Requests via letter or telephone will not be accepted. A termination and release agreement is a contract that is used when two parties mutual agree to end a legal contract.In this article, we focus on what a termination letter is, explain how to write one and provide a template and examples that you can use. Please be advised that the forms detailed below are intended to be a guide and as such do not address every possible situation. Formally conclude agreements with our termination of agreement and release template. Prevent future disputes and ensure clarity for all parties involved. A sample letter terminating an employee without cause such as layoff or reduction in force. A Release (Form 7554-18), from the prime contractor. (Applies to final payment only); A Tax clearance letter, if the prime contractor is out-of-state. Only the original application will be accepted.