Prevelo is committed to protecting the margins of Authorized Dealers.

Margin Protection at Time of Wholesale Purchase

If a Prevelo bike is discounted on prevelo.com, Dealers may purchase bikes from Prevelo at a reduced wholesale price so that the Dealer's current effective margin on that item is maintained. The Discounted Wholesale price is calculated so that the wholesale-to-retail ratio stays the same:

Original Wholesale ÷ Original Retail = Discounted Wholesale ÷ Discounted Retail

Equivalently, solving for the discounted wholesale price:

Discounted Wholesale = Original Wholesale × (Discounted Retail ÷ Original Retail)

Terms

• Applies only to United States Authorized Dealers in good standing.

• Cannot be applied retroactively. However, if a bike is already in inventory and sold at a discount to a customer during a promotion, see "Margin Protection for Inventory Sold During Discounts or Other Promotions" below.

Margin Protection for Inventory Sold During Discounts or Other Promotions

Inventory sold by Dealers during discounts. If a Dealer has a Prevelo bike in inventory and sells it to a customer at a time when the bike is discounted on prevelo.com, the Dealer may sell the customer the bike at the price advertised on prevelo.com, and Prevelo will refund the Dealer an amount so that the Dealer's margin is restored to the Tier 1 percent margin. The refund is calculated as:

Refund = Actual Wholesale Purchase Price − Tier 1 Discounted Wholesale

where:

Tier 1 Discounted Wholesale = Tier 1 Original Wholesale × (Discounted Retail ÷ Original Retail)

The refund is never less than $0. If the result is zero or negative, no refund is owed, because the Dealer's margin already meets or exceeds the Tier 1 margin.

Inventory sold by Dealers during promotions with free accessories. If a Dealer has a Prevelo bike in inventory and sells it to a customer at a time when the bike is being offered with free accessories on prevelo.com, the Dealer may sell the customer the bike with the same free accessories offered on prevelo.com, and Prevelo will send the accessories to the Dealer at no charge.

Terms

• Refunds are calculated at the Tier 1 margin. Dealers at higher tiers are refunded only down to the Tier 1 margin, not to their own standard margin.

• To receive margin protection, Dealers must submit a request to Prevelo via email.

• Applies only to Prevelo bikes purchased from Prevelo USA before the promotion and sold by the Dealer to a customer during a promotion on prevelo.com.

• Requests must be submitted within 7 calendar days of the sale to the customer.

• The Dealer must submit evidence that they sold the bike to a customer during the promotion and extended the promotion to the customer. A copy of the retail receipt is acceptable.

• Does not apply to shipping. No shipping costs will be refunded under this program.

• Does not apply to inventory purchased more than 90 days before the date the claim is made.

• Applies only to offers publicly available for new bikes on prevelo.com. If a customer presents an offer for the Dealer to match, Dealers are encouraged to verify that the offer is currently available on prevelo.com.

• This policy does not apply to private, restricted, or non-public offers, including but not limited to: employee or friends-and-family pricing; military, first responder, or other professional discounts; ambassador or pro-deal pricing; organizational or affinity-group discounts; charitable or donation pricing; custom quotes; and any discount delivered through a private code, gated landing page, or targeted email or SMS campaign that is not generally advertised on prevelo.com. Margin protection applies only to publicly advertised promotions available to all customers visiting prevelo.com.

• Does not apply to the outlet section of prevelo.com.

• Free accessories must be supplied by Prevelo. Prevelo will not compensate a Dealer for the cost of accessories given to a customer under this program if the accessories were not purchased from Prevelo.

• Applies only to Dealers in the contiguous USA.

• No stacking promotions. If a Dealer purchases a bike from Prevelo during a promotion and subsequently requests margin protection under a later promotion, margin protection benefits may be reduced by the amount of the promotional benefits received on the initial purchase. If the original purchase included free shipping, free accessories, or discounts, the value of those will be deducted from any refund.

• Prevelo reserves the right to terminate Dealer accounts that it determines are abusing this policy.

• Prevelo reserves the right to modify, amend, suspend, or terminate this policy in whole or in part, at any time, with or without notice. The version of the policy in effect at the time a qualifying sale occurs will govern any margin protection request for that sale. Continued participation as an Authorized Dealer following any change constitutes acceptance of the revised policy.