"Buying down maintenance" - Anybody heard of?

Hello all,

I am currently working with our AS/400 software provider to negotiate a
lower annual maintenance contract.  Historically, this has resulted in
proposals for signing contracts for multiple years, prepaying, etc.

This time they are proposing "buying down maintenance", whereby they
re-value my software at a lower cost, charge me for re-licensing, then
value maintenance at re-valued licensing cost.  Ex.  Current SW
estimated at 270K.  Originally proposed annual maintenance of 17.5% =
47.25K.  2 years of maintenance = 94.5K.  Re-value SW at 60K.  Pay 60K
for re-licensing.  Maintenance on 60K at 17.5% = 10.50K.  2 years
maintenance = 21K.  2 years of re-licensing/maintenance = 81K vs. 94.5K
which results in "savings" of 13.5K over 2 years.

Has anyone heard of this?  Gone through something similar?  Advice?
Should I go for it?  Should I be concerned that proposal re-values
software at about 22% of "original" cost?  Would re-licensing be a
capital vs. expense item?

Thank you!

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