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2022 RETAILER PROGRAM

Trek Bicycle Corporation 801 West Madison Street Waterloo, Wisconsin 53594 USA

July, 2021

Dear Trek Retailer,

As we move into our 2022 program year, it’s important to take note of how 2021 is unfolding. As we have communicated, the pandemic-induced bike boom has wreaked havoc upon the global bicycle supply chain. Our Trek supply chain team has done a great job navigating this incredibly turbulent environment. It is a daily battle, and we have seen jumps forward and steps backward. Overall, we are making gains on the weekly receipt of bicycles and expect a big second half of the year.

The demand side of the bike boom continues. Generally, we are seeing less demand than the peak months of the initial ’20 boom, but key traffic and online metrics are still trending well above 2019. Additionally, we are seeing the e-bike revolution continuing to march along. Finally, the idea of the bicycle being a simple solution to many of the world’s problems is one that is resonating across the globe.

Our retail partners are a crucial part of our supply chain. To make sure we do a great job supplying your business in the remainder of 2021 and through 2022, we will need your help in 3 key areas.

1. We need appropriate and realistic orders from every retailer. To accomplish this, we are asking that every retailer perform a comprehensive backorder review in the month of July 2021. We have great reporting tools that take into consideration past purchases, current backorders, and inventory plans for the 2022 model year. We ask that by July 31, you review, adjust and lock all back orders through June of 2022. It is important to note that at Trek, we have placed orders 12 months beyond the retailer lock window date.

2. We ask that every retailer has a plan to WIN THE SEASON. Throughout the entire bike boom, it has been very clear that retailers with a plan perform much better than those without one. Once again, the launching pad to Winning the Season will be TREK WORLD – WIN THE SEASON on October 19, 2021. Please save the date and make plans to make the most of this epic event with your teams.

3. Our final ask is for your strong commitment to Trek. Our retailer program is as simple as it has ever been. A strong commitment to Trek, Electra, and Bontrager allows you to run a simple, profitable, and healthy business.

We continue to hear from our retailers that Trek has been the most consistent and reliable supplier in the industry throughout this incredible period in the bike business. We appreciate that feedback, but we know we can be better. We have the plans in place to do so.

Thank you for your ongoing efforts on the front lines of retail and for your continued commitment to Trek!

Best,

Paul MoranN.A. Sales Manager

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2022 TREK RETAILER COMMITMENT AND BENEFITS

TREK RETAILER COMMITMENT

Partner Gold Silver Standard

Percent of total retailer purchases AND floor space dedicated to Trek/Electra and Bontrager

85%+ 84% - 65% 64% - 45% 44% - 35%

Minimum annual purchase requirement (to receive level benefits) $200,000 $125,000 $75,000 $35,000

(or)

Annual purchase volume w/Trek $4,000,000 $2,000,000 $750,000 n/a

TREK RETAILER BENEFITS

Bicycle MSRP Categories Partner Gold Silver Standard

< $498.99 42% 40% 37% 37%

$499.99 - $998.99 40% 38% 37% 37%

$999.99 - $1,998.99 37% 35% 35% 35%

$1,999+ 35% 33% 33% 33%

E-bikes, Project One, and framesets 32% 30% 30% 30%

Bicycle rebate * n/a 3% 1.5% n/a

*Bicycle rebate qualifying criteria: 1. Achieve agreed upon total purchase growth percentage. 2. Achieve P&A growth percentage. 3. Maintain a current Accounts Payable with Trek.

Proprietary P&A Pricing - Order Window Partner (on invoice)

Gold (w/rebate)

Silver (w/rebate)

Standard

06/28/2021 – 06/24/2022 Level 1 - 10% Level 1 - 6% Level 1 - 3% Level 1

ADDITIONAL BENEFITS Partner Gold Silver Standard

Win The Season event priority 1st priority 2nd priority Eligible Eligible

Bicycle Freight Partner Gold Silver Standard

Shipments from primary warehouse 15+ ppd 15+ ppd 15+ ppd 15+ ppd

"Wisconsin warehouse only" bikes ppd ppd ppd ppd

P&A Freight Partner Gold Silver Standard

Shipments from primary and secondary warehouses $500+ ppd $500+ ppd $500+ ppd $500+ ppd

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2022 TREK RETAILER PROPRIETARY P&A PROGRAM

PROPRIETARY P&A PRICING

Order Window Partner (on invoice)

Gold (w/rebate)

Silver (w/rebate)

Standard

06/28/2021 – 06/24/2022 Level 1 - 10% Level 1 - 6% Level 1 - 3% Level 1

Proprietary P&A growth requirement for rebate n/a 10% 15% n/a

Proprietary P&A purchase phasing requirement n/a50% of P&A purchase agreement shipped by

01/01/2022

50% of P&A purchase agreement shipped by

01/01/2022n/a

Minimum "Mandatory" categories (per location) 18 11 11 n/a

Minimum "Elective" categories (per location) 0 3 0 n/a

Total stocking category (per location) 18 14 11 n/a

Online sales eligibility Yes Yes Yes n/a

SERVICE COMMISSION RATESProduct Category Partner Gold Silver Standard

Bicycles* 35% 35% 20% 20%

Proprietary P&A (Click and Collect only) 50% 35% 30% 30%

Bontrager Wheels (Click and Collect only) 25% 22.5% 20% 20%

Non-proprietary P&A (Click and Collect only) 25% 22.5% 20% 20%

* Service commissions to be issued based on achieving annual commitment growth goal Program provided by trekbikes.com LLC

CATEGORY STOCKING REQUIREMENTSProduct Category Category Type Rebate Eligible

Helmets Mandatory Yes

Tires Mandatory Yes

Gloves Mandatory Yes

Saddles Mandatory Yes

Shoes Mandatory Yes

Apparel (standard & custom) Mandatory Yes

Electra P&A Mandatory Yes

Lights Mandatory Yes

Tubes Mandatory Yes

Product Category Category Type Rebate Eligible

Pumps Mandatory Yes

Cages Mandatory Yes

Computers Elective Yes

Wheels Elective No

Bags Elective Yes

Bottles (standard & custom) Elective Yes

Components, Racks Elective Yes

Pedals Elective Yes

Locks Elective Yes

P&A rebates will be issued based on the following criteria:1. Achieve agreed upon total annual purchase commitment growth percentage2. Achieve proprietary P&A growth requirement3. Achieve P&A purchase phasing requirements4. Achieve category stocking requirements5. Maintain current accounts payable with Trek

Rebate periodsPeriod 1: 06/27/2021 – 09/25/2021Period 2: 09/26/2021 – 01/01/2022Period 3: 01/02/2022 – 03/26/2022Period 4: 03/27/2022 - 06/25/2022

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2022 TERMS

BACKORDER LOCK WINDOW

2022 STANDARD TERMS

Shipment dateDue date

Days08/102021

09/102021

10/102021

11/102021

12/102021

01/102022

02/102022

03/102022

04/102022

05/102022

06/102022

07/102022

08/102022

09/102022

10/102022

07/22–08/19 11/10/21 90 1% 0% 0% Due

08/20–09/16 12/10/21 90 1% 0% 0% Due

09/17–10/21 03/10/22 150 1% 1% 1% 0% 0% Due

10/23–11/18 03/10/22 120 1% 1% 0% 0% Due

11/19–12/16 04/10/22 120 1% 1% 0% 0% Due

12/17–01/20 05/10/22 120 1% 1% 0% 0% Due

01/21–02/17 05/10/22 90 1% 0% 0% Due

02/18–03/17 06/10/22 90 1% 0% 0% Due

03/18–04/21 07/10/22 90 1% 0% 0% Due

04/22–05/19 08/10/22 90 1% 0% 0% Due

05/20–06/16 09/10/22 90 1% 0% 0% Due

06/17–07/22 10/10/22 90 1% 0% 0% Due

2022 MOUNTAIN TERMS

Shipment dateDue date

Days08/102021

09/102021

10/102021

11/102021

12/102021

01/102022

02/102022

03/102022

04/102022

05/102022

06/102022

07/102022

08/102022

09/102022

10/102022

07/22–08/19 11/10/21 90 1% 0% 0% Due

08/20–09/16 12/10/21 90 1% 0% 0% Due

09/17–10/21 03/10/22 150 1% 1% 1% 0% 0% Due

10/23–11/18 04/10/22 150 1% 1% 1% 0% 0% Due

11/19–12/16 05/10/22 150 1% 1% 1% 0% 0% Due

12/17–01/20 05/10/22 120 1% 1% 0% 0% Due

01/21–02/17 06/10/22 120 1% 1% 0% 0% Due

02/18–03/17 06/10/22 90 1% 0% 0% Due

03/18–04/21 07/10/22 90 1% 0% 0% Due

04/22–05/19 08/10/22 90 1% 0% 0% Due

05/20–06/16 09/10/22 90 1% 0% 0% Due

06/17–07/21 10/10/22 90 1% 0% 0% Due

APR 2021

MAY 2021

JUN 2021

JUL 2021

AUG 2021

SEP 2021

OCT 2021

NOV 2021

DEC 2021

JAN 2022

FEB 2022

MAR 2022

APR 2022

MAY 2022

JUN 2022

Current lock window Model year 2022 lock window

Non-Qualifying order: Net 10th PROX-2 MOS rolling on the 20th of the month. No early pay discounts allowed.