Dept. of Trans.       AFTER ACCEPTANCE   Serial No.  Contract No.                       
                                          06-227-08-05  12-0G6504                       
                PROGRESS PAYMENT VOUCHER  %complete:   %time:                           
Location:                                 100%         100%                             
12-ORA-1-20.3/20.3                    Federal Project:                                  
                                     ACST-S001(525)                                     
                             PHG-S001(525)                                              
                                                                                        
Progress payment No. 07            Payment period ending: 07-18-06                      
TERNO INC                                                                               
15701 HERON AVENUE                                                                      
LA MIRADA CA 90638                                                                      
                                                                                        
                                                                                        
Escrow No.  00000                                                                       
                                    Total Estimate   This Estimate                      
1. Contract Itms Without Mobil.         361,740.98       27,810.67                      
2.a. Extra Work                          17,266.61       17,266.61                      
  b. Adjustment Comp.                    10,622.00       10,622.00                      
3. Materials on Hand                                                                    
4. Earned Subject to Retention          389,629.59       55,699.28                      
5. Mobilization                           9,795.00            0.00                      
6. Total Work Completed      399,424.59                                                 
7. Deductions                           -10,000.00       22,900.00                      
8. a.Contract Retentions                                                                
   b. Unsatisfactory Prog.                                                              
   c. Reduction after 95% Comp.                                                         
9. Total pay to Contractor              389,424.59       78,599.28                      
10. Reduction Amt to Escrow                                                             
11. Payment to Escrow             0.00                                                  
12. Net Pymt. this Estimate                              78,599.28