I will hit accept for each reply once we are done...
(The above answer plus paying off his legitimate business
expenses which he has receipts for totaling around $500. right?)
I offered him $1000 total which would pay off his business expenses and nearly all of his capital investment.
This is what he emailed asking for (please note he is counting his initial capital investment as an expense):
"You know know and I know companies sell for 3 to 5 times their net value. In the last two months, we have sold close to $1000 each month. This is a great company in which both parties have built. You offered me $1000 for everything. Are you trying to cheat me? I know you better than that and that is not a fair offer. You told me you would be fair and $1000 does not even cover my expenses. Here is what I am thinking:
1) The total expenses equal $1,187.18, in which, I have all the necessary receipts to prove legally.
2) I am not trying to gouge anyone's eyes and ask for 3-5K, but I have come up with a number of $1,187.18 + $1,500 for a grand total of $2,687.18 to sell out my share of the company."