Offer #3, but suggest #2..... Hell, if you are making 30 to 50 bucks a night in tips, and really want to see if you can build the gig some more, offer to drop your price to him 30 or 50 bucks a night until March - you'll still make what he initially offered.....

Short term concessions during the worst business time can often save a gig until things turn around. Just get a solid commitment to what level of business increase he expects to see (to check for reality!) before things get back to their current level, or even beyond! OTOH, if you can easily get a one hour gig for the same money as regular as this gig, why did you take it in the first place?

And to the posting of the email....... perhaps if you had just paraphrased the email and not included the owner's name you might have avoided criticism... the answers would still be the same, and potential employers, should they find out about this breach of confidentiality, would be more likely to hire you.....