December 20, 2007

Ian J. Harvie
2832 Ogden Street
Philadelphia, PA 19130

Dear Ian:

            C&D  Technologies,  Inc., a Delaware  corporation  (the  "Company"),
wishes to  continue  to employ  you in an  executive  capacity  and the  Company
desires to encourage such employment by providing certain protections for you by
entering  into  this  Agreement  with you,  in return  for which you agree to be
employed by the Company on the terms set forth  herein,  to refrain from certain
competitive  activity and to provide the Company with  certain  assurances  upon
your departure.  In consideration of same, the Company agrees to employ you, and
you agree to accept such employment, under the following terms and conditions:

            1.    Term  of  Employment.  Your  employment  under  this Agreement
shall  continue in effect  until  either  party shall give to the other party at
least 30 days  prior  written  notice  (or such  other  notice  period as may be
specifically  provided  for in  this  Agreement)  of  the  termination  of  this
Agreement (a "Termination Notice"), or until it is terminated in accordance with
Section 8. If a Termination  Notice is given by either party the Company  shall,
without any liability to you, have the right, exercisable at any time after such
notice is sent to elect any other  person to the  office or offices in which you
are then  serving  and to remove  you from such  office or  offices.  The period
during which you are employed under this  Agreement is hereafter  referred to as
the "Term."

            2.    Compensation and Benefits.

            (a)   During the Term,  you shall receive a salary  for  performance
of your  obligations  under this  Agreement  at an initial  rate of $335,000 per
year,  payable  in such  manner  as is  consistent  with the  Company's  payroll
practices for executives and subject to increase (but not decrease) by the Board
of Directors in its sole  discretion.  Such salary,  as it may be adjusted  from
time to time, is hereinafter referred to as the "Base Salary."

            (b)   During  the Term,  you  shall  have  the  benefit  of  and  be
entitled to participate in such employee  benefit plans and programs,  including
life,  disability and medical insurance,  savings,  retirement and other similar
plans,  as the Company now has or hereafter may establish from time to time, and
in which you are  entitled to  participate  pursuant to the terms  thereof.  The
foregoing,  however,  shall not be construed to require the Company to establish
any such plans or to prevent the Company from modifying or terminating  any such
plans, and no such action or failure thereof shall affect this Agreement.

<PAGE>

            (c)   During the Term, you  shall  be entitled (i) to participate in
the Company's  Management  Incentive  Compensation Plan or any successor thereto
each year in accordance  with criteria and for amounts  approved by the Board of
Directors, except as may otherwise be delegated to the Compensation Committee or
other relevant committee, and (ii) to be granted options to acquire stock of the
Company  or  other  equity  awards,  to the  extent  (if  any)  approved  by the
Compensation  Committee or the relevant  committee,  under the  Company's  stock
option or equity  incentive  plans in effect from time to time (all such options
and equity awards,  "Awards").  Without limiting the foregoing, you shall have a
minimum targeted bonus for each fiscal year of 35% of your Base Salary (with the
actual payment of any bonus being dependent on your or the Company's achievement
of targeted objectives except as otherwise set forth in this Agreement). Each of
the actual annual bonuses paid to you each year is hereinafter referred to as an
"Annual Bonus."

            (d)   You shall be entitled to payments and  benefits in  connection
with a Change of Control  Termination  (as  defined in Exhibit A hereto)  and to
certain  additional  payments if you are subjected to the federal  excise tax on
excess parachute payments, as more fully set forth in Exhibit A.

            (e)   To the extent that any  payment  hereunder  or under any plan,
program or policy is determined to be nonqualified deferred compensation that is
noncompliant  with Section 409A ("Section 409A") of the Internal Revenue Code of
1986, as amended (the "Code"),  and is therefore subject to additional taxes and
penalties,  the Company shall provide you with additional payments as more fully
set forth in Exhibit A. Any reference to Section 409A shall be deemed to include
any applicable guidance that has been provided thereunder.

            (f)   You shall be entitled  to a minimum of four  weeks of vacation
each calendar year during the Term. To the extent that Company  policy  provides
additional vacation days, you shall also be entitled to such additional vacation
days.  Any unused  vacation  days in any one year  shall  carry over to the next
calendar year.

            (g)   The Company will  provide  you at its  expense  with an annual
physical examination each year during the Term.

            3.    Duties.

            (a)   During the Term,  you shall serve and the Company shall employ
you as the Vice President and Chief Financial Officer of the Company,  with such
executive duties and responsibilities consistent with such positions and stature
as the Chief  Executive  Officer of the Company may from time to time determine.
Your  duties may be changed  at any time and from time to time  hereafter,  upon
mutual  agreement,  consistent  with the office or offices in which you serve as
deemed necessary by the Chief Executive Officer of the Company. You shall report
to, and act under the general  direction of, the Chief Executive  Officer of the
Company.  You shall use your best efforts to carry out the  instructions  of the
Chief  Executive  Officer of the  Company.  You also agree to perform such other
services  and  duties  consistent  with the  office or  offices in which you are
serving from time to time and those responsibilities as may from time to time be
prescribed  by the Board of  Directors.  You also  agree to serve as an  officer
and/or  director  of the Company  and/or any of the  Company's  other  direct or
indirect  subsidiaries,  in all  cases in

                                       -2-

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conformity  with the  organizational  documents and the policies of the Board of
Directors of each such subsidiary,  without  additional  compensation.  You will
review and agree to comply  with the  Company's  then-current  Code of  Business
Conduct to the same extent required for other United  States-based  employees of
the Company.  You will perform all of your  responsibilities  in compliance with
all  applicable  laws.  You  acknowledge  that in  your  capacity  as  principal
financial  officer of the  Company,  you will be  expected  to  execute  certain
documents on behalf of the Company under the federal  securities laws, which may
include  documents  covering periods prior to the date of this Agreement.  As of
the date of this Agreement,  you have no reason to believe that you would not be
prepared  to execute all  documents  required  for  signature  by the  Company's
principal  financial officer (e.g., the Company's Annual Report on Form 10-K for
the fiscal year ended  January 31,  2007),  assuming  that the  Company's  chief
executive  officer and certifying  financial and other  employees of the Company
were also prepared to execute or certify such documents as the case may be.

            (b)   During  the Term, you  shall devote your  entire business time
and energies  during  normal  business  hours to the business and affairs of the
Company and its  subsidiaries.  Nothing in this  Section 3 shall be construed as
prohibiting  you from investing your personal assets in businesses in which your
participation  is solely  that of a passive  investor  in such form or manner as
will not violate  Section 5 hereof or require  any  services on your part in the
operation  or  affairs  of  those  businesses.   You  may  also  participate  in
philanthropic  or civic  activities as long as they do not materially  interfere
with  your  performance  of your  duties  hereunder.  Service  on any  board  of
directors other than those of the Company and its subsidiaries must be approved,
in advance, by the Board of Directors of the Company.

            (c)   During the Term, you shall be subject to the Company's  rules,
practices and policies applicable to the Company's  senior  executive employees.

            4.    Expenses. The Company shall reimburse  you for all  reasonable
expenses incurred by you during the Term in connection with your employment upon
presentation  of  appropriate  documentation  therefor  in  accordance  with the
Company's  expense  reimbursement  practices.  In the event  during the Term the
Company's principal executive offices are relocated to a location that increases
your commute to work by more than 35 miles,  the Company  shall  reimburse  your
moving  expenses   (including   reasonable  costs  relating  to  interim  living
accommodations).

            5.    Restrictive Covenants.

            (a)   During the Term,  and for the applicable Restricted Period (as
defined below)  thereafter,  you shall not,  without the written  consent of the
Board of Directors,  directly or  indirectly,  become  associated  with,  render
services  to,  invest  in,  represent,  advise or  otherwise  participate  as an
officer,  employee,  director,  stockholder,  partner  or  agent  of,  or  as  a
consultant for, any business  anywhere in the world that is competitive with the
business  in which the  Company  is engaged  or in which the  Company  has taken
affirmative  steps to  engage  (a  "Competitive  Business")  as of the time your
employment with the Company ceases;  provided,  however, that (i) nothing herein
shall  prevent you from  investing in up to 5% of the  securities of any company
listed on a  national  securities  exchange  or quoted on the  NASDAQ  quotation
system,  as long as your  involvement  with any such company is solely that of a
stockholder,  and

                                       -3-

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(ii)  nothing  herein is  intended  to prevent  you from being  employed  by, or
otherwise rendering services to, any business other than a Competitive  Business
following the termination of your  employment  with the Company.  The Restricted
Period  shall  be  the  one-year  period  following  the  date  your  employment
terminates. You acknowledge that the provisions of this Section 5 are reasonable
in light of the  Company's  worldwide  business  operations  and the position in
which you will serve at the Company and that the provisions will not prevent you
from obtaining employment after the termination of this Agreement.

            (b)   The parties  hereto intend that the covenant contained in this
Section 5 shall be deemed a series of separate  covenants  for each  appropriate
jurisdiction.  If, in any judicial  proceeding,  a court shall refuse to enforce
all of the separate covenants deemed included in this Section 5 on grounds that,
taken together,  they cover too extensive a geographic  area, the parties intend
that those covenants (taken in order of the least populous jurisdictions) which,
if eliminated,  would permit the remaining  separate covenants to be enforced in
that proceeding, shall, for the purpose of such proceeding, be deemed eliminated
from the provisions of this Section 5.

            6.    Confidentiality, Noninterference and Proprietary Information.

            (a)   In the course of your employment by the Company  hereunder you
will have access to  Confidential  or  Proprietary  Data or  Information  of the
Company.  You shall not at any time divulge or  communicate  to any person,  nor
shall you direct any Company  employee to divulge or  communicate  to any person
(other than to a person bound by  confidentiality  obligations  similar to those
contained  herein  and  other  than  as  necessary  in  performing  your  duties
hereunder)  or use to the  detriment  of the  Company or for the  benefit of any
other person,  any of such  Confidential  or  Proprietary  Data or  Information,
except to the extent the same (i) becomes  publicly  known other than  through a
breach of this  Agreement by you, (ii) was known to you prior to the  disclosure
thereof by the Company to you from a source that was entitled to disclose it, or
(iii) is  subsequently  disclosed  to you by a third  party  who  shall not have
received it under any obligation of confidentiality to the Company. For purposes
of this Agreement,  the term  "Confidential  or Proprietary Data or Information"
shall mean data or information not generally available to the public,  including
personnel information,  financial  information,  customer lists, supplier lists,
product  and  tooling  specifications,  trade  secrets,  information  concerning
product  composition  and  formulas,  tools and dies,  drawings and  schematics,
manufacturing processes, information regarding operations, systems and services,
know-how,  computer  and any  other  electronic,  processed  or  collated  data,
computer programs, and pricing, marketing, sales and advertising data.

            (b)   You  shall  not,  during  the  Term  and  for  the  applicable
Restricted Period after the termination of your employment with the Company, for
your own account or for the account of any other  person,  (i) solicit or divert
to any  Competitive  Business any individual or entity who is then a customer of
the Company or any  subsidiary or affiliate of the Company or who was a customer
of the Company or any subsidiary or affiliate during the preceding  twelve-month
period,  (ii) employ,  retain as a consultant,  attempt to employ or retain as a
consultant,  or solicit or assist  any  Competitive  Business  in  employing  or
retaining as a consultant  any individual who is then an employee of the Company
or any  subsidiary  or  affiliate  or who was  employed  by the  Company  or any
subsidiary or affiliate during the preceding twelve-month

                                       -4-

<PAGE>

period, or (iii) otherwise  interfere in any material respect with the Company's
relationship  with any of its suppliers,  customers,  employees or  consultants;
provided, however, that you shall not be prohibited from contacting suppliers or
customers  after  termination of your  employment with regard to matters that do
not violate your  non-competition  or confidentiality  obligations  contained in
Sections  5(a) and 6(a) or interfere in any material  respect with the Company's
relationship with such parties.

            (c)   You shall  at  all  times promptly disclose to the Company, in
such form and manner as the Company  reasonably  may  require,  any  inventions,
improvements or procedural or  methodological  innovations,  programs,  methods,
forms,  systems,  services,  designs,  marketing  ideas,  products or  processes
(whether or not capable of being trademarked, copyrighted or patented) conceived
or developed  or created by you during and in  connection  with your  employment
hereunder  and  which  relate  to the  business  of the  Company  ("Intellectual
Property").  All such  Intellectual  Property  shall be the sole property of the
Company.  You shall execute such instruments and perform such acts as reasonably
may be  requested  by the  Company to transfer to and perfect in the Company all
legally  protectable  rights in such  Intellectual  Property.  If the Company is
unable for any reason to secure your signature on such  instruments,  you hereby
irrevocably  appoint the Company and its  officers and agents as your agents and
attorneys-in-fact  to execute  such  instruments  and to do such things with the
same legal force and effect as if executed or done by you.

            (d)   All written, electronic and other tangible  materials, records
and documents made by you or coming into your possession  during your employment
concerning any products, processes or equipment,  manufactured, used, developed,
investigated  or considered by the Company or otherwise  concerning the business
or affairs of the Company,  shall be the sole property of the Company,  and upon
termination of your  employment,  or upon the request of the Company during your
employment,  you  shall  deliver  the same to the  Company.  In  addition,  upon
termination  of your  employment,  or upon  request of the  Company  during your
employment,  you shall deliver to the Company all other Company property in your
possession or under your control,  including Confidential or Proprietary Data or
Information and all Company credit cards and computer and telephone equipment.

            7.    Equitable  Relief.  With respect to the covenants contained in
Sections 5 and 6 of this Agreement,  you acknowledge  that any remedy at law for
any breach of said covenants may be inadequate and that the Company, in addition
to its rights at law,  shall be entitled to  specific  performance  or any other
mode of injunctive or other equitable relief to enforce its rights hereunder.

            8.    Termination  of  Term.  The  Term  shall  terminate  upon  the
following terms and conditions:

            (a)   The Term shall automatically terminate upon your death.

            (b)   The  Term  may   be  terminated  by   the  Company  upon  your
Disability.  For  purposes  of this  Agreement,  "Disability"  shall  mean  your
inability,  due to reasons of physical or mental health, to discharge properly a
substantial  portion of your duties  hereunder  for any 180 days (whether or not
consecutive) during any period of 365 consecutive days, as determined in

                                       -5-

<PAGE>

the opinion of a physician reasonably  satisfactory to both you and the Company.
If the parties do not agree on a mutually satisfactory physician within ten days
after written demand by one or the other,  a physician  shall be selected by the
president of the  Pennsylvania  Medical  Association,  and the physician  shall,
within 30 days thereafter,  make a determination as to whether Disability exists
and certify the same in writing. The services of the physician shall be paid for
by the  Company.  You  shall  fully  cooperate  with  the  examining  physician,
including  submitting  yourself to such  examinations as may be requested by the
physician for the purpose of determining whether you are disabled.

            (c)   The Term shall terminate immediately if the Company terminates
your employment for Cause.  For purposes of this Agreement,  "Cause" shall exist
upon a finding by the Board of Directors of any of the following:  (i) an act or
acts of willful  material  misrepresentation,  fraud or  dishonesty  by you that
results in the  personal  enrichment  of you or another  person or entity at the
expense of the Company;  (ii) your  admission,  confession  or conviction of any
felony or any other crime or offense  involving  misuse or  misappropriation  of
money or other  property;  (iii) any act involving  gross moral turpitude by you
that adversely and materially affects the Company; (iv) your continued breach of
any of your material  obligations under this Agreement 30 days after the Company
has given you notice thereof in reasonable  detail,  if such breach has not been
cured by you during such period; or (v) your willful  misconduct with respect to
your duties or gross misfeasance of office.

                  For purposes of this  Section  8(c), no act or failure to act,
on your part shall be considered  "willful"  unless it is done, or omitted to be
done,  by you in bad faith or  without  reasonable  belief  that your  action or
omission was in the best  interests of the Company.  Any act, or failure to act,
based upon authority given pursuant to a resolution duly adopted by the Board of
Directors  or  based  upon  the  advice  of  counsel  for the  Company  shall be
conclusively  presumed to be done,  or omitted to be done,  by you in good faith
and in the best interests of the Company.  Your  termination of employment shall
not be deemed to be for Cause unless prior to such termination you have received
a copy of a resolution duly adopted by the  affirmative  vote of not less than a
majority of the disinterested  membership of the Board of Directors at a meeting
of such Board of Directors  called and held for such purpose  (after  reasonable
notice is provided to you and you are given an  opportunity  to be heard  before
such Board of  Directors),  stating  the clause  pursuant  to which the Board of
Directors  has  effected  your  termination.  If you  appeal  this  decision  to
arbitrators  pursuant to Section 23, the arbitrators shall be required to make a
de novo  review  of the  circumstances  of your  termination  and  independently
determine whether facts exist to support such termination.

            (d)   The Term shall terminate if your employment is terminated in a
Change of Control Termination (as defined in Exhibit A).

            (e)   The  Term  shall terminate  upon  the expiration of the thirty
(30) day period after  delivery of a  Termination  Notice if your  employment is
terminated by the Company  without Cause or voluntarily by you (a termination by
you not due to Breach or a termination by you without Good Reason).

            9.    Compensation  Upon  Termination of  Employment. Separation pay
shall be paid in accordance with the schedule set forth below upon a termination
of employment

                                       -6-

<PAGE>

that constitutes a "separation from service" as defined under Section
409A  ("Separation  from  Service").  If a termination  of  employment  does not
constitute a Separation from Service, separation pay shall be paid at such later
time that a Separation from Service occurs. For purposes of this Agreement,  the
default  definition  of  Separation  from  Service  under the Final  Regulations
promulgated under Section 409A shall be employed.

         (a) For Any Reason.  Upon  termination of  employment:  (i) you or your
estate,  as applicable,  shall be paid within  fifteen  business days after your
date of termination  (A) your accrued and unpaid Base Salary through the date of
termination,  (B) any  then-vested  and unpaid  Annual Bonus or other  incentive
compensation  that you may have earned  pursuant to the terms of any  applicable
incentive  compensation  or bonus plan of the Company with respect to any fiscal
year or other  performance  period  completed prior to your date of termination,
and (C) any  then-unused  accrued  vacation pay;  (ii) you,  your  beneficiaries
and/or  your  estate,  as  applicable,  shall be entitled  to any  payments  and
benefits under the benefits and incentive  plans and perquisite  programs of the
Company,  in accordance with the respective  terms of those plans and perquisite
programs (including without  limitation,  any conversion option available to you
under the Company's life insurance  plan(s));  and (iii) you or your estate,  as
applicable,  shall be reimbursed  for your business  expenses  incurred prior to
termination in accordance with Section 4 above.

         (b) Change of Control  Termination.  Upon the termination of employment
by reason of a Change of Control Termination, you shall receive the payments and
benefits set forth in Exhibit A.

         (c) Termination  without   Cause  or  Breach   Termination.   Upon  the
termination  of  employment  that  is not  by  reason  of a  Change  of  Control
Termination,  but results from either (1) a termination  by the Company  without
Cause (excluding a termination due to death or Disability), or (2) a termination
by you which is a Breach  Termination (as defined below), you shall also receive
the  following  payments;  provided,  however,  that any payment made under this
Section  9(c) shall be reduced by any amount paid or payable to you with respect
to the same type of payment  under any other plan  maintained  by the Company to
avoid duplication of payments:

            (i)   The Company shall pay you an amount  equal to your Base Salary
            at the rate in effect on the date of  termination.  Payment  of such
            amount  will  commence  in the form of normal  payroll  installments
            through  the  period  ending  as of  the  end of  the  second  month
            following  the  later  of  (A)  the  calendar  year  in  which  your
            termination  of  employment  occurs or (B) the  taxable  year of the
            Company in which your termination of employment  occurs. The balance
            of such payments  shall be made in a single lump sum payable  within
            the fifteen day period immediately following the end of the month in
            which installment payments are to cease.

            (ii)  If you  terminate  employment  on or after May 1st of a fiscal
            year, you shall be entitled to an Annual Bonus for that fiscal year,
            based on the actual bonus earned under the applicable bonus plan for
            the fiscal year,  pro-rated  to reflect the number of business  days
            during the fiscal year in which you were  employed  by the  Company.
            This bonus shall be paid only when and if bonuses

                                       -7-

<PAGE>

            are paid to other  senior  executives  of the Company for such year,
            but,  if any such bonus is  payable,  it shall be paid no later than
            the 15th day of the third  month  following  the  earlier of (A) the
            calendar year in which your termination of employment  occurs or (B)
            the  taxable  year of the  Company  in  which  your  termination  of
            employment occurs.

            As  used  in this  Section  9(c),  a  "Breach  Termination"  means a
termination of your employment by you by written Termination Notice given to the
Company  within 90 days  after the  occurrence  of any action or  inaction  that
constitutes  a material  breach by the Company of the  Agreement.  A Termination
Notice for a Breach  Termination  shall indicate the specific action or inaction
that constitutes the material breach,  shall set forth in reasonable  detail the
facts and circumstances  claimed to provide a basis for the Breach  Termination,
and shall provide the Company a minimum of 30 days in which to remedy such facts
or circumstances. Your failure to set forth in such Termination Notice any facts
or circumstances which contribute to the showing of Breach Termination shall not
constitute  your waiver of any right  hereunder or preclude  you from  asserting
such fact or  circumstance in enforcing your rights  hereunder.  The Termination
Notice for a Breach Termination shall provide for a date of termination not less
than 30 nor more than 60 days after the date such Termination Notice is given.

            Notwithstanding the foregoing, should a termination of employment by
the Company without Cause or a Breach  Termination occur within six months prior
to, or within two years after, a Change of Control,  your  termination  shall be
considered  a Change of Control  Termination  and you shall vest in the payments
and  benefits  set forth in Exhibit A. Any such  payments or  benefits  shall be
offset  by any  payments  or  benefits  that you may have been  already  paid or
received due to the  occurrence of the  termination  of employment  prior to the
Change of Control, and shall be paid in accordance with Exhibit A.

            (d)   The  payment  by  the  Company  of  any  compensation  or  the
provision of benefits,  if any,  pursuant to Section 9(c) and Exhibit A shall be
conditioned on your execution, without revocation, of a Release (a "Release") in
a form  provided  by and  acceptable  to the  Company.  Such  Release  shall  be
substantially in the form of Exhibit B hereto but may be modified by the Company
in its sole  discretion  as it deems  appropriate  to reflect  changes in law or
circumstances arising after the date of this Agreement;  provided, however, that
no such  modification  shall reduce your rights or increase your  obligations to
the Company over those  contemplated in this  Agreement,  including the Exhibits
hereto.  No Release shall be required for any benefits to which you are entitled
under the terms of any plan.

            10.   Indemnification. At all times, prior to, on or after a  Change
of Control,  the  Company  shall  indemnify  you for your acts as an officer and
director to the fullest  extent  permitted by law.  Further,  the Company  shall
provide you with advance attorneys fees and expenses to you as they are incurred
subject to presentation of invoices.

            11.   Representations. You hereby represent and warrant that you are
not subject to any  employment  agreement,  non-competition  or  confidentiality
agreement or other  commitment  that either  would be violated by your  entering
into or performing your obligations  under this Agreement or that would restrict
in any manner or interfere with the performance of your  obligations  under this
Agreement. You hereby further represent and warrant that you have

                                       -8-

<PAGE>

not  revealed  to the Company or any  employee  of the Company any  confidential
information of any former employer, and you agree that you will not do so in the
future.

            12.   Entire Agreement;  Modification; Construction. This Agreement,
together  with the  Exhibits  hereto,  all employee  benefit  plans in which you
participate, and any outstanding awards, including,  without limitation,  equity
awards,  constitute  the full and complete  understanding  of the  parties,  and
supersede all prior agreements and understandings,  oral or written, between the
parties,  including, but not limited to the offer letter dated December 15, 2005
and the employment agreement dated February 1, 2006, with respect to the subject
matter hereof.  Exhibit A and Exhibit B are hereby incorporated by reference and
made a part of this Agreement. Each party to this Agreement acknowledges that no
representations,  inducements,  promises or agreements,  oral or otherwise, have
been made by either party, or anyone acting on behalf of either party,  that are
not set forth or  referred  to herein.  This  Agreement  may not be  modified or
amended except by an instrument in writing signed by the parties.

            13.   Severability.  Any term or provision of this Agreement that is
held to be  invalid  or  unenforceable  in any  jurisdiction  shall,  as to that
jurisdiction,  be ineffective to the extent that invalidity or  unenforceability
without rendering invalid or unenforceable the remaining terms and provisions of
this Agreement or affecting the validity or  enforceability  of any of the terms
or provisions of this Agreement in any other jurisdiction.

            14.   Waiver of Breach.  The waiver  by  either party of a breach of
any  provision  of  this  Agreement,  which  waiver  must  be in  writing  to be
effective,  shall not operate as or be construed  as a waiver of any  subsequent
breach.

            15.   Notices.  All notices hereunder shall be  in writing and shall
be sent by messenger or by certified or registered mail, postage prepaid, return
receipt  requested,  if to you, to your residence set forth above, and if to the
Company,  to the Vice  President-Human  Resources,  at the Company's address set
forth above,  or to such other address as either party to this  Agreement  shall
specify to the other.

            16.   Assignability;  Binding  Effect.  This Agreement  shall not be
assignable by either party,  except that it may be assigned by the Company to an
acquirer  of all or  substantially  all of the  assets of the  Company  or other
successor  to the  Company,  subject  to your  rights  arising  from a Change of
Control as provided in Exhibit A and your other rights hereunder. This Agreement
shall  be  binding   upon  and  inure  to  the   benefit  of  you,   your  legal
representatives,  heirs and distributees, and shall be binding upon and inure to
the benefit and detriment of the Company, its successors and assigns. Prior to a
Change of Control, any successor to the Company shall be required to acknowledge
in writing its  obligations  hereunder as successor to the Company to the extent
that the  Company  has not  fulfilled  its  obligations  prior to the  Change of
Control  or any  amounts  or  benefits  are still due to you after the Change of
Control.

            17.   No Mitigation Required. No  Offset.  Following any termination
of your  employment  hereunder,  you  shall  have no  obligation  to seek  other
employment but shall not be prohibited from doing so, and no  compensation  paid
to you as the result of any other employment shall reduce any payment or benefit
required to be provided by the Company

                                       -9-

<PAGE>

hereunder.  Not in  limitation  of any other  rights which the Company may have,
including without limitation, injunctive or other equitable relief, in the event
of a violation by you of any of the  covenants set forth in Section 5, Section 6
or  Section  19 hereof,  the  Company  may cease  paying  any  compensation  and
benefits,  if any,  to you under  Section 9 hereof and may seek  recovery of any
such amount paid to you during any period in which you were in  violation of the
provisions of Section 5, Section 6 or Section 19. The cessation  and/or recovery
of any of the payments  described in Section  9(c) in  connection  with any such
violation  shall  not  be  deemed  to be  evidence  that  monetary  damages  are
sufficient to cure any damage to the Company for any such violation.

            18.   Governing  Law.  All  questions  pertaining  to the  validity,
construction, execution and performance of this Agreement shall be construed and
governed  in  accordance  with the  laws of the  Commonwealth  of  Pennsylvania,
without giving effect to the conflicts or choice of law provisions thereof.

            19.   Nondisparagement.  You  agree  not  to  publicly or  privately
disparage the Company,  its personnel,  products or services  either during your
employment by the Company or during the Restricted Period.

            20.   Survival.  All  of  the  provisions of  this Agreement that by
their  terms are to be  performed  or that  otherwise  are to  endure  after the
termination  of this  Agreement  and/or  the  termination  of  your  employment,
including,  without  limitation,  Sections 5, 6, 7, 10, 17 and 19, shall survive
the  termination  of your  employment  and  shall  continue  in  effect  for the
respective periods therein provided or contemplated.

            21.   Headings. The headings in this Agreement  are intended  solely
for convenience of reference and shall be given no effect in the construction or
interpretation of this Agreement.

            22.   Counterparts.  This  Agreement  may  be  executed  in  several
counterparts,  each of which shall be deemed to be an original  but all of which
together shall constitute one and the same instrument.

            23.   Dispute Resolution.  In the event of any claim or  controversy
arising out of or relating to this Agreement or the  performance,  construction,
interpretation,  enforcement  or breach hereof  (excluding  injunctive and other
equitable relief regarding a dispute over the covenants contained in Sections 5,
6, and 19 hereof) (a "dispute"), the parties shall settle disputes in accordance
with this Section 23.

            (a)   Notice and  Selection of Arbitrators. The parties  shall first
attempt to settle any disputes amicably between themselves.  Should they fail to
do so,  either  party may,  upon written  demand from the claiming  party of the
specific nature of any purported  claims and the amount of damages  attributable
to each such  claim,  served  upon the  other,  submit  such  dispute to binding
arbitration.  The arbitration  panel shall consist of three  arbitrators,  shall
take place in  Philadelphia,  Pennsylvania  and shall proceed in accordance with
the employment dispute resolution rules of the American Arbitration  Association
("AAA").

                                      -10-

<PAGE>

            Within 15 days after the  commencement of  arbitrations,  each party
shall select one arbitrator  from a list of  arbitrators  provided by the AAA. A
third neutral arbitrator shall be designated by the arbitrators  selected by the
parties within 15 days of their appointment. In the event that any arbitrator is
not appointed within the prescribed time period,  then either party may apply to
the AAA for the  appointment of such  arbitrator.  Prior to the  commencement of
hearings, each of the arbitrators appointed shall provide an oath or undertaking
of impartiality.

            (b)   Hearings.  After  the  arbitrators   have  been  appointed  as
provided  above,  the  arbitrators  shall  hold  such  meetings  as a party  may
reasonably  request and at such  meetings  hear and consider any evidence that a
party  desires to  present.  Within 60 days after the  appointment  of the third
arbitrator, the arbitrators shall make their determination.

            (c)   Determinations.   The  determination  of  a  majority  of  the
arbitrators shall be final and binding on the parties, regardless of whether one
of  the  parties  fails  or  refuses  to  participate  in the  arbitration.  The
arbitrators  shall  have the power and  authority  to grant any remedy or relief
they deem just and equitable,  including injunctive relief, specific performance
(excluding,  however,  equitable  relief  regarding a dispute over the covenants
contained in Sections 5, 6 and 19 hereof),  and reasonable costs and expenses of
such  arbitration  and  attorneys'  fees.  Absent  any  specific  order  of  the
arbitrators,  the costs and expenses of the arbitration shall be paid equally by
the  parties.  The  arbitration  award,  decree or order shall be in writing and
shall be  accompanied  by a  reasoned  opinion.  The award may be entered in any
court of competent  jurisdiction,  and any judgment,  decree or order entered in
any such court and any related  orders may be  enforced  as any other  judgment,
decree or order of such court.  The  arbitration  proceedings and all materials,
submissions and documents relating thereto shall be confidential,  and except as
may be  required  by law  neither a party nor an  arbitrator  may  disclose  the
existence,  contents or results of any arbitration hereunder without the consent
of all parties  hereto.  All disputes  shall be resolved in accordance  with the
laws of the Commonwealth of Pennsylvania.

            (d)   Qualifications of  Arbitrators.  Any  arbitrator  chosen by or
through the AAA shall be chosen from a class of disinterested  experts qualified
by education, training and/or experience to resolve the particular issue(s) in a
dispute in an informed and efficient manner.

            (e)   Preservation  of  Remedies.  Notwithstanding   the   preceding
binding  arbitration  provisions,   the  parties  agree  to  preserve,   without
diminution, certain remedies that any party may exercise before, during or after
an  arbitration  proceeding  is  brought.  The  parties  shall have the right to
proceed in any court of proper  jurisdiction  or by  self-help  to  exercise  or
prosecute  the following  remedies,  as  applicable:  obtaining  provisional  or
ancillary remedies,  including injunctive and other equitable relief with regard
to disputes over the covenants contained in Sections 5, 6 and 19 hereof.

                                      -11-

<PAGE>

            If you  are  in  agreement  with  the  foregoing,  please  sign  the
duplicate original in the space provided below and return it to the Company.

                                   C&D TECHNOLOGIES, INC.

                                   By: /s/ Jeffrey A. Graves
                                      -----------------------
                                          Jeffrey A. Graves
                                   Title: President & Chief Executive Officer

Agreed as of the date
above written:
/s/ Ian J. Harvie
--------------------------------
Ian J. Harvie

                                      -12-

<PAGE>

                                    EXHIBIT A
                    TO EMPLOYMENT AGREEMENT (THE "AGREEMENT")
                         OF IAN J. HARVIE ("EXECUTIVE")

(Capitalized terms used herein and not otherwise defined have the meanings given
to them in the Agreement.)

      I.    Change of Control  Termination.  A "Change  of Control  Termination"
            means the  occurrence  of any of the  following  within  six  months
            before or within 24 months  after a Change of  Control  (as  defined
            below):   (a)  the  Executive's   employment  with  the  Company  is
            terminated by the Executive pursuant to (1) a Breach Termination, if
            the  termination  occurs  within  six  months  prior to a Change  of
            Control, or (2) a Termination for Good Reason (as defined below), if
            the  termination  occurs  after  a  Change  of  Control;  or (b) the
            Executive's employment with the Company is terminated by the Company
            for any reason other than death, Disability or for Cause.

      II.   Certain Other Definitions.

                  (a)   Change of  Control.  For  purposes of the  Agreement,  a
            "Change of Control" shall mean the first to occur of:

                        1.    The acquisition by any individual, entity or group
                        (within the  meaning of Section  13(d)(3) or 14(d)(2) of
                        the  Securities  Exchange  Act of 1934,  as amended (the
                        "Exchange  Act")) (a "Person") of  beneficial  ownership
                        (within the meaning of Rule 13d-3  promulgated under the
                        Exchange   Act)  of  30%  or  more  of  either  (A)  the
                        then-outstanding  shares of common  stock of the Company
                        (the  "Outstanding  Company  Common  Stock")  or (B) the
                        combined  voting  power of the  then-outstanding  voting
                        securities of the Company  entitled to vote generally in
                        the  election of  directors  (the  "Outstanding  Company
                        Voting  Securities");   provided,   however,  that,  for
                        purposes  of  this   Section   II(a)1,   the   following
                        acquisitions  shall not  constitute a Change of Control:
                        (i) any acquisition directly from the Company,  (ii) any
                        acquisition by the Company, (iii) any acquisition by any
                        employee  benefit plan (or related  trust)  sponsored or
                        maintained   by  the   Company  or  any   majority-owned
                        subsidiary of the Company,  or (iv) any  acquisition  by
                        any corporation  pursuant to a transaction that complies
                        with  Subsections  (A),  (B) and (C) of  Section  II(a)3
                        below.  Separation payments that constitute nonqualified
                        deferred  compensation set forth in this Exhibit A shall
                        be  paid  upon a  Change  in  Control  Termination  that
                        constitutes a Separation  from Service.  For purposes of
                        this Exhibit A, the default  definition  of  "Separation
                        from Service"  under the Final  Regulations  promulgated
                        under Section 409A shall be employed.

                        2.    Individuals who, as of the date hereof, constitute
                        the Board of Directors  (the  "Incumbent  Board") cease,
                        for any reason, to constitute at least a majority of the
                        Board  of  Directors;   provided,   however,   that  any
                        individual becoming a director subsequent to the date of
                        the Agreement whose election, or nomination for election
                        by the Company's stockholders, was approved by a vote of
                        at least

                                       A-1

<PAGE>

                        two-thirds  of  the  directors   then   comprising   the
                        Incumbent  Board  shall be  considered  as  though  such
                        individual  were a member of the  Incumbent  Board,  but
                        excluding,  for this purpose,  any such individual whose
                        initial  assumption  of office  occurs as a result of an
                        actual or  threatened  election  contest with respect to
                        the  election or removal of directors or other actual or
                        threatened  solicitation of proxies or consents by or on
                        behalf of a Person other than the Board of Directors.

                        3.    Consummation   of   a   reorganization,    merger,
                        statutory    share   exchange,    recapitalization    or
                        consolidation or similar corporate transaction involving
                        the Company or any of its subsidiaries,  a sale or other
                        disposition of all or substantially all of the assets of
                        the Company,  or the  acquisition  of assets or stock of
                        another entity by the Company or any of its subsidiaries
                        (each, a "Business  Combination"),  in each case unless,
                        following   such  Business   Combination,   (A)  all  or
                        substantially  all of the  individuals and entities that
                        were the beneficial  owners of the  Outstanding  Company
                        Common  Stock  and  the   Outstanding   Company   Voting
                        Securities    immediately   prior   to   such   Business
                        Combination  beneficially  own,  directly or indirectly,
                        more than 50% of the  then-outstanding  shares of common
                        stock   and   the   combined   voting   power   of   the
                        then-outstanding  voting  securities  entitled  to  vote
                        generally in the election of directors,  as the case may
                        be, of the  corporation  resulting  from  such  Business
                        Combination    (including,    without   limitation,    a
                        corporation that, as a result of such transaction,  owns
                        the Company or all or substantially all of the Company's
                        assets   either   directly   or  through   one  or  more
                        subsidiaries) in  substantially  the same proportions as
                        their  ownership  immediately  prior  to  such  Business
                        Combination of the Outstanding  Company Common Stock and
                        the Outstanding  Company Voting Securities,  as the case
                        may  be,  (B)  no  Person   (excluding  any  corporation
                        resulting from such Business Combination or any employee
                        benefit  plan (or related  trust) of the Company or such
                        corporation  resulting  from such Business  Combination)
                        beneficially owns,  directly or indirectly,  30% or more
                        of, respectively,  the then-outstanding shares of common
                        stock of the  corporation  resulting  from such Business
                        Combination   or  the  combined   voting  power  of  the
                        then-outstanding  voting securities of such corporation,
                        except to the extent that such  ownership  existed prior
                        to the Business Combination, and (C) at least a majority
                        of  the  members  of  the  board  of  directors  of  the
                        corporation  resulting  from such  Business  Combination
                        were members of the  Incumbent  Board at the time of the
                        execution  of the initial  agreement or of the action of
                        the  Board of  Directors  providing  for  such  Business
                        Combination; or

                        4.    Approval by the  stockholders  of the Company of a
                        complete liquidation or dissolution of the Company.

                  (b)   Termination  for  Good  Reason.  For  purposes  of  this
            Exhibit A, a  "Termination  for Good Reason" means a termination  of
            the Executive's  employment by the Executive by written  Termination
            Notice given to the Company  within 90 days after the  occurrence of
            the Good Reason event.  A Termination  Notice for a Termination  for
            Good Reason shall  indicate the specific  provision in Section II(c)
            relied  upon,  shall set forth in  reasonable  detail  the facts and
            circumstances  claimed to provide a basis for  Termination  for Good
            Reason,  and shall provide the Company a minimum of 30 days in which
            to

                                       A-2

<PAGE>

            remedy such facts or circumstances.  The failure by the Executive to
            set forth in such  Termination  Notice  any  facts or  circumstances
            which  contribute  to the showing of Good Reason shall not waive any
            right  of  Executive   hereunder  or  preclude  the  Executive  from
            asserting  such  fact  or   circumstance  in  enforcing  his  rights
            hereunder.  The Termination Notice for a Termination for Good Reason
            shall  provide for a date of  termination  not less than 30 nor more
            than 60 days after the date such Termination Notice is given.

                  (c)   Good  Reason.  For  purposes  of this  Exhibit  A, "Good
            Reason" shall mean the occurrence,  without the Executive's  express
            written consent, of any of the following circumstances,  unless such
            circumstances  are fully  corrected prior to the date of termination
            specified  in the  Termination  Notice  for a  Termination  for Good
            Reason as  contemplated  in  Section  II(b)  above:  (i) a  material
            diminution    in   the    Executive's    authority,    duties,    or
            responsibilities;  (ii) a  material  diminution  in  the  authority,
            duties, or  responsibilities of the supervisor to whom the Executive
            is required to report,  including, if applicable. a requirement that
            the Executive  report to a corporate  officer or employee instead of
            reporting  directly  to the  board of  directors;  (iii) a  material
            diminution in the budget over which the Executive retains authority;
            (iv) a material  relocation  of the  Company's  principal  executive
            offices (or such other office to which the  Executive is required to
            report); (v) a material diminution in the Executive's Base Salary or
            (vi) any other action or inaction that constitutes a material breach
            by the Company of the Agreement.

      III.  Payments and Benefits.

            Separation pay upon a Change in Control Termination shall be paid in
            accordance  with this  Section III  provided  that such  termination
            constitutes  a  "separation  from  service" as defined under Section
            409A ("Separation from Service"). If a Change of Control Termination
            does not constitute a Separation from Service,  separation pay shall
            be paid at such later time that a Separation from Service occurs.

            Upon a Separation  from Service  occurring upon or after a Change of
            Control  Termination,  the  Executive  shall be entitled to receive,
            subject to the  execution of the Release,  the payments and benefits
            set  forth  below  in  this  Section  III  in  consideration  of the
            Executive's  agreements  under  the  Agreement,  including  but  not
            limited to the Executive's agreement not to compete with the Company
            for a period  of one  year  after a Change  of  Control  Termination
            pursuant to Section 5(a) of the Agreement;  provided,  however, that
            any payment made or benefit provided under this Section III shall be
            reduced by any amount  paid or payable to the  Executive  and/or the
            Executive's  family  with  respect  to the same type of  payment  or
            benefit  under any other  plan  maintained  by the  Company to avoid
            duplication of payments or benefits,  including without  limitation,
            any amounts that were paid upon  termination of employment  prior to
            the Change of Control:

                  (a) The Company shall pay to the Executive within fifteen days
            following the Change of Control Termination, a lump sum amount equal
            to (i) two  times  the  sum of (x)  the  Base  Salary  as in  effect
            immediately  before  the  date  of  termination   (disregarding  any
            reduction thereof in violation of Section 2(a) of the Agreement) and
            (y) the Annual

                                       A-3

<PAGE>

            Bonus  Amount,  plus (ii)  $10,000.  The "Annual Bonus Amount" shall
            mean the  greater of (i) the average of the Annual  Bonuses  paid to
            the  Executive  with  respect  to each of the  three  most  recently
            completed fiscal years of the Company before the date of termination
            for  which a bonus has been  paid or (ii) the  Executive's  Targeted
            Bonus Amount. The Executive's "Targeted Bonus Amount" shall mean (x)
            the higher of 35% and the  percentage  of the  Executive's  targeted
            bonus in effect  before  the date of  termination  for  purposes  of
            determining the  Executive's  Annual Bonus for the year in which the
            termination  occurs,  times (y) the amount of the  Executive's  Base
            Salary  as  in  effect  for  the  year  in  which  the   Executive's
            termination occurs  (disregarding any reduction thereof in violation
            of Section 2(a) of the Agreement).

                  (b) The Company  shall,  until the earlier of 18 months  after
            the date of the Change of Control Termination and such time that the
            Executive  obtains  alternative  coverage,   pay  or  reimburse  the
            Executive for the Company's and the Executive's  portion of the cost
            to provide the Executive and the Executive's eligible  beneficiaries
            (if  applicable)  health and medical  coverage  under the  Company's
            health and medical plans  provided that the Executive  timely elects
            COBRA coverage upon termination of employment.  In addition, for two
            years  after the date of the Change of Control,  the  Company  shall
            provide  the  Executive  with  life  insurance  coverage  under  the
            Company's life insurance policy.  Notwithstanding the foregoing,  to
            the  extent  the  Company's   plans  do  not  permit  the  continued
            participation  by the  Executive  and/or  the  Executive's  eligible
            beneficiaries or such participation would have an adverse tax impact
            on such  plans or on the  other  participants  in such  plans or the
            continued  participation is otherwise  prohibited by applicable law,
            or  if  such  continuance  would  constitute  nonqualified  deferred
            compensation that does not comply with Section 409A, the Company may
            instead  provide  materially  equivalent  benefits to the  Executive
            and/or the Executive's  eligible  beneficiaries  outside such plans.
            For purposes of this  Agreement,  "materially  equivalent  benefits"
            means the  aggregate  premiums  that the Company  would have paid to
            maintain the Executive's coverage under the health, medical and life
            insurance  plans.  The  Executive  agrees to complete such forms and
            take such physical  examinations  as may be reasonably  requested by
            the Company in connection with life insurance coverage.

                  (c) All outstanding  Options and restricted  stock awards that
            have been  granted to the  Executive  by the Company at any time but
            have not yet expired or vested and upon which vesting depends solely
            upon  the  Executive's  remaining  employed  by  the  Company  for a
            specified  period  of  time,   shall   immediately  vest  or  become
            nonforfeitable,  as the case may be, and the Company  shall,  in the
            case of Options  that are not  exercised  or cashed out,  extend the
            period  during  which such  Options may be exercised to the greatest
            extent  permitted  by the  applicable  plan,  Section  409A or other
            applicable  law. The Company  agrees to take all steps  necessary to
            implement the foregoing sentence.

                  (d) The Company,  at its expense,  shall provide the Executive
            with  outplacement  services  at a level  appropriate  for the  most
            senior level of executive  employees through an outplacement firm of
            the Executive's choice for a period of up to one year after the date
            of the Change of Control Termination.

                                       A-4

<PAGE>

      IV.   Certain Additional Payments.

                  (a)  Anything  in the  Agreement  and  this  Exhibit  A to the
            contrary  notwithstanding,  in the event it shall be determined that
            any  Payment  or any other  amounts  or  benefits  delivered  to the
            Executive under the Agreement or any other agreement,  plan,  policy
            or program, including,  without limitation,  equity awards, would be
            subject to the Excise Tax, then the  Executive  shall be entitled to
            receive an additional payment (the "Gross-Up  Payment") in an amount
            such  that,  after  payment by the  Executive  of all taxes (and 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 Excise Tax imposed
            upon the  Gross-Up  Payment and after the payment of all  additional
            taxes and interest  imposed under Code Section  409A(a)(1)(B) on the
            Gross-Up  Payment and any  separation  payment made to the Executive
            hereunder,  the Executive  retains an amount of the Gross-Up Payment
            equal to the Excise Tax imposed upon the  Payments.  Notwithstanding
            the  foregoing  provisions  of this  Section  IV(a),  if it shall be
            determined  that the Executive is entitled to the Gross-Up  Payment,
            but that the Parachute Value of all Payments does not exceed 110% of
            the Safe Harbor  Amount,  then no Gross-Up  Payment shall be made to
            the Executive and the amounts  payable under this Agreement shall be
            reduced  so  that  the  Parachute  Value  of  all  Payments,  in the
            aggregate,  equals the Safe  Harbor  Amount.  The  reduction  of the
            amounts  payable  hereunder,  if applicable,  shall be made by first
            reducing the  payments  under  Section  III(a) of this Exhibit A and
            shall  be made in such a  manner  as to  maximize  the  Value of all
            Payments  actually made to the  Executive.  For purposes of reducing
            the Payments to the Safe Harbor Amount,  only amounts  payable under
            this  Agreement  (and no other  Payments)  shall be reduced.  If the
            reduction  of the amounts  payable  under this  Agreement  would not
            result in a reduction of the Parachute  Value of all Payments to the
            Safe Harbor Amount,  no amount payable under the Agreement  shall be
            reduced  pursuant to this Section IV(a).  The company's  obligations
            under this Section IV shall not be conditioned  upon the Executive's
            termination of employment and they shall survive the  termination of
            the  Executive's  employment.  In furtherance of the foregoing,  the
            provisions of this IV(a) shall supersede any provision of any equity
            award or  agreement  that limits  payment of such award or agreement
            due to Section 280G or 4999 of the Code,  and the Company shall take
            any necessary  action to amend such every such award or agreement to
            comply with this provision.

                  (b)  Anything  in the  Agreement  and  this  Exhibit  A to the
            contrary  notwithstanding,  in the event it shall be determined that
            any  amounts  or  benefits  delivered  to the  Executive  under  the
            Agreement or any other agreement,  plan,  policy or program shall be
            deemed to be nonqualified deferred compensation that does not comply
            with  Section  409A  ("Noncompliant  409A  Payment"),  and  that  is
            therefore subject to the taxes and penalties under Section 409A (the
            "409A  Taxes"),  then the Executive  shall be entitled to receive an
            additional  payment (the "409A Gross-Up  Payment") in an amount such
            that,  after payment by the Executive of all taxes (and 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 taxes  imposed  upon the 409A  Gross-Up
            Payment,  the Executive  shall retain an amount of the 409A Gross-Up
            Payment equal to the 409A Taxes imposed upon the Payments.

                                       A-5

<PAGE>

                  (c)  Subject to the provisions of Section IV(d), all
            determinations required to be made under this Section IV, including
            whether and when a Gross-Up Payment or 409A Gross-Up Payment is
            required, the amount of such Gross-Up Payment or 409A Gross-Up
            Payment, and the assumptions to be utilized in arriving at such
            determination, shall be made by any nationally recognized certified
            public accounting firm as may be designated by the Executive (the
            "Accounting Firm"). The Accounting Firm shall provide detailed
            supporting calculations both to the Company and the Executive within
            15 business days of the receipt of notice from the Executive that
            there has been a Payment or a payment that the Executive reasonably
            believes to be a Noncompliant 409A Payment, or such earlier time as
            is requested by the Company. In the event that the Accounting Firm
            is serving as accountant or auditor for the individual, entity or
            group effecting the Change of Control, the Executive may 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 the
            Company. Any Gross-Up Payment, or 409A Gross-Up Payment, as
            determined pursuant to this Section IV, shall be paid by the Company
            to the Executive within five business days of the receipt of the
            Accounting Firm's determination, which determination shall be made
            no later than the end of the second month following the later of (1)
            the calendar year in which the Executive's employment with the
            Company terminates and (2) the taxable year of the Company in which
            the Executive's employment with the Company terminates. Payment of
            the Gross-Up Payment or the 409A Gross-Up Payment shall be made as
            soon as practicable after such determination has been made, but in
            no event shall payment be made later than the end of the Executive's
            taxable year next following the Executive's taxable year in which
            the Executive shall have remitted the related taxes.

                  Any determination by the Accounting Firm shall be binding upon
            the Company and the Executive. As a result of the uncertainty in the
            application of Sections 4999 and 409A of the Code at the time of the
            initial  determination  by  the  Accounting  Firm  hereunder,  it is
            possible that Gross-Up Payments and 409A Gross-Up Payments that will
            not have  been  made by the  Company  should  have  been  made  (the
            "Underpayment"),  consistent  with the  calculations  required to be
            made  hereunder.  In the event the  Company  exhausts  its  remedies
            pursuant to Section IV(c) and the  Executive  thereafter is required
            to make a payment of any Excise Tax or 409A  Taxes,  the  Accounting
            Firm  shall  determine  the  amount  of the  Underpayment  that  has
            occurred  and any such  Underpayment  shall be promptly  paid by the
            Company to or for the benefit of the Executive.

                  (d) The  Executive  shall notify the Company in writing of any
            claim by the Internal  Revenue  Service that, if  successful,  would
            require the payment by the  Company of the  Gross-Up  Payment or the
            409A Gross-Up Payment.  Such notification  shall be given as soon as
            practicable, but no later than ten business days after the Executive
            is informed in writing of such claim.  The  Executive  shall apprise
            the  Company  of the nature of such claim and the date on which such
            claim is  requested  to be paid.  The  Executive  shall not pay such
            claim prior to the  expiration  of the 30-day  period  following the
            date on which the  Executive  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

                                       A-6

<PAGE>

            notifies the  Executive in writing  prior to the  expiration of such
            period that the Company desires to contest such claim, the Executive
            shall:

                        (1)  give  the   Company  any   information   reasonably
                        requested by the Company relating to such claim,

                        (2)   take such  action in  connection  with  contesting
                        such claim as the Company  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 the
                        Company,

                        (3)   cooperate  with the Company in good faith in order
                        to effectively contest such claim, and

                        (4)   permit   the   Company  to   participate   in  any
                        proceedings relating to such claim;

                  provided,  however,  that  the  Company  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 the Executive  harmless,  on an after-tax  basis,
            for any Excise Tax or income tax (including  interest and penalties)
            imposed as a result of such  representation and payment of costs and
            expenses.  Without  limitation on the  foregoing  provisions of this
            Section IV(c),  the Company shall control all  proceedings  taken in
            connection  with such  contest,  and,  at its sole  discretion,  may
            pursue or forgo  any and all  administrative  appeals,  proceedings,
            hearings and  conferences  with the applicable  taxing  authority in
            respect of such claim and may, at its sole discretion, either direct
            the Executive to pay the tax claimed and sue for a refund or contest
            the claim in any  permissible  manner,  and the 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 the Company shall determine; provided, however,
            that if the Company  directs the Executive to pay such claim and sue
            for a refund,  the Company  shall advance the amount of such payment
            to the Executive, on an interest-free basis, and shall indemnify and
            hold the Executive harmless,  on an after-tax basis, from any Excise
            Tax or income tax  (including  interest or  penalties) or 409A Taxes
            imposed  with respect to such advance or with respect to any imputed
            income in connection with such advance; and provided,  further, that
            any extension of the statute of  limitations  relating to payment of
            taxes for the taxable  year of the  Executive  with respect to which
            such contested amount is claimed to be due is limited solely to such
            contested amount. Furthermore,  the Company's control of the contest
            shall be  limited  to issues  with  respect  to which  the  Gross-Up
            Payment or 409A Gross-Up Payment would be payable hereunder, and the
            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.

                  (e) If,  after the  receipt  by the  Executive  of a  Gross-Up
            Payment  or 409A  Gross-Up  Payment  or an  amount  advanced  by the
            Company pursuant to Section IV(d), the Executive becomes entitled to
            receive  any  refund  with  respect  to the Excise Tax to which such
            Gross-Up  Payment  relates  or  with  respect  to  such  claim,  the
            Executive shall

                                       A-7

<PAGE>

            (subject to the Company's complying with the requirements of Section
            IV(c), if applicable) promptly pay to the Company the amount of such
            refund  (together  with any interest paid or credited  thereon after
            taxes applicable thereto). If, after the receipt by the Executive of
            an amount  advanced by the  Company  pursuant  to Section  IV(c),  a
            determination  is made that the  Executive  shall not be entitled to
            any  refund  with  respect to such  claim and the  Company  does not
            notify the Executive in writing of its intent to contest such denial
            of  refund   prior  to  the   expiration   of  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.

                  (f)  Notwithstanding  any other  provision of this Section IV,
            the Company  may, in its sole  discretion,  withhold and pay over to
            the  Internal  Revenue  Service  or  any  other  applicable   taxing
            authority,  for the benefit of the Executive,  all or any portion of
            any Gross-Up  Payment or 409A  Gross-Up  Payment,  and the Executive
            hereby consents to such withholding.

                  (g) Definitions.  The following terms shall have the following
            meanings for purposes of this Section IV.

                        (i) "Code" shall mean the Internal Revenue Code of 1986,
            as amended, or any successor thereto.

                        (ii)  "Excise  Tax" shall mean the excise tax imposed by
            Section  4999 of the Code,  together  with any interest or penalties
            imposed with respect to such excise tax.

                        (iii)  "Parachute  Value"  of a Payment  shall  mean the
            present  value as of the date of the change of control for  purposes
            of  Section  280G of the Code of the  portion of such  Payment  that
            constitutes  a "parachute  payment"  under  Section  280G(b)(2),  as
            determined  by the  Accounting  Firm  for  purposes  of  determining
            whether  and to what  extent  the  Excise  Tax  will  apply  to such
            Payment.

                        (iv) "Payment" shall mean any payment or distribution in
            the nature of compensation (within the meaning of Section 280G(b)(2)
            of the Code) to or for the benefit of the Executive, whether paid or
            payable pursuant to this Agreement or otherwise.

                        (v)  "Safe   Harbor   Amount"   means   2.99  times  the
            Executive's "base amount," within the meaning of Section  280G(b)(3)
            of the Code.

                        (vi)  "Value"  of a  Payment  shall  mean  the  economic
            present  value of a Payment  as of the date of the change of control
            for  purposes  of Section  280G of the Code,  as  determined  by the
            Accounting   Firm  using  the  discount  rate  required  by  Section
            280G(d)(4) of the Code.

                  (h) The Company's  obligations under this Section IV shall not
            be conditioned upon the Executive's  termination of employment,  and
            they shall survive the termination of the Executive's employment and
            the Term with respect to any Payments or other payments

                                       A-8

<PAGE>

            that  are  determined  by  the  Accounting  Firm  to be  either  (i)
            contingent  on a "change of control"  (as defined in Section 280G of
            the Code) of the  Company  that  occurs  during  the  Term,  or (ii)
            nonqualified deferred compensation that does not comply with Section
            409A.

                  (i) Any Gross-Up  Payment or 409A  Gross-Up  Payment  shall be
            made no later than the end of the Executive's taxable year following
            the taxable year in which the Executive remits the related taxes.

      V.    Legal Fees. If, following a Change of Control,  the Company fails to
            perform any of its  obligations  under this Agreement or the Company
            or any other person  asserts the invalidity of any provision of this
            Agreement  and  the  Executive  incurs  any  costs  in  successfully
            enforcing  or defending  any of the  provisions  of this  Agreement,
            including legal fees and expenses and court costs, the Company shall
            reimburse the Executive for all such costs  incurred by him,  unless
            the trier of fact in such dispute  determines that the Executive has
            not  been at  least  partially  successful  in such  enforcement  or
            defense.  Any  reimbursement  under this  Section V shall be made no
            later than the end of calendar  year  following the calendar year in
            which such costs are incurred by the Executive.

                                       A-9

<PAGE>

                                    EXHIBIT B

                                     RELEASE

            This Release is made this _____ day of _______________,  ____ by and
between C&D Technologies, Inc. ("Employer") and Ian J. Harvie ("Employee").

                                    Recitals:

            WHEREAS,  the parties are parties to an  Employment  Agreement  (the
"Employment  Agreement") dated December 20, 2007, pursuant to which Employee was
employed by Employer; and

            WHEREAS,  Employee's  employment  and the Term,  as  defined  in the
Employment Agreement, have terminated; and

            WHEREAS, the execution and delivery of this Release by Employee is a
condition to the Employer's  obligations to pay certain compensation and provide
certain benefits to Employee under the Employment Agreement;

            NOW THEREFORE, the parties hereto, intending to be legally bound, in
consideration  of the mutual  promises and  undertakings  set forth  herein,  do
hereby agree as follows:

            1.    As of _____________________,  ____, Employee's employment with
Employer   shall   terminate,   and   Employee   shall  have  no   further   job
responsibilities to perform for Employer; provided, however, that Employee shall
cooperate  with Employer in  transitioning  Employee's job  responsibilities  as
Employer shall reasonably  request,  provided that Employee shall be entitled to
receive reasonable compensation for any services rendered prior to such date and
shall  not be  obligated  to take  any  action  that  would  interfere  with any
subsequent  employment of Employee or otherwise  result in economic  hardship to
Employee.

            2.    Employer  shall pay and  provide to  Employee  the amounts and
benefits  contemplated  pursuant to Section 9 [and Exhibit A] of the  Employment
Agreement, less applicable deductions; provided however, the first payment shall
not be due and  payable  until ten days  after the  execution  by  Employee  and
delivery to Employer of this Release..

            3.    For and in  consideration  of the monies and benefits  paid to
Employee by Employer,  as more fully described in Section 2 above, and for other
good and valuable  consideration,  Employee hereby waives,  releases and forever
discharges  Employer,  its assigns,  predecessors,  successors,  and  affiliated
entities,  and  its  current  or  former  stockholders,   officers,   directors,
administrators,   agents,   servants   and   employees,   individually   and  as
representatives of the corporate entity (hereinafter collectively referred to as
"Releasees"), from any and all claims, suits, debts, dues, accounts, reckonings,
bonds,  bills,  specialties,   covenants,   contracts,  bonuses,  controversies,
agreements,  promises,  charges,  complaints,  damages, sums of money, interest,
attorney's fees and costs, or causes of action of any kind or nature  whatsoever
whether in law or equity,  including, but not limited to, all claims arising out
of his employment or termination of employment with Employer, such as all claims
for wrongful discharge, breach of contract, either

                                       B-1

<PAGE>

express or implied,  interference  with  contract,  emotional  distress,  fraud,
misrepresentation,  defamation,  claims  arising  under the Civil Rights Acts of
1964 and  1991,  as  amended,  the  Americans  With  Disabilities  Act,  the Age
Discrimination  in Employment Act (ADEA),  the National Labor Relations Act, the
Fair Labor  Standards Act, the Employee  Retirement  Income Security Act of 1974
(ERISA),  as amended,  the Family and Medical Leave Act, the Pennsylvania  Human
Relations Act, the Pennsylvania  Wage Payment & Collection Law, the Pennsylvania
Minimum Wage Act of 1968, the Pennsylvania  Equal Pay Law, and any and all other
claims   arising  under  federal,   state  or  local  law,   rule,   regulation,
constitution, ordinance or public policy whether known or unknown, arising up to
and including the date of execution of this Release; provided, however, that the
parties do not release  each other from any claim of breach of the terms of this
Release.  This  release of rights does not extend to claims that may arise after
the date of this Release, including without limitation, for payments or benefits
described in Section 2 of this  Release,  nor to claims under  employee  benefit
plans that are qualified under Section 401(a) of the Internal  Revenue Code, nor
to any rights of  indemnification  by the Company or  advancement of expenses to
which the  Employee is  otherwise  entitled,  nor to any equity  awards that are
outstanding on the date of  termination.  Employee agrees that Employee will not
initiate  any charge or  complaint  or  institute  any claim or lawsuit  against
Releasees or any of them based on any fact or  circumstance  occurring up to and
including  the date of the  execution by Employee of this  Release  based upon a
claim that is released hereunder.

            4.    Employee agrees that the payments made and other consideration
received  pursuant to this  Release are not to be  construed  as an admission of
legal  liability  by Releasees or any of them and that no person or entity shall
utilize this Release or the  consideration  received pursuant to this Release as
evidence of any admission of liability since Releasees expressly deny liability.

            5.    Employee affirms that the only  consideration  for the signing
of this Release are the terms stated herein and in the Employment  Agreement and
that no other  promise or agreement of any kind has been made to Employee by any
person or entity whatsoever to cause Employee to sign this Release.

            6.    Employee and Employer affirm that the Employment Agreement and
this Release set forth the entire agreement  between the parties with respect to
the subject matter contained  herein and supersede all prior or  contemporaneous
agreements  or  understandings  between the parties  with respect to the subject
matter contained herein. Further, there are no representations,  arrangements or
understandings, either oral or written, between the parties, which are not fully
expressed herein.  Finally,  no alteration or other modification of this Release
shall be effective unless made in writing and signed by both parties.

            7.    Employee acknowledges that Employee has been given a period of
at least 21 days within which to consider this Release.

            8. Following the execution of this Release, Employee has a period of
seven days from the date of execution to revoke this  Release,  and this Release
shall not  become  effective  or  enforceable  until the  revocation  period has
expired.

                                       B-2

<PAGE>

            9.    Employee  certifies that Employee has returned to Employer all
keys,  identification  cards, credit cards, computer and telephone equipment and
other property or information of Employer in Employee's possession,  custody, or
control including, but not limited to, any information contained in any computer
files  maintained  by  Employee  during  Employee's  employment  with  Employer.
Employee  certifies  that  Employee has not kept the  originals or copies of any
documents,  files,  or other  property of Employer  which  Employee  obtained or
received during Employee's employment with Employer.

            10.   Employee  acknowledges  and agrees that the  execution of this
Release does not supercede any of the  provisions  of the  Employment  Agreement
which  otherwise  survive the  termination  of  Employee's  employment  with the
Employer, including without limitation, Section 5, 6, 7 and 19 thereof.

            11.   Employee   acknowledges  that  Employer  advised  Employee  to
consult with an attorney prior to executing this Release.

            12.   Employee   affirms  that  Employee  has  carefully  read  this
Release,  that  Employee  fully  understands  the  meaning  and  intent  of this
document,  that Employee has signed this Release voluntarily and knowingly,  and
that Employee intends to be bound by the promises  contained in this Release for
the aforesaid consideration.

            IN WITNESS WHEREOF,  Employee and the authorized  representative  of
Employer have executed this Release on the dates indicated below:

                                              C&D TECHNOLOGIES, INC.

Dated: ____________________________________   By: ______________________________

                                              Title: ___________________________

Dated: ____________________________________   __________________________________
                                              Ian J. Harvie

                                       B-3

<PAGE>

                                   ENDORSEMENT

            I, Ian J.  Harvie,  hereby  acknowledge  that I was given 21 days to
consider the foregoing  Release and voluntarily  chose to sign the Release prior
to the expiration of the 21-day period.

            I  declare   under   penalty  of  perjury  under  the  laws  of  the
Commonwealth of Pennsylvania that the foregoing is true and correct.

            EXECUTED   this  ________  day  of   __________________,   ____,  at
____________________________, Pennsylvania.

                                              ___________________
                                              Ian J. Harvie

                                       B-4