Document:

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                                                                    EXHIBIT 4.30

                   SECOND AMENDED AND RESTATED LOAN AGREEMENT
                           [Revolving Line of Credit]

         THIS SECOND AMENDED AND RESTATED LOAN AGREEMENT made on this
day of January, 2002, by and among NORTHERN TRUST BANK OF FLORIDA, N.A.
("Lender"), SUN HYDRAULICS CORPORATION, a Florida corporation ("Borrower"), and
SUN HYDRAULIK HOLDINGS LIMITED, a corporation organized and existing under the
laws of the United Kingdom, SUN HYDRAULICS LIMITED, a corporation organized and
existing under the laws of the United Kingdom, and SUN HYDRAULIK GMBH, a
corporation organized and existing under the laws of Germany (collectively
referred to herein as "Guarantors").

                                   WITNESSETH:

         WHEREAS, Lender has made a revolving line of credit loan to Borrower in
the maximum principal amount of $7,500,000.00 ("Loan"), which loan is evidenced
by a modification renewal master note of even date herewith in the principal
amount of $7,500,000.00 ("Note"), and

         WHEREAS, in connection with making the Loan, Borrower, Guarantors, and
Lender entered into a loan agreement dated July 23, 2000, which was amended by
an amended and restated loan agreement dated November 1, 2000 ( "Original Loan
Agreement"), and

         WHEREAS, Borrower has requested Lender to modify certain terms of the
Original Loan Agreement and other loan documents, and Lender has agreed to do so
provided that Borrower modify the terms of the Original Loan Agreement by
entering into this Second Amended and Restated Loan Agreement ("Loan
Agreement"),

         NOW, THEREFORE, in consideration of the premises and of the covenants
and agreements herein contained, the parties hereto agree that the Original Loan
Agreement is amended and restated in its entirety as follows:

         1.       LOAN TO BORROWER; EXECUTION OF LOAN DOCUMENTS. Lender agrees,
in accordance with the terms of this Agreement, to make the Loan to Borrower.
Concurrently herewith, Borrower has executed the Note, and other documents
related to the Loan. Guarantors have each executed separate guaranties of the
Loan ("Guaranties"). The Note, Guaranties, this Loan Agreement and other
documents executed in connection with the Loan are collectively referred to
herein as the "Loan Documents."

         2.       COSTS AND EXPENSES. Borrower shall pay all costs and expenses
incurred in connection with preparation for, closing, and servicing the Loan
including, without limitation, any legal fees, including the fees of Lender's
counsel, intangible taxes, documentary taxes, recording costs, and document
preparation fees.

         3.       REPRESENTATIONS AND WARRANTIES. To induce Lender to make the
Loan, Borrower makes the following representations and warranties:

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                  A.       The financial information for Borrower and each
Guarantor furnished to Lender in connection with Borrower's application for the
Loan is complete and accurate. There has been no material nor adverse change in
the financial condition of either Borrower or any guarantor or other obligor of
the Loan from that reflected on such financial information.

                  B.       Borrower is a duly organized corporation, existing
and in good standing under the laws of the State of Florida, has corporate power
to carry on the business in which it is engaged, and the obtaining and
performing of the Loan has been duly authorized by all necessary actions of the
board of directors and shareholders of the corporation under applicable law, and
do not and will not violate any provisions of applicable law or any of its
organizational documents.

                  C.       The obtaining and performing of the Loan does not and
will not result in a breach of, constitute a default under, require any consent
under, or result in the creation of any lien, charge, or encumbrance upon any
property of Borrower pursuant to any instrument, order, or other agreement to
which Borrower is a party or by which Borrower, any of its officers as such, or
any of its property is bound.

                  D.       There are no judgments, liens, encumbrances, or other
security interests outstanding against Borrower or any of its subsidiaries, or
any of their properties other than those disclosed to Lender in connection with
Borrower's request for the Loan, nor is there any pending or, to Borrower's
knowledge, threatened litigation that is reasonably likely to give rise to any
such judgment, lien or encumbrance.

                  E.       Neither Borrower nor any Guarantor, or any of their
respective subsidiaries have incurred any debts, liabilities, or obligations
(whether direct or contingent) nor committed themselves to incur any debts,
liabilities, or obligations other than those disclosed to Lender in connection
with Borrower's request for the Loan or shown on the financial statements
submitted to Lender.

                  F.       Neither Borrower nor any Guarantor, or any of their
respective subsidiaries have made any assignment for the benefit of their
creditors, admitted in writing their inability to pay their debts as they become
due, filed a petition of bankruptcy or been adjudicated bankrupt or insolvent,
or filed a petition seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution, receivership or similar relief under any
statute, law or regulation.

                  G.       There are no actions, suits or proceedings pending
or, to Borrower's knowledge, threatened against or affecting Borrower or any
Guarantor, or any of their respective subsidiaries, at law or in equity, or
before or by any governmental authorities, and neither Borrower nor any
Guarantor, or any of their respective subsidiaries is in default with respect to
any order, writ, injunction, decree or demand of any court or any governmental
authority.

                  H.       The obtaining of the Loan and the consummation of all
other transactions contemplated by the Loan Documents, and performance under the
Loan Documents, will not result in any breach of, or constitute a default under,
any mortgage, indenture, lease, loan, credit

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agreement or any other contract or instrument to which the Borrower or any of
its subsidiaries is a party or by which their properties may be bound or
affected.

         4.       GUARANTORS' REPRESENTATIONS AND WARRANTIES. To induce Lender
to make the Loan, each Guarantor makes the following representations and
warranties:

                  A.       The financial information for each Guarantor
furnished to Lender in connection with Borrower's application for the Loan is
complete and accurate. There has been no material nor adverse change in the
financial condition of any Guarantor from that reflected on such financial
information.

                  B.       The obtaining and performing of the Loan does not and
will not result in a breach of, constitute a default under, require any consent
under, or result in the creation of any lien, charge, or encumbrance upon any
property of any Guarantor pursuant to any instrument, order, or other agreement
to which a Guarantor is a party or by which a Guarantor or any of its property
is bound, other than those created by the Loan Documents.

                  C.       There are no judgments, liens, encumbrances, or other
security interests outstanding against a Guarantor or any of its property other
than those disclosed to Lender in connection with Borrower's request for the
Loan, nor is there any pending or, to Guarantor's knowledge, threatened
litigation that could or will give rise to any such judgment, lien or
encumbrance.

                  D.       No Guarantor has incurred any debts, liabilities, or
obligations (whether direct or contingent) and has not committed to incur any
debts, liabilities, or obligations other than those disclosed to Lender in
connection with Borrower's request for the Loan or shown on the financial
statements submitted to Lender.

                  E.       No Guarantor has made any assignment for the benefit
of his creditors, admitted in writing its inability to pay its debts as they
become due, filed a petition of bankruptcy or been adjudicated bankrupt or
insolvent, or filed a petition seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, receivership or similar
relief under any statute, law or regulation.

                  F.       There are no actions, suits or proceedings pending
or, to Guarantor's knowledge, threatened against or affecting any Guarantor, at
law or in equity, or before or by any governmental authorities, and Guarantor is
not in default with respect to any order, writ, injunction, decree or demand of
any court or any governmental authority.

                  G.       The obtaining of the Loan and the consummation of all
other transactions contemplated by the Loan Documents, and performance under the
Loan Documents, will not result in any breach of, or constitute a default under,
any mortgage, indenture, lease, loan, credit agreement or any other contract or
instrument to which any Guarantor is a party or by which its property may be
bound or affected.

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         5.       AFFIRMATIVE COVENANTS. Borrower will:

                  A.       Preserve and keep in force all licenses, permits, and
franchises necessary for the proper conduct of its business and duly pay and
discharge all taxes, assessments, and governmental charges upon Borrower or
against Borrower's property before the date on which penalties attach thereto,
unless and to the extent only that the same shall be contested in good faith and
by appropriate proceedings.

                  B.       Furnish to Lender (i) within 90 days after the close
of each fiscal year a consolidated annual profit and loss statement and balance
sheet on Borrower and its subsidiaries reviewed by an independent certified
public accountant who is satisfactory to Lender; (ii) within 30 days after
filing each year, an executed copy of Borrower's Federal income tax return, and
if any extensions have been filed, copies of each Extension Notice shall be
furnished to Lender within 30 days of filing; and (iii) such other information
reflecting the financial condition of Borrower and/or its subsidiaries as Lender
may request from time to time.

                  C.       Permit any representative or agent of Lender to
examine and audit any or all of Borrower's books and records when requested by
Lender.

                  D.       Inform Lender immediately of any material adverse
change in the financial condition of Borrower or any of its subsidiaries.
Borrower will also promptly inform Lender of any litigation or threatened
litigation which might substantially affect Borrower's financial condition.

                  E.       Maintain Borrower's property and equipment in a state
of good repair.

                  F.       Maintain Borrower's net working capital, on a
consolidated basis ("Net Working Capital") in an amount not less than
$2,000,000.00 and a current ratio ("Current Ratio") of not less than 1.2:1.0 at
all times during the term of this Agreement. For the purposes of this Agreement,
Net Working Capital shall mean the excess of Borrower's current assets over
current liabilities, on a consolidated basis with its subsidiaries, which shall
be determined in accordance with generally accepted accounting principles as
consistently applied in the preparation of Borrower's previous financial
statements, and Current Ratio shall mean the quotient of current assets divided
by current liabilities, on a consolidated basis with its subsidiaries.

                  G.       Maintain Borrower's Tangible Net Worth at a minimum
of $35,000,000.00 ("Minimum Tangible Net Worth") for the fiscal year 2001.
Borrower's Minimum Tangible Net Worth as of each fiscal year-end thereafter
shall increase by at least 50% of Borrower's reported net income for the
immediately preceding fiscal year. For the purposes of this Agreement, Tangible
Net Worth shall mean (i) the aggregate amount of assets shown on the balance
sheet of Borrower at any particular date (but excluding from such assets
capitalized organization and development costs, capitalized interest, debt
discount and expense, goodwill, patents, trademarks, copyrights, franchises,
licenses, amounts due from officers, directors, stockholders and affiliates, and
such other assets as are properly classified "intangible assets" under generally

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accepted accounting principles) less (ii) liabilities at such date, all computed
in accordance with generally accepted accounting principles applied on a
consistent basis.

                  H.       Maintain Borrower's Total Liabilities to Tangible Net
Worth ratio, on a consolidated basis with its subsidiaries throughout the term
of the Loan at a minimum of 1.5:1.0 at all times during the term of this
Agreement. For purposes of this Agreement, the term "Liabilities" shall mean
Borrower's liabilities as computed in accordance with generally accepted
accounting principles.

                  I.       Maintain Borrower's debt service coverage ratio, on a
consolidated basis with its subsidiaries ("Debt Service Coverage Ratio")
throughout the term of the Loan at a minimum of 1.25:1.0 on a calendar year
basis for all operations of the Borrower and its subsidiaries, computed as
follows: net profits plus interest, plus depreciation, all divided by interest
plus current maturities of long term debt and capitalized leases, plus unfunded
capital expenditures and advances/withdrawals made to shareholders of Borrower
and/or its subsidiaries.

         6.       GUARANTORS' AFFIRMATIVE COVENANTS. Each Guarantor will:

                  A.       Furnish to Lender (i) within 90 days after the close
of each calendar year, a financial statement, including income information and
contingent liabilities, certified to Lender; (ii) within 30 days after filing
each year, an executed copy of Guarantor's Federal income tax return; and (iii)
such other information reflecting the financial condition of Guarantor as Lender
may request from time to time. In the event such financial statements disclose a
material, adverse change in the financial condition of Guarantor from the
conditions set forth in any prior financial statement of Guarantor theretofore
furnished to Lender, same shall constitute a default which shall entitle Lender
to all of the rights and remedies provided for in the Note, or other Loan
Documents.

                  B.       Permit any representative or agent of Lender to
examine and audit any or all of Guarantor's books and records when requested by
Lender.

                  C.       Inform Lender immediately of any material adverse
change in the financial condition of Guarantor. Each Guarantor will also
promptly inform Lender of any litigation or threatened litigation which might
substantially affect such Guarantor's financial condition.

         7.       NEGATIVE COVENANTS. Neither Borrower nor any of its
subsidiaries will, without prior written consent of Lender:

                  A.       Collaterally assign, mortgage, pledge, encumber, or
grant any security interest in any of its assets, whether now owned or hereafter
acquired.

                  B.       Enter into any merger or consolidation, or sell,
lease, transfer, or otherwise dispose of all or any substantial part of its
assets, whether now owned or hereafter acquired.

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                  C.       Change the name in which it does business without
providing Lender prior written notice thereof.

                  D.       Move its principal place of business without giving
written notice thereof to Lender at least 30 days prior thereto.

                  E.       Incur any new debt whether secured or unsecured,
except trade debt for the purchase of equipment which does not exceed
$100,000.00 for any item of equipment, and trade debt for the purchase of
inventory.

                  F.       Execute any guarantees or assumptions of any debt, or
endorse any obligations, except that Borrower may guaranty any trade debt for
the purchase of equipment which does not exceed $100,000.00 for any item of
equipment, and trade debt for the purchase of inventory which is incurred by a
subsidiary of Borrower.

                  G.       Enter into any asset sale/leaseback arrangement.

         8.       EVENTS OF DEFAULT. The Lender shall have the option to declare
the entire unpaid balance due on the Loan without notice of any kind, if any of
the following events occur:

                  A.       Failure or omission to pay, within fifteen (15) days
after payment is due, the Note (or any installment of principal or interest
thereunder).

                  B.       Default in the payment (other than payment of
principal and interest) or performance of any obligation, covenant, agreement or
liability contained or referred to in the Loan Agreement, Note, Guaranties, or
any other Loan Document, or upon the existence or occurrence of any circumstance
or event deemed a default under the Note or any other Loan Document, where such
default is not cured within 30 days.

                  C.       Any warranty, representation or statement made or
furnished by Borrower or Guarantors for the purpose of inducing Lender to make
the Loan proves to have been false in any material respect when made or
furnished.

                  D.       The default by Borrower or any party obligated under
the Note or any guaranty thereof in the payment or performance of any
obligation, covenant, agreement, or liability contained in any other mortgage,
note, obligation or agreement held by Lender, including but not limited to that
certain loan in the amount of $3,871,754.35 made by Lender to Borrower,
evidenced by a modification note of even date hereof, and that certain mortgage
loan in the current principal amount of $4,425,219.37, evidenced by a
modification note of even date herewith.

                  E.       The death, dissolution, termination of existence,
insolvency, or business failure of Borrower, or any party obligated under the
Note or Guaranties.

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                  F.       The assignment for the benefit of creditors or the
commencement of any proceedings in bankruptcy or insolvency by or against
Borrower or by or against any person obligated under the Note or Guaranties.

                  G.       The determination by Lender that a material adverse
change has occurred in the financial condition of Borrower or any person
obligated under the Note or any guaranty thereof, from the conditions set forth
in the most recent financial statement of such person heretofore furnished to
Lender or from the condition of such person as heretofore most recently
disclosed to Lender in any manner.

                  H.       The failure by Borrower or any party obligated under
the Note or Guaranties thereof to make any payment of principal or interest when
due under any obligation to any other creditor, if such failure continues beyond
any applicable grace period; provided, however, that the aggregate outstanding
obligation is in excess of $100,000.00, and is not being contested in good
faith.

                  I.       Any substantial part of the inventory, equipment, or
other property of Borrower, real or personal, is damaged or destroyed and the
damage or destruction is not covered by collectible insurance.

                  J.       Borrower suffers or permits any lien, encumbrance, or
security interest to arise or attach to any of Borrower's property, which is not
satisfied within 30 days.

                  K.       Any judgment is entered against Borrower that is not
satisfied or appealed within 30 days.

                  L.       Falsity in any material respect of, or any material
omission in, any representation or statement made to Lender by or on behalf of
Borrower or any person obligated under the Note or any guaranty thereof, in
connection with the Loan.

         9.       REMEDIES UPON DEFAULT. Upon the occurrence, or the discovery
by Lender of the occurrence, of any of the foregoing events, circumstances, or
conditions of default, Lender shall have, in addition to its option to
accelerate to maturity the full unpaid balance of the Loan, all of the rights
and remedies under applicable law, and in addition shall have the following
specific rights and remedies:

                  A.       To exercise Lender's right of set-off against any
account, fund, or property of any kind, tangible or intangible, belonging to
Borrower which shall be in Lender's possession or under its control.

                  B.       To cure such defaults, with the result that all costs
and expenses incurred or paid by Lender in effecting such cure shall be
additional charges on the Loan, shall bear interest at the highest rate
permitted by law, and shall be payable upon demand.

         10.      ATTORNEYS' FEES AND COSTS. Borrower promises and agrees to pay
all costs of collection and attorneys' fees, including fees for appellate
proceedings, bankruptcy proceedings

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or otherwise, incurred or paid by Lender in enforcing this Agreement or
preserving any right or interest of Lender hereunder.

         11.      WAIVER. No failure or delay on the part of Lender in
exercising any power or right hereunder, and no failure of Lender to give
Borrower notice of a default hereunder, shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power preclude any
other or further exercise thereof or the exercise of any other right or power
hereunder. No modification or waiver of any provision of this Agreement or any
instrument executed pursuant hereto or consent to any departure by Borrower from
this Agreement or such instrument shall in any event be effective unless the
same shall be in writing, and such waiver or consent shall be effective only in
the specific instance and for the particular purpose for which given.

         12.      BENEFIT. This Agreement shall be binding upon and inure to the
benefit of Borrower and Lender and their respective successors and assigns.
Lender may assign this Agreement in whole or in part. Borrower may not assign
this Agreement or its obligations hereunder without Lender's written consent.

         13.      GOVERNING LAW. This Agreement shall be governed and construed
in accordance with the laws of the State of Florida, and any litigation arising
out of or relating to this Agreement or the Loan shall be commenced and
conducted in the courts of the State of Florida or in the federal courts of the
State of Florida.

         IN WITNESS WHEREOF, the parties hereto have executed this Loan
Agreement on the day and year first above written.

                                       SUN HYDRAULICS CORPORATION,
                                       a Florida corporation

                                       By:      /s/ Allen Carlson
                                          --------------------------------------
                                          Allen Carlson
                                          As its President

                                                      BORROWER

                                       NORTHERN TRUST BANK OF FLORIDA, N.A.

                                       By:      /s/ Terence E. McGannon
                                          --------------------------------------
                                          Terence E. McGannon
                                          As its Vice President

                                                      LENDER

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                                       SUN HYDRAULIK HOLDINGS LIMITED,
                                       a corporation organized under the laws
                                       of the United Kingdom

                                       By:      /s/ Clyde G. Nixon
                                          --------------------------------------
                                          Clyde G. Nixon
                                          As its Deputy Chairman

                                       SUN HYDRAULIKS LIMITED,
                                       a corporation organized under the laws
                                       of the United Kingdom

                                       By:      /s/ Clyde G. Nixon
                                          --------------------------------------
                                          Clyde G. Nixon
                                          As its Director

                                       SUN HYDRAULIK GmbH,
                                       a corporation organized under the laws
                                       of Germany

                                       By:      /s/ Wulf Stegelmann
                                          --------------------------------------
                                          Wulf Stegelmann
                                          As its Geschaftsfuhrer

                                                   GUARANTORS

                                       9<PAGE>

                                                                    EXHIBIT 4.31

                                MODIFICATION NOTE
                           [Revolving Line of Credit]

$7,500,000.00                                  Effective Date: December 1, 2001
                                               Execution Date: January 18, 2002

         FOR VALUE RECEIVED, SUN HYDRAULICS CORPORATION ("Maker"), hereby
promises, jointly and severally, to pay to the order of NORTHERN TRUST BANK OF
FLORIDA, N.A. ("Lender") at 1515 Ringling Blvd., Sarasota, FL 34236 or at such
other place as the holder hereof may from time to time designate in writing, the
principal sum of Seven Million Five Hundred Thousand Dollars ($7,500,000.00), or
so much thereof as may be disbursed by Lender to Maker or for Maker's account
from time to time, together with interest at the rate hereinafter specified on
such indebtedness as shall from time to time remain unpaid, until paid in full,
such principal and interest being payable in lawful money of the United States
which shall be legal tender in payment of all debts at the time of payment.
Interest will be calculated on the basis of a 365/360 method, which computes a
daily amount of interest for a hypothetical year of 360 days, then multiplies
such amount by the actual number of days elapsed in an interest calculating
period.

         Interest on the unpaid principal sum outstanding from time to time
shall accrue at one of the following rates, as selected from time to time by
Maker in accordance with this Note:

                  A.       A variable rate of one percent (1.00%) per annum
below the prime rate announced by Lender from time to time ("Prime Rate"). The
interest rate will be adjusted accordingly on each date of change in the Prime
Rate. The Prime Rate is not necessarily the lowest interest rate charged by
Lender for monies loaned, and is intended solely as an index reference. If Maker
does not affirmatively select an interest rate pursuant to subparagraph B below,
the interest under this Note shall accrue pursuant to this subparagraph A.

                  B.       A variable rate of two percent (2.00%) per annum
above the Adjusted LIBOR Rate for either one month, two months, or three months
(each an "Interest Period), as selected by Maker, from time to time. The
Adjusted LIBOR Rate means, with respect to any Interest Period, (i) the rate of
interest per annum (rounded upward, if necessary, to the next higher 1/16th of
one percent) determined by the Lender, in accordance with its customary general
practice from time to time, to be the rate equal to the London InterBank Offered
Rate (expressed as a percentage) for dollar deposits as would be quoted by the
Lender for 11:00 a.m. London time, or as soon thereafter as practicable, on the
second business day immediately preceding the first day of such Interest Period,
for a term comparable to such Interest Period and (ii) as adjusted from time to
time in the Lender's sole discretion for then applicable reserve requirements,
deposit insurance assessment rates and other regulatory costs. In the event the
London InterBank Offered Rate ceases to be available, Lender shall have the
right to substitute another comparable index selected in Lender's discretion.
Maker shall give to Lender five business days notice, in writing, if Maker
desires to select the interest rate option based on the Adjusted LIBOR Rate
pursuant to this subparagraph B, and such notice shall specify the Interest
Period selected by Maker. The interest rate shall adjust five business days
after Lender's receipt of such notice (which date shall be deemed the first day
of the Interest Period) to equal a fixed rate computed in accordance with this
subparagraph B, which fixed interest rate shall remain in effect for the
Interest Period. At the end of

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the Interest Period, and at the end of each successive Interest Period
thereafter, the interest rate shall be adjusted and computed in accordance with
this subparagraph B for the same Interest Period unless, at least five business
days prior to the end of any Interest Period, Maker gives Lender written notice
that Maker has selected a different interest rate in accordance with the terms
of either subparagraph A above or this subparagraph B.

         Interest shall be due and payable in arrears on the first day of each
calendar month. The entire unpaid principal balance, together with accrued
interest shall be due and payable August 15, 2004.

         All payments made hereunder shall be applied first to accrued interest
then due and owing; next to amounts expended by Lender to cure any default under
this Note, (as hereinafter defined), or any other loan documents executed in
connection herewith; next to charges, costs, expenses, or attorneys' fees then
due and payable to Lender under this Note, or any other loan documents; and the
balance, if any, to principal.

         This Note may be prepaid, in whole or in part, at any time without
penalty. All prepayments made hereunder shall be applied in the same manner as
other payments made hereunder, as set forth above. The making of any prepayment
shall not relieve Maker from the obligation to make the payments next due
hereunder on a timely basis.

         If any payment is more than fifteen (15) days late, Maker agrees to pay
to Lender a late charge equal to five percent (5%) of the payment.
Notwithstanding the foregoing, however, all payments shall be due and payable as
of the dates set forth above, and the failure to make all payments when due
shall constitute a default under this Note. The terms of this paragraph are not
intended and shall not be deemed to create a grace period for payment.

         This Note evidences a loan in the original principal amount of
$7,500,000.00; however, the actual indebtedness from time to time evidenced
hereby shall be the sum of all advances made by Lender to Maker, less the
aggregate amount of all principal repayments made under this Note by Maker to
Lender. It is the intention hereof and the purpose of this Note to evidence a
revolving line of credit against which Maker may draw and from which Lender will
advance from time to time. Maker may repay the principal amount outstanding, in
whole or in part, from time to time, and again draw against the line of credit,
so that the principal amount outstanding hereunder may fluctuate in accordance
with such advances and repayments, but the aggregate principal amount
outstanding under this Note shall not at any time exceed the principal sum of
$7,500,000.00. Maker's right to draw principal amounts under this Note is
conditioned upon Maker not being in default under this Note, or any other loan
document executed in connection herewith.

         Each and every party to this Note, whether as Maker, endorser, surety,
guarantor, or otherwise ("Obligor"), hereby waives all rights of homestead and
other exemptions granted by the constitution or laws of Florida, and further
waives presentment, demand, protest, notice of dishonor, notice of nonpayment,
notice of protest, and diligence in collection, and assents to the terms hereof
and to any extension or postponement of the time for payment or any other
indulgence. It is further specifically agreed that this Note or any part of the
principal or interest due hereon may be renewed, modified or extended, in whole
or in part, such modification to include but not be limited to changes

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in payment schedules and interest rates, from time to time by the holder of this
Note, at the request of the then owners of all or part of any collateral for
this Note, or at the request of any party bound hereon or who has assumed or may
hereafter assume payment hereof, without the consent of or notice to other
parties bound hereon and without releasing them from any liabilities then
existing.

         Each and every Obligor hereby consents that any real or personal
property now or hereafter securing this Note, or any part of such security, may
be released, exchanged, added to or substituted for by Lender, without in any
way modifying, altering, releasing, affecting or limiting their respective
liabilities or the lien of any mortgage or security agreement, and further
agrees that Lender shall not be required first to institute any suit, or to
exhaust any of its remedies against Maker or any other person or party liable or
to become liable hereunder, in order to enforce payment of this Note, and
further agrees that Maker or any other party liable hereunder may be released by
Lender from any or all liability under this Note and such release shall in no
way affect or modify the liability of the remaining parties hereto.

         Each and every Obligor hereby consents and agrees that he is bound,
jointly and severally, under the terms hereof and is subject to all of the
provisions set forth herein as fully as though each was an undersigned hereof,
and further consents and agrees that any Obligor may be sued by Lender without
joining any other Obligor, whether primarily or secondarily liable.

         Notwithstanding anything contained herein to the contrary or in other
loan documents executed in connection herewith, no payee or holder of this Note
shall ever be entitled to receive, collect or apply as interest on the
obligation evidenced hereby any amount in excess of the maximum rate of interest
permitted to be charged by applicable law and, in the event Lender or any holder
hereof ever receives, collects or applies as interest any such excess, such
amount which would be excessive interest shall be applied to the reduction of
the principal sum; and, if the principal sum is paid in full, any remaining
excess shall forthwith be paid to Maker. In determining whether or not the
interest paid or payable under any specific contingency exceeds the highest
lawful rate, Maker and Lender shall, to the maximum extent permitted under
applicable law: (a) characterize any non-principal payment as an expense, fee or
premium rather than as interest; (b) exclude voluntary prepayments and the
effects thereof; and (c) spread the total amount of interest, or charges in the
nature of interest, pursuant to applicable law.

         As used herein, "Event of Default" shall mean the occurrence of any of
the following events or conditions: (a) failure or omission to pay when due this
Note (or any installment of principal or interest hereunder); (b) default in the
payment (other than payment of principal and interest) or performance of any
obligation, covenant, agreement or liability contained or referred to in this
Note, or any other loan document executed in connection herewith, or upon the
existence or occurrence of any circumstance or event deemed a default under this
Note or any other loan document executed in connection herewith; (c) any
warranty, representation or statement made or furnished by any Obligor to Lender
for the purpose of inducing Lender to make the loan evidenced by this Note,
proves to have been false in any material respect when made or furnished;
(d) the default by Maker or any party obligated under this Note or any guaranty
hereof or any affiliate of any of the foregoing ("Affiliated Companies") in the
payment or performance of any obligation, covenant, agreement, or liability
contained in any other mortgage, note, obligation or agreement held by Lender
including but not limited to those certain loans in the current principal
amounts of

                                       3

<PAGE>

$3,871,754.35 and $4,425,219.37 evidenced by notes executed by Maker on even
date herewith; (e) the death, dissolution, termination of existence, insolvency,
or business failure of any Obligor; (f) the appointment of a receiver of any
property of an obligor; (g) the assignment for the benefit of creditors or the
commencement of any proceedings in bankruptcy or insolvency by or against any
Obligor; (h) the determination by Lender that a material adverse change has
occurred in the financial condition of any Obligor from the conditions set forth
in the most recent financial statement of such Obligor heretofore furnished to
Lender or from the condition of such Obligor as heretofore most recently
disclosed to Lender in any manner; (i) the failure by Maker or any party
obligated under this Note or any guaranty hereof to make any payment of
principal or interest when due under any obligation to any other creditor;
(j) any substantial part of the inventory, equipment, or other property of
Maker, real or personal, is damaged or destroyed and the damage or destruction
is not covered by collectible insurance; (k) Maker suffers or permits any lien,
encumbrance, or security interest to arise or attach to any of Maker's property,
which is not satisfied within 30 days; (l) any judgment is entered against Maker
that is not satisfied or appealed within 30 days; or (m) falsity in any material
respect of, or any material omission in, any representation or statement made to
Lender by or on behalf of any Obligor in connection with the loan evidenced by
this Note. Upon the occurrence of any such default or at any time thereafter,
subject to the grace period, if any, provided in this Note, Lender may, at its
option, declare the whole amount of principal and interest provided for in and
by this Note, and any and all other secured indebtedness, immediately due and
payable without demand or notice of any kind to any person, and the same
thereupon shall become immediately due, payable and collectible (by foreclosure
or otherwise) at once and without notice to Maker. Any default hereunder shall
constitute a default under any other mortgage, note, obligation or agreement of
Maker or any Affiliated Company held by Lender. The agreements contained in this
paragraph to create cross-defaults under all mortgages, notes, obligations and
agreements between Maker, and any Affiliated Company, and Lender, whether
currently existing or hereafter created, in the event of default under one or
more of such mortgages, notes, obligations or agreements are a material and
specific inducement and consideration for the making by Lender of the loan
evidenced by this Note.

         Notwithstanding the provisions of the foregoing paragraph to the
contrary, in the event of a non-monetary default of the type set forth in
subsections (b), (d), (h) or (j) of the foregoing paragraph, then prior to
Lender precipitating to maturity the full unpaid balance of this Note or
otherwise exercising any rights available to Lender under the terms of this Note
or any other loan document executed in connection herewith, Lender shall give
written notice to Maker and Maker shall have a period of thirty (30) days from
the date such notice is given in which to cure such default; provided, however,
if such default cannot, with due diligence, be cured within said 30 day period,
and such default does not threaten to impair Lender's security for this Note,
then the 30 day period shall be extended for such period as may be reasonably
necessary to complete the curing of same, provided that Maker proceeds with all
due diligence and continuity to cure the default. Notice required hereunder may,
at the option of Lender, be given by either certified mail, registered mail,
regular mail, facsimile transmission, Federal Express or other express courier,
or by personal delivery, and shall be deemed given when mailed, transmitted,
placed with the courier or delivered to Maker, whichever is first. In the event
the default is not cured within the time provided, then Lender shall have the
right to accelerate this Note and proceed to enforce this Note and the loan
documents, without further notice to Maker.

                                       4

<PAGE>

         It is expressly agreed that upon the occurrence of an Event of Default,
or if Lender shall deem itself insecure (because the prospect of timely payments
is impaired, because the value of Lender's security is impaired, because the
prospect of performance of any covenant or agreement under this Note, or any
other loan document is impaired, because of any change of circumstance which
adversely affects any matters originally considered by Lender in making the
loan, or otherwise), then or at any time thereafter at the option of Lender, the
whole of the principal sum remaining unpaid hereunder, together with all accrued
and unpaid interest thereon, shall become due and payable immediately without
notice, anything contained herein to the contrary in any way notwithstanding,
and in any such event Lender shall have the right to set-off against this Note
all money owed by Lender in any capacity to any Obligor, whether or not due, and
Lender shall be deemed to have exercised such right of set-off and to have made
a charge against any such money immediately upon the occurrence of an Event of
Default although made or entered on the books subsequent thereto. From and after
an Event of Default, the interest rate on the entire outstanding principal
balance hereunder shall accrue at the highest rate permitted to be charged by
applicable law ("Default Rate"). In the event the Default Rate shall be
applicable and Lender has not accelerated this Note, the amount of each payment
otherwise due hereunder shall be increased to an amount equal to the regular
amount of the principal installment due hereunder, plus accrued interest at the
Default Rate. Any judgment rendered on this Note shall bear interest at the
Default Rate.

         Each Obligor shall be obligated to pay as part of the indebtedness
evidenced by this Note all costs of collection, whether or not a suit is
brought, including any reasonable attorneys' fees that may be incurred in the
collection or enforcement hereof. The term "attorneys' fees" shall include but
not be limited to any such fees incurred in any appellate or related ancillary
or supplementary proceedings, whether before or after final judgment related to
the enforcement or defense of this Note.

         If at any time any federal, state, county or municipal government or
agency thereof shall impose any documentary stamp tax, intangible tax, or any
other type of tax upon this Note, or upon the indebtedness evidenced hereby
(other than any federal, state or local income tax imposed upon Lender), then
Maker shall pay same within fifteen (15) days after demand by Lender, together
with any interest and penalties thereon.

         Time is of the essence of this Note. The remedies of Lender as provided
herein, or any other loan document executed in connection herewith, shall be
cumulative and concurrent, and may be pursued singularly, successively or
together, at the sole discretion of Lender, and may be exercised as often as
occasion therefor shall arise. No act or omission of Lender, including
specifically any failure to exercise any right, remedy or recourse, shall be
deemed to be a waiver or release of such right, remedy or recourse, and any
waiver or release may be effected only through a written document executed by
Lender and then only to the extent specifically recited therein. A waiver or
release with respect to any one event shall not be construed as continuing as a
bar to, or as a waiver or release of, any subsequent right, remedy or recourse
as to any subsequent event.

         The term "Lender" where used herein shall include Lender's successors
and assigns. The term "Maker" shall include each person signing this Note,
jointly and severally, and their respective heirs, successors and assigns. The
term "Obligor" shall include Maker and every person who is an endorser,
guarantor, or surety of this Note, or who is otherwise a party hereto, and their
respective

                                       5

<PAGE>

heirs, successors and assigns. The terms "person" and "party" shall include
individuals, firms, associations, joint ventures, partnerships, estates, trusts,
business trusts, syndicates, fiduciaries, corporations, and all other groups or
combinations. Whenever used herein, the singular number shall include the
plural, the plural the singular, and the use of any gender shall include all
genders. This Note shall be construed under Florida law.

         This note amends and replaces that certain promissory note dated July
23, 2000 ("Original Note").

         IN WITNESS WHEREOF, Maker has caused this Note to be duly executed and
delivered as of the date first above written.

Maker's Address:

1500 University Parkway                SUN HYDRAULICS CORPORATION
Sarasota, FL  34243                    a Florida Corporation

                                       By:      /s/ Tricia Fulton
                                          -------------------------------------
                                               Tricia Fulton
                                               As its Corporate Controller

                                       6

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