EXHIBIT 10.32

February 26, 2002                                     Via Facsimile & U.S. Mail



Joshua A. Hauser
46 Yellow Cote Road
Oyster Bay Cove, NY   11771

         Re:  Employment

Dear Mr. Hauser:

On  behalf  of Aura  Systems,  Inc.,  I would  like to  offer  you the  regular,
full-time, salaried position of President and Chief Executive Officer. The terms
of your employment are as follows:

You will have an eighteen  month term of  employment,  beginning  March 1, 2002.
Ninety days prior written notice will be required to terminate  your  employment
following expiration of the term.

Your annual base salary will be $350,000.

You are  eligible for a target  bonus of 30% at twelve  months of  employment,
based upon subjective critera as determined by the Board of Directors.

You  will  receive  as  soon  as is  practicable  a  $25,000  up-front  fee  for
re-location to the Los Angeles basin.

You will receive as soon as is  practicable  1,600,000  options to purchase Aura
Common  Stock at an  exercise  price of $0.50.  The  options  will vest 1/3 at 6
months  plus one day from the date of  grant  (Feb.  13,  2002),  2/3 rd's at 12
months, and will fully vest 18 months from the date of grant.  Provided that you
do not  voluntarily  leave  your  employment  prior  to the end of the  term and
provided you are not otherwise  terminated  for cause  (fraud,  gross or willful
negligence)  during the term,  once  vested,  these  stock  options  will remain
exercisable  for five years from the date your  employment  term  expires.  Your
options will fully vest and remain  exercisable for five years in the event of a
merger or  consolidation  of Aura Systems,  Inc. into any other  corporation  or
acquisition of substantially all of the outstanding shares of Aura Systems, Inc.
by another entity.  These  provisions  relating to your options will be enforced
according to that which is contained in this section,  notwithstanding  contrary
provisions  which may be stated in Aura's standard form Stock Option  Agreement.
The grant of options is made,  subject to the March 2000 Stock  Option  Plan and
the Securities laws of the United States.

You  will be  reporting  directly  to Carl  Albert,  Chairman  of the  Board  of
Directors.  As described in our Benefits  Handbook,  Aura provides its employees
(on the first of the month after 30 days of continuous employment,  in your case
April 1, 2002) with the following benefits:

Vacation, Holidays and Personal leave

Medical: POS 90/70% coverage or HMO 100% coverage (California only).

Prescription card.

Dental: DMO or Traditional Coverage.

Flexible Spending Accounts for Healthcare and Dependent care cost.

Group Term Life  insurance:  $100,000  plus $100,000  extra  coverage in case of
accidental death.

Group Long Term Disability: 50% of covered monthly earnings to a maximum benefit
of $6,000 per month.

Another benefit  available on the first quarterly sign-up date following 90 days
of continuous employment is:

401(k)  Plan:  employee  tax  deferred  contributions  partially  matched by the
company.

This offer is contingent upon the following:

Reporting to work at Aura no later than: March 8, 2002.

Please be  advised,  that you will be subject  to all  policies  and  procedures
contained in the Aura  Systems,  Inc.  Company  Policies  and Employee  Benefits
Handbook.  In this  regard,  it is  standard  Aura  Systems  policy  for all new
employees to submit to a background check and  pre-employment  drug testing.  We
are able to begin  this  process  immediately,  even  while you are still in New
York.

Finally,  should  disagreements arise between you and the Company regarding your
employment, such disagreements will be resolved by final and binding arbitration
as provided in your Handbook and the Mutual Agreement to Mediate and Arbitrate.

We look forward to having you join our team. Please  acknowledge your acceptance
of these  terms by signing  below.  Please  also  return to me a signed copy via
electronic mail or facsimile,  at the private number (310) 643-7585,  along with
an original directed confidentially to my attention via U.S. mail.

Sincerely,                                   Acceptance:


----------------------------                 --------------------------------
Michael I. Froch                             Joshua A. Hauser           Date:
Senior Vice President
General Counsel & Secretary



cc:  Carl Albert