Document:

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Exhibit 10.1

         2006 ATS MEDICAL MANAGEMENT INCENTIVE COMPENSATION PLAN (MICP)

The 2006 ATS Medical Management Incentive Compensation Plan (MICP) is designed
to pay, in addition to performance based annual salaries, incentive cash
compensation to management and other "key employees" who by their assigned
responsibilities contribute to the success of the Company. Incentive payments
will be based on corporate funding and achievement of individual
Objectives/Smart Goals.

1.   DEFINITION OF TERMS

Goals

     The Individual Objectives, as set forth at the beginning of each program
     year and referred to as Smart Goals, must be specific, measurable,
     achievable, related to Corporate Goals and time bound. The Board of
     Directors may amend the goals to reflect material adjustments in or changes
     to the Company's accounting policies; to reflect major corporate changes
     such as mergers, acquisitions, or divestitures; and to reflect such other
     events having a significant impact on the goals.

Base Salary

     The annual salary rates effective on the first day of the Plan year.

Participant

     Any employee or position which has been designated by the Board as a
     participant in the Plan for the year or during the year. If a particular
     employee is not covered by the MICP and has been recognized for
     extraordinary achievement, he/she may be eligible to participate in the
     Plan for that particular year at the discretion of the President/CEO.

Eligibility

     Only regular full time employees may be designated as a participant in the
     Plan.

Program Year

     The fiscal year of the corporation.

Funding

     The total dollar amounts accrued for payment in any program year. The bonus
     pool will be funded by achievement of the Company's annual operating Plan
     and will be tied to both top line and bottom line results.

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Payout

     THE ACTUAL AMOUNT TO BE PAID TO A PARTICIPANT BASED ON OPERATING RESULTS
     ACHIEVEMENT RATE COMBINED WITH INDIVIDUAL SMART GOALS PERFORMANCE. THE
     MAXIMUM PAYOUT EACH PARTICIPANT IS ELIGIBLE TO RECEIVE WILL BE COMMUNICATED
     BY HIS/HER MANAGER.

2.   DESIGNATION OF PARTICIPANTS

     The Board, upon the recommendation of the management of the Corporation,
     shall make all determinations as to the eligibility of employees and
     positions to participate in the MICP. Following the Board's determination
     of eligible participants, each participant shall be notified of eligibility
     to participate in the 2006 MICP and will be provided with a copy of the
     Plan. The 2006 Plan is designed to include officer, director, and manager
     level positions as well as employee designated as "key employees."

3.   CALCULATION AND PAYMENT OF INCENTIVE AWARDS

     Individual incentives will not be paid unless the President/CEO and the
     Compensation Committee of the Board of Directors approve each participant's
     individual incentive awards with payout contingent upon completion of the
     Company's year-end financial audit for the program year.

                                  PLAN CRITERIA

     ACHIEVEMENT OF SMART GOALS
     (20% weight)

     TOP LINE RESULTS = Revenue
     (40% weight)

     BOTTOM LINE RESULTS=Operating Income before taxes
     (40% weight)

                                  PAYOUT RATES

<TABLE>
<CAPTION>
     PLAN PERFORMANCE                                               RATIO
     ----------------                                               -----
<S>                                                                <C>
     109%                                                            182%
     105%                                                            145%
     100%                                                            100%
      95%                                                             55%
      90%                                                              9%
      89%                                                              0%
</TABLE>

     Note: Minimum requirement for bonus payment includes at least 90%
     attainment of company income plan.

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4.   PROMOTIONS

     For individuals promoted from a non-bonus to a bonus position during the
     program year, the effective salary upon assuming the new position will be
     used in calculating eligible incentive payout. Any payout will be pro rated
     beginning the first day of the month in which the individual is promoted
     into the position.

5.   DEMOTIONS

     For individuals demoted to a non-bonus position during the plan year, MICP
     payout will be pro rated based on the number of months in the bonus
     position.

6.   TERMINATION OF EMPLOYMENT

     In the event that any participant shall cease to be a full time employee
     during any year in which he/she is participating in the Plan, such
     participant shall be entitled to receive no incentive compensation for such
     year. If he/she terminates after the Plan year but prior to the payout, the
     participant remains entitled to receive incentive compensation. An
     exception would be if the individual were subject to termination "for
     cause" if such "cause" took place during the period covered by the MICP.

7.   AMENDMENT OF THE PLAN

     The Board may, from time to time, make amendments to the Plan as it
     believes appropriate and may terminate the Plan at any time, provided that
     no such amendment or termination will affect the right of any participant
     to receive incentive compensation in accordance with the terms of the Plan
     for the portion of any year up to the date of the amendment or termination.

8.   MISCELLANEOUS

     Nothing contained in the MICP shall be construed to confer upon any
     employee any right to continue in the employ of the Company or restrict the
     Company's right to terminate his/her employment at any time.

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               ESTABLISHMENT OF INDIVIDUAL OBJECTIVES/SMART GOALS

                       (Specific, Measurable, Achievable,
                   Related to Corporate Goals and Time Bound.)

In establishing individual objectives, the following guidelines shall be used:

-    Each objective should be clear, concise, and measurable (time, cost, and
     task accomplishment).

-    Each objective should be a precise written statement, which is discussed
     and agreed to by the individual and the manager.

-    Individual objectives should measure accomplishment and not effort.

-    Individuals will have four (4) Objectives/Smart Goals.

Before a participant may receive an incentive award, it will be necessary for
his/her immediate manager to:

-    Submit written measurable objectives on the appropriate form prior to the
     commencement of the program year. These objectives will be reviewed and
     approved by the President/CEO and Director of Human Resources.

-    Submit a documented evaluation of results, on a quarterly basis, to the
     President/CEO.

-    Modifications or adjustments to the original objectives must be reviewed by
     the participant and his/her manager and then submitted to the
     President/CEO.

-    Submit the year-end results against objectives within one month following
     the end of the program year. The President/CEO and the Director of Human
     Resources will approve these.<PAGE>

Exhibit 10.2

                       Form of Change In Control Agreement

                                  ______, 200_

[Name of Officer]
[Home Address]

Dear ________:

ATS Medical, Inc. (the "Company") recognizes that your contribution to the
growth and success of the Company will be substantial and therefore desires to
assure the Company of your continued employment. In this connection, the Board
of Directors of the Company (the "Board") recognizes that, as is the case with
many publicly held companies, the possibility of a change in control may exist
and that such possibility, and the uncertainty and questions which it may raise
among management, may result in the departure or distraction of management
personnel to the detriment of the Company and its shareholders.

The Board has determined that appropriate steps should be taken to reinforce and
encourage the continued attention and dedication of members of the Company's
management, including yourself, to their assigned duties without distraction in
the face of potentially disturbing circumstances arising from the possibility of
a change in control of the Company.

In order to induce you to remain in the employ of the Company, the Company
agrees that you shall receive the severance benefits set forth in this letter
agreement ("Agreement") in the event your employment with the Company is
terminated subsequent to a "Change in Control" (as defined in Section 2 hereof)
under the circumstances described below:

1.   Term of Agreement. This Agreement shall commence on the date hereof and
     shall continue in effect through December 31, 200_; provided, however, that
     commencing on January 1, 200_ and each January 1 thereafter, the term of
     this Agreement shall automatically be extended for one additional year
     unless, not later than January 1 of the preceding year, the Company shall
     have given notice that it does not wish to extend this Agreement; and
     provided further, that notwithstanding any such notice by the Company not
     to extend, this Agreement shall continue in effect for a period of 24
     months beyond the term provided herein if a change in control of the
     Company (as defined in Section 2 hereof) shall have occurred during such
     term.

2.   Change in Control. No benefits shall be payable hereunder unless there
     shall have been a Change in Control of the Company, as set forth below, and
     your employment by the Company shall have been terminated in accordance
     with Section 3 below. For purposes

<PAGE>

     of this Agreement, a "Change in Control of the Company" shall be deemed to
     have occurred if (A) a change in control occurs of a nature that would be
     required to be reported in response to Item 6(e) of Schedule 14A of
     Regulation 14A promulgated under the Securities Exchange Act of 1934, as
     amended (the "Exchange Act"), whether or not the Company is then subject to
     such reporting requirement; (B) any "person" (as such term is used in
     Sections 13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial
     owner" (as defined in Rule 13d-3 promulgated under the Exchange Act),
     directly or indirectly, of securities of the Company representing 35% or
     more of the combined voting power of the Company's then outstanding
     securities; (C) individuals who at the date hereof constitute the Board of
     Directors of the Company cease for any reason to constitute at least a
     majority thereof (unless the election or the nomination for election of
     each new director was approved by a vote of at least two-thirds of
     directors then still in office who were directors at the beginning of the
     period and/or their successor directors who were recommended or elected to
     succeed a beginning director by at least two-thirds of the directors who
     were directors at the beginning of the period); or (D) the shareholders of
     the Company approve (i) any consolidation or merger of the Company in which
     the Company is not the continuing or surviving corporation or pursuant to
     which shares of Company stock would be converted into cash, securities or
     other property, other than a merger of the Company in which shareholders
     immediately prior to the merger have the same proportionate ownership of
     stock of the surviving corporation immediately after the merger; (ii) any
     sale, lease, exchange or other transfer (in one transaction or a series of
     related transactions) of all or substantially all of the assets of the
     Company; or (iii) any plan of liquidation or dissolution of the Company.
     Notwithstanding the foregoing, none of the transactions contemplated by the
     Agreement and Plan of Merger dated as of January 23, 2006 by and among the
     Company, Seabiscuit Acquisition Corp., 3F Therapeutics, Inc. and Mr. Boyd
     Cox shall be deemed to constitute a Change in Control of the Company under
     this Agreement

3.   Termination Following a Change in Control. If a Change in Control shall
     have occurred, you shall be entitled to the benefits provided in Section 4
     hereof upon any termination of your employment within 24 months following
     the Change in Control unless such termination is (A) because of your death,
     (B) by the Company for Cause (as defined below) or (C) by you other than
     for Good Reason (as defined below).

          (i) Cause. Termination by the Company of your employment for "Cause"
          shall mean termination upon (A) the willful and continued failure by
          you to substantially perform your duties with the Company (other than
          any such failure resulting from your disability or from termination by
          you for Good Reason), after

<PAGE>

          a demand for substantial performance is delivered to you that
          specifically identifies the manner in which the Company believes that
          you have not substantially performed your duties, and you have failed
          to resume substantial performance of your duties on a continuous basis
          within 30 days of receiving such demand, (B) the willful engaging by
          you in conduct which is demonstrably and materially injurious to the
          Company, monetarily or otherwise or (C) your conviction of a felony
          which impairs your ability substantially to perform your duties with
          the Company. For purposes of this Subsection, no act, or failure to
          act, on your part shall be deemed "willful" unless done, or omitted to
          be done, by you not in good faith and without reasonable belief that
          your action or omission was in the best interest of the Company.
          Failure to perform your duties with the Company during any period of
          disability shall not constitute Cause.

          (ii) Good Reason. Termination by you of your employment for "Good
          Reason" shall mean termination within 24 months following a Change in
          Control upon the occurrence of any one or more of the following:

               (A) the assignment to you of any duties inconsistent in any
               respect with your position (including status, offices, titles,
               and reporting requirements), authorities, duties, or other
               responsibilities as in effect immediately prior to the Change in
               Control or any other action of the Company which results in a
               diminishment in such position, authority, duties, or
               responsibilities, other than an insubstantial and inadvertent
               action which is remedied by the Company promptly after receipt of
               notice thereof given by you;

               (B) a reduction by the Company in your base salary as in effect
               on the date hereof and as the same shall be increased from time
               to time hereafter;

               (C) the Company's requiring you to be based at a location in
               excess of thirty-five (35) miles from the location of your
               principal office immediately prior to the Change in Control;

               (D) the failure by the Company to (a) continue in effect any
               material compensation or benefit plan, program, policy or
               practice in which you were participating at the time of the
               Change in Control or (b) provide you with compensation and
               benefits at least equal (in terms of benefit levels and/or reward
               opportunities) to those provided for under each employee benefit
               plan, program, policy and practice as in effect immediately prior
               to

<PAGE>

               the Change in Control (or as in effect following the Change in
               Control, if greater); and

               (E) the failure of the Company to obtain a satisfactory agreement
               from any successor to the Company to assume and agree to perform
               this Agreement, as contemplated in Section 7 hereof.

          Your right to terminate your employment pursuant to this Subsection
          shall not be affected by your incapacity due to physical or mental
          illness. Your continued employment shall not constitute consent to, or
          a waiver of rights with respect to, any circumstance constituting Good
          Reason hereunder. Termination by you of your employment for Good
          Reason as defined in this Subsection 3(ii) shall constitute
          termination for Good Reason for all purposes of this Agreement.

          (iii) Notice of Termination. Any purported termination of your
          employment by the Company or by you (other than by reason of your
          death) within 24 months following the month in which a Change in
          Control occurs, shall be communicated by Notice of Termination to the
          other party hereto in accordance with Section 8 hereof. Failure by you
          to provide Notice of Termination shall not limit any of your rights
          under this Agreement except to the extent the Company can demonstrate
          that it suffered actual damages by reason of such failure. For
          purposes of this Agreement, a "Notice of Termination" shall mean a
          written notice which shall indicate the specific termination provision
          in this Agreement relied upon and the Date of Termination (as defined
          below) and shall set forth in reasonable detail the facts and
          circumstances claimed to provide a basis for termination of your
          employment under the provision so indicated.

          (iv) Date of Termination. "Date of Termination" shall mean the date
          specified in the Notice of Termination (except in the case of your
          death, in which case Date of Termination shall be the date of death);
          provided, however, that if your employment is terminated by the
          Company other than for Cause, the date specified in the Notice of
          Termination shall be at least 30 days from the date the Notice of
          Termination is given to you and if your employment is terminated by
          you for Good Reason, the date specified in the Notice of Termination
          shall not be more than 60 days from the date the Notice of Termination
          is given to the Company.

          (v) Termination Prior to a Change in Control. Any termination of your
          employment by the Company without Cause prior to a Change in Control
          which occurs at the request or insistence of any person (other than
          the Company) related to the Change in Control shall be deemed to have
          occurred after the Change in Control for purposes of this Agreement.

<PAGE>

4.   Compensation Upon Termination. Subject to paragraph 5 of this Agreement,
     following a Change in Control, upon termination of your employment during
     the term of this Agreement you shall be entitled to the following benefits:

          (i) If your employment by the Company shall be terminated (y) by the
          Company for any reason other than Cause, or (z) by you for Good
          Reason, you shall be entitled to the benefits provided below:

               (A) the Company shall pay you your full base salary through the
               Date of Termination at the rate in effect at the time Notice of
               Termination is given;

               (B) the Company will pay as severance benefits to you, not later
               than 30 days following the Date of Termination, a lump sum
               severance payment equal to two times your annual base salary in
               effect at the time Notice of Termination is given or immediately
               prior to the date of the Change in Control, whichever is greater;
               and

               (C) for a period of 24 months after the Date of Termination, the
               Company will arrange to provide you with health and dental
               benefits substantially similar in design and cost (to you) as
               such benefits available to you immediately prior to the Notice of
               Termination; provided that such benefits shall be discontinued to
               the extent that you obtain employment providing comparable health
               and/or dental benefits during such 24-month period.

          (ii) The payments provided for in Section 4(i)(A) and (B) above shall
          be made not later than 30 days following the Date of Termination;
          provided, however, that if the amounts of such payments cannot be
          finally determined on or before such day, the Company shall pay to you
          on such day an estimate as determined in good faith by the Company of
          the minimum amount of such payments and shall pay the remainder of
          such payments (together with interest from the date of such estimated
          payment at the rate provided in Section 1274(b)(2)(B) of the Internal
          Revenue Code of 1986, as amended (the "Code")) as soon as the amount
          thereof can be determined but in no event later than 45 days after the
          Date of Termination.

          In the event that the amount of the estimated payment exceeds the
          amount subsequently determined to have been due, such excess shall
          constitute a loan by the Company to you payable no later than 30 days
          after demand by the Company

<PAGE>

          (together with interest from the date of such estimated payment at the
          rate provided in Section 1274(b)(2)(B) of the Code).

          (iii) The Company shall also pay to you any legal fees and expenses
          incurred by you (A) as a result of successful litigation against the
          Company for nonpayment of any benefit hereunder or (B) in connection
          with any dispute with any Federal, state or local governmental agency
          with respect to benefits claimed under this Agreement. If you utilize
          arbitration to resolve any such dispute, the Company will pay any
          legal fees and expenses incurred by you in connection therewith.

          (iv) You shall not be required to mitigate the amount of any payment
          provided for in this Section 4 by seeking other employment or
          otherwise, nor shall the amount of any payment provided for in this
          Section 4 be reduced by any compensation earned by you as the result
          of employment by another employer after the Date of Termination, or
          otherwise, except as set forth in Section 4(i)(C) hereof.

          (v) Notwithstanding the foregoing, if and to the extent that you are
          entitled under any other agreement with the Company to receive any
          payment of severance upon termination, the amount payable to you
          pursuant to Section 4(i)(B) above shall be reduced by the amount of
          such other severance payment.

          (vi) Notwithstanding the foregoing, the Company shall, to the extent
          necessary and only to the extent necessary, modify the timing of
          delivery of severance benefits if the Company determines that the
          timing would subject the severance benefits to any additional tax or
          interest assessed under Section 409A of the Code. In such event, the
          payments will occur as soon as practicable without causing the
          severance benefits to trigger such additional tax or interest under
          Section 409A of the Code. In addition, if your base salary
          continuation under Section 4(i)(A) above is delayed to comply with
          Section 409A of the Code, the Company shall pay any missed payments in
          a single lump sum at the time your base salary continuation commences.

5.   Limitation on Payments. In the event that any payment or benefit received
     or to be received by you in connection with a change in control of the
     Company or a termination of your employment (whether payable pursuant to
     the terms of this Agreement or any other plan, arrangement or agreement
     with the Company or with any person constituting a member of an "affiliated
     group" (as defined in Section 280G(d)(5) of the Code) which includes the
     Company or with any person whose actions result in a change in control of
     the Company (which shall be deemed to include any member of an affiliated
     group as

<PAGE>

     defined above)) (collectively with the amounts payable under this
     Agreement, "Total Payments") would not be deductible (in whole or in part)
     by the Company, an Affiliate or other person making such payment or
     providing such benefit solely as a result of Section 280G of the Code, the
     payments under this Agreement shall be reduced until no portion of the
     Total Payments is not deductible as a result of Section 280G of the Code,
     or the payments under this Agreement are reduced to zero. For purposes of
     this limitation: (i) no portion of the Total Payments the receipt or
     enjoyment of which you shall have effectively waived pursuant to Section
     280G of the Code in writing prior to the date of payment of the payments
     under this Agreement shall be taken into account, (ii) no portion of the
     Total Payments shall be taken into account which in the opinion of tax
     counsel selected by the Company's independent auditors and acceptable to
     you does not constitute a "parachute payment" within the meaning of Section
     280G(b)(2) of the Code, (iii) the payments under this Agreement shall be
     reduced only to the extent necessary so that the Total Payments (other than
     those referred to in clause (ii)) in their entirety constitute reasonable
     compensation within the meaning of Section 280G(b)(4)(B) of the Code, in
     the opinion of the tax counsel referred to in clause (ii); and (iv) the
     value of any non-cash benefit or any deferred cash payment included in the
     Total Payments shall be determined by the Company's independent auditors in
     accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

6.   Nonexclusivity of Rights. Nothing in this Agreement shall prevent or limit
     your continuing or future participation in any benefit, bonus, incentive,
     retirement or other plan or program provided by the Company and for which
     you may qualify, nor shall anything herein limit or reduce such rights as
     you may have under any other agreement with, or plan, program, policy or
     practice of, the Company. Amounts which are vested benefits or which you
     are otherwise entitled to receive under any agreement with, or plan,
     program, policy or practice of, the Company (including, without limitation,
     the cash-out of unused vacation days upon termination of employment) shall
     be payable in accordance with such agreement, plan, program, policy or
     practice, except as explicitly modified by this Agreement.

7.   Successors.

          (i) The Company will require any successor (whether direct or
          indirect, by purchase, merger, consolidation, or otherwise) to all or
          substantially all of the business and/or assets of the Company or of
          any division or subsidiary thereof employing you to expressly assume
          and agree to perform this Agreement in the same manner and to the same
          extent that the Company would be required to perform if no such
          succession had taken place. Failure of the Company to obtain

<PAGE>

          such assumption and agreement prior to the effectiveness of any such
          succession shall be a breach of this Agreement and shall entitle you
          to compensation from the Company in the same amount and on the same
          terms as you would be entitled hereunder if you terminated your
          employment for Good Reason following a Change in Control, except that
          for purposes of implementing the foregoing, the date on which any such
          succession becomes effective shall be deemed the Date of Termination
          and Notice of Termination shall be deemed to have been given on such
          date.

          (ii) This Agreement shall inure to the benefit of and be enforceable
          by your personal or legal representatives, executors, administrators,
          successors, heirs, distributees, devisees, and legatees. If you should
          die while any amount would still be payable to you hereunder if you
          had continued to live, all such amounts, unless otherwise provided
          herein, shall be paid in accordance with the terms of this Agreement
          to your devisee, legatee or other designee or, if there is no such
          designee, to your estate or, if no estate, in accordance with
          applicable law.

8.   Notice. For the purpose of this Agreement, notices and all other
     communications provided for in the Agreement shall be in writing and shall
     be deemed to have been duly given when delivered or mailed by United States
     registered mail, postage prepaid, addressed to the other party as follows:

          If to the Company, to:
             ATS Medical, Inc.
             Attention: Corporate Secretary
             3905 Annapolis Lane, Suite 105
             Minneapolis, Minnesota 55447

          If to you, to:
             [Name of Officer]
             [Home Address]

     Either party to this Agreement may change its address for purposes of this
     Section 8 by giving 15 days' prior notice to the other party hereto.

9.   Miscellaneous. No provision of this Agreement may be modified, waived or
     discharged unless such waiver, modification or discharge is agreed to in
     writing and signed by you and such officer as may be specifically
     designated by the Board. The validity, interpretation, construction, and
     performance of this Agreement shall be governed by the laws of the State of
     Minnesota.

<PAGE>

10.  Validity; Integration. The invalidity or unenforceability of any provision
     of this Agreement shall not affect the validity or enforceability of any
     other provision of this Agreement, which shall remain in full force and
     effect. This Agreement represents the entire agreement between the parties
     as to the subject matter hereof and supersedes and replaces any prior
     agreements, written or oral, between the parties hereto specifically with
     respect to severance payments triggered by termination of employment after
     a change in control.

11.  Counterparts. This Agreement may be executed in several counterparts, each
     of which shall be deemed to be an original but all of which together will
     constitute one and the same instrument.

12.  Arbitration. If you so elect, any dispute or controversy arising under or
     in connection with this Agreement shall be settled exclusively by
     arbitration in accordance with the rules of the American Arbitration
     Association then in effect. Judgment may be entered on the arbitrator's
     award in any court having jurisdiction; provided, however, that you shall
     be entitled to seek specific performance of your right to be paid until the
     Date of Termination during the pendency of any dispute or controversy
     arising under or in connection with this Agreement. If you do not elect
     arbitration, you may pursue any and all legal remedies available to you.

13.  Effective Date. This Agreement shall become effective as of the date set
     forth above.

14.  Employment. This Agreement does not constitute a contract of employment or
     impose on the Company any obligation to retain you as an employee, to
     continue your current employment status or to change any employment
     policies of the Company.

<PAGE>

If this letter sets forth our agreement on the subject matter hereof, kindly
sign and return to the Company the enclosed copy of this letter which will then
constitute our agreement on this subject.

Sincerely,

ATS MEDICAL, INC.

By
   ----------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

Agreed to this       day
               -----
of           , 200
   ----------     -

By
   ----------------------------------
Name:
      -------------------------------

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