Document:

SECURITY
      AGREEMENT

     

    1. Identification.

    

    This
      Security Agreement (the "Agreement"), dated as of September 12, 2007, is entered
      into by and between Pay88, Inc., a Nevada corporation ("Parent"), Chongqing
      Qianbao Technology Ltd., a People’s Republic of China corporation ("Guarantor"
      and together with Parent, each a “Debtor” and collectively the "Debtors"),
      and Barbara R. Mittman as collateral agent acting in the manner and to
      the extent described in the Collateral Agent Agreement defined below (the
      "Collateral Agent"), for the benefit of the parties identified on Schedule
      A
      hereto
      (collectively, the "Lenders").

    

    2. Recitals.

    

    2.1 The
      Lenders have made, are making and will be making loans to Parent (the "Loans").
      It is beneficial to each Debtor that the Loans were made and are being
      made.

    

    2.2 The
      Loans
      are and will be evidenced by certain promissory notes (each a “Note”) issued by
      Parent on or about the date of and after the date of this Agreement pursuant
      to
      subscription agreements (each a “Subscription Agreement”) to which Parent and
      Lenders are parties. The Notes are further identified on Schedule A hereto
      and
      were and will be executed by Parent as “Borrower” or “Debtor” for the benefit of
      each Lender as the “Holder” or “Lender” thereof.

    

    2.3 In
      consideration of the Loans made and to be made by Lenders to Parent and for
      other good and valuable consideration, and as security for the performance
      by
      Parent of its obligations under the Notes and as security for the repayment
      of
      the Loans and all other sums due from Debtors to Lenders arising under the
      Transaction Documents (as defined in the Subscription Agreement), and any other
      agreement between or among them (collectively, the "Obligations"), each Debtor,
      for good and valuable consideration, receipt of which is acknowledged, has
      agreed to grant to the Collateral Agent, for the benefit of the Lenders, a
      security interest in the Collateral (as such term is hereinafter defined),
      on
      the terms and conditions hereinafter set forth. Obligations include all future
      advances by Lenders to Debtor made pursuant to the Subscription
      Agreement.

    

    2.4 The
      Lenders have appointed the Collateral Agent pursuant to that certain Collateral
      Agent Agreement dated at or about the date of this Agreement (“Collateral Agent
      Agreement”), among the Lenders and Collateral Agent.

    

    2.5 The
      following defined terms which are defined in the Uniform Commercial Code in
      effect in the State of New York on the date hereof are used herein as so
      defined: Accounts, Chattel Paper, Documents, Equipment, General Intangibles,
      Instruments, Inventory and Proceeds. Other capitalized terms employed herein
      shall have the meanings attributed to them in the Subscription
      Agreement.

    

    3. Grant
      of General Security Interest in Collateral.

    

    3.1  As
      security for the Obligations of Debtors, each Debtor hereby grants the
      Collateral Agent, for the benefit of the Lenders, a security interest in the
      Collateral.

    

    3.2  “Collateral”
      shall mean all of the following property of Debtors:

    

    (A) All
      now
      owned and hereafter acquired right, title and interest of Debtors in, to and
      in
      respect of all Accounts, Goods, real or personal property, all present and
      future books and records relating to the foregoing and all products and Proceeds
      of the foregoing, and as set forth below:

     

    
      
        
        

      

      
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    (i) All
      now
      owned and hereafter acquired right, title and interest of Debtors in, to and
      in
      respect of all: Accounts, interests in goods represented by Accounts, returned,
      reclaimed or repossessed goods with respect thereto and rights as an unpaid
      vendor; contract rights; Chattel Paper; investment property; General Intangibles
      (including but not limited to, tax and duty claims and refunds, registered
      and
      unregistered patents (including but not limited to the patents, patents pending
      and applications set forth on Schedule
      B
      hereto),
      trademarks, service marks, certificates, copyrights trade names, applications
      for the foregoing, trade secrets, goodwill, processes, drawings, blueprints,
      customer lists, licenses, whether as licensor or licensee, chooses in action
      and
      other claims, and existing and future leasehold interests in equipment, real
      estate and fixtures); Documents; Instruments; letters of credit, bankers’
acceptances or guaranties; cash moneys, deposits; securities, bank accounts,
      deposit accounts, credits and other property now or hereafter owned or held
      in
      any capacity by Debtors, as well as agreements or property securing or relating
      to any of the items referred to above;

    

    (ii) Goods:
      All now
      owned and hereafter acquired right, title and interest of Debtors in, to and
      in
      respect of goods, including, but not limited to:

    

    (a) All
      Inventory, wherever located, whether now owned or hereafter acquired, of
      whatever kind, nature or description, including all raw materials,
      work-in-process, finished goods, and materials to be used or consumed in
      Debtors’ business; finished goods, timber cut or to be cut, oil, gas,
      hydrocarbons, and minerals extracted or to be extracted, and all names or marks
      affixed to or to be affixed thereto for purposes of selling same by the seller,
      manufacturer, lessor or licensor thereof and all Inventory which may be returned
      to any Debtor by its customers or repossessed by any Debtor and all of Debtors’
right, title and interest in and to the foregoing (including all of a Debtor’s
      rights as a seller of goods);

    

    (b) All
      Equipment and fixtures, wherever located, whether now owned or hereafter
      acquired, including, without limitation, all machinery, furniture and fixtures,
      and any and all additions, substitutions, replacements (including spare parts),
      and accessions thereof and thereto (including, but not limited to Debtors’
rights to acquire any of the foregoing, whether by exercise of a purchase option
      or otherwise);

    

    (iii) Property:
      All now
      owned and hereafter acquired right, title and interests of Debtors in, to and
      in
      respect of any other personal property in or upon which a Debtor has or may
      hereafter have a security interest, lien or right of setoff; 

    

    (iv) Books
      and Records:
      All
      present and future books and records relating to any of the above including,
      without limitation, all computer programs, printed output and computer readable
      data in the possession or control of the Debtors, any computer service bureau
      or
      other third party; and

    

    (v) Products
      and Proceeds:
      All
      products and Proceeds of the foregoing in whatever form and wherever located,
      including, without limitation, all insurance proceeds and all claims against
      third parties for loss or destruction of or damage to any of the
      foregoing.

    

    (B) All
      now
      owned and hereafter acquired right, title and interest of Debtors in, to and
      in
      respect of the following:

    

    (i) the
      shares of stock of the Guarantor, which the Debtor represents constitute 100%
      of
      the equity ownership interest in the Guarantor, the certificates representing
      such shares together with an executed stock power, and other rights, contractual
      or otherwise, in respect thereof and all dividends, distributions, cash,
      instruments, investment property and other property from time to time received,
      receivable or otherwise distributed in respect of or in exchange for any or
      all
      of such shares;

     

    
      
        
        

      

      
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    (ii) all
      additional shares of stock, partnership interests, member interests or other
      equity interests from time to time acquired by Debtor, in any Subsidiary (as
      defined in the Subscription Agreement) not a Subsidiary of the Debtor on the
      date hereof (“Future Subsidiaries”), the certificates representing such
      additional shares, and other rights, contractual or otherwise, in respect
      thereof and all dividends, distributions, cash, instruments, investment property
      and other property from time to time received, receivable or otherwise
      distributed in respect of or in exchange for any or all of such additional
      shares, interests or equity; and 

    

    (iii) all
      security entitlements of Debtor in, and all Proceeds of any and all of the
      foregoing in each case, whether now owned or hereafter acquired by Debtor and
      howsoever its interest therein may arise or appear (whether by ownership,
      security interest, lien, claim or otherwise).

    

    3.3 The
      Collateral Agent is hereby specifically authorized, after the Maturity Date
      (defined in the Notes) accelerated, or after the occurrence of an Event of
      Default (as defined herein) and the expiration of any applicable cure period,
      to
      transfer any Collateral into the name of the Collateral Agent and to take any
      and all action deemed advisable to the Collateral Agent to remove any transfer
      restrictions affecting the Collateral.

    

    4. Perfection
      of Security Interest.

    

    4.1 Each
      Debtor shall prepare, execute and deliver to the Collateral Agent UCC-1
      Financing Statements. The Collateral Agent is instructed to prepare and file
      at
      each Debtor’s cost and expense, financing statements in such jurisdictions
      deemed advisable to the Collateral Agent, including but not limited to the
      State
      of Nevada. The Financing Statements are deemed to have been filed for the
      benefit of the Collateral Agent and Lenders identified on Schedule A
      hereto.

    

    4.2 Upon
      the
      execution of this Agreement, Parent shall deliver to Collateral Agent stock
      certificates representing all of the shares of outstanding capital stock of
      the
      Guarantor (the "Securities"). All such certificates shall be held by or on
      behalf of Collateral Agent pursuant hereto and shall be delivered in suitable
      form for transfer by delivery, or shall be accompanied by duly executed
      instruments of transfer or assignment or undated stock powers executed in blank,
      all in form and substance satisfactory to Collateral Agent. 

     

    4.3 
      All
      other certificates and instruments constituting Collateral from time to time
      required to be pledged to Collateral Agent pursuant to the terms hereof (the
      "Additional Collateral") shall be delivered to Collateral Agent promptly upon
      receipt thereof by or on behalf of Debtors. All such certificates and
      instruments shall be held by or on behalf of Collateral Agent pursuant hereto
      and shall be delivered in suitable form for transfer by delivery, or shall
      be
      accompanied by duly executed instruments of transfer or assignment or undated
      stock powers executed in blank, all in form and substance satisfactory to
      Collateral Agent. If any Collateral consists of uncertificated securities,
      unless the immediately following sentence is applicable thereto, Debtors shall
      cause Collateral Agent (or its custodian, nominee or other designee) to become
      the registered holder thereof, or cause each issuer of such securities to agree
      that it will comply with instructions originated by Collateral Agent with
      respect to such securities without further consent by Debtors. If any Collateral
      consists of security entitlements, Debtors shall transfer such security
      entitlements to Collateral Agent (or its custodian, nominee or other designee)
      or cause the applicable securities intermediary to agree that it will comply
      with entitlement orders by Collateral Agent without further consent by Debtors.
      

     

    
      
        
        

      

      
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    4.4 Within
      five (5) days after the receipt by a Debtor of any Additional Collateral, a
      Pledge Amendment, duly executed by such Debtor, in substantially the form of
      Annex I hereto (a "Pledge Amendment"), shall be delivered to Collateral Agent
      in
      respect of the Additional Collateral to be pledged pursuant to this Agreement.
      Each Debtor hereby authorizes Collateral Agent to attach each Pledge Amendment
      to this Agreement and agrees that all certificates or instruments listed on
      any
      Pledge Amendment delivered to Collateral Agent shall for all purposes hereunder
      constitute Collateral.

     

    4.5 If
      Debtor
      shall receive, by virtue of Debtor being or having been an owner of any
      Collateral, any (i) stock certificate (including, without limitation, any
      certificate representing a stock dividend or distribution in connection with
      any
      increase or reduction of capital, reclassification, merger, consolidation,
      sale
      of assets, combination of shares, stock split, spin-off or split-off),
      promissory note or other instrument, (ii) option or right, whether as an
      addition to, substitution for, or in exchange for, any Collateral, or otherwise,
      (iii) dividends payable in cash (except such dividends permitted to be retained
      by Debtor pursuant to Section 5.2 hereof) or in securities or other property
      or
      (iv) dividends or other distributions in connection with a partial or total
      liquidation or dissolution or in connection with a reduction of capital, capital
      surplus or paid-in surplus, Debtor shall receive such stock certificate,
      promissory note, instrument, option, right, payment or distribution in trust
      for
      the benefit of Collateral Agent, shall segregate it from Debtor's other property
      and shall deliver it forthwith to Collateral Agent, in the exact form received,
      with any necessary endorsement and/or appropriate stock powers duly executed
      in
      blank, to be held by Collateral Agent as Collateral and as further collateral
      security for the Obligations.

    

    5. Distribution.

    

    5.1 So
      long
      as an Event of Default does not exist, Debtors shall be entitled to exercise
      all
      voting power pertaining to any of the Collateral, provided such exercise is
      not
      contrary to the interests of the Lenders and does not impair the
      Collateral.

    

    5.2. At
      any
      time an Event of Default exists or has occurred and is continuing, all rights
      of
      Debtors, upon notice given by Collateral Agent, to exercise the voting power
      and
      receive payments, which it would otherwise be entitled to pursuant to Section
      5.1, shall cease and all such rights shall thereupon become vested in Collateral
      Agent, which shall thereupon have the sole right to exercise such voting power
      and receive such payments.

    

    5.3 All
      dividends, distributions, interest and other payments which are received by
      Debtors contrary to the provisions of Section 5.2 shall be received in trust
      for
      the benefit of Collateral Agent as security and Collateral for payment of the
      Obligations shall be segregated from other funds of Debtors, and shall be
      forthwith paid over to Collateral Agent as Collateral in the exact form received
      with any necessary endorsement and/or appropriate stock powers duly executed
      in
      blank, to be held by Collateral Agent as Collateral and as further collateral
      security for the Obligations.

    

    6. Further
      Action By Debtors; Covenants and Warranties.

     

    
      
        
        

      

      
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    6.1 Collateral
      Agent at all times shall have a perfected security interest in the Collateral.
      Each Debtor represents that it has and will continue to have full title to
      the
      Collateral free from any liens, leases, encumbrances, judgments or other claims.
      The Collateral Agent's security interest in the Collateral constitutes and
      will
      continue to constitute a first, prior and indefeasible security interest in
      favor of Collateral Agent, subject only to the security interests described
      on
Schedule
      6.1.
      Each
      Debtor will do all acts and things, and will execute and file all instruments
      (including, but not limited to, security agreements, financing statements,
      continuation statements, etc.) reasonably requested by Collateral Agent to
      establish, maintain and continue the perfected security interest of Collateral
      Agent in the perfected Collateral, and will promptly on demand, pay all costs
      and expenses of filing and recording, including the costs of any searches
      reasonably deemed necessary by Collateral Agent from time to time to establish
      and determine the validity and the continuing priority of the security interest
      of Collateral Agent, and also pay all other claims and charges that, in the
      opinion of Collateral Agent, exercised in good faith, are reasonably likely
      to
      materially prejudice, imperil or otherwise affect the Collateral or Collateral
      Agent’s or Lenders’ security interests therein.

    

    6.2 Except
      in
      connection with sales of Collateral, in the ordinary course of business, for
      fair value and in cash, and except for Collateral which is substituted by assets
      of identical or greater value (with the consent of the Collateral Agent) or
      which is inconsequential in value, each Debtor will not sell, transfer, assign
      or pledge those items of Collateral (or allow any such items to be sold,
      transferred, assigned or pledged), without the prior written consent of
      Collateral Agent other than a transfer of the Collateral to a wholly-owned
      United States formed and located subsidiary or to another Debtor on prior notice
      to Collateral Agent, and provided the Collateral remains subject to the security
      interest herein described. Although Proceeds of Collateral are covered by this
      Agreement, this shall not be construed to mean that Collateral Agent consents
      to
      any sale of the Collateral, except as provided herein. Sales of Collateral
      in
      the ordinary course of business shall be free of the security interest of
      Lenders and Collateral Agent and Lenders and Collateral Agent shall promptly
      execute such documents (including without limitation releases and termination
      statements) as may be required by Debtors to evidence or effectuate the
      same.

    

    6.3 Each
      Debtor will, at all reasonable times during regular business hours and upon
      reasonable notice, allow Collateral Agent or its representatives free and
      complete access to the Collateral and all of such Debtor's records which in
      any
      way relate to the Collateral, for such inspection and examination as Collateral
      Agent reasonably deems necessary.

    

    6.4 Each
      Debtor, at its sole cost and expense, will protect and defend this Security
      Agreement, all of the rights of Collateral Agent and Lenders hereunder, and
      the
      Collateral against the claims and demands of all other persons.

    

    6.5 Debtors
      will promptly notify Collateral Agent of any levy, distraint or other seizure
      by
      legal process or otherwise of any part of the Collateral, and of any threatened
      or filed claims or proceedings that are reasonably likely to affect or impair
      any of the rights of Collateral Agent under this Security Agreement in any
      material respect.

    

    6.6 Each
      Debtor, at its own expense, will obtain and maintain in force insurance policies
      covering losses or damage to those items of Collateral which constitute physical
      personal property, which insurance shall be of the types customarily insured
      against by companies in the same or similar business, similarly situated, in
      such amounts (with such deductible amounts) as is customary for such companies
      under the same or similar circumstances, similarly situated. Debtors shall
      make
      the Collateral Agent a loss payee thereon to the extent of its interest in
      the
      Collateral. Collateral Agent is hereby irrevocably (until the Obligations are
      paid in full) appointed each Debtor’s attorney-in-fact to endorse any check or
      draft that may be payable to such Debtor so that Collateral Agent may collect
      the proceeds payable for any loss under such insurance. The proceeds of such
      insurance, less any costs and expenses incurred or paid by Collateral Agent
      in
      the collection thereof, shall be applied either toward the cost of the repair
      or
      replacement of the items damaged or destroyed, or on account of any sums secured
      hereby, whether or not then due or payable.

     

    
      
        
        

      

      
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    6.7 Collateral
      Agent may, at its option, and without any obligation to do so, pay, perform
      and
      discharge any and all amounts, costs, expenses and liabilities herein agreed
      to
      be paid or performed by Debtor upon
      Debtor’s
      failure
      to do
      so. All
      amounts expended by Collateral Agent in so doing shall become part of the
      Obligations secured hereby, and shall be immediately due and payable by Debtor
      to Collateral Agent upon demand
      and
      shall
      bear interest at the lesser of 15% per annum or the highest legal amount from
      the dates of such expenditures until paid.

    

    6.8 Upon
      the
      request of Collateral Agent, Debtors will furnish to Collateral Agent within
      five (5) business days thereafter, or to any proposed assignee of this Security
      Agreement, a written statement in form reasonably satisfactory to Collateral
      Agent, duly acknowledged, certifying the amount of the principal and interest
      and any other sum then owing under the Obligations, whether to its knowledge
      any
      claims, offsets or defenses exist against the Obligations or against this
      Security Agreement, or any of the terms and provisions of any other agreement
      of
      Debtors securing the Obligations. In connection with any assignment by
      Collateral Agent of this Security Agreement, each Debtor hereby agrees to cause
      the insurance policies required hereby to be carried by such Debtor, if any,
      to
      be endorsed in form satisfactory to Collateral Agent or to such assignee, with
      loss payable clauses in favor of such assignee, and to cause such endorsements
      to be delivered to Collateral Agent within ten (10) calendar days after request
      therefor by Collateral Agent.

    

    6.9 Each
      Debtor will, at its own expense, make, execute, endorse, acknowledge, file
      and/or deliver to the Collateral Agent from time to time such vouchers,
      invoices, schedules, confirmatory assignments, conveyances, financing
      statements, transfer endorsements, powers of attorney, certificates, reports
      and
      other reasonable assurances or instruments and take further steps relating
      to
      the Collateral and other property or rights covered by the security interest
      hereby granted, as the Collateral Agent may reasonably require to perfect its
      security interest hereunder.

    

    6.10 Debtors
      represent and warrant that they are the true and lawful exclusive owners of
      the
      Collateral, free and clear of any liens and encumbrances other than Permitted
      Liens.

    

    6.11 Each
      Debtor hereby agrees not to divest itself of any right under the Collateral
      except as permitted herein absent prior written approval of the Collateral
      Agent, except to a subsidiary organized and located in the United States on
      prior notice to Collateral Agent provided the Collateral remains subject to
      the
      security interest herein described.

     

    6.12 Each
      Debtor shall cause each Subsidiary of such Debtor in existence on the date
      hereof and each Subsidiary not in existence on the date hereof to execute and
      deliver to Collateral Agent promptly and in any event within 10 days after
      the
      formation, acquisition or change in status thereof (A) a guaranty guaranteeing
      the Obligations and (B) if requested by Collateral Agent, a security and pledge
      agreement substantially in the form of this Agreement together with (x)
      certificates evidencing all of the capital stock of each Subsidiary of and
      any
      entity owned by such Subsidiary, (y) undated stock powers executed in blank
      with
      signatures guaranteed, and (z) such opinion of counsel and such approving
      certificate of such Subsidiary as Collateral Agent may reasonably request in
      respect of complying with any legend on any such certificate or any other matter
      relating to such shares and (C) such other agreements, instruments, approvals,
      legal opinions or other documents reasonably requested by Collateral Agent
      in
      order to create, perfect, establish the first priority of or otherwise protect
      any lien purported to be covered by any such pledge and security agreement
      or
      otherwise to effect the intent that all property and assets of such Subsidiary
      shall become Collateral for the Obligations. For purposes of this Agreement,
      “Subsidiary”
means,
      with respect to any entity at any date, any corporation, limited or general
      partnership, limited liability company, trust, estate, association, joint
      venture or other business entity) of which more than 30% of (A) the
      outstanding capital stock having (in the absence of contingencies) ordinary
      voting power to elect a majority of the board of directors or other managing
      body of such entity, (B) in the case of a partnership or limited liability
      company, the interest in the capital or profits of such partnership or limited
      liability company or (C) in the case of a trust, estate, association, joint
      venture or other entity, the beneficial interest in such trust, estate,
      association or other entity business is, at the time of determination, owned
      or
      controlled directly or indirectly through one or more intermediaries, by such
      entity. Annex
      I annexed hereto contains a list of all Subsidiaries of the Debtors as of the
      date of this Agreement.

     

    
      
        
        

      

      
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7. Power
      of Attorney.

    

    At
      any
      time an Event of Default has occurred and is continuing, each Debtor hereby
      irrevocably constitutes and appoints the Collateral Agent as the true and lawful
      attorney of such Debtor, with full power of substitution, in the place and
      stead
      of such Debtor and in the name of such Debtor or otherwise, at any time or
      times, in the discretion of the Collateral Agent, to take any action and to
      execute any instrument or document which the Collateral Agent may deem necessary
      or advisable to accomplish the purposes of this Agreement. This power of
      attorney is coupled with an interest and is irrevocable until the Obligations
      are satisfied.

    

    8. Performance
      By The Collateral Agent.

    

    If
      a
      Debtor fails to perform any material covenant, agreement, duty or obligation
      of
      such Debtor under this Agreement, the Collateral Agent may, after any applicable
      cure period, at any time or times in its discretion, take action to effect
      performance of such obligation. All reasonable expenses of the Collateral Agent
      incurred in connection with the foregoing authorization shall be payable by
      Debtors as provided in Paragraph 12.1 hereof. No discretionary right, remedy
      or
      power granted to the Collateral Agent under any part of this Agreement shall
      be
      deemed to impose any obligation whatsoever on the Collateral Agent with respect
      thereto, such rights, remedies and powers being solely for the protection of
      the
      Collateral Agent.

    

    9. Event
      of Default.

    

    An
      event
      of default ("Event of Default") shall be deemed to have occurred hereunder
      upon
      the occurrence of any event of default as defined and described in this
      Agreement, in the Notes, the Subscription Agreement, and any other agreement
      to
      which one or more Debtors and a Lender are parties relating to the Offering.
      Upon and after any Event of Default, after the applicable cure period, if any,
      any or all of the Obligations shall become immediately due and payable at the
      option of the Collateral Agent, for the benefit of the Lenders, and the
      Collateral Agent may dispose of Collateral as provided below. A default by
      Debtor of any of its material obligations pursuant to this Agreement and any
      of
      the Transaction Documents (as defined in the Subscription Agreement) shall
      be an
      Event of Default hereunder and an “Event of Default” as defined in the Notes,
      and Subscription Agreement.

    

    10. Disposition
      of Collateral.

    

    Upon
      and
      after any Event of Default which is then continuing,

     

    
      
        
        

      

      
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    10.1 The
      Collateral Agent may exercise its rights with respect to each and every
      component of the Collateral, without regard to the existence of any other
      security or source of payment for the Obligations. In addition to other rights
      and remedies provided for herein or otherwise available to it, the Collateral
      Agent shall have all of the rights and remedies of a lender on default under
      the
      Uniform Commercial Code then in effect in the State of New York.

    

    10.2 If
      any
      notice to Debtors of the sale or other disposition of Collateral is required
      by
      then applicable law, five business (5) days prior written notice (which Debtors
      agree is reasonable notice within the meaning of Section 9.612(a) of the Uniform
      Commercial Code) shall be given to Debtors of the time and place of any sale
      of
      Collateral which Debtors hereby agree may be by private sale. The rights granted
      in this Section are in addition to any and all rights available to Collateral
      Agent under the Uniform Commercial Code.

    

    10.3 The
      Collateral Agent is authorized, at any such sale, if the Collateral Agent deems
      it advisable to do so, in order to comply with any applicable securities laws,
      to restrict the prospective bidders or purchasers to persons who will represent
      and agree, among other things, that they are purchasing the Collateral for
      their
      own account for investment, and not with a view to the distribution or resale
      thereof, or otherwise to restrict such sale in such other manner as the
      Collateral Agent deems advisable to ensure such compliance. Sales made subject
      to such restrictions shall be deemed to have been made in a commercially
      reasonable manner.

    

    10.4 All
      proceeds received by the Collateral Agent for the benefit of the Lenders in
      respect of any sale, collection or other enforcement or disposition of
      Collateral, shall be applied (after deduction of any amounts payable to the
      Collateral Agent pursuant to Paragraph 12.1 hereof) against the Obligations
      pro
      rata among the Lenders in proportion to their interests in the Obligations.
      Upon
      payment in full of all Obligations, Debtors shall be entitled to the return
      of
      all Collateral, including cash, which has not been used or applied toward the
      payment of Obligations or used or applied to any and all costs or expenses
      of
      the Collateral Agent incurred in connection with the liquidation of the
      Collateral (unless another person is legally entitled thereto). Any assignment
      of Collateral by the Collateral Agent to Debtors shall be without representation
      or warranty of any nature whatsoever and wholly without recourse. To the extent
      allowed by law, each Lender may purchase the Collateral and pay for such
      purchase by offsetting up to such Lender’s pro rata portion of the purchase
      price with sums owed to such Lender by Debtors arising under the Obligations
      or
      any other source.

    

    11. Waiver
      of Automatic Stay.
      Debtor
      acknowledges and agrees that should a proceeding under any bankruptcy or
      insolvency law be commenced by or against Debtor, or if any of the Collateral
      should become the subject of any bankruptcy or insolvency proceeding, then
      the
      Collateral Agent should be entitled to, among other relief to which the
      Collateral Agent or Lenders may be entitled under the Note, Subscription
      Agreement and any other agreement to which the Debtor, Lenders or Collateral
      Agent are parties, (collectively "Loan Documents") and/or applicable law, an
      order from the court granting immediate relief from the automatic stay pursuant
      to 11 U.S.C. Section 362 to permit the Collateral Agent to exercise all of
      its
      rights and remedies pursuant to the Loan Documents and/or applicable law. Debtor
      EXPRESSLY WAIVES THE BENEFIT OF THE AUTOMATIC STAY IMPOSED BY 11 U.S.C. SECTION
      362. FURTHERMORE, Debtor EXPRESSLY ACKNOWLEDGES AND AGREES THAT NEITHER 11
      U.S.C. SECTION 362 NOR ANY OTHER SECTION OF THE BANKRUPTCY CODE OR OTHER STATUTE
      OR RULE (INCLUDING, WITHOUT LIMITATION, 11 U.S.C. SECTION 105) SHALL STAY,
      INTERDICT, CONDITION, REDUCE OR INHIBIT IN ANY WAY THE ABILITY OF THE COLLATERAL
      AGENT TO ENFORCE ANY OF ITS RIGHTS AND REMEDIES UNDER THE LOAN DOCUMENTS AND/OR
      APPLICABLE LAW. Debtor hereby consents to any motion for relief from stay which
      may be filed by the Collateral Agent in any bankruptcy or insolvency proceeding
      initiated by or against Debtor, and further agrees not to file any opposition
      to
      any motion for relief from stay filed by the Collateral Agent. Debtor
      represents, acknowledges and agrees that this provision is a specific and
      material aspect of this Agreement, and that the Collateral Agent would not
      agree
      to the terms of this Agreement if this waiver were not a part of this Agreement.
      Debtor further represents, acknowledges and agrees that this waiver is
      knowingly, intelligently and voluntarily made, that neither the Collateral
      Agent
      nor any person acting on behalf of the Collateral Agent has made any
      representations to induce this waiver, that Debtor has been represented (or
      has
      had the opportunity to be represented) in the signing of this Agreement and
      in
      the making of this waiver by independent legal counsel selected by Debtor and
      that Debtor has had the opportunity to discuss this waiver with counsel. Debtor
      further agrees that any bankruptcy or insolvency proceeding initiated by Debtor
      will only be brought in the Federal Court within the Southern District of New
      York.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    12. Miscellaneous.

    

    12.1 Expenses.
      Debtors
      shall pay to the Collateral Agent, on demand, the amount of any and all
      reasonable expenses, including, without limitation, attorneys' fees, legal
      expenses and brokers' fees, which the Collateral Agent may incur in connection
      with (a) sale, collection or other enforcement or disposition of Collateral;
      (b)
      exercise or enforcement of any the rights, remedies or powers of the Collateral
      Agent hereunder or with respect to any or all of the Obligations upon breach
      or
      threatened breach; or (c) failure by Debtors to perform and observe any
      agreements of Debtors contained herein which are performed by the Collateral
      Agent.

    

    12.2 Waivers,
      Amendment and Remedies.
      No
      course of dealing by the Collateral Agent and no failure by the Collateral
      Agent
      to exercise, or delay by the Collateral Agent in exercising, any right, remedy
      or power hereunder shall operate as a waiver thereof, and no single or partial
      exercise thereof shall preclude any other or further exercise thereof or the
      exercise of any other right, remedy or power of the Collateral Agent. No
      amendment, modification or waiver of any provision of this Agreement and no
      consent to any departure by Debtors therefrom, shall, in any event, be effective
      unless contained in a writing signed by the Collateral Agent, and then such
      waiver or consent shall be effective only in the specific instance and for
      the
      specific purpose for which given. The rights, remedies and powers of the
      Collateral Agent, not only hereunder, but also under any instruments and
      agreements evidencing or securing the Obligations and under applicable law
      are
      cumulative, and may be exercised by the Collateral Agent from time to time
      in
      such order as the Collateral Agent may elect.

    

    12.3 Notices.
      All
      notices or other communications given or made hereunder shall be in writing
      and
      shall be personally delivered or deemed delivered the first business day after
      being faxed (provided that a copy is delivered by first class mail) to the
      party
      to receive the same at its address set forth below or to such other address
      as
      either party shall hereafter give to the other by notice duly made under this
      Section:

     

    
      	
              To
                Debtors:

            	
              Pay88,
                Inc.

            
	 	
              1053
                North Barnstead Road

            
	 	
              Barnstead,
                NH 03225

            
	 	
              Attn:
                Guo Fan, CEO and President

            
	 	
              Fax:
                (603) 776-6151

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    With
      a
      copy by telecopier only to:

    David
      Lubin & Associates

    26
      East
      Hawthorne Avenue

    Valley
      Stream, NY 11580

    Attn:
      David Lubin, Esq.

    Fax:
      (516) 887-8250

    

    To
      Lenders:   
To
      the
      addresses and telecopier numbers set forth

    on
      Schedule A 

    

    

    To
      the
      Collateral Agent:  

     

    

    If
      to
      Debtor, Lender or Collateral Agent,

    with
      a
      copy by telecopier only to:

    Grushko
      & Mittman, P.C.

    551
      Fifth
      Avenue, Suite 1601

    New
      York,
      New York 10176

    Fax:
      (212) 697-3575

    

    Any
      party
      may change its address by written notice in accordance with this
      paragraph.

    

    12.4 Term;
      Binding Effect.
      This
      Agreement shall (a) remain in full force and effect until payment and
      satisfaction in full of all of the Obligations; (b) be binding upon each Debtor,
      and its successors and permitted assigns; and (c) inure to the benefit of the
      Collateral Agent, for the benefit of the Lenders and their respective successors
      and assigns. 

    

    12.5 Captions.
      The
      captions of Paragraphs, Articles and Sections in this Agreement have been
      included for convenience of reference only, and shall not define or limit the
      provisions hereof and have no legal or other significance
      whatsoever.

    

    12.6 Governing
      Law; Venue; Severability.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York without
      regard to conflicts
      of laws principles
      that
      would result in the application of the substantive laws of another
      jurisdiction,
      except
      to the extent that the perfection of the security interest granted hereby in
      respect of any item of Collateral may be governed by the law of another
      jurisdiction. Any legal action or proceeding against a Debtor with respect
      to
      this Agreement may be brought in the courts in the State of New York or of
      the
      United
      States for the Southern District of New York, and, by execution and delivery
      of
      this Agreement, each Debtor hereby irrevocably accepts for itself and in respect
      of its property, generally and unconditionally, the jurisdiction of the
      aforesaid courts. Each Debtor hereby irrevocably waives any objection which
      they
      may now or hereafter have to the laying of venue of any of the aforesaid actions
      or proceedings arising out of or in connection with this Agreement brought
      in
      the aforesaid courts and hereby further irrevocably waives and agrees not to
      plead or claim in any such court that any such action or proceeding brought
      in
      any such court has been brought in an inconvenient forum. If any provision
      of
      this Agreement, or the application thereof to any person or circumstance, is
      held invalid, such invalidity shall not affect any other provisions which can
      be
      given effect without the invalid provision or application, and to this end
      the
      provisions hereof shall be severable and the remaining, valid provisions shall
      remain of full force and effect.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    12.7 Entire
      Agreement.
      This
      Agreement contains the entire agreement of the parties and supersedes all other
      agreements and understandings, oral or written, with respect to the matters
      contained herein.

    

    12.8 Counterparts/Execution.
      This
      Agreement may be executed in any number of counterparts and by the different
      signatories hereto on separate counterparts, each of which, when so executed,
      shall be deemed an original, but all such counterparts shall constitute but
      one
      and the same instrument. This Agreement may be executed by facsimile signature
      and delivered by facsimile transmission.

    

    13. Intercreditor
      Terms.
      As
      between the Lenders, any distribution under paragraph 10.4 shall be made
      proportionately based upon the remaining principal amount (plus accrued and
      unpaid interest) to each as to the total amount then owed to the Lenders as
      a
      whole. The rights of each Lender hereunder are pari
      passu
      to the
      rights of the other Lenders hereunder. Any recovery hereunder shall be shared
      ratably among the Lenders according to the then remaining principal amount
      owed
      to each (plus accrued and unpaid interest) as to the total amount then owed
      to
      the Lenders as a whole. 

    

    14. Termination;
      Release.
      When
      the Obligations have been indefeasibly paid and performed in full or
      all
      outstanding Convertible Notes have been converted to common stock pursuant
      to
      the terms of the Convertible Notes and the Subscription Agreements,
      this
      Agreement shall terminated, and the Collateral Agent, at the request and sole
      expense of the Debtors, will execute and deliver to the Debtors the proper
      instruments (including UCC termination statements) acknowledging the termination
      of the Security Agreement, and duly assign, transfer and deliver to the Debtors,
      without recourse, representation or warranty of any kind whatsoever, such of
      the
      Collateral, including, without limitation, Securities and any Additional
      Collateral, as may be in the possession of the Collateral Agent.

    

    15. Collateral
      Agent.

    

    15.1 Collateral
      Agent Powers.
      The
      powers conferred on the Collateral Agent hereunder are solely to protect its
      interest (on behalf of the Lenders) in the Collateral and shall not impose
      any
      duty on it to exercise any such powers.

    

    15.2 Reasonable
      Care.
      The
      Collateral Agent is required to exercise reasonable care in the custody and
      preservation of any Collateral in its possession; provided, however, that the
      Collateral Agent shall be deemed to have exercised reasonable care in the
      custody and preservation of any of the Collateral if it takes such action for
      that purposes as any owner thereof reasonably requests in writing at times
      other
      than upon the occurrence and during the continuance of any Event of Default,
      but
      failure of the Collateral Agent, to comply with any such request at any time
      shall not in itself be deemed a failure to exercise reasonable
      care.

    

    [THIS
      SPACE INTENTIONALLY LEFT BLANK]

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
    

    
      IN
        WITNESS WHEREOF, the
        undersigned have executed and delivered this Security Agreement, as of the
        date
        first written above.

       

       

      
        	
                “DEBTOR”

                PAY88, INC.

                a Nevada corporation

              	
                “SUBSIDIARY”

                CHONGQING QIANBAO TECHNOLOGY LTD.

                a People’s Republic of China
                  corporation

              
	 	 
	 	 
	By: /s/
                Guo
                Fan                               
                	By:
                /s/
                Tao
                Fan                               
                
	
                Name: Guo Fan

                Its: President and Chief Executive
                  Officer

              	
                Name: Tao Fan

                Its: Chief Executive Officer

              
	 	 
	 	 
	
                “THE
                  COLLATERAL AGENT”

                BARBARA
                  R. MITTMAN

              	 
	 	 
	 	 
	
                /s/
                  Barbara R.
                  Mittman            
                  

                Barbara
                  R. Mittman

              	 

      

       

      
        This
          Security Agreement may be signed by facsimile signature
          and

        delivered
          by confirmed facsimile transmission.

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      APPROVAL
        OF “LENDERS”:

      

      The
        undersigned Lenders instruct the Collateral Agent to enter into the foregoing
        Security Agreement among Pay88, Inc., Chongqink
        Qianbao Technology Ltd., and Collateral Agent.

       

      
         

        
          	
                  ALPHA CAPITAL ANSTALT

                	
                  WHALEHAVEN CAPITAL FUND LIMITED

                
	 	 
	 	 
	By:
                  /s/ Konrad
                  Ackerman	By:/s/
                  Brian Mazzella
	
                  Print Name of Signator: Konrad
                    Ackerman

                	
                  Print Name of Signator: Brian
                    Mazzella

                
	 	 
	
                   

                	 
	OSHER CAPITAL PARTNERS LLC	 
	 	 
	
                  By:
                    /s/ Yisroel Kluger

                	 
	Print Name of Signator: Yisroel
                  Kluger	 

        

      

      
 

      This
        Security Agreement may be signed by facsimile signature
        and

      delivered
        by confirmed facsimile transmission. 

       

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
 

    SCHEDULE
      A TO SECURITY AGREEMENT

    

    
      	
              LENDER

            	 	
              PRINCIPAL
                AMOUNT OF NOTE TO BE ISSUED ON THE INITIAL CLOSING
                DATE

            	 	
              PRINCIPAL
                AMOUNT OF NOTE TO BE ISSUED ON THE SECOND CLOSING
                DATE

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
 

    SCHEDULE
      B TO SECURITY AGREEMENT

    

    PATENTS,
      PATENTS PENDING, APPLICATIONS

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      6.1 TO SECURITY AGREEMENT

     

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    ANNEX
      I

     

    TO

     

    SECURITY
      AGREEMENT

     

    PLEDGE
      AMENDMENT

     

    This
      Pledge Amendment, dated _________ __ 200_, is delivered pursuant to Section
      4.3
      of the Security Agreement referred to below. The undersigned hereby agrees
      that
      this Pledge Amendment may be attached to the Security Agreement, dated September
      ___, 2007, as it may heretofore have been or hereafter may be amended, restated,
      supplemented or otherwise modified from time to time and that the shares listed
      on this Pledge Amendment shall be hereby pledged and assigned to Collateral
      Agent and become part of the Collateral referred to in such Security Agreement
      and shall secure all of the Obligations referred to in such Security
      Agreement.

     

    

    
      	
              Name
                of Issuer

            	 	
              Number

              of
                Shares

            	 	
              Class

            	 	
              Certificate

              Number(s)

            
	
              CHONGQINK
                QIANBAO TECHNOLOGY LTD.

            	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

     

    
      	 	 	 
	 	PAY88,
              INC.
	 
 	 
 	 
 
	
            	By:  	 
	 	
              

            
	 	
            

    

     

    
      
        
        

      

      
        17COLLATERAL
      AGENT AGREEMENT

    

    COLLATERAL
      AGENT AGREEMENT (this "Agreement")
      dated
      as of September 12, 2007, among Barbara R. Mittman (the "Collateral
      Agent"),
      and
      the parties identified on Schedule A hereto (each, individually, a "Lender"
      and
      collectively, the "Lenders"),
      who
      hold or will acquire promissory Notes issued or to be issued by Pay88, Inc.
      (“Parent”), a Nevada corporation, at or about the date of this Agreement and
      subsequent to the date of this Agreement as described in the Security Agreement
      referred to in Section 1(a) below (collectively herein the “Notes").

    

    WHEREAS,
      the Lenders have made, are making and will be making loans to Parent to be
      secured by certain collateral; and

    

    WHEREAS,
      it is desirable to provide for the orderly administration of such collateral
      by
      requiring each Lender to appoint the Collateral Agent, and the Collateral Agent
      has agreed to accept such appointment and to receive, hold and deliver such
      collateral, all upon the terms and subject to the conditions hereinafter set
      forth; and

    

    WHEREAS,
      it is desirable to allocate the enforcement of certain rights of the Lenders
      under the Notes for the orderly administration thereof.

    

    NOW,
      THEREFORE, in consideration of the premises set forth herein and for other
      good
      and valuable consideration, the parties hereto agree as follows:

    

    1. Collateral.

    

    (a) Contemporaneously
      with the execution and delivery of this Agreement by the Collateral Agent and
      the Lenders, (i) the Collateral Agent has or will have entered into Security
      Agreement among the Collateral Agent, Parent and Chongqink Qianbao Technology
      Ltd., a People’s Republic of China corporation (“Guarantor”) (the "Security
      Agreement"),
      regarding the grant of a security interest in the assets of Parent and Guarantor
      (such assets are referred to herein and in the Security Agreement as the
      "Collateral")
      to the
      Collateral Agent, for the benefit of the Lenders, (ii) Guarantor will have
      executed and delivered a “Subsidiary Guaranty” in favor of Lenders in connection
      with the Obligations (as defined in the Security Agreements), the principal
      officers of the Company (each a “Personal Guarantor”) will have given the
      personal guaranties to Lenders of the amounts payable in connection with the
      Notes m memorialized in a Personal Guaranty, and (iii) Parent is issuing the
      Notes to the Lenders pursuant to a “Subscription Agreement” dated at or about
      the date of this Agreement. Collectively, the Security Agreement, the Notes,
      Subsidiary Guaranty, Personal Guaranty and Subscription Agreement and other
      agreements referred to therein are referred to herein as "Borrower
      Documents".

    

    (b) The
      Collateral Agent hereby acknowledges that any Collateral held by the Collateral
      Agent is held for the benefit of the Lenders in accordance with this Agreement
      and the Borrower Documents. No reference to the Borrower Documents or any other
      instrument or document shall be deemed to incorporate any term or provision
      thereof into this Agreement unless expressly so provided.

    

    (c) The
      Collateral Agent is to distribute in accordance with the Borrower Documents
      any
      proceeds received from the Collateral which are distributable to the Lenders
      in
      proportion to their respective interests in the Obligations as defined in the
      Security Agreement.

    

    2. Appointment
      of the Collateral Agent.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    The
      Lenders hereby appoint the Collateral Agent (and the Collateral Agent hereby
      accepts such appointment) to take any action including, without limitation,
      the
      registration of any Collateral in the name of the Collateral Agent or its
      nominees prior to or during the continuance of an Event of Default (as defined
      in the Borrower Documents), the exercise of voting rights upon the occurrence
      and during the continuance of an Event of Default, the application of any cash
      collateral received by the Collateral Agent to the payment of the Obligations,
      the making of any demand under the Borrower Documents, the exercise of any
      remedies given to the Collateral Agent pursuant to the Borrower Documents and
      the exercise of any authority pursuant to the appointment of the Collateral
      Agent as an attorney-in-fact pursuant to the Security Agreement that the
      Collateral Agent deems necessary or proper for the administration of the
      Collateral pursuant to the Security Agreement. Upon disposition of the
      Collateral in accordance with the Borrower Documents, the Collateral Agent
      shall
      promptly distribute any cash or Collateral in accordance with Section 10.4
      of
      the Security Agreement. Parent and Lenders must notify Collateral Agent in
      writing of the issuance of Notes to Lenders by Parent. The Collateral Agent
      will
      not be required to act hereunder in connection with Notes the issuance of which
      was not disclosed in writing to the Collateral Agent nor will the Collateral
      Agent be required to act on behalf of any assignee of Notes without the written
      consent of Collateral Agent.

    

    3. Action
      by the Majority in Interest.

    

    (a) Certain
      Actions.
      Each of
      the Lenders covenants and agrees that only a Majority in Interest shall have
      the
      right, but not the obligation, to undertake the following actions (it being
      expressly understood that less than a Majority in Interest hereby expressly
      waive the following rights that they may otherwise have under the Borrower
      Documents):

    

    (i) Acceleration.
      If an
      Event of Default occurs, after the applicable cure period, if any, a Majority
      in
      Interest may, on behalf of all the Lenders, instruct the Collateral Agent to
      provide to Parent, Guarantor and Personal Guarantor notice to cure such default
      and/or declare the unpaid principal amount of the Notes to be due and payable,
      together with any and all accrued interest thereon and all costs payable
      pursuant to such Notes or in connection with the Borrower
      Documents;

    

    (ii) Enforcement.
      Upon
      the occurrence of any Event of Default after the applicable cure period, if
      any,
      a Majority in Interest may instruct the Collateral Agent to proceed to protect,
      exercise and enforce, on behalf of all the Lenders, their rights and remedies
      under the Borrower Documents, and such other rights and remedies as are provided
      by law or equity; and

    

    (iii) Waiver
      of Past Defaults.
      A
      Majority in Interest may instruct the Collateral Agent in writing to waive
      any
      Event of Default but not waive damages accrued or accruing until the effective
      date of such waiver.

    

    (b) Permitted
      Subordination and Release.
      A
      Majority in Interest may instruct the Collateral Agent to agree to release
      in
      whole or in part or to subordinate any Collateral to any claim or other actual
      or proposed security interest and may enter into any agreement with Parent
      and/or Guarantor to evidence such subordination; provided,
      however,
      that
      subsequent to any such release or subordination, each Note shall remain
pari passu
      with the
      other Notes held by the Lenders.

    

    (c) Further
      Actions.
      A
      Majority in Interest may instruct the Collateral Agent to take any action that
      it may take under this Agreement by instructing the Collateral Agent in writing
      to take such action on behalf of all the Lenders.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    (d) Majority
      in Interest.
      For so
      long as any obligations remain outstanding on the Notes, Majority in Interest
      for the purposes of this Agreement and the Borrower Documents shall mean Lenders
      who hold not less than seventy-five percent (75%) of the outstanding principal
      amount of the Notes. 

    

    4. Power
      of Attorney.

    

    (a) To
      effectuate the terms and provisions hereof, the Lenders hereby appoint the
      Collateral Agent as their attorney-in-fact (and the Collateral Agent hereby
      accepts such appointment) for the purpose of carrying out the provisions of
      this
      Agreement including, without limitation, taking any action on behalf of, or
      at
      the instruction of, the Majority in Interest at the written direction of the
      Majority in Interest and executing any consent authorized pursuant to this
      Agreement and taking any action and executing any instrument that the Collateral
      Agent may deem necessary or advisable (and lawful) to accomplish the purposes
      hereof.

    

    (b) All
      acts
      done under the foregoing authorization are hereby ratified and approved and
      neither the Collateral Agent nor any designee nor agent thereof shall be liable
      for any acts of commission or omission, for any error of judgment, for any
      mistake of fact or law except for acts of gross negligence or willful
      misconduct.

    

    (c) This
      power of attorney, being coupled with an interest, is irrevocable while this
      Agreement remains in effect.

    

    5. Expenses
      of the Collateral Agent.
      The
      Lenders shall pay any and all reasonable costs and expenses incurred by the
      Collateral Agent, including, without limitation, reasonable costs and expenses
      relating to all waivers, releases, discharges, satisfactions, modifications
      and
      amendments of this Agreement, the administration and holding of the Collateral,
      insurance expenses, and the enforcement, protection and adjudication of the
      parties' rights hereunder by the Collateral Agent, including, without
      limitation, the reasonable disbursements, expenses and fees of the attorneys
      the
      Collateral Agent may retain, if any, each of the foregoing in proportion to
      their holdings of the Notes.

    

    6. Reliance
      on Documents and Experts.
      The
      Collateral Agent shall be entitled to rely upon any notice, consent,
      certificate, affidavit, statement, paper, document, writing or communication
      (which may be by telegram, cable, telex, telecopier, or telephone) reasonably
      believed by it to be genuine and to have been signed, sent or made by the proper
      person or persons, and upon opinions and advice of its own legal counsel,
      independent public accountants and other experts selected by the Collateral
      Agent.

    

    7. Duties
      of the Collateral Agent; Standard of Care.

    

    (a) The
      Collateral Agent's only duties are those expressly set forth in this Agreement,
      and the Collateral Agent hereby is authorized to perform those duties in
      accordance with commercially reasonable practices. The Collateral Agent may
      exercise or otherwise enforce any of its rights, powers, privileges, remedies
      and interests under this Agreement and applicable law or perform any of its
      duties under this Agreement by or through its officers, employees, attorneys,
      or
      agents.

    

    (b) The
      Collateral Agent shall act in good faith and with that degree of care that
      an
      ordinarily prudent person in a like position would use under similar
      circumstances.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (c) Any
      funds
      held by the Collateral Agent hereunder need not be segregated from other funds
      except to the extent required by law. The Collateral Agent shall be under no
      liability for interest on any funds received by it hereunder.

    

    8. Resignation.
      The
      Collateral Agent may resign and be discharged of its duties hereunder at any
      time by giving written notice of such resignation to the other parties hereto,
      stating the date such resignation is to take effect. Within five (5) days of
      the
      giving of such notice, a successor collateral agent shall be appointed by the
      Majority in Interest; provided,
      however,
      that if
      the Lenders are unable so to agree upon a successor within such time period,
      and
      notify the Collateral Agent during such period of the identity of the successor
      collateral agent, the successor collateral agent may be a person designated
      by
      the Collateral Agent, and any and all fees of such successor collateral agent
      shall be the joint and several obligation of the Lenders. The Collateral Agent
      shall continue to serve until the effective date of the resignation or until
      its
      successor accepts the appointment and receives the Collateral held by the
      Collateral Agent but shall not be obligated to take any action hereunder. The
      Collateral Agent may deposit any Collateral with the Supreme Court of the State
      of New York for New York County or any such other court in New York State that
      accepts such Collateral.

    

    9. Exculpation.
      The
      Collateral Agent and its officers, employees, attorneys and agents, shall not
      incur any liability whatsoever for the holding or delivery of documents or
      the
      taking of any other action in accordance with the terms and provisions of this
      Agreement, for any mistake or error in judgment, for compliance with any
      applicable law or any attachment, order or other directive of any court or
      other
      authority (irrespective of any conflicting term or provision of this Agreement),
      or for any act or omission of any other person engaged by the Collateral Agent
      in connection with this Agreement, unless occasioned by the exculpated person's
      own gross negligence or willful misconduct; and each party hereto hereby waives
      any and all claims and actions whatsoever against the Collateral Agent and
      its
      officers, employees, attorneys and agents, arising out of or related directly
      or
      indirectly to any or all of the foregoing acts, omissions and circumstances.
      

    

    10. Indemnification.
      The
      Lenders hereby agree to indemnify, reimburse and hold harmless the Collateral
      Agent and its directors, officers, employees, attorneys and agents, jointly
      and
      severally, from and against any and all claims, liabilities, losses and expenses
      that may be imposed upon, incurred by, or asserted against any of them, arising
      out of or related directly or indirectly to this Agreement or the Collateral,
      except such as are occasioned by the indemnified person's own gross negligence
      or willful misconduct.

    

    11. Miscellaneous.

    

    (a) Rights
      and Remedies Not Waived.
      No act,
      omission or delay by the Collateral Agent shall constitute a waiver of the
      Collateral Agent's rights and remedies hereunder or otherwise. No single or
      partial waiver by the Collateral Agent of any default hereunder or right or
      remedy that it may have shall operate as a waiver of any other default, right
      or
      remedy or of the same default, right or remedy on a future
      occasion.

    

    (b) Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of New York without
      regard to conflicts
      of laws that
      would result
      in
      the application of the
      substantive laws of another
      jurisdiction.

    

    (c) Waiver
      of Jury Trial and Setoff; Consent to Jurisdiction; Etc.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    (i) In
      any
      litigation in any court with respect to, in connection with, or arising out
      of
      this Agreement or any instrument or document delivered pursuant to this
      Agreement, or the validity, protection, interpretation, collection or
      enforcement hereof or thereof, or any other claim or dispute howsoever arising,
      between the Collateral Agent and the Lenders or any Lender, then each Lender,
      to
      the fullest extent it may legally do so, (A) waives the right to interpose
      any
      setoff, recoupment, counterclaim or cross-claim in connection with any such
      litigation, irrespective of the nature of such setoff, recoupment, counterclaim
      or cross-claim, unless such setoff, recoupment, counterclaim or cross-claim
      could not, by reason of any applicable federal or state procedural laws, be
      interposed, pleaded or alleged in any other action; and (B) WAIVES
      TRIAL BY JURY IN CONNECTION WITH ANY SUCH LITIGATION AND ANY RIGHT IT MAY HAVE
      TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE
      OR
      CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
      DAMAGES. EACH LENDER AGREES THAT THIS SECTION 11(c) IS A SPECIFIC AND MATERIAL
      ASPECT OF THIS AGREEMENT AND ACKNOWLEDGE THAT THE COLLATERAL AGENT WOULD NOT
      ENTER THIS AGREEMENT IF THIS SECTION 11(c) WERE NOT PART OF THIS
      AGREEMENT.

    

    (ii) Each
      Lender irrevocably consents to the exclusive jurisdiction of any State or
      Federal Court located within the County of New York, State of New York, in
      connection with any action or proceeding arising out of or relating to this
      Agreement or any document or instrument delivered pursuant to this Agreement
      or
      otherwise. Each
      party hereby irrevocably waives personal service of process and consents to
      process being served in any suit, action or proceeding in connection with this
      Agreement or any other Transaction Document by mailing a copy thereof via
      registered or certified mail or overnight delivery (with evidence of delivery)
      to such party at the address in effect for notices to it under this Agreement
      and agrees that such service shall constitute good and sufficient service of
      process and notice thereof. Nothing contained herein shall be deemed to limit
      in
      any way any right to serve process in any other manner permitted by
      law.
      Each
      Lender hereby waives, to the fullest extent it may effectively do so, the
      defenses of forum non conveniens and improper venue.

    

    (d) Admissibility
      of this Agreement.
      Each of
      the Lenders agrees that any copy of this Agreement signed by it and transmitted
      by telecopier for delivery to the Collateral Agent shall be admissible in
      evidence as the original itself in any judicial or administrative proceeding,
      whether or not the original is in existence.

    

    (e) Address
      for Notices.
      Any
      notice or other communication under the provisions of this Agreement shall
      be
      given in writing and delivered in person, by reputable overnight courier or
      delivery service, by facsimile machine (receipt confirmed) with a copy sent
      by
      first class mail on the date of transmissions, or by registered or certified
      mail, return receipt requested, directed to such party’s addresses set forth
      below (or to any new address of which any party hereto shall have informed
      the
      others by the giving of notice in the manner provided herein):

    

    In
      the
      case of the Collateral Agent, to:

     

     

    In
      the case of the Lenders, to:

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    To
      the
      address and telecopier number set forth on 

    Schedule
      A hereto.

    

    In
      the
      case of Parent and Guarantor, to:

    Pay88,
      Inc.

    1053
      North Barnstead Road

    Barnstead,
      NH 03225

    Attn:
      Guo
      Fan, CEO and President

    Fax:
      (603) 776-6151

    

    With
      a
      copy by telecopier only to:

     

    David
      Lubin & Associates

    26
      East
      Hawthorne Avenue

    Valley
      Stream, NY 11580

    Attn:
      David Lubin, Esq.

    Fax:
      (516) 887-8250  

    

    If
      to
      Parent, Guarantor, Lender or Collateral Agent,

    with
      a
      copy by telecopier only to:

    

    Grushko
      & Mittman, P.C.

    551
      Fifth
      Avenue, Suite 1601

    New
      York,
      New York 10176

    Fax:
      (212) 697-3575

    

    (f) Amendments
      and Modification; Additional Lender.
      No
      provision hereof shall be modified, altered, waived or limited except by written
      instrument expressly referring to this Agreement and to such provision, and
      executed by the parties hereto. Any transferee of a Note who acquires a Note
      after the date hereof will become a party hereto by signing the signature page
      and sending an executed copy of this Agreement to the Collateral Agent and
      receiving a signed acknowledgement from the Collateral Agent.

    

    (g) Fee.
      Upon
      the occurrence of an Event of Default, the Lenders collectively shall pay the
      Collateral Agent the sum of $10,000 on account, to apply against an hourly
      fee
      of $350 to be paid to the Collateral Agent by the Lenders for services rendered
      pursuant to this Agreement. All payments due to the Collateral Agent under
      this
      Agreement including reimbursements must be paid when billed. The Collateral
      Agent may refuse to act on behalf of or make a distribution to any Lender who
      is
      not current in payments to the Collateral Agent. Payments required pursuant
      to
      this Agreement shall be pari passu
      to the
      Lenders' interests in the Notes. The Collateral Agent is hereby authorized
      to
      deduct any sums due the Collateral Agent from Collateral in the Collateral
      Agent's possession. Parent,
      Guarantor and Personal Guarantor agree to jointly and severally and promptly
      reimburse Lenders for all payments made by Lender to Collateral Agent hereunder.
      Failure to promptly reimburse Lenders is an Event of default under the
      Notes.

    

    (h) 
      Counterparts/Execution.
      This
      Agreement may be executed in any number of counterparts and by the different
      signatories hereto on separate counterparts, each of which, when so executed,
      shall be deemed an original, but all such counterparts shall constitute but
      one
      and the same instrument. This Agreement may be executed by facsimile signature
      and delivered by facsimile transmission.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (i) Successors
      and Assigns.
      Whenever in this Agreement reference is made to any party, such reference shall
      be deemed to include the successors, assigns, heirs and legal representatives
      of
      such party. No party hereto may transfer any rights under this Agreement, unless
      the transferee agrees to be bound by, and comply with all of the terms and
      provisions of this Agreement, as if an original signatory hereto on the date
      hereof.

    

    (j) Captions:
      Certain Definitions.
      The
      captions of the various sections and paragraphs of this Agreement have been
      inserted only for the purposes of convenience; such captions are not a part
      of
      this Agreement and shall not be deemed in any manner to modify, explain, enlarge
      or restrict any of the provisions of this Agreement. As used in this Agreement
      the term "person"
      shall
      mean and include an individual, a partnership, a joint venture, a corporation,
      a
      limited liability company, a trust, an unincorporated organization and a
      government or any department or agency thereof.

    

    (k) Severability.
      In the
      event that any term or provision of this Agreement shall be finally determined
      to be superseded, invalid, illegal or otherwise unenforceable pursuant to
      applicable law by an authority having jurisdiction and venue, that determination
      shall not impair or otherwise affect the validity, legality or enforceability
      (i) by or before that authority of the remaining terms and provisions of this
      Agreement, which shall be enforced as if the unenforceable term or provision
      were deleted, or (ii) by or before any other authority of any of the terms
      and
      provisions of this Agreement.

    

    (l) Entire
      Agreement.
      This
      Agreement contains the entire agreement of the parties and supersedes all other
      agreements and understandings, oral or written, with respect to the matters
      contained herein.

    

    (m) Schedules.
      The
      Collateral Agent is authorized to annex hereto any schedules referred to
      herein.

     

    [THIS
      SPACE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

      IN
        WITNESS WHEREOF, the parties hereto have caused this Collateral Agent Agreement
        to be signed, by their respective duly authorized officers or directly, as
        of
        the date first written above.

       

      

      “LENDERS”

       

       

      
        	ALPHA CAPITAL ANSTALT	WHALEHAVEN CAPITAL FUND LIMITED
	 	 
	 	 
	By: /s/ Konrad Ackerman	By: /s/ Brian Mazzella
	 	 
	Print Name of Signator: Konrad
                Ackerman	Print Name of Signator: Brian
                Mazzella
	 	 
	 	 
	OSHER CAPITAL PARTNERS LLC	 
	 	 
	 	 
	By: /s/ Yisroel Kluger	 
	 	 
	Print Name of Signator: Yisroel
                Kluger	 
	 	 
	 	 
	 	 /s/ Barbara R.
                Mittman                     
                
	 	BARBARA R. MITTMAN - Collateral
                Agent
	 	 
	Acknowledged and Agreed:	 
	 	 
	
                “PARENT”

                PAY88, INC.

                a Nevada corporation

              	
                “GUARANTOR”

                CHONGQINK QIANBAO TECHNOLOGY

                LTD. - a People’s Republic of China
                  corporation

              
	 	 
	By: /s/
                Guo
                Fan                            
                	By: /s/ Tao
                Fan                           
                
	
                Guo
                  Fan

              	
                Tao
                  Fan

              
	Its: President and Chief Executive
                Officer	Its:
                Chief Executive Officer
	 	 
	 	 
	 	 
	/s/ Guo
                Fan                                
                	/s/
                Tao
                Fan                                  
	Guo Fan	Tao
                Fan
	Personal Guarantor	Personal
                Guarantor

      

          

      This
        Collateral Agent Agreement may be signed
        by facsimile signature and delivered by confirmed facsimile
        transmission.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      

      IN
        WITNESS WHEREOF, the
        undersigned have executed and delivered this Guaranty, as of the date first
        written above.

      

      

      “GUARANTOR”

      CHONGQING
        QIANBAO TECHNOLOGY LTD.

      a
        People’s Republic of China corporation

      

      

      

      By:
        /s/
        Tao
        Fan                                     

      Tao
        Fan

      Its:
        Chief Executive Officer

      
 

      

      

      This
        Guaranty Agreement may be signed by facsimile signature
        and

      delivered
        by confirmed facsimile transmission.

      
 

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A TO COLLATERAL AGENT AGREEMENT

    

    
      	
              LENDER

            	 	
              PRINCIPAL
                AMOUNT OF NOTE TO BE ISSUED ON THE INITIAL CLOSING
                DATE

            	 	
              PRINCIPAL
                AMOUNT OF NOTE TO BE ISSUED ON THE SECOND CLOSING
                DATE

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    
      
        
        

      

      
        10

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