Complex sentence: Nigel and Nick go home to their small house, and on the way Nick encounters Shylock the Jew, an old man who wants to help fund the troupe, but Nick tells him it would be illegal.
Split into simpler sentences: Nigel and Nick go home to their small house, and on the way Nick encounters Shylock the Jew. Shylock expresses a desire to help fund the troupe, but Nick tells him Shylock's Jewishness would be illegal.