Dept. of Trans.       PROGRESS   Serial No.  Contract No.                               
                                          07-234-17-31  01-423804                       
                PROGRESS PAYMENT VOUCHER  %complete:   %time:                           
Location:                                  40%          35%                             
01-HUM-299-R8.8/R9.0                    Federal Project:                                
                                     NONE                                               
                                                                                        
                                                                                        
Progress payment No. 02            Payment period ending: 08-20-07                      
KERNEN CONSTRUCTION                                                                     
P O BOX 1340                                                                            
BLUE LAKE CA 95525                                                                      
                                                                                        
                                                                                        
Escrow No.  00000                                                                       
                                    Total Estimate   This Estimate                      
1. Contract Itms Without Mobil.         154,736.50      143,361.50                      
2.a. Extra Work                                                                         
  b. Adjustment Comp.                                                                   
3. Materials on Hand                                                                    
4. Earned Subject to Retention          154,736.50      143,361.50                      
5. Mobilization                          29,450.00       29,450.00                      
6. Total Work Completed      184,186.50                                                 
7. Deductions                                                                           
8. a.Contract Retentions                 -8,601.99       -7,464.49                      
   b. Unsatisfactory Prog.                                                              
   c. Reduction after 95% Comp.                                                         
9. Total pay to Contractor              175,584.51      165,347.01                      
10. Reduction Amt to Escrow                                                             
11. Payment to Escrow             0.00                                                  
12. Net Pymt. this Estimate                             165,347.01