First, never ever ever do a startup without vesting and without a buy/sell agreement (I've always liked the shotgun clause: http://en.wikipedia.org/wiki/Shotgun

First, never ever ever do a startup without vesting and without a buy/sell agreement (I've always liked the shotgun clause: http://en.wikipedia.org/wiki/Shotgun_clause http://en.wikipedia.org/wiki/Shotgun_clause ). Second, is he not working hard or just not showing up on time? If the latter, let him work the hours that he wants. If you didn't agree with the 8-6 expectations from the get-go, you've no right to impose it on him now. People work odd hours in startups. A lot of people are nocturnal. If he's not working hard, trying to "run the business as far as it can go with a lazy co-founder" is a ridiculous plan. Negotiate a split. Agree to something like the shotgun clause or being bound by arbitration and get it done. A freeloading co-founder is too poisonous and a startup is too fragile.