SANTA ANA GOLF, LLC (COURSECO, INC.)

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Mark Down of Merchandise. Merchandise that can reasonably be classified as "stale" or "unsellable" may be marked down. After six (6) months, if Contractor reasonably 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 Contractor may sell the merchandise to third parties at less than cost and include the payment for the merchandise in the Golf Revenues. Contractor may not sell or transfer Pro Shop merchandise to any entity owned or operated by an affiliate of Contractor without prior written City Representative approval. f) Golf Instruction. Contractor shall provide for golf instruction by qualified instnictors supervised by the Golf Professional. All instructors shall be PGA or LPGA Class A golf professionals or apprentices, unless otherwise approved by The City Representative. All golf instructors shall be employees of Contractor or independent contractors with agreements directly with the Contractor,unless Contractor proposes an alternative plan that is approved by the City Representative. Contractor shall cause all golf instructors to comply with the rules and regulations consistent with the goal in Section 3.1. It is expected that the Golf Professional and instructors will provide tips and mini-lessons at no cost to golfers as appropriate. i. Availability. There shall be a PGA or LPGA Class A golf professional or apprentice available on the Premises to answer questions and address customer concerns. ii. City Recreation Classes. The Contractor shall work in conjunction with the City Representative to provide services for City golf programs at the driving range,putting greens and Course. iii. Junior Golf Programs. As provided in the Golf Course Manual, City shall encourage and facilitate junior golf programs. g) Golf Carts. Subject to the Existing Golf Cart Lease (defined below), Contractor shall procure by lease on behalf of City and maintain in good condition powcr-driven golf carts in sufficient numbers to reasonably meet the public demand. City shall increase or decrease the applicable annual budget line items reasonably to account for resulting increased or decreased direct costs. Prior to procuring golf carts, Contractor shall give the City Representative information identifying the type of golf cart, features of golf carts, and proposed lease terms and shall obtain City Representative approval. The golf cart lease shall provide that it is assignable to City should this Agreement terminate for any reason. Contractor shall lease golf carts in accordance with the City Representative's approval. Contractor may prohibit the use of golf carts on the Golf Course whenever weather conditions expose the user to danger or the Golf Course to damage.Contractor shall employ an on-site mechanic who is able to repair and maintain golf carts.