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@Hovis
Just read through this thread, I feel for you Tom, it was a beauty and the fact that is has sentimental value makes it priceless. I have tried to put myself in your shoes and imagine what i would do in a similar situation with a good friend of mine. To be honest, if he is your friend, then whatever value you give him I think he should accept unquestionably. Its quite clear that youre not trying to make any kind of profiit so your friend needs to bite the bullet and cough up the value you feel its worth.
Remember though, he didn't do it on purpose, hopefully you'll be able to forgive him, but as I said, he needs to man up, accept it happened and fork out the cash, no questions asked.
My two cents.