SAFEGUARD SCIENTIFICS INC ET AL
FIRST AMENDMENT TO LOAN AGREEMENT
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<TYPE>EX-10.1
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<DESCRIPTION>FIRST AMENDMENT TO LOAN AGREEMENT
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<P align="right"><FONT size="2">Exhibit&nbsp;10.1</FONT>

<P align="center"><FONT size="2">FIRST AMENDMENT<BR>
TO<BR>
LOAN AGREEMENT
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This First Amendment to Loan Agreement is entered into as of May&nbsp;9, 2003
(the &#147;Amendment&#148;), by and among COMERICA BANK &#150; CALIFORNIA (&#147;Bank&#148;) and
SAFEGUARD DELAWARE, INC. (&#147;Safeguard Delaware&#148;) and SAFEGUARD SCIENTIFICS
(DELAWARE), INC. (&#147;Safeguard Scientifics&#148;; Safeguard Scientifics and Safeguard
Delaware are sometimes referred to, individually, as a &#147;Borrower&#148; and
collectively, the &#147;Borrowers&#148;).
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<P align="center"><FONT size="2">RECITALS
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowers and Bank are parties to that certain Loan Agreement dated as of
May&nbsp;10, 2002, as amended (the &#147;Agreement&#148;). The parties desire to amend the
Agreement in accordance with the terms of this Amendment.
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the parties agree as follows:
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following defined terms in Section&nbsp;1.1 of the Agreement are hereby
amended in their entirety to read as follows:
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Revolving Maturity Date&#148; means May&nbsp;8, 2004.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.1(b)(i) of the Agreement is hereby amended in its entirety to
read as follows:
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions of this Agreement, at
any time prior to the Revolving Maturity Date, Bank agrees to
issue or cause to be issued letters of credit for the account of
Borrowers (each, a &#147;Letter of Credit&#148; and collectively, the
&#147;Letters of Credit&#148;) in an aggregate outstanding face amount not
to exceed the Revolving Line minus the aggregate amount of the
outstanding Advances at any time, provided that the aggregate face
amount of all outstanding Letters of Credit shall not exceed Ten
Million Dollars ($10,000,000). All Letters of Credit shall be,
in form and substance, acceptable to Bank in its sole discretion
and shall be subject to the terms and conditions of Bank&#146;s form of
standard application and letter of credit agreement (the
&#147;Application&#148;), which Borrower hereby agrees to execute, including
Bank&#146;s standard fee equal to 0.5% per annum of the face amount of
each Letter of Credit. On any drawn but unreimbursed Letter of
Credit, the unreimbursed amount shall be deemed an Advance under
Section&nbsp;2.1(a). Prior to the Revolving Maturity Date, Borrowers
shall secure in cash all obligations under any outstanding Letters
of Credit on terms acceptable to Bank.</FONT></TD>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.4 of the Agreement is hereby amended to read as follows:
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment Charges. Impairment charges relating to
Private Partner Companies on a cumulative basis during the term of
this Agreement, excluding mandatory FASB 142 charges, shall not
exceed $50,000,000 between May&nbsp;9, 2003 and May&nbsp;8, 2004.</FONT></TD>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise defined, all initially capitalized terms in this
Amendment shall be as defined in the Agreement. The Agreement, as amended
hereby, shall be and remain in full force and effect in accordance with its
respective terms and hereby is ratified and confirmed in all respects. Each
Borrower ratifies and reaffirms the continuing effectiveness of the Agreement
and all instruments, documents and agreements entered into in connection with
the Agreement.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Borrower represents and warrants that the Representations and
Warranties contained in the Agreement are true and correct as of the date of
this Amendment, and that no Event of Default has occurred and is continuing.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one instrument.
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<P align="center"><FONT size="2">1</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a condition to the effectiveness of this Amendment, Bank shall have
received, in form and substance satisfactory to Bank, the following:
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;this Amendment, duly executed by Borrowers;</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;corporate resolutions to borrow, duly executed by each Borrower;</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;an Affirmation and Amendment of Guaranty, duly executed by Safeguard
Scientifics, Inc.;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;corporate resolutions to guaranty, duly executed by Safeguard
Scientifics, Inc.;</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;an amount equal to all Bank Expenses incurred through the date of this
Amendment; and</FONT></TD>
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;such other documents, and completion of such other matters, as Bank
may reasonably deem necessary or appropriate.</FONT></TD>
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<P align="center"><FONT size="2">&#091;<I>REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK&#093;</I>
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<P align="center"><FONT size="2">2</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the
first date above written.
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SAFEGUARD DELAWARE, INC.</FONT></TD>
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    <TD valign="top"><FONT size="2">By:</FONT></TD>
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<I>/s/ Christopher J. Davis</I>
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Title: <I>Managing Director and CFO</I></FONT></TD>
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SAFEGUARD SCIENTIFICS</FONT></TD>
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(DELAWARE), INC.</FONT></TD>
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    <TD valign="top"><FONT size="2">By:</FONT></TD>
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<I>/s/ Christopher J. Davis</I>
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Title: <I>Managing Director and CFO</I></FONT></TD>
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COMERICA BANK-CALIFORNIA</FONT></TD>
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    <TD valign="top"><FONT size="2">By<I>:</I></FONT></TD>
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<I>/s/ Stacy Arrigo</I><BR>
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Title: <I>Vice President</I></FONT></TD>
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