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4.0 OPERATOR'S SERVICE OBLIGATIONS. 4.01 Golf Professional Services. OPERATOR shall sell, rent, and repair golf equipment; sell golf related clothing and supplies; provide instructional services in the playing of golf; rent golf carts; and operate a driving range. Such services shall be provided by or under the on- Premises direct supervision of the Golf Professional. 4.01.1 Pro Shop and Merchandise. The Pro Shop shall be open on the dates and at the time provided in the Golf Course Manual. a) Inventory. OPERATOR shall procure and maintain in the Pro Shop such inventory of golf merchandise as deemed necessary or appropriate to adequately meet public demand and consistent with the goal in Section 3.02.2. b) Mark Down of Merchandise. Merchandise that can reasonably be classified as "stale" or "unsellable" may be marked down. After six (6) months, if OPERATOR determines that any aged merchandise in the Pro Shop cannot be sold or should not be sold because of the reputation or image of the Pro Shop, then OPERATOR may sell the merchandise at less than cost and include the payment for the merchandise in the Gross Revenues. 4.01.2 Golf Instruction. OPERATOR shall provide for golf instruction by qualified instructors supervised by the Golf Professional. All instructors shall be PGA or LPGA Class A golf professionals or apprentices, unless otherwise approved by Director. All golf instructors shall be employees, unless OPERATOR proposes an alternative plan that is approved by the Director. OPERATOR shall cause all golf instructors to comply with the rules and regulations set forth in the Golf Course Manual. It is expected that the Golf Professional and instructors will provide tips and mini lessons at no cost to golfers. a) Availability. There shall be a PGA or LPGA Class A golf professional or apprentice available to answer questions and address customer concerns in the Pro Shop. b) City- Sponsored Recreation Classes. The OPERATOR shall work in conjunction with the Director to provide group lessons at the driving range, putting greens and Course as a part of the CITY- sponsored Parks and Community Services Department classes. c) Junior Golf Programs. As provided in the Manual, OPERATOR shall organize and implement junior golf programs through CITY's Parks and Community Services Department, Recreation Division. 4.01.3 Golf Carts. OPERATOR shall procure by lease on behalf of the CITY and maintain in good condition power- driven golf carts in sufficient numbers to meet the public demand as set forth in the Golf Course Manual. If the term of such leases extends beyond the term of this Agreement, OPERATOR shall assign, and CITY shall assume, such leases. The Director shall have the right, in Director's sole and absolute discretion, to require a change in the number or types of golf carts in use at the Golf Course; provided, however, that the CITY 11