dolution

Rosina has recently developed a highly original computer program that, she claims, will revolutionize the practice of landscape architecture. She has been advised by a consultant that marketing the software is likely to be a highly profitable venture. However to develop and market the project will require working capital, which Rosina does not have. Fortunately her uncle, Bartolo, has agreed to put $100,000.00 of his savings into the project. With the held of a lawyer friend (who has advised them that they should each obtain independent legal advice), they have worked out a rough structure for their project, as follows: a) They will form a corporation, of which they will be the sole shareholders; b) Rosina will assign her copyright in the program to the corporation and will work full-time in developing and marketing it; c) Bartolo will contribute $100,000.00 in cash as working capital and will participate in major management decisions but will not be responsible for the day-to-day running of the business. Since Rosina will be giving up a fairly well-paid job in order to develop the new business, she is concerned that she should not be left entirely without income during the initial period (when there would be no sales revenue). In turn, Bartolo would like there to be some sort of guarantee of a reasonable return of income on his investment. Bartolo should:
-take back a secured bond or debenture
-become a common shareholder only
-become an employee
-insist on being the president