Document:

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                                                                   EXHIBIT 10.39

                 SHARED INTELLECTUAL PROPERTY LICENSE AGREEMENT

         This Shared Intellectual Property License Agreement (this "AGREEMENT"),
entered into as of this 20th day of December, 2002, by and between ULTRAK, INC.,
a corporation duly organized and existing under the laws of the State of
Delaware and having its principal place of business at Lewisville, Texas
(together with its Affiliates, hereinafter referred to as "ULTRAK" or
"LICENSOR") and PITTWAY CORPORATION, a Delaware corporation ("Licensee") and
wholly-owned subsidiary of Honeywell International Inc., a corporation duly
organized and existing under the laws of the State of Delaware and having its
principal place of business at Morristown, New Jersey ("HONEYWELL").

                                    RECITALS:

         A. Honeywell, Ultrak and certain Affiliates of Ultrak have entered into
that certain Asset Purchase Agreement dated as of August 8, 2002 (as amended to
date, the "ASSET PURCHASE AGREEMENT") pursuant to which Honeywell has agreed to
purchase, and ULTRAK has agreed to sell, on the terms and conditions set forth
in the Asset Purchase Agreement, certain business assets of Ultrak, including
Transferred Intellectual Property (as that term is defined in the Asset Purchase
Agreement), and pursuant to which Ultrak will continue to own certain Shared
Intellectual Property (as that term is defined in the Asset Purchase Agreement)

         B. As a condition to the Closing under the Asset Purchase Agreement and
the purchase by Honeywell of the business assets to be purchased thereunder, and
except as otherwise provided herein, Honeywell requires Ultrak, and Ultrak has
agreed as an inducement to Honeywell, to grant to Honeywell and its Affiliates a
license to the Shared Intellectual Property for use in any field and to provide
certain consulting services to Honeywell and its Affiliates related to
supporting the Access Control Business (as defined herein), on the terms and
conditions set forth in this Agreement.

         C. Pursuant to the terms of the Access Control Supply Agreement dated
of even date herewith between Ultrak and Licensee (the "ACCESS CONTROL SUPPLY
AGREEMENT"), Ultrak has agreed to supply Licensee with certain products which
utilize certain Shared Intellectual Property licensed under this Agreement.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties intending to be
legally bound agree as follows:

         1. Definitions. Capitalized terms used herein but otherwise not defined
herein shall have the meaning ascribed thereto in the Asset Purchase Agreement.

            a. "ACCESS CONTROL BUSINESS" shall mean the access control business
in the Non-U.S. Jurisdictions as of the Closing and any access control sales of
Licensor's access control products or systems generated by Licensee in the
Non-U.S. Jurisdictions after the Closing pursuant to this Agreement and the
Access Control Supply Agreement.

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            b. "CONSULTING SERVICES" shall mean: (1) providing personnel
resources to maintain, resolve systems problems relating to, and otherwise
support the Access Control Business; and (2) providing telephone hotline support
relating to the Access Control Business.

            c. "DERIVATIVE WORK" shall mean a "derivative work" within the
meaning of the United States Copyright Act, 17 U.S.C. Section 101 et seq. -- ---

            d. "LICENSED IP" shall mean all Shared Intellectual Property (as
that term is defined in the Asset Purchase Agreement), including without
limitation the Intellectual Property (as that term is defined in the Asset
Purchase Agreement) listed on Schedule 4.11(a)(ii) of the Asset Purchase
Agreement and all Intellectual Property associated therewith, and all
Intellectual Property rights associated with each of the Nonexclusive Third
Party License Agreements (as such agreements are defined in the Asset Purchase
Agreement and listed in Schedule 4.11(c) thereof).

         2. Grant of License; Ownership.

            a. License. Subject to the terms and conditions of this Agreement,
Licensor hereby grants to Licensee an exclusive (except as to Licensor's
exercise of all rights in the Licensed IP, including the right to license third
parties providing products or services to Licensor, subject to Section 6.11 of
the Asset Purchase Agreement), fully paid-up, perpetual, irrevocable, worldwide
license to make, sell, use, offer for sale, distribute, export, import, modify,
make improvements to, prepare Derivative Works of, reproduce, and exercise all
other rights in and to the Licensed IP in any field of use, including without
limitation, the design, manufacture, sale and distribution of products and
systems which function to acquire, transmit, route or control images and related
data in a private network (the "LICENSE").

            b. Sublicenses. Subject to the terms and conditions of this
Agreement, Licensor hereby grants to Licensee a non-exclusive, fully paid-up
sublicense of all of Licensor's rights in and to the Licensed IP licensed by
Licensor from third parties pursuant to each of the Nonexclusive Third Party
License Agreements (collectively, the "SUBLICENSES" or, individually, each a
"SUBLICENSE"). No Sublicense under a Nonexclusive Third Party License Agreement
is granted if the grant of such Sublicense would violate the Nonexclusive Third
Party License Agreement provided that Licensor shall use commercially reasonable
efforts to obtain such Sublicense prior to Closing (but shall not be required to
pay additional royalties or fees in order to obtain such Sublicense).

            c. Limited Ability to Sublicense. Licensee may sublicense any or all
of its rights under the License or in the Sublicenses to any Affiliates of
Licensee or to a successor of all or substantially all of the assets (including
by merger, stock sale, asset sale, or otherwise) of the CCTV Business or the
Business without prior written Consent of Licensor. Except as otherwise set
forth herein, neither party shall sublicense any of its rights or delegate any
of its duties under the License or Sublicenses without prior written consent of
the other party.

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            d. Ownership. As between Licensor and Licensee, Licensor shall own
all right, title and interest in and to the Licensed IP. As between Licensor and
Licensee, each party shall own the improvements and modifications it (or third
parties on its behalf) makes to, including any Derivative Works it (or third
parties on its behalf) makes of, the Licensed IP.

            e. Maintenance. Licensor, at its own expense, shall execute, file
and record all documents to maintain, preserve and renew all applications of and
registrations for any Licensed IP (except as to any Licensed IP licensed under
Nonexclusive Third Party Agreements) that are in existence at the time of the
date of this Agreement in any country or other jurisdiction in the world, and
take any other action that may be required to maintain the value, validity and
enforceability of the Licensed IP (except as to any Licensed IP licensed under
Nonexclusive Third Party Agreements). At Licensee's expense and request,
Licensor shall, within ten (10) business days of receipt, execute any documents
reasonably requested by Licensee to file, maintain, preserve and renew all
applications of and registrations for, the Licensed IP (except as to any
Licensed IP licensed under Nonexclusive Third Party Agreements) in the name of
Licensor in any country or other jurisdiction in the world where the Licensed IP
(except as to any Licensed IP licensed under Nonexclusive Third Party
Agreements) is not registered and no application therefor is pending, or where
other action may be required to maintain protection of the Licensed IP (except
as to any Licensed IP licensed under Nonexclusive Third Party Agreements),
including the recordation of this Agreement. Licensor shall not intentionally
take, or omit to take, any action which may reasonably be expected to jeopardize
the use, value, validity, or enforceability of the Licensed IP (except as to any
Licensed IP licensed under Nonexclusive Third Party Agreements) anywhere in the
world or where the Licensed IP (except as to any Licensed IP licensed under
Nonexclusive Third Party Agreements) is used by Licensee. Licensor further shall
not allow any existing application for or registration of any Licensed IP
(except as to any Licensed IP licensed under Nonexclusive Third Party
Agreements) in any country to lapse, expire, be cancelled or otherwise become
abandoned or lose effect without first receiving written confirmation from
Licensee that such application or registration in question is no longer of
interest. Licensor shall provide ninety (90) days prior written notice to
Licensee before the termination or expiration of any Nonexclusive Third Party
License Agreement.

            f. Consents. Licensor shall at its own expense execute all documents
necessary for the grant of each Sublicense simultaneously with the date of this
Agreement.

         3. Non-Competition. Ultrak agrees to comply with the terms of Section
6.11 of the Asset Purchase Agreement, which shall be a material obligation of
this Agreement and shall be incorporated by reference into this Agreement.

         4. Consulting Services.

            a. Transition Period. To facilitate technology transfer, for the
first 90 days following the Closing ("Transition Period"), Licensor shall
provide Consulting Services that Licensee, on its own behalf or on the behalf of
its Affiliates or customers, may reasonably request relating to the support of
the Access Control Business. Such Consulting Services during the Transition
Period shall be provided by Licensor to Licensee (1) at no cost (except that
Licensee will reimburse or pay Seller any reasonable out-of-pocket costs
relating to Licensor's

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provision of such Consulting Services) if such Consulting Services relate to any
systems for which Licensor has received at least 90% of the revenue, and (2) at
a most favored rate on a time and materials basis if such Consulting Services
relate to any systems for which Licensor has received less than 90% of the
revenue for such system, provided that Licensee shall have the right to receive
telephone support services at no cost.

            b. Post-Transition Period. After the Transition Period, Licensor may
provide Consulting Services to Licensee in connection with the Access Control
Agreement, the terms of which are incorporated herein by reference, or as
mutually agreed in writing by the parties. Other services may be provided by
Licensor to Licensee as otherwise agreed by the parties.

         5. Representations and Warranties. Without limiting, and in addition
to, the representations and warranties made by Licensor in Article IV of the
Asset Purchase Agreement, Licensor represents, warrants, and covenants as
follows:

            a. Ownership. Licensor owns all right, title and interest in and to
the Licensed IP (except any Licensed IP licensed under Nonexclusive Third Party
License Agreements) and/or has the right to grant the License and the
Sublicenses granted in this Agreement.

            b. Consulting Services. Licensor shall perform the Consulting
Services in a professional and competent manner, using at least the same
standard of care that it uses in performing such services in its own affairs.

            c. Valid and Enforceable Rights. Licensor has taken, and shall take,
all necessary steps to maintain and protect Licensor's rights in and to, and the
value, validity and enforceability of, the Licensed IP (except any Licensed IP
licensed under Nonexclusive Third Party License Agreements) and to preserve its
rights under the Nonexclusive Third Party License Agreements.

            d. No Violation of Third Parties. To Licensor's knowledge, the use
of the Licensed IP (except any Licensed IP licensed under Nonexclusive Third
Party License Agreements) as permitted under this Agreement does not infringe,
conflict with, or otherwise violate, the rights of any third party.

            e. No Claims by Third Parties. Licensor is not a defendant to any
action, suit, investigation, or proceeding relating to, or otherwise has been
notified of, any claim that Licensor's use of the Licensed IP in connection with
its business infringes the rights of any third person. To Licensor's knowledge,
there is no infringement by any third person of any of the Licensed IP.

            f. Accuracy of Representations and Warranties. The representations
and warranties furnished by Licensor in this Agreement are accurate, correct and
complete in all respects and do not contain any untrue statement of fact or,
when considered in the context in which presented, omit to state a fact
necessary to make the statements and information contained herein not
misleading.

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         6. Infringement.

            a. Notice. Both parties agree promptly to give notice in writing to
the other party of any infringement or suspected or threatened infringement by a
third party of the Licensed IP which it learns of at any time during the term of
this Agreement.

            b. Rights of Licensor. Upon learning of any such potential
infringement under Section 6(a), Licensor may, but shall not be obligated to,
take whatever action it deems necessary or desirable to protect or enforce its
and Licensee's rights to the Licensed IP, including the filing and prosecution
of litigation, opposition or cancellation proceedings, the institution of
federal or state proceedings and the right to settle, subject to Licensee's
approval, which shall not unreasonably be withheld. In the event that Licensor
takes such action, Licensee shall provide, at Licensor's expense, reasonable
cooperation to Licensor in the execution of any documents or other similar
assistance required for Licensor to take such steps, including joining Licensor
as a party in any litigation where reasonably necessary for the conduct thereof.
Licensor agrees to notify Licensee in writing of Licensor's decision and course
of action as soon as reasonably possible following the receipt of any notice
from the Licensee under Section 6(a) above.

            c. Rights of Licensee. In the event that Licensor elects not to
exercise its rights under Section 6(b) or fails to take action under Section
6(b) within 30 days of learning or receiving notice of any infringement or
suspected or threatened infringement, Licensee shall have the right, but not the
obligation, at its sole expense and upon prior written notice to Licensor, to
take such action as it deems necessary for the protection of its and Licensor's
rights in and to the Licensed Property, including the institution of federal and
state proceedings and the right to settle, subject to Licensor's approval, which
shall not be unreasonably withheld. In the event Licensee takes any action
permitted under this Section 6(c), Licensor shall provide, at Licensee's
expense, reasonable cooperation to Licensee in the execution of any documents or
other similar assistance required for Licensee to take such steps, including
joining Licensee as a party in any litigation where reasonably necessary for the
conduct thereof. If Licensee decides not to take any action with respect to such
infringement to enforce its rights pursuant to this Section, it shall promptly
notify Licensor of such decision.

            d. Joint Action. Nothing in this Agreement shall be construed to
prevent Licensor and Licensee from taking action jointly in any infringement
suit or other action with respect to the Licensed IP.

            e. Recovery. The party that takes action against an unauthorized
third party use (unless the action is taken jointly) shall receive and retain
any and all funds recovered in such an action, including without limitation, the
settlement thereof, after all parties are reimbursed for all out-of-pocket costs
and expenses incurred by them in connection with such action. If the action is
taken jointly, the parties will share the expenses equally and, after payment of
expenses, the parties shall share equally any and all funds recovered in an
action, including without limitation, the settlement thereof.

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         7. Indemnification. Without limiting its indemnification obligations
under the Asset Purchase Agreement, Licensor shall indemnify Licensee, its
Affiliates and all of their directors, officers, employees, agents and
representatives from any and all claims, actions, demands, judgments, losses,
costs, expenses, damages and liabilities (including but not limited to
reasonable attorneys fees and other expenses of litigation) arising out of or
connected with any third party claim of infringement relating to the Licensed IP
(except for Licensed IP licensed under Nonexclusive Third Party License
Agreements) when used as permitted by this Agreement, any breach by Licensor of
the Nonexclusive Third Party License Agreements, or any claim by any third party
to the extent relating to the Consulting Services provided by Licensor to
Licensee under this Agreement, provided however, that with respect to claims
relating to modifications to the Licensed IP made by Licensee (or third parties
on its behalf) after the date of this Agreement, Licensor shall not have an
obligation of indemnification for any portion of the claim relating solely to
the modification. Licensee shall indemnify Licensor for any portion of a third
party infringement claim relating solely to any modification to the Licensed IP
made by Licensee or third parties on its behalf. The indemnified party shall
promptly notify the indemnifying party in writing of any claim, action, or
demand for which the indemnified party intends to claim indemnification
hereunder (however, failure to give such timely notice shall only relieve
indemnifying party from its obligations hereunder to the extent it was
prejudiced by such failure). The indemnified party agrees that the indemnifying
party will control the defense of all claims, actions, or demands which are
indemnified against hereunder at indemnifying party's expense, unless
indemnified party notifies indemnifying party that it will assume responsibility
therefor (in which event indemnified party shall bear all expenses thereof,
including fees and expenses of one counsel and any local counsel). Each party
will cooperate fully with the other party and its legal representatives in the
investigation and defense of any claim, action, or demand covered by this
indemnification. Indemnified party will permit the indemnifying party to settle
any claim, action, or demand and agrees that the indemnifying party will control
such settlement, provided that such settlement does not adversely affect the
indemnified party's rights or impose any obligations on the indemnified party in
addition to those stated in this Agreement. Indemnifying party, in the defense
of any claims, actions, or demands, will not consent to entry of any judgment or
enter into any settlement which does not include as an unconditional term the
giving by the claimant or plaintiff to the indemnified party of a release from
all liability with respect to the claim, action, or demand. No such claim,
action, or demand will be settled by the indemnified party without the prior
written consent of the indemnifying party.

         8. Limitation of Liability. EXCEPT FOR LICENSOR'S AND LICENSEE'S
OBLIGATIONS OF INDEMNIFICATION UNDER SECTION 7 OF THIS AGREEMENT, TO THE MAXIMUM
EXTENT PERMITTED BY LAW, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER
PARTY FOR ANY SPECIAL, INCIDENTAL, INDIRECT, OR CONSEQUENTIAL DAMAGES WHATSOEVER
(INCLUDING WITHOUT LIMITATION DAMAGES FOR LOST PROFITS, LOST SAVINGS, BUSINESS
INTERRUPTION, LOSS OF BUSINESS INFORMATION, OR ANY OTHER PECUNIARY LOSS) ARISING
FROM THIS AGREEMENT, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR
OTHERWISE.

         9. Confidentiality.

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            a. Obligations. Subject to Licensee's right to sublicense and assign
this Agreement pursuant to Sections 2(c) and 17, the parties acknowledge and
agree that proprietary or nonpublic information disclosed under this Agreement
by one party (the "Disclosing Party") to the other party (the "Receiving Party")
directly or indirectly, which information is marked as "proprietary" or
"confidential" or, if disclosed orally, is designated as confidential or
proprietary at the time of disclosure, constitutes the confidential and
proprietary information ("Confidential Information") of the Disclosing Party.
The Receiving Party shall retain in confidence and not disclose to any third
party any Confidential Information of the Disclosing Party without the
Disclosing Party's express written consent or as otherwise permitted under this
Agreement, and the Receiving Party shall not use such Confidential Information,
except to exercise its rights and perform its obligations under this Agreement.
Without limiting the foregoing, each party shall use at least the same
procedures and degree of care which it uses to protect its own Confidential
Information of like importance, and in no event less than reasonable care. In
the event that the Receiving Party is requested or required (by oral questions,
interrogatories, requests for information or documents, subpoena, civil
investigative demand or similar process) to disclose any of the Confidential
Information, it is agreed that the Receiving Party will provide the Disclosing
Party with prompt notice of each such request so that it may seek an appropriate
protective order or other appropriate remedy and/or waive the Receiving Party's
compliance with the provisions of this Section 9, and the Receiving Party will
cooperate with the Disclosing Party to obtain such protective order or other
remedy. In the event that such protective order or other remedy is not obtained
or that the Disclosing Party grants a waiver hereunder, the Receiving Party may
furnish only that portion of the Confidential Information which it is legally
compelled to disclose and will use its commercially reasonable efforts to obtain
reliable assurance that confidential treatment will be accorded any Confidential
Information so furnished.

            b. Exceptions. Notwithstanding the foregoing, Confidential
Information will not include information to the extent that, in each case, such
information is demonstrated by written documentation:

               (1) was already known by the Receiving Party, to the extent such
information was so known by the Receiving Party without an obligation of
confidentiality, at the time of disclosure hereunder;

               (2) was generally available to the public or otherwise part of
the public domain at the time of its disclosure to the Receiving Party
hereunder;

               (3) became generally available to the public or otherwise part of
the public domain after its disclosure and other than through any act or
omission of the Receiving Party in breach of this Agreement; or

               (4) was subsequently lawfully disclosed to the Receiving Party by
a person other than a party or developed by the Receiving Party without
reference to any information or materials disclosed by the Disclosing Party.

         10. Term and Termination; Arbitration.

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            a. Term. This Agreement and the Licenses granted hereunder will be
effective as of the Closing and will continue in full force and effect
indefinitely (the "Term"), unless terminated as set forth in this Section 10.

            b. Breach; Arbitration; Termination. In the event that either party
defaults in the performance of a material obligation under this Agreement, then
the non-defaulting party may provide written notice to the defaulting party
describing with specificity: (i) the nature and basis of such default with
reference to the applicable provisions of this Agreement; and (ii) the
non-defaulting party's requested cure. In the event that such material default
is not cured within ninety (90) days after such notice, the non-defaulting party
must seek arbitration pursuant to the provisions of Section 9.13 of the Asset
Purchase Agreement. If the non-defaulting party fails to commence arbitration
proceedings within 180 days of its initial written notice of default, the
alleged default will be deemed cured, the non-defaulting party shall irrevocably
waive its claim of default and the allegedly defaulting party shall have no
further obligation to cure. Any breach of Section 6.11 (non-competition) of the
Asset Purchase Agreement by Licensor shall be deemed a breach of this Agreement,
and the Licensee shall have the rights to any remedies under this Agreement or
under the Asset Purchase Agreement for such breach by Licensor.

            c. Certain Events of Termination. On the occurrence of any of the
following events, this Agreement may be terminated by either party, effective on
delivery of notice in accordance with Section 11 of this Agreement:

               (1) The filing of any petition seeking any reorganization,
arrangement, liquidation, dissolution or similar relief with respect to the
other party which is not dismissed or withdrawn within 60 days of filing;

               (2) The appointment of a receiver for all of the other party's
assets; and

               (3) The other party becomes insolvent, or it is unable to pay its
debts as they become due.

            d. Effect of Termination. Upon termination of this Agreement, all
right, title and interest in the Licensed IP shall vest in Licensor provided
however that Licensee shall have the right to continue to exercise the rights
under the License and Sublicenses with regard to any portion of Licensed IP
existing as of the date of termination. Any such termination described above in
this Section 10 shall be without prejudice to any other rights or claims either
party may have against the other.

            e. Survival. The terms and conditions of the following Articles and
Sections will survive termination or expiration of this Agreement: Section 2(a)
(as to any Licensed IP existing as of the date of termination), Section 2(b),
Section 2(c), Section 2(d), Section 3, Section 7, Section 8, Section 10(d),
Section 10(e) and Sections 11, 13, 14, 15 and 17. In addition, the termination
or expiration of this Agreement shall not relieve any party of any liability
that accrued prior to such termination or expiration or any losses from any
willful breach. Except as expressly provided in this Section 10(e), all other
provisions of this Agreement shall terminate upon the expiration or termination
hereof.

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            11. Notices. All notices, requests, demands and other communications
under this Agreement must be in writing and will be deemed to have been duly
given or made as follows: (a) if sent by registered or certified mail in the
United States return receipt requested, upon receipt; (b) if sent by reputable
overnight air courier two (2) business days after mailing; (c) if sent by
facsimile transmission, with a copy mailed on the same day in the manner
provided in (a) or (b) above, when transmitted and receipt is confirmed by
telephone; or (d) if otherwise actually personally delivered, when delivered,
and shall be delivered as follows:

                  If to Licensee:

                           Ultrak, Inc.
                           1301 Waters Drive Drive
                           Lewisville, Texas  75057
                           Attention:  General Counsel

                  With a copy to:

                           Gardere Wynne Sewell LLP
                           1601 Elm Street, Suite 3000
                           Dallas, Texas  75201-4761
                           Attention:  Richard L. Waggoner, Esq.

                  If to Licensor:

                           Honeywell International Inc.
                           101 Columbia Road
                           Morristown, NJ  07962
                           Attention:  Chief Patent Counsel

                  With a copy to:

                           Honeywell International Inc.
                           1985 Douglas Drive North
                           Golden Valley, MN  55422-4386
                           Attention:  General Counsel, Automation
                                and Control Solutions

or to such other address or to such other Person as either party may have last
designated by notice to the other party.

         12. Waiver. No delay or failure of any party in exercising any right,
power or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right, power or remedy preclude other or
further exercise thereof or the exercise of any other right, power or remedy.

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         13. Severability. If under any applicable and binding law or rule of
any applicable jurisdiction, any provision of this Agreement is held to be
invalid or unenforceable, the invalid or enforceable provision, or any portion
thereof, shall be modified to the extent required to be valid and enforceable
and the remaining provisions of this Agreement will continue to be given full
force and effect.

         14. Governing Law. This Agreement will be construed, performed and
enforced in accordance with the laws of the State of Delaware without giving
effect to its principles or rules of conflict of laws thereof to the extent such
principles or rules would require or permit the application of the laws of
another jurisdiction.

         15. Choice of Venue; Service of Process.

            a. Venue. Subject to the limitations set forth in Section 10(b)
above, the parties agree that the venue for any action, injunctive application
or dispute determinable by a court of law arising out of or relating to this
Agreement shall be in the State of Delaware and that the Federal and state
courts therein shall have exclusive jurisdiction over the subject matter of such
action and the parties hereto. Each of the parties hereby irrevocably and
unconditionally submits, for itself and its property, to the exclusive
jurisdiction of any Delaware State court or Federal court of the United States
of America sitting in Delaware, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement or the
transactions contemplated by this Agreement or for recognition or enforcement of
any judgment relating to this Agreement, and each of the parties hereby
irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such Delaware State court
or, to the extent permitted by law, in such Federal court. Each of the parties
agrees that a final judgment in any such action or proceeding will be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law.

            b. Service of Process. Each party to this Agreement irrevocably
consents to service of process in the manner provided for notices in Section 11.
Nothing in this Agreement will affect the right of any party to this Agreement
to serve process in any other manner permitted by law.

         16. Entire Agreement. Except as expressly provided herein, this
Agreement constitutes the entire Agreement between the parties hereto and
supersedes all provisions, negotiations, agreements and commitments in respect
thereto, and shall not be released, discharged, changed or modified in any
manner except by instruments signed by duly authorized officers or
representatives of each of the parties hereto.

         17. Successors and Assigns. Neither the License or the Agreement may be
assigned, conveyed, transferred, or licensed by (1) Licensee without Licensor's
prior written Consent, except (a) to a successor of all or substantially all of
the assets (including by merger, stock sale, asset sale, or otherwise) of
Licensee, (b) to a successor of all or substantially all of the assets
(including by merger, stock sale, asset sale, or otherwise) of the CCTV Business
or the Business, (c) by operation of law, or (d) to an Affiliate of Licensee; or
(2) Licensor without Licensee's prior written Consent. This Agreement shall be
binding upon and inure to the benefit of the parties named herein and their
respective successors and permitted assigns. Any purported

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assignment conveyance, license, or other transfer in violation of this Agreement
will be void and unenforceable.

         18. Further Assurances. Subject to the specific terms of this
Agreement, each party shall make, execute, acknowledge and deliver such other
instruments and documents and take such other actions as may be reasonably
required in order to effectuate the purposes of this Agreement and to consummate
the transactions contemplated hereby.

         19. Counterparts. This Agreement may be executed in counterparts, both
of which will constitute one and the same instrument.

         20. Force Majeure. Each party shall bear no responsibility or liability
for any losses arising out of any delay, inability to perform or interruption of
its performance of obligations under this Agreement due to any acts or omissions
of the other party or for events beyond its reasonable control (hereinafter
referred to as "Force Majeure") including, without limitation, acts of God, act
of governmental authority, act of the public enemy or due to war, riot, flood,
civil commotion, insurrection, labor difficulty, severe or adverse weather
conditions, lack of or shortage of electrical power, malfunctions of equipment
or software programs or any other cause beyond the reasonable control of the
party whose performance is affected by the Force Majeure event. The party whose
performance is affected by the Force Majeure shall immediately notify the other
party of the onset, extent and probable duration of such circumstances.

         21. Relationship of the Parties. The relationship of the parties shall
be that of independent contractors and not as employees, agents,
representatives, or partners.

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         IN WITNESS WHEREOF, the parties hereto have caused this Shared
Intellectual Property License Agreement to be signed and sealed by their duly
authorized officer or representative as of the date first above written.

Licensor:                                                   Licensee:

ULTRAK, INC.                                                PITTWAY CORPORATION

<Table>
<Caption>
<S>                                                         <C>
By:  /s/ Chris Sharng                                       By: /s/ Thomas F. Larkins
     ----------------------------------------------            -----------------------------------------
     Name:  Chris Sharng                                       Name:  Thomas F. Larkins
     Title: Senior Vice President, Chief                       Title: Assistant Secretary
            Financial Officer and Secretary
</Table><PAGE>
                                                                 EXHIBIT 10.40

                         ACCESS CONTROL SUPPLY AGREEMENT

         This Access Control Supply Agreement (the "Agreement") is made and
executed this 20th day of December, 2002 between Ultrak Operating, L.P.,
("Supplier") a Texas limited partnership, whose principal office is located in
Lewisville, Texas and Pittway Corporation ("Purchaser"), a Delaware corporation
and a wholly-owned subsidiary of Honeywell International Inc., a Delaware
corporation ("Honeywell"), a Delaware corporation whose principal office is
located in Morristown, New Jersey.

                                    RECITALS

A.       Supplier is engaged in the business of designing, manufacturing,
         selling and distributing access control systems.

B.       Pursuant to this Agreement, Purchaser desires to purchase certain
         Products (as defined in Section 2 of this Agreement) and Supplier has
         agreed to sell Purchaser the Products.

                                    AGREEMENT

         In consideration of the mutual agreements and acknowledgment herein
made, the parties agree as follows:

         1.       RIGHTS GRANTED. Upon the terms and conditions set forth
                  herein, Purchaser may purchase the Products and Supplier
                  agrees to sell the Products to Purchaser. Supplier hereby
                  grants to Purchaser the non-exclusive right upon the terms and
                  conditions herein contained to purchase inventory, promote and
                  resell the Products in the Non-U.S. Jurisdictions (as defined
                  in the Asset Purchase Agreement dated August 8 2002 among
                  Honeywell, Supplier and the other parties thereto, as amended
                  to date).

                  This Agreement is effective from the date hereof and shall
                  continue for an initial period of twenty-four (24) months.
                  Upon the written consent of Purchaser and Supplier given at
                  least ninety (90) days prior to the end of the then-applicable
                  period, this Agreement shall renew for successive one (1) year
                  periods. The initial period and all renewal periods shall be
                  referred to as the "Term" of this Agreement.

         2.       PRODUCTS. As used herein the term Supplier's products shall
                  mean those which are expressly identified in Exhibit A,
                  attached hereto and made a part hereof, together with those
                  new or additional products that Supplier and Purchaser may
                  expressly add in writing to this Agreement from time to time
                  ("Products").

         3.       PAYMENT. Purchaser shall make payment to Supplier for Products
                  within 30 days after shipment in United States dollars by wire
                  transfer or check written upon a United States money center
                  bank subject to collection; provided, however, in the event
                  Purchaser shall fail to honor such payment terms with respect
                  to any

ACCESS CONTROL SUPPLY AGREEMENT - PAGE 1
<PAGE>

                  shipment by Supplier, Supplier may thereafter sell upon such
                  shorter or other payment terms, including shipment against
                  letter of credit, consistent with Supplier's credit practices
                  then in effect.

         4.       TERMS OF SALE.

                  a.       The price Supplier charges to Purchaser shall be the
                           price Supplier may establish, from time to time, on
                           Supplier's international distributor price list.
                           Price lists shall be provided to Purchaser and the
                           price list in effect at the time the Products are
                           shipped shall control.

                  b.       Supplier shall use commercially reasonable efforts
                           consistent with Supplier's practices for its other
                           significant customers to promptly deliver Products to
                           Purchaser in accordance with the terms of the
                           applicable purchase order. Shipment of such Products
                           will be made to Purchaser, to the extent commercially
                           reasonable, from Supplier's nearest source of such
                           Products.

                  c.       Supplier shall effect shipments by any ground
                           transportation, vessel or airfreight of any flag at
                           any port or airport in the country of Supplier's
                           plant point of shipment. The delivery terms for all
                           shipments shall be FOB Supplier's plant point of
                           shipment (as defined in the Uniform Commercial Code
                           of the State of Delaware). Title to and risk of loss
                           or damage to all or any part of the Products shall
                           pass to Purchaser upon delivery of the Products to
                           the carrier for shipment.

                  d.       All costs of shipping, transporting and/or insuring
                           the Products, including all applicable stamp, duties,
                           tariffs and similar import and export charges, and
                           all sales and use taxes, VAT and any other transfer
                           taxes, shall be paid by Purchaser.

                  e.       Supplier shall be responsible for all franchise,
                           income and similar taxes imposed on or assessed to
                           Supplier as a result of fulfillment of its
                           obligations under this Agreement.

                  f.       Upon arrival of the Products to the point of
                           destination, Purchaser shall inspect Products under
                           such shipment. Claims for shortages, incorrect
                           materials or invoicing errors must be made by
                           Purchaser to Supplier within fifteen (15) days of the
                           arrival of the Products to the point of destination.
                           In the event of any such shortages, incorrect
                           materials or invoicing errors, Purchaser shall follow
                           the procedure set forth on Exhibit B attached hereto
                           and shall be limited to the remedies set forth on
                           Exhibit B.

                  g.       Any term or condition in a purchase order which
                           contradicts this Agreement shall be void and the
                           provisions of this Agreement shall control.

ACCESS CONTROL SUPPLY AGREEMENT - PAGE 2

<PAGE>

         5.       MARKETING. Purchaser shall not make any warranties or
                  representations whatsoever concerning the Products in
                  connection with the marketing or sale of Products or any with
                  respect to any product or service containing or utilizing the
                  Products, except those (a) made in writing by Supplier, or (b)
                  which are authorized in writing by Supplier to be made by
                  Purchaser.

         6.       WARRANTY POLICIES.

                  a.       Supplier shall grant to Purchaser a limited warranty
                           in accordance with its customary product warranty
                           policies in effect as of the day a Product is shipped
                           to Purchaser (the "Limited Warranty").

                  b.       Purchaser shall be entitled to offer, as an exclusive
                           limited warranty to Purchaser's customers, the
                           Limited Warranty. Purchaser covenants and agrees not
                           to make or offer any other warranty with respect to
                           Products unless Purchaser retains full responsibility
                           for such additional warranty.

                  c.       EXCEPT FOR ANY LIMITED WARRANTY TO BE GRANTED IN
                           ACCORDANCE WITH SUPPLIER'S CUSTOMARY PRODUCT WARRANTY
                           POLICIES IN EFFECT AS OF THE DAY A PRODUCT IS SHIPPED
                           TO PURCHASER, SUPPLIER SHALL NOT, AND DOES NOT, GRANT
                           ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, BY STATUTE
                           OR OTHERWISE, REGARDING THE PRODUCTS, THE FITNESS FOR
                           ANY PURPOSE, THE QUALITY, THE MERCHANTABILITY, OR
                           OTHERWISE AND DISCLAIMS ANY LIABILITY WITH RESPECT TO
                           THE PRODUCTS.

                  d.       In the event a Product under the Limited Warranty is
                           found to be defective by the Purchaser, Purchaser
                           shall follow the procedures shown in Exhibit B for
                           return or replacement of the defective Product, which
                           shall serve as Purchaser's exclusive remedy.

                  e.       LIABILITY OF EACH PARTY IN CONNECTION WITH THIS
                           AGREEMENT SHALL BE LIMITED TO THE RECOVERY OF DIRECT
                           DAMAGES, AND NEITHER PARTY SHALL BE LIABLE TO THE
                           OTHER PARTY OR ANY PERSON OR ENTITY FOR ANY INDIRECT,
                           SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL OR
                           CONSEQUENTIAL DAMAGES, ANY DAMAGES RESULTING FROM
                           LOSS OF GOODWILL, ANY PENALTIES OF ANY KIND, ANY LOSS
                           OF PROFITS OR ANY OTHER ECONOMIC LOSS, WHETHER OR NOT
                           FORESEEABLE, TO ANY PERSON, PROPERTY OR ENTITY, IN
                           CONNECTION WITH OR ARISING OUT OF THE FURNISHING,
                           PERFORMANCE OR USE OF THE PRODUCTS, WHETHER GROUNDED
                           IN CONTRACT, TORT (INCLUDING

ACCESS CONTROL SUPPLY AGREEMENT - PAGE 3

<PAGE>

                           NEGLIGENCE), ANY THEORY OF STRICT LIABILITY OR
                           OTHERWISE. A PARTY'S LIABILITY ON ANY CLAIM, WHETHER
                           GROUNDED IN CONTRACT, TORT (INCLUDING NEGLIGENCE),
                           ANY THEORY OF STRICT LIABILITY OR OTHERWISE, OF ANY
                           KIND FOR ANY LOSS OR DAMAGE ARISING OUT OF OR IN
                           CONNECTION WITH OR RESULTING FROM THIS AGREEMENT OR
                           THE PERFORMANCE OR BREACH HEREOF OR THE PRODUCTS OR
                           THEIR PERFORMANCE OR USE IS LIMITED SOLELY AND
                           EXCLUSIVELY TO THE REMEDIES PROVIDED IN THIS
                           AGREEMENT AND NO OTHER RIGHT OR REMEDY WILL BE
                           AVAILABLE TO ANY PERSON OR ENTITY. FOR PURPOSES OF
                           CLARIFICATION, THE PARTIES ACKNOWLEDGE AND AGREE THAT
                           IN THE CASE OF INDEMNIFICATION FOR ANY THIRD PARTY
                           CLAIMS UNDER THIS AGREEMENT, DIRECT DAMAGES SHALL
                           INCLUDE ALL AMOUNTS PAYABLE IN SETTLEMENT OF SUCH
                           CLAIM OR TO SATISFY A FINAL JUDGMENT ENTERED THEREON.

         7.       PROCESSING OF ORDERS. Purchaser shall deliver to Supplier on
                  or before the first day of each calendar quarter during the
                  Term a nonbonding forecast of the quantity and description of
                  Products anticipated to be required by Purchaser during such
                  calendar quarter.

                  (i) Orders in the Ordinary Course. Purchaser's orders in the
                  ordinary course of business for Products shall be filled
                  (generally from inventory) consistent with Supplier's
                  customary business practices. If Purchaser delivers to
                  Supplier a written purchase order (including via electronic
                  transmission) in the ordinary course of business for Products,
                  such order will be deemed to be rejected by Supplier if
                  Supplier fails to respond to Purchaser by either filling the
                  order or confirming in writing within five (5) business days
                  after receipt of such order a reasonable delivery time
                  schedule.

                  (ii) Orders Outside the Ordinary Course. Supplier and
                  Purchaser shall cooperate with each other to coordinate
                  delivery time schedules with respect to orders outside the
                  ordinary course of business (generally involving large
                  projects or contracts).

         8.       RELATIONSHIP OF THE PARTIES The relationship of the parties to
                  this Agreement shall be that of independent contractors and
                  not as employees, agents, representatives or partners.

         9.       MISCELLANEOUS PROVISIONS.

                  a.       All notices, requests, demands and other
                           communications under this Agreement must be in
                           writing and will be deemed to have been duly given or
                           made as follows: (a) if sent by registered or
                           certified mail in the United States return receipt
                           requested, upon receipt; (b) if sent by reputable

ACCESS CONTROL SUPPLY AGREEMENT - PAGE 4

<PAGE>

                           overnight air courier two (2) business days after
                           mailing; (c) if sent by facsimile transmission, with
                           a copy mailed on the same day in the manner provided
                           in (a) or (b) above, when transmitted and receipt is
                           confirmed by telephone; or (d) if otherwise actually
                           personally delivered, when delivered, and shall be
                           delivered as follows:

                           To Purchaser,

                           Honeywell International Inc.
                           Security & Fire Solutions
                           165 Eileen Way
                           Syosset, New York  11791
                           Attention:  Ed Freeman
                           Facsimile: (516) 364-5344

                           with a copy to:

                           Honeywell International Inc.
                           Security & Fire Solutions
                           165 Eileen Way
                           Syosset, New York  11791
                           Attention:  General Counsel
                           Facsimile: (516) 364-5344

                           To Supplier:

                           Ultrak Operating L.P.
                           1301 Waters Ridge Drive
                           Lewisville, Texas  75057
                           Attention:  General Counsel
                           Facsimile: (972) 353-6654

                  b.       For purposes of this Agreement, "Affiliate" shall
                           mean any other Person that directly or indirectly
                           controls, is controlled by, or is under common
                           control with, another Person. The terms "controlled
                           by" and "under common control with" mean the
                           possession, directly or indirectly, of the power to
                           direct or cause the direction of the management
                           policies of a Person, whether through the ownership
                           of voting securities, by contract or credit
                           arrangement, as trustee or executor, or otherwise.
                           The term "Person" means any natural person, firm,
                           limited liability company, general partnership,
                           limited partnership, joint venture, association,
                           corporation, trust, governmental authority or other
                           entity.

                  c.       Neither Supplier nor Purchaser shall divulge to a
                           third party any confidential or proprietary
                           information of the other that may have become known
                           as a result of the performance of this Agreement.
                           This confidentiality obligation shall continue for a
                           period of five (5) years after

ACCESS CONTROL SUPPLY AGREEMENT - PAGE 5
<PAGE>

                           termination of this Agreement. Supplier acknowledges
                           that Purchaser is engaged in the access control
                           business, and Supplier will use commercially
                           reasonable efforts to limit access to such
                           confidential or proprietary information to Supplier's
                           employees and others who need to know for purposes of
                           filling orders. Nothing in this Agreement shall be
                           construed to restrict in any manner Purchaser's
                           ability to engage in the access control business.
                           Purchaser shall not modify, translate, reverse
                           engineer, decompile, dissassemble, or create
                           derivative works of Products supplied under this
                           Agreement.

                  d.       If under any applicable and binding law or rule of
                           any applicable jurisdiction, any provision of this
                           Agreement is held to be invalid or unenforceable, the
                           invalid or enforceable provision, or any portion
                           thereof, shall be modified to the extent required to
                           be valid and enforceable and the remaining provisions
                           of this Agreement will continue to be given full
                           force and effect.

                  e.       This Agreement, all purchase orders and all notices
                           required or given hereunder or in connection with
                           this Agreement shall be in the English language. No
                           translation into other language shall be taken into
                           consideration in the interpretation of this Agreement
                           and the binding version of all of the foregoing shall
                           be the English version.

                  f.       This Agreement may be executed in counterparts, both
                           of which will constitute one and the same instrument.

                  g.       This Agreement constitutes the entire Agreement
                           between the parties hereto with respect to the
                           subject matter hereof and supersedes all provisions,
                           negotiations, agreements and commitments in respect
                           thereto, and shall not be released, discharged,
                           changed or modified in any manner except by
                           instruments signed by duly authorized officers or
                           representatives of each of the parties hereto.

                  h.       No delay or failure of any party in exercising any
                           right, power or remedy hereunder shall operate as a
                           waiver thereof, nor shall any single or partial
                           exercise of any such right, power or remedy preclude
                           other or further exercise thereof or the exercise of
                           any other right, power or remedy.

                  i.       The provisions set forth in Sections 6, 9, 11, 12, 14
                           and 15 shall survive the termination of this
                           Agreement.

         10.      DESIGNATION OF CONTACT(s). Purchaser and Supplier each shall
                  designate a primary and secondary individual as its contact(s)
                  with the other party. All contact between the parties with
                  respect to this Agreement shall be through the designated
                  contacts. Any party may replace its contact(s) with other
                  individuals upon written notification to the other party,
                  provided that such individuals first comply with the
                  provisions of this Section 10.

ACCESS CONTROL SUPPLY AGREEMENT - PAGE 6

<PAGE>

         11.      GOVERNING LAW/VENUE. This Agreement will be construed,
                  performed and enforced in accordance with the laws of the
                  State of Delaware without giving effect to its principles or
                  rules of conflict of laws thereof to the extent such
                  principles or rules would require or permit the application of
                  the laws of another jurisdiction. The parties expressly agree
                  that the U.N. Convention on International Sales of Goods shall
                  not apply.

                  Subject to the limitations set forth in Section 12 below, the
                  parties agree that the venue for any action, injunctive
                  application or dispute determinable by a court of law arising
                  out of or relating to this Agreement shall be in the State of
                  Delaware and that the Federal and state courts therein shall
                  have exclusive jurisdiction over the subject matter of such
                  action and the parties hereto. Each of the parties hereby
                  irrevocably and unconditionally submits, for itself and its
                  property, to the exclusive jurisdiction of any Delaware State
                  court or Federal court of the United States of America sitting
                  in Delaware, and any appellate court from any thereof, in any
                  action or proceeding arising out of or relating to this
                  Agreement or the transactions contemplated by this Agreement
                  or for recognition or enforcement of any judgment relating to
                  this Agreement, and each of the parties hereby irrevocably and
                  unconditionally agrees that all claims in respect of any such
                  action or proceeding may be heard and determined in such
                  Delaware State court or, to the extent permitted by law, in
                  such Federal court. Each of the parties agrees that a final
                  judgment in any such action or proceeding will be conclusive
                  and may be enforced in other jurisdictions by suit on the
                  judgment or in any other manner provided by law.

                  Each party to this Agreement irrevocably consents to service
                  of process in the manner provided for notices in Section 9(a).
                  Nothing in this Agreement will affect the right of any party
                  to this Agreement to serve process in any other manner
                  permitted by law.

         12.      ARBITRATION. Supplier and Purchaser shall discuss mutually and
                  make the best effort to resolve any dispute under this
                  Agreement. In the event such negotiations are not successful
                  within thirty (30) calendar days, all disputes, controversies
                  or differences which may arise between the parties hereto, out
                  of or in relation to or in connection with this Agreement, or
                  the breach thereof, shall be finally settled by arbitration.
                  Within ten (10) calendar days after receipt of written notice
                  from one party that it is submitting the matter to
                  arbitration, each party shall designate in writing one
                  arbitrator to resolve the dispute who shall, in turn, jointly
                  select a third arbitrator within twenty (20) calendar days of
                  their designation, with the third arbitrator to be selected in
                  accordance with the procedure established by the American
                  Arbitration Association. The arbitrators so designated shall
                  each be a lawyer experienced in commercial and business
                  affairs who is not an employee, consultant, officer or
                  director of any party hereto or any Affiliate of any party to
                  this Agreement and who has not received any compensation,
                  directly or indirectly, from any party hereto or any Affiliate
                  of any party to this Agreement during the two (2) year period
                  preceding the date of this Agreement. The arbitration shall be
                  governed by the rules of the American Arbitration

ACCESS CONTROL SUPPLY AGREEMENT - PAGE 7

<PAGE>

                  Association; provided, however, that the arbitrators shall
                  have sole discretion with regard to the admissibility of
                  evidence. The arbitrators shall use their best efforts to rule
                  on each disputed issue within thirty (30) calendar days after
                  the completion of the hearings. The determination of the
                  arbitrators as to the resolution of any dispute shall be
                  binding and conclusive upon all parties hereto. All rulings of
                  the arbitrators shall be in writing, with the reasons for the
                  ruling given, and shall be delivered to the parties hereto.
                  Each party shall pay the fees of its respective designated
                  arbitrator and its own costs and expenses of the arbitration.
                  The fees of the third arbitrator shall be paid fifty percent
                  (50%) by each of the parties. Any arbitration pursuant to this
                  Section 12 shall be conducted in Dallas, Texas. Any
                  arbitration award may be entered in and enforced by any court
                  having jurisdiction thereof and the parties hereby consent and
                  commit themselves to the jurisdiction of the courts of any
                  competent jurisdiction for purposes of the enforcement of any
                  arbitration award. Any party may seek from any court interim
                  or provisional relief that is necessary to protect the rights
                  or property of that party, pending the appointment of the
                  arbitrator or pending the arbitrator's determination of the
                  merits of the controversy. None of the parties shall be
                  required to use the foregoing procedures to enforce the
                  provisions of Section 12 of this Agreement. This Section 12
                  shall survive the signing, delivery and termination of this
                  Agreement.

         13.      FORCE MAJEURE. Supplier shall bear no responsibility or
                  liability for any losses arising out of any delay, inability
                  to perform or interruption of its performance of obligations
                  under this Agreement due to any acts or omissions of the
                  Purchaser or for events beyond its reasonable control
                  (hereinafter referred to as "Force Majeure") including,
                  without limitation, acts of God, act of governmental
                  authority, act of the public enemy or due to war, riot, flood,
                  civil commotion, insurrection, labor difficulty, severe or
                  adverse weather conditions, lack of or shortage of electrical
                  power, malfunctions of equipment or software programs or any
                  other cause beyond the reasonable control of Supplier whose
                  performance is affected by the Force Majeure event. Supplier
                  shall immediately notify the Purchaser of the onset, extent
                  and probable duration of such circumstances and if Supplier is
                  unable to remove such causes within thirty (30) days, the
                  Purchaser may, upon written notice, terminate this Agreement.

         14.      SHIPMENTS AFTER TERMINATION. The obligations of Supplier to
                  deliver and Purchaser to purchase any Product in accordance
                  with purchase orders exchanged prior to the termination of
                  this Agreement shall survive such termination of this
                  Agreement, and such purchase and sale shall occur in
                  accordance with the terms and conditions hereof.

         15.      SUCCESSORS AND ASSIGNS. This Agreement will be binding upon
                  and inure to the benefit of the parties and their respective
                  successors and permitted assigns, but will not be assignable,
                  by operation of law or otherwise, by any party without the
                  prior written consent of the other party and any purported
                  assignment or other transfer will be void and unenforceable;
                  provided, however, that the Purchaser may assign this
                  Agreement in whole or in part or any of its rights hereunder

ACCESS CONTROL SUPPLY AGREEMENT - PAGE 8

<PAGE>

                  without Supplier's consent to one or more of its Affiliates or
                  to any purchaser of Purchaser's closed circuit television
                  products business; and provided further, however, that in the
                  event Supplier shall sell or transfer the assets or business
                  of Supplier which produces the Products or sells the Products
                  to Purchaser, Supplier shall cause the buyer or transferee of
                  such assets or business to assume the obligations of Supplier
                  hereunder.

ACCESS CONTROL SUPPLY AGREEMENT - PAGE 9

<PAGE>

         IN WITNESS WHEREOF the parties have executed this Agreement on the date
first set forth above.

<Table>
<S>                                   <C>
                                      SUPPLIER

                                      ULTRAK OPERATING, L.P..

                                      By:  Ultrak GP, Inc., its sole General Partner

                                           By: /s/ Chris Sharng
                                              -----------------------------------
                                              Chris Sharng, Senior Vice President
                                              Chief Financial Officer & Secretary

                                      PURCHASER

                                      PITTWAY CORPORATION

                                      By: /s/ Thomas F. Larkins
                                         ----------------------------------------
                                         Thomas F. Larkins
                                         Assistant Secretary
</Table>

ACCESS CONTROL SUPPLY AGREEMENT

<PAGE>

                                    EXHIBIT A
                             PRODUCT AND PRICE LIST

                                    EXHIBIT A

<PAGE>

                                    EXHIBIT B
                          PRODUCT RETURN/REPAIR POLICY

1.       Purchaser will test and confirm the defective or non-operational status
         of Products.

2.       Within fifteen (15) days or receipt, Purchaser will notify Supplier
         about any claim for shortages, incorrect materials or invoicing error,
         or the occurrence of defective or non-operational Products and request
         a "Return Authorization Number" from the Supplier for the items they
         would like to return for repair (hereinafter referred to as "RA#") or
         replacement by e-mail to the attention of the Customer Service Manager.
         This RA# is to be used for all correspondence and shipping documents
         that relate to the associated Product.

3.       Supplier will either send a replacement Product or credit the price
         after checking the contents returned under the RA#. The replacement
         Products can be shipped together with the next order shipment by
         Purchaser's request. If it is necessary, Supplier can request Purchaser
         an additional test or further confirmation of operational status.
         Purchaser is responsible for shipping costs of replacement Products to
         the Purchaser.

4.       Purchaser will ship the defective or non-operational Products to
         Supplier regularly. Supplier is responsible for shipping cost.

5.       Purchaser will inform Supplier to the attention of the Customer Service
         Manager of an itemized list of all Products returned in each shipment.

6.       Upon receipt of the returned Product, Supplier will test the Product to
         verify the defective or non-operational status and communicate such
         results to the Purchaser.

                                   EXHIBIT B

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