Document:

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                                                                    EXHIBIT 10.3

October 18, 2002

Kevin O'Boyle

c/o ChromaVision Medical Systems, Inc.
33171 Paseo Cerveza
San Juan Capistrano, CA  92675

Dear Kevin,

        The purpose of this letter is consolidate into one document our
agreement as to the terms of your employment by ChromaVision Medical Systems,
Inc. (the "Company") and to modify those terms as set forth below. This letter
completely supersedes the letters dated November 6, 1996 (including Attachment A
thereto), January 10, 2001 and February 1, 2001 from the Company to you relating
to the terms of your employment.

        1. Position. Subject to Section 10, you will continue to be employed as
the Chief Operating Officer and Chief Financial Officer of the Company.

        2. Compensation and Benefits. You will continue to paid at your present
salary, including vacation accrual, and you will continue to participate in the
same medical, dental, life insurance and 401(k) programs, except that if the
Company changes any of those programs for its senior executives generally, the
Company will have the right to make the same changes for you.

        3. Continuation of Salary and Benefits in the Event of Termination
Without Cause. In the event your employment is terminated by the Company without
cause (including as a result of a change in control), or you terminate your
employment for good reason, the Company will do each of the following, subject
to the provisions of Section 7:

                (a) continue to pay your salary for a period of one year from
        the date of termination of your employment at the rate in effect
        immediately prior to such termination, with payment to be made to you on
        the dates such salary would have been paid if your employment had not
        been terminated, but you shall cease to be entitled to such payments if
        you compete with the Company, as defined below, or if you solicit for
        employment or hire any employee of the Company;

                (b) pay you your pro rata share of any bonus that would have
        been paid to you for 2002 if bonuses are paid to other senior executives
        of the Company, such pro rata share to be determined by dividing the
        number of days in 2002 that you were employed by 365.

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                (c) continue to pay the premium for your existing health
        insurance for you and your family and, to the extent the Company can do
        so under its existing and any replacement group insurance policies,
        continue your existing vision and dental coverage for you and your
        family, in each case for 12 months after the termination of your
        employment (including any period as may be required by law), except
        that:

                        (i) such health insurance and any such vision and dental
                coverage will be discontinued if you become re-employed and are
                eligible for comparable or better health insurance benefits from
                your new employer or if you cease to be eligible for COBRA
                benefits, and

                        (ii) subject to the condition that you sign the General
                Release and Assignment, you deliver it to the Company within the
                21 day period referred to below and that you do not rescind it,
                the Company will continue such health insurance and, to the
                extent it can do so under its existing and any replacement group
                insurance policies, your vision and dental coverage in each case
                for up to an additional six months (after the expiration of the
                initial 12 months referred to above) if you have not become
                re-employed, are not eligible for health insurance as described
                in (i) above, are still eligible for COBRA benefits and have not
                competed with the Company or solicited or hired any employee of
                the Company;

        If you cease to be eligible for COBRA benefits because the Company does
        not pay the premiums for its existing or any replacement group insurance
        policy or the Company ceases to have a group healthcare plan, the
        Company will pay to you for the periods set forth above the amount of
        premium it would otherwise have had to pay for your coverage under the
        current healthcare insurance policy provided that the conditions in (i)
        and (ii) above (other than loss of eligibility for COBRA for the
        foregoing reasons) are satisfied.

                (d) allow your options which are vested on the date of
        termination of your employment (excluding those terminated pursuant to
        Section 8 below) to continue to be vested and be exercisable in
        accordance with their terms for 12 months after the date of termination
        of your employment, accelerate 50% of your options which are unvested
        and unexercisable on the date of termination of your employment
        (excluding those terminated pursuant to Section 8 below) so that they
        become vested and exercisable as of the date of termination of your
        employment and allow those options to remain vested and exercisable for
        12 months after the date of termination of your employment, and allow
        your other stock options (excluding those terminated pursuant to Section
        8 below) to continue to vest and become exercisable in accordance with
        their terms for the 12 months after the date of termination of your
        employment, except (for all such options referred to in this clause (d))
        to the extent that any such options terminate in accordance with their
        terms (or the terms of the plan under which they were issued) because of
        a change in control or other event which causes all options outstanding
        under that plan to terminate;

                (e) subject to the same exception set forth at the end of (d)
        above and subject to the condition that you sign the General Release and
        Agreement referred to below, you deliver it to the Company within the 21
        day period referred to below and you do not rescind it, allow all of
        your options which are vested on the date of termination of your

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        employment, those options which are accelerated pursuant to (d) above
        and those options which are not accelerated but become vested during the
        12 month period referred to in (d) above to continue to be vested and be
        exercisable for an additional 12 months after the expiration of the 12
        month period referred to in (d) above, but all such options shall cease
        to be vested and exercisable if you compete with the Company or if you
        solicit or hire any employee of the Company;

                (f) subject to the condition that you sign the General Release
        and Agreement referred to below, you deliver it to the Company within
        the 21 day period referred to below and you do not rescind it and
        subject to the further condition that you elect to continue your
        existing life insurance policy after the termination of your employment,
        reimburse you for the premiums for the life insurance payable for the
        one year period after termination of your employment or such shorter
        period until you become re-employed, but you shall cease to be entitled
        to such reimbursement if you compete with the Company or if you solicit
        or hire any employee of the Company; and

                (g) pay up to $20,000 for executive outplacement services to be
        rendered on your behalf by a firm to be selected by the Company to be
        paid to the firm when the services commence.

        To determine which options referred to in (d) above will be accelerated,
the options terminated pursuant to Section 8 will first be eliminated from
consideration and the remaining options that are not vested and not exercisable
on the date of termination of your employment will be accelerated and become
vested and exercisable in the order they were granted until options have been
accelerated and become vested and exercisable for that number of shares equal to
50% of the total number of shares as to which the options were unvested and
unexercisable before acceleration. The continuation of the exercisability of
your options pursuant to (d) above and the continuation of the exercisability
and vesting of your options pursuant to (e) above shall be effective even though
the stated term of any such option would have expired without giving effect to
this Agreement.

        For purposes of (a), (c)(ii), (e) and (f) above, you will be deemed to
be competing with the Company if you become a director, officer, employee,
partner, member, consultant, advisor, independent contractor stockholder or
other equity owner of a business engaged in providing equipment or systems used
for cell-based imaging for laboratory diagnostic purposes, except that being the
holder of less than 1% of the outstanding shares of stock of any class of a such
a company that is publicly owned (i.e. a company with a class of securities
registered under Section 12(b) or (g) of the Securities Exchange Act of 1934 or
required to file periodic reports under Section 15(d) of that Act) shall not by
itself be deemed to constitute competing with the Company.

        The benefits referred to in (c)(ii), (e) and (f) above are contingent on
your execution and delivery to the Company of a General Release and Agreement in
the form of Exhibit A to this letter and your not rescinding the General Release
and Agreement. You will have 21 days following your termination of employment in
which to consider the General Release and Agreement, although you may execute it
sooner after termination of your employment. Please note that the General
Release and Agreement has a rescission period of seven days.

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        Nothing in (c) above is intended to or shall limit your rights under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Subparagraph (c)
addresses only the period for and the terms upon which the Company will pay the
cost of the health insurance referred to therein.

        4. Termination for Good Reason. You will be considered to have
terminated your employment "for good reason" only if any of the following events
occur:

                (a) you terminate your employment within 12 months after the
        Company materially reduces your responsibilities, compensation or
        employee benefits, provided that you have given the Company written
        notice of any such reduction and the Company has failed to eliminate the
        good reason within 15 days after receipt of the notice or

                (b) the location of the Company's principal executive office is
        changed to a location that is more than 50 miles from its current
        location.

        5. Voluntarily Termination Without Good Reason. If you terminate your
employment without good reason, you will still be entitled to the benefits set
forth in Section 3 above, but only if you do each of the following:

                (i) give the Company 30 days prior written notice of such
        termination of your employment except but in not event can the notice be
        given before November 17, 2002, and

               (ii) prior to the expiration of the 30-day notice period referred
        to in (i) above, assist with the transition of your responsibilities to
        your replacement while you continue to be employed by the Company.

        No compensation in addition to that set forth in Section 3 will be
payable to you during the period that you provide the assistance referred to in
(ii).

        If you terminate your employment without good reason and do not perform
the obligations set forth in (i) and (ii) above, you will only be entitled to
receive your accrued salary (including accrued vacation) and you will have the
rights with respect to your stock options as are set forth in the stock option
agreements and plan, in each case through the date of your termination of
employment.

        6. Definition of Termination for Cause. Your employment shall be deemed
to have been terminated "for cause" only if it is terminated, or the timing of
the termination, is due to conviction of a felony resulting in material harm to
the Company. Nothing in this Section 6 shall limit the right of the Company to
terminate your employment other than for cause and without any warning or
notice.

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        7. Termination for Death or Disability. If your employment terminates as
a result of your death or disability, the Company will pay to the legal
representative of your estate, in the case of death, or to you or any legal
representative appointed to act on you behalf, in the case of disability, your
accrued salary (including accrued vacation) and any accrued bonuses to the date
of such termination and you or your legal representative will have the rights
with respect to your stock options as are set forth in the applicable stock
option agreements and plan. If you become disabled during the salary
continuation period referred to in Section 3(a), you or your legal
representative will have the right continue to receive the salary continuation
payments contemplated by Section 3(a) but the Company will have no obligation to
continue the salary continuation payments if you die during that period.
Likewise, if you become disabled during the period that the Company is obligated
to pay the premiums for your existing health insurance for you and your family
pursuant to Section 1(c), the Company will continue to pay the premiums for the
remaining portion of the period specified in Section 1(c), but the Company will
have no obligation to pay the premiums if you die during that period. Also, if
you become disabled during the period that the Company is obligated to pay your
life insurance premiums pursuant to Section 1(f), the Company will continue to
pay the premiums for the remaining portion of the period specified in Section
1(f). Disability is defined as inability to work on a full time basis for a
continuous period of six months or more or any six months in a twelve month
period as a result of any emotional or mental disorders, physical diseases or
injuries.

        8. Termination of Options. Concurrently with your execution and delivery
of this Agreement all outstanding stock options held by you having an exercise
price of $8 per share or more are being terminated. Your execution of this
letter constitutes your agreement to the termination of those options.

        9. Employment Taxes. By signing this letter you acknowledge that the
Company will continue to treat you as an employee for purposes of paying the
benefits under this letter. All such payments are subject to such taxes and
withholding requirements as may be imposed by applicable law.

        10. At-Will Employment. Nothing is this letter changes the "at will"
nature of your employment relationship with the Company. Your employment is not
for a specified time and may be terminated at will subject to the terms and
provisions of this Agreement.

        11. Entire Agreement. If executed by you, this letter will constitute
the entire agreement between you and the Company with respect to your employment
and may not be amended or supplemented except in a written document signed by
you and the Company.

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        If this letter correctly sets forth the agreement between you and the
Company, please execute this letter in the place indicated below.

                                        Yours very truly,

                                        CHROMAVISION MEDICAL SYSTEMS, INC.

                                        By
                                          --------------------------------------
                                          Carl W. Apfelbach,
                                          President and Chief Executive Officer

AGREED:

--------------------------------------
KEVIN C. O'BOYLE

Dated:  October __, 2002

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                                                                    EXHIBIT 10.7

                                                               November 27, 2002

Stephen T. D. Dixon
30732 Hunt Club Drive
San Juan Capistrano, CA  92337

Dear Mr. Dixon:

        ChromaVision Medical Systems, Inc. (the "Company") is pleased to enter
into this letter agreement with you (the "Executive") which will address the
terms of Executive's employment with the Company. The Company considers it
essential to the best interests of its stockholders to attract and foster the
continuous employment of key management personnel of the Company and the
arrangements described in this letter are intended to address that goal.

        1. Duties. Commencing on December 2, 2002 (the "Commencement Date")
Executive will serve as Executive Vice-President and Chief Financial Officer and
will report directly to the Chief Executive Officer.

        2. Term. Executive's employment relationship with the Company is
employment "at will". As a result, Executive's employment may be terminated by
the Chief Executive Officer, the Board of Directors or by Executive at any time
(subject to the notice provision below), in each case without any liability or
obligation, except as set forth in this letter. If Executive terminates his
employment, he shall give the Company written notice of such termination not
less than 60 days prior to the effective date of such termination. In light of
the severance benefits provided for in Section 6, the Company will have no
obligation to give Executive prior notice of any such termination by the Company
(whether or not such termination is without cause).

        3. Compensation.

                (a) Base Salary. During the term of Executive's employment,
Executive will receive a base salary of $245,000 per annum, subject to review
and potential increase at the sole discretion of the Company.

                (b) Bonus. During 2003, Executive will participate in the 2003
Management Incentive Plan (the "MIP") at an annual target bonus percentage equal
to 55% of Executive's base salary conditioned upon meeting the performance
targets to be set forth in the MIP, payable on or before March 15, 2004 except
for guaranteed portion as provided in (c) below. If the Commencement Day is
after the first day of 2003, any such bonus payment shall be pro-rated for the
portion of the year during which Executive served as an employee of the Company.

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                (c) Guaranteed Bonus. Of Executive's target 2003 bonus, $75,000
will be guaranteed and shall be paid to Executive as follows: $30,000 on or
before January 6, 2003 and the remaining $45,000 on or before January 5, 2004,
but the $45,000 will not be paid and Executive will repay the $30,000 if
Executive voluntarily terminates his employment before January 1, 2004 or the
Company terminates his employment for cause before that date.

                (d) Sign-On Bonus. The Company will pay Executive $120,000 as a
sign-on bonus payable $60,000 on January 6, 2003 and $60,000 on January 5, 2004,
except that: the $60,000 payable on January 5, 2004 will be reduced by an amount
equal to any portion of the loan payable by Executive to his existing employer
which is forgiven or does not otherwise have to be paid, but in no event will
such reduction exceed $25,000.

        4. Option Grant. On the Commencement Date, Executive will be granted an
option to purchase 300,000 shares of Common Stock of the Company, which option
shares will vest 25% on the first anniversary of the Commencement Date and the
remaining 75% of which will vest in equal monthly installments during the three
year period commencing on the first anniversary of the date hereof. The option
will not be granted under the Company's 1996 Equity Compensation Plan (the
"Option Plan") but will have the same terms as the standard form agreement
currently in use under the Option Plan (including such terms as are incorporated
therein from the Options Plan itself). The option will have an exercise price
equal to the last sale price of Company Common Stock on the Commencement Date
and will expire on the eighth anniversary of the date hereof (subject to earlier
termination in accordance with the terms of the Option Plan and standard form of
agreement thereunder). Additional equity grants may be awarded commencing in
2004 by action of the Board of Directors or a duly authorized committee of the
Board.

        5. Fringe Benefits. Executive will be paid a car allowance at the rate
of $600 per month; is eligible for group life and accidental death and
dismemberment insurance in an amount equal to twice the Executive's annual base
salary not to exceed $600,000 (assuming that Executive meets normal insurability
requirements.) If insurability requirements cannot be met, the maximum amount of
group life insurance benefit is $225,000. Executive will be offered the
opportunity to purchase voluntary life insurance for himself and his spouse and
children, if applicable; and otherwise be eligible to participate in all other
benefits programs offered generally by the Company to its other Executives,
including medical, dental, and vision insurance, short and long term disability
insurance, 401k Plan, flexible spending account (Section 125) plan, and employee
assistance program. The Company will also reimburse Executive for the cost of
health insurance for him and his immediate family provided under his present
employer's plan pursuant to COBRA for any period between the Commencement Date
and the date health insurance coverage begins under the Company's health
insurance plan. Executive will also be entitled to seventeen (17) days of
vacation which will accrue from Commencement Date at the rate of 5.23 hours each
biweekly pay period. Executive may not accrue more than forty (40) hours above
his eligible vacation allowance per year. All vacation accrued will carry over
year to year; however, the point at which the total number of vacation hours
accrued exceeds the maximum allowable, no additional accruals will be earned
until the amount is reduced below the maximum. After Executive has completed
three full years of employment, the vacation accrual rate will be increased to
twenty-two (22) days per year at the accrual rate of 6.77 hours for each
biweekly pay period.

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        6. Severance Payments. Subject to the provisions of (d) below and the
other terms and conditions of this letter, in the event (i) the Company
terminates Executive's employment without cause, (ii) within twelve months after
a Change of Control Executive terminates his employment with good reason, or
(iii) Executive's employment terminates as a result of Executive's death or
disability (any of the foregoing being a "Severance Termination"), the Company
will provide Executive the following benefits, which shall be the only severance
benefits or other payments in respect of Executive's employment with the Company
to which Executive shall be entitled. Without limiting the generality of the
foregoing, these benefits are in respect of all salary (except for salary for
periods ending on the date of termination), accrued vacation and other rights
which Executive may have against the Company or its affiliates.

                (a) After a Severance Termination, Executive will receive
payment of an amount equal to his annual base salary in effect at the time of
the Severance Termination. In addition, if a bonus arrangement is part of
Executive's compensation package for the year when a Severance Termination
occurs, after a Severance Termination Executive will be entitled to receive an
amount equal to a full year's bonus at the target amount. In the event that
Executive's bonus or any portion thereof involves two or more alternative target
amounts for performance, the target amount for purposes of this Section 6 will
be the average of the highest and lowest amounts potentially payable. If the
lowest amount which Executive could earn as any part of a bonus is zero, that
amount shall be excluded from the foregoing calculation.

                (b) Upon a Severance Termination Executive will be able to
exercise any options which have become exercisable on or before the termination
date until the earlier of (a) the first anniversary of the date of termination
or (b) the expiration date of the option.

                (c) Upon a Severance Termination, Executive will receive
continued coverage under the Company's medical and health plans for 12 months
following the termination date (including any period as may be required by law),
provided that coverage will end if Executive obtains comparable coverage from a
subsequent employer or otherwise ceases to be eligible for COBRA benefits. In
addition, the Company will reimburse Executive for the premiums for a 12-month
period after a Severance Termination for continuation of any life insurance
policy issued for Executive's benefit under the Company's then existing life
insurance plan if Executive elects to continue the policy, provided that such
reimbursement will end if Executive obtains comparable life insurance from a
subsequent employer. If Executive ceases to be eligible for COBRA because the
Company does not pay the premiums for its existing or group insurance policy or
the Company ceases to have a group healthcare plan, the Company will pay
Executive, for any portion of the 12 month period referred to above during which
Executive's COBRA eligibility ceases for such reasons, the amount of the premium
it would have had to pay for Executive's coverage under the then existing, or if
none, the most recently existing, health care insurance policy. Executive should
consult with the Company's Manager of Human Resources concerning the process for
assuming ownership of and continued premium payments for any life policy at the
end of such 12 month period. Upon a Severance Termination, Executive will
receive up to $15,000 for the actual out-of-pocket cost of outplacement services
or office space which Executive secures upon receipt by the Company of
reasonable documentation of the incurring of such costs. Executive will be
reimbursed in accordance with Company policies promptly for all of Executive's
reasonable and necessary business expenses incurred on behalf of the Company
prior to Executive's termination date.

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                (d) All compensation and benefits described above in (a) through
(c) of this Section 6 will be contingent upon (i) Executive's execution of a
release of all claims against the Company substantially in the form of Exhibit
A, (ii) Executive's not engaging in any Competition (as defined in Section 7 of
this Agreement) with the Company during the period referred to in paragraph (a)
above and (iii) Executive's not engaging in any Solicitation (as defined in
Section 7 of this Agreement).

                (e) The Company will pay Executive the amounts described in (a)
and (c) above in 12 equal monthly installments with the first payment being
payable on the date when the seven-day rescission period referred to below with
respect to the release expires. The Company will prepare the final release
(which will be substantially in the form attached as Exhibit A to this letter)
and deliver it to Executive within five business days of Executive's termination
of employment. Executive will have 21 days in which to consider the release
although Executive may execute it sooner. Please note that the release has a
rescission period of seven days.

                (f) Subject to the provisions of paragraph (d) above, the
Company will pay interest on payments that are more than ten days past due at
the prime rate at the Company's principal bank (or, if none, Citibank N.A.) plus
2 percent compounded monthly. In addition, the Company will pay all reasonable
costs and expenses (including reasonable attorney's fees and all costs of
arbitration or court proceedings) incurred by Executive to enforce this
agreement or any obligation hereunder but only if Executive is the prevailing
party in any such proceeding. If the Company is the prevailing party, Executive
will pay all of the Company's reasonable costs and expenses (including
reasonable attorneys' fees and all costs of arbitration or court proceedings)
incurred in connection with any such proceeding.

                (g) In this letter, the term "cause" means (a) Executive's
failure to adhere to any written policy of the Company if Executive has been
given a reasonable opportunity to comply with such policy and cure Executive's
failure to comply (which reasonable opportunity to cure must be granted for a
period of ten days); (b) Executive's appropriation (or attempted appropriation)
of a business opportunity of the Company, including attempting to secure or
securing any personal profit in connection with any transaction entered into on
behalf of the Company; (c) Executive's misappropriation (or attempted
misappropriation) of any of the Company's funds or property (including without
limitation trade secrets and other intellectual property); or (d) Executive's
conviction of, indictment for (or its procedural equivalent), or Executive's
entering of a guilty plea or plea of no contest with respect to, a felony, the
equivalent thereof, or any other crime with respect to which imprisonment is a
possible punishment. In this letter, the term "good reason" means (i)
Executive's assignment (without Executive's consent) to a position, title,
responsibilities, or duties of a materially lesser status or degree of
responsibility than the position, responsibilities, or duties of chief financial
officer, or Executive being required to report to any person other than the
Chief Executive Officer; or (ii) a reduction of Executive's base salary; or
(iii) the relocation of the Company's offices at which Executive is based to a
location which is more 30 miles from the location of the Company's principal
offices on the date of this letter; provided, however, that Executive must have
given the written notice that Executive believes he has the right to terminate
employment for good reason, specifying in reasonable detail the events
comprising the good reason, and the Company fails to eliminate the good reason
within 15 days after receipt of the notice.

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                (h) In this letter, the term "Change of Control" means (a) the
issuance, sale, transfer or acquisition by the Company of shares of capital
stock of the Company (including a transfer as a result of death, disability,
operation of law, or otherwise) in a single transaction or a group of related
transactions, as a result of which any entity, person, or group (other than
Safeguard Scientifics, Inc. and/or its affiliates) acquires the beneficial
ownership of newly issued, outstanding or treasury shares of the capital stock
of the Company having 50% or more of the combined voting power of the Company's
then outstanding securities entitled to vote for at least a majority of the
authorized number of directors of the Company or (b) any merger, consolidation,
sale of all or substantially all the assets or other comparable transaction as a
result of which all or substantially all of the assets and business of the
Company are acquired directly or indirectly by another entity (except Safeguard
Scientifics, Inc. and/or any of its affiliates). An "affiliate" of an entity is
an entity controlling, controlled by or under common control with the entity
specified, directly or indirectly through one or more intermediaries. "Group"
shall have the same meaning as in section 13(d) of the Securities Exchange Act
of 1934, and "beneficial ownership" shall have the meaning set forth in Rule
13d-3 of the Securities and Exchange Commission adopted under the Securities
Exchange Act of 1934.

                (i) Executive will not be required to mitigate the amount of any
payment provided for in this letter by seeking other employment or otherwise.

                (j) Executive acknowledges that the arrangements described in
this letter will be the only obligations of the Company or its affiliates in
connection with any determination by the Company to terminate Executive's
employment with the Company. This letter does not terminate, alter, or affect
Executive's rights under any plan or program of the Company in which Executive
may participate, except as explicitly set forth herein. Executive's
participation in such plans or programs will be governed by the terms of such
plans and programs.

        7. Definitions of Competition and Solicitation. (a) For purposes of
Section 6(d) of this Agreement, Executive shall be deemed to have engaged in
"Competition" with the Company if, without prior written approval of the Board
of Directors of the Company, Executive directly or indirectly through any other
person, firm or corporation, whether individually or in conjunction with any
other person, or as an employee, agent, consultant, representative, partner or
holder of any interest in any other person, firm, corporation or other
association during any portion of the term of this Agreement and any renewals
and extensions hereof or the period of salary continuation referred to in
Section 6(a), competes with, or encourages or assists others to compete with, or
solicit orders or otherwise participate in business transactions or provide
services in competition with, the business engaged in by the Company at any time
during the term of Executive's employment (unless such business shall have been
abandoned by the Company). Executive acknowledges that the Company's products
are marketed throughout the United States, that therefore the Company is engaged
in business in every county and state of the United States and that the
foregoing definition of "competition" includes competition in every county and
state of the United States.

                (b) For purposes of Section 6(d) of this Agreement
"Solicitation" shall mean (A) soliciting, enticing or inducing any Customer (as
defined below) to become a client, customer, OEM, distributor or reseller of any
other person, firm or corporation with respect to, or provide, products or
services which are competitive with products or services then sold or under
development by the Company or to cease doing business with the Company or
authorizing or knowingly approving the

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taking of such actions by any other person or (B) soliciting, enticing or
inducing directly or indirectly, or hiring any person who presently is or at any
time during the term hereof shall be an employee of the Company to become
employed by any other person, firm or corporation or to leave his or her
employment with the Company or authorizing or approving any such action by any
other person or entity.

                (c) For purposes of this Section 7, "Customer" means any person
or entity which at the time of determination if made prior to termination of
employment, or, after termination of employment, at the time of such
termination, shall be, or shall have been within two years prior to such time, a
client, customer, OEM, distributor or reseller of the Company or a bona fide
prospect to become a Customer.

                (d) Competition shall not include investing in the securities of
any corporation having securities listed on a national securities exchange, the
Nasdaq National Market or the Nasdaq SmallCap Market, provided that such
investment does not exceed 5% of any class of securities of any corporation
engaged in business in competition with the Company, and provided that such
ownership represents a passive investment and that neither Executive nor any
group of persons including him, in any way, either directly or indirectly,
manages or exercises control of any such corporation, guarantees any of its
financial obligations, otherwise takes any part in its business, other than
exercising his rights as a shareholder, or seeks to do any of the foregoing.

                (e) Executive acknowledges (i) that his experience and
capabilities are such that the conditions in Section 6(d) to his receiving the
severance benefits referred to in Section 6 will not prevent him from obtaining
employment or otherwise earning a living at the same general economic benefit as
reasonably required by him without losing the severance benefits and (ii) that
he has, prior to the execution of this Agreement, reviewed this Agreement with
his legal counsel. Executive acknowledges that the provisions contained in this
Section 7 and in Section 6(d) are reasonable and necessary to protect the
legitimate business interests of the Company and that the Company would not have
entered into this Agreement in the absence of such provisions.

        8. Other Payments in the Event of Termination of Employment. In the
event of termination of Executive's employment for any reason, Executive will be
entitled to receive upon such termination payment of all accrued, unpaid salary
to the date of termination and a pro rata for portion of any bonus which had
been earned at the date of termination, including fully satisfying any
performance criteria. "Pro rata portion" means the number of days in the
calendar year of termination up to and including the date of termination divided
by the total number of days in that full calendar year.

        9. Withholding; Nature of Obligations. The Company will withhold
applicable taxes and other legally required deductions from all payments to be
made hereunder. The Company's obligations to make payments under this letter are
unfunded and unsecured and will be paid out of the general assets of the
Company.

                10. Miscellaneous. The agreement will inure to the benefit of
Executive's personal representatives, executors, and heirs. In the event
Executive dies while any amount payable under this agreement remains unpaid, all
such amounts will be paid to the parties legally entitled thereto in accordance
with the terms and conditions of this letter. No term or condition set forth in
this letter

                                       6
<PAGE>

may be modified, waived or discharged unless such waiver, modification or
discharge is agreed to in writing and signed by Executive and an officer of the
Company authorized to sign such writing by the Board of Directors of the Company
or an authorized committee thereof. This agreement will be construed and
enforced in accordance with the laws of the State of California without regard
to the conflicts of laws of any state. Any controversy or claim arising out of
or relating to this agreement, or the breach thereof, will be settled by
arbitration in Los Angeles or Orange County, California in accordance with the
National Rules for the Resolution of Employment Disputes of the American
Arbitration Association, using one arbitrator, and judgment upon the award
rendered by the arbitrator may be entered in any court of competent
jurisdiction.

        If this letter sets forth our agreement on the subject matter hereof,
kindly sign and return to us the enclosed copy of this letter which will then
constitute our legally binding agreement on this subject.

                                       Sincerely,

                                       CHROMAVISION MEDICAL SYSTEMS, INC.

                                       -----------------------------------------
                                       By: Carl W. Apfelbach
                                       Title: President, Chief Executive Officer

I agree to the terms and conditions of this letter

---------------------------------
Stephen T. D. Dixon

Dated: November __, 2002

                                       7
<PAGE>

                                                                       EXHIBIT A

                          GENERAL RELEASE AND AGREEMENT

NOTICE:

        Various state and federal laws, including the Civil Rights Act of 1964
and 1991 and the Age Discrimination in Employment Act, prohibit employment
discrimination based on age, sex, race, color, national origin, religion,
disability and veteran status. These laws are enforced through the Equal
Employment Opportunity Commission (EEOC), the Department of Labor and state
civil rights agencies.

        If you sign this General Release and Agreement and accept the
agreed-upon special severance allowance and other termination benefits described
in the letter addressed to you which accompanies this release, you are giving up
your right to file a lawsuit pursuant to the aforementioned federal, state and
local laws in local, state or federal courts against ChromaVision Medical
Systems, Inc. and its affiliates, as defined in the General Release and
Agreement (the "Releasees,") with respect to any claims relating to your
employment or termination therefrom which arise up to the date this Agreement is
executed.

        By signing this General Release and Agreement you waive your right to
recover any damages or other relief in any claim or suit brought by or though
the Equal Employment Opportunity Commission or any other state or local agency
on your behalf under and federal or state discrimination law, except where
prohibited by law. You agree to release and discharge each Releasee not only
from any and all claims which you could make on your own behalf but also
specifically waive any right to become, and promise not to become, a member of
any class in any proceeding or case in which a claim or claims against a
Releasee may arise, in whole or in part, from any event which occurred as of the
date of this Agreement. You agree to pay for any legal fees or cost incurred by
any Releasee as a result of any breach of the promises in this paragraph. The
parties agree that if you, by no action of your own, become a mandatory member
of any class from which you cannot, by operation of law or order of court, opt
out, you shall not be required to pay for any legal fees or costs incurred by a
Releasee as a result.

        We encourage you to discuss the following release language with an
attorney prior to executing this Agreement. In any event, you should thoroughly
review and understand the effect of the release before acting on it. Therefore,
please take this release home and consider it for up to twenty-one (21) days
before you decide to sign it.

<PAGE>

                          GENERAL RELEASE AND AGREEMENT

        This GENERAL RELEASE AND AGREEMENT (hereinafter the "Release") is made
and entered into as of this ___ day of ______, ____, by and between CHROMAVISION
MEDICAL SYSTEMS, INC. (the "Company") and STEPHEN T. D. DIXON ("Employee").

        1. Background. The parties hereto acknowledge that this Release is being
entered into pursuant to the terms of the Letter Agreement, dated November __,
2002 (the "Letter Agreement"), between the Company and Employee. As used in this
Release, any reference to the Company shall include its predecessors and
successors and, in their capacities as such, all of its present, past, and
future directors, officers, employees, attorneys, insurers, agents and assigns,
as well as all Company affiliates, subdivisions, subsidiaries and parents,
including without limitation Safeguard Scientifics, Inc. and its subsidiaries
(collectively, the "Company Affiliates") and their respective past, present and
future directors, officers, employees, consultants, attorneys, insurers, agents
and assigns; and any reference to Employee shall include, in their capacities as
such, his attorneys, heirs, administrators, representatives, agents and assigns.

        2. Resignation from Boards. Employee shall, and hereby does resign from
such Boards and officer positions with the Company and all affiliates and
partner companies of the Company as such employee holds on the date hereof. In
this regard, Employee agrees to pre-sign and deliver to the Company resignation
letters acceptable to the Company in order to effect Employee's resignation from
certain companies and entities, and we may submit other such letters from time
to time, although nothing contained herein shall prohibit Employee from
resigning from such boards and officer positions at an earlier time.

        3. General Release.

                (a) Employee, for and in consideration of the special transition
services and corresponding separation payments and other benefits offered to him
or her by the Company specified in the Letter Agreement that accompanies this
Release, and intending to be legally bound, does hereby REMISE, RELEASE AND
FOREVER DISCHARGE the Company and the Company Affiliates, of and from any and
all causes of actions, suits, debts, claims and demands whatsoever in law or in
equity, which he ever had, now has, or hereafter may have or which his or her
heirs, executors or administrators may have, by reason of any matter, cause or
thing whatsoever, from the beginning of his or her employment with the Company
and/or the Company Affiliates to the date of this Release, and particularly, but
without limitation, any claims arising from or relating in any way to his or her
employment or the separation of his or her employment relationship with the
Company, including, but not limited to, any claims arising under any federal,
state, or local laws, including Title VII of the Civil Rights Act of 1964, as
amended, 42 U.S.C. Section 2000e et seq., ("Title VII"), the Age Discrimination
in Employment Act, 29 U.S.C. Section 621 et seq. ("the ADEA"), the Americans
with Disabilities

<PAGE>

Act, 42 U.S.C. Section 12101 et seq. ("ADA"), the Employee Retirement Income
Security Act of 1974, 29 U.S.C. Section 301, et seq., as amended ("ERISA"), and
any and all other federal, state or local laws, and any common law claims now or
hereafter recognized, including claims for wrongful discharge, slander and
defamation, as well as all claims for counsel fees and costs.

                (b) By signing this Release, Employee represents that Employee
has not commenced any proceeding against the Company or any Company Affiliate in
any forum (administrative or judicial) concerning Employee's employment.

                (c) Employee agrees and covenants not to sue or to bring, or
assign to any third person, any claims or charges against the Company or any
Company Affiliate with respect to any known matter arising before the date of
this Release or covered by the release and not to assert against the Company or
any Company Affiliate in any action, grievance, suit, litigation or proceeding
any known matter before the date of this Release or covered by the release.
Employee agrees that in the event of a breach of any covenant of this Release by
Employee, the Company or any Company Affiliate damaged as a result of such
breach shall be entitled to recover attorneys' fees and costs in an action
relating to such breach, in addition to compensatory damages.

                (d) Anything herein to the contrary notwithstanding, neither
party is released from any of his, her or its obligations under this Release or
the Letter Agreement, and each party confirms that such obligations are the only
obligations of the Company or its affiliates in connection with the cessation of
Employee's service with the Company.

                (e) Employee acknowledges that this Release extends to all
causes of action, suits, debts, claims and demands referred to in (a) above,
known or unknown, suspected or unsuspected. By signing this Release, Employee
expressly waives all rights under Section 1542 of the California Civil Code,
which reads in full as follows:

                "A General Release does not extend to claims which the creditor
                does not know or suspect to exist in his favor at the time of
                executing the release, which if known by him must have
                materially affected his settlement with the debtor."

                (f) By signing this Release and the Letter Agreement and by
making the payments and providing the benefits contemplated by the Letter
Agreement, the Company does not admit any liability, wrongdoing or fault and
expressly denies any such liability, wrongdoing or fault.

        4. Confidentiality; Non-Disparagement.

                (a) Except to the extent required by law, including SEC
disclosure requirements, the Employee agrees that the terms of this Release will
be kept confidential

                                       2
<PAGE>

by Employee, except that Employee may advise his or her family and confidential
advisors.

                (b) Employee will not at any time knowingly reveal to any person
or entity any of the trade secrets or confidential information of the Company or
the Company Affiliates or of any third party which the Company is under an
obligation to keep confidential (including but not limited to trade secrets or
confidential information respecting inventions, products, designs, methods,
know-how, techniques, systems, processes, software programs, works of
authorship, customer lists, projects, plans and proposals), and Employee shall
keep secret all confidential matters relating to the Company or the Company
Affiliates and shall not use or attempt to use any such confidential information
in any manner which injures or causes loss or may reasonably be calculated to
injure or cause loss whether directly or indirectly to the Company or the
Company Affiliates. These restrictions contained in this sub-paragraph (b) shall
not apply to: (i) information that at the time of disclosure is in the public
domain through no fault of Employee; (ii) information received from a third
party outside of the Company that was disclosed without a breach of any
confidentiality obligation; (iii) information approved for release by written
authorization of the Company or the Company Affiliate; or (iv) information that
may be required by law or an order of the court, agency or proceeding to be
disclosed; provided, Employee shall provide the Company notice of any such
required disclosure once Employee has knowledge of it and will help the Company
at the Company's expense to the extent reasonable to obtain an appropriate
protective order.

                (c) Employee represents that Employee has not taken, used or
knowingly permitted to be used any notes, memorandum, reports, lists, records,
drawings, sketches, specifications, software programs, data, documentation or
other materials of any nature relating to any matter within the scope of the
business of the Company, the Company Affiliates or their partner companies or
concerning any of its dealings or affairs otherwise than for the benefit of the
Company or the Company Affiliates. Employee shall not, after his or her
termination of his or her employment, use or knowingly permit to be used any
such notes, memoranda, reports, lists, records, drawings, sketches,
specifications, software programs, data, documentation or other materials, it
being agreed that all of the foregoing shall be and remain the sole and
exclusive property of the Company, the Company Affiliate or client of the same,
as the case may be, and that immediately upon the effectiveness of Employee's
resignation from employment, Employee shall deliver all of the foregoing, and
all copies thereof, to the Company, at its main office.

                (d) In accordance with normal ethical and professional
standards, the Company and Employee agree that they shall not in any way engage
in any conduct or make any statement that would defame or disparage the other,
or make to, or solicit for, the media or others, any comments, statements
(whether written or oral), and the like that may be considered to be derogatory
or detrimental to the good name or business reputation of either party. It is
understood and agreed that the Company's obligation under this paragraph extends
only to the conduct of the Company's senior officers. The only exception to the
foregoing shall be in those circumstances in which Employee or the

                                       3
<PAGE>

Company is obligated to provide information in response to an investigation by a
duly authorized governmental entity or in connection with legal proceedings.

        5. Indemnity.

                (a) This Release shall not release the Company or any of its
insurance carriers from any obligation it or they might otherwise have to defend
and/or indemnify Employee and hold him harmless from any claims made against him
arising out of his activities as director or officer of the Company, to the same
extent as the Company or its insurance carriers are or may be obligated to
defend and/or indemnify and hold harmless any other director or officer and the
Company affirms its obligation to provide indemnification to Employee as a
director, officer, former director or former officer of the Company, as set
forth in the Company's bylaws and charter documents in effect on the date of the
Letter Agreement.

                (b) Employee agrees that Employee will personally provide
reasonable assistance and cooperation to the Company, at the Company's expense,
in activities related to the prosecution or defense of any pending or future
lawsuits or claims involving the Company.

        6. General.

                (a) Employee understands that this Release is revocable by
Employee for a period of seven (7) days following execution of the Release. This
Release shall not become effective or enforceable until this seven (7) day
revocation period has ended

                (b) Employee has carefully read and fully understands all the
provisions of the Notice and the Release which set forth the entire agreement
between Employee and the Company, and Employee acknowledges that Employee has
not relied upon any representation or statement, written or oral, not set forth
in this document.

                (c) Employee agrees that any breach of this Release or
corresponding Letter Agreement by Employee will cause irreparable damage to the
Company and that in the event of such breach the Company shall have, in addition
to any and all remedies of law, the right to an injunction, specific performance
or other equitable relief to prevent the violation of my obligations hereunder.

                (d) No term or condition set forth in this Release may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by Employee and a duly authorized officer of the
Company.

                                       4
<PAGE>

                (e) Any waiver by the Company of a breach of any provision of
this Release shall not operate or be construed as a waiver of any subsequent
breach of such provision or any other provision hereof.

        IN WITNESS WHEREOF, the parties have executed this Release as of the
date written above.

Dated:
      -----------------                 ----------------------------------------
                                                 STEPHEN T. D. DIXON

                                        CHROMAVISION MEDICAL SYSTEMS, INC.

Dated:                                  By:
      ----------------                     -------------------------------------
                                                        Title:

                                       5

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