Dept. of Trans.       PROGRESS   Serial No.  Contract No.                               
                                          08-024-13-18  08-0L1504                       
                PROGRESS PAYMENT VOUCHER  %complete:   %time:                           
Location:                                  44%          50%                             
08-SBD-18-28.0/40.0                    Federal Project:                                 
08-SBD-330-41.0/44.1                                     NONE                           
                                                                                        
                                                                                        
Progress payment No. 02            Payment period ending: 01-21-08                      
SOUTH BAY TIMBER, LLC                                                                   
202 NORTH OREGON ST                                                                     
YREKA, CA 96097                                                                         
                                                                                        
                                                                                        
Escrow No.  00000                                                                       
                                    Total Estimate   This Estimate                      
1. Contract Itms Without Mobil.                                                         
2.a. Extra Work                         286,819.98       18,942.00                      
  b. Adjustment Comp.                                                                   
3. Materials on Hand                                                                    
4. Earned Subject to Retention          286,819.98       18,942.00                      
5. Mobilization                                                                         
6. Total Work Completed      286,819.98                                                 
7. Deductions                                                                           
8. a.Contract Retentions                                                                
   b. Unsatisfactory Prog.                                                              
   c. Reduction after 95% Comp.                                                         
9. Total pay to Contractor              286,819.98       18,942.00                      
10. Reduction Amt to Escrow                                                             
11. Payment to Escrow             0.00                                                  
12. Net Pymt. this Estimate                              18,942.00