Dept. of Trans.       PROGRESS   Serial No.  Contract No.                               
                                          07-234-11-22  05-452604                       
                PROGRESS PAYMENT VOUCHER  %complete:   %time:                           
Location:                                  10%          15%                             
05-SLO-41-49.7/50.4                    Federal Project:                                 
05-KER-41-0.0/1.2                                     NONE                              
                                                                                        
                                                                                        
Progress payment No. 01            Payment period ending: 08-20-07                      
PAPICH CONSTRUCTION COMPANY                                                             
INC                                                                                     
P O BOX 2210                                                                            
PISMO BEACH CA 93448                                                                    
                                                                                        
Escrow No.  00000                                                                       
                                    Total Estimate   This Estimate                      
1. Contract Itms Without Mobil.         291,227.86      291,227.86                      
2.a. Extra Work                                                                         
  b. Adjustment Comp.                                                                   
3. Materials on Hand                                                                    
4. Earned Subject to Retention          291,227.86      291,227.86                      
5. Mobilization                          50,000.00       50,000.00                      
6. Total Work Completed      341,227.86                                                 
7. Deductions                            -5,800.00       -5,800.00                      
8. a.Contract Retentions                -29,122.79      -29,122.79                      
   b. Unsatisfactory Prog.                                                              
   c. Reduction after 95% Comp.                                                         
9. Total pay to Contractor              306,305.07      306,305.07                      
10. Reduction Amt to Escrow                                                             
11. Payment to Escrow             0.00                                                  
12. Net Pymt. this Estimate                             306,305.07