Paying him out is not the same thing as terminating his contract although the end result could be the same.
I say could because I am assuming that if the Nix pay him the full remuneration due for the term of the contract then it has fulfilled its
contractual obligations and the contract has, in effect, been completed and is ended.
Of course it's impossible to know for sure if paying him out fully discharges the Nix's obligations and ends the contract unless you are privy to the terms and conditions of the contract.