Document:

Exhibit 10.7

 

AMENDMENT NO. 1

TO

SOVOS BRANDS LIMITED PARTNERSHIP

2017 EQUITY INCENTIVE PLAN

 

This AMENDMENT NO. 1, dated
as of 2/10/2021 (this “Amendment”), to that certain Sovos Brands Limited Partnership 2017 Equity Incentive Plan
(the “Plan”).

 

W I T N E S S E T H:

 

WHEREAS, SOVOS BRANDS GP LLC
(the “Board”) desires to amend the Plan pursuant to Section 6.1 of the Plan.

 

NOW THEREFORE, it is hereby
acknowledged and agreed that:

 

1.           
Defined Terms. Capitalized terms used herein, but not defined herein, have the respective meanings ascribed thereto in the
Plan.

 

2.           
Amendment.

 

(a)              
Section 2.1 of the Plan shall be, and hereby is, replaced with the following:

 

“83,614 Incentive Units are reserved
for issuance under the Plan in accordance with the terms of the Partnership Agreement. Any Incentive Units that for any reason are cancelled,
forfeited, or acquired by the Partnership (pursuant to a call, redemption or other right) either (i) for no consideration or (ii) on or
prior to January 5, 2021 shall again be available for issuance under the Plan.”

 

3.          Reference
to and Effect on the Plan. Except as specifically amended herein, the Plan shall remain in full force and effect and is hereby
ratified and confirmed. All references in the Plan to the “Plan” shall mean the Plan as amended by this Amendment.

 

4.            
Effectiveness. This Amendment shall become effective as of the date set forth above.Exhibit 10.9

 

2021 Sovos Brands Annual Incentive Plan

 

Purpose

 

The Sovos Brands 2021 Annual Incentive Plan (the “Plan”)
established by Sovos Brands Intermediate, Inc. (together with its subsidiaries, “Sovos”) is effective December 27, 2020 and
has been approved by the Sovos Board of Directors (“Board”). This Plan replaces any prior cash-based incentive plan(s).

 

The purpose of the Plan is to motivate and reward eligible employees
of Sovos and its subsidiaries (each a “Participant” and collectively, “Participants”) for the achievement of,
meeting and/or exceeding business and individual performance objectives. If the established goals for a Performance Period are met, Participants
may receive a cash bonus award for the applicable Performance Period.

 

The Plan will continue to be in effect with respect to fiscal 2021,
subject to any amendments approved by the Board.

 

Effective
Date

 

The Plan is effective as of December 27, 2020.

 

Guidelines
for Participation

 

Participation in the Plan is not automatic and is subject to the approval
of the Compensation Committee of the Board (the “Committee”) in its sole discretion. Eligibility guidelines consider:

 

		·	The employee’s scope of responsibilities, level and position; and

 

		·	The degree of direct impact that an employee may have on the financial performance and strategy of Sovos.

 

The Plan is NOT a contract of employment and does not guarantee the
right to continue to be employed by Sovos, nor does it obligate Sovos to include any employee as a Participant in the Plan.

 

Performance
Periods

 

For purposes of fiscal 2021, goals have been established for the following
periods (each, a “Performance Period”):

 

		·	The First-Half Performance Period is defined as Period 1 through Period 6 (i.e. December 27, 2020 through June 26, 2021).

 

		·	The Second-Half Performance Period is defined as Period 7 through Period 12 (i.e. June 27, 2021 through December 25, 2021).

 

     

     

    

 

		·	The Full-Year Performance Period is defined as Period 1 through Period 12 (i.e. the fiscal year beginning on December 27, 2020 and
ending on December 25, 2021).

 

First-Half
Performance Period Eligibility

 

		·	A Participant must be actively employed by Sovos prior to April 1, 2021 to be eligible to receive a bonus payment with respect to
the First-Half Performance Period.

 

		·	If a Participant was not employed as of December 27, 2020, any bonus opportunity with respect to the First-Half Performance Period
will be prorated based on the actual date of employment (provided the Participant’s start date is prior to April 1, 2021).

 

		·	A Participant shall not be entitled to a bonus payment, including a prorated payment, if not employed on the date of the bonus payout
for any reason.

 

Second-Half Period Eligibility

 

		·	A Participant must be actively employed by Sovos prior to October
1, 2021 to be eligible to receive a bonus payment with respect to the Second-Half Performance Period.

 

		·	If a Participant was not employed as of June 27, 2021, any bonus opportunity with respect to the Second-Half Performance Period will
be prorated based on the actual date of employment (provided the Participant’s start date is prior to October 1, 2021).

 

Full-Year
Performance Period Eligibility

 

		·	A Participant must be actively employed by Sovos prior to October 1, 2021 to be eligible to receive a bonus payment with respect to
the Full-Year Performance Period.

 

		·	If a Participant was not employed as of December 27, 2020, any bonus opportunity with respect to the Full-Year Performance Period
will be prorated based on the actual date of employment (provided the Participant’s start date is prior to October 1, 2021)

 

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Incentive
Award Components

 

Incentive awards are calculated based on two categories of participation:

 

		·	Shared Corporate employees (“Corporate”) are those who have a corporate or shared-services responsibility supporting
multiple businesses. Performance metrics for these participants are based on overall corporate results.

 

		·	Segment-specific employees (“Segment”) are those who primarily support a particular segment (i.e. Dinners &
Sauces Segment or Breakfast & Snacks Segment). Performance metrics for these participants are based on their respective segment’s
performance.

 

Incentive awards may also be impacted by a participant’s mid-year
or year-end performance rating.

 

Individual
Incentive Targets

 

The incentive target (% of base salary) assigned to each individual
is provided either in their offer letter or in their most recent total compensation statement.

 

Bonus
Pool Funding

 

The Sovos Board of Directors approves the Corporate and Segment performance
goals at the beginning of the year for each Performance Period.

 

At the end of each Performance Period, the Sovos Executive Team will
determine the level of achievement of such goals for such Performance Period, subject to approval by the Sovos Board of Directors. The
amount of the bonus pool to be distributed to participants is at the sole discretion of the Board of Directors and may be modified (or
not funded at all), depending on financial circumstances.

 

If Corporate or a given Segment meets its performance targets exactly,
the respective bonus pool would be funded at 100%. If performance falls short of, or exceeds, performance targets, the bonus pool funding
level would be adjusted up or down on a continuum that spans between 0% and 200%.

 

In order for the applicable bonus pool to begin to be funded,
Corporate or the given Segment must achieve a minimum threshold of at least 90% of its Performance Targets. To achieve the maximum bonus
pool funding level of %, Corporate or the given Segment must achieve 120% of its Performance Targets (as illustrated in the table below):

 

	Minimum	90% of Target Performance Metrics	50% Bonus Pool Funding Level
	Target	100% of Target Performance Metrics	100% Bonus Pool Funding Level
	Maximum	120% of Target Performance Metrics	200% Bonus Pool Funding Level

Note, below 90% = 0% bonus funding

 

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The specific performance criteria for each Performance Period are attached
as an exhibit to this Plan.

 

First-Half
and Second-Half Performance Measures and Weighting

 

The following shows the performance objectives that have been established
for the First-Half and Second-Half Performance Periods and their respective weighting:

 

	 	 	Metrics	 	Weighting	 
	Corporate	 	Net Sales Adj. EBITDA	 	 	50	%
	Participants whose work supports Shared and/or multiple brands	 	 	 	 	50	%
	Segment	 	Net Revenue Brand Contribution	 	 	50	%
	Participants with Segment specific responsibilities	 	 	 	 	50	%

 

Full-Year Performance Measures and Weighting

 

The following shows the performance objectives that have been established
for the Full-Year Performance Periods and their respective weighting:

 

	 	 	Metrics	 	Weighting	 
	Corporate / Shared Services	 	Net Revenue Adj. EBITDA	 	 	25	%
	Participants whose work supports Shared and/or multiple brands	 	Cash Flow	 	 	25	%
	 	 	 	 	 	50	%
	Segment	 	Net Revenue Brand Contribution	 	 	25	%
	Participants with Segment specific responsibilities	 	Cash Flow	 	 	25	%
	 	 	 	 	 	50	%

 

Allocation
of Bonus Pool

 

Each participant is assigned a target bonus based on the participant’s
level of responsibility. The target bonus is a percentage of the employee’s annual base salary (as in effect as of April 1, 2021
with respect to the First-Half Performance Period or October 1, 2021 with respect to the Second-Half and Full-Year Performance Periods).
Each participant’s total target bonus opportunity is divided as follows: 40% with respect to First-Half Performance Period, 40%
with respect to Second-Half Performance Period, and 20% with respect to the Full-Year Performance Period. The actual bonus payments will
be determined by modifying the target bonus opportunity for the applicable Performance Period by the weighted average level of achievement
of the established applicable goals for such Performance Period, subject to adjustment for the participant’s personal performance.

 

All such payments shall be subject to approval by the Compensation
Committee of the Board in its sole discretion.

 

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Performance Management

 

Participants may see an impact on award amounts from their individual
performance ratings. Managers and/or the Compensation Committee will have the ability to use a range of multipliers in respect to the
performance rating; however; in no event will total payments exceed total funding under the Plan. Additionally, in no event will any person
receive a payment in excess of 200% of their bonus target (as such may be pro-rated).

 

Example:

 

	Performance Rating	Guidelines for Payment (as a % of funded amount)
	5: Exceptional	115% - 125%
	4: Significantly Above	105% - 115%
	3: Expected	95% - 105%
	2: Needs Improvement	80% - 95%
	1: Unacceptable	0%

 

Payment

 

Bonus payments will be paid to the participant in a lump-sum cash payment
as soon as is practical after Performance Period financials have been finalized, the Board has determined the bonus pool amount and individual
performance reviews have been conducted. The First- Half bonus payment (if any) is expected to be paid by October 15, 2021 (but in any
event no later than December 31, 2021). The Second-Half and Full-Year bonus payments (if any) are expected to be paid by April 30, 2022
(but in any event in calendar year 2022 and no later than December 31, 2022).

 

Payments shall be deemed additional compensation to the participant,
and payroll taxes shall be withheld from payments in accordance with all applicable federal, state and local laws. A participant must
be employed by Sovos or an applicable subsidiary at the time of bonus payout to be eligible to receive the payment.

 

Termination
of Employment

 

This Plan does not create a contract of employment between Sovos or
any Sovos subsidiary and the Employee and does not limit the right of Sovos or the applicable subsidiary to discharge or terminate an
Employee for any reason, or for no reason. The award of any bonus under this Plan is completely discretionary with Sovos’ Board
of Directors, and no person shall have any claim or entitlement to be granted or to receive any bonus. Upon an Employee’s termination
of employment with Sovos or an applicable subsidiary for any reason including, but not limited to, the death or disability of the employee,
the Employee’s rights, if any, to share in the allocation of the bonus pool or receive a bonus shall terminate.

 

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Amendment
or Termination

 

Sovos reserves the right to amend or terminate the Plan at any time.
No such amendment or termination shall entitle any Employee to payment of a bonus or the right to make any claim under this Plan.

 

Administration

 

The Plan shall be administered by the Committee. The Committee may
issue rules and regulations for the administration of the Plan. All decisions of the Committee shall be final, conclusive and binding
on all Participants in the Plan.

 

At the end of the applicable Performance Periods, the Committee shall
determine the extent to which the performance goals have been attained. The Committee shall calculate the amount of the cash performance
awards earned for the Plan Year based upon the performance formula applied against the relevant performance goal(s)

 

General
Terms

 

Incentive payments will be treated as a “bonus” for the
purpose of tax withholding. Tax authorities treat “bonus” compensation differently than base compensation when calculating
withholding, which may result in higher withholding.

 

If any term or condition of this Plan is found to be in non-conformance
with an applicable law, that term or condition will be non-enforceable but will not negate or otherwise affect other terms and conditions
of the Plan.

 

There is no obligation for uniformity of treatment of Participants
or employees under the Plan. The terms and conditions of awards need not be the same with respect to each Participant. Any cash award
under the Plan shall be a one-time award which does not constitute a promise of future awards.

 

Sovos shall have the right to deduct from any payment to be made pursuant
to the Plan the amount of any Federal, state or local taxes required to be withheld.

 

This Plan shall be governed by and construed in accordance with the
laws of the State of Delaware, without giving effect to the conflict of laws provisions thereof.

 

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