Document:

Exhibit 10.17

 Exhibit 10.17 
 AMENDED AND RESTATED AFFILIATE AGREEMENT 
 THIS AFFILIATE AGREEMENT (the
“Agreement”), effective as of March 30, 2009, between Union Bankshares Corporation, a Virginia corporation (“UBSH”), and each of the individuals or entities listed on Schedule A attached hereto (individually, a
“Stockholder” and collectively, the “Stockholders”). 
 WHEREAS, the Boards of Directors of UBSH and First
Market Bank, FSB, a federally chartered savings bank (“FMB”), have approved the business combination transaction whereby FMB will merge with and into a direct wholly-owned subsidiary of UBSH (the “Merger”) organized to facilitate
the transaction (the “Resulting Bank”), and thereafter Union Bank and Trust Company, a direct wholly-owned banking subsidiary of UBSH, will merge with and into the Resulting Bank at such time as is reasonably practicable after the Merger,
with the Resulting Bank being the surviving bank, pursuant to the terms and conditions of the First Amended and Restated Agreement and Plan of Reorganization, dated as of March 30, 2009, between UBSH and FMB, and a related Plan of Merger
(together referred to herein as the “Merger Agreement”); 
 WHEREAS, each of the Stockholders is the beneficial or
registered owner of, and has the right to vote and dispose of the number of shares of FMB Common Stock or FMB Series A Preferred Stock (such terms as defined in the Merger Agreement) set forth opposite such Stockholder’s name on Schedule A (the
“Shares”); and 
 WHEREAS, as a condition and inducement to UBSH entering into the Merger Agreement, the Stockholders,
severally and not jointly, have agreed to support the Merger as provided in this Agreement. 
 NOW, THEREFORE, in consideration
of the covenants, representations, warranties and agreements set forth herein and in the Merger Agreement, and intending to be legally bound hereby, the parties hereto agree as follows: 

 

	 	1.	Agreement to Vote. 

 At such time as FMB conducts a meeting of its stockholders, including any adjournment or postponement thereof or in any other circumstances upon which a vote, consent or other approval is sought to
approve the Merger Agreement, each Stockholder, severally and not jointly, agrees to vote or cause to be voted all of such Stockholder’s Shares in favor of the Merger Agreement, unless (i) UBSH is in material default with respect to any
covenant, representation, warranty or agreement with respect to it contained in the Merger Agreement, (ii) UBSH fails to recommend adoption of the Merger Agreement by its stockholders or withdraws, modifies or qualifies in any manner adverse to
FMB such recommendation or (iii) UBSH stockholders fail to approve the Merger Agreement. 

  
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	 	2.	Covenants of Stockholders. 

Each Stockholder, severally and not jointly, covenants as follows: 

(a) Restrictions on Transfer. Until the earlier of (i) the consummation of the Merger or (ii) the termination of the
Merger Agreement in accordance with its terms, the Stockholder will not pledge, hypothecate, grant a security interest in, sell, transfer or otherwise dispose of or encumber any of the Shares owned by such Stockholder and will not enter into any
agreement, arrangement or understanding (other than a proxy for the purpose of voting such Stockholder’s Shares in accordance with Section 1 hereof) which would during that term restrict, establish a right of first refusal to or otherwise
relate to the transfer or voting of the Shares owned by such Stockholder. 
 (b) Other Acquisition Proposals. Until the
earlier of (i) the consummation of the Merger or (ii) the termination of the Merger Agreement in accordance with its terms, the Stockholder will not directly or indirectly vote any Shares, or cause or permit any of the Shares to be voted,
in favor of any Acquisition Transaction (as defined in the Merger Agreement) other than the Merger. 
 (c) No Breach.
None of the execution and delivery of this Agreement nor the consummation by the Stockholder of the transactions contemplated hereby will result in a violation of, or a default under, or conflict with, any contract, loan and credit arrangements,
Liens (as defined in Subparagraph 2(d) below), trust, commitment, agreement, understanding, arrangement or restriction of any kind to which the Stockholder is a party or bound or to which the Shares owned by the Stockholder are subject. 

(d) No Liens. The Stockholder’s Shares and the certificates representing the Stockholder’s Shares are now, and at all
times during the term hereof will be, held by the Stockholder, or by a nominee or custodian for the benefit of such Stockholder, free and clear of all pledges, liens, security interests, claims, proxies, voting trusts or agreements, understandings
or arrangements or any other encumbrances whatsoever (a “Lien”), except for (i) any Liens arising hereunder, and (ii) Liens, if any, which have been disclosed on Schedule B attached hereto and which will be released within a
reasonable period of time after the closing of the Merger. 
 (e) Additional Shares. The provisions of Section 1 and
Subparagraphs (a) through (d) of this Section 2 shall apply to all Shares currently owned and hereafter acquired except for shares of FMB Capital Stock (as defined in the Merger Agreement) held or acted upon in a fiduciary capacity,
which shall not be subject to those provisions. 
  

	 	3.	No Prior Proxies. 

 Each
Stockholder, severally and not jointly, represents, warrants and covenants that any proxies or voting rights previously given in respect of the Stockholder’s Shares are not irrevocable, and that any such proxies or voting rights are hereby
irrevocably revoked. 

  
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	 	4.	Certain Events. 

 Each
Stockholder, severally and not jointly, agrees that this Agreement and the obligations hereunder shall attach to the Stockholder’s Shares and shall be binding upon any person or entity to which legal or beneficial ownership of such
Stockholder’s Shares shall pass, whether by operation of law or otherwise, including the Stockholder’s successors or assigns. In the event of any stock split, stock dividend, merger, exchange, reorganization, recapitalization or other
change in the capital structure of FMB affecting the Shares, or the acquisition of additional securities of FMB, the number of Shares subject to the terms of this Agreement shall be if appropriately adjusted, and this Agreement and the obligations
hereunder shall attach to any additional securities of FMB issued to or acquired by the Stockholder. 
  

	 	5.	Securities Act of 1933. 

Each Stockholder, severally and not jointly, agrees not to sell, transfer or otherwise dispose of the shares of Continuing Corporation
Common Stock (as defined in the Merger Agreement) which such Stockholder will receive in connection with the Merger, unless such sale, transfer or disposition (i) if made pursuant to the Required Registration under the Registration Rights
Agreement (as defined in the Merger Agreement), complies with the volume limitations set forth in Rule 144(e) promulgated by the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the
“Securities Act”) even if the Stockholder is not required to comply with such volume limitations, (ii) is made in connection with an Underwritten Demand Registration pursuant to the Registration Rights Agreement (as defined in the
Merger Agreement), (iii) is a bona fide gift transaction, (iv) is exempt from registration under the Securities Act, (v) is a pledge to secure an obligation of such Stockholder, or (vi) is a transfer to an FMB Affiliate (as
defined in the Merger Agreement) of the Stockholder. In connection with any sale, transfer or disposition identified in clauses (iii) through (vi) in the preceding sentence, at the time a Stockholder (or his or its representative) presents
to UBSH or its transfer agent, as the case may be, certificate(s) representing shares of Continuing Corporation Common Stock, the Stockholder shall also present such documents identifying the type of sale, transfer or disposition as may be necessary
for UBSH or its transfer agent to assist in effecting such transaction. 
  

	 	6.	Capacity Only as a Stockholder. 

 This Agreement relates solely to the capacity of each Stockholder as a stockholder or other beneficial owner of the Shares and shall not affect or prevent the exercise by such Stockholder of his
responsibilities as a director or officer of FMB. The term “Shares” shall not include any securities beneficially owned by the Stockholder as a trustee or fiduciary, and this Agreement is not in any way intended to affect the exercise by
the Stockholder of its or his fiduciary responsibility in respect of any such securities. 

  
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	 	7.	Termination. 

 This
Agreement shall terminate upon the termination of the Merger Agreement. If this Agreement is terminated, it shall forthwith become null and void; and there shall be no liability or obligation on the part of any Stockholder, or FMB or UBSH or their
respective officers or directors, except that nothing in this Section 7 shall relieve any party hereto from any liability for breach of this Agreement before such termination. 

 

	 	8.	Specific Performance. 

The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed
by the applicable party hereto in accordance with their specific terms or were otherwise breached. Each of the parties hereto shall be entitled to an injunction or injunctions to prevent breaches of this Agreement by the other and to enforce
specifically the terms and provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other remedy to which it is entitled at law or in equity. Each party hereto waives the posting of any bond
or security in connection with any proceeding related thereto. 
  

	 	9.	Amendments. 

 This
Agreement may not be modified, amended, altered or supplemented except by execution and delivery of a written agreement by all of the parties hereto. 
  

	 	10.	Governing Law. 

 This
Agreement shall in all respects be governed by and construed in accordance with the laws of the Commonwealth of Virginia without regard to the conflict of law principles thereof. 

 

	 	11.	Benefit of Agreement; Assignment. 

 This Agreement shall be binding upon and inure to the benefit of, and shall be enforceable by, the parties hereto and their respective personal representatives, successors and assigns, except that the
parties hereto may not transfer or assign any of their respective rights or obligations hereunder without the prior written consent of the other parties. 
  

	 	12.	Counterparts. 

 This
Agreement may be executed in one or more counterparts, and by the different parties in separate counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. 

[Signatures on following page] 

  
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 IN WITNESS WHEREOF, Union Bankshares Corporation and each of the Stockholders have caused
this Agreement to be duly executed as of the day and year first above written. 
  

			
	 UNION BANKSHARES CORPORATION

		
	 By:
	 	 /s/ G. William Beale

		 	 G. William Beale

		 	 President and Chief Executive Officer

	
	 STOCKHOLDERS

	
	 /s/ James E. Ukrop

	 James E. Ukrop

	
	 /s/ Robert S. Ukrop

	 Robert S. Ukrop

	
	 /s/ James E. Ukrop

	 Ukrop’s Services, L.C.

	
	 /s/ James E. Ukrop

	 Ukrop’s Thrift Holdings, Inc.

	
	 /s/ Richard R. Whitt, III

	 Markel Corporation

  
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 SCHEDULE A 

 

			
	 Name
	  	Class A
Common Stock
	 James E. Ukrop
	  	44.545
	 Robert S. Ukrop
	  	44.545
	 Ukrop’s Services, L.C.
	  	20.000
	 Markel Corporation
	  	435.041
		  	 
	 Total
	  	544.131

  

			
	 Name
	  	Class B
Common Stock
	 Ukrop’s Thrift Holdings, Inc.
	  	490
	 Total
	  	490

  

			
	 Name
	  	Series A
Preferred 
Stock
	 Markel Corporation
	  	100
	 Total
	  	100

  
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 SCHEDULE B 
 Liens 
 [Not applicable] 

  
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 AMENDMENT NO. 1 TO THE 

AMENDED AND RESTATED AFFILIATE AGREEMENT 
 THIS AMENDMENT NO. 1 (the “Amendment”), dated November 15, 2010, to the Amended and Restated Affiliate Agreement, effective as of March 30, 2009 (the “Agreement”), between
Union First Market Bankshares Corporation, a Virginia corporation and successor to Union Bankshares Corporation (“UBSH”), and each of the individuals or entities listed on Schedule A to the Agreement (individually, a
“Stockholder” and collectively, the “Stockholders”). 
 WHEREAS, the parties to this Amendment entered into
the Agreement in connection with the business combination between UBSH and First Market Bank, FSB, a federally chartered savings bank (“FMB”), and now wish to amend the Agreement on the terms and conditions set forth herein. 

NOW, THEREFORE, in consideration of the covenants, representations, warranties and agreements set forth in the Agreement, and intending
to be legally bound hereby, the parties hereto agree to amend the Agreement as follows: 
  

	 	1.	Certain Successors or Assigns. 

 UBSH and each Stockholder, severally and not jointly, agree that the Agreement and the obligations under the Agreement shall not be binding on the sons or daughters of James E. Ukrop and Robert S. Ukrop,
respectively, and the shares of UBSH common stock owned by such individuals. 
  

	 	2.	Capacity. 

 UBSH and each
Stockholder, severally and not jointly, acknowledge and agree that James E. Ukrop, Robert S. Ukrop and their immediate family members are not to be considered a “group” for the purposes of federal securities laws. 

 

	 	3.	Termination. 

 The
Agreement shall terminate on February 1, 2013, which is the third anniversary of the consummation of the Merger. At and after the date the Agreement is terminated, it shall forthwith become null and void; and there shall be no liability or
obligation on the part of any Stockholder, or FMB or UBSH or their respective officers or directors, except that nothing in this Section 3 shall relieve any party hereto from any liability for breach of the Agreement before such termination.

  

	 	4.	Defined Terms. 

Capitalized terms used but not defined in this Amendment and defined in the Agreement shall have the same meanings as set forth in the
Agreement. 

  
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	 	5.	Savings Clause. 

 In all
other respects, the Agreement shall remain in full force and effect. 
  

	 	6.	Counterparts. 

 This
Amendment may be executed in one or more counterparts, and by the different parties in separate counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. 

[Signatures on following page] 

  
 2 

 IN WITNESS WHEREOF, the undersigned parties have caused this Amendment No. 1 to the
Affiliate Agreement to be duly executed as of the day and year first above written. 
  

			
	UNION FIRST MARKET
	BANKSHARES CORPORATION
		
	 By:
	 	 /s/ G. William Beale

		 	G. William Beale
		 	Chief Executive Officer

			
	
	STOCKHOLDERS
	
	 /s/ James E. Ukrop

	James E. Ukrop
	
	 /s/ Robert S. Ukrop

	Robert S. Ukrop
	
	UKROP’S SERVICES, L.C.
		
	 By:
	 	 /s/ James E. Ukrop

		
	 Name:
	 	 James E. Ukrop

		
	 Title:
	 	 Manager

	
	UKROP’S THRIFT HOLDINGS, INC.
		
	 By:
	 	 /s/ James E. Ukrop

		
	 Name:
	 	 James E. Ukrop

		
	 Title:
	 	 Chairman

	
	MARKEL CORPORATION
		
	By:	 	 /s/ Thomas S. Gayner

		
	 Name:
	 	 Thomas S. Gayner

		
	 Title:
	 	 President and Chief Investment Officer

  
 3Sun Hydraulics Corporation Employee Stock Purchase Plan.

 Exhibit 10.14 
 SUN HYDRAULICS CORPORATION 
 EMPLOYEE STOCK PURCHASE PLAN 

 

	1.	PURPOSES  

The Sun Hydraulics Corporation Employee Stock Purchase Plan (the “Plan”) is intended to provide employees of Sun Hydraulics
Corporation, a Florida corporation (the “Company”) and its Subsidiaries with an opportunity to acquire shares of the Company’s Common Stock at an advantageous price, with savings accumulated through payroll deductions. It is the
intention of the Company that the Plan be an “employee stock purchase plan” under Section 423 of the Code. The provisions of the Plan shall, accordingly, be construed in a manner consistent with the requirements of that section of the
Code. 
  

	2.	DEFINITIONS 

  

	 	A.	“Agent” means the firm appointed by the Company’s Board of Directors to carry out the functions assigned to the Agent. 

 

	 	B.	“Board of Directors” means the Company’s Board of Directors. 

 

	 	C.	“Closing Market Price” means the last sale price of the Common Stock as reported on the Nasdaq National Market (or any other exchange or quotation system, if
applicable) on the date specified; or if no sales occurred on such day, at the last sale price reported for the Common Stock; but if there should be any material alteration in the present system of reporting sales prices of such Common Stock, or if
such Common Stock should no longer be listed on the Nasdaq National Market (or other exchange or quotation system), or if the last sale price reported shall be on a date more than 30 days from the date in question, the market value of the Common
Stock as of a particular date shall be determined in such a method as shall be specified by the Plan’s Agent. 

  

	 	D.	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	 	E.	“Common Stock” means the Company’s common stock, par value $.001 per share, as traded on the Nasdaq National Market. 

 

	 	F.	“Compensation” means cash compensation before any payroll deductions for taxes or any other purpose, paid by the Company or a Subsidiary to a Participant in
respect of the service of such Participant to the Company or a Subsidiary during an Offering Period. This amount shall be deemed to include any amount that the Participant has elected to defer for federal income tax purposes under any 401(k) savings
plan, cafeteria plan or deferred compensation plan maintained by the Company or a Subsidiary. Compensation shall not include any amount paid to the Participant that (i) is paid during the relevant Offering Period under any employee pension
benefit plan (as defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); (ii) is calculated as an excess, incentive compensation or bonus amount; and (iii) except as otherwise
provided in the preceding sentence, is not included in the income of the Participant for federal income tax purposes. 

	 	G.	“Enrollment Date” means August 1, 2001, and July 1 of any year thereafter. 

 

	 	H.	“Offering Date” means August 1, 2001, and the first day of any calendar quarter thereafter. 

 

	 	I.	“Offering Period” means the period from August 1, 2001 through September 30, 2001, and thereafter, the three-month period commencing on any Offering
Date after the first Offering Date and ending on the Purchase Date. 

  

	 	J.	“Option” means the right of a Participant to acquire Common Stock pursuant to Plan provisions. 

 

	 	K.	“Participant” means an eligible employee who has authorized payroll deductions for the purchase of Common Stock under the Plan and has an account maintained
by the Agent, containing shares of Common Stock and/or Proceeds. 

  

	 	L.	“Proceeds” means the total amount of cash accumulated for the benefit of a Participant during a single Offering Period, comprised of the aggregate of the
payroll deductions taken from the Participant’s Compensation during such Offering Period together with earnings thereon and dividends paid on shares of Common Stock beneficially owned by the Participant. 

 

	 	M.	“Purchase Date” means the last Trading Day of each Offering Period. 

 

	 	N.	“Subsidiary” means a corporation that is a subsidiary of the Company within the meaning thereof as stated in Code Section 424(f). Any Subsidiary located
outside the United States shall not participate in the Plan unless designated by the Board of Directors to participate. 

  

	 	O.	“Trading Day” means any day that the principal stock exchange or other national market upon which the Common Stock is traded is open for business.

 Wherever appropriate in this Plan the singular shall include the plural; the masculine, the
feminine; and vice versa. 
  

	3.	ELIGIBILITY 

 All employees of the Company who have been employed for at least three (3) months as of the Enrollment Date shall be eligible to participate in the Plan, provided that no employee shall be eligible
if such employee: 
  

	 	A.	 is a Highly Compensated Employee [within the meaning of Section 414(q) of the Code] of the Company who owns, immediately after any Option is
granted, stock 

	 	 
possessing five percent (5%) or more of the total combined voting power or value of all classes of Company stock, applying the rules of Code Section 424(d) in determining stock
ownership, or 

  

	 	B.	is an employee whose customary employment is twenty hours or less per week, or whose customary employment is for not more than five months in any calendar year.

 In addition, all employees of each Subsidiary shall be eligible to participate in the Plan to the extent they
satisfy the requirements set forth in the preceding paragraph. 
  

	4.	EMPLOYEE PARTICIPATION AND PAYROLL DEDUCTIONS 

 

	 	A.	An eligible employee shall become a Participant in the Plan by completing and filing with the Company at least 20 days prior to the Enrollment Date an authorization for
a payroll deduction on the form provided by the Company, together with instructions to use the deductions to purchase shares of Common Stock under the Plan. The Participant shall choose a deduction in a whole percentage from 1% to 15%. As of each
pay day during each Offering Period, the Company will deduct the specified amount from the Compensation payable to each Participant. The Company will hold each Participant’s Proceeds in non-interest bearing accounts until each
Participant’s proceeds are used to purchase shares. The Agent will perform the record keeping function under the Plan, assuring that the Agent, from the information provided to it by the Company, will account for each Participant’s
deductions and maintain each Participant’s account. A Participant may not make any separate cash payment into such account. 

  

	 	B.	On each Offering Date, each Participant shall be granted the right to purchase on the next Purchase Date such number of shares of Common Stock as may be purchased by
the Participant’s Proceeds accumulated during the preceding Offering Period. The maximum number of shares of Common Stock a Participant may purchase under this Plan during any Offering Period shall be limited to 2,500 shares.

  

	 	C.	No Participant, however, may be granted the right to purchase shares of Common Stock under all employee stock purchase plans of the Company subject to Section 423
of the Code where the accrual is at a rate that exceeds $25,000 of the Common Stock’s fair market value, determined at the time the option is granted, for any one calendar year in which an option is outstanding for any part of the year.

  

	 	D.	A Participant may not increase or reduce the amount of Participant’s payroll deductions until the next Enrollment Date, except Participant may reduce the amount of
Participant’s payroll deductions to 0% as described in Section 7. A Participant shall be deemed to have elected to purchase all shares able to be purchased with the Proceeds on the applicable Purchase Date. 

	5.	OPTION PRICE 

 The price to Participants for each share to be purchased on a Purchase Date shall be the lesser of 
  

	 	A.	eighty-five percent (85%) of the Closing Market Price on the Offering Date, or 

 

	 	B.	eighty-five percent (85%) of the Closing Market Price on the Purchase Date. 

 

	6.	METHOD OF PURCHASE 

 

	 	A.	On each Purchase Date the Agent shall cause all Participants’ Proceeds, together with applicable Company contributions during the preceding Offering Period, if
any, to be applied to the purchase of Common Stock from the Company. 

  

	 	B.	As of the Purchase Date, the account of each Participant shall be credited with a number of shares of Common Stock that were able to be purchased with that
Participant’s Proceeds. 

  

	7.	WITHDRAWALS  

 Prior to any Purchase Date, a Participant may give written notice to the Company or its agent of an intent to reduce the amount of payroll deductions to 0% and to withdraw the entire cash balance and
earnings accumulated during the Offering Period preceding the said Purchase Date. The written notice shall effectuate a withdrawal only if the Agent has not purchased shares for the account of the notifying Participant. Such withdrawal will
terminate the Participant’s right to exercise any Options for that Offering Period. A Participant who withdraws shall not participate again in the Plan unless and until a new Enrollment Form is filed at least 20 days prior to the next
Enrollment Date. 
  

	8.	TERMINATION OF EMPLOYMENT 

As soon as administratively practicable after the termination of a Participant’s employment with the Company for any reason other
than death, the Participant’s Proceeds accumulated during the Offering Period in which his employment terminated will be refunded, and any shares of Common Stock held by the Agent will be distributed in kind. As an alternative to the latter,
the terminated Participant may request that the Agent, at the Participant’s expense, sell the Common Stock in the account and forward the net proceeds to the Participant. 

 

	9.	RIGHTS AS A SHAREHOLDER; DIVIDENDS; HOLDING AND
ISSUANCE OF SHARES 

  

	 	A.	 A Participant shall have no rights as a shareholder with respect to any shares of Common Stock offered hereunder until completion of payment therefor.
Shares purchased pursuant to the Plan initially will be registered in the name of the Agent as custodian for the account of the Participant entitled thereto. In regard to shares paid

	 	 
for and in a Participant’s account, the Participant shall have all rights accruing to an owner of record of such shares, including voting rights and the right to receive dividends.

  

	 	B.	The Agent shall receive the dividends payable on the shares in its custody and shall credit to the Proceeds account of each Participant as beneficial owner of a certain
number of shares the amount of dividends attributable thereto. In the event that the Participant has not authorized payroll deductions during the Offering Period in which the Agent receives the Participant’s dividends, unless requested
otherwise by the Participant on notice from the Agent, the Agent shall re-establish a Proceeds account to contain these dividends and earnings thereon. In the event that the Participant’s shares have been distributed when dividends are
received, the Agent shall return said dividends to the Common Stock’s transfer agent for reissuance to the distributee of the shares. 

  

	 	C.	Until such time as the Plan has been approved by the Company’s shareholders, the stock certificates representing all of the shares purchased on behalf of
Participants under this Plan shall be retained by the Agent, and Participants may not withdraw or sell such shares. 

  

	 	D.	After the Plan has been approved by the Company’s shareholders, the stock certificate or certificates representing the shares purchased on behalf of a Participant
on each Purchase Date shall be retained by the Agent until such time as the Participant may request the Agent in writing to distribute such shares to the Participant. The Company and the Agent may establish such rules and procedures as they, in
their discretion, determine to be necessary or desirable with respect to distributions of shares purchased under this Plan, including any rules imposing limits on such distributions or restricting the timing or frequency of such distributions they
may determine to be suitable. 

  

	10.	NONTRANSFERABLITY  

 Neither payroll deductions credited to the account of a Participant nor any Options to purchase shares of common Stock under the Plan may be assigned, transferred, or alienated, and Options must be
exercised only by the Participant during his lifetime. 
  

	11.	BENEFICIARY DESIGNATION AND RIGHTS  

A Participant may file with the Company’s Chief Financial Officer, or such delegee appointed by the Chief Financial Officer, a
written designation of beneficiary, or a revision thereof. In the absence of such designation, or if the named beneficiary predeceased the Participant, the Participant’s estate shall be deemed to be the beneficiary. In the event of the
Participant’s death, the Agent shall apply the Proceeds to the purchase of shares on the next Purchase Date, and deliver all the Common Stock held for the deceased Participant to the beneficiary, together with any remaining Proceeds, subject to
the Agent’s receipt of Participant’s death certificate and satisfactory evidence of the beneficiary’s identity and acceptance of the Common Stock and Proceeds. The beneficiary shall have no rights under the Plan during the
Participant’s lifetime. 

	12.	SHARES AUTHORIZED; CHANGE IN CORPORATE STRUCTURE AND
CAPITALIZATION  

  

	 	A.	Subject to adjustment upon changes in the capitalization of the Company, the maximum number of shares of Common Stock which shall be made available for purchase under
this Plan is 492,952 shares (after taking into account the action taken by the Board of Directors in 2009 to reallocate a portion of the shares previously reserved for purchase under this Plan for future issuance under the Sun Hydraulics Limited
Share Incentive Plan). The shares of Common Stock purchased under the Plan may, at the election of the Company, be authorized but unissued shares of the Company’s Common Stock, authorized but unissued treasury shares held by the Company, or
shares of Common Stock purchased on the open market by the Agent. 

  

	 	B.	In the event of any change in the number of outstanding shares of Common Stock by reason of a recapitalization, merger, consolidation, reorganization, separation,
liquidation, stock split, stock dividend, combination of shares, or any other change in the corporate structure or shares of stock of the Company, the Board of Directors will make an appropriate adjustment, in accordance with applicable provisions
of the Code and law, in the number and kind of shares which may be offered under the Plan, both in the aggregate and as to each Participant, the number of shares then subject to offerings theretofore made, and the price of shares offered under the
Plan. 

  

	 	C.	If the Company shall not be the surviving corporation in any merger or consolidation, or survives only as a subsidiary of another entity, or if the Company is to be
dissolved or liquidated, and unless a surviving corporation assumes or substitutes new options within the meaning of Section 424(a) of the Code, for all Options then outstanding under the Plan, 

 

	 	i.	the Purchase Date for all Options then outstanding shall be accelerated to a date fixed by the Board of Directors prior to the effective date of such merger or
consolidation or such dissolution or liquidation and shall be deemed to be exercised, and 

  

	 	ii.	upon such effective date any unexercised Options shall expire. 

  

	13.	SECURITIES LAWS 

 The Plan is intended to comply with Rule 16b-3 of the Securities Act of 1934, and shall be interpreted therewith. The Company shall not be obligated to issue any Common Stock pursuant to the Plan at any
time when the shares have not been registered under the Securities Act of 1933, as amended, and such other state and federal laws, rules or regulations as the Company or the Board of Directors deems applicable and, in the opinion of legal counsel
for the Company, there is no exemption from the registration requirements of such laws, rules or regulations available for the issuance and sale of such shares. 

 
Further, all Common Stock acquired pursuant to the Plan shall be subject to, and may be sold only in a manner consistent with the Company’s Policy on Confidentiality-Insider Trading and
other policies concerning compliance with securities laws and insider trading, as the same may be amended from time to time. 
  

	14.	ADMINISTRATION 

  

	 	A.	The Plan shall be administered by the Board of Directors. Notwithstanding the preceding sentence, the Board of Directors may delegate its authority to a Compensation
Committee of at least two members of the Board of Directors. The members of the Compensation Committee shall serve at the pleasure of the Board of Directors. The interpretation and construction of any provision of the Plan, and the adoption of rules
for administering the Plan, shall be made by the Board of Directors (or, in its place, the Compensation Committee). Determinations made by the Board of Directors (or the Compensation Committee) with respect to any matter or provision contained in
the Plan shall be final, conclusive and binding upon the Company and all Participants, their beneficiaries and legal representatives. Any rule adopted by the Board of Directors (or the Compensation Committee) shall remain in full force and effect
unless and until amended or repealed by the Board of Directors (or the Compensation Committee). 

  

	 	B.	The Board of Directors (or the Compensation Committee) shall have the right to appoint the Agent and any other entity or person, including Company employees, and to
delegate to them certain functions or services to be performed in connection with Plan administration, and to name successors. 

  

	 	C.	The Participant or beneficiary, as the case may be, shall bear all costs and expenses associated with requests for the issuance of stock certificates, the sale of
Common Stock, and a Participant’s withdrawal from the Plan. 

  

	 	D.	The Agent will mail to each Participant’s home address a quarterly statement showing the number of shares of Common Stock held beneficially for the Participant,
the amount and derivation of cash in the Participant’s Proceeds account, and any purchases of shares in the Offering Period that closed during the calendar quarter reflected in the statement. 

 

	 	E.	If at any time the number of shares as to which Options have been granted shall exceed the number of shares authorized for purchase under the Plan on a certain Purchase
Date, the number of shares which may be purchased by each Participant shall be reduced proportionately. Payroll deductions not able to be used shall remain in the Participant’s Proceeds account. 

 

	15.	AMENDMENT AND TERMINATION 

 The Board of Directors may at any time terminate or amend the Plan, provided that no amendment may be made without approval of the shareholders of the Company if such

 
amendment would increase the number of shares which may be available under the Plan, except by operation of Section 12 of the Plan, or materially modify the requirements as to eligibility
for participation in the Plan. 
  

	16.	NONGUARANTEE OF EMPLOYMENT 

 Neither eligibility to participate in, actual participation in, nor any provision of the Plan shall be construed as giving any eligible employee or Participant any employment right with the Company or a
Subsidiary. 
  

	17.	AGENT FOR SERVICE OF PROCESS 

Legal process may be served upon the Secretary of the Company or the Chief Financial Officer, Sun Hydraulics Corporation, 1500 West
University Parkway, Sarasota, FL 34243. 
  

	18.	SHAREHOLDER APPROVAL 

 The effectiveness of this Plan is subject to its approval by the Company’s shareholders at the next Annual Meeting of Shareholders, or within a twelve month period after the date the Plan is adopted
by the Board of Directors. In the event shareholder approval of this Plan is not obtained within this period, the Plan shall terminate, all shares purchased under the Plan shall be returned to the Company, and the Agent shall refund to each
Participant any Proceeds accumulated for the Participant and the current value of any shares of Common Stock then held by the Agent on the Participant’s behalf. 
 Revised through June 9, 2010

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