Document:

Exhibit 10.4

DDS Technologies USA, Inc. Completes Equity Financing 

 

 

BOCA RATON, Fla., June 3 /PRNewswire-FirstCall/ -- DDS Technologies USA, Inc.
(OTC Bulletin Board: DDSU), 
http://www.ddstechusa.com, today
announced it has completed a financing for approximately $1.6 million through
the private placement of 490,000 units at a premium price of $3.30 per unit.

Each unit consists of one share of restricted common stock and a warrant
toward the purchase of an additional share for a three-year period. Under the
terms of the placement, each unit holder will be entitled to one additional
share of common stock by exercising one warrant at the exercise price of $3.75.
In connection with the transaction, the Company has agreed to file a shelf
registration statement with the SEC and to cause it to be effective within 150
days to permit the purchasers to publicly resell the purchased securities at
their discretion.

Participants in the private placement financing include James R. von der
Heydt, Chairman of the Board of DDS, and Leo Paul Koulos and Robert Rosen, both
board members.

Spencer L. Sterling, DDS President and CEO said, "These proceeds enhance our
financial strength and ability to capitalize on the opportunities of our
technology in a broad array of industries and to generate future growth."

The Shemano Group, a leading San Francisco-based investment banking and
institutional broker/dealer firm which serves as DDS' financial advisor and
investment banker facilitated the financing and private placement.

ABOUT DDS TECHNOLOGIES

DDS Technologies USA, Inc. holds the rights to a revolutionary processing
technology which maximizes the net output of a broad spectrum of agricultural
products.

The Company's new DDS System utilizes a new longitudinal micrometric
separator, along with other technologies, to separate various fractions
(proteins, fiber, starch, etc.) and converts processing waste streams into value
added products for further processing or resale.

The DDS System is a unique process whereby fragments of organic and inorganic
matter are "crushed to collision" through violent accelerations and
decelerations causing the disaggregation of the structure. As part of the
process, the matter is separated into the various fractions contained therein.

DDS Technologies USA, Inc. is a development stage company, which holds the
exclusive license for the DDS dry disaggregation system in North America, South
America, Central America, the Caribbean (excluding Cuba) and Africa.

Certain statements in this news release that involve expectations or
intentions (such as those relating to future deployments or planned operations)
may constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The information in this press release
is based on current expectations and assumptions, and is subject to a number of
risks and uncertainties that could cause actual results to differ materially
from those anticipated. Such risks include, among others, general business and
economic conditions, competitive actions, continued acceptance of products and
services and dependence on third party performance as well as the risks and
uncertainties referred to in DDS Technologies USA's current filings with the
Securities and Exchange Commissions. The reader should not place undue reliance
on such forward-looking statements. DDS Technologies USA does not assume any
obligation to update such forward-looking statements.

	CONTACT:	 
	Spencer L. Sterling, President & CEO

                        	Carl Hymans
	DDS
                        Technologies USA, Inc.

                        	G. S.
                        Schwartz & Co.
	
                        561-750-4450

                        	
                        212-725-4500 ext. 310
	 	carlh@schwartz.com<PAGE>
                                                                     EXHIBIT 4.3

                        EMPLOYMENT AGREEMENT - J.H. DOMAN

                              EMPLOYMENT AGREEMENT

THIS AGREEMENT is dated for reference October 23, 2002,

BETWEEN:

                  RICK DOMAN, of 768 Frayne Road,
                  R. R. #1, Mill Bay, British Columbia, V0R 2P0

                  (the "Executive")

AND

                  DOMAN INDUSTRIES LTD.

                  (the "Corporation"), having its registered office at 1000
                  Cathedral Place, Vancouver, British Columbia

WHEREAS:

A.       The Corporation is engaged in the business of integrated forestry
         operations, including logging, sawmilling, and the production of both
         kraft and dissolving pulp (collectively the "Business");

B.       The Executive has served as the President and Chief Executive Officer
         of the Corporation since February 1, 2001 and prior to such date served
         in other capacities with the Corporation since January 10, 1982; and

C.       The Corporation wishes to enter into this Agreement for the continuing
         employment of the Executive as President and Chief Executive Officer;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the
representations, warranties, covenants and agreements hereinafter contained and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto covenant and agree as follows:

1.       NATURE OF AGREEMENT

1.1      POSITION

         The Corporation shall continue to employ the Executive as President and
         Chief Executive Officer, and the Executive agrees to continue with the
         Corporation in such capacity, all upon and subject to the terms and
         conditions of this Agreement.

1.2      DUTIES AND FUNCTIONS

         The Executive shall be responsible to and shall report to the Board of
         Directors of the Corporation (the "Board"). The Board may vary the
         conditions, duties and services provided by the Executive from time to
         time according to the operational and other needs of the Business,
         provided that his duties will continue to reasonably reflect the
         responsibilities conferred by this Agreement. The Corporation expects
         the Executive to produce timely and good quality work, acting in a
         competent, trustworthy and loyal manner. The Executive agrees to carry
         out, using his reasonable best efforts and in a manner that will
         promote the interests of the Business, such duties and functions as the
         Board may request from time to time. The parties

<PAGE>
                                      -16-

         acknowledge that the Corporation has heretofore established committees
         that have assumed primary responsibility for some of the above duties,
         responsibilities and functions.

1.3      TERM OF AGREEMENT

         The term of this Agreement shall commence on October 23, 2002, and
         shall remain in force until this Agreement is terminated pursuant to
         Article 3 hereof.

1.4      FULL TIME POSITION

         Unless prevented by ill health, the Executive shall, during the Term,
         devote his full business time and his care and attention to the
         Business.

1.5      GOOD FAITH

         The Executive shall well and faithfully serve the Corporation and use
         his reasonable best efforts to promote its interests.

1.6      SECURITIES LAWS

         The Executive acknowledges that the Corporation is a public company
         whose shares are or listed for trading on the TSX Venture Exchange. The
         Executive shall not knowingly breach and shall use his reasonable best
         efforts to abide by and comply with all securities laws, regulations
         and rules and all stock exchange rules and policies as may be
         applicable. The Executive acknowledges that his failure to comply with
         this section 1.6 will constitute just cause for immediate termination
         pursuant to section 3.5 hereof. In his efforts to abide by and comply
         with securities laws, regulations and rules and stock exchange rules
         and policies, the Executive shall be entitled to rely on advice from
         professional advisors and experts.

2.       REMUNERATION AND BENEFITS

2.1      BASE SALARY

         The Corporation will pay to the Executive, in 24 equal instalments
         payable semi-monthly in arrears, an aggregate annual salary of
         $225,000.00 (the "Annual Base Salary") or such other amount as may be
         agreed upon pursuant to section 2.2, less such deductions which shall
         be made by the Corporation in respect of statutory remittances,
         including, without limitation, deductions for Income Tax, Canada
         Pension Plan premiums and Employment Insurance premiums.

2.2      REVIEW

         The Corporation will annually review the performance of the Executive
         and the amount of the Annual Base Salary provided hereunder and such
         amount determined by the Corporation shall not be less than the
         Executive's Annual Base Salary for the immediately preceding year.

         2.2.1    On or before January 31st of each year (commencing in 2003),
                  the Corporation will annually review the performance of the
                  Executive and the amount of the Annual Base Salary provided
                  hereunder and such amount determined by the Corporation shall
                  be retroactive to January 1st, and shall not be less than the
                  Executive's Annual Base Salary for the immediately preceding
                  year.

         2.2.2    The Annual Base Salary of the Executive commencing January 1,
                  2003, shall be adjusted upwards to forest industry standards
                  as set out in the report of Mercer Human Resources Consulting
                  (the "Mercer Report"), a copy of which is attached as Schedule
                  "A" to this Agreement.

<PAGE>
                                      -17-

2.3      BONUS

         The Executive shall be eligible to receive an annual discretionary
         bonus based upon the performance of the Executive and that of the
         Corporation, which bonus shall be satisfactory to both the Corporation
         and the Executive and if not mutually satisfactory, then the amount of
         the bonus shall be based on forest industry standards and shall be
         decided by Mercer Human Resources Consulting, or someone chosen by them
         as a replacement, and whose decision shall be final and binding on both
         the Corporation and the Executive.

2.4      BENEFITS

         The Executive shall receive the following additional benefits during
         the tenure of this Agreement:

         2.4.1    Continued participation in the Corporation's benefit program
                  generally made available to salaried head office employees of
                  the Corporation;

         2.4.2    Continued participation in the Corporation's defined
                  contribution pension plan and supplemental pension plan;

         2.4.3    Entitlement to participate in the incentive stock or other
                  equity option plan (the "Option Plan") made available to
                  officers, directors or employees of the Corporation, so that
                  when and if options are granted thereunder to employees and/or
                  officers, the Executive shall receive options in an amount
                  consistent with his position as President and Chief Executive
                  Officer. Subject to compliance with all applicable securities
                  laws, regulations, rules and policies and all rules or
                  policies of all applicable stock exchanges, the right to
                  receive options pursuant to the Option Plan may, with the
                  prior consent of the Corporation (not to be unreasonably
                  withheld), be transferred to and from the Executive and a
                  family trust established by the Executive. The Executive
                  acknowledges that neither the Corporation or any of its
                  employees, officers, agents, associates or affiliates have
                  provided him with any tax or financial advice in respect of
                  the foregoing; and

         2.4.4    Continued entitlement to an automobile of comparative status
                  to the one currently provided and continuation of expenses
                  related to its use.

2.5      VACATION

         The Executive shall be entitled each year to six (6) weeks of paid
         vacation, prorated for any partial year. Vacation time shall be taken
         by the Executive at such times so as to minimize the disruption to the
         Business. In the event that any vacation time shall not be taken by the
         Executive during any given year at the request of the Corporation, the
         Corporation will compensate the Executive for any such unused vacation
         within thirty days of the end of the given year. For greater certainty,
         the Executive shall not be entitled to carry over any unused vacation
         time into any subsequent year or years during the Term without the
         prior written approval of the Governance and Compensation Committee. In
         the event that the Executive has any unused vacation time upon the
         termination of the Executive's employment or at the conclusion of the
         Term, the Executive shall be entitled to be compensated for such unused
         vacation time.

2.6      EXPENSES

         The Corporation further agrees that it will reimburse the Executive for
         all reasonable and properly documented expenses related to the
         discharge of the Executive's duties under this Agreement.

2.7      INDEMNIFICATION

         Subject to any applicable laws respecting indemnification of corporate
         officers, the Corporation agrees to indemnify the Executive in any
         threatened, pending or completed suit or proceeding, whether civil,
         criminal, administrative or investigative (other than an action by or
         in the right of the Corporation) by reason of the fact that the
         Executive is or was a director, officer, employee or agent of the
         Corporation, or is or was serving at the request of the Corporation as
         a director, officer, employee or agent of another

<PAGE>
                                      -18-

         corporation, partnership, joint venture, trust or other enterprise,
         against expenses (including attorney's fees), judgements, fines and
         amounts paid in settlement actually and reasonably incurred by the
         Executive and reasonably approved by the Corporation in connection with
         such action, suit or proceeding if the Executive acted in good faith
         and in a manner not opposed to the best interests of the Corporation
         and, with respect to any criminal action or proceeding, had no
         reasonable cause to believe the Executive's conduct was unlawful. The
         termination of any action, suit or proceeding by judgement, order,
         settlement, or conviction, shall not, of itself, create a presumption
         that the Executive did not act in good faith and in a manner not
         opposed to the best interests of the Corporation and, with respect to
         any criminal action or proceeding, had reasonable cause to believe that
         the Executive's conduct was unlawful. Expenses incurred in defending or
         investigating a threatened or pending action, suit or proceeding shall
         be paid by the Corporation in advance of the final disposition of such
         action, suit or proceeding upon receipt of an undertaking by or on
         behalf of the Executive to repay such amount if it shall ultimately be
         determined that the Executive is not entitled to be indemnified by the
         Corporation.

3.       TERMINATION OF EMPLOYMENT

3.1      TERMINATION BY EXECUTIVE

         The Executive may terminate this Agreement upon giving the Corporation
         three months prior written notice of the effective date of his
         resignation. On receiving such notice, the Corporation may elect to pay
         the Executive in lieu of working the notice period, in which case the
         termination will be effective immediately.

3.2      TERMINATION BY THE EMPLOYER

         The Corporation may terminate this Agreement at any time, without
         cause.

3.3      TERMINATION FOR PERMANENT DISABILITY

         The Corporation may terminate this Agreement for permanent disability
         of the Executive without notice. "Permanent disability" shall mean any
         physical or mental incapacity, disease or affliction, as determined by
         a legally qualified medical practitioner selected by the Corporation,
         which: (i) prevents the Executive, to a substantial degree, from
         performing his obligations hereunder as an executive officer of the
         Corporation; and (ii) has existed for either a continuous period of 120
         days or a total of 180 days in any period of 365 consecutive days.

3.4      TERMINATION ON DEATH

         This Agreement shall automatically terminate without notice upon the
         death of the Executive.

3.5      TERMINATION FOR CAUSE

         The Corporation may terminate this Agreement for Cause without notice.
         "Cause" shall consist of any event or circumstance that would
         constitute cause for termination of employment at law or a breach of
         section 1.6 hereof.

3.6      COMPENSATION ON TERMINATION

         On termination of this Agreement under 3.1, 3.2, 3.3, 3.4, or 3.5, the
         Corporation shall pay the Executive (or the Executive's estate if
         termination is under 3.4):

         3.6.1    an amount equal to twice the Annual Base Salary;

         3.6.2    any accrued vacation up to and including for the notice period
                  in accordance with section 2.5;

<PAGE>
                                      -19-

         3.6.3    any expense reimbursement amounts accrued to the effective
                  date of termination in accordance with section 2.6;

         3.6.4    a good faith and reasonable estimate of any bonus to which the
                  Executive would have been entitled for the notice period
                  pursuant to section 2.3;

         3.6.5    any option rights under 2.4.3; and

         3.6.6    vehicle entitlement as per 2.4.4 for twenty-four months
                  following termination.

3.7      FIDUCIARY DUTY

         The Executive acknowledges that his is a position of authority and
         responsibility with the Corporation and as such he has and will
         continue to acquire and develop unique and valuable contacts, skills
         and talents during the term of this Agreement. Accordingly, upon
         termination of this Agreement, for whatever reason, the Employee agrees
         to conduct himself in such manner as will not breach any fiduciary or
         other duty he owes to the Corporation.

4.       CONFIDENTIALITY AND INTELLECTUAL PROPERTY

4.1      CONFIDENTIALITY

         The Executive understands and agrees that, in the performance of the
         Executive's obligations under this Agreement, the Executive has
         obtained and will obtain further knowledge of Confidential Information
         (as defined in section 4.2) relating to the Business, or the affairs of
         the Corporation (or any of its subsidiary or affiliated companies). The
         Executive agrees that the Executive shall not, without the prior
         written consent of the Board, either before or after termination of
         this Agreement:

         4.1.1    use or disclose any Confidential Information outside of the
                  Corporation (or any of its subsidiary or affiliated companies)
                  for any use or purpose other than those of the Business;

         4.1.2    publish any article with respect thereto that discloses
                  Confidential Information; and

         4.1.3    except in providing the Services, remove or aid in the removal
                  from the premises of the Business any Confidential Information
                  or any property or material relating thereto.

4.2      DEFINITION OF CONFIDENTIAL INFORMATION

         In this Agreement, "Confidential Information" means any information or
         knowledge including without limitation, any formula, pattern, design,
         system, program, device, software, plan, budgets, costs, customer
         information, results of operations, process, know how, research,
         discovery, strategy, method, idea or compilation of information that:
         (i) relates to the Business or the affairs of the Corporation (or any
         of its subsidiary or affiliated companies) or to any inventions or
         results from its or their research and/or development activities; (ii)
         is private or confidential in that it is not generally known or
         available to the public; or (iii) gives or would give the Corporation
         (or any of its subsidiary or affiliated companies) an opportunity to
         obtain an advantage over competitors who do not know of or use it, but
         in any event does not include any information which (i) is public
         knowledge other than as a result of disclosure by the Executive, or
         (ii) is required to be disclosed pursuant to any valid court order, in
         which case the Executive shall notify the Corporation immediately of
         any such court order in order to enable the Corporation to contest such
         order's validity.

4.3      COPYRIGHTS

         The Executive assigns to the Corporation all copyrights and similar
         rights in all works created by the Executive in whole or in part in the
         course of rendering Services hereunder.

<PAGE>
                                      -20-

4.4      COMPLIANCE WITH POLICIES

         The Executive shall abide by and carry out all policies of the
         Corporation placed in effect to establish and protect the Confidential
         Information.

4.5      INJUNCTIVE RELIEF

         The Executive acknowledges that any unauthorized disclosure or use of
         Confidential Information by the Executive may result in material
         damages to the Business or the Corporation and consents to the issuance
         of an injunction or other equitable remedy to prohibit, prevent or
         enjoin unauthorized disclosure or use of Confidential Information by
         the Executive.

4.6      SURVIVAL OF OBLIGATION OF CONFIDENCE

         The obligation respecting confidentiality set out in this Article 4
         shall survive termination of this Agreement for a period of five years
         after termination of this Agreement.

5.       CONFLICT OF INTEREST

5.1      DISCLOSURE OF CONFLICTS OF INTEREST

         The Executive shall promptly, fully and frankly disclose to the
         Corporation in writing:

         5.1.1    the nature and extent of any interest the Executive, or any of
                  his Associates, has or may have, directly or indirectly, in
                  any contract or transaction or proposed contract or
                  transaction of or with the Corporation or any of its
                  subsidiaries or the Business;

         5.1.2    every office the Executive, or any of his Associates, may hold
                  or acquire, and every property the Executive or any of his
                  Associates, may possess or acquire, whereby directly or
                  indirectly a duty or interest might be created in conflict
                  with the interests of the Corporation or the Business or the
                  duties and obligations of the Executive under this Agreement;
                  and

         5.1.3    the nature and extent of any conflict referred to in Paragraph
                  5.1.2 above.

         In this Agreement, the expression "Associate" shall include all those
         persons and entities that are included within the definition or meaning
         of "associate" as set forth in section 2(1) of the Canada Business
         Corporations Act as amended from time to time, and shall also include
         the spouse, children, parents, brothers and sisters of the Executive.

5.2      AVOIDANCE OF CONFLICTS OF INTEREST

         The Executive shall not enter into any agreement, arrangement or
         understanding with any other person or entity that would in any way
         conflict or interfere with this Agreement or the duties and obligations
         of the Executive under this Agreement or that would otherwise prevent
         the Executive from performing the Services hereunder, and the Executive
         hereby represents and warrants that neither he nor any of his
         Associates has entered into any such agreement, arrangement or
         understanding.

6.       GENERAL

6.1      INTERPRETATION

         If the sense or context of this Agreement so requires, the singular
         number only shall include the plural and vice versa and words importing
         the masculine gender shall include the feminine and neuter genders and
         vice versa and words importing persons shall include individuals,
         partnerships, associations, trusts, unincorporated organizations and
         corporations and vice versa. In this Agreement "herein", "hereby",
         "hereunder", "hereof", "hereto" and words of similar import, refer to
         this Agreement as a whole and not to

<PAGE>
                                      -21-

         any particular section or part of this Agreement. The headings and
         captions of sections of this Agreement are inserted for convenience of
         reference only and are not to be considered when interpreting this
         Agreement. All sums of money set forth in this Agreement are expressed
         in Canadian dollars.

6.2      BENEFIT OF AGREEMENT

         This Agreement shall enure to the benefit of and be binding upon the
         heirs, executors, administrators and legal personal representatives of
         the Executive and the successors and assigns of the Corporation.

6.3      ENTIRE AGREEMENT

         This Agreement constitutes the entire agreement between the parties
         with respect to the subject matter hereof and cancels and supersedes
         any prior understandings and agreements between the parties hereto with
         respect thereto. There are no representations, warranties, forms,
         conditions, undertakings or collateral agreements, express implied or
         statutory between the parties other than as expressly set forth in this
         Agreement.

6.4      WAIVERS

         No waiver of any breach of any term or provision of this Agreement
         shall be effective or binding unless made in writing and signed by the
         party purporting to give the same and, unless otherwise provided in the
         written waiver, shall be limited to the specific breach waived.

6.5      SURVIVAL OF TERMS

         The representations, warranties, covenants, agreements, obligations and
         liabilities of the Executive under any and all of sections 3.7, 4.1,
         4.3, and 5.2 of this Agreement shall survive any expiration or
         termination of this Agreement. Any expiration or termination of this
         Agreement shall be without prejudice to any rights and obligations of
         the parties hereto arising or existing up to the effective date of such
         expiration or termination, or any remedies of the parties with respect
         thereto.

6.6      ASSIGNMENT

         It is hereby agreed that neither party hereto may assign his or its
         rights or obligations under this Agreement, in whole or in part.

6.7      SEVERABILITY

         If any provision of this Agreement is determined to be invalid or
         unenforceable in whole or in part, such invalidity or unenforceability
         shall attach only to such provision or part thereof and the remaining
         part of such provision and all other provisions hereof shall continue
         in full force and effect.

6.8      LEGAL ADVICE

         The Executive hereby represents and warrants to the Corporation and
         acknowledges and agrees that he had the opportunity to seek, was not
         prevented nor discouraged by the Corporation from seeking and did
         obtain independent legal advice prior to the execution and delivery of
         this Agreement. The Corporation shall pay or reimburse to the Executive
         for all reasonable costs and expenses incurred by the Executive in
         negotiating the terms of this Agreement.

6.9      NOTICES

         Any demand, notice or other communication under this Agreement in
         connection herewith shall be sufficiently given:

<PAGE>
                                      -22-

         6.9.1    by the Corporation to the Executive, if delivered personally
                  to the Executive, or if delivered or sent by prepaid
                  registered mail to the Executive, as the case may be, at the
                  address of the intended recipient shown on the first page of
                  this Agreement; and

         6.9.2    by the Executive to the Corporation, if delivered or sent by
                  prepaid registered mail to the Chairman of the Board of
                  Directors or any other individual empowered to receive such
                  communication by the Board.

         Any party may change their address for notices by giving notice in
         writing of such change to the other parties hereto as provided above.
         Any notice or communication shall be deemed to have been given, if
         delivered as aforesaid, when delivered, and if mailed in Canada as
         aforesaid, on the fourth business day after the date of mailing.

6.10     FURTHER ASSURANCES

         Each party must, from time to time, execute and deliver all such
         further documents and instruments and all acts and things as the other
         party may reasonably require to effectively carry out or better
         evidence or perfect the full intent and meaning of this Agreement.

6.11     LAWS AND COURTS

         This Agreement shall be governed and interpreted in accordance with the
         laws of Province of British Columbia and the laws of Canada applicable
         therein. All disputes arising under this Agreement will be referred to
         the courts of the Province of British Columbia which will have
         jurisdiction, but not exclusive jurisdiction, and each party hereto
         irrevocably submits to the non-exclusive jurisdiction of such courts.

6.12     COPY OF AGREEMENT

         The Executive hereby acknowledges receipt of a copy of this Agreement
         duly signed by the Corporation.

IN WITNESS WHEREOF this Agreement has been executed by the parties hereto as of
the day and year first above written

<Table>
<S>                                                         <C>
SIGNED, SEALED AND DELIVERED by RICK DOMAN            )
DOMAN in the presence of:                             )
                                                      )
                   "S. Patterson"                     )                          /s/ "J.H. Doman"
-----------------------------------------------------       -------------------------------------------------------
Witness                                               )     RICK DOMAN
                  Susan Patterson                     )
-----------------------------------------------------
Address                                               )
              305-1475 W. 11th Avenue                 )
-----------------------------------------------------
                                                      )
              Vancouver, B.C. V6Y 1K9                 )
-----------------------------------------------------
Occupation                                            )
              Administrative Secretary
</Table>

<PAGE>
                                      -23-

<Table>
<S>                                                           <C>
                                                              DOMAN INDUSTRIES LTD.
By:                      "H.S. Doman"
          --------------------------------------------
Name:                   /s/ H.S. Doman
          --------------------------------------------
Title:                     Chairman
          --------------------------------------------
</Table>

<PAGE>

ADDENDUM to the Employment Agreement made between RICK DOMAN (the "Executive")
and DOMAN INDUSTRIES LTD. (the "Corporation") dated for reference October 23,
2002.

Paragraph 3.1 is amended by adding the following to the end of this section:

                  "The Executive agrees not to terminate this Agreement during
                  the currency of the Company's filing under the CCAA."

Paragraph 3.6 is amended by deleting the reference to "3.5" from this section
and adding the following as paragraph 3.6.7:

                  "Notwithstanding any other section of this Agreement, the
                  Executive agrees that he shall have no entitlement to any
                  payment under 3.6.1, 3.6.4 or 3.6.6 of this section of the
                  Agreement if he terminates the Agreement pursuant to section
                  3.1 except pursuant to an agreement which may be subsequently
                  negotiated between the Executive and the Corporation as a form
                  of retiring allowance, provided that the Executive retains his
                  ability to terminate the Agreement on the basis of
                  constructive dismissal by the Corporation and to seek damages
                  in lieu of termination pay in those circumstances."

IN WITNESS WHEREOF this Addendum has been executed by the parties hereto as of
the 23rd day of October, 2002.

<Table>
<S>                                                         <C>
SIGNED, SEALED AND DELIVERED by RICK DOMAN in the   )
presence of:                                        )
                                                    )
                    "Barry Dong"                    )                   "J.H. Doman"
---------------------------------------------------       ----------------------------------------
Witness                                             )     RICK DOMAN
                  Barry Y.F. Dong                   )
---------------------------------------------------
Address                                             )
               Barrister & Solicitor                )
           Suite 2300 - 1055 Dunsmuir St.
---------------------------------------------------
                   P.O. Box 49127                   )
              Vancouver, B.C. V7X 1J1               )
---------------------------------------------------
Occupation                                          )

DOMAN INDUSTRIES LTD.

Per:                    "H.S. Doman"
      ---------------------------------------------
                    Authorized Signatory
</Table>

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