CREATE PROCEDURE gp_Test()
    NOT DETERMINISTIC
    SQL SECURITY DEFINER
BEGIN
DECLARE xDone INTEGER DEFAULT  0 ;
DECLARE CURSOR ... ;
DECLARE CONTINUE HANDLER FOR NOT FOUND SET xDone= 1 ;
  SELECT ID
  FROM docms
  WHERE ID= 1 ;/*Такого ключа нет в табличке!!!*/
  SET @xDone=xDone;/*а хендлер уже содержит 1 !!!*/
END;

CREATE PROCEDURE `gp_Test`(OUT oDone INTEGER)
    NOT DETERMINISTIC
    SQL SECURITY DEFINER
    COMMENT ''
BEGIN
 DECLARE xDone INTEGER DEFAULT  0 ;
 DECLARE xID INTEGER;
 /*DECLARE xcur CURSOR FOR
   SELECT ID
   FROM t1;*/
 DECLARE CONTINUE HANDLER FOR NOT FOUND SET xDone= 1 ;
 
 SELECT ID
 INTO xID
 FROM t1
 WHERE ID= 1 ;/*В таблице пусто*/
 SET oDone=xDone;
END;

CALL gp_Test(@Done);
SELECT @Done;