EXHIBIT
        10.01

      

        SAN
          HOLDINGS, INC.

        FIRST
          AMENDMENT TO

        HARRIS
          LOAN AUTHORIZATION AGREEMENT

      

       

      Harris
        N.A. 

      Chicago,
        Illinois

       

      Ladies
        and Gentlemen:

       

      Reference
        is hereby made to that certain Harris Loan Authorization Agreement dated
        as of
        October 27, 2006 (the Harris Loan Authorization Agreement, as the same may
        be
        amended from time to time, being referred to herein as the “Loan
        Agreement”),
        between the undersigned, SAN Holdings, Inc., a Colorado corporation (the
        “Borrower”),
        and
        Harris N.A. (the “Bank”).
        All
        capitalized terms used herein without definition shall have the same meanings
        herein as such terms have in the Loan Agreement.

       

      The
        Borrower has requested that the Bank, among other things, increase the available
        maximum amount of credit available to the Borrower under the Loan Agreement,
        and
        the Bank is willing to do so under the terms and conditions set forth in
        this
        agreement (herein, the “Amendment”).
        

       

      
        
          SECTION
            1.     AMENDMENT.

           

        

      

            Subject
        to the satisfaction of
        all of the conditions precedent set forth in Section 3 below, the Loan
        Agreement shall be and hereby is amended as follows:

       

      1.1.    The
        Loan
        Agreement shall be amended by deleting the amount of “$1,500,000”
        appearing
        throughout the document and substituting therefor the amount “$3,000,000.”

       

      1.2.    The
        Loan
        Agreement shall be amended by inserting the following paragraph therein as
        Section 14:

       

      14.    Security.
        The
        Loans (both for principal and interest) and the Company’s other obligations
        under that certain Secured Demand Note dated as of March 13, 2007
        (the“Secured
        Note”)
        shall
        be secured by certain property of Sun Capital Partners II, LP (“Sun II”)
        pursuant to that certain Cash Collateral Security Agreement, dated as of
        March
        13, 2007 (as the same may be amended, modified, restated or supplemented
        from
        time to time, being herein referred to collectively as the “Security
        Agreement”),
        and
        Sun II shall at all times comply with the terms and conditions of the Security
        Agreement. The Bank shall have the right to call for additional security
        from
        Sun II satisfactory to the Bank should the value of the collateral decline.


       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        SECTION
          2.     SECURED
          NOTE.

      

       

      In
        addition to that certain Demand Note payable to the order of the Bank dated
        as
        of October 27, 2006 in the principal amount of $1,500,000 (the “Previous
        Note”),
        the
        Borrower shall execute and deliver to the Bank a new secured demand note
        in the
        amount of $1,500,000, dated as of the date of its issuance and otherwise
        in the
        form of Exhibit A attached hereto (the “Secured
        Note”)
        which
        shall be given in addition to the Bank’s Previous Note and, together with the
        Previous Note, shall evidence the loans outstanding to the Bank. All references
        in the Loan Agreement to the “Note”
        shall
        be
        deemed references to the Previous Note together with the Secured Note,
provided
        that
        (i) the Guaranty from Sun Capital Partners II, LP only guarantees
        obligations arising under the Previous Note and (ii) the Cash Collateral
        Security Agreement from Sun Capital Partners II, LP only secures obligations
        arising under the Secured Note.

       

      
        SECTION
          3.  CONDITIONS
          PRECEDENT.

      

       

          3.1.    The
        Borrower and the Bank shall have executed and delivered this
        Amendment.

       

          3.2.    The
        Borrower shall have executed and delivered to the Bank the New
        Note.

       

          3.3.    The
        Bank
        shall have received copies (executed or certified, as may be appropriate)
        of all
        legal documents or proceedings taken in connection with the execution and
        delivery of this Amendment to the extent the Bank or its counsel may reasonably
        request.

       

          3.4.    Legal
        matters incident to the execution and delivery of this Amendment shall be
        satisfactory to the Bank and its counsel.

       

          3.5.    Sun
        Capital Partners II, LP shall have executed and delivered to the Bank its
        consent to this Amendment in the form set forth below and that certain Cash
        Collateral Security Agreement dated as of even date herewith.

       

      
        SECTION
          4.  REPRESENTATIONS.

         

      

      In
        order
        to induce the Bank to execute and deliver this Amendment, the Borrower hereby
        represents to the Bank that as of the date hereof the representations and
        warranties set forth in the Loan Agreement are and shall be and remain true
        and
        correct and the Borrower is in compliance with the terms and conditions of
        the
        Loan Agreement.

       

      
        SECTION
          5.  MISCELLANEOUS.

         

      

          5.1.    Except
        as
        specifically amended herein, the Loan Agreement shall continue in full force
        and
        effect in accordance with its original terms. Reference to this specific
        Amendment need not be made in the Loan Agreement, the Note, or any other
        instrument or document executed in connection therewith, or in any certificate,
        letter or communication issued or made pursuant to or with respect to the
        Loan
        Agreement, any reference in any of such items to the Loan Agreement being
        sufficient to refer to the Loan Agreement as amended hereby.

       

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

       

          5.2.    This
        Amendment may be executed in any number of counterparts, and by the different
        parties on different counterpart signature pages, all of which taken together
        shall constitute one and the same agreement. Any of the parties hereto may
        execute this Amendment by signing any such counterpart and each of such
        counterparts shall for all purposes be deemed to be an original. This Amendment
        shall be governed by the internal laws of the State of Illinois.

       

      
        [SIGNATURE
          PAGE TO FOLLOW]

      

       

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      
 

      This
        First Amendment to Harris Loan Authorization Agreement is entered into as
        of
        this 13th day of March, 2007.

       

      
        	 	 	 
	 	SAN
                HOLDINGS,
                INC.
	 
 	 
 	 
 
	 	By  	/s/ Robert
                C.
                Ogden
	 	
                
Name 
Robert
                C. Ogden
	 	Title   
                CFO and Secretary


      

       

            Accepted
        and agreed
        to.

      


      
        	 	 	 
	 	HARRIS
                N.A
	 
 	 
 	 
 
	 	By  	/s/ Denise
                Sidelow
	 	
                
Name
                Denise Sidelow
	 	Title  
                Vice President


      

    

     

     

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
 

    
      GUARANTOR’S
        ACKNOWLEDGEMENT AND CONSENT

       

    

    The
      undersigned, Sun Capital Partners II, LP, heretofore executed and delivered
      to
      the Bank a Guaranty dated October 27, 2006 (as may be amended from time to
      time,
      the “Guaranty”).
      The
      undersigned hereby consents to the Amendment to the Loan Agreement as set forth
      above and confirms that the Guaranty and all of the undersigned’s obligations
      thereunder remain in full force and effect. The undersigned further agrees
      that
      the consent of the undersigned to any further amendments to the Loan Agreement
      shall not be required as a result of this consent having been obtained, except
      to the extent, if any, required by the Guaranty.

    
      


      
        	 	 	 
	 	
                SUN
                  CAPITAL PARTNERS II, LP

              
	 
 	 
 	 
 
	 	By:  	Sun
                Capital Advisors II, LP
	 	Its: 	General Partner


        

          
            
              	 	By:  	Sun
                      Capital
                      Partners, LLC
	 	Its: 	General
                      Partner


            

            
              
                
                  
                    	 	 	 
	 	By:  	/s/ Mark
                            J.
                            Leder
	 	
                            
Name:
                            Mark J. Leder
	 	Its:     
                            CO-CEO


                  

                

                 

              

            

          

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

    
 

    EXHIBIT
      A

    


    SECURED
      DEMAND NOTE

     

    

      
        	
                $1,500,000

              	
                March
                  13, 2007

              


      

    

     

    ON
      DEMAND,
      for
      value received, the undersigned, SAN
      HOLDINGS, INC.,
      a
      Colorado corporation, promises to pay to the order of HARRIS
      N.A.
      (the
“Bank”)
      at its
      offices at 111 West Monroe Street, Chicago, Illinois, the principal sum of
      One
      Million Five Hundred Thousand Dollars ($1,500,000) or, if less, the amount
      outstanding hereunder, together with interest payable at the times and at the
      rates and in the manner set forth in the Harris Loan Authorization Agreement
      referred to below.

     

    This
      Note
      evidences part of the borrowings by the undersigned under that certain Harris
      Loan Authorization Agreement dated as of October 27, 2006, between the
      undersigned and the Bank, as the same may be amended from time to time; and
      this
      Note and the holder hereof are entitled to all the benefits provided for under
      the Harris Loan Authorization Agreement, to which reference is hereby made
      for a
      statement thereof, excluding, however, the benefits of the Guaranty from Sun
      Capital Partners II LP. The undersigned hereby waives presentment and
      notice of dishonor. The undersigned agrees to pay to the holder hereof all
      court
      costs and other reasonable expenses, legal or otherwise, incurred or paid by
      such holder in connection with the collection of this Note. It is agreed that
      this Note and the rights and remedies of the holder hereof shall be construed
      in
      accordance with and governed by the laws of the State of Illinois.

     

    The
      Loans
      (both for principal and interest) and the undersigned’s other obligations under
      this Note shall be secured by certain property of Sun Capital Partners II,
      LP
      pursuant to that certain Cash Collateral Security Agreement, dated of even
      date
      herewith (as the same may be amended, modified, restated or supplemented from
      time to time, being herein referred to collectively as the “Security
      Agreement”),
      and
      Sun Capital Partners II, LP shall at all times comply with the terms and
      conditions of the Security Agreement.

     

    
      	 	 	 
	 	
              SAN
                HOLDINGS, INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name: 
	 	Its