EXHIBIT 10.1

FOURTH AMENDMENT
TO
LOAN AGREEMENT

                    This Fourth Amendment to Loan Agreement is entered into as
of September 30, 2004 (the “Amendment”), by and among COMERICA BANK, successor
by merger to Comerica Bank – California (“Bank”), SAFEGUARD DELAWARE, INC.
(“Safeguard Delaware”) and SAFEGUARD SCIENTIFICS (DELAWARE), INC. (“Safeguard
Scientifics”; Safeguard Scientifics and Safeguard Delaware are sometimes
referred to, individually, as a “Borrower” and collectively, the “Borrowers”).

RECITALS

                    Borrowers and Bank are parties to that certain Loan
Agreement dated as of May 10, 2002, as amended, including without limitation 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 “Agreement”). The parties
desire to further amend the Agreement in accordance with the terms of this
Amendment.

                    NOW, THEREFORE, the parties agree as follows:

                    1.           The following definitions are hereby added to
or amended in Section 1.1 of the Agreement to read as follows:

                              “Credit Extension” means each Advance, Letter of
Credit, Private Partner Guaranty, Facility 2 Letter of Credit, or any other
extension of credit by Bank for the benefit of Borrowers hereunder.

                              “Facility 2 Letter of Credit Line” means aggregate
Credit Extensions of up to Ten Million Dollars ($10,000,000).

                              “Facility 2 Letter of Credit Maturity Date” means
May 9, 2005.

                              “Revolving Line” means aggregate Credit Extensions
of up to Forty Five Million Dollars ($45,000,000).

                              “Revolving Maturity Date” means May 9, 2005.

                    2.           A new Section 2.1(c) is hereby added to the
Agreement to read as follows:

                              (c)           Facility 2 Letters of Credit.

                                              (i)           Subject to the terms
and conditions of this Agreement, at any time prior to the Facility 2 Letter of
Credit Maturity Date, Bank agrees to issue or cause to be issued letters of
credit for the account of a Borrower (each, a “Facility 2 Letter of Credit” and
collectively, the “Facility 2 Letters of Credit”) in an aggregate outstanding
face amount (including any drawn but unreimbursed amounts) not to exceed the
Facility 2 Letter of Credit Line. All Facility 2 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’s form of standard application and
letter of credit agreement, as amended (the “Application”), which Borrowers
hereby agree to

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execute, including Bank’s standard fee equal to 0.50% per annum of the face
amount of each Facility 2 Letter of Credit. To the extent there is a conflict
between this Agreement and the Application, the terms of this Agreement shall
govern. Any drawn but unreimbursed amounts under a Facility 2 Letter of Credit
will accrue interest at the Prime Rate, which interest shall be payable monthly
on the first (1st) day of each month. Payment of interest shall not relieve
Borrower of its obligation to reimburse Bank immediately for any drawing made
under a Facility 2 Letter of Credit. Prior to the Facility 2 Letter of Credit
Maturity Date, Borrowers shall secure in cash all obligations under any
outstanding Facility 2 Letters of Credit on terms acceptable to Bank. At such
time after the Facility 2 Letter of Credit Maturity Date as all remaining
Facility 2 Letters of Credit have been secured by cash collateral as set forth
in the preceding sentence, and so long as all other Obligations have been repaid
in full, Bank’s security interest in all of Borrowers’ assets other than such
cash collateral shall immediately terminate, and Bank shall take all actions
reasonably necessary to effect such termination. Borrowers may not request cash
advances under the Facility 2 Letter of Credit Line.

                                              (ii)           The obligation of
Borrowers to reimburse Bank for drawings made under Facility 2 Letters of Credit
shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement, the Application, and
such Facility 2 Letters of Credit, under all circumstances whatsoever. Borrowers
shall indemnify, defend, protect, and hold Bank harmless from any loss, cost,
expense or liability, including, without limitation, reasonable attorneys’ fees,
arising out of or in connection with any Facility 2 Letters of Credit, except
for expenses caused by the gross negligence or willful misconduct of Bank, its
employees, agents and representatives.

                    3.           Section 2.4(a) of the Agreement is hereby
amended in its entirety to read as follows:

                              (a)           Commitment Fee. Borrowers shall pay
to Bank a Commitment Fee equal to 0.0125% per annum of the average unused
portion of the Revolving Line and the Facility 2 Letter of Credit Line. Such fee
shall be payable in quarterly installments on the last day of each quarter or,
in the case of the quarter in which the final maturity of the Obligations falls,
on such final maturity date. Each quarterly installment shall be calculated on
the average unused portion of the Revolving Line plus the average unused portion
of the Facility 2 Letter of Credit Line during such quarter (provided that such
fee shall be waived in any quarter in which the average daily balance of
Borrowers’ deposits with Bank in such quarter exceeds $20,000,000); and

                    4.           A new Section 3.3 is hereby added to the
Agreement to read as follows:

              3.3           Additional Condition Precedent to all Credit
Extensions. The obligation of Bank to make each Credit Extension is subject to
the condition precedent that the balance of Borrower’s cash and Cash Equivalents
be such that Borrowers will be in compliance with Section 5.8 both before and
after the making of the requested Credit Extension.

                    5.           Sections 5.7 and 5.8 of the Agreement are
hereby amended to read as follows:

              5.7           [Intentionally Omitted.]

              5.8           Depository Balances. At all times during the term of
this Agreement, Borrowers, collectively, shall maintain in unrestricted deposit
accounts maintained by Bank, or in certificates of deposit issued by Bank, a
balance of cash and Cash Equivalents that is at least equal to the outstanding
balance of the Credit Extensions (including without limitation any contingent
obligations such as letters of credit and private partner guaranties). Borrowers
shall maintain their principal depository accounts with Bank. Each Borrower
authorizes Bank to decline to honor any checks, drafts or other items of payment
or directions to wire or otherwise

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transfer funds from Bank if and to the extent that, after giving effect to the
payment of any such item or transfer of such funds, Borrowers would not be in
compliance with this Section.

                    6.           Exhibit B to the Agreement is hereby amended to
read as Exhibit B attached hereto.

                    7.           As set forth in Section 8.6 of the Agreement,
Borrowers have granted and continue to grant to Bank a security interest in all
deposit accounts, money market accounts, certificates of deposit, and any other
accounts held by a Borrower or Borrowers at Bank, together with all property now
or in the future held therein and all substitutions thereof, all interest paid
thereon, and all other cash and noncash proceeds of the foregoing, as security
for the prompt performance of the Obligations, including without limitation the
additional Obligations under the Facility 2 Letter of Credit Line.

                    8.           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.

                    9.           Each Borrower represents and warrants that the
Representations and Warranties contained in the Agreement (other than those that
relate to a specific date, which representations and warranties are true and
correct as of such date) are true and correct as of the date of this Amendment,
and that no Event of Default has occurred and is continuing.

                    10.           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.

                    11.           As a condition to the effectiveness of this
Amendment, Bank shall have received, in form and substance satisfactory to Bank,
the following:

                                      (a)           this Amendment, duly
executed by Borrowers;

                                      (b)           Resolutions to Borrow from
each Borrower;

                                      (c)           Disbursement Instructions
and Auto-Debit Authorization;

                                      (d)           an Affirmation and Amendment
of Guaranty;

                                      (e)           an opinion of counsel to
Borrowers and Guarantor;

                                      (f)           an amount equal to all Bank
Expenses incurred through the date of this Amendment; and

                                      (g)           such other documents, and
completion of such other matters, as Bank may reasonably deem necessary or
appropriate.

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                    IN WITNESS WHEREOF, the undersigned have executed this
Amendment as of the first date above written.

              SAFEGUARD DELAWARE, INC.
 
       
 
       
 
  By:   /s/ Steve Grenfell
 
     

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  Title:   Vice President
 
     

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            SAFEGUARD SCIENTIFICS
(DELAWARE), 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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EXHIBIT B

COMPLIANCE CERTIFICATE

     
TO:
  COMERICA BANK
 
   
FROM:
  SAFEGUARD DELAWARE, INC. & SAFEGUARD SCIENTIFICS (DELAWARE), INC.

               The undersigned authorized officer of SAFEGUARD DELAWARE, INC.
and SAFEGUARD SCIENTIFICS (DELAWARE), INC. hereby certifies that in accordance
with the terms and conditions of the Loan Agreement between Borrowers and Bank
(the “Agreement”), (i) each Borrower is in complete compliance for the period
ending                                        with all required covenants except
as noted below and (ii) all representations and warranties of each Borrower
stated in the Agreement are true and correct in all material respects as of the
date hereof. Attached herewith are the required documents supporting the above
certification. The Officer further certifies that these are prepared in
accordance with Generally Accepted Accounting Principles (GAAP) and are
consistently applied from one period to the next except as explained in an
accompanying letter or footnotes.

Please indicate compliance status by circling Yes/No under “Complies” column.

              Reporting Covenant   Required   Complies
 
           
Guarantor:
           
10(Q)
  Quarterly within 45 days (excluding fye)   Yes   No
10(K)
  FYE within 90 days   Yes   No
 
           
Borrowers:
           
Quarterly consolidating financials
  Quarterly within 45 days (excluding fye)   Yes   No
FYE consolidating financials
  FYE within 90 days   Yes   No

                  Financial Covenant   Required   Actual   Complies
 
               
Minimum Unrestricted Cash at Bank
(continuous)
  1x Outstanding Credit Extensions (inc. Private Partner Guaranties and letters
of credit)   $                      Yes   No
Maximum private company impairment charges, excluding mandatory FASB 142 charges
  $50,000,000 over term of Agreement   $                      Yes   No

      Comments Regarding Exceptions: See Attached.
 
   
 
   
 
   
Sincerely,
   
 
   
 
   
 
   

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SIGNATURE
   
 
   
 
   
 
   

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TITLE
   
 
   
 
   

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DATE
   

              BANK USE ONLY
 
           
Received by:
               

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      AUTHORIZED SIGNER

Date:
               

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Verified:
               

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      AUTHORIZED SIGNER

 
           
Date:
               

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            Compliance Status   Yes   No
 
           
 
           
 
           

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