Robert_Charlton - 11:01 pm on Aug 13, 2013 (gmt 0)
I'm happy to have some of the Google juice flow his way if it helps him.
From what I've been hearing and reading Google say, Google is not happy to have the link juice flow his way under such circumstances. In this regard, Google is not "misunderstanding". Google is understanding perfectly.
"Paid", though, is perhaps now the misleading word. "Arranged" might be more appropriate to describe what Google isn't liking. Google wants links given only because of independent editorial judgement. This is particularly true of keyword-rich links.
Depending on the authority of your site, I would even hesitate to link back to his domain as a dofollow.