Document:

<PAGE>
                                                                   Exhibit 10.12

                                                    August 28, 2001

Mr. Gerald A. Blitstein
411 North Rose Lane
Haverford, Pennsylvania 19041

Dear Mr. Blitstein:

This letter agreement sets forth the terms of an agreement between you and
Safeguard Scientifics, Inc. ("Safeguard") as a result of your resignation as an
executive officer of the Company. Safeguard has agreed to provide you with the
benefits set forth in this letter on the terms and conditions described herein.

     -   On the first business day which is at least eight days after the date
         upon which you have signed and returned to Safeguard the Release,
         described below, you will be paid an aggregate amount of $1,308,500,
         of which $308,500 will be paid to you and $1 Million will be deposited
         in a rabbi trust having distribution terms and a trustee acceptable to
         you which satisfies the provision of the Internal Revenue Code related
         to "rabbi trusts", payable in the amounts and on the dates set forth
         below:

     -   You will become vested in all stock options granted to you as set
         forth on the attached schedule and may exercise those stock options
         during the 36-month period following your termination of employment
         (unless any of the options would by their terms expire sooner, in
         which case you may exercise such options at any time before their
         expiration).

     -   Vesting of your interest in the various LTIPs in which you participate
         will cease on the date hereof and you will receive benefits under the
         various LTIP's in accordance with the terms and conditions of such
         plans; provided, however that if SOTAS, Inc. is disposed of before
         year-end, your LTIP interest with respect to the Sotas, Inc.
         disposition will be deemed to be 100% accelerated.

     -   You will receive reimbursement of reasonable relocation expenses
         (together with reimbursement of loss and expenses, if any, on the sale
         of your Philadelphia residence) if you choose to irrevocably list for
         sale your residence at the address below to relocate to New York.

     -   You will continue to be provided to the benefits set forth in the
         letter, dated March 6, 2001 from the Chief Executive Officer of
         Safeguard on behalf of Safeguard to you with respect to reimbursement
         for losses and
<PAGE>
                                                                             -2-

         expenses for 411 North Rose Lane, Haverford, Pennsylvania (the
         "Residence"), subject to the following modifications to which you
         agree: (i) the letter shall only apply if the Residence is irrevocably
         listed for sale on or before December 31, 2002; (ii) Safeguard may
         direct and prosecute the sales process provided it uses a licensed real
         estate broker agreed to by you and Safeguard (or if the parties are
         unable to reach such agreement, chosen by Safeguard with your approval
         which shall not be unreasonably withheld) to market the property; and
         (iii) in determining any loss or expense on the Residence, no more than
         $50,000 of capital improvements made by you shall be included in
         determining your basis in the Residence. You will receive all amounts
         due under this paragraph within 5 days after the closing of the sale of
         the Residence and delivery of reasonable documentation supporting the
         reimbursement amount or if earlier, on the 90th day following such
         listing for sale of the Residence.

     -   You will receive up to 18-month's continued coverage under Safeguard's
         medical and health plans and life insurance plans (including the
         Executive Medical Plan); coverage will end if you obtain coverage from
         a subsequent employer.

     -   You will be reimbursed promptly for all your documented reasonable and
         necessary business expenses incurred on behalf of Safeguard prior to
         your termination date.

     -   If you elect to rollover your 401(k) or pension plan into another plan
         or an IRA, you should consult with our Vice-President - Taxes on the
         tax efficient handling of Safeguard shares held in your 401(k) and
         pension plan.

     -   You will be able to keep your computer, dockstation, and Palm Pilot.
         You will be able to use your e-mail address, phone number, voicemail
         and Help Desk services until the 180th day after the date of this
         letter.

     -   You will be paid for 14 accrued vacation days, which constitutes all
         back vacation days not taken by you, payable on or before the next pay
         period following your termination date.

         Pursuant to a Consulting Services Agreement, of even date herewith
("the Agreement") between Safeguard and GB Inc., GB Inc. will provide consulting
services to Safeguard for a period of up to six months for a base amount of
$41,667 per month.

         All obligations of Safeguard under this letter agreement and the
Agreement will become effective only on the first business day which is eight
days after the date upon which you have signed and returned to Safeguard the
release in the form attached to this letter.
<PAGE>
                                                                             -3-

         All payments will be made to you within five business days of the date
on which they become due or, in the case of payments payable on notice from you,
within five business days of such notice.

         You hereby resign immediately from your office as Executive Vice
President and Chief Financial Officer of Safeguard and from all other offices or
directorships which you hold for Safeguard or any Safeguard direct or indirect
subsidiary or partner company. You acknowledge that your authority to sign or
act on behalf of Safeguard Scientifics, Inc. or its affiliates is hereby revoked
except as expressly authorized in writing by the Acting Chief Executive Officer.

         The agreement will inure to the benefit of your personal
representatives, executors, and heirs. In the event you die while any amount
payable under this agreement remains unpaid, all such amounts will be paid in
accordance with the terms and conditions of this letter.

         No term or condition set forth in this letter may be modified, waived
or discharged unless such waiver, modification or discharge is agreed to in
writing and signed by you and the Chief Executive Officer of Safeguard or
another duly authorized officer of Safeguard.

         You acknowledge that the arrangements described in this letter will be
the only obligations of Safeguard or its affiliates in connection with the
termination of your employment relationship with Safeguard. This letter does not
terminate, alter, or affect your rights under any plan or program of Safeguard
in which you may participate, except as explicitly set forth herein. Your
participation in such plans or programs will be governed by the terms of such
plans and programs.

         This agreement will be construed and enforced in accordance with the
law of the Commonwealth of Pennsylvania without regard to the conflicts of laws
rules 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 Philadelphia,
Pennsylvania, 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.

         The obligations of Safeguard set forth in this letter are absolute and
unconditional and will not be subject to any right of set-off, counterclaim,
recoupment, defense, or other right which Safeguard may have against you,
subject to, in the event of your termination of employment, your execution of
the relevant release of claims against Safeguard in the form attached to this
letter.
<PAGE>
                                                                             -4-

         Safeguard may withhold applicable taxes and other legally required
deductions from all payments to be made hereunder.

         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,

                                         /s/ N. Jeffrey Klauder
                                         -----------------------------------
                                         Safeguard Scientifics, Inc.
                                         By: N. Jeffrey Klauder
                                         Title: Executive Vice President
                                         and General Counsel

I agree to the terms and conditions of this letter:

/s/ Gerald A. Blitstein
------------------------------
Gerald A. Blitstein<PAGE>
                                                                   Exhibit 10.13

                                                       August 28, 2001

Mr. Christopher J. Davis
7 Melissa Way
Plymouth Meeting, PA  19462

Dear Mr. Davis:

         Safeguard Scientifics, Inc. ("Safeguard") considers it essential to the
best interests of its stockholders to attract and foster the continuous
employment of key management personnel of Safeguard.

         To further such interests and in connection with your appointment as an
Executive Vice President to act as Chief Financial Officer, Safeguard will
provide you the benefits set forth in this letter in the event your employment
with Safeguard is involuntarily terminated without cause or you terminate your
employment with Safeguard for good reason within 12 months from the hire date of
a new Chief Executive Officer. Such benefits will be provided in accordance with
the terms and conditions of this letter.

         Subject to the terms and conditions of this letter, in the event
Safeguard involuntarily terminates your employment without cause, or you
terminate your employment with good reason, prior to the first anniversary
hereof or, if later, the first anniversary of the hire date of a new Chief
Executive Officer, Safeguard will provide you the following benefits which shall
be the only severance benefits or other payments in respect of your employment
with Safeguard to which you shall be entitled. Without limiting the generality
of the foregoing, these benefits are in respect of all salary, accrued vacation
and other rights which you may have against Safeguard or its affiliates.

     -   You will receive a lump sum payment equal to the product of (i) 1.5
         multiplied by (ii) the sum of your annual base salary (of at least
         $310,000) plus your annual base bonus (calculated at 70 percent of
         annual base salary).

     -   You will become vested in all stock options granted to you and may
         exercise those stock options during the 36-month period following your
         termination of employment (unless any of the options would by their
         terms expire sooner, in which case you may exercise such options at any
         time before their expiration).
<PAGE>
     -   Vesting of your interest in the various LTIPs in which you participate
         will cease on the date of termination of your employment and you will
         receive benefits under the various LTIP's in accordance with the terms
         and conditions of such plans.

     -   You will receive up to 18-month's continued coverage under Safeguard's
         medical and health plans and life insurance plans; coverage will end if
         you obtain coverage from a subsequent employer. You should consult with
         Safeguard's Manager of Human Resources concerning the process for
         assuming ownership of and continued premium payments for any whole life
         policy at the end of such 18 month period.

     -   You will receive up to $1,500 a month for up to 12 months for
         outplacement services or office space which you secure.

     -   You will be reimbursed promptly for all your reasonable and necessary
         business expenses incurred on behalf of Safeguard prior to your
         termination date.

         All compensation and benefits described above will be contingent on
your execution of a release of all claims against Safeguard substantially in the
form attached to this letter.

         Safeguard will pay you the lump sum payments described above within
five business days of the date on which the release you execute becomes
effective. (Safeguard will prepare the final release (which will be
substantially in the form attached as Exhibit A to this letter) within five
business days of your termination of employment. You will have 21 days in which
to consider the release although you may execute it sooner. Please note that the
release has a recission period of seven days.) All other payments will be made
to you within five business days of the date on which they become due or, in the
case of payments payable on notice from you, within five business days of such
notice.

         Safeguard will pay interest on late payments at the prime rate at
Safeguard's agent bank plus 2 percent compounded monthly. In addition, Safeguard
will pay all reasonable costs and expenses (including reasonable attorney's fees
and all costs of arbitration) incurred by you to enforce this agreement or any
obligation hereunder.

         In this letter, the term "cause" means (a) your failure to adhere to
any written Safeguard policy if you have been given a reasonable opportunity to
comply with such policy or cure your failure to comply (which reasonable
opportunity must be granted during the ten-day period preceding termination of
this Agreement); (b) your appropriation (or attempted appropriation) of a
material business opportunity of Safeguard, including attempting to secure or
securing
<PAGE>
any personal profit in connection with any transaction entered into on behalf of
Safeguard; (c) your misappropriation (or attempted misappropriation) of any of
Safeguard's funds or property; or (d) your conviction of, indictment for (or its
procedural equivalent), or your 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 (a) (i) your assignment
(without your consent) to a position, title, responsibilities, or duties of a
materially lesser status or degree of responsibility than your current position,
responsibilities, or duties; provided, however, that if you are removed from
your position as Chief Financial Officer but retain your title as Executive Vice
President and are appointed to a position as Chairman of the Operations
Committee (or similar position) or Vice Chairman of the Operations Committee (if
the Chair is William Stallkamp) then such removal shall not be considered to
constitute "good reason", or (ii) a reduction of your base salary; (b) the
relocation of Safeguard's principal executive offices to a location which is
more 30 miles outside of center city Philadelphia; or (c) your assignment
(without your consent) to be based anywhere other than Safeguard's principal
executive offices.

         The agreement will inure to the benefit of your personal
representatives, executors, and heirs. In the event you die while any amount
payable under this agreement remains unpaid, all such amounts will be paid in
accordance with the terms and conditions of this letter.

         No term or condition set forth in this letter may be modified, waived
or discharged unless such waiver, modification or discharge is agreed to in
writing and signed by you and the Chief Executive Officer of Safeguard or
another duly authorized officer of Safeguard.

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

         You acknowledge that the arrangements described in this letter will be
the only obligations of Safeguard or its affiliates in connection with any
determination by Safeguard to terminate your employment with Safeguard. This
letter does not terminate, alter, or affect your rights under any plan or
program of Safeguard in which you may participate, except as explicitly set
forth herein. Your participation in such plans or programs will be governed by
the terms of such plans and programs.

         This agreement will be construed and enforced in accordance with the
law of the Commonwealth of Pennsylvania without regard to the conflicts of laws
rules of any state.
<PAGE>
         Any controversy or claim arising out of or relating to this agreement,
or the breach thereof, will be settled by arbitration in Philadelphia,
Pennsylvania, 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.

         The obligations of Safeguard set forth in this letter are absolute and
unconditional and will not be subject to any right of set-off, counterclaim,
recoupment, defense, or other right which Safeguard may have against you,
subject to, in the event of your termination of employment, your execution of
the relevant release of claims against Safeguard in the form attached to this
letter.

         Safeguard may withhold applicable taxes and other legally required
deductions from all payments to be made hereunder.

         Safeguard's obligations to make payments under this letter are unfunded
and unsecured and will be paid out of the general assets of Safeguard.

         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,

                                              /s/ Vincent G. Bell, Jr.
                                              Safeguard Scientifics, Inc.
                                              By: Vincent G. Bell, Jr.
                                              Title: Acting CEO

I agree to the terms and conditions of this letter

/s/ Christopher J. Davis
Christopher J. Davis

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]