After he holds a knife to your throat, just kill him.
If you like him, let him join you.
At some point I may have to create a worshipper of Bhaal and just murder hobo everyone once their usefulness is over.
*Chuckles* Actually, I think I just left him by the roadside as he whimpered "So that's it then?!, blah blah blah" (well after I first gave him a try).