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<B><FONT SIZE=5>


<P ALIGN="CENTER">UNITED STATES</P>


<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION </P>


</FONT><P ALIGN="CENTER">WASHINGTON, D.C. 20549 </P>


</B><FONT FACE="Arial" SIZE=2>


<P>&nbsp;</P>


<P>&nbsp;</P>


</FONT><B><FONT SIZE=5><P ALIGN="CENTER">FORM 8-K </P>


</B></FONT><FONT FACE="Arial" SIZE=2><P>&nbsp;</P>


</FONT><B><P ALIGN="CENTER">CURRENT REPORT </P>


<P ALIGN="CENTER">PURSUANT TO SECTION 13 OR 15(d) OF THE </P>


<P ALIGN="CENTER">SECURITIES EXCHANGE ACT OF 1934 </P>


</B><FONT FACE="Arial" SIZE=2><P>&nbsp;</P>


</FONT><B><FONT SIZE=2><P ALIGN="CENTER">Date of Report (Date of earliest event reported): May 2, 2006</P>


</B></FONT><FONT FACE="Arial" SIZE=2><P>&nbsp;</P>





<P>&nbsp;</P>


</FONT><B><FONT SIZE=6><P ALIGN="CENTER">Sunrise Telecom Incorporated </P>


</FONT><FONT SIZE=1><P ALIGN="CENTER">(Exact name of registrant as specified in its charter) </P>


</B></FONT><FONT FACE="Arial" SIZE=2><P>&nbsp;</P>


<P>&nbsp;</P></FONT>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=578>


<TR><TD WIDTH="31%" VALIGN="TOP">


<B><FONT SIZE=2><P ALIGN="CENTER">Delaware</B></FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="31%" VALIGN="TOP">


<B><FONT SIZE=2><P ALIGN="CENTER">000-17781</B></FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="31%" VALIGN="TOP">


<B><FONT SIZE=2><P ALIGN="CENTER">77-0181864</B></FONT></TD>


</TR>


<TR><TD WIDTH="31%" VALIGN="TOP">


<B><FONT SIZE=1><P ALIGN="CENTER">(State or other jurisdiction</P>


<P ALIGN="CENTER">of incorporation)</B></FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="31%" VALIGN="TOP">


<B><FONT SIZE=1><P ALIGN="CENTER">(Commission File</P>


<P ALIGN="CENTER">Number)</B></FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="31%" VALIGN="TOP">


<B><FONT SIZE=1><P ALIGN="CENTER">(IRS Employer</P>


<P ALIGN="CENTER">Identification No.)</B></FONT></TD>


</TR>


</TABLE>


</CENTER></P>





<FONT FACE="Arial" SIZE=2><P>&nbsp;</P></FONT>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=578>


<TR><TD WIDTH="48%" VALIGN="TOP">


<B><FONT SIZE=2><P ALIGN="CENTER">302 Enzo Drive, San Jose, California</B></FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="48%" VALIGN="TOP">


<B><FONT SIZE=2><P ALIGN="CENTER">95138</B></FONT></TD>


</TR>


<TR><TD WIDTH="48%" VALIGN="TOP">


<B><FONT SIZE=1><P ALIGN="CENTER">(Address of principal executive offices)</B></FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="48%" VALIGN="TOP">


<B><FONT SIZE=1><P ALIGN="CENTER">(Zip Code)</B></FONT></TD>


</TR>


</TABLE>


</CENTER></P>





<FONT FACE="Arial" SIZE=2><P>&nbsp;</P>


</FONT><B><FONT SIZE=2><P ALIGN="CENTER">Registrant's telephone number, including area code&nbsp;&nbsp;(408) 363-8000 </P>


</B></FONT><FONT FACE="Arial" SIZE=2><P>&nbsp;</P>


</FONT><B><FONT SIZE=2><P ALIGN="CENTER">Not Applicable </P>


</FONT><FONT SIZE=1><P ALIGN="CENTER">(Former name or former address if changed since last report) </P>


<P ALIGN="CENTER">&nbsp;</P>


</B></FONT><FONT SIZE=2><P>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:</P>


</FONT><FONT SIZE=1><P>&nbsp;&nbsp;&nbsp; ___&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>





<P>&nbsp;&nbsp;&nbsp; ___&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>





<P>&nbsp;&nbsp;&nbsp; ___&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>





<P>&nbsp;&nbsp;&nbsp; ___&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>


</FONT><FONT FACE="Arial" SIZE=2>


</FONT><B><FONT SIZE=2><P ALIGN="JUSTIFY">Item 1.01  Entry into a Material Definitive Agreement.</P>


</B>


</FONT><FONT SIZE=1><P>On May 2, 2006, Sunrise Telecom Incorporated ("Company") entered into a Termination Agreement  (the "Termination Agreement") with Daniel Babeux, the Company's Vice President and General Manager of Cable Broadband Group.  Pursuant to the Termination Agreement, (i) the termination of Mr. Babeux's employment with the Company was effective on April 24, 2006 and (ii) the Company agreed to pay Mr. Babeux the equivalent of his base salary for a period of six months, and accrued vacation pay due and owing as of April 24, 2006, to continue to provide the Company's group insurance benefits to Mr. Babeux for a period of six months.  </P>





<P>A copy of the Termination Agreement dated April 24, 2006 and entered into between the Company and Mr. Babeux on May 2, 2006 is filed as Exhibit 10.01 to this report and is incorporated herein by reference.  </P>





<P>On May 2, 2006, the Company and Mr. Babeux executed a letter confirming that the Termination Agreement provided that the Company agreed to pay Mr. Babeux all commissions accrued and outstanding as of April 24, 2006 based on orders received up to and ending April 24, 2006 after such orders are shipped to the customer, and so long as such orders are shipped no later than October 24, 2006.</P>





<P>A copy of the Termination Agreement letter dated April 28, 2006 and executed by the Company and Mr. Babeux on May 2, 2006 is filed as Exhibit 10.02 to this report and is incorporated herein by reference.</P>





<P>On May 2, 2006, Mr. Babeux and the Company also executed a Release and Transaction with respect to the termination of Mr. Babeux's employment with the Company.  Pursuant to the Release and Transaction, Mr. Babeux agreed to be bound by covenants governing confidentiality, non-competition and non-solicitation.   </P>





<P>A copy of the Release and Transaction entered into between the Company and Mr. Babeux on May 2, 2006 is filed as Exhibit 10.03 to this report and is incorporated herein by reference.  </P>





<P>&nbsp;</P>


</FONT><P>&#9;</P>


<FONT SIZE=1>


</FONT><P>&nbsp;</P>


<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>


</FONT><B><FONT SIZE=2><P ALIGN="JUSTIFY">Item 9.01.  Financial Statements and Exhibits.</P>


</B></FONT><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&#9;<FONT SIZE=2>(d)   Exhibits.</P>


</FONT><B><P ALIGN="JUSTIFY"></P></B>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=602>


<TR><TD WIDTH="10%" VALIGN="BOTTOM">


<B><FONT SIZE=2><P>Number</P>


</FONT><FONT FACE="Arial" SIZE=2></B></FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<B><FONT SIZE=2><P>&nbsp;</B></FONT></TD>


<TD WIDTH="89%" VALIGN="BOTTOM">


<B><FONT SIZE=2><P>Description</P>


</FONT><FONT FACE="Arial" SIZE=2></B></FONT></TD>


</TR>


<TR><TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=2><P>10.01</FONT></TD>


<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>


<TD WIDTH="89%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=1><P>Termination Agreement between Sunrise Telecom Incorporated and Daniel Babeux entered into on May 2, 2006. </FONT></TD>


</TR>


<TR><TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=2><P>10.02</FONT></TD>


<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>


<TD WIDTH="89%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=1><P>Termination Agreement letter executed by Sunrise Telecom Incorporated and Daniel Babeux entered into on May 2, 2006. </FONT></TD>


</TR>


<TR><TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=2><P>10.03</FONT></TD>


<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>


<TD WIDTH="89%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=1><P>Release and Transaction between Sunrise Telecom Incorporated and Daniel Babeux dated entered into on May 2, 2006. </FONT></TD>


</TR>


</TABLE>


</CENTER></P>





<B><FONT SIZE=2><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">SIGNATURES </P>


</B></FONT><FONT FACE="Arial"><P>&nbsp;</P>


</FONT><FONT SIZE=1><P>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </P>


</FONT><FONT FACE="Arial">


<P>&nbsp;</P></FONT>


<TABLE CELLSPACING=0 BORDER=0 WIDTH=602>


<TR><TD WIDTH="44%" VALIGN="MIDDLE" COLSPAN=3>


<FONT FACE="Arial"><P>&nbsp;</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<P>&nbsp;</TD>


<TD WIDTH="1%" VALIGN="MIDDLE">


<FONT FACE="Arial"><P>&nbsp;</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<P>&nbsp;</TD>


<TD WIDTH="50%" VALIGN="TOP" COLSPAN=3>


<B><FONT SIZE=2><P ALIGN="CENTER">SUNRISE TELECOM INCORPORATED</P><DIR>





</B><P ALIGN="CENTER">(Registrant</FONT>)</DIR>


</TD>


</TR>


<TR><TD WIDTH="15%" VALIGN="MIDDLE" HEIGHT=16><P></P></TD>


<TD WIDTH="15%" VALIGN="MIDDLE" HEIGHT=16><P></P></TD>


<TD WIDTH="15%" VALIGN="MIDDLE" HEIGHT=16><P></P></TD>


<TD WIDTH="3%" VALIGN="MIDDLE" HEIGHT=16><P></P></TD>


<TD WIDTH="1%" VALIGN="MIDDLE" HEIGHT=16><P></P></TD>


<TD WIDTH="3%" VALIGN="MIDDLE" HEIGHT=16><P></P></TD>


<TD WIDTH="3%" VALIGN="MIDDLE" HEIGHT=16><P></P></TD>


<TD WIDTH="3%" VALIGN="MIDDLE" HEIGHT=16><P></P></TD>


<TD WIDTH="44%" VALIGN="MIDDLE" HEIGHT=16><P></P></TD>


</TR>


<TR><TD WIDTH="44%" VALIGN="TOP" COLSPAN=3>


<FONT SIZE=1><P>Date: May 5, 2006&nbsp;&nbsp;</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="1%" VALIGN="MIDDLE">


<FONT FACE="Arial" SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP">


<FONT SIZE=1><P>By:</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<FONT SIZE=1><P>&nbsp;</FONT></TD>


<TD WIDTH="44%" VALIGN="TOP">


<FONT FACE="Arial" SIZE=1><P ALIGN="CENTER"></P>


</FONT><FONT SIZE=1><P ALIGN="CENTER">/S/ PAUL A MARSHALL</P>


</FONT><FONT FACE="Arial" SIZE=1></FONT></TD>


</TR>


<TR><TD WIDTH="44%" VALIGN="MIDDLE" COLSPAN=3>


<FONT FACE="Arial"><P>&nbsp;</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<P>&nbsp;</TD>


<TD WIDTH="1%" VALIGN="MIDDLE">


<FONT FACE="Arial"><P>&nbsp;</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<P>&nbsp;</TD>


<TD WIDTH="3%" VALIGN="MIDDLE">


<FONT FACE="Arial"><P>&nbsp;</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM">


<P>&nbsp;</TD>


<TD WIDTH="44%" VALIGN="BOTTOM">


<B><FONT SIZE=1><P ALIGN="CENTER">Paul A. Marshall</P>


<P ALIGN="CENTER">Chief Executive Officer and President</B></FONT></TD>


</TR>


</TABLE>





<B><FONT SIZE=2><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">EXHIBIT INDEX</P>


</FONT><P ALIGN="CENTER"></P></B>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=602>


<TR><TD WIDTH="10%" VALIGN="BOTTOM">


<B><FONT SIZE=2><P>Number</P>


</FONT><FONT FACE="Arial" SIZE=2></B></FONT></TD>


<TD WIDTH="1%" VALIGN="BOTTOM">


<B><FONT SIZE=2><P>&nbsp;</B></FONT></TD>


<TD WIDTH="89%" VALIGN="BOTTOM">


<B><FONT SIZE=2><P>Description</P>


</FONT><FONT FACE="Arial" SIZE=2></B></FONT></TD>


</TR>


<TR><TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=2><P>10.01</FONT></TD>


<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>


<TD WIDTH="89%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=1><P>Termination Agreement between Sunrise Telecom Incorporated and Daniel Babeux entered into on May 2, 2006. </FONT></TD>


</TR>


<TR><TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=2><P>10.02</FONT></TD>


<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>


<TD WIDTH="89%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=1><P>Termination Agreement letter executed by Sunrise Telecom Incorporated and Daniel Babeux entered into on May 2, 2006. </FONT></TD>


</TR>


<TR><TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=2><P>10.03</FONT></TD>


<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>


<TD WIDTH="89%" VALIGN="TOP" HEIGHT=18>


<FONT SIZE=1><P>Release and Transaction between Sunrise Telecom Incorporated and Daniel Babeux dated entered into on May 2, 2006. </FONT></TD>


</TR>


</TABLE>


</CENTER></P>





<B>


<P ALIGN="RIGHT">&nbsp;</P>


<FONT SIZE=2><P ALIGN="RIGHT">Exhibit 10.01</P>


<P ALIGN="RIGHT"></P>


<P ALIGN="RIGHT">&nbsp;</P>


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<P ALIGN="RIGHT">&nbsp;</P>


<P ALIGN="RIGHT">Exhibit 10.02</P>


<P ALIGN="RIGHT"></P>


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<P ALIGN="RIGHT">Exhibit 10.03</P></B></FONT></BODY>


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{"company-data": {"conformed-name": "SUNRISE TELECOM INC", "cik": "0000907152", "assigned-sic": "4813", "irs-number": "770291197", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-30757", "film-number": "06813604"}, "business-address": {"street1": "302 ENZO DRIVE", "street2": "----------------------------------------", "city": "SAN JOSE", "state": "CA", "zip": "95138", "phone": "4083638000"}, "mail-address": {"street1": "302 ENZO DRIVE", "street2": "----------------------------------------", "city": "SAN JOSE", "state": "CA", "zip": "95138"}}
_
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 2, 2006
Sunrise Telecom Incorporated
(Exact name of registrant as specified in its charter)
Delaware
000-17781
77-0181864
(State or other jurisdiction
of incorporation)
(Commission File
Number)
(IRS Employer
Identification No.)
302 Enzo Drive, San Jose, California
95138
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code  (408) 363-8000
Not Applicable
(Former name or former address if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
___    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
___    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
___    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
___    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01  Entry into a Material Definitive Agreement.
On May 2, 2006, Sunrise Telecom Incorporated ("Company") entered into a Termination Agreement  (the "Termination Agreement") with Daniel Babeux, the Company's Vice President and General Manager of Cable Broadband Group.  Pursuant to the Termination Agreement, (i) the termination of Mr. Babeux's employment with the Company was effective on April 24, 2006 and (ii) the Company agreed to pay Mr. Babeux the equivalent of his base salary for a period of six months, and accrued vacation pay due and owing as of April 24, 2006, to continue to provide the Company's group insurance benefits to Mr. Babeux for a period of six months.
A copy of the Termination Agreement dated April 24, 2006 and entered into between the Company and Mr. Babeux on May 2, 2006 is filed as Exhibit 10.01 to this report and is incorporated herein by reference.
On May 2, 2006, the Company and Mr. Babeux executed a letter confirming that the Termination Agreement provided that the Company agreed to pay Mr. Babeux all commissions accrued and outstanding as of April 24, 2006 based on orders received up to and ending April 24, 2006 after such orders are shipped to the customer, and so long as such orders are shipped no later than October 24, 2006.
A copy of the Termination Agreement letter dated April 28, 2006 and executed by the Company and Mr. Babeux on May 2, 2006 is filed as Exhibit 10.02 to this report and is incorporated herein by reference.
On May 2, 2006, Mr. Babeux and the Company also executed a Release and Transaction with respect to the termination of Mr. Babeux's employment with the Company.  Pursuant to the Release and Transaction, Mr. Babeux agreed to be bound by covenants governing confidentiality, non-competition and non-solicitation.
A copy of the Release and Transaction entered into between the Company and Mr. Babeux on May 2, 2006 is filed as Exhibit 10.03 to this report and is incorporated herein by reference.
Item 9.01.  Financial Statements and Exhibits.
(d)   Exhibits.
Number
Description
10.01
Termination Agreement between Sunrise Telecom Incorporated and Daniel Babeux entered into on May 2, 2006.
10.02
Termination Agreement letter executed by Sunrise Telecom Incorporated and Daniel Babeux entered into on May 2, 2006.
10.03
Release and Transaction between Sunrise Telecom Incorporated and Daniel Babeux dated entered into on May 2, 2006.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SUNRISE TELECOM INCORPORATED
(Registrant
)
Date: May 5, 2006
By:
/S/ PAUL A MARSHALL
Paul A. Marshall
Chief Executive Officer and President
EXHIBIT INDEX
Number
Description
10.01
Termination Agreement between Sunrise Telecom Incorporated and Daniel Babeux entered into on May 2, 2006.
10.02
Termination Agreement letter executed by Sunrise Telecom Incorporated and Daniel Babeux entered into on May 2, 2006.
10.03
Release and Transaction between Sunrise Telecom Incorporated and Daniel Babeux dated entered into on May 2, 2006.
Exhibit 10.01
Exhibit 10.02
Exhibit 10.03