[abannin]

1) Talk to a lawyer. Details are going to vary wide depending on where you are and the documentation that exists.

2) Your work has value, quite possibly more value than the capital put in by Jim.

3) If you own 40%, Jim has to buy your 40%. You position as a shareholder is not related to your position as an employee. Ownership doesn't disappear. I don't quite understand how/why you would reduce to 5% from 40% (without dilution events).

4) Don't sign anything until you talk to a lawyer.

[mickeyM]

Thank you. We're not from the "better" European countries, so I'm not sure whether my work would have that much value. Maybe it would, but Jim would NEVER pay that kind of money. In that case I would most likely end up with some equity and nice bill from a lawyer, which isn't something I can afford right now.