IMAGIS TECHNOLOGIES INC
10QSB, EX-2, 2000-11-14
COMPUTER INTEGRATED SYSTEMS DESIGN
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EXHIBIT 10.2

                                            GPC Communications






                                            August 15, 2000

                                 Sandra E. Buschau
                                 Director and Corporate Secretary
                                 IMAGIS Technologies Inc.
                                 1300 - 1075 West Georgia Street
                                 Vancouver BC
                                 V6E 3C9

                                 Dear Ms Buschau:

                                 This letter will serve as the agreement between GPC Communications, a
                                 division of GPC Canada Inc. ("GPC") and IMAGIS Technologies Inc.,
                                 ("Client") pursuant to which GPC will serve the client as one of its public
                                 relations/public affairs agencies.

                                 1.0     PUBLIC RELATIONS/PUBLIC AFFAIRS SERVICES

                                 We will develop for your approval, and implement a program designed to
                                 achieve your public relations and public affairs objectives. We will provide
                                 professional counselling and staff services as required to carry out these
                                 objectives. (See attached description of our proposed services.)

                                 2.0     MUTUAL COOPERATION

                                 We agree to use our best efforts to make your public relations program
                                 successful. You agree to aid us in doing so by making available to us needed
                                 information pertaining to your business and to cooperate with us in expediting
                                 the work.



                                 GPC Communications

                                 3.0     CHARGES FOR SERVICES PERFORMED

                                 The terms of GPC's compensation are outlined in the Addendum.

                                            3.1     Out-of-pocket Disbursements

                                            Routine out-of-pocket disbursements such as long distance telephone
                                            charges, travel, meals, faxes and photocopies, subscriptions and
                                            supplies, postage, faxes and courier distribution charges will be billed
                                            monthly at GPC's cost.

                                            3.2     Standard Markup

                                            GPC charges a markup of 20 per cent for out-of-pocket expenses
                                            involving third party vendors performing work on your behalf, but paid
                                            through GPC. Such expenses could include, but are not limited to,
                                            photography, printing, production, design, room or equipment rentals.

                                            3.3 Approval of expenditures

                                            We agree to secure your approval of fees and expenditures in connection
                                            with your projects and activities before undertaking those projects and
                                            activities.

                                 4.0     TERMS OF PAYMENT

                                 We will submit invoices as outlined in the Addendum.

                                            4.1     Client agreement to pay

                                            You agree to pay our invoices upon receipt. In the event payment is not
                                            made in a timely manner, GPC will be entitled to charge you a late
                                            payment penalty of two (2) per cent per month on any overdue and
                                            unpaid balance.

                                            4.2     Collection costs

                                            In the event that we incur costs, disbursements and/or legal fees in an
                                            effort to collect our invoices, you agree to reimburse us for these
                                            expenses.



                                 GPC Communications

                                 5.0     CANCELLATION OF PLANS

                                 You have the right to modify, reject, cancel or stop any and all plans or work in
                                 process, however, you agree to reimburse us for all liabilities and expenses we
                                 incurred prior,to your change in instructions, and which relate to non-
                                 cancelable commitments and to indemnify us for any liability relating to such
                                 action. We agree to use our best efforts to minimize such liabilities and
                                 expenses.

                                 6.0 RESPONSIBILITIES OF AGENCY AND CLIENT

                                            6.1 Agency Responsibility for Releases

                                            We shall obtain releases, licenses, permits or other authorization to use
                                            testimonials, copyrighted materials, photographs, art work or any other
                                            property or rights belonging to third parties obtained by us for use in
                                            performing services to you.

                                            6.2 Client Responsibility for Releases

                                            You shall obtain releases, licenses, permits or other authorization to use
                                            testimonials, copyrighted materials, photographs, art work or any other
                                            property or rights belonging to third parties obtained by you which are
                                            used in performing services by you.

                                            6.3 Client Responsibility for Accuracy

                                            You shall be responsible for the accuracy, completeness and propriety of
                                            information concerning your products and services which you furnish to
                                            us verbally or in writing in connection with the performance of this agreement.

                                            6.4 Client Responsibility for Agency's Litigation-Related Activities

                                            From time to time, GPC may be called upon to respond to or assist you
                                            in connection with litigation commenced or threatened against you (for
                                            example, in responding to a document subpoena). It is understood that
                                            GPC will be entitled to staff time charges and reimbursement of
                                            expenses for services rendered to you or time spent by GPC personnel in
                                            connection with such matters. This provision shall survive the expiration
                                            or earlier termination of this agreement.



                                 GPC Communications

                                 7.0 CONFIDENTIALITY

                                 GPC acknowledges its responsibility, both during and after the term of its
                                 appointment, to use all reasonable efforts to preserve the confidentiality of any
                                 proprietary or, confidential information or data developed by GPC on behalf of
                                 Client or disclosed by Client to GPC. Notwithstanding the above, GPC's
                                 obligation to maintain the confidentiality of any such information that it
                                 maintains in its possession or control shall not extend to information already in
                                 the public domain or that GPC must disclose by order of law and said
                                 obligation shall cease on the first anniversary of the termination of the
                                 agreement.

                                 8.0 INDEMNITY

                                 It is acknowledged that GPC cannot undertake to verify facts supplied to it by
                                 Client or factual matters included in material prepared by GPC and approved
                                 by Client. Accordingly, Client agrees to indemnify and hold harmless GPC
                                 from and against any and all losses, claims, damages, expenses (including
                                 reasonable attorneys' fees and disbursements) or liabilities which GPC may
                                 incur (i) as a result of any materials, releases, reports or information supplied to
                                 GPC by or on behalf of Client or prepared by GPC and approved by Client
                                 prior to its dissemination or broadcast; and (ii) except when attributable to
                                 GPC's failure to use due care, resulting from disputes between GPC and third
                                 parties related to and/or within the scope of this agreement. Client shall
                                 similarly indemnify and hold GPC harmless in respect to any damages arising
                                 out of the nature or use of Client's products or services. This provision shall
                                 survive the expiration or earlier termination of this agreement.

                                 9.0      MISLEADING PUBLIC RELATIONS

                                 Nothing contained in this agreement shall be deemed to require that we
                                 undertake any campaign, or prepare any public relations material or publicity,
                                 which, in our judgment, would be misleading, indecent, libelous, unlawful, or
                                 otherwise prejudicial to your interests or to ours.

                                 10.0     TERM AND TERMINATION

                                            10.1 Period of Agreement and Notice of Termination

                                            This agreement shall become effective upon signing and shall continue
                                            until terminated by 60 days notice in writing given by either party to the
                                            other.



GPC Communications

                                            10.2 Payment of Purchase and Work Done

                                            Any non-cancelable materials, services, etc., we have properly
                                            committed ourselves to purchase for your account (either specifically or
                                            as part of a plan), shall be paid for by you in accordance with the
                                            provisions of this agreement. We agree to use our best efforts to
                                            minimize such liabilities immediately upon notification.

                                            10.3 Materials Unpaid For

                                            If upon termination there exists any material furnished by us or any
                                            services performed by us for which you have not paid us in full, until
                                            such time as you have paid us in full you agree not to use any such
                                            materials or the product of any such services.

                                 11.0     EXAMINATION OF RECORDS

                                 You may at any time during the term of this agreement, during normal business
                                 hours, and upon at least two (2) business days notice, examine our files and
                                 records pertaining to the handling of your account only.

                                 12.0     GENERAL PROVISIONS

                                            12.1      Governing Law

                                            This agreement shall be governed and construed in accordance with the
                                            laws of the Province of British Columbia.

                                            12.2     Representations and Warranties

                                            The parties each individually represent and warrant that each has full
                                            power and authority to enter into this agreement and to perform all of
                                            their obligations hereunder without violating the legal or equitable rights
                                            of any third party.

                                            12.3     Notices

                                            Written notices pertaining to this agreement by either party to the other
                                            party shall be deemed given five (5) business days from the date of
                                            postmark and mailed, postage prepaid, to the address specified above.



GPC Communications


                                            12.4     Assignment

                                            Neither party shall assign, transfer or delegate its responsibilities herein
                                            to any third party without the prior written consent of the other
                                            hereto.

                                            12.5     Amendments

                                            Neither this agreement nor any of the terms or conditions hereof may be
                                            waived, amended or modified except by means of a written instrument
                                            duly executed by both parties.

                                            12.6     Captions and Headings

                                            The captions and section headings used in this agreement are
                                            for convenience of reference only and shall not affect the construction or
                                            interpretation of this agreement or any of the provisions hereof.

                                            12.7     Successors and Assigns

                                            This agreement shall be binding upon and shall inure to the benefit of
                                            the parties hereto and their respective heirs, executors, administrators,
                                            personal representatives, successors and permitted assigns.

                                            12.8     Entire Agreement

                                            Except as otherwise set forth or referred to in this agreement, this
                                            agreement constitutes the sole and entire agreement and understanding
                                            between the parties hereto as to the subject matter hereof, and
                                            supersedes all prior discussions, agreements and understandings of every
                                            kind and nature between them as to such subject matter.

                                 13.0     REPRESENTATION OF CLIENT

                                            13.1     Authorization to Sign Contract

                                            IMAGIS Technologies Inc. represents that the undersigned is authorized
                                            to execute this Public Relations/Public Affairs agreement and the
                                            Addendum attached hereto on its behalf.



                                 GPC Communications

                                 If you are in agreement with the foregoing, please sign both copies of this letter
                                 in the space provided for that purpose below and return one copy to GPC for
                                 our records.

                                 Sincerely,

                                 GPC COMMUNICATIONS, A DIVISION OF GPC CANADA INC.


                                 By:     /s/ Colleen Savage
                                           Colleen Savage
                                 Title:   Vice President and General Manager
                                 Date:  15 August 2000

                                 ACCEPTED AND AGREED:

                                 IMAGIS TECHNOLOGIES INC.

                                 By:     /s/ Sandra Buschau
                                           Sandra Buschau
                                 Title:   Director and Corporate Secretary
                                 Date:  15 August 2000



FINANCIAL ADDENDUM
IMAGIS Technologies Inc.

                                 This Financial Addendum accompanies the Agreement between IMAGIS
                                 Technologies Inc. ("Client") and GPC Communications, a division of GPC
                                 Canada Inc. ("GPC") in which GPC agrees to provide public relations and public
                                 affairs services to Client.

                                 Compensation

                                 Fees for services will be based on GPC's customary hourly rates, which shall not
                                 include out-of-pocket expenses. In the event that events escalate to the point where
                                 GPC staff are required to be available to Client on an exclusive basis for extended
                                 periods of time, we will reserve the right to negotiate billing this time at a
                                 premium over the regular hourly rate. GPC will invoice Client monthly for fees
                                 relating to work performed.

                                 Deliverables
                                            -     GPC will provide media relations services as needed:
                                                       -     beginning with an imminent corporate announcement, focussing on daily
                                                              business press in Toronto and Vancouver (fees $5,500);
                                                       -     pursuing other story lines and coverage as instructed based on our usual
                                                              hourly rates;
                                            -     GPC will research and write a brief case study ("the Pearson incident") to be
                                                   used with media relations activities (fees $2,500)

                                 As ad hoc assignments occur, GPC will either draft an additional addendum or bill
                                 at normal hourly rates. If time and circumstances prevent the signing of an
                                 addendum before the work must be completed, GPC will be entitled to bill hourly
                                 rates for tasks undertaken on an urgent verbal instruction delivered by Sandra
                                 Buschau.

                                 Accepted and Agreed:

                                 GPC Communications                                 IMAGIS Technologies Inc.
                                 a division of GPC Canada Inc.

                                 By:     /s/ Colleen Savage                             By:     /s/ Sandra Buschau
                                           Colleen Savage                                            Sandra Buschau

                                 Title:   Vice President and                            Title:   Director and
                                            General Manager                                        Corporate Secretary

                                  Date:  August 15, 2000                               Date:  August 16, 2000


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