Wrong. The 10% penalty that you are speaking of is assessed to you on your tax return in the year of the distribution. You have to be 59.5 years old before that penalty is not assessed.

Since this is the case it would be best for you to wait until you are that age to take your distribution so that you may save that extra tax. Either way you will pay tax on the distribution at your normal tax rate.

Another option is for you to do a rollover and let the money sit there until you reach the age.

If you are over 55 and terminated the penalty will not apply. Under normal circumstances you must be 59 1/2, however the fact you were terminated changes everything. Taxes will always be assessed no matter the age.
So yes you are correct, because of the situation, you will not be assessed the 10% penalty.
Good luck to you!