How to give away a macbook

So I'm thinking of passing on my MacBook White to a friend with no Apple experience.
This MacBook came with Leopard and can only be upgraded to Lion, which it is at present.
Question; can I nuke & pave and install my copy of Lion and pass it on that way? I don't want to break Apple's terms of service etc. Obviously I wouldn't include any Apps or iLife or Pages or anything like that, but is the OS okay to leave on?
Thanks for any feedback.

Your copy of Lion (Mac OS X 10.7) is actually linked to your Apple ID. It cannot be given away. It is licensed to you alone.
Best thing to do here would be to use the original disks that came with the MacBook to erase the hard drive and then install the original operating system and other software that came with it.
If you do not have the original disks, you can purchase an OS disk of Snow Leopard from Apple for about $20, and erase and install from that. One problem, though, your friend will not get a lot of the applications that normally come with the computer this way - iMovie, iPhoto, etc. all will have to be purchased separately.
Best of luck.

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