I started a company in August of 2012 signing up 25 customers as a separate part of a corporation I have had since 2010 and brought in a partner in September. The partner did not put in any money but put in time around his full-time job. I provided all the financing and capital for the company in return I had the partner sign an agreement that he was entitled to 20% restricted stock and a agreed upon amount of compensation once the start-up launched.
We begin working on it and by December my partner begin to complain about working on the start-up for free. I explained to him that I also wasn't getting paid but that this was an investment in our future. He came back stating he was getting push back from his wife because he was working a full-time job and doing this part-time didn't leave a lot of family time. He asked that in order for him not to leave he be compensated which I agreed to for $3000 a month.
After the first month I looked at his contributions and realized that what he brought to the table part-time was not worth the $3000 a month. He stated that if he was going to be involved he would have to be compensated. I told him that it is best we discontinue our venture because we had initially stated that compensation would not come until we had launched. Now he is wanting me to buy out his 20%. We did not have a formal founders agreement all we had is a document we both signed stating that he would get 20% restricted stock and his compensation once the business gets going.
My question is since we have not launched and he was not a technical founder (I had to pay someone to build the site for us his role was more of coordinating with the tech guy who built the site and doing graphic design) what should I do if he doesn't accept the offer I make to him (which he has indicated he will not do) to try and keep the peace. He has not put in any money at all. All financing has come from me to get the site where it is. We have 93 customers ready for us to launch and all but one are from my previous business relationships. I want to be fair but I also realize that with the problems we are having now it is better to end things before a launch than wait until a launch and we actually have receivables.