"for an additional amount. Its not back pay or lost wages more of an agreement to leave and not talk about the situation."

Does that make it Termination/Severance Pay? Was there a lawsuit, or just an "agreement?"

There needs to be a lawsuit to have a settlement, and a lawsuit will have stated Grounds for the suit.

"I'm sure most have seen a client or two leave under circumstances such as this"

Sure; and we've all see lots of wrong 1099 documents issued, as well.

"I'm not too sure where the non employee compensation"

Box 7 is for Services performed; not a Legal Settlement or severance pay.

So either:

It's Termination Pay and incorrectly reported, should have been on the W2, and yes, Subject to FICA.

Or, it's not Box 7, but some sort of settlement for a qualified reason that would make it not subject to FICA.