PROMISSORY NOTE

Exhibit 10.2

PROMISSORY NOTE

FOR VALUE RECEIVED , on the Maturity Date (as defined below) the undersigned, Ballistic Recovery Systems, Inc., a Minnesota corporation (“Borrower”) hereby promises to pay to the order of Anchor Bank Saint Paul, N.A. (the “Lender”) the sum of Eight Hundred Twenty Thousand and no/100ths Dollars (U.S. $820,000.00) including all Advances, interest, fees, points, expenses, and other costs, or, if less, the aggregate unpaid principal amount of all Advances made by Lender to Borrower pursuant to that certain Loan Agreement, of even date herewith, between Borrower and Lender (the Loan Agreement, as amended, modified, supplemented, or restated from time to time referred to herein as the “Loan Agreement”), along with all interest, fees, points, expenses, and other costs.  All capitalized terms not otherwise defined herein shall have the meanings and definitions set forth in the Loan Agreement.  Except as provided herein, subject to the discretion of Lender, the aggregate balance of all Advances, costs, expenses, fees, points, and accrued interest outstanding on this Note shall not exceed Eight Hundred Twenty Thousand and no/100ths Dollars (U.S. $820,000.00).

Borrower promises to pay interest (applying the ratio of the annual interest rate over a year of 360 days, times the outstanding principal balance, times the actual number of days the principal balance is outstanding) on all amounts due and owing hereunder and pursuant to the Loan Agreement from the date hereof until all such amounts due and owing are paid in full.  Each Advance by Lender under the Loan Agreement shall bear interest, from the date of such Advance until the Loan is paid in full, at the variable rate per annum (the “Interest Rate”) equal to the “Prime Rate” of interest as published each business day in the money rates section of the Wall Street Journal (the “Index”).  The Interest Rate shall increase or decrease in the same manner and effective on the same date as any increase or decrease in the Index.  If the Index ceases to be published in the Wall Street Journal , Lender may designate a substitute index after notice to Borrower.  The Interest Rate as of the date of this Note is eight and one-quarter percent (8.25 % ).

All sums due under this Note shall be due and payable according to the following terms:

1.                                        Borrower shall make, to Lender, monthly payments of interest only, with the first such payment shall be due and payable on September 1, 2007, and subsequent payments shall be due and payable on the first (1s