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but such unused sick leave shall be applied to his PERS service credits to the extent permitted under the PERS rules and regulations. D. De Facto Termination Without Cause. In the event the District, at any time during this Agreement, reduces the salary or other benefits of General Manager in a greater percentage than applicable to an across-the-board reduction for District administrative employees and the Board refuses to cure that action following a fifteen (15) day written Notice to Cure from the General Manager, the Board's non -action (i.e., failure to re -instate any salary or benefit reduction) may then be deemed by the General Manager, at his option, a "termination" of the General Manager on the 16th day following the date of delivery of the written Notice to Cure and triggers the General Manager's right to receive the Severance Pay set forth at Section 3(C)(b) above. E. Voluntarily Resignation. The General Manager may voluntarily resign his position with the District at any time and in that event, the General Manager shall provide District at least ninety (90) days' written notice in advance, unless the parties otherwise agree to a different time period, and such a resignation shall not be deemed a termination triggering any rights to Severance Pay described in Section 3(C)(b) above. F. Inability To Perform. In the event the General Manager becomes mentally or physically incapable of performing the General Manager's functions and duties with reasonable accommodations, and it appears to the Board such incapacity will continue for more than six (6) months, the Board may terminate the General Manager and such termination shall trigger the General Manager's right to Severance Pay set forth at Section 3(C)(b) above. G. Full Compensation For Termination. The District and General Manager agree that the 270 day advanced written notice or payment of the Severance Pay set forth in Section 3(C) above is intended to fully compensate the General Manager for any and all losses, harm and damages, such as but not limited to, the loss of the opportunity of transition into other employment, the loss of securing any alternative employment opportunity, the loss of income, the loss of opportunities for retraining or further education, the loss or erosion of personal investments and savings, the loss or reduction of retirement benefits, the loss of a residence, the loss of medical insurance and other insurance, and any resulting emotional distress to the General Manager or to the General Manager's family. Section 4: Salary; Annual Review District shall pay General Manager for all of his services rendered pursuant hereto an annual salary of $203,293 effective for pay period starting May 31, 2014, with such salary or benefit adjustments hereafter as the Board in open session shall authorize. Salary shall be payable in the normal payroll installments at the same time as other employees of the District are paid. The Board shall review the General Manager's salary and benefits annually as part of his performance evaluation under Section 5 below. Increase(s) provided to other employees and the benefits of the General Manager's longevity as the General Manager of the District shall be taken into consideration by the Board during this salary review. The Board shall then provide an increase(s), if any, to such an extent and effective at such time as the Board, in its full discretion, determines is desirable. The Board shall review General Manager's Salary Range when it preforms a review of salary ranges for other District employee positions. Section 5: Annual Performance Evaluation GENERAL MANAGER EMPLOYMENT AGREEMENT 5/13/2014 Page 3