I wouldnt offer him a cent more, id personally have offered him less $$ and less years, that was a very generous offer imo
i think the Pacers should move on and see who else is out there, i doubt keeping Stepherson at that money or more would really help them win a title or even the East so even if they lose him for nothing could be better off in the long run, maybe a step backwards to take 2 steps forward. Given there worse case scenario is starting Evan Turner at sg, they wont be too bad even if they dont replace him, and not signing him on big $$ will give them some space and roster flexibility at some point down the road if not this off season.
Better than locking in a long term, big money deal with a guy like Stephenson, whilst he is talented, he is volatile and even his play is inconsistent, he reminds me alot of JR Smith aswell, and look how paying him and locking him into a contract turned out.