Exhibit 10.2
Certain information marked as [***] has been excluded from this exhibit because
it is both (i) not material and (ii) would be competitively harmful if publicly
disclosed.

July 8, 2020

Evelo Biosciences, Inc.
620 Memorial Drive, Suite 500 West
Cambridge, MA 02139
Attention: Daniel Char and Jonathan Poole

Re:  Third Amendment to Loan and Security Agreement

Ladies and Gentlemen:

Reference is made to that certain Loan and Security Agreement, dated as of July
19, 2019 (as amended, restated, supplemented or otherwise modified, from time to
time, the “Agreement”), among EVELO BIOSCIENCES, INC., a Delaware corporation
(“Borrower Representative”), and each other Person party thereto as a borrower
from time to time (collectively, “Borrowers”, and each, a “Borrower”), K2
HEALTHVENTURES LLC and any other lender from time to time party thereto
(collectively, “Lenders”, and each, a “Lender”), K2 HEALTHVENTURES LLC, as
administrative agent for Lenders (in such capacity, and together with its
successors, “Administrative Agent”), and ANKURA TRUST COMPANY, LLC, as
collateral agent for Lenders. Capitalized terms not defined herein have meanings
as defined in the Agreement. The parties desire to amend the Agreement in
accordance with the terms of this letter agreement (the “Amendment”), effective
as of the date hereof.
NOW, THEREFORE, the parties agree as follows:
1)Notwithstanding Section 6.6 of the Agreement, Borrower Representative shall be
permitted to maintain a Deposit Account domiciled in London, England with J.P.
Morgan identified to Administrative Agent as of the date hereof ending in [***]
(the “JPM UK Account”) without an Account Control Agreement in favor of
Collateral Trustee, provided that Borrowers shall not permit the balance in such
Deposit Account to exceed (i) from the date hereof until March 31, 2021,
£2,600,000, and (ii) on March 31, 2021 and at all times thereafter, $500,000 (on
a U.S. Dollar equivalent basis).
2)In connection with the foregoing, the form of Compliance Certificate is hereby
amended and restated as set forth in the attached as Exhibit D hereto.
3)Except as expressly modified by this Amendment, the Agreement shall remain
unchanged and in full force and effect in accordance with its terms. This
Amendment may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one instrument.
This Amendment shall be governed by, and construed in accordance with, the laws
of the State of New York without regard to principles of conflicts of law that
would result in the application of any laws other than those of the State of New
York.

228071779 v1

--------------------------------------------------------------------------------

Certain information marked as [***] has been excluded from this exhibit because
it is both (i) not material and (ii) would be competitively harmful if publicly
disclosed.

If the foregoing accurately sets forth our agreement, please countersign this
letter in the space provided below.

Sincerely,

LENDER:
K2 HEALTHVENTURES LLC

            
By:  /s/ Parag Shah   
Name: Parag Shah
Title: CEO

        
ADMINISTRATIVE AGENT:
K2 HEALTHVENTURES LLC

By:  /s/ Parag Shah   
Name: Parag Shah
Title: CEO

AGREED AND ACCEPTED:

BORROWER REPRESENTATIVE:
EVELO BIOSCIENCES, INC.

By:  /s/ Daniel S. Char   
Name: Daniel S. Char
Title: General Counsel & Secretary

228071779 v1

--------------------------------------------------------------------------------

Certain information marked as [***] has been excluded from this exhibit because
it is both (i) not material and (ii) would be competitively harmful if publicly
disclosed.
EXHIBIT D
COMPLIANCE CERTIFICATE
TO: K2 HEALTHVENTURES LLC, as Administrative Agent  

Date:
FROM:  EVELO BIOSCIENCES, INC.

Reference is made to that certain Loan and Security Agreement, dated July 19,
2019 (as amended, restated, supplemented or otherwise modified, from time to
time, the “Agreement”), among EVELO BIOSCIENCES, INC., a Delaware corporation
(“Borrower Representative”), and each other Person party thereto as a borrower
from time to time (collectively, “Borrowers”, and each, a “Borrower”), K2
HEALTHVENTURES LLC and any other lender from time to time party thereto
(collectively, “Lenders”, and each, a “Lender”), K2 HEALTHVENTURES LLC, as
administrative agent for Lenders (in such capacity, and together with its
successors, “Administrative Agent”), and ANKURA TRUST COMPANY, LLC, as
collateral agent for Lenders (in such capacity, together with its successors,
“Collateral Trustee”). Capitalized terms have meanings as defined in the
Agreement.
The undersigned authorized officer of Borrower Representative, solely in his or
her capacity as an officer of Borrower Representative and not in his or her
individual capacity, hereby certifies in accordance with the terms of the
Agreement as follows:
(1) Each Borrower is in compliance for the period ending     with all covenants
set forth in the Agreement; (2) no Event of Default has occurred and is
continuing; and (3) the representations and warranties in the Agreement are true
and correct in all material respects on this date; provided, however, that such
materiality qualifier shall not be applicable to any representations and
warranties that already are qualified or modified by materiality in the text
thereof; and provided, further that those representations and warranties
expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date.
The undersigned certifies that all financial statements delivered herewith are
prepared in accordance with GAAP (other than, with respect to unaudited
financials for the absence of footnotes and being subject to normal year-end
adjustments), consistently applied from one period to the next. Capitalized
terms used but not otherwise defined herein shall have the meanings given them
in the Agreement.
228071779 v1

--------------------------------------------------------------------------------

Certain information marked as [***] has been excluded from this exhibit because
it is both (i) not material and (ii) would be competitively harmful if publicly
disclosed.

Please indicate compliance status by circling Yes/No under “Complies”
column.Reporting CovenantsRequiredCompliesMonthly financial statements and
Compliance CertificateMonthly, within 30 daysYes NoA/R and A/P Aging
ReportsTogether with monthly financial statements (upon request)Yes NoQuarterly
financial statementsQuarterly, within 45 days (deemed delivered by
posting/linking related SEC filing to/on Borrower Representative’s website)Yes
NoAnnual ProjectionsAnnually, within 30 days of fiscal year end or within 5
Business Days of any Board approval of a material update theretoYes NoAnnual
audited financial statements and any management lettersAnnually, within 90 days
of fiscal year end (deemed delivered by posting/linking related SEC filing to/on
Borrower Representative’s website)Yes NoStatements, reports and notices to
Subordinated Debt holdersWithin 5 Business Days of deliveryYes NoSEC
filingsWithin 5 Business Days after filing with SEC (deemed delivered by posting
to/linking on Borrower Representative’s website)Yes NoLegal action notices and
updates (claims over $500,000)PromptlyYes NoIP reportAt the end of each calendar
quarterYes NoBank account statements (with transaction detail)Together with
monthly financial statements (upon request) or when receivedYes NoProduct
related material correspondence, reports, documents and other filingsWithin 5
Business Days after receiptYes No

Other CovenantsRequiredActualCompliesEquipment financing Indebtedness (not
existing on such Equipment when acquired or Equipment considered Excluded
Inventory and Equipment)Not to exceed $500,000 outstanding$Yes No
Cash repurchases of stock from former employees, officers and directors (not
including cancellation of Indebtedness)

Not to exceed $500,000 per fiscal year in cash$Yes NoDeposits or pledges for
bids, tenders, contracts, leases, surety or appeal bondsNot to exceed $250,000
at any time$Yes NoLetter of credit reimbursement obligations and associated cash
collateralNot to exceed $2,500,000 at any time$Yes NoJPM UK AccountNot to exceed
£2,600,000 before 03/31/21; not to exceed $500,000 on 03/31/21 and at all times
thereafter$Yes No

Investments (i) among Loan Parties, (ii) by Subsidiaries which are not

228071779 v1

--------------------------------------------------------------------------------

Certain information marked as [***] has been excluded from this exhibit because
it is both (i) not material and (ii) would be competitively harmful if publicly
disclosed.
Other Matters
Please list any SEC filings made since the most recently delivered Compliance
Certificate: [ ] None

______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
Has any Borrower changed its legal name, jurisdiction of organization or chief
executive office? If yes, please complete details below:

______________________________________________________________

YesNo
Have any new Subsidiaries been formed? If yes, please provide complete schedule
below.

YesNo

Legal Name of Subsidiary
Jurisdiction of Organization
Holder of Subsidiary Equity Interests
Equity Interests Certificated? (Y/N)
Jurisdiction

Do Subsidiaries which are not Loan Parties maintain (i) cash and other assets
with an aggregate value for all such Subsidiaries in excess of 10% of
consolidated assets, (ii) revenue in excess of 10% of consolidated revenues for
any twelve month period then ended, (iii) any Intellectual Property which is
material to the business of Borrowers as a whole, or (iv) any contracts which
are material to the business of Borrowers as a whole? If yes, please attach
relevant details.
YesNo

Please list any new Collateral Accounts opened since date of last Compliance
Certificate or any Collateral Accounts not subject to an Account Control
Agreement below:

Accountholder
Deposit Account / Intermediary
Address
Account Number
New Collateral Account? (Y/N)
Account Control Agreement in place? (Y/N)
If no Account Control Agreement, indicate basis for exclusion / ending balance

228071779 v1

--------------------------------------------------------------------------------

Certain information marked as [***] has been excluded from this exhibit because
it is both (i) not material and (ii) would be competitively harmful if publicly
disclosed.

Is there any new Product material to the Loan Parties’ business not previously
disclosed on the Perfection Certificate or any prior Compliance Certificate? If
yes, please complete details below:

YesNo

Has any Loan Party entered into a Restricted License? If yes, please describe
below:

YesNo

The following are the exceptions with respect to the certification above: (If no
exceptions exist, state “No exceptions to note.”)

-----------------------------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------

BORROWER REPRESENTATIVE:

EVELO BIOSCIENCES, INC.
By:

Name:

Title:

228071779 v1