Exhibit 10.21


                      CHANGE IN CONTROL SEVERANCE AGREEMENT


                  AGREEMENT made as of April 25, 1997 between Polaroid
Corporation ("Polaroid" or "Company") and Joseph G. Parham, Jr. (the
"Executive").

                  Executive is a skilled and dedicated employee who has
important management responsibilities and talents which benefit Polaroid.
Polaroid believes that its best interests will be served if Executive is
encouraged to remain with Polaroid. Polaroid has determined that Executive's
ability to perform Executive's responsibilities and utilize Executive's talents
for the benefit of Polaroid, and Polaroid's ability to retain Executive as an
employee, will be significantly enhanced if Executive is provided with fair and
reasonable protection from the risks of a change in ownership or control of
Polaroid. Accordingly, Polaroid and Executive agree as follows:

1.       Defined Terms.

(a)      "Annual Bonus" shall mean the Executive's annual bonus paid pursuant
         to the Company's annual bonus plan in effect at the time (currently the
         Polaroid Incentive Plan for Executives). Unless otherwise specifically
         provided, the Annual Bonus shall be calculated assuming the Corporate
         target is reached and no additional factors are considered to decrease
         the Executive's award under the Plan.

(b)      "Acquiring Person" shall mean any Person who or which, together with
         all Affiliates and Associates of such Person, is the Beneficial Owner
         of 20% or more of the Stock then outstanding, but does not include any
         Subsidiary of the Company, any employee benefit plan of the Company or
         of any of its Subsidiaries or any Person holding Stock for or pursuant
         to the terms of any such employee benefit plan.

(c)      "Affiliate" and "Associate" when used with reference to any Person,
         shall have the meaning given to such terms in Rule 12b-2 of the General
         Rules and Regulations under the Exchange Act.

(d)      "Base Salary" shall mean the annual rate of base salary (disregarding
         any reduction in such rate that constitutes Constructive Termination)
         as increased by the Board from time to time.

(e)      "Beneficial Owner" shall be a Person deemed to "beneficially own," any
         securities:


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         (i)  which such Person or any of such Person's Affiliates or Associates
              beneficially owns, directly or indirectly; or

         (ii) which such Person or any of such Person's Affiliates or Associates
              has:

              (A) the right to acquire  (whether such right is  exercisable
                  immediately or only after the passage of time) pursuant to any
                  agreement, arrangement or understanding (written or oral), or
                  upon the exercise of conversion rights, exchange rights,
                  warrants or options, or otherwise; provided, however, that a
                  Person shall not be deemed the Beneficial Owner of, or to
                  beneficially own, securities tendered pursuant to a tender or
                  exchange offer made by or on behalf of such Person or any of
                  such Person's Affiliates or Associates until such tendered
                  securities are accepted for purchase or exchange thereunder;
                  or

              (B) the right to vote pursuant to any agreement, arrangement or
                  understanding (written or oral); provided however, that a
                  Person shall not be deemed the Beneficial Owner of, or to
                  beneficially own, any security if the agreement, arrangement
                  or understanding (written or oral) to vote such security (1)
                  arises solely from a revocable proxy given to such Person in
                  response to a public proxy or consent solicitation made
                  pursuant to, and in accordance with, the applicable rules and
                  regulations under the Exchange Act, and (2) is not also then
                  reportable on Schedule 13D (or any comparable or successor
                  report) under the Exchange Act; or,

              (C) which are beneficially owned, directly or indirectly, by any
                  Person with which such Person or any of such Person's
                  Affiliates or Associates has any agreement, arrangement or
                  understanding (written or oral), for the purpose of acquiring,
                  holding, voting (except pursuant to a revocable proxy as
                  described above) or disposing of any securities of the
                  Company.


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(f)      "Board" shall mean the Board of Directors of the Company.

(g)      "Bonus" means the amount payable to the Executive under any plan, or
         agreement offered by Polaroid.

(h)      "Cause" means either of the following:

         (i)  Executive's willful malfeasance having a material adverse effect
              on Polaroid; or

         (ii) Executive's conviction of a felony;

         provided, that any action or refusal by Executive shall not constitute
         Cause if, in good faith, Executive believed such action or refusal to
         be in, or not opposed to, the best interests of Polaroid, or if
         Executive shall be entitled, under applicable law or under an
         applicable Polaroid Certificate of Incorporation or the Polaroid
         By-Laws, as they may be amended or restated from time to time, to be
         indemnified with respect to such action or refusal.

(i)      "Change in Control" shall mean:

         (i)   the date on which a change in control of the Company occurs of a
               nature that would be required to be reported (assuming that the
               Company's Stock was registered under the Exchange Act) in
               response to an item (currently item 6(e)) of Schedule 14A of
               Regulation 14A promulgated under the Exchange Act or an item
               (currently Item l(a)) of Form 8-K under the Exchange Act;

         (ii)  the date on which there is an Acquiring Person and a change in
               the composition of the Board of the Company within two years
               after the Share Acquisition Date such that the individuals who
               constitute the Board prior to the Share Acquisition Date shall
               cease for any reason to constitute at least a majority of the
               Board;

         (iii) any day on or after the Share Acquisition Date when directly or
               indirectly, any of the transactions specified in the following
               clauses occurs:

               (A) the Company shall consolidate with, or merge with and into,
                   any other Person;

               (B) any Person shall merge with and into the Company; or


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               (C) the Company shall sell, lease, exchange or otherwise transfer
                   or dispose of (or one or more of its Subsidiaries shall sell,
                   lease, exchange or otherwise transfer or dispose of), in one
                   or more transactions, the major part of the assets of the
                   Company and its Subsidiaries (taken as a whole) to any other
                   Person or Persons;

         (iv)  the date when a Person (other than the Company, any Subsidiary of
               the Company, any employee benefit plan of the Company or any of
               its Subsidiaries or any Person holding Stock for or pursuant to
               the terms of any such employee benefit plan) alone or together
               with all Affiliates and Associates of such Person, becomes the
               Beneficial Owner of 30% or more of the Stock then outstanding;

         (v)   the date on which the stockholders of the Company approve a
               merger or consolidation of the Company with any other corporation
               other than:

               (A) a merger or consolidation which would result in voting
                   securities of the Company outstanding immediately prior
                   thereto continuing to represent (either by remaining
                   outstanding or by being converted into voting securities of
                   the surviving or parent entity) 50% or more of the combined
                   voting power of the voting securities of the Company or such
                   surviving or parent entity outstanding immediately after such
                   merger or consolidation, or

               (B) a merger or consolidation effected to implement a
                   recapitalization of the Company (or similar transaction) in
                   which no Person acquires 50% or more of the combined voting
                   power of the Company's then outstanding securities; or

         (vi)  the date stockholders of the Company approve a plan of complete
               liquidation of the Company or an agreement for the sale or
               disposition by the Company of all or substantially all of the
               Company's assets (or any transaction having a similar effect).

(j)      "Code" means the Internal Revenue Code of 1986, as amended.


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(k)      "Confidential Information" means non-public information relating to the
         business plans, marketing plans, customers or employees of Polaroid
         other than information the disclosure of which cannot reasonably be
         expected to adversely affect the business of Polaroid.

(l)      "Constructive Termination" shall occur when the Executive voluntarily
         terminates his employment with the Company or retires after the
         occurrence of one or more of the following events on or after the
         Change in Control:

         (i)   a reduction in Base Salary from the amount of Base Salary on the
               day immediately preceding the Change in Control;

         (ii)  the elimination of or reduction of any benefit under any bonus,
               incentive or other employee benefit plan in effect on the day
               immediately preceding the Change in Control, without an
               economically equivalent replacement, if Executive was a
               participant or member of such plan on the day immediately
               preceding the Change in Control;

         (iii) the discontinuation of or any reduction in Executive's
               participation or membership in any bonus, incentive or other
               benefit plan in which Executive was a participant or member on
               the day immediately preceding the Change in Control, without an
               economically equivalent replacement;

         (iv)  the reassignment of Executive without Executive's consent from
               Executive's regular shift or regular duties as they existed on
               the day immediately preceding the Change in Control;

         (v)   the reassignment of Executive without Executive's consent to a
               location more than thirty (30) miles from Executive's regular
               workplace on the day immediately preceding the Change in Control;

         (vi)  the reduction in Executive's job title or level in effect on the
               day immediately preceding the Change in Control;

         (vii) the provision of significantly less favorable working conditions
               than those provided on the day immediately preceding the Change
               in Control; or


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         (viii) a significant diminution in duties or responsibilities or the
                reassignment of Executive to duties which represent a position
                of lesser responsibility than Executive's duties as they existed
                on the day immediately preceding the Change in Control.

(m)      "Disability" shall mean the Executive's disability within the meaning
         of the Polaroid Long Term Disability Plan.

(n)      "Exchange Act" shall mean the Securities Exchange Act of 1934, as in
         effect on the date in question.

(o)      "Person" shall mean an individual, corporation, partnership, joint
         venture, association, trust, unincorporated organization or other
         entity.

(p)      "Share Acquisition Date" shall mean the first date any Person shall
         become an Acquiring Person.

(q)      "Stock" shall mean the outstanding shares of Common Stock of the
         Company and, for purposes of the Change in Control provision, any other
         shares of capital stock of the Company into which the Common Stock
         shall be reclassified or changed.

(r)      "Subsidiary" of the Company shall mean any corporation of which the
         Company owns, directly or indirectly, more than 50% of the Voting
         Stock.

(s)      "Terminated" shall mean:

         (i)   termination by Polaroid without Cause at any time within the two
               (2) years following a Change in Control;

         (ii)  Executive's termination due to a Constructive Termination at any
               time within the two (2) years following a Change in Control; or

         (iii) termination within three (3) months prior to a Change of Control
               at the request of any individual or entity acquiring ownership
               and control of Polaroid. If Executive's employment with Polaroid
               is terminated prior to a Change in Control at the request of
               Acquiring Person, this Agreement shall become effective upon the
               subsequent occurrence of a Change in Control involving such
               Acquiring Person. In such situation the Executive's Termination
               Date shall be deemed to have occurred immediately following the
               Change in Control, and therefore


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               Executive shall be entitled to the benefits provided in this
               Agreement.

(t)      "Termination Date" shall mean the date on which Executive is
         terminated.

(u)      "Voting Stock" shall mean capital stock of any class or classes having
         general voting power under ordinary circumstances, in the absence of
         contingencies, to elect the directors of a corporation.

2.       Effective Date; Term. This Agreement shall be effective immediately
         prior to a Change in Control (the "Effective Date") and shall remain in
         effect for two (2) years following such Change in Control, and such
         additional time as may be necessary to give effect to the terms of the
         Agreement.

3.       Change in Control Benefits. If Executive's employment with Polaroid is
         Terminated, Executive shall be entitled to the following benefits:

(a)      Severance Benefits. Within ten (10) business days after the
         Termination Date, Polaroid shall pay Executive a lump sum amount, in
         cash, equal to the greater of the severance benefit Executive would
         otherwise be entitled to receive under the Extended Severance Plan or:

         (i)   two (2) times the sum of:

               (A) Executive's Base Salary; and

               (B) Executive's Annual Bonus; and

         (ii)  Executive's Annual Bonus multiplied by a fraction, the numerator
               of which shall equal the number of days Executive was employed by
               Polaroid in the calendar year in which the Termination Date
               occurs and the denominator of which shall equal 365.

(b)      Continued Welfare Benefits. Until the second anniversary of the
         Termination Date, Executive shall be entitled to participate in the
         Company's medical, dental, and life insurance plans, at the highest
         level provided to Executive during the period beginning immediately
         prior to the Change in Control and ending on the Termination Date and
         at no greater cost than the cost Executive was paying immediately prior
         to Change in Control; provided, however, that if Executive becomes
         employed by a new employer, Executive's coverage under the applicable
         Polaroid plans shall continue, but Executive's coverage thereunder
         shall be


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         secondary to (i.e., reduced by) any benefits provided under like plans
         of such new employer.

(c)      Payment of Accrued But Unpaid Amounts. Within ten (10) business days
         after the Termination Date, Polaroid shall pay Executive:

         (i)   earned but unpaid compensation, including, without limitation,
               any unpaid portion of Executive's Bonus accrued with respect to
               the full calendar year ended prior to the Termination Date; and

         (ii)  all compensation previously deferred by Executive on a
               non-qualified basis but not yet paid.

(d)      Retiree-Medical Benefits. If Executive is or would become fifty-five
         (55) or older and Executive's age and service equal sixty-five (65) and
         Executive has at least five (5) years of service with the Company
         within two (2) years of Change in Control, Executive is eligible for
         retiree medical benefits (as such are determined immediately prior to
         Change in Control). Executive is eligible to commence receiving such
         retiree medical benefits based on the terms and conditions of the
         applicable plans in effect immediately prior to the Change in Control.

(e)      Supplemental Retirement and Profit Sharing Benefits.

         (i)   On the Termination Date, Executive shall become vested in the
               benefits provided under Polaroid's non-qualified defined benefit
               pension plans or any successor plans (the "Supplemental Plans").

         (ii)  Within ten (10) business days after the Termination Date,
               Polaroid shall pay Executive a lump sum cash amount equal to the
               present value of Executive's accrued benefit under the
               Supplemental Plans. For purposes of computing the lump sum
               present value of Executive's accrued benefit under the
               Supplemental Plans,

               (A) Polaroid shall credit Executive with two (2) years of plan
                   participation and service and two (2) years of age for all
                   purposes (including additional accruals and eligibility for
                   early retirement) over Executive's actual years and
                   fractional years of plan participation and service and age
                   credited to Executive on the Termination Date; and

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               (B) Polaroid shall apply the present value (and any other
                   actuarial adjustments required by this Agreement) using the
                   applicable actuarial assumptions set forth in the Pension
                   Plan. In determining Executive's benefits under this
                   paragraph (e)(B), the terms of the Supplemental Plans as in
                   effect immediately prior to the Change in Control, except as
                   expressly modified in this paragraph (e), shall govern.

(f)      Effect on Existing Plans. All Change in Control provisions applicable
         to Executive and contained in any plan, program, agreement or
         arrangement maintained as of the date this Agreement is signed
         (including, but not limited to, any stock option, restricted stock or
         pension plan) shall remain in effect through the date of a Change in
         Control, and for such period thereafter as is necessary to carry out
         such provisions and provide the benefits payable thereunder, and may
         not be altered in a manner which adversely affects Executive without
         Executive's prior written approval. This means that all awards of
         options, performance shares or such other awards as may be granted
         shall upon Change in Control be fully vested consistent with the terms
         of these Agreements. Notwithstanding the foregoing, no benefits shall
         be paid to Executive, however, under the Polaroid Extended Severance
         Plan or any other severance plan maintained generally for the employees
         of Polaroid if Executive is eligible to receive severance benefits
         under this Agreement.

(g)      Outplacement Counseling. Outplacement services will be provided
         consistent with Polaroid's outplacement practices in effect prior to
         the Change in Control.

4.       Mitigation. Executive shall not be required to mitigate damages or the
         amount of any payment provided for under this Agreement by seeking
         other employment or otherwise, and compensation earned from such
         employment or otherwise shall not reduce the amounts otherwise payable
         under this Agreement. No amounts payable under this Agreement shall be
         subject to reduction or offset in respect of any claims which Polaroid
         (or any other person or entity) may have against Executive unless
         specifically referenced herein.

5.       Gross-up.

(a)      In the event it shall be determined that any payment, benefit or
         distribution (or combination thereof) by Polaroid, or one or more
         trusts established by Polaroid for the benefit of its employees, to or
         for the benefit of Executive (whether paid or payable or distributed or


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         distributable pursuant to the terms of this Agreement, or otherwise) (a
         "Payment") would be subject to the excise tax imposed by Section 4999
         of the Code or any interest or penalties are incurred by Executive with
         respect to such excise tax (such excise tax, together with any such
         interest and penalties, hereinafter collectively referred to as the
         "Excise Tax"), Executive shall be entitled to receive an additional
         payment (a "Gross-Up Payment") in an amount such that after payment by
         Executive of all taxes (including any interest or penalties imposed
         with respect to such taxes), including, without limitation, any income
         taxes (and any interest and penalties imposed with respect thereto) and
         the Excise Tax imposed upon the Gross-Up Payment, Executive retains an
         amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
         Payments.

(b)      Subject to the provisions of Section 5(c), all determinations required
         to be made under this Section 5, including whether and when a Gross-Up
         Payment is required and the amount of such Gross-Up Payment and the
         assumptions to be utilized in arriving at such determination, shall be
         made by a nationally recognized certified public accounting firm as may
         be designated by Executive (the "Accounting Firm") which shall provide
         detailed supporting calculations both to Polaroid and Executive within
         fifteen (15) business days of the receipt of notice from Executive that
         there has been a Payment, or such earlier time as is requested by
         Polaroid. In the event that the Accounting Firm is serving as
         accountant or auditor for an individual, entity or group effecting the
         change in ownership or effective control (within the meaning of Section
         280G of the Code), Executive shall appoint another nationally
         recognized accounting firm to make the determinations required
         hereunder (which accounting firm shall then be referred to as the
         Accounting Firm hereunder). All fees and expenses of the Accounting
         Firm shall be borne solely by Polaroid. Any Gross-Up Payment, as
         determined pursuant to this Section 5, shall be paid by Polaroid to
         Executive within five (5) business days after the receipt of the
         Accounting Firm's determination. If the Accounting Firm determines that
         no Excise Tax is payable by Executive, it shall so indicate to
         Executive in writing. Any determination by the Accounting Firm shall be
         binding upon Polaroid and Executive. As a result of the uncertainty in
         the application of Section 4999 of the Code at the time of the initial
         determination by the Accounting Firm hereunder, it is possible that
         Gross-Up Payments which will not have been made by Polaroid should have
         been made ("Underpayment"), consistent with the calculations required
         to be made hereunder. In the


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         event that Polaroid exhausts its remedies pursuant to Section 5(c) and
         Executive thereafter is required to make a payment of any Excise Tax,
         the Accounting Firm shall determine the amount of the Underpayment that
         has occurred and any such Underpayment shall be promptly paid by
         Polaroid to or for the benefit of Executive.

(c)      The Executive shall notify the Company in writing of any written claim
         by the Internal Revenue Service that, if successful, would require the
         payment by the Company of the Gross-Up Payment. Such notification shall
         be given as soon as practicable but no later than ten (10) business
         days after the Executive is informed in writing of such claim and shall
         apprise the Company of the nature of such claim and the date on which
         such claim is requested to be paid (but the Executive's failure to
         comply with this notice obligation shall not eliminate his rights under
         this Section except to the extent Polaroid's defense against the
         imposition of the Excise Tax is actually prejudiced by any such
         failure). The Executive shall not pay such claim prior to the
         expiration of the thirty (30) day period following the date on which he
         gives such notice to the Company (or such shorter period ending on the
         date that any payment of taxes with respect to such claim is due). If
         the Company notifies the Executive in writing prior to the expiration
         of such period that it desires to contest such claim, the Executive
         shall:

         (i)   give Polaroid any information reasonably requested by Polaroid
               relating to such claim;

         (ii)  take such action in connection with contesting such claim as
               Polaroid shall reasonably request in writing from time to time,
               including, without limitation, accepting legal representation
               with respect to such claim by an attorney reasonably selected by
               Polaroid;

         (iii) cooperate with Polaroid in good faith in order to effectively
               contest such claim; and

         (iv)  permit Polaroid to participate in any proceedings relating to
               such claim;

         provided, however, that Polaroid shall bear and pay directly all costs
         and expenses (including additional interest and penalties) incurred in
         connection with such contest and shall indemnify and hold Executive
         harmless, on an after-tax basis, for any Excise Tax or income tax
         (including interest and penalties with respect thereto) imposed as a
         result of such representation and payment of costs and expenses.
         Without limitation on the foregoing provisions of this

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         Section 5(c), Polaroid shall control all proceedings taken in
         connection with such contest and, at its sole option, may pursue or
         forego any and all administrative appeals, proceedings, hearings and
         conferences with the taxing authority in respect of such claim and may,
         at its sole option, either direct Executive to pay the tax claimed and
         sue for a refund or contest the claim in any permissible manner, and
         Executive agrees to prosecute such contest to a determination before
         any administrative tribunal, in a court of initial jurisdiction and in
         one or more appellate courts, as Polaroid shall determine; provided,
         however, that if Polaroid directs Executive to pay such claim and sue
         for a refund, Polaroid shall advance the amount of such payment to
         Executive, on an interest-free basis, and shall indemnify and hold
         Executive harmless, on an after-tax basis, from any Excise Tax or
         income tax (including interest or penalties with respect thereto)
         imposed with respect to such advance or with respect to any imputed
         income with respect to such advance; and provided, further, that if
         Executive is required to extend the statute of limitations to enable
         Polaroid to contest such claim, Executive may limit this extension
         solely to such contested amount. Polaroid's control of the contest
         shall be limited to issues with respect to which a Gross-Up Payment
         would be payable hereunder and Executive shall be entitled to settle or
         contest, as the case may be, any other issue raised by the Internal
         Revenue Service or any other taxing authority.

(d)      If, after the receipt by Executive of an amount advanced by Polaroid
         pursuant to Section 5(c), Executive receives any refund with respect to
         such claim, Executive shall (subject to Polaroid's complying with the
         requirements of Section 5(c)) promptly pay to Polaroid the amount of
         such refund (together with any interest paid or credited thereon after
         taxes applicable thereto). If, after the receipt by Executive of an
         amount advanced by Polaroid pursuant to Section 5(c), a determination
         is made that Executive shall not be entitled to any refund with respect
         to such claim and Polaroid does not notify Executive in writing of its
         intent to contest such denial of refund prior to the expiration of
         thirty (30) days after such determination, then such advance shall be
         forgiven and shall not be required to be repaid and the amount of such
         advance shall offset, to the extent thereof, the amount of Gross-Up
         Payment required to be paid.

6.       Termination for Cause. Nothing in this Agreement shall be construed to
         prevent Polaroid from terminating Executive's employment for Cause. If
         Executive is terminated for Cause, Polaroid shall have no obligation to
         make any payments under this Agreement, except for payments that may
         otherwise be

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         payable under then existing employee benefit plans, programs and
         arrangements of Polaroid.

7.       Indemnification; Director's and Officer's Liability Insurance.
         Executive shall, after the Termination Date, retain all rights to
         indemnification under applicable law or under Polaroid Certificate of
         Incorporation or the Polaroid By-Laws, as they may be amended or
         restated from time to time. In addition, Polaroid shall maintain
         Director's and Officer's liability insurance on behalf of Executive at
         the better of the level in effect immediately prior to the Change in
         Control or the Executive's Termination Date, for the two (2) year
         period following the Termination Date, and throughout the period of any
         applicable statute of limitations.

8.       Confidentiality. Without the prior written consent of the Company,
         except to the extent required by an order of a court having competent
         jurisdiction or under subpoena from an appropriate government agency,
         the Executive shall comply with the Confidentiality Agreement he
         executed when hired, and shall not disclose any trade secrets, customer
         lists, drawings, designs, information regarding product development,
         marketing plans, sales plans, manufacturing plans, management
         organization information (including data and other information relating
         to members of the Board and management), operating policies or manuals,
         business plans, financial records or other financial, commercial,
         business or technical information relating to the Company or any of its
         subsidiaries or information designated as confidential or proprietary
         that the Company or any of its Subsidiaries may receive belonging to
         suppliers, customers or others who do business with the Company or any
         of its subsidiaries (collectively, "Confidential Information") to any
         third person unless such Confidential Information has been previously
         disclosed to the public by the Company or is in the public domain
         (other than by reason of Executive's breach of this Section 8).

9.       Disputes. Any dispute or controversy arising under or in connection
         with this Agreement shall be settled exclusively by arbitration in
         Boston, Massachusetts or, at the option of Executive, in the county
         where Executive then resides, in accordance with the Rules of the
         American Arbitration Association then in effect. Judgment may be
         entered on an arbitrator's award relating to this Agreement in any
         court having jurisdiction.

10.      Costs of Proceedings. Polaroid shall pay all costs and expenses,
         including attorneys' fees and disbursements, at least monthly, of
         Executive in connection with any legal proceeding (including
         arbitration), whether or not instituted by Polaroid or Executive,
         relating to the interpretation or enforcement of any provision of this


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         Agreement, except that if Executive instituted the proceeding and the
         judge, arbitrator or other individual presiding over the proceeding
         affirmatively finds that Executive instituted the proceeding in bad
         faith, Executive shall pay all costs and expenses, including attorneys'
         fees and disbursements, of Executive. Polaroid shall pay pre-judgment
         interest on any money judgment obtained by Executive as a result of
         such a proceeding, calculated at the prime rate of The Chase Manhattan
         Bank (or its successors), as in effect from time to time, from the date
         that payment should have been made to Executive under this Agreement.

11.      Assignment. Except as otherwise provided herein, this Agreement shall
         be binding upon, inure to the benefit of and be enforceable by Polaroid
         and Executive and their respective heirs, legal representatives,
         successors and assigns. If Polaroid shall be merged into or
         consolidated with another entity, the provisions of this Agreement
         shall be binding upon and inure to the benefit of the entity surviving
         such merger or resulting from such consolidation. Polaroid will require
         any successor (whether direct or indirect, by purchase, merger,
         consolidation or otherwise) to all or substantially all of the business
         or assets of Polaroid, by agreement in form and substance satisfactory
         to Executive, to expressly assume and agree to perform this Agreement
         in the same manner and to the same extent that Polaroid would be
         required to perform it if no such succession had taken place. The
         provisions of this Section 11 shall continue to apply to each
         subsequent employer of Executive hereunder in the event of any
         subsequent merger, consolidation or transfer of assets of such
         subsequent employer.

12.      Payments in Event of Death. Should the Executive become eligible to
         receive payments and benefits under this Agreement and die prior to
         receipt of all such payments and benefits, the residual payments shall
         be made to the beneficiaries identified on the Executive's beneficiary
         form for the Executive Deferral Compensation Plan. Any residual family
         medical and dental benefits which the Executive was receiving on the
         Executive's date of death shall continue to the family members the
         Executive had covered in such medical and dental plans on such date.

13.      Withholding. Polaroid may, to the extent required by law, withhold
         applicable federal, state and local income and other taxes from any
         payments due to Executive hereunder.

14.      Applicable Law. This Agreement shall be governed by and construed in
         accordance with the laws of the Commonwealth of

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         Massachusetts applicable to contracts made and to be performed therein.

15.      Entire Agreement. This Agreement constitutes the entire agreement
         between the parties and, except as expressly provided herein,
         supersedes all other prior agreements concerning the effect of a Change
         in Control on the relationship between Polaroid and Executive. This
         Agreement may be changed only by a written agreement executed by
         Polaroid and Executive.

                  IN WITNESS WHEREOF, the parties have executed this Agreement
on the 25th day of April, 1997.



                                          POLAROID CORPORATION


                                          By /s/ Gary T. DiCamillo
                                             ------------------------
                                             Gary T. DiCamillo




/s/ Joseph G. Parham, Jr.
-------------------------
Joseph G. Parham, Jr.
Executive

                                      -15-