Document:

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                                                                   EXHIBIT 10.3

                              CONSULTING AGREEMENT

         CONSULTING AGREEMENT dated July 3, 2001 between Safeguard Scientifics,
Inc. ("Company"), and Vincent G. Bell, Jr. ("Consultant").

                  WHEREAS, it is the mutual desire of the Company and Consultant
         that Consultant provide consulting services to the Company on the terms
         and conditions set forth below:

                  1. Services. Company retains Consultant to serve as Acting
Chief Executive Officer of the Company upon the terms and conditions set forth
below. Consultant shall report to the Board of Directors of the Company. The
Consultant will devote such time to the consulting activities covered hereby as
is needed on a day-to-day basis, not to exceed in any event 30 hours per week.

                  7. Term. This Agreement shall commence on April 11, 2001 and
shall continue until terminated by either party on 30 days prior notice.

                  3. Compensation. For all duties rendered by Consultant
hereunder, Company shall pay Consultant a consulting fee of $5,000 per week,
payable semi-monthly on the Company's normal payroll dates. In addition, to the
extent the Company achieves the performance milestones established by and as
determined by the Compensation Committee of the Board of Directors of the
Company in its sole discretion, Consultant will receive a performance bonus
equal to $130,000 payable in one lump sum no later than March 15, 2002. For so
long as Consultant remains a member of the Board of Directors of the Company,
Consultant shall continue to receive any and all Board of Director fees, option
grants and Board of Director expenses.

                  4. Options. Consultant shall be granted an option (the
"Option") to purchase 100,000 shares of common stock of the Company pursuant to
the Company's 1999 Equity Compensation Plan. The Option shall have an exercise
price equal to the average of the high and low sales price on June 19, 2001,
being the date the Option grant was approved by the Compensation Committee of
the Board of Directors of the Company, and shall be immediately exercisable and
remain exercisable throughout the term of this Agreement and for a period of
four years after termination of this Agreement, but in no event shall the Option
be exercisable after June 19, 2005.

                  5. Expense Reimbursement. During the term hereof, the Company
shall reimburse Consultant for all ordinary and necessary travel, lodging and
related expenses incurred by him with the prior approval of the Company in
connection with the performance of his services hereunder. Such payments shall
be made by the Company upon submission by Consultant of vouchers itemizing such
expenses in a form reasonably satisfactory to the Company.
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                  6. No Additional Benefits. Consultant shall not be entitled to
participate in any of the benefit, welfare, bonus or incentive plans maintained
by the Company for its employees.

                  7. Nondisclosure of Confidential Information Concerning
Business. In his capacity as Consultant, Consultant may acquire from the Company
and/or develop for the Company information respecting inventions, products,
designs, methods, know-how, techniques, systems, processes, software programs,
other technical information, works of authorship, customer lists, financial
information, operation, costs, business plans, projects, plans and proposals)
which is considered proprietary and confidential in nature ("Confidential
Information"), and Consultant will use all reasonable precautions to maintain
the confidentiality of such Confidential Information and will not use for his
personal benefit or the benefit of any other person, or publish or disclose to
third parties, any such Confidential Information during the term of this
Agreement or thereafter except in performing his duties under this Agreement.
Consultant acknowledges that the Confidential Information is a special, valuable
and unique asset of the Company.

                  8. Notices. Any notice pursuant to this Agreement shall be in
writing and shall be deemed given if delivered personally or sent by guaranteed
overnight delivery service or registered or certified mail to the following
addresses:

         If to Consultant:              Vincent G. Bell, Jr.
                                        626 Huston Road
                                        Radnor, PA 19087

         If to the Company:             Safeguard Scientifics, Inc.
                                        800 The Safeguard Building
                                        435 Devon Park Drive
                                        Wayne, PA 19087
                                        Attn:    General Counsel

or to such other addresses as either party may designate to the other in
writing.

                  9. Assignments. Consultant shall not assign this agreement or
subcontract any of the work, labor or services to be performed by Consultant
hereunder without the Company's prior written consent.

                  10. Independent Contractor. In connection with this
engagement, Consultant is acting as an independent contractor and not in any
other capacity.

                  11. Company Property. All files, records, documents, and other
materials relating to the business of the Company, whether prepared by
Consultant or otherwise coming into his possession, shall remain the property of
the Company during the term of this Agreement

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and thereafter. Upon termination of this Agreement for any reason, Consultant
shall promptly return to the Company all such materials and all copies thereof
to the Company.

                  12. Waiver. The waiver by either party of a breach or
violation of any provision of this Agreement shall not constitute or be
construed as a waiver of any subsequent breach or violation of that provision or
as a waiver of any breach or violation of any other provision.

                  13. Integration and Amendment. This Agreement contains the
entire understanding of the parties hereto with respect to the subject matter
hereof and supersedes all prior communications and agreements. This Agreement
and the provisions hereof may not be changed, waived or extended orally but only
by an agreement in writing signed by the party against whom enforcement of any
waiver, change, extension is sought.

                  14. Governing Law. This Agreement and all rights and
obligations of the parties hereunder shall be governed by and be construed and
enforced in accordance with the laws of the Commonwealth of Pennsylvania.
Consultant hereby consents to the jurisdiction of the courts of such
commonwealth in any action or proceeding which may be brought against it under
or in connection with this Agreement, and in the event any such action or
proceeding shall be brought against it, Consultant agrees not to raise any
objection to such jurisdiction or to the laying of the venue thereof in such
state.

         IN WITNESS WHEREOF, the parties have duly executed this Agreement on
the date first written above.

                                                     /s/ VINCENT G. BELL, JR.
                                                     Vincent G. Bell, Jr.

                                                     Safeguard Scientifics, Inc.

                                                     By: /s/ HARRY W. WALLAESA
                                                     Name: Harry W. Wallaesa
                                                     Title: President

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                                                                   EXHIBIT 10.4

                              AMENDED AND RESTATED
                                   DEMAND NOTE

$26,588,734.07                                                      May 18, 2001

                  FOR VALUE RECEIVED, WARREN V. MUSSER ("Borrower"), does hereby
unconditionally promise to pay to the order of BONFIELD INSURANCE, LTD., a
British Virgin Islands corporation, its successors and assigns ("Lender"), at
Lender's office c/o Safeguard Delaware, Inc., 2711 Centerville Road, Suite 400,
Wilmington, DE 19808, or at such other place as Lender may from time to time
designate in writing, the principal sum of TWENTY SIX MILLION FIVE HUNDRED
EIGHTY-EIGHT THOUSAND SEVEN HUNDRED THIRTY-FOUR and 07/100 DOLLARS
($26,588,734.07), or such lesser or other sum as has been advanced to Borrower
from time to time hereunder by Lender or any of its affiliates in accordance
with the Restructuring Agreement (as defined below) and is outstanding, ON
DEMAND, together with interest on the unpaid principal balance under this note
(the "Note"), payable as set forth below.

                  1. Amended and Restated Demand Note. This Note is the "Amended
and Restated Note" as defined in the Agreement to Restructure, dated as of April
16, 2001, by and among Borrower, Hilary Grinker Musser, Safeguard Scientifics,
Inc. ("Safeguard") and Lender (the "Restructuring Agreement") and, as such shall
be construed in accordance with all terms and conditions thereof. Capitalized
terms not defined herein shall have such meaning as provided in the
Restructuring Agreement. This Note is entitled to all of the rights and remedies
provided in the Restructuring Agreement, and the collateral documents relating
thereto, and is secured by all Collateral as described therein.

                  2. Continuing Indebtedness. This Note evidences and
constitutes the renewal, modification and consolidation of (i) the Demand Note
executed by Borrower in favor of Lender, dated as of April 16, 2001, in the
original principal amount of $4,113,279.00, (ii) the Letter Agreement, dated as
of October 4, 2001, as amended on November 8, 2001, by Borrower in favor of
Safeguard, as assigned to Lender pursuant to an Assignment dated as of November
13, 2000 (the "Letter Agreement") and (iii) certain additional advances made or
which may be made pursuant to an in accordance with the Restructuring Agreement.
The execution and delivery of this Note shall not in any circumstances be deemed
to have terminated, extinguished, released or discharged Borrower's indebtedness
under the Demand Note or obligations under the Letter Agreement, which
indebtedness and obligations shall continue under and be governed by this Note
and shall continue to be secured by the collateral security for the Demand Note
and Letter Agreement, as provided under the Restructuring Agreement.

                  3. Rate of Interest. Interest on the principal amount
outstanding from time to time hereunder shall accrue at an annual rate equal to
seven percent (7.0%) (the "Interest Rate") and shall be capitalized annually, on
each anniversary of the date hereof. Interest payable on all advances made
hereunder shall be calculated for actual days elapsed on the basis of a 360-day
year. Notwithstanding anything herein, the Interest Rate charged hereon shall
not exceed the
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maximum rate allowable by applicable law. If any stated interest rate herein
exceeds the maximum allowable rate, then the interest rate shall be reduced to
the maximum allowable rate, and any excess payment of interest made by Borrower
at any time shall be applied to the unpaid balance of any outstanding principal
hereunder.

         4. Payment of Principal and Interest; Prepayments; Offset. Principal
and interest on the principal amount outstanding hereunder shall be due and
payable in full by Borrower upon the demand of Lender; provided, however, that
Lender shall not demand any payment prior to January 1, 2003. Borrower may, from
time to time, prepay all or any portion of the principal balance and other
amounts outstanding hereunder without premium or penalty. Notwithstanding the
foregoing, this Note shall be subject to mandatory prepayment and offset as
required pursuant to Section 4.1(c) of the Restructuring Agreement.

         5. Method and Application of Payments. All amounts payable hereunder
shall be paid by Borrower in lawful money of the United States of America and in
immediately available and freely transferable funds at the place designated by
Lender to Borrower for such payment. All payments made hereon (including,
without limitation, prepayments) shall be applied to fees and expenses
(including attorneys' fees), accrued interest and principal in any order Lender
may choose, in its sole discretion.

         6. Events of Default. Each of the following events shall constitute an
event of default (an "Event of Default") hereunder:

                  a. If Borrower shall fail to pay when due any interest or
principal or any other sum payable to Lender hereunder.

                  b. If (1) Borrower or (2) his spouse, with respect to 2000 tax
obligations or for any subsequent year with respect to which she participates in
a joint filing, shall fail to return to Lender, within three (3) business days
after receipt thereof any tax overpayment refund required to be so returned
pursuant to Section 4.1(a)(2) (incorporating the provisions of Sections
3.1(a)(1)(A)(i) and 3.1(a)(1)(B)(iv) of the Restructuring Agreement).

                  c. If there shall occur any of the following events by
Borrower, his spouse or the WVM Entities:

                           i. Any payments are made or Collateral or other
property subject to the Existing Documents (if any such document then remains
operative) or Related Documents, are sold, mortgaged or otherwise transferred
and/or accepted in violation of the existing obligations of Borrower, his spouse
or the WVM Entities, whether under the Existing Documents (if any such document
then remains operative) or the Related Documents;

                           ii. Any default or event of default, or event which,
with the passage of time, the giving of notice or both, would be a default or
event of default (whether or not such term is used with initial capital
letters), shall have occurred under any of the Existing Documents (if any such
document then remains operative) or any Related Document, so long as same is in
effect;

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                           iii. Any representation or warranty made in the
Restructuring Agreement or in any document, agreement, or instrument required to
be delivered thereunder or in connection therewith shall be false or misleading
in any material respect when made;

                           iv. Any of Borrower, his spouse or any WVM Entity
shall seek to rescind, terminate or contest or otherwise declare ineffective any
document executed and delivered in connection with the Restructuring Agreement;

                           v. Failure to perform any obligations under the
Restructuring Agreement or, except as provided therein, any default in the
performance of any obligation or covenant contained in any document, agreement
or instrument referenced therein.

                  d. If any representation or warranty made by Borrower to
Lender in any statement, certificate or other document, including, without
limitation, the Restructuring Agreement, or any financial statement provide to
Lender, is false, erroneous or misleading in any material respect.

                  e. If Borrower shall become insolvent or bankrupt; or if
Borrower shall admit in writing his inability to pay his debts; or if Borrower
shall suffer the appointment of a receiver or trustee for substantially all of
his property; or if Borrower makes an assignment for the benefit of creditors;
or if proceedings under any law related to bankruptcy or insolvency or the
reorganization or the release of debtors are instituted against Borrower and are
not dismissed or stayed within sixty (60) days; or if a receiver or trustee for
Borrower or a significant portion of his property shall be appointed without
Borrower's consent and such receiver or trustee shall not be discharged within
sixty (60) days; or if proceedings relating to Borrower under any law related to
bankruptcy or insolvency or the reorganization or the release of debtors are
instituted or commenced by Borrower.

                  7. Remedies.

                  a. General Rights of Lender. Upon the occurrence of any Event
of Default, (i) interest shall automatically and without notice begin to accrue
on the outstanding balance of this Note at the rate of nine percent (9.0%) per
annum, (ii) the entire unpaid principal amount of this Note and all unpaid
interest accrued thereon shall, at the sole option of Lender upon notice to
Borrower, become immediately due and payable, (iii) Lender shall have the right
to offset all amounts owed by Borrower hereunder against any amounts owed by
Lender or any of its Affiliates, in any capacity to Borrower, whether or not
due, and (iv) Lender shall thereupon have the immediate right to exercise from
time to time all rights and remedies now or hereafter available at law or in
equity, all of which shall be cumulative in nature including the right to
exercise its remedies with respect to any collateral securing this Note under
the Security Agreement (as defined below) or otherwise.

                  b. Recourse. Until May 18, 2006, this Note shall be a
non-recourse obligation of Borrower, and Lender's rights and remedies are solely
to proceed against the Collateral, as defined in the Security Agreement, and not
to proceed against the Borrower, individually, or to seek recovery from any of
Borrower's other assets or property. The taking of possession of Collateral by
the Lender or the sale of the Collateral to provide funds with which

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to satisfy amounts owed to Lender hereunder shall be Lender's sole remedy and
shall discharge all obligations evidenced by this Note. From and after May 18,
2006, this Note shall constitute a general and direct obligation of Borrower,
with full recourse to all of his assets, except as specifically limited in the
Restructuring Agreement.

         8. Security. Borrower's obligations under this Note are secured by a
security interest in certain of the assets of Borrower and certain of his
affiliates, as provided in the Security Agreement, dated as of even date
herewith, by and between Borrower and Lender (the "Security Agreement") and
related documents and instruments set forth in detail in the Restructuring
Agreement.

         9. Miscellaneous. Except as expressly set forth herein, Borrower hereby
waives presentment, demand, protest and notice of dishonor and protest, and also
waives all other exemptions; and agrees that extensions of the time of payment
of this Note or any installment or part thereof may be made before, at or after
maturity by agreement by Lender. Borrower shall pay to Lender, upon demand, all
costs and expenses that may be incurred by Lender in connection with the
enforcement of this Note including, without limitation, fees and expenses of
Lender's counsel. Any failure by Lender to exercise any right hereunder shall
not be construed as a waiver of the right to exercise the same or any other
right at any time. No amendment to or modification of this Note shall be binding
upon Lender unless in writing and signed by it. Any provision hereof found to be
illegal, invalid or unenforceable for any reason whatsoever shall not affect the
legality, validity or enforceability of the remainder hereof. This Note shall
apply to and bind Borrower, his heirs, administrators, executors, successors and
assigns and shall inure to the benefit of Lender, its successors and assigns;
provided, however, that Borrower may not assign his rights and obligations under
this Note without the express prior written consent of Lender. No course of
dealing on the part of the Lender, nor any delay or failure on the part of the
Lender to exercise any right, shall operate as a waiver of such right or
otherwise prejudice the Lender's rights, powers and remedies. The rights, powers
and remedies of Lender, permitted by law or contract or as stated herein, shall
be cumulative and concurrent and may be exercised or otherwise pursued by Lender
singly, successively or together against Borrower at the sole discretion of
Lender; and the failure to exercise any such right, power or remedy shall in no
event be construed as a waiver or release of the same. Lender shall not by any
act of omission or commission be deemed to waive any of its rights, powers or
remedies hereunder unless such waiver be in writing and signed by Lender, and
then only to the extent specifically set forth therein, and a waiver of one
event shall not be construed as continuing or as a bar to or waiver of such
right, power or remedy on a subsequent event. This Note shall be governed by and
interpreted in accordance with the laws of the Commonwealth of Pennsylvania.
Borrower hereby consents to the jurisdiction of the courts of Pennsylvania in
any action or proceeding which may be brought against Borrower under or in
connection with this Note, and in the event any such action or proceeding shall
be brought against Borrower, Borrower agrees not to raise

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any objection to such jurisdiction or the laying of the venue thereof in
Philadelphia, Pennsylvania.

                  IN WITNESS WHEREOF, Borrower, intending to be legally bound
hereby, has duly executed this Note as of the date first written above.

___________________________________          /S/ WARREN V. MUSSER
Witness                                      Borrower:  Warren V. Musser

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