Contractor and Owner executed a "Geoexchange Water Supply Lease\" under which Contractor agreed to construct and maintain a system of its own proprietary design on Owner's property. Under the terms of the Lease, Contractor was to "furnish, maintain and repair, at Contractor's sole cost and expense, all design services, pumping equipment, water wells, main piping, metering and maintenance necessary to provide Owner with a sufcient quantity of geoexchange water to meet certain specications. Contractor was obligated both to supply all the component parts of the system, and to perform any on-site work needed to install and maintain them, and the Lease provided that any \"equipment installed by Contractor shall remain the sole Property of Contractor until the Owner exercises its option to purchase the equipment." The Lease stated that Owner would \"have the option to purchase the Supply System at any time during the term of this Lease," at a purchase price of "$296,075 during the rst eight years from the date of this Lease," and at any time thereafter for $281,000. Owner could exercise the purchase option at any time by "giving 60 days prior written notice to Contractor," and the Lease provided that "[u]pon Owner's exercise of the option to purchase the Supply System, and Contractor's delivery of a warranty bill of sale covering the Supply System," the Lease would terminate. The Lease "start[ed] on the rst day the geoexchange System [was] operational and continue[d] for ten years," and it offered Owner the "option to extend the lease term for eight consecutive terms of ve years." The Lease contained an evergreen provision, by which the renewal option was triggered automatically unless Owner notied Contractor in writing that it did not intend to renew. The Lease provided that either Contractor or Owner could terminate it in the event of a "material breach" by the other party followed by a failure to cure for sixty days after written notice of the breach. Such a geothermal water supply system typically has a useful life span in the range of 50 years. Which one of the following statements is likely true? The Lease creates a disguised security interest because Owner had the right to purchase the system for nominal consideration at the end of the lease period. . The Lease creates a "true lease" because the plain language of the agreement states that it is a lease. . The Lease creates a "true lease" because Owner's option to purchase the system was not for nominal consideration. The Lease creates a disguised security interest because Owner had no right to terminate the Lease