Document:

Exhibit 10.7

 

THIS PROMISSORY NOTE (THIS “NOTE”)
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THIS NOTE HAS BEEN
ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE
SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE MAKER THAT SUCH REGISTRATION IS NOT
REQUIRED.  

 

PROMISSORY NOTE

 

	Principal Amount:  Up to $300,000	Dated as of April 28, 2021

 

Monterey Bio Acquisition Corporation, a
Delaware corporation (the “Maker”), promises to pay to the order of NorthStar Bio Ventures, LLC, a Delaware limited
liability company, or its registered assigns or successors in interest (the “Payee”),
or order, the principal sum of Three Hundred Thousand Dollars ($300,000), or such lesser amount as shall have been advanced by Payee to
Maker and shall remain unpaid under this Note, in lawful money of the United States of America, on the terms and conditions described
below.  All payments on this Note shall be made by check or wire transfer of immediately available funds or as otherwise determined
by the Maker to such account as the Payee may from time to time designate by written notice in accordance with the provisions of this
Note.

 

1.       Principal. The
principal balance of Note shall be payable on the earlier of: (i) September 30, 2021 and (ii) the date on which Maker consummates an initial
public offering of its securities (the “IPO”). The principal balance may be prepaid at any time. Under no circumstances
shall any individual, including but not limited to any officer, director, employee or shareholder of the Maker, be obligated personally
for any obligations or liabilities of the Maker hereunder.

 

2.       
Interest. No interest shall accrue on the unpaid principal balance of this Note.

 

3.       Drawdown
Requests. The principal of this Note may be drawn down from time to time prior to the earlier of: (i) September 30, 2021 and
(ii) the date on which Maker consummates the IPO, upon request from Maker to Payee (each, a “Drawdown Request”). Payee
shall fund each Drawdown Request within two (2) business days after receipt of a Drawdown Request; provided, however, that the
maximum amount of drawdowns collectively under this Note is Three Hundred Thousand Dollars ($300,000). Once an amount is drawn down under
this Note, it shall not be available for future Drawdown Requests even if prepaid. No fees, payments or other amounts shall be due to
Payee in connection with, or as a result of, any Drawdown Request by Maker.

 

4.       Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under
this Note, including (without limitation) reasonable attorney’s fees, then to the payment in full of any late charges and finally
to the reduction of the unpaid principal balance of this Note.

 

5.       Events
of Default. The following shall constitute an event of default (“Event of Default”):

 

(a)       Failure
to Make Required Payments. Failure by Maker to pay the principal amount due pursuant to this Note within five (5) business days of
the date specified in Section 1 above.

 

(b)       Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization,
rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or the
making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts become
due, or the taking of corporate action by Maker in furtherance of any of the foregoing.

 

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(c)       Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker in an
involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation
of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days.

 

6.       Remedies.

 

(a)       Upon
the occurrence of an Event of Default specified in Section 5(a) hereof, Payee may, by written notice to Maker, declare this Note to be
due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable thereunder, shall become
immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived,
anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)       Upon
the occurrence of an Event of Default specified in Sections 5(b) or 5(c), the unpaid principal balance of this Note, and all other sums
payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action on the part
of Payee.

 

7.       Waivers. Maker
and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest, and
notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under the terms
of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property, real or personal,
or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution, or providing for
any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any real estate that may
be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may be sold upon any such writ
in whole or in part in any order desired by Payee.

 

8.       Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party,
and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to
by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by Payee with respect
to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors, or sureties may become parties
hereto without notice to Maker or affecting Maker’s liability hereunder.

 

9.       Notices. 
All notices, statements or other documents which are required or contemplated by this Agreement shall be in writing and delivered:
(i) personally or sent by first class registered or certified mail, overnight courier service to the address designated in writing
by such party, (ii) by facsimile to the number most recently provided to such party or such other address or fax number as may be
designated in writing by such party or (iii) by electronic mail, to the electronic mail address most recently provided to such party
or such other electronic mail address as may be designated in writing by such party.  Any notice or other communication so
transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business day following
receipt of written confirmation, if sent by facsimile or electronic mail, one (1) business day after delivery to an overnight
courier service or five (5) days after mailing if sent by mail.

 

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10.       Construction. THIS
NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS
THEREOF.

 

11.       Severability. Any
provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

12.       Trust
Waiver.  Notwithstanding anything herein to the contrary, the Payee hereby waives any and all right, title, interest or
claim of any kind (“Claim”) in or to any distribution of or from the trust account to be established in which the proceeds
of the IPO and the proceeds of the sale of the units issued in private placements to occur prior to the consummation of the IPO are to
be deposited, as described in greater detail in the registration statement and prospectus to be filed with the Securities and Exchange
Commission in connection with the IPO, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against
the trust account for any reason whatsoever.

 

13.       Amendment;
Waiver.  Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of
the Maker and the Payee.

 

14.       Assignment.  No
assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of law or otherwise)
without the prior written consent of the other party hereto and any attempted assignment without the required consent shall be void.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF,
Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year first
above written.

 

	 	MONTEREY
    BIO ACQUISITION CORPORATION
	 	 
	 	By:	/s/
    Sanjeev Satyal
	 	Name:
    Sanjeev Satyal
	 	Title:
      Chief Executive Officer

 

[SIGNATURE
PAGE TO PROMISSORY NOTE]Exhibit 10.8

 

[●], 2021

 

Monterey Bio Acquisition Corporation

17 State Street

21st Floor

New York, NY 10004

 

Ladies and Gentlemen:

 

Monterey Bio Acquisition Corporation
(the “Company”), a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition,
stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities (a “Business
Combination”), intends to register its securities under the Securities Act of 1933, as amended (“Securities Act”), in
connection with its initial public offering (“IPO”), pursuant to a registration statement on Form S-1 (“Registration
Statement”).

 

The undersigned hereby commits
that it will purchase an aggregate of [●] warrants of the Company (“Private Warrants”), at a price of $1.00 per warrant
for an aggregate purchase price of $[●] (the “Private Warrant Purchase Price”).

 

At least twenty-four (24)
hours prior to the effective date of the Registration Statement, the undersigned will cause the Private Warrant Purchase Price to be delivered
to Greenberg Traurig, LLP, as escrow agent, by wire transfer as set forth in the instructions attached as Exhibit A to hold in a non-interest
bearing account until the Company consummates the IPO.

 

The consummation of the purchase
and issuance of the Private Warrants shall occur simultaneously with the consummation of the IPO. Simultaneously with the consummation
of the IPO, Continental Stock Transfer & Trust Company (“Continental”) shall deposit $[●] of the Private Warrant
Purchase Price, without interest or deduction, into the trust account (“Trust Account”) established by the Company for the
benefit of the Company’s public stockholders and the remaining $[●] shall be used by the Company for working capital, each
as described in the Registration Statement.

 

Each of the Company and the
undersigned acknowledges and agrees that Greenberg Traurig, LLP is serving hereunder solely as a convenience to the parties to facilitate
the purchase of the Private Warrants.

 

Additionally, the undersigned
agrees:

 

		·	not to propose, or vote in favor of, prior to or unrelated to an initial Business Combination, an amendment to the Company’s
Amended and Restated Certificate of Incorporation that would affect the substance or timing of the Company’s obligation to redeem
100% of the Company’s shares of common stock sold in the IPO if the Company does not complete an initial Business Combination within
12 months (or up to 21 months, if the time to complete a Business
Combination is extended as described in the prospectus relating to the IPO) from the closing of the IPO, unless the Company provides the holders of shares of common stock sold in the IPO with the opportunity
to redeem their shares of common stock upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate
amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released
to the Company to pay the Company’s franchise and income taxes, divided by the number of then outstanding shares of common stock
sold in the IPO;

 

		·	the undersigned will not participate in any liquidation distribution with respect to the Private Warrants (but will participate in
liquidation distributions with respect to any units or common stock purchased by the undersigned in the IPO or in the open market) if
the Company fails to consummate a Business Combination;

 

		·	that the Private Warrants and underlying securities will not be transferable until 30 days after the consummation of a Business Combination
except (i) to the Company’s officers or directors, any affiliates or family members of any of the Company’s officers
or directors and any members or affiliates of the Company’s co-sponsors, (ii) by gift to a member of an individual’s immediate
family or to a trust, the beneficiary of which is a member of the individual’s immediate family, an affiliate of such person or
to a charitable organization, (iii) by virtue of the laws of descent and distribution upon death, (iv) pursuant to a qualified domestic
relations order, (v) by private sales or transfers made in connection with the consummation of an initial Business Combination at prices
no greater than the price at which the Private Warrants were originally purchased, (vi) in the event of the Company’s liquidation
prior to the completion of its initial Business Combination, (vii) by virtue of the laws of Delaware or [●]’s liability company
agreement upon dissolution of [●], or (viii) to the Company for cancellation in connection with the consummation of a Business Combination,
in each case (except for clauses (vi) and (viii)) where the transferee agrees to the terms of the transfer restrictions; and

 

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		·	the Private Warrants will include any additional terms or restrictions as is customary in other similarly structured blank check company
offerings or as may be reasonably required by the underwriters in the IPO in order to consummate the IPO, each of which will be set forth
in the Registration Statement.

 

The undersigned acknowledges
and agrees that the purchaser of the Private Warrants will execute agreements in form and substance typical for transactions of this nature
necessary to effectuate the foregoing agreements and obligations prior to the consummation of the IPO as are reasonably acceptable to
the undersigned, including but not limited to an insider letter.

 

The undersigned also acknowledges
to be bound by the terms of the private warrants described in the warrant agreement between the Company and Continental that will be executed
in connection with the Company’s IPO.

 

The undersigned hereby represents
and warrants that:

 

(a) it has been advised
that the Private Warrants have not been registered under the Securities Act;

 

(b) it will be acquiring
the Private Warrants for its account for investment purposes only;

 

(c) it has no present
intention of selling or otherwise disposing of the Private Warrants in violation of the securities laws of the United States;

 

(d) it is an “accredited
investor” as defined by Rule 501 of Regulation D promulgated under the Securities Act;

 

(e) it has had both the
opportunity to ask questions and receive answers from the officers and directors of the Company and all persons acting on its behalf concerning
the terms and conditions of the offer made hereunder;

 

(f) it is familiar with
the proposed business, management, financial condition and affairs of the Company;

 

(g) it has full power,
authority and legal capacity to execute and deliver this letter and any documents contemplated herein or needed to consummate the transactions
contemplated in this letter; and

 

(h) this letter constitutes
its legal, valid and binding obligation, and is enforceable against it.

 

This letter agreement constitutes
the entire agreement between the undersigned and the Company with respect to the purchase of the Private Warrants, and supersedes all
prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to the same.

 

[SIGNATURE PAGE FOLLOWS]

 

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	 	Sincerely,
	 	 
	 	Very truly yours,
	 	 
	 	[_____]
	 	 
	 	By:	 
	 	 	Name:  	 
	 	 	Title:	 

  

	Accepted and Agreed:	 
	 	 
	MONTEREY BIO ACQUISITION CORPORATION	 
	 	 
	By:	 	 
	 	Name:  	Sanjeev Satyal	 
	 	Title:  	Chief Executive Officer	 

 

     

     

    

 

 Exhibit A

 

Wire Instructions

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