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  <p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  </div>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">SECURITIES AND EXCHANGE
  COMMISSION</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington,
  D.C. 20549</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <div style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">
  
  <hr size="1" width="25%" noshade color="black" align="center">
  
  </font></b></div>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM&nbsp;8-K</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>
  
  <p style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant to Section&nbsp;13 or 15(d)&nbsp;of
  the</font></b></p>
  
  <p style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Securities Exchange Act of 1934</font></b></p>
  
  <p style="line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Date
  of Report:&#160; </font></b><b><font face="Times New Roman" style="font-weight:bold;">April&nbsp;24, 2008</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Date
  of earliest event reported)</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center">
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SALLY
    HOLDINGS LLC</font></b></p>
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as <br>
    specified in its charter)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SALLY
    CAPITAL INC.</font></b></p>
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as<br>
    specified in its charter)</font></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other jurisdiction<br>
    of</font></p>
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">incorporation or<br>
    organization)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other jurisdiction<br>
    of</font></p>
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">incorporation or<br>
    organization)</font></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">36-4472381</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">56-2620323</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer<br>
    Identification Number)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer<br>
    Identification Number)</font></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">333-144427</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">333-144427-10</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission file number)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission file number)</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">3001 Colorado
  Boulevard<br>
  Denton, Texas 76210</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">(Address of principal
  executive offices)</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">(940) 898-7500</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">(Registrants&#146; telephone
  number, including area code)</font></b></p>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p align="left" style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Check
  the appropriate box below if the Form&nbsp;8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any of the
  following provisions:</font></b></p>
  
  <p align="left" style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p align="left" style="font-size:10.0pt;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:normal;">o</font></b><font face="Times New Roman" style="font-weight:normal;">&#160;&#160;&#160;&#160;&#160; Written
  communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR
  230.425)</font></p>
  
  <p align="left" style="font-size:10.0pt;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:normal;">o</font></b><font face="Times New Roman" style="font-weight:normal;">&#160;&#160;&#160;&#160;&#160; Soliciting
  material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR
  240.14a-12)</font></p>
  
  <p align="left" style="font-size:10.0pt;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:normal;">o</font></b><font face="Times New Roman" style="font-weight:normal;">&#160;&#160;&#160;&#160;&#160; Pre-commencement
  communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17
  CFR 240.14d-2(b))</font></p>
  
  <p align="left" style="font-size:10.0pt;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Wingdings" style="font-size:10.0pt;font-weight:normal;">o</font></b><font face="Times New Roman" style="font-weight:normal;">&#160;&#160;&#160;&#160;&#160; Pre-commencement
  communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17
  CFR 240.13e-4(c))</font></p>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p style="border:none;font-weight:bold;line-height:normal;margin:0in 0in .0001pt;padding:0in;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>
  
  </div>
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <div align="left" style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">
  
  <hr size="3" width="100%" noshade color="#010101" align="left">
  
  </font></b></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105540\08-12044-1\task2878425\12044-1-ba.htm',USER='105540',CD='Apr 21 22:31 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><strong><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ITEM
  5.02.&nbsp; DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
  APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.</font></b></strong></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Resignation
  of Board Member.</font></u></b><b>&#160; </b>On April&nbsp;24, 2008, Donald J. Gogel resigned from the Board of
  Directors (the &#147;Board&#148;) of Sally Beauty Holdings,&nbsp;Inc. (the &#147;Company&#148;).&nbsp;&nbsp;Mr.&nbsp;Gogel,
  a Class&nbsp;III member of the Board and a member of its Finance Committee, has
  served as a Director of the Company since November&nbsp;of 2006.</p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Election
  of Board Member.</font></u></b><b>&#160; </b>On April&nbsp;24, 2008, the Board of Directors of the Company elected
  Kenneth A. Giuriceo as a Class&nbsp;III member of the Board, with a term
  expiring in 2009.&#160; Mr.&nbsp;Giuriceo was also elected to serve
  as a member of the Finance Committee of the Board.</p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Giuriceo,
  34,</font> is a Partner at
  Clayton Dubilier&nbsp;&amp; Rice,&nbsp;Inc.&#160;
  Prior to joining Clayton Dubilier&nbsp;&amp; Rice,&nbsp;Inc. in 2003, Mr.&nbsp;Giuriceo
  worked in the principal investment area of Goldman, Sachs&nbsp;&amp; Co. from
  2002 to December&nbsp;2003.&#160; Mr.&nbsp;Giuriceo
  is currently a member of the Board of Directors of The ServiceMaster Company, a
  private outsourcing services company, where he serves as chair of its audit
  committee and as a member of its compensation committee.&#160; Mr.&nbsp;Giuriceo earned a Bachelor of
  Science degree from Boston College and a Masters of Business Administration
  from Harvard Business School.</p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Stockholders Agreement.</font></u></b>&#160; Mr.&nbsp;Giuriceo&#146;s election was made
  pursuant to the terms and conditions of that certain Stockholders Agreement,
  dated November&nbsp;16, 2006, and executed in connection with the Company&#146;s
  separation from the Alberto-Culver Company, the Company, CDRS Acquisition LLC
  and CD&amp;R Parallel Fund&nbsp;VII,&nbsp;L.P., (the &#147;CDR Investors&#148;) and Mrs.&nbsp;Carol
  L. Bernick, Mr.&nbsp;Leonard H. Lavin and certain of the Company&#146;s other
  stockholders (the &#147;Lavin Family Stockholders&#148;), entered into a stockholders
  agreement (the &#147;Stockholder Agreement&#148;). The Stockholders Agreement provides,
  in part, that until the earlier of November&nbsp;16, 2016 and the termination
  of the Stockholders Agreement, the CDRS designees who are members of the
  Nominating and Corporate Governance Committee of the Board (or if none remain, the
  remaining CDRS designees) will have the right to designate for nomination or
  appointment to the Board the individual to replace any CDRS designee upon his
  or her death, retirement, disqualification or removal (other than removal for
  cause) so long as CDRS has the right to designate such CDRS designee under the
  Stockholders Agreement.&#160; In addition, the
  Stockholders Agreement provides that the Finance Committee of the Board will
  have four members, at least two of whom will be CDRS designees.</p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Letter Agreement with Clayton,
  Dubilier&nbsp;&amp; Rice,&nbsp;Inc.</font></u>&#160;&#160; </b>The Company is a&#160; party to a letter agreement with Clayton,
  Dubilier&nbsp;&amp; Rice,&nbsp;Inc., dated as of February&nbsp;26, 2007, (the &#147;CD&amp;R
  Letter Agreement&#148;), pursuant to which it pays Clayton, Dubilier&nbsp;&amp; Rice,&nbsp;Inc.
  $37,500 per calendar quarter for each of its professional employees who is
  designated by CDRS to serve on the Board. In addition, pursuant to the Letter
  Agreement, such </p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\105540\08-12044-1\task2878425\12044-1-ba.htm',USER='105540',CD='Apr 21 22:31 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">designees (other than the
  Chairman of the Board to the extent that such Chairman remains a designee) will
  receive reimbursement for travel and other out-of-pocket expenses in the same
  manner as other Directors. In consideration for these payments, Clayton,
  Dubilier&nbsp;&amp; Rice,&nbsp;Inc. has waived, on behalf of such designees to
  the Board, any right to the payment of other compensation for such person&#146;s
  service as a director.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Director Indemnification
  Agreement.</font></u></b><b>  </b>&#160;&#160;On April&nbsp;24,
  2008, the Board approved and authorized the Company to enter into an
  indemnification agreement with Mr.&nbsp;Giuriceo in substantially the form
  furnished as Exhibit&nbsp;10.1 to the Company&#146;s Current Report on Form&nbsp;8-K
  filed on December&nbsp;7, 2006, which is incorporated herein by reference. The
  form of indemnification agreement is intended to provide directors with the
  maximum protection available under applicable law in connection with their
  services to the Company.</p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  indemnification agreement, upon its execution by the Company and Mr.&nbsp;Giuriceo,
  will provide, among other things, that subject to the procedures set forth
  therein, the Company will, to the fullest extent permitted by applicable law,
  indemnify Mr.&nbsp;Giuriceo if, by reason of his corporate status as a
  Director, he incurs any losses, liabilities, judgments, fines, penalties or
  amounts paid in settlement in connection with any threatened, pending or
  completed proceeding, whether of a civil, criminal administrative or
  investigative nature. In addition, the indemnification agreement provides for
  the advancement of expenses incurred by Mr.&nbsp;Giuriceo, subject to certain
  exceptions, in connection with any proceeding covered by the indemnification
  agreement. The indemnification agreement also requires that the Company cover Mr.&nbsp;Giuriceo
  under liability insurance available to any of the Company&#146;s directors, officers
  or employees.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\105540\08-12044-1\task2878425\12044-1-ba.htm',USER='105540',CD='Apr 21 22:31 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURES</font></p>
  
  <p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the
  requirements of the Securities Exchange Act of 1934, each registrant has duly
  caused this report to be signed on its behalf by the undersigned thereunto duly
  authorized.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
    &nbsp;April&nbsp;24, 2008</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="362" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:271.35pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SALLY HOLDINGS LLC</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="322" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Raal H. Roos</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
    </td>
    <td width="322" valign="top" style="border:none;padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Raal H. Roos</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Vice President,
    Secretary and<br>
    General Counsel</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: &nbsp;April&nbsp;24, 2008</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="362" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:271.35pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SALLY CAPITAL INC.</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="322" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Raal H. Roos</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
    </td>
    <td width="322" valign="top" style="border:none;padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Raal H. Roos</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="358" valign="top" style="padding:0in 0in 0in 0in;width:268.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="40" valign="top" style="padding:0in 0in 0in 0in;width:29.7pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
    </td>
    <td width="322" valign="top" style="padding:0in 0in 0in 0in;width:241.65pt;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior
    Vice President, Secretary and<br>
    General Counsel</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\105540\08-12044-1\task2878425\12044-1-ba.htm',USER='105540',CD='Apr 21 22:31 2008' -->
  
  
  </body>
  
  </html>
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "a08-12044_18k.htm", "description": "CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES", "secsgml_size_bytes": 39672}]
metadata_filer: [{"company-data": {"conformed-name": "SALLY CAPITAL INC.", "cik": "0001385718", "irs-number": "562620323", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-144427-10", "film-number": "08775070"}, "business-address": {"street1": "3001 COLORADO BOULEVARD", "city": "DENTON", "state": "TX", "zip": "76210", "phone": "940-898-7500"}, "mail-address": {"street1": "3001 COLORADO BOULEVARD", "city": "DENTON", "state": "TX", "zip": "76210"}}, {"company-data": {"conformed-name": "SALLY HOLDINGS LLC", "cik": "0001385720", "assigned-sic": "5990", "irs-number": "364472381", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-144427", "film-number": "08775071"}, "business-address": {"street1": "3001 COLORADO BOULEVARD", "city": "DENTON", "state": "TX", "zip": "76210", "phone": "940-898-7500"}, "mail-address": {"street1": "3001 COLORADO BOULEVARD", "city": "DENTON", "state": "TX", "zip": "76210"}}]
text: SECURITIES AND EXCHANGE
  COMMISSION
  Washington,
  D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of
  the
  Securities Exchange Act of 1934
  Date
  of Report:
  April 24, 2008
  (Date
  of earliest event reported)
  SALLY
    HOLDINGS LLC
  (Exact name of registrant as
  specified in its charter)
  SALLY
    CAPITAL INC.
  (Exact name of registrant as
  specified in its charter)
  Delaware
  Delaware
  (State or other jurisdiction
  of
  incorporation or
  organization)
  (State or other jurisdiction
  of
  incorporation or
  organization)
  36-4472381
  56-2620323
  (I.R.S. Employer
  Identification Number)
  (I.R.S. Employer
  Identification Number)
  333-144427
  333-144427-10
  (Commission file number)
  (Commission file number)
  3001 Colorado
  Boulevard
  Denton, Texas 76210
  (Address of principal
  executive offices)
  (940) 898-7500
  (Registrants' telephone
  number, including area code)
  Check
  the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any of the
  following provisions:
  o
  Written
  communications pursuant to Rule 425 under the Securities Act (17 CFR
  230.425)
  o
  Soliciting
  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
  240.14a-12)
  o
  Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17
  CFR 240.14d-2(b))
  o
  Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17
  CFR 240.13e-4(c))
  ITEM
  5.02.  DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
  APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
  Resignation
  of Board Member.
  On April 24, 2008, Donald J. Gogel resigned from the Board of
  Directors (the "Board") of Sally Beauty Holdings, Inc. (the "Company").  Mr. Gogel,
  a Class III member of the Board and a member of its Finance Committee, has
  served as a Director of the Company since November of 2006.
  Election
  of Board Member.
  On April 24, 2008, the Board of Directors of the Company elected
  Kenneth A. Giuriceo as a Class III member of the Board, with a term
  expiring in 2009.  Mr. Giuriceo was also elected to serve
  as a member of the Finance Committee of the Board.
  Mr. Giuriceo,
  34,
  is a Partner at
  Clayton Dubilier & Rice, Inc. 
  Prior to joining Clayton Dubilier & Rice, Inc. in 2003, Mr. Giuriceo
  worked in the principal investment area of Goldman, Sachs & Co. from
  2002 to December 2003.  Mr. Giuriceo
  is currently a member of the Board of Directors of The ServiceMaster Company, a
  private outsourcing services company, where he serves as chair of its audit
  committee and as a member of its compensation committee.  Mr. Giuriceo earned a Bachelor of
  Science degree from Boston College and a Masters of Business Administration
  from Harvard Business School.
  Stockholders Agreement.
  Mr. Giuriceo's election was made
  pursuant to the terms and conditions of that certain Stockholders Agreement,
  dated November 16, 2006, and executed in connection with the Company's
  separation from the Alberto-Culver Company, the Company, CDRS Acquisition LLC
  and CD&R Parallel Fund VII, L.P., (the "CDR Investors") and Mrs. Carol
  L. Bernick, Mr. Leonard H. Lavin and certain of the Company's other
  stockholders (the "Lavin Family Stockholders"), entered into a stockholders
  agreement (the "Stockholder Agreement"). The Stockholders Agreement provides,
  in part, that until the earlier of November 16, 2016 and the termination
  of the Stockholders Agreement, the CDRS designees who are members of the
  Nominating and Corporate Governance Committee of the Board (or if none remain, the
  remaining CDRS designees) will have the right to designate for nomination or
  appointment to the Board the individual to replace any CDRS designee upon his
  or her death, retirement, disqualification or removal (other than removal for
  cause) so long as CDRS has the right to designate such CDRS designee under the
  Stockholders Agreement.  In addition, the
  Stockholders Agreement provides that the Finance Committee of the Board will
  have four members, at least two of whom will be CDRS designees.
  Letter Agreement with Clayton,
  Dubilier & Rice, Inc.
  The Company is a  party to a letter agreement with Clayton,
  Dubilier & Rice, Inc., dated as of February 26, 2007, (the "CD&R
  Letter Agreement"), pursuant to which it pays Clayton, Dubilier & Rice, Inc.
  $37,500 per calendar quarter for each of its professional employees who is
  designated by CDRS to serve on the Board. In addition, pursuant to the Letter
  Agreement, such
  2
  designees (other than the
  Chairman of the Board to the extent that such Chairman remains a designee) will
  receive reimbursement for travel and other out-of-pocket expenses in the same
  manner as other Directors. In consideration for these payments, Clayton,
  Dubilier & Rice, Inc. has waived, on behalf of such designees to
  the Board, any right to the payment of other compensation for such person's
  service as a director.
  Director Indemnification
  Agreement.
  On April 24,
  2008, the Board approved and authorized the Company to enter into an
  indemnification agreement with Mr. Giuriceo in substantially the form
  furnished as Exhibit 10.1 to the Company's Current Report on Form 8-K
  filed on December 7, 2006, which is incorporated herein by reference. The
  form of indemnification agreement is intended to provide directors with the
  maximum protection available under applicable law in connection with their
  services to the Company.
  The
  indemnification agreement, upon its execution by the Company and Mr. Giuriceo,
  will provide, among other things, that subject to the procedures set forth
  therein, the Company will, to the fullest extent permitted by applicable law,
  indemnify Mr. Giuriceo if, by reason of his corporate status as a
  Director, he incurs any losses, liabilities, judgments, fines, penalties or
  amounts paid in settlement in connection with any threatened, pending or
  completed proceeding, whether of a civil, criminal administrative or
  investigative nature. In addition, the indemnification agreement provides for
  the advancement of expenses incurred by Mr. Giuriceo, subject to certain
  exceptions, in connection with any proceeding covered by the indemnification
  agreement. The indemnification agreement also requires that the Company cover Mr. Giuriceo
  under liability insurance available to any of the Company's directors, officers
  or employees.
  3
  SIGNATURES
  Pursuant to the
  requirements of the Securities Exchange Act of 1934, each registrant has duly
  caused this report to be signed on its behalf by the undersigned thereunto duly
  authorized.
  Date:
     April 24, 2008
  SALLY HOLDINGS LLC
  By:
  /s/ Raal H. Roos
  Name:
  Raal H. Roos
  Title:
  Senior Vice President,
    Secretary and
  General Counsel
  Date:  April 24, 2008
  SALLY CAPITAL INC.
  By:
  /s/ Raal H. Roos
  Name:
  Raal H. Roos
  Title:
  Senior
    Vice President, Secretary and
  General Counsel
  4