(c) of the Employment Agreement,
you will generally be required to devote your full business time towards the
performance of your duties under the Employment Agreement, except as provided in
Section 4(c) thereof or as may be approved from time to time by the Company's
Chairman or Board of Directors. This letter confirms our understanding that,
during your term of employment with the Company, you will be permitted to
continue serving in your current capacity as (i) a non-employee director of WPP
Group plc and (ii) an advisor to the Abdul Latif Jamil Group; provided in each
case that such activities do not materially interfere with the performance of
your duties under the Employment Agreement.

                                      Very truly yours,

                                      Peter Munk
                                      Chairman, TrizecHahn Corporation

Agreed and Accepted:

/s/ Christopher Mackenzie
Christopher MackenzieExhibit 10.2

                              EMPLOYMENT AGREEMENT

         MEMORANDUM OF AGREEMENT made as of the 22nd day of May, 2001.

BETWEEN:

                         GREGORY F. HANSON
                         of 135 Nod Road of the Town of Ridgefield, Connecticut,

                         (hereinafter referred to as the "Executive"),

                                                        OF THE FIRST PART,

                                    - and -

                         TRIZEC HAHN CORPORATION,
                         a corporation existing under the laws
                         of the Province of Ontario,

                         (hereinafter referred to as "TrizecHahn"),

                                                        OF THE SECOND PART.

         WHEREAS the Executive has agreed to become the Chief Financial Officer
of TrizecHahn effective as of June 1, 2001 on the terms and conditions set out
herein;

         AND WHEREAS the Executive and TrizecHahn have agreed to enter into this
Agreement in order to provide for the terns and conditions upon which the
Executive shall be employed by TrizecHahn;

         NOW THEREFORE in consideration of the respective covenants hereinafter
set forth, and in consideration of $1.00 paid by each party to the other and for
other good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged), the parties hereto agree as follows:

1.       Definitions

         In this Agreement:

         (a) "Agreement" means this Agreement, as amended from time to time
hereafter;

         (b) "business day" means any day other than a Saturday or Sunday upon
which banks are open for business in Toronto, Ontario;

                                       1

<PAGE>

         (c) "Cause" means a determination by the Chief Executive Officer of
TrizecHahn, after permitting the Executive a reasonable opportunity to be heard,
that any of the following has occurred:

              (i) wilful and continued failure by the Executive to substantially
    perform the Executive's duties with TrizecHahn (other than any such failure
    resulting from his incapacity due to physical or mental illness) after a
    demand for substantial performance improvement has been delivered in writing
    to the Executive by the Board of Directors or the Chairman or the Chief
    Executive Officer of TrizecHahn which specifically identifies the manner in
    which the Board of Directors, the Chairman or the Chief Executive Officer,
    as the case may be, believes that the Executive has not substantially
    performed his duties;

              (ii) wilful engaging by the Executive in misconduct which is
    materially injurious to TrizecHahn or a subsidiary, monetarily or otherwise;
    or

              (iii) the conviction of the Executive of a criminal offense
    involving dishonesty or other moral turpitude;

provided that no act, or failure to act, on the Executive's part shall be
considered "wilful" unless a determination is made by the Chief Executive
Officer that such act or failure to act by the Executive was in bad faith and
was without reasonable belief by the Executive that such act or failure to act
was in the best interests of TrizecHahn;

         (d) "Effective Date" means June 1, 2001;

         (e) "Permanent Incapacity" means permanent or total disability within
the meaning of the long term disability insurance policy or policies maintained
by TrizecHahn and applicable from time to time for the benefit of the Executive,
which disability entitles the Executive to the maximum benefits payable under
such policy or policies;

         (f) "person" includes an individual, body corporate, partnership,
unincorporated syndicate, unincorporated organization, trust, trustee, executor,
administrator or other legal representative;

         (g) "Renewal Period" has the meaning ascribed thereto in Section 3
hereof; and

         (h) "Salary" has the meaning ascribed thereto in Section 5(a) hereof;

2.       Employment and Acceptance

         On and subject to the terms and conditions of this Agreement,
TrizecHahn shall employ the Executive on the terms and conditions set forth
herein and the Executive hereby accepts such employment.

                                       2

<PAGE>

3.       Term of Employment

         The initial term of employment of the Executive hereunder shall be for
a period of two years, commencing on the Effective Date. The Executive's
employment hereunder will continue for successive one-year periods (each a
"Renewal Period") unless one party gives the other notice of its decision not to
continue the Executive's employment, which notice must be given at least four
months prior to the expiry of the initial term of employment or the applicable
Renewal Period, as the case may be. The parties agree that not later than
January 31 of each year of this Agreement commencing in 2003 they will discuss
the intentions of each party with respect to the renewal or non-renewal of the
Executive's employment with TrizecHahn, so as to allow each party adequate time
to make alternative arrangements in the event that it is apparent that such
employment will not be renewed effective June 1 of such year.

4.       Responsibilities

         (a) Duties. The Executive shall serve as the Chief Financial Officer of
TrizecHahn during the term of his employment hereunder, unless the Executive and
TrizecHahn otherwise mutually agree. The Executive shall perform such duties and
exercise such powers as may from time to time be prescribed by the Chief
Executive Officer or the Board of Directors of TrizecHahn; provided that the
duties and powers prescribed by the Chief Executive Officer and the Board of
Directors shall be commensurate in all respects with those customarily
associated with and incident to the position of Chief Financial Officer of
corporations of a size comparable to that of TrizecHahn.

         (b) Reporting. The Executive shall report directly to the Chief
Executive Officer of TrizecHahn.

         (c) Performance of Duties. In the performance of his duties, the
Executive shall act honestly, in good faith and in the best interests of
TrizecHahn and shall exercise the degree of diligence and responsibility that a
person holding the position of Chief Financial Officer of TrizecHahn would
reasonably be expected to exercise in comparable circumstances, subject always
to the instructions, control and direction of the Chief Executive Officer and
the Board of Directors of TrizecHahn. The Executive shall devote the whole of
his time, attention and ability during business hours to serving TrizecHahn, at
such TrizecHahn office location as may be appropriate, on an exclusive and
full-time basis, except during holidays, in case of illness or accident, or as
may be otherwise approved from time to time by the Chief Executive Officer of
TrizecHahn. The Executive shall be bound by and shall faithfully observe and
abide by all of the rules, regulations and corporate policies of TrizecHahn from
time to time in force which are brought to the attention of the Executive or of
which he should reasonably be aware.

         (d) Office Location. The Executive shall be provided with an office in
the executive offices of TrizecHahn in New York City.

5.       Compensation

         (a) Salary. TrizecHahn shall pay the Executive a salary (the "Salary")
of U.S.$500,000 per year from June 1, 2001 to May 31, 2002 and U.S.$550,000 per
year from June

                                       3

<PAGE>

1, 2002 to May 31, 2003, payable in U.S. dollars not less frequently than
monthly in accordance with the usual practices of TrizecHahn less such
deductions as are required to be withheld by applicable law and regulation. The
Executive's Salary for any Renewal Period shall be the Salary in effect
immediately prior to the commencement of the Renewal Period unless otherwise
mutually agreed by the Executive and the Board of Directors or a committee of
the Board of Directors of TrizecHahn.

         (b) Bonuses. The Executive shall be paid a bonus by TrizecHahn in such
amount as shall be determined by the Board of Directors or by a committee of the
Board of Directors of TrizecHahn in accordance with the policies and procedures
established by the Board of Directors or such committee from time to time, in
order to award the Executive for his performance and the performance of
TrizecHahn during the applicable period. The bonus payable to the Executive
shall be so determined in respect of the seven-month period ending on December
31, 2001 and following that in respect of the twelve-month period(s) ending on
December 31 of each applicable year, provided that in the event one party gives
notice to the other party that the Executive's employment will not be continued
beyond May 31, 2003 or the conclusion of the applicable Renewal Period, as the
case may be, in accordance with Section 3, the Executive shall receive a bonus
in respect of the five-month period ending on May 31 in the final year of the
Executive's employment. The bonus payable to the Executive during the
Executive's employment hereunder will be a minimum of 50% and a maximum of 100%
of his Salary during the applicable period, with a target of 70% of his Salary
during the applicable period. After the Effective Date, and from time to time
thereafter, tile Executive and TrizecHahn will mutually agree to performance
targets against which the performance of the Executive will be assessed in order
to determine his bonus for the applicable periods.

         (c) Signing Bonus. The Executive will receive a signing bonus of
U.S.$250,000 upon the execution of this Agreement.

         (d) Tax Protection. The provisions of this Section 5(d) are intended to
compensate the Executive for the any tax detriment actually incurred by the
Executive solely as a result of all or a portion of his Salary and bonus from
TrizecHahn being subject to Canadian income or employment taxes. If the
Executive pays any significant amount of Canadian income or employment taxes on
the Salary or bonus received by him from TrizecHahn for a calendar year,
TrizecHahn will make a tax equalization payment to the Executive sufficient to
permit the Executive to retain a net after-tax amount equal to the difference
between the total income and employment taxes paid to taxing authorities in the
United States and Canada on such Salary and bonus over the hypothetical income
tax that would have been payable on such Salary and bonus if such Salary and
bonus had been subject only to United States federal, state and local income and
employment taxes. The equalization payment for a calendar year shall be payable
within ninety days following the later of (i) the filing of all United States
and Canadian tax returns for the calendar year by the Executive and (ii) the
receipt by TrizecHahn of sufficient written documentation from the Executive to
calculate the payment. The tax equalization payment for each year will be
calculated reasonably and in good faith by an independent accounting firm
selected by TrizecHahn (which may be TrizecHahn's regular accounting firm) and,
absent manifest error, the determination of such accounting firm (including,
without limitation, with respect to the application of foreign tax credits and
the allocation of deductions) shall be binding on the parties hereto. The
accounting firm shall calculate the "gross up" portion of the tax

                                       4

<PAGE>

equalization payment on the assumption that such payment is subject only to
United States federal, state and local income and employment taxes. TrizecHahn
shall have the right to replace the provisions of this section with an
alternative arrangement that is intended to provide the Executive with a
substantially equivalent benefit.

6.       Stock Options

         In order to induce the Executive to accept employment with TrizecHahn
on the basis contemplated herein, on May 11, 2001 the Compensation Committee of
the Board of Directors granted the Executive non-assignable options under the
stock option plan of TrizecHahn to purchase 600,000 subordinate voting shares.
Of such options, the strike price of options to purchase one tranche of 200;000
subordinate voting shares will be Cdn$25.46 and these options will be
exercisable on or after June 1, 2002; the strike price of options to purchase
another tranche of 200,000 subordinate voting shares will be Cdn$26.96 and these
options will be exercisable on or after June 1, 2003; and the strike price of
options to purchase the third tranche of 200,000 subordinate voting shares will
be Cdn$28.46 and these options will be exercisable on or after June 1, 2004. All
of such options shall expire seven years from the date on which they were
granted to the Executive provided, however, that in the event the Executive's
employment hereunder is terminated, the right of the Executive to thereafter
exercise such stock options shall be as set forth in Section 10(h) below. Except
as otherwise provided herein, all other terms and conditions of such stock
options shall be as set forth in the stock option plan of TrizecHahn presently
in effect. The Executive acknowledges having received a copy of such stock
option plan.

7.       Expenses

         (a) If the Executive is required to relocate his place of residence in
connection with a relocation of his employment from TrizecHahn's New York City
executive offices, TrizecHahn shall pay to the Executive such amount as may be
required to ensure that the amount received by the Executive, net of any income
tax payable or deduction required to be withheld by or under applicable law and
regulation, is equal to the reasonable relocation expenses incurred by the
Executive in connection with such relocation, which expenses shall be supported
by such documentation as TrizecHahn may require. TrizecHahn may require the
Executive to provide evidence of the payment of any such income tax on the
amount paid to the Executive under this Section 7(a).

         (b) Subject to such policies as may from time to time be established by
the Board of Directors or a committee of the Board of Directors of TrizecHahn
from time to time, TrizecHahn shall pay or reimburse the Executive for all
reasonable authorized travel and other out-of-pocket expenses actually incurred
by the Executive in the performance of the Executive's duties under this
Agreement upon presentation of such expense statements or vouchers or such other
supporting information as TrizecHahn may require.

                                       5

<PAGE>

8.       Benefits

         (a) The Executive will be entitled to fully participate in the benefit
plans generally available to the senior officers of TrizecHahn from time to time
on the same terns as are generally applicable to such senior officers from time
to time.

         (b) TrizecHahn will provide a car for the use of the Executive during
the term of his employment, which car will be comparable to the Mercedes E320
the Executive currently drives.

9.       Vacation

         The Executive will be entitled to four weeks of paid vacation per
twelve-month period. A portion of any such vacation that is not used by the
Executive in a particular twelve-month period may be carried forward into future
periods subject to and in accordance with TrizecHahn's unused vacation policy in
effect from time to time.

10.      Termination of Employment

         The following terns and provisions shall apply to the termination of
the Executive's employment hereunder:

         (a) Termination For Cause. TrizecHahn may terminate the Executive's
employment at any time for Cause without payment of any compensation of any
nature or land including, without limitation, by way of anticipated earnings,
damages or payment in lieu of notice. Notwithstanding the foregoing, in the
event that any portion of the Executive's Salary has been earned but not paid or
any expenses referred to in Section 7 have been incurred by the Executive but
not reimbursed, in each case to the date of termination of his employment, such
amounts shall be paid to the Executive within 15 business days following such
date of termination.

         (b) Death. If the Executive's employment is terminated by reason of the
Executive's death, the Executive's estate will be entitled to receive and
TrizecHahn shall pay or cause to be paid to them or it, as the case may be, the
amounts specified in the benefit and insurance plans of TrizecHahn as being
payable on the death of the Executive, such sums to be paid in accordance with
the provisions of those plans as then in effect. In the event that any portion
of the Executive's Salary has been earned but not paid or any expenses referred
to in Section 7 have been incurred by the Executive but not reimbursed, in each
case to the date of death, such amounts shall be paid to the Executive's estate
within 15 business days thereafter. In addition, the minimum bonus calculated in
accordance with Section 5(b) in respect of the period, if any, in respect of
which the Executive was not paid a bonus ending on the date of death shall be
paid to the Executive's estate within 15 business days after the date of death.

         (c) Permanent Incapacity. In the event of the Permanent Incapacity of
the Executive, his employment may thereupon be terminated by TrizecHahn and, in
such event, TrizecHahn shall pay or cause to be paid to the Executive the
amounts specified in the benefit and insurance plans of TrizecHahn as being
payable in the event of the permanent incapacity or

                                       6

<PAGE>

disability of the Executive, such sums to be paid in accordance with the
provisions of those plans as then in effect. In addition, in the event that any
portion of the Executive's Salary has been earned but not paid or any expenses
referred to in Section 7 have been incurred by the Executive but not reimbursed,
in each case to the date of termination of his employment, such amounts shall be
paid to the Executive within 15 business days following such date of
termination.

         (d) Termination by Executive. The Executive may terminate his
employment with TrizecHahn upon giving one month's written notice, or such
shorter period of notice as TrizecHahn may accept. In the event that any portion
of the Executive's Salary has been earned but not paid or any expenses referred
to in Section 7 have been incurred by the Executive but not reimbursed, in each
case to the date of termination of his employment, such amounts shall be paid to
the Executive within 15 business days following such date of termination.

         (e) Other Termination Events. As indicated in Section 3 above, unless
one party gives the other party notice of its decision not to continue the
Executive's employment beyond the initial term or the applicable Renewal Period,
as the case may be, the Executive's employment hereunder will not continue
beyond the end of the initial term or applicable Renewal Period, as the case may
be. TrizecHahn also may terminate the Executive's employment at any time for any
reason other than as contemplated above in this Section 10 by providing written
notice to the Executive to that effect, in which event the termination shall
take effect as at such time when such notice is received by the Executive; for
greater certainty, this shall include any termination by way of constructive
dismissal.

         (f) Compensation Payable if Employment Not Continued. In the event
either party provides notice in accordance with Section 3 that the Executive's
employment with TrizecHahn will not continue beyond the end of the initial two
year term hereunder or the applicable Renewal Period, as the case may be,
TrizecHahn shall pay to the Executive by lump sum payment within 15 business
days following the Executive's termination of employment the following amounts:

              (i) if not theretofore paid, the Executive's Salary to and
    including the date of termination, the bonus payable to the Executive in
    respect of the five-month period ending on May 31 in the year of termination
    and any expenses referred to in Section 7 that have been incurred by the
    Executive but not been reimbursed; and

              (ii) an amount equal to the aggregate of (x) twelve months Salary
    using the Salary in effect at the time of termination, (y) twelve-fifths
    (12/5) the bonus paid to the Executive in respect of the five-month period
    ending on May 31 in the year of termination, and (z) an amount equal to the
    present cash value to the Executive determined on an annual basis of all
    benefits provided to the Executive immediately prior to the termination of
    his employment, as determined in good faith by the Board of Directors or a
    committee of the Board of Directors of TrizecHahn.

         (g) Compensation Payable if Employment Otherwise Terminated. In the
event that the Executive's employment is terminated by TrizecHahn as
contemplated in the last sentence of Section 10(e) above or is terminated by the
Executive following a Change in Control

                                       7

<PAGE>

of TrizecHahn as contemplated in Schedule A hereto, TrizecHahn shall pay to the
Executive by lump sum payment within 15 business days thereafter the following
amounts:

              (i) if not theretofore paid, the Executive's Salary to and
    including the date of termination together with any expenses referred to in
    Section 7 that have been incurred by the Executive but not reimbursed;

              (ii) if the Executive's employment is terminated as contemplated
    in this Section 10(g) on or prior to May 31, 2002, an amount equal to the
    aggregate of (x) the Salary that would have been paid to the Executive had
    he continued to be employed to May 31, 2003, using the Salary in effect at
    the time of termination of employment, (y) seventeen-sevenths (17/7) the
    bonus paid to the Executive in respect of the seven-month period ended
    December 31, 2001 or, if the termination of the Executive's employment
    occurs before that bonus has been determined by the Board of Directors or a
    committee of the Board of Directors and paid to the Executive,
    twenty-four-sevenths (24/7) the minimum bonus payable to the Executive in
    respect of the seven-month period ended December 31, 2001 as contemplated in
    Section 5(b) above, and (z) an amount equal to the present cash value to the
    Executive determined over the period between the date of termination of his
    employment and May 31, 2003 of all benefits provided to the Executive
    immediately prior to the termination of his employment, as determined in
    good faith by the Board of Directors or a committee of the Board of
    Directors of TrizecHahn; and

              (iii) if the Executive's employment is terminated as contemplated
    in this Section 10(g) at any tare on or after June 1, 2002, an amount equal
    to the aggregate of (x) twelve-months Salary using the Salary in effect at
    the time of termination of his employment, (y) the most recent bonus paid to
    the Executive, pro rated to a twelve-month period to the extent the bonus
    was paid respect of a period of less than twelve months, and (z) an amount
    equal to the present cash value to the Executive determined on an annual
    basis of all benefits provided to the Executive immediately prior to the
    termination of his employment, as determined in good faith by the Board of
    Directors or a committee of the Board of Directors of TrizecHahn.

         (h)   Stock Options.

              (i) In the event that the Executive's employment with TrizecHahn
    is terminated as contemplated in Section 10(a) above, all options shall
    terminate and be of no further force or effect effective on the date of such
    termination.

              (ii) In the event that the Executive's employment with TrizecHahn
    is terminated as contemplated in Sections 10(b) or (c) above, the Executive
    or his legal personal representatives, as the case may be, shall have the
    right to exercise all of the Executive's options, whether or not vested at
    the date of death or date of termination, as applicable, for a period of one
    year following the date on which the Executive ceases to be an employee of
    TrizecHahn.

                                       8

<PAGE>

              (iii) In the event that the Executive's employment with TrizecHahn
    is terminated as contemplated in Section 10(d) above, the Executive shall
    have period of 30 days following the date on which the Executive's
    employment terminates to exercise any options that were exercisable prior to
    such termination and all other options shall terminate and be of no further
    force or effect effective on the date of such termination.

              (iv) In the event that the Executive's employment with TrizecHahn
    is terminated as contemplated in Sections 10(f) above, the Executive shall
    be entitled to exercise all of the Executive's options, whether or not
    vested, for a period of one year following the date of termination.

              (v) In the event that the Executive's employment with TrizecHahn
    is terminated as contemplated in Section 10(g) above, the Executive shall be
    entitled to exercise all of the Executive's options, whether or not vested
    at the date of termination, for a period of one year following the date of
    termination.

              (vi) Any stock options that are not exercised for any reason
    whatsoever on or prior to the date on which the Executive is thereafter
    precluded from exercising same as provided above shall thereupon be
    terminated without any further act required by either TrizecHahn or the
    Executive and the Executive shall not be entitled to any compensation of any
    nature or kind in respect thereof.

         (i) Statutory Deductions. All payments required to be made to the
Executive or his estate under this Section 10 shall be made net of all
deductions required to be withheld by applicable law and regulation.

         (j) Fair and Reasonable, etc. The parties acknowledge and agree that
the payments contained in this Section are fair and reasonable and the Executive
acknowledges and agrees that such payments are inclusive of any notice or pay in
lieu of notice, severance pay or damages to which he would otherwise be entitled
to under statute, pursuant to common law or otherwise in the event that his
employment is terminated pursuant to or as contemplated in such Section. The
parties further agree that upon any termination of the employment of the
Executive and the payment to the Executive or his estate, as the case may be, of
the amounts contemplated above in this Section, as well as any expenses which
the Executive is entitled to have reimbursed as contemplated in Section 7 above,
the Executive shall have no action, cause of action, claim or demand of any
nature or kind whatsoever against TrizecHahn or against any other person as a
consequence of, in respect of or in connection with this Agreement or such
termination of the Executive's employment.

         (k) Return of Property. Upon any termination of the employment of the
Executive by the Executive or by TrizecHahn as contemplated herein, the
Executive or the Executive's estate shall at once deliver or cause to be
delivered to TrizecHahn all books, documents, effects, money, securities, credit
cards or other property belonging to TrizecHahn or for which TrizecHahn is
liable to others, which are in the possession, charge, control or custody of the
Executive.

                                       9

<PAGE>

11.      Confidentiality

         The Executive shall not (either during the term of his employment by
TrizecHahn or at any time thereafter) disclose any information relating to the
private or confidential affairs of TrizecHahn or relating to any secrets of
TrizecHahn to any person other than for the purposes of TrizecHahn or use any
such information for any purpose whatsoever other than for the purposes of
TrizecHahn; provided, however, that the Executive may disclose such information
to his personal lawyers, accountants and other professional advisors where it is
necessary to do so in order to obtain their professional advice and assistance
from time to time and further provided that the Executive may make any
disclosures required under applicable laws.

12.      Arbitration

         (a) In the event of any dispute arising out of or relating to the
rights and obligations of the parties under this Agreement, the parties shall
use their respective best efforts to settle such dispute. To this effect, they
shall consult and negotiate with each other in good faith to reach a just and
equitable solution satisfactory to both parties or, at the request of either
party, the dispute shall be referred to non-binding mediation by a mediator
mutually agreed by the parties. If the parties do not reach a solution or agree
to the solution resulting from the non-binding mediation within 30 days of the
commencement of consultation, negotiation or non-binding mediation, whichever is
earlier, then upon notice by one party to the other, the dispute shall be
finally settled by arbitration pursuant to the provisions of the American
Arbitration Association, as the same may be amended, supplemented or replaced
from time to time before or after the date of this Agreement. For greater
certainty, National Rules for the resolution of Employment Disputes of the
American Arbitration Association shall be used in any such arbitration.

         (b) The arbitration tribunal shall consist of one arbitrator appointed
by the mutual agreement of the parties or, in the event of failure to so agree
within 30 days of notice by either party pursuant to Section 12(a), the
arbitrator will be appointed in accordance with, and shall meet the
qualifications under, the National Rules for the resolution of Employment
Disputes of the American Arbitration Association.

         (c) The arbitrator shall be instructed that time is of the essence in
proceeding with his determination of any dispute.

         (d) The arbitration shall be conducted in New York City, New York, on
such procedural basis as the arbitrator may determine.

         (e) The arbitration award shall be given in writing, shall be final and
binding on the parties and not subject to review or appeal for any reason
whatsoever and shall deal with the question of costs of the arbitration and all
matters relating thereto.

13.      Miscellaneous

         (a) Notices. Any notice required or permitted to be given hereunder
shall be sufficiently given if delivered personally or mailed by pre-paid
registered mail addressed to

                                       10

<PAGE>

TrizecHahn at BCE Place, 181 Bay Street, Suite 3900, Toronto, Ontario M5J 2T3,
Attention: General Counsel, or to the Executive at the executive offices of
TrizecHahn in the New York City or at his last place of residence contained in
the records of TrizecHahn. Any such notice, if delivered, shall be deemed to
have been given upon its delivery and if mailed as aforesaid, shall be deemed to
have been given on the fourth business day following the date of mailing. Any
party hereto may change its address for notice by notice given to each party
hereto in accordance with the foregoing.

         (b) Time of Essence. Time shall be of the essence of this Agreement and
of every provision hereof.

         (c) Divisions and Headings. The division of this Agreement into
Articles, Sections and clauses and the insertion of headings are for convenience
of reference only and shall not affect the construction or interpretation
hereof.

         (d) Gender and Number. In this Agreement, unless the context otherwise
requires, words importing the singular include the plural and vice versa and
words importing gender include all genders.

         (e) Severability. The invalidity or unenforceability of any provision
or part of any provision of this Agreement shall not affect the validity or
enforceability of any other provision or part thereof and any such invalid or
unenforceable provision or part thereof shall be deemed to be severable, and no
provision or part thereof shall be deemed dependent upon any other provision or
part thereof unless expressly provided for herein.

         (f) Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto pertaining to the subject matter hereof and
supersedes all prior discussions, understandings and arrangements between the
parties in respect thereof. No amendment, waiver or termination of this
Agreement shall be binding unless executed in writing by each party to be bound
thereby. No waiver of any provision of this Agreement shall be deemed to or
shall constitute a waiver of any other provision and no such waiver shall
constitute a continuing waiver unless otherwise expressly provided.

         (g) Successors and Assigns. This Agreement shall not be assignable by
any of the parties hereto without the prior written consent of each other party,
but subject thereto shall enure to the benefit of and be binding upon the
parties hereto and their respective legal personal representatives, successors
and assigns.

         (h) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Province of Ontario and the laws of Canada
applicable therein.

                                       11

<PAGE>

         IN WITNESS WHEREOF the parties hereto have executed this Agreement as
of the date first above written.

SIGNED, SEALED AND DELIVERED        )
         in the presence of         )
                                    )
/s/ Tricia Neylan                   )          /s/ Gregory F. Hanson
---------------------------------              ---------------------------------
                                    )          GREGORY F. HANSON

                                               TRIZECHAHN CORPORATION

                                               by /s/ Christopher Mackenzie
                                                  -------------------------
                                                  Christopher Mackenzie
                                                  Chief Executive Officer

                                       12

<PAGE>

                                   SCHEDULE A

             Termination Following Change in Control of TrizecHahn

1.   As used in this Schedule, the following terms have the following meanings:

     (a)  "Board" means the board of directors of TrizecHahn;

     (b)  "Change in Control" means:

          (i) the date upon which the following three conditions shall have been
satisfied:

              (A)  the MVS shall have been converted into SVS in accordance with
                   their terms (the "Conversion");

              (B)  a person or group (other than Mr. Peter Munk) holds shares
                   and/or other securities which, directly or after conversion,
                   exercise or exchange thereof, would entitle the holders
                   thereof to cast 20% or more of the votes attached to the
                   outstanding Voting Shares; and

              (C)  a change in the composition of the Board within two years
                   after the date of Conversion such that the directors of
                   TrizecHahn in office immediately before the date of
                   Conversion cease to constitute a majority of the Board; or

          (ii) the date upon which the following two conditions shall have been
satisfied:

              (A)  the Conversion shall have occurred, and

              (B)  a person or group (other than Mr. Peter Munk) holds shares
                   and/or other securities which, directly or after conversion,
                   exercise or exchange thereof, would entitle the holders
                   thereof to cast 35% or more of the votes attached to the
                   outstanding Voting Shares; or

          (iii) the date upon which the following two conditions shall have been
satisfied:

              (A)  a majority of the MVS are beneficially owned, or control or
                   direction is exercised over a majority of the MVS, by any
                   person or group, other than Mr. Peter Munk or a member of his
                   immediate family ("Change in Ownership"); and

              (B)  there is a change in the composition of the Board within two
                   years after the date of the Change in Ownership such that the
                   directors of TrizecHahn in office immediately before the date
                   of the Change in Ownership cease to constitute a majority of
                   the Board; or

                                      A-1

<PAGE>

          (iv) the date upon which the following two conditions shall have been
satisfied:

              (A)  the shareholders of TrizecHahn shall have approved (1) an
                   amalgamation or merger of TrizecHahn with any other
                   corporation (other than a direct or indirect subsidiary), (2)
                   any other business combination or consolidation; (3) a plan
                   for the liquidation of TrizecHahn, or (4) an agreement for
                   the sale or disposition of all or substantially all of the
                   assets of TrizecHahn (any one of which is hereinafter
                   referred to as a "Corporate Reorganization"); and

              (B)  within two years following a Corporate Reorganization, a
                   majority of the Board of the amalgamated or merged entity or
                   successor entity into which TrizecHahn was liquidated or
                   which acquired substantially all of the assets of TrizecHahn
                   is not comprised of individuals who were directors of
                   TrizecHahn immediately before the Corporate Reorganization;
                   or

          (v) the date upon which the following two conditions shall have been
satisfied:

              (A)  either of the Conversion, a Change in Ownership or a
                   Corporate Reorganization shall have occurred; and

              (B)  a person other than Christopher Mackenzie is appointed as
                   Chief Executive Officer of the amalgamated or merged entity
                   or successor entity into which TrizecHahn was liquidated or
                   which acquired substantially all of its assets (provided,
                   however, that if Christopher Mackenzie is offered such
                   appointment but declines to accept it, it is acknowledged and
                   agreed that no Change in Control shall have occurred); or

          (vi) the date upon which Mr. Christopher Mackenzie ceases to be the
Chief Executive Officer of TrizecHahn for any reason other than the voluntary
termination of such employment by Mr. Mackenzie;

     (c) "ZVIVS" means the outstanding Multiple Voting Shares in the capital of
TrizecHahn at any time;

     (d) "person" includes, without limitation, an individual, corporation,
partnership, joint venture, association, trust, firm, unincorporated
organization or other legal or business entity;

     (e) "SVS" means the outstanding Subordinate Voting Shares in the capital of
TrizecHahn at any time; and

                                     A-2

<PAGE>

     (f) "Voting Shares" means any security of TrizecHahn carrying a right to
vote for the election of directors of TrizecHahn under all circumstances or
under circumstances that have occurred and are continuing.

2.   At any time during the period commencing on the date that is three months
following a Change in Control and ending on the date that is nine months
following a Change in Control, the Executive shall have the right to terminate
his employment with TrizecHahn at his sole discretion by providing notice in
writing to that effect to TrizecHahn. In that event, the Executive shall be
entitled to receive the payments, benefits and other rights outlined in Sections
10(g) and 10(h) of the annexed Agreement.

                                     A-3

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