If it's all as you say then since Jim is saying he wants everything and you should get nothing despite the fact hat you legally own 40% of the company without condition, I'd now be a hard ass, assert I own 40% of the company, and that I intend to defend that ownership. Put Jim on the defense. By saying you owe nothing he just told you he intends to steal two years of your full time work, which I'd estimate has a street value of at least $250,000. Someone who just told me they plan to steal a quarter million dollars of something I own is my enemy and a serious threat that requires professional legal assistance to defend against. Your ownership might be worth nothing that you can ever get back, but the labor and expertise you contributed still has a value that you yourself invested in the company and morally validates your ownership of 40% in addition to the already established legal fact.
Right, thanks a lot. We are friends and I've told him that I'm flexible & willing to find a reasonable solution that would be fair to both of us, but the fact that he doesn't want to talk about it at all really puts me in the position you've described. The thing I'm not sure about though is the ownership of the app - if he said to me that he'll simply form another company, I guess I'll wait if they make something of it and then I'll come back asking for a fair share
