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<title>Prepared By R.R. Donnelley Financial -- Form 8-K</title>
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<b>UNITED STATES </b></font></div>

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<b>SECURITIES AND EXCHANGE COMMISSION </b></font></div>

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<b>Washington, D.C. 20549 </b></font></div>

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<b>Form 8-K </b></font></div> <div><font Size="1">&nbsp;</font></div>

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<b>Current Report </b></font></div>

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<b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </b></font></div>

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<b>Date of Report (Date of earliest event reported):&nbsp;&nbsp;03/14/2006 </b></font></div>




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<b>Sunrise Telecom Incorporated </b></font></div>

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<b>(Exact name of registrant as specified in its charter)</b></font></div>

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<b>Commission File Number:&nbsp;&nbsp;000-17781</b></font></div>

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<b>(State or other jurisdiction of</b></font>
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<div Align="center"><font Face="times New Roman" Size="2" Color="#000000"><b>(IRS Employer</b></font>
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<b>incorporation)</b></font>
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<b>Identification No.)</b></font>
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<b>302 Enzo Drive, San Jose, CA 95138</b></font></div>


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<b>(Address of principal executive offices, including zip code)</b></font>
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<b>408-363-8000 </b></font>
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<b>(Registrant&#146;s telephone number, including area code)</b></font>
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<b> </b></font>
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<b>(Former name or former address, if changed since last report) </b></font>
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<b>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<BR><BR>
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<b>[&nbsp;&nbsp;]&nbsp;&nbsp;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>

[&nbsp;&nbsp;]&nbsp;&nbsp;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>


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


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Information to be included in the report</b>
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<b>Item 1.01.&nbsp;&nbsp;&nbsp;&nbsp;Entry into a Material Definitive Agreement</b></font>
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On March 14, 2006, Sunrise Telecom Incorporated ("Company") entered into a Separation Agreement (the "Separation Agreement") with Paul Ker-Chin Chang, the Company's Technology Advisor and former Chief Executive Officer.  Pursuant to the Separation Agreement, (i) the termination of Mr. Chang's employment with the Company was effective on March 15, 2006, (ii) the Company agreed to provide Mr. Chang a payment of $300,000 (less applicable taxes) upon his execution of a general release of liability and (iii) Mr. Chang agreed that the Company's designee(s) are authorized to continue to use his personal "chop" or equivalent evidence of authority to transact business on behalf of the Company or its subsidiaries through April 30, 2006.  Mr. Chang agreed that the payment constituted full accord and satisfaction of all amounts or other benefits due to Chang under his February 7, 2006 employment agreement with the Company in connection with a termination without cause. The Company also paid Mr. Chang all remaining accrued salary and paid time off on the books of the Company, totaling $73,307 (less applicable taxes).<p>A copy of the Separation Agreement is filed as Exhibit 10.01 of this Current Report on Form 8-K and is incorporated herein by reference.  The summary of the foregoing terms of the Separation Agreement is qualified in its entirety by the actual terms and conditions of the Separation Agreement.</div><div align="left" style="text-indent:4%"></font>
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<b>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</b></font>
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(c) Exhibits. </div><div align="left" style="text-indent:4%"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </div><div align="left" style="text-indent:4%">Number&nbsp;&nbsp;&nbsp; Description<p>10.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Separation Agreement between Sunrise Telecom Incorporated and Paul Ker-Chin Chang, dated March 14, 2006.</font>
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<b>Signature(s) </b></font>
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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. </font>
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	Sunrise Telecom Incorporated</font>
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	Date: March 20, 2006</font>
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	By:</font>
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	/s/&nbsp;&nbsp;&nbsp;&nbsp;PAUL A. MARSHALL</font>
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	Paul A. Marshall</font>
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	<div><font Face="times New Roman" Size="2" Color="#000000">Chief Executive Officer and President</font>
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<b>Exhibit Index </b></font>
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	<b>Exhibit&nbsp;No.</b></font>
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	<b>Description</b></font>
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	EX-10.01</font>
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	Separation Agreement between Sunrise Telecom Incorporated and Paul Ker-Chin Chang, dated March 14, 2006.</font>
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Prepared By R.R. Donnelley Financial -- Form 8-K
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):  03/14/2006
Sunrise Telecom Incorporated
(Exact name of registrant as specified in its charter)
Commission File Number:  000-17781
DE
77-0181864
(State or other jurisdiction of
(IRS Employer
incorporation)
Identification No.)
302 Enzo Drive, San Jose, CA 95138
(Address of principal executive offices, including zip code)
408-363-8000
(Registrant's telephone number, including area code)
(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 obligation 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))
Information to be included in the report
Item 1.01.    Entry into a Material Definitive Agreement
On March 14, 2006, Sunrise Telecom Incorporated ("Company") entered into a Separation Agreement (the "Separation Agreement") with Paul Ker-Chin Chang, the Company's Technology Advisor and former Chief Executive Officer.  Pursuant to the Separation Agreement, (i) the termination of Mr. Chang's employment with the Company was effective on March 15, 2006, (ii) the Company agreed to provide Mr. Chang a payment of $300,000 (less applicable taxes) upon his execution of a general release of liability and (iii) Mr. Chang agreed that the Company's designee(s) are authorized to continue to use his personal "chop" or equivalent evidence of authority to transact business on behalf of the Company or its subsidiaries through April 30, 2006.  Mr. Chang agreed that the payment constituted full accord and satisfaction of all amounts or other benefits due to Chang under his February 7, 2006 employment agreement with the Company in connection with a termination without cause. The Company also paid Mr. Chang all remaining accrued salary and paid time off on the books of the Company, totaling $73,307 (less applicable taxes).
A copy of the Separation Agreement is filed as Exhibit 10.01 of this Current Report on Form 8-K and is incorporated herein by reference.  The summary of the foregoing terms of the Separation Agreement is qualified in its entirety by the actual terms and conditions of the Separation Agreement.
Item 9.01.    Financial Statements and Exhibits
(c) Exhibits.
Number    Description
10.01          Separation Agreement between Sunrise Telecom Incorporated and Paul Ker-Chin Chang, dated March 14, 2006.
Signature(s)
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
Date: March 20, 2006
By:
/s/    PAUL A. MARSHALL
Paul A. Marshall
Chief Executive Officer and President
Exhibit Index
Exhibit No.
Description
EX-10.01
Separation Agreement between Sunrise Telecom Incorporated and Paul Ker-Chin Chang, dated March 14, 2006.