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                                                                    EXHIBIT 10.Y

                          NAPCO SECURITY SYSTEMS, INC.

                         2002 EMPLOYEE STOCK OPTION PLAN

      1. Purpose of the Plan. This 2002 Employee Stock Option Plan (hereinafter
referred to as the "Plan") is intended to encourage ownership of stock of Napco
Security Systems, Inc. (hereinafter referred to as the "Corporation") by key
employees of the Corporation and its subsidiaries, if any, to attract and retain
high caliber personnel upon whose judgment, skill and initiative the success of
the Company is dependent and to provide additional incentive for them to promote
the success of the Corporation. As used in the Plan, the term "subsidiary" shall
have the same meaning as the term "subsidiary corporation" defined in Section
424(f) of the Internal Revenue Code of 1986, as amended (the "Code"). Options
granted to employees under the Plan may be either incentive stock options
("Incentive Stock Options"), within the meaning of Section 422(b) of the Code,
or options that do not constitute Incentive Stock Options.

      2. Scope of the Plan. Three Hundred Forty Thousand (340,000) shares of the
Corporation's Common Stock, par value $.01 per share (hereinafter referred to as
"Common Stock"), shall be available and reserved for issue under the Plan
subject, however, to the provisions of Section 11 hereof. Shares issued under
the Plan may be, in whole or in part, as determined by the Committee, authorized
but unissued shares of Common Stock or treasury shares. If an option should
expire or terminate for any reason without having been exercised in full, the
unpurchased shares that were subject thereto shall, unless the Plan shall have
terminated, become available for other options under the Plan. Common Stock
shall not be issued in respect of an option granted under the Plan unless the
exercise of such option and the issuance and delivery of shares of Common Stock
pursuant thereto shall comply with all relevant provisions of law, including the
Securities Act of 1933, as amended, the rules and regulations thereunder, the
Securities Exchange Act of 1934, as amended, the rules and regulations
thereunder, and the requirements of any stock exchange upon which the Common
Stock may then be listed.

      3. Administration of the Plan. The Plan shall be administered by the
Compensation/Stock Option Committee (hereinafter sometimes referred to as the
"Committee") of the Board of Directors of the Corporation. The Committee shall
be composed of two or more persons who shall be designated by the Board to
administer the Plan. Each member of the Committee, while serving as such, shall
be a member of the Board and shall be a "non-employee director" within the
meaning of Rule 16b-3 under the Securities and Exchange Act of 1934.

            (a)   The Committee shall have the full power to grant options under
                  the Plan, to construe and interpret the Plan, and to establish
                  rules and regulations and perform all other acts it believes
                  reasonable and proper, including the authority to delegate
                  responsibilities to others to assist in administering the
                  Plan.

            (b)   The determination of those eligible to receive options, and
                  the amount, type and terms and conditions of each Stock Option
                  shall rest in the sole discretion of the Committee, subject to
                  the provisions of the Plan.

      4. Eligibility. Options may be granted only to valued key employees
(including officers and directors who are employees) of the Corporation or any
subsidiary; provided, however, that no option shall be granted hereunder to any
person who owns more than 10% of the Common Stock determined in accordance with
the provisions of Section 422(b)(6) of the Code unless the Option meets the
requirements of Section 422(c)(5) of the Code.
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      5. Option Price. The purchase price to be paid for Common Stock issued
pursuant to the exercise of any option granted under the Plan shall be not less
than the fair market value of such stock on the date the option is granted as
provided in Section 13 hereof (but in no event less than the par value of the
Common Stock), and shall not thereafter be subject to reduction except as
provided in Section 11 hereof; provided, however, that the purchase price to be
paid for Common Stock issued pursuant to an option granted to an individual who,
at the time of grant, owns stock possessing more than ten percent of the total
combined voting power of all classes of stock of the Corporation or its
subsidiaries, as described in Section 422(b)(6) of the Code, shall, as provided
by Section 422(c)(5) of the Code, be not less than 110% of the fair market value
of the Common Stock. For purposes under the Plan, the fair market value of a
share of Stock on a particular date shall be equal to the last reported sales
price of the Common Stock (i) reported by the National Market System of NASDAQ
on that date or (ii) if the Common Stock is listed on a national stock exchange,
reported on the stock exchange composite tape on that date; or, in either case,
if no prices are reported on that date, on the last preceding date on which such
price of the Common Stock is so reported. If the Common Stock is traded over the
counter at the time a determination of its fair market value is required to be
made hereunder, its fair market value shall be deemed to be equal to the average
between the reported high and low or closing bid and asked prices of Common
Stock on the most recent date on which Common Stock was publicly traded. In the
event Common Stock is not publicly traded at the time a determination of its
value is required to be made hereunder, the determination of its fair market
value shall be made by the Committee in such manner as it deems appropriate.

      6.    Term of Options. The Committee shall establish the term of any
            option granted under the Plan provided however that no option shall
            be exercisable after the expiration of 10 years from the date of
            grant of the option.

      7.    Non-Transferability of Options. An option granted under the Plan
            shall by its terms not be transferable and an option may be
            exercised, during the lifetime of the holder of the option, only by
            such holder; provided however, an option may be transferred by will
            or the laws of descent and distribution, to the estate of a deceased
            employee, and such option may be exercised by the estate's legal
            representative within three (3) months of the date of death. More
            particularly, but without limiting the generality of the foregoing,
            and subject to the preceding sentence, an option may not be
            assigned, transferred, pledged, or hypothecated in any way (whether
            by operation of law or otherwise), and will not be subject to
            execution, attachment or similar process. Any attempted assignment,
            transfer, pledge, hypothecation or other disposition of any option
            contrary to the provisions of the Plan, and any levy of any
            attachment or similar process upon an option will be null and void
            and without effect.

      8.    Annual Limitation on Options Granted. To the extent that the
            aggregate fair market value of stock with respect to which incentive
            stock options (determined without regard to this subsection) are
            exercisable for the first time by any individual during any calendar
            year (under all plans of the Corporation and its subsidiaries)
            exceeds One Hundred Thousand Dollars ($100,000) (or such other limit
            as may be in effect from time to time under the Code), such options
            shall be treated as options which are not incentive stock options.

      9.    Exercise of Options. Except as hereinafter provided in this Section
            9 and in Section 10, options may be exercised within the year of
            grant with respect to no more than twenty percent (20%) of the total
            number of shares of Common Stock subject to such grant. Thereafter,
            during each succeeding year beginning on an anniversary date,
            options with respect to an additional twenty percent (20%) of the
            total number of shares subject to a grant may be exercised. However,
            no option shall be exercisable after the expiration of the term of
            the option. Moreover, except as provided herein, an option shall not
            be exercisable unless the holder thereof shall, at the time of
            exercise, be an employee of the Corporation or a subsidiary.

            Notwithstanding anything herein to the contrary, such holder's
options will vest and become immediately exercisable in full upon a change in
control. For purposes of this Plan, a "change in control" shall mean:


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                  (i) either (x) any merger or consolidation of the Corporation
            into or with another corporation, (y) the acquisition by another
            person, group or entity after the date hereof of beneficial
            ownership of more than 25% of the Common Stock of the Corporation
            (such person, group or entity reporting, or being required to
            report, the acquisition pursuant to Section 13 of the Securities
            Exchange Act of 1934), or (z) the commencement of a non-issuer
            tender offer seeking to acquire more than 25% of the Common Stock of
            the Corporation, or

                  (ii) any sale by the Corporation of substantially all of the
            assets and business of the Corporation for cash, stock, or any
            combination thereof, unless, immediately after such sale, the
            holders of Common Stock of the Corporation immediately prior to such
            sale own more than 50% or more of the voting capital stock of the
            acquiring corporation or, if the acquiring person or entity is not a
            corporation, more than 50% of the voting equity interests of such
            acquiring person or entity, or

                  (iii ) if a majority of Corporation's Board of Directors
            consists of individuals who were not Incumbent Directors. "Incumbent
            Directors" shall mean directors who either (A) are directors of the
            Corporation as of the date hereof, or (B) are elected, or nominated
            for election, to the Board with the affirmative votes of at least a
            majority of the Incumbent Directors at the time of such election or
            nomination.

            The purchase price of any shares as to which an option shall be
exercised shall be paid in full at the time of exercise. Payment may be made:

                  (i) in United States dollars by good check, bank draft or
            money order payable to the order of the Corporation; or

                  (ii) at the discretion of the Committee as set forth in the
            Option grant or at any time prior to the exercise by an Option
            holder by the transfer to the Corporation of shares of Common Stock
            owned by the holder of the option having an aggregate fair market
            value on the date of exercise equal to the purchase price or the
            portion thereof being paid; or

                  (iii) at the discretion of the Committee and subject to any
            restrictions or conditions as it deems appropriate (including any
            restrictions as may be set forth in Rule 16b-3 under the Securities
            and Exchange Act of 1934), by electing to have the Corporation
            withhold from the shares issuable on exercise of the option such
            number of shares of Common Stock as shall have an aggregate fair
            market value on the date of exercise equal to the purchase price or
            the portion thereof being paid; or

                  (iv) at the discretion of the Committee by a combination of
            (i) and (ii) or (i) and (iii) above.

The Committee shall determine the procedures for the use of Common Stock in
payment of the purchase price and may impose such limitations and prohibitions
on such use as it deems appropriate.

      The holder of an option shall not have any of the rights of a stockholder
with respect to the shares covered by his option until such shares shall have
been issued to him (as evidenced by the appropriate entry on the books of a duly
authorized transfer agent of the Corporation) upon the purchase of such shares
upon exercise of the option.

      Any holder who disposes of shares of Common Stock acquired on the exercise
of an Incentive Stock Option by sale or exchange either (a) within two years
after the date of the grant of the Option under which such shares were acquired
or (b) within one year after the acquisition of such shares, shall notify the
Corporation in writing of such disposition and of the amount realized upon such
disposition promptly after the disposition.


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      10.   Exercise Upon Cessation of Relationship With Corporation. Except as
            provided in Sections 7 and 9 above, the right of a holder of an
            option to exercise such option shall terminate immediately upon
            voluntary termination of service as an employee or dismissal,
            disability, retirement, death or otherwise. Option agreements may
            contain such provisions as the Committee shall approve with
            reference to the effect of approved leaves of absence.

      11.   Adjustments. (a) In the event of a recapitalization, stock split,
            stock combination, stock dividend, exchange of shares, or a change
            in the corporate structure or shares of the Corporation, or similar
            event, the Board of Directors upon recommendation of the Committee
            shall make appropriate adjustments in the kind or number of shares
            which may be issued upon exercise of options and in the kind or
            number of shares issuable upon exercise of options theretofore
            granted and in the exercise price of such options.

            (b) If the Corporation shall be a party to a merger or consolidation
or shall sell substantially all its assets, each outstanding option shall
pertain and apply to the securities and/or property which a holder of the number
of shares of Common Stock subject to the option immediately prior to such
merger, consolidation, or sale of assets would be entitled to receive in such
merger, consolidation or sale of assets.

      12. Effectiveness of the Plan. The Plan shall become effective as of
October 24, 2002, but shall be subject to approval by the holders of Common
Stock at a meeting of stockholders of the Corporation duly called and held no
later than twelve months after the date of adoption of the Plan by the Board of
Directors.

      13.   Time of Granting Options. The date of grant of an option under the
            Plan shall, for all purposes, be the date on which the Board of
            Directors makes the determination granting such option; and no grant
            shall be deemed effective under the Plan prior to such date. Notice
            of the determination shall be given to each employee to whom an
            option is so granted within a reasonable time after the date of such
            grant.

      14.   Termination and Amendment of the Plan. The Plan shall terminate ten
            (10) years from the date on which it is adopted by the Board of
            Directors. Prior thereto, the Board of Directors may terminate the
            Plan at any time; provided, however, that any such termination shall
            not affect any options then outstanding under the Plan. No options
            under the Plan may be granted after termination of the Plan.

      The Board of Directors from time to time may make such modifications or
amendments of the Plan and, with the consent of the holder of an option, of the
terms and conditions of his option, as it shall deem advisable, but may not,
without further approval of the stockholders of the Corporation, except as
provided in Section 11 hereof (a) increase the maximum number of shares which
shall be available and reserved for issue under the Plan, or (b) change the
employees or class of employees eligible to receive options, or (c) extend the
term of the Plan beyond the period provided in this paragraph.

      Neither the termination nor any modification or amendment of the Plan
shall, without the consent of the holder of an option theretofore granted under
the Plan, adversely affect the rights of such holder with respect to such
option.

      15. Section 16 of the Securities Exchange Act of 1934. It is intended that
the Plan and any grant of an option made to a person subject to Section 16 of
the 1934 Act meet all requirements of Rule 16b-3. If any provision of the Plan
or any such option would disqualify the Plan or such option under, or would
otherwise not comply with, Rule 16b-3, such provision or option shall be
construed or deemed amended to conform to Rule 16b-3.

Dated as of: October 24, 2002

                                        NAPCO SECURITY SYSTEMS, INC.

                                        By: /s/ Richard Soloway
                                           Richard Soloway, President


ATTEST:

By: /s/ Kevin S. Buchel
   Kevin S. Buchel, Senior Vice President


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