>> I'd like to propose option D. >> All right, well I've been taking this class in negotiations and I wanna apply some the principles here to get a better agreement overall, what's the pie? >> I think it's 10 million, because there's a 10% chance that the drug will be approved which will give it 100 million value. >> Okay- >> But you think it's 60 million. So I mean, I don't know if we agree. >> Well, we don't agree now. But I think we both can agree that the pie is 100 million if the drug is approved, and nothing otherwise. So, let's just split it. 50 million, 50 million. >> Oh, but that's actually not one of the options on the table. >> Yeah, I know that it's not one of the options on the table. But I think, it's a better option than anything listed. >> And what is that mean in terms of the contract? >> Well, it means that you pay me 20 million upfront, plus a $50 million bonus. >> But I don't make any money, if the drug isn't approved. >> Well, neither do I. >> No, that's not true. You made $20 million. >> Yes, but I walked into this negotiation with a $20 million offer from Zums already. So I don't make any more, anything more from this deal if the drug isn't approved. And the whole reason for me to work with you is to get the drug approved, otherwise I might as well go to Zums. If the drug is approved that increases profits from 20 million to 120 million. I can't do this without you, and you can't do this without me. And that's why I propose we split 100 million, 50/50. And look, I know that just as much as I want the 100 million all to myself, you want the 100 million all to yourself. But the only fair result is that we split it 50/50. Do we have a deal? >> Okay, deal. >> All right. >> Well I can see a way that we can get even more pie, on the table. >> Oh yeah? What would that be? >> Yeah, well you're interested in a high bonus and you're obviously interested in paying less upfront. So why don't we, lower the upfront payment to 15 million and raise the bonus to 100 million. In which case you, because you think there's a 60% chance of the FDA approval going through. Can value this deal with at 75 million as opposed to 50 million, what's currently on the table. Correct? >> Okay? >> And you, would be paying 5 million less upfront, great for you.. And the additional $50 million of, $100 million dollar bonus only costs you 5 million. So to wash in the end, you're spending the same in this deal as you are in the first one. >> Okay, but if I get $100 million?- >> You're expected to spend, rather. >> Okay? But if I get $100 million bonus, I don't see what incentive there is for him to get the drug approved. >> Right, there would be no incentive at all, actually. >> Fair enough. So, I guess we could say that we still keep the upfront price at 15 million? And make the bonus 80 million. So that for you, leads to a value of 63 million as opposed to 50 million- >> Okay. >> And an $80 million bonus only costs you 8 million. So, you're spending 23 instead of 25. You're saving $2 million on this deal. >> Okay- >> Yeah- >> Right? >> Yeah- >> Okay, I think that's a good deal. >> That works- >> Yeah? More pie. >> Great- >> Great. >> Thank you. >> Yeah, thank you. >> Thank you. >> Thanks. >> Good job.