[beachstartup]

usually those kinds of contracts are presented with guaranty of a severence package or at least a single big check, which is supposed to ameliorate/attenuate any hard feelings. nobody can coerce you to sign something like that, and besides, the enforceability of those contracts is dubious (outside of normal libel/slander laws) so they want you to take the money and happily leave.

there's also supposed to be an exit interview in which you are told why you are being let go and the details of the above. this is also designed to prevent anger. people, even when losing their jobs, respond well to truth and money.

and in my experience it usually works fine, but in this case, it doesn't sound like either happened. or maybe he refused the contract and hence, refused the money. that's certainly possible.