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It all comes down to are AWE continuing to make money on the referred people, if so, then you just stole his money because you saw a get out clause. If not, you fucked up anyway by saying it wasn't against your terms but check eBay.
Either way, pay the guy out, and ask him not to do it anymore. Your guy told him it was ok but check eBay, no mention of AWE terms, your guy SHOULD have checked the terms himself and then informed the webmaster.
End of.
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