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of five (5) years beginning January 1, 1990 and ending
<br />December 31, 1994, and in the event this option is exercised
<br />and Lessee exercises and performs all of its duties and
<br />obligations hereunder during the first optional_ term hereof,
<br />then upon applying in writing not less than sip: (6) months
<br />nor more than nine (9) months before the end of the said
<br />first optional tern lessee shall have the right of a second
<br />optional term of five (5) years beginning January 1, 1995
<br />and ending December 31, 1999, and then if lessee exercises
<br />and performs all of its duties and obligation,,; hereunder
<br />during the second ' option term hereof, then upon applying in
<br />writing not less than six (6) months nor more than nine (9)
<br />months before the end of the said second optional term,
<br />lessee shall have the right to exercise an option for a
<br />third optional five (5) year term beginning January 1, 2000,
<br />and ending December 31, 2004. Such first, second and third
<br />optional terms to be on the same terms and conditions and
<br />rental rates as established for primary term. If_ lessee
<br />exercises and performs all of its duties and obligations
<br />hereunder during the primary term, the first optional term,
<br />the second optional term and the third optional term, then
<br />upon applying in writing not less than six, (6) months nor
<br />more than nine (9) months before the end of the said third
<br />optional term, lessee shall have the first right of refusal
<br />to execute a new lease of the demised premises for two addi-
<br />tional consecutive five -year periods, .-with each lease for
<br />such additional period to be on such terms and conditions as
<br />lessor may prescribe and with the rentals provided for
<br />therein to be based on rental rates of comparable Fixed Base
<br />Operation lease in Northeast Texas at the time of the
<br />execution of each additional lease agreement. The addi-
<br />tional leases shall be upon the same terms sand conditions
<br />herein other than as to rental rates,
<br />ARTICLE V
<br />Hangar Rent,41.0ption
<br />A. Option. In the event lessee exercises and
<br />performs all of its duties and obligations hereunder lessee
<br />is given and granted the right of first refusal to lease the
<br />City of Paris Main Hangar depicted on Exhibit "D hereto
<br />attached. This option is available at the termination of
<br />the current lease to James M. Wrenn, Jr.
<br />ARTICLE VI
<br />A. Flowage Fee in Lieu of Rental for Ground and
<br />Equipment-. As annual ground and equipment rental for real
<br />and personalty shown on Exhibit "A" and "B" attached hereto
<br />Lessee shall pay to Lessor a fuel flowage fee as follows:
<br />From To Gallons Fee per Gallon
<br />0 135,000 $ .01
<br />135,000 200,000 .02
<br />r- 200,000 250,000 .03
<br />250,000 300,000 .04
<br />300,000 Infinity ,05
<br />B. Adjustment of Rentals. Upon written notice from
<br />lessor to lessee delivered within 30 days prior to the end
<br />of each five (5) year period during the term of this lease,
<br />lessor shall have the right but not the duty to adjust the
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