When employees are released from companies, they are sometimes required to sign a termination of employment contract. These contracts are made in exchange for the company granting that employee their severance package. A severance package is anything given to the departing employee in addition to the payment of their previously earned wages. This may include continued payment, insurance, a bonus lump sum, electronics or stocks. Agreements by the company in exchange for the employee's agreement to the contract are also granted. In other instances, the termination contract is prearranged and placed as part of the initial employment contract. Agreement to termination.