He's saying, in effect, that he doesn't trust you. But he's then forcing you to trust him. You might be able to save the situation by agreeing on some definite

He's saying, in effect, that he doesn't trust you. But he's then forcing you to trust him. You might be able to save the situation by agreeing on some definite milestone that you could reach in, say, a month, and which if you reach it the IP goes to the company. Then your risk is capped at a month's work, and his is decreased by a month's data about your performance.