Document:

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                       GUARANTY REIMBURSEMENT AGREEMENT

         THIS GUARANTY REIMBURSEMENT AGREEMENT (this "Agreement"), dated as of
December 17, 2001, is between Ultrak, Inc., a Delaware corporation (the
"Company"), and George K. Broady ("Broady").

         RECITALS. The Company has been attempting to restructure the
indebtedness related to its headquarters facility in Lewisville, Texas (the
"Facility") for over a year. The Facility is owned by Ultrak Operating, L.P.,
a Texas limited partnership that is indirectly owned by the Company ("UOLP").
UOLP has negotiated the sale of the Facility to Briarwood Waters Ridge, L.P.
("Buyer/Lessor") pursuant to that certain Contract of Sale between UOLP and
Buyer/Lessor. UOLP and Buyer/Lessor are also executing that certain Lease
Agreement (herein so called) whereby UOLP will lease the Facility from
Buyer/Lessor. In connection with the sale and leaseback, Buyer/Lessor has
required that Broady execute that certain Guaranty attached hereto as Exhibit
A (the "Guaranty"). The Guaranty creates a significant financial risk for
Broady and the Company has agreed to execute this Agreement and the Warrant
Agreement (as hereafter defined) in consideration of Broady executing the
Guaranty. Broady would not have executed the Guaranty without the Company's
execution of this Agreement and the Warrant Agreement.

         NOW, THEREFORE, in consideration of the premises and the respective
covenants and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound, hereby covenant and agree
as follows:

         1. Warrant Agreement. The Company agrees to deliver a Warrant
Agreement (the "Warrant Agreement"), to Broady whereby the Company will grant
Broady warrants (the "Warrants") to acquire 200,000 shares of the Company's
Common Stock at a price per share of $1.64 for three (3) years. Because the
issuance of the Warrants to Broady shall cause Broady to be subject to
additional federal income taxes ("Taxes"), the Company shall, prior to the due
date for Broady to pay such Taxes (including any quarterly estimated Tax
payment date) resulting from the issuance of the Warrants to Broady, pay
Broady additional amounts as are necessary so that after taking into account
all Taxes on the issuance of the Warrants and all Taxes on such additional
payments to Broady, Broady will be in the same after-Tax position that he
would have been in if no Taxes were payable with respect to the Warrants.

         2. Indemnification and Reimbursement. The Company hereby agrees to
indemnify, hold harmless, defend and promptly reimburse Broady, against any
losses, claims, damages, payments, or liabilities to which Broady may become
subject under the Guaranty.

         3. Payment of Expenses. All costs and expenses of Broady in
connection with the Guaranty, this Agreement, and the Warrant Agreement,
including (but not limited to) fees and disbursements of counsel shall be
borne by the Company.

         4. Affirmative and Negative Covenants.

Guaranty Reimbursement Agreement-- Page 1
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         (a) So long as Broady has any liability or obligation under the
Guaranty, unless Broady agrees otherwise in writing, the Company will:

            (i) Promptly inform Broady of (A) any and all material adverse
         changes in the Company's financial condition, and (B) all claims made
         against the Company or any direct or indirect subsidiary of the
         Company ("Subsidiary") which could materially adversely affect the
         financial condition of the Company or any Subsidiary.

            (ii) Promptly provide Broady with:

                 (A)    Monthly and quarterly unaudited financial statements
                        as soon as available.

                 (B)    Annual audited financial statements as soon as
                        available.

                 (C)    Copies of each filing by the Company with the
                        Securities and Exchange Commission (the "SEC")
                        promptly after each such filing is made with the SEC.

                 (D)    Notice of any event that has had, or could (with any
                        other event or events) be reasonably expected to have
                        a material adverse effect on the Company's assets,
                        liabilities, operations, financial condition, or
                        prospects.

                 (E)    Copies of any notice of default received from any
                        lender.

                 (F)    Copies of any notice of default received by the
                        Company or a Subsidiary with respect to any material
                        agreement or document.

         (b) So long as Broady has any liability or obligation under the
Guaranty, the Company will not, without the prior written consent of Broady
(which consent shall not be unreasonably withheld or delayed):

              (i) sell or transfer ownership (by merger or otherwise) of any
         Subsidiary or assets with a sales price in excess of $500,000 (other
         than sales of inventory in the ordinary course of business);

              (ii) purchase or acquire the equity of any entity or assets from
         any person or entity for more than $2,000,000 (other than purchases
         of inventory in the ordinary course of business); or

              (iii) merge or consolidate the Company with another entity in a
         transaction with a value or contemplated value of more than
         $2,000,000.

Guaranty Reimbursement Agreement-- Page 2
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         If Broady withholds consent to a proposed transaction covered by this
Section 4(b) (a "Covered Transaction"), and a majority of the Company's
Directors (excluding George Broady and any of his family members then serving
as Directors) determines (at a meeting or by written consent) that they feel
that Broady is being unreasonable in withholding his consent to a Covered
Transaction, then Broady shall be notified and the parties hereto irrevocably
agree that one individual (the "Arbitrator") shall determine if Broady is
unreasonably withholding his consent to the Covered Transaction. The
determination by the Arbitrator shall be final and binding and non-appealable.
The Arbitrator need not provide a written opinion or other writing supporting
the Arbitrator's decision. The only writing required from the Arbitrator shall
be a writing setting forth the Arbitrator's decision. If the Arbitrator
determines that Broady is unreasonably withholding Broady's consent to a
Covered Transaction, then the Company shall be entitled to engage in such
Covered Transaction without Broady's consent and without being in violation of
this Agreement. If the Arbitrator determines that Broady is reasonably
withholding Broady's consent to a Covered Transaction, then the Company shall
not be entitled to engage in such Covered Transaction (unless Broady
subsequently consents to such Covered Transaction). The parties agree that, on
or before March 1, 2002, the parties shall execute a document agreeing to
three (3) people (the "Available Arbitrators") whom the parties irrevocably
agree can act as the Arbitrator. If the Directors determine that Broady is
unreasonably withholding consent to a Covered Transaction, then the Company
shall select the Arbitrator from among the Available Arbitrators.

         5. Transfer of Option to Purchase. If Broady has to pay, on a
cumulative basis, at least $180,000 (the "Trigger Amount") pursuant to the
Guaranty and Broady has not been fully reimbursed all of such Trigger Amount
within thirty (30) days after making the payment pursuant to the Guaranty that
caused Broady to have cumulatively paid the Trigger Amount (such events are
referred to as the "Triggering Event"), then the Company shall promptly assign
to, or cause UOLP to assign to, Broady all rights under the Lease Agreement to
purchase the Facility. On or before March 15, 2002, the parties agree to
execute an assignment to Broady of the right to purchase the Facility and
place the assignment in escrow with a third party and the assignment shall
automatically be released to Broady upon the occurrence of the Triggering
Event but shall remain fully exercisable by UOLP or the Company prior to the
occurrence of the Triggering Event.

         6. Escrow of Minimum Rent. On or before July 1, 2002, the Company
will enter into an Escrow Agreement (the "Escrow Agreement") with a bank or
other financial institution (the "Escrow Agent") selected by Broady and the
Company will deposit $180,000 (the "Escrow Deposit") with the Escrow Agent.
The Escrow Agreement will provide, among other things, that (a) the Escrow
Deposit may be used only to pay Minimum Rent (as defined in the Lease
Agreement) under the Lease Agreement as directed in writing by Broady if (and
only if) UOLP does not timely pay such Minimum Rent and the Company does not
pay or cause to be paid the amount of such Minimum Rent, (b) the Escrow
Deposit shall bear interest and that all such interest shall be payable only
to the Company, and (c) all costs, fees, and expenses of the Escrow Agent and
its counsel (collectively, "Escrow Expenses") relating to the establishment,
maintenance, and monitoring of the Escrow Agent shall be payable by the
Company and not by Broady and the Company hereby agrees to indemnify and hold
harmless Broady with respect to any Escrow Expenses. The requirements of this
Section 6 are subject to the Company's lender(s) permitting the Escrow
Agreement and the Escrow Deposit; provided, however, that the Company

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shall use all reasonable best efforts to cause such lender(s) to agree to the
Escrow Agreement and the Escrow Deposit and the terms of this Section 6.

         7. Release on Sale. In connection with (a) any sale of all or
substantially all of the assets of the Company, (b) the merger of the Company
with another company whereby the shareholders of the Company do not own at
least 50.1% of the entity surviving the merger, or (c) the sale of Common
Stock and/or preferred stock by the Company to a person or group who,
following such sale, control in excess of 50% of the outstanding votes
entitled to be cast by the shareholders of the Company (the events described
in the foregoing clauses (a), (b), and (c) are collectively referenced to as
the "Material Events"), then, unless Broady otherwise agrees in writing, the
Company shall use all reasonable best efforts to cause the Guaranty to be
fully released in writing as part of the consummation and closing of any
Material Event.

         8. Notices. Any notice or other communication required or permitted
to be given under this Agreement must be in writing and given by (a) deposit
in the United States mail, addressed to the party to be notified, postage
prepaid and registered or certified with return receipt requested, (b)
delivery in person, by courier service, or by overnight delivery service, or
(c) transmission by telecopy. Each notice or communication that is mailed,
delivered, or transmitted in the manner described above shall be deemed
sufficiently given, served, sent, and received, in the case of mailed notices,
on the third business day following the date on which it is mailed and, in the
case of notices delivered by hand, courier service, overnight delivery
service, or telecopy, at such time as it is delivered to the addressee (with
the delivery receipt or the affidavit of the courier service or overnight
delivery service being proof of delivery) or at such time as delivery is
refused by the addressee upon presentation. For purposes of notice, the
addresses of the parties shall be the addresses set forth beside the
signatures of the parties hereto. Any party may change its address for notice
by written notice given to the other parties hereto.

         9. Binding Effect. This Agreement shall be binding upon and
enforceable by the parties hereto and their respective executors,
administrators, successors, personal representatives, heirs, and permitted
assigns. Broady's rights hereunder are not assignable.

         10. Governing Law Venue. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED, CONSTRUED, AND ENFORCED
IN ACCORDANCE WITH TEXAS LAW AND THE INTERNAL LAWS OF THE STATE OF TEXAS
WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF. The parties agree
that this Agreement is performable in Dallas County, Texas and that any
litigation directly or indirectly relating to this Agreement must be brought
before and determined by a court of competent jurisdiction within Dallas
County, Texas, and the parties hereby agree to waive any rights to object to,
and hereby agree to submit to, the jurisdiction of such courts.

         11. Severability. If any provision of this Agreement is determined to
be illegal, invalid, or unenforceable under present or future laws effective
during the term hereof, such provision shall be fully severable and this
Agreement shall be construed and enforced as if such illegal, invalid, or
unenforceable provision never comprised a part hereof; and the remaining
provisions hereof shall remain in full force and effect and shall not be
affected by the illegal, invalid, or unenforceable provision or by its
severance herefrom. Furthermore, in lieu of such

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illegal, invalid, or unenforceable provision, there shall be added
automatically as part of this Agreement, a provision as similar in its terms
to such illegal, invalid, or unenforceable provision as may be possible and be
legal, valid, and enforceable.

         12. Entire Agreement. This Agreement constitutes the entire agreement
and understanding between the parties relating to the subject matter hereof
and thereof and supersede all prior representations, endorsements, premises,
agreements, memoranda, communications, negotiations, discussions,
understandings, and arrangements, whether oral, written, or inferred, between
the parties relating to the subject matter hereof.

         13. Miscellaneous. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. The parties intend that
faxed signature pages to this Agreement will be enforceable without
presentation of the manually executed signature pages. This Agreement may not
be modified, amended, altered, or supplemented, in whole or in part, except
upon the execution and delivery of a written instrument executed by the
parties to this Agreement. The headings of this Agreement have been inserted
for convenience of reference only and shall in no way restrict or otherwise
modify any of the terms or provisions hereof or affect in any way the meaning
or interpretation of this Agreement. The waiver of any breach of any term or
condition of this Agreement shall not be deemed to constitute the waiver of
any other breach of the same or any other term or condition. Except to the
extent a third party is expressly given rights herein, any agreement
contained, expressed, or implied in this Agreement shall be only for the
benefit of the parties hereto and their respective executors, administrators,
successors, personal representatives, heirs, and assigns and such agreements
shall not inure to the benefit of the obligees of any indebtedness of any
party hereto, it being the intention of the parties hereto that no person or
entity shall be deemed a third party beneficiary of this Agreement except to
the extent a third party is expressly given rights herein. The use of terms
denoting masculine, feminine, or neuter gender shall include each other
gender. The use of singular or plural references shall include the other where
appropriate.

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the date first written above.

                                            ULTRAK, INC.
Address:

1301 Waters Ridge Drive
Lewisville, TX  75057
Telecopy No. 972-353-6679                   By:_________________________________
Attn: President and General Counsel         Its:________________________________

Address:

10050 Strait Lane
Dallas, TX 75229                                ________________________________
                                                GEORGE K. BROADY

Guaranty Reimbursement Agreement-- Page 5<PAGE>

                               WARRANT AGREEMENT

         This WARRANT AGREEMENT (this "Agreement"), dated as of January 14,
2002, is between ULTRAK, INC., a Delaware corporation (the "Company"), and
GEORGE K. BROADY ("Grantee").

                              W I T N E S S E T H:

         WHEREAS, in connection with, and as partial consideration for,
Grantee's execution of that certain Guaranty to Briarwood Waters Ridge LP for
the benefit of the Company and Ultrak Operating, L.P., an affiliate of the
Company, the Board of Directors of the Company desires to grant to Grantee
warrants (the "Warrants") to purchase 200,000 shares of Common Stock of the
Company ("Common Stock"); and

         WHEREAS, this Agreement is executed and the Warrants are granted
pursuant to the Indemnification Agreement.

         NOW, THEREFORE, in consideration of the premises, the agreements set
forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. Grant. Subject to the terms and conditions hereof, Grantee is
hereby granted Warrants by which Grantee has the right to purchase, at any
time prior to January 14, 2005 (the "Expiration Date"), at 5:00 p.m., Dallas,
Texas time on such date, up to 200,000 shares of Common Stock (the "Shares").
One Share is hereinafter referred to as a "Warrant Security" and multiple
Shares are collectively referred to as the "Warrant Securities."

         2. Warrant Certificates. The warrant certificates (the "Warrant
Certificates") delivered and to be delivered pursuant to this Agreement shall
be in the form set forth in Exhibit A, attached hereto and made a part hereof,
with such appropriate insertions, omissions, substitutions, and other
variations as required or permitted by this Agreement.

         3. Exercise of Warrant. The Warrants initially are exercisable at an
aggregate initial exercise price (subject to adjustment as provided in Section
8 hereof) per Warrant Security set forth in Section 6 hereof payable by
certified or official bank check, subject to adjustment as provided in Section
8 hereof. In the alternative, each Holder may exercise its right to receive
Warrant Securities on a net basis, such that without the exchange of any
funds, the Holder receives that number of Warrant Securities otherwise
issuable upon exercise of its Warrants less that number of Warrant Securities
having a fair market value equal to the aggregate Exercise Price that would
otherwise have been paid by the Holder for the Warrant Shares being issued.
Upon surrender of a Warrant Certificate with the annexed Form of Election to
Purchase duly executed, together with payment of the Exercise Price (as
hereinafter defined) for the Warrant Securities purchased, at the Company's
principal offices (presently located at 1301 Waters Ridge Drive, Lewisville,
Texas 75057), the registered holder of a Warrant Certificate ("Holder" or
"Holders") shall be entitled to receive a certificate or certificates for the
shares of Common Stock so purchased. The purchase rights represented by each
Warrant Certificate are exercisable

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at the option of the Holders thereof, in whole or in increments of at least
the lesser of 25,000 Shares or the unexercised balance of all Warrant
Securities (but not as to fractional shares of the Common Stock). In the case
of the purchase of less than all Warrant Securities purchasable under any
Warrant Certificate, the Company shall cancel said Warrant Certificate upon
the surrender thereof and shall execute and deliver a new Warrant Certificate
of like tenor for the balance of the Warrant Securities purchasable
thereunder.

         4. Issuance of Certificates. Upon the exercise of the Warrants, the
issuance of certificates for shares of Common Stock and/or other securities,
properties or rights underlying such Warrants shall be made forthwith (and in
any event within fifteen (15) business days thereafter) without charge to the
Holder thereof including, without limitation, any tax which may be payable in
respect of the issuance thereof, and such certificates shall (subject to the
provisions of Sections 5 and 7 hereof) be issued in the name of, or in such
names as may be directed by, the Holder thereof; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect
of any transfer involved in the issuance and delivery of any such certificates
in a name other than that of the Holder and the Company shall not be required
to issue or deliver such certificates unless or until the person or persons
requesting the issuance thereof shall have paid to the Company the amount of
such tax or shall have established to the satisfaction of the Company that
such tax has been paid.

         Warrant Certificates shall be dated the date of execution by the
Company upon initial issuance, division, exchange, substitution or transfer.

         5. Restriction On Transfer of Warrants. The Holder of a Warrant
Certificate, by its acceptance thereof, covenants and agrees that the Warrants
are being acquired as an investment and not with a view to the distribution
thereof in violation of the Securities Act (as defined below). This Agreement
is binding upon any Holder(s) of a Warrant Certificate and their respective
heirs, successors, and permitted assigns. The Holder may assign interests
granted by this Agreement in amounts of at least 25,000 Warrant Securities,
provided that the transferee agrees to be bound by the terms of this Agreement
as if such transferee were a Holder and, provided further, that the assignment
is made pursuant to an effective registration statement under the Securities
Act or a valid exemption from registration under the Securities Act of 1933,
as amended (the "Securities Act"). If requested by the Company, the Holder
must also furnish to the Company an opinion of counsel reasonably satisfactory
to the Company to such effect.

         6. Exercise Price.

              6.1 Initial and Adjusted Exercise Price. Except as otherwise
provided in Section 8 hereof, the initial exercise price of each Warrant shall
be $1.64 per Warrant Security. The adjusted exercise price shall be the price
which shall result from time to time from any and all adjustments of the
initial exercise price in accordance with the provisions of Section 8 hereof.

              6.2 Exercise Price. The term "Exercise Price" herein shall mean
the initial exercise price or the adjusted exercise price, depending upon the
context.

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         7. Restrictive Legends. The Warrant Certificates, any certificates
representing the Shares underlying the Warrants and any of the other
securities issuable upon exercise of the Warrants shall bear substantially the
following restrictive legend:

The securities represented by this certificate have not been registered under
the Securities Act of 1933, as amended (the "Act"), and may not be offered or
sold except pursuant to (i) an effective registration statement under the Act,
(ii) to the extent applicable, Rule 144 under the Act (or any similar rule under
such Act relating to the disposition of securities), or (iii) an opinion of
counsel, if such opinion shall be reasonably satisfactory to counsel to the
issuer, that an exemption from registration under such Act is available.

         8. Adjustments to Exercise Price and Number of Securities.

              8.1 Adjustments for Change in Capital Stock. If at any time
after the date of this Agreement, the Company:

                 (a) pays a dividend or makes a distribution on its Common
         Stock exclusively in shares of its Common Stock;

                 (b) subdivides its outstanding shares of Common Stock into a
         greater number of shares;

                 (c) combines its outstanding shares of Common Stock into a
         smaller number of shares;

                 (d) pays a dividend or makes a distribution on its Common
         Stock in shares of its capital stock other than Common Stock; or

                 (e) issues by reclassification of its Common Stock any shares
         of its capital stock;

then the Holders of the unexercised Warrants shall thereafter be entitled to
receive, upon the exercise of such Warrants, the same shares of Common Stock and
other securities that they would have owned or been entitled to receive
immediately after such event as if the Warrants had been exercised immediately
prior to such event. The adjustment pursuant to this Section 8.1 shall be made
successively each time that any event listed in this Section 8.1 above shall
occur. Upon each adjustment in the number of shares for which a Warrant is
exercisable pursuant to this Section 8.1, the Exercise Price for such Warrants
shall be adjusted to equal an amount per share of Common Stock equal to the
Exercise Price before such adjustment multiplied by a fraction, of which the
numerator is the number of shares of Common Stock for which a Warrant is
exercisable immediately before giving effect to such adjustment, and the
denominator of which is the number of shares of Common Stock for which a Warrant
is exercisable immediately after giving effect to such adjustment.

              8.2 Definition of Common Stock. For the purpose of this
Agreement, the term "Common Stock" shall mean (i) the class of stock
designated as Common Stock in the Certificate of Incorporation of the Company
as amended as of the date hereof, or (ii) any other class of stock resulting
from successive changes or reclassifications of such Common Stock

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consisting solely of changes in par value, or from par value to no par value,
or from no par value to par value.

         8.3 Merger or Consolidation. In case of any consolidation of the
Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not
result in any reclassification or change of the outstanding Common Stock), the
corporation formed by such consolidation or merger shall execute and deliver
to the Holder a supplemental warrant agreement providing that the holder of
each Warrant then outstanding or to be outstanding shall have the right
thereafter (until the expiration of such Warrant) to receive, upon exercise of
such Warrant, the kind and amount of shares of stock and other securities and
property receivable upon such consolidation or merger, by a holder of the
number of shares of Common Stock of the Company for which such Warrant might
have been exercised immediately prior to such consolidation, merger, sale or
transfer. Such supplemental warrant agreement shall provide for adjustments
which shall be identical to the adjustments provided in Section 8. The above
provision of this subsection shall similarly apply to successive
consolidations or mergers.

         8.4 No Adjustment of Exercise Price in Certain Cases. Notwithstanding
anything to the contrary herein, no adjustment of the Exercise Price or number
of shares of Common Stock shall be made:

         (a)  If the amount of such adjustment shall be less than two cents
              ($.02) per Warrant Security, provided, however, that in such
              case any adjustment that would otherwise be required then to be
              made shall be carried forward and shall be made at the time of
              and together with the next subsequent adjustment which, together
              with any adjustment so carried forward, shall amount to at least
              two cents ($.02) per Warrant Security; or

         (b)  If the Exercise Price would be less than the par value per share
              of Common Stock.

         8.5 Statement on Warrant Certificate. Irrespective of any adjustments
in the Exercise Price or the number or kind of shares purchasable upon the
exercise of the Warrants, the Warrant Certificate or certificates theretofore
or thereafter issued may continue to express the same price and number and
kind of shares as are stated in the Warrants initially issuable pursuant to
this Agreement.

         9. Exchange and Replacement of Warrant Certificates. Each Warrant
Certificate is exchangeable without expense, upon the surrender thereof by the
registered Holder at the principal executive office of the Company, for a new
Warrant Certificate of like tenor and date representing in the aggregate the
right to purchase the same number of Warrant Securities in such denominations
as shall be designed by the Holder thereof at the time of such surrender. Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of any Warrant Certificate, and, in case of
loss, theft or destruction, of indemnity or security reasonably satisfactory
to it, and reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of the Warrants, if

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mutilated, the Company will make and deliver a new Warrant Certificate of like
tenor, in lieu thereof.

         10. Elimination of Fractional Interests. The Company shall not be
required to issue fractional shares of Common Stock upon the exercise of
Warrants. Warrants may only be exercised in such multiples as are required to
permit the issuance by the Company of one or more whole shares of Common
Stock. If one or more Warrants shall be presented for exercise in full at the
same time by the same Holder, the number of whole shares of Common Stock which
shall be issuable upon such exercise thereof shall be computed on the basis of
the aggregate number of shares of Common Stock purchasable on exercise of the
Warrants so presented. If any fraction of a share of Common Stock would,
except for the provisions provided herein, be issuable on the exercise of any
Warrant (or specified portion thereof), the Company shall pay an amount in
cash equal to such fraction multiplied by the then current Market Price of a
share of Common Stock. As used herein, the phrase "Market Price" at any date
shall be deemed to be the last reported sale price, or, in case no such
reported sale takes place on such day, the average of the last reported sale
prices for the last three (3) trading days, in either case as officially
reported by the principal securities exchange on which the Common Stock is
listed or admitted to trading or by The Nasdaq Stock Market's National Market
or SmallCap Market ("Nasdaq"), or, if the Common Stock is not listed or
admitted to trading on any national securities exchange or quoted by Nasdaq,
the average closing bid price as furnished by the National Association of
Securities Dealers, Inc. ("NASD") through Nasdaq or similar organization if
Nasdaq is no longer reporting such information, or if the Common Stock is not
quoted by the NASD or such similar organization, the fair market value of a
share of Common Stock as determined in good faith by resolution of the Board
of Directors of the Company, based on the best information available to it.

         11. Reservation of Securities. The Company shall at all times reserve
and keep available out of its authorized shares of Common Stock, solely for
the purpose of issuance upon the exercise of the Warrants, such number of
shares of Common Stock or other securities, properties or rights as shall be
issuable upon the exercise thereof. The Company covenants and agrees that,
upon exercise of the Warrants and payment of the Exercise Price therefor, all
shares of Common Stock and other securities issuable upon such exercise shall
be duly and validly issued, fully paid, non-assessable and not subject to the
preemptive rights of any stockholder.

         12. Notices to Warrant Holders. Nothing contained in this Agreement
shall be construed as conferring upon the Holders the right to vote or to
consent or to receive notice as a stockholder in respect of any meetings of
stockholders for the election of directors or any other matter, or as having
any rights whatsoever as a stockholder of the Company. If, however, at any
time prior to the expiration of the Warrants and their exercise, any of the
following events shall occur:

                (a) the Company shall take a record of the holders of its
         shares of Common Stock for the purpose of entitling them to receive a
         dividend or distribution payable other than in cash, or a cash
         dividend or distribution payable other than out of current or
         retained earnings, as indicated by the accounting treatment of such
         dividend or distribution on the books of the Company; or

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                (b) the Company shall offer to all the holders of its Common
         Stock any additional shares of capital stock of the Company or
         securities convertible into or exchangeable for shares of capital
         stock of the Company, or any option, right or warrant to subscribe
         therefor; or

                (c) a dissolution, liquidation or winding up of the Company
         (other than in connection with a consolidation or merger) or a sale
         of all or substantially all of its property, assets and business as
         an entirety shall be proposed;

then, in any one or more of such events, the Company shall give written notice
of such event to the Holders at least fifteen (15) days prior to the date fixed
as a record date or the date of closing the transfer books for the determination
of the stockholders entitled to such dividend, distribution, convertible or
exchangeable securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale. Such notice shall specify
such record date or the date of closing the transfer book, as the case may be.
Failure to give such notice or any defect therein shall not affect the validity
of any action taken in connection with the declaration or payment of any such
dividend, or the issuance of any convertible or exchangeable securities, or
subscription rights, options or warrants, or any proposed dissolution,
liquidation, winding up or sale.

         13. Registration Rights. The 200,000 Shares are, for purposes of this
Section 13, referred to as the "Registrable Shares".

                (a) If written demand is made by a Holder or Holders
         requesting registration of at least 100,000 Registrable Shares, then
         the Company will use all reasonable best efforts to promptly file a
         registration statement under the Securities Act of 1933, as amended
         (the "Act"), to effect the registration under the Act of the
         Registrable Shares to be registered by the selling Holders, subject
         to the other provisions hereof. The Holders will have the right to
         only one demand registration pursuant to this Section 13(a).

                (b) If at any time the Company shall determine to register any
         shares of Common Stock under the Act, other than on a Form S-8 or
         Form S-4 or the then equivalent forms, then it shall promptly send
         each Holder written notice of such determination and, if within 15
         days after receipt of such notice, Holders shall request in writing
         to include at least 100,000 Registrable Shares in the registration,
         then the Company shall use its reasonable best efforts to include in
         such registration the Registrable Shares so requested to be
         registered on the same terms and conditions as any other shares of
         Common Stock included therein, and to effect the registration of such
         Registrable Shares under the Act, subject to the other provisions
         hereof.

                (c) If a managing underwriter is participating in such
         registration and advises the Company in writing that marketing
         factors require a limitation on the number of Registrable Shares to
         be included in any registration statement filed pursuant to this
         Agreement or if the Board of Directors of the Company (the "Board")
         reasonably determines that the registration of such Registrable
         Shares would materially adversely affect an important business
         situation, transaction, or negotiation affecting the Company

                                     -6-
<PAGE>

         at the time, then such Registrable Shares may be omitted from the
         registration statement to the extent necessary to consummate the
         offering on terms reasonably acceptable to the Company and the
         managing underwriter, and the Company shall so advise each Holder.
         Additionally, if the managing underwriter advises the Company in
         writing that market factors require that the registration of the
         Registrable Shares be deferred, or if the registration of any of the
         Registrable Shares, if not deferred, would, in the reasonable opinion
         of the Board, determined reasonably and in good faith, materially and
         adversely affect an important business situation, transaction, or
         negotiation affecting the Company at the time, then the Company may
         defer the filing of such registration statement for the minimum
         number of days necessary but in no event may the filing be deferred
         for more than 120 days.

                (d) If and whenever the Company is required by the provisions
         hereof to use all reasonable best efforts to effect the registration
         of Registrable Shares under the Act, the Company will:

                   (i) Prepare and file with the United States Securities and
         Exchange Commission (the "SEC") the appropriate registration
         statement with respect to such securities and use its reasonable best
         efforts to cause such registration statement to become and remain
         effective for 90 days or until the intended distribution is
         completed, whichever first occurs;

                   (ii) Prepare and file with the SEC such amendments and
         supplements to such registration statement and the prospectus used in
         connection therewith as may be necessary to keep such registration
         statement effective for 90 days or until the intended distribution is
         completed, whichever first occurs, and to comply with the
         requirements of the Act and the rules and regulations promulgated by
         the SEC thereunder relating to the sale or other disposition of the
         securities covered by such registration statement;

                   (iii) Furnish to each selling Holder copies of a
         prospectus, including a preliminary prospectus, complying with the
         requirements of the Act;

                   (iv) Use its reasonable best efforts to register or qualify
         the Registrable Shares covered by such registration statement under
         such securities or blue sky laws as the managing underwriter for the
         offering designates; provided, however, that the Company shall not be
         required to qualify as a foreign Company in any such jurisdiction or
         be required to execute a consent to submit generally to the
         jurisdiction of the courts of such jurisdiction or to escrow any of
         its securities;

                   (v) Supply the managing underwriter and each selling Holder
         with copies of all correspondence and communications between the
         Company and the SEC relating to all registration statements,
         notifications, or offering circulars provided for hereunder and
         covering any Registrable Shares; and

                   (vi) Endeavor to cause the Company's counsel and
         accountants to furnish the managing underwriter with such documents,
         opinions, and confirmations as

                                     -7-
<PAGE>

         may be called for by the managing underwriter and which are in the
         usual form incident to and as are normally required in an
         underwritten offering.

                (e) Notwithstanding anything to the contrary contained in this
         Agreement, the Company shall not be required by this Agreement to
         register any Registrable Shares under the Act or under any state
         securities law if, in the opinion of counsel for the Company, the
         proposed sale or transfer of the Registrable Shares as to which
         registration is requested is exempt from the registration provisions
         of the Act.

                (f) Each selling Holder shall indemnify and hold harmless the
         Company and its officers, directors, and each person (if any) who
         controls the Company within the meaning of Section 15 of the Act or
         Section 20 of the Securities Exchange Act of 1934, and the Company
         shall indemnify and hold harmless each selling Holder, against any
         losses, claims, damages, or liabilities to which each selling Holder
         may become subject, insofar as such losses, claims, damages, or
         liabilities (or actions in respect thereof) arise out of or are based
         upon any untrue statement or alleged untrue statement of any material
         fact contained in the registration statement under which shares of
         the Stock are registered under the Act, or in any preliminary
         prospectus, final prospectus, or amendment or supplement to any of
         the foregoing, or arise out of or are based upon the omission or
         alleged omission to state therein a material fact required to be
         stated therein or necessary to make the statements therein not
         misleading in light of the circumstances under which they were made,
         in each case to the extent, but only to the extent, that such untrue
         statement or alleged untrue statement or omission or alleged omission
         is based upon information concerning such indemnifying party,
         furnished, in the case of each selling Holder, in writing, by or for
         the account of each selling Holder to the Company in connection with
         the preparation and filing of the registration statement. The
         indemnifying party will reimburse any legal and other expenses
         reasonably incurred by any indemnified party in connection with
         investigating or defending any such loss, claim, damage, liability,
         or action incurred by the indemnified party as a result of the
         misinformation furnished by the other party.

                (g) All costs and expenses of the Company in connection with
         any registration statement prepared and filed in accordance with this
         Agreement including (but not limited to) federal and state
         registration and filing fees, printing expenses, and the fees and
         disbursements of counsel and independent accountants and other
         experts of the Company, shall be borne by the Company to the fullest
         extent permitted by applicable law; provided, however, that the
         Company shall not be obligated to pay the fees and disbursements of
         separate counsel of each selling Holder, any underwriting commissions
         or discounts relating to each selling Holder's Registrable Shares, or
         any other costs and expenses separately incurred by each selling
         Holder.

         14. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been duly made and
sent when delivered, or mailed by registered or certified mail, return receipt
requested:

                (a) If to a registered Holder of the Warrants, to the address
         of each such Holder as shown on the books of the Company; or

                                     -8-
<PAGE>

                (b) If to the Company, to the address set forth in Section 3
         hereof or to such other address as the Company may designate by
         notice to the Holders.

         15. Supplements and Amendments. The Company and Grantee may from time
to time supplement or amend this Agreement without the approval of any Holders
of the Warrant Certificates in order to cure any ambiguity, to correct or
supplement any provision contained herein which may be defective or
inconsistent with any provisions herein, or to make any other provisions in
regard to matters or questions arising hereunder which the Company and Grantee
may deem necessary or desirable and which the Company and Grantee deem shall
not adversely affect the interests of the Holders of the Warrant Certificates.
If Grantee no longer owns any Warrants, then this Agreement may be amended by
the Company and the Holders of a majority of the then outstanding Warrants.

         16. Successors. All the covenants and provisions of this Agreement
shall be binding upon and inure to the benefit of the Company, the Holders and
their respective successors and assigns hereunder.

         17. Governing Law; Submission to Jurisdiction. This Agreement and
each Warrant Certificate issued hereunder shall be deemed to be a contract
made under the laws of the State of Texas and for all purposes shall be
construed in accordance with the laws of such State without giving effect to
the rules of such State governing the conflicts of laws.

         18. Entire Agreement; Modification. This Agreement contains the
entire understanding between the parties hereto with respect to the subject
matter hereof and may not be modified or amended except by a writing duly
signed by the party against whom enforcement of the modification or amendment
is sought.

         19. Severability. If any provision of this Agreement shall be held to
be invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provision of this Agreement.

         20. Captions. The caption headings of the Sections of this Agreement
are for convenience of reference only and are not intended, nor shall they be
construed as, a part of this Agreement and shall be given no substantive
effect.

         21. Benefits of this Agreement. Nothing in this Agreement shall be
construed to give to any person or corporation other than the Company and
Grantee and any other registered Holder(s) of the Warrant Certificates or
Warrants Securities any legal or equitable right, remedy or claim under this
Agreement; and this Agreement shall be for the sole benefit of the Company and
Grantee and any other registered Holders of Warrant Certificates or Warrant
Securities.

         22. Counterparts. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and such counterparts shall together constitute but one and
the same instrument.

         23. Representations and Warranties. The Company represents and
warrants as of the date hereof as follows: (i) the Company and each of its
material Subsidiaries (a) is duly organized, validly existing, and in good
standing under the laws of the jurisdiction of its

                                     -9-
<PAGE>

incorporation or organization, (b) has all requisite corporate or other power
and authority to own its properties and carry on its business as now being and
as proposed to be conducted, and (c) is qualified to do business in all
jurisdictions in which the nature of its business or the ownership of its
assets makes such qualification necessary and where the failure to be so
qualified would have a material adverse effect; (ii) the Company has the power
and authority and legal right to execute, deliver and perform its respective
obligations under this Agreement; and (iii) the execution, delivery, and
performance by the Company of this Agreement and compliance with the terms and
provisions hereof has been duly authorized by all requisite corporate action
on the part of the Company and does not and will not violate or conflict with,
or result in a breach (whether through notice or lapse of time) of or require
any consent under the Certificate of Incorporation or bylaws of the Company or
any amendments to any of the foregoing.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, as of the day and year first above written.

                                  ULTRAK, INC.

                                  By:___________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________

                                  ______________________________________________
                                  GEORGE K. BROADY

                                     -10-
<PAGE>

                                   EXHIBIT A
                         [FORM OF WARRANT CERTIFICATE]

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT,
(ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER
SUCH ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF
COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE
ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

                           EXERCISABLE ON OR BEFORE
                5:00 P.M., DALLAS, TEXAS TIME, JANUARY 14, 2005

 No. W-002                                           Warrants to Purchase
                                                200,000 Shares of Common Stock

WARRANT CERTIFICATE

         This Warrant Certificate certifies that george k. broady, or
registered assigns, is the registered holder of Warrants to purchase, until
January 14, 2005 (the "Expiration Date") pursuant to that certain Warrant
Agreement (the "Warrant Agreement") by and between Ultrak, Inc., a Delaware
corporation (the "Company"), and George K. Broady ("Grantee"), at 5:00 p.m.
Dallas, Texas time on the Expiration Date, 200,000 fully-paid and
non-assessable shares of common stock, $0.01 par value ("Common Stock") of the
Company, at the initial exercise price, subject to adjustment in certain
events (the "Exercise Price"), of $1.64 per share, of Common Stock upon
surrender of this Warrant Certificate and payment of the Exercise Price at an
office or agency of the Company, but subject to the conditions set forth
herein and in the Warrant Agreement dated as of January 14, 2002, by and
between the Company and Grantee. Payment of the Exercise Price shall be made
by certified or official bank check payable to the order of the Company, or
alternatively through other exercise as specified in the Warrant Agreement.

         No Warrant may be exercised after 5:00 p.m., Dallas, Texas time, on
the Expiration Date, at which time all Warrants evidenced hereby, unless
exercised prior thereto, hereby shall thereafter be void.

         The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants issued pursuant to the Warrant Agreement, which
Warrant Agreement is hereby incorporated by reference in and made a part of
this instrument and is hereby referred to for a description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the
Company and the holders (the words "holders" or "holder" meaning the
registered holders or registered holder) of the Warrants. If any term of this
Warrant Certificate conflicts with the terms of the Warrant Agreement, then
the terms of the Warrant Agreement shall control and prevail.

Exhibit A - Page 1
<PAGE>

         The Warrant Agreement provides that upon the occurrence of certain
events the Exercise Price and the type and/or number of the Company's securities
issuable thereupon may, subject to certain conditions, be adjusted. In such
event, the Company will, at the request of the holder, issue a new Warrant
Certificate evidencing the adjustment in the Exercise Price and the number
and/or type of securities issuable upon the exercise of the Warrants; provided,
however, that the failure of the Company to issue such new Warrant Certificates
shall not in any way change, alter, or otherwise impair, the rights of the
holder as set forth in the Warrant Agreement.

         Upon due presentment for registration of transfer of this Warrant
Certificate at an office or agency of the Company, a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided herein and in the Warrant
Agreement, without any charge except for any tax or other governmental charge
imposed in connection with such transfer.

         Upon the exercise of less than all of the Warrants evidenced by this
Certificate, the Company shall forthwith issue to the holder hereof a new
Warrant Certificate representing such numbered unexercised Warrants.

         The Company may deem and treat the registered holder(s) hereof as the
absolute owner(s) of this Warrant Certificate (notwithstanding any notation of
ownership or other writing hereon made by anyone), for the purpose of any
exercise hereof, and of any distribution to the holder(s) hereof, and for all
other purposes, and the Company shall not be affected by any notice to the
contrary.

         All terms used in this Warrant Certificate which are defined in the
Warrant Agreement shall have the meanings assigned to them in the Warrant
Agreement.

         IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be duly executed.

         Dated as of January 14, 2002.

                                            ULTRAK, INC.,
                                            a Delaware corporation

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

Exhibit A - Page 2
<PAGE>

                              ELECTION TO PURCHASE

         The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant Certificate, to purchase ___________ shares of
Common Stock and herewith tenders in payment for such shares of Common Stock
cash or a certified or official bank check payable to the order of
___________________________________ in the amount of $__________, all in
accordance with the terms hereof. The undersigned requests that a certificate
for such shares be registered in the name of
_____________________________________, whose address is ___________________
_____________________________, and that such Certificate be delivered to whose
address is _____________________________________________________.

Dated:____________________        Signature:____________________________________
                                           (Signature  must  conform in all
                                           respects to name of holder  as
                                           specified  on the  face  of the
                                           Warrant Certificate)

                     ____________________________________
                     ____________________________________
                       (Insert Social Security or Other
                         Identifying Number of Holder)

Election to Purchase - Page 1
<PAGE>

                                  ASSIGNMENT

            (To be executed by the registered holder if such holder
                 desires to transfer the Warrant Certificate)

         FOR VALUE RECEIVED_____________________________________________________

hereby sells, assigns and transfers unto________________________________________
________________________________________________________________________________
                 (Please print name and address of transferee)

this Warrant Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint ___________________________,
Attorney, to transfer the within Warrant Certificate on the books of the
within-named Company, with full power of substitution.

Dated:_________________________      Signature:_________________________________
                                              (Signature must conform in all
                                              respects to name of holder as
                                              specified on the face of the
                                              Warrant Certificate)

                      ____________________________________
                      ____________________________________
                       (Insert Social Security or Other
                        Identifying Number of Assignee)

Assignment -- Page 1

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