Lady Aerulan was a Highborn Knorth girl killed in the Knorth Massacre. She died leading the assassins away from her cousin Tieri. She was Jame's cousin, and was sister-kin to Brenwyr, later the Brandan Matriarch. In order to secure his sister's happiness, Brant, Lord Brandan, agreed to pay Ganth an exorbitant sum for Aerulan's contract in perpetuity, but Aerulan was killed in the Knorth Massacre before the arrangement could be finalized.
Many people, including Jame herself, have commented on the fact that Aerulan's face on her death banner could be Jame's twin, although only Torisen makes the point that Jame would never wear the benevolent expression Aerulan is usually described with, not to mention that Aerulan lacked any of the typical Knorth traits like being a powerful Shanir.
On the night of the Knorth Massacre, Brenwyr and Aerulan had a fight; Brenwyr was jealous of Aerulan's kindness to her little cousin Tieri. That night, when the Bashtiri Shadow Guild came, there had been Tishooo winds, and Brenwyr heard Aerulan calling for her, but angry and hurt by the fight, she hasn't realized the calls were real until it was too late.
When Torisen came to power as Lord Knorth and Highlord, Brant brought up the proposed contract, offering to meet Ganth's original price in exchange for Aerulan's death-banner, but Torisen was unwilling to profit from what he saw as his father's greed.
With the garrison at Gothregor facing a winter of famine, Jame, Trishien and Marc were able to persuade Torisen to fulfill Aerulan's contract. Her price bought the Knorth supplies for the winter, enough money for Torisen to maintain himself in the style appropriate to his dignity as Highlord (at the suggestion of Lord Brandan and to humor Burr) and, at Brenwyr's suggestion, to settle an adequate allowance on Jame, with the rest of the considerable sum to be held for him by Lord Brandan in trust.