Dept. of Trans.       PROGRESS   Serial No.  Contract No.                               
                                          06-145-15-28  08-0H5804                       
                PROGRESS PAYMENT VOUCHER  %complete:   %time:                           
Location:                                  21%          20%                             
08-SBD-138-29.1/37.8                    Federal Project:                                
08-SBD-189-0.0/5.6                                     NH                               
08-SBD-173-10.8/23.1                                                                    
                                                                                        
Progress payment No. 02            Payment period ending: 05-20-06                      
SOUTH BAY TIMBER                                                                        
202 N. OREGON ST.                                                                       
YREKA, CA  96067                                                                        
                                                                                        
                                                                                        
Escrow No.  00000                                                                       
                                    Total Estimate   This Estimate                      
1. Contract Itms Without Mobil.                                                         
2.a. Extra Work                         424,136.17      374,136.17                      
  b. Adjustment Comp.                                                                   
3. Materials on Hand                                                                    
4. Earned Subject to Retention          424,136.17      374,136.17                      
5. Mobilization                                                                         
6. Total Work Completed      424,136.17                                                 
7. Deductions                                                                           
8. a.Contract Retentions                                                                
   b. Unsatisfactory Prog.                                                              
   c. Reduction after 95% Comp.                                                         
9. Total pay to Contractor              424,136.17      374,136.17                      
10. Reduction Amt to Escrow                                                             
11. Payment to Escrow             0.00                                                  
12. Net Pymt. this Estimate                             374,136.17