Document:

EX-10.1

EXHIBIT 10.1

RESIGNATION AGREEMENT

This Agreement by and between Robert P. Cummins (“Mr. Cummins”) a resident of Houston, Texas,
and Cyberonics, Inc. (“Cyberonics” or “Company”), a Delaware corporation, is made and effective
this 17th day of November, 2006 (“Effective Date”).

Whereas, Mr. Cummins is employed by Cyberonics as Chairman of the Board of Directors
(“Board”), President, and Chief Executive Officer pursuant to an Employment Agreement dated August
5, 2005 and effective through August 5, 2010 (“Employment Agreement”);

Whereas, Mr. Cummins is a member of the Board of Cyberonics;

Whereas, Cyberonics has granted Mr. Cummins stock options pursuant to agreements providing
grant dates of October 13, 1997; June 8, 2000; June 9, 2000; June 25, 2001; May 14, 2002; June 2,
2003; and June 15, 2004 (collectively, “Stock Option Agreements”);

Whereas, effective immediately, Mr. Cummins desires voluntarily to resign as Chairman of the
Board, Chief Executive Officer, President, member of the Board of Cyberonics and all other
positions he may have with Cyberonics or any affiliated company, and Cyberonics desires to accept
such resignation effective immediately;

Whereas, in connection with Mr. Cummins’ resignation, the parties desire to amend and restate
their rights and obligations with respect to each other;

Now, therefore, for good and valuable consideration, the sufficiency of which is hereby
acknowledged, Mr. Cummins and Cyberonics agree:

1. To be effective immediately, Mr. Cummins hereby resigns as Chairman of the Board, Chief
Executive Officer and President of Cyberonics, as a member of the Board of Cyberonics, and from all
other positions he may hold with Cyberonics or any affiliated company, and Cyberonics hereby
accepts Mr. Cummins’ resignation from all such positions.

2. Within five (5) business days of the Effective Date of this Agreement, Cyberonics shall pay
Mr. Cummins in cash one million seven hundred sixteen thousand four dollars and twenty-three cents
($1,716,004.23). The parties acknowledge that the foregoing cash payment includes the “Gross-Up
Payment” (as defined in Paragraph 6(f) of the Employment Agreement). Paragraph 6(f) of the
Employment Agreement is hereby incorporated in this Paragraph by reference solely for the purpose
of effecting adjustments to that Gross-Up Payment as provided therein.

3. Cyberonics shall cause all stock options previously granted Mr. Cummins pursuant to the
Stock Option Agreements and all shares of restricted stock previously granted to Mr. Cummins
pursuant to Restricted Stock Agreements which have not previously vested immediately to vest on the
Effective Date. All options granted by such agreements shall become fully exercisable and all
shares of restricted stock shall become freely tradable, subject to such restrictions, if any, as
required by federal law or regulation or the regulation of any stock exchange. Any exercise of such
options shall be according to the terms and conditions of the Stock Option Agreements and the stock
option plans pursuant to which such options were granted; provided, however, if the Company and its
public accountants determine that it is required by U.S. Generally Accepted Accounting Principles
that Mr. Cummins’ June 25, 2001 or June 2, 2003 options must be restated in the next Annual Report
on Form 10-K filed with the SEC, the exercise price for such options shall be adjusted to satisfy
the requirements of the plan(s). Such options shall remain exercisable until the earlier of (a)
expiration of the original grant for such options or (b) December 31, 2007 after which such options
shall terminate and shall no longer be exercisable. Cyberonics shall also cause the remaining
eighty thousand (80,000) unvested restricted shares of Cyberonics common stock issued to Mr.
Cummins on August 5, 2005 to become immediately vested on the Effective Date.

4. Within one week of the Effective Date, Cyberonics shall issue to Mr. Cummins seventy-five
thousand (75,000) shares of Cyberonics common stock (“Shares”). The issuance and re-sale of the
Shares shall not be registered under the Securities Act of 1933, as amended. Mr. Cummins
acknowledges that the Company has no obligation to register the re-sale of the Shares except as set
forth below in this Paragraph 4. The certificate(s) representing the Shares shall bear an
appropriate legend as follows: “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR
IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

If prior to the first anniversary of the Effective Date, Cyberonics proposes to file a
“Registration Statement,” as defined herein, it will give written notice (the “Registration
Notice”) to Mr. Cummins of such registration. Cyberonics will deliver the Registration Notice at
least fifteen (15) days prior to such filing. “Registration Statement” means a registration
statement filed by Cyberonics with the Commission for a public offering and sale of Cyberonics’
common stock; “Registration Statement” shall not include: (i) a registration statement on Form S-8
or Form S-4, or their successors, or any other form for a similar limited purpose, or (ii) any
registration statement covering securities proposed to be issued in exchange for securities or
assets of another corporation, or (iii) any registration for Cyberonics’ outstanding 3.0% Senior
Subordinated Convertible Notes due 2012 (“Notes”), any securities issued in exchange for the Notes
and/or the common stock issuable upon conversion of the Notes or any securities issued in exchange
for the Notes. Upon the written request of Mr. Cummins, given within ten (10) days after Cyberonics
delivers the Registration Notice, Cyberonics shall include in the Registration Statement those
Shares which Mr. Cummins requests to be registered. Mr. Cummins’ request shall state the intended
method of disposition of such Registrable Shares.

In connection with any registration effected hereunder, Mr. Cummins shall provide Cyberonics
with all the information relative to the Shares, the selling stockholder and the method of
disposition required by Cyberonics to complete the requested registration. If the offering that is
the subject of a Registration Statement is an underwritten offering, Mr. Cummins shall enter into
the same underwriting agreement which Cyberonics enters into with the underwriter(s) selected by
Cyberonics for such underwriting and give such indemnifications as are customary for a selling
stockholder. If Mr. Cummins fails to provide any requested information, timely execute any
underwriting or indemnification agreement or to take any other action required hereunder, the
Shares may be excluded from the Registration Statement.

Cyberonics shall have the right in its sole discretion to (i) postpone or withdraw any
Registration Statement effected pursuant to this Paragraph 4 before the effective date of such
registration, and (ii) to suspend or discontinue any Registration Statement at any time after its
effective date. Cyberonics shall be solely responsible for all costs and fees associated with
registering the Shares in such Registration Statement.

5. Within five (5) business days after Cyberonics next files an Annual Report on Form 10-K
with the Securities and Exchange Commission (the “10-K Filing Date”), Cyberonics shall pay
Mr. Cummins an amount equal to the sum of (a) the “Computed Share Price” multiplied by seventy-five
thousand (75,000), and (b) the “Gross-Up Payment” (as defined in Paragraph 6(f) of the Employment
Agreement) for the foregoing product. “Computed Share Price” shall be the average closing price
per share of Cyberonics’ common stock on the Nasdaq Global Market for the period beginning with the
next trading day after the Effective Date and ending with, and including, the first trading day
after the 10-K Filing Date; provided, however, if the average closing price per share differs by
more than two dollars, plus or minus, from the closing price per share on the Effective Date, the
“Computed Share Price” shall be equal to the closing price per share on the Effective Date plus or
minus, as the case may be, two dollars ($2.00). Paragraph 6(f) of the Employment Agreement is
hereby incorporated into this Paragraph by reference solely for the purpose of effecting
adjustments to the Gross-Up Payment as provided therein.

6. If Mr. Cummins elects to continue medical and dental coverage (including dependent
coverage) under Cyberonics’ medical and dental insurance programs pursuant to the Consolidated
Omnibus Reconciliation Act (“COBRA”), Cyberonics shall pay the premium for such coverage until the
first annual anniversary of the Effective Date. Such coverage shall be at the same level of
coverage received by Mr. Cummins during the last 12 months of his employment or, if coverage
provided to the then current CEO is more favorable, and if Cyberonics can obtain such coverage at a
commercially reasonable rate, then Cyberonics shall provide the more favorable coverage.

7. Mr. Cummins shall receive such benefits as he may have from the Cyberonics’ pension and
welfare benefit plans according to the terms and conditions of those plans pursuant to any
elections made by Mr. Cummins.

8. The Indemnity Agreement dated August 1, 2003 and the letter agreement regarding the
Advancement of Attorney’s Fees dated September 28, 2006 between Mr. Cummins and Cyberonics shall
remain in full force and effect. Cyberonics agrees to pay within five business (5) days of the
Effective Date all reasonable legal fees and expenses incurred by Mr. Cummins since October 1, 2006
in connection with negotiations relating to his employment agreement and his resignation.

9. Sections 10, 11, and 12 of the Employment Agreement shall remain in full force and effect;
provided however, that Cyberonics agrees that with respect to Section 12 of the Employment
Agreement Mr. Cummins shall no longer be subject to such restrictions beginning six (6) months from
the Effective Date.

10. Except as expressly set forth in this Resignation Agreement, the Employment Agreement is
superseded and extinguished by this Agreement.

11. On reasonable notice and request of Cyberonics’ General Counsel or such other person
designated by the Board, Mr. Cummins shall cooperate with Cyberonics in all matters related to his
employment with Cyberonics or the winding up of any pending work and the orderly transfer of such
work; any investigation or inquiry undertaken by Cyberonics, its Board or any committee of the
Board, or any governmental agency or stock exchange including without limitation the Securities
Exchange Commission, the Department of Justice and The Nasdaq Stock Market, Inc.; and with respect
to any litigation or administrative proceeding against Cyberonics or any employee, officer, or
director of Cyberonics provided such cooperation as described above is not unduly burdensome and
does not interfere with other employment, his personal affairs or any previously scheduled
employment or business commitment of Mr. Cummins that cannot be rescheduled. Mr. Cummins agrees to
use his best efforts to reschedule any such commitments and Cyberonics agrees that it will use its
best efforts to attempt to minimize the amount of time it may require of Mr. Cummins. Cyberonics
also agrees to pay Mr. Cummins his reasonable expenses, including without limitation, travel,
legal, accounting, and other related expenses.

12. If the Company and its public accountants determine that it is required by U.S. Generally
Accepted Accounting Principles to make a restatement in the next Annual Report on Form 10K filed
with the SEC that would have resulted in Mr. Cummins not earning a bonus for any such period, then
Mr. Cummins shall within five (5) business days of receiving notice of such restatement repay to
Cyberonics that portion of any bonus that would not have been earned had the restated financial
reports been used to calculate such bonus. The notice from Cyberonics to Mr. Cummins shall be sent
after the restatement is filed and shall contain a detailed explanation with supporting
documentation of how and why such bonus was recalculated.

13. Mr. Cummins will deliver to Cyberonics within ten (10) business days all business records
in his possession, custody, or control, including without limitation all analyses, correspondence,
data, or information, memoranda, notes, records, documents, or other materials (in whatever form
maintained, whether electronic, hard copy or otherwise) composed or received by Mr. Cummins, solely
or jointly with others, related in any manner to the past, present, or anticipated business of
Cyberonics or any affiliated company and all property owned by Cyberonics or any affiliated
company. Mr. Cummins represents and agrees that he has no claim or right, title or interest in any
property designated on Cyberonics’ records as property or assets of Cyberonics. Mr. Cummins shall,
within ten (10) business days of the Effective Date, remove all property owned by him from
Cyberonics’ premises. This paragraph does not apply to any personal documents, records, or
property of Mr. Cummins as well as any documents that are attorney/client privileged between Mr.
Cummins and his personal counsel or constitute work product of Mr. Cummins or his personal counsel.

14. Except as provided herein, Mr. Cummins does hereby release, acquit, and discharge
Cyberonics, its directors, officers, employees, agents, attorneys, and representatives, past and
present, and Cyberonics does hereby release, acquit and discharge Mr. Cummins, from any and all
claims and from any and all causes of action of any kind or character, whether now known or not
known, either may have with respect to bonuses, compensation, expenses, remuneration, salary or
wages payable under his Employment Agreement. The payments or consideration provided in paragraphs
2, 3, 4, and 5 of this Agreement are in full satisfaction and compromise of any obligations which
Cyberonics may have to Mr. Cummins for compensation or payments including without limitation any
and all claims for salary, bonuses, severance, stock, stock options or tax gross-up payments.

15. Should any provision of this Agreement be held to be invalid or wholly or partially
unenforceable by a final, non-appealable judgment in a court of competent jurisdiction, such
holding shall not invalidate or void the remainder of this Agreement, and those portions held to be
invalid or unenforceable shall be revised and reduced in scope so as to be valid and enforceable
or, if such is not possible, then such portions shall be deemed to have been wholly excluded with
the same force and effect as if it had never been included herein.

16. The parties understand and agree that the terms of this Agreement are to compromise
doubtful and disputed claims between them, avoid litigation, and buy peace, and that no statement
or consideration herein shall be construed as an admission of any claim, such admissions being
expressly denied.

17. Mr. Cummins and Cyberonics, its directors, officers, employees, representatives,
attorneys, and agents of Cyberonics shall not make any public or private statement with respect to
each other (including, as to Mr. Cummins, any statement with respect to the directors, officers,
employees, representatives, attorneys, and agents of Cyberonics) which are derogatory or may tend
to injure such person in its or their business, public or private affairs. The foregoing
obligations shall not apply to information required to be disclosed or requested by any
governmental agency, court or stock exchange, or any law, rule or regulation.

18. This Agreement shall be governed by and construed and enforced, in all respects, in
accordance with the laws of the State of Texas without regard to conflict of all principals unless
preempted by federal law, in which case federal law shall govern.

19. Except as expressly provided herein, this Agreement supersedes, replaces, and merges all
previous agreements and discussions relating to Mr. Cummins’ resignation from all positions with
Cyberonics and constitutes the entire agreement between Mr. Cummins and Cyberonics with respect to
Mr. Cummins’ resignation. The parties execute this Agreement without reliance on any
representation or promise, of any kind or character, not expressly set forth herein. This
Agreement may not be changed or terminated orally, and no change, termination, or waiver of this
Agreement or any of the provisions herein contained shall be binding unless made in writing and
signed by all parties, and in the case of Cyberonics, by an authorized officer.

20. Except with respect to injunctive relief in the event of an alleged breach of the
obligations set forth in the Employment Agreement paragraphs 10, 11 and 12 or as may be required
under the terms and conditions of any benefit plan, all disputes or controversies, if any, arising
under or in connection with this Agreement shall be settled exclusively by arbitration, conducted
before an arbitrator in Houston, Texas in accordance with the Employment Dispute Resolution rules
of the American Arbitration Association then in effect. The decision of the Arbitrator shall be
final and binding. Judgment may be entered on the Arbitrator’s award in any court having
jurisdiction. Cyberonics agrees to pay all Arbitrator’s fees and expenses incurred in connection
with the arbitration.

21. Any notices required or permitted to be given under this Agreement shall be properly made
if delivered, in the case of Cyberonics, to:

100 Cyberonics Boulevard

Houston, Texas

Attention: General Counsel

In the case of Mr. Cummins to:

916 Hickory Hollow

Houston, Texas 77024

22. Mr. Cummins shall be solely responsible for payment of all taxes incurred with respect to
the payments set forth herein, including but not limited to federal income and excise taxes subject
to Cyberonics’ obligations under federal tax laws or applicable regulations.

23. This Agreement shall be for the benefit of and binding upon the parties and their
respective heirs, personal representatives, legal representatives, successors and, as to
Cyberonics, assigns, including without limitation, any successor to Cyberonics by merger,
consolidation, sale of stock or assets, or otherwise.

In witness whereof, the parties have caused this Agreement to be executed in multiple
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one instrument, at Houston, Harris County, Texas on the Effective Date.

/S/ Robert P. Cummins

Robert P. Cummins

Cyberonics, Inc.

By:/S/ David S. WiseEX-10.2

EXHIBIT 10.2

RESIGNATION AGREEMENT

This Agreement by and between Pamela B. Westbrook (“Ms. Westbrook”) a resident of Sugar Land,
Texas, and Cyberonics, Inc. (“Cyberonics” or “Company”), a Delaware corporation, is made and
effective this 19th day of November, 2006 (“Effective Date”).

Whereas, Ms. Westbrook is employed by Cyberonics as Vice President, Finance and
Administration, and Chief Financial Officer pursuant to an Employment Agreement dated June 15, 2006
and effective through June 1, 2009 (“Employment Agreement”);

Whereas, Cyberonics has granted Ms. Westbrook stock options pursuant to agreements providing
grant dates of October 12, 1998; June 25, 2001; May 14, 2002; June 2, 2003; May 25, 2004; and
August 18, 2004 (collectively, “Stock Option Agreements”);

Whereas, Cyberonics has granted Ms. Westbrook restricted stock pursuant to an agreement
providing a grant date of June 1, 2005 (“Restricted Stock Agreement”);

Whereas, effective immediately, Ms. Westbrook desires voluntarily to resign as Vice President,
Finance and Administration, and Chief Financial Officer and all other positions she may have with
Cyberonics or any affiliated company, and Cyberonics desires to accept such resignation effective
immediately;

Whereas, in connection with Ms. Westbrook’s resignation, the parties desire to amend and
restate their rights and obligations with respect to each other;

Now, therefore, for good and valuable consideration, the sufficiency of which is hereby
acknowledged, Ms. Westbrook and Cyberonics agree:

1. To be effective immediately, Ms. Westbrook hereby resigns as Vice President, Finance and
Administration, and Chief Financial Officer and from all other positions she may hold with
Cyberonics or any affiliated company, and Cyberonics hereby accepts Ms. Westbrook’s resignation
from all such positions.

2. Within five (5) business days of the Effective Date of this Agreement, Cyberonics shall pay
Ms. Westbrook in cash three hundred thousand dollars ($300,000).

3. Cyberonics shall cause all stock options previously granted Ms. Westbrook pursuant to the
Stock Option Agreements and all shares of restricted stock previously granted to Ms. Westbrook
pursuant to the Restricted Stock Agreement which have not previously vested but would have vested
during the 12-month period following the Effective Date had she remained employed immediately to
vest on the Effective Date. All remaining unvested options and unvested restricted stock shall
terminate and be canceled on the Effective Date. All vested options shall become fully exercisable
and all shares of restricted stock shall become freely tradable, subject to such restrictions, if
any, as required by federal law or regulation or the regulation of any stock exchange. Any exercise
of such options shall be according to the terms and conditions of the Stock Option Agreements and
the stock option plans pursuant to which such options were granted; provided, however, if the
Company and its public accountants determine that it is required by U.S. Generally Accepted
Accounting Principles that the measurement date for any such options must be modified, the exercise
price for such options shall be adjusted to satisfy the requirements of the plan(s) with respect to
such modified measurement date. Such options shall remain exercisable through the 90th
day after the Effective Date, provided that, subject to approval of the Board of Directors, Ms.
Westbrook shall have no fewer than thirty (30) days to exercise such options after the Company’s
Registration Statements on Form S-8 for the applicable option plans become effective.

4. If the Company and its public accountants determine that it is required by U.S. Generally
Accepted Accounting Principles to make a restatement in the next Annual Report on Form 10-K filed
with the SEC that would have resulted in Ms. Westbrook not earning a bonus for any such period,
then Ms. Westbrook shall within five (5) business days of receiving notice of such restatement
repay to Cyberonics that portion of any cash bonus, or tender to Cyberonics the share certificates
for any bonus paid in restricted stock, that would not have been earned had the restated financial
reports been used to calculate such bonus. The notice for Cyberonics to Ms. Westbrook shall be
sent after the restatement is filed and shall contain a detailed explanation with supporting
documentation of how and why such bonus was recalculated.

5. If Ms. Westbrook elects to continue medical and dental coverage (including dependent
coverage) under Cyberonics’ medical and dental insurance programs pursuant to the Consolidated
Omnibus Budget Reconciliation Act (“COBRA”), Cyberonics shall pay the premium for such coverage
until the first annual anniversary of the Effective Date. Such coverage shall be at the same level
of coverage received by Ms. Westbrook during the last 12 months of her employment.

6. Ms. Westbrook shall receive such benefits as she may have from the Cyberonics’ pension and
welfare benefit plans according to the terms and conditions of those plans pursuant to any
elections made by Ms. Westbrook. In addition, within five (5) business days of the Effective Date
of this Agreement, Ms. Westbrook shall submit any request for reimbursement of any business
expenses incurred in the course of her duties prior to the Effective Date. Cyberonics shall
promptly review and process any such request.

7. The letter agreement regarding the Advancement of Attorney’s Fees dated October 12, 2006
between Ms. Westbrook and Cyberonics shall remain in full force and effect.

8. Sections 7, 8 and 9 of the Employment Agreement shall remain in full force and effect.

9. Except as expressly set forth herein in Paragraph 8, the Employment Agreement is superseded
and extinguished by this Agreement.

10. On reasonable notice and request of Cyberonics’ General Counsel or such other person
designated by the Board, Ms. Westbrook shall cooperate with Cyberonics in all matters related to
her employment with Cyberonics or the winding up of any pending work and the orderly transfer of
such work; any investigation or inquiry undertaken by Cyberonics, its Board or any committee of the
Board, or any governmental agency or stock exchange including without limitation the Securities
Exchange Commission, the Department of Justice and The Nasdaq Stock Market, Inc.; and with respect
to any litigation or administrative proceeding against Cyberonics or any employee, officer, or
director of Cyberonics, provided such cooperation as described above is not unduly burdensome and
does not interfere with other employment, her personal affairs or any previously scheduled
employment or business commitment of Ms. Westbrook that cannot be rescheduled. Ms. Westbrook
agrees to use her best efforts to reschedule any such commitments and Cyberonics agrees that it
will use its best efforts to attempt to minimize the amount of time it may require of Ms.
Westbrook. Cyberonics also agrees to pay Ms. Westbrook her reasonable expenses, including without
limitation, travel, legal, accounting, and other related expenses.

11. Ms. Westbrook will deliver to Cyberonics within ten (10) business days of the Effective
Date all business records in her possession, custody, or control, including without limitation all
analyses, correspondence, data, or information, memoranda, notes, records, documents, or other
materials (in whatever form maintained, whether electronic, hard copy or otherwise) composed or
received by Ms. Westbrook, solely or jointly with others, related in any manner to the past,
present, or anticipated business of Cyberonics or any affiliated company and all property owned by
Cyberonics or any affiliated company, provided, however, that in the event Cyberonics and Ms.
Westbrook enter into a consulting agreement to facilitate Cyberonics’ filing of its Form 10-K for
the fiscal year ended April 28, 2006 and its delinquent Form 10-Q, and any necessary restated
financial statements, Cyberonics may, in its sole discretion, extend the time for such delivery to
and until the termination of any such consulting agreement. Ms. Westbrook represents and agrees
that she has no claim or right, title or interest in any property designated on Cyberonics’ records
as property or assets of Cyberonics. Ms. Westbrook shall, within ten (10) business days of the
Effective Date, remove all property owned by her from Cyberonics’ premises. This paragraph does
not apply to any personal documents, records, or property of Ms. Westbrook as well as 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.

12. Except as provided herein, Ms. Westbrook does hereby release, acquit, and discharge
Cyberonics, its directors, officers, employees, agents, attorneys, and representatives, past and
present, and Cyberonics does hereby release, acquit and discharge Ms. Westbrook, from any and all
claims and from any and all causes of action of any kind or character, whether now known or not
known, either may have with respect to bonuses, compensation, expenses, remuneration, salary,
severance or wages payable under her Employment Agreement. The payments or consideration provided
in paragraphs 2 and 3 of this Agreement are in full satisfaction and compromise of any obligations
which Cyberonics may have to Ms. Westbrook for compensation or payments including without
limitation any and all claims for salary, bonuses, severance, stock, stock options or tax gross-up
payments.

13. Should any provision of this Agreement be held to be invalid or wholly or partially
unenforceable by a final, non-appealable judgment in a court of competent jurisdiction, such
holding shall not invalidate or void the remainder of this Agreement, and those portions held to be
invalid or unenforceable shall be revised and reduced in scope so as to be valid and enforceable
or, if such is not possible, then such portions shall be deemed to have been wholly excluded with
the same force and effect as if it had never been included herein.

14. The parties understand and agree that the terms of this Agreement are to compromise
doubtful and disputed claims between them, avoid litigation, and buy peace, and that no statement
or consideration herein shall be construed as an admission of any claim, such admissions being
expressly denied.

15. Ms. Westbrook and Cyberonics, its directors, officers, employees, representatives,
attorneys, and agents of Cyberonics shall not make any public or private statement with respect to
each other (including, as to Ms. Westbrook, any statement with respect to the directors, officers,
employees, representatives, attorneys, and agents of Cyberonics) which are derogatory, disparaging
or may tend to injure such person in its or their business, public or private affairs. The
foregoing obligations shall not apply to information required to be disclosed or requested by any
governmental agency, court or stock exchange, or any law, rule or regulation.

16. This Agreement shall be governed by and construed and enforced, in all respects, in
accordance with the laws of the State of Texas without regard to conflict of law principles unless
preempted by federal law, in which case federal law shall govern.

17. Except as expressly provided herein, this Agreement supersedes, replaces, and merges all
previous agreements and discussions relating to Ms. Westbrook’s resignation from all positions with
Cyberonics and constitutes the entire agreement between Ms. Westbrook and Cyberonics with respect
to Ms. Westbrook’s resignation. The parties execute this Agreement without reliance on any
representation or promise, of any kind or character, not expressly set forth herein. This
Agreement may not be changed or terminated orally, and no change, termination, or waiver of this
Agreement or any of the provisions herein contained shall be binding unless made in writing and
signed by all parties, and in the case of Cyberonics, by an authorized officer.

18. Except with respect to injunctive relief in the event of an alleged breach of the
obligations set forth in the Employment Agreement paragraph 8 or as may be required under the terms
and conditions of any benefit plan, all disputes or controversies, if any, arising under or in
connection with this Agreement shall be settled exclusively by arbitration, conducted before an
arbitrator in Houston, Texas in accordance with the Employment Dispute Resolution rules of the
American Arbitration Association then in effect. The decision of the Arbitrator shall be final and
binding. Judgment may be entered on the Arbitrator’s award in any court having jurisdiction.

19. Any notices required or permitted to be given under this Agreement shall be properly made
if delivered, in the case of Cyberonics, to:

100 Cyberonics Boulevard, Suite 600

Houston, Texas 77058

Attention: General Counsel

In the case of Ms. Westbrook to:

26 Schubach Drive

Sugar Land, Texas 77479

20. Any payments made or consideration provided pursuant to this Agreement shall be less
withholding for federal, state or local taxes as may be required by law or applicable regulation.
Cyberonics shall pay all such tax withholding to the United States Treasury or other government
account as required by statute or federal regulations. Ms. Westbrook shall be solely responsible
for payment of all taxes incurred with respect to the payments set forth herein, including but not
limited to federal income and excise taxes.

21. This Agreement shall be for the benefit of and binding upon the parties and their
respective heirs, personal representatives, legal representatives, successors and, as to
Cyberonics, assigns, including without limitation, any successor to Cyberonics by merger,
consolidation, sale of stock or assets, or otherwise.

In witness whereof, the parties have caused this Agreement to be executed in multiple
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one instrument, at Houston, Harris County, Texas on the Effective Date.

/S/ Pamela B. Westbrook

Pamela B. Westbrook

Cyberonics, Inc.

By: /S/ David S. Wise

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