Document:

<PAGE>

                                                                    EXHIBIT 4.13

                           SAFEGUARD SCIENTIFICS, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

                            EFFECTIVE JANUARY 1, 2003

<PAGE>
\
                           SAFEGUARD SCIENTIFICS, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

                            EFFECTIVE JANUARY 1, 2003

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                 <C>
ARTICLE I         ESTABLISHMENT OF THE PLAN......................................................................    1
ARTICLE II        DEFINITIONS....................................................................................    1
ARTICLE III       ADMINISTRATION OF THE PLAN.....................................................................    3
ARTICLE IV        PARTICIPATION..................................................................................    4
ARTICLE V         PARTICIPANT ACCOUNTS...........................................................................    6
ARTICLE VI        BENEFITS TO PARTICIPANTS.......................................................................    7
ARTICLE VII       CLAIMS PROCEDURES..............................................................................    9
ARTICLE VIII      MISCELLANEOUS..................................................................................   10
</TABLE>

<PAGE>

                           SAFEGUARD SCIENTIFICS, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

                            EFFECTIVE JANUARY 1, 2003

                                    ARTICLE I

                            ESTABLISHMENT OF THE PLAN

         Safeguard Scientifics, Inc. (the "Company") hereby adopts the Safeguard
Scientifics, Inc. Executive Deferred Compensation Plan (the "Plan"), effective
as of January 1, 2003, to allow a select group of key management or other highly
compensated employees of the Company to obtain credits to a Company Contribution
Account (as hereinafter defined). Company intends that the Plan shall at all
times be maintained on an unfunded basis for federal income tax purposes under
the Internal Revenue Code of 1986, as amended (the "Code"), and administered as
a non-qualified, "top hat" plan exempt from the substantive requirements of the
Employee Retirement Income Security of 1974, as amended ("ERISA").

                                   ARTICLE II

                                   DEFINITIONS

         For ease of reference, the following definitions will be used in the
Plan:

         2.1      Account(s). "Account" or "Accounts" means the account or
accounts maintained on the books of the Company used solely to calculate the
amount payable to each Participant under this Plan and shall not constitute a
separate fund of assets.

         2.2.     Base Salary. "Base Salary" means the annual rate of base
salary paid to each Participant as of any date of reference before any reduction
for amounts deferred by the Participant pursuant to a Code Section 401(k) plan
or Code Section 125 plan, or pursuant to this Plan or any other non-qualified
plan that permits voluntary deferrals of compensation.

         2.3.     Beneficiary(ies). "Beneficiary" or "Beneficiaries" means the
person or persons designated by the Participant to receive distributions under
this Plan in the event of the Participant's death, as provided in Section 8.3.

         2.4.     Board or Board of Directors. "Board" or "Board of Directors"
means the Board of Directors of Safeguard Scientifics, Inc. (or any successor
entity).

         2.5.     Change of Control. "Change of Control" means (a) the
stockholders of the Company approve (or, if stockholder approval is not
required, the Board approves) an agreement providing for (i) the merger or
consolidation of the Company with another corporation where the stockholders of
the Company, immediately prior to the merger or consolidation, will not

                                       1
<PAGE>

beneficially own, immediately after the merger or consolidation, shares of the
Company entitling such stockholders to more than 50% of all votes to which all
stockholders of the surviving corporation would be entitled in the election of
directors (without consideration of the rights of any class of stock to elect
directors by a separate class vote), (b) the sale or other disposition of all or
substantially all of the assets of the Company, (c) a liquidation or dissolution
of the Company, (d) the acquisition by any "person" (as such term is used in
sections 13(d) and 14(d) of the Securities and Exchange Act of 1934) [other than
Safeguard Scientifics, Inc. or any of its subsidiaries or affiliates,] of the
"beneficial ownership" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing a majority of
the voting power of the then outstanding securities of the Company except where
the acquisition is approved by the Board, or (e) any person has commenced a
tender offer or exchange offer for a majority of the voting power of the then
outstanding shares of the Company.

         2.6.     Committee. "Committee" means at least three individuals
appointed by the Board to administer the Plan pursuant to Article III and which
also may act for the Company or the Board in making decisions and performing
specified duties under the Plan.

         2.7.     Company. "Company" means Safeguard Scientifics, Inc.

         2.8.     Company Contribution Account. "Company Contribution Account"
means the account for cash Participant established pursuant to Section 4.5
below.

         2.9.     Compensation. "Compensation" means an Eligible Employee's
earned income, wages, salaries and fees for professional services and other
amounts received, without regard to whether or not an amount is paid in cash,
for personal services actually rendered in the course of employment with the
Company as defined in Section 415 of the Code.

         2.10.    Effective Date. "Effective Date" means the effective date of
the Plan which is January 1, 2003.

         2.11.    Eligible Employee. "Eligible Employee" means, as designated by
the Company, in its sole discretion, (i) a managing director, a vice president,
director or higher level employee of the Company, or (ii) any employee, as
designated by the Committee, acting on behalf of the Company, whose Compensation
is at least $90,000 for the preceding Plan Year, as adjusted for inflation by
the Committee, and, in either case, who is a member of a group of key management
or other highly compensated employees of the Company within the meaning of
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. The Company may determine the
eligibility of similarly situated employees.

         2.12.    Employment Commencement Date. "Employment Commencement Date"
means the first day on which an individual became an employee for the Company.

         2.13.    Participant. "Participant" means any Eligible Employee. An
individual shall remain a Participant until that individual has received full
distribution of any amount credited to the Participant's Account.

                                       2
<PAGE>

         2.14.    Plan. "Plan" means this Safeguard Scientifics, Inc. Executive
Deferred Compensation Plan as described herein and as it may be amended from
time to time.

         2.15.    Plan Year. "Plan Year" means the 12 month period beginning on
each January 1 and ending on the following December 31.

         2.16.    Termination Date. "Termination Date" means the date of
termination of a Participant's active employment with the Company without regard
to any compensation continuation arrangement.

         2.17.    Year of Service. A "Year of Service means a Plan Year in which
a Participant has attained 1,000 hours of service; provided, however, that (a)
the Committee shall determine in its sole discretion whether a Year of Service
has been attained; and (b) no more than one (1) Year of Service shall be
credited for any Plan Year; and (c) each Year of Service shall be credited as of
the last day of the calendar quarter during the relevant Plan Year in which the
Participant first attains 1,000 hours of service for that Plan Year.

         2.18.    Valuation Funds. "Valuation Funds" means one or more of the
independently established funds or indices that are identified by the Committee.
These Valuation Funds are used solely to calculate the earnings that are
credited to each Participant's Account(s) in accordance with Article V, below,
and do not represent any beneficial interest on the part of the Participant in
any asset or other property of the Company. The determination of the increase or
decrease in the performance of each Valuation Fund shall be made by the
Committee in its reasonable discretion. Valuation Funds may be replaced, new
funds may be added, or both, from time to time at the discretion of the
Committee.

                                  ARTICLE III

                           ADMINISTRATION OF THE PLAN

         3.1.     Committee. The Plan shall be administered by the Committee
appointed by the Board of Directors. The Board shall designate one of the
members of the Committee to serve as Chairperson thereof. The Board shall also
designate a person to serve as Secretary of the Committee, which person may be,
but need not be, a member of the Committee. A member of the Committee may resign
by delivering a written notice of resignation to the Board. The Board, in its
sole discretion, may remove any member of the Committee. Vacancies in the
membership of the Committee shall be filled promptly by the Board.

         3.2.     Action by the Committee. A majority of the members of the
Committee shall constitute a quorum for the transaction of business at a meeting
of the Committee and the Committee may delegate any of its functions hereunder.
Any action of the Committee may be taken upon the affirmative vote of a majority
of the members of the Committee at a meeting, or at the direction of the
Chairperson, without a meeting by unanimous consent of the Committee or by mail,
telegraph, telephone or electronic communication device; provided that all of
the

                                       3
<PAGE>

members of the Committee are informed of their right to vote on the matter
before the Committee and of the outcome of the vote thereon.

         3.3.     Committee Authority and Duties. The Committee shall have the
full power, authority and discretion to construe, interpret and administer the
Plan, to correct deficiencies therein, to supply omissions, and to make factual
determinations. All decisions, actions and interpretations of the Committee
shall be final, binding and conclusive upon all persons having any interest in
the Plan.

         3.4.     Compensation, Expenses and Indemnification. Members of the
Committee shall receive no compensation for their services as such. All
reasonable expenses of the Committee shall be paid or reimbursed by the Company
upon proper documentation. The Company shall indemnify and hold harmless each
member of the Committee from any and all claims, losses, damages, expenses
(including counsel fees) and liability (including any amounts paid in settlement
of any claim or any other matter with the consent of the Company) arising from
any act or failure to act with respect to this Plan on account of such member's
service on the Committee, except in the case of gross negligence or willful
misconduct.

                                   ARTICLE IV

                                  PARTICIPATION

         4.1.     New Eligible Employees. The Committee may, in its discretion,
permit an employee who first becomes an Eligible Employee after the beginning of
a Plan Year, to participate in the Plan for that Plan Year.

         4.2      Company Contribution. The Company, in its sole discretion, may
determine to credit a Participant's Company Contribution Account with positive
amounts for any Plan Year on such terms as the Company shall determine. Absent
action by the Company to the contrary, the Company Contribution Account shall
consist of:

         (a)      a fully vested amount equal to a stated percentage (which may
vary from year to year) of the Participant's annual Compensation for the Plan
Year not in excess of the limit imposed by Section 401(a)(17) of the Code; and

         (b)      an amount equal to a stated percentage (which may vary from
year to year) of the Participant's Base Salary for the Plan Year; not in excess
of the limit imposed by Section 401(a)(17) of the Code; subject to a vesting
schedule pursuant to which such account shall vest twenty percent (20%) in each
Plan Year in which the Participant attains a Year of Service.

         4.3      Change of Status. The Committee, in its sole discretion, may
determine that a Participant no longer qualifies as a member of a select group
of key management or other highly compensated employees under ERISA, and to take
such further action in light of such determination as the Committee determines
appropriate in its sole discretion.

                                       4
<PAGE>

                                   ARTICLE V

                              PARTICIPANT ACCOUNTS

         5.1.     Establishment of Accounts. The Company shall establish and
maintain a separate Account with respect to a Participant. The Participant's
Accounts shall be reduced by the amount of payments made by the Company to the
Participant or the Participant's Beneficiary pursuant to this Plan.

         5.2.     Earnings (or Losses) on Accounts. At such time as the
Committee designates Valuation Funds for the deemed investment of each
Participant's Account balance, each Participant's Accounts shall be credited
semi-annually with all deemed earnings (or losses) generated by the Valuation
Funds, as if the designated balance of the Account had been invested in the
applicable Valuation Fund.

         5.3.     Valuation of Accounts. The value of a Participant's Accounts
as of any date shall equal the amounts theretofore credited to such Accounts,
including any earnings (positive or negative) deemed to be earned on such
Account in accordance with Section 5.2, less the amounts theretofore deducted
from such Accounts.

         5.4.     Statement of Accounts. The Committee shall provide to each
Participant, not less frequently than semi-annually, a statement in such form as
the Committee deems desirable setting forth the balance standing to the credit
of each Participant's Account(s).

         5.5.     Distributions from Accounts. Any distribution made to or on
behalf of a Participant from his or her Accounts in an amount which is less than
the entire balance of any such Account shall be made pro rata from each of the
Valuation Funds to which such Account is then allocated on the day before
distribution under the Plan.

         5.6.     Vesting. A Participant's Account balances shall be vested in
accordance with Section 4.2.

                                   ARTICLE VI

                            BENEFITS TO PARTICIPANTS

         6.1.     Benefits from a Retirement Account. Benefits from a
Participant's Account shall be paid to the Participant as follows:

                  (a)      The Participant's Retirement Account shall be
distributed in a lump sum within thirty (30) business days following the
Participant's Termination Date. Any lump-sum benefit payable in accordance with
this Section shall be in an amount equal to the value of such Retirement Account
as of the business day the Valuation Funds are deemed to be liquidated to make
the payment.

                                       5
<PAGE>

                  (b)      Upon the death of a Participant prior to the
commencement of benefits under this Plan from any particular Account, the
Participant's designated Beneficiary shall be treated as a Participant under
Section 6.1(a) with the distribution to be made to such Beneficiary.

         6.2.     Change of Control. In the event of a Change of Control, within
60 days thereafter, a Participant may elect to receive the full value then
credited to the Participant's Accounts. If a Participant elects to be paid a
benefit under this Section 6.3, the lump sum payment due to the Participant (or
Beneficiary, in the event of the Participant's death) under this Section shall
be made no later than the end of the calendar year in which the Change in
Control occurred.

         6.3.     Unforeseeable Financial Emergency. In the event that the
Committee, upon written request of a Participant, determines that the
Participant has suffered an unforeseeable financial emergency, the Company shall
pay to the Participant from the Participant's Account(s), as soon as practicable
following such determination, an amount necessary to meet the emergency (the
"Emergency Benefit"), after deduction of any and all taxes as may be required
pursuant to Section 6.5. For purposes of this Plan, an unforeseeable financial
emergency is an unexpected need for cash arising from an illness, casualty loss,
sudden financial reversal, or other such unforeseeable occurrence. Cash needs
arising from foreseeable events such as the purchase of a house or education
expenses for children shall not be considered to be the result of an
unforeseeable financial emergency. With respect to that portion of any Account
which is distributed to a Participant as an Emergency Benefit, in accordance
with this Article, no further benefit shall be payable to the Participant under
this Plan. It is intended that the Committee's determination as to whether a
Participant has suffered an "unforeseeable financial emergency" shall be made
consistent with the requirements under section 457(d) of the Code.

         6.4.     Withdrawal of Participation. The Participant may elect to
cause all or a portion of the Participant's Account balances to be distributed
in accordance with this Article VI as if the Participant had terminated service
with the Company as of the time of such election, except that the amount
distributed to the Participant shall be reduced by a penalty of ten percent
(10%), but not in excess of $50,000.

         6.5.     Withholding Taxes. The Company may make such provisions and
take such action as it may deem necessary or appropriate for the withholding of
any taxes which the Company is required by any law or regulation of any
governmental authority, whether federal, state or local, to withhold in
connection with any benefits under the Plan, including, but not limited to, the
withholding of appropriate sums from any amount otherwise payable to the
Participant (or his or her Beneficiary). Each Participant, however, shall be
responsible for the payment of all individual tax liabilities relating to any
such benefits.

         6.6.     Effect of Payment. The full payment of the applicable benefit
under this Article VI shall completely discharge all obligations on the part of
the Company to the Participant (and the Participant's Beneficiary) with respect
to the operation of this Plan, and the Participant's (and Participant's
Beneficiary's) rights under this Plan shall terminate.

                                       6
<PAGE>

                                  ARTICLE VII

                                CLAIMS PROCEDURES

         7.1.     Claim. A Participant who believes that he or she is being
denied a benefit to which he or she is entitled under the Plan may file a
written request for such benefit with the Committee, setting forth the claim.

         7.2.     Claim Decision. Upon receipt of a claim, the Committee shall
advise the Participant that a reply will be forthcoming within 90 days and
shall, in fact, deliver such reply within such period. The Committee may,
however, extend the reply period for an additional 90 days for reasonable cause.

                  (a)      If the claim is denied in whole or in part, the
Participant shall be provided a written opinion, using language calculated to be
understood by the Participant, setting forth:

                           (i)      the specific reason or reasons for such
denial;

                           (ii)     the specific reference to relevant
provisions of this Plan on which such denial is based;

                           (iii)    a description of any additional material or
information necessary for the Participant to perfect his or her claim and an
explanation why such material or such information is necessary;

                           (iv)     appropriate information as to the steps to
be taken if the Participant wishes to submit the claim for review;

                           (v)      the time limits for requesting a review
under Section 7.3 and for review under Section 7.4 hereof; and

                           (vi)     the Participant's right to bring an action
for benefits under Section 502 of ERISA.

         7.3.     Request for Review. Within 60 days after the receipt by the
Participant of the written opinion described above, the Participant may request
in writing that the Committee review the determination of the Committee. The
Participant or his or her duly authorized representative may, but need not,
review the relevant documents and submit issues and comment in writing for
consideration by the Committee. If the Participant does not request a review of
the initial determination within such 60-day period, the Participant shall be
barred and stopped from challenging the determination.

         7.4.     Review of Decision. After considering all materials presented
by the Participant, the Committee will render a written opinion, setting forth
the specific reasons for the decision and containing specific references to the
relevant provisions of this Plan on which the decision is based. The Committee
shall within 30 days of receipt of the Participant's request for review shall
schedule a meeting to review the Participant's request.

                                       7
<PAGE>

                                  ARTICLE VIII

                                  MISCELLANEOUS

         8.1.     Protective Provisions. Each Participant and Beneficiary shall
cooperate with the Committee by furnishing any and all information requested by
the Committee in order to facilitate the payment of benefits hereunder. If a
Participant or Beneficiary refuses to cooperate with the Committee, the Company
shall have no further obligation to the Participant or Beneficiary under the
Plan, other than payment of the then-current balance of the Participant's
Accounts in accordance with prior elections.

         8.2.     Inability to Locate Participant or Beneficiary. In the event
that the Committee is unable to locate a Participant or Beneficiary within two
years following the date the Participant was to commence receiving payment, the
entire amount allocated to the Participant's Accounts shall be forfeited. If,
after such forfeiture, the Participant or Beneficiary later claims such benefit,
such benefit shall be reinstated without interest or earnings from the date
payment was to commence pursuant to Article VI.

         8.3.     Designation of Beneficiary. Each Participant may designate in
writing a Beneficiary or Beneficiaries (which Beneficiary may be an entity other
than a natural person) to receive any payments which may be made following the
Participant's death. No Beneficiary designation shall become effective until it
is in writing and it is filed with the Committee. Such designation may be
changed or canceled by the Participant at any time without the consent of any
such Beneficiary. Any such designation, change or cancellation must be made in a
form approved by the Committee and shall not be effective until received by the
Committee, or its designee. A Beneficiary designation under the Plan may be
separate from all other retirement-type plans sponsored by the Company. If a
Participant designates more than one Beneficiary, the interests of such
Beneficiaries shall be paid in equal shares, unless the Participant has
specifically designated otherwise. If there is no Beneficiary designation in
effect, or if there is no surviving designated Beneficiary, then the
Participant's surviving spouse shall be the Beneficiary. If there is no
surviving spouse to receive any benefits payable in accordance with the
preceding sentence, the duly appointed and currently acting personal
representative of the participant's estate (which shall include either the
Participant's probate estate or living trust) shall be the Beneficiary. In any
case where there is no such personal representative of the Participant's estate
duly appointed and acting in that capacity within 90 days after the
Participant's death (or such extended period as the Committee determines is
reasonably necessary to allow such personal representative to be appointed, but
not to exceed 180 days after the Participant's death), then Beneficiary shall
mean the person or persons who can verify by affidavit or court order to the
satisfaction of the Committee that they are legally entitled to receive the
benefits specified hereunder. In the event any amount is payable under the Plan
to a minor, payment shall not be made to the minor, but instead be paid (i) to
that person's living parent(s) to act as custodian, (ii) if that person's
parents are then divorced, and one parent is the sole custodial parent, to such
custodial parent, or (iii) if no parent of that person is then living, to a
custodian selected by the Committee to hold the funds for the minor under the
Uniform Transfers or Gifts to Minors Act in effect in the jurisdiction in which
the minor resides. If no parent is living and the Committee decides not to
select another custodian to hold the funds for the minor, then payment shall be
made to the duly appointed and

                                       8
<PAGE>

currently acting guardian of the estate for the minor or, if no guardian of the
estate for the minor is duly appointed and currently acting within 60 days after
the date the amount becomes payable, payment shall be deposited with the court
having jurisdiction over the estate of the minor.

         8.4.     No Contract of Employment. Neither the establishment of the
Plan, nor any modification thereof, nor the creation of any fund, trust or
account, nor the payment of any benefits shall be construed as giving any
Participant or any person whosoever, the right to be retained in the service of
the Company, and all Participants and other employees shall remain subject to
discharge to the same extent as if the Plan had never been adopted.

         8.5.     No Limitation on Company Actions. Nothing contained in the
Plan shall be construed to prevent the Company from taking any action which is
deemed by it to be appropriate or in its best interest. No Participant,
Beneficiary, or other person shall have any claim against the Company as a
result of such action.

         8.6.     Obligations to Company. If a Participant becomes entitled to a
distribution of benefits under the Plan, and if at such time the Participant has
outstanding any debt, obligation, or other liability representing an amount
owing to the Company, then the Company may offset such amount owed to it against
the amount of benefits otherwise distributable. Such determination shall be made
by the Committee.

         8.7.     Nonalienation of Benefits. The Company shall pay all amounts
payable hereunder only to the person or persons designated by the Plan and not
to any other person or corporation. No part of a Participant's Accounts shall be
liable for the debts, contracts, or engagements of any Participant, his or her
Beneficiary, or successors in interest, nor shall a Participant's Accounts be
subject to execution by levy, attachment, or garnishment or by any other legal
or equitable proceeding, nor shall any such person have any right to alienate,
anticipate, commute, pledge, encumber, or assign any benefits or payments
hereunder in any manner whatsoever. If any Participant, Beneficiary or successor
in interest is adjudicated bankrupt or purports to anticipate, alienate, sell,
transfer, assign, pledge, encumber or charge any distribution or payment from
the Plan, voluntarily or involuntarily, the Committee, in its discretion, may
cancel such distribution or payment (or any part thereof) to or for the benefit
of such Participant, Beneficiary or successor in interest in such mariner as the
Committee shall direct. The Company's obligations under this Plan are not
assignable or transferable except to (a) any corporation or partnership which
acquires all or substantially all of the Company's assets or (b) any corporation
or partnership into which the Company may be merged or consolidated. The
provisions of the Plan shall inure to the benefit of each Participant and the
Participant's Beneficiaries, heirs, executors, administrators or successors in
interest.

         8.8.     Unfunded Status of Plan. The Plan is intended to constitute an
"unfunded" deferred compensation plan for Participants. Nothing contained in the
Plan, and no action taken pursuant to the Plan, shall create or be construed to
create a trust of any kind. The Company shall reflect in Accounts on its books
the Participants' interests hereunder, but no Participant or any other person
shall under any circumstances acquire any property interest in any specific
assets of the Company. Nothing contained in this Plan and no action taken
pursuant hereto shall create or be construed to create a fiduciary relationship
between the Company and any Participant

                                       9
<PAGE>

or other person. A Participant's right to receive payments under the Plan shall
be no greater than the right of an unsecured general creditor of the Company.
Except to the extent that the Board determines that a "rabbi" trust may be
established in connection with the Plan, all payments shall be made from the
general funds of the Company, and no special or separate fund shall be
established and no segregation of assets shall be made to assure payment.

         8.9.     Severability of Provisions. If any provision of this Plan
shall be held invalid or unenforceable, such invalidity or unenforceability
shall not affect any other provisions hereof, and this Plan shall be construed
and enforced as if such provisions had not been included.

         8.10.    Governing Law. This Plan shall be construed in accordance with
and governed by the laws of the Commonwealth of Pennsylvania to the extent not
superseded by federal law, without reference to the principles of conflict of
laws.

         8.11.    Headings and Captions. The headings and captions herein are
provided for reference and convenience only, shall not be considered part of the
Plan, and shall not be employed in the construction of the Plan.

         8.12.    Gender, Singular and Plural. All pronouns and any variations
thereof shall be deemed to refer to the masculine, feminine, or neuter, as the
identity of the person or persons may require. As the context may require, the
singular may read as the plural and the plural as the singular.

         8.13.    Notice. Any notice or filing required or permitted to be given
to the Committee under the Plan shall be sufficient if in writing and hand
delivered, or sent by registered or certified mail, to the Company's Chief
Financial Officer, or to such other person or entity as the Committee may
designate from time to time. Such notice shall be deemed given as to the date of
delivery, or, if delivery is made by mail, as of the date shown on the postmark
on the receipt for registration or certification.

         8.14.    Amendment and Termination. The Plan may be amended, suspended,
or terminated at any time by the Board; provided, however, that no such
amendment, suspension or termination shall reduce or in any manner adversely
effect the rights of any Participant with respect to benefits payable or may
become payable under the Plan; and provided, further, that upon a termination of
the Plan the Company may immediately liquidate the Plan and pay all benefits
whether or not a Participant has reached his or her Termination Date.

                                       10<PAGE>

                                                                   EXHIBIT 10.19

                                SECOND AMENDMENT
                                       TO
                                 LOAN AGREEMENT

         This Second Amendment to Loan Agreement is entered into as of February
12, 2004 (the "Amendment"), by and among COMERICA BANK, successor by merger to
COMERICA BANK - CALIFORNIA ("Bank") and 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 that certain First
Amendment to Loan Agreement dated as of May 9, 2003 (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 new defined term is hereby added to Section 1.1
of the Agreement to read as follows:

                           "Debentures" means those certain Convertible Senior
         Debentures issued by Guarantor pursuant to the Offering Memorandum
         dated February 11, 2004, in substantially the form provided to Bank on
         February 10, 2004, up to an aggregate principal amount of $200,000,000.

         2.       Section 5.8 of the Agreement is hereby amended in its entirety
to read as follows:

                  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
         two (2.0) times the outstanding balance of the Credit Extensions.
         Borrowers shall maintain their principal depository accounts with Bank.
         Borrower authorizes Bank to decline to honor any checks, drafts or
         other items of payment or directions to wire or otherwise 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, Borrower would not
         be in compliance with this Section.

         3.       A new Section 5.9 is hereby added to the Agreement to read in
its entirety as follows:

                  5.9      Notification. Borrowers shall immediately notify Bank
         of any default or failure by Guarantor to perform any material
         obligation under the Debentures.

         4.       Section 7.7 of the Agreement is hereby amended in its entirety
to read as follows:

                  7.7      Other Agreements. If there is (i) a default or
         failure by a Borrower to perform any obligation in any agreement to
         which a Borrower (after the expiration of any grace or cure period
         applicable thereto) is a party with a third party or parties resulting
         in a right by such third party or parties, whether or not exercised, to
         accelerate the maturity of any Indebtedness in an amount in excess of
         Two Million Dollars ($2,000,000) or that is reasonably likely to have a

                                       1
<PAGE>

         Material Adverse Effect or (ii) an Event of Default or an "event of
         default" or a "designated event" occurs under the Debentures;

         5.       The following clause is hereby added to the end of Section 7.8
of the Agreement to read as follows: "provided that Guarantor may use the
proceeds of the Debentures to repay pre-existing debt obligations as set forth
in the Offering Memorandum dated February 11, 2004 relating to in the Debenture,
whether through repurchase, retirement, or one or more privately negotiated
transactions."

         6.       A new Section 8.6 is hereby added to the Agreement to read as
follows:

                  8.6      Deposit Accounts.

                           (a)      Borrowers hereby 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 (collectively, the
         "Collateral"), as security for the prompt performance of the
         Obligations. Upon the occurrence and during the continuance of an Event
         of Default, Bank shall have the right to exercise all such rights as a
         secured party under the Code as it, in its sole judgment, shall deem
         necessary or appropriate, including without limitation the right to
         apply the Collateral against the Obligations

                           (b)      If an Event of Default has occurred which is
         continuing, (i) Borrower shall have no further right to request Credit
         Extensions and (ii) Borrower authorizes Bank to hold balances
         maintained by a Borrower or Borrowers in accounts (including without
         limitation money market accounts and deposit accounts) and certificates
         of deposit at Bank up to the aggregate outstanding balance of the
         Credit Extensions in pledge and to decline to honor any drafts thereon
         or any request by Borrower or any other Person to pay or otherwise
         transfer any part of such balances for so long as any Obligations are
         outstanding.

         7.       Bank hereby consents to the issuance by Guarantor of the
Debentures.

         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)      a nonrefundable amendment fee equal to $15,000 plus
an amount equal to all Bank Expenses incurred through the date of this
Amendment; and

                                       2
<PAGE>

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

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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

                         SAFEGUARD DELAWARE, INC.

                         By: CHRISTOPHER J. DAVIS
                             --------------------

                         Title: Managing Director & Chief Financial Officer

                         SAFEGUARD SCIENTIFICS
                         (DELAWARE), INC.

                         By: CHRISTOPHER J. DAVIS
                             --------------------

                         Title: Managing Director & Chief Financial Officer

                         COMERICA BANK

                         By: STACEY ARRIGO KELLY
                             -------------------

                         Title: Vice President

                                       3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}]]