Lyles Diversified, Inc. (LDI) is seeking to expand the Lyles Construction Group through both internal growth and acquisition. We have developed the following guidelines for our use in reviewing potential acquisitions:

1. The company must have a talented group of managers with an excellent reputation, especially in the area of ethics.
2. The company must have demonstrated ability to safely complete quality work on time and under budget resulting in satisfied clients and consistent profitability.
3. If the company is to remain a stand-alone entity, the CEO must have proven leadership capabilities and the company should be based in California.
4. If the company is to be merged into one of our current operations, it should be based in California or an adjacent state.
5. The company should have significant growth opportunities through a market niche and / or leadership position.
6. LDI should be able to add value to the business through the following:
   
   
   1. Infusion of cash.
   2. Accounting discipline, through our centralized accounting.
   3. Access to favorable insurance / bond rates.
   4. Synergy with current LDI construction operations.
   5. Improvements in employee recruitment and retention through added stability and / or Employee participation in the LDI Employee Stock Ownership Plan.
   6. Board level guidance.
      
      
7. The purchase price must allow a return to our shareholders in line with our target for new investments of similar risk. The purchase price should be stated up front. Due to the nature of the construction business, we do not recognize construction firms as having goodwill.  We are open to purchase agreements that allow for earn out provisions.
8. LDI must purchase at least 50% of the company. Partnerships to be based on capital contributions.
9. Revenue should exceed $20 million.