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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): June 21, 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 June 21, 2006, the Compensation Committee of the Board of Directors of Sunrise Telecom Incorporated (the "Company") adopted a Change of Control <A NAME="_DV_C6">Severance<A NAME="_DV_M4"></A></A> Plan (the &quot;Plan&quot;), effective June 21, 2006, to provide designated employees of the Company with additional incentives to remain with the Company in the event of, and through the duration of, defined change of control events.  </P>





<P>The Company's Chief Financial Officer, Richard D. Kent, and the Company's Vice President, General Counsel and Secretary, Kirk O. Williams, are the only executive officers of the Company eligible to receive payments under the Plan.  Under the terms of the Plan, if the employment of either Mr. Kent or Mr. Williams is terminated by the Company within four months prior to a change of control, or by the Company or the successor company within twelve months after a change of control, in each case by virtue of an involuntary termination other than for Cause or a Voluntary Termination for Good reason (as such terms are defined in the Plan), the Company or the successor company will provide him severance benefits consisting of a lump sum payment equal to twelve months of his base salary in effect at the time of termination of employment less applicable withholdings and one year of reimbursement for payments for COBRA.  In order to receive such benefits, such employee would need to execute a general release of claims.   </P>





<P>A copy of the Plan is filed as Exhibit 10.01 to this report and is incorporated herein by reference.  The summary of the foregoing terms of the Plan is qualified in its entirety by the actual terms and conditions of the Plan.</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>(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=2><P>Change of Control Severance Plan, effective June 21, 2006</FONT><FONT FACE="Arial" SIZE=2> </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: June 26, 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>Change of Control Severance Plan, effective June 21, 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>


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


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</HTML>
[{"type": "8-K", "sequence": "1", "filename": "rrd122564.htm", "secsgml_size_bytes": 11983}]
{"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": "06925454"}, "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): June 21, 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 June 21, 2006, the Compensation Committee of the Board of Directors of Sunrise Telecom Incorporated (the "Company") adopted a Change of Control
Severance
Plan (the "Plan"), effective June 21, 2006, to provide designated employees of the Company with additional incentives to remain with the Company in the event of, and through the duration of, defined change of control events.
The Company's Chief Financial Officer, Richard D. Kent, and the Company's Vice President, General Counsel and Secretary, Kirk O. Williams, are the only executive officers of the Company eligible to receive payments under the Plan.  Under the terms of the Plan, if the employment of either Mr. Kent or Mr. Williams is terminated by the Company within four months prior to a change of control, or by the Company or the successor company within twelve months after a change of control, in each case by virtue of an involuntary termination other than for Cause or a Voluntary Termination for Good reason (as such terms are defined in the Plan), the Company or the successor company will provide him severance benefits consisting of a lump sum payment equal to twelve months of his base salary in effect at the time of termination of employment less applicable withholdings and one year of reimbursement for payments for COBRA.  In order to receive such benefits, such employee would need to execute a general release of claims.
A copy of the Plan is filed as Exhibit 10.01 to this report and is incorporated herein by reference.  The summary of the foregoing terms of the Plan is qualified in its entirety by the actual terms and conditions of the Plan.
Item 9.01.  Financial Statements and Exhibits.
(d)   Exhibits.
Number
Description
10.01
Change of Control Severance Plan, effective June 21, 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: June 26, 2006
By:
/S/   PAUL A.  MARSHALL
Paul A. Marshall
Chief Executive Officer and President
EXHIBIT INDEX
Number
Description
10.01
Change of Control Severance Plan, effective June 21, 2006
Exhibit 10.01