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                                                                    EXHIBIT 10.1

                             FIRST AMENDMENT TO THE
                   CYBERONICS, INC. 1988 INCENTIVE STOCK PLAN

         WHEREAS, there is reserved to the Board of Directors ("Board") of
Cyberonics, Inc. in Section 13 of the Cyberonics, Inc. 1988 Incentive Stock Plan
(the "Plan") the right to amend the Plan, subject to certain restrictions set
forth therein; and

         WHEREAS, the Board deems it advisable to amend the Plan in the manner
hereafter set forth;

         NOW, THEREFORE, the second paragraph of Section 11 of the Plan is
hereby amended effective as of October 2, 2000, to read as follows:

         Notwithstanding anything in the Plan or any award agreement to the
contrary, in the event of a Change of Control (as defined below), all Options
and Stock Purchase Rights shall automatically become fully vested and
exercisable immediately prior to the Change of Control or for such earlier
period as the Committee may provide. A "Change of Control" means the happening
of any of the following events:

         (i)     the acquisition by any "person," as such term is used in
         Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
         amended (the "Exchange Act"), other than the Company, a subsidiary of
         the Company or a Company employee benefit plan, of "beneficial
         ownership" (as defined in Rule 13d-3 under the Exchange Act), directly
         or indirectly, of securities of the Company representing 50% or more of
         the combined voting power of the Company's then outstanding securities
         entitled to vote generally in the election of directors; or

         (ii)    the consummation of a reorganization, merger, consolidation or
         other form of corporate transaction or series of transactions, in each
         case, with respect to which persons who were the shareholders of the
         Company immediately prior to such reorganization, merger or
         consolidation or other transaction do not, immediately thereafter, own
         more than 50% of the combined voting power entitled to vote generally
         in the election of directors of the reorganized, merged or consolidated
         company's then outstanding voting securities in substantially the same
         proportions as their ownership immediately prior to such event; or

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         (iii)   the sale or disposition by the Company of all or substantially
         all the Company's assets; or

         (iv)    a change in the composition of the Board of Directors of the
         Company, as a result of which fewer than a majority of the directors
         are Incumbent Directors, unless prior to such date the Incumbent
         Directors, by a majority vote, waive such changes in the Board of
         Directors as constituting a Change of Control. "Incumbent Directors"
         shall mean directors who either (A) are directors of the Company as of
         October 2, 2000, or (B) are elected, or nominated for election,
         thereafter to the Board of Directors of the Company with the
         affirmative votes of at least a majority of the Incumbent Directors at
         the time of such election or nomination, but "Incumbent Director" shall
         not include an individual whose election or nomination is in connection
         with (i) an actual or threatened election contest (as such terms are
         used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
         Act) or an actual or threatened solicitation of proxies or consents by
         or on behalf of a Person other than the Board or (ii) a plan or
         agreement to replace a majority of the then Incumbent Directors; or

         (v)     the  approval  by the Board of  Directors  or the  stockholders
         of the  Company of a complete or substantially complete liquidation or
         dissolution of the Company.

         In addition to, or in lieu of, any other provision of the Plan, the
Committee, with the approval of a majority of the Incumbent Directors, may
provide that all Options and Stock Purchase Rights not exercised immediately
prior to the Change of Control shall (x) terminate on such Change of Control,
unless such Change of Control is described in clause (iv) above, (y) be assumed
by the successor (a parent thereof) in any such merger or other corporate
transaction, or (z) be surrendered in exchange for equivalent substitution
options or awards from the successor (or a parent thereof).

         Except as amended and modified hereby, the Plan shall continue in full
force and effect and the Plan and this amendment shall be read, take and
construed as one and the same instrument.

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                                                                    EXHIBIT 10.2

                             FIRST AMENDMENT TO THE
                      CYBERONICS, INC. AMENDED AND RESTATED
                             1996 STOCK OPTION PLAN

         WHEREAS, there is reserved to the Board of Directors ("Board") of
Cyberonics, Inc. in Section 14 of the Cyberonics, Inc. Amended and Restated 1996
Stock Option Plan (the "Plan") the right to amend the Plan, subject to certain
restrictions set forth therein; and

         WHEREAS, the Board deems it advisable to amend the Plan in the manner
hereafter set forth;

         NOW, THEREFORE, Section 12(c) of the Plan is hereby amended effective
as of October 2, 2000, to read as follows:

         Notwithstanding anything in the Plan or any option agreement to the
contrary, in the event of a Change of Control (as defined below), all Options
shall automatically become fully vested and exercisable immediately prior to the
Change of Control or for such earlier period as the Administrator may provide. A
"Change of Control" means the happening of any of the following events:

         (i)    the acquisition by any "person," as such term is used in
         Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
         amended (the Exchange Act"), other than the Company, a subsidiary of
         the Company or a Company employee benefit plan, of "beneficial
         ownership" (as defined in Rule 13d-3 under the Exchange Act), directly
         or indirectly, of securities of the Company representing 50% or more of
         the combined voting power of the Company's then outstanding securities
         entitled to vote generally in the election of directors; or

         (ii)   the consummation of a reorganization, merger, consolidation or
         other form of corporate transaction or series of transactions, in each
         case, with respect to which persons who were the shareholders of the
         Company immediately prior to such reorganization, merger or
         consolidation or other transaction do not, immediately thereafter, own
         more than 50% of the combined voting power entitled to vote generally
         in the election of directors of the reorganized, merged or consolidated
         company's then outstanding voting securities in substantially the same
         proportions as their ownership immediately prior to such event; or

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         (iii)  the sale or disposition by the Company of all or substantially
         all the Company's assets; or

         (iv)   a change in the composition of the Board of Directors of the
         Company, as a result of which fewer than a majority of the directors
         are Incumbent Directors. "Incumbent Directors" shall mean directors who
         either (A) are directors of the Company as of October 2, 2000, or (B)
         are elected, or nominated for election, thereafter to the Board of
         Directors of the Company with the affirmative votes of at least a
         majority of the Incumbent Directors at the time of such election or
         nomination, but "Incumbent Director" shall not include an individual
         whose election or nomination is in connection with (i) an actual or
         threatened election contest (as such terms are used in Rule 14a-11 of
         Regulation 14A promulgated under the Exchange Act) or an actual or
         threatened solicitation of proxies or consents by or on behalf of a
         Person other than the Board or (ii) a plan or agreement to replace a
         majority of the then Incumbent Directors; or

         (v)    the  approval  by the Board of  Directors  or the  stockholders
         of the  Company of a complete or substantially complete liquidation or
         dissolution of the Company.

         In addition to, or in lieu of, any other provision of the Plan, the
Administrator, with the approval of a majority of the Incumbent Directors, may
provide that all Options not exercised immediately prior to the Change of
Control shall (x) terminate on such Change of Control, unless such Change of
Control is described in clause (iv) above, (y) be assumed by the successor (a
parent thereof) in any such merger or other corporate transaction, or (z) be
surrendered in exchange for equivalent substitution options or awards from the
successor (or a parent thereof).

         Except as amended and modified hereby, the Plan shall continue in full
force and effect and the Plan and this amendment shall be read, take and
construed as one and the same instrument.

                                       2<PAGE>   1
                                                                    EXHIBIT 10.3

                             FIRST AMENDMENT TO THE
                        CYBERONICS, INC. 1997 STOCK PLAN

         WHEREAS,  there is reserved to the Board of Directors  ("Board") of
Cyberonics, Inc. in Section 15 of the Cyberonics, Inc. 1997 Stock Plan (the
"Plan") the right to amend the Plan, subject to certain restrictions set forth
therein; and

         WHEREAS, the Board deems it advisable to amend the Plan in the manner
hereafter set forth;

         NOW, THEREFORE, Sections 13 (b), (c) and (d) of the Plan are deleted
effective as of October 2, 2000, and replaced by a new Section 13(b) to read as
follows:

         Notwithstanding anything in the Plan or any award agreement to the
contrary, in the event of a Change of Control (as defined below), all Options
and Stock Rights shall automatically become fully vested and exercisable
effective immediately prior to the Change of Control or for such earlier period
as the Committee may provide. A "Change of Control" means the happening of any
of the following events:

         (i)   the acquisition by any "person," as such term is used in Sections
         13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
         "Exchange Act"), other than the Company, a subsidiary of the Company or
         a Company employee benefit plan, of "beneficial ownership" (as defined
         in Rule 13d-3 under the Exchange Act), directly or indirectly, of
         securities of the Company representing 50% or more of the combined
         voting power of the Company's then outstanding securities entitled to
         vote generally in the election of directors; or

         (ii)  the consummation of a reorganization, merger, consolidation or
         other form of corporate transaction or series of transactions, in each
         case, with respect to which persons who were the shareholders of the
         Company immediately prior to such reorganization, merger or
         consolidation or other transaction do not, immediately thereafter, own
         more than 50% of the combined voting power entitled to vote generally
         in the election of directors of the reorganized, merged or consolidated
         company's then outstanding voting securities in substantially the same
         proportions as their ownership immediately prior to such event; or

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         (iii) the sale or disposition by the Company of all or substantially
         all the Company's assets; or

         (iv)  a change in the composition of the Board of Directors of the
         Company, as a result of which fewer than a majority of the directors
         are Incumbent Directors. "Incumbent Directors" shall mean directors who
         either (A) are directors of the Company as of October 2, 2000, or (B)
         are elected, or nominated for election, thereafter to the Board of
         Directors of the Company with the affirmative votes of at least a
         majority of the Incumbent Directors at the time of such election or
         nomination, but "Incumbent Director" shall not include an individual
         whose election or nomination is in connection with (i) an actual or
         threatened election contest (as such terms are used in Rule 14a-11 of
         Regulation 14A promulgated under the Exchange Act) or an actual or
         threatened solicitation of proxies or consents by or on behalf of a
         Person other than the Board or (ii) a plan or agreement to replace a
         majority of the then Incumbent Directors; or

         (v)   the  approval  by the Board of  Directors  or the  stockholders
         of the  Company of a complete or substantially complete liquidation or
         dissolution of the Company.

         In addition to, or in lieu of, any other provision of the Plan, the
Committee, with the approval of a majority of the Incumbent Directors, may
provide that all Options and Stock Rights not exercised immediately prior to the
Change of Control shall (x) terminate on such Change of Control, unless such
Change of Control is described in clause (iv) above, (y) be assumed by the
successor (a parent thereof) in any such merger or other corporate transaction,
or (z) be surrendered in exchange for equivalent substitution options or awards
from the successor (or a parent thereof).

         Except as amended and modified hereby, the Plan shall continue in full
force and effect and the Plan and this amendment shall be read, take and
construed as one and the same instrument.

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