I'm assuming you didn't have a partnership agreement with a buy/sell or liquidation clause in it.

Not knowing what each of you brought to the table in the beginning makes it difficult. If he put up the startup money, and working capital and you provided the license, I'd say you're probably even.

If I were your partner I "think" my position would be. I'm the one that got and am responsible for the loan to sustain the business, without it...it would be gone. I would probably try to work out a deal, probably on a percentage basis to "rent" your license for a period of time. This is something I can do pretty readily with anyone else...Then it's just a matter of what the percentage should be. My buddy has a drain cleaning and plumbing business and he rents the license of the guy he bought the business from for 10% of the labor on plumbing jobs only, since in my state you don't have to have a plumbers license to clear drains.

All indications are the current economic climate is going to be around for at least a couple more years. That may limit the future potential of the business.

This isn't the only way to handle it, but it's the way I would. In either case...whatever you agree on...have a lawyer draw it up for you.
Denny