After considering the pros and cons of investing $12 million up-front, you and Nigel agree your fund should invest only 5 million initially based on meeting the Year 5 target initially established by Nigel, and that a 50% IR is an appropriate target return. Before offering a Term-Sheet to Nigel, you decide a stock option pool must be created in order to recruit additional senior managers. After some discussion, it is concluded amongst all parties that the senior management team (not including Nigel) should have options ultimately to own 15% of the company. It is agreed the stock options will not vest until the end of Year 3 (ie, the management team will not be able to exercise their options until the end of Year 3. This means they cannot actually own any shares until then). Given this new approach and taking into account the stock-option pool: Question 8: What share of Excite will your fund need to own under the new assumptions in order to achieve its 50% IR objective by the end of Year 5