Document:

Exhibit
10.2

 

THIRD
AMENDMENT TO TRANSACTION DOCUMENTS

 

This THIRD
AMENDMENT TRANSACTION DOCUMENTS (this “Amendment”), is effective as of April 8, 2017, (the “Execution
Date”) by and among Aura Systems, Inc., a Delaware corporation (the “Company”), and those
other persons who have signed the signature page hereto (the “Signatories”), with reference to that
certain Securities Purchase Agreement dated May 7, 2013 (as amended, the “Purchase Agreement”) by and
among the Company and the Buyers (as that term is defined in the Purchase Agreement). Capitalized terms not defined herein that
are defined in the Purchase Agreement shall have the meaning ascribed to them in the Purchase Agreement.

  

WHEREAS,
on or about January 30, 2017 the Company and the Signatories entered into that certain First Amendment Transaction Documents agreement
by which the parties agreed to amend the Transaction Documents, including without limitation, the Purchase Agreement; and

 

WHEREAS,
on or about March 14, 2017 the Company and the Signatories entered into that certain Second Amendment Transaction Documents agreement
by which the parties agreed to amend the Transaction Documents, including without limitation, the Purchase Agreement whereby,
among other changes, certain deadlines requiring the Company to file a proxy statement by March 15, 2017 were extended; and

 

WHEREAS,
the Company and Signatories desire to further amend the Transaction Documents, including without limitation, the Purchase Agreement
as set forth herein; and

 

WHEREAS,
pursuant to Section 11.11 of the Purchase Agreement, any amendment to the Transaction Documents including without limitation,
the Purchase Agreement made by an instrument in writing signed by the Company and the Required Buyers shall be binding on all
Buyers and holders of Securities, provided that such amendment applies to all of the holders of the Securities then outstanding;
and

 

WHEREAS,
the Signatories hold or have the right to acquire at least seventy-five percent (75%) of the Conversion Shares and the Warrant
Shares on a fully-diluted basis and therefore constitute the Required Buyers.

 

NOW,
THEREFORE, in consideration of the premises and the mutual agreements and covenants hereinafter set forth, and intending to
be legally bound, the Company and the Required Buyers hereby agree that the Transaction Documents are, as of and at the Execution
Date, amended as follows:

 

1.             Amendment
to Section 5.6 of Purchase Agreement. Section 5.6 of the Purchase Agreement is hereby amended to read in its entirety
as follows:

 

5.6. Stockholder
Meeting. The Company shall provide each stockholder entitled to vote at a special or annual meeting of stockholders of the Company
(the “Stockholder Meeting”), with a proxy statement, soliciting each such stockholder’s affirmative
vote at the Stockholder Meeting for approval of resolutions (the “Resolutions”) to (i) to elect a new
board of at least five (5) directors; (ii) to approve an amendment to the Certificate of Incorporation to effect up to a 1-for-7
reverse stock split of the Common Stock (such reverse stock split is referred to herein as the “Authorized Reverse
Split”) (the affirmative approval of the Authorized Reverse Split being referred to herein as the “Stockholder
Approval”), and the Company shall use its best efforts to solicit its stockholders’ approval of the Resolutions.

 

      

     

    

 

2.             Amendment
to Section 1.1 of Amended and Restated Senior Convertible Note. Section 1.1 of the Amended and Restated Senior Convertible
Note is hereby amended to read in its entirety as follows:

 

1.1. Base Interest Rate.
So long as no Event of Default shall have occurred and be continuing, the Company shall pay interest on the unpaid Principal balance
of, and accrued and unpaid interest on, this Note from the Issuance Date until the Execution Date at a rate per annum equal to
sixteen (16%) percent (the “Interest Rate”). All accrued and unpaid interest on this Note from the Issuance
Date through the Execution Date shall, on the Execution Date, be added to the Principal amount of this Note. Commencing upon the
Execution Date, and through the sooner of (i) January 15, 2018 or (ii) the fifth (5th) Business Day following a Stockholder Meeting
(as defined in the Amendment Agreement) (the “Interest Recommencement Date”) the Interest Rate under
this Note shall be reduced to a rate per annum equal to zero percent (0.00%). Following the Interest Recommencement Date, the Interest
Rate will automatically increase to five percent (5%) per annum.

 

3.             Amendment to Section 3.2 of Amended and Restated Senior Convertible Note. Section 3.2 of the Amended and Restated
Senior Convertible Note is hereby amended to read in its entirety as follows:

 

3.2. Required
Payment Upon Qualified Financing. No later than five (5) Business Day following Stockholder Approval (the “Required
Payment Date”), the Company shall remit to Holder payment in the “Cash Payment Amount”
set forth opposite such Holder’s name in Schedule A attached to the Amendment Agreement (the “Required
Cash Payment”) provided however, that if a Qualified Financing has not occurred prior to the Required Payment
Date, such Required Payment Date shall be automatically extended until five (5) Business Day following the occurrence of a Qualified
Financing. For purposes of this Section 3.2, a “Qualified Financing” means the receipt by the Company
of no less than $4,000,000 in aggregate gross proceeds from the sale of equity securities (including securities convertible into
equity securities) of the Company in one or a series of related transactions after the Execution Date. Any Required Cash Payment
made hereunder shall reduce the amount owed under this Note by the amount of such Required Cash Payment.

 

[signature page to follow]

  

      

     

    

 

IN
WITNESS WHEREOF, the Signatories and the Company have each caused this Third Amendment Transaction Documents to be duly executed
as of the Execution Date set forth above.

 

COMPANY:

 

AURA
SYSTEMS, INC.

 

	By:	/s/
    Melvin Gagerman	 
	 	Melvin
    Gagerman	 
	 	Chief
    Executive Officer	 
	 	 	 
	SIGNATORIES:
     	 
	 	 	 
	RBC Capital Markets LLC Cust FBO Bruce M. Dresner IRA  
	 	 	 
	By:	/s/
    Bruce M. Dresner	 
	 	Bruce
    M. Dresner	 
	 	 	 
	Robert
    T. Lempert  	 
	 	 	 
	By:	/s/
    Robert T. Lempert	 
	 	Robert
    T. Lempert	 
	 	 	 
	LPD Investments, Ltd.	 
	 	 	 
	By:	/s/
    Peter Dalrymple	 
	 	Peter
    Dalrymple	 
	 	G.P.	 
	 	 	 
	Kenmont
    Capital Partners, L.P.  	 
	 	 	 
	By:	/s/
    Donald R. Kendall, Jr.	 
	 	Donald
    R. Kendall, Jr.	 
	 	Managing
    Director	 
	 	 	 
	Keith
    Guenther  	 
	 	 	 
	By:	/s/
    Keith Guenther	 
	 	Keith
    GuentherExhibit 10.3

 

SECOND AMENDMENT TO DEBT REFINANCING
AGREEMENT

 

This
SECOND AMENDMENT TO DEBT REFINANCING AGREEMENT (this “Amendment”), is effective as of the 9th
day of April 2017, (the “Effective Date”) and entered into by and among Aura Systems, Inc., a Delaware
corporation (the “Company”), and Warren Breslow, an individual (“Breslow”),
and the Survivor’s Trust Under the Warren L. Breslow Trust (the “Breslow Trust” and together with
Breslow, the “Lender”), with reference to that certain Debt Refinancing Agreement dated January 24,
2017 (as amended, the “Original Refinancing Agreement”) by and among the Company and the Lender. Capitalized
terms not defined herein that are defined in the Original Refinancing Agreement shall have the meaning ascribed to them in the
Original Refinancing Agreement.

 

WHEREAS,
on or about January 24, 2017 the Company and the Lender entered into that certain Original Refinancing Agreement; and

 

WHEREAS,
in or about February 2017, the Company and the Lender entered into that certain First Amendment to Debt Refinancing Agreement
whereby, among other changes, certain deadlines requiring the Company to file a preliminary proxy statement with the SEC by March
1, 2017 were extended; and

 

WHEREAS,
the parties desire, to further amend the Original Purchase Agreement as set forth herein; and

 

WHEREAS,
pursuant to Section 17 of the Original Refinancing Agreement, amendments thereto may be made by an instrument in writing signed
by the Company and the Lender.

 

NOW
THEREFORE, in Consideration of the premises and the mutual agreements and covenants hereinafter set forth, and intending to
be legally bound, the Company and the Lender hereby agree that the Original Refinancing Agreement is as of and at the Effective
Date, amended as follows:

 

1.            Amendments
to Section 3B. Section 3B of the Original Refinancing Agreement is hereby amended to read in its entirety as follows:

 

B.       Notwithstanding
anything to the contrary in this Agreement, including without limitation Section 3A above, if Stockholder Approval is not obtained
within eighteen (18) months of the Effective Date hereof, this Agreement and the New Promissory Note shall be deemed to be rescinded
by the parties hereto, and without further action by any party, shall be of no further force or effect and null and void ab initio;
provided however, that in the event that each Breslow Party does not vote all of the voting securities of the Company beneficially
owned by him/it, respectively, in favor of the Resolutions at each Shareholder Meeting, then in such event this Section 3B shall
be void and of no effect. To the extent this Agreement and the New Promissory Notes are rescinded in accordance with this Section
3B, the Company shall promptly deliver to the Breslow Trust replacement promissory notes in form and substance equivalent to the
Promissory Notes, representing the right to be paid aggregate principal and interest equal to the Aggregate Debt plus the
amount of additional interest that would have accrued under the Promissory Notes had they remained outstanding between the date
hereof and the date of delivery of such replacement promissory notes.

 

2.             Amendments
to Section 5A. Section 5A of the Original Refinancing Agreement is hereby amended to read in its entirety as follows:

 

A.       Stockholder
Meeting, The Company shall provide each stockholder entitled to vote at a special or annual Meeting of stockholders of
the Company (the “Shareholder Meeting”), with a proxy statement, soliciting each such stockholder’s
affirmative vote at the Shareholder Meeting for approval of a resolution (the “Resolution”) to approve
amendment to the Company’s Certificate of Incorporation to effect up to a 1-for-7 reverse stock split of the Common Stock
(such reverse stock split is referred to herein as the “Authorized Reverse Split”) (such affirmative
approval being referred to herein as the “Shareholder Approval”), and the Company shall use its best
efforts to solicit its stockholders’ approval of the Resolution and to cause the board of directors of the Company to recommend
to the stockholders that they approve the Resolutions.

 

[signature page to follow]

 

      

     

    

 

IN
WITNESS WHEREOF, the Lender and the Company have each caused this Second Amendment to be duly executed as of the Effective
Date set forth above.

 

COMPANY:

 

AURA
SYSTEMS, INC.

  

	By:	/s/
    Melvin Gagerman	 
	 	Melvin Gagerman	 
	 	Chief Executive Officer	 
	 	 	 
	LENDER:	 
	 	 	 
	SURVIVOR’S TRUST UNDER THE

WARREN L. BRESLOW TRUST.

	 

	 	 	 
	By:	/s/ Warren
    L. Breslow	 
	 	Warren L. Breslow, Trustee	 
	 	 	 
	WARREN L. BRESLOW	 
	 	 	 
	By:	/s/
    Warren     L. Breslow	 
	 	Warren L. Breslow, an Individual

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