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only to the provision set forth in Section 3 of this Agreement. As the General Manager serves at the will of the Board, there is no term to this Agreement and it shall remain in force and effect until terminated as provided in Section 3 below. Section 3: Termination and Severance Pay A. Right to Terminate Employment. The Board may terminate the services of the General Manager at any time with a written notice to the General Manager setting forth the date of termination in that notice. B. For Cause. In the event the General Manager is terminated for any of the following causes, the District shall have no obligation to pay Severance Pay to the General Manager as provided in subsection C below: a. Insubordination, dishonesty, misappropriation of public funds, or falsifying District records; b. Repeated and continued unexcused absences from the District's office resulting in a failure to perform his normal duties; C. Conviction of any misdemeanor concerning an act amounting to improper conduct as a General Manager or involving moral turpitude; d. Habitual intoxication while on duty, or the continued abuse and use of drugs and/or alcohol; or e. Conviction of, or plea of guilty to, or plea nolo contendere, to a felony. C. Without Cause. In the event the General Manager is terminated by the Board or requested to resign due to a reason not related to any cause in subsection 3(B) above, during such time that the General Manager is willing and able to perform the duties under this Agreement, the District agrees to provide the General Manager with either subsection a or b below, such selection made at Board's discretion: a. Two hundred seventy days (270) days' advanced written notice of said termination; or, b. "Severance Pay" in the amount of a cash payment equal to nine (9) months' of the General Manager's then aggregate annual salary pursuant to Government Code Sections 53260 — 53264, and the amount equal to his unused aggregate and accumulated vacation hours at the General Manager's then prevailing hourly salary rate. Said Severance Pay may be paid, at the option of General Manager, in: 1. A lump sum upon date of termination; 2. A lump sum on January 1 of the year following termination; 3. Continued payments under the District's normal payroll cycle over a nine (9) month period; or, 4. Any combination of the above three options as directed by the General Manager. If terminated without cause, the General Manager may agree to submit a resignation or process his retirement in lieu of an announcement of a formal termination by the Board. In event of any type of termination, resignation or retirement, the General Manager shall not be paid for any unused sick leave, GENERAL MANAGER EMPLOYMENT AGREEMENT 5/14/2014 Page 2