The powers and duties of the town manager shall be regulated by ordinance. Council may enter into an employment agreement with the town manager. The employment agreement may set forth the terms and conditions of employment, and the agreement may provide that it shall remain in effect for a specified period terminating no later than two years after the effective date of the agreement or the date of the organization meeting of council following the next municipal election, whichever shall first occur. An employment agreement entered into pursuant to this section may specify conditions under which a town manager would be entitled to severance compensation, but in no event shall an employment agreement guarantee employment through the term of the agreement or confer upon the town manager any legal remedy based on specific performance. The council and the president of the council, when authorized by ordinance, may delegate subject to recall any of their respective nonlegislative and non-judicial powers and duties to the town manager. He shall give a bond to the town with one or more sureties or one bonding company, to be approved by the council, in such sum as it shall by ordinance direct, conditioned for the faithful performance of his duties.