Exhibit 10.18
FIRST AMENDMENT TO
SUN HYDRAULICS CORPORATION 401(K)
AND ESOP RETIREMENT PLAN
(Final Section 415 Limit
Regulations)
The Sun Hydraulics Corporation
401(k) and ESOP Retirement Plan (hereinafter referred to as the
“Plan”) provides in Section 8.1 for subsequent
plan amendments. Sun Hydraulics Corporation (“Company”)
now wishes to amend the Plan in the manner described below to make
the changes required by the 2007 final Treasury Regulations under
Code section 415. The Plan is therefore, amended as
follows:
1. Section 4.10 of the Plan,
entitled “ Maximum on Annual Additions,” is
revised effective as of January 1, 2008 by the addition of the
following paragraph at the end of such
Section 4.10:
“(i) For purposes of this
Section 4.10 of the Plan and Section 415(c) of the Code,
“415 Compensation” shall be the Participant’s
Compensation but shall not include any payments the Employer makes
to a retired or terminated Participant after the
Participant’s date of severance from employment (within the
meaning of Section 401(k)(2)(B)(i)(I) of the Code) with the
Employer, except that for Plan Years beginning on or after
January 1, 2008, post-severance payments shall be included in
415 Compensation for purposes of this Section to the extent that
such payments:
(i) are made to the
Participant within 2- 1 / 2 months after the date of
severance from employment with the
