[maxniederhofer]

An option for you guys could be to wait until you do your first round of funding and have the incoming investors buy him out. I've seen that done before and it worked well.

Lesson: always include an option to redeem the shares of a founder who leaves. Redemption can specify whether that takes place at nominal or market value of the shares. There should be a good leaver/bad leaver clause that outlines what happens if a founder is fired or leaves voluntarily.