X0202 3 2006-01-31 0 0000826253 AURA SYSTEMS INC AUSI.PK 0001198708 SCHWARTZ ARTHUR A 2330 UTAH AVENUE EL SEGUNDO CA 90245 1 0 0 0 Common Stock 556941 D Warrant 2006-01-31 2011-01-31 Common Stock 110826 D Warrant 2.5 2011-01-31 Common Stock 25000 D $3.00 per share during the first twelve (12) months from the date of issuance (January 31, 2006), $ 3.50 per share from the thirteenth (13th) to the twenty-fourth (24th) month from the date of issuance, and $4.00 per share from the twenty-fifth (25th) to the sixtieth (60th) month after the date of issuance. The warrant will vest over a two (2) year period. Twenty-five percent (25%) of the shares of common stock underlying the warrant will vest each (6) months after the date of issuance (January 31, 2006). /s/ Arthur Schwartz 2006-02-10