EXHIBIT 4.2

THIS AGREEMENT MADE THIS 1st DAY OF AUGUST, 1996

BETWEEN:            PURE TECHNOLOGIES INC. (PURE)

                                                               OF THE FIRST PART

                                    - AND -

                    PETER O. PAULSON

                                                              OF THE SECOND PART


WHEREAS  PURE is  authorized  by the Board of Directors to carry on a variety of
functions  and   activities,   including   monitoring  of   post-tensioned   and
pre-stressed  structures,  and to employ any officer or other  employees that it
considers necessary for the conduct of its operations;

AND WHEREAS Mr.  Paulson is willing to be employed by Pure,  and Pure is willing
to employ Mr. Paulson,  on the terms,  covenants and conditions  hereinafter set
forth;

NOW THEREFORE in consideration of the mutual promises and agreements hereinafter
contained, Pure and Mr. Paulson agree as follows:

POSITION:
---------

1.01     Pure hereby agrees to employ Mr. Paulson, and Mr. Paulson hereby agrees
         to serve Pure, as President.

TERM:
-----

2.01     Employment  pursuant to this  Agreement  shall commence on September 3,
         1996 and,  subject to  termination  in accordance  with clauses 2.02 to
         2.05, shall continue for an indefinite term.

2.02     Pure may terminate this Agreement at any time:

         (a)      For  "just  cause"  (as  that   expression  is  understood  in
                  employment  jurisprudence)  or for a  material  breach of this
                  Agreement, in which event Mr. Paulson shall not be entitled to
                  any notice of termination or to any  compensation  for lack of
                  notice or for loss of salary or benefits;

<PAGE>

         (b)      Without just cause:

                  (i)      by giving  eighteen (18) months' notice in writing of
                           its intention to do so, or

                  (ii)     by payment to Mr.  Paulson of an amount  equal to Mr.
                           Paulson's   then  current  salary  for  a  period  of
                           eighteen (18) months, or

                  (iii)    by  providing  to Mr.  Paulson  any number of months'
                           notice  and number of months'  salary  which,  in the
                           aggregate, total eighteen (18) months.

2.03     In the  event  that Mr.  Paulson,  by  reason  of  illness,  injury  or
         disability, either physical or mental, should become incapacitated from
         carrying  out his  duties,  pursuant  to this  Agreement,  for a period
         greater  than  one  hundred  twenty  (120)  continuous  days,  Pure may
         terminate  this  Agreement  without any notice or  compensation  to Mr.
         Paulson,  provided that such  termination does not adversely affect Mr.
         Paulson's  entitlement  to sickness and  disability  benefits under the
         programs referred to in clause 4.01(b).

2.04     This Agreement shall automatically terminate and be deemed to have been
         frustrated upon the death of Mr. Paulson.

2.05     Mr. Paulson may terminate this Agreement at any time, and for any or no
         reason,  by giving three (3) months  notice in writing of his intention
         to do so.

DUTIES:
-------

3.01     During the  continuance  of this  Agreement  Mr.  Paulson  shall be the
         President of Pure and shall perform all lawful  duties  assigned to him
         from time to time by the Board of Directors.

3.02     Mr.  Paulson  shall  well and  faithfully  serve Pure and give his best
         efforts to the discharge of his duties under this Agreement.

3.03     Mr.  Paulson  shall  devote the whole of his time and  attention to the
         business  and  affairs of Pure and shall not,  without  the  consent in
         writing  of the Board of  Directors  engage in any  other  business  or
         occupation.

3.04     Mr. Paulson shall not at any time,  whether  during the  continuance of
         this  Agreement or after,  disclose to any person,  firm or corporation
         any information  concerning the private internal affairs of Pure or its
         subsidiaries,  associates or affiliates,  other than for the benefit of
         Pure,  and Mr.  Paulson  shall not,  either while this  Agreement is in
         force or thereafter, use any such information to the detriment of Pure.
         Upon  termination  of  this  Agreement,  all  materials,   information,
         intellectual property, and any other assets acquired or produced by Mr.
         Paulson in  connection  with the  performance  of his duties under this
         Agreement   shall  become  the  sole  property  of  Pure,  and  without
         additional  compensation  or payment,  shall  forthwith  transmit  such
         information and material to the Board of Directors.

<PAGE>

3.05     Mr.  Paulson shall abide by any Code of Conduct or Conflict of Interest
         Policy or Guideline adopted from time to time by PTI.

COMPENSATION:
-------------

4.01     Subject to clause 4.02, PTI shall pay to Mr.  Paulson,  as remuneration
         for his services under this Agreement,  an annual salary of ninety-five
         thousand nine hundred dollars ($95,900) effective upon the commencement
         of  employment  under  this  Agreement,   payable  in  equal  bi-weekly
         instalments  less  deductions  required  by  law or  authorized  by Mr.
         Paulson.

4.02     Mr. Paulson's annual salary as set out in clause 4.01 shall be reviewed
         on the first day of January in each year of the term of this  Agreement
         by the Board of Directors who may increase Mr. Paulson's annual salary.
         In such event,  the increased  annual salary shall have effect as if it
         were specifically provided for as a term of this agreement.

4.03     Pure may also pay to Mr. Paulson  annually or with respect to any other
         period, such bonus(es) as the Board of Directors may determine,  having
         regard to the value of Mr.  Paulson's  contribution  to the  success of
         Pure and Pure's performance.

4.04     In addition to the salary hereinbefore  provided for, Mr. Paulson shall
         be entitled to the following benefits and prerequisites:

         (a)      A paid  vacation of  twenty-five  (25) working days per annum.
                  The full  vacation  entitlement  must be taken  within six (6)
                  months of the date on which Mr. Paulson became entitled to it,
                  there  being no right to carry  forward  vacation  entitlement
                  from one year to the next;

         (b)      Provision by Pure of coverage for health insurance, short-term
                  and long-term illnesses and disability, and dental and medical
                  expenses.

         (c)      Subject to approval by the Board of  Directors,  reimbursement
                  for  the  cost  of  memberships  in  appropriate  professional
                  organizations;

         (d)      Stock  Options:  If  the  proposed  Major  Transaction  occurs
                  between Sextant  Enterprise Corp. (SXE) and Pure, whereby Pure
                  will become a wholly owned subsidiary of SXE, Mr. Paulson will
                  be  granted  225,000  options  of SXE on the date of the Major
                  Transaction.

<PAGE>

GENERAL PROVISIONS:
-------------------

7.01     This agreement shall not be assigned by Mr. Paulson.

7.02     This  agreement  shall be governed by and construed in accordance  with
         the laws of the Province of Alberta.


                                          PURE TECHNOLOGIES INC.



                                   Signed:  /s/ James E. Paulson
                                          ------------------------------------
                                           James E. Paulson, Chairman



Witnessed:  /s/ M B Morrison       Signed:  /s/ Peter O. Paulson
--------------------------------          ------------------------------------
                                          Peter O. Paulson