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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): April 27, 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>


<P>On April 27, 2006, Sunrise Telecom Incorporated ("Company") adopted a retention incentive bonus program for certain employees who remain employed with the Company over time, including executive officers.  To provide retention incentives, the Company offers three separate bonuses.  Each bonus payment is in an amount equal to one month of the eligible employee's annual salary as of April 27, 2006.  One bonus payment will be payable July 28, 2006 if the eligible employee remains with the Company.  The second bonus payment will be payable December 1, 2006, if the eligible employee remains with the Company and the Company has not filed its overdue reports with the Securities and Exchange Commission by July 28, 2006.  The third bonus payment will be payable May 4, 2007, if the eligible employee remains with the Company and the Company has not filed its overdue reports with the Securities and Exchange Commission by December 1, 2006.  </P>





<P>A copy of the Memorandum dated April 27, 2006 from Paul Marshall, the Company's Chief Executive Officer and President, announcing the retention incentive bonus program, is filed as Exhibit 10.01 to this report and is incorporated herein by reference.  </P>





<P>Three of the Company's executive officers may receive payments under the retention incentive bonus program.  The Company's Chief Financial Officer, Richard D. Kent could receive up to $51,750 additional compensation if all three payments under the program are made.  The Company's Vice President, General Counsel and Secretary, Kirk O. Williams could receive up to $46,875 additional compensation if all three payments under the program are made.  The Company's Chief Technology Officer, Jeong E. Joo could receive up to $42,500 additional compensation if all three payments under the program are made.  </P>


</FONT><FONT SIZE=1>


</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>(c)   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=2><P>Memorandum dated April 27, 2006 from Paul Marshall, Chief Executive Officer and President of Sunrise Telecom Incorporated, announcing the retention incentive bonus program</FONT></TD>


</TR>


</TABLE>


</CENTER></P>





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


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


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


</FONT><FONT SIZE=2><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 3, 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 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=2><P>Memorandum dated April 27, 2006 from Paul Marshall, Chief Executive Officer and President of Sunrise Telecom Incorporated announcing the retention incentive bonus program</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>


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


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</HTML>
[{"type": "8-K", "sequence": "1", "filename": "rrd116433.htm", "secsgml_size_bytes": 12287}]
{"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": "06803389"}, "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): April 27, 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 April 27, 2006, Sunrise Telecom Incorporated ("Company") adopted a retention incentive bonus program for certain employees who remain employed with the Company over time, including executive officers.  To provide retention incentives, the Company offers three separate bonuses.  Each bonus payment is in an amount equal to one month of the eligible employee's annual salary as of April 27, 2006.  One bonus payment will be payable July 28, 2006 if the eligible employee remains with the Company.  The second bonus payment will be payable December 1, 2006, if the eligible employee remains with the Company and the Company has not filed its overdue reports with the Securities and Exchange Commission by July 28, 2006.  The third bonus payment will be payable May 4, 2007, if the eligible employee remains with the Company and the Company has not filed its overdue reports with the Securities and Exchange Commission by December 1, 2006.
A copy of the Memorandum dated April 27, 2006 from Paul Marshall, the Company's Chief Executive Officer and President, announcing the retention incentive bonus program, is filed as Exhibit 10.01 to this report and is incorporated herein by reference.
Three of the Company's executive officers may receive payments under the retention incentive bonus program.  The Company's Chief Financial Officer, Richard D. Kent could receive up to $51,750 additional compensation if all three payments under the program are made.  The Company's Vice President, General Counsel and Secretary, Kirk O. Williams could receive up to $46,875 additional compensation if all three payments under the program are made.  The Company's Chief Technology Officer, Jeong E. Joo could receive up to $42,500 additional compensation if all three payments under the program are made.
Item 9.01.  Financial Statements and Exhibits.
(c)   Exhibits.
Number
Description
10.01
Memorandum dated April 27, 2006 from Paul Marshall, Chief Executive Officer and President of Sunrise Telecom Incorporated, announcing the retention incentive bonus program
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 3, 2006
By:
/S/   PAUL  A.  MARSHALL
Paul A. Marshall
Chief Executive Officer and President
EXHIBIT INDEX
Number
Description
10.01
Memorandum dated April 27, 2006 from Paul Marshall, Chief Executive Officer and President of Sunrise Telecom Incorporated announcing the retention incentive bonus program
Exhibit 10.01