FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
CARLSON ALLEN J
   2. Issuer Name and Ticker or Trading Symbol
SUN HYDRAULICS CORP [SNHY] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
President, CEO
(Last)
(First)
(Middle)
1500 WEST UNIVERSITY PARKWAY		 3. Date of Earliest Transaction (Month/Day/Year)
03/19/2008
(Street)

SARASOTA, FL 34243		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 03/19/2008   M   3,644 A $ 5.49 50,626 D  
Common Stock 03/19/2008   M   1,350 A $ 12.27 51,976 D  
Common Stock               5,198 I (1) BY ESOP TRUST

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (right to buy) $ 5.49 (2) 03/19/2008   M     3,644 (2)   (3) 10/15/2011 Common Stock 3,644 $ 0 0 D  
Employee Stock Option (right to buy) $ 12.27 (2) 03/19/2008   M     1,350 (2)   (4) 12/09/2012 Common Stock 1,350 $ 0 4,049 (5) D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
CARLSON ALLEN J
1500 WEST UNIVERSITY PARKWAY
SARASOTA, FL 34243		   X     President, CEO  

Signatures

 Gregory C. Yadley, as Attorney-in-Fact for ALLEN J. CARLSON   03/19/2008
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Reflects allocations of shares under the Sun Hydraulics Corporation Employee Stock Ownership Plan.
(2) Price and number of shares have been adjusted for 1 for 2 common stock dividend declared in June 2007, payable on July 15, 2007, to shareholders of record on June 30, 2007.
(3) Options exercisable as follows: 2,429 shares on 10/15/05; an additional 2,429 shares on 10/15/06; and an additional 2,429 (adjusted to 3,644) shares on 10/15/07.
(4) Options exercisable as follows: 899 shares on 12/09/06; an additional 899 (adjusted to 1,349) shares on 12/09/07; an additional 900 (adjusted to 1,349) shares on 12/09/08; an additional 900 (adjusted to 1,350) shares on 12/09/09; and an additional 900 (adjusted to 1,350) shares on 12/09/10.
(5) Includes options to purchase an additional 1,349 shares as a result of a 1 for 2 common stock dividend declared in June 2007, payable on July 15, 2007, to shareholders of record on June 30, 2007.

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