If you negotiate do so with our lawyer\'s help. These folks are playing for keeps. Don\'t Bring A Knife To A Gunfight....
This is good advice imho. This guys sounds like he knows contract law, or at least how to turn a contract in his favor. The contract should be fair and protect both parties. If on the off chance you decide to negotiate, i would consider they have brought their lawyer to the table and you should bring yours. As others have stated this is just the opening offer he is making and likely expects you to counter.