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                                                                   EXHIBIT 10.27

                                 EXHIBIT 10.27
                                 -------------

                              SEPARATION AGREEMENT
                              --------------------


          This Separation Agreement is made between Exide Corporation, a
Delaware Corporation ("Exide"), and Douglas N. Pearson.

          Whereas, Mr. Pearson has voluntarily resigned his positions as an
employee and officer of Exide, effective October 15, 1998; and

          Whereas, Mr. Pearson has voluntarily resigned his position as a
director of Exide, effective October 15, 1998; and

          Whereas, Mr. Pearson and Exide wish to provide for an orderly
transition that serves their mutual and individual interests.

          Now therefore, in consideration of the above premises and mutual terms
stated below, and other valuable consideration, the parties agree as follows:

          1.  TRANSITION AND RESPONSIBILITIES.  Effective October 15, 1998, Mr.
              -------------------------------                                  
Pearson has relinquished all his responsibilities and functions as an employee
and officer of Exide. Effective October 15, 1998, Mr. Pearson has relinquished
all his responsibilities and functions as a director of Exide. For a period from
October 15, 1998 through July 20, 2003, Mr. Pearson shall render reasonable
advisory and consulting services to Exide with regard to matters that may be
requested by Exide's Board of Directors or its designee from time to time. As a
consultant pursuant to this Separation Agreement, Mr. Pearson shall perform only
those tasks on behalf of Exide, communicate only with those Exide employees or
representatives, and avail himself only to those Exide facilities or resources
as specifically authorized by Exide's Board of Directors or its designee. Such
consulting services shall not preclude Mr. Pearson from conducting his then-
current business affairs consistent with his obligations under this agreement.

          2.  SEPARATION BENEFITS. Subject to Mr. Pearson complying with all his
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obligations in Paragraphs 1, 6, 8, 9, 10, 11, 13, and 14 of this Agreement,
Exide will provide him with the, following:

               A. Forgiveness of a certain promissory note provided by Mr.
     Pearson to Exide in the amount of $225,000.00 during 1998.

               B. In compromise of any claims Mr. Pearson may have, payment at
     an annual rate of $ 450,000.00 through July 20, 2003 at which time Mr.
     Pearson will have reached age 59 1/2.  Such payments will be made in
     monthly installments according to Exide's normal payroll practices
     commencing on the first payroll date following October 15, 1998, and
     deducted from these payments in equal amounts over the term of the payments
     will be $339,000 representing the call for capital paid by Exide to Morgan
     Stanley in October 1998.

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               C. Continue Mr. Pearson and his dependents in Exide's group
     medical and dental plans through July 20, 2003.  Exide will pay directly to
     the insurance provider all premiums through July 20, 2003 for participation
     of Mr. Pearson and his dependents in Exide's group medical and dental
     plans.  Following July 20, 2003, Mr. Pearson and his dependents shall be
     notified of and eligible for COBRA continuation coverage.

               D. Provide Mr. Pearson title on or about November 15, 1998 to his
     current company car.

               E. Retention of all options granted to Mr. Pearson under the 1993
     Stock Option Plan and the 1997 Stock Option Plan, as amended in section 5
     at the October 15, 1998 Board of Directors meeting.  Such options shall be
     vested so that Mr. Pearson shall have the right to exercise the options up
     to and through the dates provided in those Plans, whether or not Mr.
     Pearson is retired or employed as of such date.

               F. Exide acknowledges that this Agreement is not intended to
     affect any rights under Exide's Selective Executive Retirement Agreement
     with Mr. Pearson which previously have vested, and in accordance with the
     terms of the Selective Executive Retirement Agreement, Mr. Pearson shall be
     entitled to benefits upon reaching the age of 59 1/2.

               G. Any compensation previously and correctly deferred by Mr.
     Pearson under the terms of the Exide Deferred Compensation Plan, together
     with any accrued interest and earnings thereon and all amounts attributable
     thereto.  Upon the execution of this Agreement, Mr. Pearson shall receive
     in a lump sum any such compensation under the plan.

               H. Reasonable expenses incurred in connection with performance of
     any advisory and consulting services performed hereunder.

               I. Nothing contained in this Separation Agreement shall serve to
     restrict or enlarge any rights, if any, Mr. Pearson may have with respect
     to Exide's Stock Option Plan or Selective Executive Retirement Agreement,
     other than as may be set forth herein.

          Mr. Pearson acknowledges that Exide makes no representation or
warranties of any kind to him concerning the tax consequences, if any, of any
separation benefits Mr. Pearson receives under this Agreement. Mr. Pearson
agrees to pay any federal, state or local taxes which are assessed against him
with respect to any such benefits.

          Mr. Pearson' failure to perform under paragraphs 5, 6, 7, 8, 9 and 12
of this Agreement shall void Exide's obligations of payment under subparagraphs
2A and 2C but otherwise shall not affect the parties' rights or obligations
under this Agreement.

          3.  Mutual Release.
              ---------------

               A. Mr. Pearson, on behalf of himself and his agents, assignees,
     attorneys, heirs, executors and administrators, releases, forever
     discharges and covenants not to sue Exide (including any current, former or
     subsequent predecessor, successor, 

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     assignee, parent, subsidiary or affiliate of Exide, and each of their
     respective officers, directors, employees, representatives or agents) with
     respect to any liability, claim, demand, action, cause of action, suit,
     grievance, debt, sum of money, controversy, agreement (including, without
     limitation, any Employment Agreement previously made between Mr. Pearson
     and Exide), promise, damage, demand, back pay, front pay, cost, expense,
     attorney's fees or remedy of any type, known or unknown, which Mr. Pearson
     has, may have or has ever had, in law or equity, or before any federal,
     state or local court or administrative agency, through the date of Mr.
     Pearson' execution of this Agreement on account of, or in relation to, any
     matter, cause, circumstance, act or omission arising out of or in
     connection with any claims, demands or actions under any federal, state or
     local statute or regulation, or the common law of any state, regarding in
     any way discrimination in employment or termination of employment, except
     where a claim is based upon intentional misconduct.

               There is expressly reserved from the effect of this release any
          claim which Mr. Pearson may now or hereinafter have, or benefit which
          the Exide Board of Directors in its discretion may grant, with respect
          to (i) this Agreement; (ii) Exide's indemnification obligations, which
          will continue in full force and effect as to Mr. Pearson' actions
          prior to the date hereof, including but not limited to Exide's
          obligations under the articles of incorporation and the by-laws of
          Exide, and state law; (iii) employee or director and officer liability
          insurance; (iv) Mr. Pearson's entitlement to and rights under Exide's
          stock option plan, employee pension plan and supplemental executive
          retirement plan; and (v) defense by Exide for any acts or omissions
          occurring or alleged to have occurred in connection with Mr. Pearson'
          employment with or resignation from Exide.

               B. Except as agreed herein, Exide, on behalf of itself and any
     current, former or subsequent predecessor, successor, assignee, parent,
     subsidiary or affiliate of Exide, and each of their respective officers,
     directors, employees, representatives or agents releases, forever
     discharges and covenants not to sue Mr. Pearson with respect to any
     liability, claim, demand, action, cause of action, suit grievance, debt,
     sum of money, controversy, agreement (including, without limitation, any
     Employment Agreement previously made between Mr. Pearson and Exide),
     promise, damage, demand, back pay, front pay, cost, expense, attorney's
     fees or remedy of any type, known or unknown, which Exide has, may have or
     has ever had, in law or equity, or before any federal, state or local court
     or administrative agency, through the date of Exide's execution of this
     Agreement on account of, or in relation to, any matter, cause,
     circumstance, act or omission arising out of or in connection with Mr.
     Pearson's employment with or resignation from Exide, including any claims,
     demands or actions under any federal, state or local statute or regulation,
     or the common law of any state, except where a claim is based on
     intentional misconduct.

               There is expressly reserved from the effect of this release any
          claim which Exide may now or hereinafter have with respect to (i) this
          Agreement; (ii) Mr. Pearson's obligations under any indemnification
          agreement, which will continue in full force and effect as to Mr.
          Pearson's actions prior to the date hereof, including but not limited
          to obligations under the articles of incorporation and the 

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          bylaws of Exide, and state law; (iii) employee or director and officer
          liability insurance; (iv) Mr. Pearson's entitlement to and rights
          under Exide's stock option plan, employee pension plan and Selective
          Executive Retirement Agreement; and (v) defense by Exide for any acts
          or omissions occurring or alleged to have occurred in connection with
          Mr. Pearson's employment with or resignation from Exide.

          4.  ADEA RELEASE.  Mr. Pearson specifically agrees that:
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               A. He is releasing any and all claims under the Age
     Discrimination in Employment Act of 1967, as amended by the Older Workers
     Benefit Protection Act, arising up to the date of the execution of this
     Separation Agreement;

               B. The consideration he will receive is greater than normally
     provided by Exide's policies to a person of his length of service and
     responsibility;

               C. He consulted with an attorney of his choice before he executed
     this instrument,

               D. He has been given 21 days from the date of presentation of
     this Separation Agreement to decide whether to sign the document, and

               E. He has 7 days from the execution of the Separation Agreement
     to revoke its execution. In the event of such revocation, all obligations
     of Exide under this instrument shall immediately cease.

          5.  RETURN OF EXIDE PROPERTY. Mr. Pearson shall immediately return to
              ------------------------                                         
Exide any of its property in his possession or control including, without
limitation, all automobiles, cellular telephones, pagers, computers, credit
cards, documents (including, without limitation, written or computer-based
materials and other information contained in any tangible medium of expression
or recording, and any copies, excerpts, summaries, compilations or abridgments
thereof) and other property of any kind, except as otherwise provided herein.
Mr. Pearson shall immediately clear any outstanding cash advances or Exide
credit card charges by filing appropriate expense reports and making any
appropriate repayments. Exide shall promptly reimburse Mr. Pearson for all
outstanding expenses reimbursable in accord with Exide's policy upon filing of
appropriate expense reports.

          6.  CONFIDENTIAL INFORMATION.  Mr. Pearson acknowledges that during
              ------------------------                                       
his employment with Exide, he has had access to and was provided with certain
proprietary trade secrets and confidential business information, including,
without limitation, Exide's prior, current and future financing, financial and
funding information or strategies, the communications made to and between its
corporate directors, and Exide's accounting and litigation plans or strategies.
Mr. Pearson further acknowledges that all the above proprietary trade secrets
and confidential business information (i) remain unknown to Exide's competitors
and to the general public, (ii) derive independent actual or potential economic
value from the fact that such secrets and information are kept confidential, and
(iii) Exide's proprietary trade secrets and confidential business information
are the subjects of Exide's efforts, which are reasonable under the
circumstances, to maintain their secrecy.

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          7.  CONFIDENTIALITY COVENANT. Mr. Pearson shall not disclose any
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proprietary trade secret information or any other confidential business
information belonging to Exide to anyone other than his attorneys or Exide, its
officers, directors, employees, agents, affiliates, successors and assigns, or
as directed by Exide, unless required to do so by a court or government agency
or as necessary to perform any advisory and consulting services hereunder.

          8.  RESTRICTIVE COVENANTS.  In view of Mr. Pearson's access to Exide's
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proprietary trade secrets and confidential business information, and in
consideration of the value of such property to Exide, for the period commencing
November 1, 1998 and ending July 20, 2003, Mr. Pearson shall not directly or
indirectly;

               A. Own, manage, operate, control, be employed by, participate in
     or be connected or affiliated in any manner with the ownership, management,
     operation or control of, any business which shall directly or indirectly
     compete with any of the businesses conducted by Exide or any of its
     successors, subsidiaries, divisions, or affiliates at the time of the
     execution of this Agreement.

               B. Contact, solicit, or accept the trade or patronage of any of
     the customers of Exide for himself or any other person or entity, with
     respect to the business engaged in by Exide. The term "customers" shall
     include, without limitation, the officers, directors, agents, employees,
     parents, subsidiaries and affiliates of such customers, and all persons or
     organizations with whom Exide has done business within the period of Mr.
     Pearson' employment by Exide or whom Mr. Pearson is requested by Exide to
     contact or communicate with on behalf of Exide during the term of this
     Agreement.

               C. Solicit, induce or attempt to induce any other employee,
     officer, director, or agent of Exide to leave Exide's employ or engagement
     to become connected in any with, or employ or utilize any such employee,
     officer, director or agent in, any other business which shall directly or
     indirectly compete with any of the businesses conducted by Exide or any of
     its successors, subsidiaries, division, or affiliates at the time of the
     execution of this Agreement.

          9.  INJUNCTIVE RELIEF.  In view of Mr. Pearson's access to Exide's
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proprietary trade secrets and confidential business information, and in
consideration of the value of such property to Exide, Mr. Pearson agrees that
the covenants contained in Paragraphs 7 and 8 above are necessary to protect
Exide's interests in its confidential matter, and to protect and maintain
customer relationships and other legitimate, proprietary interests of Exide,
both actual and potential, which Mr. Pearson would not have had access to but
for his employment relationship with Exide.  Mr. Pearson acknowledges that
without enforcement of the covenants set forth herein, Exide would be
irreparably harmed and the full extent of injury resulting therefrom would be
impossible to calculate and Exide therefore will not have an adequate remedy at
law, Accordingly, Mr. Pearson agrees that temporary and permanent injunctive
relief would be appropriate remedies against such breach, without bond or
security; provided; however, that nothing herein shall be construed as limiting
any other legal or equitable remedies available to Exide.

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          10.  POSITIVE LIGHT.  Mr. Pearson will use his best efforts to insure
               --------------                                                  
that all his own written and oral communications, and any such communications
over which he has any control by other persons, will promote Exide, its current
or former officers, directors or agents, in a clearly positive and favorable
light.  Exide will use its best efforts to insure that all its own written and
oral communications, and any such communications by other persons over whom it
has any control, will promote Mr. Pearson in a clearly positive and favorable
light. The parties also will use their respective best efforts to project a
positive and favorable attitude toward each other, and to instill a similar
attitude in other people. At no time will the parties, individually or through
any other person or entity, in any manner make, disseminate or participate in
any disparaging, defamatory, negative or adverse statements concerning each
other. Nothing contained in this Paragraph shall be construed as prohibiting
Exide or its employees and Mr. Pearson from providing truthful information.

          11.  LEGAL SUPPORT.  Mr. Pearson acknowledges that as the former
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President of North American Operations of Exide, he will be called upon to
cooperate in the prosecution and/or defense of any litigation where his
participation is necessary or deemed desirable by Exide. Mr. Pearson agrees that
he will, at all times, make himself readily available to diligently assist the
Corporation in these matters.  Mr. Pearson will be entitled to reimbursement for
the normal travel and accommodation expenses associated with these prosecutions
and/or litigations.


          12.  CONFIDENTIAL TERMS.   Mr. Pearson and Exide each warrant that the
               ------------------                                               
terms of this Agreement will be regarded as a strictly confidential
communication between the parties, and that neither party will, by act or
omission, in any manner or means, disclose the terms or the Agreement to any
person or entity. This warranty does not apply to Mr. Pearson's disclosures to
his spouse, financial and tax advisors, lawyers, any court or government agency,
or as necessary to enforce the terms of this Agreement, to Exide's disclosures
to its financial advisors, lawyers and persons or entities with a need to know,
or to disclosures of either party required by law.

          13.  NO ADMISSION.  The parties to this instrument acknowledge and
               ------------                                                 
agree that Exide's execution of this Separation Agreement does not constitute
and shall not be construed as an admission of wrongdoing of any kind on the part
of the entities and persons hereby released, by whom wrongdoing of any kind is
expressly denied.

          14.  INTEGRATION.  Mr. Pearson acknowledges that the only
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consideration for this Separation Agreement is described in this instrument;
that no other promise or agreement of any kind has been made to or with him by
any person or entity whatsoever to cause him to execute this Separation
Agreement; that this instrument constitutes the entire agreement between the
parties, and the terms set forth herein are contractual and not a mere recital.

          15.  WAIVER.  Any failure either by Exide or Mr. Pearson to insist on
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strict compliance with any of the terms, covenants and conditions of this
Agreement shall not be deemed a waiver or relinquishment of such terms,
covenants and conditions or of any similar right or power hereunder at any
subsequent time.

          16.  SEVERABILITY.  If any provision of this Agreement shall be
               ------------                                              
declared by any court to be void or unenforceable, the other provisions shall
not be affected but shall remain in 

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full force and effect. Furthermore, if any of the restrictions against various
post-employment activities is found to be unreasonable or invalid, the court
before which the matter is pending shall enforce the restriction to the maximum
extent it deems to be valid and enforceable. Such restrictions shall be
considered divisible both as to time and as to geographical scope, with each
month and geographical area being deemed separate.

          17.  SUCCESSORS.  This Separation Agreement shall be binding upon
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Exide and Mr. Pearson, and their respective heirs, personal representatives,
successors and assigns.

          18.  GOVERNING LAW.  This Agreement shall be construed in accord with
               -------------                                                   
and governed by the laws of the State of Michigan.

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          19.  KNOWING AND VOLUNTARY SIGNING.  Mr. Pearson acknowledges that he
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is represented by counsel, that counsel has explained to him all the terms of
this Separation Agreement, and that he has voluntarily signed it intending it to
legally bind him. Exide, by its designated representative, whose signature
appears below, acknowledges that it is represented by counsel, that counsel has
explained all the terms of this Separation Agreement to Exide's Board of
Directors, and that the Board of Directors has duly authorized its execution,
intending it to legally bind Exide.

                                 EXIDE CORPORATION



 /s/Douglas N. Pearson           By: /s/Arthur R. Taylor
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    Douglas N. Pearson                  For the Board of Directors

 November 10, 1998               By: November 10, 1998
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    Dated                               Dated

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