AMENDMENT NO. 2 TO THE LOAN AND SECURITY AGREEMENT
AMENDMENT NO. 2 to the Loan and Security Agreement dated as of June 30, 1999 ("Amendment No. 2")
by and between NAPCO SECURITY SYSTEMS, INC., a New York corporation having a place of business
at 333 Bayview Avenue, Amityville, New York 11701 (the "Debtor") and HSBC BANK USA F/K/A
MARINE MIDLAND BANK, having a place of business at 534 Broad Hollow Road, Melville, New York
11747 (the "Secured Party").
WHEREAS, as of May 12, 1997, Debtor and Secured Party had entered into a certain loan and security
agreement, as amended by amendment no. 1 to the loan and security agreement dated as of May 28, 1998, as
may be amended from time to time (the "Agreement");
WHEREAS, the Debtor has requested that the Secured Party extend the Termination Date, as set forth in the
Agreement and the Secured Party has agreed to do so, in the manner set forth below, provided however, that,
among other things, Debtor execute this Amendment No. 2.
NOW, THEREFORE, in consideration of the mutual promises and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the parties hereto agree as follows:
1. The definition of "Termination Date" contained in Section 1.1. of the Agreement is hereby amended to read in
its entirety as follows:
"Termination Date" shall mean the earlier to occur of (a) November 30, 2000 or, if such day shall not be a
Business Day, the next succeeding Business Day, or (b) upon the occurrence of an Event of Default.
2. As an inducement to the Bank extending the Termination Date, Debtor represents and warrants to Secured
Party that, as of the date of execution of this Amendment No. 2, (i) the representations and warranties set forth in
Article 4 of the Agreement and the representations and warranties of Debtor and any Third Party set forth in the
other Transaction Documents to which any is a party are true and correct in all respects, (ii) no event has
occurred and is continuing which constitute