Ouch. Excuse me. I'm just glad to have news stories about Downey that don't involve the house the Carpenters used to live in.
First, if someone does the work, they should get the pay/equity, regardless of age.
I say forget grades and jumping through other people's hoops. If he wants to do it, he will do it for its own sake.
Second, I'd let the poor kid hang out at my startup just to get away from his parents and structure. He can play with action figures or something. Of course maybe he's perfectly happy where he is, but if not, it would be nice to have someplace to go where the adults just leave you alone. A lot of us can relate to his situation.
I am not in a position to have anyone intern (I run my startup out of my house -- Downey doesn't let you have a business license for an apartment, by the way!) That, and I flunked out of college in my first semester.
My offer is entirely tongue-in-cheek and it came from the same place you're coming from. But I understand you don't know me, so it's cool. Nice to meet you!
I really think he needs a break from his parents. It might do him some good.