Document:

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                                                                   Exhibit 10.37

                                    TERM NOTE

<<Loan_Amount>>                                                 February 3, 2000

         In consideration of the loan (hereinafter referred to as a "Loan")
Safeguard Scientifics, Inc., a Pennsylvania corporation (the "Lender"), has made
to <<Name>>, (the "Borrower"), and for value received, the Borrower hereby
promises to pay to the order of the Lender, at the Lender's office located at
800 The Safeguard Building, 435 Devon Park Drive, Wayne, PA 19087-1945, or at
such other place in the continental United States as the Lender may designate in
writing, in lawful money of the United States, and in immediately available
funds, the principal sum of <<Loan_Amount>>.

         The unpaid principal balance of the Note shall be paid, in full, on the
earlier of February 28, 2001 or Borrower's termination of employment.

         The Borrower hereby further promises to pay to the order of the Lender
interest on the outstanding principal amount from the date hereof, at a per
annum rate equal to 6.20% (the "Loan Rate"). The Borrower shall pay, on demand,
interest on any overdue payment of principal and interest (to the extent legally
enforceable) at the Loan Rate plus three percent (3%).

         Interest shall be payable upon maturity or early repayment of the
entire outstanding principal balance of the Note.

         All payments made on this Note (including, without limitation,
prepayments) shall be applied, at the option of the Lender, first to late
charges and collection costs, if any, then to accrued interest and then to
principal. Interest payable hereunder shall be calculated for actual days
elapsed on the basis of a 360-day year. All accrued and unpaid interest shall be
due and payable upon maturity of this Note. After maturity or in the event of
default, interest shall continue to accrue on the Note at the rate set forth
above and shall be payable on demand of the Lender.

         The outstanding principal amount of this Note may be prepaid in whole
or in part without any prepayment penalty or premium at any time or from time to
time by Borrower upon notice to the Lender; provided, that any prepayment shall
be applied first to any interest due to the date of such prepayment on this Note
and thereafter shall be applied to the installments of principal hereunder in
the inverse order of maturity.

         Notwithstanding anything in this Note, the interest rate charged hereon
shall not exceed the 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 of this Note.

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<PAGE>   2
         An event of default hereunder shall consist of:

         (i) a default in the payment by the Borrower to the Lender of principal
    or interest under this Note as and when the same shall become due and
    payable; or

         (ii)     an event of default under the Pledge Agreement; or

         (iii) institution of any proceeding by or against the Borrower under
    any present or future bankruptcy or insolvency statute or similar law and,
    if involuntary, if the same are not stayed or dismissed within sixty (60)
    days, or the Borrower's assignment for the benefit of creditors or the
    appointment of a receiver, trustee, conservator or other judicial
    representative for the Borrower or the Borrower's property or the Borrower's
    being adjudicated a bankrupt or insolvent.

         Upon the occurrence of an event of default hereunder, this Note shall
automatically without any action or notice by Lender, be accelerated and become
immediately due and payable, and Lender shall have all of the rights and
remedies provided for herein or otherwise available at law or in equity, all of
which remedies shall be cumulative.

         Neither the reference to nor the provisions of any agreement or
document referred to herein shall affect or impair the absolute and
unconditional obligation of the Borrower to pay the principal of and interest on
this Note as herein provided.

         The Borrower hereby waives presentment, demand, protest and notice of
dishonor and protest, and also waives all other exemptions, and agrees that
extension or 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 the
Lender. Upon default hereunder the Lender shall have the right to offset the
amount owed by the Borrower against any amounts owed by the Lender in any
capacity to the Borrower, whether or not due, and the Lender shall be deemed to
have exercised such right of offset and to have made a charge against any such
account or amounts immediately upon the occurrence of an event of default
hereunder even though such charge is made or entered on the books of the Lender
subsequent thereto. The Borrower shall pay to the Lender, upon demand, all costs
and expenses, including, without limitation, attorneys' fees and legal expenses,
that may be incurred by the Lender in connection with the enforcement of this
Note.

         Notices required to be given hereunder shall be deemed validly given
(i) three business days after sent, postage prepaid, by certified mail, return
receipt requested, (ii) one business day after sent, charges paid by the sender,
by Federal Express Next Day Delivery or other guaranteed delivery service, (iii)
when sent by facsimile transmission, or (iv) when delivered by hand:

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<PAGE>   3

         If to the Lender:         Safeguard Scientifics, Inc.
                                   800 The Safeguard Building
                                   435 Devon Park Drive
                                   Wayne, PA 19087-1945

         If to the Borrower:       <<Name>>
                                   <<Address1>>
                                   <<Address2>>

or to such other address, or in care of such other person, as the holder or the
Borrower shall hereafter specify to the other from time to time by due notice.

         Any failure by the 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 the
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
validity, legality or enforceability of the remainder hereof. This Note shall
apply to and bind the successors of the Borrower and shall inure to the benefit
of the Lender, its successors and assigns.

         This Note shall be governed by and interpreted in accordance with the
laws of the Commonwealth of Pennsylvania.

         IN WITNESS WHEREOF, the Borrower has duly executed this Term Note as of
the date first written above.

                                    ------------------------
                                    <<Name>>

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<PAGE>   4

<TABLE>
<CAPTION>
Name                                                         Amount of Loan
<S>                                                          <C>
Harry Wallaesa                                               $98,544.18
John Halvey                                                  $76,365.00
</TABLE><PAGE>   1
                                                                   Exhibit 10.38

                       [SAFEGUARD SCIENTIFICS, INC. LOGO]
                         STOCK OPTION GRANT CERTIFICATE

Safeguard Scientifics, Inc., a Pennsylvania corporation (the "Company"), hereby
grants to the grantee named below ("Grantee") an option (this "Option") to
purchase the total number of shares shown below of Common Stock of the Company
(the "Shares") at the exercise price per share set forth below, subject to all
of the terms and conditions on the reverse side of this Stock Option Grant
Certificate. The terms and conditions set forth on the reverse side hereof are
incorporated herein by reference.

<TABLE>
<CAPTION>
<S>                      <C>
Grant Date:                March 1, 1999

Type of Option:            Non-qualified Stock Option

Shares Subject to Option:  100,000

Exercise Price Per Share:  $37.0625

Term of Option:            8 years
</TABLE>

Shares subject to issuance under this Option do not vest until the first
anniversary of the grant, and then shall be eligible for exercise according to
the Harry Wallaesa following vesting schedule:

March 1, 2000 to February 28, 2001        25%
March 1, 2001 to February 28, 2002        50%
March 1, 2002 to February 28, 2003        75%
On or after March 1, 2003                100%

In witness whereof, this Stock Option Grant Certificate has been executed by the
Company by a duly authorized officer as of the date specified hereon.

Safeguard Scientifics, Inc.

/s/ Michael Miles
-------------------------------

Grantee acknowledges that the grant and exercise of this Option, and the sale of
Shares obtained through the exercise of this Option, may have tax implications
that could result in adverse tax consequences to the Grantee and that Grantee is
not relying on the Company for any tax, financial or legal advice and will
consult a tax adviser prior to such exercise or disposition.

/s/ Harry Wallaesa
-------------------------------
Harry Wallaesa
<PAGE>   2
1.    Option Expiration. The Option shall automatically terminate upon the
happening of the first of the following events:

      (a) The expiration of the 90-day period after the Grantee ceases to be
employed by the Company, if the termination is for any reason other than
disability, death or cause;

      (b) The expiration of the one-year period after the Grantee ceases to be
employed by the Company on account of the Grantee's disability;

      (c) The expiration of the one-year period after the Grantee ceases to be
employed by the Company if the Grantee dies while employed by the Company or
within three months after the Grantee ceases to be so employed or provide such
services on account of a termination described in subparagraph (a) above; or

      (d)The date on which the Grantee ceases to be employed by the Company for
cause.

      Notwithstanding the foregoing, in no event may the Option be exercised
after the expiration of the Term of Option specified on the reverse side. Any
portion of the Option that is not vested at the time the Grantee ceases to be
employed by the Company shall immediately terminate.

      In the event a Grantee ceases to be employed by the Company for cause, the
Grantee shall automatically forfeit all shares underlying any exercised portion
of an Option for which the Company has not yet delivered the share certificates
upon refund by the Company of the exercise price paid by the Grantee for such
shares.

      For purposes of this Stock Option Grant Certificate, the terms "employed
by the Company," "disability," and "cause" shall have the same meanings as
defined in the Company's 1999 Equity Compensation Plan, and this grant shall be
administered by the same committee that administers the Company's other stock
option plans and grants.

2.    Exercise Procedures.

      (a)Subject to the provisions of this Stock Option Grant Certificate, the
Grantee may exercise part or all of the vested Option by giving the Company
written notice of intent to exercise in the manner provided in Paragraph 11
below, specifying the number of Shares as to which the Option is to be
exercised. On the delivery date, the Grantee shall pay the exercise price (i) in
cash, (ii) by delivering Shares of the Company (duly endorsed for transfer or
accompanied by stock powers signed in blank) which shall be valued at their fair
market value on the date of delivery, or (iii) by such other method as the
Committee may approve, including payment through a broker in accordance with
procedures permitted by Regulation T of the Federal Reserve Board. The Committee
may impose from time to time such limitations as it deems appropriate on the use
of Shares of the Company to exercise the Option.

      (b)The obligation of the Company to deliver Shares upon exercise of the
Option shall be subject to all applicable laws, rules, and regulations and such
approvals by governmental agencies as may be deemed appropriate by the
Committee, including such actions as Company counsel shall deem necessary or
appropriate to comply with relevant securities laws and regulations. The Company
may require that the Grantee (or other person exercising the Option after the
Grantee's death) represent that the Grantee is purchasing Shares for the
Grantee's own account and not with a view to or for sale in connection with any
distribution of the Shares, or such other representation as the Board deems
appropriate. All obligations of the Company under this Stock Option Grant
Certificate shall be subject to the rights of the Company to withhold amounts
required to be withheld for any taxes, if applicable. Subject to Committee
approval, the Grantee may elect to satisfy any income tax withholding obligation
of the Company with respect to the Option by having Shares withheld up to an
amount that does not exceed the maximum marginal tax rate for federal (including
FICA), state and local tax liabilities.

3.    Change of Control. In the event of a Change of Control, the Board may take
such actions as it deems appropriate.

4.    Restrictions on Exercise. Only the Grantee may exercise the Option during
the Grantee's lifetime. After the Grantee's death, the Option shall be
exercisable (subject to the limitations specified in the Plan) solely by the
legal representatives of the Grantee, or by the person who acquires the right to
exercise the Option by will or by the laws of descent and distribution, to the
extent that the Option is exercisable pursuant to this Stock Option Grant
Certificate. Notwithstanding the foregoing, the Committee may provide, at or
after grant, that a Grantee may transfer non-qualified stock options pursuant to
a domestic relations order or to family members or other persons or entities on
such terms as the Committee may determine.

5.    Grant Subject to Standard Provisions. This grant is not made pursuant to
any plan. However, it is intended that this option shall be governed by, and
interpreted in accordance with, the terms which govern other stock options which
may be granted by the Company under its 1999 Equity Compensation Plan. The grant
and exercise of the Option are subject to interpretations, regulations and
determinations established from time to time by the Committee, including, but
not limited to, provisions pertaining to (i) rights and obligations with respect
to withholding taxes, (ii) the registration, qualification or listing of the
Shares, (iii) capital or other changes of the Company, and (iv) other
requirements of applicable law. The Committee shall have the authority to
interpret and construe the Option, and its decisions shall be conclusive as to
any questions arising hereunder.

6.    No Employment Rights. The grant of the Option shall not confer upon the
Grantee any right to be retained by or in the employ of the Company and shall
not interfere in any way with the right of the Company to terminate the
Grantee's employment or service at any time. The right of the Company to
terminate at will the Grantee's employment or service at any time for any reason
is specifically reserved. No policies, procedures or statements of any nature by
or on behalf of the Company (whether written or oral, and whether or not
contained in any formal employee manual or handbook) shall be construed to
modify this Grant Letter or to create express or implied obligations to the
Grantee of any nature.

7.    No Stockholder Rights. Neither the Grantee, nor any person entitled to
exercise the Grantee's rights in the event of the Grantee's death, shall have
any of the rights and privileges of a stockholder with respect to the Shares
subject to the Option until certificates for Shares have been issued upon the
exercise of the Option.

8.    No Disclosure. The Grantee acknowledges that the Company has no duty to
disclose to the Grantee any material information regarding the business of the
Company or affecting the value of the Shares before or at the time of a
termination of the Grantee's employment, including without limitation any plans
regarding a public offering or merger involving the Company.

9.    Assignment and Transfers. The rights and interests of the Grantee under
this Stock Option Grant Certificate may not be sold, assigned, encumbered or
otherwise transferred except, in the event of the death of the Grantee, by will
or by the laws of descent and distribution, or as otherwise permitted by the
Committee in accordance with the terms of this Stock Option Grant Certificate.
In the event of any attempt by the Grantee to alienate, assign, pledge,
hypothecate, or otherwise dispose of the Option or any right hereunder, except
as provided for in this Stock Option Grant Certificate, or in the event of the
levy or any attachment, execution or similar process upon the rights or
interests hereby conferred, the Company may terminate the Option by notice to
the Grantee, and the Option and all rights hereunder shall thereupon become null
and void. The rights and protections of the Company hereunder shall extend to
any successors or assigns of the Company and to the Company's parents,
subsidiaries, and affiliates. This Stock Option Grant Certificate may be
assigned by the Company without the Grantee's consent.

10.   Applicable Law. The validity, construction, interpretation and effect of
this instrument shall be governed by and determined in accordance with the laws
of the Commonwealth of Pennsylvania.

11.   Notice. Any notice to the Company provided for in this instrument shall be
addressed to the Company in care of the Chief Financial Officer at the Company's
headquarters and any notice to the Grantee shall be addressed to such Grantee at
the current address shown on the payroll of the Company, or to such other
address as the Grantee may designate to the Company in writing. Any notice shall
be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope
addressed as stated above, registered and deposited, postage prepaid, in a post
office regularly maintained by the United States Postal Service.

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