PROMISSORY NOTE

                                                          Scottsdale, Arizona
   $
   -----------------------                                --------------------
FOR VALUE RECEIVED, the undersigned, ALANCO TECHNOLOGIES, INC., an Arizona
corporation (hereinafter the "Maker"), promises and agrees to pay to the order
of ------------------------------------------------("Holder"), at Scottsdale,
Arizona, or at such other place as the Holder hereof may designate, the
principal sum of ----------------------------------------- and No/100 Dollars
($-----------------), together with interest thereon at the rate of twelve (12%)
percent per annum, payable in full on or before one year from the date hereof.
In addition, Maker has paid to Holder an origination fee of two (2%) percent of
the principal amount of this note upon the execution hereof.

All sums payable hereunder shall be paid in lawful money of the United States of
America. This Note may be prepaid, in whole or in part, at any time and from
time to time, without penalty. Payments shall be applied first to accrued
interest and then to principal.

If payment provided for herein is not paid when due, such delinquent payment
shall bear interest at a rate (the "Default Rate") which shall be fifteen (15%)
per annum, such interest being due from the due date of the delinquent payment
until the date of receipt by Holder of the delinquent payment.

In the event Holder utilizes the services of any attorney in attempting to
collect the amounts due hereunder or to enforce the terms hereof or if any
holder hereof becomes party plaintiff or defendant in any legal proceeding in
relation to this Note or for the recovery or protection of the indebtedness
evidenced hereby, Maker agrees to pay, in addition to the principal and interest
due hereunder, all reasonable costs and a reasonable amount as attorneys' fees,
whether or not suit is brought, and shall further pay all reasonable costs,
expenses and attorneys' fees incurred after the filing by or against the Maker
of any proceeding under any Chapter of the Bankruptcy Code, or any similar
federal or state statute. This Note shall be governed by, construed and
interpreted in accordance with the laws of the state of Arizona.

All endorsers, guarantors, and all other persons liable or to become liable on
this Note, agree that, without notice to or consent from any of them and without
affecting their obligations hereunder, (a) this Note may from time to time be
extended or renewed; (b) any of the provisions of this Note may be waived or any
departure herefrom consented to or any other forbearance or indulgence exercised
with respect thereto; (c) any collateral now or hereafter securing this Note may
be exchanged, substituted, realized upon, released, compromised, extended or
otherwise dealt with or disposed of.

The Maker and all guarantors and endorsers hereof and all others who may become
liable for all or any part of these obligations hereby severally waive demand,
presentment for payment, protest and demand, notice of protest, demand and
dishonor, and nonpayment of this Note and all other notice and specifically
agree that the maturity of this Note or any payment hereunder may be extended
from time to time without in any way affecting the liability of Maker or any
endorses or guarantors.

ALANCO TECHNOLOGIES, INC.
an Arizona corporation

By:
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Its:
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