7.3  Permitted Transfer and Disposal

The Service Provider may sell, lease, transfer, grant rights over or otherwise dispose or part with possession of any item of Apparatus to the extent that:

(a)  such disposal is identified in the Core Investment Programme or an Annual Investment Programme (as the case may be); and

(b)  in the Service Provider's reasonable opinion, the Apparatus comprises equipment which is of a waste or scrap nature (which, for the avoidance of doubt, the Service Provider is obliged to dispose of at its own cost pursuant to the Output Specification).