Document:

Prepared by R.R. Donnelley Financial -- Amendment No. 4 to the Loan Agreement

 EXHIBIT 10.13 
  
 BANK OF AMERICA LOGO 
  
 AMENDMENT NO. 4 TO LOAN AGREEMENT 
  
 This Amendment No. 4 (the “Amendment”) dated as of May 13, 2002, is between Bank of America, N.A. (the “Bank”) and
Sunrise Telecom Incorporated (the “Borrower”). 
  
 RECITALS 
  
 A.    The Bank and the Borrower entered into a certain Business Loan Agreement dated as of May 22, 2000 (together with
any previous amendments, the “Agreement”). 
  
 B.    The Bank and the Borrower desire
to amend the Agreement. 
  
 AGREEMENT 
  
 1.  Definitions.    Capitalized terms used but not defined in this Amendment shall have the meaning given to them in the
Agreement. 
  
 2.  Amendments.    The Agreement is hereby amended
as follows: 
  
 2.1    In Paragraph 1.1(a) of the Agreement, the amount of
“Three Million Dollars ($3,000,000)” is substituted for the amount “Nine Million Dollars ($9,000,000)”. 
  
 2.2    In Paragraph 1.2 of the Agreement, the date “September 15, 2002” is substituted for the date “August 1, 2002.” 
  
 2.3    Paragraph 1.7 of the Agreement is deleted in its entirety. 
  
 2.4    Paragraph 9.6 of the Agreement is deleted in its entirety. 
  
 2.5    In Subparagraph 9.10(d) of the Agreement, the year “2003” is substituted for the year
“2001.” 
  
 2.6    A new Subparagraph 9.10(e) is added to the
Agreement, which reads in its entirety as follows: 
  
 “(e)  the purchase of its
shares for fiscal year 2002 that do not exceed an aggregate amount of Five Million Dollars ($5,000,000).” 
  
 2.7    Subparagraph 9.22(g)(iii) of the Agreement is deleted in its entirety. 
  
 2.8    New Paragraphs 9.24, 9.25 and 9.26 are added to the Agreement which read in their entirety as follows: 
  
 “9.24  Unencumbered Liquid Assets.    To hold Unencumbered Liquid Assets having an aggregate market value of not less than Fifteen Million Dollars
($15,000,000). 

 ‘Unencumbered Liquid Assets’ means the following assets owned by Borrower (excluding assets of any retirement
plan) which (i) are not the subject of any arrangement with any creditor to have his claim satisfied out of the asset (or proceeds thereof) prior to the general creditors of Borrower, and (ii) may be converted to cash within five (5) days: (a) Cash
or cash equivalents held in the United States; (b) United States Treasury or governmental agency obligations which constitute full faith and credit of the United States of America; (c) Commercial paper rated P-1 or Al by Moody’s or S&P,
respectively; (d) Fixed income instruments rated investment grade by one of the rating agencies described in (c) above; (e) Eligible Stocks; (f) Mutual funds quoted in The Wall Street Journal which invest primarily in the assets described in (a) -
(e) above. For purposes of this Agreement: ‘Eligible Stocks’ shall Include any common or preferred stock which (i) is not subject to statutory or contractual restrictions on sales, (ii) is traded on a U.S. national stock exchange or
included in the National Market tier of NASDAQ and (iii) has, as of the close of the most recent trading day, a per share price of at least $15. 
  
 9.25  EBITDA.    As of June 30, 2002 and on a consolidated basis, an EBITDA equal to but not more than a negative Two Million Dollars ($2,000,000).

  
 ‘EBITDA’ means net income, less income or plus loss from discontinued operations and
extraordinary items, plus income taxes, plus interest expense, plus depreciation, depletion, amortization and other non-cash charges. 
  
 9.26  Capital Expenditures.    Not to spend or incur obligations (including the total amount of any capital leases and acquisitions as allowed in Subparagraph
9.22(g), above) for more than Fifteen Million Dollars ($15,000,000) during the line-year to acquire fixed assets.” 
  
 3.  Representations and Warranties.    When the Borrower signs this Amendment, the Borrower represents and warrants to the Bank that: (a) there is no event which is, or with notice
or lapse of time or both would be, a default under the Agreement except those events, if any, that have been disclosed in writing to the Bank or waived in writing by the Bank, (b) the representations and warranties in the Agreement are true as of
the date of this Amendment as if made on the date of this Amendment, (c) this Amendment does not conflict with any law, agreement, or obligation by which the Borrower is bound, and (d) this Amendment is within the Borrower’s powers, has been
duly authorized, and does not conflict with any of the Borrower’s organizational papers. 
  
 4.  Effect of Amendment.    Except as provided in this Amendment, all of the terms and conditions of the Agreement shall remain in full force and effect. 
  
 5.  Counterparts.    This Amendment may be executed in counterparts, each of which when
so executed shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. 
  
 6.  FINAL AGREEMENT.    THIS WRITTEN AMENDMENT REPRESENTS THE FINAL AGREEMENT BETWEEN AND AMONG THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT 

  
 ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG
THE PARTIES. 
  
 This Amendment is executed as of the date stated at the beginning of this Amendment.

  
  
  
 
	 BANK OF AMERICA, N.A.
 
	 
	 By:
 	 	 /S/    GREG COHN
      
 

	  	 	 Greg Cohn
 Vice
President
 
	  
	  
	 SUNRISE TELECOM INCORPORATED
 
	 
	 By:
 	 	 /s/    PAUL CHANG        

	  	 	 Paul Chang
 President/Chief
Executive Officer
 
	  
	  
	 
	 By:
 	 	 /s/    PETER
EIDELMAN        
 

	  	 	 Peter Eidelman
 Treasurer/Chief
Financial Officer
 

 
 

 3Prepared by R.R. Donnelley Financial -- Letter Agreement dated 06/12/2002

  
 Exhibit 10.37 
  
 
	 

 	 	  	 	 1388 N. Tech Boulevard
 Gilbert, AZ 85233
 480.556.5555 Tel
 480.315.3745 Fax
 www.CatalyticaEnergy.com
 

 
  
 
 
 
	 Ricardo Levy
 1207 Windimer Drive
 Los Altos, CA 94024
 	 	 June 12, 2002
 

 
  
 Dear Ricardo, 
  
 We are delighted that you have agreed to serve as President and CEO of Catalytica Energy Systems, Inc. effective June 1, 2002. This letter confirms the details of your employment in this position as
submitted to the Board of Directors. Your compensation includes base salary, annual bonus and stock options. Specifics are listed below. 
  
 Salary 
 Your salary will be $22,084 per month, which annualizes to $265,000. You will receive semi-monthly paychecks consistent with our payroll cycle.

  
 Bonus 
 You will be eligible for an annual bonus at a
target of 35% of your salary. This bonus is subject to Compensation Committee review and approval at the end of your interim assignment. 
  
 Stock Options 
 As part of your employment agreement you will be granted stock options in the amount of 30,000 shares of Catalytica Energy Systems, Inc.
These options will be granted after Board approval and will be priced on the date they are approved. They will be subject to the standard 4-year vesting schedule. 
  
 Benefits 
 Effective upon your date of hire, you and your eligible dependents will be eligible for coverage under the
Catalytica Energy Systems, Inc. health (medical, dental, and prescription drugs), long term disability, and life insurance plans. On July 1, 2002 you will be able to participate in the Employee Stock Purchase Plan at a discounted price.

  
 On the first of the month following three months of employment, you will be eligible to participate in the 401(k) retirement plan. The
401(k) plan includes a 60% match (up to 6% of your eligible deferral compensation) and immediate vesting of all company contributions. 
  
 I
look forward to working with you as a key member of the Catalytica Energy Systems Leadership Team. Please indicate your agreement to these employment considerations by signing below and returning the original to me. 
  
 Sincerely yours, 
 
	 
	 /s/    ALESIA MARTIN
 

	 Alesia Martin
 Vice President, Human Resources
 

 
  
 I accept the compensation terms of employment described in this letter. 

 
 
	 /s/    RICARDO B. LEVY
 
	  	 June 19, 2002
 

	 Ricardo B. Levy
 	  	 DatePrepared by R.R. Donnelley Financial -- Letter Agreement dated 06/26/2002

  
 Exhibit 10.38 
  
 
	 

 	 	  	 	 1388 N. Tech Boulevard
 Gilbert, AZ 85233
 480.556.5555 Tel
 480.315.3745 Fax
 www.CatalyticaEnergy.com
 

 
  
 
 
 June 26,
2002 
  
  
 Mr. Craig Kitchen 
 1893 W. Encinas St. 
 Gilbert, AZ 85233-2314 
  
  
 Dear Craig: 
  
 Thank you for your decision to remain on the Board of Directors of
Catalytica Energy Systems, Inc. I am very excited to have your continued input on the direction of our Company. As with all Board members, you will be receiving an annual retainer (currently $20,000 per annum, paid in quarterly installments) and you
will be issued initial stock options of 20,000 shares. 
  
 In addition to the 20,000 shares that you will be granted, you have been
previously granted options for your service as CEO. For purposes of this letter, we will refer to them as the Pre-2002 options and the 2002 options. 
  
 The Pre-2002 options total 174,717 as detailed in the following schedule: 
  
 
	 Grant
 Date

	  	 Qty
 Granted

	  	 Qty
 Vested

	  	 Exercise
 Price
 

	 7/31/00
 	  	 13,332
 	  	   4,722
 	  	 $26.500
 
	 7/31/00
 	  	 61,668
 	  	 29,654
 	  	 $26.500
 
	 1/24/01
 	  	 84,717
 	  	 37,652
 	  	 $14.312
 
	 2/23/01
 	  	 15,000
 	  	   4,688
 	  	 $16.937
 

 
  
 The 2002 options total 132,500 and none of these options were vested as of May 31, 2002.

  
 The Company proposes that you retain your rights and continue to vest in all of the Pre-2002 options per our normal vesting schedule.
This action recognizes your performance as CEO, and affirms your commitment to the Company and your belief in the long-term value of Catalytica. 
  
 Regarding the 2002 options we propose a different treatment. As you recall, these options were issued specifically to encourage future performance as CEO. Your resignation on May 31,2002 has changed the circumstances. Although
vesting of these options did not occur, the Company proposes that you should retain a proportionate ownership of the options representing the period of service as CEO. The four-month period from February 2002 (issue month) through May 2002
represents 4/48 of the normal vesting period. Accordingly, we propose this ratio, which equates to 11,042 shares (of the 132,500 options) be applied to issue a revised 2002 stock option award. The prior grant will be cancelled and this new grant
will be issued at $3.53, the options original strike price. 
  
 Please sign and return this letter documenting our mutual understanding of
the aforementioned terms. 
  
 Craig, I appreciate all of the contributions that you have made to Catalytica and I value the relationship
that we have developed. I look forward to our continued business relationship. 
  
 Best regards, 
 
	 
	 /s/    RICARDO B. LEVY
 

	 Ricardo B. Levy
 Chairman and CEO
 Catalytica Energy Systems, Inc.
 

 
  
 I acknowledge the terms and conditions set forth in this letter including the cancellation
of the 2002 options. 
  
 
	 /s/    CRAIG N. KITCHEN
 
	  	 July 24, 2002
 

	 Craig N. Kitchen
 	  	 Date

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