Since the contract was no longer binding, I think it was terribly nice of him to still offer to hand over the password.
I'm pretty sure most contracts like that ARE binding even after you quit. Otherwise disgruntled employees would leak passwords and/or sensitive materials from major corporations / government organizations to the public all the time.
"My sense of purpose is gone! I have no idea who I AM!" "Oh, my God... You've.. You've turned him into a DEMOCRAT!" -- Doonesbury