Document:

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                                                                   EXHIBIT 4.32

                       AMENDED AND RESTATED LOAN AGREEMENT
                                 [Mortgage Loan]

         THIS AMENDED AND RESTATED LOAN AGREEMENT executed on this ____ day of
January, 2002, and effective December 1, 2001, by and among NORTHERN TRUST BANK
OF FLORIDA, N.A. ("Lender"), SUN HYDRAULICS CORPORATION, a Florida corporation
("Borrower").

                                  WITNESSETH:

         WHEREAS, Lender has made a loan to Borrower ("Loan"), which loan is
evidenced by a modification note of even date herewith in the principal amount
of $4,425,219.37 ("Note"), and

         WHEREAS, the Loan is secured by a certain real estate mortgage recorded
in Official Records Book 1494, page 6860, Public Records of Manatee County,
Florida, as modified ("Mortgage"), and

         WHEREAS, in connection with making the Loan, Borrower and Lender
entered into a loan agreement dated June 14, 1996 ( "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 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 a Modification
Agreement ("Modification Agreement"), and other documents related to the Loan.
The Note, The Mortgage (as amended), 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:

                  A.       The financial information for Borrower and each
guarantor or other obligor furnished to Lender in connection with Borrower's
application for the Loan is complete

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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 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 threatened
litigation that could or will give rise to any such judgment, lien or
encumbrance.

                  E.       Neither Borrower nor any of its 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 of its 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, threatened against or affecting Borrower or any of its subsidiaries, the
Collateral or any guarantor or obligor on the Loan, or involving the validity or
enforceability of the Mortgage or the priority of the lien thereof, at law or in
equity, or before or by any governmental authorities, and neither Borrower nor
any of its 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, security agreement, lease, loan, credit 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.

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         4.       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.

         5.       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.

                  C.       Change the name in which it does business.

                  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.

         6.       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:

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                  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 Mortgage, Note, this Loan Agreement,
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.

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

                  D.       A default under any other mortgage on the Collateral
(whether such other mortgage be held by Lender or by a third party).

                  E.       The institution of foreclosure proceedings of another
mortgage or lien of any kind on the Collateral (whether such other mortgage or
lien be held by Lender or by a third party).

                  F.       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 revolving line of credit loan in the amount of $7,500,000.00 made by
Lender to Borrower, evidenced by a modification note of even date hereof, and
that certain loan in the current principal amount of $3,871,754.35, evidenced by
a modification note of even date herewith.

                  G.       The death, dissolution, termination of existence,
insolvency, or business failure of Borrower or any party obligated under the
Note or any guaranty thereof.

                  H.       The appointment of a receiver of any part of the
Collateral.

                  I.       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 any guaranty
thereof.

                  J.       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.

                  K.       The failure by Borrower or any party obligated under
the Note or any guaranty 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.

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                  L.       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.

                  M.       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.

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

                  O.       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.

         7.       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, and shall be secured by the
Mortgage and other Loan Documents.

         8.       ATTORNEYS' FEES AND COSTS. Borrower promises and agrees to pay
all costs of collection and attorneys' fees, including fees for appellate
proceedings, bankruptcy proceedings or otherwise, incurred or paid by Lender in
enforcing this Agreement or preserving any right or interest of Lender
hereunder.

         9.       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.

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         10.      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.

         11.      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

                                       7<PAGE>
                                                                    EXHIBIT 4.33

                                MODIFICATION NOTE
                                 [Mortgage Loan)

$4,425,219.37                                   Effective Date: December 1, 2001
                                                Execution Date: January __, 2002

         FOR VALUE RECEIVED, SUN HYDRAULICS CORPORATION, a Florida corporation
("Maker"), hereby promises, jointly and severally, to pay to the order of
NORTHERN TRUST BANK OF FLORIDA, N.A. ("Lender") at 1515 Ringling Boulevard,
Sarasota, FL 34236, or at such other place as the holder hereof may from time to
time designate in writing, the principal sum of Four Million Four Hundred Twenty
Five Thousand Two Hundred Nineteen and 37/100 Dollars ($4,425,219.37), 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 from the Effective Date through November 30, 2006, at six and
one-half percent (6.50%) per annum. The interest rate shall be adjusted on
December 1, 2006, (being an "Interest Adjustment Date"), to equal the weekly
average yield on United States Treasury securities, adjusted to a constant
maturity of five years, as made available by the Federal Reserve Board, plus two
percent (2.0%). The figures so used to compute the change in interest rate shall
be those figures made most recently available prior to the Interest Adjustment
Date. In the event said index ceases to be available, Lender shall have the
right to substitute another comparable index selected in Lender's discretion.

         Beginning January 1, 2002, principal and interest on the loan shall be
due and payable in consecutive monthly installments. Until the Interest
Adjustment Date, the monthly installments hereunder shall equal $33,239.02. On
the Interest Adjustment Date, the amount of the monthly installments shall be
increased or decreased so as to maintain an amortization of the loan evidenced
by this Note over a twenty year period, which period shall be deemed to have
commenced on December 1, 2001. The entire unpaid principal balance, together
with accrued interest, shall be due and payable December 1, 2011.

         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, the Mortgage (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, the Mortgage, 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.

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         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.

         This Note is secured by a mortgage and security agreement (the
"Mortgage") dated June 14, 1996, as amended, made by Maker in favor of Lender
encumbering real property and personal property described therein (the
"Mortgaged Property") located in Manatee County, Florida.

         The entire unpaid principal balance hereof together with all accrued
interest due shall, at Lender's sole option, become immediately due and payable
in the event of the sale or transfer of all or any part of the Mortgaged
Property, or any interest therein.

         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 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 the Mortgaged
Property, 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 the real or personal
property 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 the Mortgage, 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 the
Mortgage, or 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)

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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) within fifteen (15)
days after payment is due; (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 Mortgage, 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) a default under any other mortgage
on the Mortgaged Property (whether such other mortgage be held by Lender or by a
third party); (e) the institution of the foreclosure proceedings of another
mortgage or lien of any kind on the Mortgaged Property (whether such other
mortgage or lien be held by lender or by a third party); (f) 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
$4,094,669.00 and $7,500,000.00 evidenced by notes executed by Maker on even
date herewith; (g) the death, dissolution, termination of existence, insolvency,
or business failure of any Obligor; (h) the appointment of a receiver of any
property of an obligor; (i) the assignment for the benefit of creditors or the
commencement of any proceedings in bankruptcy or insolvency by or against any
Obligor; (j) 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; (k) 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; (l)
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; (m) 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; (n) any judgment is entered against Maker
that is not satisfied or appealed within 30 days; or (o) 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.

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<PAGE>

         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), (f), (j) or (l) 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.

         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, the
Mortgage, 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.

         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 the Mortgage, or upon the indebtedness
evidenced hereby (other than any federal, state or local income

                                       4
<PAGE>

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 in the Mortgage, 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 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 is a modification of that certain note dated March 1, 1999 in the
principal amount of $4,840,738.63. State of Florida documentary stamps in the
amount required by law were paid on the mortgage securing the note which this
Note modifies. No further State documentary stamps are required.

         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/ Allen Carlson
                                       -----------------------------------------
                                       Allen Carlson
                                       As its President

                                       5

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