Document:

EXECUTION COPY

                                MERGER AGREEMENT

This Merger Agreement (this "Agreement") is entered into as of April 27, 2007 by
and among K2  Digital,  Inc.  a  Delaware  corporation  ("K2"),  K2  Acquisition
Corporation,  a Delaware  corporation  which is a wholly-owned  subsidiary of K2
("Acquisition"),  New Century Structures,  Inc., a Florida corporation (together
with its affiliated companies, "NCSI") and Avante Holding Group, Inc. ("Avante")

                                    RECITALS

      A. NCSI and K2 desire to consummate a merger (the  "Merger"),  wherein the
shareholders  of NCSI will  exchange  all of the issued and  outstanding  common
stock of NCSI for newly issued  shares of common stock of K2,  Acquisition  will
merge with and into NCSI, and NCSI will become a wholly-owned subsidiary of K2.

      B.  Avante  is  currently  the  Owner of  1,000,000  shares of K2 Series A
Preferred Stock and a shareholders of NCSI.

      C. The parties desire to structure the transactions contemplated herein so
that, after the Merger as provided  herein,  NCSI and/or K2 shall have completed
the Recapitalization (defined in Section 5.7 below), the current shareholders of
NCSI (defined in Section 5.7 below) will hold approximately  4,334,429 shares of
the common  stock of K2,  constituting  approximately  86.990% of the issued and
outstanding  shares  of  K2,  and  the  current  shareholders  of K2  will  hold
approximately 498,270 shares of K2, constituting approximately 10% of the issued
and  outstanding  of K2, and Avante  Holding will hold 150,000  shares of common
stock  after   conversion  of  the  Series  A  Preferred   Stock,   constituting
approximately 3.010% of the issued and outstanding K2.

      D. It is the intent of the parties that the Merger  qualify as a corporate
reorganization  under Section 368(a)(2)(E) of the Internal Revenue Code of 1986,
as amended (the "Code").

                                    AGREEMENT

      IN  CONSIDERATION of the mutual promises and covenants  herein,  including
the recitals,  which form a part of this Agreement,  the parties hereby agree as
follows:

1. MERGER AND EXCHANGE OF SECURITIES.

      1.1  CONSUMMATION  OF MERGER.  If this  Agreement  is duly  adopted by the
holders of the requisite  number of shares,  in accordance  with the  applicable
laws and  subject to the  provisions  hereof,  and the  conditions  set forth in
Sections 6 and 7 are met or waived,  NCSI and  Acquisition  shall promptly enter
into and file Articles of Merger,  under which  Acquisition shall merge with and
into NCSI,  and NCSI shall be the  surviving  corporation.  The Merger  shall be
consummated at the time of filing the Articles of Merger ("the Effective Time").
For accounting purposes,  the Merger shall be effective at the conclusion of the
last day of the month preceding the Effective Time.

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      1.2 EXCHANGE OF SHARES AT THE EFFECTIVE TIME:

            1.2.1  EXCHANGE OF  CERTIFICATES.  Each holder of a  certificate  or
certificates   representing   shares  of  NCSI  Common  Stock   ("Common")  upon
presentation  and surrender of such  certificate or certificates to K2, shall be
entitled to receive the consideration set forth herein.  Upon such presentation,
surrender,   and  exchange  as  provided  in  this  Section  1.2,   certificates
representing  shares  of NCSI  previously  held  shall  be  canceled.  Until  so
presented  and  surrendered,  each  certificate  which  represented  issued  and
outstanding  shares  of NCSI at the  Effective  Time  shall  be  deemed  for all
purposes to evidence the right to receive the consideration set forth in Section
1.2.2. If a certificate  representing shares of NCSI common stock has been lost,
stolen,  mutilated or destroyed, K2 shall require the submission of an indemnity
agreement and may require the submission of a bond in lieu of such certificate.

            1.2.2 CONSIDERATION FOR SHARES. The holders of the Common Stock (the
"Common Holders," each a "Common Holder") shall receive in exchange for each one
share of Common Stock approximately .720 shares of K2 common stock.

            1.2.3 FRACTIONAL  SHARES.  If the number of common shares determined
for a Common Holder as provided in Section 1.2.2 results in a fractional  share,
the number of common  shares to be  received  shall be rounded to the next whole
number of shares.

            1.2.4  REGISTRATION  OF SHARES.  The offer and sale of the K2 common
stock  shall be issued  pursuant to an  exemption  from  registration  under the
Securities Act of 1933 (the  "Securities  Act") and applicable  state securities
laws.

      1.3 COMMON STOCK OPTIONS OF NCSI SHAREHOLDERS. At the Effective Time:

            1.3.1  EXCHANGE  OF  OPTIONS.  The  present  holders  of  options to
purchase  NCSI  common  stock,  as set forth on Schedule  1.3  hereto.  All such
options shall be exercised by the holders thereof prior to the Closing, or shall
lapse at Closing.  Effective  Time shall be deemed for all  purposes to evidence
the right to receive the  consideration set forth in Section 1.3.2. If an option
to purchase  shares of NCSI common  stock has been lost,  stolen,  mutilated  or
destroyed,  K2 shall require the  submission  of an indemnity  agreement and may
require the submission of a bond in lieu of such option or warrant.

            1.3.2  CONSIDERATION FOR OPTIONS.  The holders of NCSI options shall
receive, in exchange for their options,  options to purchase shares of K2 common
stock as set forth on Schedule  1.3. The K2 options  delivered to the holders of
the NCSI  options  shall be subject to a plan and,  with respect to each holder,
represented by an option agreement, substantially equivalent to the terms of the
present  NCSI option plan and  agreement,  including,  without  limitation,  the
terms, vesting and exercise price of such options.

                                      -2-
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         1.4 COMMON STOCK OPTIONS OF K2 SHAREHOLDERS. The holders of existing K2
options,  as set forth on Schedule 1.4 hereto,  shall after the Effective  Time,
continue to hold such  options,  subject to the  existing K2 Option Plan and the
Agreement to amend capital structure..

2. CLOSING AND CLOSING DOCUMENTS.

         2.1 CLOSING.  The transactions  contemplated by this Agreement shall be
completed at a closing ("the  Closing") on a closing date ("the  Closing  Date")
which shall be as soon as possible after all shareholder  approvals are obtained
in accordance with law and as set forth in this Agreement, with the consummation
of the Merger,  as provided in Section 1.1, to take place as soon as practicable
thereafter.

         2.2 DOCUMENT  DELIVERIES  AND  PROCEDURES  FOR CLOSING.  On the Closing
Date,  all of the  documents  to be  furnished  to NCSI  and K2,  including  the
documents to be furnished  pursuant to Article VII of this  Agreement,  shall be
delivered  to Law Offices of Thomas G. Amon,  Esq.  counsel to K2, to be held in
escrow until the Effective Time or the date of  termination  of this  Agreement,
whichever  first occurs,  and  thereafter  shall be promptly  distributed to the
parties as their interests may appear.

      2.3 NCSI CLOSING  DOCUMENTS.  NCSI shall deliver the  following  documents
(collectively, the "NCSI Closing Documents"):

            2.3.1  ARTICLES OF MERGER.  The  Articles of Merger to be filed with
the State of Delaware, executed by NCSI;

            2.3.2 NCSI SHARE CERTIFICATES.  Certificates representing all of the
outstanding  shares of NCSI common  stock or  indemnity  agreements  or bonds as
provided in Section 1.2.1;

            2.3.3 NCSI OPTIONS.  All outstanding options or indemnity agreements
or bonds as provided in Section 1.3.1.

            2.3.4 GOOD STANDING CERTIFICATE. A certificate issued by the Florida
Secretary of State indicating that NCSI is qualified and in good standing within
such jurisdiction;

            2.3.5 CERTIFICATE OF SECRETARY OF NCSI A certificate executed by the
secretary of NCSI and attaching the  resolutions  of the NCSI Board of Directors
and the  resolutions of the  shareholders of NCSI  authorizing the  transactions
herein contemplated.

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            2.3.6 NCSI  OFFICER'S  CERTIFICATE.  A  certificate  dated as of the
Closing Date executed by a duly  authorized  officer of NCSI certifying that all
necessary  actions  have been  taken by NCSI's  shareholders  and  directors  to
authorize  the  transactions   contemplated  by  this  Agreement  and  that  all
representation  and  warranties  made by NCSI in the  Agreement are complete and
correct  in all  material  respects  as of the  Closing  Date  as if made on the
Closing Date;

            2.3.7 LEGAL OPINION. A Legal Opinion of counsel to NCSI with respect
to such other matters as is customary in transactions of this nature.

            2.3.8 OTHER  DOCUMENTS  AND  INSTRUMENTS.  Such other  documents and
instruments   as  may  be  reasonably   required  to  effect  the   transactions
contemplated by this Agreement.

      2.4  K2  AND  ACQUISITION  CLOSING  DOCUMENTS.  At  the  Closing,  K2  and
Acquisition  shall  deliver or cause to be  delivered  the  following  documents
(collectively, the "K2 Closing Documents"):

            2.4.1  ARTICLES OF MERGER.  The  Articles of Merger to be filed with
the State of Delaware, executed by Acquisition;

            2.4.2 K2  SHARE  CERTIFICATES.  The  certificates  representing  the
shares of K2 stock to be delivered  to the NCSI  shareholders  at the  Effective
Time in exchange for their NCSI stock as provided herein;

            2.4.3  GOOD  STANDING  CERTIFICATES.   Certificates  issued  by  the
Delaware  Secretary  of  State  indicating  that  K2 and  Acquisition  are  each
qualified and in good standing within such jurisdiction;

            2.4.4 CERTIFICATE OF SECRETARY OF K2. A certificate  executed by the
secretary of K2 and attaching the  resolutions  of the K2 Board of Directors the
transactions herein contemplated.

            2.4.5  K2  OFFICER'S  CERTIFICATE.  A  certificate  dated  as of the
Closing Date executed by a duly  authorized  officer of K2  certifying  that all
necessary  actions  have  been  taken  by K2's  shareholders  and  directors  to
authorize  the  transactions   contemplated  by  this  Agreement  and  that  all
representations  and  warranties  made by K2 in the  Agreement  are complete and
correct  in all  material  respects  as of the  Closing  Date  as if made on the
Closing Date;

            2.3.6 LEGAL OPINION.  A legal opinion  letter (the "Legal  Opinion")
signed by Thomas G. Amon, Esq., 500 Fifth Avenue, Suite 1650, New York, NY 10110
regarding  the total  amount of stock of K2 that will be issued and  outstanding
following the Merger and such other opinions as are customary in transactions of
this nature; and

                                      -4-
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            2.3.7 OTHER  DOCUMENTS  AND  INSTRUMENTS.  Such other  documents and
instruments   as  may  be  reasonably   required  to  effect  the   transactions
contemplated by this Agreement.

3. REPRESENTATIONS AND WARRANTIES OF NCSI.

      NCSI  represents and warrants to K2 that the statements  contained in this
Section 3 are correct and complete as of the date of this Agreement.

      3.1  ORGANIZATION OF NCSI. NCSI is a corporation  duly organized,  validly
existing,  and in good standing under the laws of the State of Florida. NCSI has
all the  requisite  power and  authority  to own,  lease and  operate all of its
properties and assets and to carry on its business as currently conducted and as
proposed to be conducted.  NCSI is duly licensed or qualified to do business and
is in good  standing in each  jurisdiction  in which the nature of the  business
conducted by it makes such  licensing or  qualification  necessary and where the
failure to be so  qualified  would,  individually  or in the  aggregate,  have a
Material  Adverse Effect upon it. As used in this Agreement,  the term "Material
Adverse Effect" with respect to any party,  shall mean any change or effect that
is  reasonably  likely to be  materially  adverse to the  business,  operations,
properties,  condition  (financial or otherwise),  assets or liabilities of such
party and such party's subsidiaries taken as a whole.

      3.2 AUTHORIZATION.  Subject to the approval of its shareholders,  NCSI has
full power and  authority  (including  full  corporate  power and  authority) to
execute and deliver this Agreement and the NCSI Closing Documents and to perform
its obligations hereunder and thereunder.  This Agreement  constitutes,  and the
NCSI Closing Documents will constitute, valid and legally binding obligations of
NCSI, enforceable in accordance with their respective terms and conditions.

      3.3  NONCONTRAVENTION.  Neither  the  execution  and the  delivery of this
Agreement  or  the  NCSI  Closing   Documents,   nor  the  consummation  of  the
transactions  contemplated  hereby or  thereby  by NCSI,  will (i)  violate  any
constitution,  statute, regulation,  rule, injunction,  judgment, order, decree,
ruling, charge, or other restriction of any government,  governmental agency, or
court  to  which  NCSI  is  subject  or  any  provision  of its  certificate  of
incorporation  or  bylaws,  or  (ii)  conflict  with,  result  in a  breach  of,
constitute a default under,  result in the  acceleration of, create in any party
the right to  accelerate,  terminate  modify,  or cancel,  or require any notice
under any agreement,  contract, lease, license, instrument, or other arrangement
to which  NCSI is a party or by which it is bound or to which any of its  assets
is subject.  NCSI does not need to give any notice to, make any filing with,  or
obtain any authorization, consent, or approval of any government or governmental
agency in order for the parties to consummate the  transactions  contemplated by
this Agreement.

      3.4  DISCLOSURES.  The  representations  and  warrants  contained  in this
Section 3 do not  contain  any untrue  statement  of a material  fact or omit to
state  any  material  fact  necessary  in  order  to  make  the  statements  and
information contained in this Section 3 not misleading.

                                      -5-
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      3.5  CAPITALIZATION.  The  authorized  capital  stock of NCSI  consists of
30,000,000 shares of common stock, of $.01 par value, 3,500,000 shares of Series
A Preferred Stock, $.01 par values of which 6,021,169 shares of Common Stock are
issued  and  outstanding,  and -0-  shares of  Preferred  Stock are  issued  and
outstanding and the  shareholders  and numbers of shares of common stock held by
each  shareholder  are as set forth on Schedule  3.5(a).  All of the outstanding
shares of NCSI common stock have been duly and validly authorized and issued.

      3.6  FINANCIAL  STATEMENTS.  NCSI's  audited  financial  statements  as at
December 31, 2006 (the "2006 Financial  Statements")  and for the two years then
ending are  attached  hereto as  Schedule  3.6.  The 2006  Financial  Statements
provided  have been prepared  from,  and is in  accordance  with,  the books and
records of NCSI, complies with all material respects with applicable  accounting
requirements  with respect  thereto,  has been prepared in accordance  with U.S.
generally accepted  accounting  principles ("U.S. GAAP") applied on a consistent
basis  during the  periods  involved  (except as may be  indicated  in the notes
thereto) and fairly presents in all material  respects the consolidated  results
of  operations  and cash flows (and  changes in financial  position,  if any) of
NCSI, as at the date(s) thereof or for the period(s) presented therein.

      3.7 ABSENCE OF MATERIAL CHANGE.  Since December 31, 2006 there has been no
change in the business,  operations,  financial condition or liabilities of NCSI
as stated in the 2006  Financial  Statements  that  would  result in a  Material
Adverse Effect on NCSI.

      3.8  LITIGATION.   There  are  no  actions,   suits,  claims,   inquiries,
proceedings or investigations before any court,  tribunal,  commission,  bureau,
regulatory, administrative or governmental agency, arbitrator, body or authority
pending  or, to the  knowledge  of NCSI,  threatened  against  NCSI which  would
reasonably be expected to result in any liabilities, including defense costs, in
excess of $1,000 in the  aggregate.  NCSI is not the named subject of any order,
judgment  or  decree  and is not in  default  with  respect  to any such  order,
judgment or decree.

      3.9 TAXES AND TAX RETURNS. NCSI has timely and correctly filed tax returns
and reports  (collectively,  "Returns")  required by applicable  law to be filed
(including,  without  limitation,  estimated  tax  returns,  income tax returns,
excise tax returns,  sales tax returns,  use tax returns,  property tax returns,
franchise  tax returns,  information  returns and  withholding,  employment  and
payroll tax returns) and all Returns were (at the time they were filed)  correct
in all  material  respects,  and  have  paid  all  taxes,  levies,  license  and
registration fees, charges or withholdings of any nature whatsoever reflected on
Returns to be owed and which have become due and payable  except as set forth on
Schedule 3.9. Any unpaid U.S.  Federal  income taxes,  interest and penalties of
NCSI do not exceed $5,000 in the aggregate.

                                      -6-
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      3.10 COMPLIANCE WITH APPLICABLE LAW.

            3.10.1 NCSI holds all licenses,  certificates,  franchises,  permits
and other  governmental  authorizations  ("Permits")  necessary  for the  lawful
conduct of its business  and the Permits are in full force and effect,  and NCSI
is in all material  respects  complying  therewith,  except where the failure to
possess or comply with the Permits would not have, in the aggregate,  a Material
Adverse Effect on NCSI.

            3.10.2  NCSI is and for the past five  years has been in  compliance
with all foreign,  federal, state and local laws, statutes,  ordinances,  rules,
regulations and orders applicable to the operation,  conduct or ownership of its
business or  properties  except for any  noncompliance  which is not  reasonably
likely to have, in the aggregate, a Material Adverse Effect on NCSI.

      3.11 AFFILIATE TRANSACTIONS.

            3.11.1  Except as set forth on Schedule  3.11  hereto,  NCSI has not
engaged in, and is not  currently  obligated to engage in (whether in writing or
orally), any transaction with any Affiliated Person (as defined below) involving
aggregate payments by or to NCSI of $10,000 U.S. or more.

            3.11.2 For purposes of this Section 3.11, "Affiliated Person" means:

            a. a director,  executive officer or Controlling  Person (as defined
below) of NCSI;

            b. a spouse of a director,  executive officer or Controlling  Person
of NCSI;

            c. a  member  of  the  immediate  family  of a  director,  executive
officer, or Controlling Person of NCSI who has the same home as such person;

            d. any  corporation  or  organization  (other  than NCSI) of which a
director,  executive officer,  chief financial  officer,  or a person performing
similar  functions  or is a  Controlling  Person of such  other  corporation  or
organization;

            e. any trust or estate in which a director,  executive  officer,  or
Controlling  Person  of NCSI or the  spouse  of such  person  has a  substantial
beneficial  interest or as to which such person or his spouse  serves as trustee
or in a similar  fiduciary  capacity,  and for  purposes of this  Section  3.11,
"Controlling  Person"  means any  person or entity  which,  either  directly  or
indirectly,  or acting in  concert  with one or more other  persons or  entities
owns,  controls or holds with power to vote, or holds proxies  representing  ten
percent or more of the outstanding common stock or equity securities.

      3.12   LIMITED   REPRESENTATIONS   AND   WARRANTIES.    Except   for   the
representations  and warranties of K2 expressly set forth in Section 4, NCSI has
not relied upon any  representation and warranty made by or on behalf of NCSI in
making  its  determination  to enter  into this  Agreement  and  consummate  the
transactions contemplated by this Agreement.

                                      -7-
<PAGE>

      3.13 DISCLOSURE.  No  representation  or warranty made by NCSI shareholder
contained  in  this  Agreement,  and no  statement  contained  in the  Schedules
delivered by NCSI hereunder, contains any untrue statement of a material fact or
omits  any  material  fact  necessary  in order to make a  statement  herein  or
therein, in light of the circumstances under which it is made, not misleading.

      3.14 REAL  PROPERTY.  NCSI does not own or lease,  directly or indirectly,
any real property except as shown of Schedule 3.14.

      3.15  ENVIRONMENTAL  MATTERS.  NCSI does not have any financial  liability
under any environmental laws.

      3.16 INTELLECTUAL PROPERTY. Except as shown on Schedule 3.17 NCSI does not
own or lease, directly or indirectly,  any Intellectual Property.  "Intellectual
Property",  for  purposes  of  this  agreement,   shall  mean:  patents,  patent
applications,  trademarks,  trademark registrations,  applications for trademark
registration,  trade names,  service marks,  registered  Internet  domain names,
licenses and other agreements with respect to any of the foregoing to which NCSI
is  licensor  or  licensee.  In  addition,  there are no  pending  or, to NCSI's
knowledge,  threatened,  claims  against  NCSI  by any  person  as to any of the
Intellectual  Property,  or their use, or claims of  infringement by NCSI on the
rights of any person and no valid basis exists for any such claims.

4. REPRESENTATIONS AND WARRANTIES OF K2 AND ACQUISITION.

      K2 and  Acquisition  represent  and  warrant  to NCSI that the  statements
contained  in this  Section 4 are  correct  and  complete as of the date of this
Agreement.

      4.1  ORGANIZATION.  Each  of K2  and  Acquisition  is a  corporation  duly
organized, validly existing, and in good standing under the laws of the State of
Delaware,  K2 and  Acquisition has all the requisite power and authority to own,
lease and operate all of its  properties and assets ant to carry on its business
as  currently  conducted  and  as  proposed  to be  conducted.  Each  of K2  and
Acquisition is duly licensed or qualified to do business and is in good standing
in each  jurisdiction in which the nature of the business  conducted by it makes
such  licensing  or  qualification  necessary  and  where the  failure  to be so
qualified  would,  individually  or in the  aggregate,  have a Material  Adverse
Effect upon it.

      4.2  AUTHORIZATION  OF  TRANSACTIONS.  Each of K2 and Acquisition has full
power and  authority  to execute and deliver this  Agreement  and the K2 Closing
Documents to which any K2 shareholder is a party and to perform all  obligations
hereunder  and  thereunder.  This  Agreement  constitutes,  and  the K2  Closing
Documents  will  constitute,  the valid and legally  binding  obligation  of K2,
enforceable in accordance with their respective terms and conditions.

                                      -8-
<PAGE>

      4.3  CAPITALIZATION.  The  authorized  capital  stock  of K2  consists  of
25,000,000  shares of common stock,  no par value, of which 4,982,699 are issued
and  outstanding,  and 1,000,000  shares of preferred stock, par value $0.01 per
share,  all of which are issued  and  outstanding.  All  issued and  outstanding
shares of K2 stock have been duly authorized and validly  issued,  and are fully
paid and  non-assessable.  All of the  outstanding  shares of common  stock (and
options to purchase  common stock and other  outstanding  securities  of K2 have
been duly and validly  issued in  compliance  with federal and state  securities
laws. Except as set forth herein and on Schedule 1.4 hereto, and as set forth in
this Agreement,  there are no outstanding or authorized subscriptions,  options,
warrants, agreements,  obligations,  understandings or rights of any kind giving
the holder the right to  purchase  or  otherwise  receive or have issued to such
holder  any  common  stock  or  other  securities  or K2 or  any  securities  or
obligations convertible into, any shares of capital stock or other securities of
K2, and there are no  dividends  which have  accrued  or been  declared  but are
unpaid on the capital stock of K2. There are no outstanding or authorized  stock
appreciation, phantom stock or similar rights with respect to K2.

      4.4 SUBSIDIARIES. Except for Acquisition and K2 Design, Inc. (NY), K2 does
not own,  directly or indirectly,  any capital stock or other equity interest in
any corporation, partnership or other entity.

      4.5 OWNERSHIP OF K2 SHARES.  Each K2 shareholder  owns and holds of record
that number of K2 Shares shown on Schedule  4.5. As of the date  hereof,  all of
the shares of the  issued  and  outstanding  stock of K2 are  "free-trading"  by
virtue of either (i) an exemption from the  Securities  Act, or (ii) having been
registered pursuant to the Securities Act.

      4.6  NONCONTRAVENTION.  Neither  the  execution  and the  delivery of this
Agreement or the K2 Closing Documents,  nor the consummation of the transactions
contemplated  hereby or  thereby,  by K2 or  Acquisition  will (i)  violate  any
constitution,  statute, regulation,  rule, injunction,  judgment, order, decree,
ruling, charge, or other restriction of any government,  governmental agency, or
court to which K2  Acquisition is subject,  or (ii) conflict  with,  result in a
breach of, constitute a default under,  result in the acceleration of, create in
any party the right to accelerate,  terminate  modify, or cancel, or require any
notice under any  agreement,  contract,  lease,  license,  instrument,  or other
arrangement to which agreement,  contract, lease, license,  instrument, or other
arrangement to which K2 or such K2 shareholder is a party or by which K2 or such
Acquisition is bound or to which K2 or Acquisition assets is subject. Neither K2
nor any Acquisition needs to give any notice to, make any filing with, or obtain
any authorization, consent, or approval of any government or governmental agency
in order for the parties to consummate  the  transactions  contemplated  by this
Agreement.

                                      -9-
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      4.7 SEC REPORTS AND FINANCIAL  STATEMENTS.  K2 has filed with the SEC, and
has heretofore made available to NCSI, complete and correct copies of all forms,
reports,  schedules,  statements and other documents  required to be filed by K2
under the  Securities  Act, and the Exchange  Act (as such  documents  have been
amended or supplemented since the time of their filing) (collectively,  the "SEC
Reports").  As of their  respective  dates, the SEC Reports  (including  without
limitation,  any financial statements or schedules included therein) (a) did not
contain any untrue statement of a material fact required to be stated therein or
necessary  in  order  to make  the  statements  made  therein,  in  light of the
circumstances  under which they were made, not  misleading,  and (b) complied in
all material respects with the applicable requirements of the Securities Act and
Exchange Act (as the case may be) and all  applicable  rules and  regulations of
the SEC promulgated thereunder. Each of the financial statements included in the
SEC Reports has been prepared  from,  and is in accordance  with,  the books and
records of K2, complies with all material  respects with  applicable  accounting
requirements  and with  the  published  rules  and  regulations  of the SEC with
respect thereto,  has been prepared in accordance with U.S.  generally  accepted
accounting  principles  ("U.S.  GAAP") applied on a consistent  basis during the
periods  involved  (except as may be indicated in the notes  thereto) and fairly
presents in all material  respects the  consolidated  results of operations  and
cash flows (and changes in financial position,  if any) of K2, as at the date(s)
thereof or for the period(s) presented therein.

      4.8. ABSENCE OF MATERIAL CHANGE. Since December 31, 2006 there has been no
change in the business, operations,  financial condition or liabilities of K2 as
stated in the Form 10-KSB  filed by K2 on March 30, 2007 with the SEC that would
result in a Material Adverse Effect on K2.

      4.9  LITIGATION.   There  are  no  actions,   suits,  claims,   inquiries,
proceedings or investigations before any court,  tribunal,  commission,  bureau,
regulatory, administrative or governmental agency, arbitrator, body or authority
pending or, to the knowledge of K2, threatened against K2 which would reasonably
be expected to result in any liabilities,  including defense costs, in excess of
$1,000 in the aggregate.  K2 is not the named subject of any order,  judgment or
decree and is not in default with respect to any such order, judgment or decree.

      4.10 TAXES AND TAX RETURNS.  K2 has timely and correctly filed tax returns
and reports  (collectively,  "Returns")  required by applicable  law to be filed
(including,  without  limitation,  estimated  tax  returns,  income tax returns,
excise tax returns,  sales tax returns,  use tax returns,  property tax returns,
franchise  tax returns,  information  returns and  withholding,  employment  and
payroll tax returns) and all Returns were (at the time they were filed)  correct
in all  material  respects,  and  have  paid  all  taxes,  levies,  license  and
registration fees, charges or withholdings of any nature whatsoever reflected on
Returns to be owed and which have become due and payable  except as set forth on
Schedule 4.10. Any unpaid U.S.  Federal income taxes,  interest and penalties of
K2 do not exceed $5,000 in the aggregate.

                                      -10-
<PAGE>

      4.11  EMPLOYEES.  K2 has no employees who are salaried or full-time or who
are entitled to wages in respect of hours worked.

      4.12 COMPLIANCE WITH APPLICABLE LAW.

            4.12.1 K2 holds all licenses, certificates,  franchises, permits and
other governmental  authorizations  ("Permits") necessary for the lawful conduct
of its business  and the Permits are in full force and effect,  and K2 is in all
material respects  complying  therewith,  except where the failure to possess or
comply with the Permits would not have,  in the  aggregate,  a Material  Adverse
Effect on K2.

            4.12.2 K2 is and for the past five years has been in compliance with
all  foreign,  federal,  state  and local  laws,  statutes,  ordinances,  rules,
regulations and orders applicable to the operation,  conduct or ownership of its
business or  properties  except for any  noncompliance  which is not  reasonably
likely to have, in the aggregate, a Material Adverse Effect on K2.

      4.13  CONTRACTS  AND  AGREEMENTS.  K2 is not a party  to or  bound  by any
commitment,  contract,  agreement or other  instrument  which  involves or could
involve  aggregate  future payments by K2 of more than $1,000,  (ii) K2 is not a
party to or bound by any  commitment,  contract,  agreement or other  instrument
which is material to the business,  operations,  properties, assets or financial
condition  of  K2,  and  (iii)  no  commitment,  contract,  agreement  or  other
instrument,  other than charter documents, to which K2 is a party or by which K2
is bound,  limits the  freedom of K2 to compete in any line of  business or with
any  person.  K2  is  not  in  default  on  any  contract,  agreement  or  other
instruments.

      4.14 AFFILIATE TRANSACTIONS.

            4.14.1  Except  as set forth on  Schedule  4.14  hereto,  K2 has not
engaged in, and is not  currently  obligated to engage in (whether in writing or
orally), any transaction with any Affiliated Person (as defined below) involving
aggregate payments by or to K2 of $10,000 U.S. or more.

            4.14.2 For purposes of this Section 4.14, "Affiliated Person" means:

            a. a director,  executive officer or Controlling  Person (as defined
below) of K2;

            b. a spouse of a director,  executive officer or Controlling  Person
of K2;

            c. a  member  of  the  immediate  family  of a  director,  executive
officer, or Controlling Person of K2 who has the same home as such person;

                                      -11-
<PAGE>

            d.  any  corporation  or  organization  (other  than  K2) of which a
director,  executive officer,  chief financial  officer,  or a person performing
similar  functions  or is a  Controlling  Person of such  other  corporation  or
organization;

            e. any trust or estate in which a director,  executive  officer,  or
Controlling  Person  of K2 or  the  spouse  of  such  person  has a  substantial
beneficial  interest or as to which such person or his spouse  serves as trustee
or in a similar  fiduciary  capacity,  and for  purposes of this  Section  4.14,
"Controlling  Person"  means any  person or entity  which,  either  directly  or
indirectly,  or acting in  concert  with one or more other  persons or  entities
owns,  controls or holds with power to vote, or holds proxies  representing  ten
percent or more of the outstanding common stock or equity securities.

      4.15   LIMITED   REPRESENTATIONS   AND   WARRANTIES.    Except   for   the
representations  and warranties of NCSI expressly set forth in Section 3, K2 has
not relied upon any  representation and warranty made by or on behalf of NCSI in
making  its  determination  to enter  into this  Agreement  and  consummate  the
transactions contemplated by this Agreement.

      4.16  DISCLOSURE.  No  representation  or warranty made by K2  shareholder
contained  in  this  Agreement,  and no  statement  contained  in the  Schedules
delivered by K2 hereunder,  contains any untrue  statement of a material fact or
omits  any  material  fact  necessary  in order to make a  statement  herein  or
therein, in light of the circumstances under which it is made, not misleading.

      4.17 REAL PROPERTY. K2 does not own or lease, directly or indirectly,  any
real property.

      4.18 ENVIRONMENTAL MATTERS. K2 does not have any financial liability under
any environmental laws.

      4.19 PERSONAL PROPERTY.  K2 does not own any personal property the current
fair market value of which is more than $5,000.

      4.20  INTELLECTUAL  PROPERTY.  K2  does  not  own or  lease,  directly  or
indirectly, any Intellectual Property.  "Intellectual Property", for purposes of
this agreement, shall mean: patents, patent applications,  trademarks, trademark
registrations,  applications for trademark  registration,  trade names,  service
marks,  registered  Internet  domain names,  licenses and other  agreements with
respect  to any of the  foregoing  to  which  K2 is  licensor  or  licensee.  In
addition,  there are no pending or, to such Warranting  Shareholder's knowledge,
threatened,  claims  against  K2 by any  person  as to  any of the  Intellectual
Property,  or their use,  or claims of  infringement  by K2 on the rights of any
person and no valid basis exists for any such claims.

      4.21  INSURANCE.  K2 does not own,  directly or indirectly,  any insurance
policies with respect to the business and assets of K2.

                                      -12-
<PAGE>

      4.22 POWERS OF  ATTORNEY.  K2 has not issued any powers of attorney to any
other  person  except for such powers of  attorney as are granted in  connection
with filings required under securities laws.

      4.23 BANK ACCOUNTS.  Schedule 4.22 is a true and complete list of all bank
accounts,  safe deposit boxes and lock boxes of K2,  including,  with respect to
each  such  account  and  lock  box:  (a)   identification   of  all  authorized
signatories;  (b) identification of the business purpose of such account or lock
box, including  identification of any accounts or lock boxes representing escrow
funds or otherwise subject to restriction;  and (c) identification of the amount
on deposit on the date indicated.

      4.24 CURRENT  ASSETS OF K2 SHALL BE USED TO SATISFY  CURRENT  LIABILITIES.
Prior to or  simultaneously  with the Closing,  (i) the current  assets of K2 as
disclosed in the audit  financial  statements  for  December 31, 2006,  attached
hereto as Schedule  4.24 (the  "December  31, 2006 FS") shall be used to satisfy
all current  liabilities of K2 as disclosed in the December 31, 2006 FS and (ii)
K2 shall have no liabilities,  except for the Liability as described on Schedule
4.24.

5. COVENANTS OF THE PARTIES.

      5.1 CONDUCT OF THE BUSINESS OF K2. During the period from the date of this
Agreement  to the  Closing  Date,  K2 will  conduct its  business  and engage in
transactions only in the ordinary course  consistent with past practice.  During
such  period,  K2  will  use its  best  efforts  to (a)  preserve  its  business
organization  intact,  and (b)  maintain its current  status as a company  whose
shares are traded on the Over The Counter  Bulletin Board. In addition,  without
limiting the generality of the  foregoing,  K2 agrees that from the date of this
Agreement to the Closing Date,  except as otherwise  consented to or approved by
NCSI in writing (which consent or approval shall not be  unreasonably  withheld,
delayed or  conditioned)  or as  permitted  or required by this  Agreement or as
required by law, K2 will not:

            5.1.1 grant any  severance  or  termination  pay to or enter into or
amend any employment  agreement with, or increase the amount of payments or fees
to, any of its employees,  officers or directors other than salary  increases to
employees consistent with past increases;

            5.1.2 make any capital expenditures in excess of $1,000;

            5.1.3 guarantee the obligations of any person;

            5.1.4  acquire  assets other than those  necessary in the conduct of
its business in the ordinary course;

            5.1.5  sell,  transfer,  assign,  encumber or  otherwise  dispose of
assets with a value in excess of $1,000;

                                      -13-
<PAGE>

            5.1.6  enter into or amend or  terminate  any long term (one year or
more) contract (including real property leases);

            5.1.7  enter into any  contract  that calls for the payment by K2 of
$1,000 or more, or enter into any amendment to any contract that  increases K2's
obligation  to pay any sum or sums by  $1,000  or more,  after  the date of this
Agreement;

            5.1.8 engage or participate in any material  transaction or incur or
sustain  any  material  obligation  otherwise  than in the  ordinary  course  of
business;

            5.1.9  contribute  to any benefit  plans on behalf of  employees  or
service providers of K2;

            5.1.10 hire any  full-time  employees  or enter into any  employment
contracts that provide other than an "at will" employer-employee relationship;

            5.1.11 acquire any real property; or

            5.1.12 agree to do any of the foregoing.

      5.2 NO  SOLICITATION.  During  the  period  beginning  on the date of this
Agreement and ending on the Closing Date,  neither K2 nor any of its  directors,
officers, shareholders,  representatives,  agents or other persons controlled by
any of them,  shall,  directly  or  indirectly  encourage  or  solicit,  or hold
discussions or  negotiations  with, or provide any  information to, any persons,
entity or group  other than NCSI  concerning  any  merger,  sale of  substantial
assets not in the ordinary  course of business,  sale of shares of capital stock
or similar  transactions  involving K2. K2 will promptly communicate to NCSI the
identity  of  any  interested  or  inquiring  party,  all  relevant  information
surrounding  the interest or inquiry,  as well as the terms of any proposal that
K2 may receive in respect of any such transaction.

      5.3 ACCESS TO PROPERTIES AND RECORDS; CONFIDENTIALITY.

            5.3.1 ACCESS TO K2 RECORDS; CONFIDENTIALITY OF K2 RECORDS.

            (a) K2 shall permit NCSI and its  representatives  reasonable access
to its  properties  and shall  disclose  and make  available  to NCSI all books,
papers  and  records  relating  to the  assets,  stock,  ownership,  properties,
obligations, operations and liabilities of K2, including but not limited to, all
books of account  (including the general ledger),  tax records,  minute books of
directors and stockholders meetings,  organizational documents, bylaws, material
contracts and  agreements,  filings with any regulatory  authority,  accountants
work papers, litigation files, plans affecting employees, and any other business
activities  or prospects in which NCSI may have a reasonable  interest,  in each
case during normal  business hours and upon reasonable  notice.  K2 shall not be
required  to provide  access to or  disclose  information  where such  access or
disclosure:  (a) would jeopardize the attorney-client  privilege with respect to
the  negotiation of the  transactions  contemplated  herein or any other similar
transaction  within  the  past  year  involving  a  merger  of  K2  or  sale  of
substantially  all of its  assets;  or  (b)  would  contravene  any  law,  rule,
regulation,  order, judgment,  decree or binding agreement entered into prior to
the date of the Agreement.  The parties will use all reasonable  efforts to make
appropriate substitute disclosure  arrangements under circumstances in which the
restrictions of the preceding sentence apply.

                                      -14-
<PAGE>

            (b) All information  furnished by K2 to NCSI or the  representatives
or  affiliates of NCSI pursuant to, or in any  negotiation  in connection  with,
this Agreement shall be treated as the sole property of K2 until consummation of
the Merger and, if the Merger shall not occur,  NCSI and its affiliates,  agents
and advisors  shall upon  written  request  return to K2 all  documents or other
materials containing,  reflecting, referring to such information, and shall keep
confidential all such information and shall not disclose or use such information
for competitive purposes.  The obligation to keep such information  confidential
shall not apply to (a) any information  which (i) NCSI can establish by evidence
was already in its  possession  (subject to no  obligation  of  confidentiality)
prior to the  disclosure  thereof to K2;  (ii) was then  generally  known to the
public;  (iii)  becomes known to the public other than as a result of actions by
NCSI or by the directors,  officers,  employees,  agents or  representatives  of
NCSI; or (iv) was disclosed to NCSI, or to the directors, officers, employees or
representatives  of NCSI, solely by a third party not bound by any obligation of
confidentiality;  or (b)  disclosure in accordance  with the federal  securities
laws, a federal  banking  laws,  or pursuant to an order of a court or agency of
competent jurisdiction.

            5.3.1 ACCESS TO NCSI RECORDS; CONFIDENTIALITY OF NCSI RECORDS.

            (a) NCSI shall permit K2 and its  representatives  reasonable access
to its properties and shall disclose and make available to K2 all books,  papers
and records relating to the assets, stock, ownership,  properties,  obligations,
operations and  liabilities of NCSI,  including but not limited to, all books of
account (including the general ledger),  tax records,  minute books of directors
and stockholders meetings,  organizational documents, bylaws, material contracts
and agreements, filings with any regulatory authority,  accountants work papers,
litigation files, plans affecting  employees,  and any other business activities
or  prospects  in which K2 may have  reasonable  interest,  in each case  during
normal business hours and upon reasonable notice.  NCSI shall not be required to
provide access to or disclose  information where such access or disclosure:  (a)
would jeopardize the  attorney-client  privilege with respect to the negotiation
of the transactions  contemplated herein or any other similar transaction within
the past year  involving  a merger of NCSI or sale of  substantially  all of its
assets;  or (b) would  contravene any law, rule,  regulation,  order,  judgment,
decree or binding agreement entered into prior to the date of the Agreement. The
parties  will  use  all  reasonable  efforts  to  make  appropriate   substitute
disclosure  arrangements  under  circumstances  in which the restrictions of the
preceding sentence apply.

                                      -15-
<PAGE>

            (b) All information  furnished by NCSI to K2 or the  representatives
or  affiliates of NCSI pursuant to, or in any  negotiation  in connection  with,
this Agreement shall be treated as the sole property of NCSI until  consummation
of the Merger and, if the Merger shall not occur, K2 and its affiliates,  agents
and advisors  shall upon written  request  return to NCSI all documents or other
materials containing,  reflecting, referring to such information, and shall keep
confidential all such information and shall not disclose of use such information
for  competitive   purposes.   The  obligation  to  keep  of  such   information
confidential  shall not apply to (a) any information  which (i) K2 can establish
by  evidence  was  already  in  its  possession  (subject  to no  obligation  of
confidentiality)  prior  to the  disclosure  thereof  to  NCSI;  (ii)  was  then
generally known to the public; (iii) becomes known to the public other than as a
result of  actions by K2 or by the  directors,  officers,  employees,  agents or
representatives  of K2;  or  (iv)  was  disclosed  to K2,  or to the  directors,
officers,  employees or representatives of K2, solely by a third party not bound
by any obligation of  confidentiality;  or (b) disclosure in accordance with the
federal  securities  laws, a federal  banking laws, or pursuant to an order of a
court or agency of competent jurisdiction.

      5.4 REGULATORY MATTERS.

            5.4.1  The  parties  will  cooperate  with  each  other  and use all
reasonable  efforts  to  prepare  all  necessary  documentation,  to effect  all
necessary filings and to obtain all necessary permits, consents,  approvals, and
authorizations  of all  third  parties  and  governmental  bodies  necessary  to
consummate the transactions  contemplated by this Agreement  including,  without
limitation,   those  that  may  be  required  from  the  SEC,  other  regulatory
authorities,  or K2's  shareholders.  K2 and NCSI  shall  each have the right to
review reasonably in advance all information relating to K2 or NCSI, as the case
may be,  and any of their  respective  subsidiaries,  together  with  any  other
information  reasonably  requested,  which  appears in any  filing  made with or
written  material  submitted to any  governmental  body in  connection  with the
transactions  contemplated  by this  Agreement.  NCSI  shall  bear all  expenses
associated with SEC filings.

            5.4.2 K2 and NCSI will  promptly  furnish  each other with copies of
written  communications  received  by K2 and  NCSI  or any of  their  respective
subsidiaries  from, or delivered by any of the  foregoing  to, any  governmental
body in respect of the transactions contemplated by this Agreement.

      5.5  FURTHER  ASSURANCES.  Subject  to the  terms and  conditions  of this
Agreement, each of the parties agrees to use all commercially reasonable efforts
to take,  or cause to be taken,  all action and to do, or cause to be done,  all
things  necessary,  proper or advisable under applicable laws and regulations to
consummate and make effective the transactions contemplated by this Agreement.

                                      -16-
<PAGE>

      5.6 PUBLIC  ANNOUNCEMENTS.  Prior to the  Closing,  no party will issue or
distribute  any  information  to its  shareholders  or  employees  other than as
required to conduct their respective  shareholders'  meetings, any news releases
or any other public  information  disclosures  with respect to this Agreement or
any of the  transactions  contemplated by this Agreement  without the consent of
the other parties or their designated representative, except as may be otherwise
required by law.

      5.7 POST-CLOSING COVENANTS

            5.7.1  RECAPITALIZATION OF K2. It is anticipated that the holders of
K2's equity will, prior to the Effective Time, on one or more occasions, vote to
amend, and will amend, K2's certificate of incorporation to

            (a) adjust the numbers of shares of K2 common stock  outstanding  as
described in Section 5.7.2 below; and

            (b)  take  such  other  actions  with  respect  to  amending  the K2
certificate of  incorporation  as may be necessary to effect the  post-Effective
Time  capital  structure   contemplated  herein  (such  actions  together,   the
"Recapitalization") and to rename the Company.

            5.7.2 ADJUSTMENT OF EXISTING K2 SHAREHOLDERS' SHARES. As a condition
to Closing, the current shareholders of K2 shall have entered into the Agreement
to Amend Capital  Structure,  in the form attached as Exhibit B, under which the
holders of a  sufficient  number of shares of K2 stock shall agree to amend K2's
certificate of incorporation such that, as provided therein, not later than June
30,  2007,  the  number of  shares  of  presently  outstanding  K2 common  stock
presently held by the K2  shareholders  shall be adjusted such that the adjusted
number  of shares  will  comprise  498,270  shares  of  common  stock  (existing
shareholders),  to be outstanding after Closing, as provided in Schedule 3.5(b);
and  provided  further  that the sum of (i) the total  shares of K2 common stock
outstanding  at that time plus (ii) the  number of shares of common  stock  into
which any  outstanding  shares of K2 Preferred may be  converted,  excluding any
shares of common stock underlying options or issued upon exercise of any options
shall equal 4,982,699 shares.

      5.8 APPROVAL OF MERGER BY NCSI  SHAREHOLDERS.  The Common Holders of NCSI,
as a condition  to  receiving  such  stock,  shall  approve of the Merger,  thus
relinquishing  any  appraisal  rights under  Florida  law.  The Common  Holders,
concurrently  with the  execution  hereof,  shall have executed a consent to the
Merger,  as set forth in the  Agreement  to Amend  Capital  Structure,  likewise
waiving any appraisal rights under Florida law, as set forth in the Agreement to
Amend Capital Structure.

                                      -17-
<PAGE>

      6. CONDITIONS PRECEDENT TO NCSI'S OBLIGATIONS.

      The  obligations of NCSI to consummate the  transactions  contemplated  by
this  Agreement are subject to  satisfaction  of the following  conditions at or
before the Closing Date and may be waived only in writing by NCSI.

      6.1 K2'S COVENANTS,  REPRESENTATIONS  AND  WARRANTIES.  All the covenants,
terms and  conditions of the Agreement to be complied with or performed by K2 at
or before the Closing Date shall have been  complied  with and  performed in all
respects.  The representations and warranties made by K2 in this Agreement shall
be complete  and  correct at and as of the Closing  Date with the same force and
effect as though such  representations and warranties had been made at and as of
the Closing Date.

      6.2  DELIVERY  OF  DOCUMENTS  BY K2.  K2  shall  have  duly  executed  and
delivered, or caused to be executed and delivered the K2 Closing Documents.

      6.3 OTHER APPROVALS. All authorizations,  consents, orders or approvals of
any  United  States  federal  or state  governmental  agency  necessary  for the
consummation  of the Merger or the  transactions  contemplated by this Agreement
(other than such actions,  approvals of filings which,  pursuant to the terms of
this  Agreement,  are to take  place on or after the  Closing)  shall  have been
filed, occurred or been obtained.

      6.4 NO  LITIGATION.  No  administrative  investigation,  action,  suit  or
proceeding  seeking to enjoin the consummation of the transactions  contemplated
by this Agreement shall be pending or threatened.

      6.5 NO CURRENT  LIABILITIES.  K2 shall have no current  liabilities except
for permitted liabilities.

      6.6  ABSENCE OF  MATERIAL  CHANGE.  There shall have been no change in the
business, operations,  financial condition or liabilities of K2 as stated in the
Form 10 KSB filed by K2 on March 30, 2007 for the year ended  December  31, 2006
with the SEC that has or can  reasonably  be  expected  to result in a  Material
Adverse Effect on K2.

      6.7 FINANCIAL STATEMENTS.  There shall have been no material change in the
financial  condition  of K2  from  that  represented  in the  audited  financial
statements as of December 31, 2006 attached hereto as Schedule 4.24.

      6.8 LEGAL OPINION. The K2 Legal Opinion shall have been delivered to NCSI.

      6.9  CERTIFICATES OF GOOD STANDING.  A certificate  issued by the Delaware
Secretary of State  indicating  that K2 is qualified and in good standing within
such jurisdiction shall have been delivered to NCSI.

                                      -18-
<PAGE>

      6.10 BOARD OF  DIRECTORS.  NCSI shall  have the right to  designate  three
members to the K2 Board of  Directors,  which shall be expanded to five members.
On and after the Effective Date, the current  Directors of K2 shall tender their
resignations.

      6.11  K2  SHAREHOLDER  APPROVAL.  This  Agreement,   the  Merger  and  the
Recapitalization  shall have been approved by the affirmative vote of the amount
of K2 capital stock necessary for consummation of the Merger under Delaware Law.

      7. CONDITIONS PRECEDENT TO K2'S OBLIGATIONS.

      The obligations of K2 to consummate the transactions  contemplated by this
Agreement are subject to satisfaction  of the following  conditions at or before
the Closing Date and may be waived only in writing by K2.

      7.1 NCSI'S COVENANTS,  REPRESENTATIONS AND WARRANTIES.  All the covenants,
terms and  conditions of this Agreement to be complied with or performed by NCSI
on or before the Closing Date shall have been complied with and performed in all
respects.  The  representations  and  warranties  made by NCSI in this Agreement
shall be complete  and correct at and as of the Closing Date with the same force
and effect as though such representations and warranties had been made at and as
of the Closing Date.

      7.2  DELIVERY OF  DOCUMENTS  BY NCSI.  NCSI shall have duly  executed  and
delivered,  or caused to be executed and delivered,  to K2, or at its direction,
this Agreement, the NCSI Shares and the NCSI Closing Documents.

      7.3 OTHER APPROVALS. All authorizations,  consents, orders or approvals of
any  United  States  federal  or state  governmental  agency  necessary  for the
consummation  of the Merger or the  transactions  contemplated by this Agreement
(other than such actions,  approvals or filings which,  pursuant to the terms of
this  Agreement,  are to take  place on or after the  Closing)  shall  have been
filed, occurred or been obtained.

      7.4 NCSI SHAREHOLDER APPROVAL. This Agreement shall have been approved and
adopted by the affirmative  votes of that amount of NCSI's  outstanding  capital
stock necessary for the consummation of the Merger pursuant to Florida law.

      7.5 NO  LITIGATION.  No  administrative  investigation,  action,  suit  or
proceeding  seeking to enjoin the consummation of the transactions  contemplated
by this Agreement shall be pending or threatened.

      7.6 ORDERS.  NCSI shall have a minimum of  $5,000,000 in firm orders as of
the Closing Date.

      7.7 LEGAL OPINION. The NCSI Legal Opinion shall have been delivered to K2.

                                      -19-
<PAGE>

8.       TERMINATION

      8.1 TERMINATION OF AGREEMENT.  Anything contained in this Agreement to the
contrary  notwithstanding,  the Agreement may be terminated and abandoned at any
time  (whether  before  or  after  the  approval  and  adoption  thereof  by the
shareholders of NCSI) prior to the Effective Time:

            8.1.1 By mutual consent of K2 and NCSI;

            8.1.2 By NCSI if any  condition  set forth in Section 6 has not been
met and has not been waived;

            8.1.3 By K2 if any condition set forth in Section 7 has not been met
and has not been waived;

            8.1.4 By K2 or NCSI, if any suit,  action or other  proceeding shall
be pending or threatened by the federal or a state  government  before any court
or governmental agency, in which it is sought to restrain, prohibit or otherwise
affect the consummation of the transactions contemplated hereby;

            8.1.5  By  NCSI  if  there  is   discovered   any  material   error,
misstatement  or  omission  in  the  representations  and  warranties  of K2 and
Acquisition;

            8.1.6 By K2 if there is discovered any material error,  misstatement
or omission in the representations and warranties of NCSI; and

            8.1.7 by  either K2 or NCSI if the  Effective  Time  shall  have not
occurred by September 30, 2007 provided,  however, such termination shall not be
available to any party whose failure to fulfill any obligation of this Agreement
has been the cause of, or  resulted  in, the failure of the Closing to have been
effected on or prior to such date.

            8.2 Any of the terms or conditions  of this  Agreement may be waived
at any time by the party which is entitled  to the  benefit  thereof,  by action
taken by its Board of Directors;  provided,  however,  that such action shall be
taken only if, in the judgment of the Board of Directors taking the action, such
waiver will not have a materially  adverse effect on the benefits intended under
this Agreement to the party waiving such term or condition.

9        MISCELLANEOUS.

            9.1 TAX TREATMENT BY THE PARTIES.  Unless otherwise required by law,
the  parties  shall  treat  the  Merger  as  a   reorganization   under  Section
368(a)(2)(E)  of the  Code  for all tax  reporting  purposes;  furthermore,  the
parties shall not take, and have not taken, any action that is inconsistent with
reorganization treatment under Section 368(a)(2)(E) of the Code.

                                      -20-
<PAGE>

      9.2 NO THIRD  PARTY  BENEFICIARIES.  This  Agreement  shall not confer any
rights or  remedies  upon any person or entity  other than the parties and their
respective successors and assigns.

      9.3 SUCCESSORS  AND ASSIGNS.  No party may assign either this Agreement or
any of its rights,  interests,  or obligations  under this Agreement without the
prior  written  consent of all other  parties.  Subject to the  foregoing,  this
Agreement  shall be binding  upon and inure to the  benefit of the  parties  and
their respective permitted successors and assigns.

      9.4 NOTICES. All notices,  requests,  demands,  claims, consents and other
communications  required or permitted  under this Agreement shall be in writing.
Any  notice,  request,  demand,  claim,  communication  or  consent  under  this
Agreement  shall be deemed duly given if (and shall be  effective  two  business
days after) it is sent by certified  mail,  return  receipt  requested,  postage
prepaid, and addressed to the intended recipient as set forth below:

If to NCSI or Avante:        New Century Structures, Inc.
                             1900 South Harbor City Blvd.
                             Suite 315
                             Melbourne, FL 32901
                             Attention:  Joseph Sorci

If to K2 or Acquisition:     K2 Digital, Inc
                             c/o Law Offices of Thomas G. Amon
                             500 Fifth Avenue
                             Suite 1650
                             New York, NY 10110
                             Attention:  Gary Brown

      9.5 GOVERNING  LAW. This  Agreement  shall be governed by and construed in
accordance with the domestic laws of the State of New York without giving effect
to any choice or conflict of law  provision or rule (whether of the State of New
York or any other  jurisdiction) that would cause the application of the laws of
any jurisdiction other than the State of New York.

      9.6 AMENDMENTS AND WAIVERS. This Agreement may be amended o waived only in
a writing  signed by the party  against  which  enforcement  of the amendment or
waiver is sought.

      9.7 SURVIVAL OF REPRESENTATIONS  AND WARRANTIES.  The  representations and
warranties  set forth in Sections 3 and 4 of this  Agreement  shall  survive the
Closing and continue in full force and effect for a period of one year after the
Closing.

                                      -21-
<PAGE>

      9.8 CONSTRUCTION. The parties have participated jointly in the negotiation
and drafting of this Agreement.  In the event an ambiguity or question of intent
or  interpretation  arises,  this  Agreement  shall be  construed  as if drafted
jointly  by the  parties  and no  presumption  or  burden of proof  shall  arise
favoring  or  disfavoring  any party by virtue of the  authorship  of any of the
provisions of this  Agreement.  Any reference to any federal,  state,  local, or
foreign  statute  or law  shall  be  deemed  also  to  refer  to all  rules  and
regulations promulgated thereunder,  unless the context requires otherwise.  The
word "including" shall mean including without limitation.

      9.9  COUNTERPARTS.  This  Agreement  may  be  executed  in any  number  of
counterparts,  each of  which  shall  be  deemed  an  original  but all of which
together  will  constitute  one and the same  document.  This  Agreement  may be
executed by facsimile.

      9.10 ENTIRE AGREEMENT. This Agreement (including the Schedules referred to
in and/or attached to this Agreement) constitutes the entire agreement among the
parties and supersedes any prior understandings,  agreements, or representations
by or among the parties, written or oral to the extent they relate in any way to
the subject matter of this Agreement.

      9.11  ARBITRATION.  Any controversies or claims arising out of or relating
to this  Agreement  shall  be  fully  and  finally  settled  by  arbitration  in
accordance  with the Commercial  Arbitration  Rules of the American  Arbitration
Association (the "AAA Rules"),  conducted by three arbitrators (one to be chosen
by K2,  one to be  chosen  by NCSI,  and the third to be chosen by the first two
arbitrators,  or otherwise chosen in accordance with the AAA Rules) in New York,
New York,  except that the parties shall have any right to discovery as would be
permitted  by the  Federal  Rules of  Civil  Procedure  for a period  of 90 days
following the commencement of such arbitration, and the arbitrator shall resolve
any dispute which arises in connection with such discovery. The prevailing party
or  parties,  as  determined  by the  arbitrators,  shall be  entitled to costs,
expenses  and  attorneys'  fees from the  non-prevailing  party or parties,  and
judgment upon the award  rendered by the  arbitrator may be entered in any court
of competent jurisdiction.

      9.15 COSTS AND EXPENSES OF TRANSACTION.

            9.15.1  NCSI  shall  be  responsible  for  payment  of all  expenses
associated with this  transaction,  including all the legal fees and expenses of
K2, including  without  limitation,  all public company costs of K2, and all SEC
and Blue Sky filing expenses and costs.

                                      -22-
<PAGE>

      9.16 BROKERS.

            9.16.1  Neither  K2 nor NCSI has dealt  with any broker or finder in
connection with this transaction. NCSI shall indemnify and hold K2 harmless from
and against any liability for these or any fees of any other broker.

      9.17  RELEASE  AND  INDEMNITY.  Each of K2 NCSI and  Avante  (on behalf of
themselves and their respective  affiliates) hereby releases each other from and
against all obligations,  liabilities,  lawsuits,  damages, claims and rights of
action, whether known or unknown, contingent or otherwise,  relating to directly
or indirectly,  K2 and/or NCSI or Avante and their  respective  affiliates,  the
merger transaction or their respective business or operations. Each of K2 on the
one  hand,  and NCSI and  Avante,  on the  other,  agree to  indemnify  and hold
harmless  each other from and against any  obligations,  liabilities,  lawsuits,
damages, claims and rights of action, including any legal or litigation fees and
expenses relating thereto, which either are the subject of the foregoing release
or  otherwise  relate to K2 or NCSI and Avante the merger  transaction  or their
respective business or operation.

      IN WITNESS  WHEREOF,  the Parties  hereto have caused this Agreement to be
executed as of the date first listed above.

K2 DIGITAL, INC.                         NEW CENTURY STRUCTURES, INC.

By: /s/ Gary Brown                       By: /s/ Joseph Sorci
    ---------------------------------        ------------------------------
Name:  Gary Brown                        Name:  Joseph Sorci
Title: President                         Title: Chief Executive Officer

K2 ACQUISITION, INC.                     AVANTE HOLDING GROUP, INC.

By: /s/ Gary Brown                           By: /s/ Michael W. Hawkins
    ---------------------------------        ------------------------------
Name:  Gary Brown                        Name:  Michael W. Hawkins
Title: President                         Title: President

                                      -23-
<PAGE>

                                  SCHEDULE 1.3

                Options and Warrants of NCSI at February 28, 2007

Name and Address of                Option/Warrant           Exercise/Conversion
Option and Warrant Holder                Term                      Price
-------------------------          --------------           -------------------

                                     -NONE-

<PAGE>

                                  SCHEDULE 1.4

                         K2 Options at February 28, 2007

Name and Address of
   Option Holder                   Term of Option              Exercise Price
-------------------------          --------------           -------------------

                                    [TO COME]

                                      -25-
<PAGE>

                                 SCHEDULE 3.5(b)

                            AMENDED CAPITAL STRUCTURE

                                      Pre- Closing    Post-Closing        %(1)
                                       ------------   ------------      -------

K2 Common Stock                           4,982,699        498,270(2)        10%

Series A Preferred(3)                     1,000,000        150,000(2)     3.010%

NCSI Common Stock                                --      4,334,429       86.990%

                                       ------------   ------------      -------
                  TOTAL                          --      4,982,699          100%
                                       ============   ============      =======

---------------
(1) Approximate

(2) Reflects 1 for 10 reverse stock split

(3) Preferred stock to be converted at Closing

                                      -26-
<PAGE>

                                  SCHEDULE 3.6

                        NCSI Audited Financial Statements

                                      -27-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.

                 For the Years Ended December 31, 2005 and 2006

                                      -28-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                                  Balance Sheet
                                  December 31,

                                     ASSETS

                                                        2006             2005
                                                     ----------       ----------
Current Assets
  Cash                                               $  458,652       $   80,777
  Accounts Receivable, Net                              385,098          359,950
  Prepaid Expenses                                       20,473               --
                                                     ----------       ----------
     Total Current Assets                               864,223          440,727
                                                     ----------       ----------
Property, Plant and Equipment, Net                      620,046          142,091
                                                     ----------       ----------
Total Assets                                         $1,484,269       $  582,818
                                                     ==========       ==========

                 See accompanying notes to financial statements.

                                      -29-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                                  Balance Sheet
                                  December 31,

                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                               2006           2005
                                                                            -----------    -----------
<S>                                                                         <C>            <C>
Current Liabilities
   Notes Payable, Current Portion                                           $ 1,257,924    $   824,328
   Accounts Payable and Accrued Expenses                                        688,842      2,092,629
   Accrued Payroll and Taxes                                                    234,656          7,509
   Billings in Excess of Costs and Estimated Earnings on
Uncompleted Contracts                                                           650,771             --
                                                                            -----------    -----------
        Total Current Liabilities                                             2,832,193      2,924,466
                                                                            -----------    -----------
Noncurrent Liabilities
   Notes Payable, Noncurrent Portion                                            442,265         68,365
                                                                            -----------    -----------
        Total Noncurrent Liabilities                                            442,265         68,365
                                                                            -----------    -----------
        Total Liabilities                                                     3,274,457      2,992,831
                                                                            -----------    -----------
Stockholders' Equity (Deficiency)
   Preferred Stock
   Series A convertible preferred stock, voting, $.01 par value,
     1,000,000 shares authorized, 1,000,000 shares issued and outstanding        10,000             --
   Series B convertible preferred stock, voting, $.315 par
     value, 1,000,000 shares  authorized, 606,944 shares issued and
     outstanding                                                                191,794             --
   Series C convertible preferred stock, voting, $.555 par value,
     100,000 shares authorized, 90,000 shares issued or outstanding              50,000             --
   Series D convertible preferred stock, voting, $.665 par value,
     500,000 shares authorized, 424,225 shares issued or outstanding            282,000             --
   Common Stock
     $.01 par value, 30,000,000 shares authorized, 1,600,000 shares
     issued and outstanding                                                         485            325
   Subscription Receivable                                                          (57)            --
   Additional Paid-In Capital                                                   199,980             --
   Distributions                                                               (158,283)      (158,283)
   Accumulated Deficit                                                       (2,366,107)    (2,252,055)
                                                                            -----------    -----------
        Total Stockholders' Equity (Deficiency)                              (1,790,188)    (2,410,014)
                                                                            -----------    -----------
        Total Liabilities and Stockholders' Equity (Deficiency)             $ 1,484,269    $   582,818
                                                                            ===========    ===========
</TABLE>

                 See accompanying notes to financial statements.

                                      -30-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                             Statement of Operations
                         For the Year Ended December 31,

                                                2006            2005
                                             -----------    -----------

Sales                                        $ 6,678,617    $ 4,825,207

Cost of Sales                                  4,783,727      6,788,105
                                             -----------    -----------

    Gross Profit                               1,894,890     (1,962,898)

Operating Expenses                             1,440,797      1,026,861
                                             -----------    -----------

    Income From Operations                       454,093     (2,989,759)

Interest Expense                                 243,145         22,462
                                             -----------    -----------

    Income Before Extraordinary Item             210,948     (3,012,221)

Extraordinary Item - Theft                       325,000             --
                                             -----------    -----------

Net (Loss) After Extraordinary Item          $  (114,052)   $(3,012,221)
                                             ===========    ===========

                 See accompanying notes to financial statements.

                                      -31-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                 Statement of Stockholders' Equity (Deficiency)
                         For the Year Ended December 31,

<TABLE>
<CAPTION>
                                           Preferred     Preferred     Preferred     Preferred     Additional
                            Common           Stock -       Stock -      Stock -       Stock -       Paid-In
                             Stock         Series A       Series B     Series C      Series D       Capital     Distributions
                           -----------    -----------   -----------   -----------   -----------   -----------   -------------
<S>                        <C>            <C>           <C>           <C>           <C>           <C>           <C>
Balance, January 1, 2005   $       325    $        --   $        --   $        --   $        --   $        --   $    (158,283)
  Net (Loss)                        --             --            --            --            --            --              --
                           -----------    -----------   -----------   -----------   -----------   -----------   -------------
Balance, January 1, 2006   $       325    $        --   $        --   $        --   $        --   $        --   $    (158,283)
  Issuance of
common stock                       160             --            --            --            --       199,980              --
  Subscriptions
Receivable                         (57)            --            --            --            --            --              --
  Issuance of
Series A                            --         10,000            --            --            --            --              --
  Issuance of
Series B                            --             --       191,794            --            --            --              --
  Issuance of
Series C                            --             --            --        50,000            --            --              --
  Issuance of
Series D                            --             --            --            --       282,000            --              --
  Net (Loss)                        --             --            --            --            --            --              --
                           -----------    -----------   -----------   -----------   -----------   -----------   -------------
 Balance, December
      31, 2006             $       428    $    10,000   $   191,794   $    50,000   $   282,000   $   199,980   $    (158,283)
                           ===========    ===========   ===========   ===========   ===========   ===========   =============

<CAPTION>
                                             Total
                             Retained     Shareholders'
                            Earnings         Equity
                            (Deficit)     (Deficiency)
                           -----------    ------------
<S>                        <C>            <C>
Balance, January 1, 2005   $   760,166    $    602,208
  Net (Loss)                 (3,012,2)      (3,012,22)
                           -----------    ------------
Balance, January 1, 2006   $(2,252,055)   $ (2,410,013)
  Issuance of
common stock                        --         200,140
  Subscriptions
Receivable                          --             (57)
  Issuance of
Series A                            --          10,000
  Issuance of
Series B                            --         191,794
  Issuance of
Series C                            --          50,000
  Issuance of
Series D                            --         282,000
  Net (Loss)                  (114,052)       (114,052)
                           -----------    ------------
 Balance, December
      31, 2006             $(2,366,107)    $(1,790,18)
                           ===========    ============
</TABLE>

                 See accompanying notes to financial statements.

                                      -32-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                             Statement of Cash Flows
                         For the Year Ended December 31,

<TABLE>
<CAPTION>
                                                                2006           2005
                                                            -----------    -----------

<S>                                                         <C>           <C>
Cash Flows From Operating Activities:
Net (Loss)                                                  $  (114,052)   $(3,012,221)
Adjustments to Reconcile Net Loss to Net
  Cash Used By Operating Activities:
     Depreciation and Amortization                              114,430         12,683
  Decrease (Increase) In:
     Accounts Receivable, Net                                   (25,149)       986,007
     Inventories                                                     --         55,593
     Costs and estimated earnings in excess of billings
       on uncompleted contracts                                      --        551,720
     Prepaid Expenses and Other Current Assets                  (20,473)            --
  Increase (Decrease) In:
     Accounts payable, accrued expenses and taxes payable    (1,176,640)       632,245
     Costs and estimated billings in excess of billings
       on uncompleted contracts                                 650,771        178,923
                                                            -----------    -----------
       Net Cash Used By Operating Activities                   (571,113)      (595,050)
                                                            -----------    -----------
Cash Flows From Investing Activities:
     Acquisition of Property, Plant and Equipment              (592,385)      (142,137)
                                                            -----------    -----------
       Net Cash Used By Investing Activities                   (592,385)      (142,137)
                                                            -----------    -----------
Cash Flows From Financing Activities:
     Issuance of Common Stock                                   200,140             --
     Stock subscriptions receivable                                 (57)            --
     Issuance of Preferred Stock - Series A                      10,000             --
     Issuance of Preferred Stock - Series B                     191,794             --
     Issuance of Preferred Stock - Series C                      50,000             --
     Issuance of Preferred Stock - Series D                     282,000             --
     Distributions to Shareholders                                   --       (158,283)
     Issuance of Notes Payable and Lines of Credit              904,089
     Repayment of Notes Payable and Lines of Credit             807,496       (160,257)
                                                            -----------    -----------
       Net Cash Provided By Financing Activities              1,541,373        585,549
                                                            -----------    -----------
Net Increase in Cash                                            377,875       (151,638)
Cash at Beginning of Year                                        80,777        232,415
                                                            -----------    -----------
Cash at End of Period                                       $   458,652    $    80,777
                                                            ===========    ===========
</TABLE>

                                 See accompanying notes to financial statements.

                                      -33-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                          Notes to Financial Statements
                                December 31, 2006

--------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization and Operation

     New Century  Structures,  Inc.  ("NCSI") of Florida was incorporated in May
     2001 under the name of M3'T,  Inc. In July 2003,  the  Company  changed its
     name  to  New  Century   Structures,   Inc.  The  Company  was   originally
     incorporated  as an "S"  Corporation.  In 2006,  the Company filed with the
     Florida  Department  of  Revenue  to  change  its  filing  status  to a "C"
     Corporation.

     The company is authorized to issue up to 30,000,000  shares of common stock
     at no par value and up to 20,000,000  shares of Preferred.  On February 22,
     2006 the Company  authorized the distribution of 1,000,000 shares of Series
     A Preferred  Stock,  1,500,000  shares of Series B Preferred  Stock,  up to
     1,000,000  shares of Series C Preferred  Stock, and up to 500,000 shares of
     Series D Preferred Stock.

     The Company is in the business as a concrete  contractor,  specializing  in
     modular classroom and commercial building installation.

     Revenue Recognition

     The  Company  recognized  revenue on our  products in  accordance  with the
     Securities  Exchange  Commission (SEC) Staff  Accounting  Bulletin No. 104,
     (which superseded Staff Accounting  Bulletin No. 101) "Revenue  Recognition
     in Financial Statements".  Under these guidelines, revenue is recognized on
     sales transactions when all of the following exist:  persuasive evidence of
     an arrangement did exist, delivery of product has occurred, the sales price
     to the buyer is fixed or  determinable  and  collectibility  is  reasonably
     assured. We accrued a provision for estimated warranty work concurrent with
     revenue recognition.

     The Company has adopted Emerging Issues Task Force Issue 01-9,  "Accounting
     for Consideration  Given by a Vendor to a Customer (Including a Reseller of
     the Vendor's  Products)"  (EITF 01-9),  which became  effective  for fiscal
     years  beginning  after  December 15, 2001. We concluded  that EITF 01-9 is
     applicable to the accounting for our  cooperative  agreements  with certain
     customers,  as the  benefits  received  from  consideration  given to those
     customers  are  not  sufficiently   separable  from  the  revenue  derived.
     Accordingly,  all such  cooperative  expenses are recorded as reductions to
     revenues.

     Sales for the Company are generated from customer's  purchase orders and/or
     contracts.  The Company's work is performed  under cost-plus fee contracts,
     fixed price contracts, fixed-price contracts modified incentive and penalty
     provisions and on a time and material basis.

     The length of the Company's  contracts  varies,  but is typically less than
     one year.  Therefore,  assets and liabilities are classified as current and
     non-current  because the contract  related  items on the balance sheet have
     realization and liquidation periods ending within one year.

     Statement  of  Position  81-1  discusses   accounting  for  performance  of
     construction  contracts.  The use of the  percentage of  completion  method
     depends  on  our   ability  to  make   reasonable   dependable   estimates.
     Additionally, contracts executed by the Company and their customers include
     provisions that clearly specify the enforceable rights of our services that
     are provided and received by our customers.  Our estimates  assume that our
     customers  will  satisfy  their  obligations  under  the  contract  and our
     performance requirements will be completed.

                                      -34-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                          Notes to Financial Statements
                                December 31, 2006

--------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

     Inventories

     Inventories are valued at the lower of cost or market,  using the first-in,
     first-out  method.  The  Company  does not  maintain  an  inventory  as all
     materials ordered are delivered timely for use in work-in-progress.

     Cash and Cash Equivalents

     The Company  considers all highly liquid debt instruments  purchased with a
     maturity of three months or less to be cash equivalents.

     Accounts Receivables

     Accounts  receivables  are  uncollateralized  customer  obligations due for
     products  constructed.  The accounts  receivable are due under normal trade
     terms  requiring  payment within 30 days from the invoice date.  Management
     reviews   accounts   receivable  to  determine  if  any  receivables   will
     potentially   be   uncollectible   and  any  balances   determined   to  be
     uncollectible are written off. Although no assurance can be given as to the
     collectibles  of  the  accounts   receivable,   based  on  the  information
     available, management believes all balances are collectible.

     Depreciation

     Depreciation  of property and equipment  are provided on the  straight-line
     method over the following estimated useful lives:

                                            Years
         Transportation Equipment              5
         Facility                             20
         Construction Equipment                5
         Heavy Equipment                       7
         Computer Equipment                    3
         Office Equipment                      5
         Capital Improvements                  5

     When assets are retired or otherwise  disposed of, the cost and accumulated
     depreciation are removed from the accounts,  and any resulting gain or loss
     is reflected in income for the period.  The cost of maintenance and repairs
     is  charged  to  income  as  incurred,   whereas  significant  renewals  or
     betterments are capitalized.

     Long-Lived Assets

     Long-lived  assets are evaluated for  impairment  when events or changes in
     circumstances  indicate  that the carrying  amount of the assets may not be
     recoverable  through the estimated  undiscounted future cash flows from the
     used of these assets.  When any such impairment  exists, the related assets
     will be written  down to fair value.  No such  impairment  existed  through
     December 31, 2006.

                                      -35-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                          Notes to Financial Statements
                                December 31, 2006

--------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

     Use of Estimates

     The  preparation  of financial  statements  in  conformity  with  generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that affect the reported amounts of assets and liabilities and
     disclosure  of  contingent  assets  and  liabilities  at  the  date  of the
     financial  statements  and the  reported  amounts of revenues  and expenses
     during  the  reported  period.  Actual  results  could  differ  from  those
     estimates.

     Concentration of Risk

     Financial   instruments  which   potentially   subject  the  Company  to  a
     concentration  of  credit  risk  consist   principally  of  temporary  cash
     investments and accounts receivable.

     The  Company  places  its  temporary  cash   investments   with   financial
     institutions insured by the FDIC.

     Concentrations of credit risk with respect to trade receivables are limited
     due to the diverse  group of  customers  to whom the  Companies  sell.  The
     Company has not  established an allowance for doubtful  accounts as none is
     considered  necessary,  based  upon  factors  such  as the  credit  risk of
     specific customers,  historical trends, other information and past bad debt
     history which has been  immaterial  and within the Company's  expectations.
     The Company is not  dependent on a limited  number of suppliers  related to
     its  manufacturing  as there are  numerous  suppliers  to provide  adequate
     supplies for constructing.

     Income Taxes

     The Company  computes  deferred  income taxes in accordance  with Financial
     Accounting Standards Board Statement No. 109 (SFAS No. 109) "Accounting for
     Income  Taxes." The provision  includes  taxes  currently  payable plus the
     deferred tax effect of temporary timing differences in financial  statement
     and income tax reporting.  The principal  differences in timing between the
     income statement and taxable income involve depreciation  expenses recorded
     under the straight-line  method in the income statements and by accelerated
     methods for tax purposes, the timing of the franchise tax deduction and the
     expensing  of bad debt.  The  differences  between  income tax expenses and
     taxes  currently  payable are  reflected  in deferred  tax  accounts in the
     consolidated  balance sheet.  Because of the Company's  historical earnings
     history and the going concern problem,  the net deferred tax asset has been
     fully offset by a 100% valuation allowance.

     Fair Value of Financial Instruments

     The carrying  amounts of  financial  instruments,  including  cash and cash
     equivalents,  accounts receivable,  and accounts payable,  approximate fair
     value  because of the current  nature of these  instruments.  The  carrying
     amounts of debt instruments  approximate fair value based upon the terms of
     the instruments. The fair value of the loans due to and from affiliates and
     shareholders are difficult to estimate due to their related party nature.

                                      -36-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                          Notes to Financial Statements
                                December 31, 2006

--------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

     Going Concern Uncertainty

     The accompanying financial statements have been prepared in conformity with
     generally accepted accounting principles which contemplate  continuation of
     the Company as a going  concern.  At  December  31,  2006,  the Company had
     negative working capital of $1,967,970.  However, a substantial  portion of
     the current notes payable are with a significant shareholder of the Company
     and are convertible into equity.  Additionally,  and subsequent to December
     31, 2005,  the Company is operating at a profit.  Realization of the assets
     of the  Company  is  dependent  upon  the  Company's  ability  to meet  its
     financing requirements and the continued success of future operations.  The
     financial   statements   do  not  include   adjustments   relating  to  the
     recoverability   and   classification   of  recorded   asset   amounts  and
     classification of liabilities that might be necessary should the Company be
     unable to continue in existence.

     In May 2005, the FASB issued  Statement of Financial  Accounting  Standards
     No. 154,  "Accounting  Changes and Error Corrections" (SFAS No. 154), which
     is  effective  for  accounting  changes and  corrections  of errors made in
     fiscal years  beginning  after  December  15,  2005.  SFAS 154 replaces APB
     Opinion No. 20, "Accounting  Changes," and FASB Statement No. 3, "Reporting
     Accounting  Changes in  Interim  Financial  Statements,"  and  changes  the
     requirements for the accounting for and reporting of a change in accounting
     principle.  SFAS 154 requires  retrospective  application to prior periods'
     financial  statements  of changes  in  accounting  principle,  unless it is
     impracticable to do so, in which case other alternatives are required. SFAS
     154 is effective for accounting  changes and  corrections of errors made in
     fiscal years beginning after December 15, 2005, or for the Company's fiscal
     2006.  The Company is  evaluating  the effect that the adoption of SFAS No.
     154 will have on its results of operations and financial position, but does
     not believe it will have a material impact.

     In April 2005,  the SEC announced that companies may implement SFAS 123R at
     the  beginning of their next fiscal year.  In March 2005,  the SEC released
     SEC Staff Accounting Bulletin No. 107, "Share-Based Payment" (SAB 107). SAB
     107 provides the SEC staff's  position  regarding the  application  of SFAS
     123R,  which  contains  interpretive  guidance  related to the  interaction
     between SFAS 123R and certain SEC rules and regulations,  and also provides
     the  staff's  views   regarding  the  valuation  of   share-based   payment
     arrangements  for public  companies.  SAB 107  highlights the importance of
     disclosures  made  related  to  the  accounting  for  share-based   payment
     transactions. The Company is currently reviewing the effect of SAB 107, but
     it does not  believe SAB 107 will have a material  impact on its  financial
     position, results of operations or cash flows.

     In March 2005, the FASB issued FASB  Interpretation No. 47, "Accounting for
     Conditional Asset Retirement  Obligations"  ("FIN 47"), which clarifies the
     term "conditional  asset retirement  obligations" as used in FASB Statement
     No. 143, "Accounting for Asset Retirement  Obligations." FASB Statement No.
     143 refers to an entity's legal  obligation to perform an asset  retirement
     activity in which the timing and/or method of settlement are conditional on
     a future event that may or may not be within the control of the entity.  If
     an entity  can  reasonably  estimate  a  liability  for the fair value of a
     conditional  asset  retirement  obligation,   the  entity  is  required  to
     recognize the fair value of the liability when incurred. A company normally
     incurs this liability upon acquisition, construction, or development of the
     asset at issue.  FIN 47 is effective for fiscal years ending after December
     15,  2005.  The Company is currently  reviewing  FIN 47, and at the current
     time it does not  believe  that FIN 47 will have a  material  impact on its
     financial position, results of operations or cash flows.

                                      -37-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                          Notes to Financial Statements
                                December 31, 2005

--------------------------------------------------------------------------------
NOTE 2 - PREPAID EXPENSES

     The Company has prepaid  expenses of $20,473 as of December 31,  2006.  The
     amount represents  insurance  payments and other amounts for various future
     expenses.

NOTE 3 - PROPERTY AND EQUIPMENT

     Property  and  equipment  is  summarized  for December 31, 2006 and 2005 as
follows:

                                                  2006           2005
                                             ------------     -----------
      Facility and improvement               $    128,298     $         0
      Machinery and equipment                     347,971          28,160
      Heavy equipment                             228,681         107,156
      Vehicles and trailers                        10,000               0
      Computer Equipment                              450             450
      Furniture and fixtures                       25,773          20,994
                                             ------------     -----------
                                                  741,173         156,760
      Less Accumulated Depreciation              (121,127)        (14,669)
                                             ------------     -----------
      Property, Plant, and Equipment, Net    $    620,046     $   142,091
                                             ============     ===========

     Depreciation  expense was $114,430 and 12,683 for the years ended  December
31, 2006 and 2005, respectively.

NOTE 4 - NOTES PAYABLE

     Notes payable at December 31, 2006 and 2005,  respectively,  consist of the
following:

<TABLE>
<CAPTION>
                                                                                 2006         2005
<S>                                                                          <C>           <C>
     Avante Holding Group, Inc., revolving credit, principal and
     interest at prime plus 4%.  Due July 2007                               $  551,129     $  265,794

     Regions Bank, line of credit, principal and interest at prime
     rate.  Interest only monthly payments.  Due February 2007.                 499,337        480,000

     Caterpillar Financial Services Corporation, principal and
     interest at 2.8%.  Monthly payments of $1,018.49.  Due July
     2008.  Note is collateralized by Caterpillar Excavator.  The
     amount is guaranteed by Joseph Sorci.                                       18,979         30,507

     Caterpillar Financial Services Corporation, principal and
     interest at 3.92%.  Monthly payments of $1,616.61.  Due July
     2009.  Note is collateralized by Caterpillar Telescopic Handler.
     The amount is guaranteed by Joseph Sorci.                                   50,692         66,392

     Bank of America, line of credit, interest only payments at 11.75%.
     Due February 2013.  The amount is guaranteed by Joseph Sorci.               00,000              0

     Wells Fargo, principal and interest at 7.99%.  Due September
     2011.  Note is collateralized by 2007 Phoenix Glider cement truck.
     The amount is guaranteed by Michael Hawkins.                                99,112              0
</TABLE>

                                      -38-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                          Notes to Financial Statements
                                December 31, 2006

NOTE 4 - NOTES PAYABLE (continued)

<TABLE>
<CAPTION>
<S>                                                                          <C>            <C>
     Hilliman Group, principal with no interest.  Due May 2006.                       0         50,000

     Weaver Precast of Florida, LLC, promissory note and interest at
     5% interest. Monthly payments of $10,767.67.  Due December 2009.           340,691              0
                                                                             ----------     ----------
                                                                              1,659,940        892,693

         Current Portion                                                      1,217,675        824,328
                                                                             ----------     ----------
         Notes Payable, Long Term                                            $  442,265     $   68,365
                                                                             ==========     ==========
</TABLE>

NOTE 5 - COMMITMENTS

     The  Company  leases the  property  where its  manufacturing  operation  is
     located. The lease expires in December 31, 2007. Monthly lease payments are
     $4,000.00.

Future minimum obligations for the above lease are as follows:

<TABLE>
<CAPTION>
     December 31,
<S>                                                                          <C>
     2007                                                                    $   48,000
                                                                             ----------

         Total Minimum Lease Obligations                                     $   48,000
                                                                             ==========
</TABLE>

NOTE 6 - RELATED PARTIES

     Michael  W.  Hawkins,  a Director  and Vice  President  of Finance  for the
     Company,  is also CEO and principal  shareholder  for Avante Holding Group,
     Inc. ("Avante") and the Managing Member for GAMI, LLC ("GAMI").  Avante and
     GAMI each hold  various  amounts  of shares of the  Company.  Mr.  Hawkins,
     through the issuance of stock to various  companies  controlled by himself,
     owned  approximately  42.2% of the Common Stock issued, 25% of the Series A
     Preferred  Stock,  100% of the Series B Preferred Stock, 0% of the Series C
     Preferred Stock and 28.4% of the Series D Preferred Stock.

     NCSI  has  contracted  with  Avante  for  certain  investment  banking  and
     consulting  services to be provided pursuant to two agreements between NCSI
     and Avante.

     NCSI and Avante  entered into a Consulting  Agreement on January 1, 2006 to
     provide  corporate  guidance and  financial  and  accounting  services.  As
     compensation,  Avante  receives  $10,000 per month and bonus  compensation.
     Under this agreement Avante has the unilateral authority to hire additional
     personnel required to perform investor relations, financial administration,
     and  executive   oversight  and  request   reimbursement  from  NCSI  on  a
     reimbursable  expense basis.  The term of this agreement is for three years
     with one additional automatic three-year extension.

     On May 31, 2005, NCSI and Avante entered into a Revolving  Credit Agreement
     for $500,000.  The terms of the Agreement  includes interest at the rate of
     prime plus 4%. The  Agreement  terminates on May 31, 2006 with an available
     extension  of one year at the  discretion  of the Lender.  On May 31, 2006,
     Avante  renewed the  agreement  for one year. An Amendment to the Agreement
     was executed in December 2006 providing an additional $500,000 credit for a
     total of  $1,000,000.  As of December 31,  2006,  the balance due to Avante
     under this Agreement was $551,028.

                                      -39-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                          Notes to Financial Statements
                                December 31, 2006

--------------------------------------------------------------------------------
NOTE 6 - RELATED PARTIES (continued)

     Michael W.  Hawkins  has  personally  guaranteed  several  obligations.  In
     addition to the various  notes  identified  above,  he has also  personally
     guaranteed  the Company  note payable  balance with Wells Fargo  associated
     with the financing of a cement truck.

     On July 1, 2006, GAMI contracted with ProSteel Builders Corporation ("PSB")
     for  the  construction  of a  new  office  building  for  GAMI  located  in
     Melbourne,  Florida.  PSB  subcontracted  a portion of the  construction to
     NCSI. The full contract value with PSB is $1,200,000.  The contract between
     PSB and NCSI is $840,000. The contract and all related activities were done
     as an arms length transaction.

     Joseph  Sorci,  the  CEO  for  the  Company,  is  also  CEO  and  principal
     shareholder for Florida  Architects,  Inc.  ("FLA").  FLA performs  various
     architectural  roles  for  the  Company  in  conjunction  with  evaluating,
     bidding,  planning  and actual  building  of the  Company's  projects.  All
     transactions are conducted as an arms length transaction.

     Joseph Sorci has personally  guaranteed  several  obligations with vendors,
     banks and other business related entities.  The primary guarantees are with
     Regions Bank, Weaver Precast, Inc. and other notes payable.

NOTE 7 - INCOME TAXES

     A  reconciliation  of income tax computed at the statutory  federal rate to
income tax expense (benefit) is as follows:
                                                               December
                                                               31, 2006

     Tax provision at the statutory rate of 35%               ($39,918)

     State income taxes, net of federal income tax                   -
     Change in valuation allowance                               39,918
                                                              ---------

     Total                                                    $       0
                                                              =========

     The tax  effects of  temporary  differences  that give rise to  significant
     portions  of the  deferred  tax assets and  deferred  tax  liabilities  are
     presented below:

                                                               December
                                                               31, 2006

     Deferred tax assets:
     Net operating loss carryforward                          $114,052
                                                              ========

     Total deferred tax assets                                $ 39,918
     Less valuation allowance                                  (39,918)
                                                              --------

     Total net deferred tax assets                            $      0
                                                              ========

                                      -40-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                          Notes to Financial Statements
                                December 31, 2006

--------------------------------------------------------------------------------
NOTE 7 - INCOME TAXES (continued)

     In assessing the realizability of deferred tax assets, management considers
     whether it is more likely than not that some portion or all of the deferred
     tax assets will not be realized.  The ultimate  realization of deferred tax
     assets is dependent upon the generation of future taxable income during the
     periods in which those temporary differences become deductible.  Management
     considers the  scheduled  reversal of deferred tax  liabilities,  projected
     future  taxable   income  and  tax  planning   strategies  in  making  this
     assessment.

     Prior to 2006, the Company was a S Corporation  therefore there were no net
operating loss carryforwards.

     Because of the historical earnings history of the Company, the net deferred
     tax  assets  have been  fully  offset by a 100%  valuation  allowance.  The
     valuation  allowance  for the net  deferred  tax assets  was  approximately
     $39,918 as of December 31, 2006.

     At December  31,  2006,  the Company had net  operating  loss  carryforward
     available for U.S. tax purposes of $114,052.  The  carryforward  expires in
     2026.

NOTE 8 - COMPANY STOCK

     Effective  February 22, 2006, the Board of Directors  approved the issuance
     of common stock as agreed upon with Avante.  The actual  allocation  of the
     stock was at the directive of Avante.

     The Series A Preferred Stock was issued to various  individuals and GAMI in
     conjunction  with the use of  personal  guarantees  and/or  other  forms of
     guarantees.

     The Series B Preferred  Stock was issued to Avante in conjunction  with the
     agreement between the Company and Avante.

     The Series C Preferred Stock was issued to an investor.

     The  Series  D  Preferred  Stock  was  issued  to  various   companies  and
     individuals in conjunction to the conversion of debt to stock.

NOTE 9 - STOCK OPTION PLAN AND WARRANTS

     The  Company  complies  with  Accounting  Principles  Board  (APB)  No.  25
     "Accounting  for Stock Issued to Employees" in accounting for stock options
     issued to employees. Stock options are granted with an exercise price equal
     to the fair market value on the date of grant. Accordingly, no compensation
     expense has been recognized for options issued to employees.

     Options  granted under the 2006 incentive stock option plan are exercisable
     at the exercise  price of grant and,  subject to termination of employment,
     expire February 6, 2016, are not transferable other than on death, and vest
     in four unequal  annual  installments  commencing at various times from the
     date of grant. A summary of the Company's  stock option plan as of December
     31, 2006 is presented below:

                                      -41-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                          Notes to Financial Statements
                                December 31, 2006

NOTE 9 - STOCK OPTION PLAN AND WARRANTS (continued)

                                                      2006
                                               -------------------
                                                          Weighted
                                                           Average
                                                          Exercise
                                                Shares     Price
                                               --------   --------
Outstanding at the beginning of the year       2,000,000      1.00

Granted                                              --         --

Forfeited                                            --         --

Exercised                                            --         --
                                               --------

Outstanding at the end of the period           2,000,000      1.00
                                               ========          =

Options exercisable at the end of the period          0
                                               ========

     There are currently  2,000,000 unissued options under the 2006 Stock Option
Plan.

     The following table summarizes information for stock options outstanding at
December 31, 2006:

                     Options Outstanding                  Options Exercisable
           ------------------------------------- ------------------------------
                           Weighted-     Weighted-                     Weighted-
              Number        Average       Average        Number         Average
Exercise   Outstanding     Remaining     Exercise      Exercisable      Exercise
 Prices     @ 12/31/06     in years        Price       @ 12/31/06        Price

  1.00      2,000,000                      1.00             0             .00

     The Company  issued  500,000  warrants on February 6, 2006 of which 200,000
     warrants were  exercised as of December 31, 2006.  The  exercised  warrants
     were at a $1.00  conversion  rate. These were funded through the conversion
     of debt.

                                      -42-
<PAGE>

                          NEW CENTURY STRUCTURES, INC.
                          Notes to Financial Statements
                                December 31, 2006

--------------------------------------------------------------------------------
NOTE 10 - SUBSEQUENT EVENTS

     On January 31, 2007, K2 Digital,  Inc. ("K2") filed a Form 8-K with the SEC
     disclosing  that on January 29, 2007, K2 and NCSI signed a letter of intent
     whereby NCSI will merge with K2. K2  Acquisition  Corp. was formed to merge
     with NCSI. In connection  with the merger,  the  shareholders  of NCSI will
     acquire a controlling interest in K2. NCSI's designees will be appointed as
     directors  of K2 and the  Board  and  shareholders  will  approve  a 10 x 1
     reverse  split of K2 shares  such that the current  shareholders  of K2 own
     approximately  500,000  post  merger  shares  representing  10% of the post
     merger shares issued and outstanding.  In connection with this transaction,
     Avante has entered  into an agreement  with NPOWR  Digital  Media,  Inc. to
     acquire  1,000,000  shares of K2 preferred stock which is convertible  into
     1,500,000  common  shares.   The  parties  anticipate  closing  the  merger
     transaction  during K2's second fiscal quarter.  The transaction is subject
     to the normal conditions for closing,  including satisfactory due diligence
     by the parties.

     In January  2007,  the  Company  determined  that four  individuals  of the
     Company  had  stolen  various  inventory  items,  tools  and  subcontractor
     services.  The Company,  in full  cooperation  with the local  authorities,
     recovered all stolen properties. During the investigation it was determined
     that  fraudulent  timecards and mileage  reports had been  submitted to the
     Company,  as well as the misuse of inventory supplies for personal gain had
     transpired.  The Orange County  Sheriff's  office has forwarded the case to
     the State of Florida  District  Attorney's  Office where it has recommended
     Grand Larceny charges to be filed against the four individuals. The Company
     has reserved the right to pursue Civil Action against the four  individuals
     at some point in the future.  At this time, the Company is uncertain of the
     actual  dollars  lost due to employee  paid time and any other work related
     products and/or services.  Management has performed  preliminary  estimates
     based on the time period  associated  with the theft and the contract,  The
     First  Academy that was being  completed  during this time. It is estimated
     that the financial  impact could have been up to $650,000.  Management  has
     opted to record a conservative estimate of 50% of the current valuation and
     record  $325,000  as  an  extraordinary   item  on  the  income  statement.
     Management  has  reevaluated  its  internal  controls and  implemented  new
     procedures to eliminate the potential for future frauds.

                                      -43-
<PAGE>

                                  SCHEDULE 4.5

                 K2 Registered Shareholders at February 28, 2007

Name and Address of Registered Shareholder                    Shares Owned

--------------------------------------------------------------------------------
                                                                 4,982,699
--------------------------------------------------------------------------------

                                    [TO COME]

<PAGE>

                                  SCHEDULE 4.14

                           K2 Affiliates Transactions

                                     -NONE-

<PAGE>

                                  SCHEDULE 4.22

                                K2 Bank Accounts

                                     UBS AG
                                 54 STATE STREET
                              SUITE 1000/10TH FLOOR
                                ALBANY, NY 12207
                             Contact: John E. Daley
                                  800-255-3400

<PAGE>

                                  SCHEDULE 4.24

                  K2 Financial Statements at December 31, 2006

      Incorporated  by reference  from Form 10KSB as filed with the SEC on March
30, 2007.

<PAGE>

                                 SCHEDULE 3.5(a)

                     NCSI Shareholders at February 28, 2007

Name and Address of Shareholder                                 Shares Owned

                                    [TO COME]

                                                               -----------------
     TOTAL:                                                        6,021,169

<PAGE>

                                  SCHEDULE 3.12

                           NCSI Affiliate Transactions

                                     -NONE-Exhibit
      4.1

    AMENDMENT
      NO. 1 

    TO
      THE

    POOLING
      AND SERVICING AGREEMENTS

    

    Amendment
      No. 1, dated as of April 24, 2007 (the “Amendment”),
      to
      the Pooling and Servicing Agreements (the “Agreements”)
      listed
      on Schedule I hereto, each among NovaStar Mortgage Funding Corporation (the
      “Depositor”),
      NovaStar Mortgage, Inc., as sponsor and servicer (the “Sponsor”
or
      “Servicer”),
      U.S.
      Bank National Association, as custodian (the “Custodian”),
      and
      Deutsche Bank National Trust Company, as trustee (the “Trustee”).
      Capitalized terms used and not defined herein shall have the meaning set forth
      in the Agreements and Appendix A thereto.

     

    WHEREAS,
      the parties hereto have entered into the Agreements; 

     

    WHEREAS,
      the purpose of this Amendment is to cure certain ambiguities in the wording
      of
      each Agreement.

     

    NOW,
      THEREFORE, in consideration of the promises and mutual agreements contained
      herein, the parties hereto agree to amend the Agreements pursuant to Section
      12.01 thereof as follows:

     

    
      	 	
              1.

            	
              Revised
                Section 4.04(c).

            

    

     

    Section
      4.04(c) of each Agreement is hereby amended so as to read as set forth in
      Exhibit A hereto with respect to the related Agreement.

     

    
      	 	
              2.

            	
              Revised
                Definition of “Non-Derivative Supplemental Interest
                Payment”.

            

    

     

    The
      definition of the term “Non-Derivative Supplemental Interest Payment” is hereby
      amended so as to read as set forth in Exhibit B hereto with respect to the
      related Agreement

     

    
      	 	
              3.

            	
              Revised
                Section (g) footnote (2) to Exhibit J for 2006-4.

            

    

     

    With
      regard to the first Agreement on the attached Schedule I only, Section (g)
      footnote (2) is hereby amended and restated in its entirety as
      follows:

     

    “The
      Class M-7 DSI Certificates, the Class M-10 DSI Certificates, the Class M-11
      DSI
      Certificates and the Class M-12 DSI Certificates do not represent regular
      interests in the Master REMIC or any other REMIC created under the Pooling
      and
      Servicing Agreement.”

     

    
      	 	
              4.

            	
              Condition
                to Effectiveness.
                

            

    

     

    As
      a
      condition to the effectiveness of this Amendment, an Opinion of Counsel
      satisfying the requirements of Section 12.01 of each Agreement has been received
      by the parties hereto. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              5.

            	
              Effect
                of Amendment.
                

            

    

     

    This
      Amendment to the Agreements shall be effective and the Agreements shall be
      deemed to be modified and amended in accordance herewith retroactively to the
      original dates of each related Agreement. The respective rights, limitations,
      obligations, duties, liabilities and immunities of the Company, the Sponsor,
      the
      Servicer, the Custodian and the Trustee shall hereafter be determined, exercised
      and enforced subject in all respects to such modifications and amendments,
      and
      all the terms and conditions of this Amendment shall be and be deemed to be
      part
      of the terms and conditions of the Agreements for any and all purposes. The
      Agreements, as amended hereby, is hereby ratified and confirmed in all respects.
      

     

    
      	 	
              6.

            	
              The
                Agreements in Full Force and Effect as Amended.
                

            

    

     

    Except
      as
      specifically amended hereby, all the terms and conditions of the Agreements
      shall remain in full force and effect and, except as expressly provided herein,
      the effectiveness of this Amendment shall not operate as, or constitute a waiver
      or modification of, any right, power or remedy of any party to the Agreements.
      All references to the Agreements in any other document or instrument shall
      be
      deemed to mean the Agreements as amended by this Amendment. 

     

    
      	 	
              7.

            	
              Counterparts.
                

            

    

     

    This
      Amendment may be executed by the Parties in several counterparts, each of which
      shall be deemed to be an original and all of which shall constitute together
      but
      one and the same agreement. This Amendment shall become effective when
      counterparts hereof executed on behalf of such party shall have been received.
      

     

    
      	 	
              8.

            	
              Governing
                Law.
                

            

    

     

    This
      Amendment shall be construed in accordance with and governed by the laws of
      the
      State of New York applicable to agreements made and to be performed
      therein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Sponsor, the Servicer, the Depositor, the Trustee and
      the
      Custodian, have caused this Amendment to be duly executed by their officers
      thereunto duly authorized, all as of the day and year first above
      written.

     

    

    
      	
              NEWPORT
                FUNDING
                CORP. hereby consents to the foregoing Amendment:

               

              By: 
                /s/
                Doris J. Hearn            
Name:
                Doris J. Hearn
Title:
                Vice President

               

              GREENWICH
                CAPITAL FINANCIAL PRODUCTS, INC.,
                hereby consents to the foregoing Amendment:

               

              By: 
                /s/
                Ara Balabanian            
Name:
                Ara Balabanian
Title:
                Vice President

               

              WACHOVIA
                INVESTMENT HOLDINGS, LLC
                hereby consents to the foregoing Amendment:

               

              By: 
                /s/
                Andrew W. Riebe            
Name:
                Andrew W. Riebe
Title:
                Director

            	 	
              NOVASTAR
                MORTGAGE FUNDING CORPORATION,

              as
                Depositor

               

              By: 
                /s/
                Matt Kaltenrieder            
Name: Matt
                Kaltenrieder
Title: Vice
                President

               

              NOVASTAR
                MORTGAGE, INC.,

              as
                Servicer and as Sponsor

              
                 

                By: 
                  /s/
                  Matt Kaltenrieder            
Name: Matt
                  Kaltenrieder
Title: Vice
                  President

              

               

              U.S.
                BANK NATIONAL ASSOCIATION, as Custodian

               

              By: 
                /s/
                Sheryl Johnson            
Name:
                Sheryl Johnson
Title:
                Vice President

               

              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Trustee

               

              By: 
                /s/
                Mei Nghla                
Name:
                Mei Nghla
Title:
                Authorized Signer

               

            

    

    

    

    [Signature
      Page for Amendment No. 1 to the 2006-4, 2006-5 and 2006-6 Pooling and Servicing
      Agreements]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              ASPEN
                FUNDING
                CORP. hereby consents to the foregoing Amendment:

              
                 

                By: 
                  /s/
                  Doris J. Hearn            
Name:
                  Doris J. Hearn
Title:
                  Vice President

              

               

               

              DEUTSCHE
                BANK SECURITIES INC.
                hereby consents to the foregoing Amendment:

               

              By: 
                /s/
                Brian W. Haklisch          
Name:
                Brian W. Haklisch
Title:
                Vice President

               

              By: 
                /s/
                Michael Ciuffo            
Name:
                Michael Ciuffo
Title:
                Director

               

               

               

               

               

               

               

               

               

            	 

    

    [Signature
      Page for Amendment No. 1 to the 2006-4, 2006-5 and 2006-6 Pooling and Servicing
      Agreements]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      I

    

    
      	 	
              1.

            	
              Pooling
                and Servicing Agreement, dated as of August 1, 2006, by and among
                NovaStar
                Mortgage Funding Corporation, as Depositor, NovaStar Mortgage, Inc.,
                as
                Servicer and as Sponsor, U.S. Bank National Association, as Custodian
                and
                Deutsche Bank Trust Company, as Trustee, relating to NovaStar Mortgage
                Funding Trust, Series 2006-4, NovaStar Home Equity Loan Asset-Backed
                Certificates, Series 2006-4.

            

    

    

    
      	 	
              2.

            	
              Pooling
                and Servicing Agreement, dated as of September 1, 2006, by and among
                NovaStar Mortgage Funding Corporation, as Depositor, NovaStar Mortgage,
                Inc., as Servicer and as Sponsor, U.S. Bank National Association,
                as
                Custodian and Deutsche Bank Trust Company, as Trustee, relating to
                NovaStar Mortgage Funding Trust, Series 2006-5, NovaStar Home Equity
                Loan
                Asset-Backed Certificates, Series
                2006-5.

            

    

    

    
      	 	
              3.

            	
              Pooling
                and Servicing Agreement, dated as of November 1, 2006, by and among
                NovaStar Mortgage Funding Corporation, as Depositor, NovaStar Mortgage,
                Inc., as Servicer and as Sponsor, U.S. Bank National Association,
                as
                Custodian and Deutsche Bank Trust Company, as Trustee, relating to
                NovaStar Mortgage Funding Trust, Series 2006-6, NovaStar Home Equity
                Loan
                Asset-Backed Certificates, Series
                2006-6.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    Amended
      Section 4.04(c)

    

    2006-4

    (c)
      On
      each Distribution Date, the Trustee shall distribute the funds held in the
      Supplemental Interest Trust as follows: 

     

    (i) first,
      on each
      Distribution Date up to and including the Class I Termination Date, from funds
      other than funds relating to Excess Cashflow, and if such funds are
      insufficient, any Excess Cashflow remaining after the distributions set forth
      in
      Section 4.04(d)(i), to each Hedge Counterparty, its related Cap Amount for
      such
      Distribution Date, and any unpaid Hedge Termination Payment owed to a Hedge
      Counterparty that is not a Defaulted Hedge Termination Payment;

     

    (ii) second,
      from
      funds other than funds relating to Excess Cashflow, and if such funds are
      insufficient, any Excess Cashflow remaining after the distributions set forth
      in
      Section 4.04(d)(i), and after taking into account any amounts applied pursuant
      to clause (i) above, the amount necessary, if any, to eliminate any
      Overcollateralization Deficiency, after taking into account any Excess Cashflow
      previously applied to such purpose on such Distribution Date;

     

    (iii) third,
      any
      remaining amounts to pay:

     

    (a)
       first,
      pro-rata based on the Certificate Principal Balance of each Class of Class
      A
      Certificates, from funds other than funds relating to Excess Cashflow, and
      if
      such funds are insufficient, any Excess Cashflow remaining after the
      distributions set forth in Section 4.04(d)(i), and after taking into account
      any
      amounts applied pursuant to clauses (i) and (ii) above, the Supplemental
      Interest Payment for each Class of Class A Certificates (in each case only
      up to
      the amount necessary to pay any the related Supplemental Interest Amount Due);
      and 

     

    (b)
       second,
      in
      direct order of priority (i.e., commencing with the Class M-1 Certificates
      and
      ending with the Class M-12 Certificates), (1) to each Class of Mezzanine
      Certificates which is not a Reallocable Class, from funds other than funds
      relating to Excess Cashflow, and if such funds are insufficient, any Excess
      Cashflow remaining after the distributions set forth in Section 4.04(d)(i),
      and
      after taking into account any amounts applied pursuant to clauses (i) and (ii)
      above, or clause (iii)(a) above, the Supplemental Interest Payment for each
      Class of Mezzanine Certificates (in each case only up to the amount necessary
      to
      pay the related Supplemental Interest Amount Due); and (2) with respect to
      all
      or any portion of a Reallocable Class which has not previously been the subject
      of a Reallocation (a) the Supplemental Interest Payment otherwise allocated
      to
      the Class M-10 Certificates shall be distributed to the Class M-10N Certificates
      and shall be the Non-Derivative Supplemental Interest Payment for the Class
      M-10N Certificates, the Supplemental Interest Payment otherwise allocated to
      the
      Class M-11 Certificates shall be distributed to the Class M-11N Certificates
      and
      shall be the Non-Derivative Supplemental Interest Payment for the Class M-11
      Certificates and the Supplemental Interest Payment otherwise allocated to the
      Class M-12 Certificates shall be distributed to the Class M-12N Certificates
      and
      shall be the Non-Derivative Supplemental Interest Payment for the Class M-12
      Certificates, and (b) the Derivative Supplemental Interest Payment for the
      Class
      M-10 Certificates shall be paid to the Holders of the Class M-10 DSI
      Certificates, the Derivative Supplemental Interest Payment for the Class M-11
      Certificates shall be paid to the Holders of the Class M-11 DSI Certificates
      and
      the Derivative Supplemental Interest Payment for the Class M-12 Certificates
      shall be paid to the Holders of the Class M-12 DSI Certificates.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iv) fourth,
      from
      any remaining amounts, to the Hedge Counterparties to which such amounts are
      owed, pro
      rata,
      any
      Defaulted Hedge Termination Payments and any indemnity payments provided for
      in
      Part 5 of the Hedge Agreements; and

     

    (v) fifth,
      from
      any remaining amounts, to the Holders of the Class CB Certificates, an amount
      equal to the Class CB Interest Distributable Amount for such Distribution Date;
      and

     

    (vi) sixth,
      any
      remaining amounts, to the Holders of the Class CA Certificates.

     

    2006-5

    (c)
      On
      each Distribution Date, the Trustee shall distribute the funds held in the
      Supplemental Interest Trust as follows: 

     

    (i) first,
      on each
      Distribution Date up to and including the Class I Termination Date, from funds
      other than funds relating to Excess Cashflow, and if such funds are
      insufficient, any Excess Cashflow remaining after the distributions set forth
      in
      Section 4.04(d)(i), to each Hedge Counterparty, its related Cap Amount for
      such
      Distribution Date, and any unpaid Hedge Termination Payment owed to a Hedge
      Counterparty that is not a Defaulted Hedge Termination Payment;

     

    (ii) second,
      from
      funds other than funds relating to Excess Cashflow, and if such funds are
      insufficient, any Excess Cashflow remaining after the distributions set forth
      in
      Section 4.04(d)(i), and after taking into account any amounts applied pursuant
      to clause (i) above, the amount necessary, if any, to eliminate any
      Overcollateralization Deficiency, after taking into account any Excess Cashflow
      previously applied to such purpose on such Distribution Date;

     

    (iii) third,
      any
      remaining amounts to pay, pro-rata based on the Certificate Principal Balance
      of
      each Class of Class A Certificates and Mezzanine Certificates which is not
      a
      Reallocable Certificate, from funds other than funds related to Excess Cashflow,
      and if such funds are insufficient, any Excess Cashflow remaining after the
      distributors set forth in Section 4.04(d)(i), and after taking into account
      any
      amounts applied pursuant to clauses (i) and (ii) above, the Supplemental
      Interest Payment for each Class of Class A Certificates and Mezzanine
      Certificates (in each case only up to the amount necessary to pay the related
      Supplemental Interest Amount Due) and provided that with respect to all or
      any
      portion of a Reallocable Class which has not previously been the subject of
      a
      Reallocation (a) the Supplemental Interest Payment otherwise allocated to the
      Class M-10 Certificates shall be distributed to the Class M-10N Certificates
      and
      shall be the Non-Derivative Supplemental Interest Payment for the Class M-10
      Certificates, the Supplemental Interest Payment otherwise allocated to the
      Class
      M-11 Certificates shall be distributed to the Class M-11N Certificates and
      shall
      be the Non-Derivative Supplemental Interest Payment for the Class M-11
      Certificates and the Supplemental Interest Payment otherwise allocated to the
      Class M-12 Certificates shall be distributed to the Class M-12N Certificates
      and
      shall be the Non-Derivative Supplemental Interest Payment for the Class M-12
      Certificates, and (b) the Derivative Supplemental Interest Payment for the
      Class
      M-10 Certificates shall be paid to the Holders of the Class M-10 DSI
      Certificates, the Derivative Supplemental Interest Payment for the Class M-11
      Certificates shall be paid to the Holders of the Class M-11 DSI Certificates
      and
      the Derivative Supplemental Interest Payment for the Class M-12 Certificates
      shall be paid to the Holders of the Class M-12 DSI Certificates.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iv) fourth,
      from
      any remaining amounts, to the Hedge Counterparties to which such amounts are
      owed, pro
      rata,
      any
      Defaulted Hedge Termination Payments and any indemnity payments provided for
      in
      Part 5 of the Hedge Agreements; and

     

    (v) fifth,
      from
      any remaining amounts, to the Holders of the Class CB Certificates, an amount
      equal to the Class CB Interest Distributable Amount for such Distribution Date;
      and

     

    (vi) sixth,
      any
      remaining amounts, to the Holders of the Class CA Certificates.

     

    2006-6

    (c)
      On
      each Distribution Date, the Trustee shall distribute the funds held in the
      Supplemental Interest Trust as follows: 

     

    (i) first,
      on each
      Distribution Date up to and including the Class I Termination Date, from funds
      other than funds relating to Excess Cashflow, and if such funds are
      insufficient, any Excess Cashflow remaining after the distributions set forth
      in
      Section 4.04(d)(i), to each Hedge Counterparty, its related Cap Amount for
      such
      Distribution Date, and any unpaid Hedge Termination Payment owed to a Hedge
      Counterparty that is not a Defaulted Hedge Termination Payment;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii) second,
      from
      funds other than funds relating to Excess Cashflow, and if such funds are
      insufficient, any Excess Cashflow remaining after the distributions set forth
      in
      Section 4.04(d)(i), and after taking into account any amounts applied pursuant
      to clause (i) above, the amount necessary, if any, to eliminate any
      Overcollateralization Deficiency, after taking into account any Excess Cashflow
      previously applied to such purpose on such Distribution Date (provided, however,
      the amount paid pursuant to this Section 4.04(c)(ii) on any Distribution Date
      shall not exceed the excess of (A) the cumulative amount of Realized Losses
      from
      the Cut-Off Date through the last day of the related Payment Period over (B)
      the
      sum of all amounts paid pursuant to this Section 4.04(c)(ii) on all prior
      Distribution Dates);

     

    (iii) third,
      any
      remaining amounts to pay, pro-rata based on the Certificate Principal Balance
      of
      each Class of Class A Certificates and Mezzanine Certificates, which is not
      a
      Reallocable Certificate, from funds other than funds related to Excess Cashflow,
      and if such funds are insufficient, any Excess Cashflow remaining after the
      distributors set forth in Section 4.04(d)(i), and after taking into account
      any
      amounts applied pursuant to clauses (i) and (ii) above, the Supplemental
      Interest Payment for each Class of Class A Certificates and Mezzanine
      Certificates (in each case only up to the amount necessary to pay the related
      Supplemental Interest Amount Due) and provided that with respect to all or
      any
      portion of a Reallocable Class which has not previously been the subject of
      a
      Reallocation (a) the Supplemental Interest Payment otherwise allocated to the
      Class M-10 Certificates shall be distributed to the Class M-10N Certificates
      and
      shall be the Non-Derivative Supplemental Interest Payment for the Class M-10
      Certificates, the Supplemental Interest Payment otherwise allocated to the
      Class
      M-11 Certificates shall be distributed to the Class M-11N Certificates and
      shall
      be the Non-Derivative Supplemental Interest Payment for the Class M-11
      Certificates, the Supplemental Interest Payment otherwise allocated to the
      Class
      M-12 Certificates shall be distributed to the Class M-12N Certificates and
      shall
      be the Non-Derivative Supplemental Interest Payment for the Class M-12
      Certificates and the Supplemental Interest Payment otherwise allocated to the
      Class M-13 Certificates shall be distributed to the Class M-13N Certificates
      and
      shall be the Non-Derivative Supplemental Interest Payment for the Class M-13
      Certificates, and (b) the Derivative Supplemental Interest Payment for the
      Class
      M-10 Certificates shall be paid to the Holders of the Class M-10 DSI
      Certificates, the Derivative Supplemental Interest Payment for the Class M-11
      Certificates shall be paid to the Holders of the Class M-11 DSI Certificates,
      the Derivative Supplemental Interest Payment for the Class M-12 Certificates
      shall be paid to the Holders of the Class M-12 DSI Certificates and the
      Derivative Supplemental Interest Payment for the Class M-13 Certificates shall
      be paid to the Holders of the Class M-13 DSI Certificates.

     

    (iv) fourth,
      from
      any remaining amounts, to the Hedge Counterparties to which such amounts are
      owed, pro
      rata,
      any
      Defaulted Hedge Termination Payments and any indemnity payments provided for
      in
      Part 5 of the Hedge Agreements; and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (v) fifth,
      from
      any remaining amounts, to the Holders of the Class CB Certificates, an amount
      equal to the Class CB Interest Distributable Amount for such Distribution Date;
      and

     

    (vi) sixth,
      any
      remaining amounts, to the Holders of the Class CA Certificates.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    

    Amended
      Definition of “Non-Derivative Supplemental Interest Payment”

    

    2006-4

    

    "Non-Derivative
      Supplemental Interest Payment":
      With
      respect to each Distribution Date, and the Class M-10, Class M-11 and Class
      M-12
      Certificates, the dollar amount of the Supplemental Interest Payment which
      would
      be distributed to each such Class on such Distribution Date pursuant to Section
      4.04(c)(iii) hereof if the amount received by the Supplemental Interest Trust
      from each Cap Counterparty on such Distribution Date had been zero (i.e.,
      disregarding all amounts actually received from each Cap
      Counterparty).

     

    2006-5

    

    "Non-Derivative
      Supplemental Interest Payment":
      With
      respect to each Distribution Date, and the Class M-10, Class M-11 and Class
      M-12
      Certificates, the dollar amount of Supplemental Interest Payment which would
      be
      distributed to each such Class on such Distribution Date pursuant to Section
      4.04(c)(iii) hereof if the amount received by the Supplemental Interest Trust
      from each Cap Counterparty on such Distribution Date had been zero (i.e.,
      disregarding all amounts actually received from each Cap
      Counterparty).

     

    2006-6

    

    "Non-Derivative
      Supplemental Interest Payment":
      With
      respect to each Distribution Date, and the Class M-10, Class M-11, Class M-12
      and Class M-13 Certificates, the dollar amount of Supplemental Interest Payment
      which would be distributed to each such Class on such Distribution Date pursuant
      to Section 4.04(c)(iii) hereof if the amount received by the Supplemental
      Interest Trust from each Cap Counterparty on such Distribution Date had been
      zero (i.e., disregarding all amounts actually received from each Cap
      Counterparty).

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