AQUA S.T.A.R. SWIM LESSONS LTD.
CLIENT REFERRAL PROGRAM POLICY

Effective Date: February 5, 2026

1. PROGRAM OVERVIEW

Aquastar’s Referral Program rewards existing clients who refer new clients to our platform. Both referrer and referee receive benefits when valid referrals are completed. This policy governs eligibility, rewards, redemption, and anti-abuse measures.

REFERRER: Existing Aquastar client with an active account in good standing who has completed at least one paid lesson or trial assessment.

REFEREE: New client who has never enrolled with Aquastar under any account or email and registers using a valid referral code.

GOOD STANDING: No outstanding balances, chargebacks, unresolved disputes, or policy violations.

2. REFERRAL REWARDS STRUCTURE

2.1 Immediate Registration Credits

Both parties receive a twenty-five-dollar credit immediately upon referee registration with a valid referral code:

• Referrer receives a $25 credit to their existing account
• Referee receives a $25 credit applicable to the first purchase

Credits are issued automatically when the referee completes registration using the referrer’s unique code.

2.2 Free Lesson Bonus (Qualified Purchase)

When the referee purchases a package of at least 10 lessons, the referrer earns 1 free 30-minute lesson. Free lesson eligibility requires:

• Referee payment cleared (no pending chargebacks)
• Package fulfillment confirmed
• Referee account in good standing

FREE LESSON CAP: Maximum four free thirty-minute lessons per referrer (one per qualifying referee). Twenty-five-dollar credits are unlimited for genuine referrals.

3. ELIGIBILITY REQUIREMENTS

3.1 Who May Refer

Any Aquastar client meeting all of the following:

• Active account in good standing
• Completed a minimum of one paid lesson or trial assessment
• No outstanding balances or unresolved disputes

3.2 Who May Be Referred

Only individuals who have never enrolled with Aquastar under any account, email address, or household.

3.3 Automatic Disqualifications

The following are prohibited and result in immediate disqualification:

• Self-referrals or family members in the same household are creating duplicate accounts
• Past or existing clients misrepresenting themselves as new clients
• Fraudulent accounts or shared login credentials
• Multiple accounts created to exploit program
• Mass broadcasting on coupon sites soliciting untargeted sign-ups
• Any attempt to circumvent program rules or fraud prevention measures

Disqualified referrals forfeit all credits and bonuses. Aquastar reserves the right to suspend or terminate accounts engaging in abuse.

4. REFERRAL PROCESS AND TRACKING

4.1 Referral Code Distribution

Each eligible referrer receives a unique alphanumeric referral code and QR code accessible through the Aquastar client dashboard. Codes are non-transferable and must be shared only with genuine prospective clients known to the referrer.

4.2 Code Redemption

Referees must enter the referral code during online registration or provide the code to Aquastar staff during phone or in-person enrollment. Staff must log referrals at the point of registration to ensure proper credit attribution.

4.3 System Tracking

Aquastar tracks referrals through automated systems, including email uniqueness verification, IP and device monitoring, referral code logging, registration timestamps, payment confirmation, and fraud detection analytics.

All referral data is recorded in a customer relationship management system for verification, fraud prevention, and program administration.

5. CREDIT REDEMPTION RULES

5.1 Minimum Redemption Threshold

Credits may be redeemed once the referrer accumulates a minimum of fifty dollars in total credits. After the threshold is met, credits may be redeemed in twenty-five-dollar increments ($25, $50, $75, etc.). Unused balance carries forward.

5.2 Credit Valuation by Lesson Duration

Referral credit value depends on the lesson duration purchased:

• ONE-HOUR LESSONS: $25 credit unit = $25 value
• THIRTY-MINUTE LESSONS: $25 credit unit = $12.50 value (half of one-hour value)

This valuation reflects different pricing structures for lesson durations and ensures fair value application across all package types.

5.3 Application Limits (Financial Protection)

THIRTY-MINUTE PACKAGE CAP: Maximum one $25 credit unit may be applied per ten-lesson thirty-minute package purchase. This protects platform financial sustainability while providing meaningful client benefits.

ONE-HOUR PACKAGES: Multiple $25 credit units may be applied to one-hour lesson packages subject to minimum redemption threshold and available credit balance.

5.4 Promotion Non-Stacking

Referral credits cannot be combined with other promotional discounts (seasonal sales, first-time buyer discounts, special offers) on the same purchase. The client must choose either referral credit or promotional discount for each transaction.

This prevents excessive discount stacking that would undermine platform pricing sustainability.

5.5 Credit Expiration

REFERRAL CREDITS: Expire twelve months after issuance
FREE LESSON REWARDS: Expire six months after issuance

Expiration terms comply with applicable provincial consumer protection laws. Where provincial law prohibits expiration of promotional credits, Aquastar will comply with legal requirements.

Clients receive automated notifications thirty days and seven days before credit expiration.

6. ANTI-ABUSE AND FRAUD PREVENTION

6.1 Verification Procedures

Aquastar verifies all referee registrations against the existing client database. Duplicate accounts, suspicious patterns, or conflicting information trigger manual review and potential disqualification.

6.2 Monitoring and Detection

VELOCITY MONITORING: Excessive referral rates from a single referrer trigger fraud alerts and hold on reward issuance pending verification.

IP AND DEVICE TRACKING: Multiple registrations from the same IP address or device are flagged for investigation.

PATTERN ANALYSIS: Automated systems detect anomalous behavior including coordinated sign-ups, matching registration details, or timing patterns suggesting collusion.

6.3 Delayed Fulfillment

Free lesson rewards are not scheduled until referee payment clears and package fulfillment is confirmed. This prevents rewards for fraudulent or reversed transactions.

6.4 Audit Rights and Reversals

Aquastar reserves the right to audit any referral, request verification documentation from referrer or referee, and reverse credits or rewards if abuse is confirmed. Reversed credits may result in a negative account balance requiring repayment.

6.5 Account Sanctions

Accounts found abusing the referral program will face consequences, including immediate loss of referral privileges, suspension of account access, termination of account with a refund per the Cancellation Policy, or legal action for fraud exceeding five hundred dollars.

7. PRIVACY AND DATA PROTECTION

7.1 Information Collected

Referral program administration requires the collection of referrer account ID, referee contact information and registration details, referral code used, IP address and device metadata, registration timestamps, payment confirmation data, and instructor assignments.

7.2 Data Use and Retention

Referral data is used exclusively for program administration, fraud prevention, performance analytics, and customer service. Data is retained minimum of eighteen months from the referral date, then anonymized or deleted unless legal retention requirements apply.

Data handling complies with the federal Personal Information Protection and Electronic Documents Act (PIPEDA) and applicable provincial privacy legislation.

7.3 Commercial Electronic Messages

Referral-related communications comply with Canada’s Anti-Spam Legislation (CASL), including consent requirements, unsubscribe mechanisms, and record-keeping obligations for commercial electronic messages.

8. LEGAL AND TAX CONSIDERATIONS

8.1 Tax Treatment

Referral credits and free lessons may constitute taxable benefits under Canada Revenue Agency rules, depending on individual circumstances. Clients are responsible for determining tax obligations and reporting taxable benefits on personal income tax returns.

Aquastar does not provide tax advice. Consult a qualified tax professional regarding the tax treatment of referral rewards.

8.2 Provincial Compliance

Program terms comply with British Columbia consumer protection laws and adjust as necessary for clients in other provinces. Provincial variations in gift card expiration rules, promotional credit regulations, or consumer protection requirements are accommodated where applicable.

8.3 No Guarantee of Continued Program

Aquastar may modify, suspend, or terminate the referral program at any time for business reasons, legal compliance, or fraud prevention. Material changes require a minimum of thirty days advance notice when practicable. Treatment of accrued unused credits will be communicated upon program termination.

9. DISPUTE RESOLUTION

9.1 Dispute Submission

Disputes regarding referral credits, eligibility, disqualifications, or reward fulfillment must be submitted in writing to info+billing@aquastarcanada.com or info@aquastarcanada.com within thirty days of the disputed event.

9.2 Review Process and Timeline

Disputes are reviewed by the Customer Support Team, escalated to the Referral Program Manager if necessary, and further escalated to Senior Management for complex cases.

RESPONSE TIMELINE: Initial response within five business days. Resolution target within ten business days after initial response. Complex investigations may extend the timeline with notice to the client.

9.3 Final Decision Authority

Aquastar management retains final decision authority on all referral program disputes. Decisions are made in good faith based on program rules, fraud prevention needs, and platform sustainability.

10. POLICY MODIFICATIONS AND ACKNOWLEDGMENT

10.1 Policy Updates

Aquastar reserves the right to modify this policy at any time. Material changes affecting credit value, redemption rules, or eligibility requirements require a minimum of thirty days’ notice to active participants.

Updated policy versions are posted on the Aquastar website with an effective date. Continued participation after policy update constitutes acceptance of modified terms.

10.2 Participant Acknowledgment

By participating in the referral program (sharing referral code or using referee code), you acknowledge that you have read, understood, and agree to be bound by this policy.

Violation of policy terms results in forfeiture of referral benefits and potential account sanctions as described in Section 6.5.

CONTACT INFORMATION

Referral Program Inquiries:
Email: info+billing@aquastarcanada.com
Business Hours: Monday – Friday, 9:00 AM – 5:00 PM Pacific Time

PRACTICAL EXAMPLES

Example 1 – Thirty-Minute Package Purchase:
Sarah (referrer) has $50 in referral credits (two referrals). She purchases ten-lesson thirty-minute package priced at $50 per session. Because thirty-minute lessons value credits at half ($25 unit = $12.50), and thirty-minute package cap limits application to one $25 unit per ten-lesson package, Sarah applies one $25 unit (valued at $12.50) to purchase. The remaining $25 credit stays in the account for future use.

Example 2 – One-Hour Package Purchase:
Sarah has a $50 credit and purchases a one-hour lesson package at $100 per session. Because one-hour lessons use full credit value ($25 unit = $25), Sarah applies two $25 units (total $50) to purchase, effectively reducing the package cost by $50 or adding equivalent lesson time based on the package structure.

Example 3 – Promotion Conflict:
During the seasonal sale, offering a twenty percent discount, Sarah must choose either the sale discount or the referral credit for the transaction. She cannot combine both promotions on the same purchase.

END OF REFERRAL PROGRAM POLICY

Effective February 5, 2026
Last Updated: February 5, 2026

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