EXHIBIT 10.2

AFFIRMATION AND AMENDMENT OF GUARANTY

                    This AFFIRMATION AND AMENDMENT OF GUARANTY is entered into
as of September 30, 2004, by and between SAFEGUARD SCIENTIFICS, INC.
(“Guarantor”) and COMERICA BANK, successor by merger to Comerica Bank –
California (“Bank”).

RECITALS

                    Bank, SAFEGUARD DELAWARE, INC. and SAFEGUARD SCIENTIFICS
(DELAWARE), INC. (collectively, the “Borrowers”) are parties to that certain
Loan Agreement dated as of May 10, 2002, as amended by a First Amendment to Loan
Agreement dated as of May 9, 2003, a Second Amendment to Loan Agreement dated as
of February 12, 2004, and a Third Amendment to Loan Agreement dated as of May 8,
2004 (as so amended, the “Loan Agreement”). Guarantor executed for the benefit
of Bank an Unconditional Guaranty (the “Guaranty”), guarantying amounts owing by
Borrowers to Bank. Borrowers and Bank propose to enter into a Fourth Amendment
to Loan Agreement of even date herewith (the “Amendment”), which amends the Loan
Agreement by, among other things, extending additional credit and increasing its
maturity. Bank has agreed to enter into the Amendment provided, among other
things, that Guarantor consents to the Amendment and agrees that the Guaranty
will remain effective. In addition, the parties desire to amend the Guaranty in
accordance with the terms of this Amendment and Affirmation.

AGREEMENT

                    NOW, THEREFORE, the parties agrees as follows:

                    1.           The last sentence of the introductory paragraph
of the Guaranty is hereby amended to read as follows: “The liability of
Guarantor hereunder shall not exceed a principal amount of $55,000,000 plus
interest and the fees and expenses incurred by Bank in enforcing the Loan
Documents.”

                    2.           Guarantor consents to the execution, delivery
and performance by Borrowers of the Amendment and the documents and instruments
executed in connection therewith. The Guaranty is and shall remain in full force
and effect with respect to each Borrower’s Obligations (as defined in the Loan
Agreement), as modified by the Amendment. Guarantor confirms that, as of the
date hereof, Guarantor has no defenses against its obligations under the
Guaranty.

                    3.           The Guaranty, 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. Except as expressly set forth
herein, the execution, delivery, and performance of this Amendment and
Affirmation and shall not operate as a waiver of, or as an amendment of, any
right, power, or remedy of Bank under the Guaranty, as in effect prior to the
date hereof. Guarantor ratifies and reaffirms the continuing effectiveness of
all instruments, documents and agreements entered into in connection with the
Guaranty.

                    4.           Guarantor represents and warrants that the
Representations and Warranties contained in the Guaranty are true and correct as
of the date of this Amendment and Affirmation (other than those made as of a
specific date, as to which such representations and warranties are true and
correct as of such date). Unless otherwise defined, all capitalized terms in
this Amendment and Affirmation shall be as defined in the Guaranty. This
Amendment and Affirmation 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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                    IN WITNESS WHEREOF, the undersigned have executed this
Affirmation and Amendment of Guaranty as of the first date above written.

              SAFEGUARD SCIENTIFICS, INC.
 
       
 
       

  By:   /s/ Steve Grenfell

     

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  Title:   Vice President

     

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            COMERICA BANK
 
       
 
       

  By:   /s/ Talene Salmastlian

     

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  Title:   Corporate Banking Officer

     

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