Dealer & Retailer Compliance (B2B) Overview

In addition to DTC sales, Cressi supplies products to authorized dealers and retailers that sell to California consumers. These partners have independent compliance obligations under California law.

Cressi’s Role as Manufacturer / Distributor

Cressi is responsible for:

• Notifying dealers and retailers of applicable requirements

• Providing clarity on product eligibility

• Supporting consistent downstream compliance

Dealer & Retailer Responsibilities

Authorized sellers of covered products must:

• Apply the recycling fee at point of sale

• Display the fee as a separate line item

• Ensure the fee is not bundled into product pricing

Draft Dealer Compliance Memo (DRAFT)

Subject: California Battery Recycling Fee — Dealer & Retailer Compliance Notice

Beginning January 1, 2026, California law requires a recycling fee to be applied to certain electronic products that contain embedded batteries when sold to California consumers.

Cressi is providing this notice to ensure authorized dealers and retail partners are aware of their responsibilities when selling covered Cressi products in California.

For applicable products:

• A California Battery Recycling Fee must be applied at the point of sale

• The fee must be displayed as a separate line item on customer receipts

• The fee may not be bundled into product pricing

The fee is calculated as 1.5% of the product price, capped at $15 per item, and applies only to products covered under California law.

Dealers and retailers are responsible for determining applicability and ensuring proper disclosure to consumers. This notice is provided for compliance awareness and consistency across the Cressi dealer network.

For questions regarding product eligibility or compliance guidance, please contact your Cressi representative.