Avolon entered into an exclusivity agreement with Bohai Leasing granting Bohai exclusivity to negotiate terms with Avolon for the possible acquisition of 100% of Avolon at $32 dollars per share.

The agreement would give Bohai and Avolon until September 7, 2015 to negotiate a definitive agreement on terms previously discussed and accepted by both parties.

In connection with Bohai’s obligations under the new agreement, it will make a good faith deposit of $50 million into an escrow account. That amount will be in addition to the $25 million currently held in escrow in connection with the cash tender offer made by Bohai on July 31 for an aggregate deposit of $75 million. Avolon will be entitled to receive the $75 million deposit in certain circumstances, including if Avolon is willing to execute definitive documents in connection with the new transaction and Bohai is unable or unwilling to do so.

Upon execution of definitive documents in connection with the new transaction the $75 million deposit will be increased by Bohai to $250 million, payable to Avolon in the event the new transaction is not consummated under certain circumstances.

Pursuant to the new agreement, Avolon and Bohai will amend an agreement dated July 14, 2015 between Avolon, Bohai and an indirect wholly owned subsidiary of Bohai, to extend the expiration time of the offer to midnight at the end of the day on September 18, 2015.

Avolon remains subject to the agreement from July 14. There can be no assurances that Avolon and Bohai will enter into a binding agreement to consummate the July 14 agreement or that Avolon’s board of directors will approve any such transaction.

If Bohai and Avolon enter into a binding agreement to consummate this new transaction prior to the consummation of the July 31 offer, both will be terminated.