Environmental Indemnity Agreement Date 09/27/96

ENVIRONMENTAL INDEMNITY AGREEMENT
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THIS ENVIRONMENTAL INDEMNITY AGREEMENT (this "AGREEMENT") is made as of September 27, 1996 by Alkermes, Inc. ("ALKERMES") and Alkermes Controlled Therapeutics Inc. II ("MORTGAGOR") (Alkermes and Mortgagor being hereinafter referred to collectively as "INDEMNITORS" and individually as an "INDEMNITOR") for the benefit of FLEET NATIONAL BANK ("BANK").


W I T N E S S E T H:
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WHEREAS, Mortgagor is the owner of certain real property located in Clinton County, Ohio, more particularly described in EXHIBIT A attached hereto and incorporated herein by this reference (the "LAND") (the Land, together with all improvements now or hereafter located in, on or under the Land, collectively, the "PROPERTY");


WHEREAS, Bank has agreed to make a $5,000,000 term loan (the "Ohio Term Loan") to Indemnitors pursuant to a letter agreement of even date (as amended from time to time, the "LOAN AG ...