Document:

Exhibit 10.4

                    INTELLECTUAL PROPERTY SECURITY AGREEMENT

           INTELLECTUAL PROPERTY SECURITY AGREEMENT (this "Agreement" dated as
of December 13, 2006, by and among MSGI Security Solutions, Inc., a
Nevada corporation (the "Company"), the subsidiaries of the Company listed on
the signature pages hereto and the secured parties signatory hereto and their
respective endorsees, transferees and assigns (collectively, the "Secured
Party").

                              W I T N E S S E T H :

         WHEREAS, pursuant to a Securities Purchase Agreement, dated the date
hereof, between Company and the Secured Party (the "Purchase Agreement"),
Company has agreed to issue to the Secured Party and the Secured Party has
agreed to purchase from Company certain of Company's 6% Callable Secured
Convertible Notes, due three years from the date of issue (the "Notes"), which
are convertible into shares of Company's Common Stock, par value $.01 per share
(the "Common Stock"). In connection therewith, Company shall issue the Secured
Party certain Common Stock purchase warrants (the "Warrants"); and

         WHEREAS, in order to induce the Secured Party to purchase the Notes,
Company has agreed to execute and deliver to the Secured Party this Agreement
for the benefit of the Secured Party and to grant to it a first priority
security interest in certain Intellectual Property (defined below) of Company to
secure the prompt payment, performance and discharge in full of all of Company's
obligations under the Notes and exercise and discharge in full of Company's
obligations under the Warrants; and

         NOW, THEREFORE, in consideration of the agreements herein contained and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as follows:

                1.      Defined Terms. Unless otherwise defined herein, terms
which are defined in the Purchase Agreement and used herein are so used
as so defined; and the following terms shall have the following meanings:

                        "Software Intellectual Property" shall mean:

                        (a) all software programs (including all source code,
object code and all related applications and data files), whether now
owned, licensed or leased or hereafter acquired by the Company, above;

                        (b) all computers and electronic data processing
hardware and firmware associated therewith;

                        (c) all documentation (including flow charts, logic
diagrams, manuals, guides and specifications) with respect to such
software, hardware and firmware described in the preceding clauses (a) and (b);
and

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                        (d) all rights with respect to all of the foregoing,
including, without limitation, any and all upgrades, modifications,
copyrights, licenses, options, warranties, service contracts, program services,
test rights, maintenance rights, support rights, improvement rights, renewal
rights and indemnifications and substitutions, replacements, additions, or model
conversions of any of the foregoing.

                        "Copyrights" shall mean (a) all copyrights,
registrations and applications for registration owned by the
Company, issued or filed, including any reissues, extensions or renewals
thereof, by or with the United States Copyright Office or any similar office or
agency of the United States, any state thereof, or any other country or
political subdivision thereof, or otherwise, including, all rights in and to the
material constituting the subject matter thereof, including, without limitation,
any referred to in Schedule B hereto, and (b) any rights owned by the Company in
any material which is copyrightable or which is protected by common law, United
States copyright laws or similar laws or any law of any State, including,
without limitation, any thereof referred to in Schedule B hereto.

                        "Copyright License" shall mean any written agreement,
providing for a grant by the Company of any right in any Copyright,
including, without limitation, any thereof referred to in Schedule B hereto.

                        "Intellectual Property" shall mean, collectively, the
Software Intellectual Property, Copyrights, Copyright Licenses,
Patents, Patent Licenses, Trademarks, Trademark Licenses and Trade Secrets.

                        "Obligations" shall mean all of the Company's
obligations under this Agreement, the Notes and the Warrants, in each
case, whether now or hereafter existing, voluntary or involuntary, direct or
indirect, absolute or contingent, liquidated or unliquidated, whether or not
jointly owed with others, and whether or not from time to time decreased or
extinguished and later decreased, created or incurred, and all or any portion of
such obligations or liabilities that are paid, to the extent all or any part of
such payment is avoided or recovered directly or indirectly from the Secured
Party as a preference, fraudulent transfer or otherwise as such obligations may
be amended, supplemented, converted, extended or modified from time to time.

                        "Patents" shall mean (a) all letters patent of the
United States or any other country or any political
subdivision thereof owned by the Company, and all reissues and extensions
thereof, including, without limitation, any thereof referred to in Schedule B
hereto, and (b) all applications for letters patent of the United States and all
divisions, continuations and continuations-in-part thereof or any other country
or any political subdivision, including, without limitation, any thereof
referred to in Schedule B hereto.

                        "Patent License" shall mean all written agreements,
providing for the grant by the Company of any right to
manufacture, use or sell any invention covered by a Patent, including, without
limitation, any thereof referred to in Schedule B hereto.

                        "Security Agreement" shall mean the Security
Agreement, dated the date hereof between Company and the
Secured Party.

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                        "Trademarks" shall mean (a) all trademarks, trade
names, corporate names, company names, business names, fictitious
business names, tradedress, service marks, logos and other source or business
identifiers, and the goodwill associated therewith, now existing or hereafter
adopted or acquired, all registrations and recordings thereof, and all
applications in connection therewith, whether in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any
state thereof or any other country or any political subdivision thereof, or
otherwise, owned by the Company, including, without limitation, any thereof
referred to in Schedule B hereto, and (b) all reissues, extensions or renewals
thereof.

                        "Trademark License" shall mean any written agreement,
providing for the grant by the Company of any right to use any
Trademark, including, without limitation, any thereof referred to in Schedule B
hereto.

                        "Trade Secrets" shall mean common law and statutory
trade secrets and all other confidential or proprietary information and
all know-how obtained by or used in or contemplated at any time for use in the
business of the Company (each of the foregoing being collectively called a
"Trade Secret"), whether or not such Trade Secret has been reduced to a writing
or other tangible form, all Trade Secret licenses, including each Trade Secret
license referred to in Schedule B hereto, and including the right to sue for and
to enjoin and to collect damages for the actual or threatened misappropriation
of any Trade Secret and for the breach or enforcement of any such Trade Secret
license.

                2.      Grant of Security Interest. In accordance with
Section 3(m) of the Security Agreement, to secure the complete and
timely payment, performance and discharge in full, as the case may be, of all of
the Obligations, the Company hereby, unconditionally and irrevocably, pledges,
grants and hypothecates to the Secured Party, a continuing security interest in,
a continuing first lien upon, and a right of set-off against, in each case to
the fullest extent permitted by law, all of the Company's right, title and
interest of whatsoever kind and nature in and to the Intellectual Property (the
"Security Interest").

                3.      Representations and Warranties. Except as otherwise
disclosed in the Company's filings with the Securities and Exchange
Commission, the Company hereby represents and warrants, and covenants and agrees
with, the Secured Party as follows:

                        (a)     Each of the Company and the Company's
subsidiaries has the requisite corporate power and authority to enter
into this Agreement and otherwise to carry out its obligations thereunder. The
execution, delivery and performance by the Company of this Agreement and the
filings contemplated therein have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company.
This Agreement constitutes a legal, valid and binding obligation of the Company
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors' rights generally.

                        (b) The Company is the sole owner of the Intellectual
Property (except for non-exclusive licenses granted by the Company in
the ordinary course of business), free and

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clear of any liens, security interests, encumbrances, rights or claims,
and is fully authorized to grant the Security Interest in and to pledge the
Intellectual Property. There is not on file in any governmental or regulatory
authority, agency or recording office an effective financing statement, security
agreement, license or transfer or any notice of any of the foregoing (other than
those that have been filed in favor of the Secured Party pursuant to this
Agreement) covering or affecting any of the Intellectual Property.

                        (c) Upon request of the Secured Party, the Company
shall execute and deliver any and all agreements, instruments,
documents, and papers as the Secured Party may request to evidence the Secured
Party's security interest in the Intellectual Property and the goodwill and
general intangibles of the Company relating thereto or represented thereby, and
the Company hereby appoints the Secured Party its attorney-in-fact to execute
and file all such writings for the foregoing purposes, all acts of such attorney
being hereby ratified and confirmed; such power being coupled with an interest
is irrevocable until the Obligations have been fully satisfied and are paid in
full.

                        (d) The execution, delivery and performance of this
Agreement does not conflict with or cause a breach or default, or an
event that with or without the passage of time or notice, shall constitute a
breach or default, under any agreement to which the Company is a party or by
which the Company is bound. No consent (including, without limitation, from
stock holders or creditors of the Company) is required for the Company to enter
into and perform its obligations hereunder.

                        (e) The Company shall at all times maintain the liens
and Security Interest provided for hereunder as valid and perfected
first priority liens and security interests in the Intellectual Property to the
extent they can be perfected by filing in favor of the Secured Party until this
Agreement and the Security Interest hereunder shall terminate pursuant to
Section 11. The Company shall safeguard and protect all Intellectual Property
for the account of the Secured Party. Without limiting the generality of the
foregoing, the Company shall pay all fees, taxes and other amounts necessary to
maintain the Intellectual Property and the Security Interest hereunder, and the
Company shall obtain and furnish to the Secured Party from time to time, upon
demand, such releases and/or subordinations of claims and liens which may be
required to maintain the priority of the Security Interest hereunder.

                        (f) The Company will not transfer, pledge, hypothecate,
encumber, license (except for in the ordinary course of business or in
connection with any receivables financing the Company or a subsidiary may
obtain), sell or otherwise dispose of any of the Intellectual Property without
the prior written consent of the Secured Party.

                        (g) The Company shall, within ten (10) days of
obtaining knowledge thereof, advise the Secured Party promptly, in
sufficient detail, of any substantial change in the Intellectual Property, and
of the occurrence of any event which would have a material adverse effect on the
value of the Intellectual Property or on the Secured Party's security interest
therein.

                        (h) The Company shall permit the Secured Party and its
representatives and agents to inspect the Intellectual Property at any
time, and to make copies of

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records pertaining to the Intellectual Property as may be requested by
the Secured Party from time to time.

                        (i) The Company will take all steps reasonably
necessary to diligently pursue and seek to preserve, enforce and
collect any rights, claims, causes of action and accounts receivable in respect
of the Intellectual Property.

                        (j) The Company shall promptly notify the Secured Party
in sufficient detail upon becoming aware of any attachment,
garnishment, execution or other legal process levied against any Intellectual
Property and of any other information received by the Company that may
materially affect the value of the Intellectual Property, the Security Interest
or the rights and remedies of the Secured Party hereunder.

                        (k) All information heretofore, herein or hereafter
supplied to the Secured Party by or on behalf of the Company with
respect to the Intellectual Property is accurate and complete in all material
respects as of the date furnished.

                        (l) Schedule A attached hereto contains a list of all
of the subsidiaries of the Company.

                        (m) Schedule B attached hereto includes all Licenses,
and all Patents and Patent Licenses, if any, owned by the Company in
its own name as of the date hereof. Schedule B hereto includes all Trademarks
and Trademark Licenses, if any, owned by the Company in its own name as of the
date hereof. Schedule B hereto includes all Copyrights and Copyright Licenses,
if any, owned by the Company in its own name as of the date hereof. Schedule B
hereto includes all Trade Secrets and Trade Secret Licenses, if any, owned by
the Company as of the date hereof. To the Company's knowledge, each License,
Patent, Trademark, Copyright and Trade Secret is valid, subsisting, unexpired,
enforceable and has not been abandoned. Except as set forth in Schedule B, none
of such Licenses, Patents, Trademarks, Copyrights and Trade Secrets is the
subject of any licensing or franchise agreement. To the Company's knowledge, no
holding, decision or judgment has been rendered by any Governmental Body which
would limit, cancel or question the validity of any License, Patent, Trademark,
Copyright and Trade Secrets . No action or proceeding is pending (i) seeking to
limit, cancel or question the validity of any License, Patent, Trademark,
Copyright or Trade Secret, or (ii) which, if adversely determined, would have a
material adverse effect on the value of any License, Patent, Trademark,
Copyright or Trade Secret. The Company has used and will continue to use for the
duration of this Agreement, proper statutory notice in connection with its use
of the Patents, Trademarks and Copyrights and consistent standards of quality in
products leased or sold under the Patents, Trademarks and Copyrights.

                       (n) With respect to any Intellectual Property:

                           (i)      such Intellectual Property is subsisting and
                                    has not been adjudged invalid or
                                    unenforceable, in whole or in part;

                           (ii)     such Intellectual Property is valid and
                                    enforceable;

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                           (iii)    the Company has made all necessary filings
                                    and recordations to protect its interest in
                                    such Intellectual Property, including,
                                    without limitation, recordations of all of
                                    its interests in the Patents, Patent
                                    Licenses, Trademarks in the United States
                                    Patent and Trademark Office and in
                                    corresponding offices throughout the world
                                    and its claims to the Copyrights in the
                                    United States Copyright Office and in
                                    corresponding offices throughout the world
                                    (as applicable);

                           (iv)     other than as set forth in Schedule B, the
                                    Company is the exclusive owner of the entire
                                    and unencumbered right, title and interest
                                    in and to such Intellectual Property and as
                                    of the date hereof no claim has been made
                                    that the use of such Intellectual Property
                                    infringes on the asserted rights of any
                                    third party; and

                           (v)      the Company has performed and will continue
                                    to perform all acts and has paid all
                                    required fees and taxes to maintain each and
                                    every item of Intellectual Property in full
                                    force and effect throughout the world, as
                                    applicable.

                        (o) Except with respect to any Trademark or Copyright
that the Company shall reasonably determine is of negligible economic
value to the Company, the Company shall:

                  (i) maintain each Trademark and Copyright in full force free
         from any claim of abandonment for non-use, maintain as in the past the
         quality of products and services offered under such Trademark or
         Copyright; employ such Trademark or Copyright with the appropriate
         notice of registration; not adopt or use any mark which is confusingly
         similar or a colorable imitation of such Trademark or Copyright unless
         the Secured Party shall obtain a perfected security interest in such
         mark pursuant to this Agreement; and not (and not permit any licensee
         or sublicensee thereof to) do any act or knowingly omit to do any act
         whereby any Trademark or Copyright may become invalidated;

                  (ii) not, except with respect to any Patent that it shall
         reasonably determine is of negligible economic value to it, do any act,
         or omit to do any act, whereby any Patent may become abandoned; and

                  (iii) notify the Secured Party immediately if it knows, or has
         reason to know, that any application or registration relating to any
         Patent, Trademark or Copyright may become abandoned, or of any adverse
         determination or development (including, without limitation, the
         institution of, or any such determination or development in, any
         proceeding in the United States Patent and Trademark Office, United
         States Copyright Office or any court or tribunal in any country)
         regarding its

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         ownership of any Patent, Trademark or Copyright or its
         right to register the same or to keep and maintain the same.

                        (p) Whenever the Company, either by itself or through
any agent, employee, licensee or designee, shall file an application
for the registration of any Patent, Trademark or Copyright with the United
States Patent and Trademark Office, United States Copyright Office or any
similar office or agency in any other country or any political subdivision
thereof or acquire rights to any new Patent, Trademark or Copyright whether or
not registered, report such filing to the Secured Party within five business
days after the last day of the fiscal quarter in which such filing occurs.

                        (q) The Company shall take all reasonable and necessary
steps, including, without limitation, in any proceeding before the
United States Patent and Trademark Office, United States Copyright Office or any
similar office or agency in any other country or any political subdivision
thereof, to maintain and pursue each application (and to obtain the relevant
registration) and to maintain each registration of the Patents, Trademarks and
Copyrights, including, without limitation, filing of applications for renewal,
affidavits of use and affidavits of incontestability.

                        (r) In the event that any Patent, Trademark or
Copyright included in the Intellectual Property is infringed,
misappropriated or diluted by a third party, the Company shall promptly notify
the Secured Party after it learns thereof and shall, unless it shall reasonably
determine that such Patent, Trademark or Copyright is of negligible economic
value to it, which determination it shall promptly report to the Secured Party,
promptly sue for infringement, misappropriation or dilution, to seek injunctive
relief where appropriate and to recover any and all damages for such
infringement, misappropriation or dilution, or take such other actions as it
shall reasonably deem appropriate under the circumstances to protect such
Patent, Trademark or Copyright. If the Company lacks the financial resources to
comply with this Section 3(t), the Company shall so notify the Secured Party and
shall cooperate fully with any enforcement action undertaken by the Secured
Party on behalf of the Company.

         4.     Defaults. The following events shall be "Events of Default":

                (a) The occurrence of an Event of Default (as defined in the
Notes) under the Notes;

                (b) Any representation or warranty of the Company in this
Agreement or in the Security Agreement shall prove to have been
incorrect in any material respect when made;

                (c) The failure by the Company to make reasonable efforts to
observe or perform any of its obligations hereunder or in the Security
Agreement within ten (10) days after receipt by the Company of notice of such
failure from the Secured Party; and

                (d) Any breach of, or default under, the Warranties that is
not cured within sixty (60) days following the notice from the Secured
Party of such breach or default.

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         5.     Duty To Hold In Trust. Upon the occurrence of any Event of
Default and at any time thereafter, the Company shall, upon receipt by
it of any revenue, income or other sums subject to the Security Interest,
whether payable pursuant to the Notes or otherwise, or of any check, draft,
note, trade acceptance or other instrument evidencing an obligation to pay any
such sum, hold the same in trust for the Secured Party and shall forthwith
endorse and transfer any such sums or instruments, or both, to the Secured Party
for application to the satisfaction of the Obligations.

         6.     Rights and Remedies Upon Default. Upon occurrence of any Event
of Default and at any time thereafter, the Secured Party shall have the
right to exercise all of the remedies conferred hereunder and under the Notes,
and the Secured Party shall have all the rights and remedies of a secured party
under the UCC and/or any other applicable law (including the Uniform Commercial
Code of any jurisdiction in which any Intellectual Property is then located).
Without limitation, the Secured Party shall have the following rights and
powers:

                (a) The Secured Party shall have the right to take possession
of the Intellectual Property and, for that purpose, enter, with the aid
and assistance of any person, any premises where the Intellectual Property, or
any part thereof, is or may be placed and remove the same, and the Company shall
assemble the Intellectual Property and make it available to the Secured Party at
places which the Secured Party shall reasonably select, whether at the Company's
premises or elsewhere, and make available to the Secured Party, without rent,
all of the Company's respective premises and facilities for the purpose of the
Secured Party taking possession of, removing or putting the Intellectual
Property in saleable or disposable form.

                (b) The Secured Party shall have the right to operate the
business of the Company using the Intellectual Property and shall have
the right to assign, sell, lease or otherwise dispose of and deliver all or any
part of the Intellectual Property, at public or private sale or otherwise,
either with or without special conditions or stipulations, for cash or on credit
or for future delivery, in such parcel or parcels and at such time or times and
at such place or places, and upon such terms and conditions as the Secured Party
may deem commercially reasonable, all without (except as shall be required by
applicable statute and cannot be waived) advertisement or demand upon or notice
to the Company or right of redemption of the Company, which are hereby expressly
waived. Upon each such sale, lease, assignment or other transfer of Intellectual
Property, the Secured Party may, unless prohibited by applicable law which
cannot be waived, purchase all or any part of the Intellectual Property being
sold, free from and discharged of all trusts, claims, right of redemption and
equities of the Company, which are hereby waived and released.

         7. Applications of Proceeds. The proceeds of any such sale, lease or
other disposition of the Intellectual Property hereunder or from payments made
on account of any insurance policy insuring any portion of the Intellectual
Property shall be applied first, to the expenses of retaking, holding, storing,
processing and preparing for sale, selling, and the like (including, without
limitation, any taxes, fees and other costs incurred in connection therewith) of
the Intellectual Property, to the reasonable attorneys' fees and expenses
incurred by the applicable Secured Party in enforcing the Secured Party's rights
hereunder and in connection with collecting, storing and disposing of the
Intellectual Property, and then to satisfaction of the Obligations pro rata
among each Secured Party (based on then-outstanding principal amounts of

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Notes at the time of any such determination), and to the payment of any
other amounts required by applicable law, after which the Secured Party shall
pay to the Company any surplus proceeds. If, upon the sale, license or other
disposition of the Intellectual Property, the proceeds thereof are insufficient
to pay all amounts to which the Secured Party is legally entitled, the Company
will be liable for the deficiency, together with interest thereon, at the rate
of 15% per annum or the lesser amount permitted by applicable law (the "Default
Rate"), and the reasonable fees of any attorneys employed by the Secured Party
to collect such deficiency. To the extent permitted by applicable law, the
Intellectual Property waives all claims, damages and demands against the Secured
Party arising out of the repossession, removal, retention or sale of the
Intellectual Property, unless due solely to the gross negligence or willful
misconduct of the Secured Party as determined by a final judgment (not subject
to further appeal) of a court of competent jurisdiction.

         8. Costs and Expenses. The Company agrees to pay all reasonable
out-of-pocket fees, costs and expenses incurred in connection with any filing
required hereunder, including without limitation, any financing statements,
continuation statements, partial releases and/or termination statements related
thereto or any expenses of any searches reasonably required by the Secured
Party.

         9. Responsibility for Intellectual Property. The Company assumes all
liabilities and responsibility in connection with all Intellectual Property, and
the obligations of the Company hereunder or under the Notes and the Warrants
shall in no way be affected or diminished by reason of the loss, destruction,
damage or theft of any of the Intellectual Property or its unavailability for
any reason.

         10. Security Interest Absolute. All rights of the Secured Party and all
Obligations of the Company hereunder, shall be absolute and unconditional,
irrespective of: (a) any lack of validity or enforceability of this Agreement,
the Notes, the Warrants or any agreement entered into in connection with the
foregoing, or any portion hereof or thereof; (b) any change in the time, manner
or place of payment or performance of, or in any other term of, all or any of
the Obligations, or any other amendment or waiver of or any consent to any
departure from the Notes, the Warrants or any other agreement entered into in
connection with the foregoing; (c) any exchange, release or nonperfection of any
of the Intellectual Property, or any release or amendment or waiver of or
consent to departure from any other Intellectual Property for, or any guaranty,
or any other security, for all or any of the Obligations; (d) any action by the
Secured Party to obtain, adjust, settle and cancel in its sole discretion any
insurance claims or matters made or arising in connection with the Intellectual
Property; or (e) any other circumstance which might otherwise constitute any
legal or equitable defense available to the Company, or a discharge of all or
any part of the Security Interest granted hereby. Until the Obligations shall
have been paid and performed in full, the rights of the Secured Party shall
continue even if the Obligations are barred for any reason, including, without
limitation, the running of the statute of limitations or bankruptcy. The Company
expressly waives presentment, protest, notice of protest, demand, notice of
nonpayment and demand for performance. In the event that at any time any
transfer of any Intellectual Property or any payment received by the Secured
Party hereunder shall be deemed by final order of a court of competent
jurisdiction to have been a voidable preference or fraudulent conveyance under
the bankruptcy or insolvency laws of the United States, or shall be deemed to be
otherwise due to any party other than the

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Secured Party, then, in any such event, the Company's obligations
hereunder shall survive cancellation of this Agreement, and shall not be
discharged or satisfied by any prior payment thereof and/or cancellation of this
Agreement, but shall remain a valid and binding obligation enforceable in
accordance with the terms and provisions hereof. The Company waives all right to
require the Secured Party to proceed against any other person or to apply any
Intellectual Property which the Secured Party may hold at any time, or to
marshal assets, or to pursue any other remedy. The Company waives any defense
arising by reason of the application of the statute of limitations to any
obligation secured hereby.

         11. Term of Agreement. This Agreement and the Security Interest shall
terminate on the date on which all payments under the Notes have been made in
full and all other Obligations have been paid or discharged. Upon such
termination, the Secured Party, at the request and at the expense of the
Company, will join in executing any termination statement with respect to any
financing statement executed and filed pursuant to this Agreement.

         12. Power of Attorney; Further Assurances.

             (a) The Company authorizes the Secured Party, and does hereby make,
constitute and appoint it, and its respective officers, agents, successors or
assigns with full power of substitution, as the Company's true and lawful
attorney-in-fact, with power, in its own name or in the name of the Company, to,
after the occurrence and during the continuance of an Event of Default, (i)
endorse any notes, checks, drafts, money orders, or other instruments of payment
(including payments payable under or in respect of any policy of insurance) in
respect of the Intellectual Property that may come into possession of the
Secured Party; (ii) to sign and endorse any UCC financing statement or any
invoice, freight or express bill, bill of lading, storage or warehouse receipts,
drafts against debtors, assignments, verifications and notices in connection
with accounts, and other documents relating to the Intellectual Property; (iii)
to pay or discharge taxes, liens, security interests or other encumbrances at
any time levied or placed on or threatened against the Intellectual Property;
(iv) to demand, collect, receipt for, compromise, settle and sue for monies due
in respect of the Intellectual Property; and (v) generally, to do, at the option
of the Secured Party, and at the Company's expense, at any time, or from time to
time, all acts and things which the Secured Party deems necessary to protect,
preserve and realize upon the Intellectual Property and the Security Interest
granted therein in order to effect the intent of this Agreement, the Notes and
the Warrants, all as fully and effectually as the Company might or could do; and
the Company hereby ratifies all that said attorney shall lawfully do or cause to
be done by virtue hereof. This power of attorney is coupled with an interest and
shall be irrevocable for the term of this Agreement and thereafter as long as
any of the Obligations shall be outstanding.

                (b) On a continuing basis, the Company will make, execute,
acknowledge, deliver, file and record, as the case may be, in the
proper filing and recording places in any jurisdiction, including, without
limitation, the jurisdictions indicated on Schedule C, attached hereto, all such
instruments, and take all such action as may reasonably be deemed necessary or
advisable, or as reasonably requested by the Secured Party, to perfect the
Security Interest granted hereunder and otherwise to carry out the intent and
purposes of this Agreement, or for assuring and confirming to the Secured Party
the grant or perfection of a security interest in all the Intellectual Property.

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                (c) The Company hereby irrevocably appoints the Secured Party
as the Company's attorney-in-fact, with full authority in the place and
stead of the Company and in the name of the Company, from time to time in the
Secured Party's discretion, to take any action and to execute any instrument
which the Secured Party may deem necessary or advisable to accomplish the
purposes of this Agreement, including the filing, in its sole discretion, of one
or more financing or continuation statements and amendments thereto, relative to
any of the Intellectual Property without the signature of the Company where
permitted by law.

         13. Notices. All notices, requests, demands and other communications
hereunder shall be in writing, with copies to all the other parties hereto, and
shall be deemed to have been duly given when (i) if delivered by hand, upon
receipt, (ii) if sent by facsimile, upon receipt of proof of sending thereof,
(iii) if sent by nationally recognized overnight delivery service (receipt
requested), the next business day or (iv) if mailed by first-class registered or
certified mail, return receipt requested, postage prepaid, four days after
posting in the U.S. mails, in each case if delivered to the following addresses:

         If to the Company:         MSGI Security Solutions, Inc.
                                    575 Madison Avenue
                                    New York, New York  10022
                                    Attention:  Chief Executive Officer
                                    Telephone:  (917) 339-7150
                                    Facsimile:  (917) 339-7166

         With copies to:            Greenberg Traurig, LLP
                                    200 Park Avenue
                                    New York, New York
                                    Attention:  Alan I. Annex, Esq.
                                    Telephone:  (212) 801-9200
                                    Facsimile:  (212) 801-6400

         If to the Secured Party:   To the address set forth immediately
                                    below such party's name on the signature
                                    pages to the Purchase Agreement.

         With copies to:            Ballard Spahr Andrews & Ingersoll, LLP
                                    1735 Market Street, 51st Floor
                                    Philadelphia, Pennsylvania  19103
                                    Attention:  Gerald J. Guarcini, Esquire
                                    Facsimile:  215-864-8999

         14. Other Security. To the extent that the Obligations are now or
hereafter secured by property other than the Intellectual Property or by the
guarantee, endorsement or property of any other person, firm, corporation or
other entity, then the Secured Party shall have the right, in its sole
discretion, to pursue, relinquish, subordinate, modify or take any other action
with respect thereto, without in any way modifying or affecting any of the
Secured Party's rights and remedies hereunder.

                                       11

<PAGE>

         15. Miscellaneous.

             (a) No course of dealing between the Company and the Secured
Party, nor any failure to exercise, nor any delay in exercising, on the
part of the Secured Party, any right, power or privilege hereunder or under the
Notes shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege hereunder or thereunder preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege.

             (b) All of the rights and remedies of the Secured Party with
respect to the Intellectual Property, whether established hereby or by
the Notes or by any other agreements, instruments or documents or by law shall
be cumulative and may be exercised singly or concurrently.

             (c) This Agreement and the Security Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof and is
intended to supersede all prior negotiations, understandings and agreements with
respect thereto. Except as specifically set forth in this Agreement, no
provision of this Agreement may be modified or amended except by a written
agreement specifically referring to this Agreement and signed by the parties
hereto.

             (d) In the event that any provision of this Agreement is held to be
invalid, prohibited or unenforceable in any jurisdiction for any reason, unless
such provision is narrowed by judicial construction, this Agreement shall, as to
such jurisdiction, be construed as if such invalid, prohibited or unenforceable
provision had been more narrowly drawn so as not to be invalid, prohibited or
unenforceable. If, notwithstanding the foregoing, any provision of this
Agreement is held to be invalid, prohibited or unenforceable in any
jurisdiction, such provision, as to such jurisdiction, shall be ineffective to
the extent of such invalidity, prohibition or unenforceability without
invalidating the remaining portion of such provision or the other provisions of
this Agreement and without affecting the validity or enforceability of such
provision or the other provisions of this Agreement in any other jurisdiction.

             (e) No waiver of any breach or default or any right under this
Agreement shall be considered valid unless in writing and signed by the party
giving such waiver, and no such waiver shall be deemed a waiver of any
subsequent breach or default or right, whether of the same or similar nature or
otherwise.

             (f) This Agreement shall be binding upon and inure to the benefit
of each party hereto and its successors and assigns.

             (g) Each party shall take such further action and execute and
deliver such further documents as may be necessary or appropriate in
order to carry out the provisions and purposes of this Agreement.

             (h) This Agreement shall be construed in accordance with the laws
of the State of New York, except to the extent the validity, perfection
or enforcement of a security interest hereunder in respect of any particular
Intellectual Property which are governed by a jurisdiction other than the State
of New York in which case such law shall govern. Each of the parties hereto
irrevocably submits to the exclusive jurisdiction of any New York State or
United States Federal court sitting in New York County over any action or
proceeding arising out of or

                                       12

<PAGE>

relating to this Agreement, and the parties hereto hereby irrevocably
agree that all claims in respect of such action or proceeding may be heard and
determined in such New York State or Federal court. The parties hereto agree
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. The parties hereto further waive any objection to venue
in the State of New York and any objection to an action or proceeding in the
State of New York on the basis of forum non conveniens.

             (i) EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL
ENCOMPASSING OF ANY DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO
THE SUBJECT MATER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL
INDUCEMENT FOR EACH PARTY TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY
HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH
PARTY WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.
EACH PARTY FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH
ITS LEGAL COUNSEL, AND THAT SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVED ITS
RIGHTS TO A JURY TRIAL FOLLOWING SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE,
MEANING THAT, NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT. IN THE EVENT OF A LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

             (j) This Agreement may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original and,
all of which taken together shall constitute one and the same Agreement. In the
event that any signature is delivered by facsimile transmission, such signature
shall create a valid binding obligation of the party executing (or on whose
behalf such signature is executed) the same with the same force and effect as if
such facsimile signature were the original thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       13

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed on the day and year first above written.

                          MSGI SECURITY SOLUTIONS, INC.

                          By:
                             --------------------------------------------
                             Jeremy Barbera
                             Chief Executive Officer

                          FUTURE DEVELOPMENTS AMERICA, INC.

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

                          INNALOGIC, LLC

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

                          MSGI ITALIA

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

                          AJW PARTNERS, LLC
                          By:  SMS Group, LLC

                          By:
                             --------------------------------------------
                             Corey S. Ribotsky
                             Manager

                          AJW OFFSHORE, LTD.
                          By:  First Street Manager II, LLC

                          By:
                             --------------------------------------------
                             Corey S. Ribotsky
                             Manager

                                       14

<PAGE>

                          AJW QUALIFIED PARTNERS, LLC
                          By:  AJW Manager, LLC

                          By:
                             --------------------------------------------
                             Corey S. Ribotsky
                             Manager

                          NEW MILLENNIUM CAPITAL
                          PARTNERS II, LLC
                          By:  First Street Manager II, LLC

                          By:
                             --------------------------------------------
                             Corey S. Ribotsky
                             Manager

                          ENABLE GROWTH PARTNERS L.P.

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

                          ENABLE OPPORTUNITY PARTNERS LP

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

                           PIERCE DIVERSIFIED STRATEGY MASTER FUND, ENA

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

                                       15Exhibit 10.5

                         MSGI SECURITY SOLUTIONS, INC.
                               575 MADISON AVENUE
                               NEW YORK, NY 10022

                                                               December 13, 2006

AJW Partners, LLC
AJW Offshore, Ltd.
AJW Qualified Partners, LLC
New Millennium Capital Partners II, LLC
1044 Northern Boulevard
Suite 302
Roslyn, New York  11576

         Re:      MSGI Security Solutions, Inc. (the "Company")

Ladies and Gentlemen:

         This letter sets forth the agreement of the Company and the investors
listed in the signature pages hereto (collectively, the "Investors") to: (i)
amend the conversion provisions of certain Callable Secured Convertible Notes,
as amended, which are convertible into shares of the Company's common stock, par
value $.01 per share (the "Common Stock"), previously issued by the Company to
the Investors (collectively, the "Convertible Notes"), as set forth on Schedule
1 hereto; (ii) extend the expiration dates and amend the exercise price of
certain warrants previously issued by the Company to the Investors in connection
with the issuance of the Convertible Notes and in a subsequent transaction in
June 2006 (collectively, the "Warrants"), as set forth on Schedule 1 hereto,
(iii) extend the maturity date of certain promissory notes previously issued by
the Company to the Investors (collectively, the "Promissory Notes"), (iv)
resolve certain other matters.

         By execution hereof, for good and valuable consideration the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree that:

         1.       The Convertible Notes shall no longer be subject to the
                  amortization provisions thereof, and such provisions shall be
                  deemed to be deleted.

         2.       Section 2.2 of each of the Convertible Notes shall be amended
                  and restated in its entirety as follows:

         "The Conversion Price shall be the Variable Conversion Price (as
         defined herein) (subject, in each case, to equitable adjustments for
         stock splits, stock dividends or rights offerings by the Borrower
         relating to the Borrower's securities or the securities of any
         subsidiary of the Borrower, combinations, recapitalization,

<PAGE>

         reclassifications, extraordinary distributions and similar events). The
         "Variable Conversion Price" shall mean the Applicable Percentage (as
         defined herein) multiplied by the Market Price (as defined herein).
         "Market Price" means the average of the lowest three (3) Trading Prices
         (as defined below) for the Common Stock during the twenty (20) Trading
         Day period ending one Trading Day prior to the date the Conversion
         Notice is sent by the Holder to the Borrower via facsimile (the
         "Conversion Date"). "Trading Price" means, for any security as of any
         date, the closing price on the Over-the-Counter Bulletin Board (the
         "OTCBB") as reported by a reliable reporting service ("Reporting
         Service") mutually acceptable to Borrower and Holder and hereafter
         designated by Holders of a majority in interest of the Notes and the
         Borrower or, if the OTCBB is not the principal trading market for such
         security, the closing price of such security on the principal
         securities exchange or trading market where such security is listed or
         traded or, if no closing price of such security is available in any of
         the foregoing manners, the average of the closing prices of any market
         makers for such security that are listed in the "pink sheets" by the
         National Quotation Bureau, Inc. If the Trading Price cannot be
         calculated for such security on such date in the manner provided above,
         the Trading Price shall be the fair market value as mutually determined
         by the Borrower and the holders of a majority in interest of the Notes
         being converted for which the calculation of the Trading Price is
         required in order to determine the Conversion Price of such Notes.
         "Trading Day" shall mean any day on which the Common Stock is traded
         for any period on the OTCBB, or on the principal securities exchange or
         other securities market on which the Common Stock is then being traded.
         "Applicable Percentage" shall mean 75%. Notwithstanding the foregoing,
         in no event will the Conversion Price be less than $.50."

         3.       The Maturity Date (as defined in the Convertible Notes) is
                  hereby extended to December 13, 2009.

         4.       The Warrants shall expire on the seventh (7th) anniversary of
                  their respective dates of issuance, as set forth on Schedule I
                  hereto.

         5.       The Exercise Price (as defined in the Warrants) is hereby
                  amended to be $1.00 per share.

         6.       The Maturity Date (as defined in the Promissory Notes) is
                  hereby extended to December 13, 2009.

         7.       The Investors hereby waive any and all defaults under the
                  Convertible Notes, the Promissory Notes and the Warrants
                  existing on the date hereof, provided that the Company shall
                  still be obligated to pay any interest on the Convertible
                  Notes and the Promissory Notes that has accrued through the
                  date hereof.

         8.       The Company acknowledges that the Investors are entering into
                  this letter based upon the understanding of the parties hereto
                  that the holding period of the Convertible Notes, as amended
                  pursuant to this letter, for purposes of Rule 144(d)

                                       2
<PAGE>

                  under the Securities Act of 1933, as amended, shall commence
                  on the original date of issuance of the Convertible Notes as
                  set forth on Schedule 1 hereto, and that the Company will use
                  its best efforts to deliver to the Investors unrestricted and
                  unlegended shares of Common Stock upon conversion of the
                  Convertible Notes, provided that the other requirements of
                  Rule 144 are satisfied.

         9.       The Convertible Notes, the Promissory Notes and the Warrants
                  are hereby amended in accordance with the foregoing
                  provisions. All other provisions of the Convertible Notes, the
                  Promissory Notes and the Warrants, as amended from time to
                  time, shall remain in full force and effect.

         10.      Upon the payment or conversion of at least $500,000 in
                  principal on the Convertible Notes and the Promissory Notes,
                  the investors will release the lien on Jeremy Barbera's shares
                  of Common Stock that have been pledged pursuant to that
                  certain Guaranty and Pledge Agreement dated as of January 19,
                  2006 by and among the Company and the Investors.

         The parties shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other parties hereto
may reasonably request in order to carry out the intent an accomplish the
purposes of this letter agreement, including without limitation the issuance of
amended Convertible Notes, Promissory Notes and Warrants.

                            [Signature Page Follows]

                                       3
<PAGE>

         Please signify your agreement with the foregoing by signing a copy of
this letter where indicated and returning it to the undersigned.

                                        Sincerely,

                                        MSGI SECURITY SOLUTIONS, INC.

                                        ----------------------------------------
                                        Jeremy Barbera
                                        Chief Executive Officer

ACCEPTED AND AGREED:

AJW PARTNERS, LLC.
By:  SMS GROUP, LLC

----------------------------------------
Corey S. Ribotsky, Manager

AJW OFFSHORE, LTD.
By:  FIRST STREET MANAGER II, LLC

----------------------------------------

Corey S. Ribotsky, Manager

AJW QUALIFIED PARTNERS, LLC
By: AJW MANAGER, LLC

----------------------------------------
Corey S. Ribotsky, Manager

NEW MILLENNIUM CAPITAL PARTNERS II, LLC
By:  FIRST STREET MANAGER II, LLC,

----------------------------------------
Corey S. Ribotsky, Manager

                                       4
<PAGE>

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