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    <div style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center" align="center">UNITED
      STATES</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">SECURITIES
      AND
      EXCHANGE COMMISSION</div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-ALIGN: center" align="center">Washington,
      D.C. 20549</div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-ALIGN: center" align="center">
    </div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">
    </div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">FORM 8&#8209;K</div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-ALIGN: center" align="center">CURRENT
      REPORT </div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">Pursuant
      to
      Section 13 or 15(d) of the Securities Exchange Act of 1934</div>
    <div style="MARGIN: 0in 0in 6pt; TEXT-ALIGN: center" align="center">Date of
      Report:&#160; April 18, 2006&#160;&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center; tab-stops: center 3.25in right 6.5in" align="center">&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center; tab-stops: center 3.25in right 6.5in" align="center"><u>SAN
      Holdings, Inc.</u></div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-ALIGN: center" align="center">(Exact
      name
      of registrant as specified in its charter)</div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-ALIGN: center" align="center">&#160;</div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse; mso-table-layout-alt: fixed; mso-padding-alt: 0in 5.4pt 0in 5.4pt">

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              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">Colorado</div>
            </td>
            <td valign="top" width="66" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 49.5pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
            </td>
            <td valign="top" width="126" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 94.5pt; padding-top: 0in; border-bottom: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt;">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">0-16423</div>
            </td>
            <td valign="top" width="66" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 49.5pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
            </td>
            <td valign="top" width="187" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 140.35pt; padding-top: 0in; border-bottom: windowtext 1pt solid; mso-border-bottom-alt: solid windowtext .5pt;">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">84-0907969&#160;
</div>
            </td>
          </tr>
          <tr style="mso-yfti-irow: 1; mso-yfti-lastrow: yes;">
            <td valign="top" width="193" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 144.9pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">(State
                or other jurisdiction of incorporation)</div>
            </td>
            <td valign="top" width="66" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 49.5pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
            </td>
            <td valign="top" width="126" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 94.5pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">(Commission
                File Number)</div>
            </td>
            <td valign="top" width="66" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 49.5pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
            </td>
            <td valign="top" width="187" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 140.35pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">(IRS
                Employer Identification Number)</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center"><u>9800
      Pyramid Court, Suite 130, Englewood, CO 80112</u></div>
    <div style="MARGIN: 0in 0in 6pt; TEXT-ALIGN: center" align="center">(Address
      of
      Principal Executive Offices) (Zip Code)</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center"><u>(303)
      660-3933</u></div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-ALIGN: center" align="center">Registrant&#8217;s
      telephone number, including area code</div>
    <div style="MARGIN: 0in 0pt 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center; tab-stops: center 3.25in" align="left"><u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      None&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</u></div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-ALIGN: center" align="center">&#160;(Former
      name or former address, if changed since last report)</div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-ALIGN: left" align="left">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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:</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align="left">&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align="left">[&#160;&#160;&#160; ]&#160; Written communications
      pursuant to Rule
      425 under the Securities Act (17 CFR 230.425) </div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align="left">&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align="left">[&#160;&#160;&#160; ]&#160; Soliciting material
      pursuant to Rule
      14a-12 under the Exchange Act (17 CFR 240.14a-12) </div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align="left">&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align="left">[&#160;&#160;&#160; ]&#160; Pre-commencement
      communications pursuant
      to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align="left">&#160;</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align="left">[&#160;&#160;&#160; ]&#160; Pre-commencement
      communications pursuant
      to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</div>
    <div style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align="left">&#160;</div>
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    <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in"><strong>Item 1.01&#160;
Entry into a Material
      Definitive Agreement</strong></div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 36pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;
On April 18, 2006 (the
&#8220;Closing Date&#8221;), SAN Holdings, Inc. (the
&#8220;Company&#8221;)
      entered into a Securities Purchase Agreement, (the &#8220;April 2006 Securities
      Purchase Agreement&#8221;), by and among the Company and the purchasers that executed
      a signature page thereto (the &#8220;April 2006 Purchasers&#8221;).&#160; The Securities
      Purchase Agreement is filed as an exhibit to this Report. &#160;Pursuant to the
      April 2006 Securities Purchase Agreement, the Company issued the securities
      described in Item 3.02 to this Report, the description of which is incorporated
      herein by reference, and the Company also granted certain registration rights
      described below.</div>
    <div style="MARGIN: 0in 0pt 12pt; TEXT-INDENT: 36pt">The Company granted
      registration rights to the April 2006 Purchasers with respect to some of the
      securities purchased under the April 2006 Securities Purchase Agreement pursuant
      to the Registration Rights Agreement, dated and effective as of February 28,
      2006 (the &#8220;Registration Rights Agreement&#8221;), among the Company and the April 2006
      Purchasers.&#160; The March 2006 Purchasers (as defined in Item 3.02) are also
      parties to the Registration Rights Agreement.&#160; The Registration Rights
      Agreement was previously filed as an exhibit to the Company&#8217;s Current Report on
      Form 8-K filed with the Securities and Exchange Commission on March 8, 2006
      (the
&#8220;March 2006 Current Report&#8221;).&#160; The revised signature page to the
      Registration Rights Agreement executed by the April 2006 Purchasers is filed
      as
      an exhibit to this Report.</div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 36pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;
On April 19, 2006, the
      Company revised the terms of the credit facility (the
&#8220;Credit Facility&#8221;) that the Company maintains with Sun Solunet, LLC (&#8220;Sun
      Solunet&#8221;), the Company&#8217;s majority shareholder, as assignee of Harris N.A.
      (formerly known as Harris Trust and Savings Bank). The Credit Facility was
      amended pursuant to the Tenth Amendment to the Loan Authorization Agreement
      (the
&#8220;Tenth Amendment&#8221;) between the Company and Sun Solunet, which is filed as an
      exhibit to this Report.&#160; </div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 36pt">The Tenth Amendment
      formalized the agreement with respect to the Credit Facility that had been
      previously made in the termination letter (the &#8220;Credit Support Termination
      Agreement&#8221;) to the letter agreement, dated as of March 31, 2003, as amended on
      November 23, 2005, by and between the Sun Capital Partners II, LP, a Delaware
      limited partnership and the Company, acknowledged and agreed to by Sun
      Solunet.&#160; The Credit Support Termination Agreement was filed as an exhibit
      to the Company&#8217;s Current Report on Form 8-K filed with the Securities and
      Exchange Commission on March 8, 2006.&#160; </div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 36pt">Pursuant to the Tenth
      Amendment, the Company&#8217;s borrowing availability under the Credit Facility was
      reduced from $14 million to $5 million (in principal amount), the Credit
      Facility was modified from a revolving line of credit to a term loan maturing
      on
      March 2, 2009 and the parties expressly agreed that Sun Solunet has no
      additional lending obligation to the Company under the Credit Facility.</div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in"><strong>Item 3.02&#160;
Unregistered Sales
      of Equity Securities</strong></div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 36pt">On the Closing Date, the
      Company offered and sold to the April 2006 Purchasers a total of 10.8 units
      (&#8220;Units&#8221;), each Unit consisting of: </div>
    <div style="MARGIN: 0in 0pt 12pt; TEXT-INDENT: 36pt" align="justify">(a)
&#160;&#160;&#160;&#160;&#160;&#160;
one share
      of the Company&#8217;s newly designated
      convertible series A preferred stock, no par value per share(&#8220;Series A Preferred
      Stock&#8221;) initially convertible into 333,333 shares of the Company&#8217;s common stock,
      no par value per share (&#8220;Common Stock&#8221;); </div>
    <div style="MARGIN: 0in 0pt 12pt; TEXT-INDENT: 36pt" align="justify">(b)
&#160;&#160;&#160;&#160;&#160;&#160;
a warrant
      to purchase 166,667 shares of
      Common Stock exercisable for five years from the Closing Date at an initial
      exercise price of $0.30 per share expiring five years from the Closing Date;
      and</div>
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    <div style="MARGIN: 0in 0pt 12pt; TEXT-INDENT: 0pt" align="justify"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(c)
      &#160;&#160;&#160;&#160;&#160;&#160; a warrant to purchase 166,667 shares of
      Common Stock exercisable for five years from the Closing Date at an initial
      exercise price of $0.50 per share (together with the warrants described in
      clause (b) above, the &#8220;Warrants&#8221;) expiring five years from the Closing
      Date.&#160;&#160; </div>
    <div style="MARGIN: 0in 0in 12pt"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;The
      Units were issued
      pursuant to the April 2006 Securities Purchase Agreement and were offered and
      sold to accredited investors in a private placement transaction exempt from
      registration under the Securities Act of 1933, as amended (the &#8220;1933 Act&#8221;)
      pursuant to Section 4(2) of the 1933 Act, and Regulation D promulgated
      thereunder (the &#8220;Private Placement&#8221;).&#160; The consideration received by the
      Company from the Purchasers for the purchase of the Units on the Closing Date
      was $540,000 cash, less approximately $54,000 in fees and expenses paid to
      the
      placement agent pursuant to an agreement with the Company in connection with
      the
      Private Placement.</div>
    <div style="MARGIN: 0in 0in 12pt"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;The
      sale of Units
      issued on the Closing Date was the second closing in the Private
      Placement.&#160; The initial closing occurred on March 2, 2006 (the &#8220;Initial
      Closing Date&#8221;).&#160; The Units issued on the Initial Closing Date were issued
      pursuant to the Securities Purchase Agreement, dated and effective as of
      February 28, 2006, by and among the Company and the purchasers that executed
      a
      signature page thereto (the &#8220;March 2006 Purchasers&#8221;) as described in the
      Company&#8217;s Annual Report on Form 10-K for the fiscal year ended December 31,
      2005.&#160; </div>
    <div style="MARGIN: 0in 0in 12pt"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;The
      voting powers,
      designation, conversion rights, preferences, limitations, restrictions and
      relative rights of the Series A Preferred Stock and the holders thereof are
      set
      forth in the Articles of Amendment to the Company&#8217;s Second Amended and Restated
      Articles of Incorporation that was previously filed as an exhibit to the
      Company&#8217;s March 2006 Current Report.&#160; The terms of the Warrants, including
      but not limited to their rights and preferences and the exercise features are
      set forth in the form of Warrant included as an exhibit to this Report, and
      are
      substantially similar to the Warrants issued on the Initial Closing Date. </div>
    <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in"><strong>Item 9.01&#160;
Financial Statements
      and Exhibits</strong></div>
    <div style="MARGIN: 0in 0in 12pt"><strong><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(c)&#160;
      Exhibits</strong> The following is a complete list of exhibits filed as part of
      this Report.&#160; Exhibit numbers correspond to the numbers in the exhibit
      table of Item 601 of Regulation S-K.</div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse; mso-table-layout-alt: fixed; mso-padding-alt: 0in 5.4pt 0in 5.4pt">

          <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;">
            <td valign="top" width="15%" bgcolor="transparent" style="border-bottom: medium none;">
              <div style="MARGIN: 0in 0in 6pt; TEXT-ALIGN: center" align="center"><strong>Exhibit
                No.</strong></div>
            </td>
            <td valign="top" width="85%" bgcolor="transparent" style="border-bottom: medium none;">
              <div style="MARGIN: 0in 0in 6pt; TEXT-ALIGN: center" align="center"><strong>Description</strong></div>
            </td>
          </tr>
          <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;">
            <td valign="top" width="15%" bgcolor="transparent">&#160;</td>
            <td valign="top" width="85%" bgcolor="transparent">&#160;</td>
          </tr>
          <tr style="mso-yfti-irow: 1;">
            <td valign="top" width="15%" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 1.2in; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0.3in 0pt 0in; TEXT-ALIGN: right" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">4.01</font></div>
            </td>
            <td valign="top" width="85%" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 391.5pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Designation
                of Series A Preferred Stock (1)</font></div>
            </td>
          </tr>
          <tr style="mso-yfti-irow: 2;">
            <td valign="top" width="15%" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 1.2in; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0.3in 0pt 0in; TEXT-ALIGN: right" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">10.01</font></div>
            </td>
            <td valign="top" width="85%" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 391.5pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Securities
                Purchase Agreement, dated as of March 8, 2006, by and among the Company
                and the purchasers that executed a signature page thereto
                (2)&#160;</font></div>
            </td>
          </tr>
          <tr style="mso-yfti-irow: 3;">
            <td valign="top" width="15%" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 1.2in; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0.3in 0pt 0in; TEXT-ALIGN: right" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">10.02</font></div>
            </td>
            <td valign="top" width="85%" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 391.5pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Registration
                Rights Agreement, dated as of February 28, 2006, by and among the
                Company
                and the purchasers that executed a signature page thereto
                (3)</font></div>
            </td>
          </tr>
          <tr style="mso-yfti-irow: 4;">
            <td valign="top" width="15%" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 1.2in; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0.3in 0pt 0in; TEXT-ALIGN: right" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">10.03</font></div>
            </td>
            <td valign="top" width="85%" bgcolor="transparent" style="border-right: #ece9d8; padding-right: 5.4pt; border-top: #ece9d8; padding-left: 5.4pt; padding-bottom: 0in; border-left: #ece9d8; width: 391.5pt; padding-top: 0in; border-bottom: #ece9d8;">
              <div style="MARGIN: 0in 0in 0pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Form
                of the Company Common Stock Purchase Warrants issued on March 2,
                2006
                (Included in Exhibits D and E of Exhibit 10.01) </font></div>
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              <div style="MARGIN: 0in 0.3in 0pt 0in; TEXT-ALIGN: right" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">10.04</font></div>
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              <div style="MARGIN: 0in 0in 0pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Tenth
                Amendment to the Loan Authorization Agreement between Sun Solunet,
                LLC and
                the Company</font></div>
            </td>
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              <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              <div style="MARGIN: 0in 0in 0pt"><sup>(1)</sup>&#160; Incorporated by
                reference to Exhibit 4.01 to the Company&#8217;s Current Report on Form 8-K
                filed March 8, 2006.</div>
              <div style="MARGIN: 0in 0in 0pt"><sup>(2)</sup> Exhibits A, B, C (except
                for the signature page), F and G to Exhibit 10.01 are incorporated
                by
                reference to the corresponding lettered exhibits in Exhibit 10.01
                to the
                Company&#8217;s Current Report on Form 8-K filed March 8, 2006 and the remainder
                of Exhibit 10.01 is filed herewith.</div>
              <div style="MARGIN: 0in 0in 0pt"><sup>(3)</sup> Incorporated by reference
                to Exhibit 10.02 to the Company&#8217;s Current Report on Form 8-K filed March
                8, 2006 except for the signature page which is included in Exhibit
                C of
                Exhibit 10.01 filed herewith.</div>
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    <div style="MARGIN: 0in 0in 12pt; TEXT-INDENT: 0in; TEXT-ALIGN: center" align="center"><strong>SIGNATURES</strong></div>
    <div style="MARGIN: 0in 0in 12pt"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Pursuant
      to the
      requirements of the Securities Exchange Act of 1934, the Registrant has duly
      caused this Report to be signed on its behalf by the undersigned, hereunto
      duly
      authorized.</div>
    <div style="MARGIN: 0in 0in 12pt 3.5in; TEXT-INDENT: 0in">SAN HOLDINGS,
      INC.</div>
    <div style="MARGIN: 0in 0in 12pt">&#160;</div>
    <div style="MARGIN: 0in 0in 0pt 3.5in; TEXT-INDENT: 0in">By:&#160; <u>/s/ Robert
      C.
      Ogden&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</u></div>
    <div style="MARGIN: 0in 0in 0pt 3.5in; TEXT-INDENT: 0in">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Robert
      C. Ogden, Vice President, </div>
    <div style="MARGIN: 0in 0in 0pt 279pt; TEXT-INDENT: -27pt">&#160;&#160;&#160;&#160;&#160;&#160;
Chief Financial Officer
      and Secretary</div>
    <div style="MARGIN: 0in 0in 12pt 3.5in; TEXT-INDENT: 0in">&#160;</div>
    <div style="MARGIN: 0in 0in 12pt 3.5in; TEXT-INDENT: 0in">Date: April 21,
      2006</div>
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{"company-data": {"conformed-name": "SAN HOLDINGS INC", "cik": "0000799097", "assigned-sic": "3572", "irs-number": "840907969", "state-of-incorporation": "CO", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-16423", "film-number": "06772096"}, "business-address": {"street1": "9800 MT PYRAMID COURT", "street2": "SUITE 130", "city": "ENGLEWOOD", "state": "CO", "zip": "80112", "phone": "3036603933"}, "mail-address": {"street1": "9800 MT PYRAMID COURT", "street2": "SUITE 130", "city": "ENGLEWOOD", "state": "CO", "zip": "80112"}, "former-company": [{"former-conformed-name": "CITADEL ENVIRONMENTAL GROUP INC", "date-changed": "19961129"}, {"former-conformed-name": "CITADEL ASSET MANAGEMENT LTD", "date-changed": "19920703"}]}
UNITED
      STATES
SECURITIES
      AND
      EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM 8‑K
CURRENT
      REPORT
Pursuant
      to
      Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
      Report:  April 18, 2006
SAN
      Holdings, Inc.
(Exact
      name
      of registrant as specified in its charter)
Colorado
0-16423
84-0907969
(State
                or other jurisdiction of incorporation)
(Commission
                File Number)
(IRS
                Employer Identification Number)
9800
      Pyramid Court, Suite 130, Englewood, CO 80112
(Address
      of
      Principal Executive Offices) (Zip Code)
(303)
      660-3933
Registrant's
      telephone number, including area code
None
(Former
      name or former address, if changed since last report)
Check the appropriate
      box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any of
      the
      following provisions:
[    ]  Written communications
      pursuant to Rule
      425 under the Securities Act (17 CFR 230.425)
[    ]  Soliciting material
      pursuant to Rule
      14a-12 under the Exchange Act (17 CFR 240.14a-12)
[    ]  Pre-commencement
      communications pursuant
      to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[    ]  Pre-commencement
      communications pursuant
      to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 
Entry into a Material
      Definitive Agreement
(a)       
On April 18, 2006 (the
"Closing Date"), SAN Holdings, Inc. (the
"Company")
      entered into a Securities Purchase Agreement, (the "April 2006 Securities
      Purchase Agreement"), by and among the Company and the purchasers that executed
      a signature page thereto (the "April 2006 Purchasers").  The Securities
      Purchase Agreement is filed as an exhibit to this Report.  Pursuant to the
      April 2006 Securities Purchase Agreement, the Company issued the securities
      described in Item 3.02 to this Report, the description of which is incorporated
      herein by reference, and the Company also granted certain registration rights
      described below.
The Company granted
      registration rights to the April 2006 Purchasers with respect to some of the
      securities purchased under the April 2006 Securities Purchase Agreement pursuant
      to the Registration Rights Agreement, dated and effective as of February 28,
      2006 (the "Registration Rights Agreement"), among the Company and the April 2006
      Purchasers.  The March 2006 Purchasers (as defined in Item 3.02) are also
      parties to the Registration Rights Agreement.  The Registration Rights
      Agreement was previously filed as an exhibit to the Company's Current Report on
      Form 8-K filed with the Securities and Exchange Commission on March 8, 2006
      (the
"March 2006 Current Report").  The revised signature page to the
      Registration Rights Agreement executed by the April 2006 Purchasers is filed
      as
      an exhibit to this Report.
(b)       
On April 19, 2006, the
      Company revised the terms of the credit facility (the
"Credit Facility") that the Company maintains with Sun Solunet, LLC ("Sun
      Solunet"), the Company's majority shareholder, as assignee of Harris N.A.
      (formerly known as Harris Trust and Savings Bank). The Credit Facility was
      amended pursuant to the Tenth Amendment to the Loan Authorization Agreement
      (the
"Tenth Amendment") between the Company and Sun Solunet, which is filed as an
      exhibit to this Report.
The Tenth Amendment
      formalized the agreement with respect to the Credit Facility that had been
      previously made in the termination letter (the "Credit Support Termination
      Agreement") to the letter agreement, dated as of March 31, 2003, as amended on
      November 23, 2005, by and between the Sun Capital Partners II, LP, a Delaware
      limited partnership and the Company, acknowledged and agreed to by Sun
      Solunet.  The Credit Support Termination Agreement was filed as an exhibit
      to the Company's Current Report on Form 8-K filed with the Securities and
      Exchange Commission on March 8, 2006.
Pursuant to the Tenth
      Amendment, the Company's borrowing availability under the Credit Facility was
      reduced from $14 million to $5 million (in principal amount), the Credit
      Facility was modified from a revolving line of credit to a term loan maturing
      on
      March 2, 2009 and the parties expressly agreed that Sun Solunet has no
      additional lending obligation to the Company under the Credit Facility.
Item 3.02 
Unregistered Sales
      of Equity Securities
On the Closing Date, the
      Company offered and sold to the April 2006 Purchasers a total of 10.8 units
      ("Units"), each Unit consisting of:
(a)
      
one share
      of the Company's newly designated
      convertible series A preferred stock, no par value per share("Series A Preferred
      Stock") initially convertible into 333,333 shares of the Company's common stock,
      no par value per share ("Common Stock");
(b)
      
a warrant
      to purchase 166,667 shares of
      Common Stock exercisable for five years from the Closing Date at an initial
      exercise price of $0.30 per share expiring five years from the Closing Date;
      and
2
(c)
             a warrant to purchase 166,667 shares of
      Common Stock exercisable for five years from the Closing Date at an initial
      exercise price of $0.50 per share (together with the warrants described in
      clause (b) above, the "Warrants") expiring five years from the Closing
      Date.
The
      Units were issued
      pursuant to the April 2006 Securities Purchase Agreement and were offered and
      sold to accredited investors in a private placement transaction exempt from
      registration under the Securities Act of 1933, as amended (the "1933 Act")
      pursuant to Section 4(2) of the 1933 Act, and Regulation D promulgated
      thereunder (the "Private Placement").  The consideration received by the
      Company from the Purchasers for the purchase of the Units on the Closing Date
      was $540,000 cash, less approximately $54,000 in fees and expenses paid to
      the
      placement agent pursuant to an agreement with the Company in connection with
      the
      Private Placement.
The
      sale of Units
      issued on the Closing Date was the second closing in the Private
      Placement.  The initial closing occurred on March 2, 2006 (the "Initial
      Closing Date").  The Units issued on the Initial Closing Date were issued
      pursuant to the Securities Purchase Agreement, dated and effective as of
      February 28, 2006, by and among the Company and the purchasers that executed
      a
      signature page thereto (the "March 2006 Purchasers") as described in the
      Company's Annual Report on Form 10-K for the fiscal year ended December 31,
      2005.
The
      voting powers,
      designation, conversion rights, preferences, limitations, restrictions and
      relative rights of the Series A Preferred Stock and the holders thereof are
      set
      forth in the Articles of Amendment to the Company's Second Amended and Restated
      Articles of Incorporation that was previously filed as an exhibit to the
      Company's March 2006 Current Report.  The terms of the Warrants, including
      but not limited to their rights and preferences and the exercise features are
      set forth in the form of Warrant included as an exhibit to this Report, and
      are
      substantially similar to the Warrants issued on the Initial Closing Date.
Item 9.01 
Financial Statements
      and Exhibits
(c) 
      Exhibits
The following is a complete list of exhibits filed as part of
      this Report.  Exhibit numbers correspond to the numbers in the exhibit
      table of Item 601 of Regulation S-K.
Exhibit
                No.
Description
4.01
Designation
                of Series A Preferred Stock (1)
10.01
Securities
                Purchase Agreement, dated as of March 8, 2006, by and among the Company
                and the purchasers that executed a signature page thereto
                (2)
10.02
Registration
                Rights Agreement, dated as of February 28, 2006, by and among the
                Company
                and the purchasers that executed a signature page thereto
                (3)
10.03
Form
                of the Company Common Stock Purchase Warrants issued on March 2,
                2006
                (Included in Exhibits D and E of Exhibit 10.01)
10.04
Tenth
                Amendment to the Loan Authorization Agreement between Sun Solunet,
                LLC and
                the Company
(1)
Incorporated by
                reference to Exhibit 4.01 to the Company's Current Report on Form 8-K
                filed March 8, 2006.
(2)
Exhibits A, B, C (except
                for the signature page), F and G to Exhibit 10.01 are incorporated
                by
                reference to the corresponding lettered exhibits in Exhibit 10.01
                to the
                Company's Current Report on Form 8-K filed March 8, 2006 and the remainder
                of Exhibit 10.01 is filed herewith.
(3)
Incorporated by reference
                to Exhibit 10.02 to the Company's Current Report on Form 8-K filed March
                8, 2006 except for the signature page which is included in Exhibit
                C of
                Exhibit 10.01 filed herewith.
3
SIGNATURES
Pursuant
      to the
      requirements of the Securities Exchange Act of 1934, the Registrant has duly
      caused this Report to be signed on its behalf by the undersigned, hereunto
      duly
      authorized.
SAN HOLDINGS,
      INC.
By:
/s/ Robert
      C.
      Ogden
Robert
      C. Ogden, Vice President,
Chief Financial Officer
      and Secretary
Date: April 21,
      2006
4