EXHIBIT 99.1



                                 PROMISSORY NOTE
                                -----------------
$100,000.00
                                                            Scottsdale , Arizona
                                                                March ____, 2010

         FOR VALUE RECEIVED, the undersigned, Alanco Technologies, Inc., an
Arizona corporation ("Maker"), promises to pay to the order of Robert R.
Kauffman ("Holder"), in lawful money of the United States of America, the
principal sum of One Hundred Thousand and no/100ths Dollars ($100,000.00),
together with interest thereon as described below, as follows:

         A.       Interest shall accrue upon the outstanding principal balance
                  of this Note from the date hereof until all principal is paid
                  in full at the rate of twelve (12%) percent per annum, and be
                  payable on the last day of each month hereafter, commencing
                  March 31, 2010

         B.       All principal and accrued unpaid interest shall be due in full
                  and paid within thirty (30) days following written demand for
                  such payment by the Holder (the "Maturity Date").

         If payment at the Maturity Date is not paid when due, the entire
outstanding principal balance shall bear interest at a rate (the "Default Rate")
which shall be five (5%) percent per annum in excess of the regular rate of
interest shown above, such interest being due from the due date of the
delinquent payment until the date of receipt by Holder of the delinquent
payment.

         Maker may prepay this Note, in part or in full, without a prepayment
penalty. Sums so prepaid may not be re-borrowed.

         Unless otherwise agreed to, in writing, or otherwise required by
applicable law, payments will be applied first to accrued, unpaid interest, then
to unpaid collection costs, late charges and other charges, and any remaining
amount to principal.

         It is agreed that time is of the essence hereof. The Maker waives all
applicable diligence, presentment, protest and demand, and also notice of
protest, of demand, of nonpayment, and of maturity

         The Maker agrees to pay all costs of collection, including reasonable
attorneys' fees and all costs of suit, in case the unpaid principal sum of this
Note, or any payment thereon, is not paid when due, or in case it becomes
necessary to protect the security for the indebtedness evidenced hereby, or for
the foreclosure by Holder of any security for this Note, or in the event Holder
is made a party to any litigation because of the existence of the indebtedness
evidenced by this Note, whether suit be brought or not, and whether through
courts of original jurisdiction, as well as in courts of appellate jurisdiction,
or through a Bankruptcy Court or other legal proceedings.

         Whenever used herein, the words "Maker" and "Holder" shall be deemed to
include their respective heirs, personal representatives, and permitted
successors and assigns.

         This Note shall be governed by and construed in accordance with the
laws of the State of Arizona.



         Events of Default. Each of the following will constitute an event of
default ("Event of Default") under this Note:

         Maker's failure to pay interest when due and all principal and accrued
         unpaid interest due on the Maturity Date.

         Maker's failure in the performance of any of the terms, agreements,
         covenants or conditions contained in this Note, which failure shall not
         have been cured within any applicable grace period.

         Maker's (i) assignment for the benefit of its creditors, or (ii)
         application for, consent to or acquiescence in, the appointment of a
         trustee, receiver or other custodian for Maker, the property of the
         Maker or any part thereof, or in the absence of any application,
         consent or acquiescence, the appointment of a trustee, receiver or
         other custodian for Maker or substantial part of the property of Maker,
         which appointment is not discharged within forty-five (45) days.

         The commencement of any case under Title 11 of the Untied States Code
         or any other bankruptcy, reorganization, receivership, custodianship,
         or similar proceeding under any state of federal law by or against
         Maker, with respect to any such case or proceeding that is involuntary,
         such case or proceeding is not dismissed within sixty (60) days of the
         filling thereof.

         The termination or dissolution of Maker.

         Preference Payments. Maker agrees that, to the extent Maker makes any
payment to Holder in connection with the indebtedness evidenced by this Note,
and all or any part of such payment is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid by Holder or paid
over to a trustee, receiver or any other entity, whether under any bankruptcy
act or otherwise (a "Preferential Payment"), then the indebtedness of Maker and
any other party liable under this Note shall continue or shall be reinstated, as
the case may be, and the obligation underlying such Preferential Payment shall
be revived and continue in full force and effect as if no Preferential Payment
had been made.

         IN WITNESS WHEREOF, Maker has executed this Note as of the date first
above written.


ALANCO TECHNOLOGIES, INC.
an Arizona corporation


By: _____________________________
    John A. Carlson
    Chief Financial Officer