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Help Not able to remove account

My dad has an HTC Desire. He used to work at this company and so he synced his work account to his phone. However, he left the company and is not using the account anymore (duh). He's using his personal Gmail account now. I've tried opening Market, but it prompts for his previous account (maybe he attempted to sync that account to Market, he doesn't remember). I tried removing the account, but it said some applications were using it and so I would have to do a factory reset. I've tried to avoid doing that by clearing data on Market and any other apps on which he might have used the previous account. But it still wouldn't let me delete it. I'm avoiding factory reset as he does not want to lose his contacts, and he thinks back-up+restore is a little risky. Can someone help me out on this?

P.S. I've taken a look at the other threads, and they suggest factory reset, which is why I'm posting a new one.
 
. I'm avoiding factory reset as he does not want to lose his contacts, and he thinks back-up+restore is a little risky.
Your contacts are stored and backup daily to your Google account. However, just to be on the safe side - prior to doing a "reset," it would be a good idea to export all contacts to the current Google account.

Here's how to do that: open the people app - tap menu - import/export - export to SD card. Once you sign back into your Google account from the device, your contacts will automatically sync back to the device.
 
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