Safeguard Scientifics, Inc. (the "Company"), Safeguard Delaware, Inc. ("SDI"), Safeguard Delaware II, Inc. ("SDI II") and Safeguard Scientifics (Delaware), Inc. ("SSDI") (collectively, "Borrowers") have entered into a Third Loan Modification Agreement dated as of December 21, 2012 (the "Agreement") relating to the Amended and Restated Loan and Security Agreement dated as of May 27, 2009, by and among Silicon Valley Bank ("Bank) and Borrowers, as amended by a certain Joinder and First Loan and Modification Agreement, dated as of December 31, 2010, and as further amended by a certain Second Loan Modification Agreement dated as of April 29, 2011 (the "Loan Agreement"). SDI and SSDI are wholly owned subsidiaries of Safeguard, and SDI II is a wholly owned subsidiary of SDI. The Agreement extends the maturity date of the facility from December 31, 2012 to December 31, 2014. The Company paid a fee in the amount of 0.1% of the commitment amount. The other principal terms of the credit facility, including the $50 million credit availability, remain substantially the same as the terms contained in the Loan Agreement.

The information set forth above is qualified in its entirety by reference to the Agreement attached hereto as Exhibit 10.1, which exhibit is incorporated herein by reference.

(d) Exhibits.

10.1    Third Loan Modification Agreement dated as of December 21, 2012, by and
        among Silicon Valley Bank, Safeguard Scientifics, Inc., Safeguard
        Delaware, Inc., Safeguard Delaware II, Inc. and Safeguard Scientifics
        (Delaware), Inc.