IANAL/IANAA/etc. This sounds a little messy. Draws/dividends aren't mandatory or an entitlement. As the majority holder and presumably the CEO, draws, reinvest

IANAL/IANAA/etc. This sounds a little messy. Draws/dividends aren't mandatory or an entitlement. As the majority holder and presumably the CEO, draws, reinvestment, and fat bonuses (to him) would be at his discretion. If you really want to do this as an ownership thing, I'd ask for preferred shares and explicitly enumerate some rights/protections. (You have the right to inspect the books; a mandatory dividend payout; spell out his compensation in advance; etc.) What about doing this as a partnership/royalty deal? You take 10% of all proceeds, net of hosting expenses? That sounds like it would be much cleaner. He could still buy out your share of the partnership at a later date.