Is the empty string a terminal symbol?
It's true that, in general, definitions don't include the empty string in the set of "terminals", as there's no need for that (e.g. the production rules for a context-free grammar are defined as a relation $V \rightarrow (V \cup \Sigma)^*$ - the star covers all productions of the form $A \rightarrow \epsilon$; in all other contexts, it can be omitted because it has no effect on concatenation).

Note, however, that in the case of a CNF grammar, you couldn't just make a simple convention for "terminals" to include the empty string and cut down to just the first two rules, because rules of the form $A \rightarrow \epsilon$ are not allowed for all non-terminal $A$, just for $S$.