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                                                                    EXHIBIT 10.3

[LOGO] Bank of America
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                                                         Business Loan Agreement

This Agreement dated as of November 9, 1999, is between Bank of America, N.A.
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(the "Bank") and Sunrise Telecom, Inc. (the "Borrower").

1.   LINE OF CREDIT AMOUNT AND TERMS

1.1  Line of Credit Amount.

(a)  During the availability period described below, the Bank will provide a
     line of credit to the Borrower. The amount of the line of credit (the
     "Commitment") is Three Million and 00/100 Dollars ($3,000,000.00).

(b)  This is a revolving line of credit providing for cash advances and letters
     of credit. During the availability period, the Borrower may repay principal
     amounts and reborrow them.

(c)  The Borrower agrees not to permit the outstanding principal balance of
     advances under the line of credit plus the outstanding amounts of any
     letters of credit, including amounts drawn on letters of credit and not yet
     reimbursed, to exceed the Commitment.

1.2  Availability Period. The line of credit is available between the date of
this Agreement and October 1, 2000, or such earlier date as the availability may
terminate as provided in this Agreement (the "Expiration Date"),

1.3  Interest Rate.

(a)  Unless the Borrower elects an optional interest rate as described below,
     the interest rate is the Bank's Prime Rate.

(b)  The Prime Rate is the rate of interest publicly announced from time to time
     by the Bank as its Prime Rate. The Prime Rate is set by the Bank based on
     various factors, including the Bank's costs and desired return, general
     economic conditions and other factors, and is used as a reference point for
     pricing some loans. The Bank may price loans to its customers at, above, or
     below the Prime Rate. Any change in the Prime Rate shall take effect at the
     opening of business on the day specified in the public announcement of a
     change in the Bank's Prime Rate.

1.4  Repayment Terms.

(a)  The Borrower will pay interest on November 1, 1999, and then monthly
     thereafter until payment in full of any principal outstanding under this
     line of credit.

(b)  The Borrower will repay in full all principal and any unpaid interest or
     other charges outstanding under this line of credit no later than the
     Expiration Date. Any interest period for an optional interest rate (as
     described below) shall expire no later than the Expiration Date.

1.5  Optional Interest Rates. Instead of the interest rate based on the Bank's
Prime Rate, the Borrower may elect the optional interest rates listed below
during interest periods agreed to by the Bank and the Borrower. The optional
interest rates shall be subject to the terms and conditions described later in
this Agreement. Any principal amount bearing interest at an optional rate under
this Agreement is referred to as a "Portion." The following optional interest
rates are available:

(a)  Short Term Fixed Rates.

1.6  Letters of Credit.

(a)  This line of credit may be used for financing:

     (i)    commercial letters of credit with a maximum maturity of 180 days but
            not to extend more than 90 days beyond the Expiration Date. Each
            commercial letter of credit will require drafts payable at sight.

     (ii)   standby letters of credit with a maximum maturity of 365 days but
            not to extend more than 90 days beyond the Expiration Date.

     (iii)  The amount of letters of credit outstanding at any one time
            (including amounts drawn on letters of credit and not yet
            reimbursed) may not exceed Two Hundred Fifty Thousand and 00/100
            Dollars ($250,000.00).

(b)  The Borrower agrees:

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     (i)    any sum drawn under a letter of credit may, at the option of the
            Bank, be added to the principal amount outstanding under this
            Agreement. The amount will bear interest and be due as described
            elsewhere in this Agreement.

     (ii)   if there is a default under this Agreement, to immediately prepay
            and make the Bank whole for any outstanding letters of credit.

     (iii)  the issuance of any letter of credit and any amendment to a letter
            of credit is subject to the Bank's written approval and must be in
            form and content satisfactory to the Bank and in favor of a
            beneficiary acceptable to the Bank.

     (iv)   to sign the Bank's form Application and Agreement for Commercial
            Letter of Credit or Application and Agreement for Standby Letter of
            Credit.

     (v)    to pay any issuance and/or other fees that the Bank notifies the
            Borrower will be charged for issuing and processing letters of
            credit for the Borrower.

     (vi)   to allow the Bank to automatically charge its checking account for
            applicable fees, discounts, and other charges.

2.  OPTIONAL INTEREST RATES

2.1  Optional Rates. Each optional interest rate is a rate per year. Interest
will be paid on the last day of each interest period, and on the first day of
each month during the interest period. At the end of any interest period, the
interest rate will revert to the rate based on the Prime Rate, unless the
Borrower has designated another optional interest rate for the Portion. No
Portion will be converted to a different interest rate during the applicable
interest period. Upon the occurrence of an event of default under this
Agreement, the Bank may terminate the availability of optional interest rates
for interest periods commencing after the default occurs.

2.2  Short Term Fixed Rate. The election of Short Term Fixed Rates shall be
subject to the following terms and requirements:

(a)  The "Short Term Fixed Rate" means the fixed interest rate the Bank and the
     Borrower agree will apply during the applicable interest period.

(b)  The interest period during which the Short Term Fixed Rate will be in
     effect will be no shorter than 30 days and no longer than one year.

(c)  Each Short Term Fixed Rate Portion will be for an amount not less than the
     following:

     (i)  for interest periods of 91 days or longer, Five Hundred Thousand
          Dollars ($500,000).

     (ii) for interest periods of between 30 days and 90 days, One Million
          Dollars ($1,000,000).

(d)  Each prepayment of a Short Term Fixed Rate Portion, whether voluntary, by
     reason of acceleration or otherwise, will be accompanied by the amount of
     accrued interest on the amount prepaid, and a prepayment fee as described
     below. A "prepayment" is a payment of an amount on a date earlier than the
     scheduled payment date for such amount as required by this Agreement.

[(e) The prepayment fee shall be in an amount sufficient to compensate the Bank
     for any loss, cost or expense incurred by it as a result of the prepayment,
     including any loss of anticipated profits and any loss or expense arising
     from the liquidation or reemployment of funds obtained by it to maintain
     such Portion or from fees payable to terminate the deposits from which such
     funds were obtained. The Borrower shall also pay any customary
     administrative fees charged by the Bank in connection with the foregoing.
     For purposes of this paragraph, the Bank shall be deemed to have funded
     each Portion by a matching deposit or other borrowing in the applicable
     interbank market, whether or not such Portion was in fact so funded.]

[(f) The prepayment fee shall be equal to the amount (if any) by which:

     (i)  the additional interest which would have been payable during the
          interest period on the amount prepaid had it not been prepaid, exceeds

     (ii) the interest which would have been recoverable by the Bank by placing
          the amount prepaid on deposit in the domestic certificate of deposit
          market, the eurodollar deposit market, or other appropriate money
          market

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          selected by the Bank for a period starting on the date on which it was
          prepaid and ending on the last day of the interest period for such
          Portion (or the scheduled payment date for the amount prepaid, if
          earlier).]

3.  FEES AND EXPENSES

3.1  Fees.

(a)  Loan fee. The Borrower agrees to pay a loan fee in the amount of Seven
     Thousand Five Hundred and 00/100 Dollars ($7,500,00). This fee is due on or
     before the date of this Agreement.

(b)  Waiver fee. If the Bank, at its discretion, agrees to waive or amend any
     terms of this Agreement, the Borrower will, at the Bank's option, pay the
     Bank a fee for each waiver or amendment in an amount advised by the Bank at
     the time the Borrower requests the waiver or amendment. Nothing in this
     paragraph shall imply that the Bank is obligated to agree to any waiver or
     amendment requested by the Borrower. The Bank may impose additional
     requirements as a condition to any waiver or amendment.

3.2  Reimbursement Costs.

(a)  The Borrower agrees to reimburse the Bank for any expenses it incurs in the
     preparation of this Agreement and any agreement or instrument required by
     this Agreement. Expenses include, but are not limited to, reasonable
     attorneys' fees, including any allocated costs of the Bank's in-house
     counsel.

(b)  The Borrower agrees to reimburse the Bank for the cost of periodic audits
     and appraisals of the personal property collateral securing this Agreement,
     at such intervals as the Bank may reasonably require. The audits and
     appraisals may be performed by employees of the Bank or by independent
     appraisers.

4.  COLLATERAL

4.1  Personal Property. The Borrower's obligations to the Bank under this
Agreement will be secured by personal property the Borrower now owns or will own
in the future as listed below. The collateral is further defined in security
agreement(s) executed by the Borrower. In addition, all personal property
collateral securing this Agreement shall also secure all other present and
future obligations of the Borrower to the Bank (excluding any consumer credit
covered by the federal Truth in Lending law, unless the Borrower has otherwise
agreed in writing). All personal property collateral securing any other present
or future obligations of the Borrower to the Bank shall also secure this
Agreement.

(a)  Inventory.

(b)  Receivables.

4.2  Personal Property Supporting Guaranty. The obligations of the guarantor,
Hukk Engineering, Inc., to the Bank will be secured by personal property the
guarantor now owns or will own in the future as listed below. The collateral is
further defined in security agreement(s) executed by the guarantor.

(a}  Inventory.

(b)  Receivables.

5.  DISBURSEMENTS, PAYMENTS AND COSTS

5.1  Telephone and Telefax Authorization.

(a)  The Bank may honor telephone or telefax instructions for advances or
     repayments or for the designation of optional interest rates and telefax
     requests for the issuance of letters of credit given, or purported to be
     given, by any one of the Individuals authorized to sign loan agreements on
     behalf of the Borrower, or any other individual designated by any one of
     such authorized signers.

(b)  Advances will be deposited in and repayments will be withdrawn from the
     Borrower's account number 14871-03852, or such other of the Borrower's
     accounts with the Bank as designated in writing by the Borrower.

(c)  The Borrower will indemnify and hold the Bank harmless from all liability,
     loss, and costs in connection with any act resulting from telephone or
     telefax instructions the Bank reasonably believes are made by any
     individual authorized

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     by the Borrower to give such instructions. This paragraph will survive this
     Agreement's termination, and will benefit the Bank and its officers,
     employees, and agents.

5.2  Direct Debit (Pre-Billing). The Borrower agrees that the Bank will debit
the Borrower's deposit account number 14871-03852, or such other of the
Borrower's accounts with the Bank as designated in writing by the Borrower (the
"Designated Account") on the date each payment of principal and interest and any
fees from the Borrower becomes due (the "Due Date"). Approximately 10 days prior
to each Due Date, the Bank will mail to the Borrower a statement of the amounts
that are expected to be due on that Due Date, based on current information (the
"Billed Amount"). The Bank will debit the Designated Account for the Billed
Amount, regardless of the actual amount due on that date (the "Accrued Amount").
If the Billed Amount debited to the Designated Account differs from the Accrued
Amount, the discrepancy will be added or subtracted from the amount due on the
next due date. Regardless of any such discrepancy, interest will continue to
accrue based on the actual amount of principal outstanding without compounding.
The Bank will not pay the Borrower interest on any overpayment. If there are
insufficient funds in the Designated Account on the date the Bank enters any
debit authorized by this Agreement, the debit will be reversed.

5.3  Banking Days. Unless otherwise provided in this Agreement, a banking-day is
a day other than a Saturday or a Sunday on which the Bank is open for business
in California. All payments and disbursements which would be due on a day which
is not a banking day will be due on the next banking day. All payments received
on a day which is not a banking day will be applied to the credit on the next
banking day.

5.4  Additional Costs. The Borrower will pay the Bank, on demand, for the Bank's
costs or losses arising from any statute or regulation, or any request or
requirement of a regulatory agency which is applicable to all national banks or
a class of all national banks. The costs and losses will be allocated to the
loan in a manner determined by the Bank, using any reasonable method. The costs
include the following:

(a)  any reserve or deposit requirements; and

(b)  any capital requirements relating to the Bank's assets and commitments for
     credit.

5.5  Interest Calculation. Except as otherwise stated in this Agreement, all
interest and fees, if any, will be computed on the basis of a 360-day year and
the actual number of days elapsed. This results in more interest or a higher fee
than if a 365-day year is used. Installments of principal which are not paid
when due under this Agreement shall continue to bear interest until paid.

5.6  Default Rate. Upon the occurrence of any default under this Agreement,
principal amounts outstanding under this Agreement will at the option of the
Bank bear interest at a rate which is 2 percentage point(s) higher than the rate
of interest otherwise provided under this Agreement. This will not constitute a
waiver of any default.

5.7  Interest Compounding. At the Bank's sole option in each instance, any
interest, fees or costs which are not paid when due under this Agreement shall
bear interest from the due date at the Bank's Prime Rate plus 2 percentage
points. This may result in compounding of interest.

6.  CONDITIONS

The Bank must receive any documents and other items it may reasonably require,
including but not limited to the following items, in form and content acceptable
to the Bank, before it is required to extend any credit to the Borrower under
this Agreement.

6.1  Authorizations. Evidence that the execution, delivery and performance by
the Borrower and each guarantor of this Agreement and any instrument or
agreement required under this Agreement have been duly authorized.

6.2  Governing Documents. A copy of the Borrower's articles of incorporation.

6.3  Security Agreements. Signed original security agreements, assignments,
financing statements and fixture filings (together with collateral in which the
Bank requires a possessory security interest), which the Bank requires.

6.4  Evidence of Priority. Evidence that security interests and liens in favor
of the Bank are valid, enforceable, and prior to all others' rights and
interests, except those the Bank consents to in writing.

6.5  Guaranty. A guaranty signed by Hukk Engineering, Inc. in the amount of
Three Million Dollars ($3,000,000).

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7.  REPRESENTATIONS AND WARRANTIES

When the Borrower signs this Agreement, and until the Bank is repaid in full,
the Borrower makes the following representations and warranties. Each request
for an extension of credit constitutes a renewed representation:

7.1  Organization of Borrower. The Borrower is a corporation duly formed and
existing under the laws of the state where organized.

7.2  Authorization. This Agreement has been duly authorized and is enforceable
without conflict with any laws or any other obligation of the Borrower.

7.3  Good Standing. in each state in which the Borrower does business, it is
properly licensed, in good standing, and, where required, in compliance with
fictitious name statutes.

7.4  Lawsuits. There is no lawsuit, tax claim or other dispute pending or
threatened against the Borrower which, if lost, would impair the Borrower's
financial condition or ability to repay the loan, except as have been disclosed
in writing to the Bank.

7.5  Permits, Franchises. The Borrower possesses all permits, memberships,
franchises, contracts and licenses required and all trademark rights, trade name
rights, patent rights and fictitious name rights necessary to enable it to
conduct the business in which it is now engaged.

7.6  Location of Borrower. The Borrower's place of business (or, if the Borrower
has more than one place of business, its chief executive office) is located at
the address listed under the Borrower's signature on this Agreement.

7.7  Year 2000 Compliance. The Borrower has developed and budgeted for a
comprehensive program to address the "year 2000 problem" (that Is, the inability
of computers, as well as embedded microchips in non-computing devices, to
properly perform date-sensitive functions with respect to certain dates prior to
and after December 31, 1999). The Borrower has implemented that program
substantially in accordance with its timetable and budget and reasonably
anticipates that it will substantially avoid the year 2000 problem as to all
computers, as well as embedded microchips in non-computing devices, that are
material to the Borrower's business, properties or operations. The Borrower has
developed adequate contingency plans to ensure uninterrupted and unimpaired
business operation in the event of a failure of its own or a third party's
systems or equipment due to the year 2000 problem, including those of vendors,
customers, and suppliers, as well as a general failure of or interruption in its
communications and delivery infrastructure.

8.  COVENANTS

The Borrower agrees, so long as credit is available under this Agreement and
until the Bank is repaid in full:

8.1  Use of Proceeds. To use the proceeds of the credit only for financing short
term operation needs and business acquisitions.

8.2  Financial Information. To provide the following financial information and
statements in form and content acceptable to the Bank, and such additional
information as requested by the Bank from time to time:

(a)  Within 120 days of the Borrower's fiscal year end, the Borrower's annual
     financial statements. These financial statements must be audited (with an
     unqualified opinion) by a Certified Public Accountant ("CPA") acceptable to
     the Bank. The statements shall be prepared on a consolidated basis.

(b)  Within 120 days of the Borrower's fiscal year end, the Borrower's annual
     financial statements. These financial statements may be Borrower preapred.

(c)  Within 45 days of the period's end, the Borrower's quarterly financial
     statements. These financial statements may be Borrower prepared. The
     statements shall be prepared on a consolidated basis.

(d)  Within the period(s) provided in (c) above, a compliance certificate of the
     Borrower signed by an authorized financial officer of the Borrower setting
     forth (i) the information and computations (in sufficient detail) to
     establish that the Borrower is in compliance with all financial covenants
     at the end of the period covered by the financial statements then being
     furnished and (ii) whether there existed as of the date of such financial
     statements and whether there exists as of the date of the certificate, any
     default under this Agreement and, if any such default exists, specifying
     the nature thereof and the action the Borrower is taking and proposes to
     take with respect thereto.

(e)  Within 120 days of Hukk Engineering Inc.'s fiscal year end, Hukk
     Engineering, Inc.'s annual financial statements. These financial statements
     may be company prepared.

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(f)  Within 45 days of the period's end. Hukk Engineering, Inc.'s quarterly
     financial statements. These financial statements may be company prepared.

(g)  Within 120 days of the Borrower's fiscal year end, the Borrower's annual
     budget, including balance sheet, income statement, and cash flow projected
     on a monthly basis, These statements may be Borrower prepared.

8.3  Quick Ratio. To maintain a ratio of quick assets to current liabilities of
at least 1.5:1.0.

"Quick assets" means cash plus non-foreign accounts receivable, short-term cash
investments in non-affiliated entities, net trade receivables and marketable
securities not classified as long-term investments. "Current liabilities" shall
include (a) all obligations classified as current liabilities under generally
accepted accounting principles, plus (b) all principal amounts outstanding under
revolving lines of credit, whether classified as current or long-term, which are
not already included under (a) above.

8.4  Total Liabilities to Tangible Net Worth. To maintain a ratio of total
liabilities to tangible net worth not exceeding 0.75:1.0.

"Total liabilities" means the sum of current liabilities plus long term
liabilities.

"Tangible net worth" means the gross book value of the Borrower's assets
(excluding goodwill, patents, trademarks, trade names, organization expense,
unamortized debt discount and expense, capitalized or deferred research and
development costs, deferred marketing expenses, deferred receivables, and other
like intangibles, and monies due from affiliates, officers, directors, employees
or shareholders of the Borrower) less total liabilities, including but not
limited to accrued and deferred income taxes, and any reserves against assets.

8.5  Profitability. To maintain on a consolidated basis a positive net income
after taxes and extraordinary items for each quarterly accounting period and at
fiscal year end.

8.6  Other Debts. Not to have outstanding or incur any direct or contingent
liabilities (other than those to the Bank), or become liable for the liabilities
of others, without the Bank's written consent. This does not prohibit:

(a)  Acquiring goods, supplies, or merchandise on normal trade credit.

(b)  Endorsing negotiable instruments received in the usual course of business.

(c)  Obtaining surety bonds in the usual course of business.

(d)  Liabilities and lines of credit in existence on the date of this Agreement
     disclosed in writing to the Bank.

(e)  Additional debts which do not exceed a total principal amount of One
     Million Dollars ($1,000,000) outstanding at any one time.

8.7  Other Liens. Not to create, assume, or allow any security interest or lien
(including judicial liens) on property the Borrower now or later owns, except:

(a)  Deeds of trust and security agreements in favor of the Bank.

(b)  Liens for taxes not yet due.

(c)  Liens outstanding on the date of this Agreement disclosed in writing to the
     Bank.

(d)  Additional liens which secure obligations in a total principal amount not
     exceeding One Million Dollars ($1,000,000).

8.8  Capital Expenditures. Not to spend or incur obligations (including the
total amount of any capital leases) for more than Three Million Dollars
($3,000,000) in any single fiscal year to acquire fixed assets.

8.9  Dividends. Not to declare or pay any dividends on any of its shares, and
not to purchase, redeem or otherwise acquire for value any of its shares, or
create any sinking fund in relation thereto, except:

(a)  dividends payable in its capital stock;

(b)  from earnings available for dividends and earned during the immediately
     preceding fiscal year, and in any event, not in excess of Seven Hundred
     Fifty Thousand Dollars ($750,000) in any one fiscal year.

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8.10  Change of Ownership. Not to cause, permit, or suffer any change, direct or
indirect, in the Borrower's capital ownership.

8.11  Paydown Period. To reduce the amount of advances outstanding under this
Agreement to[ zero] for a period of at least 30 consecutive days in each line-
year. "Line-year" means the period between the date of this Agreement and
October 1, 2000, and each subsequent one-year period (if any). For the purposes
of this paragraph, "advances" does not include undrawn amounts of outstanding
letters of credit.

8.12  Stock Purchase, Redemption. Not to purchase, redeem or otherwise acquire
for value any of its shares, or create any sinking fund in relation thereto,
except an amount in any fiscal year not to exceed 20% of the Borrower's net
income for the previous fiscal year.

8.13  Notices to Bank. To promptly notify the Bank in writing of:

(a)  any lawsuit over Two Hundred Fifty Thousand Dollars ($250,000) against the
     Borrower (or any guarantor).

(b)  any substantial dispute between the Borrower (or any guarantor) and any
     government authority.

(c)  any event of default under this Agreement, or any event which, with notice
     or lapse of time or both, would constitute an event of default.

(d)  any material adverse change in the Borrower's (or any guarantor's) business
     condition (financial or otherwise), operations, properties or prospects, or
     ability to repay the credit.

(e)  any change in the Borrower's name, legal structure, place of business, or
     chief executive office if the Borrower has more than one place of business.

(f)  any actual contingent liabilities of the Borrower (or any guarantor), and
     any such contingent liabilities which are reasonably foreseeable.

8.14  Audits. To allow the Bank and its agents to inspect the Borrower's
properties and examine, audit, and make copies of books and records at any
reasonable time. If any of the Borrower's properties, books or records are in
the possession of a third party, the Borrower authorizes that third party to
permit the Bank or its agents to have access to perform inspections or audits
and to respond to the Bank's requests for information concerning such
properties, books and records. The Bank has no duty to inspect the Borrower's
properties or to examine, audit, or copy books and records and the Bank shall
not incur any obligation or liability by reason of not making any such
inspection or inquiry. In the event that the Bank inspects the Borrower's
properties or examines, audits, or copies books and records, the Bank will be
acting solely for the purposes of protecting the Bank's security and preserving
the Bank's rights under this Agreement. Neither the Borrower nor any other party
is entitled to rely on any inspection or other inquiry by the Bank. The Bank
owes no duty of care to protect the Borrower or any other party against, or to
inform the Borrower or any other party of, any adverse condition that may be
observed as affecting the Borrower's properties or premises, or the Borrower's
business. In the event that the Bank has a duty or obligation under applicable
laws, regulations or legal requirements to disclose any report or findings made
as a result of, or in connection with, any site visit, observation or testing by
the Bank, the Bank may make such a disclosure to the Borrower or any other
party.

8.15  Compliance with Laws. To comply with the laws (including any fictitious
name statute), regulations, and orders of any government body with authority
over the Borrower's business.

8.16  Perfection of Liens. To help the Bank perfect and protect its security
interests and liens, and reimburse it for related costs it incurs to protect its
security interests and liens.

8.17  Insurance.

(a)  Insurance Covering Collateral. To maintain all risk property damage
     insurance policies covering the tangible property comprising the
     collateral. Each insurance policy must be in an amount acceptable to the
     Bank. The insurance must be issued by an insurance company acceptable to
     the Bank and must include a lender's loss payable endorsement in favor of
     the Bank in a form acceptable to the Bank.

(b)  General Business Insurance. To maintain insurance as is usual for the
     business it is in.

(c)  Evidence of Insurance. Upon the request of the Bank, to deliver to the Bank
     a copy of each insurance policy, or, if permitted by the Bank, a
     certificate of insurance listing all insurance in force.

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8.18  Additional Negative Covenants. Not to, without the Bank's written consent:

(a)  engage in any business activities substantially different from the
     Borrower's present business.

(b)  liquidate or dissolve the Borrower's business.

(c)  enter into any consolidation, merger, or other combination, or become a
     partner in a partnership, a member of a joint venture, or a member of a
     limited liability company.

(d)  sell, assign, lease, transfer or otherwise dispose of any assets for less
     than fair market value, or enter into any agreement to do so.

(e)  sell, assign, lease, transfer or otherwise dispose of all or a substantial
     part of the Borrower's business or the Borrower's assets except in the
     ordinary course of the Borrower's business.

(f)  enter into any sale and leaseback agreement covering any of its fixed
     assets.

(g)  acquire or purchase a business or its assets for a consideration, including
     assumption of direct or contingent debt, in excess of One Million Five
     Hundred Thousand Dollars ($1,500,000) in the aggregate.

8.19  Bank as Principal Depository. To maintain the Bank as its principal
depository bank, including for the maintenance of business, cash management,
operating and administrative deposit accounts.

9.  HAZARDOUS WASTE INDEMNIFICATION

The Borrower will indemnify and hold harmless the Bank from any loss or
liability directly or indirectly arising out of the use, generation,
manufacture, production, storage, release, threatened release, discharge,
disposal or presence of a hazardous substance. This indemnity will apply whether
the hazardous substance is on, under or about the Borrower's property or
operations or property leased to the Borrower. The indemnity includes but is not
limited to attorneys' fees (including the reasonable estimate of the allocated
cost of in-house counsel and staff). The indemnity extends to the Bank, its
parent, subsidiaries and all of their directors, officers, employees, agents,
successors, attorneys and assigns. "Hazardous substances" means any substance,
material or waste that is or becomes designated or regulated as "toxic,"
"hazardous," "pollutant," or "contaminant" or a similar designation or
regulation under any federal, state or local law (whether under common law,
statute, regulation or otherwise) or judicial or administrative interpretation
of such, including without limitation petroleum or natural gas. This indemnity
will survive repayment of the Borrower's obligations to the Bank.

10.  DEFAULT

If any of the following events occurs, the Bank may do one or more of the
following: declare the Borrower in default, stop making any additional credit
available to the Borrower, and require the Borrower to repay its entire debt
immediately and without prior notice. If an event of default occurs under the
paragraph entitled "Bankruptcy," below, with respect to the Borrower, then the
entire debt outstanding under this Agreement will automatically be due
immediately.

10.1  Failure to Pay. The Borrower fails to make a payment under this Agreement
when due.

10.2  Lien Priority. The Bank fails to have an enforceable first lien (except
for any prior liens to which the Bank has consented in writing) on or security
interest in any property given as security for this Agreement (or any guaranty).

10.3  False Information. The Borrower (or any guarantor) has given the Bank
false or misleading information or representations.

10.4  Bankruptcy. The Borrower (or any guarantor) files a bankruptcy petition, a
bankruptcy petition is filed against the Borrower (or any guarantor) or the
Borrower (or any guarantor) makes a general assignment for the benefit of
creditors.

10.5  Receivers. A receiver or similar official is appointed for the Borrower's
(or any guarantor's) business, or the business is terminated.

10.6  Lawsuits. Any lawsuit or lawsuits are filed on behalf of one or more trade
creditors against the Borrower (or any guarantor) in an aggregate amount of Two
Hundred Fifty Thousand Dollars ($250,000) or more in excess of any insurance
coverage.

10.7  Judgments. Any judgments or arbitration awards are entered against the
Borrower (or any guarantor), or the Borrower (or any guarantor) enters into any
settlement agreements with respect to any litigation or arbitration, in an
aggregate amount of Two Hundred Fifty Thousand Dollars ($250,000) or more in
excess of any insurance coverage.

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<PAGE>

10.8  Government Action. Any government authority takes action that the Bank
believes materially adversely affects the Borrower's (or any guarantor's)
financial condition or ability to repay.

10.9  Material Adverse Change. A material adverse change occurs, or is
reasonably likely to occur, in the Borrower's (or any guarantor's) business
condition (financial or otherwise), operations, properties or prospects, or
ability to repay the credit.

10.10  Cross-default. Any default occurs under any agreement in connection with
any credit the Borrower (or any guarantor) or any of the Borrower's related
entities or affiliates has obtained from anyone else or which the Borrower (or
any guarantor) or any of the Borrower's related entities or affiliates has
guaranteed.

10.11  Default under Related Documents. Any guaranty, subordination agreement,
security agreement, deed of trust, or other document required by this Agreement
is violated or no longer in effect.

10.12  Other Bank Agreements. The Borrower (or any guarantor) fails to meet the
conditions of, or fails to perform any obligation under any other agreement the
Borrower (or any guarantor) has with the Bank or any affiliate of the Bank.

10.13  Other Breach Under Agreement. The Borrower fails to meet the conditions
of, or fails to perform any obligation under, any term of this Agreement not
specifically referred to in this Article. This includes any failure or
anticipated failure by the Borrower to comply with any financial covenants set
forth in this Agreement, whether such failure is evidenced by financial
statements delivered to the Bank or is otherwise known to the Borrower or the
Bank.

11.   ENFORCING THIS AGREEMENT; MISCELLANEOUS

11.1  GAAP. Except as otherwise stated in this Agreement, all financial
information provided to the Bank and all financial covenants will be made under
generally accepted accounting principles, consistently applied.

11.2  California Law. This Agreement is governed by California law.

11.3  Successors and Assigns. This Agreement is binding on the Borrower's and
the Bank's successors and assignees. The Borrower agrees that it may not assign
this Agreement without the Bank's prior consent. The Bank may sell
participations in or assign this loan, and may exchange financial information
about the Borrower with actual or potential participants or assignees. If a
participation is sold or the loan is assigned, the purchaser will have the right
of set-off against the Borrower.

11 4  Arbitration.

11.5  Severability; Waivers. If any part of this Agreement is not enforceable,
the rest of the Agreement may be enforced. The Bank retains all rights, even if
it makes a loan after default. !f the Bank waives a default, it may enforce a
later default. Any consent or waiver under this Agreement must be in writing.

11.6  Attorneys' Fees. The Borrower shall reimburse the Bank for any reasonable
costs and attorneys' fees incurred by the Bank in connection with the
enforcement or preservation of any rights or remedies under this Agreement and
any other documents executed in connection with this Agreement, and in
connection with any amendment, waiver, "workout" or restructuring under this
Agreement. In the event of a lawsuit or arbitration proceeding, the prevailing
party is entitled to recover costs and reasonable attorneys' fees incurred in
connection with the lawsuit or arbitration proceeding, as determined by the
court or arbitrator. In the event that any case is commenced by or against the
Borrower under the Bankruptcy Code (Title 11, United States Code) or any similar
or successor statute, the Bank is entitled to recover costs and reasonable
attorneys' fees incurred by the Bank related to the preservation, protection, or
enforcement of any rights of the Bank in such a case. As used in this paragraph,
"attorneys' fees" includes the allocated costs of the Bank's in-house counsel.

11.7  One Agreement This Agreement and any related security or other agreements
required by this Agreement, collectively:

(a)  represent the sum of the understandings and agreements between the Bank and
     the Borrower concerning this credit;

(b)  replace any prior oral or written agreements between the Bank and the
     Borrower concerning this credit; and

(c)  are intended by the Bank and the Borrower as the final, complete and
     exclusive statement of the terms agreed to by them.

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<PAGE>

In the event of any conflict between this Agreement and any other agreements
required by this Agreement. this Agreement will prevail.

11.8  Indemnification. The Borrower will indemnify and hold the Bank harmless
from any loss, liability, damages, judgments, and costs of any kind relating to
or arising directly or indirectly out of (a) this Agreement or any document
required hereunder, (b) any credit extended or committed by the Bank to the
Borrower hereunder, and (c) any litigation or proceeding related to or arising
out of this Agreement, any such document, or any such credit. This indemnity
includes but is not limited to attorneys' fees (including the allocated cost of
in-house counsel). This indemnity extends to the Bank, its parent, subsidiaries
and all of their directors, officers, employees, agents, successors, attorneys,
and assigns. This indemnity will survive repayment of the Borrower's obligations
to the Bank. All sums due to the Bank hereunder shall be obligations of the
Borrower, due and payable immediately without demand.

11.9  Prior Agreement Superseded. This Agreement supersedes the Business Loan
Agreement entered into as of July 24, 1998 between the Bank and the Borrower,
and any credit outstanding thereunder shall be deemed to be outstanding under
this Agreement.

This Agreement is executed as of the date stated at the top of the first page.

Bank of America, N.A.,                       Sunrise telecom, Inc.

X  /s/ Lakshmi Wolterding                    X  /s/ Paul Chang
 -------------------------------------        ------------------------------
By: Lakshmi Wolterding, Vice President       By: Paul Chang, President/Chief
                                                 Executive Officer

                                             X  /s/ Peter Eidelman
Address where notices to the Bank are to      ------------------------------
be sent:                                     By: Peter Eidelman, Treasurer

San Jose Commercial Banking Office #01487    Address for Notices:
101 Park Center Plaza, First Floor           22 Great Oaks
San Jose, CA 95113                           Boulevard
                                             San Jose, CA 95119

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<PAGE>

[LOGO] Bank of America
================================================================================
To:                                                          Continuing Guaranty

                                        Borrowers:  Sunrise Telecom, Inc.
     Bank of America, N.A.
                                        Guarantors: Hukk Engineering, Inc.

     (1) For valuable consideration, the undersigned ("Guarantors") jointly and
severally unconditionally guarantee and promise to pay to Bank of America, N.A.
("Bank"), or order, on demand, in lawful money of the United States, any and all
indebtedness of Sunrise Telecom, Inc. ("Borrowers") to Bank. The word
"indebtedness" is used herein in its most comprehensive sense and includes any
and all advances, debts, obligations, and liabilities of Borrowers or any one or
more of them to Bank, heretofore, now, or hereafter made, incurred or created,
whether voluntary or involuntary and however arising, whether direct or acquired
by Bank by assignment or succession, whether due or not due, absolute or
contingent, liquidated or unliquidated, determined or undetermined, and whether
Borrowers may be liable individually or jointly with others, or whether recovery
upon such indebtedness may be or hereafter become barred by any statute of
limitations, or whether such indebtedness may be or hereafter become otherwise
unenforceable.

     (2) The liability of Guarantors under this Guaranty (exclusive of liability
under any other guaranties executed by Guarantors) shall not exceed at any one
time the total of (a) Three Million and 00/100 Dollars ($3,000,000.00), for the
principal amount of the indebtedness and (b) all interest, fees, and other costs
and expenses relating to or arising out of the indebtedness or such part of the
indebtedness as shall not exceed the foregoing limitation. It is provided,
however, that the amount guaranteed under this Guaranty shall not exceed the
Maximum Guaranteed Amount. "Maximum Guaranteed Amount" means the greater of: (x)
the "reasonably equivalent value" received by Guarantors in exchange for or in
connection with Guarantors' execution of this Guaranty; or (y) ninety percent
(90%) of the excess of (i) a "fair valuation" of the amount of the assets of
Guarantors as of the applicable date of determination of the incurrence of
Guarantors' obligations under this Guaranty over (ii) a "fair valuation" of
Guarantors' debts as of such date. For purposes of the definition of "Maximum
Guaranteed Amount", "reasonably equivalent value", "fair valuation" and the
calculation of assets and other property and debts shall be determined in
accordance with applicable federal and California state laws governing the
determination of the insolvency of a debtor and to further the intent of the
parties not to render Guarantors insolvent or to leave Guarantors with an
unreasonably small amount of capital in relation to their business, in all cases
at the applicable date for determination of the incurrence of Guarantors'
obligations under this Guaranty. Bank may permit the indebtedness to exceed
Guarantors' liability, and may apply any amounts received from any source, other
than from Guarantors, to the unguaranteed portion of the indebtedness. This is a
continuing guaranty relating to any indebtedness, including that arising under
successive transactions which shall either continue the indebtedness or from
time to time renew it after it has been satisfied. Any payment by Guarantors
shall not reduce their maximum obligation hereunder, unless written notice to
that effect be actually received by Bank at or prior to the time of such
payment.

     (3) If any Borrower is a partnership and any Guarantor is a general partner
of that partnership, then such Guarantor shall not be liable under this Guaranty
for any indebtedness of such Borrower which is secured by real property;
provided, however, that such Guarantor shall remain liable under partnership law
for all the indebtedness of such Borrower.

     (4) The obligations hereunder are joint and several, and independent of the
obligations of Borrowers, and a separate action or actions may be brought and
prosecuted against Guarantors whether action is brought against Borrowers or
whether Borrowers be joined in any such action or actions; and Guarantors waive
the benefit of any statute of limitations affecting their liability hereunder.

     (5) Guarantors authorize Bank, without notice or demand and without
affecting their liability hereunder, from time to time, either before or after
revocation hereof, to (a) renew, compromise, extend, accelerate, or otherwise
change the time for payment of, or otherwise change the terms of the
indebtedness or any part thereof, including increase or decrease of the rate of
interest thereon; (b) receive and hold security for the payment of this Guaranty
or any of the indebtedness, and exchange, enforce, waive, release, fail to
perfect, sell, or otherwise dispose of any such security; (c) apply such
security and direct the order or manner of sale thereof as Bank in its
discretion may determine; and (d) release or substitute any one or more of the
endorsers or guarantors.

     (6) Guarantors waive any right to require Bank to (a) proceed against
Borrowers; (b) proceed against or exhaust any security held from Borrowers; or
(c) pursue any other remedy in Bank's power whatsoever. Guarantors waive any
defense arising by reason of any disability or other defense of Borrowers, or
the cessation from any cause whatsoever of the liability of Borrowers, or any
claim that Guarantors' obligations exceed or are more burdensome than those of
Borrowers. Until the indebtedness shall have been paid in full, even though the
indebtedness is in excess of Guarantors' liability hereunder, Guarantors waive
any right of subrogation, reimbursement, indemnification, and contribution
(contractual, statutory, or otherwise) including, without limitation, any claim
or right of subrogation under the Bankruptcy Code (Title 11, United States Code)
or any successor statute, arising from the existence or performance of this
Guaranty and Guarantors waive any right to enforce any remedy which Bank now has
or may hereafter have against Borrowers and waive any benefit of, and any right
to participate in, any security now or hereafter held by Bank. Guarantors waive
all presentments, demands for performance, notices of nonperformance, protests,
notices of protest, notices of dishonor, and notices of acceptance of this
Guaranty and of the existence, creation, or incurring of new or additional
Indebtedness.

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<PAGE>

     (7)  (a)  Guarantors understand and acknowledge that if Bank forecloses,
either by judicial foreclosure or by exercise of power of sale, any deed of
trust securing the indebtedness, that foreclosure could impair or destroy any
ability that Guarantors may have to seek reimbursement, contribution, or
indemnification from Borrowers or others based on any right Guarantors may have
of subrogation, reimbursement, contribution, or indemnification for any amounts
paid by Guarantors under this Guaranty. Guarantors further understand and
acknowledge that in the absence of this paragraph, such potential impairment or
destruction of Guarantors' rights, if any, may entitle Guarantors to assert a
defense to this Guaranty based on Section 580d of the California Code of Civil
Procedure as interpreted in Union Bank v. Gradsky, 265 Cal. App. 2d. 40 (1968).
                            ---------------------
By executing this Guaranty, Guarantors freely, irrevocably, and unconditionally:
(i) waive and relinquish that defense and agree that Guarantors will be fully
liable under this Guaranty even though Bank may foreclose, either by judicial
foreclosure or by exercise of power of sale, any deed of trust securing the
indebtedness; (ii) agree that Guarantors will not assert that defense in any
action or proceeding which Bank may commence to enforce this Guaranty; (iii)
acknowledge and agree that the rights and defenses waived by Guarantors in this
Guaranty include any right or defense that Guarantors may have or be entitled to
assert based upon or arising out of any one or more of Sections 580a, 580b,
580d, or 726 of the California Code of Civil Procedure or Section 2848 of the
California Civil Code; and (iv) acknowledge and agree that Bank is relying on
this Waiver in creating the indebtedness, and that this waiver is a material
part of the consideration which Bank is receiving for creating the indebtedness.

          (b) Guarantors waive any rights and defenses that are or may become
available to Guarantors by reason of Sections 2787 to 2855, inclusive, of the
California Civil Code.

          (c) Guarantors waive all rights and defenses that Guarantors may have
because any of the indebtedness is secured by real property. This means, among
other things: (I) Bank may collect from Guarantors without first foreclosing on
any real or personal property collateral pledged by Borrowers; and (ii) if Bank
forecloses on any real property collateral pledged by Borrowers: (1) the amount
of the indebtedness may be reduced only by the price for which that collateral
is sold at the foreclosure sale, even if the collateral is worth more than the
sale price, and (2) Bank may collect from Guarantors even if Bank, by
foreclosing on the real property collateral, has destroyed any right Guarantors
may have to collect from Borrowers. This is an unconditional and irrevocable
waiver of any rights and defenses Guarantors may have because any of the
indebtedness is secured by real property. These rights and defenses include, but
are not limited to, any rights or defenses based upon Section 580a, 580b, 580d,
or 726 of the California Code of Civil Procedure.

          (d) Guarantors waive any right or defense they may have at law or
equity, including California Code of Civil Procedure Section 580a, to a fair
market value hearing or action to determine a deficiency judgment after a
foreclosure.

          (e) No provision or waiver in this Guaranty shall be construed as
limiting the generality of any other waiver contained in this Guaranty.

     (8) Guarantors acknowledge and agree that they shall have the sole
responsibility for obtaining from Borrowers such information concerning
Borrowers' financial conditions or business operations as Guarantors may
require, and that Bank has no duty at any time to disclose to Guarantors any
information relating to the business operations or financial conditions of
Borrowers.

     (9) To secure all of Guarantors' obligations hereunder, Guarantors assign
and grant to Bank a security interest in all moneys, securities, and other
property of Guarantors now or hereafter in the possession of Bank, all deposit
accounts of Guarantors maintained with Bank, and all proceeds thereof. Upon
default or breach of any of Guarantors' obligations to Bank, Bank may apply any
deposit account to reduce the indebtedness and may foreclose any collateral as
provided in the Uniform Commercial Code and in any security agreements between
Bank and Guarantors.

     (10) Any obligations of Borrowers to Guarantors, now or hereafter existing,
including but not limited to any obligations to Guarantors as subrogees of Bank
or resulting from Guarantors' performance under this Guaranty, are hereby
subordinated to the indebtedness. Such obligations of Borrowers to Guarantors if
Bank so requests shall be enforced and performance received by Guarantors as
trustees for Bank, and the proceeds thereof shall be paid over to Bank on
account of the indebtedness, but without reducing or affecting in any manner the
liability of Guarantors under the provisions of this Guaranty.

     (11) This Guaranty may be revoked at any time by Guarantors in respect to
future transactions, unless there is a continuing consideration as to such
transactions which Guarantors do not renounce. Such revocation shall be
effective upon actual receipt by Bank, at the address shown below or at such
other address as may have been provided to Guarantors by Bank, of written notice
of revocation. Revocation shall not affect any of Guarantors' obligations or
Bank's rights with respect to transactions which precede Bank's receipt of such
notice, regardless of whether or not the indebtedness related to such
transactions, before or after revocation, has been renewed, compromised,
extended, accelerated, or otherwise changed as to any of its terms, including
time for payment or increase or decrease of the rate of interest thereon, and
regardless of any other act or omission of Bank authorized hereunder. Revocation
by any one or more of Guarantors shall not affect any obligations of any
nonrevoking Guarantors. If this Guaranty is revoked, returned, or canceled, and
subsequently any payment or transfer of any interest in property by Borrowers to
Bank is rescinded or

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<PAGE>

must be returned by Bank to Borrowers, this Guaranty shall be reinstated with
respect to any such payment or transfer, regardless of any such prior
revocation, return, or cancellation.

     (12) Where any one or more of Borrowers are corporations, partnerships, or
limited liability companies, it is not necessary for Bank to inquire into the
powers of Borrowers or of the officers, directors, partners, members, managers,
or agents acting or purporting to act on their behalf, and any indebtedness made
or created in reliance upon the professed exercise of such powers shall be
guaranteed hereunder.

     (13)  (a)  Guarantors, authorize Bank to verify or check any information
given by Guarantors to Bank, check Guarantors' credit references, verify
employment, and obtain credit reports.

           (b) Guarantors authorize Bank to disclose to any of Bank's affiliates
any information given by Guarantors to Bank in connection with Bank's extension
of credit to Borrowers provided that (i) such information will be used by such
affiliate only in connection with evaluating Borrowers' request or application
for a product or service offered by such affiliate and (ii) Guarantors may at
any time revoke this authorization. Such revocation shall be effective upon
actual receipt by Bank, at the address shown below or at such other address as
may have been provided to Guarantors by Bank, of written notice of such
revocation.

           (c) Guarantors acknowledge and agree that the authorizations provided
in subparagraphs (a) and (b) of-this paragraph apply to any individual general
partners of any Guarantor and to any Guarantor's spouse and any such general
partner's spouse if such Guarantor or such general partner is married and lives
in a community property state.

     (14) Bank may, without notice to Guarantors and without affecting
Guarantors' obligations hereunder, assign the indebtedness and this Guaranty, in
whole or in part. Guarantors agree that Bank may disclose to any assignee or
purchaser, or any prospective assignee or purchaser, of all or part of the
indebtedness any and all information in Bank's possession concerning Guarantors,
this Guaranty, and any security for this Guaranty,

     (15) Guarantors agree to pay all reasonable attorneys' fees, including
allocated costs of Bank's in-house counsel, and all other costs and expenses
which may be incurred by Bank (a) in the enforcement of this Guaranty or (b) in
the preservation, protection, or enforcement of any rights of Bank in any case
commenced by or against Guarantors under the Bankruptcy Code (Title 11, United
States Code) or any similar or successor statute.

     (16) Where there is but a single Borrower, or where a single Guarantor
executes this Guaranty, then all words used herein in the plural shall be deemed
to have been used in the singular where the context and construction so require;
and when there is more than one Borrower named herein, or when this Guaranty is
executed by more than one Guarantor, the words "Borrowers" and "Guarantors"
respectively shall mean all and any one or more of them.

     (17) This Guaranty shall be governed by and construed according to the laws
of the State of California, to the jurisdiction of which the parties hereto
submit.

     (18)  (a)  Any controversy or claim between or among the parties, including
but not limited to those arising out of or relating to this Guaranty or any
agreements or instruments relating hereto or delivered in connection herewith
and any claim based on or arising from an alleged tort, shall at the request of
any party be determined by arbitration. The arbitration shall be conducted in
accordance with the United States Arbitration Act (Title 9, U.S. Code),
notwithstanding any choice of law provision in this Guaranty, and under the
Commercial Rules of the American Arbitration Association ("AAA"). The
arbitrators shall give effect to statutes of limitation in determining any
claim, except as expressly waived hereunder by Guarantors. Any controversy
concerning whether an issue is arbitrable shall be determined by the
arbitrators. Judgment upon the arbitration award may be entered in any court
having jurisdiction. The institution and maintenance of an action for judicial
relief or pursuit of a provisional or ancillary remedy shall not constitute a
waiver of the right of any party, including the plaintiff, to submit the
controversy or claim to arbitration if any other party contests such action for
judicial relief.

          (b) Notwithstanding the provisions of subparagraph (a), no controversy
or claim shall be submitted to arbitration without the consent of all parties
if, at the time of the proposed submission, such controversy or claim arises
from or relates to an obligation to Bank which is secured by real property
collateral located in California. If all parties do not consent to submission of
such a controversy or claim to arbitration, the controversy or claim shall be
determined as provided in subparagraph (c).

          (c) A controversy or claim which is not submitted to arbitration as
provided and limited in subparagraphs (a) and (b) shall, at the request of any
party, be determined by a reference in accordance with California Code of Civil
Procedure Section 638 et seq. If such an election is made, the parties shall
                      ------
designate to the court a referee or referees selected under the auspices of the
AAA in the same manner as arbitrators are selected in AAA-sponsored proceedings.
The presiding referee of the panel, or the referee if there is a single referee,
shall be an active attorney or retired judge. Judgment upon the award rendered
by such referee or referees shall be entered in the court in which such
proceeding was commenced in accordance with California Code of Civil Procedure
Sections 644 and 645.

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<PAGE>

          (d) No provision of this paragraph shall limit the right of any party
to this Guaranty to exercise self-help remedies such as setoff, to foreclose
against or sell any real or personal property collateral or security, or to
obtain provisional or ancillary remedies from a court of competent jurisdiction
before, after, or during the pendency of any arbitration or other proceeding.
The exercise of a remedy does not waive the right of either party to resort to
arbitration or reference. At Bank's option, foreclosure under a deed of trust or
mortgage may be accomplished either by exercise of power of sale under the deed
of trust or mortgage or by judicial foreclosure.

Date:       11/9      , 1999
      ----------------  ----

Witnessed:                            Hukk Engineering Inc.

X  /s/ ?????                          X  /s/ Peter Eidelman
 ------------------------------        --------------------------------------
Witness                               By: Peter Eidelman, Secretary Treasurer

                                      X
-------------------------------        --------------------------------------
Address                               By:

X
 ------------------------------       3250-D Peachtree
Witness                               Corners Circle
                                      Norcross, Ga 30092

-------------------------------
Address

Address for Notices:

Bank of America, N.A.
San Jose Commercial Banking Office #01487
101 Park Center Plaza, First Floor
San Jose, CA 95113

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<PAGE>

[LOGO] Bank of America
================================================================================
                                  Security Agreement (Receivables and Inventory)

1.   THE SECURITY.
The undersigned Hukk Engineering, Inc. ("Borrower") hereby assigns and grants to
Bank of America, N.A. ("Bank") a security interest in the following described
property ("Collateral"):

     A.   All of the following, whether now owned or hereafter acquired by
          Borrower: accounts, contract rights, chattel paper, instruments,
          deposit accounts, and general intangibles.
     B.   All inventory now owned or hereafter acquired by Borrower.
     C.   All negotiable and nonnegotiable documents of title now owned or
          hereafter acquired by Borrower.
     D.   All rights under contracts of insurance now owned or hereafter
          acquired by Borrower covering any of the above-described property.
     E.   All proceeds, product, rents and profits now owned or hereafter
          acquired by Borrower of any of the above-described property.
     F.   All books and records now owned or hereafter acquired by Borrower
          pertaining to any of the above-described property, including but not
          limited to any computer-readable memory and any computer hardware or
          software necessary to process such memory ("Books and Records").

2.   THE INDEBTEDNESS.
The collateral secures and will secure all Indebtedness of Borrower to Bank. For
the purposes of this Agreement, "Indebtedness" means all loans and advances made
by Bank to Borrower and all other obligations and liabilities of Borrower to
Bank, whether now existing or hereafter incurred or created, whether voluntary
or involuntary, whether due or not due, whether absolute or contingent, or
whether incurred directly or acquired by Bank by assignment or otherwise. Unless
Borrower shall have otherwise agreed in writing, Indebtedness, for the purposes
of this Agreement, shall not include "consumer credit" subject to the disclosure
requirements of the Federal Truth in Lending Act or any regulations promulgated
thereunder.

3.   BORROWER'S COVENANTS.
Borrower covenants and warrants that unless compliance is waived by Bank in
writing:

     A. Borrower will properly preserve the Collateral; defend the Collateral
        against any adverse claims and demands; and keep accurate Books and
        Records.
     B. Borrower has notified Bank in writing of, and will notify Bank in
        writing prior to any change in the locations of (i) Borrower's place of
        business or Borrower's chief executive office if Borrower has more than
        one place of business and (ii) any Collateral, including the Books and
        Records.
     C. Borrower will notify Bank in writing prior to any change in Borrower's
        name, identity or business structure.
     D. Borrower will maintain and keep in force insurance covering Collateral
        designated by Bank against fire and extended coverages. Such insurance
        shall require losses to be paid on a replacement cost basis, be issued
        by insurance companies acceptable to Bank and include a loss payable
        endorsement in favor of Bank in a form acceptable to Bank.
     E. Borrower has not granted and will not grant any security interest in any
        of the Collateral except to Bank, and will keep the Collateral free of
        all liens, claims, security interests and encumbrances of any kind or
        nature, except the security interest of Bank.
     F. Borrower will not sell, lease, agree to sell or lease, or otherwise
        dispose of, or remove from Borrower's place of business (i) any
        inventory except in the ordinary course of business as heretofore
        conducted by Borrower, or (ii) any other Collateral except with the
        prior written consent of Bank.
     G. Borrower will promptly notify Bank in writing of any event which affects
        the value of any Collateral, the ability of Borrower or Bank to dispose
        of any Collateral, or the rights and remedies of Bank in relation
        thereto, including but not limited to, the levy of any legal process
        against any Collateral and the adoption of any marketing order,
        arrangement or procedure affecting the Collateral, whether governmental
        or otherwise.
     H. If any Collateral is or becomes the subject of any negotiable document
        of title including any warehouse receipt or bill of lading, Borrower
        shall immediately deliver such document to Bank.
     I. Until Bank exercises its rights to make collection, Borrower will
        diligently collect all Collateral.

4.   ADDITIONAL OPTIONAL REQUIREMENTS.
Borrower agrees that Bank may at its option at any time, whether or not Borrower
is in default:

     A. Require Borrower to segregate all collections and proceeds of the
        Collateral so that they are capable of identification and deliver daily
        such collections and proceeds to Bank in kind.
     B. Require Borrower to deliver to Bank (i) copies of or extracts from the
        Books and Records, and (ii) information on any contracts or other
        matters affecting the Collateral.
     C. Examine the Collateral, including the Books and Records, and make copies
        of or extracts from the Books and Records, and for such purposes enter
        at any reasonable time upon the property where any Collateral or any
        Books and Records are located.

--------------------------------------------------------------------------------
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<PAGE>

     D. Require Borrower to deliver to Bank any instruments or chattel paper.
     E. Require Borrower to obtain Bank's prior written consent to any sale,
        lease, agreement to sell or lease, or other disposition of any
        inventory.
     F. Notify any account debtors, any buyers of the Collateral, or any other
        persons of Bank's interest in the Collateral.
     G. Require Borrower to direct all account debtors to forward all payments
        and proceeds of the Collateral to a post office box under Bank's
        exclusive control.
     H. Demand and collect any payments and proceeds of the Collateral. In
        connection therewith Borrower irrevocably authorizes Bank to endorse or
        sign Borrower's name on all checks, drafts, collections, receipts and
        other documents, and to take possession of and open the mail addressed
        to Borrower and remove therefrom any payments and proceeds of the
        Collateral.

5.   DEFAULTS.
Any one or more of the following shall be a default hereunder:

     A. Borrower fails to pay any indebtedness when due.
     B. Borrower breaches any term, provision, warranty or representation under
        this Agreement or under any other obligation of Borrower to Bank.
     C. Any custodian, receiver or trustee is appointed to take possession,
        custody or control of all or a substantial portion of the property of
        Borrower or of any guarantor of any indebtedness.
     D. Borrower or any guarantor of any indebtedness becomes insolvent, or is
        generally not paying or admits in writing its inability to pay its debts
        as they become due, fails in business, makes a general assignment for
        the benefit of creditors, dies or commences any case, proceeding or
        other action under any bankruptcy or other law for the relief of, or
        relating to, debtors.
     E. Any case, proceeding or other action is commenced against Borrower or
        any guarantor of any indebtedness under any bankruptcy or other law for
        the relief of, or relating to, debtors.
     F. Any involuntary lien of any kind or character attaches to any
        Collateral.
     G. Any financial statements, certificates, schedules or other information
        now or hereafter furnished by Borrower to Bank proves false or incorrect
        in any material respect.

6.   BANK'S REMEDIES AFTER DEFAULT.
In the event of any default Bank may do any one or more of the following:

     A. Declare any indebtedness immediately due and payable, without notice or
        demand.
     B. Enforce the security interest given hereunder pursuant to the Uniform
        Commercial Cede and any other applicable law.
     C. Enforce the security interest of Bank in any deposit account of Borrower
        maintained with Bank by applying such account to the Indebtedness.
     D. Require Borrower to assemble the Collateral, including the Books and
        Records, and make them available to Bank at a place designated by Bank.
     E. Enter upon the property where any Collateral, including any Books and
        Records are located and take possession of such Collateral and such
        Books and Records, and use such property (including any buildings and
        facilities) and any of Borrower's equipment, if Bank deems such use
        necessary or advisable in order to take possession of, hold, preserve,
        process, assemble, prepare for sale or lease, market for sale or lease,
        sell or [ease, or otherwise dispose of, any Collateral.
     F. Grant extensions and compromise or settle claims with respect to the
        Collateral for less than face value, all without prior notice to
        Borrower.
     G. Use or transfer any of Borrower's rights and interest in any
        Intellectual Property now owned or hereafter acquired by Borrower, if
        Bank deems such use or transfer necessary or advisable in order to take
        possession of, hold, preserve, process, assemble, prepare for sale or
        lease, market for sale or lease, sell or lease, or otherwise dispose of,
        any Collateral. Borrower agrees that any such use or transfer shall be
        without any additional consideration to Borrower. As used in this
        paragraph, "Intellectual Property" includes, but is not limited to, all
        trade secrets, computer software, service marks, trademarks, trade
        names, trade styles, copyrights, patents, applications for any of the
        foregoing, customer lists, working drawings, instructional manuals, and
        rights in processes for technical manufacturing, packaging and labelling
        in which Borrower has any right or interest, whether by ownership,
        license, contract or otherwise.
     H. Have a receiver appointed by any court of competent jurisdiction to take
        possession of the Collateral.
     I. Take such measures as Bank may deem necessary or advisable to take
        possession of, hold, preserve, process, assemble, insure, prepare for
        sale or lease, market for sale or lease, sell or lease, or otherwise
        dispose of, any Collateral, and Borrower hereby irrevocably constitutes
        and appoints Bank as Borrower's attorney-in-fact to perform all acts and
        execute all documents in connection therewith.

--------------------------------------------------------------------------------
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<PAGE>

7.   MISCELLANEOUS.
     A.   Any waiver, expressed or implied, of any provision hereunder and any
          delay or failure by Bank to enforce any provision shall not preclude
          Bank from enforcing any such provision thereafter,
     B.   Borrower shall, at the request of Bank, execute such other agreements,
          documents, instruments, or financing statements in connection with
          this Agreement as Bank may reasonably deem necessary.
     C.   All notes, security agreements, subordination agreements and other
          documents executed by Borrower or furnished to Bank in connection with
          this Agreement must be in form and substance satisfactory to Bank.
     D.   This Agreement shall be governed by and construed according to the
          laws of the State of California, to the jurisdiction of which the
          parties hereto submit.
     E.   All rights and remedies herein provided are cumulative and not
          exclusive of any rights or remedies otherwise provided by law. Any
          single or partial exercise of any right or remedy shall not preclude
          the further exercise thereof or the exercise of any other right or
          remedy.
     F.   All terms not defined herein are used as set forth in the Uniform
          Commercial Code.
     G.   In the event of any action by Bank to enforce this Agreement or to
          protect the security interest of Bank in the Collateral, or to take
          possession of, hold, preserve, process, assemble, insure, prepare for
          sale or lease, market for sale or lease, sell or lease, or otherwise
          dispose of, any Collateral, Borrower agrees to pay immediately the
          costs and expenses thereof, together with reasonable attorney's fees
          and allocated costs for in-house legal services.
     H.   Any Borrower who is married agrees that such Borrower's separate
          property shall be liable for payment of the indebtedness if such
          Borrower is personally liable for the indebtedness.

Date:       11/9       , 1999
      -----------------  ----

Bank of America, N.A.                     Borrower:
                                          Hukk Engineering, Inc.

X    /s/ Lakshmi Wolterding               X  /s/ Peter Eidelman
 -------------------------------------     ------------------------------------
By: Lakshmi Wolterding, Vice President    By: Peter Eidelman, Secretary/
                                               Treasurer

                                          X
                                           ------------------------------------
                                          By:

--------------------------------------------------------------------------------
N-255 (03/91)                       -3-                       100699-7-RTIRITIL<PAGE>

                                                                    EXHIBIT 10.4

                           STOCK PURCHASE AGREEMENT

                                  By and Among

                             SUNRISE TELECOM, INC.,
                           a California corporation,

                            HUKK ENGINEERING, INC.,
                             a Georgia corporation

                               CLIFFORD D. BROWN
                               ROBERT L. RICHARDS
                                JAMES A. BARKER

                                 July 30, 1999
<PAGE>

                            STOCK PURCHASE AGREEMENT

     This Stock Purchase Agreement (this "Agreement") is made this 30th day of
July, 1999 (the "Effective Date") by and among Sunrise Telecom, Inc., a
California corporation ("Parent"), Hukk Engineering, Inc., a Georgia corporation
("Hukk"), and Clifford D. Brown, Robert L. Richards, and James A. Barker
(individually referred to herein as "Shareholder" and collectively as
"Shareholders").

                                    RECITALS

     A.  As of the date hereof, Clifford D. Brown owns 40,000 shares of common
stock of Hukk, Robert L. Richards owns 26,667 shares of common stock of Hukk,
and James A. Barker owns 2,062 shares of common stock of Hukk, which 68,729
shares of common stock collectively constitute all of the issued and outstanding
capital stock of Hukk (the "Shares").

     B.  The Shareholders desire to sell to Parent and Parent desires to
purchase from the Shareholders the Shares under the terms and conditions set
forth in this Agreement (the "Stock Purchase").

     C.  Upon the consummation of the transactions contemplated herein, the
parties intend that Hukk shall be a wholly-owned subsidiary of Parent.

     D.  The Boards of Directors of Parent and Hukk each have determined that
the transactions contemplated in this Agreement are in the best interests of
their respective companies and shareholders and accordingly, have agreed to
effect the Stock Purchase provided for herein upon the terms and subject to the
conditions set forth herein.

     E.  Parent, Hukk, and the Shareholders desire to make certain
representations, warranties and agreements in connection with the Stock
Purchase.

     THEREFORE, in consideration of the foregoing and of the mutual promises,
covenants, representations, warranties, and agreements herein contained, and
intending to be legally bound, the parties hereby agree as follows:

                                   AGREEMENT

                                   ARTICLE 1

                           PURCHASE AND SALE OF STOCK

     1.1  Purchase and Sale of Shares. Upon execution of the Agreement and
          ---------------------------
subject to the terms and conditions contained herein, the Shareholders shall
sell to Parent, and Parent shall purchase from the Shareholders, the Shares for
the consideration as specified in Sections 1.3 and 1.4.

                                      -1-
<PAGE>

     1.2  Closing. The closing of the purchase and sale of the Shares (the
          -------
"Closing") shall take place in the offices of Hopkins & Carley, A Law
Corporation, 2 West Santa Clara Struet, Sixth Floor, San Jose, California 95113
on July 30, 1999 (the "Closing Date").

     1.3  Purchase Price. The Purchase Price for the Shares shall be One Million
          --------------
Seven Hundred Thousand Dollars ($1,700,000) consisting of cash in the amount of
Eight Hundred Thousand Dollars ($800,000); Promissory Notes for an aggregate
principal amount of Four Hundred Fifty Thousand Dollars ($450,000); and One
Hundred Thousand (100,000) shares of common stock of Parent at a per share value
of $4.50.

     1.4  Payment of Purchase Price. The Purchase Price shall be paid to the
          -------------------------
Shareholders as follows:

          (a) At Closing, wire transfer in the amount of Eight Hundred Thousand
Dollars ($800,000) as specified on Schedule 1.4(a).
                                   ---------------

          (b) At Closing, Promissory Notes in the aggregate amount of Four
Hundred Fifty Thousand Dollars ($450,000) to each of the Shareholders payable in
sixteen quarterly payments commencing October 30, 1999 with interest calculated
at the Federal prime rate plus 2.5% in substantially the form attached hereto as
Exhibits A-l, A-2, and A-3.
------------  ---      ---

          (c) At Closing, One Hundred Thousand (100,000) shares of common stock
of Parent (the "Parent Shares") shall be issued in the name of each Shareholder
subject to certain restrictions and legends as specified on Schedule 1.4(c).
                                                            ---------------

                                   ARTICLE 2

                         DIRECTORS AND OFFICERS OF HUKK

     2.1  Directors.  The directors of Hukk at Closing shall be as specified on
          ---------
Schedule 2.1 until their successors are duly appointed or elected in accordance
------------
with applicable law.

     2.2  Officers.  The officers of Hukk at Closing shall be as specified on
          --------
Schedule 2.2 until their successors are duly appointed or elected in accordance
------------
with applicable law.

                                   ARTICLE 3

            REPRESENTATIONS AND WARRANTIES OF HUKK AND SHAREHOLDERS

     Except as set forth as written exceptions by Hukk and the Shareholders
before the Closing, Hukk and each of the Shareholders represent and warrant to
Parent as of the Closing Date as follows:

     3.1  Organization, Power, Standing and Qualification. Hukk is a corporation
          -----------------------------------------------
duly organized, validly existing, and in good standing under the laws of the
State of Georgia and has full corporate power and authority to carry on its
business as it is now being conducted, and to

                                      -2-
<PAGE>

own, lease, and operate the properties and assets now owned, leased and operated
by it. Hukk is duly qualified to do business and is in good standing in Georgia
and as of the Closing Date in each and every other jurisdiction where the
failure to qualify or to be in good standing would have a material adverse
effect upon its financial condition, the conduct of its business, or the
ownership of its property and assets, and such qualification and good standing
is required by the laws of such jurisdiction.

     3.2  Power and Authority. Hukk and each Shareholder have the full corporate
          -------------------
power and authority or legal capacity and right, as the case may be, to execute,
deliver, and perform this Agreement. This Agreement is a valid and binding
obligation of Hukk and the Shareholders, enforceable in accordance with its
terms.

     3.3  Validity of Contemplated Transactions; Consents. The execution,
          -----------------------------------------------
delivery, and performance of this Agreement and the consummation of the
transactions contemplated hereby do not and will not:

          (a) contravene any provision of the Certificate of Incorporation or
Bylaws of Hukk;

          (b) violate, be in conflict with, or constitute a default under (or
any event which, with notice or lapse of time or both would constitute a default
under), cause the acceleration of any payments or performance pursuant to,
result in the termination of or otherwise impair the good standing, validity, or
effectiveness of any agreement, contract, indenture, lease, or mortgage, or
subject any property or asset of Hukk to any liens under any indenture,
mortgage, contract, commitment, or agreement to which Hukk is a party, or any of
its assets may be bound or affected; or

          (c) violate any provision of law, role, ordinance, regulation, order,
judgment, permit, or license to which Shareholder or Hukk, or any of its assets,
is subject. Except as set forth on Schedule 3.3 hereto, no consent, approval or
                                   ------------
authorization of, notice to, registration or filing with any person, entity or
governmental authority is required on the part of the Shareholders or Hukk in
connection with the execution, delivery and performance by the Shareholders or
Hukk of this Agreement or the consummation of any of the transactions
contemplated hereby.

     3.4  Capitalization of Hukk. As of the date hereof, Hukk's total authorized
          ----------------------
capital stock consists of One Hundred Thousand (100,000) shares of common stock
and One Hundred Thousand (100,000) shares of preferred stock, of which Sixty-
eight Thousand Seventy Nine (68,729) shares of common stock are outstanding and
no (0) shares of preferred stock are outstanding. All of such outstanding shares
have been duly authorized and validly issued, and are fully paid, and non-
assessable. Except as set forth on Schedule 3.4 hereto, there are no outstanding
                                   ------------
options, warrants, conversion privileges, subscription, calls, commitments, or
rights of any character relating to the Shares or any authorized but unissued
capital stock of Hukk.

     3.5  Ownership of Shares. Except for the rights acquired by Parent pursuant
          -------------------
to this Agreement, and except as set forth on Schedule 3.5, the Shareholders
                                              ------------
hold all of the legal and

                                      -3-
<PAGE>

beneficial ownership of and title to the Shares, free and clear of any liens.
Each Shareholder owns the number of Shares listed to the right of his name on
Schedule 3.5. Delivery to the Parent of certificates representing the Shares
------------
pursuant to this Agreement will transfer to Parent valid title thereto, free and
clear of all liens. No Shareholder has a legal obligation, absolute or
contingent, to any other person or firm to sell any of the Shares or to effect
any merger, consolidation, or other reorganization of Hukk or to enter into any
agreement with respect to the Shares.

     3.6  Title to Properties. Except as set forth in Schedule 3.6 hereto, Hukk
          -------------------                         ------------
has good, valid and marketable title to, or valid leasehold interests in, all of
its properties and assets, real, personal, and mixed, tangible and intangible
including all of the properties and assets reflected on the latest balance sheet
of Hukk that is included in the Financial Statements (as defined in Section 3.8
hereof) and those properties and assets acquired since the date of such balance
sheet, except in each case for properties and assets sold or otherwise disposed
of in the ordinary course of business, free and clear of all liens, except (a)
liens disclosed in such balance sheet or the notes thereto; (b) liens for
current taxes not yet due (c) liens in connection with workmen's compensation,
unemployment insurance, or other social security obligations; (d) deposits or
pledges to secure bids, tenders, contracts (other than contracts for the payment
of money), leases, statutory obligations, surety and appeal bonds, and other
obligations of like nature arising in the ordinary course of business; (e)
mechanic's, workmen's, materialmen's, or other like liens arising in the
ordinary course of business with respect to obligations that are not due or that
are being contested in good faith; and (f) such imperfections of title, liens,
easements, and encumbrances, if any, as are not substantial and do not
materially detract from the value, or materially interfere with the present use,
of any of the properties subject thereto or affected thereby, or otherwise
materially impair the business, operations, or prospects of Hukk.

     3.7  Intangibles; Names. Schedule 3.7 contains a correct and complete list
          ------------------  ------------
of all of the trademarks, trade names, service marks, registered copyrights,
patents and patent applications owned or licensed by Hukk (all of such items are
referred to hereinafter collectively as the "Intangibles"). To the knowledge of
the Shareholders; (a) none of the Intangibles or their past or current uses has
infringed or infringes, upon any patent, copyright, trade secret or other
proprietary right of any other person, and (b) no person is infringing upon any
of the Intangibles. In addition, none of the Intangibles is owned by or
registered in the name of any of the Shareholders or any current or former
shareholder, director, officer, employee, contractor or agent of Hukk, nor does
any such person have any interest therein. To the best knowledge of the
Shareholders, no person has a right to receive a royalty with respect to any of
the Intangibles.

     3.8  Financial Information.
          ---------------------

          (a) Shareholder has delivered to Parent financial statements for the
fiscal year ending December 31, 1998, the six-month period ended June 30, 1999,
and the period from June 30, 1999 through Closing Date (the "Financial
Statements"). The Financial Statements are complete and correct in all material
respects, have been prepared in accordance with generally accepted accounting
principles, consistently applied, and present

                                      -4-
<PAGE>

fairly the financial condition of Hukk and the results of its operations for the
period ended on such date.

          (b) Except as set forth in Schedule 3.8, Hukk has no debts,
                                     ------------
liabilities or obligations of any nature, known or unknown, fixed or contingent,
other than:

               (i)   those set forth in the Financial Statements and the notes
thereto;

               (ii)  those incurred since the Balance Sheet Date and not in
breach of any of the representations of Section 3.14; and

               (iii) those which are not material, individually or in the
aggregate, to Hukk's business, assets or financial condition. To the knowledge
of the Shareholders, there are no circumstances, bases (either with notice,
lapse of time or both), conditions, events or arrangements which may hereafter
give rise to any liabilities of Hukk except in the ordinary course of business
consistent with past practices.

     3.9  Tax Matters. Except as set forth on Schedule 3.9 attached hereto, Hukk
          -----------                         ------------
has duly filed all federal, state, foreign and local tax returns and reports
required to be filed by it, and all of Hukk's taxes shown to be due on such
returns and reports or otherwise due and payable, including income, gross
receipt, and other taxes and any penalties with respect thereto, have been paid,
withheld, or reserved for or, to the extent that they relate to periods on or
prior to the date of the Financial Statements, are reflected as a liability on
the Financial Statements. Except as set forth on Schedule 3.9. attached hereto,
                                                 ------------
no federal, state, local or foreign tax audit is pending or, to the knowledge of
the Shareholders, has been threatened against Hukk. No notice of deficiency or
adjustment has been received by Hukk or any Shareholder by or from any
governmental taxing authority. There are no agreements or waivers in effect
which provide for an extension of time for the assessment of any tax against
Hukk. Correct and complete copies of the following have been delivered by Hukk
or the Shareholders to Parent: Hukk's federal, state, and local tax returns for
all taxable periods for which the applicable statute of limitations remains open
and all correspondence with the Internal Revenue Service relating to any of the
foregoing.

     3.10  Litigation; Compliance with Law. Except as set forth in Schedule
           -------------------------------                         --------
3.10(a) hereto, there is no suit, action, claim, arbitration, administrative or
-------
legal or other proceeding, or governmental investigation pending or, to
Shareholders' knowledge, threatened against Hukk or the Shareholders which
relate to Hukk or to the transactions contemplated by this Agreement. A correct
and complete list and brief description, including outcome, of all claims
threatened or filed against Hukk within the last five (5) years is set forth on
Schedule 3.10(a). To the best of the Shareholders' knowledge, Hukk is in
----------------
compliance with all applicable laws, ordinances, requirements, regulations,
judgments, decrees and orders applicable to Hukk, the violation of which,
individually or in the aggregate, might have a material adverse effect on the
financial condition, business, results of operations, properties, or assets of
Hukk, or Parent's ownership of the Shares. Hukk holds all permits, licenses,
consents, authorizations, approvals, privileges, waivers, exemptions and orders
("Permits") necessary or appropriate to permit it to own its properties and to
conduct its business in accordance with applicable laws, regulations

                                      -5-
<PAGE>

and ordinances. Schedule 3.10(b) contains a correct and complete list of all
                ----------------
such Permits. Except as noted on Schedule 3.10(c), to the best of the
                                 ----------------
Shareholders' knowledge, there are no facts in existence that could form the
basis of any claim against Hukk for product liability on account of any express
or implied warranty.

     3.11  ERISA Matters.
           -------------

          (a) Schedule 3.11(a) sets forth a true and complete list of each
              ----------------
employee benefit or compensation plan, arrangement or agreement that is
maintained, or has been maintained by Hukk (including terminated or transferred
plans) by Hukk or to which Hukk makes contributions and in each case, which
covers employees of Hukk (the "Plans"). Hukk has provided correct and complete
copies of all plan documents, summary plan descriptions, annual reports,
determination letters, trust agreements and other material agreements relating
to the Plans.

          (b) Except as set forth in Schedule 3.11(b),
                                     -----------------

               (i)   each of the Plans that is an "employee benefit plan" within
the meaning of (S) 3(3) of the Employee Retirement Income Security Act of 1974,
as amended ("ERISA") materially complies and has always materially complied with
ERISA, to the extent that any noncompliance would not have a materially adverse
effect ;

               (ii)  each of the Plans intended to be "qualified" within the
meaning of I.R.C. (S) 401 (a), complies and has always materially complied with
the Code, except such non-compliance as shall not disqualify such Plan;

               (iii) each of the Plans has always been operated in accordance
with its terms in all material respects;

               (iv)  all contributions or other amounts payable by Hukk as of
the Closing Date with respect to each Plan in respect of current or prior plan
years have been paid or accrued in accordance with generally accepted accounting
practices and I.R.C (S) 412;

               (v)   to the knowledge of the Shareholders, there are no pending,
threatened or anticipated claims (other than routine claims for benefits) by, on
behalf of or against any of the Plans or any trusts related thereto.

     3.12  Insurance. Hukk has maintained and maintains insurance covering
           ---------
Hukk's business, assets, the premises and its employees sufficient to comply
with all applicable laws and contracts. Schedule 3.12 is an accurate list of
                                        -------------
each insurance policy owned or maintained by Hukk, correct and complete copies
of which have been delivered to Parent, and all such policies are in full force
and effect and with respect to product liability insurance policies for prior
periods, as enumerated on Schedule 3.12, such insurance was in full force and
                          -------------
effect for the applicable periods. Hukk has not received any notice of
cancellation with respect to any such policy. No claims are pending under any
such policy, and there are no actions or proceedings based on or arising out of
such policies, except as explained on Schedule 3.12 and
                                      -------------

                                      -6-
<PAGE>

except for claims covered under any employee health insurance plan. To the
knowledge of the Shareholders, there is no basis for the insurer thereunder to
terminate any such policy other than upon the expiration of the policy at the
end of its term in accordance with the provisions of such policies.

     3.13  Contracts. Schedule 3.13 lists all contracts, licenses, guaranties,
           ---------  -------------
notes, leases, agreements and instruments to which Hukk is a party, or is bound
("Contracts"). Except as noted on Schedule 3.13, Hukk has in all material
                                  -------------
respects performed all the material obligations required to be performed by Hukk
as of the date hereof pursuant to any Contract, and Hukk is not in default under
any Contract, nor, to the Shareholders' knowledge, has an event occurred which,
with the passage of time or giving of notice or both, will result in the
occurrence of a default under any Contract. Schedule 3.13 contains a correct and
                                            -------------
complete list of all powers of attorney, forms of warranties, and forms of
purchase orders, sales contracts and service contracts, whether or not material
to the business of Hukk or entered into in the ordinary course of business. A
correct and complete copy of each of such document has been provided to Parent.

     3.14  Other Transactions. Except as disclosed on Schedule 3.14 hereto, Hukk
           ------------------                         -------------
has not, since the Balance Sheet Date;

          (a) operated its business except in the ordinary course;

          (b) incurred any debts, liabilities or obligations except in the
ordinary course of business;

          (c) discharged or satisfied any material liens, or paid any material
debts, liabilities, or obligations, except in the ordinary course of business;

          (d) mortgaged, pledged, or subjected to any Lien any of its assets,
tangible or intangible, having a book value of more than Twenty Thousand Dollars
($20,000) individually or in the aggregate;

          (e) sold or transferred any of its tangible assets (other than
inventory in the ordinary course of business) having a book value of more than
Twenty Thousand Dollars ($20,000), or canceled any material debts or claims;

          (f) declared, set aside, or paid any dividend or made any other
distribution (whether in cash, stock or property) with respect to any of Hukk's
capital stock;

          (g) suffered any material extraordinary losses or waived any rights of
substantial value;

          (h) suffered any materially adverse change in its condition (financial
or otherwise) or business, assets, liabilities, properties or prospects;

          (i) increased compensation or benefits payable to any directors,
officers, employees or consultants;

                                      -7-
<PAGE>

          (j) suffered any material losses by theft, fire or other casualty;

          (k) canceled or suffered the termination of any Contract except in the
ordinary course of business; or

          (l) failed to operate the business of Hukk in the ordinary course.

     3.15  Bank Accounts. Schedule 3.15 hereto lists the name and address of
           -------------  -------------
each bank and other financial institution in which Hukk maintains an account
(whether checking, savings or otherwise), lock box, or safe deposit box and the
account numbers and names of persons having signing authority or other access
thereto.

     3.16  Compensation Arrangements. Hukk has delivered to Parent, on Schedule
           -------------------------                                   --------
3.16 hereto, a correct list showing the names of all officers, employees, and
----
agents performing services for Hukk in connection with its business and the rate
of hourly, monthly, or annual compensation (as the case may be), and any bonus,
severance or similar arrangement with any of them. No union or collective
bargaining agreement or employment agreement is currently in effect or being
negotiated by Hukk.

     3.17  Corporate Records. The copies of the Certificate of Incorporation of
           -----------------
Hukk, as amended to the date of this Agreement, certified by the Secretary of
Hukk, and the Bylaws of Hukk, as amended to the date of this Agreement,
certified by the Secretary of Hukk, which are being delivered herewith, are
true, correct, and complete copies of the Certificate of Incorporation and
Bylaws as currently in effect. Schedule 3.17 sets forth a true and correct list
                               -------------
of the names and titles of all of Hukk's current directors and officers, any
fictitious names of Hukk and the jurisdictions, if any, in which Hukk is
qualified as a foreign corporation. Correct and complete copies of Hukk's minute
books and stock records have been delivered to the Parent.

     3.18  Environmental Matters.
           ---------------------

          (a) "Environmental Law" shall mean any federal, state or local
statute, ordinance, role or regulation, any judicial or administrative order,
judgment, request or directive, any common law doctrine or theory and any
provision or condition of any Permit, license or other operating authorization,
primarily relating to (A) protecting the environment, including without
limitation protection of the environment, persons or the public welfare from
actual or potential exposure (or the effects of exposure) to any actual or
potential release, discharge or emission (whether past or present) of, or
regarding the manufacture, processing, importation, use, transportation,
generation, treatment, storage, disposal, transportation or handling of, any
chemical, raw material, pollutant, contaminant or toxic, hazardous or
radioactive substance; (B) occupational or public health or safety; or (C) land
use.

          (b) Except as indicated in Schedule 3.18, Hukk is, or will be prior to
                                     -------------
the Closing Date, in compliance with all Environmental Laws and in possession of
and compliance with all necessary Permits, licenses and other authorizations. To
the knowledge

                                      -8-
<PAGE>

of the Shareholders, the present condition of Hukk and its property, Hukk's
present or past activities or manner of operating Hukk and its property
(including the real property which is currently leased by Hukk (the "Leased
Property")) including, but not limited to, disposing or arranging for the
disposal of waste materials, does not give rise to any liability to any person,
contingent or otherwise, under any Environmental Law. Hukk has fully disclosed
to Parent all documents and information in its possession and control regarding
activities and conditions relating to Hukk and the Leased Property which could
in the future result or may in the past have resulted in noncompliance with, or
liability under, any Environmental Law.

          (c) To the actual knowledge of the Shareholders, there are no proposed
Environmental Laws or amendments to Environmental Laws which would require any
material change in any of Hukk's facilities, equipment, operation or procedures,
or materially affect Hukk's business or its costs of conducting its business as
now conducted, and to the Shareholder's knowledge, the operation by the owner of
the building within which Hukk's Leased Property is located is and has been in
compliance with all Environmental Laws.

     3.19  Suppliers and Customers. Except as set forth on Schedule 3.19, no
           -----------------------                         -------------
single customer accounted for more than five percent (5%) of Hukk's net sales in
Hukk's most recent fiscal year. To the best of Shareholder's knowledge, except
as disclosed on Schedule 3.19, no officer or director of Hukk, nor any spouse or
                -------------
child of any such officer or director, nor any trust of which any such officer
or director is a grantor, trustee or beneficiary, has any ownership interest in
or is a director, officer or employee of, or consultant to, any entity which is
a competitor, potential competitor or supplier of Hukk, or has any ownership
interest, in whole or in part, in any property, asset or right which is
associated with any property, asset or right owned or purported to be owned by
Hukk or which Hukk is at present operating or using or the use of which is
necessary or material to Hukk's business, or has, directly or indirectly,
engaged in any transaction with Hukk other than transactions inherent in the
capacities of director, officer, employee, consultant or stockholder.

     3.20  No Subsidiaries. Except as set forth on Schedule 3.20, Hukk does not
           ---------------                         -------------
own or control, in whole or in part, directly or indirectly, any corporation,
association, partnership or other business entity.

     3.21  Knowledge. When used in this Agreement, "to the knowledge" of Hukk,
           ---------
the Shareholder or the Shareholders means the Shareholder's actual knowledge or
information that the Shareholder would know had the Shareholder conducted a
reasonable investigation and inquiry (including inquiry of the officers of Hukk
with respect to the matters covered by such representations and warranties) and
an examination of whatever sources of information as are accessible to
Shareholder in order to verify the truth and accuracy of representations and
warranties. Shareholder acknowledges that Parent has relied and will rely on
such representations and warranties in executing this Agreement and in closing
the acquisition of the Shares pursuant to this Agreement, and agrees, prior to
the Closing Date, to promptly notify Parent in writing of any knowledge
Shareholder may obtain of any material change affecting such representations and
warranties.

                                      -9-
<PAGE>

     3.22  Availability of Information. Parent has made available for
           ---------------------------
examination by Hukk and the Shareholders and their representatives, copies of
the documents listed on Schedule 3.22, and has provided Hukk the opportunity to
                        -------------
examine such other documents and ask such questions of Parent as Hukk and each
Shareholder have deemed necessary, and Hukk and each Shareholder have received
satisfactory answers from Parent (or persons acting on Parent's behalf)
concerning the business of Parent, its affiliates, the entities it currently
plans to acquire and/or merge with, and the terms and conditions of the
transactions described herein. Notwithstanding the foregoing, nothing contained
in this representation shall affect the covenants, agreements, representations
and warranties made by Parent under this Agreement.

     3.23  Investor Representations of Shareholders. In connection with the
           ----------------------------------------
issuance and sale of common stock of Parent to each of the Shareholders as set
forth in Schedule 1.4(c), each Shareholder represents that he is acquiring the
Parent Shares for investment for his own account, not as a nominee or agent, and
not with the view to, or for resale in connection with, any distribution
thereof. Shareholder understands that the Parent Shares have not been registered
under the Securities Act of 1933, as amended (the "Securities Act") by reason of
a specific exemption from the registration provisions of the Securities Act.
Shareholder further understands that the Parent Shares have not been registered
with, or qualified by, any state securities authorities by reason of a specific
exemption from the registration or qualification provisions of such states. Such
exemptions afforded by the Securities Act and applicable state law depend, among
other things, on the bona fide nature of Shareholder's investment intent and the
accuracy of Shareholder's representations as expressed herein. Shareholder
understands that no public market now exists for any securities of Parent, that
Parent has made no assurances that a public market will ever exist for the
Shares, and that, even if such a public market exists at some future time,
Parent might not then be satisfying the current public information requirements
of Rule 144. Shareholder understands that Parent is under no obligation, and
makes no commitment, to register the Shares with the Securities and Exchange
Commission for sale to the public. Each Shareholder shall execute Investor's
Certificates which set forth more fully the investor representations above.

                                   ARTICLE 4

                    REPRESENTATIONS AND WARRANTIES OF PARENT

     Parent hereby represents and warrants to Hukk and to the Shareholders as
follows:

     4.1  Organization and Good Standing. Parent is a corporation duly organized
          ------------------------------
and validly existing under the laws of California, and has full corporate power
and authority to carry on its business as it is now being conducted, and to own
and operate the properties and assets now owned and operated by it. Parent is
duly qualified to do business in each and every jurisdiction where the failure
to qualify would have a material adverse effect upon its financial condition,
the conduct of its business or the ownership of its property and assets.

     4.2  Corporate Power and Authority. Parent has full corporate power and
          -----------------------------
authority to enter into this Agreement and to perform all of its covenants and
undertakings herein set forth. The execution and delivery of this Agreement and
the consummation of the transactions

                                      -10-
<PAGE>

contemplated hereby have been duly authorized by all necessary corporate action
on the part of Parent, and this Agreement is a valid and binding obligation of
Parent, enforceable in accordance with its terms, except as such enforcement may
be limited by applicable bankruptcy, insolvency, moratorium, or similar laws
affecting the rights of creditors generally.

     4.3  Conflict with Authority, Bylaws, etc. Neither the execution and
          ------------------------------------
delivery of this Agreement nor the consummation of the transactions contemplated
hereby in the manner herein provided will:

          (a) contravene any provision of the Certificate of Incorporation or
Bylaws of Parent;

          (b) violate, be in conflict with, constitute a default under, cause
the acceleration of any payments pursuant to, or otherwise impair the good
standing, validity, and effectiveness of any lease, license, permit,
authorization, or approval applicable to Parent; or

          (c) to the knowledge of Parent, violate any provision of law, role,
regulation, order, or permit to which Parent is subject.

     4.4  No Conflict with Other Instruments. The execution, delivery and
          ----------------------------------
performance of this Agreement by Parent will not result in a violation or breach
of any term or provision of, or constitute a default or accelerate the
performance required under, any indenture, mortgage, deed of trust or other
contract or agreement to which Parent is a party or by which Parent or its
assets are bound, or violate any order, writ, injunction or decree of any court,
administrative agency or governmental body.

     4.5  Validity of Agreement. This agreement has been duly executed and
          ---------------------
delivered by Parent and is the legal, valid and binding obligation of Parent in
accordance with its terms.

                                   ARTICLE 5

         ACTIVITIES BY HUKK AND SHAREHOLDERS PRIOR TO THE CLOSING DATE

     5.1  Operation of Business. Hukk and each Shareholder hereby agree, jointly
          ---------------------
and severally, that from and after the date hereof to the Closing Date, except
as otherwise contemplated by this Agreement and except as otherwise agreed to in
writing by Parent, Hukk shall conduct its business solely in the ordinary
course, and the Shareholders and Hukk shall:

          (a) not amend Hukk's Certificate of Incorporation or Bylaws, except as
may be necessary to carry out this Agreement or as required by law;

          (b) not change Hukk's corporate name or permit the use thereof by any
other corporation;

          (c) not pay or agree to pay to any employee, officer, or director of
Hukk any increase in compensation other than in the ordinary course of business;

                                      -11-
<PAGE>

          (d) not make any changes in Hukk's management;

          (e) not merge or consolidate Hukk with any other corporation or allow
it to acquire or agree to acquire or be acquired by any corporation,
association, partnership, joint venture, or other entity;

          (f) not amend or permit Hukk to default in any of its obligations
under any of the Contracts;

          (g) not declare or pay any dividend or make any distribution on any
shares of its capital stock or redeem, purchase or otherwise acquire any shares
of its capital stock;

          (h) not sell or transfer any of Hukk's tangible or intangible assets
having an aggregate book value of One Thousand Dollars ($1,000) or more, other
than sales of inventory in the ordinary course of business, or create any lien
or encumbrance on any of Hukk's assets or permit Hukk to incur any debt
liability or obligation, permit Hukk to waive any right or cancel any debt or
claim, enter into any contract or agreement involving amounts exceeding One
Thousand Dollars ($1,000);

          (i) conduct Hukk's business in a diligent manner, and not make any
material change in its business practices; and

          (j) in good faith use their best efforts to (i) preserve Hukk's
business organization intact; (ii) keep available the services of its current
officers, employees, salesmen, agents and representatives; and (iii) maintain
the good will of its suppliers, customers and other persons having business
relations with Hukk and (iv) maintain all of its properties in good repair,
order and condition, and maintain in effect all of the insurance policies listed
on Schedule 3.12.
   -------------

     5.2  Confidentiality. Except as contemplated by this Agreement, Hukk and
          ---------------
each Shareholder agree jointly and severally to maintain in confidence and to
not use or disclose to any third person any confidential or proprietary
information or documents relating to Parent or any portion of its business that
is provided to Shareholder or Hukk by Parent in connection with the consummation
of the transactions contemplated by this Agreement, as provided by and according
to the terms of the Confidentiality and Non-Disclosure Agreement, dated as of
May 16, 1999, by and among Hukk, the Shareholders and Parent, which agreement
shall survive the signing of this Agreement but not the Closing.

     5.3  Access to Information. Hukk and the Shareholders agree, joint and
          ---------------------
severally, to cooperate fully with Parent and shall provide Parent and its
accountants, counsel, and other representatives, during normal business hours
(or otherwise agreed upon by Hukk), full access to the books, records,
equipment, real estate, contracts, and other assets of Hukk and full opportunity
to discuss Hukk's business, affairs, and assets with its officers and
independent accountants and furnish to Parent and its representatives copies of
such documents, records, and information with respect to the affairs of Hukk, as
Parent or its representatives may reasonably request and without unreasonably
disrupting the ordinary conduct of Hukk's business.

                                      -12-
<PAGE>

     5.4  Best Efforts. Between the date of this Agreement and the Closing Date,
          ------------
Hukk and the Shareholders shall use their best efforts to cause the conditions
in Article 7 to be met.

                                   ARTICLE 6

                 ACTIVITIES BY PARENT PRIOR TO THE CLOSING DATE

     6.1  Confidentiality. Except as contemplated by this Agreement, Parent
          ---------------
shall maintain in confidence and not use or disclose to any third person any
confidential or proprietary information or documents relating to the
Shareholders or Hukk or any portion of their business that is provided to Parent
by the Shareholders or Hukk in connection with the consummation of the
transactions contemplated by this Agreement, as provided by and according to the
terms of the Confidentiality and Non-Disclosure Agreement, dated as of May 16,
1999, by and among Hukk, the Shareholders and Parent, which agreement shall
survive the signing of this Agreement but not the Closing.

     6.2  Access to Information. Parent agrees to cooperate fully with Hukk and
          ---------------------
the Shareholders and, to the extent Parent would provide such information to
employees and minority shareholders of Parent, shall provide Hukk and the
Shareholders and their accountants, counsel, and other representatives, during
normal business hours (or otherwise agreed upon by Parent), full access to the
books and records of Parent and full opportunity to discuss Parent's business,
affairs, and assets with its officers and independent accountants and furnish to
Hukk and the Shareholders and their representatives copies of such records and
information with respect to the affairs of Parent as Hukk and Shareholder or
their representatives may reasonably request and without unreasonably disrupting
the ordinary conduct of Parent's business. Specific detail human resources and
stock ownership or stock option information which requires confidentiality may
not be made available and is agreed by Hukk and the Shareholders to remain
confidential to authorized personnel and officers of Parent.

     6.3  Employee Incentive Stock Options for Shareholders. Parent shall grant
          -------------------------------------------------
Shareholders options to purchase an aggregate of Fifty Thousand (50,000) shares
of common stock of the Company pursuant to the terms and conditions of Stock
Option Agreements in substantially the form attached hereto as Exhibit B-1, B-2,
                                                               -----------  ---
and B-3.
    ---

     6.4  Best Efforts. Between the date of this Agreement and the Closing Date,
          ------------
Parent will use its best efforts to cause the conditions in Article 7 to be met.

                                   ARTICLE 7

                      CONDITIONS PRECEDENT TO THE CLOSING

     7.1  Obligation of Parent to Close. The obligations of Parent to consummate
          -----------------------------
the Stock Purchase shall be subject to the satisfaction or the waiver by Parent
of the following conditions on or prior to the Closing Date:

                                      -13-
<PAGE>

          (a) Compliance with Agreement. Hukk and each Shareholder shall have
              -------------------------
performed all covenants and agreements to be performed by Hukk or the
Shareholders under this Agreement on or prior to the Closing Date, and all of
the representations and warranties of Hukk and each Shareholder set forth herein
shall be true and correct in all respects as of and with respect to the Closing
Date to the same extent as if given on that date after giving effect to any
supplements to the Schedule of Exceptions made after the date hereof. Hukk and
the Shareholders shall have delivered to Parent a certificate to such effect
dated the Closing Date.

          (b) Litigation Affecting Closing. On the Closing Date, no proceeding
              ----------------------------
brought by any individual or entity other than the Parties shall be pending or
threatened before any court or governmental agency in which it is sought to
restrain or prohibit or to obtain damages or other relief in connection with
this Agreement or the consummation of the transactions contemplated hereby.

          (c) Required Consents. The holders of any material indebtedness of
              -----------------
Hukk, and the parties to any contracts, to the extent that their consent or
approval is required under the pertinent agreement for the consummation of the
transaction contemplated hereby in the manner provided herein or the
continuation of such agreement without termination or penalty to Hukk, shall
have granted such consent or approval.

          (d) Deliveries. Hukk and the Shareholders shall have delivered to
              ----------
Parent the following:

               (i) The Noncompetition Agreements with each of the Shareholders
referenced in Section 11.1 executed by the Shareholder party thereto.

               (ii) The Employment Agreements between Hukk and each of the
Shareholders in the forms attached hereto as Exhibits C-l, C-2, and C-3 executed
                                             ------------  ---      ---
by the Shareholders party thereto.

               (iii)  The Certificate of Hukk referenced in Section 7.1(a)
executed by a duly authorized officer of Hukk.

               (iv) Investor's Certificates executed by each Shareholder as
referenced in Section 3.23.

          (e) Liens on Stock. Shareholders shall have obtained releases of all
              --------------
liens on or claims to the Shares, including those listed on Schedule 3.5, or
                                                            ------------
made arrangement satisfactory to Parent regarding such liens or claims.

          (f) Materially Adverse Information as to Hukk. Parent shall not have
              -----------------------------------------
become aware of any materially adverse information as to Hukk's financial
condition, business or prospects as a result of Parent's due diligence
investigation of Hukk.

     7.2  Obligation of Hukk and Shareholder to Close. The obligations of Hukk
          -------------------------------------------
and the Shareholders to consummate the Stock Purchase shall be subject to the
satisfaction of the following conditions on or prior to the Closing Date:

                                      -14-
<PAGE>

          (a) Compliance with Agreement. Parent shall have performed all
              -------------------------
covenants and agreements to be performed by it under this Agreement on or prior
to the applicable Closing Date and shall have delivered to the Shareholders a
certificate dated as of such Closing Date, signed on behalf of Parent by its
President, to the effect that the transactions contemplated by this Agreement
were duly authorized by all necessary corporate action on the part of Parent.

          (b) Litigation Affecting Closing. On the Closing Date, no proceeding
              ----------------------------
brought by any individual or entity other than the Parties shall be pending or
threatened before any court or governmental agency in which it is sought to
restrain or prohibit or to obtain damages or other relief in connection with
this Agreement or the consummation of the transaction contemplated hereby.

          (c) Noncompetition Agreements. Parent shall have executed and
              -------------------------
delivered to Shareholder the Noncompetition Agreements referenced in Section
11.1.

          (d) Materially Adverse Information as to Parent. Hukk shall not have
              -------------------------------------------
become aware of any materially adverse information as to the Parent's financial
condition, business or prospects as a result of Hukk's due diligence
investigation of the Parent.

                                   ARTICLE 8

                                INDEMNIFICATION

     8.1  By Hukk and the Shareholders. The representations and warranties of
          ----------------------------
Hukk and Shareholders in Section 3 of this Agreement shall survive the Closing.
From and after the Closing Date, Hukk and the Shareholders shall indemnify and
hold harmless Parent, Hukk and their respective officers, directors, employees,
shareholders and agents from and against any and all damages, losses,
obligations, deficiencies, liabilities, claims, encumbrances, penalties, costs,
and expenses, including reasonable attorneys' fees (collectively, "Losses"),
that any of them may suffer or incur, resulting from, related to, or arising out
of any misrepresentation or breach of any representation and warranty by the
Shareholders or Hukk contained in this Agreement, any breach of warranty, breach
of guarantee, or nonfulfillment of any of the respective covenants of the
Shareholders or Hukk in this Agreement or from any misrepresentation in or
omission from any Schedule to this Agreement, certificate, financial statement,
or from any other document furnished or to be furnished to Parent hereunder and
any and all actions, suits, investigations, proceedings, demands, assessments,
audits, judgments and claims arising out of any of the foregoing.

     8.2  By Hukk Regarding License Dispute. In addition to the indemnification
          ---------------------------------
obligations in Section 8.1, the Shareholders shall jointly and severally
indemnify and hold harmless Parent and Hukk from and against any Losses arising
from the patent infringement dispute between Hukk and ComSonics, Inc. regarding
ComSonics, Inc.'s U.S. Patent No. 4,685,065; provided, however, that payments
made and expenses incurred by Hukk or Parent pursuant to the obligations or Hukk
set forth in the License Agreement between Hukk and ComSonics, Inc. shall not
constitute "Losses" as such term is used herein.

                                      -15-
<PAGE>

     8.3  By Parent. The representations and warranties of Parent in Section 4
          ---------
of this Agreement shall survive the Closing. From and after the Closing Date,
Parent agrees to indemnify and hold harmless the Shareholders and Hukk and its
officers, directors, employees, shareholders and agents from and against any and
all losses that any of them may suffer or incur, resulting from, related to, or
arising out of any misrepresentation, breach of warranty, or nonfulfillment of
any of the covenants or agreements of Parent in this Agreement or from any
misrepresentation in or omission from any certificate or document furnished or
to be furnished to the Shareholders or Hukk by Parent hereunder and any and all
actions, suits, investigations, proceedings, demands, assessments, audits,
judgments, and claims arising out of any of the foregoing.

     8.4  Notice. Promptly after acquiring knowledge of any Losses against which
          ------
Hukk and the Shareholders have indemnified Parent or against which Parent has
indemnified Hukk and the Shareholders, or as to which any party may be liable,
Hukk and the Shareholders or Parent, as the case may be, shall give to the other
party written notice thereof. Each indemnifying party shall, at its own expense,
promptly defend, contest or otherwise protect against any Losses against which
it has indemnified an indemnified party, and each indemnified party shall
receive from the other party all necessary and reasonable cooperation in said
defense including, but not limited to, the services of employees of the other
party who are familiar with the transactions out of which any such Losses may
have arisen. The indemnifying party shall have the right to control the defense
of any such proceeding unless it is relieved of its liability hereunder with
respect to such defense by the indemnified party. The indemnifying party shall
have the right, at its option, and, unless so relieved, to compromise or defend,
at its own expense by its own counsel, any such matter involving the asserted
liability of the indemnified party. In the event that the indemnifying party
shall undertake to compromise or defend any such asserted liability, it shall
promptly notify the indemnified party of its intention to do so. In the event
that an indemnifying party, after written notice from an indemnified party,
fails to take timely action to defend the same, the indemnified party shall have
the right to defend the same by counsel of its own choosing, but at the cost and
expense of the indemnifying party.

                                   ARTICLE 9

                              BROKERAGE; EXPENSES

     9.1  Brokerage. None of the parties, nor, where applicable, any of their
          ---------
respective shareholders, officers, directors or employees, has employed or will
employ any broker, agent, finder, or consultant, and each Party represents to
the other Parties that such Party has not incurred nor will the other Parties
incur any liability for any brokerage fees, commissions, finders' fees, or other
fees, in connection with the negotiation or consummation of the transactions
contemplated by this Agreement.

     9.2  Expenses. Except as otherwise expressly provided in this Agreement,
          --------
each of the parties agrees to bear its own expenses of any character incurred in
connection with this Agreement or the transactions contemplated hereby.

                                      -16-
<PAGE>

                                   ARTICLE 10

                          TERMINATION PRIOR TO CLOSING

     10.1  Termination of Agreement. This Agreement may be terminated at any
           ------------------------
time prior to the Closing:

          (a) Mutual Consent. By the mutual consent of Parent, Hukk and the
              --------------
Shareholders;

          (b) Material Breach. By Parent, Hukk or Shareholder in writing,
              ---------------
without liability, if the other party shall (1) fail to perform in any material
respect its agreements contained herein required to be performed by, in, on or
prior to the Closing Date or (2) materially breach any of its representations,
warranties, agreements, or covenants contained herein, provided that such
failure or breach is not cured within ten (10) days after such party has been
notified of the other party's intent to terminate this Agreement pursuant
hereto; or

     10.2  Termination of Obligations. Termination of this Agreement pursuant to
           --------------------------
this Article 10 shall terminate all obligations of the parties hereunder, except
for the obligations set forth in Article 9.

                                   ARTICLE 11

                             POST-CLOSING COVENANT

     11.1  Covenant Not To Compete. For a period of four years following the
           -----------------------
Closing, the Shareholders agree not to compete directly or indirectly with
Parent as more fully set forth in Non-Competition Agreements in the forms
attached hereto as Exhibits D-1, D-2, and D-3.
                   ------------  ---      ---

                                   ARTICLE 12

                                    GENERAL

     12.1  Entire Agreement; Amendments. This Agreement constitutes the entire
           ----------------------------
understanding between the parties with respect to the subject matter contained
herein and supersedes any prior understandings and agreements among them
respecting such subject matter. This Agreement may be amended, supplemented, or
terminated only by a written instrument duly executed by all of the parties.

     12.2  Headings. The headings in this Agreement are for convenience of
           --------
reference only and shall not affect its interpretation.

     12.3  Gender; Number. Words of gender may be read as masculine, feminine,
           --------------
or neuter, as required by context. Words of number may be read as singular or
plural, as required by context.

                                      -17-
<PAGE>

     12.4  Exhibits and Schedules. Each Exhibit and Schedule referred to herein
           ----------------------
is incorporated into this Agreement by such reference.

     12.5  Severability. If any provision of this Agreement is held illegal,
           ------------
invalid, or unenforceable, such illegality, invalidity, or unenforceability
shall not affect any other provision hereof. This Agreement shall, in such
circumstances, be deemed modified to the extent necessary to render enforceable
the provisions hereof.

     12.6  Notices. All notices, requests, demands, waivers, consents,
           -------
approvals, or other communications required or permitted hereunder shall be in
writing and shall be deemed to have been given if delivered personally, sent by
telegram, telex or sent by certified or registered mail or same day or overnight
courier service, postage prepaid, return receipt requested, to the following
addresses:

          If to Parent, to:

               Sunrise Telecom, Inc.
               22 Great Oaks Boulevard
               San Jose, CA 95119
               Attention: Paul Chang, President
               Facsimile: (408) 972-2158

          With a copy to:

               Hopkins & Carley
               A Law Corporation
               2 West Santa Clara Street, Sixth Floor
               San Jose, CA 95113
               Attention: Gail M. Hashimoto, Esq.
               Facsimile: (408) 998-4790

          If to Hukk, to:

               Hukk Engineering, Inc.
               3250-D Peachtree Corners Circle
               Norcross, GA 30092
               Attention: Clifford D. Brown
               Facsimile: (770) 446-6850

          If to Clifford D. Brown, to:

               9430 Dominion Way
               Alpharetta, GA 30202
               Attention: Clifford D. Brown
               Facsimile: (770) 446-6850

                                      -18-
<PAGE>

          With a copy to:

               Hassett, Cohen, Goldstein, LLP
               990 Hammond Drive, Suite 990
               Atlanta, VA 30328
               Attention: Joseph Gottlieb
               Facsimile: (770) 901-9417
               If to Robert L. Richards, to:

               1015 Hembree Grove Drive
               Roswell, GA 30076
               Attention: Robert L. Richards
               Facsimile: (770) 446-6850

          With a copy to:

               Hassett, Cohen, Goldstein, LLP
               990 Hammond Drive, Suite 990
               Atlanta, VA 30328
               Attention: Joseph Gottlieb
               Facsimile: (770) 901-9417

          If to James A. Barker, to:

               108 Indian Branch
               Lawrenceville, GA 30243
               Attn: James A. Barker
               Facsimile: (770) 446-6850

          With a copy to:

               Hassett, Cohen, Goldstein, LLP
               990 Hammond Drive, Suite 990
               Atlanta, VA 30328
               Attention: Joseph Gottlieb
               Facsimile: (770) 901-9417

     Notice of any change in any such address shall also be given in the manner
set forth above. Whenever the giving of notice is required, the giving of such
notice may be waived by the party entitled to receive such notice.

     12.7  Waiver. The failure of any party to insist upon performance of any of
           ------
the terms or conditions of this Agreement shall not constitute a waiver of any
of his/its rights hereunder.

                                      -19-
<PAGE>

     12.8  Assignment. No party may assign any of his/its rights or delegate any
           ----------
of his/its obligations hereunder without the prior written consent of the other
parties.

     12.9  Successors and Assigns. This Agreement binds, inures to the benefit
           ----------------------
of, and is enforceable by the successors and permitted assigns of the parties
and does not confer any rights on any other persons or entities.

     12.10  Governing Law. This Agreement shall be construed and enforced in
            -------------
accordance with California law.

     12.11  No Benefit to Others. The representations, warranties, covenants,
            --------------------
and agreements contained in this Agreement are for the sole benefit of the
parties hereto and their successors and permitted assigns, and they shall not be
construed as conferring and are not intended to confer any rights on any other
persons.

     12.12  Publicity. During the period ending on the Closing Date, all notices
            ---------
to third parties and all other publicity relating to the transactions
contemplated by this Agreement shall be jointly planned, coordinated, and agreed
to by Hukk and Parent. During the period ending on the Closing Date, the
Shareholders shall not act unilaterally in this regard without the prior
approval of Parent; provided, however, that such approval shall not be
unreasonably withheld by Parent.

     12.13  Counterparts. This Agreement may be executed in one or more
            ------------
counterparts, each of which shall for all purposes be deemed to be an original
and all of which shall constitute the same instrument.

                            [Execution Pages Follow]

                                      -20-
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first above written.

                              PARENT:

                              SUNRISE TELECOM, INC.

                              By:  /s/ Paul Chang
                                   --------------
                                   Paul Chang, President

                              HUKK:

                              HUKK ENGINEERING, INC.

                              By:    /s/ Clifford D. Brown
                                     ---------------------
                              Title: President
                                     ---------

                              SHAREHOLDERS:

                              /s/ Clifford D. Brown
                              ---------------------
                              Clifford D. Brown

                              /s/ Robert L. Richards
                              ----------------------
                              Robert L. Richards

                              /s/ James E. Barker
                              -------------------
                              James E. Barker

                  [Signature Page to Stock Purchase Agreement]

                                      -21-
<PAGE>

                                   SCHEDULES

<TABLE>
<S>                                                                <C>
Payment Purchase Price Wire Transfer At Closing                    Schedule 1.4(a)
-----------------------------------------------------------------------------------------
 Parent Shares Issued At Closing                                   Schedule 1.4(c)
-----------------------------------------------------------------------------------------
 Directors Of Hukk At Closing                                      Schedule 2.1
-----------------------------------------------------------------------------------------
 Officers Of Hukk At Closing                                       Schedule 2.2
-----------------------------------------------------------------------------------------
 Validity Of Contemplated Transactions/Consents Of Hukk            Schedule 3.3
-----------------------------------------------------------------------------------------
 Capitalization Of Hukk                                            Schedule 3.4
-----------------------------------------------------------------------------------------
 Ownership Of Hukk Shares                                          Schedule 3.5
-----------------------------------------------------------------------------------------
 Title To Properties Held By Hukk                                  Schedule 3.6
-----------------------------------------------------------------------------------------
 Intangibles; Trademarks, Trade Names, Service Marks, Registered   Schedule 3.7
  Copyrights, Patents And Pending Patents Of Hukk
-----------------------------------------------------------------------------------------
 Financial Information Of Hukk                                     Schedule 3.8
-----------------------------------------------------------------------------------------
 Tax Matters                                                       Schedule 3.9
-----------------------------------------------------------------------------------------
 Litigation Matters/Compliance With Law Issues                     Schedule 3.10(a)
-----------------------------------------------------------------------------------------
 Permits Held by Hukk                                              Schedule 3.10(b)
-----------------------------------------------------------------------------------------
 Express/Implied Warranty Product Liability Claims Against Hukk    Schedule 3.10(c)
-----------------------------------------------------------------------------------------
 Employee Benefits/Compensation Plans Offered By                   Schedule 3.11(a)
-----------------------------------------------------------------------------------------
</TABLE>

                                      -22-
<PAGE>

<TABLE>
<S>                                                                <C>
Hukk
-----------------------------------------------------------------------------------------
 Erisa Matters                                                     Schedule 3.11(b)
-----------------------------------------------------------------------------------------
 Insurance Policies Owned/Maintained By Hukk Engineering           Schedule 3.12
-----------------------------------------------------------------------------------------
 Material Obligations Of Hukk Pursuant To Other                    Schedule 3.13
  Contracts/Agreements
-----------------------------------------------------------------------------------------
 Other Transactions By Hukk As Of Balance Sheet Date               Schedule 3.14
-----------------------------------------------------------------------------------------
 Financial Institution/Bank Accounts Of Hukk                       Schedule 3.15
-----------------------------------------------------------------------------------------
 Compensation Arrangements Of Officers, Employees And Agents Of    Schedule 3.16
  Hukk
-----------------------------------------------------------------------------------------
 Corporate Records Of Hukk                                         Schedule 3.17
-----------------------------------------------------------------------------------------
 Environmental Law Compliance By Hukk                              Schedule 3.18
-----------------------------------------------------------------------------------------
 Non-Ownership Suppliers And Customers Of Hukk                     Schedule 3.19
-----------------------------------------------------------------------------------------
 Subsidiaries Owned/Controlled By Hukk                             Schedule 3.20
-----------------------------------------------------------------------------------------
 Information and Documents of Parent                               Schedule 3.22
-----------------------------------------------------------------------------------------
</TABLE>

                                      -23-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]