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What is a severance?

What is a severance? Here are some definitions.

Noun
  1. The act of severing or the state of being severed.
  2. A separation.
  3. A severance payment.
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Examples
It was the highest military contact between the two sides since the severance of formal diplomatic ties.
Jobs at the council have already been slashed through voluntary severance packages.
The offer of severance was merely a retractable promise to pay severance with an explanation of how it would be computed.
He said on Wednesday that he was prepared to step down at any time to take responsibility for the severance of diplomatic ties.
More ominously, the severance of the Anglo-Norman reign had left John free to turn his attention to Wales and Ireland.
When he was finally exposed and booted, Dunlap had the nerve to demand severance pay and insist that the board reprice his stock options.

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