The separation payments include $112,935.98 in back pay and unused vacation days, $50,630.80 in attorney's fees and other legally required Social Security and retirement contributions, according to the agreement
"This agreement, which contains no admission of fault or liability, includes a release of all potential legal claims," it states.
Kerrick had been suspended without pay since September 18, 2013.
"This resolution allows CMPD and the Charlotte community to move forward in the healing process and continue our work together on open, candid and wide-ranging community dialogue about community and police relations," Charlotte-Mecklenburg Mayor Dan Clodfelter said in a statement.
A separate civil lawsuit by the family of Ferrell was settled in May when the city paid $2,250,000.
On September 14, 2013, the former Florida A&M football player had a wreck so severe, Ferrell family attorney Chris Chestnut said, he had to crawl out the back window of the car.
Ferrell walked to the home of Sarah McCartney, who said she heard someone banging loudly on her door and called 911.
Dashcam video released later at the trial appeared to show Ferrell walking toward officers; he quickly begins running toward police as lights hit his chest.
Someone shouts, "Get on the ground!" three times, and shots are heard off camera.
Prosecutors said Ferrell started to run because he was afraid for his life after another officer pointed a Taser at him.
Kerrick's defense attorney said Ferrell became aggressive, pounding his thighs and taunting Kerrick, saying, "Shoot me! Shoot me!"
The video, however, didn't show either event.