SETTLEMENT AGREEMENT AND MUTUAL RELEASES

     This  Settlement  Agreement and Mutual  Releases (the  "Agreement") is made
effective  as of March  12,  2001 by and  between  Deutsche  Financial  Services
Corporation ("DFS") and Aura Systems,  Inc. ("Aura") with reference to the facts
set forth below.

                                    RECITALS:

     A. On or about  April 1, 1999,  DFS filed Civil  Action No. CV  99-3551-GHK
(BQRX) (the "Civil  Action")  against Aura in the United States  District Court,
Central  District of  California,  by which it alleged that Aura was indebted to
DFS at the time of the filing of the complaint in the sum of  $10,986,957.70  by
reason  of  Aura's  guarantee  of  indebtednesses  owed to DFS by  NewCom,  Inc.
("NewCom").  DFS asserts that the principal  amount of the  indebtedness at this
time is in excess of $8,000,000.00.

     B. Aura responded to the NewCom  complaint,  denying that any  indebtedness
whatsoever is owed by Aura to DFS.

     C.  The  Civil  Action  is now  pending  before  the  American  Arbitration
Association, Los Angeles, California office bearing Case No. 72 Y 150 00709 99.

     D. DFS and Aura,  and each of them,  now desire to settle and resolve  once
and for all each and every  dispute  between  and among them  including  but not
limited to the Civil Action,  and for that reason enter into this Agreement upon
the following terms and conditions.

SECTION 1.  Consideration.
            -------------

     1. On or before the  expiration of the thirtieth  (30th) day after the date
of execution  of this  Agreement,  Aura shall pay to DFS the sum of  $250,000.00
cash and  certificates  evidencing  10,000,000  shares  of  stock  in Aura  (the
"Shares").

     2. On August 1, 2001, Aura shall pay to DFS the sum of $50,000.00 cash.

     3. On September 3, 2001, Aura shall pay to DFS the sum of $50,000.00 cash.

     4. On or  before  June 1,  2001,  Aura  shall  file with the  Securities  &
Exchange  Commission a Registration  Statement  under the Securities Act of 1933
(the "Act")  whereby Aura shall seek to register  the Shares (the  "Registration
Statement") and shall use its best efforts to cause the  Registration  Statement
to become and continue to remain effective.

     a.   This Registration  Statement shall envision the registration of Shares
          for resale by DFS.

     b.   Aura will utilize its best efforts to keep current and  supplement  as
          needed  any  information  or  filings  necessary  for the two (2) year
          period  subsequent to the execution of this Agreement in order to make
          it possible for DFS to sell its Shares during this time period.

     c.   Aura will furnish copies of any prospectus  they maintain that DFS may
          request.

     d.   Aura does expressly covenant to pay any and all expenses incurred as a
          result of the filing or  maintaining  any  Registration  Statements or
          other obligations necessary for DFS to be able to sell its Shares, but
          not selling expenses or commissions which DFS may incur.

     e.   (1) To the  extent  permitted  by law,  Aura will  indemnify  and hold
          harmless  DFS,  its  officers,   directors   and   shareholders,   any
          underwriter  (as defined in the Act) for DFS and each person,  if any,
          who  controls  DFS or any Aura  underwriter  within the meaning of the
          Act, as amended,  against any losses, claims,  damages, or liabilities
          (joint or several) to which they may become subject under the Act, any
          federal  securities law, or any state  securities law, insofar as such
          losses, claims, damages, or liabilities (or actions in respect hereof)
          arise  out of or are  based  upon  any  of the  following  statements,
          omissions or violations  (collectively a "Violation"):  (i) any untrue
          statement or alleged untrue  statement of a material fact contained in
          such Registration  Statement,  including any preliminary prospectus or
          final  prospectus  contained  therein or any amendments or supplements
          thereto,  (ii) the  omission or alleged  omission  to state  therein a
          material fact required to be stated therein,  or necessary to make the
          statements  therein  not  misleading,  or  (iii)  with  regard  to the
          Registration   Statement  or  any  preliminary  or  final   prospectus
          contained  therein,  any violation or alleged violation by Aura of the
          Act, any federal  securities  law, or any state  securities law or any
          rule or regulation  promulgated  under the Act or any state securities
          law;  and  Aura  will  pay  to  DFS,  its   officers,   directors  and
          shareholders,  any legal or other expenses reasonably incurred by them
          in connection with  investigating  or defending any such loss,  claim,
          damage,  liability, or action;  provided,  however, that the indemnity
          agreement  contained in this subsection (a) shall not apply to amounts
          paid in  settlement of any such loss,  claim,  damage,  liability,  or
          action if such  settlement  is  effected  without  the consent of Aura
          (which consent shall not be unreasonably withheld),  nor shall Aura be
          liable in any such case for any such loss, claim,  damage,  liability,
          or  action to the  extent  that it  arises  out of or is based  upon a
          Violation which occurs in reliance upon and in conformity with written
          information  furnished  expressly  for  use in  connection  with  such
          registration   by  DFS,   its   officers,   directors,   shareholders,
          underwriter  or  controlling   persons.  (2)  If  the  indemnification
          provided  for in  this  Section  1 is held  by a  court  of  competent
          jurisdiction to be unavailable to an indemnified party with respect to
          any loss,  liability,  claim,  damage, or expense referred to therein,
          then the indemnifying  party, in lieu of indemnifying such indemnified
          party  hereunder,  shall  contribute  to the amount paid or payable by
          such  indemnified  party as a result of such loss,  liability,  claim,
          damage, or expense in such proportion as is appropriate to reflect the
          relative  fault of the  indemnifying  party on the one hand and of the
          indemnified  party on the other in connection  with the  statements or
          omissions that resulted in such loss,  liability,  claim,  damage,  or
          expense as well as any other relevant  equitable  considerations.  The
          relative fault of the indemnifying  party and of the indemnified party
          shall be determined  by reference to, among other things,  whether the
          untrue or alleged untrue  statement of a material fact or the omission
          to state a  material  fact  relates  to  information  supplied  by the
          indemnifying  party  or by the  indemnified  party  and  the  parties'
          relative intent, knowledge, access to information,  and opportunity to
          correct or prevent such statement or omission.

     f.   Aura covenants to immediately notify DFS at any time when a prospectus
          relating  to the  resale  of the  Shares  by  DFS  is  required  to be
          delivered  under the Act of the  happening of any event as a result of
          which the prospectus included in such registration  statement, as then
          in effect, includes an untrue statement of a material fact or omits to
          state a material  fact  required to be stated  therein or necessary to
          make  the  statements  therein  not  misleading  in the  light  of the
          circumstances then existing.

     g.   Aura agrees to qualify and or register in those states DFS may request
          in order to sell its Shares.

     h.   Aura will  provide  any  requested  information  or legal  opinion  of
          counsel as may be requested by any underwriter or broker of a DFS sale
          of Shares, at its expense.

SECTION 2.         Sale Of Shares.

     (a) DFS shall have no right  whatsoever to in any way dispose of (including
without limitation by sale,  encumbrance,  transfer or other) the Shares, except
by sale on the public  market as set forth below or by private  placement of the
Shares,  subject to all restrictions and requirements  stated in this Agreement.
DFS' sale of the Shares shall be limited, as follows:

     (i)  DFS shall sell no Shares  whatsoever for a period of 120 days from the
          date of the execution of this Agreement.

     (ii) At no time shall more than 50,000 Shares be sold by any party,  or any
          combination  of  parties  thereof,  on any given  business  day on the
          public market without the express written consent of Aura. Any private
          sale  transaction  shall  include  such  terms  and  provisions  as to
          maintain compliance with this section.

     (iii)DFS shall not sell more than  5,000,000  Shares on the  public  market
          during the period of 365 days  commencing on the date of the execution
          of this Agreement.

     (iv) DFS shall not sell more than  5,000,000  Shares on the  public  market
          during the period  commencing  on the 366th day and  concluding on the
          730th day after the date of execution of this Agreement.

     (v)  DFS' sale of the Shares through one or more private  placements  shall
          not be subject to any of the  restrictions  called for in this Section
          2., other than any regulatory  restriction that may apply. Any private
          sale purchaser from DFS or from another  private sale purchaser  shall
          be subject to the public and private sale  restrictions and provisions
          agreed  to in this  Section  2 and  the  balance  of  this  Agreement,
          including  without  limitation,  the right of first refusal granted to
          Aura as described herein,  the limitation on the sale of Shares on the
          public market and the Notice  requirements  stated in this  Agreement.
          DFS  shall  provide  Aura  with a minimum  of ten (10)  business  days
          written Notice of DFS' intent to transfer all or part of the Shares in
          any private  placement.  During that ten (10) day notice period,  Aura
          shall have a right of first refusal to purchase the Shares on the same
          terms provided for in the private placement.  The Notice to Aura shall
          contain all terms of the private placement and include a copy thereof.
          Aura shall  announce  its  intention  to  exercise  its right of first
          refusal by providing written Notice to DFS on or before the expiration
          of the fifth  (5th) day after its  receipt of the DFS  Notice.  Aura's
          failure to so do shall  constitute a waiver of its first refusal right
          with regard to that private placement for which Notice was given.

     (b) On  Tuesday  of each week  where  DFS  sells  any of its  Shares in the
previous week, it will account to Aura in writing,  which writing shall identify
the date of each sale,  the number of Shares sold in each sale  transaction  and
the net sale proceeds paid or to be paid to DFS for each sale transaction.

SECTION 3.  Option To Purchase.
            ------------------

     During the period of 365 days  commencing  on the date of  execution of the
Agreement,   Aura  (or  its  designee)  shall  have  the  right,   but  not  the
responsibility,  to purchase  the  remaining  shares held by DFS on the date and
time of delivery of notice to DFS of Aura's  intention to so do, which  purchase
must be  consummated by the payment by Aura to DFS in cash of the purchase price
on or before the  thirtieth  business  day after  delivery  of the  notice.  The
purchase price for the remaining  shares shall be that sum which,  when added to
the net sale proceeds  theretofore received or to be received by DFS on its sale
of Aura Shares, equals $10,000,000.  Commencing on the 366th day after execution
of this Agreement,  Aura shall have the right,  but not the  responsibility,  to
purchase  the  remaining  Shares held by DFS on the date and time of delivery of
notice  to DFS,  for  that  sum  which,  when  added  to the net  sale  proceeds
theretofore received or to be received by DFS on its sale of Aura Shares, equals
$12,000,000.  The purchase must be  consummated by the payment by Aura to DFS in
cash of the  purchase  price on or  before  the  thirtieth  business  day  after
delivery of the notice.

SECTION 4.  Disposition Of NewCom Collateral.

     (a) DFS claims ownership or a perfected  security interest in virtually all
of the  assets of NewCom as more  specifically  identified  in those  agreements
between DFS and NewCom entitled Business Financing  Agreement dated December 23,
1996,  Agreement  For  Wholesale  Financing  dated April 16,  1997,  Addendum to
Business Financing  Agreement and Agreement For Wholesale  Financing dated April
16,  1997,  and  Amendment  To Business  Financing  Agreement  dated May 1, 1997
(collectively the "Security Documents").  From the date of the execution of this
Agreement  forward,  any and  all  monies  received  by DFS as a  result  of its
ownership  of or  security  interest  in the assets of NewCom less the costs and
expenses  incurred by DFS from the date of  execution  of this  Agreement in the
recovery of such monies, shall be held in trust by DFS for Aura, to be delivered
to Aura along with an assignment of the DFS security interest on the occasion of
the following:

     (i)  The bid price for Aura stock shall have  reached  $.80 per share on 10
          business days during the period of 365 days from the date of execution
          of the  Agreement;  or on and  after  the  366th day after the date of
          execution  of the  Agreement,  the bid price for Aura stock shall have
          reached $1.00 per share on 10 business days,

     (ii) In the event Aura desires to prosecute or pursue a Newcom claim, asset
          or entitlement  (hereinafter  collectively or specifically referred to
          as an  "Entitlement")  which DFS has the right to prosecute or pursue,
          Aura or its  designee  may do so as the assignee of DFS so long as the
          pursuit  thereof  is  without  cost to DFS from and  after the date or
          notice by Aura to DFS of its intention that Aura or its designee shall
          pursue said  Entitlement.  To the extent Aura or its designee recovers
          any funds from any  Entitlement,  it will hold such funds in trust for
          DFS where the  requirements of Section 4(a) (i) are otherwise not met.
          Such  funds will be paid to DFS on the 730th day after the date of the
          execution of this Agreement.

     (iii)Except as  allowed in this  Section  4.,  DFS shall not  transfer  its
          security  interest in or  ownership of any NewCom  assets  without the
          express written consent of Aura. DFS shall not resolve any Entitlement
          for less  than its full  value  without  first  notifying  Aura of its
          intention to so do and providing Aura with the  opportunity to instead
          pursue the Entitlement at no further cost to DFS.

     (iv) From and  after the date of  execution  of this  Agreement,  DFS shall
          account  monthly  on the  first  day of each  month  to Aura as to any
          monies  received  by DFS as a result of its  ownership  of or security
          interest  in NewCom  assets and the  particular  asset or assets  from
          which the funds  received were derived but only where DFS received any
          funds from an Entitlement in such previous month.

SECTION 5.  Representations And Warranties.

     (a) Aura represents and warrants to DFS as follows:

     (i)  Aura is a corporation, duly incorporated, validly existing and in good
          standing  under the laws of the State of Delaware,  with the requisite
          corporate power and authority to own and use its properties and assets
          and to transact  the  business  in which it is engaged  and  presently
          proposes to engage.

     (ii) Aura has all the  power,  authority  and due  capacity  to  issue  and
          deliver the Shares pursuant to this Agreement. All corporate action on
          the part of Aura, its officers,  directors and stockholders  necessary
          for the  authorization,  execution and delivery of this  Agreement and
          the performance of all Aura  obligations  hereunder and thereunder has
          been taken on or before the date hereof.  This  Agreement  constitutes
          the valid and legally binding  obligation of Aura enforceable  against
          Aura in accordance with its terms.

     (iii)All of the Shares  when  delivered  shall  have been duly  authorized,
          validly issued, fully paid and non-assessable.

     (iv) The Shares are free and clear of all liens or encumbrances.

     (v)  No  consent  of  any  other   party   including   without   limitation
          shareholders  or  creditors  of Aura  and no  consent,  authorization,
          approval  or  other  action  and  no  notice  to or  filing  with  any
          governmental authority or regulatory body except as required hereunder
          is required either for the execution,  delivery or performance of this
          Agreement by Aura.

     (b) DFS represents and warrants to Aura as follows:

     (i)  DFS is a corporation, duly incorporated,  validly existing and in good
          standing  under the laws of the State of  Nevada,  with the  requisite
          corporate power and authority to own and use its properties and assets
          and to transact  the  business  in which it is engaged  and  presently
          proposes to engage.

     (ii) The  obligations of NewCom to DFS are valid and binding and secured by
          a valid and perfected first priority security interest in favor of DFS
          in all assets of NewCom specified in the Security Documents.

     (iii)Except for collateral  heretofore  sold,  DFS has neither  transferred
          nor assigned any portion of the  indebtedness  owed to it by NewCom or
          any collateral which secures the indebtedness to DFS.

     (iv) DFS shall  timely  take such  actions as may be  required to renew and
          continue the perfection of its security  interest in the NewCom assets
          described in this Section 4.

     (v)  DFS confirms that an  investment in the Shares  involves a high degree
          of  risk,  and it is  able  (i) to  bear  the  economic  risk  of this
          investment,  (ii) to hold the Shares for an indefinite period of time,
          and (iii) to afford a complete loss of its investment.

     (vi) DFS  hereby  represents  that  DFS,  by  reason  of DFS'  business  or
          financial  experience,  has the capacity to protect DFS' own interests
          in connection with the transactions contemplated by this Agreement.

     (vii)DFS hereby acknowledges that in connection with the acquisition of the
          Shares DFS has been furnished by Aura with all  information  regarding
          Aura which DFS or its representative has requested,  has been afforded
          the opportunity to ask questions of, and to receive answers from, duly
          authorized  officers or other  representatives  of Aura concerning the
          terms and  conditions  of the Shares  and the  affairs of Aura and has
          received   any   additional   information   which   such  DFS  or  its
          representative has requested.

     (viii) DFS has relied  solely upon its own  independent  investigation  and
          Aura's  representations  in this  Agreement  in making the decision to
          acquire the Shares. To the extent deemed necessary or advisable by it,
          DFS has  retained,  at the  sole  expense  of DFS,  and  relied  upon,
          appropriate  professional  advice  regarding the  investment,  tax and
          legal merits and consequences of the acquisition of the Shares.

     (ix) DFS hereby  acknowledges that the offer and sale of the Shares has not
          been reviewed by the U.S.  Securities  and Exchange  Commission or any
          state  regulatory  authority,  since the  Offering  is  intended to be
          exempt  from  the  registration  requirements  of  Section  5  of  the
          Securities  Act of 1933 (the  "Securities  Act")  pursuant  to Section
          4(2).  DFS shall not sell or otherwise  transfer  the Shares  unless a
          subsequent  disposition  is  registered  under the  Securities  Act in
          accordance with this Agreement or is exempt from such registration.

     (x)  DFS  understands  that the Shares have not been  registered  under the
          Securities Act by reason of a claimed  exemption  under the provisions
          of the  Securities Act which depends,  in part,  upon DFS'  investment
          intention.  In  this  connection,  DFS  hereby  represents  that it is
          acquiring the Shares for its own account for investment and not with a
          view toward the resale or distribution to others or for resale, except
          in accordance with applicable securities laws.

     (xi) DFS understands  that unless and until the Shares are registered,  the
          Shares  are  subject  to  significant   limitations  on  resale  under
          applicable  securities  laws. DFS understands  that reliance upon Rule
          144 under the Securities Act for resale of the Shares requires,  among
          other conditions,  a one-year holding period prior to the resale (such
          resale after such one year holding  period  being  further  subject to
          sales volume limitations).

     (xii)DFS  consents  to  the  placement  of  two  legends,   or  substantial
          equivalents  thereof,  set  forth  below on any  certificate  or other
          document  evidencing the Shares,  until such time as the  Registration
          Statement becomes effective.

          (a)  The legend below shall remain until the Shares are sold under the
               Registration  or until two (2) years  after  the  receipt  of the
               Shares by DFS.

               THE  SHARES   REPRESENTED  BY  THIS  CERTIFICATE  HAVE  NOT  BEEN
               REGISTERED  UNDER THE UNITED  STATES  SECURITIES  ACT OF 1933, AS
               AMENDED  (THE   "SECURITIES   ACT"),  OR  ANY  APPLICABLE   STATE
               SECURITIES LAWS, AND MAY NOT BE SOLD,  OFFERED FOR SALE,  PLEDGED
               OR  HYPOTHECATED  OR  OTHERWISE  TRANSFERRED  IN THE ABSENCE OF A
               REGISTRATION  STATEMENT IN EFFECT WITH RESPECT TO THE  SECURITIES
               UNDER THE SECURITIES ACT OR AN EXEMPTION FROM THE SECURITIES ACT.
               ANY  SUCH  TRANSFER  MAY  ALSO  BE  SUBJECT  TO  COMPLIANCE  WITH
               APPLICABLE STATE SECURITIES LAWS AND THE LAWS OF OTHER APPLICABLE
               JURISDICTIONS.

          (b)  The legend  below shall  remain  until the Shares are sold on the
               public market in accordance with the terms of this Agreement.

               THE SHARES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS
               AND  CONDITIONS  OF A  SETTLEMENT  AGREEMENT  AND MUTUAL  RELEASE
               BETWEEN THE ISSUER AND DEUTSCHE FINANCIAL SERVICES CORPORATION, A
               COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE ISSUER.

     (xiii) DFS is aware  that  Aura  will make a  notation  in its  appropriate
          records with respect to the restrictions on the transferability of the
          Shares.

SECTION 6.  Mutual General Releases.

     (a) Except for the obligations and  representations set forth in or created
by the  provisions  of Sections 1 through 4 hereof,  DFS,  on the one hand,  and
Aura, on the other hand, for themselves and for their respective  beneficiaries,
trustees,  predecessors,   officers,  directors,  shareholders,  agents,  heirs,
representatives,  attorneys,  successors and assigns,  and each of them,  hereby
unconditionally,  irrevocably  and forever  release and  discharge,  each to the
other,  as  well  as  their  beneficiaries,  trustees,  predecessors,  officers,
directors, shareholders,  agents, heirs, representatives,  attorneys, successors
and assigns,  of and from any and all claims,  demands,  liabilities,  causes of
action, damages, losses, debts,  obligations,  agreements,  fees and expenses of
every kind and nature  whatsoever,  directly  or  indirectly,  known or unknown,
suspected or  unsuspected,  in law or in equity,  which they or any of them ever
had,  now have or may have,  from the  beginning  of time to the date upon which
each releasing party has executed this  Agreement,  including but not limited to
each and all of the claims asserted in the Civil Action.

     (b) DFS and Aura, and each of them, understand that there is risk that they
may incur or have  incurred  losses,  damages or  injuries  which are unknown or
unanticipated  or with  regard  to which  they are  mistaken  at the time of the
execution of this Agreement.  Each releasing party,  person and entity, and each
of them,  assumes  said risks,  and the  releases  contained  herein shall apply
contained herein shall apply to all unknown or unanticipated losses, damages and
results as well as those known and/or anticipated.  Each releasing party, person
and entity, and each of them, acknowledges that they have been informed by their
counsel of the provisions of Section 1542 of the  California  Civil Code and the
applicability  of those  provisions to this Agreement and the release  contained
herein.  Upon the advice of their respective  counsel,  they do hereby waive and
relinquish  all  rights  and  benefits  which  they have or may have  under said
section which reads as follows:

     "A general  release does not extend to claims  which the creditor  does not
     know or suspect to exist in his favor at the time of executing the release,
     which if known by him must have materially affected his settlement with the
     debtor."

     (c) DFS and Aura,  and each of them,  acknowledge  that they are aware that
they may hereafter  discover  facts which are  different  from or in addition to
those which they now know or believe to be true with  respect to this  Agreement
or to the matters  herein  released,  and they agree that this Agreement and the
release  contained  herein  shall be and  remain in full force and effect in all
respects notwithstanding any such different or additional facts.

SECTION 7.  Notices.

     Any notice or demand desired or required to be given  hereunder shall be in
writing  and  deemed  given  when  personally  delivered,  sent  by  telecopier,
overnight courier or deposited in the mail,  postage prepaid,  sent certified or
registered,  return  receipt  requested,  and addressed at the addresses  herein
furnished for such purpose. Any notice delivered personally or by telecopy shall
be deemed to be received on the date of delivery or  transmission  by  telecopy;
any notice sent by  overnight  courier  shall be deemed to be  received  one (1)
business  day after the date sent;  and any notice  mailed shall be deemed to be
received on the date stamped on the receipt.

         Notice shall be delivered to the following persons.

         To Aura                           To DFS

         Michael Froch                     Deutsche Financial Services
         General Counsel                   Attn:  General Counsel
         Aura Systems, Inc.                645 Maryville Centre Drive, 2nd Floor
         2335 Alaska Avenue                St. Louis, Missouri  63141
         El Segundo, CA 90245              Fax: (314) 523-3190
         Fax: (310) 643-8719

SECTION 8.  Miscellaneous Provisions.

     (a) In the  event  that any  provision  of this  Agreement  should  be held
invalid or  unenforceable  for any reason,  such provision shall be severed from
this Agreement and shall not affect the remainder of this Agreement, which shall
remain valid and in full force and effect.

     (b)  The  parties  hereto  shall  cooperate  and do  everything  reasonably
necessary including, but without limitation, executing further documentation, to
effectuate,  complete or perform  this  Agreement in  accordance  with the terms
hereof and the intent of the parties hereto.

     (c) This Agreement is a compromise  and  settlement of disputed  claims and
shall not be  construed  as an  admission  of  liability  by any of the  parties
hereto, each of whom expressly deny any liability as to the other.

     (d) This  Agreement  constitutes  the only and the entire  agreement of the
parties  hereto  relating  in any way to the  settlement  and  release set forth
herein. No other agreement,  statement,  promise or representation has been made
or is relied upon except as expressly  set forth herein.  This  Agreement can be
modified only by a writing signed by the parties hereto.

     (e) In the event any action or  proceeding  is brought or filed to enforce,
or to raise as a  defense,  or for  breach  of,  any of the  provisions  of this
Agreement,  the prevailing party shall be entitled to recover all of his/her/its
expenses  including,  but not limited  to,  attorneys'  fees and costs  incurred
herein.

     (f) This Agreement and the performance  hereof shall be construed under and
governed by the laws of the State of California.

     (g) This Agreement shall be binding and inure to the benefit of the parties
hereto and their respective heirs, successors and assigns.

     (h) This  Agreement  may be  executed  in one or more  counterparts  all of
which, when taken together, shall constitute a single Agreement.

                                            AURA SYSTEMS, INC.

                                            By: /s/ Gerald S. Papazian
                                                 _______________________________
                                                     Gerald S. Papazian
                                                     Title: President


                                            DEUTSCHE FINANCIAL SERVICES, INC.


                                            By:  /s/ Michelle M. Woock
                                               _________________________________
                                                 Michelle M. Woock
                                                 V.P. of Operations