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notice of resignation, or sooner, Employee, in consultation with the City Council, will develop a "transition plan" and Employee will, if requested, assist the City Council in the recruitment and hiring process for the position of City Manager on a permanent or interim basis. (b) Subject to the provisions of the Charter, City may at any time terminate Employee upon thirty (30) days advance written notice. (c) The parties recognize and affirm that: 1) Employee is an "at will" employee whose employment may be terminated by the City without cause, and 2) there is no express or implied promise made to Employee for any form of continued employment. This Agreement is the sole and exclusive basis for an employment relationship between Employee and City. 4. SEVERANCE PAY If Employee is terminated by the City Council while still willing and able to perform the duties of City Manager, City agrees to pay Employee a cash payment equal to six (6) months salary and benefits. At the option of the Employee, the cash payment may be paid in (1) a lump sum upon date of termination; or (2) a lump sum on January 1 of the calendar year following termination. Such payment will release City from any further obligations under this Agreement. Provided however, if Employee is terminated because of conviction of any criminal offense, then City shall have no obligation to continue the employment of Employee or to pay the severance set forth in this paragraph. 5. SALARY For the term of this Agreement, City agrees to pay Employee a salary 20% above step five of the salary range of the highest paid City management employee as shown in the City Council adopted Pay Plan (hereafter referred to as "the Baseline Salary"). Employee's compensation shall be adjusted whenever the Baseline Salary is adjusted so that Employee's salary shall not be less than 20% above the Baseline Salary at any time during the term of the Agreement. 6. AUTOMOBILE Employee's duties require that he shall have the use of an automobile at all times during his employment with City. At the option of Employee, City shall either provide Employee with an automobile or reimburse Employee $475.00 per month for the expense of owning, maintaining, and insuring a personal automobile. 7. OTHER SUPPLEMENTAL BENEFITS The City shall provide the Employee the same benefits as provided to management employees and as they may be amended from time to time. All actions taken by the City relating to benefits for management employees shall be considered actions granting the same benefits to Employee. As used herein and without limitation of the foregoing, benefits for Employee include but are not limited to twenty-five (25) days of annual vacation leave, twelve (12) days of annual sick leave, 2