EXHIBIT 10.30

                              AMENDMENT AND WAIVER
                                    AGREEMENT

     THIS AMENDMENT AND WAIVER  AGREEMENT (this  "Agreement") is entered into as
of August 6, 2003  between  AURA  SYSTEMS,  INC.,  a Delaware  corporation  (the
"Company"),  and KOYAH LEVERAGE PARTNERS,  L.P. and KOYAH PARTNERS,  L.P. each a
Delaware limited partnership (collectively the "Lenders").

     WHEREAS,  in  connection  with  loans to the  Company by the  Lenders,  the
Company and the Lenders entered into an Agreement dated as of July 24, 2003 (the
"Agreement"),  the Company  executed in favor of the  Lenders  four  Convertible
Promissory  Notes  (collectively,  the "Notes") dated July 24, 2003, the Company
executed in favor of Koyah Leverage Partners,  L.P. (as collateral agent for the
Lenders)  a  Security  Agreement  dated  as of  July  24,  2003  (the  "Security
Agreement"  and together  with the  Agreement  and the Notes,  the  "Transaction
Documents");

     WHEREAS,  the Company has requested that the Lenders amend or waive certain
provisions  of the  Transaction  Documents  and the  parties  wish to correct or
clarify certain other provisions of the Transaction Documents; and

     WHEREAS,  the parties are entering into this  Agreement to provide for such
amendments and waivers, on the terms and conditions set forth herein.

     NOW, THEREFORE, for valuable consideration,  the receipt of which is hereby
acknowledged, the parties do hereby agree as follows:

1. Section 1(g)(ii) of Agreement.

     The Lenders  hereby waive any breach of the  Company's  representation  and
warranty  contained  in  Section  1(g)(ii)  of the  Agreement  arising  from the
existing  defaults  set forth under the heading  "Defaults"  in the  Schedule of
Exceptions attached to this Agreement,  so long as any creditor involved in such
defaults takes no further  actions and exercises no further  remedies to collect
on the  obligations  involved  or enforce  its  related  rights and the  Company
otherwise  remains in compliance  with all of the provisions of the  Transaction
Documents  (as  modified  by the  amendments  and  waivers  set  forth  in  this
Agreement) and this Agreement.

     2. Section 1(i) of Agreement.

     The Lenders  hereby waive any breach of the  Company's  representation  and
warranty  contained in Section 1(i) of the  Agreement  arising from the existing
liens set forth under the heading "Liens" in the Schedule of Exceptions attached
to this  Agreement,  so long as any creditor  involved in such defaults takes no
further actions and exercises no further  remedies to collect on the obligations
involved  or enforce its related  rights and the  Company  otherwise  remains in
compliance with all of the provisions of the Transaction  Documents (as modified
by the amendments and waivers set forth in this Agreement) and this Agreement.

     3. Section 3(l) of Agreement.

     The word  "rulers"  contained in the first  sentence of Section 3(l) of the
Agreement hereby is amended to read "rules".


     4. Section 3 of Notes.

     Section  3 of each  Note  hereby  is  amended  in its  entirety  to read as
follows:

     In light of the  conversion  feature of this Note and to  protect  Lender's
     right of conversion hereunder,  Borrower shall not have the right to prepay
     the outstanding principal balance of this Note or accrued interest thereon,
     in whole or in part,  prior to the Maturity  Date without the prior written
     consent  of Lender;  provided,  however,  that  Borrower  may  prepay  such
     principal balance or accrued interest, in whole only, prior to the Maturity
     Date without  such  consent if Borrower  (i) gives Lender  twenty (20) days
     prior written  notice of such  prepayment and (ii) together with and at the
     time of such prepayment, pays Lender a fee equal to twenty percent (20%) of
     the outstanding principal balance as compensation to Lender for the loss of
     its continued  conversion rights (which fee Lender shall have the right, at
     its  option,  to  convert  pursuant  to  Section 9 below in lieu of payment
     thereof in the same manner as principal,  interest or other amounts payable
     under this  Note).  The  parties  acknowledge  and agree  that the  damages
     suffered  by Lender in the  event of the loss of its  continued  conversion
     right is difficult  to determine  and that the parties have set such fee as
     liquidated damages in an amount that they believe reasonably estimates such
     damages.

     5.  Section 5 of Notes.

     Section 5 of each Note  hereby is  amended in its  entirety  to read as set
forth below:

     If any payment of principal  or interest  under this Note shall not be made
     within  five (5) days after the due date,  this Note  shall  bear  interest
     (after as well as before judgment) at a rate of five percent (5%) per annum
     above the rate of interest  which would  otherwise  have been payable under
     this Note or the  maximum  rate of  interest  permitted  to be  charged  by
     applicable law, whichever is less.

     6. Section 9 of Notes.

     The first  sentence  of Section 9 of each Note  hereby is amended to add ",
fees" after the words "accrued interest" contained in such Section.

     7. Section 13(b) of Notes.

     The Lenders  hereby  waive any breach of the event of default  contained in
Section  13(b) of each Note arising  from the existing  defaults set forth under
the heading "Defaults" in the Schedule of Exceptions attached to this Agreement,
so long as any creditor  involved in such defaults takes no further  actions and
exercises no further remedies to collect on the obligations  involved or enforce
its related rights and the Company  otherwise  remains in compliance with all of
the provisions of the  Transaction  Documents (as modified by the amendments and
waivers set forth in this Agreement) and this Agreement.

     8. Section 13(d) of Notes.

     The Lenders  hereby  waive any breach of the event of default  contained in
Section  13(d) of each Note arising from the existing  liens set forth under the
heading  "Liens" in the Schedule of Exceptions  attached to this  Agreement,  if
any, which may cover collateral  under the Security  Agreement and have priority
under applicable law over the security  interest of the Security  Agreement,  so
long as the Company  otherwise  remains in compliance with all of the provisions
of the  Transaction  Documents  (as modified by the  amendments  and waivers set
forth in this Agreement) and this Agreement.

     9. Section 16(g) of Notes.

     Section  16(g) of each  Note  hereby is  amended  to add at the end of such
Section a new sentence which reads as follows:

     The  parties   acknowledge  that  Borrower  currently  does  not  have  any
     authorized but unissued  shares of its common stock  available for issuance
     and Borrower hereby agrees to use its best efforts to take action to call a
     shareholder  meeting and increase its authorized but unissued  common stock
     as soon as practicable.

     10. Section 16(i) of Notes.

     Section 16(i) of each Note hereby is amended to delete the words "of Common
Stock".

     11. Section 3.5 of Security Agreement.

     The third  sentence  of Section  3.5 of the  Security  Agreement  hereby is
amended to read as follows:

     Promptly  upon request of the Secured  Party,  the Debtor shall deliver and
     turn over to the Secured  Party copies of all books and records  pertaining
     to the Collateral.

     12. Section 3.6 of Security Agreement.

     The Lenders hereby waive any breach of the Company's  covenant contained in
Section 3.6 of the Security  Agreement arising from the existing liens set forth
under the  heading  "Liens"  in the  Schedule  of  Exceptions  attached  to this
Agreement,  so long as the Company  otherwise  remains in compliance with all of
the  provisions  of  the  Transaction  Documents  (after  giving  effect  to the
amendments and waivers set forth in this Agreement) and this Agreement.

     13. Section 4.1 of Security Agreement.

     The Lenders  hereby waive any breach of the  Company's  representation  and
warranty  contained  in Section 4.1 of the Security  Agreement  arising from the
existing liens set forth under the heading "Liens" in the Schedule of Exceptions
attached  to this  Agreement,  so  long  as the  Company  otherwise  remains  in
compliance with all of the provisions of the Transaction Documents (after giving
effect to the  amendments  and  waivers  set forth in this  Agreement)  and this
Agreement.

     14. Reaffirmation and Survival of Representations.

     The Company hereby re-affirms and re-makes all of the  representations  and
warranties  contained  in the  Transaction  Documents  as of the date hereof (as
modified by the  amendments and waivers set forth in this  Agreement),  and such
representations  and  warranties  shall survive the closing of the  transactions
contemplated by the Transaction Documents and this Agreement.

     15. Amendments and Waivers.

     Any term of this Agreement may be amended and the observance of any term of
this Agreement may be waived (either  generally or in a particular  instance and
either  retroactively  or  prospectively),  only with the written consent of the
Company  and the Lenders in the case of an  amendment  and only with the written
consent of the waiving party in the case of a waiver.

     16. Entire Agreement.

     This  Agreement,  together with the Transaction  Documents,  constitute the
entire  agreement  of the  parties  concerning  the  subject  matter  hereof and
thereof,  all prior  discussions,  proposals,  negotiations  and  understandings
having been merged herein and therein.  Except as specifically  modified by this
Agreement,  the Transaction  Documents shall remain  unchanged and in full force
and effect.

     17. Successors.

     This  Agreement  shall  inure to the  benefit  of and be  binding  upon the
successors  and  assigns  of the  Company  and  the  Lenders.  Nothing  in  this
Agreement,  express or implied,  is intended to confer upon any party other than
the parties  hereto or their  respective  permitted  successors  and assigns any
rights,  remedies,  obligations  or  liabilities  under  or by  reason  of  this
Agreement, except as may be expressly provided in this Agreement.

     18. Severability.

     If any part of this Agreement is determined to be illegal or unenforceable,
all other parts shall remain in full force and effect.

     19. Attorneys' Fees.

     The  Company  shall  pay  the  reasonable   attorneys'   fees,   costs  and
disbursements  of the Lenders in enforcing any terms of this Agreement,  whether
or not any action at law or in equity is brought.

     20. Governing Law.

     The  Agreement  shall be  governed  by and  construed  and  interpreted  in
accordance  with the law of the  State of  Washington,  without  regard  to that
state's  conflict of laws  principles.  All disputes between the parties hereto,
whether sounding in contract, tort, equity or otherwise,  shall be resolved only
by state and federal  courts located in Spokane,  Washington,  and the courts to
which an appeal  therefrom may be taken. All parties hereto waive any objections
to the location of the above referenced courts, including but not limited to any
objection based on lack of jurisdiction, improper venue or forum non-conveniens.
Notwithstanding the foregoing,  any party obtaining any order or judgment in any
of the  above  referenced  courts  may  bring an  action  in a court in  another
jurisdiction in order to enforce such order or judgment.

     21. Miscellaneous.

     Any notice  under  this  Agreement  shall be given in writing  and shall be
addressed to the party to be notified at the address indicated below, or at such
other address as such party may designate by written notice to the other party.

                                    Aura Systems, Inc.
                                    2335 Alaska Avenue
                                    El Segundo, CA  90245
                                    Attn:   Neal Meehan
                                    Fax:    310-643-8719



<PAGE>


                                    Koyah Leverage Partners, L.P.
                                    c/o ICM Asset Management, Inc.
                                    601 West Main Avenue, Suite 600
                                    Spokane WA 99201
                                    Attn: Robert Law
                                    Fax:  509-444-4500

                                    Koyah Partners, L.P.
                                    c/o ICM Asset Management, Inc.
                                    601 West Main Avenue, Suite 600
                                    Spokane WA 99201
                                    Attn: Robert Law
                                    Fax:  509-444-4500

     22. The Company  shall pay the costs and  expenses of legal  counsel to the
Lenders in  connection  with the  negotiation,  execution  and  delivery of this
Agreement,  the Transaction Documents, and any other related agreements with the
Lenders as well as the consummation of the transactions  contemplated by and the
administration  of  such  agreements  and  any  amendments  or  waivers  of such
agreements.  The  Company  shall pay such costs and  expenses  immediately  upon
submittal,  and the Lenders may apply any  retainer  held by them or their legal
counsel against such costs and expenses.  Alternatively,  the Lenders may deduct
some or all of such costs and  expenses  from the proceeds of the loans from the
Lenders when disbursing  such loans and/or pay such costs and expenses  directly
and then the  amounts so paid shall  constitute  advances  made under the Notes.
Notwithstanding that the Company is paying such costs and expenses,  the Company
acknowledges  and  agrees  that such  legal  counsel  is  representing  only the
Lenders, and not the Company.





                  [Remainder of Page Intentionally Left Blank]



<PAGE>



               [Signature Page to Amendment and Waiver Agreement]

     ORAL  AGREEMENTS OR ORAL  COMMITMENTS TO LOAN MONEY,  EXTEND CREDIT,  OR TO
     FORBEAR  FROM  ENFORCING  REPAYMENT  OF A DEBT  ARE NOT  ENFORCEABLE  UNDER
     WASHINGTON LAW.


     IN WITNESS  WHEREOF,  the parties  have caused  this  Agreement  to be duly
executed and delivered as of the date first set forth above.


                  AURA SYSTEMS, INC.

           By:  /s/ Neal F. Meehan
         Name:  Neal F. Meehan
        Title:  Chairman & Chief Executive Officer

                KOYAH LEVERAGE PARTNERS, L.P.

           By:  Koyah Ventures LLC, its general partner

           By:  /s/ Robert J. Law
         Name:  Robert J. Law
        Title:  Vice President


                KOYAH PARTNERS, L.P.

           By:  Koyah Ventures LLC, its general partner

           By:  /s/ Robert J. Law
         Name:  Robert J. Law
        Title:  Vice President




<PAGE>

                             Schedule of Exceptions


Liens

     1. El  Segundo  real  property  and  facilities  are  subject to a security
interest related to mortgage financing and a pending sale/leaseback transaction.

     2. Note receivable for  approximately  $1,000,000  under the Alpha Ceramics
purchase  agreement has been  assigned as  collateral to the  purchasers in such
sale/leaseback transaction.

     3.  Security  interest  in 177,000  shares of Telemac  Corporate  held as a
long-term  investment  has been  granted to a lender to secure a  $200,000  note
issued in May 2003.

Defaults

     1. Shareholder  litigation  (Barovich/Chiau et al) judgment  settlement for
approximately  $789,000 is in default. In April 2003, this creditor served Writs
of Execution against one of the Company's bank accounts but has taken no further
action.

     2. Convertible  notes issued in August - October 2002 for a total principal
amount of $625,000 are or may be in default.