The things you mention (customers, schematics, etc) are a lot different than a password. If the company has any clue what the're doing then that small, trivial password becomes completely useless immediately after he is fired. I can't remember if it was the root passwords he refused to give up or his own account's password. If it was his own there is no reason for the company to need them. If it was the root passwords why was he the only one with them? One person should not hold all the root passwords for the company's equipment and I'm pretty sure he had a boss that should have made arrangements in case Terry suddenly died.