Lowengard,
Thank you very much for sharing your thoughts. It did help me resume thinking on this, I was almost blocked.
I guess what you said is the correct way to go, majority of the share to me until it's established and once company starts putting in their own money for hiring the team and other such things, they can increase the cut.
Also, good help with that calculation. It was obvious but I wasn't thinking on those lines for some reason :P

I will have a talk today with the CEO and will probably come back with more questions.

Anyone else wants to give their inputs? I'd appreciate it.

Thanks very much!
John