The problem I got is he wants me to resign before seeing the contract,
No, first comes the term sheet.
EDIT: Then, the ShareHolding Agreement. I'll admit, I didn't realize this one was so important until I read Alex Hayward's excellent answer.
Then comes the contract, along with a vesting schedule.
And then, and only then, comes the resignation.
And I'm sorry, but if the guy doesn't know what a term sheet is, or how contracts actually work, he shouldn't be CEO, and he should just bow out and let someone else take over.
also he said that the accountant won’t give me shares until I’m an employee.
Of course, almost no one gets their shares on the signing of the contract (unless they have a ton of leverage for some reason), they’re usually dispersed over some period of time to incentivize you to stay with the company.
And that's why you need to see the final contract and the rest of the other documents before you can make an actual decision.
Either he doesn't know what he's doing, or he's negotiating in bad faith.
In case it's bad faith, I would just reject his offer via email. Having a written time-stamped record of the rejection could potentially help you should he ever try to get you fired by implying that you were interested in leaving your current employer.
And in case he's really negotiating in bad faith, after sending my rejection of his offer, I wouldn't even speak to him anymore. I personally believe it's a waste of time to start a new company with someone you don't trust.