Document:

EX-10.3

EXHIBIT 10.3

Consulting Agreement

THIS AGREEMENT (“Agreement”) is made as of the 19th day of November, 2006
(“Effective Date”), by and between Cyberonics, Inc. (“Company”), a Delaware corporation, with a
principal place of business at 100 Cyberonics Blvd., Houston, Texas 77058, and Pamela B. Westbrook
(“Consultant”), an individual whose address is 26 Schubach Drive, Sugar Land, Texas 77479.

1. Services. Consultant shall advise the Company with respect to financial matters
(the “Services”), including the preparation and filing of the Company’s Annual Report on Form 10-K
for the period ending April 28, 2006, Quarterly Reports on Form 10-Q for the periods ending July
28, 2006 and September 29, 2006 (the “Delinquent Public Filings”) and such other matters as may be
directed by the Company’s Chief Financial Officer, to whom Consultant shall report during the term
of this Agreement.

2. Compensation.

(a) Fees. The Company shall compensate Consultant at the rate of $1,200 per day for
Services rendered during the term of this Agreement.

(b) Reimbursed Expenses. The Company shall reimburse Consultant for reasonable and
necessary expenses, including travel expenses, incurred in the actual performance of the Services,
provided that such expenses are authorized in writing in advance of the expenditure and evidenced
by legible copies of receipts.

(c) Terms of Payment. All fees and reimbursable expenses will be paid monthly in
arrears in the form of a Company check made payable to Consultant within thirty (30) calendar days
following receipt of Consultant’s invoice, subject to Consultant’s provision of a properly
completed IRS Form W-9.

3. Term and Termination. This Agreement shall be effective as of the Effective Date
and shall continue in full force and effect through the date on which the Delinquent Public Filings
are current, unless sooner terminated as provided herein. This Agreement may be terminated at any
time by either party effective upon written notice.

4. Confidential Information. Consultant acknowledges that in connection with this
Agreement and the Services provided by Consultant, Consultant may acquire and make use of certain
confidential information of the Company, including, but is not limited to, management reports,
financial statements, internal memoranda, reports, patient information, strategic business plans,
pre-clinical and clinical data, clinical strategy, regulatory strategy, and other materials or
records of a proprietary nature (“Confidential Information”). In order to protect the Confidential
Information, Consultant agrees not to use such Confidential Information except in connection with
the provision of the Services and not to divulge the Confidential Information to any third party,
unless Company consents in writing to such use or divulgence or disclosure is required by law.
Consultant shall comply with the applicable federal and state laws and regulations governing the
confidentiality of all patient medical records and peer review information, including the Privacy
Regulations under the Health Insurance Portability and Accountability Act (“HIPAA”). In the event
Consultant receives a request or demand from a third party for the disclosure of Confidential
Information, Consultant shall promptly (within three (3) business days after receipt of such
request or demand) provide written notice to the Company of such request or demand, including a
copy of any written document of such request or demand. On termination of this Agreement,
Consultant shall not take or retain, without prior written authorization from Company, any patient
records or information or Confidential Information of any kind; provided that, for the sake of
clarity, this obligation does not apply to any personal documents, records, or property of Ms.
Westbrook or any documents that are attorney/client privileged between Ms. Westbrook and her
personal counsel or constitute work product of Ms. Westbrook or her personal counsel.. The
foregoing restrictions on use and disclosure of Confidential Information will not apply to the
extent of information: (i) known to Consultant prior to receipt from Company, (ii) of public
knowledge without breach of Consultant’s obligations under this Agreement, (iii) rightfully
acquired by Consultant from a third party without restriction on disclosure or use, (iv) disclosed
by Company to a third party without restriction on disclosure or use, or (v) as to which and to the
extent to which Consultant has received express written consent from an authorized officer of
Company to disclose or use. Without limiting other possible remedies for the breach of this
covenant, the parties agree that injunctive or other equitable relief shall be available to enforce
this covenant, such relief to be without the necessity of posting a bond, cash or otherwise.

5. Representations and Warranties of Consultant.

(a) Compliance with Company Policies and Standards. Consultant shall comply with all
applicable bylaws, rules, and regulations of the Company, and the policies and procedures of the
Company, as are in effect from time-to-time. Consultant shall work cooperatively with the
personnel of the Company.

(b) No Other Restrictive Arrangement. Consultant is not subject to, or a party to,
any employment agreement, non-competition covenant, non-disclosure agreement, or other agreement,
covenant, understanding, or restriction that would prohibit Consultant from executing this
Agreement and performing fully the duties and responsibilities hereunder.

6. Incurring Financial Obligation; Expenses. Consultant may not incur any financial
obligation on behalf of the Company without the prior written approval of the Company.

7. Post-Termination Obligations. On termination, the Company’s sole obligation to
Consultant will be to pay any then-outstanding unpaid fee for Services actually performed hereunder
and to reimburse Consultant for then-outstanding reimbursable expenses, subject to the provisions
of Section 2(b). Consultant hereby expressly agrees that termination of this Agreement prior to
the end of the term specified in Section 3 or any extension thereof will not void, invalidate, or
otherwise affect Consultant’s obligations under Section 4 (Confidential Information). Consultant
expressly agrees that the provisions of Section 4 will survive termination of this Agreement.

8. Non-Assignment. This Agreement is personal to Consultant and cannot be assigned by
Consultant or otherwise transferred to any other person or party without the Company’s prior
written consent. Any assignment without such consent will be cause for immediate termination of
this Agreement by the Company. Any other attempts to transfer will be void. Consultant further
agrees not to subcontract services under this Agreement, in whole or in part. Consultant’s
obligations under this Agreement are binding on Consultant’s heirs, legal representatives,
administrators, and executors.

9. Independent Contractor. Consultant’s relationship with the Company hereunder shall
be that of an independent contractor. It is expressly acknowledged and stipulated by Consultant
and the Company that Consultant shall not, for any purpose whatsoever, be considered an employee,
representative, or agent of the Company. Nothing in this Agreement is intended or shall be
construed to create an employer/employee relationship, a joint venture relationship, or a lease or
landlord/tenant relationship, or to allow the Company to exercise control or direction over the
manner or method in which Consultant performs the Services. Consultant understands and agrees
that: (a) Consultant will not be treated as an employee of the Company for federal tax purposes;
(b) the Company will not withhold on behalf of Consultant pursuant to this Agreement any sums for
income tax, unemployment insurance, social security, or any other withholding pursuant to any law,
or make available to Consultant any of the benefits afforded to employees of the Company; and (c)
all of such payments, withholdings, and benefits, if any, are the sole responsibility of
Consultant. Consultant shall not enter into any Agreements or incur any obligations on the
Company’s behalf or purport to commit the Company in any other manner, without its prior written
consent.

10. Entire Agreement. This Agreement is made contemporaneous with a Resignation
Agreement of even date between the parties (the “Resignation Agreement”). Excluding the
Resignation Agreement, this Agreement constitutes the entire agreement and understanding between
the parties in respect of the subject matter hereof, and supersedes all prior agreements,
understandings and communications between them, whether oral or written, pertaining to that subject
matter. No modification of or addition to this Agreement will be effective unless made in writing
signed by Consultant and a duly authorized officer of the Company.

11. Governing Law. This Agreement shall be construed and governed according to the
laws of the State of Texas, without giving effect to its conflict of laws provisions.

	 	 	 
	 
	 	 
	 
	 	 
	Cyberonics, Inc.

	 	Consultant:
	 
	 	 
	By: _/S/_David S. Wise     

	 	_/S/_Pamela B. Westbrook     
	 

	 	 
	 
	 	 
	David S. Wise, Vice President

	 	Pamela B. WestbrookEX-10.1

AMENDMENT NO. 1

TO THE

ASSET PURCHASE AGREEMENT

This Amendment No. 1 to the Asset Purchase Agreement (this “Amendment”) is made as of November
16, 2006 and amends that certain Asset Purchase Agreement dated as of November 10, 2006, by and
between Skytel Corp., a Delaware corporation, and Bell Industries, Inc., a California corporation
(the “Agreement”).

The Agreement is hereby amended as follows:

	 	1.	 	Amendment to Section 11.7 of the Agreement.

Section 11.7 of the Agreement is amended by adding to it the following language:

“Anything in this Agreement or any agreement related to this Agreement (any such related
agreement, a “Related Agreement”) to the contrary notwithstanding, Purchaser shall have the right
(without the prior written consent of Seller), at any time, and in its sole discretion, to assign
for security interest purposes any or all of its rights under this Agreement and any Related
Agreement to any lender providing financing to Purchaser, any of Purchaser’s permitted assigns, or
any Affiliates of Purchaser or Purchaser’s permitted assigns (Purchaser, such assigns, and such
Affiliates, collectively, the “Purchaser Parties”) and, upon the occurrence and during the
continuance of any event of default under the financing agreements between any such lender and any
of the Purchaser Parties, such lender may exercise any or all of the rights, interests, and
remedies of any of the Purchaser Parties under this Agreement or any Related Agreement.”

2. Other Provisions. The other provisions of the Agreement shall remain in full force
and effect.

3. Counterparts. This Amendment may be executed in counterparts, each of which shall
be deemed an original and all of which together shall constitute one and the same instrument.

4. Governing Law. This Amendment shall be governed by and construed under the laws of
the State of New York, without regard to principles of conflicts of laws.

[remainder of page intentionally left blank; signatures to follow]

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This Amendment is executed as of the date first set forth above.

SKYTEL CORP.

By:/s/ Francis Shammo

Name: Francis Shammo

Title: SVP and Chief Financial Officer

BELL INDUSTRIES, INC.

By:/s/ John A. Fellows

Name: John A. Fellows

Title: Chief Executive Officer

The undersigned hereby joins as a party to this Amendment for the limited purposes provided in
Section 11.9 of the Agreement:

MCI, LLC

By:/s/ Francis Shammo

Name: Francis Shammo

Title: SVP and Chief Financial Officer

41060316.1

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