IMAGIS TECHNOLOGIES INC
EXHIBIT 10.2
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<DESCRIPTION>EXHIBIT 10.2
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<P><FONT FACE="TIMES NEW ROMAN"><b>EXHIBIT 10.2</b></P></FONT>
<P ALIGN="CENTER">July 8, 2002</P>
<P>Mr. Altaf Nazerali<BR>
Imagis Technologies Inc.<BR>
Suite 1300 - 1075 West Georgia Street<BR>
Vancouver, BC  V6E 3C9</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Letter
of Intent Regarding Brazilian Joint Venture</P></B></U>
<P>Dear Mr. Nazerali:</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This letter will serve to memorialize OSI
Systems Inc.'s (&quot;OSI&quot;) and Imagis Technologies Inc.'s
(&quot;Imagis&quot;) mutual intent to enter into a joint venture for the purpose
of establishing and operating a joint manufacturing and marketing operation in
Brazil in accordance with the following terms:</P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Company
Set-Up</U>.  OSI will establish a marketing/manufacturing office located in
Brazil for the purpose of marketing and manufacturing OSI's metal-detector and
conventional x-ray products (&quot;OSI Products&quot;), in the territory of
South America.  Establishment will include the formation of a Brazilian legal
entity (the &quot;Company&quot;), the set-up of a physical office and equipment,
and a staff sufficient to undertake or oversee Brazilian marketing, sales,
service, and assembly of OSI Products.  OSI shall provide training and know-how
necessary for such staff.  If such establishment is not accomplished within 24
months of the date of this Letter, neither party hereto shall have any further
obligations hereunder.</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Contributions</U>.  </p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OSI shall fund the Company set-up described in
Section 1.  Upon Imagis' investment in the Company, OSI shall provide the
Company, for a period of at least five years after the date of its formation,
with the rights to manufacture, market and sell OSI Products in Brazil.  The
Company shall have the right, during this period, to purchase kits for the OSI
Products, at OSI's then-current list prices (or other agreed prices), on an
ex-works basis.</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon establishment of the Brazil marketing
office, OSI shall deliver written notice to Imagis, and Imagis shall invest
$250,000 cash in the Company, and receive 20% of the equity in the Company.
Imagis shall have the right to appoint representation on the Company's governing
board constituting a percentage of such governing board at least equal to
Imagis' then-current percentage equity ownership of the Company.  To the extent
that Imagis provides the Company with the exclusive right to market and sell
Imagis' products in Brazil, the Company's rights to manufacture, market and sell
OSI Products in Brazil shall also be exclusive.</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is a goal of this relationship that Imagis
provide the Company with Brazilian contacts.  Upon Imagis' cash investment in
the Company, Imagis shall introduce the Company to one or more Brazilian
partners, whether in manufacturing, marketing or other relevant areas.</p>
<hr size="2" width="100%">
<p>Mr. Altaf Nazerali<br>
July 8, 2002<br>
Page 2</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Distribution
of Profits</U>.  Each year, the
Company shall distribute cash legally available for distribution to its equity
holders, unless the Company's governing board determines that a portion of such
cash is to be allocated to a business purpose for the benefit of the
Company.</p>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the above accurately reflects our agreement
with respect to the subject
matter hereof, please acknowledge our agreement by countersigning this Letter
where indicated below, and returning the countersigned letter to me.</P>
<dir><dir><dir><dir><dir><dir><Dir>
<P>Very truly yours,</P>
<P><U>/s/ Deepak Chopra</P></U>
<P>DEEPAK CHOPRA<br>
Chief Executive Officer</P>
</dir></dir></dir></dir></dir></dir></Dir>
<P>ACKNOWLEDGED:</P>
<P>Imagis Technologies Inc.</P>
<P>By: <U>/s/ Altaf Nazerali<br></U>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Altaf Nazerali</P>
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